1

2

Source: Datastream, Turkstat

Gross Domestic Product 6

77

77

7

64

7

77

2 83

2

87

1 9

50

93

5

86

2

86

3

85

1

78

9

75

4

2007 2009 2011 2013 2015 2017 2019

GDP (billion USD)

9,6

56

10

,93

1

8,9

80

10

,56

0

11

,20

5

11

,58

8

12

,48

0

12

,11

2

11

,01

9

10

,88

3

10

,60

2

9,6

32

9,1

27

2007 2009 2011 2013 2015 2017 2019

Per capita GDP (USD)

3

Source: Datastream, Turkstat

Economic Growth 0

.9

-4.7

8.5

11

.1

4.8

8.5

5.2

6.1

3.2

7.5

2.8

0.9

4.5

2008 2010 2012 2014 2016 2018 Q1-20

Annual Real GDP Growth (%)

-12

-7

-2

3

8

2014 2015 2016 2017 2018 2019 2020

Contributions to Growth (2009=100 chain linked volume index % points)

Stock Change Net ExportsInvestment ConsumptionGDP

4

Leading Indicators

40

50

60

70

80

90

100

110

120

Jun 16 Jun 17 Jun 18 Jun 19 Jun 20

Confidence Indices

Real sector confidence index

Economic confidence index

Consumer confidence index

5 (*) As of April-May Source: Datastream, Turkstat

-25.5*

-30

-25

-20

-15

-10

-5

0

5

10

15

Q12013

Q12014

Q12015

Q12016

Q12017

Q12018

Q12019

Q12020

Calendar Adjusted Industrial Production

(yoy, % change)

8.9 9.2

12.0 11.9

10.0

8.5 8.8 9.1

10.3 10.2

12.0

9.9

12.8 13.1

13.8

45 44 45 47 47 47 49 49 51 52 52 53 53 52

48

2006 2008 2010 2012 2014 2016 2018 2020

Labor Market Indicators* (%)

Unemployment

Labor Participation Rate

(*) Seasonally adjusted figures. Latest figure as of April 2020. Source: Datastream, Turkstat

Labor Market

6

20 20 20 21 23 23

24 25 26 27 27 29 28 28

26

2006 2008 2010 2012 2014 2016 2018 2020

Employment* (million persons)

Source: Turkstat, Ministry of Treasury and Finance

Fiscal Discipline

32.7 31.4

28.8 27.6 28.3 28.3

30.4 33.1

2012 2013 2014 2015 2016 2017 2018 2019

General Government Debt Stock (% GDP)

Maastricht criterion: 60%

7

1.9

1.0 1.1

1.0 1.1

1.5

2.0

2.9

2012 2013 2014 2015 2016 2017 2018 2019

Budget Deficit (% GDP)

Maastricht criterion: 3%

Exports

8

16

1

16

7

15

1

14

9 16

4 17

7

18

1

16

6

2013 2014 2015 2016 2017 2018 2019 2020*

Exports (billion USD)

3.7

3.8

3.9

4.1

4.3

4.8

5.2

5.4

9.8

13.9

Non knitted and crocheted goods

Articles of iron and steel

Plastic and articles

Precious stones

Mineral fuels and oils

Knitted and crocheted goods

Iron and steel

Electrical machinery andequipment

Boilers and machineries

Motor vehicles

Exports* (% of total)

(*) As of May 2020 12-month cumulative.

