DenizBank forges ahead towards becoming a LoveBank in Turkey with its “customer-oriented banking approach” in various sectors such as agriculture, SME, commercial, corporate, etc. “Deniz is Everywhere”!
DenizBank maintained its profitable growth by progressing through its targets despite the global economic crisis that affected all sectors deeply and it made significant innovations and attained great success under Dexia umbrella.
2008 year-end financial statements are another proof of this success. Compared to the previous year, our total assets grew by 30% and reached TL 24.222 million and our total equity including subordinated loans grew by 50% and reached TL 3.059 million.
We attained these figures by expanding our vision with the “financial supermarket approach” rather than being just a bank and by producing products and services that meet customers’ various needs. In the light of this approach, total credits of DenizBank, the bank with the best in loan to deposit ratio, increased by 29% and reached TL 17.235 million in 2008.
In 2008, DenizBank held a leader financial institution position in terms of providing all sectors with financial support, increased its customer deposit volume by TL 1.012 million and reached TL 11.834 million and provided special services to customers in accordance with their risks, savings and needs.
With a year-end net profit of TL 342 million, 400 branches and approximately 8200 employees; DenizBank has become a financial group that takes confident steps towards the future. Our success depends on our significant team work. This success is attained by the collective effort of members of DenizBank family in all departments: in our call center, internal services, operations, IT software and correspondence, etc.
Integrated with “Deniz is Everywhere” slogan, DenizBank forges ahead towards becoming a LoveBank in Turkey with its “customer-oriented banking approach” in various sectors such as agriculture, SME, commercial, corporate, etc. I would like to summarize on the basis of business lines our successful works that will lead us to our targets:
Credits
DenizBank is aware of the fact that SMEs have to use their financial instruments well in such a global crisis environment. Focusing on small and medium size enterprises, which DenizBank considers as the heart of national economy; we presented tailor-made products to fulfill SMEs’ needs. Compared to the last year, our SME credits increased by 38%.
During 2008, DenizBank continued presenting products and services tailor-made for agriculture sector, which is the top niche sector for DenizBank, via its 171 Agricultural Banking Branches across the country and credits granted to producers increased by 67%.
In 2008, we increased our total volume in Retail Banking by 36%. Within this period, commercial segment credits grew by 17% while corporate credits grew by 25%. During 2008, when global finance markets faced serious problems due to deterioration in asset quality and equity crunch, DenizBank also succeed in increasing its FX cash-loans.
Our point of departure is; to present our customers the privilege of being a DenizBank customer by providing them with special products that we developed after analyzing their needs. We will continue with our studies to enable our customers use banking products by benefiting at maximum from alternative distribution channels and realize banking transactions easily.
SME Banking
Departing from the fact that the most important problem facing SMEs is the inability to make complete use of financial intermediaries, DenizBank maintains its activities aimed at closing the gap in this area with the products and services it offers. Launching in the midyear the “SME Card”, this is a brand new application in Turkey and in the world, our Bank united retail and commercial credit needs in a single banking product which is a fair example. This special service of DenizBank, which facilitates lives of business owners, is a source of pride for us.
Agricultural Banking
Attaching special attention to agriculture, which is among the most precious values of our country, and in the light of its principle to provide any kind of support to develop the sector; DenizBank maintains its assertion and empowers it further day by day. DenizBank is the only private sector bank that employs teams and owns a branch network specific for agriculture sector. In the scope of this approach, number of our agricultural branches increased from 26 to 171 between the years 2004 and 2008 and we expanded our branch network across the country. Leading the Turkish banking sector by innovations and setting the agricultural sector as one of its focal points; DenizBank reached a large customer mass and provided them with every type of financial support that they are in need of. That we are the private sector bank which granted the most agricultural credit in the sector as of June 2008 is the indicator that we do our job well and correctly.
Retail Banking
By holding many campaigns in 2008 in retail banking, the Bank promoted active usage of DenizBank credit cards and turnover increase. While attracting approximately 400.000 new customers through innovative products and its service approach, DenizBank increased its retail banking customer number to 2.5 million. Market share of consumer loans of our bank reached 4.5% at the end of 2008 through innovative and creative products launched by DenizBank Retail Banking Department.
Offering more than 300 alternatives to its customers, DenizBank differentiated also in mortgage system and implemented the Customized Mortgage system, and now it is proud of being a pioneer at the sector offering mortgage loan to foreigners.
Bank Insurance
Rendering life insurance products and services under the brand name Deniz, DenizHayat obtained pension company incorporation permit in 2008 and began to offer services with the name Deniz Emeklilik ve Hayat A.Ş. Thanks to this, our bank achieved one of its strategic targets and differentiated between life and non-life in Bank Insurance activities.
Deniz Emeklilik ve Hayat produced 468.000 policies and generated TL 43.4 million premiums in 2008, and increased by 63% in life branch and by 350% in personal accident branch. With produced premiums, market share of Deniz Emeklilik ve Hayat increased to 2.16% from 1.47% in life branch and reached 2.01% from 0.52% in personal accident branch. Today Deniz Emeklilik ve Hayat ranks the third in personal accident branch among all life insurance companies with its market share of 2.1%.
Project Finance
DenizBank continued to support many sectors, especially energy and healthcare, in terms of project finance in spite of liquidity crunch and proved itself in the world. Total loan volume of DenizBank Project Finance Department reached USD 1 bn at the end of 2008.
Public Finance
DenizBank broke ground in Turkish banking history by defining public finance as a separate line of business. DenizBank Public Finance department began to operate as of January 1, 2009 and signed a credit pack of EURO 80 million with the European Investment Bank (EIB) and another credit pack of EURO 150 million with the Agence Française de Developpement (AFD) concerning public finance. These agreements aim to encounter long term solutions for the finance needs of local administrations besides offering training and technical support programs for municipalities.
Foreign Trade Finance
The number of DenizBank’s correspondent banks exceeded 1200 in 2008 and the volume of letters of credit and external guarantees reached USD 2.5 billion. Foreign trade finance activities of DenizBank will continue by increasing in the future.
Corporate and Commercial Banking
Being restructured in 2008, DenizBank Commercial Banking Group continues to grow in a sustainable way. The number of commercial branches reached 19 at the end of 2008 and the share of corporate and commercial banking activities among credits stands at 53%. One of our top priority targets in the new year is to increase customer loyalty through high quality banking products and services and increase market share of our bank which has strengthened its position at the sector.
Future
Getting out of crises and economic fluctuations by gaining strength and growing up until today, DenizBank continues to proceed with confident and robust steps in 2009 as well. We sail in this sea trying to retain our human resources in the crisis, to use current potential more efficiently and, while doing so, to increase the number of our customers and branches.
Reaching 450 branches at the end of 2009, we implement our strategy integrated with “Deniz is Everywhere” slogan through our rising star identity at the sector. The power of Dexia wind can continue with the experience of our captains, effort of thousands of sailors and thrust of distinguished DenizBank customers who set our direction. We have a profitable growth rate. I express my deepest gratitude to all our shareholders who have brought us to large seas with their support and thrust in this path.
Hakan ATEŞ
President and CEO