Message from the CEO
I would like to start by celebrating the 100th anniversary of our Republic and commemorate Atatürk, the founder of our Republic, with gratitude. On this meaningful anniversary, I am also proud of the launch of our pre-school education program "Snowball for the Future", which we, as Yapı Kredi, launched aiming a stronger future with stronger generations.
Our country's economy continued its controlled growth during this normalization period and recorded an annual growth of 3.8% in the second quarter of 2023, with the support of domestic demand. On the back of increased confidence and stability environment that provided by the normalization steps taken, the International Monetary Fund revised its 2023 growth forecast for Türkiye upwards from 3.2% to 4% in the Global Economic Outlook Report published in October.
The Turkish banking sector continued to prove its resilience during this period as well. As Yapı Kredi, we continued to work towards our goal of creating long-term value in the 79th anniversary of our Bank's establishment, with our strong liquidity position and balance sheet, our solid capital structure, our human resources equipped with the competencies of the age, our agile management approach, prudent risk policies and most importantly, our belief in the future of our country.
With our pioneering role in the sector as the bank of firsts in 79 years, we have accomplished things beyond just numbers, leaving our mark in history. Our most important difference in the proud history we left behind has been our sense of responsibility towards our country and the society we live in. As an institution that always focuses on people, while providing unlimited service to our customers in our main field of activity, we have opened the doors of completely different worlds in every field we touch, especially culture-art, education and sustainability.
Our uninterrupted support to the economy through cash and non-cash loans has increased by 45% annually reaching TL 1.146 trillion. In TL cash loans, the Bank recorded a year-to-date growth of 32% and an annual growth of 53%. Moreover, year-to-date TL customer deposit growth was 49%, well above the loan growth. Thus, the Bank's TL loan deposit ratio further decreased by 11 points to 93% as of end of first nine months of 2023.
While maintaining its support to the economy, the Bank preserved its strength in capital and liquidity ratios. The FX liquidity coverage ratio was 408%, while the total liquidity coverage ratio realized at 197% level. On the capital side, with the internal capital generation contributions, the consolidated capital adequacy ratio and the Tier 1 ratio remained strong at 17.8% and 15.8%, 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
CEO