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The Financial Services Sector in Turkey
December 2015
Investment Support and Promotion Agency of Turkey 1
Glossary of Terms
Acronym Definition Acronym Definition
ATM Automated Teller Machine Insurance Claims Follow-up and
HAYMER
AUM Assets Under Management Monitoring System
BIST Borsa Istanbul IMF International Monetary Fund
BKM Interbank Card Center
Banking Regulation and Supervision N/D No Data
BRSA NPL Non-Performing Loan
Agency
CAGR Compound Annual Growth Rate O/N Overnight
CAR Capital Adequacy Ratio Organization for Economic Cooperation
OECD
CBRT Central Bank of the Republic of Turkey and Development
CEO Chief Executive Officer Q Quarter
CMB Capital Markets Board of Turkey ROA Return on Assets
ROE Return on Equity
CRD Capital Requirements Directive
Health Insurance Information and
European Bank of Reconstruction and SAGMER
EBRD Monitoring Center
Development
SME Small and Medium Enterprises
EGM Pension Monitoring Center
TBB Turkish Bank Association
EIU Economist Intelligence Unit
TL Turkish Lira
EU European Union
TSRB Insurance Association of Turkey
FCI Factors Chain International The Association of Capital Market
FDI Foreign Direct Investment TSPAKB
Intermediary Institutions of Turkey
FİDER Turkish Leasing Agency
GDP Gross Domestic Product
Life Insurance Information and Monitoring
HATMER
Center
Investment Support and Promotion Agency of Turkey 2
Table of Contents
Executive Summary 4 C. Turkey’s Competitive Landscape 55-68
A. Turkish Financial Services 5-49 i. Turkey’s Macroeconomic Outlook
i. An Overview of Turkish Financial Industry ii. Favorable Demographics
ii. The Banking Sector in Turkey iii. Skilled and Cost-Competitive Labor Force
iii. Insurance and Pension Funds in Turkey iv. Investment Environment & Stakeholders
iv. Financial Leasing in Turkey v. Geostrategic Location
v. Factoring in Turkey
vi. Consumer Financing in Turkey
B. An Overview of the Turkish Capital Markets 50-54
i. Borsa Istanbul
ii. Brokerage Firms
Investment Support and Promotion Agency of Turkey 3Executive Summary
The Turkish financial sector proved resilient during the A key driver of the Turkish financial sector has been
global financial turmoil in 2009 as well as the ensuing its robust economy with a bright future. Over the
economic crisis thanks to the regulatory reforms and past 13 years, Turkish economy has been growing
structural overhaul that the government implemented in with an average annual real GDP growth rate of
the wake of the country’s own financial meltdown in the approximately 5 per cent and the growth momentum
early 2000’s. In fact, the reforms in the sector boosted is expected to continue. Turkey’s sizeable and
investor confidence so much that financial services has diversified economy has achieved remarkable growth
become the preferred sector for FDI, attracting over USD and became 17th largest economy in the world as of
48 billion during the past 14 years. 2014. (GDP; PPP)
Banking dominates the Turkish financial sector, Turkey’s economic growth has resulted in income
accounting for over 70 percent of overall financial growth and a growing robust middle class with
services, while insurance services and other financial increasing purchasing power.
activities also show significant growth potential. Turkey’s
As Turkish economy has expanded, it has integrated
banking sector is comprised of 34 deposit banks, 13
with the global economy with a staggering increase
development and investment banks, and 5 participation
in its volume of international transactions. Such
banks, with 21 of them holding significant foreign capital.
developments have further stimulated economic
An expanding loan base and favorable liquidity conditions activity, thus expanded financial activities.
contribute to the healthy growth of Turkey’s financial
Turkey has also set specific economic targets to
services. The sector enjoys a leading position in the world
achieve by 2023, the centennial of the Republic. One
with an ever-growing asset size and strong equity
of these targets is to transform Istanbul into a
structure protecting it against shocks that may arise from
prominent financial center. Turkey’s large and young
loans or turbulent market conditions.
population, qualified labor force and rapidly
The Turkish insurance market is still underpenetrated developing markets along with its geo-strategic
(1.4% of GDP) compared to peer countries and will location makes Istanbul an ideal candidate for a
provide significant potential as new insurers set up shop international financial hub. Since, the government
and acquire a share of the relatively untapped Turkish launched the project for Istanbul Financial Center,
market. Turkey has seen strong economic growth fueled Istanbul has rapidly made progress and is now
in part by a young and dynamic population that is considering among emerging financial centers in the
increasingly in need of financial products and services. world.
Investment Support and Promotion Agency of Turkey 4A. Turkish Financial Services
i. Overview of the Turkish Financial Industry
ii. The Banking Sector in Turkey
iii. Insurance and Pension Funds in Turkey
iv. Financial Leasing in Turkey
v. Factoring in Turkey
vi. Consumer Financing in Turkey
Investment Support and Promotion Agency of Turkey
©2014 Deloitte Turkey. Member of Deloitte Touche Tohmatsu Limited
5Major milestones in Financial Services Industry of
Turkey
Milestones of Turkey’s Financial Services Industry
1982-2000 2001-2006 2007-2012 2013-…
Capital Market Law Personal Pension Savings Mortgage Law, Official Establishment of Borsa
Istanbul Stock Exchange and Investment System Gazette No. 26454 Istanbul A.Ş. with Law
(ISE) Market opens Law Implementation of Basel No. 6362
Banking Regulation And Banking Act, Law No. 5411 II standards in Turkey Implementation of Basel
Supervision Agency Regulation on Measurement Record profitability of the III standards in Turkey
(BRSA) founded and Evaluation of Capital banking sector in Turkey State-owned banks
Consolidation of the Adequacy of Banks Law No. 6361 regarding opened up participation
Market from 100 Banks Financial Leasing, banks
to 49 Banks Factoring and Financial
Takasbank is Authorized Institutions
by CMB as the National Establishment of
Numbering Agency of Insurance Information
Turkey and Monitoring Center -
Start of internet banking TRAMER, SAGMER,
services HATMER, HAYMER
All local or foreign
insurance , reinsurance
and pension companies
operating in Turkey are
members of the
Insurance Association of
Turkey
New Capital Market Law
No. 6362
Source: BRSA, CMB
Investment Support and Promotion Agency of Turkey 6Turkish financial sector, led by banking, has been rapidly growing while
attracting tremendous amount of foreign direct investment (FDI)
Asset Size of Turkey’s Financial Sector
3.000
CAGR Share
2.500 CAGR 2008-2014 2014
19%
2.000 18% 74%
Banking
1.500 22% 14%
TL Billion
Central Bank
1.000
Insurance and Private 20% 3%
500
Pension
0% 9%
0 Other*
2008 2009 2010 2011 2012 2013 2014
Source: BRSA
• Other includes :BIST capitalization, securities, consumer finance, real estate investments, investment trusts, asset management and venture capital investment trust assets, rounded
FDI into Turkish Financial Sector
(Cumulative Value of Flows in $ Billion, 2002-2015*)
Others**
2,5
TOTAL:
$47,8
Billion
Banking:
37,6
Source: CBRT * As of Oct 2015, **Activities of Holding Companies
and Other Activities Auxiliary to Financial Services
Investment Support and Promotion Agency of Turkey 7Turkish financial sector has been a magnet attracting significant amount of
FDI..
