VakifBank
Encyclopedia
VakıfBank is the fifth (5th) largest bank
in Turkey
with its $46 billion in assets as of December 31, 2009. The company offers some of the largest services in Turkey, and operates 610 branches domestically. VakifBank has two international offices located in New York
and Bahrain
and it also has participation in Austria
named VakifBank International AG which has branches in Vienna
, Cologne
and Frankfurt
.
VakıfBank was founded on April 13, 1954 under the special law Türkiye Vakıflar Bankası Türk Anonim Ortaklığı Kanunu. VakıfBank’s initial purpose was the management of the cash revenues and expenditures of the charitable foundations set up during the Ottoman Empire
period. VakıfBank was established in Ankara
and quickly began conducting banking activities with branch offices in Istanbul
, Ankara
and İzmir
.
, VakıfBank continued its growth by opening an additional 10 branches. In 1957, VakıfBank made its first venture towards broadening its services with the establishment of Güneş Insurance. Over the next 20 years, VakıfBank continued to expand and widen its geographic presence in Turkey
by opening new branches throughout Turkey
, including in other important commercial and industrial regions. By 1977, VakıfBank had 206 branch offices.
, the Aegean and the Çukurova
regions.
business by adopting principles of reputation credit and increasing its base of merchant customers, students and working class employees as well as by automating and centralizing its point of sale authorization system. VakıfBank also laid the groundwork to become a leader in alternative distribution channels by introducing self-service banking, telephone banking, and a mobile bank branch office — a full service branch office on wheels Autobank. VakıfBank was the first in Turkey
to offer payment services by credit card
over the telephone. In 1993, VakıfBank obtained its first syndicated loan in an amount of US$ 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 VakifBank Primary Schools program, a scheme designed to turn former branch offices into schools for homeless children.
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 currently has 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.
Since 2003, VakıfBank has 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
.
;
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 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.
VakıfBank has been reaching out its corporate and individual customers in a most efficient manner through its internet branches, telephone banking branch, 2.220 ATM
’s and 87.581 units of POS
that constitute its alternative distribution channels as well as 610 branches spread throughout the country and undertaking a leading role in the financing of domestic and foreign trade. VakifBank has two international offices located in New York and Bahrain and it also has participation in Austria
named VakifBank International AG which has branches in Vienna
, Cologne
and Frankfurt
.
.
, representing 21.8% and 3.37%, respectively, of VakıfBank’s total shares. Following the IPO
, the GDF’s equity interest in VakıfBank was reduced from 74.75% to 58.45% of VakıfBank’s shares.
Pursuant to VakifBank’s articles of association, the Class A shareholders, Class B shareholders and Class C shareholders are entitled, respectively, to five, one and three representatives in the Board of Directors. Class D shareholders do not have direct board representation. In addition to the Board member appointed by the Prime Minister, three representatives of the Class A shareholders are currently nominated by GDF as the only Class A shareholder. The remaining representative of the Class A shareholders in the Board of Directors is an independent member elected by the General Assembly.
As the majority Class B shareholder, GDF further currently may appoint the representative of the Class B shareholders in the Board of Directors. The decision regarding the Board members to be appointed by GDF is taken at a meeting of the Board of Directors of GDF, which is in turn composed of members appointed by the government. Two of the three representatives of the Class C shareholders in the Board of Directors are nominated by the majority of the Class C shareholders, currently VakifBank Pension Fund, while the other representative is an independent member elected by the General Assembly. The independent director shall be elected by the General Assembly from amongst the candidates nominated by the shareholders, however in nominating this candidate, choices of Class D Shareholders shall be given priority. Current board members were appointed by the general assembly dated March 31, 2006 and will remain as such until March 31, 2009, unless they are removed earlier by such general assembly.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
in Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
with its $46 billion in assets as of December 31, 2009. The company offers some of the largest services in Turkey, and operates 610 branches domestically. VakifBank has two international offices located in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
and it also has participation in Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
named VakifBank International AG which has branches in Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, Cologne
Cologne
Cologne is Germany's fourth-largest city , and is the largest city both in the Germany Federal State of North Rhine-Westphalia and within the Rhine-Ruhr Metropolitan Area, one of the major European metropolitan areas with more than ten million inhabitants.Cologne is located on both sides of the...
and Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
.
