Message From General Manager

QNB Finansbank signed its name under significant achievements in the name of its customers and shareholders.

Esteemed Shareholders and Members of the Board,

During the first quarter of 2018, we as QNB Finansbank has been fortunate enough to sustain a strong growth trend, just like the Turkish economy in general.

As of 31st March 2018, the total assets of the bank have reached up to TRY 135 Billion 574 Million with an increase rate of 8% compared to the year end. Compared to year-end 2017; performing loans have reached TRY 86 Billion 469 Million with 6% increase, while customer deposits have attained a total of TRY 68 Billion 343 Million with 5% increase.

Compared to the same period of the last year, 1st Quarter of 2018 has brought about 20% increase as regards net interest income amounting to TRY 1 Billion 615 Million and 15% increase pertaining to net charges and commissions income amounting to TRY 474 Million. QNB Finansbank's net profit for the same period has been realized as TRY 529 Million from a before tax profit figure of TRY 669 Million. Our total equity has reached up to TRY 12 Billion 735 Million with 5% increase

In the 1st Quarter of 2018 QNB Finansbank bank has been able to access a wider spectrum of investors, while differentiating the funding resources through the bank's resilient financial structure and credit notes. We have sustained our growth in corporate credits during the same period, too. Both in corporate banking and project finance, as well as in SMEs banking, we are proud to state that our bank has continued to contribute to the Turkish economy.

At the end of 2017 we obtained a securitization credit from Credit Suisse and Deutsche Bank amounting to USD 575 Million. This securitization credit, which was granted based on a credit score even higher than our bank's credit score, indicates the trust of international markets to the Turkish economy and our bank has constituted the longest-term credit with the highest amount obtained from the mentioned banking groups by our bank. We will continue to use this credit in financing the real sector, SMEs and the Turkish economy in general.

We expect the growth trend for credits in the banking sector to normalize, after its surge witnessed in 2017. However, the decrease in the acceleration is foreseen to be limited due to utilization of the remaining limit in KGF (Credit Guarantee Fund) as well as re-financing of the due credits. As it has been the case during the last couple of years, we expect the sector growth to stem mainly from corporate credits. In line with capital movements, macroeconomic trends and financial outcomes will be defining the banking sector.

We aim to crown our financial success with corporate responsibility projects so that we can continue to contribute to the society in 2018, too. We want to reach out to thousands of children within the context of our "Small Hands Big Dreams" project, this year as well, by standing by them in their preparation to the future.

The children will continue to be at the heart of our corporate responsibility projects. In the coming period, we will launch new projects enabling our youth and children to represent and cherish their creative and analytic skills. In cooperation with Microsoft Turkey and Habitat Foundation, our "Tiny Fingers Coding Future" project is being carried on without any slow down. Our target is to reach out to 20 thousand children.

QNB Finansbank has remained on top of the list of financial institutions university students wish to start working most, according to "The Most Popular Companies Investigation" realized by Realta Consultancy. We are happy to be on the top of the mentioned list three times within the last three years.

Our target is to attain a higher than the sector rate growth in all areas in 2018 as we have done so far during the past years. We foresee that the sector growth will continue to mostly come from the corporate field in 2018. Incentives, grants and precautions announced for giving boost to export highlight and support this view of us. Our appetite in corporate credits will continue. While our competitive stance pertaining to corporate banking and project finance is continuing, we will also be extending our market share for international trade. One of our main targets will be taking over cash flow of multinational firms with the indispensable strength we derive from our main shareholder QNB.

I would like to thank to my fellow colleagues, our customers, all of our strategic business partners and correspondent banks.

Sincerely,

Temel Güzeloğlu
CEO