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THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND MAY NOT BE REPRODUCED, CIRCULATED, DISTRIBUTED OR PUBLISHED (IN WHOLE OR IN PART) OR DISCLOSED BY RECIPIENTS TO ANY OTHER PARTY. BY VIEWING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase any securities of Albaraka Türk Katılım Bankası A.Ş., nor shall any part of it form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Bank. The information contained in this document is published for the assistance of recipients, but is not to be relied upon authoritative or taken in substitution for the exercise of judgment and thorough due diligence by any recipient. The Bank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its content. Any purchase of securities of the Bank should be made solely on the basis of sound financial analysis on the part of the investor, with no liabilities arising against the Bank. The information used in preparing these materials was obtained from or through the Bank or the Bank’s representatives or from public sources. Although prepared in good faith and from sources believed to be reliable, no reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its accuracy, completeness or fairness. The information in this presentation is tentative and therefore subject to verification and change. The projections, forecasts and estimates of the Bank contained herein are for illustrative purposes only and are based on management’s current views and assumptions. Such projections, forecasts and estimates involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ materially from those anticipated in this presentation. The Bank expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based. Investors should note many different risk factors could adversely affect the outcome and financial effects of the plans and projections described herein. As a result, you are cautioned not to place undue reliance on any forward- looking statements. The Bank, its advisers and each of their respective members, directors, officers and employees disclaim any liability in case projections and information given in this document are not realised.

Table of Contents Turkish Economy – Recent Headlines 1 Turkish Economy – Indicators 3 Banking Sector – Dynamics 5 Recent FX Volatility – Recent Government Actions Taken 6 Recent FX Volatility – Key Cost Implications for Banking Sector 7 Recent FX Volatility – Key Cost Implications for Corporate Sector 8 Recent FX Volatility – Implications for Albaraka Turk & Mitigating Points 9 Management Priorities 10 Albaraka Turk At a Glance 11 Albaraka Turk – Historical Financial Performance 12 Albaraka Turk – 1H2018 Financials 13 Debt Capital Markets Issuances 19 Outlook 20 Investor Relations 21

Turkish Economy - Recent Headlines

Material Exchange Rate Depreciation

• n Gepolitical & Global Issues

Re-Balancing of Economic Growth Inflationary Pressures on Exchange Rate Pass-thru Current Monetary Policy Stance of the Central Bank Recent TL Movement to Support Trade Balance & Current Account Dynamics Balance of Payments Deficit to Improve from Slowdown in Capital Inflows

1

• As of 29/08/2018, the Lira has declined YTD by circa 40% vs. the USD
• Concerns regarding high inflation and debates over policy effectiveness have

contributed to recent TL pressures

• Geopolitics has also emerged as a key driving force behind recent TL movement with

US sanctions impacting investor attitudes

• Downgrades by the major rating agencies citing downside risks to Turkish Financial

Institutions are also weighing in on the Lira

Turkish Economy – Recent Developments

• CPI Y-o-Y in July was 15.85% and 17.90% in August reflecting ongoing pressures on

inflation

• Recent acute TL depreciation is contributing to pass-thru inflation via imports on

food prices and is expected to pressure inflation readings moving forward

• Tighter fiscal policy and a re-balancing in domestic demand are expected to provide

some eventual relief to inflationary pressures and the current account deficit

• Foreign Trade deficit in July declined 33% with exports increasing 12% y-
• -y and imports declining 7% y-o-y indicating recent TL depreciation is

leading to an adjustment in the trade balance

• Tourism sector continues to achieve records and provides a source of

incoming hard currency

• Current account deficit to reverse on the back of economic re-balancing
• After growing 7.4% in 2018 and 7.3% in the 1Q2018, a material re-balancing in

economic growth is widely expected in 2018

• High inflation, tighter fiscal policy, lower domestic demand, and global investors’

concerns regarding ongoing financing of the current account deficit in the wake of hawkish US monetary policy are all weighing in on the growth outlook

• Tightening by the Central Bank since Jan.2018 has been taking place with

the policy rate increasing by 975 bps to 17.75%, the O/N lending rate by 1000 bps to 19.25%, and the Late Liquidity window by 800 bps to 20.75%

