Message from the CEO

Dear Stakeholders,

The year 2025, marked by geopolitical risks at the global level, volatility in financial markets, and tightening monetary policies, has been a period in which cautious yet determined steps were taken for the banking sector. As Ziraat Katilim, in this challenging environment, we maintained our strong ties with the real economy without compromising the principles of participation finance and continued our activities with determination through an approach centered on sustainable growth.

For our Bank, 2025 has been a year in which we strengthened our ability to adapt to changing economic conditions and advanced our stakeholder-focused approach to a higher level. While supporting our long-term value creation objectives with concrete actions, we preserved our disciplined balance sheet management approach and focused on improving our technological infrastructure, increasing the diversity of our products and services, and making our business processes more effective.

As we leave behind the 10th year of our establishment, the institutional maturity we have reached has been an important source of strength that facilitates the reflection of our strategic objectives into practice. Throughout 2025, in addition to our financial performance, we took significant steps in areas such as digitalization, sustainability, entrepreneurship, agriculture, and family banking.

These efforts have also demonstrated that our Bank acts with an understanding that not only manages the present but also builds the future.

In our Integrated Annual Report for 2025, we present to the evaluation of our valued stakeholders, with a transparent approach, the scope of the activities carried out throughout the year, our financial and operational results, and the main dynamics shaping the Bank's operations. This report constitutes an important reference documenting our contribution to the real sector and our journey of sustainable growth in line with our participation finance approach.

Ziraat Katilim adopts an approach that considers customer expectations, sectoral needs, and economic priorities together within the framework of its operating model based on participation finance principles. Our Bank, which continues to strengthen its position regionally while aiming to increase its effectiveness in international markets, followed strategies throughout 2025 to enhance diversity on the funding side. These strategies contributed to the management of funding costs, while maintaining a controlled growth approach on the asset side.

Thanks to the balanced growth policies and prudent balance sheet management implemented during the period, our total asset size, which stood at TL 515 billion in 2024, increased by 49% to reach TL 769 billion in 2025. On the profitability side, net profit increased by 67%.

As of year-end, cash funds increased by 53% to TL 490.7 billion, while non-cash fund volume rose by 33% to TL 154.7 billion. As a result of these developments, the total amount of cash and non-cash financing provided by our Bank to the Turkish economy reached TL 645.4 billion. Within the cash funds extended, significant support was provided to the agricultural sector, and total financing volume in this field reached TL 45.5 billion as of the end of 2025. During the same period, funds collected increased by 44% to TL 513.4 billion.

As Ziraat Katilim, we also maintained our sector leadership in financial leasing. As a participation bank that guides the sector, we successfully implemented our policy of broadening the base in financial leasing receivables and increased our share in the retail segment from 41% to 43%.

Considering the long-term structure of financial leasing loans and expectations of declining inflation, the loans extended are expected to become more efficient in the coming period.

Ziraat Katilim Sustained Its Growth by Strengthening Its Presence in Physical and Digital Channels.

Ziraat Katilim provides its customers with multi-channel access through its physical branch network, digital channels, and innovative products. This approach both increases customer satisfaction and accelerates new customer acquisition. Over the ten years since our establishment, we have continued to act with the vision of increasing our own share while supporting the growth of the sector, as an institution that directly contributes to the development of participation banking.

Our Bank maintained its stable growth in the participation finance sector, reached a significant market share, and took determined steps in 2025 to expand its service network. With 17 branches opened during the year, the total number of branches reached 227, including 2 overseas branches providing services across 66 provinces in Türkiye. Through the Digital Branch service model, customers were also provided with access to all banking services without the need to visit a physical branch.

Ziraat Katilim, which commenced operations on 29 May 2015 as Türkiye's first publicly owned participation finance institution, has made significant contributions to the economic development of our country over its ten-year journey by combining the deep-rooted heritage of the Ziraat brand with an innovative participation finance approach. On the occasion of our 10th anniversary, we held the first outdoor events at the Istanbul Finance Center at Ziraat Towers. We came together at these meaningful events with members of the public protocol, senior executives of Ziraat Finance Group, our customers, invited guests, and our colleagues.

