AKBANK SUSTAINABILITY REPORT 2016
CONTENTS
02 Message from the Chairwoman 04 Message from the CEO 08 Akbank and Sustainability - A Timeline 09 Timeline of Akbank’s Sustainable Initiatives 12 About Akbank 22 About the Report 26 Our Approach to Sustainability 40 Corporate Governance at Akbank 46 Risk Management and Legal Compliance 54 Value Added to Our Customers 84 Our Distinctive Employees 100 Our Operations and the Environment 108 Our Community Investment 115 Global Reporting Initiative (GRI) Content Index 158 Women’s Empowerment Principles - WEPs Progress Report 159 Identity Suzan Sabancı Dinçer Chairwoman
SUSTAINABILITY REPORT 2016 2 MESSAGE FROM THE CHAIRWOMAN
As part of our education and entrepreneurship initiatives, priority areas in our social investing program, we would like to share with you the pride and joy of launching the Center of Excellence in Finance (CEF) and CaseCampus projects in 2016.
Esteemed Stakeholders, The volunteering projects carried out by Akbankers, who distinguish themselves with their experience Operating with the goal of creating sustainable and expertise, bolster the social value we generate value since its foundation, Akbank continued to in various areas. support Turkey’s growth and development in 2016. The Bank focused on education, entrepreneurship, Pioneering Projects in Education, culture, and art initiatives in its corporate social Entrepreneurship… responsibility activities; executed many projects by As part of our education and entrepreneurship bringing together voluntary Akbankers; and made initiatives, priority areas in our social investing numerous social contributions. It is with great pride program, we would like to share with you the pride and pleasure that I share with you the product of and joy of launching the Center of Excellence our sustainability initiatives; our eighth Akbank in Finance (CEF) and CaseCampus projects in Sustainability Report prepared in line with Global 2016. Launched under the founding sponsorship Reporting Initiative (GRI) Sustainability Reporting of Akbank, CEF brings together academics, Guidelines and the United Nations Global Compact businesspersons and politicians in various training, (UNGC). seminar and conference events.
Sustainable Social Investment The CaseCampus Program is our joint venture In addition to maintaining strong support for with Endeavor Turkey that was attended by young Turkey’s economic growth, Akbank also contributed people from every corner of Turkey dreaming of to the country’s social development through its starting their own business. The program was held focus on education, culture, art, entrepreneurship, in two periods and celebrated its first graduates and volunteering as prioritized social investment last year. In addition to CaseCampus, we extended areas in 2016. the entrepreneurship initiatives we have undertaken in Istanbul jointly with Endeavor to Ankara and The culture & art projects carried out resolutely Izmir under the name of the “Smartstartup Cities” by the Bank make the arts accessible to all Program. people encompassing diverse demographics while expanding the scope of creativity and critical I would like to thank to all of our stakeholders for thinking. supporting our sustainability journey in 2016.
We believe that free and original ideas inspire Yours sincerely, progress in every field. To this end, we work tirelessly to support our brave entrepreneurs, who are the pioneers of innovation.
As part of our education initiatives, we continued to organize comprehensive training programs for Suzan Sabancı Dinçer our stakeholders with the participation of experts Chairwoman in 2016. SUSTAINABILITY REPORT 2016 3 Hakan Binbaşgil Akbank CEO
SUSTAINABILITY REPORT 2016 4 MESSAGE FROM THE CEO
Prioritizing culture, art, education and entrepreneurship as part of its social investing program to facilitate Turkey’s ascent in the global economy, Akbank continued to deliver pioneering projects to expand financial literacy and entrepreneurship among the various demographic segments of society led by the youth.
Conducting its business operations to create CEF: A Strong Bridge between Academia, the sustainable value for Turkey, Akbank recorded Finance Industry and the Real Sector strong financial and operational results in 2016 Launched with the support of Sabancı University, while continuing to make social investments the Center of Excellence in Finance (CEF) that will generate lasting value for the country. started its operations in 2016 by hosting its first Increasing its assets to TL 294 billion year-end conference: “The Future of Financial Markets.” and announcing net profit of TL 4,854 million for The Center aims to create value for the Turkish fiscal year 2016, the bank continued to boost finance industry by acting as a bridge among the the savings of all stakeholders, particularly its real sector and finance industry representatives, shareholders. Prioritizing arts, culture, education policymakers, academics, and students. With an and entrepreneurship as part of its social advisory council consisting of globally recognized investment program to facilitate Turkey’s ascent names, the Center completed its first term with in the global economy, Akbank continued to deliver training programs, in-depth research reports pioneering projects to expand financial literacy and and seminars geared toward professionals and entrepreneurship among the various demographic university students. segments of the society, particularly the nation’s youth.
SUSTAINABILITY REPORT 2016 5 MESSAGE FROM THE CEO
CaseCampus Program: A Major Step in the Akbank Jazz Festival Turns 26 Development of the Entrepreneurship Ecosystem Supporting arts and culture in Turkey since the The CaseCampus Program was launched jointly day it was founded, Akbank continued this mission with Endeavor Turkey for university students who with nearly 900 arts and culture events this year dream of starting their own business. Founded to under the umbrella of Akbank Art Center. Akbank accelerate the development of the entrepreneurship Jazz Festival, organized successfully by the bank ecosystem in Turkey, the program celebrated since 1991, continued to present world-class vocals its first graduates in 2016. We wish successful and sounds to Turkish music enthusiasts in its 26th entrepreneurial careers to our graduates who have year. Panels, workshops, film screenings, concerts successfully completed the innovative training and social responsibility projects held as part of program taught by Endeavor Turkey entrepreneurs. the Akbank Jazz Festival, one of Turkey’s longest running festivals, continued to enrich the arts and “Smartstartup Cities” Program culture scene in Turkey. Entering into a new partnership with Endeavor Turkey in 2016, we extended our entrepreneurship Akbank Brings Acts of Goodness to Istanbul and initiatives we have been undertaking in Istanbul 25 Cities with “Young Volunteers,” “Volunteers of to Ankara and Izmir under the name Smartstartup Akbank” Cities Program. Our goal in this effort is to reach We undertook the Young Volunteers Project – out to active entrepreneurs in these major cities, where we included university students in the support them, create role models out of them, and volunteer-driven projects we have conducted for contribute to the development of region-based years with Akbankers – for the second year. As entrepreneurship ecosystems. part of the 26th Akbank Jazz Festival, 500 young persons volunteered in the various activities of the Community Volunteers Foundation of Turkey, the DenizTemiz/TURMEPA (Turkish Marine Environment Protection Association), the Friends of the Yedikule Animal Shelter Association, and Hayat Sende Youth Academy Association. Our initiative expands each passing year with the swelling ranks of young volunteers and new partnerships with civil society organizations.
SUSTAINABILITY REPORT 2016 6 Akbank became a signatory to the Women’s Empowerment Principles (WEP), a private sector venture by the United Nations that aims to empower women to take part in all sectors and all aspects of economic life.
“Best Volunteering Project” Continuing to Generate Value for Turkey’s Since 2012, under Akbank’s “Junior Savers” effort Sustainable Development to improve financial literacy across various As Akbank, we would like to thank all our segments of the society and encourage savings, stakeholders for the support they provide to we have reached a total of 75,000 elementary and our banking operations that underpin economic middle school students from every corner of Turkey activities across all segments of society, as well as of year-end 2016. The project, which aims to as our social investments that span a broad area, create savings awareness among elementary and from entrepreneurship and education to arts and middle school age children, was recognized with culture. We will continue to generate lasting value the “Best Volunteering Project” prize at the Private for Turkey’s sustainable development in the coming Sector Volunteers Association (ÖSGD)’s annual years with the valued support of our stakeholders. “Volunteering Awards” Program.
Akbank signs an agreement to support women’s empowerment Akbank became a signatory to the Women’s Empowerment Principles (WEPs), a private sector Hakan Binbaşgil venture by the United Nations that aims to Akbank CEO empower women to take part in all sectors and all aspects of economic life.
SUSTAINABILITY REPORT 2016 7 AKBANK AND SUSTAINABILITY - A TIMELINE
Corporate Development of 2001 Akbank N.V. established in the Netherlands. Akbank Akbank Call Center started operations. January 1948 Established in the city of Adana to finance cotton 2005 producers in the region. Akbank became the first bank to repurchase its founders shares. 1950 First branch in Istanbul opened in Sirkeci. AkLease incorporated.
1954 2009 Akbank Head Office moved to Istanbul. Akbank International Advisory Board established.
1963 Akbank (Dubai) Limited as the first Turkish bank Automation of all banking operations. established in Dubai International Finance Center.
1964 2010 First representative office opened in Frankfurt, Akbank Banking Center put into service with a Germany for bank transfers of Turkish workers. capacity of approximately 5,000 people.
1981 2011 All banking operations computerized and online Send Money and Pay Mobile-the first of its kind in transactions started. Europe-operations facilitated customers’ access to financial services. 1990 Akbank shares offered to public. 2012 “Akbank Direkt” brand that combines the Internet 1996 and Mobile Banking services launched. AkSecurities established. Akbank N.V. in the Netherlands ceased operations Investor Relations Group established to manage and merged with our 100% subsidiary in Germany: relations with shareholders. Akbank AG.
1998 2014 With a secondary public offering, Akbank shares Akbank was chosen as one of only 15 companies to started trading in international markets as an be included in the BIST Sustainability Index within American Depository Receipt (ADR). Borsa Istanbul.
Akbank Representative Office in Frankfurt 2015 transformed into a branch. The Akbank 2014 Sustainability Report is prepared in accordance with the GRI G4 “Comprehensive” 1999 Reporting Principles. Akbank Internet Banking started. The first version of the Investor Relations app, 2000 which launched in January 2016, was completed for Ak-Portfolio Management and Private Banking the iOS operating system in December 2015. Business Units established. 2016 Akbank Malta branch opened. The Akbank Investor Relations website and sustainability website became available for stakeholder access.
SUSTAINABILITY REPORT 2016 8 TIMELINE OF AKBANK’S SUSTAINABLE INITIATIVES
2000 2010 Akbank Information Technologies obtained ISO Became the first Turkish bank to publish UN Global 9001 Quality Certification. Compact Communication on Progress Report.
2003 Drew attention to environmental transparency Became the first bank to publicly declare its by supporting the implementation of the Carbon dividend policy. Disclosure Project (CDP) in Turkey.
Became the first bank to announce Corporate Became the first Turkish deposit bank to publish a Governance Principles in the annual report. Sustainability Report in accordance with the GRI standards. 2004 Became the first bank to publish Corporate Became the first and only Turkish institution to be Governance Principles in its website. included in the CDP 2010-Global 500 reporting and received scores that carry the Bank to the World 2005 Sector Leaders category. Became the sponsor of the “Make a Wish” foundation, established to fulfill the wishes of “Akbank Energy-Friendly Loan” launched. children aged 3-18, fighting against life-threatening diseases. A loan pool with favorable terms launched for entrepreneurs selected by Endeavor Turkey. 2007 Became the first Turkish bank to sign the UN Global Supported the “Before They Disappear” project Compact. implemented in Turkey in coordination with the Regional Environment Center (REC) with the aim of Started cooperation with Endeavor -an drawing attention to regions at risk due to climate international non-governmental organization change. aimed at contributing to economic development by supporting active entrepreneurs in developing 2010 and 2011 countries. Signed the Cancun and Durban Communiqués prepared prior to the United Nations 2010 and 2011 Akbank Customer Complaint Management System Climate Change Summits. obtained ISO 10002 Quality Certification. 2011 Supported entrepreneurs with its “Ideas Paving the Akbank Volunteers System launched. Way to Business” program. Akbank supported the Global Student 2008 Entrepreneurs Awards. Established “Akbank Thinking Club” with the aim of thinking together with the young and co-creating Akbank employees started to attend sustainability values for the future of Turkey. trainings.
2009 2012 Corporate Governance and Social Responsibility Became one of first companies in the world to Committee (CGSRC) established under the Board sign the “Carbon Price Communiqué” prepared by of Directors. The Prince of Wales’s Corporate Leaders Group on Climate Change (CLG) to draw attention to the Women’s Development Center “BİZ,” established need to develop a clear and transparent pricing by KAGİDER (Women Entrepreneurs Association of policy for carbon emissions. Turkey) with the aim of helping women improve their individual productivity, opened with Akbank as the To combat the savings deficit, which is an main sponsor. important barrier against the development of Turkey, Akbank initiated a social responsibility program named “Savings Campaign” to complement its banking products and services.
SUSTAINABILITY REPORT 2016 9 AKBANK AND SUSTAINABILITY-A TIMELINE
2013 2016 Akbank consolidated its services for artisans under Akbank launched Eko POS tariffs, enabling SMEs the “Craftsmen Fraternity” concept. The “Pay When that want to set their member merchant expenses You Can Loan,” the first product unveiled under this to pay fixed monthly fees for budget-friendly tariffs concept, provided artisans with the flexibility of based on the limits of the selected package. making loan payments according to their income streams. In support of the digitalization efforts of SMEs, Akbank partnered with Vodafone to offer a special 2014 SME version of Vodafone’s Digitalization Index to Under the “Craftsmen Fraternity” concept, Akbank its customers. continued to deliver exclusive products and services for craftsmen customers. These special Akbank began developing solution partnerships offerings include Axess SME, “Pay as You Wish with fintech companies that design digital Craftsmen,” complimentary tablet in return for applications which make the lives of SMEs easier. POS turnover commitment, TESK (Confederation of Turkish Tradesmen and Craftsmen) cooperation As part of the “My Business Partner Vodafone” agreement, Craftsmen Internship, and Craftsmen venture, Akbank organized the “Hackathon” event, a Festival. first of its kind in Turkey aimed at generating digital solutions to address SMEs’ problems. Akbank launched the “Akbank Academy of Family Businesses,” a joint venture with Sabancı Akbank conducted the “Keys to Sustainable University’s Executive Development Unit (EDU) Success for Family-Owned Businesses” study in geared toward family members who own or are conjunction with Sabancı University, Deloitte, and employed at family businesses. This effort aims to the Family Business Association of Turkey (TAİDER). enhance the competitiveness of businesses, help them establish a healthy growth trajectory, and The cooperation between Akbank and Paraşüt support their sustainability and institutionalization enabled businesses to manage their financial efforts. operations centrally from a single source and keep their finances under tighter control. 2015 Akbank became a signatory to the Pledge for The CaseCampus Program, a joint venture of Action, which allows non-party stakeholders to Akbank and Endeavor launched for young people welcome the Paris Agreement on climate change who want to start their own businesses, celebrated and commit to implement the new roadmap its first graduates. circulated at the COP21 Conference of Parties in Paris. Akbank and Endeavor launched the Smartstartup Cities Initiative to foster the entrepreneurship Under “Young Volunteers” initiative, Akbank carried ecosystem in Ankara and Izmir. out more than 30 volunteering projects in wide- ranging issues, from shore clean-up and education The Center of Excellence in Finance (CEF), a to animal rights and health, in 26 provinces with the significant venture in the education-training space, participation of university students. commenced operation as a partnership of Akbank and Sabancı University. Akbank launched the CaseCampus project in partnership with Endeavor for young people who The “Young Volunteers” project expanded its aspire to become entrepreneurs. scope in 2016 thanks to a new partnership with a civil society organization and a larger number of Akbank initiated efforts to establish the Center of university student participants. Excellence in Finance (CEF), an important initiative in the education field, as a joint venture with Akbank organized the “Akbank Academy of Sabancı University. Family Businesses” – a joint venture with Sabancı University’s Executive Development Unit (EDU) geared toward family members who own or are employed at family businesses – for the seventh time in 2016.
SUSTAINABILITY REPORT 2016 10 Timeline of Akbank’s Culture & Akbank Children’s Theatre boarded Hürriyet Newspaper’s “Human Rights Train” to once again Art Initiatives carry the excitement and beaut of theatre to 45 cities in Turkey. 1972 Akbank Children’s Theatre started performances. Rock legend Metallica came to Turkey with the sponsorship of Akbank and 37,000 fans had the 1991 opportunity to watch the band live on stage. Akbank Jazz Festival started with the aim of creating a well-established musical culture in 2009 Turkey, by bringing world’s most famous jazz Latin Rock legend Carlos Santana gave a concert in performers to large audiences. Istanbul with the sponsorship of Wings.
1993 2010 Akbank Art Center established. Around 75,000 people participated in the Sonisphere Festival that brought world-famous heavy metal 1998-2000 bands with the sponsorship of our exi26 brand. Ottoman Calligraphy Exhibition “Golden Letters,” containing numerous valuable works, exhibited 2011 in New York Metropolitan, Los Angeles County Akbank became the prominent supporter of Turkish Museum of Art, and Paris Louvre with the National Youth Philharmonic Orchestra. sponsorship of Akbank. Akbank sponsored the “Cirque Du Soleil- 2003 Saltimbanco” show. Akbank Art Center restructured itself towards modern arts and accelerated the artistic dynamics 2012 of our country by drawing attention to the local and Akbank Children’s Theater celebrated its 40th international qualities of globalizing tendency of anniversary by performing the first musical version arts with its exhibitions. of the Oscar-winning animation Shrek in Turkish.
2003-2007 2013 Became the sponsor of Rock’n Coke Festival where As part of its 65th establishment anniversary world-famous rock stars meet the youth. festivities, Akbank sponsored the first comprehensive exhibition in Turkey of the leading 2004 international artist Anish Kapoor. Akbank Short Film Festival was initiated. 2014 Akbank started to support the International Akbank Children’s Theatre reached 6,500 elementary Istanbul Film Festival and later became the main school children during an Anatolia Tour that spanned supporter. six provinces with a new play, “Family Tree,” which communicates the importance of savings. 2006 Rodin’s works were exhibited at Sakıp Sabancı 2015 Museum with support from Akbank. Akbank partnered with Sakıp Sabancı Museum to bring the “Zero: Countdown to the Future” exhibition 2007 to arts enthusiasts in Turkey. Sponsor the modern and contemporary arts event “Contemporary Istanbul,” Akbank contributed The “Louise Bourgeois: Larger than Life” exhibit, to the realization of Turkey’s most important featuring works of one of the most influential artists contemporary arts fair. of the 20th century, was presented to Turkish art lovers with the support of Akbank. 2008 With the sponsorship of Akbank, art fans had the 2016 opportunity to see the works of Salvador Dali - one Akbank Children’s Theatre began to stage Jules of the most important artists of the surrealistism Verne’s world children’s literature classic “Around movement - at the Sakıp Sabancı Museum. The the World in 80 Days,” theatrically adapted by Toby exhibition was the largest Salvador Dali exhibition Hulse and co-directed by Owen Clavert-Lyons and outside Spain. Lerzan Pamir. The play was staged 22 times by the end of December.
SUSTAINABILITY REPORT 2016 11 About Akbank
SUSTAINABILITY REPORT 2016 12 About Akbank
AKBANK IN BRIEF
Power of Change Robust and Extensive Service Akbank boasts more than Having registered countless Infrastructure, Skilled Human 14.3 million consumer banking accomplishments that spurred Resources customers, over 1 million the growth of the Turkish Making a difference among its commercial banking and nearly economy since the day it was competitors with its steadily 6,000 corporate banking clients. established, Akbank ranks growing business volume, an ever The Bank delivers a broad range among the most valuable brands expanding customer base, sound of products and services to in Turkey’s private sector. The capital position and access customers through its physical Bank is active in consumer to low-cost overseas funding branches as well as Alternative banking, commercial banking, resources, Akbank continued to Distribution Channels, such as SME banking, corporate banking, undertake innovative initiatives internet banking and telephone private banking, foreign currency in 2016. Through a strong and banking. exchange, money markets, widespread domestic delivery securities (treasury transactions) network with 840 branches, At year-end 2016, Akbank posted and international banking. almost 14 thousand employees net profit of TL 4,854 million Akbank also provides non- and 4,201 ATMs, Akbank operates while consolidated assets grew banking financial services and via its Head Office in Istanbul 17% y-o-y to TL 295 billion. The capital markets and investment and 22 regional directorates Bank instilled confidence in its services via its subsidiaries. throughout Turkey. shareholders with a consolidated The Bank has undersigned capital adequacy ratio of 14.2% many milestone projects in the and its successful financial development of high-quality performance during the year. banking services in Turkey.
NUMBER OF NUMBER OF EMPLOYEES* 13,843 CREDIT CARDS 6.2 Million
NUMBER OF NUMBER OF CUSTOMERS 15.4 Million DEBIT CARDS 7.1 Million
NUMBER OF NUMBER BRANCHES* 841 OF POS ~465 thousand
NUMBER OF ATMs 4,201 *Malta Branch is included.
SUSTAINABILITY REPORT 2016 13 About Akbank
AKBANK’S CORPORATE BUILDING BLOCKS: VISION AND MISSION
MISSION: TO VISION: BECOME THE MOST TO BECOME A ADMIRED TURKISH SUSTAINABLE COMPANY, BY LEADER BY CONTINUOUSLY RENDERING DELIVERING AN EXCELLENT SIGNIFICANT BANKING VALUE TO ITS EXPERIENCE AND STAKEHOLDERS VIA SUPPORTING ITS HIGHLY SKILLED TURKEY’S GROWTH. HUMAN RESOURCES.
Strong Foundations Strategic Goals Strong domestic controlling ownership Achieve long-term sustainable structure, return on equity of at least 15-17% Highly-qualified human capital, and create high value for all our Turkey’s most valuable bank brand, stakeholders, Long-term strategic management with Be a leader in Turkish banking sector successful implementations, in terms of key market shares, 840 branches across Turkey and high- Be the best bank in Turkey in terms of tech distribution channels, customer experience and satisfaction, The innovative power of Turkey with Be the most valuable bank in Turkey. countless firsts in the sector, A stable and extensive broad funding base, High return on equity and strong asset quality with a focus on sustainability, Robust capital structure with a capital adequacy ratio of 14.2%, Superior asset quality as well as low non-performing loans ratio of 2.3%, High level of efficiency with an operational costs/assets ratio of 1.6%.
SUSTAINABILITY REPORT 2016 14 About Akbank
AKBANK IN FIGURES
Extensive and Advanced Service Infrastructure A Balanced Customer Portfolio Consisting of across the Country Diversified Segments… Akbank continued to provide uninterrupted, high- Aiming to deliver customized financial solutions to quality services to customers in 2016 with a diversified customer segments, Akbank executes service network of more than 800 branch locations its business operations under four major business covering every corner of Turkey. lines: Corporate Investment and Private Banking, Commercial Banking, SME Banking, Consumer Banking. The Bank undertook innovative projects in accordance with long-term strategic goals and continued to increase the number of clients in each segment during 2016.
Corporate and Segments Commercial SME* Consumer Private Investment Banking Banking Banking Banking Banking
Corporate Private Commercial, SME and Branches Banking Banking Consumer Banking Branches Branches Branches 825 9 7
Number of Customers 5,600 239,000 790,000 14,300,000 8,300
* SME Banking serves customers that the Bank identified in accordance with its business model.
SUSTAINABILITY REPORT 2016 15 About Akbank
SUSTAINABLE FINANCIAL ACCOMPLISHMENTS
Conducting its operations in line with long- term strategic goals, Akbank increased its consolidated net profit by 50% to TL 4,854 million and boosted total assets 17% to TL 295 billion as of year-end 2016.
Key Financial Indicators
Akbank’s key consolidated financial indicators for the last three years are presented in the table below:
Key Consolidated Financial Indicators (TL million) 2014 2015 2016 Total Assets 218,697 252,467 294,501 Loans 136.131 153,466 178,893 Deposits 122,294 149,470 173,968 Funds Borrowed 21.269 26,177 32,304 Shareholders’ Equity 26,140 28,015 32,492 Net Profit 3,379 3,229 4,854
Return on Equity (ROE) 14.1% 12.1% 16% Capital Adequacy Ratio (BIS) 14.9% 14.5% 14.2%
Market Capitalization (USD million) 8,888
Loans
Breakdown of loans made by Akbank to clients by customer segment and currency denomination is presented in the table below:
Loans* 2015 2016 Corporate TL Loans (TL million) 14,309 20,131 Corporate Foreign Currency Loans (USD million) 14,660 13,763 Commercial TL Loans (TL million) 22,583 31,186 Commercial Foreign Currency Loans (USD million) 7,56 6 7,3 4 6 Other Commercial TL Loans (TL million) 13,108 13,744 Consumer (TL million) 28,645 29,384 Credit Cards (TL million) 10,888 10,566
* Excluding accruals.
SUSTAINABILITY REPORT 2016 16 About Akbank
Executing its banking activities in pursuit of value added-oriented projects, Akbank generated TL 23,436 million in economic value in 2016, up 22% compared to the previous year.
Stakeholder-Supported Value Creation
Executing its banking activities in pursuit of value added-oriented projects, Akbank generated TL 23,436 million in economic value in 2016, up 22% compared to the previous year. Payments made by the Bank to the employees, community investments, the government, investors and suppliers as well as the distribution of the economic value generated by Akbank in cooperation with various stakeholder groups are presented in the table below:
Economic Value Generated and Distributed (TL million) 2014 2015 2016 Direct Economic Value Generated 17,588 19,212 23,436 a) Revenues 17,58 8 19,212 23,436
Economic Value Distributed 13,250 14,580 17,148 b) Operating costs 2,130 2,496 2,467 c) Employee wages and other benefits 1,485 1,671 1,799 d) Payments to providers of capital 8,333 9,303 11,613 e) Payments to the government 1,292 1,096 1,252 f) Community investments 10 13 16
Economic Value Retained 4,338 4,632 6,289 a) Gross revenue in the Bank’s income statement is taken into consideration (interest income, fees and commissions collected, dividend income, commercial profit-loss and other income). b) Covers all operating costs of the Bank, excluding employee expenses. c) Covers employee wages, bonuses, and all payments made to the government on behalf of employees. d) Covers dividends distributed to investors and all interest expenses of the Bank in the given year. e) Covers all taxes paid to the government. f) Covers donations to charities and expenses for various culture-arts events.
Note 1: Provisions for non-performing loans are not included in the calculation of the Economic Value Retained. Note 2: This table is based upon Akbank’s consolidated financial statements. Therefore, these figures also include consolidated subsidiaries.
SUSTAINABILITY REPORT 2016 17 About Akbank
CONFIDENTIAL SUBSIDIARY STRUCTURE
Akbank is marching steadily toward its corporate goals with robust strides thanks to its strong shareholding structure.
Akbank was founded on January stake in Akbank – corresponding performance in 2016 is published 30, 1948 as a private-capital to 9.9% of the Bank’s share in the Akbank 2016 Annual Report. commercial bank and it continues capital – to a large number The Akbank 2016 Annual Report to operate successfully in the of potential buyers that were can be reached at the link below: same area today. Back in 2011, predetermined via an accelerated Akbank stock traded on Borsa equity offering in March 2015. http://www.akbank.com/yatirimci- Istanbul (BIST) with a free float Prior, Citigroup Inc. had divested iliskileri/yatirim-bilgileri/sayfalar/ ratio of 31%. Citigroup Inc. a stake corresponding to 10.1% faaliyet-raporu.aspx announced its decision to focus of Akbank’s share capital in May on its core business activities 2012. After these Citigroup share Akbank’s Level 1 American and exit minority interests in sales, Akbank’s free float ratio Depository Receipts are traded other companies due to ongoing stands at 51.1%. on the OTC market in the USA. capital planning initiatives. Our shareholder structure as of Citigroup finalized the sale of its Detailed information on the December 31st, 2016 is shown in Bank’s operations and financial the pie chart.
H.Ö. Sabancı Holding A.Ş., Affiliated Institutions and Individuals Free Float 48.9% 51.1%
Our Subsidiaries
Akbank’s direct and indirect subsidiaries and our shares as of December 31, 2016 are presented below:
Direct and Indirect Subsidiaries Area of Operations Share (%) Country of Operations Akbank AG Banking 100.00 Germany AkLease Financial Leasing 99.99 Turkey AkSecurities Stock Exchange 100.00 Turkey Brokerage Services AkAsset Management Portfolio Management 100.00 Turkey
* Akbank’s Board of Directors has resolved to liquidate Akbank Dubai Limited, the Bank’s wholly-owned subsidiary active in the Emirate of Dubai, and to open a representative office at the same location.
SUSTAINABILITY REPORT 2016 18 About Akbank
AKBANK’S COMPETENCY-ORIENTED ORGANIZATIONAL PLAN
The Bank’s latest organizational chart is presented below. As of December 31, 2016, there are 11 Executive Vice Presidents reporting to the CEO. The Board of Internal Auditors, Internal Control and Compliance Unit, and the Risk Management Department report directly to the Bank’s Board of Directors.
Chairwoman of the Board of Directors, Executive Board Honorary Chairman Consultant to the Board of Directors, Member Executive Board Member Board Member SUZAN SABANCI DİNÇER CEM MENGİ EROL SABANCI
Board of Internal Chairman of the Board of Risk Management Department Auditors Directors, Executive Board ŞEBNEM MURATOĞLU EYÜP ENGİN Member HAYRİ ÇULHACI Internal Control and Compliance Unit SAVAŞ KÜLCÜ*
Legal Counsel CEO HASAN ESEN HAKAN BİNBAŞGİL
Corporate- Human Credit Credit Financial Commercial Investment Consumer Direct SME Resources and Monitoring and Technology and Allocation Coordination Treasury Banking & Private Banking Banking Banking Strategy Follow Up Operation Banking AHMET FUAT K. ATIL ÖZUS KERİM ROTA C. KAAN GÜR ARİF TOLGA BÜLENT OĞUZ BURCU EGE İLKER LEVENT AYLA İSFENDİYAROĞLU** ULUTAŞ*** CİVELEK YÜCE GÜLTEKİN ALTINTAŞ**** ÇELEBİOĞLU**
* Dalga Öztürk vacated the position as Head of Internal Control and Audit as of September 17, 2016. Savaş Külcü was appointed as Head of Internal Control and Audit as of the same date. ** As of July 1, 2016, the “Private Banking Department” was separated from the Retail and Private Banking Business Unit and integrated into the Corporate and Investment Banking Business Unit. As of the same date, the Corporate and Investment Banking Business Unit was renamed as “Corporate-Investment & Private Banking Business Unit” while the Retail and Private Banking Business Unit was renamed as the “Retail Banking Business Unit.” *** Orkun Oğuz resigned from his position as Executive Vice President – Direct Banking on July 19, 2016 and was replaced by Tolga Ulutaş on September 19, 2016. **** Appointed to this position after Turgut Güney’s resignation from his duty as Executive Vice President – Technology & Operations on January 31, 2017.
SUSTAINABILITY REPORT 2016 19 About Akbank
PRODUCTS AND SERVICES CROWNED WITH AWARDS
Akbank sees its national and international awards as positive feedback and continues to move forward with its successful product development initiatives.
Steadily improving its product Brand Finance The Banker and service quality as part of World’s Top 500 Most Valuable “Best Bank in Turkey” Award its continuous improvement Banking Brands – 2016 Ranking “Best Technology Project of the philosophy, Akbank was deemed – The Most Valuable Banking Year in the API Category” Award worthy of numerous awards in Brand in Turkey for the Fifth “Best Private Banking Overall in 2016 thanks to its innovative Consecutive Year Turkey” Award approach. The Bank sees its national and international Euromoney Global Finance awards as positive feedback “Best Bank in the Middle and “Best Mobile Banking in Western and continues to move forward Eastern Europe” Award Europe” Award with its successful product “Best Bank in Turkey” Award “Best Bank in Turkey” Award development initiatives. “Best Private Banking Overall in “Best Exchange Supplier in Turkey” Award Turkey” Award Akbank was recognized with the “Best Private Banking Overall in following awards in 2016: Turkey” Award
World Finance “Best Bank in Turkey” Award
SUSTAINABILITY REPORT 2016 20 About Akbank
Steadily improving its product and service quality as part of its continuous improvement philosophy, Akbank was deemed worthy of numerous awards in 2016 thanks to its innovative approach.
EMEA Finance Architecture Excellence Awards Turkish Public Relations “Best Bank in Turkey” Award “SOA (Service Oriented Association (TÜHİD) Gold “Best Syndicated Loan Architecture) Vision for Compass Public Relations Corporation in Central and Corporate Services” Award Awards Eastern Europe” Award Gold Compass Award in “Culture “Best Borrower Finance Stevie International Business & Art” Category Corporation” Award Awards One Gold, Five Silver and Five Private Sector Volunteers MasterCard Bronze Awards Association (ÖSGD) “Gönülden “Best Customer Value of the Ödüller” Program Year” Award Brandon Hall Human Resources “Best Volunteering Project” Award Excellence Awards Extel European Investor “Best Education Technologies” Relations Survey Bronze Award “Best CFO, Best Bank Investor Relations Team in Turkey” Award Crystal Apple Awards Two Crystal Apple, One Silver and SAP Awards One Bronze Awards “Corporate Knowledge Management Project of the Year” Award
SUSTAINABILITY REPORT 2016 21 About the Report
SUSTAINABILITY REPORT 2016 22 About the Report
OUR APPROACH TO REPORTING
The sustainability reporting initiative Akbank has conducted for eight years aims to test the Bank’s sustainability performance while offering benchmarking opportunities for stakeholders within its sphere of influence.
G4-22 Scope of Report Based on Reader-Friendly Report Layout G4-23 Akbank’s Priorities The Akbank 2016 Sustainability G4-26 Akbank is the first bank Report was designed with a G4-27 to publish a Sustainability more reader-friendly layout to Embracing a multidimensional Report in accordance with GRI facilitate stakeholder access sustainability approach as standards in the Turkish banking to information. This Report a globally recognized brand, industry. The Bank has prepared makes use of data compilation Akbank aims to present the its Sustainability Reports in methods that were employed in sustainability-related progress it accordance with the GRI G4 previous years’ reports. Further makes to its stakeholders via the “Comprehensive” Reporting explanations are provided where annual sustainability reporting Option since 2014 in keeping new and different methodologies initiative it has conducted since with its continuous improvement are used. 2009. Bolstering its financial and philosophy. The Report’s content operational business processes and scope are based on the with efficiency-oriented projects Bank’s primary business areas while remaining steadfast to its and corporate goals. deep-seated corporate culture, the Bank abides by ethical principles under all circumstances while striving to minimize the environmental and social impacts of its operations. Under this approach, the Bank presents the sustainability-related initiatives it has undertaken between January 1, 2016 and December 31, 2016 to its stakeholders in this 2016 Sustainability Report.
SUSTAINABILITY REPORT 2016 23 About the Report
SCOPE AND FRAMEWORK OF THE REPORT
G4-22 G4-23
Akbank releases the 2016 Sustainability Report to present the social, environmental and economic progress it made between January 1 and December 31, 2016 to its stakeholders.
Executing its Option of the GRI G4 Reporting Integrated Reporting Approach operations in keeping Principles, the next-generation that Entails the Global Compact reporting framework. A GRI Index Executing its operations in with its continuous is provided at the end of the keeping with its continuous improvement Report to facilitate easy access improvement philosophy, Akbank philosophy, Akbank for the Bank’s stakeholders to continued its tradition of using continued its the Bank’s performance reporting an integrated reporting concept tradition of using an within the scope of the social, in the 2016 Sustainability Report integrated reporting environmental and economic GRI that also includes the progress concept in the 2016 indicators. Akbank has made pursuant to its Sustainability Report commitments under the United Akbank’s Third Initiative under Nations Global Compact (UNGC). that also includes the the G4 Reporting Framework A UNGC Index that allows easy progress Akbank has As the first bank in Turkey to access to information regarding made pursuant to its publish a sustainability report in four elements of UNGC (labor, commitments under accordance with GRI standards, human rights, environment, and the United Nations Akbank’s 2016 Sustainability anti-corruption) and the related Global Compact Report represents the Bank’s 10 principles is provided at the (UNGC). third report in the GRI G4 end of the Report. Reporting Framework. Version G4 of the GRI Sustainability Akbank has conducted Akbank, which formulates all Reporting Guidelines and the sustainability reporting in line business processes in line with its Turkish application booklet is with the G4 Reporting Framework sustainability approach, releases available at the link below. of the Global Reporting Initiative the 2016 Sustainability Report to (GRI) for eight years. The Bank present the social, environmental https://www.globalreporting.org/ aims to test its sustainability and economic progress it resourcelibrary/Turkish-G4-Part- performance through this effort, made between January 1 One.pdf offer benchmarking opportunities and December 31, 2016 to its https://www.globalreporting.org/ for stakeholders within its sphere stakeholders. In keeping with the resourcelibrary/Turkish-G4-Part- of influence, and expand the practice of the past two years, Two.pdf sustainability culture in Turkey. the 2016 Sustainability Report was prepared in accordance with the “Comprehensive” Reporting
SUSTAINABILITY REPORT 2016 24 About the Report
REPORT SCOPE AND BOUNDARY
G4-17 Executing its operations in line Stakeholder Dialogue Enhances G4-22 with the principle of unconditional Quality of Reporting Akbank’s 2016 Sustainability customer satisfaction, Akbank Important and priority matters Report focuses on operations of effectively manages risks related to the Bank’s corporate Akbank T.A.Ş. in Turkey. While stemming from geographic and strategies in addition to the figures in the “Our Distinctive operational differences. The Bank major issues within Akbank’s Employees” section of the Report continues to develop products stakeholder dialogue were are inclusive of Akbank’s Malta and services under identical assessed as part of the process Branch personnel, the Report’s standards throughout the entire to set the content for the Akbank scope does not include the service network, spanning every 2016 Sustainability Report. impacts stemming from the corner of Turkey. The Bank attained significant Bank’s overseas operations, joint levels of increased value- ventures or suppliers. Generated In this Report, the phrases added in terms of business and distributed economic value “Akbank T.A.Ş.,” “Akbank,” “our processes thanks to stakeholder tables that include financial Bank,” “the Bank,” “We/us” all dialogue. Detailed information statements reflect consolidated mean Akbank T.A.Ş. unless stated on selection of material issues figures. otherwise. and stakeholder dialogue is available in the “3. Our Approach Scope of Report Focused on Inclusiveness, Materiality and to Sustainability” section of Akbank’s Primary Domestic Accountability the Report. Prepared with Operations While the process of preparing contribution from almost all units The Akbank 2016 Sustainability the content of Akbank of the Bank, the final version of Report covers the operations Sustainability Report 2016, this Report has been approved of the Bank’s Head Office in we used two international by the Corporate Governance Istanbul as well as 841 Akbank standards as our bases. The Committee and Board of branches. first one of these standards Directors of Akbank. is the “AA1000 Stakeholder Engagement Standard” devised by Accountability, a UK-based organization. AA1000 APS is a globally recognized standard that is based upon the principles of Inclusiveness, Materiality and Accountability. The second one is the GR4 Sustainability Reporting Guidelines of the Global Reporting Initiative.
