VKF_FRAE_2018_uyg11

12 Section I: Introduction In addition to providing core banking products and services, VakıfBank also conducts investment banking and capital markets operations. VakıfBank provides its customers with the widest possible range of financial products via advanced technologies. Historical Development of the Bank VakıfBank was established under a private legal jurisdiction, Law numbered 6219 dated January 11, 1954 to utilize foundations’ revenues in the most efficient manner, contribute to Turkey’s savings rate with a modern banking approach and channel the deposits collected toward the country’s economic development. VakıfBank commenced operations on April 13, 1954 with initial capital of TL 50 million. Since its founding, the Bank has been subject to special legal provisions and has contributed significantly to the growth and development of Turkey’s economy. Long-Standing Tradition and Banking Know-How Representing a well-established tradition with long-standing experience and know-how in the Turkish banking system, VakıfBank has succeeded in becoming one of the most profitable banks in the sector. It has also helped the Turkish economy to grow, develop and integrate with the global economy while it has achieved rapid and healthy growth, quickly caught up with large-scale banks, and strengthened its position in the industry. Today, the modern banking products and services offered by VakıfBank cover corporate, commercial, agriculture, local government and SME banking, as well as retail and private banking business lines. In addition to providing core banking products and services, VakıfBank also conducts investment banking and capital markets operations. The Bank also delivers a wide range of financial services including insurance, financial leasing and factoring through its financial subsidiaries via advanced technologies. Turkey’s Pioneer Bank Always a pioneer in international banking, VakıfBank remained the most active domestic bank in the international markets in 2018 by continuing its TL-denominated covered bond issues. During the year, the Bank also conducted the largest Eurobond issue of its history under its Global Medium-Term Note Programme, as well as syndicated loans, securitization loans and long-term and cost- effective issuances from diverse funding sources. As a result, the Bank remained the most active Turkish bank in the international markets. In 2017, VakıfBank secured USD 5.7 billion in foreign funds; in 2018, the Bank increased this figure to USD 5.8 billion despite challenging market conditions stemming from rising concerns about emerging markets. During the year, VakıfBank recorded total foreign financing of USD 12.5 billion, accounting for 20.1% of total liabilities. Accelerating its operations with the vision of “Being the Leading Bank of Strong Turkey,” VakıfBank continued to ease the interest rate pressure in the TL deposit market by securing long-term and cost-effective new non-deposit TL funding sources in 2018. To be included in calculation of additional core capital, The Bank materialized an Additional Tier-1 issuance worth TL 5 billion perpetual bond (with recall option at the end of the fifth year) in September 2018. VakıfBank also issued two seperate five-year bonds totaling TL 2 billion under its Covered Bond Programme. HISTORY AND OWNERSHIP STRUCTURE VakıfBank remained the most active Turkish bank in the international markets with the long-term and cost-effective loans it has secured from diverse sources. VakıfBank is on your side with its long-standing tradition and banking know-how...