Türk Eximbank continued to support Turkish exporters with credit and credit insurance facilities in 2022. In the reporting period, the Bank’s total support amounted to USD 45 billion. The Bank extended loans worth USD 19.6 billion, of which USD 1.7 billion is medium- and long-term credits. On the other hand, the Bank’s credit insurance/reinsurance support amounted to USD 25.3 billion.
Türk Eximbank’s paid-in capital as at year-end 2022 was increased by TL 3 billion, which is to be paid in cash by the Republic of Türkiye Ministry of Treasury and Finance, and went up from TL 10.8 billion to TL 13.8 billion.
Currently serving through 23 branches and 11 liaison offices, the Bank’s active credit customers reached 11,976. The number of active insured exporters, on the other hand, reached 6,214. Hence, the total number of customers increased by 10% to 15,440; of these firms, 81% are SMEs.
An overview of 2022 activities…
2022 was dominated by a series of records broken in exports, with volatility and stagnation expectations characterizing global trade. In 2022, during which our country’s exportation also renewed record, Türk Eximbank’s insured shipment volume in particular kept growing on a year-on-year basis. The fluctuations in CBRT-sourced credits were striven to be compensated with credits funded by Türk Eximbank and by credits secured from international fund institutions.
Rediscount credits disbursed under the Pre-Shipment and Post-Shipment Rediscount Credit programs amounted to USD 14.2 billion, which accounted for 79% of the Bank’s total loan volume. The balance of the said fund reached USD 8.4 billion as of 31 December 2022.
The loans disbursed under International Loans Programs in 2022 amounted to USD 158.6 million, and 26 letters of intent were issued in favor of Turkish companies for projects/export deals to be carried out in 18 countries with goods and services export potential worth USD 2.6 billion. Within the scope of the Ministry of Trade’s Commercial Interest Reference Rate (CIRR) support for trade finance transactions, the Bank continued to provide competitive financing options at CIRR to buyers of our exporters with the aim of promoting the exports of high value-added investment goods from our country. Within the scope of CIRR Interest Support, a total of loans worth USD 2.2 million was extended in 2022.
During the reporting period, shipments worth USD 25.3 billion were covered under Receivable Insurance Programs, with Short-Term Export Credit Insurance representing 90% of it. While premiums collected totaled USD 70 million under the said programs, claims paid amounted to USD 25.4 million.
Developments in Existing Products Aligned with Exporters’ Needs…
Besides increasing the supports in 2022, developments and updates were undertaken to offer better solutions to our exporters’ demands with our existing products. In this framework;
- Designed to indemnify direct production costs that exporters incur during the manufacturing process in the event of an order cancellation, Pre-Shipment Risk Policy was revised. The said revision enables providing insurance coverage for pre-shipment production costs of shipments, whose post-shipment period will be covered under the said Policy’s Short-Term Export Credit Insurance and Medium & Long-Term Export Credit Insurance Policy.
- Policy wording was drafted for Participation-Based Receivable Insurance Program, and work for systemic improvements was initiated.
- Overseas Contracting Services Political Risk Policy was revised.
- Term options and amounts per transaction that an application can be filed for were updated in the Preshipment Export Credits programs.
- Under the protocol signed by and between İhracatı Geliştirme A.Ş. (İGE) and our Bank, guarantee support was provided to SME/non-SME companies with İGE equity guarantee.
- A protocol was signed by and between the Ministry of Trade, Türk Eximbank and İhracatı Geliştirme A.Ş. (İGE) in relation to Prefinance Support Package.
- Bank-sourced Post-Shipment Rediscount Credit started to be disbursed.
- Swap-Based Rediscount Credit was put into use, which is disbursed based on the swap agreement made by and between the central banks of the People’s Republic of China, Republic of Korea, United Arab Emirates and Qatar and the Central Bank of the Republic of Türkiye (CBRT) to be utilized for payments associated with the financing of commercial activities between the Republic of Türkiye and the countries mentioned above and which is significant in terms of supporting trade in local currencies.
- Manufacturing Credit for Exporters Program was introduced, which will be disbursed by our Bank against exportation commitment within the scope of specific funds supplied from overseas financial institutions or export credit agencies with the purpose of fulfilling export preparation and/or investment finance needs of manufacturers and manufacturer/exporter firms producing export-oriented goods in an effort to increase their competitive strength in international markets.
- A procedure was drafted for managing the difference between the types of credit FC and collateral FC. The first transaction has been performed within the scope of the pilot run.
Obtaining Funds for Low-Cost Financing Available in Various Terms to our Exporters…
In 2022, Türk Eximbank secured funds in the amount of USD 2.2 billion from international markets and an additional USD 1.2 billion within the scope of funding from treasury transactions (repurchase agreements, TRS, currency swaps, borrowings) and kept offering low-cost financing facilities with various maturities from its fund stock maintained at USD 7.9 billion level, excluding CBRT funds. The Bank’s total fund stock including TL credits and including the CBRT rediscount facility of USD 8.8 billion was registered in the order of USD 16.9 billion.
Processes Accelerated and Facilitated through Digitalization…
As Türk Eximbank simplified and accelerated its processes with a digital focus, it gave exporters easier access to the Bank’s products and services. Steps were taken that enhanced service quality, and the number of documents required for filing applications was decreased as the application processing durations were shortened.
