Turkish Capital Markets

(1)

Turkish Capital Markets

January 2021

(2)

23 Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile CONTENTS

15

47

3

70

(3)

STRUCTURE OF THE

TURKISH CAPITAL MARKETS

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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 - BISTECH.

2016: TCMA arbitration committees established.

Turkey Wealth Fund established

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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

(6)

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

(7)

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.

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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.

(9)

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.

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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

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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 237,643 (~$ 32,000) in 2021, in case of liquidation or bankruptcy of investment institutions.

• All investment institutions must be a member of the Investor

Compensation Centre.

(12)

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

(13)

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 29.2 mn.

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

account

• offering custody services

• minimum capital: TL 11.7 mn.

• reception of orders and

transfer them to other brokers

• minimum capital: TL 2.3 mn.

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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 3.1 million and TL 15.8 million depending on AUM.

• May establish only real estate or venture capital investment funds

• Mn. capital required varies

btw. TL 1.5 million and TL

7.9 million depending on

AUM.

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TURKISH CAPITAL MARKETS ASSOCIATION

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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

(17)

MEMBERS

17

80 78 74 71 71

44 44 44 45 45

50 56 54 50 50

48 49

49 49 49

2017 2018 2019 2020 2021/01

Investment Trusts Asset Management Firms Banks Brokerage Firms

227 221

222 215 215

(18)

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.

(19)

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.

(20)

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

(21)

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.

(22)

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

(23)

TURKISH CAPITAL MARKETS

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BIST-100 INDEX & TRADING VOLUME

0 10 20 30 40 50 60 70

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

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 07-20 09-20 10-20 11-20

Trading Volume BIST-100

^{bn. TL}

(25)

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

25

Source: Borsa Istanbul

614 880 795 1,109

1,783

2016 2017 2018 2019 2020

(26)

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

Technology Financials Services Industrials

(27)

CONCENTRATION IN THE EQUITY MARKET (MCAP)

27

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

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

No. of Equities

(28)

DOMESTIC MARKET CAPITALIZATION (2020, BILLION $)

Rank: 30

(29)

MARKET CAPITALIZATION/GDP (2020)

29

Source: WFE, IMF, Turkstat

Rank: 43

*As of November 2020

(30)

336 336 343 344

273

69 66 62 64

129

13 9 9 4 13

2016 2017 2018 2019 2020

Real Estate/Venture Capital Investment Trusts/Funds ETF

Other Equities Equities

418 411 414 412 415

NUMBER OF SECURITIES IN THE EQUITY MARKET

Equities: BIST Main+BIST Star Other Equities: SubMarket, Watchlist,

(31)

NUMBER OF LISTED COMPANIES (2020)**

31

Source: WFE

Rank: 27

**Borsa Istanbul data excludes mutual funds, investment trusts and Pre-Market Trading Platform

(32)

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

1,014 1,468 1,993 2,130

6,544

2016 2017 2018 2019 2020

(33)

EQUITY TRADING VOLUME (2020, BILLION $)

33

Source: WFE

Rank: 19

* As of November 2020

(34)

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (BILLION TL)

7.4

13.0 14.2

22.0 21.1

2016 2017 2018 2019 2020

(35)

SHORT SELLING IN BORSA ISTANBUL

35

170 184 185 135 312

17%

13%

9%

6%

2%

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 96 100 104 108 112 116 120 124 128 132 136 140 144 148 152 156 160 164 168 172 176 180 184 188 192 196 200 204 208 212 216 220 224 228 232 236 240 244 248 252 256 260 264 268 272 276 280 284 288 292 296 300 304 308 312 316 320 324 328

2016 2017 2018 2019 2020

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

(36)

MARGIN TRADING

1.5 2.1 1.8 2.8 5.8

9,390

10,670

12,101 11,895

21,481

2016 2017 2018 2019 2020/09

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

(37)

FUTURES TRADING VOLUME OF BORSA ISTANBUL

37

580 829 1,249 1,401 2,852

100 139 232

389

1,518

2016 2017 2018 2019 2020

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

(38)

TRADING VOLUME IN FUTURES MARKETS (2020, BILLION $)

Rank: 25

(39)

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

39

Source: WFE

519

662 611

511

578

2016 2017 2018 2019 2020

(40)

NUMBER OF LISTED CORPORATE BONDS (2020)

Rank: 16

(41)

BOND TRADING VOLUME

41

634 581 594 635 601

26

38 71

71 114

32

22

32

46 77

2016 2017 2018 2019 2020

Eurobond Corporate Bonds Government Bonds

752

792

556

642

698

(42)

