JCR Eurasia Rating has evaluated Aktif Yatırım Bankası A.S. in a high-level investment category and affirmed ratings of ‘AA(Trk)’ on the Long Term National Scale and as ‘BBB-’ on the Long Term International Foreign and Local Currency Scales along with a ‘

JCR-Eurasia Rating has evaluated Aktif Yatırım Bankası A.Ş. in a high-level investment category and affirmed its ratings on the Long Term National Scale as ‘AA (Trk)’ and as ‘A-1+ (Trk)’ on the Short Term National Scale along with a ‘Stable’ outlook. Long Term International and International Local Local Currency notes have been affirmed at the country ceiling of “BBB- “. Other notes and details of the ratings are given in the table below:

Long Term International Foreign Currency

:

BBB- /(Stable Outlook)

Long Term International Local Currency

:

BBB- /(Stable Outlook)

Long Term National Local Rating

:

AA (Trk)/(Stable Outlook)

Short Term International Foreign Currency

:

A-3 /(Stable Outlook)

Short Term International Local Currency

:

A-3 /(Stable Outlook)

Short Term National Local Rating

:

A-1+(Trk)/(Stable Outlook)

Sponsored Support

:

2

Stand-Alone

:

AB

As the largest privately owned investment bank, Aktif Yatırım Bankası A.Ş., displayed a growth performance above that of the sector average in line with the dynamic re-structuring efforts initiated in 2007 and maintained the 23rd ranking among 47 banks in the sector as of FYE2015 based on asset size. The bank which has the largest alternative delivery channels through a “New Generation Banking” business model and branchless banking strategies in excess of 16,000 service points has turned into a real personal platform through an innovative and diversified product portfolio. It is anticipated that the Bank will generate rising portions of revenues from niche segments with minimal competition on which it has focused in accordance with its vision.

The Bank which is not legally entitled to collect deposits owing to its status as an investment bank, sustained its uninterrupted and rapid growth by accessing alternative funding resources including bank bonds based on its activities in the capital markets, asset backed securities and asset lease certificates for the purposes of project financing in line with Islamic principles (Sukuk). The pressure on profit and profitability performance was maintained as a significant portion of the Bank’s resources was short-term and the rising levels of dependence on capital markets and the need for roll-over funding and its subsequent limiting effects on liquidity management was maintained along with the high level of operational expenses throughout FY2015. As a result, its below banking sector average performance was maintained with respect to the return on assets and equity.

The significant improvement recorded in the NPL ratio in comparison to the previous year to below the Turkish Banking sector average levels owing to the collections from the non-performing loans portfolio and the partial enhancement recorded in the capital adequacy ratio throughout FY2015 despite high growth which is in line with the legal regulations amidst its below sector average trend represent the principal factors in the assignment of the Long Term National Rating as “AA (Trk)”. The relatively high level of total core capital among total equity indicates an ability of the Bank’s capital to absorb potential losses whilst the Bank’s current level of capitalization stands at a level that could withstand losses from contingent risks.

The high level of risk concentration in corporate loans and the comparatively high level of loans allocated to Group companies limits operational effectiveness, whilst initiatives to reduce the Bank’s credit risk concentration and level of operational expenses will be kept under close review.

JCR Eurasia Rating is of the opinion that, regardless of the support provided by the shareholders and at the systemic level, the Bank has reached a level of experience and facilities to manage its obligations, taking into consideration its growth projections, capability to access alternative funding resources, internal equity generation capacity and ability to provide innovative products as long as operations are sustained and market circumstances are maintained in their current form. In this regard, Aktif Yatırım Bankası has been assigned a Sponsor Support grade of (2) and a Stand-Alone grade of (AB) based on JCR Eurasia Rating’s notation scale taking into consideration the willingness of the Çalık Group containing the Bank, to lend operational support and capital if necessary.

For more information regarding the rating results you may visit our internet site http://www.jcrer.com.tr or contact our analyst Mr. Şevket GÜLEÇ.

JCR EURASIA RATING

Administrative Board