VKF_FRAE_2017

PART I: INTRODUCTION 54 VakıfBank Annual Report 2017 VakıfBank increased its SME cash loans by 29.40% in 2017, remaining the strength by SME customers. REVIEW OF OPERATIONS IN 2017 VakıfBank, in line with its vision of becoming “Leading Bank of Strong Turkey”, continued to grow in the field of SME Banking in 2017 by expanding its product and service range, and launching alternative channels facilitating SME customers’ access to financial products. As customer needs rapidly diversify in this sector, VakıfBank has succeeded in analyzing SME needs correctly and formulating accurate solutions. »» 2017 PERFORMANCE On the basis of the provisions for the “Regulation on Definition, Classification and Qualifications of Small and Medium Size Enterprises,” VakıfBank continued supporting SME customers in 2017 by increasing its cash loans by 29.40% compared to the previous year. VakıfBank continued to develop innovative products to meet the specific needs of SME customers in 2017: » » In 2017, the government extended support to the SMEs and craftsmen by means of the banking sector. VakıfBank played an active role in delivering the government’s support to SMEs and craftsmen. The government provided support to the Credit Guarantee Fund (CGF), largely expanding its capacity to offer collaterals; in turn, CGF backing made it easier for banks to provide financing to SMEs. As a bank that always stands by SMEs and the real economy, VakıfBank allocated loans with CGF collaterals exceeding TL 20 billion. As such, VakıfBank became a leader in the allocation of CGF-backed loans. Many loan products with CGF collateral have been designed to meet the financial needs of farmers, craftsmen, women entrepreneurs, exporters and even non-SME businesses. » » VakıfBank designed loan products exclusively for KOSGEB-registered enterprises with active SME certifications as part of “KOSGEB 2017 Zero-Interest Working Capital Loan” and “2017 KOSGEB Emergency Support Loan in Manufacturing Industry and Organized Industrial Zones,” extended pursuant to a protocol between the Bank and KOSGEB. These loans came with interest support, reduced fees, and special discounts and exemptions in banking products and services. » » Within the framework of its sustainability policy, VakıfBank launched the product called Machinery Purchasing Loan at Attractive Interest Rates in order to finance machinery investments that will enhance the energy efficiency of manufacturing companies. » » VakıfBank continued to extend to SMEs the low-cost loans it obtained from the European Investment Bank, European Bank for Reconstruction and Development, World Bank and the French Development Agency. Thanks to the Women Entrepreneurs Support Package, which was created with the funds provided by the European Bank for Reconstruction and Development, more than 1,200 women entrepreneurs were offered enterprise, workplace and export loans. » » At the TurSEFF Sustainable Energy Excellence Awards Ceremony where the most successful renewable energy and energy efficiency projects funded during the second phase (2013-2016) of the Turkey Sustainable Energy Finance Facility were selected, VakıfBank was named the “Leading Bank in Energy Efficiency Financing.” In addition, the Bank provided financing for the renewable energy and energy efficiency investments of enterprises, under the scope of an additional facility amounting to USD 55 million. VakıfBank also became the first bank to extend loans within the scope of TurSEFF III program, designed to provide funding for the resource efficiency and renewable energy investments of commercial enterprises, municipalities and their subsidiaries. SME BANKING In 2017, VakıfBank played an active role in delivering to SMEs and craftsmen the government support from the CGF and KOSGEB.