Assessment of Financial Position, Profitability and Solvency

(*) Loans Amount includes Non-Performing Funds and Financial Leasing.

ASSET QUALITY AND PROFITABILITY

At the end of December 2023, our Bank commanded TL 240 billion of assets, an increase of 57% when compared to the end of the previous year. Funds allocated accounted for 51% of the total assets at the end of 2023.

Our Bank’s pre-tax profit amounted to TL 7,643 million, while its net profit for the period stood at TL 5,844 million, an increase of 101% YoY. Our bank continued to strengthen its equity with the profitability it maintains. Our Bank’s effective practices to increase asset quality and well-managed cost structure supported sustainability of our profitability.

FUNDS COLLECTED AND SHAREHOLDERS’ EQUITY

Collected funds remained the most important source of funding for the Bank in 2023. Collected funds stood at TL 177 billion, a 72% YoY increase in 2023, representing a 74% share of the total balance sheet, with 56% of this amount consisting of TL accounts and 44% of foreign currency accounts. In addition, participation accounts totaled TL 120 billion, marking an increase of 101%. During the year our Bank successfully diversified its funding structure. The Bank’s domestic lease certificate issuances reached TL 9.2 billion Moreover, the previous year’s profits were kept within the Bank and our equity amounted to TL 20 billion, with increased profitability.

The Bank’s Capital Adequacy Standard Ratio stood at 25.85% at the end of 2023. The Bank’s current subordinated loans serve to balance any negative impact of exchange rate movements on the Bank’s legal equity and, as a result, our Bank is able to maintain its capital adequacy ratio at a relatively strong level.

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