3Turkey, Turkish Economy and Banking Sector Number of Banks45Number of Employees192,214Total Net ProfitUSD 13,068 mioNumber of Branches10,556Total AssetsUSD 722,157 mioTotal LoansUSD 444,603 mioBanking Sector in Turkey (June’13)Population: 75,627,384 (2012)GDP : USD bln786,064 (2012)GDP/Capita: USD10,456 (2012)GDP growth 2012*SME Cash Loans in Turkey (mio USD)SME Cash Loan share in commercial loans %37SME Cash Loan share in total loans %27*Source: IMF
4SMEs in Turkey SME Share in Employment 79% SME Share in Production 58% EnterprisesAnnual Turnover or Total Assets (USD)Number of EmployeesNumber of Firms%Micro<1 to 995,20%Small– 4 mio10 to 494,00%Medium Size4 mio – 20 mio50 to 24918.4080,60%TOTAL99,80%The average life of a company is13 years !50% of newly established firms are closed in 5 years !Most of the rest are staying small !Number of small sized firms increases but medium-sized firms cannot succeed to reach the big-sized firms groupTurkish Ministry of Industry & TradeTurkish Statistical Institute 2010
5TEB Segmentation & Turkish SME Market Loans & Customer Numbers (As of July 2013)SME+SMESmall BusinessUSD 10 mioUSD 25 mioUSD 1 mioUSD 120 bnUSD 7.5 bn+ Agri, Gold & Public Finance BankingThese customers are served by dedicated RMsMARKETTEB6,30%MarketShare
6SMEs should double their sizes every 3 years’ period. But HOW6
8“consultant bank” rather than applying classical banking approaches. Changes in SMEs’ demands enhance new offers and solutions“Bank – customer relation” is no longer purely “commercial”DifferentiationKNOWLEGDER&DSMEsTECHNOLOGYTEB SME Banking aims to become the first to be remembered when SMEs are concernedby acting as a“consultant bank” rather thanapplying classical banking approaches.
9TEB SME Academy : A Consultive Solution for SMEs TEB SME Academy aims to increasethe competitive powers of SMEsin local and global marketsby means of interactive workshopsfor “strategy, institutionalisation, marketing and growth scenarios” with the content :Opening SpeechesTEB SME Banking ApproachLectures by PhDsInteractive Workshops70 Events40 Cities20,000 Businessmen&womenSince 2005BENEFITS for SMEsIncrease profitabilityEnhance professional managementIncrease market shareBENEFITS for the BankEnhancing customer loyaltyAttracting our competitors’ customers by differentiationGaining ‘prestige’ by supporting the SMETraining customers, reducing risk9
10daily / 4.5 mn annual visitors TEB SME TVaims to easen the wayto access informationabout businessMembers enjoy practical solutions for their daily business problems.TEBLiveFinanceSME TV ExpertsSMELingoMore than 6,000 videos20,000daily / 4.5 mn annual visitorsMore than 130,000members10
11TEB SME Consultants 350 SME RMs TEB SME Consultants is a management consultancy service for SMEs where SME RMs offer diversified solutions for SMEs as a result of a 2-year training program.SME GuidesSME ExpertsSME ConsultantsSME RMs will have 360° approach when assessing SMEs and be able to analyse & suggest aboutfirm strategy, long term projectsproductionmarketing & salesHRStrategy and Growth ManagementTraining for 5 MonthsCertified by TOBB University4 Main Expertise3 Main Consultancy AreasTraining for 24 Months11
1249 Global & Local Partners SME Club15,600 Members49 Global & Local PartnersA platform bridging SMEs and corporate firmsat the point of purchase with remarkable discounts.Cost management support for SMEs and attractive discounts up to 50% from the most reputable companiesAn SME can save EUR15,000 average/year.Corporate firms get the advantage of selling to SMEs.Loyalty club for TEB SME clients120$ Yearly membership fee is an additional non-interest income source for TEB.
13444 0 667 SME Support Line A free-of-charge line that provides Information ServicesLine for Legislation on Foreign TradeLine for Customs LegislationLine for EU FundsLine forTax and AuditLine for Corporate Social ResponsibilityLine for QualityLine for GoldLine for AgricultureLine for EmployersLine for National & International fairsLine for Trainings for SMEsLine for LeasingLine for FactoringLine for AssuranceA free-of-charge line that provides24/7 information and assistance services to TEB SME ClientsAssistance ServicesTranslation ServicesInternational Travel OrganisationsOffice Management AssistantSupplying Temporary Office Materials (Laptop, projection machine, etc.)13
15TEB SME Academy Emerging Markets Developed Markets BNPP Spirit of Innovation2007EgyptAlgeriaItalyBelgium10 SME Academies took placein BNPP Algeria since 2007with the participation of Ministry of Economy and 300 participants&2 SME Academies took place in Egypt since 2011PILOT STUDIES IN BELGIUM AND ITALY WILL BE LAUNCHED NEXT YEAR1515
16How do non-financial services contribute to business results 16
17TEB SME Banking (as of 2012) NET Banking Income Number of CustomersNET Banking IncomeIncome before tax (after HOEA)USD 113 mioUSD 230 mio*Including Card Payment Income**Income before tax (after HOEA)
18IFC announces a Turkish bank as a “Success Story” for the first time... IFC has adopted TEB as a success story for both bank and clients while studying over the non-financial services provided to SME clients.Developing an SME Banking Strategy & Value Proposition to SMEsDesigning and Roling Out New Non-Financial Services(TEB SME Academy, TEB SME Consultants etc)Measuring Return on Investment & Benefits to TEB and SME ClientsConclusion and Looking Ahead
20Number of Establishment The Market?SizeNumber of Establishment*Capital Need (USD)Total CapitalNeed USD(mio)Micro94%60.0007.000Small6.9505%2.000Medium and Big1.0501%1.20010.200SMEMicroStart-UpThe pioneer bank of Start-Up Business Banking The first bank after the government institutions supporting entrepreneurship and technologyObjective
21First Second Target Group * University graduates * Projects with high-value added potential* Franchise entrepreneurs who want to get high brand value companyPrioritizationTechnoentrepreneursProjects which have received grants from the stateEntrepreneurs having projects on Energy Efficiency and/or environmentWomen EntrepreneursFirst* The enterpreneurs who want to establish (grocery, green grocer or restaurants etc.)* The enterpreneurs who have no business idea or high value-added projectsSecond