1 As of 31.12.2009 1. 2 Contents Pages Background & Ownership 3-4 Financial Figures and...

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As of 31.12.2009

www.sekerbank.com.tr1

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Contents

PagesPages

Background & Ownership Background & Ownership 3-43-4Financial Figures and Performance 6- 10

Risk Management 12-17

Business Strategies & Current Strengths 19-22

National Presence and Participations 24-26

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Şekerbank is one of Turkey’s leading private commercial banks, offering universal banking services through its network of 260 branches.

Background

• Milestones

• 1953 : Established in Eskisehir as the “Sugar Beet Cooperative Bank”

• 1956 : Moved to Ankara and renamed as Şekerbank

• 1970’s : Shifted to full service banking from cooperative banking

• 1980’s : Concentrated in commercial banking

• 1997 : Initial public offering

• 2002 : Initiated restructuring to change from a traditional commercial bank into • multi channel, diversified financial institution based on customer and • segment focused applications

• 2004 : Moved its Head Office to Istanbul

• 2006 : In June; Partnership agreement to sell 33,979% of shares to BTA (Bank Turan Alem) Group of Kazakhstan

• 2007 : In March; Conclusion of Partnership Agreement with BTA Group

• 2008 :Şekerbank rose by 393 places in the Top 1000 World Bank Ranking of Banker Magazine, rising to 582. from 976. Sekerbank was one of the top 50 fastest movers in rankings out of the Top 1000 World Banks in 2007

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33,98%

33,98%

0,08%

31,96%

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Şekerbank Pension Fund

•Started operations in February 1965

•Consists of 6965 members (current & retired employees)

•Income sources of the Personnel Pension Fund are premiums, rental income and income from portfolio investments

BTA Securities JSC

• 100% consolidated subsidiary of Bank TuranAlem ( BTA) Kazakhstan (www.bta.kz)

•81.5% of BTA has been acquired by the sovereign welfare fund of Kazakh government Samruk Kazyna, in February 2009.

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As of June 2010, -BTA Securities and National Welfare Fund of Kazakhstan “ Samruk Kazyna” signed shares trust management agreement for Şekerbank’s shares. In accordance with this agreement, BTA Securities placed shares of Sekerbank T.A.Ş. into trust management of National Welfare Fund Samruk Kazyna.

-IFC and Şekerbank Personnel Social Security Foundation signed an option agreement for IFC purchasing Şekerbank shares up to 5%. As per the said agreement, IFC buys from the ISE quoted shares currently held by Sekerbank Personnel Social Security Foundation , wihout changing 1/3rd ownership of Sekerbank Pension Fund.( Şekerbank employees have two separate foundations:-Sekerbank Pension Fund, the major shareholder of the bank-Şekerbank Social Security Foundation which has a portfolio of Sekerbank floating shares on ISE )

Ownership

Şekerbank Pension Fund 33,98 % BTA Securities JSC 33,98%Private Sugar Factories and Cooperatives 0,08% Quoted on ISE 31,96%

-Personnel Social Security Foundation 8,94%-Konya Seker San. Ve Tic A.S. 6,62%-Others 16,4%

As of 30 June 2010

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Contents

PagesPages

Background & Ownership 3-4

Financial Figures and PerformanceFinancial Figures and Performance 66-- 10 10Risk Management 12-17



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Financial Figures

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Bank Only, Audited in BRSA Standards %(Thousand TL) 31.12.2009 Change 31.12.2008

Balance Sheet

Total Assets 8.954.704 11% 8.041.338

Loans 5.713.987 15% 4.950.403

Deposits 6.639.981 12% 5.931.571

Shareholders' Equity 1.249.390 28% 975.271

Tier I Capital 1.148.798 24% 925.845

%31.12.2009 Change 31.12.2008

Income Statement

Net Interest Income 714.794 14% 626.591

Profit Before Tax 198.557 9% 181.744

Net Profit 152.488 6% 144.307

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• In December 2008, the Board of Directors resolved to increase the paid in capital of the bank from TL 400 million to TL 500 million. The increase of TL 100 million cash injection took place in the first half of 2009. This is the sole capital increase in cash in the Turkish Banking sector for 09.