Greenfield FDI projects in Financial Services M&As by foreign companies in Financial Services
1200 20 9000 22
1000 16 18
800 6000 14
12
600 10
8
400 3000 6
200 4 2
0 0 0 -2
Value ($ Million) Number (RHS) Value ($ Million) Number (RHS)
Source: fDi Market Source: E&Y, Deloitte
“Turkey is one of the fastest growing insurance markets
“The Turkish banking industry is highly developed and worldwide, supported by a robust economic outlook and a
competitive, in our segment in particular. Returns are large, young population. The transaction with Yapı Kredi is
important but for us the importance is mainly in its a unique opportunity to move into a market-leading
growth potential, the strategic location and export position in one of Europe’s key growth markets which is
potential" also an important bridge between Europe and Middle
East/Central Asia. This transaction fits perfectly into
Allianz’s strategy to use bolt-on acquisitions to strengthen
Sipko Schat its position in growth markets.”
Executive board member responsible,
Commercial banking, Rabobank.
Oliver Bäte,
Rabobank obtained banking license from Turkish authorities Member of the board of management of Allianz SE.
in 2013 with an initial capital investment of $300 million.
Allianz acquired 94% of YapıKredi Sigorta’s shares for USD 880 million and
80% of YapıKredi Bank’s pension business, YapıKredi Emeklilik, in March 2013.
Investment Support and Promotion Agency of Turkey 8Turkey’s foreign trade in financial & insurance services has significantly
increased in recent year..
Turkey’s Foreign Trade in Financial & Insurance
Services ($ Billion)
6 5,6
Export Import
4,8
5
4,0 3,9 3,9
4
3,2 3,2 3,2
3
2,4
2
1
0
2006 2007 2008 2009 2010 2011 2012 2013 2014
Turkey’s Foreign Trade in Insurance & Pension
Turkey’s Foreign Trade in Financial Services ($ Billion)
Services ($ Billion)
3 2,9
Export Import 2,7 3 2,7
Export Import
2,5 2,5
2,2 2,2 2,1 2,2
2,0 2,1
1,9
2 2 1,8
1,6 1,8 1,7
1,5
1,5 1,3 1,2
1,0
1
1 0,8
0,5
0,5
0
0
2006 2007 2008 2009 2010 2011 2012 2013 2014
2006 2007 2008 2009 2010 2011 2012 2013 2014
Investment Support and Promotion Agency of Turkey 9
Source: CBRTInsurance and Consumer
Banking Leasing Factoring
Pension Financing
The banking sector’s asset size grew to more than TL 2.2 trillion in June
2015.
Total Asset Size for the Banking Sector in Turkey Banking sector – comparison with Euro Area
(2013)
2400 114% 120% 317
EA
2000 100%
Turkey
TL Billion
1600 63% 80%
1200 60% 177
174
111
800 40%
60 67
400 20%
0 0% 40 7
Deposits/GDP Housing Loans/GDP Assets/GDP
Loans/GDP
Total Assets Total Assets/GDP
Source: BRSA Source: European Banking Federation,
* As of June 2015
• After the crisis in 2001, the Turkish banking sector was Top 5 Turkish Banks by Asset Size
strengthened and became one of the strongests in Europe. June 2015* TL Billion
• Turkey enjoys strong asset growth with a stunning CAGR Ziraat Bank 271
19%,with a remarkable increase in the total assets to GDP
ratio from 63% in 2005 to 114% in 2014. Despite that, İş Bank 253
Turkish banking sector is still unsaturated when compared
with the Euro Area. Garanti Bank 231
• State-owned bank Ziraat is the leader in terms of total assets Akbank 219
with TL 271 billion, followed by İş Bank with TL 253 billion..
YapıKredi Bank 201
Source: TBB 0 100 200 300
* Non-consolidated balance sheet
Investment Support and Promotion Agency of Turkey 10Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The total asset size of participation banks was more than TL 113 billion as
of May 2015.
Asset Growth of Participation Banks Lending Growth of Participation Banks
120 5,2% 5% 80 5,40% 6%
100 4% 4,21% 5%
TL billion
60
TL Billion
80 2,4% 3% 4%
40 3%
60 2%
2%
40 1% 20
1%
20 0%
0 0%
0 -1%
Total Loans
Participation Bank Asset Size
Participation Banks' Asset/Total Assets Participation Banks' Loan/Total Loan
• The first Islamic banking applications in Turkey started in mid 1980’s. Albaraka Türk Finans Kurumu A.Ş. and Faisal
Finans Kurumu A.Ş. (known today as Türkiye Finans Katılım Bankası) were the first institutions that followed Islamic
banking principles. In 2005, these institutions were named participation banks and were allowed to conduct banking
activities under the scope of Islamic principles. Participation bank numbers in Turkey increased to five when Asya Katılım
Bank, Kuveyt Türk Katılım Bank and Ziraat started their operations.
• The total asset size of participation banks was more than TL 113 billion in May 2015, growing at an impressive CAGR of
28% since 2005. The share of participation banks in banking sector assets increased from 2.4 % in 2005 to 5.2% in
2015.
Investment Support and Promotion Agency of Turkey Source: TKBB 11
* As of May 2015Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Through the years, Turkish banking sector has attracted many foreign
investors in a marked increase of foreign ownership assets
Distribution of Banking Assets by Ownership
100% 4%
20% • As of September 2015, 32% of the banking assets
80% were owned by public banks, 48% by private
banks, 20% by foreign banks.
58%
60%
48% • The share of foreign banks in total assets increased
from just 4% in 2004 to 20% in 2015 while the
40% share of state owned bank decreased to 32% from
38%.
20% 38%
32%
• As of July 2015, there were 52 banks in Turkey.
0% There are a total of 34 savings banks, 13
2004 Sep-2015 development and investment banks and 5
participation banks.
State Private Turkish Shareholders Foreign Shareholders
Type of Banks, July 2015 • 5 of the deposit banks are state owned banks,
namely, Ziraat Bankası, Halk Bankası, Vakıflar
Bankası, Adabank and Birleşik Fon Bankası.
Deposit Banks 34
• Additionally, there are 4 state owned development
Dev. & Inv Banks 13 and investment banks, namely, İller Bankası,
Takasbank, Türkiye İhracat Kredi Bankası and
Türkiye Kalkınma Bankası
Participation Banks 5
Total 52 52
0 20 40 60 80 100
Investment Support and Promotion Agency of Turkey 12
Source: CBRT, BRSAInsurance and Consumer
Banking Leasing Factoring
Pension Financing
Turkey was effected slightly by the global economic crisis and loan
expansion continued to grow.
