Turkiye Vakiflar Bankasi T A O : In the first quarter of 2018, VakıfBank delivered the highest lending growth in the sector

PRESS RELEASE

21.05.2018

In the first quarter of 2018, VakıfBankdelivered the highest lending growth in the sector

VakıfBank's asset size, having an uninterruptedly support to national economy for 64 years, reached approximately TL 282 billion with the increases of28% annually. VakıfBank's supportto the economy through cash and non-cash loans reached TL 250 billion.VakıfBank's lendinggrowth outpaced Tier I Banks in the first quarter of 2018 by having the highest lending growth.

With 957 branches in all over the country,VakıfBankcontinued to be the strength by all segments of our society through gaining stronger gradually in digital banking channels.

VakıfBank's total deposits reached TL 162 billion with an increase of 25% annually.

CEO Mr.Özcan said "We became one of the leading bank in making contribution to the economy in the first quarter of 2018 once again."

VakıfBankdelivered TL 1 billion 51 million unconsolidated net income by setting aside TL 248 million tax provisions from its TL 1 billion 300 million gross income in the first quarter of the year.

Assessing VakıfBank's financial performance in the first quarter of the year, the CEO of VakıfBank Mr. Mehmet Emin Özcan said "We successfully continued to provide sustainable growth and to make contribution to the economy despite of compelling circumstances in global markets. Our total cash-loans exceed TL 195 billion with an increase of 6.8%, while our non-cash loans reached TL 55 billion with an increase 8.8% annually.Therefore, VakıfBank realized the highest lendinggrowth among either state banks or private Tier I Banks in the first quarter of the year. These growth rates show clearly that we did not hesitate to take responsibility in the first quarter of 2018 as we did last year and we became one of the leading bank in making contribution to the economy.

"Market share gaining in all key balance sheet items was on track."

Indicating that as a corollaryof this circumstances, VakıfBank continued to gain market share inevery segment, CEO Mr.Özcan said"With our strong equity, robust liquidity structure and well-managed assets/liabilities balance, our presence in the markets are becoming more visible day by day as a strength by our economy."TheBank's market share for total loansincreased to 8.9% from 8.4%, while the market share of TL loans increased to 9.4% from 8.6% compared to the sameperiod of the previous year and the total deposits increased to 9.1% from 8.6% while the Bank'sTL deposits increased to 11% from 10.5% compared to the same period of the prior year. With respect to our customer-oriented banking approach, we will continue to improve both speed and quality of services provided to our all segments customer as retail, SME, corporate and commercial through especially investments we made on digital banking."

"VakıfBankobtained USD 1.8 billion international borrowing in the first quarter of the year."

Indicating that VakıfBank continued toprovide long term and cost effective international funding sources, stated that"In January, VakıfBank issued a new Eurobond amounting USD 650 million with a maturity of 5 years under the Global Medium Term Notes (GMTN) Programme. In February,VakıfBank issued a new covered bond amounting TL 1 billion with a maturity of 5 years under theMortgage Covered Bond Programme. Therefore,VakıfBank have obtained USD 1.8 billion international borrowing in the first quarter of the year.Following these issuances, VakıfBank signed the largest syndication loan facility of the Bank's history amounting USD 1.3 billion in April. VakıfBank obtained newsource of USD 380 million with 5 year maturity within the securitization program in May. Despite of the compelling circumstances in global markets, we will continue to be the strength by our economy and to obtain long term and cost effective international fundingsources."

Significant financial indicators of unconsolidated balance sheet of VakıfBank dated March 31,2018:

Net Income Before Tax	TL 1,300 million
Net Income	TL 1,051.4 million
Total Assets	TL 281,984.8 million
Total Cash and Non-cash Loans	TL 250,612.1 million
Cash Loans	TL 195,400.7 million
Non-cash Loans	TL 55,211.4 million
Total Deposits	TL 162,054.4 million
Equity	TL 24,999.1 million
Securities Issued	TL 24,740.9 million
Funds Borrowed	TL 31,136.4 million