May, 20181

Source: State statistical office, May 2018

R. of Macedonia-facts

Area 25.713 sq kmCapital Skopje

Currency 1 denar (MKD) (1 €= 61,57 MKD;

1 USD= 54,64 MKD) Language Macedonian, AlbanianReligion Orthodox Christian, Muslim

GDP (2017) 619 788 mil. MKDGDP growth (IV 2017) 1,2%

Inflation (2017) 1,4% Population (2017) 2,07 mil.

Active Population (IV 2017) 0,95 mil.

Employment rate (IV 2017) 44,3%

Average monthly net/grosssalary (2. 2018) 23.158 MKD/ 33.994 MKD

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Key Investor’s drivers

Credit rating • Standard Poor's: BB- ; Fitch: BB. European oriented • EU & NATO candidate country.

Macroeconomic stability• Average yearly inflation below 3% over the last 5 years;• Monetary stability- stable currency and banking sector.

Attractive taxes(lowest taxes in Europe)

• 10% corporate income tax;• 10% personal income tax;• 0% tax on reinvested profit.

Liberal regime for foreign investment

• Incentives in the free economic zones, dissemination from double taxation, foreign entities can directly buy/lease land, etc.

Business oriented government • Fast company registration, modernized electronic real estate cadaster, electronic payment of taxes.

Qualified work force • Highly qualified and capable work force, at a relatively young age.

Strategic location and open market (free access to large market)

• Member of World trade organization (WTO);• Signatory of three multilateral free trade agreements:o SAA (Stabilization and Association Agreement) with EU member states;o EFTA (Switzerland, Norway, Iceland and Liechtenstein);o CEFTA (Macedonia, Albania, Moldova, Croatia, Serbia, Montenegro, Bosnia and

Herzegovina and Kosovo);• Bilateral Free Trade Agreements are signed with Turkey and the Ukraine.

Excellent infrastructure • Two international airports, a one-stop border crossing system.

Two pan European corridors • Corridor 8 east-west and Corridor 10 north-south.

Prospects for investing in R.

Macedonia

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Banking sector of R. of Macedonia

Stablebanking system

The capital adequacy ratio above

statutory minimum

Well capitalized with sound and well-managed

macroeconomic policy

Continuously low risk profile

Bad placements adequately covered by provisions in accordance

with the regulation

Significantly linked to euro whose stability is important for system stability

Consists of National bank

of R. of Macedonia, 15

commercial banks and 2

savings houses

Highly concentrated

with 5 large banks that are 3/4 of the total assets or total deposits

of the sector Dominantforeign capital

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TTK Bank is a universal commercial bank that provides diversifiedportfolio of banking / financial products and services in accordancewith individuals and legal entities needs: accounts, deposits, loans,Visa payment cards, payment operations in the country and abroad,fast money transfer MoneyGram, bank guarantees, letters of credit,securities trading, e-banking, mobile banking.

TTK Bank-Business model /

mission and values

Our values are:

Trust - be honest, thoughtful, consistent and transparent because trustis the foundation of our work;Responsibility - take the initiative, make decisions and stand behindtheir realization andTeamwork - create an efficient and working atmosphere.

Statement of Bank’s mission:

"We are a universal bank partner for small and medium enterprisesand individuals in Macedonia, which creates values for itsshareholders, clients and employees, through entrepreneurial andprofitable way of thinking, operational efficiency and building a long-term partnership."

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History of TTK Bank - a bank with a tradition

2016 – 2017 – maintenance of a competitive offer of products and services, mobile and electronic banking services improvement, introduction of electronic automated process for loan approval.

2013 – 2015 – improvement of products and services offer, e-services upgrade, introduction of mobile banking application, business network development, rebranding process, numerous

awards for social responsibility

2009 – 2012 – implementation of new modern organizational structure, intensive development of tailor made products and services, improvement of electronic banking services;

2008 - introduction of VISA credit cards;

2007 - new EBRD credit line for financing SME’s, as well as promotion of bank’s domestic credit card’s brand;

2006- foundation of TTK Banka Skopje (Teteks Tetovo as dominant owner and EBRD as owner of 25% of the banks capital);

2004- Teteks Kreditna Banka implements new full service integrated banking system;

2001 - foundation of Teteks Kreditna Banka Skope- by merger between Teteks banka Skopje and Kreditna banka Bitola;

1995 - Tetovska banka Tetovo begins to function independently;

