Dear Stakeholders,
Before presenting the assessment for 2022, we would like to wish Allah’s mercy on our citizens who passed away, patience to their families and a speedy recovery to hundreds of thousands of injured citizens in the February 6, 2023, earthquake disaster centered in Kahramanmaraş, which devastated 11 provinces and shook us to the core. We will continue to support our citizens in the region as Development and Investment Bank of Türkiye. With our nation’s spirit of solidarity, we are confident that we will surmount these challenging times together.
In 2022, when global inflationary pressures and geopolitical risks intensified, and adverse risks to global growth became more apparent, the Turkish banking sector continued to provide financial support for our nation by effectively managing all risks, owing to its robust financial structure.
As Development and Investment Bank of Türkiye, we continued our support to the real sector in 2022 and continued to take responsibility for the sustainable development of our country. As of the end of 2022, our Bank increased its assets by 89 percent compared to the previous year to TL 92 billion and increased its loans by 61 percent to TL 60 billion. In the same period, our Bank’s return on equity increased to TL 6.84 billion, and the Bank’s return on equity was realized above 31 percent.
In accordance with its vision of sustainability, our Bank has continued to fund initiatives that make efficient use of our nation’s resources. By providing credit support to small and medium-sized enterprises (SMEs) and exporters, as well as by supporting sustainable investment projects with our loan options consisting of long-term financing resources for strategic sectors, especially project financing and corporate loans, we expand our sphere of influence through our core business, development banking. With our investment banking expertise, we continue to advise the public and private sectors according to their respective requirements. In this context, we continue to connect investors with low-cost funds from foreign and domestic sources.
In 2022, our Bank continued to bring resources from abroad to our country to support projects with a focus on sustainability. We realized the first sustainable Eurobond issuance of 100 million EUR financed by the French Development Agency (AFD). We also secured a 300 million USD loan from the Asian Infrastructure Investment Bank (AIIB) to finance renewable energy and energy efficiency projects.
We continued to support renewable energy and energy efficiency projects for Türkiye’s fully independent energy supply. By the end of 2022, we financed 6 percent of Türkiye’s renewable energy capacity. In addition, approximately 80 percent of our portfolio consisted of sustainability-themed loans as of the end of 2022. In the same period, the total amount of our loans linked to the United Nations Sustainable Development Goals exceeded USD 2.5 billion. With all these results, we directly and indirectly contribute to 15 of the 17 Sustainable Development Goals.
Environmental, Social, and Governance-themed (ESG) resources that we provided for financing sustainable development continued to contribute to the development of the real sector. At the end of 2022, fifty percent of our portfolio consists of our renewable energy and energy efficiency initiatives financing. In the same sector, we supported projects with an installed capacity of 3,357 MWe through the end of 2022.
As the first signatory of the Impact Management Working Principles (OPIM) in Türkiye, our Bank published the first Impact Report in Türkiye last year in line with the Impact Principles. With this report, we once again stated that our approach to creating positive environmental and social impact in our impact management systems and processes are transparent. Our Bank continues its efforts to improve the impact investment ecosystem without slowing down.
Again, at the International Finance Awards organized by the international finance magazine International Finance, our Bank was awarded in the “Best Green Project Financing Bank 2022” category for its intermediation in Türkiye’s first low-carbon economy transition bond issuance.
We continue our efforts to create regional and global companies operating in strategic sectors prioritized for development and to support high-tech start-ups. We played an important role in the development of the startup ecosystem by investing in new-generation startups with the Türkiye Development Fund, which we established to support sectors that have strategic importance in the sustainable growth of our country. With 6 sub-funds under its umbrella, the Türkiye Development Fund (TDF) continued to make capital investments in our country’s innovative startups and companies with high growth potential this year. With the establishment of METU Teknokent Venture Capital Investment Fund in partnership with the Türkiye Development Fund and METU Teknokent in 2022, TKF managed a total fund size exceeding 1.6 billion TL.
Development and Investment Bank of Türkiye, which has so far brought more than 5 billion dollars of resources from abroad to our country for the future of our country, will continue to work by foreseeing tomorrow from today, as it has been doing for 48 years.
In the coming periods, we will continue our efforts to finance sustainable development without slowing down, and we will maintain our role as the leading guiding bank in this field. We will support the green transformation of our country as we have done so far. I would like to thank the Republic of Türkiye Ministry of Treasury and Finance, our largest shareholders, our Board of Directors, all our stakeholders who acted with us in this process, and all our sustainable development-oriented employees for being with us on this journey.
İbrahim H. ÖZTOP
CEO and Board Member