General Manager’s Message

September 2023

KOOPBANK CELEBRATES ITS ANNIVERSARY

Koopbank is celebrating its 64th anniversary. Established on September 9, 1959, with the partnership of 196 Turkish Cypriot cooperatives, the bank continues to be the leading financial institution in our country's banking sector.

In a statement made on the occasion of Koopbank's 64th anniversary, General Manager and Board Member Kemal Ataman noted that the bank, which was founded with a single branch on September 9, 1959, now has 20 branches across the country. He stated that Koopbank holds the top position in the North Cyprus banking sector in terms of both deposit and credit volume as well as balance sheet size.

Mr.Ataman pointed out that Koopbank holds one of the largest shares in the banking sector. With a balance sheet size exceeding 30 billion Turkish Lira, 1.4 billion Turkish Lira in equity, and a solid capital adequacy ratio, the importance of the bank within the country’s economy and its standing among the public is clearly evident. Mr. Ataman noted that they have a loyal customer base exceeding 145,000, most of whom are cooperative volunteers. He stated that since its establishment, the bank has represented a family that stands by its people, cherishes these lands, and grows the future together.

"WE HAVE REACHED THIS POINT BY PRESERVING OUR CULTURAL VALUES AND STABLE BUSINESS UNDERSTANDING"

Emphasizing that the bank's 64-year history parallels Cyprus's development, Mr. Ataman pointed out that Koopbank has, in a sense, witnessed all the major historical milestones of the country. He stated that Koopbank was founded with the mission of guiding the development of society through cooperatives and alongside them. Mr. Ataman explained that over the 64 years, the bank has reached significant milestones by preserving its cultural values, business style, economic mission, and stable business approach. He highlighted that Koopbank represents trust within the community, noting that this is not a coincidence. Mr. Ataman added that the fact that nearly one-fifth of the country's deposits are entrusted to Koopbank is the greatest proof of the trust placed in the bank.

"BEING THERE IN DIFFICULT TIMES IS OUR FUNDAMENTAL VIRTUE"

Highlighting that the country is going through a challenging period marked by inflation pressures both post-pandemic and on a global scale, Mr. Ataman said, "We were not established as a bank to make a profit 64 years ago; we were founded to support the economy and meet the needs of society. Therefore, I can clearly state that neither our commercial goals nor our desire for profitability can override the interests of our country and its people. The cooperative culture in which we have been immersed for years has instilled this in us". Mr. Ataman mentioned that Koopbank has always utilized all its resources, experiences, and accumulations for the benefit of the country's economy. "Our approach is not only to share in the community's prosperity but also to share its difficulties. As an institution that has earned all its equity from this country, we are well aware of our debt and responsibilities to this country. If the power of this bank is needed, it is for difficult days; this is our fundamental virtue," he said.

"STABILITY ACHIEVED IN REPAYMENT OF PUBLIC LOANS"

Assessing the financial data for the first half of 2023, Mr. Ataman noted that they achieved consistent results with their set targets in terms of growth, profitability, maintenance of asset quality, and capital management. Mr. Ataman stated that the prudent, balanced, and long-term approach adopted in all areas played a significant role in achieving successful outcomes.

Pointing out that the contraction in new loan demand should be considered normal in this special period, Mr. Ataman stated that after the new economic program in Turkey also reflects on Northern Cyprus, the economy will start turning at the desired level again, and during this time, they must overcome these difficulties together by sharing them. He mentioned that they will continue to support the market with advantageous loans and restructurings.

Mr. Ataman emphasized that clear stability has now been achieved regarding the repayment of public debts to the bank, which has been their primary goal for years. "In the last four years, our state has made payments amounting to 885 million Turkish Lira, and more importantly, the payments are now scheduled. Every collection on public debts will eventually turn into an investment for the further development of this society and provide significant support in offering the public much more affordable loans. Our gain is the country's gain," he said.

"WE CONTINUE OUR GUIDING ROLE IN FINANCIAL TECHNOLOGIES"

Mr. Ataman also provided information about Koopbank's digitalization efforts. Noting that the world is rapidly digitalizing in a way that will change all known values in the global economy, Mr. Ataman stated that Koopbank continues to play a guiding role in this area as well. Emphasizing that financial technologies are now centered around mobile phones, Mr. Ataman made the following assessment:

"We foresaw many years ago that the future of banking would be conducted via mobile, with mobile phones becoming mobile wallets. By focusing in this direction, we launched KoopCep, which is now widely appreciated and used by everyone, followed by our mobile wallet application, HEPi. Through HEPi's QR code payment technology, we introduced our community to a brand new payment method. Now, we are raising the bar even higher by opening our digital services to platforms operated by financial technology organizations. The first example of this is our participation in the Paycell digital wallet project through bank integration. Although Paycell may seem like a competitor to our own HEPi application, the technological support we provide to Paycell will contribute to the development of the financial technologies ecosystem in our country, allowing all stakeholders to benefit from it."

