Turkish Capital Markets

Turkish Capital Markets

December 2017

26

2

Turkish Economy at a Glance

Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile CONTENTS

3

18

44

68

TURKISH ECONOMY AT A GLANCE

KEY MACRO-ECONOMIC INDICATORS

4

2012 2013 2014 2015 2016

Population and Employment

Population (mn.) 75.6 76.7 77.7 78.7 79.8

Unemployment (average, %) 8.4 9.0 9.9 10.3 10.9

National Accounts

GDP (bn. $) 871.0 950.0 935.0 861.0 857.0

GDP per capita ($) 11,588 12,480 12,112 11,014 10,807

GDP, real growth (%) 4.8 8.5 5.2 6.1 2.9

External Balance

Exports (FOB, bn. $) 152.5 151.8 157.6 143.8 142.6

Imports (CIF, bn. $) 236.5 251.7 242.2 207.2 198.6

Foreign Trade Balance (bn. $) -84.1 -99.9 -84.6 -63.4 -56.1 Current Account Balance (bn. $) -48.0 -63.6 -43.6 -32.1 -32.6 Current Account Balance/GDP (%) -5.5 -6.7 -4.7 -3.7 -3.8 Foreign Direct Investment (net, bn. $) 9.5 9.3 5.8 12.5 9.1 CBRT Reserves (including gold, bn. $) 119.2 131.0 127.3 110.5 106.1

External Debt (bn. $) 339.5 389.8 401.9 396.1 404.2

Prices

CPI (y-o-y, %) 6.2 7.4 8.2 8.8 8.5

PPI (y-o-y, %) 2.5 7.0 5.4 5.7 9.9

Fiscal Balance

Primary Balance/GDP (%) 1.2 1.7 1.3 1.3 0.8

Budget Balance/GDP (%) -1.9 -1.0 -1.1 -1.0 -1.1

General Government Debt/GDP (%) 32.6 31.3 28.7 27.5 28.3

Exchange Rates

USD (year-end) 1.78 2.13 2.33 2.92 3.52

Euro (year-end) 2.35 2.93 2.83 3.18 3.71

Source: CBRT, Treasury, TurkStat

STRUCTURE OF THE

TURKISH CAPITAL MARKETS

CAPITAL MARKETS BACKGROUND

1982: Capital Markets Board established.

1985: Istanbul Stock Exchange (ISE) established.

1992: Takasbank (Settlement & Custody Bank) established.

1995: Istanbul Gold Exchange (IGE) established.

1997: Banks are forbidden to trade equities.

2001: Association of Capital Markets Intermediary Institutions of Turkey established.

Central Registry Agency established. Investors' Protection Fund established.

2002: Private pension system introduced.

2005: IFRS adopted for financial intermediaries and listed companies.

Turkish Derivatives Exchange (TurkDex) established.

Dematerialization of equities completed.

2006: Dematerialization of corporate bonds & mutual funds completed.

2009: Automated Disclosure Platform introduced.

Istanbul International Financial Centre strategy announced.

2011: Forex regulation passed.

2012: New Capital Markets Law passed.

ISE demutualised and merged with Istanbul Gold Exchange under Borsa Istanbul.

2013: Borsa Istanbul announced strategic partnership with Nasdaq.

Borsa Istanbul and TurkDex merged.

2014: The structure of the Association has changed and the membership base was expanded to cover asset management companies and investments trusts, in addition to brokerage firms and banks. The name of the Association was revised to Turkish Capital Markets Association.

2015: Takasbank introduced the Electronic Fund Distribution Platform (TEFAS).

Borsa Istanbul introduced new trading platform for equities (BISTECH).

2016: TCMA arbitration committees established.

Türkiye Wealth Fund established

2017: Auto-enrollment in the private pension system introduced.

