OPERATIONAL INFRASTRUCTURE AND BUSINESS UNIT PROJECTS

CREDIT UNDERWRITING

Data-Driven and Fast Credit Processes

The Credit Underwriting Department, a key component of Türk Ticaret Bankası’s sustainable growth strategy, comprises units that ensure customers’ financing needs are met effectively, securely, and in compliance with regulations.

Credit Underwriting Management operates under two separate organizational structures: the Corporate and Commercial Credit Underwriting Department and the Retail Credit Underwriting Department, both of which report directly to the Executive Vice President of Credit Underwriting. This structure enables expert teams to effectively manage the complex financing demands of the corporate and commercial segments, as well as the credit needs of retail customers. Additionally, in line with its strategy to support exporters’ access to finance, the Bank offers financing solutions that support trade finance.

In line with the motto “The Second Address for Exporters,” supporting exporters’ access to finance was one of Türk Ticaret Bankası’s priority areas of activity in 2025. In this context, various financing products and solutions that strengthen the cash flow of companies engaged in trade finance and support pre-export and post-export processes have been effectively provided. Thus, Türk Ticaret Bankası continued to contribute to the strategic goals of increasing Türkiye’s foreign trade volume.

Technology and Efficiency Investments

In 2025, significant technology investments were made in credit underwriting management to improve process efficiency. To enhance the accuracy and efficiency of credit assessment processes, automation projects, such as the automatic transfer and cleansing of all financial data (including audit reports) into the system, have been implemented. In addition, to increase speed and standardization in credit underwriting processes, a limit allocation system based on an “automated decision tree” for the retail segment was created and implemented.

These investments significantly increased both operational efficiency and decision-making quality in credit assessment processes.

CREDIT MONITORING, REMEDIAL, AND LEGAL FOLLOW-UP

Proactive Risk Management and Technological Infrastructure

In 2025, Türk Ticaret Bankası strengthened its monitoring and legal follow-up processes with technological innovations to maintain the quality of its loan portfolio and minimize potential risks. The Bank has expanded its systems infrastructure to enable the early detection of borrowers who may experience difficulties repaying their loans and to take appropriate action in a timely manner.

Early Warning Signals (EWS) and Artificial Intelligence

The Early Warning Signals (EWS) project, designed in 2024 and moved to the software development phase in 2025, has become central to the Bank’s risk monitoring strategy. This micro- and macro-scale system, based on artificial intelligence and machine learning, analyzes companies’ financial indicators, bank borrowings, and market movements in an integrated manner.

Thanks to the project, which is targeted for completion in the first half of 2026, the aim is to instantly identify customers experiencing problems with cash flow management, determine the most appropriate action for each specific customer, and thus minimize losses. In the second phase of the project, predictive models will be run on the accumulated data to enable proactive measures to be taken at an early stage.

Additionally, special monitoring modules have been created for the commercial card, POS, treasury limits, and retail loans added to the Bank’s product range. In 2026, full integration of these products with the EUS project will be achieved, establishing an integrated risk monitoring structure.

Integration with the Risk Center and Data Quality

In 2025, the Monitoring Unit assumed responsibility for coordination between Türk Ticaret Bankası and The Banks Association of Türkiye Risk Center (RC). The Bank participates in workshops and “Idea Ambassadors” groups within the RC and KKB.

During this process, the quality of the data subject to mandatory reporting was improved, and the processes were automated. Notifications from the RC were integrated into the system, feedback mechanisms were renewed, and the Bank’s systems were updated. In 2026, the goal is to take an active role in innovations within the RC and to closely follow industry dynamics.

Remedial Activities

In 2025, systemic improvements were implemented to classify companies with detected cash flow deterioration and repayment difficulties into the correct segment. Automatic changes to customer classification ratings on the 30th and 90th days of loan delinquency were enabled; configuration screens were updated to accelerate processes.

As part of the early warning system, customers identified as high risk were reassigned to different segments to enable timely action, and receivables were prioritized through on-site customer visits. In addition to the payment plans prepared, additional collateral was obtained from the firms, and cash flows were balanced; loans that did not show improvement were diligently referred to legal collection.

Legal Follow-up Processes

The necessary policies and procedures for managing legal processes and coordinating operational transactions for the collection of receivables transferred to legal follow-up accounts were prepared and put into effect in 2025. In this context, the aim was to minimize losses by preparing enforcement, attachment, and other action plans for each company referred to legal proceedings.

Customers’ assets were identified without delay, and legal proceedings were promptly initiated against cash and non-cash asset movements inconsistent with customer declarations.

In line with the 2026 targets, agreements were reached with law firms to enable faster responses to fluctuations in economic conditions. The performance of law firms will be regularly measured, and their compliance with the Bank’s criteria will continue to be audited.

