The Turkish Sector has attracted significant Foreign Investment in the last few years Under penetration 20% 20.85% 40.9% 84.7% 99.81% 100% 42.1% 100%

The Turkish Sector has attracted significant Foreign Investment in the last few years

Under penetration

20%

20.85%

40.9%

84.7%

99.81%

100%

42.1%

100%

93.3%

+

Young and growing population

+

Improving macro parameters, economic environment

Foreign participation in top 10 private banks (USD bn, % of shares)

Garanti: Brief Introduction

US$ 2.1 bn

Integrated financial services company

Technologically advanced, innovative and dynamic

Customer-centric growth model with key focus on profitability and asset quality

Ownership structure:

51%: owned by Doğuş Group (30%) and GECF (21%)

49%: in the free float

Total Assets

US$ 66 bnShareholders’ Equity

US$ 6.4 bn2008 Net Interest Income

Branch Network2

740Customer Number2

7.5 mn

US$ 1.12 bn 2008 Net Profit

GarantiBank ADC

ADC Customers 5.5 million

Online Customers 1,600,000

ADC Usage Rate 87%

Transactions 30 mio/mth

Volume (USD)* 50 bn/mth

Total Revenue (USD)*

95 million

“Turkey’s Best Internet Bank“(8th Consecuvite Year)Golden Spider, 2009

* Volume and Total Revenue are estimated for 2009

“World’s Best Investment Mng. Services “Global Finance, 2006

“Turkey’s Best Commercial Internet Bank“

Global Finance, 2008

“Europe’s Best Retail Internet Bank”

Global Finance, 2008

“Europe’s Best Commercial Internet Bank“

Global Finance, 2008

“Best Information Security Initiatives- Europe“

Global Finance, 2008

Garanti Alternative Distribution Channels

•740 branches•13,500 employees

Branch NetworkBranch NetworkBranch NetworkBranch Network

•1.6 million online banking customers•15 million transactions/day•3.7 million product sales annualy

www.garanti.com.tr / Online Bankingwww.garanti.com.tr / Online Bankingwww.garanti.com.tr / Online Bankingwww.garanti.com.tr / Online Banking

İnternet Kioskİnternet Kioskİnternet Kioskİnternet Kiosk

•600 Kiosks•All Online Banking Transactions

wap.garanti.com.tr / Mobile Bankingwap.garanti.com.tr / Mobile Bankingwap.garanti.com.tr / Mobile Bankingwap.garanti.com.tr / Mobile Banking

•250.000+ Mobile Banking Users•Most of the Online Banking Transactions

CepBankCepBankCepBankCepBank

•280.000 users•9 Different SMS Banking Transactions

•2.700 ATMs•10.060 “Golden Point” ATMs

ATMsATMsATMsATMs

•3.3 million calls/month•2.5 million product sales annually

Call CenterCall CenterCall CenterCall Center

Garanti Alternative Distribution Channels

AvailabilityAvailabilityAvailabilityAvailability

ConvenienceConvenienceConvenienceConvenience

BranchBranchBranchBranch

Call CenterCall CenterCall CenterCall Center

InternetInternetInternetInternet

MobileMobileMobileMobile

KioskKioskKioskKiosk

CepBankCepBankCepBankCepBank

ATMsATMsATMsATMs

Online Banking?

•Guarantee speed

•Availability

•Create convenience

•Provide personalization

Improve Customer RetentionImprove Customer RetentionImprove Customer RetentionImprove Customer Retention

•Create more time for sale

•Reduce operations load & cost

Improve Branch PerformanceImprove Branch PerformanceImprove Branch PerformanceImprove Branch Performance

•Cross/up-sell

•Sales lead generation

•New customer acquisition

Exploit New Sales OpportunutiesExploit New Sales OpportunutiesExploit New Sales OpportunutiesExploit New Sales Opportunuties

•Strong communication

•Strengthening corporate identity

Increase Brand EquityIncrease Brand EquityIncrease Brand EquityIncrease Brand Equity

More Sales More Profit

%45%55

%98,5

Less Cost More Contacts

15 contacts/month %20

More Satisfaction

CostCost LoyaltyLoyalty Net Promoter S.Net Promoter S.

Sales and ProfitabilitySales and Profitability

Creating Loyal and Valuable Customers

13%

15%

16%

7%

24%

25%

Mobile Usage

•Which medium would be your last choice if you had to leave?

