2019 Year-EndInvestor Presentation

Albaraka Türk Participation Bank11 February 2020

Agenda

1 Financial Highlights

2 Market Comparison

3 Appendix

Albaraka Turk – 2019 Year-End at a Glance3

Balance Sheet Key Ratios

(Million TRL) 2018 2019 Y-Y (%) % 2018 2019Y-Y

(bps)Total Assets 42.223 51.392 21,7

Total Funded Credits (Net) 26.185 29.749 13,6CAR 14,66 14,97 31

Total NPLs 1.889 2.222 17,6

Deposits (incl. Interbank) 28.623 39.769 38,9Tier 1 9,98 10,66 68

Shareholder’s Equity 3.261 3.822 17,2

NPL 6,88 7,19 31Income Statement

(Million TRL) 2018 2019 Y-Y (%)

Net Profit Share Income 1020 823 -19,3Provisioning

Stage III47,31 42,61 470

Net Fees & Commissions 198 300 51,3

Provisions for Loan Loss 608 790 30,0 Net Profit ShareMargin

2,86 2,10 -76

Operating Expenses* 1.161 1.112 -4,2

Net Profit 134 63 -52,7Cost/Income 59,93 55,89 -404

* including personnel expenses

218237

134

64

2016 2017 2018 2019

Net Profit

62019 Main Highlights (Million TRL)

2,86

2,62 2,28

1,58

2,10

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Net Profit Share Margin*

* Trailing for last 4 quarters

4

42.22444.594 43.886

46.295

51.392

26.185 26.49827.771

27.14029.749

28.623 30.62833.045 34.794

39.769

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Total Assets Total Funded Credits Total Collected Funds

7,56 % 8,40

2,42 %2,26

4,68 % 4,31

2018 2019

Common Equity Tier I Additional Tier I Additional Tier II

14,97 %14,66 %

Funded Credits; 57,9%

Securities Portfolio;

12,1%

Other Liquid

Assets*; 25,2%

Other Assets; 4,7%

1.2301.789 2.062 1.895 2.015

619

549

1.435 1.5621.994

1.117

1.195

1.615 2.024

2.234

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Available for sale Held to Maturity Other Marketable Securities

2.875

5.1125.481

6.243

7Asset Composition

Composition of Total Assets (2019) Liquid Assets (Million TRL)

5

Total Securities Portfolio (Million TRL) Securities Yield (%)

8,7510,06

11,6012,9212,84

Q4'19Q3'19Q2'19Q1'19Q4'18

(*) Profit share income received from securities for the last 4Q/5Q average securities

13.466 15.510 12.663 15.266 17.215

31,9%34,8%

28,9%33,0% 32,5%

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Liquid Assets % of Total Assets

*Liquid Assets includes Cash and Cash Equivalents, Financial Assets Measured at Fair Valuethrough Profit/Loss, Financial Assets Measured at Fair Value through Other ComprehensiveIncome and Derivative Financial Assets.

* Other Liquid Assets includes Cash and Cash Equivalents andDerivative Financial Assets

2.965

325102

-35 182

2018 Profit ShareIncome

Fees &Comm

TradingIncome

Others 2019

4.032

6Operating Performance Breakdown

Net Profit Share Income (Quarterly) (Million) Key Movements in Income (Million TRL)

Cost & Yield Movement (%)

6

10,09% 10,58% 10,76% 10,33% 10,92%

2,86% 2,62% 2,28%1,58%

2,10%

6,78%7,17% 7,46% 7,61% 7,13%

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Credit Yield Net Profit Share margin

Cost of Collected Funds

4.607

158196

144108

376

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

217 293

395

-68 -95 -96

Fees and Commissions Received Fees and Commissions Paid

149

2018

Net Fees and Commission Income (Million)

2017

198

300

2019

% 33,5

% 51,3

*USD equivalent

Total Funded Credits (including financial leasing, million) Yield on Performing Credits (%)

