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Investor Presentation

August 2021

Ziraat Bank – More Than a Bank

158 Years of

Banking Legacy

More Than 38 mn.

Customers

Strong Local and

International

Franchise

Fully State Owned

Well Diversified

Funding Base

Sustainable Growth

Customer Oriented

Balance Sheet

Sound Capital

Structure

Prudent Risk

Management

1

Total Assets Cash Loans Non-CashLoans

Deposits Equity

Ziraat Bank – Undisputed Leader of Turkish Banking Sector

Turkish Economy Total Assets 6,730

Cash Loans(1) 4,087

Securities 1,138

Total Deposits(1) 4,039

Shareholders’ equity 631

Net Profit 34

ROAE 11.3%

ROAA 1.1%

Capital Adequacy Ratio 17.8%

Q2 21

2012

#1

Rankings(2)

(1) Loans include accruals and the loans granted to banks, Deposits

include accruals, and the banks’ deposits, securities include accruals.(2) Rankings are among top 7 Banks. The banks are determined as of unconsolidated assets for June

2021 and include: Ziraat Bank, İş Bank, Garanti Bank, Akbank, Yapı Kredi, Halkbank and Vakıfbank

Source: BRSA, Publicly available Earnings Reports for peer banks

Turkish Banking Sector (June 21)

2

2019 2020

GDP Growth (%) 0.9 1.8

GDP Nominal (USD bn) 761 717

Unemployment (Annual %) 13.7 13.2

CPI (Annual,%) 11.8 14.6

Current Acc. Balance/GDP (%) 0.9 (5.2)

Budget Balance /GDP (%) (2.9) (3.4)

Germany

Subsidiaries

International Branches

Bosnia & Herzegovina

KazakhstanRussia

Azerbaijan

Turkmenistan

Uzbekistan

Montenegro

UK

Georgia

Bulgaria

Saudi Arabia

Turkish Rep. of

Northern CyprusIraq

Kosovo

Greece

Bahrain

Ziraat Bank – Ziraat Finance Group

Local Subsidiaries

Ziraat Katılım Bankası (Participation Banking)

Ziraat Yatırım (Securities Brokerage & Investment House)

Ziraat Portföy (Asset Management)

Ziraat GYO (Real Estate Investment Trust)

Ziraat Teknoloji (IT)

Ziraat GSYO (Venture Capital Investment Trust)

Overseas Subsidiaries

Ziraat Bank Int. AG (Germany)

Ziraat Bank BH. (Bosnia)

Ziraat Bank Montenegro

Ziraat Bank Azerbaycan

Ziraat Bank Moscow

KZI Bank (Kazakhstan)

Turkmen Turk JSC Bank

UT Bank (Uzbekistan)

Ziraat Bank Georgia

Overseas Branches

United Kingdom

Greece

Bulgaria

Iraq

Saudi Arabia

Kosovo

Bahrain

Turkish Republic of Northern Cyprus

Presence in

17 countries,

114 service points

3

Ziraat Bank – Local Subsidiaries

ParticipationBanking

Startedoperations in

2015

TL 67 bn of asset size

TL 43 bn of loan book

110 branches

SecuritiesBrokerage

Started

operations in

1997

Bonds / bills sector share -

rank:

9% - #3

Repo / reverserepo sector share

- rank:

24% - #1

AssetManagement

The market leader, total

volume of assets managed with a market share of

18%.

Serving 23 investment funds,

9 exchangetraded funds, 75

pension funds, 36 legal entity, 106

individualportfolios

.

IT

Established in

2001. 2nd largest

domestic

software

developer in

Turkey. Provides

full scale IT

solutions to Ziraat

Bank and its

domestic/foreign

partnerships.

Real EstateInvestment

Trust*

Founded in November 2016. Istanbul Finance Center premisesin the portfolio.Total portfolio

amount of TL 5 bn.

Finalized it’s IPO with 25% offering

in May 2021.

Venture CapitalInvestment

Trust

Founded in November 2018 with TL 750 mncapital with the

aim of investing inenterprises with

high growthpotential.

Asset size sectorshare - rank:

12% - #2

GSYO

* The 1,173 million TL shares representing 25% of Ziraat GYO (REIT)‘s equity was offered to public on 28-30 April 2021 and started to be traded on Borsa Istanbul A.Ş.

as of 6 May 2021.