SUSTAINABILITY REPORT 2016 25 Our Approach to Sustainability
SUSTAINABILITY REPORT 2016 26 Our Approach to Sustainability
OUR SUSTAINABILITY VISION, STRATEGY, AND COMMITMENTS
In order to realize its sustainability vision, Akbank aims to successfully manage significant and material environmental, social, ethical, and economic risks and opportunities that arise in its products, services and operations.
G4-26 Our Sustainability Vision Core Priority: Economic Growth G4-27 Our sustainability vision is to of Turkey and Customers Akbank sees its annual become the leader in Turkey and Differentiating from the sustainability reporting initiative one of the leading institutions in competition with its sound conducted in line with GRI the world. financial fundamentals and Principles as a conduit to report mutual interaction-based on its efficiency-oriented efforts Our Sustainability Strategy relationships with stakeholders, in a more systematic manner In order for Akbank to reach its Akbank’s sustainability strategy while creating a new corporate sustainability vision, we aim to can be summarized as: supporting communication channel for efficiently manage significant the economic growth of Turkey stakeholder dialogue. Seeing and material environmental, and the Bank’s customers; sustainability initiatives as an social, ethical, and economic delivering products and services opportunity to foster stakeholder risks and opportunities that that raise society’s standard of dialogue, the Bank engages arise in our products, services living while adhering to a code stakeholders in its sustainability and operations. By performing of ethics and providing secure goals using corporate a materiality analysis, we banking; and minimizing the communication platforms and identified the material issues environmental impact of its makes improvements to business that our stakeholders expect operations. processes in line with the good performance from the Bank feedback it receives. and that are required for the While implementing this Bank to succeed. We created strategy, our aim is to improve Sustainability Reporting: An a sustainability strategy by our performance day by day, Effective Tool for Stakeholder identifying related risks and following roadmaps we devise Dialogue opportunities and started to for each and every significant Akbank sees the sustainability implement this strategy. and material issue and making report, which the Bank is commitments to this end. publishing for the eighth time this year, as an effective channel for stakeholder dialogue. Issued annually, the report shares with the public at large the contribution of stakeholders in the Bank’s business processes.
SUSTAINABILITY REPORT 2016 27 Our Approach to Sustainability
OUR SUSTAINABILITY VISION, STRATEGY, AND COMMITMENTS
A Holistic Sustainability The Committee was established functions and our purchasing Approach Covering the Entire in 2009 with the name “Corporate departments internalize Organizational Structure Governance and Social sustainability by integrating The Corporate Governance Responsibility Committee” environmental and social Committee (CGC), which directly (CGSRC). In early 2012, the elements into their own processes reports to the Board of Directors, “remuneration” task was also and products. Environmental is the highest executive post given to the Committee and loans for corporate and SME within the Bank that deals with thus its name was changed customers and environmental sustainability related matters. to “Corporate Governance, and social criteria applied to our Responsible for ensuring that Remuneration and Social suppliers are the results of the sustainability efforts are Responsibility Committee” policies that we implement within carried out in a holistic manner (CGRSRC). In early 2013, the framework of our holistic throughout all business units “nominating candidates” was approach. In addition, there are within the Akbank organization, included in the Committee’s tasks various significant and material the Committee also has an and thus the name was updated issues handled by related oversight function. Akbank’s as “Corporate Governance departments of Akbank within International Advisory Board, Committee” (CGC). the scope of our general business comprised of experts who have management. These cover issues well-respected accomplishments The Committee meets at least such as employee satisfaction, in their respective fields, twice a year. Among the items ensuring equal opportunities also adds value to the Bank’s in the 2016 agenda were the for all employees, customer sustainability vision. (The analysis of the Bank’s current satisfaction, information security, International Advisory Board position in terms of sustainability, and employee volunteering. is discussed in more detail assessment of future steps, These issues are managed by in Corporate Governance at climate change strategies and related departments and have Akbank.) action plan, entrepreneurship, an important role in the Bank’s training and social responsibility sustainability strategy. Employee Full Compliance Target projects as community satisfaction and customer The Committee is responsible investments. satisfaction are monitored and for ensuring compliance with these are among the key success Akbank’s Corporate Management Effective Reporting Process indicators for our executive Principles; monitoring the under the Leadership of management. operations of the Investor Sustainability Team Relations and Sustainability The holistic management A Sustainability (Corporate Department; determining, approach set forth by the Social Responsibility) Team conforming accordance of Corporate Governance composed of representatives and evaluating ethical values; Committee covers issues such from most of the business units creating a transparent system as integrating environmental, in Akbank and operating under to identify, evaluate and train social and ethical aspects into the leadership of the CSR Sub- suitable candidates for the Board our products and services with Group performs the sustainability of Directors; and working on a strategic view and developing reporting process that feeds related policies and strategies. sustainability policies. One Akbank’s annually issued The Chairman and the majority of example is that our departments Sustainability Report. the members of the Committee performing core banking are independent Board Members.
SUSTAINABILITY REPORT 2016 28 Our Approach to Sustainability
Our Priority Topics in the The Topics Prioritization Study Control,” “Compliance with Anti- Sustainability Reporting carried out by the Akbank Bribery and Corruption Policy,” The Corporate Social Corporate Social Responsibility “Ethical Banking,” “Employee and Responsibility Sub-Group Sub-Group, in keeping with Human Rights,” “Environmental under the Investor Relations stakeholder opinions, identified and Social Risk Management and Sustainability Department the topics of Corporate in Lending,” “Sponsorship,” and coordinates the process Governance, Sustainable “Employee Satisfaction” as of prioritizing topics to be Profitability and Growth, second tier priorities for both included in the Bank’s 2016 Reduction of Carbon Emissions, Akbank and its stakeholders. Sustainability Report, which Secure Banking, and Customer As a result, we focused on the is prepared according to the Satisfaction as those with the Bank’s related initiatives and “comprehensive” option of the highest priority both for Akbank added the “Risk Management G4 Version of GRI. The Working and the Bank’s stakeholders. and Legal Compliance” and “Our Group conducted a survey that As a result of this effort, the Community Investment” sections asked the Bank’s Sustainability sections “Corporate Governance to the 2016 Sustainability Report. Organization and stakeholders at Akbank,” “Value Added to In addition to the sustainability to rank by importance the Customers,” “Our Operations reporting, Akbank also designed topics that form the basis of G4 and the Environment,” and “Our the prioritization of topics study Reporting Guidelines. Based on Approach to Sustainability” were as a guide for internal corporate the feedback received, it came added to the 2016 Sustainability sustainability initiatives. up with the prioritization analysis Report. The priority-setting presented below that informed study revealed that “Effective the reporting process. Risk Management and Internal
Akbank 2016 Sustainability Report Topics Prioritization Study G4-18
Effective Risk Management and Internal Control Corporate Governance Sustainable Profitability and Sponsorship Compliance with Anti-Bribery and Growth Corruption Policies Ethical Banking Carbon Emissions High Employee Employee and Human Rights Satisfaction Customer Environmental and Social Risk Secure Banking Management in Lending Satisfaction
Career Development and Innovative Products Training and Services Facilitating Access to Employee Volunteering Financial Services Environmentally-friendly Products and Services Employee Awareness Saving Paper and Middle Stakeholder Dialogue Technological Wastes Equal Opportunity
Sustainability in Supply Chain Low
Impact on Akbank on Impact Low Middle High Priorities for Stakeholders
SUSTAINABILITY REPORT 2016 29 Our Approach to Sustainability
OUR SUSTAINABILITY VISION, STRATEGY, AND COMMITMENTS
Akbank keeps its employees informed via various internal communication channels and conducts sustainability training for the staff.
Akbank’s Sustainability Management Model
BOARD OF DIRECTORS (BoD)
CORPORATE GOVERNANCE INTERNATIONAL ADVISORY BOARD COMMITTEE (IAB) (CGC)
OUR STAKEHOLDERS INVESTOR RELATIONS AND OTHER RELATED UNITS OF THE SUSTAINABILITY DIVISION BANK (IRSD)
CORPORATE SOCIAL RESPONSIBILITY SUB-GROUP (CSR Sub-Group)
SUSTAINABILITY (CSR) Team
Awareness Training for employed at the Akbank to increase the awareness of Employees branches that span the entire branch employees, the Bank Placing great importance on country. administered sustainability engaging the Bank’s staff in its training to its field employees corporate sustainability goals, Continuous Training Activities in serving in every corner of Akbank keeps its employees Line with the Global Compact Turkey. As a result of these informed via various internal The more prominent such efforts, 2,985 employees in communication channels channels include classroom 2012, 1,274 employees in 2013, while also carrying out training and e-learning programs 1,082 employees in 2014 and 91 sustainability training activities as well as the corporate portal. employees in 2015, for a total of for its personnel. Field work is Thanks to the classroom 5,432 employees, received basic conducted for staff members training sessions organized sustainability training. As part
SUSTAINABILITY REPORT 2016 30 Our Approach to Sustainability
The Sustainability Approach e-learning program has been completed by 17,144 employees since its launch in 2011.
of this applied training effort senior vice presidents annually. its Supplier Management Policy, based on the 10 principles of the Criticisms and suggestions are Akbank supports supplier firms United Nations Global Compact, assessed as feedback and help in complying with the principles participants were educated inform the content development stipulated in the United Nations particularly in sustainability process. Global Compact. The Bank gives management initiatives in priority to vendors who employ banking. There is a “Corporate Social more environmentally friendly Responsibility” section of the and socially sensitive systems in Another comprehensive corporate portal, to which purchasing services and products classroom training instituted employees have full access, as part of its procurement by Akbank on this subject is in the report. As part of this strategy. Akbank pays utmost the Sustainability Approach effort, the related section was attention to using transparent training that is mandatory enriched with a wide variety procurement processes that for all new employees of the of contemporary information, comply with international quality Bank. This training aims to from the Bank’s sustainability standards. arm new employees with basic approach to its corporate social sustainability awareness through responsibility projects. We Akbank boasts a robust portfolio a training package the content of present information on volunteer of suppliers. Nearly 50% of the which is custom-designed by the efforts and opportunities in companies within the Bank’s Bank. the “Volunteering” section on supplier portfolio signed our internal communication declarations committing to Sustainability Approach Training portal. In addition, the Bank’s comply with Akbank’s principles Completed by 17,144 Employees sustainability initiatives are also and policies while conducting The Sustainability Approach shared with the employees via their operations. Continuously e-learning program has corporate TV screens located auditing its supplier firms to been completed by 17,144 in Akbank branches as well as ensure their compliance, the employees since its launch in through e-mail messages. Bank helps suppliers to operate 2011. In an attempt to increase in compliance with Akbank’s the awareness on Akbank’s Fifty Percent of Suppliers principles and policies. sustainability initiatives Committed to Complying with within the Bank, the Akbank Akbank’s Principles Sustainability Report published Managing its relationships with in light of the GRI Guidelines is suppliers that operate in diverse shared with all managers and business segments pursuant to
SUSTAINABILITY REPORT 2016 31 Our Approach to Sustainability
OUR SUSTAINABILITY VISION, STRATEGY, AND COMMITMENTS
Engaging stakeholders in its sustainability goals, Akbank has the necessary communication channels to inform its stakeholders regarding the Bank’s commitments.
Our Sustainability Commitment
Engaging stakeholders in its sustainability goals, Akbank has the necessary communication channels to inform its stakeholders regarding the Bank’s commitments.
Subject of 2016 Status Evaluation Our Commitments Commitment Financial Performance Sustainable Differentiated from the competition with its sound capital Akbank aims to diversify its lineup of products profitability and position, Akbank maintained its sustainable financial and based on customer needs and expectations and growth operational performance in 2016. ensure the sustainability of the Bank’s financial and operational success.
Sustainability Management Roles and We officially included related responsibilities into the job In coordination with the Investor Relations and responsibilities definitions of Sustainability Team leader and its members. Sustainability Department, the Bank aims to The Bank took the necessary steps to include sustainability formulate action plans to guide the Akbank in the performance evaluation criteria of team members. sustainability strategy and to implement them by way of the Sustainability Team.
Sustainability in the Nearly 50% of the companies within the Bank’s supplier Akbank plans to secure from the Bank’s suppliers supply chain portfolio signed declarations committing to complying declarations of commitment to comply with with Akbank’s principles and policies as well as with the UN Akbank’s Code of Ethics and sustainability Global Compact. policies.
Employee awareness As of year-end 2016, the Bank delivered sustainability Akbank intends to leverage advances in approach awareness training to its employees via the education and training technologies to deliver custom-designed classroom sustainability training course. more comprehensive and creative sustainability training to stakeholders. Dialogue with Akbank maintains fresh stakeholder dialogue via a large Akbank aims to increase stakeholder engagement shareholders number of platforms. These include Live Broadcasts; Akbank and further improve operational efficiency. For You Meetings; Agricultural Fairs; Breakfast with the CEO events; Motivational Activities for Employees; Exclusive Events for the Customer in Various Segments; Corporate TVs; Bank of Mobile Activities; Volunteer Initiatives; Customer Satisfaction Surveys; Akbank Branches; Akbank Call Center; Contact Us Website; Social Media (1.5 Million Followers in Total); Customer Relationship Manager (CRM) Activities in Various Segments; Leaders’ Summit; E-Mail Notifications; Customer Business Development Meetings; Akbank Analyst and Investor Days; SME Informational Meetings; Akbank Art Center Events; Media, Advertising and Promotional Campaigns; Workshops; among other events. Corporate Governance, Risk Management and Legal Compliance Transparent The Investor Relations and Sustainability Division, in Embracing the principle of developing mutual corporate conjunction with the Bank’s senior executives, participated trust-based relations with shareholders as well management in a total of 17 investor conferences in Turkey and abroad in as current and potential investors, Akbank is 2016 and met with nearly 250 international investor funds committed to strengthening the Bank’s corporate and four rating agencies. governance in terms of accountability.
Information Akbank continuously carries out educational initiatives Seven percent of overall technology investment security to raise information security literacy among employees to at Akbank in 2016 was geared toward security. create a staff that has a higher level of awareness of this In addition to capital investments, the Bank also key issue. undertook initiatives related to complying with laws, rules and regulations, ensuring cyber security, and engaging in technology risk management.
SUSTAINABILITY REPORT 2016 32 Our Approach to Sustainability
Our Customers Customer Akbank strives to deliver excellent service quality at every Akbank plans to continue improving its products satisfaction point of contact with the customer. To this end, the Bank and services in pursuit of unconditional customer focuses on listening to, understanding and empathizing with satisfaction. the customer and generating quick, personalized solutions. Leveraging the experience it has gained while serving customers, the Bank constantly improves itself and strives for the better in pursuit of developing products and services that will make a difference. Thanks to the changes made to the Bank’s customer satisfaction systems and processes, the average time of resolution, tracked on the basis of each individual customer, was reduced from three days to two days. Meanwhile, service quality compliance increased from 60% to 90% and the rate of resolution at the first point of contact jumped from 65% to 90%.
Environment-friendly Akbank obtained a new USD 110 million facility from the Akbank aims to contribute to environmental products and EBRD in 2016 to finance renewable energy and energy sustainability by extending loans to energy services efficiency projects. conservation and renewable energy projects.
Environmental Akbank’s Loan Appraisal Supervisors are charged with Akbank intends to raise the environmental and and social risk effectively managing risk in the Bank’s lending processes, social risk management awareness among all management in loans including environmental risks. employees involved in lending processes. Innovative products As of year-end 2016, Akbank Direct serves over 3 million The Bank aims to continue using an innovative and services to customers through the internet and mobile channels. approach and maintaining a competitive edge in facilitate access to technology. financial services. Our Employees Employee The Bank continued to carry out initiatives to ensure the Akbank aims to properly identify employee Engagement sustainability of employee engagement in 2016. Akbank is perception of the workplace in various keenly aware of the relationship between happy employees dimensions through periodically conducted and high corporate performance. The Bank believes in Employee Engagement Surveys and take action increasing loyalty through awareness of employees’ feelings based on personnel feedback. and opinions, their expectations, staff priorities regarding human resources and management policies, and their areas of satisfaction and dissatisfaction.
Training Akbank employees attended a total of 867,785 hours of Conducting its business activities in line with training in 2016, corresponding to nine business days of the principle of continuous improvement, training per employee. Akbank aims to contribute to the personal and professional development of the Bank’s employees via internal training programs. Equal opportunity In the evaluation conducted based on 22 criteria within Akbank strives to ensure the sustainability of the scope of the Equal Opportunity Model Project, Akbank operational efficiency by providing an equal received FEM certification. In addition, the Bank became opportunity-based professional environment for signatory to the Women’s Empowerment Principles (WEPs), Bank personnel. a private sector venture by the United Nations that aims to empower women to take part in all sectors and all aspects of economic life. Environmental Impacts of Our Operations Our environmental Akbank continued to successfully undertake initiatives to Akbank plans to minimize the environmental impact minimize the environmental impact of its operations in 2016. impact and natural resource utilization of its operations in the coming period. Carbon emissions Akbank continued to attain major reductions in carbon Akbank plans to continue actively supporting emissions from its operations in 2016 owing to the energy initiatives to combat climate change in the efficiency projects it has implemented. coming year. Investing in Communities Community Monochrome, Contemporary Artists Prize Exhibition, and Our goal in this initiative is to reach out to investment through the Incident of Art exhibitions were presented to Turkish active entrepreneurs in these cities, support sponsorships arts enthusiasts at Akbank Art Center in 2016. In addition, them, create role models out of them, and as part of “Young Volunteers” project, 500 young people contribute to the development of a region-based participated in volunteer activities in 2016; subsequently, entrepreneurship ecosystem. they were afforded the opportunity to attend the Imany Concert at the Jazz Festival. Akbank, which positions itself as an exemplary corporate citizen, plans to continue lending sponsorship support to qualified projects in education, youth, entrepreneurialism, culture-art and environment in the next period. Launched as a joint venture of Akbank and Sabancı University, the Center of Excellence in Finance (CEF) commenced operation in 2016 by conducting various conferences, training programs, seminars and research reports. As part of the CaseCampus Program launched in conjunction with Endeavor, the Bank convened young people who chose entrepreneurship as a career path and organized conferences and training sessions in Istanbul and in Izmir. Akbank also partnered with Endeavor in 2016 and launched the “Smartstartup Cities” Program in Ankara and in Izmir.
Community Under the “Akbank Volunteers” system, the Bank carried Akbank embraces the principle of encouraging its investment out volunteering projects in every corner of Turkey with the employees to volunteer in community projects. through employee support of Volunteer Leaders from across the country. volunteering
SUSTAINABILITY REPORT 2016 33 Our Approach to Sustainability
STAKEHOLDER ENGAGEMENT
G4-24 Dialogue Platforms Based on Trust and G4-25 Transparency G4-26 The Bank implements a multi-channel stakeholder G4-27 communication strategy that leverages the Believing that stakeholder dialogue will boost its strength of the Bank’s long-standing corporate value-added creation, Akbank’s stakeholder map structure and the latest advances in information includes all companies and organizations that are technology. The Akbank website (www.akbank. impacted by its operations, products or services com) and the regularly issued Annual Report and and that directly or indirectly influence the Bank’s Sustainability Report are the main platforms used performance. Understanding that stakeholder to inform the stakeholders. In addition, Akbank also dialogue constitutes the core principle of corporate benefits from multi-faceted dialogue platforms responsibility, the Bank conducts its sustainability specially designed for each stakeholder group initiatives in light of stakeholder expectations in order to receive feedback from and establish and opinions. The Bank used state-of-the-art dialogue with them. technology in stakeholder dialogue processes and created numerous corporate communication channels.
Examples of the Bank’s dialogues with key stakeholders are presented in the table below:
Stakeholder Groups and Dialogue Platforms Our Approach Examples
Shareholders, Investors, Analysts General Assembly Meetings and Minutes, Face-to- The dialogue mechanism that was Akbank’s Corporate Social Responsibility Face and E-Dialogue (Meetings and Conferences in developed to ensure continuous Sub-Group within the Investor Relations and Turkey and Abroad, Presentations and Briefings via communication between the Bank Sustainability Department informs investors on Webcast and E-mail), Public Disclosure Platform, management and shareholders is based the Bank’s environmental, social and economic Annual Report, “e-Manage: Corporate Governance upon the principles of “transparency, sustainability performance both in writing and and Investor Relations Portal” of the Central accountability, and regular information verbally. Registry Agency, Capital Markets Board of Turkey dissemination”. (CMB) Corporate Governance Principles Compliance Report Press Releases, Investor Presentations Employees Quarterly live TV broadcasts by the Bank’s CEO, live Akbank is aware that high motivation and Messages of the senior management and broadcast of “New Generation Akbank Meetings,” satisfaction levels among its employees the Bank’s quarterly performance results are Breakfast with the CEO events, Akbank Volunteers are determinant in ensuring long-standing communicated first-hand to employees via the program Akbank Volunteers Program, Employee business performance. The Bank takes quarterly-held live TV broadcast by the CEO, Satisfaction Survey, Corporate Performance heed of regularly eliciting its employees’ an initiative that started in 2012. This project System, Meetings (e.g. Regional Directorates and opinions and expectations and tries to aims to keep internal synergy dynamic, improve Customer Relationship Management Performance bring related practices to life. Akbank bilateral communication, and increase all Reviews, Leaders’ Summit, Leaders of the Future established effective channels of employees’ motivation to reach common goals. Meeting, Management Trainee Cocktail Party, communication to ensure effective internal Participants from various departments of the Cocktail Party with New Managers, Award communication. Bank are provided the opportunity to exchange Ceremonies Brainstorming Sessions), Coaching opinions with Akbank’s CEO at monthly system, Corporate Portal “For Us,” Suggestion “Breakfast with the CEO” meetings. As part System, BANKSİS (Union of Bank and Insurance of the “Akbank Volunteers” program, volunteer Employees), Akbank Retirement Fund, Ethics Line, leaders across the entire country carry out E-Bulletins, E-mails, Corporate TVs social responsibility projects that create value for the locations they live and work in. Customers Akbank For You Meetings; Agricultural Fairs; Customer satisfaction is Akbank’s first Akbank is in constant contact with customers Exclusive Events for Direct Deposit Customers and priority. Opinions and expectations of via 26 different Akbank accounts in social One-to-One Segment Clients; Iftar Dinners for SME customers guide the Bank in developing media. Our agents, specially trained for this and Agriculture Banking Customers; SME Export products and services. In order to sustain media and offering services 24/7, respond to Academy Seminars; Akbank Academy of Family customer satisfaction, Akbank implements more than 7 thousand comments monthly, Businesses; Investor Seminars for One-to-One numerous practices: information security, offer solutions to complaints, and record the Segment Clients; Exclusive Events for Corporate responsible marketing communications, suggestions. Banking Clients, Exclusive Events and Sponsorships innovative and environmentally friendly for Technology Enthusiast Customers Customer products, and supporting customers in Satisfaction Surveys; Akbank Branches; Akbank business development. Call Center; Contact Us Website; Social Media (1.5 Million Followers in Total); E-Mail Notifications; Customer Business Development Meetings; SME Informational Meetings; www.kobilersizinicin. com Website; Akbank Art Center Events; Media, Advertising and Promotional Campaigns; E-Mail Messages; and Corporate TVs
SUSTAINABILITY REPORT 2016 34 G4-24 Our Approach to Sustainability G4-25 G4-26 G4-27
International Financial Institutions One-to-One and Joint Meetings, Audits, Loans that Akbank secures from A process was initiated for establishing Negotiations, Reports, Presentations international financial institutions such Environmental and Social Management as IFC, EBRD, and EIB to be lent out to Systems to be implemented in SME loans under customers mostly carry the conditions of the securitization transaction amounting to being environment-friendly and supporting USD 250 million, which was performed with development. Akbank establishes dialogues the International Finance Corporation (IFC). with these institutions with the aim of With this system, Akbank adapts its SME building management systems to monitor loan processes to the environmental and environmental and social performances of social standards defined by IFC. Thus, Akbank its customers pursuant to the conditions carries its pioneering activities in the field of attached to these loans. sustainability even further. Public Authority and Regulators Public-Private Sector Cooperation Workshop, Akbank is committed to thoroughly Meetings, Forums and Conferences, Various complying with all related laws and Working Groups, Verbal and Written Notifications, regulations in all its activities. Akbank Declarations, Press Releases, Compliance Reports participates in forums, conferences and working groups with the aim of closely following the agenda, identifying trends, and developing and adapting its products and services in line with expectations of customers and legislators in a timely manner. In addition, the Bank closely monitors developments related to the banking industry and presents its opinions on legislation amendments to related authorities. Suppliers Supplier Identification Forms, Meetings, Akbank Akbank expects its cooperating suppliers As a result of informing the companies in its Code of Ethics to act in accordance with the Bank’s supplier portfolio on Akbank’s Code of Ethics principles and values. The Bank also and sustainability policies, approximately 50% supports their development through of them declared their commitment to comply continuous information transfer. with Akbank’s principles and policies. University Students Activities Organized and Supported Directly by Caring about university students’ The CaseCampus Program, launched jointly Akbank, CaseCampus Entrepreneurship Program, requests, opinions, and expectations, with Endeavor Turkey for university students Akbank Thinking Club, Information Meetings, Akbank continuously improves its who dream of starting their own business, Youth Banking, Campus Branches, Brochures and investments in support of their education celebrated its first graduates in 2016. During Promotion Campaigns and development. Akbank cooperates the program, interview simulations were with student clubs to support university conducted at Boğaziçi University. These mock students in entering the business world and interviews with young people were performed to further introduce Akbank to those who as if they were part of an actual recruiting will graduate soon. process; subsequently, feedback was provided to the participants. Certification programs were administered at the Center of Excellence in Finance (CEF) for high school and university students who are contemplating careers in the finance industry. Local Community Activities Akbank organizes and participates (e.g. Akbank strives to support numerous The Bank held “Akbank for You Meetings” in 19 “Akbank for You Meetings”), National Sponsorship, activities that offer social benefits and to cities and shared the economic developments Volunteer Activities, Culture&Art Activities, Press reach local communities in areas where it in the world and in Turkey, met with local Releases operates. authorities to hear local problems and find solutions, and exchanged opinions. Akbank volunteers across the nation carry out social responsibility projects that create value for the locations they live and work in. The Bank sponsored local organizations such as the Adana Orange Blossoms Festival, Milas Olive Harvest Festival and Gaziantep Children’s Festival. Non-Governmental Organizations Cooperation in Social Engagement Practices, Akbank pays attention to improving While developing its social investment projects, Sponsorships, Meetings, Conferences, Study Groups cooperation with non-governmental the Bank cooperates with non-governmental organizations, being in continuous organizations. Akbank invites representatives communication with them, taking their of NGOs to its events and receives their opinions and expectations about its opinions on related issues. In addition, Akbank activities into consideration. participates in the working groups of the non- governmental organizations and provides input. Media Press Conferences, Press Releases, Daily Economic Akbank aims to maintain continuous Akbank senior management and relevant Bulletins dialogue with national and international managers regularly meet with prominent media, to inform them promptly and figures of the media community and exchange accurately through press releases, and to opinions at press conferences organized share opinions with opinion leaders at press to discuss industry trends and the Bank’s conferences. products and services.
SUSTAINABILITY REPORT 2016 35 Our Approach to Sustainability
STAKEHOLDER ENGAGEMENT
G4-24 G4-25 G4-26 G4-27
Akbank prioritizes support to local and international initiatives and trade associations in the areas of economic, environmental and social sustainability.
Memberships in Associations and Cancun and Durban Climate Platform and Turkish Unions, Signed Initiatives Communiqués drawn prior to Leaders Group on Climate Conducting its operations Conference of the Parties to Change established by REC in alignment with the Bank’s the United Nations Framework and TÜSİAD social responsibilities since the Convention on Climate Change Advertising Self-Regulatory day it was founded, Akbank to make a call of action to Board (RÖK) prioritizes support to local and governments from the private Association of Advertisers international initiatives and sector (RVD) trade associations in the areas Private Sector Volunteers of economic, environmental and Endeavor Assessment Association (OSGD) social sustainability. (Support for Active The Banks Association of Entrepreneurs) Turkey (TBB) Our memberships in associations Turkish Ethics and Reputation Study Group of Sector’s Role and unions, as well as the Society (TEID) on Sustainable Growth of The local and global initiatives we Financial Literacy and Banks Association of Turkey signed within the framework of Inclusion Association (FODER) Public Relations Association sustainability are grouped below: The Prince of Wales’s of Turkey (TUHİD)
Corporate Leaders Group on Corporate Governance European Association of Climate Change (CLG) Association of Turkey (TKYD) Communication Directorates Interactive Advertising Bureau Turkish Industry and Business (EACD) (IAB Turkey) Association (TÜSİAD) European Union Green Banking Association of Advertisers Turkish Industry and Business in the Mediterranean Project Istanbul Foundation for Association (TÜSİAD) Interbank Card Center (BKM) Culture and Arts (IKSV) Sustainable Development Task United Nations Global Istanbul Stock Exchange Force Compact (UNGC) Sustainability Index (ISESI) Visa Colorful Horizons Project The European Association Carbon Disclosure Project of Communication Directors (CDP) (EACD) TÜYİD Investor Relations Women’s Empowerment Association Principles – WEPs Credit Cards Registry Office (KKB) Association of Corporate Communicators (KİD)
SUSTAINABILITY REPORT 2016 36 Our Approach to Sustainability
The greatest evidence of Akbank’s commitment to universal principles of human rights, labor conditions, environment, and anti-corruption is its signature under the United Nations Global Compact (UNGC).
UN Global Compact - Compliant Bank also sponsors events that Events Bringing Together Finance Business Processes are in line with its corporate Industry Thought Leaders Rights, labor conditions, policy and strategy. environment, and anti-corruption FT Turkey Summit 2016 is its signature under the With the capability to make The Financial Times Turkey United Nations Global Compact coordinated use of various Summit was held in Istanbul (UNGC) – one of the important communication channels thanks under the sponsorship of Akbank corporate social responsibility to a sound corporate structure, and Turkish Airlines in partnership initiatives worldwide. With Akbank’s Senior Management with the Turkish-British Business this signature, Akbank takes attends President and Cabinet Council of the Foreign Economic responsibilities such as respect level meetings regarding Relations Board of Turkey for human rights, providing a safe such issues as the country’s (DEİK). Organized around the and healthy work environment, economy and financial affairs theme “New Turkey,” the summit protecting the environment, as part of the Bank’s leader included discussions on Turkey’s offering sustainable values and communications. A good example economic and political position benefits to employees and the of Akbank’s contributions to in the aftermath of the election society by means of policies and public policy is the initiative and the impacts of the election. practices that cover transparent of Ms. Suzan Sabancı Dinçer, The summit’s opening addresses corporate management. Thus, Chairwoman of the Board of featured David Gardner, Akbank pledges to fulfill its Directors of Akbank, as a Member International Affairs Editor of the duties in creating more humane of the Board of Trustees of Financial Times. globalization. Chatham House, in promoting Turkey’s economic and strategic Stars of Export – Export Leveraging Corporate Know-How role internationally through this Promotion Awards and Experience to Contribute to platform. Held by Dünya newspaper Public Policy in partnership with DHL It is an utmost priority for Akbank Activities Sponsored in 2016 and Vodafone, the “Stars of representatives to participate Continuing to make uninterrupted Export - Export Incentive in forums, conferences and social investments in support of Awards” competition has been working groups as a speaker or Turkey’s sustainable development organized under the Bank’s an observer in order to make the efforts, Akbank was an active main sponsorship since 2002. Company’s banking industry participant and official sponsor Companies that won awards also experience and know-how of numerous significant events received a certificate and a gift available to stakeholders. The and activities to benefit Turkey. from Akbank.
SUSTAINABILITY REPORT 2016 37 Our Approach to Sustainability
CLIMATE CHANGE MANAGEMENT UNDER CORPORATE GOVERNANCE COMMITTEE GUIDANCE
Akbank regularly updates its risk management approach in the face of the adverse impacts of climate change on human activities.
Closely monitoring international Risk and Opportunity Oriented Proactive Risk Management strategies to combat global Assessment Approach Approach climate change at the UN level, Climate change, which is Akbank continually updates Akbank’s climate change solution caused by increasing levels of its risk management approach strategies are formulated by greenhouse gas emissions in the in the face of the adverse the Corporate Governance earth’s atmosphere, poses major impacts of climate change on Committee, which directly risks for societies today. Heat human activities. By embracing reports to the Board of Directors. waves of increasing frequency a proactive approach to risk In addition, the International and intensity, floods, droughts, management, the Bank strives Advisory Board contributes to the and extreme weather conditions to effectively manage climate Bank’s vision while the Investor due to climate change have change-based risks and turn Relations and Sustainability the potential to have negative threats into opportunities. Department ensures coordination impacts on industries such as and management of the issue forestry, fishing, agriculture, Akbank closely monitors the within the Bank. healthcare, tourism, and changes in laws and regulations construction, among others. related to energy efficiency and Other departments such as Climate change laws, rules and renewable energy, which gain Branch Operations, Architectural regulations that have been in prominence in Turkey by the Works, and Personnel enacted or are likely be put day, with its specialized staff, Management are responsible for into effect in Turkey and its and carries out comprehensive collecting data, including energy trading partners pose the risk compliance efforts. In addition, consumption and implementation of legal incompliance and extra Akbank continues to offer of energy saving practices. investment costs to fight climate products and services in energy change. It is anticipated that efficiency and renewable energy companies with large amounts of to corporate clients on relatively greenhouse gas emissions such favorable terms. In addition, as those in the transportation the Bank measures the carbon and aviation industries will be emissions stemming from its impacted by the aforementioned operations and business travel, laws and regulations. and undertakes initiatives to minimize these emissions.
SUSTAINABILITY REPORT 2016 38 Our Approach to Sustainability
Akbank launched numerous initiatives to measure, track and reduce the greenhouse gas emissions resulting from electricity and fuel use in Akbank buildings and from fuels used in employee business and training related travel.
Following its participation in Akbank shares its climate change Akbank shares the Carbon Disclosure Project strategies and greenhouse gas its climate change in 2009, the Bank began emissions data with stakeholders strategies and undertaking more comprehensive by way of the annually-published and systematic studies to Sustainability Report as well greenhouse gas measure the greenhouse gas as the CDP Report. The Bank emissions data with emissions (in equivalent carbon submitted the sixth Report to stakeholders via the dioxide terms) resulting from the the CDP Secretariat in 2015 and annually-published Bank’s operations and to take plans to release the seventh Sustainability Report measures to reduce this emission report in 2016. as well as the CDP level. A number of initiatives Report. were launched geared toward “Climate-Friendly” Products and measuring, tracking and reducing Services the greenhouse gas emissions Akbank has implemented a resulting from electricity and two-pronged strategy against fuel use in Akbank buildings and global climate change. The from fuels used in employees’ Bank undertakes innovative business and training travels. projects aimed at reducing the Akbank launched a system to greenhouse gas emissions from systematically monitor and its operations while focusing on report energy consumption minimizing the environmental and greenhouse gas data of its impacts of customer activity by branches. Thanks to this system, offering “environment friendly” Akbank began to track the data products and services. for business units. (Detailed information on energy and carbon management is presented in the “Our Operations and the Environment” section of this Report.)
