Message from the Chairman

Turkish Economy has progressed with its strong recovery in the third quarter of the year despite the ongoing challenges stemming from the COVID-19 pandemic, geopolitical tensions and the recent fluctuations in the international markets. With the utmost attention demonstrated by the Central Bank, Banking Regulator (BRSA), State Treasury and the government to closely monitor the course of the pandemic, Turkey has continued its growing economic activity while gradually offsetting the effects caused by the COVID-19 outbreak that emerged at the beginning of 2020.

Turkish public authorities together with the Turkish private sector, has been striving to preserve and advance Turkey’s economy, wellbeing and welfare in these difficult times that bear serious international and geopolitical developments. The banking regulator has continued to implement the relief on banking requirements alongside the government’s new Credit Guarantee Funding scheme while assuring trust to the international markets with the New Economic Programme. Having taken all the necessary actions to contribute to this endeavour, Turkish banks, continued their uninterrupted operations and provided aid to their customers in times of need.

Going through these challenging times, health and safety continues to be the first and foremost for Yapı Kredi, as well as the contribution to the Turkish Economy and the Turkish Banking Sector.

In the first nine months of the year, total loans in the banking sector reached TL 3,346 billion indicating 31.1% year-to-date growth. During the same period, total deposits reached TL 3,250 billion, indicating 31.6% year-to-date growth. Accordingly, sector’s loan to deposit ratio came down 3 percentage points year-over-year reaching to 103% in the third quarter of 2020. With the revisions in classification rules, the banking sector’s non-performing loan ratio improved by 114 basis points year-to-date to 4.1%.

Having successfully rolled over its syndication of USD 870 million, together with a USD 100 million bilateral loan financing from EBRD in May 2020, Yapı Kredi continued with its successful external borrowing plan during the third quarter of 2020 with further diversification in sustainable and innovative portfolios.

Despite the difficulties and uncertainties that we are going through, Yapı Kredi will continue to support the economy and its customers, while preserving its solid fundamentals with special focus on asset quality and a healthy balance sheet.

I would hereby like to extend my thanks to all our customers and shareholders for their continuous support and trust, and our employees for their devoted efforts especially during these hard times.


Y. Ali Koç
Chairman of the Board

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