• In 2008, Sekerbank ranked the first in deposit growth and the second in asset and profitability growth among privately owned commercial banks. In 2009, the Bank recorded the only paid-in capital injection and recorded the highest tier-1 capital growth rate.

• The successful performance of Şekerbank on small and micro business contributed to the bank’s close cooperation with IFI’s:

– In April 2008, Sekerbank T.A.S. has been chosen as a partner in European Union’s “Small Enterprises Loan Programme – SELP II with three other Turkish banks.

– In May 2008, Sekerbank received a USD 10 million loan for 5 years under the insurance of “Overseas Private Investment Corporation” (OPIC) to support SMEs and micro business.

– In June 2008, Sekerbank signed a subordinated loan agreement for EUR 15 million for 10 years with KfW to support small and micro segment.

– In July 2009, Sekerbank T.A.S. received a EURO 10 million French government subsidized loan from Agence Française de Developpement (AFD) for a tenor of 12 years for small and micro business.

– Following the 7-year 36 million loan agreement for SME and small business segment in November 2007, Sekerbank received a 5-year EUR 30 million food & agri loan from IFC in December 2009.

– In June 2010, Şekerbank signed a loan agreement with The Green for Growth Fund (South East Europe Energy Efficiency Fund) for a 7 years EURO 25 million for energy efficiency lending.

Summary of Achievements 2008-2010

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Bank Only, Audited in BRSA Standards

I. III.Capital 31.12.2009 Funding 31.12.2009

YoY Increase in SHE 28,11% Deposits to Total Funding 88,80%YoY Increase in Tier 1 Capital 24,08% Net Loans to Deposits 81,57%Equity to Total Assets 13,95%Capital Adequacy Ratio 16,30%

II. IV.Asset Quality 31.12.2009 Profitability 31.12.2009

Loans to Total Assets 63,81% ROAA 1,79%Gross NPL to Total Loans 7,04% ROAE 13,71%Provisions to NPLs 74,07% Cost / Income 49,57%Net NPLs 1,92% YoY Increase in Net Interest Income 14,08%Net Interest Margin 8,44% YoY Increase in Net Fee Income 9,71%

YoY Increase in Net Profit 5,67%

Performance Review

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Performance in 2008 and 2001 crises

Shareholders' Equity

0

200

400

600

800

1.000

1.200

1.400

Dec.07 Dec.08 Dec.09

MIL

LIO

N T

L

Shareholders' Equity

0

50

100

150

200

Dec.00 Dec.01 Dec.02 Dec.03

MIL

LIO

N T

L

Total Deposits

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

Sep

.00

Dec

.00

Mar

.01

Jun.

01

Sep

.01

Dec

.01

Dec

.02

Mar

.03

Jun.

03

MIL

LIO

N

TL

Total Deposits

5.0005.2005.4005.6005.8006.0006.2006.4006.6006.800

Sep

.08

Dec

.08

Mar

.09

Jun.

09

Sep

.09

Dec

.09

MIL

LIO

N T

L

2008 2001

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2009 Performance Comparison Peer Group* (Growth Ratios)

As of 31.12.2009

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Average of 10Şekerbank

-1,95%

11,35%

-5,00%

0,00%

5,00%

10,00%

15,00%

Asset Growth Rate

Average of 10

Şekerbank

5,08%

11,94%

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

Deposit Growth Rate


16,55%28,10%

0,00%5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

Equity Growth Rate


12,29%

24,08%

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

Tier 1 Capital Growth Rate

Average of10Şekerbank

1,82%

12,84%

0,00%

5,00%

10,00%

15,00%

Net Loan Growth Rate

Peer Group: Finansbank-TEB-ING-FortisBank-Citibank (as of 30.09.2009) -Şekerbank-Denizbank-HSBC-Alternatif Bank--Tekstil Bank

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2009 Performance Comparison (cont’d) Peer Group* (Balance Sheet Ratios)As of 31.12.2009

