CORPORATE PRESENTATION · $9 bn market capitalization most valuable company & most traded bank 27.6% dividend pay-out ratio highest dividend payment** 49.85% $94 bn total assets #

INVESTOR RELATIONS July 2018

CORPORATE

PRESENTATION

INVESTOR RELATIONS CORPORATE PRESENTATION

CANLI YAYIN EKRANI

2

ENVIRONMENT WE OPERATE IN

OUR VALUE CREATION

MARKET POSITION & 2018 PROJECTIONS

ABOUT GARANTI


CANLI YAYIN EKRANI


OUR VALUE CREATION

ABOUT GARANTI

3



CANLI YAYIN EKRANI

GLOBAL ECONOMIES

8

10

14

23

32

33

79

85

86

97

Sekerbank*

Odeabank*

ING

TEB

DenizBank

QNB FinansBank

Yapi Kredi

Akbank

Garanti

Isbank

Top 10 Private Commercial Banks by Asset Size ($bn)

$46

$35

$94

Jan.18

L-T External DebtStock (maturingafter 1 year)

S-T portion of L-TExternal Debt

S-T ExternalDebt Stock

47% of Banks’

External Debt

matures within a year

47% of Private Banks’

External Debt


Short-term Long-term

4

Positive growth momentum in global economies..

…but with differentiation across countries. Growth has accelerated in 2Q18

in US and remained steady in China, while weaker-than-expected 1Q18

Eurozone growth poses a downward bias to 2018.

Monetary policy normalization

In June, FOMC increased the target range for the federal funds to 2.0% and the

median projections of the FOMC for year-end 2018 increased to two rate

increases from one previously.

ECB announded that QE will end in December 2018. However, interest rates will

remain on hold at least until the summer 2019, later than expected.

Increased caution in financial markets

Stronger USD with rising US rates triggered a sudden reassessment of

EM. EM FX sell-off was driven by global factors though idiosyncratic

factors have intensified movements


CANLI YAYIN EKRANI

5

8.5%

5.2% 6.1%

3.2%

7.4%

3.8%

2013 2014 2015 2016 2017 2018E

GROWTH

INFLATION

7.4% 8.2% 8.8% 8.5%

11.9% 14.0

2013 2014 2015 2016 2017 2018E

AVG. CBRT FUNDING COST

5.8% 8.9% 8.4% 8.4% 11.5%

16.3

2013 2014 2015 2016 2017 2018E

%

17th largest economy in the world1

Attractive demographics & underpenetrated market

55% of the 81mn population < age of 35 2

Loans/GDP: 60% vs. 98% in EU in 1Q18 3

Since 2017, monetary policy

remained tight due to high

inflation expectations.

Multiple policy tools aimed at

financial stability (i.e interest rate corridor, reserve

requirements, non-deliverable forward (NDF)

FX auctions, etc.)

TURKISH ECONOMY (I / II)

5-yrs avg. GDP growth: 6% vs. EM Europe: 4.5%1

E: Garanti Estimates as of July 2018

1 IMF’s World Economic Outlook Report dated April 2018. Ranking as of YE 2016

2 Source: TurkStat – 31 December 2017 Address Based Population Registration System

3 Source: ECB, TurkStat, BRSA for commercial banks, as of March 2018

%


CANLI YAYIN EKRANI

6

-6.8% -4.7% -3.7% -3.8% -5.5% -6.6%

-1.2% -1.1% 0.2% 1.1% 0.3% 0.2%

2013 2014 2015 2016 2017 2018E

CAD / GDP

BUDGET DEFICIT / GDP

-1.0% -1.1% -1.0% -1.1% -1.5% -1.9%

2013 2014 2015 2016 2017 2018E

TURKISH ECONOMY (II / II)

Fiscal Discipline

EU Defined Government Debt Stock: 28% as of 1Q18

vs. Maastricht criteria: 60%

Resilient central government debt composition

• TL: 58%, FC: 42% (as of 2Q18 vs. TL: 42%, FC: 58% in 2002)

• 75% fixed, 25% floating rate (as of 2Q18 vs. 45% fixed, 55% floating in 2002)

Core current account balance

(excluding energy and gold):

-US$5.9bn; -0.7% of GDP as of May 2018

E: Garanti Estimates as of July 2018

Core

CAD /GDP

CAD/GDP

High dependency of production on energy and intermediate goods

imports and being in the lower part of the global supply chain result

in both higher trade and accordingly CAD as the economy grows


CANLI YAYIN EKRANI

TURKISH BANKING SECTOR (I / II)

