investor relations / investor presentation

Investor Relations / Investor Presentation

August 2013


Agenda

1 Turkish Economy

2 Turkish Banking Sector: An attractive investment opportunity

3 Garanti Overview and Key Investment Highlights

4 Garanti 1H13 Results per BRSA Consolidated Financials

2


Moderate economic growth, downward risks still continue

• 17th largest economy across the globe in 2012 • A period of sustainable growth • Rapid recovery in 2010-2011, slowdown in

2012, slight recovery expected in 2013 on the back of increasing domestic demand

• Much lower or even negative contribution from external demand in 2013

Slight Recovery Expected After the Slowdown in 2012

5,3%

9,4% 8,4% 6,9%

4,7%

0,7%

-4,8%

9,2% 8,8%

2,2% 3,8%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E

GDP Growth

Inflation (CPI) 18,4%

9,3% 7,7%

9,7% 8,4%

10,1% 6,5% 6,4%

10,4%

6,2% 6,8%

27,2% 22,3%

14,0%

21,2% 16,6%

16,5%

8,9% 7,1%

11,0%

6,2% 8,0%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E

Real Interest

Inflationary Pressures Become More Apparent

Benchmark Bond Rate

Source: Turkish Statistical Institute, Undersecretariat of Treasury E:Garanti Estimate

3

• Successful switch from hyperinflationary economy to price stability in the recent years

• More recent developments in currency basket and interest rate create upward risks on inflation

• Considering increasing inflationary pressures CBT follows tight liquidity policy and utilizes interest rate corridor more flexibly and actively

• Inflation is expected to accelerate slightly to

~6.5%-7% in 2013


Ongoing strength in fiscal balance while external balance widens

78% 74%

68% 60%

53% 47% 40% 40%

46% 42% 39% 36% 35%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E

Maastricht criteria 60%

Government Indebtness

EU Defined Government Debt Stock

4

• Government indebtness far below Maastricht Criteria • Government debt has started to decline just

after the crisis and the downward trend is expected to continue in the coming years

• Strong domestic demand and relatively weak external demand led CAD/GDP ratio to reach its record level after the crisis.

• In line with the weakening domestic demand and strong export performance external balance improved throughout 2012.

• Relatively higher growth in 2013 will result in

slight expansion in CAD. Hence, macro prudential measures will likely remain in place for financial stability purposes.

Current Account Deficit*

Current Account Balance/GDP

Source: Turkish Statistical Institute, Undersecretariat of Treasury E:Garanti Estimate * Figures including tourism revenue revisions announced by TurkStat, as of 2012 YE

-2,5% -3,6%

-4,5% -6,0% -5,8% -5.4%

-2,0%

-6,2%

-9,7%

-6,0% -7,3%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E


Agenda

1 Turkish Economy




5


Underpenetrated market with strong growth potential

6

Significant long-term growth potential

backed by attractive demographics &

underpenetrated market

• 59% of the 76mn population < age of 355

• Loans/GDP: 52% vs. 116% in EU

• ROAE: ~17%3 58%

39% 13%

90% 51% 52%

345%

116% 116%

Total Assets / GDP Total Cus. Deposits / GDP Total Loans / GDP

Turkey - 2002 Turkey - 1Q13 Euro Area - 1Q13

Well-regulated and strictly monitored

1

High and sustainable Real GDP growth1

90

110

130

150

170

190

210

2002 2005 2008 2011 2014 2017

EU27 LATAM CEEMEA TURKEY

Rea

l GD

P G

row

th (

Reb

ased

)

Penetration Ratios4

2nd largest banking system in CEE2 with an asset size of US$728bn3

2002-1Q13 CAGR: 19%

1 Source: IMF. CEEMEA countries include Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovakia, Slovenia, South Africa. LATAM Countries include Argentina, Brazil, Colombia, Ecuador, El Salvador, Mexico, Paraguay, Peru 2 Source: EBF Banking Sector Statistics Database 2011, ranking per total assets 3 BRSA Monthly data for commercial banks as of March 2013. US$/TL:1.785 4 Source: ECB, TurkStat, BRSA for commercial banks 5 Source: TurkStat


• Deposits fund 57% of assets1

• Comfortable level of Loans/Deposits at 102%1

Highly liquid…

7

Deposit-heavy funding structure

Comfortable liquidity levels

Continuous access to international funding sources

Liquidity Adequacy Ratios2 well-above required levels

• Total Liquidity Ratio -- Weekly: 164%; Monthly: 121% • FC Liquidity Ratio -- Weekly: 154%; Monthly: 115%

Banking Sector External Debt Roll-over Ratio2

1 BRSA monthly data for commercial banks, as of March 2013 2 CBRT Financial Stability Report, November 2012. Liquidity Ratios are as of October 2012.

2

75,8

60

100

140

Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12


…well-capitalized and underleveraged

8

High solvency ratio

15,1% 13,5%

14,3% 13,3%

Turkey LATAM CEEMEA EU27

Tier-I Ratio1

(4Q12)

Low leverage 7,3x 7,9x 9,2x

14,1x

Turkey LATAM CEEMEA EU27

Leverage1

1 Source: Latest data from the IMF-FSI database. Represents country averages most of which are based on 4Q12 figures 2 BRSA monthly data as of March 2013, commercial banks only

3

(4Q12)

Basel II CAR2: 16.8%

High ROAEs2 :~17%

despite the low leverage

(1Q13)

(1Q13)


Standing out for its asset quality

1 Source: Latest data from the IMF-FSI database, most of which are based on 4Q12 figures 2 Source: Latest data from the IMF-FSI database. Represents country averages most of which are based on 4Q12 figures 3 BRSA weekly data for commercial banks, as of March 29, 2013

9

Sustained sound asset quality

• No exposure to any toxic assets or problematic sovereign assets

• NPL Ratio3: 2.9% in Turkey

• High cash coverage @ 75%3

• Established & prudent underwriting procedures

Non-performing loans/Total gross loans1

NPL ratio2

4

(1Q13)

EU 27 9,2%

CEEMEA 10.2%

LATAM 2.8%

TURKEY 2,8%

1,5%

2,5%

3,5%

4,5%

5,5%

6,5%

7,5%

8,5%

9,5%

10,5%

2006 2007 2008 2009 2010 2011 2012

0

5

10

15

20

25

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Differentiating itself even in a challenging environment

