3Q17 Investor Presentation Albaraka Türk Participation Bank

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1 3Q17 Investor Presentation Albaraka Türk Participation Bank 03 November 2017

2 Agenda 1 Introduction 2 Financial Highlights 3 4 Market Comparison Appendix

3 Turkey Macroeconomic Developments

4 F 2018F 2019F 2020F F 4 Turkey still serves many advantages for investors Following failed coup attempt on July 2016, Turkish economy has been gaining momentum thanks to strong expansionary fiscal measures and macroprudential easing incentives as well as strong fundamentals. GDP growth rate estimates have been continuously revised upwards. 1,9 1,7 1,5 1,3 1,1 Turkey s share within the world GDP (PPP, %) 1, Despite a challenging global and geopolitical issues, Turkey s strong macrofundemantals still serve great advantages for its investors compared to its peer countries thanks to young population, wellcapitalized banking sector and existing cheap valuations. The Government has focused an stimulating domestic demand while trying to pick contribution of net external demand to GDP growth rate up via implementing crucial structural reforms. As a result, Turkey s total debt to GDP ratio is likely to increase moderately due to widening in budget deficit, although it still remains significantly below than the peers. Japan Germany Switzerland Greece Netherlands Europe UK Poland Russia USA China Brazil Turkey 110% 80% 50% 20% Median Age Government Debt Stock/GDP 105% 48% 28% Advanced economies Turkey Emerging economies Source: IMF, UN, TURKSTAT, Albaraka Turk Research&Strategy

5 Robust Growth and Attractive Valuations Turkish economy continues to record one of the strongest growth among G20 countries, with 5.0% (YoY) growth in the first half thanks to strong domestic demand, acceleration in public spending and double-digit increase in exports. Moreover, early indicators for the rest of the year are pointing further acceleration in the economy and to potentially converge 6% throughout As a result of the Transition Program to Sustainable Growth, which was implemented starting from the end of 2010, Turkey s exports share within the world reached its record level in Under current circumstances, main challenge for Turkish economy is pulling inflation to low-single digit levels again. Year-on-year inflation was 11.2% in September and market expects a volatile path around 10% during the rest of the year, due to high food prices and a weakening Lira Looking ahead, considering sustainable current account deficit path, significantly undervalued TL and prevailing emerging market friendly environment, TL denominated assets are expected to diverge positively from its peers. Source: TURKSTAT, WTO, BIS, Albaraka Turk Research&Strategy 5,2% 5,1% 4,8% 4,9% YoY GDP Growth Rates ,8% Q1 Q2 Q3 Q4 0,80% Turkey s Exports Share Within The World 4,2% 0,97% REER (Deviation from 15 Year Av. as of Sept. 17) China 18% Saudi Arabia Overvalued 13% UAE 10% India 8% USA 3% Brazil 3% Indonesia -11% -11% -5% 2% Euro area Malaysia South Africa UK Colombia -15% -13% -12% Turkey Mexico Japan -18% -16% Undervalued -20% -10% 0% 10% 20%

6 6 Turkey Macroeconomic Developments GDP Growth GDP Growth GDP growth was 5.1% y-o-y in 2Q2017 and this is mainly due to a pick up in domestic demand. Investment expenditures made the highest contribution to growth with 2.9 points in the second quarter. Increases in export growth and construction investment also impacted economic growth positively. Moving forward, MTP target for 2017 yearend GDP growth is 5.5% y-o-y due to the strong expectation for the receding of uncertainty, resiliency in public consumption and further strengthening in economic activity driven by a recovery in tourism. First quarter growth, which was previously announced as 5%, was revised up to 5.2%. Hence, growth rate of the first half of the year stood at 5.1% yoy growth was also revised up to 3.2% from 2.9%. Inflation Annual inflation Increased from 9.79% to 11,20% from July to September. The deterioration in core inflation indicators continued in September. Among the main expenditure groups, only food prices, which have the highest weight in CPI basket, declined on a monthly basis in September. As was the case in both June and July, clothing and food prices became the main expenditure groups that pulled the inflation down in August. Inflation is expected to stay in the high single digits with the Central Bank expecting a year-end inflation of 9.5%. 5,2% 7,2% 5,1% 4,8% 4,9% 3,6% 5,8% -0,8% Inflation 11,87% 10,53% 11,29% 11,72% 10,90% 9,58% 9,79% 10,68%11,20% 8,53% 7,46% 7,64% 8,05% 9,22% 7,28% 7,16% 8,78% 6,57% 6,58% 8,79% 7,00% Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec ,5% Q1 Q2 Q3 Q4 4,2% Turkish Lira The Turkish lira depreciated 1.0% versus the USD in the third quarter and 4,3 % depreciated against the EURO; Lira appreciation continued after first quarter mainly due to further tightining monetary stance of the central bank, domestic political developments after referandum in April and also USD depreciation. The euro, on the other hand, found support for the declining uncertainties about the future of the EU. USD/TRY has been lingering near 3.54 level and EURO/TRY is also at 4.20 level at the end of September. FX Rates USD/TRY EUR/TRY Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 4,4 3,9 3,4 2,9 2,4 Source: CBRT, Turkstat