REPO-REVERSE REPO AND TAKASBANK MONEY MARKET TRADING VOLUME

7,064

4,733 4,706

16,471

22,412

428

609 856

557

671

2016 2017 2018 2019 2020

Takasbank Money Market BIST Repo-Reverse Repo

5,562

17,028

7,492

5,342

23,083

(43)

INITIAL PUBLIC OFFERINGS

43

343 1,254 5,419 263 1,124

2

3

9

6

8

2016 2017 2018 2019 2020

IPO Volume (mn. TL) No. of IPOs

(44)

EQUITY FINANCING

0.3 1.3

5.4

0.3 1.1

1.6

3.8

9.6

6.1

20.4

2016 2017 2018 2019 2020

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

2.0

5.1

15.0

6.3

21.5

(45)

CORPORATE DEBT SECURITIES ISSUANCE

45

Source: Borsa Istanbul Excluding private placement

90 130 179 210 199

760

1,217

1,385

1,330 1,255

2016 2017 2018 2019 2020

Issuance (bn. TL)

No. of Corporate Bonds Issued

(46)

INVESTMENT INSTITUTIONS

(47)

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

47

1,125

1,027 1,095 1,146 1,103

184

196 193 194 275

2016 2017 2018 2019 2020

Brokerage Firms Banks

1,378 1,341

1,289 1,223

1,308

(48)

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

13,546

6,177 5,512

21,688

27,856 1,331

1,177 1,138

5,659

6,742

2016 2017 2018 2019 2020

Brokerage Firms

14,877

7,354

6,650

27,346

34,598

(49)

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

49

2,027 2,773 3,626 3,906

12,394

163

361 354

794

2016 2017 2018 2019 2020

Banks Brokerage Firms

3,987 4,260

2,936 2,027

13,189

(50)

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

1,154 1,628

2,424 2,684

5,486

4

6

31 74

119

2016 2017 2018 2019 2020

Banks Brokerage Firms

1,160

1,658

2,499

2,803

5,703

(51)

FOREX TRADING VOLUME (BILLION TL)

51

Source: TCMA

9,546

12,245

4,667 4,494 4,121

9,604 3,912

5,211

3,611 5,070

2016 2017 2018 2019 2020/11

Liquidity Provider Client

7,732 9,705

8,578 21,850

11,530

(52)

CONCENTRATION IN TRADING VOLUMES (2020)

62% 62% 66%

81%

25% 25% 22%

13% 13% 12% 17%2%

Equity Fixed Income Futures Forex (Customer)

51+ 21-50 11-20 1-10

No. of Intermediaries

(53)

TOP 10 MEMBERS IN THE MARKETS (2020)

53

Source: Borsa Istanbul, TCMA Fixed Income excluding Central Bank and Takasbank

Equity Market Futures Market

1 YAPI KREDİ YATIRIM 14% 1 YAPI KREDİ YATIRIM 18%

2 İŞ YATIRIM 10% 2 İŞ YATIRIM 9%

3 MERRILL LYNCH YATIRIM BANK 6% 3 QNB FİNANS YATIRIM 7%

4 GARANTİ YATIRIM 6% 4 GARANTİ YATIRIM 5%

5 AK YATIRIM 6% 5 İNFO YATIRIM 5%

6 QNB FİNANS YATIRIM 5% 6 TACİRLER MENKUL 5%

7 GEDİK YATIRIM 5% 7 DENİZ YATIRIM 5%

8 İNFO YATIRIM 4% 8 AK YATIRIM 4%

9 VAKIF YATIRIM 4% 9 TEB YATIRIM 4%

10 A1 CAPITAL YATIRIM 4% 10 GEDİK YATIRIM 4%

Total (billion TL) 13,189 Total (billion TL) 5,703

Fixed Income Market Forex Market* (Customer)

1 HSBC BANK 11% 1 AK YATIRIM 15%

2 TÜRKİYE GARANTİ BANKASI 9% 2 İŞ YATIRIM 13%

3 TÜRK EKONOMİ BANKASI 8% 3 GCM 13%

4 AKBANK 6% 4 MEKSA YATIRIM 13%

5 AK YATIRIM 6% 5 İNTEGRAL YATIRIM 8%

6 TÜRKİYE İŞ BANKASI 5% 6 İNFO YATIRIM 5%

7 AKTİF YATIRIM BANKASI 5% 7 GEDİK YATIRIM 4%

8 JPMORGAN CHASE BANK 4% 8 IŞIK 3%

9 YAPI VE KREDİ BANKASI 4% 9 DENİZ YATIRIM 3%

10 TÜRKİYE VAKIFLAR BANKASI 4% 10 ALB 3%

Total (trillion TL) 1,378 Total (billion TL) 6,460

(54)