SUSTAINABILITY REPORT 2016 39 Corporate Governance at Akbank
SUSTAINABILITY REPORT 2016 40 Corporate Governance at Akbank
Akbank fully complies with all the obligations of being a publicly listed company.
The pioneering actor in the • Buy back its founders’ shares RELATIONS WITH Turkish banking industry with (2005). SHAREHOLDERS its successful financial and • Sign the United Nations Global operational performance oriented Compact (2007). AND INVESTORS toward long-term strategic • Publish UN Global Compact goals, Akbank has embraced Communication on Progress Executing its business activities a professional corporate Report (2010). to create value for the savings governance approach. • Pioneer in Supporting the of its shareholders, Akbank Implementation of the Carbon fully complies with all the Akbank’s corporate governance Disclosure Project (CDP) in obligations of being a publicly practices are assessed under the Turkey (2010). listed company. The Bank’s goal following categories: • Publish a Sustainability in this approach is to solidify its Report in Accordance with GRI position as an attractive and • Relations with Shareholders Standards (2010). predictable investment vehicle • Public Disclosure and • Participate in the Carbon for current shareholders and Transparency Policy Disclosure Project (CDP) Global potential investors. • Duties, Responsibilities, and 500 Reporting (2010). Authorities of the Board of Investor Relations and Directors Akbank is committed to abiding Sustainability Department • Relations with Stakeholders by the Corporate Governance In order to manage and Principles as set forth by the strengthen relations with The Bank of Firsts and Pioneers Banking Law, Capital Markets both existing and potential Relations with stakeholders are Board, and Turkish Commercial shareholders, Akbank established covered in another section of the Code. The Bank pays utmost an Investor Relations Group in Report; the other three subjects attention to the implementation 1996. The Investor Relations and have been detailed in this section. of these principles. Akbank is in Sustainability Department (IRSD) compliance with the mandatory replies to all questions that In Turkey, Akbank is the first bank provisions of the Corporate are not related to commercial to: Governance Principles as secrets, taking the principle of • Publicly announce its dividend published by the Capital Markets equality into consideration and policy (2003). Board in the Official Gazette No. thus it is ensured that the Bank • Announce its Corporate 28871 dated January 3, 2014. management and shareholders Governance Principles in its are in continuous communication. annual report (2003). In addition, there is a Financial • Announce its Corporate Accounting and Shareholders Governance Principles in its Transactions Directorate at website (2004). Akbank to facilitate monitoring the rights of shareholders.
SUSTAINABILITY REPORT 2016 41 Corporate Governance at Akbank
Effective Information Disclosure Annual Report is submitted to the OUR PUBLIC Processes for Shareholders shareholders through our Bank’s The Investor Relations and website, at the Shareholder DISCLOSURE Sustainability Department Transactions Subdivision, as POLICY is responsible for presenting well as at the Ankara, Adana the Bank’s performance and and Izmır Commercial Branches Akbank’s Public Disclosure Policy strategies accurately and three weeks before the General was formulated by the Board of transparently to existing Assembly. In addition, matters Directors within the framework and potential investors. IRSD stipulated in article numbered of the Capital Markets Board’s also plays an active role in 1.3.1 of the Capital Markets Corporate Governance Principles facilitating protection and use of Board Corporate Governance in accordance with capital shareholders’ rights – especially Principles are disclosed to the markets laws and regulations, and the rights of getting information shareholders on the Bank’s then approved and announced and examining the data. The website correspondingly with to the public on Akbank’s Department informs investors the announcement for the website. The Board of Directors on environmental, social and General Assembly Meeting of is authorized and responsible for economic sustainability. Shareholders. informing the public, as well as for monitoring, supervising, and Strong Participation in According to the Akbank Articles improving the public disclosure International and Domestic of Association, shareholders policy. Investment Conferences may assign another shareholder In 2016, the Investor Relations as a representative with a right The Financial Coordination and Sustainability Department to vote. Shareholders may and International Reporting attended a total of 21 domestic exercise their right to vote either Department, Investor and foreign investor conferences in person or through another Relations and Sustainability together with executive person or shareholder at General Department, and the Corporate management of Akbank and had Assemblies. Media outlets are Communication Department, meetings with approximately permitted to attend and cover which collectively serve as the 250 international investment the Bank’s General Assembly Shareholder Relations Unit funds and four rating institutions. Meetings. under the Financial Coordination Also, more than 500 questions business unit, are assigned to posed by investors and analysts Mechanisms for Shareholder oversee and monitor all issues via telephone and e-mails were Representation at the General pertaining to public disclosures. answered. Assembly General Assemblies are held at Strong Information Disclosure Information on the General Akbank Head Office (Sabancı Channels for the Public at Large Assembly meetings is announced Center) in a way that increases Akbank Website, material in the Turkish Trade Registry participation of shareholders, disclosures, Akbank branches, Gazette, in a national newspaper, avoids injustice, and allows for Call Center, Akbank IR Apps iOS on the corporate website, at participation with a minimum social media (Twitter, Facebook), the Public Disclosure Platform cost for shareholders. Those who media, advertising and promotion www.kap.gov.tr, e-Governance have the right to participate in campaigns, Annual Report and Corporate Governance and the Bank’s General Assembly Sustainability Report are the Coordination and Internatıonal meetings may also vote via the most important platforms to Reporting on the Central Registry Electronic General Assembly inform the Bank’s shareholders. Agency www.mkk.com.tr, and on System. In addition, the e-MANAGE: the e-GEM Electronic General Corporate Governance and Assembly System at least three Investor Relations Portal of weeks before the event. The the Central Registry Agency is also utilized in disseminating information to stakeholders.
SUSTAINABILITY REPORT 2016 42 Corporate Governance at Akbank
The primary duties of Akbank’s Board of Directors include making the strategic decisions that strike the optimal balance between risk, growth and return, and pursuing a rational and cautious risk management approach that safeguards the long-term interests of the corporate organization that it represents.
AKBANK BOARD OF January 13, 2016 stating that the meeting. Negotiations of the Aydın Günter satisfies all the Board are routinely recorded by DIRECTORS independence criteria was a secretary selected among the submitted to the Board of members or by someone hired Structure of the Board of Directors; the Board of Directors outside the Bank. Minutes must Directors resolved to refer Aykut Demiray be signed by attendees and if As of year-end 2016, there are to the Capital Markets Board as there are opponent members, three executive and seven non- an Independent Board Member the reason of opposition to the executive members on Akbank’s nominee. resolution must be stated in the Board of Directors. The Chairman minutes which must be signed by of the Board of Directors of the The terms of the Members of the voter. Board Members are not Bank is also an Executive Member the Board of Directors who were entitled to have weighted votes with responsibility in all areas. elected in March 2016 will expire and/or to veto resolutions. Each in 2017. All Members of the Board member of the Board of Directors The Bank’s Board of Directors of Directors attend meetings is entitled to one vote. had three Independent Members unless excused. during 2016. Roles and Responsibilities of the There is a secretariat for Board According to the Capital Markets informing and communicating The core duties of Akbank’s Board’s Corporate Governance with the Members of the Board of Board of Directors include making Principles, Audit Committee Akbank. The Board meets at least the strategic decisions that strike Members of banks are considered 12 times a year. Board Members the optimal balance between Independent Members of the pay attention to participating risk, growth and return, and Board of Directors. Hayri Çulhacı in and contributing to every pursuing a rational and cautious and Yaman Törüner, Members meeting. The Chairman consults risk management approach of the Audit Committee, are other Board Members and the that safeguards the long-term Independent Members. The CEO to define the agenda of interests of the corporate other Independent Member of the meeting. Information and organization that it represents. the Bank’s Board of Directors documentation on the agenda are is Aydın Günter, who satisfies presented to the Members of the Board of Directors: The Body all the independence criteria of Board prior to the meeting. that Sets the Strategic Roadmap the Capital Markets Board and The Board of Directors sets the who was ratified for a one-year In order for the Board of Directors Bank’s strategic objectives, term by the shareholders at to make a resolution, one more determines the human and the Ordinary General Assembly than half of its members must financial resources Akbank Meeting on March 31, 2016. attend the meeting. Therefore, will need, and supervises the The report of the Corporate all resolutions are made with the performance of the management Governance Committee dated majority of members attending team. The Board of Directors
SUSTAINABILITY REPORT 2016 43 Corporate Governance at Akbank
The Board of Directors approves Akbank’s annual budget and strategic plan, closely monitors actuals in comparison to the budget, receives information on deviations, and reviews the adopted resolutions.
oversees the compliance of financial indicators on the basis the accounting and reporting the Bank’s activities with laws of customer, branch, business systems. The Committee and regulations, the Articles of unit, and the overall Bank through convenes at least four times a Association, internal regulations the Management Information year. and policies. System. Corporate Governance The Board of Directors operates The Bank’s administrative Committee: The Body in a transparent, accountable, structure and organization is Responsible for Social fair, and responsible manner. given in the third section of Responsibility Initiatives The Board plays an active role the Articles of Association. The CGC was established in in maintaining an efficient This section explains roles 2009 with the aim of monitoring communication between the Bank and capacities of the Board compliance with corporate and shareholders as well as in Members and other executives: governance principles and resolving potential disputes. Roles and responsibilities of the supervising the implementation Board of Directors are subject of corporate social responsibility Akbank’s Highest Approval Body to the provisions of the Turkish activities, under the name of The Board of Directors approves Commercial Code and Banking Corporate Governance and Social Akbank’s annual budget and Law as well as to the provisions Responsibility Committee in strategic plan, closely monitors of the Articles of Association. 2009. In 2013, the “nomination” actual comparisons with the task was also given to the budget, receives information Board of Directors Committees Committee and its name was on deviations, and reviews the In Akbank’s Board of Directors, changed to the Corporate resolutions made. If there are there are various committees Governance Committee. The any significant deviations in for different tasks. In addition Committee is responsible macroeconomic conditions to such committees, Board of for ensuring, monitoring and compared to the budget Internal Auditors, Internal Control communicating compliance with estimates, the budget is revised and Compliance Division, and Risk Akbank’s Corporate Management and resubmitted to the Board of Management Department directly Principles; monitoring the Directors for approval. The Board report to the Board of Directors. operations of the Investor monitors strategic goals, budget Relations and Sustainability targets and actual figures on a Audit Committee: The Bank’s Department; creating a daily, weekly or monthly basis, Utmost Auditing Body transparent system to identify, depending on the nature of the The Audit Committee helps evaluate and train suitable issue. In addition to the hard copy the Board in the performance candidates for the Board of reports it receives, the Board of supervision and oversight Directors; and working on related of Directors has access to the functions; oversees the policies and strategies. Members Bank’s financial statements, functioning and adequacy of of the Remuneration Committee various financial and non- the internal systems as well as are responsible for monitoring,
SUSTAINABILITY REPORT 2016 44 Corporate Governance at Akbank
The Corporate Governance and Social Responsibility Committee was established in 2009 to monitor compliance with Corporate Governance Principles and oversee the implementation of corporate social responsibility activities.
auditing, and reporting Asset-Liability Committee: The duties at Akbank are determined remuneration operations on Authority that Sets the Bank’s within the scope of authorization behalf of the Board of Directors. Funding Strategies granted by the General Assembly. The Committee convenes at The Asset-Liability Committee The Bank’s compensation policy least twice a year. The chairman (ALC) is chaired by the CEO and complies with the regulations and majority of the members of is responsible for daily liquidity of the Banking Regulation and the Committee are Independent and cash management. ALC Supervision Agency BRSA and Board Members. meets at least twice a week to Capital Markets Board CMB. The discuss the latest developments compensation policy has been Credit Committee: The Key in the economy and the markets. documented in writing, presented Authority in Lending Processes It is also responsible for devising to the shareholders at the General The Credit Committee is a loan investment, pricing, and funding Assembly, and published on the assignment resolution center that strategies. Bank’s website. These payments examines loan offers which have are determined annually by the passed loan processes of the Rights of the Board Members Board of Directors. The Banking General Directorate in terms of Implementing a remuneration Code limits loans to be granted compliance with legal regulations, policy in line with the regulations by Akbank to the Board Members banking principles, the Bank’s of the Banking Regulation and and they are not granted any goals and loan policies. Supervision Agency (BRSA) loans against this mandate. and the Capital Markets Board Executive Risk Committee: The (CMB), Akbank has documented International Advisory Body that Determines the Risk in writing the compensation Board: Evidence of Akbank’s Policy principles for the Members of the International Vision The Executive Risk Committee Board of Directors and senior Chaired by Ms. Suzan Sabancı (ERC) is responsible for creating executives. It has also shared this Dinçer, the Akbank Advisory risk policies, identifying methods information with stakeholders on Board is responsible for closely to measure and manage risks, the Bank’s website. monitoring global and local setting and monitoring suitable economic developments under the risk limits. All risk policies are put Remuneration Policy in Line with stewardship of its experienced down in writing and integrated BRSA and CMB Regulations members. The Board, which into the long-term overall According to the Akbank Articles consists of 12 members, convened strategy of the Bank. The Risk of Association, Members of the twice during 2016. At these Committee convenes at least Board of Directors are paid a meetings, the latest trends in the four times each year. monthly fee or remuneration is global economy, main trends in fixed by the General Assembly. monetary and finance policies, Salaries paid to board members and current opportunities for the who assume various prescribed Turkish economy were discussed with a global perspective.
SUSTAINABILITY REPORT 2016 45 Risk Management and Legal Compliance
SUSTAINABILITY REPORT 2016 46 Risk Management and Legal Compliance
FORWARD-LOOKING RISK MANAGEMENT APPROACH
Akbank formulates its risk policies in consideration of the Bank’s long-term strategies, corporate goals, and scope of operations.
The Board of Directors is charged Risk Management in Line with changes, innovations, with the primary responsibility Corporate Goals arrangements and models in of establishing and executing Akbank formulates the Bank’s internationally-recognized risk Akbank’s Risk Management risk policies in consideration management principles. All System. The Board of Directors, of long-term strategies, of the analyses, calculations, with the help of the Audit corporate goals and the scope of simulations, scenarios, stress Committee and the Executive operations. The Bank has adopted tests and other efforts play a Risk Committee, assess current a multi-faceted approach that determinant role in the strategic developments and determine encompasses risk management, decisions made by our Bank’s Akbank’s risk categories. legal and regulatory compliance, Board of Directors and senior and environmental-social executive management. The Risk Management, Internal impact analysis in making Control and Compliance Division major decisions such as capital Sustainability-oriented and the Board of Internal Auditors allocation, portfolio/investment Pluralistic Risk Perception units, which report directly to choices, and launching new The issues below come to the the Board of Directors, perform products or initiatives. fore when sustainability in risk coordination and assessment management is considered: functions to ensure the expected Risk Management Models at efficacy. International Quality Standards Market Risks The Bank constantly reviews Market risks emerging due to Risk Management Policies the risks that it may be exposed fluctuations in foreign exchange Bolstered by Employee Support to during the course of its rates, interest rates, and market All Akbank employees are operations and makes the prices of stocks are measured by responsible for compliance necessary policy, procedure or using internationally-recognized with policies and strategies application updates as required models. Limits are identified drawn by the Board of Directors, by prevailing circumstances. Such for the Bank or Group and for effective management of updates are performed by closely compliance with these limits is risks related to their own areas following and implementing continuously monitored. of operation, and for taking necessary actions to comply with the legislation.
SUSTAINABILITY REPORT 2016 47 Risk Management and Legal Compliance
FORWARD-LOOKING RISK MANAGEMENT APPROACH
Liquidity Risks Reputation Risks Operational Risks Akbank has created a liquidity Reputation risk is a significant Operational risks are another management framework for risk in terms of sustainability. major risk category with maintaining required liquidity All Akbank employees, notably great significance for banking resources to perform legal the Board of Directors, are held activities. In general, operational liabilities in a timely manner responsible for the management risks result from overlooking to depositors, creditors and of this risk. As part of the errors and irregularities due to institutions that it has made management of this risk, policies failures in the control of business a commitment to. The Bank and practices were identified processes, Bank management’s protects itself from any negative (including areas such as full and employees’ failure to act impacts to be caused by liquidity compliance with legislation, in accordance with the time risks thanks to its widespread establishing and exercising and conditions, errors and deposit base, robust capital trust-based relationships with irregularities in IT systems, structure, and varied foreign stakeholders, efficient and fast or natural disasters. Akbank borrowing sources. In addition, solutions to customer complaints) effectively employs mechanisms extra liquidity sources are made and these have been put down in such as differentiated and available with limits allocated writing. Akbank Ethical Principles diversified controls, insurance, by the Central Bank, BIST Repo serve as an important guide in and limits to manage operational Market and the Settlement and this sense. risks, which are related to all Custody Bank as well as the risk categories led by legal liquid securities portfolio in hand. New Products and Services Risks compliance and reputation risks. By being cautious in foreign In addition to risks identified for The Operational Risk Committee, currency liquidity management, existing products and activities, which was established at the reserves sufficient to fulfill risks that may arise from senior management level in 2011, liquidity needs are maintained. development of new products discusses subjects that are of and services are also assessed. importance from operational Management and monitoring of Potential financial, operational, risk perspective and actively market and liquidity risks had legal and reputation risks of monitors the actions taken at its an increasingly important role newly-developed products or regularly-held meetings. in the cautious and farsighted services; methods to be used in management of the probable measuring and managing these Legal Risks negative impacts of the crises risks; and control mechanisms Operating flawlessly in terms and challenges experienced to be established are identified of compliance with legislation recently in the global economy. with contribution from related is a fundamental priority for us. departments of the Bank. Since For following legislation related Credit Risks 2011, the New Product and to the banking sector and All banking products with Service Evaluation Committee adaptation to developments and credit risks (such as credit comprising managers of all changes, various departments placements and commitments departments involved in product work to ensure compliance in the to customers, letters of credit) development, decides on the Bank’s system infrastructure, are managed with assistance suitability of all product and business processes, rules, and from cautious loan policies and service in terms of legislation and limits. procedures in Akbank. In all technical qualifications. When credit transactions, loan quality the Board of Directors approves (credit worthiness), purpose of the extensive risk assessment use, and environmental and social made by the Committee, effects are assessed via an necessary actions are taken for internal customer rating system. risk management. Sector, customer, loan type, customer segment-based limits are identified in order to monitor credit risks.
SUSTAINABILITY REPORT 2016 48 Risk Management and Legal Compliance
INTERNAL CONTROL AND INTERNAL AUDIT SYSTEM
By way of the Bank’s internal control system, Akbank aims to protect its assets; conduct its operations effectively and efficiently, in compliance with laws, rules and regulations; and establish a reliable and holistic accounting and financial reporting system.
By way of the Bank’s internal In line with this understanding, to see whether the internal control system, Akbank aims effectiveness of the internal controls are in conformity with to protect its assets; conduct control system is ensured by the laws and internal legislation operations effectively and using certain mechanisms and are performed effectively efficiently, in compliance with including: and efficiently. The Division laws, rules and regulations; and • Identification of functional also works to establish control establish a reliable and holistic differences, separation of the systems in required areas. accounting and financial reporting functions of marketing and system. The responsibility of operations, Leveraging a state-of-the art managing the system in a way • Documentation of job technology infrastructure in that creates value-added for the definitions and specific its operations, the Internal Bank falls on all employees, led by responsibilities in the control Control and Compliance Division the Board of Directors. The Audit system of each employee at plays a key role in managing Committee’s function is to aid the every level, the Bank’s operational, legal Board of Directors in its activities • Documentation of all workflows and reputational risks. The this arena. and checkpoints throughout Internal Control and Compliance the Bank via Business Process Division works in cooperation Strong Control and Audit Management (BPM), with other departments in Infrastructure • Establishment of information strengthening Akbank’s internal The most important component systems that are in compliance control environment, as well of an effective internal with the volume and quality of as expanding and improving control system is the control the Bank’s activities, the internal control activities. environment. The control • Establishment of effective and The Division makes significant environment at Akbank is comprehensive communication contributions to minimizing defined within certain rules and channels, hearing suggestions losses from operational risks, and designed to contribute to all of employees on processes and performing operations effectively business processes. In addition, activities, and implementing and efficiently, in compliance arrangements on issues such them. with applicable laws, rules as organization structure, and regulations, and within an Ethical Principles, distribution of INTERNAL CONTROL AND effective control environment. authority and responsibility are COMPLIANCE DIVISION also performed. Our employees The Division performs periodic Five-Pronged Internal Control are encouraged to identify and controls in branches and the and Legal Compliance Processes assess risks that may prevent the Head Office Departments to The Internal Control and Bank from reaching its targets measure the effectiveness and Compliance Division conducted and are continuously reminded adequacy of internal controls its operations under five main of the importance of control performed during the execution categories in 2016. As part activities in managing such risks. of the Bank’s operations and of Head Office and process
SUSTAINABILITY REPORT 2016 49 Risk Management and Legal Compliance
INTERNAL CONTROL AND INTERNAL AUDIT SYSTEM
controls, the Division executed in the systems comprising Board of Internal Auditors: controls of core banking and the information technology Coordinator of Internal Audit Bancassurance functions; infrastructure. In addition, the Activities performed assessments on Division checked authorizations Internal audits are performed in a control points of designed in core banking applications way that covers all units, processes business flows; and ensured the against job descriptions and and operations and are planned implementation of measures that reviewed the audit trails for with a risk-oriented point of view. comprise the internal control critical transactions. Examples of the work done by process. These include functional the Board of Internal Auditors separation of tasks, sharing of The Internal Control and include evaluating the compliance authorities and responsibilities, Compliance Division is also of branch transactions with the design of systems controls, charged with administering provisions and liabilities stated in control of financial reporting and coordinating the audit and internal and external legislation systems, integrity and reliability regulation relationships. Under investigating; analyzing and of accounting and reporting this function, audit processes assessing existing or probable, systems, and supporting the were coordinated from a single actual or potential risks resulting business units’ projects. source while the Division played from negligence, misconduct, fraud a guiding and effective role in and the like in our branches, units In addition, the Division tracking the audit results. The and affiliates; and eliminating risks. conducted on-site or centralized Division also facilitated the routine branch controls to coordination, within the Bank, Audit Mechanisms against Claims evaluate the control environment; of correspondence with official of Irregularity review the control activities; and bodies such as the Banking The Board of Internal Auditors to reduce errors and flaws that Regulation and Supervision examines the reliability and may result in operational risks. Agency (BRSA), Central Bank integrity of the Bank’s information of Turkey (CBT) and the Capital systems and checks whether As part of compliance controls, Markets Board (CMB) as well as information is accessed on time. the Internal Control and with industry associations such as It performs information security Compliance Division conducted the Banks Association of Turkey audits based upon international monitoring, oversight and control (BAT) and the Turkish Capital standards. It also expends efforts activities for internalization Markets Association (TCMA). to identify and solve probable and implementation of new The Division made significant irregularity notifications from legal regulations in the banking contributions to healthy and legal bodies (including those via legislation compliance area. The trustworthy relationships with the Ethics Line), the Bank itself, Division assessed the Bank’s the regulatory and supervisory and our customers. The Board of new product/service projects authorities and entities. Internal Auditors also investigates as well as regulatory changes and resolves all probable fraud announced for the entire BOARD OF INTERNAL AUDITORS notifications. organization from the perspective The Board of Internal Auditors is of the compliance and control responsible for conducting audits As a result of the operations of the systems. The Division also carried and evaluations to ensure the Board of Internal Auditors, findings out oversight and control tasks execution of the Bank’s activities are identified through internal regarding compliance with the in accordance with laws, rules control and suggestions are made obligations stipulated in Law No. and regulations as well as with to develop the processes, increase 5549 on Prevention of Laundering strategies and policies set efficiency, and strengthen internal Proceeds of Crime and Financing forth by the Board of Directors. systems. Furthermore, actions of Terrorism. The Board of Internal Auditors taken accordingly are actively is also charged with improved monitored. As part of information systems productivity; enhanced service controls, the Internal Control and quality; and effectiveness and Results of the operations by the Compliance Division analyzed adequacy of the Bank’s internal Board of Internal Auditors and the the warnings generated by control and risk management Internal Control and Compliance the data leakage system, and systems and corporate Division are regularly monitored performed controls on security governance processes. and evaluated by the Control parameters and authorizations Committee and Board of Directors.
SUSTAINABILITY REPORT 2016 50 Risk Management and Legal Compliance
TOTAL HARMONY WITH LEGAL LEGISLATION
Akbank executes the compliance and Financial Action Task Force, In all efforts process stemming from legal, systemic controls are made to related to product rule and regulatory changes with prevent mediating in banking promotions, sales the coordination of various units transactions for laundering and the support of all Akbank proceeds of crime, financing and marketing employees. of terrorism, and other illegal communications activities. (including As part of the Bank’s advertisements and sustainability approach, Akbank The Internal Control and sponsorships), Akbank places great importance on legal Compliance Division is also abides by generally compliance initiatives in two responsible for conducting accepted ethical rules, areas in particular: the controls regarding the transactions with high-risk privacy of personal Tight Controls for Prevention of countries in accordance with information, and Laundering Proceeds of Crime the regulations published applicable laws, rules As stipulated by international by international regulatory and regulations. banking regulations and authorities (OFAC, EU, UN, etal.). governing legislation, Akbank’s In addition, the policies and risk management pays significant procedures formulated regarding Transparent Information attention to guarding against this subject are announced to the Disclosure Policy laundering the proceeds of crime entire Bank. Akbank pays maximum attention and financing terrorism. In this while promoting and marketing context, implementation details Compliance in Product its products and services in of precautions and principles Promotions and Marketing order to avoid any loss of rights aimed to identify, rate, monitor, Communication of its customers. For instance, evaluate, and prevent potential All kinds of communication in credit card commercials risks are fulfilled by considering operations performed with the broadcast on TV, the Bank the liabilities in relation to aim of promotion and marketing makes sure that informative knowing the customer. of banking products and services subtitles are used and the size are subject to various laws and of letters as well as the flow Compliance with International regulations. Every employee who rate of subtitles is appropriate Regulatory Authority Standards communicates with customers, and legible. Akbank announces Initiatives including the Corporate the campaigns and innovations Akbank operates within the Communications Department, is regarding its products on the framework of the “Know Your responsible for the compliance of Akbank corporate website and Customer Policy” (“Know Your our communication activities with transmits them via e-mail and Customer Policy and Principles applicable laws and regulations. SMS to customers who opt for to Prevent Laundering of such communication. Pursuant Proceeds of Crime and Financing Product Promotion Efforts that to its transparent pricing policy of Terrorism”) prepared in Protect Customer Privacy and taking legal obligations accordance with national In all efforts related to into consideration, Akbank legislation as well as principles, product promotions, sales and announces to its customers regulations, and standards set by marketing communications the terms and conditions of international authorities. In line (including advertisements and all of its banking products and with the standards issued by the sponsorships), Akbank’s priority services, and information such as United Nations Security Council is to abide by generally accepted fees, commissions and interest ethical rules, privacy of personal rates, through various channels, information, laws and regulations. including the Akbank website.
SUSTAINABILITY REPORT 2016 51 Risk Management and Legal Compliance
SECURE BANKING IN LIGHT OF STATE-OF-THE-ART TECHNOLOGY APPLICATIONS
Security in banking products and Information Security Oriented The Bank’s Security Committee services can be addressed under Online Banking Service works to proactively deter two main areas: confidentiality Akbank protects its systems potential threats stemming and safety of customer using state-of-the-art from cyber security, technology information and information technology in line with the and processes, and evaluates safety. Bank’s secure banking approach; all manner of upgrading and safeguards the financial security development options. Responsibility in providing secure of its customers at the highest banking services begins as soon level; and implements additional Potential technological cyber as the product or service is sold precautions in such products as threats are managed as part and continues for the entire Internet and Telephone Banking of information security event lifecycle of it. Any negative and credit cards, including sector, management with preventative/ experience in any phase of this transaction and amount limits mitigating measures taken as cycle could result in losing a and multi-layered password necessary. customer and adversely affect requirements. our reputation and thus, the BUSINESS “secure banking” principle Identity verification security CONTINUITY is fundamental to Akbank’s is provided in Internet Banking services. services through dual-factor MANAGEMENT authentication, which is New Investments for Information also compliant with Banking In order to ensure continuity of Security Regulation and Supervision critical business processes as Ensuring confidentiality of Agency requirements. To this well as to ensure recovery of customer information is a end, the Bank provides security the system in case of failure, to requirement of the law as well elements such as Mobile prevent customer losses, and to as of our Bank’s rules and Signature and Soft OTP to maintain corporate reputation, ethical principles. Therefore, customers. Akbank also offers Akbank executes the Business only relevant and authorized Virtualcard and 3D secure Continuity Management Program. employees can have access applications for customers who This Program is devised on the to customer information and want to make online purchases basis of business continuity and transactions made using such securely. disaster management system information are regularly defined in the British Standard monitored and recorded. Using In addition, Akbank continuously Institute’s internationally customer information outside educates its customers on the recognized BS 25999 Standard the Bank is limited only to measures they can take on their and was updated in 2012 legally authorized people and own to enhance their financial following the release of the ISO institutions. security. Information aimed 22301:2012 Social Security at raising banking security Business Continuity Management Our new employees are trained awareness is announced on System standard. in information security when Akbank’s corporate website. they first start working and Business Continuity Committee: are regularly updated on the Security Committee: The A Construct for Efficiency issue throughout their careers. Ultimate Authority in Akbank’s Business Continuity Surveys are held to measure our Information Security Committee convenes twice employees’ level of awareness Akbank’s security stakeholders each year to oversee and direct in information security. In conduct monitoring and activities within the management accordance with the results prevention activities against program, while ensuring adequate of these surveys, we plan existing and potential threats resources are provided for information security awareness using internationally-accepted business continuity. Security activities and provide training tools as well as new procedures risk management proactively and information to employees on developed by Akbank, and carry defines the service disruption issues to be paid attention to. out continuous efforts to protect threats and the impacts on customer and Bank information. business operations if these threats are realized, and devises
SUSTAINABILITY REPORT 2016 52 Risk Management and Legal Compliance
plans that ensure uninterrupted Code of Ethics: Core Component Principles in their units, but operation. To this end, the Bank of Akbank Corporate Culture choose to refrain from taking defined the corporate goals, The Code of Ethics, which went actions as being part of the responsibilities and priorities into effect after the approval of same unit, to solve the problem, pertaining to the critical services the Board of Directors, governs they can use our Ethics Line. that shall be rescued in the event the behavior and conduct of The existence of the Ethics Line, of a disaster; created business Bank employees, as well as areas of practice and means to continuity plans to ensure quick their relations with persons and reach the line are announced to and accurate decision-making institutions within and outside all employees regularly via e-mail. in an emergency; and backed up the Bank. Akbank’s Code of Employees may have access to its data processing center at the Ethics is made available on the the Ethics Line any time of the Disaster Recovery Center located Bank’s website and corporate day via telephone and e-mail. in Izmir. The Bank’s business portal; all personnel also receive Callers are not required to give continuity plans are constantly obligatory e-training on these their names and if they do, the reviewed, updated and tested via principles. information is kept confidential. unannounced drills. Respect for Society and the All notifications are evaluated In order to internalize business Environment Included in the by the Ethics Line Officer continuity management Code of Ethics (an auditor assigned by the within Akbank’s corporate Last updated in 2016, the Code Board of Internal Auditors). The culture and to raise business of Ethics includes four main notification is transferred to continuity awareness across the headings. The first subject the Board of Internal Auditors organization, the Bank carries out covers our responsibility towards in cases that require examining various training and informational society and the environment in or investigation; otherwise it is initiatives. The Bank’s annual accordance with our commitment directed to the Executive Vice disaster drills are conducted with to the UN Global Compact. President (EVP) of the related high levels of participation. business unit to take necessary Notifications of Suspected actions. In accordance with the Violations of Ethical Principles disciplinary regulations, any In case of suspected violations employee found to be failing to of Ethical Principles, employees abide by our Ethical Principles OUR ETHICAL and stakeholders can notify despite all communication and BANKING Akbank’s related units within the training efforts, warnings and framework of the confidentiality measures is subject to various APPROACH principle via various channels. disciplinary actions, including discharge. A representative of a deep- Ethics Line: A Powerful Channel seated governance approach for Stakeholder Feedback Active Fight against Bribery and shaped against the backdrop of The Bank’s stakeholders can Corruption many years of experience and inform the Board of Internal The Anti-Bribery & Anti- know-how, Akbank prioritizes Auditors of suspected violations Corruption Policy, formulated compliance of its stakeholders directly at our Call Center - 444 to comply with the anti-bribery and personnel with these ethical 25 25. Such notifications can also and anti-corruption laws and principles. The Bank organizes be made through e-mail sent to regulations in effect in all various training programs [email protected]. countries in which Akbank and activities for staff and operates, with the Code of Ethics stakeholders to get acquainted If Akbank’s employees believe and professional principles, and with and adopt the Akbank that there are practices with universal rules, was approved corporate culture. contradicting to the Ethical by the Board of Directors and announced publicly.
SUSTAINABILITY REPORT 2016 53 Value Added to Our Customers
SUSTAINABILITY REPORT 2016 54 Value Added to Our Customers
Industry players that develop Our “Customer Specific” Extensive Commercial Banking fast and effective financial Consumer Banking Approach Product Portfolio solutions to meet evolving Akbank continues to be the As part of its commercial banking customer needs and expectations industry leader in consumer operations, Akbank generates gain a competitive edge in the banking with its service innovative solutions in such current market environment. approach based on customer areas as cash management, Standing out with world-class characteristics, continuous foreign trade, treasury and banking products and services, innovation in technological project finance with its specialist Akbank is focused on closely infrastructure, and extensive staff and products tailored to monitoring the prevailing trends domestic branch network. In customer needs with the aim of of today’s world and sustaining consumer banking, the Bank being the main bank and solution its competitive edge. Boasting a embraces the principle that partner of medium-sized and diversified portfolio of products each and every product and large companies. and services, the Bank invests in service developed and offered is distribution channels that benefit customer-oriented. The Bank’s The Bank serves its commercial the local economy while also consumer banking services segment clients via Commercial rolling out various innovations evolve constantly on the basis Customer Relationship Managers to facilitate easier access to of customer satisfaction and in while also offering access to financial services for every light of the expectations of more a large number of financial individual across the country. than 13 million retail customers, products and services thanks to requirements of the day, market its synergy with AkInvestment, BANKING conditions, and its social AkLease, AkInsurance, AvivaSA, responsibilities. and Akbank AG (Germany). SERVICES THAT RAISE THE Indispensable Solution Partner to Dynamic SME Banking Products QUALITY OF LIFE Corporate Clients and Services Serving nearly 6,000 corporate Akbank’s SME Banking clients as of year-end 2016, Department offers products, Akbank’s core banking services Akbank continues to be the services and solutions tailored consist of Consumer Banking indispensable solution partner of to the needs of small businesses and Private Banking services for its customers. Reorganized by the and micro enterprises. The SME retail customers as well as SME Bank in line with evolving market Banking Department continued Banking, Commercial Banking needs, Akbank Corporate Banking to offer innovative financial and Corporate Banking offered began operating under the name products and services to SMEs in light of the differentiating Corporate and Private Investment and organize informational needs of SMEs, commercial Banking Business Unit. meetings and various campaigns customers and corporate in 2016. Customer Relationship clients, respectively. In addition, In light of its restructured Managers within the Akbank Akbank’s International Banking corporate banking approach, branches serve clients in this unit provides overseas-based the Bank provides broad and segment. financing to customers. Credit structured corporate finance cards for customers in every solutions tailored to meet segment are also an important customer needs in accordance part of Akbank’s banking with international standards, services. Non-banking financial in addition to financial services and capital markets intermediation services. investment services are provided by Akbank’s subsidiaries. Thanks to the synergy created with AkInvestment, Aklease, AkInsurance, AvivaSA, and Akbank AG (Germany), Akbank’s corporate banking customers have convenient access to a wide range of financial products and services.
