Message from the CEO

Dear Stakeholders,

Turkey has been successfully moving forward in its path of economic development this year, despite the pause caused by the COVID-19 pandemic since 2020, with the help of the ongoing and widespread vaccination efforts. As this massive effort to have the nation immunized, continue to have the country resume its normal way of life, the economy is also recovering from the tolls of the pandemic and its necessary preventive measures.

Even in the uncertain times caused by the pandemic, the geopolitical tensions and the volatility in the international markets, Turkish banking sector continued to preserve its solid fundamentals and to provide aid for the rejuvenation of the Turkish economy, thanks to the agile balance sheet structure, robust liquidity high capital levels and well-maintained profitability margins.

As Yapı Kredi, we continue to demonstrate our uncompromising mandate for health and safety of our employees in order to mitigate any potential risks of the pandemic. While remotely working within the headquarters of the Bank, we have redesigned our working spaces to adjust the needs of the post-pandemic era. As we proactively follow any developments over the course of the outbreak and immediately implement our measures accordingly, we remain alerted for the any potential variants of the virus. In line with the new normal in Turkey, we carefully continue to provide service through our branches while putting our accelerated efforts on digitalisation.

Looking at the first six months of the year, with a TL focused volume growth, a sustainable revenue generation, focus on asset liability management and asset quality, the Bank’s total assets increased to TL 555.9 billion and net income recorded at TL 3,685 million, corresponding a tangible return on average equity of 15.4%.

Yapı Kredi’s strong liquidity, mainly in the foreign currency with a total liquidity coverage ratio at 157% level (foreign currency at 503%), 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 16.2% and Tier-1 ratio at 13.8% (excluding forbearances) supported by ongoing internal capital generation and by the positive contributions of being the first Turkish Bank to adopt IRB approach.

In terms of performing cash loans, Yapı Kredi recorded TL 318.1 billion indicating 16.4% 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 six months of 2021, in terms of funding, the Bank recorded 13.7% customer deposit growth year-to- date, reaching to TL 294.9 billion, indicating 14.3% market share among private banks. In line with its strategic targets, share of demand deposits in total improved 132 basis points on a year-to-date basis to 37% in the first half of 2021, supporting its cost of funding. Loans to deposits ratio including Turkish Lira bonds stood at 104% as of the first six months of 2021.

Sustainability continued to be one of our strategic priorities during the first half of 2021. We have been taking significant steps to create long-term value for all stakeholders, increasing our emphasis and recognition of ESG initiatives and we are continuing to aim to reduce the environmental impact in relation to our own operations alongside with lending activities. In doing so, we signed our first sustainability linked syndicated loan of USD 962 million in May. We have declared that we will not finance new coal-fired thermal power plants and new coal mining projects, we have also secured EUR 40 million financing from Green for Growth Fund (GGF) and European Fund for Southeast Europe (EFSE).

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

Was this helpful? Yes No