The results of the 2013 evaluation of TEB’s financials prepared according to the BRSA regulations is as follows:

TEB’s net profit increased by 8% and was realized as 535 million TRY in 2013, which is an indicator of strong performance in core banking operations and improved operational efficiency.

By December 31, 2013, TEB’s total assets increased by 23% on a year to date basis and reached 53.409 billion TRY, while loans increased by 28% and reached 38,135billion TRY, continuing to support its retail and institutional customers. Within the scope of providing services to an expanded customer base, retail loans increased by 30% and reached TL 12,162 million. As an indicator of TEB’s consistent contribution to the economy, the total of SME, commercial and corporate loans reached 26,686 composing 69% of loans.

TEB granted all of its deposits to its customers in the form of loans and the loans to deposit ratio was 111.2% as of year-end 2013. Our Bank covers a large portion of its funding need through time deposits which grew above the sector and reach 18.4%. Share ratio of deposits, of its funding need through deposits. The share ratio of deposits, which constitute our Bank’s primary funding source, is 64% in the liabilities and shareholder’s equity. Meanwhile, the volume of demand deposits reached TRY 5,424billion, providing a significant reduction in our Bank’s funding costs.

TEB is diversifying its funding base by international borrowings. In order to provide long term funds, the Bank continued to obtain syndication loans and similar loans from international markets. Despite the adverse developments in the global financial markets in the second half of the year, TEB was able to renew its syndication loan obtained from international markets with one year maturity, consisting of two tranches € 310million and $ 140million which denotes an increase of 127% in comparison with the previous year and signed the dual currency term loan facility agreement on 22 August 2013. The loan will cost Libor/Euribor + 0.75% per annum in total, which is the lowest rate for 2013 in Turkish banking sector and be used for financing of international trade.

During 2013, to strengthen the capital adequacy ratio, Bank issued bonds in international markets amounting to €125 million and $65 million with 10 year maturity and 5 year early payment option in the form of subordinated loans. Within the framework of the agreements signed between our Bank and various banks and financial institutions, as of year end 2013 bank has outstanding subordinated debts of $ 280 million and € 400 million.

To diversify its funding resources through international borrowings and offer its customers an alternative to deposit bank issued nominal value of  367.4 million TL  bond with a tenor of 174 days on January 2013, nominal value of  99.7 million TL  bond with a tenor of 405 days on March 2013, nominal value of  200 million TL  bond with a tenor of 386 days on May 2013, nominal value of  350.0 million TL  bond with a tenor of 148 days on October 2013, nominal value of  250 million TL  bond with a tenor of 169 days on December 2013, amounting to a total of TL 1,264.4 million.  Bonds issued in January were redeemed and by December 2013, total outstanding bonds issued amount is TL 899.7 million.