Part I: Presentation
006 Bank Asya in Brief
007 Vision, Mission,Strategic Objectives 008 Key Highlights (Indicators)
010 Bank Asya’s Market Position in the Sector 012 Bank Asya’s Strategy of Growth
016 Milestones
018 Changes in Capital and Shareholder Structure During the Period 021 Awards
022 Message from the Chairman of the Board of Directors 024 Message from the General Manager (CEO)
030 Macroeconomic Overview and the Banking Sector 038 Bank Asya’s Activities in 2011
052 Corporate Social Responsibility 053 Affiliates and Subsidiaries
055 Compliance Opinion for the Annual Report
Part II: Management Information and Principles of Corporate Governance Practices
058 Board of Directors 060 Statutory Auditors 062 Senior Management 064 Organization Chart 066 Committees
069 Summary Report of the Board of Directors 070 Human Resources
071 Training (Job Training)
072 Transaction Volume of the Risk Group of the Bank, Outstanding Loan and Collected Fund Transactions, and Current Income and Expenses for the Reporting Period 073 (Principals of) Corporate Governance Compliance Report 078 Support Services Benefited by Bank Asya
080 Profit Distribution Policy of Bank Asya
080 Profit Distribution Proposal of Bank Asya for 2011 Profits 081 Considerations Regarding the General Assembly 082 Information on Agenda Items
Part III: Financial Information and Risk Management Assessment
086 Summary Report of the Statutory Auditors
087 Summary of Financial Information for Five Years Including the Reporting Period 088 Financial Condition, Profitability and Solvency Assessment
089 Audit Committee Reviews About the Functioning of the Internal Systems 090 Information on Risk Management Policies Implemented for Each Risk Category 092 International Rating Grades
Part IV: Non-Consolidated Financial Statements and Related Footnotes
095 Independent Auditors’ Report
098 Information on Financial Statements and Footnotes
Part V: Consolidated Financial Statements and Related Footnotes
169 Independent Auditors’ Report
172 Information on Financial Statements and Footnotes
Part VI: Contact Information
Continuing to
have healthy
growth …
Bank Asya, offers interest-free financial system and its associated
advantages to the widest possible audience. By increasing
operational efficiency, Bank Asya continues to support the
real sector. As for production it offers innovative products and
services in retail banking. With a customer satisfaction centered
approach, advanced technology and its long-term investments
abroad, Bank Asya provides service at world-class standards;
Bank Asya is a reputable, reliable and effective participation
bank, which boasts a healthy and steady growth.
A World:
Clean and
In 1996, Bank Asya, Turkey’s most dynamic participation bank, commenced operations under the name “Asya Finans” as the country’s sixth private finance house. As the sector’s newest participation bank, Bank Asya grew rapidly in a short period of time and achieved a strong and respected position in the market.
Turkey’s first participation bank
to go public
Bank Asya is firmly committed to a strategy tailored towards sound and sustainable growth, which it has carefully integrated into its organizational structure. As the first participation bank in Turkey to go public in order to establish a strong and broad capital base, Bank Asya floated 23% of its shares in 2006. As of year-end 2010, 52.88% of the Bank’s capital was publicly held. By the end 2011, the free float rate reached 52.88%. The Bank’s paid-in capital was TRY 900 million as of the end of 2011.
New high-quality products and
services in participation banking
Bank Asya works proactively to expand its product and service line in order to meet the changing needs and expectations of its customers across all its business sectors. As the first participation bank in Turkey to be awarded the ISO 9001 Quality Management System Certification, Bank Asya seeks to strengthen its position within the market by developing new interest-free banking products, with its innovative approach including derivative products. The Bank also undertakes efforts to adapt widely used banking products and services to the interest-free banking system at the highest level of qualityInvest in people, invest in the
future
Bank Asya understands that when it invests in people and technology, it invests in the future. The Bank incorporates advanced technology in order to strengthen its growth momentum and support its dynamic and development-focused workforce. This in turn facilitates a workplace that embrace s the Company’s values.
Advanced technology in banking
Bank Asya has expanded the reach of its delivery network through investments in technological infrastructure and alternative distribution channels. Iin addition to its 200 branches, Bank Asya has been particularly successful in gaining recognition during recent years through the innovative payment system products that it has introduced. After the launch of Europe’s most advanced contactless credit card, AsyaCard DIT, and Turkey’s first prepaid contactless debit card, DIT Pratik, Bank Asya demonstrated once again its leading role in banking technology with DIT Mobile, which allows mobile phones to make contactless transactions, and "Cep-T KGS" products.Creating more sustainable value
Conducting its operations as a good corporate citizen, Bank Asya aligns its strategic objectives with the principle of “creating more sustainable value” for all of the social and economic stakeholders.Increasing brand value alongside
unmatched growth dynamics
Bank Asya is transforming a business model based on supporting the real sector and manufacturing. The Bank integrates the fundamental principles of interest-free banking into an effective paradigm of participation banking through its management competencies, funding practices, risk and quality policies, innovativeness, and unmatched growth dynamics.To this end, the Bank will continue to enhance the brand value that it has established both domestically and internationally.
In 2011, Bank Asya sustained its profitability and growth in line with its performance targets thanks to its solid capital base and healthy balance sheet structure. In 2011, the Bank continued to lead the participation bank market in terms of total assets, loans allocated, non-cash loans, deposits and net profit.
Bank Asya In Brief
Bank Asya’s strategic goals focus on
sustainable profitability, producing
more value for all stakeholders.
Vision, Mission,
Strategic Objectives
Vision
To be a respected, trusted and effective bank
that provides world-class service with the
products it develops.
Mission
To contribute to both shareholder value and the Turkish economy by
developing modern banking services within the framework of
interest-free banking principles and satisfying customer needs and expectations
with a “different solutions for different expectations” approach.
Strategic Objectives
• To be one of the world’s leading interest-free banks.
• To continue to be the participation bank with the highest brand value in Turkey.
• To rank in the forefront of companies where highly qualified professionals would
strive to work.
• To increase market share.
• To be a pioneer in the banking industry with new innovations.
• To be the primary bank of its customers.
• To sustain and increase support of social responsibility projects including social
activities and sports.
Key Financial Highlights (Million TRY) 2010 2011 Change (%) Total Assets 14.513 17.190 18,4 Cash Loans (*) 11.060 13.452 21,6 Deposits 11.167 12.397 11,0 Shareholders’ Equity 1.942 2.137 10,1 Paid-In Capital 900 900 -Non-Cash Loans 9.227 9.349 1,3
Net Profit for the Period 260 216 -16,9
Key Highlights
(*)Financial Lease (Leasing) is included
Bank Asya sustained its upward
momentum in 2011 and achieved
growth of 18% in Total Assets, 22% in
Cash Loans and 11% in Deposits.
