Investor Presentation by yaofenjin

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									Investor Presentation

August 2011




                        1
Agenda




• Strategy                    3

• Financial performance       13

• Segment based performance   33

• Annex                       42




                                   2
Shareholder structure




                      31.1%
                                                                                      48.9%




                                     20.0%


                       Sabancı Holding, affiliated institutions and individuals   Citigroup   Free Float




    Approx. 15% of the outstanding shares is held by foreign investors

 As of June 30,2011
                                                                                                           3
Strategy


         Customer                               Operational                         Prudent
      Oriented Growth                           Excellence                        Management
   Increased sales effectiveness         Excellence in distribution      Strong balance sheet structure
   Innovative products&services          Excellence in IT                Strong corporate governance
   Best customer experience




                                    Sustainable Profitable Growth




                                                                                                          4
Increased sales effectiveness


  Improved CRM capability
        Integrated customer management
        Customized offers in all channels
        Real time marketing




  Increased branch sales effectiveness

        SME branch network re-structured
        Standardized sales approach
        Regional sales strategies
        Every branch personnel as a sales person
        Enhanced monitoring and reporting




                                                    5
Innovative products and services

 Money transfer via GSM            Bundled products                     Prepaid pricing




Money conveniently transferred      Menu Products:                       Packaged pricing:
from an Akbank account or credit     Consumer Loan Bundle                Money transfers
card to:                              - loan, credit card, utility        Check transactions
    any Akbank account,               payments                           Statements
    any credit card,                Mortgage Bundle
    Akbank ATM                       - mortgage, credit card, life
                                       insurance
through all GSM operators in 20      Private Pension Bundle
seconds                                - private pension, credit card
                                     Saving Bundle
                                      - credit card, time deposit
                                                                                                6
Excellence in distribution and IT

         Excellence in branches
                Extensive & strategically well-positioned branch network
                Customer prioritization
                Customer satisfaction KPI
                Decreased waiting time to 7 minutes

         Excellence in non-branch channels
                63% of transactions non-branch
                2nd biggest ATM chain
                New Internet Branch
                Pioneering applications in Mobile Banking
                Award winning call center


ATM / BTM            Internet Branch         Mobile Banking    Telephone Banking   SMS Banking




                                                                                                 7
Improving cross-sell ratio

                     Cross-sell ratio for average customer
                                                                     3.02
                                                              2.99

                                                      2.93
                                               2.89
                                 2.85   2.86
                         2.84



                         4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11




   By product                                                By segment
   Mortgage Loans               5.8x                         Consumer       3.0x
   General Purposes Loans 5.6x                               SME            4.9x
   Investment Products          5.1x                         Corporate      4.9x



                                                                                   8
Increasing trend in branch efficiency

Loan / Branch (TL mn)
                                                 76.4
                                        69.1
                               63.2
                60.1    59.4
         55.6
  50.8



  4Q09   1Q10   2Q10    3Q10   4Q10    1Q11     2Q11



                                  Commission / Branch (TL mn)
                                                                                     1.8
                                                         1.6                  1.6
                                       1.5      1.5             1.5    1.5




                                      4Q09     1Q10     2Q10   3Q10   4Q10   1Q11   2Q11


                                                                                           9
Akbank differenciated itself in the current banking environment

  Strong liquidity                                         Robust capital structure
     Loan-to-deposit ratio 92.8%                             CAR 17.3% (peer group 16.4 %)
      (peer group 97.8%)                                      Tier I Ratio 16.4% (peer group 13.3 %)
     Leverage 7.3X (peer group 8.8x)                         Strong free equity



                             Effective asset liability management
                                Interest rate risk is well managed
                                Duration gap - Akbank 5.5 months
                                CPI linkers - hedge against inflation



  Diversified funding base                                     Superior asset quality
     High borrowing capability to support                        NPL ratio 1.7% (peer group 2.6%)
      leverage                                                    100% specific provisioning
     Diversified deposit base                                     (peer group 85.8%)

                                                                                                        10
Strong corporate governance
Effective Board of Directors Oversight

Well functioning BoD Committees
           Executive Management Committee
           Audit Committee
           Corporate Governance and Corporate Social Responsibility Committee
           Credit Committee

International Advisory Board
 Chaired by Kemal Derviş, former Economy Minister and Head of the United Nations

  Development Programme

   Members are;
        Lord Nicholas Stern, former SVP and Chief Economist of the World Bank,

