2019 FIRST HALF HIGHLIGHTS REPORT CONTENTS

2 CORPORATE PROFI LE 8 H I GHLI G H T S O F 22 CONTACTS BUSI NESS LI NES Profile of the Bank Shareholding Structure Corporate and Commercial Banking

4 KEY FI NANCI A L S O F Project and Cross Border Finance THE HALF YEAR OF ICBC Securities & 2019

Financial Institutions Business

International Business (Trade Finance)

Treasury

Retail Banking Industrial and Commercial Bank of China ICBC

CORPORATE PROFILE

PROFILE OF THE BANK Share transfer was realized on banking services through its retail SHAREHOLDING the date of May 22nd, 2015 by and corporate internet banking STRUCTURE ICBC Turkey Bank A.Ş. (formerly Extraordinary General Assembly. and mobile banking.

2019 FIRST HALF HIGHLIGHTS REPORT CORPORATE PROFILE named as Tekstil Bankası A.Ş.) Shareholding structure of our was incorporated as a privately The trade name of our Bank On the other hand, ICBC Turkey Bank as of the date of 30.06.2019 owned bank and authorized has been changed from “Tekstil Yatırım Menkul Değerler A.Ş., is mentioned below. to accept deposits, on April 29th, Bankası A.Ş.” to “ICBC Turkey Bank 99.998% of which is owned by the 1986 and started its operations A.Ş.” pursuant to the general Bank, provides capital markets Trade Name of the Shareholder Shareholding Amount (TL) Share (%) on October 13th, 1986. assembly resolution taken on and investment banking services November 5th, 2015. out of the banking services. Industrial and Commercial Bank of China Limited (ICBC) 798,428,227 92.84

Shares of the Bank have started Tekstil Portföy Yönetimi A.Ş., Public 61,571,773 7.16 publicly traded and listed on ICBC has been incorporated in 100% of the share capital of which Grand Total 860,000,000 100.00 Borsa (İstanbul Stock the People’s Republic of China is held by ICBC Turkey Yatırım Exchange - BIST) as of in 1984 and it provides a broad A.Ş., has been incorporated on May 23rd, 1990. range of financial products and the date of April 21st, 2015 and services to its customers. By cross by the resolution taken at the

The Bank belonged to GSD markets, an international and extraordinary general assembly PROFILE CORPORATE REPORT HIGHLIGHTS HALF 2019 FIRST Group until May 21st, 2015. With integrated business model has meeting held on November its resolution dated April 2nd, 2015 been formed. Shares of ICBC 5th, 2015, its trade name has and numbered 6262, the Banking have been listed on Hong Kong been changed as “ICBC Turkey Regulation and Supervision Stock Exchange and Shanghai Portföy Yönetimi A.Ş.”. Main field Agency (the BRSA) authorized Stock Exchange concurrently, in of activities of the company the transfer of all of the shares October 2006. is to establish and manage owned by GSD Holding A.Ş. investment funds. corresponding to 75.5% of the Our Bank conducts its operations Tekstil Bankası A.Ş.’s shares, to through its Head Office located Industrial and Commercial Bank in İstanbul and 44 branches of China Limited (ICBC), domiciled nationwide. Aside from its at the People’s Republic of China. branches, the Bank also provides

2 3 Industrial and Commercial Bank of China ICBC TURKEY

KEY FINANCIALS OF THE FINANCIAL INFORMATION SUMMARY FOR A HALF YEAR OF 2019 PERIOD OF FIVE YEARS (CONSOLIDATED):

CONSOLIDATED SELECTED FINANCIAL INDICATORS TL Thousand 30 June 2019 31 December 2018 31 December 2017 31 December 2016 31 December 2015

Financial Indicators (TL Million) Total Assets 17,024,764 15,852,490 13,315,560 8,308,619 6,670,222 Total Deposits (1) 8,173,654 6,699,689 3,273,860 2,850,077 2,134,512 Total Assets Deposits(1) Loans 2019 FIRST HALF HIGHLIGHTS REPORT KEY FINANCIALS 30.06.2019 30.06.2019 30.06.2019 Total Loans 8,551,051 7,874,592 7,680,821 5,098,106 4,150,620 17,025 8,174 8,551 Shareholders’ Equity 1,259,905 1,166,569 1,112,294 607,007 597,194 Net Profit 47,639 83,549 48,283 18,749 (13,542) 31.12.2018 31.12.2018 31.12.2018 15,852 6,700 7,875 (1) Excluding deposits from banks 7% 22% 9% increase increase increase