Decelerating pace in GDP growth moderates lending growth

In this environment

Turkish banking sector’s • High liquidity • Strong capitalization • Low leverage and • Sound asset quality

remain as its main strengths

10

Global macro picture remains as the highest risk factor

Regulatory changes supporting financial stability; pressure profitability

5


Agenda

1 Turkish Economy




11


Garanti: Pre-eminent Banking Franchise

2nd largest private bank by asset size

Robust balance sheet highly liquid, well-capitalized & low risk

#1 in ordinary banking income proven track record of sustainable banking income generation

Focused on relationship banking with broad

geographical coverage and wide multi-channel distribution network

Most valuable company on the BIST by market capitalization

Note: BRSA Consolidated Financials as of June 30, 2013 US$/ TL = 1.905 as of June 30, 2013 * As of July 29, 2013

Total Assets

US$ 104 bn

12

1H13 Net Income

US$ 1.1 bn

ROAE

21%

Branch network

969*

# of customers

~12 mn*

Basel II CAR

15%


Integrated financial services company focused on retail

13

~ 9.2 mn credit cards

~ 7.2 mn debit cards

>540k POS

>3,600 ATMs

~ 1.9k customers*

~ 40 sales force1

Major Turkish &

multinational

operations

~43k customers*

~920 sales force1,2

Annual sales

>TL10 mn or

Transaction Volume

>TL600k

Financial Subsidiaries

~10.4 mn customers*

~ 2,445 sales force1

Personal Financial Assets:

>$500k


TL50k-$500k


<TL50k

Affluent : 0.1%

Upscale: 4.7%

Mass Market: 95.2%

~ 1.5 mn customers*

~ 2,130 sales force1,2

Annual sales TL3 mn-TL10 mn

Annual sales TL500k-TL3 mn

Annual sales <TL500k

Note: Payment Systems’ data as of June 2013. POS figure includes shared POS *As of June 30, 2013 1 Sales force is field only, data as of 31 July, 2013 2 555 people within the sales force are responsible for serving both SME and Commercial banking.

Consumer Payment Systems

Corporate Commercial SME

Medium: 8%

Small: 24%

Mass: 68%

Asset Contribution: 5.3%

Asset Contribution: 2.0% Asset Contribution: 0.4%



Asset Contribution: 0.0%


State-of-the-art, proprietary IT platform -- fully aligned with the business

• Top down fast decision making and strong communication

• Centralized management reporting systems, enabling management to take timely actions

• Advanced CRM applications

• Paperless banking environment

14

• Fully aligned IT processes & infrastructure with business strategy

• One of the largest private internal IT service providers in Turkey

• Most up-to-date IT infrastructure

• Tightly integrated and fully in-house developed, custom-fit IT solutions

• Uninterrupted transaction capability and infrastructure security

• Reputation as “innovator”

• Continuous investment in technology since 90’s


Strong brand and reputation as a product and service innovator

15

Bonus Trink - credit card with contactless chip technology

Cardless remittance via ATMs

• First financial company in Turkey using call steering system in call center

• First cash management account in Turkey (the award - winning ELMA)

• First chip-based installment credit card loyalty program in Turkey (Bonus

Card)

• First credit card offering air miles (Shop & Miles)

• First credit card with the concept of personalization (Flexi)

• First direct debit system in Turkey

• First web-based supplier financing system (Garanti Discount) in Turkey

• First inventory financing system in Turkey

• First gold financing system in Turkey

• First P2P mobile money transfer in Turkey (CepBank)

• First cash withdrawal with coins in Turkey

• First cardless bill payment via ATM in Turkey

• First NFC enabled SIM card “Bonuslu Avea” in the world

• First gold-saving credit card in the world (Golden Bonus Card)

• First-of-its-kind financial service leading the future of banking business

and the revolution of conventional banking approach. (iGaranti)

E-trader Application

Mobile Banking

In 1H 2013 , 36 new products were launched

544 Products in total

Golden Bonus Card

Interactive mobile-only platform


Extensive distribution network via strong branch coverage…

16

487 592

730 792

863 918 936 961

2006 2007 2008 2009 2010 2011 2012 1H13

Number of Branches

2x

#1 in branch openings since 2006

~450 new branch additions

1.25x of its closest peer

61% was outside of

Istanbul, Ankara and Izmir

96% Geographical Coverage

99% GDP Coverage

Presence in 78 Cities

Note: Represents net branch openings figure are as of December 2012. Source:Turkish Banking Association


… and effective utilization of digital channels (I/II) -- Targeted solutions for new customer segment: Digital Customers

17

Total Bankable Population

40%*

Digital customers

Simple

Fast

Personalized

Anytime anywhere

accessible channels

to appeal

this new segment

Turkey is the 7th biggest user of

Facebook in the world

Garanti targets this new segment via; Simple Fast Personalized Anytime anywhere

accessible channels

+

Garanti Bank Application Store • 2.7mn downloads • World’s first banking app for

Windows 8 • E-trader app: Leading trading

platform in Turkey

+

*Source: McKinsey & Company 2011

1 Source: Socialbakers, last visit on February 21, 2013 2 Source: Information and Communications Technologies Authority, Quarterly Reports

Social Media platforms to shape

new era in CRM -- Turkey is the 6th

biggest user of Facebook1

18x

Increase in the # of mobile

internet users in last 2.5 years2

Omni Channel Strategy Providing seemless experience across all channels (branches, ATMs, Internet banking, Mobile Banking, Call Center)

+ 33% of customers use self-service channels

+ Product sales through ADCs GPL: 24% Time Deposit:13%


… and effective utilization of digital channels (II/II) -- 80% of financial transactions carried through digital channels

18

SME Customers:

1.4Mn

Online Banking

Mobile Banking

Social Media

Call Center

ATMs

Omni Channel Strategy Providing seemless experience across

all channels

Every 1 out of 3 internet transaction is via Garanti Internet Banking

~2.5 mn active users

• >170 type of transactions

• Serving non-bank customers

through cardless transactions

• Cash deposits/withdrawals: 105%

• ~60 mn customer contact/yr • Centralized branch calls

• Special offerings a first-of-its-kind application in Europe

• Money transfer

• Consumer loan application via secure full form

#1 in mobile banking >500k mobile banking users

45% in financial transactions

market share

A new banking experience targeting socially active & connected customers

• Digital Wallet – credit, debit, identity and loyalty cards under one roof

• Location based offers based on check-ins from foursquare

• First in Europe: speech recognition, speech command


Growing Revenues • Outperform sector in selective products • Leader in ordinary banking income generation*

• ROAE : 21% ; ROAA :2.4%

• Net F&C Income market share ~16%*

-- highest in the sector

Adding New Customers

• Extensive branch network • Tripled in the last 10 years • 96% TR coverage • To open 30 - 40 branches in 2013

