67 / 324
67
VAKIFBANK
ANNUAL REPORT 2014
Total assets of the Turkish banking sector rose to TL 1,994
billion in December 2014, a 15.1% YoY increase. The share
of deposits, which fund majority of the industry’s assets,
in total liabilities continued to decline in 2014, folling to
52.8%. The importance of non-deposit sources of funding
increased in terms of reducing the cost of funds and
extending the average maturity of liabilities. The deposits-
to-loans ratio stood at 1.18% as of December 2014.
As one of the key players in the sector, VakıfBank’s
commercial loans grew 27.65%, to TL 71.5 billion, while
retail loans increased 7.75%, to TL 32.8 billion. As a result,
VakıfBank maintained its strong position in the market.
Continuing to support SMEs during this period, VakıfBank’s
SME loans increased 25.42%, to TL 27.7 billion, while
total loans grew by 20.63%, to TL 104.3 million. Total
assets, 65.95% of which are comprised of loans, increased
16.77% ,to TL 158.2 million.
Deposits, the Bank’s most important source of funding,
grew 12.54%, to TL 91.8 billion, thanks to our strategy of
broadening our deposit base and expanding the branch
network. VakıfBank also continued to find low-cost
overseas funding sources; in October 2014, the Bank
signed a one-year syndicated loan agreement consisting
of two tranches of US$ 168.5 million and
€
528.75 million
with the participation of 26 banks from 16 countries. In
the same period, the Bank’s shareholders’ equity totaled
TL 14.8 billion while the Bank announced net profit of TL
1,753 million, a 10.58% YoY increase. The Bank’s average
return on equity (ROE) and return on assets (ROA) stand at
12.80% and 1.19%, respectively.
Undoubtedly, one of the most important developments
of the year for the Bank was its inclusion in the BIST
Sustainability Index that was launched by Borsa Istanbul
in 2014. This index is an important tool for investors,
revealing the financial performance of the companies
along with their performance on the environment, social
responsibility, and corporate governance, allowing them
to easily identify and choose companies worth investing in.
In line with the reflection of the foundation heritage in its
roots and its corporate motto of “Compassionate Bank”,
VakıfBank continued to carry out sponsorship programs
and social responsibility projects in a variety of areas,
from education and sports to cultural publications and
international events in 2014.
We would like to thank our loyal customers, our
employees who have contributed to our success with their
diligent efforts, and our valued shareholders who have
always supported us.
Respectfully,
TÜRKİYE VAKIFLAR BANKASI T.A.O.
BOARD OF DIRECTORS