YAPI KREDİ
Yapı Kredi

Yapı Kredi is among the 10 most valuable brands in Turkey.

Yapı Kredi is among the 10 most valuable brands in Turkey.

Yapı Kredi is among the 10 most valuable brands in Turkey.

Yapı Kredi's digitalization efforts were recognized with the "World's Best Mobile Banking Application" award.

Yapı Kredi ranks among Turkey's top ten most valuable brands with its sustainable, customer-focused banking philosophy and innovative approach.

As a strong financial services group, Yapı Kredi's operations include: Retail Banking (individual banking, SME banking, Platinum Banking and card payment systems); Corporate and Commercial Banking; Private Banking and Wealth Management. The Bank's operations are supported by domestic subsidiaries engaged in portfolio management, brokerage, financial leasing and factoring as well as overseas banking subsidiaries based in the Netherlands, Russia, Azerbaijan and Malta.

Smart growth: Sustainable and healthy

In 2015, Yapı Kredi continued to build on the Growth-Focused Investment Strategy, which the Bank initiated in 2014. This strategy helps bolster Yapı Kredi's standing in the sector and maintain a sustainable profitability performance.

The main pillars of the strategy are investments in digital channels, ATMs and the branch network coupled with measures to boost customer acquisition and operational efficiency. To this end, Yapı Kredi opened 77 new branches over the last two years, expanding the branch network to 1,000 locations; in addition, it increased the ATM network to 4,332 ATMs by adding 1,299 new ATMs. With a total workforce of more than 19 thousand employees, Yapı Kredi's customer base includes 11 million active customers and 21.3 million total customers.

For Yapı Kredi, 2015 was a year of developing and enriching all digital channels, mobile banking in particular, with the rapidly changing world and diversifying customer demands. Pioneering the digital transformation of banking, Yapı Kredi's digital banking active customer base expanded 80% and reached 2.6 million customers in the last two years. İn this period, Yapı Kredi's internet banking market share increased 330 basis points and reached 14.9%. Likewise, its mobile banking market share increased 147 basis points and reached 12.4%. As of 2015 year-end, alternative distribution channels share in total banking transactions was around 85%, one of the higher figures in the sector.

In 2015, Yapı Kredi increased its total cash and non-cash loans volume by 21% to TL 210.1 billion. The Bank is the 4th in this field with an 11% market share among all banks while it is the 3rd bank with a 17% market share among private banks.

As a result of strong growth in general purpose loans and SME loans, which generate significant value for the Bank, Yapı Kredi's total cash loan portfolio increased 21% to TL 152.5 billion. In this segment, the Bank ranked fourth in the sector with a market share of 10.3%. Among private banks, Yapı Kredi held a market share of 16%, and ranked third having moved up one place over the last two years.

During the year, total deposits grew 21% – above the sector average – to TL 130 billion. Yapı Kredi ranked fifth in total deposits industry-wide with a market share of 10.2%. Among private banks, Yapı Kredi ranked fourth and has a 15.3% market share.

Yapı Kredi posted TL 1,909 million in net profits in 2015. The Bank's return on average tangible equity stood at 9.7% and its capital adequacy ratio amounted to 13.8% despite strong loan growth.

Robust and diversified funding base

The Bank continued to diversify its funding sources in 2015. During the year, the Bank raised USD 4.6 billion through syndications, securitizations, bond issuance and other financial instruments.

Awards received for a successful year

Yapı Kredi is on the mark when it comes to identifying banking and social needs and has received considerable praise for its performance. The Bank received nearly 30 awards from both national and international organizations in different fields. In "Turkey's Most Appreciated Companies" survey, conducted by the leading Turkish business magazine Capital, Yapı Kredi was designated one of the country's top three banks. Meanwhile, Marketing Türkiye named Yapı Kredi as "The Bank that Makes Life Easiest for Clients" and "The Bank that Best Understands the Client." Yapı Kredi's focus on digitization earned it the "World's Best Mobile Banking App" award at the renowned Stevie Awards.

Corporate Governance rating

In 2015, Yapı Kredi's Corporate Governance rating was raised from 92.51 to 93.35.

Outlook, targets and strategies for 2016

In 2016, the banking sector is expected to demonstrate loan growth of 13% and deposit growth of 11%. The net interest margin is anticipated to remain at its 2015 level while non-performing loans could increase 40 basis points.

Over the last two years, Yapı Kredi has invested heavily in branches, ATMs and employees in order to strengthen its service network. Currently, the Bank will focus on further bolstering its operational performance and efficiency. At the same time, Yapı Kredi will maintain profitability while sustaining its asset quality, capital and liquidity base. A leader of the digital transformation in banking, Yapı Kredi will continue investing in this area in 2016 to boost its standing in the sector. In 2016, Yapı Kredi is expected to expand its total loan and deposit portfolio in line with the sector average, while outpacing the sector in higher value-creating products such as general purpose and SME loans. Despite rising deposit costs, the net interest margin will be sustained by efficient loan pricing, while fee and commission growth will be driven by customer acquisition.