Turkish Capital Markets. July 2017

Transcription

1 Turkish Capital Markets July 2017

2 CONTENTS 3 Turkish Economy at a Glance 5 Structure of the Turkish Financial Markets 18 Turkish Capital Markets Association 26 Turkish Capital Markets 44 Investment Institutions 68 Investor Profile 2

3 TURKISH ECONOMY AT A GLANCE

4 KEY MACRO-ECONOMIC INDICATORS Population and Employment Population (mn.) Unemployment (average, %) National Accouts GDP (bn. $) GDP per capita ($) 11,588 12,480 12,112 11,014 10,807 GDP, real growth (%) External Balance Exports (FOB, bn. $) Imports (CIF, bn. $) Foreign Trade Balance (bn. $) Current Account Balance (bn. $) Current Account Balance/GDP (%) Foreign Direct Investment (net, bn. $) CBRT Reserves (including gold, bn. $) External Debt (bn. $) Prices CPI (y-o-y, %) PPI (y-o-y, %) Fiscal Balance Primary Balance/GDP (%) Budget Balance/GDP (%) General Government Debt/GDP (%) Exchange Rates USD (year-end) Euro (year-end) Source: CBRT, Treasury, TurkStat 4

5 STRUCTURE OF THE TURKISH CAPITAL MARKETS

6 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 enacted. 6

7 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 7

8 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 8

9 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. 9

10 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

11 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, money market. 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. 11

12 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: 12 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 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.

13 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. 13

14 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 125,451 (~$ 35,000) in 2017, in case of liquidation or bankruptcy of investment institutions. All investment institutions have to be a member of the Investor Compensation Centre. 14

15 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) 15

16 TYPES OF BROKERAGE FIRMS Market Makers Execution Brokers execution of orders from their own account by positioning their customers as counterparty minimum capital: TL 25 million. execution of orders of in the name of customers and/or their own account offering custody services minimum capital: TL 10 million. Introducing Brokers reception of orders and transfer them to other brokers minimum capital: TL 2 million. 16

17 ASSET MANAGEMENT COMPANIES Portfolio Management Companies Real Estate 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. Venture Capital Portfolio Management Companies May establish only venture capital investment funds Mn. capital required varies btw. TL 1 million and TL 5 million depending on AUM. 17

18 TURKISH CAPITAL MARKETS ASSOCIATION

19 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 227 members as of June 2017; 83 brokerage firms, 45 banks, 51 portfolio management companies, 9 securities investment trusts, 31 real estate investment trusts and 8 venture capital investment trusts. 19

20 MEMBERS Investment Trusts Asset Management Firms Banks Brokerage Firms /06 20

21 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. 21

22 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. 22

23 ORGANISATION Discipline Committee Chairman (Board of Directors) Board of Auditors Secretary General Assistant Secretary General Assistant Secretary General Assistant Secretary General Research & Statistics Corporate Communications Training Legal Affairs Compliance & Surveillance Human Resources, Administrative & Financial Affairs Information Technologies Membership Affairs 23

24 INTERNATIONAL MEMBERSHIPS Asia Securities Forum (ASF) member since Federation of Euro-Asian Stock Exchanges (FEAS) affiliate member since OECD International Network on Financial Education (INFE) 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 Islamic Financial Services Board (IFSB) observer member since

25 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 25

26 TURKISH CAPITAL MARKETS

27 BIST-100 INDEX & TRADING VOLUME Point 100,000 Mn. TL 10,000 Trading Volume BIST-100 (TL) 80,000 8,000 60,000 6,000 40,000 4,000 20,000 2, Source: Borsa Istanbul 27

28 MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL) /06 Source: Borsa Istanbul 28

29 BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION 100% 90% 80% 70% 60% 50% Technology Financials Services Industrials 40% 30% 20% 10% 0% Source: Borsa Istanbul 29

30 CONCENTRATION IN THE EQUITY MARKET (MCAP) No. of Equities 100% % 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: Borsa Istanbul 30

