Slide 1: Outstanding results in line with well-defined strategies
HALKBANK Outstanding results in line with well-defined strategies... Bank only H1 2007 results
Slide 2: Halkbank Overview
(i HALKBANK \warakvankscomr Halkbank Overview > Established in 1938 > One of the leading SME franchises in Turkey > 7.2% market share in total assets, 7th largest bank in Turkey > 10.1% market share in TRY deposits, 4th largest bank > 554 domestic branches, 5th largest branch network in Turkey with
Slide 3: History
(4) HALKBANK wwauakbank.comt History > Established in 1933 and became operational in 1938 with a mission to support SME’s. > Started branch expansion plans in 1960s and had enjoyed, since then, one of the largest branch networks in the country. > 25% of shares listed in Istanbul Stock Exchange with
Slide 4: IPO
i] HALKBANK www,nalkbank.com.tr IPO As of 10 May 2007, 24.98 % of the shares of the Bank Shareholders Structure have been sold through a very successful Public Offering wm Privaization Administration and the shares have been listed in Istanbul Stock Exchange tore 0.04% 24.98% Some of the key highlig
Slide 5: Clear Strategic Objectives
(4) HALKBANK Clear Strategic Objectives www, nalkbank.com.tr Further Strengthen the SME Franchise Increase Market Share in Retail Banking Experience Growth While Preserving Profitability and Efficiency Financial Institutions and Investor Relations Key Initiatives > Increasing product diversity and s
Slide 6: First Half 2007 Performance
i] HALKBANK www, nalkbank.com.tr First Half 2007 Performance Financial Institutions and Investor Relations 5 halkbank IR@haikbank.com.tr
Slide 7: Highlights
(4) HALKBANK Highlights www,nalkbank.com.tr TRY 36.9 bn Total assets increased by 7.3% y-t-d and reached TRY 36.9 bn TRY 814 mn Net interest income increased by 68.9% y-o-y and reached TRY 814 mn, net interest margin maintained its current level of 5.0% TRY 535 mn Net profit grew by 82.0% y-o-y and
Slide 8: Highlights
(i HALKBANK \warakvankscomr Highlights Total Assets (TRY billion) Total Loans (TRY billion) 36.9 Q1 2007 H1 2007 Q1 2007 1 2007 Total Deposits (TRY billion) Net Profit (TRY million) 28.2 28.6 863 554 82.0% 1 294 - Q1 2007 H1 2007 2005 2006 H1 2006 H1 2007 Financial Institutions and Investor Relation
Slide 9: Balance Sheet Performance
(4) HALKBANK www,nalkbank.com.tr Balance Sheet Performance Net Loans/Total Assets (%) Q1 2007 H1 2007 NPL/Total Loans (%) 7 » ul . Q1 2007 H1 2007 Financial Institutions and Investor Relations Net Loans/Total Deposits (%) Q1 2007 H1 2007 Asset composition changing in favor of loans... halkbank.IR@ha
Slide 10: Key Ratios (BRSA Bank Only)
(4) HALKBANK wwakbank.comt Key Ratios (BRSA Bank Only) Cost/Income (%) > Effective cost management 42.7 > Expanding margins ef Re > Strong capital base 2005 2006 Q1 2007 H1 2007 Net Interest Margin (%) CAR (%) 5.0 5.0 49.6 46 3.8 32.0 30.8 al 203 2005 2006 Q1 2007 H1 2007 2005 2006, Q1 2007 H1 2007
Slide 11: Key Ratios (BRSA Bank Only)
(4) HALKBANK Key Ratios (BRSA Bank Only) www,nalkbank.com.tr ROE (%) 29.4 24.4 24.8 : a fi 2005 2006, Q1 2007 H1 2007 ROA (%) 28 28 3.0 : ‘ d 0" 2005 2006 Q1 2007 H1 2007 Financial Institutions and Investor Relations 10 ROE increased 460 bps and reached 29.4%. ROA, reaching 3%, reflects the Bank’s e
Slide 12: Strong Loan Portfolio Growth
