Like our country, Ziraat Participation achieved significant success in 2016.
We are delighted and excited to have successfully completed 2016, a year when Ziraat Participation, the first publicly funded participation bank, celebrated the first anniversary of its foundation.

TL 8 billion total assets (at year-end 2016)

Like our country, Ziraat Participation achieved great success in 2016, which was a challenging year due to the geopolitical developments in our region, the volatility in the world economy and the extraordinary developments experienced in our country. Our total assets tripled YoY to TL 8 billion during 2016.

We extended an increasing amount of financial support to the country’s economy.
Ziraat Participation achieved rapid growth in 2016, focusing on the financing of the real sector, in line with its goal of creating value for all stakeholders and society, not just for its customers and shareholders. Its cash financing amounted to TL 5.5 billion in 2016 with growth of 229%, while its non-cash financing reached TL 3.5 billion, marking growth of 778%. The Bank disbursed a total of TL 9 billion in financing support to the real sector. Taking into account the amounts that were matured and closed, the total financial support that we extended to the national economy stood at TL 12 billion.

Ziraat Participation will continue to support the Turkish economy, particularly the real sector, with cash financing that has a 70% share in its balance sheet. In spite of working to a balance sheet strategy focused on financial growth and customers, the Bank’s non-performing loan ratio of 0.2% is well below the sector average.

As of the end of 2016, the total volume of assets in current and participation accounts increased by 349% YoY to reach TL 5.6 billion. Within the framework of increasing and expanding the diversity of resources, funds were provided from domestic and foreign banks and within this scope, our first Murabaha syndication of USD 155 million was successfully completed with the participation of international banks. In addition, we carried out our first Sukuk issuance amounting to TL 100 million through Ziraat Katılım Varlık Kiralama A.Ş., which we established during the year. The issuance was renewed three times on the redemption dates.

TL 9 billion financing support to the real sector (at year-end 2016)

In our first year, we were able to record a profit.
As a result of the services we offer within the framework of sustainability and efficiency with our service understanding that places priority on customer satisfaction, we were able to record a profit in our first year despite the ongoing establishment and growth investments and completed 2016 with a net profit of TL 30.7 million.

A look at Ziraat Participation’s overall customer portfolio shows that most of customers are also working with conventional banks and have begun to actively use participation banking products through Ziraat Participation. This is a reflection of our success in our target of expanding participation banking and reaching out to all segments of society.

In 2016, our first profit-loss partnership project was implemented, with new product development efforts continuing to contribute to the development of participation banks. We provided SMEs with access to affordable financing the use of funds from the World Bank.

70%share of cash financing in the balance sheet (at year-end 2016)

We have further expanded our geographical spread.
We opened 22 new branches in 2016, bringing our customer focused branch network to 44, located in areas which generate 70% of our national income, while further expanding our geographical spread. We expanded our reach by offering applications, which enable access to Ziraat Participation through the Internet and mobile applications. In addition, we provided our customers with the opportunity to reach Ziraat Participation from all Ziraat Bank branches and ATMs within the framework of our correspondence agreement with Ziraat Bank.

As our country’s first public participation bank, we were proud to have rounded off the year 2016 by achieving our target of realizing these important developments in a short space of time.

In our journey to become a leading and respected participation bank, we will continue;

• To provide a contribution to the real sector and the economy within the framework of interest-free finance principles,
• To increase the share of participation banking in the sector as a visionary participation bank aiming to grow together, with the power and synergy we receive from the Ziraat Finance Group,
• To create value for all of our stakeholders with the principle of “Achieving More by Sharing”.

While we move to the future with confident steps, I would like to thank our shareholders, whose support we have always felt, our customers, our business partners and our employees.

Osman ARSLAN
Board Member and General Manager