VakıfBank was founded on April 13, 1954 under the special law Türkiye Vakıflar Bankası Türk Anonim Ortaklığı Kanunu. VakıfBank’s initial purpose was the management of the cash revenues and expenditures of the charitable foundations set up during the Ottoman Empire
Ottoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...
period. VakıfBank was established in Ankara
Ankara
Ankara is the capital of Turkey and the country's second largest city after Istanbul. The city has a mean elevation of , and as of 2010 the metropolitan area in the entire Ankara Province had a population of 4.4 million....
and quickly began conducting banking activities with branch offices in Istanbul
Istanbul
Istanbul , historically known as Byzantium and Constantinople , is the largest city of Turkey. Istanbul metropolitan province had 13.26 million people living in it as of December, 2010, which is 18% of Turkey's population and the 3rd largest metropolitan area in Europe after London and...
, Ankara
Ankara
Ankara is the capital of Turkey and the country's second largest city after Istanbul. The city has a mean elevation of , and as of 2010 the metropolitan area in the entire Ankara Province had a population of 4.4 million....
and İzmir
Izmir
Izmir is a large metropolis in the western extremity of Anatolia. The metropolitan area in the entire Izmir Province had a population of 3.35 million as of 2010, making the city third most populous in Turkey...
.
1950s to 1980s
In 1956, after conducting extensive studies and surveys in the major economic centers across TurkeyTurkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
, 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
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
by opening new branches throughout Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
, including in other important commercial and industrial regions. By 1977, VakıfBank had 206 branch offices.
1980s
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 IstanbulIstanbul
Istanbul , historically known as Byzantium and Constantinople , is the largest city of Turkey. Istanbul metropolitan province had 13.26 million people living in it as of December, 2010, which is 18% of Turkey's population and the 3rd largest metropolitan area in Europe after London and...
, the Aegean and the Çukurova
Çukurova
Çukurova , historically known as Cilicia, is a geographic, economic and cultural region in south-central Turkey, covering the provinces of Mersin, Adana, Osmaniye and Hatay...
regions.
1990s
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 cardCredit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
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
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
to offer payment services by credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
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
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
branch in order to increase its exposure to international markets
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
. The New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
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
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
. 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 VakifBank Primary Schools program, a scheme designed to turn former branch offices into schools for homeless children.
2000s
In 2000, VakıfBank completed its first EurobondEurobond
A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued. It can be categorised according to the currency in which it is issued. London is one of the centers of the Eurobond market, but Eurobonds may be traded throughout the world - for...
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
Istanbul Stock Exchange
The Istanbul Stock Exchange is the only corporation in Turkey for securities exchange established to provide trading in equities, bonds and bills, revenue-sharing certificates, private sector bonds, foreign securities and real estate certificates as well as international securities. The ISE was...
.
In 2001, VakıfBank also introduced internet banking with the launch of its internet site. VakıfBank currently has 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
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
and ranked first in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
in terms of the number of Maestro cards
Maestro (debit card)
Maestro is a multi-national debit card service owned by MasterCard, and was founded in 1990. Maestro cards are obtained from associate banks and can be linked to the card holder's current account, or they can be prepaid cards...
issued by a banking institution, according to MasterCard
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
.
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
Segregated portfolio company
A segregated portfolio company , sometimes referred to as a protected cell company, is a company which segregates the assets and liabilities of different classes of shares from each other and from the general assets of the SPC.Segregated portfolio assets comprise assets representing share capital,...
. 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
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
, representing 21.8% and 3.37%, respectively, of VakıfBank’s total shares.
Since 2003, VakıfBank has 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
Turkcell Super League
The Süper Lig is a Turkish professional league for association football clubs. It is the top-flight of the Turkish football league system. It is one of the top leagues in the UEFA confederation and the winner of the competition automatically qualifies for the UEFA Champions League...
.
Present
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 regionSea of Marmara
The Sea of Marmara , also known as the Sea of Marmora or the Marmara Sea, and in the context of classical antiquity as the Propontis , is the inland sea that connects the Black Sea to the Aegean Sea, thus separating Turkey's Asian and European parts. The Bosphorus strait connects it to the Black...
;
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.
in Brief
VakıfBank is one of the leading "multi-specialist" banks in TurkeyTurkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
. 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.