RadioRadioRadioRadio

InternetInternetInternetInternet

NewspaperNewspaperNewspaperNewspaper

PeriodicalPeriodicalPeriodicalPeriodical

TVTVTVTV

MobileMobileMobileMobile

•Source: 2006 TNSPiar

Garantibank Mobile Banking Strategy

• Inquiry Services

• ““CepBank” CepBank” Financial Transactions• Instant Loan Application

• e-Commerce

• Ordered Payments & Call Centers

• Push Services

• Pull Product Sales

SMS BankingSMS BankingSMS BankingSMS Banking

Mobile Banking “Cep Subesi”Mobile Banking “Cep Subesi”Mobile Banking “Cep Subesi”Mobile Banking “Cep Subesi”

Mobile Payment “CepBank Shopping”Mobile Payment “CepBank Shopping”Mobile Payment “CepBank Shopping”Mobile Payment “CepBank Shopping”

SecuritySecuritySecuritySecurity

• Bonus Trink - Mobile Wallet

• Public Site

• Secure Site

• Soft TokensSoft Tokens

• SMS OTP

• Mobile Signature

• Security Alerts & Transfer Alerts

• Distribution innovation: Personal Loan in 5 min.

Instant pre-approval in max. 5 minutes

Multi-channel approach via Internet, ATMs, Call center and

SMS

Quick and easy application for both customers & non-

customers

Value proposition

• 4.000.000 applications

•800.000 applications via SMS

Impact

•Monthly Volume X 13

•Monthly Applications X 120

•Approval Rate X 5

Impact After 1st year

CepBank: Money Transfer

GarantiCustomer

Money Transfer by a single SMS to even non-customers

Through All Operators

Non-GarantiCustomer

• Distribution innovation: SMS banking

Value proposition

Impact: 300.000 CepBank CustomersImpact: 300.000 CepBank Customers

6 Different Transactions6 Different Transactions

“Money Transfer to Non-Customer” by SMS”; 1st in the World

“Money Transfer to Non-Customer” by SMS”; 1st in the World

Usage in Mobile Marketing Campaigns of FMCG Companies

Usage in Mobile Marketing Campaigns of FMCG Companies

•Money Transfer to Mobile Phone (Non-Customer)

•Credit Card Payment

•Money Transfer to Registered Accounts

•Toll Payments

•Mobil Phone Top-Up

•Game of Chance Payments

(1) Sends an SMS to 3333, with receiver

phone number, payment amount

and password

(2) Garanti sends an SMS to the receiver which contains

the Sender’sName, Surname and the PIN

(3) Receiver uses the “Cardless

Transactions” menu to withdraw cash by

entering his mobile phone number, sender’s phone

number, amount and the PIN code sent via

sms

How it works?

CepBank in Mobile Marketing Campaigns

Cash Promotion in 30 mio Doritos Fritolay Potato Chips PackagesCash Promotion in 30 mio Doritos Fritolay Potato Chips PackagesCash Promotion in 30 mio Doritos Fritolay Potato Chips PackagesCash Promotion in 30 mio Doritos Fritolay Potato Chips Packages

•Winners withdraw cash from the ATM by using the information in the SMS – no need to be a Garantibank customer

25.000 Doritos Fritolay Potato Chips Consumers, 400.000 USD in Cash25.000 Doritos Fritolay Potato Chips Consumers, 400.000 USD in Cash25.000 Doritos Fritolay Potato Chips Consumers, 400.000 USD in Cash25.000 Doritos Fritolay Potato Chips Consumers, 400.000 USD in Cash

4040.000 .000 Nestle Crunch Consumers, 200.000 Nestle Crunch Consumers, 200.000 USD in cashUSD in cash4040.000 .000 Nestle Crunch Consumers, 200.000 Nestle Crunch Consumers, 200.000 USD in cashUSD in cash

Doritos sent you 10 USD by Garanti CepBank You can withdraw in 30 days from any Paramatik ATM by using “CARDLESS” key. PIN:1234 

Mobile Payment, “CepBank Shopping”

SecuritySecuritySecuritySecurity Ease of UseEase of UseEase of UseEase of Use

FlexibilityFlexibilityFlexibilityFlexibilityOperator IndependenceOperator IndependenceOperator IndependenceOperator Independence

How Does Garanti CepBank Shopping Work?

•Client chooses CepBank Shopping option after completing shopping procedure. He enters the mobile phone number, that is registered to CepBank, into “Mobile Phone Number” field;

How Does Garanti CepBank Shopping Works?