• Customer Centricity Index • Making a difference in customer

experience with smart business processes

Delighting Customers

• Innovative customer – oriented products and services

• Multi-channel CRM tools offering effective & timely solutions

• Integrated channel strategy • Internet & Mobile Banking • ATM • Call Center • Branch Network

Improving Process & Service

• Technologically advanced banking systems • Competent HR & dynamic sales force

• Extensive training • Incentive schemes

• Operational efficiencies • Superior employee productivity • 99% centralization ratio • Cross-sell

Customer

Customer-centric growth strategy aligned with…

* As of March 2013, Garanti figure is per bank-only data for fair comparison with sector Sector figure is based on BRSA monthly data for commercial banks 19


…key strengths feed the differentiated business model…

• Leading market shares across all lucrative products

• Impressive track record and attractive platform for future growth

• Sophisticated customer segmentation model

• Solid asset quality

• High quality, multi-channel distribution

• Business-integrated IT

• Product, service and technology innovator

• High quality employee base & proven management team

• Strong shareholder support -- Jointly controlled by Doğuş Group and BBVA

20


…result in sustainable outperformance

21

2000 1H13 Growth CAGR

Assets (TL Bn) 6.6 177.2 27x 30%

Market Share 6.6% 12.9% +6.2pps

Rank(1) #4 #2

Loans (TL Bn) 2.5 106.2 42x 35%


Rank(1) #5 #2

Customer Deposits (TL Bn) 3.4 96.2 37x 34%


Rank(1) #5 #2

Shareholders’ Equity (TL Bn) 0.6 21.5 35x 33%

Net Profit (TL Mn) 205 3,070* 15x* 25%*

ROAE 2006-1H13 Avg. >20%

Note: Figures are based on BRSA Bank-only financials for fair comparison. 1 Among private banks 2 Rankings are as of 1Q13. Market shares are as of 1H13, calculated based on bank-only financials. Asset market share is as of March 2013 as sector data for June 2013 has not been announced. *2012 Bank only Net Income used in calculations for fair comparison


Agenda

1 Turkish Economy




22


2Q 2013 Macro Highlights

Mixed outlook on global growth with

extreme volatility and uncertainty as Fed sees stimulus winding down

Investment grade ratings suppressed

under changing global dynamics,

less optimism on growth,

weaker currency, rising inflation,

external vulnerabilities and political tension

• “Tapering” of the accommodative Federal Reserve monetary policy and market’s perception that the Fed’s quantitative easing program would end sooner than had been expected triggered a sharp sell-off in EM bonds, equities, and currencies.

• The eurozone economy remained relatively stagnant suggesting the worst of the recession has passed.

• Global volatility and weak growth in China weighed heavily on EM equities and commodity prices. Gold prices were down 23% as Brent oil finished the quarter down 7%.

• The Fed's exit plans added to worries about slowing growth across the emerging world, rising interest rates, currency weakness and instability in major markets like Brazil and Turkey.

• 1Q GDP growth was 3% YoY -- moderate improvement but weaker positive outlook o growth dynamics changed: positive support by domestic demand led by government expenditures as

external demand contributed negatively o ongoing contraction in private sector investment expenditures

• Rising during April and May, 12m current account deficit increased to US$ 53.6 billion as of May -- uncertainties remain regarding improvement in domestic demand and global economic growth signaling limited external demand contribution

• Yearly inflation rose to 8.3% at the end of 2Q13 from 7.3% at 1Q13 -- depreciation in TL is an upward risk, however, uncertainty regarding the growth outlook may limit the negative impact.

• CBRT gradually cut policy rate by 100 bps from 5.50% in 1Q13 to 4.5% as of 2Q13 and continued to utilize multiple tools in order to support financial stability – moved the interest rate corridor lower by 100 bps, increased reserve requirement on FC liabilities and Reserve Option Coefficient for holding FC instead of TL.

• After having depreciated by 0.7% against the currency basket in 1Q13, TL depreciated with an acceleration by 2.6% in 2Q13.

• Benchmark bond yield, that fell below 6.4% at the end of 1Q13 and further to below 4.7% in May, increased to 7.5% at the end of the 2Q13 and hit 9.6% on July 11, a record high since 2Q12.

23


1H 2013 Highlights

Lending strategy -- Chasing profitable growth opportunities

• TL lending -- solid growth with selective market share gains. Main drivers:

- lucrative retail products : Mortgages (10% q-o-q ), GPLs (9% q-o-q) & Auto loans (6% q-o-q)

- mid&long- term TL working capital loans

• FC lending: Awaited pick-up started in 2Q, with project finance loans in energy & utilities

- Growth: 2Q13: 4% vs. 1Q 13: 1%

Actively shaped & FRN-heavy securities portfolio – Securities/Assets: 18%

Solid & well-diversified funding mix providing comfortable liquidity

• Deposits fund 57% of assets:

• ~23% of total customer deposits are demand deposits

• Opportunistic utilization of alternative funding sources to effectively manage costs & duration mismatch

Risk-return balance priority

• Sound asset quality – declining new NPL inflows, continued progress in collections

• Prudent coverage and provisioning levels

Well-capitalization

• Basel II CAR: 15.2%, Leverage:8x

Healthy profit generation

• Comparable* net income up by 30% y-o-y; ROAE: 21%; ROAA: 2.4%,

• Well-defended margin

• Outstanding performance in sustainable revenue growth -- #1 in net fees & commissions

• Strict cost discipline

24 * Please refer to slide 18 for comparable net income analysis


1.782

2.185

1H12 1H13

962

1.181

820

1.005

Net Income (TL million)

Solid profit on the back of strong balance sheet

1Q12

Quarterly drop due to timing of account maint. fees. Robust Y-o-Y growth @ 27%

Flattish quarterly specific CoR. Higher general provisioning mainly due to increased originations & TL depreciation against FX

Continued progress in collections

On track with budget

ROBUST PROFITABILITY

Based on actual monthly inflation readings

Well-defended NII 23%

2Q12 1Q13 2Q13

Capital gain realizations

25

(TL Million) 1Q13 2Q13 D QoQ

(+) NII- excl .income on CPI linkers 1,470 1,498 2%

(+) Net fees and comm. 663 644 -3%

(-) Specific & General Prov. - exc. one-off on specific prov.

