Message from the General Manager
WITH DETERMINATION AND DEDICATION, WE CONTINUED TO CREATE VALUE FOR TÜRKİYE’S BALANCE SHEET AND SUPPORT OUR NATIONAL ECONOMY.
We increased our total assets to TL 5.4 trillion, maintaining our position as Türkiye’s largest publicly traded bank.
Dear Stakeholders,
The year 2025 highlighted a continued focus on fighting inflation in the global economy, even as heightened geopolitical risks and evolving trade policies significantly impacted market dynamics. The delayed effects of the rate-cutting cycles initiated in 2024 were distributed throughout the year while, particularly in the US, actions related to tariffs and protectionist policies, taken following the change in administration, were among the key factors weighing on global risk appetite.
The US Federal Reserve adopted a more flexible policy framework, supported by the rebalancing in the labor market and the gradual decline in inflation. As part of the easing steps, which accelerated particularly in the second half of the year, the policy rate was reduced by a total of 75 basis points starting from September, ending the year in the range of 3.50%–3.75%.
Meanwhile, the European Central Bank (ECB) continued its rate-cutting cycle, initiated in 2024, into the first half of 2025. However, due to persistent services inflation and a fragile outlook in terms of economic activity, the ECB kept policy rates unchanged in the second half of the year.
On the growth front, amid tight financial conditions and increasing trade restrictions, the US economy grew by 2.2%, while growth in the Eurozone remained limited at 1.5%. In contrast, despite structural challenges in the real estate sector and external trade pressures, the Chinese economy grew by 5% supported by fiscal stimulus, making it one of the largest contributors to global growth.
We continued to provide seamless solutions to the financial needs of the real sector and households.
Despite rising geopolitical risks, shifts in trade policies, and fluctuations in financial conditions around the globe, macroeconomic stability in the Turkish economy gained strength through consistently implemented policies. The CBRT maintained its tight monetary stance in the first half of the year; starting from the second half, the Central Bank initiated a controlled and gradual easing cycle, monitoring the progress achieved in the disinflation process. In this framework, the policy rate was reduced to 38% by year-end, while the effectiveness of the monetary transmission mechanism was supported by macroprudential measures. As a result of this policy mix, annual inflation eased in 2025, dropping by 13.49 percentage points compared to end-2024, and stood at 30.89%.
On the economic activity side, the growth composition became more balanced. The Turkish economy followed a stable and moderate growth path throughout 2025, recording an annual growth rate of 3.6%.
As VakıfBank, we resolutely continued to create value for Türkiye’s balance sheet throughout 2025 and to support our national economy, in line with our sustainable growth vision. We increased our total assets by 34% year-on-year to TL 5.4 trillion, maintaining our position as Türkiye’s largest publicly traded bank. Growing our performing loans—the cornerstone of our asset structure—by 46% to approximately TL 3 trillion, we continued to provide uninterrupted financial support to the real sector and households.
We maintained our strong position in international markets and secured a record USD 12.8 billion in fresh funding during this period.
In line with a selective lending policy focused on production, exports, and employment, we increased our commercial loans by 46% to TL 2.3 trillion. At the same time, upholding our mission to stand by all segments of society, we expanded our retail loans by 44% to TL 579 billion, maintaining our support to households.
During this period, the Bank introduced a new financing package tailored for environmentally friendly commercial vehicle purchases. Designed to accelerate the green transformation of the export sector, one of the key drivers of the Turkish economy, the package enhances businesses’ global competitiveness and promotes sustainable transportation. Not merely a financing product, this package is a strategic step aligned with Türkiye’s sustainable development vision.
Additionally, we launched the SME-Specific Green Transformation and Sustainability Support Loan to finance companies’ investments across a wide range of areas, from renewable energy and energy efficiency to waste management and the circular economy. By means of these environmentally friendly solutions, we also support the transformation of SMEs.
In line with our strategy of securing widely distributed and cost-effective funding, we increased our retail deposits by 28% to TL 1.5 trillion.
