Being our country’s official export credit agency, Türk Eximbank services our exporters in line with our country’s export strategies through 23 branches 6 liaison offices. As at year-end 2023, the Bank’s total export credits amounted to USD 42 billion. The Bank extended loans worth USD 19.6 billion, of which USD 3.4 billion is medium- and long-term credits. On another front, Türk Eximbank insured receivables worth USD 22.4 billion, thereby offering our exporters a safe sales environment in the same timeframe.

At year-end 2023, Türk Eximbank's paid-in capital increased from TL 13.8 billion to TL 20.6 billion on the back of the cash capital increase of TL 6.8 billion carried out by the Republic of Türkiye Ministry of Treasury and Finance.

The number of credit-customer exporters the Bank has lent money to reached 13,167, and that of insured exporters to 6,885. In this framework, total number of unique exporter companies increased by 10% to 16,929, with 84.2% of them falling in the SME category.

An overview of 2023 activities…

Despite the challenging conditions the world trade had to deal with, Türkiye reached USD 255.8 billion in exports in 2023 drawing on the momentum captured in the past two years, and broke the record of the Republic era. Being Türkiye’s official export credit agency, Türk Eximbank sustained its contribution to ensuring a safe exportation process for our exporters by extending a total support of USD 42 billion, comprised of USD 19.6 billion in credits and USD 22.4 billion in insurance and guarantee.

Rediscount credits disbursed under the Pre-Shipment and Post-Shipment Rediscount Credit programs amounted to USD 12.5 billion, which accounted for 63% of the Bank’s total loan volume.

The loans disbursed under International Loans Programs in 2023 amounted to USD 46.8 million, and 12 letters of intent were issued in favor of Turkish companies for projects/export deals to be carried out in 7 countries with goods and services export potential worth USD 2.1 billion.

During the reporting period, shipments worth USD 22.4 billion were covered under Receivable Insurance Programs, with Short-Term Export Credit Insurance representing 88% of it. While premiums collected totaled USD 71 million under the said programs, claims paid amounted to USD 25 million.

New Products and Services Developed in line with Exporters’ Needs…

While strategic projects introduced in 2023 and activities with expanded scope rendered the Bank’s support mechanisms more accessible, the process improvements enhanced service quality.

• To facilitate access to financing by companies exporting value-added and high-technology products that are prioritized in line with target-oriented export credit strategy, credit collateralization structure has been diversified in line with the practices in the banking sector. Accordingly, alternative collateral types accepted by other commercial banks started to be accepted also by Türk Eximbank, including securities pledge, guarantees by guarantee funds, mortgage, guarantees by real or legal persons, as well as bank letters of guarantee and our Bank’s Export Receivable Insurance Policies. This implementation reduced exporters’ cost to accessing financing and increased the accessibility of support mechanisms.
• In keeping with the strategy to diversify products and services, solutions continue to be produced for our interest-averse exporters. In 2023, Agreement for İstisna was introduced, which is a method for interest-free fund allocation. Furthermore, “Participation Based Export Receivables Insurance” program was put into implementation within the scope of receivables insurance that represents another major activity of the Bank, as well as financing programs introduced in line with participation finance principles. A first in export credit insurance, Participation Based Export Receivables Insurance will contribute to increasing our country’s exports amid a safe environment by providing insurance cover for export receivables with a maximum term of 360 days, which arise from sales of goods in accordance with Islamic Banking Principles and Standards, against commercial and political risks.
• Rediscount Credit Based in Swap Agreements that were co-introduced with the CBRT were further expanded in 2023. Efforts are ongoing to broaden the credit to cover other countries, which was initially implemented for imports from the People’s Republic of China.

Support to Investments for Alignment with Carbon Border Adjustment Mechanism…

Having placed sustainability at the heart of its strategy with the aim of getting the exporters ready for the carbon border adjustment mechanism that will be started to be implemented in 2026, the Bank continues to work on support models intended to minimize exporters’ carbon tax costs. Credit support will continue to be extended particularly on the back of sustainability themed facilities for investments for achieving alignment with the Carbon Border Adjustment Mechanism, primarily to global buyers’ suppliers in Türkiye. With this approach, sustainability-linked/themed funds and syndicated loans worth approximately USD 3.7 billion have been arranged from overseas financial institutions to be allocated to our exporters from 2020 to date.

Obtaining Funds for Low-Cost Financing Available in Various Terms to our Exporters…

In 2023, Türk Eximbank secured funds in the amount of USD 4.3 billion from international markets and an additional USD 1.3 billion within the scope of funding from treasury transactions (repurchase agreements, TRS, borrowings) and kept offering low-cost financing facilities with various maturities from its fund stock maintained at USD 18.8 billion level, including CBRT funds of USD 9.5 billion.

