Deutsche Bank A.Ş. Annual Report 2012

Transcription

Deutsche Bank A.Ş. Annual Report 2012
In November 2012, the Fitch Rating Agency upgraded Turkey's Long Term
Foreign Currency Rating to BBB-, the first time Turkey has received an investment
grade rating since 1994. During the last ten years, Turkey has achieved a very
impressive 5.5% average growth rate in its GDP. With a dynamic economy and
its successful management, Turkey offers growth in a stable environment to
strategic and financial investors, both at home and abroad. In recognition of the
enormous transformation of Turkey, we are pleased to dedicate the cover of our
Annual Report to a few representations of the new face of Turkey.
Contents
Message from the Chairman and the CEO - 02
01 -
Introduction
History of Deutsche Bank A.Ş. - 07
Financial Highlights - 07
Amendments to the Articles of Association - 08
Extraordinary General Meetings in 2012 - 08
Shareholder Structure, Changes during the Year,
Qualified Shares and Management Shares - 08
Associates - 08
Deutsche Bank A.Ş. within the Banking Industry - 09
Research and Development - 09
Operations in 2012 - 10
02 Management and Corporate Governance
Board of Directors - 19
Senior Management - 22
Statutory Auditors - 24
Committees - 24
The Summary Board of Directors Report Presented to the General Assembly - 27
Human Resources Applications - 28
Related - Party Transactions- 28
Outsourced Services - 29
Corporate Social Responsibility - 30
03 Financial Assessment and Risk Management
Statutory Auditors’ Report - 35
Report of the Audit Committee - 35
Management Declaration - 37
Audits - 38
Other Information Regarding Corporate Actions - 38
Financial Assessment - 39
Monitoring Targets - 39
Risk Management Policies - 39
Credit Ratings - 41
Summary of Five - Year Financial Highlights - 42
Annual Report Compliance Opinion - 43
04 Independent Auditors’ Report, Financial
Statements and Disclosures
Independent Auditors’ Report - 46
Unconsolidated Financial Report - 47
Financial Statements and Disclosures - 50
Deutsche Bank
Annual Report 2012
Message from the Chairman and the CEO
02
Message from the Chairman
and the CEO
Peter Tils
Chairman of the Board of Directors
Ersin Akyüz
CEO
Dear Shareholders,
We look back on 2012 as a year when economic growth has been
weak in most developed countries and slowing in developing
economies. In Europe, the forceful ECB intervention has eased
tail risks but it has failed to arrest economic stagnation. In the US,
growth was constrained by unresolved domestic fiscal policy issues
and the slowing growth globally. Low growth and uncertainty in
advanced economies affected emerging market and developed
economies and added to the domestic vulnerabilities.
The Turkish economy saw a healthy soft-landing in 2012, as
domestic demand decelerated and the current account deficit
declined. GDP growth and current account deficit as percent of GDP
are expected to decline to 2.7% from 8.5% and to 5.8% from 10%,
respectively. In early 2012 the Central Bank tightened monetary
policy to counter inflationary pressures and economic activity
declined on the back of higher loan rates and deceleration in loan
growth. With rebalancing in the economy and decline in inflation
to 6.2% at end-2012 from 10.5% a year ago, the Central Bank
eased monetary policy starting mid-year and economic activity is
gradually picking up also with strong capital inflows. Citing Turkey’s
success in rebalancing its economy, the Fitch Rating Agency
upgraded Turkey’s foreign currency rating to BBB- at the beginning
of November 2012, the first time Turkey has received an investment
grade rating from one of the three rating agencies since 1994.
Deutsche Bank
Annual Report 2012
03
Trading environment was relatively favourable compared to
2011. Following the ECB interventions at the end of 2011 and
at the beginning of 2012, concerns about capital inflows eased
considerably. Foreign exchange and interest rate markets stabilised.
The Central Bank’s easing of monetary policy resulted in benchmark
Treasury bill compound rates declining from the highs of around
11.7% at the early part of the year to 5.7% towards the end of the
year, receiving further support along the way from Fitch’s upgrade.
Continued capital inflows throughout the year, which intensified
following the rating upgrade, resulted in lending spreads declining
gradually during the first half of the year and sharply in the second
half, especially following the rating upgrade.
In this favourable environment, our Net Income more than tripled to
TL 104.1mn. As well as gains from Trading activities, we made good
progress in our medium-term objective of increasing the share of
Corporate Lending and Cash Management in our Net Income. Our
Balance Sheet declined from TL 2.242mn to TL 1.297mn. This was
due to a reduction on our securities portfolio following substantial
gains. Our Capital Adequacy at year-end was 49.4% versus 31.0%
at the end of 2011. We are highly confident that our capital strength
gives us ample room for further growth in our balance sheet.
Our Trading business, benefiting from integration into Deutsche
Bank’s global trading platform, showed great anticipation of the
easing liquidity conditions in Europe and in the US throughout the
year and by the Central Bank of Turkey in the second half of the
year. Our Sales and Coverage platform performed well to meet
the financing and trading demands of our financial and corporate
clients. Corporate Lending and Cash Management business showed
excellent progress in executing its medium-term growth strategy.
Our Corporate Loan Portfolio increased by over 50% at its highest
during the year with new local and multinational clients added to
the portfolio. Our Custody business continued to perform well. The
business continued to add new clients and maintained its leading
ratings in surveys amongst clients. We continued to strengthen our
Investment Banking Coverage and Advisory group. We advised on
two of the largest landmark transactions in 2012 and won a highly
coveted sale mandate in the financial sector.
Deutsche Bank
Annual Report 2012
04
Our cost base has increased in 2012 mainly due to local regulatory
requirements. We have invested on our IT platforms and human
resources to run and maintain our systems and processes locally.
On the other hand, we have started to review and challenge our
operating platform to achieve operational excellence and efficiency.
We continue to remain committed to our corporate social
responsibilities. Following the Van earthquake in late 2011, we
organized for the delivery of 20 container homes in February. Later
in the year we established an educational support program for 15
primary school students from amongst the earthquake victims.
Separately, we continue our support for a primary school in a poor
part of Istanbul. Our staff continue to complement these efforts
by active involvement with the students in the school. These
investments strengthen the fabric of the society and help enhance
the environment in which we operate.
Looking ahead into the rest of 2013, risks to global financial stability
persist, particularly those associated with the de-leveraging process
taking place in major developed economies and the exposure of
international banks to sovereign debts in countries with large fiscal
imbalances. And yet the likelihood of extreme events affecting
the international financial markets has diminished with strong
policy response helping to take out tail risks. Still regarding the
external environment, low economic growth rates are expected
for a prolonged period of time in developed economies. This is
particularly true for the Eurozone, where political uncertainties
and the skepticism about the soundness of the banking system in
some countries in the region remains a concern. Capital inflows
to emerging economies are expected to be strong and yet gradual
normalization of policy in the developed economies may result in
declining global liquidity towards the end of current year.
Deutsche Bank
Annual Report 2012
05
On the domestic front, the main challenges for policymakers
in Turkey this year is to ensure a gradual recovery in domestic
demand, avoid a resurgence in inflation and widening of the current
account deficit while safeguarding the economy against volatility in
capital flows. In this respect Turkey’s fiscal performance remains as
its strongest anchor and the Central Bank stands ready to counter
pressures by tightening credit conditions.
Despite this relatively benign economic conditions internationally
and domestically, we are very conscious of the fact that the year
ahead will be an extremely challenging one for us. The trading
conditions will be very difficult as the benchmark interest rates are
at all time lows. Separately, the lending spreads have narrowed to
very tight levels, substantially challenging our ability to meet our
hurdle rates. We will have to increase our volumes and product
range, and widen our client portfolio to offset the impact of the
reduced spreads on our Net Income. We are also implementing a
number of measures to improve our operational efficiency. We are
very confident that we will be able to weather these challenges and
we will continue to deliver outstanding service to our clients and
sustainable value to our shareholders.
Peter Tils
Chairman of the
Board of Directors
Ersin Akyüz
CEO
01 Introduction
History of Deutsche Bank A.Ş. - 07
Financial Highlights - 07
Amendments to the Articles of Association - 08
Extraordinary General Meetings in 2012 - 08
Shareholder Structure, Changes during the Year,
Qualified Shares and Management Shares - 08
Associates - 08
Deutsche Bank A.Ş. within the Banking Industry - 09
Research and Development - 09
Operations in 2012 - 10
Deutsche Bank
Annual Report 2012
01 - Introduction
History of Deutsche Bank A.Ş.
Financial Highlights
07
7
History of Deutsche Bank A.Ş.
•
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Established as Türk Merchant Bank A.Ş. in 1987.
Renamed as Bankers Trust A.Ş. in 1997.
Continued operations as Deutsche Bank A.Ş. as of 2000 following
Deutsche Bank’s acquisition of Bankers Trust.
Having provided corporate banking services under an investment banking license
until 2004, Deutsche Bank A.Ş. applied to the Banking Regulation and Supervision
Agency (BRSA) for permission to accept deposits in an attempt to expand its
product range.
Obtained permission to accept deposits in October 2004.
Added corporate cash management and custody and settlement services to its
product portfolio in 2005.
Acquired Garanti Bank’s domestic custody services and became the second
largest custodian bank in 2007.
Received authorization to participate in Treasury auctions as a market-maker in
2012 as every year since 2005.
Starting from 2010 continued to act as a market maker for TL-USD, TL-EUR and
EUR-USD futures contracts (with cash settlement) on the Turkish Derivatives
Exchange in 2012.
Received factoring and forfeiting licenses in February 2012, in accordance with the
decision taken by the Banking Regulation and Supervision Agency.
The Bank has no branches.
The Trade Registry Number of the Bank is 244378.
Web page: www.deutschebank.com.tr
Address: Eski Büyükdere Cad. Tekfen Tower No: 209 Kat: 17-18
4. Levent 34394 - Istanbul
December 31, 2012
Summary Financial Highlights
(TL 000) Cash and Balances with the Central Bank
Trading Securities
Loans and Receivables
Total Assets Deposits Shareholders’ Equity Interest Income
Operating Profit
2012
162,344
619,102
381,905
1,296,966
430,740
514,881
301,467
130,632
Financial Ratios
(%) 2012
Capital Adequacy Ratio
Shareholders’ Equity/Assets 49.36
39.70
Off-Balance Sheet Items
(TL 000) 2012
Guarantees and Warranties
Commitments
Derivative Financial Instruments Items Held in Custody
311,861
1,987,039
1,102,549
41,325,502
Deutsche Bank
Annual Report 2012
01 - Introduction
Amendments to the Articles of Association, Extraordinary General Meetings in 2012,
Shareholder Structure, Changes during the Year, Qualified Shares and Management Shares,
Associates
08
Amendments to the Articles of
Association
No amendments were made to the Articles of Association of Deutsche Bank A.Ş.
during 2012.
Extraordinary General Meetings
in 2012
Two Extraordinary General Meetings were held in 2012. In the first meeting, held
on June 27, 2012, Satvinder Singh was appointed as a member of the Board of
Directors for 3 years representing Deutsche Bank AG. In the second meeting held
on September 27, 2012, Marco Kistner was approved as a member of the Board of
Directors, replacing Ralph Glenn Lehnert; additionally, in the same meeting, the
resignation of all Board members was accepted and the Board members were reappointed for a period of 3 years in compliance with the Turkish Commercial Code.
Shareholder Structure, Changes
during the Year, Qualified Shares
and Management Shares
All shareholders of Deutsche Bank A.Ş. are Deutsche Bank Group companies.
The Bank holds no privileged shares.
There was no change in the shareholder structure in 2012.
The Bank did not acquire its own shares.
The most recent shareholder structure is presented in the table below.
Chairman and Members of the Board of Directors, Members of the Audit
Committee, CEO and Assistant General Managers do not own any shares in the
Bank.
01.01.2012 - 31.12.2012
Shareholder Number of Shares
Shares Capital (TL)
Deutsche Bank AG
1,349,999,730
134,999,973 Süddeutsche Vermögensverwaltung GmbH
68 6,8 DB Industrial Holdings GmbH
68 6,8 Nordwestdeutscher Wohnungsbauträger GmbH
67 6,7 DB Capital Markets (Deutschland) GmbH
67 6,7 Total
1,350,000,000 135,000,000
Associates
The Bank does not have any associates, either directly or indirectly.
Share (%)
99,99
<1
<1
<1
<1
100
Deutsche Bank
Annual Report 2012
01 - Introduction
Deutsche Bank A.Ş. within the Banking Industry
Research and Development
09
Deutsche Bank A.Ş. within the
Banking Industry
Operating in Turkey since 1987, leveraging the strong global banking network of
its parent company Deutsche Bank AG, Deutsche Bank A.Ş. is primarily focused on
corporate banking. Offering its corporate banking services with a workforce of 105
employees, Deutsche Bank A.Ş. is the Istanbul based subsidiary of Deutsche Bank
Group, which has approximately 100,000 employees and EUR 2.012 billion in total
assets (as of December 2012) in 74 countries throughout the world. Deutsche Bank
A.Ş. targets the highest levels of quality in all product and service segments in
which it is active, and strives to be the first or second choice for clients.
The assets of Deutsche Bank A.Ş. primarily consist of a treasury bill and
government bond portfolio held for trading purposes. Consequently, the Bank
has a significantly lower ratio of risk-weighted assets compared to the rest of the
sector. Off balance sheet forward foreign currency transactions are also one of the
Bank’s main areas of operation. The bulk of the Bank’s profit is generated from
interest income from securities.
In 2012, the Bank secured a 4.3% market share in the outright purchases and
sales market for bonds and bills and over-the counter fixed income securities
transactions. The Bank maintained its 2% market share in total foreign currency vs.
Turkish lira transaction volume. Commercial banking is an area in which Deutsche
Bank A.Ş. plans to be more actively involved in the upcoming period. The Direct
Securities Services, which operates under the Global Transaction Banking,
performed very successfully and maintained the 39% market share it had achieved
in 2011.
Deutsche Bank A.Ş. selects its clients through an especially diligent evaluation
process.
The Bank’s client portfolio consists of low-risk domestic and foreign companies.
The Bank’s high customer cash credit risk concentration is due to its limited
number of conscientiously selected clients.
Deutsche Bank A.Ş. has a relatively high capital adequacy ratio compared to the
sector average.
Research and Development
After many years of providing corporate banking services in Turkey under an
investment banking license, Deutsche Bank A.Ş. also began offering commercial
banking services in October 2004 after having been awarded a deposit taking
license. In 2005, a separate unit was established within the Bank to provide
settlement and custody services. Deutsche Bank A.Ş. continuously seeks to
enhance the quality and diversity of service. To this end, the Bank implements
system development studies required by its expanding services and cash
management products. Having started as an extension of its main business line in
2006, these services have continued effectively in 2012.
Combining its local experience with its main shareholder Deutsche Bank AG’s
global network, expertise and know-how in the areas of public offerings, block
sales and derivative products, Deutsche Bank A.Ş. continues to provide services in
the capital markets.
Deutsche Bank
Annual Report 2012
01 - Introduction
Operations in 2012
10
Operations in 2012
Deutsche Bank A.Ş. believes that Turkey, which has long stood out among
emerging economies, offers tremendous potential for growth and investment
in the years ahead. Corresponding to this perspective, the Bank is continuing its
expansion into Turkey with a primary focus on corporate banking.
The organization of Deutsche Bank A.Ş. is composed of Markets, Global Transaction
Banking, Corporate Finance and Support Functions.
Markets
The Markets business consists of two units; Trading and Research.
Trading: This unit conducts the structuring and sales transactions of debt and
money market instruments. It mediates the spot trading and derivatives trading
transactions of financial institutions, insurance companies and corporations in
foreign exchange and TL. The unit also conducts transactions of debt instruments,
treasury bonds, trading of bonds and derivative products. Moreover, it provides
clients with rate of exchange and interest risk management services by pursuing
risk management policies.
Deutsche Bank A.Ş. is a leader in the Turkish capital markets in terms of fixed
income products.
Research: The Research monitors macroeconomic and political developments
closely and provides the internal Bank units and its clients with information and
investment recommendations through daily, weekly and monthly periodic reports.
The Risk Management, Investment Banking and Capital Markets departments of
the Bank as well as the International Origination Department of Deutsche Bank rely
on the Research Department’s risk and return analyses for the Turkish economy in
their activities. The unit also actively shares its analyses with the sales units and
investors. Throughout 2012, the Research Unit focused on Central Bank monetary
policy, developments in the balance of payments, and the impact of instability in
foreign markets on Turkey. The Unit will continue to prioritise similar issues in 2013.
Global Transaction Banking
The Global Transaction Banking consists of three units providing services to
corporations and financial institutions; which are Direct Securities Services, Trade
Finance and Cash Management Corporates, and Cash Management & Trade FIs.
Direct Securities Services: With its Direct Securities Services Unit, established by a
highly competent and experienced team in 2005, Deutsche Bank A.Ş. has become
an extremely reputable bank, preferred by foreign investors for its custody services.
The Bank has a 39% market share among all the custodian banks that keep custody
of securities portfolios of foreign institutional investors.
While maintaining its market share, Deutsche Bank A.Ş. also continued to grow by
expanding its client portfolio. In addition to undertaking successful intermediary
services in a number of significant acquisitions, company takeovers transfers and,
especially, in stock lending transactions, Deutsche Bank A.Ş. also successfully
completed one tender call transaction process for the first time as an intermediary
bank.
Deutsche Bank
Annual Report 2012
01 - Introduction
Operations in 2012
11
Executive Committee
From left to right: Dr. Cem Akyürek, S. Mert Haracçı, H. Sedat Eratalar, Mustafa Bağrıaçık, Ersin Akyüz, Özge Kutay, Hakan Ulutaş,
Pınar Çapanoğlu Altuğ, Cenk Esener
Deutsche Bank A.Ş. Direct Securities Services maintained their ‘TOP RATED’ status,
first granted in 2009, and scored even higher points in the annual customer poll
conducted by the Global Custodian magazine in 2012, as in previous years. In this
way, it has asserted its first class quality of client services. On the other hand, the
Global Finance Magazine also selected Deutsche Bank A.Ş. as the most successful
Direct Securities Services provider.
In 2013, Deutsche Bank A.Ş. plans to boost its market share and capture the leading
position in the market for clearing and custody activities through new products to
be included in its already wide product range and with customized applications
developed for foreign investors.
Trade Finance and Cash Management Corporates: This unit mediates cash
management circulation in domestic and international trade. Its specialist teams
have been providing services and consultancy to clients in Turkey since 2006 in the
fields of short and medium term trade financing and risk management. Deutsche
Bank A.Ş. reflects the additional value of 100 years plus experience in more than 70
countries of Deutsche Bank, its main shareholder, to its clients. Besides Conventional
Foreign Trade products, the bank has become a reliable partner in its clients’ banking
transactions. This is achieved by providing customized solutions in terms of Trade
Financing products and corporate cash management.
Deutsche Bank
Annual Report 2012
01 - Introduction
Operations in 2012
12
In Corporate Banking, enhancing the efficiency of resources, and, for this purpose,
setting the necessary targets and attaining them gain more and more importance
with each passing day. Although the competition is becoming fiercer, particularly
in corporate banking as a result of rising interest from foreign capital organizations
in the wake of Turkey’s upgrade to Investment Grade by a leading international
rating agency, as Deutsche Bank A.Ş. Trade Finance and Cash Management
Corporate Unit we develop suitable products which meet the needs of changing
conditions, and we have gradually raised our market share.
Cash Management and Trade Finance, Financial Institutions: As one of the leading
global banks in the field of Cash Management, Deutsche Bank continues to provide
services as one of the solution partners and main correspondents for Turkish
banks. Enjoying this position to provide cash management solutions to banks, the
unit performs US Dollar money transfers through Deutsche Bank Trust Company
Americas, New York; Euro transfers through Deutsche Bank AG, Frankfurt and
Sterling transfers through Deutsche Bank AG, London. Services provided by the
unit include Dollar and Euro based commercial and treasury money transfers,
liquidity management, check services and sales and support services for
related products. While supporting clients with local, regional and global cash
management solutions, the unit aims to provide the most efficient and the best
services through its extensive global branch network.
Having been providing its clients with foreign trade services from 77 offices in 37
different countries, Deutsche Bank offers solutions for foreign trade products and
trade financing through its experience, knowledge and wide variety of products in
order to maximize the level of its clients’ efficiency in foreign trade transactions.
By taking an active role in the confirmation, financing and discounting of letters of
credit from Turkish financial institutions to those abroad, the division performs the
sales and marketing of similar products used in the financing of global trade.
Through difficult times in financial markets and the global economy, the Bank has
maintained uninterrupted and consistent support for Financial Institutions. Thus,
it aims to always be the most reliable and preferred business partner of Turkish
banks by continuing to share its Cash Management and Foreign Trade products
with clients, as well as to provide innovative solutions and global experience.
Corporate Finance
Corporate Finance is composed of two units; Investment Banking Coverage &
Advisory; and Capital Markets & Treasury Solutions.
Deutsche Bank
Annual Report 2012
01 - Introduction
Operations in 2012
13
Investment Banking Coverage & Advisory: The unit is divided into two groups;
Non-Financial Corporates Coverage and Financial Institutions.
