FINANSBANK ANNOUNCES ITS 2004 YEAR-END ...

FINANSBANK ANNOUNCES ITS 2004 YEAR-END
UNCONSOLIDATED FINANCIAL RESULTS
18.02.2005
All financial results in this press release are unconsolidated inflation adjusted figures
prepared according to the Turkish Generally Accepted Accounting Principles (TRGAAP).
HIGHLIGHTS OF 2004
• In 2004, Finansbank posted YTL403.7 million in profit before tax, provisions and
monetary loss and YTL191.5 million in net income,
• Finansbank's cash loan book grew by 73% reaching YTL5,190.7 million
• Finansbank's shareholders' equity reached YTL1,047.0 million by a 23% real rise
• Finansbank's total assets amounted to YTL8,630.1 million, expanding by 32% in
real terms.
Comments from the GM, Sinan Sahinbas
Our strong operating performance was accompanied with quite favorable macroeconomic
environment in 2004. We are going through a rare transformation phase in our economy.
After years of high inflation, we finally started seeing single digit inflation rates and a
parallel drop in the interest rates, enabling us to make longer term projections. This new
environment requires every bank in Turkey to adopt its operations by focusing more on
customers and efficiency, and we believe that our bank is one of the leaders of the
Turkish banking sector in this respect. Moreover, we have left behind a very successful
year, as our equity climbed over YTL1.0 billion and assets grew by 23% in real terms.
During the year, we continued to invest in our business as we expanded our branch
network to 170 branches by the end of 2004 and hired 1,523 new personnel bringing the
total number of employees to 5,469. These investments immediately delivered results, as
we grew our cash loan book by 73% in real terms, totaling YTL5,190.7 million. We
believe through our innovative product development and proactive approach to our
customers' needs, we will further extend our strong performance to 2005.
Strong earnings generation...
As a result of strong operating performance on top of favorable macroeconomic
environment, Finansbank increased its net income to YTL191.5 million in 2004, an 8%
year-on-year real increase. Despite the contraction in trading and foreign exchange
income, 64% real year-on-year increase in net interest income totaling YTL530.5 million
lifted up the bottom line along with strong fee and commission income generation. Net
fees and commission income reached YTL189.6 million in 2004, a 67% real increase.
Impressive loan growth
Especially through its focus on small and mid-size enterprises and retail segments,
Finansbank achieved an impressive real loan growth of 73% compared to the previous
year and total loans reached YTL5,190.7 million. This strong growth in loans also exhibits
the switch in Finansbank's balance sheet from securities to loans. The bank's loans-toassets
ratio climbed to 60% in 2004 from 46% in 2003, while securities-to-assets ratio
dropped to 15% in 2004 from 29% in 2003.
High TL deposits growth

Finansbank's total deposits climbed to YTL5,091.7 million by a 23% real increase at the
end of 2004 compared to 2003. The striking point was that the growth originated mainly
from the TL customer deposits, which recorded an 85% real rise compared to the
previous year. In the meantime, the foreign currency denominated customer deposits
increased by 24% in US$ terms.
This strong growth is mainly attributable to Finansbank's growing and efficient branch
network and the increase in the number of its customers, not only in the retail segment
but in the commercial segment as well. Finansbank expanded its branch network by 21
branches in 2004, which are mainly focused on the SME and retail segments, bringing
the total to 170.
Card Finans' success continues
Finansbank's total number of credit cards reached 2 million at the end of 2004 with 300K
new additions in the last quarter of 2004. Accordingly, the annual increase in the number
of credit cards amounted to an impressive 800K and Finansbank's market share in the
number of credit cards reached 7.6% from 6.0% at the end of 2003. On top of the
success of Card Finans brand promotion, strong relations with the merchants were
another factor behind this successful performance.
Solid equity...
The strong earnings generation further strengthened Finansbank's shareholders' equity.
The bank's equity expanded to YTL1,047.0 million by a 23% year-on-year real growth.
The capital adequacy ratio ("CAR") stands at 14.07% at the end of 2004. Please note
that Finansbank obtained a ten-year subordinated debt of US$200 million from
international markets in the last quarter of 2004, reinforcing its CAR.
For further information please contact:
Murat Borekci, Investor
Relations
FINANSBANK A.S.
BALANCE SHEET (Inflation
adjusted)
ASSETS
www.finansbank.com.tr
Tel E-mail
+90 212 318 5983 investor.relations@finansbank.com.tr
December
31, 2004
YTL in
Thousands
December
31,2004
USD in
Thousands
December
31, 2003
YTL in
Thousands
December
31, 2003
USD in
Thousands
Cash and due from banks 131.892 100.793 128.172 97.950
Short term placements 602.693 460.581 289.943 221.576
Reserve deposits 567.682 433.826 374.889 286.492
Portfolio available for sale 1.286.122 982.862 843.919 644.928
Portfolio held to maturity 0 0 1.067.905 816.100

