%73 of TEB’s loan portfolio is comprised of corporate, commercial and SME loans. Retail loans and credit card receivables increased by 40% compared to previous year and reached TRY 3.2 millions and their share reached to 25%.
Non Performing Loans decreased from 4.64% in 2009 to 3.00% in 2010, which is still below the sector average of %5.2.In other words, regardless of the loan growth and deterioration in the market, asset quality is above the sector average.
As of December 2010, 98% of our deposits were granted as loans. TEB meets liquidity requirement primarily from deposits and the share of deposits which is our main source of funding, reached 63% in total liabilities. Demand deposit’s share was realized as 20% in total deposits reaching 2.4 million TRY and thus made a significant contribution towards decreasing our cost of funding
TEB diversifies its funding resources by foreign borrowings. Bank utilized further sources of long-term funds through syndications from international markets and other similar sources; additionally, continued to create Turkish Lira funds using derivative instruments.
As of December 31, 2010, the Bank has a syndication loan of EUR 190 million and USD 100 million obtained on September 3, 2010, with a maturity date of September 2, 2011.
TEB has 4 outstanding subordinated loan facilities amounting to EUR 110 million and USD 156 million, borrowed from various banks and financial institutions between 2002 and 2007. The repayment of principal amounting 9 million USD is made on October 15, 2009,April 15, 2010, and October 15, 2010.
IT expenditures, promotional expenses regarding campaigns supporting the expansion of retail banking activities and specialization of corporate and commercial banking expenses, in addition, Fortis merger expenses regarding restructuring, operational expenses realized as TRY 788 million due to cost efficient policies and savings plan.
In 2010, 90,01 % of the share capital of TEB Finansal Kiralama A.Ş. was sold to Fortis Finansal Kiralama A.Ş for a consideration of TRY.113,3 Upon the completion of the sale transaction proceeds from the sale were collected and a profit amount of TRY 77.2 million was reflected to the Income Statement on 30.09.2010.
As of 18 October 2010, Türk Ekonomi Bankası A.Ş. has entered into exclusive agency agreements with Cardif Hayat Sigorta A.Ş. for distribution of life insurance products and with Fortis Emeklilik ve Hayat A.Ş. for intermediary services of pension and distribution of life saving products and a total of 180 million TL has been received as a result of these dealings.
Changes in the composition of TEB’s balance sheet due to the market conditions and growing number of customers increased fees and commissions income by 10% in comparison to the previous year. The Bank increased its net income, as a result of its operations as a whole, by 43%, from TRY 210.2 million in 2009 to TRY 300.3 million in 2010.