Turkish Capital Markets

Turkish Capital Markets

September 2020

23

Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile CONTENTS

15

45

68

STRUCTURE OF THE

TURKISH CAPITAL MARKETS

CAPITAL MARKETS BACKGROUND

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 - BISTECH.

2016: TCMA arbitration committees established.

Turkey Wealth Fund established

REGULATORY STRUCTURE OF THE FINANCIAL MARKETS

5

Capital Markets Insurance

Banking Regulation and

Supervision Agency (BRSA) Capital Markets Board (CMB) Insurance and Private Pension Regulation and Supervision Agency

-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 -Payment Companies

-Electronic Money Companies -Rating, Audit Firms

-Financial Holding Companies

-Turkish Capital Markets Association

-Borsa Istanbul

-Turkish Appraisers Association -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 -Rating, Appraisal, Audit Firms

-Insurance Association of Turkey -Insurance Companies

-Pension Companies Banking

CAPITAL MARKET INSTITUTIONS IN TURKEY

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

7

• 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

• 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.

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

o

Equity Market: Shares, rights coupons, ETFs, warrants, certificates, real estate funds.

o

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

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)

9

• 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 for Borsa Istanbul Futures & Options, Debt Securities, Equities, Money and Swap markets

o The national numbering agency of Turkey.

• Takasbank operates the Securities Lending & Borrowing Market and Takasbank Money Market, and acts as CCP in those markets

• It offers clearing and central counter party services for Turkish Lira IRS (Interest Rate Swap) and OIS (Overnight Index Swap) contracts in OTC markets

• It serves as a custodian to private pension system.

• 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,

government debt holdings (excluding investment institutions), real estate sertificates and electronic warehouse receipts.

• Operates the Public Disclosure Platform.

• Runs various electronic services for investors and public companies such as; Investor Notification and Alert System (eCAS), Companies

Information Portal (e-Company), Electronic General Assembly (e-GEM),

corporate management and investor relations portal (e-Governance) or

INVESTOR COMPENSATION CENTRE

11

• 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 217,801 (~$ 36,000) in 2020, 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

13

Market Makers

Execution Brokers

Introducing Brokers

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

• minimum capital: TL 28.7 mn.

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

account

• offering custody services

• minimum capital: TL 11.5 mn.

• reception of orders and

transfer them to other brokers

• minimum capital: TL 2.3 mn.

ASSET MANAGEMENT COMPANIES

Portfolio

Management Companies

Real Estate/

Venture Capital Portfolio

Management Companies

• May establish stock, bond, balanced mutual funds

• Mn. capital required varies btw. TL 2.9 million and TL 14.4 million depending on AUM.

• May establish only real estate or venture capital investment funds

• Mn. capital required varies

btw. TL 1.4 million and TL

7.2 million depending on

AUM.

TURKISH CAPITAL MARKETS ASSOCIATION

TCMA

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

• Brokerage firms, banks, asset management companies, and investment trusts are members of the Association.

• Founded in April 2001 according to the Capital Markets Law.

• Membership base expanded in 2014 with new law.

• Membership is mandatory.

• Under CMB supervision

MEMBERS

17

88 80 78 74 72

43 44 44 44 45

52 50 56 54 51

48 48 49 49 49

2016 2017 2018 2019 2020/09

Investment Trusts Asset Management Firms Banks Brokerage Firms

227 221

222 217

231

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

19

• 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

21

• Asia Securities Forum (ASF) 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.

