Development and Investment Bank of Türkiye Focuses on Growth in Its 45th Year

Having entered a transformation process to use investment banking products and capital-markets instruments more effectively alongside its development-finance mission, and having relocated its management centre to Istanbul, Development and Investment Bank of Türkiye shared its nine-month financial results and objectives for the new period at a press conference. Detailed information on the Bank’s areas of activity was presented at the meeting, attended by TKYB CEO İbrahim Öztop and Executive Vice Presidents Özgür Maraş, Özlem Cinemre, Satı Balcı, Seçil Yıldız, Ufuk Bala Yücel and Zekai Işıldar.

Supporting investments aimed at localisation, increasing exports and expanding the economy in line with Türkiye’s development objectives, Development and Investment Bank of Türkiye will strengthen the investment banking and advisory services added through its transformation and contribute to the deepening of capital markets. Through Türkiye Development Fund and its sub-funds, which have also been added to the Bank’s services, the Bank aims particularly to develop the entrepreneurial ecosystem by investing in sectors that play an important role in the country’s growth and in new-generation ventures.

Profit Increases through a Focus on Development Finance

Focusing on growth to support more sustainable-development projects, the Bank began to see the positive results of its transformation in its first nine-month results. As of September 2019, the Bank’s assets reached TRY 18.5 billion, representing growth of 12.8% compared with the same period of the previous year and 17.5% compared with year-end 2018.

Loans, which accounted for 78.3% of total assets, reached TRY 14.5 billion in September 2019, while loan volume increased by 6% compared with year-end 2018. The ratio of gross non-performing loans to total loans, an important indicator of asset quality, declined by 0.1 percentage points year-on-year to 0.8% in the third quarter of 2019. The Bank’s capital adequacy ratio increased by 58% in the third quarter, rising above the sector average to 22.4%.

As of September 2019, net interest income increased by 76.8% year-on-year to TRY 549.2 million, while operating income rose by 89.2% to TRY 603.4 million. Development and Investment Bank of Türkiye recorded nine-month profit of TRY 359.7 million.

“We Want to Create Value for Tomorrow”

Emphasising the Bank’s contribution to the Turkish economy, TKYB CEO İbrahim Öztop provided information on its transformation. Describing Development and Investment Bank of Türkiye as a 45-year-old “brand-new” bank, Öztop said: “Our Bank was established in 1975. We work to finance projects that serve Türkiye’s sustainable development. We have structured ourselves to contribute to our country’s long-term strategies in line with its sustainable-development objectives. In 2018, our Bank’s scope of activity was expanded to include investment banking. In accordance with this new mission, we relocated our headquarters to Istanbul in June 2019. We formed a new team by bringing together colleagues who carry our institutional memory and wished to continue the journey in Istanbul with professionals experienced in the banking sector.”

Stating that the Bank worked to contribute to structural transformation and the broader distribution of capital in line with Türkiye’s sustainable-development priorities by meeting investors’ financing and advisory needs, Öztop continued:

“Our primary objective is to achieve sustainable development in accordance with our values and create value for tomorrow. We define our mission as creating value for our employees and all other stakeholders through a dynamic, innovative banking approach that is sensitive to the environment and society. Through the loans, equity support, partnerships and advisory services we will offer to all companies contributing to our country—from start-ups and industrial enterprises to SMEs—we will continue supporting development to the fullest extent.”

Development Banking Should Have a Greater Place in the System

Stating that the Bank operated in three core areas—development banking, investment banking and Türkiye Development Fund—İbrahim Öztop said: “We continue financing sustainable-development projects, which constitute our principal function.” Noting that the Bank had provided long-term financing across numerous fields, from industry and tourism to the services sector and sustainable-energy projects, Öztop continued:

“We carry out every stage—from the selection criteria for projects to their processing and assessment—with great diligence and advance our work through detailed reporting provided both to our financiers and to project managers. Our primary objective is to support every sector that contributes to the country’s development under Türkiye’s 11th Development Plan, reduces imports and increases exports. Development banking focuses on economic growth rather than profit. Looking at advanced economies around the world, one sees how large a place development banks occupy within their systems. They use this strength to support the sustainable growth of their national economies. Particularly in many Western countries, development banks support investments on a much greater scale than in our country. As Development and Investment Bank of Türkiye, our objective is to grow our Bank and finance more projects supporting sustainable development.”

“We Will Be Active in Investment Banking”

Providing information on the Bank’s investment banking activities, Öztop said: “We have formed an experienced and highly capable team that understands the dynamics and intricacies of both Türkiye’s and international capital markets. We have structured ourselves to become one of the market’s active players with a diversified product range. Through mergers and acquisitions, capital-markets products and financial advisory services, we aim to play a leading role in enabling businesses to access domestic and international funding sources. Our objectives also include becoming an active player in developing innovative capital-markets products, deepening our capital markets and broadening the investor base. Within this framework, we established an Asset Finance Fund to intermediate securitisation transactions and completed asset-backed securities issuances totalling TRY 4.15 billion—the first in December 2018 and the second in the first quarter of 2019. In the coming period, we will play an active role particularly in securitisation, public offerings, financial advisory and feasibility advisory services.”

Development Fund to Support Entrepreneurs and Industrial Companies

Providing information on Türkiye Development Fund, which was then being established, İbrahim Öztop stated that the Bank would support both technology-intensive new-generation ventures and companies contributing to industrial growth through the Development Fund and its sub-funds. Öztop added that regional companies that were small but had growth potential were also among the investment targets. “Through Türkiye Development Fund and its sub-funds, we will invest in sectors that play an important role in our country’s growth and in new-generation ventures, becoming one of the leading players particularly in the development of the entrepreneurial ecosystem,” he said.

Commitment to International Standards in Sustainable Development

Development and Investment Bank of Türkiye operates in accordance with the United Nations Sustainable Development Goals, which focus on areas such as clean water, clean energy, climate change, and the protection of life below water and on land. As a signatory to the UN Global Compact, the Bank became a founding signatory of the Principles for Responsible Banking established by the United Nations Environment Programme Finance Initiative (UNEP FI), once again confirming its support for sustainability as a core component of its development approach. The Bank is also a member of the Business Council for Sustainable Development Türkiye, the regional network and partner of the World Business Council for Sustainable Development (WBCSD) in Türkiye.

Development and Investment Bank of Türkiye

Since 1975, Development and Investment Bank of Türkiye has supported development initiatives in every area needed by Türkiye. Drawing on its strong international standing and the resources it secures, it supports competitive and efficient production for a stable and robust economy.

In line with the 2023 objectives, guided by the 11th Development Plan and the United Nations Sustainable Development Goals, the Bank focuses on financing sustainable development. With experienced and specialised human resources possessing command of global banking standards, a dynamic structure, and innovative products and services, it will continue to stand by investors.