The Banking Sector in Turkey 2014 – March 2018

1. The Banking Sector in Turkey • 2014 – March 2018

2. This study was prepared using data provided by the Central Bank of the Republic of Turkey (CBRT), Banking Regulation and Supervision Agency (BRSA), Turkish Statistical Institute (TurkStat), Capital Markets Board of Turkey, The Interbank Card Center, SNL and The Banks Association of Turkey (BAT). • Whilst every effort has been made to ensure that the information contained in this study is correct, The Banks Association of Turkey cannotacceptanyresponsibility for any errors or omissions or for any consequences resulting therefrom. • Unless otherwise stated, data covers deposit and development and investment banks. • This study was prepared for the aim of following upandassessing the developments in the Turkish Banking Sector. The study will be updated every three months. • Any ideas and suggestions arewelcome and important for the improvement of the study. • For your ideas and suggestions: • Ümit Ünsal, umit.unsal@tbb.org.tr 0212 282 09 73 • Latest update: June 2018

3. Index • General Information • Balance Sheet Indicators • Selected Indicators • Income/Expenditure Indicators • International Comparison

4. General Information

5. Banking Sector in Turkey • As of March2018, there are 52 banks in total, 34 of them being deposit, 13 development and investment and 5 of them participation banks. According to Banking Law No 5411: • Deposit bank: The institutions operating primarily for the purposes of accepting deposit and granting loan in their own names and for their own accounts, • Participation bank: The institutions operating primarily for the purpose of collecting fund through participation accounts and granting loan, • Development and investment bank: The institutions operating primarily for the purposes of granting loan and/or fulfill the duties assigned thereto by their special Laws.

6. Number of Banks Source: BAT, BRSA

7. Number of Branches (Thousand) Participation banks are included. Source: BRSA

8. Number of Branches per 100,000 People Participation banks areincluded. Source: BRSA

9. Number of Branches of Deposit Banks (Branches abroad are included, thousand) Number of branches of development and investment banks are 40 as of March 2018 . Source: BRSA

10. Number of Employees (Thousand) Participation banks are included. Source: BRSA

11. Number of Employees per 100,000 People Participation banks areincluded. Source: BRSA

12. Number of Employees (Thousand) Source: BRSA

13. Distribution of Employees by Sex (Percentage) Source: BAT

14. Ownership Structure * (In terms of paid-in capital, as of December 2017, perc.) * Ownership structure is not taken into account in the shares trading in ISE. The weighted paid-in capital shares are used for the calculation of capital structure . The distribution of shares traded in ISE is not included. Source: BAT

15. Ownership Structure (In terms of paid-in capital, perc.) Source: BAT

16. Numbers of ATM, POS, Debit Cards and Credit Cards (Thousand) Source:The Interbank Card Center

17. Transaction Volume of Debit Cards (Incl. domestic and international transactions) to Gdp (Percent) Source: The Interbank Card Center, TurkStat

18. Transaction Volume of Credit Cards (Incl. domestic and international transactions) to Gdp (Percent) Source: The Interbank Card Center, TurkStat

19. Number of customers in Internet Banking and Volume of Transactions Starting from March 2017, digital banking statistics have been added to the report and updates have been made to internet banking and mobile banking definitions. * The number of customers who have logged in at least once during last three months. Source: BAT

20. Number of customers in Mobile Banking and Volume of Transactions Starting from March 2017, digital banking statistics have been added to the report and updates have been made to internet banking and mobile banking definitions. * The number of customers who have logged in at least once during last three months. Source: BAT

21. BalanceSheetIndicators

22. Total Assets Source: BRSA

23. Financial Assets and Liquid Assets (Billion TL) Source: BRSA

24. Financial Assets and Liquid Assets (Billion USD) Source: BRSA

25. Loans and Receivables Source: BRSA

26. Distribution of Loans and Receivables (Percentage) Source: BRSA

27. The Distribution of Loans* (Annual growth, percent) *Participation banks areincluded. Source: BRSA

28. The Distribution of Loans* (Annual growth deflated with CPI, percent) *Participation banks areincluded. Source: BRSA

29. Deposits Source: BRSA

30. TL Deposits / Total Deposits (Percent) Source: BRSA

31. The Distribution of Deposits* (Annual growth, percent) *Participation banks areincluded. Source: BRSA

32. The Distribution of Deposits* (Annual growth deflated with CPI, percent) *Participation banks areincluded. Source: BRSA

33. Shareholder’s Equity Source: BRSA

34. Free Shareholder’s Equity Source: BRSA

35. Non Deposit Funds Source: BRSA

36. SelectedIndicators

37. Assets and Income Per Capita (USD) Source: BRSA, TurkStat

38. Selected Balance Sheet Indicators to Gdp (Percent) Source: BRSA, TurkStat, BAT

39. Government Domestic Debt to Total Assets (Percent) Source: CBRT, BRSA

40. Loans and Receivables / Total Assets (Percent) Source: BRSA

41. Financial Assets / Total Assets (Percent) Source: BRSA

42. Deposits / Total Assets (Percent) Source: BRSA

43. Non-Deposit Funds / Total Assets (Percent) Source: BRSA

44. Shareholder’s Equity / Total Assets (Percent) Source: BRSA

45. Loans and Receivables / Deposits (Percent) Source: BRSA

46. Non Performing Loans (Before provisions) / Total Loans and Receivables (Percent) Source: BRSA

47. Average Return on Equity and 2 Year Government Bond Yield (Percent) Source: BRSA, TurkStat, BAT

48. Capital Adequacy Ratio (Percent) Source: BRSA

49. Income / Expenditure Indicators

50. Interest Income, Interest Expenditure and Net Interest Income to Total Assets (Percent) Source: BRSA