TÜRK EKONOMİ BANKASI A.Ş. 2007 1stQ CONSOLIDATED RESULTS

TÜRK EKONOMİ BANKASI A.Ş. 2007 1stQ CONSOLIDATED RESULTS

2Türk Ekonomi Bankası A.Ş.

BNP PARIBAS JOINT VENTURE

Outline

TEB Financial Group

Türk Ekonomi Bankası

Financial Highlights

TEB Financial Group of Companies



TEB Financial Group of Companies *

TEB

TEB Leasing TEB Factoring

TEB NV

TEB Investment

TEB Asset M.

100.0% 100.0%

100.0%

100.0%

100%

TEB Financial Investments

84.3%

BNPP Çolakoğlu

50% 50%

15,7% free float

*/ Ownership percentages used in Consolidation



Growth through cross-selling

4th largest factoring company in Turkey with a 6.7% market share in the sector as of YE 2006

10th largest brokerage and investment house of Turkey with 3,37% market share as of 1Q07 (specialized in M&A’s and IPO’s )

TEB Asset Management

TEB Investment

TEB NV

3.8% market share, 9th largest leasing company in Turkey as of YE 2006

“Turkish specialist” in the EU market, total asset size is EUR 783 mio. as of 1Q07

TEB FactoringTEB Leasing

The Group manages one of the largest and best performing funds in Turkey with total AUM of EUR 460 mio. and has a market share of % 2,93 as of 1Q07.

TEB Financial Group of Companies

Türk Ekonomi Bankası



Coverage41 cities

with 202 branches

Expanding Branch Network

GDP coverage 88%

March 2007



Corporate Banking

Multinationals and corporates with over US$ 50 mio annual turnover

Contribution to results (as of 1Q07): 27.85 % of loans 24.71 % of deposits 34.10 % of customer contribution

Leader in cash management services TEB Cash Management was awarded "The Most

Innovative and Cost-effective Payments Processing Solution Award" in Excellence, in Payments Innovation Awards competition organized by the European Payments Consulting Association (EPCA).

Project Finance solutions



International Trade

3 trade centers in cooperation with BNPP trade centers network Success story of synergy: Turkish Desks in Algeria, Ukraine and Egypt Share of TEB in foreign trade (mio US$, %) (March 2007)

Undersecretariat of Foreign Trade awarded TEB with “Support of Export Award”

TEB Export TEB Share

TEB Import TEB Share

TEB Total

Volume

TEB Share in Foreign

Trade

1,815 8.94 1,959 5.21 3,774 6.45



Commercial Banking

Corporates with less than US$ 50 mio annual turnover and suppliers and customers of corporate clients

Contribution to results (as of 1Q07) : 49.12 % of loans 13.45 % of deposits 67.98 % of customer contribution

Solution partner in SMEs TEB Academy Support Line Accounting Software Consultancy Structured Loans

TEB KOBİ TV

Solution Partner in SMEs



FX30,1%

YTL69,9%

Chemicals

5.1%

Textile

12.0%

Metal

11.4%

Others

19.5%

Wholesale/Retail

7.1%

Financial Inst

3.3%

Tourism

5.3%

Transportation Veh.

3.7%

Construction

9.4%

Consumer

10.1%Misc. Services

3.9%

Food, Beverage &

Tobacco

9.2%

Bank-Only Loan Portfolio

Loan Portfolio by Industry 31.03.2007

Source: TEB, BRSA Bank-Only Accounts

Loan Portfolio by Currency 31.03.2007

Well diversified loan portfolio



Non Performing Loans

Non-Performing Loans as a % of Total Loans

Prudent approach, low NPL ratioSource: CMB of Turkey announcements and BRSA Bank-Only Accounts

2.2% 2.4%

7.2%

10.7% 11.5%

27.2%

16.5%

11.5%

6.0% 4.9%3.8%

0.0% 0.2%0.5% 0.6% 0.9%

3.8% 2.5% 2.1% 1.3% 1.1% 0.9%1.09%

0%

10%

20%

30%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007/1Q

TEB Sector Average



Retail Banking and Small Business

Accelerated growth in Retail business with BNPP joint forces

Introduction of new products Instant Credit Mobile Payment

“Bonus” credit card scheme Introduction of Small Business

Banking solutions Contribution to results (as of 1Q07) :

