After growing rapidly in the first two quarters of 2016, the Turkish economy registered 2.2% growth over the course of the first nine months of the year.

2,2%

Dear Stakeholders,

Before presenting for your approval the annual report, financial statements and net profit distribution proposal, which provide a summary of the 2016 performance of İş Leasing and which have been drawn up in accordance with the Capital Market Law and applicable legislation, I would like to share our opinion regarding the developments in the world and national economy, the risks and opportunities facing the leasing sector, and achievements of İş Leasing.

In 2016, low growth persisted in global economy, geopolitical risks in our near geography began to come to life, and Turkey’s macroeconomic balances were negatively affected by the extraordinary events that stemmed from domestic dynamics.

LEASING VOLUME CONTRACTED BY 4% ANNUALLY AND STOOD AT USD 6.1 BILLION.

USD 6.1

BILLION

Despite the expansionary monetary policies that have long been in place on a global scale, country economies have yet to recapture the strong growth tendencies they have exhibited before 2008. After growing rapidly in the first two quarters of 2016, the Turkish economy registered 2.2% growth over the course of the first nine months of the year due to the political developments that took place in the summer months and the contraction in tourism. With the support of the relief measures introduced in the last quarter of the year coupled with public outlays, it is anticipated that 2016 will be closed with a growth rate in the order of 2.5% -3.0%.

The Turkish lira depreciated against the currencies of developed countries particularly in the second half of 2016 due to the external and internal developments, and as a result, investment demand by the private sector and the business volume of our sector shrank. In 2016, the overall sector’s new leasing volume stood at USD 6.1 billion, down by 4% on an annual basis.

Despite the volatile economic environment and the pressure the rising exchange rates put on our sector, İş Leasing was able to expand its business volume at a rate that outdid the sector’s average thanks to the proactive sales policies pursued, the accurately formed mix of delivery channels, and risk-sensitive credit management. Preserving its financial structure amid a climate of intense competition, İş Leasing will continue to consolidate its strong position also in the years ahead.

I would like to take this opportunity to thank, on behalf of the Board of Directors and myself, all our stakeholders who made our 2016 performance possible.

Murat Bilgiç
Chairman of the Board of Directors