-336 -381 13%

= CORE BANKING REVENUES 1,797 1,761 -2%

(+) Income on CPI linkers 517 395 -24%

(+) Collections 74 62 -16%

(+) Trading & FX gains 236 153 -35%

(+) Other income -before one-offs 126 133 6%

(-) OPEX -before one-offs -1,022 -1,128 10%

(-) Other Provision & Taxation -392 -339 -13%

(-) One-offs -155 -31 n.m

(+) NPL sale 0 35 n.m

(-) Free Provision Reversal 55 5 n.m

(-) Payment Systems tax penalty expense 0 -24 n.m

(-) Saving Dep. Insurance Fund expense 0 -13 n.m

(-) Various tax fine provisions -50 0 n.m

(-) Additional prov. to keep coverage ratio 0 -35 n.m

(-) Competition Board Fine -160 0 n.m

= NET INCOME 1,181 1,005 -15%


179,8 185,8

197,4

2012 1Q13 2Q13

Total Assets (TL)

108,5 112,9

119,5

40,5 40,9 40,9

2012 1Q13 2Q13

TL FC (USD)

Total Assets (TL/USD billion)

Increasingly customer-driven asset composition

Other IEAs 7,9%

Non-IEAs 16,4%

Securities 18,2%

Loans 57,5%

Composition of Assets1

Reserve req. 7.6%

Others 8.8%

1H13

2012

1 Accrued interest on B/S items are shown in non-IEAs 2 Performing cash loans

10%

6%

IEA / Assets: 84%

26

Loans/Assets

58% Increasing weight of

customer driven assets

Other IEAs 8,2%

Non-IEAs 17,1%

Securities 20,0%

Loans 54,7%

Reserve req. 7.4%

Others 9.6%

IEA / Assets: 83%

3%

Growth:

Loans2

2Q: +10% 1Q: +5%

Securities 2Q: -6% 1Q: +3%


2Q12 3Q12 2012 1Q13 2Q13

86% 91% 90% 91%

14% 9% 10% 9% 10%

2Q12 3Q12 2012 1Q13 2Q13TL FC

39.1

90%

Trading 1,3% AFS 96,4%

HTM 2,4%

2Q12 3Q12 2012 1Q13 2Q13

41.3

Total Securities (TL billion)

CPI: 39%

FRNs: 26%

CPI: 28%

FRNs: 30%

TL Securities (TL billion)

FRNs: 46%

FRNs: 33%

FC Securities (USD billion) Total Securities Composition

Actively shaped & FRN-heavy securities portfolio

1 Based on bank-only MIS data 2 Excluding accruals Note: Fixed / Floating breakdown of securities portfolio is based on bank-only MIS data. *YtD adj. growth is calculated with 2012 YE USD/TL exchange rate of 1.76. QoQ adj. growth is calculated with 1Q13 USD/TL exchange rate of 1.785.

39.3

CPI: 31%

FRNs: 30%

35.6 35.7 35.3

FRNs: 53%

3.1

2.0

(5%) (1%)

(5%) (0%)

27

Securities2/Assets

18% hovering around its

lowest levels (7%)

(6%) (34%)

2.1

FRN mix1 in total

64%

40.4

3% 2%

36.3

12%

CPI: 32%

FRNs: 30%

FRNs: 52%

2.3

41.6

3%

37.8

4%

CPI: 34%

FRNs: 29%

2.1

(8%) FRNs: 51%

(6%)

• Shrinkage in TL securities q-o-q, due to redemptions & capital gain realizations

• Security additions to the

portfolio, to timely & strategically manage the book, fell short of offsetting the disposals & redemptions

(36%)

Unrealized loss (pre-tax)

as of June-end ~TL 270mn

Currency Adj.Growth*

YtD: (4%) QoQ: (7%)

(3%) (3%)

(13%)


2Q12 3Q12 2012 1Q13 2Q13

2%

Total Loan1 Growth & Loans by LOB2 (TL million)

Accelerated lending growth in 2Q, with sustained focus on profitability

1 Performing cash loans 2 Based on bank-only MIS data 3 Sector data is based on BRSA weekly data for commercial banks only *YtD adj. growth is calculated with 2012 YE USD/TL exchange rate of 1.76. QoQ adj. growth is calculated with 1Q13 USD/TL exchange rate of 1.785.

95.1 96.9

Market share3:

11.0% at 2Q13 vs.

10.9% at 1Q13 & 10.8% at YE12 TL (% in total) 58% 58% 58% 59% 59%

FC (% in total) 42% 42% 42% 41% 41%

US$/TL 1.780 1.772 1.760 1.785 1.905

21%

3%

99.5 55,2 56,7 58,1

61,9 68,0

2Q12 3Q12 2012 1Q13 2Q13

TL Loans1 FC Loans1 (in US$)

23%

+ 22,4 22,7 23,5 23,7 24,6

2Q12 3Q12 2012 1Q13 2Q13

10%

Market share 3 :

17.6% at 2Q13 vs.

18.2% at 1Q13 & 18.3 % at YE12

Corporate

Commercial

SME

Credit Cards

Consumer

16.0%

37.4%

12.6%

12.9%

21.1%

16.0%

39.0%

13.4%

12.4%

19.2%

15.9%

38.3%

12.8%

13.0%

20.0%

16.4%

37.9%

12.1%

13.1%

20.5%

3% 3%

10%

3% 1%

4%

104.2

5%

7%

1%

28

Main drivers:

> Lucrative retail products

> Mid & long-term TL working capital loans with relatively higher yields

> Project Finance loans in energy & utilities

16.3%

37.4%

12.6%

12.8%

20.9%

114.9

15%

17%

5% 10%

Currency Adj.Growth*

YtD: 12% QoQ: 7%


1,2 1,2 1,3 1,3 1,4

2,1 2,1 1,8 1,8 2,0

2Q12 3Q12 2012 1Q13 2Q13

2.8

QoQ June’13 Rank4

Mortgage 13.7% #1

Auto 17.1% #2

General Purpose5 10.3% #2

Retail1 12.6% #2

31,2 32,9 34,4 36,2 39,6

12,5 12,5 12,5 12,6 13,6

2Q12 3Q12 2012 1Q13 2Q13

Consumer Loans

53.1

43.7

Retail Loans1 (TL billion)

3.2

Auto Loan (TL billion)

3.3

9,7 10,3 10,8 11,7 12,9

9,3 9,2 9,2 9,2 9,8

2Q12 3Q12 2012 1Q13 2Q13

22.7

19.5

General Purpose Loan5 (TL billion)

Lucrative retail loans led the acceleration in lending growth

Commercial Installment Loans

10,1 10,5 11,0 11,7 12,9

0,6 0,6 0,9 0,6 0,7

2Q12 3Q12 2012 1Q13 2Q13

Mortgage (TL billion)

