PUBLICATION OF THE BANKS ASSOCIATION OF NO: 58

BANKS IN TURKEY 2006

MAY 2007 ISBN 978-975-8564-40-8 ISSN 1300 - 6460

Copyright © The Banks Association of Turkey, 2007

Publication Name : Banks in Turkey Publication Type : Local Periodical Publication Period : Annual Owner of the Publication : The Banks Association of Turkey Managing Director : Dr. Ekrem Keskin Address : Nispetiye Cad. Akmerkez, B3 Blok Kat 13, Etiler, 34340 østanbul Phone : 90-212-282 09 73 Fax : 90-212-282 09 46 E-mail : [email protected]

Printed in : Graphis Matbaa San.ve Tic. Ltd. ùti. Address : YüzyÕl Mah. MatbaacÕlar Sitesi, 1.Cad. No 139, Ba÷cÕlar, 34560 østanbul Phone : 90-212-629 06 07(PBX) Fax : 90-212-629 03 85 E-mail : [email protected]

All rights reserved. No part of this report may be reproduced or transmitted, in any form or by any means, electronic, photocopying or otherwise, without the prior written permission of the Banks Association of Turkey.

Whilst every effort has been made to ensure that the information contained in this book is correct, the Banks Association of Turkey can not accept any responsibility for any errors or omissions or for any consequences resulting therefrom.

This book is prepared from the year-end audited and non-consolidated "The Common Data Set" of deposit banks and development and investment banks, that are prepared according to related Communique - Financial Statements and Related Explanation and Footnotes of the banks that is disclosed to the Public- Contents

Page No.

Preface………………………………..….…………………………………………… v

Main Economic Indicators………...………………………………….…………… vi

Turkish Economy and Banking System in 2006…………………………...…… I-1

General Outlook….……………………………….……………………………… I-1 Developments in the Turkish Economy in 2006………..……….…………..… I-13 Banking System in 2006 …………………………………………...…………... I-34

The Banks Association of Turkey and Banks Operating in Turkey…………………………………..…………………… II-1

Banking System in Turkey……………………………..………………..………… II-9

Deposit Banks..…………………………………...……...... …………………... II-14

State-owned Banks..……...……………...... ……....……………… II-18 Privately-owned Banks...... …….....…...……...... ……...... ………… II-22 Banks Under the Deposit Insurance Fund...... ………….....…………... II-26 Foreign Banks……………………………………...………..…...... ……..... II-30

Development and Investment Banks………………….………………………… II-34

i Page No.

Balance Sheets of the Banks………..……………………………….…………… II-39

Deposit Banks...... …………………….....…...... …...…… II-41

State-owned Banks…………………...... ……..………………...... II-43 Türkiye Cumhuriyeti Ziraat BankasÕ A.ù.……………………………… II-44 Türkiye Halk BankasÕ A.ù……………………………………………..… II-48 Türkiye VakÕflar BankasÕ T.A.O………………………………………… II-52

Privately-owned Banks……………………..………………………………… II-57 A.ù…………………………………………..…………………… II-58 T.A.ù……………………………………………………………… II-62 A.ù…………………………………...……..…………… II-66 A.ù………………………………………...…...…...……… II-70 Oyak Bank A.ù.…………………………………………………………… II-74 ùekerbank T.A.ù.………………………………………………………… II-78 Tekfenbank A.ù …………………………………………………………… II-82 Tekstil BankasÕ A.ù.……………………………………………………… II-86 A.ù.………………………………….……..……………… II-90 Turkland Bank A.ù.…………………………...………………………… II-94 Türk Ekonomi BankasÕ A.ù.……………………………………………… II-98 Türkiye Garanti BankasÕ A.ù.…………………………………………… II-102 Türkiye øú BankasÕ A.ù.…………………………………………………… II-106 YapÕ ve Kredi BankasÕ A.ù……………………………………………… II-110

Banks Under the Deposit Insurance Fund...... …….....………...... II-115 Birleúik Fon BankasÕ A.ù………………………………………………… II-116