PLEASE REPLY BY ENTERING YOUR CEPBANK PIN TO APPROVE PAYMENT OF 21,49 YTL WITH THE REFERENCE NUMBER 1417045 FROM HEPSIBURADA:COM.

YOU HAVE PURCHASED FROM HEPSIBURADA:COM WITH THE AMOUNT OF 21,49 YTL. CEPBANK.

How Do We Use Mobile?

YEARYEARYEARYEAR

•More than 5 million WAP users.

•More than 30 million mobile phones (%60) WAP enabled.

SPEEDSPEEDSPEEDSPEED

2000200020002000 2005200520052005 2007200720072007

20 kb/sec20 kb/sec20 kb/sec20 kb/sec 50 kb/sec50 kb/sec50 kb/sec50 kb/sec 100 kb/sec100 kb/sec100 kb/sec100 kb/sec 7.2 mbit/sec7.2 mbit/sec7.2 mbit/sec7.2 mbit/sec

2009200920092009

Garanti Mobile Banking

Banking: Any Time Any PlaceBanking: Any Time Any PlaceBanking: Any Time Any PlaceBanking: Any Time Any Place

Fast and Convenient UsageFast and Convenient UsageFast and Convenient UsageFast and Convenient Usage

Same Visual Experience for All Mobile PhonesSame Visual Experience for All Mobile PhonesSame Visual Experience for All Mobile PhonesSame Visual Experience for All Mobile Phones

No Download, No ActivationNo Download, No ActivationNo Download, No ActivationNo Download, No Activation

Totally Free!Totally Free!Totally Free!Totally Free!

Garanti Mobile Banking, On every screen

How Do We Use Mobile?

Most Banking Transactions Covered by Mobile BranchMost Banking Transactions Covered by Mobile BranchMost Banking Transactions Covered by Mobile BranchMost Banking Transactions Covered by Mobile Branch

Credit CardCredit CardTransactionsTransactionsCredit CardCredit Card

TransactionsTransactionsCredit CardCredit CardSummarySummary

Credit CardCredit CardSummarySummary

Payments & Payments & Utility BillsUtility Bills

Payments & Payments & Utility BillsUtility Bills Stock ExchangeStock ExchangeStock ExchangeStock Exchange MoneyMoney

TransfersTransfersMoneyMoney

TransfersTransfers

Garanti Mobile Banking, Transactions

•Stocks

•Mutual Funds

Investment TransactionsInvestment TransactionsInvestment TransactionsInvestment Transactions

•Money Transfer to Account & Name

•Fast Money Transfer to Registered Accounts

TransfersTransfersTransfersTransfers

•Utility Bill Debt Inquiry

•Payment with Installation Number

Utility Bill PaymentsUtility Bill PaymentsUtility Bill PaymentsUtility Bill Payments

•Electronic Fund Transfer

•Municipality, Natural Gas, Electric, Company Payments, Insurance Payments, Consumer Finance Payments, Telecommunication Payments etc.

•Credit Card Information, Balance and Spending Inquiry

•Credit Card Debt Payment

Credit Card TransactionsCredit Card TransactionsCredit Card TransactionsCredit Card Transactions

•Foreign Currency Buy/Sell

FX TransactionsFX TransactionsFX TransactionsFX Transactions

•Balance and Transaction Inquiry

Inquiry ServicesInquiry ServicesInquiry ServicesInquiry Services

Garanti Mobile Banking, Now for iphone

Bonus Trink – Mobile Wallet

• Announced first PayPass Credit Card in Turkey

• First NFC Sticker in the world & NFC Watch in Europe

• Launched on January 16, 2008 (NFC) trial for mobile payments 

• A contactless MasterCard PayPass credit card application is stored on the SIM card as a secure element 

• Available in Starbucks, McDonalds, PizzaHuts and many parking and special city card projects

• Product tailoring: Credit cards example

S&MBonus PrepaidParacard

Bonus & Club & Club PriveFlexi American Express

“the common people”

Customer reflectionCustomer reflection

PersonalityPersonality

Self-imageSelf-image

Cheerful, young,

dynamic, energetic

I am clever and spend my

money in a smart way

Open-minded

Innovative, funky

Smart, individual,

aware

High spending, gives importance to status, social, prefers luxury

Charismatic, “The original”

If I fly a lot and use S&M for my

flight and shopping

purchases, i will earn miles

High expectatio

ns, high spending

Charismatic, “The

original”, makes life

easierI fly a lot

and need a personal assistant

High&worldwide spending, quality life

style

Powerful, confident

Elite, Prestigous

Thank You...

Ali Süha [email protected]

Q&A