Source: Datastream, Turkstat

(*) As of May 2020 12-month cumulative

Source: Datastream, Turkstat

Exports

2007 % of

total

1. Germany

2. UK

3. Italy

4. France

5. Russia

6. Spain

7. US

8. Romania

9. UAE

10. Netherlands

11.2

8.0

7.0

5.6

4.4

4.3

3.9

3.4

3.0

2.8

The share of first 10 53.6

2020* % of

total

1. Germany

2. UK

3. Iraq

4. US

5. Italy

6. France

7. Spain

8. Netherlands

9. Israel

10. Russia

9.2

6.2

5.7

5.4

5.1

4.2

4.1

3.4

2.6

2.5

The share of first 10 48.4

Top 10 Export Markets

48.3

40.3

13.2

17.9

2006 2008 2010 2012 2014 2016 2018 2020*

Exports (% of total)

EU

Near and Middle East

9

Imports 2

61

25

1

21

4

20

2

23

9

23

1

21

0

20

6

2013 2014 2015 2016 2017 2018 2019 2020*

Imports (billion USD)

2.2

2.4

2.8

5.1

5.6

7.1

7.2

7.8

10.8

17.5

Optical products

Pharmaceuticalproducts

Organic chemicals

Motor vehicles

Plastic and articles

Iron and steel

Electrical machineryand equipment

Precious Stones

Boilers and machineries

Mineral fuels and oils

Imports* (% of total)

10 (*) As of May 2020 12-month cumulative

Source: Datastream, Turkstat

Imports

2007 % of total

1. Russia

2. Germany

3. China

4. Italy

5. US

6. France

7. Iran

8. UK

9. Switzerland

10. Ukraine

13.8

10.3

7.8

5.7

4.8

4.6

3.9

3.2

3.1

2.7

The share of first 10 59.9

2020* % of

total

1. Russia

2. China

3. Germany

4. US

5. Italy

6. France

7. South Korea

8. India

9. UK

10. Iraq

10.4

9.7

9.3

6.0

4.3

3.1

2.8

2.8

2.7

2.3

The share of first 10 53.5

Top 10 Import Markets

15.9

72.7

11.0

2007

Capital Goods

Intermediate Goods

Consumption Goods

13.1

76.3

10.3

2020*

Composition of Imports (%)

11 (*) As of May 2020 12-month cumulative

Source: Datastream, Turkstat

(*) As of May 2020 12-month cumulative

Source: CBRT, Ministry of Culture and Tourism

Tourism

17 19

23 23 23

25 25

28 30

27

19

22

25

30

25*

2006 2008 2010 2012 2014 2016 2018 2020

Tourism Revenues (USD bn)

12

0.8

0.9

1.1

1.2

1.6

1.6

2.0

2.1

4.2

5.7

Azerbaijan

Netherlands

Iraq

Ukraine

Iran

Georgia

UK

Bulgaria

Germany

Russia

Number of Tourists (million persons)

2020*

2019

2018

Number of Tourists

2017: 32.4 mn

2018: 39.5 mn

2019: 45.1 mn

2020*: 36.6 mn

Source: Turkstat, New Economic Program (2020-2022)

Savings & Investments

1.7

5.7

8.8

5.5 6.6

4.6 3.6 3.8

5.6

3.4

-0.2

1.1 0.7

-0.1

21.4 21.3 22.5 22.8 23.2

24.4 24.8 24.5 25.4 26.2 27.0 27.0

28.5 30.6

23.0

27.0

31.3

28.3 29.8 29.0 28.3 28.3

31.0 29.6

26.8 28.1

29.2 30.5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Investments and Savings (% of GDP)

Saving Gap

Savings

Investments

New Economic Program

Forecasts

13

(*) Long term capital movements are sum of banking and real sectors’ long term net credit and bonds issued by banks and the Treasury

(**) Short-term capital movements are sum of banking and real sectors' short term net credits and deposits in banks.

Source: CBRT, Turkstat

Current Account Balance

-5.7 -5.5 -5.1

-1.8

-5.8

-8.9

-5.5 -5.9

-4.2

-3.2 -3.1

-4.8

-2.6

1.1

2006 2008 2010 2012 2014 2016 2018

Current Account Balance (% of GDP)

-60

-40

-20

0

20

40

60

80

100

2012 2014 2016 2018 2020

Financing of CAD (12-month cumulative, billion USD)