10.7 11.9

Market Shares2,3

1 Including consumer, commercial installment, overdraft accounts, credit cards and other 2 Including consumer and commercial installment loans 3 Sector figures are based on bank-only BRSA weekly data, commercial banks only

4 As of 1Q13, among private banks

5 Including other loans and overdrafts

4% 3%

21%

4% 6%

1% (5%) 2%

2% 3% 5%

3% 20%

29

45.4

11.2

19.0

3.1

4%

46.9

4%

6%

12.3

3.2 9%

20.0

9%

48.8 13.6

10%

20.9

3.4

• Rational pricing stance supporting margins

• Generating cross-sell & increasing customer retention

27% 13%

15%

8% 14%


32,4

39,5

1H12 1H13

10,8 11,5 12,0 12,4

13,4

2Q12 3Q12 2012 1Q13 2Q13

No. of Credit Cards (thousand) Credit Card Balances (TL billion)

Solid market presence in payment systems -- good contributor to sustainable revenues

Market Shares

25%

6% 4% 4%

Issuing Volume (TL billion)

31,0

34,7

1H12 1H13

Acquiring Volume (TL billion)

12% 22%

YTD ∆ June’13 Rank

Acquiring (Cumulative)

+8 bps 19.2% #2

Issuing (Cumulative)

-86 bps 17.0% #2

POS1 +28 bps 18.0% #1

ATM -43 bps 9.2% #3*

9.052 9.131

9.214

Jun'12 Mar'13 Jun'13

161

30

9%

1 Excluding shared POS *Among private banks

12%

Turkey’s largest Credit Card Platform:

Bonus Card

Strong player in the market with the ultimate aim

of creating cashless society

Garanti debit card spending >2x of the sector

83


1,4% 1,5% 1,8% 1,9% 1,7%

2,4% 2,8% 2,7% 2,8% 2,6%

2Q12 3Q12 4Q12 1Q13 2Q13

Global Crisis & Hard Landing

Recovery Soft Landing

2,4%

4,3% 2,9%

1,8% 2,3% 1,9%

3,4%

5,2% 3,6%

2,6% 2,8% 2,7%

2008 2009 2010 2011 2012 2Q13

1 NPL ratio and NPL categorisation for Garanti and sector figures are per BRSA bank-only data for fair comparison 2 New NPL additions from GBM, GBI and Garanti Bank Romania 3 Garanti NPL sale in 2012 amounts to TL218 mn, of which TL188 mn relates to NPL portfolio with 100% coverage and the remaining TL31 mn being from the previously written-off NPLs; NPL sale in 2Q13 amounts TL 314mn of which TL310mn relates to current NPL portfolio and the remaining TL4 mn being from the previously written-off NPLs

Sound asset quality -- declining NPL inflows, successful collection performance & debt sale in 2Q supported the NPL ratio NPL Ratio1

2,7%

4,8% 3,4%

2,4% 3,0% 2,8%

3,9%

5,9% 4,6%

3,7% 4,1% 3,9%

Sector Garanti

Sector w/ no NPL sales & write-offs Garanti excld.NPL sales & write-offs

1,6% 1,7% 1,8% 1,9% 1,6%

2,0% 2,2% 2,1% 2,2% 2,1%

2Q12 3Q12 4Q12 1Q13 2Q13

4,8% 5,0% 5,2%

5,4%

3,7%

5,2% 5,4% 4,9%

5,3% 4,6%

2Q12 3Q12 4Q12 1Q13 2Q13

Retail Banking (Consumer & SME Personal) 23% of total loans

Credit Cards 13% of total loans

Business Banking (Including SME Business)

64% of total loans

NPL Categorisation1

Net Quarterly NPLs (TL billion)

Sector Garanti

NPL sale effect on NPL ratio

+30bps

Garanti (Cons.)

2.4% 4.1% 3.1% 2.1% 2.6% 2.3%

165 263 245

333 258

27

41 41

31 80

60

54

246

-43 -75 -111 -174 -175

-310

New NPL

Collections

NPL sale

29

-1803

276

408

2Q12 3Q12 4Q12 1Q13

2

2

-83

4Q12

Garanti: TL 176mn

Romania: TL 70mn

NPL inflows resulting from few commercial files with strong collateralization;

3Q12

GBI: TL 54mn

2Q12

Garanti: TL 60mn

Write-off

2

188

2Q13

-148

2

2

3

-13

-1

31


1 Sector figures are per BRSA weekly data, commercial banks only 2 Additional general provisions, defined by law, for loans extended before 2006 in the amount of TL150mn, TL 60mn of which is set aside in 4Q12 and remaining at equal amounts within the following three years

Comfortable coverage and provisioning levels -- higher originations weighed on general provisions

General Specific

Quarterly Loan-Loss Provisions (TL million)

*NPL inflows resulting from few commercial files with strong collateralization;

Additional

provisions of

TL44mn set aside

for alignment of

coverage ratio to

pre-NPL sale level

Garanti (Cons)

78% 77% 78% 78% 79%

Garanti 81% 81% 81% 81% 81%

Sector1 81% 75% 76% 75% 74%

Coverage Ratio

Cumulative Gross CoR

130 bps excld. additionally set aside provision to lift the coverage

up to pre-NPL sale level 138bps

on a reported

basis

High general provisioning in 2Q vs. 1Q due to > Strong loan originations & TL depreciation against FX

2Q13

None

vs.

52 70 106 105

184

60 161 194

157 231

197

52 14

217

32

44

2Q12 3Q12 4Q12 1Q13 2Q13

278

*

2

297

541

*

336

* *

425

2Q12

Garanti: TL 52mn

Additional

provisions of

TL32mn set aside

for alignment of

coverage ratio to

pre-NPL sale level

3Q12

GBI: TL 14mn

4Q12

Garanti: TL 141mn

Romania: TL 70mn

GBI: TL 6mn

*

32

Quarterly Specific CoR

down to 71bps

from 90bps in 1Q13

when excld. additionally set aside provision to lift the coverage up

to pre-NPL sale level


8,0% 8,4% 8,0%

11,3% 12,0% 11,1%

11,7% 12,2% 12,7%

44,9% 42,0% 43,9%

7,2% 7,8% 6,3%

14,7% 14,2% 13,6%

2,3% 3,3% 4,5%

2Q12 2012 2Q13

Consumer+SME / Total Deposits :

