Business Model

Individual Banking

With its strategy that focuses on the customer, Yapı Kredi offers its customers a wide range of value-creating products and services with its Individual and Blue Class sub-units.

Products and Services

Deposits: Time Deposits, Demand Deposits, Flexible Time Deposits, Fund Deposits, Gold Deposits, 5D Deposits, Inflation Indexed Deposits, Employee Term Account, Housing & Dowry Account.

Loans: General Purpose Loans, Individual Flexible Accounts, Mortgage Loan, Mortgage Loan, Home Improvement Loans, Auto Loans, FordFinans Auto Loans, Installment Payment System for Schools (TEST).

Individual Payments: Bill Payments, Regular Payments, Rent Payments

Insurance: Health Insurance, Life Insurance, Elementary Insurance, Private Pension

Investment Products: Funds, Stocks, Bills, Snowballs, My First Money, Cumulative Products

Safe Deposit Box, Gold Days (Scrap Gold), Findeks Package, Product Bundles

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Private Banking and Wealth Management

As at year-end 2019, Yapı Kredi was offering private banking service TL 67 billion in client assets in private banking and wealth management out of 21 private banking locations and with its teams specialized in asset management. Yapı Kredi Private Banking offers integrated wealth management through the Bank’s subsidiaries, Yapı Kredi Invest and Yapı Kredi Asset Management, as well as the entire range of banking products and services for all financial needs of its clientele.

Products and Services

Mutual Funds, Smart Fund Basket, Yapı Kredi Bills and Bonds, Private Sector Bills, Eurobond, Indexed Time Deposits, Fund Deposits, Equity Market, BorsaCepte, TradeBOX, FXBOX, Warrants, TurkDEX Transactions, Derivatives Market (VIOP) Transactions, Structured Products, Derivatives, Art Loan, Boat Loan, Tax, Real Estate, Inheritance, Education, Philanthropy and Art Consultancy

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Subsidiaries

Yapı Kredi Leasing

Yapı Kredi Leasing was established in 1987, and 99.99% of its shares are held by Yapı Kredi. Yapı Kredi Leasing holds a market share of 20.34% in terms of leasing receivables. Yapı Kredi Leasing continues to leave its print in the leasing sector and to stand by its customers at all times with its smart solutions, expert teams and vast experience.

Yapı Kredi Leasing preserved its solid position in the sector once again in 2019. The Company provided financing for machinery investments in the real sector, with a particular focus on manufacturing and construction equipment industries.

Yapı Kredi Leasing will seek to retain its leadership in the sector, to further consolidate its customer network and sector positioning in 2020.

Yapı Kredi Factoring

99.95% of its shares held by Yapı Kredi, Yapı Kredi Faktoring was established in 1999.

Yapı Kredi Faktoring is differentiated from its competition with its robust capital structure and performance, in-depth experience, and its expert team that has adopted a high quality approach to service. Yapı Kredi Faktoring holds a market share of 15.2% in total business volume, and 21.4% in international factoring volume. In addition, the company reached a total business volume of TL 19.6 billion, of which 78.5% is derived on domestic transactions and 21.5% on international transactions.

Yapı Kredi Faktoring renders factoring services across Turkey through its HQ in İstanbul and its branches in Adana, Ankara, Antalya, Beyoğlu, Bursa, Güneflli, Izmir, Kad›köy and Kartal. In 2019, Yapı Kredi Faktoring kept diversifying its funding sources to provide financing to its customers at a more affordable rate. Its close relationship with the nationwide sales and service network of Yapı Kredi Bank and the synergy created represent Yapı Kredi Faktoring’s most important service and competitive advantages.

In 2019, Yapı Kredi Faktoring took the second spot in the list of “Best Factoring Companies in Turkey” by Capital, one of the most prestigious economy magazines. Since 2002, Yapı Kredi Faktoring has ranked among the top companies in the Factors Chain International’s Best Export Factoring Company index worldwide. In 2019, the Company was ranked third with its service assessed to be “excellent”. Yapı Kredi Faktoring is also a full member of the Amsterdam-based FCI, as well as a member of the Turkish Factoring Association.

