Turkey Wealth Report 2016

The Turkish banking sector is regulated by the Central Bank of the Republic of Turkey. According to the World Economic Forum’s Competitiveness Ranking 2015–2016, Turkey’s banking system ranked 51st of 144 countries.

The Turkish banking sector proved resilient during the 2008–2009 financial crises due to various reforms implemented by the Turkish government during the country’s financial crisis in 2000–2001. These included the restructuring of state banks, the strengthening of private banks, the prompt resolution of savings deposit insurance funds, and improvements to the country’s regulatory and supervisory framework. These measures were instrumental in a foreign direct investment (FDI) inflow of US$48 billion in the financial services sector during 2000–2014.

The five largest Turkish banks by market capitalization are TC Ziraat Bankası, Türkiye İş Bankası, Türkiye Garanti Bankası, Akbank and Yapı Kredi Bankası. As of September 2015, what percentages of banking assets were owned by public, private and foreign banks?

Scope

• An evaluation of the local wealth management market.

• Analysis of HNWI volume, wealth and allocation trends between 2011 and 2015

• HNWI volume, wealth and allocation forecasts to 2020

• An examination of HNWI and UHNWI asset allocations in 13 asset classes

• A geographical breakdown of all foreign assets

• An alternative breakdown of liquid versus investable assets

• Data on the number of HNWIs in major Turkish cities

• An overview of the size of the local wealth management industry

• Insights into the key drivers of HNWI wealth in Turkey

• Independent market sizing of Turkey’s HNWIs across five wealth bands

• Information on private banks in Turkey

Key Highlights

How many HNWIs are there in Turkey? How much wealth do they collectively hold in US$ billions?

By how much did the Turkish HNWI population decrease in 2015? How does this compare to the preceding year?

What is the substantial growth forecast for the Turkish HNWI population by 2020? What is the projected total of HNWIs by 2020? By what percentage is their wealth forecast to grow? What is the anticipated total in US$ billions?

Which was the largest asset class for Turkish HNWIs in 2015? What proportion of HNWI assets did it account for?

Which asset class recorded the highest growth during the review period?

Reasons to buy

• Analyze five Turkish wealth bands and identify the preferences for wealth management services in each band. Identify new growth opportunities while minimizing exposure to risk.

• Investigate a comprehensive analysis of the private banking and wealth management sector in Turkey, and deliver value propositions to clients based on the most current market information.

• Analyze HNWI volumes in each major Turkish city, and convert more prospects efficiently and effectively.

• Assess the proliferation of wealth management service providers in Turkey to identify where the competitive balance offers the best chance to increase your share of this lucrative market.

Companies mentioned

Central Bank of the Republic of Turkey , TC Ziraat Bankası, Türkiye İş Bankası, Türkiye Garanti Bankası, Akbank, Yapı Kredi Bankasi, UniCredit Group, Citi Bank AŞ, ING Bank AŞ, HSBC Bank AŞ, Burgan Bank AŞ, Bank of Tokyo – Mitsubishi UFJ Turkey AŞ (BTMU), Rhea Asset Management, UNLU & Co. Asset Management Services, Esas, and Egeli & Co.