As part of our anniversary activities, we also organized the Participation Finance Summit at Ziraat Towers, with the participation of many panelists and guests from Türkiye and abroad, where current developments in the finance sector were evaluated. The outcomes of the Participation Finance Summit, which we organized to contribute to the construction of a fairer, more ethical, and more sustainable financial future, were compiled into a book to be included in academic literature.

We Diversified the Innovative Products and Services Offered to Our Customers.

In 2025, we continued to diversify our products and develop innovative solutions to address the varying needs of our customers across retail, commercial, and corporate segments. In this context, with the "Secure Payment System - Operator Bank" project, we enabled the purchase and sale of second-hand vehicles to be carried out securely and simultaneously through notary integration. While introducing our "Shared Account" product, which offers dual-channel returns to qualified investors, we also added the "Social Media Content Creator Account" and the "Home Production Account" to our product portfolio.

Within the scope of the "Year of the Family" we launched the "Family Support Package" covering financing needs related to marriage, housing, and general expenses. In the field of cash management, we successfully completed the "Request to Pay" and "Virtual IBAN" projects. Our fast and flexible "Easy Financing" product for retail customers stood out during the year, while in the real sector, our "Agricultural Financing, Financial Leasing, and Export Financing" products received strong demand.

Our "Katilim Dijital" platform, which we introduced at the end of 2024 to support the digitalization processes of businesses, reached nearly ten thousand tradesmen and SMEs in 2025, facilitating their e-transformation processes in line with participation finance principles.

In the field of investment banking, we renewed our MTN (Medium Term Note) Programme and issued sukuk totaling USD 1.1 billion, while Ziraat Katilim Varlik Kiralama A.S. received approval for an issuance ceiling of TL 80 billion. In the same period, following Fitch Ratings, Ziraat Katilim also received its first credit rating from Moody's Ratings, further strengthening its international reputation.

Multi-Dimensional Programs Supporting the Real Sector's Access to Finance Were Put into Effect.

During 2025, comprehensive steps were taken to support the investment, production, export, and capacity development needs of the real sector. In this context, numerous financing programs based on cooperation with public institutions, international financial organizations, and guarantee mechanisms were put into effect.

KOSGEB-supported financings, the Capacity Development Support Program, and the Global Competitiveness Support Program were actively utilized to enhance the competitiveness of SMEs and exporting companies. In addition, working capital needs of companies engaged in foreign trade were met through the Interest-Free Pre-Shipment Export Financing supported by the Export Credit Bank of Türkiye (Eximbank).

In order to support the defense industry ecosystem, the Defense Industry Suppliers Financing and the KFK Shareholders' Equity-Based Defense Industry Support Packages were introduced. In the same period, access to finance was facilitated by strengthening risk sharing through guarantees provided by Katilim Finans Kefalet A.S.

All these supports made significant contributions to the preservation of production capacity and the continuity of employment for companies.

Inclusive Financing Solutions Were Offered to Strengthen the Entrepreneurship Ecosystem.

Through our financing solutions aimed at strengthening the entrepreneurship ecosystem, access to finance was supported for micro-scale enterprises, tradesmen and craftsmen, women's cooperatives, and women entrepreneurs.

Sub-protocols prepared under the main protocol regarding Treasury-backed and equity-backed guarantees, signed between Katilim Finans Kefalet A.S. and our Bank, were executed and put into effect. Within the scope of this cooperation, the "KFK Micro-Scale Tradesmen/Women Entrepreneur Support Package" developed in line with participation finance principles, was offered to our customers. With this package, it was aimed to facilitate access to finance for micro-scale enterprises, tradesmen and craftsmen, self-employed professionals, women's cooperatives, and women entrepreneurs. At the same time, it was intended to enable women's cooperatives and women entrepreneurs to participate more effectively in the participation finance ecosystem.

Within the scope of the "SME Value Proposition" project, it was aimed to provide our SME customers with active and solution-oriented advisory services in the areas of digitalization and institutionalization. Through this project, the guidance capability of our branches toward SMEs was strengthened. These efforts supported the competitiveness and sustainable growth of SMEs.