Banking Sector Loan-Deposit Growth
2.000
Assets Deposits Loans
1.600
TL Billion
1.200
800
400
0
2008 2009 2010 2011 2012 2013 2014
• Turkey’s loan to deposit ratio, which measures the liquidity of banks, has been increasing since 2009 and
reached 118% in 2014.
• Total loans increased by a stunning CAGR of 22% between 2008 and 2014.
Investment Support and Promotion Agency of Turkey Source: BRSA 13Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Total loans increased in the double digits surpassing TL 1,625 billion
Development of Non-Cash and Cash Loans in Total SME Loans
Turkey 350
1.600 300
TL Billion
250
TL Billion
1.200 CAGR
CAGR 200 24%
23%
150
800
100
50
400
0
0
Total Loans Extended to Medium Size Enterprises
Cash Loans Non-cash Loans Total Loans Extended to Micro Enterprises
Total Loans Extended to Small Enterprises
• Cash and non-cash loans increased at a of CAGR 23% from 2006 to 2014. Non-cash loans surpassed TL 384
billion as of end 2014, while cash loans were more than TL 1,241 billion.
• SMEs are the backbone of the Turkish economy. Turkish banks started funding SMEs at an increased rate from
2006. Total SME loan amounts increased at a CAGR of 24% during this period with more than TL 332 billion in
2014.
Investment Support and Promotion Agency of Turkey Source: BRSA, Note: SME is defined by BRSA as an entity that employs less than 250 14
workers and has TL 40 million or less total net sales or balance sheet sizeInsurance and Consumer
Banking Leasing Factoring
Pension Financing
Banks’ improved risk management decreased the NPL ratio to less than 3%.
Loan Breakdown in Turkey NPL Ratio in Banking
1.400 27% 30%
6%
1.200 5,27%
21% 25% 5%
1.000
20% 4%
800 2,85%
TL billion
15% 3%
600
10% 2%
400
5% 1%
200
0%
0 0%
2009 2010 2011 2012 2013 2014
2009 2010 2011 2012 2013 2014
Total Cash Loans SME Loans/ Total Cash Loans
Source: BRSA
Source: BRSA Note: Non-Performing Loans/Total Loans
• The total percentage of SME loans to total cash loans in Turkish banks increased to 27% in 2014 from 21% in
2009.
• Turkish banks have been affected slightly by the global economic crisis of 2009, and were able to maintain low
levels of NPL ratios. The NPL ratio of Turkish banks decreased to 2.85% as of end 2014. The main reason for
this decrease was due to the comprehensive risk management framework applied by the banks.
Investment Support and Promotion Agency of Turkey 15Insurance and Consumer
Banking Leasing Factoring
Pension Financing
New products offered by banks increased the amount of consumer loans.
Consumer Loan Breakdown by Type of Loan
400
350 Vehicle Loans
TL billion
300
CAGR
250 33% Credit Card
200 Risk
150 Consumer &
100 other Loans
50
Mortgage
0 Loans
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: BRSA
• Total consumer loans increased substantially with a CAGR of 33% from 2005 to 2014 exceeding TL 355 billion.
• The increase in different loan product categories offered by banks supported the increase in consumer loans.
Within this scope, the introduction of mortgage loans, which constitute more than 35% of total consumer loans,
reached to more than TL 125 billion with a CAGR of 28% from 2005 to 2014.
Investment Support and Promotion Agency of Turkey 16Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Turkey is fully committed to Basel III standards…
Total Capital Leverage
• Since July 2012, Turkey has begun fully
implementing Basel II standard of credit risk 10.5%
Basel III Basel III 3%
assessment.
• The technical requirements for Basel III are also 250
300
significant. The Basel III accords aim to strengthen bps
bps
the capital base of the banking sector, enhance risk
coverage, introduce an overall leverage ratio and Basel II 8% Basel II 0%
global liquidity risk standards and deal with
procyclicality.
• The new total capital ratio is set at 10.5%
0% 10% 20% 0% 5% 10%
consisting of 4.5% for common equity and 6% for
Tier 1 capital for Basel III. Source: Deloitte Analysis
• After Basel III, banks will maintain cash-like assets
Capital Adequacy Ratio in Turkey (%)
in the short term to adjust their liquidity ratios.
Furthermore, Basel III requires that banks report 28 26
their liquidity metrics on a daily basis. 23,7
24
• The Turkish banking sector has capital adequacy 20
ratios (CAR) above the regulator limits of BRSA, 15,3
which was 12%. Moreover, Turkey’s CAR exceeds 16
that of Basel II, which was 8% and Basel III, which Target: 12%
will gradually increase each year and will be set at 12
a total capital ratio of 10.5% by January 2019. 8
Legal Limit: 8%
4
Investment Support and Promotion Agency of Turkey Source: BRSA, * as of Oct 17Insurance and Consumer
Banking Leasing Factoring
Pension Financing
…and has even implemented a higher CAR than those set by
Basel III regulation.
Capital Adequacy Standard Ratio • Savings banks in Turkey had a CAR level of 14.9%,
65% 58,7% while participation banks and development and
investment banks had 14.1% and 31.3% capital
55% adequacy ratios, respectively.
45%
31,3% • Despite the global economic crisis and the
35%
Eurozone crisis, the high capital adequacy ratio of
25% 17,7% Turkish banks allowed them to achieve strong
14,9% financial statements. Hence, Turkish banks were
15%
only slightly effected by both crises. Moreover,
15,1% 14,1% Turkish banks are already prepared to meet the
5%
2010 2011 2012 2013 2014 2015* new capital requirements of Basel III.
Deposit Participation Dev & Inv
• The Basel Consensus has a place in the EU legal
Source: BRSA, as of March
acquis under the scope of financial services. The EU
aims to create compliance of the Basel Consensus
with the Capital Adequacy IV (CRD-IV) package.
The abovementioned package was put into force
on 1 January 2014 and consists of 2013/36/EU
Directive and (EU) 575/2013 legislation. Turkey is
in accordance with the EU regarding the calendar
for the implementation of the aforementioned
standards.
Investment Support and Promotion Agency of Turkey 18Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The solid capital structure of Turkish banks allowed the sector
to enjoy high profits.
140
Banking Sector Profit 30
Fees, Commissions and Banking Services
24,6
Income/Total Income (Percentage)
120 25
100 20,2 14%
15%
20
14%
14%
TL Billion
TL Billion
14%
80
13%
15 12%
13%
60
12%
10
12%
12%
12%
40
10%
20 5
0 0 8%
2009 2010 2011 2012 2013 2014
6%
Interest Income
Interest Expense 4%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Non-Interest Income (Expense)
Net Profit (RHS)
• The strong growth in the Turkish banking sector was also reflected in its profits exceeding TL 24 billion in 2014.