"ONE OF OUR MAIN DUTIES IS TO SUPPORT THE AGRICULTURE AND LIVESTOCK SECTOR"

Mr. Ataman emphasized that one of their main duties is to support agriculture and livestock, stating that they are making great efforts to provide traditional, effective, and comprehensive service in this area. Reflecting on the agricultural and livestock sector, which is largely supported by loans provided by Koopbank, Mr. Ataman said, "We must accept that in this challenging field, especially in the difficult period we are currently experiencing, farmers and livestock breeders face difficulties in accessing the credit they need due to high costs. Since our establishment, the most important point for us has been to support farmers and livestock breeders to ensure the continuation of production and productivity in the country. Everyone can be assured that we will more than fulfill our responsibilities in this regard by working together with our Ministry of Agriculture and other relevant institutions."

“OUR EMPLOYEES ARE THE MOST IMPORTANT ASSET OF OUR BANK”

Emphasising that Koopbank has historically always placed great value on its employees in every period and has always regarded them as the wealth of the bank, Mr Ataman said: ‘In the last six years, we have achieved a more efficient, more agile and economical structure by reducing the bank's staff. In the recruitment of new personnel, we now employ people who are selected on the basis of both fairness and qualifications through a written and oral examination system. These radical changes in our personnel policy have been decisive in the financial results we have achieved. We are criticised from time to time when the balance sheets are compared and it is seen that our personnel expenses are higher than those of other banks; we do not oppress our employees against the cost of living, we want them to maintain a reasonable quality of life. They deserve this and they repay it with their performance.’

“WE ARE PROTECTING COOPERATIVES AGAINST COMPETITION WITH THE SERVICE BANKING MODEL”

Highlighting that cooperativism is a rising value worldwide, Ataman stated, “As Koopbank, we are making great efforts to fulfill our responsibilities to cooperatives thoroughly. In addition to the services we have traditionally provided for years, we also offer comprehensive service and support in the field of financial technologies without expecting anything in return. Until now, we focused on cards, ATMs, and internet banking; we are now elevating the scope by providing service banking.” Mr. Ataman said that cooperatives are now achieving significant savings by accessing many banking services offered by Koopbank to its customers through the service banking platform, and through the digital services provided, cooperatives can now directly use payment of invoices, credit card collections, electronic transfers (EFT), and dozens of other services from the software they are already using.

“WE ARE RENEWING OUR BRANCHES”

Mr. Ataman stated that they have begun renewing some branches in order to provide customers with a higher quality and more comfortable service, while some others will be relocated to new locations to increase service quality. He noted that the completely renovated Nicosia Yenişehir Branch has opened for service, that the Ortaköy Branch has been moved to a larger location in Dereboyu, Nicosia and that it will become operational next week. He also mentioned their goal to relocate one branch in Girne and one branch at Eastern Mediterranean University to a new, larger venues.

“SERVING THE COMMUNITY IN EVERY AREA IS A PART OF OUR MISSION”

Ataman emphasized that Koopbank is a bank that operates with the understanding of giving back to the community from which it always receives, stating that they continue to add value to the country not only through economically viable activities but also through social responsibility projects they implement in the fields of education, environment, sports, culture, and arts. Mr. Ataman highlighted that they host a structure with Koop Sports, which provides opportunities for young people of all ages to engage in sports, and that they have achieved great successes by adding color to the country's basketball with six teams at various levels. He also noted that the bank has never been insensitive to the needs of the community, expressing that they stand by every segment that is in need.

Mr. Ataman mentioned that they are sponsors of an important project conducted by the Women's Story Association to document the life stories of women who add value to the country, to carry the past into the future, to inspire new generations, and to contribute to the social memory. He expressed that they are happy to contribute to the documenting of the values of the country through the lives of these women. He also stated that they find women's cooperative formations very valuable and that they closely follow and support the activities of women producers with appreciation.

'’KOOPBANK IS THE VALUE OF THIS COUNTRY THAT MAKES US WHO WE ARE‘’

Emphasising that Koopbank is a big family that has been working and producing together with its people for 64 years, Mr. Ataman said, ‘We aim to carry out our activities on the axis of healthy growth and sustainable profitability in the coming years. We will continue to work tirelessly with the same enthusiasm and excitement as on the first day, and to be the leading bank of Northern Cyprus with innovative financial products and services. The most important thing is our determination to carry our values, co-operative culture and sincerity to the next generations.’