0 Table of Contents Turkish Economy ICBC Turkey and ICBC in short - - PowerPoint PPT Presentation

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Table of Contents

 Turkish Economy  ‘ICBC Turkey and ICBC’ in short  Financial Highlights  Summary Balance Sheet and Income Statement  Financial Performance  Credit Ratings

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Turkish Economy

 Turkish Economy Overview & Country Rating  Turkish Banking Sector

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Turkish Economy Overview & Country Rating

2011 2012 2013 2014 2015 Q3 GDP US$ 776 bio US$ 791 bio US$ 823 bio US$ 799 bio US$ 546 bio GDP Growth 8.8 2.1 4.2 2.9 3.4 Population 74,724,269 75,627,384 76,667,864 77,695,904 78,151,750* GDP Per Capita 10,428 10,459 10,822 10,404 10,404 ** Current Account Deficit US$ 75.0 bio US$ 48.5 bio US$ 64.6 bio US$ 46.4 bio US$ 133 bio Inflation Rate 10.4 6.2 7.4 8.2 7.9 External Debt US$ 182.6 bio US$ 189.2 bio US$ 229.3 bio US$ 243.7 bio USD $ 406 bio Unemployment Rate 9.8% 9.2% 9.7% 10.1% 10.5% International Reserves US$ 88.3 bio US$ 119.2 US$ 131.0 bio US$ 127.3 bio US$ 99.5 bio Import US$ 240.8 bio US$ 236.5 bio US$ 251.6 bio US$ $242.2 bio US$ 150.7 bio Export US$ 134.9 bio US$ 152.5 bio US$ 151.8 bio US$ 157.6 bio US$ 113.7 bio

• Data received from TURKSTAT, CBRT

UNDERSECRETARIAT OF TREASURY

• *Exp. As of 3rd Q 2015
• ** As of 2014

Country Rating Date Long Term Issuer Default Rating Outlook S&P February 7, 2014 BB+ Negative Moody’s April 11, 2014 Baa3 Negative Fitch March 20, 2015 BBB- Stable

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Turkish Banking Sector

US$ mio 2011 2012 2013 2014 March 2015 June 2015 September 2015 Total Assets 648,118 773,375 814,380 859,870 819,673 833,005 794,868 Loans 363,524 448,429 492,398 535,523 509,976 524,252 492,070 Loans / Assets 56.1 58.0 60.5 62.3 62.2 62.9 61.9 Non-Performing Loans 10,093 13,209 13,910 15,698 14,874 15,544 14,840 NPL Ratio 2.70 2.86 2.75 2.85 2.83 2.88 2.93 Deposits 370,346 435,662 444,550 454,336 430,294 438,025 421,549 Cash Loans / Deposits 100.99 106.06 114.08 121.61 122.36 123.62 120.64 Debts to Banks 89,099 97,890 119,514 126,590 122,836 126,849 125,191 Total Liabilities 571,229 670,726 723,309 760,006 729,125 741,804 712,962 SHE 76,889 102,649 91,071 99,864 90,549 91,201 81,906 Contingencies 116,255 136,060 156,956 165,620 157,403 161,935 157,955 Net Profit/Loss 10,568 13,275 11,600 10,619 2.585 5.112 8.168 CAR ratio 16.55 17.86 15.28 16.28 15.50 15.37 14.64 ROAA 1.74 1.83 1.60 1.33 1.29 (*) 1.28 (**) 1.14(***) ROAE 15.48 15.64 14.16 12.21 11.56(*) 11.87 (**) 10.89(***)

Data received from BRSA (*) Annualized for Q1 2015 (**) Annualized for Q2 2015 (***)Annualized for Q3 2015

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‘ICBC Turkey and ICBC’ in short

 History and Ownership  ‘ICBC’ in short  ICBC Turkey Overview  Branch Network  ICBC Turkey’s paid-in capital base  Business lines

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2015: Tekstil Bankasi A.S. has changed its legal name to ICBC Turkey Bank

A.S. as of 19 November 2015.

