Brief Description of Yapı Kredi

• Turkey's first privately-owned commercial bank with a nationwide presence and fourth largest private bank in terms of assets (TL 82.3 bln as of 1H10).
• Significant retail franchise with 6 million active customers
• Offers retail, private, corporate, commercial, SME and investment banking services through a network of 847 branches (including one off-shore branch in Bahrain)
• Subsidiaries in leasing, factoring, asset management, brokerage, private pension and life & non-life insurance.
• International banking operations located in the Netherlands, Russia, and Azerbaijan.
• Yapı Kredi's principal shareholder, Koç Financial Services (KFS), the 50-50% joint venture between UniCredit and Koç Group, controls a 81.8% stake in the Bank while minorities' stake is 18.2%. The Bank's shares are traded on the Istanbul Stock Exchange and on the London Stock Exchange.

Key Competitive Advantages

• Large network and leading brand
• Yapı Kredi has the fourth largest branch network in Turkey with 847 branches (9.3% market share) as well as one of the most extensive alternative delivery channel networks with 2,356 ATMs and award winning internet and telephone banking applications.
• Leadership in key segments/products
• Credit cards (#1 with 20.1% outstanding volume market share), asset management (#2 with 18% market share), factoring (#1 with 23.5% market share), leasing (#1 with 20.5% market share), private pension funds (#3 with 15.6% market share), life and non-life insurance (4.7% and 6.2% market shares, respectively) and brokerage services (#3 with 5,8% market share)
• Segment-focused organisation
• Completed divisionalisation implementation during 1H07
  Undertook reorganisation of the internal structure in February 2009 aimed at improving customer service quality as well as increasing efficiency through enhancement of synergies between business units (retail banking including credit cards, individual and SME banking, corporate and commercial banking and private banking) and product factories (asset management, brokerage, leasing, factoring and international banking operations).
• Solid Risk Profile
• Solid credit risk infrastructure, underwriting and monitoring tools
• No speculative FX open positions
• 77% of securities portfolio in Held-to-Maturity
• Quality revenue generation
• Sustainable revenue sources with growth potential Focus on profitable and high growth segments

• Launched aggressive transaction migration project in July 2007 with aim of reducing operational workload on branches allowing them to concentrate on sales. Introduced the first barcode-based bill payment system through ATMs in Turkey. As a result, usage of ADCs in total banking transactions increased to 77% in 1H10 from 69% in 2008.
• Increased focus on customer satisfaction & retention with use of internationally recognized methodologies. Further improvement in 2009 with customer satisfaction integrated into employee incentive schemes.

• Ownership structure providing stability and growth potential.
• Possibility to leverage on Koç Group and UniCredit synergies
• ATM sharing with UniCredit: Effective as of 1 October 2007, YKB debit card customers are able to utilize UniCredit ATMs free of charge to withdraw money at more than 15,000 points across 22 European countries. At the same time, UniCredit customers are able to use YKB ATMs in the same way

*Including 1,5 million virtual card