1Q07 BRSA RESULTS

INVESTOR PRESENTATION

TSKBTSKB

BANKING SECTOR vs TSKB

APPENDICESAPPENDICES

3

TSKB at a Glance...

8.4%

Main SubsidiariesOwnership Structure*

Yatırım Finansman Securities

50.1%41.5%

İş Leasing

TSKB Real Estate Appraisal

* 50% of stocks are quoted at ISE.

Free Float**

pp

TSKB Real Estate Investment Trust

50% of stocks are quoted at ISE. ** 27% foreign participation (54% of the free float stocks)

Credit Rating

Financial Summary (USD mn)

Assets 3,265Credit RatingLoans 1,829

Equity 447B1

Net Income 16BB-

Paid-in Capital 300 mn TRY

4

Mission

MISSIONMISSIONCoupling reliable, objective, customeroriented development banking withMISSIONMISSION oriented development banking withdynamic investment banking activities

To promote the growth of private sectorTo encourage and assist local and foreign capital to

participate in Turkish companiesparticipate in Turkish companiesTo contribute to the growth of capital markets in Turkey

5

History

Established with the support of

CBT and IBRD to Issued Samurai B d ith T ki hMerged with S i Y tCBT and IBRD to promote the

private sector in Turkey

Bonds with Turkish Treasury guarantee

Sınai Yatırım Bankası (SYB)

1950 1960’s 1980’s 1990’s 2000’s

Corporate bondsissued and

d ittPromoted private

i t t iMarket leader in

investment banking

Start of APEX

underwritten investment in underdeveloped

regions

investment banking activities banking activities

Public offerings from equity portfolio

6

Core Business Lines

C t & I t tCorporate & Development

Banking

Investment Banking Treasury Asset Management &

Brokerage

Medium & Long-term Financing to Private Sector ( th 4000

IPOs; SPOs

M&As

Fi i l d

Fixed Income

Treasury Marketing Unit

Asset Management

TSKB Mutual Funds have (more than 4000

companies)

Strong Project Finance capabilities

Longstanding

Financial and Management Consultancy

Corporate Restructuring

g(TMU)

Structured Products

secured stable returns

High levels at the fund performance listingsLongstanding

relations with solid corporate base

Well-diversified sector coverage

g

Rendering intermediary services for the futures and options traded in the

listings

Trade Financetraded in the Turkish Derivatives Exchange (TURKDEX)

7

Main Participations

Entity Sector TSKB OwnershipCapital

(mn TRY)Market Price*

(mn TRY)

Yatırım Finansman Securities Financial 88.76% 11.7 Not listedYatırım Finansman Securities Financial 88.76% 11.7 Not listed

TSKB Real Estate Investment Trust Financial 96.00% 10.0 Not listed

İ L i Fi i l 28 56% 100 0 318 0İş Leasing Financial 28.56% 100.0 318.0

TSKB Investment Company Trust Financial 29.75% 18.0 12.2

Yatırım Finansman Investment Company Trust Financial 10.78% 10.0 7.9

İş Venture Capital Investment Trust Financial 16.67% 22.5 77.4

İş Factoring Financial 14.75% 16.0 Not listed

TSKB Real Estate Appraisal Real Estate 80.00% 0.3 Not listed

*, as of June 21, 2007

Total book value of EIB Venture Capital Participations as of 2006 are 10 USD mn

8

Medium&Long Term Funds by Multilateral Agencies

European Investment Bank (EIB) p ( )

World Bank (IBRD)

Japan Bank for International Cooperation (JBIC)

Kreditanstalt für Wiederaufbau (KfW)

Council of Europe Development Bank (CEB)

International Finance Corporation (IFC)International Finance Corporation (IFC)

Agence Française de Développement (AFD)

Instituto de Credito Oficial of the Kingdom of Spain

9

Funding Base (mn)A tA t TT M t itM t itAmountAmount TenorTenor MaturityMaturity

10

Funding Base (mn)A tA t TT M t itM t itAmountAmount TenorTenor MaturityMaturity

11

Funding Base

9.0% EIB

Currency Risk Structure (USD mn)

