Türkiye Halk Bankasi : Annual Report

years

Integrated Annual Report 2022

So much we can do for

our country

Contents

01	ABOUT THE REPORT	118 INTELLECTUAL CAPITAL
14	ASSESSMENT OF THE MANAGEMENT	120	Internet Banking and Mobile Banking
122	Digital Halkbank for SMEs, Tradesmen and Artisans
14	Chairman's Assessment	124	Cash Management Transformation
16	General Manager's Assessment	125	Branches on the Journey to Digital Transformation
18	ABOUT HALKBANK	126	Robotic Process Automation Initiatives
128 PRODUCED CAPITAL
18	Halkbank in Figures
20	Corporate Profile	130	Branches and ATMs
21	Halkbank's Vision, Mission and Corporate Values	132 NATURAL CAPITAL
22	Halkbank in Brief
23	Halkbank's Position in the Sector	134	Responsible Products and Services Approach
24	Key Financial Indicators and Ratios	136	Supporting the Fight Against Climate Crisis
26	Board of Directors and Supervisory Board	142 CORPORATE GOVERNANCE
28	Executive Management
30	Organizational Chart	142	Report of the Board of Directors
32	Shareholding Structure and Shareholder Portfolio	143	Annual Report Compliance Statement

About the Report

About the Report

The Integrated Annual Report entails Halkbank's economic, social and environmental performance between January 1 and December 31, 2022.

38	Halkbank's Historical Development	144	Audit Committee's Assessment on the Operation of the
42	Awards in 2022		Internal Control, Compliance, Internal Audit and Risk
46	AREAS OF FOCUS IN 2022		Management Systems and Information about its Activities in
	2022
48	Women Entrepreneurs	149	Executives of the Internal Systems Units
50	Digitalization	150	Risk Management Policies by Risk Types and Risk
52	Creating Value for the Local Economy		Management Information
54	Supporting the Fight Against Climate Change	152	Rating Notes
56	HALKBANK'S MODEL FOR CREATING VALUE	153	Board of Directors and Committees
161	Information on Support Services Providers
56	Model for Creating Value	162	Transactions with the Risk Group
60	HALKBANK'S SUSTAINABILITY STRUCTURE	162	Amendments to the Articles of Association in 2022
163	Profit Distribution Policy
60	Halkbank's Sustainability Organizational Structure and	164	Corporate Governance Principles
	Approach	180	Other Issues Within the Scope of Corporate Governance
62	Halkbank's Priorities in Sustainability		Principles
64	Our Sustainable Development Goals	182	Sustainability Principles Compliance Frame
66	FINANCIAL CAPITAL	190	Report of the Supervisory Board
192 FINANCIAL INFORMATION
70	Sustainable Finance
74	Corporate and Commercial Banking	192	Financial Standing, Profitability and Debt-Servicing Capability
76	SME-Artisans Banking	194	5-Year Summary Financial Information
84	Retail Banking	195	Unconsolidated Financial Statements and Independent Audit
86	Deposit Management		Report
88	Treasury Management and International Banking	333	Consolidated Financial Statements and Independent Audit
90	HUMAN CAPITAL		Report
477 ANNEXES
92	Halkbank's Identity as an Inclusive Employer
96	Career at Halkbank	477	Performance Tables
98	Employee Engagement and Internal Communication	480	Reporting Guidance
99	Training at Halkbank	488	GRI Content Index
102	Occupational Health and Safety	495	Independent Assurance Report
104 SOCIAL AND RELATIONAL CAPITAL	498 DIRECTORY
106	Stakeholder Relations at Halkbank

1. Social Benefit-Focused Finance Approach

1. Corporate Social Responsibility Activities

Türkiye Halk Bankası Anonim Şirketi (Halkbank) presents the results of its operations in 2022, its financial and non-financial performance, and its forward-looking objectives to its stakeholders in its second Integrated Annual Report that was prepared in accordance with the Integrated Reporting ( Framework) of the Value Reporting Foundation (VRF) and the GRI 2021 Standards Fundamental option which was revised and published by the Global Reporting Initiative (GRI).

The Integrated Annual Report entails Halkbank's economic, social and environmental performance as part of its operations performed in accordance with a sustainable development perspective between January 1 and December 31, 2022. Having embraced the Sustainable Development Goals issued by the United Nations, Halkbank associated its priority areas with the value it created. In this second Integrated Annual Report published by the Bank, Halkbank presents its corporate governance approach, sustainability approach, and areas of business to the readers at the level of capital elements.

The primary indicators presented in the report have been audited by an independent entity. The details of the audit can be found in the "Independent Assurance Report" in the Annexes section of the report.

GRI 2-1,2-2,2-3

1

We hold our values

in high regard

We have been striving to increase national prosperity and develop the economy for 85 years while holding national values in high regard. We continuously support SMEs, tradesmen and artisans, and entrepreneurial women and young people. We target new investments by offering various services and opportunities to exporter enterprises.

Our goal is to witness a Türkiye that entails promising ventures and a new economy model in the new century of the Republic... As Halkbank, we celebrate the 100th anniversary of our Republic with our love for our work and our heartfelt commitment to Türkiye.

Thanks to our deep-rooted history, no other bank knows the needs of Turkish SMEs, tradesmen and artisans better than us. Our "SME Support Packages" offer support to all segments that engage in production and contribute to Türkiye's development. We are proud to stand behind the real sector in meeting all of their requirements, from cash loan needs to banking services, and to be Türkiye's leading bank in lending to SMEs.

Lending a helping

hand to production

Conducting "Producing Women Summits" in an effort to strengthen women entrepreneurs, we pay attention to what they have to say and identify their needs during their progression. We partner with women entrepreneurs in regional development through growing employment opportunities in parallel with proliferating women's cooperatives. Meeting all needs of the cooperatives, we contribute to the proliferation of women entrepreneurs as well as their branding and empowerment through our "Producing Women's Academy."

Standing together with our women

to boost employment