Prioritizing the financing of High-Technology, Value-Added Exports…

Türk Eximbank extends its support in line with the country’s export strategies; accordingly, financing of high-technology, value-added exports is prioritized when allocating the Bank’s support facilities. High- and Medium-High-Technology Exports accounted for 40.7% of Türk Eximbank’s credit volume at year-end 2023, which is targeted to be increased to 42.2% in 2024.

Benefits of Digital Transformation Start to be Manifested…

Within the scope of Türk Eximbank’s digital transformation, internet and mobile branches’ front-ends were revamped, resulting in improved user experience. Screens and menus were simplified for ease-of-use by exporters. Important steps are planned to be taken in 2024 for digitalization of Türk Eximbank, and the outcomes of the projects launched to enhance user experience as well as increasing transaction diversity on digital channels will start to be observed.

Strategic Partnerships, Renewed Collaborations…

Partnerships continued to be established, which will pave the way for making diverse financing facilities available in cooperation with other export credit agencies and regional multilateral financial institutions with the aim of helping increase the competitive strength of our exporters and contractors in international markets.

To this end, Türk Eximbank undersigned a strategic partnership in 2023, and executed a shareholding agreement with the Africa Finance Corporation (AFC), one of Africa’s key multilateral financial institutions. This move made Türk Eximbank the first non-African shareholder in AFC, the continent’s leading provider of infrastructure solutions.

Türk Eximbank has more than sixty agreements of various content that it signed with the export credit and insurance agencies of forty countries, as well as multilateral financial institutions. The Bank sustained its close cooperation with these institutions, as well as its efforts for signing new agreements in 2023.

Explanations about Türk Eximbank’s Balance Sheet and Profit & Loss Statement

Türk Eximbank’s balance sheet size reached TL 608 billion (USD 20.7 billion) as at 31 December 2023.

Türk Eximbank’s assets are composed of credits by 85%, liquid assets by 5%, and financial assets measured at amortized cost by 3% and, derivative financial assets and other assets by 7%.

The Bank’s loan portfolio reached TL 517.1 billion, up by 69% in the twelve months to end-December 2023. Of the total credits, 61.1% (TL 316.1 billion) are short-term credits and 38.8% (TL 200.4 billion) are medium- and long-term credits. Although a substantial portion of the Bank’s funds are channeled to the exports industry in the form of credits, the ratio of non-performing loans (NPL) (TL 0.6 billion) to total loans is well below the sector’s average and stands at 0.1%.

Türk Eximbank’s total liabilities were worth TL 608 billion. Of these, 7% (TL 42 billion) consisted of shareholders’ equity, 92% (TL 558 billion) of external funds, and 1% (TL 8 billion) of provisions and other liabilities.

Out of the Bank’s shareholders’ equity of TL 42 billion, 48.5% (TL 21 billion) pertains to paid-in capital, 25% (TL 10.5 billion) to profit reserves and others item, and 26.5% (TL 11 billion) to net profit for the period.

TL 555.5 billion of foreign resources used for funding the Bank’s assets consisted of TL 279.4 billion in credits sourced by the CBRT, TL 166.4 billion in credits provided from domestic and foreign banks and borrowings from money markets, TL 100.7 billion in marketable securities issued, and TL 9 billion in subordinated loans.

At the Ordinary General Assembly convened on 21 July 2023, the authorized capital was increased to TL 50 billion. The Bank’s paid-in capital is TL 20.6 billion as of 31 December 2023.

The credit-weighted composition of Türk Eximbank’s balance sheet bears effects also on income. The Bank's total interest income is TL 48 billion, of which 91% (TL 43.6 billion) is interest received from loans.

On the other hand, the Bank’s interest expense was TL 36.6 billion since the Bank secures funds by way of borrowing from domestic and international money and capital markets and through bond issuances. Of this amount, 82% (TL 29.8 billion) was interest paid on borrowings from domestic and international markets, and 16% (TL 6 billion) was interest paid on marketable securities.

The Bank booked a net profit of TL 11 billion for the period ended as of 31 December 2023. Therefore, the Bank registered return on assets and return on equity ratios of 2.40% and 46.24%, respectively.

The Bank carries out its operations in accordance with the legislation governing it and the provisions of its Articles of Association, and we hereby present our summary report pertaining for the period ended 31 December 2023 for your review.

	Osman ÇELİK Chairman
Özgür Volkan AĞAR Deputy Chairman	Ali GÜNEY Member	Nail OLPAK Member
Fahriye Alev ARKAN Member	Mustafa GÜLTEPE Member	D. Bahar ÖZGÜN YILMAZ Member