Convenience translation into english

Average interest rates given in the table above are the weighted average rates of the related balance sheet items.

2- Prior Period - 31 December 2003	EURO	USD	Yen	TL
Assets	%	%	%	%
Cash (cash in vault, effectives, money in transit, cheques purchased) and balances with the Central Bank of Turkey	0.80	0.41	-	16.00
Due from banks and other financial institutions	2.24	0.77	-	26.40
Trading securities	9.16	5.73	-	61.24
Available-for-sale securities	9.22	7.50	-	34.61
Loans	4.13	5.82	-	43.20
Held-to-maturity securities	-	10.35	-	-
Liabilities
Bank deposits	2.83	2.56	-	24.49
Other deposits	2.46	2.25	-	22.49
Miscellaneous payables	-	-	-	-
Marketable securities issued	-	-	-	-
Funds borrowed	2.69	2.85	-	25.31

Average interest rates given in the table above are the weighted average rates of the related balance sheet item.

7. 
   LIQUIDITY rısk
   

Liquidity risk arises from mismatching of maturities of assets and liabilities. The Bank balances the maturities of the related assets and liabilities according to specific criterion and keeps the mismatching of maturities under control. A major objective of the Bank’s asset and liability management is to ensure that sufficient liquidity is available to meet the Bank’s commitments to customers and to satisfy the Bank’s own liquidity needs. For this objective, the Bank holds sufficient amount of short term funds. The Executive Risk Committee sets limits on the maturity mismatch of assets and liabilities and these limits are updated as necessary. Liquidity risk is measured and reported on a weekly basis. The Bank also analyses its liquidity risk on a daily and transaction basis, if there are significant market fluctuations.

The most important funding resources of the Bank are the equity capital which is mainly placed in interest earning assets, the diversified and steady deposit base and the long term funds borrowed from international institutions. In spite of a substantial portion of deposits from individuals being short-term, deposits are diversified by number and type, and maturities of great portion of deposits are renewed which indicates that these deposits will provide a long-term and stable source of funding for the Bank.

Breakdown of assets and liabilities according to their outstanding maturities:

	Demand(*)	1-3 Months	3-6 Months	6-12 Months	1 Year and over	Total
Current Period - 31 March 2004
Assets
Cash (cash in vault, effectives, money in transit, cheques purchased) and Balances with the Central Bank of Turkey	186,248	-	-	-	-	186,248
Due from banks and other financial institutions(****)	1,036,840	45,987	-	-	-	1,082,827
Trading securities	3,171	2,658	948,116	967,935	2,940,202	4,862,082
Available-for-sale securities	24,908	391,461	1,345,392	2,632,283	3,544,176	7,938,220
Loans	1,943,456	1,307,983	1,144,502	1,794,536	2,911,686	9,102,163
Held-to-maturity securities	-	322,382	-	-	322,383	644,765
Other assets(**)	1,482,428	305,363	521,542	324,802	510,702	4,154,145
Total assets	4,677,051	2,375,834	3,959,552	5,719,556	10,229,149	27,970,450
Liabilities
Bank deposits(****)	1,201,217	217,691	144,630	15,105	-	1,578,643
Other deposits	11,856,334	2,633,117	1,552,120	640,083	54,937	16,736,591
Funds borrowed	129,151	345,774	817,789	900,676	1,094,255	3,287,645
Marketable securities issued	-	-	-	-	-	-
Miscellaneous payables	165,446	-	-	-	-	165,446
Other liabilities(***)	325,957	310,089	59,992	28,702	5,477,385	6,202,125
Total liabilities	13,678,105	3,506,671	2,574,531	1,584,566	6,626,577	27,970,450
Net Liquidity Gap	(9,001,054)	(1,130,837)	1,385,021	4,134,990	3,602,572	-
Prior Period-31 December 2003
Total Assets(**)	6,377,277	2,483,124	3,128,171	7,296,591	11,071,687	31,401,788
Total Liabilities	15,550,797	3,962,001	1,677,753	3,049,286	7,161,951	31,401,788
Net Liquidity Gap	(9,173,520)	(1,478,877)	1,450,418	4,247,305	3,909,736	-