• Unconventional tightening is also taking place with the policy window

shut and with banks now borrowing at the O/N lending rate, effectively another 150 bps tightening

• Effective use of other monetary policy tools such as ROM to inject USD

liquidity and tightening TL liquidity

• Central Bank has indicated further tightening is on the table following the

most recent release of inflation data on 3 September 2018

• The slowdown in foreign capital inflows will likely change the dynamics
• f the Balance of Payments Deficit by eventually making Turkey less

dependent on foreign capital

2

Turkish Economy - Indicators

Buildup in Inflationary Pressures (Y-o-Y) Monthly Portfolio Flows, USD mln Central Bank Monetary Policy (%) Confidence Indicators

3

17,90% 17,22% 32,13%

8,00% 13,00% 18,00% 23,00% 28,00% 33,00% Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 CPI Core Inflation PPI

• 1.500
• 1.000
• 500

500 1.000 1.500 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Stock Government Bonds Private Sector Bonds 6,00 11,00 16,00 21,00 26,00 Aug-17 Sep-17 Sep-17 Oct-17 Oct-17 Nov-17 Nov-17 Dec-17 Dec-17 Jan-18 Jan-18 Feb-18 Feb-18 Mar-18 Mar-18 Mar-18 Apr-18 Apr-18 May-18 May-18 Jun-18 Jun-18 Jul-18 Jul-18 Aug-18 Aug-18 Aug-18 O/N Lending 1 Week Repo Late Liquidity Window Benchmark 2y Bond 68,3 96,3 0,0 20,0 40,0 60,0 80,0 100,0 120,0 140,0 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Consumer confidence Real sector Confidence s.a. Source: CBRT, TurkStat

Source: TurkStat

Source: CBRT Source: CBRT, BIST

Turkish Economy - Indicators

• 40%
• 20%

0% 20% 40% 60% 80% 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H17 1H18 Revenues (lhs) $ mln Annual Growth (rhs)

Source: Turkish Treasury

13,47% 11,05% 16,26% 14,36% June 2018 Sensitivity

Sensitivity of Capital Ratios to Lira Depreciation from USD/TRY: 4.56 to USD/TRY:7.00

CET1 Ratio CAR 55% 60% 65% 70% 75% 10.000 12.000 14.000 16.000 18.000 20.000 22.000 24.000 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18

Exports (lhs) USD mln Imports (lhs) USD mln Export/Import Coverage Ratio, monthly Export/Import Coverage Ratio, 12 month cumulative

Tourism Revenues have been Recovering, annual revenue growth is 31% in 1H18 Export Coverage of Imports have been Improving, 70% in July 2018 versus 66% in the last 1 year Banks’ Capital is Still Strong, even at USD/TRY of 7.00, CAR stands well above regulatory limit Loan Re-Pricing Taking Place and Margins Management Underway (%)

4

0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 Aug-17 Sep-17 Sep-17 Oct-17 Oct-17 Nov-17 Nov-17 Dec-17 Dec-17 Dec-17 Jan-18 Jan-18 Feb-18 Feb-18 Mar-18 Mar-18 Apr-18 Apr-18 May-18 May-18 Jun-18 Jun-18 Jun-18 Jul-18 Jul-18 Aug-18 $ Lending Rate ₺ Lending Rates $ Deposit Rate ₺ Deposit Rates

Source: Turkish Treasury Source: BRSA Source: CBRT

Banking Sector Dynamics

Annualized 13w Deposit Growth 13w Annualized Loan Growth Rates Banking Sector NPL Formation Rate, 13w Moving Average Loan/Deposit Ratio

5

• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Lira FX Currency Adjusted

• 20%
• 10%

0% 10% 20% 30% 40% 50%

Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18

TL FX Currency Adjusted

• 0,60%
• 0,40%
• 0,20%

0,00% 0,20% 0,40% 0,60% 0,80%

Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Sector Participation Banks 80,0 85,0 90,0 95,0 100,0 105,0 110,0 115,0 120,0 125,0 Aug-18 Jul-18 Jun-18 May.18 Apr-18 Mar.18 Feb-18 Jan-18 Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Particpiaton Banks Banking Sector Source: CBRT Source: CBRT Source: BRSA Source: BRSA