PARTICIPATIONS

CENTRAL REGISTRY AGENCY

• 5% stake

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

• 1.3% stake

CAPITAL MARKETS LICENSING & TRAINING AGENCY

• 49% stake

• 2 seats at the board of directors, out of 7 members JCR EURASIA CREDIT RATING AGENCY

• 6% stake

JOINT MORTGAGE FINANCE CORPORATION

• 5% stake

• one seat at the board of directors, out of 7 members

TURKISH CAPITAL MARKETS

BIST-100 INDEX & TRADING VOLUME

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000

01-18 02-18 03-18 05-18 06-18 08-18 09-18 11-18 12-18 01-19 03-19 05-19 06-19 07-19 09-19 10-19 12-19 01-20 03-20 04-20 06-20

Trading Volume BIST-100 ^{bn. TL}

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

25

Source: Borsa Istanbul 614

880 795 1,109 1,233

2016 2017 2018 2019 2020-06

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019

Technology Financials Services Industrials

CONCENTRATION IN THE EQUITY MARKET (MCAP)

27

Source: Borsa Istanbul 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019

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

No. of Equities

13,0026,191 24,097 185

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

Nasdaq OMXHong KongShanghaiEuronextTokyoNYSE London GroupJohannesburgSaudi ArabiaSouth KoreaOMX NordicPhilippinesShenzhenNSE IndiaBSE IndiaOslo BorsDeutscheAustraliaSantiagoMalaysiaThailandTel AvivMoscowTaiwanTehranMexicoSwissBrazilSpainTMX Borsa IstanbulHoChiMinhColombiaWarsawQatar

5,106

DOMESTIC MARKET CAPITALIZATION (2019, BILLION $)

Rank: 31 (out of 71)

25%

0% 50% 100% 150%

Hong Kong Saudi Arabia JohannesburgSouth KoreaOMX NordicEuronextAustraliaMalaysiaThailandJamaicaTaiwanTokyoSwissNYSETMX London GroupNew ZealandNasdaq OMXLuxembourgCasablancaPhilippinesHoChiMinhNSE IndiaBSE IndiaOslo BorsBarbadosDeutscheColombiaShanghaiMauritiusSantiagoTel AvivMoscowAmm anBahrainCroatiaTehranMexicoAthensQatarBrazilSpainMaltaLima Borsa IstanbulKazakhstanShenzhenPanamaWarsawMuscat

1,314%309273%255208%%%

MARKET CAPITALIZATION/GDP (2019)

29

Source: WFE, IMF

Rank: 45

NUMBER OF SECURITIES IN THE EQUITY MARKET

Equities: BIST Main+BIST Star

336 336 343 344 344

69 66 62 64 62

13 9 9 4 8

2016 2017 2018 2019 2020-06

Real Estate/Venture Capital Investment Trusts/Funds ETF

Other Equities Equities

418 411 414 412 414

5,082 3,708 3,413 3,140 3,036 379

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

BSE IndiaTokyoTMX Nasdaq OMXHong KongSpain London GroupSouth KoreaOMX NordicSingaporeNSE IndiaShenzhenIndonesiaShanghaiDeutscheEuronextAustraliaMalaysiaThailandTel AvivWarsawTaiwanTaipeiNYSE Borsa IstanbulBangladeshBangladeshHoChiMinhPhilippinesColomboSantiagoTehranHanoiSwissBrazil

NUMBER OF LISTED COMPANIES (2019)

31

Source: WFE

Rank: 25

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

1,014

1,468

1,993 2,130 2,323

2016 2017 2018 2019 2020-06

350

0 2,000 4,000 6,000

Nasdaq OMXShenzhenShanghaiBATS USTokyoNYSE BATS Chi-x EuropeBorsa IstanbulLondon GroupJohannesburgSaudi ArabiaSouth KoreaOMX NordicHong KongHoChiMinhSingaporeNSE IndiaIndonesiaBSE IndiaOslo BorsDeutscheEuronextAustraliaMalaysiaThailandTel AvivMoscowTaiwanTehranMexicoTaipeiBrazilSwissSpainTMX

39,683 15,432 7,815 11,288 13,150

EQUITY TRADING VOLUME (2019, BILLION $)

33

Source: WFE

Rank: 22 (out of 77)

222%305%

189%

0% 50% 100% 150% 200%

Shenzhen Nasdaq OMXTaipei Borsa IstanbulLondon GroupJohannesburgBuenos AiresNew ZealandSouth KoreaOMX NordicBangladeshHong KongHoChiMinhNSE IndiaOslo BorsShanghaiDeutscheEuronextAustraliaMalaysiaHungaryThailandTel AvivWarsawMoscowTaiwanAthensTokyoEgyptSpainSwissBrazilNYSETMXIran