Ziraat Katilim has considered the agricultural sector as a strategic area in terms of production and rural development, in line with participation finance principles. Through subsidized and non-subsidized agricultural financing products, producers' needs for modernization, planned production, and efficiency were supported.

Within the scope of the protocols signed with Katilim Finans Kefalet A.S., access to finance for producers was facilitated through the "KFK Collateralized Agricultural Financing" product. With its structure based on risk sharing, the product contributed to strengthening rural development and sustainable production models.

Financing solutions focusing on environmental impact, including planned production, pressurized irrigation systems, and renewable energy investments, were prioritized. Through practices supporting low-carbon production, it was aimed to provide producers with long-term cost advantages. While repayment capacity was considered through maturity structures aligned with production cycles and cash flows, financial stability against climate- and disaster-related risks was supported through insurance solutions provided under TARSIM.

Operational efficiency was improved through digital application and monitoring processes, data-based risk analysis, and remote access solutions. With financial literacy and advisory activities, agricultural banking in 2025 was transformed into a structure that not only provides financing but also guides and creates value.

Activities Creating Environmental and Social Value Were Carried Out in Line with the Sustainability Perspective.

Ziraat Katilim conducts its sustainable finance approach within a holistic framework that supports economic development while considering environmental and social impacts, in line with participation banking principles. In its financing activities, our Bank adopts an approach aligned with sustainable development goals, based on supporting employment, real sector production, and long-term value for stakeholders.

The management of climate-related financial risks and sustainability-themed financing have become key focus areas for the banking sector. As the volume of sustainability-themed financing instruments increases, financial institutions are expected to manage their portfolios in line with a low-carbon and climate-resilient economic structure.

In line with the 2053 Net Zero Emissions target, Türkiye has started to take a more active role in international processes related to climate diplomacy and the mobilization of development investments. Concrete steps such as the planned hosting of the 31st Conference of the Parties (COP31) under the United Nations Framework Convention on Climate Change in 2026 and the adoption of the Climate Law demonstrate the country's strong commitment to climate action and sustainable development goals.

During 2025, regulations introduced by supervisory authorities in various areas of sustainability have established a more systematic framework covering the integration of climate-related financial risks into banking activities, reporting standards for green finance, and sustainability-related obligations. In this context, Ziraat Katilim considers sustainable finance and climate-related practices as fundamental components of its business model. Climate- and environment-related risks are incorporated into risk management and financing processes, financing products are diversified, and reporting practices are developed in line with national regulations. Within this scope, customers' green transformation processes are supported through sustainable financing products developed in areas such as energy efficiency, renewable energy, green housing and vehicles, and wastewater recovery.

As a concrete reflection of our environmental responsibility, we launched the "Ziraat Katilim Memorial Forest" project in celebration of the 10th anniversary of our establishment. Within this project, 10 saplings were planted on behalf of each employee, resulting in a total of 30,000 saplings brought to nature, leaving a meaningful legacy for the future.

Within the scope of its digital transformation journey, our Bank continued to improve its processes across a wide range of areas, from foreign trade transactions to retail banking. Operational efficiency was enhanced through robotic process automation in foreign trade and early-stage transfer monitoring capabilities, while customers were provided with faster and more predictable services.

At the same time, the effectiveness of our digital channels has been continuously strengthened,

and transaction security as well as customer experience have been advanced to a higher level. Demand for our Katilim Dijital product increased, and improvements made in our Digital Branch service model further facilitated customers' access to banking services without the need to visit a branch. The project process of our mobile banking application, "Katilim Mobil 10.0" was successfully completed. With its renewed version, user experience was enhanced, making our digital services faster, more comprehensive, and more accessible.

We Strengthened Our Family Banking Approach in Line with the 2025 Year of the Family Vision.

In line with the declaration of 2025 as the "Year of the Family" by the Presidency, our Bank enhanced its family-oriented products and services through a holistic approach. In this context, participation-based foreign currency funds included in portfolios in cooperation with Ziraat Portf'y provided our customers with alternative savings opportunities.

