Investor Presentation

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The projections, forecasts and estimates of the Bank contained herein are for illustrative purposes only and are based on management’s current views and assumptions. Suchprojections, forecasts and estimates involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ materially from thoseanticipated in this presentation. The Bank expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in thispresentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based. Investors should note many different risk factorscould adversely affect the outcome and financial effects of the plans and projections described herein. As a result, you are cautioned not to place undue reliance on any forward-looking statements. The Bank, its advisers and each of their respective members, directors, officers and employees disclaim any liability in case projections and information given inthis document are not realised.

Table of Contents

Turkish Economy – Recent Headlines 1

Turkish Economy – Indicators 3

Banking Sector – Dynamics 5

Recent FX Volatility – Recent Government Actions Taken 6

Recent FX Volatility – Key Cost Implications for Banking Sector 7

Recent FX Volatility – Key Cost Implications for Corporate Sector 8

Recent FX Volatility – Implications for Albaraka Turk & Mitigating Points 9

Management Priorities 10

Albaraka Turk At a Glance 11

Albaraka Turk – Historical Financial Performance 12

Albaraka Turk – 1H2018 Financials 13

Debt Capital Markets Issuances 19

Outlook 20

Investor Relations 21

Turkish Economy - Recent Headlines

Material Exchange Rate Depreciation

on Gepolitical & Global Issues

Re-Balancing of Economic Growth

Inflationary Pressures on Exchange Rate

Pass-thru

Current Monetary Policy Stance of the

Central Bank

Recent TL Movement to Support Trade

Balance & Current Account Dynamics

Balance of Payments Deficit to Improve

from Slowdown in Capital Inflows

1

o As of 29/08/2018, the Lira has declined YTD by circa 40% vs. the USD

o Concerns regarding high inflation and debates over policy effectiveness have

contributed to recent TL pressures

o Geopolitics has also emerged as a key driving force behind recent TL movement with

US sanctions impacting investor attitudes

o Downgrades by the major rating agencies citing downside risks to Turkish Financial

Institutions are also weighing in on the Lira

Turkish Economy – Recent Developments

o CPI Y-o-Y in July was 15.85% and 17.90% in August reflecting ongoing pressures on

inflation

o Recent acute TL depreciation is contributing to pass-thru inflation via imports on

food prices and is expected to pressure inflation readings moving forward

o Tighter fiscal policy and a re-balancing in domestic demand are expected to provide

some eventual relief to inflationary pressures and the current account deficit

o Foreign Trade deficit in July declined 33% with exports increasing 12% y-

o-y and imports declining 7% y-o-y indicating recent TL depreciation is

leading to an adjustment in the trade balance

o Tourism sector continues to achieve records and provides a source of

incoming hard currency

o Current account deficit to reverse on the back of economic re-balancing

o After growing 7.4% in 2018 and 7.3% in the 1Q2018, a material re-balancing in

economic growth is widely expected in 2018

o High inflation, tighter fiscal policy, lower domestic demand, and global investors’

concerns regarding ongoing financing of the current account deficit in the wake of