ICBC 92.817% Free Float 7.183%

Shareholder Structure

History and Ownership

2014: SPA signed between GSD Holding and the ICBC on 29th of April 2002: GSD Holding (formerly GSD Foreign Trade Co.) became the major

shareholder by increasing its stake to 75%

1986: Founded by Akın Tekstil, a major textile manufacturer 2015: As of May 22nd, Tekstilbank’s 75.5% GSD shares are acquired by ICBC 1992: GSD Foreign Trade Co. acquired 30% stake 2015: Following the tender offer by ICBC for the remaining shares, 92.817%

• f Tekstilbank’s shares are held by ICBC as of August 21st

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ICBC Shareholder Structure & Ratings

China Investment Corporation Ministry of Finance of the PRC

35.33%

Central Huijin Investment Ltd. HKSCC Nominees Limited

5.11% 24.47% 100% 100% 35.09%

Other Shareholders

Bank Credit Ratings

Ratings Agency Long Term Short Term Outlook Moodys A1 P1 Stable S&P A A1 Stable

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296

288 251 244 203 189 185 173 164

ICBC WF CCB JPM BOC ABC HSBC BOA Citi

Largest Banks by Market Capitalization Reported Total Market Capitalization (in USD bn)

ICBC is the world’s largest bank

The World’s Largest Bank by Assets Reported Total Assets (in USD bn) Strong Solvency: One of Best-Capitalized Banks (Tier I Capital in USD bn)

Source: Bloomberg, total assets as of December 31, 2014 Source: Bloomberg, total market cap, as of May 30, 2015 Source: Bloomberg, December 2014

Forbes

The 1st place among the Global 2,000 (Overall ranking in terms of four aspects: sales, profit, assets and market value)

The Banker

The 1st place among Top 1,000 World Banks (Ranking in terms of tier-1 capital of the Bank)

Fortune

The 29th place among the Global 500 Ranked first among all commercial banks (Ranking in terms of revenue)

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Extensive Global Platform

China South Korea Japan HK

Macau

Vietnam Lao PDR Cambodia Bangkok Malaysia Singapore Indonesia Sydney Myanmar Mumbai Moscow Almaty Pakistan Dubai Saudi Arabia Abu Dhabi Kuwait Doha Canada New York Brazil Argentina Peru Warsaw Milan Madrid Paris London Amsterdam Frankfurt Luxemburg Brussels South Africa New Zealand USA

ICBC’s Global Footprint

• Domestic and overseas institutions: 17,510
• Overseas presence: 42 countries and regions

with 399 countries

• Established correspodent bank relationship

with 1,604 overseas bank in 147 countries and regions

• Self-service banking outlets: 27,708
• ATM #: 96,704
• Corporate clients: 5.09 million
• Retail clients: 465 million
• Employees: 460,619
• 6 RMB Clearing Centres: Singapore, Bangkok,

Luxembourg, Doha, Canada, Argentina

Turkey

10 * Among private deposit banks as at 30 September 2015 ** As at 30 September 2015

ICBC Turkey Overview

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1

Trabzon

Number of branches 1

Samsun

22

Istanbul

1

Bursa

1

Balıkesir

3

İzmir

1

Uşak

1

Aydın

1

Muğla

1

Denizli

3

Ankara

1

Eskişehir

1

Kayseri

1

Konya

2

Hatay

1

Adana

1

Mersin

1

Antalya

Branch Network

Istanbul branches : 21 Anatolian branches : 22 Free-Zone branch : 1 Domestic Network : 44



Branches are predominantly located in the western regions, which account for the majority of Türkiye's GDP generation.



Financial Services branch in Berlin, Germany, established in 1995, that handles mainly remittances business.

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ICBC Turkey’s paid-in capital base

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Business Lines

International Business Treasury Retail Banking Corporate & Commercial Banking

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Financial Highlights

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Financial Highlights of 2015 Q3

YoY Growth in Balance Sheet (%)

 Assets

65.4%

 Cash Loans

33.7%

 Deposits

6.5%

 SHE

• 9.3%

Selected Ratios (%)

 Loans / Assets

60.5 %

 Deposits / Assets

39.7%

 Funds Borrowed / Assets

41.2%

 SHE / Assets

9.0%

 Corporate&Commercial Loans

88.2%

 Consumer Loans

11.0%

 Total CAR

12.7%

 Free Equity

85.9%

 IEA

83.3%

 NPL

3.6%

 Reserve Coverage

103.2%

 NIM

3.2%

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Summary Balance Sheet and Income Statement

