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net ProfIt
(TL MILLION)
1,586
1,460
2013
2012
Profitability
In 2013, net period profit of VakıfBank, increasing by 8.59% reached TL 1,586 million.
Net fees and commissions income which increased by 53.34% and interest expenses which decreased by 5.16% in 2013 compared to the
previous year’s same period had impacts on the net period profit increase. In the same period, net interest income increased by 17.26% and
provision for losses on loans and other receivables increased by 32.28%.
In this period, while interest income increased by 5.30%, interest expenses decreased by 5.16%. Consequently, the ratio of interest income
covering interest expenses which was 187.43% in 2012, increased to 208.09% in 2013. In the same period, other operating income increased
by 13.39% and other operating expenses increased by 16.31%.
At 2013 yearend, VakıfBank’s return on average equity was 12.92% and return on average assets was 1.32%.
Power for Debt Payment
In 2013, VakıfBank, by realizing the portion of interest earning assets in the total assets at 82.30%, maintained its strong liquidity structure and
debt payment ability.
VakıfBank’s capital adequacy ratio of 13.70% was above the legal threshold and target.
Vakıfbank’s strong financial structure was confirmed by the International Rating Institutions’ assessments made in 2013.
In the assessments made by Capital Intelligence in March 2013, VakıfBank’s long term foreign currency rating was raised from “BB” to “BB+”;
By Standard & Poor’s * Foreign Currency Credit Rating was raised from “BB/Stable/B” to “BB+/Stable/B” and National Long Term Rating was
raised from “trAA” to “trAA+”;
In May 2013, Moody’s raised Vakıfbank’s Long Term Foreign Currency Deposit rating from “Ba2” to “Baa3” and Short Term Foreign Currency
Deposit rating from “NP” to “P–3”.
VakıfBank’s strong correspondent network is built on a foundation of ongoing mutual trust and a solid reputation in international markets. The
Bank maintains a leading position in the sector by adjusting to changing global market conditions and increasing the quality of service provided
to customers while offering long-term funding solutions to meet their financing needs. VakıfBank plays an important role in Turkey’s foreign
trade and in international markets.
In this direction, in order to be used in the financing of the foreign trade, with the participation of 38 banks from 19 countries (Bank of America
Merrill Lynch participated as “coordinator” and Sumitomo Mitsui Banking Corporation (Brussels Branch) participated as an “agent”) a one-year
syndicated loan agreement with the amount of USD 251.5 million and EUR 555.2 million was signed on the 11th of April 2013.
On the other hand, in the second half of 2013, with the participation of 27 banks, Vakıfbank secured one-year syndicated loan with a total
amount of USD 802 million, in two tranches: USD 166 million and EUR 471 million.
Total syndicated loans secured in 2013 reached an amount equivalent to USD 1.78 billion.
VakıfBank; with the aim of diversifying the sources of funds, extending the maturity structure and making cost control, continued to issue
bonds and treasury bills in 2013 and with this purpose, pioneering the sector, installed the Global Medium Term Notes (GMTN) program.
Within the scope of this Program, VakıfBank, issued bonds abroad and performed similar transactions – in different unit of currencies – with a
total amount of USD 1,862 million.
Seeing customers as the most important source of funds, VakıfBank plans to continue growing by offering products and services that best meet
their needs in the coming years.
* In February 2014, Standard & Poor’s reduced the credit rating from “Stable” to “Negative.”
VAKIFBANK ANNUAL REPORT 2013
303