VakıfBank has been reaching out its corporate and individual customers in a most efficient manner through its internet branches, telephone banking branch, 2.220 ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
’s and 87.581 units of POS
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
that constitute its alternative distribution channels as well as 610 branches spread throughout the country and undertaking a leading role in the financing of domestic and foreign trade. VakifBank has two international offices located in New York and Bahrain and it also has participation in Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
named VakifBank International AG which has branches in Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, Cologne
Cologne
Cologne is Germany's fourth-largest city , and is the largest city both in the Germany Federal State of North Rhine-Westphalia and within the Rhine-Ruhr Metropolitan Area, one of the major European metropolitan areas with more than ten million inhabitants.Cologne is located on both sides of the...
and Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
.
Mission
The mission of VakıfBank is to take modern banking forward through new leaps, considering people and information as its most significant capital in parallel with a social banking understanding based on the principle of firstly supporting the customers under all economic circumstances with its widespread branch network, wide range of products and service quality.Vision
Through its products and services as well as its trustworthiness Vakifbank deliver, the vision of Vakifbank is to be the leader bank of TurkeyTurkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
.
Targets
- To increase its market share through creating difference with its Restructuring Program;
- To ensure healthy growth and progress;
- To ensure unconditional customer satisfaction;
- To follow a widespread and diversified deposit policy;
- To develop and implement new products and services;
- To increase non-interest income;
- To decrease operating costs;
- To ensure the continual improvement and motivation of its personnel constituting its most powerful capital in achieving all of these targets.
Ownership Structure
As of March 31, 2007, the share capital of VakıfBank was YTL 2,500 million consisting of 250,000,000,000 shares, each share with a nominal value of YTL 0.01. VakıfBank is controlled by over 40,000 charitable foundations managed by the Turkish Prime Ministry’s General Directorate of Foundations (the GDF). On November, 2005, VakıfBank and VakıfBank Pension Fund sold, respectively, 27,900,000,000 and 4,300,000,000 Class D common shares of VakıfBank in the IPOInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
, representing 21.8% and 3.37%, respectively, of VakıfBank’s total shares. Following the IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
, the GDF’s equity interest in VakıfBank was reduced from 74.75% to 58.45% of VakıfBank’s shares.
Management
VakifBank is managed by its Board of Directors and its General Manager. The articles of association of VakifBank provide for the Board of Directors to have nine members appointed for a term of three years. Pursuant to recent changes made by Law No. 5387, the breakdown of the Board of Directors of VakifBank is determined according to its articles of association, except that one member of the Board (who is also the General Manager of VakifBank) is appointed by the Prime Minister to represent the GDF.Pursuant to VakifBank’s articles of association, the Class A shareholders, Class B shareholders and Class C shareholders are entitled, respectively, to five, one and three representatives in the Board of Directors. Class D shareholders do not have direct board representation. In addition to the Board member appointed by the Prime Minister, three representatives of the Class A shareholders are currently nominated by GDF as the only Class A shareholder. The remaining representative of the Class A shareholders in the Board of Directors is an independent member elected by the General Assembly.
As the majority Class B shareholder, GDF further currently may appoint the representative of the Class B shareholders in the Board of Directors. The decision regarding the Board members to be appointed by GDF is taken at a meeting of the Board of Directors of GDF, which is in turn composed of members appointed by the government. Two of the three representatives of the Class C shareholders in the Board of Directors are nominated by the majority of the Class C shareholders, currently VakifBank Pension Fund, while the other representative is an independent member elected by the General Assembly. The independent director shall be elected by the General Assembly from amongst the candidates nominated by the shareholders, however in nominating this candidate, choices of Class D Shareholders shall be given priority. Current board members were appointed by the general assembly dated March 31, 2006 and will remain as such until March 31, 2009, unless they are removed earlier by such general assembly.
Subsidiaries
The Bank conducts its operations both domestically and internationally, through its branches and through its subsidiaries and affiliate companies. The following are VakifBank’s principal subsidiaries and affiliates (with ownership percentages expressed in this section reflecting ownership by members of VakifBank’s group):- VakifBank International Wien AG.
- Vakif Emeklilik A.S.
- Vakif Finansal Kiralama A.S.
- Vakif Deniz Finansal Kiralama A.S.
- Günes Sigorta A.S.
- Vakif Finans Faktoring Hizmetleri A.S.
- World Vakif Offshore Banking Ltd.
- Turkiye Sınai Kalkınma Bankasi
- Vakıf Portfolio Management
- Vakif Investment Corporation