Page 20 - A&T BANK ANNUAL REPORT 2012

GENERAL INFORMATION
CORPORATE MANAGEMENT
FINANCIAL INFORMATION
MESSAGE FROM THE CHAIRMAN OF THE BOARD
Dear Shareholders,
The global economic slowdown that began in 2011, continued into
2012.
During 2012, a somber economic outlook prevailed in the most
developed markets while emerging economies achieved sluggish
but comparatively higher rates of growth. Various market
uncertainties, especially in Europe, continued to weigh heavily on
the global economy. Even though the required measures were
ultimately taken to counteract the economic woes in Europe,
radical and structural regulatory reform is still needed to achieve
long-term solutions.
Forecasts indicate that the pressure of global risks on economic
growth will continue to be felt in 2013. Growth in the more
developed countries’ economies are projected to continue at a
slower pace mainly due to soft domestic demand.
In 2012, the Turkish economy demonstrated a solid performance
despite contraction in Eurozone markets, a critical slowdown in
global economic growth and higher commodity prices.
During the challenging year, Turkey successfully implemented
new policies to manage macro risks. The country’s economy
cooled by effectively curtailing domestic demand while external
demand contributed more to growth; as a result, Turkey’s
composition of economic growth gained a healthier outlook. A
significant improvement in the country’s balance of payments,
which was previously a serious risk factor, also helped achieve the
economy’s soft landing. The current account deficit which peaked
at an all-time high in 2011 retreated to US$ 48.9 billion thanks to
slowing domestic demand throughout 2012 and increasing export
market diversification. Additionally, rising net capital inflow in the
latter months of 2012 has positively influenced Turkey’s economy,
whose growth is driven by foreign capital.
In light of these developments, the Turkish economy is expected to
follow a more sure and balanced growth trajectory in the coming
year. Economic growth in 2013 is forecast to be stronger than
that of 2012 while the current account deficit will tick up slightly
depending upon the level of growth. Unless the increase in the
Eurozone turns into a double dip, the Turkish economy is expected
to grow 4%, or even slightly above, in 2013.
In 2012, the Turkish banking sector maintained its positive growth
path.
At the end of 2012, total assets of the sector increased 12.6%
compared to the previous year-end and reached TL 1,370.8 billion.
The sector’s total assets to GDP ratio was 94% as of end of third
quarter 2012. This ratio clearly indicates that the Turkish banking
sector still has strong growth potential compared to those of EU
countries.
A&T Bank capped the year 2012 with a strong shareholder
structure and a high capital adequacy ratio and reached its
financial goals.
Our Bank closed the reporting year with a 2.46% return on assets
and 16.58% return on equity; these figures were 2.12% and
15.72%, respectively, at year-end 2011. Net profit for the period
increased 22.1% and our Bank completed 2012 with total assets of
TL 2.7 billion and net profit of TL 58.7 million.
Within the Turkish banking sector, A&T Bank is positioned as
a corporate bank specialized in financing trade with the Middle
East and North Africa, Libya in particular. The Bank focuses on
corporate loans, treasury operations and non-cash loans including
letters of guarantee and letters of credit. While continuing its
activities in the MENA region without decreasing the effectiveness
of its business, A&T Bank has developed alternative market
growth strategies due to the short-term negative impacts of the
Arab Spring. In the medium and long term, this crisis is expected
2012 was a successful year for A&T Bank in terms of
financial performance, despite the slowdown in the
global economy.