VakıfBank, strengthening its position as Turkey’s second-largest bank, increased its asset size by 64 percent in the first quarter of 2023 compared to the same period last year, reaching 1.8 trillion Turkish Liras.
In the first quarter of 2023, VakıfBank donated a total of 12 billion Turkish Liras to heal the wounds of the devastating earthquake disaster that deeply affected the whole of Turkey and to support the people in the region. The bank’s net profit from operations in the first quarter amounted to 4 billion 503 million Turkish Liras.
Celebrating its 69th anniversary in April, VakıfBank shared its financial results for the first quarter of 2023 with the public.
VakıfBank’s financing support to the Turkish economy through cash and non-cash loans increased by 60 percent on an annual basis, reaching 1.4 trillion Turkish Liras. During the same period, cash loans reached 1.1 trillion Turkish Liras with a 69 percent annual increase, while the total assets exceeded 1.8 trillion with a 64 percent annual increase. As a bank of this magnitude, VakıfBank prioritizes maintaining strong capital ratios. With the capital increase transaction of approximately 32 billion Turkish Liras carried out with its majority shareholder, Turkey Wealth Fund, which had a positive impact of about 284 basis points on capital ratios, the bank further strengthened its equity.
“Our first-quarter financial results demonstrate VakıfBank’s strong position.”
VakıfBank’s CEO, Abdi Serdar Üstünsalih, commented on the financial results of the first quarter, expressing condolences to those who lost their lives in the earthquake disasters on February 6 and stating that VakıfBank provided all the necessary support to restore normalcy in the region with its spirit of solidarity. Üstünsalih emphasized the bank’s commitment to sustainable financial services as one of Turkey’s two largest banks, and highlighted their strong technological infrastructure. He further mentioned that the first-quarter financial results once again demonstrated the bank’s strong position. VakıfBank continues its work with a fast start to the year, supporting the national economy through its asset size, credit support, deposit achievements, and international financing transactions. On the bank’s 69th anniversary, they expressed their commitment to contribute to the country’s economy, achieve further success, and reach all segments of society.
VakıfBank also had a successful period in terms of TL deposits, which are their main source of funding. The bank’s total deposits reached 1.3 trillion Turkish Liras with a quarterly increase of 11 percent and an annual increase of 83 percent. TL deposits increased by 22 percent quarterly and 139 percent annually, reaching 829 billion Turkish Liras. VakıfBank continued to reduce the asset-liability maturity gap on the Turkish Lira side with its currency-hedged deposit accounts product group, which reached approximately 184 billion Turkish Liras, and effective balance sheet management.
Additionally, VakıfBank achieved the largest single-tranche DPR securitization and funding transaction among Turkish banks. Through this transaction, the bank raised a total of 2 billion US dollars from international markets. The transaction, which involved the participation of nine foreign banks and consisted of two tranches with maturities of 4 and 5 years, holds the distinction of being both the largest single-tranche securitization and funding transaction conducted among Turkish banks.
Source: (BYZHA) Beyaz Haber Ajansı
