Message from the CEO

Turkey has resumed its path of economic advancement in the third quarter, which initially started in early 2020, but was halted due to the COVID-19 pandemic. While proceeding with its developments in the new controlled social life, the government continued to implement new precautionary measures such as maximum number of people allowed for social gatherings, nationwide mandatory masks and flexible working shifts in the public sector depending on the progress of the outbreak.

Even in the uncertain times that erupted due to the COVID-19 pandemic and geopolitical tensions that surround our country, thanks to the strong and agile balance sheet structure of the sector with the support from the regulator, as well as the fiscal and monetary authorities, Turkish banking sector continued to maintain its solid fundamentals supporting the economic recovery and to provide aid to its customers when needed.

As Yapı Kredi, we continue to put utmost effort for the health and safety of our employees while preserving our uninterrupted level of service for our customers. While remotely working within the headquarters of the Bank rotationally, we demonstrate meticulous care for our social distancing and protective hygiene measures within all parts of our organization. In line with the new and protected normal in Turkey, we carefully continue to provide full service through our branches while putting extensive effort on digitalisation.

Moreover; in order to support our customers in these difficult times we have postponed the repayments of around 500 thousand customers. Equally important, we continued to take our leading position in the Credit Guarantee Funding Scheme to support our customers.

Looking at the first nine months of the year, with a TL focused volume growth, a sustainable revenue generation, focus on asset liability management and ongoing conservatism in asset quality approach, the Bank’s total assets increased to TL 492.5 billion and net income recorded at TL 4,315 million, corresponding a tangible return on average equity of 13.7%

Yapı Kredi’s strong liquidity, mainly in the foreign currency with a total liquidity coverage ratio at 146% level (foreign currency at 454%), continued to support the Bank’s balance sheet in case of further possible volatilities.

Despite the negative impact arising from the macro conditions and volatility, capital adequacy ratio realized at 16.7% and Tier-1 ratio at 13.5% (excluding forbearances) supported by ongoing internal capital generation.

In terms of performing cash loans, Yapı Kredi recorded TL 283.0 billion indicating 16.5% market share among private banks. Growth was driven by Turkish Lira loans and the Bank continued to support companies and exporters. At the same time, the Bank maintained its leadership position in credit cards with 17.5% outstanding volume market share.

In the first nine months of 2020, in terms of funding, the Bank recorded 16.6% customer deposit growth year-to-date, reaching to TL 263.5 billion, indicating 14.8% market share among private banks. In line with its strategic targets, the Bank increased its Turkish Lira demand deposit market share by 152 basis points to 17.0% and foreign currency demand deposit market share by 12 basis points to 13.5% on a year-to-date basis, supporting its cost of funding. Loans to deposits ratio including Turkish Lira bonds stood at 102% as of the first nine months of 2020.

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


Gökhan Erün

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