Recent FX Volatility– Recent Supportive Government Actions Taken

Banking Sector Asset Quality

Rules governing the migration of Stage 2 loans that have been re-financed back to Stage 1 have been amended (migration period changed from 1 year to 3 months) Banking Sector aggregate NPL ratio stood at 3.00% for 1H2018, although this is expected to increase in the coming period

Banking Sector Capital Adequacy

Local Regulator (BRSA) allowing banks to use June 2018 foreign currency rates in the calculation of FX denominated Risk Weighed Assets The BRSA is allowing banks not to deduct marked-to-market losses from their equities subject to CAR calculation Banking Sector aggregate CAR stood at 16.26% for 1H2018, more than 2x Basel III requirement of 8% and well above the regulator comfort zone threshold of 12%

INTENDED BENEFITS Banking Sector Liquidity Management

One week repo shut and funding now being done 150 bps higher at the O/N lending rate of 19.25% Central Bank cut Lira reserve requirements by 250 bps for all maturity brackets and lowered reserve requirement ratios for non-core FX liabilities by 400 bps for up to 3 year maturities thereby injecting TL 10 bio, USD 6 bio, and USD 3 bio equivalence of Gold into the financial system Upper limit for FX under ROM was cut to 40% from 45% thereby injecting USD 2.2 bio of liquidity into the banking sector Borrowing limits for Overnight Transactions in the interbank market have been doubled Intraday loan limits for banks has been increased Raised FC Depo limits that may be used as collateral for TL transactions to EUR 20 bio from EUR 7.2 bio Re-started acceptance of EUR under Reserve Options Mechanism in lieu of TL reserves Discount rate for collateral on TL borrowings from CB has been lowered to 5% for all tenors Taxes Hiked on domestic FX deposit accounts and cut on Turkish Lira Accounts

SHORT TERM ALLEVIATION MEASURES

ACTIONS TAKEN:

Relieve buildup pressures in NPLs reporting-wise Provide temporary relief to CARs Measures taken by the Central Bank have largely aimed at broadening the depth and breadth of tools available to support liquidity across currencies while promoting local currency savings. This is being balanced with measures to also tighten monetary policy and promote TL deposits.

6

External Debt of Banking Sector $187 bio Short Term* $102 bio Prone to Non-Rollover $10 bio (90% rollover ratio) Rolled Over $92 bio (90% rollover ratio) Long Term** $85 bio

$ 10.0 bio Lower Debt Rollover of Principal $2.8 bio Higher Interest Rates(s)*** $2.6 bio Higher Interest Rates(s)*** Additional Cost Source

Total Potential Cost: USD 15.4 bio Source: ABT Investor Relations

Recent FX Volatility– Key Potential Costs for Banking Sector

* Source: The Central Bank of Turkey Short-Term External Debt Statistics (Jun.2018), up to 1 year ** Source: The Turkish Treasury External Debt Statistics (Mar.2018), over 1 year ***Assumption that re-financing costs increase on average by 300 bps. Interest on FX debt is assumed to be a weighted average of domestic and external rates.

Banks’ Reserves at the Central Bank ~$45 bio Part of these funds will likely be drawn upon to address the potential UD 15.4 bio additional cost incurred from the recent YTD 40% decline in the TRY vs. USD as of 31/08/2018

7

FX Debt of Corporate Sector $336 bio Short Term* $90 bio Prone to Non-Rollover $9 bio (90% rollover ratio) Rolled Over $81 bio (90% rollover ratio) Long Term* $246 bio Hedged Exposure** $135 bio Unhedged Exposure** $111 bio Hedged Exposure $45 bio Unhedged Exposure $36 bio

$ 9 bio Lower Debt Rollover of Principal $1.4 bio Higher Interest Rates(s)*** $1.9 bio Higher Interest Rates(s), FX Depreciation No Cost None FX Depreciation on Interest Payments $1.1 bio Additional Cost Source

Total Potential Cost: USD 13.4 bio

FX Deposits of

• Corp. Sector

$79 bio

Source: Bloomberg

Recent FX Volatility– Key Potential Costs for Corporate Sector

* Source: Central Bank Report on FX Assets and FX Liabilities on May data (Aug.2018) ** Source: IMF Report (45% from export revenues and 10% from derivatives) ***Assumption that re-financing costs increase on average by 300 bps. Interest on FX debt is assumed to be a weighted average of domestic and external rates.