6

REGULATORY STRUCTURE OF THE FINANCIAL MARKETS

Banking Capital Markets Insurance

Banking Regulation and

Supervision Agency (BRSA) Capital Markets Board (CMB) Undersecretariat of Treasury -Banks’ Association of Turkey

-Participation Banks’ Association of Turkey

-Association of Financial Institutions -Banks

-Participation Banks

-Savings Deposit Insurance Fund -Leasing Companies

-Factoring Companies

-Consumer Finance Companies -NPL Management Companies

-Turkish Capital Markets Association -Borsa Istanbul

-Banks

-Brokerage Firms

-Asset Management Firms -Investment Trusts

-Central Registry Agency

-Settlement and Custody Bank -Capital Markets Licensing and Training Agency

-Investor Compensation Center -Public and Listed Companies

-Insurance Association of Turkey -Insurance Companies

-Private Pension Companies -Private Pension Funds

CAPITAL MARKET INSTITUTIONS IN TURKEY

8

Rating Co.

Ind. Audit Co.

Settlement &

Custody Bank (Takasbank)

Capital Markets Board

Banks Brokerage Firms

Inv. Trusts Asset Mgmt. ^Co.

(SRO) TCMA Borsa

Istanbul

Central Registry

Agency Public Co.

Listed Co.

Licensing and Training

Agency

CAPITAL MARKETS BOARD

• Capital Markets Board (CMB) is the main regulatory and

supervisory authority for the securities markets and institutions in Turkey.

• The Board is responsible for the protection of rights and interests of investors.

• The CMB’s jurisdiction areas:

o Primary markets,

o Secondary markets,

o Investment services.

BORSA ISTANBUL

10

• Borsa Istanbul, formerly named as Istanbul Stock Exchange, was established in 1985.

• The exchange was demutualised in 2013.

• The exchanges operating in Turkey, namely Istanbul Stock Exchange, Istanbul Gold Exchange and the Turkish

Derivatives Exchange merged under the roof of Borsa Istanbul.

• Borsa Istanbul and NASDAQ OMX signed a partnership agreement in 2013. Technological infrastructure is

provided by NASDAQ OMX.

• European Investment Bank acquired a 10% share in 2015.

BORSA ISTANBUL

• The main markets and the traded securities on Borsa Istanbul are :

o Equity Market: Shares, rights coupons, ETFs, warrants, certificates.

o Debt Securities Market: Government bonds, corporate bonds, asset backed securities, Islamic bonds, repo-reverse repo transactions, Turkish eurobonds, money market.

o Derivatives Market: Single stock, equity index, gold, currency,

commodity, overnight repo, metal, ETF and power futures. Single stock, currency, equity index and mini index options.

o Precious Metals and Diamond Market: Gold, silver, platinum and

palladium.

TAKASBANK (ISTANBUL SETTLEMENT AND CUSTODY BANK)

12

• Takasbank was established in 1988 as a department of Borsa Istanbul. It was incorporated as a separate company in 1992 and became a non-

deposit taking bank in 1995.

• Takasbank is:

o The clearing and settlement centre for Borsa Istanbul,

o The central counterparty (CCP) for Borsa Istanbul Futures & Options Market,

o The national numbering agency of Turkey.

• It operates a money market.

• Takasbank operates the Securities Lending & Borrowing Market and acts as the CCP for this market as well as the Borsa Istanbul Money Market.

• The Bank allocates the legal entity identifier codes.

• It operates the Electronic Fund Distribution Platform (TEFAS).

• It records leveraged transactions and handles collateral management as

an authorized trade repository institution.

MERKEZI KAYIT ISTANBUL – CSD OF TURKEY

• Merkezi Kayit Istanbul – CSD of Turkey was established in 2001 as a private company.

• It is the only central depository for all dematerialized capital market instruments.

• The dematerialization process is completed for equities, mutual funds, corporate bonds, warrants, certificates, asset backed

securities and investors’ (excluding investment institutions)

government debt holdings.

INVESTOR COMPENSATION CENTRE

14

• Investors’ Protection Fund, which covered equity settlement obligations, was established in 2001.

• Investor Compensation Centre replaced the Investors’

Protection Fund in 2013 with the renewed Capital Market Law.

• It covers settlement obligations of all capital market

instruments, up to TL 125,451 (~$ 35,000) in 2017, in case of liquidation or bankruptcy of investment institutions.

• All investment institutions have to be a member of the Investor

Compensation Centre.

