IN 2016, THE NUMBER OF CUSTOMERS OF İŞ LEASING INCREASED BY 17%, WHEREAS THE NUMBER OF TRANSACTIONS WENT UP BY 14%.

17%

Dear Stakeholders,

The developments in global and national economy in 2016 played a repressive role on the operations of the leasing sector.

Although the first two quarters of 2016 exhibited a positive growth performance, internal and external events in the second half of the year decelerated economic activity at a significant extent, and caused the manufacturing industry to postpone or somewhat curb their investments during the course of the year. This negative climate led to 4% contraction in the annual new transaction volume of the leasing sector, keeping it at USD 6.1 billion in 2016.

DURING 2016, SHAREHOLDERS’ EQUITY OF İŞ LEASING GREW BY 12.4% TO USD 830 MILLION.

TL 830

MILLION

Nevertheless, a noteworthy event was the reduction of certain taxes levied on transactions and of intermediation costs such as charges that resulted from the regulatory changes concerning our sector. Another important development of the reporting period has been the inclusion of movables in addition to immovables in the sale-and-leaseback scope without a tax burden.

İş Leasing continues on sustainable and profitable growth track.

İş Leasing preserved its consistent performance and healthy growth in 2016 on the back of its professional management and employee teams, strong command of the market and the sector, focused channel strategy, and synergetic cooperation developed with İşbank.

In 2016, İş Leasing outdid the sector in a number of indicators: During the reporting period, the Company increased the number of its clients by 17%, and the number of its transactions by 14%. Transaction volume of the Company grew by 23% to TL 1.7 billion, whereas leasing receivables expanded by 21.7% and reached TL 4 billion in the same timeframe. Total consolidated assets of İş Leasing went up by a remarkable 34% to TL 7.5 billion, and its shareholders’ equity reached TL 830 million, up by 12.4%. Having booked TL 104 million in profit with a record rise of 26.4% in 2016, İş Leasing maintained its return on assets (RoA) at 1.6%, and its return on equity (RoE) was 13.2%.

İş Leasing builds a healthy portfolio structure with respect to profitability and composition of risks, and increases the concentration of its customers in the areas of heavy-duty and construction machinery, machinery & equipment, and real property, which act as the engines of the sector. As a result, more than 60% of the Company’s portfolio is constituted by SMEs.

In 2017, İş Leasing will keep supporting especially small-sized companies from diverse sectors and continue to help them realize their investments by way of leasing solutions. The Company’s areas of focus for 2017 include, in particular, clean energy investments and collaborations with vendors.

We have faith in the growth potential of Turkey and of the leasing sector, as well as in the strength of our entrepreneurs. I would like to extend my thanks and respect to our Board of Directors, to all our business partners, employees and investors, who have a share in the achievements of our Company that makes a difference with its knowledge and vision.

Hasan K. Bolat
General Manager and Member of the Board of Directors