18 %
Total Assets (Million TRY)
2007 2008 2009 2010 2011 17.190 14.513 11.609 8.109 6.260
22 %
Cash Loans (Million TRY)2007 2008 2009 2010 2011 13.452 11.060 8.355 6.381 4.610
Branch and Personnel Information (Quantity) 2010 2011 Change (%)
Number of Branches 175 200 14,3
Key Financial Ratios (%) 2010 2011
Cash Loans/Total Assets (*) 76,69 78,63
Deposits / Total Assets 76,94 72,12
Cash Loans/Deposits (*)(**) 101,77 110,97
Capital Adequacy Ratio 13,33 13,31
(*)Non-performing loans were added to Cash Loans and Total Assets in gross terms. (**)Loan-To-Deposit Ratio is calculated by dividing Cash Loans by Deposits.
Bank Asya’s Composition of Assets (%) 2010 2011
Liquid Assets 18 16
Cash Loans 76 78
Fixed Assets 3 3
Other 3 3
Bank Asya’s Composition of Liabilites (%) 2010 2011
Deposits 77 72
Loans Received 4 9
Other 6 7
Total Shareholders' Equity 13 12
Bank Asya Income Distribution (%) 2010 2011
Net Profit Income 58 60
Net Commissions 24 24 Other Income 18 16
11%
Deposits (Million TRY) 2007 2008 2009 2010 2011 12.397 11.167 9.137 5.843 4.69810%
Total Shareholders' Equity (Million TRY)2007 2008 2009 2010 2011 2.137 1.942 1.708 1.404 854
Bank Asya’s
Market Position
Bank Asya pioneered as a participation
bank in Turkey in 2011 through its
competitiveness and innovative strategy.
Banking Sector Deposit Money Banks Participation
Banks Bank Asya
Annual Growth Rates
(2010-2011)
Total Assets (%) 21 18 30 20 Loans (%) 30 22 28 30 Deposits- Funds (%) 13 11 19 12 Shareholders' Equity (%) 8 10 13 7 Non-Cash Loans (%) 34 1 22 38 Number of Employees (%) 2 2 9 6 Number of Branches (%) 4 14 13 4 Net Profit (%) -10 -17 6 -11One step ahead of the sector
With high competitive power
Comparison of Bank Asya with
Other Participation banks
0,68
0,32
Loans (%) Deposits- Funds (%) 0,68 0,32 Total Assets (%) 0,69 0,31 Shareholders' Equity (%) 0,65 0,35Net Profit / Loss (%)
0,73 0,27 Number of Branches (%) 0,71 0,29 Number of Employees (%) 0,67 0,33
In 2011, Bank Asya
continued its leadering
among participation
banks in the total assets,
disbursed loans, non-cash
loans and deposits.
Bank Asya’s
Growth Strategy
Identifying strategic priorities and acting
according to the principles of sustainable
growth Bank Asya has continued to add
value to the economy and society in 2011.
Bank Asya forms its strategies around the overarching goal of being one of the most important brands in the participation banking business line not only in Turkey but also in the entire the world. Conducting its operations in line with the principles of sustainable growth while pursuing this primary objective, the Bank focuses on creating more value not just for the economy but also for the society as a whole.
Bank Asya is commited to being a model bank along all the three axes of quality, productivity and profitability. The Bank invests both in technology and in people in order to make its proactive, customer-oriented service philosophy a reality in all aspects. Bank Asya is a transparent institution that continuously improves its business processes and systems and that embodies the very best of corporate governance principles and practices.
Effective Resource Management
• Solid capital base • Rapid increase in deposits
• Longer average terms on deposits and high liquidity
• High profitability • Loans from abroad
Effective Loan and Risk
Management
• Deeper customer relationships • More diversified loan portfolio • Increase in retail loans and SME loans
Effective Product and Brand
Management
• Development of innovative products • Increase in brand awareness (sponsorship,
effective promotion, advertising)
• Capital adequacy ratio 13,31% (tier 1) • 11% increase. in deposits
• 20% liquidity ratio • 10,1% return on equity
• 134% increase in loans from abroad
• 22%. growth in cash loans • Ranked 13th. in cash loans • 75% increase in retail loans
• AsyaCard DIT: Market leader in contactless cards • 20% increase in credit card turnover
• Ranked 11th. in the sector with 1.9 million credit cards
• High profile with Bank Asya.1st League (football league)
Bank Asya’s Competitive Advantages
• Leader among participation banks in total assets, deposits, loans, and profitability
• Dynamic, growing organization • Well-qualified, young staff • Customers' confidence in the Bank • Experienced in crisis management • Bank employees' sense of ownership • Strong team spirit throughout the Bank
• Speed at technology implementation and priority in innovation
Bank Asya’s Strategic Orientation (2011-2015)
Trustworthiness, stable growth, risk management, business continuity and productivity are Bank Asya’s top strategic priorities. Having clearly and explicitly defined its objectives in line with its corporate vision, Bank Asya groups its strategies under four main headings in order to achieve effectively its objectives:
• Financial
• Operational excellence • Stakeholders
• Personnel & progression
In the same way, Bank Asya has laid out a five-year roadmap whose course is shaped by these strategies
Financial
• Sustainable growth and profitability • Strengthening the financial structure • Targets about subsidiaries and affiliates• Increasing the use of technology • Improving the efficiency of business processes • Increasing the effectiveness of risk management practice • Increasing the knowledge levels of employees • Establishing effective communications and enhancing skills • Disseminating
corporate strategy and performanceoriented management philosophy • Maximizing customer satisfaction • Offering diversified solutions capable of addressing different customer expectations • Ensuring sustainable divident payment to shareholders
Operational
by evaluating deposits into profitable
investments to be used in the real economy.
Investing
in Effort
1996
Bank Asya commences operations on 24 October. Began its operations with an initial capital of TRY 2 million.
1997
The number of branches reaches 15.
1998
The number of branches reaches 16 Asya Finans launches the Asya Finans credit card.
1999
Asya Finans is subjected to the Banking Law. The company’s paid-in capital is increased to TRY 10 million.
2000
The number of branches reaches 25. The Asya Finans online branch goes into service
2001
The company’s paid-in capital is increased to TRY 20 million.
Bank Asya
Milestones
Achieving many firsts in the past
15 years, Bank Asya moves towards
becoming a world bank that thinks both
locally and globally.
2002
The number of branches reaches 28. The Company’s paid-in capital is increased to TRY 40 million. The ASYA24 ATM network goes live for customer use.
2003
Asya Finans becomes a member of the VISA system. The number of branches reaches 43. The company’s paid-in capital is increased to TRY 60 million. Started a partnership with Isik Sigorta A.S.
2004
The number of branches reaches 62. Alo Asya telephone banking services are launched. The company’s paid-in capital is increased to TRY 120 million
2005
The number of branches reaches 72. The company’s paid-in capital is increased to TRY 240 million Asya Finans is reorganized as a participation bank and its name is changed to “Bank Asya.”
2006
The number of branches reaches 92. The company’s paid-in capital is increased to TRY 300 million. In an initial public offering, 23% of Bank Asya’s shares are floated; the company’s stock begins trading on the Istanbul Stock Exchange under the ASYAB ticker symbol.
