Dear Stakeholders,

We concluded a year influenced by the US election cycle and Trump’s subsequent rhetoric on the market. Despite various challenges, the global economy continued to expand. According to the World Bank’s January 2025 report, global economic growth is projected to reach 2.7% for both 2024 and 2025. The US economy demonstrated strong growth of 2.8% in 2024, while the Eurozone experienced more subdued growth at 0.7%. China’s economy grew by 5.4% in 2024, meeting expectations.

In 2024, global inflation stabilized, declining from the elevated levels of 2022 and 2023. However, inflation remained a significant issue for some countries due to regional differences and geopolitical risks; consequently, the decisions of leading central banks were closely monitored in global markets throughout the year. In December, aligning with expectations, the Federal Reserve cut its policy rate by 25 basis points, bringing the range to 4.25%-4.50%. This marked a total interest rate reduction of 100 basis points for the Fed in 2024. Meanwhile, the European Central Bank (ECB), the first central bank in a developed country to initiate rate cuts, reduced interest rates four times, ending the year at 3.15%.

Türkiye’s economy grew by 5.4% in the first quarter of the year, marking 15 consecutive quarters of growth. Our economy continued to expand in the following three quarters, ending 2024 with a growth rate of 3.2%. To combat inflation, the Central Bank of the Republic of Türkiye (CBRT) raised the policy rate to 50% in March 2024 and maintained that level for an extended period. However, in response to an improved inflation outlook, the CBRT reduced the policy rate for the first time in 2024 by 250 basis points, bringing it down to 47.5% in December 2024. Additionally, the CBRT continued to simplify the macroprudential framework.

The Turkish banking sector maintained its contributions to financial stability and the sustainable growth of the national economy in this period as well. The total asset size of the sector grew by 39% in 2024, reaching TL 32.7 trillion. While the annual growth rate of loans declined due to tightened monetary policy, the support provided by the Turkish banking sector to the economy—through both cash and non-cash loans—amounted to TL 22.3 trillion. Deposits remained the primary funding source for the sector. Additionally, the implementation of the economic program and improved access to foreign borrowing markets led to a sizeable increase in non-deposit sources. During this period, the sector’s shareholders’ equity rose by 35%, reaching TL 2.9 trillion.

In 2024, VakıfBank maintained its consistent support for Türkiye’s balance sheet. The Bank’s assets grew by 44%, exceeding TL 4.0 trillion. During the same year, shareholders’ equity rose by 28% to approximately TL 219.2 billion. The net profit for the period reached TL 40 billion 375 million, and the capital adequacy ratio stood at 16.11%.

As VakıfBank, we remain committed to supporting the real economy and households in the coming period with unwavering strength. As we have throughout the past 70 years, we will continue to contribute to Türkiye’s sustainable and robust growth by fostering economic and social development. Hereby, I would like to express my gratitude to our customers, shareholders and investors who have trusted us, to our employees who have made great efforts in our success, and to all our stakeholders.

Sincerely,

Mustafa SAYDAM

Chairman of the Board