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1 H 05 BRSA Bank Only Financial R esults

1 H 05 BRSA Bank Only Financial R esults. 2 9 July 20 0 5. Highlights. T otal assets increased 28% y-t-d , reaching TRY 44.7 bn (USD 32.8 bn) Continued growth in loan portfolio of 32 % y-t-d 41 % growth in TL loans -mostly made up of high yield SME and consumer loans

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1 H 05 BRSA Bank Only Financial R esults

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  1. 1H05 BRSA Bank Only Financial Results 29 July 2005

  2. Highlights • Total assets increased 28% y-t-d, reaching TRY 44.7bn (USD 32.8bn) • Continued growth in loan portfolio of 32% y-t-d 41% growth in TL loans -mostly made up of high yield SME and consumer loans • Aggressive growth in customer deposits, up 32% y-t-d, generated from 87% growth in TL customer deposits • Net commission income growth 57% y-o-y, driven by the strong growth in credit card and consumer loan related revenues • 40% growth in net profit, reachingTRY 778mn (USD 571mn)

  3. Highlights Total Assets (TRY billion) Loans (TRY billion) 18% 23% 8% 7% Deposits (TRY billion) Net Profit (TRY million) 40% 23% 10% * At YE04 prices

  4. We are improving our rankings* 1H05 1H04 • Total Loans 1 2 • Total Consumer Loans 1 2 • Car Loans 1 2 • Mortgages 1 1 • Deposits 1 2 • Asset size 2 2 * Private Commercial Banks

  5. Profitability Profitability performance (TRY mn.) change 1H05 1H04* 1,285 304 1,119 778 3.9% 26.3% 1,252 194 803 554 3.4% 19.5% 3% 57% 39% 40% Net interest income Net fee income Income before tax Net income ROAA (%) ROAE (%) * At YE04 prices

  6. Ratios Balance sheet performance 1H05 YE04 Interest Earning Assets / Total Assets Interest Bearing Liabilities / Total Liabilities Gross Loans / Total Assets Loans / Deposits* Deposits / Total Assets NPL Ratio Capital Adequacy Ratio (Basel I)** 95.4% 83.4% 39.0% 64.4% 60.4% 1.7% 23.5% 95.9% 78.0% 37.6% 66.0% 57.1% 1.6% 36.2% * Blocked demand deposits of POS merchants (TRY 528mn), which encompasses the character of a demand deposit,is booked as “Miscellaneous Payables” instead of deposits **The sharp fall in the Capital Adequacy Ratio is effected from the share buy-back as well as increase in capital requirement on credit card limits to 100% and strong growth in loans

  7. Composition of securities Composition of securities (TRY bn.) 9.1 9.2 52% 38% 62% 48% • Securities to total assets shrunk to 41% from 44% y-t-d • Eurobonds amounting to USD 307mn(TRY 418mn) and USD 52mn (TRY 70mn) are registeredunder trading and available-for-sale securities portfolios, respectively • 68% of TL securities are carried under available-for-sale securities, profits being booked under equity

  8. 64% 62% 60% Loans Composition of Loans up 32% y-t-d TRY 17.1bn. TRY 13.9bn. TRY 12,9 bn. • TL loans surged 41% y-t-d, compared to 23% growth in the sector • Akbank’s market share in loans reached 14%* from 12.7% y-t-d • Despite the strong growth, NPL ratio has been low at 1.7% and fully provisioned * According to provisional market data

  9. Consumer and SME lending is now ~62% of total loans Breakdown of Loans Growth (y-t-d) 6% 33% 47% 36%

  10. Segment based developments

  11. Consumer Lending Credit Cards Loans Akbank is today # 1 in retail lending Consumer Lending (1H05, TRY mn.) 5,275 4,743 4,488

  12. Retail Banking - credit cards Credit Cards Issuing Volume1 Credit Card Loans1 Market shares are cumulative 1 Amex is included • Strong product mix and solid retail partners has boosted the credit card business • 15% growth in credit card loans y-t-d • 3 million active credit cards by 1H05

  13. Retail Banking - consumer loans Consumer Loans1 (TRY mn.) 55% y-t-d 3,125 2,416 2,010 • Akbank’s consumer loans’ market share reached 16.0% • Market share in car loans reached at 26.6% • Market share in morgage loans reached 16.7% 1 Numbers represent direct lending to individuals, excluding credit cards

  14. 48% y-t-d Retail Banking - small business Small Business Loans1 (TRY mn.) Only 4% in FX • Special credit packages for; • Certain sectors and regions (pharmaceuticals, agriculture, tourism etc.) • Dealer networks of corporate clients (ie. Microsoft, IBM, Bosch, Arçelik) • Cross sell ratio in small business loans is 3.1x 1 Small business loans given to companies with sales turnover <USD 2 mn are granted by the retail banking unit

  15. 75% y-t-d 83% y-t-d Commercial Banking Commercial Loans1 1Q05 2004 1H05 1Q05 1H05 2004 TL cash loans FX cash loans (USD mn.) (TRY mn.) • Commercial loans are also considered as a hook product, which paves the way for further marketing opportunities like cash management services and foreign trade products • There is already 41 commercial banking centers in 16 provinces and we are targeting to add approx. 5 more in a year • Cross sell ratio in commercial loans is 3.9x 1 Medium size companies with sales turnover btw. USD 2–30 mn are serviced through our commercial banking unit

  16. Corporate Banking • Loans to blue-chip companies like Ford, Unilever, Carrefour reached USD 3.3 billion registering a 33% increase y-t-d • Project finance loans stand at USD 1.1 billion • Special and structured financial solutions for corporate needs like cash management products regulating the collection and payment cycle of companies • Blue-chip companies provide excellent cross-sell opportunities (3.8x)

