VakıfBank is the second largest bank in Turkey in terms of asset size, established with an initial capital of TL 50 million on January 11, 1954 and later started operating on April 13, 1954. Abdi Serdar Üstünsalih has been selected as the CEO of the Bank.[9]

Türkiye Vakıflar Bankası T.A.O.
TypeAnonim Şirket
FoundedApril 13, 1954 (1954-04-13)
Number of locations
936 Branches[1]
Area served
Key people
Mustafa Saydam (Chairman)[2]
Abdi Serdar Üstünsalih (CEO)[2]
ProductsFinancial Services, credit cards, consumer banking, corporate banking, investment banking, mortgage loans, private banking
RevenueIncrease ₺27.2 billion (2020)[3]
Increase ₺27.2 billion (2020)[4]
Increase ₺5.0 billion(2020)[5]
Total assetsIncrease ₺698.9 billion (2020)[6]
Total equityIncrease ₺46.5 billion (2020)[7]
Number of employees
16,748 (2020)[8]

VakıfBank has 936 branches,[10] 4,247 ATMs[10] and 448,731[11] units of POS that constitute its distribution channels as of December 31, 2020. VakıfBank has four international branches located in New York, Bahrain, Arbil, Qatar. In addition, VakıfBank operates in Austria with a subsidiary, VakıfBank International AG, which has branches in Vienna and Cologne.[12]


1950s to 1980sEdit

In 1956, after conducting extensive studies and surveys in the major economic centers across Turkey, VakıfBank continued its growth by opening an additional 10 branches. In 1957, VakıfBank made its first venture towards broadening its services with the establishment of Güneş Insurance. Over the next 20 years, VakıfBank continued to expand and widen its geographic presence in Turkey by opening new branches throughout Turkey, including in other important commercial and industrial regions. By 1977, VakıfBank had 206 branch offices.


During the 1980s, VakıfBank sought to keep pace with technological advances and placed special emphasis on improving its operations through investment in technology. VakıfBank improved automation and became fully integrated through a centralized mainframe computer system. In 1982, in an effort to conduct banking operations in a more dynamic manner and serve the particular needs of various regions, VakıfBank established regional directorates in Istanbul, the Aegean and the Çukurova regions.


In the early 1990s, VakıfBank increased the scope of its consumer lending and diversified its loan portfolio by broadening its lending practices to include equipment financing, enterprise loans, auto loans, housing loans as well as loans for marriage, vacation and education. It began to expand its credit card business by adopting principles of reputation credit and increasing its base of merchant customers, students and working class employees as well as by automating and centralizing its point of sale authorization system. VakıfBank also laid the groundwork to become a leader in alternative distribution channels by introducing self-service banking, telephone banking, and a mobile bank branch office – a full-service branch office on wheels Autobank. VakıfBank was the first in Turkey to offer payment services by credit card over the telephone. In 1993, VakıfBank obtained its first syndicated loan in an amount of US$ 38.5 million and established Vakıf Offshore in the Turkish Republic of Northern Cyprus.

In 1995, VakıfBank overhauled its management structure in order to modernize and conform with contemporary bank management practices. VakıfBank also established its New York branch in order to increase its exposure to international markets. The New York branch conducts international operations, including trade finance and corporate banking. In 1996, VakıfBank established Vakıf Gayrimenkul, a real estate investment trust, and Vakıf Risk Sermayesi Yatirim Ortakligi A.Ş., the first venture capital company in Turkey. In 1997, VakıfBank conducted its first securitization for US$ 130 million in relation to credit and debit card receivables.

In 1998, VakıfBank established its first home banking platform for customers with substantial business volume. VakıfBank also installed new computer systems to automate import and export transactions within the branch network for those branches conducting trade finance activities. VakıfBank became the first in Turkey to offer long-term home loans with maturities of up to 20 years. VakıfBank also introduced the VakıfBank Primary Schools program, a scheme designed to turn former branch offices into schools for homeless children.


In 2000, VakıfBank completed its first Eurobond issue for €200 million with a term of three years. In addition, VakıfBank’s subsidiaries, Güneş Insurance, Vakıf Financial Leasing, Vakıf Investment Trust Company, Vakıf Real Estate Investment Trust Company and Vakıf Venture Capital Company all offered their shares to the public and listed on the Istanbul Stock Exchange.

In 2001, VakıfBank also introduced internet banking with the launch of its internet site. VakıfBank had over 751,869 internet banking customers, an increase of almost 50% since 2003. In 2001, VakıfBank completed the first long-term borrowing following the Turkish economic crisis through the securitization of diversified payment rights for an amount of US$ 200 million and a term of five years. VakıfBank also became the first Turkish commercial bank to launch a syndicated loan facility following the economic crisis for an amount of US$ 110 million. Also in 2001, VakıfBank established a senior risk committee as well as a bank-wide risk committee, an internal control department and a new data processing center.

