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PART II: MANAGEMENT AND CORPORATE GOVERNANCE PRACTICES
Deposits, which exhibited a slight upward trend
in the third quarter of 2015, came to account
for 52.8% of the total funds of the banking
sector. Gaining momentum since the beginning
of 2015, the deposit growth rate rose further in
the final quarter. As a result, total deposits rose
by 18.3% on annual basis as of december 2015.
After exhibiting a downward trend from year-
end 2014 until july 2015, shareholders’ equity
closed the year at a 13% annual growth rate
in december 2015. The share of shareholders’
equity in total liabilities materialized as 11% in
the same period. The net profit for the period,
which had dropped in the first half of 2014,
tilted upwards in 2015 partially owing to the
base effect before losing steam in the third
quarter. As a result, the net profit for the period
had grown by 5.9% on an annual basis as of
december.
Against the backdrop of these developments
across the sector, VakıfBank expanded its total
assets by 15.63% over the prior year’s end to
TL 182,947 million. In 2015, loans once again
made the biggest contribution to growth. In this
period, VakıfBank expanded its total loans, the
core service of the banking business, by 17.86%
to the order of TL 122,974 million. As of year-
end 2015, commercial loans grew by 20.80% to
TL 86,364 million and retail loans by 11.45% to
TL 36,611 million, helping the Bank preserve its
position in the market. VakıfBank continued to
stand by SMEs in 2015 and kept up its consistent
growth in SME banking, expanding its SME loans
by 19.47% to TL 33,035 million.
Deposits, the Bank’s most important source of
funding, grew 19.80%, to TL 109,923 million
as of year-end 2015. Of this total, 69.57% was
in TL and the remaining 30.43% in foreign
currency. VakıfBank continued to secure foreign
financing with affordable terms in 2015. In
this scope, in april 2015, the Bank secured a
one-year syndication loan worth USD 1 billion
-in two tranches of USD 204 million and EUR
763 million- extended by a consortium of 35
banks. In the second half of the year, the Bank
obtained another one-year syndication loan,
worth USD 938 million -in two tranches of USD
168.5 million and EUR 679.5 million-, from
a consortium of 30 banks. These syndication
loans point to the trust and prestige enjoyed by
VakıfBank in international markets.
VakıfBank made yet another ground-breaking
achievement in 2015 by issuing Turkey’s first
overseas Basel III-compliant subordinated loan
(supplementary capital) issue in February. The
USD 500 million issuance had a maturity date
of 3 February 2025, having a call option on 3
February 2020, coupon rate of 6.875% and issue
yield of 6.95%.
Over this period, VakıfBank expanded its
shareholders’ equity by 13.51% to TL 16,768
million, and its net profit for the period by
10.09% to TL 1,930 million. As of year-end
2015, VakıfBank’s average return on equity
materialized as 12.24%, and its average return
on assets as 1.13%.
In another important development, VakıfBank
presented its disclosure to the Carbon Disclosure
Project (CDP) which focuses on climate change
strategy, risk management, and carbon
emissions. As a result of the assessment, in
the very first year we joined the program,
we received a disclosure rating of 91 over a
possible 100 in the C performance band, which
represents a very significant achievement.
We would like to thank our loyal customers, our
employees who have contributed to our success
with their diligent efforts, and our valued
shareholders who have always supported us.
Respectfully,
TÜRKİYE VAKIFLAR BANKASI T.A.O.
BOARD OF DIRECTORS