ACTIVITIES OF INTERMEDIARIES

• Equity Trading

• Leveraged FX trading

• Public Offering

• Asset Management

• Investment Consultancy

• Fixed Income Trading

• Derivatives Trading (exc. equity-linked products for banks)

BANKS

BROKERAGE

FIRMS

TYPES OF BROKERAGE FIRMS

16

Market Makers

Execution Brokers

Introducing Brokers

• execution of orders from their own account by positioning their customers as counterparty

• minimum capital: TL 25 million.

• execution of orders of in the name of customers and/or their own

account

• offering custody services

• minimum capital: TL 10 million.

• reception of orders and

transfer them to other brokers

• minimum capital: TL 2 million.

ASSET MANAGEMENT COMPANIES

Portfolio

Management Companies Real Estate

Portfolio Management

Companies Venture Capital

Portfolio

• May establish stock, bond, balanced mutual funds

• Mn. capital required varies btw.

TL 2 million and 10 million depending on AUM.

• May establish only real estate investment funds

• Mn. capital required varies btw. TL 1 million and TL 5 million depending on AUM.

• May establish only venture

capital investment funds

TURKISH CAPITAL MARKETS ASSOCIATION

TCMA

• Founded in April 2001.

• It is a self-regulatory professional organization in the Turkish capital markets.

• The structure of the Association was changed and its name was revised to Turkish Capital Market Association in 2014, in line with the new Capital Markets Law.

• TCMA is under CMB supervision.

• Association has 224 members as of November 2017; 82

brokerage firms, 44 banks, 50 portfolio management

MEMBERS

20

102 97 95 88 82

40 43 44

43 44

40 46 52 50

46 47 48

48

2013 2014 2015 2016 2017/11

Investment Trusts Asset Management Firms Banks Brokerage Firms

231 224 232

142

226

AIMS

• Contribute to the development of the capital market

• Meet the collective needs of members and facilitate solidarity among its members,

• Prevent unfair competition between its members,

• Enhance know-how in the sector.

FUNCTIONS

22

• Establish code of ethics for the profession,

• Establish professional rules and regulations,

• Conduct research,

• Offer educational programs,

• Assist in the resolution of disputes,

• Cooperate with related foreign institutions,

• Engage in financial literacy activities.

ORGANISATION

Chairman (Board of Directors)

Secretary General

Assistant Secretary

General

Discipline

Committee Board of

Auditors

Research &

Statistics

Information Technologies Corporate

Communications Training Compliance &

Surveillance Legal Affairs

Human Resources, Administrative &

Financial Affairs

Assistant Secretary

General

Membership Affairs Assistant

Secretary General

INTERNATIONAL MEMBERSHIPS

24

• Asia Securities Forum (ASF) member since 2009.

• Federation of Euro-Asian Stock Exchanges (FEAS) affiliate member since 2009.

• OECD International Network on Financial Education (INFE) affiliate member since 2015.

• International Council of Securities Associations (ICSA) member since 2006.

• International Forum for Investor Education (IFIE) member since 2009.

International Forum for Investor Education/Asia Chapter founding member since 2010.

• International Organization of Securities Commissions (IOSCO) affiliate member since 2003.

• Islamic Financial Services Board (IFSB) observer member since 2016.

PARTICIPATIONS

CENTRAL REGISTRY AGENCY

• 5% stake

• one seat at the board of directors, out of 8 members BORSA ISTANBUL

• 1.3% stake

• one seat at the board of directors, out of 10 members CAPITAL MARKETS LICENSING & TRAINING AGENCY

• 49% stake

TURKISH CAPITAL MARKETS

BIST-100 INDEX & TRADING VOLUME

2,000 4,000 6,000 8,000 10,000 12,000

20,000 40,000 60,000 80,000 100,000 120,000

Trading Volume BIST-100 (TL)

Point Mn. TL

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

28

Source: Borsa Istanbul

504 627 555 614 795

2013 2014 2015 2016 2017/09

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

20%

30%

40%

50%

60%

70%

80%

90%

100%

Technology Financials Services Industrials

CONCENTRATION IN THE EQUITY MARKET (MCAP)