• The total interest income, which includes interest received from loans given, interest received from required reserves,
interest received from other banks and interest received from money market transactions increased over TL 139 billion.
• The banking sector not only benefits from increased income from interest but also from fees collected from other
banking activities. The share from fees, commissions and banking services is around 14%
Source: BRSA
Investment Support and Promotion Agency of Turkey 19Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The sector grew as a result of its strong asset quality and was able to
maintain high profits.
ROA Country Comparison ROE Country Comparison
4% 28%
UK
USA
2% 18%
France
Poland
1% 8%
Russia
-1% Turkey -2%
2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014
Source: IMF Financial Soundness Indicators
*The latest data available on France was from December 2013, UK was from June 2014 and for Poland was from September 2014.
Note: Numerator was annualized net income before extraordinary items and taxes, from the beginning of the year until the reporting month. Denominator was an average value of total assets
(financial and nonfinancial) over the same period.
• The Turkish banking sector’s return on asset (ROA) ratio was stronger than that of banks in major financial centers as
well as Eastern European countries. In 2014, ROA was 1.69% in Turkey.
• Moreover, return on equity was, again, well above that of the USA and Europe with 14.7% in 2014.
Investment Support and Promotion Agency of Turkey 20Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Turkey’s growing banking sector also resulted in the increase in the number
of bank branches.
Total Number of Bank Branches in Turkey
Including Foreign Branches, 2006-2014
• The total number of branches increased at a
12.000 11.986 21 CAGR of 7% between 2006 and 2014.
21
11.000 20,9 • The highest number of branches belongs to
20
20 commercial banks, followed by participation
10.000
19 banks and development banks.
9.000 17,9 19 • The per branch employee number decreased as
18 a result of the increasing trend towards
8.000
7.204 18 centralization of branch operations as well as
7.000 17 the increase in automated functions.
2006
2007
2008
2009
2010
2011
2012
2013
2014
# of Branch Employee per Branch (RHS)
Source: BRSA
Development of Cashpoints (ATMs) in Turkey,
2008-2014 • The development of the banking sector over
50.000 45576 recent years has affected the usage of
cashpoints. As of end 2014, there were a total
40.000 of 45,576 ATM cashpoints in Turkey.
30.000 • Between 2008 and 2014, the number of ATMs
21970 grew at a CAGR of 11%.
20.000
10.000
0
2008 2009 2010 2011 2012 2013 2014
Source: BKM
Investment Support and Promotion Agency of Turkey 21Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Banks also started focusing on alternative technologies that provide low
cost and faster transaction services.
Internet Banking Transaction Values Mobile Banking Transaction Values
3.000 250
Cash Cash
2.500 Transfers Transfers
200
Investments Investments
TL Million
2.000
TL Billion
150
1.500 Payments
Credit Cards
100
1.000
Credit Cards
Payments
500 50
Other
0 Other
0
2011 2012 2013 2014
Source: TBB Source: TBB
• The internet banking transaction value increased CAGR 22% between 2008 and 2014. Cash transfers had the
lions’ share in total internet banking transactions with 70% and increased impressively by a CAGR of 25% from
2008 to 2014. Notwithstanding the large share from cash transfers, the fastest growth was observed in
payments with a staggering growth performance.
• The mobile banking transaction values tripled annually since 2011 and exceeded 200 billioonin 2014. It is
noteworthy to mention the development of mobile phone users and the number of 3G phone subscribers. In
2014, the number of 3G phone subscribers increased by 20% exceeding 58.0 million. According to BMI, this
figure is expected to reach 70 million by 2017.
Investment Support and Promotion Agency of Turkey 22Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Transactions for both credit and debit cards have increased significantly.
Development of Credit Cards and Transaction • Turkey’s vibrant and growing economy had a
Volume, 2008-2014 positive impact on the development of credit and
500 60 debit cards, providing significant potential for
banks.
TL Billion
400
Million
40
300
• The number of credit cards in Turkey increased at a
200 CAGR of 5% between 2008 and 2014. And, a
20
100 staggering CAGR of 17% was realized during this
0 0 time in transaction volume reaching TL 474 billion
2009 2010 2011 2012 2013 2014 in 2014.
Transaction Volume
• The rapid development was also observed for debit
Total Number of Credit Cards (RHS)
cards. In 2014, transaction volume reached TL 418
Source: BKM
billion and the CAGR since 2008 was 18%.
Development of Debit Cards and Transaction
Volume, 2008-2014
500 150
400
TL Billion
Million
100
300
200
50
100
0 0
2008 2009 2010 2011 2012 2013 2014
Transaction Volume
Total Number of Debit Cards (secondary axis)
Source: BKM
Investment Support and Promotion Agency of Turkey 23Insurance and Consumer
Banking Leasing Factoring
Pension Financing
A Success Story: Odea Bank
• Odea Bank started its operations in Turkey in
"We hope to become one of the biggest banks in October 2012. Odea Bank is the first bank to
Turkey by 2017. Since our entrance into the receive a banking license in Turkey in the last 15
Turkish market in 2012, the Turkish economy years.
remained stable and showed significant growth • The bank had a very rapid growth and by end
despite the global economic environment. The 2014, Odea Bank’s total assets increased to TL
reforms made by the government and the 25.6 billion with 50% annual growth. The bank was
Banking Regulation and Supervision Agency ranked 15th among 45 banks (excluding
(BRSA) enhanced our performance." participation banks) in Turkey.
• 91.4% of the bank’s shares are owned by Bank
Hüseyin Özkaya, Director General of Odea Bank, Audi, a Lebanese group, which has banking
July 2013 operations in 11 countries in the region.
Source: Odea Bank
Investment Support and Promotion Agency of Turkey 24Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Financial Services Sector:
Selected Players
Iş Bank Garanti Bank Akbank Ziraat Bank
• Iş Bank was established in • Founded in 1946, • Established in 1948 in • Homeland Funds, the
1924 and is Turkey’s Garanti is Turkey’s Adana for cotton origin of Ziraat Bank,
largest private bank. second largest private growers, Akbank is was founded in 1863 to
bank with total assets owned by Sabancı support farmers and
• The bank’s shares are held
worth TL 231 billion as Holding and other agricultural
by the Işbank Pension
of March 2015. shareholders development.
Fund, the Republican
People’s Party and 32% of • Garanti is controlled by • Akbank provides • The Republic of Turkey
the shares were open to the Spanish bank BBVA, consumer, commercial, Prime Ministry Under
public. with Doğuş Holding SME, corporate and secretariat of the
having the minority private banking services Treasury is the sole
• Iş Bank’s total assets were
shares. as well as foreign owner of Ziraat Bank.
