Recent News

     VakifBank rolled over its one year maturity USD 375 million tranche of the USD 700 million syndicated loan borrowed in December 2006 by raising the same amount from a consortium of 23 banks. The loan has an interest of Libor+ %0.25.

     VakifBank General Manager Bilal Karaman stated ‘’ Volatility, intensifying and turning into a crisis in international markets, caused liquidity narrowing in debt markets. Foreign banks became overcautious in lending, due to the unexpected huge losses related to their mortgage portfolios. Under these circumstances, Vakifbank managed to roll over USD 375 million tranche with the lowest possible price. This confirms the ongoing trust to Turkey and VakifBank . We will use the syndicated loan for our customers pre-export finance needs.’’

     VakifBank, according to the financials for the period January 1-September 30 2007, increased its gross profit to TRY 1.252 million. The bank's net profit after tax & provisions for the same period reached TRY 809 million, up by %46 YoY and % 27 QoQ.VakifBank's total assets rose to TRY 40 billion, ROA was %3,3. ROAE was up from %19,65 in 3Q06 to %27,6 in 3Q07.

     General Manager Bilal Karaman stated " Thanks to the rapid loan growth and drop in the cost of deposits in the third quarter, VakifBank's 3Q 2007 net profit reached TRY 809, up by %46 YoY. Net fee & commision income with a %13 increase YoY has been one of the drivers of increased profitability.

     At the end of 3Q 2007, total loan portfolio was up by %15,5 YTD, while TRY loans were up by a stronger %22,5 YTD. Thus the rations of loan to total assets and loan to deposits were up to %52 and %77 repectively.General purpose consumer and housing loans were the two main performers with %35 and %14 growth respectively.

     VakifBank opened 33 new branches this year. By reaching 385 branches at the end 2007 we are aiming to pursue the loan growth strategy especially in consumer and SME loans."

     Vakifbank, in order to implement its growth strategy by way of co-branding with one of the existing credit card brands, has chosen to team-up with Yapi Kredi Bank within the context of World Credit Card Programme.

     Vakifbank's Board of Directors has authorized its General Manager to proceed and complete the signing of the final agreement.

     Vakifbank, according to the financials for the period January 1 – June 30 2007, increased its gross profit to TRY 797 million. The bank’s net profit after tax & provisions for the same period reached TRY 479 million, an increase of % 32 YoY and % 18,5 QoQ. While Vakifbank’s total assets rose to TRY 39,2 billion; ROA was %2,7. ROAE increased to %23,4 compared to %17,3 at the end of year 2006.

    General manager Bilal Karaman stated ‘’ Vakifbank, in 2Q of 2007, raised its net interest income to TRY 790 million, total operating income to TRY 1.256 million and gross profit before tax & provisions to TRY 797 million with increases of %9, %19, %23 YoY respectively. Accordingly, our Bank’s net profit in 1H 2007 reached TRY 479 million, an increase of %32 YoY.

    Vakifbank’s loan portfolio grew by %17 compared to same period in previous year, reaching TRY 18,9 billion. Thanks to %13 increase YTD in TRY loans, the ratios of loan to total assets and loan to deposits were %48,1 and %73 respectively. While highest growth rate came in retail loans with %12, general purpose consumer loans was the best performer in retail loans with an increase of %22.

   At the end of 1H 2007, thanks to %12 YTD increase in TRY deposits, our total deposits were up by %14 YoY reaching TRY 25,8 billion.

   With 11 branches opened in 1H 2007, we will continue to pursue our growth strategy in Consumer & SME businesses with another 60 branches opened up by end of the year.’’

     Vakifbank raised USD 700 million through a one-year term loan facility from international debt markets for pre-export finance. The loan was oversubscribed by USD 140 million, total demand reaching USD 840 million. However, Vakifbank, in line with its needs, preferred to draw USD 700 million.

    Raised by 29 banks of 13 countries, the loan has an all in cost of Libor + % 0.475.