Foreign Banks………………………………………………………..….. II-121 ABN AMRO Bank N.V.……………………………………..…………… II-122 Arap Türk BankasÕ A.ù……………………………………………….… II-126 Banca di Roma S.P.A……………………………………….…………… II-130 Bank Mellat……………………………………..……………………….… II-134 Citibank A.ù.. …………………………………...………………………… II-138 Denizbank A.ù……………………………………...…………………… II-142 A.ù.………………………………………...…………… II-146 Finans Bank A.ù………………………………………………………… II-150 Fortis Bank A.ù.………………………………………...………………… II-154 Habib Bank Limited……………………………………….……………… II-158 HSBC Bank A.ù.……………………………………………..…………… II-162 JPMorgan Chase Bank N.A.…….………………………...…………… II-166 Millenium Bank A.ù..…………………………………………..………… II-170 Sociéte Générale (SA)……………………………………...…………… II-174 WestLB AG……………………..………………………………...……… II-178

ii Page No.

Developmet and Investment Banks…….……………………………………… II-183 BankPozitif Kredi ve KalkÕnma BankasÕ A.ù.………………………… II-184 Calyon Bank Türk A.ù.………………...………………………………… II-188 ÇalÕk YatÕrÕm BankasÕ A.ù.………………..…………………..………… II-192 Diler YatÕrÕm BankasÕ A.ù………………………………………….…… II-196 GSD YatÕrÕm BankasÕ A.ù……………………………………...………… II-200 øller BankasÕ…………………………………………….…….…………… II-204 øMKB Takas ve Saklama BankasÕ A.ù.…………………..…………… II-208 Merrill Lynch YatÕrÕm Bank A.ù...... II-212 Nurol YatÕrÕm BankasÕ A.ù……………………………………………… II-216 Taib YatÕrÕmbank A.ù.………………………………………...………… II-220 Türk Eximbank…………………………………………………...……… II-224 Türkiye KalkÕnma BankasÕ A.ù.…………………………………..……… II-228 Türkiye SÕnai KalkÕnma BankasÕ A.ù.…………………..……………… II-232

Appendix………...... …...... II-237

Table 1 Turkish Banks - Ranked by Total Assets, as of December 31, 2006 II-238 Table 2 Number of Branches and Employees by the Banks and Groups, as of December 31, 2006……………………………………… II-240 Table 3 Presentation of Assets and Liabilities According to their Outstanding Maturities, as of December 31,2006…………………..… II-242 Table 4 Interest Rate Sensitivity of Assets, Liabilities and Off Balance-Sheet Items based on repricing dates, as of December 31, 2006………...… II-243 Table 5 Information on Currency Risk, as of December 31,2006…………… II-244 Table 6 Saving Deposits, as of December 31, 2006…………………………… II-245 Table 7 Number of Deposit Accounts, as of December 31, 2006…………… II-246 Table 8 Maturity Sructure of Deposits, as of December 31, 2006…………... II-248 Table 9 Classification of Deposits, as of December 31, 2006……………...… II-250 Table 10 Deposits by Geographical Regions and Provinces, as of December 31, 2006………………………………………………… II-252 Table 11 Loans by Geographical Regions and Provinces, as of December 31, 2006……………………………………………..… II-255 Table 12 Classification of Cash Loans, as of December 31, 2006……………. II-258 Table 13 Concentrations for Cash Loans, as of December 31, 2006………… II-260 Table 14 Sectoral Risk Concentrations of Non-cash Loans, as of December 31, 2006………………………….…………………… II-261 Table 15 Bank Employees by Sex and Education, as of December 31, 2006… II-262 Table 16 Share in Group and Share in Sector, as of December 31, 2006 II-264 Table 17 Equity Participations and Affiliated Companies of Turkish Banks Abroad, as of December 31, 2006…………………… II-265 Table 18 Branches and Representative Offices of Turkish Banks Abroad, as of December 31, 2006………………………………………………… II-269 Table 19 Representative Offices in Turkey, as of December 31, 2006………. II-272

Glossary…...... ………………...... II-273

iii

Preface

'Banks in Turkey 2006' provides general information about deposit banks and development and investment banks operating in Turkey as well as their audited financial tables which are prepared according to the related Communique-Financial statements and related explanation and footnotes of the banks that is disclosed to the Public-. This book also offers an overall evaluation of the performance of the Turkish economy and the banking system in 2006.