Profit share income received from credits for the last 4Q/4Q average credits

Funded Credits Portfolio

Q4’18 Q1’19 Q2’19 Q3’19 Q4’19

Corporate Credits 41.7 41.9 47.1 47.5 48.9

SME Credits 48.1 48.6 44.2 43.9 42.1

Retail Credits 10.2 9.6 8.7 8.6 9.0

48%

35%

17%

1%

TRL

USD*

EUR*

Other

Composition of Total Funded Credits (%) Currency Composition of Total Funded Credits* (2019)

*Including USD & EUR indexed creditsAccording to BRSA definition

7

Q4’18 Q3’19 Q4’19 QoQ Y-Y

TL Credits, TL 12,092 12.492 14.205 13,7% 17,5%

FC Credits, $* 1,933 2.222 2.259 1,7% 16,8%

FC Indexed, $* 735 379 364 -4,0% -50,6%

Total Credits, TL 26,185 27.141 29.749 9,6% 13,6%

15,1%

19,4%

10,4%11,4%

6,4% 5,9%

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Yield on TL Loans, adjusted, trailingBlended Yield, adjustedYield on FX Denominated Loans, trailing

73,7% 77,5% 78,6% 78,4% 80,9%

19,4% 15,2% 14,1% 13,8%11,9%6,9% 7,4% 7,3% 7,7%7,2%

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Group I Group II Group III

29.103

6,887,36 7,31

7,74

7,19

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Gross Funded Credits by Groups (including financial leasing, million)

216 218 213183

231

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Cost of Risk (bps)

NPL Ratio (%)

Specific provisions for credits for last 4Q/ 5Q average credits

Including financial leasing & accruals and rediscounts

Provisioning (Stage III)

Asset Quality8

27.442

8931.069 1.104 1.152

947

47,3%52,3% 51,9% 52,2%

42,6%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19Lifetime ECL Impaired Credits (Stage 3) (Million TRL) Provisioning Ratio (%)

27.778 28.49130.881

NPL Formation Trend (Quarterly)

Asset Quality9

439

315

154

243

529

253

78 70 164

64186

237

84 79 465

272

369

128119

4Q'18 Q1'19 Q2'19 Q3'19 Q4'19

Additions (million TRL) Recoveries (million TRL)

Net NPL Formation (million TRL) Net NPL Formation Rate (bps)

NPL Inflow Sector Distribution (2019)

3,2%14,0%

19,9%

11,4%

18,1% 7,2%

26,2%

Communication Construction&Real Estate*Manufacturing OthersTrading Hotels & RestaurantsEnergy

26,4%

14,0%

36,6%10,5%

1,3%

11,2%

Manufacturing OthersConstruction&Real Estate* TradingTransportation Energy

Stage II Credits Sector Distribution (2019)

3.665

2.222

4.246

1.513

85

947

Stage 2 Stage 2 Stage 3 Stage 3

Risk amount Collateral Provision

Stage II-III Coverage (Million TRL)

*Includes construction of power plant projects

677

*Includes construction of power plant projects

24% 25% 16% 15% 13%

23% 23%27% 27% 30%

53% 52% 57% 58% 57%

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19Fund Borrowed* Current Accounts Participation accounts

Composition of Total Liabilities (2019,%) Composition of Funding Base (Million TRL)

77,4%

11,5%

7,4%3,6% Funds Collected

WholesaleFunding

Shareholders'Equity

Others

45.697

22%

37.452

Funding Profile10

*Fund Borrowed includes Funds Borrowed , Borrowings from Money Market and Subordinated Loans

40.881

(Million TRL) 2018 2019 Y-Y Growth %

Funds Collected (incl. Bank deposits) 28.623 39.769 38,9

Wholesale Funding 8.828 5.928 -32,9Funds Borrowed 6.852 4.535 -33,8

Syndicated Loans 1.665 - -Wakala 1.211 979 -18,2Issued Lease Certificates & Sukuk 3.463 2.743 -18,5

Other 514 813 24,5Sub-Ordinated Debt (Tier 2) 1.204 1.375 14,2Interbank 772 18 -97,6

Shareholders’ Equity 3.261 3.822 17,2Paid in Capital 900 1.350* 50,0Other Liabilities 1.510 1.873 24,0Total Liabilities 42.224 51.392 21,7

39.978

205

250

0 100 200 300

2025

>2030

Tier 1 Sukuk (Perpetual) Tier 2 Sukuk

Maturity Profile of Liabilities (Million USD)

39.231

*The registration process of capital increase has been continuing.

