Ziraat Bank’s Mid-Year Performance: Asset Expansion, Agricultural Lending and Digital Push

Ziraat Bank posted a TL 74.2 billion net profit for the first half of 2024, maintaining an TL 9.1 trillion asset base while expanding its loan portfolio to TL 7 trillion.

Asset Balance Sheet Hits New Heights

The bank’s balance sheet growth ranks among the fastest in the sector, driven by a broad deposit base and a resilient external funding strategy.

■TL 9.1 trillion total assets, up 3.2% YoY.

■Deposit base exceeds TL 5.7 trillion, cushioning liquidity risk.

■External funding position remains stable despite global uncertainties.

Strategic Moves in Agricultural Lending

Agriculture remains at the core of Ziraat’s mission. In H1 2024, agricultural loans reached TL 1 trillion, directly supporting rural development.

■TL 1 trillion agricultural loan volume, a 12% increase YoY.

■Targeted programs for women and young farmers account for 14% of total loan volume.

■66% of loans are denominated in Turkish Lira, anchoring the portfolio against currency risk.

Digital Customer Reach and Mobile Banking

The bank’s digital transformation is reflected in 26 million active mobile banking users, creating a new source of revenue and cost efficiency.

■26 million mobile users reduced traditional branch visits by 18%.

■Expanded product suite delivered 22% higher customer satisfaction.

■Average loan approval time via digital channels stands at 3 business days.

Macro‑Economic Framework: Liquidity and Risk Management

Under the Medium‑Term Program (MTP) and a selective credit policy, the bank improves its risk profile while sustaining growth. The delinquency rate sits at 1.9%, well below the industry average.

■1.9% delinquency rate, compared to the sector average of 4.3%.

■TL‑denominated loans represent 66% of total loan book, limiting FX exposure.

■Liquidity ratio stands at 23.5%, meeting Basel III requirements.

Kerem Tufan – Director of Commercial Loans and Central Bank Policies: Ziraat Bank’s performance aligns with Turkey’s quest for macro‑economic stability in the credit market. The combination of asset growth and loan expansion, especially in strategic sectors like agriculture, underscores the sustainability of loan volume growth and effective risk management. Nonetheless, rising external funding costs and tightening monetary policy could pressure profitability; therefore, the bank’s focus on strengthening equity and further leveraging digital channels is crucial.