1993 - foundation of Teteks banka Skopje;

1993- foundation of Kreditna banka Bitola;

1973 - Komercijalna banka Tetovo merges with Stopanska banka Skopje;

1962 - Komunalna banka Tetovo transformed into Komercijalna banka Tetovo;

1961 - Komunalna banka Tetovo founded as a universal bank;

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ТТК Bank -Shareholder

structure

47,84% Teteks with related entities

52,16% other with share less than 5%

Shareholder structure as of 31.05.2018

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ТТК Bank -Market share

TTK Bank – Balance sheet (in 000 MKD) Dec. 17 Dec. 16 Dec. 15ASSETSCash and cash equivalents 1.692.694 1.934.872 1.791.563Assets for trading 18.256 9.046 8.334Loans and advances to banks 99.913 89.912 -Loans and advances to customers, net 4.345.434 3.619.062 3.455.785Investments in securities 1.275.742 1.393.819 1.137.544Income tax receivables (Current) - - -Other receivables 22.262 20.510 19.747Foreclosed assets 121.184 225.536 343.825Intangible assets 17.965 18.034 19.974Property and equipment 213.651 178.850 182.370Total assets 7.807.103 7.489.641 6.959.141LIABILITESDeposits of banks 55.393 11 21.576Deposits of customers 6.160.150 5.854.193 5.273.079Borrowings 389.810 449.473 522.462Special reserve and provisions 11.132 10.323 5.444Income tax liabilities (Current) 2.944 5.939 1.612Other liabilities 69.608 56.591 58.799Total liabilities 6.689.037 6.376.530 5.882.972EQUITY AND RESERVESSubscribed capital 907.888 907.888 907.888Share premium 127 127 127Revaluation reserves 7.012 27.538 38.969Other reserves 98.521 93.878 76.933Retained earnings/ (Accumulated losses) 4.388 - 14.123Profit / (loss) for the period 100.128 83.680 38.129Total equity and reserves 1.118.065 1.113.111 1.076.169Total liabilities and equity and reserves 7.807.103 7.489.641 6.959.141

ТТК Bank -Balance sheet

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ТТК Bank -Income

statement

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TTK Bank- Income statement (in 000 MKD) Dec.17 Dec.16 Dec.15

Interest income 332,845 320,982 340,701

Interest expenses -67.713 -56.960 -72.232

Net interest income / (expenses) 265,133 264,022 268,468

Fee and commission income 152,238 173,048 181,939

Fee and commission expenses -25.665 -27.870 -25.668Net fee and commission income / (expenses) 126,573 145,179 156,27Foreign exchange gains / (losses), net 9,281 9,132 10,744Net income from other financial instruments recorded at fair value 3,114 1,046 -8

Other operating income 98,689 137,179 74,199

Operating income 502,789 556,558 509,674

Employees expenses -164.384 -156.104 -153.145

Depreciation and amortization -22.951 -22.220 -25.305

Other operating expenses -143.982 -152.575 -184.160

Impairment losses of non - financial assets, net -23.487 -52.464 -70.838

Operating expenses -354.805 -383.363 -433.449

Net operating income 147,985 173,196 76,225Impairment provision of financial assets, net -36.088 -79.579 -33.631

Profit/ (loss) before taxation 111,897 93,616 42,594Income tax -11.769 -9.936 -4.465

Profit/ (loss) for the year 100,128 83,68 38,129

Following customer needs and market conditions, TTK Bankcontinuously undertakes activities to improve the quality ofproducts.

Competitive products and services, special sales promotionsand promotional activities have direct influence on creatingcustomers interest and raising brand awareness.

All novelties are being regularly communicated in advertisingmaterials with recognizable image by applying a singleconsistent way of transmitting information to potentialcustomers.

The Bank regularly and transparently informs the public andthe media on all significant events related to the Bank’soperations.

TTK Bank has achieved high increase in advertisement andbrand awareness in the banking sector for minimum budget.That is a result of the clearly defined marketing strategy,targeted marketing communication, right choice of distributionchannels as well as direct marketing which is very effectivetool in reaching the target of the bank.

ТТК Bank -competitive

products and services

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ТТК Bank -competitive

products and services

TTK Bank is continuously actively engaged in the process of creating proactive and moderntechnological solutions for more competitive and accessible products and services for individualsand legal entities.

TTK Bank was selected as National Champion of the European Business Awards 2016/17 in theInnovation Award category and was recognized by its excellence, innovation and best practice.

