About Us History
2004 to present day

In September 2004, VakifBank mandated an iternational consultancy firm to review the financial and operational performance of VakifBank. VakifBank continues to improve operating efficiencies and overall performance through a number of initiatives including:

  • organizational restructuring, including the reorganization of VakifBank’s head office and the consolidation of certain business units to create increased operating efficiencies;
  • increasing its focus on customers, including expanding its customer base, cross-selling to existing customers and improving customer service by utilizing both its extensive branch network as well as its continually expanding range of alternative distribution channels;
  • remodeling nearly all of its existing branches and exploring opportunities for new branch openings, particularly in the Marmara region;
  • focusing on sales at the branch level by shifting staff to sales functions;
  • increasing its investment in human resources and optimizing personnel utilization;
  • upgrading and overhauling the capacity and quality of its information technology systems, hardware and applications throughout both VakifBank’s headquarters and its branch network; and
  • developing its internal control functions, including the implementation of regional portfolio managers in its commercial banking operations and increasing responsibility at the branch level.

VakifBank intends to complete implementation of a majority of these initiatives during 2007.

2000-2003

In 2000, VakifBank completed its first Eurobond issue for €200 million with a term of three years. In addition, VakifBank’s subsidiaries, Gunes Insurance, Vakif Financial Leasing, Vakif Investment Trust Company, Vakif Real Estate Investment Trust Company and Vakif Venture Capital Company all offered their shares to the public and listed on the Istanbul Stock Exchange.

In 2001, VakifBank also introduced internet banking with the launch of its internet site “www.vakifbank.com.tr.” VakifBank currently has over 751,869 internet banking customers, an increase of almost 50% since 2003. In 2001, VakifBank completed the first long-term borrowing following the Turkish economic crisis through the securitization of diversified payment rights for an amount of US$200 million and a term of five years. VakifBank also became the first Turkish commercial bank to launch a syndicated loan facility following the economic crisis for an amount of US$110 million. Also in 2001, VakifBank established a senior risk committee as well as a bank-wide risk committee, an internal control department and a new data processing center.

In 2002, VakifBank had the largest number of credit cards issued in Turkey and ranked first in Europe in terms of the number of Maestro cards issued by a banking institution, according to MasterCard.

In 2003, VakifBank continued its strategy to expand its customer base by effectively promoting both existing and new services to a larger segment of the population, including the upper middle class, middle-aged individuals with a steady source of income. VakifBank borrowed US$200 million in a syndicated deal in which 36 banks participated, including 14 arrangers. In July 2005, VakifBank increased this syndicated loan to US$750 million with 62 banks, including 34 arrangers. In September 2005, VakifBank closed the 2005‑A Tranche of its new diversified payment rights securitization program which amounted to US$750 million. The securitization resulted in the sale of the diversified payment rights to the SPC. Also in 2005, VakifBank and VakifBank Pension Fund sold, respectively, 27,900 million and 4,300 million Class D common shares of VakifBank in the IPO, representing 21.8% and 3.37%, respectively, of VakifBank’s total shares.
Since 2003, VakifBank has initiated the following projects:

  • a marketing and sales oriented new branch organization to promote customer satisfaction;
  • the “Remote Access” (EXAPI System) enabling VakifBank’s customers to trade directly on the Istanbul Stock Exchange;
  • the “First Step Mutual Fund” for parents wanting to invest for their children; and
  • a branded credit card program for groups such as students, teachers and soldiers as well as the “Supporter Credit Card” for the fans of the three most popular football clubs in Turkey’s Super League.
1990-1998

In the early 1990s, VakifBank increased the scope of its consumer lending and diversified its loan portfolio by broadening its lending practices to include equipment financing, enterprise loans, auto loans, housing loans as well as loans for marriage, vacation and education. It began to expand its credit card business by adopting principles of reputation credit and increasing its base of merchant customers, students and working class employees as well as by automating and centralizing its point of sale authorization system. VakifBank also laid the groundwork to become a leader in alternative distribution channels by introducing self-service banking, telephone banking, and a mobile bank branch office — a full service branch office on wheels (“Autobank”). VakifBank was the first in Turkey to offer payment services by credit card over the telephone. In 1993, VakifBank obtained its first syndicated loan in an amount of US$38.5 million and established Vakif Offshore in the Turkish Republic of Northern Cyprus.

In 1995, VakifBank overhauled its management structure in order to modernize and conform with contemporary bank management practices. VakifBank also established its New York branch in order to increase its exposure to international markets. The New York branch conducts international operations, including trade finance and corporate banking. In 1996, VakifBank established Vakif Gayrimenkul, a real estate investment trust, and Vakif Risk Sermayesi Yatirim Ortakligi A.ª., the first venture capital company in Turkey. In 1997, VakifBank conducted its first securitization for US$130 million in relation to credit and debit card receivables.

In 1998, VakifBank established its first home banking platform for customers with substantial business volume. VakifBank also installed new computer systems to automate import and export transactions within the branch network for those branches conducting trade finance activities. VakifBank became the first in Turkey to offer long-term home loans with maturities of up to 20 years. VakifBank also introduced the “VakifBank Primary Schools” program, a scheme designed to turn former branch offices into schools for homeless children.

1954-1980

VakifBank was founded on April 13, 1954 under the special law “Turkiye Vakiflar Bankasi Turk Anonim Ortakligi Kanunu.” VakifBank’s initial purpose was the management of the cash revenues and expenditures of the charitable foundations set up during the Ottoman Empire period. VakifBank was established in Ankara and quickly began conducting banking activities with branch offices in Istanbul, Ankara and Izmir.

In 1956, after conducting extensive studies and surveys in the major economic centers across Turkey, VakifBank continued its growth by opening an additional 10 branches. In 1957, VakifBank made its first venture towards broadening its services with the establishment of Gunes Insurance. Over the next 20 years, VakifBank continued to expand and widen its geographic presence in Turkey by opening new branches throughout Turkey, including in other important commercial and industrial regions. By 1977, VakifBank had 206 branch offices.
During the 1980s, VakifBank sought to keep pace with technological advances and placed special emphasis on improving its operations through investment in technology. VakifBank improved automation and became fully integrated through a centralized mainframe computer system. In 1982, in an effort to conduct banking operations in a more dynamic manner and serve the particular needs of various regions, VakifBank established regional directorates in Istanbul, the Aegean and the Cukurova regions.