Promotion activities in the banking sector and reflection of promotion expenditures to financial statements: The case of Vakıfbank

In this study, service marketing promotion methods and banking financial statements analysis are handled together for banking sector. The aim of this study is making analysis of how financial statements are affected by promotion activities and promotion expenses on banking sector as an example of Vakıfbank. According to this, there are two goals of this study. First one is: determining promotion activities that are included in 2009-2018 annual activity reports of Vakıfbank. Second one is: making analysis of how can promotion expenses are handled in financial statements of 2009-2018 annual activity reports of Vakıfbank. In this context; Advertising Expenses, Total Interest Expenses, Total Interest Income, Net Interest Income, Net Profit for the Period, Net Operating Profit items' relationship and its change by years is investigated. In this study, secondary datas that are get from financial statements of 2009-2018 annual activity reports of Vakıfbank, are evaluated by correlation and trends analysis. As a result of the research, Vakıfbank uses "personal sales, advertisement, public relations,sales development" methods for marketing communication process. Vakıfbank especially gives more importance to "institutional social responsibility, sponsorship" activities as a public relations tool. Despite that all different expenses about promotion activities are presented below "advertising expenses" headline on financial statements of Vakıfbank. It is found that there is a strong, positive and meaningful relation between advertisement expenses and total interest expense, net interest income, net operating profit. It is also found that advertisement expenses have a increasing trends. Last of all, making detailed analysis of "promotion expenses" is very important for "promotion mix optimization of banking services". Keywords : Banking Sector, Promotion Methods, Promotion Expenses, Financial Statements, Vakıfbank