Dear Shareholders,

In 2021, the emergence of new Covid-19 variants as vaccination works were underway led to increased concerns and affected economic activity. Many countries have begun to put new restrictions into effect in order to protect themselves from the impacts of case increases. However, the mild course of the Omicron variant, in particular, resulted in the relaxation of the measures taken. As a result of these developments, the recovery in global markets has continued. On the other hand, there have been signals that fiscal stimulus and monetary expansion policies followed in order to reduce the damage caused by the pandemic on economies may be gradually coming to an end. Although it has not changed the interest rate, the US Central Bank (Fed) has indicated that it may raise interest rates in the coming periods and will gradually reduce its Asset Purchase Program. In addition, although it has not changed interest rates in line with expectations, the European Central Bank (the “ECB”) has also announced that it will end the Pandemic Emergency Purchase Program and the Asset Purchase Program as planned in the event that negative shocks related to the pandemic do not occur, although it has not changed interest rates in line with expectations. Under all these developments, the US economy grew by 5.7%, the Eurozone by 5.2%, and the Chinese economy by 8.1% in 2021.

The Turkish economy was also affected by the developments in global markets during this period. Fluctuations, especially in the exchange rate and inflation towards the end of the year, were among the most important developments of this year. Despite the extreme volatility in domestic and international market conditions, our country’s economy grew by 11% in 2021 thanks to the actions taken under the leadership of the economy management.

The Turkish banking sector, on the other hand, maintained its strong capital structure during this period. The total asset size of the sector increased by 50.9% in 2021 reaching TL 9.213 billion. The support provided to the Turkish economy through cash and non-cash loans amounted to TL 6.670 billion. In this period, the equity of the sector increased by 18.6% and reached TL 711 billion. The capital adequacy ratio of the sector, on the other hand, reached 18.34% in 2021.

In 2021, VakıfBank maintained its uninterrupted support to the country’s economy. Our bank increased its assets by 44.1% compared to the same period of the previous year, to TL 1,007 billion. During this period, loans again made the most crucial contribution to asset growth. Our live loans increased by 35.9% and reached TL 574 billion. Commercial loans increased by 42.7% to TL 449 billion, and retail loans increased by 16.2% to TL 125 billion.

Increasing its total deposits by 42.7% to TL 591 billion, our Bank raised its demand deposits by 81.1% and time deposits by 33.4%. In addition to deposits, with new resources amounting to USD 5.4 billion sourced from international markets, the funding structure was diversified.

Increasing its shareholders’ equity by 11.8% to approximately TL 52 billion in 2021, our Bank’s net profit for the period reached TL 4 billion 175 million. During this period, our capital adequacy ratio was 14.85%.

We thank our customers, employees, and shareholders for their contribution to the results we achieved in 2021.

Yours sincerely,

TÜRKİYE VAKIFLAR BANKASI T.A.O.

BOARD OF DIRECTORS