- Non-Financial Corporates Coverage
The Non-Financials Corporate Coverage Group provides consultancy services
to Turkish companies as well as foreign companies seeking to invest in Turkey.
These consultancy services include company mergers and acquisitions, public
offerings and capital market and financing products. In this vein, in 2012, the
division provided consultancy services to the acquirer parties in the takeover of
Acıbadem Sağlık Hizmetleri ve Ticaret A.Ş. by Integrated Healthcare Holdings
and Khazanah, which was one of the year’s largest M&A projects in Turkey.
Again in 2012, as Deutsche Bank A.Ş., we provided buy side consultancy services
to Sberbank in its acquisition of all Denizbank shares held by Dexia, in what
was the largest acquisition in the Turkish banking sector in 2012. As in 2012,
the Bank aims to maintain its pioneering position in the market in 2013 through
developments in ongoing projects.
- Financial Institutions
The Financial Institutions Group provides consultancy services for mergers
and acquisitions of companies, public offerings, capital markets and financing
products. In this respect, it provides consultancy for various transactions and
conducts studies on financing and risk management in the region.
Capital Markets & Treasury Solutions: The Unit is divided into three groups; NonFinancial Corporates, Financial Institutions and Corporate Banking, providing
services to corporations and FI’s.
- Non-Financial Corporates
The Non-Financial Corporates group offers Turkish companies, operating both in
Turkey and abroad, access to Deutsche Bank’s global platform and accumulation
of knowledge in the field of structured finance and risk management. By working
in cooperation with the Corporate Coverage, the Bank aims to comprehensively
understand every facet of its clients’ needs. The Bank is then able to efficiently
and rapidly generate appropriate solutions by working with the right teams
within Deutsche Bank.
- Financial Institutions
The FI Group is responsible for developing, marketing and selling products in
order to meet the requirements of all financial institutions, primarily those of
banks, brokerage houses and asset management companies based in Turkey.
It offers a platform to financial institutions for all financial product transactions,
especially exchange and fixed income securities. In addition the group also
offers long-term funding and structured products by tailoring the design of the
products for its clients, allowing them to benefit from the worldwide distribution
network and product know-how of Deutsche Bank. In 2013, the FI group aims to
continue to offer solutions that fully meet the requirements of its clients, to offer
them with global access and products and thus to remain a key strategic partner
for financial institutions.
Deutsche Bank
Annual Report 2012
01 - Introduction
Operations in 2012
14
- Corporate Banking
The Corporate Banking aims to provide services in line with the priorities and
requirements of its local and multinational customer segment, so as to develop
strategic and longstanding relations with its prominent customers. In doing so,
the Group takes advantage of Deutsche Bank’s global know-how and maximizes
the coordination within different product groups, thus providing the most
effective solutions through exclusively designed financing techniques and
banking services for its clients. The Group’s target for 2013 will be to reinforce
its reputation as a reliable and permanent business partner by establishing
longstanding relations with its clients.
Support Functions
Support Functions include Human Resources, Risk Management, Legal, Finance,
Compliance and Internal Control, Internal Audit, Technology and Operations and
Global Logistic Services.
Human Resources: Human Resources Unit is responsible for the recruitment,
workforce planning, performance management, salary and fringe benefits
management, training and development processes in accordance with the Bank’s
strategies.
In the recruitment function, the unit ensures that the right people are employed to
pursue the Bank’s strategies, that they are qualified to create a corporate culture
and that they are appointed to the right positions. The Bank’s basic recruitment
policy is to hire professionals by placing emphasis particularly on expertise in the
employment of new human resources.
Ensuring a work environment compliant with globally adopted Deutsche Bank
values, the unit operates with the objective of implementing fair and competitive
compensation and fringe benefits. In 2012, remuneration was based on global and
local practices.
Aiming to develop the personal and business capabilities of the personnel and
to keep their motivation high and loyalty strong, the Human Resources Unit also
plays an active role in identifying and meeting the training and career development
needs of the employees.
Throughout the Bank, the review of processes for each Unit and the undertaking
of necessary steps regarding the optimization of resources continued for the sake
of bringing about a more effective organizational structure. Training, rotation
and transfer opportunities were stepped up to promote the effective utilization of
bank personnel to ensure the sharing of information and expertise. In line with
its strategy, the structuring of certain units will be accelerated and plans for the
establishment of necessary teams will continue.
Deutsche Bank
Annual Report 2012
01 - Introduction
Operations in 2012
15
Operations Committee
From left to right: M. Kemal Şahin, Ali Doğrusöz, A. Betül Göksal, Nesrin Akyüz, Ersin Akyüz, Özge Kutay, Günce Çakır İldun, C. Ertunç Ulak,
G. Duygu Özcan, Ö. Yekta Bahadıroğlu
Risk Management: The Risk Management Unit is responsible for Bank-wide
implementation of the standards “regarding the risk-return structure of the Bank’s
cash flows and monitoring, controlling and, when necessary, modifying the nature
and level of the operations” that were devised and put into effect by the Board of
Directors within the framework of the BRSA regulations.
The Risk Management Unit is responsible for understanding risks and conducting
sufficient evaluations before entering a transaction, setting risk management
policies and practice methods based on risk management strategies, ensuring the
application and adaptation of risk management policies and practice methods,
maintaining quantified risks within limits and reporting the risk measurements
and risk monitoring results to the Board of Directors or Board Member responsible
from Internal Systems and senior management, on a regular and timely basis.
Legal: The Legal Unit provides legal consultancy services to the business and
support service divisions of Deutsche Bank A.Ş. It examines the compliance
of contracts to which the Bank is a party, as well as transactions and texts
prepared by other divisions of the Bank with the applicable laws, and expresses
its opinions with respect to legal implications to the divisions. The Legal Unit is
also responsible for examining the Bank’s new projects and recently developed
products from a legal point of view, and where necessary, for offering legally
compliance alternatives. The Legal Unit represents the Bank in lawsuits to which
the Bank is a party or appoints 3rd party law firms for this purpose.
Deutsche Bank
Annual Report 2012
01 - Introduction
Operations in 2012
16
In 2013, the Legal Unit aims to continue providing legal consultancy services
related to the finance sector and issues concerning the Bank, to provide legal
support for potential projects, and to conduct the necessary studies in order for the
Bank to be in compliance with the amended legislation.
Finance: The Finance Unit examines the Bank’s financial position through
its daily and monthly reports and informs the Executive Management on the
results. In order to adequately assess the performance of profit centers, the unit
prepares the financial statements for these units on a daily and monthly basis.
The unit is in charge of providing the information flow for the Bank's audit by
the independent auditor and regulatory bodies. The Finance Unit generates new
projects for Executive Management reporting and internal control systems and
supports other related projects, the unit prepares the Bank’s financial statements
and related disclosures in the required format and submits them to entities such
as the Banking Regulation and Supervision Agency, Central Bank of Turkey,
Undersecretariat of Treasury, Capital Markets Board and The Banks Association of
Turkey.
Compliance and Internal Control: Compliance and Internal Control conducts Bank's
compliance and internal control activities. Responsibilities of the unit in terms of
compliance are to ensure compliance of internal by-laws and applications and each
and every contract and similar legal text that may be binding on Deutsche Bank
with the related applicable laws, regulations, ethical principles and widely-accepted
Principles of Corporate Governance. Within this framework, it is responsible
from conducting the necessary research and preparing the necessary reports
regarding the businesses and transactions of the Bank's clients by taking the
relevant laws and regulations, especially the Banking Law no. 5411 and Law no.
5549 on Prevention of Laundering Proceeds of Crime as basis. It acts as a bridge
between business units. The unit provides recommendations about maintaining
the necessary legal compliance and cooperation in relations with the supervisory
and regulatory institutions determined by laws and regulations. The unit also
undertakes to give opinions and recommendations about the necessary issues to
the Board of Directors, Executive Management and business units, in compliance
with the related legislation.
The Compliance and Internal Control Unit is secondarily responsible for the
internal control activities after the unit, which is liable from the operation of all
control systems established within the body of Deutsche Bank A.Ş. in the first
place, primarily the financial and operational systems. The Unit maintains its
activities within the framework of “Compliance and Internal Control By-Law”
confirmed by the Board of directors.
The principle of separation of powers has been established for the necessary
control points within the Bank. The independence of the internal control process
from the functional activity units has been sufficiently assured and tasks and
responsibilities within the corporate structure have been separated on the basis
of function. Thanks to this organizational structure, measures within the internal
control system are implemented independently and objectively with the principle
of the separation of powers. The internal control system is regulated in compliance
with the types and levels of risks emerging in relation with the character and
content of the Bank’s activities.
Deutsche Bank
Annual Report 2012
01 - Introduction
Operations in 2012
17
Internal Audit: The Internal Audit Unit monitors the internal audit structure at all
Deutsche Bank A.Ş. units regularly and independently on behalf of the Board of
Directors. The Unit evaluates the unit’s transactions and practices on the basis of
targets, their compliance with internal/external regulations and their performance
within the framework of risk analysis, and focuses on assisting the Board of
Directors regarding the effectiveness of the corporate management.
The Unit checks that the Bank’s ethical standards have been fully implemented
by the business units. In addition to monitoring the compliance with internal
and external regulations, Internal Audit also conducts dynamic and effective
monitoring of the working environment at all business and support units under a
risk focused approach.
Technology and Operations: On-shoring of the Bank's systems and processes
project, which was ongoing from 2011, was completed in 2012. At the same time,
the control structure has been strengthened and controls made by employees
has been reduced by boosting the number of systemic controls. Both capacity
generation and product and communication structures have been strengthened in
order to meet clients’ growing requirements.
The Technology and Operations Units will focus on risk monitoring, product
diversification and capacity expansion in 2013. In line with the bank’s strategy, the
improvement in the Risk Management, Service Oriented Architectures, Hardware
and Software Consolidation, Information Technologies and Operational Continuity
will go on.
Global Logistic Services: Global Logistic Services Unit is responsible for providing
a working environment compliant with the necessary health and safety conditions
in order to sustain the activities of Deutsche Bank A.Ş. in a productive, safe
and efficient way. The unit is also responsible for the management of critical
systems such as construction, real estate, decoration, rent management, building
management, strategies for working spaces, security systems, office and building
maintenance, generators, UPS and mechanical and electrical systems, as well as
conducting corporate services such as insurance, providing physical archive space,
car rental, couriers and reception. The unit maintains its efforts to create a physical
working environment in compliance with Deutsche Bank's global values and
standards in order to better meet the internal client needs.
02 -
Management and Corporate Governance
Board of Directors - 19
Senior Management - 22
Statutory Auditors - 24
Committees - 24
The Summary Board of Directors Report Presented to the
General Assembly - 27
Human Resources Applications - 28
Related - Party Transactions - 28
Outsourced Services - 29
Corporate Social Responsibility - 30
Deutsche Bank
Annual Report 2012
02 - Management and Corporate Governance
Board of Directors
19
Board of Directors
1
2
3
4
5
6
7
8
9
10
Board of Directors
Deutsche Bank
Annual Report 2012
20
Board of Directors
1
Peter Johannes Maria Tils
Chairman of the Board of Directors,
Chief Executive Officer of Central and Eastern Europe Region
Born in 1952, Peter Tils graduated from the University of Cologne with an MBA. He
has more than 35 years of experience in banking. Mr. Tils joined Deutsche Bank
AG in 1977 and has been serving as the Chief Executive Officer for the Central
and Eastern Europe Region at Deutsche Bank in Frankfurt since 2005. Tils was
appointed as the Chairman of the Board of Directors of Deutsche Bank A.Ş. on
November 21, 2012.
2
Ersin Akyüz
Executive Board Member,
CEO
Born in 1961, Mr. Akyüz has a Bachelor’s and Master’s degree in Economics from
the London School of Economics in addition to a Master’s degree in Business
Administration from the University of Chicago. Assuming various positions both in
Turkey and abroad in his 24 - year banking career, Mr. Akyüz joined Deutsche Bank
A.Ş. in February 2008 as the CEO/Executive Board Member.
3
Ahmet Arınç
Executive Board Member,
Deutsche Bank AG, London
Markets Trading, Managing Director
Born in 1970, Mr. Arınç is a graduate of the College of Wooster, Department of
Economics. He has 21 years of experience in the banking industry and joined
Deutsche Bank in 1998. Serving as a Managing Director in charge of Emerging
Markets Trading at Deutsche Bank AG, Mr. Arınç joined the board of Deutsche
Bank A.Ş. in August 2000. Mr. Arınç has been serving as an Executive Board
Member since September 2002.
4
Kaya Didman
Vice Chairman of the Board of Directors,
Chairman of Audit Committee
Born in 1962, Mr. Didman is a graduate of Boğaziçi University, Department of
Business Administration. Mr. Didman held senior positions in companies such
as Türk Ekonomi Bank, Baring Securities (London) and Morgan Stanley & Co. in
London. Appointed to the Board of Directors at Deutsche Bank A.Ş. in June 2007,
Mr. Didman has served as the Audit Committee Chairman since March 2008.
5
Hamit Sedat Eratalar
Board Member Responsible from Internal Systems
Born in 1952, Mr. Eratalar is a graduate of Ankara University, Department of
Economics and Public Finance. He worked as a partner at Arthur Andersen
between 1981 and 2001 and served as a founding partner at Eratalar Management
Consulting between 2001 and 2008. Serving on the Board of Directors at Deutsche
Bank A.Ş. since August 2001, Mr. Eratalar was appointed Board Member in Charge
of Internal Systems in 2006. Eratalar temporarily served as a member of the Audit
Committee in 2012.
Board of Directors
Deutsche Bank
Annual Report 2012
21
6
Marco Kistner
Member of the Board of Directors
Born in 1964, Marco Kistner graduated with a degree in Banking Management
from the University of Frankfurt. With 29 years of banking experience, Mr. Kistner
has been working for Deutsche Bank AG since 1984. Currently serving as the
Global Director of Emerging Markets Credit Risk Management, Mr. Kistner was
appointed as a member of Board of Directors of Deutsche Bank A.Ş. in September
2012.
7
Satvinder Singh
Born in 1970, Satvinder Singh graduated with an MBA from the University of
Durham. Having worked for HSBC and Citibank before joining Deutsche Bank AG
in 2011, Mr. Singh is the Global Director of Direct Securities Services and Cash
Management FI. Mr. Singh was appointed as a member of the Board of Directors
of Deutsche Bank A.Ş. in July 2012.
8
Miklos Kormos
Born in 1962, Miklos Kormos holds a Master’s degree in Diplomatic Relations from
the University of Vienna and a PhD in Economics from the University of Budapest.
He joined Deutsche Bank AG in 2007 and currently serves as the Managing
Director responsible for Deutsche Bank AG’s Investment Banking operations in
Central Europe, Israel and Turkey. With 20 years of experience in banking, Mr.
Kormos was appointed as a member of the Board of Directors of Deutsche Bank
A.Ş. in November 2012.
9
Özge Kutay
Member of the Board of Directors responsible from Financial Reporting
Chief Operating Officer
Born in 1970, Ms. Kutay is a graduate of the Faculty of Business Administration at
Istanbul University. Starting her career at the Turkey Office of KPMG in 1993, Ms.
Kutay has 16 years of experience in banking. Having been employed by Deutsche
Bank A.Ş. since 1998, she served as an Assistant General Manager between 2001
and 2012 before being appointed as a member of the Board of Directors in October
2012.
10 Paul Antony Geradine
Member of the Board of Directors, Member of the Audit Committee
Born in 1960, Paul Geradine holds a Master’s degree in Modern History from
the University of Oxford. Having worked for UBS AG and HSBC before joining
Deutsche Bank AG in 2012, Mr. Geradine is currently responsible for Deutsche
Bank AG’s Corporate Banking Services Compliance Unit in the Europe, the Middle
East and Africa regions. Mr. Geradine was appointed as a member of the Board
of Directors and a member of the Audit Committee of Deutsche Bank A.Ş. in
December 2012.
Outgoing: Jürgen Hinrich Fitschen, Mark Brian Satterthwaite, Ralph Glenn Lehnert.
None of the members of the Board of Directors is involved in transactions with
the Bank either in their own capacity or on behalf of third persons or engaged in
operations considered under the prohibition of competition.
Deutsche Bank
Annual Report 2012
Senior Management
22
Senior Management
Ersin Akyüz, Executive Board Member, CEO:
Born in 1961, Mr. Akyüz has a Bachelor’s and Master’s degree in Economics from
the London School of Economics in addition to a Master’s degree in Business
Administration from the University of Chicago. Assuming various positions both in
Turkey and abroad in his 24-year banking career, Mr. Akyüz joined Deutsche Bank
A.Ş. in February 2008 as the CEO/Executive Board Member.
Özge Kutay, Member of Board of Directors responsible from Financial Reporting Chief Operating Officer:
Born in 1970, Ms. Kutay is a graduate of the Faculty of Business Administration at
Istanbul University. Starting her career at the Turkey Office of KPMG in 1993, Ms.
Kutay has 16 years of experience in banking. Having been employed by Deutsche
Bank A.Ş. since 1998, she served as an Assistant General Manager between 2001 and
2012 before being appointed as a member of the Board of Directors in October 2012.
Ali Doğrusöz, Assistant General Manager - Technology and Operations:
Born in 1963, Mr. Doğrusöz graduated from North Carolina State University,
Department of Mechanical Engineering and received a master’s degree in Mechanical
Engineering from Middle East Technical University. With 24 years of professional
experience, Mr. Doğrusöz has been working at Deutsche Bank A.Ş. as the Assistant
General Manager since 2002.
Süleyman Mert Haracçı, Assistant General Manager - Markets:
Born in 1971, Mr. Haracçı graduated with both undergraduate and master’s degrees
from Marmara University, Department of Finance. Serving in the banking sector since
1996, Mr. Haracçı joined Deutsche Bank A.Ş. in 2000. He was appointed Assistant
General Manager in 2009.
Mustafa Bağrıaçık, Assistant General Manager - Corporate Finance, Investment
Banking Coverage and Advisory, Corporate Coverage:
Born in 1968, Bağrıaçık holds a Bachelors degree from the Mechanical Engineering
Faculty of Istanbul Technical University, a Masters in Finance from Boston College,
and a Masters in Management from Suffolk University. Throughout his 18 - year
banking career, Bağrıaçık has undertaken various posts both in Turkey and abroad.
Bağrıaçık was appointed as Assistant General Manager in October 2012.
Hakan Ulutaş, Assistant General Manager - Global Transaction Banking, Direct
Securities Services:
Born in 1965, Mr. Ulutaş is a graduate of Istanbul University, Department of Business
Administration and holds a master’s degree in Business Administration from
Marmara University as well as a master’s degree in Management from North Carolina
State University. Mr. Ulutaş spent 20 years of his 23-year professional career in the
banking sector. Hakan Ulutaş has been with Deutsche Bank A.Ş. since 2004. Ulutaş
was appointed as the Assistant General Manager in October 2012.
Cenk Esener, Assistant General Manager - Global Transaction Banking, Trade Finance
and Cash Management Corporates:
Born in 1970, Mr. Esener graduated from Eastern Mediterranean University, in the
Department of Economics. Having served for 17 years in similar positions in various
banks, he joined Deutsche Bank A.Ş. in August 2009, and was appointed as Assistant
General Manager in October 2012.
Hüseyin Hüsnü Okvuran, Managing Director - Corporate Finance, Investment Banking
Coverage and Advisory, FI Coverage:
Born in 1972, Mr. Okvuran graduated with a Bachelor’s degree from the Faculty of
International Relations and Economics at Yale University. Throughout his 19-year
banking career, Okvuran has undertaken various positions in the investment-banking
sector abroad. Okvuran took up his position as director responsible for Turkey, the
Middle East and South-eastern Europe at the Deutsche Bank Investment Banking
Services, Financial Institutions Group in August 2011.
Pınar Çapanoğlu Altuğ, Director - Global Transaction Banking,
Cash Management and Trade Finance, FIs:
Born in 1977, Mrs. Çapanoğlu graduated from the Middle East Technical University
with a degree from the Department of Economics. Serving in the banking sector since
1999, Mrs. Çapanoğlu joined Deutsche Bank A.Ş. in 2008.
Deutsche Bank
Annual Report 2012
Senior Management
23
Ali Cem Cansu, Director - Corporate Finance,
Capital Markets and Treasury Solutions, Corporate Banking:
Born in 1972, Mr. Cansu graduated from the Department of Political Science and
Public Administration in Middle East Technical University Administrative Sciences.
Mr. Cansu holds an Executive MBA degree from Koç University from 2007 and has a
total of 16 years of banking experience mainly in the fields of Corporate Banking and
Trade Financing. He has been providing services for Deutsche Bank A.Ş. since March
2010.
Dr. Cem Akyürek, Director - Research:
Born in 1959, Mr. Akyürek graduated from the Department of Economics in Boğaziçi
University. Holding MA and PhD degrees from Florida Atlantic University and
University of Miami, Mr. Akyürek has been providing services for Deutsche Bank
A.Ş. since 2008. Mr. Akyürek has a wealth of experience over the course of 22 years
and prior to joining Deutsche Bank, he worked in various positions in domestic and
foreign financial institutions regarding strategic planning and economic research in
addition to conducting academic studies.
