VKF_FRAE_2018_uyg11

Section I: Introduction 06 Agenda of the 65 th Ordinary General Assembly Meeting 07 Dividend Policy 08 Compliance Opinion on the Annual Report 09 Declaration of Responsibility 10 VakıfBank in Brief 11 VakıfBank’s Cornerstones 12 History and Ownership Structure 13 Amendments to the Articles of Incorporation 16 Key Financial Indicators 18 Key Ratios 22 Message from the Deputy Chairman 24 Message from the General Manager 28 The World and Turkey in 2018 36 2018 at a Glance 40 Review of Operations in 2018 90 Corporate Social Responsibility 92 Affiliates and Subsidiaries Section II: Management and Corporate Governance Principles 94 Summary Report of the Board of Directors 95 Board of Directors 98 Board of Statutory Auditors 99 Executive Management 104 Internal Control Systems Executives 105 Committees 106 Human Resources Practices 110 Outsourced Support Services 110 Transactions with the Bank’s Risk Group 111 Corporate Governance Principles Compliance Statement Part III: Financial Highlights and Assessment of Risk Management 112 Statutory Auditor’s Report 113 Assessment of the Internal Systems and 2018 Operations 116 Risk Management Policies Applied by Risk Type 119 Unconsolidated Financial Statements, Explanations and Footnotes and Independent Auditors’ Report as of December 31, 2018 311 Consolidated Financial Statements, Explanations and Footnotes, Independent Auditors’ Report as of December 31, 2018 514 Evaluation of the Bank’s Financial Position, Profitability and Solvency 516 International Credit Ratings 517 Five-Year Summary Financial Information COMMERCIAL BANKING Continuing to deliver the best and most beneficial solutions to its commercial customers, VakıfBank’s commercial cash loan portfolio grew 26% while non-cash loans increased 41% in 2018. 26% Commercial Cash Loans Growth Rate DIGITAL BANKING VakıfBank is adapting rapidly to the digital world: 93% of the Bank’s transactions are realized on non-branch channels. 93% Percentage of Transactions on Non-Branch Channels RETAIL BANKING VakıfBank serves about 15 million customers with tailor-made solutions to meet customer demands. 15 Million Number of Retail Customers MOBILE BANKING Thanks to its upgraded mobile application, VakıfBank expanded its mobile customer base by 53%. 53% Increase in the number of Mobile Customers PAYMENT SYSTEMS VakıfBank’s credit card turnover was up by 27% in 2018. 27% Credit Card Turnover Growth