New website in progress

Corporate social responsible strategy made TTK one of the SCR leaders in the country.Via transparent and ethical operations, TTK Bank supports and promotes values such as:trust, tradition, comfort, enthusiasm, experience and knowledge, team spirit andprofessionalism.The experience, the dedication and open cooperation with institutions and individuals fromthe society has contributed in developing social corporate responsible company, thatsupports individuals and institutions in developing normal and healthy environment in whicheveryone has equal opportunities and rights.The active support of TTK Bank to the society has been acknowledged by many differentactivities of sponsorships and donations to the culture, sport and education. TTK Bank hasreceived many rewards for its corporate social responsibility.

ТТК Bank -Corporate and

social responsibility

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ТТК Bank -Modern organizational

structure

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 Telephone

+389 2 32 47 000ext.

TTK Bank has wide spread network in Macedonia, with 7 branches,

19 sub-branches and 2 counters.

Branches and sub - branches network

Branches and Sub - branches Address

Sub-branch Skopje Centar 7 Dame Gruev st., Skopje 541

Branch Skopje 19a Naroden Front st., Skopje 508

Sub-branch Skopje Aerodrom 26a Jane Sandanski blv., Skopje 521

Sub-branch Skopje Gjorche Petrov 171a Partizanski Odredi blv., Skopje 551

Sub-branch Skopje Kisela Voda 43/1-1 Sava Kovacevich st., Skopje 571

Counter Skopje ASUC 26b Aleksandar Makedonski blv., Skopje 591

Sub-branch Skopje Avtokomanda 16 2/3 Makedonska Brigada st., Skopje 562

Sub-branch Kumanovo 1 102 JNA st., Kumanovo 611

Branch Kumanovo 38 Goce Delcev st., Kumanovo 604

Branch Tetovo 2b Ilindenska blv., Tetovo 208

Sub-branch Veles 42 Marsal Tito st., Veles 621

Sub-branch Tetovo ARM 4 Metodij Andonov Cento st., Tetovo 252

Sub-branch Tetovo PP 40 Ilirija st., Tetovo 242

Counter Tetovo Palma mol 8 Skopski pat st., Tetovo 261

Sub-branch Tetovo Ilindenska 22b Ilindenska st., Tetovo 271

Branch Ohrid 8v Makedonski Prosvetiteli st., Ohrid 632

Sub-branch Gostivar 18 Ivo Lola Ribar st., Gostivar 282

Sub-branch Kichevo 10 Kuzman Josifovski Pitu st., Kichevo 652

Sub-branch Struga 43 Proleterski brigadi st., Struga 642

Branch Bitola 7 Stolarska st., Bitola 303

Sub-branch Debar bb Bratstvo Edinstvo st., Debar 662

Sub-branch Prilep bb Boris Kidric st., Prilep 352

Sub-branch Bitola PP 204/4 1 Maj st., Bitola 323

Sub-branch Kochani 13 Kej na Revolucijata st., Kochani 721

Branch Shtip 67 Vancho Prkje st., Stip 704

Sub-branch Vinica bb Nikola Karev st., Vinica 732

Sub-branch Radovish bb 22 Oktomvri st., Radovish 691

Branch Strumica 2 Blagoj Jankov Mucheto st., Strumica 671

ATM network

Branch Skopje 19a Naroden front st.

Sub-branch Skopje Aerodrom 26a Jane Sandanski blv.

Sub-branch Skopje Centar7 Dame Gruev st.

Sub-branch Skopje Avtokomanda 2/3 16 Makedonska Brigada st.

Teteks shop, Skopje 1a Dimitrie Chupovski st., Center - Rekord

Sub-branch Skopje Gjorche Petrov 171a Partizanski Odredi st.

Sub-branch Skopje Kisela Voda 43/1-1 Sava Kovachevikj st.

Trade Centar Skopje City Mall 4 Ljubljanska st.

Sub-branch Veles 42 Marshal Tito st.

Branch Tetovo 2b Bulevar Ilindenska blv.

Sub-branch Tetovo ARM 4 Metodija Andonov Chento st.

Sub-branch Tetovo Ilindenska 226 Ilindenska st.

Counter Palma mall 8 Skopksi pat st.

Market Rimes 208/1 Blagoja Toska st.

Sub-branch Gostivar 18 Ivo Lola Ribar st.

Sub branch Debar bb Bratstvo Edinstvo st.