331%

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2019)

Rank: 4

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (BILLION TL)

35

Source: Takasbank

7.4

13.0 14.2

22.0

5.2

2016 2017 2018 2019 2020/06

SHORT SELLING IN BORSA ISTANBUL

170 184 185 135 76

17%

13%

9%

6%

3%

0%

5%

10%

15%

20%

25%

0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92 96 100 104 108 112 116 120 124 128 132 136 140 144 148 152 156 160 164 168 172 176 180 184 188 192 196

2016 2017 2018 2019 2020/06

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

MARGIN TRADING

37

Source: TCMA

1.5 2.1 1.8 2.8 4.3

9,390

10,670

12,101

11,895

16,663

2016 2017 2018 2019 2020/06

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

FUTURES TRADING VOLUME OF BORSA ISTANBUL

580 829 1,259 1,435 1,179

100

139

232

389

475 Futures Trading Volume (bn. TL)

No. of Contracts (million)

1,392,947314,373244,897 241

0 5,000 10,000 15,000

Chicago Mercantile…Deustche BoerseSaint PetersburgDubai Gold and…Taiwan Futures…BM&F BovespaJohannesburgBorsa IstanbulZhengzhou CECFFEX- ChinaMalasysia DEICE (Europe)Shanghai FELME-LondonOMX NordicAsia-PasificHong KongMCX-IndiaNSE-IndiaBSE IndiaArgantinaTokyo SEMoscowWarsawTAIFEXMexicaOsakaKoreaSpainASX

98,397 46,309 26,917 17,366

TRADING VOLUME IN FUTURES MARKETS (2019, BILLION $)

39

Source: WFE WFE: $ 2,229 trillion

Rank: 25 (out of 37)

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

464 519

662 611

511

2015 2016 2017 2018 2019

8,561 6,6023,166 511

0 500 1,000 1,500

Shanghai South Korea London GroupBuenos AiresHong KongNSE IndiaShenzhenDeutscheColombiaPanamaTel AvivMoscowTaipeiSwiss Borsa IstanbulNew ZealandCasablancaOMX NordicKazakhstanHoChiMinhCosta RicaColomboMauritiusLjubljanaMalaysiaHungaryWarsawTunisiaNigeriaMuscatTehranEgyptBrazilLimaIran

11,386 2,6201,540

NUMBER OF LISTED CORPORATE BONDS (2019)

41

Source: WFE

Rank: 15

INITIAL PUBLIC OFFERINGS

343

1,254

5,419 263

70 2

3

9

6

2

2016 2017 2018 2019 2020/06

IPO Volume (mn. TL) No. of IPOs

EQUITY FINANCING

43

Source: Borsa Istanbul

0.3 1.3

5.4

0.3 0.1

1.6

3.8

9.6

6.1

15.8

2016 2017 2018 2019 2020/06

SPO + Rights Issue (bn. TL) IPO (bn. TL)

2.0

5.1

15.0

6.3

15.9

CORPORATE DEBT SECURITIES ISSUANCE

90 130 179 210 114

621

1,217

1,385

1,330

649

2016 2017 2018 2019 2020/06

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

INVESTMENT INSTITUTIONS

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

634 581 594 635

361 26

38 71

71

36 32

22

32

46

47

2016 2017 2018 2019 2020/06

Eurobond Corporate Bonds Government Bonds 752

444 556

642

698

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

47

Source: Borsa Istanbul Excluding Central Bank and Takasbank.