30

Source: Borsa Istanbul

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016

1-10 11-25 26-50 51-100 100+

No. of Equities

DOMESTIC MARKET CAPITALIZATION (2016, BILLION $)

158

London…

Euronext Shenzhen Hong KongNSE IndiaBSE IndiaDeutscheAustraliaSwissTMX South KoreaOMX NordicSingaporeMoscowTaiwanBrazilSpainJSE Saudi ArabiaPhilippinesAbu DhabiIndonesiaOslo BorsSantiagoMalaysiaThailandTel AvivWarsawMexicoBorsa…Qatar

Rank: 32

MARKET CAPITALIZATION/GDP (2016)

32

Source: WFE, IMF

1013%329%221%213%

20%

0% 40% 80% 120% 160% 200%

Hong KongSingaporeMalaysiaTaiwanTokyoSwissTMXJSE OMX NordicAustraliaThailandNYSE LuxembourgSouth KoreaPhilippinesEuronextSantiagoQatar London GroupNew ZealandSaudi ArabiaNasdaq OMXCasablancaKazakhstanHoChiMinhAbu DhabiNSE IndiaBSE IndiaIndonesiaShenzhenOslo BorsColomboDeutscheColombiaShanghaiMauritiusTel AvivWarsawMoscowBahrainAmmanMuscatWienerMexicoDubaiSpainBrazilMaltaLimaIrish

Borsa Istanbul Rank: 51

NUMBER OF SECURITIES IN THE EQUITY MARKET

352 348 341 327 330

56 65 67 69 65

30 24 22 18 18

328

640 846 1,071

1,307 Warrants+Certificate

ETF+Inv. Trusts Other Equities Equities

NUMBER OF LISTED COMPANIES (2016)

34

Source: WFE

5,821 3,541 3,506 3,419 381

0 500 1,000 1,500 2,000 2,500 3,000

BSE IndiaTokyoSpainTMX Nasdaq OMX London GroupSouth KoreaOMX NordicHong KongSingaporeNSE IndiaShenzhenIndonesiaShanghaiDeutscheEuronextAustraliaMalaysiaThailandTel AvivWarsawTaiwanNYSE Borsa IstanbulHoChiMinhColomboSantiagoTehranBrazilJSE

Rank: 24

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

817 873

1,023 1,014 1,012

EQUITY TRADING VOLUME (2016, BILLION $)

36

Source: WFE WFE definition excludes investment funds, ETFs, unit trusts, holding companies with a mere business of holding shares on the exchange.

Negotiated deals are included.

31,944 19,737 13,683 11,673

331

0 2,000 4,000 6,000 8,000 10,000

Nasdaq OMX NYSE BATS US Shenzhen BATS Chi-x…

Shanghai Tokyo Euronext London Group South Korea Hong Kong Deutsche TMX Swiss Australia Spain OMX Nordic NSE India Brazil Taiwan JSE Borsa Istanbul Thailand Saudi Arabia Moscow

Rank: 22

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2016)

Taipei South KoreaDeutscheEuronextAustraliaThailandTokyoSpainSwissBrazilNYSE Saudi Arabia London GroupNew ZealandOMX NordicHong KongHoChiMinhNSE IndiaOslo BorsWarsawMoscowTaiwanAthensMexicoDubaiEgyptIrishTMXJSE

Rank: 3

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION TL)

38

Source: Takasbank

3,023

6,296 5,565 ^7,423

9,949

2013 2014 2015 2016 2017/09

SHORT SELLING IN BORSA ISTANBUL

12%

16%

17% 17%

12%

4%

6%

8%

10%

12%

14%

16%

18%

20%

20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92 96 100 104 108 112 116 120 124 128 132 136 140 144 148 152 156 160 164 168 172 176 180 184 188

Short Selling Volume (bn. TL) Share in Total Volume

MARGIN TRADING

40

Source: TCMA

1,160 1,148 1,507 1,465 2,089

10,417

9,914

9,585 9,633

10,218

2013 2014 2015 2016 2017/09

Outstanding Loan Size (mn. TL) No. of Contracts

FUTURES TRADING VOLUME OF BORSA ISTANBUL

53

59

88

100 95

Futures Trading Volume (bn. TL) No. of Contracts (million)