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99,52%

81,56%

0,00%

20,00%

40,00%

60,00%

80,00%

100,00%

Loans to Deposits


17,23%16,30%

0,00%

5,00%

10,00%

15,00%

20,00%

Capital Adequacy Ratio


2,18%1,92%

1,50%

1,70%

1,90%

2,10%

2,30%

Net Npls to Loans


80,84%88,80%

70,00%

75,00%

80,00%

85,00%

90,00%

Deposits to Total Fund


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2009 Performance Comparison (cont’d) Peer Group* (Profitability Ratios)

As of 31.12.2009


1,53%1,79%

1,00%

1,20%

1,40%

1,60%

1,80%

Return on Average Assets


12,46%13,71%

10,00%

11,00%

12,00%

13,00%

14,00%

Return on Average Equity


7,32%8,44%

6,00%

6,50%

7,00%

7,50%

8,00%

8,50%

Net Interest Margin



52,22%49,57%

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

Cost / Income Ratio

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Contents

PagesPages


Financial Figures and Performance 6- 10

Risk ManagementRisk Management 1122-1-177Business Strategies & Current Strengths 19-22


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Management of Capital Adequacy

The Bank adopts conservative “risk indicators” which are approved by the Board of Directors, above the regulatory limits set by the national regulator.

Capital Adeqacy min 12 % (Risk Limit = Regulatory Limit) 13 % (Risk Indicator)

Tier I Ratio min 10 % (Risk Limit) 12 % (Risk Indicator)

Regulatory Risk Risk

Dec 09 Sep 09 Jun 09 Mar 09 Limit Limit Indicator

Capital Adequacy min 12% 12% 13% 16,30% 17,29% 16,83% 14,57%

Tier I Ratio min - 10% 12% 14,86% 15,80% 15,46% 13,25%

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Management of Credit Risk:Loan Portfolio Segmentation

*As of 31.12.2009

CUSTOMER SEGMENT TURNOVER CUSTOMER NUMBER

OUTSTANDING PORTFOLIO (million TL)

PERCENTAGE TO TOTAL PORTFOLIO

CORPORATE and COMMERCIAL

> TL 20 milion 3.074 1.476 %25.8

SME <TL 20 million >TL 150 K 18.887 2.376

%55.7 MICRO <TL 150 K 94.763 806

RETAIL 164.080 1.056 %18.5

TOTAL 280.804 5.714 %100

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NPLs are mostly in the corporate segment.Among 5,09 % corporate NPLs, there are 40 bulk files amounting TL 89.7 mio; secured by minimum100% tangible collateral.Without these bulk fully collateralized files, corporate NPL ratio is 3,5%

Management of Credit Risk:NPL Segmentation

As of 31.12.2009 (million TL) Gross Loans Gross NPLs% to Total Gross

LoansSME 3.182 62 1,09%

Corporate and Commercial 1.476 291 5,09%

Retail 1.056 49 0,86%

TOTAL 5.714 402 7,04%

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• The Bank adopts conservative “risk indicators” which are approved by the Board of Directors, above the regulatory limits set by the national regulator. • Compliance with those limits are monitored on a weekly basis, and evaluated during ALCO meetings.

Liquidity Adequacy (FC) min 80 % (Risk Limit = Regulatory Limit) 100 % (Risk Indicator)

Liquidity Adequacy (LC + FC) min 100 % (Risk Limit = Regulatory Limit) 120 % (Risk Indicator)

Management of Liquidity Adequacy

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A widespread as well as stable client base in deposits depicted by roll-over rates as high as 90 % lead to a “symmetric structure” with regards to the Bank’s aggregate cash flows:

Management of the Cash Flow Structure

As of 31.12.2009

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Contents

PagesPages




Business Strategies & Current StrengthsBusiness Strategies & Current Strengths 1199--2222National Presence and Participations 24-26

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Business Strategy Şekerbank finalized a five- year strategy plan with the contribution of a well knowninternational consulting company. The strategy is implemented since thebeginning of 2007. According to the strategy, the goal of the bank is to shift towardscustomer focused and effective sales process and plan the necessary infrastructure forsuccess.

• Target sectors

The Business Plan identifies the base of the strategy as “Community Banking with Commercial Focus”.