SUSTAINABILITY REPORT 2016 55 Value Added to Our Customers
Generational Wealth with the family wealth, diversity Telephone Banking and Call Management via Private Banking of investment products, the Center Infrastructure that and Creating Value for the Client concept of risk, the global Embraces Operational Excellence Offering Private Banking services economy, and philanthropy. Akbank designs all its operational since 2001, Akbank serves clients business processes with in this segment at seven private To render the best and highest the objective of achieving branches – five in Istanbul and quality service for clients’ operational excellence. The 444 one each in Ankara and Izmir. In pension, insurance and leasing 25 25 Akbank Telephone Branch addition, a Private Banking corner demands in addition to their and Voice Response System, is located in the Akbank Zorlu investment and other needs which allows customers to Branch and in the Bursa Fatih with a one-stop shop approach, perform a wide variety of core Sultan Mehmet Bulvarı Branch. Akbank Private Banking focuses banking transactions quickly and Aiming to provide privileged on establishing cooperation effectively, continued to be used service to clients, assist with with Group companies and by many clients in 2016. Boasting their investment decisions, maintaining the vibrant intra- one of the most state-of-the- and generate custom solutions Group synergy. Private bankers, art service infrastructures in tailored to specific clients as supported by experts and the banking sector, Akbank Call needed, Akbank Private Banking specialists from AkInvestment Center handled nearly 60 million serves individuals with assets and AKAsset Management, customer contacts in 2016. exceeding TL 1 million. constantly monitor their customers’ investment strategies A Banking Approach that Akbank Private Banking delivers and provide them with exclusive Combines Cash Management and core banking products along with solutions. Foreign Trade Services alternative financial product With a business approach that offerings to its clients with a Akbank Private Banking combines cash management greater level of specialization. continued to organize events and foreign trade services, In order to get to know clients in 2016 to come together Akbank Cash Management better, differentiate their needs, with clients and add value to and Foreign Trade Department and provide suitable solutions, their social and cultural lives delivers financial solutions for the Private Banking Department in addition to serving their the domestic and overseas generates the fastest and most financial needs. The highlights operations of the Bank’s clients tailor-made solutions to meet of these activities include a visit in an integrated manner via clients’ financial needs and to the Heinz Mack exhibition products and applications expectations while also touching at the Sakıp Sabancı Museum designed for the Corporate, their lives with culture and led by a tour guide; economy- Commercial, SME and Consumer arts related activities. Akbank themed breakfasts; a guided segments. With the vision of Private Banking works closely Contemporary Istanbul excursion; being the technology business with clients to protect the family exclusive tasting events; partner of clients, the Bank aims assets and value, assisting Family-Owned Businesses 2023 to always back customers with customers in passing these on to Conference; a conference on solutions to meet all domestic/ the next generations. The “Next international real estate markets overseas cash flow, inventory Generation Program,” launched with Knight Frank; and upper- management and financing as of year-end 2016 with the segment brand partnerships. needs, from the initial order to support of Sabancı University, the payment process. Developing is the first of its kind service in Based on the results of service packages for all parties Turkey and is designed to prepare the annual external client within the value chain of clients, the next generation for the satisfaction survey, Akbank the Cash Management and future. As part of the program, Private Banking identifies areas Foreign Trade Department Akbank meets with high school of improvement as well as contributes to the operational and college age young people to strengths to be sustained and efficiency and business educate them on such subjects takes action as necessary. processes of customers through as the responsibility that comes and innovative technology systems infrastructure and flexible customized customer solutions.
SUSTAINABILITY REPORT 2016 56 Value Added to Our Customers
ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT FOR LENDING PROCESSES
Akbank has attained significant Social Management System to Breakdown of Customer Loans by levels of increased value-added be implemented for SME loans. Industry in line with its sustainability The system currently under Akbank offers borrowing options approach that has been development at Akbank brings to customers operating in embedded in all the Bank’s the SME lending processes in line various industries for a wide business processes. The loans with the environmental and social variety of purposes, from growing extended by the Bank to clients standards defined by IFC, further sales volume to expanding into in the Corporate and Commercial advancing Akbank’s pioneering overseas markets. Banking segments undergo an sustainability practices. environmental and social risk Pursuant to the environmental The breakdown of Akbank’s assessment based on criteria sustainability policy it has consolidated cash loans by such as the source of the loan. adopted, the Bank gives priority industry as of year-end 2016 is After securing the IFC loan to projects that turn risks into as follows: facility in 2016, Akbank began opportunities during the process setting up an Environmental & of forming the loan portfolio.
Breakdown by Industry
Consumer 18.5% Automobile 4.1% (Mortgage, auto, general purpose, cash advance, credit cards) Textiles 3.9% Construction 11.1% Metal 3.8% Service 8.1% Technology 3.0% 100% Energy 7.4% Tourism 2.6% Commerce 6.1% Transportation 2.3% Chemicals 4.8%
Other 19.7% Food 4.6%
SUSTAINABILITY REPORT 2016 57 Value Added to Our Customers
ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT FOR LENDING PROCESSES
Environmental and Social Policy Assessment under the Credit Committee and Board Practices Responsibility of the Credit of Directors approval, the Since 2010, projects with a loan Preauthorization Committee and Bank began authorizing Loan sum in excess of USD 50 million Loans Business Unit Appraisal Supervisors for all and with a term of over five Our branches, the Pre-Credit loan applications submitted years are subject to Akbank Committee at the Head Office, to corporate and commercial Environmental and Social Policies. and the Credits Business Unit branches. The specialists working Project financing loans with a are responsible for the evaluation in this role, who also receive sum less than USD 50 million of loans in terms of compliance environmental and social risk are also evaluated in terms of with the policies and preparation training, assess all risks that environmental risks. With this of the required action plans. need to be evaluated in loan system, we aim to proactively Loans are approved by the Credit applications and record their and effectively manage potential Committee within the Board of analysis results in the application environmental and social risks Directors. file. and opportunities during the project, including the pre-project Engineers in the Credits Business International Financing Facilities phase. Unit make field controls both for Sustainability Lending during the evaluation of loan With the business partnerships Environmental and Social Impact applications and during execution that we establish with Assessment in Lending Processes of projects – especially those international financial Pursuant to Akbank’s requiring construction. institutions, we aim to Environmental and Social continuously offer new loan Policies, we pay due attention Local Populations’s Sensitivities opportunities to our customers that all elements stated in Are Taken into Account and contribute to economic the United Nations Global Akbank investigates relevant growth in Turkey. Loans obtained Compact are implemented by issues such as the project’s from international financial the customers that we grant compliance with EIA and local institutions such as IFC, EBRD, loans to. For instance, in line with community’s reactions to the EIB and OPIC are of environment- our social criteria, businesses prospective project as part of friendly nature and generally that are proved to employ the pre-project controls. During support sustainable development. child labor are not granted the project, main focus shifts to any loans. In accordance with issues such as compliance with In such loans, we require our our policies, considering that occupational health and safety customers to abide by a variety a project may cause severe standards. of social and environmental and important impact on performance criteria depending the environment, we request Under Akbank Environmental on the source of the loan. submission of Environmental and Social Policies, projects that In addition, we provide our Impact Assessment (EIA) allow transforming environmental customers with financing reports or proof of exemption risks into opportunities are from international sources for from EIA in financing projects given priority. Among these are affordable loans to be used in in sectors within the scope renewable energy investments, energy efficiency and renewable of the Environmental Impact waste recycling investments energy projects. Assessment Regulations. or those which reduce carbon Among projects that require EIA emissions or improve efficiency. Akbank obtained a new USD approval certificate are long- 110 million lending facility term infrastructure projects Environmental Risk Analysis of from EBRD in 2016 to finance that have a high level of impact Corporate and Commercial Loans renewable energy and energy on the environment, such as Pursuant to a practice that efficiency projects. This loan hydroelectric power plants Akbank adopted internally includes criteria for identifying (HEPPs) and highways. in 2011, aside from the loan and mitigating the environmental applications that require and social impacts of projects to
SUSTAINABILITY REPORT 2016 58 Value Added to Our Customers
be financed in their area. Akbank • Health, safety and security of the materialization of these requires borrowers from this the public at large, risks; and prevent any adverse facility to comply with both the • Protection of biodiversity, environmental or social impacts. national environmental, health • Sustainable natural resource and safety laws and regulations management and preservation The Akbank Social and and EBRD’s environmental and of cultural heritage. Environmental Management social performance criteria. • Protection of biodiversity, System consists of the following EBRD offers independent project • Sustainable natural resource three core elements: consultancy to our customers management and preservation and environmental and social of cultural heritage. • Equipping employees with compliance audits are performed prerequisite skills to measure as well. This sustainability-oriented SME customers’ environmental application, launched in risks, New IFC Loan partnership with the IFC, was • Furnishing the infrastructure A process was initiated for revised in 2016 and expanded that enables the measurement establishing Environmental and further to cover all SME Banking of environmental and social Social Management Systems to customers of the Bank as part risks in lending processes, be implemented in SME loans of the Social and Environmental • Carrying out reporting that as part of the securitization Management System. In addition, enables the measurement and transaction amounting to Akbank analyzed SME clients’ monitoring of risks. USD 250 million, which was environmental and social risks performed with the International and made major strides toward Environmental and Social Risk Finance Corporation (IFC). With raising sustainability awareness Measurement of SME Customers this system, Akbank adapts among SME customers. As part of the SEMS system its SME loan processes to in 2016, Akbank successfully the environmental and social Initiatives under the Akbank continued its infrastructure standards defined by IFC. Thus, Social and Environmental building-related efforts to Akbank carries its pioneering Management System are analyze the environmental and activities in the field of organized by the SEMS Team; social risks of SME customers sustainability even further. one person each from the SME and assess these risks Banking Business Unit and objectively within a quantifiable An Exemplary Application in the Loans Business Unit were and traceable system. The Turkish Banking: Akbank Social appointed as SEMS Officers.§ infrastructure, scheduled to & Environmental Management In addition, participation in commence operation in the System (SEMS) the SEMS teams is provided by first half of 2017, is designed Under the loan contract we the Treasury Business Unit on to centralize monitoring and signed with IFC in 2010, we matters related to funds secured tracking of SME customers’ established the Akbank Social from overseas institutions; by the environmental and social risks. & Environmental Management Legal Department on applications System (SEMS), which is of the Turkish Environmental In addition, the Bank plans to based upon IFC’s social and Laws and potential amendments move forward in its origination environmental performance to the legislation; and by the processes with the Risk Analysis standards. SEMS, a standard- Human Resources Department Center, which will be activated setting reference project in on issues concerning the Labor with the entry of assessments the Turkish banking system, Law and worker safety. The of SME CRMs into the system. addresses a variety of issues Akbank Social and Environmental This process will become including: Management System aims to quantifiable and assessable after • Environmental and social assess all environmental and the assignment of a Social and assessment and management, social risks in the SME segment; Environmental Risk score to each workforce and labor conditions, increase customer awareness SME borrower. prevention and reduction of and encourage them to take the pollution, necessary measures to avoid
SUSTAINABILITY REPORT 2016 59 Value Added to Our Customers
ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT FOR LENDING PROCESSES
Akbank will accept customers’ • Production or trade of friable established under SEMS with social and environmental risk asbestos (Use and purchase the prerequisite capabilities and scores as the deciding factor of bonded asbestos cement skills. in lending processes. The Bank sheets (cladding) containing will not originate loans to less than 20% asbestos is not The Bank plans to conduct more customers in banned industries, within the scope of this article), intensive and frequent SEMS the environmental risks of which • Trawling (a method of fishing training activities in 2017 to are deemed to be unmanageable. that involves nets longer than further raise the sustainability When originating loans to SME 2.5 meters), awareness of all employees customers in the medium risk • Production or activities that involved in SME lending process category, Akbank also aims to involve forced labor [1] or child and to equip them with the assess the loan applications in labor [2], prerequisite capabilities conjunction with measures to be • Commercial forestry activities to be able to measure the taken to minimize the risks and in tropical rain forests. environmental and social risks create an action plan. that SME customers may be Our Environmental and Social exposed to. The banned industries within the Capabilities scope of SEMS include: As part of its Social and Environmental and Social Risk • Production or trade of any Environmental Management Management product or service that can be System, Akbank prioritizes In addition to identifying and construed as illegal pursuant equipping its employees with preventing environmental and to national laws, rules and prerequisite skills to measure social risks, Akbank is also aware regulations or international and monitor SME customers’ of the importance of managing treaties, environmental risks. Akbank these risks – in terms of • Production or trade of any prepared training modules sustainability – as they arise. The product or service subject in order for each and every IT infrastructure developed by to international bans/ employee – from SME CRMs, the Bank enables the reporting of embargoes such as products who are the first point of all environmental and social risks containing pharmaceuticals, contact with the Bank in the inherent in SME Banking credit pesticides, ODS (ozone process of originating loans customers as well as measures depleting substances), PCB to SME customers, to all staff that are, or plan to be, taken to (polychlorinated biphenyl – a members who take part in the prevent these risks. The Bank’s group of highly toxic chemicals); entire evaluation process – to SEMS staff aims to track all the wildlife areas within the better assess the environmental risks that SME customers bear. scope of CITES (Convention and social risks of customers. on International Trade in Some 333 Head Office and 2,997 As part of the credit facility Endangered Species of Wild branch and regional office staff agreement with the IFC, Fauna and Flora); and products members who perform tasks Akbank intends to prepare an connected to species within the in the SME lending process annual report on the Social and scope of CITES, completed online training on the Environmental Management • Production or trade of weapons Akbank Environmental and Social System regarding loan and ammunition, Management System. originations to SME customers. • Production or trade of radioactive substances (Note: Akbank plans to embark on the [1] Purchase of medical equipment, second stage of SEMS training Forced labor is all work or service that is exacted from any person under threat of quality control equipment, and initiatives in 2017. A new online a penalty and for which the person has equipment that is deemed by training module is being prepared not offered himself or herself voluntarily. the IFC as having an immaterial to equip those personnel who [2] Child labor refers to the employment source of radioactivity or being are part of the processes of of children in any work that exploits children, interferes with their ability adequately safeguarded do the online risk measurement to attend regular school, or that is not fall within the scope of this and evaluation system to be physically, mentally, morally or socially article), dangerous and harmful.
SUSTAINABILITY REPORT 2016 60 Value Added to Our Customers
CLIMATE-FRIENDLY LOANS
Akbank uses the Bank’s own Energy Efficiency Loan by OPIC • USD 11.7 million for the 10 resources as well as borrowings In an effort to ensure the MW unlicensed solar energy from international funding sustainability of the Bank’s generation portfolio project to facilities to develop financing support for renewable energy be built in the Konya province. solutions for energy efficiency projects, Akbank signed an and renewable energy projects, agreement for a 15-year, USD Renewable energy projects which figure among the most 175 million credit facility with financed by Akbank were important areas of global Overseas Private Investment projected to generate 1,902 GWh sustainability initiatives. Corporation (OPIC), the of electricity annually and avoid
development finance institution 1 million tons of CO2 emissions in Financing Solutions for of the United States, in October 2016. Renewable Energy Projects 2014. Through this attractive Making significant contributions loan package, Akbank financed The breakdown of Akbank’s to help develop Turkey’s energy customers’ energy efficiency existing renewable energy project industry, Akbank pays close investments in addition to portfolio is presented in the table attention to environmental machinery and equipment below: impacts in the Bank’s project purchases that achieve energy financing operations. Conducting savings of at least 20% as well as Installed its business activities in line renewable energy investments in Capacity (MW) with this approach in 2015, the 2015 and 2016. Hydro 2,873 Bank undertook initiatives that became model practices in the 100% of Energy Project Wind 355 industry. Financing Goes to Renewable Geothermal 232 Energy Solar 33 Renewable Energy Investments Akbank extended project to Reduce Dependence on finance loans to renewable To ta l 3,493 Foreign Energy energy projects valued at USD Dependence on foreign energy 10+ million totaling USD 1,380 plays a significant role in the million as of December 31, magnitude of the country’s 2016. Meanwhile, the share of current account deficit, which renewable energy loans in total ranks among Turkey’s leading energy project loans rose to 37%. economic problems. As a result, renewable energy investments Akbank, one of the biggest that will reduce dependence on supporters of renewable energy imported fuels such as natural projects in Turkey, provided the gas and coal are critically following financing in 2016: important. Akbank develops • USD 166 million for the 100 MW unique financing solutions for Karakurt Dam and Hydroelectric solar energy and geothermal project to be built in the Kars energy projects, which have province, recently gained the support • USD 8 million for the 7 MW of both the public and the unlicensed solar energy government. In response to the generation portfolio project to accelerating investments in be built in the Konya province, this segment, the Bank plans to • USD 18.5 million for the 16 develop more attractive financing MW unlicensed solar energy options in terms of the maturity generation portfolio project to term and cost of the loan in the be built in the Denizli province, coming period.
SUSTAINABILITY REPORT 2016 61 Value Added to Our Customers
FINANCING SOLUTIONS FOR INFRASTRUCTURE PROJECTS
Akbank shares its deep-rooted know-how in project financing with clients at the investment planning stage and creates roadmaps for structuring the financing deal.
Innovative Approaches to Project Diversified Loan Portfolio Successfully executing its annual Financing Akbank shares its deep-rooted plans and attaining its corporate In 2016, Akbank continued efforts know-how in project financing goals thanks to a diversified to provide structured financing with clients at the investment loan portfolio composition, the to many different “greenfield” planning stage and creates Bank boasts one of the lowest projects among Turkey’s roadmaps for structuring the non-performing loan ratios in the leading infrastructure project financing deal. During this industry. Akbank originates loans portfolio, such as public-private process, by cooperating with local to the energy, infrastructure, real partnership hospitals and the and international banks as well as estate, and telecommunication, Gebze-Izmir Highway project. multilateral financial institutions transportation, and such as IFC, EBRD, and EIB, petrochemicals industries in the Bank strives to create the order to maintain a balanced and financing structure that offers diversified credit portfolio. the greatest value-added to all parties, and especially to our customers.
SUSTAINABILITY REPORT 2016 62 Value Added to Our Customers
Project Financing Loans by Industry (USD million)
CURRENT RISK CAPITAL COMMITMENTS Acquisition 35% Energy 27% Real Estate 26% 125 Infrastructure 9% 305 341 3,007 Other 3%
2,401 2,426
268 100% 816 258
Energy Infrastructure Real Estate Acquisition Other
Project Financing Loans by Type of Transaction (USD million)
CURRENT RISK CAPITAL COMMITMENTS
New Investments 62% Acquisitions 35% 914 Treasury Guaranteed Transactions 2% Syndication 1% 5,563
125
3,086 100%
178 80
New Acquisitions Treasury Syndication Investments Guaranteed Transactions
SUSTAINABILITY REPORT 2016 63 Value Added to Our Customers
EXCLUSIVE SERVICES FOR CLIENTS
Akbank stands by SMEs in their digitalization process in order for SME clients to conduct their businesses more efficiently and productively, meet customer demands, reduce costs, and ensure the sustainability of their enterprises.
Innovation Support For SMEs provides loans to all enterprises Akbank builds campaigns for Playing a key role in Turkey’s registered in the KOSGEB this segment around the values development, SMEs need not database that can apply for of understanding and solidarity, only financing support but loans. which also constitute the essence also knowledge and guidance of craftsmanship. Launched with that will create value for their Pursuant to the agreements the “Pay When You Can Loan,” businesses. The Bank stands signed between Akbank and the which offers flexible repayment out with innovative practices in Credit Guarantee Fund of Turkey terms for the credit craftsmen the SME Banking segment that (KGF), the Bank participates in need, the offerings in this simplify customer transactions KGF’s programs and provides segment continued successfully and support their growth. collateral support to SMEs. The with “Axess SME,” “Pay as You Bank conducted training sessions Wish, Craftsmen,” Member Effective Cooperation with to inform branch and regional Merchant Campaigns, “First Sale KOSGEB office personnel on these Savings Account,” “Cost Saving As part of Akbank’s cooperation programs. Currently, Akbank Tariffs,” and Eko POS Tariffs. with the Small and Medium is also successfully executing Enterprises Development KGF integration projects. Eko POS Tariffs Organization (KOSGEB), SMEs SMEs, artisans and craftsmen, Under the Eko POS offering, are provided with no-interest agricultural enterprises and businesses that want to fix their financial support under the farmers, women and young member merchant expenses pay “Emergency Support Loan,” entrepreneurs in every region of a monthly fixed fee based on the “Machinery & Equipment Loan Turkey can access bank loans limits of their package of choice Interest Support” and “Zero- more easily by taking advantage thanks to budget-friendly tariffs. Interest Enterprise Loan Support” of KGF guarantees. Akbank plans Eko POS tariffs are offered under programs. The Emergency to expand the KGF integration the Eko POS 2,500, Eko POS 5,000 Support Loan Program supplies process, increase its share of KGF and Eko POS 10,000 packages, loans to customers that are loans, and facilitate SME access which are designed to meet the impacted by natural disasters, to credit via KGF guarantees in needs of craftsmen operating general strikes, fires, popular the year ahead. in various industries. Eko POS movements and terrorism. tariffs do not entail any revenue Meanwhile, the Machinery & “Craftsmen Fraternity” from shortfall penalties or POS Equipment Loan Interest Support Akbank service fees. In addition, member Program provides funding for the Akbank continues to execute merchants can transfer their POS domestic and new machinery & initiatives for artisans under the revenues to their accounts the equipment purchases of clients “Craftsmen Fraternity” concept. next day without any commission operating in the manufacturing Believing that craftsmanship expenses. industry. Lastly, the Zero-Interest is not simply a profession Enterprise Loan Support Program but also a distinctive culture,
SUSTAINABILITY REPORT 2016 64 Value Added to Our Customers
“Craftsman Internship” for per six months, or per year, expectations. The Bank develops Customer Relationship Managers including money transfers, EFT, and rolls out effective Mobile Under the Akbank-TESK checkbooks, and check collection, Banking applications for its cooperation, Akbank SME for a predetermined fee. Since customers. Customer Relationship Manager they do not pay separate fees for (CRM)s visited tradesmen and each transaction they perform, SMEs must embrace digitalization craftsmen that are referred to the customers have cost certainty in order to run their businesses Bank by TESK, which operates before the fact. SME clients can more efficiently, meet customer across the entire country, in 2016. select the best tariff for their demands, reduce costs, and CRMs spent time with craftsmen needs based on the frequency ensure survival. To this end, and monitored their daily of transactions and product and Akbank and Vodafone joined business cycle more closely, from channel use. forces to facilitate digital the viewpoint of the customer, uptake by SMEs. As part of this the Bank and the supplier. This More Reliable Commerce with QR partnership, SMEs can digitalize approach allows CRMs to grasp Coded Check their banking transactions by the craftsmen’s most pertinent Rolling out the “QR Coded using the “Vodafone Ready issues, and learn their concerns Check” product for its customers for Tomorrow Platform” while and problems, which is very in partnership with the Credit performing certain Akbank Direkt important for CRMs in order to Bureau of Turkey (KKB), Akbank transactions free of charge for effectively do their jobs. Visits to made the past check clearance three months. In addition, the craftsmen also provided critical performance of the SMEs query- Bank offered customers the feedback for Akbank’s product able from a reliable source. opportunity to conduct a digital development efforts in the SME Thanks to this new feature, which status and needs analysis with segment. serves as a reliable indicator of “Vodafone Ready for Tomorrow” reputation, persons receiving a staff and to collect information First Sale Savings Account QR coded check can reach the on technology solutions that Inspired by the Turkish saying summary check-writing report of can be used to boost SMEs’ “The first sale is blessed,” the the issuer. digitalization level. Akbank has “First Sale Savings Account” launched a special SME version of aims to encourage craftsmen to As the QR coded check the Digitalization Index, provided save more. This groundbreaking application gains traction in the by Vodafone to Akbank’s SME product, offered for the first marketplace, checks written by customers, for all enterprises time in Turkey by Akbank, customers whose checks clear whether they are Akbank allows all artisans who use the promptly and who have high customers or not. Akbank POS to set aside the check-clearing index values proceeds from the first sale of are expected to become more As part of the “My Business each day. Artisans, who typically prevalent. This in turn will put Partner Vodafone” venture, experience irregular cash flows, commerce in the domestic market Akbank organized the 48- are able to use the balance in on more sound footing and make hour “Hackathon” event, their First Sale Savings Accounts check-based collections more which aimed to generate at any time without incurring a reliable. digital solutions to address fee or a penalty. SMEs’ challenges. Turkey’s Akbank Supports SMEs in Digital first SME Hackathon included Cost Saving Tariffs Transformation the participation of software SMEs often encounter a number Mobile banking is growing by developers, programmers, design of expense items, such as leaps and bounds both globally professionals and university goods purchases and fixed and in Turkey due to rapidly students. The event focused payments, during the course advancing mobile technologies on developing digital solutions of their business dealings. In and strong demand. Keeping – such as e-commerce, social response to this fact, Akbank a watchful eye on advances in media, CRM applications, and SME Banking developed the “Cost technology in general, Akbank collection and payment systems Saving Tariffs” where SMEs can closely monitors developments – that will enable SMEs to grow perform a certain number of in this area especially given their businesses and boost banking transactions per month, growing customer needs and productivity.
SUSTAINABILITY REPORT 2016 65 Value Added to Our Customers
EXCLUSIVE SERVICES FOR CLIENTS
In 2016, the Bank continued to successfully administer the Akbank Entrepreneur Development Program jointly with Sabancı University to guide, support and train entrepreneurs.
Akbank’s mobile applications import payment transactions smart phones; download their make the lives of SMEs easier. on the Akbank Direkt Corporate Akbank account transactions POS-owner SME clients can Internet Branch. Additionally, into their accounting systems access all information on they can carry out in-cash and automatically; and conduct service terms and conditions, cash-against-goods import money transfer transactions with daily revenue figures, end-of- transfer transactions using the suppliers via the application. day reports, and campaigns import payments function. through the Akbank Direkt My Akbank Entrepreneur Business application. In addition, Akbank is leveraging its resources Development Program Akbank member merchants can to help digitalize its employees, In 2016, the Bank continued check average turnover of other in addition to its customers. SME to successfully administer member merchants operating in Customer Relationship Managers the Akbank Entrepreneur the same sector by location and offer 12 products – from credit Development Program jointly segment, allowing them to assess cards and POS to bill and tax with Sabancı University in order where they stand with respect to payments and debit cards – to guide, support and train the competition. in accordance with customer entrepreneurs. The program needs through the intra-Bank accepted applications from all The rapid growth of the digital mobile application, and complete individuals who are actively world enabled SMEs to access product sales instantaneously. engaged, as a founding partner or credit, their most basic banking executive, in the management of need, via digital channels. Akbank also takes a closer look a company established in Turkey. Akbank’s SME segment at fintech companies that will As a result of the selection customers can obtain commercial facilitate the operations of process, 50 entrepreneurs loans within their respective SMEs. Aiming to foster solution participated in five full days credit limits conveniently and partnerships with fintech of training under the program. quickly at attractive interest companies that develop digital Participants received training rates using. applications to meet SMEs’ needs and knowledge transfer in a and enhance their productivity, wide range of subjects – from Akbank Direkt Akbank strives to pioneer the managing finances during an SMEs can also utilize the Akbank growth of the fintech ecosystem organization’s growth phase Direkt Corporate application in Turkey. The Bank entered into and drafting marketing and for their Cash Management and its first cooperation in this area operations plans according to Foreign Trade transactions. This with Paraşüt, a user-friendly different business models, to solution facilitates quick and bookkeeping application. Paraşüt raising capital for financing needs easy execution of employee enables SMEs to monitor the and growing in domestic and salary payments or bulk financial operations of their overseas markets. Participants payments. Further, foreign trade enterprises 24/7 using their also had the opportunity to customers can perform their personal computers, tablets or
SUSTAINABILITY REPORT 2016 66 Value Added to Our Customers
hear successful entrepreneurs and Pekin & Bayar Ortak Avukat Agricultural Fairs who attended the program as Bürosu (Law Firm), the program Akbank meets the needs of the guest speakers, as well as joining partners. During the Academy, agricultural sector via banking office visits to well-known visits were organized to the products and insurance services entrepreneurs to meet and speak manufacturing plants of Sabancı that are designed in line with the with them. Holding companies. Participants seasonal nature of the cash flows received a certificate from the of customers in this segment. Cooperation with Endeavor EDU at the completion of the During the year, the Bank As part of its partnership with program. informed farmers about Akbank Endeavor Foundation, Akbank products and services at the fairs successfully continued to Keys to Sustainable Success for it participated in Ankara, Izmir, make available a credit pool for Family-Owned Businesses Study Bursa, Konya, Adana, Burdur, active entrepreneurs offering The Bank also sprang into Tekirdağ and Antalya. such advantages as convenient action in order for family-owned collateral terms, long term loans businesses – important assets Akbank–Paraşüt Cooperation and low interest rates. for the Turkish economy in Akbank provides innovative Akbank’s opinion – to continue to products and applications to Akbank Academy of Family deploy their experience in support make the lives of SMEs easier. Businesses of economic development. The cooperation between Akbank Akbank Academy of Family While the Akbank Academy of and Paraşüt enabled businesses Businesses, a joint venture of Family Businesses continues to to manage their financial Akbank and Sabancı University’s operate, Akbank conducted the operations centrally from a Executive Development Unit “Keys to Sustainable Success single source and maintain their (EDU), was organized for the for Family-Owned Businesses” finances under tighter control. seventh time as of year-end study in conjunction with Sabancı 2016. In response to requests University, Deloitte, and the Paraşüt, a bookkeeping program, from leading companies in Family Business Association allows Akbank’s SME clients to the industry, the program of Turkey (TAİDER). The survey, make their payments from the was administered for Akbank conducted among family-owned same source that they keep customers as well as their businesses that have been in their books while easily tracking distributors and dealers. Akbank existence for many years with the accounting of their account Academy of Family Businesses proven track records, addressed activity. This application, targets family-owned businesses topics such as sustainable launched by Akbank to help that wish to institutionalize success at family-owned digitalize SMEs and boost their their enterprises, who want to businesses, management- business productivity, enables come up to speed on the latest level organization, succession enterprises to manage their in enterprise management, and planning, and nepotism. The financial operations easily, from which plan to turn the business study is intended to guide issuing invoices and tracking over to the next generation. The businesses in setting their future payments to online collections program covered a wide variety strategies. and reporting. of subjects of particular interest to family-owned business Iftar Dinners Responsible Practices in representatives. These topics As part of its iftar (breaking the Consumer Banking included strategic management, fast) dinner events during the Financial habits and service business development, month of Ramadan, Akbank came expectations of individuals innovation, institutionalization, together with SMEs and industry may vary depending on age, finance, best corporate representatives in Balıkesir, education, and occupation. Based governance practices, legal Çanakkale, Denizli, Diyarbakır, upon this fact, Akbank addresses matters and human resources Istanbul, Sakarya and Sivas, and different financial needs of management. The Academy’s listened to their requests and customers with its wide variety training sessions were taught by needs firsthand. Thanks to the of personal loan and deposit EDU consultants, all of whom are information collected at these products. expert in their respective subject events, the Bank continues to matter and have executive-level develop innovative products and corporate experience, and the services for SMEs. instructors of Deloitte Turkey SUSTAINABILITY REPORT 2016 67 Value Added to Our Customers
EXCLUSIVE SERVICES FOR CLIENTS
Encouraging Deposits and Akbank Flexible Savings Account Gold Deposit Account Creates Facilitating Investments Savings Another product to encourage Value for Individual Savings Campaign savings is the “Akbank Flexible The value of the gold held by The biggest challenge in the Savings Account,” which allows households in Turkey is estimated Turkish economy, which has savings in gold and foreign to be around USD 200 billion. The become highly stable in recent currencies (US dollars, Euro, fact that a great portion of this years, is the current account Japanese Yen, British Pound, stock is kept under the mattress deficit resulting from the low Russian Ruble) without any means the contribution of such levels of domestic savings. In term limits simply by giving savings to the economy is very order for Turkey to attain its orders for transfer from credit little. On the other hand, savings goal of rapid economic growth, cards or deposit accounts. With injected into the banking system the current account deficit must the Flexible Savings Account, are transferred by banks to those be reduced and thus personal customers wishing to save money in need of resources and thus savings must increase. even in very small sums can open support the Turkish economy. savings accounts and save in To support this important various currencies. With the “Gold Deposit Account,” national objective, Akbank launched in 2012, the Bank launched a “Savings Campaign” Akbank Direct Serbest Account helps channel the idle savings in April 2012. As part of this (Freedom Account) Exclusive to stuffed “under the mattress” to campaign, Akbank offers the Digital Channel Turkey’s development. In addition, advantageous products and To provide support to its broad- with the “Invitation for Gold” services to encourage savings based deposit strategy, the Bank service, scrap gold and jewelry while also carrying out corporate rolled out the Akbank Direct are converted into equivalent social responsibility projects Serbest Account (Freedom grams of gold by special experts to raise awareness on savings. Account) for small amount savers at the Bank’s branches; then Akbank Volunteers also support in 2015. Obviating the need to these can be deposited to Gold the broad-based financial wait until the maturity date of Deposit Accounts in Turkish lira. training projects. Detailed the account, the Akbank Direct The amount deposited into the information on these projects is Serbest Account gives deposit savings account fluctuates in presented in “Our Community holders the freedom to add to or parallel with gold prices while Investment” section of this withdraw from their accounts. Akbank customers can invest Report. In addition, the Akbank Direct their gold without the risk of Serbest Account (Freedom theft or loss under the Bank’s Akbank Deposit Savings Account Account), designed exclusively guarantee. The “Akbank Deposit Savings for digital channels, enables Account” – a product unveiled savings between TL 1,000 and as part of the Savings Campaign TL 200,000 to grow at attractive – was met with heavy interest interest rates; expands the Bank’s by Akbank customers thanks to deposit customer base; and its innovative approach. Akbank allows customers to perform their Deposit Savings Account has account transactions quickly a 5-year maturity and enables without having to visit a branch. individuals to gain the habit and discipline of saving money. The account allows monthly transfer of a pre-determined amount of money from a regular deposit account to the savings account. As a result, savings holders can earn interest even on very small term deposits. Every month, approximately 130,000 Akbank customers save money with this approach.
SUSTAINABILITY REPORT 2016 68 Value Added to Our Customers
ONE-TO-ONE BANKING
Continuing to expand and grow as of year-end 2016, Akbank One-to-One Banking reached 135,000 clients across Turkey, served by 350 One-to-One Banking Managers in nearly 280 branches.
One-to-One Banking is an the needs of customers’ social Akbank Wealth Management all-encompassing financial lives in addition to serving their Launched on October 27, 2015, advisory services package that financial needs. The unique Akbank Wealth Management offers exclusive service, various “World of One-to-One Privileges” was designed to bring a breath advantages in banking products, enriches the lives of customers, of fresh air not just to Akbank and non-banking services for their families and loved ones, but the entire industry, and clients’ social lives, delivered via offering exclusive benefits for effectively serve customer dedicated One-to-One Customer every moment of everyday life. needs in non-deposit investment Relationship Managers and a products. One-to-One Specialist Line. Akbank Direkt Plus, a web- based premium services Allowing customers to find Expanding in scope across Turkey, platform that exclusively serves answers to all their investment- Akbank’s One-to-One Banking One-to-One Banking clients, related questions on a single privileged service model offers provides privileged service to its platform, Akbank Wealth a diversified lineup of products, customers, including Live Support Management is a product of special pricing, exclusive via video chat, personal agenda cooperation and strong synergies service on every channel, and tracking and reminders. with AkInvestment and AKAsset daily financial notifications Management, Akbank subsidiaries complemented by benefits in As part of the One-to-One that are leaders in their many areas as well as special Banking concept, Akbank respective markets. social events. developed the “Expat Banking” service to better serve the Digitalizing in 2016, Akbank Continuing to expand and grow as increasing number of foreign Wealth Management further of year-end 2016, Akbank One- professionals and retirees expanded the limits of better to-One Banking reached 135,000 residing in Turkey. The Expat managing customer investments clients across Turkey, served Banking service network – in line with their investment by 350 One-to-One Banking comprised of 18 branches in preferences and expectations. Managers in nearly 280 branches. seven provinces where foreign The One-to-One Specialist Line, nationals live in large numbers – Akbank registered three a remote service delivery model continues to provide all types of groundbreaking innovations in that broke new ground in Turkey, banking services for customers Turkey by digitalizing Akbank continued to serve 65,000 One- in the English language. Branches Wealth Management in 2016: to-One Banking clients across that do not have an expat • Enabled investors to determine the country via 120 specialist customer representative on their investor profiles and customer representatives in 2016. premises provide remote service receive asset allocation via the One-to-One Specialist recommendations using their Akbank One-to-One Banking Line Expat staff. mobile devices with Robo generates solutions that address Advisor, a first in Turkey.