In 2002, VakıfBank had the largest number of credit cards issued in Turkey and ranked first in Europe in terms of the number of Maestro cards issued by a banking institution, according to Mastercard.

In 2003, VakıfBank continued its strategy to expand its customer base by effectively promoting both existing and new services to a larger segment of the population, including the upper middle class, middle-aged individuals with a steady source of income. VakıfBank borrowed US$ 200 million in a syndicated deal in which 36 banks participated, including 14 arrangers. In July 2005, VakıfBank increased this syndicated loan to US$ 750 million with 62 banks, including 34 arrangers. In September 2005, VakıfBank closed the 2005‑A Tranche of its new diversified payment rights securitization program which amounted to US$ 750 million. The securitization resulted in the sale of the diversified payment rights to the SPC. Also in 2005, VakıfBank and VakıfBank Pension Fund sold, respectively, 27,900 million and 4,300 million Class D common shares of VakıfBank in the IPO, representing 21.8% and 3.37%, respectively, of VakıfBank’s total shares.[13]

Since 2003, VakıfBank initiated the following projects: a marketing and sales oriented new branch organization to promote customer satisfaction; the Remote Access (EXAPI System) enabling VakıfBank’s customers to trade directly on the Istanbul Stock Exchange; the First Step Mutual Fund for parents wanting to invest for their children; and a branded credit card program for groups such as students, teachers and soldiers as well as the Supporter Credit Card for the fans of the three most popular football clubs in Turkey Super League.

In September 2004, VakıfBank mandated an international consultancy firm to review the financial and operational performance of VakıfBank. VakıfBank continues to improve operating efficiencies and overall performance through a number of initiatives including: organizational restructuring, including the reorganization of VakıfBank’s head office and the consolidation of certain business units to create increased operating efficiencies; increasing its focus on customers, including expanding its customer base, cross-selling to existing customers and improving customer service by utilizing both its extensive branch network as well as its continually expanding range of alternative distribution channels; remodeling nearly all of its existing branches and exploring opportunities for new branch openings, particularly in the Marmara region; focusing on sales at the branch level by shifting staff to sales functions; increasing its investment in human resources and optimizing personnel utilization; upgrading and overhauling the capacity and quality of its information technology systems, hardware and applications throughout both VakıfBank’s headquarters and its branch network; and developing its internal control functions, including the implementation of regional portfolio managers in its commercial banking operations and increasing responsibility at the branch level. VakıfBank intends to complete implementation of a majority of these initiatives during 2007.


The Bank is a full service commercial and retail bank with its headquarters in İstanbul, Turkey and is controlled by the Turkish Treasury, which (pursuant to Decree No. 696) on 11 December 2019 acquired shares in the Bank that had previously been held by various foundations managed by the GDF and (indirectly through the Turkey Wealth Fund) acquired newly issued shares of the Bank on 20 May 2020.[14] As of 31 December 2020, the Bank was the second largest Turkish bank in terms of assets,[10] third in terms of loans[15] and deposits[15] and fourth in terms of branch network[16] according to the BRSA and the Banks Association of Turkey. As of such date, the Bank provided retail, commercial and investment banking services through a network of 933 full service branches in Turkey distributed throughout 81 cities, including 135 branches in Ankara, 235 branches in İstanbul and 74 branches in İzmir. Internationally, the Bank has a subsidiary in each of Austria and the Turkish Republic of Northern Cyprus and a branch in each of New York City, Bahrain and in Erbil in the Republic of Iraq. In February 2019, the Bank obtained the approval of the BRSA to open representative offices in PRC and Qatar with the purpose of enhancing its international operations.[17] On February 2, 2021 VakıfBank Qatar Branch was approved to commence the regulated activities by Qatar Financial Centre Regulatory Authority.[18]

in BriefEdit

VakıfBank is one of the "multi-specialist" banks in Turkey. The modern banking products and services that it offers cover not only corporate, commercial and small-scale enterprise banking, but also the retail and private banking sectors. Being engaged in investment banking and capital market activities in addition to the basic banking products and services, VakıfBank offers the full range of financial products required in this era via state of the art technology including, but not limited to underwriting, financial leasing and factoring services, etc. by means of its financial participations.

In addition, the Bank offers its services through alternative distribution channels such as ATMs, a call centre and internet banking. VakıfBank has been reaching out its corporate and individual customers through alternative distribution channels such as ATMs, a call centre and internet banking as well as 936 branches spread throughout the country and undertaking a leading role in the financing of domestic and foreign trade. VakıfBank has four international offices located in New York and Bahrain, Arbil and Qatar. In addition, VakıfBank operates in Austria with a subsidiary, VakıfBank International AG, which has branches in Vienna and Cologne.

