VKF_FRAE_2017

PART I: INTRODUCTION 68 VakıfBank Annual Report 2017 VakıfBank continued to offer customers gold trading opportunities, and to organize Gold Days in its branches across Turkey. REVIEW OF OPERATIONS IN 2017 interest rate to qualified domestic investors. This issuance tenders a good alternative to institutional investors seeking long-term TL-denominated investment opportunities, and raised long-term funds for the Bank. The issuance also had a positive effect on the statutory ratios since it qualifies as additional capital. In the following period, VakıfBank bonds will continue to be presented to corporate and retail investors will be offered as an alternative investment instrument. »» MUTUAL FUNDS As part of mutual fund participation share trading and active marketing activities, the Bank provides brokerage service for money market funds and the short term debt instruments fund founded by Vakıf Portföy (Vakıf Portfolio) through all of its branches and Investment Centers as well as Alternative Distribution Channels such as Internet Banking, Telephone Banking, ATMs and Mobile Banking. Under the management of portfolio management specialists due to strategies tailored to customer needs, Vakıf Portföy mutual funds reached a 4.40% market share and TL 2.1 billion in total assets under management (AUM) as of year-end 2017. At the beginning of the year, VakıfBank customers were already able to access all investment funds over the TEFAS Platform (Turkey Electronic Funds Trading Platform) by means of the branches and Internet Banking channel: In 2017, the Mobile Banking channel was also added to the platform, thus enabling customers to access these investment funds via all distribution channels. »» GOLD BANKING AND GOLD DAYS As one of the first banks that release gold banking, VakıfBank makes its 30 years of experience in this segment available to customers through its branches as well as alternative channels. VakıfBank continued to offer its customers gold trading opportunities, and to organize Gold Days in its branches across Turkey. As part of VakıfBank Gold Days initiated in early 2013, Cumhuriyet gold coins (in wholes, halves and quarters) as well as all-carat gold jewelry including bracelets, rings, and necklaces are assessed by gold experts and corresponding amounts are deposited into customers’ Golden Era Accounts in grams of gold. Gold Days were organized at 522 branches in 2017 and personally expert service was provided in many locations. VakıfBank will continue and expand the scope of this initiative in 2018. »» ACIVITIES OF THE CUSTODY AND FUND SERVICE DEPARTMENT VakıfBank conducts all the custody services as defined in the regulations of the Capital Markets Board. The Bank offers general custody and portfolio custody services to both corporate customers and collective investment undertakings. The Bank also provides fund service department activities for collective investment undertakings. »» FOREIGN TRADE AND CORRESPONDENT BANKS Having accelerated its activities with the vision of becoming the Leading Bank of Strong Turkey, VakıfBank remains the most active Turkish Bank in the international markets, with its bond issuances, syndicated loans, and providing long term and cost-effective funding sources. In 2017, a 10-year subordinated loan with a nominal value of TL 525 million (Tier II capital) was offered to qualified domestic investors.