TL 515.3 Billion
Ziraat Katılım increased its total assets by 34% compared to the previous year, reaching TL 515.3 billion.
TL 22.4 Billion
With its robust capital and partnership structure, Ziraat Katılım has achieved sustainable success. Its equity grew by 13% in 2024, climbing to TL 22.4 billion.
Several critical factors shaped the global economic landscape in 2024. The decline in inflation rates across developed nations, the ongoing Russia-Ukraine conflict, escalating tensions in the Middle East, and the U.S. Presidential election have all played significant roles. As inflation trends toward targeted ranges, it is apparent that tight monetary policies are gradually easing. Central banks have begun reducing interest rates, while geopolitical uncertainties have fueled demand for safe-haven assets, increasing gold prices.
Last year, in line with inflation data, the U.S. initiated an interest rate cut that exceeded market expectations to ease its monetary policy. This was followed by a cycle of rate reductions, bringing the policy rate to a range of 4.25-4.50%, in line with market expectations. The U.S. Federal Reserve (Fed)’s roadmap is widely viewed as being most influenced by the policies implemented by the new President. It is anticipated that the policies planned by the new administration will result in a slower-than-expected achievement of the inflation target. The Fed’s recent statements signaling a downward revision in anticipated rate cuts for 2025 further reinforce these expectations.
Due to the European Central Bank (ECB)’s tight monetary policy stance, significant progress has been made toward achieving the Eurozone’s inflation target of 2%. While inflation in the Eurozone is expected to remain within the target range in the coming period, the ECB has reduced its main refinancing rate from 4.50% to 3.15% over the year. However, potential headwinds from U.S. economic and security policies, along with prevailing geopolitical risks, may pose challenges for the European economy moving forward.
In emerging market economies, 2024 was marked by efforts to stimulate real economic activity. Starting from the end of third quarter 2024, the Chinese economy began to show signs of recovery, driven by a comprehensive stimulus package implemented to support growth. China’s government is expected to continue supporting economic growth in 2025 by further lowering interest rates and bank reserve requirements and by providing additional financial support measures. Despite these developments, the potential emergence of a trade dispute with the United States continues to cast uncertainty over China’s growth outlook.
In 2024, the positive impact of monetary and fiscal policies in Türkiye brought inflation risks and expectations under control, and the disinflation process was carried out with determination. As the inflation rate decreased, inflation expectations continued to improve. The announced inflation figures were consistent with the Central Bank of the Republic of Türkiye (CBRT)’s Inflation Report. In its final meeting of the year, the CBRT lowered the policy interest rate by 250 basis points to 47.5%.
Consequently, Türkiye’s current account balance posted a surplus on a monthly basis between June and October, and the country’s CDS risk premium declined. Taking the positive developments in the economy into account, international credit rating agencies upgraded Türkiye’s credit rating twice during the year.
In 2024, a notable decrease in dollarization was observed, driven by higher demand for the Turkish Lira (TL) from savers and a larger share of TL in bank balance sheets. Macroprudential measures and monetary policy supported this shift. Regulations shaping credit composition have had a favorable impact, particularly in boosting production, investment, and exports. Looking ahead to 2025, macroeconomic indicators are expected to continue improving, with inflation easing, interest rates declining, and normalization efforts persisting. The reduction in financing costs will positively impact both the real sector and banks’ profitability.
By the end of 2024, participation banking’s share within the financial sector had reached 8.14%. Maintaining this positive performance is crucial for deepening our country’s financial system and enhancing its resilience against risk.
Ziraat Katılım’s share of the participation banking sector was 19% in 2024. While the financing to total assets ratio in the participation banking sector stood at 49.5%, this ratio was approximately 62.4% for our Bank.
Compared to the end of 2023, Ziraat Katılım has increased financing by around 22%. Our Bank has also expanded its branch network to diversify participation banking products and services while reaching every corner of the country. As a result, the Bank’s branch count grew from 189 at the end of 2023 to 208 by the end of 2024, a significant achievement we are proud to report. Ziraat Katılım remains committed to supporting the Turkish economy through a customer-centric approach, aligning with our core principles of profitability and efficiency.
Sustainability and Climate Change Perspective
The global economy and financial sector are increasingly confronting the profound effects of the climate crisis. While this crisis poses significant long-term risks, it also urgently requires a comprehensive transformation, particularly in carbon-intensive industries, over the short and medium term. In response to evolving regulations and rising stakeholder expectations, the financial sector is strengthening collaborations to support this transformation and capitalize on the emerging opportunities. Banks are serving as key enablers of the green transition in the real economy, guiding investments that prioritize financial growth and integrate environmental and social considerations.
The sustainable bond market further expanded in 2024. Compared to 2023, sustainability-themed issuances grew by 5%, reaching USD 1.1 trillion in 2024. Green bonds, accounting for 57% of all sustainability-labeled issuances, continue to dominate the market. Given the positive macroeconomic outlook, the issuance of sustainability-focused bonds is expected to uptrend further through 2025.
Türkiye has actively embraced the green transformation with its Green Deal Action Plan and its 2053 carbon-neutral target. At the 29th Conference of the Parties (COP29) held in Baku in November 2024, Türkiye outlined its climate roadmap. The banking sector is pivotal in achieving these ambitious goals and supporting the country’s climate agenda.
Ziraat Katılım, built on participation banking principles and responsible investment, has integrated sustainability into its core strategies. By incorporating climate considerations into our risk management and climate strategy, we are committed to advancing sustainable finance.
Our progress in realizing our goals is powered by the invaluable support of our stakeholders and the dedication of our employees.
Against this backdrop, it is with great pride and excitement that I present to you the 1st Integrated Annual Report of Ziraat Katılım for 2024.
Together with the Board of Directors, I extend my heartfelt thanks to all our employees whose hard work and dedication have driven our success.
Alpaslan ÇAKAR
Chairman of the Board of Directors
Integrated Annual Report of Ziraat Katılım Bank covers the period from January 1, 2024 to December 31, 2024.
You can share your feedback and suggestions regarding the Ziraat Katılım Bank A.Ş. 2024 Integrated Annual Report via email.
