türk ekonomi bankası a.Ş. 2011 1q results. teb financial group of companies and the merged bank

Türk Ekonomi Bankası A.Ş.

2011 1Q Results

TEB Financial Group of Companies and

the Merged Bank

3Türk Ekonomi Bankası A.Ş.

A Major Player of the Turkish Financial Services Market

TEB InvestmentTEB Investment 8th largest brokerage &

investment house of Turkey with 3,21% market share as of 2011 1Q

8th largest brokerage & investment house of Turkey with 3,21% market share as of 2011 1Q

TEB Asset ManagementTEB Asset Management

3,81% market share with EUR 608 mio of AUM as of 2011 1Q

3,81% market share with EUR 608 mio of AUM as of 2011 1Q

TEB N.V.TEB N.V. “Turkish specialist” in

the EU market, total asset size is EUR 692 mio as of 2011 1Q

“Turkish specialist” in the EU market, total asset size is EUR 692 mio as of 2011 1Q

TEB LeasingTEB Leasing 8th largest leasing

company in Turkey with 4,5% market share as of 2011 1Q

8th largest leasing company in Turkey with 4,5% market share as of 2011 1Q

TEB FactoringTEB Factoring 3rd largest factoring

company in Turkey with 9% market share as of 2011 1Q

3rd largest factoring company in Turkey with 9% market share as of 2011 1Q

TEB CetelemTEB Cetelem 3rd largest consumer

finance company in Turkey

3rd largest consumer finance company in Turkey

TEB KosovaTEB Kosova Operative since

January 2008, with 17 branches

Operative since January 2008, with 17 branches

TEB ArvalTEB Arval Operative since

October 2007

Operative since October 2007

A wide spectrum of financial services

TEB (Bank)Full range of banking

services

TEB (Bank)Full range of banking

services


Subsidiaries of TEB

TEB HoldingTEB Holding

Çolakoğlu Group

Çolakoğlu Group

50%

TEB CetelemTEB Cetelem TEB SHA (Kosovo)TEB SHA (Kosovo)TEB ARVALTEB ARVAL TEB

(Bank)TEB

(Bank)

TEB NV(TheNetherlands)

TEB NV(TheNetherlands)

TEB LeasingTEB Leasing

TEB Factoring

TEB Factoring

TEB Asset ManagementTEB Asset

Management

TEB Investment

TEB Investment

10.51% free float (Istanbul

Stock Exchange)

55 %

BNP Paribas Group

BNP Paribas Group

50%Partnership with BNPP since February 2005

20% 50% 100%

100%

10%

100%

100%

100% Fortis Investment

Fortis Investment+


Ownership Structure of TEB

SFPI*

Fortis Bank SA/NV BNP Paribas Çolakoğlu Group

TEB Holding A.Ş.BNPP-FortisInvestment Holding A.S.

BNPP Investment

Holding A.S.

TEB A.S. Free Float

50%50%

10.51%

20.35%

14.08%

100%100%

25%10.79%

55%

75%

*Société Fédérale de Participations et d’Investissments


Van

Konya

Nevşehir

Kırşehir

SinopBartın

Çankırı

BilecikTokat

Bitlis

HakkariŞırnak

Siirt

Karaman

Balıkesir

Afyon

Uşak

Aydın

İzmir

Edirne

Kırklareli

İstanbulTekirdağ

Çanakkale

İzmit

Yalova

Zonguldak

Kastamonu

Samsun

Ankara Kırıkkale

Aksaray

Isparta

Burdur

Antalya

Mersin

Niğde

Yozgat

AmasyaOrdu

Adana

Hatay

G.Antep

K.Maraş

Malatya

Adıyaman

G.Hane

Muğla

Düzce

Osmaniye

Kilis

Sakarya

Bayburt

Kıbrıs

DenizliAydın

Uşak Manisa

BingölTunceli

Van

Muş

Ş.Urfa

Elazığ

Diyarbakır

Mardin

Batman

Erzincan

GiresunTrabzon

Rize

Eskişehir

Bursa

Kütahya

Bolu

Sivas

Çorum

Kayseri

KarabükArdahan

Ağrı

Iğdır

Artvin

Kars

Erzurum

Şube bulunan iller

The Merged Bank

As of 31/03/2011 Number of Clients: 2,9 million Number of Branches: 603 Total Staff: 9945

Cities where the combined bank has branches

Financial Highlights


Consolidated Balance Sheet

Source: TEB, BRSA Consolidated Financials

TRY Million Share Change Share Change

Assets Liabilities

Cash & banks 9% 3,167 3,050 3.8% Deposits 55% 18,366 13,164 39.5%

M.sec + repos 18% 5,910 3,863 53.0% Repos 2% 725 87 733.3%

Loans + Trade rec. 68% 22,600 13,482 67.6% Funds Borrowed 22% 7,286 4,402 65.5%

Other Assets 3% 947 647 46.4% Other Liab. 6% 2,144 1,095 95.8%

Non- IE Assets 2% 729 132 452.3% Total Liabilities 86% 28,521 18,748 52.1%

Total Assets 100% 33,353 21,174 57.5%

Subordinated Loans 1% 488 473 3.2%

Sh. Equity

Capital & Res. 13% 4,268 1,681 153.9%

Income 0.2% 76 272 n.m.

