Esteemed Shareholders,

In 2024, geopolitical tensions, high inflation and the effects of the US Presidential election that have started in previous years continued to shape global markets. In the first half of the year, central banks of developed countries implemented tight monetary policies to reduce inflation. In the second half of the year, they switched to a loose monetary policy to prevent a potential stagnation in growth. The US Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of England (BoE) were among the central banks that consecutively reduced interest rates. These developments, in turn, supported the continued buoyancy in business activity and the growth of the global economy. Ultimately, in 2024, the US economy grew by 2.8%, the UK economy by 0.1%, and the Eurozone economy by 0.7%.

In 2024, the Turkish economy continued to grow despite geopolitical risks and uncertainties in the global economy. Meanwhile, the measures implemented to combat inflation have demonstrated their effects. In line with the downward trend in inflation, the Central Bank of the Republic of Türkiye (CBRT) started to cut interest rates in December.

As always, the Turkish banking sector continued to contribute 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. The support provided to Türkiye’s economy through cash and non-cash loans amounted to TL 22.3 trillion. During this period, the sector’s shareholders’ equity rose by 35%, reaching TL 2.9 trillion. The capital adequacy ratio of the sector, on the other hand, reached 19.69% in 2024.

VakıfBank also continued its uninterrupted support to Türkiye’s balance sheet. Our Bank increased its assets by 44% to over TL 4.0 trillion. During this period, loans again made the most crucial contribution to asset growth. Our performing loans increased by 34% to more than TL 2.0 trillion. Commercial loans increased by 32% to TL 1.6 trillion and retail loans by 43% to TL 403 billion.

Increasing its total deposits by 29% to TL 2.5 trillion, our Bank increased its savings deposits and demand deposits by 58% and 56% to TL 1.2 trillion and TL 669 billion, respectively. In addition to deposits, with new funds amounting to USD 11.5 billion sourced from international markets, it has diversified its funding structure.

In 2024, our Bank increased its shareholders’ equity by 28% to TL 219.2 billion, with a net profit of TL 40 billion 375 million and a capital adequacy ratio of 16.11%.

We would like to extend our gratitude to all our stakeholders, especially our customers, employees, and shareholders, who contributed to the results we achieved in 2024.

Yours sincerely,

TÜRKİYE VAKIFLAR BANKASI T.A.O.

BOARD OF DIRECTORS