Page 33 - A&T BANK ANNUAL REPORT 2012

31 30 A&T BANK ANNUAL REPORT 2012 •
TREASURY
The Treasury Department sustained
its success in managing A&T
Bank’s short and long term foreign
currency and Turkish lira liquidity.
In line with its principle of prudence, as well as its profitability
targets, A&T Bank Treasury Department implemented
effective and flexible treasury policies in 2012. With this
strategy, the Bank sustained its profitability, despite
shrinkage in interest rate and profit margins.
The global financial crisis reached an unprecedented level
in 2012. Rising sovereign risks in Europe influenced the
entire continent, spreading the crisis to the banking industry
due to the thorough interpenetration of financial markets.
As a result, global risk appetite sustained a major blow.
This said, Turkey still achieved a high growth rate thanks to
positive market conditions and foreign capital inflow, which
continued during the second half of 2012. Turkey’s growth
rate did decelerate however, due to measures taken as of
the second quarter to restrain the rise in credits. And during
the third quarter, the outflow of international capital from
emerging markets, including Turkey, began mainly as a
result of uncertainties in the global economy and weakening
risk appetite.
Despite the adversities in international markets, the
Treasury Department successfully continued to manage
A&T Bank’s short and long term foreign currency and
Turkish lira liquidity. In line with its targets for 2013, the
Treasury Department will continue its foreign currency and
Turkish lira borrowings and investments through money
market transactions. Furthermore, the Department aims to
effectively manage the Bank’s short-term fund utilization
through various instruments including repo, reverse repo
and foreign exchange swaps. And in building a strong
liquidity and funding position, the Treasury Department
also plans to address the pricing of treasury management
products such as spot and forward FX transactions, fixed
income securities, and commodity and derivative products.
FINANCIAL INSTITUTIONS
Turning toward alternative markets
and products, A&T Bank capped
the year 2012 with solid results in
foreign trade.
Despite the adversities of the global economy, A&T Bank
successfully protected its strong position in its niche markets
of correspondent banking and trade financing. Throughout
the year, efforts continued with various country visits to
increase the trade volume between Turkey and MENA
countries, and to expand the correspondent network in
this region. The contractionary pressure resulting from the
adverse events in North Africa and the Middle East in 2011
on foreign trade, and Turkey’s economy overall continued in
2012. However, by turning toward alternative markets and
products, A&T Bank capped the year 2012 with solid results
in foreign trade.
In 2013, the Financial Institutions Department targets to
increase the foreign trade volume in its niche markets.
Accordingly, the Department will expand its correspondent
network in the Middle East and North Africa, as well as in
other countries, particularly West Africa in parallel to Turkey’s
increasing trade with this region. Turning toward alternative
markets, the Department plans to deepen bilateral relations
with this region and provide its clients with customized
services in trade financing.