As of the end of 2023, our bank continued to serve its customers with its 944 branches and 17,263 employees.

Sustainable Growth

Our bank increased its assets by 66% compared to the end of the previous year and raised it to TL 2,796,634 million. In the distribution of assets, loans had the biggest share with 54%. Our performing loans increased by 61% in this period and reached TL 1,499,288 million. In this period, 81% of our performing loans consisted of commercial loans and 19% were retail loans. Our commercial loans went up by 61% and our retail loans increased by 58%. When it comes to sub-breakdown of our retail loans, there was a 6% increase in housing loans and a 132% increase in vehicle loans. Our Bank’s market share reached 13% in commercial loans and 10% in retail loans. Thus, our total live loans market share was 12.6%.

The ratio of our Bank’s Non-Performing Loans (NPL) was 1.30% in 2023. Securities portfolio increased by 77% to TL 659.771 million, and its share in assets was 24%.

Deposit-Weighted Funding, Manageable Debt and Strong Equity Structure

In 2023, our main funding source was once again a deposit. In this period, our deposit increased by 74% and reached TL 1,961,761 million. The share of deposits in total liabilities was 70%. Within the funding structure, 78% of the deposit item, which has the most significant weight, constituted term and 22% demand deposits. In this period, demand deposits increased by 67% while time deposits increased by 76%. With the support of the strong deposit growth, the loan/deposit ratio realized at 76%.

Our bank continued its effectiveness in international debt capital markets with its long-term and cost-effective funding sources provided by various instruments such as syndication loans, securitization loans and subordinated loans. Our securities issued securities reached TL 118,329 million. Securities issued contributed to diversification of our Bank’s funding sources and extension of the maturity structure. During this period, our Bank successfully renewed its syndication loans and provided USD 6.3 billion in total in 2023 from abroad.

Our bank’s equities increased by 60% in 2023 compared to one in the end of the previous year and reached the level of TL 171,428 million.

Distribution of Assets (%)

Evaluation of Profitability

Our Bank’s net profit for the period was TL 25,046 million in 2023. In the same period, interest revenues reached TL 312,916 million, interest expenses reached TL 260,961 million, and net interest income reached TL 51,955 million. In this period, the ratio of interest income to cover interest expenses was 120%.

In this period, our Bank’s net fee and commission income increased by 139% compared to the end of the previous year and reached TL 25,746 million.

At the end of 2023, our Bank’s average return on equity was 18%, and average return on assets was 1.12%.

Distribution of Liabilities (%)

Solvency

In 2023, VakıfBank maintained its solvency by keeping the share of interest-bearing assets in total assets at 87%.

Maintaining its growth in loans without compromising on risk control, our Bank’s capital adequacy ratio was 15.09% above the legal. The long-term evolution of the capital adequacy ratio is shown in the graph below.

In 2024, our country’s economy is expected to grow by 4%. VakıfBank shall continue its sustainable growth in 2024 as well, by increasing the number of customers and product range, and using potential growth opportunities at domestic and abroad.

Capital Adequacy Ratio

(*) The dates refer to the last rating changes.