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27
VAKIFBANK ANNUAL REPORT 2013
Annual growth rate of net profit is
slowing
In 2013, the annual growth rate of net interest
income slowed in the annual rate of net profit.
Having increased 18.5% in 2012, the net profit
of the sector grew 5.14% in 2013, according
to the 12-month cumulative figure. As a
result, the sector posted total profit of TL 24.7
billion in 2013. Due to a decline in net interest
income, the net interest margin, which was
4.51% in December of 2012, stood at 3.96%
one year later.
Capital adequacy ratio
The changing risk weightings of banks after
the enactment of Basel II rules in July 2012
resulted in a reduction of capital adequacy
ratios. The sector’s capital adequacy ratio,
which was moving downward in 2013,
stood at 15.29% by the end of 2013, down
from 17.86% at 2012 year-end. The banking
sector’s return on assets and return on equity
that was 1.7% and 12.9% at the end of 2012,
respectively, stood at 1.43% and 12.76% at
the end of 2013.
In 2014, the sector’s distribution of commercial
and retail loans is expected to change as
a result of the measures taken by public
authorities. The share of retail loans to total
loans is expected to fall while the share of
commercial loans is expected to rise during
the year. However, loans will continue to
be an important funding source for the
sector in 2014. While they maintained the
strong structure of the sector along with the
investment-grade rating of Turkey that will
facilitate the continuation of the supply of
funds from abroad, the reduction in the Fed’s
asset purchases in 2014 may have a limiting
effect on supply.
Share of Deposits and Non-deposit Sources in Liabilities
Share of Deposits in Liabilities (%)
Share of non-Deposits in Liabilities (%) (Right Index)
Source: BRSA
64
63
62
61
60
59
07/06
12/07
12/08
12/09
12/11
06/11
12/12
06/07
06/08
06/09
12/10
06/10
06/12
12/13
06/13
58
57
56
55
54
20
22
24
26
28
30
32
34
Net profit and net interest income
Source: BRSA
Net Profit (Annual % Change)
Net Interest Income (Annual % Change)
10
40
50
60
30
20
0
07/08
02/08
05/09
03/10
11/11
06/11
01/11
09/12
07/13
12/08
10/09
08/10
04/11
02/12
12/13
-20
-10
Capital Adequacy Ratio
(%)
Source: BRSA
Net Profit (Annual % Change)
Net Interest Income (Annual % Change)
25
23
21
19
05/06 11/06 05/07 11/07 05/08 11/08 05/09 11/09 05/10 11/10 05/11 11/11 05/12 11/12 05/13 11/13
17
15