7 7 Turkey Macroeconomic Developments Central Bank Monetary Policy The Central Bank maintains its tight monetary policy stance and continues to keep its main policy rate window, the weekly repo shut. The O/N lending window and the O/N borrowing have remained as is since 1Q2017. The Late liquidity window rate was last increased from 11.75% to 12.25% (+50bps) in April. The rate hike decision of the CB is linked to the deteriorating Lira movement in addition to the worsening core inflation outlook. Rates (%) Q3 16 Q4 16 Q2 17 Q3 17 Overnight borrowing rate One-week repo (policy) rate Overnight lending rate 8, Late liquidity window rate 9, Foreign Trade and Current Account Balance In September, exports increased by 8,7% and imports increased by 30,6% compared to the same month of the previous year, which resulted in the foreign trade deficit expanding by 27.9% y-o-y to USD 53.8 bio in 3Q17. Exports of motor vehicles and boilers and machineries were the main drivers of the growth in exports in September. Other than the strong pace of gold imports, energy imports pulled the foreign trade deficit up. Current account deficit came in below market expectations with 1.2 billion USD in August. The deficit was 1.4 billion USD in the same month of last year. While the expansion in foreign trade deficit pushed the deficit up, the recovery in tourism revenues played an important role in positive performance of the current account balance. The recovery in tourism revenues continued in August. In this period, tourism revenues picked up by 29.2% yoy to 3.4 billion USD, the highest figures in the last two years Budget Balance In June, budget expenditures increased by 2,6% compared to the same month of the previous year. while budget revenues climbed by 32.9% yoy. On the other hand, budget revenues decreased by 0.3% yoy due to the base effect stemming from the high level of privatization revenues in June last year. Thus, central government budget deficit which was 7.9 billion TRY in June 2016 became 13.7 billion TRY in the same month of this year. In the first half of the year, budget expenditures expanded by 18.5% compared to the last year. In this period, the increase in budget revenues was recorded as 8.8%. Hence, the budget, which posted 1.1 billion TRY surplus in the first six months of the year, gave a deficit of 25.2 billion TRY in the same period of 2017 Source: CBRT, Turkstat, Ministry of Finance Balances (billion USD) Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17-8 Aug. -11,2-5,4-7,8-8,1-6,38-12,1-12,9-12,5-14,0-13,9-15,9-18,4-23,0 Foreign Trade Balance Current Account Balance Budget Balance (billion TRY) Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 0,0 1,1-12,0-14,9-25,2-29,3-31,6

8 Turkey Banking Sector vs Participation Banking Sector

9 9 Banking Sector vs Participation Banking Sector Banking Sector highlights In 3Q 2017 the total assets of the banking sector rose 11,83% compared to end of Year to Date, loan growth rate reached 14,8% while NPL amount increased by 8,0%. Loan growth is stronger than in previous years owing to expansionary fiscal policies in place and macroprudential policies supportive of the financial system (ex: Credit Guarantee Fund). Net Profit rose 28,04% compared to 3Q 2017 Participation Banking highlights The sector continued to grow in asset and profitability terms during Q Participation banking rose 11,67% Ytd. With regards to asset growth Capital Adequacy figures increased from 16.17% to 17,25% in the 9 Months ended 2017 Strong net profit increase, 31,1 % yoy Number of total branches increased to 1001 at the end of 2017 Q3 Key Financial Indicators (mn TRL) 3Q 16 Q4 16 3Q 17 Y-Y (%) Ytd. (%) Key Financial Indicators (mn TRL) 3Q 16 Q4 16 3Q 17 Y-Y (%) Ytd. (%) Total Assets ,53% 11,83% Total Assets ,58% 11,67% Loans* ,01% 14,82% Loans* ,00% 15,91% Deposits ,89% 11,34% Deposits ,65% 17,81% Shareholder s Equity ,83% 14,92% Shareholder s Equity ,18% 14,83% Total revenues ,41% - Net profits ,04% - *Financial leasing receivables included. Total revenues ,05% - Net profits ,05% - *Financial leasing receivables included.