Table of Contents

Table of Contents

1 Introduction

1.1 Details of this Report

1.2 Definitions

2 Executive Summary

3 Turkey Key Facts

4 Distribution of Wealth in Turkey

4.1 HNWI Volume and Wealth Trends

5 Findings from the WealthInsight HNWI Database

5.1 Trends in HNWI Wealth to 2020

5.1.1 HNWI trend analysis

5.1.2 Wealth band trends

5.1.3 Demographic breakdown of HNWIs

5.1.4 HNWIs – job titles

5.1.5 HNWIs – industry breakdown

5.1.6 HNWIs – industry performance

5.1.7 HNWIs – breakdown by city

5.1.8 HNWIs – city performance

5.1.9 HNWIs – city population densities

5.1.10 HNWIs – city forecasts

5.2 UHNWIs

5.2.1 UHNWI volume trend analysis

5.2.2 UHNWI wealth trend analysis

5.2.3 Demographic breakdown of UHNWIs

5.2.4 UHNWIs – industry breakdown

5.2.5 UHNWIs – city breakdown and performance

5.3 UHNWIs – Billionaires

5.3.1 Billionaire volume trend analysis

5.3.2 Billionaire wealth trend analysis

5.3.3 Billionaire per capita net worth trend analysis

5.3.4 List of billionaires

5.4 UHNWIs – Centimillionaires

5.4.1 Centimillionaire volume trend analysis

5.4.2 Centimillionaire wealth trend analysis

5.4.3 Centimillionaire per capita net worth trend analysis

5.5 UHNWIs – Affluent Millionaires

5.5.1 Affluent millionaire volume trend analysis

5.5.2 Affluent millionaire wealth trend analysis

5.5.3 Affluent millionaire per capita net worth trend analysis

5.6 Core HNWIs

5.6.1 Core HNWI volume trend analysis

5.7 Core HNWIs – Mid-Tier Millionaires

5.7.1 Mid-tier millionaire volume trend analysis

5.7.2 Mid-tier millionaire wealth trend analysis

5.7.3 Mid-tier millionaire per capita net worth trend analysis

5.8 Core HNWIs – Lower-Tier Millionaires

5.8.1 Lower-tier millionaire volume trend analysis

5.8.2 Lower-tier millionaire wealth trend analysis

5.8.3 Lower-tier millionaire per capita net worth trend analysis

6 Analysis of Turkish HNWI Investments

6.1 Analysis by Asset Class

6.1.1 Trends in alternative assets

6.1.2 Trends in ‘art, wine and wheels’

6.1.3 Trends of investment in real estate

6.1.4 Trends of investment in cash and deposits

6.1.5 Trends of investment in fixed-income

6.1.6 Investment trends in equity

6.1.7 Investments trends in business interests

6.2 Analysis of Foreign Investments

6.2.1 Investments in Europe

6.2.2 Investments in North America (including the US, Mexico and the Caribbean)

6.2.3 Investments in Asia-Pacific

6.2.4 Investments in South America

6.2.5 Investments in the Middle East

6.2.6 Investments in Africa

6.3 Alternative Breakdown: Liquid vs Investable Assets

6.4 Analysis of Turkish UHNWI Investments

7 Competitive Landscape

7.1 Domestic private banks

7.2 Foreign Private Banks

7.3 Wealth managers

7.4 Family offices

8 Key Drivers

8.1 TRY–US$ Exchange Rate

8.2 Real GDP Growth

8.3 Per Capita GDP

8.4 Domestic Market Capitalization

8.5 Commodity Index

8.6 Foreign Direct Investment (FDI) – Inflows and Outflows

8.7 Inflation Rate

8.8 Interest Rate

8.9 Balance of Payments

8.10 Government Debt

8.11 Stock Market Performance

8.12 Wealth Breakdowns

9 About WealthInsight

List of Tables

Table 1: HNWI Wealth Band and Group Definitions

Table 2: Turkish HNWIs – Volume Distribution (%), 2015

Table 3: Turkish HNWIs – Wealth Distribution Wealth Pyramid (%), 2015

Table 4: Turkish HNWIs – Industry Performance (%), 2011–2015

Table 5: Turkish HNWIs – Cities, 2015

Table 6: Turkish HNWIs – Growth in Top Cities (Thousand), 2011–2015

Table 7: Turkish HNWIs – Population Density in Major Cities 2015

Table 8: Turkish HNWIs – Populations in Top Cities (Thousand), 2011–2020

Table 9: Turkish HNWIs – Growth Rates for Top Cities (%), 2011–2020

Table 10: Turkish HNWIs – Sources of Wealth (%), 2015

Table 11: Turkish UHNWIs – Gender Performance (%), 2011–2015

Table 12: Turkish UHNWIs – Populations in Top Cities, 2011–2020

Table 13: Turkish UHNWIs – Growth Rates for Top Cities (%), 2011–2020

Table 14: Turkish Billionaires – Market Overview (Volume and US$ Billions) 2011–2020

Table 15: Turkish Top Billionaires (US$ Billion), 2015

Table 16: Turkish Billionaires – Wealth Growth (US$ Billion), 2011−2015

Table 17: Turkish Centimillionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Table 18: Turkish Affluent Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Table 19: Turkish Mid-Tier Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Table 20: Turkish Lower-Tier Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Table 21: Turkish HNWIs – Assets Allocations (%), 2011–2020

Table 22: Turkish HNWIs – Holdings Growth (%), 2011–2020

Table 23: Turkish HNWIs – Alternative Asset Composition (%), 2011–2020

Table 24: Turkish HNWIs – Trends of Investments in Alternative Assets (%), 2011–2020

