Dear Stakeholders,

We are deeply saddened by the earthquake disaster that hit our country. We wish God’s mercy on those who lost their lives in the earthquake, extend our condolences to their families and relatives, and wish the injured a quick recovery. We firmly believe that we will overcome these difficult days together as we always did in the past. As VakıfBank, we have been working with relevant institutions and organizations since the first day of the disaster to provide all kinds of support and coordination. We will continue to stand by our country in the long-term process of healing and recovering damage of this devastating event.

Negative impacts of the war between Russia and Ukraine were felt in economies that had just started to recover after the pandemic in 2022. Supply chain disruptions, combined with sharp increases in energy and commodity prices, caused an inflationary trend in the global economy. Central banks of many developed and developing economies tightened their monetary policies during this period. While the impact of concerns was being felt across the globe all year long, limited supply and the uncertainties that lingered hit developed economies the hardest.

As a result of these developments, the US economy saw its highest levels of inflation in 40 years in the aftermath of changing energy costs. Meanwhile, the country’s economy grew by 2.1%, according to preliminary data. The Eurozone was hit hardest by the war. Expectations of a recession in the Eurozone mounted due to its proximity to the war zone and the region’s reliance on foreign energy sources. The zone grew by 3.5% in 2022, as per preliminary data.

Türkiye’s economy, meanwhile, maintained its solid performance despite supply shocks and growing uncertainties faced due to the war. The tendency for a slowdown in growth, with the impact of weakening foreign demand, was counterbalanced by relatively strong domestic demand. Türkiye’s economy continued to grow throughout the year and attained a 5.6% growth in 2022.

The banking sector, which contributed the most to the growth of the Turkish economy, left behind another year of achievements. As it quickly adapted to regulatory changes and continued its work, the banking sector’s asset size grew by 56% year on year, reaching TL 14,344 billion. Total cash and non-cash loans increased by 53% compared with last year, reaching TL 10,226 billion. Total deposits, the biggest funding source for the sector, increased by 67% to TL 8,862 billion. The Turkish banking sector preserved its strong capital structure in 2022 as well. The capital adequacy ratio of the sector stood at 19.46%.

At VakıfBank, we continued our support for investment, employment, and production in Türkiye’s economy in 2022. By placing sustainability at the heart of our strategic business model, we created value for all stakeholders, our society, and the environment and supported the sustainable development of Türkiye. By increasing total assets to TL 1,681 billion, our Bank maintained its position as the second-largest bank in Türkiye. Loans contributed the most to asset growth. Our Bank’s support to the national economy through cash and non-cash loans reached TL 1,208 billion. Meanwhile, with our strengthening capital structure, our capital adequacy ratio was 15.19%.

VakıfBank will continue to support our entrepreneurs, small business owners, farmers, and employees in the upcoming period, just as it has been doing for the past 68 years, and will continue to contribute to the sustainable and strong growth of the Turkish economy.

I would like to take this opportunity to thank our customers, shareholders, and investors, who have trusted us; our employees, who have made great efforts in our success; and all our other stakeholders for their contributions.

Yours sincerely,

Mustafa SAYDAM

Chairman of the Board

A YEAR FULL OF ACCOMPLISHMENTSThe banking sector, which contributed the most to the growth of the Turkish economy, left behind another year of achievements.

TL 1,208 billion

The support we provided to the national economy through cash and non-cash loans reached TL 1,208 billion.