Turkish Capital Markets

Turkish Capital Markets

October 2018

24

2

Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile CONTENTS

16

43

67

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.

4

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

-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

-Insurance Association of Turkey -Insurance Companies

-Private Pension Companies -Private Pension Funds

CAPITAL MARKET INSTITUTIONS IN TURKEY

6

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

8

• 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)

10

• 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

12

• 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 143,604 (~$ 40,000) in 2018, 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

14

Market Makers

Execution Brokers

Introducing Brokers

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

• minimum capital: TL 26 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

Management Companies

• 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

• Mn. capital required varies btw.

TL 1 million and TL 5 million

depending on AUM.

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 October 2018; 78

brokerage firms, 44 banks, 53 portfolio management

companies, 9 securities investment trusts, 33 real estate

MEMBERS

18

97 95 88 80 78

43 44

43 44 44

40 46 52

50 53

46 47 48

48 49

2014 2015 2016 2017 2018/09

Investment Trusts Asset Management Firms Banks Brokerage Firms

222 224

226 232 231

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

20

• 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

22

• 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

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

• 49% stake

• 2 seats at the board of directors, out of 7 members

TURKISH CAPITAL MARKETS

BIST-100 INDEX & TRADING VOLUME

0

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

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

01-13 04-13 08-13 12-13 04-14 08-14 12-14 04-15 07-15 11-15 03-16 07-16 11-16 03-17 06-17 10-17 02-18 06-18

Trading Volume BIST-100 (TL)

Point ^{Mn. TL}

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

26

Source: Borsa Istanbul

627 555 614 880

801

2014 2015 2016 2017 2018/09

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017

Technology Financials Services Industrials

CONCENTRATION IN THE EQUITY MARKET (MCAP)

28

Source: Borsa Istanbul 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017

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

No. of Equities

10,0395,0906,223 22,081 228

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Nasdaq OMXShanghaiTokyoNYSE London GroupSaudi ArabiaSouth KoreaOMX NordicHong KongPhilippinesSingaporeShenzhenNSE IndiaBSE IndiaIndonesiaOslo BorsDeutscheEuronextAustraliaSantiagoMalaysiaThailandTel AvivMoscowTaiwanMexicoSwissSpainBrazilTMXJSE Borsa IstanbulWarsawWienerIrish

DOMESTIC MARKET CAPITALIZATION (2017, BILLION $)

Rank: 32

1,302%358%257%248%

27%

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

Hong KongSingaporeMalaysiaThailandTaiwanTokyoSwissTMXJSE OMX Nordic South KoreaSantiagoAustraliaNYSE LuxembourgEuronext London GroupNew ZealandSaudi ArabiaNasdaq OMXCasablancaKazakhstanHoChiMinhPhilippinesAbu DhabiNSE IndiaBSE IndiaIndonesiaShenzhenOslo BorsShanghaiDeutscheColombiaMauritiusTel AvivWarsawMoscowBahrainAmmanWienerMuscatMexicoDubaiQatarSpainBrazilMaltaLimaIrish Borsa Istanbul

MARKET CAPITALIZATION/GDP (2017)

30

Source: WFE, IMF

Rank: 50

NUMBER OF SECURITIES IN THE EQUITY MARKET

311 301 289 289 296

65 68 69 63 58

24 22 18 18 18

37 39 38 41 43

2014 2015 2016 2017 2018/09

Real Estate/Venture Capital Investment Trusts/Funds ETF+Inv. Trusts

Other Equities Equities

437 430

414 411 415

3,878 3,604 3,328 3,136 375

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

BSE IndiaTokyoSpainTMX Nasdaq OMX London GroupSouth KoreaOMX NordicHong KongSingaporeShenzhenNSE IndiaIndonesiaShanghaiDeutscheEuronextAustraliaMalaysiaThailandTel AvivTaiwanWienerTaipeiNYSE Borsa IstanbulHoChiMinhColomboTehranBrazilJSE

NUMBER OF LISTED COMPANIES (2017)

32

Source: WFE

Rank: 25

Excluding ETFs and investment trusts

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

873 1,023 1,014

1,468 1,527

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

2014 2015 2016 2017 2018/09

395

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

Nasdaq OMX NYSE BATS US ShenzhenShanghai BATS Chi-x…

Tokyo London Group Euronext Hong Kong South KoreaDeutsche TMX Swiss NSE India Australia OMX Nordic Taiwan Spain Brazil JSE Borsa Istanbul Thailand MoscowTaipei

12,302 33,407 16,140 EQUITY TRADING VOLUME (2017, BILLION $)

34

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^.