2007
The number of branches reaches 118. Bank Asya stock is added to the ISE-30 Index as of January 2007
2008
Bank Asya becomes the name sponsor of the Turkish Football Federation 1st League. Contactless technology products AsyaCard DIT and DIT Pratik are made available for the use of the Bank’s customers.
2009
The number of branches reaches 158. Bank Asya becomes a shareholder in Senegal-based Tamweel Africa Holding SA. AsyaCard DIT receives the “Best Cash Displacement Initiative” and the “Best New Credit Card Product Launch” awards. Bank Asya becomes a partner in Tuna GYO A.Ş.
2010
The number of branches reaches 175. DIT Pratik is named “Best Mastercard Prepaid Product in Turkey.” Bank Asya joins the MoneyGram service network. AsyaAsist, Çobanyıldızı and DIT Mobil were launched for customer use.
2011
Bank Asya received the Business Continuity Management Systems Certificate from the British Standards Instituition Bank Asya has become the first Turkish organization to receive this certificate. Bank Asya has been selected “The Best Commercial Bank of 2011 in Turkey” Award by World Finance. Paksit and DIT Pratik have been released for customer usage. Bank Asya won "The Best Call Center in Turkey" Award in the category of 100-499 seat-capacity call centers. Bank Asya has proved its quality receiving Customer Satisfaction
Management (ISO 10002) and Call Center Certificate (EN 15838) at the same time. Bank Asya has become the first bank in Europe to have these two certificates at the same time. The number of branches reaches 200. Started a partnership with Bank Asya Emeklilik A.Ş.
With the vision of "to
become the leading
bank in participation
banking in Turkey",
Bank Asya achieved its
target since 2006, the
tenth anniversary of its
foundation date.
Although it is the newest
participation bank in
Turkey, Bank Asya has the
most competitive products
in the market, and, with
200 branches and 492
ATMs, takes its place as a
medium-sized bank in the
banking sector.
Changes in Capital and
Shareholder Structure
During the Reporting Period
Bank Asya’s shareholder structure as of year-end 2010 and year-end 2011 appears in the table below
31.12.2010 % 31.12.2011 %
Group A (preference shares) 360.000.000 40,00 360.000.000 40,00
Group B (not traded on ISE) 67.124.038 7,46 64.068.038 7,12
Group B (traded on ISE) 472.875.962 52,54 475.931.962 52,88
Total 900.000.000 100 900.000.000 100
Bank Asya has a broad-based, multi-shareholder, domestically-financed capital structure. As of yearend 2011, the Company had 236 partners who were direct owners of preference shares, excluding the publicly-held portion of the share capital.
Shareholding interests held by the Chairman and members of the board of Directors, CEO and Executive
Vice Presidents
Statements concerning the shareholding interests held by the Chairman and members of the Board of Directors, CEO and Executive Vice Presidents as shown in the Bank’s Shareholders’ Register as of 31 December 2011 are presented below.
Ownership Title Name / Surname Areas of Resposibility In the Bank%
Chairman Behçet Akyar Chairman 0,0003
Board Members Salih Sarıgül (1) Deputy chairman of the board 0,2056
Ahmet Çelik (1) Board Member 0,4800
Tacettin Negiş (2) (3) Board Member
-İsmail Erol İşbilen (3) Board member and Member of Statutory Auditors -Hülagü Özcan (3) Board member and Member of Statutory Auditors
-CEO Abdullah Çelik Board Member And CEO
-Executive Vice President Corporate/Commercial Loans, Small Banking, Top Management Office Headquarters, Business and Product development Coordination (4)
-Ali Tuğlu Information Technologies
-Ali Fuat Taşkesenlioğlu (5) Commercial Credit Allocation II, Corporate Credit
Allocation
-Erdal Erdem (5) Credit and Risk Monitoring, Construction and Real Estate
Fahrettin Soylu Banking Operations
-Ercüment Güler
Retail Sales Management, Retail Product Management, Card Payment Systems Marketing Management, Administrative Affairs, Alternative Distribution Channels, Resource Development
-Ahmet Beyaz Budgeting & Reporting, Accounting & Bank Affiliates, Purchasing, Corporate Communications
-Zafer Ertan Law, Credit and Risk Monitoring
-Ahmet Akar Corporate/Consumer Credit Allocation I, Project Financing -Feyzullah Eğriboyun Treasury, Financial Institutions, Investor Relations, Human Resources and Education 0,0004
Statutory Auditors Ali Akbulut (6) Auditor 0,0002
Atif Bilgin Auditor 0,2411
İrfan Hacıosmanoğlu Auditor 0,7093
(1) Board Members Salih Sarıgül and Ahmet Çelik resigned from their duties as of 26. Jan. 2012; they have been replaced by Ali Çelik and Faruk İlk (2) Board Members Tacettin Negis resigned from his post as of 02. Feb. 2012, he was replaced by Mustafa Talat Katırcıoğlu
(3) Not shown because the shareholding interest is less than 1/100,000. (4) Related departments is operatively connected to the General Manager.
(5) Executive Vice Presidents Ali Fuat Taşkesenlioğlu and Erdal Erdem resigned from their duties as of 06. Jan. 2012 (6) Bank's Auditor Ali Akbulut resigned from his post as of 23. Feb. 2012, his seat was replaced by Mehmet Gozutok.
Names and Shareholding Interests of Shareholders Who Own Qualified Shares
Shareholders who were registered in Bank Asya’s Shareholders’ Register as of 31 December 2011 and whose ownership of Group A preference shares entitled them to designate candidates to fill seats on the Board of Directors and Audit Committee as per Articles 32 and 49 of the Articles of Association are presented below.