2Q12 3Q12 2012 1Q13 2Q13

99.7 97.8 104.8 112.0

FC

TL

48%

52%

97.0

47%

53%

49%

51%

Total Deposits (TL billion) Composition of Liabilities

Funds Borrowed

Repos

Time Deposits

Other

SHE

Demand Deposits

Bonds Issued

Solid funding mix reigned by deposits & reinforced with diversified funding sources

IBL: 69%

IBL: 67%

IBL: 68%

7%

7%

(1%)1

15%

46%

54%

(6%)

4%1

33

13%

1 Growth in USD terms

46%

54%

7%

(0%)1

19,1 19,8 20,6 21,8 23,9

0,9 0,8 1,3 1,1 1,2

2Q 12 3Q 12 2012 1Q13 2Q13

20.0

Customer Demand

9%

20.6 21.9 22.9 25.1

Demand Deposits (TL billion)

Bank Demand

63%

15%

26%

14%

(0%)1

Per bank-only figures 20% vs. sector’s 18%

~23% of total

customer deposits


Utilization of alternative funding sources to actively manage funding costs and duration mismatch

34

+

Opportunistic utilization of repos & money market borrowings

+

~TL 2.5bn TL bonds

+

Funding base reinforced with alternative funding sources

Issuances under GMTN program ~TL700mn with an avg. maturity of 2 yrs

EUR 1.1bn 1 yr syndicated loan 110% roll-over ratio at cost of L+100bps

+

TL 750 mn TL Eurobond issuance in 1Q13 with coupon rate of 7.375%, yielding 7.5%

+

Comfortable level of

LtD ratio:

79%

exclud.

Adjusted LtD ratio (TL Billion,%)


16,1% 15,9% 15,4% 14,4% 13,3%

5,8% 5,8% 5,7% 5,4% 5,3%

2Q 12 3Q 12 4Q 12 1Q 13 2Q 13

Declining asset yields were mostly offset with lower funding costs

35

Loan Yields1 (Quarterly Averages)

10,4% 9,8%

8,1% 7,2%

6,6% 8,9% 8,4%

6,9% 6,1%

5,5% 3,2% 3,0% 2,7% 2,4% 2,2%

2,5% 2,3% 2,0% 1,9% 1,7%

2Q 12 3Q 12 4Q 12 1Q 13 2Q 13

TL Time

TL Blended

FC Time

FC Blended

TL Yield

FC Yield

1 Based on bank-only MIS data and calculated using daily averages

LtD SPREAD SLIGHTLY

SUPRESSED QoQ

by 20bps

Ongoing ease in deposit costs, yet; at a decelerating pace vs. 1Q 13

Managed drop in loan yields backed by selective & healthy growth strategy

Cost1 of Deposits (Quarterly Averages)


513

394

462

Quarterly NIM (Net Interest Income / Average IEAs)

Loans

CPI Sec. Other Income Items

Deposits

Provisions

1Q 13 NIM

2Q 13 NIM

FX & Trading

2Q 13 Adj NIM

Other Expense

Items

Securities exc. CPI

-21 -25

-29 -5

+20

+10

+37

NIM

Quarterly margin supression is securities book driven

Adjustments to NIM: Net Interest Income/ Average IEA adjusted by FX gain/loss, provision for loans and securities, and net trading income/loss

-51 bps

-105

4,2% 3,4%

5,4% 5,1% 4,6%

2Q12 3Q12 4Q12 1Q13 2Q13

3,6% 3,9% 4,0% 4,9%

3,9%

2Q12 3Q12 4Q12 1Q13 2Q13

Adjusted NIM

-93bps

Q-o-Q Evolution of Margin Components (in bps)

TL depreciation against FX in

2Q, boosted Avg IEA base &

negatively impacted NIM

Adj. NIM down by ~93bps due to; • Relatively higher general

provisioning q-o-q • Additional provisions for the

alignment of cash coverage to pre-NPL sale level

36

Quarterly NIM down slightly

by 22bps when excluding

CPI linker volatility


Outstanding performance in sustainable revenues

1.032

1.308

1H 12 1H 13

Net Fees & Commissions (TL million)

Net Fees & Commissions Breakdown 1,2

1H 12 1H 13

#1 in

Ordinary Banking

Income3 generation

with the

highest Net F&C

market share

27%*

Sustainably growing and highly diversified fee base

Growth2 (y-o-y)

Cash* & non-cash loans ~60%

Brokerage 15%

Money transfer 12%

Insurance 17%

37

*Accounting of consumer loan fees were revisited in the beginning of 2013 upon the opinion of «Public Oversight» --Accounting & Auditing Standards Authority

Cash Loans 20,9%

Non Cash Loans 7,0%

Money Transfer

9,0% Insurance

5,4% Brokerage

4,0% Asset Mgt

1,7%

Other 10,8%

Payment Systems 41,2%

• Leader in interbank money transfer 18% market share vs. the peer average of 10%

• Highest payment systems commissions per volume -- 1.5% vs. the peer average of 1.2%4

• #1 in bancassurrance5

• Sustained brokerage market share #2 in equity market with 8% market share

• Most preferred pension company 19.5% market share in # of pension participants

1 Breakdown is on a comparable basis to same period last year 2 Bank-only MIS data 3 Defined as; net interest income adjusted with provisions for loans and securities, net FX and trading gains + net fees and commissions; for 1Q13 4 Peer average as of 1Q13 5 Among private banks as of May 2013 * Cash loan fees on a comparable basis for 1H 12 and 1H 13, where consumer loan orignation fees are included in the respective fee bases on a cash basis

Cash Loans 28,6%

Non Cash Loans 7,6%

Money Transfer

8,3% Insurance 5,2% Brokerage

3,8%

Asset Mgt 1,7%

Other 9,6%

Payment Systems 35,2%

* *


16,9% 16,8%

15,2% 15,5% 15,6%

14,3%

Basel II2012

Basel II1Q13

Basel II2Q13

Comfortable solvency supports the healthy and profitable growth strategy

Recommended

12%

Required 8%

TIER I

CAR & Tier I ratio

TIER I

Free Equity = SHE - ( Net NPL+ Investment in Associates and Subsidiaries + Tangible and Intangible Assets+ AHR+ Reserve Requirements) Free Funds = Free Equity + Demand Deposits * Including the effects of consolidation eliminations

Basel II CAR: 15.2%

Strong capitalization

Leverage: 8x

Low leverage

No negative impact expected under Basel III

High internal capital

generation supporting long-term

sustainable growth

38

TIER I


Differentiated business model -- reflected, once again, in strong results…

39 *Business as Usual= Excluding non-recurring items and regulatory effects in the P&L 1 Accounting of consumer loan fees were revisited upon the opinion of «Public Oversight» --Accounting & Auditing Standards Authority

OPEX/Avg. Assets

2.3% Flattish Y-o-Y

Committed to strict cost discipline -- on track with budget guidance

Omni-channel convenience supporting efficiencies • 35 net branch openings; •Successive & targeted investments

in digital platforms: İGaranti

•+6% rise in # of ATMs

•>1,000 new hires

Solid core banking revenue generation

Cost/Income

41% vs. 46% in 1H12

High level of Fees/OPEX

60% vs. 54% in 1H12

Strong consumer loan originations1 and well-diversifed fee sources generating across the board fee growth

(TL Million) 1H12 1H13 D YoY

(+) NII- excl .income on CPI linkers 2,124 2,967 40%

(+) Net fees and comm. 1,032 1,308 27%

(-) Specific & General Prov. - exc. one-off on specific prov.

