TEB

2012 2Q

2Q Highlights

• Significant growth above sector averages in both loans and deposits

• Improvement in the L/D ratio amounting to 20 percentage points y-on-y

• Focus on core banking, share of loans and deposits ≈70%

• Comfortable CAR, ready for Basel II

• Normalisation in COR due to soft landing in the economy, stil very comfortable at 0.9%

Balance Sheet

•Very satisfactory improvement in the overall efficiency; improved income generation vs succesfully controlled costs

•Higher volumes and improved margins contributing to higher NII

•Fees and commissions income on the rise, %58 higher y-on-y

•Opex under control, 2 % y-on-y increase

•Quarterly C/I ratio down to 62% from 84% a year ago,

Income Statement

2

Assets Growth

Asset Composition Liability Composition

Balance Sheet composition reflects the commitment to core banking

Source: TEB, BRSA Consolidated Financials

3

Assest grow 6%

quarterly, loans

8% and deposits

6% as well

10% 13% 13% 13% 13%

17% 16% 14% 13% 12%

67% 65% 69% 70% 71%

30.06.11 30.09.11 31.12.11 31.03.12 30.06.12

Liquid Assets Marketable Securities Loans

38,7

45

42,3

62

40,4

54

40,5

17

43,1

52

16% 9%

-5% 0% 7%

30.06.2011 30.09.11 31.12.11 31.03.12 30.06.12

Total Assets Variance

49% 54%

60% 61% 61%

33% 29%

24% 21% 22%

6% 7% 7% 6% 5%

11% 10% 11% 11% 11%

30.06.11 30.09.11 31.12.11 31.03.12 30.06.12

Deposit Funds Borrowed

Other Liabilities Shareholders Equity

Balanced growth among the business lines and in retail composition

Loan Composition (Q o Q, bank only)

Source: TEB, BRSA Bank- Only Financials

Breakdown of retail loans (bank-only)

4

37% 47% 46% 46%

8%

8% 8% 8%

39% 30% 31% 31%

16% 15% 16% 16%

2010 2011 2011 1Q 2011 2Q

Credit Cards

Consumer

Vehicle

Housing

Corporate; 28%

SME; 44%

Retail; 28%

2012 1Q

Corporate

SME

Retail

Corporate; 27%

SME; 45%

Retail; 28%

2012 2Q

LoB Cross Sel

Corporate 5.5X

SME 4.5X

Retail 3.8X

Private 4.8X

81

%

78

%

79

%

80

%

80

%

19

%

22

%

21

%

20

%

20

%

24,227 25,649 25,652 26,357

28,347

30.06.11 30.09.11 31.12.11 31.03.12 30.06.12TL Loans FX Loans Total Loans

1.10% 0.90%

1.75%

2.25%

4.66%

3.00% 2.80%

2.28%

4.90%

3.70% 3.60% 3.50%

5.18%

3.58%

2.70% 2.63% TEB

Sector Average

Increasing share of retail carrying the NPL ratio to sector averages

Source: TEB, BRSA Bank-Only Financials

5

Non-Performing Loans as a % of Total Loans

Coverage: 68%

Balanced distribution among industries

Source: TEB, BRSA Bank-Only Financials

Other 10.91%

Textile 7.19%

Metal 7.85%

Consumer 22.73% Construction 8.52%

Food, Beverage & Tobacco 7.46%

Wholesale/Retail 6.22%

Tourism 5.65%

Chemicals 3.82%

Misc. Services 5.94%

Transportation Veh. 2.67%

Agriculture 3.52% Machinery

3.40% Mining 2.25%

Elect. & optical appliances 1.88

Growth in deposits amounting up to 40% on a y-on-y basis

Time/Demand Deposit Composition

Source: TEB, BRSA Bank Only Financials

TL/FX Deposit Composition

7

Loans/ Deposits ratio

135%

119%

112%

111%

113%

30.06.11 30.09.11 31.12.11 31.03.12 30.06.2012

Corporate; 29%

SME; 18%

Retail; 36%

Private; 16%

2011 1Q

Corporate

SME

Retail

Private

Corporate; 24%

SME; 19%

Retail; 39%

Private; 18%

2011 2Q

68

%

66

%

64

%

66

%

65

%

32

%

34

%

36

%

34

%

35

%

17,937

21,594 22,887 23,721

25,135

30.06.11 30.09.11 31.12.11 31.03.12 30.06.12

TL Deposit FX Deposit Total Deposit

19

%

17

%

18

%

15

%

15

%

81

%

83

%

82

%

85

%

85

%

3,441

3,777 4,026

3,548 3,703

30.06.11 30.09.11 31.12.11 31.03.12 30.06.12

Demand Deposit Time Deposit Demand Deposit

Comfortable capitalization ratio, ready for Basel II

Source: TEB BRSA Bank-only and Consolidated Financials

Year 2005 2006 06/2007 11/2007 2008 2009 2010 2011**

Dividend Paid* 9.415 18.743 207.017

% 16,28% 32,42% 18,81%

Bonus Issue - - 23.500 445.000 - - -

% - - 30,71% 445% - - -

Rights Issue - 18.700 - 210.000 345.000 - -

% - 32,35% - 210% 45,69% - -

Previous Paid-in

Capital 57.800 57.800 76.500 100.000 755.000 1,100,00.00 1,100,00.00 1,100,00.00

Current Paid-in Capital 57.800 76.500 100.000 755.000 1,100,00.00 1,100,00.00 1,100,00.00 2,204,390.00

Capital Increases and Dividend Payments

*The year indicates the date of payment

(Thousand TL)

** Paid in capital increased due to the merger with Fortis Bank Turkey, shares issued were exchanged with Fortis shares at the excahnge rate of 1.0518

