Turkish Capital Markets June 2015

CONTENTS

2

1

Turkey at a Glance

2

Structure of the Turkish Financial Markets

3

TCMA

4

Turkish Capital Markets

5

Investment Institutions

6

Investor Profile

TURKEY AT A GLANCE

LOCATION

4

POLITICS

The Republic of Turkey, founded in 1923, is a parliamentary democracy. Latest general elections were held in June 2015. The composition of the Grand National Assembly is as follows, as of June 2015.

• • •

Justice and Development Party (Right)

132

Republican People's Party (Left) 80

258

80

5

Peoples' Democratic Party (Left) Nationalist Movement Party (Nationalist)

SOVEREIGN FOREIGN CURRENCY RATINGS (LONG TERM)

Investment-Grade Ratings Highest Credit Quality High Credit Quality Strong Payment Capacity Adequate Payment Capacity Speculative-Grade Ratings Speculative, Credit Risk Developing due to Economic Changes High Speculative, Credit Risk Present with Limited Margin Safety High Default Risk, Capacity Depending on Sustained Favourable Conditions Default Source: UNCTAD, Treasury

6

S&P

Moody's

Fitch

AAA AA A BBB

Aaa Aa A Baa

AAA AA A BBB-

BB+ BB BBB+ B BCCC+ CCC CCCCC C, D

Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3

BB+ BB BBB+ B BCCC+ CCC CCCCC C, D

Ca, C

The credit ratings of Turkey are highlighted in red.

POPULATION



Turkey has a population of 77.7 million as of end-2014.



The median age is 30.7.



Total labour force is 28.8 million, with a participation rate of 51%. Unemployment rate is 9.9% in 2014.



7

GROSS DOMESTIC PRODUCT (BILLION $)

Source:TurkStat

8

REAL GDP GROWTH

Source:TurkStat

9

WORLD GDP RANKINGS (2014, BILLION $)

Source: IMF-WEO April 2014, TurkStat

10

ANNUAL INFLATION (%) 20 CPI PPI 15

10

5

0

-5 2005

2006

Source:TurkStat

11

2007

2008

2009

2010

2011

2012

2013

2014

FISCAL BALANCE

Source:MoF

12

PUBLIC DEBT (EU DEFINED PUBLIC DEBT/GDP)

Source: Treasury

13

FOREIGN TRADE

Source: TurkStat

14

CURRENT ACCOUNT BALANCE

Source: CBRT

15

STRUCTURE OF THE TURKISH CAPITAL MARKETS

CAPITAL MARKETS BACKGROUND 1982: 1985: 1995: 1997: 2001: 2002: 2005: 2006: 2007: 2009: 2011: 2012: 2013: 2014: 2015:

17

Capital Markets Board established. Istanbul Stock Exchange (ISE) established. Settlement & Custody Bank formed. Istanbul Gold Exchange (IGE) established. Banks are forbidden to trade equities. TSPAKB (Association) established. Investors' Protection Fund established. Private pension system established. IFRS adopted for financial intermediaries and listed companies. Turkish Derivatives Exchange (TurkDex) established. Dematerialization of equities completed. Dematerialization of corporate bonds & mutual funds completed. Mortgage Law passed. Automated Disclosure Platform introduced. Istanbul International Financial Centre strategy announced. Forex regulation passed. New Capital Markets Law passed. ISE demutualised and merged with IGE under Borsa Istanbul. Borsa Istanbul announced strategic partnership with Nasdaq. Borsa Istanbul and TurkDex merged. The structure of the Association has changed and the membership base was expanded to cover asset management companies and investments trusts, in addition to brokerage firms and banks. The name of the Association was revised to Turkish Capital Markets Association. Electronic Fund Distribution Platform (TEFAS) began to operate.

