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GENERAL INFORMATION
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CORPORATE MANAGEMENT
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FINANCIAL INFORMATION
A&T BANK 2013 ANNUAL REPORT
Dear Shareholders,
We are honored to host you at the Annual Shareholders Meeting
of A&T Bank. We would hereby like to present you with a
brief assessment of economic and banking developments in
Turkey, followed by information on the financial and operational
performance of the Bank in 2013.
Despite the slight recovery in developed economies, global
economic activity sustains its weak position due to the slowdown
in the growth rates of developing countries, which were driving
force of growth after the global crisis. The monetary policies
implemented by the central banks of developed countries continue
to affect global financial markets. Global risk appetite has displayed
a fluctuating course since the last quarter of 2013 due to the
expectation that the US Federal Reserve Bank (FED) will reduce
the asset purchases. The exit strategy of the FED in short-term and
increase in interest rates in mid and long term will determine the
direction of international capital movements. In the period ahead,
it is expected that the global liquidity level will decrease and new
regulations will be launched forcing the banks to be more prudent.
As a result, external financing possibilities for developing countries
will display a fluctuating course.
In Turkey, the economy, which had recorded a GDP growth of 2.2%
for the prior year, expanded at a rate of 4.0% at the end of the first
nine months of 2013. According to foreign trade data, exports to
the Euro Zone, which plays a key role in Turkey’s export volume
as its major trading partner, increased while exports to Africa and
the Near East, which accounted for a steadily growing share of
Turkey’s export volume during the last years, displayed a decrease.
Consequently, as of the end of 2013, total exports declined by
0.4% compared to previous year. In the meantime, imports rose
by 6.4% due to increasing domestic demand. In line with these
developments, Turkey’s foreign trade deficit increased by 18.7%
to US$ 99.8 billion at the end-2013 compared to US$ 84.1 billion
a year earlier. In parallel to deterioration in trade balance, current
account deficit rose by 28.3% to US$ 56 billion as of the end of
November in 2013 compared to US$ 43.6 billion the prior year’s
November-end. On the inflation front, the consumer price index
(CPI) which dropped to 6.16% in 2012-end, rose to 7.40% as of
the end of 2013.
Indicators suggest that the banking sector protects its healthy
structure.
• As of the end of 2013, total assets of the sector increased by TL
361.7 billion to TL 1,732.4 billion, up 26.4% compared to year-
end 2012. The balances of the loans and securities portfolios, the
most significant placement items, were TL 1,047.4 billion and
TL 286.7 billion, respectively. Loans and non-performing loans
(gross) rose by 31.8% and 26.4% respectively, while securities
portfolio went up by 6.2%.
• Total deposits increased 22.5% over year-end 2012, reaching TL
945.8 billion while total equities amounted to TL 193.8 billion, an
increase of 6.5%.
• Profitability performance indicators suggest that the Turkish
banking sector has retained its healthy structure compared to the
banking industries in other countries. The sector recorded profit
of TL 24.7 billion in 2013, rising TL 1,2 billion or 5.1% year-on-
year. Return on equities decreased from 15.7% to 14.2% in the
same period.
• At the end-2013, the capital adequacy standard ratio stood at
15.3%, compared to 17.9% at year-end 2012.
A&T Bank maintained a high level of profitability and achieved its
financial targets in 2013.
• As of year-end 2013, the Bank’s total assets stand at TL 3,351.7
million by increasing 22%. While cash loans expanded by 97%
to reach TL 1,447.8 million, marketable securities portfolio fell by
16.3% to TL 275 million.
• Deposits, which rank first among external sources, increased by
161% to TL 2,686.8 million, while funds borrowed fell by 91% to
TL 111.8 million. In this period, shareholders’ equity rose by 12%
to reach TL 462 million.
• A&T Bank continued to support contracting firms, as well as
exporters and importers in 2013. Despite shrinking foreign
trade between Turkey and the MENA region, total of letters of
guarantee, letters of credit, and bank acceptances climbed by
51% and reached TL 2,381.5 million in 2013.
• The Bank posted net profit for the period of TL 49.6 million,
which was TL 59.6 million in 2012, meanwhile, return on assets
and return on equities ratios realized as 1.65% and 12.02%,
respectively, at end-2013, compared to 2.46% and 16.58%,
respectively, a year earlier.
• The Bank’s capital adequacy ratio continued to decrease in
line with the climb in cash and non-cash lending activities and
reduced to 14.65% at end-2013.
Dear Shareholders,
As highlighted in the strategic business plan covering the years
from 2014 till 2016, the Bank’s top priority objectives include
further expanding foreign trade operations particularly across the
MENA region, focusing on new and alternative overseas markets,
increasing domestic banking operations, enhancing operational
productivity and finally, maximizing customer satisfaction by means
of developing new products and distribution channels.
We have submitted the 2013 Annual Report, Balance Sheet,
and Income Statements for your inspection and approval. On
behalf of A&T Bank’s Board of Directors. I would like to extend my
thanks to our customers for their continued confidence in us; our
correspondent banks in Turkey and abroad for their strong and
deep-rooted relationships with us; our General Directorate for its
effective management; all our employees for their contributions
to the successful results; and to our esteemed partners for their
continuous support and their honoring of our General Assembly.
On Behalf of the Board of Directors
Osman Arslan
Chairman
The Board of Directors Report
Submitted to the General Assembly