Akbank

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Akbank T.A.Ş.
Type Anonim şirket
Traded as BİST: AKBNK
Industry Banking, Financial services
Founded 30 January 1948
Headquarters Istanbul, Turkey
Area served Worldwide
Key people Suzan Sabancı Dinçer (Chairman)[1]
Hakan Binbaşgil (CEO)[2]
Products Financial Services, credit cards, consumer banking, corporate banking, investment banking, mortgage loans, private banking
Revenue Increase Turkish lira symbol 8x10px.png 11.892 billion (2013)[3]
Operating income Decrease Turkish lira symbol 8x10px.png 4.064 billion (2013)[3]
Net income Decrease Turkish lira symbol 8x10px.png 3.077 billion (2013)[3]
Total assets Increase Turkish lira symbol 8x10px.png 198.482 billion (2013)[3]
Total equity Increase Turkish lira symbol 8x10px.png 22.135 billion (2013[3]
Employees 16,500 [3]
Subsidiaries
Website www.akbank.com.tr

Akbank is one of the largest banks in Turkey. Founded in 1948, it had revenues of nearly TL10bn in 2011.[5] Listed on the Borsa Istanbul, it is 9.9% owned by the US Citigroup,[6] as well as by members of the Sabancı family.

Akbank has ranked as "The Most Valuable Banking Brand in Turkey" according to the "Brand Finance - Banking 500, 2014" report for the third time in a row. Akbank also achieved a significant success by ranking as the 94th most valuable banking brand in the report that comprises the most valuable global banking brands.[7]

History[edit]

Akbank was founded in Adana, Turkey on January 1948, originally to provide financing for the cotton producers in the Çukurova region. As the majority of the bank founders were born in the city of Kayseri, the name "Adana-Kayseri Bankası" was chosen, soon to be shortened to its initials AK or Akbank.[8] The founders were Hacı Ömer Sabancı, the industrialist brothers Ahmet Sapmaz and Bekir Sapmaz and the four owners of the Adana textile business Milli Mensucat; Nuh Naci Yazgan, Nuri Has, Mustafa Özgür and Seyit Tekin. This group had an 80% shareholding with the remaining 20% offered to investors in Adana and Istanbul. Opening with a single branch in a corner of Adana Akbank grew and developed quickly, opening its first branch in Istanbul in the district of Sirkeci on July 14, 1950, and moving its headquarters to Istanbul in 1954. The original founders ran the bank until 1962 when it was taken over by Sabancı family. 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 completed the strategic partnership agreement according to which Citigroup acquired a 20% equity stake in Akbank for approximately US$ 3.1 billion (TRL 0.095 per share).

In 2008 Akbank in collaboration with Boyner Holding introduced "Fish", a credit card which offers an array of different services and products.[clarification needed] In 2008, apart from Boyner, Akbank also signed a partnership agreement[clarification needed] with Carrefour SA. Additionally, Akbank introduced new services such as Wings Business Card,[clarification needed] Citi Axess,[clarification needed] ATMCredit[clarification needed] and Multimedia POS to its customers.

As of 31 December 2010, Akbank reported a consolidated net profit of TRY 3,010 million (US$ 1,958 million) and total consolidated assets of TRY 120,070 million (US$ 78,089 million). The consolidated capital adequacy ratio of Akbank, standing at approx 20% is among the highest ratios achieved in the sector.[5]

In 2010, Akbank continued to raise funds from international markets with the total of such resources reaching US$ 8,0 million by the end of the year.

In 2013, Citigroup sold a 10.1 percent% stake in Akbank as part of a move to prepare for Basel III rule and technical reasons related to Citibank. Following the transaction, Citigroup’s stake in Akbank has remained at 9.9%.[9]

Overview[edit]

As of the end of 2008, Akbank ranked [7] 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.[7]

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.

With its domestic distribution network that includes over 985 branches and around 16,500 employees,[10] Akbank operates from its headquarters in Istanbul and 20 regional directorates around Turkey. Akbank provides services not only through 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, 4,100 ATM's, 340,000 POS terminals as well as the latest technology channels such as cell phones, and loan machines.[clarification needed] Additionally, Free[clarification needed] Banking Areas have been set up inside branches in which customers have access to Internet and telephone banking services. Akbank AG in Germany, Akbank Dubai Limited in UAE, as well as a branch in Malta, carry out Akbank's overseas operations.

Akbank is listed on the Istanbul Stock Exchange (ISE) where approx. 25% of its shares are publicly traded meanwhile, Level 1 Depositary Receipts of the Bank are traded on the OTC market in the US. Akbank shares constitute 8% of the total ISE market capitalization and 20% of the total market capitalization of banks listed on ISE as of September,2010.

Akbank has been conducting overseas activities through its subsidiaries in Germany (Akbank A.G.), Dubai (Akbank Dubai Limited) and a branch in Malta.

