Participation in the Strength of the Economy
Treasury Management and International Banking
Treasury Management continues its activities by prioritizing the Bank's liquidity needs, enhancing profitability, and closely monitoring and complying with regulatory requirements. In line with the diversification of treasury products, it conducts transactions with domestic and international banks and carries out borrowing, lending, and swap transactions. It actively utilizes both organized and over-the-counter markets. The unit performs pricing activities for the determination of financing and participation account rates. In order to achieve its cash and liquidity management objectives, it participates in auctions held by the Central Bank of the Republic of Türkiye (CBRT) and the Ministry of Treasury and Finance. It closely monitors regulations to fulfill its obligations, including reserve requirements, and takes the necessary actions in case of any changes. Treasury Management also closely follows market developments and the economic agenda and contributes to economic research by participating in the Survey of Market Participant.
Within the Bank, various economic analyses are conducted, evaluations are prepared, and reports are presented to executive management, while data is provided in line with the requests of rating agencies. Financial markets are closely monitored, foreign exchange rates are provided to customers, and the Bank continuously enhances its products and services through innovative applications such as the "Instant Market" product.
Ziraat Katilim's treasury management activities aim to ensure the balanced management of key items supporting the Bank's balance sheet size. In this context, indicators such as total assets, funds extended, financial leasing transactions, shareholders' equity structure, and asset quality are regularly monitored.
Within this framework, the share of participation banking in the financial sector, which plays a key role in enhancing the resilience of Türkiye's financial system against risks, reached 9.2% as of year-end 2025. Having completed its 10th year of establishment, Ziraat Katilim Bank's share within the participation banking sector reached 18% by the end of 2025.
As of 2025, Ziraat Katilim's total assets increased by 49% compared to the previous year, reaching TL 768.8 billion. In the same period, within the participation banking sector, where total assets amounted to TL 4.3 trillion and the growth rate was realized at 63%, Ziraat Katilim ranked among the leading banks in terms of asset size. The growth achieved in 2025 was supported by the enhancement of customer focused product and service diversity and the effective management of financing activities in line with the Bank's sustainable growth strategy.
On the funds extended side, Ziraat Katilim reached TL 491 billion as of year-end 2025. While the total funds extended in the participation banking sector amounted to TL 2.3 trillion, the Bank's market share stood at 21%. During the same period, the Bank recorded a growth rate of 53% in extended funds, while the sector average was 59%.
In terms of shareholders' equity structure, as of the end of 2025, the total shareholders' equity size of the participation banking sector reached TL 301.9 billion, with a net profit of TL 85.6 billion. In the same period, Ziraat Katilim's shareholders' equity amounted to TL 29.2 billion and its net profit stood at TL 5.8 billion.
As Türkiye's first public participation bank, Ziraat Katilim aims to strengthen its position within the participation banking sector and sustain its stable growth through the effective management of balance sheet items and financial indicators monitored under treasury management.
Treasury and Investment Products
• Finance Portal
The Finance Portal offered by Ziraat Katilim is an information platform where profit share rates, foreign exchange rates, and evaluations regarding market developments are shared. The data and bulletin content available on the portal are prepared based on indicators disclosed by the Bank to the public and are presented to enable customers to regularly monitor financial data.
• Investment Funds
At Ziraat Katilim, investment funds are offered through participation funds structured in line with participation banking principles. These funds, which are based on money and capital market instruments that do not generate interest income, are made available to retail and commercial customers who prefer to invest in accordance with participation principles.
The portfolios of participation funds consist of lease certificates, participation accounts, shareholders' equity instruments, gold and other precious metals, as well as other interest-free based money and capital market instruments approved by the Capital Markets Board. Fund structures are diversified to meet varying risk, maturity, and return expectations.
• Spot Foreign Exchange
Spot foreign exchange transactions refer to currency buying and selling transactions offered by Ziraat Katilim to retail and commercial customers over FX/TL or cross currency (FX/FX) rates. While spot FX transactions enable retail customers to meet their foreign currency needs, they also support commercial customers in managing foreign currency flows arising from import, exports, and other trade activities, as well as balancing short-term exchange rate risks.
• Instant Market
Instant Market, through which customers can perform foreign exchange transactions, is the first FX buying and selling module among public participation banks and was introduced in 2023.
The Instant Market Module enables customers to carry out foreign exchange, cross currency (arbitrage), and precious metals (gold and silver) transactions instantly. Through the module, customers can execute real-time buy and sell transactions at advantageous rates and place orders in the desired direction based on specified price or exchange rate levels. In addition, with the alarm function, customers can request to be notified via SMS and email when predefined price levels are reached.
As of 2025, a Web Application Firewall (WAF) enhancement was implemented to strengthen the security infrastructure of the Instant Market Module. In addition, with the integration of the Red Distribution Engine (RDE), a cross-check mechanism was established, improving the accuracy and reliability of rate determination processes. These improvements contributed to minimizing human error in operational processes, increasing transaction speed, and enhancing operational efficiency.
At the same time, a data analytics infrastructure was developed for different customer segments, enabling customer specific pricing and quotation mechanisms. This personalized service approach has improved the overall customer experience. As of year-end 2025, the number of customers actively using the Instant Market Module reached 105,000, making a significant contribution to the expansion of investment and transaction services offered through digital channels. As a result of these efforts, the Instant Market Module was awarded the Stevie Awards in 2025.
• Forward Foreign Exchange Transactions (Forward)
Forward transactions are among the foreign exchange products offered by Ziraat Katilim to its commercial customers. These transactions enable the exchange rate for a future foreign currency purchase or sale to be determined in advance and are used for planning foreign currency obligations arising from commercial activities. In 2025, the service channels and product range of investment products were expanded, and retail forward transactions were made available to private banking customers.
