Presentation. 4Q2010 BRSA Results

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1 Investor Presentation 4Q2010 BRSA Results 1

2 a Glance Ownership TSKB Credit Ratings (Dec 2010) İş Bank; 50.1% Free Float 41.6% Fitch LTFC Moody s LTFC BB+ Ba3 Corporate Governance Rating Vakıf Bank; 8.4% SAHA 8.92/10 Main Subsidiaries Yatırım Finansman Securities İş Leasing 96% 29% TSKB Real Estate Appraisal TSKB REIT 100% 64% Established in 1950 Largest private investment & development bank in Turkey USD 5.1 billion asset size The 16 th largest bank in Turkey 347 employers, 3 branches 2

92/10 Main Subsidiaries Yatırım Finansman Securities İş Leasing 96% 29% TSKB Real Estate Appraisal TSKB REIT 100%

3 Snapshots 2010 (USD mn) Growth (%) Liquid Assets % Loans % Asset Size % ROE : 18.4% NPL : 0.5% CAR : 22.7% Funds % Equity % Net Profit % 3

105 20% ROE : 18.4% NPL : 0.5% CAR : 22.

4 Banking Sector vs TSKB 2010 Banking Sector TSKB CAR 18.9% 22.7% Loans/ assets 52.5% 5% 61.2% NPL 3.7% 0.5% Cost to income 41.2% 18.1% NIM 4.5% 4.2% ROAE 18.1% 18.4% Banking Sector TSKB %62 Deposits %59 Long Term Funding 4 62% of liabilities are deposits 60% of liabilities are long term funding (Average maturity is less than 3 months) (Average maturity is 10 years)

4% Banking Sector TSKB %62 Deposits %59 Long Term Funding 4 62% of liabilities are deposits

5 Business Lines MAIN BUSINESS LINES Corporate Banking Investment Banking Treasury Key Subsidiaries Corporate Loans Corporate Finance ALM Yatırım Finansman Securities Project Finance Brokerage Fixed Income TSKB REIT Apex Banking Asset Management Spot&Derivative Trading TSKB Real Estate Appraisal Trade Finance TMU TSKB Real Estate Advisory TSKB Real Estate Brokerage 5

Finance Brokerage Fixed Income TSKB REIT Apex Banking Asset Management Spot&Derivative

6 Corporate Loans Corporate Lending and SME Loans Over the last 5 Leasing Trade Finance Non cash Loans years, TSKB has financed half of USD 7.7 bn investments and contributed to the creation of new jobs. 6

7 Project Finance Renewable energy investments reached USD 5.3 bn of which USD 1.6 bn is underwritten by TSKB. 96 projects with total installed capacity of MW in Hydro, Wind, Geothermal and Biomass. 53 of these projects are syndicated with other banks Prospects Alternative energy sources Acquisition finance Real Estate Sector 7

950 MW in Hydro, Wind, Geothermal and Biomass.

8 Apex Banking 5 Commercial Banks 12 Leasing Companies 9 Commercial Banks 9 Leasing Companies %18 of lending through APEX scheme Placed through 22 intermediary financial instituions USD 1.19 bn APEX funds; USD 900 mn to exports, USD 219 mn to SMEs Reached over 1,000 companies. SMEs Exporters 8

intermediary financial instituions USD 1.

9 Long Term Funding Outstanding Funding Base European Investment Bank (EIB) USD mn 2,848 3,016 2,513 2,036 1,670 1, World Bank (IBRD) Council of Europe Development Bank (CEB) Kreditanstalt für Wiederaufbau (KfW) Agence Française de Developpement (AFD) Long term Funds Short term funds International Finance Corporation(IFC) Islamic Development Bank (IDB) 9

Europe Development Bank (CEB) Kreditanstalt für Wiederaufbau (KfW) Agence Française de Developpement