10 Agenda 1 Introduction 2 Financial Highlights 3 4 Market Comparison Appendix

11 Albaraka Türk 3Q 2017 Key Financial Highlights

12 6 Albaraka Turk 1H Main Highlights (Balance Sheet) TRL million Q3 16 Q4 16 Q4 17 Y-Y (%) Ytd. (%) Total Assets 28.633 32.851 33.827 18,14% 2.97% Total Funded Credits 20.331 22.

383 7,29% 4,54% Total Assets Total Funded Credits Total Collected Funds Asset Segmentation (Q3 17) 34.217 32.851 33.021 33.827 28.633 24.109 23.151 23.668 23.771 20.109 22.722 22.

12 12 6 Albaraka Turk 1H Main Highlights (Balance Sheet) TRL million Q3 16 Q4 16 Q4 17 Y-Y (%) Ytd. (%) Total Assets ,14% 2.97% Total Funded Credits ,62% 4.35% Deposits ,89% 4,14% Shareholder s Equity ,29% 4,54% Total Assets Total Funded Credits Total Collected Funds Asset Segmentation (Q3 17) Other Assets; 2% Liquid Assets*; 19% Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Securities Portfolio; 8% Funded Credits; 70% * **Liquid Assets includes Cash and Balances with the Central Bank, Financial Assets at Fair Value Through Profit and Loss(net) and Banks

13 6 Albaraka Turk Q3 Main Highlights (Income Statement) TRL million (Quarterly) Q3 16 Q2 17 Q3 17 Y-Y (%) Q-Q (%) Profit Share Income 541 655 610

Provision 10 20 3-70,0-85,0 Provisions 83 96 124 49,4 29,2 Net Profit 50 96 10-80,0-89,6 Net Profit Share Income Net Profit -80% Net Profit Share

13 13 6 Albaraka Turk Q3 Main Highlights (Income Statement) TRL million (Quarterly) Q3 16 Q2 17 Q3 17 Y-Y (%) Q-Q (%) Profit Share Income ,8-6,9 Net Profit Share Income ,8-18,4 Total Operating Profits ,8-21,6 Net Operating Profits ,2-35,7 Tax Provision ,0-85,0 Provisions ,4 29,2 Net Profit ,0-89,6 Net Profit Share Income Net Profit -80% Net Profit Share Margin* 243 7,8% ,18 4,14 4,17 4,32 4,21 10 Q3'16 Q2'17 Q3'17 Q3'16 Q2'17 Q3'17 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 * Trailing for last four quarters

14 7 Albaraka Turk - Asset Composition Composition of Total Assets (TRL mn) Liquid Assets (TRL mn)

Q1'17 21,69% Q2'17 23,63% Q3'17 22,04% Liquid Assets*; 19% Securities Portfolio; 8% Funded Credits;

454 Q3'17 *Liquid Assets includes Cash and Balances with the Central Bank and Banks Total Securities

831 2.052 556 625 580 669 612 2.747 988 509 8,40 8,39 8,84 9,62 9,22 1.251 1.383 1.428 1.649 1.