Rank: 22

333%253%

227%

Nasdaq OMXShenzhenTaipei Borsa IstanbulLondon GroupNew ZealandSaudi ArabiaSouth KoreaOMX NordicHong KongHoChiMinhNSE IndiaOslo BorsShanghaiDeutscheEuronextAustraliaThailandHungaryWarsawMoscowTokyoEgyptSpainSwissBrazilNYSEIrishTMXJSE

174%

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2017)

Rank: 4

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION TL)

36

Source: Takasbank

6,296

5,565

7,423

12,970

10,187

2014 2015 2016 2017 2018/09

SHORT SELLING IN BORSA ISTANBUL

138 178 170 184 156

16% 17%

17%

13%

10%

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

2014 2015 2016 2017 2018/09

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

MARGIN TRADING

38

Source: TCMA

1,148 1,507 1,465 2,122 2,199

9,914 9,914 9,585

10,670 11,518

2014 2015 2016 2017 2018/06

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

FUTURES TRADING VOLUME OF BORSA ISTANBUL

435 567 580 829 985

59

88

100

139

174 Futures Trading Volume (bn. TL)

No. of Contracts (million)

1,103,634 413,14374,612 225

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

Chicago Mercantile…Deustche BoerseBM&FBOVESPAICE (Europe) ASX SFE DerivativesDalian CE-ChinaTaiwan Futures…Borsa IstanbulZhengzhou CECFFEX- ChinaMalasysia DENasdaq OMXLME-LondonHong KongMCX-IndiaNSE-IndiaBSE IndiaEuronextICE (US)MontrealMoscowOsakaKoreaSpainJSE

64,120

TRADING VOLUME IN FUTURES MARKETS (2017, BILLION $)

40

Source: WFE

Rank: 25

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

436 464 519

662 739

2014 2015 2016 2017 2018/06

6,702 6,469 5,690 662

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

South KoreaBSE India London Group Irish OMX Nordic Euronext NSE India ShanghaiSpain Wiener Oslo BorsJSE Buenos AiresMoscow Taipei Hong Kong Swiss Tel Aviv Borsa Istanbul Colombia Shenzhen WarsawLima Brazil Kazakhstan

7,696 5,321 5,026

NUMBER OF LISTED CORPORATE BONDS (2017)

42

Source: WFE

Rank: 19

INITIAL PUBLIC OFFERINGS

714 119 343 1,254 5,419

13

6

2

3

9

2014 2015 2016 2017 2018/09

IPO Volume (mn. TL) No. of IPOs

EQUITY FINANCING

44

Source: Borsa Istanbul

714 119 343 1,254

5,419 1

2,660

1,966 1,645

3,809

8,279

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

2014 2015 2016 2017 2018/09

Rights Issue IPO

3,556 3,331

2,148

5,063

13,698

CORPORATE DEBT SECURITIES ISSUANCE

66 80 90 130 129

517

621

760

1,217

1,056

2014 2015 2016 2017 2018/09

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

INVESTMENT INSTITUTIONS

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

1,141

942

1,125

1,027

849 117

117

184

196

154

2014 2015 2016 2017 2018/09

Brokerage Firms Banks

1,257

1,059

1,308

1,223

1,003

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

48

Source: Borsa Istanbul Excluding Central Bank and Takasbank.

13,229 14,700

13,546

6,177

4,112 1,397

1,614

1,331

1,177

284

2014 2015 2016 2017 2018/09

Brokerage Firms Banks

14,626

16,315

14,877

7,354

4,948

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

1,746 2,045 2,027

2,773 2,767

163 286

2014 2015 2016 2017 2018/09

Banks

Brokerage Firms 2,936 3,053

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

50

Source: Borsa Istanbul, TurkDex 865

1,131 1,154

1,628

1,914 5

4 6

31

56

2014 2015 2016 2017 2018/09

Banks

Brokerage Firms 988659886598865988659886598865988659886598865988659886598865

869

1,135 1,160

1,658

1,970

FOREX TRADING VOLUME (BILLION TL)

4,353

9,546

12,245

4,667

2,152 3,340

7,459

9,604

3,912

1,769

2014 2015 2016 2017 2018/06

Liquidity Provider Client

7,693

3,921 8,578

21,850

17,005

CONCENTRATION IN TRADING VOLUMES (2018/09)

52

Source: Borsa Istanbul, TCMA

Note: Forex trading volume data as of 2018/06 period

62% 67% 72% 77%

24% 22% 16% 18%

14% 11% 11% 5%

Equity Fixed Income Futures Forex

51+ 21-50 11-20 1-10

No. of Intermediaries

TOP 10 MEMBERS IN THE MARKETS (2018/09)

