Dear Customers, Esteemed Partners,

In the year 2017, which we began with the aim of adding value to the Turkish economy and maintaining our sustainable growth performance, we continue to proceed with sure steps to become one of the first banks that come to mind in all banking needs. As we leave the first half of the year behind, we are happy to further strengthen our position in the Turkish banking sector.

The financial results we have obtained in our fifth year in Turkey as Odeabank, which we established from the ground up in 2012 with the investment of the Lebanon based Bank Audi Group in Turkey, confirm the success of our growth strategy based on experienced human resources, innovation, technology and effective risk management principles.

Despite the fluctuations in foreign currency rates and the uncertainty in global markets, we have increased our net profits by 149% compared to the same period of last year, to 150.3 million TL. In the same period, our total loans reached 26.8 billion TL, deposits to 28.4 billion TL and our net assets reached 37.4 billion TL.

As Odeabank achieved this successful financial performance, its capital has shown a 5% growth, increasing from 3.4 billion TL at the end of December 2016 to 3.6 billion TL in June 2017. In parallel, total capital adequacy ratio has been raised from 14.96% in December 2016, to 15.98% at the end of June 2017. After our international bond issuance on August 1, 2017, our capital adequacy ratio has increased to 17.97%.

As a bank operating in 17 cities of Turkey with 52 branches and 1670 employees, we rank 8th among private banks in terms of deposits and 9th in terms of net assets, continuing our rapid growth performance. We aim to further increase the number of our branches and employees, focusing on large cities until the end of the year.

The positive developments in the global economy enable a steadier contribution of foreign demand. We think that expansionary steps taken with macro cautionary and fiscal policy tools are effective in keeping the growth outlook relatively solid. In light of these tendencies, we estimate that Turkey's GDP growth will be realized around a level of 4.5%. As Odeabank, we distinguish ourselves in the sector with the road map we create by foreseeing all these circumstances and our state-of-the-art technologic infrastructure.

In the first half of 2017, in order to make Odeabank Corporate and Commercial Banking services one of the leading and most preferred services in the banking sector, we have continued to track market conditions and customer needs closely and provide solutions that meet the demands of our customers.

In order to provide more support to SMEs that compose a substantial quantity among Turkish companies and facilitate their access to financing solutions to aid the revival of our economy and increase employment and exports, we have completed the process of our partnership with the Credit Guarantee Fund (KGF), placing utmost importance to stand by the SMEs. In a very short period of time, the cash loans we provided with the guarantee of KGF have exceeded the 1 billion TL threshold. We continue our support for the SMEs in each passing day.

In Retail Banking, we have focused on meeting the financial needs of our current and new customers obtained through effective product sales. We aim to provide benefits that reach more customers and make their lives easier with our “Private Card” product we have launched to the credit card market to provide differentiated service for varying needs of our customers. We have reached 1.9 billion TL in retail loans, increasing our market share to more than 1% in the second quarter of 2017. In the remaining period of 2017, we will increase our customer penetration in retail loans, providing customized offers. We will be present in the electronic commerce sector in 2017, with our Trink'O product that customers use for their purchases, continuing to stand by our current and new customers for all their needs.

Moreover, we distinguish ourselves not only with our contribution to the economy and the banking sector, but also to the social life of Turkey. With our support for basketball as “The Bank of Basketball”, we have become a part of a historic achievement in the THY Euroleague Final Four games oganized in Sinan Erdem Sports Hall in istanbul in May 19-21. Fenerbahçe Men's Basketball Team made all of us proud by winning the Final Four, the peak of EuroLeague games having a total of 2.88 billion viewers on TV and digital media.

In line with our EuroLeague and Final Four sponsorships, we had declared that we would donate 333 Euros for each 3 point shot scored during the Final Four, as the social responsibility portion of our support. With the funds corresponding to 78 three point shots scored during the Final Four, we have renovated the basketball court of Şair Nedim Park in Küçükçekmece, transforming it to a new court that provides opportunities for the basketball players of the future.

Meanwhile within the scope of our art platform O'Art, we have continued the 2017 exhibition calendar with the exhibition containing the works of one of the most important photographers of the world, Harold Feinstein, called “Harold Feinstein, The Legacy of a Photographer”. Moreover we are organizing the “O'Art Art Competition” for the second time this year, to support young artists.

On the other hand, we have added new ones to our international awards in the second quarter of 2017, receiving the award of excellence with our corporate web site in the Corporate Communications category in Communicator Awards.

We are dedicating all our efforts to provide more resources to the Turkish economy and “be in the major league” with targets that we have realized and will be realizing without sacrificing our principles. I offer my thanks to all our partners that support us in reaching these goals.

Best regards

Hüseyin Özkaya
General Manager and Board Member