        Sir Win Bischoff, Chairman of Lloyds Banking Group plc and former Chairman of

         Citigroup,
        Lubna Olayan, CEO of the Olayan Financing Company,

        Rodrigo de Rato, Chairman of Caja Madrid and former Managing Director of the IMF

        Jean Pisani-Ferry, Director of BRUEGEL and professor of economics

        Bülent Eczacıbaşı, Chairman of the Board of Eczacıbaşı Holding

        Akbank‟s executive board members
                                                                                            11
Pioneer in corporate governance & social responsibility
The first bank that;
      declared a dividend policy (2003)


      initialized a buy-back of its founders‟ shares (2005)


      issued its Corporate Governance principles in its Annual Report (2003)


      issued its Corporate Governance principles on its web-site (2004)

       issued its UN Global Compact report (2010)

      sponsored the Carbon Disclosure Project in Turkey (2010)


      issued its Sustainability Report (GRI) within commercial banks (2010)


      first and only bank in CDP 2010 Global 500 Report

                                                                               12
Financial performance




                        13
Financial results

      We are beginning to see the impact of transformation

         Solid loan growth of 19.8%, 40bps market share gain
                Strong growth of 23.8% in TL loans, 60bps market share gain
         Balanced growth of 19.2% in consumer loans
                20.9% increase in mortgage loans
                14.5% increase in auto loans
                18% increase in general purpose loans
         26.2% growth in SME loans and 17.1% growth in corporate loans, 70bps increase in
          market share
         Leverage increased to 7.3x from 6.7x
         50 bps reduction in NPL ratio with aid of strong risk management
         Strong fee income growth of 19.2% y-o-y
         Efficient cost control with 2% cost/asset ratio




Sector comparisons based on weekly BRSA unconsolidated figures.
                                                                                             14
1H11 Highlights – strong shift from securities to loans
                                       YE10                                        1H11

       Loans / assets              2.7%    2.7%                              3.0% 2.9%
                                 4.4%                                     8.4%
        increased to 53.4%
        from 48.1%
                                                       48.1%
       Securities / assets                                                               53.4%
        decreased to 32.3%    42.1%                                  32.3%
        from 42.1%
                                                   Loans             Securities
                                                   Liquid assets     Other
                                                   Reserve Requirement


                              Total Assets: TL 120,070 mn            Total Assets: TL 129,526 mn

                                        9.8%                                      11.4%
   CAR 17.3%                   6.0%
                                                                         6.8%
   Tier I Ratio 16.4%        9.6%
                                                                    10.6%
   Leverage 7.3X                                      59.7%                              57.5%
                              14.9%                                  13.7%
   Loans to Deposit 92.8%
                                                   Deposits          Equity
                                                 Funds Borrowed      Other
                                                   Repo
                                                                                                   15
Improving operational fundamentals while cyclical pressure on NIM

         (TL mn.)        1H10   1Q11     2Q11     1H11

        Net Profit      1,808   728      671     1,399

        ROAE            24.0%   16.6%    15.4%   15.9%

        ROAA            3.4%    2.4%     2.1%     2.3%

        NIM             4.8%    3.5%     3.0%     3.3%

        Cost of Risk    -0.4%   -0.2%    0.0%    -0.1%

        Cost to Asset   2.2%    2.0%     2.0%    2.0%

        Fees to Cost    58.2%   60.0%    73.3%   66.7%

        CIR             32.7%   36.4%    41.3%   38.6%


                                                                16
NIM will improve in 2H
● Excluding reserve requirement cumulative NIM will be 3.5%
                     NIM Cumulative*                                                                  NIM Quarterly*
     5.3   5.2     5.1      5.5
                                   4.8                                         5.4     5.2            5.5
                                                                                               5.0                            4.6
                                           4.0     4.1                                                           4.2
                                                          3.5   3.3                                                                   3.5
                                                                                                                       2.3                  3.0




   2Q09    3Q09   2009    1Q10    2Q10   3Q10     2010   1Q11   2Q11           2Q09 3Q09       2009   1Q10 2Q10 3Q10         2010   1Q11 2Q11



 (TL mn., $ mn.)                   2Q10           4Q10           1Q11           2Q11                    Effect on NIM change
                                                                                                      4Q10-1Q11       1Q11-2Q11
TL Loans                          12.73%         11.21%         10.47%        10.00%                    18                   4
TL Deposits                       7.62%          7.58%          6.79%           6.92%                       28                         4
FX Loans                          3.96%          4.03%          3.95%           4.07%                        4                         7
FX Deposits                       1.92%          2.09%          2.40%           2.68%                       -5                       -11
Loan-Deposit spread                                                                                         45                         4
TL Securities                     13.51%         11.50%         8.99%           9.10%                  -142                          -21
FX Securities                     4.03%          4.50%          4.54%           4.72%                       -2                         0
Securities spread                                                                                      -144                          -21
Total                                                                                                   -99                          -17
Reserve requirement                                                                                         -8                       -28
Total                                                                                                  -107                          -45
* Adjusted for BRSA classification, reserve requirements included in interest earning assets                                                      17
Improvement in loan/deposit spread continued


                                  45

        bps
                                  23

                       13         22     4
                            27           11       Deposit NIM Effect
                  2
                 -14    -14              -7
          -18                                     Loan NIM Effect
                 -12                              Loan/Deposit Spread
          -14

          -32

         2Q10   3Q10    4Q10     1Q11   2Q11




      During 2Q11, loan yields were gradually increased by 450bps
      Portfolio loan yields started to improve




                                                                        18
 Loans – TL loans major contributor to growth

   (TL mn., $ mn.)                        2Q10     3Q10      YE10     1Q11     2Q11    y-t-d

