Investor Presentation 4Q2010 BRSA Results 1
TSKB @ 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
Snapshots 2010 (USD mn) Growth (%) Liquid Assets 1.764 1% Loans 3.125 18% Asset Size 5.105 20% ROE : 18.4% NPL : 0.5% CAR : 22.7% Funds 3.275 11% Equity 816 17% Net Profit 137 17% 3
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)
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
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 15.000 new jobs. 6
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 2.950 MW in Hydro, Wind, Geothermal and Biomass. 53 of these projects are syndicated with other banks. 2011 Prospects Alternative energy sources Acquisition finance Real Estate Sector 7
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
Long Term Funding Outstanding Funding Base European Investment Bank (EIB) USD mn 2,848 3,016 2,513 2,036 1,670 1,293 312 368 640 413 94 258 2005 2006 2007 2008 2009 2010 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
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
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 2010 2010 2009 2009 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
Public Offering & Bond Origination Public Offering 3 IPOs were completed in 2010. 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
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
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
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% 2008 2009 2010 Other assets: subsidiaries and tangible assets 4.6 5.1 4.1 Total Assets (TRY) 2008 2009 2010 15% (ytd) 15
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% 2008 2009 2010 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
Securities Portfolio TL FX($) 327 300 303 1315 1,315 1,943 1,985 Duration is 6 months in Zero Coupon bonds, 3.4 yrs in FRNs. 85% is in AFS portfolio. 2008 2009 2010 Floating in TRY portfolio: 61% 2009 2010 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
Liabilities USD mn 4,096 4,612 5,105 13.0% 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 2008 2009 2010 18
Shareholder s Equity TRY mn 21% Capital Adequacy Ratio 750 1041 1,041 1,264 21% 20% 25% 22% 23% 20% 2008 2009 2010 2008 2009 2010 CAR Tier 1 Equity Movement Free Capital Ratio 212 1,264 1,041 34 45 8.5% 11.0% 12.2% 2% 2009 Equity Cash Dividend MTM Gains 2010 Net Profit 2010 Equity 2008 2009 2010 19
Income Breakdown (TRY mn) 2009 2010 Change Adj. Net Interest Income 251 289 %15 Net Commisions 8 15 %88 Dividend Income 19 23 %21 Other Operating Income 15 17 %13 Net Banking Income 293 344 %17 Banking Income 17% Personnel Expenses 33 36 %9 Adm. Expenses 13 16 %23 Commission Other Op. Expenses 9 11 %11 Income Operating Profit 238 281 %18 Provisions(+/ ) 28 12 % 57 Tax Provisions 35 57 %58 88% Net Profit 175 212 %21 20
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 67 72 76 70 71 1% 3 2 4 2 6 145% 0 7 16 0 0 0% 4 3 5 4 5 56% 74 84 101 76 82 8% 11 8 8 8 12 46% Adm. Expenses 5 4 5 3 4 41% Other Op. Expenses Operating Profit Provisions(+/ ) i 1 2 3 4 2 49% 57 70 85 61 64 5% 7 1 2 0 9 N.A. Tax Provisions 8 13 17 15 12 20% Net Profit 42 56 66 46 43 7% 21
Income Breakdown 175 Net Profit %21 212 %85 Income Breakdown %86 %84 Interest Income %4 %4 %5 %3 %5 %4 %9 %6 %7 %2 %5 %5 Commissions Dividend Other 2009 2010 2008 2009 2010 Net Interest Income Breakdown 54% 60% 50% 46% 40% 50% 2008 2009 2010 Liquid Assets Loans 14% Commission Income Breakdown 30% 27% 15% 16% 16% 36% 40% 41% 16% Brokerage 15% 33% 2008 2009 2010 Fund Mng. Corporate Finance Non cash Loans 22
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% 2008 2009 2010 NIM 2008 2009 2010 2008 2009 2010 Spread 3.0% 2.6% 4.13% 4.07% 4.12% 2.3% 2008 2009 2010 2008 2009 2010 23
Stock Performance 600 TSKB XU100 XBANK 500 2005 2010 growth %99 400 300 2010 YTD yield %71 200 100 0 MCAP (mn TL) %71 %25 %20 1,900 1,700 1,500 1,300 1,100 100 900 700 500 300 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 1 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 Eylül 1 Ekim 1 Kasım 1 0 0 0 24 MCAP Foreigners MCAP (mn TL) Foreigners Share(%) 2005 920 52% 2009 1,092 38% 2010 1.827 53%
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
Contact Us Financial Institutions & Investor Relations Meclisi Mebusan Caddesi No: 81 Fındıklı 34427 Istanbul Turkey Email: fi_ir@tskb.com.tr Tel: +90 (212) 334 5124 5194 5129 Fax: +90 (212) 334 5234 Internet: www.tskb.com 26