VKF_FRAE_2017

PART I: INTRODUCTION 52 VakıfBank Annual Report 2017 VakıfBank increased the number of its commercial customers by 5.28% in 2017, by focusing on providing faster and higher quality services through innovative, alternative financial solutions. REVIEW OF OPERATIONS IN 2017 Serving large-scale enterprises that are in the target group in the segment as well as public institutions and enterprises through its Commercial Banking business department structured under the Commercial and Corporate business line, VakıfBank maintained its steady and broad-based growth in 2017 with products and services customized according to customer expectations and needs. »» STEADY GROWTH VakıfBank devised its Commercial Banking business line strategy and action plan with a focus efficiency and profitability. As a result, the Bank expanded its customer base while giving a major boost to the cross-selling ratio and segment profitability. With its dynamic and expert human resources, the Bank not only met the expectations and needs of its customers but also focused on offering innovative and alternative financial solutions, increasing the number of commercial customers by 5.28% in 2017. Offering customers financing solutions suited to their financial structure thanks to a vast product range and wide branch network, VakıfBank expanded its commercial cash loans by 32.57% and non-cash loans by 36.34% as of year-end 2017. As a result of the efforts to increase the active product use in line with the strategy of increasing customer satisfaction, VakıfBank raised the volume of member merchants intermediated by the Bank in the commercial segment by 15%, the volume of tax and social security by 30.4%, DDS main company volume by 111%, DDS branch volume by 76% and Gümkart collections by 38%. The international trade transactions of commercial customers were carried out in a swift and secure manner, via the Bank’s upgraded IT infrastructure and well- experienced personnel. Under the loan agreement between VakıfBank and the European Bank for Reconstruction and Development (EBRD), designed to meet the financing needs of commercial customers for foreign trade transactions, the limit allocated by EBRD to the Bank was increased as a result of productive and effective collaborative efforts between the two institutions. As such, financing needs of commercial customers for foreign trade transactions were met under convenient terms. In 2017, VakıfBank rolled out the Strong Exporter/Importer Opportunity and Transfer (GİFT) packages, which provide special offers to foreign trade companies. Under these packages, import/export companies were provided advantages such as attractive fees, charges and commission rates in import and export transactions as well as transfers, discount tariffs in banking services, zero- interest loans, and special offers from VakıfBank’s subsidiaries. COMMERCIAL BANKING As of end-2017, VakıfBank increased cash loans and non- cash loans extended to customers in the commercial segment by 32.57% and 36.34% respectively.