No Name / Surname Group A share in the Bank (%)
1 Ali̇ Akbulut 12,70
2 Abdulkadi̇r Konukoğlu 5,58
3 Hasan Sayın 4,85
4 Tacetti̇n Negiş 4,31
5 Fi̇kri̇ Akbulut 4,06
6 Osman Can Pehli̇van 4,00
7 İbrahi̇m Sayın 3,52
8 Fatma Emi̇ne Berksan 2,50
9 Muammer İhsan Kalkavan 2,36
10 A. Selçuk Berksan 1,82
11 Mehmet Si̇nan Berksan 1,67
12 Aydan Aydın Sağlık 1,65
13 Fehi̇m Arıcı 1,55
14 Yavuz Eroğlu 1,45
15 Bülent Berksan 1,43
16 Mehmet Berksan 1,43
17 Ahmet Levent Berksan 1,14
18 Abdurrahman Kopuz 1,10
19 Hakan Cem Akbulut 1,00
Other (286 people) 37,42
Pending BRSA Approval 4,46
Changes in Capital and
Shareholder Structure During
the Reporting Period
Information on Titles and Shares of Shareholders Holding
Preferred Shares
No Name / Surname Group A share in the Bank(%)
1 Ortadoğu Tekstil Tic. San. A.Ş. 10,9924
2 Forum İnşaat Dekorasyon Turizm San. ve Tic. A.Ş. 9,6299
3 BJ Tekstil Tic. ve San. A.Ş. 5,0000
4 Birim Birleşik İnşaatçılık Mümessillik San. ve Tic. A.Ş. 4,9398
5 Serra Turizm Ltd. Şti. 4,1667
6 Negiş Giyim İmalat ve İhracat A.Ş. 3,6506
7 Sürat Basım Yayın Reklamcılık ve Eğitim Araçları San. Tic. A.Ş. 1,8008 8 Galaksi Avrasya Sanayi Ürünleri Dış Tic. A.Ş. 0,5000
9 Asya Katılım Bankası A.Ş. 0,4167
10 Teksen Tekstil End. A.Ş. 0,2676
11 Linateks Tekstil İthalat İhracat San. ve Tic. Ltd. Şti. 0,2500
12 Aydınlı Hazır Giyim San. ve Tic. A.Ş. 0,2423
13 Koçkaya Motorlu Araçlar San. ve Tic. A.Ş. 0,0656 14 Karakaya Yedek Parça ve Otomotiv San. Tic. Ltd. Şti. 0,0449
15 Meltem Turizm İnş. Tic. A.Ş. 0,0210
Changes Made in the Articles of Association
Awards
The Best Commercial Bank of
2011 in Turkey – World Finance
Bank Asya has been selected as the Best Commercial Bank of 2011 in Turkey by World Finance, one of the most respected monthly business magazines that awards successful companies in finance and business every year.STP Excellence Award- Citibank
The technological equipment and effectiveness of service of Bank Asya is confirmed by one of the world's leading banks. In 2011, Bank Asya awarded by CITIBANK with the STP Excellence Award.BSI Business Continuity
Management Certificate
Bank Asya became the first Turkish organization to receive the Business Continuity Certificate from the British Standards Instituition.Best Call Center in Turkey
In October,2011, Bank Asya received “The Best Call Center of Turkey Award” among the call centers with a capacity of 100-499 seats in Istanbul Call Center Awards held by the IMI Conferences.Call Center Certificate (EN
15838)
In the fields of Customer Satisfaction, incoming and outgoing calls, performance management, recruitment, careers and the process of education, Bank Asya received EN 15838 Customer Contact Center Quality Management Certificate, an international standard for call centers with special conditions.
Customer Satisfaction
Management Certificate
(ISO 10002)
Timely and adequately responding to customer needs and expectations, Bank Asya received the Customer Satisfaction Management ISO 10002.
Annual Report of National Banks
Silver Award - ARC Awards
With the Annual Report prepared in 2010, Bank Asya won the second (silver) prize in International ARC (Annual Report Competition) in the category of the National Bank Annual Report issued in local languages.In year 2011, Bank Asya had outstanding
success, exemplified by the awards and
certificates received during the year.
Message from the
Chairman
The leading participation
bank in Turkey
Dear Valued Shareholders
Decrease of the effects of the global crisis resulted
in an optimistic beginning to the year 2011 in the
markets but the developed countries have failed to
meet the expected performance during the year..
However, developing countries including Turkey
have continued to create value through their well
established economies.
"In line with new
strategies and plans of
growth, Bank Asya aims
to increase the number of
branches to 300, and the
number of credit cards to
3 million as well."
With a 9% growth in 2010, Turkish economy recovered the majority of the effects of the global crisis and sustained its rapid growth trend during the year 2011. Despite the recession in world economies due to the recession in developed countries and debt crisis in European countrieis, Turkey has grown by over 8% during year 2011and continued to be distinguished with this positive developments.
Although the precauitons taken by the Central Bank of Turkey in order to maintain financial stability and to reduce the current account deficit resulted in a decrease in the growthrate, the growth is expected to continue.
The European Debt Crisis and recession expectations have affected the profitability of the companies listed in ISE negatively and resulted in loss of market values of these companies. Therefore, the ISE 100 index value decreased by 21% during year 2011.
The precauitons taken by regulatory agenciesreduced the profit margins in Turkish banking sectors. However, the sector has continued to increase its asset size, thanks to powerful structure of the sector. Comparing the performance of the participation banks to thetotal of the banking sector, participation banks increased their share in total assets and funds collected.
As is the case in the rest of the world, participation banking in Turkey continues to develop and the number of new products, conforming with the interest-free financing standards, increases day by day. In year 2011 during which the bank profits declined, Bank Asya sustained the profitabilty thorugh orienting its strategy to use itscapital more effectively, focusing on collecting participation funds and lengding activitiesas its mainbusiness model. With the mindset of developing new strategies, Bank Asya has underwent a year of high performance.
Despite its short history of 15 years, Bank Asya has been well known by its high competitive power and innovative aspects, recognized with its new prodcuts and servies in interest free banking area and therefore, it has strengthened its position as the leading participation bank in Turkey. Bank Asya aims toincrease the number of the branches to 300, and credit cards to 3 million as well until 2015 in accordance with its new strategies andgrowth plans aiming to provide faster and higher quality services ineverywhere in Turkey with its expanding network.
Bank Asya will continue its organic growth during year 2012 in accordance with this goal, will increase its investments in foreign countries and will continue to operate with its vision to be a global model bank.
I would like to thank to the diligent Bank Asya staff who have contributed highto the Bank’s progress through their dedicated efforts with the team spirit and a “we” sense.
Also, I would like to thank to the former members of the Board of Directors and Audit Committee, who resigned at the beginning of 2012 after serving for many years in various positions in Management and Supervisory Boards of the Bank. Finally, I would like express my gratitude to our solution partners who had great contribution to Bank Asya, to our valued shareholders who have supported our management and to our customers who always sustain their loyalty to the Bank. I firmly believe that, we will provide Bank Asya toachieve many successful periods all together.
Behçet Akyar
Chairman of the Board ofMessage from the CEO
Time for expansion abroad…
Dear Shareholders,
We have passed a year experiencing a
differentphase of the global economic crisis.
The global economic crisis which emerged mainly
in the housing loans and banking sector in 2008
turned into apublic finance crisis through increasing
public debt. And in year 2011, we have faced
political authorities who failed to demonstrate a
common will to overcome the crisis.
Bank Asya continued to
grow in 2011, increasing
total assets by 18% to TRY
17,2 billion. Therefore,
Bank Asya has maintained
its position as the biggest
participation bank of the
past 6 years.
Although structural changes are not expected. Until the elections in USA in November 2012, FED announced that interest rates will not beincreased until the year 2014 and monetary expansion will continue if required.
On the other hand, the economic outlook has become more unpredictable in Europe. As political authority had diffculty in demostrating stability in managing public finance, public debt become higher. Today even if the governments demonstrate agreater stability, there is a significant doubt on the settlement of the public debt due to the difficulties in sustaining a sufficient growth.
Turkey, started to year 2011 with a strong credit demand, thank to the rapid growth based on private sector investments. Lower Government borrowing requirement resulted in a lower investment in public sector bonds and the banking sector funded private sector more.
Hence, the loans as 59% of national income in 2010, increased to 67%of national income in in 2011. These circumstances have led a decrease in capital adequacy ratio from 19% to 16.5%.