Foreign Direct and Long Term Investments*

Portfolio and Short Term Investments**

Current Account Deficit

14

Source: CBRT

Capital Flows

-20

-15

-10

-5

0

5

10

15

20

25

30

May 17 Nov 17 May 18 Nov 18 May 19 Nov 19 May 20

Portfolio Inflows (12-month cumulative, billion USD)

Debt Securities

Equity Securities

15

0

4

8

12

16

20

May 17 Nov 17 May 18 Nov 18 May 19 Nov 19 May 20B

inle

r

Foreign Direct Investment Inflows (12- month cumulative, billion USD)

(*) Latest figure as of June 2020

Source: CBRT, Datastream

Monetary Policy

12,62

4

8

12

16

20

24

28

2012 2013 2014 2015 2016 2017 2018 2019 2020

Annual CPI Inflation* (%)

4

8

12

16

20

24

28

Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20

Interest Rates (%)

Interest Rate Corridor

One Week Repo Rate

Late Liquidity Window

CBRT Weighted Average Cost of Funding

16

(*) Latest figure as of July 16

Source: Datastream

Financial Markets

80

90

100

110

120

130

140

150

160

Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20

USD vs Local Currencies (Dec. 31, 2018 = 100)

Turkey Brazil

Russia Indonesia

South Africa

60

80

100

120

140

160

Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20

Equity Indices (Dec. 31, 2018 = 100)

Turkey Brazil

Russia Indonesia

South Africa

no

min

al d

ep

recia

tio

n in

lo

ca

l cu

rre

ncy

17

(*) Latest figure as of July 16 Source: Datastream

Financial Markets

0

100

200

300

400

500

600

700

Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20

5Y CDS Spreads (bps)

Turkey Brazil

Russia Indonesia

South Africa

18

0

5

10

15

20

25

Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20

5Y Government Bond Yields (%)

Turkey Brazil

Russia Indonesia

South Africa

19

(*) Excluding the banks under the administration of the SDIF

Source: BRSA

Basic Indicators

8 10

15

28

25

13

2004 May 2020

Number of Banks*

Public

Foreign

Domestic Private

51 48

58

31

3

26

38 43

2004 May 2020

Share in Total Assets (%)

Public

Foreign

Domestic Private

20

Source: BRSA

Basic Indicators

12

7,3

91

13

8,1

69

15

0,4

62

16

7,2

12

18

2,1

00

18

3,6

14

19

0,5

86

19

4,6

17

20

0,7

45

21

3,4

31

21

6,0

63

21

6,7

22

21

0,1

12

20

7,5

32

20

6,9

74

20

3,8

39

20

3,0

24

2004 2006 2008 2010 2012 2014 2016 2018 May2020

Number of Domestic Staff

21

6,1

77

6,5

21

7,2

56

8,0

71

9,2

50

9,5

26

10

,00

0

10

,44

0

10

,98

1

11

,90

3

12

,12

5

12

,18

5

11

,66

4

11

,50

8

11

,49

3

11

,30

0

11

,25

9

2004 2006 2008 2010 2012 2014 2016 2018 May2020

Number of Domestic Branches

Source: BRSA, Turkstat

Basic Indicators

23 17 17

12 13 0 16

20

13 15 13 14 12 19 20

15

50

57

40

30 29

7

34 30

16

32

19 20 17 21

14 11

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Nominal GDP Growth (%)

Loan Growth (%)

228

776

2004 May 2020

Assets (bn USD)

X3.4

74

465

2004 May 2020

Loans (bn USD)

X6.3

143

437

2004 May 2020

Deposits (bn USD)

X3.1

34

80

2004 May 2020

Equity (bn USD)

X2.3

22

Source: BRSA

Balance Sheet Items

23

32

60

40

17

15 13

12 10

2004 May 2020

Asset Composition (%)

Other Assets

Cash+Banks

Securities

Loans

62 56

11

11

0 4

15 10

11 18

2004 May 2020

Liability Composition (%)

Other Liabilities

Shareholder's Equity

Securities Issued

Banks

Deposits

Latest figure as of July 10, 2020

Source: BRSA

Deposits

-20

-10

0

10

20

30

40

50

2015 2016 2017 2018 2019 2020

Deposit Volume (annual % change)

