Turkish Capital Markets - TSPB · International Forum for Investor Education/Asia Chapter founding member since 2010. • International Organization of Securities Commissions (IOSCO)

Turkish Capital Markets October 2017

26

2

Turkish Economy at a Glance

Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile

CONTENTS

3

18

44

5

68

TURKISH ECONOMY AT A GLANCE

KEY MACRO-ECONOMIC INDICATORS

4

2012 2013 2014 2015 2016

Population and Employment

Population (mn.) 75.6 76.7 77.7 78.7 79.8

Unemployment (average, %) 8.4 9.0 9.9 10.3 10.9

National Accouts

GDP (bn. $) 871.0 950.0 935.0 861.0 857.0

GDP per capita ($) 11,588 12,480 12,112 11,014 10,807

GDP, real growth (%) 4.8 8.5 5.2 6.1 2.9

External Balance

Exports (FOB, bn. $) 152.5 151.8 157.6 143.8 142.6

Imports (CIF, bn. $) 236.5 251.7 242.2 207.2 198.6

Foreign Trade Balance (bn. $) -84.1 -99.9 -84.6 -63.4 -56.1

Current Account Balance (bn. $) -48.0 -63.6 -43.6 -32.1 -32.6

Current Account Balance/GDP (%) -5.5 -6.7 -4.7 -3.7 -3.8

Foreign Direct Investment (net, bn. $) 9.5 9.3 5.8 12.5 9.1

CBRT Reserves (including gold, bn. $) 119.2 131.0 127.3 110.5 106.1

External Debt (bn. $) 339.5 389.8 401.9 396.1 404.2

Prices

CPI (y-o-y, %) 6.2 7.4 8.2 8.8 8.5

PPI (y-o-y, %) 2.5 7.0 5.4 5.7 9.9

Fiscal Balance

Primary Balance/GDP (%) 1.2 1.7 1.3 1.3 0.8

Budget Balance/GDP (%) -1.9 -1.0 -1.1 -1.0 -1.1

General Government Debt/GDP (%) 32.6 31.3 28.7 27.5 28.3

Exchange Rates

USD (year-end) 1.78 2.13 2.33 2.92 3.52

Euro (year-end) 2.35 2.93 2.83 3.18 3.71

Source: CBRT, Treasury, TurkStat

STRUCTURE OF THE TURKISH CAPITAL MARKETS

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 introduced.

6

REGULATORY STRUCTURE OF THE FINANCIAL MARKETS

7

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

CAPITAL MARKET INSTITUTIONS IN TURKEY

8

Rating Co.

Ind. Audit Co.

Settlement & Custody Bank (Takasbank)

Capital Markets Board

Banks Brokerage Firms

Inv. Trusts

Asset Mgmt. Co.

TCMA(SRO)

Borsa Istanbul

Central Registry Agency

Public Co.

Listed Co.

Licensing and Training Agency

CAPITAL MARKETS BOARD

9

• 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 Primary markets,

o Secondary markets,

o Investment services.

BORSA ISTANBUL

10

• Borsa Istanbul, formerly named as Istanbul Stock

Exchange, was established in 1985.

• The exchange was demutualised in 2013.

• 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 2013. Technological infrastructure is

provided by NASDAQ OMX.

• European Investment Bank acquired a 10% share in 2015.

BORSA ISTANBUL

11

• The main markets and the traded securities on Borsa Istanbul

are:

o Equity Market: Shares, rights coupons, ETFs, warrants, certificates.

o Debt Securities Market: Government bonds, corporate bonds, asset

backed securities, Islamic bonds, repo-reverse repo transactions,

Turkish eurobonds, money market.

o 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.

o Precious Metals and Diamond Market: Gold, silver, platinum and

palladium.

TAKASBANK (ISTANBUL SETTLEMENT AND CUSTODY BANK)

12

• Takasbank was established in 1988 as a department of Borsa Istanbul. It

was incorporated as a separate company in 1992 and became a non-

deposit taking bank in 1995.

• Takasbank is:

o The clearing and settlement centre for Borsa Istanbul,

o The central counterparty (CCP) for Borsa Istanbul Futures & Options

Market,

o 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.

MERKEZI KAYIT ISTANBUL – CSD OF TURKEY

13

• 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.

INVESTOR COMPENSATION CENTRE

14

• Investors’ Protection Fund, which covered equity settlement

obligations, was established in 2001.