-321 -717 123%

= CORE BANKING REVENUES 2,835 3,558 25%

(+) Income on CPI linkers 939 912 -3%

(+) Collections 89 136 52%

(+) Trading & FX gains 144 388 169%

(+) Other income -before one-offs 229 260 13%

(-) OPEX -before one-offs -1,908 -2,150 13%

(-) Other provisions -28 -66 137%

(-) Taxation -477 -665 39%

= BaU NET INCOME (exc. non-reccuring items) 1,824 2,372 30%

(+) NPL sale 25 35 n.m

(+) Free Provision Reversal 0 60 n.m

(-) Payment systems tax penalty expense 0 -24 n.m

(-) Saving Deposits Insurance Fund expense 0 -13 n.m

(-) One-offs on specific prov. -42 0 n.m

(-) Additional prov. to keep coverage ratio at 81% -25 -35 n.m

(-) Competition Board Fine 0 -160 n.m

(-) Various tax fine provisions 0 -50 n.m

= NET INCOME 1,782 2,185 23%


87%

13%

…with increasing contribution from subsidiaries

Consolidated Net Income

40

*

*

Subsidiaries’ contribution to bottom-line

up by 65% GarantiBank International • Capturing new business opportunities

• Effective management of market risks

• Positive contribution from treasury operations further reinforcing the bottom line • Net income up by 127% YoY

Total contribution mainly driven by:

GarantiBank Romania • Sustainable operating revenue growth

• Net income tripled YoY

Garanti Pension • Most preferred pension company

• Solid results even after

decreased cap on enterance,

fund management & administrative fees

Garanti Leasing • Coverage of a broad customer base--

corporates , commercial cust.s, & SMEs

• #1 in number of contracts

• Net income up by 18% YoY

89%

11%

Bank_only Net Income

Consolidation effect

Bank_only Net Income

Consolidation effect

1H 13

1H 12


Appendix

41


Balance Sheet - Summary

1 Includes banks, interbank, other financial institutions 2 Includes funds borrowed and sub-debt

42

Ass

ets

Liab

iliti

es&

SHE

(TL million) Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 YTD Change

Cash &Banks1 12,407 12,794 12,973 11,800 13,656 5%

Reserve Requirements 9,854 11,868 13,365 15,159 14,937 12%

Securities 41,329 39,291 40,358 41,580 39,070 -3%

Performing Loans 95,056 96,933 99,527 104,200 114,916 15%

Fixed Assets & Subsidiaries 1,615 1,607 1,697 1,713 1,701 0%

Other 10,334 10,584 11,860 11,346 13,111 11%

TOTAL ASSETS 170,597 173,078 179,779 185,798 197,391 10%

Deposits 97,032 99,722 97,778 104,829 112,011 15%

Repos & Interbank 12,245 8,094 14,107 11,836 12,421 -12%

Bonds Issued 4,005 6,160 6,077 7,181 9,066 49%

Funds Borrowed2 25,253 25,530 25,893 25,680 26,962 4%

Other 12,754 12,934 14,268 13,687 14,993 5%

SHE 19,309 20,637 21,657 22,585 21,938 1%

TOTAL LIABILITIES & SHE 170,597 173,078 179,779 185,798 197,391 10%


Drivers of the Yields on CPI Linkers1 (% average per annum) Interest Income & Yields on TL Securities (TL billion)

Long-term strategy of investing in CPI linkers as a hedge for expected reversal in market indicators

1 Based on bank-only MIS data 2 Per valuation method based on actual monthly inflation readings Note: All figures are based on bank-only data 43

6,6%

13,1%

19,7%

6,5%

-5,2%

1,3%

6,2%

15,0%

21,2%

5,6%

9,7%

15,3%

5,4% 5,4%

10,9%

Real Rate Inflation Impact Yield

2Q 12 3Q 12 4Q 12 1Q 13 2Q 13

12,8%

7,2%

12,7%

10,5%

8,7% 10,0% 9,8%

8,8% 8,0%

7,4%

451

30

605 517 395

573

543

477

441 404

2Q12 3Q12 4Q12 1Q13 2Q13

TL Sec. Yield1 incl. CPIs

TL Sec. Yield1 excl. CPIs

958

Income excl. CPIs

CPI effect2

1,025

573

1,082

(17%)

799


= -

-

=

Quarterly Margin Analysis

Adjustments to NIM: Net Interest Income/ Average IEA adjusted by FX gain/loss, provision for loans and securities, and net trading income/loss * Funds borrowed and repos 44

Total Interest Income Int. Income on loans (% of Avg. Interest Earning Assets)

Int. Income on securities (% of Avg. Interest Earning Assets)

Int. Income - Other (% of Avg. Interest Earning Assets) (% of Avg. Interest Earning Assets)

Total Interest Expense Int. expense on deposits (% of Avg. Interest Earning Assets) (% of Avg. Interest Earning Assets)

Int. expense on borrowings* (% of Avg. Interest Earning Assets)

Int. Expense - Other (% of Avg. Interest Earning Assets)

Net Interet Margin Prov. for Loans & Securities Net FX & Trading gains Net Int. Margin - Adjusted (% of Avg. Interest Earning Assets) (% of Avg. Interest Earning Assets) (% of Avg. Interest Earning Assets) (% of Avg. Interest Earning Assets)