On the funding side, we increased our total deposits—our primary funding source—by 36% year-on-year to exceed TL 3.4 trillion. In line with our strategy of securing widely distributed and cost-effective funding, we raised our retail deposits by 28% to TL 1.5 trillion and our demand deposits by 69% to TL 1.1 trillion. While enabling our customers to manage their savings in the most effective way, we also aligned our products and service processes with the Turkish lira-focused policies of economic authorities.
Holding a strong position in international markets, we secured a record USD 12.8 billion in fresh funding during this period. We began 2025 with a USD 700 million DPR transaction, the longest maturity transaction in VakıfBank’s recent history, and successfully rolled over our USD 1 billion sustainability-linked securitization at a rate of 110%. Despite global uncertainties, this achievement stands as a strong indicator of international investor confidence and our leading role in sustainable finance. In the second half of the year, we raised our total DPR funding to USD 1.7 billion with a new transaction equivalent to USD 1 billion. These transactions, completed with maturities of up to 10 years, serve as global validation of our strong balance sheet, as does our program rating elevation to investment grade by Fitch. Accounting for approximately 40% of DPR issuances in Türkiye, we maintained our market leadership.
Furthermore, the EUR 1.5 billion, 10-year agreement we signed with the World Bank stood out as the largest single transaction ever executed with a single financial institution in Turkish banking history. With this funding, we aim to enhance our financial inclusiveness, particularly by supporting women and youth employment and the economic recovery of earthquake-affected regions. At the same time, we continue to diversify and strengthen our collaborations with multilateral development institutions. In this context, we secured USD 300 million in long-term funding through our first agreement with the Asian Infrastructure Investment Bank. This funding will support projects contributing to the reconstruction of housing and social infrastructure in earthquake-affected areas, as well as SMEs’ climate-friendly investments such as renewable energy, energy efficiency, and the circular economy.
As VakıfBank, we are firmly committed to supporting the principles of the United Nations Global Compact, the world’s largest sustainability initiative. During this period, we maintained our ‘A’ rating, the highest level, in the CDP Water Security Program, reflecting our consistent and sustainable performance. In addition, in the CDP Forest Program, to which we responded for the first time, we achieved the highest score of ‘A’, supported by our strong governance structure and comprehensive risk and opportunity management approach—further advancing our environmental performance in a multidimensional manner. We were also included in the CDP 2025 Global A List for both Water Security and Forest.
As VakıfBank, we continue to take an active role not only in the financial domain, but also in the preservation, promotion, and transmission of cultural heritage and the arts to future generations. From past to present, we have hosted hundreds of artists in our galleries in Ankara and Istanbul, assembling one of Türkiye’s most distinguished corporate art collections. In 2025, in line with our social responsibility approach in culture and the arts, we hosted a special exhibition featuring the works of master photographer Ara Güler, who has made unique contributions to Türkiye’s visual memory.
In 2025, as we left behind our 70-year legacy and stepped into a new decade, we achieved a net profit of TL 70 billion. Strengthened by this profitability, our equity increased by 47.1%, reaching TL 322.4 billion. In the period ahead, we will continue to create value without compromising our strategy of sustainable, efficient, profitable, and high-quality growth.
We have become an institution that not only excels in traditional banking, but also shapes the sector in areas such as digitalization, artificial intelligence, and sustainability.
Endeavoring to add value to every individual of the lands we call home, we have become an institution that not only excels in traditional banking, but also shapes the sector in areas such as digitalization, artificial intelligence, and sustainability. With the responsibility we undertake for Türkiye’s balance sheet, we continue to deepen our contribution to the country’s economic development and social welfare.
In the coming period, we will continue to leverage all the possibilities of technology through our people-centric banking approach, develop and implement projects with a strong sense of our environmental and social responsibilities, and strive to leave a more livable world for future generations.
On this occasion, I would like to extend my sincere thanks to our customers and shareholders who placed their trust in us in 2025, to all our employees, the true architects of our success who work with great dedication; to our Board of Directors for their visionary leadership; and to all our stakeholders for their valuable contributions.
Sincerely,
Abdi Serdar ÜSTÜNSALİH
General Manager