Evaluation of the Bank’s Financial Position, Profitability and Solvency

As of the end of 2024, our bank continued to serve its customers with its 963 branches and 18,209 employees.

Sustainable Growth

Our bank increased its assets by 44% compared to the end of the previous year and raised it to TL 4,021,486 million. In the distribution of assets, loans had the biggest share with 50%. Our performing loans increased by 34% in this period and reached TL 2,009,402 million. In this period, 80% of our performing loans consisted of commercial loans and 20% were retail loans. Our commercial loans went up by 32% and our retail loans increased by 43%. Our Bank’s market share reached 12.98% in commercial loans and 10.38% in retail loans. Thus, our total live loans market share was 12.36%.

The ratio of our Bank’s Non-Performing Loans (NPL) was 1.79% in 2024. Securities portfolio increased by 39% to TL 915.386 million, and its share in assets was 22.76%.

Deposit-Weighted Funding, Manageable Debt and Strong Equity Structure

In 2024, our main funding source was once again a deposit. In this period, our deposit increased by 29% and reached TL 2,537,788 million. The share of deposits in total liabilities was 63%. Within the funding structure, 74% of the deposit items, which have the most significant weight, constituted term deposits and 26% demand deposits. In this period, demand deposits increased by 56% while time deposits increased by 22%. With the support of the deposit growth, the loan/deposit ratio realized at 79,18%.

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 issued securities reached TL 213,701 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 11.5 billion in total in 2024 from abroad.

Our bank’s equities increased by 28% in 2024 compared to the end of the previous year, reaching TL 219,194 million.

Distribution of Liabilities (%)

Evaluation of Profitability

Our Bank’s net profit for the period was TL 40,375 million in 2024. In the same period, interest revenues reached TL 733,207 million, interest expenses reached TL 634,230 million, and net interest income reached TL 98,976 million. In this period, the ratio of interest income to cover interest expenses was 116%.

In this period, our Bank’s net fee and commission income increased by 81% compared to the end of the previous year and reached TL 46,474 million.

At the end of 2024, our Bank’s average return on equity was 20.67%, and average return on assets was 1.18%.

Distribution of Liabilities (%)

*Subordinated Loans Included.

Solvency

In 2024, VakıfBank maintained its solvency by keeping the share of interest-bearing assets in total assets at 83%.

Maintaining its growth in loans without compromising on risk control, our Bank’s capital adequacy ratio was 16.11% above the legal. The long-term evolution of the capital adequacy ratio is shown in the graph below.

In 2025, our country’s economy is expected to grow by 4%. VakıfBank shall continue its sustainable growth in 2025 as well, by increasing the number of customers and product range, and using potential growth opportunities at domestic and abroad.

Capital Adequacy Ratio