TL 253 billion for the first
exchange, foreign trade
quarter of 2015. • Garanti provides • Ziraat Bank is the
financing and treasury
integrated financial largest bank in Turkey
• Iş Bank’s products and transactions.
services in every and has the most
services include retail,
segment of banking and • The bank’s total assets extensive network.
corporate banking and
has subsidiaries for reached approximately
capital market operations • Ziraat Bank’s total
pension, life insurance, TL 220 billion as of
and other financial assets reached TL 271
factoring, leasing, March 2015.
services such as private billion as of March
brokerage and asset
pensions, insurance, asset 2015.
management on both
management, leasing and
national and
factoring.
international levels.
Source: ISO 500
Investment Support and Promotion Agency of Turkey 25Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Participation Banks:
Selected Players
Türkiye Finans Albaraka Kuveyt Türk
• Türkiye Finans was established • Established in 1984 by Albaraka • Kuveyt Türk started its activities in
in 1991 following the merger of Banking Group, Islamic Development 1989.
the companies Family Finans Bank and other investors; it is a
• It is owned by Kuwait Finance
and Anadolu Finans. pioneer in participation banking in
House, the Public Institution for
Turkey.
• It operates in credit Social Security of Kuwait, the
intermediation and related • Albaraka had TL 23.0 billion of total Turkish Directorate General of
activities. assets as of end 2014. Foundations and the Islamic
Development Bank.
• Türkiye Finans had assets worth • Albaraka Türk offers its customers
TL 33.5 by the end of 2014. participation accounts, personal and • Kuveyt Türk’s total assets were TL
corporate finance, leasing and 34 billion in 2014.
• The bank has retail, commercial
project-based profit and loss sharing
and SME banking services for • The bank’s main products are
services.
both national and international current and participation accounts,
customers. investment and saving accounts
and leasing.
Source: ISO 500
Investment Support and Promotion Agency of Turkey 26Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The premiums to GDP ratio in Turkey is low, demonstrating potential for
growth in the future years.
Total Premiums as a Percentage of GDP, Country Total Premium Growth as a Percentage of GDP in
Comparison, 2014 Turkey
Turkey 1,4% 1,55%
1,50% 1,40% 1,40%
1,29% 1,28% 1,33%
Ukraine 1,8%
Bulgaria 2,1%
1,00%
China 3,2%
India 3,3%
0,50%
Czech Republic 3,5%
Brazil 3,9%
0,00%
Spain 5,1% 2009 2010 2011 2012 2013 2014
Germany 6,5%
Italy 8,6%
Source: Swiss Re, Sigma, World Insurance in 2014
• Turkey’s total premiums as a percentage of GDP is 1.4%.
• The insurance market is still underpenetrated compared to peer countries and will provide significant potential
as new insurers set up shop and acquire a share of the relatively untapped Turkish market. Turkey has seen
strong economic growth fueled in part by a young and dynamic population that is increasingly in need of
financial products and services.
Investment Support and Promotion Agency of Turkey 27Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Turkey’s insurance sector asset size grew at a CAGR of 20%
between 2008 and 2014.
• There are a total of 63 insurance and retirement • The asset size of non-life insurance increased a
pension companies in Turkey of which 38 are non- stunning CAGR 25%, while the asset size of life
life insurance companies, 5 life insurance and 19 insurance and pension companies also reported a
pension companies and 1 reassurance company as significant increase of a CAGR of 14% during the
of 2014. same period.
Asset Size of Turkey’s Insurance Sector Growth of Premiums in Turkey
80 25 CAGR
16%
TL Billion
28 20
60
TL Billion
15
24
40 19
10 CAGR
16 12%
14 51
15 5
20 13 38
32
21 25
13 17 0
0 Life Non-Life
2008 2009 2010 2011 2012 2013 2014
Non-Life Insurance Companies
2009 2010 2011 2012 2013 2014
Life Insurance and Pension Companies
Source: TSB Source: TSB
• Total asset size increased at a CAGR of 20% • Life insurance premiums grew at CAGR of 12%
between 2008 and 2014 in the non-life and life between 2009 and 2014 to over TL 3,200 million,
insurance sector surpassing TL 79 billion in 2014. while non-life insurance grew at a CAGR of 17%
exceeding TL 22,700 million.
Investment Support and Promotion Agency of Turkey 28Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The premiums grew in every business line of insurance
between 2009 and 2014.
Breakdown of Premiums in 2014
Premium Written CAGR
Share in Total Premimum (TL Million) (2009-2014)
Land 21% 2,2 2,5 3,0 3,9 5,4 5,5 20%
Vehicles
Liability* • Premiums grew in every
business line in the
insurance sector
20% 2,7 3,1 3,8 4,5 5,0 5,1 14%
Land Vehicles between 2009 and
2014. The areas of
general losses, land
General 9% vehicles liability and
Losses 0,9 1,0 1,5 1,7 2,2 2,4 21%
health grew
considerably registering
Health 11% CAGRs of 21%, 20%
1,4 1,7 2,0 2,2 2,5 2,9 16% and 16%, respectively.
Fire and 15%
Forces of 1,9 2,0 2,3 2,6 3,3 3,8 15%
Nature
Life 13%
2009
1,8 2,2 2,7 2,7 3,4 3,3 12% 2010
2011
2012
Other Non-
2013
Life** 11% 1,4
1,61,92,0 20,8 22,7 15% 2014
Source: TSB
*Land vehicles liability insurance is compulsory. **Other non-life insurance includes accident, railway rolling stock, aircraft,
maritime, aircraft liability, general liability, credit, suretyship, financial losses, legal protection and assistance.
Investment Support and Promotion Agency of Turkey 29Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Banks are increasingly considering insurance products
for cross-selling opportunities.
Premium Distribution by Sales Channels • Insurance sales in Turkey are conducted via direct
sales, agencies, bancassurance and brokers.
100% • Total insurance sales reached about TL 26 billion in
9% 10% 9% 10% 10% 10% 11% 2014. 87% of these sales were non-life insurance
17% sales with more than TL 22.7 billion in sales, while
19% 22% 23% 23% 23% 23% the rest were life insurance sales with a total worth
of more than TL 3.3 billion.
50% • Agencies had the biggest share in total sales
65%
constituting 60% of total sales with more than TL
62% 60% 59% 60% 60% 60% 15 billion. The significant amount of sales is due to
the strong presence of agencies in Turkey. There
were more than 16,000 actively operating agencies
10%
as of 2014.
8% 9% 8% 7% 6% 6%
0%
• Agency sales are followed by bancassurance sales.
2008 2009 2010 2011 2012 2013 2014
Bancassurance grew from 17% to 23% from 2008
Direct Agency Bank assurance Broker to 2014, exceeding TL 5.8 billion in total sales.
Source: TSB
Investment Support and Promotion Agency of Turkey 30Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Allianz is the market leader in non-life insurance,
the life insurance market is dominated by Ziraat.