     TL loans                             29,157   30,747   32,035   35,898   39,671   23.8%

     FX loans ($ mn)                      14,759   15,566   16,713   17,651   18,240   9.1%

     Total loans                          52,383   53,215   57,733   63,016   69,141   19.8%



   (TL mn., $ mn.)*                       2Q10      3Q10     YE10    1Q11     2Q11     y-t-d
   TL Corporate                           4,586     4,508    3,676    4,973    4,765   29.6%
   FX Corporate ($ mn)                    11,062   11,402   12,294   13,089   13,412    9.1%
   TL SME                                 6,786     7,504    7,906    9,121   10,522   33.1%
   FX SME ($ mn)                          3,843     4,291    4,613    4,820    5,202   12.8%
   Consumer                               11,982   11,797   13,047   14,193   15,564   19.3%
   Credit Cards                           6,122     6,266    6,576    6,665    7,606   15.7%


(*) Excluding accrued interest on loans                                                        19
Loans – superior asset quality continued
(TL billion)
                                                                                                    NPL ratios

 52.4                57.7           63.0             69.1                                  Akbank                       Sector

                                                                                    2010       2Q11              2010        2Q11

42%              39%                40%             38%
                                                              Corporate             0.0%        0.0%
                                                                             1.6%                       1.1%     2.8%        2.4%
                                                              SME                   3.7%        2.8%
25%              26%                26%             28%
                                                              Consumer              2.3%        1.8%             2.7%        2.0%
21%              23%                23%             23%
                                                              Credit Cards          4.6%        4.1%             8.1%        7.1%
12%              12%                11%              11%
                                                              Total                 2.2%        1.7%             3.6%        2.9%
June'10              2010          March'11         June'11

      Credit Cards      Consumer     SME      Corporate




     100% specific provisioning; strong buffer and hidden reserve of around TL 415 mn
     156% coverage ratio including general provisions



                                                                                                                                 20
Positive P&L contribution from cost of risk
                                                                                                           NPL ratio
                                                                                     5.2      5.2           4.9
                                                                         4.6                                           4.4        4.2
                                                                                     3.9       3.8                                            3.6
                                                                             3.5
                                                                                                                                                       3.2
                                                                                                          2.9        2.5         2.4                            2.9
                                                                                                                                          2.2
                                                                                                                                                     1.9      1.7



   (TL mn.)
                                                                        2Q09        3Q09      2009       1Q10        2Q10     3Q10       2010       1Q11     2Q11

                             Cost of risk                                                                Akbank              Banking Sector

   338
               321

                           247
                                 199
         180                                   172          170
                     161                 148
                                                      124
                                                                     124 120       104 119         100     92 98
                                                                                              69



     2.0        1.9         1.5                -0,5      -0.4         -0.3          -0.3       -0.2         -0.1

    June'09    Sept'09     Dec'09         Mar'10      June'10         Sep'10       Dec'10     Mar'11       June'11



                 New NPL               Collections (*)            Cost of risk (cumulative)

(*) Excluding NPL Sales                                                                                                                                             21
Loans - diversified book with high collateral

                                                              Automotive, 3%
                                         Food and Beverage,
        Petroleum, 6%                           5%               Textile, 2%

                            Other, 14%                               Tourism, 3%

    Iron & Steel, 3%                                                    Transportation, 2%
          Metals, 1%


         Energy, 4%                                                        Consumer & Credit
                                                                            Card loans, 27%
  Financial Institutions,
           7%                                                 Telecommunication,
                                                                     4%
                       Trade, 10%
                                                        Cement &
                              Construction, 7%         Construction
                                                       materials, 1%
                                                                                                           Collateral
                                                                                               Corporate       42%

                                                                                               SME             84%

                                                                                               Mortgage      100%

                                                                                               Auto          100%




                                                                                                                        22
Loans – increasing share of TL loans




Total (TL bn)       Total (TL bn)          TL (TL bn)           FX ($ bn)
 57.7        69.1    57.7         69.1    32.0         39.7    16.7        18.2
                                                               24%         30%
 45%         43%     47%          56%      66%         73%
                                                               76%         70%
 55%         57%     53%          44%      34%         27%

 2010        2Q11    2010         2Q11    2010         2Q11    2010        2Q11
        TL   FX        Floating   Fixed     Floating   Fixed    Floating   Fixed




                                                                                   23
Securities - unrealized gain more than TL 950 mn


     Total (TL bn)           Total (TL bn)             TL (TL bn)              FX ($ bn)

    50.5       41.9           50.5        41.9        37.1         36.2      4.2         3.6
    13%        14%
                                          43%                      34%
                             53%                      46%
                                                                             99%         99%
    87%        86%
                                          57%                      66%
                             47%                      54%
                                                                              1%          1%
2010           2Q11          2010         2Q11        2010         2Q11      2010        2Q11
          TL   FX              Floating   Fixed         Floating   Fixed      Floating   Fixed




