Turkish Capital Markets. June 2016

Transcription

1 Turkish Capital Markets June 2016

2 CONTENTS 3 Turkey at a Glance 16 Structure of the Turkish Financial Markets 28 Turkish Capital Markets Association 38 Turkish Capital Markets 55 Investment Institutions 81 Investor Profile 2

3 TURKEY AT A GLANCE

4 LOCATION 4

5 POLITICS The Republic of Turkey, founded in 1923, is a parliamentary democracy. Latest general elections were held in November The composition of the Grand National Assembly is as follows, as of June Justice and Development Party (Right) Republican People's Party (Left) Peoples' Democratic Party (Left) Nationalist Movement Party (Nationalist) Independent MPs 1 5

6 SOVEREIGN FOREIGN CURRENCY RATINGS (LONG TERM) S&P Moody's Fitch Investment-Grade Ratings Highest Credit Quality AAA Aaa AAA High Credit Quality AA Aa AA Strong Payment Capacity A A A Adequate Payment Capacity BBB Baa BBB- Speculative-Grade Ratings Speculative, Credit Risk BB+ Ba1 BB+ Developing due to Economic BB Ba2 BB Changes BB- Ba3 BB- High Speculative, Credit Risk B+ B1 B+ Present with Limited Margin B B2 B Safety B- B3 B- High Default Risk, CCC+ Caa1 CCC+ Capacity Depending on CCC Caa2 CCC Sustained Favourable CCC- Caa3 CCC- Conditions CC CC Default C, D Ca, C C, D Source: UNCTAD, Treasury The credit ratings of Turkey are highlighted in red. 6

7 POPULATION As of 2015: Population: 78.7 million Median age: 31 Labour force: 29.7 million, participation rate: 51.3% Unemployment rate: 10.3%. 7

8 GROSS DOMESTIC PRODUCT (BILLION $) Source:TurkStat 8

9 REAL GDP GROWTH 9.2% 8.8% 6.9% 4.7% 4.2% 4.0% 2.1% 3.0% 0.7% -4.8% Source:TurkStat 9

10 WORLD GDP RANKINGS (2015, BILLION $) Philippines Hong Kong Malaysia South Africa UAE Austria Thailand Iran Norway Belgium Poland Sweden Nigeria Taiwan Argentina Saudi Arabia Switzerland Turkey Netherlands Indonesia Mexico Spain Russia Australia Korea Canada Brazil Italy India France UK Germany Japan China USA Rank: 18th ,200 1,800 2,400 3,000 Source: IMF-WEO October 2015, TurkStat 10

11 ANNUAL INFLATION (%) 20 CPI PPI Source:TurkStat 11

12 FISCAL BALANCE 8% 6% Interest Expenditure/GDP Budget Balance/GDP Primary Balance/GDP 4% 2% 0% -2% -4% -6% -8% Source:MoF 12

13 PUBLIC DEBT (EU DEFINED PUBLIC DEBT/GDP) 47% 40% 40% 46% 42% 39% 36% 36% 34% 33% Source: Treasury 13

14 FOREIGN TRADE Billion $ Exports Imports X+M/GDP 60% 50% % % % 50 10% Source: TurkStat 0% 14

15 CURRENT ACCOUNT BALANCE Bn. $ Current Account Financial Account Chg. in Reserves Source: CBRT 15

16 STRUCTURE OF THE TURKISH CAPITAL MARKETS

17 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). 17

18 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 -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 -Private Pension Companies -Private Pension Funds 18

19 CAPITAL MARKET INSTITUTIONS IN TURKEY Capital Markets Board TCMA (SRO) Borsa Istanbul Banks Brokerage Firms Inv. Trusts Asset Mgmt. Co. Public Co. Listed Co. Licensing and Training Agency Rating Co. Ind. Audit Co. Settlement & Custody Bank (Takasbank) Central Registry Agency 19

20 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 o o Primary markets, Secondary markets, Investment services. 20

