Türk Ekonomi Bankası A.Ş.
2011 1Q Results
TEB Financial Group of Companies and
the Merged Bank
A Major Player of the Turkish Financial Services Market
TEB Factoring
 3rd largest factoring
company in Turkey with
9% market share as of
2011 1Q
TEB Investment
 8th largest brokerage &
investment house of Turkey
with 3,21% market share as
of 2011 1Q
TEB Cetelem
 3rd largest consumer
finance company in
Turkey
Türk Ekonomi Bankası A.Ş.
TEB Leasing
 8th largest leasing
company in Turkey with
4,5% market share as of
2011 1Q
TEB N.V.
 “Turkish specialist” in the
EU market, total asset size
is EUR 692 mio as of 2011
1Q
TEB (Bank)
Full range of banking services
TEB Arval
 Operative since October
2007
A wide spectrum of
financial services
TEB Asset Management
 3,81% market share with
EUR 608 mio of AUM as of
2011 1Q
TEB Kosova
 Operative since January
2008, with 17 branches
3
Subsidiaries of TEB
Partnership with BNPP since February 2005
50%
BNP Paribas
Group
50%
Çolakoğlu Group
TEB Holding
55 %
TEB Cetelem
TEB ARVAL
20%
50%
Türk Ekonomi Bankası A.Ş.
TEB SHA
(Kosovo)
TEB
(Bank)
100%
100%
TEB NV
(TheNetherlands)
10%
TEB Leasing
100%
TEB Factoring
100%
TEB Asset
Management
100%
TEB
Investment
10.51% free float
(Istanbul Stock
Exchange)
+
Fortis
Investment
4
Ownership Structure of TEB
*Société Fédérale de Participations et d’Investissments
SFPI*
25%
10.79%
Çolakoğlu Group
BNP Paribas
Fortis Bank SA/NV
75%
50%
100%
100%
BNPP-Fortis
Investment
Holding A.S.
BNPP
Investment
Holding A.S.
50%
TEB Holding A.Ş.
55%
20.35%
TEB A.S.
14.08%
Türk Ekonomi Bankası A.Ş.
10.51%
Free Float
5
The Merged Bank
Kırklareli
Bartın
Edirne
Tekirdağ
Zonguldak
Karabük
Düzce
İstanbul
İzmit
Sakarya
Yalova
Artvin
Ordu
Eskişehir
Ankara
Kırıkkale
Kütahya
İzmir
Aydın
Aydın
Muğla
Çorum
Kars
Bayburt
Kayseri
Malatya
Isparta
Muş
Van
Van
Bitlis
Diyarbakır
K.Maraş
Niğde
Adıyaman
Adana
Ş.Urfa
G.Antep
Antalya
Kilis
Mersin
Hatay
Cities
where iller
the combined bank has branches
Şube
bulunan
Hakkari
Şırnak
Mardin
Osmaniye
Karaman
Kıbrıs
Siirt
Batman
Burdur



Türk Ekonomi Bankası A.Ş.
Bingöl
Elazığ
Aksaray
Konya
Uş
Denizli
ak
Erzincan
Tunceli
Nevşehir
Iğdır
Erzurum
Ağrı
Sivas
Yozgat
Kırşehir
Afyon
Uşak
Rize
G.Hane
Bilecik
Balıkesir
Manisa
Trabzon
Giresun
Amasya
Tokat
Bursa
Ardahan
Samsun
Çankırı
Bolu
Çanakkale
Sinop
Kastamonu
As of 31/03/2011
Number of Clients: 2,9 million
Number of Branches: 603
Total Staff: 9945
6
Financial Highlights
Consolidated Balance Sheet
TRY Million
Reviewed
31.03.2011
Share
Audited
31.12.2010
Change
Assets
Share
Audited
31.12.2010
Change
Liabilities
Cash & banks
9%
3,167
3,050
3.8%
M.sec + repos
18%
5,910
3,863
53.0%
Repos
Loans + Trade rec.
68%
22,600
13,482
67.6%
Funds Borrowed
Other Assets
3%
947
647
46.4%
Other Liab.
Non- IE Assets
2%
729
132
452.3%
100%
33,353
21,174
57.5%
Total Assets
Reviewed
31.03.2011
Deposits
55%
18,366
13,164
39.5%
2%
725
87
733.3%
22%
7,286
4,402
65.5%
6%
2,144
1,095
95.8%
86%
28,521
18,748
52.1%
1%
488
473
3.2%
Capital & Res.
13%
4,268
1,681
153.9%
Income
0.2%
76
272
n.m.
Total Sh. Equity
13%
4,344
1,953
122.4%
100%
33,353
21,174
57.5%
Total Liabilities
Subordinated Loans
Sh. Equity
Total Liab + Equity
Türk Ekonomi Bankası A.Ş.
Source: TEB, BRSA Consolidated Financials
8
Consolidated Income Statement
TRY Million
Reviewed
31.03.2011
Reviewed
31.03.2010
Change
Net Interest Income
Marketable Securities Revaluation Differences
Adjusted Net Interest Income
298.2
-35.4
262.8
214.5
-14.1
200.4
FX Gains / (Losses)
Derivatives Trading
Securities Trading Income
Net Fees & Commissions Income
Other Operating Income
Net Banking Income
-27.1
41.1
34.8
83.9
20.7
416.3
53.9
-63.8
13.7
73.5
13.2
290.8
Loan Loss Provisions
Net Operating Income
-20.5
395.8
-42.3
248.5
-52%
0.0
-296.7
-23.3
7.6
-192.3
-13.9
nm
54%
75.9
49.8
52%
Income from discontinued operations
Operating Expenses
Provision for Taxes on Income
Net Income / (Loss)
Türk Ekonomi Bankası A.Ş.