Orhan Özalp, Vice President - Corporate Finance, Capital Markets and Treasury
Solutions, Financial Institutions:
Born in 1982, Mr. Özalp graduated with a Bachelor’s degree from the Economics
and Business Administration Departments at Koç University. Having worked at
the Trading Unit for Deutsche Bank A.Ş. since 2006, Özalp has been serving as the
Manager in charge of Financial Institutions since 2011.
Özcan Yekta Bahadıroğlu, Director - Internal Audit:
Born in 1969, Mr. Bahadıroğlu is a graduate of Middle East Technical University,
Department of Economics and holds an MBA from RSM Erasmus University. Working
in the banking industry since 1996, he joined Deutsche Bank A.Ş. in 2002. Mr.
Bahadıroğlu holds CIA (Certified Internal Auditor) and CISA (Certified Information
Systems Auditor) certificates.
Mustafa Kemal Şahin, Director - Compliance and Internal Control:
Born in 1970, Mr. Şahin is a graduate of Middle East Technical University, Department
of Economics and has an MBA from Warwick Business School. Working in the
banking sector since 1992, Mr. Şahin joined Deutsche Bank A.Ş. in 2005 and was
appointed as the Money Laundering Reporting Officer of the Bank. Mustafa Kemal
Şahin is also appointed as Anti-Money Laundering Officer.
Cenk Ertunç Ulak, Director - Risk Management:
Born in 1976, Ulak holds a Bachelors degree in Management from Boğaziçi University
and a Masters in Management from Koç University. Working in the banking sector
since 1999, Ulak joined Deutsche Bank A.Ş. in 2011.
Günce Çakır İldun, Director - Legal:
Born in 1977, Mrs. İldun is a graduate of Ankara University, Faculty of Law and holds
a Master of Laws (LL.M.) degree from State University of New York, Buffalo. Günce
Çakır İldun has 13 years of professional experience, 12 of which were in the banking
sector. Mrs. İldun has been with Deutsche Bank A.Ş. since December 2006.
Ayşe Betül Göksal, Director - Human Resources:
Born in 1967, Mrs. Göksal holds an undergraduate degree in psychology from the
Boğaziçi University. Having served in the field of human resources in various sectors
since 1991, Mrs. Göksal spent 16 years of her 21 years of professional experience
dealing with human resources practices in the banking sector.
Gonca Duygu Özcan, Vice President - Global Logistic Services:
Born in 1972, Mrs. Özcan is a graduate of Istanbul Technical University, Department
of Architecture and holds an MBA from Istanbul Bilgi University/Manchester Business
School. She has 20 years of professional experience, 17 of which are in the banking
sector. Mrs. Özcan joined Deutsche Bank A.Ş. in 2006.
Nesrin Akyüz, Vice President - Finance:
Born in 1975, Nesrin Akyüz graduated from the Middle East Technical University with
a degree from the Department of Business Administration. Having gained auditing
experience in various banks since 1997, Akyüz joined Deutsche Bank A.Ş. in 2006.
Deutsche Bank
Annual Report 2012
Statutory Auditors
Committees
24
Statutory Auditors
Erdal Hasan Ortaç, Statutory Auditor:
Born in 1948, Mr. Ortaç is a graduate of the Istanbul Academy of Economics and
Commercial Sciences. He has 40 years of professional experience and has been
serving as a statutory auditor since June 2006.
Sacit Akdemir, Statutory Auditor:
Born in 1964, Sacit Akdemir is a graduate of Ankara University, Department of
Public Administration within the Faculty of Political Sciences, and holds an MA in
Economics from Eastern Michigan University. He has served in various positions
in public and private sectors since 1986. Sacit Akdemir has been serving as a
statutory auditor since 2006.
Committees
Audit Committee
Kaya Didman, Chairman
Paul Antony Geradine, Member
The Audit Committee was established on October 31, 2006, pursuant to the Board
of Directors Resolution No. 48/6. The Audit Committee convened 19 times during
the 2012 fiscal year.
Assets and Liabilities Committee (ALCO)
Ersin Akyüz, Chairman
Özge Kutay, Member
Cenk Esener, Member
Hakan Ulutaş, Member
Joachim Bartsch, Member
S. Mert Haracçı, Member
Cenk Ertunç Ulak, Member
The ALCO is responsible from analyzing the Bank's future capital requirements by
overseeing the structure of the Bank's assets and liabilities, and evaluating riskbearing assets, liquidity and market risk. The ALCO convenes quarterly under the
presidency of the Bank’s CEO. During the 2012 fiscal year, all committee meetings
were attended by all members either in person or via teleconferencing.
Executive Committee (EXCO)
Özge Kutay, Member
Cenk Esener, Member
Pınar Çapanoğlu Altuğ, Member
H. Sedat Eratalar, Member
Mustafa Bağrıaçık, Member
The Executive Committee meets once a month for a number of purposes including
Deutsche Bank's global strategies to be followed in Turkey, generating ideas
for the mutual development of coordination and new business ideas among
the executive units established in Turkey, in addition to exploring cross-selling
opportunities, coordination with the infrastructure units and assessing any risks
regarding the reputation of Deutsche Bank’s franchise.
Deutsche Bank
Annual Report 2012
Committees
25
Operations Committee
Özge Kutay, Chairman
Ali Doğrusöz, Member
Mustafa Kemal Şahin, Member
Ö. Yekta Bahadıroğlu, Member
G. Duygu Özcan, Member
Ayşe Betül Göksal, Member
Günce Çakır İldun, Member
Cenk Ertunç Ulak, Member
Nesrin Akyüz, Member
The Operations Committee meets on a weekly basis. The Committee is a platform
where all Operations, Support and Control Units discuss the developments,
changes and problems regarding the operations of the Bank, produce solutions
and organize the effective utilization and allocation of resources. The Committee
meeting minutes are reported to the CEO and the Board Member responsible from
the Internal Systems.
Personnel Committee
Özge Kutay, Member
Ayşe Betül Göksal, Member
Ali Doğrusöz, Member
Cenk Esener, Member
The Personnel Committee is responsible for setting up the necessary platforms
for establishing, implementing, discussing and modifying personnel policies;
evaluating promotion recommendations up to the Vice President level; organizing
training and development tasks that have Bank-wide relevance; and implementing
the benefits to be provided to the personnel. The Committee meets once a year
or when deemed necessary by the Committee Chairman or the Human Resources
Unit. Human Resources represent units that are not self-represented in Committee
meetings.
Reputational Risk Committee
Ahmet Arınç, Member
Özge Kutay, Member
M. Kemal Şahin, Member
Sancar Tomruk, Member
Cenk Esener, Member
Günce Çakır İldun, Member
Clients, transactions and other matters that are deemed to be of potential risk
to the Bank’s reputation are assessed at the Reputational Risk Committee. The
Reputational Risk Committee offers recommendations to the related units on
whether the Bank should accept the transactions or clients under consideration.
The Committee meets under the presidency of the CEO when deemed necessary.
The Compliance and Internal Control Director undertakes the duty of Secretary of
the Committee.
Deutsche Bank
Annual Report 2012
Committees
26
Credit Committee
Özge Kutay, Member
The Credit Committee was established to allocate credits under the authority
delegated to the committee by the Board of Directors’ decision No. 84 dated
December 13, 2010. The Committee takes loan decisions within the limits
determined for itself, and by determining the allocation conditions. The frequency
of Credit Committee meetings is arranged as per necessity, but no less than twice a
month.
Risk Management Meetings
Risk Management Meetings are held on a weekly basis with the participation of at
least the following members:
- Member of the Board of Directors responsible from Internal Systems,
- CEO,
- Head of the Risk Management Unit,
- Member of the Board of Directors responsible from Financial Reporting and the COO,
- if necessary, head of any of the business units."
The Meetings are held on a weekly basis, and cover such issues as global and local
market developments and the impact of probable interest rate and exchange rate
movements on the Bank’s balance sheet. The Bank’s foreign currency and T-Bill/
bond/bill exposure, as well as credit and operational risks are also evaluated in these
meetings.
Participation of Board Members and Committee Members in Meetings
The Board of Directors meets at least once a month in accordance with the Bank’s
Articles of Association and governing legislation to oversee matters related to the
Bank and to make decisions (within the scope of its duties and responsibilities).
When deemed necessary, the Chairman of the Board of Directors also calls
for meetings. During 2012, members participated in Board meetings regularly,
conforming to the criteria for a quorum to convene and make decisions.
The Audit Committee meets at least once a month. In principle, Committee
members participate in all meetings. However, in the event that they are not present
at the Bank, due to business travel arrangements or other reasons, they participate
through teleconferencing to present their opinions and suggestions regarding
agenda items. In 2012, the Committee and Council Members participated in
Committee meetings regularly, conforming to the criteria to form a quorum to
convene and arrive at decisions.
Transactions conducted by Members of the Board of Directors with the Bank
Pursuant to the permission granted by the Bank's General Assembly, none of the
members of the Board of Directors is involved in transactions with the Bank either in
their own capacity or on behalf of third persons or engaged in operations considered
under the prohibition of competition.
Financial Benefits of the Senior Executives
In the current period, the total benefits allocated to senior executives such as
Chairman of the Board of Directors, members of the Board of Directors, the CEO
and the Assistant General Managers amounting to TL 15,127 thousands and
expenses such as the transportation and accommodation of senior executives
amounting to TL 799 thousands.
Deutsche Bank
Annual Report 2012
The Summary Board of Directors Report Presented to the General Assembly
27
The Summary Board of Directors
Report Presented to the General
Assembly
As of December 31, 2012, the Bank’s total assets amounted to TL 1,296,966
thousands, decreased by 42% compared to the previous year. The main reason of
the decrease is the decrease in trading financial assets.
Total loans decreased by 28% from TL 531,975 thousands at the end of 2011 to
TL 381,905 thousands by the end of 2012. All loans are short-term.
Total deposits amounted to TL 430,740 thousands at the end of 2012, implying 29%
growth over the TL 334,835 thousands at the end of 2011. This growth was largely
driven by the increase in banks deposits.
Items held in Custody grew by 32% from TL 31,210,449 thousands at the end of
2011 to TL 41,325,502 thousands at the end of 2012.
Off-balance sheet items fell from TL 5,206,197 thousands at the end of 2011 to
TL 3,401,449 thousands at the end of 2012 due to the impact of the decrease in
trading derivative financial instruments.
By the end of 2012, the Bank’s net profit after taxes grew by 225% compared to the
previous year-end to reach TL 104,107 thousands.
The Bank continues to operate at high levels of profitability and strengthens its
equity. The Bank commands a high level of liquidity which is sufficient to meet its
debts, and a capital adequacy standard ratio well in excess of the minimum rate
set by the related regulations.
Information on Dividend Distribution Policy
The allocation and the distribution of the net profit are decided at the Deutsche
Bank A.Ş. shareholders’ Annual General Assembly. Since the Annual General
Assembly concerning the 2012 financial year had not been held as of the date of
this Report, no decision has yet been taken on the distribution of dividends.
In the Bank’s Annual General Assembly held on March 28, 2012, of the TL 32,073
net profit generated in 2011, a total of TL 30,469 was allocated to Extraordinary
Reserves after allocating TL 1,604 into Legal Reserves.
Subsequently, in the Extraordinary General Assembly held on September 27, 2012,
a decision was taken to distribute a dividend of TL 6,414 from the Reserves in
accordance with the allowance by the Banking Regulation and Supervision Agency
dated March 20, 2012.
Deutsche Bank
Annual Report 2012
Human Resources Applications
Related - Party Transactions
28
Human Resources Applications
The training needs of employees are determined with the cooperation of
department managers and Human Resources. In addition to local training and
development programs, the Bank also takes advantage of the global opportunities
presented by Deutsche Bank. Considering development of talents necessitated by
working internationally important, Deutsche Bank offers its employees the services
of domestic and foreign training companies for personal development training as
well as technical training in line with their needs.
Performance evaluation and goal setting are carried out online in computer
environment at certain times of the year. Within this scope, the process continues
with the managers’ feedback after the employee self-evaluations are received.
The results of the performance evaluations are used in career planning and to
determine training and development needs and compensation strategies.
Our “Diversity at Work” week was held between 5th and 9th November, 2012, and
included a meeting concerning intergeneration communication.
As of December 31, 2012, Deutsche Bank A.Ş. had 105 employees. Of the Bank’s
employees, 2% are high school graduates, 65% are university graduates while 33%
hold a Masters and/or a PhD.
Related - Party Transactions
Within the scope of its activities, the Bank enters into various transactions with
Group companies. These transactions are conducted at market prices and for
fully commercial purposes. The resulting profit/loss is reflected in the income
statement.
The related party transactions of Deutsche Bank A.Ş. are reported in detail in the
notes to the financial statements included in this annual report.
The Bank did not take part in any legal transactions with the controlling Company
or with any party related to the controlling Company and/or with the direction of
the controlling Company for the benefit of the controlling Company or its related
parties. Since banking regulations and market conditions are taken into account
as far as the relations with the Group companies are concerned, measures are
neither taken nor specifically avoided to be taken for the benefit of the controlling
Company or its related parties in the past fiscal year.
Deutsche Bank
Annual Report 2012
Outsourced Services
29
Outsourced Services
The business lines and names of the entities that we have procured support
services from in 2012 are listed below pursuant to Regulation on Bank's
Procurement of Support Services.
Outsourcing
Companies
Business Lines of Outsourced Services
Explanation of
the Service
Securverdi Güvenlik
Security
Security services in the office,
Hizmetleri A.Ş.
building and their extensions,
transportation of cash and securities
Akbasım Matbaacılık ve
Operations
The secure and timely printing of
Ticaret Ltd. Şti.
check books in accordance with legal requirements as to form
JCI
Correspondence
Correspondence Services
BİS Çözüm Bigisayar ve Information Systems
Main Banking System
Entegrasyon Hiz. ve Tic. A.Ş.
Global Bilişim Bilgisayar Yazılım
Information Systems
Technical support and maintenanceDanışmanlık San. ve Tic. Ltd. Şti.
EFT/EMKT web interface development
and maintenance
Dataassist Bilgi Teknolojileri A.Ş.
Human Resources
Payroll Services
Manpower İnsan Kaynakları Ltd. Şti.
Human Resources
Human Resources Services
Deutsche Bank AG
Information Systems
Technical support and maintenance
SMARAGD
suspicious activities
Deutsche Bank AG
Information Systems
Technical support and maintenance
Message Broker-Swift interface
Deutsche Bank AG
Information Systems
Technical support and maintenance Support services regarding send/receive procedures of MNT - Swift Messages
BT Bilişim Hizmetleri A.Ş.
Information Systems
Location supply and all infrastructure services for Disaster Recovery Site
Deutsche Bank AG
Operations
Operational support services within the context of Hotscan - Embargo
filtering practices
Deutsche Bank AG
Information Systems
Technical support and maintenance Hotscan - Embargo filtering practices
Deutsche Bank AG
Information Systems Technical support and maintenance - SSR Reconciliation practises - Technical support
and maintenance - ID-Management Management of User Accounts
Deutsche Bank AG
Information Systems
Technical support and maintenance -
Active Directory - ID Management
Deutsche Bank AG
Information Systems
Technical support and maintenance Network Support
Deutsche Bank AG South African Branch, Information Systems
Technical support and maintenance Securities (Pty) Ltd, Auto hedger
Deutsche Securities SA (Pty) Ltd.
Deutsche Bank AG
Information Systems Technical support and maintenance - DAP
Platin S.M.M.M. Ltd. Şti.
Operational Proceedings
Data entry and filing services
Deutsche Bank
Annual Report 2012
Corporate Social Responsibility
30
Deutsche Bank A.Ş. considers corporate social responsibility to be of utmost
importance and priority. The Bank takes a highly sensitive approach to the
production of social responsibility projects and the support of existing projects.
Deutsche Bank A.Ş. is aware of the fact that social responsibility is as important as
providing customer satisfaction, employee motivation and a healthy, efficient and
high-quality working environment.
Donations, support and expenses undertaken by Deutsche Bank A.Ş. within the
framework of corporate social responsibility projects amounted to TL 264,591 in
2012.
Deutsche Bank continues to be a bridge between Germany and Turkey in
terms of developing economic, social and cultural relations: Deutsche Bank
pays great attention to the development of economic, social and cultural relations
between Germany and Turkey. In order to contribute to these long - running
relations between the two countries, the Bank works diligently on the development
of economic, social and cultural projects.
Through the Contribution to the Harmony Project, Deutsche Bank supports Turkish
- German Student Exchange programs as part of Deutsche Bank’s attention on
enhancing the bonds of friendship and long-standing relations between the two
nations, and the Bank seeks to raise awareness among young people of the
differences between the two cultures, while encouraging them to get to know and
understand each other and their family structures.
Deutsche Bank Germany has been organising the traditional annual “Incentive
Tour for Top GMC Clients” meeting for the last eleven years for the senior
managers of its prominent medium scale corporate clients. Due to the importance
that the Bank accords to the development of social and cultural relations between
Germany and Turkey, this meeting has taken place in Istanbul four times over this
period. Those who attended the meetings organized in Istanbul with their families
gained the opportunity to get to know the city’s historical, cultural and natural
beauties and enrich their impressions of Turkey.
The "1st Turkish-German Investment and Cooperation Conference" was organised
in 2010 in Berlin, with Deutsche Bank as the lead sponsor in cooperation with
the Foreign Economic Relations Board (DEIK), the Turkish-German Business
Council and participants including Turkish and German government officials,
and representatives of the business world and media. The Conference proved a
success, and the "2nd Turkish-German Investment and Cooperation Conference"
was held in Berlin in coordination with the DEIK Turkish-German Business Council
in 2011. These relations continued to strengthen in 2012 as well.
Deutsche Bank will continue its studies on developing economic, social and
cultural relations between Germany and Turkey.
Sait Taşcıoğlu Primary School Project:
The “Sait Taşçıoğlu Primary School” project has been ongoing since 2010. As part
of the project, negotiations were conducted with officials to determine the needs
of the school, located in the village of Zerzevatçı in Istanbul’s Beykoz district, and
its pupils in 2012. As part of the Project, which was organised by Deutsche Bank
employees, the necessary approval for renewing the school’s playground was
received and construction of the playground was completed. Various educational
games and events were organised for young pupils of the school on the 23rd April
National Sovereignty and Children’s Day. Moreover, in order to promote reading,
Deutsche Bank employees donated books to the school.
Deutsche Bank
Annual Report 2012
31
International Women’s Day, 8th March:
On International Women’s Day on 8th March, a coffee morning for mothers of
pupils attending the Sait Taşçıoğlu Primary School, located in the Zerzevatçı
Village in Istanbul’s Beykoz district, was organized to underline the importance of
women in our society and their personal development. Mothers who attended the
session had the opportunity to ask the visiting psychologist questions regarding
their children’s development and express their concerns, and found a platform to
share their thoughts and problems.
Van Earthquake Project
In order to heal the wounds of those earthquake victims left homeless by the Van
earthquake which struck in October 2011, Deutsche Bank allocated a budget of
100,000 Euros to construct container homes and provide the necessary furnishings.
A total of 20 containers were installed in the Vizontele and Akdamar prefabricated
towns, and were handed to their new owners after infrastructure studies were
completed. In an effort to help alleviate the pain of earthquake victims, visits
were organised for families living in prefabricated towns and the necessary help
was provided after ascertaining their needs. Moreover, with a well-coordinated
campaign among Deutsche Bank employees tents, food and clothing aid were
provided.
Deutsche Bank provided scholarships to 15 primary school pupils on the
recommendation of the Van Governorship Welfare and Solidarity Foundation.
Deutsche Bank
Annual Report 2012
32
University of California, Berkeley-USA MBA Student Group’s Visit:
In response to a request by the University of California in Berkeley, a presentation
was conducted on the Turkish finance sector at our Bank for a group of MBA
students visiting Istanbul, and information was provided about Deutsche Bank’s
activities in Turkey.
Culture and Arts:
In order to encourage creativity and innovation, Deutsche Bank has been
supporting promising young artists all over the world in the fields of painting and
music for 31 years. The starting point of the Deutsche Bank collection, the largest
and most important corporate art collection in the world, can be considered as
its decisiveness and sensibility in contributing to the development of art. The
corporate collection, expanding since 1945, consists of paintings and photographs.
Deutsche Bank has organised the exhibitions, Habersiz Buluşma (Blind Date)
and Joseph Beuys ve Öğrencileri (Joseph Beuys and His Students) in Istanbul
in previous years. As the sponsor of the ‘1st Contemporary Istanbul and Edge of
Arabia Istanbul: Transition’ exhibition, Deutsche Bank highlighted the importance it
attributes to Istanbul as a bridge between civilizations.
Berlin Philharmonic Orchestra:
Deutsche Bank has supported the Berlin Philharmonic Orchestra since 1989, which
was established as an autonomous assemblage in 1882 and has been accepted as
the most noteworthy musical constitution of our era. In 2002, Deutsche Bank was
the exclusive partner and focused on the education of the talented youngsters.
Deutsche Bank also extended an opportunity to open a digital concert hall as an
innovative initiation in 2009 which would enable the orchestra to reach more
people through the Internet. For the first time in its history, the Berlin Philharmonic
Orchestra performed a concert in Istanbul as part of the Istanbul Culture and
Art Foundation’s 40th anniversary events. Furthermore, the orchestra performed
a concert as part of the 26th International Izmir Fest, which was organised by
the Izmir Culture, Art and Education Foundation. Deutsche Bank believes in the
universality of art, and will continue to closely follow and support young artists
around the world.