14 14 7 Albaraka Turk - Asset Composition Composition of Total Assets (TRL mn) Liquid Assets (TRL mn) Liquid Assets % of Total Assets Other Assets; 2% Q1'16 21,76% Q2'16 21,72% Q3'16 20,08% Q4'16 21,99% Q1'17 21,69% Q2'17 23,63% Q3'17 22,04% Liquid Assets*; 19% Securities Portfolio; 8% Funded Credits; 70% Q1' Q2' Q3' Q4' Q1' Q2' Q3'17 *Liquid Assets includes Cash and Balances with the Central Bank and Banks Total Securities Portfolio (TRL mn) Securities Yield (%) Available for sale Held to Maturity Other ,40 8,39 8,84 9,62 9, Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 (*) Profit share income received from securities for the last 4Q/4Q average securities

15 15 6 Albaraka Turk - Operating Performance Breakdown Income (million TRL) Key Movements in Net Operating Income (million TRL) Fees, commission and others Profit Share Income ,00% 14,77% ,85% ,00% 85,23% 88,15% Q3'16 Q2'17 Q3'17 Net Profit Share Income (million TRL) Profit Share Expense Profit Share Income Q'16 Net Profit Share Inc. 9,95% Fees & Comm Trading Income Yield Movement (%) Credit Yield Net Profit Share margin Cost of Funding Others 9,82% 9,73% 9,90% 9,82% 1H'17 Highlights 3Q 17 Total Profit Share Income up 16% Profit Share Expense increased 13,4% Net Profit Share Income increased 19,1% Net Trading Income declined 49,9% Total Operating Profit increased 12,7% Provisions increased 58% in 1H 2017 Net Profits decreased 21,1% in 1H ,52% 5,36% 5,21% 5,25% 4,18% 4,14% 4,17% 4,32% 5,30% 4,21% Q3 16 Q2 16 Q3 17 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17

16 Albaraka Turk - Funded Credits Portfolio Total Funded Credits (including financial leasing, million) Credit Yields(1) (%) QoQ Growth: 3,7% in TRL terms YoY growth: 16,6% in TRL terms TRL 20.

16 16 Albaraka Turk - Funded Credits Portfolio Total Funded Credits (including financial leasing, million) Credit Yields(1) (%) QoQ Growth: 3,7% in TRL terms YoY growth: 16,6% in TRL terms TRL USD* ,95 9,91 9,82 9,82 9, Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 *USD equivalent of total funded credits Composition of Total Funded Credits* (%) Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 (1) Profit share income received from credits for the last 4Q/4Q average credits Currency Composition of Total Funded Credits* (Q3 17) Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 EUR* 14,6% Corporate Credits 41,9 41,9 41,6 40,8 40,4 SME Credits 43,5 43,9 43,6 44,6 45,4 Retail Credits 14,6 14,2 14,8 14,6 14,2 Total USD* 32,9% TRL 52,4% *According to BRSA definition *Including USD & EUR indexed credits

17 17 Albaraka Turk - Asset Quality Non-performing Loans (TRL million) NPL Spesific Provisions Collateral NPL Ratio* *Including financial leasing & accruals and rediscounts ,75 5,61 6,02 5,36 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'16 Q1'17 Q2'17 Q3'17 Cost of Risk** (bps) Provisioning Ratio (%) 49,4 52,3 51,9 54,6 55,3 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 ** Specific provisions for credits for last 4Q/ 4Q average credits Q3'16 Q4'16 Q1'17 Q2'17 Q3'17

71 16% 18% 19% 19% 20% 21% 22% 20% 22% 21% Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Fund

18 18 Albaraka Turk - Funding Profile Composition of Total Liabilities (Q3 17, %) Composition of Funding Base (TRL million) 20,1% Funds Collected Wholesale Funding 19 Shareholders' Equity Others 63% 60% 61% 59% 59% 71 16% 18% 19% 19% 20% 21% 22% 20% 22% 21% Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Fund Borrowed* Current Accounts Participation accounts *Fund Borrowed includes Funds Borrowed, Borrowings from Money Market and Subordinated Loans

equivalent of total collected funds Cost

of Funds Collected (Q3 17, %) Average TL

7,90% 5,21% 8,00% 5,25% 8,19% 5,30% 30 5

0,80% 1,76% 0,82% 1,79% 0,93% 45 22 Up to

19 19 Albaraka Turk - Funding Profile (Collected Funds) Total Funds Collected (TRL million) Currency Composition of Funds Collected (Q3 17, %) TRL USD* 19,9% TRL USD EUR Others Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 *USD equivalent of total collected funds Cost of Funds Collected** Maturity Composition of Funds Collected (Q3 17, %) Average TL FC Precious Metal 8,30% 5,47% 8,10% 5,26% 7,90% 5,21% 8,00% 5,25% 8,19% 5,30% Current Acc. Up to 1 month Up to 3 months Up to 6 months 1,84% 1,63% 1,61% 1,08% 1,69% 0,80% 1,76% 0,82% 1,79% 0,93% Up to 1 year >1year Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 **Profit share expense to depositors for the last 4Q/4Q average participation accounts

Sheet (TRL million) Growth (%) Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Y-Y YtD Letter of Guarantee 7.746 7.810 7.593 7.129 6.

