TEB 31 December 20175 1 1 1 42 1 1 1 1 2 13 3 12 1 1 1 7 213 7 2 2 2 4 1 1 1 Bartın Sakarya Zonguldak Bayburt Nevşehir10 1 1 1 2 1 1 3 Cities with branches Cities with no branches

TEB

31 December 2017

Summary Balance Sheet

2

Source: TEB BRSA Consolidated Financials

TÜRK EKONOMİ BANKASI A.Ş.

Consolidated (in Mn TL)

31.12.16 31.12.17

Liquid Assets 15,261 13,521

Marketable Securities 4,671 5,560

Loans 58,073 65,330

Other Assets 3,386 3,359

Total Assets 81,391 87,770

Deposit 49,811 55,534

Funds Borrowed 14,360 14,564

Bond Issued 739 1,290

Repo 1,501 195

Subordinated Debt 2,300 2,314

Other Liabilities 4,818 4,772

Shareholders Equity 7,862 9,102

Liab.&Shr.Equity 81,391 87,770

Summary Income Statement

3



Consolidated (in Mn TL, cumulative)

31.12.16 31.12.17 YoY Chg

Net Interest Income 3,506.8 3,988.0 13.7%

Gains/Losses From Derivatives and FX position -386.2 -909.2

Securities Trading Gain/ Loss 3.1 -29.4

Net Fee&Commissions 1,027.7 1,123.3 9.3%

Other Income 572.2 458.8 -19.8%

Net Banking Income 4,723.7 4,631.5 -2.0%

Loan Provision Expense -1,121.9 -801.1 -28.6%

Net Operating Income 3,601.8 3,830.4 6.3%

Other Operating Expense -2,411.3 -2,488.8 3.2%

Dividend Income 0.8 1.2

Tax Provisions -246.0 -253.0 2.8%

Net Profit 945.3 1,089.8 15.3%

Asset and Liability Composition

4


81,391 83,081 81,893 82,506

87,770

3% 2%-1%

1%6%

31.12.16 31.03.17 30.06.17 30.09.17 31.12.17

Balance Sheet Growth

Total Assets Variance

18.8% 18.3% 15.0% 14.7% 15.4%

5.7% 6.6%5.2% 5.8% 6.3%

71.4% 70.9% 75.1% 75.6% 74.4%

4.2% 4.2% 4.7% 3.8% 3.8%

31.12.16 31.03.17 30.06.17 30.09.17 31.12.17

Asset Compositions

Liquid Assets Marketable Securities Loans Other Assets

61.2% 61.5% 62.8% 63.0% 63.3%

23.2% 22.2% 19.8% 20.6% 20.9%

5.9% 6.3% 7.0% 5.8% 5.4%

9.7% 9.9% 10.3% 10.6% 10.4%

31.12.16 31.03.17 30.06.17 30.09.17 31.12.17

Liability Compositions

Deposit Funds Borrowed Other Liabilities Shareholders Equity

A Closer Look into Loans

5

Source: TEB BRSA Bank only Financials

LOB Cross Sell

Corporate 6.0X

SME 4.2X

Retail 3.7X

Private 6.5X

79% 80% 81% 81% 81%

21% 20% 19% 19% 19%

56,364 57,27559,958 60,876

63,291

31.12.16 31.03.17 30.06.17 30.09.17 31.12.17

Loan Compositions

TL Loans FX Loans Total Loans

55.2% 55.0% 54.0% 52.0% 49.0%

28.7% 29.3% 30.0% 31.7% 33.9%

12.9% 12.6% 13.0% 13.6% 14.2%

3.2% 3.1% 2.9% 2.7% 3.0%

31.12.16 31.03.17 30.06.17 30.09.17 31.12.17

Breakdown of Retail Loans

Housing Consumer Credit Cards Vehicle

Corporate; 24.27%

SME; 47.44%

Retail; 27.86%

Private; 0.43%

Performing Loans, 2016 Q4

Corporate; 26.15%

SME; 47.54%

Retail; 25.90%

Private; 0.41%

Performing Loans, 2017 Q4

NPL and Coverage Ratios

6


NPL Ratio

0.9%

1.8%2.3%

4.6%

3.0%

2.8%

2.1% 2.2% 2.4% 2.3%

3.1% 3.2% 3.2% 3.2% 3.0%

3.8%3.5% 3.7%

5.3%

3.6%

2.7%

2.8% 2.7% 2.8%3.1% 3.2% 3.1% 3.0% 3.0% 2.9%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 17-Q1 17-Q2 17-Q3 17-Q4

