Recent News

T.Vakıflar Bankası T.A.O borrowed USD 700 million from an international consortium of 26 banks through a club deal.The loan has three tranches with maturities 1,2 and 3 years amounting USD 375 million ,USD 128 million and USD 197 million. All in cost of the tranches are Libor+0,525% , Libor+0,625% and Libor +0,825%, respectively. The transaction is signed in İstanbul on the 20th December 2006.

VakifBank’s membership of WSBI was approved during the 21st World Congress of Saving Banks in Kuala Lumpur. WSBI was founded in 1924, currently has 105 members from 86 countries. WSBI represents savings and retail banks’ interests at an international level while also facilitating the provision of access to financial sectors worldwide, e.g. through training, consultancy services, etc., be it in developing or developed regions. VakifBank, with its widespread branch network within the country, provides banking products to different segments of the society especially with its success in retail banking provided a contribution to the society and became a member of WSBI as a first Turkish Bank in the institution.

Based on bank-only BRSA financials, gross profits were TL 995mm during the nine months of 2006. Net profit went up by 65% reaching TL 609mm YoY. The Banks total assets were TL 34.9billion with an increase of 7.7% from year-end 2005. Loans were TL 16.4billion and deposits TL 23.3million.

Mr. Bilal Karaman, the General Manager of VakifBank, made the following statements regarding the performance of VakifBank in the third quarter of the year 2006:

“VakifBank maintained its profitability despite slowdown in loan demand,  increasing interest rates, depreciation of TL  and increasing cost of funding  due to the volatility in the global and domestic markets during the second quarter of the year. We managed to increase our net interest income by 15% to TL 1,153million. Meanwhile, despite the expenses of restructuring, thanks to strong cost control policies, operating expenses increased by 12.7% and net profit reached TL 609million with an increase of 65% YoY.

Mr Karaman also stated that the loans increased by 64%YoY and 38% YtD, reaching TRY 16.4 billion. Total loans represent 47% of total assets and loan to deposit ratio reached 70%. There has been a rapid slowdown in loan demand, especially in retail loans in the 3rd quarter of the year. Consequently, VakifBank focused on developing a tailored product to stimulate the retail loan demand. “Falling interest rate” loan program was introduced with a very good timing and attracted more interest even beating our expectations. Thanks to the “Falling interest loan” and “TOKI projects housing loan program”, VakifBank increased its retail loans also in the 3rd quarter of 2006. VakifBank will continue to develop and introduce tailored products in retail and SME loans in order to maintain its leadership position.

With the help of strong capital VakifBank annouced a new product to the market. “Floating Down Interest Rate Programme”. This is a new retail loan product which offers Housing Loans, Auto Loans and General Purpose Consumer Loans.
In reflecting the fall in interests to consumers, the average interest rates of the 5 biggest players (Banks) will be reference point. Any 10 bps drop in the average of the top 5, will be reflected to consumers as 5 bps. There will not be any extra fee and commission charges.

VakifBank decreased its housing loan interest rates for all the ongoing projects of TOKI (Mass Housing Agency) and Emlak GYO (Real Estate Investment Company). This is the most comprehensive housing campaign ever in Turkey which will apply to 7 projects with 8.500 units of houses. New interest rates will be effective until end of October 2006. The interest rates per month are as follows:

Upto 9 months             0.00 %
5 years                        1.29 %
10 years                      1.39 %

Such low interest rates are achieved with the subsidization of construction companies rather than VakifBank’s pricing. The campaign is structured by VakifBank’s intensive financial engineering studies within a period of 40 days.

Based on bank-only BRSA financials, gross profits were TL 716mm during the first half of 2006. Net profit up by 103% to reach TL 423mm YoY. The Banks total assets were TL 33.8billion, with a return on average asset (ROAA) of 2,56%. Return on average equity (ROAE) for the same period is 21%.

Mr. Bilal Karaman, the General Manager of VakifBank, made the following statements regarding the performance of VakifBank in the first half of the year 2006:

“Despite the turmoil in the global and domestic markets during the second quarter of the year, VakifBank has maintained its profitability and growth. Net profits were up by 103%to score TL 423mm YoY.

VakifBank continued to support the SME’s, real sector and consumers. Loan portfolio has gone up to TL 16.1billion with an increase of 81% YoY and with an increase of 35% from year end 2005. Loan to asset ratio is up to 47% and loan to deposit ratio reached to 71% by growing on loans.