10 Funding Base Funding Long Term Funding; 82% Long term funding average maturity: 10 yrs Short Term Funding; 8% Outstanding Funds EIB 35% 93% of long term funds guaranteed by Turkish Treasury Short term funding: 8 % In last 3 years, USD 1.8 bn funding agreements were signed IBRD 44% CEB 9% AFD 5% KFW 5% 10

long term funds guaranteed by Turkish Treasury Short term funding: 8 % In

11 Corporate Finance M&A and Strategic Consulting Impressive track record in M&A buyside and sell side mandates Consulting for privatization projects to both buy side and sell side Devam Ediyor Devam Ediyor Aralık 2010 Aralık 2010 Company and asset valuations Feasibility studies ESTON Gayrimenkul Şirketi TSKB Satış Danışmanlığı Aroma Ayedaş Elektrik Dağıtımğ Akdeniz Elektrik Dağıtımğ TSKB TSKB TSKB Satış Danışmanlığı Alım Danışmanlığı Alım Danışmanlığı Brand appraisals Strategic investments Net Holding Akfen GT İstanbul Seramik Eker Süt Establishment of new companies and investment trusts TSKB Firma Değerlemesi TSKB Firma Değerlemesi TSKB Firma Değerlemesi TSKB Firma Değerlemesi 11

12 Public Offering & Bond Origination Public Offering 3 IPOs were completed in Emlak Konut REIT IPO was the 5 th biggest IPO in Turkish history. Bond Origination One digit interest rates and Turkey s solid economic outlook resulted in the initiation of private sector bond issuance. COMPLETED : TSKB Bank Bill Issuer and Consortium Leader 180 and 360 days maturity TRY 200 mln August 2010 Ekspo Factoring Bond Issuance Consortium Leader 2 years maturity TRY 20 mln October 2010 ONGOING: A Bank Bank Bill Issuance Consortium Leader 6 and 12 months maturity TRY 150 mln Şekerbank Bank Bill Issuance Issuer and Consortium Leader 12 and 18 months maturity TRY 500 mln 12

COMPLETED : TSKB Bank Bill Issuer and Consortium Leader 180 and 360 days maturity TRY 200 mln August 2010 Ekspo Factoring Bond Issuance Consortium Leader 2 years

13 Asset Management & Brokerage Conventional Investment Funds Private Asset Management TSKB Investment Trust Capital Guaranteed Funds under the Umbrella fund Secondary capital market transactions: Investment Advisory and brokerage services to private&institutional customers in equity, fixed income, FX and derivative products TSKB Trading Platform (TTP) İstanbul Ankara İzmir İzmir branches 13

transactions: Investment Advisory and brokerage services to private&institutional customers in

14 Financial Highlights Foreign Currency Turkish Lira Assets Liabilites Assets Liabilities Long Term Loans 5 years 59% Long Term Funds 10 years 59% Liquid Assets 26% Repo 13% Free Capital 12% 14

Term Loans 5 years 59% Long Term Funds 10 years

15 Composition of Assets Loan/ Asset ratio: 61% 31% 38% 35% Liquid Assets 65% of assets are FX denominated yabancı para 63% 57% 61% Loans Others 74% of fliquid idassets are TRY government bonds USD Bn 6% 5% 4% Other assets: subsidiaries and tangible assets Total Assets (TRY) % (ytd) 15

idassets are TRY government bonds USD Bn 6% 5% 4% 2008 2009 2010 Other assets:

16 Loans USD Mn, Loans by Sector 2,580 2,642 18% 3,125 Logistics 9% Other 21% Energy Distrubution 6% Construction 4% Metal 4% Energy Production 29% Tourism 4% Finance 23% 96% foreign currency denominated Loans by Type No currency mismatch 48% in EUROs, 48% USD 5 years of average maturity 0.5% NPL Ratio Apex 18% Corporate Loans 40% Project Finance 42% 16

Finance 23% 96% foreign currency denominated Loans by Type No currency mismatch 48% in

17 Securities Portfolio TL FX($) ,315 1,943 1,985 Duration is 6 months in Zero Coupon bonds, 3.4 yrs in FRNs. 85% is in AFS portfolio Floating in TRY portfolio: 61% TRY Fixed 43% FX Floating 5% TRY Floating 31% TRY Fixed 32% FX Floatin g 1% TRY Floatin g 43% 81% of the portfolio: TRY securities FX Fixed 16% CPI Linked 5% FX Fixed 18% CPI Linked 6% 17

2008 2009 2010 Floating in TRY portfolio: 61% 2009 2010 TRY Fixed 43% FX Floating 5% TRY Floating