(mn USD) USD EUR JPY Total

Total Assets 1 121 1 099 61 2 281

By Sources

35.5%5.6%

1.8%

9.0% EIB

CEB

AFD

Total Assets 1,121 1,099 61 2,281

Total Liabilities 1,082 1,103 71 2,256

Net On-Balance Sheet Position

39 -4 -10 25

JBIC

IBRD

KFW

Net Off-Balance Sheet Position

-60 3 25 -31

Net -21 -1 15 -6

7.7%4.7%8.6%

27.1%KFW

IFC

Syndication

70% of Total Assets and 69% of Total Liabilities are

Largest share in TSKB’s funding

Total Liabilities are F/C denominated

No currency No maturity g

base belongs to EIB, followed by

IBRD

No interest rate mismatches

12

Sustainable Growth Over the YearsTotal Assets (USD mn) Funds Borrowed (USD mn)

2,8813,265

2 010

2,4222,769

78% of the2,466 2,378 2,010 1,86678% of the Long Term Funds

borrowed are guaranteed

2005 1Q06 2006 1Q07 2005 1Q06 2006 1Q07

by the Turkish Treasury.

Total Loans (USD mn) Shareholders’ Equity (USD mn)

1,757

1,460

1,829

1 500

2,000

80% 408 427 418447Loans/Assets

is 56%,1,4601,329

61% 61%

53% 56%500

1,000

1,500

50%

60%

70%is 56%,

one of the highest ratio in the sector.

0

500

2005 1Q06 2006 1Q0730%

40%

Loans Loans / T Assets 2005 1Q06 2006 1Q07

13

Loans Loans / T. Assets

Balance Sheet Composition

Assets Liabilities and Equity

18%14%

2%

15%17%

3% 4% 2%6%6%10% 11%

53%61%

61% 56%

80%85%

78%84%

37%28% 33%

38%

2005 1Q06 2006 1Q07

Borrowings Equity Others

2005 1Q06 2006 1Q07

Liquid Assets Loans Others

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Loan Book

11%4%

6%

FINANCE

ENERGY PRODUCTION

ENERGY DISTRIBUTIONNPL’s are

NPL Ratio vs. Coverage Ratio100%

5%

6%

100%

120%

Well Diversified Loan Portfolio

29%6%

5%

5%

TOURISM

OTHER MINING

OTHER PRODUCTION

TRANS. & COMMU.

TEXTILE

METALS

low and fully

provisioned2.4% 2.2%1.3% 1.3%2%

3%

4%

40%

60%

80%

7%2%

3%

3%

3%4%

4%

4%

4%

VEHICLE PRODUCTION

FOOD

CHEMISTRY

OTHER

PLASTICS

SOCIAL SERVICES

CONSTRUCTION

-1%

1%

2005 1Q06 2006 1Q07 0%

20%

NPLs Coverage RatioCONSTRUCTION

NPLs (USD mn) FX Composition of the Loan Book(USD mn)

728

61USD

EUR

JPY

33 32

24 23.7

NPL amount

declined by 26% yoy

974

2005 1Q06 2006 1Q07

15

Securities Portfolio

Securities Portfolio (USD mn) Average Maturity (Years)

1 727

TRYFC

6.59

2.65

1.72

006

1Q07

405 767599 77%71%

55%

2.55

4.25

1.43

1Q06

20

TL SecuritiesFX Securities

263 232242

1Q06 2006 1Q07

FX FX

Breakdown of Securities Portfolio

T t l S itiFloating10%

Zero Coupon Bonds49%FX Fixed

TL Floating

24%

Floating15%

Zero Coupon Bonds47%

FX Fixed14%

TL Floating

24%

Total Securities Portfolio is

classified as ‘Available for

S l ’49%17%47%14% Sale’

2006 1Q07

16

Sufficient CapitalisationCapital Base (USD mn) Capital Adequacy Ratio

Tier I Capital

Tier II Capital

Deductions 33%37%

32%Deductions344

391412

27%33%32%

-135-1

14056

-1

62

2005 1Q06 2006 1Q07

Risk Weighted Assets1Q06 2005 1Q07

Free Capital

Market Risk Credit Risk

9.2%11.1%10.4% 9.8%

80% 82% 97% 83%

Market Risk Credit Risk

2005 1Q06 2006 1Q07

17%3%20% 18%

2005 1Q06 2006 1Q07

17

Income Statement

Income CompositionNet Profit (USD mn)

