Source: Datastream, Turkstat

Economic Growth

2

Q1: 1.7%

-15

-10

-5

0

5

10

15

20

2001 2006 2011 2016 2021

Real GDP Growth (sa, qoq, %)

(*) Latest figure as of June 2021

Source: Datastream, Turkstat

Leading Indicators

3

8

12

16

20

24

2018 2019 2020 2021

Foreign Trade* (billion USD)

Exports ImportsExp. 2013-2020 Avg. Imp. 2013-2020 Avg.

30

35

40

45

50

55

60

65

70

-80

-60

-40

-20

0

20

40

60

80

2018 2019 2020 2021

Economic Activity

Manufacturing PMI (index, right axis)

Industrial Production (CAdj., yoy % change)

0

20

40

60

80

100

120

Jul 17 Jul 18 Jul 19 Jul 20 Jul 21

Confidence Indices

Real sector confidence

Economic confidence

Consumer confidence

Fiscal Policy

4

-10

0

10

20

30

40

50

60

70

80

Jun 18 Jun 19 Jun 20 Jun 21

Budget Expenditures and Tax Revenues

(3-month ma, annual % change)

Non-interest Expenditures

Tax Revenues

-0.6 -1.5 -1.7

-5.2

-3.4

-1.3 -1.9

-1.0 -1.1 -1.0 -1.1 -1.5 -1.9

-2.9 -3.4

2006 2008 2010 2012 2014 2016 2018 2020

Budget Balance (% GDP)

Maastricht criterion: -3%

37.8 43.5

28.0

40.4*

2007 2009 2011 2013 2015 2017 2019 Q12021

General Government Debt Stock (% GDP)

Maastricht criterion: 60%

(*) 12-month cumulative data, as of Q1 2021

Source: Turkstat, Ministry of Treasury and Finance

(*) Increase in reserves (-)

Source: CBRT, Turkstat

Current Account Balance

5

-5.6 -5.4 -5.0

-1.5

-6.9

-9.6

-5.8 -6.4

-4.1

-2.9 -3.1

-5.1

-2.9

0.9

-5.2

2006 2008 2010 2012 2014 2016 2018 2020

Current Account Balance (% of GDP)

-31.9

4.0 4.9 3.9

8.0

11.0

-80

-60

-40

-20

0

20

40

60

80

May 19 Nov 19 May 20 Nov 20 May 21

Net Capital Flows (12-month cumulative, USD billion)

Official Reserves (*)Net Errors and OmissionsOther InvestmentsPortfolio InvestmentsForeign Direct InvesmentsCurrent Account Balance

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

Source: CBRT

Short-Term External Debt Stock

6

May 2021 (*)

(bn USD) Share (%)

Central Bank 23.6 12.5

General Government 5.4 2.9

Banks 85.3 45.1

Credits 34.7 18.3

FX Deposits 20.7 10.9

Bank Accounts 14.3 7.5

Branches and Affiliates Abroad 5.1 2.7

TRY Deposits 15.6 8.2

Branches and Affiliates Abroad 8.1 4.3

Other Sectors 75.0 39.6

Trade Credits 59.4 31.4

Other Credits 15.6 8.2

Public 0.2 0.1

Private 15.4 8.1

Total 189.4 100.0

111

198 187

332

108 101

76 74 80 88

117 97

123 143 139

106

137

84 75

108

2012 2013 2014 2015 2016 2017 2018 2019 2020 May2021

12-month Long-Term Debt Roll Over Ratio

(%)

Banking Sector Non-banking Sector

Source: CBRT

Net FX Position of NFCs

7

10.2 -3.5 -0.6 -5.5 -0.1 5.9 2.4 7.9 1.5 4.6 25.9 22.1

-98 -114

-135

-167 -180 -195 -206

-219 -208 -185 -183 -181

-88

-117 -136

-173 -180

-189

-204 -211

-207

-181

-157 -159

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

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

Long Term Net FX Position

Short Term Net FX Position

Net FX Position

(*) Latest figure as of June 2021

Source: CBRT, Datastream

Monetary Policy

8

17.53

4

8

12

16

20

24

28

2014 2015 2016 2017 2018 2019 2020 2021

Annual CPI Inflation* (%)

4

8

12

16

20

24

28

Jan 20 Jul 20 Jan 21 Jul 21

Interest Rates (%)

Interest Rate Corridor

One Week Repo Rate

CBRT Weighted Average Cost of Funding

Late Liquidity Window

Source: BRSA

Banking Sector

9

48 58

33 17

11 17

8 9

2010 May 2021

Asset Composition (%)

Other Assets

Cash+Banks

Securities

Loans

63 57

10 11

0 3

14 9

13 19

2010 May 2021

Liability Composition (%)

Other Liabilities

Shareholder's Equity

Securities Issued

Banks

Deposits

Latest figure as of July 19, 2021

Source: BRSA

10

Banking Sector

-20

-10

0

10

20

30

40

50

2015 2016 2017 2018 2019 2020 2021

Deposit Volume (annual % change)

TL Deposits

FX Deposits in USD Terms

Total Deposits (exchange rate adjusted)

44.9

40

45

50

55

60

65

2015 2016 2017 2018 2019 2020 2021

Share of TL Deposits in Total (%)

11

Banking Sector

Latest figure as of July 19, 2021

Source: BRSA

-20

-10

0

10

20

30

40

50

60

2015 2016 2017 2018 2019 2020 2021

Loan Volume (annual % change)

TL Loans

FX Loans in USD Terms

Total Loans (exchange rate adjusted)

64.0

55

59

63

67

71

75

2015 2016 2017 2018 2019 2020 2021

Share of TL Loans in Total (%)

(*) Latest figure as of May 2021

Source: BRSA

Banking Sector

12

3.0

2.4

3.3

3.3

4.4

2.5

5.4

8.4

4.7

2.9

3.0

3.4

3.3

3.6

3.7

6.0

7.0

8.5

12.3

20.4

Food, Beverages, Tobacco

Main Metal

Textile

Agriculture, Hunting andForestry

Tourism

Transportation, Storage andCommunication

Electricity, Gas and WaterResources

Construction

Wholesale and Retail Trade

Manufacturing industry

Loans by Main Industry Groups*

Share (%)

NPL (%)2.7

2.9

2.8

2.9

3.1

3.2

3.0

3.9

5.4

4.1

3.7

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 May

2021

Non-performing Loan Ratio (%)

(*) Latest figure as of July 19, 2021

Source: BRSA

Banking Sector

13

16.6

17.9

15.3

16.3

15.6 15.6

16.9 17.3

18.4 18.7

17.9

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 May2021

Capital Adequacy Ratio (%)

Legal Limit of 8%

Target Rate of 12%

-80

-60

-40

-20

0

20

40

60

80

2015 2016 2017 2018 2019 2020 2021

Net FX Position* (billion USD)

Net On Balance Off Balance

Source: BRSA

Banking Sector

14

15.5% 15.7%

14.2%

12.3% 11.3%

14.3%

15.9% 14.8%

11.5% 11.4%

12.1%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q12021

ROAE

1.7% 1.8%

1.6%

1.3%

1.2%

1.5% 1.6%

1.4%

1.2% 1.1% 1.1%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q12021

ROAA

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