1. © 2016 Promontory Financial Group, LLC. All rights reserved. WASHINGTON, D.C. ATLANTA BEIJING BRUSSELS DENVER DUBAI DUBLIN HONG KONG ISTANBUL LONDON MADRID MILAN NEW YORK PARIS SAN FRANCISCO SINGAPORE SYDNEY TOKYO TORONTO Turkey & MENA Region: Banking Figures and Links Session 1: Strengthening Banking and Capital Markets Links Walid Alameddine CEO, Middle East North Africa and Turkey Promontory Financial Group 11 th Turkish - Arab Economic Forum April 28, 2016 Istanbul, Turkey

2. 2 © 2016 Promontory Financial Group, LLC. All rights reserved. Walid Alameddine Table of Contents SectionPage Turkish Banking Industry3 Middle East Banks in Turkey4 Turkish Banks in the Middle East5 Turkish Sukuk Market6 FDI Inflow to Turkey and M&A Market7 Foreign Real Estate Investments in Turkey8

3. 3 © 2016 Promontory Financial Group, LLC. All rights reserved. Walid Alameddine Turkish Banking Industry As of 2015, Total Asset Size of Turkish Banking Industry reached USD 872 bn. Top 10 Largest Turkish Banks constitute 81% of the Turkish Banking Industry. Rank Bank Total Assets (USD m) % of Total Assets 1 Türkiye Cumhuriyeti Ziraat Bankası112,05412.8% 2 Türkiye İş Bankası102,01511.7% 3 Türkiye Garanti Bankası94,10710.8% 4 Akbank86,87910.0% 5 Yapı ve Kredi Bankası81,5379.3% 6 Türkiye Halk Bankası69,4608.0% 7 Türkiye Vakıflar Bankası67,6907.8% 8 Finansbank (acquired by QNB)31,7193.6% 9 Denizbank31,1613.6% 10 Türk Ekonomi Bankası26,6253.1% Others (43 Banks) 169,11319.4% TOTAL 872,360100% Banking Sector Sizes as of 2015 (USD bn) Source: Research

4. 4 © 2016 Promontory Financial Group, LLC. All rights reserved. Walid Alameddine Middle East Banks in Turkey Turkish Subsidiary Parent Country Parent BankTotal Assets Albaraka Turk (*)BahrainAl-BarakaUSD 10,938 m A-Bank (**)QatarCommercial Bank of QatarUSD 4,865 m Arap Turk BankLibyaThe Libyan Foreign BankUSD 1,489 m Burgan BankKuwaitBurgan BankUSD 3,949 m Finansbank (***)QatarQatar National Bank (QNB)USD 31,719 m Kuveyt Turk (*)KuwaitKuwait Finance House (KFH)USD 15,559 m Odea BankLebanonBank AudiUSD 11,870 m T-Bank (Turkland Bank) Lebanon Jordan Bankmed ArabBank USD 2,091 m Turkiye Finans (*) Kingdom of Saudi Arabia The National Commercial Bank USD 14,273 m (*) Participation / Islamic Banks (**) Commercial Bank of Qatar acquired 75% of A-Bank in August 2013 for USD 460 m from Anadolu Endustri Holding (***) QNB acquired Finansbank in December 2015 for USD 2.95 bn from National Bank of Greece % of Middle East Banks in the Turkish Banking Industry; Total Asset Size of 9 Middle East Banks is USD 97 bn and it constitutes 11% of the Turkish Banking Industry (USD 872 bn) Total Shareholders Equity of 9 Middle East Banks is USD 5 bn and it constitutes 5% of the Turkish Banking Industry (USD 97 bn) Middle East BanksOther Banks Source: Banks’ Audited Financials

5. 5 © 2016 Promontory Financial Group, LLC. All rights reserved. Walid Alameddine Turkish Banks in the Middle East BankCountry Albaraka TurkIraq (Erbil) Branches Bank AsyaIraq (Erbil) DenizbankBahrain FinansbankBahrain ING BankBahrain Is BankBahrain, Iraq (Erbil) Kuveyt TurkBahrain HalkbankBahrain VakifbankBahrain, Iraq (Erbil) Yapi KrediBahrain Ziraat BankIraq (Erbil), Kingdom of Saudi Arabia Akbank United Arab Emirates (Akbank Dubai) Subsidiaries Kuveyt Turk United Arab Emirates (Kuveyt Turk Dubai)