21 BORSA ISTANBUL Borsa Istanbul, formerly named as Istanbul Stock Exchange, was established in The exchange was demutualised in 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 Technological infrastructure is provided by NASDAQ OMX. European Investment Bank acquired a 10% share in

22 BORSA ISTANBUL The main markets and the traded securities on Borsa Istanbul are: o o o o Equity Market: Shares, rights coupons, ETFs, warrants, certificates. Debt Securities Market: Government bonds, corporate bonds, asset backed securities, Islamic bonds, repo-reverse repo transactions, Turkish eurobonds. 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. Precious Metals and Diamond Market: Gold, silver, platinum and palladium. 22

23 TAKASBANK (ISTANBUL SETTLEMENT AND CUSTODY BANK) Takasbank was established in 1988 as a department of Borsa Istanbul. It was incorporated as a separate company in 1992 and became a nondeposit taking bank in Takasbank is: 23 o o o The clearing and settlement centre for Borsa Istanbul, The central counterparty (CCP) for Borsa Istanbul Futures & Options Market, 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. 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.

24 CENTRAL REGISTRY AGENCY Central Registry Agency (CRA) was established in 2001 as a private company. CRA 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. 24

25 INVESTOR COMPENSATION CENTRE Investors Protection Fund, which covered equity settlement obligations, was established in 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 120,823 (~$ 42,000) in 2016, in case of liquidation or bankruptcy of investment institutions. All investment institutions have to be a member of the Investor Compensation Centre. 25

26 ACTIVITIES OF INTERMEDIARIES Equity Trading BROKERAGE FIRMS Leveraged FX trading Public Offering Asset Management Investment Consultancy Fixed Income Trading BANKS Derivatives Trading (exc. equity-linked products for banks) 26

27 TYPES OF BROKERAGE FIRMS Market Makers Execution Brokers Introducing Brokers execution of orders from their own account by positioning their customers as counterparty minimum capital: TL 25 million (~$ 8.5 million). execution of orders of in the name of customers and/or their own account offering custody services minimum capital: TL 10 million (~$ 3.5 million). reception of orders and transfer them to other brokers minimum capital: TL 2 million (~$ 700,000). 27

28 TURKISH CAPITAL MARKETS ASSOCIATION

29 TCMA Founded in April 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 234 members as of June 2016; 90 brokerage firms, 44 banks, 52 portfolio management companies, 9 securities investment trusts, 31 real estate investment trusts and 8 venture capital investment trusts. 29

30 MEMBERS Investment Trusts Asset Management Firms Banks Brokerage Firms /03 30

31 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. 31

32 FUNCTIONS 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. 32

33 ORGANISATION 33

34 DEPARTMENTS Compliance and Surveillance Legal Affairs Monitors and inspects the activities of the members. Monitors related regulations, makes proposals for changes in the existing or draft regulations. Provides legal advisory services. Conducts necessary legal investigations about the applications and complaints made to the Association. Keeps record of disciplinary action of the members. Assists in the resolution of disputes. 34

35 DEPARTMENTS Research and Statistics Gathers statistical data on members and produces periodic reports. Publishes research to enhance the development of the capital markets. Represents the Association at international institutions. Training Prepares training programs towards professional development of industry professionals. Membership Affairs Examines applications for membership, keeps detailed records of members and provides advice on members to the Association. 35

36 DEPARTMENTS Corporate Communications Manages media correspondence and public relations. Promotes investor education activities of the Association. HR, Administrative and Financial Affairs Manages the administrative, accounting and personnel operations of the Association. Information Technology In charge of the IT backbone of the Association. 36

37 INTERNATIONAL MEMBERSHIPS Asia Securities Forum (ASF) member since Federation of Euro-Asian Stock Exchanges (FEAS) affiliate member since International Council of Securities Associations (ICSA) member since International Forum for Investor Education (IFIE) member since International Forum for Investor Education/Asia Chapter founding member since International Organization of Securities Commissions (IOSCO) affiliate member since

