TSKB Supports Türkiye's Sustainable Development with a Loan Growth of 11.6% on Currency Adjusted Basis in 2024
TSKB announced its financial results for the year 2024. According to the Bank’s non-consolidated financial statements, total asset size of the Bank has reached to TL 231.3 billion with a year-on-year increase of 30.7%. In 2024, TSKB increased its loan portfolio by 11.6% to TL 166.4 billion on a currency-adjusted basis and its annual profit surged by 44%. Thus, the Bank maintained its differentiated position in the sector in terms of sustainable high performance with results that stand-out with its profitability, strong capital structure and asset quality in line with year-end targets. TSKB CEO Murat Bilgiç stated that, in line with the Bank's development mission, they will increasingly continue to create value for Türkiye's sustainable development goals through corporate banking, investment banking and advisory services.
Celebrating its 75th anniversary this year as Türkiye's first privately-owned development and investment bank, TSKB (Industrial Development Bank of Türkiye) announced strong financial results in line with its 2024 year-end targets. Accordingly, the Bank increased its total asset size by 30.7 percent year-on-year to TL 231.3 billion, disbursed over USD 1.8 billion worth of long-term cash loans and increased its loan portfolio by 11.6 percent to TL 166.4 billion on currency adjusted basis. As of year-end 2024, the loan-to-asset ratio stood at 72 percent, well above the sector average.
Providing financing to the Sustainable Development Goals (SDG) focused projects, TSKB achieved 52% of its SDG-focused financing target of USD 10 billion for 2030 by the end of 2024. Throughout the year, TSKB continued to invest in inclusive and strategic development areas such as climate and earthquake finance, renewable energy, energy and resource efficiency, capacity building in the manufacturing sector, new technology investments and women's employment. During the same period, the Bank maintained the share of commission income from investment banking and advisory services in its banking revenues, while its net profit for the period increased by 18 percent quarter-on-quarter and 44 percent year-on-year to TL 10.1 billion. Through its sustainable financial performance, the Bank achieved a return on equity ratio of 38.5%. Further improving its healthy asset quality and growing primarily in Türkiye's strategic transformation areas, TSKB achieved a capital adequacy ratio of 26.9%, well above the sector average, thanks to its differentiated business model and capital generation capacity.
Emphasizing that TSKB aims to create lasting value by effectively utilizing diversified financing resources for sustainable development goals, TSKB CEO Murat Bilgiç said: "We achieved a strong financial performance above the sector in line with the competitive targets we set for 2024. Throughout the year, we signed six funding agreements, two of which are a first, with the World Bank (IBRD), the French Development Agency (Agence Française de Développement - AFD), the Italian Public Development Bank (CDP), the International Islamic Trade Finance Corporation (ITFC), the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD). In 2024, a year in which we were very active in international capital markets, we strengthened our rich funding structure with a total of USD 1.7 billion , a record high in TSKB's history. Our Additional Tier-1 Eurobond issuance in March and our successful Eurobond issuance in October supported our operations with our effective liquidity and capital management strategy. Our Bank also extended over USD 1.8 billion new long-term cash loans, increasing its loan portfolio by 11.6 percent to TL 166.4 billion in currency adjusted basis."
"The responsibility of development banks will continue to increase in 2025"
Speaking about TSKB's targets for 2025, Bilgiç said, "In 2025, when our growth strategy will be sustained, we are targeting double-digit FX-adjusted loan growth in parallel with 2024. Our diversified funding activities, solid return on assets, high provision ratios and strong capital buffers well above the industry average will support our growth targets. On the other hand, we will continue to create qualified value through our corporate banking, investment banking and advisory services in line with the sustainable development goals of our country and our Bank in 2025 by maintaining our position, which is significantly positively differentiated from the sector in 2024 thanks to our stable profitability."
Regarding the Türkiye Green Fund, for which important steps were taken in 2024, Bilgiç said the following: "We aim to increase the fund, which had an initial volume of USD 155 million that we invested through the loan extended by the World Bank to TSKB, to USD 405 million with the contribution of other investors. The fund, which has an important mission to accompany the transformation processes of companies, especially in terms of supporting environmental sustainability and green transformation, is a strong milestone in TSKB's 75-year history. 2024 was the year the fund was established and became active, and we hope that 2025 will be the year we start to see it translate into concrete investments."
Reminding that June 2, the date of TSKB's establishment, has been registered as "TSKB Development Day" and that the Bank will celebrate its 75th anniversary in 2025, Bilgiç said, "In the green, technological and social transformation process, which we refer to as the "triple transformation" that our world is going through, the responsibility of development banks will continue to increase in 2025 and following years. We believe that technological transformation, which constitutes the second stage of the "triple transformation" process, is a critical focal point in terms of efficiency. The third stage, which we characterize as social transformation, will be guided by efforts to develop human capital. As Türkiye's first and only private development bank, we will continue to contribute to this transformation through our deep knowledge, qualified expert teams and inclusive banking experience spanning 75 years."
