TÜRKİYE VAKIFLAR BANKASI T.A.O.

Capital/Financing Update • Jun 24, 2025

Corporate Credit Rating

☐New ☒Update

Sector: Banking Publishing Date: 24.06.2025 Senior Analyst Ezgi Çiçek YILMAZ +90 212 352 56 73

ezgi.yilmaz@jcrer.com.tr Analyst

Büke BORA ERGİNBİLGİÇ +90 212 352 56 73 buke.bora@jcrer.com.tr

R A T I N G S		Long Term	Short Term
ICRs (Issuer Credit Rating Profile)	National ICR	AAA (tr)	J1+ (tr)
	National ICR Outlooks	Stable	Stable
	International FC ICR	BB	-
	International FC ICR Outlooks	Stable	-
	International LC ICR	BB	-
	International LC ICR Outlooks	Stable	-
ISRs (Issue Specific Rating Profile)	National ISR	-	-
	International FC ISR	-	-
	International LC ISR	-	-
Sovereign*	Foreign Currency	BB (Stable)	-
	Local Currency	BB (Stable)	-

* Assigned by JCR on May 10, 2024

**According to the Bank's calculations ***ROAA: Profit Before Tax/Total Assets (Avg.) ****ROAE: Profit Before Tax/Equity (Avg.)

Türkiye Vakıflar Bankası T.A.O.

JCR Eurasia Rating, has evaluated the consolidated structure of "Türkiye Vakıflar Bankası T.A.O." in the investment grade category with the highest credit quality, affirmed the Long-Term National Issuer Credit Rating at 'AAA (tr)' and the Short-Term National Issuer Credit Rating at 'J1+ (tr)' with 'Stable' outlooks. On the other hand, the Long-Term International Foreign and Local Currency Issuer Credit Ratings and outlooks were determined as 'BB/Stable', in line with the sovereign ratings and outlooks of Republic of Türkiye.

With a track record dating back to 1954, Türkiye Vakıflar Bankası T.A.O. (hereinafter referred to as 'VakıfBank', 'the Bank' or 'the Group') has consistently expanded its operations and provides the full spectrum of financial services including retail, corporate, commercial, SME, agricultural and private banking along with financial intermediation, factoring and leasing services through its financial subsidiaries. As an integrated financial services group, the Bank has 11 financial affiliates, 10 financial and 4 non-financial subsidiaries. The Bank has a wide geographical reach across Türkiye serving through a total of 971 branches in Türkiye, 5 overseas branches in New York-USA, Erbil-Iraq, Qatar, Bahrain, Dubai and 4,128 ATMs, as of March 31, 2025 (December 31, 2024: 959 branches in Türkiye, 4 overseas branches and 4,093 ATMs).

As of March 31, 2025, the share capital of VakıfBank is TRY 9.92bn, while the Group A-B shares belong to the Ministry of Treasury and Finance of the Republic of Türkiye and other appendant foundations, Group C shares belong to VakifBank Pension Fund and other individuals and legal entities, whilst Group D shares of the Türkiye Wealth Fund reached 74.79% and Group D listed shares accounted with a free-float rate of 6.36%.

Headquartered in Istanbul, the Bank was ranked 2 nd overall in the sector based on solo loan and deposit sizes and 2 nd based on solo asset size, as of March 31, 2025 (FYE2024: 2 nd and 2 nd , respectively), and the number of personnel employed amounted to 18,730 as of March 31, 2025 (FYE2024: 18,209).

Key rating drivers, as strengths and constraints, are provided below.

Strengths	Constraints
• Sustainable core profitability indicators,	• Capital adequacy ratios standing below the
despite declining NIM in the sector,	sector average, despite being compatible
• Low level of NPL ratio supporting asset	with the requirements,
quality in the analysed period, despite	• Structural maturity mismatch and short
accelerated NPL inflow in 4Q2024 and	term profile of deposits across the sector,
1Q2025,	• Sensitivity of operating environment in
• Reasonable liquidity figures supporting	Turkish Banking Sector considering
financial position,	macroeconomic and geopolitical risks.
• Broad-based deposit structure together with
diversified funding sources through access to
international financing resources,
• Solid and efficient branch network along
with well-diversified loan portfolio
underpinning market position and influence,
• Systemically important bank along with the
integrated financial services via subsidiaries
and affiliates,
• Competitive advantages in domestic market
via strong shareholder structure and long
operating history,

Considering the aforementioned factors, the Bank's Long-Term National Rating has been affirmed at 'AAA (tr)'. Earnings power and solid market position, low NPL ratio despite increase in 1Q2025 and strong shareholder structure as well as decreasing standard capital adequacy ratio in 1Q2025 have been evaluated as important indicators for the stability of the ratings and the outlooks for Long and Short-Term National Issuer Credit Ratings are determined as 'Stable'. Global macroeconomic environment and the impact of the decisions taken by the regulatory authorities on the sector will be closely monitored by JCR Eurasia Rating in the upcoming periods. The macroeconomic indicators at national and international markets, as well as market conditions and legal framework about the sector will be monitored as well.

Copyright © 2007 by JCR Eurasia Rating. Maslak Mahallesi Taşyoncası Sokak No:1/F F2 Blok Kat:2 34485 Sarıyer/İstanbul/Türkiye Telephone: +90(212)352.56.73 Fax: +90 (212) 352.56.75 Reproduction is prohibited except by permission. All rights reserved. All information has been obtained from sources JCR Eurasia Rating believes to be reliable and information/clarifications provided by the Group. However, JCR Eurasia Rating does not guarantee the truth, accuracy and adequacy of this information. JCR Eurasia Rating ratings are objective and independent opinions as to the creditworthiness of a security and issuer and not to be considered a recommendation to buy, hold or sell any security or to issue a loan. This rating report has been composed within the methodologies registered with and certified by the SPK (CMB-Capital Markets Board of Türkiye), BDDK (BRSA-Banking Regulation and Supervision Agency) and internationally accepted rating principles and guidelines but is not covered by NRSRO regulations. http://www.jcrer.com.tr

• High level of compliance in corporate governance practices and sustainability.