Loans, net 5.190.730 3.966.788 2.997.605 2.290.788
Accrued interest income 146.229 111.749 228.506 174.626
Equity participations 362.597 277.099 366.488 280.072
Premises and equipment 207.617 158.662 154.447 118.029
Other assets 134.535 102.813 73.481 56.156
TOTAL ASSETS 8.630.097 6.595.173 6.525.355 4.986.717
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits 5.091.704 3.891.111 4.149.507 3.171.079
Demand-TL 380.945 291.120 287.546 219.744
Time-TL 1.696.613 1.296.562 833.195 636.733
Foreign currency 2.751.372 2.102.615 2.617.197 2.000.078
Interbank deposits 262.774 200.813 411.569 314.524
Funds borrowed from banks 1.415.243 1.081.537 1.084.237 828.581
Accrued interest expense 129.725 99.137 43.710 33.403
Repo obligations 193.012 147.501 38.370 29.323
Other liabilities 491.681 375.747 355.581 271.737
Total liabilities 7.321.365 5.595.032 5.671.405 4.334.123
Subordinated Loans 261.710 200.000 0 0
Share capital 590.000 450.882 425.220 324.956
Retained earnings 265.462 202.868 251.647 192.310
Income for the year 191.560 146.391 177.083 135.328
Total shareholders' equity 1.047.022 800.141 853.950 652.594
TOTAL LIABILITIES AND 8.630.097 6.595.173 6.525.355 4.986.717
SHAREHOLDERS' EQUITY
Exchange Rate US $ / TL 1.308.548 1.308.548
FINANSBANK A.S.
INCOME STATEMENT
(Inflation adjusted)
December December December December

INTEREST INCOME
31,2004 31,2004 31,2003 31,2003
YTL in
Thousands
USD in
Thousands
YTL in
Thousands
USD in
Thousands
Interest on loans 775.549 592.679 458.979 350.755
Interest on investment
securities
219.881 168.034 356.190 272.203
Interest on deposits in banks 48.018 36.696 43.508 33.249
Total interest income 1.043.448 797.409 858.677 656.207
INTEREST EXPENSE
Interest on deposits ( 467.436 ) ( 357.217 ) ( 493.073 ) ( 376.809 )
Interest on funds borrowed
from banks
( 45.472 ) ( 34.750 ) ( 41.615 ) ( 31.802 )
Total interest expense ( 512.908 ) ( 391.967 ) ( 534.688 ) ( 408.611 )
Net interest income 530.540 405.442 323.989 247.596
PROVISION FOR POSSIBLE
LOAN LOSSES
Net Interest Income after
provision
( 72.276 ) ( 55.234 ) ( 103.058 ) ( 78.758 )
458.264 350.208 220.931 168.838
NON-INTEREST INCOME
Income from banking
services,net
189.640 144.924 113.876 87.025
Capital market gain, net ( 12.244 ) ( 9.357 ) 62.032 47.405
Income from equity
participations
21.021 16.064 32.300 24.684
Foreign exchange gain/(loss),
net
( 3.929 ) ( 3.003 ) 69.594 53.184
Other income, net 58.861 44.982 108.050 82.574
Total non-interest income 253.349 193.610 385.852 294.872
NON-INTEREST EXPENSE
Salaries and employee benefits ( 156.781 ) ( 119.813 ) ( 114.130 ) ( 87.219 )
General and administrative
expenses
( 166.059 ) ( 126.903 ) ( 122.442 ) ( 93.571 )
Depreciation and amortization ( 42.707 ) ( 32.637 ) ( 43.362 ) ( 33.138 )
Taxes other than on income ( 14.614 ) ( 11.168 ) ( 29.207 ) ( 22.320 )
Total non-interest expense ( 380.161 ) ( 290.521 ) ( 309.141 ) ( 236.248 )
Income before taxation 331.452 253.297 297.642 227.462

TAXATION CHARGE ( 63.366 ) ( 48.424 ) ( 87.713 ) ( 67.031 )
Current ( 95.560 ) ( 73.027 ) ( 54.080 ) ( 41.329 )
Deferred tax 32.194 24.603 ( 33.633 ) ( 25.702 )
Net income before monetary
loss
Loss on net monetary
position
268.086 204.873 209.929 160.431
( 76.526 ) ( 58.482 ) ( 32.846 ) ( 25.103 )
NET INCOME 191.560 146.391 177.083 135.328
0 0 0 0