38 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 38

39 TURKISH CAPITAL MARKETS

40 2009/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /03 BIST-100 INDEX & TRADING VOLUME Point Mn. $ 100,000 4,000 Trading Volume 90,000 BIST-100 (TL) 3,500 80,000 70,000 60,000 50,000 40,000 30,000 20,000 3,000 2,500 2,000 1,500 1, Source: Borsa Istanbul 40

41 MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION $) /03 Source: Borsa Istanbul 41

42 BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION 100% 90% 80% 70% Technology Financials Services Industrials 60% 50% 40% 30% 20% 10% 0% Source: Borsa Istanbul 42

43 DOMESTIC MARKET CAPITALIZATION (2015, BILLION $) Irish Warsaw Qatar Borsa Istanbul Santiago Oslo Bors Philippines Tel Aviv Thailand Indonesia Malaysia Moscow Mexico Saudi Arabia Brazil Singapore JSE Taiwan Spain Australia South Korea OMX Nordic NSE India BSE India Swiss TMX Deutsche Hong Kong Euronext Shenzhen London Group Shanghai Tokyo Nasdaq OMX NYSE Source: WFE 189 Rank: 32nd ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,549 4,895 7,281 17,787 WFE definition excluding investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange. 43

44 MARKET CAPITALIZATION/GDP (2015) Borsa Istanbul Wiener HoChiMinh Colombo Brazil Warsaw Colombia Lima Moscow Shenzhen Abu Dhabi Mexico Shanghai Indonesia Nasdaq OMX Amman New Zealand Casablanca Malta Oslo Bors Deutsche Irish Bahrain Mauritius Spain Saudi Arabia NSE India Muscat BSE India Qatar Santiago Philippines Luxembourg Tel Aviv London Group Euronext South Korea Thailand Australia NYSE TMX OMX Nordic Tokyo Malaysia Taiwan Singapore Swiss JSE Hong Kong 25% 0% 40% 80% 120% 160% 200% Source: WFE, IMF Rank: 49th 44

45 NUMBER OF SECURITIES IN EQUITY MARKET Warrants+Certificate ETF+Inv. Trusts Other Equities Equities /03 Source: Borsa Istanbul Equities: BIST Main+BIST Star+REITs+Venture Capital Investment Trusts Other Equities: BIST Emerging Companies, Watchlist, Pre-market Trading Platform 45

46 NUMBER OF LISTED COMPANIES (2015) Egypt Moscow Philippines Swiss Colombo HoChiMinh Lima Santiago Tehran Brazil JSE Borsa Istanbul Tel Aviv Indonesia Deutsche Thailand Taipei Singapore OMX Nordic Taiwan Malaysia Warsaw Euronext Shanghai Shenzhen Hong Kong South Korea Australia NYSE London Group Nasdaq OMX Tokyo TMX Spain BSE India 393 Rank: 24th ,000 1,500 2,000 2,500 3,000 3,513 3,559 3,651 5,836 Source: WFE WFE definition excludes investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange. 46

47 EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION $) /03 Source: Borsa Istanbul 47

48 EQUITY TRADING VOLUME (2015, BILLION $) Irish Warsaw Tel Aviv Indonesia BSE India Malaysia Oslo Bors Taipei Singapore Thailand Moscow JSE Borsa Istanbul Brazil Saudi Arabia Taiwan NSE India OMX Nordic Australia Spain Swiss TMX Mexico Deutsche South Korea Hong Kong Euronext London Group Tokyo BATS Chi-x Europe BATS US Shenzhen NYSE Shanghai Nasdaq OMX Rank: 23rd ,000 4,000 6,000 8,000 10,000 14,217 18,878 19,991 20,502 32,984 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. 48

49 TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION ) Irish New Zealand HoChiMinh Hungary Warsaw NSE India JSE Athens Dubai Oslo Bors OMX Nordic TMX Swiss Hong Kong Australia Moscow Thailand Taiwan Brazil Deutsche Euronext Saudi Arabia London Group NYSE Tokyo Spain South Korea Borsa Istanbul Taipei Mexico Shanghai Nasdaq OMX Shenzhen 186% 0% 40% 80% 120% 160% 200% 208% 290% 451% 453% 519% Rank: 6th Source: WFE 49

