ASYA

KATILIM

ANNUAL

BANKASI

REPORT

A.fi.

2007

Contents 1. Presentation • Financial Highlights 6 • Bank Asya in Brief 7 • History 8 • Changes in the Articles of Association during the Reporting Period 10 • Capital and Shareholding Structure and Changes during the Reporting Period 17 • Message on behalf of the Board of Directors 22 • CEO's Message 26 • The Turkish Economy and the Financial Sector 28 • Bank Asya's Activities in 2007 33 • Corporate and Commercial Banking 34 • SME Banking 36 • Retail Banking 37 • International Banking 40 • Quality Management System 42 • Research and Development Activities 43 • Information Technologies 44 • Corporate Communication and Publicity 45 • Bank Asya's Position in the Sector 47 • Subsidiaries and Affiliates 49 • Independent Auditor's Compliance Opinion on the Annual Report 51

2. Management and Corporate Government Practices • Board of Directors 55 • Audit Board 59 • Senior Management 61 • Organization Chart 64

• Committees 65 • Summarized Board of Directors Report 67 • Human Resources Practices 68 • Bank Asya's Risk Group 70 • Corporate Governance Principles Compliance Report 71 • Activities for which Support Services are Outsourced 78 • Our Bank's Profit Distribution Policy 78 • Matters Related to the General Assembly 79

3. Financial Information • Summarized Statutory Auditors' Report 82 • 5-Year Summary Financial Highlights 83 • Assessment of Financial Standing, Profitability, and Solvency 84 • Audit Committee's Assessment of the Operation of Internal Control Systems 85 • Risk Management Policies 86 • Bank Asya Ratings 88 • Independent Auditor's Report 91 • Financial Statements and Notes to the Financial Statements 95

4. Consolidated Independent Auditor's Report, Financial Statements and Notes to the Financial Statements • Consolidated Independent Auditor's Report, Financial Statements and Notes to the Financial Statements 173

5. Directory • Head Office and Branches 258

Asya Kat›l›m Bankas› A.fi.

Presentation

Financial Highlights Key Financial Figures 2007

2006

Change

(TRY thousand)

(TRY thousand)

(%)

Total Assets

6,260,048

4,179,189

50

Total Cash Loans

4,609,665

3,060,181

51

Deposits

4,697,750

3,200,655

47

Shareholders' Equity

853,856

632,519

35

Paid-in Capital

300,000

300,000

0

Net Profit

221,337

146,351

51

7,449,861

6,260,610

19

2007

2006

Change

(Unit)

(Unit)

(%)

118

92

28

3,300

2,365

40

2007

2006

(%)

(%)

Loans/Total Assets

74

73

Deposits/Total Assets

75

77

Cash Loans/Deposits

98

96

Return on Equity (ROE)

30

32

Return on Assets (ROA)

4

4

Capital Adequacy Ratio

14.87

18.09

Non-cash Loans

Information on Branches and Personnel

Number of Branches Number of Employees

Key Financial Ratios

BANK ASYA ANNUAL REPORT 2007

6

Bank Asya in Brief Founded in 1996 as Asya Finans Kurumu A.fi., Turkey's

same time increasing and diversifying its alternative

sixth private finance house, Bank Asya soon gained a

delivery distribution so as to ensure that access to those

respected position in the banking and financial services

products and services is as convenient as possible.

sector thanks to its robust capitalization, strong profitability, solid funding, and high-quality service. Since

Bank Asya maintains two basic approaches as being

its establishment, Bank Asya has always maintained a

essential to its own growth and to its ability to achieve

multi-shareholder structure based on domestic capital.

the market share it has targeted. The Bank produces

In May 2006 the company offered 23% of its shares in

every possible effort to achieve these aims:

an initial public offering that attracted record-breaking interest, and raised the bank's paid-in capital to reach

• Further develop interest-free banking products and

TRY 300 million. In this process, Bank Asya became

create new alternative products based on them.

Turkey's first participation bank to go public.

• Adapt products that are actively used in conventional banking to the interest-free banking system.

Being Turkey's youngest bank, Bank Asya has rapidly achieved stable and profitable growth. By the end of

Identifying its working principles, mission and vision with

2007, the bank was serving customers through its head

voluntary participation of its personnel, Bank Asya has

office units and 118 branches, as well as through two

made its employees the key elements of its corporate

correspondent banks in Turkey and more than 1,000

culture as a product of sharing and believing in success.

correspondents world-wide.

Mission Bank Asya was founded on the fundamental principle

To contribute to the well-being of its

of supporting production while complying with the

stakeholders and to the Turkish economy by

requirements of interest-free banking. Its goal is to

developing modern banking services within

promote the interest-free finance system to a position where it is accessible to a wider audience, taking its customer-focused approach to service as its point of departure and employing all the advantages that modern

the framework of the principles of interest-free banking and to satisfy customers' needs and expectations with a “different solutions for

technology makes available.

different expectations” approach.

The first participation bank in Turkey to be awarded ISO

Vision

9001-2000 Quality Management System certification,

To be a respected, trusted, and effective

Bank Asya continuously develops its products and

participation bank that provides service to global

services to satisfy the ever changing needs and expectations of its retail, corporate, and commercial customers in the best possible manner, while at the

quality standards through the products that it develops.

BANK ASYA ANNUAL REPORT 2007

7

History

1996

• Entered operation on 24 October under the name “Asya Finans Kurumu A.fi.” at its Head Office in Altunizade, Istanbul with an establishment capital of TRY 2 million.

1997

• The number of branch offices reached 15.

1998

• The number of branch offices increased to 16. • The Asya Finans credit card was offered to customers. • The online correspondent banking relationship was established with all branches of Yap› Kredi Bank.

1999

• The Bank became subject to the Turkish Banking Law. • The paid-in capital of the Bank was increased to TRY 10 million.

2000

• Asya Finans Internet Branch was launched. The total number of branches reached 25.

2001

• The Private Finance Houses Association was founded and a special Security Fund was created to guarantee collected funds. • The Regulation on the Foundation and Activities of Private Finance Houses entered effect on September 20. • The Bank's paid-in capital was raised to TRY 20 million.

2002

• The number of Asya Finans branch offices reached 28. • Installment credit cards and ASYA24 ATMs were introduced. • The paid-in capital of the Bank was increased to TRY 40 million. • The Regulation on the Security Fund for the Special Current and Participation Accounts of Private Finance Houses entered effect on September 18.

2003

• The number of branch offices reached 43. • Tax collecting authorization was granted by the Ministry of Finance. • The Bank's paid-in capital was raised to TRY 60 million. • Asya Finans clients could complete credit card payments and money transfers through online PTT branches nationwide. • Asya Finans became a principal member of VISA International on October 24.

BANK ASYA ANNUAL REPORT 2007

8

2004

• The “Alo Asya” Phone Banking services (444 0 888) for retail customers was introduced on January 9 and for corporate customers on March 17. • The number of head office units was raised to 24, developing the organization structure of the General Directorate. • Asya Finans clients gained access to more than 2,400 nationwide ATMs through the Bank's membership of Joint Point (Ortak Nokta). • The paid-in capital of the Bank was increased to TRY 120 million in October. • The addition of new branch offices brought the total number up to 62.

2005

• The Bank's paid-in capital was increased to TRY 240 million in October. • In November, new regulations introduced in the Banking Act transformed private finance houses into participation banks. • The security fund was assigned to the SDIF (Savings Deposit Insurance Fund). • New branch offices were added, bringing the total number up to 72. • The title “Asya Finans Kurumu A.fi.” was changed to “Asya Kat›l›m Bankas› A.fi.” on December 27, in accordance with a decision reached at the Extraordinary General Assembly Meeting held in Istanbul on December 22. It was resolved that the Bank would carry out its operations under the “Bank Asya” brand name

2006

• Bank Asya floated 23% of its shares in a public offering in May, which attracted record-breaking interest and brought the Bank's paid-in capital up from TRY 240 million to TRY 300 million. The Bank's shares began to trade on the Istanbul Stock Exchange on May 12, 2006 under the ASYAB ticker symbol; in the course of the year they were added to the ISE-50 index as one of the top 50 most heavily traded shares on the exchange. Bank Asya's shares joined the ISE-30 index in January 2007. • Celebrating its 10th year in business, Bank Asya registered a 27% YoY rate of growth in 2006, while new branches brought the total number of branches in the bank network up to 92.

2007

• A total of 26 new branch offices were opened, raising the total number up to 118. • The new head office building in Ümraniye entered operation on October 1.

BANK ASYA ANNUAL REPORT 2007

9

Changes in the Articles of Association during the Reporting Period INCORPORATION ARTICLE 1: A joint stock company is incorporated to operate as a private financial institution by the following founding shareholders under the Decree No. 83/7506 dated 16/12/1983 of the Council of Ministers and published in issue no. 18256 of the Official Gazette dated 19/12/1983, in compliance with the provisions of the Turkish Commercial Code governing instantaneous incorporation of joint stock companies, and the founded joint stock company was then transformed into a Participation Bank in accordance with the Banking Law no. 5411, dated 19/10/2005.

No Name/Surname

Nationality

1 TAHS‹N TEKO⁄LU

Turkish

COMPANY NAME ARTICLE 2: (*) The commercial title of the Company is ASYA KATILIM BANKASI ANON‹M fi‹RKET‹, hereinafter referred to as “Company”. The business name of the company, in short, is “Bank Asya” in accordance with Article 55 of the Turkish Commercial Code. FOUNDERS ARTICLE 3: (*) The names, nationalities and residence addresses of the founders are listed below:

Address Zümrüt Yuva Mah. Vali Kona¤› Cad. No: 5 FLORYA/ ‹STANBUL

2 ABDURRAHMAN SELÇUK BERKSAN Turkish

Özbek Süleyman Efendi Sok. No: 4/7 FINDIKZADE/‹STANBUL

3 MEHMET EM‹N HASIRCILAR

Turkish

M. Nesih Özmen Mah. Kas›m Sok. No: 49/1 GÜNGÖREN/‹STANBUL

4 AL‹ RIZA TANRISEVEN

Turkish

Gümüflpala Londra Asfalt› No: 56 AVCILAR/‹STANBUL

5 MUSTAFA FIRAT

Turkish

Süleymaniye Mah. Kirazl› Mescit Sok. No: 18 EM‹NÖNÜ/‹STANBUL

6 TACETT‹N NEG‹fi

Turkish

fienlikköy Mah. Avc›lar Sok. No: 42 FLORYA/‹STANBUL

7 BEYHAN NAK‹BO⁄LU

Turkish

Yeflilköy Mah. Halkal› Cad. No: 1/2 ‹STANBUL

8 CAH‹T fiAH‹N

Turkish

Deniz Köflkler Mah. Zafer Cad. No: 22/1 AVCILAR/‹STANBUL

9 HÜSEY‹N DO⁄ME

Turkish

Yeflilköy Mah. Bahaniler Sok. No: 28/5 ‹STANBUL

10 ÖMER FARUK BERKSAN

Turkish

Saruhan Sok. Erberk Apt. No: 4/5 FLORYA/‹STANBUL

11 TURGUT AYDIN

Turkish

Caddebostan Plaj Yolu Durukan Apt. No: 25/3 MAÇKA/TRABZON

12 SADIK P‹fiAN

Turkish

Yazmac› Tahir Sok. Polat Sit. A Blok No: 40/25 BEYO⁄LU/‹STANBUL

13 M. ‹HSAN KALKAVAN

Turkish

Cevdetpafla Cad. Sefa Apt. No: 146/3 KADIKÖY/‹STANBUL

14 MUSTAFA fiEVK‹ KAVURMACI

Turkish

Darüflflafaka Cad. No: 50/4 FAT‹H/‹STANBUL

15 OSMAN GÜRBÜZ ÖZKARA

Turkish

Mithatpafla Cad. No: 1002/8 GÖZTEPE/‹STANBUL

16 NAC‹ ALTUNBÜKEN

Turkish

Cemil Topuzlu Cad. Enön Apt. No: 27/4 SELAM‹ÇEfiME/‹STANBUL

BANK ASYA ANNUAL REPORT 2007

10

SUBJECT-MATTER AND OBJECTIVES OF THE COMPANY ARTICLE 4: The subject matter and objectives of the Company are to contribute to the saving accumulation, the utilization of such savings in areas needed by the economy and to fulfill all activities falling under the scope of participation banking in line with the requirements of contemporary banking, within the limits stated by the Banking Law, currently in force, the Law that will enter force in due course, and related Decree Laws. BUSINESS OF THE COMPANY ARTICLE 5: The Company may fulfill the following business in the fields stated in the articles of association within the authorizations issued by the Banking Regulatory and Auditing Authority and relevant institutes: 1. Accepting participation funds. 2. Lending loans of cash, non-cash and of any other type. 3. Any and all payment and collection transactions including but not limited to cash or deposit based payments and fund transfers, correspondent banking and use of check accounts. 4. Negotiation of checks and other negotiable instruments. 5. Safe custody services. 6. Issuing payment instruments such as credit cards, banking cards and travel checks and fulfilling related transactions. 7. Fulfilling all export and import procedures, including exchange transactions; purchase and sale of money market instruments; purchase and sale of precious metals and stones and providing safe custody services for these items. 8. Undertaking the purchase and sale, either directly or as a broker, for futures agreements, option agreements, simple and mixed financial instruments containing more than one financial derivative instrument based on the economic and financial

indicators, capital market instruments, commodities, precious metals and foreign currency. 9. Undertaking the purchase and sale of capital market instruments, and engaging in resale and repurchase contracting procedures. 10. Brokering for the sale of capital market instruments by issuing such instruments or via public offering. 11. Undertaking the purchase and sale of issued capital market instruments for brokering purposes. 12. Acting as a guarantor or undertaking similar obligations in favor of third parties. 13. Engaging in investment advisory services. 14. Providing portfolio operating and management services. 15. Building capital for purchase and sale transactions in accordance with the obligations undertaken under a contract made between the Undersecretariat Treasury and/or Central Bank and professional associations. 16. Factoring and forfeiting transactions. 17. Financial leasing transactions. 18. Providing insurance agency and individual retirement brokering services. 19. Participating in banks or other companies at home or abroad, founding consortium or participating in those already founded. 20. Borrowing funds in return for securities by offering the assets of the company as collateral in compliance with relevant legislation. 21. Appointing trusts, or being appointed as a trust, also providing any service as a receiver or attorney, 22. The purchase, renting, acquisition, sale, transfer or renting out of any tangible or intangible real estate and personal properties and any definite, contingent, temporary or other rights, title or privileges in any way or administrate the same in the favor of the company in part or in whole or developing them or establishing rights thereon, whenever required by the business of the Company, 23. The purchasing, owning, renting out, leasing, operating and selling of vessels, machinery,

BANK ASYA ANNUAL REPORT 2007

11

equipment and facilities and establishing companies, warehouses and stores to realize these objectives and to store any commodities. 24. Obtaining, acquiring, selling or transferring in part or in whole, using, developing, creating and benefiting in any similar manner from the patent, brand, patent letter, license, know-how, copyright, commercial names and similar technical and industrial rights for the realization of the Company's objectives. 25. Entering any arrangement and agreement with official authorities which is necessary to ensure that the Company is able to realize its objectives in accordance with the related legislation. 26. Opening and operating branches, offices and liaison offices and establishing subsidiaries at home or abroad. 27. Performing any business, procedure or action that may be beneficial or may support the Company's objectives in part or in whole, in accordance with the related legislation. 28. Establishing pledges, mortgages and similar real and personal rights in favor of the Company regarding land and personal properties owned by third parties, or releasing them if its business requires. 29. Other activities to be determined by the Banking Regulatory and Auditing Authority. The Company will not fulfill activities prohibited by the Banking Law, the Capital Market Law and related regulations for participation banks and those activities for which the necessary authorization or consent cannot be obtained from the related authorities, or those activities which are prohibited by the other legislation or regulations which pertain to participation banks. DURATION ARTICLE 7: The Company is incorporated in perpetuity from the date of its registration. Subject to the provisions of the Banking Law and Turkish Commercial Code on

BANK ASYA ANNUAL REPORT 2007

12

dissolution, liquidation and termination, the Annual General Meeting of Shareholders is authorized to determine, limit or decrease the duration of the Company. TRANSFER OF SHARES ARTICLE 11: The transfer of the Group (A) shares, all of which are registered, is subject to the approval of the Board of Directors. The Board of Directors may at its sole discretion reject the share transfers without stipulating any reason or may accept or approve on such conditions and procedures as it deems fit. No share transfer is valid for the Company unless it is registered in the stock register. Group (B) shares, all of which are also registered, may be transferred in accordance with the provisions of the Turkish Commercial Code, the Capital Market Law and Central Registration Agency, without requiring the approval of the Board of Directors. Any share transfer requiring a prior permit from the Banking Regulatory and Supervisory Agency, in pursuance with the Banking Law, will only be valid after the permit has been obtained. No share transfer shall be registered in the stock register until the necessary permit has been obtained. Any shareholder acquiring any share in the Company without obtaining the required permit from the Authority cannot benefit from shareholding rights, apart from dividends. AUTHORIZED CORPORATE BODIES ARTICLE 17: The authorized bodies of the company are as listed below: A. General Meeting of the Shareholders B. Board of Directors C. Auditing Board D. Loan Committee E. Auditing Committee

F. Corporate Management Committee G. Assets and Liabilities Committee H. General Manager A. GENERAL MEETING ORDINARY AND EXTRAORDINARY GENERAL MEETINGS ARTICLE 18: The General Meeting of Shareholders shall convene Ordinarily and/or Extraordinarily. The ordinary General Meeting of Shareholders shall be held at least once a year and within (3) three months of the end of the preceding fiscal year. In these meetings, the required items stated in article 369 of the Turkish Commercial Code are discussed and resolved. Extraordinary general meetings may be held at any time deemed necessary in the course of the Company business, in accordance with the provisions of the Turkish Commercial Code and Capital Market Law. The Board of Directors is obliged to ensure that the General Meetings are held in accordance with the legal procedures and rules. Any amendments to these Articles which breach the rights of Group (A) shareholders to nominate candidates to the Board of Directors or the Auditing Board, and resolutions set forth in the General Meeting regarding any capital increase, shall not be valid unless a resolution is drawn up by a special meeting of the Group (A) shareholders in addition to the resolution put forth in the General Meeting. The special meeting shall be held after the General Meeting, but before the registration of the said amendment to the Articles. In the events when a meeting of the Group (A) shareholders is mandatory, the meeting shall be called by the Board of Directors or any auditor. Any Group (A) shareholder may call the meeting if neither the Board of Directors nor any auditor calls such a meeting.

At the meeting of Group (A) shareholders, apart from conditions stated in this Article, the provisions of the related laws and provisions of these Articles regarding the General Meeting shall apply as mutatis mutandis. AGENDA ARTICLE 21: The inclusion of the agenda in the announcement and invitation letters of the General Meeting of Shareholders is mandatory. The agenda shall contain the items stated in the Article 369 of the Turkish Commercial Code and the Capital Market Board. Any item not stated in the agenda cannot be discussed or resolved during the General Meeting. VENUE OF GENERAL MEETING ARTICLE 22: (*) The General Meeting is held at the principal office of the Company or in another place within the city where the principal office is located. DUTIES AND POWERS OF THE BOARD OF DIRECTORS ARTICLE 35: (**) The duties and powers of the Board of Directors are subject to the provisions of the Turkish Commercial Code, Banking Law, Capital Market Law and other related laws and regulations and to these articles. The Board of Directors can resolve on any matter not requiring a resolution of the General Meeting of Shareholders. The Board of Directors authorized to resolve the following matters in particular: a) To prepare and approve internal regulations pertaining to the internal affairs of the Company, to set out the actions to be taken by the General Manager, and those measures to be taken with resolutions taken by the Board of Directors and Loan Committee.

BANK ASYA ANNUAL REPORT 2007

13

b) To check any necessary matter and supervise daily administrative activities at all times (members of the Board of Directors can gain this right through a resolution set out by the Board of Directors), c) To prepare annual balance sheets, Profit/Loss statements, submit reports on annual operations and proposals on profit distribution to the General Meeting of Shareholders, determine the cash status and organize the guarantees in pursuance with the related laws and complete auditing reports available for inspection 15 days prior to the general meeting of shareholders, d) To determine the manner of all procedures related to the objectives of the incorporation of the Company, e) To determine the appointment, promotion, dismissal, annual salary and expenses of the authorized signatories, General Manager, and in particular those directly reporting to the General Manager and other key personnel, f) To authorize the establishment of branches, offices, liaison offices and district offices, and set out the powers to be delegated to them, in accordance with related legislation, g) To determine the principles regarding real estate to be purchased or sold in the name of the Company, h) To perform the duties stated by the Turkish Commercial Code and related laws, and those duties other than those specifically provided to the General Meeting of Shareholders or auditors by the said laws and these Articles. i) If necessary, the Board of Directors may delegate its power to represent and manage to any one or more Directors or managers or any committee established by them for such period, under such conditions and manner as determined by the Board of Directors in accordance with the Article 319 of the Turkish Commercial Code. j) The power of granting a loan may only be used by the Board of Directors. The Board of Directors is obliged to determine policies on the granting a loan, the approval of a loan and other related administrative procedures, and to work to ensure the implementation of such policies and to take action where necessary. The Board of Directors may, however, delegate its power to grant a

BANK ASYA ANNUAL REPORT 2007

14

loan to a loan committee or general manager in accordance with the procedures and principles to be determined by the Board of Directors. RESOLUTION BOOK ARTICLE 40: The resolutions of the Board of Directors shall be recorded in a notebook on the same day, without leaving any space or inserting any additions between resolutions or lines. Resolutions will be listed in sequence of date and number, in compliance with the provisions of the Turkish Commercial Code governing the resolution books, having certified pages with page numbers. Each resolution shall be undersigned by the Directors within a period of 1 month. If required by the Board of Directors, a second copy of the resolution books may also be kept in a foreign language, which would not constitute a legal document. C. MANAGEMENT AND AUDITING COMMITTEES ARTICLE 46: LOAN COMMITTEE: The Board of Directors will elect a Loan Committee consisting of a minimum of two Directors having the qualifications required for the general manager and the general manager of the bank or his/her deputy. The Loan Committee shall perform the instructions of the Board of Directors on activities pertaining to loans. In the event that any member of the Loan Committee cannot participate in the meeting, two substitute members, who possess the qualifications required for the general manager, shall be elected among the Directors to substitute for the absent members. The election of the members and substitute members to the Loan Committee requires the vote of at least three-quarters of the members of the Board of Directors. Resolutions drawn up by the Loan Committee shall be implemented directly if they are resolved unanimously,

or later approved by the Board of Directors if resolved by a majority vote.

aimed at the improvement and proposing suggestions to this end to the Board of Directors.