SUSTAINABILITY REPORT 2016 69 Value Added to Our Customers
ONE-TO-ONE BANKING
• Enabled investors to AKAsset Management helped One-to-One Banking Privileged make video calls with an customers to diversify their non- Service Model AkInvestment investment deposit assets into mutual funds The One-to-One Banking advisor from anywhere using in accordance with investor risk Privileged Service Model is a their mobile devices, as another profiles, risk-return expectations, comprehensive and exclusive first in Turkey. and prevailing market conditions set of services which provides • Enabled customers equipped with the “Portfolio Ideas” banking services for Akbank with sufficient information and and “Investment Baskets” customers under advantageous competence in equity trading products. The Bank makes asset terms while also meeting their to open brokerage accounts allocation recommendations expectations regarding social whenever and wherever they to its customers through activities. Expanding in scope want without having to sign a these products by leveraging across Turkey, Akbank’s One-to- single paper document. the expertise of AKAsset One Banking Privileged Service Management under the Akbank Model offers a diversified lineup Thanks to these services that Wealth Management platform. of products, special pricing, are firsts of their kind in Turkey, priority service on every channel, Akbank made another major Akbank’s Flexible Savings and daily financial notifications stride toward Akbank Wealth Account - Mutual Funds allows complemented by benefits Management’s charter macro- clients to build a nest egg with in many areas in addition to vision of promoting financial regular contributions. In addition exclusive social events. The investment vehicles in Turkey in to the mutual funds chartered by unique World of One-to-One the best possible manner. AKAsset Management, Akbank Privileges aims to enhance also offers three umbrella Akbank One-to-One Banking Mutual Funds funds comprised of AKAsset clients’ social lives, serve their Akbank continues to offer Management mutual funds. financial needs and enrich the investors a full array of lives of customers’ families and investment options with an Nar Account Channels Small loved ones with exclusive benefits extensive lineup of mutual Savings into the Economy for every moment of everyday funds – including equities, The “Nar Account” is a new life. The privileged service is fixed-income securities and product that rolled out with available to eligible customers. commodities – in domestic and the aim of offering growth overseas markets. Assuming even for small savings and thus One-to-One Banking Investor the active distributorship of the bringing these savings into the Meetings assess the domestic mutual funds of its subsidiary financial system. As a product and global investment AKAsset Management, Akbank that offers solutions for all cash environment and address the broke more new ground under management needs of customers, expectations and questions of the Akbank Wealth Management the most important feature of the Akbank One-to-One Banking platform and underwrote the Nar Account is that it offers daily customers regarding the markets public offerings of Turkey’s first interest for even small sums. as part of Akbank Investment Real Estate Investment Fund and Services. During the year, these Venture Capital Investment Fund. meetings were organized in Istanbul, Izmir, and Ankara.
Akbank One-to-One Banking continued to invite clients to unique events, bringing them together at social occasions held with special themed concepts in 2016.
SUSTAINABILITY REPORT 2016 70 Value Added to Our Customers
PRODUCTS make regular payments with a Resource Utilization Support new payment plan. We offer some Fund on condition that the house DESIGNED FOR such cardholders and loan users to be purchased is given as EVERYDAY LIFE the opportunity to pay their debt guarantee. By cooperating with before legal proceedings are construction companies such exi26: Banking Services for the initiated. as the Housing Development Youth Administration of Turkey A significant majority of the RESPONSIBLE (TOKİ) and Emlak Real Estate people in Turkey who have Investment Trust, we support not yet been introduced to LOANS AND urban transformation activities banking services are young INSURANCE through earthquake-resistant, people. Akbank has developed PRODUCTS exclusive architectural projects products to serve the banking with strong infrastructures not needs of these students and to only in metropolitan cities, but Contribution to Professional support them. An example of also in Anatolia. Development: “From Kitchen to the products and applications Life” offered to students between Customers applying to the Bank’s “From Kitchen to Life” is a the ages of 16 and 26 who are special call center (Big Red Line special loan package that we part of the customer segment – 44 44 253) can both obtain created for the Culinary Arts Akbank refers to as Exi26 is all kinds of legal and technical Academy of Istanbul (MSA) the Student Account. Young assistance from mortgage students in cooperation with accountholders can withdraw consultants and apply for a Endeavor Turkey. Approved by money free of charge at any ATM mortgage. the Turkish Ministry of National abroad with their neoexi26 debit Education, MSA is the first and card, withdraw money at other only private vocational education banks’ ATMs free of charge twice STRONG institution to give internationally a month to facilitate fast money RELATIONS WITH accepted diplomas in the area transfer with their families, and of professional cookery, pastry ASSOCIATED shop on the Internet. Axess exi26 and bakery. With this loan, MSA credit card is yet another product COMPANIES students only pay the interest Akbank offers students. Axess rates during their education and exi26 credit card holders benefit “Having It Insured Is Easier” make the principal repayments from special campaigns for Our major principle in in installments when they start education, school expenses, and bancassurance is allowing working. With the From Kitchen stationery expenses as well as all customers to reach insurance and to Life loan, we aim to support Axess campaigns free of charge. pension products in the easiest future chefs in their professional and fastest way thanks to our lives. widespread delivery channels. Refinancing Solutions for Considering the lifetime risks Consumer Loan Debt Solutions for the Rapidly In recent years, with the increase of customers, Akbank offers Growing Housing Market in the debt of individuals products with affordable prices Over 300,000 Akbank customers and the effect of economic and coverage for all customer purchased homes since 2005 fluctuations, we try to provide segments. Private pension and when the mortgage market a certain level of convenience corporate insurance products of gained huge momentum. We for customers who had trouble AvivaSA Pension and Life and offer mortgage loans for up to in paying back personal loan or AkInsurance can be reached 75% of the home value with credit card debts, by taking into through all delivery channels up to 120-month terms and consideration the limitations including Akbank ATMs and Call exemption from Banking and imposed by legal authorities. Center. Insurance Transaction Tax and We evaluate the requests of customers who demand changes in payment plans or who are believed to recover defaults and
SUSTAINABILITY REPORT 2016 71 Value Added to Our Customers
DEBIT AND CREDIT installment cash advance by program. They can then use making a purchase commitment. their Wings Miles to purchase CARDS WHICH ADD Further, Shopping Tariffs give airline tickets as well as hotel VALUE TO LIFE instant discounts to clients for accommodation, international fuel station and grocery store travel insurance, and tours via In 2016, Akbank continued to purchases as well the opportunity www.GezginlerAlemi.com. Wings create value for the lives of to pay for credit card purchases holders can also use the advance customers with the Axess, Axess in three installments. miles feature to book their Business, Wings, Wings Business, trips even if they do not have a and Free credit cards along with Also providing convenient sufficient miles balance for their the Neo debit card. repayment options for travel plans. cardholders, Axess promotional As of December 2016, a portfolio campaigns offer payment The Privileged World of Wings of over 6 million credit cards in installments and deferred The installment and campaign with our four leading credit payment. “Installment Request” opportunities offered expressly card brands – Axess, and Free, presents an installment for Wings holders provide special A portfolio of 7 million debit opportunity after a purchase benefits for cardholder purchases cards (Neo). “Member Business is made from merchants not while rapidly accumulating miles Network” of 360,000 members participating in the campaign bring them closer to realizing (those using our POS machines). while “Deferral Request” allows their travel dreams. They can payment for purchases to be take advantage of discounts OUR CUSTOMER- deferred to future months. and privileges offered by Wings In addition, the Statement Style member merchants, with FRIENDLY CREDIT Separation feature enables the “Miles on Land” program; CARD BRANDS statement balances to be paid in cardholders can use their Wings installments. Miles to make payments at Wings Axess: A Credit Card with Style-member restaurants, Special Benefits Reward Campaigns for hotels, spas, and sports centers. Axess, one of the Bank’s major Customers Thanks to the rich travel and credit card brands, continued The opportunities provided to lifestyle content available to offer exclusive benefits to Axess cardholders domestically, on wingscard.com.tr, Wings cardholders in 2016, such as Akbank began conducting cardholders can make advance convenient shopping anywhere campaigns that offer chip- travel plans, access information in the world, earning chip-money, money and hotel and restaurant on dining venues and events in installment opportunities, and discounts for overseas purchases the city, and lead well-informed special offers from distinctive this year. social lives. brands. Other features include helping customers with their Akbank actively communicates Wings customers can be picked cash needs such as fast money, with Axess cardholders through up from any location they choose cash advance, installment cash its updated website and social and dropped off at the airport in advance, and SMS money that media channels such as Facebook Turkey’s major cities, including can be purchased via SMS. In and Twitter. Istanbul, Ankara, and Izmir, and addition, the Cash-Para (Cash- take advantage of the discounted Money) program offers interest- For more information please visit: airport transfer service. free cash advance opportunity to http://www.axess.com.tr/ customers for their purchases. In addition to the domestic Wings: Mile Accumulation promotional campaigns, Ever-Expanding Portfolio of Program Wings also continued to offer Features Wings is a credit card for installment as well as hotel and Cardholders who commit to using Akbank’s high-income customers restaurant discount campaigns Axess in purchases continue to who have an active social life and abroad during 2016. earn additional chip-money or who travel frequently for either benefit from interest discounting. business or pleasure. Cardholders For more information please visit: This service allows customers earn miles with each purchase http://www.wingscard.com.tr/ to obtain an interest-free as part of Wings’ exclusive miles
SUSTAINABILITY REPORT 2016 72 Value Added to Our Customers
Free: A No-Annual Fee Credit For more information please Business Credit Card Products Card visit: http://www.akbank.com/ Akbank serves the business Customers of Free, another consumer/cards/neo.aspx credit cards segment with the important card in the Bank’s Axess Business and Wings portfolio, earn substantial chip- Business brands to meet the money and enjoy installment INNOVATIVE various needs of small, medium benefits at hundreds of APPLICATIONS IN and large-size enterprises, such thousands of Axess member DEBIT CARDS AND as fuel and wholesale purchase, merchants without paying an CREDIT CARDS business travel, accommodation, annual credit card fee. In addition, and office supplies. In 2015, many other benefits are available the Bank increased the number Akbank continued to render to Free cardholders, including of cards in circulation in this innovative services in 2016 in line cash solutions, tariffs, orders, segment to around 235,000, up with the expectations of its credit additional card, and insurance. 20% compared to the previous card and debit card customers year. Companies can monitor whose numbers soared compared SMS Notification Option from their business card payment to the previous year. These Free My Budget Service transactions regularly, earn innovations include: The Free Budget service allows mile points and chip-money, cardholders to manage their and benefit from a variety of Debit Cards and Prepaid Cards budgets by sending an SMS promotional campaigns. Akbank Combining Neo, the debit card notification stating that they activated the shared credit line of limit-conscious consumers, reached the pre-determined project in 2015 which allows sole with the Artı Para (Plus Money) expense level. They can also learn proprietorships that engage in product, Akbank offered about their available limit, current commercial activities but who installments for customers who debt balance, and payment due use consumer credits to obtain prefer to use debit cards for date via SMS. In addition to not commercial cards. Akbank shopping. This practice boosted paying an annual card fee, Free launched the Çatı (Roof) Limit the Bank’s interest income while cardholders have the option to product for sole proprietorships in encouraging the use of Neo in enroll in periodic campaigns such 2016, which increases customers’ shopping transactions. as extra installments, payment credit limit potential while aiming deferrals, and chip-money. to ensure rapid sales delivery. The Innovative Benefits in the Debit They can benefit from these Tedarik (Supply) Card project, Card Sector campaigns in return for a certain which the Bank recently initiated In addition to the Neo-related fee. improvement and development marketing initiatives carried out efforts for, will intermediate the throughout the year, Akbank For more information please visit: collections of distributors and began issuing Neo instantly at https://www.kartfree.com/ dealers that purchase goods from branches to enhance operational corporations and large companies efficiency. This resulted Neo: Standing Out with Special in an attempt to boost revenue in material savings in card Discounts and profitability. delivery costs as well as faster Neo, the debit card that gives card activation and improved chip-money for purchases and customer satisfaction. allows cardholders to use their chip-money balances for free shopping, boosted the card’s frequency of use by also offering purchase discounts. Carrying either the MasterCard, Visa brand or TROY, Neo also contributed to the prevention of off-the- books transactions thanks to its widespread use in shopping, e-commerce and installment payments.
SUSTAINABILITY REPORT 2016 73 Value Added to Our Customers
INSURANCE SERVICES PROVIDING COVERAGE FOR CARDHOLDERS
Acquiring 34,000 new members, Akbank’s member merchant network climbed to 356,000 businesses with 418,000 POS terminals as of year-end 2016, continuing a strong performance in this segment.
Responsible Practices in Debit Member Merchant Activities and Continued Expansion in and Credit Cards Insurance Creative Campaigns Contactless POS Network Services in Credit Cards Acquiring 34,000 new members, Akbank continued to expand We offer our credit card Akbank’s member merchant the contactless POS network in customers a variety of insurance network climbed to 356,000 2016, as the number of merchant products to protect them in the businesses with 418,000 POS members with contactless event of accidents, loss, and terminals as of year-end 2016, transaction capability climbed to theft. If the cardholder loses his/ continuing a strong performance 77,000. her job, AkSigorta Credit Card in this segment. The Bank’s Unemployment Insurance insures shared POS terminal initiatives Cash Register POS all credit card debt of the card- continued in 2016, 51,500 of Akbank serves clients who prefer holder. which are Akbank-owned. Akbank to purchase integrated cash has further strengthened its register POS devices via widely Environmental E-Statement market position by broadening available cash register POS Solutions the Bank’s member merchant terminal providers in the market, Aiming to reduce the amount of network via agreements with such as Verifone, Ingenico, Beko, paper used in printing account sector-leading companies and Profilo, Hugin, and Vera. In 2016, statements, Akbank has offered conducting consumer-oriented customers who purchased their credit card customers the promotional campaigns. As of devices using Akbank credit option of receiving their account end-2016, some 255,000 member cards had the option to pay in statements via e-mail or SMS merchants offers installment six interest-free installments. since 2008. To encourage our and rewards benefits to Axess Akbank also eased the burden customers to receive their cardholders. of purchasing a cash register account statements exclusively POS with attractive promotional via e-statements, the Bank Number of Merchants Using campaigns, such as free chip- continues its communication EkoPOS Tariffs Increased money and waiver of monthly efforts under the slogan “Give Member merchants using EkoPOS POS fee, providing significant Life to Trees” via IVN calls and tariffs with a fixed monthly fee opportunities for customers SME notifications. An application of as little as TL 29 without subject to the value-added allows customers to switch to incurring any other commission tax. As a result, Akbank’s cash e-statement for all of their cards or fees, reached 35,000, in 2016 register POS network doubled with a single SMS. By increasing up 60% compared to the previous compared to the previous year, the frequency of IVN calls in year. jumping to 110,000. 2016, Akbank raised the number of cards receiving e-statements to 3.2 million as of year-end 2016.
SUSTAINABILITY REPORT 2016 74 Value Added to Our Customers
Continued Expansion of Direct Consumer banking customers Making utmost use of every Banking Channels via Innovative prefer direct channels available advanced call center Banking Approach particularly in payment and technology, Akbank Call Center As time becomes more valuable money transfer transactions continued to invest in new each passing day and the variety due to their convenience and technologies in 2016. The Call of transactions performable on speed advantage. Some 86% of Steering application, which direct banking channels expands, money transfers and over 86% interprets customer answers in customers are driven to use of payment transactions at the the interactive voice response direct banking channels more Bank are performed through system and guides them to extensively for their banking Akbank Direkt Internet and the appropriate point, directs transactions. According to Banks Mobile channels. The share of callers to the correct customer Association of Turkey (TBB)’s cash withdrawal transactions representative in the first September 2016, survey, around performed at branches is in connection. The Speech Analytics 19 million banking customers decline, as nine out of every 10 application was deployed to, and actively use internet banking; cash withdrawals are conducted began to be used by, all customer meanwhile, active users of using the ATMs. representatives in 2016. As a mobile banking number around result, the Bank is now capable 17 million in Turkey. Digital Innovative Steps in Call Center of conducting multi-faceted and banking users increase every day Management detailed analysis of all incoming in tandem with rising internet Striving to deliver exceptional calls. and smartphone penetration. experiences at every point of Digital banking channels are contact with customers with Accessibility of the Bank’s very popular in particular for its customer-oriented service Services viewing account information and approach, Akbank Call Center The Bank takes heed to establish balances, money transfers, and continued to pioneer the industry standards of accessibility to payment transactions. These in 2016. This was achieved with its products and services, and alternative channels also make its well-trained, experienced, serve all customers under equal significant contributions to highly-qualified, and solutions conditions. The service model products sales, rising by the day. oriented staff; rich array of for customers with disabilities transactions; and creative, entails providing all banking Currently, more than 3 million results-oriented approaches services, including meeting Akbank customers each month paired with superior use of with the branch manager, to are served without ever visiting technology. customers with disabilities at a branch via the Bank’s Digital the entrance level. Stickers and Banking channels. Making nearly 60 million customer bands in the Braille alphabet contacts in 2016, Akbank Call stating the branch name and Closely monitoring the global Center continued to distinguish hours of operation were placed digitalization trend, Akbank is a itself by delivering quick, easy on the doors of the branches; standout with its Direkt Mobile access with more than 1,000 information boards presenting application, as one of the fastest employees. Akbank Call Center the same information were growing banks in terms of user renders an unparalleled customer placed inside branch locations. numbers. An Akbank customer experience thanks to constantly Tactile surfaces were created visits a branch 2-3 times a year expanding technology utilization, inside the branches for visually on average, while using internet ending calls successfully without impaired customers. Visually banking 4-5 times and mobile the need for the customer to call impaired customers were enabled banking 15-20 times each month. back. Leveraging its powerful to hear the Consumer Banking More than 85% of Akbank Direkt CRM infrastructure to generate Services Agreement via QR Mobile users use this channel dynamic offers to customers Code and smart phones. Akbank regularly every month. The cross- in line with their needs, the Call Call Center employs Customer selling ratio and profitability Center boosts its effectiveness Agents who are proficient in sign of customers who actively use and share in insurance, credit language in order to be able to mobile channels are double and card, revolving credit card loan, provide communication support 3.5 times, respectively, the Bank’s and general purpose loan sales via video call to hearing impaired overall average. each passing day.
SUSTAINABILITY REPORT 2016 75 Value Added to Our Customers
INSURANCE SERVICES PROVIDING COVERAGE FOR CARDHOLDERS
Akbank’s core priority is to deliver an integrated and unprecedented customer experience at all points of contact between the Bank and the customer.
customers at branch locations. achieving higher efficiency via regular measurements and The number of ATMs that are technological innovation and making continuous improvements accessible by orthopedically process improvements, and for all Akbank Direkt channels handicapped customers is also gaining a larger share in profit- to attain this goal, the Bank growing. In addition, the Bank making initiatives by providing elicits feedback and insights prepared, and made available to specialized services. from customers via experience employees, a “Proper Approach to and satisfaction surveys for all Disabilities” training to educate Cash Back in Cash Credit Card points of contact, user surveys, the staff on communicating with Payments and ease of use testing. The Bank customers with disabilities in Akbank ATMs served about 5 conducts root-cause analyses on 2016. million customers and performed all data collected from customers 17 million transactions on to determine courses of action Call Center Service via Social average each month during 2016. and to improve the customer Media Channels The Bank continues to leverage experience on all channels on an As one of the first companies in the functionality range of its ATM ongoing basis. Turkey to integrate with social network to reduce the branch media in a comprehensive workload and generate income. In 2016, the Bank continued to fashion, Akbank Call Center To this end, efforts that were conduct ease of use testing and also serves customers via the completed and rolled out in 2016 surveys for all channels using Facebook, Twitter, chat and video include: globally-accepted metrics while chat channels in addition to voice • Giving the customer cash back tracking the customer experience calls. in banknotes after credit card scores of the various channels. payment deposits in cash, The Bank’s results in this area Akbank Call Center provides • Acceptance of UnionPay approximated the scores of specialized services to more than branded credit cards and debit the world’s best technology 100,000 customers who prefer cards at Akbank ATMs, companies, demonstrating to receive service remotely. • Acceptance of Troy branded that the customer experience The Bank’s services in this cards at Akbank ATMs. rendered by the Bank particularly area focus on relationship and on digital channels figures among asset management rendered Customer Experience those of global leaders. During to Consumer, One-to-One, and Management the year, Akbank conducted SME segment clients. Akbank Akbank’s core priority is to deliver ethnographic user surveys, design Call Center will continue to an integrated and unprecedented workshops with end users, and operate with a Digital Banking customer experience at all points focus group studies in order to point of view and a vision of contact between the Bank design all digital banking channel centered on boosting sales, and the customer. Conducting experiences and products in a customer-oriented manner.
SUSTAINABILITY REPORT 2016 76 Value Added to Our Customers
The end goal of these initiatives to users thanks to the payments international awards during and customer-centric principles integration it implemented jointly 2016. In the first elimination is to position Akbank Direkt with the payment solutions round of the Best Digital Banks channels as the most preferred firm ComPay. Users shopping 2016 awards organized by within the Bank and to become on websites integrated with Global Finance, Akbank Direkt the most popular Direct Banking ComPay’s payments network was named “The Best in Mobile brand in Turkey. can now reach their Akbank Banking” in Eastern Europe and accounts through Akbank Direkt cleared the elimination round. Akbank Direkt Innovations Internet or Akbank Direkt Mobile, Akbank Direkt had also cleared Akbank Direkt continued to and pay for their purchases via the initial elimination round undertake successful initiatives money transfer from their Akbank at the same Global Finance in 2016 to provide products to accounts. competition in 2015 and was customers specific to Akbank voted “The Best Digital Bank” Direkt channels so as to address Thanks to the e-Government in Eastern Europe in the second their financial needs with the integration, Akbank users log round. Expanding the scope of fastest, most practical tools. into the e-Government portal application this year, Akbank automatically through Akbank entered the competition with all Akbank Wealth Management: Direkt using the customer the innovations and services on All You Need to Know About information retained on the all digital platforms that serve Investing Bank’s systems. Akbank Direkt customers – Akbank broke new ground in Akbank Direkt Internet, Akbank Turkey and made Akbank Wealth Digital Customer Satisfaction Direkt Mobile, Apple Watch, Management available to and Live Chat Service Apple TV, cash withdrawal with customers through Akbank Direkt The Live Chat Application, iBeacon and Security Code, Internet and Mobile in order to which was already available Wealth Management, Video Chat, provide customers with sound for Akbank Direkt Internet Plus and Mobile Web TV. As a result, guidance in their investment and My Business customers, last year’s “The Best Digital decisions based on their risk was also rolled out for regular Bank” award was joined by “The profiles and present them with customers in 2016. The existing Best in Mobile Banking” award, appropriate investment products. One-to-One Live Support service which encompasses all mobile was consolidated under the platforms this year. These awards The Investment Baskets name Online Support and made are a direct consequence of the product was also rolled out for available to all customers in Bank’s technology investments customers to quickly purchase an attempt to boost customer that reflect its mobile focus; those products recommended satisfaction. To this end and innovations centered on the to them based on risk profiles in order to evaluate feedback human component; and creative created in line with personal received from users, the marketing initiatives. investment preferences. Another Satisfaction Survey at the important innovation under Akbank Direkt Internet Logout New Technologies and Experience Akbank Investment Services is screens as part of the Akbank Improvements that customers can now video Smiley program was redesigned. In 2016, Akbank enabled conference with AkInvestment Akbank sought more detailed customers to perform cash investment advisors via Akbank and actionable feedback from withdrawal, payment, and money Direkt to receive personalized customers through the smiley transfer transactions with a investor recommendations. indicator that represents level single touch using the “3D Touch” of satisfaction as well as a functionality of the iPhone Developments in Open Banking space that accommodates more 6S and 6S Plus smart phones. and e-Government integration suggestions/complaints. Users reach the transfer and After becoming the first payment transactions quickly bank to open the Application Mobile Banking Innovations by clicking on the application Programming Interface (API) to all Downloaded by more than 10 logo on the phone’s main screen. application developers, Akbank million persons, the Akbank The improvement made this also made its Akbank Direkt Direkt Mobile application won year enables Akbank customers money transfer screens available a large number of prestigious to also access payment,
SUSTAINABILITY REPORT 2016 77 Value Added to Our Customers
INSURANCE SERVICES PROVIDING COVERAGE FOR CARDHOLDERS
cash withdrawal and transfer (Near Field Communication)- Akbank began providing the same transactions faster with a single enabled phones, and use them at convenience for iPhones and iPads touch via the dashboard in the all contactless POS devices the that run on the iOS operating Akbank Direkt Mobile application world over. While there are Turkish system as of May 2016. With this roll using “3D Touch” on iPhone 6S banks in the industry that provide out, the Bank began serving foreign and 6S Plus smart phones. mobile payment service, there national customers, in Turkey and are no other banks that provide 200 other countries, using iOS via It is a valuable experience for mobile payment service for all mobile channels, expanding its user customers to be able to use the Visa and MasterCard branded base. The Bank expanded its reach native features of their mobile debit and credit cards. thanks to this effort. devices on mobile apps. Similar to the “3D Touch” functionality Under the Remote Payments Akbank has posted nearly 2.5 times native to iPhone 6S and 6S Plus, Project, in addition to card- growth in the Turkish mobile banking another experience enhancement based payment transactions, the market, which grew quickly over added in 2016 is that Akbank Bank enabled users shopping on the last two years, significantly Direkt Mobile users can search e-commerce sites to pay for their boosting both its mobile customer frequently used banking words purchases with Akbank Direkt. count and market share in mobile so that they can reach Akbank Adding value to the existing transactions. Akbank owes its Direkt quickly with the help of card-based payment solutions, success in the mobile space to its the Spotlight Search feature on Akbank developed a trailblazing, mobile-first strategy, pioneering iPhone and iPad with iOS 9 and end-to-end digital solution where role in innovations, and the world- above. the e-commerce site receives leading customer experience it the payment within seconds – provides. Akbank will continue to World of Digital Payments with such as instantaneous money develop and enhance the Akbank Akbank Direkt transfer from the user’s account, Direkt Mobile application with its Digital payment solutions, or payment with Installment specialized in-house staff in 2017. expanding rapidly across the Artı Para (Plus Money) or via The Bank will also continue to lead, globe, are also growing in Turkey. Akbank Direkt Loan. As a result, setting an example for its rivals, The sector came to the fore after Akbank developed the first and pioneering the development financially and technologically digital payment solution, using of the industry, both in Turkey and advanced companies entered the instantaneous loan concept, worldwide. the market and launched in e-commerce transactions. digital payment platforms and Problems encountered frequently Training Program for Employees applications. in this channel during Remote Thanks to internal improvements Payments transactions – such and employee training programs, Akbank rolled out two major as insufficient credit card limit Akbank Call Center achieved upgrades – On-Device Payments or awaiting the confirmation of major efficiency gains in terms and Remote Payments – under its the website in money transfers of meeting the customer’s need digital payments initiatives. Since – were also resolved. Payment on a single call. Leveraging September 2016, as part of On- transactions that can be 16 years of sales and service Device Payments, the Bank has performed on Akbank Direkt culture experience, Akbank Call allowed users to make cardless Mobile were enriched in 2016 Center continues to record major payments using their Android with the addition of traffic fine, accomplishments in customer phones with the Akbank Direkt standardized test entrance fee, calls, product sales, specialist Mobile application over Host Card social security premium, and tax lines, complaint management, Emulation (HCE), the world’s most payments. and other related operations. secure and most advanced mobile Akbank Call Center employees payment technology. The project English Language Support for are also a source of skilled human empowers Akbank Direkt Mobile Akbank Direkt Mobile resources for all other Bank units users to define all their Akbank Already providing English language (e.g. Head Office and branches). credit cards and Neo cards for support in its Android application mobile payment on their NFC for consumer banking customers,
SUSTAINABILITY REPORT 2016 78 Value Added to Our Customers
DECISIVE STEPS TOWARD OUTSTANDING CUSTOMER SATISFACTION
Akbank employs advanced customer experience measurement and evaluation systems as part of its customer satisfaction-oriented service approach.
Pursuant to its customer daily feedback, Service Quality service. The situation in SLAs satisfaction-centric service Scorecards are created every is regularly reported, actions approach, Akbank expends six months in order to identify for improvement are adopted continuous efforts to constantly strengths as well as areas of in areas where the target is not improve customer satisfaction improvement. Actions plans are met and targets are increased in and raise it to new heights. devised for areas of improvement; areas where SLAs perform better The Bank executes various enhancements and continuous than the target. measurement, evaluation and development are accomplished enhancement processes in through these closely-monitored Internal Customer Satisfaction accordance with its objective of plans. Survey ensuring outstanding customer In addition to SLAs, the satisfaction at every point of Service Quality Measurement in satisfaction level of Akbank contact with clients. Light of Customer Feedback field employees with the Bank’s In addition to daily internal teams is assessed via the Service Quality Measurement, measurements, Akbank conducts Internal Customer Satisfaction Evaluation and Enhancement in-depth interviews at customer Survey. The Bank rolled out an Processes visits and studies at client sites innovation in 2016 where – in Akbank employs advanced to elicit feedback on service addition to the services provided customer satisfaction quality. The feedback gathered by Head Office staff to the measurement and evaluation from these interviews is input branches and regional offices – systems pursuant to its into customer satisfaction the quality of service provided service approach centered enhancement initiatives. by Head Office departments to on customer satisfaction. other Head Office departments Service quality levels at points Practices Related to Internal also began to be measured. of contact with customers, Processes Results of the survey are shared which comprise Branches, Service levels of Head of Units, transparently in the Bank; action Direct Channels, and Customer which support the points of plans are devised with the Complaint Management staff, customer contact, are also of participation of related staff to are measured regularly and utmost importance in enhancing ensure continuous development. they are certified twice a year. customer satisfaction. To this Measurements are conducted end, service quality is put Providing comprehensible, daily and feedback is solicited under the guarantee of Service simple and user-friendly screens from nearly 280,000 customers Level Agreement (SLA)s. SLAs at every point of contact with each year. Measurement results cover features such as quality, Akbank customers and staff is are monitored at the branch amount, frequency, delivery an integral element of service and employee level and are date, involvement and problem quality. Akbank measures the shared with related personnel solving time expected from ease of use of its screens via transparently. In addition to the units providing the support lab studies participated by
SUSTAINABILITY REPORT 2016 79 Value Added to Our Customers
DECISIVE STEPS TOWARD OUTSTANDING CUSTOMER SATISFACTION
customers; the Bank continuously that are below the target scores 1001 Ideas Suggestion System develops and improves the are considered as areas for All of the employees can make screens of Akbank Direkt improvement with development suggestions via the 1001 Ideas channels based on customer and efforts started. To assess and Suggestions System. After feedback. Similarly, Akbank expectations and satisfaction a pre-evaluation, ideas that regularly measures the user levels of our customers from are considered to be applicable experience of screens used by various segments and to identify are selected and action plans employees, and continuously areas to be improved, we also are made. Every month, the reviews internal systems and hold a Customer Satisfaction “Suggestion of the Month” is user interface designs based on Survey every year. chosen and the suggestion and feedback. its originator are announced to Innovative Ideas of Our all the employees. In addition, Permanent Solutions for Areas in Customers and Employees customer suggestions received Need of Improvement Akbank takes heed of customer via Akbank Call Center and social Akbank regularly reviews feedback and creative ideas and media are also regularly included customer complaints and suggestions from its employees in the Suggestion System and demands that are received in light of its target to fulfill the evaluated in the same way. from various channels, analyzes ever-changing and diversifying customer feedback and corporate customer demands and to serve 2,957 Suggestions Submitted data, regularly assesses the them better. During the 2016 operating year, results of these analyses, and a total of 2,957 suggestions - shares them with the Bank’s Initiatives are carried out 2,219 from employees and 738 related staff. With the oversight throughout Akbank to from customers - were submitted of the Customer Experience develop innovative ideas to the Akbank Suggestion Committee, the Bank develops and to objectively evaluate System. Since the launch of the corporate policies, practices and and implement these ideas. Suggestion System in 2008, a processes; tracks the changes There is a team of Innovation total of 5,184 suggestions have in the number and content Envoys, made up of nearly 200 been accepted and 40% of these of customer feedback; and employees from the Head Office, were implemented. implements concrete, permanent Regional Directorates and actions in the areas in need of branch employees. Innovation Customer Satisfaction improvement in order to enhance Envoys attend periodic In today’s fiercely competitive the customer experience. workshops to create new ideas business environment, managing identified in accordance with the customer experience beyond Customer Satisfaction Survey the Bank’s strategy and needs expectations and ensuring Our customers can inform of its business units, using satisfaction and loyalty to us on their expectations via their learning on creative and attain sustainable financial different channels. In addition, innovative thinking techniques success is critically important. we perform regular customer and internal innovation Customer satisfaction, in satisfaction surveys and research leadership. turn, requires proactive and to get feedback. We daily customer-oriented approaches monitor customer satisfaction Innovation-Oriented 1001 News that go well beyond receiving levels with feedback from the Bulletin and addressing complaints. The kiosks (interactive information Publishing a monthly bulletin, Akbank Customer Complaint terminals), web applications, “1001 News,” to create innovation Management Team was and direct phone calls. Outputs awareness among its employees, established in 2003 with the of the surveys and areas to be Akbank reports on innovative vision of supporting customers improved are regularly shared practices in the banking industry in their communications with with the channels and employees and other sectors for the the Bank, foreseeing the delivering the related services in reference of its personnel. problems they may experience, a special area in the portal. Areas and getting in touch with the customer proactively before
SUSTAINABILITY REPORT 2016 80 Value Added to Our Customers
the complaint takes shape. units whose input is sought contact performance. In an The Team was restructured for resolutions as well as with effort to increase the complaint under the name Customer Akbank Branches; these SLAs are management processes and Satisfaction Department in tracked periodically through the awareness and to integrate 2016 with overhauled processes system. Automatic notification inputs and outputs into the and an expanded organization. and escalation processes for corporate culture, awareness- The Customer Satisfaction SLA/OLA tracking are functioning oriented actions (e-learning, Department manages the flawlessly within the system, with Happy Customer Program, and relationship between all the results reported regularly to the like) are implemented. customers, regardless of channel the organization. or process, and the Bank; engages Information on the Bank’s in proactive communication The outcome of all submissions complaint management policy with customers in consideration can be viewed in real time and related procedures are of their sensitivities; supports through the Call Center and available in writing on the customers; and manages their Branch channels. Customers corporate portal platform for the complaints, appeals, demands can obtain the latest update on employees and under the “Our and suggestions, if any. the status of their complaints Customer Satisfaction Policy” by contacting the Call Center heading at the www.akbank.com/ Akbank’s in-house Customer or visiting an Akbank Branch. Contact Us tab for customers. Complaint Management In addition to these channels, system has an integrated and customers can also reach the Initiatives executed by Akbank to flexible infrastructure. The outcome information through measure customer satisfaction system performs the end-to- self-serve channels such as the include conducting CATI end management process of Internet Branch, www.akbank. (Computer Assisted Telephone customer feedback submitted com, and the interactive voice Interview) surveys with customers through any channel including the response system of the Call who have submitted a complaint. branches; monitors many details Center. The satisfaction approach is within this life cycle including assessed from the customer’s SLA/OLA compliance; operates In keeping with the goal of perspective via various methods in a paperless environment; is quick resolution of customer including the Net Promoter Score capable of effective reporting; complaints, Akbank offers the (NPS) and mystery shopping. and, most importantly, can be Live Support (Chat) service. The enhanced based on needs. Bank also monitors all complaints As part of Customer Satisfaction and demands on social media initiatives, Akbank tracks The average time of resolution, accounts such as Facebook, complaint data, both internally tracked on the basis of each Twitter, and Instagram; on within the Bank and in the form individual customer, was reduced consumer websites; and in print of regular reports to regulators in from three days to two days. and broadcast media. Akbank compliance with laws, rules and Meanwhile, SLA compliance gets in touch with customers in regulations. In addition, the Bank jumped from 60% to 90% and line with the SLA targets. leverages the knowledge it has the rate of resolution at the first Customer Satisfaction team gained and customer experiences point of contact increased from is in close interaction with to conduct systematic 65% to 90%. the entire organization due to analyses. Root cause analyses the nature of its function. All of complaints are utilized in Cases requiring support are Call Center employees and continuous improvement efforts transmitted to the branches experienced staff personnel for products, services, and and subject matter expert hold associate or undergraduate processes; allow for customer business units via work order degrees. In addition to the Bank’s expectation analyses for new assignments through the mandatory training, all employees products and services that complaint management system are supported by personal are being contemplated; and (SAP CRM) for their input and development training. The staff is become the de facto voice of the opinions. Currently, 29 Service equipped with the banking skills customer within the Bank. Level Agreement (SLA)s and financial competency needed are in place with all business to maximize resolution-at-first-
SUSTAINABILITY REPORT 2016 81 Value Added to Our Customers
DECISIVE STEPS TOWARD OUTSTANDING CUSTOMER SATISFACTION
The Akbank Customer The Customer Complaint Akbank entered into a direct Satisfaction Department Management System, which cooperation with Facebook operates in this broad range was integrated in 2009 with and became one of two Turkish of unlimited potential with numerous channels that brands to deploy Canvas, a high level of recognition customers make submissions Facebook’s most important new within the organization. The through, was recognized as ad model in 2016. In addition, Department renders exclusive a global success story in the Akbank is the first and only bank services to customers with a banking industry the same in the world to work directly sensitive perspective, with the year. The Bank’s Social Media with Facebook to use Canvas. vision of being a team that Management initiative, executed Using the sales-oriented Custom listens to, understands, and under the Customer Satisfaction Audience application based on empathizes with the customer; Department, registered a major customer data on Facebook, generates customized and quick accomplishment in its first Akbank began showing users the solutions; turns complaints year of operation. In October products and campaigns they into satisfaction; and creates 2012, it won the Gold award most need with targeted ads. awareness within the Bank by in the “Customer Complaint Akbank is undertaking efforts for sharing its experiences. Management Department credit card sales, loan origination, of the Year” category at the Serbest account opening, and Successful Performance competition organized by download/use of the mobile app Bolstered by Awards and IMI Conferences, the most on social media. Thanks to these Certifications prestigious organization in initiatives, some 28% of credit After receiving ISO 10002 its field in Turkey. In addition, card sales made on the web Complaint Management the Bank garnered the Gold are initiated on the Facebook Quality Certification from the award in the “Customer Service channel. international firm BSI (British Complaints Team of the Year” Standards Institute) in 2007, category at the international The costs of card sales and Akbank successfully renews its Stevie Awards competition in mobile downloads on this channel certification process through 2014. were below those of digital regular audits conducted on channel averages. The Bank an annual basis. Pursuant to Akbank is committed to began studying the actions the complaint management administering the customer of potential users on digital model put in place under the complaint management initiative channels as part of social media certification process, which was effectively in keeping with ad targeting efforts. renewed for the ninth time in service quality and customer 2016, the Bank is committed to experience principles as well as The Bank’s social media ads a customer satisfaction policy, efficiency, by creating awareness reached 900 million targeted related goals, and continuous and making a difference in displays. improvement principles. Further, pursuit of ambitious goals. Akbank reaches much higher CRM levels in terms of business Social Media and Community Akbank CRM Department conduct, process management, Management completed comprehensive service quality and customer- Akbank has a total of 3.1 million projects under the major oriented approach principles. followers across all its social categories of sales and marketing media channels. The Bank automation, real-time marketing, communicates with customers customer analytics, pricing and through 26 Akbank accounts on optimization, and designed and various social media channels. implemented its CRM approach in 2010.
