ICBC Turkey - Company of the Year - Financial Services

Company: ICBC Turkey
Company Description: ICBC Turkey Bank AS provides banking and financial services. It offers banking services to corporate, commercial, small and medium enterprise and individual clients, as well as provides fund management transactions, such as foreign currency, money market, and securities trading. The company was founded on April 29, 1986 and is headquartered in Istanbul, Turkey.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Company of the Year - Financial Services - Medium-size

Nomination Title: ICBC Turkey

Industrial and CommercialBank of China (ICBC) Turkey has taken wings as a financial services enabler of massive cross-border infrastructure projects to be reckoned with.

HISTORY – PAST PERFORMANCE

Turkey began her journey of integrating into global financial markets around the time ICBC launched in China.Turkish residents were allowed to open foreign currency accounts in banks, increasing product variety and services. This process culminated in the opening up of capital accounts in 1989, further facilitating international trade in goods and financial services.

No foreign bank had a leadership position in carving the gateway between Turkey and Asia – especially to fund key infrastructure projects.

ICBC acquiredTurkey’s Tekstil Bank in 2015and quickly became the fastest-growing of the few foreign banks to open its doors in Turkey.

Having found its niche in large corporates and China-Turkey trade, ICBC channeled funding into massive projects and companies in Turkey that would create the highest value addition.Large project financing and cross-border RMB transactions became its hallmark.

ACHIEVEMENTS

The global pandemic impacted China and Turkey. The Turkish economy spiraled

-16% inflation
-20% depreciation of the Turkish lira
-Tourism evaporated
-Exports decreased
-Gold imports increased
-Foreign direct investment declined

The bank’s exposure to the troubled energy sector, which comprised 25% of gross loans and obligations of FC holding 24 of the bank’s largest loans (75% of gross loans) were a source of consternation.

While blessed by the backing of its parent bank to address the impact of the pandemic on the Turkish economy and the Turkish banking sector,ICBC still was able to service its obligations.

ICBC’s success lay in mitigating credit risk due to its focus on high quality corporate borrowers and Turkish government securities, including a robust 43.7% growth in TL loans (2020-2021)

ICBC also achieved the Turkish banking sector’s highest rate in loan and profit growth, furthersetting it apart from its competitors.

Of note is the Belt and Road Initiative (BRI) that upholds the principles of extensive consultation, joint contribution, and shared benefits. To build the “Belt and Road," ICBC Turkey provided funds to key projects and companies especially in port management.

Today, ICBC Turkey has transformed into a regional financial powerhouse:

- Fully owned subsidiaries:ICBC Turkey Securities, ICBC Turkey Portfolio management providing investment banking and fund management services
- 26.6 billion Turkish lira in consolidated assets as of March 2021
- 36% asset growth in 2020; 6% in Q1 2021, beating the sector average

SIGNIFICANCE/UNIQUENESS OF ACHIEVEMENTS

Despite the catastrophic environment resulting from the Covid 19 pandemic, ICBC Turkey has completed over 13 infrastructure projects totaling over 5.390 million EUR in a few short years, rapidly penetrating Turkish and surrounding countries’ project finance markets.

Numerous awards and citations attest to the competitive market reaction to ICBC’s performance and profitability:

-Best Commercial and Investment Bank in Turkey by International Banker Magazine
-Most innovative Brokerage House by International Finance Magazine
-Leader of Financial Intermediation Transactions by Turkish Capital Market Association
-EMEA Finance - Project Finance Awards
-Award of Excellence - Overseas Institution by ICBC Group

Today, largely thanks to ICBC’s role in Turkish banking,

-China has become Turkey's third-largest trade partner and second-largest importing country
-Turkey’s position as a key market for foreign investment of Chinese public contracting companies has increased massively

Through the historically difficult times during the past four years, ICBC Turkey has achieved a48.4%profit growth annually, versus14.5%for the Turkish banking sector.

According to the long-term commercial target between China and Turkey, total trade volume is targeted to exceed USD100 billion in 2020-1. The integration of the systemic infrastructure between China and Turkey will accelerate trade.

The use of cash management products commonly used in ICBC China will also be realized in Turkey.

DOCUMENTATION

-Europe Infrastructure Projects PPT - Depicting major financing projects
-Infrastructure Finance Projects – Top 11: Outlining type and scope of biggest financing projects
-Securities Infrastructure: Illustrating majorproject recently undertaken

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