31 DOMESTIC MARKET CAPITALIZATION (2016, BILLION $) Abu Dhabi Warsaw Qatar Borsa Santiago Tel Aviv Oslo Bors Philippines Mexico Malaysia Indonesia Thailand Saudi Arabia Moscow Singapore Spain Brazil Taiwan JSE OMX Nordic South Korea Australia Swiss NSE India BSE India Deutsche TMX Hong Kong Shenzhen Euronext London Shanghai Tokyo Nasdaq OMX NYSE 158 Rank: ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,104 5,062 7,779 19,573 Source: WFE WFE definition excluding investment funds, ETFs, unit trusts, unlisted companies, holding companies with a mere business of holding shares on the exchange. 31

32 MARKET CAPITALIZATION/GDP (2016) Borsa Istanbul 20% Rank: 51 Colombo Kazakhstan Wiener Shenzhen Dubai Warsaw Mexico HoChiMinh Shanghai Abu Dhabi Colombia Muscat Nasdaq OMX Amman Lima Malta Brazil Indonesia New Zealand Irish Deutsche Moscow Casablanca Spain Oslo Bors Bahrain Mauritius NSE India BSE India Tel Aviv Saudi Arabia London Group Philippines Qatar Santiago Euronext South Korea Luxembourg NYSE Australia Thailand OMX Nordic Malaysia Tokyo TMX Taiwan Swiss Singapore JSE Hong Kong Source: WFE, IMF 0% 40% 80% 120% 160% 200% 213% 221% 329% 1013% 32

33 NUMBER OF SECURITIES IN EQUITY MARKET Warrants+Certificate ETF+Inv. Trusts Other Equities Equities ,071 1, /06 Source: Borsa Istanbul Equities: BIST Main+BIST Star+REITs+Venture Capital Investment Trusts Other Equities: BIST Emerging Companies, Watchlist, Pre-market Trading Platform 33

34 NUMBER OF LISTED COMPANIES (2016) Colombo Santiago HoChiMinh Tehran Brazil JSE Borsa Istanbul Tel Aviv Indonesia Deutsche Thailand Singapore Warsaw Malaysia Taiwan OMX Nordic Euronext Shanghai NSE India Shenzhen Hong Kong South Korea Australia NYSE London Group Nasdaq OMX TMX Spain Tokyo BSE India 381 Rank: 24 3,419 3,506 3,541 5, ,000 1,500 2,000 2,500 3,000 Source: WFE 34

35 EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL) ,023 1, /06 Source: Borsa Istanbul 35

36 EQUITY TRADING VOLUME (2016, BILLION $) Moscow Saudi Arabia Thailand Borsa Istanbul JSE Taiwan Brazil NSE India OMX Nordic Spain Australia Swiss TMX Deutsche Hong Kong South Korea London Group Euronext Tokyo Shanghai BATS Chi-x Shenzhen BATS US NYSE Nasdaq OMX 331 Rank: 22 11,673 13,683 19,737 31, ,000 4,000 6,000 8,000 10,000 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. 36

37 TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION ) Mexico New Zealand Warsaw Athens Dubai Irish HoChiMinh Moscow JSE NSE India Hong Kong Oslo Bors Egypt TMX Taiwan OMX Nordic London Group Saudi Arabia Brazil Australia Swiss Deutsche Thailand Euronext Spain NYSE Tokyo South Korea Taipei Shanghai Borsa Istanbul Shenzhen Nasdaq OMX Rank: 3 210% 363% 411% Source: WFE 0% 40% 80% 120% 160% 200% 37

38 SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION TL) 6,328 6,296 5,565 6,654 3, /06 Source: Takasbank 38

39 % 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% SHORT SELLING IN BORSA ISTANBUL Short Selling Volume (bn. TL) Share in Total Volume 16% 17% 17% 13% 12% /06 Source: Borsa Istanbul 39

40 MARGIN TRADING Outstanding Loan Size (mn. TL) No. of Contracts 10,417 9,914 9,585 9,633 9,558 1,160 1,148 1,507 1,465 1, /03 Source: TCMA 40

41 FUTURES TRADING VOLUME OF BORSA ISTANBUL Futures Trading Volume (bn. TL) No. of Contracts (million) /06 41 Source: Borsa Istanbul, TurkDex Security expiry transactions are included..

