Akbank was founded as a privately-owned commercial bank in Adana on January 30, 1948. Established originally with the core objective to provide funding to local cotton growers, the Bank opened its first branch in the Sirkeci district of Istanbul on July 14, 1950. In 1954, after relocating its Head Office to Istanbul, the Bank rapidly expanded its branch network and had automated all banking operations by 1963.
Floated to the public in 1990, Akbank shares began trading on international markets and as an American Depository Receipt (ADR) after its secondary public offering in 1998.
Akbank’s main operations are corporate – investment and private banking, commercial banking, SME banking, retail banking, payment systems and treasury transactions and international banking services. In addition to traditional banking activities, the Bank’s branches provide insurance brokerage services on behalf of Aksigorta A.Ş. and Avivasa Emeklilik ve Hayat A.Ş.
Conducting its activities via the Head Office in Istanbul and 22 regional offices across the country, Akbank has a strong, extensive distribution network composed of 840 branches and approximately 14 thousand employees in Turkey. Aside from the conventional distribution branch channel, Akbank delivers services to over 15 million clients via Akbank Direkt Internet, Akbank Direkt Mobile, Call Center, about 4,200 ATMs, over 460 thousand POS terminals and other high-tech channels.
As a pioneering leader in the field of digital banking in Turkey, Akbank Direkt serves the needs of customers at the most convenient points of contact with the best customer experience. While today’s technology goes ahead at full throttle and the needs of customers increase rapidly, Akbank Direkt serves customer needs without the limitation of time and location. Akbank Direkt is also a pioneer in introducing cutting edge technologies to the industry and Turkey.
To this end, by foreseeing the changes in trends and customer dynamics, Akbank develops new products and channels customized to meet clients’ financial needs, rolling out groundbreaking innovations to the Turkish banking sector. While the bank launched such pioneering offerings as Büyük Kırmızı Ev (Big Red House) and iPad Banking Branch in Turkey, it also introduced products and services that are global breakthroughs, including Kredi Makinesi (Loan Machine) and Cep Kredi (Mobile Loan), which allows customers to obtain a loan without having to visit a branch.
The recently-launched Akbank One-Stop Shop Corporate Investment Banking enabled the Bank to begin generating much more effective solutions for investment financing in Turkey. This platform allows Akbank corporate banking clients to receive corporate and investment banking services while easily accessing the experience and expertise of Akbank’s subsidiaries, all in one step.
The Akbank Banking Center, which is the highest transaction capacity operations center in Turkey, commenced service in 2010. Equipped with state-of-the-art technology, this complex is positively contributing to Akbank’s productivity.
Akbank conducts overseas operations through subsidiaries in Germany (Akbank AG) and Dubai (Akbank Dubai Limited) as well as a branch in Malta. The Bank’s other subsidiaries, AkInvestment, AK Asset Management and Aklease, provide non-banking financial services alongside capital markets and investment services.
Equipped with state-of-the-art IT systems and a staff of experienced professionals, Akbank provides top quality services to an extensive portfolio of consumer and corporate banking customers.
Harvard University Kennedy School of Government (Harvard KSG) documented Akbank’s highly successful turnaround story and growth strategy in the aftermath of the 2001 crisis in the form of a case study. “The New Horizons Restructuring Program” was implemented after the 2001 Turkish economic crisis, at a time when the Turkish economy and banking industry were desperately searching for ways to leave the crisis behind. The management, changes and growth strategy made Akbank a lecture topic and a reference case on how to manage and grow through times of economic crisis.
In 2016, Harvard University carried out a research study focusing on Akbank’s digital banking achievements. The study underlined that digital banking will gain in importance in the future, and that the young Turkish population, with their access to smartphones and the Internet, will shift from using branches to mobile banking. The Harvard research study pointed out the cost related benefits of Akbank Direkt and suggested that automation of transactions would minimize human errors, ushering in a whole new era in banking.