9% 7%

11%11%

20.215.7

82%

9%

80%

7%

1Q06 1Q07 1Q06 1Q07Adj NII Other Income Net Commissions

Interest Income (USD mn) Breakdown of Interest Income

Adj. NII Other Income Net Commissions

67Sh f IEA i

53 41% 46%Loans

Li id

Share of IEA in TA is 88%

1Q07 1Q07

59% 54%

1Q06 1Q07

LiquidAssets

18

1Q06 1Q07

Financial SummaryIncome Statement Loan Spread

(000 USD) 1Q06 1Q07 Change2.4 2.3 2.3Adj. Net Interest Income 29,005 23,576 -19%

Net Commissions 3,891 3,162 -19%

Released Provisions 1,914 915 -52%

1Q06 2006 1Q07

Net Interest Margin

Other Operating Income 1,487 1,046 -30%

Net Banking Income 36,297 28,700 -21%

Personnel Expenses 4,248 4,455 5%

Adm. Expenses 842 938 11% Net Interest Margin

5.3

d pe ses 8 938 %

Other Op. Expenses 1,474 1,728 17%

Operating Profit 29,734 21,578 -27%

Provision Charges 987 - 2,351 - 138%

4.13.3

Tax Provision 8,633 - 3,511 - -59%

Net Profit 20,113 15,716 -22%

1Q06 2006 1Q07

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Financial Highlights

(USD mn) 1Q06 2006 1Q071Q06 2006 1Q07

Ratios Financials

(USD mn) 1Q06 2006 1Q07

Assets 2,378 2,881 3,265

1Q06 2006 1Q07

CAR 32.2% 32.9 % 27.4 %

Liquid Assets

668 946 1,241

Loans 1,460 1,757 1,829

Free Capital 11.1% 9.8 % 9.2 %

Cost to income

24.0% 25.7 % 24.8%

Partic. 136 106 113

F d 1 866 2 423 2 769

income

NIM 5.3% 4.1% 3.3%

ROAE 19 3% 18 7 % 14 4 % Funds borrowed

1,866 2,423 2,769

Equity 427 417 447

ROAE 19.3% 18.7 % 14.4 %

ROAA 3.3% 2.9 % 2.0 %

20

BANKING SECTOR vs TSKB

TSKB

APPENDICES

21

Banking Sector vs TSKB as of 2006

NPL IEA / T.ASSETSLOANS / ASSETS

3.8%

1.3%

92% 90%45%

58%

Sector TSKB Sector TSKBSector TSKB

TOTAL EXPENSES / AVG. ASSETS

ROAEROAA

3.4%

1.1%

18.9% 18.1%2.3% 2.7%

Sector TSKB Sector TSKBSector TSKB

22

TSKB

BANKING SECTOR vs TSKB

APPENDICES

23

Ratings

TSKB’s Fitch Ratings (November 2006) TSKB’s Moody’s Ratings (April 2007)

F i d L l C Fi i l St ht R ti D+

Long Term Foreign Currency BB-

Foreign and Local CurrencyOutlook (FSR) Stable Long Term Foreign Currency B1

Financial Strenght Rating D+

Long Term Local Currency BBShort Term BOutlook StableNational A+

Local Currency Deposit Baa1/P2Long Term Local Currency BB

Foreign Currency Deposit B1/NP

Turkey: Sovereign Rates

S&P Jun 28, 2006 BB- Stable

Outlook StableIndividual C/DS t 3

National A+

Moody’s Dec 14, 2006 Ba3 StableTSKB’s Main Shareholders’ Fitch Ratings

LTFC O tl k S t I di id l

Support 3

Fitch May 10, 2007 BB- Stable

İş Bank BB Positive 4 CVakıfbank BB- Positive 4 C/D

LTFC Outlook Support Individual

24

Vakıfbank BB Positive 4 C/D

Participations as of 2006

Entity Sector Ownership Capital (TRY)

Yatırım Finansman Menkul Değerler A.Ş. (Yatırım Finansman Securities) Financial 88.78% 11,675,000

TSKB Gayrimenkul Yatırım Ortaklığı A.Ş. (TSKB Real Estate Investment Trust) Financial 96.00% 10,000,000

Entity Sector Ownership Capital (TRY)y p p ( )

İş Finansal Kiralama A.Ş. (İş Leasing) Financial 28.56% 100,000,000

TSKB Yatırım Ortaklığı A.Ş. (TSKB Investment Company) Financial 29.75% 18,000,000