   Liquid securities portfolio used to finance loan growth
   Available for sale 82% (2010: 86%), held-to-maturity 13% (2010: 13%), trading 5%
    (2010:1%)
   Higher share of floating rate in TL
   TL 388 mn of trading gain, CPI linkers 38% of portfolio


                                                                                                 24
 Deposits – growth in share of demand deposits




Total (TL bn)      Total (TL bn)      TL (TL bn)         FX ($ bn)


71.7        74.5   71.7        74.5   42.0       41.5    19.3      20.4
                   12%        13%     14%        17%     10%         10%
41%         44%

                   88%        87%     86%        83%     90%         90%
59%         56%


2010        2Q11   2010        2Q11   2010        2Q11   2010        2Q11
                     Time Deposit       Time Deposit       Time Deposit
       TL   FX
                     Demand Deposit     Demand Deposit     Demand Deposit




                                                                            25
Pioneering position in bond issuance

   A landmark transaction, creating a precedent as the first direct non-sovereign
    Eurobond from Turkey

          USD 1 billion Eurobond issuance with a 5 year maturity in July 2010

          Akbank ranked in the FTSE Global Markets‟ “20/20 All Stars” list as the only
           Turkish institution in 2010

   First domestic TL denominated bond issued by a deposit bank of TL 1 billion with
    a maturity of 6 months in December 2010

   The second Eurobond issuance of USD 500 million with a 7 year maturity in
    March 2011

   TL denominated bond issuance of TL 1 billion in June 2011 and 500 million in July
    2011 with a maturity of 6 months




                                                                                          26
    Interest rate risk is well managed


                                            Effect of 1% rate change
                         Duration (days)    (TL mn)

   Assets:                    TL      FX               TL      FX
   Loans                     397     153              408      111
   Securities                278    2,311             276     332


   Liabilities:
   Deposits                  209     159               223     121
   Funds Borrowed            589     144                 4      48


    Total Mismatch*          172     143               418     140




* After swaps
                                                                       27
   Strong fee and commission growth
   (TL mn.)
                            19.2% y-o-y                               16% q-o-q fee and commission growth
                                                                       excluding account maintenance fee in 2Q
                                                     822
                689                                                   Growth is mainly due to credit card,
                                                                       bancassurance and other banking
                                                  461
                402                                                    commissions
                                                                      Bancassurance 46% and money transfer fees
                287                               361                  44% y-o-y growth
                                                                      Improving fee/income to 25.8% and fee/cost
            June'10                             June'11                ratios to 66.7%
 Credit Card Commissions            Other Fees & Commissions

                            1H10                                                                 1H11

                  Asset                                                                    Asset
                  management         Commercial loans                                      management   Commercial loans
Money             fees                                                   Money             fees
transfer fees           9%                9%   Consumer loans            transfer fees       10%           11%    Consumer loans
           4%                                                                       3%
                                                9%                                                                  7%
                                                        4%                                                                 5%
                                                   Bancassurance                                                      Bancassurance

Other                                                                    Other
        18%                                                                      16%
                                                     18%                                                              17%
                      29%                         Merchant                                 31%                       Merchant
                Credit cards                      commissions                            Credit cards                commissions
                commissions                                                              commissions                               28
Operational costs – sustainably low cost base

Quarterly Operational Cost
                     678
            620               613       617
    590
                      226
                                                Employee costs
             230                        251
                               247
    238
                                                Rent, repair & maintenance,
                      96                        amortisation

             87                                 Marketing and advertisement
     85                        86       92
                      145
                                                Other
             153               114      105
    123
                                                SDIF premium
                      193
             132               148      151
    130

     14      18       18       18       18

    2Q10    3Q10     4Q10     1Q11     2Q11



   4% y-o-y, 1% q-o-q increase in line with the budget



                                                                              29
Efficiency maintained


             Cost/average assets (%)                                          Cost/income (%)



                                                                                    50.7
    3.0
              2.8    2.7   2.7                                        45.2
                                                                             42.9
                                   2.4                         39.1                        39.8   38.7          38.6
                                           2.2                                                           36.4
                                                 2.0    2.0




    2005   2006     2007   2008   2009   2010    1Q11   2Q11   2005   2006   2007   2008   2009   2010   1Q11   2Q11




   Cost to asset and cost to income ratios well under control
   Low cost / asset ratio has a positive impact on ROA




                                                                                                                       30
 Akbank Operation Center
   The highest transaction capacity operations center of Turkey with 54,000 sqm. closed
    area and 3,500 personnel
           call center,
           back offices,
           quality & process management,
           IT operations
   State-of-the-art technology
   96% of Akbank‟s operations are held under one roof
   Over 550 million transactions in 2010
   Call Center:
           Total 40 million calls
           400,000 credit card sales
           TL 70 million insurance sales
   Akbank Call Center won awards in ‘The Best Call Center with More Than 200 Seats’
    and ‘The Best Customer Representative’ categories at „Istanbul Call Center Awards
    2010‟ organized by IMI Conferences
* Currently 1,000 seats                                                                    31
    Financial strength approved by ratings
   Due to its effective risk management practices and exceptional performance, rating institutions Fitch
    and Moody‟s have given Akbank the highest individual and financial strength ratings that can be
    assigned within the Turkish banking sector
   Moody‟s has assigned Akbank the highest Baseline Credit Assessment in Turkey, of Baa1
   Akbank‟s LC ratings are 4 notches above the sovereign by Moodys and 1 notch by Fitch at Investment
    Grade