REGULATORY STRUCTURE OF THE FINANCIAL MARKETS

Banking

Capital Markets

Insurance

Banking Regulation and Supervision Agency (BRSA)

Capital Markets Board (CMB)

Undersecretariat of Treasury

-Banks’ Association of Turkey -Participation Banks’ Association of Turkey -Association of Financial Institutions -Banks -Participation Banks -Savings Deposit Insurance Fund -Leasing Companies -Factoring Companies -Consumer Finance Companies -NPL Management Companies

18

-Turkish Capital Markets Association -Borsa Istanbul -Banks -Brokerage Firms -Asset Management Firms -Investment Trusts -Central Registry Agency -Settlement and Custody Bank -Capital Markets Licensing and Training Agency -Investor Compensation Center -Public and Listed Companies -Rating, Appraisal, Audit Firms

-Insurance Association of Turkey -Insurance Companies -Private Pension Companies -Private Pension Funds

CAPITAL MARKET INSTITUTIONS IN TURKEY

Capital Markets Board

TSPB (SRO)

Banks Brokerage Firms Inv. Trusts Asset Mgmt . Co.

19

Borsa Istanbul

Public Co. Listed Co.

Licensing and Training Agency

Rating Co. Ind. Audit Co.

Settlement & Custody Bank (Takasbank)

Central Registry Agency

CAPITAL MARKETS BOARD



Capital Markets Board (CMB) is the main regulatory and supervisory authority for the securities markets and institutions in Turkey.



The Board is responsible for the protection of rights and interests of investors.



The CMB’s jurisdiction areas:

20

o

Primary markets,

o

Secondary markets,

o

Investment services.

BORSA ISTANBUL



Istanbul Stock Exchange was established in 1985 as the only securities exchange in Turkey.



It became a joint stock company named Borsa Istanbul with the new Capital Markets Law in 2012.



The main markets and the traded securities are:

21

o

Equity Market: Shares, rights coupons, ETFs, warrants, certificates.

o

Emerging Companies Market: Shares of SMEs.

o

Debt Securities Market: Government bonds, Turkish eurobonds, corporate bonds, asset backed securities, repo-reverse repo transactions.

o

Derivatives Market: Single stock, equity index, precious metal, currency, commodity and power contract futures. Single stock, equity index and mini index options.

o

Precious Metals and Diamond Market: Gold, silver, platinum.

PRECIOUS METALS AND DIAMOND MARKET



Istanbul Gold Exchange merged with Borsa Istanbul as of end2012.



There are three sub-markets in the newly established Precious Metals And Diamond Markets:

22

o

Precious Metals Market: Spot transactions for gold, non-standard gold, silver and platinum.

o

Precious Metals Lending Market: Gold, silver and platinum.

o

Diamond and Precious Stones Market: Diamond and precious stones.

DERIVATIVES MARKET



Turkish Derivatives Exchange (TurkDex) was established as a private company in 2002 and became operational in 2005.



TurkDex merged with Borsa Istanbul as of August 5, 2013.



Contracts traded in the newly established Derivatives Market are as follows:

23

o

Currency futures (TL/US$, TL/€ and €/$)

o

Exchange Traded Funds futures

o

Equity index and single stock futures (BIST-30, 10 stocks)

o

Foreign indices futures (SASX-10)

o

Commodity futures (cotton, wheat, TL/gr gold, USD/ounce gold)

o

Energy futures (base load electricity)

o

Currency options (TL/US$)

o

Equity index and single stock options (BIST-30, mini BIST-30 and 10 stocks)

TAKASBANK (ISTANBUL SETTLEMENT AND CUSTODY BANK)



Takasbank was established in 1988 as a department of Borsa İstanbul. In 1992, it was incorporated as a non-deposit taking bank.



Takasbank is: o

The clearing and settlement centre for Borsa İstanbul,

o

The central counterparty (CCP) for Borsa İstanbul Futures & Options Market,

o

The national numbering agency of Turkey.



It operates a money market.



Takasbank operates the Securities Lending & Borrowing Market and acts as the CCP for this market.



The Bank allocates the legal entity identifier codes.



It operates the Electronic Fund Distribution Platform (TEFAS).

24

CENTRAL REGISTRY AGENCY



Central Registry Agency (CRA) was established in 2001 as a private company.



CRA is the only central depository for all dematerialized capital market instruments.