42 TRADING VOLUME IN FUTURES MARKETS (2016, BILLION $) Borsa Istanbul 131 Rank: 26 Malasysia DE BSE India Spain JSE MCX-India Euronext Moscow Nasdaq OMX Taiwan FE NSE-India CFFEX- China Hong Kong ICE (US) Korea Zhengzhou CE Dalian CE-China Tokyo SE Shanghai FE BM&FBOVESPA Montreal LME-London ASX SFE Derivatives Deutsche Börse ICE (Europe) CME Group 66, ,967 1,025, ,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Source: WFE 42

43 NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL /06 Source: WFE 43

44 NUMBER OF LISTED CORPORATE BONDS (2016) Kazakhstan Brazil Lima Warsaw Shenzhen Borsa Istanbul Colombia Tel Aviv Hong Kong Swiss Moscow Taipei Buenos Aires JSE Oslo Bors Wiener Spain Shanghai NSE India Irish Euronext BSE India OMX Nordic South Korea London Group 519 Rank: 20 5,311 5,383 7,276 8,901 Source: WFE 0 1,000 2,000 3,000 4,000 5,000 44

45 INVESTMENT INSTITUTIONS

46 FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL) Brokerage Firms 1, Banks 1,635 1,257 1, , , , , /06 Source: Borsa Istanbul Excluding Central Bank and Takasbank. 46

47 REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION TL) Brokerage Firms Banks 14,626 16,315 1,614 14,877 12,779 1,397 1,331 1,271 11,508 13,229 14,700 13,546 8, , /06 Source: Borsa Istanbul Excluding Central Bank and Takasbank. 47

48 EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL) 1,634 1,746 2,045 2,027 1, /06 Source: Borsa Istanbul 48

49 FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL) Banks Brokerage Firms 1, , ,131 1, /06 Source: Borsa Istanbul, TurkDex 49

50 FOREX TRADING VOLUME (BILLION TL) 21,850 Liquidity Provider Client 17,005 9,604 7,459 7,693 4,956 3,340 12,245 5,032 1,986 9,546 2,291 2,970 4,353 2, /05 Source: TCMA 50

51 CONCENTRATION IN TRADING VOLUMES (2017/06) No. of Intermediaries % 25% 7% 18% 12% 9% 20% 23% 57% 75% 68% 69% Equity Fixed Income Futures Forex Source: Borsa Istanbul, TCMA Note: Forex trading volume data as of 2017/05 period 51