As of 22 April 2020, the Bank has sold its insurance subsidiary Ziraat Sigorta A.Ş. and pension subsidiary Ziraat Hayat ve Emeklilik A.Ş. to Turkey Wealth Fund.

4

Description The Bank’s Risk Group Share (%)Total Assets

(TL mn)

Shareholders’ Equity

(TL mn)

Ziraat Katılım Bankası A.Ş. 100 67,373 3,894

Ziraat GYO* 81.1 7,159 7,040

Ziraat GSYO 100 1,007 1,005

Ziraat Yatırım Menkul Değerler A.Ş. 99.6 781 535

Ziraat Portföy Yönetimi A.Ş. 99.8 172 157

Ziraat Teknoloji A.Ş. 100 91 18

Ziraat Bank – Overseas Subsidiaries

Active in Germany for fifty-

seven years,supplies an

extensive array of retail and

corporate banking products and

services throughseven branches.

Startedoperations in

1997. The first entirely foreign-owned bank in

Bosnia-Herzegovina.

Serves corporate,small-business,

and retailcustomers through 32

branches/offices.

Opened its doors for business in

2015.Headquartered in

Montenegro’s capital Podgorica,

the bank has three branches.

Commencedoperations in2015. Mainlyserves the

corporate banking segment, ZiraatBank AzerbaijanASC conducts its

operations through its

headquarters in Baku and 6 branches.

Commencedoperations in

1993, focusingprimarily on the

corporate banking segment.

The country’s first foreign-owned

financialinstitution in

1993. The bank serves retail and

corporate customersthrough 8 branches.

Founded in 1993. Headquartered in

Ashgabat, provides services

from 6 offices.

Founded as Uzbekistan`s first

foreign capitalbank in 1993. 5 branches in Tashkent (2), Yunusabad,

Semerkand andFergana.

Active in both retail and

commercial banking.

Established in 2017 by

transforming theforeign branchesin Georgia to a new subsidiary.

Operates through7 branches

located in Batumi, Marneuli, Tblisi,

Tsereteli, Varketili, Gldani

and Kutaisi.

Ziraat Bank

Int. AGZiraat Bank

BH. Ziraat Bank

Azerbaycan

Ziraat Bank

MoscowKZI Bank Turkmen Turk

JSC Bank

Ziraat Bank

Uzbekistan

JSC

Ziraat Bank

Georgia

Ziraat Bank

Montenegro

5

Description (City/ Country)The Bank’s Risk Group

Share (%)

Total Assets

(TL mn)

Shareholders’

Equity (TL mn)

Ziraat Bank International A.G. Frankfurt / GERMANY 100 16,140 2,782

Ziraat Bank BH d.d. Sarajevo / BOSNIA HERZEGOVINA 100 6,237 647

Kazakhstan Ziraat Int. Bank Almaty / KAZAKHSTAN 99.6 2,376 707

Ziraat Bank Azerbaycan ASC Baku/ AZERBAIJAN 100 1,780 380

Ziraat Bank Uzbekistan JSC Tashkent/ UZBEKISTAN 100 1,021 249

Ziraat Bank (Moscow) JSC Moscow / RUSSIA 99.9 912 437

Ziraat Bank Montenegro AD Podgorica / MONTENEGRO 100 723 174

Ziraat Bank Georgia Tbilisi/ GEORGIA 100 379 158

Ziraat Bank – Organizational Structure

• New CEO and two Board Members assigned at the General Assembly

in March 2021.

