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Yapi Kredi released 2001 year-end results

As a result of the special audit process and the evaluations made by Banking Regulatory and Supervisory Agency (BRSA), our Bank's capital adequacy ratio according to inflation adjusted unconsolidated financial statements as of December 31,2001 has been computed as 10.21%.

The report published by BRSA on June 21, 2002 states that "in the computation of the capital adequacy ratio, group lending has been evaluated in a prudent manner and the reserves deemed necessary have been provided. If the outcome of the talks with the majority shareholders is positive, such reserves might be reversed resulting in a higher capital adequacy ratio."

Despite the reserves provided in a conservative approach for the loan portfolio, the Bank's shareholders' equity in its unconsolidated financial statements totaled approximately TL 1.5 quadrillion (US$ 1.1 billion).

The above mentioned provisions and the foreign exchange losses due to the volatility in exchange rates in 2001 resulted in a loss of TL 896 trillion (US$ 622 million) for the year 2001. In spite of the deep economic contraction, banking fees and commissions increased by 38% in real terms. As a result of the operational efficiency achieved through the centralization of operations and further synergies, operational costs decreased by 10% in real terms.

As a result of the confidence towards our Bank, our high service quality and strong alternative distribution channel network, deposits increased by 34% in real terms in 2001 and reached TL 11.7 quadrillion (US$ 8.1 billion). Total assets amounted to TL 15.5 quadrillion (US$ 10.7 billion) at the end of 2001.

With its 4.5 million active customers, its 3.5 million credit cards with 27% market share in business volume, its annual fee and commission income base exceeding USD 350 million and its strong equity base, our Bank is continuing operations without interruption.

Our Bank will continue its pioneering mission in the sector, as it did during 58 years of its history.

Yapı Kredi / 24 Jun 2002

 
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