hawkish US monetary policy are all weighing in on the growth outlook

o Tightening by the Central Bank since Jan.2018 has been taking place with

the policy rate increasing by 975 bps to 17.75%, the O/N lending rate by

1000 bps to 19.25%, and the Late Liquidity window by 800 bps to 20.75%

o Unconventional tightening is also taking place with the policy window

shut and with banks now borrowing at the O/N lending rate, effectively

another 150 bps tightening

o Effective use of other monetary policy tools such as ROM to inject USD

liquidity and tightening TL liquidity

o Central Bank has indicated further tightening is on the table following the

most recent release of inflation data on 3 September 2018

o The slowdown in foreign capital inflows will likely change the dynamics

of the Balance of Payments Deficit by eventually making Turkey less

dependent on foreign capital

2

Turkish Economy - Indicators

Buildup in Inflationary Pressures (Y-o-Y) Monthly Portfolio Flows, USD mln

Central Bank Monetary Policy (%) Confidence Indicators

3

17,90%

17,22%

32,13%

8,00%

13,00%

18,00%

23,00%

28,00%

33,00%

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Ma

r-1

8

Ap

r-1

8

Ma

y-1

8

Jun

-18

Jul-

18

Au

g-1

8

CPI Core Inflation PPI

-1.500

-1.000

-500

0

500

1.000

1.500

Au

g 2

01

7

Sep

20

17

Oct

20

17

No

v 2

01

7

De

c 2

01

7

Jan

20

18

Feb

20

18

Ma

r 2

01

8

Ap

r 2

01

8

Ma

y 2

01

8

Jun

20

18

Jul 2

01

8

Au

g 2

01

8

Stock Government Bonds Private Sector Bonds

6,00

11,00

16,00

21,00

26,00

Au

g-1

7

Sep

-17

Sep

-17

Oct

-17

Oct

-17

No

v-1

7

No

v-1

7

De

c-1

7

De

c-1

7

Jan

-18

Jan

-18

Feb

-18

Feb

-18

Ma

r-1

8

Ma

r-1

8

Ma

r-1

8

Ap

r-1

8

Ap

r-1

8

Ma

y-1

8

Ma

y-1

8

Jun

-18

Jun

-18

Jul-

18

Jul-

18

Au

g-1

8

Au

g-1

8

Au

g-1

8

O/N Lending 1 Week Repo Late Liquidity Window Benchmark 2y Bond

68,3

96,3

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Ma

r-1

8

Ap

r-1

8

Ma

y-1

8

Jun

-18

Jul-

18

Au

g-1

8

Consumer confidence Real sector Confidence s.a.

Source: CBRT, TurkStat

Source: TurkStatSource: CBRT

Source: CBRT, BIST

Turkish Economy - Indicators

-40%

-20%

0%

20%

40%

60%

80%

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

1H

17

1H

18

Revenues (lhs) $ mln Annual Growth (rhs)Source: Turkish Treasury

13,47%

11,05%

16,26%

14,36%

June 2018 Sensitivity

Sensitivity of Capital Ratios to Lira Depreciation from

USD/TRY: 4.56 to USD/TRY:7.00

CET1 Ratio CAR

55%

60%

65%

70%

75%

10.000

12.000

14.000

16.000

18.000

20.000

22.000

24.000

Jul 1

7

Au

g 1

7

Sep

17

Oct

17

No

v 1

7

De

c 1

7

Jan

18

Feb

18

Ma

r 1

8

Ap

r 1

8

Ma

y 1

8

Jun

18

Jul 1

8

Exports (lhs) USD mln Imports (lhs) USD mln

Export/Import Coverage Ratio, monthly Export/Import Coverage Ratio, 12 month cumulative

Tourism Revenues have been Recovering, annual revenue growth is 31% in 1H18

Export Coverage of Imports have been Improving, 70% in July 2018 versus 66% in the last 1 year

Banks’ Capital is Still Strong, even at USD/TRY of 7.00, CAR stands well above regulatory limit

Loan Re-Pricing Taking Place and Margins Management Underway (%)

