TSKB Achieves 74% Year-on-Year Profit Growth as Asset Size Reaches TL 176.9 Billion

5 February 2024
- 4 min. Read

TSKB has announced its financial results for the year 2023. According to the Bank’s unconsolidated financial statements, its total asset size has reached TL 176.9 billion in 2023. In a statement, TSKB CEO Murat Bilgiç remarked, “We concluded 2023, the year of our Republic’s centennial, with notable financial achievements. As of year-end, we expanded our primarily foreign currency-denominated loan portfolio by 5 percent on a FX-adjusted basis. Alongside our commendable economic performance, we embarked on numerous special projects during this period, broadening our environmental, social, and cultural impact. While contributing to the realization of investments centered on high-quality sustainable development, we attained a financial outcome that aligns with our expectations. In 2024, we will persistently elevate our Bank’s standing in the finance sector, channeling all our efforts towards pioneering and innovative endeavors that prioritize sustainable development, paving the way for our country’s next century.”

TSKB (Industrial Development Bank of Türkiye), dedicated to fostering quality development and a sustainable future through socially beneficial projects alongside its core banking operations, has announced its financial results for 2023. As of the end of 2023, TSKB’s total assets amounted to TL 176.9 billion, while its loan portfolio, mostly denominated in foreign currency, grew by 5 percent, reaching TL 130.1 on a FX-adjusted basis. 

Throughout the year, the Bank remained steadfast in its commitment to financing projects aligned with the Sustainable Development Goals (SDGs). It extended a total of USD 1.3 billion financing to the real sector, specifically targeting areas such as climate finance, renewable energy, reconstruction of the earthquake-affected regions, and the support of sustainable practices within the private sector. On the other hand, TSKB’s commission income from investment banking and advisory activities bolstered banking revenues, registering an annual increase of 186 percent. TSKB achieved a net profit of TL 7 billion, marking a notable year-on-year increase of 74 percent. Additionally, the return on equity ratio was recorded at 41.2 percent.

TSKB CEO Murat Bilgiç: “The funds secured in 2023 totaled USD 1.1 billion.”

Commenting on TSKB’s 2023 financial results, TSKB CEO Murat Bilgiç said, “Since the earthquake disaster we encountered in February 2023, our efforts have been dedicated to social recovery from the outset, prioritizing the region’s reconstruction and sustainable development. Through the syndicated loan secured by our Bank from international financial institutions with a roll-over ratio of 113% in July and our fourth successful issuance of sustainable Eurobond in international capital markets in September, the funds secured in 2023, aimed at fostering economic, environmental, and social redevelopment in disaster-affected areas, totaled USD 1.1 billion. The USD 100 million funding agreement signed with the Islamic Development Bank (IsDB) in the last quarter of the year stands as a crucial pillar for fostering qualified and sustainable recovery efforts in earthquake-affected regions. During the same period, we finalized our fourth loan agreement with the Japan Bank for International Cooperation (JBIC) under the guarantee of the Ministry of Treasury and Finance, with a strategic focus on ‘permanent green recovery’, thereby securing an additional USD 200 million in new funding for our country. Through this fund, we aim to bolster investments in renewable energy, energy efficiency, water and waste management systems, and advanced technology-supported energy efficiency initiatives in earthquake-affected regions. The USD 155 million agreement secured from the World Bank will be allocated to establish a groundbreaking initiative, the Türkiye Green Fund, as a culmination of our longstanding partnership.”

“Through the Türkiye Green Fund, we are enhancing our commitment to advancing sustainable development goals”

Highlighting the Türkiye Green Fund as one of the pivotal projects accomplished during the year, Bilgiç elaborated further on the matter, stating, “We successfully obtained a USD 155 million loan from the World Bank, backed by the Ministry of Treasury and Finance guarantee, to establish the Türkiye Green Fund. The Türkiye Green Fund, slated to reach a total size of USD 405 million and commence operations in 2024, marks the first venture capital investment fund in Türkiye and globally to be funded through loans and established with a primary emphasis on emission reduction and inclusive transformation. Through the Türkiye Green Fund, which will actively mobilize private capital, we are enhancing our commitment to advancing sustainable development goals.”

“We are glad to set an example for our sector and our country through our ESG risk and management rating”

Highlighting the Bank’s notable achievement according to the assessment by Sustainalytics, which evaluates organizations’ risk level and management performance in the areas of environmental, social, and governance (ESG) factors, TSKB CEO Bilgiç stated, “In 2023, we climbed to 9th place among global development banks and maintained our position as the top performer in our country. We take great pride in being the only organization from Türkiye included in the Global 50 List announced by Sustainalytics as of 2024. We are delighted to set an example for our sector and our country through our ESG risk rating.”

Asserting that TSKB has been actively contributing to Türkiye’s sustainable development through its advisory and investment banking endeavors for numerous years alongside its financial operations, Bilgiç added, “We firmly believe in achieving sustainable progress together with all our stakeholders for the sustainable future of our country. We offer advisory services to companies across various sectors, collaborate in crafting financial strategies to enable effective investment management, and play a pivotal role in advancing the proliferation and refinement of eco-conscious investments.”

The number of school libraries established by TSKB in the earthquake-affected region reaches three

Expressing their commitment to fostering not only the financial but also the social and cultural advancement of the earthquake-affected region, Bilgiç remarked, “With a firm belief in the transformative power of quality education and investments in culture and the arts, we actively contribute to Türkiye’s promising future through our long-term initiatives in these fields. In 2023, we initiated our enhanced school libraries project to ensure uninterrupted education in provinces affected by earthquakes and to foster social recovery. With the goal of establishing 11 libraries across 11 provinces by 2025, we inaugurated our first library in Gölbaşı, Adıyaman, followed by the second in Nurdağı, Gaziantep, and now the third in Pazarcık, Kahramanmaraş. Known as ‘TSKB Centennial of the Republic Library,’ our libraries are carefully designed with an extensive collection of books aimed at nurturing children's love for reading. Additionally, they offer a variety of stimulating games, state-of-the-art technological resources, and educational aids designed to enhance mental development. Our objective is to further enhance the educational landscape for many more students by expanding our library initiative to the remaining 8 provinces by 2025.”