BEST BANKS IN TURKEY, 2005

Global Finance, Jul/Aug 2005 by Green, Paula L

Turkish banks are benefiting from a stronger Turkish economy and banking regulators' recent efforts to streamline and clean up the nation's banking industry. New opportunities are emerging in banking segments from retail services to credit card lending to asset management. The sounder financial footing of the economy and the banks themselves-asset guality is up as the banks post greater profits-is generating intense interest among foreign banks. Several European banks have already tapped into opportunities in the local banking market by purchasing stakes in Turkish banks.

Global Finance selected five sectors that represent some of the more traditional banking services-such as commercial services for corporations-of Turkey's universal-type banks, as well as new growth areas such as the growing credit card lending business.

In order to compile the complete list, the top financial institution in each category was chosen using research and input from financial analysts, consultants, bank executives and business leaders both in the United States and in Turkey. The criteria used to determine the winners included an objective and subjective mix of assets, profitability, strategic and expanding relationships, customer service, innovation and management savvy.

BEST COMMERCIAL BANK IN CORPORATE SERVICES

Akbank

One of the largest private commercial banks in Turkey, with about 11% of the nation's banking assets, Akbank provides a variety of corporate services, from traditional lending to foreign exchange trading. This Istanbul-based bank focuses on using technology and strong risk management techniques and is beefing up the training of its staff to improve relations both with its corporate and with its retail clients. Majority-owned by the giant Sabanci Group, this financial institution has a strong capital base and a well-known brand name throughout Turkey. Assets totaled $26.4 billion at the end of 2004.

BEST COMMERCIAL BANK IN RETAIL SERVICES

GarantiBank

GarantiBank is majority owned by Turkey's Dogus Group and is one of this nation's largest privately owned commercial banks. The bank is known for a progressive management style and innovation that has made it a pioneer in everything from online banking to implementing scoring systems in its consumer loans and credit cards. Today, the bank is a leader in retail banking, a growing segment for the banking industry in Turkey.

BEST BANK IN CREDIT CARD LENDING

Yapi ve Kredi Bankasi

Credit card lending is one of the fastest-growing segments in the Turkish banking sector, and Yapi ve Kredi Bankasi is a leader in this market. The bank is successfully using its strong brand name, a network of more than 400 locations throughout Turkey and top-notch customer service to build a loyal base of credit card clients. The bank's fortunes can only improve with the decision by UniCredit and Koc Holding to team up and buy the controlling 57% stake owned by the troubled Cukurova Holding company.

BEST FOREIGN BANK

Citibank

This financial giant has been a player in the Middle East region for half a century and has the longest history-more than two decades-of any foreign bank in Turkey. The bank is committed to expanding its presence in the country, and more than 1,000 employees work to offer corporate and retail clients a full array of financial services. These services include credit cards, Internet banking and retail banking for Citibank retail customers and corporate and investment banking services for the bank's domestic and cross-border corporate clients.

BEST INVESTMENT/ SECURITIES BANK

Oyak Securities

Majority-owned by the Armed Forces Pension Fund, Oyak Securities provides a wide range of investment banking and brokerage services to domestic and international clients. Backed by a strong equity and macroeconomic research department and a network of more than 50 offices throughout Turkey, this securities firm operates in the secondary market on the Istanbul Stock Exchange. The firm trades a variety of financial instruments-from equities to government bonds to mutual funds. And the corporate finance team provides advisory services for privatization projects, merger and acquisition activities and public offerings. -PG