20 20 Albaraka Turk - Off balance sheet growth Off Balance Sheet Composition (%) LG LC Others LGs*-to-Total Assets *Below 20% of LGs to Total Risk is targeted ,1% 23,8% 23,0% ,8% 19,7% Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Off Balance Sheet (TRL million) Growth (%) Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Y-Y YtD Letter of Guarantee ,06-12,33 Letter of Credit ,51 20,45 Others* ,39 42,42 Total: ,74-1,91 *Revocable credit limits not included.

21 21 14 Income- Cost Dynamics Year on Year Change Quarterly Change Notes (000 TRL) Net Profit Share Income Net Fee Income Q Q % Q2 17 Q3 17 % , , , ,36 Profit share expense increased by 13,4% while PSI raised by 16,0% YoY basis. Joint venture projects returns reached to TL in 3Q 2017 (3Q 2016: TL ) Higher Net Fee income in 2017 (YoY) But lower rate of increse in 2017 Net Trading Income , ,27 Lower Foreign Exchange Income Other Income , ,43 - Provisioning , ,84 Higher provisions in 2017 Other Costs , ,09 Slower rate of increase in 2017 Tax , ,92 Net Profits , ,72 -

22 Agenda 1 Introduction 2 Financial Highlights 3 4 Market Comparison Appendix

23 23 Albaraka Turk - Total Growth Q Percent Q Q Albaraka Türk Participation Banks* Banking Sector* Albaraka Türk Participation Banks* Banking Sector* Asset Size -3,1-0,2 7,5 3,0 11,7 11,8 Total Credits** 2,8 3,9 5,6 3,9 15,9 14,6 Deposits/Collected Funds*** -1,2-1,9 7,5 4,1 17,8 11,3 * According to BRSA data ** Including Leasing Receivables, Interest (Profit Share) and Income Accruals and Rediscounts from Loans, Loans Extended to Banks *** Including Deposit (Participation Funds) Interest (Profit Share) Rediscounts and Deposit (Participation Funds) Collected from Banks Asset Size Growth Banking Sector Albaraka Türk 39,7% 33,9% 24,4% 26,4% 28,3% 21,0% 17,8% 12,6% 15,1% 18,2% 15,8% 11,1%

24 24 Albaraka Turk - Market Share Q Percent Q Q Albaraka Türk/ Participation Banks Albaraka Türk/ Banking Sector Participation Banks/ Banking Sector Albaraka Türk/ Participation Banks Albaraka Türk/ Banking Sector Participation Banks/ Banking Sector Asset Size 23,8 1,1 4,7 22,8 1,1 4,9 Total Credits* 24,8 1,2 4,9 23,1 1,1 4,9 Deposits/Collected Funds** 27,1 1,4 5,2 24,1 1,4 5,8 Banking Sector Participation Banking Sector Participation Banking; 4,9% Albaraka Türk; 22,8% * Including Leasing Receivables, Interest (Profit Share) and Income Accruals and Rediscounts from Loans, Loans Extended to Banks ** Including Deposit (Participation Funds) Interest (Profit Share) Rediscounts and Deposit (Participation Funds) Collected from Banks