In addition, more details and tables that are prepared according to the related Communique, in terms of banks or groups, can be found in the web site of the Association (www.tbb.org.tr).

It is hoped that this publication will be useful for those who are interested.

The Banks Association of Turkey

v The Turkish Economy Main Economic Indicators

Unit 2003 2004 2005 2006 2007* Growth

GNP % 5.9 9.9 7.6 6.0 7.0 Agriculture -2.5 2.0 5.6 2.9 ... Industry 7.8 9.4 6.5 7.4 ... Services 6.7 11.7 8.6 6.1 ...

Sectoral breakdown (at current prices) % Agriculture 13 12 11 11 ... Industry 30 30 29 29 ... Services 57 58 60 60 ...

GNP USD billion 239 300 361 400 423 GNP TRY million 356,681 428,932 486,401 575,784 622,600 Population Million 70.4 71.3 72.3 73 73.9 Income per capita In USD terms 3,383 4,172 5,008 5,482 5,732

Source-use As % of GNP

Fixed-capital outlays 16 20 25 25 25 Public 55555 Private 11 15 20 20 20

Total savings % 1921181618 Public -5 -1 4 5 4 Private 25 22 14 11 14 Savings gap -4 -5 -7 -8 -8 Public -10 -7 -1 0 -1 Private 6 1 -6 -9 -7 Total consumption 81 80 82 84 83 Public 12 12 12 12 13 Private 68 68 70 71 70 GNP deflator % 2395127

Unemployment

Overall % 10 10 10 10 ... Urban 14 14 13 12 ... Rural 7777...

Inflation % (Twelve month chg) Producer** 14 14 3 12 ... Consumer 18 9 8 10 4

Public sector balance, as % of GNP %

PSBR (excluding privatization) 9.4 5.1 0.4 -0.9 1.0 PSBR (including privatization) 9.3 4.7 -0.4 -3.1 0.2 PSBR (excluding. interest. payments) -7.6 -8.4 -9.3 -9.4 -7.7 Budget deficit 11.2 7.0 1.7 0.5 2.7 Budget deficit (excluding interest payments) 10.0 5.3 -0.2 -2.7 0.6 SEEs -0.7 -0.6 -0.2 -0.4 -0.5 Public administrations 0.4 0.0 0.0 0.0 0.0 Funds -0.2 -0.5 -0.6 -1.8 -0.7 Other -1.3 -0.8 -0.5 0.8 -0.5

Central Government budget*** TRY million

Revenues 100,283 109,887 146,710 171,309 188,159 Expenditures 140,054 140,200 156,316 175,304 204,989 Interest expenditures 65,450 56,488 45,680 45,945 52,946 Budget deficit -39,771 -30,313 -9,606 -3,995 -16,830 Primary balance 19,322 26,175 36,074 41,950 36,116

Financing 42,290 31,624 13,225 5,541 16,740

External borrowing 2,685 3,505 -2,627 -1,722 ... G-bonds 54,856 25,853 33,773 12,685 ... Short-term financing -11,973 4,859 -12,455 -8,224 ... T-bills -11,973 4,859 -12,455 -8,224 ... CB advances 0000... * Programme target ** Wholesale price index until 2004. *** Consolidated budget until 2004.

vi Unit 2003 2004 2005 2006 2007* Selected ratios %

Revenue/GNP 28.1 25.6 30.1 29.7 30.2 Expenditure/GNP 39.2 32.7 32.1 30.4 32.9 Personnel expenditure/GNP 8.5 6.7 6.5 6.5 7.0 Interest expenditure/GNP 18.3 13.2 9.4 8.0 8.5 Investment/GNP 2.0 1.9 2.0 2.0 2.5

Personnel expenditure/total expenditure 21.6 21.9 22.0 22.7 21.3 Interest expenditure/total expenditure 41.8 41.1 31.6 29.4 25.8 Investment/total expenditure 5.1 4.7 6.7 6.8 7.6

Outstanding domestic debt TRY million

G-bonds 169,745 194,211 226,964 241,877 ... T-bills 24,642 30,272 17,818 9,594 ... Total Government securities 194,387 224,483 244,782 251,471 ... CB advances 0000... Devaluation account 0000... Total 194,387 224,483 244,782 251,471 ...

