Message from the CEO

Dear Stakeholders,

Turkey has been successfully moving forward in its path of economic advancement despite the halt caused by the COVID-19 pandemic. As the vaccination efforts continue to have the country resume its normal way of life, the government continued to implement preventive measures in order to combat against the effects of the recent peak. While the precautions continue to take its toll on the day-to-day life and on the economy, Turkish Public Authorities have been providing extensive support to any citizens in need.

Even in these uncertain times that erupted due to the pandemic and to the geopolitical tensions that surround our country, thanks to the sound and agile balance sheet structure, ample liquidity and robust capital levels, Turkish banking sector continued to preserve its solid fundamentals and to endeavour support to the rejuvenation of the Turkish economy.

As Yapı Kredi, we put even more effort for the health and safety of our employees in order to mitigate any risks in this recent peak of the pandemic. While remotely working within the headquarters of the Bank, we proactively follow any developments over the course of the outbreak and immediately implement our measures accordingly. In line with the new precautionary measures in Turkey, we carefully continue to provide service through our branches while putting our accelerated efforts on digitalisation.

As we continue to provide aid to our customers in these difficult times, we postponed the repayments of more than 450 thousand customers at the end of 2020. Equally important, we continue to demonstrate our leading position in the Credit Guarantee Funding Scheme to support our customers.

Looking at the first three 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 534.7 billion and net income recorded at TL 1,453 million, corresponding a tangible return on average equity of 12.3%.

Yapı Kredi’s strong liquidity, mainly in the foreign currency with a total liquidity coverage ratio at 149% level (foreign currency at 462%), 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 15.4% and Tier-1 ratio at 12.6% (excluding forbearances) supported by ongoing internal capital generation.

In terms of performing cash loans, Yapı Kredi recorded TL 305.4 billion indicating 16.6% 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 16.4% market share in credit cards outstanding volume.

In the first three months of 2021, in terms of funding, the Bank recorded 12.3% customer deposit growth year-to-date, reaching to TL 291.1 billion, indicating 15.2% market share among private banks. In line with its strategic targets, the Bank increased its individual Turkish Lira demand deposit market share by 129 basis points to 17.6% 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 three months of 2021.

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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