Shareholders’ Equity Net Profit ASSESSMENT OF THE • Total securities portfolio of • Total deposits and funds of 30.06.2019 30.06.2019 BANK’S POSITION IN our Bank increased by 3.2% our Bank increased by 10.4% 1,260 47.6 THE SECTOR whereas the total securities whereas the total deposits portfolio of the sector and funds of the sector 31.12.2018 31.12.2018 KEY FINANCIALS KEY REPORT HIGHLIGHTS HALF 2019 FIRST 1,167 83.5 Compared with the data (as of increased by 24.4%. increased by 13.7%. December 2018 and May 2019) 8% 43% increase decrease released by Banking Regulation • Total loans of our Bank • Non-cash loans of our Bank and Supervision Agency (BRSA) increased by 8.8% whereas increased by 92.5% whereas Financial Ratios % in its “Banking Sector Monthly the total loans of the sector the total non-cash loans of the

Return on Assets Return on Equity Capital Adequacy Ratio Bulletin”, our Bank’s position in the increased by 6.8%. sector increased by 5.1%. 30.06.2019 30.06.2019 30.06.2019 sector is as follows: • Total non-performing loans 0.6 7.9 23.9 • The cash equivalents of (gross) of our Bank decreased

31.12.2018 31.12.2018 31.12.2018 our Bank increased by 8.0% by 2.0% whereas the total 0.3 3.3 30.2 whereas the CBRT and cash non-performing loans of the 30bp 460bp 630 bps equivalents of the sector sector increased by 21.3%. increase increase decrease increased by 15.6%.

Cost/Income ratio Deposits/Total Assets (1) NPL Ratio 30.06.2019 30.06.2019 30.06.2019 50.2 48.0 1.1

31.12.2018 31.12.2018 31.12.2018 49.7 42.3 1.2

50bp 570bp 10bp increase increase decrease

(1) Excluding deposits from banks

4 5 Industrial and Commercial Bank of China ICBC TURKEY

TL Million 30 June 2019 31 December 2018 Change

ICBC Turkey Sector¹ ICBC Turkey Sector¹ ICBC Turkey Sector¹

Cash Equivalents and the CBRT 1,952 258,826 1,807 223,971 8.0% 15.6%

Placements with the Banks and Receivables 1,686 196,624 2,023 183,366 (16.6)% 7.2% from the Money Markets

Securities Portfolio 3,985 588,788 3,860 473,219 3.2% 24.4%

2019 FIRST HALF HIGHLIGHTS REPORT KEY FINANCIALS Loans 8,515 2,548,020 7,829 2,385,194 8.8% 6.8%

Loans (Including Non-performing Loans) 8,528 2,582,950 7,844 2,413,211 8.7% 7.0%

Non-performing Loans (Gross) 91 111,416 93 91,845 (2.0)% 21.3%

Special Provision for the Non-performing Loans 78 76,485 78 63,828 (0.6)% 19.8%

Total of Deposits and Funds 9,059 2,268,835 8,208 1,995,199 10.4% 13.7%

Non-Cash Loans 4,564 821,164 2,371 782,122 92.5% 5.1%

Total Assets 16,186 4,269,772 15,525 3,842,639 4.3% 11.1%

¹ Based on the data taken from BRSA’s May 2019 Monthly Sector Bulletin dated 4 July 2019. KEY FINANCIALS KEY REPORT HIGHLIGHTS HALF 2019 FIRST

INFORMATION ON THE • Total consolidated loans were • The consolidated return on FINANCIAL POSITION, approximately TL 8.5 billion assets was 0.6% in this period 30 June 2019 31 December 2018 Change PROFITABILITY AND and constituted 50% of the whereas it was 0.3% at the SOLVENCY OF THE balance sheet. end of 2018; the consolidated ICBC Turkey Sector¹ ICBC Turkey Sector¹ ICBC Turkey Sector¹ BANK return on equity was 7.9% in

Total Loans/Total Assets 53% 60% 50% 62% 4.3% (3.9)% • Total consolidated deposits this period whereas it was As of June 2019, based on were TL 8.9 billion. 3.3% at the end of 2018. Total Deposits/Total Liabilities 56% 53% 53% 52% 5.9% 2.3% the consolidated financial statements prepared in • The share of our consolidated • Consolidated capital Securities/Total Assets 25% 14% 25% 12% (1.0)% 12.0% accordance with the regulations deposits in consolidated total adequacy ratio was 23.9%. Non-performing Loans Ratio 1% 4% 1% 4% (9.8)% 13.0% of BRSA; assets is 52%.