FINANCIAL MANAGEMENT

Effective Financial Management for Sustainable Growth

Türk Ticaret Bankası conducts the planning, management, and control of its financial structure in full compliance with international standards and legal regulations. Through its Financial Management Department, the Bank manages budgets, controls costs, prepares financial reports, and analyzes profitability using a holistic approach.

Core Activities and Strategic Approach

Türk Ticaret Bankası prepares annual and medium-term budgets to create revenue and expense projections, and regularly monitors budget realizations to conduct variance analyses. Compliance of expenditures with the budget and adherence to spending discipline are closely monitored, and financial control mechanisms are implemented in procurement and payment processes.

The Bank prepares monthly, periodic, and annual financial statements and presents the financial results to senior management and stakeholders. Statutory reporting to regulatory bodies, particularly the BRSA and the CBRT, is completed in a timely and complete manner.

Financial Management activities include determining accounting policies, ensuring compliance with Turkish Accounting Standards (TMS) and the Tax Procedure Law (VUK), and managing Core Banking System and ERP integrations. Additionally, the Bank’s performance is monitored through product and customer-based profitability analyses, and work is carried out in coordination with the Treasury and the Asset-Liability Committee in liquidity management processes.

Digital Transformation in Legal Reporting Processes

In 2025, a comprehensive digitalization project was implemented to increase the efficiency of legal reporting processes and minimize operational risks. A new statutory reporting infrastructure that eliminates manual intervention has been implemented; control processes have been strengthened with report-level working files and dual approval mechanisms.

Thanks to this infrastructure, the vast majority of the 349 legal reports submitted to the BRSA, CBRT, Ministry of Treasury and Finance, SDIF, CSD, TBB, and KBB were automatically generated and sent. The reports were subjected to system-based logical checks and cross-checks to ensure data consistency, and their speed, reliability, and regulatory compliance were maximized. Additionally, the user experience was improved and efficiency in business processes was increased with the new-generation report control system.

Accounting Infrastructure and Process Improvements

As part of the Bank’s restructuring process, the Uniform Chart of Accounts (UCA) definitions were completed in the Core Banking System, and the accounting records were brought into full compliance with Turkish Accounting Standards (TAS) and the Tax Procedure Law (TPL). Efficiency in procurement processes was increased; tax and legal liability payments, as well as third-party payments, were restructured in observance of the “segregation of duties” principle and efficiency standards.

To increase transparency and speed in expense management, expense request and approval processes were moved to a digital environment and standardized. Accounting configurations for new products were set up in the system and integrated into the financial reporting infrastructure. The independent audit reporting processes for the 2025 accounting period were also successfully conducted within the framework of legislation and auditing standards.

Strategic Management and Investor Relations

In 2025, the “Budget Module” was launched on the ERP system to digitize financial planning processes. The entire process, from collecting budget requests to monitoring budget realizations, has been digitized end-to-end, and a transparent structure has been established in which departments can track their expenditures in real time.

The expense budget and revenue projections were systematically managed in line with the Bank’s strategic goals. As part of profitability monitoring efforts, the analytical infrastructure has been developed; the aim is to carry out financial forecasting and actuals tracking for 2026 at the product level using flexible methods.

Two General Assembly meetings were held in 2025, and the Capital Increase process following the Extraordinary General Assembly was successfully completed. Additionally, the monitoring of the 2025 Action Plan was effectively carried out in coordination with the relevant Ministry.

OFFICE OF THE CHIEF LEGAL COUNSEL

Proactive Approach and Strong Legal Compliance

Türk Ticaret Bankası adopts a proactive approach to ensure legal security in all its activities, to adapt quickly to the changing regulatory environment, and to support sustainability. The Office of the Chief Legal Counsel, which identifies and manages legal risks in advance within the dynamic structure of the banking industry, provides comprehensive legal advisory services to Head Office departments and branches.

Meticulous and Effective Legal Services

Türk Ticaret Bankası meticulously reviews all contracts to which it is a party for legal conformity and regulatory compliance; in contentious processes, it determines strategies to protect the Bank’s interests and effectively manages judicial proceedings.

Regulatory changes are closely monitored and integrated into the Bank’s practices and policies in a timely manner, thereby ensuring that operational processes proceed smoothly on a legal basis. In 2025, intensive regulatory compliance work was carried out, particularly for digitalization projects and remote customer acquisition processes; new products, campaigns, and business processes were legally assessed, and the necessary infrastructure was established.