TEB Sector

Coverage Ratio

67.5%

60.2%

52.6%56.0%

65.9%71.3%

60.0% 60.8%64.2%

67.3% 68.5%64.4%

61.6% 59.8%63.8%

89.7%86.8%

79.8%83.6% 83.8%

79.4%75.2% 76.4% 73.8% 74.6%

77.4% 77.9% 78.0% 79.5% 79.4%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 17-Q1 17-Q2 17-Q3 17-Q4

TEB Sector

Construction; 13.64%

Textile and Leather Products; 7.61%

Food, Beverage and Tobacco; 8.64%

Other; 9.06%

Metal Products; 7.57%

Motor Vehicles; 5.77%

Finance and Insurance; 4.73%

Transportation and Storage; 3.42%

Agriculture, Forestry and Fishing; 4.66%

Chemical Products; 4.37%Wholesale and Retail Trade;

3.55%

Machinery and Equipment; 2.28%

Electrical Apparatus; 2.77%

Precious Metal; 2.88%

Administrative and Technical Activities; 2.78%

Tourism; 2.53%

Wood Products; 2.62%

Potential Taxpayers; 1.28%

Fuel Products; 2.16%

Other Minerals and Mining; 1.67%

Computer, Electronic and Optical Products; 1.46%

Information and Communication; 2.17%

Rubber and Plastic; 1.46%

Food and Beverage Services (Restaurants); 0.93%

Sectoral Breakdown of Loan Portfolio(*)

7

(*) incl. non-cash loans, excl. retail loans

Composition of marketable securities

8


PS: The FX portfolio is vey small and it is all f ixed rate.

Total Securities Compositions Interest Rate Compositions

46% 40%

54% 60%

2016 Q4 2017 Q4

Total Securities

Floating

Fixed

45% 38%

35% 44%

20% 18%

2016 Q4 2017 Q4

TL Portfolio

CPI Linkers

Floating

Fixed

98.7%

1.3%

2016 Q4

TL

FC

96.8%

3.2%

2017 Q4

TL

FC

87.9%

4.4%

7.7%

2016 Q4

AFSTradingHTM

84.5%

8.3%7.2%

2017 Q4

AFSTradingHTM

A Closer Look into Deposits

9


59%54%

57%59% 60%

41% 46% 43% 41% 40%

49,833 51,140 51,63352,004

55,577

31.12.16 31.03.17 30.06.17 30.09.17 31.12.17

TL/FX Deposit Compositions

TL Deposits FX Deposits Total Deposits

85% 84% 83% 84% 83%

15% 16% 17% 16% 17%

7,6298,206

8,750 8,439

9,504

31.12.16 31.03.17 30.06.17 30.09.17 31.12.17

Time/Demand Deposit Compositions

Time Deposits Demand Deposits Demand Deposits

103% 111%115% 120%

113% 112% 116% 117% 114%

99%107% 113%

115%

115% 117% 118%119% 119%

12-Q4 13-Q4 14-Q4 15-Q4 16-Q4 17-Q1 17-Q2 17-Q3 17-Q4

Loan / Deposit Ratio

TEB Sector

Corporate; 20.13%

SME; 17.66%

Retail; 35.33%

Private; 26.87%

Total Deposits, 2016 Q4

Corporate; 22.39%

SME; 19.00%

Retail; 34.95%

Private; 23.66%

Total Deposits, 2017 Q4

Evolution of Cost of Risk

10

(1) COR includes specific and general as well as other

provision expenses

Cumulative ratio = annualized Provision Exp. (incl.GLLP) /

Average quarter-end Loans.