Additionally, the implementation of the monetary and banking policies to control the foreign risk sand current account deficit have lowered the sector's profitability through increasing the costs reduced return on equity ratio to 15,5% from 20%. The combination of inflation, high interest rates and devaluation of TRY increased the cost offinancing. Also, due to the impact of the global uncertainty, the banking sector experienced an increase in cost of foreign borrowing.
Despite the negative outlook summarised above, Bank Asya continued to grow in 2011, increasing total assets by 18% to TRY 17,2 billion. During the past 6 years, the Bank has maintained its position as the biggest participation bank. During this period, Bank Asya has given financial support of TRY 22,8 billion to the real economy through lending activities. With its profitable and consistent growth strategy, Bank Asya's net profit after tax was TRY 216 million by the end of 2011.
Since March 2011 as the date of our assignment, in order to use the Bank's capital more efficiently new strategies and policies have been implemented rapidly. In this respect, spread of the credit riskto the base has been targeted and the proportion of the Individual and SME loans in the total loan porftolio has been increased.
Individual loans have reached TRY 1.630 million with an increase by 75%
andasignificant increase has been achieved in SME loans. As a result, a diversified loan portfolio has been created providing the opportunity to serve much more customers.
The average maturity of deposits, which is a major problem ofthe Turkish Banking Sector, was 64 days as of September 2011 in the sector. On the other hand, Bank Asya has extended the maturities of the funding succesfully as one of its main strategiesand increasedthe average maturity of the fundscollected to 132 days. As a resultof the innovative efforts to in order to diversify the financingstructure which is one of the main problems of the participation banks, fundings from abroad increased by approximately134% and reached to TRY 1.458 million through the use of new methods of financing. In addition, the Bank completed the required steps for the first time issueance of Sukuk. As per existence of favorable conditions, Sukuk issuance amounting to USD 300 million is projected within the year 2012.
Message from the CEO
Bank Asya won awards for many innovative products developed, especially for DIT card and continued to lead the sector with the use of contactless technology, trough the transportation and campus projects invarious cities. With in this context, Karamanas transportation project and and Gediz, Zirve, Suleiman Shah and and Duzce University as campus projects are added to the projects of Bank Asya with in the current year. With a total number of 1.900.000 credit cards, Bank Asya has became one of the majörplayers players in the sector.
Continuing contactless technology investments in 2011, Bank Asya has launched “DIT Mobil”which converts the cellular phone into a contactless payment instrument regardless of GSM operator and launched “Cep-T KGS” in cooperation with Turkcell.
One of our major investments in the field of technology are implementation of the CRM applications. These applications will strengthen our understanding of customer-oriented service, will offer better services to our customers, and contribute to the Bank's profitability and efficiency.
Despite the recent economic conjuncture, Bank Asya continued its organic growth with 25 new branches, raising the total number of branches to 200. With more than 500 ATMs in total and with the efforts for serving to a larger customer base, Bank Asya increased the number of individual customers by 16% and reached a total of 3.3 million customers.
New gold-based products have been served in order to meet the customer demands especially for gold emerged parallel to the increase in commodity prices and to invest our customers’ savings. New products for the trade of scrap gold and gold in grams have been designed and implemented. Studies on gold based participation accounts have reached to the final stage. As a result of those efforts, gold accounts increased by 470% reaching 10 tonnes of gold reserves.
Retail loans increased by 75% and
reached to TRY 1.630 million.
75%
A year, structure of fast and
quality service to the customers
Our Bank’s financial support to the real economy
through lending activities has been TRY 22.8
Billion through within the current year.
On the other hand, in accodance with our new strategies and in order to be closer to our customers and to provide faster and higher quality services, we have increased the number of our regional offices from 2 to 9 and we have increased our support to our customers in terms of organizational structure.
In 2011, our Bank strengthened its outstanding success with many awards and certificates.
One of the most respectful economic Magazines World Finance selected Bank Asya as "The Best Commercial Bank of 2011" and Citibank awarded Bank Asya with the STP Excellence Award, which measures efficiency of business flows. Bank Asya became the first Turkish organization to receive the Business Continuity Certificate from the British Standards Instituition. Bank Asya received “The Best Call Center of Turkey Award” and "Customer Satisfaction Management ISO 10002". Bank Asya has become the first bank in Europe to be awarded these two certificates at the same time.
Bank Asya orientsabroad in order to operateinterest-free banking activities not only within the country but also in international arena. In 2009, Bank Asya initiated the process of overseas expansion in Africa with Tamweel Holding. and will continue in the next periods.
Bank Asya will expand its activities in Africa, and will start its interest-free banking operations in Northern Iraq through opening a branch in Erbil in the near future. As being the first bank obtaining the approval fort he application for a
representative office in India, Bank Asya will start its operations in India in the near future.
With all these features, Bank Asya has become one of the most attractive banks for foreign investorsand one of the banks with the highest rate of public quotation in Turkey.
Bank Asya not only present services in banking area in the country, but also feels responsiblity for the improvement of the social community'srelations with the environment, art and sport.
For this purpose, Bank Asya contributes various sponsorship and social responsibility projects. Bank Asya supports worldwide
organizations such as International Turkish Olympics and TUSKON's international meetings, and also sustains its support to The First League of football since year 2008.
I would like to thank to my colleagues who contributed to the successful work of Bank Asya and provided a sense of belonging. I also want to thank to our shareholders who always supportour managementand to our customers who accept Bank Asya as their own bank and toall stakeholders who played an important role in the success of Bank Asya.
Abdullah Çelik
Board Member and CEOEfficient use of capital and a credit
portfolio spread to the base
Asya acts with transparency, one of the
foundational values of the Bank
Clear and
Transparent
Macroeconomic
Overview and
Banking Sector
Altough there was a positive start to the year
of 2011, the global economy could not achieve
expected stabilization due in part to U.S’s
fluctuated employment and growth rate and debt
crisis experienced particularly in the Eurozone
As a result of diminishing effects of global crisis in 2008, and encouraging forecasts about recovery in housing market and in growth rates in the U.S, performing positive start to the year 2011, the global economy could not achieve the expected
stabilization due in part to U.S’s slightly fluctuated employment and growth rates and debt crisis experienced particularly in the Eurozone
Besides, disagreements during the budget planning in U.S, led to postponement in rise of the debt ceiling, and resulted in a decline in long term-debt note of the U.S from AAA+ to AA+ as decided by S&P The debt crisis in the Eurozone, began in Greece during the first quarter of 2010, and continued to spread in 2011 with the addition of Italy and Spain. During this period, the CDS (Credit Default Swap) spreads, which are an indicator of riskiness soverign bonds of countries that were impacted by the debt crisis rose continuously and led to a signnificant increase in the borrowing cost of Eurozone
Greece’s nearing bankruptcy, Germany’s insistence to compensate the entire recovery cost of Greece through tax incomes from the public, and through the banks which played role in borrowing actively, and the lack of a considerable plan by European leaders during this crisis, manipulated financial markets to lose confidence in Europe, inevitably leading to an increase of uncertainity in the economy. Increasing rate of doubts about
sustainability of the European Union, also affected borrowing rate of the countries adversely, Italy and Spain werereported to have the highest levels of debt in the financial markets.