 Balance Sheet  Income Statement

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TL mio 2014 Q3 FY 2014 2015 Q3 YoY% Cash and Banks 439 518 1,104 151.5% Total Securities 352 219 1,189 237.8% Total Cash Loans 2,841 2,765 3,798 33.7% Fixed Assets & Subsidiaries 33 40 38 15.2% Others 131 122 151 15.3% Total Assets 3,796 3,664 6,280 65.4% Deposits* 2,343 2,342 2,496 6.5% Interbank & Money Market* 277 229 371 33.9% Borrowings 403 348 2,585 541.4% Others 151 125 264 74.8% SHE 622 620 564

• 9.3%

Total Liabilities & SHE 3,796 3,664 6,280 65.4%

* Bank deposits are included in Interbank & Money Market rather than Deposits

Balance Sheet

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TL mio 2014 Q3 FY 2014 2015 Q3 YoY % Interest Income 262.8 343.6 238.1

• 9%

Loans 224.1 298.3 212.8

• 5%

Securities 33.3 38.9 19.7

• 41%

Others 5.4 6.3 5.6 4% Interest Expense (-) 157.8 206.1 143.9

• 9%

Deposits 102.5 134.3 106.7 4% Other Borrowings 55.3 71.8 37.2

• 33%

Net Interest Income 105.0 137.4 94.2

• 10%

Net FX Gain (Loss)* 3.0 3.6 2.0

• 33%
• Adj. Net Interest Income

108.0 141.0 96.2

• 11%

Net Trading Income (Loss)* 9.0 14.7 5.2

• 42%

Net Fees & Commissions 14.3 18.5 10.5

• 27%

Other Operating Income** 11.9 16.2 7.0

• 41%

Total Operating Income 143.2 190.4 118.8

• 17%

Provisions (-) 25.5 39.6 38.7 52% Opex (-) 101.0 134.9 119.4 18% Profit Before Tax 16.7 15.9

• 39.3
• 335%

Tax (-) 3.3 3.1

• 5.0
• 252%

Net Income 13.4 12.8

• 34.3
• 356%

** Including TL 2.1 mio reversal of general loan provision * Foreign exchange gain/loss resulted from derivatives are included in Net FX Gain (Loss), not in Net Trading Income (Loss)

Income Statement

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Financial Performance

 Balance Sheet  Loan Portfolio  Retail Loans  Deposits  Capital Base  Asset Quality

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75% 6% 5% 14%

2014

IEA: 86% 75% 9% 1% 15%

2014 Q3

IEA: 85% 60% 19% 4% 17%

2015 Q3

IEA: 83%

Funds Borrowed & Interbank

 Composition of Assets

Balance Sheet

 Composition of Liabilities & SHE

YoY: 65.4%

64% 16% 3% 17%

2014

620

Deposits Others Shareholders’ Equity (TL mio) Securities Loans Other IEA Non-IEA

62% 18% 4% 16%

2014 Q3

622

40% 47% 4% 9%

2015 Q2

564

YoY: -9.3%

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Loan Portfolio

 Cash Loans  Non-Cash Loans

78% 22%

2014

2,765

FX Turkish Lira Total (TL mio)

49% 51%

2014

850

FX Turkish Lira Total (TL mio)

60% 40%

2015 Q3

3,798

80% 20%

2014 Q3

2,841

45% 55%

2014 Q3

985

41% 59%

2015 Q3

762

YoY: -22.6% YoY: 33.7%

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88% 11% 1%

2015 Q3

86% 13% 1%

2014

28.2% 12.4% 8.8% 9.6% 4.2% 3.0% 2.4% 1.5% 1.6% 1.9% 2.2% 3.1% 5.0% 0.0% 0.3% 1.4% 0.5% 0.9% 0.8% 0.3%

Cash Loans Non-Cash Loans

Corporate/Commercial Loans

 Breakdown by Industrial – Top 10 Sectors  Breakdown By Borrower

Loan Portfolio

• ICBC Turkey has a well-diversified client base

across different industries and regions enabling better risk control and higher profitability.

