Profit Distribution Policy

Issues about VakıfBank’s profit distribution are regulated in the Article 9 of VakıfBank’s Law No.6219 and the Article 84 and 85 of Articles of Incorporation. According to this, from the annual profit of the  Bank, the following amounts shall be distributed to: 
a) 5% to the ordinary reserve up to the amount of paid-in capital, 

b) 5% to the first extraordinary reserve,

c) 9% to the employees as dividend premium to be distributed within the principles determined by the  Board of Directors as limited with three months gross salary of the employee,

d) To the second extraordinary reserve from remaining balance in the amount that will be determined  by the General Assembly in case of a necessity for the Bank to continuously improve and to provide its  steady profit distribution or reinstate the assets according to the Article 523/2 of Turkish Commercial  Code,

Remaining ordinary reserve is allocated for the possible losses that will occur in the future and first  extraordinary reserve is allocated to retrieve extraordinary losses of the Bank.

General Assembly can decide to use the second extraordinary reserve for reinstating the assets or  continuous improvement of the Bank and providing its steady profit distribution. Meanwhile, it can be  also decided to use the excess capital from the capital increase partially or totally this sense.

According to profit distribution policy, a balanced policy is pursued between the benefits of the  shareholders and partnership.

Within this scope, VakıfBank determines its profit distribution policy by considering the compliance of  Banking Regulation and Supervision Agency and meeting the targeted standard ratios stated in the  Protective Provisions of Banking Law No. 5411 with prospective growth strategy, financial needs,  general economic conditions and capital adequacy ratio.

Each year, Board of Directors submits its profit distribution proposal to the General Assembly. The  profit distribution proposal of the Board of Directors is discussed and decided in the General Assembly and announced to the public through Public Disclosure Platform at the same day.

Profit is distributed in line with the way and date determined by the General Assembly within the scope  of relevant legislation.