Convenience translation into english

CONVENIENCE TRANSLATION INTO ENGLISH OF PUBLICLY AVAILABLE

FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE IN SECTION SIX/II
AKBANK T.A.Ş.

UNCONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY - 31 MARCH 2004

PAGE
SECTION FOUR

INFORMATION RELATED TO FINANCIAL POSITION

1. Strategy of using financial instruments and explanations on foreign currency transactions 16

2. Capital adequacy ratio 17

3. Credit risk 19

4. Market risk 20

5. Currency risk 21

6. Interest rate risk 22

7. Liquidity risk 25

SECTION FIVE

INFORMATION AND DISCLOSURES RELATED TO FINANCIAL STATEMENTS
I. Information and disclosures related to assets 27

II. Information and disclosures related to liabilities 36

III. Information and disclosures related to income statement 41

IV. Information and disclosures related to off-balance sheet accounts 44

V. Information and disclosures related to statement of cash flows 46

VI. Information and disclosures related to Bank’s risk group 47

VII. Explanation related to inflation accounting 50

VIII. Information and disclosures related to subsequent events 52

SECTION SIX

OTHER EXPLANATIONS AND NOTES
I. Other explanations related to Bank’s operations 53

II. Explanation added for convenience translation into English 53

SECTION SEVEN

EXPLANATIONS ON AUDITOR’S REVIEW REPORT
I. Explanation on review report 54


SECTION ONE

GENERAL INFORMATION

I. Bank’s ServiceS and NATURE of OperationS
Akbank T.A.Ş. (“the Bank” or “Akbank”) was established on 30 January 1948 as a private commercial bank, in accordance to the decision of the Council of Ministers, No. 3/6710; it was authorised to perform all economic, financial and commercial activities which are allowed by the laws of Turkish Republic. As of 31 March 2004, the Bank had 620 branches dispersed throughout the country, representative office and 8 branches operating outside the country (31 December 2003: 611 branches, 1 representative office and 8 branches operating outside the country). As at 31 March 2004, the Bank employed 9,913 people (31 December 2003: 9,964 people). In addition to regular banking operations, the Bank also provides insurance intermediary services as an agency of Aksigorta A.Ş. and Ak Emeklilik A.Ş..
Some of the Bank’s shares have been quoted on the Istanbul Stock Exchange since 1990. In 1998, 4.03% of the outstanding share capital of the Bank was offered and sold in an international offering outside of Turkey in the form of Ordinary Shares and American Depository Receipt (“ADR”). As of 31 March 2004, almost 34% of the shares are publicly traded, including the ADRs.
II. INFORMATION ABOUT The BANK’S MAJOR SHAREHOLDING GROUP
The major shareholder group, directly or indirectly, is Sabancı Group.