Part of these funds will likely be drawn upon to address the potential UD 13.4 bio additional cost incurred from the recent YTD 40% decline in the TRY vs. USD as of 31/08/2018

8

POTENTIAL IMPLICATIONS: MITIGATING FEATURES: Debt Servicing of our FX Liabilities

Existing balance between our FC assets and FC liabilities is ensuring there is somewhat of a natural hedge to increased debt burden Gradual deleveraging of FC liabilities taking place (ex: Repayment of USD 200 Million Tier 2 back in May 2018) since last year Balancing of FC DCM transactions with TL-denominated domestic bond issuances dating back to early 2017 We run no open FX position related to customer trades – all done on a back-to-back basis Very strong Liquidity Coverage Ratios for both FC position and FC+LC positions (well above regulatory requirements) One of the lower aggregate Loan-to-Deposit Ratios in the banking sector (100%), particularly for FC (55%) Sound Liquidity with Cash & C.E = 22% of assets (88% FC) and our liquid Hazine sukuk representing 2.5-3% of all assets Wholesale interbank borrowings from global markets represent circa 4% of all assets Comfortable CAR as of 1H2018 was 15.39%, well above regulatory requirements and above Basel 3 requirements (8%) TL depreciation impact on FC-adjusted Risk Weighted Assets is being neutralized by increase in our Tier 1 Ratio due to USD-denominated Tier 1 equity in capital reserves (Tier 1 USD 205 mio sukuk = 24% of total equity) Current CAR is well above these 1H2018 figures We have historically always run a collateralization-centric secured lending policy and therefore the loan book is backed by collateral (loan book overcollateralization is 150% as of 1H2018 We have an early warning signals framework related to potential NPLs and are proactively engaging loan clients We have a robust and versatile approach to managing NPLs including out of court settlements, collateral liquidation, loan restructurings, negotiated cash settlements, collateral enforcement and recovery We are proactively engaging all our existing core lenders/financiers and are providing full and transparent access to our bank policies and procedures as it relates to liquidity management positions and asset quality (within existing information sharing constraints of being a publically traded entity) Current forward-looking 1 year financing plan in place accounts for lower than expected Debt Rollover Ratio(s) with current management priorities focusing exclusively on further liquidity consolidation

Cash & Liquidity Positions as Well as FX Mismatches Capital Adequacy Ratios Asset Quality Debt Rollover Ratio(s)

Recent FX Volatility– Key Implications for Albaraka Turk & Mitigating Tools

9

Management Priorities

Maintain High Liquidity Sustainable Debt & Leverage Levels Asset Quality Management Framework Efficiency & Digitalization Push

• Cash + Cash Equivalents + interbank placements as of 1H2018 represent 22% of total assets

(these levels will be sustained and re-inforced)

• Total liquid assets (including securities portfolio) represents 27% of total assets
• FC Liabilities and FC assets as of 1H2018 was 55.3% and 54.9% (we plan to maintain this

balance)

• Liquidity Coverage Ratios for both LC and FC+LC was 211% and 145% respectively (70% vs

90% regulatory thresholds) – our current LCRs are well above these at present

• Our aggregate loan-to-deposit ratio (LDR) and FC LDR of 100% and 55% stand well below the
• verall banking sector LDRs of 119% and 88% respectively

Supportive Factors: Relatively sticky & longstanding customer deposit base – Strong support from shareholder ABG–Current management emphasis on prioritizing liquidity over loan growth

• Our current tier 1 / RWA leverage ratio of 6.18% is within the regulator threshold of 3% -

We plan to gradually reduce this leverage further to even healthier levels

• Very recent repayment of our USD 200 mio Tier 2 (2023s) to investors reflects our strong

investor-friendly stance

• Prior Plans to repay our upcoming November 2018 maturing USD syndication further

evidence this commitment to gradual deleveraging Supportive Factors: Lack of material overleverage – sound liquidity profile – diversity of our funding base and lack of dependence on just global DCM for funding

