Akbank:
[edit] History of Akbank T.A.Ş
Akbank was founded in Adana, Turkey on January 1948, originally to provide financing for the cotton producers in the Çukurova region. Growing and developing over time, the Bank opened its first branch in Istanbul in the district of Sirkeci on July 14, 1950, moving its Headquarters to Istanbul in 1954. Rapidly increasing the number of its branches, Akbank automated all banking operations in 1963.
Akbank established Ak Securities in 1996, Ak Investment Fund in 1998, Ak Asset Management Company and its Private Banking Department in 2000. Akbank established Ak Pension Fund in 2003 and incorporated Ak Leasing in 2005. In February 2006, Ak Pension Fund was sold to the Aksigorta insurance company.
As of the end of 2007, Akbank ranked as Turkey's most valuable bank having the most profitable banking operations among privately owned banks in Turkey. In addition, with its extensive branch network, Akbank is one of the largest banks in Turkey in terms of loan volume.
Together with its core banking activities, Akbank offers a wide range of retail, commercial, corporate, private banking and international trade finance services. Non-banking financial services, as well as capital market and investment services, are provided by the Bank's subsidiaries. Equipped with state-of-the-art IT systems and a staff of experienced bankers, Akbank focuses on providing top quality services to a wide range of retail and corporate customers.
With its strong and extensive domestic distribution network that includes 715 branches and 13,513 employees, Akbank operates from its headquarters in Istanbul and 20 regional directorates around Turkey. Akbank provides services not only through its traditional delivery channels such as its branches, which include "Credit Express" consumer loan only branches and "Big Red House" mortgage loan only branches, but also through Retail and Corporate Internet Branches, the Telephone Banking Center, 1.855 ATM's, 835 BTM's, 253.274 POS terminals and its new high-tech channels such as cell phones and web-based platforms. Additionally, Free Banking Areas have been set up inside branches in which customers have access to both Internet and telephone banking services. Akbank NV in the Netherlands and Akbank AG in Germany, as well as a branch in Malta, carry out Akbank's overseas operations.
On January 9, 2007, Akbank and Citigroup have successfully completed the strategic partnership agreement according to which Citigroup acquired a 20% equity stake in Akbank for approximately US$ 3.1 billion (YTL 0.095 per share). This strategic partnership with Citigroup contributed dearly to the development of new commercial banking activities, to the improvement of available products and to the development of new products.
The year 2007 has been a year in which Akbank successfully progressed to become the most valuable, stable and innovative bank in Turkey, and developed new products and delivery channels that addressed its customers' needs. These include "smsCredit", enabling customers to apply for consumer loans solely with their citizenship number via an SMS message; "Credit Express" branches selling only consumer loans; "the Credit Machine" which gives a client the opportunity to get a loan without going to the bank and the new credit card "Wings", the first of its kind in the sector with the most advantageous mileage program.
At the end of 2007, net profit of Akbank reached 2 billion YTL (approximately 1,76 billion US dollars) and its asset size amounted to 72,1 billion YTL (approximately 62,2 billion US dollars). With higher levels of equity, strong deposit franchise, low-cost funding opportunities and strong growth in its asset size, Akbank becomes a bank having the most profitable banking operations among privately owned banks in Turkey. In 2007, Akbank's loan portfolio reached 40 billion YTL growing by 32% and market share increased to %13 from 13,4%.
In 2007, consumer loans grew by 43% and increased to 8,8 billion YTL, reaching a market share of 13,2%. In addition to that, general purpose loans recorded a 83% increase and reached 3,4 billion YTL with an increase in market share from 10,4% to 11,6% compared to last year.
In 2007, deposits grew by 21,3% reaching 43,6 billion YTL coupled with an increase in market share from 11% to 11,6%.
In 2007, Akbank continued to raise funds from foreign markets at favorable terms; the total of these resources rose to US$ 7,889 million.
25% of Akbank's shares are traded on the Istanbul Stock Exchange. The bank's Level 1 ADRs are traded on the IOB in London and the OTC in the United States. As of December 31, 2007, Akbank's market capitalization stood at US$ 22, 5 billion, making it the most valuable bank on the Istanbul Stock Exchange.