The Board of Directors is obliged and authorized to audit the resolutions and activities of the Loan Committee. The Chairman, Deputy Chairman and any member of the Board of Directors are each authorized to request information regarding the activities of the Loan Committee, and to undertake any audit that they deem necessary.

Members of the Corporate Management Committee are appointed by the Board of Directors. Those members whose tenure expires may be re-elected. Independent members lose their independence in the event of working for 7 subsequent years. However, they may be appointed as independent members again after 2 years.

The working procedures of the Loan Committee will be conducted in accordance with the principles and procedures to be determined by the Banking Regulatory and Auditing Board.

ASSETS AND LIABILITIES COMMITTEE The Assets and Liabilities Committee convenes on a weekly basis with the participation of the Assistant General Managers and related Unit Managers, as chaired by the General Manager. The Committee is responsible for determining the Company's asset and liability structure.

The resolutions of the Loan Committee are registered in the resolution book. The resolution book of the Loan Committee shall be maintained according to the same principles and procedures which apply to the resolution book of the Board of Directors. AUDITING COMMITTEE The auditing committee shall be responsible for auditing the accounting system and the financial data and disclosure of such data to the public, and the supervision of the operation and efficiency of the Company's internal control system, and for taking all necessary measures. The auditing committee is comprised of at least two members. Members of the auditing committee are elected among the Directors who have no executive activities. The working procedures of the Auditing Committee are conducted in compliance with the Banking Law and the principles and procedures to be determined by the Banking Regulatory and Auditing Authority. CORPORATE MANAGEMENT COMMITTEE The Corporate Management Committee is responsible for monitoring the compliance of the Company with the Corporate Management Principles, effecting measures

D. GENERAL MANAGER ARTICLE 47: The General Manager of the Company may either be appointed from among the Directors, or an outsider. The General Manager or assistant general managers may not work in another business organization on a fulltime or part-time basis with the exception of partnerships subject to consolidated auditing. The General Manager, who is not necessarily a shareholder, must have the qualifications stated in the Banking Law. The daily management of the Company is carried out by the General Manager in accordance with the Turkish Commercial Code, Banking Law, Capital Market Law and these Articles and the rules to be set out by the Board of Directors. AUDITING BOARD ARTICLE 49: (*) The Auditing Board shall comprise of three members to be elected during the General Meeting and these members shall be selected among candidates nominated by a minimum of 51% of the total votes of the Group (A) shareholders present at that meeting. The Auditors,

BANK ASYA ANNUAL REPORT 2007

15

of whom at least two shall be Turkish nationals, shall be persons who are informed and experienced in the fields of finance, economics, law or accounting. The Auditors shall report to the General Meeting of Shareholders by writing any matter that they find contrary to the laws and these Articles. The Auditors shall be elected for three years. Any Auditor whose term of duty ends may be reelected. The General Meeting of Shareholders may dismiss or replace any Auditor at any time. Directors cannot be elected as Auditors unless they are authorized in the General Meeting. The Auditors may not act as a Director or clerk of the Company for the period they are acting as an auditor. DISTRIBUTION OF PROFIT ARTICLE 54: (**) The net profit of the Company is the balance remaining after deducting all paid or accrued expenses, depreciation and various provisions from the income determined at the end of the fiscal year. After deducting the retained losses from previous years, the net profit, if any, is distributed in the order shown below: 1. 5% of the net profit is appropriated to the mandatory reserves (Article 466/1 of the Turkish Commercial Code). 2. Out of the remainder, the first dividend is determined according to the rate and amount determined by the Capital Market Board. 3. From the remainder: - an amount up to 2% is appropriated to the Directors and - an amount up to 5% is appropriated to the Managers and Staff 4. After determining and appropriating the amounts stated in the subparagraphs (1), (2) and (3) of this Article, the shareholders participating in the General Meeting of Shareholders are authorized to transfer the all or some part of the net profit to the next year or to appropriate

BANK ASYA ANNUAL REPORT 2007

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the amount as an extraordinary reserve. The Board of Directors may propose a motion for this purpose if it deems it necessary. (The provisions Article 466/3 of the Turkish Commercial Code are reserved) 5. Subject to the related provisions of the Capital Market Law, shareholders participating in the General Meeting of Shareholders are authorized to distribute the all or part of the remaining profit to the shareholders in the following manner or to appropriate it as extraordinary reserves: a) Distributing completely in cash, b) Distributing completely in share, c) Distributing some in cash, some in shares and retaining the balance in the Company, d) Retaining it in the Company without distributing in cash or in share. The Board of Directors may propose a motion to the General Meeting of Shareholders on this matter if it deems necessary. The date of payment of the dividends to be paid under this Article shall be determined by the Board of Directors. ANNOUNCEMENTS ARTICLE 61: Subject to the provisions of Paragraph 4 of Article 37 of the Turkish Commercial Code, announcements concerning the Company shall be made in a national newspaper published in the place of the principal office at least fifteen days prior to the meeting day. Subject to Article 368 of the Turkish Commercial Code, announcements made in relation to the decrease of capital and dissolution shall be made in accordance with the Articles 397 and 438 of the Turkish Commercial Code, respectively. Announcements made in pursuance with the Capital Market Law and Banking Law, shall meet the requirements of the related laws and regulations.

Capital and Shareholding Structure and Changes during the Reporting Period Our Bank has a broadly-based multi-shareholder structure based on domestic capital. At the end of 2007, there were 246 shareholders (not including those who held publicly-traded stock). The table below illustrates the Bank's shareholder structures at the beginning of 2007 and at year-end 2007. Beginning of 2007

%

Year-end 2007

%

A Group (Privileged Shares)

120,000,000

40.00

120,000,000 4

0.00

B Group (Listed on the ISE)

75,993,736

25.33

49,465,597

16.49

B Group (Not listed on the ISE)

104,006,264

34.67

130,534,403

43.51

Total

300,000,000

100

300,000,000

100

A total of 103 of our existing shareholders applied to the Central Registry Agency during 2007 to sell unlisted Group B shares, of a total nominal value of TRY 26,528,139, on the ISE. Shares Held by the Chairman and Members of the Board of Directors, by the CEO, and by Executive Vice Presidents Information regarding the shares owned by our Bank's chairman, board members, CEO, and executive vice presidents, according to our Bank's Shareholders Register as of December 31, 2007 are provided in the table below. Title

Name Surname

Chairman

TAHS‹N TEKO⁄LU

0.0003

Board Members

MUSTAFA fiEVK‹ KAVURMACI

0.2317

ABDURRAHMAN SELÇUK BERKSAN

0.0025

SAL‹H SARIGÜL

0.4867

TACETT‹N NEG‹fi

0.8833

CEM‹L ÖZDEM‹R

0.0003

CEO

ÜNAL KABACA

0.0209

Executive Vice Presidents

ÜNSAL SÖZB‹R

-

AYHAN KESER

-

MUSTAFA BÜYÜKATEfi

-

YUSUF ‹ZZETT‹N ‹MRE

-

Statutory Auditors

Share in the Bank (%)

AL‹ AKBULUT

0.0002

AHMET ÇEL‹K

0.4467

ATIF B‹LG‹N

0.2667

BANK ASYA ANNUAL REPORT 2007

17

Shareholders Holding Preferred Shares and Their Shareholding Interests Holders of Group A shares, who have the right to designate candidates to be elected as board members and statutory auditors under articles 32 and 49 of our articles of association, who were registered in the Bank's Shareholders Register as of December 31, 2007, are provided in the table below.

No

Name

Share in the Bank

No

Name

(%)

1

MELTEM TUR‹ZM ‹Nfi. T‹C. A.fi.

2

KARAKAYA YEDEK PARÇA

0.0315

VE OTOMOT‹V SAN. T‹C. LTD. fiT‹. 3

KOÇKAYA MOTORLU ARAÇLAR SAN. VE T‹C. A.fi.

4

0.0449 0.0656

L‹NATEKS TEKST‹L ‹THALAT

Share in the Bank (%)

22 ZEK‹ MURAT AKHAN

0.0461

23 AL‹ AKIN

0.3404

24 ADNAN AKSOYLAR

0.1731

25 EROL AKTÜRK

0.0750

26 FEH‹M ARICI

1.5500

27 MUSTAFA ATÇI

0.0044

‹HRACAT SAN. T‹C. LTD. fiT‹.

0.2500

28 AYDAN SA⁄LIK

1.6533

5

VER‹M PLAST‹K ‹TH. MAD. A.fi.

0.4167

29 ERDAL BABADA⁄

0.0193

6

GALAKS‹ ‹NfiAAT TEK. SAN. A.fi.

0.5000

30 RECEP BAHT‹YAR

0.0500

7

TEKSEN TEKST‹L END. A.fi.

1.3093

31 NÜSRET BARIfi

0.0167

8

FORUM ‹NfiAAT DEKORASYON

32 ZÜBEY‹R BARIfi

0.0500

33 Z‹YA BAfiCI

0.0333

34 AR‹F BAfiO⁄LU

0.0750

35 AHMET BAfiO⁄LU

0.2075

36 TUNCAY BAYDAK

0.0500

TUR‹ZM SAN. VE T‹C. A.fi. 9

4.1242

NEG‹fi G‹Y‹M ‹MALAT VE ‹HRACAT A.fi.

4.3450

10 B‹R‹M B‹RLEfi‹K ‹NfiAATÇILIK MÜMESS‹LL‹K SAN. VE T‹C. A.fi.

4.9398

37 MEHMET EM‹N BAYRAM

0.0500

11 BJ TEKST‹L T‹CARET VE SANAY‹ A.fi.

5.0000

38 MUSTAFA B‹LG‹N

0.0500

12 ORTADO⁄U TEKST‹L T‹C. SAN. A.fi.

9.4367

39 ATIF B‹LG‹N

0.5000

13 IfiIL ABAY

0.3717

40 EL‹F B‹LG‹NO⁄LU

0.3717

14 ADEM ACAR

0.2417

41 AYfiE ‹FAKAT B‹LG‹NO⁄LU

0.3783

15 LUTF‹ ACET

0.0243

42 FARUK B‹LG‹NO⁄LU

0.3783

16 KAZIM AFfiAR

0.4250

43 ÖMER B‹LG‹NO⁄LU

0.5575

17 YALÇIN AKARSU

0.1517

44 RIFAT B‹LG‹NO⁄LU

0.5575

18 MUSTAFA AKBULUT

0.0333

45 NUR B‹LG‹NO⁄LU ANAÇ

0.3717

19 AL‹ AKÇAY

0.0263

46 AL‹ ‹HSAN BOSTAN

0.5033

20 MEHMET AKÇAY

0.0438

47 AYKUT BÜYÜKEKfi‹

0.2500

21 AHMET AKGÜL

0.0258

48 YAVUZ CAN‹KL‹

0.4375

BANK ASYA ANNUAL REPORT 2007

18

No

Name

Share in the Bank

No

Name

Share in the Bank

(%)

(%)

49 MUSTAFA CEMALO⁄LU

0.5000

83 KEMAL EL‹BAL

50 KAD‹R CEYLAN

0.0667

84 YALÇIN ERCAN

0.1083

51 HAL‹L ‹BRAH‹M CEYLAN

0.2500

85 YAVUZ ERO⁄LU

1.4500

52 MEHMET COfiKUN

0.1933

86 MEHMET fiEVK‹ EROL

0.1583

53 HAKKI COfiKUN

0.1933

87 AVN‹ ERTANSEL

0.0500

54 HAD‹ ÇAKAR

0.1000

88 MEHMET FAY‹K ESEN

0.0500

55 SAD‹ ÇAKAR

0.1000

89 SABR‹ ESEN

0.0500

56 MUSTAFA ÇAKAR

0.1250

90 AHMET EVC‹

0.1000

57 ABDURRAHMAN ÇAKAR

0.1250

91 M, ABDULCEBBAR EZG‹N

0.1000

58 fiERAFETT‹N ÇAKAR

0.1250

92 MEMET fiRAT

0.1850

59 ‹BRAH‹M ÇAKIR

0.0500

93 MEHMET GÜLEN

0.2013

60 AHMET HAMD‹ ÇAKMAZ

0.2013

94 YUSUF GÜLEN

0.2013

61 MUSTAFA ÇEL‹K

0.0025

95 ‹LHAM‹ GÜLEN

0.2013

62 AHMET ÇEL‹K

0.0500

96 AL‹ GÜLEN

0.2013

63 HÜSEY‹N ÇEL‹K

0.2500

97 SADIK GÜLEN

0.2013

64 AHMET ÇEL‹K

0.5083

98 FA‹K GÜN

0.0500

65 SAFFET ÇERÇ‹

0.2000

99 RIDVAN GÜNGÖR

0.0500

66 DO⁄AN ÇET‹N

0.0500

100 CEM‹L GURLERO⁄LU

0.0500

67 CENG‹Z ÇIRAK

0.0508

101 FEVZ‹ GÜRSES

0.0003

68 ‹SMA‹L CEM Ç‹TAK

0.0462

102 HÜSEY‹N GÜZEL

0.0875

69 CAH‹T DE⁄ERL‹

0.0325

103 ‹RFAN HACIOSMANO⁄LU

1.9058

70 MUSTAFA DEM‹R

0.0500

104 MEHMET EM‹N HASIRCILAR

0.2308

71 YÜKSEL DEM‹RC‹

0.0500

105 DERV‹fi ‹NCE

0.0500

72 ZEK‹ DEM‹RTAfi

0.2500

106 MAKBULE KADIO⁄LU

0.1833

73 KAM‹L DERE

0.0300

107 MEHMET KAFARCI

0.5000

74 N‹YAZ‹ DERE

0.0656

108 MEVLÜT KAKLIK

0.2000

75 ETHEM D‹ZDAR

0.0500

109 CEMAL KALAFAT

0.0500

76 MEHMET SEM‹H DO⁄AN

0.1000

110 ERHAN KALAYCI

0.0250

77 HÜSEY‹N DU⁄RAL

0.0167

111 AYHAN KALAYCI

0.0250

78 MUSTAFA DU⁄RAL

0.2567

112 MUAMMER ‹HSAN KALKAVAN

2.0712

79 NUR‹ DUMAN

0.4548

113 KAM‹L KANDEM‹R

0.0131

80 YUSUF DURMUfi

0.0500

114 MEHMET EM‹N KARA

0.2000

81 SONER EKEN

0.0500

115 MÜYESSER KARADAYI

1.0058

82 MEHMET ELDEM

0.0331

116 GÜLSÜM BETÜL KARAGÖZ

0.8989

0.5025

BANK ASYA ANNUAL REPORT 2007

19

No

Name

Share in the Bank

No

Name

(%)

117 SAM‹ KARAHAN

Share in the Bank (%)

0.0608

151 ‹LHAM‹ NEG‹fi

0.3749

118 HASAN KARATAY

0.7667

152 TACETT‹N NEG‹fi

0.6167

119 CELAL KARAYOL

0.3333

153 HÜRR‹YET ÖZATA

0.0058

120 MEHMET KATIRCI

0.0875

154 ADNAN ÖZATA

0.0063

121 ‹SLAM KAYA

0.0200

155 AHMET ÖZATA

0.0063

122 KAD‹R KAYALI

0.5025

156 EROL ÖZATA

0.0063

123 HÜSEY‹N KAYIKCIO⁄LU

0.0500

157 YAKUP ÖZATA

0.0063

124 HASAN KEKL‹K

0.0500

158 ABDULLAH ÖZATA

0.0125

125 KENAN KELEKÇ‹

0.2992

159 MUSTAFA ÖZATA

0.0483

126 V‹LDANE KILIÇ

0.1250

160 RAM‹S ÖZAYDIN

0.0500

127 HASAN KIRGÖZ

0.0258

161 fiÜKRÜ MURAT ÖZCAN

0.0500

128 ‹SMA‹L KIRGÖZ

0.2000

162 MUSTAFA KEMAL ÖZDEM‹R

0.0075

129 NA‹L KIYGIN

0.7733

163 RECEP ÖZDEM‹R

0.0250

130 MESUT KIZILH‹SAR

0.3250

164 ‹DR‹S ÖZDEM‹R

0.3871

131 MUSTAFA KOÇ

0.2569

165 ‹SMA‹L ÖZEN

0.5000

132 MEHMET NEVZAT KOÇAK

0.0500

166 ENVER ÖZEREN

0.0500

133 MEHMET SAL‹H KONAKÇI

0.5110

167 RAFET ÖZEREN

0.0500

134 ABDULKAD‹R KONUKO⁄LU

5.5800

168 MUSTAFA ÖZGÜN

0.0875

135 ABDURRAHMAN KOPUZ

1.1000

169 OSMAN GÜRBÜZ ÖZKARA

0.0583

136 MUSA KORKMAZ

0.0500

170 KEMAL ÖZKARAGÖZ

0.1000

137 MUSTAFA AYDIN KOYUNCU

0.8000

171 FAT‹H ÖZKARAGÖZ

0.2767

138 MET‹N KULABERO⁄LU

0.1000

172 AL‹ ÖZTURAN

0.0263

139 HASAN KURT

0.0500

173 ZEKA‹ ÖZTÜRK

0.0438

140 TURAN KURT

0.1258

174 OSMAN CAN PEHL‹VAN

4.0000

141 BURHAN KURT

0.1258

175 RAHM‹ PEKER

0.5000

142 YALÇIN AT‹LLA KURTULUfi

0.0219

176 S‹NAN SARAÇ

0.1000

143 AVN‹ KUfiOL

0.0600

177 AHMET SARIKAYA

0.0131

144 MESUT KUfiOL

0.0600

178 KADR‹ SARIKURT

0.1000

145 SELAHADD‹N KUfiOL

0.0600

179 ASIM SAYIN

0.4150

146 HASAN KUfiOL

0.0667

180 ‹BRAH‹M SAYIN

3.5218

147 HÜSEY‹N KUfiOL

0.0750

181 HASAN SAYIN

3.5725

148 HASAN KUTLUTAfi

0.0500

182 BURAK SERDARO⁄LU

0.1175

149 KAM‹L YAVUZ MALKATAN

0.0500

183 SEM‹H SERHATLIO⁄LU

0.2250

150 CENG‹Z MANAV

0.0030

184 SAL‹H SEYHAN

0.0023

BANK ASYA ANNUAL REPORT 2007

20

No

Name

Share in the Bank

No

Name

Share in the Bank

(%)

(%)

185 OSMAN SEZER

0.0500

219 MEHMED UZUN

0.2500

186 ARZU S‹LAHTAR

0.3783

220 MUSTAFA ÜNLÜ

0.0417

187 MURAT SUNGURLU

0.2683

221 AHMET RUH‹ ÜNLÜ

0.0896

188 HÜSEY‹N F‹KRET fiAH‹NBAfiO⁄LU

0.0500

222 MUSTAFA VURAN

0.0550

189 YAfiAR fiEKER

0.0021

223 AL‹ YARKIN

0.4250

190 ORHAN fiEKER

0.2000

224 AHMET YAfiAR

0.0150

191 MEHMET fi‹MfiEK

0.0500

225 N‹YAZ‹ YILDIRIM

0.0500

192 NAMIK KEMAL fi‹MfiEK

0.1250

226 fiENOL YILDIZ

0.0500

193 HARUN fi‹MfiEK

0.4000

227 HASAN YILMAZ

0.0500

194 CEM‹L TAN

0.0825

228 ‹BRAH‹M YÖNDEM

0.0500

195 HAL‹S TAN

0.3297

229 MEHMET FEVZ‹ YÜCE

0.0289

196 SEYY‹THAN TAN

0.4766

197 AL‹ RIZA TANRISEVEN

0.8151

198 MEHMET TAR‹

0.2500

199 AfiIR TAfiKIRAN

0.0500

200 MEHMET SIDDIK TEK‹N

0.3312

201 ERG‹N TONYALI

0.0500

202 KAM‹L TOPÇU

0.1425

203 ÜM‹T TOPUZ

0.1000

204 MEHMET TORUN

0.1050

1

ORTADO⁄U TEKST‹L T‹C. SAN. A.fi.

2,590,160

205 SADIK TU⁄CU

0.2500

2

SERRA TUR‹ZM LTD. fiT‹.

5,227,027

206 ‹BRAH‹M TULUM

0.0625

207 AHMET TUNA

0.0500

3

YILMAZ GÜLDAfi

208 HALUK TUNÇAK

0.1175

4

HASAN SAYIN

209 AHMET TURAL‹O⁄LU

0.0550

5

‹BRAH‹M ARI

210 MEHMET HAN‹F‹ TURAL‹O⁄LU

0.0550

211 ÖMER TURAL‹O⁄LU

0.0550

6

FORUM ‹NfiAAT DEKORASYON

212 KAZIM TURKKAYNA⁄I

0.0083

213 AHMET TÜYSÜZ

0.1000

214 MAHMUT NED‹M U⁄UR

0.0250

215 MURAT ULUS

0.0005

216 MUSTAFA NAZIM ULUSOY

0.1250

217 ERDO⁄AN USTAÖMER

0.0500

218 AL‹ RIZA UYSAL

0.0500

pending for approval from BRSA 229

8.8662 100.0000

A Group pending as of 31 December 2007 for approval from BRSA No Name Surname

TUR‹ZM SAN. VE T‹C. A.fi.

