Ziraat Katılım 2023 Annual Report

Milestones in the History of Ziraat Participation

As the first publicly funded participation bank, the Bank began operations on 29 May 2015, in a grand opening with the participation of President Recep Tayyip Erdoğan.
Ziraat Participation became the first participation bank to receive Participation Banking Activity Ratification Certificate approving compliance of the general framework of our operations with the Principles of Participation Banking.

Ziraat Participation proudly completed its first year, a full of firsts, with a net profit of TL 30.7 million.
The first profit-loss sharing partnership was carried out in different sectors.
The first Sukuk issuance was undertaken by establishing an Asset Leasing company.
The first Murabaha Syndication took place.

Ziraat Participation continued to take firm steps on its way to reach its goals of sustainable profitability and efficiency and recorded a profit of TL 159 million.
Ziraat Participation founded its second subsidiary ZKB Varlık Kiralama A.Ş.
FILIKA (Limited Financing Card) has been offered to customers.
Transition to TFRS 9 has been completed.
A project financing transaction has been performed through “İstisna” product in the participation banking sector.
Ziraat Participation has started the Gold Days.

Ziraat Participation rounded off the year with stable growth and wrote a net profit of TL 323 million.
Ziraat Participation entered a cooperative agreement that represents a first for the banking sector and our country, with the “Joint Investments Model”.
Ziraat Participation became the first participation bank to mediate in the issuance of the Gold Lease Certificate.
The number of branches increased to 80 branches in 41 different cities.
The necessary permits were obtained for the transfer of Ziraat Finansal Kiralama A.Ş. to Ziraat Participation.
In accordance with the agreement made between all public banks including Ziraat Participation, the “free use of a Common ATM” system was implemented with the protocol signed.

Ziraat Participation continued its healthy growth with its effective and efficient balance sheet management and completed the year with a net profit of TL 516.7 million.
Ziraat Participation realized a Murabaha Syndication transaction at an amount of USD 250 million for the third time.
Ziraat Finansal Kiralama A.Ş. was transferred to Ziraat Participation as of 1 March 2019.
Subordinated loans were obtained from T.C. Ziraat Bankası A.Ş. and Turkey Wealth Fund.
Virtual POS product was offered to customers.
“Mobile Financing” option was launched to conduct financing transactions through the Katılım Mobile application.

Ziraat Participation reached an asset size of TL 60.2 billion.
The Sudan Branch, first foreign branch, entered operation.
Work on the new payment system, FAST (Instant and Continuous Transfer of Funds), has been completed. The system allows the Bank’s customers to perform money transfers between their accounts in different banks 24 hours a day, 7 days a week.
With its subsidiaries Ziraat Katılım Varlık Kiralama A.Ş. and ZKB Varlık Kiralama A.Ş., Ziraat Participation realized approximately TL 12.6 billion in lease certificate issuances in TL terms in the local market.

Ziraat Participation’s asset size reached TL 98.3 billion in 2021.
A lease certification issue of TL 300 million was realized through public offering for the first time.
A subordinated loan of TL 500 million was obtained from the main shareholder T.C. Ziraat Bankası A.Ş.
A new product, Eli Bol (Generous) account was offered to customers.
Currency Protected TL Participation Account and Gold Conversion TL Participation Accounts were launched.
Ziraat Participation obtained three separate lease certificate issuance approvals from Capital Market Board at amounts of TL 12 billion, TL 15 billion and TL 1 billion to realize TL-based lease certificate issuances in domestic market with its subsidiaries Ziraat Katılım Varlık Kiralama A.Ş. and ZKB Varlık Kiralama A.Ş.

Asset size of Ziraat Participation increased by 117% and reached TL 213.3 billion.
Paid-in-capital increased to TL 2.65 billion.
The Bank provides services in 55 cities in all regions with 155 domestic branches.
With “Instant Financing” product, customers are given opportunity to finance their purchases made from contracted stores through digital channels easily and rapidly.
Currency Protected TL Participation Account with Conversion to Physical Gold and My Home (Yuvam) account within the scope of Currency Protected account were implemented.
Ziraat Participation, together with its subsidiaries Ziraat Katılım Varlık Kiralama A.Ş. and ZKB Varlık Kiralama A.Ş., obtained four separate lease certificate issuance ceilings, two of them for TL 15 billion, one for TL 1 billion and one for TL 12 billion from Capital Market Board (CMB) to issue lease certificates in TL at domestic market. In this context, a total of TL 16.1 billion of issuances were realized.

Ziraat Participation’s asset base expanded by 80% to reach TL 384.3 billion.
The Bank increased its paid-in capital to TL 10.35 billion.
The Bank provides services through 189 domestic branches in 61 provinces throughout Turkey.
The Start-up SME Insurance, Limit Protection Insurance, Corporate Package Insurance, Individual Assurance Insurance, Personal Accident Insurance, Entrepreneurial Support Insurance, Farmer’s Support Insurance, Farmer Friendly Insurance, Agricultural Finance Life Insurance and State Supported Credit Insurance products have been added to the insurance product range and offered to customers.
The “SME Participation Digital” brand was created to facilitate ERP Solutions, Open Banking and Smart Cash Flow financial transactions.
Ziraat Participation’s share in the participation banking sector reached 17.9% by the end of 2022 and 18.8% by the end of 2023. The Bank aims to increase its share in the sector in 2024.
Ziraat Participation became a financial stakeholder of the New Home Housing Campaign.
Immediately after the devastating earthquakes which struck Kahramanmaraş on 6 February, work was carried out to meet all needs of the Bank’s employees and their families. The situation of Ziraat Participation employees and the branches was closely monitored by keeping in touch with the employees working in the region through Coordination with İSAD.