Total Sh. Equity 13% 4,344 1,953 122.4%

Total Liab + Equity 100% 33,353 21,174 57.5%

Reviewed Audited31.03.2011 31.12.2010 31.03.2011 31.12.2010Reviewed Audited


Consolidated Income Statement


TRY Million Change

Net Interest Income 298.2 214.5 39%

Marketable Securities Revaluation Differences -35.4 -14.1 151%

Adjusted Net Interest Income 262.8 200.4 31%

FX Gains / (Losses) -27.1 53.9 nm

Derivatives Trading 41.1 -63.8 nm

Securities Trading Income 34.8 13.7 155%

Net Fees & Commissions Income 83.9 73.5 14%

Other Operating Income 20.7 13.2 56%

Net Banking Income 416.3 290.8 43%

Loan Loss Provisions -20.5 -42.3 -52%

Net Operating Income 395.8 248.5 59%

Income from discontinued operations 0.0 7.6 nm

Operating Expenses -296.7 -192.3 54%

Provision for Taxes on Income -23.3 -13.9 67%

Net Income / (Loss) 75.9 49.8 52%

Reviewed Reviewed31.03.201031.03.2011


Consolidated Income Statement

TRY Million Change

Net Interest Income 298.2 203.9 46%

Marketable Securities Revaluation Differences -35.4 5.4 nm

Adjusted Net Interest Income 262.8 209.3 26%

FX Gains / (Losses) -27.1 23.9 nm

Derivatives Trading 41.1 -35.8 nm

Securities Trading Income 34.8 3.4 929%

Net Fees & Commissions Income 83.9 246.5 -66%

Other Operating Income 20.7 8.9 133%

Net Banking Income 416.3 456.0 -8.7%

Loan Loss Provisions -20.5 -49.6 -59%

Net Operating Income 395.8 406.4 -3%

Operating Expenses -296.7 -238.2 25%

Provision for Taxes on Income -23.3 -38.0 -39%

Net Income / (Loss) 75.9 130.3 -42%

Reviewed Audited2011 1Q 2010 4Q



TEB Assets Growth (Q o Q)

TEB Assets Composition

TEB+FORTIS Assets Growth (Q o Q)

TEB Liability Composition

Balance Sheet Composition



Loan Composition and Asset QualityLoan Composition (Q o Q)

Non Performing Loans

4.1%

3.2%

3.2%

3.0%

3.3%

57%

54%

60%

66%

69%

348,698

923,120

767,326 777,120 753,971

402,538

334,714360,075

695,975

31.03.10 30.06.10 30.09.10 31.12.2010 31.03.11

NPL

Coverage

Non Performing Loans

TEB+FORTIS

21%

22%

20%

80%

78%

79%

77%

76%

23%

24%

10,473 10,79411,753

17,445

18,929 18,95119,983 20,906

9,675

31.03.10 30.06.10 30.09.10 31.12.2010 31.03.11

TL Loans

FX Loans

Total Loans

TEB+FORTIS

Source: TEB, BRSA Bank-Only Financials


Loans by Business Lines

9941,091 1,103

443

1,132

2,808

1,135

155 179 193 240

1,858

997751 915

1,048

489466458440

31.03.10 30.06.10 30.09.10 31.12.10 31.03.11

Mortgage Vehicle Consumer Credit Card

PRIVATE0.2%

CORPORATE30.4%

RETAIL (*)27.0%

SME42.4%

New Segmentation Criteria

Corporate > 30 mio TL

SME < 30 mio TL

0,5 mio TL private

(*) credit cards are included


Breakdown of Retail Loans


Other16%

Metal7%Consumer

18%

Tourism6%

Mining2%Misc. Services

6%

Wholesale/Retail5%

Food, Beverage & Tobacco

9%Construction

8%

Textile8%

Elect. & optical appliances2%

Machinery2%

Agriculture3%

Transportation Veh.3%

Chemicals5%

Loans by industry

Loan Portfolio by Industry 31.03.2011



Breakdown of Deposits

Time/Demand Deposit Composition

New Segmentation Criteria

Corporate > 30 mio TL

SME < 30 mio TL

> 0,5 mio TL private


PRIVATE11.2%

SME22.8%

RETAIL38.5%

CORPORATE27.4%


SELECTED RATIOS-1

Loan/Deposits

Liquid Assets/Deposits



SELECTED RATIOS-2

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

Restructuring costs: 300 mio TL of which approx. 57 mio was booked in 2010 21.4 mioTL booked in 2011 1Q

Synergies: 200 mio TL for the year 2013 (recurring)

Subject to potential further revisions in the upcoming stages, the preliminary studies forecasts total income restructuring costs of TL 300 million for the years 2010 to 2012. Income synergies forecasted for the year 2013 on the other hand is TL 200 million. While the synergies are expected to continue following 2013, restructring costs will end in 2012.



SELECTED RATIOS-3

NIM(*)

(Net interest income+ Foreign Exchange gain/loss +Derivatives Gains) / Average Interest Earning Assets

(*)

Cost of Risk Capital Adequacy Ratio

15.3

%

14.4

%15.7

%

15.4

%16.3

%

31.03.10 30.06.10 30.09.10 31.12.10 31.03.11



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.

türk ekonomi bankası a.Ş. 2011 1q results. teb financial group of companies and the merged bank

Documents

subsidiaries of teb

q teb leasing

q teb factoring

q teb cetelem

trk ekonomi bankas

q teb asset management

turkey teb kosova operative

branches teb arval operative