Table 25: Turkish Trends in ‘Art, Wine and Wheels’, 2011–2015

Table 26: Global Prime Real Estate Prices per m2 (US$), 2015

Table 27: Turkish HNWIs – Foreign Investment Allocations (%), 2011–2020

Table 28: Turkish HNWIs – Liquidity Breakdown (US$ Billion), 2011–2020

Table 29: Turkish HNWIs – Liquidity Breakdown (%), 2011–2020

Table 30: Turkish UHNWIs – Allocations and Share of HNWI Assets (%), 2015

Table 31: Turkish Exchange Rate – TRY–US$ Exchange Rate, 2011–2020

Table 32: Turkish Real GDP Growth (%), 2011–2020

Table 33: Turkish GDP per Capita (US$), 2011–2020

Table 34: Turkish Domestic Market Capitalization (US$ Billion), 2011–2015

Table 35: Turkish Commodity Indices, 2011–2020

Table 36: Turkish Foreign Direct Investment (US$ Billion), 2011–2020

Table 37: Turkish Inflation Rate (%), 2011–2020

Table 38: Turkish Money Market Rate (%), 2011–2020

Table 39: Turkish Balance of Payments (US$ Billion), 2011–2015

Table 40: Turkish Government Debt as a Percentage of GDP (%), 2011–2020

Table 41: Turkish Stock Market Performance (Index), 2011–2015

Table 42: Turkish HNWI Wealth vs GDP Ratio (%), 2011–2020

Table 43: Turkey – Appendix One

Table 44: Turkey – Appendix Two

List of Figures

Figure 1: HNWI Wealth Band Definitions

Figure 2: Map of Turkey

Figure 3: Turkish Asset Price Performance (%), 2011–2015

Figure 4: Turkish HNWI Performance (US$ Billion and HNWI Volume), 2011–2020

Figure 5: Turkish vs Global HNWIs (%), 2011–2015

Figure 6: Turkish HNWIs – Growth Factor Correlation, 2011–2015

Figure 7: Turkish HNWIs – Wealth Pyramid (Volume Distribution), 2015

Figure 8: Turkish HNWIs – Wealth Pyramid (Wealth Distribution), 2015

Figure 9: Turkish HNWIs – Age Distribution (%), 2015

Figure 10: Turkish HNWIs – Job Titles (%), 2011–2015

Figure 11: Turkish HNWIs – Distribution by Industry (%), 2015

Figure 12: Turkish HNWIs – City Performance (%), 2011–2015

Figure 13: Turkish HNWIs – Volume of HNWIs by City (Thousand), 2011–2015

Figure 14: Turkish HNWIs – City Forecasts (%), 2016–2020

Figure 15: Turkish HNWIs – Population by City (Thousand), 2016–2020

Figure 16: Turkish UHNWIs – Wealth Share vs Volume Growth (%), 2011–2015

Figure 17: Turkish UHNWIs – Volume by Wealth Band 2011–2020

Figure 18: Turkish UHNWIs – Wealth by Wealth Band (US$ Billion), 2011–2020

Figure 19: Turkish UHNWIs – Age Distribution (Percentage Share), 2015

Figure 20: Turkish UHNWIs – Distribution by Industry (%), 2015

Figure 21: Turkish Billionaires – Market Overview (Volume and US$ Billion), 2011–2020

Figure 22: Turkish Centimillionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Figure 23: Turkish Affluent Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Figure 24: Turkish Mid-Tier Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Figure 25: Turkish Lower-Tier Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Figure 26: Turkish HNWs – Asset Class Composition (%), 2011–2020

Figure 27: Turkish HNWIs – Trends in Alternative Assets (US$ Billion), 2011–2020

Figure 28: Turkish Trends in ‘Art, Wine and Wheels’, 2011–2015

Figure 29: Turkish HNWIs – Foreign Investment Allocation and Growth (%), 2015

Figure 30: Turkish HNWIs – Global Distribution of Foreign Investments (%), 2011–2020

Figure 31: Turkish HNWIs – Liquidity Breakdown (%), 2011–2020

Figure 32: Turkish UHNWIs – Asset Class Composition (%), 2011–2020

Figure 33: Turkish Exchange Rate – TRY–US$, 2011–2020

Figure 34: Turkish Real GDP Growth (%), 2011–2020

Figure 35: Turkish GDP per Capita (US$), 2011–2020

Figure 36: Turkish Domestic Market Capitalization (US$ Billion), 2011–2015

Figure 37: Turkish Commodity Indices, 2011–2020

Figure 38: Turkish Foreign Direct Investment (US$ Billion), 2011–2020

Figure 39: Turkish Inflation Rate (%), 2011–2020

Figure 40: Turkish Money Market Rate (%), 2011–2020

Figure 41: Turkish Balance of Payments (US$ Billion), 2011–2015

Figure 42: Turkish Government Debt as a Percentage of GDP (%), 2011–2020

Figure 43: Turkish Stock Market Performance (Index), 2011–2015

Figure 44: Turkish HNWI Wealth vs GDP Ratio (%), 2011–2020

Figure 45: Turkish HNWIs – Volume by Wealth Band, 2011–2020

Figure 46: Turkish HNWIs – Wealth by Wealth Band (US$ Billion), 2011–2020

Figure 47: Turkish HNWIs – Wealth per Capita (US$ Million), 2011–2020

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