2011 annual report 2011 annual report - Garanti Bankası

entrepreneurs by Garanti amount to TL433 million. Organized for supporting andencouraging woman entrepreneurship, theWoman Entrepreneur of Turkey Competitionreached 5,600 participants in its fifth year.• Continuing to finance agriculturalactivities, Garanti closely monitored thedevelopments in the sector and designedtwo new loan products to be used withinthe frame of licensed warehousing andIPARD (Instrument for Pre-AccessionAssistance for Rural Development) grantprogram. The Bank took into considerationthe varying cash flow in the agriculturalindustry and targeted to provide fundingto agricultural enterprises by developingmodels for financing suppliers with theguarantee of main companies. Alsoongoing were collaborations with variousfarmer associations for the automation ofagricultural cash flow. The funds providedunder the prefinancing loan for farmerswith maturities aligned with harvest timesand medium/long-term investment loansamounted to TL 700 million. In TurkishGrain Board loans, Garanti disbursed TL 82million, breaking the record of the past sixyears, and remained the leader among allbanks.• Garanti acted as an intermediary in thechanneling of overseas funds created bythe European Bank for Reconstruction andDevelopment (EBRD) Council of EuropeDevelopment Bank (CEB) to the SMEs.The funding provided under the Turseffprogram set up by the EBRD for enterprises’investments in energy efficiency was worthUSD 60 million. The CEB fund of EUR 35million allocated for cluster and industrialsites, and for lodging establishments wasmade available to the SMEs within the frameof the agreement with the DevelopmentBank of Turkey.• As a result of effective risk monitoring, theNPL ratio was way below than that of thesector and stood at 2.92% as at end-December.Under the “Growth Support Linked to Scale”program developed by KOSGEB (Smalland Medium Sized Industry DevelopmentOrganization) in order to extend financialsupport to SMEs, Garanti provided loansupport worth TL 931 million to 23,000customers, and was the most frequentlypreferred bank with 34% share in KOSGEBapplications. The Bank provided financingin the amount of USD 204 million to 1,150customers under the “SME Export FinanceSupport” program. Garanti ranked first in loandisbursements among 17 banks that actedas an intermediary in both programs. Morethan 15,000 customers received funds worthTL 466.5 million in total within the scope ofKOSGEB Bridge Loan Facilities with graceperiods. Including these loans, the Bankrealized 77% increase in total TL installmentloans. Guaranteed Payment productintroduced during the reporting period providesbank protection for credit sales in the tradebetween SMEs. While buyers easily effect theirpayments on the due date, sellers enjoy theguarantee that their receivables will be paid onthe collection date.Making the SMEs feel that it stands by themat all times with all these activities, productsand solutions, Garanti Bank further reinforcesits strong position drawing on the strengthmustered from the positive customer feedback:“I am in the tourism industry and I own amedium-sized hotel with 200 beds in theAntalya region. There are occasional investmentneeds for my 12-year establishment. Last year,I had planned on an investment for the heatingsystem, which is essential for our facility.During my contacts with banks for borrowingmoney under the incentive certificate,Garanti Bank mentioned Turseff Loans. Werenewed our hot water system making useof solar panels. We also fulfilled part of ourneed with power generation. Thanks to theloan with an affordable interest rate GarantiBank suggested, we were able to realize ourinvestment at a lower financing cost.”“I own an enterprise operating in the OSTİMcluster site. I had never needed to get a loanbefore. When Garanti Bank representativesvisited me in my office, I told them about theplant investment I would start in February andmy need to purchase machinery. They toldme about the low-interest rate and long-termadvantages of the SUFI loan facility extendedby the Council of Europe Development Bank.They took action quickly and provided the loanI needed. I purchased the machinery at lowcosts and increased the capacity at the plant. Ican say that currently Garanti is the only bankI work with.”Below are some results from the marketresearch conducted by Ipsos KMG researchcompany in 2011 with 613 SMEs in 12provinces across Turkey:• Garanti Bank is the first bank recalled inSME Banking,• Garanti Bank’s image: “innovative”, “standsby us through tough times”, “understandsour needs”, and “the Bank of SMEs”,• Garanti is preferred for the following reasons:“fast transactions”, “reliable bank” image,“quality/good service” and “satisfaction”,• Companies having Garanti as theirprimary banking partner prefer GarantiBank because of its “widespread branch/ATM network”, “diversity of productsand services”, “accurate and errorfreetransactions”, “quick finalization ofdemands”, and “understanding, resolutionof problems.”Projections for 2012In 2012, Garanti will continue to bolster theeconomy through financing to SMEs, thedriving force of the Turkish economy. TheBank will take steps to render its profitable andhealthy growth sustainable with its open andpowerful communication understanding, andcustomer-centric approach that is always giventhe foreground.Priority targets set for 2012 are presentedbelow:• Introduce new products and services thatfacilitate, and provide protection for thecommercial lives of SMEs,• Improve information and advisory servicesso as to provide SMEs with easier access toinformation,• Design solutions for the needs of SMEsin different departments by establishingpowerful brand partnerships andcollaborations with regional/sectoralinstitutions,• Offer different financing alternatives toentrepreneurs requiring fast and simpleaccess to financial sources,• Take on efforts geared towards advancingSMEs specific to provinces that do notreceive adequate financing support frombanks,• Provide sector- and region-specific financialsolutions through projects that will be coexecutedwith institutions such as clusters,industrial sites and export unions.GARANTI BANK 2011 ANNUAL REPORT 43