ICBC TURKEY BANK A.Ş.

Table of Contents Turkish Economy ‘ICBC Turkey and ICBC’ in short Financial Highlights Financial Performance Credit Ratings

Turkish Economy Turkish Economy Overview & Country Rating Turkish Banking Sector

Long Term Issuer Default Rating Turkish Economy Overview & Country Rating 2013 2014 2015 2016 2017 GDP US$ 823.044 bil US$ 799.370 bil US$ 719.967 bil US$ 863.712 bil US$ 863,712 bil GDP Growth 4.2 3.0 4.0 3.2 3.4 Population 76,667,864 77,695,904 78,741,053 79,512,426 79,814,871 GDP Per Capita US $ 10,822 US$ 10,395 US$ 9,261 US$ 10,787 US$ 10,807 Current Account Deficit US$ 64.6 bil US$ 46.4 bil US$ 32.2 bil US$ 43,7 bil US$ 39,3 bil Inflation Rate 7.4 8.2 8.8 8.5 11.9 External Debt US$ 230.3 bil US$ 245.3 bil US$ 253.9 bil US$ 257.2 bil US$ 282.1 bil Unemployment Rate 9.7% 10.3% 9.9% 11.7% 11.1% International Reserves US$ 131.0 bil US$ 127.3 bil US$ 110.5 US$ 125 US$136 Import US$ 251.6 bil US$ $242.2 bil US$ 207.2 bil US$ 278 bil Export US$ 151.8 bil US$ 157.6 bil US$ 143.9 bil Data received from TURKSTAT CBRT UNDERSECRETARIAT OF TREASURY Country Rating Date Long Term Issuer Default Rating Outlook S&P February 24, 2018 BB Negative Moody’s March 08, 2018 Ba2 Stable Fitch January 20, 2018 BB+

Turkish Banking Sector US$ mio 2013 2014 2015 2016 2017 Total Assets 814,380 859,870 813,412 778,344 862,751 Loans 492,398 535,523 512,335 494,529 555,807 Loans / Assets 60.5 62.3 63.0 63.5 64.4 Non-Performing Loans 13,910 15,698 16,381 16,552 16,917 NPL Ratio 2.7 2.9 3.2 3.3 3.00 Deposits 444,550 454,336 429,776 414,644 453,437 Cash Loans / Deposits 114.08 121.61 123.37 117.70 120.70 Debts to Banks 119,514 126,590 124,596 119,164 125,904 Total Liabilities 723,309 760,006 722,919 692,875 767,731 SHE 91,071 99,864 90,492 85,469 95,019 Net Profit/Loss 11,600 10,619 8,996 10,691 13,000 CAR ratio 15.28 16.28 15.57 16.87 ROAA 1.60 1.33 1.16 1.50 ROAE 14.16 12.21 11.28 13.30 14.90 Data received from BRSA

‘ICBC Turkey and ICBC’ in short History and Ownership ‘ICBC’ in short ICBC Turkey Overview Branch Network ICBC Turkey’s paid-in capital base

History and Ownership 2015: Tekstil Bankasi A.S. has changed its legal name to ICBC Turkey Bank A.S. as of 19th of November 2015: Following the tender offer by ICBC for the remaining shares, 92.817% of Tekstilbank’s shares are held by ICBC as of 21st of August 2015: As of 22nd of May, Tekstilbank’s 75.5% GSD shares are acquired by ICBC 2014: SPA signed between GSD Holding and the ICBC on 29th of April 2002: GSD Holding (formerly GSD Foreign Trade Co.) became the major shareholder by increasing its stake to 75% 1992: GSD Foreign Trade Co. acquired 30% stake 1986: Founded by Akın Tekstil, a major textile manufacturer

ICBC Shareholder Structure & Ratings Ministry of Finance of the PRC 100% China Investment Corporation 100% HKSCC Nominees Limited Central Huijin Investment Ltd. Other Shareholders 34.60% 34.71% 24.24% 6.45% Bank Credit Ratings Ratings Agency Long Term Short Term Moodys A1 P1 S&P A

ICBC is the world’s largest bank The World’s Largest Bank by Assets Largest Banks by Market Capitalization Source: FXSSI, Jan 2018 Source: The Banker, Feb 2017 The 1st place among Top 1,000 World Banks (Ranking in terms of tier-1 capital of the Bank) The 1st place among the Global 2,000 (Overall ranking in terms of four aspects: sales, profit, assets and market value) The 29th place among the Global 500 Ranked first among all commercial banks (Ranking in terms of revenue) Source: The Banker

Extensive Global Platform ICBC’s Global Footprint China South Korea Japan HK Macau Vietnam Lao PDR Cambodia Bangkok Malaysia Singapore Indonesia Sydney Myanmar Mumbai Moscow Almaty Pakistan Dubai Saudi Arabia Abu Dhabi Kuwait Doha Canada New York Brazil Argentina Peru Warsaw Milan Madrid Paris London Amsterdam Frankfurt Luxemburg Brussels South Africa New Zealand USA Domestic and overseas institutions: 17,200 Overseas presence: 42 countries and regions with 412 institutions Corporate clients: 5.784 million Retail clients: 530 million 7 RMB Clearing Centres: Singapore, Bangkok, Luxembourg, Doha, Canada, Argentina, and Moscow Turkey *As of 2016 y.e.

Ranking (by asset size): #16* ICBC Turkey Overview # of branches: 44 Ranking (by asset size): #16* # of employees: 810 ** * Among private deposit banks as at 30 September 2017 ** As at 2017 y.e.

Branch Network Branches are predominantly located in the western regions, which account for the majority of Türkiye's GDP generation. Istanbul branches : 21 Anatolian branches : 22 Free-Zone branch : 1 Domestic Network : 44

ICBC Turkey’s paid-in capital base

Financial Highlights

Highlights of 2017 ICBC Turkey continued to expand its operations, as asset size increased by 13% in 4Q 2017 compared to the previous quarter. NPL ratio declined further to 1.3% vs. market average at 3%, pointing to the bank’s commitment to growing while maintaining risks. Both NII and fee income increased, resulting in a net profit of TL42.5mn in 2017 vs. TL13.7mn in 2016.

Financial Performance

Asset volume expanded by 13% in 4Q2017 * FX-indexed cash loans are included in FX assets

Loans increased by 13% in the last quarter of the year * FX-indexed cash loans are included in FX cash loans

Deposits decreased by 6% in Q417 * FX-indexed cash loans are included in FX cash loans

CAR is at 14.4%

Asset quality continued to improve, while NPL ratio declined to 1 Asset quality continued to improve, while NPL ratio declined to 1.3%, well below market average

Share of corporate commercial loans continued to be high in the loan portfolio

Group risk has come down signicantly* * Whole group loans are cash collateral

Non-cash loans increased in 4Q

Net interest income recovered as the securities portfolio expanded

...while higher fee income also contributed to better banking income

OPEX increased by 16% in 2017 vs. 2016

Summary Balance Sheet

Summary Income Statement * Foreign exchage gain / loss resulted from derivatives are included in FX Gain (loss), not in Net Trading Income (Loss)

Credit Ratings

As of 28 July 2016

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