Amount

61,000 156,250 1,010,760

1,155,200

7

MEHMET ALIM

8

EYYUP KADIO⁄LU

80,000

9

ASIM SAYIN

60,000

TOTAL

299,000

10,639,397

BANK ASYA ANNUAL REPORT 2007

21

Message on behalf of the Board of Directors Esteemed Shareholders,

A steady flow of FDI into the country through privatizations and acquisitions tempered the gaping current deficit while

While the impact of the global factors showed their hand in

also maintaining the strength of the Turkish Lira throughout

countries' economies throughout the world, the domestic

the year. The Turkish economy extended its uninterrupted

developments in Turkey affected the national economy

run of growth which started in the first quarter of 2002 to

sometimes positively and sometimes negatively. The general

the 3rd quarter this year but with a slowdown in the pace

election and the selection of a new President, the crisis over

of growth. At the end of 2007 the annual rate of CPI inflation

housing loans which spread from the USA to become a

was realized as 8.39% - although this marked an improvement

global problem, rising oil prices, global terrorism and cross-

on the rate of CPI inflation in 2006, it was higher than the

border operations were some of the main factors affecting

4% target.

the Turkish economy during 2007. The banking sector sustained its growth throughout 2007 with continued interest from foreign investors. Loan growth had slowed down until June 2007 ahead of the election, but exhibited a moderate improvement after June. An easing in political tensions and uncertainty played a role in this acceleration. The net profit, return on assets and return on equity all posted an improvement in 2007. Participation banks maintained their strong development trend during the year, on one hand expanding their branch networks in order to reach more customers by presenting them better services, while on the other hand investing in alternative delivery channels and technology. In this period, participation banks have achieved a breakthrough in reaching resources by borrowing murabaha syndicated loans from foreign banks, accessed by branching out into international markets. Participation banks have used these facilities to the service of the national economy. Participation banks are expected to increase their pace of expansion in the coming period. As Turkey's youngest participation bank, in the space of just ten years Bank Asya has attained important successes as

BANK ASYA ANNUAL REPORT 2007

22

a respected institution in the Turkish financial system, without

At the end of the year, 43.5% of Bank Asya shares were

having sacrificed any of its distinctive values. It currently ranks

trading on the ISE with the shares among the stock

as one of our country's most distinguished companies.

exchange's most traded stocks. Bank Asya's market valuation tripled from TRY 1.05 billion in the stock's first year of trading

Bank Asya has achieved great strides in its development

to TRY 3.21 billion as of 31 December, 2007. The knowledge

over the last few years: in 2005, when of firm steps forward

and experience in the lending of all manner of instruments,

were taken in Turkey's macroeconomic balances, Bank

which we have brought to the real sector, along with our

Asya was one of the country's most active banks thanks in

customer-focused service approach, our effective and nimble

particular to its superior performance in corporate and

organizational structure and, in particular, our performance

commercial banking.

in corporate and commercial lending all contributed to our success in concluding the year 2007 as one of the country's

As Bank Asya entered its second decade of operation in

most active banks. Loans extended to SMEs accounted for

2006, the Bank took a number of major steps forward,

over 60% of the bank's total lending portfolio in 2007. Among

including most notably a name change and a public offering.

the SME group, the construction sector and its ancillary

After undergoing the change of name, the public offering

sectors, health, energy, and metalworking received the most

was successfully conducted with record-breaking interest

lending. In addition, our involvement in the EU-project waste

in the shares. The national and international issues were

treatment, environmental cleaning and high-tech sectors

about 50 times oversubscribed, displaying investor confidence

continued on an ever more increasing scale. Accordingly,

in both Bank Asya and in Turkey. As Turkey's first participation

Bank Asya supported a number of important projects.

bank to go public, Bank Asya was listed on the Istanbul Stock Exchange (ISE) on May 12, 2006.

Bank Asya continues to provide foreign trade financing for Turkish companies and support international projects

Our Bank has worked with a multi-shareholder structure

undertaken by Turkish contractors. Import and export

since its inception, and this public offering expanded its

transactions handled by Bank Asya in 2007 accounted for

shareholder base even further. Despite market volatility, Bank

a significant portion of Turkey's total foreign trade during the

Asya's shares posted a successful performance on the

year. We foresee that this share will continue to increase

stock exchange. The strong interest in Bank Asya's shares

cumulatively in the coming years. In response to its

can be put down to the soundness of the Bank's financial

development and stable growth, Bank Asya moved to its

structure, its successful performance and, in particular, the

new head office in Ümraniye on October 1 in a bid to better

international investors' expectations regarding Bank Asya's

meet its rising needs, to develop its customer-oriented

future which were backed by discovering an opportunity to

approach to service and further strengthen its effective and

become better acquainted with the Bank due to the public

nimble organizational structure. Bank Asya celebrated its

offering.

11th anniversary in its new building, fitting its young, modern and dynamic approach.

BANK ASYA ANNUAL REPORT 2007

23

Having completed an eleventh success-packed year, Bank

experience, our technological muscle and our absolute

Asya will strive to move forward with determination and

determination to achieve our aims.

commitment to achieve even more new undertakings in 2008. While corporate and commercial customers make

Our capital is to be raised from TRY 300 million to TRY 900

up the bulk of its portfolio, Bank Asya also continues to grow

million as authorized by our General Assembly. Also, the

strongly in retail banking, and is rapidly advancing towards

number of members on our board of directors will be raised

becoming an important actor in that market segment.

from 7 to 10. As a result of our stable development, under

In addition to investments in non-branch alternative delivery

our original plans, a capital increase would have been

channels such as the internet and a call center, the Bank is

necessary in 2009, information on which we have shared

also working unstintingly to extend its branch network. At

with our shareholders. However, the capital increase now

the end of 2007, our Bank had a workforce of 3,300

has to be brought forward due to the emergence of need

employees and 118 branch offices.

for capital resulting from changes in related legislation. However, following this capital increase, we will not be

The successes achieved so far are certainly important, but

requiring any further capital to be paid by our shareholders

we are not a company to rest our laurels. Our horizon is not

for some considerable time.

limited to our own country; our goals are great and our field of work encompasses the whole world. We still have a long

We will step up the resources devoted to training for the

way to go in the period ahead, and much that remains to

purpose of supporting our personnel and helping them

be done.

become more effective, and will also increase our investments in technology. Bank Asya will remain vigorous and active

Plans to take our subsidiaries public are proceeding

through high levels of success in personnel training and

successfully in line with these projects. We have every

supervision by means of position assignments and rotations.

confidence that the successes we achieve in these projects

Through our performance-based compensation policies and

will be every bit as great.

career planning, our employees are learning to think like business owners, and will continue to progress confidently

Bank Asya will continue to advance successfully on its course

and with loyalty to the Bank.

of becoming a financial player on a global scale by further increasing its service speed and quality, by expanding its

With each new year's balance sheet and budget, Bank Asya

array of services, by developing new products in participation

formulates, discusses and adopts five-year plans in which

banking in particular and by successfully carrying out projects

the Bank's goals for the years ahead are set out. In this

in the near future, which we hope to be admired by you, our

manner, whether today or ten or twenty years down the

shareholders. At a time when competition is already intense,

road, Bank Asya's five year plan and projections will always

and will become even fiercer in the years ahead, our greatest

be ready immediately and serve as a guide.

strength lies in our values as well as in our knowledge and

BANK ASYA ANNUAL REPORT 2007

24

Bank Asya's senior management knows that its duty is not

In closing, it is my sincerest wish that Bank Asya's general

just to oversee the successes of the present, but also to

meetings should continue to be held soundly and amicably

plan the successes of the future, and they will continue to

for many more years to come, and be propitious occasions.

prepare highly significant development programs going

I entrust you all to God and extend my love and deepest

forward. In this manner, Bank Asya, its Board of Directors,

respects.

its statutory auditors, and its senior management will remain vigorous and active, constantly renewing themselves and their success. By developing corporate governance systems and building upon its own unique superior characteristics to reach these targets, Bank Asya will grow and flourish as an undiminished brand with our country. Tahsin TEKO⁄LU Looking forward from the point that we have reached today,

Chairman of the Board of Directors

I can see Bank Asya ten years in the future, and I am excited by what I see: a bank with assets measured in billions of dollars and contributing towards national and international successes. I sincerely believe that we will translate this excitement as well as our dedication to service and our sense of duty into even greater successes. In addition, I would like to thank our employees for making Bank Asya what it is today, our correspondent banks for the strength of their relationships, and our customers for having confidence in us and for providing us with the motivation to do even better.

BANK ASYA ANNUAL REPORT 2007

25

CEO's Message Esteemed Shareholders,

uncertainty could prevent Turkey from reaching its potential this year.

We left behind 2007 as a year marked by rising political tensions for a considerable part of the year with the

I would especially like to state that, we, as Bank Asya,

general election, the selection of a new President and

are proud to have realized all the targets we had projected

the referendum process. Political developments have

for 2007. Despite the negative effect of the strengthening

closely affected the business world as well. In this

in the Turkish Lira, we reached our growth target of 50%

framework, the Turkish economy notched up 4.5%

and our Bank has once more cemented its position

growth in 2007 - short of the targeted growth rate.

among the fastest growing banks of our country.

Political uncertainty was carried over to 2008 and we now know that the first half of the year can be written

Meanwhile, while our Bank is among Turkey's most

off as a loss. I'm concerned that a prolonged period of

profitable banks, having chalked up an average return on equity of 30.5%, an average return on assets of 4.3% and a net profit margin of 8.8%. Naturally, these results were reflected to the market value of our shares, which soon started trading at the highest multiples among ISElisted banking sector stocks. In addition, the number of our branch offices nationwide rose to 118 and the number of our personnel reached 3,300; we will continue to build the size of our branch network and workforce. Apart from our branch offices - our traditional delivery channel - there have been important developments in our alternative delivery channels and the number of customers using these channels has exhibited a rapid increase. While the most important product campaign which we started in 2007 was related to our credit cards, the number of our cards in circulation rose by 85.3% from 364,686 to 675,792. We aim to increase the number of our credit cards in circulation to 1 million in the first half of 2008. Bank Asya has breached the 3% share of all credit card spending, and we aim to attain a 4% market

BANK ASYA ANNUAL REPORT 2007

26

share by the end of 2008. Our target is to become of

Despite the adverse impacts spread out by global markets

Turkey's top five banks by the end of 2010.

and existing negativities, all targets projected for 2007 were achieved, and we have full confidence in our ability

While our cash loans grew beyond our targets, the rate

to reach our targets for 2008.

of increase in our non-cash loans was realized at 19%. At the end of 2007, the total amount of cash and non-

I would like to take this opportunity to thank all of our

cash loans granted by our Bank reached TRY 11,969

self-sacrificing employees who realized these successes.

billion.

I sincerely believe that all of the targets set out for the coming years will also be met provided our employees

The most important issues in 2007 concerning our Bank

remain steadfast in their unstinting efforts. I would like

and you, our esteemed shareholders, were changes

to once again express my conviction that you, our

brought about by new regulations drafted by the BRSA

esteemed shareholders, will be with us at all times, and

(Banking Regulation and Supervision Agency). In

continue to support us in the future as you have in the

particular, our capital standard ratio, which had been

past, and I extend my deepest respects to you all.

18.1% at the end of 2006, fell to 14% by June 2007, due mainly to the inclusion of operational risk calculations in the ratio, and the ratio was realized as 14.9% by the end of the year. With the change to the risk weightings of non-cash loans, this ratio slid to below 12% - the statutory minimum - in 2008, which, in turn, required

Ünal KABACA

that we raised the bank's capital. Principally, our Bank's

CEO

profitability is sufficient to fuel our growth, but liabilities introduced by such new regulations have negatively affected our ratio. On the other hand, although our profitability had been squeezed significantly by the obligation to comply with the regulation with liquidity requirements introduced in June 2007, we still attained our year-end targets. It is estimated that the negative effect of the regulations in question on profitability will be limited to TRY 50-60 million in 2008.

BANK ASYA ANNUAL REPORT 2007

27

The Turkish Economy and the Financial Sector Outlook Both internal and external factors left their mark on the Turkish economy during 2007. Internally, these included the selection of a new President and the general election; international factors included the sub-prime mortgage crisis that started in the USA and whose fallout spread across the whole world, rising oil prices, incidences of terrorism and cross-border operations. Due to the high levels of interest rates in Turkey, the continued entry of hot money into the stock exchange and money markets combined with the expectation of stability in the markets once the elections were out of the way, FDI inflows into Turkey through acquisitions tempered current deficit expectations and thus enabled the Turkish Lira to remain strong during the year. The Central Bank, which initiated open inflation targeting in 2006, has failed to meet its target for a second year. By the end of 2007, the annual rate of inflation stood at over 6% - the upper uncertainty level. The rate of CPI inflation followed a declining trend until July before climbing in the second half of the year to reach 8.39%

YEARS

by the end of the year, due largely to rising foods prices brought about by drought and rapidly increasing energy prices. The rate of CPI inflation ended the year lower than in 2006, but significantly higher than the 4% target. The abnormal and relentless rise in global oil and commodity prices so far in 2008, combined with the disruption in budget discipline and the slide in the Turkish Lira present the primary risk factors threatening higher inflation going forward. However, inflation is projected to follow a downward trend in 2008 to end the year at about 6%. Central budget revenues ended the year at TRY 189.6 billion, exceeding the target, while budget spending was realized at TRY 203.5 billion. Thus, the budget deficit ended the year at TRY 13.9 billion - lower than its projected value. In 2007, the Turkish government's central budget spending stood at TRY 203,501 million with budget revenues of TRY 189,617 million, leading to a budget deficit of TRY 13,883 million for the year.

DOMESTIC DEBT

INTERNATIONAL DEBT

TOTAL DEBT

TOTAL DEBT STOCK/GNP

(TRY Billion)

(TRY Billion)

(TRY Billion)

(%)

2000

36.4

40.5

63.6

51.1

2001

122.2

38.7

177.9

99.7

2002

149.9

56.8

242.7

87.4

2003

194.4

63.3

282.8

78.6

2004

224.5

68.6

316.5

73.5

2005

244.8

64.6

331.5

68

2006

251.5

66.6

345

59.9

2007

255.3

67.1

333.4

44

BANK ASYA ANNUAL REPORT 2007

28

In 2007 the realization rate of central budget expenditures was 99.3%, whereas that of budget revenues was 100.8%. In 2007 non-interest budget expenditures were TRY 154,769 million, and their realization rate was 101.8%; interest expenditures were TRY 48,731 million, and their realization rate was 92%. The Central Government's debt stock, which was TRY 345 billion in 2006, edged down slightly to TRY 333.4 billion by the end of 2007, its lowest level in more than six years, before the 2001 crisis. The Government's debt stock, which had fallen in real terms for several years, also declined nominally for the first time in 2007 thanks to the strengthening local currency. Budget spending only reached 99.3% of the TRY 204,988.5 million projected at the beginning of the year. On the other hand, budget revenues reached TRY 189,617.2 million, exceeding their target of TRY 188,159 million. As such, the budget deficit was realized at TRY 13.9 billion - less than the projection of TRY 16.8 billion - but three times higher than the budget deficit in 2005. The non-interest budget surplus came in at TRY 34.8 billion, some 15.7% lower than in 2005. Despite these robust figures, the Government failed to meet its tax revenue target for 2007. The foreign trade deficit was announced as US$ 62.8 billion for 2007. In 2007 exports rose by 25.3% YoY to reach US$107,154 million while imports rose by 21.8% YoY to reach US$169,987 million. The foreign trade deficit widened by 16.3% to US$62,833 million. It should be borne in mind that the export figure, in US$ terms, was inflated by the 11% appreciation of the Euro against the Dollar, given that the majority of exports were directed to the Euro zone.

The current account deficit had widened by 8.6% YoY to US$ 29 billion in the January-October 2007 period. The current deficit is expected to exceed US$ 33 billion by the end of the year. The most important factor driving the current deficit higher has again been the foreign trade deficit. On the services balance side, rising tourism receipts have paved the way for an 8% increase in the surplus in the services balance. On the finance side, net capital inflows rose to US$ 30.3 billion in the January-October period, marking an increase of 3.7% compared to the same period in 2006. Foreign direct investments were realized as US$ 16.142 billion with a tiny increase compared to the same period of the previous year, but net investments declined due to a considerable rise in international investments made from Turkey. In portfolio investments, there has been a considerable annual rise in stock investment, but the increase in bonds was very limited as foreign investors started to sell bonds in the last quarter. The economy, which capped a 23rd quarter of straight growth, nevertheless showed signs of a slow down by the beginning of the 3rd quarter. The rate of GNP growth came in at 2% in the 3rd quarter, undershooting expectations, with the annual rate of GNP growth rate realized at 3.8% for the first 9 months of the year. The private sector's investment expenditures extended their decline which began in the last quarter of 2006. The 5.6% contraction in the agricultural sector, resulting from the drought and the sharp slowdown in the construction sector, which had been chalking up 20% rates of growth in previous years, to 5% let to a quarterly GNP growth figure of just 2% - the lowest quarterly growth rate since 2002.

BANK ASYA ANNUAL REPORT 2007

29

On the spending side, the decline in consumption and fixed capital investments played a key role in the slowdown in growth. In particular, the contraction in private sector investment expenditures, which started in the last quarter of 2006, continued in 2007 with the growth rate in fixed capital investments sliding sharply from 17.4% in 2006 to 4.6% for the first nine months of 2007. However, rising public investment expenditures ahead of the general election cushioned the fall in total investment spending. The Central Bank's tight monetary policy precipitated a squeeze in consumption expenditures. As of the first nine months, consumption expenditures rose by 2.2%, short of last year's rise of 5.6%.

August, combined with the weakening in global liquidity conditions precipitated sharp falls in the ISE indices. However, the FED's interest rate cuts and the provision of liquidity to the markets by banks set the stage for a rise in global markets, in turn leading the ISE to recover its losses and gain value again. The ISE Index, which had stood at about 39,000 at the beginning of 2007, closed the year at 55,538 points to become the 5th highest yielding stock exchange in the world, with an increase of 42% on the year.

ISE 100 Index surged by 42% in 2007.

The share of foreign investors in the ISE 100 stood at 72.38% by the end of 2007. Banks and Holdings were the sectors to attract particularly significant levels of interest from foreign investors.

The index, which kicked off the year at 39,000, exhibited a rising trend in general until the middle of the year in parallel with foreign markets. After the results of general election were announced, the index hit a record high and approached 55,000 points. However, the subprime mortgage crisis, which first hit the headlines in early

Financial Sector The banking sector continued to grow in 2007 and the share of banking sector assets in GDP increased. While foreign investors' continued interest in the Turkish banking sector points to positive expectations, it also presents a clear sign of the sector's growth potential. The rate of

Return on Average Assets (ROAA) and Return on Average Equity (ROAE) 35

33.5 30.8

30

27.3

25

23.9 21.1

20 15 11.7

10 5

3

1.5

3.3

2.4

3.1

2.7

0 Deposit Banks

Participation Banks 2005

ROAA

Participation Banks 2006

ROAE

BANK ASYA ANNUAL REPORT 2007

Deposit Banks

30

Deposit Banks

Participation Banks 9/2007

growth in loan volume, which had slowed until June, 2007 amid unease ahead of the election, recorded a moderate recovery afterwards. Although there was no significant change in interest rates, the ironing out of political uncertainties precipitated the improvement. The underlying factor that will determine the rate of growth in loans going forward is likely to be the rate of growth in banks' foreign financial resources.

Consumer loans, whose share in total loans has been increasing in recent years, totaled TRY 63.9 billion as of December 2007, referring to a YoY rise of 38.6%. The amount of consumer loans had stood at about TRY 46.1 billion at the end of 2006. The total amount spent by individual credit card customers rose by 20.5% YoY from TRY 21.2 billion to TRY 25.5 billion in the same period.

The banking sector as a whole recorded significant improvements in its net profit, return on assets, and return on equity during 2007. Although the sector's capital adequacy ratio declined slightly due to the introduction of regulations stipulating that banks set aside minimum capital levels for their operational risks by June 2007, it was higher than both the legal limit of 8%, and the targeted ratio of 12%.

Participation Banks Participation banks raised their total lending to TRY 15 billion in December, with a YoY rise of 47%. The total assets of the four participation banks rose from TRY 13.7 billion in December 2006 to TRY 19.4 billion as of December 2007. Participation banks increased the number of their branches from 355 at the beginning of 2007 to 422 by the end of the year, with their total number of personnel increasing from 7,114 to 9,215 during the same period.

On the other hand, the rising credit/deposit ratio indicates that bank's brokerage functions have increased; and the fact that the rate of repayment of receivables whose due date is over shows a horizontal trend and the sector's policy of allocating high provisions are deemed as positive developments in terms of credit risk.

Deposit Banks

December 2006

December 2007

(TRY million)

Change (%)

Total Assets

470,622

543,063

15

Loans

203,213

263,724

30

Deposits

296,495

342,031

15

Shareholders' Equity 50,428

64,362

28

Profit

13,513

30

10,358

Participation Banks

2006

2007

Change

(TRY million)

(%)

Total Assets

13,739

19,477

42

Loans

10,249

15,115

47

Deposits

11,152

14,834

33

1,552

2,376

53

392

539

38

Shareholders' Equity Profit

The average net profit of the four participation banks increased from TRY 392 million for the 2006 full year to TRY 539 million for the 2007 full year.

BANK ASYA ANNUAL REPORT 2007

31

Asya Kat›l›m Bankas› A.fi.

Activities in 2007

Corporate and Commercial Banking Corporate Banking

while also ensuring that risks are analyzed on a sounder

Seeking to meet firms' needs for quick and effective

basis. Moreover, our six specialized corporate branches

solutions in line with its high-quality and customer-

(three in Istanbul and one in Ankara, one in ‹zmir and

focused service approach, during 2007 Bank Asya

one in Bursa) serve our customers in line with their needs.

increased the number of its corporate marketing staff to provide special service to firms whose dimensions

2008 will be a year marked by more innovations and

meet specific criteria. Through its distinguished service

successes for our Bank, as in 2007. Bank Asya will

approach in the intensely competitive corporate banking

maintain its successful activities focusing on its targets,

environment and changing customer and market

while being aware of its own duties and responsibilities

conditions, Bank Asya will remain an important actor

in the field of corporate banking as in other fields.

going forward, as it has been in the past. Breakdown of Bank Asya's Total Assets (%) Other

Growing, developing, and continuously renewing itself, 100

Bank Asya's objectives in corporate banking are to:

3

2

2

74

74

2

2

22

22

80 Total Loans

• Meet the needs and expectations of customers in

60 80 40

the quickest way possible. • Offer customers a complete line of products ranging from classical banking instruments to project finance,

Fixed Assets

20 2 15

Liquid Assets

0 2005

and maximize its market share while also developing

2006

2007

new products. • Develop relations with existing customers while continuing to add new customers to the portfolio.

Breakdown of Bank Asya's Total Liabilities (%)

• Continuously improve profitability.

Shareholders' Equity

100

Through a total of 6 corporate branches and two

80

corporate portfolios in its head office, Bank Asya serves

60

firms in a number of different sectors in Turkey,

40

distinguishing themselves by virtue of their asset and

20

turnover dimensions. This approach enables the bank to better serve such customers, whose expectations are quite different from customers in other segments,

BANK ASYA ANNUAL REPORT 2007

34

11 6 1

15

Other

14 6

5 3

Borrowings

5

Deposits

77

82

75

0 2005

2006

2007

Commercial Banking

Non-Cash Loans (TRY Million)

Acting with a qualified and customer-oriented service approach in the business of commercial banking as well, Bank Asya meets companies' needs through rapid,

60%

7,450

7,000 6,261

6,000

effective and qualified solutions.