• Credit policies do not favour any business line
• r company type.
• Financial structure & cash generation ability
• f the companies, along with morality of the
• wners and value of collateral compose an

integral part of the evaluation criteria.

* Commerce represents wholesale and retail commerce activities including motor vehicles

Consumer Loans Credit Cards 87% 12% 1%

2014 Q3

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Retail Loans

 As required by BDDK Resolution, the mortgage loans has a loan to value ratio of 75%.  The average maturity of mortgage loans is approximately 7 – 8 years.

* Specialized loans granted to farmers for vehicle purchases are classified in retail loans

60% 29% 7% 4%

2014

394

Housing Loans General Purposes & Consumer Loans Credit Cards Auto Loans

55% 32% 8% 5%

2014 Q3

364

55% 37% 6% 2%

2015 Q3

447

YoY: 22.8%

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62% 38%

2014

Deposits

 Savings – Commercial & Others Composition  TL – FX Composition

58% 42%

2014

2,342

YoY: -7.1% YoY: -0.8% FX Turkish Lira Total (TL mio) Commercial&Others Saving Deposits

53% 47%

2014 Q3

2,343

47% 53%

2015 Q3

2,496

YoY: 6.5%

65% 35%

2014 Q3

59% 41%

2015 Q3

25 18.04% 18.91% 12.70% 86.4% 85.9% 85.9% 17.49% 18.30% 12.03% 0.55% 0.61% 0.67% Tier 2 Tier 1

* Equity calculation amended by BRSA for preparation to Basel III by adapting common equity (going concern capital)

538 533 485

Capital Base



Capital Adequacy Ratio

 Free Equity, TL mio

Free Equity/Equity Total Car Ratio

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2014 Q3 2014 2015 Q3

3.8% 4.2% 3.6% 2.1% 2.1% 2.2%

ICBC Turkey Market Average

Asset Quality

 NPL / Total Cash & Non-Cash Loans (%)

 Reserve Coverage (Including portfolio reserves)

88% 91%

2014

103%

2014 Q3 2015 Q3

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Credit Ratings

 Fitch Ratings

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Credit Ratings

Stable

LONG – TERM IDR

AAA

NATIONAL

BBB

FOREIGN CURRENCY

BBB+

LOCAL CURRENCY

OUTLOOK

June 10, 2015

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.

• Mr. D. Halit DOVER

Assistant General Manager Global Head of International Relations Group +90 212 335 5295 halit.dover@icbc.com.tr E-mail : ir@icbc.com.tr, fi@icbc.com.tr Address : Maslak Mah. Dereboyu 2 Cad. No: 13 34398, Sarıyer - Istanbul - TURKIYE Fax : +90 212 276 2365 SWIFT : ICBK TR ISXXX (Jan 2016) Reuters : ICBCT (Jan 2016)

• Mrs. Ece Karabulut

Platform Assistant +90 212 335 5427

• Ms. Irem YURTSEVER

+90 212 335 5291 irem.yurtsever@icbc.com.tr

.

• Ms. Sanem CELEPCI

+90 212 335 5290 sanem.celepci@icbc.com.tr

Your Contacts

• Ms. Arzu SOLEYMANI

arzu.soleymani@icbc.com.tr +90 212 335 5293

• Ms. Buket HAVUCOGLU

buket.havucogu@icbc.com.tr +90 212 335 5289

• Mr. Liu WENBIN

+90 212 335 5292 liu.wenbin@icbc.com.tr Vice President Manager Assistant Vice President Assistant Vice President Assistant Vice President

• Ms. Özge CENESIZOGLU
• zge.cenesizoglu@icbc.com.tr

+90 212 335 5294 Specialist

• Ms. Yasemin COLPAN

+90 212 335 5296 yasemin.colpan@icbc.com.tr Vice President

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Your Global Partner, Your Reliable Bank...

Disclaimer Statement The information, opinions and estimates contained in this document have been compiled or arrived at by ICBC Turkey from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. All opinions and estimates contained in this document constitute the Company’s judgement as of the date of this document and are subject to change without notice. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgement by any recipient. The Company does not accept any liability whatsoever 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.