52 TOP 10 MEMBERS IN THE MARKETS (2017/06) Equity Market Futures Market 1 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 10% 1 IS YATIRIM MENKUL DEGERLER A.S. 15% 2 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 2 GARANTI YATIRIM MENKUL DEGERLER A.S. 12% 3 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 7% 3 TEB YATIRIM MENKUL DEGERLER A.S. 10% 4 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 4 DENIZ YATIRIM MENKUL KIYMETLER A.S. 6% 5 FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 5% 5 AK YATIRIM MENKUL DEGERLER A.S. 6% 6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 5% 6 FINANS YATIRIM MENKUL DEGERLER A.S. 5% 7 A1 CAPITAL YATIRIM MENKUL DEĞERLER A.Ş. 5% 7 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 4% 8 MERRILL LYNCH MENKUL DEĞERLER A.Ş. 4% 8 A1 CAPITAL MENKUL DEGERLER A.S. 4% 9 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4% 9 GEDIK YATIRIM MENKUL DEGERLER A.S. 3% 10 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4% 10 SANKO MENKUL DEGERLER A.S. 3% Total (bn. TL) 1,276 Total (bn. TL) 757 Fixed Income Market Forex Market 1 AKBANK T.A.Ş. 14% 1 GCM MENKUL KIYMETLER A.Ş. 14% 2 HSBC BANK A.Ş. 11% 2 INVEST-AZ MENKUL DEĞERLER A.Ş. 10% 3 TÜRKİYE GARANTİ BANKASI A.Ş. 10% 3 IŞIK MENKUL DEĞERLER A.Ş. 9% 4 AK YATIRIM MENKUL DEĞERLER A.Ş. 7% 4 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 7% 5 YAPI VE KREDİ BANKASI A.Ş. 6% 5 AK YATIRIM MENKUL DEĞERLER A.Ş. 7% 6 TÜRK EKONOMİ BANKASI A.Ş. 6% 6 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 6% 7 TÜRKİYE İŞ BANKASI A.Ş. 5% 7 İNTEGRAL YATIRIM MENKUL DEĞERLER A.Ş. 5% 8 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 5% 8 DESTEK MENKUL DEĞERLER A.Ş. 4% 9 JPMORGAN CHASE BANK NATIONAL ASSOCIATION M 4% 9 VENBEY YATIRIM MENKUL DEĞERLER A.Ş. 3% 10 FİNANSBANK A.Ş. 4% 10 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 3% Total (bn. TL) 620 Total (bn. TL) 5,032 Source: Borsa Istanbul, TCMA Note: Forex trading volume data as of 2017/05 period 52

53 NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY) Privatization M&A IPO&SPO-Equities Corporate Actions Other Consultancy Bond Issuance /03 Source: TCMA 53

54 INITIAL PUBLIC OFFERINGS 19 IPO Volume (mn. TL) No. of IPOs , , /06 Source: Borsa Istanbul 54

55 CORPORATE DEBT SECURITIES ISSUANCE ÖSBA İhraç Miktarı (myr. TL) Borçlanma Aracı Sayısı /06 Source: Borsa Istanbul 55

56 INSTITUTIONAL INVESTMENTS (BILLION TL) Venture Capital Inv. Trusts REITs Investment Trusts Pension Funds Mutual Funds /03 Source: Borsa Istanbul, TCMA 56

57 ASSET MANAGEMENT BY BROKERAGE FIRMS Assets Under Management (mn. TL) No. of Investors 2,649 3,709 3,616 2,753 2,923 4,366 5,375 1,267 1,341 1, /03 Source: TCMA 57

58 ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES Assets Under Management (mn. TL) 3,500 3,000 No. of Investors 2,688 3,082 3,058 2,500 2,000 2,168 2,277 1,500 1, ,828 81, , , , /03 Source: CMB, TCMA 58

59 BROKERAGE FIRMS BRANCH NETWORK Bank Branches Branches Rep. Offices 7,174 7, , ,387 5, ,950 7,071 5,763 5,018 5, /03 Source: TCMA 59

60 BROKERAGE FIRMS EMPLOYEES 6,632 6,478 5,480 5,657 5, /03 Source: TCMA 60

61 ASSET MANAGEMENT COMPANIES EMPLOYEES /03 Source: TCMA 61

62 BANKS EMPLOYEES 200, , , , , /05 Source: BRSA 62

63 BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL) Current Assets Total Assets Shareholders' Equity /03 Source: TCMA 63

64 INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL) Total Revenues Operating Profit Net Profit 2,001 2,175 1,394 1, /03 Source: TCMA 64

65 BREAKDOWN OF BROKERAGE FIRMS REVENUES (MILLION TL) Brokerage Commissions Proprietary Trading Profits Corporate Finance Asset Management Others 2,175 2, ,394 1, ,332 1, , /03 Source: TCMA 65

66 BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL) Current Assets Total Assets Shareholders' Equity /03 Source: TCMA 66

67 INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL) Total Revenues Operating Profit Net Profit /03 Source: TCMA 67