50 SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION $) 2,878 1,639 1,613 2, /03 Source: Borsa Istanbul 50

51 % 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% SHORT SELLING IN BORSA ISTANBUL Short Selling Volume (Bn. $) Share in Total Volume 19% 17% 16% 12% 6% /03 Source: Borsa Istanbul 51

52 MARGIN TRADING 10,417 Outstanding Loan Size (Mn. $) No. of Contracts 11,462 9,914 9,539 9, /03 Source: TCMA 52

53 FUTURES TRADING VOLUME OF BORSA ISTANBUL (BILLION $) Trading Volume (Billion. $) No. of Contracts (Million) /03 53 Source: Borsa Istanbul, TurkDex Security expiry transactions are included..

54 TRADING VOLUME IN FUTURES MARKETS (2015, BILLION $) NZX Ltd Budapest SE Athens Oslo ASX Group ICE (Canada) Warsaw Colombia Mexican DE Malasysia DE Borsa Istanbul BSE India Euronext Spain JSE Moscow OMX Nordic TAIFEX NSE-India Zhengzhou CE Hong Kong Dalian CE-China ICE (US) Osaka Tokyo SE Shanghai FE LME-London Korea Montreal ASX SFE Derivatives BM&FBOVESPA Deutsche Börse CFFEX- China ICE (Europe) CME Group Rank: 25th ,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 47,327 64,382 85, ,624 Source: WFE 54

55 NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL /03 Source: WFE 55

56 NUMBER OF LISTED CORPORATE BONDS (2015) Mauritius Tokyo Malaysia Ljubljana Casablanca Thailand Malta New Zealand Colombo Hungary Kazakhstan Shenzhen Brazil Lima Warsaw Borsa Istanbul Colombia Hong Kong Swiss Tel Aviv Moscow Taipei Buenos Aires JSE Oslo Bors Wiener Shanghai Spain NSE India Irish BSE India Euronext OMX Nordic South Korea London Group 464 Rank: 20th 0 1,000 2,000 3,000 4,000 5,000 6,000 7,021 9,905 Source: WFE 56

57 INVESTMENT INSTITUTIONS

58 FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION $) Brokerage Firms Banks /03 Source: Borsa Istanbul 58

59 REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION $) 7, ,669 6, Brokerage Firms Banks 5, ,635 6,658 6,009 6,044 5,400 1, , /03 Source: Borsa Istanbul 59

60 EQUITY TRADING VOLUME OF INTERMEDIARIES (BN. $) /03 Source: Borsa Istanbul 60

61 FUTURES TRADING VOLUME OF INVESTMENT INSTITUTIONS (BILLION $) Banks Brokerage Firms /03 Source: Borsa Istanbul, TurkDex 61

62 FOREX TRADING VOLUME (BILLION $) 6,224 Liquidity Provider Client 2,732 3,516 2,753 1,526 1,320 1,027 3,492 1, ,546 1, /03 Source: TCMA 62

63 CONCENTRATION IN TRADING VOLUMES (2015) No. of Intermediaries % 7% 19% 17% 7% 23% 20% 23% 54% 75% 62% 69% Equity Fixed Income Futures Forex Source: Borsa Istanbul, TCMA 63

