VKF_FRAE_2017

403 VakıfBank Annual Report 2017 Adopting a profitable, efficient and high- quality growth strategy, VakıfBank, with its vision to be the Leader Bank of Strong Turkey, continues its services with 16,097 employees in 927 branches as of 2017 year end. »» ASSESSMENT ON THE ASSETS VakıfBank continued the growth in its assets also in 2017 while its assets increased by 27.30% compared to the previous year-end and reached TL 270,572 million. When we examine the structure of the total assets we see that total loans with 67.61% share are the most important item in the assets. In 2017, VakıfBank’s performing loans, the fundamental intermediary function in the banking sector, increased by 24.77% and reached TL 182,932 million. Some 73.79% of total performing loans are composed of commercial loans while 26.21% is composed of retail loans. VakıfBank increased its commercial loans by 27.84% while increasing retail loans by 16.85%. When we examine the structure of retail loans, we see that mortgage loans increased by 11.68% while auto loans increased by 4.19%, and general consumer loans increased by 21.07%. In 2017, VakıfBank’s non-performing loans ratio was 4.01%. In the same period, VakıfBank’s securities portfolio increased by 16.60% and reached TL 30,316 million. The share of the securities portfolio in the assets is 11.20%. »» ASSESSMENT ON THE LIABILITIES In 2017, while VakıfBank’s total liabilities increased by 27.30%, the increase in deposits was 25.39%. The share of deposits in total liabilities amounted to 57.39%. The most important item in the funding structure is deposits amounting to TL 155,277 as of year-end 2017. Some 80.60% of the deposits are term deposits while 19.40% is demand deposits. Diversifying the sources of funds and performing effective cost management, VakıfBank increased the securities issued DISTRIBUTION OF ASSETS (%) 0 20 40 60 80 100 2017 2016 2015 2014 2013 Other Securities Loans Cash Reserves 15.95 15.46 16.01 14.65 63.84 65.95 4.21 3.94 14.60 13.29 15.59 13.37 12.23 11.20 67.22 68.98 67.61 4.81 5.49 5.60 Shareholders’ Equity Funds Borrowed (including Subordinated Loans) Securities Issued Deposits Other DISTRIBUTION OF LIABILITIES (%) 0 20 40 60 80 100 2017 2016 2015 2014 2013 57.99 10.79 6.61 9.34 15.27 60.08 12.42 5.77 9.17 12.56 58.27 13.75 6.92 9.05 12.01 57.39 7.20 8.60 14.16 12.66 60.17 9.87 5.08 9.31 15.56 EVALUATION OF THE BANK’S FINANCIAL POSITION, PROFITABILITY AND SOLVENCY