We encourage individuals to take responsibility for their own cities:
The “Urban Age” conference and project competition, Deutsche Bank’s forum
for examining the future of metropolitan cities around the world that took place
in Istanbul in 2009, organised by the Alfred Herrhausen Society and the London
School of Economics (LSE), continued in 2012. Through the “Urban Age”
conference and project competition, issues such as the participation in urban life
and taking responsibility in multi-cultural societies were discussed with people
from different environments, workshops were conducted in an effort to encourage
individuals to question the idea of being an urbanite and to take responsibility for
their own cities, as well as following up with award winning projects.
Deutsche Bank
Annual Report 2012
33
Deutsche Bank A.Ş. employees have been implementing their own social
responsibility projects by taking individual responsibility:
Deutsche Bank A.Ş. pays prioritised attention to ensure that its employees
are individuals who are socially and environmentally conscious, sensitive and
prepared to take responsibility. Therefore, employees are encouraged to take
responsibility individually and to carry out their own projects. Deutsche Bank
employees improved their individual projects and worked actively on collecting
waste paper, plastic bags and caps of plastic bottles in an effort to create a more
sustainable environment. Employees also worked on water and energy saving
projects. Deutsche Bank A.Ş. employees, even when they give a special gift to their
loved ones, contribute to people who face financial difficulty, the environment and
education by acting with concern for social responsibility.
Continued support for foundations supporting the environment, women’s
labor and education:
Through the “Dünya Haftası / Earth Week”, which is celebrated between 26th and
31st March in the world and aims to raise awareness of environmental issues,
necessary measures were taken to promote the economical and correct use of
water and energy resources. There were a number of presentations and speeches
during the week, aimed at raising environmental awareness.
Various events were organised in November 2012 across all Deutsche Bank
branches simultaneously as part of “Diversity Week”, which is aimed at creating
awareness and promoting better understanding between individuals.
In a project organised for the Turkish Spinal Chord Paralysis Association,
wheelchairs were provided to two people, to offer them mobility and make their
lives easier.
Handmade gifts, made by women on low incomes who were members of the
Foundation for the Support of Women’s Work, were purchased by Deutsche Bank
employees as new-year gifts. Accordingly, our handcraft products gained a higher
profile, improving the economic freedom of women in our society.
Aid packs under the name of ‘iyilik kutusu (Goodness Boxes)’, prepared by the
Turkish Foundation for Children in Need of Protection, were handed to Deutsche
Bank employees as a gift in Eid al- Fitr and support was provided for the education
of homeless children. Deutsche Bank employees donated books to the Turkish
Foundation for Children in Need of Protection in an effort to encourage reading.
The TEMA foundation presented a tree sapling to Deutsche Bank employees on
their birthdays.
03 -
Financial Assessment and Risk Management
Statutory Auditors’ Report - 35
Report of the Audit Committee - 35
Management Declaration - 37
Audits - 38
Other Information Regarding Corporate Actions - 38
Financial Assessment - 39
Monitoring Targets - 39
Risk Management Policies - 39
Credit Ratings - 41
Summary of Five - Year Financial Highlights - 42
Annual Report Compliance Opinion - 43
Deutsche Bank
Annual Report 2012
03 - Financial Assessment and Risk Management
Statutory Auditors’ Report
Report of the Audit Committee
35
Statutory Auditors’ Report
The transactions and accounts of Deutsche Bank A.Ş. in 2012 were audited by
Statutory Auditors Erdal Hasan Ortaç and Sacit Akdemir in accordance with
Banking Law No. 5411, other applicable legislation and the Bank’s Articles of
Association. The Bank’s balance sheet and income statement were found to be
consistent with the accounting records and the accounting records, in turn, were
found to be in conformity with the underlying documents and records.
Based on their audit, the statutory auditors recommend that the General Assembly
accept the Board of Directors’ proposal to approve the Bank’s 2012 balance sheet
and income statement, and allocate and distribute the net profit of the Bank as
dividend.
The Audit Committee did not observe any adverse occurrences regarding the
Bank’s internal control, internal audit and risk management systems during the
2012 fiscal year. The Committee regularly corresponded with the Bank’s internal
systems department managers, closely monitored the Bank’s risk and operations
and ensured that all measures were taken for timely identification and elimination
of any risk. Regarding the compliance of the Bank’s accounting practices with
the Banking Law No. 5411 and other applicable legislation, the Committee
reviewed the assessments of the independent auditors and did not encounter any
discrepancies.
Our observations and opinions on the Bank’s risk management and
internal control activities are as follows:
Supervision by the Board of Directors and Executive Management: The
Board of Directors consists of experienced members who work actively in the
banking sector, are specialized in various fields of the banking profession and
possess sufficient knowledge on different types of assumed risks, how these risks
occur and how they can be managed.
The Executive Management works in close contact with the Board of Directors, is
knowledgeable and experienced on risk and is capable of utilizing the know-how
and experience of the parent bank, Deutsche Bank AG, in these areas.
Responsibilities regarding continuous risk reporting associated with developments
in the financial markets, risk management practices and the Bank’s operations
have been identified. Risk reporting is performed on a daily basis.
The Board of Directors and the Executive Management monitor the reliability and
functioning of accounting and reporting systems through specialists who are not
users of these systems.
The Board of Directors, Executive Management and the parent company, Deutsche
Bank AG, continuously review risk acceptance limits and implement the necessary
preventive measures in response to changing market conditions.
Deutsche Bank
Annual Report 2012
36
Bank AG, act conscientiously to ensure that the Bank’s business units and business
lines employ personnel who possess the necessary knowledge, experience and
expertise regarding the nature and scope of the tasks being performed.
In addition, employees are offered the opportunity to benefit from the Deutsche
Bank AG specialists, their knowledge and experience.
Through "the Code of Business Conduct and Ethics for Deutsche Bank Group"
document notified to the Deutsche Bank employees during the recruitment process
against signature, the Board of Directors, Executive Management and the main
partner, Deutsche Bank AG, have determined the general rules in order to form the
human resources team to conduct the Bank's activities in a safe and reliable way.
Thus, the necessary measures undertaken to carry out the Bank’s operations in a
safe and reliable manner and to ensure that employees are honest and ethical and
that they behave consistently with the Bank’s prudent management philosophy
and conduct.
Bank AG, monitor all operations of the Bank adequately through various internal
audit and control systems.
Before the Bank embarks on a new line of business or launches a new product,
the Board of Directors, Executive Management and the parent company, Deutsche
Bank AG, require the implementation of New Product Approval and New Business
Approval procedures to assess all potential risk which may arise from such
business or products, and provide the necessary infrastructure and internal
controls for the management of such risk.
The New Product Approval and New Business Approval procedures intend to
overview the adequacy of the Bank’s infrastructure necessary for identifying,
monitoring and controlling the potential risk before embarking on a new operation
or launching a new product.
Risk Management Policies, Implementation Methods and Limits: The
Bank’s risk in trading treasury bills and government bonds has been identified
and policies, implementation methods and limits to measure, monitor and control
these have been established.
These policies, implementation methods and limits are consistent with the level of
experience, goals and objectives and financial strength of Deutsche Bank A.Ş. as
well as of the parent bank, Deutsche Bank AG. Following the determination of risk
policies by Deutsche Bank AG, the Bank Risk Committee evaluates these policies,
adopts those that are appropriate for Deutsche Bank A.Ş. and then submits them
for the approval of the Board of Directors.
Hierarchical structure of the authorities and responsibilities in the Bank’s
operations are set out in the organization chart.
We did not identify any transaction that might result in any significant risk during
2012. The Bank’s risk management and internal control systems are capable of
identifying potential risk in advance.
On behalf of the Audit Committee
Kaya Didman, Chairman
Deutsche Bank
Annual Report 2012
Management Declaration
37
As a result of the assessment made by the Board of Directors of Deutsche Bank
A.Ş. (“Bank”) of the internal controls on information systems and banking
processes for the audit period of January 1, 2012 – December 31, 2012 in terms of
efficiency, adequacy and compliance pursuant to Regulation on Bank Information
Systems and Banking Processes Audit to be Performed by External Audit
Institutions, which became effective on December 31, 2009 and publicly announced
at the Official Gazette on January 13, 2010 with issue no. 27461, by the Banking
Regulation and Supervision Agency and the Circular Letter dated June 30, 2010
with no. B.02.1.BDK.0.77.00.00.010.06.02/3 on “Management Declaration”, which
specifies the particulars of the Management Declaration, preparation of which is
stipulated in Article 33 of the Regulation above, Board of Directors of Deutsche
Bank A.Ş. hereby declares that,
• Board of Directors of our Bank is responsible from establishment and
performance of an efficient, adequate and compliant internal control system
pursuant to Articles 29 and 30 of the Banking Law with no. 5411 and to paragraph
1 of Article 4 of the Regulation on the Internal Systems of the Banks, which was
publicly announced at the Official Gazette of November 1, 2006 with issue no.
26333,
• Internal Control and Internal Audit Units of our Bank performed an examination
on the internal control system for the banking processes included in Article 25 of
the Regulation on Bank Information Systems and Banking Processes Audit to be
Performed by External Audit Institutions and the Information Systems processes
included in Article 24 of the same Regulation and an assessment in order to reveal
all significant control deficiencies regarding this system,
• During the assessment made by the related units of our Bank on the internal
control system, results of the works conducted by the related units of our Bank, not
the results of the works of the external audit institution were used,
• No significant control deficiency was detected on the Internal Control System of
our Bank,
• No significant control deficiency, which may hinder the efficiency, adequacy or
compliance of our internal control system in accordance with the procedures and
principles set forth in the second chapter of the Regulation on the Internal Systems
of the Banks entitled “The Internal Control System” and the Communiqué on
Principles to be Considered in Information Systems Management in Banks, which
was publicly announced at the Official Gazette dated September 14, 2007 with
issue no. 26643, was found,
• As a result of the assessment made on our internal control system, all control
weaknesses and noteworthy control deficiencies detected on our internal control
system are classified and presented to the external auditor in Annex 1, even if they
were corrected by the end of the period,
• No act of misconduct or corruption, which may result in material
misrepresentation in the Financial tables or materially impact the integrity,
consistency, reliability and confidentiality, if and when a need for such
confidentiality arises, of sensitive data of the Bank, especially the financial data,
and continuity of the activities or in which managers, be it of important function
or not, or other employees with critical duties in the internal control system of the
Bank are involved, was detected,
Deutsche Bank
Annual Report 2012
Audits
Other Information Regarding Corporate Actions
38
• Current status of the findings, i.e. whether they are closed or not, determined
in the previous external information systems and banking processes audits
and presented to the bank, closure of which have not yet been approved by the
external auditor are included in the Annex 2,
• Subsequent to the examinations made on our internal control system, changes
in the internal control system or in other issues which may materially impact
the internal control system are presented to the external auditor in Annex 1 in a
way that will include the corrective actions taken by the bank in significant and
noteworthy control deficiencies.
Board of Directors, Deutsche Bank A.Ş.
Audits
During the fiscal period, the Bank underwent financial audit performed by the
Banking Regulation and Supervision Agency (BRSA) and the routine responsibility
audit, which was entrusted by the Financial Crimes Investigation Board, to the
BRSA and the routine responsibility audit, performed by the Central Bank of
Turkey. In addition, independent auditor of the Bank performed quarterly interim
audits and an annual audit.
Other Information Regarding
Corporate Actions
No legal action has been lodged against the Bank that would affect the Bank’s
fiscal position and actions.
The Bank was ordered to pay an administrative fine of TL 185,444 by the BRSA
as a result of inconsistencies found in the Bank’s application of regulations. No
administrative or legal sanctions have been applied against the Bank’s Board of
Directors.
Deutsche Bank
Annual Report 2012
Financial Assessment
Monitoring Targets
Risk Management Policies
39
Financial Assessment
A Higher Capital Adequacy than the Sector Average
Deutsche Bank A.Ş. has a relatively high capital adequacy ratio when compared
to the sector average. On and off-balance sheet foreign currency balances are
managed concurrently. While the securities portfolio held for trading purposes
comprise the majority of the Bank’s assets, the majority of its profit is derived from
interest from securities, capital markets and foreign exchange transactions. Thus,
ratios related to interest income are well below the sector average, whereas total
non-interest income-related ratios are above the average. The Bank’s liquidity
and interest risk are managed diligently by taking into account its capital and
the funding limit set by Deutsche Bank AG, for the risk exceeding a reasonable
amount, by selling forward securities to Deutsche Bank AG, London. The Bank
maintains high levels of liquidity at all times and makes investment decisions
depending on prevailing market conditions.
The Bank’s parent company, Deutsche Bank AG, undertakes that it will fulfill the
contracted responsibilities of Deutsche Bank A.Ş. based on its declaration which
was approved at the General Shareholders and published in its annual report.
An analytical assessment of the financial position is included in the Summary
Report of the Board of Directors to the General Assembly.
Monitoring Targets
The annual budget is set by the Bank’s Board of Directors in line with the targets
and monitoring activities check whether or not operational results are in line with
the budget. As a result of the increase in interest income from marketable
financial assets for the Bank’s own purposes, the net profit exceeded the budgeted
profit.
Decisions taken by General Assembly are fulfilled by the Board of Directors without
exception.
General Policies
Deutsche Bank A.Ş. holds a portfolio including TL treasury bills, government
bonds and private sector bonds for trading purposes, but the Bank does not trade
in the equity market. Deutsche Bank does not extend cash or non-cash corporate
loans with maturities of over 5 years. The Bank has various upper limits on cash
loans, letters of guarantee and commercial letters of credit. Country and sector
concentration limits also apply. The Bank carefully avoids interbank money market
transactions whose maturities are beyond six months.
Deutsche Bank
Annual Report 2012
40
With the exception of banks and institutions with established limits, foreign
currency transactions with banks and institutions are carried out on a “cashagainst-delivery” basis. The Bank’s approval procedures are followed for new
products and business lines. All insurance transactions against operational risks
are coordinated with Deukona. The Disaster Recovery Plan is reviewed and tested
periodically.
Compliance with such policies and limits are monitored on a daily basis. Any form
of violation is reported to the senior management, the relevant department and the
board member responsible for internal systems.
Foreign currency transaction with banks and corporations are conducted on a pay
on delivery basis, although Limit installed banks and corporations are exempted
from this procedure. The Bank carries out approval procedures on new products
and new business branches. Insurance transactions are coordinated with Deukona
for types of operational risk. Reputational risks are discussed and determined
by the Reputational Risk Committee. The Emergency plan is revised and tested
periodically. Policies and limits are monitored on a daily basis; any violation
is reported to the senior management, the relevant department and the board
member responsible for internal systems.
As a result of the decline in interest rates in Turkey during recent years, interest
income earned from loan portfolios has declined to some extent. In order to
compensate for this inevitability, the Bank may consider extending its loan
volumes. In the meantime, the decline in interest rates has allowed the Bank to
report capital gains on its Treasury bills and bonds. Having a high capital adequacy
ratio, the Bank strives to expand its loan portfolio to large corporates in 2013.
There were no studies or reports on early risk identification issues.
Risk Management
The Risk Management Unit is responsible for the Bank-wide implementation
of the standards “regarding the risk-return structure of the Bank’s cash flows
and monitoring, and, where necessary, modifying the nature and level of the
operations” that were devised and brought into effect by the Board of Directors
within the framework of BRSA regulations. In addition, the Risk Management Unit
is also responsible for risk monitoring through the management of information
systems, monitoring and maintaining market risk, credit risk, and operational risk
at a minimum level. The Bank’s risk monitoring exercises and reports include the
risks set out above.
Market Risk
Market risk is the risk that the Bank’s positions may lose value as a result of market
fluctuations. Market risk arises as a result of uncertainties emanating from the
levels of correlation and volatility of market prices and movements in exchange
rates.
Credit Risk
In the event that a debtor defaults and the Bank takes on a loss risk, the credit risk
covers all transactions that could bring actual, conditional or potential demands to
the Bank by another party, debtor or obligator.
Deutsche Bank
Annual Report 2012
Credit Ratings
41
Operational Risk
Operational risk represents the probability of a value loss due to insufficient or
inefficient in-house processes, employee error or systems-related errors and/or
situations outside the bank (together with the legal dimensions). An operational
risk also includes legal risks, tax-related risks and IT systems-related risks. The
Board of Directors state that the controls of the Bank are appropriate in relation
to the risk factors mentioned above, that these risk factors are under control
thanks to bank limits approved by the Board of Directors and that these factors are
monitored closely.
Compliance and Internal Control
The internal control system is regulated in compliance with risk types and levels
emerging in relation to the quality and content of the Bank’s activities.
Internal control activities are subject to continuous examination for one whole
year after the completion of risk evaluation studies. Reports on the findings of the
results are prepared and these findings are rated according to the risks they imply.
Dates are determined for the accomplishment of measures to close the findings.
Any overrun of time is reported to the Audit Committee and the Executive
Management.
Internal Audit
Internal control and information systems are monitored throughout the whole
year, based on risk assessment studies carried out by the Audit Committee.
Furthermore, by taking into account the results of the risk assessment, periodical
audits are also conducted in different areas. Improvements to processes were
carried out in line with the ascertained findings of the audits and suggestions of
ways to enhance the controls were submitted. Furthermore, measures approved
for implementation by the senior management were effectively followed.
As a result, internal audit plays an important role in the mitigation, identification
and management of the bank’s risks through its risk assessed approach and
qualified resources.
Credit Ratings
Deutsche Bank A.Ş. is not rated by rating agencies.
As of December 31, 2012, international rating agencies had attached the following
ratings to the Bank’s parent company, Deutsche Bank AG:
Short - term
Rating
Standard & Poor’s A - 1
Moody’s Investors Service
P - 1
Fitch Ratings
F1 +
Long - term
Rating
Outlook
A +
Negative
A 2
Stable
A +
Stable
Individual
Rating
Abaa2
A
Deutsche Bank
Annual Report 2012
Summary of Five - Year Financial Highlights
42
Summary of Five - Year
Assets (TL 000)
2012
Cash and Balances with the Central Bank
162,344
Trading Securities (Net)
618,241
Derivative Financial Assets Held-for-Trading
861
Banks and Other Financial Institutions
41,691
Receivables from Money Markets
-
Investment Securities Available-for-Sale (Net)
-
381,905
Unconsolidated Subsidiaries (Net)
-
Tangible Assets (Net)
3,442
Intangible Assets (Net)
34,151
Tax Assets
-
Other Assets
54,331
Total Assets
1,296,966
2011
132,773
1,195,014
11,063
112,268
170,100
-
531,975
-
2,532
39,429
4,070
42,796
2,242,020
2010
27,035
348,652
10,745
55,077
2,344,327
-
168,584
-
3,617
45,646
1,254
46,331
3,051,268
2009
27,340
1,103,873
4,773
69,350
469,085
-
68,878
-
4,769
114,085
531
47,585
1,910,269
2008
33,190
245,863
5,755
54,693
50,021
137,141
7,950
128,485
20,524
683,622
2012
430,740
2011
334,835
2010
1,790,087
2009
569,255
2008
277,379
1,065
59,753
236,062
-
-
2,252
525
-
-
51,688
-
514,881
1,296,966
13,832
816,753
608,570
-
-
3,591
5,882
-
17
41,352
-
417,188
2,242,020
13,020
19,783
803,971
-
-
7,353
193
-
283
31,463
-
385,115
3,051,268
2,594
22,341
865,264
-
-
2,958
14
-
984
34,563
-
412,296
1,910,269
6,260
33,287
1,842
17
1,704
26,755
336,428
683,622
Income Statement (TL 000)
2012
2011
2010
2009
Interest Income
301,467
214,384
103,482
54,860
Interest Expense
51,318
55,693
30,727
38,590
Net Interest Income/(Expense)
250,149
158,691
72,755
16,270
Net Fees and Commissions Income/(Expense) 45,105
34,572
21,851
40,805
Net Trading Income/(Loss)
(85,818)
(81,834)
22,188
150,281
Other Operating Income
7,511
6,464
6,966
6,298
Total Operating Profit
216,947
117,893
123,760
213,654
Provision for Losses on Loans or
Other Receivables (-)
1,804
7,263
970
2,354
Other Operating Expenses (-)
84,511
69,201
128,071
76,943
Net Operating Profit/(Loss)
130,632
41,429
(5,281)
134,357
Gain/(Loss) on Net Monetary Position
-
-
-
-
Profit/(Loss) Before Taxes 130,632
41,429
(5,281)
134,357
Provision for Taxes (-)
26,525
9,356
760
28,653
Net Operating Profit/(Loss) after Taxes
104,107
32,073
(6,041)
105,704
Extraordinary Profit/(Loss) After Taxes
-
-
-
-
Net Profit/(Loss)
104,107
32,073
(6,041)
105,704
Debt / Equity Ratio (%)
141.86
427.50
684.13
354.94
2008
98,632
79,694
18,938
22,194
60,011
4,425
105,568
Liabilities (TL 000)
Deposits
Derivative Financial Liabilities
Held-for-Trading
Payables to Money Markets
Funds Borrowed
Securities Issued (Net)
Funds
Miscellaneous Payables
Other External Resources Payable
Factoring Payables
Lease Payables (Net)
Provisions and Tax Liability
Subordinated Loans
Shareholders’ Equity
Total Liabilities
280
62,471
42,817
42,817
8,968
33,849
33,849
95.25
Deutsche Bank
Annual Report 2012
Annual Report Compliance Opinion
43
CONVENIENCE TRANSLATION OF
THE REPORT ON COMPLIANCE OF ANNUAL REPORT
ORIGINALLY PREPARED AND ISSUED IN TURKISH
To the General Assembly of Shareholders of Deutsche Bank A.Ş.:
We have audited the compliance and consistency of the financial information
included in the Annual Report of Deutsche Bank A.Ş. (“the Bank”) as of 31
December 2012 with the audited financial statements. The Annual Report is the
responsibility of the Bank’s management. Our responsibility, as independent
auditors, is to express an opinion about the report that we have audited.