Net interest income reached to TL 781 million with an increase of 12.76% YoY through rational fund management and loan growth.

Despite the adverse  market conditions during the last quarter, VakifBank’s CAR came out to be 18.64%, which demonstrates its financial strength and the Bank’s growth potential.”

VakifBank has raised an amount of USD 700 million through a one-year club loan facility and with an all in cost of Libor+%0.525, by the participation of 22 international banks. The transaction was signed on 19th July, 2006.
The Mandated Arrangers on this transaction are: Alpha Bank A.E., American Express Bank GmbH, The Bank of Nova Scotia, The Bank of Tokyo-Mitsubishi UFJ, Ltd., BayernLB, CALYON, Citibank, N.A., Commerzbank Aktiengesellschaft, Dresdner Bank AG, Fortis Bank S.A./N.V., HSH Nordbank AG Luxembourg Branch, J.P. Morgan plc, Mashreqbank PSC, Natexis Banques Populaires, Raiffeisen Zentralbank Österreich Aktiengesellschaft, Standard Chartered Bank, UniCredit Group (represented by Bank Austria Creditanstalt AG and Bayerische Hypo- und Vereinsbank AG), Wachovia Bank, National Association, WestLB AG London Branch, Banca Intesa S.P.A, BHF Bank AG ve ING Bank NV.

Standard Chartered Bank and WestLB AG, London Branch today announced the completion of a US$ 915 million securitisation issue (the “Issue”) for Türkiye Vakıflar Bankası T.A.O. ("VakıfBank"). This Issue by VB DPR Finance Company (the Issuer) is VakıfBank’s inaugural issue into the international debt capital markets under VakıfBank’s diversified payment rights (“DPR”) programme. Four of the five Notes issued under the programme are insured by monoline insurers.

This Issue is also notable for being the largest single issuance into the international capital markets for a 144A and Regulation S securitisation out of Turkey and is one of the largest ever DPR securitisation issuances to date internationally. This Issue combined with VakıfBank’s successful IPO in 2005, positions VakıfBank as one of the top tier banks in Turkey.

The Issue was distributed principally to a range of institutional investors located in Europe, the US and the Middle East. Standard Chartered and WestLB acted as Joint Lead Managers and Joint Bookrunners for this transaction.

Tanju Yüksel, Assistant General Manager for VakıfBank commented, “Given the recent market events, we are delighted with the very professional and timely execution of the transaction by both Standard Chartered Bank and WestLB, as joint Lead Managers and Bookrunners, and the monoline insurers, FGIC, MBIA, Radian and Ambac whose support was integral to the success of the Issue. The market reception and the pricing of all series of the Notes was very much to our satisfaction. Importantly for VakıfBank, we are now one of four Turkish banks that have successfully executed an insured AAA / Aaa DPR Issue in the 144A / RegS market. This is yet another successful step forward for VakıfBank in establishing itself in the international capital markets.”

Noel Edison, Managing Director for Standard Chartered Bank commented, “We were very pleased with the final execution of this transaction. The transaction was heavily subscribed and priced at tight levels placed with 23 different investors, which underscores the interest from investors in this inaugural issue by VakıfBank, despite the current market conditions. With the ongoing support of the monoline insurers, we expect to see continued use of the Turkish DPR programmes for large issues.”

Julian Turner, Director in Asset Securitisation at WestLB AG, London Branch, commented, “A strong book containing predominantly end investors located across Europe and the U.S. has been delivered for VakıfBank. It’s particularly pleasing to come to market with a combined Rule 144A / RegS issuance together with Standard Chartered, where our combined strength on placement has been demonstrated on this deal. Congratulations to VakıfBank on another successful Payment Rights transaction”.

The DPR programme is an important part of VakıfBank’s international funding efforts, providing VakıfBank with the opportunity to access international term funding and a global investor base.
VakıfBank has significant experience as an originator and servicer of remittance securitisations, with the first DPR securitisation programme established in 2001 and five transactions issued since 2001 totalling US$ 1.45 billion, all of which have subsequently repaid in full.
The transaction was arranged and underwritten on a joint lead basis by Standard Chartered and WestLB.

VakifBank is pleased to announce below the list of Assistant General Managers, their responsibilities with 4 new assignments and short biographies of them.

