31 December, 2014 1

Table of Contents 

Turkish Economy



Tekstilbank Overview



Standing Strategy



Financial Highlights



Summary Balance Sheet and Income Statement



Financial Performance



Credit Ratings

2

Turkish Economy 

Turkish Economy Overview



Turkish Banking Sector Overview

3

Turkish Economy Overview 

11.9 11.5

9.7

8.8

0.2

GDP Growth (%)

8.6

7.6

39.9

42.3

40

39.1

36.3 33.1

36.2

4.6

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014P 2015P

3.5

Per Capita Income (000 $)

-0.6

-1.0 -3.4

-2.1

2015P

2013

2009

2008

2006

2007

Non-Energy deficit/ GDP (%)

100

80

90

70 60

60

50

50

40

40

30

30

20

20

31.8

2015P

59.6 52.7 46.5 46.1

5.8 3.0

2.0

2.0 1.6 0.1

70

Maastricht Crirterion: 60%

2013

7.0

1.31.5

C/A deficit/ GDP (%)

2014P

10.4

6.4 5.4

3.5

80

67.7

10.9 10.510.510.810.5 10.0

7.9

6.0

-6.0

Budget Deficit/ GDP (%)

77.9 74

9.2

-1.9

2005

2015P

2013

1.9 1.1 2014P

2.0 2.2

2012

2011

2010

1.3 2009

2008

1.6 1.8 2007

2006

0.6

2005

2004

2003

2002

2001

2000

2014P

2012

2010

2008

2006

2004

2002

2000

1.1

-4.8

0.4 0.7

0.3

2004

3.6

2002

5.5

5.2

6.2

6.0 5.85.5

2.5 3.6

2001

0.7

-5.7

4.4

3.7

2003

7.9

2000

4.0 3.3 4.0

Government Debt Stock/ GDP (%, according to EU standards)

10

10

0

0

2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014

4.7

2012

8.5

6.9

6.2 5.3

2.2

4.1

External deficit

2014P

Fiscal policy & debt outlook

2010

9.2

9.48.4 6.8



2011

Growth performance

Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4



L/T Inflows

S/T Inflows

C/A Deficit (12-month cumulative, US$bn, right)

4

Inflation

68.5

39.0 29.7

18.4 9.3 7.7 9.7 8.4 10.1 6.5 6.4 10.4 6.2 7.4 8.2 6.3

09/05/08 06/08/08 03/11/08 31/01/09 30/04/09 28/07/09 25/10/09 22/01/10 21/04/10 19/07/10 16/10/10 13/01/11 12/04/11 10/07/11 07/10/11 04/01/12 02/04/12 30/06/12 27/09/12 25/12/12 24/03/13 21/06/13 18/09/13 16/12/13 15/03/14 12/06/14 09/09/14 07/12/14 06/03/15

2015E

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

Turkish Banking Sector Overview

 CDS

900

800

700

600

500

400

300

200

100

5

Tekstilbank Overview



History and Ownership



GSD Holding



Shareholder Support



Branch Network

6

History and Ownership Founded by Akın Tekstil, a major textile manufacturer

1986

1990

ICBC has applied to BRSA & Turkish GSD Holding became Competition Authority for the major shareholder the acquisition of 75.5% by increasing its stake stake from GSD Holding to 75% on 6th of August

GSD Foreign Trade Co. acquired 30% stake

1992

IPO took place. Shares have been traded on ISE since 1990

1996

2002

GSD Foreign Trade Co. was restructured and renamed as GSD Holding

2014

2014

SPA has been signed between GSD Holding and the Industrial and Commercial Bank of China (ICBC) on 29th of April

2014

China Banking Regulatory Commission had approved the acquisition

Shareholder Structure Free Float 24.5% GSD Holding 75.5%

2015

Turkish Competition Authority approved the acquisition on 20th of August

* The Bank has sold its headquarters building in September 2013

“Tekstilbank is a mid-size boutique bank offering customized solutions with high service quality...”

Ranking (asset size): #18*

# of branches: 44

# of employees: 852 ** * Among private deposit banks as at 30 September 2014 ** As at 31 December 2014

7

GSD Holding: Major Shareholder

GSD Holding Strategic guidance for GSD Group Free Float: 71.8%

Tekstilbank 75.5% GSD Holding, 24.5% Free Float

Tekstil Securities Brokerage and investment banking arm 100% Tekstilbank

GSD Bank Non-depository bank. Niche business in corporate lending, trade finance & fund mgmt 100% GSD Holding

GSD Faktoring A member of the International Factors Group and the Factors Chain International 88.0% GSD Holding

GSD Marin Operating in ship construction and management 54.45% GSD Holding, 45.54% Free Float

8

Shareholder Support: The Long Term Commitment



Tekstilbank’s paid-in capital base ;

420

420

300

145

TL mio

123 80

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

9

Branch Network 

Branches are predominantly located in the western regions, which account for the majority of Türkiye's GDP generation.



