This document analyzes and compares the business models, capital management, liquidity and funding, cost structure, and performance of Vakifbank and its peers (Halkbank, Garanti, Isbank, and Akbank) based on 2013 data. Some key findings are: 1) Vakifbank relies more heavily on net interest income than its peers, with 75% of its income coming from NII compared to 65-72% for other banks. It also has a larger proportion of retail loans compared to corporate loans. 2) Vakifbank has lower capital adequacy and capital allocation efficiency than its peers, with a Tier 1 ratio of 10.9% compared to 11.8

1. RESEARCH ANALYSIS
VAKIFBANK & ITS PEERS
Onur Ekinci
27.9.2015

2. BUSINESS MODEL  INCOME DISTRIBUTION
0%
20%
40%
60%
80%
100%
Vakifbank Halkbank Garanti İş bankası Akbank
75% 72%
65% 67% 65%
11% 14% 27%
19% 23%
3% 6%
3%
4%
8%
11% 8% 5%
10%
4%
INCOME DISTRIBUTION - 2013(Average)
Other Operating Income
Trading Income
Fees & Commisions
NII

3. BUSINESS MODEL  LOAN PORTFOLIO
33.28%
27.39%
35.64%
27.50%
37.45%
66.72%
72.61%
64.36%
72.50%
62.55%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Vakifbank Halkbank Garanti İş bankası Akbank
LOAN PORTFOLIO - 2013E
Corporate
Retail

4. CAPITAL MANAGEMENTCAPITAL ADEQUACY
10.9%
13.0%
13.9%
11.8%
14.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Vakifbank Halkbank Garanti İş bankası Akbank
CAPITAL ADEQUACY
Tier 1 Ratio -2013E
11
%

5. CAPITAL MANAGEMENTCAPITAL ALLOCATION EFFICIENCY
6.54% 6.66%
6.23%
5.44% 5.54%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Vakifbank Halkbank Garanti İş bankası Akbank
Interest Income/RWA ( 9M13)
Interest Income/RWA

6. CAPITAL MANAGEMENT  ASSET QUALITY
CREDIT ANALYTICAL CAPABILITIES (Underwriting-Monitoring-Collection)
4.20%
2.80%
2.30%
2.00%
1.40%
4.01%
2.74%
1.95%
1.76%
1.23%
3.94%
2.61%
1.96%
1.77%
1.33%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
Vakifbank Halkbank Garanti İş bankası Akbank
NPL Ratio
1Q13
2Q13
3Q13

7. CAPITAL MANAGEMENT  ASSET QUALITY
CREDIT ANALYTICAL CAPABILITIES (Underwriting-Monitoring-Collection)
1.46%
0.67% 0.73% 0.77%
0.96%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
Vakifbank Halkbank Garanti İş bankası Akbank
Provisions/RWA (Cost of Risk-9M13)
Provisions/RWA(Cost of Risk)

8. CAPITAL MANAGEMENT  ASSET QUALITY
CREDIT ANALYTICAL CAPABILITIES (Underwriting-Monitoring-Collection)
26.90%
74.40%
52.00%
52.20%
30.90%
36.00%
70.60%
43.90%
71.40%
34.90%
46.30%
64.40%
45.80%
69.50%
29.20%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Vakifbank Halkbank Garanti İş bankası Akbank
Collections/Fresh NPL
1Q13
2Q13
3Q13

9. LIQUIDITY & FUNDING MANAGEMENT
45.79%
46.10%
48.43%
48.80%
45.27%
43.00%
44.00%
45.00%
46.00%
47.00%
48.00%
49.00%
50.00%
Vakifbank Halkbank Garanti İş bankası Akbank
Interest Expense/Interest Income
Interest Expense/Interest Income

10. LIQUIDITY & FUNDING MANAGEMENT
79.87%
86.00%
69.95% 71.63% 74.75%
3.13%
5.92%
13.64%
4.96%
5.16%
8.27%
2.62%
8.95%
13.69% 10.99%
5.42%
4.15% 7.05% 8.42% 8.57%
3.30%
1.31% 0.41%
1.30% 0.53%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Vakifbank Halkbank Garanti İş bankası Akbank
Interest Expense Distribution (9M13)
Diğer
İhraç Edilen MK
Para Piyasası
Kullanılan Krediler
Mevduat

11. LIQUIDITY & FUNDING MANAGEMENT
106%
89%
104% 111%
103%
0%
20%
40%
60%
80%
100%
120%
Vakifbank Halkbank Garanti İş bankası Akbank
Loan/Deposit Ratio
9M13
5.1%
4.3%
4.9%
4.3% 4.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Vakifbank Halkbank Garanti İş bankası Akbank
Cost of Deposit
9M13

12. COST STRUCTURE
33.3%
36.9%
32.5%
42.8%
38.1%36.8%
40.5% 38.8%
49.5%
31.4%
51.6%
39.7%
56.6%
47.6%
41.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Vakifbank Halkbank Garanti İş bankası Akbank
Operating Cost/Income
1Q13
2Q13
3Q13

13. PERFORMANCE MANAGEMENT
27.9.2015

14. PERFORMANCE MANAGEMENT (9M13)
27.9.2015
3.55% 3.60%
3.21%
2.78% 3.03%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Vakifbank Halkbank Garanti İş bankası Akbank
NII/RWA
NII/RWA
1.02% 1.10%
1.53%
1.22% 1.28%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
(Fees and Commissions & Other Income)/RWA
Fees and Commissions
& Other Income/RWA
0.20%
0.52%
0.11% -0.02%
0.99%
-0.20%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
Trading Income/RWA
Trading
Income/RWA
1.89%
1.96%
2.04%
1.94%
1.73%
1.55%
1.60%
1.65%
1.70%
1.75%
1.80%
1.85%
1.90%
1.95%
2.00%
2.05%
2.10%
Operating Expenditure/RWA
Operating
Expenditure/RWA

15. PERFORMANCE MANAGEMENT(9M13)
27.9.2015
1.89%
1.96%
2.04%
1.94%
1.73%
1.55%
1.60%
1.65%
1.70%
1.75%
1.80%
1.85%
1.90%
1.95%
2.00%
2.05%
2.10%
Operating Expenditure/RWA
Operating
Expenditure/RWA
1.46%
0.67% 0.73% 0.77%
0.96%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
Provisions/RWA (Cost of Risk)
Provisions/RWA(Cost of
Risk)

16. PERFORMANCE MANAGEMENT(9M13)
1.42%
2.60%
2.08%
1.27%
2.62%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
Vakifbank Halkbank Garanti İş bankası Akbank
RoRWA
RoRWA