64 TOP 10 MEMBERS IN THE MARKETS (2015) Equity Market Futures Market 1 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 1 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 11% 2 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 7% 2 TEB YATIRIM MENKUL DEĞERLER A.Ş. 11% 3 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 7% 3 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 7% 4 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 5% 4 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 5% 5 AK YATIRIM MENKUL DEĞERLER A.Ş. 4% 5 SANKO MENKUL DEĞERLER A.Ş. 4% 6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 4% 6 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4% 7 TEB YATIRIM MENKUL DEĞERLER A.Ş. 4% 7 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 4% 8 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 4% 8 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4% 9 FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 4% 9 DEUTSCHE SECURITIES MENKUL DEĞERLER A.Ş. 4% 10 BURGAN YATIRIM MENKUL DEĞERLER A.Ş. 3% 10 AK YATIRIM MENKUL DEĞERLER A.Ş. 3% Total (bn. $) 761 Total (bn. $) 417 Fixed Income Market Forex Market 1 AKBANK T.A.Ş. 29% 1 GCM MENKUL KIYMETLER A.Ş. 12% 2 GARANTİ BANKASI A.Ş. 7% 2 IŞIK MENKUL DEĞERLER A.Ş. 9% 3 YAPI VE KREDİ BANKASI A.Ş. 7% 3 INVEST-AZ MENKUL DEĞERLER A.Ş. 8% 4 J.P. MORGAN CHASE BANK İSTANBUL 6% 4 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 8% 5 HSBC BANK A.Ş. 6% 5 DESTEK MENKUL DEĞERLER A.Ş. 7% 6 DENİZBANK A.Ş. 6% 6 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 6% 7 CITIBANK A.Ş. 4% 7 SANKO MENKUL DEĞERLER A.Ş. 5% 8 TÜRKİYE İŞ BANKASI A.Ş. 3% 8 İNTEGRAL MENKUL DEĞERLER A.Ş. 5% 9 DEUTSCHE BANK A.Ş. 3% 9 IKON MENKUL DEĞERLER A.Ş. 5% 10 TÜRK EKONOMİ BANKASI A.Ş. 3% 10 ALB MENKUL DEĞERLER A.Ş. 4% Total (bn. $) 389 Total (bn. $) 6,224 Source: Borsa Istanbul, TCMA 64

65 NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY) Privatization IPO&SPO-Equities M&A Other Consultancy Corporate Actions Bond Issuance /03 Source: TCMA 65

66 INITIAL PUBLIC OFFERINGS 30 IPO Volume (Mn. $) No. of IPOs /03 Source: Borsa Istanbul 66

67 PRIVATE DEBT SECURITIES ISSUES Size of Private Debt Securities Issued (bn. $) No. of Private Debt Securities Issued /03 Source: Borsa Istanbul 67

68 INSTITUTIONAL INVESTMENTS (BILLION $) Venture Capital Inv. Trusts REITs Investment Trusts Pension Funds Mutual Funds /03 Source: Borsa Istanbul, CMB 68

69 ASSET MANAGEMENT BY BROKERAGE FIRMS Assets Under Management (Mn. $) No. of Investors 2,923 2,846 2,753 2,649 2,511 2,101 2,049 2, /03 Source: TCMA 69

70 3,500 3,000 2,500 2,000 1,500 1, ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES Assets Under Management (Mn. $) No. of Investors 2,681 2,422 2,861 2,118 2,283 31,710 30,330 35,153 34,604 35, /03 Source: CMB, TCMA 70

71 BROKERAGE FIRMS BRANCH NETWORK Bank Branches Branches Rep. Offices 7,174 7,288 6, ,162 6, ,684 6,950 7,071 5,763 5, /03 Source: TCMA 71

72 BROKERAGE FIRMS EMPLOYEES 6,639 6,697 5,258 5,480 5, /03 Source: TCMA 72

73 ASSET MANAGEMENT COMPANIES EMPLOYEES /03 Source: TCMA 73

74 BANKS EMPLOYEES 214, , , , , /03 Source: BRSA 74

75 BALANCE SHEET OF BROKERAGE FIRMS (MILLION $) Current Assets Total Assets Shareholders' Equity 5,847 6,416 6,566 6,503 6,085 6,076 5,885 6,426 4,881 5,247 1,711 1,566 1,572 1,374 1, /03 Source: TCMA 75

76 INCOME STATEMENT OF BROKERAGE FIRMS (MILLION $) Total Revenues Operating Profit Net Profit /03 Source: TCMA 76

77 BREAKDOWN OF BROKERAGE FIRMS REVENUES Others Asset Management Corporate Finance Proprietary Trading Profits Brokerage Commissions 15% 18% 19% 18% 18% 15% 18% 19% 18% 18% 8% 10% 9% 8% 7% 3% 12% 4% 5% 5% 61% 64% 64% 66% 70% /03 Source: TCMA 77

