Titulaciones Boehm y Punto de carga cero (pH PCC )

I. Basis of presentation

Additional paragraph for convenience translation to English

The differences between accounting principles, as described in the following paragraphs, and the accounting principles generally accepted in countries, in which the accompanying financial statements are to be distributed, and International Financial Reporting Standards (“IFRS”), may have significant influence on the accompanying financial statements. Accordingly, the accompanying financial statements are not intended to present the financial position and results of operations in accordance with the accounting principles generally accepted in such countries and IFRS.

I.a Disclosures on the preparation of financial statements and its explanatory notes in accordance with the Turkish Accounting Standards and the Regulation on Accounting Applications for Banks and Safeguarding of Documents

The unconsolidated financial statements are prepared in accordance with the decree “Regulation on Accounting Applications for Banks and Safeguarding of Documents” as described in Turkish Banking Law No 5411 and has been published in the Official Gazette No 26333 dated November 1, 2006, Turkish Accounting Standards (“TAS”) promulgated by Turkish Accounting Standards Association (“TASA”), Turkish Financial Reporting Standards (“TFRS”) and its related statements and interpretations. The Bank keeps its statutory accounting records in Turkish Lira in accordance with the Turkish banking Law, Turkish Commercial Law and the Turkish Tax Law.

The accompanying unconsolidated financial statements are prepared in YTL and in accordance with the historical cost basis except for the financial assets and liabilities, which are presented on a fair value basis.

Unless stated otherwise, the accompanying unconsolidated financial statements and the explanatory notes are presented in thousands of New Turkish Lira (TRY).

1.b Disclosures for the first-time adoption of Turkish Accounting Standards:

The Bank prepared its financial statements in accordance with TAS for the first time in December 31, 2006. In accordance with 'Turkish Financial Reporting Standards on the first time adoption of the TFRS' (“TFRS 1”), the transition date to TAS is January 1, 2005, and the following restatements are made to December 31, 2005 financial statements and to the earliest period presented as comparative to the financial statements as of December 31, 2006. In this respect there aren't any restatement effects of TAS and TFRS adoption reflected on the financial statements as of December 31, 2005.

1.c Accounting policies and measurement principles

The accounting policies and the measurement principles applied during the preparation of the financial statements are in compliance with TAS. The subject accounting policies and measurement principles are explained between the following explanatory notes numbered II and XXI.

Convenience Translation of Financial Statements and

Related Disclosures and Footnotes Originally Issued in Turkish

Deutsche Bank Anonim fiirketi

Unconsolidated Financial Report as of and For the year ended December 31, 2006

Convenience Translation of Financial Statements and

Related Disclosures and Footnotes Originally Issued in Turkish

Deutsche Bank Anonim fiirketi

Unconsolidated Financial Report as of and For the year ended December 31, 2006

(Thousands of New Turkish Lira [TRY])

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1.d Presentation of the financial statements according to the current purchasing power of the money

The Bank's unconsolidated financial statements have been prepared in accordance with TAS 29 “Reporting in Hyperinflationary Economies” until December 31, 2004. It was announced by BRSA on April 28, 2005, that the indicators of the requirement for the inflation accounting were not exist any more and therefore the inflation accounting application had been ceased and would not be applied starting from January 1, 2005.

II. Strategy for the use of financial instruments and foreign currency transactions

The main operations of the Bank are, Interbank Money Maket transactions, purchasing and selling marketable securities, foreign currency transactions and providing collateralized cash and non-cash loans.

The major funding resources of the Bank are its sharecapital and overnight borrowings from domestic and foreign financial institutions. The Bank's assets are mainly consist of overnight money market transactions and trading securities portfolio. Therefore the Bank provides high earnings while taking low risk.

The Bank is following an effective asset-liability strategy by holding marketable securities with strong demand on the market and overnight interbank money market instruments at its assets which secures the liquidity structure of the Bank to meet all maturing liabilities. For long-term placements and cash-loans, the Bank has high-yield strategy .

The purchasing and selling of the capital market instruments are the main activity of the Bank, that generates earnings over the average earnings of all of the operation segments of the Bank.

The off balance sheet items are mostly comprised of forward foreign currency purchases/sales transactions and letter of guarantees extended against cash borrowings from foreign financial institutions.

Foreign currency risk, interest rate risk and liquidity risk are measured daily and the asset-liability management is performed within the internal risk limits and legal limits by using the value at risk calculations and stress testings. The Bank does not have any foreign currency available for sale financial instruments .

The Bank does not have any investments in foreign associates.

III. Forward, options and other derivative transactions

In accordance with on the standard “Financial Instruments: Recognition and Measurement”; the forward foreign currency purchase/sales transactions and swap transactions, which are not considered as hedging instruments, are classified as trading derivative instruments.

The fair values of the trading forward foreign currency purchase/sales transactions are measured with the internal pricing models by taking the expectations from the market into account. The change in the fair values are recorded through the period's profit or loss.

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