Financial Services branch in Berlin, Germany, established in 1995, that handles mainly remittances business. Istanbul branches Anatolian branches Free-Zone branch Domestic Network 22

1

Istanbul

Samsun

1 Trabzon

1 1

: 21 : 22 : 1 : 44

Bursa

3

1

Balıkesir

Ankara Eskişehir

1

3

1 1

Uşak

Kayseri

İzmir Konya

1

1

Aydın

Denizli

1 Muğla

1

1 Antalya

Adana

1

2

Mersin Hatay

Number of branches

10

Standing Strategy 

Standing Strategy

11

Standing Strategy...

Attending to high growth environment, also bearing in mind that uncertainty persists in global environment

Focal points :

Conservative growth approach

Extensive focus on collections Maintaining high level of CAR

12

Financial Highlights

13

Financial Highlights of 2014 YoY Growth in Balance Sheet (%)

 Assets  Cash Loans (TL)  Deposits (TL)  SHE

-4.9% 9.7% 8.4% 2.6%

Selected Ratios (%) 

Loans / Assets

75.5%



Total CAR

18.9%



Deposits / Assets

63.9 %



Free Equity

85.9%



Funds Borrowed / Assets

9.5%



IEA

86.1%



SHE / Assets

16.9%



NPL

4.2%



Corporate&Commercial Loans 85.8%



Reserve Coverage



Consumer Loans



NIM

13.2%

90.6% 4.2%

14

Summary Balance Sheet and Income Statement 

Balance Sheet



Income Statement

15

Balance Sheet

TL mio

FY 2012

FY 2013

FY 2014

YoY%

Cash and Banks Total Securities Total Cash Loans Fixed Assets & Subsidiaries Others Total Assets

483 335 2,627 108 131 3,684

527 405 2,786 26 110 3,854

518 219 2,765 40 122 3,664

-1.7% -45.9% -0.8% 53.8% 10.9% -4.9%

Deposits* Interbank & Money Market* Borrowings Others SHE Total Liabilities & SHE

2,657 65 249 138 575 3,684

2,522 259 341 128 604 3,854

2,342 229 348 125 620 3,664

-7.1% -11.6% 2.1% -2.3% 2.6% -4.9%

* Bank deposits are included in Interbank & Money Market rather than Deposits

16

Income Statement TL mio

FY 2012

FY 2013

FY 2014

YoY %

340.8 301.8 36.8 2.2 203.3 168.1 35.2 137.5 4.3 141.8 10.6 21.2 13.1 186.7 40.0 113.3 33.4 7.3 26.1

295.4 260.9 32.2 2.3 167.3 130.1 37.2 128.1 2.5 130.6 6.7 24.0 63.5 224.8 57.4 118.3 49.1 3.8 45.3

343.6 298.3 38.9 6.3 206.1 134.3 71.8 137.4 3.6 141.0 14.7 18.5 16.2 190.4 39.6 134.9 15.9 3.1 12.8

16% 14% 21% 174% 23% 3% 93% 7% 44% 8% 119% -23% -74% -15% -31% 14% -68% -18% -72%

Interest Income Loans Securities Others Interest Expense (-) Deposits Other Borrowings Net Interest Income Net FX Gain (Loss)* Adj. Net Interest Income Net Trading Income (Loss)* Net Fees & Commissions Other Operating Income** Total Operating Income Provisions (-) Opex (-) Profit Before Tax Tax (-) Net Income(***)

* Foreign exchange gain/loss resulted from derivatives are included in Net FX Gain (Loss), not in Net Trading Income (Loss) ** Including TL 2.1 mio reversal of general loan provision *** In 2013 Q3, sales of Headquarters building resulted with TL 41.2 mio net gain

17

Financial Performance 

Balance Sheet



Loan Portfolio



Retail Loans



Deposits



Related Party Exposure



Capital Base



Asset Quality

18

Balance Sheet 

Composition of Assets

YoY: -4.9%

3,684

3,854

IEA: 84%

IEA: 85%

IEA: 86%

14%

15%

17%

5%

3%

72%

2%

71%

75% 6%

11%

9%

2014

2013

2012

Loans



3,664

Securities

Other IEA

Non-IEA

Total Assets (TL mio)

Composition of Liabilities & SHE YoY: 2.6%

575

604

3%

620

3%

16%

3%

16%

9%

17%

65%

72%

64%

16%

16%

2013

2012 Deposits

Funds Borrowed & Interbank

2014 Others

Shareholders' Equity (TL mio)

19

Loan Portfolio 

Cash Loans YoY: -0.8 %

2,786

2,627 31%

30%

69%

22%

70%

2012

78%

2013 Turkish Lira



2,765

FX

2014 Total (TL mio)

Non-Cash Loans YoY: -30%

1,248

1,211

850

44% 52%

51%

48%

56%

49%

2012

2013

Turkish Lira

FX

2014 Total (TL mio)

20

Loan Portfolio 

Breakdown By Borrower 86%

86%

86%

13%

13%

2012

1%

2013 Corporate / Commercial Loans



13%

1%

1%

2014

Consumer Loans

Credit Cards

Breakdown by Industrial – Top 10 Sectors 10.9%

11.0%

Cash Loans

10.5%

Non-Cash Loans 7.9% 6.1% 4.0% 2.4% 1.5% 0.0%

4.6% 3.7%

3.6% 1.4%

1.7% 0.5%

2.8% 3.1% 0.8% 1.1% 1.0%

* Commerce represents wholesale and retail commerce activities including motor vehicles



Tekstilbank has a well-diversified client base across different industries and regions enabling better risk control and higher profitability.