Other 30%

Total Assets

US$856bn

Foreign Shareholder

8

10

14

23

32

33

79

85

86

97

Sekerbank*

Odeabank*

ING

TEB

DenizBank

QNB FinansBank

Yapi Kredi

Akbank

Garanti

Isbank

- -

- 31.1%

BBVA (49.85%) 50.1%

- 49.5%

- 48.9%

UniCredit Group (40.9%) 17.8%

- 25.2%

QNB S.A.Q. (99.88%) 0.1%

Sberbank (99.85%)* 0.2%

BNP Paribas (72.5%) -


Top 4 Private Commercial Banks 4 39% 39% 41%

State Banks 3 32% 32% 34%

Other Private Commercial Banks 24 19% 18% 19%

Development & Inv. Banks 13 5% 6% -

Participation Banks 5 5% 5% 6%

# of Banks

Share in

Assets

Share in

Loans

Share in

Deposits

StateBanks

31%

Share in Assets

13.6%

11.0%

9.7%

9.6%

9.5%

9.0%

8.4%

4.0%

3.7%

2.7%

Total: 49

TOP 10 BANKS

State ekle ve Free float yaz

7

Dominated by top 4 Private Banks & 3 State Banks

State ekle ve 4 private ‘ı

ayır Free float yaz

Actual Free Float

Note: Sector figures are based on bank-only BRSA monthly data as of March 2018

Top 10 banks make up 83% of sector’s total asset

*As per Denizbank’s disclosure, Emirates NBD and Sberbank announce that they have entered into a definitive agreement whereby Sberbank will sell

its entire 99.85% stake in Denizbank to Emirates NBD. The closing of the transaction is subject to regulatory approval in Turkey, Russia, the United Arab

Emirates (UAE) and other relevant jurisdictions where Denizbank and its subsidiaries operate. The transaction is expected to close in 2018.

Foreign Shareholder

- -

- - 31.09%

BBVA 49.85% 50.07%

- - 49.53%

- - 48.80%

UniCredit Group 40.9% 17.81%

- - 25.21%

Qatar National Bank S.A.Q. 99.88% 0.12%

Sberbank 99.85% 0.14%

BNP Paribas 72.5% -

ING Bank 100.0% -

Bank Audi Group 100.0% -

Samruk-Kazyna, BTA Sec. 20.8%2 35.24%

% Ownership Share in Assets1

13.3%

11.1%

10.0%

9.7%

9.4%

9.1%

8.3%

3.9%

3.7%

2.6%

1.8%

1.1%

1.1%

% Free Float

Top 4

Private Banks

39%


CANLI YAYIN EKRANI

TURKISH BANKING SECTOR (II / II)

8

10

14

23

32

33

79

85

86

97

Sekerbank*

Odeabank*

ING

TEB

DenizBank

QNB FinansBank

Yapi Kredi

Akbank

Garanti

Isbank


Deposits fund 58% of assets

Liquidity Coverage Ratio (Total):122%1

vs. required level of 90% for 2018

Sufficient buffers against potential

external liquidity shock

SOLID ASSET QUALITY STRONG SOLVENCY COMFORTABLE LIQUIDITY

$46

$35

$94

Jan.18

L-T External DebtStock (maturingafter 1 year)

S-T portion of L-TExternal Debt

S-T ExternalDebt Stock

47% of Banks’

External Debt


47% of Private Banks’

External Debt


Short-term Long-term

Banks’

ST external debt2:

US$105bn (48% of external debt)

Quick FC Liquidity3

sufficient to cover

any liquidity shock

Basel III CAR

16.1%

CET-I capital:

84% of total capital

RWA/Assets

79% vs. 82% 2016YE

8

NPL Ratio

3.0%

Total Coverage Ratio:

~130%

ROAE: 16%

LEVERAGE: 8x

ROAA: 1.7%

Note: Sector figures are based on BRSA monthly data as of March 2018, for commercial banks only

1 Top 7 banks average per BRSA March 2018 Consolidated financials

2 Source: CBRT, as of May 2018 3 Quick Liquidity: Readily available liquidity buffer without CB reserves, any

issuances, asset reductions, deposit accummulations, asset sales. Liquidity Buffers FC reserves Under ROM,

swaps, money market placements, CBRT eligible unencumbered securities


CANLI YAYIN EKRANI

9

CHALLENGES & OPPORTUNITIES OF TURKISH BANKING SECTOR

SHORT-TERM

NATURE OF

DEPOSITS (~1 month)

