Yapı Kredi

2006 was an important year for Koç Financial Services (KFS), a 50:50% joint venture between UniCredit Group and its local partner, Koç Holding. In September 2005, 57.4% of Yapı Kredi Bank, one of the largest banks in Turkey with a sharp focus on retail banking, was acquired by KFS which already held a 99.8% interest in Koçbank. In April 2006 the share in YKB was increased to 67.3%.

Following the integration of Yapı Kredi and Koçbank, Yapı Kredi is now the fourth-largest privately owned bank in Turkey, with a network of 653 branches and leading positions in credit card business, in assets under management, leasing, factoring, pension insurance and in non-life insurance.

In 2006 the entire IT landscape was standardised. All banking products, all customer data as well as the networking of all the branches and more than 1,700 cash dispensers were successfully bundled on a single IT platform.

In December 2006/January 2007 the four major subsidiaries of KFS and Yapı Kredi in the segments leasing, factoring, asset management and investment banking/brokerage were successfully integrated. Neither the endeavours of the integration process nor the high volatility of Turkish financial markets between April and June 2006 affected the bank’s profits or balance sheet in a negative manner. The bank’s capital base and liquidity situation were noticeably strengthened by issuing subordinated capital in the amount of US$ 850 m as well as by syndication and securitisation transactions for a total volume of US$ 1.9 bn.

Without taking the effects of integration into consideration, the bank’s share of revenues of the Turkish banking sector rose by 0.2% to 9.9%; the bank further expanded its market leadership position in credit card business by 2% and in pension funds by 0.7%. There was an increase of 72% in credit card sales within the Koç Group via Yapı Kredi’s Worldcard, the leading credit card on the Turkish market.

Outlook:

In 2007 the bank will focus on credit card business and on consumer finance. In this connection, the bank is planning to add 50 branches to its branch network and carry out improvements in existing branches. Further focal points will be asset management and small businesses, while there will be continued selective growth in business with corporate customers.