The EUR/USD exchange rate, which was at 1,44 during the first two quarters of 2011, slid below 1,29 as of year-end 2011 due in part to the debt crisis. Compared to the year 2010, after implementing austerity policy, especially in the Eurozone, the global economy set forth to monitorize lower growth rate as of year-end 2011
The EUR/USD exchange rate, which
stood at 1,44 at the first two quarter
of 2011, slid below 1,29 as of year-end
2011 due in part to the debt crisis
1,29
GDP Growth Rate 6,6 4,3 2,2 6,4 4,5 2,6Developed Countrie Developing Contries World
6 3 0,6 2,7 -0,5 -3,4 7,3 5 3 2008 2009 2010 2011 (T) 2012 (T) 8 6 4 2 0 -2 -4
International Developments
Developing Countries
are on Path
Espcially in the latter half of the year, the U.S economy measured higher records and data over forecasted scenario, which was one of the most important
development in the year 2011. Country CDS Spreads While S&P 500 Index confined the year with a 0,6% increase, economy registered a decline of -15% in Germany Dax, -17% in Brazil Bovespa, -21% in China Shanghai Comp. and -24% in ISE 100 index. The debt crisis in the Eurozone, inflation rates and a slump in the growth rates in Asia shifted the global capital flow direction to the U.S. On the other side, sustainable policies implemented by the FED, and the trustworthy and appreciated structure of U.S institutions provoked the U.S economy to decouple from other countries. Debates about this favorable decoupling, and the continual uncertainity throughout the year 2011, provided a rise in the price of gold stocks considered the safest haven, alongside U.S stocks and consent stocks. Despite an impressive beginnig, the commodity market ended with a fall as of year-end 2011. After record highs in purchases by funds that chase high returns, the commodity prices began to drop caused by decline in the long term portfolios of speculators and the slowing rate of recovery in the U.S and forecasts for global demand deficit due to the debt crisis in the Eurozone.
The price of copper measured with a fall in response to the reduction in Chinese import volumes, whereas cotton and wheat prices started to decrase on account of increase in supply in the agricultural market, though were increasing levels during the beginning of the year.
Perceived as a safe haven, gold prices reached USD 1,900 per troy ounce in August 2011, but began to decline during the last quarter of the year. There was a rise in the positioning margins of forward gold sales in addition to the appreciation of the US dolar.
Gold finished the year of 2011 at USD 1,550 with a 13% increase. Oil prices started the year at the level of USD 90,00 per gallon and registered at USD 108,00 as of year end 2011 after challenging period which contracted by the Arabian Spring, developments in Europe and crucial conflicts between Iran and the West.
Gold and Oil
0 20 40 60 80 100 120 140 1.000 01.11 03.11 05.11 07.11 09.11 10.11 1.100 1.200 1.300 1.400 1.500 1.600 1.700 1.800 1.900 2.000 01.10 03.10 05.10 07.10 09.10 10.10
Gold Oil (right axis)
Country CDS Spreads 02.09 05.09 08.09 11.09 02.10 05.05 08.10 11.10 02.11 05.11 08.11 11.11 0 2.000 4.000 6.000 8.000 10.000 12.000 Turkey Greece Spain Portugal Italy
With a growth rate of 9% in 2010, the Turkish economy left behind the negative effects of its past crisis, and also continued its rapid growth path through the year 2011. Besides measured recession, particularly in developed countries, and in contrast with slowing global economy resulting from debt crisis experienced in European countries, Turkey’s economy maintained to decouple favourably by its respective growth rate at 12%, 8,8%, 8,2% in the first three quarters of the 2011. In order to protect stability in financial markets and to decrease budget deficit, the Central Bank of Turkey implemented monetary and fiscal policies especially in the last period of the year. These policies caused growth rates to decelerate, and increased expectations of lose its momentum for upcoming quarter. Looking at the structure of the growth rate, increases in household consumption, which contributed substantially to the growth rate were at highs throughout the year. Growing by 12,2% in the first quarter of 2011, settled households increased their consumption by 8,8% and 7% increase in the second quarter and third quarters respectively.
After a rise of 13,1% in 2010, industrial production maintained its rapid growth at begininnig of the year but lost some of that momentum after the second quarter of the year. As a consequence, average growth rate of industrial production stood at 9,4% during the first ten months of 2011.
Obtaining sustainable fluctuations throughout the year, the manufacturing industry capacity utilization rate, was revised from a recorded level of 77% on October 2011 to 75,5% as of year-end 2011. On the other hand, foreign trade indicators figured out export volume as USD 122,5 billion. A 20% increase during the January-November period, while import volume reached to USD 220,2 billion a 33,5% increase.
Imports volume registered at high levels in response to higher domestic demand and a rise in commodity prices while exports fluctuated within a limited range due to drop in foreign demand. As a result of the increasing trade deficit, the current balance of transactions registered USD 65,1 billion at the end of first ten months of 2011. After declining sharply in 2010, thanks to the impressive growth rate of the economy, the unemployment rate continued to fall and reached to the lowest level of recent years.
Domestic Developments
Macroeconomic Overview and
Banking Sector
Industrial Production and Capacity Utilization (%)
71 72 73 74 75 76 77 78 0 01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11 12.11 5 10 15 20
Capacity utilization Rate Seasonally and Calendar Adjusted Industrial Production (Annual Base)
Foreign Trade and Cuurent Deficit (USD Million)
0 2.000 4.000 6.000 8.000 10.000 12.000 5.000 0 10.000 15.000 20.000 25.000 01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11
The unumployment rate fell to 8,8% in October, down from 11,9% in January 2011, while the non-farm unemployment rate fell from 14,7% to 11,3% in the same period. The number of employed individuals rose to 24,7 million up from 22,5 million while the number of unemployed fell from 3 million to 2,4 million. Compared to CPI at 6,40% and PPI at 8,87% in 2010, CPI rose up to 10,45% and PPI stood at 13,33% as or year-end 2011.
As a consequence of the overpowering effects of the finalization tax regulations which began to be implemented in 2010, the inflation rate tended to decline at the first quarter of 2011. In contrast to decrease in the first quarter of the year due to fall in food prices, the inflation rate started to move up again as a result of a rise in food prices in the second quarter of the year. Consequently, inflation rate maintained to incraese in the second half of the year in response to depreciation of Turkish liras caused by a drop in global risk appetite.
Developments in the exchange rate were influential on basic commodity prices, while service prices kept its steady position during the year. Despite a measured decrease in international commodity prices, producer prices tended upwards especially due to significant effects of the exchange rate. Despite losing some of its momentum towards the end of year, higher domestic demand throughout the year played an important role on the inflation rate which higher than anticipated.
Sustaining a rapid growth rate in 2011, in
contrast to the slowing global economy, the
Turkish economy maintained to
favourable growth.