4

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

Au

g-1

7

Sep

-17

Sep

-17

Oct

-17

Oct

-17

No

v-1

7

No

v-1

7

De

c-1

7

De

c-1

7

De

c-1

7

Jan

-18

Jan

-18

Feb

-18

Feb

-18

Ma

r-1

8

Ma

r-1

8

Ap

r-1

8

Ap

r-1

8

Ma

y-1

8

Ma

y-1

8

Jun

-18

Jun

-18

Jun

-18

Jul-

18

Jul-

18

Au

g-1

8

$ Lending Rate ₺ Lending Rates $ Deposit Rate ₺ Deposit Rates

Source: Turkish Treasury

Source: BRSA Source: CBRT

Banking Sector Dynamics

Annualized 13w Deposit Growth 13w Annualized Loan Growth Rates

Banking Sector NPL Formation Rate, 13w Moving Average Loan/Deposit Ratio

5

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

Au

g-1

7

Se

p-1

7

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Fe

b-1

8

Ma

r-1

8

Ap

r-1

8

Ma

y-1

8

Jun

-18

Jul-

18

Au

g-1

8

Lira FX Currency Adjusted

-20%

-10%

0%

10%

20%

30%

40%

50%

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

De

c-1

6

Jan

-17

Feb

-17

Ma

r-1

7

Ap

r-1

7

Ma

y-1

7

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Ma

r-1

8

Ap

r-1

8

Ma

y-1

8

Jun

-18

Jul-

18

Au

g-1

8

TL FX Currency Adjusted

-0,60%

-0,40%

-0,20%

0,00%

0,20%

0,40%

0,60%

0,80%

De

c-1

6

Jan

-17

Feb

-17

Ma

r-1

7

Ap

r-1

7

Ma

y-1

7

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Ma

r-1

8

Ap

r-1

8

Ma

y-1

8

Jun

-18

Jul-

18

Sector Participation Banks

80,0

85,0

90,0

95,0

100,0

105,0

110,0

115,0

120,0

125,0

Au

g-1

8

Jul-

18

Jun

-18

Ma

y.1

8

Ap

r-1

8

Ma

r.1

8

Feb

-18

Jan

-18

De

c-1

7

No

v-1

7

Oct

-17

Sep

-17

Au

g-1

7

Particpiaton Banks Banking Sector

Source: CBRT Source: CBRT

Source: BRSA Source: BRSA

Recent FX Volatility– Recent Supportive Government Actions Taken

Banking Sector

Asset Quality

� Rules governing the migration of Stage 2 loans that have been re-financed back to Stage 1 have been amended

(migration period changed from 1 year to 3 months)

� Banking Sector aggregate NPL ratio stood at 3.00% for 1H2018, although this is expected to increase in the coming

period

Banking Sector

Capital

Adequacy

� Local Regulator (BRSA) allowing banks to use June 2018 foreign currency rates in the calculation of FX denominated Risk

Weighed Assets

� The BRSA is allowing banks not to deduct marked-to-market losses from their equities subject to CAR calculation

� Banking Sector aggregate CAR stood at 16.26% for 1H2018, more than 2x Basel III requirement of 8% and well above the

regulator comfort zone threshold of 12%

INTENDED BENEFITS

Banking

Sector

Liquidity

Management

� One week repo shut and funding now being done 150 bps higher at the O/N lending rate of 19.25%

� Central Bank cut Lira reserve requirements by 250 bps for all maturity brackets and lowered reserve requirement ratios

for non-core FX liabilities by 400 bps for up to 3 year maturities thereby injecting TL 10 bio, USD 6 bio, and USD 3 bio

equivalence of Gold into the financial system

� Upper limit for FX under ROM was cut to 40% from 45% thereby injecting USD 2.2 bio of liquidity into the banking sector

� Borrowing limits for Overnight Transactions in the interbank market have been doubled

� Intraday loan limits for banks has been increased

� Raised FC Depo limits that may be used as collateral for TL transactions to EUR 20 bio from EUR 7.2 bio

� Re-started acceptance of EUR under Reserve Options Mechanism in lieu of TL reserves

� Discount rate for collateral on TL borrowings from CB has been lowered to 5% for all tenors

� Taxes Hiked on domestic FX deposit accounts and cut on Turkish Lira Accounts

SH

OR

T T

ER

M A

LLE

VIA

TIO

N M

EA

SU

RE

S

ACTIONS TAKEN:

Relieve buildup pressures

in NPLs reporting-wise

Provide temporary relief

to CARs

Measures taken by the

Central Bank have largely

aimed at broadening the

depth and breadth of

tools available to support

liquidity across currencies

while promoting local

currency savings. This is

being balanced with

measures to also tighten

monetary policy and

promote TL deposits.

