As of the end of 2022, our bank continued to serve its customers with 949 branches and 16,961 employees.

Sustainable Growth

Our bank increased its assets by 67% compared to the end of the previous year and raised it to TL 1,681,061 million. In the distribution of assets, loans had the biggest share with 56%. Our performing loans increased by 63% in this period and reached TL 933,451 million. In this period, 81% of our performing loans consisted of commercial loans and 19% were retail loans. Our commercial loans went up by 68% and our retail loans increased by 43%. When it comes to sub-breakdown of our retail loans, there was a 12% increase in mortgage loans and a 466% increase in auto loans. Our Bank’s market share reached 12% in commercial loans and 12% in retail loans. Thus, our total performing loans market share was 12%.

The ratio of our Bank’s Non-Performing Loans (NPL) was 2.13% in 2022. Securities portfolio increased by 67% to TL 377,588 million, and its share in assets was 22%.

Deposit-Weighted Funding, Manageable Debt and Strong Equity Structure

In 2022, our main funding source was once again a deposit. In this period, our deposit increased by 91% and reached TL 1,127,702 million. The share of deposits in total liabilities was 67%. Within the funding structure, 77% of the deposit item, which has the most significant weight, constituted term and 23% demand deposit. In this period, demand deposits increased by 77% while time deposits increased by 95%. With the support of the strong deposit growth, the Bank’s loan/deposit ratio realized at 83%.

Our bank continued its effectiveness in international debt capital markets with its long-term and cost-effective funding sources provided by various instruments such as syndication loans, securitization loans and subordinated loans. Our issued securities reached TL 69,854 million. Securities issued contributed to diversification of our Bank’s funding sources and extension of the maturity structure. During this period, our Bank successfully renewed its syndication loans and provided a total of USD 3.3 billion in 2022 from abroad.

Our bank’s equities increased by 106% in 2022 compared to the end of the previous year and reached the level of TL 106,985 million.

Evaluation of Profitability

Our Bank’s net profit for the period was TL 24,017 million in 2022. In the same period, interest revenues reached TL 158,569 million, interest expenses reached TL 84,854 million, and net interest income reached TL 73,715 million. In this period, the ratio of interest income to cover interest expenses was 187%.

In this period, our Bank’s net fee and commission income increased by 140% compared to the end of the previous year and reached TL 10,793 million.

At the end of 2022, our Bank’s average return on equity was 30.22%, and average return on assets was 1.79%.

Solvency

In 2022, VakıfBank maintained its solvency by keeping the share of interest-earning assets in total assets at 85%.

Maintaining its growth in loans without compromising on risk control, our Bank’s capital adequacy ratio was 15.19% above the treshold. The long-term evolution of the capital adequacy ratio is shown in the graph below.

It is estimated that the economy of our country will grow by 5% in 2023. VakıfBank will continue its sustainable growth in 2023, by increasing the number of customers and product range, and by using potential growth opportunities at domestic and abroad.

(*) The dates refer to the last rating changes.