We have conducted our audit in accordance with principles and procedures set
out by the regulations on preparation and issuance of annual report in the Banking
Law No.5411 and independent auditing principles. Those regulations require
that we plan and perform the audit to obtain reasonable assurance whether the
financial information included in the annual report is free from material errors. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial information presented in the accompanying Annual
Report accurately reflects, in all material respects, the information regarding the
financial position of Deutsche Bank A.Ş. at 31 December 2012 in accordance with
the principles and procedures set out by the regulations in conformity with article
40 of the Banking Law No.5411 and includes a summary of the Board of Directors’
report and the convenience translations of independent auditor’s report originally
issued by us in Turkish and is consistent with the convenience translations of
audited financial statements originally issued in Turkish.
Başaran Nas Bağımsız Denetim ve
Serbest Muhasebeci Mali Müşavirlik A.Ş.
a member of
PricewaterhouseCoopers
Zeynep Uras, SMMM
Partner
Istanbul, 8 March 2013
Başaran Nas Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. a member of PricewaterhouseCoopers
BJK Plaza; Süleyman Seba Caddesi No: 48 B Blok Kat 9 Akaretler Beşiktaş 34357 İstanbul – Turkey
www.pwc.com.tr Telephone: +90 (212) 326 6060 Facsimile: +90 (212) 326 6050
04 -
Independent Auditors’ Report, Financial
Statements and Disclosures
Independent Auditors’ Report - 46
Unconsolidated Financial Report - 47
Financial Statements and Disclosures - 50
DEUTSCHE BANK ANONİM ŞİRKETİ
PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL
STATEMENTS TOGETHER WITH INDEPENDENT AUDITOR’S
REPORT AT 31 DECEMBER 2012
Deutsche Bank
Annual Report 2012
46
CONVENIENCE TRANSLATION OF
THE INDEPENDENT AUDITOR’S REPORT
ORIGINALLY PREPARED AND ISSUED IN TURKISH
To the Board of Directors of Deutsche Bank A.Ş.
We have audited the accompanying unconsolidated balance sheet of Deutsche Bank A.Ş. (“the Bank”) at 31 December 2012 and
the related unconsolidated statements of income, cash flows and changes in shareholders’ equity for the period then ended and
a summary of significant accounting policies and other explanatory notes to the financial statements.
Disclosure for the responsibility of the Bank’s Board of Directors:
The Bank’s Board of Directors is responsible for establishing and maintaining effective internal control over financial reporting
to prevent the misstatements caused by error or fraud, that are material to the financial statements; and for selecting and
applying appropriate accounting policies in compliance with the “Regulation on Accounting Applications for Banks and
Safeguarding of Document” published on the Official Gazette No.26333 dated 1 November 2006, Turkish Accounting Standards
(“TAS”), Turkish Financial Reporting Standards (“TFRS”) and other regulations, interpretations and circulars published or
declared by the Banking Regulation and Supervision Agency (the “BRSA”) on accounting and financial reporting principles.
Disclosure for the Responsibility of the Authorized Audit Firm:
Our responsibility, as independent auditors, is to express an opinion on these financial statements based on our audit. Our
independent audit has been implemented in accordance with “Regulation on Authorisation and Activities of Institutions to
Conduct Independent Audit in Banks” published on the Official Gazette No.26333 dated 1 November 2006. We planned and
conducted our audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement.
Our audit includes using the audit techniques for the purpose of obtaining evidence supporting the amounts and disclosures in
the financial statements; the selection of these audit techniques is made in accordance with our professional judgment by taking
the effectiveness of the controls over financial reporting process into consideration and assessing the appropriateness of the
applied accounting policies. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion stated below.
Independent Auditor’s opinion:
In our opinion, the accompanying unconsolidated financial statements present fairly, in all material respects, the financial
position of Deutsche Bank A.Ş. at 31 December 2012 and the results of its operations and its cash flows for the period then
ended in accordance with accounting principles and standards set out by regulations in conformity with article 37 of the Banking
Act No. 5411 and other regulations, communiqués, interpretations and circulars published by the BRSA on accounting and
financial reporting principles.
Additional paragraph for convenience translation:
As explained in Note I of Section Three, the effects of differences between accounting principles and standards set out by
regulations in conformity with Article 37 of Banking Law No. 5411, accounting principles generally accepted in countries in
which the accompanying unconsolidated financial statements are to be distributed and International Financial Reporting
Standards (“IFRS”) have 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.
Başaran Nas Bağımsız Denetim ve
Serbest Muhasebeci Mali Müşavirlik A.Ş.
a member of
PricewaterhouseCoopers
Zeynep Uras, SMMM
Partner
Istanbul, 8 March 2013
Başaran Nas Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. a member of PricewaterhouseCoopers
BJK Plaza; Süleyman Seba Caddesi No: 48 B Blok Kat 9 Akaretler Beşiktaş 34357 İstanbul – Turkey
www.pwc.com.tr Telephone: +90 (212) 326 6060 Facsimile: +90 (212) 326 6050
47
Deutsche Bank
Annual Report 2012
The Unconsolidated
Financial Report of Deutsche Bank A.Ş.
As of 31 December 2012
Bank’s Head Office Address : Eski Büyükdere Cad. Tekfen Tower No: 209
Kat: 17-18 4. Levent 34394 - ISTANBUL
Bank’s Telephone and Fax Numbers : (0212) 317 01 00
: (0212) 317 01 05
Bank’s web address
: www.deutsche-bank.com.tr
E-mail address : [email protected]
The unconsolidated year-end financial report 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
3. EXPLANATIONS ON ACCOUNTING POLICIES
4. INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK
5. EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS
6. OTHER EXPLANATIONS AND NOTES
7. INDEPENDENT AUDITORS’ 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. Unless stated otherwise, the accompanying unconsolidated financial statements are
presented in thousands of Turkish Lira (TL).
Chairman og Board of Directors
Kaya Didman
Chairman of Audit Committee
Paul Antony Geradine
Member of Audit Committee
Ersin Akyüz
General Manager
Özge Kutay
Board Member Responsible from Financial Reporting
Nesrin Akyüz
Finance Manager
Information related with the personnel authorised to answer the questions regarding this financial report
Name-Surname / Title: Nesrin Akyüz / Finance Manager
Tel No: +90 212 317 02 27
Fax No: +90 212 317 01 05
48
Deutsche Bank
Annual Report 2012
SECTION ONE
General Information About The Bank
Page
I.
II.
III. IV.
V.
50
History of the Bank including its incorporation date, initial legal status, amendments to legal status
Bank’s shareholder structure, management and internal audit, direct and indirect shareholders,
change shareholder structure during the year and information’s on Bank’s risk group
Information’s on the Bank’s board of directors’ chairman and members, audit committee members,
general manager, assistant general managers, change in top management and their shareholdings
in the Bank
Information on the Bank’s qualified shareholders
Summary information on the Bank’s activities and services
50
51-52
52
53
SECTION TWO
Unconsolidated Financial Statements
I.
II.
III.
IV.
V.
VI.
VII.
Balance sheet
Off-balance sheet items
Income statement
Statement of Income /Expense items accounted under shareholders’ equity
Statement of changes in equity Statement of cash flows
Statement of profit distribution
54-55
56
57
58
59-60
61
62
SECTION THREE
Explanations On Accounting Policies
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI. XII.
XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
XIX.
XX.
XXI.
XXII.
XXIII.
XXIV.
Explanations and notes basis of presentation
Explanations on strategy of using financial instruments and foreign currency transactions
Informations related to investments in associates and subsidiaries Explanations on forward, options and derivative transactions
Explanations on interest income and expenses
Explanations on fee and commission income and expense
Explanations on financial assets
Explanations on impairment of financial assets
Explanations on offsetting financial assets
Explanations on sales and repurchase agreements and securities lending transactions
Explanations on assets held for resale and discontinued operations
Explanations on goodwill and other intangible assets
Explanations on property and equipment
Explanations on leasing transactions
Explanations on provisions and contingent commitments
Explanations on contingent assets
Explanations on obligations related to employee rights
Explanations on taxation
Explanations on borrowings
Explanations on issuance of share certificates
Explanations on avalized drafts and acceptances
Explanations on government grants
Explanations on profit reserves and profit distribution
Explanations on earnings per share
63
63
63
64
64
64
64-65
65
65
66
66
66
67
67
67
68
68
68-69
69
69
69
69
69
70
49
Deutsche Bank
Annual Report 2012
XXV. Explanations on related parties
XXVI. Explanations on cash and cash equivalents
XXVII. Explanations on segment reporting
XXVIII. Reclassifications
70
70
70
70
SECTION FOUR
Information Related to Financial Position of The Bank
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Explanations on capital adequacy ratio
Explanations on credit risk
Explanations on market risk
Explanations on operational risk
Explanations on currency risk
Explanations on interest rate risk
Explanations on liquidity risk
Explanation regarding the presentation of financial assets and liabilities at their fair values
Explanation regarding the activities carried out on behalf and account of other parties
Explanations on operating segments
70-73
73-77
77-78
79
79-80
81-83
83-87
87-88
88
88
SECTION FIVE
Explanations and Notes Related to Unconsolidated Financial Statements
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
Explanations and notes related to assets
Explanations and notes related to liabilities
Explanations and notes related to off-balance sheet accounts
Explanations and notes related to income statement
Explanations and notes related to changes in shareholders’ equity
Explanations and notes related to statement of cash flows
Explanations and notes related to Bank’s risk group
Explanations and notes related to domestic, foreign off-shore branches and foreign representatives
of the Bank
Subsequent events 89-96
96-101
101-103
103-108
108
108-109
109-112
112
112
SECTION SIX
Other Explanations and Notes
I.
Other explanations related to Bank’s operations 112
SECTION SEVEN
Explanations on Independent Auditor’s Report
I.
II.
Explanations on independent auditor’s report
Explanations and notes prepared by independent auditor 112
112
Deutsche Bank
Annual Report 2012
50
Deutsche Bank Anonim Şirketi
Notes to Unconsolidated Financial Statements
At 31 December 2012
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
SECTION ONE
General Information About The Bank
I. H
istory of the Bank including its incorporation date, initial legal status, amendments to legal status
Deutsche Bank Anonim Şirketi (“the Bank”) was established with Council of Ministers Permit No. 87/12432, dated 16
December 1987. This permit was published in the Official Gazette dated 26 December 1987 and it was registered on 4
April 1988. The “Articles of Association” of the Bank were published in the Trade Registry Gazette on 7 April 1988. The
commercial title of the Bank upon its establishment was “Türk Merchant Bank A.Ş.” which was changed to “Bankers Trust
A.Ş.” on 17 April 1997. After the global merger of Bankers Trust and Deutsche Bank, the Bank’s commercial title has been
changed to “Deutsche Bank Anonim Şirketi” at 1 March 2000. The Bank obtained the permission to accept deposits with
the article numbered 1381 and dated 8 September 2004 of Banking Regulatory and Supervisory Agency (“BRSA”). This
permission became valid after it was published in Official Gazette No. 25614 dated 15 October 2004. The Bank’s head office
is located in Istanbul and has no branches.
II.Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change in shareholder
structure during the year and information on Bank’s risk group
As of 31 December 2012, the Bank’s paid-in capital is comprised of 1.350 million shares whose historical nominal unit
values are TL 0,1. The Bank is one of the group companies of Deutsche Bank Group and 99.99% of the Bank’s capital is
owned by Deutsche Bank AG.
19 years
5 years
Undergraduate: Moscow University International relations
Master: Diplomatic Academy of Vienna,
Diplomatic Relations
Doctorate: Budapest University, Economics
32 years
Undergraduate: Ankara University
Economics and Finance Department Undergraduate: Delhi College of Engineering
Master: Durham University, Management
Auditors
Erdal Hasan Ortaç
27 June 2006
Undergraduate: Istanbul University Academy of Administrative Sciences
Sacit Akdemir
27 June 2006
Undergraduate: Ankara University Faculty
of Political Sciences, Public Administration Assistant General Managers
Hakan Ulutaş
Trade and Custody
18 October 2012
Undergraduate: İstanbul University Services
Management Faculty Master: Marmara University
Science Research and Application Center, Contemporary Business Education Directore
Cenk Esener Corporate Cash Management
18 October 2012
Undergraduate: Eastern Mediterranean
and Foreign Trade
Universy Economics Department
Mustafa Bağrıaçık
Investment 18 October 2012
Undergraduate: İstanbul Technical Banking Services
University Mechanical Engineering
Master: Suffolk University Management /
Boston College Finance
Ali Doğrusöz Technology and Operations
16 December 2002
Undergraduate: North Carolina University
Mechanical Engineering
Master: METU Mechanical Engineering Süleyman Mert Haracçı
Global Markets
28 October 2009
Undergraduate and Master: Marmara University, Finance Department 25 years
40 years
18 years
24 years
18 years
17 years
20 years
Marco Kistner 29 September 2012 Undergraduate: Frankfurt University Bank Management 29 years
Özge Kutay
18 October 2012
Undergraduate: İstanbul University Faculty of Economics and Administrative Science
19 years
Member of Board and Audit
Committee
12 December 2012
Undergraduate: Associate Institute of Chartered Accountants in England and Wales
Master: University of Oxford, Bachelor of
Arts in Modern History
13 years
Members of Board
H.Sedat Eratalar
Internal Systems
2 August 2001
Satvinger Singh
12 July 2012
Miklos Kormos
1 November 2012
21 years
Executive Board Member
Ahmet Arınç
Global Markets 11 September 2002
Undergraduate: College of Wooster,
Economics
24 years
24 years
35 years
Chairman
Peter Johannes Maria Tils 21 November 2012
Undergraduate: Bonn University Political Economics Undergraduate: Bonn University Political Vice Chairman and
Chairman of the Audit Committe
Kaya Didman 27 March 2008
Undergraduate: Boğaziçi University
Faculty of Administrative Sciences,
Management
Executive Board Member
General Manager
Ersin Akyüz
27 February 2008
Undergraduate: London School of Economics
Master: University of Chicago
III.Information on the Bank’s board of directors’ chairman and members, audit committee members, general manager, assistant general managers, change in top
management and their shareholdings in the Bank
Experience in
Banking and
Appointment
Business
Title
Name & Surname
Responsibilities
Date
Education Administration
Notes to Unconsolidated Financial Statements at 31 December 2012
Deutsche Bank
Annual Report 2012
51
52
Deutsche Bank
Annual Report 2012
At 31 December 2012
Changes occured for the period ended 31 December 2012:
Title
Current Year Departures
Chairman
Jürgen Hinrich Fitschen
Board Member
Ralph Glenn Lehnert
Mark Brian Satterthwaite
H. Sedat Eratalar
Assistant General Manager
Özge Kutay
Chairman
Board Member
Board Member
Board Member
Board Member
Board Member
Current Year Appointments
Satvinger Singh
Miklos Kormos
Marco Kistner
Özge Kutay
H. Sedat Eratalar
Cenk Esener
Hakan Ulutaş
Mustafa Bağrıaçık
The top management listed above holds no shares of the Bank.
IV. Information on the Bank’s qualified shareholders
The Bank’s qualified shareholder, which has direct or indirect control power is shown below.
Share
Share
Paid
Name Surname / Commercial Title
Amounts
Ratios
Shares
Deutsche Bank AG
134.999
99,99
134.999
Other
1
0,01
1
Total
135.000
100
135.000
Unpaid
Shares
-
Deutsche Bank
Annual Report 2012
53
At 31 December 2012
V. Summary information on the Bank’s activities and services
Activities of the Bank as stated in its Articles of Association are as follows:
• All banking operations;
•Jointly establishing enterprises with the corporations or individuals, joint ventures, investing to the existing or newly
established commercial and industrial institutions, banks and financial institutions and transferring the shares of those
enterprises;
• Providing commercial and insurance activities on behalf of the Bank or the domestic and foreign institutions, acting as
agencies, and providing commitments to public and non-public entities in compliance with the regulations set by the
Banking Law and the related legislations;
• Purchasing and selling marketable securities on behalf of the Bank or third parties, issuing debt securities by taking
the necessary permissions in accordance with the related legislation, establishing and managing investment funds and
performing other capital market transactions, which are allowed by the Banking Law and operating in stock exchange;
•Performing transactions in foreign currency markets including forward transactions on behalf of the Bank or its’
customers;
•Acquiring intangible assets related with the Bank’s operations and making savings on them;
The Bank, which has been providing investment banking services since its establishment date, has obtained the permission
to accept deposits from BRSA Decision No. 1381 dated 8 September 2004, as a result of the Bank’s growth and investment
policies in Turkey. This permission became into force after it was published in Official Gazette No. 25614 dated 15 October
2004.
The main operations of the Bank are, Interbank Money Market transactions, purchasing and selling marketable securities,
foreign currency transactions, providing collateralised non-cash loans related with commercial activities and custody
services. After obtaining commercial banking licence, in addition to the Bank’s current operations like commercial banking
and money market transactions, the Bank became structured to meet all of the needs of its’ customers by providing
services such as accepting deposits, opening individual accounts and selling cash management products and services,
accordingly.
As of 31 December 2012, the number of employees of the Bank is 105 (31 December 2011: 106).
54
Deutsche Bank
Annual Report 2012
Unconsolidated Balance Sheet (Statement of Financial Position)
At 31 December 2012
SECTION TWO
Unconsolidated Financial Statements
I. BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
ASSETS
Note (5 - I)
TL
Current period
31 December 2012
FC
Total
TL
Prior period
31 December 2011
FC
Total
I.
CASH AND BALANCES
(1)
42.933
119.411
162.344
704
132.069
132.773
WITH THE CENTRAL BANK
II.
FINANCIAL ASSETS AT FAIR VALUE
THROUGH PROFIT/LOSS (Net)
(2)
618.241
861
619.102
1.195.014
11.063 1.206.077
2.1
Trading securities
618.241
861
619.102
1.195.014
11.063 1.206.077
2.1.1 Government debt securities
618.241
-
618.241
1.195.014
- 1.195.014
2.1.2 Share certificates
-
-
-
-
-
2.1.3 Trading derivative instruments
-
861
861
-
11.063
11.063
2.1.4 Other securities
-
-
-
-
-
2.2
Financial assets at fair value
through profit/loss
-
-
-
-
-
-
-
-
-
-
2.2.2 Share certificates
-
-
-
-
-
2.2.3 Loans
-
-
-
-
-
2.2.4 Other securities
-
-
-
-
-
III.
BANKS (3)
38.574
3.117
41.691
47.022
65.246
112.268
IV.
MONEY MARKET PLACEMENTS
-
-
-
170.100
-
170.100
4.1
Interbank money market placements
-
-
-
-
-
4.2
Istanbul Stock Exchange money market placements -
-
-
-
-
4.3
Receivables from reverse repurchase agreements
-
-
-
170.100
-
170.100
V.
AVAILABLE FOR SALE FINANCIAL ASSETS (Net) (4)
-
-
-
-
-
5.1
Share certificates
-
-
-
-
-
5.2
Government debt securities
-
-
-
-
-
5.3
Other securities
-
-
-
-
-
VI.
LOANS AND RECEIVABLES
(5)
263.507
118.398
381.905
182.471
349.504
531.975
6.1
Loans
263.507
118.398
381.905
182.471
349.504
531.975
6.1.1 The Bank's risk group's
loans
-
-
-
-
-
-
-
-
-
-
6.1.3 Others
263.507
118.398
381.905
182.471
349.504
531.975
6.2
Loans at follow-up
-
-
-
-
-
6.3
Specific provisions (-)
-
-
-
-
-
VII.
FACTORING RECEIVABLES
-
-
-
-
-
VIII. HELD TO MATURITY FINANCIAL
ASSETS (Net)
(6)
-
-
-
-
-
8.1
Government bonds
-
-
-
-
-
8.2
Other securities
-
-
-
-
-
IX.
İNVESTMENTS IN ASSOCIATES (Net)
(7)
-
-
-
-
-
9.1
Consolidated according to equity method
-
-
-
-
-
9.2
Non-consolidated
-
-
-
-
-
9.2.1 Financial associates
-
-
-
-
-
9.2.2 Non-Financial associates
-
-
-
-
-
X.
INVESTMENTS IN SUBSIDIARIES (Net)
(8)
-
-
-
-
-
10.1 Non-consolidated financial subsidiaries
-
-
-
-
-
10.2 Non-consolidated non-financial subsidiaries
-
-
-
-
-
XI.