7,13%

7,61%7,46%7,17%6,78%

14,67%

15,26%14,11%12,63%

11,31%

2,14%2,35%2,50%2,56%

2,47%

0,30%0,40%0,68%0,94%

1,21%

Q4'19Q3'19Q2'19Q1'19Q4'18

Blended TL FC Precious Metal

37

37

20

6

TRL

USD

EUR

Others

Total Funds Collected (Million TRL)

Cost of Funds Collected*

*USD equivalent of FC accounts

*Profit share expense to depositors for the last 4Q/5Q average participation accounts

Currency Composition of Funds Collected (2019,%)

Maturity Composition of Funds Collected (2019,%)

35

19

39

4 4

Current Acc.

Up to 1 month

Up to 3 months

Up to 1 year

>1year

Funding Profile (Collected Funds)

11

2018 2019 Y-Y

Funds Collected 28.623 39.769 38,9%

Current Accounts 8.729 13.902 59,3%

Current Accounts TL 2.810 4.199 49,5%

Current Accounts, FC, $ 1.121 1.637 46,0%

Participation Accounts 19.895 25.867 30,0%

Participation Accounts TL 8.970 10.497 17,0%

Participation Accounts FC, $ 2.069 2.593 25,3%

Q4’18 Q1’19 Q2’19 Q3’19 Q4’19Growth (%)

Y-Y

Letter of Guarantee 8.575 8.304 8.251 8.192 8.718 1,7%

Letter of Credit 1.230 1.423 1.328 1.180 1.330 8,2%

Others* 242 424 409 347 383 158,6%

Total: 10.046 10.151 9.998 9.722 10.431 3,8%

Off Balance Sheet Composition (%) LGs*-to-Total Assets

20,3%

18,6% 18,8%

17,7%17,0%

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Guarantees & Sureties (TRL million)

*Revocable credit limits not included.

Off Balance Sheet Growth12

*Below 20% of LGs to Total Assets is targeted

69

4060 55

69

10

7

108

10

21

53

30 3721

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

LG LC Others

12.444 20.648 14.832 12.67513.753

14Income- Cost Dynamics

13

(Million TRL)

Y-Y Notes

2018 2019 %

Net Profit Share Income 1,020 823 -19,3%Profit Share income increased by 10,7% While Profit share Expenses incresed by 26,0% YoY. Downward cost of funding in 2020 is expected to lead stronger Net Profit Share Income.

Net Fee Income 198 300 51,3%

Circa 51,3 % Y-o-Y expansion in this line item is mostly driven by higher POS commissions and custody services, despite the deceleration in economic activity leading to slower growth in Funded Credits.

Net Trading Income 359 324 -9,8%The FX gains has declined due to the decrease in demand caused by FX tax and closing a long position related to Tier I issuance of 205 mln $.

Other Income 361 543 50,6% Provision reversals from stage 2 credits and write – off amount led to other operating income being above last year.

Provisioning 608 790 30,0%

Provisioning expenses related to Stage 3 credits put pressure on the provisioning expenses in 2019 Nevertheless, our total coverage ratio dropped to 50.9%, while Stage-3 coverage ratio decreases to 42.6%.

Personnel Expenses 536 667 24,5% Impact of CPI &compensation for people leaving the Bank.

Other Costs 625 445 -28,8% Headline cost growth remained far below 11,84% inflation.