Branch Bitola 7 Stolarska st.

Real estate agency - Dora 1g Stolarska st.

Shop Komodore 42 Priepska st.

Sub-branch Bitola - Nova Bitola 41 General Vasko Karangelevski st.

Branch Ohrid 8v Makedonski Prosvetiteli st.

Branch Shtip 7 Vancho Prkje st.

Market KAM 26 Sremski front st.

Sub-branch Probishtip 7a Jakjim Stojkovski st.

Sub-branch Kochani 13 Kej na revolucijata st.

Sub-branch Radovish bb 22 Oktomvri st.

Branch Kumanovo 38 Goce Delchev st.

Sub-branch Kumanovo 1 102 JNA st.

Sub-branch Prilep bb Boris Kidrich st.

DPTU Kultura TZ DOOEL 7 Ilindenska st.

Sub-branch Struga 43 Proleterski Brigadi st.

Branch Strumica 2 Blagoj Jankov Mucheto st.

Sub-branch Vinica bb Nikola Karev st.

Sub-branch Kichevo 10 Kuzman Josifovski Pitu st.

BITOLA

SKOPJE

VELES

TETOVO

GOSTIVAR

DEBAR

KICHEVO

OHRID

SHTIP    

PROBISHTIP

KOCHANI

RADOVISH

KUMANOVO

PRILEP

KAVADARCI

STRUGA

STRUMICA

VINICA

ТТК Bank -Structure of employees

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10,20%

47,35%19,59%

20,41%

2,45%

Structure of employees according to age as of 31.05.2018

20 - 30 years

31 - 40 years

41 - 50 years

51 - 60 years

over 61 years

0,82%

10,20%

69,39%

3,27%

15,92%

0,41%

Structure of employees according to education as of 31.05.2018

Ph.D.

Master/MBA

College

High school

Secondary school

Primary school

ТТК Bank -Business

Development Plan 2017/19

FINANCIAL OBJECTIVES

• Increase of total assets with an average annual growth rate of 4%;

• Increase of the Balance Sheet amount up to MKD 8,4 billion;

• Positive financial result up to EUR 1,9 million within the projected period;

• Capital adequacy ratio above 15%.

Objectives according to the Business development plan 2017-2019:

OPERATIONAL OBJECTIVES

Continuous and timely adjustments of its operations with:

Legal regulation and monetary authorities’ measures; Supervisory standards and basic principles of corporate governance; Overall implementation of basic banking principles by using examples of best

banking practices.

Achieving profitable business through:

Developing flexible business practices that allow for sustainability in market competition;

Careful undertaking of acceptable risks; Optimization of resources and costs by continuous strengthening of

efficiency, savings and operations productivity.

Strengthening the position in the banking system of Macedonia through:

Maintaining marker share in key segments; Continuous moderate growth of total assets; Maintaining equity and financial stability in accordance to development

objectives via optimal equity capacity, financing sources, risk-weighted assets and ongoing liquidity.

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TTK BANK s.c. Skopje Naroden front 19a, 1000 Skopje

Republic of Macedoniatel: +389 (0)2 32 47 000 fax: +389 (0) 2 31 31 387

telex: 51162, 51794www.ttk.com.mkttk@ttk.com.mk

ТТК Bank -Contact & adresses

Supervisory Board

1. Msc. Gligorie Gogovski – President of Supervisory Board tel: + 389 (0) 44 355 001; +389 (0) 44 355 002, e-mail: teteks@t-home.mk:

2. Mr. Borislav Trpovski;

3. Prof. Tito Belicanec, Ph.D.;

4. Mr. Done Tanevski;

5. Prof. Metodija Nestorovski, Ph.D.;

6. Prof. Arsen Janevski, Ph.D.;

7. Mr. Zlatko Cerepnalkovski.

Management Board

1. Ph.D. Dragoljub Arsovski – President of the Management Board tel: +389 (0) 2 32 47 000, ext. 401, e-mail: dragoljub.arsovski@ttk.com.mk;

2. Mrs. Natalija Aleksova – Member of the Management Board.

Senior Management

1. Mr. Boban Gogovski - Head of Commercial Banking Division;

2. Mr. Dimitri Trpovski - Head of Strategic Banking Division;

3. Mr. Hristijan Trifunoski – Head of IT and back office Division;

4. Mrs. Irina Ristovska – Head of Legal affairs and problem loan workout Division.

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