Turkiye Garanti Bankasi : Garanti BBVA 30 June 2022 Unconsolidated Financials and Footnotes

(Convenience Translation of Financial Statements and Related Disclosures and Footnotes

Originally Issued in Turkish)

Türkiye Garanti Bankası Anonim Şirketi

Publicly Announced Unconsolidated Financial

Statements, Related Disclosures and Independent

Auditors' Report Thereon

as of and for the Six-Month Period Ended

30 June 2022

(Convenience Translation of Financial Statements and Related

Disclosures and Footnotes Originally Issued in Turkish)

Güney Bağımsız Denetim ve SMMM A.Ş.	Tel: [phone]
Maslak Mah. Eski Büyükdere Cad.	Fax: [phone]
Orjin Maslak İş Merkezi No: 27	ey.com
Daire: 57 34485 Sarıyer	Ticaret Sicil No : 479920
İstanbul - Türkiye	Mersis No: 0-4350-3032-6000017

Convenience Translation of the Auditor's Limited Review Report

Originally Issued in Turkish (See Note I in Section Three)

Independent Auditors' Report on Review of Unconsolidated Interim Financial Information

To the Board of Directors of Türkiye Garanti Bankası Anonim Şirketi;

Introduction

We have reviewed the unconsolidated statement of financial position of Türkiye Garanti Bankası A.Ş. ("the Bank") at June 30, 2022 and the related unconsolidated statement of profit or loss, unconsolidated statement of profit or loss and other comprehensive income, unconsolidated statement of changes in shareholders' equity, unconsolidated statement of cash flows and a summary of significant accounting policies and other explanatory notes to the unconsolidated financial statements for the six month period then ended. The Bank Management is responsible for the preparation and fair presentation of interim financial statements in accordance with the "Regulation on Accounting Applications for Banks and Safeguarding of Documents" published in the Official Gazette no.26333 dated November 1, 2006, and other regulations on accounting records of Banks published by Banking Regulation and Supervision Agency ("BRSA") and circulars and interpretations published by Banking Regulation and Supervision Authority ("BRSA") and Turkish Accounting Standard ("TAS") 34 "Interim Financial Reporting" for those matters not regulated by BRSA Legislation (together referred as "BRSA Accounting and Financial Reporting Legislation"). Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with the Standard on Review Engagements (SRE) 2410, "Limited Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial reporting process, and applying analytical and other review procedures. A review of interim financial information is substantially less in scope than an independent audit performed in accordance with the Independent Auditing Standards and the objective of which is to express an opinion on the financial statements. Consequently, a review of the interim financial information does not provide assurance that the audit firm will be aware of all significant matters which would have been identified in an audit. Accordingly, we do not express an opinion.

Basis of Qualified Conclusion

As explained in Section Five Part II.8.4, the accompanying unconsolidated financial statements as at June 30, 2022 include a free provision at an amount of TL 7,500,000 thousands which was provided in prior years by the Bank management for the possible effects of the negative circumstances which may arise from the possible changes in the economy and market conditions which does not meet the recognition criteria of TAS 37 "Provisions, Contingent Liabilities and Contingent Assets".

A member firm of Ernst & Young Global Limited

Qualified Conclusion

Based on our review, except for the effect of the matter referred in the basis of qualified conclusion paragraph on the unconsolidated financial statements, nothing has come to our attention that causes us to believe that the accompanying unconsolidated financial statements do not give a true view of the financial position of Türkiye Garanti Bankası A.Ş. at June 30, 2022 and of the results of its operations and its cash flows for the six month period then ended in all aspects in accordance with the BRSA Accounting and Financial Reporting Legislation.

Other matter

The unconsolidated financial statements of the Bank as at December 31, 2021 and June 30, 2021 which were prepared in accordance with "BRSA Accounting Financial Reporting Legislation" were audited and reviewed by another audit firm respectively. Audit firm expressed a qualified opinion in their reports issued on February 2, 2022 since the unconsolidated financial statements which included in their reports include a free provision at an amount of TL 7,500,000 thousand out of which TL 4,650,000 thousand was provided in prior years and TL 2,850,000 thousand provided in 2021 by the Bank management as of December 31, 2021. Also Audit firm expressed a qualified conclusion in their reports issued on July 29, 2021 due to the free provision at an amount of TL 5,600,000 thousand of which TL 4,650,000 thousand provided in the prior years and TL 950,000 thousand provided in 2021 as of June 30, 2021 for the possible effects of the negative circumstances which may arise from the possible changes in the economy and market conditions.

Report on other regulatory requirements arising from legislation

Based on our review, nothing has come to our attention that causes us to believe that the financial information provided in the accompanying interim activity report in Section VII, are not consistent with the unconsolidated financial statements and disclosures in all material respects.

Additional paragraph for convenience translation to English

As explained in detail in Note I of Section Three, there are differences between accounting principles and standards set out by regulations in conformity with BRSA Accounting and Financial Reporting Legislation and the accounting principles generally accepted in countries, in which the accompanying unconsolidated financial statements are to be distributed and International Financial Reporting Standards ("IFRS"), including non application of IAS 29 Financial Reporting in Hyperinflation Economies. The effect of such differences has not been quantified in the accompanying unconsolidated financial statements. Accordingly, the accompanying unconsolidated financial statements are not intended to present the financial position, results of operations and changes in financial position and cash flows in accordance with the accounting principles generally accepted in such countries and IFRS.

Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi A member firm of Ernst & Young Global Limited

Damla Harman, SMMM

Partner

July 28, 2022 İstanbul, Türkiye

(2)

A member firm of Ernst & Young Global Limited

(Convenience Translation of Financial Statements and Related Disclosures and Footnotes

Originally Issued in Turkish)

TÜRKİYE GARANTİ BANKASI ANONİM ŞİRKETİ

UNCONSOLIDATED FINANCIAL REPORT AS OF AND

FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2022

Levent Nispetiye Mah.Aytar Cad.

No:2 Beşiktaş 34340 Istanbul

Telephone: [phone]

Fax: [phone]

www.garantibbva.com.tr

[e-mail]

The unconsolidated financial report for the six-month period ended prepared in accordance with the Communiqué of Financial Statements and Related Disclosures and Footnotes to be Announced to Public by Banks as regulated by Banking Regulation and Supervision Agency, is comprised of the following sections:

1. General Information about the Bank
2. Unconsolidated Financial Statements of the Bank
3. Disclosures Related to Accounting Policies Applied in the Related Period
4. Financial Position and Risk Management Applications of the Bank
5. Disclosures and Footnotes on Unconsolidated Financial Statements
6. Limited Review Report
7. Interim Activity Report

The unconsolidated financial statements and related disclosures and footnotes that were subject to independent audit, are prepared in accordance with the Regulation on Accounting Applications for Banks and Safeguarding of Documents, Turkish Accounting Standards, Turkish Financial Reporting Standards and the related statements and guidances, and in compliance with the financial records of our Bank and, unless stated otherwise, presented in thousands of Turkish Lira (TL).

Süleyman Sözen	Recep Baştuğ	Aydın Güler	Hakan Özdemir
Board of Directors	General Manager	Executive Vice President	Financial Reporting and
Chairman		Responsible of Financial	Accounting Director
		Reporting

Jorge Saenz - Azcunaga	Avni Aydın Düren	Belkıs Sema Yurdum
Carranza
Audit Committee Member	Audit Committee Member	Audit Committee Member

The authorized contact person for questions on this financial report:

Name-Surname/Title: Handan SAYGIN/Director of Investor Relations

Phone no: 90 212 318 23 50

Fax no: 90 212 216 59 02

	SECTION ONE	Page No:
	General Information
I.	History of the Bank including its incorporation date, initial legal status, amendments to legal status	1

1. Bank's shareholder structure, management and internal audit, direct and indirect shareholders, change

in shareholder structure during the period and information on bank's risk group

1

1. Information on the Bank's Board of Directors Chairman and members, Audit Committee members, Chief Executive Officer,

	Executive Vice Presidents and their responsibilities and shareholdings in the Bank	3
IV.	Information on the Bank's qualified shareholders	4
V.	Summary information on the bank's activities and services	4
VI.	Current or likely actual or legal barriers to immediate transfer of equity or repayment of debts between the Bank and its subsidiaries	4
	SECTION TWO
	Unconsolidated Interim Financial Statements
I.	Balance sheet - Assets	5
II.	Balance sheet - Liabilities	6
III.	Off-balance sheet items	7
IV.	Statement of profit or loss	8
V.	Statement of profit or loss and other comprehensive income	9
VI.	Statement of changes in shareholders' equity	10
VII.	Statement of cash flows	11
	SECTION THREE
	Accounting Policies
I.	Basis of presentation	12
II.	Strategy for use of financial instruments and foreign currency transactions	13
III.	Investments in associates and subsidiaries	14
IV.	Forwards, options and other derivative transactions	14
V.	Interest income and expenses	16
VI.	Fees and commissions	16
VII.	Financial instruments	17
VIII.	Disclosures on impairment of financial instruments	20
IX.	Netting and derecognition of financial instruments	25
X.	Repurchase and resale agreements and securities lending	27
XI.	Assets held for sale, discontinued operations and related liabilities	27
XII.	Goodwill and other intangible assets	28
XIII.	Tangible assets	28
XIV.	Leasing activities	30
XV.	Provisions and contingent liabilities	30
XVI.	Contingent assets	30
XVII.	Liabilities for employee benefits	30
XVIII.	Taxation	32
XIX.	Funds borrowed	34
XX.	Share issuances	35
XXI.	Confirmed bills of exchange and acceptances	35
XXII.	Government incentives	35
XXIII.	Segment reporting	35
XXIV.	Profit reserves and profit appropriation	37
XXV.	Earnings per share	37
XXVI.	Related parties	37
XXVII. Cash and cash equivalents	37
XXVIII. Other disclosures	38
	SECTION FOUR
	Financial Position and Results of Operations and Risk Management
I.	Total capital	40
II.	Credit risk	48
III.	Currency risk	48
IV.	Interest rate risk	50
V.	Position risk of equity securities	53
VI.	Liquidity risk management and liquidity coverage ratio	54
VII.	Leverage ratio	61
VIII.	Fair values of financial assets and liabilities	62
IX.	Transactions carried out on behalf of customers and items held in trust	62
X.	Risk management objectives and policies	62