Banking Services - DenizBank

Section I Introduction
Message from the CEO
In spite of the fact that 2009 was a challenging period
for financial markets worldwide, DenizBank continued
her role in supporting the Turkish economy without
compromising her prudent banking approach.
Throughout 2009, as the world economy
focused on recovering from the damage of the
global crisis, DenizBank experienced a period
of considerable success and continued to move
forward in her strategy of sustainable growth.
We continued our support of
the Turkish economy throughout
2009.
DenizBank, part of the Dexia Group, will strive
to attain her goals and will continue to create
value for her partners, as well as for the Turkish
economy. When ranking Turkish banks by
their loan to asset and loan to deposit ratios,
it is clear that DenizBank has maintained her
position at the top. DenizBank’s determination
to support of the Turkish economy, taken as a
mission since her establishment, will continue
increasingly through 2010 and beyond.
We continued expanding our
branch network without slowing
down.
In line with our strategy of having closer links
with our clients, particularly in retail banking,
SME banking and agricultural banking, we
continued our branch network efforts with
continued momentum and opened 50 new
branches in 2009. This expanding branch
network and growing client base has allowed
the Bank to increase her consolidated customer
deposits by 24%, well over the sector average,
to reach TL 14,701 million. In line with her
“financial supermarket approach”, DenizBank
provides all types of financial services at her
branches. Our branches have made further
progress in marketing our products, ranging
from insurance policies to investment products,
from private pension plans to financial leasing.
In 2009, the Bank was able to increase her
assets, while at the same time, maintaining her
strong capital structure. As of year-end 2009,
DenizBank increased her consolidated assets
7% over the previous year to reach TL 25,943
million, while attaining a market share of 3.1%
in the sector. Our total equity has increased
30% over year-end 2008 to reach TL 2,968
million. As of year-end 2009, our consolidated
capital adequacy ratio stands at 16.7%.
In 2009, we further enhanced our
expertise and leadership in our
priority sectors.
As in previous years, in 2009, DenizBank
served all sectors of the economy, especially
the competitive sectors, including agriculture,
energy, tourism, education, health, sports,
infrastructure and maritime business, with
a wide range of products. The Bank’s
consolidated loans increased 8% over the
previous year to reach TL 18,558 million.
The fact that DenizBank figured among the
sector’s top ten banks with regard to 126% of
her loan to deposit ratio in 2009 indicates her
determination in creating value for the real
sector and the Turkish economy in general.
We delivered a healthy growth
performance based on sound
principles.
In 2009, with the significant drop in interest
rates, Treasury bill portfolios have had a
positive effect on the high profitability of the
banking sector. However, during this period,
DenizBank has preferred not to compromise
her core banking activities.
The ratio of our security portfolio-kept mainly
for liquidity management purposes-to our
assets has been 12.5%, one of the lowest rates
in the sector in 2009.
As a result, the Bank delivered a healthy
growth performance based on sound principles
throughout 2009, realizing profits from core
banking activities such as loans and deposits,
rather than from security portfolios, contrary
to the dominant tendency in the sector.
The end-of-year profitability of the sector
increased 51% percent over year-end 2008,
whereas the Bank’s profitability increase was
77%, with a resulting consolidated net profit
of TL 605 million. This success is the most
important indicator that DenizBank will be
among the leaders in the sector in sustainable
profitability, even when interest rates fall in
real and nominal terms in 2010 and beyond.
We are planning to increase retail
banking product diversity and
activate product use.
From the first half of 2009 onwards, personal
loans followed a strong development
path throughout the sector. The Bank’s
performance has superseded the overall
growth rate in the sector in this area,
thanks to her innovative products, solutions
providing easy access to loans and convenient
interest and maturity conditions. As of yearend
2009, our consumer loans increased
7% to reach TL 3,970 million. Our general
purpose loans and housing loans grew
2% and 10%, respectively, while car loans
increased 98%, contrary to the decrease in
the banking sector as a whole. As of year-end
2009, the Bank’s market share in consumer
loans stood at 4.3%.
16
«« CONTENTS