INVESTMENTS IN JOINT
VENTURES (Net)
(9)
-
-
-
-
-
11.1 Consolidated according to equity method
-
-
-
-
-
11.2 Non-consolidated
-
-
-
-
-
11.2.1 Financial joint ventures
-
-
-
-
-
11.2.2 Non-financial joint ventures
-
-
-
-
-
XII.
FINANCIAL LEASE RECEIVABLES (Net)
(10)
-
-
-
-
-
12.1 Financial lease receivables (Net)
-
-
-
-
-
12.2 Operational lease receivables
-
-
-
-
-
12.3 Other
-
-
-
-
-
12.4 Unearned Income (-)
-
-
-
-
-
XIII. DERIVATIVE FINANCIAL INSTRUMENTS
HELD FOR RISK MANAGEMENT
(11)
-
-
-
-
-
13.1 Fair value
hedges
-
-
-
-
-
13.2 Cash flow hedges
-
-
-
-
-
13.3 Net foreign investment
hedges
-
-
-
-
-
XIV. TANGIBLE ASSETS (Net) (12)
3.442
-
3.442
2.532
-
2.532
XV. INTANGIBLE ASSETS (Net)
(13)
34.151
-
34.151
39.429
-
39.429
15.1 Goodwill
-
-
-
-
-
15.2 Other intangibles
34.151
-
34.151
39.429
-
39.429
XVI. INVESTMENT PROPERTY (Net
(14)
-
-
-
-
-
XVII. TAX ASSET (15)
-
-
-
4.070 -
4.070
17.1 Current tax asset
-
-
-
4.070 -
4.070
17.2 Deferred tax asset
-
-
-
-
-
XVIII. ASSETS HELD FOR SALE OR FOR
DISCONTINUED OPERATIONS (Net)
(16)
-
-
-
-
-
18.1 Held for sale
-
-
-
-
-
18.2 Related with discontinued operations
-
-
-
-
-
XIX. OTHER ASSETS
(17)
11.064
43.267
54.331
13.323
29.473
42.796
TOTAL ASSETS
1.011.912
285.054
1.296.966
1.654.665 587.355 2.242.020
The notes between page 13 and 81 are an integral part of these financial statements.
55
Deutsche Bank
Annual Report 2012
Unconsolidated Balance Sheet (Statement of Financial Position)
At 31 December 2012
I. BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) (continued)
LIABILITIES
NOTE (5 - II)
TL
Current period
31 December 2012
FC
Total
Prior period
31 December 2011
TL
FC
Total
I.
DEPOSITS
(1)
321.647
109.093
430.740
198.195
136.640
334.835
1.1
The Bank's risk group's deposits
128.468
29
128.497
26.455
13
26.468
1.2
OTHERS
193.179
109.064
302.243
171.740
136.627
308.367
II.
DERIVATIVE FINANCIAL LIABILITIES
HELD FOR TRADING
(2)
-
1.065
1.065
-
13.832
13.832
III.
FUNDS BORROWED
(3)
880
235.182
236.062
-
608.570
608.570
IV.
INTERBANK MONEY MARKET
59.753
-
59.753
816.753
-
816.753
4.1
Interbank money market funds
-
-
-
-
-
4.2
Istanbul Stock Exchange money market funds
-
-
-
-
-
4.3
Obligations under repurchase agreements
59.753
-
59.753
816.753
-
816.753
V.
SECURITIES ISSUED (Net)
-
-
-
-
-
5.1
Bills
-
-
-
-
-
5.2
Asset backed securities
-
-
-
-
-
5.3
Bonds
-
-
-
-
-
VI.
FUNDS
-
-
-
-
-
6.1
Borrower funds
-
-
-
-
-
6.2
Others
-
-
-
-
-
VII.
MISCELLANEOUS PAYABLES
2.212
40
2.252
2.452
1.139
3.591
VIII.
OTHER EXTERNAL RESOURCES PAYABLE
(4)
284
241
525
1.669
4.213
5.882
IX.
FACTORING PAYABLES
-
-
-
-
-
X.
LEASE PAYABLES (Net)
(5)
-
-
-
-
17
17
10.1 Finance lease payables
-
-
-
-
17
17
10.2 Operational lease payables
-
-
-
-
-
10.3 Others
-
-
-
-
-
10.4 Deferred expenses (-)
-
-
-
-
-
XI.
DERIVATIVE FINANCIAL LIABILITIES
HELD FOR RISK MANAGEMENT
(6)
-
-
-
-
-
11.1 Fair value hedges
-
-
-
-
-
11.2 Cash flow hedges
-
-
-
-
-
11.3 Net foreign investment hedges -
-
-
-
-
XII.
PROVISIONS
(7)
18.719
20.083
38.802
16.748 14.884 31.632
12.1 General provisions
8.408
-
8.408
8.940
-
8.940
12.2 Restructuring reserves
-
-
-
-
-
12.3 Reserve for employee benefits
9.918
5.333
15.251
7.245 5.525
12.770
12.4 Insurance technical provisions (Net)
-
-
-
-
-
12.5 Other provisions
393
14.750
15.143
563
9.359 9.922
XIII.
TAX LIABILITY
(8)
12.886
-
12.886
9.720
-
9.720
13.1 Current tax liability
8.052
-
8.052
4.581
-
4.581
13.2 Deferred tax liability
4.834
-
4.834
5.139 -
5.139
XIV. LIABILITIES FOR ASSETS HELD
FOR SALE AND ASSETS OF
DISCONTINUED OPERATIONS (Net)
(9)
-
-
-
-
-
14.1 Held for sale
-
-
-
-
-
14.2 Discontinued operations
-
-
-
-
-
XV.
SUBORDINATED DEBTS
(10)
-
-
-
-
-
XVI. SHAREHOLDERS' EQUITY
(11)
514.881
-
514.881
417.188 -
417.188
16.1 Paid-in capital
135.000
-
135.000
135.000
-
135.000
16.2 Capital reserves
31.866
-
31.866
31.866
-
31.866
16.2.1 Share premium
-
-
-
-
-
16.2.2 Share cancellation profits
-
-
-
-
-
16.2.3 Securities value increase fund
-
-
-
-
-
16.2.4 Revaluation surplus on tangible assets
-
-
-
-
-
16.2.5 Revaluation surplus on intangible assets -
-
-
-
-
16.2.6 Revaluation surplus on investment property
-
-
-
-
-
16.2.7 Bonus shares of associates, subsidiaries
and joint-ventures
-
-
-
-
-
16.2.8 Hedging reserves (effective portion)
-
-
-
-
-
16.2.9 Revaluation surplus on assets
held for sale and assets of
discontinued operations
-
-
-
-
-
16.2.10 Other capital reserves
31.866
-
31.866
31.866
-
31.866
16.3 Profit reserves
243.908
-
243.908
218.249
-
218.249
16.3.1 Legal reserves
44.138
-
44.138
42.534
-
42.534
16.3.2 Status reserves
-
-
-
-
-
16.3.3 Extraordinary reserves
199.770
-
199.770
175.715
-
175.715
16.3.4 Other profit reserves
-
-
-
-
-
16.4 Profit or loss
104.107
-
104.107
32.073
-
32.073
16.4.1 Prior periods profit / loss
-
-
-
-
-
16.4.2 Current period profit / loss
104.107
-
104.107
32.073
-
32.073
TOTAL LIABILITIES
931.262
365.704
1.296.966
1.462.725 779.295 2.242.020
56
Deutsche Bank
Annual Report 2012
Unconsolidated Off-balance Sheet Commitments
At 31 December 2012
II. OFF-BALANCE SHEET ITEMS
OFF-BALANCE SHEET
Note (5 - III)
TL
Current period
31 December 2012
FC
Total
TL
Prior period
31 December 2011
FC
A.
OFF-BALANCE SHEET COMMITTMENTS (I+II+III)
1.231.739
2.169.710
3.401.449
2.352.118
2.854.079
I.
GUARANTIES AND WARRANTIES
(1)
23.424
288.437
311.861
24.178
381.866
1.1
Letters of guarantee
22.696
214.424
237.120
22.968
256.684
1.1.1 Guarantees subject to State Tender Law -
-
-
-
-
1.1.2 Guarantees given for foreign trade operations
-
-
-
-
-
1.1.3 Other letters of guarantee
22.696
214.424
237.120
22.968
256.684
1.2
Bank acceptances
728
-
728
1.210
-
1.2.1 Import letter of acceptance
728
-
728
1.210
-
1.2.2 Other bank acceptances
-
-
-
-
-
1.3
Letters of credit
-
15.184
15.184
-
75.998
1.3.1 Documentary letters of credit
-
15.184
15.184
-
75.998
1.3.2 Other letters of credit
-
-
-
-
-
1.4
Guaranteed prefinancings
-
-
-
-
-
1.5
Endorsements
-
-
-
-
-
1.5.1 Endorsements to the Central Bank of Turkey
-
-
-
-
-
1.5.2 Other endorsements
-
-
-
-
-
1.6
Underwriting commitments
-
-
-
-
-
1.7
Factoring related guarantees
-
-
-
-
-
1.8
Other guarantees
-
-
-
-
-
1.9
Other sureties
-
58.829
58.829
-
49.184
II.
COMMITMENTS
(1)
837.938
1.149.101
1.987.039
1.367.356
1.142.080
2.1
Irrevocable commitments
750.667
382.185
1.132.852
1.253.435
626.878
2.1.1 Asset purchase commitments
213.497
262.970
476.467
599.107
626.878
2.1.2 Deposit purchase and sales commitments
-
-
-
-
-
2.1.3 Share capital commitments to associates and subsidiaries -
-
-
-
-
2.1.4 Loan granting commitments
537.140
-
537.140
654.328
-
2.1.5 Securities issuance brokerage commitments
-
-
-
-
-
2.1.6 Commitments for reserve deposit requirements
-
-
-
-
-
2.1.7 Commitments for cheque payments
29
-
29
-
-
2.1.8 Tax and fund obligations on export commitments
1
-
1
-
-
2.1.9 Commitments for credit card limits
-
-
-
-
-
2.1.10 Commitments for credit cards and
banking services related promotions
-
-
-
-
-
2.1.11 Receivables from "short" sale commitments on securities
-
-
-
-
-
2.1.12 Payables from "short" sale commitments on securities
-
-
-
-
-
2.1.13 Other irrevocable commitments
-
119.215
119.215
-
-
2.2
Revocable commitments
87.271
766.916
854.187
113.921
515.202
2.2.1 Revocable loan granting commitments
87.271
766.916
854.187
113.921
515.202
2.2.2 Other revocable commitments
-
-
-
-
-
III.
DERIVATIVE FINANCIAL INSTRUMENTS
(2)
370.377
732.172
1.102.549
960.584
1.330.133
3.1
Derivative financial instruments held for risk management
-
-
-
-
-
3.1.1 Fair value hedges
-
-
-
-
-
3.1.2 Cash flow hedges
-
-
-
-
-
3.1.3 Net foreign investment hedges
-
-
-
-
-
3.2
Trading derivatives
370.377
732.172
1.102.549
960.584
1.330.133
3.2.1 Forward foreign currency purchases/sales
126.537
194.995
321.532
232.188
229.916
3.2.1.1 Forward foreign currency purchases
81.385
79.391
160.776
126.668
102.977
3.2.1.2 orward foreign currency sales
45.152
115.604
160.756
105.520
126.939
3.2.2 Currency and interest rate swaps
243.840
537.177
781.017
542.131
819.727
3.2.2.1 Currency swaps-purchases
116.014
274.401
390.415
195.202
486.143
3.2.2.2 Currency swaps-sales
127.826
262.776
390.602
346.929
333.584
3.2.2.3 Interest rate swaps-purchases
-
-
-
-
-
3.2.2.4 Interest rate swaps-sales
-
-
-
-
-
3.2.3 Currency, interest rate and security options
-
-
-
-
-
3.2.3.1 Currency call options
-
-
-
-
-
3.2.3.2 Currency put options
-
-
-
-
-
3.2.3.3 Interest rate call options
-
-
-
-
-
3.2.3.4 Interest rate put options
-
-
-
-
-
3.2.3.5 Security call options
-
-
-
-
-
3.2.3.6 Security put options
-
-
-
-
-
3.2.4 Currency futures
-
-
-
186.265
280.490
3.2.4.1 Currency futures-purchases
-
-
-
74.229
158.956
3.2.4.2 Currency futures-sales
-
-
-
112.036
121.534
3.2.5 Interest rate futures
-
-
-
-
-
3.2.5.1 Interest rate futures-purchases
-
-
-
-
-
3.2.5.2 Interest rate futures-sales
-
-
-
-
-
3.2.6 Others
-
-
-
-
-
B.
CUSTODY AND PLEDGED ITEMS (IV+V+VI) 41.302.841
22.661
41.325.502
31.175.108
35.341
IV.
ITEMS HELD IN CUSTODY
(5) 41.302.841
22.661
41.325.502
31.175.108
35.341
4.1
Customers' securities held 34.644.667
-
34.644.667
25.686.047
-
4.2
Investment securities held in custody
6.642.063
-
6.642.063
5.458.762
-
4.3
Checks received for collection
16.111
4.835
20.946
30.299
16.276
4.4
Commercial notes received for collection
-
-
-
-
-
4.5
Other assets received for collection
-
-
-
-
-
4.6
Assets received through public offering
-
-
-
-
-
4.7
Other items under custody
-
17.826
17.826
-
19.065
4.8
Custodians
-
-
-
-
-
V.
PLEDGED ITEMS
-
-
-
-
-
5.1
Securities
-
-
-
-
-
5.2
Guarantee notes
-
-
-
-
-
5.3
Commodities
-
-
-
-
-
5.4
Warranties
-
-
-
-
-
5.5
Real estates
-
-
-
-
-
5.6
Other pledged items
-
-
-
-
-
5.7
Pledged items-depository
-
-
-
-
-
VI.
CONFIRMED BILLS OF EXCHANGE AND SURETIES
-
-
-
-
-
TOTAL OFF-BALANCE SHEET ITEMS (A+B) 42.534.580
2.192.371
44.726.951
33.527.226
2.889.420
Total
5.206.197
406.044
279.652
279.652
1.210
1.210
75.998
75.998
49.184
2.509.436
1.880.313
1.225.985
654.328
629.123
629.123
2.290.717
2.290.717
462.104
229.645
232.459
1.361.858
681.345
680.513
466.755
233.185
233.570
31.210.449
31.210.449
25.686.047
5.458.762
46.575
19.065
36.416.646
Deutsche Bank
Annual Report 2012
57
Unconsolidated Income Statement for the Years Ended
31 December 2012 and 2011
III. INCOME STATEMENT
1 January -
1 January INCOME AND EXPENSE ITEMS
Notes (5 - IV) 31 December 2012 31 December 2011
I. INTEREST INCOME
(1)
301.467
1.1 Interest income from loans
28.598
1.2 Interest income from reserve deposits
-
1.3 Interest income from banks
9.847
1.4 Interest income from money market transactions
34.670
1.5 Interest income from securities portfolio
227.955
1.5.1 Trading financial assets
227.955
1.5.2 Financial assets valued at fair value through profit or loss
-
1.5.3 Financial assets available-for-sale
-
1.5.4 Investments held-to-maturity
-
1.6 Finance lease income
-
1.7 Other interest income
397
II.
INTEREST EXPENSE
(2)
51.318
2.1 Interest on deposits
11.943
2.2 Interest on funds borrowed
2.513
2.3 Interest on money market transactions
36.825
2.4 Interest on securities issued
-
2.5 Other interest expenses
37
III. NET INTEREST INCOME / EXPENSE (I - II)
250.149
IV. NET FEES AND COMMISSIONS INCOME / EXPENSE
45.105
4.1 Fees and commissions received
54.222
4.1.1 Non-cash loans
1.668
4.1.2 Others 52.554
4.2 Fees and commissions paid
9.117
4.2.1 Non-cash loans
-
4.2.2 Others
9.117
V. DIVIDEND INCOME
(3)
-
VI. NET TRADING INCOME/LOSSES (Net)
(4)
(85.818)
6.1 Trading account income/losses
(36.730)
6.2 Income/losses from derivative financial instruments
(53.951)
6.3 Foreign exchange gains/losses
4.863
VII. OTHER OPERATING INCOME
(5)
7.511
VIII. TOTAL OPERATING PROFIT (III+IV+V+VI+VII)
216.947
IX. PROVISION FOR LOSSES ON LOANS AND RECEIVABLES (-)
(6)
1.804
X. OTHER OPERATING EXPENSES (-)
(7)
84.511
XI. NET OPERATING PROFIT/LOSS (VIII-IX-X)
130.632
XII. INCOME RESULTED FROM MERGERS
-
XIII. INCOME/LOSS FROM INVESTMENTS UNDER EQUITY ACCOUNTING
-
XIV GAIN/LOSS ON NET MONETARY POSITION
-
XV. PROFIT/LOSS BEFORE TAXES (XI+XII+XIII+XIV)
(8)
130.632
XVI. PROVISION FOR TAXES
(9)
26.525
16.1 Current tax charge
26.830
16.2 Deferred tax charge/(credit)
(305)
XVII. NET OPERATING PROFIT/LOSS AFTER TAXES (XV-XVI)
(10)
104.107
XVIII.INCOME FROM DISCONTINUED OPERATIONS
-
18.1 Income from assets held for sale
-
18.2 Income from sale of associates, subsidiaries and joint-ventures
-
18.3 Others
-
XIX. EXPENSES FROM DISCONTINUED OPERATIONS (-)
-
19.1 Expenses on assets held for sale
-
19.2 Expenses on sale of associates, subsidiaries and joint-ventures
-
19.3 Others
-
XX. PROFIT/LOSS BEFORE TAXES ON DISCONTINUED OPERATIONS (XVIII-XIX)
-
XXI. PROVISION FOR TAXES OF DISCONTINUED OPERATIONS
-
21.1 Current tax charge
-
21.2 Deferred tax charge/(credit)
-
XXII. NET PROFIT / LOSS AFTER TAXES ON DISCONTINUED OPERATIONS (XX+XXI)
-
XVIII.NET PERIOD PROFIT/LOSS (XVII+XXII)
(11)
104.107
Earnings Per Share (TL Full)
0,077116
214.384
13.258
8.124
62.712
129.960
129.960
330
55.693
8.833
11.187
35.656
17
158.691
34.572
42.927
1.114
41.813
8.355
8.355
(81.834)
(44.315)
80.637
(118.156)
6.464
117.893
7.263
69.201
41.429
41.429
9.356
6.373
2.983
32.073
32.073
0,02376
INCOME/EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS' EQUITY
31 December 2012
I.
MARKET VALUE GAINS ON AVAILABLE FOR SALE ASSETS ACCOUNTED UNDER "SECURITIES VALUE INCREASE FUND"
-
II.
REVALUATION SURPLUS ON TANGIBLE ASSETS
-
III.
REVALUATION SURPLUS ON INTANGIBLE ASSETS
-
IV.
TRANSLATION DIFFERENCES FOR TRANSACTIONS IN FOREIGN CURRENCIES
-
V.
GAIN/LOSS ON DERIVATIVE FINANCIAL ASSETS HELD FOR CASH FLOW HEDGES (effective portion)
-
VI.
GAIN/LOSS ON DERIVATIVE FINANCIAL ASSETS HELD FOR HEDGES OF NET INVESTMENT IN FOREIGN OPERATIONS (effective portion)
-
VII.
EFFECTS OF CHANGES IN ACCOUNTING POLICIES AND CORRECTIONS
-
VIII. OTHER INCOME/EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS' EQUITY AS PER TAS
-
IX.
DEFERRED TAXES ON VALUE INCREASES/DECREASES
-
X.
NET INCOME/EXPENSE ITEMS ACCOUNTED DIRECTLY UNDER SHAREHOLDERS' EQUITY (I+II+III+IV+V+VI+VII+VIII+IX)
-
XI.
CURRENT PROFIT/LOSSES
-
11.1 Net changes in fair value of securities (transferred to income statement)
-
11.2 Gains/losses on derivative financial assets held for cash flow hedges, reclassified and recorded in income statement
-
11.3 Gains/losses on hedges of net investment in foreign operations, reclassified and recorded in income statement
-
11.4 Others
-
XII.
TOTAL PROFIT/LOSS ACCOUNTED FOR THE CURRENT PERIOD (X+XI)
-
IV. STATEMENT OF INCOME/EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS’ EQUITY
Unconsolidated Statement of Income and Expense Items Accounted in Equity
For the Years Ended 31 December 2012 and 2011
-
-
31 December 2011
Deutsche Bank
Annual Report 2012
58
V.
STATEMENT OF CHANGES IN EQUITY
Accumulated
revaluation
Revaluation Bonus
reserve on
Paid-in
Current
Prior Valuation surplus on shares asset held for
capital
Share period net period net changes in tangible and
on
resale and
Paid-in
inflation
Share cancellation
Legal
Status Extraordinary
Other income / income / marketable intangible partici- Hedging discountinued
1 January 2011 - 31 December 2011
Notes capital adjustment premium
profits reserves reserves
reserves reserves
(loss)
(loss) securities
assets pations reserves
operationa Total
I.
Balance at the beginning of the period
v.1 135.000
31.866
-
- 42.534
-
181.756
-
(6.041)
-
-
-
-
-
- 385.115
II.