The outcome of this study that has been approved by the management and the Board, refers to the following business sectors as main focuses of the bank, to be supported by retail products;

- Small and Medium Companies in general through community banking approach- Construction - Food and agriculture - Tourism

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Business Strategy Community Banking

•Becoming a partner of growing SME’s•Providing simple and user friendly products•Reaching SME via TİM, KOSGEB and Universities

•Developing very Strong Deposit Base •Putting in Product Differentiation, and Cross Selling•Developing Retail Loans with a widespread customer portfolio

Custom

er intimacy / product excellence

Operational excellence

Construction

•Focusing more on housing projects

•Managing cash flows of projects

•Financing existing projects

•Decreasing construction loans to total loans, while increasing other sector loans

Food & Agri

•Creating a “Value Chain” from farmers to outlets

•Focusing on areas with growth potential

•Data based specialization & providing distinctive products designed for customer needs

• Pursuing close relations with Farmer Unions and other food organizations

Tourism

•Serving tourism establishments, financing renovation, capacity increase and working capital requirements

•Serving restaurants, bus companies, local tour operations

•Focusing on cultural, educational, health and winter tourism

Other Sectors

•Energy, Textile, IT, Logistics, Chemicals, Manufacturing

•Reaching sub sectors through the value chain of main sectors

SME

Retail

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Business Strategy

Sekerbank Sector %

113.650 1.228.646 9,25%94.763 999.604 9,48%

3.303 161.667 2,04%15.584 67.375 23,13%

Total Number of SME Customers

MicroSmall

Medium

Source: BRSA web page: http://ebulten.bddk.org.tr/AylikBulten/Basit.aspx

Sekerbank(million TL)

Sector(million TL)

3.182 83.2721 806 29.1982 216 22.0713 2.160 32.003

5.714 392.994

55,69% 21,19%

Total Loan Portfolio(SME+Commercial+Corporate+Retail)

Share of SME Portfolio toTotal Loan Portfolio

SME Loans , 31.12.2009

Total SME Loans (1+2+3)MicroSmall

Medium

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Growth Plan

(TL 000) 2007 2008 20092010

(Projected)

Cash Loans (Net) 3,614 4,800 4,906 6,477

Deposit 4,155 5,932 6,640 7,069

Total Assets 6,088 8,041 8,955 10,409

Securities 1,324 2,234 2,590 2,735

Shareholders Equity 865 975 1,249 1,452

Paid in Capital 400 400 500 500

Net Interest Income 439 627 715 720

Net Fees and Commission 91 94 103 125

Net Profit 123 144 152 170

ROE 14,21% 14,80% 13,71% 11,70%

ROA 2,02% 1,79% 1,79% 1,63%

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• Expertise and historical relationship with small enterprises nationwide.

• Sound risk diversification : As of 31.12.09

Average loan size of the commercial book ( Corporate+ SME +Small Micro&Agri) is TL 39,481.- with 116,724 commercial customers.Average loans size of SME and micro is TL 27,554 with 113,650 customersAverage loan size of the retail portfolio is TL 6,738.- with 164,080 retail customers.

• Well defined strategy and business plan for a sound SME focused growth and strong commitment thereto from both the shareholders and the staff

• Nationwide collection of utility bills, social security premiums and taxes

• 266 ATMs countrywide and 5 ATMs in Northern Cyrpus.

• Small and micro business application

Current Strengths

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Contents

PagesPages





National Presence and ParticipationsNational Presence and Participations 24-2624-26

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•260 branches across Turkey

•274 branches are targeted until year-end 2010

•Well-defined geographical coverage (70 cities and 80 major towns)

•11 Regional Offices: 2 in Istanbul, 9 in Anatolia

•Average presence of a branch over 25 years, qualifying “Şekerbank” as one of the most established and trusted banking brands

National Presence

Rank Banks Provinces* that are covered

1 İşbank 81

2 Akbank 763 ING /Garanti/ YKB 71

4 Şekerbank 70

7 Denizbank 60

8 Finansbank 52

9 HSBC 51

10TEB 49

11Fortis 44

12Anadolubank 22

13Tekstilbank 21

14Eurobank Tekfen 19

15Alternatifbank 15

* Turkey has currently 81 provinces

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Akdeniz Regional Office (21 Branches)

Doğu Anadolu Regional Office (13 Branches)

Karadeniz Regional Office (19 Branches)

Güneydoğu Anadolu Regional Office (26 Branches)

