VKF_FRAE_2017

93 VakıfBank Annual Report 2017 billion. In this period, the subordinated loans issued by the banking sector improved the sector’s regulatory capital. In 2017, shareholders’ equity reached TL 359 billion and capital adequacy ratio stood at 16.87%. On the other hand, the banking sector’s profitability continued its strong growth and the net profit for the period reached to TL 49.1 billion in December 2017 increasing by 30.78% year-on-year. VakıfBank also had a successful performance in 2017, as the Bank’s total assets reached TL 270.6 billion with a 27.30% increase compared to the same period of the previous year. During this period, VakıfBank’s loans reached to TL 182.9 billion with an increase of 24.77%, continuing to the main driver of the Bank’s growth. A glance at the breakdown of loans, real sector was supported by a 27.84% increase in commercial loans reaching TL 135 billion. During this period, retail loans increased 16.85% to TL 48 billion, as the Bank maintained its strong presence in the market. VakıfBank’s total deposits grew 25.39% to TL 155.3 billion. Demand deposits were up by 23.26% while term deposits increased 25.91%. VakıfBank diversified its non- deposit funding sources, and raised USD 5.2 billion with cost effective and long-term maturity terms in the year 2017. VakıfBank’s shareholders’ equity rose to TL 23.3 billion in 2017 while net income grew 37.75% to TL 3,723 million. The Bank’s return on average equity (ROAE) and return on average assets (ROAA) during this period were 17.52% and 1.54%, respectively. We would like to thank our customers, employees, and shareholders for their contributions to our results in 2017. Respectfully, TÜRKİYE VAKIFLAR BANKASI T.A.O. BOARD OF DIRECTORS