1,025,444 107,967 66,946 190

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

CME Group ICE (Europe) Deutsche Börse ASX SFE Derivatives LME-London Montreal BM&FBOVESPA Shanghai FE Tokyo SE Dalian CE-China Zhengzhou CE Korea ICE (US) Hong Kong CFFEX- China NSE-India Taiwan FE Nasdaq OMX Moscow Euronext MCX-India JSE Spain BSE India Malasysia DE Borsa Istanbul

TRADING VOLUME IN FUTURES MARKETS (2016, BILLION $)

42

Source: WFE

Rank: 26

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

299

436 464 519

621

NUMBER OF LISTED CORPORATE BONDS (2016)

44

Source: WFE

8,901 7,276 5,383 5,311 519

0 1,000 2,000 3,000 4,000 5,000

London Group South Korea OMX Nordic BSE India Euronext Irish NSE India Shanghai Spain Wiener Oslo Bors JSE Buenos Aires Taipei Moscow Swiss Hong Kong Tel Aviv Colombia Borsa Istanbul Shenzhen Warsaw Lima Brazil Kazakhstan

Rank: 20

INVESTMENT INSTITUTIONS

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

46

Source: Borsa Istanbul

Excluding Central Bank and Takasbank.

1,802

1,141

942 1,125

748 143

117

117

184

144

2013 2014 2015 2016 2017/09

Brokerage Firms Banks

1,635 1,945

1,257

1,059

1,635

1,308

892

REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

11,508

13,229 14,700

13,546

5,303 1,271

1,397

1,614

1,331

865 Brokerage Firms Banks

12,779

14,626

16,315

14,877

6,168

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

48

Source: Borsa Istanbul

1,634 1,746

2,045 2,027 2,025

2013 2014 2015 2016 2017/09

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

745 865

1,131 1,154 1,106

85 5

4 6

15 Banks

Brokerage Firms 9

88 65 9 88 65 9 88 65 9 88 65 9 88 65 9 88 65 9 88 65 9 88 65 9 88 65 9 88 65 9 88 65 9 88 65

830 869

1,135 1,160 1,121

FOREX TRADING VOLUME (BILLION TL)

50

Source: TCMA

2,970 4,353

9,546

12,245

3,759 1,986

3,340

7,459

9,604

3,152

2013 2014 2015 2016 2017/09

Liquidity Provider Client

4,956

6,911 21,850

17,005

7,693

CONCENTRATION IN TRADING VOLUMES (2017/09)

57%

73% 68% 66%

26%

20% 20% 23%

18% 7% 11% 10%

51+ 21-50 11-20 1-10

No. of Intermediaries

No. of Intermediaries

TOP 10 MEMBERS IN THE MARKETS (2017/09)

52

Source: Borsa Istanbul, TCMA

Equity Market Futures Market

1 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 9% 1 IS YATIRIM MENKUL DEGERLER A.S. 15%

2 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 2 GARANTI YATIRIM MENKUL DEGERLER A.S. 11%

3 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 7% 3 TEB YATIRIM MENKUL DEGERLER A.S. 10%

4 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 4 AK YATIRIM MENKUL DEGERLER A.S. 6%

5 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 5% 5 DENIZ YATIRIM MENKUL KIYMETLER A.S. 6%

6 FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 5% 6 FINANS YATIRIM MENKUL DEGERLER A.S. 5%

7 A1 CAPITAL YATIRIM MENKUL DEĞERLER A.Ş. 4% 7 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 4%

8 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4% 8 A1 CAPITAL MENKUL DEGERLER A.S. 4%

9 MERRILL LYNCH YATIRIM BANK A.Ş. 4% 9 GEDIK YATIRIM MENKUL DEGERLER A.S. 3%

10 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4% 10 CREDIT SUISSE ISTANBUL MENKUL DEGERLER A.S. 3%

Total (bn. TL) 2,025 Total (bn. TL) 1,121

Fixed Income Market Forex Market

1 AKBANK T.A.Ş. 15% 1 GCM MENKUL KIYMETLER A.Ş. 13%

2 HSBC BANK A.Ş. 11% 2 IŞIK MENKUL DEĞERLER A.Ş. 9%

3 TÜRKİYE GARANTİ BANKASI A.Ş. 10% 3 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 9%

4 TÜRK EKONOMİ BANKASI A.Ş. 7% 4 AK YATIRIM MENKUL DEĞERLER A.Ş. 8%

5 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 5 INVEST-AZ MENKUL DEĞERLER A.Ş. 8%