• Continued emphasis on improving the Cost to Income Ratio by

consolidating cost-side factors and focusing more on fee-generating income areas

• Branch openings are more niche and focused on low overhead (5-6

personnel per branch) and higher digitalization focus – lower running

• perational costs moving forward
• Recent digitalization push of alternative distribution channels and

process infrastructure is expected to deliver results related to improved customer satisfaction, higher customer retention and positive movement in cost to income

• Systematic, proactive and focused approach in place to manage NPL

stocks that includes: out of court settlements, collateral liquidation, collateral repossession, restructurings, negotiated cash settlements, collateral enforcement and recovery

• Embedded early warning signals framework related to potential new

NPLs introduced last year and will continue to be closely tracked

• Robust underwriting criteria/policies and conservative collateralization /

secured lending-based approach

• Supportive Factors: Colleteralization amount: ~42 Bn TL which has a

breakdown of: 52% Real Estate, 9% Cash& Cash Equivalents, 32% Assignment of Receivable – Recent Gov’t support measures to alleviate short-term pressures

10

Ratings

Long Term Short Term Outlook

B B Stable BBB- A-3 Negative BB+ A3 Stable Stock Info (Price and Ratio as of 30 June 2018

Market Cap. 1,224 bn PE Ratio 6,24 PB Ratio 0.37 Free float shares 227 mn

24

80 137 202 224 461 3925

2002 2007 2012 2014 2018

Oldest Participation Bank in Turkey Dating Back to 1984 The Only Publicly Listed Participation Bank on Borsa Istanbul Stock Exchange (BIST)

# of employees 8x # of branches 9x

Albaraka Türk established and started operations A total of 24,000 investors submit more than USD 7 billion of demands in Albaraka Türk’s IPO, valued at USD 170 million First foreign branch opened in Erbil, Iraq Albaraka Türk achieves the sector’s highest volume syndicated loan with a USD 350 million murabaha syndication The Bank issued its first Basel 2 Tier 2 200 million USD subordinated sukuk in Turkey Albaraka Türk issues its first Senior Sukuk issuance amounted 350 million USD The first Tier 2 subordinated sukuk complying with Basel III criteria are issued in Turkey The bank completes the first conversion of a Basel Iisukuk to Basel III compliant Sukuk amounted 200 million USD

1985 2007 2011 2011 2013 2014 2015 2017

Albaraka Türk At A Glance

Strong Majority Shareholders, the Bahrain- based global islamic banking group, Albaraka Banking Group, and the Islamic Development Bank (Supranational)

Albaraka Banking Group 54,06% Publicly Listed 25,22% Local Shareholders 8,78% Islamic Development Bank 7,84% Alharthy Family 3,46% Others 0,64%

Shareholding Breakdown (2Q2018) Branch Expansion Historical Timeline

Albaraka Türk raises additional Tier 1 capital by successfully issuing the Turkish Banking Sector’s first exchange-listed Tier 1 sukuk

2018

11

*USD equivalent of total assets

17.217 23.046 29.562 32.851 36.229 40.456 8.045 9.870 10.265 9.359 9.584 8.872 2013 2014 2015 2016 2017 1H'18 TRL USD* Total Assets (million TRL) 12.060 16.184 19.505 22.158 25.193 27.689 5.636 6.931 6.773 6.313 6.665 6.072 2013 2014 2015 2016 2017 1H'18 TRL USD** 12.526 16.643 20.346 23.151 25.310 27.711 5.853 7.128 7.065 6.596 6.696 6.077 2013 2014 2015 2016 2017 1H'18 TRL USD* Total Funded Credits* (million TRL) Total Funds Collected (million TRL)

* Financial leasing receivables included **USD equivalent of total funded credits *USD equivalent of total collected funds *USD equivalent of equity

1.497 1.790 2.104 2.273 2.482 3.282 700 767 731 648 657 719 2013 2014 2015 2016 2017 1H'18 TRL USD*

*USD equivalent of net profit share income ** Trialing of Last 4 Quarters’ net profit share income

625 699 886 1.023 1.268 1.126 292 299 308 291 335 247 2013 2014 2015 2016 2017 1H'18** TRL USD*

*USD equivalent of net profit **Trailing of last 4 quarters’ net income.