• 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.

ACTIVITIES OF INTERMEDIARIES

15

• Equity Trading

• Leveraged FX trading

• Public Offering

• Asset Management

• Investment Consultancy

• Fixed Income Trading

• Derivatives Trading (exc. equity-linked

products for banks) BANKS

BROKERAGE

FIRMS

TYPES OF BROKERAGE FIRMS

16

Market

Makers

Execution

Brokers

Introducing

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


• reception of orders and

transfer them to other brokers


ASSET MANAGEMENT COMPANIES

17

Portfolio Management Companies

Real Estate


Venture Capital


• 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.

• May establish only venture

capital investment funds

• Mn. capital required varies btw. TL 1 million and TL 5 million depending on AUM.

TURKISH CAPITAL MARKETS ASSOCIATION

TCMA

19

• Founded in April 2001.

• 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 225 members as of September 2017; 82

brokerage firms, 45 banks, 50 portfolio management

companies, 9 securities investment trusts, 31 real estate

investment trusts, and 8 venture capital investment trusts.

MEMBERS

20

102 97 95 88 82

40 43 4443

45

40 4652

50

4647 48

48

2013 2014 2015 2016 2017/09

Investment Trusts Asset Management Firms Banks Brokerage Firms

225231232

142

226

AIMS

21

• 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.

FUNCTIONS

22

• 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.

ORGANISATION

23

Chairman(Board of Directors)

Secretary General

Assistant Secretary General

DisciplineCommittee

Board of Auditors

Research & Statistics

Information Technologies

Corporate Communications

TrainingCompliance & Surveillance

Legal Affairs

Human Resources,

Administrative & Financial Affairs


Membership Affairs


INTERNATIONAL MEMBERSHIPS

24

• Asia Securities Forum (ASF) member since 2009.

• Federation of Euro-Asian Stock Exchanges (FEAS) affiliate member

since 2009.

• OECD International Network on Financial Education (INFE) affiliate

member since 2015.

• International Council of Securities Associations (ICSA) member since

2006.

• International Forum for Investor Education (IFIE) member since 2009.

International Forum for Investor Education/Asia Chapter founding

member since 2010.

• International Organization of Securities Commissions (IOSCO) affiliate

member since 2003.

• Islamic Financial Services Board (IFSB) observer member since 2016.

PARTICIPATIONS

25

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

TURKISH CAPITAL MARKETS

BIST-100 INDEX & TRADING VOLUME

27

Source: Borsa Istanbul

0

2,000

4,000

6,000

8,000

10,000

12,000

0

20,000

40,000

60,000

80,000

100,000

120,000

01-1

2

04-1

2

08-1

2

12-1

2

04-1

3

08-1

3

12-1

3

04-1

4

07-1

4

11-1

4

03-1

5

07-1

5

11-1

5

03-1

6

06-1

6

10-1

6

02-1

7

06-1

7

Trading Volume BIST-100 (TL)

Point Mn. TL

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

28


504 627 555 614 795

2013 2014 2015 2016 2017/09

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

29


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016

Technology

Financials

Services

Industrials

CONCENTRATION IN THE EQUITY MARKET (MCAP)

30


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016

1-10 11-25 26-50 51-100 100+

No. of Equities

DOMESTIC MARKET CAPITALIZATION (2016, BILLION $)

31

Source: WFE WFE definition excluding investment funds, ETFs, unit trusts, unlisted companies,

holding companies with a mere business of holding shares on the exchange.

7,779

5,0624,104

19,573

158

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

NYSENasdaq OMX

TokyoShanghai

London…Euronext

ShenzhenHong Kong

TMXDeutscheBSE IndiaNSE India

SwissAustralia

South KoreaOMX Nordic

JSETaiwan

BrazilSpain

SingaporeMoscow

Saudi ArabiaThailand

IndonesiaMalaysia

MexicoPhilippinesOslo Bors

Tel AvivSantiago

Borsa…Qatar

WarsawAbu Dhabi

Rank: 32

MARKET CAPITALIZATION/GDP (2016)