GDP Growth Rate (%) (in constant prices)
-4,9 9 12 8,8 8,2 2009 2010 2011/1 2011/2 2011/3
Central Bank of Turkey Interest Rate
0 2 4 6 8 10 12 14 01.10 02.10 03.10 04.10 05.10 06.10 07.10 08.10 09.10 10.10 11.10 12.10 01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11 12.11
Borrowing Lending Weekly Repo
Unemployment (%) 01.110 2.11 03.110 4.110 5.11 06.110 7.110 8.11 09.11 8 9 10 11 12 13 14
15 Unemployment Non-farmed Unemployment
Inflation 0 4 8 12 16 20 01.110 2.11 03.11 04.110 5.11 06.110 7.11 08.11 09.111 0.11 11.11
As a part of its monetary policy and to prevent the economy from getting overheated relative to the deepened debt crisis in European countries in 2010 and worsening perceptions for global risk apetite as of August 2011, the Central Bank of Turkey (CBT) expanded the interest gap downwards to decrease short term capital flow while managing obligatory provisions actively.
With financial stability as its primary objective, the CBT withdrew capital from markets by increasing the required reserve ratio, to limit decoupling between foreign demand and domestic demand while managing weekly repo to overcome squeezing liqudity in the markets.
In this period, as result of regulating foreign exchange purchasing tenders, the CBT strengthened its foreign exchange reserves and provided services to satisfy the needs for the Turkish lira caused by “hot money” flows.
As developing countries registered capital outflows in response to deteriorated global economies and shrinking global risk apetite, the Central Bank of Turkey focused to limit domestic demand from sloping downward by a decline in indicator interest rate.
Meanwhile, to overcome the negative effects of squeezing liquidity, the CBT declared a decrease in the required reserve ratio. On October, by increasing the borrowing. Interest rate, CBT expanded the interest gap upwards again to limit the inflation rate’s rising trend which was especially caused by depreciation of Turkish liras. ISE-100 45,000 50,000 55,000 60,000 65,000 70,000 75,000 01.10 02.10 03.10 04.10 05.10 06.10 07.10 08.10 09.10 10.10 11.10 12.10 01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11 12.11
Macroeconomic Overview and
Banking Sector
Exchange Rate 1,40 1,40 1,40 1,40 01.11 02.11 03.11 04.11 05.110 6.11 07.11 08.110 9.11 10.111 1.11 12.11 DOLLAR/TRYPerforming impressively throughout the year,
participation banks increased their market
share in total assets and deposits
Within 2011, ISE 100 index recorded at the highest 70,335 and at the lowest 48,600 after starting the year at the level of 66,004. With a 21% decrease during whole year, Index completed 2011 at 51,267. Especially in the second half of 2011, as one of examples ISE 100 Index, markets impacted negatively as a result of capital outflows in developing countries which caused by doubts about global growth and worsening risk perception. The debt crisis in Europe and predictions for recession took its toll on ISE companies’ profitability and brought about a depreciation of their stocks value.
Begining the year 2011 at level of 1,50 foreign exchange rate, followed moving upwards throughout year, reached an all time high at 1,92 with significiant increase in its momentum after August 2011.
Furthermore, negative expectations for global affairs and realizations of the deepening debt crisis in some of European contries, resulted in a depreciation of the Euro and domestic currencies in developing countries against USD. In Turkey, perceived as a safe haven, increasing demand in USD by foreign funds mostly constructed with investment portfolios, caused Turkish Liras to perfom weakly against USD
After purchasing regulated foreign exchange tenders from the beginning to the midldle of the year, the CBT ceased purchasing in July 2011 and began in August to regulate foreign exchange sales tenders to provide and expand liquidity in the economy.
In addition, the CBT focused to limit increases in the foreign exchange rate by direct interventions at the last term of 2011.
According to middle term program between 2012 and 2014, GNP growth rate is expected to be set at 4% in 2012 and at 5% in both 2013 and 2014. Due to forecasts for the employment rate to rise gradually and exports to grow higher than imports, current deficit is anticipated to decrease. As a consequence, the inflation rate is expected to return to single-digit numbers and to be balanced at the level of 5%.
Middle Term Program 2011 2012 2013 2014
GDP (TRY billion, current prices) 1.281 1.426 1.572 1.733
GDP (USD billion, current prices) 766 822 888 952
GDP Growth 7,5 4,0 5,0 5,0
Unemployment Rate (%) 10,5 10,4 10,2 9,9
Exports (FOB) (USD billion) 134,8 148,5 165,7 185,1
Imports (CIF) (USD billion) 236,9 248,7 272,5 295,9
Exports/Imports (%) 56,9 59,7 60,8 62,6
Current Account Balance (USD billion) -71,7 -65,4 -67,0 -67,1
Current Account Balance / GDP (%) -9,4 -8,0 -7,5 -7,0
Macroeconomic Overview and
Banking Sector
According to analysis completed in December 2011, total assets in the banking sector reached a level of TRY 1,2 trillion while deposits were set at TRY 696 billion. In addition, loans registered TRY 701 billion in the banking industry Looking at improvements of participation banks through 2011, participation bank assets increased to TRY 56,2 billion and deposits reached TRY 39,2 billion as volume of loans was recorded at TRY 41,5 billion. Comparing performance of participation banks to the rest of the banking industry, participation banks increased their share in deposits and total assets in the banking industry.
The share of participation bank assets in the banking sector total assets moved upward from 4,31% in 2010 to 4,61% as of year-end 2011. The share of
participation bank deposits in the banking industry rose to 5,64% in December 2011, up from 5,36% in 2010 while loans share in the banking industry stepped backward from 6,03% in the previous year to 5,93% in 2011
Developments in theBanking Sector
Total assets in the banking sector
reached TRY 1,2 trillion while deposits
were set at TRY 696 billion as of year
end 2011
The share of participation banks total assets
increased by 4,6% in 2011, up from 4,3% in 2010.
Assets Improvement (TRY million)
Year Participation Banks Change (%) Deposits Banks Sector Participation Banks /Sector (%)
2007 19.445 41,4 543.272 581.606 3,34
2008 25.770 32,5 683.823 732.536 3,52
2009 33.628 30,5 773.357 834.014 4,03
2010 43.339 28,9 932.371 1.006.667 4,31
2011 56.153 29,6 1.119.915 1.217.711 4,61
Deposits Improvement (TRY Million)
Year Participation Banks Change (%) Deposits Banks Sector Participation Banks /Sector (%)
2007 14.834 33,0 342.031 356.865 4,16
2008 19.045 28,4 435.554 454.599 4,19
2009 26.711 40,3 487.909 514.620 5,19
2010 33.089 23,9 583.947 617.037 5,36
2011 39.220 18,5 656.281 695.501 5,64
Loan Improvement (TRY Million)
Year Participation Banks Change (%) Deposits Banks Sector Participation Banks /Sector (%)
2007 15.367 46,3 279.868 304.909 5,04
2008 20.190 31,4 364.592 397.460 5,08
2009 25.372 25,7 382.334 422.270 6,01
2010 32.412 27,7 488.650 537.492 6,03
Bank Asya’s
Activities in 2011
Increasing its current assets by 50%
during the year, Bank Asya ranks first
with its rate of current assets in the sector.