Outstanding Domestic G. securities/GNP % 54 52 50 44 ... Outstanding debt/GNP 79 75 68 60 ...

Interest rates % (Annual simple average) G-bonds 43 19 14 19 ... T-bills (3-month) 44 23 14 22 ... G-securities (maturity) 323 368 690 850 ...

Exchange rates

USD (Year-end) 1.3933 1.3363 1.3418 1.4056 ... (Twelve month chg) % -15 -4 0 5 ... Euro (year-end) 1.7575 1.8233 1.5875 1.8515 ... (Twelve month chg) % 2 4 -13 17 ...

CB Balance Sheet TRY million

Total balance sheet 76,473 74,658 90,700 104,352 ... As % of GNP % 21 17 19 17 ... Net fx assets 17,262 23,048 49,480 67,136 ... Net domestic assets 28,753 21,071 17,732 12,888 ... Lending to Government 28,747 25,272 21,439 18,775 ... Reserve money 15,010 20,328 32,696 41,398 ... CB money 24,134 24,743 38,547 41,916 ... Fx position USD million 394 2,748 15,513 20,702 ... Fx reserves USD million 33,639 36,006 50,518 60,814 ...

Monetary aggregates

M1 TRY million 21,564 29,469 46,963 47,491 ... M2 80,923 109,344 163,467 185,145 ... M2Y 149,855 185,418 243,277 286,544 ... Repos (R) 3,067 1,528 1,486 2,202 ... Investment Funds (F) 12,911 16,532 21,584 9,590 ... G-securities held by non banks (D) TRY million 53,327 67,034 65,252 66,063 ... Loans 67,210 100,101 153,059 210,420 ...

M2RF 96,901 127,404 186,537 196,937 ... M2RFY 165,833 203,478 266,347 298,336 ... M2RFYD* 219,160 270,512 331,599 364,399 ... *M2RFYD: monetary assets+repos+investment funds+D

M2RF/GNP % 27 30 38 34 ... M2RFY/GNP % 46 47 55 52 ... Loans/GNP % 19 23 31 37 ... * Programme target

vii Unit 2003 2004 2005 2006 2007* Financial assets TRY million

Monetary assets 165,833 201,949 231,072 288745 ... TRY 96,901 125,875 154,632 187346 ... FX 68,932 76,074 76,440 101399 ... Securities 287,092 353,769 466,032 493246 ... Shares 96,073 129,287 218,318 228283 ... Bonds and Bills 191,019 224,482 247,714 255373 ... Government 191,019 224,482 247,714 255240 ... Private 000133... Investment Funds 12,912 16,531 21,584 9590 ... Total 465,837 572,249 718,688 781991 ...

Foreign trade USD billion

Exports 45.6 62.8 73.0 85.0 95.0 Imports 67.2 97.2 116.0 137.0 150.3 Trade deficit 21.6 34.4 43.0 52.0 -57.2

Foreign trade as of GNP %

Exports 19.1 20.9 20.2 20.7 22.5 Imports 28.1 32.4 32.1 34.0 35.5 Trade deficit 9.0 11.5 11.9 13.0 13.0

Balance of payments USD billion

Trade balance -14.0 -23.9 -33.5 -40.1 -55.0 Invisible balance 6.0 8.3 10.9 8.4 24.6 Current account balance -8.0 -15.6 -22.6 -31.7 -30.4

Current account balance/GNP % -3.3 -4.8 -6.5 -7.9 -7.9

Capital movements USD billion 7.1 17.7 44.1 45.3 30.4 Foreign direct investment 1.2 2.0 8.7 19.2 13.2 Portfolio investment 2.6 8.0 13.4 7.4 5.6 Net errors and ommissions 5.0 2.2 2.1 3.0 0.0 Change in reserves 4.0 -0.8 17.8 -6.1 -5.3

International fx reserves USD billion

CB reserves 33.6 36.0 50.5 60.8 ... Commercial banks 14.9 21.1 22.6 38 ... Total 48.5 57.1 73.1 98.8 ...