Source: TEB, BRSA Consolidated Financials
39%
151%
31%
nm
nm
155%
14%
56%
43%
59%
67%
9
Consolidated Income Statement
TRY Million
Reviewed
2011 1Q
Audited
2010 4Q
Change
Net Interest Income
Marketable Securities Revaluation Differences
Adjusted Net Interest Income
298.2
-35.4
262.8
203.9
5.4
209.3
46%
FX Gains / (Losses)
Derivatives Trading
Securities Trading Income
Net Fees & Commissions Income
Other Operating Income
Net Banking Income
-27.1
41.1
34.8
83.9
20.7
416.3
23.9
-35.8
3.4
246.5
8.9
456.0
nm
Loan Loss Provisions
Net Operating Income
-20.5
395.8
-49.6
406.4
-59%
-296.7
-23.3
-238.2
-38.0
25%
-39%
75.9
130.3
-42%
Operating Expenses
Provision for Taxes on Income
Net Income / (Loss)
Türk Ekonomi Bankası A.Ş.
Source: TEB, BRSA Consolidated Financials
nm
26%
nm
929%
-66%
133%
-8.7%
-3%
10
Balance Sheet Composition
TEB Assets Growth (Q o Q)
TEB Assets Composition
Türk Ekonomi Bankası A.Ş.
TEB+FORTIS Assets Growth (Q o Q)
TEB Liability Composition
Source: TEB, BRSA Consolidated Financials
11
Loan Composition and Asset Quality
Loan Composition (Q o Q)
18,929
19,983
18,951
20,906
17,445
TL Loans
80%
30.09.10
20%
22%
23%
30.06.10
Total Loans
TEB+FORTIS
21%
24%
31.03.10
11,753
10,794
10,473
9,675
78%
79%
77%
76%
FX Loans
31.12.2010
31.03.11
Non Performing Loans
923,120
NPL
777,120
767,326
753,971
Coverage
695,975
Non Performing Loans
TEB+FORTIS
402,538
348,698
334,714
Türk Ekonomi Bankası A.Ş.
31.12.2010
69%
3.3%
30.09.10
66%
3.2%
30.06.10
3.0%
54%
3.2%
31.03.10
60%
57%
4.1%
360,075
31.03.11
Source: TEB, BRSA Bank-Only Financials
12
Loans by Business Lines
Mortgage
Vehicle
Consumer
Credit Card
2,808
RETAIL (*)
27.0%
PRIVATE
0.2%
1,858
SME
42.4%
994
CORPORATE
30.4%
751
1,091
915
440
458
179
155
31.03.10
30.06.10
1,103
997
466
193
30.09.10
1,135
1,048
1,132
489
443
240
31.12.10
31.03.11
New Segmentation Criteria
Corporate > 30 mio TL
Breakdown of Retail Loans
SME < 30 mio TL
0,5 mio TL private
(*) credit cards are included
Türk Ekonomi Bankası A.Ş.
Source: TEB, BRSA Bank-Only Financials
13
Loans by industry
Misc. Services
6%
Chemicals
5%
Machinery
2%
Transportation Veh.
3%
Mining
2%
Agriculture
3%
Elect. & optical appliances
2%
Tourism
6%
Other
16%
Wholesale/Retail
5%
Food, Beverage &
Tobacco
9%
Construction
8%
Consumer
18%
Metal
7%
Textile
8%
Loan Portfolio by Industry 31.03.2011
Türk Ekonomi Bankası A.Ş.
Source: TEB, BRSA Bank-Only Financials
14
Breakdown of Deposits
PRIVATE
11.2%
RETAIL
38.5%
CORPORATE
27.4%
SME
22.8%
Time/Demand Deposit Composition
New Segmentation Criteria
Corporate > 30 mio TL
SME < 30 mio TL
> 0,5 mio TL private
Türk Ekonomi Bankası A.Ş.
Source: TEB, BRSA Bank-Only Financials
15
SELECTED RATIOS-1
Loan/Deposits
Liquid Assets/Deposits
Türk Ekonomi Bankası A.Ş.
Source: TEB, BRSA Bank-Only Financials
16
SELECTED RATIOS-2
Cost / Income Ratio
Cost/Income Ratio (restructuring costs not included)
Restructuring costs: 300 mio TL of which approx. 57 mio was booked in 2010
21.4 mioTL booked in 2011 1Q
Synergies: 200 mio TL for the year 2013 (recurring)
Subject to potential further revisions in the upcoming stages, the preliminary studies forecasts total income restructuring costs of
TL 300 million for the years 2010 to 2012. Income synergies forecasted for the year 2013 on the other hand is TL 200 million.
While the synergies are expected to continue following 2013, restructring costs will end in 2012.
Türk Ekonomi Bankası A.Ş.
Source: TEB, BRSA Bank-Only Financials
17
SELECTED RATIOS-3
30.06.10
30.09.10
31.12.10
15.3%
14.4%
15.7%
16.3%
31.03.10
15.4%
Capital Adequacy Ratio
Cost of Risk
31.03.11
NIM(*)
(*)
Türk Ekonomi Bankası A.Ş.
(Net interest income+ Foreign
Exchange gain/loss +Derivatives
Gains) / Average Interest
Earning Assets
Source: TEB, BRSA Bank-Only Financials
18
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 Ekonomi Bankası A.Ş.
19