Türk Ekonomi Bankası A.Ş

Türk Ekonomi Bankası A.Ş.

2008 4th Quarter Results

2 Türk Ekonomi Bankası A.Ş.

BNP PARIBAS JOINT VENTURE

113 2005

170 2006

87 2004

273 2007

Expanding Branch Network

336 2008/4Q



Corporate Banking

• Contribution to results (as of 3Q08):

• 25.3 % of loans

• 27.4 % of deposits

• 24.8 % of customer contribution

Cross-sell ratio : 5.19x

NPL ratio : 0.06 %

Corporate Loans (YTL Million)

989

15361642

2275

2005 2006 2007 2008/3Q

Spreads of Corporate Loans

2.572.42

2.14

2.41

1.27 1.27 1.221.43

2006 2007 2008/1Q 2008/3Q

YTL

FC



Commercial Banking

• Contribution to results (as of 3Q08) :

• 45.1 % of loans




NPL ratio : 1.08 %

Commercial Loans (YTL Million)

975

501

1410

925

1621 1618

20591992

Big Commercial (10-100 mio$) SME (2-10 mio $)

2005 2006 2007 2008/3Q

Spreads of Commercial Loans

6.40

8.06 8.02

6.57

2.25 2.3 2.34 2.34

2006 2007 2008/1Q 2008/3Q

YTL

FC



Tourism

5.0%

Wholesale/ Retail

7.2%

Food, Beverage &

Tobacco

10.1%

Construction

9.1% Consumer

12.4%

Metal

11.1%

Textile

9.4%

Other

13.0%

Elect. & optical

appliances

2.6%

Mining

2.7%

Machinery

3.1%

Agriculture

3.0%

Transportation

Veh.

3.0%

Misc. Services

3.6%Chemicals

4.3%

Bank-Only Loan Portfolio

Loan Portfolio by Industry 30.09.2008

Source: TEB, BRSA Bank-Only Accounts

Well diversified loan portfolio



Non Performing Loans

Non-Performing Loans as a % of Total Loans

Source: CBR of Turkey announcements and BRSA Bank-Only Accounts

1.4%0.0% 0.2% 0.5% 0.6%

3.8%2.5% 2.1%

1.3%0.9% 1.1% 0.9%1.8%2.2% 2.4%

7.2%

10.7%11.5%

6.0%

11.5%

16.5%

27.2%

4.9%3.7% 3.6%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008/3Q

TEB Sector Average



Small Business


• 13.0 % of loans




NPL ratio : 3.17 %

Spreads of Small Business Loans

7.88

10.53 10.71

9.13

2.793.55 3.73 3.83

2006 2007 2008/1Q 2008/3Q

YTL

FC

Small Business Loans (YTL Million)

35

313

867

1166

2005 2006 2007 2008/3Q



Retail Banking


• 16.5 % of loans


• -4.1 % of customer contribution


NPL ratio : 2.04 %

Spreads of Retail Loans

2.16

2.95 2.90 2.85

1.31

0.71 0.630.39

2006 2007 2008/1Q 2008/3Q

YTL

FC

Retail Loans (YTL Million)

386

679

1143

1487

2005 2006 2007 2008/3Q



Retail Banking – Credit Cards



Private Banking


NPL ratio : -


• 0.1 % of loans



Private Banking Assets (Billion US$)

0.7

1.3

1.81.9

2007 2006 2007 2008/3Q

Financial Highlights



Consolidated BRSA B/S Highlights

Source: TEB, BRSA Consolidated Accounts

YTL M illion Share Change Share Change

Assets Liabilities

Cash & banks 22% 3,839 2,950 30% Deposits 62% 10,807 8,184 32%

M.sec + repos 10% 1,783 1,829 -3% Repos 6% 1,079 922 17%

Loans + Trade rec. 65% 11,195 8,519 31% Funds Borrowed 16% 2,851 2,541 12%

Other Assets 2% 337 448 -25% Other Liab. 4% 692 929 -26%

Non- IE Assets 1% 171 199 -14% Total Liabilities 89% 15,429 12,576 23%

Total Assets 100% 17,325 13,945 24%

Subordinated Loans 2% 409 388 5%

Sh. Equity

Capital & Res. 8% 1,320 833 58%

Income 1% 167 148 n.m.

Total Sh. Equity 9% 1,487 981 52%

Total Liab + Equity 100% 17,325 13,945 24%

Reviewed Audited Reviewed Audited

9/30/2008 12/31/2007 9/30/2008 12/31/2007



Balance Sheet Growth

(mio YTL, USD & EUR)

Share 30.09.2008 30.06.2008 Change 31.12.2007 Change

(q-on-q) (y-t-d)

Assets

YTL 56.1% 9,968.98 8,878.25 12.3% 8,101.85 23.0%

USD 27.8% 3,725.85 3,603.88 3.4% 2,994.34 24.4%

EUR 16.1% 1,539.50 1,321.58 16.5% 1,390.95 10.7%

Loans

YTL 63.2% 7,122.29 6,569.27 8.4% 5,527.99 28.8%

USD 25.1% 2,398.32 2,144.29 11.8% 1,601.68 49.7%

EUR 11.6% 622.22 627.72 -0.9% 665.54 -6.5%

Deposits

YTL 50.1% 5,407.42 5,249.18 3.0% 3,702.20 46.1%

USD 35.8% 3,135.98 3,076.71 1.9% 2,808.66 11.7%

EUR 14.1% 855.30 767.73 11.4% 718.58 19.0%



Loans (TRY Million)

