Dividend Distribution Policy of the Bank

Principles regarding the Bank’s dividend distribution are set out in detail in the Bank’s Articles of Association. In this respect, shareholders taking into consideration the Bank’s growth targets as well as its financing requirements and the opinion of the Banking Regulation and Supervision Agency (BRSA) are authorized to pass resolutions on whether the dividend distribution shall be in cash or in the form of a capital increase, whereupon bonus shares will be issued to shareholders, or if part of the distribution shall be in the form of cash and part in the form of a capital increase. In the Annual General Meeting, in accordance with the Articles of Association, shareholders may make the decision to transfer a portion or all of the distributable profit to retained earnings or extraordinary reserves.

It is envisaged that the Bank’s dividend distribution policy will be set out in a manner to ensure the realization of long-term growth plans. This policy is subject to revision by the Board of Directors whenever necessary, taking into consideration the domestic and international economic conditions and the projects and funds on the agenda.

Proposal from the Board of Directors for the Distribution of Profit

The Board of Directors of the Bank decided that

  • a legal reserve fund of TL 142,836,451 shall be set aside from the remaining net period profit of TL 5,844,141,821, in accordance with Article 519/1 of the Turkish Commercial Code, after deducting taxes and legal liabilities amounting to TL 1,799,133,930 from the 2023 period profit of TL 7,643,275,751,
  • From the amount remaining after the allocation of the First Legal Reserve Fund, TL 1,869,748 shall be allocated as a special fund to invest in venture capital funds in order to benefit from the corporate tax R&D deduction in accordance with the Law No. 5746 on the Support of Research, Development and Design Activities.
  • The remaining TL 5,699,435,622 shall be allocated as extraordinary reserve fund.

This decision will be submitted to the approval of the shareholders at the 33rd Ordinary General Assembly.