5,000 4,000

Bank Asya's basic objectives in the business of

19%

8,000

3,912

3,000 2,000

commercial banking are to provide more effective and

1,000

productive financing opportunities and to establish long-

0 2005

2006

2007

term, sustainable relationships in the face of intensely competitive and continuously changing conditions in today's financial markets by supplying comprehensive, project-based solutions that meet all of its customers' banking needs. When evaluating loan applications in commercial banking, Bank Asya utilizes modern banking techniques and takes

Corporate Loans (including leasing) (TRY Million) 43%

50%

4,000

3,900

3,000 2,592

2,000

1,815

customer and sector segmentation into account along with such factors as security, cash flow, and return. In this manner, Bank Asya diversifies its risks while increasing

1,000

0 2005

productivity.

2006

2007

Having reconfigured its Commercial Marketing Department in the second half of 2004 in order to serve

Deposits (TRY Million)

SMEs more rapidly and effectively, Bank Asya will continue

49%

its activities in the business of commercial banking in a

5,000

comprehensive manner in 2008, as it did in 2007.

4,000

47% 4,698

3,201

3,000

2,000

2,149

1,000

0 2005

2006

2007

BANK ASYA ANNUAL REPORT 2007

35

SME Banking Bank Asya commenced SME banking activities in January, 2007 in order to meet the needs of enterprises falling under the category of small and middle-sized customers between the Retail Banking segment and the Commercial Marketing segment, to develop new products and to realize more customer-oriented marketing activities.

and Letters of Credit. Moreover, cash management products and services, such as Check Books, ATMs, Cash Management Products (tax, social security premiums, invoice payments, etc.), POS, Insurance, Wire Transfers, Internet Banking, Phone Banking are also offered to our customers in the SME Banking segment.

Bank Asya's basic objectives in the business of SME banking are to meet companies' credit and cash management needs within the related segment and to render other banking services required by these companies in the quickest way possible. Moreover, the Member Enterprise Follow-up Team (MEFT), set up for direct sales and placing advertisements in member enterprises, is also able to sell cross personal products to companies with which the Bank has a credit relationship.

Beside these products, our Bank has also focused its attention on the Direct Debit System (DDS) marketing activities in order to ensure the flow of collection between companies and dealers develops a systematic form, and to assist them in regularizing their payments. We also started to offer the Virtual Commercial Card service, an alternative to above-mentioned product, to our customers.

During 2007, cash risks rose by 47% from US$ 123,645,000 to US$181,761,000. While non-cash risks increased by 22% from US$159,110,000 to US$194,383,000 in the same period, the total volume of SME Banking risks rose from US$282,755,000 to US$376,143,000, an increase of 33%.

Our Member Enterprise Follow-up Team (MEFT), set up in 2004 for direct credit sales and placing advertisements in member enterprises, carries out its activities within the business of SME Banking. The team raised its number of customers by 245% from 7,573 to 26,128 on the back of its vigorous advertisement activities. In direct credit sales, the number of credit cards increased by 157% from 7,418 at the beginning of 2007 to 19,057 by the end.

Bank Asya provides project-based, long-term and costeffective cash and non-cash loan potentials under its Enterprise Support Loan facility. This credit package includes loan products such as Corporate Financial Support, Leasing, Company Card, Letters of Guarantee

Within this framework, Bank Asya concluded the year 2007 by realizing all of its product targets with the investments it undertook in the field of SME Banking and with the addition of new products and services to its product line. MEFT Visits and Direct Card Sales (Unit)

Cash and Non-cash Risk (USD Thousand) 33% 400

194,383

376,143

245% 30 26,128

25

159,110

157%

300 282,755

20

19,057

181,761

200

15 123,645

10 100

7,418

7,573

5 0

0 2006

Cash Risk

2006

Non-cash Risk

BANK ASYA ANNUAL REPORT 2007

MEFT Visits

2007

36

2007

Direct Card Sales

Retail Banking Bank Asya completed an extremely active and competitive

The Alt›nLig Credit Card Campaign, concurrently in effect

year in retail marketing activities, which started with its

in all our branches with the aim of raising number and

vision of “Different solutions for different expectations”.

volume of transactions of Asya Cards in the sector, in parallel with advertising activities, was put in practice

Backed by marketing policies set up to take customers'

during this period. About 370,000 Asya Card applications

expectations into account, the size of our customer

were received through our branches during the 3 1/2

portfolio and our transaction volumes in the products

month long campaign.

and services we have presented to our customers As a result of these activities, the number of Bank Asya

continued to increase in 2007.

credit cards in circulation increased by 85% from 365,000 With around 30 new branches opened and new retail

in 2006 to 676,000 in 2007. The total amount spent by

marketing personnel employed in our branches, there was an increase of 44% in the number of Bank Asya's

Credit Cards (Unit)

retail customers, pushing our total retail customer base 700,000

up to 1.27 million.

676,000

600,000 500,000

In 2007 Bank Asya is the only bank in the Turkish credit

400,000

card market which is not demanding an annual card fee

300,000

365,000 216,000 146,000

200,000

from its customers. During this period, an intensive advertising and marketing campaign was conducted to

100,000 105.000 0 2003

2004

2005

2006

2007

promote the bank's credit cards, successfully raising awareness of the Asya Card brand. Customer Portfolio (Persons)

Credit Card Volume (TRY Million)

1,400,000

1,800 1,270,000

1,707

1,600

1,200,000

1,400 1,000,000

1,200

879,000

800,000 600,000 400,000

1,119

1,000

660,000

800

467,000

709

600 344,000

464

400 268

200,000

200

0 2003

2004

2005

2006

2007

0

2003

2004

2005

2006

2007

BANK ASYA ANNUAL REPORT 2007

37

our credit cards rose by 53% compared to the previous

Retail Loans Extended (USD Thousand)

year to reach TRY 1.7 billion. 250,000

In 2007 activities concerning credit cards and member enterprises were supported by various regional and general campaigns directed at customers; agreements

201,000

200,000 169,000

150,000 123,000

100,000 86,000

were entered into, especially with member enterprises 50,000

bearing a specific brand, and online shopping companies. By the end of 2007, the number of member enterprises

18,000

0 2003

2004

2005

2006

2007

reached 38,000 and cumulative POS turnover rose by Number of Merchant Businesses (Unit)

Type of Retail Loans Extended (%) 1 Consumer

40,000

38,000

18 Vehicle

30,000 26,000

20,000

19,000

8,000

10,000 6,000

81 Housing

0 2003

2004

2005

2006

2007

58% YoY to reach TRY 2.7 billion. In particular, as a

The number of customers using our alternative distribution

result of extra installment campaigns, installment spending

channels, in which we serve our customers in addition

turnover rose by 109% YoY.

to our branches, and the number of transactions conducted continued to increase in 2007. The number

In 2007 Bank Asya continued to support many residential

of customers authorized to undertake transactions

projects with important solutions brought to the

through the call center reached 205,000 while the number

construction sector in general. The Bank lent about

of those conducting such transactions through our

US$200 million for retail loan during the whole year and

internet branch reached 266,000. A total of 870,000

reached a total retail credit risk balance worth about

customers who are also debit card holders received

US$425 million by the end of the year. Based on this

services from our 179 ATMs nationwide on a 24/7 basis.

figure, individual loans comprised an 11% share in all

Moreover, ATMs enabling customers to deposit money

cash loans.

were launched in the last quarter of 2007.

BANK ASYA ANNUAL REPORT 2007

38

In 2007 the Bank mediated salary payments for about

Number of ATMs (Unit)

70,000 personnel of 606 companies. The Bank also has 179

180

agreements with 381 schools in 2007 and tuitions of

160

about 60,000 students were paid through Bank Asya.

140 120

115

100

In parallel with the increasing number of individual

80

80 67

60 40

customers, the number of customers submitting utility

43

bill payment instructions to our Bank rose by 45% YoY

20 0

2003

2004

2005

2006

2007

to reach 50,000. Total utility bill payments made by these customers through the Bank increased by 61% YoY in 2007 to reach a total value of TRY 118 million.

The number of personnel in our Telemarketing Team set up in 2006 reached 32 in 2007. The team was engaged

In 2007 real and legal persons' social security premiums

in intensive credit card sales during the year, and issued

worth TRY 970 million and taxes worth TRY 1.1 billion

about 111,000 new credit cards in 2007. With this sale

were paid through our Bank.

figure, the Telemarketing Team attained a 27% share in total credit card sales.

On the back of these activities, Bank Asya successfully improved its ranking and market share in the sector in 2007. According to figures released by the Interbank Card Center (ICC), Bank Asya was ranked 13th in terms of number of credit cards in circulation and 10th in terms of the number of POS devices, as of December 2007.

BANK ASYA ANNUAL REPORT 2007

39

International Banking Foreign Trade Transactions

Import and Export Business (USD Million)

Bank Asya is fully authorized to mediate in any kind of foreign trade and exchange transactions in accordance with international banking principles and practices. Bank

4,500

4,298

4,000 3,500

Asya employs specialist personnel who are eligible in all means made available by modern banking and who are fully committed to customer satisfaction to provide a

3,000

2,103

2,500

1,599

2,000

1,020

1,500

complete range of foreign trade finance products including

500

letters of credit, payment against documents, cash

0

against goods, advance payments and acceptance of

3,121 2,319

2005 Imports

2006

2007

Exports

credit import/export transactions; transit trade, external guarantee/counter-guarantee, stand-by letters of credit;

During 2007, Bank Asya handled imports worth

ECA and international loans and murabaha loans.

US$4,298 million and exports worth US$2,103 million, corresponding to 2.47% of Turkey's total imports and

Demonstrating its expertise in foreign exchange transactions on major projects by delivering solutions that demand a high degree of knowledge and experience, Bank Asya became the first participation bank in Turkey to receive the “Perfection in Straight Through Processing” award from the Bank of New York, one of the oldest and most highly respected banking institutions in the United States, and Standard Chartered Bank in 2006.

BANK ASYA ANNUAL REPORT 2007

40

1.95% of its total exports.

Financial Institutions

Import L/Cs (USD Million)

Successfully conducting its relations with international banks and financial institutions, Bank Asya provides the

2,000 1,832

best and the fastest services to its customers in a cost1,500

1,406

effective manner with its developed correspondent bank network and highly specialized personnel. Bank Asya continued to offer an ever increasing scope of services

1,000

939

500

in the field of international banking in 2007, and built on its previous years' successes in international trade

0 2005

2006

2007

transactions and international borrowing activities with the support of its correspondents abroad. Foreign L/Gs (USD Million)

Bank Asya established strong relations and multidirectional cooperation with more than 1,000

1000

correspondent banks in more than 100 countries and

800

leading Export Credit Agencies.

600

941

457

400

Bank Asya substantially stepped up its foreign borrowing 200

212

activities in 2007. The first murabaha syndication loan was signed in April, 2007 and a loan worth US$ 175

0 2005

2006

2007

million was provided with the participation of a total of 40 banks. Apart from banks in the Gulf region, there was considerable participation from banks in Europe,

Besides murabaha syndication loans, long-term bilateral

America, and Northern Africa for the murabaha

finance was provided from a number of banks at favorable

syndication loan composed of two tranches, one having

conditions, thanks to correspondent banks' confidence

a maturity of one year and the other having a two year

in Bank Asya.

maturity.

BANK ASYA ANNUAL REPORT 2007

41

Quality Management System The quality management system at Bank Asya is

of 1,898 suggestions were received from our

implemented as focused on satisfaction of local and

employees through the APS, and 20 employees were

foreign customers within the framework of internationally

rewarded for their respective suggestions.

recognized requirements of the ISO 9001:2000 Quality

• In orientation and career training programs, training

Management System and the principles of Total Quality

sessions to educate employees of Bank Asya's Quality

Management. A number of activities determining and

Management System and its practices and service

increasing efficiency and productivity in the realization

quality approach were provided.

of products and services in order to satisfy local and

• A number of small scaled projects were implemented

foreign customers is carried out. In line with this:

as a result of suggestions received from the personnel and related corrective, preventive and remedial

• ANAR undertook a customer satisfaction survey about

activities were taken, aimed at raising the quality and

Bank Asya in various regions throughout Turkey, with

efficiency of the services rendered and to realize

analysis in comparison with the 2005 and 2006 data

transactions rapidly and without error.

carried out. The results were reported to the senior management.

Giving particular importance to customer satisfaction at

• An annual local customer satisfaction survey was

all times and breaking new ground in the sector, Bank

conducted this year, with the results later analyzed

Asya developed its business continuity and emergency

and reported to the senior management.

plan which it prepared to provide continuity in its services

• Business flow diagrams of main and supplementary

in the event of an emergency or a disaster, and updated

support processes in product and service realization

it in compliance with emergency management

are prepared in line with the requirements set forth

requirements set forth in the “Regulation on Banks'

in the Communiqué on the Report Format in respect

Internal Control and Risk Management Systems” and

to the Control of Information Systems in Banks to be

“Communiqué on the Principles to Be Taken as Basis

Performed by Independent Audit Institutes” which

for Management of Information Systems in Banks” both

was published by the BRSA. Processes are monitored

published by the BRSA and internationally recognized

and studies for improving process are carried out by

“BS 25999 Business Continuity Management” and “ISO

means of the ARIS process modeling program.

27006 Business Continuity & Disaster Recovery Services”

• The quality management system that is implemented

standards. Accordingly, Bank Asya was able to bring

has been evaluated by the company, TUV NORD, in

the Corporate Business Continuity Management System

terms of adequacy, compliance and efficiency and

into practice. Under this scope, necessary information

the audit in question has been successfully completed.

systems, working environment and human resources

• The Asya Proposal System (APS) which allows Bank

plans were prepared. Training and test activities

employees to participate in the management, and in

necessitated by the corporate business continuity

which they can share their creative ideas and

management system in force are being carried out

proposals, is being successfully implemented. A total

accordingly.

BANK ASYA ANNUAL REPORT 2007

42

Research and Development Activities • Having initiated studies concerning contactless credit

• Having founded and adopted the card printing system

cards in cooperation with MasterCard and Visa, Bank

at branches in 2006, our Bank developed the system

Asya has continued its R&D activities in the field of

of card printing by stores in 2007, thereby bringing

contactless card systems and their areas of use.

the service to our customers.

• Having taken Credit Cards and POS System in-house

• Having started the implementation of SMS Banking,

in 2006, our Bank renewed all of its card and POS

our Bank has maintained its R&D activities to roll out

systems in 2007 to raise the quality of uninterrupted

SMS banking.

services to all cardholders and member enterprises.

• R&D studies in respect to KGS cards, Mifare cards,

Within this scope, Bank Asya pursued technological

and prepaid cards have been carried out.

developments in card payment systems and carried

• R&D studies in respect to the NFC technology and

out its R&D activities for new products. • R&D activities have been carried out in respect to the

use of mobile phones as a credit card have been carried out.

establishment of virtual POS systems, their presentation

• R&D studies in respect to mobile banking and use of

to the service of our customers, and their areas of

the BlackBerry device in business processes have

use. In addition, R&D activities were conducted for

been carried out.

the changeover to “3-D secure” implementation in virtual payment transactions. • Our Bank, which is one of the first banks to have

• R&D studies in respect to mass document scanning for central operation and colored document scanning at branches have been carried out.

allowed the use of the Turkcell Mobile Signature

• R&D activities in respect to the systematic infrastructure

practice at their internet branches, continued its

of commercial cards which are developed as a new

activities concerning mobile signature with other

service to our customers and their areas of use have

operators and conducted R&D studies for increasing

been carried out.

areas of use of mobile signature.

BANK ASYA ANNUAL REPORT 2007

43

Information Technologies • The use of the Business Intelligence project, launched

• The project to enable customers to deposit money into

to examine and report all transactions and information

their credit card accounts (either with or without using

within the banking system and to undertake strategic

a card) and accounts through ATMs, and the project of

decisions, was generalized and work on the 2nd phase

utility bill payments and depositing money to credit cards

of the project continued in 2007.

through Automatic Payment devices was put into practice.

• The SAP ERP program, purchased to keep track of our

• With the TTS (Text To Speech) project, customers may

non-banking processes, such as procurements, stock

apply for increases in their credit card limits by through

control, fixtures management, etc, was commissioned.

phones.

• Work continued on the project of upgrading banking

• With our Voice Reply System, our customers who have

software to the new technology. Under this scope,

joined our Quick Membership scheme may quickly

studies were conducted in respect to the changeover

activate their authorizations on alternative delivery channels

of banking software to the MS .Net C# platform.

(Internet Branch, Alo Asya).

• A process management system fully integrated with the

• The infrastructure at our new head office building, which

banking system was developed. Processes such as the

we moved into during 2007, was equipped with systems

evaluation of credit card applications, changes in credit

using the latest technology under the consultancy of

card limits and evaluation of individual credit applications

IBM and designed in a manner to move Bank Asya into

were developed over this system and put into practice.

the future. Under this scope, the system, network

• Necessary technical studies for the Company Debit Card,

infrastructure, remote access connections, disk units

designed to serve our commercial customers, were

and server systems were all renewed.

undertaken and this service was offered to our customers.

• Telecommunication infrastructure, fiber optic lines and

• Provincial Government agencies, where our newly opened

SDH connections in the new building were established

branches are located, continued to be added to our

in a manner whereby they may be substituted by the

utility bill payment system during 2007, enabling new branches to provide customers with a complete line of retail products.

Radio Link system when necessary. • A remote local area network infrastructure of the new building was established with a reserve system, such

• The project of rendering information services to our

that a 55 Mbit ATM connection and 20 Mbit Metro

customers through SMS was implemented. Our

Ethernet will be provided in all branches, connected to

customers are now able to complete processes such

the Head office via GSHDSL and ADSL lines through a

as receiving credit card passwords, checking account

reserve system.

balances and learning credit card limits through SMS.

• In parallel with the growth of the Bank, in order for data

• New projects were implemented to ensure that our

storing and management systems to provide an

customers are able to perform their transactions more

uninterrupted disk service on a 24/7 basis and to increase

reliably at our internet branch. Under this scope, projects

their capacity and performance, DMX3 disk units were

such as Turkcell Mobile Signature, customer identification

made operational.

by SMS verification, and online password generation

• In order to launch and generalize an ITIL-compliant

were put into practice. The Avea mobile signature project

Information Technologies Service Management system,

was carried out.

studies concerning the Service Manager project were carried out.

BANK ASYA ANNUAL REPORT 2007

44

Corporate Communication and Publicity Aware of the necessity and importance of corporate

Bank Asya's new head office building hosted a variety

communication, Bank Asya has been engaged in effective

of organizations in December on behalf of the protocol,

and continuous communication with its own customers,

the press and personnel for the celebration of the Bank's

personnel and media organizations during 2007 and

11th anniversary. Personnel organizations held for the

shaped its advertisement, public relations and promotional

purpose of sharing the exuberance of Bank Asya and

activities in this direction.

achieving the highest possible level of in-house communication significantly enhanced employee morale

Our corporate magazine “Biz Asya”, published quarterly,

and motivation.

continued to improve the communication within the corporation and enjoyed wide popularity among our

Bank Asya Cultural Services

customers.

Based on its policy of social responsibility, Bank Asya continued to engage in cultural services during 2007 for

Public relations activities aimed at ensuring that corporate

the purposes of taking responsibility for our historical

messages were delivered in a timely manner and through

and cultural values and supporting and promoting our

the right media continued unabated throughout the year

rich cultural heritage, and thus added two very valuable

during 2006. In parallel with this development, Bank

and prestigious masterpieces to our cultural world. The

Asya's latest growth figures were announced to

book and documentary entitled “Topkap› Palace with

customers on a regular basis and to the public through

Its Rooms and Events” written by Prof. Dr. ‹lber Ortayl›

the media. The Bank sponsored a variety of activities to

in October, has already made a name for itself in artistic

emphasize its “environmental, artistic, socially sensitive,

and cultural circles as one of the most comprehensive

and sport-loving” aspects in addition to its identity as a

guides ever prepared about the Topkap› Palace.

“banking specialist”. A variety of events along these lines were organized and publicized during the year.

BANK ASYA ANNUAL REPORT 2007

45

The book entitled “Land of Mevlana with His Monuments

reveals all calligraphies, epigraphs, and plates appearing

and Messages for Today “ which was prepared as an

in the Turkish-Islam masterpieces in Konya, particularly

indicator of fidelity towards Hz. Mevlana at the 800th

those at the Mevlana Museum, with unique photographs

anniversary of his birth, was published in December; in

and by giving place to the speeches of Hz. Mevlana

addition, a photo exhibition was held at our head office

about the verses, the meanings of these calligraphies

building, in which photos taken from the book were

are interpreted as if such interpretation is performed by

exhibited. “Land of Mevlana” prepared by Dr. Murat

Hz. Mevlana himself.

Sülün, the Kur'an hermeneutics expert and researcher,

BANK ASYA ANNUAL REPORT 2007

46

Bank Asya's Position in the Sector Participation Banks as of December 2007 Number of Branches

Number of Employees 28%

36%

118

3,300

72%

64%

304

5,915

Deposits (TRY Million)

Loans (TRY Million) 32%

31%

4,698

4,610

68%

69%

10,136

10,505

Shareholders' Equity (TRY Million)

Total Assets (TRY Million) 36%

32%

854

6,260

64%

68%

1,522

13,217

Net Profit (TRY Million) 41% 221

59%

BANK ASYA

318

OTHER PARTICIPATION BANKS

BANK ASYA ANNUAL REPORT 2007

47

Banking Sector - Bank Asya: Comparison The following tables compare the YoY developments at Bank Asya and in the Turkish banking sector in 2007 on the basis of selected ratios. Total Assets (%)

Loans (%) 49.79

50

60 50.63

50

40

40 30 30

30.36

20 16.35

20

10

10

0

0

Banking Sector

Bank Asya

Banking Sector

Bank Asya

Shareholders’ Equity (%)

Deposits (%)

50

40

46.77

34.99

40

30

27.11

30 20 20 16.00

10

10

0

0

Banking Sector

Bank Asya

Net Profit (%)

60 51.24

50 40 30

29.91

20 10 0

Banking Sector

BANK ASYA ANNUAL REPORT 2007

Bank Asya

48

Banking Sector

Bank Asya

Subsidiaries and Affiliates Bank Asya has a number of subsidiaries and affiliates which are active in insurance and insurance brokerage services, construction and marketing, information technologies, and tourism.

IfiIK S‹GORTA A.fi.