Cities without any branchMarmara Regional Office (29 Branches)

Ege Regional Office (28 Branches)

Ankara Regional Office (29 Branches)

Trakya Regional Office (22 Branches)

İstanbul Avrupa Regional Office (22 Branches)

İstanbul Anadolu Regional Office (22 Branches)

G.Hane

Trabzon

Adıyaman

Burdur

Tekirdağ

Nevşehir

İstanbul

ÇanakkaleBursa

İzmir

Aydın

Muğla

Denizli

Antalya

Eskişehir

Ankara

Konya

Karaman

İçel

Adana

Hatay

G.Antep

K.Maraş

KayseriMalatya

Diyarbakır

Samsun Ardahan

Kırıkkale

Manisa

Bingöl

Bitlis

HakkariMardin

Muş

Siirt

Ş.Urfa

Şırnak

Van

Bayburt

Giresun

KastomunuSinop

Zonguldak

Ağrı

Artvin

Erzincan

ErzurumIğdır

Kars

Amasya

Elazığ

Sivas

Tokat

Tunceli

ÇankırıOrdu

KırşehirKütahya

Uşak

Yozgat

Aksaray

Rize

Bilecik

Kırklareli

Balıkesir

Afyon

Isparta

Düzce1

Niğde

Çorum

G.Hane

Trabzon2

Adıyaman1Burdur

2

Tekirdağ3

Sak

arya

2

Nevşehir1

İstanbulAvrupa

22

Edirne3

Çanakkale2

BURSA8

İZMİR13

Aydın4

Muğla 3

Denizli2

ANTALYA9

Eskişehir3

Konya8

Karaman1

Mersin**4

Adana5

Hatay2

GAZİANTEP3

K.Maraş3

Kayseri5 Malatya

1Diyarbakır

1

SAMSUN3

Ardahan

Kırıkkale1

Manisa5

Bingöl

Bitlis

HakkariMardin

1

Muş

Siirt

Ş.Urfa1

Şırnak

Van1

Bayburt1

Giresun1

Kastamonu3

Sinop

Zonguldak2

Ağrı1

Artvin2

Erzincan1

ERZURUM1

Iğdır1

Kars1

Amasya2

Elazığ1

Sivas2

Tokat4

Tunceli

Çankırı1

Ordu3

Kırşehir1Kütahya

1

Uşak2

Yozgat1

Aksaray1

Rize1

Bilecik1

Kırklareli 4

Balıkesir5

Afyon**5

Isparta3

Bolu1

Niğde1

Çorum2

Bartın

Kocaeli2

Batman1

Kilis1

Osmaniye1

Karabük1

İstanbulAnadolu

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Trakya İstanbul*Branches 12

Regional Offices

Yalova1

Düzce1

İÇ ANADOLUBÖL. 29

İç Anadolu Regional Office (29 Branches)

Fethiye1

Muğla **4

ANKARA BÖLGE 29

Anamur1

SandıklıDinar

2

National Presence

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• Şeker Leasing (quoted on ISE) %46,56

Founded in 1997, headquartered in Istanbul and three liason offices

in Ankara, Bursa and İzmir.

• Şeker Factoring %84,99

Founded in 2000, member of Factors Chain International.

• Şeker Yatırım (Investment Banking) %99,04

Founded in 1997, all Şekerbank branches are agents to the Company

• Şekerbank Kıbrıs Ltd. %92,56• Şekerbank Off-shore Ltd.%74,30

Participations

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The information in this document has been obtained by Sekerbank T.A.Ş. (“Sekerbank”) from sources believed to be reliable, however, Sekerbank cannot guarantee the accuracy, completeness , or correctness of such information. This document has been issued for information purposes only. The financial reports and statements announced by Sekerbank to the public and the relevant corporations are accepted to be the sole material. Sekerbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents due to the misleading information in this document. All estimations contained in this document are the opinions of Sekerbank and can be subject to change without notice. This document can not be interpreted as an advice to the investors and Sekerbank can not be held responsible for the results of investment decisions made on account of this document. This document has been issued specially to the person, whom the document is concerned and may not be reproduced, distributed or shared with third parties for any purpose

Disclaimer Statement

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