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VAKIFBANK ANNUAL REPORT
2011
Evaluation of Financial Position,
Profitability and Solvency
Notes on Assets
In 2011, VakıfBank attained the growth rate 20.6%, increased its assets to TL 89.2 billion and maintained the
robust asset composition keeping the interest earning asset/total asset ratio at 88.5%. In 2011, 66.1% of total
assets consisted of assets denominated in Turkish Lira while the remaining 33.9% of assets denominated in foreign
exchange.
Loans increased by 27.6% and reached TL 57.2 billion, thus made the most remarkable contribution to the growth in
bank assets. Retail loans, primarily the housing and consumer loans, displayed an increase of 41.7%, well-above the
overall banking sector, while the commercial loans increased by 20.5%, thus the share of loans, except the non-
performing loans, in assets has been realized as 64.1%
In 2011, VakıfBank continued to provide financing support to its customers using funds obtained directly or acting as
broker under the protocols concluded with other financial institutions and corporations along with its own sources.
Main components of the loan policy are defined as to contribute to both production and employment increases
by providing funds to the real sector, particularly to SMEs, without compromising the asset quality, and to support
national economy for international market access through granting export loans and offering foreign exchange
services.
Apart from the 27.6% increase on loans realized in 2011, NPL ratio has declined to 3.6% from 4.8% in 2010, owing to
the improvement in asset quality resulting from the collections of non-performing loans.
VakıfBank’s marketable securities portfolio increased by 5.7% over 2010 and reached TL 19.1 billion, while the share
of the marketable securities portfolio in the balance sheet fell down to 21.4% from 24.2%.
Ratio of Bank’s affiliates and subsidiaries to assets fell down to 1.0% from 1.2% in 2010 while the share of fixed
assets reduced to 1.2% from 1.5%.
Asset Composition (%)
2007
Cash Reserves
Loans
Marketable Securities
Others
14.04
25.75
55.34
4.87
2008
15.07
22.03
58.44
4.46
2009
14.18
28.52
53.36
3.94
2010
10.84
24.43
60.65
4.08
2011
10.60
21.43
64.26
3.71