241 253 303 218 237 302 113 108 105 62 63 66 2013 2014 2015 2016 2017 1H'18** TRL USD* Equity (million TRL) Net Profit Share Income (million TRL) Net Profit (million TRL)

CAGR: +19,1% CAGR: +14,0% CAGR: - 5,1%

Albaraka Türk – A Look Back

12

Albaraka Türk – Q2 Main Highlights (Balance Sheet)

TRL million Q2’17 Q4’17 Q2’18 YtD( %) Y-Y (%)

Total Assets

34.217 36.229 40.456 11,7% 18,2%

Total Funded Credits

22.876 25.193 27.689 9,9% 21,0%

Deposits

23.771 25.310 27.711 9,5% 16,6%

Shareholder’s Equity

2.377 2.482 3.282 32,2% 38,1%

34.217 33.827 36.229 37.084 40.458 22.876 23.711 25.193 25.938 27.689 23.771 24.109 25.310 26.099 27.711 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Total Assets Total Funded Credits Total Collected Funds

Asset Segmentation (Q2’18)

Funded Credits; 68,4% Securities Portfolio; 6,6% Liquid Assets*; 21,8% Other Assets; 3,2%

*Liquid Assets includes Cash and Cash Equivalents, Derivative Financial Assets and Expected Loss Provision (-)

13

Albaraka Türk – Q2 Main Highlights (Income Statement)

TRL million Q2’17 Q1’18 Q2’18 QoQ (%) Y-Y (%) Profit Share Income 655 663 720 8,6% 9,9% Net Profit Share Income 321 250 249

• 0,5%
• 22,6%

Total Operating Profits 417 597 464

• 22,3%

11,3% Provisions for Loan Loss 96 257 96

• 62,8%

0% Net Operating Profits 116 115 129 12,1% 11,1% Tax Provision 20 17 30 76,3% 48,6% Net Profit 96 98 98 0,8% 3,1%

96 98 98 Q2’17 Q1’18 Q2’18 Net Profit 3,53 3,46 3,35 3,19 3,14 3,92 3,87 4,02 3,71 3,35 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 NPSM (Exc. JV Projects)* Net Profit Share Margin*

3,1%

321 250 249 87

Q2’17 Q1’18 Q2’18 Net Profit Share Income JV

14

1649 1330 1349 1090 1.070 625 509 533 629 640 979 989 994 995 941

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Available for sale Held to Maturity Other Marketable Securities

2.827 3.253 2.714 2.650

Composition of Total Assets (TRL mn) (Q2’18) Liquid Assets (TRL mn) Total Securities Portfolio (TRL mn) Securities Yield (%)

10,02 9,78 9,77 9,20 8,89

Q2'18 Q1'18 Q4'17 Q3'17 Q2'17

(*) Profit share income received from securities for the last 4Q/5Q average securities 2.876 9.734 8.784 9.612 9.397 10.926

28,44% 25,97% 26,53% 25,34% 27,01%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Liquid Assets % of Total Assets Funded Credits; 68,4% Securities Portfolio; 6,6% Other Liquid Assets*; 21,8% Other Assets; 3,2% *Liquid Assets includes Cash and Cash Equivalents, Financial Assets Measured at Fair Value through Profit/Loss, Financial Assets Measured at Fair Value through Other Comprehensive Income. * Other Liquid Assets includes Cash and Cash Equivalents and Derivative Financial Assets

Albaraka Türk – Asset Composition

15

Albaraka Türk – Funded Credits Portfolio

9,9 10,0 13,7 13,4 5,9 7,0

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Blended Yield, adjusted, trailing Yield on TL Credits, adjusted, trailing Yield on FX Denominated Credits, trailing

*USD equivalent

Total Funded Credits (including financial leasing, million)

QoQ Growth: 6,7% in TRL terms YoY growth: 21,0% in TRL terms

Yield on Performing Credits (%)

Profit share income received from credits for the last 4Q/4Q average credits

Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Corporate Credits 40,8 40,4 40,3 40,2 39,6 SME Credits 44,6 45,4 46,2 46,9 49,2 Retail Credits 14,6 14,2 13,5 12,8 11,2 Total 100.0 100.0 100.0 100.0 100.0 49% 33% 18% TRL USD* EUR* Composition of Total Funded Credits* (%) Currency Composition of Total Funded Credits* (Q2’18)

