Akbank in Brief
Akbank was founded in Adana in January 1948, originally to provide financing for the cotton producers in the region. Growing and developing over time, the Bank opened its first branch in Istanbul in the Sirkeci district on July 14, 1950; in 1954, it relocated its Headquarters to Istanbul. 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.
As of the end of 2007, Akbank ranked 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.
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. Equipped with state-of-the-art IT systems and a staff of experienced bankers, Akbank focuses on providing top quality services to a wide range of retail and corporate customers.
With its strong and extensive domestic distribution network that includes 715 branches and 13,513 employees, Akbank operates from its headquarters in Istanbul and 20 regional directorates around Turkey. Akbank provides services not only through its traditional delivery channels such as 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, 1.855 ATM's, 835 BTM's, 253.274 POS terminals and its new high-tech channels such as cell phones and web-based platforms. Additionally, Free Banking Areas have been set up inside branches in which customers have access to both Internet and telephone banking services. Akbank NV in the Netherlands and Akbank AG in Germany, as well as a branch in Malta, carry out Akbank's overseas operations.
On January 9, 2007, Akbank and Citigroup have successfully completed the strategic partnership agreement according to which Citigroup acquired a 20% equity stake in Akbank for approximately US$ 3.1 billion (YTL 0.095 per share). This strategic partnership with Citigroup contributed dearly to the development of new commercial banking activities, to the improvement of available products and to the development of new products.
The year 2007 has been a year in which Akbank successfully progressed to become the most valuable, stable and innovative bank in Turkey, and developed new products and delivery channels that addressed its customers' needs. These include "smsCredit", enabling customers to apply for consumer loans solely with their citizenship number via an SMS message; "Credit Express" branches selling only consumer loans; "the Credit Machine" which gives a client the opportunity to get a loan without going to the bank and the new credit card "Wings", the first of its kind in the sector with the most advantageous mileage program.
At the end of 2007, net profit of Akbank reached 2 billion YTL (approximately 1,76 billion US dollars) and its asset size amounted to 72,1 billion YTL (approximately 62,2 billion US dollars). With higher levels of equity, strong deposit franchise, low-cost funding opportunities and strong growth in its asset size, Akbank becomes a bank having the most profitable banking operations among privately owned banks in Turkey. In 2007, Akbank's loan portfolio reached 40 billion YTL growing by 32% and market share increased to %13 from 13,4%.
In 2007, consumer loans grew by 43% and increased to 8,8 billion YTL, reaching a market share of 13,2%. In addition to that, general purpose loans recorded a 83% increase and reached 3,4 billion YTL with an increase in market share from 10,4% to 11,6% compared to last year.
In 2007, deposits grew by 21,3% reaching 43,6 billion YTL coupled with an increase in market share from 11% to 11,6%.
In 2007, Akbank continued to raise funds from foreign markets at favorable terms; the total of these resources rose to US$ 7,889 million.
25% of Akbank's shares are traded on the Istanbul Stock Exchange. The bank's Level 1 ADRs are traded on the IOB in London and the OTC in the United States. As of December 31, 2007, Akbank's market capitalization stood at US$ 22, 5 billion, making it the most valuable bank on the Istanbul Stock Exchange.