The dematerialization process is completed for equities, mutual funds, corporate bonds, warrants, certificates, asset backed securities and investors’ (excluding investment institutions) government debt holdings.

25

INVESTOR COMPENSATION CENTER



Investor Compensation Center was established in 2013 according to the new Law.



It covers settlement obligations of all capital market instruments, up to TL 100,000 (~$ 45,000) in 2015, in case of liquidation or bankruptcy of investment institutions.



All investment institutions have to be a member of the Investor Compensation Center.

26

ACTIVITIES OF INTERMEDIARIES

• Equity Trading • Leveraged FX trading BROKERAGE FIRMS

• Public Offering • Asset Management • Investment Consultancy

• Fixed Income Trading BANKS

27

• Derivatives Trading (exc. equity-linked products for banks)

TCMA

TCMA



Founded in April 2001.



It is a self-regulatory professional organization in the Turkish capital markets.



The structure of the Association was changed and its name was revised to Turkish Capital Market Association in 2014, in line with the new Capital Markets Law.



TCMA is under CMB supervision.



Association currently has 226 members; 96 brokerage firms, 43 banks, 40 portfolio management companies, 9 securities investment trusts, 31 real estate investment trusts and 7 venture capital investment trusts.

29

AIMS



Contribute to the development of the capital market



Meet the collective needs of members and facilitate solidarity among its members,



Prevent unfair competition between its members,



Enhance know-how in the sector.

30

FUNCTIONS



Establish code of ethics for the profession,



Establish professional rules and regulations,



Conduct research,



Offer educational programs,



Assist in the resolution of disputes,



Cooperate with related foreign institutions,



Engage in financial literacy activities.

31

STRUCTURE

Discipline Committee

Chairman (Board of Directors)

Board of Auditors

Secretary General

Assistant Secretary General

Research & Statistics

32

Corporate Communications

Assistant Secretary General

Assistant Secretary General

Training

Legal Affairs

Compliance & Surveillance

Human Resources, Administrative & Financial Affairs

Information Technologies

Membership Affairs

DEPARTMENTS

Compliance and Surveillance • •

Monitors and inspects the activities of the members. Monitors related regulations, makes proposals for changes in the existing or draft regulations.

Legal Affairs • •

• •

33

Provides legal advisory services. Conducts necessary legal investigations about the applications and complaints made to the Association. Keeps record of disciplinary action of the members. Assists in the resolution of disputes.

DEPARTMENTS

Research and Statistics •





34

Gathers statistical data on members and produces periodic reports. Publishes research to enhance the development of the capital markets. Represents the Association at international institutions.

Training •

Prepares training programs towards professional development of industry professionals.

Membership Affairs •

Examines applications for membership, keeps detailed records of members and provides advice on members to the Association.

DEPARTMENTS

Corporate Communications •



Manages media correspondence and public • relations. Promotes investor education activities of the Association. Information Technology



35

In charge of the IT backbone of the Association.

HR, Administrative and Financial Affairs Prepares training programs towards professional development of industry professionals.

INTERNATIONAL MEMBERSHIPS



Asia Securities Forum (ASF) member since 2009.



Asia Forum for Investor Education (AFIE) founding member since 2010.



Federation of Euro-Asian Stock Exchanges (FEAS) affiliate member since 2009.



International Council of Securities Associations (ICSA) member since 2006.



International Forum for Investor Education (IFIE) member since 2009.



International Organization of Securities Commissions (IOSCO) affiliate member since 2003.

36

PARTICIPATIONS

CENTRAL REGISTRY AGENCY The Association has 5% stake and holds one seat at the board of directors.

BORSA ISTANBUL The Association has 1.3% stake and holds one seat at the board of directors.