Quarterly ratio = annualized Provision Exp. (incl. GLLP) /

Average of last 2 quarter-end Loans


Cost of Risk (1)

3.57%

0.61% 0.72%0.84%

1.02%1.63%

0.61% 0.67%0.73% 0.80%

16-Q4 17-Q1 17-Q2 17-Q3 17-Q4

Quarterly Cumulative

Cost of Risk (SLLP)

2.94%

0.52% 0.59%0.73%

2.02%

1.04%

0.52%0.30% 0.25%

0.53%

16-Q4 17-Q1 17-Q2 17-Q3 17-Q4


Cost of Risk (GLLP)

0.02%

-0.36%

0.08% 0.13% 0.11%

-1.00%

0.02%-0.08%

0.08% 0.07% 0.04%-0.26%

16-Q3 16-Q4 17-Q1 17-Q2 17-Q3 17-Q4


Other Significant Ratios

11


(1) Annualized NII /

/ Avr of past YtD quarter-end Loan and MS for

cumulative line

/ Avr of last 2 quarter-end Loan and MS for

quarterly line

Comfortable CAR supporting growth

14.1%15.1%

16.4% 16.5% 15.7%

14.4%15.4%

16.7% 16.8% 16.1%

16-Q4 17-Q1 17-Q2 17-Q3 17-Q4

Consolidated Bank-Only

Cost / Income Ratio

49.6% 49.6%

56.1%56.7%

52.5%

50.8%49.6%

52.7%

54.0%

53.6%

16-Q4 17-Q1 17-Q2 17-Q3 17-Q4


Net Interest Margin (1)

5.8%

6.4% 6.4%

5.7%5.8%5.7%

6.4% 6.4%

6.1% 6.1%

16-Q4 17-Q1 17-Q2 17-Q3 17-Q4


TEB’s Network

12 12 12

TEB is present in 71 cities out of 81

As of 31/12/2017

Number of Clients: 5.5 million

Number of Branches: 504

Total Staff: 9,464

ATM: 1,743

POS: 114,482

12

4

Van

Konya

Kırşehir

Sinop

Çankırı

Bilecik Tokat

Bitlis

Hakkari Şırnak

Siirt

Karaman

Balıkesir

Afyon

Uş ak

Aydın

İzmir

Edirne

Kırklareli

İstanbul Tekirdağ

Çanakkale

Kocaeli

Yalova

Kastamonu

Samsun

Ankara Kırıkkale

Aksaray

Isparta

Burdur

Antalya

Mersin

Niğde

Yozgat

Amasya Ordu

Adana

Hatay

G.Antep

K.Maraş

Malatya

Adıyaman

G.Hane

Muğla

Düzce

Osmaniye

Kilis

Denizli Aydın

Uşak

Manisa

Bingöl Tunceli

Van

Muş

Ş.Urfa

Elazığ

Diyarbakır

Mardin

Batman

Erzincan

Giresun Trabzon

Rize

Eskişehir

Bursa

Kütahya

Bolu

Sivas

Çorum

Kayseri

Karabük Ardahan

Ağrı

Iğdır

Artvin

Kars

Erzurum

155

14

1

3

1

2

39

1

7

1

1

2

1

7

4

1 4

2

1

1 5

1

1

42

3

1 1

1

1

2

13

3

1 12

1

3 1

7

2

7

2

2

2

4

1

1

1

1

Bartın

Sakarya

Zonguldak

Bayburt

Nevşehir

1

1

1

1

13

2

1

1

3

Cities with branches

Cities with no branches presence

26

2

1

3

8

2

2 6

3

6

10

4 25

8

13

APPENDIX

14

Summary Balance Sheet



Bank only (in Mn TL)