78 BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION $) Current Assets Total Assets Shareholders' Equity /03 Source: TCMA 78

79 INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION $) Total Revenues Operating Profit Net Profit /03 Source: TCMA 79

80 BREAKDOWN OF ASSET MANAGEMENT COMPANIES REVENUES Discretionary Asset Mgmt. Fund Sales Financial Advisory Investment Trust Mgmt. Pension Fund Mgmt. Mutual Fund Mgmt. 14% 11% 8% 7% 25% 30% 31% 28% 59% 58% 60% 64% /03 Source: TCMA 80

81 INVESTOR PROFILE

82 BREAKDOWN OF TOTAL SAVINGS (BILLION $) Equities Fixed Income Deposits Source: BRSA, CRA, TCMA estimates 82

83 SAVINGS OF DOMESTIC INVESTORS 5% 6% 6% 6% 5% Equities 31% 31% 27% 27% 25% Fixed Income Deposits 64% 63% 68% 67% 70% Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of December 2015: US$ 571bn 83

84 SAVINGS OF FOREIGN INVESTORS Equities 48% 49% 42% 46% 43% Fixed Income Deposits 36% 39% 39% 36% 32% 15% 12% 19% 18% 26% Source: BRSA, CRA, TCMA estimates Total Foreign Inv. Savings as of December 2015: US$ 112 bn 84

85 NUMBER OF EQUITY INVESTORS Number of Equity Investors (thou.) Domestic Investors 1, , , ,049.6 Dom. Individuals Dom. Corporations Dom. Institutionals 1, , , , Foreign Investors For. Individuals For. Corporations For. Institutionals Total 1, , , ,059.3 Source: CRA 85

86 BREAKDOWN OF MARKET CAPITALIZATION (BILLION $) Privately Held Foreigners' Portfolio Domestics' Portfolio Source: CRA, Borsa Istanbul 86

87 SHARE OF FOREIGN INVESTORS MCap Vol. 80% Share in Free Float Mcap Share in Trading Volume 32% 70% 28% 60% 24% 50% 20% 40% 16% 30% 12% 20% 8% 10% 4% 0% % Source: CRA, Borsa Istanbul 87

88 EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES 100% 90% 80% 70% 60% For. Institutional For. Corporation For. Individual 50% 40% 30% 20% 10% Dom. Institutional Dom. Corporation Dom. Individual 0% Source: CRA Total equity portfolio as of December 2015: US$ 77.6 bn 88

89 BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES 100% 90% 80% 70% 60% For. Institutional For. Corporation For. Individual 50% 40% 30% 20% 10% Dom. Institutional Dom. Corporation Dom. Individual 0% /03 Source: TCMA 89

90 CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES 100% 90% For. Institutional 80% 70% 60% For. Corporation For. Individual 50% 40% Dom. Institutional 30% 20% 10% Dom. Corporation Dom. Individual 0% Source: CRA Total corporate bond portfolio as of December 2015: US$ 16.2 bn. 90

91 MUTUAL FUND INVESTORS Portfolio Size (bn. $) 3.0 Number of Investors (mn.) Source: CRA

92 PENSION FUND INVESTORS Portfolio Size (bn. $) Number of Investors (mn.) Source: PMC

93 BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES (BROKERAGE FIRMS ONLY) 100% 90% 80% 70% 60% For. Institutional For. Corporation For. Individual 50% 40% 30% 20% 10% Dom. Institutional Dom. Corporation Dom. Individual 0% /03 Source: TCMA 93

94 FOREX TRADING VOLUME OF BROKERAGE FIRMS 100% For. Institutional 80% For. Corporation 60% For. Individual 40% Dom. Institutional 20% Dom. Corporation Dom. Individual 0% /03 Source: TCMA 94

95