Liquid Assets/Total Assets 22% 11% 25% 11% (8.9)% 0.6% • The Bank’s consolidated asset • The consolidated net profit for Non-cash Loans/Total Cash Loans 54% 32% 30% 32% 77.0% (1.9)% size reached approximately the first six months of 2019 was TL 17 billion. TL 47.6 million. ¹ Assessments are on solo basis.

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CORPORATE AND COMMERCIAL BANKING

In the first half of 2019, the main focus of ICBC Turkey Corporate Banking is long lasting, strong business relationship with the customer-oriented service approach. 2019 FIRST HALF HIGHLIGHTS REPORT H

Net fees & commissions of ICBC Turkey, in Corporate Banking Cash Management Unit very important to support Chinese Business Segment, have adhered adopted dissemination policy enterprises in Turkish market and Corporate Banking increased to strong comprehensive as its priority goal in 2019 while become their main bank in Turkey. by 191% strength and advanced risk providing innovative products ICBC Turkey also promotes Turkish management approach, and platforms to customers. investors in many aspects from relationship with ICBC Group

created brilliant performance, To gain market share in the RMB transfers to participation in Entities for providing service LINES BUSINESS OF IGHLIGHTS and significantly promoted sector, collections have started China Expo Fair with information quality and differentiating service

IGHLIGHTS OF BUSINESS LINES market-oriented bank status with additional institutions. and relationship support. to customers. For the first time, in development of corporate In addition, online account asset transfer of a bilateral loan business. statement service was launched SUCCESSFUL RESULTS was achieved successfully. through Web Service Agreements Corporate Banking takes it as with new various institutions. Tax collection volume increased The Corporate Banking maintains a duty to assist its esteemed 327% and Batch Bank Transfers an effective risk management companies in further expanding LEADING ROLE and EFT volume increased 120% approach with constant risk 2019 FIRST HALF HIGHLIGHTS REPORT H REPORT HIGHLIGHTS HALF 2019 FIRST financing channels, optimizing BETWEEN TURKISH compared to the same period monitoring practices. NPL ratio financing structure, and AND CHINESE of the previous year while the of Corporate Banking is 0.93%, improving financing efficiency. COMPANIES number of active companies in which is the lowest NPL ratio in In this sense, it is aimed to internet banking was up by 13%. the sector. increase resource allocation, Corporate Banking takes a The income of tax collection, ensure financing service time leading role about bringing SSI collection and Bill Payment In 2019, main focus of Corporate based on customers’ specific Turkish corporate companies Collections are increased by more Banking Business Line is on financing needs, fully support together with Chinese companies than 100%. income earning side. Thus, net them in domestic and foreign which would like to operate in fees&commissions of Corporate currency financing rate and Turkey or invest in Turkey through The target as Corporate Banking Banking increased by 191% for the conditions, and guarantee their mergers and acquisitions. As a is to improve and strengthen its related period compared to the capital needs. Chinese financial institution, it is same period of previous year.

8 9 Industrial and Commercial Bank of China ICBC TURKEY

PROJECT AND CROSS BORDER FINANCE

Based on the fact that the private sector investments are concentrated around energy and infrastructure sectors in the first half of 2019, ICBC Turkey has followed the market dynamics. 2019 FIRST HALF HIGHLIGHTS REPORT H