31.12.16 31.12.17

Liquid Assets 15,237 13,489

Marketable Securities 4,668 5,558

Loans 56,364 63,291

Other Assets 3,458 3,420

Total Assets 79,727 85,758

Deposit 49,833 55,577

Funds Borrowed 12,839 12,767

Bond Issued 739 1,290

Repo 1,458 105

Subordinated Debt 2,300 2,314

Other Liabilities 4,759 4,686

Shareholders Equity 7,799 9,020

Liab.&Shr.Equity 79,727 85,758

15

Summary Income Statement



Bank only (in Mn TL, cumulative)

31.12.16 31.12.17 YoY Chg

Net Interest Income 3,437.3 3,907.8 13.7%

Gains/Losses From Derivatives and FX position -384.1 -905.9

Securities Trading Gain/ Loss 3.1 -29.2

Net Fee&Commissions 977.7 1,059.7 8.4%

Other Income 572.8 457.6 -20.1%

Net Banking Income 4,606.8 4,489.9 -2.5%

Loan Provision Expense -1,106.8 -791.2 -28.5%

Net Operating Income 3,499.9 3,698.7 5.7%

Other Operating Expense -2,338.7 -2,404.9 2.8%

Dividend Income 20.7 19.1 -7.8%

Discontinued Operations Income

Tax Provisions -240.2 -244.1 1.6%

Net Profit 941.8 1,068.8 13.5%

Ratings of TEB

16

FITCH Rating Outlook

Long Term LC BBB- Stable

Short Term LC F3

Long Term FC BBB- Stable

Short Term FC F3

Viability Rating bb+

National AAA (tur) Stable

Support 2

MOODY'S Rating Outlook (*)

Long Term FC Bank Deposits Ba2 Negative

Short Term FC Bank Deposits NP

Long Term LC Bank Deposits Ba1 Negative

Short Term LC Bank Deposits NP

Baseline Credit Assessment ba3

Adjusted Baseline Credit Assesment ba1

17

A Major Player of the Turkish Financial Services Market

17

TEB

Full range of banking services

TEB Factoring

5.64 % market share as of 4Q 2017

TEB Investment

12th largest brokerage &

investment house of Turkey with

3.65% market share at Borsa

İstanbul Equity Market as of 4Q

2017 and 3th largest brokerage &

investment house of Turkey with

9.99% market share at Borsa

İstanbul Derivatives Market as of

as of 4Q 2017

TEB Asset

Management

7th largest asset management company with 4.34% market

share as of 4Q 2017

TEB Arval

Operative since October 2007, 6.6% market share as of 4Q

2017

BNPP Leasing

7.1% market share as of 4Q 2017

TEB Cetelem

Consumer finance company in Turkey with 3.8% market share

as of 4Q 2017

BNPP Cardif

Insurance A major global player for

personal insurance

Turkish operations fully owned by BNP ParibasCardif (S&P A-

rated),100% subsidiary of BNP

Paribas

%3 market share in Turkey in protection insurance & pension

as of 4Q 2017

TEB Kosovo Operative since January 2008,

with 27 branches, as of Q4

2017

Loans: €366M Deposits: € 381M

Disclaimer

18

The information and opinions obtained in this document have been compiled or

arrived at by TEB from sources believed to be reliable, but no representation or

warranty is made as to their accuracy, completeness or correctness. All opinions

and estimates contained in this document constitute TEB’s judgement as of the

date of this document and are subject to change without notice. This document is

published for the assistance of the recipients, but is not to be relied upon as

authoritative or taken in subtitution for the exercise of judgement by any recipient.

TEB does not accept any liability for any direct or consequential loss arising from

any use of this document or its contents. This document is strictly confidential and

may not be reproduced, distributed or published for any purpose.

Documents

TEB 31 December 20175 1 1 1 42 1 1 1 1 2 13 3 12 1 1 1 7 213 7 2 2 2 4 1 1 1 Bartın Sakarya Zonguldak Bayburt Nevşehir10 1 1 1 2 1 1 3 Cities with branches Cities with no branches