Non-Life Insurance Market Share, Written Premiums • Allianz was the leader in non-
life insurance market in terms of
Allianz Sigorta written premiums in 2014 with a
14% Axa Sigorta share of 14.2% after the
Anadolu Sigorta acquisition of Yapı Kredi Sigorta
in 2014. Axa and Anadolu
10%
Sigorta followed Allianz with
Ak Sigorta 13.5% and 13.2% market
6% shares, respectively.
• The large scale non-life
YapıKredi Sigorta* insurance companies (the top 5
2%
companies) represent 55% of
2008 2009 2010 2011 2012 2013 2014
total market as of December
Source: TSRB, * YapıKredi Sigorta and YapıKredi Emeklilik’s majority shares were acquired by Allianz in 2014. 2014.
Life Insurance Market Share, Written Premiums • Ziraat Hayat ve Emeklilik started
its operations in the life
30% insurance business in 2009. As of
25% 2010, Ziraat Hayat ve Emeklilik
Ziraat became the market leader in
20% terms of life insurance premiums
Anadolu and continued to be the leader
15% Garanti thanks to its large retail
Allianz (YapıKredi*)
10% customer base and branch
Halk Hayat
network. Ziraat Hayat ve
5%
Emeklilik had a share of 18.5%
0% in 2014, followed by Anadolu
2008 2009 2010 2011 2012 2013 2014 Hayat ve Emeklilik with 11% and
Alianz with 10%.
Source: TSRB
Investment Support and Promotion Agency of Turkey 31Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The government will fund 25% of a participant’s monthly contribution in
order to promote savings.
• In October 2001, private pension plans were established in Turkey after the enactment of Law No. 4632 -
Private Pension Plans Savings and Investment System. The objective of the new pension regulation can be
described as follows:
• Increase the savings behavior of the population with the new tax and financial incentives
• Involve and integrate the non-working population into the system
• Decrease the lapse issue within the system
Government Grants and Advantages Major Conditions for the Individual Pension Plans
• The government will contribute 25% of the monthly • A minimum 10 years in the system
participant contribution into a separate pension • A minimum retirement age of 56
contract. The government’s annual contribution will
be up to 25% of the gross annual minimum wage. • No more requirement of minimum 10 years of
contribution payment
• The participant is eligible for the pension fund with
the following terms: • Participants can switch funds 6 times and pension
plans 4 times a year
• 0-3 years of participation (0% of the fund)
• Once the participant retires, he/she can claim the
• 3-6 years of participation (15% of the fund) amount via three different means (i.e., total
payment of asset under management, installed
• 6-10 years of participation (35% of the fund) repayment, and annuity contract)
• A contract is signed when the first contribution
• 10 years of participation and before the age of amount is transferred into the company’s account.
56 (60% of the fund)
• The participant has the right to withdraw the money
• 10 years of participation and after the age of 56 in the fund up to 60 days after the contact has been
(retirement), death and disability (100% of the signed.
fund) • There is gradual tax on net return instead of
accumulated value. Pricing is based on the riskiness
of the pension fund.
Source: EGM
Investment Support and Promotion Agency of Turkey 32Insurance and Consumer
Banking Leasing Factoring
Pension Financing
In 2014, the size of the Turkish pension funds relative to GDP was
doubled over the past 5 years.
Pension Funds Relative to the Size of the Economy Pension Funds Relative to the Size of the Economy
(as Percentage of GDP), 2014 (as Percentage of GDP) in Turkey
6% 5,5%
France 0,5%
4,9%
Hungary 5%
4,1%
3.8%
Turkey 5,5% 4%
Germany 6,7% 3%
2.3% 2.2%
Czech Republic 8,0%
2%
Poland 8,8%
1%
Spain 9,5%
USA 83,0% 0%
2010 2011 2012 2013 2014
UK 96,0%
Source: OECD
Netherlands 159,3%
0% 50% 100% 150% 200%
Source: OECD
• Pension funds in the world’s developed and developing countries play a crucial role in the economy since they
provide long term funds to the market.
• In 2014, the ratio of pension funds to GDP in Turkey was 5.5%, an increase from 2.3% in 2010. The figure is
still significantly lower than major OECD countries. However, there is great potential for the market because of
the government’s promotion of savings plans to the general population.
Investment Support and Promotion Agency of Turkey 33Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Gross national savings make up 14.4% of Turkey’s GDP and is expected
to reach about 16% in the short term.
Gross National Savings Percentage of GDP, 2014 Turkey’s Gross National Savings
Percentage of GDP Growth
UK 11,9 17%
16,0%
Turkey 14,4 16%
Brazil 15,6 15% 14,4%
18,4 14%
Italy 13,3%
13%
US 18,8
12%
Poland 18,9
11%
Spain 20,3 2010 2011 2012 2013 2014 2015f 2016f
France 21,2 Source: IMF
f: forecast
Germany 26,7
• Gross national savings as a percentage of GDP was
India 30,2 14.4% in 2014, which is relatively lower than other
countries.
Source: IMF
Note: Gross national savings is expressed by the IMF as gross disposable income less • The Turkish government is trying to increase
final consumption expenditure after taking into account an adjustment for pension
funds. For many countries, the estimates of national saving are built up from national
savings by enhancing the private pension system
accounts data on gross domestic investment and from balance of payments-based data and generally raising awareness and promoting
on net foreign investment
household savings. Thus, the government aims to
increase the savings to 17% by 2018.
Investment Support and Promotion Agency of Turkey 34Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Both AUM and contribution amounts had rapid growth since 2006 with a
CAGR of 37% and 35%, respectively.
Pension Funds (AUM) and Contribution Growth Number of Participants/Contracts in Pension
Funds
40 7 1,14 1,16
Assets Under Management (AUM)
6 1,14
30 Accumulated Total Contribution 5 1,12
Million
TL Billion
4 1,10
20 3 1,06 1,08
2 1,06
10 1 1,04
0 1,02
0
Number of Contracts
Number of Participants
Contract per Participant (RHS)
Source: EGM Source: EGM
• The number of participants in Turkey’s pension funds increased at a CAGR of 21% between 2006 and 2014,
while total contributions increased at a CAGR of 35% during the same period.
• As of 2014, total contributions reached TL 28.3 billion, which is a staggering 30% increase from the previous
year. This increase was due to the new pension regulation, in which the government funds 25% of the monthly
contribution.
• According to the Pension Monitoring Center’s Private Pension Development Report 2014, the total number of
contracts increased to 5.8 million with 5.1 million participants. The assets under management exceeded TL 34
billion.
Investment Support and Promotion Agency of Turkey 35Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The top 4 pension funds constituted 73% of the market.
Pension Funds (AUM) Share, 2014 Market Share in terms of Number of Participants,
2014
14% Allianz
AvivaSA
Allianz 14%
19%
Other; 17% Anadolu
27%
AvivaSA; 17% Garanti Emeklilik ve
19% Anadolu Hayat
Hayat ve
Garanti Emeklilik;
Emeklilik; 19% Other
38%
16%
Source: EGM 2014
• Allianz Yaşam ve Emeklilik is the market leader in the pension fund sector in terms of assets under
management. However, it is not the market leader in terms of number of participants.
