Message from the Chairman

Dear Stakeholders,

We are deeply saddened by the devastating earthquake that affected many provinces. My deepest condolences to those who lost their lives in the earthquake and to their families, and a quick recovery to the injured. As Koç Group, with our companies operating in various fields, we are striving to heal the wounds of the disaster and reach those in need.

In the first quarter of 2023, the global markets focused on growth, inflation, central bank policies and developments in the banking sector. The economic outlook remains uncertain due to overall concerns about the global financial sector following the bankruptcy of Silicon Valley Bank in the US, high inflation levels and the continuing effects of Russia-Ukraine war. According to the International Monetary Fund's Global Economic Outlook report dated April 2023, global growth is expected to slow down to 2.8% this year and then settle around 3.0% in 2024.

Turkey has been able to grow its economy with a controlled manner despite the challenging backdrop. The country has recorded an annual growth of 5.6% supported by foreign demand in the first half of the year and by domestic demand in the second half of the year.

The Turkish banking sector continued to support the economy, while strengthening its balance sheet structure. In the first three months of the year, total loans increased by 53% annually and reached TL 7.940 billion. In the same period, the deposit base grew by 68% to reach TL 9.354 billion. Thus, the loan/deposit ratio of the sector improved by 8 points compared to the same period of the previous year and decreased to 85%.

On the asset quality side, the positive trend continued, and the non-performing loans ratio decreased by 26 basis points to 1.8% since the end of 2022.

Yapı Kredi continued to contribute to the Turkish economy and the Turkish banking sector with its commitment to sustainability in all aspects of its operations. Going forward, preserving strong fundamentals, Yapı Kredi will continue to support the economy and its customers, while maintaining its focus on asset quality and healthy balance sheet structure.

I would hereby like to extend my thanks to all our customers and shareholders for their continuous support and trust, and our employees and their families for their devoted efforts.


Ali Y. Koç
Chairman of the Board

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