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

702

1,020

1,216 1,145

857 90

96

97 113

72 85

80

88 75

2 41

4

17 6

3 15

22

23

19

12

2016 2017 2018 2019 2020/09

Other Financing Privatization M&A

IPO&SPO-Equities Corporate Actions Other Consultancy Bond Issuance

1,228

883

1,457

1,362

1,006

(55)

INSTITUTIONAL INVESTMENTS (BILLION TL)

55

Source: Borsa Istanbul, TCMA

44 59 57

127 150

58 80 93

128

166

0.3

0.4 0.3

0.7

1.4

24

27 18

28

50

1.1

2.6 1.5

3.0

5.3

2016 2017 2018 2019 2020/11

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds Mutual Funds

128

169

372

287

170

(56)

ASSET MANAGEMENT BY BROKERAGE FIRMS

1.3 1.9 2.1 3.8 3.5

2,649 4,085

4,331

4,930 5,079

2016 2017 2018 2019 2020/09

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

(57)

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

57

Source: CMB, TCMA

122 158 173 284 356

3,082 3,344 3,475 3,386

4,097

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

2016 2017 2018 2019 2020/11

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

(58)

CONCENTRATION IN PORTFOLIO MANAGEMENT FIRMS (2020 NOVEMBER)

66%

83% 86%

98%

19%

14% 9%

2%

15% 3% 5%

Mutual Funds Pension Funds Discretionary Asset Man. Investment Trusts

10+ 6-10 1-5

No. of Intermediaries

Number of Asset Management Companies

(59)

59

Source: TCMA

TOP 5 MEMBERS IN PORTFOLIO MANAGEMENT ACTIVITIES (2020 NOVEMBER)

Mutual Funds Pension Funds

1 İŞ PORTFÖY 17% 1 ZİRAAT PORTFÖY 21%

2 YAPI KREDİ 14% 2 AK PORTFÖY 19%

3 ZİRAAT PORTFÖY 14% 3 İŞ PORTFÖY 17%

4 AK PORTFÖY 13% 4 YAPI KREDİ PORTFÖY 13%

5 AZİMUT PORTFÖY 9% 5 GARANTİ PORTFÖY 13%

Total (billion TL) 149.8 Total (billion TL) 166.0

Discretionary Asset Management Investment Trusts

1 ZİRAAT PORTFÖY 24% 1 METRO PORTFÖY 41%

2 AK PORTFÖY 20% 2 İŞ PORTFÖY 35%

3 AZİMUT PORTFÖY 19% 3 HEDEF PORTFÖY 12%

4 İŞ PORTFÖY 15% 4 GARANTİ PORTFÖY 6%

5 İSTANBUL PORTFÖY 8% 5 OYAK PORTFÖY 5%

Total (billion TL) 39.9 Total (billion TL) 0.701

(60)

BROKERAGE FIRMS’ BRANCH NETWORK

9,261 9,361 9,387 9,332 9,318

310 291 289 277 272

59 40 46 64 84

2016 2017 2018 2019 2020/09

Bank Branches Branches Rep. Offices

9,673 9,692

9,630 9,722

9,674

(61)

BROKERAGE FIRMS’ EMPLOYEES

61

Source: TCMA

3,735

2,811 2,841 2,852 3,069

2,743

1,940 2,075 ^2,112 ^2,162

2016 2017 2018 2019 2020/09

Male Employees Female Employees

4,964 4,916

4,751 6,478

5,231

(62)

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

445 475 498 474 494

275 260 279

264 268

2016 2017 2018 2019 2020/09

Male Employees Female Employees

738 762 777

720 735

(63)

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

63

Source: TCMA

20.1 21.9

20.4

25.1

32.2

21.2 23.1

21.9

27.2

34.5

4.3 4.7 6.2 7.6

10.1

2016 2017 2018 2019 2020/09

Current Assets Total Assets Shareholders' Equity

(64)

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

2,175

2,510

3,557

4,264

5,654

332

774

1,422

1,842

3,440

483 799

1,343 1,728

3,027

2016 2017 2018 2019 2020/09

Total Revenues Operating Profit Net Profit

(65)

