Akbank was founded as a local bank in Adana in January 1948. Established originally with the core objective to provide funding to local cotton producers, the Bank opened its first branch in the Sirkeci district of Istanbul on July 14, 1950. In 1954, after relocating its Head Office to Istanbul, the Bank rapidly expanded its branch network and had automated all banking operations by 1963.
Floated to the public in 1990, Akbank shares began trading on international markets and as an American Depository Receipt (ADR) after its secondary public offering in 1998.
Akbank established AKSecurities in 1996, AKInvestment Trust in 1998, AKAssetManagement Company and its Private Banking Department in 2000 and Ak Pension Company in 2003. Akbank acquired AKLease in 2005 and Ak Pension Company was sold to Ak Insurance in February 2006.
Akbank conducts overseas operations through its subsidiaries in Germany (Akbank AG), the Netherlands (Akbank NV) and Dubai (Akbank Dubai Limited) as well as a branch in Malta. As part of the initiative to restructure its overseas subsidiaries, Akbank decided to consolidate Akbank AG and Akbank NV under the corporate umbrella of Akbank AG; the merger is currently underway.
In addition to its core banking activities, Akbank offers a wide range of consumer, commercial and SME, corporate and private banking services as well as foreign trade financing. The Bank’s subsidiaries provide non-banking financial services alongside capital markets and investment services. Equipped with state-of-the-art IT systems and a staff of experienced professionals, Akbank strives to provide top quality services to an extensive portfolio of consumer and corporate banking customers.
With a strong and extensive domestic distribution network of 926 branches and more than 15,000 employees, Akbank operates from its Head Office in Istanbul and 20 regional directorates across Turkey. In addition to offering services through branches, the Bank’s traditional delivery channel, Akbank also serves customers through its Consumer and Corporate Internet Branches, the Telephone Banking Center, 3,695 ATMs and more than 288,000 POS terminals as well as other high-tech channels.
Citigroup has held a 20% strategic equity stake in Akbank since January 2007. This strategic partnership has enhanced Consumer Banking activities with joint ATM usage and credit card applications such as Citi Axess and Citi Wings; additionally, it has aided in creating joint corporate banking and project finance business opportunities. These activities continue apace within a strong cooperative framework.
The Akbank Banking Center, which is the highest transaction capacity operations center in Turkey, commenced service in 2010. Equipped with state-of-the-art technology, this complex is positively contributing to Akbank’s productivity.
Harvard University Kennedy School of Government (Harvard KSG) has turned Akbank’s transformation story and growth strategy in the aftermath of the 2001 crisis into a case study. The Bank adopted the “New Horizons Restructuring Program” in response to the Turkish economic crisis of 2001, when the country’s economy and banking industry were struggling to deal with the impact of the crisis. The management, change and growth strategy which the Bank implemented not only positioned Akbank to grow during the crisis years but also turned the Bank’s Program into a lecture topic and a reference success story on how to manage and achieve growth during a sharp economic contraction.
Beyond monitoring and adopting global banking trends, Akbank’s ability to developnew customized products and channels, has turned the Bank’s idea of being “Turkey’s innovative power” into reality through concrete examples. The Bank has introduced many trailblazing practices in Turkey including the “Big Red House” mortgage loan-only branches and “Credit Express” consumer loan-only branches. Akbank also broke new ground globally with the Loan Machine and Mobile Loan innovations which allow customers to obtain loans without having to visit a bank branch. Akbank continues to diversify its product and service portfolio, expand its distribution channels, broaden its customer base and adhere to a risk-management approach while providing the best banking experience for its clients.
As a result of highly successful applications and effective long-term strategic management, Akbank received the “CRM Excellence-Integrated Marketing” award from Gartner in 2011 for its “Atom” customer relations management system which launched in 2010. Akbank became the first Turkish bank to win this award, granted for the entire Europe, Middle East, Africa, Asia-Pacific and China (EMEA/APAC) region.
The “Hall of Fame” awards distributed by the Palladium Group Europe which carries out an assessment on companies that successfully implement strategy focused organizational models in the Middle East and Africa Regions (EMEA) named Akbank the “The Most Successful Organization of the EMEA Region”. Akbank was the first Turkish bank to receive this award in the organizational management area, which is one of the most prestigious awards given on an international platform.
With an assessed brand value of US$ 1.58 billion, Akbank was named the “Most Valuable Banking Brand in Turkey,” by Brand Finance in the “Brand Finance Banking 500” report. In addition, Akbank ranked 96th, globally, in the Top 500 Most Valuable Banking Brands list.
As one of the most committed supporters of contemporary art in Turkey and with the aim of being present in all areas of art, Akbank’s arts and culture initiatives span a wide range of fields. In addition to providing banking services, Akbank’s expansive vision include investments ranging from arts events geared toward social progress such as jazz, theatre and contemporary arts to environmental protection practices such as the Carbon Disclosure Project.
With its robust capital base, reliable deposit structure, ability to raise foreign financing on favorable terms and solid asset quality, Akbank maintains its leading position in the Turkish banking sector. As of the end of 2011, Akbank reported a consolidated net profit of TL 2,535 million (approximately US$ 1,342 million) and total consolidated assets of approximately TL 140 billion (approximately US$ 74 billion). The Bank’s consolidated capital adequacy ratio of 16.8% is among the highest in the sector.
31% of Akbank’s shares are listed on the Istanbul Stock Exchange. The Bank’s Level 1 ADRs are traded on the OTC in the United States. Akbank’s market capitalization stood at US$ 12.7 billion as of December 31, 2011.