• New organizational design for operational excellence

Board

Internal Systems Group

CEO

Retail Banking EVP

Corporate Banking EVP

Banking Operations and Corporate Communication EVP

Credit Risk Monitoring and Liquidation EVP

Payment Systems and Loan Processes EVP

Credit Allocation and Management EVP

Treasury Management and International Banking Group

Human Resources Group

Interior Operations Group

6

New Corporate Internet Branch

Ziraat Mobile For Corporate

Clients

OmniChannel Experiance• Standardization of interface and

transaction flows

• Interaction between channels

Money withdrawal by using QR

code

Enhancing mobile transactions

Multiple language mobile branch

New Data Center

Ziraat Bank – Digital Journey

AI-Powered Customer

Analytics

AI-Supported Mobile

Assistant

Digital Ecosystem

Integration

Global Banking

Software

Global Data Center

Mobile branch

App for devices not

compatible with iOS

and Android

Flexible limits

Transaction limits

defined specifically

to a segment or a

customer

Ziraat Tablet

iOS

Android

«E – Devlet»

Integration

Product

applications

through

channels

POS Platform

Bankkart

• Website

• Mobile

• POS Website

Corporate Website

Ziraat Assistant

Money withdrawal by

using QR code

New Banking Software

New Mobile Branch

Internet and Mobile

Branch Assistant

Loan access through

Internet and Mobile

Branch

Robotic Processes

Automation

Web Based New

Banking Software

Cyber Security

Center

Payment Methods

with QR

7

– Efficiency

8

2018 2019 2020 Q1 21 Q2 21

9392

9089

8

49

57

31

Other Automatic Pay. Mobile Internet Branch ATM

Banking Transaction

Channel Distribution (%)

Non-Branch Channels Usage (%)

Increased transaction limits for ATM and non-branch channels

Mutual use of ATMs among public banks for cost efficiency.

Full scale digital mobilization to ensure operational continuity

during the Covid-19 outbreak and full lockdown.

Gradual customer acquisition and credit card market share

gain strategy.

Increase in market share of credit card turnover:

From 3.4% in 2016 to 10.1% in Q2 21.

Unique Service Delivery

Largest ATM

network:

7,257 ATMs

13.9% market share

Active Digital

Banking

Customers:

16 mn

22% improvement

in unit transaction

costs in 2020

Internet Banking

Customers:

26 mn

New service and product offering to digital customers.

93

AI-Powered Customer

Analytics

AI-Supported Mobile

Assistant

Digital Ecosystem

Integration

Global Banking

Software

Global Data Center

Digitalization Agenda

Key Ratios

ROAA(1) 0.4

ROAE(1) 3.7

Cost / Income Ratio(2) 52.4

NIM (cum.) (3) 3.4

Loans(4)(5)/Deposits 90.0

Loans/Assets 61.6

Securities/Assets 24.7

NPL 2.2

Stage III Coverage(5) 76.8

CAR 16.6

# of

Branches(6) 1,752

Employees 24,489

ATMs 7,257

TL mn USD mn

Total Assets 1,035,727 120,123

Loans(4) 638,125 74,010

Securities 256,324 29,728

Deposits 702,590 81,486

Funds Borrowed 44,215 5,128

Interbank Money Market 122,840 14,247

Shareholder`s Equity 91,179 10,575

Ziraat Bank – Financial Snapshot- Q2 2021

Balance Sheet

P&L TL mn USD mn

Interest Income 23,328 2,706

Interest Expense 16,068 1,864

Net Interest Income 7,260 842

Net Fees&Commissions 1,173 136

OPEX(7) 3,521 408

Net Operating Profit 1,301 151

Net Profit 778 90

(1) Average total assets and average shareholders’ equity represent weekly averages

(2) İncludes dividend income

(3) Average interest earning assets represent weekly averages.

(4) Performing Loans (7) Including HR expenses

(5) Intermediated loans of public funds are excluded

(6) Including foreign branches

9

67.8%

17.9%

8.8%

5.5%

Deposits

Non Deposit

Funds

Shareholder’s

Equity

Others

1,036

61.6%

24.7%

10.0%

3.7%

Loans(1)

Securities

Reserve Req. &

Liquid Assets

1,036

Others

Ziraat Bank – Assets/Liabilities

ASSETS LIABILITIES

(TL bn)

(1) Performing Loans

Assets

15.4%Cash Loans

16.0%

Deposits

17.4%

Market Penetration

Asset : 3.8% (QoQ), 9.9% (YtD)

Loan : 3.9% (QoQ), 8.8% (YtD)

Deposit : 7.3% (QoQ), 11.5% (YtD)

10

Growth Rates

Q2 21

52%

35%

13%

EUR

USD

TL

Only bank to extend

government subsidized

agro loans

63%Market Share

37%

52%

10%

Q2 21

GPL Housing Credit Card and Other

24%

54%

21%

Energy Infrastructure Other

25%

37%

38%

Corporate

SME

Retail

74%

26%

TL FX

Ziraat Bank – Lending

Total Loans(1) (TL bn.)