13,546

6,177 5,512

21,688

11,385 1,331

1,177 1,138

5,659

3,594

2016 2017 2018 2019 2020/06

Brokerage Firms Banks

14,877

7,354

6,650

27,346

14,979

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

2,027

2,773

3,626 3,906 4,382

163

361

354

292

2016 2017 2018 2019 2020-06

Banks Brokerage Firms

3,987

4,260

2,936

2,027

4,674

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

49

Source: Borsa Istanbul 1,154

1,628

2,424 2,684

2,249 4

6

31

74

119

2016 2017 2018 2019 2020/06

Banks Brokerage Firms

1,160

1,658

2,499

2,803

2,358

FOREX TRADING VOLUME (BILLION TL)

9,546 12,245

4,667 4,494 4,121

9,604 3,912

5,211

3,610

2,538

2016 2017 2018 2019 2020/06

Liquidity Provider Client

7,731 9,705

8,578 21,850

5,577

CONCENTRATION IN TRADING VOLUMES (JANUARY-JUNE 2020)

51

Source: Borsa Istanbul, TCMA

62% 66% 64%

79%

25% 23% 23%

13% 11% 12% 18%2%

Equity Fixed Income Futures Forex (Customer)

51+ 21-50 11-20 1-10

No. of Intermediaries

TOP 10 MEMBERS IN THE MARKETS (JANUARY-JUNE 2020)

Equity Market Futures Market

1 YAPI KREDİ YATIRIM 13% 1 YAPI KREDİ YATIRIM 15%

2 İŞ YATIRIM 10% 2 İŞ YATIRIM 9%

3 AK YATIRIM 6% 3 GARANTİ YATIRIM 7%

4 MERRILL LYNCH 6% 4 QNB FİNANS YATIRIM 6%

5 GARANTİ YATIRIM 6% 5 İNFO YATIRIM 5%

6 GEDİK YATIRIM 5% 6 DENİZ YATIRIM 5%

7 QNB FİNANS YATIRIM 4% 7 AK YATIRIM 5%

8 VAKIF YATIRIM 4% 8 TACİRLER YATIRIM 4%

9 İNFO YATIRIM 4% 9 TEB YATIRIM 4%

10 A1 CAPITAL YATIRIM 4% 10 MERRILL LYNCH 4%

Total (billion TL) 4,674 Total (billion TL) 2,358

Fixed Income Market Forex Market (Customer)

1 HSBC BANK A.Ş. 12% 1 AK YATIRIM 18%

2 TÜRKİYE GARANTİ BANKASI 10% 2 GCM YATIRIM 11%

3 TÜRK EKONOMİ BANKASI 9% 3 İŞ YATIRIM 10%

4 AKBANK 7% 4 INTEGRAL YATIRIM 10%

5 AK YATIRIM 6% 5 MEKSA YATIRIM 10%

6 TÜRKİYE İŞ BANKASI 5% 6 GEDİK YATIRIM 5%

7 YAPI VE KREDİ BANKASI 5% 7 QNB FİNANS YATIRIM 4%

8 JPMORGAN 4% 8 DENİZ YATIRIM 4%

9 TÜRKİYE VAKIFLAR BANKASI 4% 9 YAPI KREDİ YATIRIM 4%

10 YAPI KREDİ YATIRIM 4% 10 IŞIK MENKUL 4%

Total (trillion TL) 792 Total (billion TL) 3,040

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

53

Source: TCMA 702

1,020

1,216 1,145

579 90

96

97 113

76 72

80

88 75

34 2

4

17 6

3 15

22

23

19

11

2016 2017 2018 2019 2020/06

Other Financing Privatization M&A

IPO&SPO-Equities Corporate Actions Other Consultancy Bond Issuance

1,228

883

1,457

1,362

710

INSTITUTIONAL INVESTMENTS (BILLION TL)

44 59 57

127 164

58 80 93

128

148

0.3

0.4 0.3

0.7

1.0

24

27 18

28

37

1.1

2.6 1.5

3.0

3.8

2016 2017 2018 2019 2020/06

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds Mutual Funds

128

169

354 287

170

ASSET MANAGEMENT BY BROKERAGE FIRMS

55

Source: TCMA

1.3 1.9 2.1 3.8 3.3

2,649 4,085

4,331

4,930 4,787

2016 2017 2018 2019 2020/06

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

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

122 158 173 284 347

3,082

3,344 3,475 3,386

3,797

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

2016 2017 2018 2019 2020/06

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

CONCENTRATION IN PORTFOLIO MANAGEMENT FIRMS (2020 JUNE)