CAPITAL MARKETS LICENSING & TRAINING AGENCY The Association has 49% stake and holds 3 seats at the board of directors. 37

TURKISH CAPITAL MARKETS

BIST-100 INDEX & TRADING VOLUME

Point 100,000

Mn. $

5,000

Trading Volume

90,000

4,500

BIST-100 (TL)

80,000

4,000

70,000

3,500

60,000

3,000

50,000

2,500

40,000

2,000

30,000

1,500

20,000

1,000

10,000

500 0

Source: Borsa Istanbul 39

2015/01

2014/10

2014/07

2014/04

2014/01

2013/10

2013/07

2013/04

2013/01

2012/11

2012/08

2012/05

2012/02

2011/11

2011/08

2011/05

2011/03

2010/12

2010/09

2010/06

2010/03

2009/12

2009/09

2009/06

2009/03

2009/01

0

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION $)

Source: Borsa Istanbul 40

BREAKDOWN OF MARKET CAPITALIZATION

100%

Technology

90%

Financials

80%

Services Industrials

70% 60% 50% 40% 30% 20% 10% 0% 2010 Source: Borsa Istanbul

41

2011

2012

2013

2014 Only National Market.

DOMESTIC MARKET CAPITALIZATION (2014, BILLION $)

Source: WFE

42

WFE definition excluding investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange.

MARKET CAPITALIZATION/GDP (2014)

Source: WFE, IMF

43

NUMBER OF LISTED COMPANIES

Certificates Warrants ETF+Inv. Trusts Other Equities Equities

616

281

233

34 117

30

24

24

145

159

158

263

271

263

257

256

2011

2012

2013

2014

2015/03

175 38 74

Source: Borsa Istanbul

44

640

Equities: National Market, REITs, Venture Capital Investment Trusts Other Equities: Second National, Watchlist Companies, Emerging Companies Markets, Free Trade Platform

NUMBER OF LISTED COMPANIES (2014)

Source: WFE 45

WFE definition excluding investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange.

TRADING VOLUME OF BORSA ISTANBUL (BILLION $)

Source: Borsa Istanbul

46

EQUITY TRADING VOLUME (2014, BILLION $)

Source: WFE 47

WFE definition excluding investment funds, ETFs, unit trusts, holding companies with a mere business of holding shares on the exchange.

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2014)

Source: WFE 48

CONCENTRATION IN THE EQUITY MARKET

Market Capitalization

Source: Borsa Istanbul

49

Trading Volume

SECURITIES LENDING/BORROWING (MILLION $)

Source: Borsa Istanbul 50

SHORT SELLING 68

20 %

Short Selling Volume (Bn. $)

64

Share in Total Volume

60

18 %

16%

56

16 %

52

16% 48 14 %

44

12 % 40

12%

36

10 %

32

28 8%

24

6% 20

6%

16

5%

4%

12

8

2%

22

4

19

51

63

19 0%

0

2011 Source: Borsa Istanbul 51

2012

2013

2014

2015/03

FUTURES TRADING VOLUME (BILLION $)

Trading Volume (Billion. $)

74

No. of Contracts (Million) 62

59 53

21

265

226

220

199

56

2011

2012

2013

2014

2015/03

Source: Borsa Istanbul, TurkDex 52

Security expiry transactions are included.

.

TRADING VOLUME IN FUTURES MARKETS (2014, BILLION $)

Wiener Börse Oslo Athens ASX Group Colombia ICE (Canada) Warsaw Borsa Istanbul BSE India Malasysia DE Mexican DE Tokyo SE JSE Moscow Spain Euronext TAIFEX NSE-India Liffe Zhengzhou CE Hong Kong OMX Nordic ICE (US) Dalian CE-China Osaka Korea Shanghai FE LME-London Montreal CFFEX- China ASX SFE Derivatives Deutsche Börse ICE (Europe) BM&FBOVESPA CME Group

177

88 267 275 903

-

5,000

Source: WFE, TurkDex 53

10,000

15,000

20,000

25,000

30,000

35,000

40,000

NUMBER OF LISTED CORPORATE BONDS

436

454

299 192

42 2011

Source: WFE

54

2012

2013

2014

2015/03

NUMBER OF LISTED CORPORATE BONDS (2014)