SUSTAINABILITY REPORT 2016 82 Value Added to Our Customers
Akbank received the “CRM PROCESS MANAGEMENT AND OPERATIONAL EFFICIENCY Excellence” Award from Gartner BUSINESS DEVELOPMENT Continuing to expand steadily, in the “Integrated Marketing” Akbank adopted the Business Akbank aims to manage the category in 2011, “Customer Process Management (BPM) growth process with its existing Analytics” category in 2013, approach as the methodology resources. This, in turn, is possible and “Sales Effectiveness” for business processes only with an operational model category in 2014, becoming the management. With this approach, that focuses on efficiency and first Turkish bank and Turkish all elements are evaluated in digitalization. Armed with this company to win the “CRM a holistic manner (especially awareness, Akbank conducted Excellence” Award for the third information technologies, data, a thorough review of more than time. The “Spot on, Akbanker” organization and product); thus, 1,350 processes in 2016 as part application is a new digital customers’ needs are met more of the “Improvements for You” platform that was developed to efficiently and quickly. Akbank program that initially launched manage the Bank’s targets more adopted the Business Process in 2012 to boost work efficiency effectively within the day to day Management (BPM) approach as at the branches and Operations workflow and which is designed the methodology for business Center. to award success. The platform processes management. aims to maintain a fast pace Customer-oriented and efficient As part of efforts to digitalize within a pleasantly competitive processes are designed and the Bank’s processes, nearly environment, and enhance sales implemented under this approach. 200 process improvements were motivation and concentration made while additional capacity on periodic targets. This Continuous Development is Main corresponding to a workforce gamification platform, a first in Goal capability of 500 employees was its respective area nationally, Akbank’s business development created in 2016. The Paperless supports Akbank’s customer- initiatives are carried out Bank project that was initiated oriented strategy. The Key using Continuous Improvement in 2016 conserved more than 30 application combined customer techniques and the Lean million tons of paper and saved and CRM portfolio priorities Methodology. Continuous nearly 3,000 trees. Further, in the portfolio management Improvement refers to using Akbank began to redesign all approach, creating a construct the results of the customer processes from scratch, one by that ensures multi-purpose work satisfaction surveys and service one, with the goal of complete reflex, proactive multiple sales level reports to review and digitalization. and marketing, deeper client improve business processes relationships, and efficiency from the viewpoint of customers In 2017, Akbank plans to execute gains. as well as improving existing initiatives related to effective processes, products and services use of technology as well as Akbank will sustain its industry to meet customer expectations opportunities for efficient and leadership in CRM, particularly as effectively as possible. effective operational processes. in next generation analytic This effort is aimed at delivering solutions, customer-based the best customer experience and pricing, and revenue optimization, attaining more efficient business will continue under digital and processes. real-time banking vision.
SUSTAINABILITY REPORT 2016 83 Our Distinctive Employees
SUSTAINABILITY REPORT 2016 84 Our Distinctive Employees
Akbank strives to be the choice of the “Best Professionals” in its recruiting practices to ensure the sustainability of its financial and operational success.
Our Human Resources Vision • Using a reward mechanism a technical understanding Employing the most qualified that encourages and supports of major business lines of human resources in the Turkish superior performance of banking and speaking the same banking industry and investing in employees by way of a goal language with other employees this resource to create value for and competence-based, in the organization on a all of our stakeholders. transparent performance technical level, management system, • Continuously helping the Bank’s Our Human Resources Mission • Undertaking system and employees with its expertise, In an effort to support Bank in process improvements for know-how and experience in its journey toward Sustainable employee engagement. order for them to improve the Leadership, retaining highly • During the course of carrying performance of their units qualified human resources at out these objectives, Akbank’s as well their own personal Akbank and recruiting new ones, Human Resources Department performance, improving the existing human embraces the principle of being • Respecting open resources systems and practices as the Strategic Business Partner communication, confidentiality part of this process, designing new of the business units. of personal information, sense ones and carrying out effective of justice, and compliance with communication regarding these. Human Resources Operating code of ethics, Principles • Planning and implementing Purpose of Our Human Resources • Structuring and assessing all proactive applications and Management employees in accordance with activities with regard to • Recruiting the best candidates the objectives and performance the management of the for the Bank, of the organization, organization and its human • Constantly developing the • Recruiting new employees who capital without waiting to be corporate culture and business will fit in with the Bank’s culture asked to do so, conduct, and values, • Establishing and implementing • Building the organizational • Being internal and external coherent, integrated and structure in accordance with customer-oriented, always sustainable systems strategic objectives and prioritizing this focus in work throughout the Bank, creating a ensuring its continuity in relationships, harmonious synergy by ensuring order to safeguard the Bank’s • Supporting all employees with the participation of all units in effective and productive the best human resources this effort, operation, applications without • Developing practices to help • Making effective investments in discriminating on the basis of individual business units human resources in accordance language, religion and sect, attain their goals or making with targets and strategies, race, gender, age, political belief adjustments to existing Bank • Carrying out participatory or faith, practices on an as-needed career planning, • Ensuring the coherence basis, between business objectives and HR practices by having
SUSTAINABILITY REPORT 2016 85 Our Distinctive Employees
• Creating an environment who do not have professional the Bank pays an additional salary where employees can improve experience in order to develop to employees who speak a foreign themselves and support their future leaders and to offer them language. In addition, personnel development, career opportunities within the who perform better than their • Ensuring that everybody banking sector. benchmarks are awarded through at the Bank acts with the various rewards programs. awareness that human resource Social Policy Practices management is the core Supportive of Local Employment Fair Compensation Policy function of all managers, As part of business performance Akbank’s entry level • Taking heed of and solidifying and productivity, vacant compensation policy is the same the Bank’s corporate culture positions within the organization in all branches and service points. in all decisions taken and all are first announced to Akbank In recruitment of employees with practices carried out. employees. Applications of no previous work experience, Akbank employees for new parallel to minimum wage for The Choice of the “Best positions are evaluated quickly Assistants, and above 35% for Professionals”: Akbank and appointments of worthy Management Trainees. Akbank strives to be the choice candidates are made. While of “Best Professionals” in its recruiting for the Head Office Full Compliance with Legal recruiting practices in order to and branches, Akbank prefers Reporting Processes ensure the sustainability of its to recruit candidates living If significant changes occur in financial and operational success. in regions close to its service the employment contracts of locations. In our Malta branch, employees, notice and notification Akbank’s human resources Akbank pursues a policy of periods stipulated in the Labor practices are aimed at making the employing local residents. Code and HR Applications Bank: “the leader among the most Principles are in effect. The preferred employers where creative, Tenure and Expertise-Based minimum notice period varies dynamic and confident people who Compensation Policy based on the tenure of the create value choose to work and Compensation policies of employee. It is set at two weeks a company which employees are companies are among the for employees who have been with proud to be a part of.” important factors in employee the Bank for less than six months; loyalty and performance four weeks for employees who Human Resources Focused on improvement. Therefore, have been with the Bank between Continuous Development Akbank’s compensation policy six months and 1.5 years; six The Bank’s recruitment policy is is structured to attract the weeks for employees who have to hire qualified, well-educated, human capital required for been with the Bank between 1.5 innovative people who are open continuous success and to years and three years; and eight to learning and developing reward, to motivate and to retain weeks for employees who have constantly and who are eager high-performing employees. been with the Bank for more than to create value for Akbank Akbank’s compensation policy three years. In case of transfers, and its stakeholders, without is formulated compatible with employees are given three days discriminating on the basis of the Bank’s operations, long-term for commencing their new posts in race, language, religious belief, objectives, and risk management the same province and 15 days in gender and age. Akbank pursues structure. In order to ensure fair another province. If an employee a fair hiring policy focused compensation, employees with is transferred to a different unit, on equal opportunity, based similar roles and responsibilities he/she can communicate with the upon predefined recruitment are paid similar salaries and Human Resources Unit to state criteria. As part of this effort, those who perform better than opinions on the change. Akbank strives to hire the most their benchmarks based on appropriate candidates in the results of the Performance Human Resources Profile the most suitable position by Evaluation System receive higher Some 95.3% of Akbank employees employing competence-based raises and bonuses. are university graduates. The objective measurement and average tenure at Akbank, evaluation methods. To this end, In an effort to encourage the which differentiates from the it is among Akbank’s utmost development of personal growth competition with its skilled human priorities to recruit new graduates and competencies within Akbank, capital, is 8.3 years while the average time of service is 9.2 SUSTAINABILITY REPORT 2016 86 Our Distinctive Employees
years in the banking industry. Some Akbank has a total of 13,852 period of university students, all 70% of Akbank employees work employees, including the Members employees are permanent and at branches, which are one-to-one of the Board of Directors. full-time. Benefits provided for contact points with customers. full-time employees may only Akbank initiated half-time vary depending on the person’s Our Employees in Figures positions for the first time in performance. At Akbank, which boasts a 2016; the Bank currently has 11 continuously expanding service half-time employees. Including A breakdown of our employees by network, as of December 31, 2016, one to three months of internship service location is presented in the table below.
Number of Our Employees 2014 2015 2016 Head Office* 1,819 1,598 1,343 Akbank Banking Center 3,080 2,546 2,753 Regional Directorates** 923 900 924 Branches*** 10,483 9,006 8,823 Overall 16,305 14,050 13,843
* Excluding the Board of Directors. ** As reported in previous years, employees at the Regional Credit Directorates are included in the Regional Directorates, not the Head Office, although they report to the Credits Business Unit located at the Head Office. The reason is that these employees are actually working in the field. *** Including employees at Malta branch.
In case of necessity, Akbank generates employment through outsourcing. The number of employees working especially in the Direct Banking, Consumer Banking, Corporate investment and Private Banking, Financial Coordination, Information Technologies, and Operations Business Units are available in the table below.
2014 2015 2016 Number of Employees within the Outsourcing System* 1,668 2,837 3,383
Gender Distribution Akbank embraces the principle of equality of opportunity without any discrimination on the basis of gender or age. The ratio of female and male employees within the Bank have remained roughly the same over the years. At end of year 2016, the share of female employees decreased by 0.3 percentage points to 53.5%.
Breakdown by Gender (%) 2015 2015 2016 Staff Male Female Male Female Male Female Board of Directors 88.9 11.1 88.9 11.1 88.9 11.1 Senior Management 65 35 65.7 34.3 66.6 33.4 Mid-level Management 47.3 52.7 48.2 51.8 49.3 50.7 Auditors 66.7 33.3 67.3 32.7 65.5 34.5 Other* 74.0 26.0 74.1 25.9 69.7 30.3 Security 99.4 0.6 0.0 0.0 0.0 0.0 Overall 48.9 51.1 46.2 53.8 46.5 53.5
* Includes non-banking posts such as lawyers, architects, engineers, support staff, and technicians.
SUSTAINABILITY REPORT 2016 87 Our Distinctive Employees
Age Distribution The average age of Akbank employees is 34.2 as of year-end 2015. In almost every staff category, the largest age group is 30-50. The largest groups in the under 30 category are Assistant Managers and Auditors.
Pursuant to the Bank’s recruitment policy, only those of full legal age can work at Akbank. There are no employees under the categories of child labor (employees under 15 years of age, at which compulsory education ends) or young labor (over the minimum age for employment and under 18 years of age) at Akbank. Students and young workers applying for an internship at Akbank must be seniors if they are high school students and sophomores or juniors if they are university students. Some 77 university students were employed as interns at the Head Office units between June 2016 and September 2016. The number of student interns at Akbank has a seasonal pattern; there was one intern on the Bank’s payroll as of year- end 2016.
Breakdown by Age 2014 2015 2016 (%) Staff Under Between Over 50 Under Between Over 50 Under Between Over 50 30 30 and 30 30 and 30 30 and 50 50 50 Board of Directors 0.0 33.3 66.7 0.0 11.1 88.9 0.0 11.1 88.9 Senior Management 0.0 95.7 4.3 0.0 95.9 4.1 0.0 95.7 4.3 Mid-level 2.1 96.5 1.4 1.3 97.8 0.9 0.8 98.4 0.8 Management Auditors 46.6 53.4 0.0 45.6 54.4 0.0 34.0 66.0 0.0 Assistant Managers 39.8 60 0.2 39 60.9 0.1 38.0 61.8 0.1 Other* 15.4 79.3 5.3 11.6 81 7.4 20.5 73.0 6.6 Security 42.8 57.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Overall 29.7 69.4 0.9 26.4 72.8 0.8 24.7 74.5 0.8
* Includes non-banking posts such as lawyers, architects, engineers, support staff, and technicians.
High Rate of Continuous Workforce Employee turnover rates and numbers based on location are presented in the table below. The Human Resources Department analyzes the feedback from employees who have left the Bank regarding their reasons for leaving and improvements are made in business processes according to these findings.
Employee Turnover Rate* 2014 2015 2016 Rate (%) Number Rate (%) Number Rate (%) Number Head Office 12.27 234 22.16 363 14.28 204 Akbank Banking Center 11.31 347 20.29 591 12.69 334 Regional Directorates** 8.55 75 11.69 104 10.42 93 Branches 9.30 976 15.25 1,392 11.45 1,018 Overall (average) 9.98 1,632 16.82 2,450 11.91 1,649
* Employees who have left the Bank (including those who retired, resigned, and those whose work contracts were terminated). ** As in previous years, employees at the Regional Credit Directorates are included in the Regional Directorates category, rather than the Head Office category, even though they report to the Credits Business Unit located at the Head Office, since these employees are actually working in the field.
SUSTAINABILITY REPORT 2016 88 Our Distinctive Employees
Employees are free to resign so long as they comply with the terms of their employment contracts. Forced labor is outside of Akbank’s business principles.
Employee turnover rates depending on the age group are presented in the table below:
Employee Turnover Under 30 Between 30 and 50 Over 50 Rate by Age Group
2014 2015 2016 2014 2015 2016 2014 2015 2016
Rate (%) Number Rate Number Rate Number Rate Number Rate Number Rate Number Rate Number Rate Number Rate Number (%) (%) (%) (%) (%) (%) (%) (%)
Head Office 17.22 62 19.67 53 23.80 46 11.00 164 22.10 290 12.53 148 14.24 8 34.43 20 18.52 10
Akbank Banking 19.77 177 31.16 227 31.19 180 7.75 166 15.79 340 7.43 151 12.83 4 77.63 24 13.79 3 Center
Regional 18.91 36 18.18 36 12.54 24 5.48 37 9.41 64 9.30 64 17.91 2 33.33 4 38.71 5 Directorates*
Branches 12.15 310 19.68 379 15.85 278 8.01 631 13.77 984 10.12 717 54.40 35 55.77 29 47.92 23
Overall (average) 14.63 585 22.26 695 19.44 528 8.19 998 14.86 1,678 9.83 1,080 30.09 49 50.33 77 30.00 41
* As in previous years, employees at the Regional Credit Directorates are included in the Regional Directorates category, rather than the Head Office category. Even though they report to the Credits Business Unit located at the Head Office, these employees are actually working in the field.
Employee turnover rates by gender are presented in the table below. The percentages of male and female workers who left their jobs are close to each other. The reason for higher employee turnover rates among females compared to males at the Akbank Banking Center is that number of female employees is higher at the Center.
Employee Turnover Male Female Rate by Gender
2014 2015 2016 2014 2015 2016
Rate Number Rate Number Rate Number Rate Number Rate Number Rate Number (%) (%) (%) (%) (%) (%)
Head Office 14.94 171 19.61 180 12.73 104 8.35 63 25.41 183 16.35 100
Akbank Banking 7.8 5 101 15.28 197 11.11 133 13.81 246 24.28 394 14.01 201 Center
Regional Directorates* 8.50 46 8.87 47 8.73 47 8.64 29 15.81 57 12.98 46
Branches 8.81 437 14.41 558 10.54 408 9.73 539 15.88 834 11.79 590
Overall (average) 9.52 755 14.85 982 10.77 692 10.43 877 18.45 1,468 12.65 937
* As in previous years, employees at the Regional Credit Directorates are included in the Regional Directorates category, rather than the Head Office category. Even though they report to the Credits Business Unit located at the Head Office, these employees are actually working in the field.
SUSTAINABILITY REPORT 2016 89 Our Distinctive Employees
PERFORMANCE them better, get involved with determined by cooperation their jobs and stay motivated to between the business units MANAGEMENT OF attain their targets, and the Human Resources SHARED GOALS • Encourage continuous Department. development via open Akbank’s transparent and flexible communication and regular Career Management Policy Performance Management feedback and to increase The career management function System is capable of responding motivation, plays a strategic business to changing needs and • Evaluate contributions and partner role in supporting the conducive to improvement performances of employees in realization of the Bank’s goals. in managing the talents and a fair and objective manner and To this end, Akbank’s priority is experience of its employees to shape their competence in to position the existing human effectively in accordance with line with the needs of Akbank, resources in the most productive its corporate goals. In an effort • Make correct decisions about way while creating effective to sustain the Bank’s successful career planning, training medium and long-term career financial performance, Head and other human resources plans to ensure the development Office employees go through processes of employees of the Bank and the employee. performance evaluation once a and to ensure their personal year while field personnel perform development in line with such Fair and Effective Performance this process twice each year. As processes. Management a result of this evaluation, areas Pursuing a career management of development are identified for Transparent Processes for policy that gives priority to employees and various training Evaluating Senior Management’s promotions and transfers from and development opportunities Performance within the organization, Akbank are organized in these areas to Performance evaluation of continued efforts to develop a support their career development. Akbank’s senior management fair and effective performance Performance evaluations allow is based on both the Bank’s management function; to identify, the Bank to determine employees’ overall year-end performance monitor and develop skills; and competence levels for a variety and success criteria that to provide career opportunities of roles and responsibilities. support long-term sustainable for employees where they can Accordingly, the Bank’s performance. As part of this prove themselves in 2016. To employees get the opportunity effort, Akbank employs the ensure the continuity of the to continue their Akbank careers Balanced Scorecard application. organization in the future, the in other business units based on Performance of the senior Bank devises succession plans organizational needs and their management is measured on for each position based on the own preferences. the basis of such perspectives level of experience, competencies as finance, customer, internal and technical skills of employees; The aims of the Performance processes, and human implements the training and Management System developed resources. Therefore, the senior development programs to prepare with a management approach management’s indicators of the related employees for the that supports and encourages goals and success also include envisioned positions; and closely high-level performance are to: performance criteria such as monitors the course of action in customer satisfaction, employee conjunction with the business • Enable employees realize satisfaction, and employee units. In addition, branches and their corporate targets turnover rate in addition to units are visited to make career and to increase corporate financial criteria. interviews and this creates performance, effective communication in terms • Guide and develop employees The criteria of the Akbank of career management. in order to meet their changing Performance Management and developing needs better, System are based upon personal Employee Career Maps on the • Align the Bank’s goals with the goals and competencies. The Corporate Portal personal goals of employees, types, weights and numbers Career maps that encompass • Ensure that employees of goals and competencies career steps are posted on the understand what is expected of in the performance forms are corporate portal. As a result,
SUSTAINABILITY REPORT 2016 90 Our Distinctive Employees
employees have access to with additional rights inherent in Optional Private Pension System detailed information on career Akbank Staff Retirement Fund with Corporate Contribution maps and job families as well as Trust’s status, this support is In addition to AkSandık pension, the contact information of the improved. Akbank employees are also Human Resources team member offered Private Pension System assigned to support them and Retirement Practices Based on (PPS) Services with some consult with them regarding their Employee Tenure corporate contribution. Senior career development. All of the Premium injections into Aksandık and mid-level managers and career principles are stipulated (Akbank Staff Retirement auditors are included in this PPS in detail in the Human Resources Fund Trust) are 33.5% of the plan with corporate contribution Implementation Principles employee salary, on condition optionally. Our Bank contributes document and shared with the that it is taken within the to savings of such employees by employees. maximum monthly revenue making additional payments to identified by the law annually the PPS contracts of the above- BENEFITS TO for insurance premiums. Some mentioned employees in a certain 14% of this is deducted from the ratio of their monthly gross EMPLOYEES employee’s salary and 19.5% is salary. Thus, we help Akbank the contribution of Akbank. In employees make savings and Akbank Staff Retirement Fund addition, premiums amounting continue with the same living Trust (Akbank Tekaüt Sandığı) to 2% of total annual revenues standards in their retirement. All our current and retired of employees are deposited by Akbank employees and their Akbank to the Trust’s account, In order to improve employee dependents are registered at the again on condition that these are loyalty and motivation, we attach Akbank Staff Retirement Fund within the stated limits. a special importance to the PPS Trust (Akbank Tekaüt Sandığı), with corporate contribution independent of Turkey’s Social In order to earn the right and try to increase the number Security Agency. Pensions and to benefit from retirement, of employees participating in healthcare services offered to employees should fulfill this plan. As a result of such the members of this Fund Trust requirements such as completing efforts, the number of employees are of higher quality than the a certain period of insurance, participating in PPS with basic services offered by the having fully paid premiums for corporate contribution increased state owned Social Security the required number of days, from 4,227 at 2016 year-end. Agency. and having reached a certain age. Employees who fulfill Collective Bargaining Agreement Retirement Applications these conditions are provided In our Bank, all employees can Akbank Staff Retirement with pension by Akbank Staff become members of BANKSİS Fund Trust is a social security Retirement Fund Trust upon (Union of Bank and Insurance institution as a legal entity that their demand. In calculating the Employees). Financial rights provides social insurance support pension, the main parameters and administrative relations of to members using the insurance are the working period of the BANKSİS members are defined premiums collected from employee, total income within by the Collective Bargaining employees and employer, with the this period and age, as well as Agreement, while those of non- provided rights not being inferior consumer price index change members are defined by the HR to those provided by the Social rates and development rates in Applications Principles. Security Agency. Conditions for our country. Due to such variable earning the right to benefit from parameters, monthly pensions Other Employee Benefits insurance support are in parallel may differ for each employee. Attaching great importance with legal regulations; however, to employee satisfaction in boosting work productivity,
SUSTAINABILITY REPORT 2016 91 Our Distinctive Employees
Akbank offers employees various • Equal opportunity in EMPLOYEE HEALTH fringe benefits based on the performance evaluation and position in addition to the core promotions AND SAFETY benefits such as salary, bonus, • Career support practices Fully complying with its legal incentive compensation, and • Investigation of feedback and and regulatory obligations foreign language allowance. communication and corporate in occupational health and The position-specific fringe advertising safety, Akbank employed an benefits category includes occupational physician and an financial liability allowance, In the independent audit for the occupational safety specialist vehicle, fuel limit, toll allowance EOM project, it was examined at the Akbank Head Office and (OGS/HGS), mobile phone and/ whether Akbank’s corporate Banking Center. Akbank aims to or voice line, internet access, policies and procedures, employ an occupational physician iPad/tablet, laptop computer, recruitment and selection and an occupational safety transportation, parking, public processes, training, performance specialist in all branches and transit fares, and clothing evaluation, promotion, career service buildings of the Bank as assistance. Meanwhile, the social support practices and corporate of July 1, 2017 in compliance with assistance category comprises communication activities, the governing legislation. relocation allowance, travel per support the concept of equal diem, goods transportation fee, opportunity. As a result of the In addition to its occupational death and injury indemnity, and audit, Akbank earned the Equal health and safety practices that natural disaster assistance. Opportunity Certificate, which is were designed in accordance with Besides, corporate discount valid for two years. international standards, Akbank opportunities are provided from also ensures the sustainability various companies for Akbank Akbank Becomes Signatory to of the work productivity of its employees. WEPs staff with high-quality health In 2016, Akbank became services. Employees are entitled Akbank Is Involved in the Equal signatory to the Women’s to services at healthcare centers Opportunity Model (EOM) Project Empowerment Principles (WEPs), in certain provinces as part of We completed the preparations a private sector venture by the Aksandık’s healthcare services. for the Equal Opportunity Model United Nations that aims to Employees who reside in the (EOM) project in cooperation with empower women to take part in provinces where a Foundation KAGİDER (Women Entrepreneurs all sectors and at all levels of Healthcare Center does not exist Association of Turkey) in 2011 economic life. can get service from affiliated and the project was launched healthcare providers. in 2012 with technical support Established in 2010 through a from the World Bank. Eleven partnership between the United Health Information Processes corporations - including Akbank Nations Global Compact and the through Internal Communication - that agreed to take part in United Nations Entity for Gender Channels the project were audited by an Equality and the Empowerment Information on epidemics and independent institution in line of Women (UN Women), the other important diseases is with 22 criteria. WEPs Platform offers practical provided regularly under the guidance to the private sector “Health Column” published on These criteria are divided into on how to empower women in the Aksandık website. In cases of two parts - namely main criteria the workplace, marketplace emergency, e-mail notifications and supporting criteria. The main and community to ensure social are sent. In addition, the Bank criteria are as follows: gender equality. conducts fire and earthquake drills and administers natural • Management’s commitment to As a result, the Bank’s human disaster trainings. equal opportunity resources approach, which is • Equal opportunity in based on equal opportunity recruitment and selection in full, and related initiatives • Equal opportunity in access to conformed to the global platform. trainings
SUSTAINABILITY REPORT 2016 92 Our Distinctive Employees
Parental Leave Lost Workdays Which Have Been CAREER Akbank’s female employees Consistently Decreasing are entitled to 16 weeks of paid Due to the nature of its DEVELOPMENT maternal leave - eight weeks operations and as a result of Continuous Development and before and eight weeks after its systematic occupational Training to Achieve Corporate the birth. They can also take health and safety initiatives, Goals unpaid maternal leave for up occupational diseases or Akbank’s training system, which to six months and 1.5 hours per workplace accidents are not has strategic significance for the day for breastfeeding until the experienced at Akbank. Yet, the Bank, supports the development child reaches the age of one. total absenteeism (lost days) of of all employees and aims to In the case of an adoption of a 5,678 employees who received increase motivation and work child younger than three years sick leaves with official health satisfaction. In full awareness old, one of the spouses can take reports amounted to 52,600 of the fact that information is a maternity or paternity leave calendar days in 2016. a significant asset and well- of eight weeks beginning on the equipped human resources is a day they are united with their Average sick leave per person, major competitive advantage, the adopted child. calculated by dividing this Bank organizes training activities figure by the average number of to contribute to the personal Employees returning from a legal employees, is 3,8 days per year. and professional development paid maternity leave have the This ratio was 3,7 days in 2015 of its employees. Akbank optional right of working half- and 2,6 days in 2014. designs its training courses in time (20 hours per week) within accordance with corporate goals certain timeframes. Upon the Occupational Health and Safety and strategies, needs of the request of the employee, Akbank Councils Open to Employee sector, and areas of development allows for unpaid leave of half of Participation that were identified based weekly work hours for a period Complying meticulously with upon employee potential and of 60 days after the first birth, occupational health and safety preferences. 120 days after the second birth, laws and regulations, Akbank and 180 days after the third formed an Occupational Health In line with the goal of moving and subsequent births. These and Safety Council, at the Akbank forward into the periods are increased by 30 days, Head Office and at the Banking future, the Bank’s career respectively, in the event of a Center. The council meetings management strategy is based multiple pregnancy. This leave is are held quarterly and attended on a multifaceted approach to extended to 360 days if the child by the Employer Liaison, ensure success. This approach has a disability. In the event of an Occupational Safety Specialist, underscores relationship adoption, only one of the spouses Workplace Physician, HR/Social management, quality, efficiency, is entitled to take this leave. Affairs Liaison, and Employee and sustainability; offers Representative. recommendations to the business Employees whose wives have units and field operations under given birth are also entitled to a proactive business model; five days of paid leave. Aksandık embraces a customer focus Fund meets child delivery costs rather than a product focus; and of Akbank employees and focuses on development sources. provides a variety of additional benefits. Some 759 Akbank Akbank Academy employees went on maternity Akbank Academy continued leave during 2016; 25 of these its successful operations in employees resigned from the 2016. The Academy aims to Bank at the completion of their develop the best professionals maternity leave or unpaid leave. in the industry and to transform training into an investment tool for staff members. As part of its activities in 2016, the Academy focused on the employees’ areas of development and SUSTAINABILITY REPORT 2016 93 Our Distinctive Employees
initiated efforts to increase Survey results are significant conducts Basic First Aid and First the penetration of personalized in terms of evaluating and Aid Refresher training programs. and easily accessible training improving the content of the methods. By actively encouraging training, instructors and training As of 2017, Akbank employees participation in overseas and environment. All questions, whose positions necessitate domestic summits, conferences requests, suggestions and Private Pension System (PPS) and seminars, the Bank enabled opinions regarding the training and Insurance Training Center employees to closely follow courses can be e-mailed to (SEGEM) licenses are required, relevant developments in the Akbank Academy at akbank. as a prerequisite, to hold the world and in the banking industry. [email protected]. related licenses in order to Under the Akbanker Get- advance in their respective career togethers in 2016, Akbankers Classroom training is also paths. This new requirement was began to come together with supported by distance learning announced to the personnel. subject matter expert guests in tools in Akbank Academy’s numerous venues, including lunch training and development It is critical for the Bank’s seminars, Academy TV, webinars, programs. We administer future success that Akbank and spontaneous meetings. The orientation training through a employees whose positions events entail a wide range of combination of classroom based require professional certifications subjects, from technology and training and remote training for possess Capital Markets Board innovation to psychology and employees who just joined the (CMB), Insurance Training marketing. Further, Akbankers Bank or were recently appointed Center (SEGEM), and Private also share their knowledge and to a new position. The Academy Pension System (PPS) licenses, experience in their own areas of designs e-learning programs to both to comply with the legal expertise that is of interest to the accelerate the learning curve of mandates and to support Bank overall. trainees regarding new products staff development. Akbank and processes while also encourages broad participation This academic organization offering supplemental distance in these exams. Akbank Academy created by Akbank helps learning modules in a variety supported the licensing exam employees successfully carry of technical subjects. Akbank preparation efforts of employees out their existing job functions Academy provides personal by administering classroom while also preparing them for the development-oriented classroom training, e-learning and practice position they are applying for. training programs such as tests and by making available Management Trainees and Head customer-oriented service, phone question banks. Office and branch employees communication, presentation with “Assistant” designation in techniques, negotiation In 2016, some 1,098 employees their job titles, who just joined the strategies, innovation, creative were licensed out of the 1,456 Bank without any prior experience thinking techniques, and staff members who took the in the banking industry, attend managerial skills. The Academy PPS licensing training and exam; “Management Trainee” and “Core also employs both classroom meanwhile, 700 employees were Banking” programs. training and distance learning licensed out of the 2,006 who tools for development programs took the SEGEM certification Akbank managers, who are the that will help staff members exam during the year. Some leaders of today, are supported adapt to working life while also 98 of the 2,898 personnel who via classroom training, one- benefiting them in their personal took the Capital Markets Board to-one consulting and online lives. Relevant topics covered (CMB) exam in 2016 obtained the applications in executive include stress management, time license. development training programs to management, communication groom the leaders of tomorrow. techniques and team building. A total of 867,785 hours of training was administered Feedback from the participants Pursuant to applicable laws and in 2016, corresponding to an is of critical importance for the regulations, the Bank administers average of nine days of training effectiveness and success of the Occupational Health and Safety per employee. training efforts. All feedback is training for all employees, in both submitted to Akbank Academy classroom training and e-learning by way of online surveys. formats. In addition, the Bank
SUSTAINABILITY REPORT 2016 94 Our Distinctive Employees
We’re Ready for the Future As part of its certification • Project Management (Akbank Academy Portal) training initiatives in Professional - PMP exam held The Akbank Development 2016, Akbank focused on by the Project Management Center portal, restructured with corporate strategies, industry Institute (PMI), which awards the motto “We’re ready for the developments and segment the most widely accepted future,” Akbank Academy Portal, needs; administered programs certificate on Project is a platform within Akbank that will support employees in Management continuously supporting the pursuit of their career roadmaps; • Certified Documentary Credit development of the Bank’s and integrated career principles Specialist (CDCS) exam held by employees where they can with training. In addition, the the ICC National Committee manage their training planning Bank retooled the content and of Turkey, which offers the in accordance with their career scope of its training for branch opportunity of earning the progression. Akbank employees manager candidates, designed internationally accepted title can continue their development training programs specific to of Certified Letter of Credit 24/7 at home or in the office via skills needed for leadership Specialist the Akbank Development Center, positions, and finalized the • Certified Information Security which contains all employee process of harmonization with Manager (CISM) Information e-training modules and can be existing career principles. technologies security reached online at any time from management exam held by any location. Employees can see Akbank initiated systemic efforts ISACA (Information Systems their individual training calendar, to make the Bank’s current career Audit and Control Association) request training, and get certification process specific to • Software Testing Expertise information on questionnaires, the segment, person, and need; Certification exam coordinated exam results, e-learning and more compact; and easier to by the Turkish Testing Board - training organizations via the reach information without time representative of International portal. In 2016, the Akbank and location limitations. The Bank Software Testing Qualifications Academy mobile application was also began revising the content Board (ISTQB) in Turkey launched while the development of its training modules. of various infrastructures – such In addition, every year a certain as gamification, social learning, Other Training Opportunities for number of Akbank employees digital catalog, and advanced Employees are selected as future leaders Corporate TV – continued Akbank supports its employees due to their high performance successfully during the year. in obtaining especially and potential. They get the internationally recognized opportunity to attend the Sabancı Diploma System (Lifelong certifications in their areas of University Executive MBA program Learning) specialization. Fees for such with full scholarship. Since 2001, Some of Akbank’s training is exams are covered by Akbank 95 employees have participated subject to the certification pursuant to certain criteria. The in this program. Five employees system, where employees attend number of employees taking such benefited from this opportunity specified training programs exams in accordance with their during the 2015-2016-2017 and take exams to be certified. specialization in 2016 was 86. academic years. Personnel who participate in such activities as homework, project Some of the exams the Bank In line with their roles and presentation and online simulation supports are as follows: responsibilities, some staff in pursuit of a certification also members attended summits, move forward on their career • Chartered Financial Analyst conferences and seminars both development roadmaps. The (CFA) exam held by the CFA in Turkey and abroad. Some 133 certification system grooms well- Institute: Exam on treasury employees were sent to overseas equipped, competent, innovative, transactions seminars/conferences/training and high performing employees • Certified Internal Auditor while 397 personnel attended in terms of professional and (CIA) exam held by the CIA seminars/conferences/training in managerial skills, striving to build Institute and CMA (Certified Turkey. a corporate culture that creates Management Accountants) held its own leaders. by ICMA: Exams on internal audit
SUSTAINABILITY REPORT 2016 95 Our Distinctive Employees
BANK OF INSTRUCTORS
Retired and Internal Instructor of Departments and Managers actions to be taken and to be Practice at the Akbank headquarters, avoided. Know-how and experience of regional directors and regional retired Akbank employees are sales managers with expertise in Content of these training highly valuable for the Bank. Consumer, Commercial and SME programs is determined in Successful Akbank retirees who Banking to improve competence accordance with the needs possess the skills and interest in technical banking, sales and of the target audience. The in carrying out training are hired management. Through such majority of the anti-corruption as instructors in return for a fee. trainings, managers can coach trainings are for the employees In particular, almost all of the their teams in an effective and working in Akbank branches, Core Banking training classes for target-oriented way. but all employees also attend new recruits are administered by training on the Code of Ethics and retiree instructors. The Bank administers a one-on- Information Security. International one coaching program for branch Sanctions/Combating Proceeds Similarly, active employees who managers who are newly assigned of Crime training was conducted are specialists in their fields and to the position of a hybrid to related Head Office and branch who possess the skill to teach can commercial branch manager personnel in a classroom training become internal instructors. To covering various subjects – format. Call Center agents receive become an instructor, one should including branch analysis, classroom-based Combating comply with certain criteria planning, implementation, Proceeds of Crime training. and successfully complete and staff management – to the Training of the Instructor accelerate adaptation to the new Akbank continuously reviews Program. Internal instructors job. and reevaluates the topics and are paid an hourly fee for their contents of its anti-corruption teaching load in addition to the The Mentoring Program Akbank training programs based on salaries they receive for their carries out for management developments and needs in this regular jobs. trainees is aimed at completing area. In 2014, Combating Proceeds their orientation of new graduate of Crime were shared these with On-the-job Trainings and employees to the organization as all employees. Critical training Coaching System soon as possible and having them such as risky teller transactions, As part of efforts to become embrace the experience, know- document protection, detection a learning organization, on- how and corporate culture within and prevention of fraud, the-job trainings focusing on the Bank. operational risk, and security sharing experiences comes to awareness are administered to the forefront. Newly assigned Employees enlisted in the the appropriate audience by Customer Relationship Managers program are supported by their assignment. Akbank continuously are matched with high- mentors in a wide variety of ways, tracks the level of participation in performing and experienced from personal development to training activities and undertakes Training Envoys to get on-the- career advancement, while the efforts to boost attendance. job trainings structured in areas mentors hone their management such as loan analysis, foreign and leadership skills. Internal Communication and trade, deposits and investment Activities at Akbank products. In addition, on-the- Anti-Corruption Training The Bank carries out intra- job trainings continue to be The banking sector faces company communication administered for Assistants corruption risks due to its size activities and organizes events and newly assigned Operations and the magnitude of monetary through various channels in order Managers. Participation in on- transactions. It has been to facilitate communication the-job trainings is tracked by determined that corruption can between employees at every level, registering them in the training be prevented to a great extent foster team spirit, strengthen system and the training results by control systems and training. employee motivation and are computed. Armed with this awareness, engagement, and share the Akbank organizes internal management’s objectives and There are training programs classroom training sessions strategies. and professional coaching and e-learning applications on practices designed to help Head technical issues as well as on
SUSTAINABILITY REPORT 2016 96 Our Distinctive Employees
Akbank’s intra-company communication initiatives aim to inform employees about the Bank’s goals and strategies and encourage them to operate with a customer-centric approach.
