En-Isbank2009.Pdf
Total Page：16
File Type：pdf, Size：1020Kb
Contents Presentation 1 İşbank at the onset of 2010 2 Turkey’s Bank 4 İşbank since 1924 5 İşbank’s Vision, Objectives, and Strategy 6 Pioneering Activities 7 İşbank’s Financial Indicators and Shareholder Structure 8 Chairman’s Message 12 CEO’s Message 18 İşbank’s transformation journey: Customer Centric Transformation (MOD) 20 The Economic Outlook in 2009 26 İşbank in 2009 49 Subsidiaries 54 Corporate Social Responsibility at İşbank 60 Annual Report Compliance Opinion Management and Corporate Governance at İşbank 62 Board of Directors & Auditors 64 Executive Committee 66 Organization Chart 68 Managers of Internal Systems 68 Information About the Meetings of the Board of Directors 69 İşbank Committees 71 Human Resources Functions at İşbank 72 Information on the Transactions Carried out with İşbank’s Risk Group 72 Activities for which Support Services are Received in Accordance with the Regulation on Procurement of Support Services for Banks and Authorization of Organizations Providing this Service 73 İşbank’s Dividend Distribution Policy 74 Agenda of the Annual General Meeting 75 Report of the Board of Directors 76 Auditors’ Report 77 Dividend Distribution Proposal 78 Corporate Governance Principles Compliance Report Financial Information and Assessment on Risk Management 89 Audit Committee’s Assessments on the Operation of Internal Control, Internal Audit and Risk Management Systems, and Their Activities in the Reported Period 91 Independent Auditors’ Report 92 Unconsolidated Financial Statements 102 Financial Highlights and Key Ratios for the Five Years Period Including the Reported Period 103 Explanations on İşbank’s Financial Condition, Profitability and Solvency 105 Information on Risk Management Policies Applied per Risk Types 107 İşbank’s Credit Ratings 108 The Unconsolidated Year End Financial Report as of December 31, 2009 168 Information to Shareholders İşbank Annual Report 2009 İşbank at the onset of 2010 1 İşbank at the onset of 2010 Largest private bank in Turkey in terms of assets Since its establishment in 1924 in Ankara, İşbank has made ever-increasing contributions to the Turkish economy, and has been an icon, pioneer, and leader of the modern banking in Turkey by introducing innovative business practices, products and services. In line with its mission, which can best be summarized as “Turkey’s Bank”, İşbank provides products and services in retail, private, commercial, and corporate banking, embracing the whole society. İşbank assumes key roles in every aspect of both the economic and business operating cycles, and is the largest private bank in Turkey in terms of assets. The only Turkish bank in the Global Top 100 Banking Brands İşbank, whose total assets have reached TL 113.2 billion as of year-end 2009, • ranked 91st in The Banker magazine’s “Top 500 Banking Brands” list compiled in cooperation with Brand Finance Plc. İşbank was the only Turkish bank in the top 100 banks of the list. • numbered 331st in the Forbes magazine’s annual “Global 2000” list, ahead of all other Turkish companies on the list. (*) • took the 101st place in the “Top 1000 World Banks” list by The Banker magazine, a prestigious global publication. (**) Strong and wide service network İşbank’s large scale and service delivery strength is defined by its extensive domestic service delivery network. This consists of, • 22,473 employees • 1,078 domestic and 15 international branches • 3,591 ATMs • Over 1,000 kiosks Financial participations operating in a variety of business lines from investment banking to portfolio management, and leasing to private pension, complement İşbank’s competency in product and service delivery and also maximize its competitiveness. İşbank, as a significant contributor to the development of the industrial sector in Turkey, has a participation portfolio comprised of leading companies active in a wide range of business lines. İşbank’s shares are traded on the Istanbul Stock Exchange (ISE). In addition, İşbank’s shares are traded as American Depositary Receipts (ADR) by Qualified Institutional Buyers on over the counter markets and as Global Depositary Receipts (GDR) on the London Stock Exchange. (*) Based on the annual rankings among public companies. (**) Based on the Tier I capital of banks as reported in their 2008 consolidated financial statements. İşbank Annual Report 2009 Turkey’s Bank 2 Turkey’s Bank Growing through our strength… The “İş” brand The “İş” brand, identified with the phrase “Turkey’s Bank,” unites long-standing tradition, trust, a pioneering spirit, and innovation all under one roof. Sustainable and strong financial structure With its sustainable and strong financial structure, İşbank contributes to the domestic economy, generates value for its shareholders