21.80% of loans 14,0 % retail banking, 7.8 % small business

35.50% of deposits 31.8 % retail banking, 3.7 % small business

-4.56% of customer contribution Emphasis on wealth management



Source: TEB; BRSA Bank-Only Accounts

Retail Loans

40%

41%

15%

4%

41%

29%

24%

6%

40%

25%

23%

12%

0%

25%

50%

75%

100%

2005 2006 2007/1Q

Housing Auto Consumer Credit Card

0.34%

0.56%

0.89%0.91%

0.72%

1.22%

1.38% 1.40%

0.46%

2.54%

3.27%3.36%

0%

1%

2%

3%

4%

Consumer Housing Auto

2004 2005 2006 2007/1Q

Market Share in Retail LoansRetail Loans



Private Banking

Pioneered PB services in Turkey since 1989 A sales channel dedicated to high-networth individuals with a

min.threshold of US$ 800,000 High synergy with TEB Asset Management, TEB Investment, Treasury,

Retail Banking, Commercial Banking, Corporate Banking, for sourcing new clients and product development

Discreationary and non-discreationary asset management, differentiated & tailor made PB products and services package

Total funds managed (as of 1Q07): US$1.3 billion Contribution to results (as of 1Q07):

0.11% of loans 25.69% of deposits 2.48 % of customer contribution

Aim: Tailor-made service by more focus on customers and special products

Leveraging Customer Base

Financial Highlights



Consolidated BRSA B/S Highlights

Source: TEB, BRSA Consolidated Accounts

YTL Million Share Change Share Change

Assets Liabilities

Cash & banks 20.0% 2,235 2,031 10.0% Deposits 64.7% 7,226 6,726 7.4%

M.sec + repos 13.9% 1,557 1,657 -6.0% Repos 7.2% 804 771 4.3%

Loans + Trade rec. 62.3% 6,958 6,371 9.2% Funds Borrowed 13.5% 1,506 1,397 7.8%

Other Assets 2.6% 286 133 115.0% Other Liab. 6.1% 676 488 38.5%

Fixed Assets 1.2% 130 106 22.6% Total Liabilities 91.5% 10,212 9,382 8.8%

Total Assets 100.0% 11,166 10,298 8.4%

Subordinated Loans 2.7% 298 300 -0.7%

Sh. Equity

Capital & Res. 5.5% 615 493 24.7%

Income 0.4% 41 123 n.m.

Total Sh. Equity 5.9% 656 616 6.5%

Total Liab + Equity 100.0% 11,166 10,298 8.4%

Reviewed Audited Reviewed Audited31.03.2007 31.12.2006 31.03.2007 31.12.2006



Balance Sheet Growth


Share 31.03.2007 31.12.2006 Change

AssetsYTL (mio YTL) 57.2% 6,384.64 5,627.36 13.5%FX (mio USD) 42.8% 3,464.58 3,323.11 4.3%

LoansYTL (mio YTL) 60.5% 4,211.29 3,799.23 10.8%FX (mio USD) 39.5% 1,990.50 1,711.97 16.3%

DepositsYTL (mio YTL) 35.5% 2,567.47 2,489.20 3.1%FX (mio USD) 64.5% 3,375.21 3,014.02 12.0%



Consolidated Balance Sheet Composition

Assets Liabilities


24,5%

17,5%

55,6%

2,3%

19,7%

16,1%

61,9%

2,3%

20,0%

13,9%

62,3%

3,7%

0%

25%

50%

75%

100%

2005 2006 2007/1Q

Liquid Assets Marketable Sec. Loans Other

62,0%

10,8%

15,2%

7,2%4,7%

65,3%

7,5%

14,9%

6,0%6,4%

64,7%

7,2%

14,9%

5,9%7,4%

0%

25%

50%

75%

100%

2005 2006 2007/1Q

Deposits Repos Funds Borrowed Equity Other



Loans

Source: TEB BRSA Bank-Only Accounts

∆ Volume

Corporate 1,536,243 31.5% 1,562,392 29.0% 1.7%

Commercial 2,335,416 47.9% 2,647,816 49.1% 13.4%

Big Commercial 1,410,467 29.0% 1,529,086 28.4% 8.4%SME 924,949 19.0% 1,118,730 20.8% 21.0%