ASYA KIZILCAHAMAM TERMAL TAT‹L KÖYÜ

Having raised its capital by 100% to TRY 40 million in

Asyafin Turizm, 22.94% owned by Bank Asya and

2007, Ifl›k Sigorta grew by 24% in terms of premium

46.48% owned by Asyafin ‹nfl. D›fl Tic. Paz. A.fi., a

production, exceeding the sector average rate of growth

subsidiary of Bank Asya, undertook the operation of the

by 8%. Rendering nationwide service through its regional

Asya Thermal Holiday Village. Asya K›z›lcahamam Thermal

offices in Ankara, Adana, ‹zmir and Antalya and regional

Holiday Village is located in the district of K›z›lcahamam,

representatives in Trabzon and Bursa, Ifl›k Sigorta raised

famous for its thermal waters, which have been a source

its number of delivery channels by 16% and its number

of healing for different civilizations for centuries. The

of personnel by 11% in this period, maintaining its stable

facility is 75 km from Ankara, 379 km from Istanbul and

growth through 362 Authorized Agencies, 198 Bank

100 km from Ankara's Esenbo¤a Airport, and just a 5-

Branches and an extensive network of 500 contractual

minute walk from the center of K›z›lcahamam. Located

automobile service points. The Company has

on approximately 100,000 m2 of land, Asya Thermal

demonstrated extensive efforts to offer new products to

Holiday Village boasts a 5-star hotel with 94 rooms and

existing markets and with the advantage of having one

200 beds, 494 deluxe time-sharing houses (with up to

of the best IT software systems in the insurance sector,

11,856 bookings a year), social facilities, indoor and

as well as seeking new markets with existing products.

outdoor swimming pools, health units, a shopping center,

Accordingly, Ifl›k Sigorta has achieved rapid progress

and a cultural center. Asya Thermal Holiday Village,

towards being a permanent brand in the Turkish Insurance

which has become associated with the holiday, health

Sector in which many foreign insurance companies have

and conference concepts because of its wealth of

recently started to operate through acquisition. This has

features, has entertained many prestigious domestic

been achieved by rendering rapid and high-quality service

and foreign guests and hosted large conferences and

in accordance with its corporate values, backed by its

organizations since it was put into service.

strong reassurance structure, employees and agencies.

BANK ASYA ANNUAL REPORT 2007

49

Asya K›z›lcahamam Thermal Holiday Village, which does

institutes and organizations, embassies, political parties,

not only keep view of developments, but directly

pharmaceuticals companies, insurance companies, shoe

participates and leads them in the field of “congress

manufacturers, textiles companies, electronic devices

tourism” that became popular in recent years, keeps

companies and wedding-organization companies.

the field of activity of the facility broad because of congress tourism. The facility had successfully hosted

An application was submitted to official authorities for

many organizations with its 11 conference rooms until

the conversion of Asyafin Turizm Proje ‹nfl. Taah. Emlak

2007, when the total number of the facility was increased

San. ve Tic. A.fi. into a Real Estate Investment Trust

to 19 with the addition of the US$15 million Asya

and the application process is approaching a conclusion.

Congress Center that was launched last year. The

Asya K›z›lcahamam Thermal Holiday Village stands as

facility's largest hall, which is equipped with state-of-

testament to the profitability of investment in the region.

the-art technical equipment and which renders service

This is supported by the continuous improvement in

with specialized personnel, is the 1,300 person capacity

quality and rising demand for congress tourism and

“astylar” hall. Users of Asya K›z›lcahamam Thermal

health tourism in recent years.

Holiday Village for congress purposes include state

Subsidiaries and Affiliates (as of 31.12.2007) Address (City/ Country)

Title

The Bank’s Share-if Different Voting Share

The Bank’s Risk Group Share

(%)

(%)

1 Asyafin Sigorta Arac›l›k Hizmetleri Ltd. fiti.

‹stanbul/Turkey

95.00

95.00

2 Asyafin ‹nflaat San. A.fi.

‹stanbul/Turkey

99.93

99.93

3 Ifl›k Sigorta A.fi.

‹stanbul/Turkey

65.42

65.42

4 Asyafin Turz. ‹nfl. San. A.fi.

‹stanbul/Turkey

22.94

69.42

5 Asyakart Teknoloji Hizmetleri A.fi.

‹stanbul/Turkey

99.50

99.50

BANK ASYA ANNUAL REPORT 2007

50

Independent Auditor's Compliance Opinion on the Annual Report

BANK ASYA ANNUAL REPORT 2007

51

Asya Kat›l›m Bankas› A.fi.

Management and Corporate Government Practices

Board of Directors

Board of Directors

Tahsin TEKO⁄LU

M. fievki KAVURMACI

A. Selçuk BERKSAN

Chairman

Vice Chairman

Board Member

Industrialist, businessman. Born in 1937 in Giresun, Tahsin Teko¤lu graduated from the Faculty of Architecture at Istanbul Technical University and the Istanbul School of Trade and Economics. Beginning his career in 1955 in fabric production and trading, Mr. Teko¤lu is known for his involvement in partnerships, the companies he founded, and the innovative improvements he brought into the textiles sector. Between 1973 and 1980, he served as an instructor in the Textiles Department of the Fine Arts Academy. He began trading in international textiles with the companies he founded in 1980. As one of Bank Asya's founding partners, Mr. Tahsin Teko¤lu served as a board member and vice chairman from 1996 until July 2004, at which time he was elected chairman. He currently also serves as chairman of Ifl›k Sigorta A.fi., Asyafin Turizm A.fi. and Asya Kart Teknoloji Hizmetleri A.fi., as well as vice chairman for Asyafin ‹nflaat A.fi., as well as a partner of Forum ‹nflaat A.fi. Mr. Teko¤lu also has partnerships with a variety of other companies.

Textiles businessman. Born in 1941, Mustafa fievki Kavurmac› graduated from the University of Istanbul's Faculty of Economics in 1965. He went on to become a founding partner in the Ayd›nl› Group of Companies, achieving great success in the textiles sector by gaining the rights of international licensing agreements to produce and market such worldwide brands. One of Bank Asya's founding partners; Mr. Kavurmac› served as a board member between 1996 and 1997 and as an auditor between 1997 and 2004. He was appointed vice chairman in July 2004. He currently serves as chairman of the Board at the Ayd›nl› Group of companies and as a board member in Asyafin ‹nflaat A.fi. and Asyafin Turizm A.fi. He is also a partner of Forum ‹nflaat A.fi.

Businessman. A. Selçuk Berksan was born in 1942 in Istanbul and graduated from Istanbul Technical University in 1965 with a degree in mechanical engineering. He assumed several vital responsibilities in the development of one of Turkey's well-known and big food companies until 1987, serving as both a partner and as a manager, during which time many new products were introduced which are still widely popular. The company he established with his partners in 1987 has achieved many “firsts” in Turkey in fields such as food, agriculture, non-food sector, etc, which also include pioneering the introduction of foreign capital into the country. Mr. Berksan was responsible for the establishment and development of Turkey's largest crisps and snacks factories, thus bringing foreign investment into the country. The group companies were later sold to one of the world's largest food conglomerates. As one of the founding partners of Bank Asya, Mr. Berksan has served as a board member on several occasions since 2006, a position he currently holds. He is also currently serving as chairman of Asyafin ‹nflaat A.fi., as vice chairman of Asya Kart Teknoloji Hizmetleri A.fi., and as managing director of Asya Turizm A.fi. He is also a partner and board member of a variety of other companies.

BANK ASYA ANNUAL REPORT 2007

56

Tacettin NEG‹fi

Ünal KABACA

Salih SARIGÜL

Cemil ÖZDEM‹R

Board Member

Board Member & CEO

Board Member

Board Member

Businessman. Born in 1948 in Bayburt, Tacettin Negifl is a primary school graduate. After working in the field of textiles, he established his own company in 1971 where he began his trading career. In 1978, he founded Negifl Kollektif fiirketi and in 1988 he established Negifl Giyim ‹malat ve ‹hracat A.fi., working mainly in the import and export of textiles. During the course of his 34-year business career, he has been honored on many occasions, received a number of awards, certificates, and commendations. Mr. Negifl was appointed as a board member of Bank Asya in July 2004. In addition, he is currently serving as a vice chairman at Asyafin Turizm A.fi., and is also a partner of Forum ‹nflaat A.fi. and Asyafin ‹nflaat A.fi. He also serves as a partner and a board member in a variety of other companies.

Born in Gebze in 1962, Ünal Kabaca graduated from the Department of Economics at the Faculty of Political Sciences in the University of Ankara. He also holds a master's degree in international economics from Virginia Radford University. He served for 12 years at the Treasury Department as a sworn bank auditor. Mr. Ünal Kabaca began his career at Bank Asya as the managing director in 1997. Since 2000, he has served as the CEO and as a board member. He is also currently serving as a board member at Ifl›k Sigorta A.fi.

Businessman. Born in Van in 1955, Salih Sar›gül graduated from the School of Finance at Ege University in 1981. He has worked occasionally as an auditor at Bank Asya since 2000. He worked as auditor at Bank Asya between 2004 and 2006, and was appointed as a board member in December 2006. Mr. Sar›gül is also a board member at Asya Kart Teknoloji Hizmetleri A.fi. and Ifl›k Sigorta A.fi., and an auditor at Asyafin Turizm A.fi. and Forum ‹nflaat A.fi. He is also a partner of Asyafin ‹nflaat A.fi. and a partner and board member in a variety of other companies.

Born in 1960 in Sivas, Cemil Özdemir graduated from the School of Business Administration at the Faculty of Political Sciences in Ankara University in 1984. Upon graduation, he started his career as an assistant sworn bank auditor, during which time he also managed to study and research topics of investment banking and risk capitalization in the United States for one year. He left his job as a sworn bank auditor in December 1995. He has since served as the general manager at Yurtbank A.fi., a senior assistant general manager at Family Finans Kurumu A.fi., and as an executive board member for Halkbank. Mr. Cemil Özdemir joined the Bank Asya family in 2005 as a board member responsible for internal control and risk management system.

BANK ASYA ANNUAL REPORT 2007

57

Terms of Office of Members of the Board of Directors The list of our Bank's board of directors and the terms of office for its members are set forth in detail in article 32 of our articles of association. Members of the board are elected to three-year terms of office and may be reelected when their terms expire. Name Surname

Position

Position held since

Tahsin TEKO⁄LU

Chairman

1996

Mustafa fievki KAVURMACI

Vice Chairman

1996

Abdurrahman Selçuk BERKSAN

Board Member

1996

Salih SARIGÜL

Board Member

2006

Tacettin NEG‹fi

Board Member

2004

Ünal KABACA

Board Member and CEO

1997

Cemil ÖZDEM‹R

Board Member

2005

Name Surname

Position

Position held since

Ali AKBULUT

Statutory Auditor

2000

Ahmet ÇEL‹K

Statutory Auditor

2004

At›f B‹LG‹N

Statutory Auditor

2006

Meetings of the Board of Directors Under article 38 of our articles of association, the board of directors must convene at least four times during a fiscal year. The board may also convene whenever the company's affairs dictate and/or upon an invitation by its chairman. All members are required to attend the meetings of the board of directors unless they have a valid reason for not doing so. Board members are paid an honorarium for attending meetings in accordance with article 44 of our articles of association. Internal Systems and Unit Heads Name Surname ‹brahim Ekrem U⁄UR Hilali YILDIRIM

Mehmet Kamil TÜMER

Position held for Responsible for Education 6 months Internal Control Center B.A. in Banking 25 months Inspection Board B.A. in Business Administration M.B.A. in Banking 26 months Risk Management B.A. in Business Administration

BANK ASYA ANNUAL REPORT 2007

58

Professional Experience 16 years

13 years 27 years

Audit Board

Audit Board

Ali AKBULUT

At›f B‹LG‹N

Ahmet ÇEL‹K

Auditor

Auditor

Auditor

Textiles businessman. Ali Akbulut was born in 1956 in Malatya and graduated from ‹nönü University's Faculty of Economics and Administrative Sciences in 1982. He was one of the partners in Feza Gazetecilik, which was listed among the top 500 corporations in Turkey in 2004. Since 1996, Mr. Akbulut has occasionally served as an auditor at Bank Asya. He is also a partner of Asyafin ‹nflaat A.fi. and Asyafin Turizm A.fi. He has additionally served as a partner and board member of a variety of other companies.

At›f Bilgin was born in 1952 in Elbistan and graduated from Gazi Faculty of Education in 1979. Mr. Bilgin was appointed as an auditor at Bank Asya in December 2006. He is also the chairman of Forum ‹nflaat A.fi. and an auditor at Asyafin Turizm A.fi., Asyafin ‹nflaat A.fi. and Asya Kart Teknoloji Hizmetleri A.fi.

Businessman. Ahmet Çelik was born in Erzurum in 1955 and graduated from the Faculty of Economics at Istanbul University in 1984. He began his career in a family firm, Çelikeller A.fi., which has been ranked number one in the Marmara region and Turkey four times in succession. He also followed in his father's footsteps to enter the construction sector, and founded Yap› Yat›r›m ve Gayrimenkul A.fi. operating in Turkey, Tajikistan, and Kyrgyzstan.

BANK ASYA ANNUAL REPORT 2007

Mr. Çelik has been serving as an auditor at Bank Asya since 2004. Additionally, he is a board member at Asyafin ‹nflaat A.fi., Asyafin Turizm A.fi. and Forum ‹nflaat A.fi., and an auditor at Ifl›k Sigorta A.fi. He also serves as a partner and board member in a variety of other companies.

60

Senior Management

Ünal KABACA

Ünsal SÖZB‹R

Ayhan KESER

CEO

Executive Vice President

Executive Vice President

Born in Gebze in 1962, Ünal Kabaca graduated from the Department of Economics at the Faculty of Political Sciences in the University of Ankara. He also holds a master's degree in international economics from Virginia Radford University. He served for 12 years at the Treasury Department as a sworn bank auditor. Mr. Ünal Kabaca began his career at Bank Asya as the managing director in 1997. Since 2000, he has been serving as the CEO and as a board member. He is also currently serving as a board member at Ifl›k Sigorta A.fi.

Ünsal Sözbir was born in 1966 in Ç›ld›r and graduated from the Department of Public Administration at Faculty of Political Sciences in Istanbul University in 1987. He entered the Treasury Undersecretariat as an assistant bank auditor in the same year and later served as a bank auditor between 1991 and 1996. Mr. Sözbir, who joined Bank Asya in 1996 as an executive vice president, still serves in the same position.

Born in 1970 in Kalecik, Ankara, Ayhan Keser graduated from the Ankara Anadolu Commercial High School in 1987, and from the Faculty of Economics at the Middle East Technical University in 1991. After a short career at Ziraat Bank, he served as an assistant bank auditor and bank auditor at the Undersecretariat to the Treasury. Mr. Keser came to Bank Asya in September of 1997 as an executive vice president, and maintains this position today. He is also an auditor at Ifl›k Sigorta A.fi., a subsidiary of Bank Asya.

BANK ASYA ANNUAL REPORT 2007

62

Yusuf ‹zzettin ‹MRE

Mustafa BÜYÜKATEfi

Dr. Mahmut DEM‹RKAN

Executive Vice President

Executive Vice President

Head of Information Technology and Management Systems

Yusuf ‹zzettin ‹mre was born in Do¤anhisar, Konya, and graduated in 1978 from the Tarsus School of Foreign Languages and the Faculty of Economics and Administrative Sciences at Uluda¤ University in 1984. He embarked on his banking career in 1985 as an assistant inspector on the Egebank Inspection Board. He served as an accounting, budget, and financial control manager at Egebank between 1990 to 1994, and at Arab Turkish Bank between 1994 and 1996. Mr. ‹mre began was employed at Bank Asya in October 1996 as an accounting, budget, and financial control manager. He has been an executive vice president since June, 2004.

Born in Konya in 1957, Mustafa Büyükatefl graduated from the Faculty of Business Administration at Atatürk University. He served as an inspector at Garanti Bank from 1985 to 1995 and as a project application assistant manager between 1995 and 1996. Mr. Büyükatefl joined Bank Asya as a Corporate Marketing Manager in 1996, and has been serving as an executive vice president since 2004.

Dr. Mahmut Demirkan was born in Kayseri in 1964 and graduated from the Faculty of Political Sciences at Istanbul University in 1987. He went on to complete a master's degree in 1991, majoring in management and organization at the Institute of Social Sciences at the same institution, and later completed a doctorate in social politics. He worked as a national project specialist in the United Nations Development Program between 1990 and 1993. Dr. Demirkan started his academic career as a research assistant at the Faculty of Economics and Business Administration in the University of Sakarya in 1993, teaching work economics and industrial relations. He started to work as a lecturer at the Department of Human Resources Management in 1997. After joining Bank Asya in 2003 as the Manager Responsible for Organization, Quality and Systems Development, Dr. Demirkan began serving as the Head of Information Technologies and Management Systems in 2005.

BANK ASYA ANNUAL REPORT 2007

63

Organization Chart

BOARD OF DIRECTORS Board of Directors Office Management OSMAN NUR‹ ERSEN

Internal Audit Director H‹LAL‹ YILDIRIM President and CEO ÜNAL KABACA

Investor Relations R‹FAT A. ÇA⁄LAYAN

Internal Control ‹BRAH‹M EKREM U⁄UR

Risk Management MEHMET KAM‹L TÜMER

Executive Vice President

Executive Vice President

Executive Vice President

Executive Vice President

ÜNSAL SÖZB‹R

AYHAN KESER

YUSUF ‹ZZETT‹N ‹MRE

MUSTAFA BÜYÜKATEfi

Head of Information Technology & Management Systems MAHMUT DEM‹RKAN

Corporate Marketing

Human Resources

Corporate Loans Operations

Payment Systems

AL‹ fiENEL

ÖMER FARUK fiENEL

AD‹L ZEK‹ fiAH‹N

FARUK NURDO⁄AN

Organization, Quality Management & System Development MUSTAFA SARAÇ

Commercial Marketing - I

Credit Allocation

International Transactions

Alternative Delivery Channels

System Operations

ENDER GÜRER

AL‹ FUAT TAfiKESENL‹O⁄LU

OLCAY ÇAKIR

‹SRAF‹L AYDIN

BEK‹R BAfiKURT

Commercial Marketing - II

Financial Analysis & Information

Accounting, Budgeting & Financial Control

Retail Loans Allocation

Software Development

‹BRAH‹M Ö⁄ÜDÜCÜ

ERDAL ERDEM

KAM‹L YILMAZ

HASAN AYHAN KÜÇÜK

BÜLENT GÜNGÖR

Retail Marketing

Credit Follow-up

Treasury

Banking Services

SEM‹H ALfiAR

EKEN BERBER

CENK YAVUZ

JÜL‹DE BAfiAK ÜNAL

SME Banking

Public Relations & Advertising

Administrative Affairs

TOLGA SASIK

NALAN Ç‹⁄DEM BELGUTAY

AL‹ fiENTOSUN

Financial Institutions

Legal Department

Construction & Development

SAL‹M KÖSE

HÜSEY‹N SEV‹L Legislation NAZAN ERGUN

BANK ASYA ANNUAL REPORT 2007

64

Committees Audit Committee Position Member Member

Name Surname Mustafa fievki KAVURMACI Cemil ÖZDEM‹R

Main Position Vice Chairman of the Board of Directors Member of the Board of Directors

The Audit Committee submits an “Audit Committee Activities Report” to the Board of Directors, which it prepares at regular intervals, and in which it describes the results of auditing and risk management activities conducted to ensure that an effective internal audit and risk management system is in place and functioning throughout the Bank. The committee convened 14 times during 2007 and committee members were present at all meetings.

Credit Committee Position Chairman Member Member

Name Surname Tahsin TEKO⁄LU A. Selçuk BERKSAN Ünal KABACA

Main Position Chairman Member of the Board of Directors Member of the Board of Directors and CEO

The Credit Committee is responsible for assessing all of the Bank's commercial, corporate and enterprise lending proposals, and meets on a weekly basis. The committee may also convene whenever necessary upon the Chairman's invitation. The Credit Committee approves or rejects lending proposals within the limits of its authority as set out in the Banking Law and related regulations. Lending proposals which exceed the authority are submitted to the Board of Directors for their approval. The Credit Committee met every week in 2007 and committee members were present in the meetings.

Assets and Liabilities Committee Position Chairman Member Member Member Member Member Member Member Member Member Member Member Member Member

Name Surname Ünal KABACA Ünsal SÖZB‹R Ayhan KESER Yusuf ‹. ‹MRE Mustafa BÜYÜKATEfi Mahmut DEM‹RKAN Kamil YILMAZ Ali fiENEL ‹brahim O⁄ÜDÜCÜ Ender GÜRER Cenk YAVUZ Semih ALfiAR Tolga SASIK *

Main Position CEO Executive Vice President Executive Vice President Executive Vice President Executive Vice President Information Technologies and Management Systems Group Manager Accounting, Budgeting and Financial Control Manager Corporate Marketing Manager Commercial Marketing II Manager Commercial Marketing I Manager Fund Management Manager Retail Marketing Manager SME Banking Manager Financial Institutions

* Representatives of this unit attend meetings on a rotational basis.

BANK ASYA ANNUAL REPORT 2007

65

The Assets and Liabilities Committee convenes on a weekly basis. It is chaired by the CEO and attended by the executive vice presidents and the managers of units whose activities may have an impact on the Bank's balance sheet. The issues discussed at these meetings include the Bank's balance sheet, the activities of its different business lines, general economic data, and current political and economic developments and a weekly strategy is identified accordingly. The Assets and Liabilities Committee met every week during 2007 and a majority of committee members were in attendance at these meetings.

Discipline Committee Position

Name Surname

Main Position

Chairman

Ünal KABACA

Member of the Board of Directors and CEO

Member

Ayhan KESER

Executive Vice President

Member

Salim KÖSE

Chief Legal Consultant

Member

Ömer Faruk fiENEL

Human Resources Manager

The Discipline Committee is responsible for identifying transactions and acts which contravene the Bank's internal regulations, and to undertake disciplinary action as necessary, determine the perpetrators, the degrees of their culpability, and the possible losses caused. The Discipline Committee is chaired by the CEO and convenes when necessary and with the participation of members of management as may be concerned to discuss and come to a decision on the items on its agenda.

BANK ASYA ANNUAL REPORT 2007

66

Summarized Board of Directors Report On the basis of the summarized financial indicators,

At the same time, resources were directed into effective

2007 was an extremely successful year.

and productive areas in parallel with the increase in total assets, which resulted in a 95% YoY rise in our pre-tax

Our assets grew by 50% when compared to 2006. The

profit, which increased from TRY 196 million to TRY 273

47% YoY increase in funds collected contributed

million.

significantly to this growth. Bank Asya's net profit elevated the bank into the position In addition, our Bank received a murabaha syndication

of being Turkey's most profitable participation bank in

loan worth US$ 175 million in total, with an US$ 89

2007.

million portion subject to an interest rate of LIBOR +0.65% and the remaining US$ 86 million portion subject to an interest rate of LIBOR +0.85%. The loan was formed from a consortium composed of 40 banks and the syndication loan agreement was signed on April 12, 2007.