Correction made as per TAS 8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.1
Effect of adjustment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.2
Effect of changes in accounting policies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
III.
Adjusted balances at the beginning
of the period (I+II) 135.000
31.866
-
- 42.534
-
181.756
-
(6.041)
-
-
-
-
-
- 385.115
Changes within the period
IV.
Mergers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
V.
Market value change of securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VI.
Hedging reserves (effective portion)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6.1
Cash flow hedge
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6.2
Hedge of net investment in foreign operations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VII.
Revaluation surplus on tangible assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VIII. Revaluation surplus on intangible assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
IX.
Bonus shares of associates, subsidiaries and
joint ventures (business partners)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
X.
Translation differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XI.
Changes resulted from
disposal of securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XII.
Changes resulted from reclassification
of securities -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIII. Effect of changes in equities of associates
on bank's equity
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIV. Increase in capital
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14.1 Cash
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14.2 Internal resources
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XV.
Share issuance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVI. Share cancellation profits
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVII. Paid-in capital inflation adjustment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVIII. Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIX. Net profit or losses of the period
-
-
-
-
-
-
-
-
32.073
-
-
-
-
-
-
32.073
XX.
Profit distribution
-
-
-
-
-
-
(6.041)
-
6.041
-
-
-
-
-
-
20.1 Dividend distributed
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20.2 Transfers to reserves
-
-
-
-
-
-
(6.041)
-
6.041
-
-
-
-
-
-
20.3 Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balances (III+IV+V +...+XVIII+XIX+XX) 135.000
31.866
-
- 42.534
-
175.715
-
32.073
-
-
-
-
-
- 417.188
Unconsolidated Statement of Changes in Shareholders’ Equity
For the Year Ended 31 December 2012
Deutsche Bank
Annual Report 2012
59
Total
Balances at end of prior period
v.1 135.000
31.866
-
- 42.534
-
175.715
-
32.073
-
-
-
-
-
- 417.188
Changes within the period
Mergers
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Market value change of securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Hedging reserves (effective portion)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Cash flow hedge
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Hedge of net investment in foreign operations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Revaluation surplus on tangible assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Revaluation surplus on intangible assets -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bonus shares of associates, subsidiaries and
joint ventures (business partners)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Translation differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Changes resulted from disposal of securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Changes resulted from reclassification of securities -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Effect of changes in equities of associates
on bank's equity
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Increase in capital
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Cash
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Internal resources
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share issuance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share cancellation profits
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Paid-in capital inflation adjustment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Net profit or losses of the period
-
-
-
-
-
-
-
- 104.107
-
-
-
-
-
- 104.107
Profit Distribution
-
-
-
-
1.604
-
24.055
- (32.073)
-
-
-
-
-
- (6.414)
Dividend distributed
-
-
-
-
-
-
(6.414)
-
-
-
-
-
-
-
- (6.414)
Transfers to reserves
-
-
-
-
1.604
-
30.469
- (32.073)
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Closing balances (I+II+III+...+XVI+XVII+XVIII) 135.000
31.866
-
- 44.138
-
199.770
- 104.107
-
-
-
-
-
- 514.881
I.
II.
III.
IV.
4.1
4.2
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
12.1
12.2
XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
18.1
18.2
18.3
Accumulated
revaluation
Revaluation Bonus
reserve on
Paid-in Current
Prior Valuation surplus on shares asset held for
capital
Shareperiod net period net changes in tangible and
on
resale and
Paid-in
inflation
Share cancellation
Legal Status Extraordinary
Other income / income / marketable intangible partici- Hedging discountinued
1 January 2012 - 31 December 2012
Notes capital adjustment premium
profits reserves reserves
reserves reserves
(loss)
(loss) securities
assets pations reserves operationa V.STATEMENT OF CHANGES IN EQUITY
Unconsolidated Statement of Changes in Shareholders’ Equity
For the Year Ended 31 December 2012
Deutsche Bank
Annual Report 2012
60
61
Deutsche Bank
Annual Report 2012
Unconsolidated Statement of Cash Flows
For the Years Ended 31 December 2012 and 2011
VI. STATEMENT OF CASH FLOWS
31 December 2012
31 December 2011
A.
CASH FLOWS FROM BANKING OPERATIONS
1.1
Operating profit before changes in operating assets and liabilities
131.841
22.477
1.1.1 Interests received
306.858
212.378
1.1.2 Interests paid
(52.596)
(56.857)
1.1.3 Dividend received
-
1.1.4 Fees and commissions received
54.222
42.927
1.1.5 Other income
7.511
6.463
1.1.6 Collections from previously written-off loans and receivables
-
1.1.7 Payments to personnel and service suppliers
(25.116)
(22.995)
1.1.8 Taxes paid
(19.289)
(6.452)
1.1.9 Others
(139.749)
(152.987)
1.2
Changes in operating assets and liabilities
(264.621)
(2.164.657)
1.2.1 Net (increase) decrease in financial assets held for trading
574.231
(846.998)
1.2.2 Net (increase) decrease in financial assets valued at fair value through profit or loss
-
1.2.3 Net (increase) decrease in due from banks and other financial institutions
59.937
(112.523)
1.2.4 Net (increase) decrease in loans
147.221
(361.553)
1.2.5 Net (increase) decrease in other assets
(7.111)
4.856
1.2.6 Net increase (decrease) in bank deposits
58.900
(1.454.089)
1.2.7 Net increase (decrease) in other deposits
37.002
796.970
1.2.8 Net increase (decrease) in funds borrowed
(371.850)
(195.401)
1.2.9 Net increase (decrease) in matured payables
-
1.2.10 Net increase (decrease) in other liabilities
(762.951)
4.081
I.
Net cash used in banking operations
(132.780)
(2.142.180)
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
Net cash used in investing activities
(4.980)
(2.373)
2.1
Cash paid for purchase of associates, subsidiaries and joint-ventures
-
2.2
Cash obtained from sale of associates, subsidiaries and joint-ventures
-
2.3
Purchases of tangible assets
(2.347)
(856)
2.4
Sales of tangible assets
-
2.5
Cash paid for purchase of financial assets available-for-sale -
2.6
Cash obtained from sale of financial assets available-for-sale
-
2.7
Cash paid for purchase of investments held-to-maturity
-
2.8
Cash obtained from sale of investments held-to-maturity
-
2.9
Others
(2.633)
(1.517)
C. CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net cash used in financing activities (6.431)
3.1
Cash obtained from funds borrowed and securities issued
-
3.2
Cash used for repayment of funds borrowed and securities issued
-
3.3
Equity instruments issued
-
3.4
Dividends paid
(6.414)
3.5
Payments for financial leases
(17)
3.6
Others
-
-
IV.
Effect of change in foreign exchange rate on cash and cash equivalents
(6.856)
24.940
V.
Net decrease in cash and cash equivalents
(151.047)
(2.119.613)
VI.
Cash and cash equivalents at beginning of period 291.525
2.411.138
VII.
Cash and cash equivalents at the end of period 140.478
291.525
Deutsche Bank
Annual Report 2012
62
Statement of Profit Distribution for the Years Ended
31 December 2012 and 2011
VII. STATEMENTS OF PROFIT DISTRIBUTION
(*)
Current period Prior period
31 December 2012
31 December 2011
I.
DISTRIBUTION OF CURRENT YEAR INCOME
1.1 CURRENT YEAR INCOME
130.632
41.429
1.2 TAXES AND DUTIES PAYABLE
(26.525)
(9.356)
1.2.1 Corporate tax (Income tax)
(26.830)
(6.373)
1.2.2 Income witholding tax
-
305
(2.983)
1.2.3 Other taxes and duties (**)
A.
NET INCOME FOR THE YEAR (1.1-1.2) 104.107
32.073
1.3 PRIOR YEARS LOSSES (-)
-
1.4 FIRST LEGAL RESERVES (-)
-
(1.604)
1.5 OTHER STATUTORY RESERVES (-)
-
B.
NET INCOME AVAILABLE FOR DISTRIBUTION [(A-(1.3+1.4+1.5)]
-
30.469
1.6 FIRST DIVIDEND TO SHAREHOLDERS (-)
-
6.414
1.6.1 To owners of ordinary shares
-
6.414
1.6.2 To owners of preferred shares
-
1.6.3 To owners of preferred shares (preemptive rights)
-
1.6.4 To profit sharing bonds
-
1.6.5 To holders of profit and loss sharing certificates
-
1.7 DIVIDENDS TO PERSONNEL (-)
-
1.8 DIVIDENDS TO BOARD OF DIRECTORS (-)
-
1.9 SECOND DIVIDEND TO SHAREHOLDERS (-)
-
-
-
-
-
-
1.10 SECOND LEGAL RESERVES (-)
-
1.11 STATUTORY RESERVES (-) -
1.12 GENERAL RESERVES -
24.055
1.13 OTHER RESERVES
-
1.14 SPECIAL FUNDS
-
II.
DISTRIBUTION OF RESERVES
2.1 APPROPRIATED RESERVES
-
2.2 SECOND LEGAL RESERVES (-)
-
2.3 DIVIDENDS TO SHAREHOLDERS (-)
-
-
-
-
-
-
2.4 DIVIDENDS TO PERSONNEL (-)
-
2.5 DIVIDENDS TO BOARD OF DIRECTORS (-)
-
III.
EARNINGS PER SHARE
3.1 TO OWNERS OF ORDINARY SHARES 0,077
0,024
3.2 TO OWNERS OF ORDINARY SHARES (%)
7,7
2,4
3.3 TO OWNERS OF PRIVILAGED SHARES
-
3.4 TO OWNERS OF PRIVILAGED SHARES (%)
-
IV.
DIVIDEND PER SHARE
4.1 TO OWNERS OF ORDINARY SHARES
-
0,005
4.2 TO OWNERS OF ORDINARY SHARES (%)
-
0,5
4.3 TO OWNERS OF PRIVILAGED SHARES
-
4.4 TO OWNERS OF PRIVILAGED SHARES (%)
-
(*)
As of the date of this report the decision of profit distribution in the current year has not been made since the General
Assembly meeting has not conducted yet.
(**)
According to BRSA circular numbered BDDK.DZM.2/13/1-a-3 and dated 8 December 2004 net deferred tax income is not
subjected to profit distribution and capital increase.
Deutsche Bank
Annual Report 2012
63
At 31 December 2012
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
I. Basis of presentation
1.aDisclosures 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 Bank maintains its books of accounts in Turkish Lira in accordance with the Banking Act No. 5411 (“Banking Act”),
which is effective from 1 November 2005, the Turkish Commercial Code and Turkish tax legislation.
The unconsolidated financial statements are prepared in accordance with the “Regulation on the Principles and Procedures
Regarding Banks’ Accounting Applications and Safeguarding of Documents” published in the Official Gazette No. 26333
dated 1 November 2006 by the Banking Regulation and Supervision Agency (“BRSA”) which refers to “Turkish Accounting
Standards” (“TAS”) and “Turkish Financial Reporting Standards”(“TFRS”) issued by the Turkish Accounting Standards
Board (“TASB”) and other decrees, notes and explanations related to the accounting and financial reporting principles
(all “Turkish Accounting Standards” or “TAS” ) published by the BRSA. The format and the details of the publicly
announced financial statements and related disclosures to these statements have been prepared in accordance with the
“Communiqués Related to Publicly Announced Financial Statements of Banks and Explanations and Notes Related to these
Financial Statements” published in the Official Gazette No. 28337 dated 28 June 2012.
The unconsolidated financial statements have been prepared in TL, under the historical cost convention as modified in
accordance with inflation adjustments until 31 December 2004, except for the financial assets and liabilities which are
carried at fair value.
The preparation of unconsolidated financial statements in conformity with TAS requires the use of certain critical
accounting estimates by the Bank management to exercise its judgment on the assets and liabilities of the balance sheet
and contingent issues as of the balance sheet date. These estimates are being reviewed regularly and, when necessary,
suitable corrections are made and the effects of these corrections are reflected to the income statement. The explanation
on the impairment of intangible assets, one of the most important assumptions and estimations of the Bank, is presented
below Note XII.
1.b Accounting policies and measurement
The accounting policies and valuation principles applied in the preparation of these financial statements and valuation
principles are defined and applied in accordance with TAS. Those accounting policies and valuation principles are
explained in Notes II to XXVIII below.
1.c Additional paragraph for convenience translation into English
The differences between accounting principles, as described in the preceding paragraphs and accounting principles
generally accepted in countries in which these unconsolidated financial statements are to be distributed and International
Financial Reporting Standards (“IFRS”) have not been quantified in these unconsolidated financial statements. Accordingly,
these 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.
II.Explanations on strategy of using financial instruments and foreign currency transactions
The main operations of the Bank are, interbank money market transactions, purchasing and selling marketable securities,
foreign currency transactions and providing collateralised cash, non-cash loans and custody services.
The Bank’s main funding sources are shareholders’ equity, deposit and borrowings from domestic and foreign financial
institutions. Bank’s assets mainly consist of placements in banks, reverse repo transactions, corporate loans and
marketable securities portfolio held for trading.
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, letter of credits and letter of guarantees extended against cash
borrowings from foreign financial institutions.
Deutsche Bank
Annual Report 2012
64
At 31 December 2012
Foreign currency risk, interest rate risk and liquidity risk are daily measured and monitored and the asset-liability
management is performed within the internal risk limits and legal limits. Stress tests are used for this purpose.
The Bank has no foreign currency available for sale financial instruments.
The Bank has no investments in foreign associates.
III. Information related to investments in associates and subsidiaries
The Bank has no investments in associates and subsidiaries.
IV. Explanations on forward, options and other derivative transactions
In accordance with the Turkish Accounting Standard 39 (TAS 39) “Financial Instruments: Recognition and Measurement”;
the forward foreign currency purchases/sales transactions and swap transactions, which are not considered as hedging
instruments, are classified as trading derivative instruments. A provision is made for the diminution in value of the
impaired financial asset and it is charged against the income for the year.
“Financial assets at fair value through profit or loss” are measured at fair value. If the fair value of derivative financial
instruments is positive, it is disclosed under the main account “Financial assets at fair value through profit or loss” in
“Trading derivative financial instruments” and if the fair value difference is negative, it is disclosed under “Trading
derivative financial liabilities”. Differences in the fair value of trading derivative instruments are accounted under “Trading
income/loss” in the income statement.
The fair values of the trading forward foreign currency purchases/sales transactions are measured with the internal pricing
models by taking the expectations from the market into account. The change in the fair values is recorded through the
period’s profit or loss.
The Bank records the spot legs of its currency swap transactions either on its balance sheet accounts or on it’s off balance
sheet accounts together with its forward currency transactions by taking the maturity dates of those transactions.
The Bank has no derivative financial instruments designated as hedging instruments or embedded derivative financial
instruments.
V. Explanations on interest income and expenses
Interest income and expenses are recognised in the income statement on an accrual basis by using the effective interest
method.
The Bank ceases accruing interest income on non-performing loans and, any interest income accruals from such loans are
reversed and no income is accounted until the collection is made according to the related regulation.
VI. Explanations on fee and commission income and expense
Commissions received for various banking services are recorded when they are collected and other income and expense
items are recorded on an accrual basis. Fees and commissions received and paid and other loan fees and commissions
paid to financial institutions, income derived from agreements and asset purchases made on behalf of third parties are
recognised as income when they are realised.
VII. Explanation on financial assets
The Bank classifies and accounts its financial assets as “Fair value through profit or loss”, “Available-for-sale”, “Loans and
receivables” or “Held-to-maturity”. The appropriate classification of financial assets of the Bank is determined at the time
of purchase by the Bank management, taking into consideration the purpose of holding the investment.
The purchase and sale transactions of those financial instruments are recognised and derecognised according to their
“Delivery dates”. The fair value differences between the transaction date and the delivery date of financial assets and
liabilities at fair value through profit or loss and financial assets available for sale are recorded.
a. Financial assets at fair value through profit or loss
Financial assets, classified as “Financial assets at fair value through profit or loss”, are trading financial assets and are
either acquired for generating profit from short-term fluctuations in the price or dealer’s margin, or are financial assets
included in a portfolio in which a pattern of short-term profit making exists independent from the acquisition purpose.
Deutsche Bank
Annual Report 2012
65
At 31 December 2012
Trading financial assets are initially recognised at fair value and are subsequently re-measured at their fair value. However,
if fair values cannot be obtained from the fair market transactions, it is accepted that the fair value cannot be measured
reliably and that the financial assets are carried at “amortised cost” using the effective interest method.
All gains and losses arising from these evaluations are recognised in the income statement. Interest earned while holding
financial assets is reported as interest income and dividends received are included separately in dividend income.
Derivative financial instruments are treated as trading financial assets unless they are not designated as hedge instruments.
The principles regarding the accounting of derivative financial instruments are explained in detail in Note IV of the related
section.
The difference between the cost values and fair values of the financial assets at fair value through profit or loss, is recorded
as accrued interest income or allowance for the impairment loss.
b. Loans and receivables
Loans and receivables are financial assets which are created by providing money, services or goods to a debtor. Loans
and receivables originated by the Bank are carried initially at cost and subsequently recognised at the amortised cost
value calculated using the effective interest method. The expenses incurred for the assets received as collateral are not
considered as transaction costs and are recognised in the expense accounts.
The Bank provides general and specific provisions based on the assessments and estimates of the management, by
considering the “Communiqué Related to Principles and Procedures on Determining the Qualifications of Banks’ Loans and
Other Receivables and the Provision for These Loans and Other Receivables” published in the Official Gazette No. 26333
dated 1 November 2006. In this context, the revised credit risk, general structure of the current loan portfolio, conditions of
the customers, non-financial information and economic conjuncture on the basis of the prudence principle are taken into
consideration by the Bank in determining the estimates.
Provision expenses are deducted from the net income of the year. If there is a collection from a receivable that is
provisioned previously, the amount is deducted from the “Specific Provisions” account and recorded as income to
“Provision for Loan Losses and Other Receivables”. Uncollectible receivables are written-off after all the legal procedures
have been finalised.
Cash loans in Turkish Lira are comprised of the foreign currency indexed loans, export guaranteed loans, fund resourced
loans and cash loans in foreign currency are comprised of the export loans and operating loans.
Foreign currency indexed loans are followed under the TL accounts by translating its original amount to TL by using the
historical foreign exchange rate of its opening date. Repayments are calculated with the foreign exchange rate on the
payment date and the incurred foreign exchange gains/losses are recorded through the period’s profit or loss.
c. Held-to-maturity financial assets
The Bank has no held-to-maturity financial assets.
d. Available-for-sale financial assets
The Bank has no available-for-sale financial assets.
VIII. Explanations on impairment of financial assets
Financial asset or group of financial assets are reviewed at each balance sheet date to determine whether there is objective
evidence of impairment. If any such indication exists, the Bank estimates the amount of impairment.
Impairment losses occurs if, and only if, there is an objective evidence that the expected future cash flows of financial asset
or group of financial assets are adversely affected by an event(s) (“loss event(s)”) incurred subsequent to recognition. The
losses expected to incur due to future events are not recognised even if the probability of loss is high.
IX. Explanations on offsetting financial assets
The Bank provides allowance for the impairment losses on the financial assets at fair value through profit or loss, when the
fair values are less than their carrying values. This allowance is netted from the carrying value of the related financial assets
group on the balance sheet.
Deutsche Bank
Annual Report 2012
66
At 31 December 2012
The Bank provides specific provisions for loans and other receivables in accordance with the related regulations. This
allowance is netted from the carrying value of the loans and receivables on the asset side of the balance sheet.
Except for the matters explained above are offset and the net amount is reported in the balance sheet when the Bank has
a legally enforceable right to offset the recognised amounts and there is an intention to collect/pay related financial assets
and liabilities on a net basis, or to realise the asset and settle the liability simultaneously.
X.Explanations on sales and repurchase agreements and securities lending transactions
Securities subject to repurchase agreements (“Repo”) are classified as “Financial assets at fair value through profit or
loss”, “Available-for-sale” and “Held-to-maturity” according to the investment purposes of the Bank and measured
according to the portfolio to which they belong. Funds obtained from repurchase agreements are accounted under “Funds
Provided under Repurchase Agreements” in liabilities and the difference between the sale and repurchase price is accrued
over the life of repurchase agreements using the effective interest method.
Funds given against securities purchased under agreements (“Reverse repo”) to resell are accounted under “Receivables
from Reverse Repurchase Agreements” on the balance sheet. The difference between the purchase and determined resell
price is accrued over the life of repurchase agreements using the “effective interest method”. The Bank has no securities
lending transactions.
As of 31 December 2012, the Bank has no reverse repo (31 December 2011: TL 170.100).
XI. Explanations on assets held for resale and discontinued operations
There are no assets held for resale and discontinued operations as of 31 December 2012 and 2011.
XII. Explanations on goodwill and other intangible assets
There are no goodwill and other intangible assets as of 31 December 2012 and 2011.
Intangible assets are measured at cost on initial recognition and any directly attributable costs of setting the asset to work
for its intended use are included in the initial measurement. Subsequently, intangible assets are carried at historical costs
after the deduction of accumulated amortisation and the provision for value decreases, if any.
