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DEAR SHAREHOLDERS,
The problems that resulted from the global financial crisis
in 2008 continue to have a considerable impact on the
economies of developed countries. Ongoing expansionary
monetary policies by the ECB and the Bank of Japan (BOJ)
in the face of deflation and recession risks, the Fed’s
decision to taper off asset purchases, and the precipitous
drop in oil prices that has negative impacts particularly
on major oil exporting countries such as Russia are the
main highlights in a brief synopsis of the global economic
outlook in 2014.
Despite these developments, the reliable and stable
environment established in Turkey over the past
decade allowed it to escape largely unscathed from the
macroeconomic challenges created by the 2008 global
financial crisis. Problems such as unemployment and
recession, which became globally pervasive after 2008,
did not take root in Turkey. In contrast with the lackluster
economic performance in the developed markets the,
Turkish economy grew by 2.8% in the first nine months
of the year as a result of export activities. I believe that,
with the support of domestic demand and lower costs
resulting from falling oil prices, the Turkish economy will
grow by around 4% in 2015 even if the Federal Reserve
starts hiking interest rates, which is the most likely
scenario according to many experts. I also believe that the
improvements in the foreign trade deficit and the current
account deficit will be sustained by increasing exports
over the course of 2015.
On the strength of its proud history, VakıfBank continued
to support Turkey’s growth and development. The Bank
increased its total assets by 16.77% to TL 158.2 billion
in 2014. Growth in loans played an important role
in this growth. The Bank’s total loan portfolio, which
amounted to TL 86.5 billion in 2013, climbed to TL 104.3
billion in 2014, representing an increase of 20.63%. In
summary, we channeled TL 104.3 billion, TL 71.5 billion in
commercial loans and TL 32.8 billion in retail loans, to the
Turkish economy.
Having met the financial needs of our commercial
customers for projects and investments, the Bank provided
financing support to some of the largest projects in the
history of the Republic, such as the Third Airport and
the Third Bridge in Istanbul as well as the Istanbul-Izmir
Highway. With funds obtained from the EIB and the World
Bank, we supported the real sector through investments
and working capital and generated various solutions to
meet the needs of our commercial customers. As part
of an agreement signed with the European Investment
Bank (EIB), we also contributed to local development
by providing funds for the investment expenditures of
municipalities and their affiliate enterprises. As a result,
the Bank recorded a 35% increase in the volume of
project loans provided to our commercial customers.
As a compassionate bank, we are proud to be able to
provide easier access to financial products for customers
that qualify as SMEs through the expansion of the range of
our products and services in the SME Banking segment in
2014. In a sector in which customer demands are rapidly
diversifying; we have developed tailored solutions after
carefully analyzing the needs of SMEs. In line with this
approach, in 2014 we received the first tranche allocation
of US$ 15 million as part of the US$ 67 million SME Energy
Efficiency Project that was established in partnership with
the World Bank. We are also securing low-cost facilities
from international organizations for the financing of
energy projects.
Our awareness of the importance of sustainability drives
our activities in this area, as we aspire to contribute to
preventing greenhouse gas emissions, lowering energy
costs, and reducing fossil fuel consumption by SMEs.
VakıfBank became one of the leading banks in sustainable
energy funding also through the provision of the TurSEFF-
II loan in 2014, an instrument funded by the European
Bank for Reconstruction and Development (ERBD) and
supported by a co-financing mechanism provided by the
EIB.
32.8
TL BILLION
Our retail loans
increased 7.75%, to TL
32.8 billion in 2014.
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VAKIFBANK
ANNUAL REPORT 2014