Yatırım Finansman Yatırım Ortaklığı (Yatırım Finansman Investment Company Trus Financial 10.78% 10,000,000

Entity Sector Ownership Capital (TRY)Entity Sector Ownership Capital (TRY)

İş Girişim Sermayesi Yatırım Ortaklığı (İş Venture Capital Investment Trust) Financial 16.67% 22,500,000

IMKB Takas Saklama A.Ş. (ISE Clearing House) Financial 5.00% 60,000,000

Vadeli İşlem ve Opsiyon Borsası A.Ş. (Derivatives Clearing House) Financial 1.00% 9,000,000

Gelişen İşletmeler Piyasaları A Ş (Emerging Enterprises Market) 1 00% 10 000 000Gelişen İşletmeler Piyasaları A.Ş. (Emerging Enterprises Market) 1.00% 10,000,000

İş Factoring Finansman Hizmetleri A.Ş. (İş Factoring) Financial 14.75% 16,000,000

Cam Elyaf Sanayi A.Ş. Glass 1.18% 36,121,000

Terme Metal Sanayi ve Tic. A.Ş. Metal 17.83% 1,757,500

TSKB G i k l D ğ l A Ş (TSKB R l E t t A i l) R l E t t 80 00% 300 000TSKB Gayrimenkul Değerleme A.Ş. (TSKB Real Estate Appraisal) Real Estate 80.00% 300,000

İş Portföy Yönetimi A.Ş. (İş Asset Management) Financial 5.00% 10,000,000

Gözlük Sanayi A.Ş. Glass 21.71% 531,196

Servus Bilgisayar A.Ş.* 7.14% 10,450,000

ÜÜnsa Ambalaj San. Ve Tic. Ltd. Şti.* 12.00% 21,927,400

Senapa-Stampa Plastik Ambalaj San. A.Ş.* 10.41% 7,250,000

*These subsidiaries are TSKB's participations via the EIB Venture Capital Fund Scheme

25

Awards

““BestBest RealReal EstateEstate AdvisorAdvisor”” ininTurkeyTurkey –– 20052005““BestBest M&AM&A HouseHouse”” inin TurkeyTurkey bybyEuromoneyEuromoney –– 20052005““BestBest LocalLocal PartnerPartner”” bybyEuromoneyEuromoney AwardsAwards forforExcellenceExcellence –– 20042004““BestBest SecuritiesSecurities FirmFirm”” bybyEuromoneyEuromoney –– 19971997,, 19981998 andand 19991999““BestBest CreditCredit RatingRating amongamong BanksBanksinin EmergingEmerging MarketsMarkets”” 19981998 andandinin EmergingEmerging MarketsMarkets”” –– 19981998 andand19991999 byby ThomsonThomson BankwatchBankwatch““BestBest EquityEquity ResearchResearch”” –– 19971997 bybythethe EmergingEmerging MarketsMarkets InvestorInvestorthethe EmergingEmerging MarketsMarkets InvestorInvestorMagazineMagazine

26

Certificate

27

Organization Chart 2007INFORM ATION

HUMAN RESOURCES

OLCAY TATLIOĞLU Department Head

APPLICAT ION DEVELOPMENT

GÖKHAN ÇANAKPINAR

Department Head

SYSTEM & NETW ORK SUPPORT

ERKAN M İSKET

Manager

ECONOM IC ANALYSIS

FINANCIAL ANALYSIS

TECHNICAL ANALYSIS

TECHNICAL SERVICES

EXECUTIVE VICE

INFORM ATION TECHNOLOGY & HUM AN

RESOURCES

EXECUTIVE VICE PRESIDENT

ŞEMSEDD İN ARAT

SYSTEM DEVELOPMENT

YETK İN KESLER Department Head

REF İK AKINCI Department Head EL İF AYDOĞAN Senior Manager REF İK AKINCI Department Head