32

Source: WFE, IMF

1013%329%221%213%

20%

0% 40% 80% 120% 160% 200%

Hong KongJSE

SingaporeSwiss

TaiwanTMX

TokyoMalaysia

OMX NordicThailandAustralia

NYSELuxembourgSouth Korea

EuronextSantiago

QatarPhilippines

London GroupSaudi Arabia

Tel AvivBSE IndiaNSE IndiaMauritius

BahrainOslo Bors

SpainCasablanca

MoscowDeutsche

IrishNew Zealand

IndonesiaBrazilMaltaLima

AmmanNasdaq OMX

MuscatColombia

Abu DhabiShanghai

HoChiMinhMexico

WarsawDubai

ShenzhenWiener

KazakhstanColombo

Borsa Istanbul Rank: 51

NUMBER OF SECURITIES IN THE EQUITY MARKET

33


Equities: BIST Main+BIST Star+REITs+Venture Capital Investment Trusts

Other Equities: BIST Emerging Companies, Watchlist,

Pre-market Trading Platform

352 348 341 327 330

56 65 67 69 65

30 24 22 18 18

328

640846

1,071930

2013 2014 2015 2016 2017/09

Warrants+Certificate

ETF+Inv. Trusts

Other Equities

Equities

NUMBER OF LISTED COMPANIES (2016)

34

Source: WFE

5,8213,5413,5063,419

381

0 500 1,000 1,500 2,000 2,500 3,000

BSE IndiaTokyoSpainTMX

Nasdaq OMXLondon Group

NYSEAustralia

South KoreaHong KongShenzhenNSE IndiaShanghaiEuronext

OMX NordicTaiwan

MalaysiaWarsaw

SingaporeThailand

DeutscheIndonesia

Tel AvivBorsa Istanbul

JSEBrazil

TehranHoChiMinh

SantiagoColombo

Rank: 24

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

35


817873

1,023 1,014 1,012

2013 2014 2015 2016 2017/09

EQUITY TRADING VOLUME (2016, BILLION $)

36

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.

31,944

19,737

13,683

11,673

331

0 2,000 4,000 6,000 8,000 10,000

Nasdaq OMX

NYSE

BATS US

Shenzhen

BATS Chi-x…

Shanghai

Tokyo

Euronext

London Group

South Korea

Hong Kong

Deutsche

TMX

Swiss

Australia

Spain

OMX Nordic

NSE India

Brazil

Taiwan

JSE

Borsa Istanbul

Thailand

Saudi Arabia

Moscow

Rank: 22

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2016)

37

Source: WFE

411%363%210%

0% 40% 80% 120% 160% 200%

Nasdaq OMXShenzhen

Borsa IstanbulShanghai

TaipeiSouth Korea

TokyoNYSESpain

EuronextThailand

DeutscheSwiss

AustraliaBrazil

Saudi ArabiaLondon Group

OMX NordicTaiwan

TMXEgypt

Oslo BorsHong KongNSE India

JSEMoscow

HoChiMinhIrish

DubaiAthens

WarsawNew Zealand

Mexico

Rank: 3

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION TL)

38

Source: Takasbank

3,023

6,296 5,5657,423

9,949

2013 2014 2015 2016 2017/09

SHORT SELLING IN BORSA ISTANBUL

39


95 138 178 170 125

12%

16%

17%17%

12%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

4

8

12

16

20

24

28

32

36

40

44

48

52

56

60

64

68

72

76

80

84

88

92

96

100

104

108

112

116

120

124

128

132

136

140

144

148

152

156

160

164

168

172

176

180

184

188

2013 2014 2015 2016 2017/09

Short Selling Volume (bn. TL)

Share in Total Volume

MARGIN TRADING

40

Source: TCMA

1,160 1,148 1,507 1,465 1,777

10,417

9,914

9,585 9,6339,558

2013 2014 2015 2016 2017/06

Outstanding Loan Size (mn. TL) No. of Contracts

FUTURES TRADING VOLUME OF BORSA ISTANBUL

41

Source: Borsa Istanbul, TurkDex Security expiry transactions are included. .

