Garanti Bank International N.V

GarantiBank International N.V. (GBI), headquartered in Amsterdam, was incorporated in December 1990 and started its activities in April 1991. GarantiBank International N.V. is fully owned by Garanti Bank. In addition to the Netherlands, GBI has also been active in Germany, Switzerland, Romania, Turkey, Ukraine, Kazakhstan and China through its branches and representations.

GBI positions itself as a "global boutique" and delivers fast, accurate, tailor-made, innovative and country-specific financial solutions to its clients globally. Trade finance, private banking, structured finance and retail banking are the areas where GBI delivers global financial solutions.

Forfaiting and loan trading, transactional commodity finance and structured trade finance products are covered under Trade Finance division and attract clients globally. In Trade Finance, our clients are not only SME's and corporates but also other financial institutions. GBI prides itself by delivering seamless and superior execution and by creating value around global trade flows.

Within the framework of Private Banking, global financial products and services are offered to high net worth individual and institutional clients with high level of service quality and product sophistication. The services are delivered at three forms: Discretionary Asset Management, Advisory Services and Direct Execution. The product range include a broad range of products such as; foreign exchange, fixed income, equities, derivative and structured products of all major developed and developing countries in addition to the traditional Turkish financial instruments.

In Structured Finance division, GBI targets project finance, Islamic finance and ship finance products globally and aims to maximize the synergy opportunities internally.

From 2001 to present, GBI has played an active role in Romania, Russia, Kazakhstan, Ukraine and Azerbaijan serving financial and non-financial institutions via direct and structured transactions. Turkey remains one of the core markets of GBI.

GBI has a Long Term Deposits Rating of 'A3' from Moody's Investors Service. This rating, which is 7 notches higher than Turkish sovereign rating, reflects GBI's success in its core activities as well as its strong financial fundamentals, asset quality, reliable funding resources, sustainable and rising profitability, product development capability and increasing volume of emerging market transactions.

2007 Activities

• The total assets of the Bank reached US$ 5 billion with a growth of 19%. The number of employees was 613 at the end of 2007. Also a significant net profit growth of 30% was achieved despite adverse global financial environment.
• As GBI had no exposure to sub-prime or related markets, its asset quality has not been effected by the financial market turmoil during 2007; NPL ratio remained at a very low level, below 0.1%.
• New representative offices were established in Ukraine, China and Kazakhstan. These offices will contribute to GBI's business development and risk management in the regions. A substantial growth was realized in Romania reaching a network of 35 retail branches with 409 employees.
• In 2007, the total volume of the Bank's trade finance activities reached US$ 7.6 billion. The increase is due to higher levels of activity at all fronts. Especially origination and distribution of assets in transactional commodity finance, structured trade finance, bilateral and syndicated loans and forfaiting segments were the main drivers of revenue generation for GBI.
• For the first time, GBI arranged a syndicated loan facility in the amount of US$ 50 million and acted as one of the bookrunners together with ICICI Bank UK plc. The syndicated deal which was arranged for International Bank of Azerbaijan, Moscow attracted 14 investors from 11 countries.
• The Private Banking division made a serious contribution to the total revenues of the Bank. The geographical diversification of customers continued in 2007 to include new corporations and high net-worth individuals from Europe, Middle East, Russia and CIS countries. The total client assets under management grew by 52% to reach US$ 1.7 billion.
• Structured Finance Division has been established as a separate business line to develop and pursue opportunities in project finance, Islamic finance and shipping finance areas.

2007 Activities in Romania

• Regional expansion in Romania continued, GBI reached 35 branches in Romania.
• Romania's first cross border bonus facility credit card 'Bonus Card' and "Internet Banking" have been launched.
• SME and retail lines of businesses have been added to the Bank's portfolio, loan volume grew 38% yoy to EUR171 million.
• Core banking system Globus has been replaced with TGB core banking system by Garanti Technology in line with GBI Romania's strategy of becoming a universal bank.

Future Plans

GBI will continue to implement its strategy of diversified growth at a sustainable rate in 2008 while maintaining its high asset quality. As a "global boutique", the Bank shall move on adding value to its esteemed trade finance, private banking, structured finance and retail banking clientele. GBI aims double-digit growth in all of its business lines.

Note: GBI's financial figures are prepared according to the local accounting principles.