6 YAPI VE KREDİ BANKASI A.Ş. 6% 6 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 7%

7 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 5% 7 İNTEGRAL YATIRIM MENKUL DEĞERLER A.Ş. 5%

8 TÜRKİYE İŞ BANKASI A.Ş. 5% 8 DESTEK MENKUL DEĞERLER A.Ş. 3%

9 FİNANSBANK A.Ş. 5% 9 VENBEY YATIRIM MENKUL DEĞERLER A.Ş. 3%

10 CITIBANK A.Ş. 4% 10 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 3%

Total (bn. TL) 892 Total (bn. TL) 6,911

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

284

465

608 702 715

43

63

34

90 80

34

83

87

72 72

21

14

6

2

21

14

11

15 10

Privatization M&A

IPO&SPO-Equities Corporate Actions Other Consultancy Bond Issuance

746 644

409

883 886

INITIAL PUBLIC OFFERINGS

54

Source: Borsa Istanbul

1,381 714 119 343 1,254

19

13

6

2

3

2013 2014 2015 2016 2017/09

IPO Volume (mn. TL) No. of IPOs

CORPORATE DEBT SECURITIES ISSUANCE

330

517

621

760 853

Size of Corporate Bonds Issued (bn. TL) No. of Corporate Bonds Issued

INSTITUTIONAL INVESTMENTS (BILLION TL)

56

Source: Borsa Istanbul, TCMA

30 33 37 44 55

26 38 48

58 74

0.3

0.3

0.3

0.3

0.3

18

22

21

24

26

1.0

1.5

1.3

1.1

1.8

2013 2014 2015 2016 2017/09

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds Mutual Funds

130

76

94

108

156

ASSET MANAGEMENT BY BROKERAGE FIRMS

2,753 2,923

2,649

3,709

4,131 Assets Under Management (mn. TL)

No. of Investors

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

58

Source: CMB, TCMA

64,828 81,848 100,995 121,666 146,472

2,168 2,277

2,688

3,074 3,204

0 500 1,000 1,500 2,000 2,500 3,000 3,500

2013 2014 2015 2016 2017/09

Assets Under Management (mn. TL) No. of Investors

BROKERAGE FIRMS’ BRANCH NETWORK

153 150

323

310 298

71 67

76

59 41

Bank Branches Branches Rep. Offices

6,780 6,162

7,288 7,174

6,881

BROKERAGE FIRMS’ EMPLOYEES

60

Source: TCMA

5,480 5,657

6,632 6,478

4,741

2013 2014 2015 2016 2017/09

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

615

698 720 712

BANKS’ EMPLOYEES

62

Source: BRSA

214,226 216,912 217,504 210,886 209,672

2013 2014 2015 2016 2017/09

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

13.0 14.1 14.2

20.1

22.2

14.0 15.1 15.3

21.2

23.3

3.3 3.7 4.0 4.3 4.4

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

64

Source: TCMA

1,394

1,587

2,001 2,175

1,802

226 281 301 332

529 520

372 433 483 554

2013 2014 2015 2016 2017/09

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

895 1,017

1,332 1,511

1,055

52 78

89

106

133 222

136

170

164

257 152

308

360

358

341 Brokerage Commissions Proprietary Trading Profits Corporate Finance

Asset Management Others

1,394

1,587

1,802

2,001

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

66

Source: TCMA

373

472

571

618

410

507

609 656

365

456

552

598

2014 2015 2016 2017/09

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

230

296

347

303

65

88 105 100

70

91 111 104

Total Revenues Operating Profit Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

68

Source: TCMA

134

177

211 196

69

91

99

85 1

4

4

2 25

22

20

14

2014 2015 2016 2017/09

Discretionary Asset Mgmt. Fund Sales

Financial Advisory Investment Trust Mgmt.

