As of the end of 2021, our bank continued to serve its customers with its 940 branches and 16,949 employees.

Sustainable Growth

Our bank increased its assets by 44% compared to the end of the previous year and raised it to TL 1,007,214 million. In the distribution of assets, loans had the biggest share with 57%. Our loans increased by 36% in this period and reached TL 573,700 million. In this period, 78% of our loans consisted of commercial loans and 22% were retail loans. Our commercial loans went up by 43% and our retail loans increased by 16%. When it comes to sub-breakdown of our retail loans, there was a 19% increase in mortgage loans and a 25% increase in vehicle loans. Our Bank’s market share reached 11% in commercial loans and 13% in retail loans. Thus, our total live loans market share was 11%.

The ratio of our Bank’s Non-Performing Loans (NPL) was 3.09% in 2021. Securities portfolio increased by 53% to TL 223,737 million, and its share in assets was 22%.

Deposit-Weighted Funding, Manageable Debt and Strong Equity Structure

In 2021, our main funding source was once again a deposit. In this period, our deposit increased by 43% and reached TL 590,943 million. The share of deposits in total liabilities was 59%. 75% of the deposits, which have the most significant weight in the funding structure, were term deposits while 25% were demand deposits. In this period, demand deposits increased by 81% while time deposits increased by 33%. With the support of the strong deposit growth, the Bank’s loan/deposit ratio realized at 97%.

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 securities issued securities reached TL 61.975 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 5.4 billion in 2021 from abroad.

Our bank’s equities increased by 12% in 2021 compared to one in the end of the previous year and reached the level of TL 51,953 million.

Evaluation of Profitability

Our Bank’s net profit for the period was TL 4,175 million in 2021. In the same period, interest revenues reached TL 72,201 million, interest expenses reached TL 52,657 million, and net interest income reached TL 19,543 million. In this period, the ratio of interest income to cover interest expenses was 137%.

In this period, our Bank’s net fee and commission income increased by 33% compared to the end of the previous year and reached TL 4,501 million.

At the end of 2021, our Bank’s average return on equity was 8.48%, and average return on assets was 0.49%.

Solvency

In 2021, VakıfBank maintained its solvency by keeping the share of interest-bearing assets in total assets at 88%.

Maintaining its growth in loans without compromising on risk control, our Bank’s capital adequacy ratio was 14.85% above the legal. 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 2022. VakıfBank will continue its sustainable growth in 2021, by increasing the number of customers and product range, by using potential growth opportunities at domestic and abroad