6. 6 © 2016 Promontory Financial Group, LLC. All rights reserved. Walid Alameddine Turkish Sukuk Market Total Value of Issued Sukuks IssuerTotal Value Turkey Sovereign SukukUSD 8.3 bn Turkiye FinansUSD 1.9 bn Kuveyt TurkUSD 1.5 bn Albaraka TurkUSD 0.8 bn Bank AsyaUSD 0.4 bn AktifbankUSD 55 m TotalUSD 13.1 bn As of April 2016; 54 sukuk issues were made in total in the Turkish market, with a total of USD 13.1 bn. Turkish bonds outstanding reached around USD 256 bn in Q1-2016; Sukuk market constitutes only 3.3% of the market. Total volume of outstanding Sukuk issues is around USD 8.5 bn. Regional Investor Breakdown of Foreign Currency Turkish Sukuk RegionTotal Value Middle East (ME)USD 2.7 bn United Kingdom (UK)USD 1.7 bn AsiaUSD 1.1 bn EuropeUSD 0.7 bn TurkeyUSD 0.5 bn OthersUSD 0.5 bn TotalUSD 7.5 bn According to information disclosed by the Banks; Middle Eastern Investors are the top investors of Foreign Currency Turkish Sukuk with around USD 2.7 bn. Source: Public Disclosure Platform (KAP)

7. 7 © 2016 Promontory Financial Group, LLC. All rights reserved. Walid Alameddine FDI Inflow to Turkey and M&A Market Net Foreign Equity Investments in Turkey (USD m) Largest Saudi / Middle East Investment in Turkey is the privatization of 55% of Turk Telekom to Saudi Oger Telecom for USD 6.5 billion in 2006. In 2012 and 2013, the share of Middle East Investments in Net Foreign Equity Investments in Turkey reached record highs with 10% and 15%, respectively. Odea Bank’s (Bank Audi) entry to the Turkish market and the sale of A-Bank to the Commercial Bank of Qatar were the driving forces of that increase. On yearly average, Middle East Investments constitute only 6.3% of the Net Foreign Equity Investments in Turkey. Turkey 2015 M&A Market 2015’s largest deal was in the private sector, was Qatar National Bank’s majority stake acquisition of Finansbank for USD 2.95 bn from National Bank of Greece in December 2015. (Deal was not included in Ministry of Economy’s 2015 Foreign Equity Investments statistics) Total number of M&A deals in 2015 was around 240, and Middle Eastern Investors were only involved in 14 transactions. Source: Republic of Turkey Ministry of Economy

8. 8 © 2016 Promontory Financial Group, LLC. All rights reserved. Walid Alameddine Foreign Real Estate Investments in Turkey House Sales to Foreigners Year Total Sales (Units) Sales to Foreigners % 2013 1,144,989 12,181 1.0% 2014 1,165,381 18,959 1.6% 2015 1,289,32022,991 1.8% New Capital Markets Instrument: Turkish Real Estate Investment Funds (REIFs) 2014-07: Capital Markets Board / SPK introduced Real Estate Investment Funds (REIFs). 2015-10: Turkey’s First REIF was established. A couple of Turkish Portfolio Management Companies signed strategic partnership agreements with Middle Eastern Companies to establish REIFs in Turkey. Source: Republic of Turkey Ministry of Economy, TurkSTAT Foreign Real Estate Investments in Turkey (USD m) According to TurkSTAT data, Foreigners coming from the GCC countries constitute almost 23% of the total Foreign Sales. (Share of Middle East Countries in total is 46%) House Sales to Foreigners by Nationality (2015) RankNationalityTotal Sales (Units) 1Iraq4,228 2Kingdom of Saudi Arabia2,704 3Kuwait2,130 4Russia2,036 5United Kingdom1,054 Others10,839 On average, foreign real estate investments account for 20% of all FDI inflows to Turkey. In 2014, share of real estate investments in the total FDI reached a record high with 35%.