ICBC Turkey, which entered the institutions has both domestic and Having a balanced energy portfolio integrated. The project will play a is one of the most recent and investment of USD 1.8 billion, the Turkish banking sector in 2015, international aspects. which consists of coal-fired, wind, key role in new "Silk Road" route. most important examples of this Project is China’s largest ever direct aims to develop and grow local hydro, solar and geothermal power Having a Signing Ceremony on presence. investment in Turkey. The Signing experience using its international With its portfolio-based and plant financings; and focusing on May 9, 2019 at the EBRD’s Annual Ceremony of the USD 1.3 billion of know-how and global network customer-oriented service energy projects either backed by Meeting taken place at Sarajevo Having a total investment of Sinosure-covered financing has in the Turkish banking market. approach Project and Cross Border the government via FIT mechanism was also a part of this excitement. USD 1.8 Billion, the Hunutlu taken place in Shanghai on March LINES BUSINESS OF IGHLIGHTS In line with this target, the Finance provides services in the or having risk coverage mechanisms Project is China’s largest ever 29, 2019. ICBC Turkey is very proud IGHLIGHTS OF BUSINESS LINES cooperation with international area of developing project finance like Sinosure, or infrastructure Energy is one of the most of being a part of this landmark direct investment in Turkey. financial institutions like EBRD, strategies that are in line with projects backed by the government highlighted sectors for boosting transaction together with China IFC and international banks like the Bank's overall strategies and via traffic or passenger guarantees, bilateral economic partnerships Development Bank and Bank of BofAML and Standard Chartered market targets. or financing needs of state-owned between Turkey and China, in EMBA Elektrik is a joint venture China. on large-scale project finance companies providing Treasury addition to transportation. company established by Chinese transactions in renewable energy Based on the fact that the guarantee have served to this end. Since foreign direct investment Shanghai Electric Power Co. Ltd., and infrastructure sectors has been private sector investments are to the Turkish energy sector has Avic-Intl Project Engineering 2019 FIRST HALF HIGHLIGHTS REPORT H REPORT HIGHLIGHTS HALF 2019 FIRST continuously increasing. concentrated around energy Thanks to the strategic been on the rise for more than Company, and two Turkish local and infrastructure sectors in the partnership with EBRD, Railport is a decade, totaling USD 15 billion investors to invest in the 1,320 MW ICBC Turkey has also conducted first half of 2019, ICBC Turkey has the first private inland terminal in the 2002-2017 period, because Hunutlu Project. Having a total studies with these organizations followed the market dynamics. in Turkey that was financed with of the favorable investment in the first half of 2019 to follow Since risk mitigation is always ICBC equal share by EBRD and ICBC. climate and political support, up both Turkish and Chinese Turkey’s priority, all transactions ICBC Turkey was involved in this Chinese energy companies have companies’ investments and to be added to the loan portfolio landmark transaction since also increased their presence in business activities in Turkey have been prudently selected the project leads to material the country's energy industry. and the neighboring region. In after careful consideration. That quality improvements of the EMBA Elektrik’s Hunutlu Coal Fired this sense, it can be said that is to say the Team has focused on current infrastructure services Power Plant Project to be located the Bank’s cooperation with balance between risk and income between and within regions in Yumurtalık district of Adana, these international financial while meeting the market demand. that are currently inadequately at the Iskenderun Bay area,

10 11 Industrial and Commercial Bank of China ICBC TURKEY

ICBC SECURITIES & INVESTMENT BANKING

Our focus will remain on innovation to maintain our sustainable growth, while we will emphasize compliance and efforts to maintain good relations with local counterparties. 2019 FIRST HALF HIGHLIGHTS REPORT H

During 1H 2019 ICBC Securities equity half of 2019. continued to develop its - 11th in net profit In order to promote Yuan as a investment banking business - 7th in ROE among 66 peer reserve currency in Turkey, we further both on the corporate companies. have developed Yuan/TL futures client segments and on the retail in cooperation with Borsa

and institutional brokerage During 1H 2019, ICBC Securities Istanbul. Trading volume of LINES BUSINESS OF IGHLIGHTS segments. During this period arranged EUR 1 billion syndication contracts realized as 200 million

IGHLIGHTS OF BUSINESS LINES major ongoing prejects were; for Turkey Wealth Fund as lead Yuan in 2018 and reached bookrunner and coordinator 120 million Yuan in 1H2019. - Refinancing of 3rd with the participation of 10 Bosphorus Bridge leading global banks where ICBC ICBC Asset Management - Northern Marmara participated with EUR 300 million. subsidiary managed 6 mutual Highway financing funds and 1 pension fund - Syndications for We also arranged and successfully, reaching total AUM 2019 FIRST HALF HIGHLIGHTS REPORT H REPORT HIGHLIGHTS HALF 2019 FIRST and YapıKredi participated in the financing of size of TL 490 millions at the end - Enlarging OTC client base Tatlıpınar WPP project with a total of 1H2019 with a 10% increase in and income commitment of USD 15 million 6 months. - Developing international and arranged a club including brokerage client business further Vakıfbank and for the privatisation financing of TKD HPP According to 1Q 2019 ranking with a total commitment of EUR results announced by CMB, ICBC 50 million cash and TL 75 million Securities ranked; non cash facility.

- 2nd in investment banking OTC client income showed income a remarkable progress and - 14th largest in shareholders' surpassed TL 9 million in the first

12 13 Industrial and Commercial Bank of China ICBC TURKEY

FINANCIAL INSTITUTIONS BUSINESS

In the first half of 2019, despite the slowdown in the Turkish market, ICBC Turkey has continued its strategy as being the bank of banks. 2019 FIRST HALF HIGHLIGHTS REPORT H

In the first half of 2019, ICBC As the largest bank in China and customers and their projects Turkey disbursed bilateral loans indeed the world, ICBC operates in the countries assigned by to Türk Eximbank and , in 47 countries and territories ICBC HQ as well as neighboring for the amount of USD 350 through its internationalized countries and regions, and million with 3 years tenor and and diversified operating model supports them with various USD 50 million with 2 years tenor, and international operations. financing models, risk sharing

respectively. Additionally, ICBC Group programs, innovative business LINES BUSINESS OF IGHLIGHTS operates in 20 African countries solutions and ICBC’s global