EXECUTIVE VICE PRESIDENT

ORHAN BEŞKÖK

INVESTM ENT BANKING & INTERNATIONAL

RELATIONS EXECUTIVE VICE

PRESIDENT ŞEN İZ YARCAN

FINANCIAL INSTITUTIONS

ESTEL GÜRDOĞAN Department Head

CORPORATE FINANCE

HAKAN AYGEN Department Head

RESEARCH GÜNDÜZ

FINDIKÇIOĞLU Department Head

CAPITAL M ARKETS HAYRETT İN ERYILMAZ

Department Head

BOARD OF DIRECTORS

CAH İT KOCAÖM ER

PRESIDENT

İ Ğ

CORPORATE BANKING II

Department Head

CORPORATE BANKING I

FUNDA GÜREL Department Head

CORPORATE BANKING

EXECUTIVE VICE

PRESIDENT BURAK AKGÜÇ

ŞEN İZ YARCAN

ANKARA BRANCH

İZM İR BRANCH

p

ASSET MANAGEMENT

CAH İT KOCAÖM ER CHAIRM AN HAL İL EROĞLU(CEO, M EM BER of THE BOARD)

Department Head

FINANCIAL CONTROL

MUSTAFA GÖKTAŞ Senior Manager

pBURAK AKGÜÇ

AUDIT COMMITTEE MAHMUT MAGEM İZOĞLU

MURAT B İLG İÇ (Mem bers of the Board)

FINANCIAL CONTROL & HEAD OFFICE OPERATIONS

EXECUTIVE VICE PRESIDENT

ÖMER ERYILMAZ

HEAD OFFICE OPERATIONS

ÖZNUR GÖKHAN Department Head

İZM İR BRANCH

INVESTOR RELATIONS UNIT

AYŞE NAZLICA Senior Manager

LEGAL ADVISER

TREASURY

OKAN BÖKE Department Head

TREASURY OPERATIONS

NEŞE DUYGULU Department Head

BOARD OF INTERNAL AUDITORS ECE BÖRÜ

Head of Board of Internal Auditors

INTERNAL CONTROL UNIT

TREASURY & TREASURY OPERATIONS

EXECUTIVE VICE

PRESIDENT Ç İĞDEM İÇEL

GENERAL SECRETARIAT

LEGAL AFFAIRS

AKIN SÜEL

PENSION & ASSISTANCE FUNDS

ESER ÇEL İK ÜN

BAHRAIN BRANCH

ARDA AÇIKSÖZ Branch Manager

Prof. Dr. SAFA RE İSOĞLU

LOANS

UFUK BALA YÜCEL Director

MELTEM AYHAN Senior Manager

RISK M ANAGEM ENT UNIT

MEHMET SUINGUN Senior Manager

AKIN SÜEL Secretary General

AKIN SÜELActing Departm ent

Head

ESER ÇEL İK ÜNSenior Manager

LOAN ALLOCATION & MONITORING

FERHUNDE AYGEN

Senior Manager

28

Contacts

Meclisi Mebusan Caddesi No 161, 34427 FındıklıIstanbul/TURKEY

INVESTOR RELATIONSTel: +90 212 334 5276 Fax: +90 212 243 2975E-mail: ir@tskb.com.tr

www.tskb.com

29

Disclaimer

The information in this document has been obtained by Türkiye Sınai Kalkınma Bankası A.S. (“TSKB”) fromsources believed to be reliable, however, TSKB cannot guarantee the accuracy, completeness, or correctness ofsuch information. This document has been issued for information purposes only. The financial reports andstatements announced by TSKB to the public and the relevant corporations are accepted to be the solestatements announced by TSKB to the public and the relevant corporations are accepted to be the solematerial. TSKB does not accept any liability whatsoever for any direct or consequential loss arising from anyuse of this document or its contents due to the misleading information in this document. All estimationscontained in this document are the opinions of TSKB and can be subject to change without notice. Thisdocument can not be interpreted as an advice, offer to sell, or an invitation to subscribe for or purchase, any ofthe shares in any jurisdiction to any person or to the investors and TSKB can not be held responsible for thethe shares in any jurisdiction to any person or to the investors and TSKB can not be held responsible for theresults of investment decisions made on account of this document. This document has been issued specially tothe person, whom the document is concerned and may not be reproduced, distributed or shared with thirdparties for any purpose. The distribution of this document in certain jurisdictions may be restricted by law.Persons into whose possession this document comes are required by TSKB and the managers to informthemselves about and to observe any such restrictions. No persons has been authorized to give anyinformation or to make any representation. In making an investment decision, investors must rely on their ownexamination of TSKB, including the merits and risks involved. This document is personal to whom it isdelivered by the managers.

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