A review of TEB’s financial statements that are drawn up in accordance with the regulations of the Banking Regulation and Supervision Agency (BRSA) reveals as follows:

TEB’s after-tax profit for 2015 went up by 42% to TL 882 million and the Bank posted a RoE of 14.7% in line with its strategies focused on profitability and productivity.

While the Bank’s total assets grew by 14% to TL 71,960 in 2015, total lending also expanded around 17% and reached TL 53.2 billion; in this context, the Bank continued to extend maximum support to its individual and corporate customers. As part of the strategy to offer service to a broader customer base, individual loans book expanded by 9% and reached TL 15 billion. Loans made available to SME, Commercial and Corporate customers that serve as a key indicator of TEB’s regular support to the national economy were worth TL 37.8 billion and accounted for 72% of the Bank’s performing loans portfolio.

As at end 2015, TEB converted the entirety of the deposits it has collected into loans and finished the year with a loans/deposits ratio of 120%. Time deposits volume that covers a substantial portion of the Bank’s funding need went up 10% and the ratio of total deposits to balance sheet liabilities was registered as 62%. On the other hand, demand deposits also reached TL 6.98 billion, making a significant contribution to the Bank in terms of funding cost.

TEB diversified its funding sources with international borrowings. The Bank continued to obtain syndication and similar loans from international markets in order to secure long-term funding. Despite the negative developments in global financial markets, on 19 August 2015 TEB signed a loan agreement of two tranches, in the amounts of EUR 385,000,000 and USD 175,000,000 in total with respective terms of 364 days and 367 days in a bid to channel the same to exporter companies, whose loans have matured in 2015. The all-in cost was LIBOR/EURIBOR +0.65% for the 364-day tranche and LIBOR/EURIBOR +0.75% for 367-day tranche of the facility that will be used for export financing.

As at the end of 2015, the Bank had ongoing subordinated loans in the total amount of EUR 400 million and USD 230 million based on agreements executed with various banks and financial institutions.

Within the frame of efforts to diversify funding sources and to present investors with alternative products besides deposits, the following TEB bonds with a total nominal value of TL 669.9 million were offered in domestic markets: a 175-day bond with a nominal value of TL 29 million in February 2015; a 180-day bond with a nominal value of TL 225 million in March 2015; a 173-day bond with a nominal value of TL 177.8 million in April 2015; a 89-day bond with a nominal value of TL 52.4 million in July 2015; a 89-day bond with a nominal value of 52.4 million in July 2015; a 89-day bond with a nominal value of TL 107.5 million in October 2015; and a 89-day bond with a nominal value of TL 78.2 million in November 2015.