Growth of the funds collected on
the basis of customer groups
As of 2011, Bank Asya, particularly thanks to an upward trend in retail and SME’s customers volume, continued to increase the funds collected on the basis of its customer group, The Bank also focused on taking measures against small slices of sources in line with its target to generate long-term, multi-partnered structure of fundGold Account
Besides economic contraction experienced in Eurozone, and increased demand for gold, Bank Asya’s gold account reserves vaulted 9,948 kg with an impressive increase of 470% up from 1,745 kg at the begining of the year. This took place in response to individual investors headed towards gold.
Annual collected funds trend (Milion TRY)
12.397 11.167 9.137 5.843 4.698 2011 2010 2009 2008 2007
Annual total current account trend (Million TRY)
3.121 2.081 1.593 1.007 888 2011 2010 2009 2008 2007
Annual Total Participation account trend (Million TRY)
9.276 7.544 4.836 3.810 9.086 2011 2010 2009 2008 2007
Bank Asya ranks first with
the rate of increase in current
acoounts within the sector
Succeeded in 50% growth to TRY 3,121 million throughout 2011, Bankasya prolonged its leadership in sector with the rate of current assets in total assets while entire banking industry accrued with 23% growth in total current assets.Accomplished the year with
11% growth in assets...
Bank Asya, finished the year 2011 dominated by importance of deposits growing incrementally as a consequence of global economic shrinkage, at the point of TRY 12,4 billion in assets with 11% growth compared to the previous year.Continued its first place in
annual total participation
accounts
Enhancing total participation accounts at TRY 9,276 million in 2011, Bank Asya, continued its first place in interest-free banking industry.
Strong and healthy growth
in line with strategic targets
Customers as long-term
business partners...
In the constantly changing and fiercely competitive environment of financial markets, Bank Asya strives to meet the needs of its customers that it sees as long-term business partners. The Bank serves each client with multidimensional projectbased solutions in a timely manner. The bank conducts corporate marketing activities in line with its customer-oriented banking principles.
Bank Asya has six corporate branches (three in Istanbul and one each in Izmir, Antalya, and Ankara) and employs 86 specialist personnel in these branches as well as 11 expert employees in the Headquarters Corporate Marketing Department. The Bank provides more effective and more efficient financing facilities to its clients and supports entrepreneurs with its network of dedicated staff.
The marketing network includes the corporate marketing personnel employed in the branches and is also strategically supported by the Headquarters Corporate Marketing Department. This organizational structure allows the Bank to be closer to clients and to review and resolve customer requests in a timely fashion.
As the pioneer of many groundbreaking practices in participation banking, Bank Asya operates on the principle of self-improvement with respect to new customer needs that may arise as a result of an evolving and changing economic environment. The Bank analyzes customer needs appropriately, conducts effective marketing activities, and assesses loan applications in accordance with the principles of security, liquidity and profitability.
Corporate Banking
Main categories of products
offered to corporate clients
• Current Accounts• Participation Accounts • Cash Management • Cash Loans • Non-Cash Loans • Foreign Trade Finance • Insurance Services • AsyaCard Business
Bank Asya’s customer-focused
marketing policy principles:
• Conducts frequent customer visits inorder to keep abreast of their current concerns and to respond to their needs with appropriate solutions, while maintaining regular communications, • Takes action in a timely and effective manner when dealing with customer requests,
• Responds to customer requests clearly in order to achieve customer
satisfaction and reassures clients to ensure the continuity of business relationships,
• Develops new products and services in line with customer expectations and serve clients with an extensive product lineup,
• Is open to customer suggestions and restructures business processes accordingly in case of need,
• Increases its presence within the sector by adding new customers to its portfolio while enhancing relationships with existing customers,
• Offers products and services that are efficient, profitable and competitively priced,
• Structures its organization in line with corporate objectives and generates results.
Bank Asya provides a comprehensive range of services to meet the needs of its corporate banking clients, from lending and cash management to foreign trade and investment products, with its extensive lineup of products, professional asset management teams, advanced technology systems and diverse distribution channels. The Bank plans to develop fast-paced and comprehensive offerings while remaining committed to its corporate values and risk-management policies in accordance with its objective of “supporting the producers.”
A master in project finance
Institutionalizing sophisticated experiments gained from projects, specializing in project finance, associating with each project closely, Bank Asya, having financed significiant projects since its foundation, aims to enhance its efficiency in its profitability and risk management policies. For this purpose, the Project Finance Department, employing a dedicated expert team in project finance was established within the HeadquartersProfit/Loss sharing projects
As one fundamental instrument of interest-free banking, profit-loss sharing projects are analysed and prosecuted by the Project Finance Department. Bank Asya has different types of profit-loss sharing projects, of which analysis and meetings still continue. Yet already, one profit-loss sharing project, of which the sale and contsruction processes are expected to be completed within two years, was designed and loaned by the Project Finance Department.Additionally, sectoral reports complied with results of Project Finance Department’s analysis of developments in the sector, were periodically composed and submitted to Bank Asya’s personel.
In different periods within 2011, detailed reports about the Housing Sector, the Health Sector and the Tourism Sector were issued and distributed to personnel
Bank Asya’s Activities in 2011
Commercial Banking
Remarkable growth in financial
leasing...
While providing financial support to its commercial banking customers requsition to increase their investments, production capacity, profitability and employment during 2011, Bank Asya, thanks to its international reputation, also furnishes non-cash services to companies in need of letters of guarantees, counter guarantees, letters of credits, avalization etc. arising from project conditioned with commitment, or foreign trade transactions.
Improvements in financial leasing, as one of primary objectives on marketing agenda throughout the year 2011, boosted incomparably to the previous years’ volume and as a consequence Bank introduced with remarkable leasing portfolio. Servicing an extensive product line including cheque books, POS, tax, SSI and invoice payments, wage payments, insurance services and internet banking, Bank Asya, with advanced technology and practical solutions, also aims to improve its service network in a pioneering manner to achieve customer satisfaction within pure competitive market.
Besides aiming to operate banking services and products in accordance with sound policies and marketing strategies in order to increase profitability and ensure continuity of business relations, Bank Asya contributes to generate and improve commercial portfolios and marketing orginazation.
Regional Offices, timely and
more efficient banking
During the year 2011, seven new Regional Marketing/Allocation Offices in additon to the South East Anatolia and Aegean Regional Offices, were established to operate banking activities.
In conjuction with establishment of the Istanbul Europe I, Istanbul Europe II, Istanbul Anatolia, Ankara, Marmara, Konya and Black Sea offices, Regional Offices commenced to conduct all loan and banking transaction processes of SME customers within allocated credit limits. By constructing Regional Coordination and Product Portfolios, the SME Banking Dept was underwent for a change in its organizational structure.
As a result of the increase in the number of regional offices and self-authority for allocation, the Commercial Banking Department was merged out of two different departments in the previous periods.