IGHLIGHTS OF BUSINESS LINES Thereafter the total amount through its shares in the network. of Turkish financial institutions' Standard Bank of South Africa. assets invested in the first half The total amount of Turkish of 2019 reached around USD 450 ICBC Turkey offers the influence financial institutions' assets million. of its parent’s extensive network invested in the first half of 2019 of services and experience reached around USD 450 million. In addition to the existing in international trade and 2019 FIRST HALF HIGHLIGHTS REPORT H REPORT HIGHLIGHTS HALF 2019 FIRST rewarding relationships that settlements, providing wide the Bank has enjoyed since access to global resources and the acquisition, the Financial competitive advantages in the Institutions Business team trade finance avenues, while meticulously considers adding also providing its customers new names to its portfolio of with the opportunity not only to selected clients to cooperate have their transactions executed with them on the fields of flawlessly but also to obtain syndication, bilateral loan, trade structured funding facilities in finance, treasury and other DCM international markets. businesses to offer cross-selling to other ICBC Group banks for ICBC Turkey follows the footprints the benefit of all parties. and operations of its selected

14 15 Industrial and Commercial Bank of China ICBC TURKEY

INTERNATIONAL BUSINESS

In the first half of 2019, International Business maintained the role of being the most important player for foreign trade between China and Turkey. 2019 FIRST HALF HIGHLIGHTS REPORT H

ICBC Turkey’s International Supporting trade settlement Supporting Chinese companies’ Business team makes use of ICBC between China and Turkey with participation in Turkish Group’s wide global coverage. direct remittance which provides projects or Turkish companies’ Smooth communication high efficiency and low cost. participation in China with “One network of the group enables ICBC” principle. an efficient money transfer Offer a wide range of Trade

workflow. Working with ICBC’s Finance products including letter ICBC pays utmost attention LINES BUSINESS OF IGHLIGHTS “One ICBC” service approach, of guarantee, LC issuance, pre- to customer satisfaction and

IGHLIGHTS OF BUSINESS LINES we are providing our clients and shipment loan, packing loan, creating added value. With that counterparties solutions on trade discounting, forfaiting covering in mind, International Business finance business. all stages of international trade we aimed to offer tailor made life-cycle. business specific financial In the first six months, ICBC solutions for our clients. Turkey maintained the role of being the most important player 2019 FIRST HALF HIGHLIGHTS REPORT H REPORT HIGHLIGHTS HALF 2019 FIRST for foreign trade between China and Turkey. This was achieved this by focusing on:

16 17 Industrial and Commercial Bank of China ICBC TURKEY

TREASURY

A quality-oriented service approach in financial markets management is the main pillar behind ICBC Turkey’s popularity in treasury transactions. 2019 FIRST HALF HIGHLIGHTS REPORT H

In the US, the markets have about level of central bank FX and international markets. ALM’s TL and foreign currency markets, FINANCIAL MARKETS the monetary policy decisions priced in interest rate cuts due reserves, new regulations related responsibilities include manage- and fulfilling the ICBC Turkey’s TL of developed countries’ central to increasing downside risks to FX markets, etc. ment of liquidity for all curren- and foreign currency denominat- Financial Markets Team (FMT) banks and the concerns about from slowing global growth, cies in use with money market ed reserve requirements. serves customers in all segments global growth dominated the trade tensions and sluggish In addition to economic risks, transactions, bond transactions in three main areas–spot direction of global financial inflation outlook. In EU, indicators Turkish markets were also and performing the Fund Transfer On the global front, the foreign exchange (FX), bond markets. As the monitoring

of economic activity pointed affected by deteriorating Pricing function and allocation of expectations of a new easing and derivative businesses-via and managing FX position of LINES BUSINESS OF IGHLIGHTS to a slowdown in the region’s international relations with funds for the ICBC Turkey’s other cycle by central banks in branches, alternative delivery the balance sheet including the