Digitalization and Efficiency

Türk Ticaret Bankası prioritizes technology-focused solutions to increase efficiency in business processes and strengthen risk management. In this context, the “Legal Program” project, which will enable holistic monitoring of litigation follow-up, the drafting of legal opinions, and process management activities, is targeted for completion in 2026. Through this project, all legal processes will be managed through an integrated digital system, enhancing operational speed and traceability.

Corporate Governance and Dispute Management

The General Assembly meetings, capital increase processes, and branch opening procedures conducted in 2025 were assessed within the legal framework and successfully executed. Notary procedures concerning the Bank’s authorized signatories and the registration and publication processes at the trade registry were carefully monitored.

Within the scope of dispute management, mediation applications, complaints, and lawsuits not related to accounts under legal follow-up are managed by the team of specialist lawyers in the Legal Counsel’s Office. The Bank’s representation before judicial and administrative authorities is carried out with an effective and results-oriented approach that prioritizes the institution’s interests.

Training and Awareness

Training activities aimed at increasing legal awareness throughout the Bank continued in 2025. In-house training was organized to inform employees about regulatory changes and legal risks, and the goal is to continue and expand the scope of this training in 2026.

EXECUTIVE OFFICE

The Strategic Center of Corporate Governance

The Türk Ticaret Bankası Executive Office undertakes the administrative and operational management of the decision-making processes of the Board of Directors, the Executive Committee, and related committees, in line with the Bank’s corporate governance framework. The unit conducts all its activities based on the principle of full compliance with legislation, the Bank’s internal regulations, and corporate governance principles.

Decision-Making Processes and Meeting Management

During the 2025 operating period, the Executive Office meticulously managed the processes of planning meetings for the Board of Directors, the Executive Committee, and other committees, as well as preparing agendas and meeting documentation. The processes of recording, archiving, and sharing decisions with the relevant executive units were carried out with a view to ensuring the continuity of corporate memory.

In decision-making processes, the necessary controls were provided within the framework of relevant legislation and the Bank’s internal regulations, laying the groundwork for the effective and efficient operation of governing bodies. Existing practices related to meeting and decision-making processes were reviewed during the year, and improvements supporting the continuity of document and decision management operations were implemented.

Policy Management and Regulatory Compliance

Within the scope of corporate governance practices, the currency of policies, procedures, and internal regulations is regularly monitored. In 2025, work on necessary regulations was carried out in coordination with relevant units and submitted for the approval of authorized decision-making bodies. During these processes, standards for maintaining documentation integrity and traceability were meticulously applied.

Additionally, internal coordination was ensured for processes related to notification and reporting obligations to regulatory authorities and relevant public institutions. Regulatory changes were closely monitored, their potential effects on the Bank’s practices were assessed, and the necessary compliance efforts were completed in a timely manner.

Türk Ticaret Bankası continues to carry out its activities aimed at ensuring its corporate governance structure operates in a sound, transparent, and accountable manner, in strong collaboration with all relevant units.

OPERATIONAL INFRASTRUCTURE

Flawless Operations Shaped by Technology

In 2025, in line with its digital transformation vision, Türk Ticaret Bankası strengthened its technological infrastructure, developed innovative platforms, and optimized its operational processes. The Bank has increased its investments in artificial intelligence, data analytics, and automation technologies to offer its customers a fast, secure, and personalized banking experience.

Operational Excellence and Centralized Management

In 2025, Türk Ticaret Bankası focused on centralizing branch operations and digitalizing processes. With the expansion of the branch network, the legal opening and authorization processes for 11 new branches were successfully managed.

A “Workflow Management System” was implemented, creating a structure in which transaction and document tracking is carried out via a centralized, traceable work queue. As part of the business process automation project, a total of 139 business processes were designed and moved to a digital environment. The corporate document architecture was strengthened, and over 700 policies and procedures were implemented. In 2026, the plan is to migrate trade finance, credit, and collateral processes to digital channels to enhance customers’ ability to perform self-service transactions.

Payment Systems and Integrations

Compliance with global standards in cash management and payment systems has been achieved. The transition to the ISO 20022 standard has been completed, and transparency in international money transfers has been enhanced through membership in SWIFT GPI. Integrations with CBRT FAST, BKM, KOLAS, and Secure Payment Services were completed, offering customers instant and secure payment options. Additionally, the “Commercial Credit Card” product and the “Bulk EFT/Wire Transfer” infrastructure were launched to meet the needs of corporate customers.

Credit and Trade Finance Operations

In credit operations, integrations with Türk Eximbank and the Ministry of Trade’s VRHİB, as well as SOFR- and TLREF-indexed loan infrastructures, were implemented. The “Electronic Letter of Guarantee (E-Letter)” product has been made available with integrations to public- and private-sector systems.

In foreign trade operations, system developments for İBKB and DAB processes were completed, and the document flow was digitized and accelerated through PTT REM integration.