415 435 567 580 560

53

59

88

100 95

2013 2014 2015 2016 2017/09

Futures Trading Volume (bn. TL)

No. of Contracts (million)

1,025,444

107,96766,946

190

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

CME Group

ICE (Europe)

Deutsche Börse

ASX SFE Derivatives

LME-London

Montreal

BM&FBOVESPA

Shanghai FE

Tokyo SE

Dalian CE-China

Zhengzhou CE

Korea

ICE (US)

Hong Kong

CFFEX- China

NSE-India

Taiwan FE

Nasdaq OMX

Moscow

Euronext

MCX-India

JSE

Spain

BSE India

Malasysia DE

Borsa Istanbul

TRADING VOLUME IN FUTURES MARKETS (2016, BILLION $)

42

Source: WFE

Rank: 26

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

43

Source: WFE

299

436464

519

605

2013 2014 2015 2016 2017/08

NUMBER OF LISTED CORPORATE BONDS (2016)

44

Source: WFE

8,901

7,276

5,383

5,311

519

0 1,000 2,000 3,000 4,000 5,000

London Group

South Korea

OMX Nordic

BSE India

Euronext

Irish

NSE India

Shanghai

Spain

Wiener

Oslo Bors

JSE

Buenos Aires

Taipei

Moscow

Swiss

Hong Kong

Tel Aviv

Colombia

Borsa Istanbul

Shenzhen

Warsaw

Lima

Brazil

Kazakhstan

Rank: 20

INVESTMENT INSTITUTIONS

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

46

Source: Borsa Istanbul Excluding Central Bank and Takasbank.

1,802

1,141942

1,125

748

143

117

117

184

144

2013 2014 2015 2016 2017/09

Brokerage Firms

Banks

1,635

1,945

1,257

1,059

1,635

1,308

892

REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

47

Source: Borsa Istanbul Excluding Central Bank and Takasbank.

11,508

13,22914,700

13,546

5,303

1,271

1,397

1,614

1,331

865

2013 2014 2015 2016 2017/09

Brokerage Firms Banks

12,779

14,626

16,315

14,877

6,168

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

48


1,6341,746

2,045 2,027 2,025

2013 2014 2015 2016 2017/09

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

49

Source: Borsa Istanbul, TurkDex

745

865

1,131 1,1541,106

855

46

15

2013 2014 2015 2016 2017/09

Banks

Brokerage Firms

988659886598865988659886598865988659886598865988659886598865

830869

1,135 1,160 1,121

FOREX TRADING VOLUME (BILLION TL)

50

Source: TCMA

2,9704,353

9,546

12,245

3,519

1,986

3,340

7,459

9,604

2,946

2013 2014 2015 2016 2017/08

Liquidity Provider

Client

4,956

6,466

21,850

17,005

7,693

CONCENTRATION IN TRADING VOLUMES (2017/09)

51

Source: Borsa Istanbul, TCMA

Note: Forex trading volume data as of 2017/08 period

57%

73%68% 69%

26%

20%20% 22%

18%7% 11% 9%

Equity Fixed Income Futures Forex

51+ 21-50 11-20 1-10No. of IntermediariesNo. of Intermediaries

TOP 10 MEMBERS IN THE MARKETS (2017/09)

52


Note: Forex trading volume data is available as of August 2017.

Equity Market Futures Market

1 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 9% 1 IS YATIRIM MENKUL DEGERLER A.S. 15%

2 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 2 GARANTI YATIRIM MENKUL DEGERLER A.S. 11%

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 AK YATIRIM MENKUL DEGERLER A.S. 6%

5 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 5% 5 DENIZ YATIRIM MENKUL KIYMETLER A.S. 6%

6 FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 5% 6 FINANS YATIRIM MENKUL DEGERLER A.S. 5%

7 A1 CAPITAL YATIRIM MENKUL DEĞERLER A.Ş. 4% 7 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 4%

8 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4% 8 A1 CAPITAL MENKUL DEGERLER A.S. 4%

9 MERRILL LYNCH YATIRIM BANK A.Ş. 4% 9 GEDIK YATIRIM MENKUL DEGERLER A.S. 3%

10 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4% 10 CREDIT SUISSE ISTANBUL MENKUL DEGERLER A.S. 3%

Total (bn. TL) 2,025 Total (bn. TL) 1,121

Fixed Income Market Forex Market

1 AKBANK T.A.Ş. 15% 1 GCM MENKUL KIYMETLER A.Ş. 14%

2 HSBC BANK A.Ş. 11% 2 IŞIK MENKUL DEĞERLER A.Ş. 9%

3 TÜRKİYE GARANTİ BANKASI A.Ş. 10% 3 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 9%

4 TÜRK EKONOMİ BANKASI A.Ş. 7% 4 INVEST-AZ YATIRIM MENKUL DEĞERLER A.Ş. 8%

5 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 5 AK YATIRIM MENKUL DEĞERLER A.Ş. 8%

