Ziraat Bankası 2011 Faaliyet Raporu

Introduction

Management and Corporate Governance Practices

Information on the Activities of the Committees

Attendance by the Members of the Board of Directors and of the Audit Committee in the Meetings Held During the Reporting Period

Related Party Transactions

Activities for Which Support Services are Outsourced in Accordance with the "Regulation Concerning the Outsourcing of Support Services by Banks and the Authorization of Organizations Providing Such Services" and the Persons and Organizations from Which they are Obtained

Financial Information and Risk Management

Statutory Auditors Report

Audit Committee's Assessment of the Operation of the Internal Audit, Internal Control, and Risk Management Systems

Independent Auditor's Report; Unconsolidated Financial Statements and Notes for the Period January 1- December 31, 2011

Ziraat Bank's Financial Standing, Profitability and Solvency

Ratios

Risk Management Policies Adhered to According to Types of Risk

31 December 2007 – 31 December 2011 Summary Balance Sheet and Income Statement

Credit Ratings

Independent Auditor's Report; Consolidated Financial Statements and Notes for the Period January 1 - December 31, 2011

1. BİLEŞİM ALTERNATİF DAĞITIM KANALLARI VE ÖDEME SİSTEMLERİ A.Ş.

Bileşim was originally founded in 1995. In 1998, by taking the title “Ziraat Kart İşlemleri A.Ş.”, the company changed its field of activity. In 2002, it was reorganized with a new partnership structure under the current title of “Bileşim A.Ş.”. Bileşim is an information technology company that supplies operational and support services for alternative delivery channel and payment system services of Ziraat Bank.

The alternative delivery channel and payment system services and operations that Bileşim provides are concerned with Ziraat Bank’s credit cards, debit cards, ATMs, VTMs, merchant partners (POS), bridge and highway toll systems and call center. As of end-2011, it was delivering operational service to 3.5 million credit cards and 16.5 million debit cards on Ziraat Bank’s behalf and managing the operations of 972,739 OGS (automated toll system), 98,236 POS, 3,820 ATM and 52 VTM terminals.

Providing service to our Bank’s customers and branches, the Customer Communication Center on 444 00 00 and 444 0 434 handled 14.9 million calls in 2011. As of 2011, the Customer Communication Center continued to offer service 24/7 to Ziraat Yatırım A.Ş. (Ziraat Investment), Ziraat Sigorta A.Ş. (Ziraat Non-life Insurance) and Ziraat Hayat Emeklilik A.Ş. (Ziraat Life and Pension).

Maintaining the same service quality and customer-focused approach in fulfilling significant volumes in its areas of service in 2011, Bileşim successfully completed various projects in the reporting period. Major projects completed in 2011 by Bileşim A.Ş. include cooperation with the Turkish Armed Forces, accepting card applications and limit increase requests through ADCs, provision of assistance and lounge services to Ziraat Maximum platinum card holders, Genç Kart (Junior Card) and Gençlik Paketi (Youth Package), cash advance with installments and subsequent installment option, transition to customer authentication through use of static password in the 3D secure application for e-trade transactions, use of Bankkart (Ziraat debit cards) in e-trade transactions, and installation of modern and functional new ATMs.

2- FİNTEK FİNANSAL TEKNOLOJİ HİZMETLERİ A.Ş.

Since its establishment in 2001, Fintek Finansal Teknoloji Hizmetleri A.Ş. has been providing Ziraat Bank and its subsidiaries with information technology services in the areas of infrastructure, integration, system management, support/operation, application development and technical consultancy.

Always targeting to achieve the better by utilizing its competent and dynamic human resources in conjunction with technology and its expertise, Fintek kept providing strong technology support to Ziraat Bank in 2011 with its innovative and up-to-date technology investments and productions. The architect of Finart, the basic banking software, Fintek carried out numerous application developments to ensure operational efficiency and customer-focus in 2011, in keeping with constant improvement understanding. These projects included creation of “Customer Profitability” data aimed at providing the decision-makers at any level across the Bank with meaningful information, and the infrastructural work on the “Corporate Content Management” application that will integrate forms and documents into processes and manage them on an automation system. Fintek developed the “Centralized Turn in Line System” aimed at better managing the customer density in branches, and started introducing touch-screen kiosks in branches. In addition, the Bank’s ATM pool has been strengthened with 1,505 cash recycling ATMs that are able to perform palm authentication in card or cardless transactions.

In 2012, Fintek will continue to provide superior and rapid technological infrastructure and hardware support in line with the target of achieving increased operational efficiency and capturing competitive advantage in the sector by supporting the business strategies of Ziraat Bank.