68 BREAKDOWN OF ASSET MANAGEMENT COMPANIES REVENUES (MILLION TL) Fund Sales Financial Advisory Discretionary Asset Mgmt. Investment Trust Mgmt. Pension Fund Mgmt. Mutual Fund Mgmt /03 Source: TCMA 68

69 INVESTOR PROFILE

70 BREAKDOWN OF TOTAL SAVINGS (BILLION TL) 2,263 2, Equities 1, Fixed Income 1,610 1, Deposits ,053 1,245 1,453 1, /06 Source: BRSA, CRA, TCMA estimates 70

71 SAVINGS OF DOMESTIC INVESTORS 12% 14% 11% 11% 12% Equities 29% 28% 26% 25% 25% Fixed Income Deposits 59% 58% 63% 64% 63% /06 Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of 2017/06: TL 2,06 trillion 71

72 SAVINGS OF FOREIGN INVESTORS Equities 42% 46% 44% 45% 46% Fixed Income Deposits 39% 36% 30% 28% 27% 19% 18% 26% 27% 27% /06 Source: BRSA, CRA, TCMA estimates Total Foreign Inv. Savings as of 2017/06: TL 433 bn 72

73 NUMBER OF EQUITY INVESTORS Number of Equity Investors (thou.) /06 Domestic Investors 1, , , , ,024.8 Dom. Individuals Dom. Corporations Dom. Institutionals 1, , , , , Foreign Investors For. Individuals For. Corporations For. Institutionals Total 1, , , , ,034.2 Source: CRA 73

74 BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL) Privately Held Foreigners' Portfolio Domestics' Portfolio /06 Source: CRA, Borsa Istanbul 74

75 SHARE OF FOREIGN INVESTORS MCap Vol. 80% Share in Free Float Mcap (left) Share in Trading Volume (right) 32% 70% 28% 60% 24% 50% 20% 40% 16% 30% 12% 20% 8% 10% 4% 0% /06 0% Source: CRA, Borsa Istanbul 75

76 EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES 100% 90% 80% 70% 60% 50% 40% For. Other For. Corporation For. Individual Dom. Other Dom. Corporation Dom. Individual 30% 20% 10% 0% /06 Source: CRA Total equity portfolio as of 2017/06: TL 310 bn 76

77 BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% For. Institutional For. Corporation For. Individual Dom. Institutional Dom. Corporation Dom. Individual 0% /03 Source: TCMA 77

78 NUMBER OF CORPORATE BOND INVESTORS Number of Corporate Bond Investors /06 Domestic Investors 164, , ,690 96,771 86,555 Dom. Individuals 159, , ,798 93,217 83,472 Dom. Corporations 4,304 3,601 3,197 2,886 2,445 Dom. Institutionals Foreign Investors 1,672 1,384 1, For. Individuals 1,614 1,330 1, For. Corporations For. Institutionals Total 166, , ,756 97,476 87,131 Source: CRA 78

79 CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES 100% 90% 80% 70% 60% For. Other For. Corporation For. Individual 50% 40% 30% 20% 10% Dom. Other Dom. Corporation Dom. Individual 0% /06 Source: CRA Total corporate bond portfolio as of 2017/06: TL 54 bn. 79

80 MUTUAL FUND INVESTORS 60.0 Portfolio Size (bn. TL) Number of Investors (mn.) / Source: CRA 80

81 PENSION FUND INVESTORS Portfolio Size (bn. TL) Number of Investors (mn.) /06 - Source: PMC Portfolio size includes government contributions. 81

82 BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES (BROKERAGE FIRMS ONLY) 100% 90% 80% 70% 60% 50% 40% 30% For. Institutional For. Corporation For. Individual Dom. Institutional Dom. Corporation 20% 10% Dom. Individual 0% /03 Source: TCMA 82

83 FOREX TRADING VOLUME OF BROKERAGE FIRMS 100% For. Institutional 80% For. Corporation 60% For. Individual 40% Dom. Institutional Dom. Corporation 20% Dom. Individual 0% /03 Source: TCMA 83

84