[edit] Management Board & Group Executive Committee
[edit] Strategy
Vision;
To become the most admired company, with the best people, constantly delivering outstanding results
Mission;
To provide the best banking experience in Turkey, offering outstanding value for its stakeholders
Goals
- Achieving a long term sustainable ROE of over 22%
- Increase total assets market share from 13% to 20% as of 2011
- Take the first place in the "Best Place to Work" rankings
- Become the company with the most valuable brand name in Turkey
Foundations of Akbank's Strength
- Turkey's most valuable bank
- The most profitable banking operations among privately owned banks in Turkey
- The highest credit ratings to be given to a bank in Turkey
- 715 branches located throughout the country
- An extensive and stable funding base
- A wide-ranging customer portfolio with the ability to attract new customers
- A robust capital structure and a high capital adequacy ratio
- An extensive and diversified loan portfolio with a low NPL ratio
[edit] Recent Strategic Alliances and Acquisitions
Citigroup and Akbank announced that, following receipt of all required regulatory approvals, the parties have successfully completed the acquisition by Citigroup of a 20% stake in Akbank. Under the terms of their agreement announced on October 17, 2006, Citigroup has acquired a 20% equity stake in Akbank for approximately $3.1 billion, at a price of 9.50 Yeni Kurus (YKr) per share.
Citigroup obtained its shares in Akbank through (a) the purchase of shares equal to approximately 11.67% of the fully diluted capital of Akbank from Sabanci family members and Sabanci Holding subsidiaries at 9.50 YKr per share and (b) the issuance of new Akbank shares, equal to 8.33% of Akbank’s fully paid up capital, at the same price through a reserved capital increase in favor of Citigroup. The parties’ rights of first refusal or first offer under the agreements become effective at the closing.
In addition, pursuant to the terms of their agreement, Citigroup’s nominee, Mr. William J. Mills , has been appointed to Akbank’s Board of Directors, and Mr. Ege Çağlar, Sabanci Holding’s nominee, has been appointed to the Board of Directors of Citigroup's Turkish banking subsidiary, Citibank A.S.
The agreement establishes a strategic collaboration between Citigroup and Akbank to pursue new commercial activities, referral arrangements and to share expertise and technology. Through its strategic investment Citigroup offers Akbank access to Citigroup’s know-how in world-class product innovation, most advanced credit risk management practices and top quality management training programs, which are expected to strengthen Akbank’s performance and accelerate its growth in both retail corporate and investment banking business lines.
[edit] Milestones
Akbank, was founded in Adana in January 1948, originally to provide financing for the cotton producers in the region. Growing and developing over time, the Bank opened its first branch in Istanbul in the Sirkeci district on July 14, 1950; in 1954, it relocated its Headquarters to Istanbul. Rapidly increasing the number of its branches, Akbank automated all banking operations in 1963.
Akbank established Ak Securities in 1996, Ak Investment Fund in 1998, Ak Asset Management Company and its Private Banking Department in 2000. Akbank established Ak Pension Fund in 2003 and incorporated Ak Leasing in 2005. In February 2006, Ak Pension Fund was sold to the Aksigorta insurance company.
On January 9, 2007, Akbank and Citigroup have successfully completed the strategic partnership agreement according to which Citigroup acquired a 20% equity stake in Akbank for approximately US$ 3.1 billion (YTL 0.095 per share). This strategic partnership with Citigroup contributed dearly to the development of new commercial banking activities, to the improvement of available products and to the development of new products.
Akbank has been conducting overseas activities through its two subsidiaries in Germany (Akbank A.G.) and the Netherlands (Akbank N.V.) and a branch in Malta.
[edit] Principal Subsidiaries
AS OF 31 MARCH 2008
Ak Investment Fund (64.99 %)
Ak Asset Management (99.99%)
Ak Global Funding B.V.
AkLease (99.99%)
Ak Investment (Ak Yatirim) Brokerage (99.80%)
Akbank N.V.
Akbank AG
[edit] International Awards
The Banker: Best Bank of the Year in Turkey (2006)
Euromoney: Best Private Banking in Turkey (2006) Akbank is highly commended in the Banker Technology Awards 2006 for Speedy - Cellular Credit
The Banker Technology Awards are designed to provide financial institutions and their clients around the world with an objective analysis of the technological expertise that exists within key business areas. The Awards highlights those solutions and projects that have made a real difference over the past 12 months.
Akbank has been quoted positively and awarded by numerous organizations for its adherence to the principle of transparency in corporate governance practices.
• The annual Standard and Poor’s Survey on Transparency and Disclosure once again revealed that Akbank is the only bank to be in top position with regard to transparency and disclosure
• BORYAD (Turkish Shareholders Association) named Akbank “The Most Investor- Friendly Company of 2006”, due to the priority Akbank attaches to corporate governance principles and for being the first bank that has bought back its founders’ shares.
• Akbank continues to have the highest credit ratings to be given to a bank in Turkey.
[edit] References
[edit] External links
[edit] See also
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