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A&T BANK ANNUAL REPORT 2014
Dear Shareholders, Business Partners
and Employees,
In 2014, inflation rates remained low
worldwide due to a steep decline in
commodity prices in general, and
especially in oil prices. While the US
economy recorded a strong recovery,
economic growth lost momentum
in developing countries, and most
significantly in China; economic activity
also remained weak and vulnerable in
the Euro Zone and Japan. These widely
varying trends are reflected in the
divergent monetary policies implemented
in different countries. The Federal Reserve
Bank of the United States (the Fed),
which ended its bond-buying program
in October, is expected to start raising
interest rates in 2015. On the other hand,
the European Central Bank, the Japanese
Central Bank and the Chinese Central
Bank, which have eased their monetary
policies using various means during the
same period, are likely to take new steps to
jumpstart their economies. Additionally, it
is expected that, in the event of continued
weakness in global economic activity, the
Fed may postpone its return to normal
monetary policy.
Leading indicators show that Turkey’s
economy has been slowing since the
second quarter of 2014. In 2013, the
Turkish economy grew 4.1% in real terms,
while expanding at a 2.8%pace in the first
nine months of 2014. The contribution
of exports to economic growth has
gradually dropped due to the global
slowdown. Meanwhile, the narrowing of
the current account deficit stood out as a
welcome development. Thanks to a fall in
Turkey’s foreign trade deficit, the current
account gap declined by 29.1% in 2014,
compared with the previous year, to
US$ 45.8 billion. The downward trend in
the current account deficit is expected to
continue, albeit at a slower pace. On the
other hand, the uncertainty surrounding
global monetary policies, geopolitical
developments, and the fragility of
international demand all pose risks to
economic growth in the coming year.
Despite the fluctuations in international
financial markets, Turkey’s banking
system has maintained a healthy and
strong structure. Turkish banks do not
seem to face any problems in rolling over
external debt and also have sufficient
buffers against any possible foreign
currency liquidity shock. On financial
side, the Turkish banking industry’s total
assets grew 26.4% in 2013, while growth
stood at 15.1% in 2014, with total assets
amounting to TL 1,994.2 billion.
A horizontal progress is observed
in the industry’s overall profitability.
Net profit realized TL 24.7 billion same
as the previous year, while return on
equity dipped to 12.2%down from
14.2%at year-end 2013.
Despite all the fluctuations in the market,
A&T Bank, the banking expert of the
Middle East and North Africa, continues to
grow its balance sheet in accordance with
its long-term strategy. Our Bank’s total
assets increased 10.9%during the year,
climbing to TL 3.7 billion as of end-2014.
With cash loans amounting to
TL 1.4 billion and non-cash loans totaling
TL 2.3 billion, we continued to provide
significant support to both our customers
as well as the Turkish economy as a whole.
Message from the General Manager
In line with its goal of developing customer-focused
innovative products and services, A&T Bank
launched Internet Banking in the second
half of 2014.