VKF_FRAE_2017

PART I: INTRODUCTION 50 VakıfBank Annual Report 2017 VakıfBank meets the entire corporate banking product and service needs of its customers with a specialized sales and operational staff, wide product range, advanced technology infrastructure and efficient business processes. REVIEW OF OPERATIONS IN 2017 As the strategic solution partner to its clients, VakıfBank Corporate Banking was the strength by corporate customers in 2017. VakıfBank offers all the products and services required by its customers in the field of corporate banking by means of its expert sales and operations staff, wide range of products, upgraded technological infrastructure and business processes. »» INCREASE IN THE NUMBER OF CUSTOMERS VakıfBank Corporate Banking used a wide variety of offerings to achieve this objective, including direct debit system (DDS), card- based collection systems, dealership letter of guarantee agreements covering the dealer and supplier networks of corporate customers, and wholesale payment systems in accordance with the Bank’s strategy of growing and acquiring market share. Thus, the Bank made important progress in its striving to become the primary bank of corporate customers, their affiliates and subsidiaries. In addition, VakıfBank acquired numerous new customers among supplier and dealer companies, and companies in other areas of the financial value chain. »» PRIMARY BANK OF CUSTOMERS Serving in the corporate banking segment with a customer-focused sales and marketing strategy, a company-specific service approach and an approach that values customers as long-term business partners, VakıfBank also managed to increase its transaction volume in 2017 thanks to its “Being the Primary Bank of Customers” vision. Maintaining its high asset quality also in 2017, and continuing its loan support for real sector companies – which are determined via effective and healthy customer criteria used for selecting customers – VakıfBank achieved a 13% increase in corporate cash loans extended in 2017 while achieving a 14% increase in corporate non-cash loans. VakıfBank pursued an active policy in financing the high value added projects of its corporate customers in 2017, and created financing facilities by allocating long term cash and non-cash loans for customers’’ investments. Achieving a 25% increase in the project loans extended for customers in the corporate segment, VakıfBank continued to contribute to the development of the country’s economy and the real sector in 2017 as well. Thanks to the strategy of increasing cross selling to corporate segment customers, VakıfBank increased the volume of collection by 27% and boosted the volume of tax and social security collections by 24%. As the strength by its customers in every type of financial requirement, VakıfBank provides its corporate customers banking services such as project financing, treasury and cash management transactions, while its subsidiaries offer them factoring, leasing and insurance services. CORPORATE AND INVESTMENT BANKING There was a 25% increase in project loans extended to customers in the corporate segment.