₺15 billion 23 million net profit from VakifBank in the third quarter

The financing support provided by VakifBank to the Turkish economy through cash and non-cash loans increased by 70% on an annual basis, reaching ₺1.8 trillion.

VakıfBank made a net profit of ₺15 billion 23 million in the third quarter of 2023.

According to VakifBank’s statement, the Bank, which continues its uninterrupted support to the real economy as one of the two largest banks in Turkiye in terms of asset size, shared its financial results for the third quarter of 2023 with the public.

In the said period, VakifBank, which increased its asset size by 77% compared to the same period of the previous year to ₺2.4 trillion, made a net profit of ₺15 billion 23 million by allocating ₺3 billion 519 million of tax provision from its gross profit of ₺18 billion 542 million.

VakifBank General Manager Abdi Serdar Ustunsalih, whose evaluation of the bank’s third quarter financial results was included in the statement, said, “The third quarter of 2023 was a period when the tightening steps taken by our economic management and the normalization in macroeconomic policies were felt especially in our sector. In light of all these positive developments, we continued to manage our balance sheet efficiently in line with our economic management. As VakifBank, in line with our selective credit policy, we continued to support our customers in the commercial and SME segments, especially those focused on exports and investments and contributing to our country’s employment.”

Stating that VakifBank’s total commercial loan portfolio size exceeded ₺1.1 trillion with the strategies followed, Ustunsalih said, “With our leadership in this field, we have shown that we continue to provide the real economy and our companies with the financial support they need, regardless of the period. It is a source of pride for our Bank to not slow down in the support we provide to our country during this period when we celebrate the 100th anniversary of the founding of our Republic.”

“Total deposits continued to be our main funding item”

On the funding side, Ustunsalih stated that total deposits continued to be the main funding item of VakıfBank, exceeding ₺1.7 trillion, with an increase of 78% on an annual basis, and said:

“Thus, our market share in this field increased from 11.9% the previous year to 12.8%. Our biggest priority here is to maintain our widespread customer and deposit structure and reach as many customers as possible. Thus, to provide our customers with the support they need to make the most of their savings. In addition, thanks to the steps taken by our economic management, we observe a gradual but significant decreasing trend in deposits in the KKM product group, both within our Bank and throughout the sector. We will continue to follow the practices in this field under the leadership of our economic management.

“VakifBank became the first Turkish Bank to open the market with a 5-year maturity after 2 years”

VakifBank successfully completed a new secured funding transaction with an international bank in the amount of $500 million and a 5-year maturity in August 2023. Reminding that VakifBank reached an agreement with the French Development Agency (AFD) to use the second tranche of €100 million within the scope of the “Green Housing Project” with a total term of 10 years, with a grace period of principal for the first 3 years, Ustunsalih said:

“VakifBank has once again achieved an industry-leading development. Very recently, at the beginning of September, we successfully completed the issuance of a sustainable Eurobond of $750 million with a 5-year maturity, and became the first Turkish bank to open the market with this maturity after two years. The transaction attracted $2.6 billion of demand from nearly 180 institutional investors from different continents, 3.5 times the transaction size. So far in 2023, six Turkish banks have come to the market with a total of seven different eurobond transactions. Thanks to the right strategy, timing and the positive perception we created among investors, we became the bank that managed to bring together three components that are normally difficult to come together: the lowest cost, the highest amount and the longest maturity in a single transaction.”

Ustunsalih stated that the macroprudential measures taken by the economic management and the tightening steps in the monetary policy implemented simultaneously have increased the confidence in Turkiye and Turkish banks again, and said: “As can be seen, as the most active Turkish bank in the field of international funding, we continue to bring many new foreign resources to our country, and on the other hand, we make these resources available to the real sector without delay. As the best example of this, I would like to remind you once again that we made available the entire $250 million resource we signed with the World Bank in 2020 to our companies in accordance with its purpose. In this sense, we will continue to support our companies in the real sector in the future.”

Source: AA / Prepared by Irem Yildiz

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