Dear Shareholders and Members of the Board;
QNB Finansbank reached the end of 2020, the year in which we experienced extraordinary conditions that made history, such as COVID-19, earthquakes, geopolitical risks, and downturn around the world, with a consistent growth once again.
As of 31 December 2020, the total assets of QNB Finansbank reached TL 227 billion 253 million, increasing by 25% compared to the year-end of 2019. In the same period, net loans increased by 25%, reaching TL 138 billion 719 million, while customer deposits rose by 26%, reaching TL 125 billion 976 million. Bank’s net profit for the year 2020 realized at TL 2 billion 487 million.
The equity of the Bank increased by 15%, compared to the year-end of 2019, reaching TL 19 billion 222 million, and the Bank's capital adequacy ratio was 16.4% as of 31 December 2020.
Since the beginning of the pandemic, QNB Finansbank has been among the banks taking action as quickly as possible both for ensuring the health of our employees and customers and providing solutions to the problems of the real sector.
QNB Finansbank has become the first bank to limit the number of customers inside its branches, and to adopt remote working practices with its digital and technological infrastructure, and providing top-notch banking services.
In order to support the real sector, we continued to help all industries with opportunities such as debt relief for 3 months, KOSGEB loans, return-to-business credits, and loan support packages as well as our solutions for the digitalization of SMEs in line with our Digital Bridge project.
In Turkey, the turnover limit decreased to TL 5 million for obligatory e-Invoice liability and to TL 25 million for e-Waybill as of 1 July 2020; meanwhile, we committed to providing free e-Transformation services to enterprises with the Digital Bridge project until 2022.
In May 2020, when the pandemic, as well as the chaos in the world economy, reached its peak, we upsized our syndication loan and raised USD 390 million in foreign funds with differing maturities from international banks and institutions. Thanks to these funds, we continued to increase our support to the Turkish economy.
In November 2020, we upsized our second syndication loan once again as a result of the high demand and great interest from investors. We entered into an agreement with 33 international banks from 19 countries to get a syndication loan amounting to USD 350 million in total, consisting of USD 113.5 million and EUR 200.5 million with a maturity of 367 days.
Especially, our digital banking solutions created with our technological infrastructure showed once again the superiority of our insights under the conditions of the pandemic in 2020. With our digital solutions, we quickly performed all banking services and maintained to be a pioneer for smart banking.
As one of the first activities of QNB Finansbank's initiative facilitation program, QNBEYOND, our digital assistant Q gave a new direction to the lives of 3.5 million mobile branch customers in 2019. Brought to life by QNB Finansbank, the digital assistant Q helps banking to become even smarter and easier, providing a conversational environment with financial intelligence. Q makes regular payments on behalf of our customers, while also facilitating their banking activities with its conversational abilities.
We maintained our banking activities and quick and advanced digital solutions as well as works for achieving a better and more sustainable world. QNB Finansbank signed the “CEO Statement for Renewed Global Cooperation” which was issued by the UN Global Compact as part of the United Nations’ 75th-anniversary commemoration. Attesting to its support to the United Nations and inclusive multilateralism with this Statement once again, QNB Finansbank also strengthened its commitment to the United Nations Global Compact (UNGC).
Standing by all enterprises with its comprehensive and exclusive export packages, our Bank made an agreement with the world's largest online B2B platform, AliExpress, and provided customized e-export opportunities for SMEs.
We are heading towards 2021 with our smart and efficient banking solutions shaped in line with the needs of the "new normal". With the impact of the pandemic, we witnessed the significance of our technological investments to date once again. As in other industries, the pandemic also facilitated the quick digitalization of our industry. While continuing to support our customers with banking services that provide security and speed simultaneously, we also aim to ensure human health in all processes with the developments in our digital channels.
We are leaving behind a year in which our Bank attained phenomenal successes and strong results despite all these challenges. With our applications of QNB First and QNB First Digital, we won four awards as part of the Stevie International Business Awards. Thanks to QNB First Digital, we won a Gold Stevie for "Best Use of Technology in Customer Services", a Silver Stevie for "Sales & Marketing Mobile Application", and a Bronze Stevie for "Innovative Use of Technology in Customer Services" while winning a Bronze Stevie for "Best Customer Satisfaction Strategy" with our QNB First. Still, QNB First Digital, our new Mobile Branch exclusively designed for the QNB First platform under the brand of QNB First, was awarded first place in the category of “Best Digital Strategy” at the European Customer Centricity Awards, one of the most important customer experience contests in Europe.
This year, another development making us proud was that we were named the Best Bank for SMEs in the Middle East and Eastern Europe in “2020 Awards for Excellence” by one of the world’s most prominent and prestigious financial institutions and publishing groups, Euromoney.
Enpara.com was named the best website in Turkey in the Banking & Finance category at the 18th edition of the Golden Spider Web Awards this year.
The year 2020 has shown us that we can succeed in anything if we act from our commitments and beliefs. I believe that 2021 will be a year in which our Bank will renew itself and become stronger.
Our Human Resources practices also continued to be appreciated in the international arena. As part of "The Stevie Awards for Great Employers", QNB Finansbank's Human Resources department won five Stevie Awards in total, consisting of Gold Stevie Awards for "Best Youth Employment Strategy" and "Most Innovative Talent Acquisition Program", a Silver Stevie for "Achievement in Recruitment", and Bronze Stevie Awards for "Best Talent Acquisition Process", and "Recruiting and Talent Acquisition Team of the Year".
In the "Excellence Awards" organized by Brandon Hall Groups, which select companies with the best management processes and systems around the world, QNB Finansbank won four awards in total, consisting of Gold awards for "Best Unique or Innovative Talent Acquisition Program" and "Best Unique or Innovative Talent Management Program", a Silver award for "Best Advance in High Potential Development", and a Bronze award for "Best Sourcing & Assessment Strategy", thanks to its Talent Acquisition Programs.
We also continued our coding training as part of the "Small Hands Big Dreams" Platform during COVID-19. This project was awarded once again this year: finally, it won a special award for Social Value in the awards of Turkish Capital Markets Association (TCMA), thanks to its "Small Hands Are Coding" project.
With the projects of our volunteering bankers, we won the grand award for "Best In-House Volunteer Program" in the awards ceremony organized each year by the Private Sector Volunteers Association of Turkey.
We never forget our social responsibilities as a bank. In the 5th year of the Small Hands Big Dreams platform, we reprogrammed our coding training, which we pioneered as part of social responsibility activities in Turkey, for children who had to continue their education at home during the pandemic. Around Turkey, we provided free and unlimited online platform access to children. With the "Small Hands Are Coding" project, conducted in cooperation with Habitat Association, children aged 8-12 can receive their Scratch training online via www.minikellerkodyaziyor.com.
In 2021, QNB Finansbank will continue supporting children by creating online projects that they could access from home in key areas for their future, from coding to math.
I would like to thank our bankers, clients, all of our strategic business partners, and correspondent banks who reinforce our strength as we achieve our goals.