Message from the CEO

Dear Stakeholders,

In the third quarter of 2022, the negative impact of high inflation and growth concerns on the economic outlook continued. Global economic activity is experiencing a sharper-than-expected slowdown. The cost-of-living crisis, tightening financial conditions in most regions, Russia-Ukraine crisis and the lingering COVID-19 pandemic all weigh heavily on the outlook.

Despite these challenging conditions, Turkey recorded a strong growth of 7.5% in the first half of 2022. Even though data on industrial production and domestic demand in the third quarter point to a slight slowdown in growth rates, the economy continues to grow in a controlled manner.

The Turkish banking sector once again demonstrated its resilience in difficult conditions in this period, as it did in previous years. Despite all the uncertainties in the operating environment arising from the pandemic and geopolitical developments, Turkish banking sector continued to support the economy, while improving its key performance indicators further.

As Yapı Kredi, our support to the economy through cash and non-cash loans has increased by 40% year-to-date and 70% annually exceeding TL 791 billion. In TL cash loans, the Bank recorded a year-to-date growth of 58% and an annual growth of 68%. On the other hand, year-to-date TL customer deposit growth was 109%, well above the loan growth. Thus, the Bank's TL loan deposit ratio decreased by 34 points to 113% during the first half of the year.

While maintaining its support to the economy, the Bank further improved its capital and liquidity ratios. The FX liquidity coverage ratio rose to 587%, while the total liquidity coverage ratio realized at 163% level. On the capital side, in addition to internal capital generation, the contributions of being the first Turkish Bank adopting the internal ratings-based (IRB) approach, the consolidated capital adequacy ratio and the Tier 1 ratio rose to 17.6% and 15.5%, respectively (without the impact of regulatory forbearances).

I would like to take this opportunity to thank our customers, our shareholders for their trust, and our employees for their valuable efforts.


Gökhan Erün

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