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67

Human Resources Practices Hiring and Promotion Practices

in which abilities required by the nature of the business

Bank Asya's primary goal in employee recruitment is to

are evaluated with the participation of human resources

employ people who will adopt our Bank's mission and

executives and unit managers.

vision in all of its aspects, plan to conduct professional banking, and who can keep pace with the peak tempo

Career paths at Bank Asya are open to everyone, even

in respect to both personal and corporate development

up to the most senior positions. Under our promotion

in a tolerant and dynamic environment.

system, any employee who has demonstrated success in their current position, who has completed the minimum

The realization of this strategy is contingent upon providing

period of service stipulated for that position and who

our employees with suitable opportunities and a high

has passed the examinations held at the end of the

level of job satisfaction following a recruitment process,

training period is entitled to be promoted to a vacancy

in which employees who fit in with our Bank's business

to which the applicant may ascend.

and corporate culture are evaluated based on their During 2007, a total of 1,303 people were recruited to

education, experience and abilities.

the Bank's workforce, increasing the number of personnel The first stage of the hiring process concentrates on

by 40% from 2,365 at the end of 2006 to 3,300 by the

setting out the need for staff who will perpetuate Bank

end of 2007. The average age of the Bank's employees

Asya's quality and dynamic organization, taking into

is 29, and 76% of our employees hold at least one

account the requirements of the Bank as it grows and

university degree.

develops in line with its targets. In the second stage, both external and internal candidates whose applications

Training at Bank Asya

are in line with the basic specifications required by the

The goal of training at Bank Asya is to train Bank Asya

position are assessed. Finally, based on the Bank's

employees in line with the Bank's mission, vision, and

policy of “the right person for the right job”, suitable

objectives for higher positions as the multidimensional,

candidates are recruited following the interview process

modern bankers that they must be in an environment in

Number of Employees Attended Trainings 32%

Number of Employees

73%

32%

10,000

40%

3,500 9,338

3,300

3,000 8,000 2,500 6,000

4,000

2,365

2,000

5,413

1,797

1,500

4,095

1,000 2,000

500 0

0 2005

2006

BANK ASYA ANNUAL REPORT 2007

2007

68

2005

2006

2007

which banking is continuously developing and to provide

average of 11.36 days of training provided per person.

them with all the knowledge and skills they will need at

There was in increase of 73% in the number of personnel

different stages of their careers. Within the framework

taking part in training sessions when compared to the

of our Bank's human resources policies, our strategically

previous year.

important training system seeks to support our employees' development and to create motivation and

In 2007 an electronic learning system (training through

job satisfaction.

internet) was established under the name of Asya Akademi and thus, providing our personnel with the

New recruits to the Bank take part in Orientation, Basic

option of remote training. A total of 1,928 personnel

Banking, Assistant Inspector and Auditing Training

made use of the Akademi facility. In addition, training

sessions and Management Trainee training programs

sessions were held abroad, with 25 personnel sent to

depending on the positions they will be filling. Afterwards,

Germany and Austria in 2008 to participate in training

their ongoing development is supported by their

sessions for BASEL II, in line with the “Leonardo Da

participation in training programs which provide them

Vinci” project under the scope of the Lifetime Learning

with technical knowledge and skills, and foster their

Project.

personal development. During 2007, 9,338 people took part in a total of 2,250 days of training time with an

BANK ASYA ANNUAL REPORT 2007

69

Bank Asya's Risk Group The Bank's volume of business with the Risk Group, of which it is a Member, Outstanding Loans and Deposit Transactions at the end of the Reporting Period and Income and Expenditures during the Reporting Period:

Current Period (31.12.2007) (TRY Thousand) Bank Asya's Risk Group

Subsidiaries and Affiliates

Other Real Persons and Corporate Entities of the Risk Group

Cash

Non-cash

Cash

Non-cash

Cash

Non-cash

76

432

-

-

27,587

33,530

-

132

-

-

45,060

60,382

76

432

-

-

27,587

33,530

13,890

7

-

-

9,289

397

Loans and Other Receivables Balance at beginning of the year Balance at year-end Profit shares and fees and commissions

Bank Asya's Direct Indirect Shareholders

(*) Risk group balance includes leasing balance as well. (31.12.2007; TRY 818,000)

Previous Period (31.12.2006) (TRY Thousand) Bank Asya's Risk Group

Subsidiaries and Affiliates Cash Non-cash

Loans and Other Receivables

Bank Asya's Direct Indirect Shareholders

Other Real Persons and Corporate Entities of the Risk Group

Cash

Non-cash

Cash

Non-cash

-

132

-

-

45,060

60,382

7,851

8

-

-

171,321

124,636

-

132

-

-

45,060

60,382

Profit shares and fees and commissions 1,908

-

-

-

7,989

-

Balance at beginning of the year Balance at year-end

(*) Risk group balance includes leasing balance as well. (31.12.2006; TRY 3,092,000)

Deposits Belonging to the Risk Group of which the Bank is Member (TRY Thousand)

Subsidiaries and Affiliates

Deposits

Current Period

Current Period

Balance at beginning of the year

22,049

-

31,644

Balance at year-end

38,655

-

61,945

4,308

-

3,875

Profit share expenses

BANK ASYA ANNUAL REPORT 2007

70

Bank Asya's Direct Indirect Shareholders

Other Real Persons and Corporate Entities of the Risk Group

Bank Asya's Risk Group

Current Period

Corporate Governance Principles Compliance Report STATEMENT OF COMPLIANCE WITH CORPORATE GOVERNANCE PRINCIPLES Bank Asya complies with the structures, processes and principles relating to Corporate Governance subject to the Banking Law, in particular, and the requirements of other applicable legislation governing its operations in general, and discloses the rules and practices determining the relations among the Bank's Board of Directors, Shareholders and stakeholders in line with its approach to social responsibility, provided that the provisions of the Banking Law are reserved. SHAREHOLDERS Investor Relations Group Within the framework of public disclosure and principles of corporate governance, the Bank's Investor Relations Group reports to the Board of Directors. The principal tasks of the Investor Relations Group are presented below: • Ensuring maintenance of the records regarding Shareholders in a healthy, secure and up-to-date manner, • Responding to the Shareholders' written requests for

information about the Company, apart from those that are not publicly disclosed, are of a confidential and or which contain trade secrets, • Ensuring that the General Assembly meetings convene in accordance with the applicable legislation, the articles of association and other internal regulations; • Preparing documents which the Shareholders could use in the General Assembly, • Ensuring that the results of the voting are recorded and applicable reports are conveyed to the Shareholders, • Observing and complying with all regulations related to public disclosure, including the legislation and the Bank's disclosure policy, • Creating a section on the Bank's website which informs shareholders on matters closely concerning them, such as material events that have an impact on financial structure including the Bank's shareholding structure, members of the Board of Directors, annual reports, capital structure, quarterly income-loss statements, branches and key personnel data, and General Assembly resolutions, and keeping the information in this section up-to-date; The Investor Relations Group reports on the operations it carried out in the relevant period to relevant authorities via predefined channels.

Contact information for our employees working in the Investor Relations Group is as follows:

Name & Surname

Position/Title

Phone

Email

A. Rifat ÇA⁄LAYAN

Investor Relations / Manager

0216 633 59 60

[email protected]

U¤ur GÜNEY

Investor Relations / Assistant Manager

0216 633 59 61

[email protected]

Özlem COfiKUN

Investor Relations / IInd Manager

0216 633 59 62

[email protected]

Alpay GÜNERALP

Investor Relations / Officer

0216 633 59 63

[email protected]

BANK ASYA ANNUAL REPORT 2007

71

Shareholders' Exercising of Their Right to Obtain Information An Investor Relations section is made available in Turkish and English languages on our Bank's website accessible at www.bankasya.com.tr, and information regarding the Bank is disclosed to shareholders and the public simultaneously. The website contains share certificate information, an informative profile of the Bank, periodic financial statements and annual reports, presentations, and the corporate management structure of Bank Asya. Information as stipulated by the law is disclosed as “public disclosure of material events” in accordance with the provisions of the Banking Law, the Turkish Commercial Code, the Capital Market Law and applicable legislation. The Investor Relations Group responds to all those queries from shareholders which do not include requests for information which contains trade secrets, with keen observation of the principle of equality. The Investor Relations Group responds to an average of 300 queries every month received by telephone and e-mail. In addition, all questions about Bank Asya are answered in one-on-one or group meetings held with 10 existing or potential investors and/or bank analysts, with such meetings taking place every month, on average. The Investor Relations Group's activities included the participation in a total of 25 foreign investment conferences and individual meetings with 341 investors in 2007. Information on General Assembly Meetings Announcements concerning General Assembly Meetings are published within legally prescribed periods in the Trade Registry Gazette and in the press, including the agenda items and a specimen of the proxy form. Additionally, our Shareholders also receive invitations by post. Our Bank's Ordinary General Assembly meeting was convened on March 31, 2007 in the reporting period. In the General Assembly, Shareholders exercise their right to direct questions, all of which were answered. Shareholders

BANK ASYA ANNUAL REPORT 2007

72

did not submit any proposals in addition to the agenda items during the meetings held in the reporting period. The Bank's articles of association allow voting by proxy. Voting Rights and Minority Rights Shareholders are entitled to one vote in the General Assembly for each TRY 1 (one New Turkish Lira) nominally valued share which they hold. The Shareholders may cast their votes in person or by proxy. Votes are cast by a raise of hands. However, upon demand by one twentieth of the shares represented in the General Assembly, a secret ballot will be carried out. Matters related to proxy voting are determined in accordance with applicable legislation. This matter is covered in Article 24 of our Bank's articles of association. Dividend Distribution Policy and Timing The principles of dividend distribution in place at Bank Asya are covered in detail in our Bank's articles of association, which are also posted on the website, and practices in respect to the Bank's dividend distribution policy are carried out within the framework of the articles of association. Dividend distribution is carried out within the legally prescribed times. The Board of Directors' proposal regarding dividend distribution is included among the General Assembly's agenda items, which are presented for comments by the Shareholders and resolved by the General Assembly. This matter is covered in Article 24 of our Bank's articles of association. Transfer of Shares The procedure regarding the transfer of shares is set forth as follows in Article 11 of our Bank's articles of association: The transfer of the Group (A) shares, all of which are registered, is subject to the approval of the Board of Directors. The Board of Directors may, at its sole discretion,

reject the share transfers without giving any reason, or may accept or approve on such conditions and manners as it deems fit. No share transfer shall be valid for the Company unless it is registered in the stock register.

Disclosure of Material Events Within the framework of the Capital Markets Board of Turkey (CMB) regulations, Bank Asya submitted a total of forty eight (48) material information disclosures in 2007.

The transfer of Group (B) shares, all of which are also registered, may be undertaken in accordance with the provisions of the Turkish Commercial Code, the Capital Market Law and the Central Registration Agency, without requiring the approval of the Board of Directors.

Company Internet Site and its Content The Asya Kat›l›m Bankas› A.fi. website can be accessed at www.bankasya.com.tr.

Any share transfer requiring a prior permit from the Banking Regulatory and Supervisory Agency, in pursuance with the Banking Law, is only valid only after the permit has been obtained. No share transfer shall be registered in the stock register until the necessary permit has been obtained. Any shareholder acquiring any shares in the Company without obtaining the required permit from the Authority cannot benefit from shareholding rights, apart from dividends. PUBLIC DISCLOSURE AND TRANSPARENCY Company Disclosure Policy In order to ensure that accurate, complete, intelligible and simultaneously accessible information is accessible to all shareholders and all stakeholders, including the general public, a disclosure policy has been drawn up by our Board of Directors in accordance with Corporate Governance Principles and approved in our Ordinary General Assembly held on 31 March 2006. To guarantee a flow of accurate and timely information, presentations are prepared in relation to financial statements announced quarterly, and made available to investors on the website, while the Investor Relations Group participates in investor meetings, during which information is provided concerning Bank Asya. In addition, all queries and requests from our investors and Shareholders are dealt with by phone and e-mail.

Our Bank's website covers general information regarding the Bank, as well as detailed description of the products offered. The website also offers the facility to carry out online banking transactions. The Investor Relations Group section in our website, prepared in Turkish and English, sets out the latest management structure, the most recent version of the articles of association, the invitation, agenda and minutes for the general assembly, annual reports, periodic financial statements and reports, and presentations, as well as material information disclosures. Utmost care is paid to keep the contents updated. Disclosure of Non-corporate Ultimate Shareholder(s) with a Controlling Interest Our Bank has an ownership structure consisting of many shareholders (247). None of our Shareholders has a shareholding interest in the Bank exceeding 10%. Related information is publicly disclosed on our website. Public Disclosure of Those Who May Have Access to Insider Information A separate list is not disclosed listing individuals who are in a position to access insider information. Instead, the members of the Board of Directors and senior executives who may be in such a position are named in annual reports and on the corporate website.

BANK ASYA ANNUAL REPORT 2007

73

STAKEHOLDERS Informing Stakeholders Stakeholders are regularly informed on matters deemed necessary, and a relevant organizational structure has been established to respond to requests for information from our shareholders, employees and customers. Owing to this organizational setup, the Shareholders, customers, employees and regulatory agencies are kept informed in an efficient manner. Stakeholder Participation in Management Our Bank has always encouraged the participation of our employees in management. Our employees are able to freely express all of their comments and proposals relating to our Bank's activities without requiring any approval mechanism, via the Asya Suggestion System (ASS) established within this framework. These comments and suggestions are communicated to the relevant managerial levels by the Organization, the Quality Management and System Development Departments, and those suggestions deemed appropriate are implemented. All suggestions are responded to, and some of the suggestions which are later implemented are rewarded on a biannual basis as a result of assessments made. A total of 1,898 suggestions were received from our employees in 2007, and 20 employees were rewarded for their respective suggestions. Human Resources Policy The basic principles of our human resources policy are stated below. • Drawing up quantitative and qualitative plans with regard to the personnel, hiring employees that meet the requirements of the positions and the corporate culture, • Maintaining maximum employee efficiency and productivity,

BANK ASYA ANNUAL REPORT 2007

74

• Offering all employees personal (career) development opportunities through an effective training plan and program; • Maintaining high levels of motivation among employees at all levels; • Protecting and further improving employees' material and moral rights; • Creating a work environment which will enhance the desire of all employees to keep working with their respective managers, and striving to further improve interpersonal relations; • Providing an environment which fosters open communication; • Supporting employees' professional, personal and social development by offering equal opportunities to all employees in career planning. The 360º performance management system is implemented at our Bank. In this system, the performances of our employees for a given period are appraised, and the results later shared with them. The annual “internal customer satisfaction survey” is aimed to measure employee and job satisfaction levels. Studies in respect to the establishment of the “HAY Job Evaluation and Wage System”, which were initiated in May 2007 in order to set up a wage system in our growing Bank, were completed and the new wage system will enter effect in 2008. During 2007, 9,338 people took part in a total of 15,747 hours of training sessions; in fact, 29% of our total working hours were allocated to training. An average of 11.36 days of training was provided for each employee. No complaints were made by our employees regarding discrimination, a subject which our Bank attaches utmost sensitivity to. Our Human Resources Department is responsible for managing relations with employees.

Relations with Customers and Suppliers Our Bank's employees; • communicate information accurately, completely and in a timely manner at every level of service and in every matter related to all the products and services provided to customers; • are obliged to keep in confidence, and ensure safekeeping of, any and all information and documents related to the customers, with the exception of disclosures related to persons and agencies legally and explicitly authorized to require information and documents; • regard a high quality of service as the prerequisite of fulfilling customer needs and expectations. Where possible, employees are required to use technological infrastructure and qualified human resources, which make up the two key constituents of this concept, to enable the Bank achieve a constant improvement in service quality; • do not discriminate on the basis of nationality, religion, financial and social status or gender in providing services to their customers; and • ensure that the process of identification of the target market and diversification of the organizational structure and the product array in accordance with the target audience, or adopting different approaches to customers in different risk groups does not construe discrimination against, or categorization among, customers. Name & Surname Tahsin TEKO⁄LU

Our Bank explores the reasons for customer complaints received via the systems established (Customer Demands Web Module, Asya Call Center and Satisfied Customer Line). The Bank employs necessary measures to prevent the recurrence of complaints, and informs employees as necessary in order to remedy and avoid repetition of faulty practices that lead to complaints. Social Responsibility In principle, our Bank grants donations and aid to benevolent foundations and associations, supports cultural publications, and sponsors congresses and conferences related to the general economy and banking, based on its commitment to social responsibility and subject to the requirements of applicable legislation. Our Bank nurtures a deep respect for human rights, civil rights and liberties, as well as the environment. The requirements arising from this respect are taken into consideration in each work process, while best efforts are spent to take necessary action materially and morally. No lawsuits have been lodged against the Bank on account of any environmental damage.

Position/Title Chairman of the Board of Directors (Member of Corporate Governance Committee)

Mustafa fievki KAVURMACI

Vice-Chairman of the Board of Directors (Member of Audit Committee)

Abdurrahman Selçuk BERKSAN

Member of the Board of Directors

Salih SARIGÜL

Member of the Board of Directors

Tacettin NEG‹fi

Member of the Board of Directors

Ünal KABACA

Member of the Board of Directors - CEO

Cemil ÖZDEM‹R

Member of the Board of Directors (Member of Audit and Corporate Governance Committees)

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The election to seats on our Bank's Board of Directors is governed by Article 32 of our articles of association and the provisions of the Banking Law. Qualifications of Board Members The qualifications required to be possessed by the members of banks' board of directors are set forth in the Banking Law, and our Bank conforms to these regulations in the election of its Board members. Mission, Vision and Strategic Goals of the Company The Board of Directors has explicitly and intelligibly formulated and publicly disclosed our Bank's vision and mission, which are set out in the Annual Report and corporate website. Our Bank's mission and vision are stated below: Our Mission: To develop and provide modern banking services with interest free banking principles, and meet our customers needs and expectations under our “different expectations require different solutions” approach, to provide a good return for our shareholders and to benefit the Turkish economy. Our Vision: To be an active, respectful and trustworthy bank that provides customer service in line with global standards.

The Internal Audit Department, Risk Management Department and the Inspection Department and related units established within this scope report to the Board of Directors. Authorities and Responsibilities of the Members of the Board of Directors and Executives The authorities and responsibilities of our Bank's members of the Board of Directors, the CEO and auditors are explicitly set forth by the Banking Law, applicable legislation, the Turkish Commercial Code and our Bank's articles of association. Operating Principles of the Board of Directors The Board of Directors meets as and when needed and/or upon the invitation of the Chairman. All members are entitled to call for a Board meeting by submitting a written request to the Chairman. The Board of Directors is required to hold at least four meetings within each fiscal year according to the articles of association. However, the Board of Directors at our Bank has traditionally met regularly at one or two week intervals (with some exceptions), and this continued in 2007. The Board of Directors meetings are held at the Company's head office. However, meetings may also be held in any place, city and/or country upon the approval of the majority of members.

The Board of Directors sets out the strategies that will guide our Bank's ongoing activities, and regularly monitors and steers the Bank's performance in achieving its strategic goals.

The Board of Directors meetings are carried out in line with the agenda that is distributed to the members in advance. The members and auditors may request the Chairman to include the topics they demand to be discussed.

Risk Management and Internal Audit Mechanism Our Bank has created an efficient internal audit and risk management system within the framework of the Banking Law in particular, and the provisions of applicable legislation governing our Bank's activities, in general.

The Board of Directors convenes on the basis of absolute majority of the total number of members and reaches decisions with a majority of members present in the meeting. Decisions concerning a proposal brought by a member may be made with the written consent of the

BANK ASYA ANNUAL REPORT 2007

76

members, unless negotiation is required by any other member. A unanimous vote is required for decisions to be reached without holding a meeting. Each Board member is entitled to one vote. Neither the Chairman nor the members may vote in proxy for other members not present in the meeting. If the consenting and dissenting votes for the matter under negotiation are equal, the relevant matter is set aside to be revisited in the following meeting. If the equality of votes remains unchanged in the following meeting, the matter under negotiation will be deemed rejected. Board of Directors resolutions are recorded on a daily basis in chronological and numerical order in a book bearing consecutive page numbers and certified pursuant to the provisions of the Turkish Commercial Code relating to books. The signatures of the members are executed underneath each resolution. Prohibited Businesses or competition with the Company The Chairman and the members of the Board of Directors are not permitted to conduct business, nor compete with the Company, in pursuance with Articles 334 and 335 of the Turkish Commercial Code. However, the General Assembly of Shareholders may grant permission to the Chairman and all or any one of the members of the Board of Directors to conduct such business and engage in competition with the Company. The matter in question is set forth in Article 42 of our Bank's articles of association. Code of Ethics Our Board of Directors is resolved to observe in our Bank's activities the “Participation Banks Association of

Turkey Code of Banking Ethics” drawn up by the Participation Banks Association of Turkey, of which we are a member. Numbers, Structures and Independence of Committees within the Board of Directors In pursuance with Article 24 of the Banking Law concerning the establishment of an audit committee and in accordance with other applicable legislation, our Bank set up an “Audit Committee” and “Corporate Governance Committee” based on the Board of Directors resolution dated February 2, 2006. Board members Mustafa fievki KAVURMACI and Cemil ÖZDEM‹R were elected as members of the Audit Committee. The Audit Committee consists of two members elected among non-executive Board members, with the objective of assisting the Board of Directors in the performance of its auditing and supervision activities. The Committee holds at least one meeting every quarter, and reports the auditing and risk management activities carried out within the framework of the relevant regulation to the Board of Directors. The committees which have been set up and which are operating at our Bank in line with the stipulations of applicable legislation, and which are constituted by the members of the Board of Directors, are presented below: 1. Audit Committee 2. Corporate Governance Committee 3. Credits Committee 4. Assets & Liabilities Management Committee Remuneration of the Board of Directors The Chairman and members of the Board of Directors are paid an attendance fee for each meeting they participate in; the amount and form of remuneration are determined by the General Assembly.

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Activities for which Support Services are Outsourced

Services Taken

Services Company

Issuance of Bank and Credit Cards

Plastikkart Ak›ll› Kart ‹letiflim Sistemleri San. ve Tic. A.fi. Eczac›bafl› E-Kart Elektronik Kart Sistemleri A.fi.

Printing of Cheque Books

Güzel Sanatlar Çek Bas›m Ltd. fiti.

Printing of Account Statements

Hobim Bilgi ‹fllem Hizmetleri A.fi.