18 Liabilities USD mn 4,096 4,612 5, % 68.4% 6.5% 18.6% 15.0% Repo 61.8% 46% 4.6% 59.1% 9.9% 12.1% 15.1% 16.0% Long Term Funds Other Equity Total FX borrowings: USD 3.4 bn Equity growth: 21% Paid in Capital: TRY 700 mn Leverage ratio: 6.3X

19 Shareholder s Equity TRY mn 21% Capital Adequacy Ratio ,041 1,264 21% 20% 25% 22% 23% 20% CAR Tier 1 Equity Movement Free Capital Ratio 212 1,264 1, % 11.0% 12.2% 2% 2009 Equity Cash Dividend MTM Gains 2010 Net Profit 2010 Equity

Equity Movement Free Capital Ratio 212 1,264 1,041 34 45 8.5% 11.0% 12.

20 Income Breakdown (TRY mn) Change Adj. Net Interest Income %15 Net Commisions 8 15 %88 Dividend Income %21 Other Operating Income %13 Net Banking Income %17 Banking Income 17% Personnel Expenses %9 Adm. Expenses %23 Commission Other Op. Expenses 9 11 %11 Income Operating Profit %18 Provisions(+/ ) % 57 Tax Provisions %58 88% Net Profit %21 20

15 17 %13 Net Banking Income 293 344 %17 Banking Income 17% Personnel Expenses 33 36 %9 Adm.

21 Quarterly Income Breakdown (TRY mn) 4Q09 1Q10 2Q10 3Q10 4Q10 Change Adj. Net Interest Income Net Commisions Dividend Income Other Operating Income Net Banking Income Personnel Expenses % % % % % % Adm. Expenses % Other Op. Expenses Operating Profit Provisions(+/ ) i % % N.A. Tax Provisions % Net Profit % 21

22 Income Breakdown 175 Net Profit % %85 Income Breakdown %86 %84 Interest Income %4 %4 %5 %3 %5 %4 %9 %6 %7 %2 %5 %5 Commissions Dividend Other Net Interest Income Breakdown 54% 60% 50% 46% 40% 50% Liquid Assets Loans 14% Commission Income Breakdown 30% 27% 15% 16% 16% 36% 40% 41% 16% Brokerage 15% 33% Fund Mng. Corporate Finance Non cash Loans 22

23 Key Performance Indicators 16.0% ROAE 19.5% 18.4% ROAA 2.7% 2.9% 20.4% Cost to Income 17.9% 18.1% 2.1% NIM Spread 3.0% 2.6% 4.13% 4.07% 4.12% 2.3%

24 Stock Performance 600 TSKB XU100 XBANK growth % YTD yield % MCAP (mn TL) %71 %25 %20 1,900 1,700 1,500 1,300 1, Şubat 0 Mart 0 Nisan 0 Mayıs 0 Haziran 0 Temmuz 0 Ağustos 0 Eylül 0 Ekim 0 Kasım 0 Aralık 0 Ocak 1 Şubat 1 Mart 1 Nisan 1 Mayıs 1 Haziran 1 Temmuz 1 Ağustos Eylül 1 Ekim 1 Kasım MCAP Foreigners MCAP (mn TL) Foreigners Share(%) % ,092 38% %

25 Project Finance Awards Two awards to TSKB Euromoney Project Finance Magazine 2010 Deals of the Year European Hydro PowerDeal of the Year European Utilities Deal of the Year Boyabat Dam ve HES Project Finance Uludağ Electricity Distribution and Çamlıbel Electricity Distribution Shares Purchase Project Finance 25

26 Contact Us Financial Institutions & Investor Relations Meclisi Mebusan Caddesi No: 81 Fındıklı Istanbul Turkey Tel: +90 (212) Fax: +90 (212) Internet: 26

How To Understand The Financial Performance Of A Bank In Turkey

How To Understand The Financial Performance Of A Bank In Turkey Sixty years of sustainable rythm in the Turkish economy Investor Presentation 2009 @ a Glance Ownership 42% İs Bank 50.1% Vakif Bank Free Float 8% Credit Ratings (Jan 2010) Fitch LTFC Moody s LTFC BB+