Yapı Kredi Factoring aims to increase customer numbers and penetration in all segments in 2020, while deepening relationships with existing customers.

Yapı Kredi Bank Nederland

Yapı Kredi Bank Nederland offers a wide array of products and services in retail, corporate and private banking, with the main objective of supporting Yapı Kredi’s customer base residing abroad. Wholly owned by Yapı Kredi, the bank serves its customers out of its head office in Amsterdam.

In 2019, the bank sustained its favorable performance despite volatile and increasingly regulated market conditions. Yapı Kredi Bank Nederland offers savings and deposit products to its customers in the area of retail banking. In corporate banking, the bank provides structured commodity finance and trade finance solutions leveraging on the synergy of Yapı Kredi Group.

Yapı Kredi Bank Nederland, while continuing its trade finance activities where market conditions play a telling role, offers its corporate customers marine finance, project finance, cash management as well as Islamic banking products. In the area of correspondent banking, the bank uses the opportunities presented by money and capital markets as appropriate to its balance sheet requirements. The bank efficiently provided its internet banking service, which was initiated as a pilot project serving only a selected group of customers in 2017, to its entire customer base in 2019.

In 2020, Yapı Kredi Bank Nederland will focus on maintaining profitability at a sustainable level through due management of risks and regulatory compliance, while keeping customer satisfaction at the highest level.

Yapı Kredi Bank Azerbaijan

Yapı Kredi holds 99.80% of the shares in Yapı Kredi Bank Azerbaijan that was established in 1998. Yapı Kredi Bank Azerbaijan provides a wide range of products and services in retail and corporate banking through its nine branches located in Baku and Sumgait.

As stability-oriented reforms continued in the Azerbaijani economy in 2019, new steps were taken. At 2.2%, economic growth reached its highest level since 2014, and the country’s reserves displayed a solid increase to top GDP.

Rate cuts initiated in 2018 by the Central Bank of Azerbaijan continued in 2019. Although this move led to some decline in its basic banking revenues, Yapı Kredi Bank Azerbaijan was able to increase its profitability through adept management of its costs and NPL.

The bank successfully attained lower NPL ratios than the ones in 2018 in all segments. The bank’s cash loans expanded by 8% as at December 2019. In the same period, the bank secured 22% growth in corporate loans, thus carrying on with its contribution to the Azerbaijani economy. On the deposits side, the share of demand deposits picked up.

In the twelve months to December 2019, Yapı Kredi Bank Azerbaijan provided 14% and 19% increase in the use of Retail and Corporate Internet Banking. Commanding a high 10.38% market share in the number of credit cards as at year-end 2019, Yapı Kredi Bank Azerbaijan had 4.46% share in POS volume. In 2020, Yapı Kredi Bank Azerbaijan will continue to support the country’s economy with its high capital adequacy ratio and liquid balance sheet.

Yapı Kredi Asset Management

Commanding the sector’s leadership, Yapı Kredi Asset Management has consistently maintained its position and sustained its activities since 2002. In 2019, the company adjusted to the changing market conditions, and offered Private Pension Funds Management, Discretionary Portfolio Management and Investment Advisory services, in addition to products tailored to meet the diverse needs of its clients, as it did in previous years.

Yapı Kredi Asset Management aims to respond optimally to investors’ needs on the basis of a broad range of investment products formulated to respond to different market conditions via;

• - 24 mutual and 12 hedge funds under its management,
• - a total of 28 pension mutual funds of three different pension companies,
• - Discretionary portfolio management models in diverse asset classes and investment advisory service designed according to the needs of its 543 individual and 9 institutional clients.

Yapı Kredi Asset Management ranked third in the sector with 13.2% market share in mutual funds in 2019. On the other hand, the company has been the sector’s leader for years, when money market funds also known as qualified funds are excluded. Total assets under the company’s management are worth TL 31 billion.

Yapı Kredi Asset Management’s achievements have been crowned with a number of prestigious national and international awards. Yapı Kredi Asset Management was recognized with 9 different awards by 6 different international organizations, one of which was World Finance, including best asset management and best pension fund management awards.