11

19%

21%

8%

9%

15%

9%

Breakdown of Retail Loans(2) (TL bn.)

638

Breakdown of Cash Loans

Project Finance Loans

USD 7.6 bn cash

Agricultural Loans (TL bn.)

95 166USD 0.3 bn non-cash

(1) Performing Loans

(2) Accruals are excluded

• Of business loans,

• Figures do not include loans extended through

foreign branches

• Accruals, intermediated loans of public funds

and foreign branch lending are excluded

Housing Loans

Market Share

31%

SME 4%

Corporate 96%

Corporate 22%Retail 32%

SME 46%

Agriculture

Manufacturing

Trade

Service

Finance

Construction

Energy

Tourism 3%

Other

19%

21%

8%

8%

11%

16%

6%

8%

58%

22%

20%

Retail SME Corporate

90.0

94.2

Q2 21

Ziraat Sector

67%

33%

Q2 21

Time Demand

90%

10%

Other DepositsPublic Deposits

Ziraat Bank – Funding

48%52%

TL FX

Total Deposits (TL bn,)

703

12

Breakdown of Deposits

66%

24%

10%

Q2 21

Money Markets Funds borrowed Bonds issued

185

Non-Deposit Funds (TL bn.) Loan to Deposit(1) (%)

(1) Performing Loans/Total Deposit

Intermediated loans of public funds are excluded

(2) Deposit banks

(2)

USD 10.8 bnTotal External Funding

Making up 51% of Total

Non-Deposit Funds

589.7

48.4

14.3

Q2 21

3.7

2.2

Q2 21

Sector Ziraat

Ziraat Bank – Asset Quality

NPL (%)

13

Total Coverage(3)148.0%

Stage III Coverage 69.2%76.8%

Cost of Risk(2) (%)

(1) Includes loans excluded from segment classification,

intermediated loans from public funds and overseas branch lending

(2) CoR: Expected Credit Loss-Reversals /Average Loan Amount (Annualized figure)

(3) (S1 + S2 + S3 provisions)/ NPL

(4) Includes payment holidays during the COVID 19 outbreak.

Loan Classification (TL bn)

Stage III

Stage II

Stage I

NPL Ratios by Segment

Corporate 2.0%

SME 3.0%

Retail 1.2%

0.6

Restructured Loans(4)

in Total Loans: 8.0%Stage II Loans/Total Loans

7.6%

TL 3.5 bn

Total Free Provisions

(No additional free provision

in H1 2021)

47%

32%

12%

9%Other(1)

RetailCorporate

SME

Total NPL by Segment

2,638

778

Q2 20 Q2 21

Depreciation

PersonnelExpenses

IT&Comms.

TaxSDIF Premium

Promotions

Rental;1%

Other

16%1.499 1.297

1.930 2.224

Q2 20 Q2 21

HR OPEX

16.6

15.5

13.4

Q2 21

CARTier-1CET-1

Ziraat – Profitability & Capitalization

BRSA Target 12.0%

Regulatory

Minimum 8.0%

Net Fees&Commissions (TL mn)

14

Capital Ratios (%) Cost / Income Ratio(1) (%)Net Profit (TL mn)

345

1,173

Q2 20 Q2 21

Payment Systems

NonCash Loans

Money Transfer

Insurance

Other13%

25%

12%

21%

29%

(1) Includes dividend income

OPEX (TL mn)

