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Dear Shareholders,
During the first nine months of 2024, tight monetary policies in the global economy have led to a significant decline in inflation, while central banks remain cautious until their inflation targets are fully achieved. As interest rates gradually begin to decrease, risks to growth and employment are also being taken into consideration.
In contrast, China is ramping up its monetary and fiscal stimulus to meet its growth targets. Despite the improvement in global financial conditions, the ongoing Russia-Ukraine War, the risk of escalating conflicts in the Middle East, and tensions in Taiwan remain among the key geopolitical risks threatening the global economy. Furthermore, we are increasingly seeing the impact of economic sanctions and protectionist trade measures in global markets. The upcoming U.S. presidential elections will also be closely monitored for their potential influence on these issues.
In terms of the Turkish economy, macroeconomic balancing has been achieved thanks to tight monetary policies and macroprudential measures. With rising confidence in the Turkish Lira, both domestic and foreign investors are showing growing interest in Turkish Lira-denominated assets, leading to a decrease in the country’s risk premium and an upgrade in its credit rating. The narrowing of the current account deficit and the inflow of foreign capital have bolstered the Central Bank’s foreign exchange reserves, while inflation has recorded a notable decline since the second half of the year. However, inflation still remains above target levels, and economic management continues to signal those tight monetary policies will be maintained, supported by fiscal and revenue policies. In the short term, economic growth is expected to slow, but a permanent reduction in inflation will strengthen economic stability and growth in the long run.
As QNB Türkiye, we entered the final quarter of 2024 with a significant step. In line with the vision of our main shareholder, QNB Group, to become “an international brand” and its mission of “creating an integrated brand architecture,” we are continuing our operations in Türkiye under the name ‘QNB.’ This brand transformation will ensure that we are united under a single global name and represented with the same strong voice in all countries.
Our bank’s financial performance has also continued to exhibit steady growth during this period. As of 30 September 2024, our Bank’s total assets grew by 38 percent compared to the year-end of 2023, reaching TL 1 trillion 363 billion 39 million. In the same period, net loans increased by 39 percent reaching TL 795 billion 226 million, and customer deposits rose by 27 percent reaching TL 772 billion 744 million. In the first nine months of year 2024, net profit of our Bank realized at TL 27 billion 231 million.
At QNB Türkiye, we continue to strengthen our commitment to sustainability. In collaboration with the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD), we issued a total of USD 125 million in blue and green bonds. This issuance includes Türkiye’s first-ever blue bond, amounting to USD 25 million, which supports projects aimed at protecting water resources and marine ecosystems. Additionally, the USD 100 million green bond is targeted at financing renewable energy and low-carbon projects.
With your continued trust, we remain steadfast in our commitment to ensuring sustainable growth. As always, we will keep you informed of our economic developments and strategies.
Sincerely,
Ömer Aras
Chairperson of the Board
QNB Bank A.Ş.