Credit policies do not favour any business line or company type.



Financial structure & cash generation ability of the companies, along with morality of the owners and value of collateral compose an integral part of the evaluation criteria. 21

Retail Loans YoY: -0.2%

384

394

9%

7%

8%

394

9%

4%

7%

29%

34%

41% 42%

50% 60%

2012

2013

Credit Cards

Housing Loans

General Pruposes & Consumer Loans

2014

Auto Loans*

Total (TL mio)

* Specialized loans granted to farmers for vehicle purchases are classified in retail loans

 As required by BDDK Resolution, the mortgage loans has a loan to value ratio of 75%.  The average maturity of mortgage loans is approximately 6 – 7 years.

22

Deposits  TL – FX Composition YoY: -7.1%

2,657

2,522

2,342

43%

42% 50% 50%

57%

58%

2012

2013 Turkish Lira, TL mio

2014

FX, USD mio

Total (TL mio)

 Savings – Commercial & Others Composition

42%

38% 41%

58%

59%

2012

62%

2014

2013 Saving Deposits

Commercial & Others

23

Insignificant Related Party Exposure  Group Total Risk / Total Risk

 Group Net Exposure / Total Exposure 1.9%

2.5%

2.3%

2.2%

0.0%

0.5%

0.0% 2012

2013

Tekstilbank

0.7%

0.5%

1.9%

2012

2014

2013

2014

-0.9%

Market Average(*)

-1.4% Total Exposure 



Group Cash Loans / Cash Loans

Net Exposure

Group Non-Cash Loans / Non-Cash Loans 5.1%

4.6%

4.0% 1.7% 0.0%

1.7% 0.7%

2012

2013

Tekstilbank

2.5% 1.6% 2014

Market Average(*)

0.1%

0.0%

2012

2013

Tekstilbank

0.1% 2014

Market Average(*)

(*) Market Average is based on 30 September 2014 data 24

Strong Capital Base 

Capital Adequacy Ratio



Free Equity / Equity 88.1%

Total CAR Ratio

18.91%

16.47%

Free Equity, TL mio 85.9%

73.9%

17.37% 532

0.61%

533

0.61%

1.29%

425

15.18%

2012

18.30% 16.76%

2013*

Tier 1

2014**

2012

2013

2014

Tier 2

*Calculated according to new BRSA regulations, in line with Basel II ** Equity calculation amended by BRSA for preparation to Basel III by adapting common equity (going concern capital)

25

Asset Quality  NPL / Total Cash & Non-Cash Loans (%)

4.3%

4.2%

3.4%

2.2%

2.0%

2012

2.1%

2013

Tekstilbank

2014

Market Average

 Reserve Coverage (Including portfolio reserves)

92%

96%

2012

2013

91% 2014

26

Credit Ratings 

Fitch Ratings

27

Credit Ratings Fitch Ratings

LONG – TERM IDR

OUTLOOK

(March 2015) LOCAL CURRENCY

B+

FOREIGN CURRENCY

B+

Positive*

A (tur)

NATIONAL

Reaffirmed Tekstilbank due to the facts that ;

    

Adequate capital ratios Short term & diversified loan book Low leverage Deposit-based funding Limited market risk

* As of 24 March 2015, Fitch stated that ‘If the acquisition is succcesful, Tekstilbank will likely see a multi-notch upgrade of its IDRs, National Rating and Support Rating. The Long-term foreign currency IDR will most likely be upgraded to 'BBB', Turkey's Country Ceiling.’ 28

Credit Ratings

29

Your Contacts Mr. D. Halit DOVER Assistant General Manager Global Head of International Relations Group +90 212 335 5295 . [email protected] Ms. Damlanur METIN Platform Assistant +90 212 335 5427 Ms. Irem YURTSEVER VP, Europe & Turkey +90 212 335 5291 [email protected] Ms. Sanem CELEPCI AVP, Americas +90 212 335 5290 [email protected]

Ms. Arzu SOLEYMANI AVP, Asia & Oceania +90 212 335 5293 [email protected] .

Ms. Buket HAVUCOGLU Regional Specialist, Middle East & Africa +90 212 335 5294 [email protected] E-mail Address Fax SWIFT Reuters

: [email protected] : Maslak Mah. Dereboyu 2 Cad. No: 13 34398, Sarıyer - Istanbul - TURKIYE : +90 212 276 2365 : TEKB TR IS : TEXT 30

We will be proud of being your partner in trade finance avenues in Turkey ...

Disclaimer Statement The information, opinions and estimates contained in this document have been compiled or arrived at by Tekstilbank from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. All opinions and estimates contained in this document constitute the Company’s judgement as of the date of this document and are subject to change without notice. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgement by any recipient. The Company does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents. This document is strictly confidential and may not be reproduced, distributed or published for any purpose.

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