52.4%

37%

11%4%

20%

7%

4%

APPENDIX

15

– Balance Sheet Summary

16

TL mn 2018 2019 2020 Q1 21 Q2 21% Change

QoQ

% Change

YtD

CASH AND CASH EQUIVALENTS 46,237 57,389 91,038 107,324 103,620 -3.5% 13.8%

SECURITIES 95,374 130,335 225,621 237,017 256,324 8.1% 13.6%

LOANS 379,331 447,983 600,660 627,557 652,413 4.0% 8.6%

-Gross NPL 7,460 12,690 13,895 13,539 14,288 5.5% 2.8%

-Expected Credit Loss (-) 8,386 13,011 18,757 19,360 20,627 6.5% 10.0%

OTHERS 23,673 26,435 29,816 25,958 23,369 -10.0% -21.6%

TOTAL ASSETS 537,156 649,756 942,601 997,856 1,035,727 3.8% 9.9%

DEPOSITS 331,066 447,251 629,874 654,822 702,590 7.3% 11.5%

FUNDS BORROWED 34,172 34,528 36,950 38,887 44,215 13.7% 19.7%

INTERBANK MONEY MARKETS 68,351 49,275 116,401 143,113 122,840 -14.2% 5.5%

PROVISIONS 2,832 3,819 7,059 7,251 7,264 0.2% 2.9%

OTHERS 43,334 44,818 59,039 67,316 67,639 0.5% 14.6%

TOTAL LIABILITIES 479,755 579,691 849,323 911,389 944,548 3.6% 11.2%

SHAREHOLDERS’ EQUITY 57,401 70,065 93,278 86,467 91,179 5.4% -2.3%

– Income Statement Summary

Source: Unconsolidated Financial Statements

(1) OPEX includes personnel expenses and other provision expenses17

TL mn 2018 2019 2020 Q2 20 Q1 21 Q2 21% Chg

QoQ

% Chg

YoY

INTEREST INCOME 53,054 65,602 69,476 16,182 20,329 23,328 14.8% 44.2%

-From Loans 41,028 52,764 52,330 12,497 15,420 16,937 9.8% 35.5%

-From Securities 10,977 11,966 16,696 3,624 4,615 5,993 29.9% 65.4%

INTEREST EXPENSE 31,138 40,290 34,862 6,538 13,940 16,068 15.3% 145.8%

-On Deposits 19,675 27,989 22,812 4,682 9,082 10,287 13.3% 119.7%

NET INTEREST INCOME 21,916 25,312 34,615 9,644 6,389 7,260 13.6% -24.7%

NET FEES & COMMISSIONS 2,638 3,590 3,093 345 1,043 1,173 12.5% 240.0%

OTHER OPERATING INCOME 1,434 1,614 5,182 854 1,178 929 -21.1% 8.8%

EXPECTED CREDIT LOSS 4,702 6,313 10,691 3,207 1,501 2,035 35.6% -36.5%

-Stage 1 Provisions 477 594 1,340 632 64 111 73.4% -82.4%

-Stage 2 Provisions 2,081 1,298 5,505 1,812 696 886 27.3% -51.1%

-Stage 3 Provisions 2,143 4,421 3,846 762 742 1,038 39.9% 36.2%

OTHER PROVISION EXPENSES 17 112 2,648 1,106 74 39 -47.3% -96.5%

OPEX(1) 7,691 9,797 12,092 3,429 3,264 3,521 7.9% 2.7%

NET OPERATING PROFIT 10,034 7,648 10,834 3,514 1,220 1,301 6.6% -63.0%

NET PROFIT 7,961 6,187 7,825 2,638 962 778 -19.1% -70.5%

(1) Average total assets represent weekly averages

(2) Average shareholders’ equity represent weekly averages

(3) İncludes dividend income

(4) Average interest earning assets represent weekly averages

– Key Financial Ratios

(5) Performing Loans

(6) Intermediated loans of public funds are excluded

(7) Annualized figure

(8) Leverage = (Assets/Shareholders’ Equity)-1

18(9) Including foreign branches

(%) 2018 2019 Q1 20 Q2 20 Q3 20 2020 Q1 21 Q2 21

ROAA(1) 1.6 1.1 1.1 1.1 1.0 1.0 0.4 0.4

ROAE(2) 15.2 10.1 10.5 10.8 10.0 9.7 4.2 3.7

Cost / Income Ratio(3) 34.3 40.8 36.5 33.0 35.2 33.3 53.9 52.4

NIM (cum.) (4) 5.0 5.0 6.4 6.1 5.8 5.0 3.3 3.4

Loans(5)(6)/Deposits 110.6 96.0 94.3 95.5 90.7 92.3 92.9 90.0

Loans/Assets 68.9 67.1 67.3 68.4 63.9 62.2 61.5 61.6

Securities/Assets 17.8 20.1 21.3 21.3 23.8 23.9 23.8 24.7

NPL 2.0 2.8 2.7 2.3 2.1 2.3 2.2 2.2

Stage III Coverage(6) 73.9 66.4 69.7 72.9 76.1 77.0 78.7 76.8

CoR 1.2 1.3 1.1(7) 1.5(7) 1.4(7) 1.2 0.4(7) 0.6(7)

