Agenda What does “Islamic banking” stand for?

Performance drive and future upside

• Category

• Actions taken

• Future upside

• Performance

• 2007

• 2008

• Target 25 new branches p.a.
• Target non-cash vs cash of 2:1 by end 2010
• Diversify funding further
• Business partnerships
• Enhanced cross-sell
• Disposal of non-core assets
• Benefits from training
• Gulf market expansion
• Correspondent banking network

• Branch roll-out (Turkey)
• Bahrain branch
• Non-cash lending (↑)
• Retail loans (↑)
• Employee incentives

• Growth

• Retail / SME loans (↑)
• Non-cash loans (↑)
• Centralised commission
• Risk management focus

• Asset / income quality

• Fee income3 %

• NPL ratio4

• 79%

• 88%

• 4.2%

• 4.8%

• Total cash loans1 (1yr)

• Non-cash loans/Cash Loans1

• 29%

• 37%

• 61%

• %80

• Loans / deposits2

• 108%

• 106%

• Long-term target RoAE of 25%

• Performance - RoAE

• 19.9%

• 16.7%

• Focus on competitive advantages

• Gross loans – Annual increase rates
• Interbank Loans and Deposits not included.

• (3) Fee & commission income (% of Financing income )
• (4) Total impaired receivables / total gross loans

Strategy

• Capitalise on advanced retail / SME franchise

• Grow local customer base through branch roll-out

• Leverage existing customer base through enhanced product range / offering

• Enhance non-cash business

• Improve operational efficiency through cost control initiatives

• Capture trade flows from overseas locations

• Become Turkey’s leading participation bank and one of Turkey’s top 10 banks

Strategy in International Banking

• Key highlights

• Key strategic goal

• Means of achieving strategic goals

• Raised US$200m through a syndicated commodity Murabaha transaction for Kuveyt Turk in 2006
• Arranged US$240m of international syndications since 2006
• Correspondent banking relationship with around 1,000 financial institutions in 96 countries

• Increase market share in international syndicated facilities
• Leverage off KFH relationship and Bahrain branch to drive growth through increased access to Gulf investors
• Expand German representative office into full branch operation

• Focus on increasing quality and size of international syndications
• Expand treasury function
• Increase international services to retail and corporate customers

• Products

• Dubai branch expected to be operational
• Germany representative office awarded Financial Services branch license in 2009
• Expected to add value on fund mobilisation from Turkish and Muslim population.
• Further expand correspondent bank network in line with demand for trade finance activities

• International expansion

• International expansion and access to Gulf investors key to growing ahead of the market

• Thank you

• Murat Çetinkaya
• EVP, Kuwait Turkish Participation Bank

• Let’s move together further ahead to explore
• new peaks and horizons of Islamic banking