Capital Adequacy Ratio

8

13.00% 13.30%

16.47% 16.95%

13.64% 13.98% 13.99% 13.88%

14.30% 14.88%

17.65% 17.70%

14.43% 14.23% 14.23%

14.21%

Consolidated Bank-Only

Ouarterly NIM improvement counter balances the normalization in the COR

Source: TEB, BRSA Bank-Only Financials

Net interest income / Average Interest

Earning Assets

9

0.4%

0.5% 0.6%

0.6%

0.7%

0.4%

0.7% 0.6%

0.6%

0.9%

30.06.11 30.09.11 31.12.11 31.03.12 30.06.12

Cost of Risk (cumulative) Cost of Risk (quarterly)

4.6%

4.7% 4.9%

5.3%

5.4%

4.6%

4.8%

5.2% 5.3%

5.6%

30.06.11 30.09.11 31.12.11 31.03.12 30.06.12

Net interest Margin (cumulative) Net interest Margin (quarterly)

C/I ratio on the declining trend implying better efficiency

Cost / Income Ratio Cost/Income Ratio (restructuring costs not included)

Restructuring costs:

56.7 millon was booked in 2010

67.8 million was booked in 2011

5.1 million was booked in 2012 1Q

6.3 million was booked in 2012 2Q

Total : 135.9 million TL

Source: TEB, BRSA Bank-Only Financials

10

74%

77% 74%

66% 64%

80% 82%

67% 66%

61%

30.06.11 30.09.11 31.12.11 31.03.12 30.06.12

Cost / income Ratio (cumulative)

79% 81% 78%

67% 65%

84% 84%

70% 67%

62%

30.06.11 30.09.11 31.12.11 31.03.12 30.06.12

Cost / income Ratio (cumulative) Cost / income Ratio(quarterly)

Summary Balance Sheet- BRSA, Consolidated

Source: TEB, BRSA Consolidated Financials

11

(Million TL) 30.06.2011 31.12.2011 30.06.2012

Liquid Assets 4,013 5,148 5,779

Marketable Securities 6,745 5,674 5,062

Loans 26,111 27,782 30,631

Other Assets 1,876 1,850 1,680

Total Assets 38,745 40,454 43,152

Deposit 19,132 24,097 26,438

Funds Borrowed 8,543 7,450 8,000

Repo 3,733 1,105 453

Bonds Issued 0 249 400

Subordinated Debt 511 712 790

Other Liabilities 2,438 2,410 2,358

Shareholders Equity 4,388 4,431 4,713

Total Liabilities 38,745 40,454 43,152

Summary Income Statement –BRSA, Consolidated, Quarterly

Source: TEB, BRSA Consolidated Financials

12

(Million TL) 30.06.11 31.03.12 30.06.12

Net Interest Income 357.3 434.3 480.4

Gains/Loss From Derivatives and FX position -15.3 -29.6 -29.2

Securities Trading Gain/ Loss 8.6 -0.7 5.2

Net Fee&Commissions 97.5 126.7 138.9

Other Income 20.9 16.9 42.8

Net Banking Income 469.1 547.5 638.2

Loan Provision Expense -24.7 -37.1 -77.4

Net Operating Income 444.4 510.4 560.8

Dividend Income

Other Operating Expense -382.7 -363.7 -390.8

Tax Provisions -19.1 -36.0 -41.3

Net Profit 42.6 110.7 128.6

A Major Player of the Turkish Financial Services Market

TEB Investment 6th largest brokerage &

investment house of

Turkey with 3.6% market

share as of 2Q 2012

TEB Asset Management

8th largest asset

management company

with 4.5% market share

as of 2Q 2012

TEB Leasing

3rd largest leasing

company in Turkey with

10.2% market share as

of 2Q 2012

TEB Factoring

3rd largest factoring

company in Turkey with

9 % market share as of

1Q 2012

TEB Cetelem

3rd largest consumer

finance company in

Turkey with 5.4%market

share as of 2Q 2012

1,219 M loans provided

as of 1Q 2012

TEB Kosovo Operative since January

2008, with 22 branches, as

of 2Q 2012

Loans: €201M

Deposits: € 209M

TEB Arval Operative since

October 2007, 5%

market share as of 2Q

2012

TEB

Full range of banking services

TEB N.V. “Turkish specialist” in

the EU market, total

asset size is EUR 733

mio as of 2Q 2012

13

BNPP Cardif Insurance

A major global player for personal insurance

Turkish operations fully owned by BNP ParibasCardif (S&P AA rated),100% subsidiary of BNP Paribas

%3 market share in Turkey in protection insurance & pension

TEB in numbers

As of 30/06/2012

Number of Clients: 4 million

Number of Branches: 510

Total Staff: 9173

Cities where the combined bank has branches

14

Van

Konya

Nevşehir

Kırşehir

Sinop Bartın

Çankırı

Bilecik

Tokat

Bitlis

Hakkari Şırnak

Siirt

Karaman

Balıkesir

Afyon

Uş ak

Aydın

İzmir

Edirne

Kırklareli

İstanbul Tekirdağ

Çanakkale

İzmit

Yalova

Zonguldak

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

Sakarya

Bayburt

Kıbrıs

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

TEB is present in 60 cities out of 81

Ratings of TEB

15

FITCH Rating Outlook

Short Term LC F3

Long Term LC BBB Stable

Short Term FC F3

Long Term FC BBB- Stable

Individual bb+

National AAA (tur) Stable

Support 2

MOODY'S Rating Outlook

Banking Financial Strength Rating D+ Negative

Long Term FC Bank Deposits Ba2/NP Stable

Long Term LC Bank Deposits Baa3/P-3 Stable

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 is strictly confidential and may not be

reproduced, distributed or published for any purpose.

16