and stakeholders, and manages its assets effectively and efficiently. İşbank Annual Report 2009 Turkey’s Bank 3 Skilled human resources The Bank’s workforce of more than 22,000 employees comprises one of the cornerstones that give the competitive advantage to İşbank, known as the “banking academy” of Turkey since its establishment. İşbank encourages its employees to be creative and strides confidently into the future with them. Ubiquitous service İşbank provides service ubiquitously to millions of customers via a multi-channel delivery network and more than 1,000 branches. İşbank continues to grow through its strength. It is confidently progressing toward completion of its first centennial with the same fundamental mission established 85 years ago. İşbank Annual Report 2009 İşbank since 1924 4 İşbank since 1924 • İşbank has taken on important duties in Turkey’s economic development in the first years of the Republic when capital accumulation was scarce. • Founded to put even the smallest amount of savings to good use and allocate it to economic development, İşbank has played a major role in inculcating and developing the fundamental concept of saving among the Turkish people. • In the years that followed, İşbank started to expand its presence, growing across the country by opening branches. • Setting up its first overseas branches in 1932 in Hamburg, Germany, and Alexandria, Egypt, İşbank became the first Turkish bank to establish a branch in a foreign country. • The 1950s was a period when İşbank expanded its participations portfolio. • As the Bank’s participations became the engines of Turkish industry, many investments were made in a wide range of commercial sectors, led by the manufacturing industries, and were supplemented with additional financial support. Continuing the momentum of expanding its branch network in the 1960s and 1970s, İşbank placed special emphasis on the development of its overseas branch network in the 1980s. • During the 1980s, İşbank begins to provide an extensive array of services to its customers in line with its multi-channel banking vision. • In 1982, İşbank introduces ATMs to Turkey and effectively brands the term “Bankamatik.” • In 1997, by rolling out the “Blue Line” and introducing internet banking for the first time in Turkey, İşbank also becomes the pioneer in these areas. • In an effort to increase its service level and product range in line with customer demands and expectations, İşbank has conducted Research & Development activities and led in the deployment of new technologies in successive years. • Relocating its headquarters from Ankara to Istanbul in 2000, İşbank sustained its steady growth trajectory. • The Bank launched the biggest transformation project in its history, adeptly foreseeing the changes the world and national economies would undergo: İşbank focuses on customer oriented restructuring in line with its strategic goals. • In parallel with the accelerated advancement of technology in recent years, İşbank continues to expand its multi-channel delivery network to enable customers to complete all of their transactions easily, securely, and quickly via their most preferred alternative distribution channel 24/7. İşbank Annual Report 2009 İşbank’s Vision, Objectives, and Strategy 5 İşbank’s Vision, Objectives, and Strategy Our Vision “To be the most preferred bank in Turkey by customers, shareholders and employees by maintaining our leading, pioneering, and trusted position.” Our Objectives For our customers; • To be the bank that is the most preferred service provider in all the sectors and customer groups that we target, • To provide our customers complete, reliable, and high quality service by means of our highly competent employees, extensive branch network, and non-branch banking channels, • To abide by our high business ethics and principles without exception. For our shareholders; • To consistently increase the value of our shares, • To manage risk effectively in whatever we do. For our employees; • To be a preferred employer and offer employees programs and training opportunities that will foster their personal and professional development, • To propagate our customer-focused approach among all our personnel, • To support and encourage loyalty, assuming responsibility, and creativity, • To deploy an employee hiring, evaluation, appointment, and advancement system that is based on competencies and performance and that is fair and trustworthy. In summary: “İşbank’s goal is to consistently increase the value that it creates for its shareholders by being a bank that responds to its customers’ needs quickly, effectively, and with high-quality solutions and that encourages its employees to achieve a high level of performance in their jobs.” Our Strategy Our strategy is based on “the Bank