6

External Debt of Banking Sector

$187 bio

Short Term*

$102 bio

Prone to Non-Rollover

$10 bio (90% rollover ratio)

Rolled Over

$92 bio (90% rollover ratio)

Long Term**

$85 bio

$ 10.0 bioLower Debt Rollover of Principal

$2.8 bioHigher Interest

Rates(s)***

$2.6 bioHigher Interest

Rates(s)***

Additional Cost Source

Total Potential Cost: USD 15.4 bio

Source: ABT Investor Relations

Recent FX Volatility– Key Potential Costs for Banking Sector

* Source: The Central Bank of Turkey Short-Term External Debt Statistics (Jun.2018), up to 1 year

** Source: The Turkish Treasury External Debt Statistics (Mar.2018), over 1 year

***Assumption that re-financing costs increase on average by 300 bps. Interest on FX debt is assumed to be a

weighted average of domestic and external rates.

Banks’ Reserves at the Central Bank

~$45 bio

Part of these funds will likely be drawn upon to address the potential UD 15.4 bio additional cost incurred from the recent YTD 40% decline in the TRY vs. USD as of 31/08/2018

7

FX Debt of Corporate Sector

$336 bio

Short Term*

$90 bio

Prone to Non-Rollover

$9 bio (90% rollover ratio)

Rolled Over

$81 bio (90% rollover ratio)

Long Term*

$246 bio

Hedged Exposure**

$135 bio

Unhedged Exposure**

$111 bio

Hedged Exposure

$45 bio

Unhedged Exposure

$36 bio

$ 9 bioLower Debt Rollover of Principal

$1.4 bioHigher Interest

Rates(s)***

$1.9 bio

Higher Interest Rates(s), FX

Depreciation

No Cost None

FX Depreciation on Interest Payments

$1.1 bio

Additional Cost Source

Total Potential Cost: USD 13.4 bio

FX Deposits of Corp. Sector

$79 bioSource: Bloomberg

Recent FX Volatility– Key Potential Costs for Corporate Sector

* Source: Central Bank Report on FX Assets and FX Liabilities on May data (Aug.2018)

** Source: IMF Report (45% from export revenues and 10% from derivatives)

***Assumption that re-financing costs increase on average by 300 bps. Interest on FX debt is assumed to be a

weighted average of domestic and external rates.

Part of these funds will likely be drawn upon to address the potential UD 13.4 bio additional cost incurred from the recent YTD 40% decline in the TRY vs. USD as of 31/08/2018

8

POTENTIAL IMPLICATIONS: MITIGATING FEATURES:

Debt Servicing of our FX

Liabilities

� Existing balance between our FC assets and FC liabilities is ensuring there is somewhat of a natural hedge to increased

debt burden

� Gradual deleveraging of FC liabilities taking place (ex: Repayment of USD 200 Million Tier 2 back in May 2018) since last

year

� Balancing of FC DCM transactions with TL-denominated domestic bond issuances dating back to early 2017

� We run no open FX position related to customer trades – all done on a back-to-back basis

� Very strong Liquidity Coverage Ratios for both FC position and FC+LC positions (well above regulatory requirements)

� One of the lower aggregate Loan-to-Deposit Ratios in the banking sector (100%), particularly for FC (55%)

� Sound Liquidity with Cash & C.E = 22% of assets (88% FC) and our liquid Hazine sukuk representing 2.5-3% of all assets

� Wholesale interbank borrowings from global markets represent circa 4% of all assets

� Comfortable CAR as of 1H2018 was 15.39%, well above regulatory requirements and above Basel 3 requirements (8%)

� TL depreciation impact on FC-adjusted Risk Weighted Assets is being neutralized by increase in our Tier 1 Ratio due to

USD-denominated Tier 1 equity in capital reserves (Tier 1 USD 205 mio sukuk = 24% of total equity)