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

65

Source: TCMA

1,511 1,435 1,928 1,986

3,582

106 302

343

900

918

164 240

323

344

239

358 485

904

967

863

2016 2017 2018 2019 2020/09

Brokerage Commissions Proprietary Trading Profits Corporate Finance Asset Management Others

4,264 3,557

2,510 2,175

5,654

(66)

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

571

698

863

1,034

1,352

609

740

918

1,139

1,431

552

664

809

982

1,224

2016 2017 2018 2019 2020/09

Current Assets Total Assets Shareholders' Equity

(67)

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

67

Source: TCMA

347

439

517

666

790

105

165 188

290

449

111

165

232

336

470

2016 2017 2018 2019 2020/09

Total Revenues Operating Profit Net Profit

(68)

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

211 282 358 488

99 633

121

99

108

99

4

5

4

3

20

24

32

40

30

2016 2017 2018 2019 2020/09

Discretionary Asset Mgmt. Other

Financial Advisory Investment Trust Mgmt.

Pension Fund Mgmt. Mutual Fund Mgmt.

666

517 439

347

790

(69)

INVESTOR PROFILE

(70)

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

(71)

69% 68% 69% 66% 62%

27% 26% 27% 29%

31%

5% 5% 4% 5% 6%

2016 2017 2018 2019 2020

Equities

Fixed Income

Deposits

SAVINGS OF DOMESTIC INVESTORS

71

Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of November 2020: TL 5,2 trillion

(72)

SAVINGS OF FOREIGN INVESTORS

27% 27% 33% 32% 35%

28% 25%

22% 17% 8%

45% 48% 45%

52% 56%

2016 2017 2018 2019 2020

Equities

Fixed Income

Deposits

(73)

NUMBER OF EQUITY INVESTORS

73

(thou.) 2016 2017 2018 2019 2020

Domestic Investors 1,049.2 1,031.3 1,081.3 1,193.7 1,977.0 1,043.5 1,025.9 1,076.1 1,188.1 1,970.4

5.0 4.7 4.6 4.9 5.7

0.7 0.7 0.7 0.7 0.8

Foreign Investors 9.8 9.5 9.6 9.7 12.0

6.2 6.2 6.2 6.6 9.2

1.5 1.4 1.5 1.4 1.3

2.1 1.9 1.9 1.7 1.5

Total 1,059.0 1,040.8 1,090.9 1,203.4 1,988.9 For. Institutionals

Dom. Individuals Dom. Corporations Dom. Institutionals

Number of Equity Investors

Source: CRA

For. Individuals

For. Corporations

(74)

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

89 123 111 186 381

157 232 204

290

362 368

525 479

633

1031

2016 2017 2018 2019 2020

Privately Held

Foreigners' Portfolio Domestics' Portfolio

1,774

614

880 795

1,109

(75)

SHARE OF FOREIGN INVESTORS

75

Source: CRA, Borsa Istanbul

(76)

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

(77)

EQUITY TRADING VOLUME BY INVESTOR CATEGORIES*

77

Source: TCMA *Brokerage firms and investment banks only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020/09

For. Institutional

For. Corporation

For. Individual

Dom.

Institutional

Dom. Corporation

Dom. Individual

(78)

NUMBER OF CORPORATE BOND INVESTORS

2016 2017 2018 2019 2020

Domestic Investors 96,771 81,865 77,671 65,998 55,378

93,217 78,954 75,361 64,010 53,450

2,886 2,292 1,660 1,344 1,284

668 619 650 644 644

Foreign Investors 705 622 662 453 475

677 594 641 431 450

25 24 18 19 20

3 4 3 3 5

Total 97,476 82,487 78,333 66,451 55,853

Source: CRA

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

Number of Corporate Bond Investors

Dom. Individuals

(79)

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

79

Source: CRA Total corporate bond portfolio as of December 2020: TL 372 bn

.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

(80)

MUTUAL FUND INVESTORS

45.1 56.4 52.8 122.7 143.8

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 Portfolio Size (bn. TL)

Number of Investors (mn.)

(81)

PENSION FUND INVESTORS

81

Source: PMC Portfolio size includes government contributions

61 78 89 119 137

2

5

8

11

6.9 6.9 6.9 6.9

3.4

5.0 5.4 5.7

6.6

9.4

10.8 11.4

11.8

- 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

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.)

(82)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES*

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020/09

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

(83)

BREAKDOWN OF FOREX TRADING VOLUME BY INVESTOR CATEGORIES

83

Source: TCMA 0%

20%

40%

60%

80%

100%

2016 2017 2018 2019 2020/09

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

(84)