Dear Distinguished Members, Valuable Employees, and Esteemed Business Partners,
In 2019, the global economy weakened due to the effects of trade wars, Brexit uncertainty, and geopolitical risks emerging in various regions around the world, particularly the Middle East. According to the World Bank, the global economy expanded just 2.4% in 2019, its slowest pace in recent years. With the impact of the COVID-19 pandemic which emerged in December in Wuhan, China, the world economy is expected to face even more challenges in the coming year.
Rebalancing in the Turkish economy
In 2019, Turkey’s economy left behind a period of macroeconomic rebalancing. After making headway in fighting inflation and reducing the current account deficit, the Turkish economy recorded 0.9% growth in 2019 supported by private and public consumption expenditures. The government’s fast and effective response to emerging risks instilled widespread confidence in the country’s future economic outlook. At OYAK, we have no doubt that Turkey’s economy will return to sustainable growth in the following period.
We add value to the savings of more than 418 thousand members
Despite volatility in the global economy, OYAK continued efforts in 2019 together with its Group Companies around the world to provide a secure future and create prosperity for its more than 418 thousand members.
In 2019, OYAK focused on profitability in order to add value to the savings of its members and further expand member services. These are our core objectives every year. Our human resources – a dynamic workforce of 32 thousand well-qualified employees – strived to provide a prosperous future for our members by successfully executing our business operations in various world regions in line with our shared goals.
A model organization in supplementary occupational pension funds
As one of the world’s most successful supplementary occupational pension funds, OYAK effectively utilized the hard-earned savings of its members in key investments in 2019 while consistently managing its assets using rational portfolio management. During the year, OYAK made investments while supporting the development of Turkey’s economy and prioritizing areas of strategic importance for our country.
OYAK succeeded in distributing sustainable dividends due to its profitability. OYAK continued to instill confidence among its membership by providing a 20.5% rate of return.
Steadily growing its businesses across different regions of the world, OYAK Group demonstrated a successful financial and operational performance during the year.
As of year-end 2019, OYAK reported total assets of TRY 118.3 billion. OYAK increased revenues to TRY 48.8 billion, while contributing significantly to the Turkish economy with exports amounting to 2.7% of Turkey’s entire export volume, amounting to USD 4.9 billion. During the year, OYAK expanded its membership base by 15.3%, recording 418,455 members at year-end. Some 81.9% of OYAK members (342,797 persons) are actively working; meanwhile, 18.1% (75,658 persons) are covered by the OYAK Pension Benefit System. At end-2019, 65.4% of OYAK members (273,758 persons) are voluntary members and 34.6% are compulsory members (144,697 persons).
Compulsory (legal) benefits paid to OYAK members totaled TRY 4,057.2 million. In 2019, OYAK paid:
TRY 2,190.6 million in Retirement Benefits to 6,833 members, who became eligible to receive retirement benefits and exited the system;
• TRY 1,424.3 million in Pension Benefits to 58,037 members in the Pension Benefit System;
• TRY 335.0 million to 2,294 members who exited the Pension Benefit System either due to death or voluntarily, or chose to reduce their share;
• TRY 13.2 million in Disability Benefits to 274 members;
TRY 27.2 million in Death Benefits to the legal heirs of 518 deceased members;
• TRY 66.9 million in refunds on contributions to 5,396 members who exited the system following a membership period of more than three years and less than 10 years.
Our top priority: Member satisfaction
Conducting its business operations in line with the needs and expectations of its members, OYAK has successfully provided Housing Acquisition Services since 1963.
To date, OYAK has delivered housing acquisition services for 107,114 members. In 2019, OYAK continued work on the OYAK Göksupark Housing Project, consisting of 1,876 residential units located in Etimesgut, Ankara, in line with the planned schedule.
I would like to take this opportunity to announce that we will start delivering these units to title holders in July 2020. In addition, project development efforts are ongoing for Seyirce Housing Project, which consists of 375 residences in Sincan, Ankara; 370 thousand square meters of real estate in Bademler, Urla, Izmir; and a 1.5 million m2 real estate project in Çiftlikköy, Yalova.
Committed to maximizing member satisfaction, we launched the OYAK Platform in 2019. This innovation is designed to facilitate member access to services in line with OYAK members’ demands and needs. Single-point access was provided for OYAK Health Platform (OSP) Contracted Medical Institutions and OYAK Education Discounts via the OYAK Platform for OYAK Family. Exclusive promotional campaigns featuring OYAK Group Companies’ products and services were also presented for members on the new platform.
After launching on October 29, 2019, OYAK Platform’s user base climbed to 62,145 by year’s end. During the year, 1,349 users benefited from products and services found on the platform. Meanwhile, a total of 25,541 interactions were made between Group Companies and members via OYAK Platform in 2019.
Member communication channels that support mutual trust
OYAK successfully conducts member communication efforts in order to strengthen the bond with members and fosters mutual trust. During the year, we proceeded with digital transformation investments to boost member communication efforts. We recorded 47.3 million member interactions via all available communication channels as of year-end 2019.
OYAK reached out to 106,819 members via four live stream events online during the year. We also informed 42,098 members about OYAK services at 219 conferences held across the country in 2019. In addition, we initiated visits to gendarmerie and border posts for the first time this year. With a total of 38 visits, we personally met with our 570 members who serve at these posts.
In 2019, we updated our corporate website – one of the most important channels for member communications. Making a difference with its innovative design and user experience, the corporate website recorded 6 million visitors as of year-end. Meanwhile, the OYAK Mobile Application, an indispensable means of communication in today’s world, increased its user base to 351,271 in 2019. Members accessed their personal accounts by logging into Online Member Services 5,928,591 times via the OYAK website and 15,948,406 times via the OYAK mobile app during the year. OYAK aims to further improve its communication and service channels in the coming year to support its members.
Providing sustainable benefits to OYAK members in line with our founding mission
In 2019, OYAK made new acquisitions, implemented new partnership structures and adopted operational data analysis processes as part of its digital transformation and focus on big data. We launched initiatives to expand production capacity and innovative projects to boost added value. Once again, OYAK experienced the pride of providing a sustainable rate of return for its members. Effectively managing risks and opportunities in light of its well-established corporate culture, OYAK continued to take major steps forward to become a global brand. With great pride and happiness, I would like to draw your attention, as our valued stakeholders, to our exceptional progress toward becoming a global brand this year. With its multinational and multicultural corporate vision, OYAK is Turkey’s biggest and most successful example of supplementary occupational pension funds.
On behalf of myself and the OYAK Executive Board, I would like to express my sincerest gratitude to our members who supported our 2019 business operations and our ongoing 59-year success story, our esteemed board members, our managers, and our employees who serve OYAK with complete dedication. It is my wish that our achievements will continue to grow in the days that follow.
(Ret.) Major General
Chairman of the Board of Directors