� Current CAR is well above these 1H2018 figures

� We have historically always run a collateralization-centric secured lending policy and therefore the loan book is backed

by collateral (loan book overcollateralization is 150% as of 1H2018

� We have an early warning signals framework related to potential NPLs and are proactively engaging loan clients

� We have a robust and versatile approach to managing NPLs including out of court settlements, collateral liquidation, loan

restructurings, negotiated cash settlements, collateral enforcement and recovery

� We are proactively engaging all our existing core lenders/financiers and are providing full and transparent access to our

bank policies and procedures as it relates to liquidity management positions and asset quality (within existing information

sharing constraints of being a publically traded entity)

� Current forward-looking 1 year financing plan in place accounts for lower than expected Debt Rollover Ratio(s) with

current management priorities focusing exclusively on further liquidity consolidation

Cash & Liquidity Positions

as Well as FX Mismatches

Capital

Adequacy Ratios

Asset Quality

Debt Rollover

Ratio(s)

Recent FX Volatility– Key Implications for Albaraka Turk & Mitigating Tools

9

Management Priorities

Maintain High Liquidity

Sustainable Debt & Leverage Levels

Asset Quality Management Framework

Efficiency & Digitalization Push

• Cash + Cash Equivalents + interbank placements as of 1H2018 represent 22% of total assets

(these levels will be sustained and re-inforced)

• Total liquid assets (including securities portfolio) represents 27% of total assets

• FC Liabilities and FC assets as of 1H2018 was 55.3% and 54.9% (we plan to maintain this

balance)

• Liquidity Coverage Ratios for both LC and FC+LC was 211% and 145% respectively (70% vs

90% regulatory thresholds) – our current LCRs are well above these at present

• Our aggregate loan-to-deposit ratio (LDR) and FC LDR of 100% and 55% stand well below the

overall banking sector LDRs of 119% and 88% respectively

Supportive Factors: Relatively sticky & longstanding customer deposit base – Strong support

from shareholder ABG–Current management emphasis on prioritizing liquidity over loan growth

• Our current tier 1 / RWA leverage ratio of 6.18% is within the regulator threshold of 3% -

We plan to gradually reduce this leverage further to even healthier levels

• Very recent repayment of our USD 200 mio Tier 2 (2023s) to investors reflects our strong

investor-friendly stance

• Prior Plans to repay our upcoming November 2018 maturing USD syndication further

evidence this commitment to gradual deleveraging

Supportive Factors: Lack of material overleverage – sound liquidity profile – diversity of our

funding base and lack of dependence on just global DCM for funding

• Continued emphasis on improving the Cost to Income Ratio by

consolidating cost-side factors and focusing more on fee-generating

income areas

• Branch openings are more niche and focused on low overhead (5-6

personnel per branch) and higher digitalization focus – lower running

operational costs moving forward

• Recent digitalization push of alternative distribution channels and

process infrastructure is expected to deliver results related to improved

customer satisfaction, higher customer retention and positive

movement in cost to income

• Systematic, proactive and focused approach in place to manage NPL

stocks that includes: out of court settlements, collateral liquidation,

collateral repossession, restructurings, negotiated cash settlements,

collateral enforcement and recovery

• Embedded early warning signals framework related to potential new

NPLs introduced last year and will continue to be closely tracked

• Robust underwriting criteria/policies and conservative collateralization /

secured lending-based approach

• Supportive Factors: Colleteralization amount: ~42 Bn TL which has a

breakdown of: 52% Real Estate, 9% Cash& Cash Equivalents, 32%

Assignment of Receivable – Recent Gov’t support measures to alleviate

short-term pressures

10

Ratings LongTerm

ShortTerm

Outlook

B B Stable

BBB- A-3 Negative

BB+ A3 Stable

Stock Info

(Price and

Ratio as of

30 June

2018

Market Cap. 1,224 bn

PE Ratio 6,24

PB Ratio 0.37

Free float shares 227 mn

2480 137 202 224

461

3925

2002 2007 2012 2014 2018

Oldest Participation Bank in Turkey Dating

Back to 1984

The Only Publicly Listed Participation Bank on

Borsa Istanbul Stock Exchange (BIST)