6 YAPI VE KREDİ BANKASI A.Ş. 6% 6 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 7%

7 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 5% 7 INTEGRAL YATIRIM MENKUL DEĞERLER A.Ş. 5%

8 TÜRKİYE İŞ BANKASI A.Ş. 5% 8 DESTEK YATIRIM MENKUL DEĞERLER A.Ş. 4%

9 FİNANSBANK A.Ş. 5% 9 VENBEY YATIRIM MENKUL DEĞERLER A.Ş. 3%

10 CITIBANK A.Ş. 4% 10 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 3%

Total (bn. TL) 892 Total (bn. TL) 6,466

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

53

Source: TCMA

284

465

608702

430

43

63

34

90

48

34

83

87

72

47

21

14

6

2

21

14

11

15

7

2013 2014 2015 2016 2017/06

Privatization

M&A

IPO&SPO-Equities

Corporate Actions

Other Consultancy

Bond Issuance

746

644

409

883

537

INITIAL PUBLIC OFFERINGS

54


1,381 714 119 343 1,254

19

13

6

2

3

2013 2014 2015 2016 2017/09

IPO Volume (mn. TL) No. of IPOs

CORPORATE DEBT SECURITIES ISSUANCE

55


56 66 80 90 92

330

517

621

758837

2013 2014 2015 2016 2017/09

Size of Corporate Bonds Issued (bn. TL)

No. of Corporate Bonds Issued

INSTITUTIONAL INVESTMENTS (BILLION TL)

56


30 33 3744

53

2638

48

58 70

0.3

0.3

0.3

0.3

0.3

18

22

21

26

26

1.0

1.5

1.3

1.2

1.6

2013 2014 2015 2016 2017/06

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds

Mutual Funds

130

76

94

108

151

ASSET MANAGEMENT BY BROKERAGE FIRMS

57

Source: TCMA

4,366 5,375 1,267 1,341 1,559

2,753 2,923

2,649

3,709

4,093

2013 2014 2015 2016 2017/06

Assets Under Management (mn. TL)

No. of Investors

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

58

Source: CMB, TCMA

64,828 81,848 100,995 122,081 139,645

2,1682,277

2,688

3,082

3,306

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2013 2014 2015 2016 2017/06

Assets Under Management (mn. TL)

No. of Investors

BROKERAGE FIRMS’ BRANCH NETWORK

59

Source: TCMA

6,950 7,071 5,763 6,512 6,480

153 150

323

310 297

71 67

76

59 37

2013 2014 2015 2016 2017/06

Bank Branches Branches Rep. Offices

6,814

6,162

7,2887,1746,881

BROKERAGE FIRMS’ EMPLOYEES

60

Source: TCMA

5,4805,657

6,6326,478

4,797

2013 2014 2015 2016 2017/06

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

61

Source: TCMA

615

698720 708

2014 2015 2016 2017/06

BANKS’ EMPLOYEES

62

Source: BRSA

214,226 216,912 217,504 210,886 210,369

2013 2014 2015 2016 2017/06

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

63

Source: TCMA

13.014.1 14.2

20.1

22.2

14.015.1 15.3

21.2

23.2

3.3 3.7 4.0 4.3 4.3

2013 2014 2015 2016 2017/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

64

Source: TCMA

1,394

1,587

2,0012,175

1,211

226281 301 332 320

529

372433 483

387

2013 2014 2015 2016 2017/06

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

65

Source: TCMA

8951,017

1,3321,511

723

5278

89

106

156

133

136

170

164

93

257

308

360

358

217

2013 2014 2015 2016 2017/06

Brokerage Commissions Proprietary Trading Profits Corporate Finance

Asset Management Others

1,394

1,587

1,211

2,175

2,001

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

66

Source: TCMA

373

472

571 564

410

507

609 603

365

456

552 551

2014 2015 2016 2017/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

67

Source: TCMA

230

296

347

196

65

88105

5970

91111

62

2014 2015 2016 2017/06

Total Revenues Operating Profit Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

68

Source: TCMA

134

177

211

126

69

91

99

55

1

4

4

1

25

22

20

9

2014 2015 2016 2017/06

Discretionary Asset Mgmt. Fund Sales

Financial Advisory Investment Trust Mgmt.

Pension Fund Mgmt. Mutual Fund Mgmt.