Management Board & Group Executive Committee[edit]

Board of Directors Executive Management
Name Since Position Name Since Position
Suzan Sabancı Dinçer 2008 Chairman and Executive Board Member Hakan Binbaşgil 2012 CEO and Board Member
Erol Sabancı 2008 Honorary Chairman and Consultant to the Board - Board Member Kerim Rota 2010 Executive Vice President - Treasury
Hayri Çulhacı 2010 Vice Chairman & Executive Board Member K. Atıl Özus 2007 Executive Vice President - CFO
Cem Mengi 2014 Executive Board Member Mehmet Sindel 2010 Executive Vice President - Payment Systems
Özen Göksel 2011 Executive Board Member Saltık Galatalı 2011 Executive Vice President - Private Banking
James Charles Cowles 2013 Board Member Kaan Gür 2011 Executive Vice President - Commercial Banking
Yaman Törüner 1998 Board Member Ahmet Fuat Ayla 2007 Executive Vice President - Credits
Aykut Demiray 2012 Board Member Hülya Kefeli 2007 Executive Vice President - International Banking
Kaan Terzioğlu 2012 Board Member A. Galip Tözge 2007 Executive Vice President - Consumer Banking
Hakan Binbaşgil 2012 Board Member Alper Hakan Yüksel 2011 Executive Vice President - Corporate Banking
Eyüp Engin 2007 Head of Internal Audit Burcu Civelek Yüce 2014 Executive Vice President - Human Resources and Strategy
Turgut Güney 2011 Executive Vice President - Information Technology
Orkun Oğuz 2013 Executive Vice President - Direct Banking
Bülent Oğuz 2011 Executive Vice President - SME Banking
Özlen Sanıbelli 2011 Executive Vice President - Operation

Recent strategic alliances and acquisitions[edit]

Citigroup and Akbank announced that, following receipt of all required regulatory approvals, the parties have 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.

In 2013, Citigroup sold its 10.1% stake in Akbank.

Principal subsidiaries[edit]

  • Ak Asset Management
  • Ak Lease
  • Ak Investment
  • Akbank AG
  • Akbank Dubai Limited

International Awards[edit]

  • The Banker: Best Bank of the Year in Turkey (2006)[citation needed]
  • Euromoney: Best Private Banking in Turkey (2006)[citation needed]
  • Akbank is highly commended in the Banker Technology Awards 2006 for Speedy - Cellular Credit[citation needed]
  • 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[citation needed]
  • 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.[citation needed]
  • Akbank continues to have the highest credit ratings to be given to a bank in Turkey.[citation needed]
  • In July 2009, it was announced that Euromoney magazine had chosen Akbank as Turkey's best bank within the scope of the "Awards of Excellence".[11]

2010 & 2011

  • Euromoney: Overall Best Private Bank of Turkey
  • Global Finance: Best Bank in Turkey, Best Trade Finance Provider in Turkey, Best Foreign Exchange Provider in Turkey, Best Online Deposits Acquisition in Europe, Best European Bank in Social Media
  • EMEA Finance: Best Bank in Turkey, Best Financial Institution Borrower, Akbank August 2010 Syndication Loan: Best Financial Institution Loan
  • Euroweek: Akbank July 2010 Eurobond Issue: Best Financial Institution Deal of the Year
  • FTSE Global Markets: Akbank ranked among the most successful institutions with its July 2010 Eurobond issue in the magazine’s "20/20 All Stars" list.
  • Financial World Innovation Awards: Innovation in the Delivery of Financial Products - Banking Services Category
  • Stevie Awards 2010: Distinguished Honoree in 5 Categories: "Run to The Red" ATM Campaign – Best Banking Ads & Campaign, Wings Card Ad. – Best Banking Ads & Campaign, Axess Card New Year Campaign – Best Banking Ads & Campaign, 29th International Istanbul Film Festival Announcement Ad. – Best Banking Ads & Campaign, 2009 Annual Report. – Best Annual Report - Online/Electronic
  • Stevie Awards 2011: Winner in 1 Category & Distinguished Honoree in 2 Categories: Akbank Children’s Theater: Winner in Banking – Campaign, Akbank 2010 for you campaign: Distinguished Honoree in Banking – Campaign, Akbank 2010 Annual Report: Distinguished Honoree in Best Annual Report – Print
  • Gartner: CRM Excellence- Integrated Marketing
  • Palladium Group: 2011 Balanced Scorecard Hall of Fame for Executing Strategy - "The Most Successful Organization of EMEA region" and the first Turkish Bank that won the "Hall of Fame" award.
  • LACP (League of American Communications Professionals): Akbank 2010 Annual Report - Best Annual Report in Americas & EMEA
  • Global Banking and Finance Review: Best Bank in Turkey
  • EMEA Finance: Best Financial Institution Borrower in EMEA Region, Akbank August 2011 Syndication Loan: Best Financial Institution Loan in EMEA Region