# of employees

8x

# of branches

9x

Albaraka Türk established and started operations

A total of 24,000 investors submit more than USD 7 billion of demands

in Albaraka Türk’s IPO, valued at USD 170 million

First foreign branch opened in Erbil, Iraq

Albaraka Türk achieves the sector’s highest volume syndicated loan with a USD 350 million murabaha syndication

The Bank issued its first Basel 2 Tier 2 200 million USD subordinated sukuk in Turkey

Albaraka Türk issues its first Senior Sukuk issuance amounted 350 million USD

The first Tier 2 subordinated sukuk complying with Basel III criteria are issued in Turkey

The bank completes the first conversion of a Basel Iisukuk to Basel III compliant Sukuk amounted 200 million USD

1985

2007

2011

2011

2013

2014

2015

2017

Albaraka Türk At A Glance

Strong Majority Shareholders, the Bahrain-

based global islamic banking group, Albaraka

Banking Group, and the Islamic Development

Bank (Supranational)

Albaraka Banking Group54,06%

Publicly Listed25,22%

Local Shareholders

8,78%

Islamic Development Bank

7,84%

Alharthy Family3,46%

Others0,64%

Shareholding Breakdown (2Q2018)

Branch Expansion

Historical Timeline

Albaraka Türk raises additional Tier 1 capital by successfully issuing the Turkish Banking Sector’s first exchange-listed Tier 1 sukuk

2018

11

*USD equivalent of total assets

17.217

23.046

29.562 32.851

36.229 40.456

8.045 9.870 10.265 9.359 9.584 8.872

2013 2014 2015 2016 2017 1H'18

TRL USD*

Total Assets (million TRL)

12.060

16.18419.505

22.15825.193

27.689

5.636 6.931 6.773 6.313 6.665 6.072

2013 2014 2015 2016 2017 1H'18

TRL USD**

12.526

16.64320.346

23.15125.310

27.711

5.853 7.128 7.065 6.596 6.696 6.077

2013 2014 2015 2016 2017 1H'18

TRL USD*

Total Funded Credits* (million TRL) Total Funds Collected (million TRL)

* Financial leasing receivables included

**USD equivalent of total funded credits*USD equivalent of total collected funds

*USD equivalent of equity

1.4971.790

2.1042.273

2.482

3.282

700 767 731 648 657 719

2013 2014 2015 2016 2017 1H'18

TRL USD*

*USD equivalent of net profit share income

** Trialing of Last 4 Quarters’ net profit share income

625699

8861.023

1.2681.126

292 299 308 291 335247

2013 2014 2015 2016 2017 1H'18**

TRL USD*

*USD equivalent of net profit

**Trailing of last 4 quarters’ net income.

241 253

303

218237

302

113 108 105

62 63 66

2013 2014 2015 2016 2017 1H'18**

TRL USD*

Equity (million TRL) Net Profit Share Income (million TRL) Net Profit (million TRL)

CAGR: +19,1%

CAGR: +14,0%

CAGR: -5,1%

Albaraka Türk – A Look Back

12

Albaraka Türk – Q2 Main Highlights (Balance Sheet)

TRL million Q2’17 Q4’17 Q2’18 YtD( %) Y-Y (%)

Total Assets 34.217 36.229 40.456 11,7% 18,2%

Total Funded Credits 22.876 25.193 27.689 9,9% 21,0%

Deposits 23.771 25.310 27.711 9,5% 16,6%

Shareholder’s Equity 2.377 2.482 3.282 32,2% 38,1%

34.217 33.82736.229 37.084

40.458

22.876 23.71125.193 25.938

27.68923.771 24.10925.310

26.09927.711

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Total Assets Total Funded Credits Total Collected FundsAsset Segmentation (Q2’18)