IGHLIGHTS OF BUSINESS LINES economy, which forces EU to keep the US due to purchasing of business units, in order to man- developed markets stand as channels or by direct contact trading and banking book, FMT its expansionary stance. The S-400 Russian missile defense age the currency, interest rate an opportunity for emerging with clients. Since 2015, in line maintains a policy of not carrying expansionary monetary policies system and associated threat and maturity sensitivities during markets including Turkey to boost with ICBC Turkey’s strategy FMT any overnight FX exposure arising of the developed countries’ of US sanctions, US and EU’s the process of loan disbursement liquidity and capital inflows. In focused its business mainly on from agency business by covering central banks led to increasing probable sanctions on Turkey and deposit collection. Following local markets, the tight financial large corporates. The team all transactions back-to-back in global risk appetite and positive related to its natural gas and oil the increased market volatility in conditions could start to loosen also informs clients about the interbank markets on the same impact on emerging markets. drilling activities in the Eastern 2018, in early 2019 Turkish markets in the second half of the year developments and expectations day. Despite challenging market 2019 FIRST HALF HIGHLIGHTS REPORT H REPORT HIGHLIGHTS HALF 2019 FIRST Mediterranean. have gone through an episode given the relative retreat in in their financial markets and conditions, FMT has managed Turkey, on the other hand, of recovery. In the latter part of inflation and a start of an easing aims to structure products to increase its number of clients decoupled from other emerging ASSET AND LIABILITY the first half of the year, increased cycle by the CBRT. ICBC Turkey's tailored to risk management by 87% and its client business markets in the first half of 2019 MANAGEMENT risks caused volatility to slightly current liquidity condition will needs and business conduct of volume by 44% in the first half of due to negative factors such rise. Making full use of ICBC’s enable the Bank to meet the clients. 2019 compared to the first half as local elections, renewal of Asset and Liability Management global network, ALM continued demands of the Bank's business of 2018. local elections, concerns about (ALM) acts in line with the Bank’s to raise funds with favorable lines smoothly. Furthermore, in While managing the risks arising monetary policy transparency overall prudent growth strategy maturity and cost structure so order to widen the range of our from local and global economic of CBRT, an anomaly in offshore to achieve sustainable profit- that contributions to the Bank’s funding channels, ALM will seek conditions, FMT kept its cautious TL swaps market targeting to ability by managing interest and balance sheet remains elevated. opportunities to tap into Turkish stance in the first half of 2019. In cap the Lira’s fall prior to March exchange rate risks and exercising ALM also acted in line with CBRT’s private sector bond market. the first half of 2019, the ongoing municipality election, concerns dynamic pricing strategies in local monetary policy actions, to utilize trade talks between US-China,

18 19 Industrial and Commercial Bank of China ICBC TURKEY

RETAIL BANKING

In this economic environment, ICBC Turkey Retail Banking focused on increasing deposit volume (especially demand deposit), number of active customers, asset quality and number of digital banking customers. 2019 FIRST HALF HIGHLIGHTS REPORT H

Retail Banking business has been confidence index, retail customers NEW PRODUCTS acceptance has started. Mobile prioritized at ICBC Turkey since prefer not to take any risks and do AND SERVICES Banking Campaign (for branches) acquisition. Main strategy of not plan to invest in short term. was designed and launched in ICBC Turkey Retail Banking is; due Decreasing domestic consumption Daily time deposit account February 2019. In order to increase to being a smaller bank in the and the pricing policy of the State (an innovative product which branch personnel efficiency, Piece

Turkish market arena to seek to Banks have also been effective combines demand and time by Piece Incentive Model has been LINES BUSINESS OF IGHLIGHTS be an attractive bank in selected in decreasing the loan share of deposit) is launched in order to revised and published. The model

IGHLIGHTS OF BUSINESS LINES areas where a niche market can Private Banks. increase active retail customer has been optimized with the be exploited. ICBC Turkey aims number and deposit volume. measures taken. at laying the fundamentals for In this economic environment, a good retail banking business ICBC Turkey Retail Banking is In order to increase customer Retail Banking started to serve infrastructure, diversifying its sales focused on increasing deposit satisfaction and reduce SME segment customers. In this and service channels with digital volume (especially demand operational work for branches, context, necessary workflows and banking, while enjoying the lower deposit), number of active Account Opening Documents and documents were prepared and 2019 FIRST HALF HIGHLIGHTS REPORT H REPORT HIGHLIGHTS HALF 2019 FIRST cost structure of having small customers, asset quality and Procedures were simplified for announced to all branches. number of branches. number of digital banking both local and foreign customers. customers: To increase the marketing ability Main goals of ICBC Turkey until the ICBC Turkey mobile banking has and competitiveness of branches; end of 2020 are the enhancements - Total Retail Deposit balance leaped forward in the first half of; increased by 25%. of 2019 with an increase of 118% • Operational process and - One open product customer in active user number. The ratio workflow of mortgage loan • Number of active customers number increased by 4%. of financial transactions realized with pre-interest payments • Income share in total of the - Active customer number over mobile banking has increased have been revised and Bank increased by 14%. from 7% to 32% in the first half of announced to all branches. • Adequate deposit volume for - Car Loan NPL decreased from 2019. • School Payments funding needs 3.4% to 2.2%. Implementation Instruction - Mobile Branch active customer All necessary processes and has been updated. In addition, Due to reasons of current number increased by 118%. developments regarding School Payments proposal has economic environment of Turkey citizenship applications for been prepared for branches in such as fluctuation in exchange foreigners have been completed order to acquire customers and *The changes are calculated by comparing rates and decrease in consumer December 2018 and June 2019 figures. in February 2019 and application institutions easily.