In 2020, Yapı Kredi Asset Management will resolutely continue to work for delivering the highest benefits to nvestors drawing on its innovative perspective.

Yapı Kredi Invest

Yapı Kredi Invest is among Turkey’s leading investment houses with more than 20 years of experience in capital markets. As a 99.98%-owned subsidiary of Yapı Kredi, the company aims to be a one-stop shop in delivering solutions for its customers, and handles a wide array of transactions ranging from domestic and international equities to sophisticated derivative products and advisory services.

Yapı Kredi Invest continues to prioritize digital channels to develop simple and rapid solutions tailored to meet customer needs.

Remaining close to its customers to better satisfy their needs and supporting their decision-making processes with comprehensive and solid research are among the main pillars the company’s service culture.

Yapı Kredi Invest takes one of the top ranks in the sector in terms of business volume and profitability. Despite the challenging market conditions in 2019, the company kept its leadership position in equity trading and futures and options transactions in terms of volume and market share, which was captured in 2018.

In 2020, Yapı Kredi Invest will carry on with its activities in line with its sustainable growth and development target, and will offer unique and high quality products tailored to meet its customers’ needs amid evolving market conditions.

Yapı Kredi Invest’s priorities include reaching new customers and customer segments, increasing the agility of customer sales channels, and strengthening access to these channels. Attaching great importance to digital delivery channels, the company is committed to increasing the diversity of services delivered to customers through these channels, and to delivering higher quality and faster service.

Banque de Commerce et de Placements (BCP)

Established in 1963 in Switzerland and 31% of its capital held by Yapı Kredi, Banque de Commerce et de Placements (BCP) is active in structured commodity finance, wealth management, treasury and capital markets.

For nearly sixty years, BCP has been offering tailored services to its commercial, private and institutional clients. BCP enjoys a solid reputation as a top quality service provider in its fields of activity and serves an ever-growing number of customers and banks across the globe with a wide range of innovative and value-added products and services. Founded under Swiss Banking Law and Regulations, BCP is supervised by FINMA, the Swiss financial markets supervisory authority. Headquartered in Geneva, BCP also operates through its branches in Luxembourg and Dubai.

In 2019, world commodity trade volume declined due to global trade wars and protectionist economic policies. In the face of rising international economic and political uncertainties, the Bank’s risk appetite declined during the year, and the BCP turned to a controlled growth strategy as a strategical choice.

In 2019, BCP booked a net profit of CHF 31.4 million. Together with the free banking provisions, the Bank’s economic profit amounts to CHF 38.6 million. In the same period, BCP registered a RoE of 7.4%, a cost-to-income ratio of 64%, and a tier1 ratio of 15%. International commodity finance volume of BCP decreased by 6% year-over-year and was recorded as CHF 25.7 billion in 2019. Despite the flat level in economic profit, the Bank’s consistency in customer-oriented business policy has enabled BCP to increase its awareness in the commodity finance market.

Having set its strategic goal as product and geographical diversification in its main business lines, BCP intends to continue expanding its customer base while maintaining good asset quality backed by effective risk control as its top priority.

Allianz Yaşam ve Emeklilik

Allianz, one of the largest insurance companies and asset management groups in the world, serves 92 million customers with over 142 thousand employees in more than 70 countries.

As a company operating under Allianz Turkey, aiming to pioneer next-generation insurance with a focus on customer satisfaction and technology and to become a social brand improving the society’s life standards, Allianz Yaşam ve Emeklilik operates in private pension and life insurance, offering individual and corporate customers a wide range of tailored products.

Allianz became the principal shareholder of Yapı Kredi Pension on 12 July 2013 by purchasing 80% of its shares. Following the change in shareholding structure, the name of the company was changed to Allianz Yaşam ve Emeklilik on 27 September 2013.

Having remained a 20% shareholder in the company, Yapı Kredi works within the frame of a strategic cooperation with Allianz. The cooperation between the Bank and Allianz is governed by a 15-year exclusive bancassurance agreement. Accordingly, insurance and private pension products of Allianz are brought to customers through Yapı Kredi’s extensive branch network and innovative alternative delivery channels.