Ownership StructureEdit

Following the public offering in 2005, 74.76% share of the General Directorate of Foundations in the Bank decreased to 58.45% and 24.89% share of the VakıfBank Pension Fund decreased to 16.10% and the publicly traded shares constituted 25.18% of the Bank’s capital.[13]

As of December 11, 2019, 43.00% shares and 15.51% shares of General Directorate of Foundations representing Group (A) and Group (B), respectively (58.51% in total) have been transferred to the Ministry of Treasury and Finance as per the Presidential Decree dated December 3, 2019.[19]

As of May 20, 2020, the capital increase process of VakıfBank was completed with the sale of newly issued shares to Turkey Wealth Fund through private placement and without being offered to the public with a total sales proceeds amounting TL 7,000,000,000.[19] As a result of capital injection, VakıfBank’s paid-in capital of TL 2,500,000,000 was increased to TL 3,905,622,490. Thus, the current ownership structure of the Bank as follows: Republic of Turkey Ministry of Treasury and Finance: 37.45%; Turkey Wealth Fund: 35.99%; VakıfBank Pension Fund: 10.30%; other shareholders: 0.10% and free float: 16.15%.[19]


VakıfBank is managed by its board of directors and its general manager. The articles of association of VakıfBank provide for the Board to have nine members appointed for a term of three years, which appointments can be continued for multiple terms. Following the amendments made by Decree No. 696 to the Vakıfbank Law’s article regarding the formation of the Board, each of the Board members of the Bank is appointed by the General Assembly. Pursuant to the articles, three members of the Board are selected among candidates proposed by holders of a majority of the Bank’s Class A shares (one of which Board members is required to be independent), one member of the Board is selected among candidates proposed by holders of a majority of the Bank’s Class B shares, two members of the Board are selected among candidates proposed by holders of a majority of the Bank’s Class C shares (one of which Board members is required to be independent), one member of the Board is selected by the shareholders by taking into account the preferences of the holders of the Bank’s Class D shares (which Board member is required to be independent) and two remaining members of the Board are selected by the General Assembly among the candidates proposed by the shareholders.

VakıfBank's Board of Directors took the following decisions unanimously on March 26, 2021 regarding the distribution of duties among Board Members as per the Articles of Incorporation. Mr. Mustafa Saydam has been selected as the Chairman. Mr. Cemil Ragıp Ertem has been selected as the Deputy Chairman. Mr. Abdi Serdar Üstünsalih has been selected as the CEO.

Subsidiaries and AffiliatesEdit

VakıfBank has 10 subsidiaries which are Vakıf Faktoring A.Ş., Vakıf Finansal Kiralama A.Ş., Vakıf Gayrimenkul Yatırım Ortaklığı A.Ş., Vakıf Menkul Kıymet Yat. Ort. A.Ş., Vakıf Yatırım Menkul Değerler A.Ş., Vakıf Pazarlama San. ve Ticaret A.Ş., Taksim Otelcilik A.Ş., Vakıf Enerji ve Madencilik A.Ş., Vakıf Gayrimenkul Değerleme A.Ş. and VakıfBank International AG. Also VakıfBank has 15 affiliates operating in various sectors.

See alsoEdit


  1. ^ VakıfBank web-site, Unconsolidated Financial Statements at December 31, 2020 Financial (PDF).
  2. ^ a b VakıfBank web-site, Board of Directors and Statutory Auditors.
  3. ^ VakıfBank web-site, Unconsolidated Financial Statements at December 31, 2020 Financial (PDF).
  4. ^ VakıfBank web-site, Unconsolidated Financial Statements at December 31, 2020 Financial (PDF).
  5. ^ VakıfBank web-site, Unconsolidated Financial Statements at December 31, 2020 Financial (PDF).
  6. ^ VakıfBank web-site, Unconsolidated Financial Statements at December 31, 2020 Financial (PDF).
  7. ^ VakıfBank web-site, Unconsolidated Financial Statements at December 31, 2020 Financial (PDF).
  8. ^ VakıfBank web-site, Unconsolidated Financial Statements at December 31, 2020 Financial (PDF).
  9. ^ "VakıfBank web-site, Board of Directors and Statutory Auditors". (in Turkish).
  10. ^ a b c "VakıfBank web-site, Unconsolidated Financial Statements at December 31, 2020 Financial" (PDF).
  11. ^ "VakıfBank web-site, Base Prospectus of GMTN Programme".
  12. ^ "VakıfBank web-site, VakıfBank abroad".
  13. ^ a b "VakıfBank web-site, Annual Report 2005" (PDF).
  14. ^ "VakıfBank web-site, KAP".
  15. ^ a b "TBB, Quarterly Statistics by Banks (All periods), Share in Group and share in sector".
  16. ^ "TBB, Banks, Employees and Branches".
  17. ^ "Public Disclosure Platform".
  18. ^ "Public Disclosure Platform".
  19. ^ a b c "Ownership Structure". (in Turkish). Retrieved 2020-12-16.