20 21 Industrial and Commercial Bank of China ICBC TURKEY

CONTACTS

ADDRESS AND PHONE NUMBERS OF HEAD OFFICE AND BRANCHES

Branch Name Address Telephone Branch Name Address Telephone

Head Office Maslak Mah. Dereboyu/2 cad. No:13 Sarıyer/İSTANBUL 0 212 335 53 35 Merkez Branch Maslak Mah. Dereboyu/2 Caddesi No:13 Sarıyer/İSTANBUL 0 212 335 53 35

2019 FIRST HALF HIGHLIGHTS REPORT CONTACTS Adana Branch Cemalpaşa Mah. Atatürk Caddesi Ceyhan Apt No:72/A Seyhan/ADANA 0 322 459 58 70 Güneşli Branch Evren Mah. Koçman Caddesi No:54/B Bağcılar/İSTANBUL 0 212 630 80 52

Ankara Branch Aziziye Mah. Cinnah Caddesi No:100/A Çankaya/ANKARA 0 312 440 69 80 Levent Branch Levent Mah. Levent Caddesi No:4 Beşiktaş/İSTANBUL 0 212 284 08 04

Oruç Reis Mah. Tekstilkent Cad. No: 10-T İş Hanı Blok No: 11 Necatibey Branch Korkutreis Mah. Necatibey Caddesi No:40/A Çankaya/ANKARA 0 312 232 17 60 Tekstilkent Branch 0 212 438 04 44 Esenler/İSTANBUL Ostim Branch Ostim OSB Mah. Uzay Çağı Caddesi No:82/A-2 Yenimahalle/ANKARA 0 312 386 04 50 Maltepe Branch Bağlarbaşı Mah. Bağdat Caddesi. No:382/B Maltepe/İSTANBUL 0 216 383 35 60 Şirinyalı Mahallesi, İsmet Gökşen Caddesi Elif Apartmanı No:14A Antalya Branch 0 242 316 42 30 Fenerbahçe Mah. Dr. Faruk Ayanoğlu Caddesi Çağdaş Apt No:15/B Muratpaşa/ANTALYA Dalyan Branch 0 216 411 14 90 Kadıköy/İSTANBUL Aydın Branch Zafer Mah. Doğu Gazi Bulvarı No:55/C Efeler/AYDIN 0 256 215 27 71 İkitelli Organize Sanayi Bölgesi Mah. Bağcılar-Güngören Sanayi Sitesi Metro İkitelli Branch 0 212 458 98 98 AVM B Blok No:1/B, İç Kapı No: 11 Başakşehir/İSTANBUL Balıkesir Branch Eski Kuyumcular Mah., Bankalar Sokak No:5 Karesi/BALIKESİR 0 266 249 37 61 Pangaltı Branch Halaskargazi Cad. Badur İşhanı No:20/A Şişli/İSTANBUL 0 212 343 97 50

Bursa Branch Ahmetpaşa Mah. Fevzi Çakmak Caddesi No:69/B Osmangazi/BURSA 0 224 250 41 00 CONTACTS REPORT HIGHLIGHTS HALF 2019 FIRST Beşiktaş Branch Cihannuma Mah. Barbaros Bulvarı No:85/A Beşiktaş/İSTANBUL 0 212 236 73 07 Denizli Branch Saraylar Mah. Gazi Mustafa Kemal Bulvarı No:50A Merkezefendi/DENİZLİ 0 258 242 12 04 Kozyatağı Branch Sahrayıcedit Mah. Atatürk Cad. No:32/1-2 Kadıköy/İSTANBUL 0 216 363 17 25 Eskişehir Branch Sakarya Cad. No 22/A Tepebaşı/ESKİŞEHİR 0 222 221 67 21 Taksim Branch Abdülhakhamit Caddesi No : 25 Beyoğlu/ İSTANBUL 0 212 250 61 51 İskenderun Branch Çay Mah. 5 Temmuz Caddesi 5 Temmuz Apt. No:11/A İskenderun/HATAY 0 326 614 08 88 İstanbul Endüstri ve Ticaret Serbest Bölgesi Hakkı Matraş Cad. No:18 Haraparası Mah. Yavuz Sultan Selim Caddesi İstanbul Endüstri ve Ticaret Serbest Bölge Branch 0 216 394 26 19 Antakya Branch 0 326 225 37 40 Tuzla/İSTANBUL H. Çuhadaroğlu İş Merkezi No:11/D Antakya/HATAY İzmir Branch Akdeniz Mah. Cumhuriyet Bulvarı No:116 Konak/İZMİR 0 232 489 40 51 Merter Tekstil Merkezi Fatih Caddesi M.Nesih Özmen Mahallesi No:31 Merter Branch 0 212 637 41 31 Merter Güngören/İSTANBUL Bostanlı Branch Bostanlı Mah. Cengiz Topel Caddesi No:36/B Karşıyaka/İZMİR 0 232 330 98 00 Caddebostan Mah. Bağdat Caddesi İl-Ör Apt. No:258/A Göztepe Kadıköy Branch 0 216 418 01 13 Kadıköy/İSTANBUL Bornova Branch Manavkuyu Mah. Sakarya Cad. No:72 Bayraklı/İZMİR 0 232 342 89 12