Source: WFE 55

INVESTMENT INSTITUTIONS

INVESTMENT INSTITUTIONS

Source: TCMA 57

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION $) Brokerage Firms 1,017 76

Banks 986 54

963 75

574 53 941

932

888

521

138 124

2011

Source: Borsa Istanbul 58

2012

2013

2014

2015/03

REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION $)

Brokerage Firms

Banks 7,416 758

6,669

6,682

660

638

6,009

6,044

4,572 675 6,658

1,635

3,897

171 1464 2011 Source: Borsa Istanbul 59

2012

2013

2014

2015/03

EQUITY TRADING VOLUME OF INTERMEDIARIES (BN. $)

863

848

798 697

240 2011 Source: Borsa Istanbul 60

2012

2013

2014

2015/03

FUTURES TRADING VOLUME OF INVESTMENT INSTITUTIONS (BILLION $) Banks Derivatives Brokerage Firms Brokerage Firms

529 78

451

440

53

45

397

398

395

395

451

113 112 2011

2012

Source: Borsa Istanbul, TurkDex 61

2013

2014

2015/03

FOREX TRADING VOLUME (BILLION $)

7,693

Liquidity Provider Client

3,336 4,956

1,951

3,360

2,366

1,465 4,357

862 3,004 333

1,896

1,503

116 217 2011 Source: TCMA 62

2012

2013

2014

2015/03

CONCENTRATION IN TRADING VOLUMES

No. of Intermediaries

51+

21-50

11-20

1-10

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014

Equity Equity

2014

2014

2014

Fixed Fixed Income Income

Futures Futures

Forex

Source: Borsa Istanbul, TurkDex, TCMA 63

TOP 10 MEMBERS IN THE MARKETS (2014) Equity Market

Futures Market

Rank 1 2 3 4 5 6 7 8 9 10

Rank 1 2 3 4 5 6 7 8 9 10

Name İŞ YATIRIM MENKUL DEĞERLER A.Ş. YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. DENİZ YATIRIM MENKUL KIYMETLER A.Ş. AK YATIRIM MENKUL DEĞERLER A.Ş. GEDİK YATIRIM MENKUL DEĞERLER A.Ş. TEB YATIRIM MENKUL DEĞERLER A.Ş. MEKSA YATIRIM MENKUL DEĞERLER A.Ş. FİNANS YATIRIM MENKUL DEĞERLER A.Ş. BURGAN YATIRIM MENKUL DEĞERLER A.Ş. Total

8% 7% 7% 5% 4% 4% 4% 4% 4% 3% 100%

Fixed Income Market Rank 1 2 3 4 5 6 7 8 9 10

Name AKBANK T.A.Ş. GARANTİ BANKASI A.Ş. YAPI VE KREDİ BANKASI A.Ş. J.P. MORGAN CHASE BANK İSTANBUL HSBC BANK A.Ş. DENİZBANK A.Ş. CITIBANK A.Ş. TÜRKİYE İŞ BANKASI A.Ş. DEUTSCHE BANK A.Ş. TÜRK EKONOMİ BANKASI A.Ş. Total

Source: Borsa Istanbul 64

Name İŞ YATIRIM MENKUL DEĞERLER A.Ş. TEB YATIRIM MENKUL DEĞERLER A.Ş. GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. SANKO MENKUL DEĞERLER A.Ş. DENİZ YATIRIM MENKUL KIYMETLER A.Ş. GEDİK YATIRIM MENKUL DEĞERLER A.Ş. YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. DEUTSCHE SECURITIES MENKUL DEĞERLER A.Ş. AK YATIRIM MENKUL DEĞERLER A.Ş. Total

11% 11% 7% 5% 4% 4% 4% 4% 4% 3% 100%

Forex Market 29% 7% 7% 6% 6% 6% 4% 3% 3% 3% 100%

Rank 1 2 3 4 5 6 7 8 9 10

Name GCM MENKUL KIYMETLER A.Ş. İŞ YATIRIM MENKUL DEĞERLER A.Ş. ANADOLU YATIRIM MENKUL KIYMETLER A.Ş. IŞIK MENKUL DEĞERLER A.Ş. DESTEK MENKUL DEĞERLER A.Ş. İNTEGRAL MENKUL DEĞERLER A.Ş. ALB MENKUL DEĞERLER A.Ş. BURGAN YATIRIM MENKUL DEĞERLER A.Ş. GEDİK YATIRIM MENKUL DEĞERLER A.Ş. IKON MENKUL DEĞERLER A.Ş. Total