Akbank’s intra-company channels are the corporate portal, Permanent Leadership Messages communication and events are corporate TV, e-mailing, quarterly from the Senior Management via guided by the following goals: performance live meetings, Live Broadcast breakfast meetings with the Live broadcast sessions are • Creating an effective CEO, and directors meetings. organized in order to establish communication synergy and As a result of the changes closer and more regular communicating this synergy implemented at the end of 2012, communication between at the right time and through employees can also be reached the senior management and the right channels; while outside of business hours via employees, either face-to-face encouraging employees to the interactive platforms on the or through other communication use the right communication intranet as well as the corporate tools as well as to reach the channel, TV, which is also available to teams in branches. This common • Making employees feel the customers. Special discount ground keeps the internal synergy brand spirit and turning them campaigns and events organized dynamic and reinforces mutual into agents of the brand, and exclusively for the Akbank communication and increases conveying the corporate culture family are communicated to employee motivation to achieve with the right messages, the employees via e-mail and common targets. Every three • Ensuring the continuity of posted on the intranet and mobile months, Akbank’s CEO shares the supporting organizations application. quarterly performance evaluation and practices geared toward messages live via computer solidifying team spirit. Breakfast with the CEO screens with all employees. Once a month, Akbank employees Before the broadcast, questions Effective Intra-Company from various segments and units of employees are collected and Communication Channels attend a breakfast meeting with the CEO answers these questions Akbank’s intra-company Akbank’s CEO. At the breakfast live in person. communication initiatives are gathering attended by high- aimed at informing employees performing employees of the about the Bank’s goals and year, employees share their strategies and encourage them to opinions and suggestions on operate with a customer-centric the industry with the CEO and approach. The most frequently convey the topics on which they used internal communication need more support.
SUSTAINABILITY REPORT 2016 97 Our Distinctive Employees
BANK OF INSTRUCTORS
Akbank BizBize: The main Intra-Company Social Networks, Mechanisms for Expressing Intra-Company Communication “For Us” and “Congratulations Employee Opinions and Channel Akbanker” Areas Suggestions Akbank employs an internal The intra-company social There are various mechanisms intranet system in order to ensure networks of Akbank Between for employees to express their effective and easy access to Us was restructured as an opinions and suggestions to the information by employees and interactive platform where senior management. In addition to reinforce communication. employees share their opinions, to the New Generation Akbank The improvements put in place ideas and knowledge. It has been Messages from the Senior in 2016 transformed Akbank transformed into a major channel Management via Live Broadcast Intranet into a platform with more that strengthens intra-company practices, employees convey interactive sections. The aim of communications. Similarly, the their expectations, opinions the renewal was to allow internal “Award Winning Akbanker” and and suggestions to the senior and external information transfer; “For Us” platforms were upgraded management through the annual increase operational efficiency to enhance the interaction Employee Satisfaction Survey. in all processes thanks to state- between personnel. of-the-art technologies; create a Employees can also share common platform for information; Content Examples from “For Us”: their suggestions about and to ensure easy access to • Social activities attended by business processes through information and consolidation. employees the Suggestion system on the The Akbank BizBize mobile • Albums from which employees corporate portal. In addition, the application enables employees to can download photos from the Ethics Line is a tool that enables access the latest news about the social events they attended employees to express issues Bank, major applications on the • Volunteering activities which they believe should be intranet, and Akbank Academy • Special offers for Akbank resolved within their departments training modules via their employees from companies in but they cannot share with their personal mobile phones. various industries direct managers; and to provide • Interactive pages of social support and advice to employees clubs in such circumstances when • Bulletin boards on which necessary. employees put various items and property on sale Company Events Reinforcing Employee Engagement Akbank organizes social events in order to improve motivation, reinforce team spirit, and to strengthen internal communications.
SUSTAINABILITY REPORT 2016 98 Our Distinctive Employees
VALUE CREATED Armed with the knowledge of the close relationship between happy BY HIGH EMPLOYEE employees and high corporate ENGAGEMENT performance, Akbank believes in bolstering loyalty through Akbank sees employee awareness of the staff’s feelings, engagement and loyalty as a opinions, and expectations, central element of the Bank’s their priorities related to human sustainability and key to resources and management attaining its long-term goals. policies, and their areas of satisfaction and dissatisfaction. The positive impact of efforts to raise employee engagement and boost motivation on performance and business results is easily observed within the Bank. Closely monitoring the needs and expectations of personnel via its effective internal communication channels, Akbank also conducts an Employee Engagement Survey annually. The survey is performed by an independent research company on a confidential basis. Necessary improvement and development initiatives are carried out based on the survey results. According to the results of the 2016 survey, opportunities for improvement will focus on career opportunities, rewarding and recognition, and infrastructure facilities.
SUSTAINABILITY REPORT 2016 99 Our Operations and the Environment
SUSTAINABILITY REPORT 2016 100 Our Operations and Environment
OUR ENVIRONMENTAL POLICY AND COMMITMENTS
The Bank measures its environmental impact in line with internationally-accepted quantitative methods and implements initiatives in the areas where improvement is needed.
Positioned as a model corporate to reduce the environmental Akbank identified citizen in every respect, Akbank impacts of activities of our energy consumption, identified energy consumption, Bank, greenhouse gas greenhouse gas emissions, • Reducing of customers’ and paper use, and disposal of employees’ carbon emissions emissions, paper technological waste as its priority as a result of the Bank’s use, and disposal environmental topics. technological services Digital of technological Banking products, waste as its priority With the aim of actualizing its • Supporting education and environmental environmental policy, Akbank awareness projects that sustainability topics. has adopted the following will increase environmental commitments: awareness in society and • Taking necessary steps to fully among young persons in comply with environmental laws particular, and regulations, • With international • Contributing to the protection collaborations, supporting of natural resources by using transparency policies that will energy, water and paper help reduce greenhouse gas economically, emissions of our Bank and • Carrying out tasks to reduce corporate stakeholders. the amount of waste produced in business processes as much as possible, and to rationally recycle the wastes in case waste reduction is not possible, • Covering the environmental sustainability issues in the training programs provided for our employees in order
SUSTAINABILITY REPORT 2016 101 Our Operations and Environment
EFFECTIVE NATURAL RESOURCE CONSUMPTION STRATEGY
Energy consumption and its Measurement and Evaluation Compliant with International outcome, greenhouse gases Standards that trigger global climate Energy figures collected and reported at international standards change, are among the major within Akbank are divided into two main groups. The first is the direct environmental aspects deemed consumption of energy obtained from different sources (of energy) in important by our Bank. The our Bank. In this group, the main component is the natural gas used for proof of the importance given heating purposes. Natural gas is used as the main fuel at the Akbank by our Bank to this issue is the Sabancı Center, ABC and in most of the other Akbank centers and support we provided for the branches. Carbon Transparency Project actualized in 2009 by the Sabancı In addition, diesel, butane (LPG), coke (coal) and fuel oil are also used University Corporate Governance in Akbank branches. The second is the electricity purchased by our Forum. Akbank is one of the Bank as indirect energy. first companies in Turkey that has committed to implement Direct and indirect energy consumption figures are as follows: climate change strategies and greenhouse gas emission Fuel Consumption 2014 2015* 2016 reporting in compliance with (Gigajoules/year) international standards. Akbank Sabancı Center 6,337 8,082 7,911 SUSTAINABILITY-ORIENTED ABC and Other Centers* 18,300 22,412 21,884 ENERGY CONSERVATION Region Offices and PRACTICES Branches (All Fuels) 79,132 92,012 83,648 TOTAL 103,769 122,506 113,443 Direct and Indirect Energy
Consumption Indicators * Other centers: Zincirlikuyu and Silivri service buildings. In 2010, a wide scale project was executed to create an energy Electricity 2014 2015 2016 management system and to Consumption calculate fuel consumption (Gigajoules/year) made for electricity and heating purposes in the buildings where Akbank Sabancı 70,704 64,854 57,781 Akbank carries out its activities. Center Under this project, consumption ABC and Other 65,713 63,243 63,889 figures of all buildings including Centers* branches were collected in a Region Offices and 215,329 196,319 173,978 database. Branches (All Fuels)
Akbank Banking Center, a TOTAL 351,746 324,416 295,648 high-tech complex located in * Other centers: Zincirlikuyu and Silivri service buildings. Şekerpınar, commenced operation in 2010; some of the Bank’s buildings previously located in Istanbul moved to the Akbank Banking Center in 2010 and 2011.
SUSTAINABILITY REPORT 2016 102 Our Operations and Environment
Our Bank continues to make system runs with appropriate conference room table, between technological infrastructure configuration according to indoor our Headquarters in Istanbul 4. investments in order to carry on air quality, which launched in Levent and the Akbank Banking providing its modern banking 2010, continued in 2016. This Center in Gebze, was used for services with the latest system was directly deployed in about 5,500 hours in 2016. technology. For this reason, the the new branches. demand for electrical energy is In meetings held via these increasing. In addition to the aforementioned systems, not only visual energy projects, the Bank communication but also mutual Energy Efficiency Initiatives activated an infrastructure document and presentation On one hand, Akbank aims to use in all branch computers that transfer is also possible. energy more economically and to rationalizes energy consumption This allows reductions in fuel engage in practices that enable of idle computers under the consumption and resulting energy efficiency in line with the GreenIT program in 2016. greenhouse gas emissions due target of reducing the amount of to business travels; we also save energy required in its operations. Energy Efficiency Applications work time that otherwise would On the other hand, the Bank in Information Technology be spent in commuting. continues its activities for raising Infrastructure awareness among its employees. Aiming to keep the energy Fuel Savings in Cash Operations consumption increase below The Akbank Cash Operations Energy Conservation the growth rate of device needs Unit, which offers cash and cash Applications for Reducing in the Bank’s data centers, value transfer to nearly 5,600 Operational Cost Akbank opts for lower energy service points across Turkey, Akbank is aware of the fact that consuming products in all new began to benefit from the measurement and monitoring system purchases. To this end, latest advances in geographical are important factors for the the Bank began to decommission positioning technologies. Thanks management of energy used in systems more than five years to efficient route planning, its branches 850. In line with this old and replace them with more our teams traveled 7.8 km and aim, in 2011, Akbank established energy efficient devices. Akbank consumed 0.9 liters of fuel per a new infrastructure necessary initiated a new data center transaction in 2016, down from for remote measurement and project in 2015 and completed 10.2 km and 1 liter of fuel per monitoring of the electrical the design work in 2016. The transaction in 2010. This led to a energy used in its branches. design entails the use of “free 23.5% decline in miles traveled This infrastructure contains a cooling” technology to ensure a and 10% less fuel consumption remote monitoring system that more energy efficient new data compared to the previous year – will minimize the loss of electrical center. The new data center large efficiency gains. energy in the system. The system was also designed to comply launched in approximately 300 with LEED (Leadership in Energy Description 2014 2015 2016 Akbank branches in the first and Environmental Design) Kilometers 7.7 7.9 7.8 phase, started working with full certification. Consumed capacity as of 2014 year-end Per Unit covering the other branches in Fuel Saving with Work need of the system. Enabling Videoconference and more efficient use of electrical Telepresence Fuel 0.9 0.9 0.9 energy, the system will help Videoconference and Consumed reduce carbon emissions and telepresence devices enable Per Unit operational costs. our staff to make meetings with Work their contacts in and outside Moreover, the overhaul of the the country without having to mechanical automation of travel. In our Bank, such systems the heating/ventilating/air- are increasingly being used conditioning (HVAC) system in and installed. For example, the the branches to ensure that the telepresence system, a virtual
SUSTAINABILITY REPORT 2016 103 Our Operations and Environment
CONTRIBUTION TO FIGHT AGAINST CLIMATE CHANGE
Akbank closely monitors the latest advances in technology and international initiatives to minimize greenhouse gas emissions from its operations.
Akbank’s Carbon Footprint Carbon Emissions by Primary Energy Source
The fuel and electricity CO2-equivalent carbon emissions caused by fuels used for heating (purchased from the third purposes in our Bank are given in the table below: parties) used in our activities, cause greenhouse gas emission Carbon Emission Caused by 2014 2015* 2016 that triggers global climate the Use of Primary Energy change. Moreover, the fuel (tons CO2-e/year) used in personnel shuttles and Akbank Sabancı Center 328 564 552 company cars allocated to senior managers, also lead to ABC and Other Centers* 948 1,563 1,527 greenhouse gas emissions. Region Offices and 4,869 6,481 6,003 Branches (All Fuels) Akbank closely monitors the TOTAL 6,145 8,609 8,082 latest advances in technology
and international initiatives in * Other centers: Zincirlikuyu and Silivri service buildings. order to minimize greenhouse gas emissions from its operations. Our Bank continues its activities for raising awareness among its The carbon footprint of our Bank employees with efforts for reducing emissions, and increasing energy is regularly calculated every year efficiency and conservation. to monitor the outcomes of the measures taken. Akbank’s target is to gradually reduce its carbon footprint calculated (based on the sources of the consumed energy) at international standards.
SUSTAINABILITY REPORT 2016 104 Our Operations and Environment
Carbon Emission Caused by Electricity Consumption Paper Saving Applications Applications for reducing the use
CO2-equivalent carbon emission caused by electricity consumption is of paper at our Bank continued given in the table below: in 2016. While the applications that had been implemented for Carbon Emission 2014 2015* 2016 Akbank branches and ATMs Caused by Electricity to use paper more efficiently, Consumption (tons continued, applications such as Credit Card e-statement CO2-e/year) and Contracted Merchant Akbank Sabancı Center 8,598 8,503 7,575 e-statements, which saved ABC and Other Centers* 7,9 91 8,292 8,377 significant amounts of paper, Region Offices, Branches 26,341 25,739 22,809 were widespread through various and ATM/BTMs campaigns. Akbank, the first Turkish deposit bank to publish TOTAL 42,930 42,534 38,761 a Sustainability Report in
* Other Centers: Zincirlikuyu and Silivri service buildings. accordance with GRI standards, defines its sustainability Management of Environmental Impact of Personnel Transportation strategy as: “Ensuring economic Personnel service buses are used for mass transportation of growth and raising the standard employees working at the Sabancı Center and Gebze Akbank Banking of living while protecting the Center, where our Head Office units operate. In addition, senior environment and the quality of life of the society.” Embracing management commutes by private vehicles. CO2-equivalent carbon emissions generated by fuels used in transportation are available in environmental sensibilities, the table below: Akbank designs digital processes and solutions, steers its customers to Akbank Direkt Carbon Emission 2014 2015 2016 channels, and strives to minimize Caused by Personnel paper use in its operations. Transportation (tons Developing new projects to CO -e/year) 2 further reduce its paper use Number of personnel 4,600 4,175 4,555 each year, Akbank achieved using shuttles 29% conservation annually Distance (thousand km) 9,425 9,589 11,288 via 12 different improvements. Documents that were printed Total tons of CO -e 3,777 3,853 4,515 2 in previous years and stored in physical archives are recycled A significant proportion of our employees commute to work by service each year at the end of their legal buses. The resulting 4,515 tons of CO -equivalent carbon emission 2 document retention periods. would increase significantly due to individual commutes. Therefore, by providing employees with service buses, Akbank achieves an important level of savings in carbon emissions.
SUSTAINABILITY REPORT 2016 105 Our Operations and Environment
INNOVATIVE Paper Recycling Practices WATER USE AND In addition to paper conservation, PROJECTS IN Akbank is also engaged in paper CONSERVATION PAPER SAVINGS recycling and continues to reduce Water Use its environmental footprint Water consumption in our Bank 9.5% Savings in Printer Paper steadily. Consumption can be summarized as: water used by the employees, water used in The Laser Printer Management Besides saving paper, we aim cleaning activities and irrigation Application, which Akbank to reduce our environmental used in the maintenance of started to use by 2015, reduced footprint by recycling paper landscapes. Akbank has a limited paper consumption by 9.5% wastes. At Kınalı Archives Center, water consumption compared by adjusting employee printer where all branch and Head to manufacturing companies. settings to double-sided printing. Office archives are kept, 875 Our water use does not have tons of paper were disposed and significant impact on a specific Operation Strategic Roadmap recycled in 2016 after the legal water source. Program preservation period ended. One of the most important aims of Akbank’s Operation Water 2014 2015 2016 Documents that have completed Consumption Strategic Roadmap program is to their legal preservation periods (m3/year) implement a “paperless” business at the Archives Center are sent Akbank 32,879 30,996 28,024 Sabancı model. To this end, the Bank to a contracted paper company Center continued to execute three key for secure disposal every year. ABM and Other 113,739 115,493 76,495 Centers* projects – Paperless Operations, The company applies chemical Paperless Head Office and processes on the slit and baled TOTAL 146,618 146,489 104,519 Paperless Field – in 2016 and paper to make pulp and this pulp * Other Centers: Zincirlikuyu and Silivri made significant progress in is used to reproduce paper. service buildings. each. In 2017, the Bank will continue to work tirelessly to Our branches dispose of their Water Conservation Practices use technology more effectively own archived documents or send Mandatory for All Business Units and conduct its operations more them to the Archives Center With the aim of achieving water efficiently. for disposal. In addition to the savings, depressurizing systems paper sent to be recycled by the and aerators that mix water Digital Constitution and the Goal Archives Center, in branches, with air are used in the taps of “Paperless” some precious papers are slit in our branches, the Akbank The “Digital Constitution,” and regular paper is used in both Head Office (HO) and the scheduled for launch by Akbank sides when possible. Then, these Akbank Banking Center (ABC). in 2016, defines the goal of are collected in recycling boxes In addition, in the HO and ABC, “paperless” as follows: The provided by municipalities and photocell taps are used in WCs Bank uses paper internally and non-governmental organizations where water is used in great externally only to the extent that such as TEMA (Turkish amounts, in order to achieve regulations require it. All other Foundation for Combating water savings. notifications, presentations, Erosion Reforestation and the reports, documents, statements, Protection of Natural Habitats) to posts, and storage are handled be recycled later on. digitally.
SUSTAINABILITY REPORT 2016 106 Our Operations and Environment
Recycling-Oriented Waste Recycling Toner Cartridges Electronic devices that are Management Policy Empty toner cartridges of no longer appropriate for use Akbank uses a great number printers have negative impacts according to Akbank’s standards and variety of electric and on the environment if they are not are sold to companies in Turkey, electronic devices due to the disposed of properly. To minimize as scrap or second-hand nature of banking operations, this impact, empty cartridges products for recovery of the which require electronic means in all of Akbank buildings, metals and electronic parts. In in a number of transactions. including branches have been addition, some of these devices These devices contain not only sent to an electronic waste are donated as per the requests valuable metals that should be recovery company for recycling. made to the Bank. brought back to the economy, Employees who order new but also environmentally harmful cartridges see a warning on their Technological Wastes are materials. Therefore, we have computer screens to send the Recycled Back Gained to the several measures to ensure empty cartridges to a recovery Economy recovery of devices that have company. This recovery company Electronic devices that are gone out of use within the uses the recycled cartridges as no longer appropriate for use economy or to reduce potential fuel for energy generation. according to Akbank’s standards environmental impact. are sold to companies in Turkey, Some 800 empty toner cartridges as scrap or second-hand In our main buildings, we sort collected at the Head Office and products for recovery of the and collect wastes to deliver Akbank Banking Center were sent metals and electronic parts. In them to recycling companies. For to the recycling company in 2016. addition, some of these devices instance, used paper, plastics, are donated as per the requests glass and metals are collected made to the Bank. in separate boxes and sent to recycling. In addition, oil 2014 2015 2016 retainers are placed between Salvage Disposal Salvage Disposal Salvage Disposal the wastewater line and the city Auctions Auctions Auctions sewer lines in the kitchens to Computer 2,003 66 8,958 49 45 253 collect waste oils. These waste Screen 1,991 66 2,201 42 155 253 oils are sent to oil recovery stations to be recycled. Passbook 381 496 281 - - - Printer
When floor coverings in buildings Dot Matrix 87 127 288 - - - Printer need to be replaced, we take the environmental performance of Laser 177 2 359 1 469 4 Printer carpets and other floor coverings into consideration. POS Device 39,750 - 74,133 - 16,303 - ATM Device 123 430 337 - - -
SUSTAINABILITY REPORT 2016 107 Our Community Investment
SUSTAINABILITY REPORT 2016 108 Our Community Investment
CULTURE AND ART
Akbank Art Center’s Modern Art Gallery, which hosts domestic and international exhibitions, features the works of world- renowned Turkish and foreign artists.
Akbank Sanat Center is one of the focal points Akbank Children’s Theatre Celebrating its 23rd anniversary of modern art in Turkey. Akbank Akbank Children’s Theatre, in 2016, Akbank Art Center was Art Center successfully executes Turkey’s longest-running established in 1993 to brand the its mission by providing the children’s theatre company, innovative and visionary identity opportunity for young artists celebrated its 44th anniversary Akbank pursues in arts. to hold exhibitions through the in 2016. Having played a major Akbank Contemporary Artists role in raising a theatre-loving Playing a leading role in Award initiative. In 2016, the generation, Akbank Children’s developing contemporary arts in Center hosted such exhibitions as Theatre reached more than 2 Turkey and bringing artworks to “Monochrome,” “Akbank Today’s million children during these vast numbers of the population Artists Award,” “Coincidence years, participated in countless across all social strata, Akbank in Art, Art of Coincidence” and social responsibility projects, Art Center ranks among the “Non-Places.” and opened new horizons for pioneering contemporary arts thousands of children across institutions in the country. The Akbank Art Center organizes Anatolia. Greeting audiences Center organized over 700 events mini festivals such as “Piano with many different plays over throughout 2016 in various Days,” “Guitar Days,” “World the years, Akbank Children’s branches of the arts – including Music Days” and “Jazz Days”; in Theatre presented the play exhibitions, concerts, theatrical addition, it hosts modern dance entitled “Around the World in plays and dance performances performances that feature 80 Days,” adopted from a novel – sending ripples across the internationally-renowned dance by Jules Verne with the same national and international arts masters as part of the Dance title, in the new season. Akbank communities. Studio. Akbank Art Center also Children’s Theatre’s new play will hold events in many provinces take children on one of the most In joint exhibitions that brought of Turkey led by Akbank Jazz famous journeys ever in world together widely renowned names Festival and including Akbank literature. of the domestic and international Children’s Theatre and Akbank art worlds, Akbank Art Center Short Film Festival. presented select examples of contemporary works to arts enthusiasts. Hosting at least four exhibitions each year, the
SUSTAINABILITY REPORT 2016 109 Our Community Investment
CULTURE AND ART
Akbank Jazz Festival Akbank Short Film Festival Map of Contemporary Art One of Turkey’s longest-running Akbank Short Film Festival, As another activity of Akbank festivals and one of the most launched in 2004 as a prominent Art Center, the Akbank Map of important demonstrations of platform for short films in Turkey Contemporary Art continues to Akbank’s commitment to creating that strives to support new reach Turkish and foreign art- lasting values and ensuring the ideas and contributes to short enthusiasts in print form and sustainability of these values, film culture, presented many on the Internet with the aim Akbank Jazz Festival celebrated renowned directors to cinema of reflecting the artistic life in its 26th anniversary in 2016. enthusiasts during these years. Istanbul in the best way possible Thanks to the high-quality Films that made their way into in 2016. The Map was printed five lineup of artists and groups it the Festival’s program and won times in 2016 with a total volume features, the Festival has become prizes were also commended of 100,000 and reached more a widely anticipated event not and recognized with awards people especially during fair and just in Turkey, but also on the on the international stage, biennial periods. international stage. demonstrating once again that the Festival is on the right track. Contemporary Istanbul The 26th Akbank Jazz festival, The most encompassing held October 12 – 23, 2016, Having carved a special modern and contemporary presented nearly 300 artists to place for itself in the Turkish art event ever organized in music lovers in 50 concerts. Jazz movie industry and become Turkey, Contemporary Istanbul on Campus, which is a “Festival indispensable for young film showcases Turkey’s cultural within Festival,” took place producers in particular, the and artistic life to the world. at universities in cities from Festival appeals to all movie Sponsoring Contemporary October 24 to November 4. To lovers with its workshops and Istanbul since 2007, Akbank commemorate the Festival’s 26th panels in addition to the film supports Turkey’s most important anniversary, a special blog was screenings. The Festival, which contemporary art fair. In addition prepared with various content celebrated its 12th anniversary to the fair event, Contemporary and interviews. The blog featured March 7-17, 2016, is preparing Istanbul also features many content on artists taking the to present an enjoyable 10-day complementary activities and art stage at the Festival this year; program to cinema lovers with projects, from panel discussions unknown heroes in the history of workshops and talks participated to exhibitions. jazz; intersections of jazz music widely by attendees from Turkey with other disciplines such as and abroad. Seventy galleries and 520 artists film; and cities and sites across from 20 countries took part in the world that are identified with “Youth” Oriented Culture & Art Contemporary Istanbul this year jazz. In addition, as part of the Events with more than 1,500 works. Festival, Akbank Art Center’s Akbank Art Center organized As part of its new section, CI Instagram account hosted the the Jazz in High Schools and Design, the event hosted 32 colorful, polyphonic exhibition Children’s Workshops, Jazz designers as well as 18 new media where 20 artists portrayed the on Campus activities as part artists in the Plug-in section. “city and jazz” relationship. of the Akbank Jazz Festival Contemporary Istanbul broke new in 2016. Akbank Short Film ground in 2016 and presented In addition to the distinguished Festival’s award-winning films 120 works from Turkey’s 60 works from American and were screened on 40 university contemporary art collections to European jazz, the Festival’s campuses in 21 provinces across arts enthusiasts as part of the program featured a wide the country. Collectors’ Stories section. variety of audio experiences for audiences, from classic jazz and avant-garde tones to world music and the limits of electronic. Panels, talks, and workshops complemented concerts for a content rich, multi-faceted program experience.
SUSTAINABILITY REPORT 2016 110 Our Community Investment
EDUCATION participation certificates from Akbank Thinking Club Sabancı University. In addition, Akbank established the “Akbank Cooperation with Sabancı representatives from financial Thinking Club” in September 2008 University: Center of Excellence institutions and the real sector as in order to think alongside young in Finance (CEF) well as academics came together people, the natural stakeholders Established to serve as a bridge in the panel discussion entitled of continuous development between academia, the finance “A Review of the Economy in and innovation, and to create industry, policy makers, and 2016 and a Detailed Outlook value for Turkey’s future with the real sector, the Center of for 2017.” The panel was held in them. Open to applications from Excellence in Finance (CEF) is a December with the participation university juniors from across center within Sabancı University, of chief economists of financial Turkey, the Club is growing its an AACSB-accredited institution institutions as panelists. membership base with each that is ranked by Times Higher passing year. Education (THE) among the top Akbank “Junior Savers” Project universities in the world less than Akbank actively supports New students joined the Club, 50 years old. initiatives to improve financial working in teams on the themes literacy and encourage savings. assigned to them each year CEF operates with the aim of As part of this effort, Akbank to generate creative ideas, bringing academics, finance launched Akbank Junior Savers scenarios and projects. These industry professionals, Project in 2012. Aimed to reach projects are assessed by a and investors together and out to children at the age they special jury comprised of transforming core knowledge into begin forming lasting habits, academics, specialists and applications that have real utility the campaign featured special members of the press; the in today’s world. project materials, including a team that generates the most website prepared exclusively admired work wins a scholarship CEF’s first conference in 2016 for this initiative, a board game for Harvard University Summer brought together real sector and played with children as part of School. Akbank Thinking Club finance industry representatives, classroom learning activities, a members continued to develop policymakers, academics, and savings poster, and certificates projects on “Year 2025: Design students. Leading names in global of completion. the Bank of Future” during the finance – such as Professor 2015-2016 activity year. Turan Bali, Dr. Josef Ackermann, In 2016, Akbank retooled the Suzan Sabancı Dinçer, Lord project’s content and the Akbank Thinking Club provides Stephen Green, Professor Dante training materials in line with young people, the innovative Roscini, Dr. Til Schuermann, the project goals. As a result, a power of tomorrow and owners Professor Cliff Holderness, Sir board game about various uses of Turkey’s future, with an Winfried Bischoff and Professor for children’s allowances and opportunity to gain experience Larry Summers – attended the savings habits was developed; today in order to expand and conference entitled “Developed in addition, Akbank’s Ladybug realize their potential down the and Emerging Economies: The Bank was redesigned and rolled road. Future of Financial Markets.” out to students under the name “Kumbirik.” Sabancı University As part of the certification Sabancı University was founded programs organized by CEF in Akbank Children’s Theatre with the mission of developing 2016, 200 persons, consisting delivered key messages to internationally competent and of high school and university elementary school students on confident individuals enriched students as well as young savings and family values with with the ability to reflect professionals, attended the play titled “Family Tree,” critically and independently, CEF Training Programs; written by Rachel Barnett in combined with a strong sense at the conclusion of each its 2015-2016 academic year of social responsibility; and program, attendees received program. In addition, the play contributing to the development is performed in Anatolia at the Gaziantep Children’s Festival.
SUSTAINABILITY REPORT 2016 111 Our Community Investment
of science and technology ENTREPRENEURSHIP made available to around 150 on a global level, as well as young aspiring business owners disseminating the knowledge In 2016 Akbank continued to each year and promise to create created to the benefit of the support the efforts to spread a radical change in Turkey’s community. Akbank’s total direct the spirit of entrepreneurship in entrepreneurship ecosystem. cash donations to Sabancı Turkey, train a greater number University since its establishment of entrepreneurs, and increase Under the CaseCampus reached USD 73 million. Dividend opportunities for them. Examples Case Studies Program, income earned by Sabancı of such efforts are provided the processes, challenges, University since 2005 from the below. successes and struggles Akbank shares donated to the experienced by entrepreneurs University at the time of its Collaboration with Endeavor who have registered major establishment amounts to USD For 10 years, Akbank has jointly accomplishments in the Turkish 7.8 million as of 2016. developed various financial entrepreneurship ecosystem are and non-financial projects with shared with young candidates. Akbank Academy of Family Endeavor, an international non- Businesses governmental organization All stories of entrepreneurs are Akbank Academy of Family established to contribute to presented on an online platform Businesses is a series of training economic development by through published case studies program activities that was supporting active entrepreneurs and video presentations in a way initially unveiled by the Bank in emerging markets. The Bank that encourages learning-by- in 2014 for its SME Banking also provides financial support for doing via live forum discussions customers in partnership with entrepreneurs by offering a credit as well as conferences that are Sabancı University-EDU. pool for active entrepreneurs held in Istanbul. More than 2,500 selected by Endeavor Turkey. applications were received for Akbank Academy of Family the CaseCampus Programs that Businesses In 2016, the 10th year of Akbank’s were organized in 2016; 247 of The Akbank Academy of collaboration with Endeavor, these candidates graduated from Family Businesses is an the Bank further expanded the Program. Some 64% of the academic program comprised its entrepreneurship-related graduates are men and 36% are of three three-day modules. initiatives with new projects. women. As part of the Endeavor The Akbank Academy of Family expansion initiative in 2016, the Businesses aims to instill a CaseCampus Program CaseCampus Program organized professional perspective in Adding to its long list of its fall term in Izmir. Forty-six its participants; support their entrepreneurship initiatives, percent of Program participants efforts to institutionalize; equip Akbank took a major step forward were from Istanbul, while the participants with applications with the CaseCampus project in remaining 54% attended from that will help them reflect 2016. Adopting the slogan “Follow a wide variety of provinces in on themselves and their in the Footsteps of Entrepreneurs Turkey – including Adana, Ankara, organizations; and assist them to Your Dreams,” CaseCampus Bursa, Eskişehir, Izmir, Kayseri, in understanding their personal was administered in two distinct and Trabzon. and institutional developmental periods in 2016, spring and needs. fall. The project provides an During the course of the Program, innovative education and training 10 cases were analyzed, 4,960 Twenty-seven participants opportunity for participants by case videos were shown, 100 attended the Academy and presenting the true stories of online forums were conducted, received their certifications and dilemmas facing Turkey’s and 9,733 ecosystem networking during the February-April and leading exemplary entrepreneurs, connections were established. September-November terms in in light of the principle “No One-hundred seventy internship 2016. training can be as instructive positions were made available as a case study.” The training to the graduates of the Program modules of the program will be while 24 persons were provided with mentorship support post- graduation.