2,939

4,886

6,8647,817

8,5089,179

1.92% 2.03%

2.37% 2.42% 2.45%

2005 2006 2007 2008/1Q 2008/1H 2008/3Q

Volume Market share

Structure of Loans - Bank-Only

Source: TEB BRSA Bank-Only Accounts

66%

40% 14% 9%

Loans - Currency Mix

41%

69% 76% 76%

59%

31% 24% 24%

2005 2006 2007 2008/Q3

TL FC

Retail Loans

41% 33% 34% 34% 34%

29%

16% 15% 13% 11%

24%

26% 28% 28% 29%

23% 26% 26%

6%

24%

2006 2007 2008/1Q 2008/1H 2008/3Q

Housing Auto Consumer Credit Card

8%



Deposits (TRY million)

3,242

5,400

7,083

8,891 9,035 9,3211.29%

1.66%1.92%

2.19% 2.16%

2005 2006 2007 2008/1Q 2008/1H 2008/3Q

Volume Market share

Structure of Deposits – Bank Only


67%

31% 26%

2%

Deposits - Currency Mix

28%44%

51% 57%

72%56%

49% 43%

2005 2006 2007 2008/Q3

TL FC

Deposits - Time/Demand Mix

23% 19% 20% 16%

77% 81% 80% 84%

2005 2006 2007 2008/Q3

Demand Time

3%



Breakdown of Loans – Bank Only


∆ Volume

Corporate 2,274,621 25.3% 1,641,763 23.8% 38.5%

Commercial 4,051,311 45.1% 3,239,447 47.0% 25.1%

Big Commercial 2,059,395 22.9% 1,621,289 23.5% 27.0%

SME 1,991,916 22.2% 1,618,158 23.5% 23.1%

Small Business 1,166,130 13.0% 866,761 12.6% 34.5%

Retail 1,487,221 16.5% 1,142,597 16.6% 30.2%

Private 12,485 0.1% 7,803 0.1% 60.0%

YE 20072008 3Q



Breakdown of Deposits – Bank Only


∆ Volume

Corporate 2,543,065 27.4% 1,926,463 27.3% 32.0%

Commercial 1,175,539 12.7% 899,826 12.8% 30.6%

Big Commercial 640,610 6.9% 476,210 6.8% 34.5%

SME 534,929 5.8% 423,616 6.0% 26.3%

Small Business 695,689 7.5% 434,869 6.2% 60.0%

Retail 2,955,379 31.9% 2,231,273 31.6% 32.5%

Private 1,901,901 20.5% 1,562,270 22.1% 21.7%

YE 20072008 3Q



Marketable Securities (as of 30/09/2008)

Source: TEB, BRSA Bank-Only Accounts

Total

Fixed

48%

Floating

52%

Total

YTL

94%

FC

6%

YTL

Fixed

45%

Floating

55%

FC

Fixed

99.62%

Floating

0.38%



Consolidated BRSA Income Statement


YTL Million Change

Net Interest Inome 604.0 442.3 37%

FX Gains / (Losses) 21.6 66.0 -67%

Loan Loss Provisions -79.3 -41.1 93%

Adjusted Net Interest Income 546.2 467.2 17%

Net Trading Income -12.0 -94.0 -87%

Derivatives Trading 12.7 -91.6 -114%

Securities Trading Income -24.7 -2.4 912%

Marketable Securities Revaluation Differences -13.1 -5.2 154%

Net Fees & Commissions Income 176.6 120.0 47%

Other Operating Income 75.4 24.9 203%

Net Banking Income-Loan Loss Provisions 773.1 513.0 51%

Non-interest Expense -564.9 -364.9 55%

Operating Profit 208.2 148.1 41%

Provision for Taxes on Income -41.6 -33.9 23%

Net Income / (Loss) 166.6 114.2 46%

Reviewed Reviewed

30.09.2008 30.09.2007



Profitability Ratios


*Adjusted for loan loss provisions and FX losses/gains

ANIM*

3.403.80

4.384.90

4.43

2006 2007 2008/1Q 2008/1H 2008/3Q

Cost/Income

63.90%

74.00% 73.45%71.67% 73.07%

2006 2007 2008/1Q 2008/1H 2008/3Q

ROAE

22.03%

18.40%

23.14% 23.73%

16.70%

2006 2007 2008/1Q 2008/1H 2008/3Q



Ratios


CAR

13.30% 13.17%13.99%

13.00%

12.58%14.30%

14.88% 14.87% 14.07%

15.38%

2006 2007 2008/1Q 2008/1H 2008/3Q

Consolidated Bank-Only

Marketable Sec./Assets

16.10%

13.11%

11.11%10.30% 10.29%

2006 2007 2008/1Q 2008/1H 2008/3Q

Loans/Deposits

94.72%

104.20%

95.59%99.18%

103.58%

2006 2007 2008/1Q 2008/1H 2008/3Q



Contact Details

Investor Relations

+90 212 2512121

http://www.teb.com.tr

Çiğdem Başaran (ext. 1532) [email protected]

http://www.teb.com.tr/

mailto:[email protected]



Disclaimer

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

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