10% 9% 9% 8% 7% 7% 6% 6% 5% 4% 100%

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY) Privatization M&A

664

IPO&SPO-Equities

14 14

Corporate Actions

83

Other Consultancy

63

Bond Issuance 393 16 32 255 24 28

114

21 21 34 43 465

47

95 54

409

284 175

209 1 45 14 145

49 2011 Source: TCMA 65

2012

2013

2014

2015/03

INITIAL PUBLIC OFFERINGS IPO Volume (Mn. $) No. of IPOs 30 27

19 13

3 842

362

758

320

18

2011

2012

2013

2014

2015/03

Source: TCMA

66

PRIVATE DEBT SECURITIES ISSUES

Size of Private Debt Securities Issued (bn. $) No. of Private Debt Securities Issued

517

330

235 11

151

58

2011 Source: Borsa Istanbul

67

23

29

30

7

2012

2013

2014

2015/03

INSTITUTIONAL INVESTMENTS (BILLION $) Investment Trusts Venture Capital Inv. Trusts REITs Equity Funds Fixed Income Funds Pension Funds

41

39

37

36 9

7

30

9 9

6 14 21

16

13

11

12

2012

2013

15

16 8

8

2010

2011

Source: TCMA 68

2014

ASSET MANAGEMENT BY BROKERAGE FIRMS Assets Under Management (Mn. $) No. of Investors

3,096 2,765 2,529

2,937

1,887

1,938

2,259

2,126

2,569

2,310

2011

2012

2013

2014

2015/03

Source: TCMA 69

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES Assets Under Management (Mn. $) No. of Investors 2,630 2,421

2,118

2,263

1,745

25,333

31,710

30,108

31,671

32,572

2011

2012

2013

2014

2015/03

Source: CMB

70

MARGIN TRADING Outstanding Loan Size (Mn. $) No. of Investors

11,462

10,964 10,417 10,195

9,914

437

598

759

493

473

2011

2012

2013

2014

2015/03

Source: TCMA 71

BROKERAGE FIRMS’ BRANCH NETWORK

Bank Branches

Branches

Rep. Offices

7,288

7,174 150 6,911

6,686

7,242 152

153

161

159 6,950

7,071

7,026

2014

2015/03

6,684 6,466

2011 Source: TCMA 72

2012

2013

BROKERAGE FIRMS’ EMPLOYEES

5,843 5,657 5,480 5,258 5,093

2011 Source: TCMA 73

2012

2013

2014

2015/03

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

631 610

574

2013 Source: TCMA 74

2014

2015/03

BANKS’ EMPLOYEES

195,271

214,226

201,453

216,912

217,743

2011

2012

2013

2014

2015/03

Source: TCMA 75

BALANCE SHEET OF BROKERAGE FIRMS (MILLION $)

Current Assets

Total Assets

6,416 5,847

Shareholders' Equity

6,566

6,503 6,076

6,085

5,496

5,881

4,261 3,868

1,466

2011

Source: TCMA 76

1,711

2012

1,566

2013

1,572

2014

1,417

2015/03

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION $)

Total Revenues Operating Profit 809

Net Profit

733

694 626

278

248

212

182

162 70

2011 Source: TCMA

77

2012

119

2013

231 170 83

2014

100

2015/03

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES

Others

Corporate Finance

21%

Proprietary Trading Profits

15% 8%

8% 3%

12%

62%

61%

2011

2012

Source: TCMA 78

Brokerage Commissions

18%

17%

10% 4%

8%

15% 5% 11%

15%

64% 57%

2013

Asset Management

2014

66%

2015/03

BALANCE SHEET OF PORTFOLIO MANAGEMENT COMPANIES (THOUSAND $)