SUSTAINABILITY REPORT 2016 112 Our Community Investment
Akbank Entrepreneur effort is to reach out to active Volunteers of Akbank has Development Program entrepreneurs in these cities, executed a large number of support them, create role models projects to date. Some of these Akbank Entrepreneur out of them, and contribute to projects include donation Development Program is the development of city and campaigns after local disasters; one of the projects carried region-based entrepreneurship painting school buildings; out by the Bank in order to ecosystems. reading to the visually impaired; support entrepreneurs. Akbank visits and donations to animal Entrepreneur Development VOLUNTEERISM shelters; book and toy collection Program, a training initiative campaigns; donation campaigns launched in cooperation Akbank Volunteers for families and schools in with Sabancı University Akbank Volunteers is a platform financial need; visits and Entrepreneurship Committee where Akbank employees donations to nursing homes; (SUGK) and Akbank to guide and across the country – along with blood donation campaigns in support entrepreneurs who are their families as well as Bank partnership with the Turkish Red just starting out, received more customers and business partners Crescent Association (Kızılay); than 500 applications in 2016. – undertake initiatives for the sponsoring runners in the Eurasia As part of the training effort social good as part of various Marathon to benefit civil society th that was organized for the 13 volunteering projects. The leading organizations; stand sales at time this year, entrepreneurs actors of the volunteering system the Sabancı Center and Akbank engaged in various industries are the Volunteers of Akbank in Banking Center for the benefit of across Turkey graduated from every corner of Turkey. civil society organizations. the Program and received their certificates. Under the leadership of Volunteers Young Volunteers of Akbank, the Bank joins forces The Bank expanded the During the five-day training, with the local community, non- volunteering projects it has which can be characterized as a governmental organizations and undertaken for years through mini MBA program, 50 SMEs that local governments in various Akbankers with the “Young were admitted to the Program regions, develops projects to Volunteers” initiative in 2016 received knowledge transfer in a address social problems, and with the participation of wide spectrum of topics. These focuses on being part of the university students. Under subjects ranged from managing solution. Volunteers from the this effort, the Bank invited all finances during an organization’s Bank execute different projects university students to take part growth phase and drafting each year as part of volunteering in its nationwide public benefit marketing and operations plans initiatives that serve multi- initiatives. Subsequently, the according to different business purposes, such as creating social volunteers attended the Imany th models, to raising capital and sensibility and awareness. Akbank Concert at the 26 Akbank Jazz equity for financing needs Volunteers always feel the power Festival, seated in the front and growing in domestic and of Akbank – which has conducted rows in a section designated overseas markets. In addition, corporate social responsibility exclusively for them. Program participants attended projects in numerous areas, from office visits where they met education to culture and art The Young Volunteers Project with executives from well-known since the day it was founded – on was met with heavy interest by ventures, such as iyzico.com, and their side. Volunteers of Akbank university students again this famous entrepreneurs in various see volunteerism as a powerful year. The quota of 500 students industries. tool to solve the challenges of was reached within two days everyday life, and Akbank as part of the announcement of the Smartstartup Cities Program of the solution. In response to the application for the project on In 2016, Akbank launched the positive feedback from the local social media. “Smartstartup Cities” Program organizations they have joined in Ankara and Izmir to extend forces with in all the projects they The project – which was the entrepreneurship initiatives have undertaken, Volunteers of carried out in partnership with that it has undertaken in Akbank are planning to undertake the Community Volunteers Istanbul jointly with Endeavor more volunteering projects in the Foundation of Turkey, the to other cities. The goal of this year ahead. Friends of the Yedikule Animal
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Shelter Association, and the Charitable Donations Associations and Foundations DenizTemiz/TURMEPA (Turkish Akbank customers can donate that Received Donations from Marine Environment Protection money from their demand deposit Akbank Customers in 2016 Association) last year – was accounts and credit cards to Lösemili Çocuklar Vakfı (LÖSEV), expanded in 2016 to include the a variety of associations and Bir Dilek Tut, Darüşşafaka Hayat Sende Youth Academy foundations that operate in Cemiyeti, TSK Güçlendirme Association. As a result, Turkey on behalf of the public Vakfı, Türk Hava Kurumu, Türkiye the number of civil society interest. Donors who are not Kanserle Savaş Vakfı, Türkiye organizations Akbank partners Akbank customers can make cash Kızılay Derneği, TSK Mehmetçik with rose to four. As part of the donations at Akbank branches. Vakfı, Darülaceze Müessesesi, Young Volunteers Project, young Customers can donate funds for Tohum Otizm Vakfı, Türkiye people became acquainted with one-time only or with automatic Spastik Çocuklar Vakfı, Türkiye these civil society organizations payment orders to an association Kadın Girişimciler Derneği that operate in diverse areas, or foundation of their choice. (KAGİDER), Özürlüler Vakfı, gaining in-depth understanding Çocuk Böbrek Vakfı, Türkiye of the activities of these CSOs In 2016, customers’ donations Omurilik Felçlileri Derneği, and taking their first steps in amounting to TL 13.5 million were Türkiye Korunmaya Muhtaç volunteering. transferred to the associations Çocuklar Vakfı, Türkiye Multipl and foundations listed below. Skleroz Derneği, Türkiye Eğitim As part of the joint initiative of Akbank does not charge any fees Gönüllüleri Vakfı, Türkiye Diyanet Akbank and various civil society for these donation payments. Vakfı, Zihinsel Yetersiz Çocukları organizations, 5,400 volunteering Yetiştirme ve Koruma Vakfı, university students cleaned our UNICEF Türkiye, Türk Eğitim shores, painted schools, helped Vakfı, TSK Eğitim Vakfı, Sabancı homeless pets, and organized Üniversitesi, HAYTAP Hayvan events for orphans under the Hakları Federasyonu protection of the state. Thirty social responsibility projects for public benefit were executed in Istanbul and 25 other provinces under this initiative.
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GRI G4 (COMPREHENSIVE) CONTENT INDEX
This report contains information on the actions Akbank took to improve its social, environmental and economic performance and the results it achieved during the period between January 1, 2016 and December 31, 2016. The contents of the report are developed in compliance with the Comprehensive option of the G4 version of the GRI (Global Reporting Initiative) Sustainability Reporting Guidelines, which is an internationally recognized reporting standard. The table below has been prepared to facilitate access to information provided within the framework of GRI’s Comprehensive level application.
Material Aspects and Boundaries
G4-19 G4-20 G4-21
Material Aspect Material to Related Topic in Boundary inside Boundary outside Akbank Prioritizing Analysis Akbank Akbank Economic High Priority Sustainable This aspect This aspect defines Performance Profitability and defines high high priority for the Growth (see. Akbank priority for the whole stakeholders of 2016 Sustainability whole business Akbank. The economic Report Prioritizing units of Akbank. performance of Akbank of Aspects Study, have direct impact page:29) on public authorities, shareholders, employees and suppliers. Market Presence High Priority Sustainable This aspect This aspect defines Profitability and defines high high priority for the Growth (see. Akbank priority for the whole stakeholders of 2016 Sustainability whole business Akbank. Market position Report Prioritizing units of Akbank. and value-added by of Aspects Study, Bank correspond to high page:29) priority for all Akbank stakeholders. Indirect High Priority Sustainable This aspect This aspect represents Economic Profitability and defines high high priority for the Impacts Growth (see. Akbank priority for the development of local 2016 Sustainability whole business enterprises and local Report Prioritizing units of Akbank. communities. of Aspects Study, page:29)
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G4-19 G4-20 G4-21
Material Aspect Material to Related Topic in Boundary inside Boundary outside Akbank Prioritizing Analysis Akbank Akbank Procurement Low Priority Sustainability This aspect Although this Practices in Supply Chain defines low aspect defines low (see. Akbank 2016 priority for all priority for Akbank, Sustainability business units of Akbank monitors the Report Prioritizing Akbank. environmental and social of Aspects Study, risks of its suppliers’ page:29) activities. Energy High Priority Carbon Emissions Akbank gives This aspect represents (see. Akbank 2016 high priority to high priority for Sustainability energy efficiency the whole Akbank Report Prioritizing in terms of stakeholders in terms of Aspects Study, environmental of environmental page:29) sustainability. sustainability. Emissions High Priority Carbon Emissions Akbank give Minimizing carbon (see. Akbank 2016 high priority emissions corresponds Sustainability to minimise to high priority for all Report Prioritizing emissions, stakeholders of Akbank. of Aspects Study, concerned with page:29) its activities. Products and High Priority Customer Akbank gives This aspect corresponds Services Satisfaction (see. high priority to high priority Akbank 2016 to product and especially for customers. Sustainability services in terms Report Prioritizing of customer of Aspects Study, satisfaction. page:29) Environmental High Priority Customer Akbank gives This aspect represents Compliance Satisfaction (see. high priority high priority for the Akbank 2016 to diminish Its corporate customers Sustainability environmental that are benefited from Report Prioritizing impact. Akbank credits. of Aspects Study, page:29) Transpor t Low Priority Sustainability Akbank’s Akbank monitors the in Supply Chain transportation activities of suppliers (see. Akbank 2016 activities in order to diminish the Sustainability are mostly impacts on this field. Report Prioritizing substituted by of Aspects Study, suppliers. So, page:29) Akbank gives low priority to this aspect.
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G4-19 G4-20 G4-21
Material Aspect Material to Related Topic in Boundary inside Boundary outside Akbank Prioritizing Analysis Akbank Akbank Overall High Priority, Environmental This aspect This aspect corresponds Medium and Social Risk defines high to medium priority for Priority Management priority for the the customers that in Lending (see. whole business borrow high quantity Akbank 2016 units of Akbank. of credit from Akbank Sustainability and have social and Report Prioritizing environmental risk- of Aspects Study, based activities. page:29) Supplier Low Priority Sustainability This aspect Akbank regulates Environmental in Supply Chain defines limited permanent monitoring Assessment (see. Akbank 2016 effect on the activities for the Sustainability activities of suppliers that exercise in Report Prioritizing Akbank. the riskful areas. of Aspects Study, page:29) Employment High Priority, Employee and Akbank Akbank, outstanding Medium Human Rights perceives the bank of Turkish banking Priority (see. Akbank 2016 employment system, actively Sustainability as one of the supports employment. Report Prioritizing most significant In terms of Akbank of Aspects Study, priorities. stakeholders, this aspect page:29) defines medium priority. Labour/ High Priority, Employee and Akbank gives This aspect corresponds Management Medium Human Rights high priority to to medium priority Relations Priority (see. Akbank 2016 the social rights for the whole Akbank Sustainability of its employees. stakeholders. Report Prioritizing of Aspects Study, page:29) Occupational High Priority, Employee and Akbank gives This aspect corresponds Health and Medium Human Rights high priority to to medium priority Safety Priority (see. Akbank 2016 occupational for the whole Akbank Sustainability health and stakeholders. Report Prioritizing safety of Aspects Study, conditions of page:29) empoyees. Training and Medium Career Development Akbank gives This aspect corresponds ,Education Priority and Training (see. medium priority to medium priority Akbank 2016 to the career for the Akbank Sustainability development of stakeholders. Report Prioritizing its employees. of Aspects Study, page:29) Diversity Medium Equal Opportunity Akbank This aspect corresponds and Equal Priority (see. Akbank 2016 introduces a to medium priority for Opportunity Sustainability range of rights in the whole stakeholders Report Prioritizing the light of the of Akbank. of Aspects Study, principle of equal page:29) opportunity.
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G4-19 G4-20 G4-21
Material Aspect Material to Related Topic in Boundary inside Boundary outside Akbank Prioritizing Analysis Akbank Akbank Equal Medium Equal Opportunity Equal Akbank actively Remuneration for Priority (see. Akbank 2016 Remuneration for supports the woman Women and Men Sustainability Women and Men employment in the Report Prioritizing is indispensable Turkish labour market. of Aspects Study, part of Akbank page:29) culture. Labour Practices High Priority, Employee Akbank gives This aspect corresponds Grievance Medium Satisfaction (see. high priority to medium priority Mechanisms Priority Akbank 2016 to employee for the Akbank Sustainability satisfaction stakeholders. Report Prioritizing to increase of Aspects Study, efficiency. page:29) Investment High Priority Secure Banking Akbank supports Akbank’s investment (see. Akbank 2016 the service program corresponds Sustainability quality and to high priority in terms Report Prioritizing securing banking of service quality of of Aspects Study, practices stakeholders. page:29) through investments. Non- Medium Equal Opportunity, Akbank puts This aspect corresponds discrimination Priority (see. Akbank 2016 a set of rules to medium priority for Sustainability to prevent the the stakeholders of Report Prioritizing discrimination Akbank. of Aspects Study, cases. page:29) Freedom of High Piority, Employee and Akbank respects This aspect corresponds Association Medium Human Rights the employees’ to medium priority for and Collective Priority (see. Akbank 2016 freedom of Akbank’s stakeholders. Bargaining Sustainability association Report Prioritizing and collective of Aspects Study, bargaining. page:29) Security High Priority Secure Banking Akbank gives This aspect corresponds Practices (see. Akbank 2016 high priority to high priority for the Sustainability to security whole stakeholders of Report Prioritizing practices Akbank. of Aspects Study, to maintain page:29) efficiency of its activities.
SUSTAINABILITY REPORT 2016 118 Global Reporting Initiative (GRI) Index
G4-19 G4-20 G4-21
Material Aspect Material to Related Topic in Boundary inside Boundary outside Akbank Prioritizing Analysis Akbank Akbank HR Assessment Medium Career Development Akbank This aspect corresponds Priority and Education introduces a to medium priority for (see. Akbank 2016 set of training Akbank stakeholders. Sustainability program for Report Prioritizing the career of Aspects Study, development of page:29) its employees. Human Rights High Priority, Employee and Akbank gives This aspect corresponds Grievance Medium Human Rights high priority to to medium priority for Mechanisms Priority (see. Akbank 2016 human rights Akbank stakeholders. Sustainability grievance Report Prioritizing mechanisms of Aspects Study, to increase page:29) employee loyalty. Local Medium Innovative Products Akbank develops This aspect corresponds Communities Priority and Services innovative to medium priority for Facilitating Access product and Akbank stakeholders. to Financial Services services to (see. Akbank 2016 faciliate the Sustainability access of local Report Prioritizing communities of Aspects Study, to financial page:29) services. Anti-corruption High Priority Corporate Depending on Anti-corruption Governance (see. professional measures corresponds to Akbank 2016 corporate high priorrity for Akbank Sustainability governance stakeholders. Report Prioritizing understanding, of Aspects Study, Akbank actively page:29) struggle with corruption. Public Policy High Priority Corporate Contribution to The development of Governance (see. the public policy public policy, especially Akbank 2016 is high priority for in the field of finance Sustainability Akbank. sector, corresponds Report Prioritizing to high priority for of Aspects Study, the whole Akbank page:29) stakeholders.
SUSTAINABILITY REPORT 2016 119 Global Reporting Initiative (GRI) Index
G4-19 G4-20 G4-21
Material Aspect Material to Related Topic in Boundary inside Boundary outside Akbank Prioritizing Analysis Akbank Akbank Anti-competitive High Priority, Ethical Banking In the light of This aspect corresponds Behavior Medium (see. Akbank 2016 principle of to medium priority Priority Sustainability ethical banking, for the Akbank Report Prioritizing Akbank doesn’t stakeholders. of Aspects Study, perform anti- page:29) competitive behavior. Product and Medium Environmentally- Akbank gives This aspect corresponds Service Labeling Priority, Low friendly products medium priority to low priority for the Priority and services (see. to the product stakeholders of Akbank. Akbank 2016 and service Sustainability labelling. Report Prioritizing of Aspects Study, page:29) Marketing High Priority Customer Akbank targets This aspect corresponds Communications Satisfaction (see. at increasing to high priority for the Akbank 2016 customer whole stakeholders of Sustainability satisfaction Akbank. Report Prioritizing through of Aspects Study, transparent page:29) marketing communication practices. Customer High Priority Secure Banking Akbank gives The Customer privacy Privacy (see. Akbank 2016 high priority corresponds to high Sustainability to customer priority for customers Report Prioritizing privacy through and other stakeholder of Aspects Study, secure banking group. page:29) practices. Compliance High and Effective Risk Akbank always This aspect corresponds medium Management and compliance to medium priority for priority Internal Control, with law and Akbank stakeholders. (see. Akbank 2016 regulations Sustainability through Report Prioritizing efficient risk of Aspects Study, management and page:29) internal control mechanisms.
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General Description Pages Omissions External Standard Disclosures Strategy and Analysis G4-1 Statement from Message from the No the most senior Chairwoman, Message decision-maker of from the CEO, pages: 2-7 the organization about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability G4-2 Description of key Message from the CEO, No impacts, risks and pages: 4-7, Sustainability opportunities Focused Risk Perception, pages: 47-48 G4-3 Name of the Akbank T.A.Ş. No organization G4-4 Primary brands, About Akbank, pages: No products, and/or 12-22 services G4-5 Location of Headquarters Sabancı No organization’s Center, 4. Levent 34330 headquarters Istanbul Telefon: (+90 212) 385 55 55 Telefax 1: (+90 212) 269 77 87 Telefax 2: (0 212) 269 73 83
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General Description Pages Omissions External Standard Assurance Disclosures Organisational Profile G4-6 Number of countries About Akbank, pages: No where the organization 12-22 operates. G4-7 Nature of ownership About Akbank, pages: No and legal form 12-22 G4-8 Markets served About Akbank, pages: No 12-22
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General Description Pages Omissions External Standard Assurance Disclosures Organisational Profile G4-9 Scale of the reporting About Akbank, pages: No organization 12-22 G4-10 Number of employees Human Resources No by employment Profiles pages: 87-89 contract, region and gender G4-11 Percentage of total Collective Bargaining No employees covered by Contract, page: 91 collective bargaining agreements G4-12 Organization’s supply Sustainability Approach No chain Encompassing All Links of the Value Chain, page: 31
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General Description Pages Omissions External Standard Assurance Disclosures Organisational Profile G4-13 Significant changes About Akbank, pages: No during the reporting 12-22 period regarding size, structure, form of ownership and supply chain. G4-14 Explanation of Akbank accepts the No whether and how the precautionary principle precautionary principle of UN Global Compact is addressed by the for all activities. organization
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General Description Pages Omissions External Standard Assurance Disclosures Organisational Profile G415 Externally developed Memberships in No economic, Associations and Unions, environmental and Signed Initiatives social charters, pages: 34-36 principles, or other initiatives, to which the organization subscribes or which it endorses. G4-16 Memberships of Memberships in associations (such as Associations and Unions, industry associations) Signed Initiatives and national or pages: 34-36 international advocacy organizations
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General Description Page Omissions External Standard Assurance Disclosures Identified Material Aspects and Boundaries G4-17 a) List all entities Report Scope and No included in the Boundary, page: 23 organization’s consolidated financial statements or equivalent documents. b) Entities included in the organization’s consolidated financial statements or equivalent documents are not covered by the report. G4-18 a) Process for defining Akbank 2016 No the report content and Sustainability Report, Aspect Boundaries. b) Prioritizing of Topics How the organization Study, page; 29 has implemented the Reporting Principles for Defining Report Content
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General Description Pages Omissions External Standard Assurance Disclosures Identified Material Aspects and Boundaries G4-19 (a) List of all the Akbank 2016 No material Aspects Sustainability Report, identified in the Prioritizing of Topics process for defining Study, page: 29 report content G4-20 a) Materiality of Akbank 2016 No Aspects outside the Sustainability Report, organization Prioritizing of Topics Study, page: 29 G4-21 a) Materiality of Akbank 2016 No Aspects within the Sustainability Report, organization. Prioritizing of Topics Study, page: 29 G4-22 a) The effect of any About Report, pages: No restatements of 22-26 information provided in previous reports, and the reasons for such restatement G4-23 a) Significant changes Akbank 2016 No in the Scope and Sustainability Report, Aspect Boundaries. Prioritizing of Topics Study, page: 29
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General Description Pages Omissions External Standard Assurance Disclosures Stakeholder Engagement G4-24 a) List of stakeholder Dialogue Platforms, No groups engaged by the pages: 34-36 organization. G4-25 a) Basis for Dialogue Platforms, No identification pages: 34-36 and selection of stakeholders with whom to engage. G4-26 a) Organization’s Dialogue Platforms, No approach to pages: 34-36 stakeholder engagement. G4-27 a) Key topics and Dialogue Platforms, No concerns that pages: 34-36 have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.
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General Description Pages Omissions External Standard Assurance Disclosures Report Profile G4-28 Reporting period 1 January 2016 - 31 No December 2016 G4-29 Date of the most 1 January 2016 - 31 No recent previous report December 2015 G4-30 Reporting cycle Annually No G4-31 Contact point for Identity, page: 116 No questions. G4-32 GRI Content Index and Comprehensive, About No ‘in accordance’ option Report, pages: 22-26
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General Description Pages Omissions External Standard Assurance Disclosures Report Profile G4-33 The organization’s Akbank 2016 No policy and current Sustainability Report practice with regard doesn’t subject to to seeking external external assurance assurance for the report.
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General Description Pages Omissions External Standard Assurance Disclosures Governance G4 34 Governance structure Akbank’s Competency- No of the organization Oriented Organizational Plan, page: 19 G4-35 The process for Sustainability No delegating authority Management Model at for sustainability topic Akbank, page: 30 G4-36 Executive-level Sustainability No positions with Management Model at responsibility for Akbank, page: 30 sustainability topics G4-37 Processes for Sustainability No consultation between Management Model at stakeholders and the Akbank, page: 30 highest governance body
SUSTAINABILITY REPORT 2016 131 Global Reporting Initiative (GRI) Index
General Description Pages Omissions External Standard Assurance Disclosures Governance G4-38 Composition of the Akbank Board of No highest governance Directors, pages: 43-45 body and its committees G4-39 Position of the Chair of Akbank Board of No the Board of Directors Directors, pages: 43-45 G4-40 Nomination and Akbank Board of No selection processes Directors, pages: 43-45 for the highest governance body and its committees
SUSTAINABILITY REPORT 2016 132 Global Reporting Initiative (GRI) Index
General Description Pages Omissions External Standard Assurance Disclosures Governance G4-41 Avoiding conflicts of Risk Management and No interest Compliance. pages: 47-48 G4-42 The role of the highest Akbank Board of No governance body and Directors, pages: 43-45 senior executives in setting purpose, values and strategy G4-43 Measures taken to Akbank Board of No enhance the Board of Directors, pages: 43-45 Directors’ collective knowledge of sustainability topics
SUSTAINABILITY REPORT 2016 133 Global Reporting Initiative (GRI) Index
General Description Page Omissions External Standard Assurance Disclosures Governance G4-44 Evaluating board Risk Perception and No performance Legal Compliance, with respects to pages: 47-48 sustainability topic G4-45 The role of Board Board of Directors, No of Directors in pages: 43-45 the identification and management of economic, environmental and social impacts, risks and opportunities
SUSTAINABILITY REPORT 2016 134 Global Reporting Initiative (GRI) Index
General Description Page Omissions External Standard Assurance Disclosures Governance G4-46 The highest Board of Directors, No governance body’s pages: 43-45 role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics G4-47 The frequency Board of Directors, No of the highest pages: 43-45 governance body’s review of economic, environmental and social impacts, risks, and opportunities G4-48 The highest committee Board of Directors, No or position to formally pages: 43-45 approve this report and its materiality review G4-49 Process for Board of Directors, No communicating critical pages: 43-45 concerns to the highest governance body G4-50 Nature and number Board of Directors, No of critical concerns pages: 43-45, 1001 Ideas communicated to the and Suggestions System, highest governance page: 78 body
SUSTAINABILITY REPORT 2016 135 Global Reporting Initiative (GRI) Index
General Description Page Omissions External Standard Assurance Disclosures Governance G4-51 Remuneration policies Board of Directors, No for the Board of pages: 43-45 Directors and senior executives G4-52 Process for Board of Directors, No determining pages: 43-45 remuneration G4-53 Inclusiveness of Board of Directors, No stakeholders’ views pages: 43-45 regarding remuneration G4-54 Ratio of the annual Akbank doesn’t declare No total compensation this topic due to its for the organization’s corporate policy. highest paid individual to the median annual total compensation
SUSTAINABILITY REPORT 2016 136 Global Reporting Initiative (GRI) Index
General Description Page Omissions External Standard Assurance Disclosures Ethics and Integrity G4-55 Ratio of percentage Akbank doesn’t declare No increase with regards this topic due to its to G4-54 corporate policy G4-56 The organization’s Our Bank’s Vision, No values, principles, Mission and Values, standards and norms page: 14, Our Ethical of behaviour, such Banking Approach page: ascodes of conduct 53 and codes of ethics G4-57 Internal and external Our Ethical Banking No mechanisms for Approach page: 53 seeking advice on ethical and lawful behaviour G4-58 Internal and external Our Ethical Banking No mechanisms for Approach page: 53 reporting concerns about unethical or unlawful behaviour
SUSTAINABILITY REPORT 2016 137 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Economic DMA Our Sustainability- No Oriented Financial Performance, pages: 16-17 G4-EC1 Direct Our Sustainability- No economic value Oriented Financial generated and Performance, distributed pages: 16-17 G4-EC2 Risks and Risk and Opportunity No opportunitiesdue to Oriented Assessment climate change Approach, pages: 38-39 G4-EC3 Coverage of Retirement Practices, No defined benefit plan page: 91 obligations Economic G4-EC4 Financial Akbank doesn’t receive No Performance assistance from any financial aid during government the reporting period. G4-EC5 Entry level The wages of all Akbank No wage by gender emloyees have been compared tominimum above the mininum wage wage without taking gender difference into consideration. G4-EC6 Local hiring Akbank actively . No supports local employment as one of the most significant banks of Turkey that have service network all over Turkey.
SUSTAINABILITY REPORT 2016 138 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance DMA G4-EC7 Development Environmental and Social No and impact of Policy Practice, page: 58 Indirect infrastructure Economic investments and İmpacts services supported G4-EC8 Significant Environmental and Social No indirect economic Policy Practice, page: 58 impacts Procurement DMA Encompassing All Links No Practices of the Value Chain, page: 28 G4-EC9 Spending on Encompassing All Links No local suppliers of the Value Chain, page: 28
SUSTAINABILITY REPORT 2016 139 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Environmental DMA Our Operations and No Environment, pages: 100-108 G4-EN3 Energy Our Operations and No consumption withinthe Environment, organisation pages: 100-108 G4-EN4 Energy Our Operations and No consumption outside Environment, of the organization pages: 100-108 Energy G4-EN5 Energy Our Operations and No intensity Environment, pages: 100-108 G4-EN6 Reduction of Our Operations and No energy consumption Environment, pages: 100-108 G4-EN7 Reductions in Our Operations and No energy requirements of Environment, products and services pages: 100-108
SUSTAINABILITY REPORT 2016 140 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance DMA Our Operations and No Environment, pages: 100-108 G4-EN15 Direct Our Operations and No Greenhouse Gas (ghg) Environment, Emissions (scope 1) pages: 100-108 G4-EN16 Energy Our Operations and No Indirect Greenhouse Environment, Gas (ghg) Emissions pages: 100-108 (scope 2) G4-EN17 Other Our Operations and No indirect greenhouse Environment, gas (GHG) emissions pages: 100-108 Emissions (scope 3) G4-EN18 Greenhouse Our Operations and No gas (GHG) emissions Environment, intensity pages: 100-108 G4-EN19 Reduction of Our Operations and No greenhousegas (GHG) Environment, emissions pages: 100-108 G4-EN20 Emissions Our Operations and No of ozonedepleting Environment, substances (ODS) pages: 100-108 G4-EN21 NOx, SOx, Our Operations and No and othersignificant Environment, air emissions pages: 100-108 DMA Our Operations and No Environment, pages: 100-108 G4-EN27 Mitigation of Our Operations and No environmental impacts Environment, Products and of products and pages: 100-108 Services services G4-EN28 Percentage Our Operations and No of products sold Environment, and their packaging pages: 100-108 materials that are reclaimed by category DMA Our Operations and No Environment, pages: 100-108 G4-EN29 Fines Akbank doesn’t . No Environmental and sanctions for subject to any fines Compliance noncompliance or sanctionconcernig with environmental withnoncompliance regulation withenvironmental regulation in the reporting period.
SUSTAINABILITY REPORT 2016 141 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance DMA Management of No Environmental Impact ofPersonnel Transportation, page: 105 Transportation G4-EN30 Significant Management of No environmental impacts Environmental of transportation Impact of Personnel Transportation, page: 105 DMA Our Operations and No Environment, pages: 100-108 Overall G4-EN31 Our Operations and No Environmental Environment, expendituresand pages: 100-108 investments DMA Encompassing All Links No of the Value Chain, page: 28 G4-EN32 Percentage Encompassing All Links No of new suppliers that ofthe Value Chain, Supplier were screened using page: 28 Environmental environmental criteria Assessment G4-EN33 Significant Encompassing All Links No actual and potential of the Value Chain, negativeenvironmental page: 28 impacts in the supply chain
SUSTAINABILITY REPORT 2016 142 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Social: Labour Practices and Decent Work DMA Our Employees, No pages: 84-100 G4-LA1 New employee Our Employees, No hires and employee pages: 84-100 turnover G4-LA2 Benefits Our Employees, No Employment provided to full-time pages: 84-100 employees that are not provided to temporary or part-time employees G4-LA3 Return to work Our Employees, No and retention rates pages: 84-100 after parental leave DMA Our Employees, No pages: 84-100 Labour/ Management G4-LA4 Minimum Our Employees, No Relations notice periods pages: 84-100 regarding operational changes
SUSTAINABILITY REPORT 2016 143 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Occupational DMA Our Employees, No Health and pages: 84-100 Safety G4-LA5 Percentage Our Employees, No of workforce pages: 84-100 represented in formal joint management– worker health and safetycommittees G4-LA6 Type of injury Steady Diminishing Lost No and rates of injury, Days, page: 90 occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender G4-LA7 Workers with Our Employees, No high incidence or high pages: 84-100 risk of diseases related to their occupation
SUSTAINABILITY REPORT 2016 144 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Occupational G4-LA8 Health and Our Employees, No Health and safety topics covered pages: 84-100 Safety in formal agreements with trade unions Training and DMA Our Employees, No Education pages: 84-100
SUSTAINABILITY REPORT 2016 145 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance DMA Our Employees, No pages: 84-100 G4-LA9 Average hours Our Employees, No of training per year per pages: 84-100 employee by gender, and by employee category G4-LA10 Programs for Our Employees, No skills management and pages: 84-100 Training lifelong learning that andEducation support the continued employability of employees and assist them in managing career endings G4-LA11 Percentage Our Employees, No of employees receiving pages: 84-100 regular performance and career development reviews, by gender category Diversity DMA Our Employees, No and Equal pages: 84-100 Opportunity G4-LA12 Composition Our Employees, No of governance pages: 84-100 bodies and employee breakdown Equal DMA Our Employees, No Remuneration pages: 84-100 for Women and Men
SUSTAINABILITY REPORT 2016 146 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance G4-LA13 Ratio of Our Employees, pages: No basic salary and 84-100 Akbank accepts remuneration of women a gender-neutral to men remuneration policy that is based on competency and professional experience DMA Our Employees, No Labour pages: 84-100 Practices G4-LA16 Grievances Our Employees, No Grievance about labor practices pages: 84-100 Mechanisms through formal grievance mechanisms
SUSTAINABILITY REPORT 2016 147 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Social: Human Rights DMA No G4-HR1 Human Akbank Social No rights screeningor &Environmental clauses included in Management System Investment significant investment (SEMS), page: 59 agreements G4-HR2 Employee Our Employees, No training on human pages: 84-100 rights
SUSTAINABILITY REPORT 2016 148 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance DMA Our Employees, No pages: 84-100
Non G4-HR3 Actions There were no incidents No discrimination taken in incidents of of discrimination discrimination reported in Akbank during the reporting period. DMA Our Employees, No pages: 84-100 Freedom of Association G4-HR4 Supporting Our Employees, No and Collective right to freedom pages: 84-100 Bargaining of association and collective bargaining in risk areas Security DMA Secure Banking with No State of- the-Art Technology Applications, page: 52
SUSTAINABILITY REPORT 2016 149 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Social: Human Rights G4-HR7 Percentage All of Security personnel No of security personnel receives trainings about trained in human rights Akbank corporate policies or procedures values, including respect to universal human rights. HR Assessment DMA Akbank Social No &Environmental Management System (SEMS) page: 59 G4-HR9 Operations Akbank Social No subject to human &Environmental rights reviews orimpact ManagementSystem assessments (SEMS), page: 59 DMA Value Added to Our No Customers pages: 54-84 Human Rights Grievance G4-HR12 Grievances In the reporting period, No Mechanism about human rights no complaints are through formal recorded through formal grievance mechanisms grievance mechanisms.
SUSTAINABILITY REPORT 2016 150 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Social: Society Local DMA No Communities G4-SO1 Local Akbank Social & No community Environmental engagement, impact Management System assessments, and (SEMS), page: 59 development programs
SUSTAINABILITY REPORT 2016 151 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance G4-SO2 Operations In the reporting period, No with significant there was no a specific negative impacts on operation that would local communities negatively affect local Communities. FS-13 Access points Akbank has been one No in low populated of the most significant or economically banks of Turkey with its disadvantaged areas extensive network of branches all over Turkey. FS-14 Initiatives to Value Added to Our No improve access to Customers pages: 54-84 financial services for disadvantaged people
SUSTAINABILITY REPORT 2016 152 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Anti-corruption DMA Internal Control and No Internal Audit System, pages: 49-50 G4-SO3 Total number Internal Control and No and percentage of Internal Audit System, operations assessed pages: 49-50 for risks related to corruption and the significant risks identified G4-SO4 Anti-corruption Training, No Communication and page: 96 training on anti- corruption policies and procedures G4SO5 Confirmed Internal Control and No incidents of corruption Internal Audit System, and actions taken pages: 49-50
SUSTAINABILITY REPORT 2016 153 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance DMA Corporate Governance, No pages: 40-46 G4-SO7 Total number In the reporting period, No Anti- of legal actions for Akbank doesn’t subject competitive anti-competitive to any legal action Behavior behavior, and anti- concerning with violation trust and monopoly of anticompetitive practices and their regulations. outcomes.
SUSTAINABILITY REPORT 2016 154 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Social: Product Responsibility Product DMA Value Added to Our No and Service Customers pages: 54-84 Labelling G4-PR3 Type of Value Added to Our No product and service Customers pages: 54-84 information required by the organization’s procedures for product and servıce information and labeling, and percentage of significant product and service categories subject to such information requirement G4-PR4 Total number In the reporting period, No of incidents of there is no incident non-compliance of noncompliance with regulations with regulations and voluntary and voluntary codes codes concerning concerning product and product and service service information. information and labeling, by type of outcomes G4-PR5 Results of Service Quality No surveys measuring Measurement, page: 79 customer satisfaction
SUSTAINABILITY REPORT 2016 155 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Marketing DMA Akbank respects laws No Communications as well as international regulations concerning the supply of product and services. G4-PR6 Sale of banned Akbank respects laws No or disputed products as well as international regulations concerning the supply of product and G4-PR7 Total In the reporting period, No number of incidents Akbank doesn’t subject of noncompliance to any sanctions withregulations and or fine concerning voluntary codes with noncompliance concerning marketing of marketing communications, communications including advertising, promotion and sponsorship by type of outcomes. Customer DMA Product Promotion No Privacy Activities that Protect Customer Rights, page: 49 G4-PR9 Monetary In the reporting period, No value of significant there is no significant fines for fines for noncompliance noncompliance with with laws and regulations laws and regulations concerning the provision concerning the and use of products and provision and use of services. products and services
SUSTAINABILITY REPORT 2016 156 Global Reporting Initiative (GRI) Index
Aspect DMA/ G4 Indicator Page Omissions External Assurance Product DMA About Akbank, Portfolio pages: 12-22 FS-6 Percentage of the Akbank Social & No portfolio for business Environmental lines by specific region, Management System size (e.g. micro/ SME/ (SEMS), page: 59 large) and by sector FS-7 Monetary value of Akbank Social No products and services & Environmental designed to deliver Management System specific social benefit (SEMS), page: 59 for each business line, broken down by purpose. FS-8 Monetary value of Sectoral Distribution of No products and services Credits page: 57 designed to deliver specific environmental benefit for each business line, broken down by purpose Audit DMA Risk Perception and No Legal Compliance, pages: 46-54 Active DMA About Akbank No Ownership pages: 12-22 FS-10 Percentage Akbank Social No and number of &Environmental companies held in the Management System institution’s portfolio (SEMS), page: 59 with which the reporting organization has interacted on environmental or social issues. FS-11 Percentage Akbank Social No of assets subject to &Environmental positive and negative Management System environmental or social (SEMS), page: 59 screening
SUSTAINABILITY REPORT 2016 157 Global Reporting Initiative (GRI) Index
WOMEN’S EMPOWERMENT PRINCIPLES (WEPs) PROGRESS REPORT GRI CONTENT INDEX
Women’s Empowerment Principles (WEPs) 6 Principles GRI G4 Disclosures Principle 1- High-Level Corporate Leadership for Gender Equality G4-38 G4-40 Principle 2-Equal Opportunity, Participation and Nondiscrimination G4-LA1 G4-LA12 G4-LA13 G4-EC5 G4-LA3 Principle 3-Health, Safety, and Freedom from Violence G4-HR3 G4-LA6 Principle 4-Education and Training G4-LA9 G4-LA11 Principle 5-Enterprise Development, Supply Chain and Marketing G4-DMA Practices Principle 6-Community Leadership and Participation G4-SO1 Principle 7-Measurement and Public Reporting on Gender Equality G4-DMA
SUSTAINABILITY REPORT 2016 158 Global Reporting Initiative (GRI) Index
IDENTITY
AKBANK T.A.Ş. HEAD OFFICE
Sabancı Center 34330 4. Levent – Istanbul / TURKEY Phone : +90 212 385 55 55 Fax : +90 212 319 52 52 +90 212 269 77 87 www.akbank.com
For inquiries about the Akbank Sustainability Report, please contact:
Cenk Göksan Investor Relations and Sustainability Department [email protected]
Neslihan Yücel Investor Relations and Sustainability Department [email protected]
Ayşe Aldırmaz Investor Relations and Sustainability Department [email protected]
Akbank Sustainability Report (“the Report”) was prepared solely for informative purposes and does not create a basis for any kind of investment decisions. This Report has been originally prepared and published in Turkish. Even though its translation into English has been realized with utmost care and attention for precision, the Turkish version prevails as the original. All contents and information in this Report are prepared using the information and sources deemed to be accurate and reliable in the time the Report was written. None of the information and content in this Report can be interpreted as a statement, warranty and/or commitment; nor is it guaranteed that the information and content in this Report is complete and constant.
All rights reserved.
SUSTAINABILITY REPORT 2016 159
HEAD OFFICE Sabancı Center, 4. Levent 34330 Istanbul / TURKEY Phone: +90 212 385 55 55 Fax 1: +90 212 319 52 52 Fax 2: +90 212 269 77 87 http://www.akbank.com/tr-tr/genel/Sayfalar/Iletisim-Formu.aspx