i] HALKBANK www.nalkbank.com.tr Strong Loan Portfolio Growth Loans Types (TRY million) @ Retail : earnecel [— Sector growth 12.2% — Bi Oooperaives 27.2% —- 145 2006-H1 2007 Change (%) Retail Loans up by 40.1% 12.7 1% rl 11.4 10% 9% Commercial Loans up by 32.5% 4% ye 6.2 2% 12% 14% a 4 Fund Loans up
Slide 13: Strong Retail Loans Growth
(4) HALKBANK www,nalkbank.com.tr Strong Retail Loans Growth Retail Loans by Product (TRY million) ™@ Credit Card Loans © Other Consumer Loans i Sector growth 14.2% 7 = Consumer Loans im Vehicle L . Rol peas Laws 40.1% ——] 2006-H1 2007 Change (%) 2,993 r ie Za Credit Card Loans up by 12.6% 2,559 % 9%
Slide 14: Securities Portfolio
() HALKBANK Securities Portfolio www,nalkbank.com.tr (TRY million) Held To Maturity Portfolio/Total Assets (%) ® Tracing Portfolio © Available For Sale 51.6 1m Held to Maturity 32.8 31.6 26.7 18,393 17,943 = a wi al 2005 2006 Q1 2007 H1 2007 a A % Interest Rate Structure ®@ Floating Rate ® Fixed Rat
Slide 15: HTM Redemptions-Important Source of Funding
i] HALKBANK www,nalkbank.com.tr HTM Redemptions-Important Source of Funding Securities Portfolio FX Securities Portfolio FX Securities Portfolio (TRY million) (EUR million) (USD million) 7,944 745 253 340 2,340 H1 2007 2007 2008 «82009 «92010 3892011 2012) «2013 «2014 12007 2007 2008 12007 2007 = 20
Slide 16: Large Deposit Base
(4) HALKBANK Large Deposit Base www,nalkbank.com.tr TRY Deposits by Types (TRY billion) Deposits by Currency (TRY billion) ® Other Institution Deposits FX Deposits © Interbank © TRY Deposits: ®& Commercial ® Public Sector m Savings 20.7 ‘ 28.2 28.6 196 20.1 209 208 16.4 y a % 7% 5% % ‘s 1% 2005 2006
Slide 17: Improvement in Efficiency and Increasing Profitability
(4) HALKBANK Improvement in Efficiency and Increasing Profitability Net Interest Income (TRY million) (As a % of Total Income) 59% 56% 68% 68% 1.370 814 482 al al Decreasing securities portfolio coupled with the increasing share of loan book -NIl surged by 69% y-o-y base. Financial Institutions and
Slide 18: Increasing Fee Income-Effective Cost Management
] HALKBANK www. halkbank.com.tr Increasing Fee Income-Effective Cost Management Net Fee & Commission Income (TRY million) Operating Expenses (TRY million) (As a % of Total Income) (As a % of Total Income) 10% 14% 11% 13% 43% 41% 36% 37% 232 23 7 444 347 nl H1 2006 2006 H1 2007 672 155 157 116 2005 2
Slide 19: Effective Loan Approval Process
i] HALKBANK www.nalkbank.com.tr Effective Loan Approval Process Loan Loss Provisions (TRY million) (As a % of Average Net Loans) NPL/Total loans is decreasing 1.8% 1.2% 1.4% 0.9% ‘3 cf + and converging with the os sector averages in line with 62 loan portfolio increase and ial ial continuing NPL col
Slide 20: Balance Sheet
i] HALKBANK www,nalkbank.com.tr Balance Sheet (y-t-d) In TRY million 2005 H106 2006 H107 (%)Change Composition of Total Assets Cash and Balances Held with Central Bank(a) 1,286 2,909 2,551 2,640 3m Cash and Balances Hold with Central Bank (a) Banks 752-583. «1,079 474 (66) ee Tx Securities (b) 17,57
Slide 21: Income Statement
(4) HALKBANK Income Statement www, nalkbank.com.tr In TRY million Interest Income Interest Expense Net Interest Income Net Fees and Commissions Net Trading Income Other Operating Income Net Operating Revenues Operating Expenses Net Operating Income Provision for Loan Losses and Other Receivables Pro
Slide 22: For further information please contact
For further information please contact halkbank.IR@halkbank.com.tr (te [Fy HALKBANK