Outstanding external debt USD million Total 144,260 160,789 168,808 206471 ... Long-term capital 121,247 128,909 131,705 164487 ... Government 69,504 73,831 68,247 69585 ... Central Bank 24,364 21,401 15,418 15669 ... Private sector 30,238 36,964 50,804 81796 ... Non-financials 25,086 28,546 34,914 53035 ... Financials 5,152 8,418 15,890 28761 ... Short term 23,013 31,880 37,130 41984 ... Government 0000... Central Bank 2,860 3,287 2,764 2563 ... Private sector 20,153 28,593 34,339 39421 ... Non-financials 10,461 14,064 16,599 19591 ... Financials 9,692 14,529 17,740 19830 ...

Istanbul Stock Exchange

Number of companies traded 265 275 282 291 ... ISE index In USD terms 778 1,075 1,687 1,621 ... Daily trading volume USD million 407 593 793 886 ... Total trading volume USD million 100,165 147,755 197,386 222,399 ... Market capitilization USD billion 69,003 98,073 159,274 162,525 ... Market P/E 15 14 17 22 ... * Programme target

viii Turkish Economy and Banking System in 2006

I-1

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High and stable economic growth in the last five years. (%) Per capital income continued to increase. (USD) 15 70 6,000

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-15 0 2,000 GNP (%) Deflator (%) 9900 01 02 03 04 05 06

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10.5 140 10

9.5 130

9 120 8.5 110 8

7.5 100 7 90 6.5

6 80 9900 01 02 03 04 05 06 9900 01 02 03 04 05 06 Public Private

Public sector balance gave surplus,domestic debt stock declined. The declining trend in inflation ended in 2006. (%) (As percentage of GNP) 35 70

30 60

50 25 40 20 30 15 20 10 10

5 0

0 -10 02 03 04 05 06 9900 01 02 03 04 05 06 PPI CPI PSBR Domestic debt stock

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Capital Adequacy, Shareholers’ Equity and Free Shareholders’ Equity USD million Percentage 45 35

40 30 35 25 30

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35

30 65

25 60 20

15 55 10

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100 40

80 30

60 20

40 10

20 0

0 -10 0304 05 06/2 06 0304 05 06/2 06 Assets Liabilities Total TRY FX Total

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19

35 18

17

30 16

15

25 14

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Number of Employees and Branches (1999-2006) 8,000 180,000

170,000 7,500 160,000 7,000 150,000

6,500 140,000

130,000 6,000 120,000 5,500 110,000

5,000 100,000 99 00 01 02 0304 05 06 Branch Employee (right-hand scale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Total Assets and Total Assets / GNP (2002-2006) USD billion Percentage 400 100

95 350 90 300 85

250 80

75 200 70 150 65

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Deposits / Total Assets and Deposits / GNP (Percentage) 70

65

60

55

50

45

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USD billion +0-1 1-2 2-5 5-10 10-20 20-40 40+ 99 06 99 06 99 06 99 06 99 06 99 06 06 Number Deposit b. 37 15 10 3 7 5 6 5 4 1 1 4 3 State 111121 Private 1566351523 22 Foreign 17 8 1 1 1 3 1 SDIF 513 1 Dev. inv. b. 17 10 1 1 3 Total 5425113856541143

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Deposit Banks - Growth in Balance Sheet (Percentage) 70

60

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40 Average (27.3) 30

20

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 I-46 %DQNVLQ7XUNH\

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 I-48