                                                    Financial Strength and
                         National Rating                                        Baseline Credit Assessment
                                                       Individual Rating
     Moodys                       -                               C-                        Baa1

     Fitch                   AAA(tur)                              C


                       Long-Term TL            Short-Term TL               Long-Term FX     Short-Term FX

    Moodys                    Baa1                   Prime-2                   Ba3           Not Prime

    Fitch                     BBB-                      F3                    BBB-             F3



Rating reports can be found at “http://www.akbank.com/ratings-1528.aspx”                                     32
Segment performance




                      33
       Improving presence in the SME market
       New SME banking unit with increased number of branches


                Corporate              SME                               Consumer             Private
Responsibility Banking Unit         Banking Unit                        Banking Unit        Banking Unit




                 Corporate                      SME & Consumer Banking                     Private Banking
Center/Branch     Centers                              Branches                                Centers
                     9                                    887                                     9


Number of
Customers           2,600                  139,000                        8,200,000             5,500




Customer
Segment         Corporate     Commercial       Small Business   Micro           Personal    Private




                                                                                                        34
Balanced consumer loan growth
   (TL mn.)
                                                  19.2% y-t-d
10.2           10.1            10.2           10.1            10.0

                                                           15,647
                                          14,279
                           13,130
11,060      11,877
                                                            7,455
                                             6,667
                              6,166
 5,374         5,734
                                              866            921
                622            804
 513                                                                     Mortgage loans grew 20.9% y-t-d vs 16.6% of
 5,173         5,520          6,160          6,746          7,272
                                                                          sector, 30bps increase in market share

June'10       Sep'10          Dec'10         Mar'11        June'11       Auto loans grew 14.5% y-t-d
General purpose        Auto loans      Mortgage       Market shares

                                                                         General purpose loans grew 18% y-t-d


  48.6%        46.5%          46.9%       47.2%           47.6%

  4.6%          5.2%           6.1%          6.1%         5.9%

               48.3%                       46.7%
  46.8%                       47.0%                       46.5%


  June'10      Sep'10          2010        Mar'11        June'11

            General purpose     Auto loans      Mortgage

                                                                                                                        35
Credit card loans – increasing market share

     Credit Card Loans (TL mn)
                                         15.5% y-t-d

  15.9      15.4      15.2       15.0         15.5
                                                       15.0
                                           7,642       10.0
           6,405      6,619     6,707                  5.0
  6,163                                                0.0     Higher quality portfolio with;
                                                       -5.0
                                                       -10.0
                                                       -15.0
                                                                  Low NPL ratio of 4.1% vs 7.1% for the sector
                                                       -20.0
                                                       -25.0      Highest issuance volume per card in the peer
                                                       -30.0

 June'10   Sep'10     2010     Mar'11      June'11
                                                                   group
                                                                         35% higher than the sector average
     Credit Cards Issuing Volume
                                    17.8% q-o-q                   Highest issuing & acquiring commission income
                       13.6       14.1
                                                14.4               on volumes compared to the peer group
  13.5      13.4
                                              10,519
                                                          12      Focus on further optimization
                      8,536      8,933
 7,898     8,098
                                                          7

                                                          2

                                                          -3
 2Q10      3Q10       4Q10       1Q11          2Q11



                              Market shares
    Volume (TL mn.)                                                                                               36
Exclusive proposition for premium segments: Wings Card




 More than 400k cards acquired

 First travel card in the market offering a special program to banking relationship;
    25% extra miles earning
    Limitless redemption

 Global Features;
    Citi ATM Share
    Citi Mile Transfer Program
    Citi World Privileges Program
    Wings Globeshopper

   Citi Wings branded Card for Citi customers with privileges of Wings Card

                                                                                        37
SME loans – continued strong momentum with risk focus
             TL Loans (TL bn)

                              33.1% y-t-d




                                        10.5
                               9.1
           7.5       7.9
  6.8


                                                                 Sales effectiveness with new operations
June'10 Sep'10      2010     Mar'11 June'11                      New products for export finance, energy efficiency,
                                                                  renewable energy

         FX Loans (USD bn)                                       Bundled product packages – wholesale and foreign
                                                                  trade support
                                12.8% y-t-d                      The channeling of cheap multilateral funds from EIB
                                                                  and EBRD
            4.3       4.6      4.8       5.2
   3.8
                                                                 New website for SME‟s


 June'10 Sep'10      2010    Mar'11 June'11


    SME loans given to companies with sales turnover <TL 100 mn                                                         38
Corporate loans – strong growth

            TL Loans (TL bn)