Current Assets

Non Current Assets

Total Assets

175,995 162,431 149,783

156,141 142,120

12,648

15,887

14,021

2013

2014

2015/03

Source: TCMA 79

160,108

INCOME STATEMENT OF PORTFOLIO MANAGEMENT COMPANIES (THOUSAND $)

Total Revenues Operating Profit

107,683

104,887

34,133

31,033

Net Profit

31,606 31,676

27,003 9,022

2013

Source: TCMA

80

2014

2015/03

8,531

BREAKDOWN OF PORTFOLIO MANAGEMENT COMPANIES’ REVENUES Investmet Consultancy Pension Fund Asset Management Fund Sales 13%

11%

25%

30%

59%

58%

2013

2014

Source: TCMA 81

Asset management Mutual Fund Asset Managemnet

9%

29%

62%

2015/03

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION $)

675 120

523 107

401

2010

Equities

107

Fixed Income

121

106

114

Deposits

434

444

2012

2013

81

368

2011

Source: BRSA, CRA, TCMA estimates 83

92

673

523 74

71

642

452

2014

SAVINGS OF DOMESTIC INVESTORS

8%

7%

8%

7%

7%

10%

11%

12%

11%

12%

Equities

Fixed Income

Deposits

83%

83%

80%

82%

81%

2010

2011

2012

2013

2014

Source: BRSA, CRA, TCMA estimates 84

SAVINGS OF FOREIGN INVESTORS

Equities

48%

50%

43%

47%

66%

Deposits

38% 36%

38%

35%

24%

10% 2010

15%

12%

2011

2012

Source: BRSA, CRA, TCMA estimates 85

Fixed Income

19%

18%

2013

2014

NUMBER OF EQUITY INVESTORS (MILLION)

1.10

1.09

2011

2012

1.11

1.04

2010

Source: CRA, Takasbank 86

2013

1.08

2014

BREAKDOWN OF MARKET CAPITALIZATION (BILLION $)

Privately Held

Foreigners' Portfolio

Domestics' Portfolio

311

308

270 237 200

202

191 176 145

128

79

71 46

59

36

28

41

34

34

2010

2011

2012

2013

2014

Source: CRA, Takasbank 87

57

SHARE OF FOREIGN INVESTORS MCap

Vol.

80%

32%

Share in Free Float Mcap

Share in Trading Volume

70%

28%

60%

24%

50%

20%

40%

16%

30%

12%

20%

8%

10%

4%

0%

0% 2010 Source: CRA, Borsa Istanbul

88

2011

2012

2013

2014

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES 100% For. Institutional

90% 80%

For. Corporation

70% 60%

For. Individual

50% Dom. Institutional

40% 30%

Dom. Corporation

20% 10%

Dom. Individual

0% 2010

Source: CRA

89

2011

2012

2013

2014

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES

100%

For. Institutional

90% 80%

For. Corporation

70% 60%

For. Individual

50%

Dom. Institutional

40% 30%

Dom. Corporation

20%

Dom. Individual

10% 0% 2011 Source: TCMA 90

2012

2013

2014

2015/03

WARRANT INVESTORS

Source: CRA

91

CORPORATE BOND INVESTORS

Source: CRA 92

MUTUAL FUND INVESTORS

Source: CRA 93

PENSION FUND INVESTORS

Source: CRA

94

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES (BROKERAGE FIRMS ONLY) 100%

For. Institutional

90% 80%

For. Corporation

70% For. Individual

60% 50%

Dom. Institutional

40% 30%

Dom. Corporation

20% Dom. Individual

10% 0% 2011 Source: TCMA 95

2012

2013

2014

2015/03

FOREX TRADING VOLUME OF BROKERAGE FIRMS

100% For. Institutional 80%

For. Corporation

60%

For. Individual

Dom. Institutional

40%

Dom. Corporation 20% Dom. Individual 0% 2011

Source: TCMA 96

2012

2013

2014

2015/03

Thank You