Akbank

From Wikipedia, the free encyclopedia

Akbank T.A.Ş.

Type	Private
Founded	1948
Headquarters	Levent, Istanbul
Key people	Erol Sabancı, Chairman Zafer Kurtul, CEO
Industry	Finance and Insurance
Products	Financial Services
Revenue	2.592 million YTL
Employees	12,000(2006)
Slogan	"Turkey's innovative power." (from "Türkiye'nin yenilikçi gücü")
Website	www.akbank.com

1 History of Akbank T.A.Ş
- 1.1 Management Board & Group Executive Committee
2 Strategy
3 Recent Strategic Alliances and Acquisitions
4 References
5 External links
6 See also

[edit] History of Akbank T.A.Ş

Akbank was founded in Adana, Turkey on January 1948, originally to provide financing for the cotton producers in the Çukurova region. Growing and developing over time, the Bank opened its first branch in Istanbul in the district of Sirkeci on July 14, 1950, moving its Headquarters to Istanbul in 1954. Rapidly increasing the number of its branches, Akbank automated all banking operations in 1963. The Bank’s first international representative office was opened in Frankfurt, Germany. The first Turkish private sector bank to be established abroad, Ak International Ltd., its name later to be changed to Sabancı Bank, was established in 1983. The Bank also established Ak Securities in 1996, Ak Investment Fund in 1998, Ak Asset Management and the Bank’s Private Banking Department in 2000 and Ak Pension Fund in 2003. Akbank expanded its international network in 2002 with the launch of Akbank NV in the Netherlands. Akbank incorporated Ak Financial Leasing in 2005. In February 2006, a decision of the Board of Directors of the Bank initiated the sale of Ak Pension Fund to the insurance company Aksigorta.

In addition to its core banking activities, Akbank also offers a wide range of retail, commercial, corporate, private banking and international trade finance services. Non-banking financial, capital market and investment services are provided by the Bank’s subsidiaries. With its use of the latest advances in technology and its staff of experienced bankers, Akbank continues to focus on providing the highest quality services to a wide-ranging private and corporate clientele.

Akbank operates through its Headquarters in Istanbul and its 13 Regional Directorates in Turkey. With a strong and extensive distribution network that includes 658 branches and 11,186 employees, Akbank provides services beyond traditional distribution channels, through its Retail and Corporate Internet Branches, its Telephone Banking Center, 1,502 ATMs, 136 BTMs, 217,198 POS terminals and the latest technology channels such as kiosks, cell phones and palm-PC platforms. In addition, a Freedom Banking Area has been set up within branch premises to allow customers to access its Internet and Telephone Banking platforms.

Akbank has a branch in Germany and one in Malta. Akbank has 100% ownership of Akbank NV established in the Netherlands and 65% of the London-based Sabancı Bank. In February 2006, a “Share Purchasing Agreement” was signed with regard to the sale of Sabancı Bank shares. Akbank, which previously owned 39.99% of the shares of Istanbul-based BNP-Ak-Dresdner Bank, acquired an additional 60% of the shares from foreign partners in 2005 thereby merging this bank to its structure.

Its strong capital base, stable deposit structure, ability to procure low-cost funding and robust growth in total assets combine to make Akbank the most profitable bank in the private sector in Turkey. At year-end 2005, Akbank’s gross profit was YTL 2,078 million (approx. US$ 1,547 million) while total assets reached YTL 52,385 million (approx. US$ 38,098 million). The capital adequacy ratio of the Bank is one of the highest in the sector at 21.4%.

Euromoney magazine selected Akbank as Turkey’s Best Bank for the seventh time in 2005.

In 2005, Akbank continued to obtain credits from overseas markets at favorable terms and the amount of these resources reached a total of US$ 5,217 million.

Some 33.7% of Akbank shares are publicly traded and listed on the Istanbul Stock Exchange (ISE). Abroad, the Bank’s Level 1 ADRs are traded on the London IOB and the OTC market in the US. As of December 31, 2005, the Bank’s market value stood at US$ 14,756 million, making it the corporation with the second highest market value on the ISE.

[edit] Management Board & Group Executive Committee

Board of Directors
Board of Directors			Executive Management
Name	Since	Position	Name	Since	Position
Erol Sabancı	1998	Chairman and Managing Director	Zafer Kurtul	1998	Director and CEO
Yaman Törüner	1998	Director	Hayri Çulhacı	1990	Executive Vice President
Akın Kozanoğlu	2000	Vice Chairman and Executive Director	Zeki Tuncay	2003	Executive Vice President
Suzan Sabancı Dinçer	1997	Managing Director	Nuri Aksoy	1996	Executive Vice President
Sir Winfried Bischoff	2007	Director	Eyüp Engin	1996	Executive Vice President
Özen Göksel	2000	Managing Director	Ziya Akkurt	1997	Executive Vice President

[edit] Strategy

Akbank's mission is to contribute to the development of the Turkish economy and the Turkish financial system by providing high-quality, specialized banking products and services that are innovative and comprehensive. Turkey’s most profitable privately owned bank

-Credit rating above sovereign rating

-658 branches located throughout the country

-An extensive and stable funding base

-A wide-ranging customer portfolio with the ability to attract new customers

-A robust capital structure and a high capital adequacy ratio of 21.4%

-A diversified loan portfolio with a low NPL ratio of 1.59%

[edit] Recent Strategic Alliances and Acquisitions

Citigroup and Akbank announced that, following receipt of all required regulatory approvals, the parties have successfully completed the acquisition by Citigroup of a 20% stake in Akbank. Under the terms of their agreement announced on October 17, 2006, Citigroup has acquired a 20% equity stake in Akbank for approximately $3.1 billion, at a price of 9.50 Yeni Kurus (YKr) per share.

Citigroup obtained its shares in Akbank through (a) the purchase of shares equal to approximately 11.67% of the fully diluted capital of Akbank from Sabanci family members and Sabanci Holding subsidiaries at 9.50 YKr per share and (b) the issuance of new Akbank shares, equal to 8.33% of Akbank’s fully paid up capital, at the same price through a reserved capital increase in favor of Citigroup. The parties’ rights of first refusal or first offer under the agreements become effective at the closing.

In addition, pursuant to the terms of their agreement, Citigroup’s nominee, Sir Winfried Bischoff, has been appointed to Akbank’s Board of Directors, and Mr. Ege Çağlar, Sabanci Holding’s nominee, has been appointed to the Board of Directors of Citigroup's Turkish banking subsidiary, Citibank A.S.

The agreement establishes a strategic collaboration between Citigroup and Akbank to pursue new commercial activities, referral arrangements and to share expertise and technology. Through its strategic investment Citigroup offers Akbank access to Citigroup’s know-how in world-class product innovation, most advanced credit risk management practices and top quality management training programs, which are expected to strengthen Akbank’s performance and accelerate its growth in both retail corporate and investment banking business lines.