Garanti: Pre-eminent Banking Franchise

Having a presence in all business lines including corporate, private, commercial, SME, retail and investment banking, Garanti operates as an integrated financial services company with its nine subsidiaries offering service in payment systems, pension, leasing, factoring, brokerage and asset management.

Selected Financials* (TL bn)	Dec 31, 2009	Dec 31, 2010	Growth
Assets	116.3	136.8	18%
Loans	53.5	70.2	31%
Securities	38	41	8%
Deposits	69	79	15%
Shareholders' Equity	14	17	22%
Net Fees and Commissions	1.8	2	3%
Net Income	3.1	3.4	10%

^*Based on BRSA Consolidated Financials

• #2 – Moved up in ranking with 24% average growth rate in assets over the past 5 years
• #1 – Turkey’s largest lender with 24% average growth rate in loans over the past 5 years
• #1 – Pre-eminent retail banking model with 22% average growth rate in consumer loans over the past 5 years
• #2 – Customer-focused, reliable, ally bank with 24% average growth rate in deposits over the past 5 years
• #3 – Solid capital base with 36% average growth rate in shareholders’ equity over the past 5 years
• #1 – Turkey’s most profitable private bank with 31% average growth rate in net income over the past 5 years

Garanti Bank is the second largest private bank in Turkey  with the significant market share in all business lines...

Garanti's Market Shares*	December 2010
Total Assets**	13.3%
Total Cash Loans	13.4%
TL Loans	10.7%
FC Loans	20.4%
Credit Cards - Issuing	20.1%
Credit Cards - Acquiring	21.4%
Consumer Loans	10.7%
Total Deposits	11.9%
Demand Deposits	13.0%
TL Deposits	10.3%
FC Deposits	15.6%
Mutual Funds	15.5%

*BRSA weekly data - Commercial Banks

**BRSA monthly data - Commercial Banks

Garanti: The Leading Bank in Turkey

Garanti with Numbers*	December 2010
Branch Network	863
+ Domestic	853
+ Abroad	10
Personnel	16,675
ATM	3,003
POS**	405,154
Total Customers	9,774,724
Internet Customers***	1,669,703
Telephone Banking Customers***	1,402,058
Credit Cards	8,004,359
Debit Cards	6,174,141

**Includes shared POS
***Active customers only - Those that login/call at least once per month

 

Extensive Distribution Network

• 863 branches covering 96% of Turkey
• > 3,000 ATM facilitating > 140 transactions
• Turkey’s Largest Financial Call Center with > 51 million customer contacts per year
• Leader in internet and mobile banking
• Leader in assets, loans and deposits per branch

Massive Payment Systems Infrastructure

• Leader in number of cards with > 14 million debit and credit cards
• Largest merchant network with > 405k POS terminals
• > 20% market share in issuing and acquiring volume Pioneer in payment systems
• Leader in spending per debit card: 2.5 times the sector
• Bonus: The largest card platform in Turkey with > 12 million credit cards

Pre-eminent Business Model with its specialized Subsidiaries

• Leader in bancassurance
• #2 in equity turnover in the ISE
• Leading position with TL 7.4 billion assets under management
• 1 out of 5 entrants to the pension system choose Garanti
• Leader with ~2,000 leasing contracts

Dynamic and competent human resource

• Effective team work of  ~17k employees
• ~90% of employees are university graduates 
• ~9 days training/year/employee
• ~5,000 innovative ideas collected from employees
• The first Turkish company to hold IIP silver certificate

Key Financials Ratios*

• 2.8% Return on Average Assets

• 22% Return on Average Equity

• 18.1% Capital Adequacy Ratio

• 3.1% Non-Performing Loans Ratio

*Based on BRSA Consolidated Financials as of December, 2010 

Key Financial Figures about Turkish Banking Sector*

(TLmn)	31-Dec-09	24-Sep-10	31-Dec-10	YTD Chg (%)
Total Deposits	504,776	565,106	610,896	21.0%
Bank Deposits	16,989	23,239	27,279	60.6%
Customer Deposits	487,788	541,868	583,617	19.6%
TL Deposits	324,548	374,516	411,187	26.7%
FC Deposits (US$mn)	109,768	114,636	112,624	2.6%
info: Customer Demand Deposits	74,955	78,990	91,439	22.0%
Total Loans	373,294	446,251	501,003	34.2%
TL Loans	268,319	322,765	357,284	33.2%
FC Loans (US$mn)	70,648	84,759	93,929	33.0%
Consumer Loans	90,813	113,001	125,335	38.0%
Housing	42,643	51,743	57,485	34.8%
Auto	4,215	4,450	5,368	27.4%
General Purpose Loans*	43,955	56,808	62,482	42.1%
Credit Cards	36,682	41,267	44,310	20.8%
Loans/Deposits	74.0%	79.0%	82.0%
Gross NPL	20,404	19,782	18,698	-8.4%
info: NPL ratio	5.2%	4.2%	3.6%
info: NPL coverage	84.5%	85.4%	85.9%
Gross NPL in cons. loans	3,945	3,728	3,584	-9.2%
info: NPL ratio	4.2%	3.2%	2.8%
Gross NPL in credit cards	4,222	4,090	3,743	-11.3%
info: NPL ratio	10.3%	9.0%	7.8%
F/X Position, net (US$mn)	376	1,564	109
on B/S	-12,736	-15,171	-14,785
off B/S	13,111	16,735	14,894

Source: BRSA weekly sector data, excluding participation banks

*Including other loans