TSKB Reaches TL 146.6 Billion Asset Size in First Half of the Year
TSKB announced its financial results for the second quarter of 2023. According to the Bank’s bank-only financial statements, it reached a total asset size of TL 146.6 billion. In his assessment of the results, TSKB CEO Murat Bilgin said, “Thanks to our robust performance in line with our projections in the first six months of 2023, we grew our loan portfolio, which predominantly consists of foreign currency and investment loans, by approximately 2 percent on a foreign currency adjusted basis. Our total loan portfolio reached TL 111.5 billion. We maintained our ratio of SDG-related loans in our total portfolio at 92% as of end-June. Throughout the first six months, we remained steadfast in our support for SDG-focused investments, particularly in climate finance and renewable energy sectors. In the 100th anniversary of our Republic, we are committed to building upon our Bank’s performance, fostering greater collaboration with stakeholders, and deepening our partnerships with international financial institutions to enhance our support for sustainable and inclusive development in our country.”
TSKB (Industrial Development Bank of Turkey) has announced its financial results for the second quarter of 2023. Accordingly, TSKB’s total asset size amounted to TL 146.6 billion in the second quarter of 2023, while its total loan portfolio reached TL 111.5 billion with an FX-adjusted growth of nearly 2%.
Throughout the first six months, the Bank continued its significant contributions to financing climate finance, renewable energy, and SDG-focused investments across various sectors. Additionally, commission income from investment banking and advisory activities saw an annual increase of 65 percent, contributing to banking revenues. In the first six months of 2023, TSKB’s profit before provisions and taxes amounted to TL 6.1 billion, while its net profit for the same period was TL 3.2 billion. With this performance, the Bank delivered a return on equity of 43.4 percent.
Murat Bilgiç: “The share of SDG-linked loans in our total portfolio is 92 percent.”
Commenting on the Bank’s second quarter financial results, TSKB CEO Murat Bilgiç said, “Thanks to our robust performance in line with our projections in the first six months of 2023, we have grown our loan portfolio, which predominantly consists of foreign currency and investment loans, by approximately 2 percent on an exchange rate-adjusted basis since the beginning of the year. Our total loan portfolio has reached TL 111.5 billion. We maintained the ratio of SDG-linked loans in our total portfolio at 92% as of end-June. Throughout the first six months, we remained steadfast in our support for SDG-focused investments, particularly in climate finance and renewable energy sectors. In the 100th anniversary of our Republic, we are committed to building upon our Bank’s performance, fostering greater collaboration with stakeholders, and deepening our partnerships with development finance institutions and financial institutions to enhance our support for sustainable and inclusive development in our country.”
Murat Bilgiç: “As a bank with approximately 85% of its funding base focused on ESG, we differentiate positively in our sector.”
Stating that they continue capacity building and resource diversification activities with international stakeholders within the scope of combating climate change, Bilgiç added: “We resolutely continue our active support for our country’s green transformation and fair transition to a low-carbon economy. To support the private sector’s investments in renewable energy and energy efficiency, we secured EUR 100 million in loans from the German Development Bank (KfW) in April and EUR 25 million from the Austrian Development Bank (OeKB) in May. In July, we signed our syndicated loan indexed to sustainability criteria, which we obtained from international finance institutions with a roll-over rate of 113%. We are happy to finalize this loan, which comprises of two tranches of USD 17.5 million and EUR 94 million, with the participation of 9 banks, including 2 new participants. As a bank with approximately 85% of its resources focused on ESG, we differentiate positively in our sector. With the sense of responsibility brought about by our sustainable development mission, we will persist in fostering effective collaborations with international development finance institutions and financial entities, bringing the real sector together with qualified funds.”
TSKB places paramount importance on transparent communication and transformation-oriented engagement with stakeholders throughout its climate journey.
In alignment with TSKB’s stakeholder and materiality analysis, which was renewed taking the principle of double materiality into account, the management of climate risks and opportunities takes precedence as the Bank’s top strategic priority. As an official supporter of the Task Force on Climate-Related Financial Disclosures (TCFD), TSKB has made a commitment to the 2050 Net Zero journey, solidifying its dedication by becoming a signatory of the UN Net-Zero Banking Association (NZBA) last year. In line with this direction, the Bank took a significant stride towards addressing long-term climate risks by announcing its emission targets, which have been approved by the Science Based Targets initiative (SBT-i) in July. In the same month, TSKB submitted its Climate Disclosure Project (CDP) Climate Change Report, having attained a “Leadership” level recognition last year. Since 2006, the Bank has been measuring and managing its carbon footprint, positioning itself as one of the pioneering stakeholders in Türkiye to join the Carbon Disclosure Project, one of the world’s most significant initiatives in the scope of climate change.
TSKB, prioritizing transparent communication and transformation-oriented engagement with stakeholders on its climate journey, demonstrated exemplary leadership in the business world by publishing Turkey’s first Responsible Sustainability Communication Policy last year. In line with this policy, the Bank has implemented award-winning projects to reduce the environmental footprint of its communication projects and published its latest integrated annual report as an “Energy Efficient Report”.
TSKB continues to empower its business partners in the field of gender equality
TSKB continues its efforts to promote gender equality and inclusive development by encouraging its business partners to seek certification within the scope of the “Women’s Employment Loan Program”. The Bank has allocated approximately USD 445 million to 269 projects so far. In the second quarter of the year, four companies were awarded KAGIDER’s Equal Opportunity Model (FEM) certificate with the support of TSKB and strengthened their gender equality practices in the workplace.
Murat Bilgiç: “As an institution bearing Türkiye in its name, we embrace the responsibility of creating enduring legacies for our country as we approach the 100th anniversary of our Republic.”
This year, TSKB supported 21 young female musicians as part of the “Women Stars of Tomorrow: Education Support Fund”, an initiative launched in 2018 in collaboration with İstanbul Foundation for Culture and Arts (İKSV). Thus, TSKB has now contributed to the education of 90 gifted young individuals abroad over the course of 6 years. In commemoration of the 100th anniversary of the Republic and to further bolster its support for artistic production, TSKB has taken the project one step further by commissioning a special work of art. The world premiere of the commissioned work, composed by talented pianist and composer Cem Esen, took place at Süreyya Opera House on June 11. The piece, composed for piano and cello, was performed by the musicians eligible to benefit from the Women Stars of Tomorrow Education Fund in 2023.
Referring to the Bank’s special projects for the 100th anniversary of the Republic, Bilgiç concluded his words as follows: “As a bank founded 73 years ago through a special law passed by the Grand National Assembly of Türkiye, with a mission to support development investments and foster capital markets, we take immense pride in being at the forefront of sustainable banking in Türkiye today. As an institution bearing “Türkiye” in its name, we embrace the responsibility of creating enduring legacies for our country as we approach the 100th anniversary of our Republic. This year, alongside our banking activities, we will maintain our strong commitment to supporting Türkiye’s social and cultural development by actively engaging in diverse social projects across various fields.”