With a robust capital base, reliable deposit structure, ability to raise foreign financing on favorable terms coupled with superior asset quality, Akbank has maintained its leading position in the Turkish banking industry. As of the end of 2016, Akbank reported consolidated net profit of TL 4,854 million (approximately USD 1,387 million) and total consolidated assets of approximately TL 295 billion (USD 84 billion). According to the Bank’s Basel III standards, the consolidated capital adequacy ratio of Akbank, standing at 14.2%, is among the highest in the sector.
Operating with the responsibility of creating sustainable value for the Turkish economy, Akbank raised its total loans by 16.6% to TL 179 billion in 2016. Thanks to Akbank’s effective risk management policies, the Bank’s non-performing loans ratio of 2.3% remains well below the industry average of 3.2%.
Akbank continued to win prestigious awards in 2016, a year where the global business cycle weighed heavily on the banks. Akbank was voted “Bank of the Year in Turkey” by The Banker, winning the sector’s most important international award. Akbank also registered major accomplishments for the Turkish banking industry by being deemed the “Best Bank in Turkey” by Global Finance and the “Best Bank in Central and Eastern Europe” by Euromoney. Akbank continues to work with a high level of motivation in an attempt to raise the bar even higher in banking and to create more value.
In addition to these accomplishments, Akbank was reaffirmed as the most valuable banking brand in Turkey for the fifth consecutive year in the international brand valuation company Brand Finance’s survey.
Founded in 1996 in accordance with the Capital Markets Law and other applicable legislation to engage in capital markets operations, Ak Yatırım Menkul Değerler A.Ş. (AkInvestment) is a wholly-owned subsidiary of Akbank. On October 15, 2015, AkInvestment was licensed by CMB as a “Brokerage Firm with Broad Authority.”
Ak Investment serves retail and corporate clients with its well-experienced sales team, content-rich research reports and customer-oriented service approach. Ak Investment delivers its domestic and overseas capital markets products via central sales teams and branch locations across 11 Turkish provinces, with an innovative and broad-based perspective. Ak Investment offers trading services in Turkish capital markets instruments to domestic retail and corporate clients via the Domestic Sales Department, and to domestic and foreign corporate clients via the Corporate Sales and Trading Department.
AkInvestment increased its stock trading market share by 2.3% and ranked fifth with 5.20% market share in 2016, while the Company’s market share on the Derivatives Market (VIOP) soared 94.2% to reach a 6.88% share of the market for fourth place in the sector. In line with its strategies and goals, AkInvestment increased the number of accounts by 14% in 2016 through its branches as well as head office sales staff.
The Research Department regularly issues reports and bulletins in English and Turkish, and delivers these to domestic and foreign investors, playing a key role in customer decision-making.
AkInvestment is the leading market-maker in VIOP in terms of the number of contracts it is a market-maker. The Company is the market leader in equity index options contracts as well as the trading volume leader among market-maker companies in other contracts.
A wholly-owned subsidiary of Akbank, Ak Asset Management was established in 2000 in order to provide capital markets asset management services to institutional and individual investors. The Company’s activities include the management of pension funds, private assets and investment funds. Ak Portföy is the sector leader in retirement funds and in terms of total assets managed other than liquid investment funds.
The well-established pioneer of the Turkish leasing sector, Aklease is a 99.99%-owned subsidiary of Akbank, and has conducted business operations since 1988.
Over the last decade, Aklease outgrew the sector by 55% in an uninterrupted expansion drive. Today it supports manufacturing and service companies of varying sizes with 12 branch locations, robust capital base, specialized human resources, vast funding network and transparent management philosophy. Aklease both finances new equipment and machinery investments, and refinances ongoing investments, through high quality, fast, innovative leasing solutions.
The Company has commenced work to revamp its technological platform and software to be compatible with current technology—fast, easy, mobile and open to customer access—facilitating the execution of financial leasing transactions.
Akbank shares are listed on Borsa Istanbul with a free float ratio of 51.1%. The Bank’s Level 1 ADRs are traded on the OTC market in the United States. As of December 31, 2016 Akbank’s market capitalization stood at USD 9.2 billion.