Etiler Branch Etiler Mah. Nispetiye Caddesi No: 61 Beşiktaş/İSTANBUL 0 212 257 76 04 Kayseri Branch Cumhuriyet Mah. Millet Caddesi No:33/D Melikgazi/KAYSERİ 0 352 221 12 42

Ümraniye Branch Atatürk Mah. Alemdağ Caddesi No:48/A Ümraniye/İSTANBUL 0 216 316 70 72 Konya Branch Büyük Sinan Mah. Ankara Cad. No:124 Karatay/KONYA 0 332 238 57 29

Çankaya Mah. İsmet İnönü Bulvarı Canatan İş Merkezi No:112/B Bayrampaşa Branch Yenidoğan Mah. Abdi İpekçi Caddesi No:26 Bayrampaşa/İSTANBUL 0 212 501 67 00 Mersin Branch 0 324 237 82 84 Akdeniz/MERSİN Moda Branch Caferağa Mah. Moda Caddesi No:180/A Kadıköy/İSTANBUL 0 216 349 81 85 Bodrum Branch Yeniköy Mah. Kıbrıs Şehitleri Caddesi No:102/A,B,1 Bodrum/MUĞLA 0 252 313 58 50 Bakırköy Branch İstanbul Cad. 36/A No:1 Bakırköy/İSTANBUL 0 212 660 01 60 Samsun Branch Kale Mah. İstiklal Caddesi No:21/19 İlkadım/SAMSUN 0 362 435 02 42 E-5 Küçükyalı Branch Aydınevler Mah., Kaptan Rıfat Sokak No:3 Küçükyalı Maltepe/İSTANBUL 0 216 518 00 90 Trabzon Branch Kahramanmaraş Cad. No:31 Ortahisar/TRABZON 0 462 326 51 91 Teşvikiye Branch Teşvikiye Mah. Hüsrev Gerede Caddesi Sema Apt No:92A Şişli/İSTANBUL 0 212 259 17 63 Uşak Branch İslice Mah. İsmetpaşa Caddesi No:43/A Merkez/UŞAK 0 276 227 74 90 Avcılar Branch Merkez Mah. E-5 Yanyol No:159 A Avcılar/İSTANBUL 0 212 593 42 70

22 23 Industrial and Commercial Bank of China

ICBC TURKEY CONTACT PERSONS

Name-Surname Department E-Mail Address Phone Number

Özge AKCAN Corporate Banking [email protected] 0 212 335 55 37

Mine KEÇELİ Project and Cross Border Finance [email protected] 0 212 335 51 93

F. Evrim ÇEBİ Retail Banking [email protected] 0 212 335 55 23

2019 FIRST HALF HIGHLIGHTS REPORT CONTACTS M. Türker TUNBİŞ Digital Banking [email protected] 0 212 335 51 56

Semin DÜLEK Financial Markets [email protected] 0 212 335 51 82

Guang LI Financial Institutions Business [email protected] 0 212 335 52 25

Jun DING International Business [email protected] 0 212 335 52 89

Chuanling Zhang Investment Banking [email protected] 0 212 335 50 28

ICBC SECURITIES CONTACT PERSONS

Name-Surname Department E-Mail Address Phone Number

Cemil AKINÇ Domestic Sales and Marketing [email protected] 0 212 276 27 27

Hakan BOZYİĞİT Corporate Finance [email protected] 0 212 276 27 27

Ahmet Can YAKAR Project Finance [email protected] 0 212 276 27 27

24 icbc.com.tr