Our Bank's Profit Distribution Policy In a meeting held on April 10, 2008, Bank Asya's Board of Directors passed a resolution as follows: of the net profit accrued according to our balance sheet dated December 31, 2007, • a portion worth TRY 4,275,179.65, constituting 75% of the profit generated from the sale of real estate registered in our Bank's assets has been transferred to a special fund account, in accordance with Article 5-e of the Corporate Tax Law no. 5520. • After setting aside the amounts as required by relevant legislation and our articles of association, the decision was taken to place the remaining profit in an extraordinary reserve instead of distributing it, and to present this decision for the approval of the next Ordinary General Assembly Meeting.

BANK ASYA ANNUAL REPORT 2007

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Matters Related to the General Assembly Asya Kat›l›m Bankas› A.fi. Agenda of the Ordinary General Assembly of Shareholders 1.

Opening and Election of the Chair,

2.

Authorizing the Chair to sign the Minutes of the Meeting,

3.

Reading and Discussing the 2007 Operating Report, Auditors Report and the Report of the Independent Auditing Organization,

4.

Examining, discussing and approving the balance sheet and statement of loss and profit and resolving to distribute or not to distribute the profit.

5.

Discharging of duties to the Directors and Auditors,

6.

Determining the remunerations and rights of the Directors and Auditors,

7.

Authorizing the Board of Directors to elect the High Advisory Board and to determine their remuneration.

8.

Discussing and resolving on the amendment to the following provisions of the Articles of Association of the Company: a. Article 6 titled “PRINCIPAL OFFICE AND BRANCHES”, b. Article 8 titled “CAPITAL”, c. Article 32 titled “FORMATION OF THE BOARD OF DIRECTORS” and Article 49 titled “AUDITING BOARD”.

9.

Providing our shareholders with information about the aids and donations made in 2007,

10. Authorizing the Board of Directors as required by the Articles 334 and 335 of the Turkish Commercial Code, 11. Presenting the establishment of the Independent Auditing Board elected by the Board of Directors for the independent audit, 12. Wishes and recommendations. Asya Kat›l›m Bankas› A.fi. Agenda of the General Meeting of the A Group Preferred Shareholders 1.

Opening and Election of the Chair,

2.

Authorizing the Chair to sign the Minutes of the Meeting,

3.

Discussing and resolving on the amendment to the following provisions of the Articles of Association of the Company: a. Article 8 titled “CAPITAL”, b. Article 32 titled “FORMATION OF THE BOARD OF DIRECTORS” and Article 49 titled “AUDITING BOARD”.

4.

Wishes and recommendations.

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Asya Kat›l›m Bankas› A.fi.

Financial Information

Summarized Statutory Auditors' Report TO THE GENERAL ASSEMBLY OF ASYA KATILIM BANKASI A.fi. SUMMARIZED STATUTORY AUDITORS' REPORT Of the company - Name - Headquarters - Capital - Principal Business Activity

: Asya Kat›l›m Bankas› A.fi. : Istanbul : TRY 300,000,000 : Activities that participation banks are allowed to engage in

Name, term of office, partnership/employee status of statutory auditors:

Ahmet ÇEL‹K, At›f B‹LG‹N and Ali AKBULUT - Term of office: 3 years - Auditors are company partners.

Number of Board of Directors meetings attended and number of auditors' meetings held:

Statutory auditors took part in at least two of the board meetings held each month and they held a meeting of their own the same day.

Scope, dates and results of examinations performed on the company's accounts, books, and documents:

The company's books of account were examined and cash counts were performed on June 15, 2007 and November 21, 2007 and it was ascertained that entries were all in order.

Number of cash counts performed at the company cashier's office in accordance with the requirements of subparagraph 4 of paragraph 1 of articles 353 of the Turkish Commercial Code and the conclusions reached:

Examinations were conducted at the end of each month and it was ascertained that all security instruments and negotiable instruments were present and conformed to records.

Charges or complaints of improprieties received and the actions taken:

No charges or complaints of improprieties were referred to us in 2007.

We have examined the accounts and transactions of the firm of Asya Kat›l›m Bankas› A.fi. for the period January 1, 2007 to December 31, 2007 for compliance with the requirements of the Turkish Commercial Code, the company's articles of incorporation, relevant laws and regulations, and generally accepted accounting principles and standards.

The income statement for the period January 1, 2007-December 31, 2007 accurately and truly reflects the results of business activities during the same period; the proposed distribution of profits is in compliance with the requirements of law and with the company's articles of incorporation.

In our opinion, the enclosed balance sheet issued as of December 31, 2007, the contents of which we certify, accurately reflects the true financial standing of the company on the same date; The income statement for 2007 accurately and truly reflects the results of business activities during the same period in compliance with principles and standards stated in regulations that are in effect.

We hereby recommend that the balance sheet and income statement be approved and that the members of the Board of Directors be acquitted of their fiduciary responsibilities.

Board of Statutory Auditors Ali AKBULUT

BANK ASYA ANNUAL REPORT 2007

Ahmet ÇEL‹K

82

At›f B‹LG‹N

5-Year Summary Financial Highlights Selected Assets (TRY Thousand) 2003

2004

2005

2006

2007

Liquid assets

236,751

442,566

382,656

939,645

1,382,702

Loans

725,210

1,286,336

2,090,521

3,060,181

4,609,665

Fixed assets*

154,881

32,143

61,499

75,027

115,727

1,166,546

1,861,905

2,610,406

4,179,189

6,260,048

Total assets

*Held-for-sale securities are included in the 2005 and 2006 figures

Selected Liabilities (TRY Thousand) 2003

2004

2005

2006

2007

974,654

1,561,475

2,148,595

3,200,655

4,697,750

877

27,278

14,307

126,696

312,921

100,511

150,717

296,168

632,519

853,856

-Paid-in capital

60,000

120,000

240,000

300,000

300,000

-Net period profit

28,258

36,749

94,761

146,351

221,337

1,166,546

1,861,905

2,610,406

4,179,189

6,260,048

Deposits Borrowings Shareholders' equity

Total liabilities

Income Statement (TRY Thousand) 2003

2004

2005

2006

2007

175,494

232,844

327,468

510,991

805,275

Profit share expenses

58,033

145,710

168,479

224,155

388,117

Income other than profit share income

56,258

83,326

126,025

208,118

297,671

141,490

132,742

181,319

298,704

441,928

0

-795

0

0

0

Profit/loss before taxation

32,229

36,923

103,695

196,250

272,901

Tax provisions

-3,971

-174

-8,934

-49,899

-51,564

Net period profit

28,258

36,749

94,761

146,351

221,337

Profit share income

Expenses other than profit share expenses Net monetary position income/loss

BANK ASYA ANNUAL REPORT 2007

83

Assessment of Financial Standing, Profitability, and Solvency At the end of 2007, Bank Asya's total assets had risen

On the other hand, the canalization of the additional

by 50% to TRY 6,260,000,000 and deposits received

resources derived from a 47% increase in deposits taken

through current and participation accounts had increased

in as well as the commission incomes generated from

by 47% to TRY 4,698,000,000. The total amount of

non-cash loans have served as important indicators of

loans made available by Bank Asya rose from TRY

the Bank's high profitability. Bank Asya's profit share

3,060,000,000 in 2006 to TRY 4,610,000,000 (not

income rose by 58% to TRY 805,000,000 and profit

including leasing figures) in 2007, implying an increase

share incomes earned by the Bank from loans increased

of 51%.

by 57% to approximately TRY 689,000,000. Bank Asya's net profit share incomes rose from TRY 286,836,000 to

Bank Asya recorded a 51.2% increase in its net profit

TRY 417,158,000 with an increase at 45%.

from the TRY 146,351,000 in 2006 to TRY 221,337,000 in 2007. In parallel with this strong surge in profit, the

A portion of the resources secured were invested in

Bank increased its equity by 35% from TRY 632,519,000

liquid assets, which rose by 47% YoY and contributed

to TRY 853,856,000.

strongly to the Bank's solvency.

BANK ASYA ANNUAL REPORT 2007

84

Audit Committee's Assessment of the Operation of Internal Control Systems During 2007, the Audit Committee met regularly with

The Board of Inspectors is responsible for performing

the officers of the Board of Inspectors, the Department

risk-focused audits of the Bank's headquarters units,

of Internal Control, and the Risk Management Department

branches, and subsidiaries subject to consolidation with

who report directly to the committee, and maintained a

the Bank and for giving senior management assurances

close watch on the activities of those units. The results

as necessary that the Bank's activities are being

of internal audit and risk management activities

conducted in accordance with the requirements of

undertaken to establish an effective internal audit and

relevant laws, regulations, and administrative provisions

risk management system throughout the Bank are

and in line with the Bank's own strategies, policies,

reported in an “Audit Committee Activity Report” that is

principles, and objectives and the requirement that

periodically submitted to the Board of Directors.

internal control and risk management systems are operating effectively and adequately. In addition to these

Internal audit and risk management findings derived from

duties, the Board of Inspectors is also responsible for

the activities of internal control system units are shared

conducting examinations and investigations at the Bank

with the Bank's senior management and discussed with

and in the bank subsidiaries that are subject to

appropriate senior managers and guidance is provided

consolidation with it.

as necessary to prevent risks and to correct and improve processes and practices.

The Risk Management Department has defined policies, practices, and procedures for the establishment of a

Moreover, as required by the Regulation on the Internal

suitable and adequate risk management system within

Systems of Banks, the Audit Committee held meetings

the Bank and for the management of risks arising from

with officers of the independent auditing organization

the Bank's activities. Such risks continue to be measured

and assessed the organization's independence in its

using advanced measurement models, controlled, and

relationships with the Bank, the adequacy of the resources

reported.

being allocated for the Bank's audit and the audit results. The staffing of internal control system units at the Bank The Department of Internal Control is responsible for

have been expanded with the addition of qualified

protecting the Bank's assets; for ensuring that the Bank's

personnel to ensure that the internal audit and risk

activities are conducted effectively, productively, and in

management system functions effectively.

accordance with the requirements of banking laws and regulations, the Bank's own policies and rules, and

The objective of these units' activities is to measure and

established banking practices; and for the reliability and

manage risk at the Bank and to discover undefined risks

integrity of the accounting and financial reporting systems

through internal audits and prevent the possible losses

and for the timeliness of the information secured from

they may cause.

them.

BANK ASYA ANNUAL REPORT 2007

85

Risk Management Policies Information about Risk Management Policies Implemented According to Risk Type

authorities. In addition, checks are carried out on whether

Bank Asya carries out its risk management activities in

Approaching lending as a process, Bank Asya keeps

compliance with the banking laws, regulations, and

view of risk/return balance and adequacy of guarantees

administrative provisions through its management policies

of the debtor or the counterparty. The internal credit

on credit risk, market risk, liquidity risk, operational risk,

rating system applied at our Bank, although still in the

reputation risk and strategy risk which are implemented

testing stage, is effectively used in credit decision making

upon the approval of the Bank's Board of Directors. The

mechanisms. This system has been configured in a way

policies provide the framework for the definition of the

suitable for being integrated with statistical models

risks that the Bank faces, or may likely face, and for their

allowing measurement and management of the credit

assessment, measurement, monitoring, control, and

risk. The analysis of financial standings of credit customers

reporting. Through these policies, the Bank ensures

whose loans are renewed and closely monitored is

management and mitigation of risks through a variety of

carried out in coordination with the units concerned.

the activities are conducted within specified limits.

measures and actions. Bank Asya regularly measures its market risk by means In the management of credit risk, the Bank sets out

of the “Standard Method” as required by law. Calculations

policies on the disbursement of loans and adjusting

related to this method are performed on a daily basis

credit risk in order to set credit limits for credit customers

(excluding liabilities to the BRSA) and the quantification

and counterparties, which is the most important issue.

results reached in this manner constitute a source of

In addition, the basic strategy is to maximize the Bank's

data for the internally developed model. The results of

risk-adjusted return by managing the credit risk to which

the model are reported to the Bank's senior management

the Bank may be exposed through early warning

on a daily basis and the Bank's portfolio is held subject

mechanisms focused on projecting risks even before

to re-assessment in current and possible market condition

they are realized. The Bank's credit risks are monitored

through daily scenario analyses and stress tests in order

periodically in two categories: “on-balance sheet” and

to prove the credibility of the model. The model's impacts

“off-balance sheet”. Features, compositions,

on the Bank's capital adequacy standard ratio are

developmental trends, and sectoral/regional risk

regularly analyzed and reported.

concentrations of the entire credit portfolio, whether on or off balance sheet, are set out and an assessment is

Our Bank complies with the limits defined for ratios which

undertaken to determine whether the provisions allocated

are deemed as legal obligations. These obligations are

would be sufficient. Moreover, the Bank's legal capital

continuously monitored by the Assets and Liabilities

adequacy ratio is closely monitored by means of scenario

Committee.

analysis, the results of which are forwarded to related

BANK ASYA ANNUAL REPORT 2007

86

While Bank Asya manages its liquidity risk within the

prepared “Human Resources Policy”, “Communication

ratios set by the “Regulation on the Measurement and

Networks Security Policy”, “Substitution Policy”, and

Assessment of Banks' Liquidity Adequacy” published

“Emergency and Business Continuity Plans” in a bid to

on November 1, 2006, it widely monitors liquidity risk

prevent operational risks and minimize their potential

within day-to-day risk management processes. For this

impacts, and carries out its activities in compliance with

purpose, the market conditions, breakdown of

these policies.

participation funds by currency and term, the costs and changes in total amounts of participation funds are all

As well as executing practices necessary for the

closely monitored. Our Bank's “Emergency Liquidity

management of financial risks, Bank Asya closely and

Plan” was also implemented as a contingency plan.

periodically monitors the potential impact of any kind of political, legal and global risks, which are not of financial

Bank Asya started reporting the principle amount subject

nature but which lead to various fluctuations in banking

to operation risk through the “Basic Indicator Method”

and the finance sector, under the title “External Risk”.

from June 1, 2007. The impact of this amount on the Bank's capital adequacy is examined through scenario

Risk assessments and standard ratio calculations arising

analysis, projecting the changes in the amount in the

from legal obligations are also performed on a

following years. Operational risk is measured by means

consolidated basis and thus, risks of those companies

of Standard and Alternative Standard Methods within

in which the Bank controls a stake of are also directly

the framework specified by the BRSA and is reported

monitored and managed and internal control system

within the Bank. If the required conditions are realized,

functions are deployed for subsidiaries as well.

it is planned that these methods will also be applied in legal reporting.

The Bank continues its projects and activities within the scope of compliance with Basel II criteria in line with the

Bank Asya continues to perform its classification of

directives of the BRSA. Activities to inform our personnel

instances of operational risks in line with the “Risk

and our credit customers in respect to the issue are still

Catalogue”, a risk catalogue prepared in compliance

in progress.

with Basel II criteria. If such instances produce meaningful statistical results, operational risk will start being measured through advanced statistical models. The Bank has

BANK ASYA ANNUAL REPORT 2007

87

Bank Asya Ratings Ratings assigned to Bank Asya by International Rating Agencies are summarized as follows:

FITCH RATINGS

24 September 2004

17 June 2005

3 October 2006

16 July 2007

Long-Term Foreign Currency Rating

B-

B

B

B

Long-Term Local Currency Rating

B-

B

B

B

Short-Term Foreign Currency Rating

B

B

B

B

Short-Term Local Currency Rating

B

B

B

B

BBB

BBB

BBB

BBB+

D/E

D

D

D

5

5

5

5

National Long-Term Rating Individual Rating Support Rating

2007 Rating

MOODY'S Financial Strength Rating

D

Long-Term Foreign Currency Deposits

B1/NP

Short-Term Foreign Currency Deposits

B1/NP

Long-Term Local Currency Deposits

Ba1/NP

Short-Term Local Currency Deposits

Ba1/NP

BANK ASYA ANNUAL REPORT 2007

88

Asya Kat›l›m Bankas› A.fi.

Unconsolidated Auditors' Report, Financial Statements and Notes to the Financial Statements

Asya Kat›l›m Bankas› A.fi. ve Mali Ortakl›¤› Unconsolidated Auditors' Report, Financial Statements and Notes to the Financial Statements

BANK ASYA ANNUAL REPORT 2007

90

Asya Kat›l›m Bankas› A.fi. Independent Auditors’ Report for the Year January 1, 2007 - December 31, 2007

BANK ASYA ANNUAL REPORT 2007

91

Asya Kat›l›m Bankas› A.fi. TheUnconsolidated Financial Report of Asya Kat›l›m Bankas› A.fi. for the Year Ended December 31, 2007

BANK ASYA ANNUAL REPORT 2007

92

BANK ASYA ANNUAL REPORT 2007

93

BANK ASYA ANNUAL REPORT 2007

94

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

95

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

96

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

97

Asya Kat›l›m Bankas› A.fi. Unconsolidated Balance Sheet as at 31 December 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

98

Asya Kat›l›m Bankas› A.fi. Unconsolidated Balance Sheet as at 31 December 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

99

Asya Kat›l›m Bankas› A.fi. Unconsolidated Statement of Off-Balance Sheet Contingencies Commitments (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

100

Asya Kat›l›m Bankas› A.fi. Unconsolidated Statement of Income (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

101

Asya Kat›l›m Bankas› A.fi. Statement of Profit and Loss Items Accounted Under Equity (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

102

Asya Kat›l›m Bankas› A.fi. Unconsolidated Statement of Changes in Shareholder’s Equity (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

103

Asya Kat›l›m Bankas› A.fi. Statements of Cash Flows (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

104

Asya Kat›l›m Bankas› A.fi. Profit Distribution Table (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

105

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

106

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

107

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

108

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

109

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

110

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

111

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

112

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

113

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

114

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

115

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

116

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

117

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

118

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

119

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

120

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

121

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

122

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

123

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

124

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

125

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

126

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

127

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

128

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

129

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

130

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

131

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

132

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

133

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

134

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

135

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

136

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

137

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

138

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

139

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

140

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

141

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

142

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

143

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

144

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

145

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

146

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

147

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

148

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

149

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

150

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

151

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

152

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

153

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

154

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

155

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

156

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

157

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

158

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

159

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

160

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

161

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

162

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

163

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

164

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

165

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

166

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

167

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

168

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

169

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

170

Asya Kat›l›m Bankas› A.fi. Notes to the Financial Statements for the Year Ended December 31. 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

171

Asya Kat›l›m Bankas› A.fi.

Consolidated Auditors' Report, Financial Statements and Notes to the Financial Statements

BANK ASYA ANNUAL REPORT 2007

91

Asya Kat›l›m Bankas› A.fi. ve Mali Ortakl›¤› Consolidated Auditors' Report, Financial Statements and Notes to the Financial Statements

BANK ASYA ANNUAL REPORT 2007

173

Asya Kat›l›m Bankas› A.fi. Independent Auditors’ Report for the Year January 1, 2007 - December 31, 2007

BANK ASYA ANNUAL REPORT 2007

174

Asya Kat›l›m Bankas› A.fi. The Consolidated Financial Report of Asya Kat›l›m Bankas› A.fi. for the Year Ended December 31, 2007

BANK ASYA ANNUAL REPORT 2007

175

BANK ASYA ANNUAL REPORT 2007

176

BANK ASYA ANNUAL REPORT 2007

177

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

178

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

179

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

180

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

181

Asya Kat›l›m Bankas› A.fi. Consolidated Balance Sheet (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

182

Asya Kat›l›m Bankas› A.fi. Consolidated Balance Sheet (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

183

Asya Kat›l›m Bankas› A.fi. Consolidated Statement of Off-Balance Sheet Contingencies and Commitments (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

184

Asya Kat›l›m Bankas› A.fi. Consolidated Statement of Income (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

185

Asya Kat›l›m Bankas› A.fi. Consolidated Statement of Profit and Loss Items Accounted Under Equity (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

186

Asya Kat›l›m Bankas› A.fi. Consolidated Statement of Changes in Shareholder’s Equity (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

187

Asya Kat›l›m Bankas› A.fi. Consolidated Statement of Cash Flows (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

188

Asya Kat›l›m Bankas› A.fi. Profit Distribution Table (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

189

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

190

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

191

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

192

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

193

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

194

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

195

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

196

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

197

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

198

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

199

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

200

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

201

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

202

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

203

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

204

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

205

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

206

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

207

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

208

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

209

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

210

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

211

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

212

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

213

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

214

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

215

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

216

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

217

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

218

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

219

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

220

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

221

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

222

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

223

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

224

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

225

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

226

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

227

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

228

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

229

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

230

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

231

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

232

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

233

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

234

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

235

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

236

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

237

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

238

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

239

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

240

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

241

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

242

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

243

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

244

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

245

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

246

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

247

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

248

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

249

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

250

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

251

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

252

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

253

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

254

Asya Kat›l›m Bankas› A.fi. Notes to the Consolitaded Financial Statements for the Year Ended December 31, 2007 (Amounts expressed in thousands of New Turkish Lira (”TRY”) unless otherwise stated.)

BANK ASYA ANNUAL REPORT 2007

255

Asya Kat›l›m Bankas› A.fi.

