Dear Shareholders and Customers,
After 2009, the year when both Turkey and the whole world deeply felt the effects of the financial crisis, there comes the year 2010 promising great hopes for Turkish and world economy both.
From the start of 2010 as a Bank we reached very successful results and in the framework of our “financial supermarket” approach built on the grounds of a vision beyond being just a bank; we continued to offer products and services that satisfy the evolving expectations of our customers. With the “customer oriented banking approach”, Deniz is “everywhere” in various banking segments like Agricultural Banking, SME Banking, Commercial Banking and Corporate Banking and forges advances rapidly to become the “lovebank” of Turkey.
In the year 2010 we continue adding new success stories in our logbook. Our success stories make our shareholders content and enable us to realize our projections. The success we attained with the aim of being able to render the best service to you dear customers has become a source of encouragement for us. The latest results we disclosed prove that DenizBank made right steps and is confident about the future. Our Bank’s results for the first half of 2010 indicate that our Bank performed above sector average. In this period, DenizBank’s consolidated 2010 1st half net profit was realized as TL 327 million, with a 24% y-o-y growth, outperforming the sector.
DenizBank’s consolidated assets reached TL 28 billion 908 million, with a growth of 11% compared to 2009 year-end. Our consolidated equity reached TL 3 billion 270 million with a growth of 25% on y-o-y basis and with a growth of 10% compared to year-end results (both of which are above sector average), so the strong equity base is protected. Our Bank’s consolidated capital adequacy ratio realization is 15.90%.
DenizBank’s specific solutions are one of the most important components of the success we attained in the post-crisis period. In the first half of 2010, our consolidated credits reached TL 20 billion 884 million as we offered our customers solutions that meet their financial needs in the framework of our enlarged service network and rich product range and as we increased our credits in all segments especially in public finance, agriculture, credit cards and retail banking. DenizBank grew customer deposits, its main source of funding, by 13% outperforming the sector and reached TL 16 billion 616 million.
Our Bank continues with agricultural breakthroughs. Thanks to its investments in agricultural sector and opportunities it offered to producers, DenizBank has secured its leading position for agricultural credits among private banks. In the first half of 2010, net amount of agricultural banking credits grew by 13% compared to year-end results and reached TL 1 billion 392 million. Number of “Green Drop” concept branches, which are exclusive agricultural banking branches, reached 35, while the number of DenizBank branches that offer agricultural banking services reached 215.
At this point I would like to underline our strengths and differences. “SME Card” is one of our strengths. With SME Card we continue to support enterprises with time and cost management. In the first half of 2010, number of SME Cards neared to 80 thousand and Producer Card number exceeded 262 thousand; when other commercial cards are also included in the calculation, DenizBank became the leader in commercial banking cards sector. Public finance is one other strength of us. DenizBank is the first bank to define public finance as a separate business line in Turkey and maintained its incomparable growth in this regard. In public banking, DenizBank established contacts with 80% of municipalities of cities above a certain population and opened credit limits to municipalities for transport, environment and healthcare projects, for which there is strong popular demand and provided long term financial support for projects under favorable conditions. DenizBank increased its cash and non-cash public finance credits by 12% and so its total public finance credits reached up to TL 851 million.
While attaining financial success in one hand DenizBank continues to support cultural and artistic activities on the other hand. With this aim, DenizKültür, established in 2004 as one of the 15 subsidiaries of DenizBank Financial Services Group, supports cultural life by launching new projects in cultural and art life. DenizKültür itself can be considered as a social responsibility project launched by DenizBank Financial Services Group. We continue supporting culture and art in 2010.
It is for sure that international experience of our main shareholder, Dexia empowers us in these processes. Making significant innovations and attaining great success under Dexia umbrella, as of the end of the end of the first half of 2010 DenizBank contributed to Dexia’s € 464 million IFRS-reported net profit by 33% after acquisition cost deducted and proved its trustworthiness. We will make DenizBank grow further thanks to our service quality and customer satisfaction level. This year again, we will carry on our efforts in the framework of our vision of being one of the 5 biggest banks in Turkey and the foremost financial institution in our region by ensuring sustainable and profitable growth. Aiming at being a bank satisfying its employees’, customers’ and shareholders’ at maximum levels in terms of its standing and reputation in the sector and its corporate qualifications; DenizBank takes confident steps towards future with its shareholders and customers. I would like to extend my heartfelt thanks to all stakeholders who carried us to open seas with their support and trust.
Hakan ATEŞ
President and CEO