+

+

+

+

+

5,98% 6,11% 6,10%

5,97%

5,76%

Jun-12 Sep-12 Dec-12 Mar-13 Jun-13

2,97%

1,69%

2,97% 2,61%

2,07%


0,62% 0,51% 0,55% 0,47% 0,42%


9,57%

8,31%

9,62% 9,06%

8,25%


3,65% 3,60% 2,95%

2,62% 2,42%


1,45% 1,08% 1,04% 1,06% 0,94%


0,23% 0,21% 0,24% 0,26% 0,27%


5,33% 4,89% 4,24% 3,93% 3,63%


0,80% 0,73%

1,41%

0,87% 1,05%


3,63% 3,92% 3,95% 4,87%

3,94%


4,24% 3,42%

5,38% 5,13% 4,62%


0,19%

1,24%

-0,02%

0,61% 0,37%



= -

Total Interest Expense

Prov. for Loans & Securities Net FX & Trading gains

Total Interest Income Int. Income on loans

Int. expense on deposits -

(% of Avg. Interest Earning Assets)

= Net Int. Margin - Adjusted

Cumulative Margin Analysis

Adjustments to NIM: Net Interest Income/ Average IEA adjusted by FX gain/loss, provision for loans and securities, and net trading income/loss * Funds borrowed and repos

45

+

+

+

+

Int. Income on securities (% of Avg. Interest Earning Assets)

Int. Income - Other (% of Avg. Interest Earning Assets) (% of Avg. Interest Earning Assets)



(% of Avg. Interest Earning Assets) Int. expense on borrowings* (% of Avg. Interest Earning Assets)

Int. Expense - Other (% of Avg. Interest Earning Assets)

(% of Avg. Interest Earning Assets) (% of Avg. Interest Earning Assets) (% of Avg. Interest Earning Assets)

+

Net Interest Margin

5,94%

6,02%

5,84%

6M12 12M12 6M13

3,02% 2,67%

2,33%

6M12 12M12 6M13

0,52% 0,53%

0,45%

6M12 12M12 6M13

9,48% 9,21%

8,62%

6M12 12M12 6M13

3,67% 3,47%

2,51%

6M12 12M12 6M13

1,44% 1,25%

0,99%

6M12 12M12 6M13

0,22% 0,22% 0,26%

6M12 12M12 6M13

5,33% 4,94%

3,77%

6M12 12M12 6M13

0,55% 0,82%

0,96%

6M12 12M12 6M13

0,20%

0,40% 0,49%

6M12 12M12 6M13

3,80% 3,87%

4,38%

6M12 12M12 6M13

4,15% 4,28%

4,85%

6M12 12M12 6M13


20,0 20,6 21,9 22,9 25,1

1H12 3Q12 2012 1Q13 1H13

498 513 502 518 543

1H12 3Q12 2012 1Q13 1H13

3.388 3.441 3.508 3.559 3.605

1H12 3Q12 2012 1Q13 2Q13

11,6

11,9

1Q13 1H13

10,7 11,2 11,9 12,3 13,6

1H12 3Q12 2012 1Q13 1H13

926 932 936 947 961

1H12 3Q12 2012 1Q13 1H13

Mortgages (TL billion) Number of Customers (million)

Number of Branches Number of ATMs Number of POS (thousand)

Demand Deposits (customer+bank) (TL billion)

Further strengthening of retail network...

35 217 45

5.1 2.9 0.3

11

14

6 4

51

46

67 53

15

1.3 2.1

46

#3** #1*

#2** #1**

25

(11) 16

#3

*Including shared and virtual POS terminals ** Branch, Mortgage and Demand Deposit rankings are as of March 2013. All rankings are among private banks Note: All figures are based on bank-only data except for mortgages amd demand deposit balances

Sustained momentum in

customer acquisition


...while preserving the highest efficiency ratios

1 Total Loans=Cash+non-cash loans Note:Figures are per bank-only financials for fair comparison 47

2,4

2,1

1,6 1,4

Garanti Peer 1 Peer 2 Peer 3

178,1 162,1

144,0 136,1


96,9

77,7 80,4 75,2


Ordinary Banking Income per Avg. Branch (1Q13) (TL million)

Assets per Avg. Branch (1Q13) (TL million) Customer Deposits per Avg. Branch (1Q13) (TL million)

127,2

116,5

110,8 114,3


Loans1 per Avg. Branch (1Q13) (TL million)


Key financial ratios

48 1 Payables from credit card transactions. Please refer to footnote 5.2.4.3 miscellaneous payables as per BRSA Unconsolidated financial report * CAR and TIER I ratios are per Basel I for the periods Mar 12, Jun12 and per Basel II for Sep 12,Dec 12,Mar 13, Jun 13.


Profitability ratios

ROAE 19.3% 18.3% 17.0% 23.8% 20.8%

ROAA 2.2% 2.1% 2.0% 2.9% 2.4%

Cost/Income 45.6% 45.9% 47.5% 36.4% 41.2%

NIM (Quarterly) 4.2% 3.4% 5.4% 5.1% 4.6%

Adjusted NIM (Quarterly) 3.6% 3.9% 4.0% 4.9% 3.9%

Liquidity ratios

Liquidity ratio 29.7% 29.3% 28.9% 28.2% 26.2% Loans/Deposits adj. with merchant payables

1

94.3% 93.5% 97.8% 95.8% 98.7%

Asset quality ratios

NPL Ratio 2.1% 2.3% 2.6% 2.7% 2.3%

Coverage 78.1% 76.5% 78.0% 78.3% 78.9%

Gross Cost of Risk (Cumulative-bps) 87 97 128 131 138

Solvency ratios

CAR* 15.3% 16.4% 16.9% 16.8% 15.2%

Tier I Ratio* 14.3% 15.1% 15.5% 15.6% 14.3%

Leverage 7.8x 7.4x 7.3x 7.2x 8.0x


Disclaimer Statement

49

Türkiye Garanti Bankasi A.Ş. (the “TGB”) has prepared this presentation document (the “Document”) thereto for the sole purposes of providing information which include forward looking projections and statements relating to the TGB (the “Information”). No representation or warranty is made by TGB for the accuracy or completeness of the Information contained herein. The Information is subject to change without any notice. Neither the Document nor the Information can construe any investment advise, or an offer to buy or sell TGB shares. This Document and/or the Information cannot be copied, disclosed or distributed to any person other than the person to whom the Document and/or Information delivered or sent by TGB or who required a copy of the same from the TGB. TGB expressly disclaims any and all liability for any statements including any forward looking projections and statements, expressed, implied, contained herein, or for any omissions from Information or any other written or oral communication transmitted or made available.


50

Investor Relations Levent Nispetiye Mah. Aytar Cad. No:2 Beşiktaş 34340 Istanbul – Turkey Email: [email protected] Tel: +90 (212) 318 2352 Fax: +90 (212) 216 5902 Internet: www.garantibank.com

/garantibankasi

http://www.garantibank.com/

investor relations / investor presentation

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