SOUND

ASSET

QUALITY STRICTLY

REGULATED

& HIGHLY

MONITORED

HIGH

LIQUIDITY

AND STRONG

SOLVENCY

UNBANKED

POPULATION (>40% of adult

population)

SCARCITY OF

LONG-TERM

TL FUNDING

NO FX OPEN

POSITION

YOUNG

POPULATION 55% population

is under age of 35

PRIVILEGED

STATUS OF

STATE BANKS in collecting deposits

EXTERNAL FUNDING SHARE IN

TOTAL: ~15%

BASEL III &

IFRS9

COMPLIANCE

DUAL CURRENCY

BALANCE

SHEETS


CANLI YAYIN EKRANI

10


OUR VALUE CREATION

ABOUT GARANTI



CANLI YAYIN EKRANI

TOTAL ASSETS $84 BN

GARANTI AT A GLANCE

11

OWNED BY BBVA 50.1% ACTUAL FREE FLOAT

# DIGITAL CUSTOMERS 6.6 MN 63% DIGITAL PENETRATION*

GEOGRAPHICAL COVERAGE 100%

MARKET CAPITALIZATION $9 BN MOST VALUABLE COMPANY & MOST TRADED BANK

DIVIDEND PAY-OUT RATIO 27.6% HIGHEST DIVIDEND PAYMENT**

49.85%

TOTAL ASSETS $94 BN

# CUSTOMERS

# BRANCHES

# EMPLOYEES

>15 MN

20 K

946

$13 BN MARKET CAPITALIZATION

2nd LARGEST PRIVATE BANK WITH 11% MARKET SHARE

#1 IN NET PROMOTER SCORE

HIGHEST EMPLOYEE ENGAGEMENT SCORE OF SECTOR

100% GEOGRAPHICAL COVERAGE

MOST VALUABLE & MOST TRADED BANK

2nd LARGEST PRIVATE BANK WITH 10% MARKET SHARE

~1.5MN NEW CUSTOMERS/YR via 933 BRANCHES

Note: Financial figures are per BRSA Consolidated data as of June 2018

* Among active customers, as of June 2018.

Active digital customers are defined as at least 1 login within 3 months

Active customers are defined as utilizing at least 1 product actively within 3 months.

** Among top 4 private banks & 3 state banks


CANLI YAYIN EKRANI

12

Listed on Borsa Istanbul (BIST) Turkey since 1990

Depositary Receipts (DR) listed on

London Stock Exchange and on OTC since 1993

Trades on OTCQX International Premier since 2012 (OTCQX Ticker: TKGBY)

Listed on OTCQX ADR 30 Index

MCap1

$6bn

Weight in BIST

~7%

Avg. Daily Turnover2

$151mn

‘‘ Largest floating mcap in BIST – Actual free float: 50.07%

‘‘ Garanti’s DR program reached 130 million shares

(6% of free float) ’’

GARANTI SHARE

MCap

1 As of July 19, 2018

2 Average of daily turnover during 1H18

Largest floating

Mcap among banks in BIST

Actual free float:

50.06%

Most invested stock

by foreigners

Foreign Ownership

in free float: ~83%1


CANLI YAYIN EKRANI

13

SHAREHOLDING STRUCTURE

Note: Institutional shareholder and foreign individual shareholder composition

data based on IPREO Shareholder ID Analysis dated December 2017; the actual

free float ratio and the share of local individual shareholders are all based on

Central Agency Registry Agency data.

1 As of July 19, 2018.

Shareholders from

35 countries

Foreign investors

in free float

design

Share of foreign investors

in free float: (including DR holders)

83%

vs. peer avg. of 72%1


CANLI YAYIN EKRANI

14

ORGANIZATIONAL

STRUCTURE

UNDERGRADUATE

Süleyman Sözen Jaime Saenz De Tejada Pulido

Rafael Salinas Martinez de Lecea

Ergun Özen

M. Cüneyt Sezgin

Ricardo Gomez Barredo

Sema Yurdum Javier Bernal Dionis

Jorge Sáenz Azcúnaga Carranza

PRESIDENT & CEO

Ali Fuat Erbil

Independent Members

Süleyman Sözen

(Chairman)

Ergun Özen

Ricardo Gomez

Barredo*

Ali Fuat Erbil

(President & CEO)

Jaime Saenz

De Tejada Pulido

M. Cüneyt Sezgin

Rafael Salinas

Martines De Lecea Javier Bernal

Dionis

Sema Yurdum Jorge Saenz-Azcunaga

Carranza (Vice Chairman)*

BOARD OF DIRECTORS

*Since their appointment as an Audit Committee member of Garanti Bank, they are deemed

as an Independent Board Member in accordance with the relevant regulations of the Capital

Markets Board of Turkey.