In this framework, web application screen made available to exporters in 2022 allows applications to be received digitally. Pilot work processes were digitized using Robotic Process Automation (RPA) tool. Furthermore, work was initiated to update the design and infrastructure of the Internet Branch and Mobile Branch.
Important Moves, Strong Bonds in International Partnerships…
Türk Eximbank attaches special importance to establishing new partnerships and to strengthening the existing bonds of cooperation in order to maximize the support it lends and to help increase the competitiveness of Turkish exporters and contractors in the international arena.
In 2022, work continued to add new ones to the reinsurance agreements signed in earlier years with USEXIM (USA), UKEF (UK), BPIFrance (France), EKF (Denmark), OeKB (Austria), MEHIB (Hungary) and EKN (Sweden) to enable co-financing of projects that Turkish exporters and contracting firms will undertake in third countries in cooperation with foreign firms, and thus, contribute to increase their competitiveness.
Efforts were carried on for signing memoranda of understanding (MoU) that will take our existing relations with our foreign counterparts further and pave the way for comprehensive and quality collaborations. In 2022, Memoranda of Understanding (MoU) were signed for general cooperation and cooperation in third countries with SERV (Switzerland), ETIHAD (United Arab Emirates) and Saudi Exim (Saudi Arabia).
We Added Pace to our Sustainability Activities…
ISO 14064:2018 Greenhouse Gas Accounting audit related to our operational impact in 2021 was successfully completed within the scope of Sustainability Activities.
ISO 14064 certification, which will serve as an important endorsement of our Bank’s capability in relation to sustainability in various aspects including the Sustainability Report, sustainability-linked syndicated loans, alternative sustainable financing sources and funding, has been obtained from Bureau Veritas, an international certification agency.
With this certification, Türk Eximbank;
- Pledged to align itself with climate-change related developments to our internal and external stakeholders,
- Evidenced and acknowledged ownership of our emissions,
- Increased institutional capacity in environmental and social terms.
Explanations about Türk Eximbank’s Balance Sheet and Profit & Loss Statement
Türk Eximbank’s balance sheet size reached TL 346 billion (USD 18.6 billion) as at 31 December 2022.
Türk Eximbank’s assets are composed of credits by 88%, liquid assets by 4%, and financial assets measured at amortized cost and, derivative financial assets and other assets by 4%.
The Bank’s loan portfolio reached TL 305.6 billion, up by 6% in the twelve months to end-December 2021. Of the total credits, 60.5% (TL 184.4 billion) are short-term credits and 39.5% (TL 121.2 billion) are medium- and long-term credits. Although a substantial portion of the Bank’s funds are channeled to the exports industry in the form of credits, the ratio of non-performing loans (NPL) (TL 0.6 billion) to total loans is well below the sector’s average and stands at 0.2%. Through effective risk assessment methods pursued, Türk Eximbank works arduously to timely and fully collect its credits.
Türk Eximbank’s total liabilities were worth TL 346 billion. Of these, 7% (TL 23.8 billion) consisted of shareholders’ equity, 91% (TL 316.6 billion) of external funds, and 2% (TL 5.6 billion) of provisions and other liabilities.
Out of the Bank’s shareholders’ equity of TL 23.8 billion, 58% (TL 13.8 billion) pertains to paid-in capital, 16% (TL 3.8 billion) to capital and profit reserves, and 26% (TL 6.2 billion) to net profit for the period.
TL 315.1 billion of foreign resources used for funding the Bank’s assets consisted of TL 164.4 billion in credits sourced by the CBRT, TL 102.5 billion in credits provided from domestic and foreign banks and borrowings from money markets, TL 41.7 billion in marketable securities issued, and TL 6.5 billion in subordinated loans.
At the Ordinary General Assembly convened on 14 March 2022, the authorized capital was increased to TL 30 billion. The Bank’s paid-in capital is TL 13.8 billion as of 31 December 2022.
The ratio of Türk Eximbank’s liquid assets including short term loans to short-term liabilities was registered as 95.0% as of 31 December 2022.
The credit-weighted composition of Türk Eximbank’s balance sheet bears effects also on income.
The Bank's total interest income is TL 17 billion, of which 87% (TL 15 billion) is interest received from loans. On the other hand, the Bank’s interest expense was TL 11.5 billion since the Bank secures funds by way of borrowing from domestic and international money and capital markets and through bond issuances. Of this amount, 69% (TL 8 billion) was interest paid on borrowings from domestic and international markets, and 28% (TL 3.2 billion) was interest paid on marketable securities.
The Bank booked a net profit of TL 6.2 billion for the period ended as of 31 December 2022. Therefore, the Bank registered return on assets and return on equity ratios of 1.86% and 43.04%, respectively.
The Bank carries out its operations in accordance with the legislation governing it and the provisions of its Articles of Association, and we hereby present our summary report pertaining for the period ended 31 December 2022 for your review.
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Murat ZAMAN
Chairman |
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Rıza Tuna TURAGAY
Deputy Chairman |
Ali GÜNEY
Member |
Nail OLPAK
Member |
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Mustafa GÜLTEPE
Member |
Fahriye Alev ARKAN
Member |
Mehmet Esat MERT
Member |