CAR 14.8 17.0 16.4 18.5 18.2 18.2 17.7 16.6

Leverage (8) 8.4 8.3 9.3 8.3 9.9 9.1 10.5 10.4

# of

Branches(9) 1,773 1,758 1,757 1,758 1,758 1,752 1,752 1,752

Employees 24,647 24,563 24.642 24,480 24,350 24,673 24,560 24,489

ATMs(9) 7,155 7,239 7,253 7,257 7,293 7,274 7,264 7,257

– Non-Deposit Funding

19

April 2021; USD 293 mn & EUR 873 mn; LIBOR+ 250 & EURIBOR+ 225 bps

p.a.;367 days of maturity

• IBRD loans; 2010&2013; USD 200 mn, USD 67 mn and USD 300 mn

• EIB loans; 2012-2017; 7 loans; each EUR 100 mn and IPARD EUR 100 mn

• KfW loan; 2014; EUR 150 mn

• AFD loan; 2014; EUR 100 mn

• CEB loan; 2014; EUR 100 mn

Syndication

IFIs

• USD 1.7 bn Eurobonds outstanding• April 2017; USD 600 mn RegS/144A; 5.125% coupon rate; 5y

• September 2017; USD 500 mn RegS/144A; 5.125% coupon rate; 6y

• February 2021; USD 600mn RegS/144A; 5.375% coupon rate; 5y (Sustainability Bond)

• USD 200 mn 5y securitised funding

• April 2019; EUR 1.4 bn AT-1 issuance under GMTN Programme

FC Bonds/Bills

– Corporate Social Responsibility

Ziraat Bank conducts enduring social responsibility projects whose aims are to protect cultural values, to contribute to the communal heritage,

and to uphold traditions and customs.

Launched in 2018. To increase interest in

agriculture among youth, teach agricultural

production and investment, train educated

and conscious young farmers, give young

people an entrepreneurial awareness in

the field of agriculture

Ziraat Bank Young Farmers Academy

Ziraat Bank Banking Museum

Established in 1981. Turkey’s first museum

devoted to banking. Occupying the ceremonial

hall of the Bank’s original headquarters building

in Ankara, the museum provides a look at the

Bank’s 158-year history.

Both in keeping with its efforts to support sports in

general and in recognition of their contributions

both to social wellbeing and the Bank’s public face,

Ziraat Bank served as the Turkish Cup name

sponsor.

Ziraat Bank the Turkish Cup name sponsor

Ziraat Bank Sports Club

Ziraat Bank has been supporting volleyball

through the Ziraat Bank Sports Club established

in 1981.

The Ziraat Bank Art Collection

The Ziraat Bank art collection consists of

more than 2,500 works, the majority of

which are oil paintings but which

also include watercolors, gouaches,

pastels, prints, ceramics, and sculptures.

20

DISCLAIMER

The information contained in this presentation has been prepared by T.C. Ziraat Bankası A.S. for informational purposes only. Although the information in t

his presentation has been obtained from sources which we believe to be reliable, we cannot guarantee that the information is without fault or entirely accur

ate. The information contained in this presentation has not been independently verified. No representation or warranty express or implied is made as to, an

d no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The information an

d opinions in this presentation are provided as at the date of this presentation and are subject to change without notice. T.C. Ziraat Bankası A.S. does not

accept any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or otherwise arising in connec

tion with this presentation. This presentation cannot be interpreted as an advice to anyone and is also strictly confidential and may not be reproduced, distr

ibuted or published for any purpose.

For further information please contact

Financial Institutions and Investor Relations Department

Eski Büyükdere Cad. No: 39 B Blok, 6. Kat

Maslak-İstanbul/Turkey

Phone: (+90) 212 363 11 91

E-mail: investorrelations@ziraatbank.com.tr

www.ziraatbank.com.tr