                             29.6% y-t-d

  4.6        4.5                 5.0        4.8
                      3.7


                                                        Excellent relationship management
 June'10    Sep'10    2010      Mar'11     June'11
                                                        Strong penetration to the cash cycles of
                                                         companies

             FX Loans (USD bn)                          Increased M&A advisory, IPO‟s, Corporate
                                                         Bond Issuance Services
                                  9.1% y-t-d


                                 13.1       13.4
             11.4     12.3
   11.1




  June'10    Sep'10   2010      Mar'11     June'11
                                                                                                    39
    Wealth management
       Managing assets in two distinct areas
                                                            Asset and Portfolio Management
         Private Banking Assets (USD mn.)
                                                           Total AUM TL 8.4 billion including pension
                                     13,714   14,101
                 13,023    12,830                           funds; market share of 16.4%
        12,046
                                      3,343    4,605       Leading position with 21 % market share in
                  3,389     3,436
        3,078                                               pension asset management
                                                           27% discretionary portfolio management
                                                            market share
                                     10,371
        8,968     9,634     9,394              9,496
                                                           First capital protected fund in Turkey and
                                                            leading position with 24% market share
                                                           The first B.R.I.C. Fund in Turkey with Franklin
    June'10      Sept'10    2010     Mar'11   June'11
            Discreationary Asset Management
                                                            Templeton
            Deposit
                                                           First commodity fund in Turkish asset
                                                            management sector
   AUM grew 15.5% y-t-d
                                                           First Turkish Asset Management Company to
   Top quality investment advisory service
                                                            sign the UN Principles for Responsible
                                                            Investment (PRI) Initiative

                                                                                                              40
Akbank 2011 targets                        Current position

   Loan / assets 55%                          Loan / assets 53%

   Securities / assets 35%                    Securities / assets 32%

   2011 ROE target is 16-18%                  ROE 15.9%

   2011 Leverage target is 7.5x               Leverage 7.3x

   Loan growth target is 25% +                Loan growth 19.8% (1H)

   Deposit growth is targeted at 15%          Deposit growth 3.9% (1H)

   NIM will be ~3.70%                         NIM 3.3%

   Net commission income will be 15% +        Net commission income 19.2%

   Opex: Lower single digit growth            Opex: 4% y-o-y

         2.0% cost to asset ratio                   2.0% cost to asset ratio

   NPL will be around 2.1%                    NPL 1.7%

         Cost of risk between 30-50 bps             Cost of risk -10 bps
                                                                                 41
Annex