57

Source: TCMA 67%

83% 87% 98%

19%

14% 9%

14% 3% 4% 2%

Mutual Funds Pension Funds Discretionary Asset Man. Investment Trusts

10+ 6-10 1-5

No. of Intermediaries

Number of Asset Management Companies

TOP 5 MEMBERS IN PORTFOLIO MANAGEMENT ACTIVITIES (2020 JUNE)

Mutual Funds Pension Funds

1 İŞ PORTFÖY 21% 1 ZİRAAT PORTFÖY 21%

2 ZİRAAT PORTFÖY 16% 2 AK PORTFÖY 19%

3 AK PORTFÖY 12% 3 İŞ PORTFÖY 17%

4 YAPI KREDİ PORTFÖY 11% 4 YAPI KREDİ PORTFÖY 13%

5 GARANTİ PORTFÖY 6% 5 GARANTİ PORTFÖY 13%

Total (billion TL) 164.2 Total (billion TL) 148.4

Discretionary Asset Management Investment Trusts

1 ZİRAAT PORTFÖY 29% 1 METRO PORTFÖY 43%

2 AK PORTFÖY 21% 2 İŞ PORTFÖY 34%

3 AZİMUT PORTFÖY 16% 3 HEDEF PORTFÖY 10%

4 İŞ PORTFÖY 13% 4 GARANTİ PORTFÖY 6%

5 İSTANBUL PORTFÖY 7% 5 OYAK PORTFÖY 5%

Total (billion TL) 34.5 Total (million TL) 633.6

BROKERAGE FIRMS’ BRANCH NETWORK

59

Source: TCMA

9,261 9,361 9,387 9,332 9,316

310 291 289 277 269

59 40 46 64 73

2016 2017 2018 2019 2020/06

Bank Branches Branches Rep. Offices

9,673 9,692

9,630 9,722

9,658

BROKERAGE FIRMS’ EMPLOYEES

3,735

2,811 2,841 2,852 2,961

2,743

1,940 2,075 2,112 2,101

2016 2017 2018 2019 2020/06

Male Employees Female Employees

4,964 4,916

4,751 6,478

5,062

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

61

Source: TCMA

445 475 498 474 489

275 260 279

264 271

2016 2017 2018 2019 2020/06

Male Employees Female Employees

738 760 735 777

720

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

20.1 21.9

20.4

25.1

31.3

21.2 23.1

21.9

27.2

33.2

4.3 4.7 6.2 7.6 8.8

2016 2017 2018 2019 2020/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

63

Source: TCMA

2,175

2,510

3,557

4,264

3,362

332

774

1,422

1,842 1,945

483

799

1,343

1,728 1,833

2016 2017 2018 2019 2020/06

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

1,511 1,435 1,928 1,986 2,178

106 302

343

900 463

164 240

323

344

180

358 485

904

967

505

2016 2017 2018 2019 2020/06

Brokerage Commissions Proprietary Trading Profits Corporate Finance

Asset Management Others 4,264

3,557

2,510 2,175

3,362

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

65

Source: TCMA 571

698

863

1,034

1,169

609

740

918

1,139

1,246

552

664

809

982

1,067

2016 2017 2018 2019 2020/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

347

439

517

666

501

105

165 188

290 276

111

165

232

336

290

2016 2017 2018 2019 2020/06

Total Revenues Operating Profit Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

67

Source: TCMA

211 282

358

488 400

99

121

99

108

62 4

4

5

4

2

20

24

32

40

20

2016 2017 2018 2019 2020/06

Discretionary Asset Mgmt. Other

Financial Advisory Investment Trust Mgmt.

Pension Fund Mgmt. Mutual Fund Mgmt.