Equity Market Futures Market

1 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 10% 1 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 15%

2 MERRILL LYNCH YATIRIM BANK A.Ş. 9% 2 IS YATIRIM MENKUL DEGERLER A.S. 13%

3 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 3 TEB YATIRIM MENKUL DEGERLER A.S. 9%

4 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 7% 4 GARANTI YATIRIM MENKUL DEGERLER A.S. 9%

5 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 5 QNB FINANS YATIRIM MENKUL DEGERLER A.S. 7%

6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 5% 6 AK YATIRIM MENKUL DEGERLER A.S. 6%

7 A1 CAPITAL YATIRIM MENKUL DEĞERLER A.Ş. 5% 7 DENIZ YATIRIM MENKUL KIYMETLER A.S. 4%

8 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4% 8 GEDIK YATIRIM MENKUL DEGERLER A.S. 3%

9 TEB YATIRIM MENKUL DEĞERLER A.Ş. 4% 9 A1 CAPITAL MENKUL DEGERLER A.S. 3%

10 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4% 10 TACIRLER YATIRIM MENKUL DEGERLER A.S. 3%

Total (bn. TL) 3,053 Total (bn. TL) 1,970

Fixed Income Market Forex Market

1 AKBANK A.S. 16% 1 AK YATIRIM MENKUL DEĞERLER A.Ş. 17%

2 T. GARANTI BANKASI A.S. 12% 2 GCM MENKUL KIYMETLER A.Ş. 14%

3 HSBC BANK A.S. 7% 3 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 12%

4 T. ISBANKASI A.S. 6% 4 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 8%

5 TURK EKONOMI BANKASI A.S. 6% 5 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 7%

6 YAPI KREDI BANKASI A.S. 5% 6 IŞIK MENKUL DEĞERLER A.Ş. 7%

7 JP MORGAN CHASEBANK NAT.ASS.MRK.COL.O.IST.TU 4% 7 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 5%

8 DEUTSCHE BANK A.S. 4% 8 İNTEGRAL YATIRIM MENKUL DEĞERLER A.Ş. 4%

9 AK YATIRIM MENKUL DEGERLER A.S. 4% 9 QNB FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 3%

10 CITIBANK A.S. 4% 10 ŞEKER YATIRIM MENKUL DEĞERLER A.Ş. 3%

Total (bn. TL) 1,003 Total (bn. TL) 3,921

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

54

Source: TCMA

465 608 702

1,020

658 63

34

90

96

54 83

87

72

80

50 14

6

2

4

14 11

15

22

11

2014 2015 2016 2017 2018/06

Other Financing Privatization M&A

IPO&SPO-Equities Corporate Actions Other Consultancy Bond Issuance

883 746

644

1,228

793

INSTITUTIONAL INVESTMENTS (BILLION TL)

33 37 44 59 64

38 48 58

80 84

0.3

0.3

0.3

0.4 0.3

22

21

24

27 23

1.5

1.3

1.1

2.6 1.6

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds Mutual Funds

169

94

108

128

173

ASSET MANAGEMENT BY BROKERAGE FIRMS

56

Source: TCMA

5,375 1,267 1,341 1,904 2,683

2,923

2,649

3,696

4,102

3,907

2014 2015 2016 2017 2018/06

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

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

81,848 100,995 121,666 158,127 167,785

2,277

2,688

3,082

3,344

3,658

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

2014 2015 2016 2017 2018/06

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

BROKERAGE FIRMS’ BRANCH NETWORK

58

Source: TCMA

7,071 5,763 8,297 8,392 8,402

150

323

310 291 291

71

67

76 59 41

2014 2015 2016 2017 2018/06

Bank Branches Branches Rep. Offices

8,736 8,666

6,162 7,288

8,723

BROKERAGE FIRMS’ EMPLOYEES

5,657

6,632 6,478

4,751 4,818

2014 2015 2016 2017 2018/06

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

60

Source: TCMA

698 720 735 767

2015 2016 2017 2018/06

BANKS’ EMPLOYEES

216,912 217,504 210,886 208,280 208,878

2014 2015 2016 2017 2018/06

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

62

Source: TCMA

14.1 14.2

20.1

21.9 23.0

15.1 15.3

21.2

23.1 24.3

3.7 4.0 4.3 4.7 5.1

2014 2015 2016 2017 2018/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

1,587

2,001

2,175

2,510

1,604

281 301 332

774 694

372 433 483

799 695

2014 2015 2016 2017 2018/06

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

64

Source: TCMA

1,017 1,332 1,511 1,435

856 78

89

106 302

157 136

170

164 240

205 308

360 358

485

356

2014 2015 2016 2017 2018/06

Brokerage Commissions Proprietary Trading Profits Corporate Finance Asset Management Others