Funded Credits; 68,4%

Securities Portfolio;

6,6%

Liquid Assets*; 21,8%

Other Assets; 3,2%

*Liquid Assets includes Cash and Cash Equivalents, Derivative Financial Assets and

Expected Loss Provision (-)

13

Albaraka Türk – Q2 Main Highlights (Income Statement)

TRL million Q2’17 Q1’18 Q2’18 QoQ (%) Y-Y (%)

Profit Share Income 655 663 720 8,6% 9,9%

Net Profit Share Income 321 250 249 -0,5% -22,6%

Total Operating Profits 417 597 464 -22,3% 11,3%

Provisions for Loan Loss 96 257 96 -62,8% 0%

Net Operating Profits 116 115 129 12,1% 11,1%

Tax Provision 20 17 30 76,3% 48,6%

Net Profit 96 98 98 0,8% 3,1%

96 98 98

Q2’17 Q1’18 Q2’18

Net Profit

3,53 3,463,35

3,193,14

3,92 3,87 4,02

3,71

3,35

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

NPSM (Exc. JV Projects)* Net Profit Share Margin*

3,1%321

250 24987

Q2’17 Q1’18 Q2’18

Net Profit Share Income JV

14

16491330 1349

1090 1.070

625

509 533629 640

979

989 994995 941

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Available for sale Held to Maturity Other Marketable Securities

2.827

3.253

2.714 2.650

Composition of Total Assets (TRL mn) (Q2’18) Liquid Assets (TRL mn)

Total Securities Portfolio (TRL mn) Securities Yield (%)

10,02

9,789,77

9,20

8,89

Q2'18Q1'18Q4'17Q3'17Q2'17

(*) Profit share income received from securities for the last 4Q/5Q average securities

2.876

9.734 8.784 9.612 9.397 10.926

28,44%

25,97% 26,53%25,34%

27,01%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Liquid Assets % of Total Assets

Funded Credits; 68,4%

Securities Portfolio; 6,6%

Other Liquid Assets*; 21,8%

Other Assets; 3,2%

*Liquid Assets includes Cash and Cash Equivalents, Financial Assets Measured at Fair

Value through Profit/Loss, Financial Assets Measured at Fair Value through Other

Comprehensive Income.

* Other Liquid Assets includes Cash and Cash Equivalents and Derivative Financial Assets

Albaraka Türk – Asset Composition

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Albaraka Türk – Funded Credits Portfolio

9,9 10,0

13,7 13,4

5,9

7,0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Blended Yield, adjusted, trailing

Yield on TL Credits, adjusted, trailing

Yield on FX Denominated Credits, trailing*USD equivalent

Total Funded Credits (including financial leasing, million)

QoQ Growth: 6,7% in TRL terms YoY growth: 21,0% in TRL terms

Yield on Performing Credits (%)

Profit share income received from credits for the last 4Q/4Q average credits

Q2’17 Q3’17 Q4’17 Q1’18 Q2’18

Corporate Credits 40,8 40,4 40,3 40,2 39,6

SME Credits 44,6 45,4 46,2 46,9 49,2

Retail Credits 14,6 14,2 13,5 12,8 11,2

Total 100.0 100.0 100.0 100.0 100.0

49%

33%

18%

TRL

USD*

EUR*

Composition of Total Funded Credits* (%) Currency Composition of Total Funded Credits* (Q2’18)

*Including USD & EUR indexed credits*According to BRSA definition

Q2’17 Q4’17 Q2’18 QoQ Ytd YoY

TL Credits, TL 12.215 13.151 13.599 2,7% 3,4% 11,3%

FC Credits, $* 1.520 1.619 1.771 14,3% 9,3% 16,5%

FC Indexed, $* 1.516 1.566 1.319 -21,0% -15,8% -13,0%

Total Credits, TL 22.876 25.193 27.689 6,7% 9,9% 21,0%

16

22% 21% 23% 21% 24%

19% 20%22%

19%21%

59% 59%56%

60%56%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Fund Borrowed* Current Accounts Participation accounts