• Garanti Emeklilik ve Hayat and Anadolu Hayat ve Emeklilik has the highest share in terms of number of
participants with 17% as 2014.
Investment Support and Promotion Agency of Turkey 36Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Non-Life Insurance Sector:
Selected Players
AXA Sigorta Allianz Sigorta Anadolu Sigorta Güneş Sigorta
• French insurance giant • In 1988, the German • Anadolu Sigorta was • Güneş Sigorta was
Axa entered the company Allianz along founded in 1925 by İş established in 1957.
Turkish insurance with Tokio Marine Bank.
• Vakıf Emeklilik owns
market in 1995 under Insurance from Japan
• 57% of the company is 36% of Güneş Sigorta
the name Axa Oyak bought shares of Şark
owned by Milli and Groupama, one of
Life Insurance. Sigorta operating
Reasürans T.A.Ş. and the leading insurance
under Koç Holding.
• In 2008, AXA bought the rest is publicly companies in France,
Oyak’s shares. • Allianz owns 96.2% of listed. owns 36%. The rest of
the life insurance the shares are owned
• 93% of the shares of • In 2014, Anadolu
shares of the company. by the Retirement
the company belong to Sigorta’s non-life
The other 3.8% is held Foundation of
Axa Holding A.Ş., 7% premium equaled TL
by Tokio Marine. Vakıfbank’s personnel
to Ziraat Bank and the 3.0 billion with a non-
and the public.
rest to smaller • TL 3.2 billion was made life technical income of
stakeholders. by Allianz from non-life TL 2.4 billion. • It had more than TL
insurance premiums in 1.2 billion non-life
• In 2014, Axa Sigorta’s
2014 and a total non- premiums in 2014.
total non-life premium
life technical income of Güneş Sigorta’s non-
amounted to more
more than TL 2.9 life technical income
than TL 3.1 billion with
billion. exceeded TL 700
a non-life technical
million.
income of more than • Allianz acquired Yapı
TL 2.9 billion. Kredi Sigorta in 2014.
Source: TSB and Company websites
Investment Support and Promotion Agency of Turkey 37Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Life Insurance Sector:
Selected Players
NN HAYAT ve GARANTI EMEKLILIK ANADOLU HAYAT ve AvivaSA Emeklilik ve
EMEKLILIK ve HAYAT EMEKLILIK Hayat
• Oyak Emeklilik A.Ş., • Garanti Emeklilik ve • Anadolu Hayat Emeklilik • AvivaSA was
was founded in 2003. Hayat began its was founded in 1990 established in 2007 with
operations in 2002. and is Turkey’s only approximately 50%
• Dutch financial services
publicly listed insurance percent of its shares
group ING acquired the • 85% of Garanti Hayat
company. divided between
company in 2007. ve Emeklilik’s shares
Sabancı Holding and
are owned by Garanti • 62% of the company‘s
• Oyak Emeklilik’s name Aviva.
Bank, the remaining are shares are owned by Iş
changed to ING Emeklilik
owned by Dutch Bank, 20% by Anadolu • Aviva is a global
in 2009.
insurance company Sigorta, 17% is open to insurance company
• The company was Achmea. public and less than 1% headquartered in Britain
renamed NN Emeklilik in is held by Milli with over 50 million
• Garanti Emeklilik ve
February 2015. Reasürans T.A.Ş. customers.
Hayat’s total assets
•NN Continental Europe under management was • In 2014, the company’s • AvivaSA had TL 6.5
Holding BV owns the more than TL 5.6 billion asset under billion asset under
company in 2014. management totaled TL management in 2014.
•ING Emeklilik’s total 6.8 billion.
assets under
management in 2014
reached TL 1.6 billion.
Source: TSB and Company websites
Investment Support and Promotion Agency of Turkey 38Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Financial leasing assets grew at a CAGR of 13% between 2007 and 2014.
Financial Leasing Transaction Volume, 2014 Financial Leasing Asset Size Growth in Turkey
80 35% 36 1,2%
70 30% 32
60
USD Billion
25% 28
50
20% 24 0,8%
TL Billion
40
15% 20
30
20 10% 16
10 5% 12 0,4%
0 0% 8
4
0 0,0%
Transaction Volume Penetration (RHS) Leasing Asset Size Leasing Volume/GDP (RHS)
Source: FKB Source: FKB
• Turkey’s leasing transaction volume reached USD 7.6 billion in 2014, which is a 10% increase from the previous
year. Despite the huge year-over-year growth Turkey’s leasing sector is still underpenetrated but significant
upside potential as leasing asset size grows.
• The total asset size grew at an impressive CAGR of 13% from 2007 to 2014 to more than TL 32.5 billion.
• Furthermore, participation banks in Turkey can also conduct financial leasing operations on tangible items.
Investment Support and Promotion Agency of Turkey 39Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Real estate had the highest share in financial leasing with 29% in 2014.
Financial Leasing Receivables in Turkey Financial Leasing Investment Amount by Product
Type, 2014 Real Estate
24.000 9%
8% Construction Equipment
20.000
TL Million
7%
16.000 6% Machinery and
16% Equipment
5% 3%
12.000 Metal Processing
4% 29%
8.000 3% Textile Equipment
7%
2%
4.000 Medical Equipment
1% 7%
0 0%
Other
2008 2009 2010 2011 2012 2013 2014 20%
18%
Leasing Receivables NPL (RHS)
Source: BRSA
Source: FİDER, İş Leasing
• The Turkish government promotes financial leasing operations. As of December 2011, it reduced the VAT
applied for leasing operations to 1% for leasers that have investment incentive documents. The items that can
be leased include steam boilers, steam turbines, concrete pumps and centrifuges among other items. In light of
this support, financial leasing receivables steadily increased.
• Financial leasing receivables increased at CAGR of 6.6% between 2008 and 2014 exceeding TL 20 billion in
2014.
• Leasing of construction equipment had the highest share in terms of investment amount with 29%, followed by
machinery and other equipment with 20%.
Investment Support and Promotion Agency of Turkey 40Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Leasing Sector Operational Figures
Leasing Sector Operational Figures
2010 2011 2012 2013 2014
Number of
16 17 18 32 29
Branches
Number of
69 72 75 117 138
Agencies
Number of
1,286 1,217 1,258 1,361 1,458
Personnel
Number of
50,428 43,294 45,089 46,752 52,041
Clients
Number of
10,186 14,648 17,787 19,790 20,302
Contracts
Source: FKB
• The leasing sector in Turkey makes up a significant part of the non-banking sector with 20,302 contracts in
2014.
• In 2014, the number of skilled personnel in the leasing sector was 1,458 and the total number of clients was
52,041.