Note: Since the format of the table “Breakdown of assets and liabilities according to their outstanding maturities” cannot be changed:

(*) Items that have maturities up to one month are accepted as demand items. The current and prior period balances of the related items are shown below:
Current Period-31 March 2004 Prior Period-31 December 2003

Assets TL2,966,279 TL4,291,213

Liabilities TL10,688,099 TL12,070,145
(**) A maturity breakdown is not given for the investments, subsidiaries, fixed and intangible assets but their sum is included in the total. Therefore, the sum of the columns is not equal to the “Total Columns” and the difference is TL1,009,308 and TL1,044,938 for the current and prior periods, respectively.

(***) Shareholders’ equity is included within the “1 year and over” column.

(****) Receivables from money markets are included in “Due from other banks and financial institutions” and payables to money markets in “Bank deposits”.

SECTION FIVE

INFORMATION AND DISCLOSURES RELATED TO THE FINANCIAL STATEMENTS

1. 
   INFORMATION AND DISCLOSURES RELATED TO ASSETS
   

1. 
   Information related to the account of the Central Bank of Turkey:
   

	Current Period 31 March 2004	Prior Period 31 December 2003
Demand Unrestricted Amount	7,273	2,577
Time Unrestricted Amount	-	-
Total	7,273	2,577

2. 
   Additional information on trading securities, in net amounts:
   

1. 
   Information related to trading securities given as collateral or blocked:
   

Trading securities given as collateral or blocked are composed of foreign currency government bonds.

	Current Period 31 March 2004		Prior Period 31 December 2003
	TL	FC*	TL	FC*
Share certificates	-	-	-	-
Government Bonds, Treasury bills and similar investment securities	-	151,256	77,957	177,982
Other	-	-	-	-

* Foreign Currency
2. Trading securities subject to repurchase agreements:

	Current Period 31 March 2004		Prior Period 31 December 2003
	TL	FC*	TL	FC*
Government bonds	-	140,723	-	-
Treasury bills	-	-	-	-
Other debt securities	-	-	-	-
Bank bonds and bank guaranteed bonds	-	-	-	-
Asset backed securities	-	-	-	-
Other	-	-	-	-

* Foreign Currency
c. Information on investment securities available-for-sale:

1. 
   Types of investment securities available-for-sale:
   

Investment securities available-for-sale are composed of TL and FC government bonds, TL treasury bills and share certificates of institutions that the Bank has less than 10% share.

2. 
   Information on investment securities available-for-sale:
   

	Current Period 31 March 2004	Prior Period 31 December 2003
Debt securities	7,924,441	7,131,227
Quoted in a stock exchange	5,698,045	4,871,694
Not quoted (*)	2,226,396	2,259,533
Share certificates	56,242	55,804
Quoted in a stock exchange	51,231	51,231
Not quoted	5,011	4,573
Impairment provision (-)	(42,463)	(42,667)
Total	7,938,220	7,144,364

(*) Not traded on the balance sheet date, although quoted on a stock exchange.
3. Characteristics of investment securities available-for-sale given as collateral and their carrying value:
Investment securities available-for-sale given as collateral are composed of TL and foreign currency government bonds. The sum of the acquisition cost amounting TL924,998 and the interest accruals amounting TL103,551 is the carrying value of these securities, TL1,028,549 (31 December 2003: TL1,136,212).

4. Investment securities available-for-sale given as collateral or blocked are stated with their acquisition costs:

	Current Period 31 March 2004		Prior Period 31 December 2003
	TL	FC*	TL	FC*
Share certificates	-	-	-	-
Bond, T-bill and similar investment securities	496,256	428,742	442,578	490,101
Other	-	-	-	-

* Foreign Currency
5. Investment securities available-for-sale subject to repurchase agreements are stated with their acquisition costs:

	Current Period 31 March 2004		Prior Period 31 December 2003
	TL	FC*	TL	FC*
Government bonds	409,593	-	590,281	-
Treasury bills	-	-	-	-
Other debt securities	-	-	-	-
Bank bonds and bank guaranteed bonds	-	-	-	-
Asset backed securities	-	-	-	-
Other	-	-	-	-

* Foreign Currency