*Including USD & EUR indexed credits *According to BRSA definition

Q2’17 Q4’17 Q2’18

QoQ Ytd YoY TL Credits, TL

12.215 13.151 13.599 2,7% 3,4% 11,3%

FC Credits, $*

1.520 1.619 1.771 14,3% 9,3% 16,5%

FC Indexed, $* 1.516 1.566 1.319

• 21,0%
• 15,8%
• 13,0%

Total Credits, TL

22.876 25.193 27.689 6,7% 9,9% 21,0%

16

22% 21% 23% 21% 24% 19% 20% 22% 19% 21% 59% 59% 56% 60% 56% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Fund Borrowed* Current Accounts Participation accounts

Composition of Total Liabilities (Q2’18,%) Composition of Funding Base (TRL million)

68,5% 21,2% 8,1% 2,2% Funds Collected Wholesale Funding Shareholders' Equity Others

32.885

19,2%

36.295 30.448 30.501

*Fund Borrowed includes Funds Borrowed , Borrowings from Money Market and Subordinated Loans

32.689

TL millions

Dec’17 Jun’18 Comp.

• Ytd. Growth

Funds Collected

25.310 27.711 68,5% 9,5%

Wholesale Funding

7.379 8.584 21,2% 16,3%

Funds Borrowed

5.412 6.717 16,6% 24,1%

Syndicated Loans

1.192 1.907 4,7% 60,0%

Wakala

1.802 1.550 3,8%

• 14,0%

Issued Lease Certificates & Sukuk

1.781 2.386 5,9% 34,0%

Other

636 873 2,2% 37,3%

Sub-Ordinated Debt (Tier 2)

1.627 1.040 2,6%

• 36,1%

Interbank

340 827 2,0% 143,2%

Shareholders’ Equity

2.482 3.282 8,1% 32,2%

Paid in Capital

900 900 2,2% 0,0%

Tier 1 Sukuk

• 776

1,9%

Others

1.582 1.606 4,0% 1,5%

17

Albaraka Türk – Funding Profile

Albaraka Türk – Asset Quality

6,02 5,36 4,68 5,34 5,57 2,73 2,39 1,98 2,20 2,35 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Gross NPL Net NPL

Gross Funded Credits by Groups (including financial leasing, million)

193 198 189 243 227 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Cost of Risk** (bps) NPL Ratio*

** Specific provisions for credits for last 4Q/ 5Q average credits *Including financial leasing & accruals and rediscounts

Provisioning

87,6% 89,9% 91,8% 85,4% 81,5%

6,4% 4,8% 3,5% 9,3% 12,9% 6,0% 5,4% 4,7% 5,3% 5,6%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

• I. Group
• II. Group
• III. Group

778 725 699 848 929

54,6% 55,3% 57,7% 58,7% 57,7%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Lifetime ECL Impaired Credits (Stage 3) Provisioning Ratio (%)

23.632 24.416 25.878 27.048 28.887

18

Albaraka Türk – Outstanding DCM Issues

Domestic Issuances

Date Type Amount Maturity Coupon rate March 2018 TRY Lease Certificate TL 200 mio 179-day 13,00% May 2018 TRY Lease Certificate TL 200 mio 135-day 13,70 % June 2018 TRY Lease Certificate TL 200 mio 178-day 16,00 % July 2018 TRY Lease Certificate TL 200 mio 113-day 17,75 % July 2018 TRY Lease Certificate TL 75 mio 107-day 17,75 % August 2018 TRY Lease Certificate TL 75 mio 112-day 17,75 % August 2018 TRY Lease Certificate TL 70 mio 372-day CPI Indexed

International Issuances

Date Type Amount Maturity Coupon rate June 2014 Wakala Senior Sukuk USD 350 mio 5-year 6,25 % November 2015 Wakala Sukuk (Subordinated Loan) USD 250 mio 10-year 10,50 % February 2018 Wakala Sukuk (Sub ordinated –Tier 1) USD 205 mio Perpetual 10,00%

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Macroeconomic Outlook

Address : Saray Mahallesi Dr.Adnan Büyükdeniz Caddesi No:6 34768 Ümraniye/ İSTANBUL E-mail : yim@albarakaturk.com.tr Tel : +90 216 666 03 03 Fax : +90 216 666 16 20 Internet : www.albaraka.com.tr

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