  17. Asset management Mutual Funds (TRY mn.) • Currently #2 in mutual funds • The underlying factors behind this; • Superior channel management • Superior asset management performance • Effective marketing and communication Private Banking Assets (USD mn.) Volume Market share (%) • Wide range of domestic and international investment products • Top quality investment advisory service • Cross-sell ratio in private banking is 3.7x

  18. Breakdown of customer assets TRY 46 bn TRY 39 bn 87% y-t-d Market share 10% 15% 19% 14% 36% • Total customer assets surged 19% year-to-date, compared to 5% for the sector • Akbank’s market share for total customer assets constitutes 15% of the market versus 13% in YE04

  19. Income statement - composition of interest income Composition of interest income TRY bn. 2.2 2.3 *At YE04 prices • Growth in TL loans has had a dramatic impact on interest income

  20. Net fees and commissions Net Fees & Commissions (BRSA, TRY mn.) Fees and commissions revenue contribution Corporate loan related Asset management fees Consumer loan related Money transfer fees 57% Other Merchant commissions Credit cards commissions *At YE04 prices • Net fee and commission income growth is mainly due to the rapid growth in credit card and consumer loan related revenues • We continue to implement and increase fees in all the product base

  21. Improving fee income ratios in line with targets Net fees & commissions/operating expense Net fees & commissions/operating income • We are rapidly approaching our medium term fee to income target of 25%

  22. Efficiency ratios Operating expense/average assets (%) Cost/income (%) • Restructuring of branches will largely be finalized at YE05 • Centralization together with the new technology infrastructure continue to allow us to keep operational costs subdued

  23. Net interest margin NIM (%) • Net interest margin is only falling gradually due to the shift into TL assets NIM (after FX loss, loan provision) * 1H04 and YE04 figures are after monetary loss

  24. Income statement summary Income statement summary(1H05, TRYmillion) 133 -167 93 -529 304 -341 1,285 778 NII Net fees income Net trading income Other income Provisions Operating expense Tax Net income • Asset switch to TL loans from TL securities continues to affect the interest spread positively • A y-o-yincrease of 57% in net commissions has had an important impact on profitability

  25. Free capital comparison Free Capital 1H05 (BRSA, TRYmn.) Total Equity (BRSA, TRYmn.) AKBANK • Buy-back of founders’ shares has reduced equity • Akbank will continue to optimize its capital structure through its dividend policy of 30% min. - 50% max. cash dividend payment • Akbank’s strong free capital is a major cushion against the effects of any market volatility

  26. Akbank is the 1st bank in Turkey to buy its founders’ shares • Akbank finalized the buy-back of its founders and usufruct shares from its extraordinary reserves, on 28 June 2005 • The target for the transaction was; • To create value for ordinary shareholders as they will be eligible to receive dividend payments from a larger pool of distributable profit • To reduce excess capital by approx. USD 750mn • To enhance ROE and therefore the overall valuation of the bank • To improve corporate governance • To clear the way for potential strategic partnerships and mergers in the future for Akbank

  27. Balance sheet highlights Shares (%) BRSA (TRY mn.) 1H05 2004 2004 1H05 TOTAL ASSETS Cash and Due from Banks Securities Loans TOTAL LIABILITIES Deposits Funds Borrowed TOTAL EQUITY 44,673 2,747 18,308 17,109 39,062 27,005 5,790 5,611 34,913 1,995 15,238 12,939 28,686 19,918 4,845 6,227 6 41 38 60 13 13 6 44 37 57 14 18

  28. Income statement highlights BRSA (TRY mn.) 1H04* 1H05 Interest Income Interest Expense Net Interest Income FX Gain (Loss), Net Provision for Loan Losses Net Interest Income after FX, Income/Loss & NPL Prov. Fees and Commissions (Net) Profit on Trading Securities (Net) Operating Profit Operating Expenses Monetary Loss Income Before Tax Tax Net Income 2,190 (938) 1,252 (105) (51) 1,096 194 225 1,654 (421) (360) 803 (249) 554 2,317 (1,032) 1,285 11 (143) 1,153 304 68 1,769 (490) - 1,119 (341) 778 * Amounts are expressed in terms of the purchasing power of TL at 31December 2004

  29. Balance sheet highlights in USD Shares (%) BRSA (USD mn.*) 2004 1H05 2004 1H05 TOTAL ASSETS Cash and Due from Banks Securities Loans TOTAL LIABILITIES Deposits Funds Borrowed TOTAL EQUITY 32,799 2,017 13,442 12,561 28,680 19,827 4,251 4,119 25,490 1,456 11,125 9,447 20,943 14,542 3,537 4,547 6 41 38 60 13 13 6 44 37 57 14 18 * Figures are stated with exchange rates effective at respective dates

  30. Income statement highlights in USD BRSA (USD mn.*) 1H04 1H05 Interest Income Interest Expense Net Interest Income FX Gain (Loss), Net Provision for Loan Losses Net Interest Income after FX, Income/Loss & NPL Prov. Fees and Commissions (Net) Profit on Trading Securities (Net) Operating Profit Operating Expenses Monetary Loss Income Before Tax Tax Net Income 1,387 (595) 792 (66) (32) 694 123 143 1,046 (267) (228) 508 157 351 1,701 (758) 943 8 (105) 846 223 50 1,299 (360) - 821 (251) 571 * Figures are stated with exchange rates effective at respective dates

  31. 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.

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