    Abn Amro, American Express Bank Ltd, The Bank of New York, The Bank of Nova Scotia, The Bank of Tokyo-Mitsubishi UFJ Ltd., BayernLB, Citibank N.A., Commerzbank Aktiengesellschaft, Depfa Bank Plc, Deutsche Bank AG, Dresdner Kleinwort, DZ Bank AG, Fortis Bank S.A./N.V., The Governor and Company of the Bank of Ireland, ING Bank N.V., J.P. Morgan Plc, Mashreqbank PSC, Natixis, Unicredit Group, Wachovia Bank N.A. and WestLB AG were the Mandated Lead Arrangers; other arrangers were Barclays Bank Plc, BHF-Bank AG, HSH Nordbank AG, Intesa San Paola SpA, The Saudi National Commercial Bank, Dexia Bank Belgium SA, Habib Bank AG Zurich and UBS AG.’’

   The loan agreement was signed on July 12, 2007 in Istanbul with the attendance of Vakifbank General Manager Bilal Karaman and senior representatives of creditor institutions.

   Vakifbank General Manager Bilal Karaman stated "Vakifbank will increase its support to the real sector with this new loan secured for pre-export finance. We will contribute to the competitiveness of the real sector and therefore to the Turkish Exports especially through SMEs. A total of USD 840 million demand from international markets for the loan during a period of parliamentary and presidential elections, was obtained with the lowest possible price paid to such facilities, confirms the trust in Turkey and Vakifbank."

     Vakifbank reached an agreement with IBM on Customer Oriented Transformation Project Vakifbank, continuing its innovational practices with investments in technological infrastructure, in parallel to its Customer Oriented Banking understanding, shook hands with IBM for the transformation project. Within the context of the agreement which will be valid for two years and cost approximately USD 25 million, IBM will provide Vakifbank with services of front office, CRM, MIS (Customer Relations Management, Management Information Systems) and Data Warehouse Solutions and will set up software and hardware for these. Vakifbank’s customer oriented transformation project includes very basic changes and implementations at the branches, which are the most extensively used distribution channel. This project aims to improve Vakifbank’s relations with its corporate, commercial and retail clients, increase its performance in gaining new customers, ensure faster and higher quality services oriented to the needs of different customer segments.

    IBM, integrating Oracle Siebel products, will be responsible for tailoring these products to the needs of Vakifbank and enable improvements in business processes at all points where Vakifbank is in touch with its customers. Additionally, IBM will provide the middleware and hardware necessary for the integration.

    Regarding the agreement, Vakifbank General Manager Bilal Karaman stated: “Banks, operating under global competition, have to follow the technological developments closely. To sustain competitiveness and growth in the sector seems possible only through investments in technological infrastructure. The transformation process in our bank, continuing for two years is customer oriented restructuring projects. With investments made in our technological infrastructure, we aim to provide the fastest solutions to the customer, respond to rising customer expectations faster and more effectively as well as with an innovational broad service understanding, in line with our customer satisfaction oriented service understanding. Our cooperation with IBM is a part of this process. As a result of this investment, we will also access the database and reporting standards which are necessary for Vakifbank’s roadmap in transition to Basel II regarding the credit, market and operational risk management. Estimated cost of the restructuring project which started in 2005 and the technological infrastructure and equipment investments in the context of this project is close to USD 200 million. Vakifbank, developing growth oriented projects and putting these into practice in recent years, will continue to undertake more important projects."

    IBM Turk General Manager Eray Yüksek stated: “We are proud to be with Vakifbank in this very important project per our mission to lead the technological development of the Turkish Banking Industry. Thanks to our presence in Turkish financial sector for 70 years and our experience from countless global transformation projects, we are starting a long-term partnership with Vakifbank. It is widely accepted that one of the most important success criteria in banking over the next 20 years will be customer orientation. Transferring our global expertise to all platforms where Vakifbank is in touch with its customers, we will carry our customer to a more competitive position.’’

Arranged under the leadership of ABN Amro Bank NV, Citibank N.A. and ING Bank N.V., transaction has one tranche of USD 150 million with 8-year maturity and two transactions USD 350 million with 10 year-maturity.

While tranche of USD 150 million with 8 year maturity and USD 150 million with 10 year maturity were rated by Moody’s and S&P as Baa2 and BBB-, respectively; tranche of USD 200 million with 10 year maturity, wrapped by MBIA and was rated as AAA.

Accordingly, Vakifbank, including the transaction of USD 915 million executed in 2006, has a long-run funding of USD 1,415 million.