Within the scope of investment banking activities, the Bank aims to diversify its Turkish lira and foreign currency funding in 2025 and to introduce new instruments into its portfolio in order to secure short-, medium, and long-term borrowings in TL and FCY efficiently and at competitive costs. In this context, various funding structures such as bilateral loans, club loans, syndications, Tier 1 and Tier 2 instruments, and country loans are targeted. It is also planned to establish close interaction with branches and customers through field visits.
As part of its investment banking activities, an MTN Programme was established in 2024. Under this programme, private placements from international markets, subordinated loans, bilateral borrowings, club loans, and Tier 1 transactions were executed. In line with developments in international markets, the USD 1.5 billion MTN Programme launched in 2024 was renewed in 2025, and within this programme, private sukuk issuances amounting to a total of USD 1.1 billion were carried out during 2025.
In 2025, efforts continued to diversify the Bank's short-, medium-, and long-term borrowing structure in both Turkish lira and foreign currency within the scope of investment banking activities. Accordingly, the diversification of the funding portfolio was targeted by utilizing various instruments such as bilateral borrowings, club loans, syndications, Tier 1 and Tier 2 transactions, and country loans. To enhance the effectiveness of funding activities, field visits were conducted to branches and customers, ensuring close engagement with stakeholders.
Through its subsidiary Ziraat Katilim Varlik Kiralama A.S., the Bank continues its funding activities via lease certificate issuances denominated in TL. In this context, an issuance ceiling of TL 80 billion has been approved for lease certificate issuances in the domestic market. Another subsidiary, ZKB Varlik Kiralama A.S., has continued its activities in the lease certificate market by issuing Turkish lira denominated lease certificates on behalf of third parties, further increasing its effectiveness in this field. On the credit rating side, in addition to Fitch Ratings, the Bank has started to receive a credit rating from Moody's Ratings for the first time.
Detailed information on the ratings of credit rating agencies can be found in the Financial Information and Risk Management section of the report.
International Banking
International banking activities are carried out within a framework that supports Ziraat Katilim's short-, medium-, and long-term funding needs. Through collaborations established with domestic and international financial institutions, the Bank diversifies its funding structure, while ensuring the efficient and secure execution of foreign trade transactions and international money transfers via its correspondent banking network.
Investment Banking
Operating under the International Banking Department, the Investment Banking Division diversifies the Bank's medium and long term funding structure through collaborations established with domestic and international financial institutions. In this context, domestic and international sukuk issuances, bilateral funding transactions with international banks and multilateral development finance institutions, as well as the provision of club loans and syndicated loans are carried out, supported by an active marketing approach aimed at developing new partnerships in this field. Through the Bank's asset leasing company subsidiaries, domestic lease certificate issuances are conducted, thereby enabling corporate customers to access funding from capital markets and participation based funds of portfolio management companies under favorable conditions.
Financial Institutions – Extensive Correspondent Banking Network
Ziraat Katilim utilizes its extensive correspondent banking network while carrying out intermediary activities related to foreign trade and treasury transactions. Through long term collaborations, the number of correspondent (Nostro) accounts opened in foreign currencies is increased, and the Bank's capacity to transact in different currencies is strengthened.
Operating under the International Banking Department, the Financial Institutions Division ensures the efficient and seamless execution of foreign trade transactions and international money transfers via the correspondent banking network established through collaborations with domestic and international financial institutions. Based on country and bank risk assessments, the Division manages the allocation of mutual treasury and foreign trade limits with correspondent banks and follows up on contractual processes. It also represents the Bank in meetings and events held with domestic and international correspondent banks.
In 2025, efforts to further develop correspondent banking relationships continued. Correspondent relationships were established with 45 new banks across 27 countries, and new limits were allocated to 18 banks in 11 countries. In addition, new US dollar correspondent accounts were opened with certain international banks. As a result of these developments, Ziraat Katilim's correspondent network reached 564 banks, foreign trade transactions were conducted with 93 countries, and limit allocations were completed for 353 banks across 82 countries.
Overseas Branch Expansion
Overseas branch expansion activities are carried out by the Overseas Branches Division within the scope of planning and managing Ziraat Katilim's overseas operations. In this context, feasibility reports are prepared for countries where new branches may be established, project management of existing overseas branches is conducted, and coordination is ensured with relevant units under the Head Office to support both marketing and operational processes of current overseas branches.
Efforts are undertaken to maintain existing customer relationships in overseas branches and to acquire new customers. Customer and branch visits are carried out within the scope of foreign trade transactions between Türkiye and the countries where overseas branches are located.
The performance of overseas branches is monitored and regularly evaluated based on defined indicators. In addition, training and orientation programs are conducted to support the alignment of international branch employees with the Bank's corporate culture.
In international expansion activities, the African continent is identified as a priority region in line with the incentives of the Republic of Türkiye and the Bank's strategic approach toward Africa. In this regard, Ziraat Katilim has been operating in Sudan since 2020 and in Somalia since 2023. Through its branches in Africa, the Bank aims to support regional trade financing and facilitate cross border transactions.
The Somalia Mogadishu Branch, which commenced operations in 2023, plays a role in enhancing the access of Somalia's financial system to the international financial system and its integration into global markets. The branch, which demonstrated steady growth in 2024, plays an active role particularly in executing transfer transactions related to foreign trade for Turkish and Somali business communities. The Khartoum Branch in Sudan suspended its operations due to internal conflicts in April 2023 and resumed its activities in Port Sudan as of 20 July 2025 in order to ensure operational continuity.
Ziraat Katilim continues its efforts to establish new branches in different countries across the African continent. On-site visits are conducted for the Bank's customers engaged in trade with African countries, and feasibility studies are prepared for the respective markets. These efforts are planned to continue in 2026.