Garanti Bank

As a universal bank with leading presence in all its business lines, Garanti serves over 8 million customers in corporate, commercial, SME, and consumer segments, offering fully integrated financial services through its 9 financial subsidiaries, which are engaged in payment systems, pension, leasing, factoring, brokerage and asset management.

Committed to providing exceptional services to its customers, Garanti operates an expanding distribution network comprising 730 branches including five foreign branches and four international representative offices, about 2,600 ATMs, an award winning call center and an internet & mobile bank utilizing its state-of-the-art technology. Garanti supports its extensive branch network with centralized operations, exceptional data warehousing and management reporting systems, and the efficient use of alternative delivery channels.

Over its 62-year history, Garanti has been acknowledged worldwide for its strength and tradition in providing high quality offerings. Through its dynamic business approach and its commitment to technological innovation, Garanti has developed groundbreaking practices for increased efficiencies and accomplished many firsts in the banking scene. Its wide product variety combined with custom-tailored solutions is the key competitive advantage in its success in becoming Turkey's largest lender, which provides more than $44 billion in cash and non-cash loans. Among Garanti's main distinguishing features are its sound asset quality, which draws on the advanced risk management systems, well established risk culture, and strong collection capability. Prudent management and risk approach practices have earned the Bank strong brand recognition, naming it the "Best Bank in Turkey".

Jointly owned by Dogus Holding and GE Capital, Garanti is publicly traded in the ISE with a free float of 49%. Committed to corporate governance best practices, Garanti strives to contribute the maximum added value to all its stakeholders in a consistent manner.

Believing that its corporate mission involves more than banking, Garanti is dedicated to sustainable banking practices and to a long-term strategy of creating value to the communities in which it operates. This commitment is reflected in its day-to-day operations and in the numerous projects in which it is involved, including culture, the arts, education, sports and the environment.

*consolidated assets as of the end of 2008.

With innovative products and superior customer-oriented services, Garanti will continue to "make a difference" in the lives of individuals in the current period and beyond.

Activities in 2008

In 2008, Garanti Bank strengthened its well-structured balance sheet with successful decision-making. The Bank's cash loans grew more than YTL 12 billion to YTL 53 billion, making Garanti the largest contributor to the economy among the banks. Garanti's deposits increased significantly above the sector average and the Bank became the second largest private bank in Turkey in terms of Turkish lira deposit base while maintaining its leading position in the sector with regard to foreign currency deposits. With the help of rapid expansion in its branch network in the last 2 years, Garanti's deposit base rose 33% over year-end 2007 to YTL 58 billion. Increasing its ordinary banking income by 22% in 2008 and solidifying its lead in this area, Garanti Bank also became the most profitable private bank in 2008 with a net income of YTL 1.9 billion.

Future Plans

Garanti will emerge from this difficult period of global economic crisis as a strong and ambitious competitor in the banking sector. Despite courageous intervention, trillions of dollars worth of government aid packages and capital injections, the global crisis worsened in the second half of 2008 and is, by no means, over. Indeed, the complex problems of the international finance arena have spread to other areas of the global economy, leading it to the edge of a worldwide recession. During this dangerous period, it is essential to act more cautiously and manage risks effectively.

Garanti prepared its business plans to be resilient during the arduous days ahead. It will continue to work closely with its customers to support the local economy while keeping its balance sheet liquid and its capital strong. From top management to branch personnel, Garanti will continue to work carefully to limit the effects of the weakening economic outlook on asset quality. By focusing on managing costs and profitability, it will improve the efficiency of the newly opened branches.

Turkey and the Turkish banking sector have experienced even more difficult times in the past decade. Garanti has always emerged stronger from these periods of economic volatility. In 2009, by working for the benefit of all Garanti stakeholders – employees, customers, shareholders and business partners –Garanti's standing in the Turkish banking sector will continue to rise.