• With 138 different agencies all across Turkey, leasing companies provide necessary services to their clients.
Investment Support and Promotion Agency of Turkey 41Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The leasing sector is a promising one with 20% growth in revenues in
2014 compared to 2013.
Leasing Revenues and Net Profits/Loss, 2008-
2014
2.500 700
600
2.000
• Revenues in the leasing sector in Turkey have been
500 increasing since 2009.
TL Million
TL Million
1.500
400
• As of 2014, leasing revenues were TL 2,179 million,
300
1.000 which corresponds to a 20% increase compared to
the previous year and 170% increase compared to
200
2009.
500
100
• Net profit increased from TL 451 million to TL 526
0 0
million in 2014.
Leasing Revenues Net Profit/Loss (RHS)
Source: FKB, BRSA
Investment Support and Promotion Agency of Turkey 42Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Leasing Sector:
Selected Players
BNP PARIBAS SIEMENS AG GARANTI YATIRIM
Leasing Solutions Leasing Leasing Leasing
• BNP Paribas Leasing • Siemens Finansal • Garanti Leasing was • Yatırım Leasing was
Solutions, a global leader Kiralama A.Ş. was founded in 1990. founded in 1993. It
in financial services, established in 1997 by joined TETAŞ Group in
• It uses Garanti Bank
signed a cooperation Siemens AG Leasing, 2004. The company
branches as a distribution
agreement with TEB which has offices in offers its clients
channel. In 2007, Garanti
Leasing in 2005. more than 20 countries. investment services in
Leasing founded Garanti
different sizes and
• In 2009, BNP acquired • Siemens leases printing Fleet.
terms and consultancy
Fortis Leasing. machines, textile,
• Garanti Leasing aims to to promote leasing
tourism and office
• TEB Leasing and Fortis become the first Turkish activities in Turkey.
equipment, transport
Leasing then merged leasing company to open
vehicles, computers and • Yatırım Leasing
under the umbrella of offices overseas.
software, cranes and provides financing for
BNP Paribas Finansal
construction machinery, • Business premises, real capital such as medical
Kiralama A.Ş. in 2011.
power stations and estate, medical and office and construction
• BNP leases medical and communication and equipment, construction, equipment, press and
data processing security systems. textile and manufacturing packaging, appliances
equipment, energy machinery can be leased for metals and textile
facilities, transport from Garanti Leasing. sectors.
vehicles, construction
• Garanti Leasing’s total • The company’s total
machinery and real
assets in 2014 amounted assets were TL 97.770
estate. Its total assets in
to TL 4.1 million. million in 2014.
2014 was TL 2.0 million.
Source: Company Websites
Investment Support and Promotion Agency of Turkey 43Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The assets in the factoring sector in Turkey have been increasing
significantly, reaching TL 26.4 billion in 2014.
Total Asset Development of the Factoring Factoring Sector Selected Financial Indicators,
Sector in Turkey, 2008-2014 2011-2014
27 CAGR 26,4 TL Billion 2011 2012 2013 2014
23%
22 Receivables 14.2 16.3 20.1 24.7
17 NPLs (%) 4% 5% 4.9% 4.5%
TL Billion
Reserves 0.4 0.7 0.8 0.9
12
7,8 Banks 0.5 0.7 0.6 0.4
7
Credit 11.5 12.8 15.5 18.4
2
SE Equity 3.4 3.9 4.0 4.4
-3
• In Turkey, factoring was introduced in 1988 to support manufacturers’ export activities. One of the major advantages
of factoring is its ability to provide companies with immediate cash flow for their accounts receivable.
• The total assets in factoring sector reached TL 26.4 billion in 2014, which accounts for a 21% increase compared to the
previous year.
• It is also observed that between 2008 and 2014 total assets grew at a staggering CAGR of 23%.
• Receivables in the sector grew by 74% compared to 2011 and non-performing loans decreased from 5% in 2012 to
4.5% in 2014.
Investment Support and Promotion Agency of Turkey 44
Source: CBRTInsurance and Consumer
Banking Leasing Factoring
Pension Financing
Factoring revenues increased by 35% in 2014 demonstrating a vast
potential in the sector.
Factoring Revenues and Net Profit, 2008-2014 • The revenue and net profit of the factoring sector
have been increasing since 2009.
3,5 3,3 0,7
• Compared to 2009, factoring revenues increased
3 0,6 41% reaching TL 3,270 million in 2014.
2,5 0,5
TL billion
TL billion
2 0,4 • The net profits in factoring reached TL 624 million
1,8
in 2014, an increase of 25% compared to the
1,5 0,3 previous year.
1 0,2
0,5 0,1
0 0,0
Factoring Revenues Net Profit (RHS)
Source: BRSA
Investment Support and Promotion Agency of Turkey 45Insurance and Consumer
Banking Leasing Factoring
Pension Financing
The total numbers of clients and contracts have been increasing in the
factoring sector demonstrating its high service potential.
Factoring Sector Operational Figures
2009 2010 2011 2012 2013
Number of
26 28 25 62 319
Branches
Number of
116 175 218 185 --
Agencies
Number of
2,959 3,557 3,819 4,186 4,650
Personnel
Number of
40,997 57,094 66,468 67,054 --
Clients
Number of
65,952 89,516 91,029 84,769 --
Contracts
Source: BRSA
• The table above provides some of the most crucial operational figures of the factoring sector. The sector
continued its growth between 2009 and 2013 in almost every operational activity.
• For example, the number of branches in the factoring sector increased from 26 in 2009 to 319 in 2013. This
also resulted in the increase of highly skilled personnel in this field reaching a total of 4,650, which is a 57%
increase compared to 2009.
Investment Support and Promotion Agency of Turkey 46Insurance and Consumer
Banking Leasing Factoring
Pension Financing
Factoring Sector:
Selected Players
Garanti Factoring YapıKredi Factoring TEB Factoring
• Garanti Factoring was • YapıKredi Factoring was • TEB Factoring was established in
established in 1990 in order to established in 1999. Turkey in 1997.
provide factoring services to
• The company provides services to • The company provides factoring
industrial and commercial
commercial companies and more services domestically and
companies.
than 90% of its customer base is internationally.
• Garanti Factoring open edits small and medium size
• Since 1998, TEB Factoring is a
shares to the public in 1993 enterprises.
member of the Factors Chain
and is traded on Borsa Istanbul.
• YapıKredi Factoring is an active International.
• The company currently has 21 member of both the Factoring
• The total assets of TEB Factoring
branches in 14 cities of Turkey. Association and Factors Chain
in 2014 amounted to TL 1,355
International (FCI).
• The total assets of the company million.
were TL 2,989 million in 2014. • In 2014, the total assets of
YapıKredi Factoring were TL 2,813
million.
Source: Company Websites
Investment Support and Promotion Agency of Turkey 47You can also read
