MEHMET KARAKILIÇ
CEO AND MEMBER OF THE BOARD OF DIRECTORS
HEALTHY GROWTH
UNCOMPROMISING FROM ITS HEALTHY AND SUSTAINABLE GROWTH STRATEGIES, İŞ LEASING MAINTAINS ITS SECTORALLY AND GEOGRAPHICALLY WELL-BALANCED AND BROAD-BASED PORTFOLIO IN 2019.
IN 2019, İŞ LEASING HAS BEEN THE MOST PREFERRED COMPANY IN ITS INDUSTRY.
Slowdown in global economy and economic activity in 2019, coupled with the negative market conditions in our country, suppressed domestic demand and caused significant postponement of investment decisions. The leasing sector was adversely affected by the conjuncture as funding hardships stemming from liquidity crunch were added on top of contracted investment demands; the transaction volume of the overall industry shrank by 46.7% and went down to USD 2.6 billion in 2019.
Uncompromising from its healthy and sustainable growth strategies, İş Leasing maintained its sectorally and geographically well-balanced and broad-based portfolio and financed the investments of a wide customer portfolio constituted mainly by SMEs, based on a prudent and selective financing policy in 2019.
Having generated a transaction volume of USD 356 million in 2019, İş Leasing further strengthened its position in the sector with the 13.9% market share it has captured. The Company reinforced its customer base with its smart business processes delivering fast and effective solutions and its distinctive service quality, and increased its market share in terms of the number of customers to 12.2%.
Our Company’s financial lease receivables in the amount of TL 5.1 billion are made up of loans extended for heavy-duty and construction machinery by 15.3%, and other machinery and equipment by 24%. The total share of 39.3% held by machinery and equipment is followed by receivables on real estate with 26.7%.
Shareholders’ equity of our Company grew by 10.7% to TL 1.3 billion in 2019, while consolidated net income has been realized as TL 84 million. Through effective credit risk management, and technology-driven advanced techniques implemented, İş Leasing’s non-performing leasing receivables ratio continued to remain significantly below the industry average and stood at 6.3%.
In 2019, having issued bonds and private sector bills worth TL 3.4 billion within its bond issuance limit of TL 4.6 billion approved by the Capital Markets Board of Turkey (CMB), İş Leasing diversified its funding sources by securing new financing in the amount of USD 388 million from prestigious credit agencies in Turkey and abroad thanks to its credibility in the national and global arena.
İŞ LEASING FURTHER CONSOLIDATED ITS PIONEERING STANCE IN RENEWABLE ENERGY FINANCE.
Continuing to consolidate its pioneering stance in the sector with respect to renewable energy finance, İş Leasing kept funding the installation of solar power plants in 2019. Entering into collaboration agreements and developing projects with experienced companies engaged in this area, İş Leasing offers payment options that are aligned with the companies’ cash flows through leasing.
INVESTMENT IN THE DIGITAL SHAPES OUR FUTURE.
Offering service via its 15 branches located in regions and cities getting the highest share of GDP, İş Leasing boasts one of the greatest number of branches in the sector and thus enjoys a high customer reach through its own branches and the extensive branch network of İşbank. Acting with the strategy of increasing its presence on digital platforms rather than pursuing organic expansion, our Company carries out digital transformation projects targeting improvement of business processes with the goal of enhancing operational efficiency and delivering a better customer experience. İş Leasing intends to finalize its digitalization projects substantially in the near future, and we will press ahead with our investments aimed at attaining higher efficiency.
IN 2020…
In 2020, the positive impact economic rebalancing and recovery process has on the markets and new investments is anticipated to become more pronounced. In the leasing industry where competition mainly takes place in SME financing, commercial and corporate companies of higher scale are kept under close watch along with the SMEs, with the target of getting a higher share from the investments of these companies.
In the period ahead, our main areas of focus with respect to new customer acquisition will be companies that invest with a focus on exports and the renewable energy sector, particularly the financing of solar power plants.
Despite anticipated intensified competition and relative contraction in interest rate margins, we are expecting İş Leasing to substantially preserve its new transaction volume market share gains in the last three years by increasing collaborations with vendors, the synergy captured with İşbank branches, and the activities in direct marketing channels.
We are determined to support our profitable growth, and take it further, through new initiatives in 2020. While our high-quality balance sheet structure will remain as a focal point we will strictly maintain, we will continue to manage the leverage that our shareholders’ equity and our solid and diversified funding base present us with by adopting the correct and risk-averse approach.
Sincerely,
Mehmet Karakılıç
CEO and Member of the Board of Directors