        42
Extensive & strategically well-positioned branch network

        Kırklareli
           Kırklareli
              4                                     Bartın
Edirne      Kırklareli
                 4                                    BartınKastamonu Sinop
                                                         1                                                                                  ArtvinArdahan
              Kırklareli
                       İstanbul                            1 Kastamonu Sinop
                                          Zonguldak Bartın Kastamonu Sinop
  Edirne
     6Tekirdağ4 4                                         Bartın 5 5           3                                                               ArtvinArdahan
        6Tekirdağ
   Edirne                 İstanbul                                                3                                    Trabzon Rize            3       1
     Edirne                İstanbul
                           276               Zonguldak 1 1 Kastamonu Sinop
                                                   5 Karabük                       Samsun
                                                                                   33                                     Trabzon Rize ArtvinArdahan
                                                                                                                                                 3        1
                                                                                                                                                  ArtvinArdahan
          16
          6Tekirdağ
            6Tekirdağ        İstanbul
                               Kocaeli
                              276                     5 Karabük
                                               Zonguldak1               55           Samsun
                                                                                       10                                  Trabzon 5Rize          33
            16
                               291Kocaeli
                                   21
                                                Zonguldak 1 Çankırı
                                                         Karabük
                                                       5 5 Karabük                    Samsun Ordu Giresun
                                                                                 Amasya  10
                                                                                         Samsun Ordu Giresun
                                                                                                                           9 Trabzon 5
                                                                                                                              9            Rize
                                                                                                                                                           11
             1516      Yalova 27621 Sakarya
                                   Kocaeli
                                     Kocaeli Bolu             Çankırı
                                                             1 Çankırı Çorum Amasya        10           5
                                                                                                           5    5                          55           Kars
                                                                                                                                                          Kars
                           2
                         Yalova 10     Sakarya                 11 Çankırı            3 Tokat 10          Ordu Giresun Bayburt
                                                                                                                   5
                                                                                                            Ordu Giresun       99                         1
                                                                                                                        •                                    1 Iğdır
                                       21                         1         Çorum Amasya                                                Erzurum
Çanakkale             BursaYalova SakaryaBolu
                              2
                           Yalova        21
                                         10
                                Bilecik 11
                                                  3
                                          Sakarya 3                 11      4
                                                                                        3 Tokat
                                                                                       Amasya               55      55         Bayburt
                                                                                                                                 1
                                                                                                                           2 BayburtErzurum
                                                                                                                                                            Kars Iğdır
                                                                                                                                                              Kars1
 Çanakkale              Bursa 2Bilecik 10 Bolu
                               2                     Bolu                    Çorum
                                                                               Çorum 3 3 Tokat
                                                                               4              6
                                                                                                 6                                  1        4
                                                                                                                                  Bayburt Erzurum Ağrı 1 Iğdır
                                                                                                                                            Erzurum           1      1
    5                   41          3                 43
                                                      Ankara                                     Tokat            Gümüşhane 1 1                4                      Iğdır
  Çanakkale
       5 Balıkesir
    Çanakkale
                         Bursa Bilecik
                           41
                            Bursa Bilecik
                                       3                     Kırıkkale
                                                        Ankara                  44                66            Erzincan                        44           Ağrı      11
             Balıkesir      41        Eskişehir          83     Kırıkkale Yozgat
                                                                   2                             Sivas             Erzincan                                 3 Ağrı
        5 5 16                 41       33
                                        Eskişehir         Ankara
                                                           83 Kırıkkale Yozgat
                                                            Ankara 2                                Sivas            1                                        3Ağrı
              Balıkesir Kütahya
                Balıkesir                  8                        Kırıkkale 2                      3                  1
                                                                                                                    Erzincan Bingöl
                            Kütahya Eskişehir
                 16                        Eskişehir
                                              8             83 Kırşehir Yozgat
                                                              83       22         2                     3
                                                                                                      Sivas            Erzincan                                 33
                  16          6                                       Kırşehir    Yozgat                Sivas            11          Bingöl Muş
                                                                                                                                       1
           Manisa   16       Kütahya
                                 6             78                       1           22                   33                           Bingöl 1
                                                                                                                                          1      Muş
                                Kütahya                                Kırşehir
                                                                          1
                                                                         Kırşehir                        Malatya Elazığ                  Bingöl Muş
             Manisa
              13                  6 Afyon                                                                   Malatya Elazığ                 11      1Muş
              Manisa Uşak 6 Afyon
                 13
                Manisa Uşak              7                               Nevşehir
                                                                           11
                                                                           Nevşehir
                                                                                                             3
                                                                                                               3
                                                                                                             Malatya 3                              11           Van
                                                                                                                                                                   Van
      İzmir       13         1            Afyon
                                            7
                                            Afyon                            3 Kayseri                        Malatya Elazığ                                       1
         İzmir      13        Uşak
                                1Uşak                          Aksaray Nevşehir 3 Kayseri
                                                                              Nevşehir                          33          Elazığ
                                                                                                                            3Diyarbakır                               1Van
                                                                                                                                                                     Van
        77
          İzmir
           77
            İzmir
                      Denizli 1 1 Isparta
                         Denizli
                                             67      Konya
                                                       Konya
                                                        17
                                                                   Aksaray
                                                                    Aksaray 3 3 KayseriKahraman
                                                                    1
                                                                       1 Niğde
                                                                      Aksaray
                                                                                     13 Kahraman
                                                                                        13
                                                                                       Kayseri
                                                                                                                             33 Diyarbakır
                                                                                                                                   5
                                                                                                                                                   Bitlis
                                                                                                                                                  Siirt
                                                                                                                                         Batman Siirt 1
                                                                                                                                 Diyarbakır           1 •              11
           Aydın
            78            9              Isparta                                         13 maraş Adıyaman                         Diyarbakır
                                                                                                                                      5     Batman Siirt 1
              Aydın
              77          Denizli
                             9
                             Denizli       3
                                              3
                                          Isparta
                                                          17
                                                         Konya
                                                           Konya        1 1 Niğde
                                                                             2             13 Kahraman
                                                                                                   maraş Adıyaman
                                                                                                   3Kahraman                                   1       Şırnak
                                                                                                                                       5 5 Batman Şırnak
                                                                                                                                                 1      Siirt
             10Aydın
                 Aydın        Burdur
                              89             Isparta       1717              Niğde
                                                                               2
                                                                               Niğde
                                                                                Adana                 3
                                                                                                    maraş 1
                                                                                                       maraş Adıyaman                Mardin Batman 11 1
                                                                                       Osmaniye 3 3 Adıyaman
                10
            Muğla                              43                                                                                       Mardin 1 1         Şırnak
                                                                                                                                                            1Şırnak
              Muğla
                 10
                                 Burdur
                                    2                                            2 Adana
                                                                                   2
                                                                                   29 Osmaniye
                                                                                                                  1Şanlıurfa              2
               15 10                   2 Antalya
                                  Burdur
                                    Burdur                  Karaman                 Adana 2 Gaziantep 1 1 5
                                                                                     29
                                                                                      Adana                          Şanlıurfa              2
                                                                                                                                         Mardin
                                                                                                                                            Mardin           11
                Muğla
                  15
                  Muğla                                       Karaman
                                                                 1                               2 Gaziantep                                  22
                   15
                                        2 2 Antalya
                                              32                    1
                                                               Karaman                28 Osmaniye13
                                                                                        29 Osmaniye13                  Şanlıurfa
                                                                                                                            5
                                                                                                                         Şanlıurfa
                     15                       Antalya
                                                32
                                                Antalya           Karaman
                                                                 Mersin                           2 2 Gaziantep
                                                                                                         Gaziantep           55
                                                                     11
                                                                    Mersin
                                                                     19                              Kilis 14
                                                 3332                  19
                                                                     Mersin
                                                                       Mersin
                                                                         18
                                                                          19
                                                                                        Hatay
                                                                                           Hatay
                                                                                            9
                                                                                                       •  1
                                                                                                              13