Board member’lar değişecek


CANLI YAYIN EKRANI

15

OUR TEAM

Ali Fuat Erbil

Mahmut Akten

Retail Banking

Didem Dinçer Başer

Digital Banking, Customer Solutions and Experience

Cemal Onaran

SME Banking

Selahattin Güldü

Commercial Banking

Ebru Dildar Edin

Corporate and Investment Banking

Osman Tüzün

Human Resources and Support Services

İlker Kuruöz

Engineering and Data

Aydın Güler

CFO

Aydın Düren

Legal Services and Collection

Ali Temel

Chief Credit Risk Officer

Hüsnü erel ve recep baştuğ

çıkacak. Zeynepten

yeni line chart istenecek. University

undergraduate yazılacak

fotolar güncellenecek

Strategic Planning

& Responsible Business


CANLI YAYIN EKRANI

16

A UNIVERSAL BANK WITH STRONG PRESENCE IN ALL BUSINESS AREAS

RETAIL

COMMERCIAL

CORPORATE

SME

DIGITAL BANKING

PAYMENT SYSTEMS

Asset Contribution: 5.78%







Note: Asset contributions are calculated based on BRSA Consolidated

Financials as of March 31, 2018


CANLI YAYIN EKRANI


RETAIL BANKING

We welcomed

73 million customers

at our branches in 2017

Building long-lived

relationships with

our customers

People became

homeowners

with Garanti

590K

13% MORTGAGE

MARKET SHARE (Mortgages / GDP:6%

-- Huge growth potential)

(NPL ratio: 0.7%)

Retail customers

14 MN

14% CONSUMER LOAN

MARKET SHARE (#1 in consumer loans among private peers)

Customers saved

with Garanti 1.4 MN

11% CUSTOMER DEPOSIT

MARKET SHARE (Demand deposits share

in customer deposits: 24%)

17

BAŞLIKLAR DAHA

KUCAKLAYICI OLSUN

Note: Market shares are calculated based on BRSA Unconsolidated

Financials as of March 31, 2018


CANLI YAYIN EKRANI

SME BANKING

We offer information and advisory services to

support their development

9% TL BUSINESS

BANKING LOANS

MARKET SHARE

COMMERCIAL & CORPORATE BANKING

We position ourselves as the primary

business partner of our customers

PAYMENT SYSTEMS Strong presence in the credit card

business. License Turkey’s lovemark

Bonus card to 10 other banks

11% FC LOANS

MARKET SHARE

19% ACQUIRING &

ISSUING MARKET SHARE

18


Note: Market shares are calculated based on BRSA Unconsolidated

Financials as of June 30, 2018


CANLI YAYIN EKRANI

DIGITAL BANKING

We encourage

our customers’ digital migration.

We have been investing in

digital for >20 years to offer our customers

seamless omni-channel experience.

19


>500 types of transactions

24% of non-cash financial transactions Internet

Best in class in Europe1

60% of non-cash financial transactions

ATM

5.3mn followers: Europe’s Most Followed Bank

17 Social Platforms with 50 accounts

Social Media

77.4mn customer contacts in 2017

Avg. response time 33sec (sector 81 sec)

Call Center

Mobile

1 In customer user experience per Forrester’s Global Mobile Banking Functionality

Benchmark Study, 2017

Cash deposits/withdrawals: 102%

Serving non-bank customers through

cardless transactions


CANLI YAYIN EKRANI

20


OUR VALUE CREATION

ABOUT GARANTI



CANLI YAYIN EKRANI

21

WE ARE ONE TEAM WE THINK BIG CUSTOMER COMES

FIRST

OUR PURPOSE

TO BRING THE AGE OF OPPORTUNITY TO EVERYONE

OUR VALUES


CANLI YAYIN EKRANI

KEY TRENDS

22

OUR

BUSINESS

MODEL

OUR PURPOSE

’’