229

294

337

193

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

70

Source: BRSA, CRA, TCMA estimates

9461,053

1,2451,453 1,578

500

555

574

627

683

195

249

226

247

310

2013 2014 2015 2016 2017/06

Equities

Fixed Income

Deposits

1,856

2,045

2,327

1,641

2,571

SAVINGS OF DOMESTIC INVESTORS

71


Total Domestic Inv. Savings as of

2017/06: TL 2.14 trillion

66% 66% 67% 69% 68%

29% 28% 28% 27% 26%

5% 6% 5% 5% 5%

2013 2014 2015 2016 2017/06

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

72


Total Foreign Inv. Savings as of

2017/06: TL 435 bn

19% 18%26% 27% 27%

39%36%

30% 28% 27%

42%46% 44% 45% 46%

2013 2014 2015 2016 2017/06

Equities

Fixed Income

Deposits

NUMBER OF EQUITY INVESTORS

73

(thou.) 2013 2014 2015 2016 2017/06

Domestic Investors 1,100.9 1,065.5 1,049.2 1,031.3 1,024.8

1,095.2 1,059.6 1,043.5 1,025.9 1,019.5

5.1 5.2 5.0 4.7 4.6

0.6 0.7 0.7 0.7 0.7

Foreign Investors 9.6 9.9 9.8 9.5 9.5

For. Individuals 6.0 6.2 6.2 6.2 6.1

For. Corporations 1.3 1.4 1.5 1.4 1.4

For. Institutionals 2.3 2.3 2.1 1.9 1.9

Total 1,110.4 1,075.4 1,059.0 1,040.8 1,034.2

Dom. Individuals

Dom. Corporations

Dom. Institutionals

Number of Equity Investors

Source: CRA

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

74

Source: CRA, Borsa Istanbul

73 90 85 89 109

121159 141 157

202

310

378

329361

450

2013 2014 2015 2016 2017/06

Privately Held Foreigners' Portfolio Domestics' Portfolio

504

627

555

606

760

SHARE OF FOREIGN INVESTORS

75

Source: CRA, Borsa Istanbul

0%

4%

8%

12%

16%

20%

24%

28%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2013 2014 2015 2016 2017/06

Share in Free Float Mcap (left) Share in Trading Volume (right)

Vol.MCap

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

76

Source: CRA Total equity portfolio as of 2017/06: TL 310 bn

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017/06

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES

77

Source: TCMA

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

NUMBER OF CORPORATE BOND INVESTORS

78

2013 2014 2015 2016 2017/06

Domestic Investors 164,886 136,441 135,690 96,771 86,555

159,613 132,132 131,798 93,217 83,472

4,304 3,601 3,197 2,886 2,445

969 708 695 668 638

Foreign Investors 1,672 1,384 1,066 705 576

For. Individuals 1,614 1,330 1,034 677 546

For. Corporations 38 36 24 25 27

For. Institutionals 20 18 8 3 3

Total 166,558 137,825 136,756 97,476 87,131

Dom. Corporations

Source: CRA

Dom. Institutionals

Number of Corporate Bond Investors

Dom. Individuals

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

79

Source: CRA Total corporate bond portfolio as of 2017/06: TL 54 bn.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017/06

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

MUTUAL FUND INVESTORS

80

Source: CRA

31.0 36.2 38.9 47.1 50.3

2.772.75

2.92 2.91

3.03

2.5

2.6

2.7

2.8

2.9

3.0

3.1

-

10.0

20.0

30.0

40.0

50.0

60.0

2013 2014 2015 2016 2017/06

Portfolio Size (bn. TL)

Number of Investors (mn.)

PENSION FUND INVESTORS

81

Source: PMC

PP: Private pension schemes AE: Auto-enrolment

Portfolio size includes government contributions.

26.0

37.6

48.0

60.8 60.7

1.2

4.1

5.1

6.0

6.6

PP 6.8

AEP 2.5

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2013 2014 2015 2016 2017/06

Auto-Enrolment Portfolio Size (bn. TL)

Pension Portfolio Size (bn. TL)

Number of PP Investors (mn.)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES (BROKERAGE FIRMS ONLY)

82

Source: TCMA

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

FOREX TRADING VOLUME OF BROKERAGE FIRMS

83

Source: TCMA

0%

20%

40%

60%

80%

100%

2013 2014 2015 2016 2017/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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Turkish Capital Markets - TSPB · International Forum for Investor Education/Asia Chapter founding member since 2010. • International Organization of Securities Commissions (IOSCO)