25 25 Financial Ratios - Sector Comparison Percent Q Albaraka Türk Participation Banks Banking Sector Albaraka Türk Participation Banks Banking Sector CAR 13,46 16,17 15,57 17,37 17,25 17,20 NPL Ratio 4,75 3,58 3,22 5,36 3,92 3,08 Provisioning Ratio 52,31 61,00 77,39 55,34 68,13 79,53 Loan/Deposits 98,13 110,61 117,23 98,35 102,68 120,26 ROAA (IBT)* 0,88 1,10 1,89 0,66 1,25 2,00 ROAE (NI)* 9,91 9,71 13,26 7,72 11,47 14,30 Asset Yield 8,97 8,87 8,37 8,96 9,09 8,59 Asset Spread 4,53 4,45 3,39 4,51 4,41 3,45 Net Profit Share Margin* 4,14 4,54 4,01 4,21 4,56 4,07 Net Fee Income / Avg. Assets 1,04 0,80 0,96 0,91 0,77 0,97 Op Costs / Avg. Assets 2,47 2,33 2,34 2,13 2,28 2,29 Cost/Income** 53,65 46,37 40,68 52,42 43,51 38,90 Credits / Branches (000 TRL) Staff / Branches 17,82 15,04 17,70 18,07 14,88 17,98 CA / Deposits 23,44 28,35 20,33 25,32 28,81 21,16 *Cost: Operating Costs, Income: NII/NPSI, Net Fees and Commissions Income, Other Income

26 Agenda 1 Introduction 2 Financial Highlights 3 4 Market Comparison Appendix

27 27 Albaraka Turk- Summary Balance Sheet (Thousand TRL) Dec 16 Sep 17 Growth (%) Cash and Banks ,67% Financial Assets ,06% Funds Utilized ,35% Cash Credits ,53% NPL ,39% Provisions ,26% Net Financial Leasing Receivables ,95% Investments Held to Maturity (Net) ,88% Associates ,00% Fixed Assets ,22% Assets Held For Sale and Investment ,07% Other Assets (inc. Tax Assets) ,07% Total Assets ,97% Funds Collected ,14% Funds Borrowed ,76% Debts (inc. Tax) ,21% Provisions ,31% Tier II Sukuk ,46% Shareholders Equity ,54% Capital Capital Reserves (inc. Premium) Profit Reserves Profits Prior Periods 3, Current Year 217, Total Liabilities ,97%

28 28 Albaraka Turk Summary Income Statement (Thousand TRL) Sep 16 Sep 17 Growth Profit Share Income ,05% Profit Share Expense ,39% Net Profit Share Income ,13% Net Fees and Commissions Income ,80% Fees and Commissions Received ,12% Fees and Commissions Paid ,49% Net Trading Income ,86% Other Operating Income ,89% Total Operating Profit ,67% Provisions for Loan Losses ,98% Other Operating Expenses ,48% Net Operating Profit ,94% Tax Provision ,26% Net Profits ,10%

29 THANK YOU

30 Disclaimer THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND MAY NOT BE REPRODUCED, CIRCULATED, DISTRIBUTED OR PUBLISHED (IN WHOLE OR IN PART) OR DISCLOSED BY RECIPIENTS TO ANY OTHER PARTY. BY VIEWING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase any securities of Albaraka Türk Katılım Bankası A.Ş., nor shall any part of it form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Bank. The information contained in this document is published for the assistance of recipients, but is not to be relied upon authoritative or taken in substitution for the exercise of judgment by any recipient. The Bank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its content. Any purchase of shares of the Bank should be made solely on the basis of sound financial analysis on the part of the investor, with no liabilities arising against the Bank. The information used in preparing these materials was obtained from or through the Bank or the Bank s representatives or from public sources. Although prepared in good faith and from sources believed to be reliable, no reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its accuracy, completeness or fairness. The information in this presentation is subject to verification, completion and change. The projections, forecasts and estimates of the Bank contained herein are for illustrative purposes only and are based on management s current views and assumptions. Such projections, forecasts and estimates involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ materially from those anticipated in this presentation. The Bank expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based unless so required by applicable law. Investors should note many different risk factors could adversely affect the outcome and financial effects of the plans and projections described herein. As a result, you are cautioned not to place undue reliance on any forward-looking statements. The Bank, its advisers and each of their respective members, directors, officers and employees disclaim any liability in case projections and plans given in this document are not realised.

31 Contact Us Investor Relations Address : Saray Mahallesi Dr.Adnan Büyükdeniz Caddesi No: Ümraniye/ İSTANBUL yim@albarakaturk.com.tr Tel : Fax : Internet :

TURKEY: RECENT DEVELOPMENTS January September 2018

TURKEY: RECENT DEVELOPMENTS January September 218 3 81 4 698 961 7 34 7 96 9 66 8 98 1 931 1 6 11 11 88 11 19 1 883 1 97 12 48 12 112 Per capita GDP tripled while nominal GDP quadrupled in last 1 years