Distinguished shareholders, customers and employees,

As a responsible and good bank that is focused to its customers, TEB has completed a successful year which was aimed at sustainable growth despite the volatility at home and abroad. TEB has given priority to market conditions and legal regulations as the most sensitive issues and the Bank has continued to adhere to a high level of compliance culture.

TEB’s assets increased by 11% on an annual basis amounting to TL 79.7 billion by the year-end while the Bank’s net profit for the year was TL 941.8 million. Loans grew by 6% to TL 56 billion, on the other hand, total deposits increased by 12% and reached TL 49.8 billion. Profit for the period has been a source of asset and loan growth and our capital adequacy ratio rose from 13.94% to 14.37% as of year-end. The effects of economic developments on the Bank’s balance sheet were closely monitored. With the effective risk management policies, it is ensured that the ratio of the non-performing loans within the total loans stood at 3.08%, which was below the sector average.

We continued our support for all the segments of economy both in our country and abroad along with our partner BNP Paribas. Our Bank has been vigorously supporting the SME’s and women entrepreneurs, which we deem as an important part of production and employment.

With our partner BNP Paribas, TEB continued to make a difference to its customers in 2016 in a wide range of services, from foreign trade financing to cash management and investment banking.

TEB has given priority to digital platforms and Alternative Distribution Channels that are aimed at serving customers closely and has won many awards in these fields in 2016. The transformation for 2020s

to become a digital and agile bank, where customer satisfaction is at the forefront, has begun. Technological developments and customer expectations are identified as the main contributors for these efforts which will prepare our Bank for the future.

TEB continued to reduce operating costs and its income-expenditure ratio by transferring the branch transactions made during 2016 to digital channels.
Individual loans and the credit card application processes are totally digitalized and finalized with no need to physically go to the branch, thus improvement is attained in the processes and the customer experience. In 2016, 82% of TEB’s customers used digital banking channels, with customers making increasing use of this channel.

CEPTETEB Digital Banking Platform that was launched in 2015, enlarged its customer base in 2016, reached 350 thousand customers and TL 3.3 billion deposits, further developed the customer experience in digital channels.

We hereby present the operating results and financial statements of TEB for 2016 fiscal year for your comments and review. On behalf of the Board of Directors and myself, I would like to thank you, our valued shareholders, our team, our customers and our business partners for accompanying and having confidence in us throughout our journey.

Board of Directors