VKF_FRAE_2017

PART I: INTRODUCTION 90 VakıfBank Annual Report 2017 VakıfBank supports the Turkish economy with 13 subsidiaries and 10 affiliates in a number of industries. AFFILIATES AND SUBSIDIARIES VakıfBank supports the Turkish economy with 13 subsidiaries and 10 affiliates in a number of industries. Thirteen of VakıfBank’s affiliates and subsidiaries operate in the financial services sector (four in banking, two in insurance and seven in other financial lines of business) while 10 are non-financial subsidiaries (one in energy, two in tourism, one in manufacturing and six in other commercial companies). The value of VakıfBank’s subsidiary and affiliate portfolio on its balance sheet increased to TL 2.6 billion as of December 2017, up from TL 2.1 billion in 2016. »» FINANCIAL SERVICES GROUP VakıfBank International AG VakıfBank International AG was constituted in Austria in 1999 to grow VakıfBank’s international operations in line with its strategy to expand abroad. VakıfBank controls a 90% share in the Company’s capital of EUR 70 million. Kıbrıs Vakıflar Bankası Ltd. Established in the Turkish Republic of Northern Cyprus by the Cyprus Administration for Foundations, VakıfBank owns a 15% share in Kıbrıs Vakıflar Bankası Ltd., which runs banking activities with capital of TL 70 million. Türkiye Sınai Kalkınma Bankası A.Ş. Established in 1950, Türkiye Sınai Kalkınma Bankası A.Ş. provides long-term funds for medium and large-scale investment projects, engages in investment banking activities, and offers corporate finance services. VakıfBank held an 8.38% share in the Türkiye Sınai Kalkınma Bankası’s capital of TL 2.4 billion. Takasbank-İstanbul Takas ve Saklama Bankası A.Ş. İstanbul Takas ve Saklama Bankası A.Ş. (Takasbank) is engaged in clearing and custody services as well as investment banking services. VakıfBank owns a 4.37% share in the Bank’s share capital of TL 600 million. Güneş Sigorta A.Ş. Güneş Sigorta is a general (non-life) insurer originally established in 1957 under VakıfBank’s direction. VakıfBank owns a 48.02% share in the Company’s capital of TL 270 million. Vakıf Emeklilik ve Hayat A.Ş. VakıfBank holds a 53.90% share in the capital of the Company of TL 26.5 million, which was constituted to provide individual or group private pension and life insurance services. Vakıf Finansal Kiralama A.Ş. Vakıf Finansal Kiralama A.Ş. was founded in 1988 to provide a comprehensive range of leasing services. VakıfBank owns a 58.71% share in the Company’s capital of TL 109 million. Vakıf Menkul Kıymetler Yatırım Ortaklığı A.Ş. Vakıf Menkul Kıymet Yatırım Ortaklığı A.Ş. is an investment trust. It was constituted in 1991 as a publicly held company to manage the assets of small and individual investors in the Borsa Istanbul, facilitate the trading of marketable securities and maximize the returns of its portfolio by closely monitoring foreign exchange, stock and money markets. VakıfBank owns a 22.89% share in the Company’s capital of TL 20 million. Vakıf Gayrimenkul Yatırım Ortaklığı A.Ş. Vakıf Gayrimenkul Yatırım Ortaklığı A.Ş. was founded in 1996 under the leadership of VakıfBank as the first real estate investment trust in Turkey with an issued capital of TL 250,000. The Company was set up to establish and manage a portfolio of real estate properties and real estate backed capital markets instruments. VakıfBank owns a 38.70% share in the Company’s capital of TL 217.5 million. The value of VakıfBank’s subsidiary and affiliate portfolio on its balance sheet increased to TL 2.6 billion as of December 2017, up from TL 2.1 billion in 2016.