2012

  • BRAND FINANCE: Most Valuable Banking Brand in Turkey with a Brand Value of USD 1 Billion 582 Million, Ranked 96th in Brand Finance Banking 500 – 2012 Report[8]
  • Global Finance: Best Bank in Turkey
  • EMEA Finance: Best Bank in Turkey
  • Global Banking & Finance Review Best Bank in Turkey
  • The Banker: The Best Private Banking in Turkey
  • Euromoney: Best Private Banking Services Overall in Turkey
  • Retail Banker International Awards: Best Use of CRM in Marketing
  • Global Finance: Best Information Security Initiatives in Europe
  • EBRD (European Bank for Reconstruction and Development): Excellence in Sustainable Energy Financing Award
  • Stevie International Business Awards: 3 Gold, 1 Silver and 6 Bronze Awards. Akbank Ranks Among Top 10 Global Companies.
  • LACP (League of American Communications Professionals) Vision Awards: Akbank’s 2011 Annual and Sustainability Reports are Recognised the Best Reports in the World
  • MerComm International ARC Awards: 3 Gold, 1 Silver and 2 Bronze Awards. Akbank’s 2011 Annual Report is Named the Best Annual Report in the World
  • Turkish Public Relations Association (TÜHİD) – 11th Golden Compass Awards: Best Sponsorship Communication in Culture & Arts
  • 5th PERYÖN People Management Awards: Best Company in Employee Training and Development
  • IMI Training Management and Organization-2012 Turkey Call Center Awards: Best Call Center Agent

2013

  • Brand Finance: With a Brand Value of US$ 2.1 Billion, Akbank is the "Most Valuable Banking Brand in Turkey" for the Second Consecutive Year at "World’s Top 500 Most Valuable Banking Brands - 2013" Report. Akbank Ranks 86th Among the World’s Top 500 Banking Brands
  • The Banker: Best Bank in Turkey
  • Euromoney: Best Bank in Turkey
  • Global Banking & Finance Review: Best Bank in Turkey
  • Euromoney: Best Private Banking Services Overall in Turkey
  • The Banker: Best Bank of the World in Technology Use & CRM
  • Gartner: Best Bank in CRM in EMEA/APAC Region
  • Global Finance: Best Foreign Exchange Provider in Turkey
  • Euroweek: Most Impressive EM Borrower, Most Impressive Emerging Market Financial Institution Borrower, Most Impressive CEEMEA Funding Official
  • Stevie International Business Awards: 2 Gold, 2 Silver and 3 Bronze Awards
  • LACP (League of American Communications Professionals) Vision Awards: Akbank’s 2012 Annual and Sustainability Reports are Recognised the Best Reports in the World
  • MerComm International ARC Awards: Akbank’s 2012 Annual Report is Named the Best Annual Report in the World

2014

  • Brand Finance: Akbank is the "Most Valuable Banking Brand in Turkey" for the Third Consecutive Year at "World’s Top 500 Most Valuable Banking Brands - 2014" Report. Akbank Ranks 94th Among the World’s Top 500 Banking Brands
  • Barselona GSMA - Global Mobile Awards: Akbank Direkt Mobile App voted as the Best Smartphone App Akbank is first Turkish bank to receive this award.[12]

See also[edit]

References[edit]

  1. ^ "Board of Directors – Akbank T.A.Ş.". Retrieved June 28, 2012. 
  2. ^ "Senior Management – Akbank T.A.Ş.". Retrieved June 28, 2012. 
  3. ^ a b c d e f "ANNUAL REPORT 2011" (PDF). Akbank T.A.Ş. Retrieved 2012-06-28. 
  4. ^ "Subsidiaries – Akbank T.A.Ş.". Retrieved June 28, 2012. 
  5. ^ a b http://www.akbank.com/doc/Akbank_Investor_Presentation.pdf
  6. ^ http://articles.chicagotribune.com/2012-05-24/news/sns-rt-akbank-urgentl5e8gofim-20120524_1_citigroup-stake-istanbul-stock-exchange
  7. ^ a b c http://brandirectory.com/league_tables/table/banking-500-2014
  8. ^ "SABAH - AKBANK'taki ihtilâf Sabancılar'a yaradı". Arsiv.sabah.com.tr. Retrieved 2012-12-18. 
  9. ^ http://articles.chicagotribune.com/2012-05-24/news/sns-rt-akbankl5e8gofp8-20120524_1_citigroup-stake-lira
  10. ^ "June 2010 - Banks, Branches and Employees". The Banks Association of Turkey. June 2010. Retrieved 2010-08-18. 
  11. ^ "Turkish Bank Receives Euromoney Award". TurkNet İletişim. 9 July 2009. Retrieved 2009-07-28. 
  12. ^ http://www.gsma.com/newsroom/gsma-winners-2014-global-mobile-awards/

External links[edit]