Composition of Total Liabilities (Q2’18,%) Composition of Funding Base (TRL million)

68,5%

21,2%

8,1%

2,2%Funds Collected

Wholesale Funding

Shareholders' Equity

Others

32.885

19,2%

36.29530.448 30.501

*Fund Borrowed includes Funds Borrowed , Borrowings from Money Market

and Subordinated Loans

32.689

TL millions Dec’17 Jun’18 Comp. Ytd. Growth

Funds Collected 25.310 27.711 68,5% 9,5%

Wholesale Funding 7.379 8.584 21,2% 16,3%

Funds Borrowed 5.412 6.717 16,6% 24,1%

Syndicated Loans 1.192 1.907 4,7% 60,0%

Wakala 1.802 1.550 3,8% -14,0%

Issued Lease Certificates & Sukuk 1.781 2.386 5,9% 34,0%

Other 636 873 2,2% 37,3%

Sub-Ordinated Debt (Tier 2) 1.627 1.040 2,6% -36,1%

Interbank 340 827 2,0% 143,2%

Shareholders’ Equity 2.482 3.282 8,1% 32,2%

Paid in Capital 900 900 2,2% 0,0%

Tier 1 Sukuk - 776 1,9%

Others 1.582 1.606 4,0% 1,5% 17

Albaraka Türk – Funding Profile

Albaraka Türk – Asset Quality

6,025,36

4,685,34 5,57

2,73 2,391,98 2,20 2,35

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Gross NPL Net NPL

Gross Funded Credits by Groups (including financial leasing, million)

193 198 189

243227

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Cost of Risk** (bps)

NPL Ratio*

** Specific provisions for credits for last 4Q/ 5Q average credits

*Including financial leasing & accruals and rediscounts

Provisioning

87,6% 89,9%91,8% 85,4% 81,5%

6,4%4,8%

3,5% 9,3%12,9%

6,0%5,4%

4,7%5,3%

5,6%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18I. Group II. Group III. Group

778 725 699

848 929

54,6% 55,3%57,7% 58,7%

57,7%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Lifetime ECL Impaired Credits (Stage 3) Provisioning Ratio (%)

23.632 24.41625.878

27.04828.887

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Albaraka Türk – Outstanding DCM Issues

Domestic Issuances

Date Type Amount Maturity Coupon rate

March 2018 TRY Lease Certificate TL 200 mio 179-day 13,00%

May 2018 TRY Lease Certificate TL 200 mio 135-day 13,70 %

June 2018 TRY Lease Certificate TL 200 mio 178-day 16,00 %

July 2018 TRY Lease Certificate TL 200 mio 113-day 17,75 %

July 2018 TRY Lease Certificate TL 75 mio 107-day 17,75 %

August 2018 TRY Lease Certificate TL 75 mio 112-day 17,75 %

August 2018 TRY Lease Certificate TL 70 mio 372-day CPI Indexed

International Issuances

Date Type Amount Maturity Coupon rate

June 2014 Wakala Senior Sukuk USD 350 mio 5-year 6,25 %

November 2015 Wakala Sukuk (Subordinated Loan) USD 250 mio 10-year 10,50 %

February 2018 Wakala Sukuk (Sub ordinated –Tier 1) USD 205 mio Perpetual 10,00%

19

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Macroeconomic Outlook

Address : Saray Mahallesi Dr.Adnan Büyükdeniz Caddesi No:6 34768 Ümraniye/ İSTANBULE-mail : yim@albarakaturk.com.trTel : +90 216 666 03 03Fax : +90 216 666 16 20 Internet : www.albaraka.com.tr

Albaraka Türk – Investor Relations

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