TL Deposits

FX Deposits in USD Terms

Total Deposits (exchange rate adjusted)

49.9

40

45

50

55

60

65

2015 2016 2017 2018 2019 2020

Share of TL Deposits in Total (%)

24

Latest figure as of July 10, 2020

Source: BRSA

Loans

-20

-10

0

10

20

30

40

50

2013 2014 2015 2016 2017 2018 2019 2020

Loan Volume (annual % change)

TL Loans

FX Loans in USD Terms

Total Loans (exchange rate adjusted)

65.2

55

59

63

67

71

75

2015 2016 2017 2018 2019 2020

Share of TL Loans in Total (%)

25

Source: BRSA, EBA

Non-Performing Loans 6

.0

4.7

3.7

3.5

3.7

5.3

3.7

2.7

2.9

2.8

2.9

3.1

3.2

3.0

3.9

5.4

4.5

2004 2006 2008 2010 2012 2014 2016 2018 May

2020

Non-performing Loan Ratio (%)

0.5 0.9 1.3 1.3 1.3 1.4 1.8 1.9 2.0 2.0 2.3 2.5 2.7 3.0 3.2 3.3 3.7 4.1 4.5 4.8 5.4

6.5 6.7 7.2

19.4 35.2

SwedenLuxembourg

NorwayGermany

UKFinland

DenmarkLatvia

NetherlandsBelgiumAustriaFrance

EU AverageMaltaSpain

IrelandSloveniaRomaniaHungary

PolandTurkey

PortugalItaly

BulgariaS. Cyprus

Greece

NPL Ratio (%, 2019)

26

(*) As of May

Source: BRSA

Loans by Sectors

0.2

0.3

4.6

7.0

5.3

2.4

6.0

8.8

5.7

4.0

1.8

2.2

3.6

3.6

5.8

6.1

7.1

8.4

13.1

21.8

Defense and Public Administration

Financial Intermediation

Agriculture, Hunting and Forestry

Tourism

Real Estate Brokerage, Renting and Business Act.

Transportation, Storage and Communication

Electricity, Gas and Water Resources

Construction

Wholesale and Retail Trade

Manufacturing industry

Loans by Main Industry Groups*

Share (%)

NPL (%)

27

Source: CBRT

Net FX Position of NFCs

10.4 10.1 -3.6 -0.7 -5.6 -0.1 5.8 2.2 7.7 1.4

4.8 9.0

-77 -99

-114 -136

-167 -180 -195 -207

-220 -208 -186 -179 -66

-88

-118

-136

-173 -180

-189 -204

-212 -207

-181

-170

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 April 2020

Net FX Position of the Non-Financial Sector (bn USD)

Long Term Net FX Position

Short Term Net FX Position

Net FX Position

28

Source: CBRT

FX Assets & Liabilities of NFCs

51 82 102 122 155 172 175 178 184 171 153 148 81

76 77

81 82 81 85 93 102 104

100 98

15 18

20 22

30 30 30 33 42 45

51 46

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 April 2020

FX Liabilities of NFCs (bn USD)

Import Payables

External Loans

Domestic Loans

57 62 55 61 64 67 69 68 78 75 84 88 9 11 11 12 13 13 12 13

16 20 20 14

13 13 16 16 17 22 18 19 21 17

19 19

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 April 2020

FX Assets of NFCs (bn USD)

Securities

Direct InvestmentAbroadExport Receivables

Deposits

29

(*) External debt maturing within 1 year or less regardless of the original maturity.

