VAKIFBANK
ANNUAL REPORT 2015
24
The Bank’s net interest income
rose by
17.95% between year-end 2015 and
2014 to reach TL 5.5 billion,
making a huge
contribution to the Bank’s profitability.
In accordance with our compassionate banking
approach, we also formulated bespoke
solutions for agricultural banking, and signed
loan protocols with numerous chambers of
agriculture. Within the scope of these protocols,
we offered chamber members the opportunity
to meet all of their requirements related to
agricultural operations with the Bank’s support.
Furthermore, we offered the Turkish Grain Board
(TMO) the TMO Kart, which provides immense
convenience to producers or merchants of
wheat, barley, corn and rice.
With our vast product range and extensive
branch network, we met the financing needs
of our commercial customers as well. As of
year-end 2015, there was a 20.80% growth in
commercial loans. In this period, we continued
to meet commercial customers’ financing needs
arising from investments and projects, thanks to
our vast know-how and experience in the field,
increasing our project loans by 54.71%. We also
signed the financing deal for İstanbul’s
3
rd
airport, the biggest project of the history of
the Turkish Republic.
In 2015, thanks to effective and dynamic
policies designed to expand our deposit base
and volume, we further reinforced our deposit
structure, bringing our total deposits to
TL 109,923 million by the year-end, in a growth
of 19.80% over the previous year.
With a view to diversifying funding resources,
decreasing interest rate risk, contributing to
liquidity management and extending the
maturity terms of financing facilities, we issued
bank bonds, notes as well as subordinated
loans.
Having already become the first Turkish
bank to initiate a global medium term
note program, VakıfBank made yet another
ground-breaking achievement in 2015
by issuing Turkey’s first overseas Basel
III-compliant subordinated loan in the
international markets. The USD 500 million
issuance in February 2015 had a maturity
date of 3 February 2025, having a call
option on 3 February 2020, and coupon
rate of 6.875% and issue yield of 6.95%.
This issuance earned us the first prize in
International Bond Issuance of the Year
category at the Bonds & Loans 2015 award
ceremony organized by Global Financial
Conferences (GFC), considered to be one of
the most prestigious awards for the Turkish
financial sector and capital markets.
We completed our work on residential mortgage
covered bonds recently introduced to Turkey,
and on 29 July 2015, established the
EUR 3 billion Residential Mortgage Covered
Securities Program (İTMK) which received an
A3 credit rating from Moody’s. In 2016, we are
planning to keep a close eye on developments
in the international markets, seize any
opportunities, and perform the first issuance
under the program.
In 2015, our shareholders’ equity also continued
its expansion to reach TL 16,768 million. Over
this period, by issuing subordinated loans, and
increasing shareholders’ equity by 13.51%, we
managed to bring our capital adequacy ratio up
to 14.52%.
We posted profits of TL 1,930 million. A
comparison of year-end 2015 with year-end
2014 reveals that net interest revenue, which
went up by 17.95% to reach TL 5.5 billion,
were key to the Bank’s profitability. During this
period, our net fee and commission revenues
grew by 29.85% year-on-year to reach
TL 921 million.
MESSAGE FROM THE GENERAL MANAGER
THE PROFITABLE BANK
THAT WORKS HARD TO WIN THE FUTURE