1,587

2,001

1,604 2,510

2,175

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

472

571

698 681

507

609

740 743

456

552

664 671

2015 2016 2017 2018/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

66

Source: TCMA 296

347

439

249

88 105

165

91 111 91

165

106

2015 2016 2017 2018/06

Total Revenues Operating Profit Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

177 211

282

182 91

99

121

49 4

4

4

2 22

20

24

13

0 50 100 150 200 250 300 350 400 450

500 Discretionary Asset Mgmt. Fund Sales

Financial Advisory Investment Trust Mgmt.

Pension Fund Mgmt. Mutual Fund Mgmt.

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

1,053 1,245 1,453 1,711 1,899

555

574

627

734

754

249

226

247

355

315

2014 2015 2016 2017 2018/06

Equities

Fixed Income

Deposits 2,045

2,327

2,800

1,856

2,968

SAVINGS OF DOMESTIC INVESTORS

70

Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of 2018/06: TL 2.5 trillion

66% 67% 69% 68% 70%

28% 28% 27% 26% 26%

6% 5% 5% 5% 5%

2014 2015 2016 2017 2018/06

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

18% 26% 27% 27% 34%

36% 30% 28% 25%

23%

46% 44% 45% 48% 42%

2014 2015 2016 2017 2018/06

Equities

Fixed Income

Deposits

NUMBER OF EQUITY INVESTORS

72

(thou.) 2014 2015 2016 2017 2018/09

Domestic Investors 1,065.5 1,049.2 1,031.3 1,081.3 1,163.8 1,059.6 1,043.5 1,025.9 1,076.1 1,157.9

5.2 5.0 4.7 4.6 5.2

0.7 0.7 0.7 0.7 0.8

Foreign Investors 9.9 9.8 9.5 9.6 9.6

6.2 6.2 6.2 6.2 6.4

1.4 1.5 1.4 1.5 1.4

2.3 2.1 1.9 1.9 1.7

Total 1,075.4 1,059.0 1,040.8 1,090.9 1,173.4 Dom. Individuals

Dom. Corporations Dom. Institutionals

Number of Equity Investors

Source: CRA

For. Individuals

For. Corporations

For. Institutionals

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

90 85 89 123 121

159 141 157

232 199

378 329 368

525

481

2014 2015 2016 2017 2018/09

Privately Held Foreigners' Portfolio Domestics' Portfolio

627 555 614

880

801

SHARE OF FOREIGN INVESTORS

74

Source: CRA, Borsa Istanbul

0%

4%

8%

12%

16%

20%

24%

28%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2014 2015 2016 2017 2018/09

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

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/09

For. Other

For. Corporation For. Individual Dom. Other

Dom. Corporation Dom. Individual

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES *

76

Source: TCMA

*Brokerage firms only 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

NUMBER OF CORPORATE BOND INVESTORS

2014 2015 2016 2017 2018/09

Domestic Investors 136,441 135,690 96,771 81,865 80,824

132,132 131,798 93,217 78,954 78,628

3,601 3,197 2,886 2,292 1,555

708 695 668 619 641

Foreign Investors 1,384 1,066 705 622 678

1,330 1,034 677 594 655

36 24 25 24 20

18 8 3 4 3

Total 137,825 136,756 97,476 82,487 81,502

Dom. Corporations

Source: CRA

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

Number of Corporate Bond Investors Dom. Individuals

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

78

Source: CRA Total corporate bond portfolio as of 2018/09: TL 75,8 bn

.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/09

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

MUTUAL FUND INVESTORS

36.2 38.9 45.1 56.4 54.1

2.8

2.9 2.9

3.0

2.9

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

2014 2015 2016 2017 2018/09

Portfolio Size (bn. TL)

Number of Investors (mn.)

PENSION FUND INVESTORS

80

Source: PMC

PP: Private pension schemes AE: Auto-enrolment Portfolio size includes government contributions

.

37.6 48.0

60.8

77.8 86.9

3.5

7.4

5.1

6.0 6.6

10.3

PP 6.9 AE 4.9

- 2.0 4.0 6.0 8.0 10.0 12.0 14.0

- 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

2014 2015 2016 2017 2018/09

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

Number of Investors (mn.)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES*

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

FOREX TRADING VOLUME OF BROKERAGE FIRMS

82

Source: TCMA 0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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