Yapı Kredi Cultural Activities, Arts and Publishing

Established in 1984 and wholly owned by Yapı Kredi, Yapı Kredi Cultural Activities, Arts and Publishing (YKKSY) is one of the most deep-rooted culture and art companies in Turkey. YKKSY brings important publications, cultural events and exhibitions to the society, which make valuable contributions to social development and cultural life.

Yapı Kredi Culture and Art Exhibition Halls hosted a number of exhibitions in 2019: “Orhan Pamuk: Balkon/Photos”, “Turhan Selçuk: A Retrospective”, “Halil Altındere – Abracadabra”, “Atatürk’s İstanbul Days (1927-1938)”, and “Meanwhile in the Mountains: Sagalassos”. Opened in 2019, these exhibitions received approximately 115 thousand visitors.

During the reporting period, nearly 20,000 visitors were hosted in 340 events organized in Loca, Yapı Kredi Culture and Art performance hall, and in Oda located in YKY Beyoğlu Bookstore.

Having published its 5,500th title since its establishment, Yapı Kredi Publications published 1,100 titles in 2019, 265 of them new, for a total of around 6 million books. YKKSY has planned to publish 250 new titles in 2020. Throughout the year, approximately 60 thousand students, teachers and librarians were brought together with authors and editors within the scope of 125 school and library events.

SME

Products and Services

Deposit Products, Commercial Installment Loans, Revolving Loans, Flexible Commercial Accounts, Product Bundles (Defne, Nar, Palmiye, Sedir, Çam, Dış Ticaret), POS and Merchant Services, Agricultural Loans, Cash Management Products, Commercial Credit Cards, Commercial Purchasing Cards, Corporate Mobile Banking, TARSİM (Agricultural Insurance), Verimli Kart, SME website

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Card Payment Systems

Yapı Kredi has been the leader in card payment systems since 1988 with World, its main credit card brand. The Bank further strengthens its leadership position gradually with a focus on always exceeding customer expectations and leading the sector in terms of innovation in card payment systems. In 2019, Yapı Kredi maintained its innovative approach in card payment systems and leading position in the sector with over 11.9 million credit cards. According to the 2019 Nilson Report, Yapı Kredi’s credit card program World sustained its leadership in Continental Europe and ranked the fifth largest credit card program in Europe. Globally, Yapı Kredi takes the 59th spot in terms of the size of card payment systems.

Products and Services

Worldcard, World Gold, World Platinum, Play, Taksitçi, World Eko, Opet Worldcard, Fenerbahçe Worldcard, KoçAilem Worldcard, Adios, Adios Premium, Crystal, World Business, Debit cards (TLcard, Play TLcard, Business TLcard), Desktop POS, Mobile POS, Contactless POS, ADSL POS, Cash Register POS, Virtual POS, Mail Order, World Mobile, Prepaid Cards (World Cash, Play Cash, World Cash Virtual), Mobile Payment, Payment with QR Code, Payment from Inside the Car)

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Corporate and Commercial

Yapı Kredi has positioned itself among Turkey’s leading banks in the Corporate and Commercial Banking segment with its distinguished products and services. Besides servicing a wide array of local companies, the Bank also delivers tailored services for international and multinational conglomerates. Products and services offered include project finance, cash management, foreign trade finance, corporate finance advisory, financial advisory, capital management advisory, and merger and acquisition finance under investment banking, and banking service charges management under the fees and commissions center.

Products and Services

Working Capital Loans, Letters of Guarantee, Money Transfers, Long-Term Loans, Project Finance, Direct Debit System, BANKOTM-OHES, Payment Products, Collection Products, Commercial Credit Cards, POS, Public Payments, Derivatives, Import and Export Letters of Credit, Documentary Collection, Payments, Guarantees, Import and Export Financing Products (ECAs, FC Loans, Forfaiting, Import and Prefinancing Promissory Note Avalization, T. Eximbank Credits, CBRT Credits, Corporate Finance Advisory, Financial Advisory, M&A Finance, Capital Management Advisory)

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