Net Profits 134 63 -52,7

Agenda

1 Financial Highlights

2 Market Comparison

3 Appendix

Percent % 2018 2019

Albaraka TürkParticipation

BanksBanking Sector Albaraka Türk

ParticipationBanks

BankingSector

CAR 14,66 15,76 17,27 14,97 18,04 18,43

NPL Ratio 6,88 3,74 3,81 7,19 4,53 5,27

Provisioning Ratio (Stage 3) 47,31 63,30 68,32 42,61 63,88 65,17

Loan/Deposits 91,48 96,62 117,25 74,80 78,21 106,00

Asset Yield 8,29 9,64 10,49 8,24 10,14 11,11

Asset Spread 2,72 3,23 3,37 2,04 3,49 3,80

Net Profit Share Margin 2,86 4,21 4,26 2,10 3,99 4,41

Op Costs / Avg. Assets 2,89 2,10 1,84 2,43 2,11 1,99

Cost/Income* 59,93 35,70 34,39 55,89 35,84 36,65

Credits / Branches (000‘TRL) 113,848 121,472 219,358 129,344 145,358 250,464

Staff / Branches 17,34 14,08 17,96 16,48 13,60 17,99

CA / Deposits 30,49 32,75 21,32 34,96 33,53 24,71

*Cost: Operating Costs, Income: NPSI, Net Fees and Commissions Income, Other Income Net Trading Income

Financial Ratios - Sector Comparison15

Agenda

1 Financial Highlights

2 Market Comparison

3 Appendix

(Million TRL) 2018 2019 Growth

Cash and Balances with Central Bank 5.918 8.796 48,6%Banks 5.217 4.187 -19,7%Financial Assets 2.949 6.226 111,1%Funded Credits 26.185 29.749 13,6%

Cash Credits 25.174 28.415 12,9%NPL 1.889 2.222 17,6%Provisions (Stage III) 893 947 5,9%Net Financial Leasing Receivables 380 244 -35,8%

Associates 40 70 76,5%Fixed Assets 687 1.547 125,2%Assets Held For Sale and Investment 650 124 -80,8%Other Assets (inc. Tax Assets) 578 692 19,8%

Total Assets 42.224 51.392 21,7%

Funds Collected 28.623 39.769 38,9%Funds Borrowed 6.852 4.535 -33,8%Debts 2.192 1.756 -19,9%Provisions (inc. Taxes) 90 135 49,3%Tier II Sukuk 1.204 1.375 14,2%Shareholders’ Equity 3.261 3.822 17,2%

Capital 900 900 0,0%Capital Reserves (inc. Premium) 846 1.345 59,0%Profit Reserves 1.301 1.430 9,9%

Total Liabilities 42.224 51.392 21,7%

Summary Balance Sheet17

(Million TRL) 2018 2019 Growth

Profit Share Income 3.020 3.344 10,7%

Profit Share Expense 2.000 2.521 26,0%

Net Profit Share Income 1.020 823 19,3%

Net Fees and Commissions Income 198 300 51,3%

Fees and Commissions Received 293 395 34,9%

Fees and Commissions Paid 95 96 0,7%

Net Trading Income 359 324 -9,8%

Other Operating Income 361 543 50,6%

Total Operating Profit 1.401 1.322 -5,6%

Provisions for Loan Losses and Other Receivables 608 790 30,0%

Personnel Expenses 536 667 24,5%

Other Operating Expenses 625 445 -28,8%

Operating Profit Before Tax 168 87 -48,2%

Tax Provision 35 24 -30,9%

Net Profit 134 63 -52,7%

Summary Income Statement18

THANK YOU

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Investor RelationsAddress : Saray Mahallesi Dr.Adnan Büyükdeniz Caddesi No:6 34768 Ümraniye/ İSTANBULE-mail : yim@albarakaturk.com.trTel : +90 216 666 03 03Fax : +90 216 666 16 20 Internet : www.albaraka.com.tr