645

499 434

337

487

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

69

Source: BRSA, CRA, TCMA estimates

1,453 1,711 2,036

2,567 3,060

627

734

830

1,145

1,543

247

355

315

476

534

2016 2017 2018 2019 2020/06

Equities

Fixed Income

Deposits

2,327

2,800

3,181

5,137

4,188

SAVINGS OF DOMESTIC INVESTORS

69% 68% 69% 66% 62%

27% 26% 27% 29% 32%

5% 5% 4% 5% 6%

2016 2017 2018 2019 2020/06

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

71

Source: BRSA, CRA, TCMA estimates Total Foreign Investors’ Savings as of June 2020: TL 515 bn

27% 27% 33% 32% 38%

28% 25% 22%

17% 10%

45% 48% 45%

52% 52%

2016 2017 2018 2019 2020/06

Equities

Fixed Income

Deposits

NUMBER OF EQUITY INVESTORS

(thou.) 2016 2017 2018 2019 2020'06

Domestic Investors 1,049.2 1,031.3 1,081.3 1,193.7 1,558.4 1,043.5 1,025.9 1,076.1 1,188.1 1,552.2

5.0 4.7 4.6 4.9 5.4

0.7 0.7 0.7 0.7 0.8

Foreign Investors 9.8 9.5 9.6 9.7 10.9

6.2 6.2 6.2 6.6 8.0

1.5 1.4 1.5 1.4 1.3

2.1 1.9 1.9 1.7 1.6

Total 1,059.0 1,040.8 1,090.9 1,203.4 1,569.3 Dom. Individuals

Dom. Corporations Dom. Institutionals

Number of Equity Investors

Source: CRA

For. Individuals

For. Corporations

For. Institutionals

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

73

Source: CRA, Borsa Istanbul

89 123 111 186 267

157 232 204

290 267

368

525 479

633

699

2016 2017 2018 2019 2020/06

Privately Held

Foreigners' Portfolio Domestics' Portfolio

1,233

614

880

795

1,109

SHARE OF FOREIGN INVESTORS

0%

4%

8%

12%

16%

20%

24%

28%

32%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2016 2017 2018 2019 2020/06

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

MCap

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

75

Source: CRA

Total equity portfolio as of June 2020: TL 534 bn 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020/06

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

EQUITY TRADING VOLUME BY INVESTOR CATEGORIES*

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020/06

For. Institutional

For. Corporation

For. Individual

Dom.Institutional

Dom. Corporation

Dom. Individual

NUMBER OF CORPORATE BOND INVESTORS

77

2016 2017 2018 2019 2020/06

Domestic Investors 96,771 81,865 77,671 65,998 62,083

93,217 78,954 75,361 64,010 60,068

2,886 2,292 1,660 1,344 1,383

668 619 650 644 632

Foreign Investors 705 622 662 453 457

677 594 641 431 435

25 24 18 19 20

3 4 3 3 2

Total 97,476 82,487 78,333 66,451 62,540

Source: CRA

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

Number of Corporate Bond Investors Dom. Individuals

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020/06

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

MUTUAL FUND INVESTORS

79

Source: CRA

45.1 56.4 52.8 122.7 158.8

2.9

3.0

2.9

3.0

3.1

2.5 2.6 2.7 2.8 2.9 3.0 3.1

- 20 40 60 80 100 120 140 160 180

2016 2017 2018 2019 2020/06

Portfolio Size (bn. TL) Number of Investors (mn.)

PENSION FUND INVESTORS

61 78 89 119 138

2

5

8

10

6.9 6.9 6.9 6.8

3.4

5.0 5.4 5.5

6.6

9.4

10.8 11.4

- 2.0 4.0 6.0 8.0 10.0 12.0 14.0

- 20 40 60 80 100 120 140 160 180 200

2016 2017 2018 2019 2020/06

Auto Enrolment - Total Portfolio Size (bn. TL) Private Pension - Portfolio Size (bn. TL)

Private Pension - Number of Investors (mn.) Auto Enrolment - Number of Investors (mn.) Unique Number of Investors (mn.)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES*

81

Source: TCMA

*Brokerage firms only 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

FOREX TRADING VOLUME OF BROKERAGE FIRMS

0%

20%

40%

60%

80%

100%

2016 2017 2018 2019 2020/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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