Mr. Onder HALISDEMIR
Assistant General Manager, Retail Banking - Credit Cards - IT - Public Relations
Having started to work at VakıfBank as an Assistant General Manager on 21.06.2006, Onder HALISDEMIR was Head of Retail Banking in Akbank and before that position he worked in various positions for Alternatifbank. He is a graduate of Marmara University, Faculty of Economics and Administrative Sciences and has a Phd. on Banking from Marmara University. He has also publications about ‘Mortgages’ and ‘Retail Banking’ issued by Capital Markets Board of Turkey and Banking Association of Turkey.

Mr. Metin Recep ZAFER
Assistant General Manager, Financial Affairs & Accounting – Planning & Organisation
He joined VakıfBank as an Assistant General Manager on 13.06.2006. Before his appointment, Mr.Zafer has been managing Financial Control Division of Ziraat Bank. He is a graduate of Gazi University and Marmara University, Faculty of Economics and Administrative Sciences and he has a Phd. from Marmara University on Banking and Insurance.

Ms. Birgul DENLI
Assistant General Manager, Investment Banking
Previously having worked for Yapi Kredi Bank, Iktisat Bank, Maddox Financial Services Ltd., Citigroup (SSSB) and VakıfBank International AG in various positions Ms.Denli was appointed as an Assistant General Manager at VakıfBank on 15.06.2006. She is still a board member of VakıfBank International AG. Ms.Denli is a graduate of ODTU (Middle East Technical University) – Faculty of Science and Literature and has a post-graduate degree from London Metropolitan University

Mr. Dogan PENCE
Assistant General Manager, Commercial Banking - Legal Entities - NPL Recovery
Mr.Pence started to work as an Assistant Auditor in 1991 in VakifBank. He served as Head of the Commercial Loans Department before his appointment as an Assistant General Manager on 07.06.2006. Mr.Pence is a graduate of Istanbul University, Faculty of Political Sciences.

VakıfBank introduced a new loan to Merchants and Craftsmen pensioners. The loan is extended to solvent merchants and craftsmen pensioners who are eligible to receive pensions but have overdue obligations to social security system which prevent them from receiving pensions.
The Bank targets customers who’ll receive salaries from VakıfBank once they get out of their obligations to the system and the monthly installments will be deducted from the pensions.
The loans are to be collateralized by either real estate or third party guarantee.
Maturity of the loan is up to 5 years with an interest rate between 1,25 and 1,55% per month.

1. The Bank’s 2005 activities were assessed, the board of directors and auditors were discharged of financial statement and  income statement.
2. The distribution of dividend to the shareholders of VakifBank, from net profit of 2005, to A group shareholders  171.730.772,46 TL, to B group shareholders 62.447.553,62 TL, to C group shareholders 64.633.218,00 TL, to D group shareholders 100.540.561,33 TL and totaly 399.352.105,42 TL were decided. Thereby gross 0,3122 TL (%31,22) and net 0,2810 TL (%28,10) will be distrubuted cash divided to 1 TL nominal value of equity.
3. In General Assembly, increasing of VakifBank’s ceiling of registered capital to 5 billion TL, which was 1,3 billion TL, has been approved.
    
4. The dividend policy of the Bank for year 2006 and onwards was approved: “Provided that the capital adequacy ratio of the Bank is adequate with the Management targets, the Bank does not need additonal capital and there is no unfavorable expectations with the economic and financial environment, to pay dividend from the net profit after deducting tax losses carried forward, which is not eligible for distribution and after allocating teh reserve requirements by law, to be provisioned under Article 9 of the Banks Act and articles 84/A, 84/B and 84/C of the primary contact (articles association).”
    
5. Articles 7,8 and 11 of prime contract of the Bank has been changed. Amendments of the prime contract is attached.
    
6. Some of  articles of circular about employee rights has been changed.
    
7. In General Assembly, ethic principles of banking, which is set by the Turkish Bankers Assosiation, has been approved.
    
8. Yusuf Beyazıt, Bilal Karaman, A.Müfit Cengiz, M. Zeki Akıllıoğlu, Selahattin Toraman, Hasan Özer, Cem Demirağ, Ragıp Doğu and Erkan Topal were elected to the Board of Directors and Ahmet Tanyolaç and Faruk Eroğlu were elected to the Board of Auditors. Under the principles of corporate governors, M. Zeki Akıllıoğlu, Cem Demirağ and Erkan Topal would be independent members in the board of directors.