‘‘ To bring the

age of opportunity

to everyone

Digital transformation

Ecosystem decline &

social trends

Economic conditions &

regulatory environment


CANLI YAYIN EKRANI

30

40

50

60

70

80

90

100

30 40 50 60 70 80 90 100

1

2

8

4

3

5

12 10 6 11 9

7

Customer centricity and increasing customer satisfaction

6 Digital

Transformation

Financial

Performance

1

Investing in human capital Investing in

Human Capital

Digital transformation and technological advancement

Customer privacy and information security

12 Good corporate governance

5 Transparent disclosure of information for stakeholders

Financial performance (including solvency) & direct

and indirect impact on economy

Financial health and supporting customers in making

conscious financial decisions 8

Four Key Competencies of Best Customer Experience

Imp

ort

ance

to

Sta

keh

old

ers

Importance to Garanti Bank

Customer

Experience

CLUSTER # of ISSUE MATERIAL ISSUE

4

Corporate

Governance and

Risk Management

3 Risk and crisis management (including integrated

management of financial and non-financial risks

14 Compliance

2

10

11 Climate change and energy

7 Management of ESG risks

Responsible and

Sustainable

Development 9 Pioneering the development of sustainable banking

13 Stakeholder dialogue

MATERIAL ISSUES

14

13

23


CANLI YAYIN EKRANI

24

EFFICIENCY DIGITALIZATION EMPLOYEE

HAPPINESS

CUSTOMER

EXPERIENCE

OPTIMAL CAPITAL

UTILIZATION

RESPONSIBLE

& SUSTAINABLE

DEVELOPMENT

OUR STRATEGIC PRIORITIES

• Cost and revenue synergies • Unrivaled customer experience

• Transaction convenience

• Pioneering solution suggestions

• Expand digital customer base

• Increase digital sales

• Fair and transparent

management policy

• Focus on their

development, satisfaction

and wellbeing

• Transparent, clear and

responsible

• Innovative solutions

• Design our processes from

our customers’ perspective

• Supporting financial

literacy, health and

inclusion in solutions that

we offer

• Use capital effectively

• Disciplined & sustainable

growth

• Strict adherence to solid

asset quality

• Act with the principles

of trust, integrity,

accountability and

transparency

• Lending based on impact

investment principles

• Focus on community

investment programs


CANLI YAYIN EKRANI

UNDERSTANDING

CUSTOMER

DESIGN PHILOSOPHY

EMPATHETIC CULTURE MEASUREMENT SYSTEMS

Four Key Competencies of Best Customer Experience

864k customer feedbacks received in 2017

24 products or services changed & developed via customer feedbacks

AI program «Empathy Assistant»

to help branch employees

while resolving customer issues

4,930 Disabled friendly ATM

(98% of Garanti ATMs)

CUSTOMER

EXPERIENCE New service model in branches to

capture the benefits of emerging

digital world

Invests and applies the latest Big

Data and Analytics

Key Value Drivers

• Exceeding their expectations and

enhancing their satisfaction

• Supporting financial literacy, health and

inclusion with offered solutions

• Advise solutions to grow their businesses

in sustainable manner

Linked Sustainable Development Goals

83% of customers informed

about their financial status

Conducts after-service surveys for

all customer-facing employees

Operational quality indicator:

Customer Centricity Index

#1 in Net Promoter Score

for two consecutive years

25


CANLI YAYIN EKRANI

SHARE OF DIGITAL SALES

IN TOTAL SALES

GARANTI’S

MARKET SHARE IN DIGITAL

TRANSACTIONS

26

DIGITAL

TRANSFORMATION

Key Value Drivers

• Unrivaled customer experience

• Expand digital customer base

• Increase digital sales

• Prevent secure and interrupted service


6.6 mn digital customers

5.8 mn mobile customers

4.2 mn mobile-only customers

LEADING POSITION

IN DIGITAL BANKING

26% YoY Active digital

customers

35% YoY Active mobile

customers

EFFECTIVE

DIGITAL CHANNEL

UTILIZATION

43%

1/5

#1 with 93 score Most loved mobile

bank in Turkey 1st in Europe in customer user experience

in Mobile Banking


CANLI YAYIN EKRANI

27

INVESTING IN

HUMAN CAPITAL

Key Value Drivers

• Focus on employee development,

satisfaction and wellbeing

• Acting with shared wisdom

• Fair and transparent management policy

EMPLOYEE

ENGAGEMENT SCORE

OUTPERFORMS SECTOR Sector

65

53

0

TRAINING

PER EMPLOYEE Share of digital training: 27% vs. 17% in 2016

10 Programs

Note: Employee Engagement Score is per latest AON Hewitt Employee Engagement Study