                                                                                               9
                                                                                            Hatay
                                                                                               Hatay
                                                                                                109




         Akbank with its 905 branches spans throughout Turkey


                                                                                                                                                                              43
Full financial service subsidiaries

               Since 2002
               Located in Amsterdam, with branches in Essen (Germany) and a fully owned subsidiary
               Akbank AG in Germany

               Provides competitive corporate banking activities & trade finance for mainly Trade operations
               between Turkey & EU, as well as savings products for the Dutch, British & German private market

               Akbank NV; assets EUR 1,963 mn.
               Akbank AG; assets EUR 1,181 mn.

               (Ak Securities) Since 1996
               Ranking 7h among the 86 brokerage houses trading on the market



               (Ak Asset Management) Since 2000
               1st in pension fund management business
               4th in asset management

               (Ak Investment) Since 1998
               4rth in size of portfolio

               (Ak Leasing) Founded in 1988
               Raised its market share to 9.5% after becoming 100% subsidiary of Akbank,
               with the aid of the extensive branch network of Akbank
                                                                                                         44
Awards


  Global Finance         Best Bank in Turkey in 2011


  Global Finance         Best Bank in Turkey in 2010
  EMEA Finance
                         • Turkey‟s Best FX Bank
                         • Turkey‟s Best Foreign Trade Financing Bank
  Global Finance, 2010
                         • Best Bank in Turkey in Foreign Exchange
                         Transactions

  Euromoney, 2010         Overall Best Private Bank in Turkey


                         Best EMEA Privatization
  EMEA Finance, 2010
                         Best EMEA Financial Institution Loan Deal


  Gartner, 2011           CRM Excellence

                                                                        45
       Strong Capital Base
Excess Capital (USD Mn)                                                                 CAR (%)

      Tier 1 + Tier 2 Capital
              11,189
                                                                                              21.9
                                                                                                                                         21.0
                                                                                                       20.1
                                                                                                                                                19.9
               5,177              Regulatory capital (1)                                                         18.0
                                                                     Economic                                            17.0                          18.4
                                                                      capital                                                                                 17.3
                                   Additional capital to
                                    cover other risks
               2,244

                                     Excess capital (2)
               3,768

                                                                                           2005 2006 2007 2008 2009 2010 Mar'11June'11
             June'11


     A very small portion of the Bank‟s equity is tied down in fixed investments with free equity
      capital standing at high levels and invested in interest-earning assets.
     Akbank‟s capital adequacy ratio stands significantly above both the minimum (8%) set by
      legislation and the minimum (12%) targeted by BRSA.
     We would like to keep a strong CAR for organic and inorganic growth purposes.
(1)   Minimum capital to cover credit, market and operational risks;
(2)   Excess capital is available for investment and other purposes since “economic capital” is sufficient to cover all economic risks                        46
Balance sheet highlights


 Consolidated                                  Shares (%)   Change
  (TL mn.)                  2010      2H11    2010   2H11     (%)
Cash and Due from Banks     8,521    14,651    7.1   11.3      72
Securities                 50,543    41,900   42.1   32.3     -17
Loans                      57,733    69,141   48.1   53.4      20
Other                       3,273     3,834    2.7    3.0      17
TOTAL ASSETS              120,070   129,526                    8
Deposits                   71,708    74,517   59.7   57.5       4

Funds Borrowed             11,497    13,766    9.6   10.6      20

Repo                       11,797    14,829    9.8   11.4      26

Other                       7,120     8,723    6.0    6.8      23

Equity                     17,948    17,691   14.9   13.7      -1

TOTAL LIABILITIES         120,070   129,526                     8


                                                                     47
Income statement highlights
Consolidated (TL mn.)                                     2Q10      2Q11      Change (%)
Interest Income                                            4,718     4,399         -7
Interest Expense                                          (2,202)   (2,409)        9
Net Interest Income                                       2,516     1,990        -21
Trading Gain (Loss), Net                                     115       123         7
Provision for Loan Losses, net of collections                 70        36        -48
Net Interest Income after Trading Gain/Loss & NPL Prov.    2,701     2,149        -20
Fees and Commissions (Net)                                   689       822        19
Operating Expense                                         (1,185)   (1,232)        4
Other Income                                                 233       217         -7
Other Provisions                                           (155)     (190)        22
Income Before Tax                                         2,282     1,766        -23
Tax                                                        (474)     (367)        -23
Net Income                                                1,808     1,399        -23


                                                                                        48
Disclaimer Statement

The information and opinions contained in this document have been compiled or arrived at by
Akbank 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.

                                                                                                         49

								
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