Small Business 312,739 6.4% 418,721 7.8% 33.9%

Retail 678,538 13.9% 756,142 14.0% 11.4%

Private 8,589 0.2% 5,824 0.1% -32.2%

1Q 2007YE 2006



Deposits

Source: TEB BRSA Bank-Only Accounts

∆ Volume

Corporate 1,318,631 24.4% 1,499,762 25.4% 13.7%

Commercial 807,169 14.9% 795,769 13.5% -1.4%

Big Commercial 502,965 9.3% 453,079 7.7% -9.9%SME 304,205 5.6% 342,690 5.8% 12.7%

Small Business 196,631 3.6% 221,081 3.7% 12.4%

Retail 1,765,429 32.7% 1,878,355 31.8% 6.4%

Private 1,312,346 24.3% 1,519,587 25.7% 15.8%

1Q 2007YE 2006



Marketable Securities

TotalFloating Rate 67%

Fixed Rate 33%

TRY

Fixed Rate 35%

Floating Rate 65%

FC

Fixed Rate 25%

Floating Rate 75%

Source: TEB, BRSA –Bank-Only

Total

TRL; 83%

FC; 17%



Consolidated BRSA Income Statement Re-Classified


YTL Million Change

Interest Income 354.9 192.3 84.6%

Interest Expense -227.6 -108.9 109.0%

FX Gains / (Losses), net -8.2 -7.4 10.8%

Loan Loss and General Provisions -12.3 -6.7 83.6%

Adjusted Net Interest Income 106.8 69.3 54.1%

Net Trading Income 6.5 16.9 -61.5%

AUM 6.1 9.1 -33.0%

Securities Trading 0.4 7.8 -94.9%

Net Fees, Comm. & Other Operating Income 44.8 29.8 50.3%

Net Fees, Commissions Income 36.8 22.4 64.3%

Other Operating Income 8.0 7.4 8.1%

Non-interest Income 51.3 46.7 9.9%

Non-interest Expense -105.6 -63.6 66.1%

Operating Profit 52.5 52.4 0.1%

Provision for Taxes on Income -11.6 -15.7 -26.3%

Net Income / (Loss) 40.9 36.7 11.4%

Reviewed Reviewed31.03.2007 31.03.2006



Profitability Ratios

Adjusted Net Interest Margin */

ROE (net) ROA (net)

Cost / Income


*/ Adj. Net Int. Margin: (Net int. income+net comm. income fm cash loans-prov.s for loans and other+gain/loss) / Interest Earning Assets

3.80%

3.90%

3.20%

3.96%

0% 2% 4%

2004

2005

2006

2007/1Q

63.2%

61.0%

63.9%

63.5%

0% 20% 40% 60% 80%

2004

2005

2006

2007/1Q

1.10%

1.70%

1.43%

1.53%

0% 1% 2% 3%

2004

2005

2006

2007/1Q

13.70%

22.10%

22.03%

25.73%

0% 10% 20% 30% 40%

2004

2005

2006

2007/1Q



Marketable Sec. / Assets

Ratios

Loans / Deposits


Capital Adequacy Ratio

72.30%

91.30%

94.72%

96.27%

0% 25% 50% 75% 100%

2004

2005

2006

2007/1Q

8.9%

17.1%

16.1%

13.90%

0% 5% 10% 15% 20%

2004

2005

2006

2007/1Q

14.3%

16.27%12.3%

13.76%

14.3%

13.00%13.6%

12.01%

0% 4% 8% 12% 16%

2004

2005

2006

2007/1Q

Bank- Only Consolidated



Contact Details

Investor Relations+90 212 2512121http://www.teb.com.tr

Levent Çelebioğlu (ext. 1341)[email protected]

Çiğdem Başaran (ext. 1532)[email protected]



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 EKONOMİ BANKASI A.Ş. 2007 1stQ CONSOLIDATED RESULTS

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