Source: CBRT

Short Term External Debt Stock

111

198 187

332

108 101

76 74 73

117 97

123 142 140

106

138

89 76

2012 2013 2014 2015 2016 2017 2018 2019 May2020

12-month Long-Term Debt Roll Over Ratio

(%)

Banking Sector Non-banking Sector

May 2020 (*)

(bn USD) Share (%)

Central Bank 19.4 11.4

General Government 6.3 3.7

Banks 76.4 45.1

Credits 28.7 16.9

FX Deposits 21.0 12.4

Bank Accounts 11.2 6.6

Branches and Affiliates Abroad 3.9 2.3

TRY Deposits 15.4 9.1

Branches and Affiliates Abroad 7.6 4.5

Other Sectors 67.5 39.8

Trade Credits 46.8 27.6

Other Credits 20.7 12.2

Public 1.2 0.7

Private 19.4 11.4

Total 169.5 100.0

30

(*) Latest figure as of July 10, 2020

Source: BRSA

Non-Deposit Sources

-80

-60

-40

-20

0

20

40

60

2012 2013 2014 2015 2016 2017 2018 2019 2020

Net FX Position* (billion USD)

Net On Balance Off Balance

20.5

14.6

12.1

2005 2007 2009 2011 2013 2015 2017 2019

External Borrowings of the Banks (outstanding amount, billion USD)

Eurobonds Syndication Loans Securitization Loans

Double Investment

Grade

(May 2013-Sep.2016)

31

(*) As of May 2020.

Source: BRSA, EBA

Capital Adequacy Ratio

23.7

21.9

18.9 18.0

20.6

19.0

16.6

17.9

15.3

16.3 15.6

15.6

16.9

17.3 18.4

19.4*

2005 2007 2009 2011 2013 2015 2017 2019

Capital Adequacy Ratio (%)

Legal Limit of 8%

Target Rate of 12%

15.6

15.8 16.4

17.3 17.4 17.4 17.7

18.3 18.4 18.4 18.5

19.0 19.3 19.3 19.4 19.9 19.9

20.5 21.6 21.7 21.7

23.0

SpainHungaryPortugalGreece

ItalySlovakia

PolandGermany

AustriaTurkeyFrance

S. CyprusBelgium

EU AverageSloveniaBulgaria

LatviaCzech Rep.

CroatiaMalta

IrelandNetherlands

Capital Adequacy Ratio (%, 2019)

32

Source: The Bank Association of Turkey

Alternative Banking Channels

7,227

12,256

2011 Q1 2020 Q1

Internet Banking (number of active customers, thousand persons)

X1.7

230

52,481

2011 Q1 2020 Q1

Mobile Banking (number of active customers, thousand persons)

X228

33

Profitability

(*) Net interest income / average total assets

Source: BRSA

34

5.4%

4.3%

3.5%

4.1%

3.7% 3.5% 3.5%

3.6% 3.8%

3.9% 3.8%

4.9%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q12020

NIM*

36%

41%

44%

41% 43%

45% 46%

40% 38%

34% 36%

31%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q12020

Cost / Income Ratio

Profitability

Source: BRSA 35

2.5%

1.7% 1.8%

1.6%

1.3% 1.2%

1.5% 1.6%

1.4%

1.2%

1.4%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q12020

ROAA

20.1%

15.5% 15.7%

14.2%

12.3% 11.3%

14.3%

15.9% 14.8%

11.5%

14.2%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q12020

ROAE

Stock Exchange Performance

Latest figure as of July 16

Source: Datastream

60

80

100

120

140

160

180

200

220

240

260

30

40

50

60

70

80

90

100

110

120

130

2013 2014 2015 2016 2017 2018 2019 2020

Bin

ler

Stock Exchange Performance (thousands)

BIST-100 Index Banking Sector Index (right axis)

36

Banking Sector Comparison

Source: BRSA, Turkstat, ECB, Eurostat

63

66

74

83

87

87

87

96

98

10

1

10

5

10

5

10

4

10

5

2006 2008 2010 2012 2014 2016 2018

Banking Sector’s Assets in Turkey (% GDP)

272

163

38

159

105

62

5

60

Assets/GDP

Loans/GDP

Housing Loans/GDP

Deposits/GDP

Banking Sector’s Comparison with Euro Area

(%, 2019)

EA-19

Turkey

37

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