Entering into operation in 2015, Ziraat Participation was the first state-owned participation bank in Turkey. Operating under the principle of “Growth through sharing”, Ziraat Participation aims to be a leading participation bank by constantly generating value, which will inject power to participation banking both in Turkey and in the region. It is progressing towards its goals and objectives step by step by adopting sustainable profitability and efficiency as its key principles.

The Bank began accepting customers at the end of May 2015, after having completed the essential banking and operational infrastructure within the space of just 7 months.

Ziraat Participation targets to welcome customers from all walks of life into its portfolio and to offer a sound and accurate explanation of participation banking. It aims to be a participation bank sharing a system built on the foundations of supporting production as well as the real economy, based on a profit/loss partnership in the long term with the real sector and growing together.

Ziraat Participation will work to help the sector work more effectively and efficiently with its competitive and innovative structure. The banking sector left behind a difficult year. But despite this fact and the negative environment, Ziraat Participation overcame these difficulties with its strong stance, steadily increasing its share in the sector day after day and achieving tremendous progress in its first 6 months, with its 22 branches opened on the principle of “Growth through sharing”. Fund inflows also began growing as the number of branches increased.

In 2016, Ziraat Participation will have 50 branches in Turkey, thus gaining a presence in regions of the country representing 80% of Turkey’s GDP. Having achieved an asset size of TL 2,177 million at the end of 2015, Ziraat Participation surpassed many banks in this category in a short space of time. Extended loans account for 78% of Ziraat Participation’s assets. Aiming to grow in line with the real sector, Ziraat Participation established credit assessment, allocation and management and risk appetite in a corporate manner.

With the aim of providing effective banking services to customers through every channel, work to deliver services in all the channels including branch and non-branch continued at full pace. Ziraat Participation already had 25 ATM’s at the end of the year. In 2015, the POS allocation was carried out by signing member business agreements.

Ziraat Participation’s equity amounted to TL 665 million at the end of 2015, while the equity had a 31% share in total liabilities and the Capital Adequacy Ratio (CAR) stood at 47%. Despite only being established relatively recently, progress was achieved in ensuring a diversification of resources.

The sum of collected current and participation accounts amounted to a 58% share in total liabilities, with the ratio of current accounts to participation accounts standing at 14% as of the end of 2015. Ziraat Participation had provided TL 164 million in funding from domestic and foreign banks as of the year end.

Ziraat Participation will continue to move forward, serving our country within the framework of the principle of “Growth through sharing” by contributing to the establishment of the new Turkey that has big goals on a regional and global scale, backed by the synergy with the Ziraat Finance Group and the power of the 152 year-old Ziraat brand.

We hope that 2016 will be a year marked by achievements and developments that will enable us to reach our significant objectives.

We owe a debt of gratitude to our shareholders, our customers and our employees, who have offered their full support in this way.

Respectfully,

Board of Directors