WE WILL CONTINUE TO USE EVERY MEANS AVAILABLE TO PROVIDE RESOURCES FROM BOTH TURKEY AND ABROAD TO FINANCE INVESTMENTS OF COMPANIES FROM VARIOUS SECTORS -ESPECIALLY EXPORTERS- WITH STRONG CASH FLOWS, AND SUPPORT OUR ECONOMY IN THE FOLLOWING PERIOD.

Despite the slowdown in global economy, growth continued in 2018. However, geopolitical risks, particularly around Middle East, increased its negative impact on risk perception of investors. While global negative conditions, particularly trade wars, had its reflections on financial markets, in Turkey exchange rate attack and interest rate hikes which started in August caused a decrease in capital expenditures and demand and had unfavorable impact on our industry. Transaction volume in leasing sector has been realized as USD 4.8 billion in 2018, indicating a 23% decrease.

İş Leasing has completed 2018 with a performance in line with the budget. As a result of adopting a lending policy which is focused on asset quality and monitoring a broad-based risk, our company financed customers from various segments and industries, specifically SMEs.

İş Leasing has realized a new transaction volume of USD 532 million in 2018 and strengthened its strong position in the sector with a market share of 11.1% from these new transactions.

Our financial lease receivables, which are mainly composed of heavy duty and construction machinery, metal processing, textile and energy sectors, increased by 15.6% YoY and reached TL 5.4 billion. Shareholders’ equity of our company grew by 18% to TL 1.2 billion. Consolidated net income has been realized as TL 197.5 million and ROE has been 18.6%.

Thanks to our attentive credit risk management, our non performing leasing receivables ratio continued to remain below industry average and stood at 4.76%.

In 2018, having issued bonds and private sector bills worth TL 3.9 billion within its bond issuance limit of TL 3.5 billion approved by the Capital Markets Board of Turkey (CMB), İş Leasing diversified its funding sources by securing new financing in the aggregate amount of USD 332 million from prestigious credit agencies in Turkey and abroad, including a USD 80 million syndication loan obtained in the first quarter of the year.

In 2019, we anticipate that industry participants will focus more on maintaining asset quality and overcoming the difficulties in long term resource supply, rather than improving customer and new business transactions, given the fact that investment climate will not be very supportive for the growth of our industry.

Maintaining a well-balanced funding composition, we will continue to use every means available to provide resources from both Turkey and abroad to finance investments of financially stable companies from various sectors, -especially exporters- with strong cash flows, and support our economy in the following period.

Our company will pursue adopting is business plan maintaining its new transaction volume market share gains in the last 3 years, collaborating with vendors, increasing the synergy obtained with the branches of Türkiye İş Bankası and activities in direct marketing channels with an aim to increase market share.

As the leading representative of the industry, I am confident that we will reach our targets taking strong and firm steps.

I would like to pay my respects and thank our Board of Directors, employees, our business partners and investors whom I believe will always be with us reaching our goals.

Mehmet Karakılıç
CEO and Member of the Board of Directors