Directory

Head Office and Branches HEAD OFFICE:

Küçüksu Caddesi Akçakoca Sokak No:6 Ümraniye 34768 ‹stanbul Tel: (90 216) 633 50 00 Fax: (90 216) 633 50 50 Call Center: 444 4 888 Swift: ASYATRIS www.bankasya.com.tr [email protected] BANK ASYA BRANCHES IN ‹STANBUL ‹STANBUL ANATOLIAN SIDE Main Branch Küçüksu Cad. Akçakoca Sokak No:6 Ümraniye 34768 ‹stanbul Tel: (90 216) 633 69 19 Fax: (90 216) 632 13 50 Altunizade Branch K›s›kl› Cad. No:7 Altunizade 34662 ‹stanbul Tel: (90 216) 474 42 11 Fax: (90 216) 474 41 48 Çekmeköy Branch Alemda¤ Cad. Çaml›k Dura¤› Aflk›n Sk. No:19/B Çekmeköy 34760 ‹stanbul Tel: (90 216) 466 13 53 Fax: (90 216) 466 13 43 Dolayoba Branch Dolayoba Ç›nardere Mah. Akan Sk. No:19 Pendik 34895 ‹stanbul Tel: (90 216) 379 74 84 Fax: (90 216) 379 96 60 Erenköy Branch Sahray›cedit Mah. fi.Günaltay Cad. No:254 Erenköy 34738 ‹stanbul Tel: (90 216) 467 16 06 Fax: (90 216) 467 00 76 ‹mes Sanayi Branch ‹mes Sanayi Sitesi C Blok 301 Sk. No:3/A Yukar› Dudullu 34775 ‹stanbul Tel: (90 216) 540 24 24 Fax: (90 216) 540 51 70 Kad›köy Branch Tu¤lac›bafl› Mah. Poyraz Sk. No:16 Kad›köy 34710 ‹stanbul Tel: (90 216) 449 27 10 Fax: (90 216) 449 27 09 Kavac›k Branch Mihrabad Cad. Mart› ‹fl Merkezi No:238 Beykoz 34810 ‹stanbul Tel: (90 216) 537 19 70 Fax: (90 216) 425 02 77 Kozyata¤› Branch fiaflmaz Plaza Saniye Ermutlu Sk. No:4 Kozyata¤› 34742 ‹stanbul Tel: (90 216) 445 36 26 Fax: (90 216) 445 33 62 Maltepe Branch Ba¤dat Cad. No:211/A Maltepe 34844 ‹stanbul Tel: (90 216) 305 00 50 Fax: (90 216) 305 00 40 Pendik Branch Do¤u Mah. 23 Nisan Cad. No:59 Pendik 34895 ‹stanbul Tel: (90 216) 491 69 42 Fax: (90 216) 491 69 46 Sultanbeyli Branch Fatih Bulvar› No: 193 Sultanbeyli 34920 ‹stanbul Tel: (90 216) 419 90 00 Fax: (90 216) 419 21 10 Tepeüstü Branch Alemda¤ Cad. No:572/A Ümraniye 34776 ‹stanbul Tel: (90 216) 466 43 50 Fax: (90 216) 466 43 65

BANK ASYA ANNUAL REPORT 2007

258

Tuzla Branch Ayd›ntepe Mah. Irmak Sok. No:1 Tuzla 34947 ‹stanbul Tel: (90 216) 392 93 89 Fax: (90 216) 392 30 37 Tuzla Free Zone Branch Tuzla Serbest Bölgesi Hakk› Matrafl Cad. No:11 Tuzla 34950 ‹stanbul Tel: (90 216) 394 07 81 Fax: (90 216) 394 07 87 Ümraniye Branch Nam›k Kemal Mah. Sütçü Cad. No:2 Ümraniye 34762 ‹stanbul Tel: (90 216) 523 04 50 Fax: (90 216) 523 04 56 Üsküdar Branch Gülfem Hatun Mah. Uncular Cad. No:10/3 Üsküdar 34672 ‹stanbul Tel: (90 216) 532 55 55 Fax: (90 216) 532 90 90 ‹STANBUL EUROPEAN SIDE Avc›lar Branch E-5 Yolu Üzeri Merkez Mah. Engin Sk. No:1 Avc›lar 34310 ‹stanbul Tel: (90 212) 694 80 00 Fax: (90 212) 694 78 78 Ba¤c›lar Branch Merkez Mah. 1.Sk. No:9 Ba¤c›lar 34200 ‹stanbul Tel: (90 212) 435 78 00 Fax: (90 212) 435 75 57 Bahçelievler Branch Adnan Kahveci Bulvar› Tu¤cular Apt No:1 Bahçelievler 34180 ‹stanbul Tel: (90 212) 502 81 00 Fax: (90 212) 502 80 88 Bak›rköy Branch ‹ncirli Cad.No:113 Bak›rköy 34740 ‹stanbul Tel: (90 212) 466 05 06 Fax: (90 212) 466 37 00 Bayrampafla Branch Yenido¤an Mah. Numuneba¤lar› Cad. No:70 Bayrampafla 34030 ‹stanbul Tel: (90 212) 493 13 00 Fax: (90 212) 493 16 16 Befliktafl Branch Barbaros Bulvar› No:21/3 Befliktafl 34349 ‹stanbul Tel: (90 212) 227 95 00 Fax: (90 212) 227 22 40 Beylikdüzü Branch Beylikdüzü Mevkii E-5 Yolu Üzeri B.Çekmece 34500 ‹stanbul Tel: (90 212) 872 68 48 Fax: (90 212) 873 13 16 Ça¤layan Branch Vatan Cad. Avrasya ‹fl Merkezi No:6/A Ça¤layan - Ka¤›thane 34403 ‹stanbul Tel: (90 212) 291 80 08 Fax: (90 212) 291 66 64 Esenler Branch Menderes Mah. At›flalan› Cad. No15 Esenler 34230 ‹stanbul Tel: (90 212) 611 00 15 Fax: (90 212) 611 00 98

Fatih Branch Akdeniz Cad. No:11 Fatih 34260 ‹stanbul Tel: (90 212) 531 88 87 Fax: (90 212) 531 80 87 Florya Branch fienlikköy Mah. Florya Asfalt› No:76/3 Florya Bak›rköy 34153 ‹stanbul Tel: (90 212) 573 48 28 Fax: (90 212) 573 40 39 Gaziosmanpafla Branch Salihpafla Cad. fiirinler Sk. No:1 Gaziosmanpafla 34130 ‹stanbul Tel: (90 212) 418 49 99 Fax: (90 212) 418 47 70 Güneflli Branch Ba¤lar Mah. Koçman Cad. No:35 Ba¤c›lar 34540 ‹stanbul Tel: (90 212) 630 93 93 Fax: (90 212) 630 36 20 Had›mköy Branch Had›mköy Yolu Akça Burgaz Mevkii 5. Bölge Sanbir Bulvar› 12.Cad. No:1 B.Çekmece 34500 ‹stanbul Tel: (90 212) 886 26 10 Fax: (90 212) 886 26 25 ‹kitelli Branch ‹kitelli Organize Sanayi Bölgesi Atatürk Cad. No:137 ‹kitelli 34306 ‹stanbul Tel: (90 212) 549 81 41 Fax: (90 212) 549 81 40 ‹stoç Branch ‹stoç Tic.Merkezi 3. Ada No:85-87 Mahmutbey Ba¤c›lar 34217 ‹stanbul Tel: (90 212) 659 60 00 Fax: (90 212) 659 33 11 Karaköy Branch Kemeralt› Cad. Öney ‹fl Han› No:2 Karaköy 34425 ‹stanbul Tel: (90 212) 243 85 40 Fax: (90 212) 243 85 41 Kuyumcukent Branch 29 Ekim Cad. Kuyumcukent Sitesi 1.Kat No:533 Yenibosna Bahçelievler 34197 ‹stanbul Tel: (90 212) 603 12 40 Fax: (90 212) 603 12 49 Laleli Branch Mustafa Kemal Pafla Cad. No:86 Aksaray 34097 ‹stanbul Tel: (90 212) 458 77 77 Fax: (90 212) 458 78 58 Maslak Branch Ayaza¤a Mah. Büyükdere Cad. No:71/17 Maslak 34398 ‹stanbul Tel: (90 212) 286 09 32 Fax: (90 212) 328 16 68 Mecidiyeköy Branch Büyükdere Cad. No:61/1 Mecidiyeköy 34387 ‹stanbul Tel: (90 212) 356 37 00 Fax: (90 212) 356 17 17 Mercan Branch Mercan fiahende Sk. No:7 Eminönü 34116 ‹stanbul Tel: (90 212) 526 64 04 Fax: (90 212) 526 64 15 Merter Branch Fatih Cad. Mefle Sk. No:1 Merter 34010 ‹stanbul Tel: (90 212) 637 69 00 Fax: (90 212) 637 69 10 Sefaköy Branch Tevfik Bey Mah. Emrullah Efendi Cad. No:22 Sefaköy 34295 ‹stanbul Tel: (90 212) 541 68 08 Fax: (90 212) 541 78 44 Sultançiftli¤i Branch Eski Edirne Asfalt› No:281 Sultançiftli¤i G.O.P. 34270 ‹stanbul Tel: (90 212) 667 34 34 Fax: (90 212) 667 53 53

Sultanhamam Branch Sultanhamam Vas›f Ç›nar Cad. No:95 Eminönü 34430 ‹stanbul Tel: (90 212) 522 22 85

Fax: (90 212) 522 53 00

fiirinevler Branch Mareflal Fevzi Çakmak Cad. 3. Sok. No:3 fiirinevler 34188 ‹stanbul Tel: (90 212) 639 18 19

Fax: (90 212) 639 18 29

fiiflli Branch Halaskargazi Cad. No:204 fiiflli 34363 ‹stanbul Tel: (90 212) 296 70 05

Fax: (90 212) 296 70 06

Taksim Branch Gümüflsuyu Mah. Mete Cad. No:20 Beyo¤lu 34437 ‹stanbul Tel: (90 212) 244 80 50

Fax: (90 212) 244 80 25

Topçular Branch K›flla Cad. Kurto¤lu ‹fl Merkezi No:21/7 Eyüp 34055 ‹stanbul Tel: (90 212) 674 66 43

Fax: (90 212) 674 81 55

Topkap› Branch Merkezefendi Mah. Davutpafla Cad. No:119 Topkap› 34010 ‹stanbul Tel: (90 212) 482 51 65

Fax: (90 212) 483 20 33

Zeytinburnu Branch Prof. Muammer Aksoy Cad. No:41 Zeytinburnu 34020 ‹stanbul Tel: (90 212) 546 42 42

Fax: (90 212) 546 45 60

BANK ASYA BRANCHES IN ANATOLIA Adana Branch Atatürk Cad. Kayahan Apt. No:13/1 Seyhan 01060 Adana Tel: (90 322) 457 67 00

Fax: (90 322) 457 52 53

Adapazar› Branch Atatürk Bulvar› No:75 Adapazar› 54020 Sakarya Tel: (90 264) 281 39 10

Fax: (90 264) 281 39 01

Afyon Branch Yüzbafl› Agâh Cad. No:1 Diler ‹fl Merkezi 03200 Afyon Tel: (90 272) 214 50 00

Fax: (90 272) 214 33 33

Aksaray Branch Hac› Hasanl› Mah. 716. Sk. No:16 Aksaray Tel: (90 382) 212 74 36

Fax: (90 382) 213 15 70

ANKARA Ankara Branch K›z›lelma Mah. Anafartalar Cad. No:63 Ulus 06060 Ankara Tel: (90 312) 310 47 47

Fax: (90 312) 310 47 57

Balgat Branch Ehlibeyt Mah. Ceyhun Atuf Kansu Cad. No:100/T B Blok No:20 Balgat 06520 Ankara Tel: (90 312) 473 54 20

Fax: (90 312) 473 54 30

Çankaya Branch Güzeltepe Mah. Hofldere Cad. No: 222 Çankaya 06550 Ankara Tel: (90 312) 439 52 50

Fax: (90 312) 439 52 55

K›z›lay Branch Meflrutiyet Cad. No:16/A K›z›lay 06640 Ankara Tel: (90 312) 419 37 00

Fax: (90 312) 417 29 00

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K›z›lcahamam Branch Cengiz Topel Cad. No:5/17 K›z›lcahamam 06890 Ankara Tel: (90 312) 736 05 90 Fax: (90 312) 736 09 30 Ostim Branch Yeni Mahalle Yüzüncü Y›l Bulvar› No:17 Ostim 06370 Ankara Tel: (90 312) 354 84 74 Fax: (90 312) 354 40 05 Sincan Branch Atatürk Mah. Onur Sok. No:16/A Sincan 06930 Ankara Tel: (90 312) 276 81 10 Fax: (90 312) 276 81 15 Siteler Branch Demirhendek Cad. No:68 Siteler 06160 Ankara Tel: (90 312) 353 42 00 Fax: (90 312) 353 57 00 ANTALYA Alanya Branch Atatürk Cad. No:60 Karat Otel Alt› Alanya 07400 Antalya Tel: (90 242) 519 07 02 Fax: (90 242) 519 05 84 Antalya Branch Adnan Menderes Bulvar› Has ‹fl Merkezi No:9 07040 Antalya Tel: (90 242) 248 00 71 Fax: (90 242) 242 43 45 Aspendos Bulvar› Branch Tar›m Mah. Aspendos Bulvar› Olimpos Erüst ‹fl Merkezi B Blok No:4 07200 Antalya Tel: (90 242) 313 18 18 Fax: (90 242) 311 77 80 Kepez Branch Yükselifl Mah. Mithat Pafla Cad. Görkem Apt. No:22/1 07020 Antalya Tel: (90 242) 345 94 45 Fax: (90 242) 345 95 59 Ayd›n Branch ‹stiklal Cad. Ramazan Pafla Mah. No:9 09100 Ayd›n Tel: (90 256) 213 03 90 Fax: (90 256) 225 22 26 Bal›kesir Branch Alt›eylül Mah. K›z›lay Cad. No:6 10100 Bal›kesir Tel: (90 266) 239 66 13 Fax: (90 266) 239 68 40 Batman Branch Cumhuriyet Cad. Hamidiler Pasaj› No:1/2 72050 Batman Tel: (90 488) 212 07 95 Fax: (90 488) 212 07 22 BURSA Bursa Branch Fomara Mey. Haflim ‹flçan Cad. Ayt› Plaza No:2-3 Osmangazi 16220 Bursa Tel: (90 224) 225 14 80 Fax: (90 224) 225 14 89 Nilüfer Branch ‹hsaniye Mah. ‹zmir Yolu Kartallar Sok. Kartallar ‹fl Mer. No:13 Nilüfer 16130 Bursa Tel: (90 224) 249 49 09 Fax: (90 224) 249 45 99 Y›ld›r›m Branch Dua Ç›nar Mah. Ankara Cad. No:159 Y›ld›r›m 16270 Bursa Tel: (90 224) 360 11 11 Fax: (90 224) 362 63 43

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Çanakkale Branch Çarfl› Cad. No:131 17100 Çanakkale Tel: (90 286) 212 05 00 Fax: (90 286) 214 12 09 Çorum Branch ‹nönü Cad. No:51 19100 Çorum Tel: (90 364) 224 11 60 Fax: (90 364) 224 24 36 Denizli Branch Enver Pafla Cad. No:17 Bayramyeri 20100 Denizli Tel: (90 258) 241 87 88 Fax: (90 258) 241 35 70 Diyarbak›r Branch fianl›urfa Yolu 1.km. Serin Apt.C Blok No:77 21090 Diyarbak›r Tel: (90 412) 251 62 61 Fax: (90 412) 251 98 08 Elaz›¤ Branch R›zaiye Mah. Gazi Cad. No:2 23100 Elaz›¤ Tel: (90 424) 237 37 00 Fax: (90 424) 237 53 53 Ere¤li Branch Müftü Mah. Yukar› Sk. No:4 Karadeniz Ere¤li 67300 Zonguldak Tel: (90 372) 322 06 00 Fax: (90 372) 322 18 78 Erzurum Branch ‹stasyon Cad. No:20 25200 Erzurum Tel: (90 442) 213 59 10 Fax: (90 442) 213 59 20 Eskiflehir Branch fiair Fuzuli Cad. No:22 26010 Eskiflehir Tel: (90 222) 230 82 00 Fax: (90 222) 230 55 47 GAZ‹ANTEP Gatem Branch Gatem Mavi Ada 1.Blok No:5 fiehit Kamil 27020 Gaziantep Tel: (90 342) 238 37 37 Fax: (90 342) 238 37 77 Gaziantep Branch ‹ncilip›nar Mah. Nail Bilen Cad. No:10 fiehit Kamil 27020 Gaziantep Tel: (90 342) 215 17 79 Fax: (90 342) 215 17 93 HATAY Antakya Branch Yavuz Selim Cad. Zühtiye Ökten ‹flhan› No:6 Antakya 31040 Hatay Tel: (90 326) 225 13 83 Fax: (90 326) 225 26 42 ‹skenderun Branch Savafl Mah. Mareflal Fevzi Çakmak Cad. No:10 Modern ‹fl Han› ‹skenderun 31200 Hatay Tel: (90 326) 617 93 10 Fax: (90 326) 613 70 86 ‹ZM‹R Bornova Branch Fevzi Çakmak Cad. No:15/A Bornova 35040 ‹zmir Tel: (90 232) 343 16 16 Fax: (90 232) 343 71 20 ‹zmir Branch Gaziosmanpafla Bulvar› No:58/1-2 Çankaya 35240 ‹zmir Tel: (90 232) 445 37 10 Fax: (90 232) 445 62 21

Karaba¤lar Branch Yeflillik Cad. No:375 Karaba¤lar 35400 ‹zmir Tel: (90 232) 254 79 79 Fax: (90 232) 254 11 61 Karfl›yaka Branch Bahriye Üçok Bulvar› No:22 Karfl›yaka 35530 ‹zmir Tel: (90 232) 372 77 20 Fax: (90 232) 372 86 70 Yeniflehir Branch G›da Çarfl›s› 1203/1 Sk. No:25/E Ege Ticaret ‹fl Mrk. Yeniflehir 35110 ‹zmir Tel: (90 232) 457 93 83 Fax: (90 232) 457 97 96 Kahramanmarafl Branch ‹smet Pafla Mah. Yeni Hükümet Bulvar› No:8/A 46100 Kahramanmarafl Tel: (90 344) 221 59 00 Fax: (90 344) 221 59 60 Karabük Branch Bay›r Mah. Hürriyet Cad. No:116 78100 Karabük Tel: (90 370) 412 66 06 Fax: (90 370) 413 14 74 KAYSER‹ Kayseri Branch Cumhuriyet Mah. Nazmi Toker Cad. No:9 Melik Gazi 38020 Kayseri Tel: (90 352) 221 00 69 Fax: (90 352) 221 29 88 Sanayi Branch Keykubat Mah. Osman Kavuncu Cad. Y›lbo¤a Apt. No:405 Melik Gazi 38030 Kayseri Tel: (90 352) 332 40 41 Fax: (90 352) 331 77 76 KOCAEL‹ Gebze Çarfl› Branch Zübeyde Han›m Cad. No:37 Gebze 41400 Kocaeli Tel: (90 262) 645 02 80 Fax: (90 262) 645 02 93 Gebze Branch Hac›halil Mah. Körfez Cad. No:10 Gebze 41400 Kocaeli Tel: (90 262) 644 07 07 Fax: (90 262) 644 15 05 ‹zmit Branch Hürriyet Cad. Öztan Apt. No:169 41300 ‹zmit Tel: (90 262) 323 09 00 Fax: (90 262) 323 09 08 KONYA Büsan Branch Fevzi Çakmak Mah. Kosgeb Cad. Büsan San.Sitesi No:19 Karatay 42040 Konya Tel: (90 332) 345 46 46 Fax: (90 332) 345 46 55 Konya Branch Musallaba¤lar› Mah. Yeni ‹stanbul Cad. No:2 Selçuklu 42060 Konya Tel: (90 332) 238 95 05 Fax: (90 332) 238 95 13 Konya Ere¤li Branch An›t Cad. Çetinsu Apt. No:14 Ere¤li 42310 Konya Tel: (90 332) 712 40 40 Fax: (90 332) 712 42 32

Mevlana Branch Mevlana Cad. No:19 Karatay 42040 Konya Tel: (90 332) 350 08 80 Fax: (90 332) 353 30 80 Kütahya Branch Cumhuriyet Cad. Karakol Sk. Acar Apt. No:1/2 43030 Kütahya Tel: (90 274) 216 85 85 Fax: (90 274) 216 74 74 Malatya Branch Hüseyin Bey Mah. Atatürk Cad. No:23 44100 Malatya Tel: (90 422) 323 31 31 Fax: (90 422) 323 47 77 Manisa Subesi 1. Anafartalar Mah. Gaziosmanpafla Cad. No:40 45010 Manisa Tel: (90 236) 231 21 00 Fax: (90 236) 232 42 31 Mersin Branch Cami fierif Mah. Uray Cad. No:58 33060 Mersin Tel: (90 324) 238 77 10 Fax: (90 324) 238 81 66 Nevflehir Branch Aksaray Cad. No:17 50100 Nevflehir Tel: (90 384) 213 05 55 Fax: (90 384) 213 07 35 Osmaniye Branch ‹stiklal Mah. Atatürk Cad.No:150 80020 Osmaniye Tel: (90 328) 812 00 66 Fax: (90 328) 814 86 66 Rize Branch Tevfik ‹leri Caddesi No:1 53020 Rize Tel: (90 464) 217 09 82 Fax: (90 464) 217 09 77 Samsun Branch Kale Mah. Kaptana¤a Sk. No:3/A Cumhuriyet Meydan› 55030 Samsun Tel: (90 362) 432 51 52 Fax: (90 362) 435 57 07 Sivas Branch Cumhuriyet Cad. Afyon Sk. Aktafl Apt. No:3/B Sivas Tel: (90 346) 225 56 96 Fax: (90 346) 224 25 34 fianl›urfa Branch Yusufpafla Mah. Asfaltyol Cad. No:4 63100 fianl›urfa Tel: (90 414) 216 80 80 Fax: (90 414) 216 49 49 TEK‹RDA⁄ Çerkezköy Branch Gazi M.Kemal Pafla Mah. Atatürk Cad. No:82 Çerkezköy 59500 Tekirda¤ Tel: (90 282) 725 37 05 Fax: (90 282) 725 32 26 Çorlu Branch Cemaliye Mah. Omürtak Cad. No:236/1 Çorlu 59860 Tekirda¤ Tel: (90 282) 653 22 40 Fax: (90 282) 653 31 80 Trabzon Branch Kahramanmarafl Cad. No:51 61200 Trabzon Tel: (90 462) 321 93 00 Fax: (90 462) 321 94 70 Uflak Branch ‹stice Mah. ‹smet Pafla Cad. No:39 64100 Uflak Tel: (90 276) 224 54 56 Fax: (90 276) 224 61 30

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Van Branch Cumhuriyet Cad. (Vali Kona¤› Karfl›s›) 118/A-B Merkez 65100 Van Tel: (90 432) 210 23 40 Fax: (90 432) 214 02 90

BANK ASYA CORPORATE BRANCHES Anatolia Corporate Branch K›s›kl› Cad. Haluk Türksoy Sk. No:14 Altunizade 34662 ‹stanbul Tel: (90 216) 651 97 17 Fax: (90 216) 651 97 27 Capital City Corporate Branch Armada ‹fl Merkezi A Blok Kat 20 No:34 Yenimahalle 06520 Ankara Tel: (90 312) 219 18 34 Fax: (90 312) 219 18 34 Bosphorus Corporate Branch Büyükdere Cad. Maya Akar Center C Blok No:100-102 Kat:10A-11 Esentepe 34394 ‹stanbul Tel: (90 212) 272 50 04 Fax: (90 212) 272 60 69

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Aegean Corporate Branch Akdeniz Mah. Akdeniz Cad. No:1 Reyent ‹flhan› Kat:6 Konak 35210 ‹zmir Tel: (90 232) 441 47 40 Fax: (90 232) 441 52 04 Thrace Corporate Branch Güneflli Evren Mah. Koçman Cad. No:54 Kat:1 Güneflli 34212 ‹stanbul Tel: (90 212) 657 95 77 Fax: (90 212) 657 61 54 Uluda¤ Corporate Branch Haflim ‹flcan Cad. Tu¤sa ‹fl Merkezi Kat:1 Osmangazi 16030 Bursa Tel: (90 224) 224 95 65 Fax: (90 224) 221 86 14