Pension Fund Mgmt. Mutual Fund Mgmt.

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

70

Source: BRSA, CRA, TCMA estimates

946 1,053 1,245 1,453 1,635

500

555

574

627

709

195

249

226

247

320

2013 2014 2015 2016 2017/09

Equities

Fixed Income

Deposits 1,856

2,045

2,327

1,641

2,663

SAVINGS OF DOMESTIC INVESTORS

66% 66% 67% 69% 69%

29% 28% 28% 27% 26%

5% 6% 5% 5% 5%

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

72

Source: BRSA, CRA, TCMA estimates

Total Foreign Inv. Savings as of

2017/09: TL 458 bn

19% 18% 26% 27% 27%

39% 36%

30% 28% 28%

42% 46% 44% 45% 46%

2013 2014 2015 2016 2017/09

Equities

Fixed Income

Deposits

NUMBER OF EQUITY INVESTORS

(thou.) 2013 2014 2015 2016 2017/09

Domestic Investors 1,100.9 1,065.5 1,049.2 1,031.3 1,037.4

1,095.2 1,059.6 1,043.5 1,025.9 1,032.1

5.1 5.2 5.0 4.7 4.6

0.6 0.7 0.7 0.7 0.7

Foreign Investors 9.6 9.9 9.8 9.5 9.5

6.0 6.2 6.2 6.2 6.1

1.3 1.4 1.5 1.4 1.5

2.3 2.3 2.1 1.9 2.0

Total 1,110.4 1,075.4 1,059.0 1,040.8 1,046.9

For. Individuals

For. Corporations For. Institutionals Dom. Individuals Dom. Corporations Dom. Institutionals

Number of Equity Investors

Source: CRA

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

74

Source: CRA, Borsa Istanbul

73 90 85 89 111

121 159 141 157

209 310

378

329 368

475

2013 2014 2015 2016 2017/09

Privately Held Foreigners' Portfolio Domestics' Portfolio

504

627

555

614

795

SHARE OF FOREIGN INVESTORS

4%

8%

12%

16%

20%

24%

28%

32%

10%

20%

30%

40%

50%

60%

70%

80% Share in Free Float Mcap (left) Share in Trading Volume (right) MCap Vol.

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

76

Source: CRA

Total equity portfolio as of 2017/09: TL 319 bn

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017/09

For. Other

For. Corporation For. Individual Dom. Other

Dom. Corporation Dom. Individual

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

NUMBER OF CORPORATE BOND INVESTORS

78

2013 2014 2015 2016 2017/09

Domestic Investors 164,886 136,441 135,690 96,771 84,523

159,613 132,132 131,798 93,217 81,256

4,304 3,601 3,197 2,886 2,639

969 708 695 668 628

Foreign Investors 1,672 1,384 1,066 705 582

1,614 1,330 1,034 677 552

38 36 24 25 26

20 18 8 3 4

Total 166,558 137,825 136,756 97,476 85,105

Number of Corporate Bond Investors

Dom. Individuals Dom. Corporations

Source: CRA

Dom. Institutionals

For. Individuals

For. Corporations

For. Institutionals

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

MUTUAL FUND INVESTORS

80

Source: CRA

31.0 36.2 38.9 45.1 52.7

2.77 2.75

2.92 2.91

2.96

2.5 2.6 2.7 2.8 2.9 3.0 3.1

- 10.0 20.0 30.0 40.0 50.0 60.0

2013 2014 2015 2016 2017/09

Portfolio Size (bn. TL)

Number of Investors (mn.)

PENSION FUND INVESTORS

26.0

37.6

48.0

60.8

73.1 2.4

4.1

5.1

6.0

6.6

PP 6.8 AE 3.3

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

Total Portfolio Size (bn. TL) Portfolio Size (bn. TL)

Number of Investors (mn.)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES (BROKERAGE FIRMS ONLY)

82

Source: TCMA

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017/09

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

FOREX TRADING VOLUME OF BROKERAGE FIRMS

20%

40%

60%

80%

100%

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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