TSKB’s Asset Size Reaches TL 99.1 Billion
TSKB has announced its financial results for the first half of 2022. According to the Bank’s non-consolidated financial statements, it has reached a total asset size of TL 99.1 billion. Commenting on the results, TSKB CEO Murat Bilgiç said, “I believe that our extensive expertise in sustainable development banking and the experience we have gained through the numerous projects we have implemented are very valuable for both our industry and our stakeholders in the manufacturing world. We are pleased to conclude the first half with strong financial results, and we expect to close the year with a performance that exceeds our targets within the framework of our mission. In parallel with the developments in the world and the needs of our country, we will continue to move forward with a holistic approach in order to continuously deepen and expand our influence with all our business lines and to support the green transformation of the real sector.”
In the first half of 2022, TSKB (Industrial Development Bank of Turkey) increased its total asset size by 18 percent to TL 99.1 billion compared to the beginning of the year. The loan portfolio, which has a 70% share in assets, grew by 9 percent in the first half of the year, with the financing provided to investments in different sectors, especially the manufacturing industry, under the theme of inclusiveness with renewable energy projects, reaching TL 69.6 billion. While the Bank’s shareholders’ equity size expanded by 17 percent in the same period to TL 8.1 billion, the net profit for the six-month period was TL 1.5 billion. Thus, the Bank completed the second quarter of the year with a return on equity ratio of 40.4 percent.
“We foresee to close 2022 with a performance that exceeds our targets”
Noting that despite the concerns in global markets, TSKB continues to create value and maintains its strong financial performance in line with its mission of providing qualified support to the development of the country, TSKB CEO Murat Bilgiç said in his assessment of the Bank’s financial results, “TSKB is a bank that has distinguished itself for many years with its vision of sustainable and inclusive development and its committed steps in this direction. With the pandemic, the need for transformation of all sectors has become clear, and the importance of investments that provide environmental and social benefits has become more relatable. In a time like this, I believe that our extensive expertise in the field of sustainable development banking and the experience we have gained through the numerous projects we have implemented are very valuable for both our industry and our stakeholders in the manufacturing world. We are pleased to conclude the first half of the year with strong financial results, and we expect to close the year with a performance that exceeds our targets within the framework of our mission. In parallel with the developments in the world and the needs of our country, we will continue to move forward with a holistic approach in order to continuously deepen and expand our influence with all our business lines and to support the green transformation of the real sector.”
“We have signed new sustainability-themed global funding agreements”
Referring to the new sustainability-themed global funding agreements signed in the first half of the year, Murat Bilgiç said, “In April, we executed the first transaction within the framework of the 'Green Economy Financing Facility' with the EUR 53.5 million loan agreement signed with the EBRD. Proceeds of this funding will be used to finance green economy investments, especially renewable energy and energy efficiency, of the companies throughout Turkey within the scope of combating climate change. On July 25, we signed our third Sustainability Linked Syndicated Loan Agreement with the participation of 8 banks from 8 different countries from Europe, America, Asia and the Middle East. We will provide financing for the transition of the real sector in our country to sustainable business models, which we call green transformation, with this new fund amounting to USD 109 million.”
“We continue to work non-stop for our 5-year roadmap to combat climate risks.”
Stating that advancing with the right strategies and systematic steps in the field of sustainability, provides a significant flexibility and resilience against all crises and risks, Murat Bilgiç went on to add, “The course will now be determined by transformation investments for the reduction of climate risks, both for our country and for the world. As a development bank, we are aware of our transformative power and see this transition as an important opportunity for the common future of humanity. For the last 30 years, we have been responsible for being an institution that distinguishes itself positively in our sector, with our concrete contribution to the fields of environment, climate and social development. In order to achieve the 2053 Net Zero Emissions target of our country, all sectors, especially finance, have a major role to play. As TSKB, we continue to work non-stop for our 5-year roadmap to combat climate risks, which is one of the significant focal points of our strategy. Last year, we started to include and report the emissions of financed projects into our emission measurement and verification processes. While supporting our stakeholders with our smart financing models, we will continue to raise awareness and contribute to transformation processes with our investment banking and consultancy services. We will continue to produce concrete solutions that will quickly prepare our real sector for the new era with the special funds we provide from supranational development finance institutions and global markets.”
“We measure the environmental and social risks of all investment and business loans”
Stating that it is critical for the banking sector, which has a high transformative power in line with its sphere of influence, to contribute to other sectors with sustainability-themed opportunities, Murat Bilgiç said, “For many years, we have been measuring the environmental and social risks of all investment loans, preparing management plans for the identified risks and meticulously monitoring the actions taken. We have been adopting the same approach in business loans since 2021. We proceed with a mapping based on Sustainable Development Goals in all our project evaluations. After the publishment of the Climate Risks Report in line with TCFD recommendation last year, we have developed and implemented a model that integrates climate risks and effects into all our loan processes. In this important work, we cooperated with experts from TSKB and our subsidiary Escarus, as well as with representatives from supranational development finance institutions, related initiatives and academia. We think that this model, which we had the opportunity to share with development finance institutions from different countries at the Climate Workshop we held with IDFC, is an important step in the field of sustainable finance. On the other hand, we are constantly carrying forward the support we have provided for many years in areas such as the women and youth empowerment, equal opportunities, health and education in order to ensure an inclusive social development in our country. The measurement of social impact and impact investments, which are the result of all these efforts, are also among our important agenda items.
“We also prioritize environmental, social and governance aspects in our investment banking and consultancy services”
Touching upon TSKB’s non-lending activities, Bilgiç said, “We prioritize environmental, social and governance aspects in our investment banking and consultancy services. We are working to bring innovative products and green-oriented companies to the Turkish capital markets through the green and SDG-focused issuances we mediate. We offer our experience in the field of development and investment banking to the sectors that determine the development of Turkey with our consultancy teams consisting of financial advisors, engineers and economists. As such, we create a greater impact by transferring our knowledge as well as our financing opportunities to the development of the country.”
“The awards we receive from global platforms are an indication that we are taking the right steps in the field of sustainability.”
Stating that TSKB was deemed worthy of important awards in the second quarter of the year, Murat Bilgiç concluded his words as follows: “The successful projects we implemented continued to bring us prestigious awards in the global arena in the second quarter of 2022 as well. We were deemed worthy of the ‘Best Bank of Turkey in Sustainable Development’ award in the ‘ESG and Sustainability’ category at the Global Banking & Finance Awards 2022. Being named ‘Turkey’s Most Sustainable Bank’ at ‘World Finance Banking 2022’ made us proud as it confirms our pioneering role in the Turkish finance sector. Although awards are not a primary goal for us, the fact that our sustainability performance attracts attention in the global arena is both an indication that we are taking the right steps and an important motivation for us. I once again congratulate all our teams, who passionately embrace the vision of our Bank and always work for the better, for these successful results.”