36hours

EMPLOYEE

WELL-BEING

PROGRAMS

FIRST AND ONLY

COMPANY

FROM TURKEY

100



CANLI YAYIN EKRANI

28

RESPONSIBLE &

SUSTAINABLE

DEVELOPMENT

Key Value Drivers

• Drive positive change through strategic

partnerships

• Impact investment principles

• Focus on community investment programs

% of loans with ESG provisions in loan

agreements 100%

Investment in community programs

TL 20.3 mio

• TL9.3bn Impact Investment

• 32 Sustainable products/credit lines

• 30% Market Share in wind power projects

27 Participation in sustainability related

initiatives and memberships

8 Policies/Position Papers contributed

• 36 Engagement Platforms

• Included in 6 Sustainability indices

• 100% of new PF commitments in Greenfield

Energy Production Portfolio are Renewables

• TL 20.3mn investment in community programs Linked Sustainable Development Goals


CANLI YAYIN EKRANI

9.14 9.20

9.27

9.51

2014 2015 2016 2017

29

CORPORATE

GOVERNANCE

AND RISK MANAGEMENT

Key Value Drivers

• Transparent disclosure of information

• Integrated Risk & Crisis Management

• Compliance

Strengths

• • High quality service provision for customers

• Having the “Garanti IR” tablet application for Android and iOS platform

• Having a comprehensive and effective risk management system

• Dow Jones Sustainability Index

• AGMs conducted with a high level of compliance and attendance

• in TR & EN

• Effective BoD comprised of highly qualified & experienced members

High level of effectiveness in internal

audit activities

Presence in worldwide leading indices

Compliance assured through Integrity

committee

Through the risk appetite framework, the Bank determines the risks that it is prepared to take so as to . Risk Management coordinates the concerned parties and thus handles the preparation of the ICAAP report, which will be submitted to the BRSA. In addition, the stress test report is submitted to the BRSA, which addresses how the potential negative effects on macroeconomic data might alter the Bank’s three-year budget plan and results within the frame of certain scenarios, as well as their impact upon key ratios including the capital adequacy ratio.

CORPORATE GOVERNANCE RATING

Monitoring risk appetite framework on limits &

metrics

Profitability

Liquidity

Capital

To identify risks &

opportunities

Based on the

predicted capability of

safe handling of risks

to achieve goals

& strategic objectives

On metrics related to

capital, liquidity and

profitability and risk based

limits

Linking material themes

& strategic objectives

Determination of

manageable risks

Monitoring risk appetite

framework regularly

RISK MANAGEMENT PROCESS

Outlook:

Positive

Having a comprehensive and

effective risk management system

Risk

Measurement

By using methods compliant

with international standards,

and in accordance with the

applicable legislation.

Advanced risk management

tools are utilized



CANLI YAYIN EKRANI

30

FINANCIAL

PERFORMANCE (I / II)

Key Value Drivers


• Cost and revenue synergies

• Disciplined and sustainable growth

Basel II

Basel III -

Fully Loaded


ROAA

2.1% 18.1%

ROAE

7.7x

LEVERAGE

1 Required CAR = 8.0% + SIFI Buffer for Group 3 (1.5%) + Capital Conservation Buffer (1.875%)

+ Counter Cyclical Buffer (0.09%)

2 Representing June 2018 monthly average

14.0% CET-1 CAR

1H18

16.2%

SOLVENCY RATIOS

14.0%

11.5%

8.0%

Required level1

for 2018

Total LCR 149.6%

Minimum Req. for 2018 90%

FC LCR 161.7%

Minimum Req. for 2018 70%

LIQUIDITY RATIOS2

well above minimum required levels


CANLI YAYIN EKRANI

2015

2016

2017*

10%

13%

16%

19%

40% 45% 50% 55%

RO

AE

COST/INCOME

31

FINANCIAL

PERFORMANCE (II / II)

Key Value Drivers


• Cost and revenue synergies

• Disciplined and sustainable growth

INCREASING EFFICIENCY

+5pp

-13pp

Note: In the Cost/Income calculation, Income defined as NII + Net F&C +Trading gains/losses

