Akbank
After the banking crisis of 2001, the major banks bounced back in 2002 and strengthened yet again in 2003 with Akbank leading the charge. In 2003, Akbank boosted net profits by 95%, provided a very healthy 35% return on equity and ended the year with the highest market share of 13.1% in total loans, thereby retaining the bank of the year award in Turkey. Akbank achieved unprecedented increases in all major products in 2003, with consumer loans, commercial (SME) loans, credit card loans and mutual funds recording annual increases of 236%, 198%, 97% and 117% respectively. Akbank has introduced a total renovation of its infrastructure processes, enabling customisation of its customer delivery channels. The bank claims to be the only private blue chip bank with free capital of $4bn, which gives it a competitive edge in pricing and allows it to grow more aggressively than its competitors. “In 2003, Akbank posted the highest profit ever in the history of the sector, as well as becoming the biggest creditor among the private banks in Turkey,” says chief executive Zafer Kurtal. “The underlying reasons behind this remarkable performance are the bank’s low cost of funding, which is made possible by a stable deposit base and an unparalleled free equity, and its core banking focus. Akbank has been the first bank in Turkey in divesting its non-financial equity participations, raising around $500m since 1998.”