Within the framework of the "Family Banking" approach, discounted services covering family members, advantageous insurance solutions, and the "Family Support Package" designed for marriage, housing acquisition, and general needs were introduced. In the Private Banking segment, the structure of family-focused products, services, and advisory activities was further strengthened. Through new collaborations, healthcare-related services, and improvements in digital channels, customer experience was developed into a more comprehensive and sustainable structure.

We Increased Our Sectoral Interaction Through Strategic Collaborations.

Throughout the year, Ziraat Katilim maintained its engagement with public and private sector stakeholders through fairs and events in which it participated and established collaborations with various sectors in line with the protocols signed.

During the IDEF'25 International Defence Industry Fair, meetings were held to evaluate the potential of participation finance to create shared value with different sectors. In this process, contacts with stakeholders in the technology and defense industry ecosystem were strengthened. Within this scope, the protocol for the "ODAK PostgreSQL Database Management Platform" supporting the use of domestic and national technologies developed together with Havelsan, was signed. Through this cooperation, an important step was taken to enhance institutional capacity in the areas of data security and digital infrastructure.

We Hosted Platforms Strengthening Our International Finance Dialogue.

Ziraat Katilim hosted the Türkiye'Malaysia Finance Summit 2025, organized in cooperation with ADFIM and ADFIMI, as well as the Islamic Finance Briefing meeting held in collaboration with Moody's Ratings and the Participation Banks Association of Türkiye (TKBB), at the Istanbul Finance Center Ziraat Towers.

During these programs, which brought together representatives of the international finance community, key topics such as the role of development finance in line with sustainable development goals and the support of SMEs were discussed. In addition, current developments in inclusive economic growth, climate and social impact investments, and Islamic finance and sukuk markets were evaluated.

These events, attended by senior representatives of domestic and international financial institutions, analysts, and sector stakeholders, encourage knowledge sharing and cross-border cooperation. The organizations stood out as important platforms strengthening global visibility and strategic position of participation finance.

In 2025, Ziraat Katilim continued to create social value through its activities in the fields of education, culture, and social awareness, in line with its understanding of sustainability and social responsibility. In this context, the renovation project carried out by our Vefa Group at Ince kaya Secondary School in the Sirvan district of Siirt was completed, improving the school's educational environment. With the establishment of a computer classroom and renewed equipment, students' opportunities were strengthened.

Within the scope of the book donation campaign organized with the contributions of our colleagues, the collected books were donated to the library of the Adem Sahan Guidance Hall at Kahramanmaras Science High School, which keeps alive the name of our colleague whom we lost in the earthquake, thus providing a lasting contribution to education.

In order to enhance the technology and innovation capabilities of young people, strategic support was provided to platforms such as Teknofest, Icathane, and the Türkiye Entrepreneur Awards. Contributions were also made to the Digital Istanbul project to support the preservation of cultural heritage, and the calligraphy exhibition titled "Adil-i Mutlak," focusing on the theme of justice, was presented to art enthusiasts.

In addition, with the support of our Bank, participation was provided with the Ziraat Katilim Cycling Club in the commemoration event organized in cooperation with the July 15 Association and the Cycling Federation, contributing to awareness activities aimed at preserving the spirit of national unity and solidarity.

Together with our stakeholders, we continued with determination in 2025 to create shared value with a sense of social responsibility and to contribute to sustainable development.

I would like to thank all our colleagues and stakeholders who contributed to the implementation of our sustainability approach throughout this process.

Despite global and national uncertainties, 2025 has been a year in which we strengthened our financial resilience, accelerated our digital transformation steps, deepened our customer-focused service approach, and expanded practices that consider environmental and social impact.

All activities included in this report reflect the concrete results of the determined and holistic steps taken by our Bank in line with its mission, vision, and participation finance principles.

As we leave behind the 10th year of our establishment, the institutional maturity we have achieved provides us with the strength to build the strategies of the future based on the experience of the past. By combining the enthusiasm of our first day with ten years of experience, we will continue to contribute to Türkiye's economic vision and to support the growth of the participation finance ecosystem.

We are pleased to share this report with the public, in which we present our activities for 2025 from a comprehensive perspective. I would like to thank all our stakeholders who have shared in our achievements and emphasize that we will continue to create long-term value for our stakeholders in the coming period.

Kind regards,

Metin 'zdemir
CEO