– Provision for loans –Free Provisions set aside during the year +Other income+ Dividend Income


INCREASING EFFICIENCY

+5pp

-13pp

2015

2016

2017

1H18

10%

13%

16%

19%

40% 45% 50% 55%

RO

AE

COST/INCOME

44.9%

COST/INCOME

2.3%

OPEX/ AVG. ASSETS

59%

FEE / OPEX


CANLI YAYIN EKRANI

32


OUR VALUE CREATION


ABOUT GARANTI


CANLI YAYIN EKRANI

33

Highest NIM incl. Swap Cost Highest Net Fees & Commissions /

IEA & Non-cash Loans

Highest CAR Highest CET-I

4.7% 1.4%

18.3%

Highest ROAE Highest ROAA

2.4%

18.0% 15.8%

2nd Lowest Cost/Income

40.9%

Peer 3

Peer 2

Peer 11,996

Highest Net Income

ACHIEVED PIONEER POSITION

Highest Dividend Distribution

27.6%

TL Million, 3M18

Note: For fair comparison with the peers, latest available bank-only financials (31 March 2018) were used

Rankings are among private peers, namely Akbank, Isbank & YKB

Cumulative, 3M18

Cumulative, 3M18 Cumulative, 3M18

Cumulative, 3M18


CANLI YAYIN EKRANI

34

2018 PROJECTIONS

TL Loans (yoy) <14%

FC Loans (in US$, yoy) Shrinkage

NPL Ratio 4.0-4.5%

(No NPL sale assumed)

Net Cost of Risk ~150 bps

(excl. currency impact)1

NIM incl. Swap Cost (yoy) Flat

(including CPI impact)

Fee Growth (yoy) > 20%

Opex Growth (yoy) ~10%

ROAE > 17%

ROAA > 2.2%

BRANCH

TRANSFORMATION

RISK-RETURN

FOCUS IN LOAN

GROWTH

CUSTOMER

EXPERIENCE

DIGITAL

MIGRATION RETURN ON

CAPITAL

ACTIVE

MANAGEMENT OF

FUNDING BASE

Garanti works to create

sustainable value for all

its stakeholders


CANLI YAYIN EKRANI

36

Basel II

Basel III -

Fully Loaded

APPENDIX – SUSTAINABLE DEVELOPMENT GOALS


CANLI YAYIN EKRANI

37

Türkiye Garanti Bankasi A.Ş. (the “TGB”) has prepared this presentation document (the “Document”) thereto for the sole purposes of providing

information which include forward looking projections and statements relating to the TGB (the “Information”). No representation or warranty is made

by TGB for the accuracy or completeness of the Information contained herein. The Information is subject to change without any notice. Neither the

Document nor the Information can construe any investment advise, or an offer to buy or sell TGB shares. This Document and/or the Information

cannot be copied, disclosed or distributed to any person other than the person to whom the Document and/or Information delivered or sent by TGB or

who required a copy of the same from the TGB. TGB expressly disclaims any and all liability for any statements including any forward looking

projections and statements, expressed, implied, contained herein, or for any omissions from Information or any other written or oral communication

transmitted or made available.

DISCLAIMER STATEMENT

Garanti Investor Relations

www.garantiinvestorrelations.com

Levent Nispetiye Mah. Aytar Cad. No:2

Beşiktaş 34340 Istanbul – Turkey

Email: [email protected]

Tel: +90 (212) 318 2352

Fax: +90 (212) 216 5902

Note: Net Promoter Score research is conducted by independent research agency Ipsos for Garanti Bank. According to the research results, Garanti has the

highest Net Promoter Score, among retail customers representing its own profile, compared to peer group. Peer group consists of Garanti Bank, İş Bank,

Akbank, Yapı Kredi Bank, QNB Finansbank and Denizbank. Research was conducted between October ’17 and January ‘18. Main bank customers, who have

communicated with the banks over the last 3 months, surveyed face to face in the representative cities of Turkey by quota sampling. Score is calculated as a

weighted average of retail segments’ scores.

https://play.google.com/store/apps/details?id=com.garanti.garantiIR&hl=en

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CORPORATE PRESENTATION · $9 bn market capitalization most valuable company & most traded bank 27.6% dividend pay-out ratio highest dividend payment** 49.85% $94 bn total assets #