Esteemed Shareholders,

2025 was a year in which geopolitical risks and policy-related uncertainties persisted, yet overall macroeconomic stability was largely preserved. Policy uncertainties and protectionist trends limited growth in the US. The US economy grew by 2.2% in 2025, while inflation, despite declining during the year, ended the year at 2.7% due to the impact of tariffs. The US Federal Reserve began 2025 with a policy rate of 4.5% and lowered it to 3.75% by year-end. The European Central Bank also continued its interest rate cuts in the first half of the year. In the last four meetings of the year, it kept interest rates constant. The Eurozone economy grew by 1.5% in 2025, driven by the gradual easing of financial conditions and publicly supported investments.

The Turkish economy, despite global fluctuations, exhibited a balanced growth outlook thanks to the rational policy mix implemented, recording a growth of 3.6% in 2025. Consumer inflation fell to 30.89% in 2025. This decline in inflation indicated that the disinflation process was progressing gradually and in a controlled manner. The Central Bank of the Republic of Türkiye maintained its tight monetary policy stance in the first half of the year. In the second half, as disinflation progressed, the policy stance shifted toward gradual easing, and the policy rate was lowered to 38% in December. The decline in the risk premium, the strengthening of reserves, and the upward revision of growth forecasts by international organizations showed that confidence and predictability in the Turkish economy had increased.

The Turkish banking sector continued to contribute to financial stability and the sustainable growth of the country’s economy during this period, as always. The sector’s total asset size increased by 44% in 2025, reaching TL 47 trillion. The support provided to the Turkish economy through cash and non-cash loans amounted to TL 32.4 trillion. During this period, the sector’s equity increased by 43%, rising to TL 4.2 trillion. The sector’s capital adequacy ratio was 19.69% in 2025.

VakıfBank also continued its uninterrupted support for Türkiye’s balance sheet. Our Bank increased its assets by 34%, exceeding TL 5.3 trillion. During this period, loans once again made the most significant contribution to asset growth. Our performing loans increased by 46%, surpassing TL 2.9 trillion. Commercial loans grew by 46% to TL 2.3 trillion, while retail loans increased by 44% to TL 579 billion.

Our Bank, which increased its total deposits by 36% to TL 3.4 trillion, raised its demand deposits by 69% and savings deposits by 28%, reaching TL 1.1 trillion and TL 1.5 trillion, respectively. In addition to deposits, it diversified its funding structure with new resources of USD 12.8 billion obtained from international markets.

In 2025, our Bank increased its equity by 47% to TL 322.3 billion, with a net profit for the period of TL 70.05 billion and a capital adequacy ratio of 16.71%.

We would like to thank all our stakeholders who contributed to the results we achieved in 2025, especially our customers, employees, and shareholders.

Yours sincerely,

TÜRKİYE VAKIFLAR BANKASI T.A.O.

BOARD OF DIRECTORS