Intangible assets are impaired when the book value exceeds the recoverable amount. Impairment indicates that losses
may be realised. When the indicators are present the Bank makes estimation on the recoverable amount. If there are no
indicators of impairment there is no need for the recoverable amount estimation. The explanation on the impairment of
intangible asset is presented in Note I-13 of Section Five.
Intangibles are amortised over their estimated useful lives using the straight-line method. The useful life of the asset is
determined by assessing the expected useful life of the asset, technical, technological and other kinds of obsolescence and
all required maintenance expenses necessary to utilise the economic benefit of the asset.
The Bank’s intangible assets consist of rights and custody services acquired by the Bank on July 2007 (customer
relationship). The intangible assets are amortised over their useful lives on a straight line basis. The amortisation method
and the useful lives of the intangible assets are reassessed regularly at each year end. Rights and the customer relationship
are amortised with straight line method over 5 and 10 years, respectively.
XIII. Explanations on property and equipment
The tangible assets purchased before 31 December 2004 are recorded at restated historical costs in accordance with
inflation accounting and subsequent additions to 31 December 2004 are recorded at their historical purchase costs.
The tangible assets are depreciated over their estimated useful lives on a straight-line basis.
67
Deutsche Bank
Annual Report 2012
At 31 December 2012
If the recoverable amounts of the tangible assets are different than their restated net book values, the Bank records other
income in the income statement or other expense or equity to be added to capital.
Expenditures for the repair and renewal of property and equipment are recognised as expense. The capital expenditures
made in order to increase the capacity of the tangible asset or to increase its future benefits are capitalised on the cost of
the tangible asset. The capital expenditures include the cost components which are used either to increase the useful life or
the capacity of the asset, or the quality of the product or to decrease the costs.
There are no restrictions such as pledges, mortgages or any other restrictions on the tangible assets as of
31 December 2012 and 2011.
There are no changes in the accounting estimates that would have significant effects in the current period or in the
following periods.
Depreciation rates and the estimated useful lives of tangible assets are as follows:
Motor Vehicles
Office Machinery
Furnitures
5 years
3 - 5 years
5 - 15 years
XIV. Explanations on leasing transactions
Maximum length of the finance lease contracts is 4 years. The leased assets are classified under tangible assets and
depreciated over their useful lives with the rate of 20%. The payables related with those finance lease agreements are
recorded under “Lease payables” on the liability side of the balance sheet. The incurred interest expenses and foreign
exchange differences are recorded through the income statement.
In the event of the annulment of the operational lease contracts before its expiration date, the cash paid penalties are
recognised as expense in the related period. There are no operational lease contracts which are annulled by the Bank
before its expiration date.
Transactions regarding operational lease agreements are accounted on an accrual basis in accordance with the terms of the
related contracts.
The Bank, does not perform any finance lease transactions as “Lessor’’.
XV. Explanations on provisions and contingent commitments
Provisions and contingent liabilities except for the specific and general provisions recognised for loans and other
receivables are accounted in accordance with the “Turkish Accounting Standard for Provisions, Contingent Liabilities and
Contingent Assets” (“TAS 37”).
Provisions are recognised when the Bank has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable
estimate of the amount of the obligation can be made. The provision for contingent liabilities arising from past events
should be recognised in the same period of occurrence in accordance with the “Matching principle”. When the amount of
the obligation cannot be estimated and there is no possibility of an outflow of resources from the Bank, it is considered that
a “Contingent” liability exists and it is disclosed in the related notes to the financial statements.
XVI. Explanations on contingent assets
The contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow
of economic benefits to the Bank. If an inflow of economic benefits to the Bank has become probable, then the contingent
asset is disclosed in the footnotes to the financial statements. If it has become virtually certain that an inflow of economic
benefits will arise, the asset and the related income are recognised in the financial statements of the period in which the
change occurs.
Deutsche Bank
Annual Report 2012
68
At 31 December 2012
XVII. Explanations on obligations related to employee rights
In accordance with the existing Turkish Labor Law, the Bank is required to make lump-sum termination indemnities to each
employee whos has completed one year of service with the Bank and whose employment is terminated due to retirement
or for reasons other than resignation or misconduct. The applicable ceiling amount as at 31 December 2012 is full TL 3.129
(31 December 2011: full TL 2.805).
Employee severance indemnities are not subject to legal funding requirements.
The provision has been calculated by estimating the present value of the future probable obligation of the Bank arising
from the retirement of employees. TAS 19 requires actuarial valuation methods to be developed to estimate the
enterprise’s obligation under defined benefit plans. Accordingly, assumptions on discount rate, expected rate of salary
increase and employee turnover rate is used in the calculation of the total liability. Each assumption is reviewed on an
annual basis.
XVIII. Explanations on taxation
Current tax
Many clauses of Corporate Tax Law No. 5520 which are valid starting from 1 January 2006, came into effect after being
published in Official Gazette No. 26205, dated 21 June 2006. According to the New Tax Law, the corporate tax rate in Turkey
is payable at the rate of 20% for 2012 (2011: 20%). The corporate tax rate is calculated on the total income of the Bank after
adjusting for certain disallowable expenses, exempt income and other allowances. No further tax is payable unless the
profit is distributed.
Dividends paid to non-resident corporations, which have a place of business in Turkey or to resident corporations are
not subject to withholding tax. Otherwise, dividends paid are subject to withholding tax at the rate of 15%. An increase in
capital via issuing bonus shares is not considered as profit distribution and thus does not incur withholding tax.
Corporations are required to pay advance corporate tax quarterly at a rate of 20% on their corporate income. Advance tax is
declared by the 14th and paid by the 17th day of the second month following each calendar quarter end. Advance tax paid
by corporations which is for the current period is credited against the annual corporation tax calculated on their annual
corporate income in the following year. Despite the offset, if there is temporary prepaid tax remaining, this balance can be
refunded or used to offset any other financial liabilities to the government.
A 75% portion of the capital gains derived from the sale of equity investments and immovable properties held for at least
two years is tax exempt, if such gains are added to paid-in capital or held in a special account under shareholder’s equity
for five years.
Under the Turkish Corporate Tax Law, losses can be carried forward to offset against future taxable income for up to five
years. Losses cannot be carried back to offset profits from previous periods.
In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Tax returns are required to be
filled and delivered to the related tax office until the evening of the 25th of the fourth month following the balance sheet
date. Tax returns are open for five years from the beginning of the year following the date of filing during which period the
tax authorities have the right to audit tax returns, and the related accounting records on which they are based, and may
issue re-assessments based on their findings.
Deferred tax
According to the Turkish Accounting Standard 12 (TAS 12) “Income Taxes”; deferred tax assets and liabilities are
recognised, using the balance sheet method, on all taxable temporary differences arising between the carrying values of
assets and liabilities in the financial statements and their corresponding balances considered in the calculation of the tax
base, except for the differences not deductible for tax purposes and initial recognition of assets and liabilities which affect
neither accounting nor taxable profit.
Deutsche Bank
Annual Report 2012
69
At 31 December 2012
If transactions and events are recorded in the income statement, then the related tax effects are also recognised in the
income statement. However, if transactions and events are recorded directly in the shareholders’ equity, the related tax
effects are also recognised directly in the shareholders’ equity.
The deferred tax assets and liabilities presented on the financial statements by net basis (off-set).
Transfer pricing
The article no. 13 of the Corporate Tax Law describes the issue of transfer pricing under the title of “disguised profit
distribution” by way of transfer pricing. “The General Communiqué on Disguised Profit Distribution by Way of Transfer
Pricing” published at 18 November 2007, explains the application related issues on this topic.
According to this communiqué, if the taxpayers conduct transactions like purchase and sale of goods or services with the
related parties where the prices are not determined according to the arm’s length principle, then it will be concluded that
there is a disguised profit distribution by way of transfer pricing. Such disguised profit distributions will not be deducted
from the corporate tax base for tax purposes.
XIX. Explanations on funds borrowed
Trading and derivative financial liabilities are valued with their fair values and the other financial liabilities are carried at
“amortised cost” using the effective interest method.
The Bank utilises various hedging techniques to minimise the currency, interest rate and liquidity risks of its financial
liabilities. No convertible bonds have been issued by the Bank.
XX. Explanations on shares and share issuance
There is no issued share certificates for the period ended at 31 December 2012.
XXI. Explanations on bills of exchange and acceptances
As of 31 December 2012, the Bank has no bills of exchange and acceptances.
XXII. Explanations on government grants
As of 31 December 2012, the Bank has no government grants.
XXIII. Explanations on profit reserves and profit distributions
Retained earnings as per the statutory financial statements other than legal reserves are available for distribution, subject
to the legal reserve requirement referred to below.
Under the Turkish Commercial Code (“TCC”) the legal reserves are composed of first and second reserves. The TCC
requires first reserves to be 5% of the profit until the total reserve is equal to 20% of issued and fully paid-in share capital.
Second reserves are required to be 10% of all cash profit distributions that are in excess of 5% of the issued and fully paidin share capital. However holding companies are exempt from this application. According to the Turkish Commercial Code,
legal reserves can only be used to compensate accumulated losses and cannot be used for other purposes unless they
exceed 50% of paid-in capital.
Deutsche Bank
Annual Report 2012
70
At 31 December 2012
XXIV. Explanations on earnings per share
Earnings per share disclosed in the income statement are calculated by dividing net profit for the year to the weighted
average number of shares outstanding during the period concerned.
Current Period
Prior Period
Net Profit
104.107
32.073
Weighted Average Number of Issued Ordinary Shares
1.350.000
1.350.000
Total
0,0771
0,0238
In Turkey, companies can increase their share capital by making a pro-rata distribution of shares (“bonus shares”)
to existing shareholders from retained earnings. For the purpose of earnings per share computations, the weighted
average number of shares outstanding during the year has been adjusted in respect to bonus shares issued without a
corresponding change in resources by giving them a retroactive effect for the year in which they were issued and for each
earlier period.
XXV. Explanations on related parties
For the purpose of these financial statements, shareholders, key management personnel and board members together with
their families and companies controlled by/affiliated with them, and associated companies are considered and referred to
as related parties in accordance with “Turkish Accounting Standard for Related Parties” (“TAS 24”). The transactions with
related parties are disclosed in detail in Note VII of Section Five.
XXVI. Explanations on cash and cash equivalents
For the purposes of the cash flow statement, “Cash” includes cash, effectives, cash in transit, purchased cheques and
demand deposits including balances with the Central Bank; and “Cash equivalents” include interbank money market
placements and time deposits at banks with original maturity periods of less than three months.
XXVII. Explanations on segment reporting
Operational field is distinguishable section of the Bank that has different characteristics from other operational fields per
earning and conducts the presentation of service group, associated bank products or a unique product. Operating segments
are disclosed in Note X in Section Four.
XXVIII. Reclassifications
In order to be consistent with the presentation of financial statements dated 31 December 2012, there are some
reclassifications made on unconsolidated balance sheet and income statement as of 31 December 2011.
SECTION FOUR
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK
I.Explanations on Capital Adequacy Ratio
As of 31 December 2012 the Bank’s capital adequacy ratio is 49,36%.
1. Risk measurement methods in calculation of capital adequacy ratio
Capital adequacy ratio is calculated within the scope of the “Regulation on Measurement and Assessment of Capital
Adequacy Ratios of Banks (the “Regulation”)”, “Regulation on Credit Risk Mitigation Techniques” and “Regulation on
Calculation of Risk Weighted Amounts for Securitisations” published in the Official Gazette no.28337 dated 28 June 2012
and the “Regulation on Equities of Banks” published in the Official Gazette no.26333 dated 1 November 2006.
In the calculation of capital adequacy ratio, the data prepared from accounting records in compliance with the current
legislation are used. Furthermore, the market and operational risk are also taken into account within the framework of
regulations.
71
Deutsche Bank
Annual Report 2012
At 31 December 2012
In the calculation process of credit risk, asset types determined in 6th article of the Regulation, ratings and credit risk
mitigators are taken into account. “Simple financial collateral approach” is taken into account for banking book items.
The amount subject to credit risk for non cash loans are considered by using the conversion rates which are defined in the
5th article of “Regulation On Measurement And Evaluation Of Capital Adequacy Of Banks”. Depleted and amortized assets
are taken into consideration by net amounts which are calculated by the deduction of depreciation cost and provisions. The
items which are deducted from shareholders’ equity and trading book items are not considered in the calculation of risk
weighted assets.
As per the article 5 of the Regulation, the “counterparty credit risk” is calculated for repurchase transactions, reverse
repurchase transactions and securities. In the calculations regarding counterparty credit risk, the “Fair Value Method of
Valuation” existing in the Regulation, is used.
2. Information related to capital adequacy ratio
As of 31 December 2012:
Risk weights
0%
10%
20%
50%
75%
100%
150%
Weighted Credit Risk
Risk classifications:
Conditional and unconditional
exposures to central governments
or central banks
205.503
-
-
-
-
-
-
exposures to regional
governments or local authorities
-
-
-
-
-
-
-
exposures to administrative bodies
and non-commercial undertakings
-
-
-
-
-
-
-
Conditional and unconditional exposures
to multilateral development banks
-
-
-
-
-
-
-
exposures to international organisations
-
-
-
-
-
-
-
to banks and brokerage houses
-
-
84.640
85.187
-
61.491
-
to corporates -
-
8.422
-
- 393.739
-
Conditional and unconditional retail
exposures
-
-
-
-
720
90.433
-
secured by real estate property
-
-
-
-
-
-
-
Past due items -
-
-
-
-
-
-
Items in regulatory high-risk categories -
-
-
-
-
-
-
Exposures in the form of bonds secured
by mortgages -
-
-
-
-
-
-
Securitisation positions -
-
-
-
-
-
-
Short term exposures to banks,
brokerage houses and corporates -
-
-
-
-
-
-
Exposures in the form of collective
investment undertakings -
-
-
-
-
-
-
Other receivables
285
-
-
-
-
7.280
-
Total balance subject to credit risk
205.788
-
93.062
85.187
720 552.943
-
Value at credit risk
-
-
18.612
42.593
540 552.943
-
3.Summary information related to unconsolidated capital adequacy ratio
Capital to be employed for credit risk (Amount subject to credit risk * 0,08) (I)
Capital to be employed for market risk (II)
Capital to be employed for operational risk (III) Shareholders’ equity
Shareholders’ equity / * ( I+II+III ) * 12.5 * 100)
200%
-
Current period
49.175
7.284
22.767
488.794
49,36
Deutsche Bank
Annual Report 2012
72
At 31 December 2012
4. Information about shareholders’ equity items
Current Period
CORE CAPITAL
Paid-in capital
135.000
Nominal capital
135.000
Capital commitments (-)
Adjustment to paid-in capital
31.866
Share premium
Share repeal
Legal reserves
243.908
Adjustment to legal reserves
Profit
104.107
Net Current period profit
104.107
Prior period profit
Provisions for possible losses up to 25% of core capital
Profit on sale of associates, subsidiaries and buildings
Primary subordinated loans
Loss that is not covered with reserves (-)
Net current period loss
Prior period loss
Development cost of operating lease (-) 344
Intangible assets (-)
34.151
Deferred-assets for tax which exceeds 10% of core capital (-) Excess amount expressed in the Law (Article 56, 3rd paragraph) (-)
Total Core Capital
480.386
SUPPLEMENTARY CAPITAL
General reserves
8.408
45% of increase in revaluation fund of movables
45% of increase in revaluation fund of fixed assets
Free shares from investment and associates, subsidiaries and joint ventures that is not recognized in profit
Primary subordinated loans which are ignored in the calculation of core capital
Secondary subordinated loans
45% of value increase fund of financial assets available for sale and associates and subsidiaries
Adjustment to paid-in capital, profit reserves and previous years losses(except adjustment to legal reserves)
Total Suplementary Capital
8.408
CAPITAL
DEDUCTIONS FROM THE CAPITAL
Partnership share on banks and financial institutions (domestic and abroad) that are not consolidated,
with a shareholding of 10% and above
The sum of partnership share on banks and financial institutions (domestic and abroad), with shareholding of less than
10%, but exceeding 10% and more of the sum of core and suplimentary capital of the bank
Loans extended to banks, financial institutions (domestic and abroad) and qualified shareholders, like secondary
subordinated loan and debt instruments purchased from these institutions issued, like primary and secondary
subordinated loan Loans extended being noncompliant with articles 50 and 51 of the Law
Net book values of properties owned, exceeding 50% of banks’ equity and properties, and trade goods overtaken in
exchange for loans and receivables that should be disposed within five years in accordance with article 57 of the
Law, but not yet disposed
Securitisation positions to be deducted from the shareholders' equity
Other
Total Shareholders' Equity
488.794
5. Information on the Bank’s internal capital requirements within the scope of the internal capital adequacy assessment
process in order to evaluate the adequacy of the approach in terms of current and future activities
The activities for the implementation of the appropriate evaluation system of the Bank’s internal capital adequacy
assessment in terms of current and future activities is going on. The Bank aims to utilize its shareholders’ experience and
systems and therefore analyzes its’ shareholders’ internal capital adequecy assessment. Furthermore, information systems
for the evaluation of internal capital requirements are studying.
73
Deutsche Bank
Annual Report 2012
At 31 December 2012
II. Explanations on credit risk
Loan customers are subject to the concentration risk limits according to their geographical segments, risk groups, or
sectors approved by thr Board of Directors. In compliance with the banking legislations the Bank does not work with the
untrustworthy individuals and corporate, which are listed in the international watch lists.
Credit limit allocation and credit extension procedures, forward transactions and the transactions related with the other
derivative instruments, the limits and the risk exposures of the daily cash transactions of the customers are approved
by the different level of people from the Bank’s management team according to their related authorisation limits. The
risk limits and concentrations of the daily on and off balance sheet transactions are monitored per each customer by the
authorised people of the treasury department of the Bank.
The credit risk of the forward transactions is managed with the potential risks arising from the fluctuations in the market
and it is avoided from the transactions that could have significant credit risks.
The credit worthiness’ of customer is followed up on a regular basis in accordance with related regulations and accordingly
the credit limits of the customers are revised, if necessary. Statement documents received for loans that are audited in
accordance with regulations is consequential.
The Bank, as an active player in the international banking market, does not hold significant credit risk when compared to
the financial activities of the other international financial institutions.
The Bank’s cash loan portfolio is composed of 39 customers and non-cash loan portfolio is composed of 101 customers as
of 31 December 2012 (31 December 2011: 40 of cash loan portfolio and 101 of non-cash loans portfolio).
The share of bank’s cash and non-cash receivables from first top 100 loan customers in total cash and non-cash loan
portfolio is 100% (31 December 2011: 100%).
The general provision for credit risk amounts to TL 8.408 as of 31 December 2012 (31 December 2011: TL 8.940).
a) Types of loans and specific provisions
31 December 2012
Corporate
Consumer Standard Loans
381.811
94
Loans under close monitoring
-
-
Non-performing loans
-
-
Specific provision (-)
-
-
Total
381.811
94
Factoring
Receivables
-
-
-
-
-
Total
381.905
381.905
31 December 2011
Corporate Consumer Standard Loans
531.882
93
Loans under close monitoring
-
-
Non-performing loans
-
-
Specific provision (-)
-
-
Total
531.882
93
Factoring
Receivables
-
-
-
-
-
Total
531.975
531.975
b) Loans and receivables past due but not impaired
None (31 December 2011: None).
c) Debt securities, treasury bills and other bills
Financial Assets
Available for Sale
Held to
at Fair Value Financial Maturity
31 December 2012
through P/L (Net)
Assets (Net)
Securities (Net)
Moody’s Ba2(*)
618.241
-
-
Total
618.241
-
-
Total
618.241
618.241
74
Deutsche Bank
Annual Report 2012
At 31 December 2012
Financial Assets
Available for Sale
Held to
at Fair Value Financial Maturity
31 December 2011
through P/L (Net)
Assets (Net)
Securities (Net)
Moody’s Ba2(*)
1.195.014
-
-
Total
1.195.014
-
-
(*)
Total
1.195.014
1.195.014
Consists of Turkish Republic government bonds and treasury bills.
d) Information on rating concentration
The Bank does not have credit rating policy.
e) Fair value of collaterals (loans and advances to customers)
Guarantees received ‘s presented in “Credit Risk Mitigation Techniques” disclosure.
f) C
redit risk is the risk reduction effects without taking into consideration the total amount of exposures after offsetting
transactions with different risk classes according to the types and amounts of disaggregated risks are listed below the
average for the period
Current Period Risk classifications:
Risk Amount(*)
Conditional and unconditional exposures to central governments or central banks
162.059
Conditional and unconditional exposures to regional governments or local authorities
-
Conditional and unconditional exposures to administrative bodies and non-commercial undertakings
-
Conditional and unconditional exposures to multilateral development banks
-
Conditional and unconditional exposures to international organisations -
Conditional and unconditional exposures to banks and brokerage houses
189.576
Conditional and unconditional exposures to corporates 487.347
Conditional and unconditional retail exposures 91.153
Conditional and unconditional exposures secured by real estate property
-
Past due items -
Items in regulatory high-risk categories -
Exposures in the form of bonds secured by mortgages -
Securitisation positions -
Short term exposures to banks, brokerage houses and corporates -
Exposures in the form of collective investment undertakings -
Other receivables
7.565
(*)
Average Rist
Amount(**)
161.201
428.264
592.122
28.658
38.211
Includes risk amounts before the effect of credit risk mitigation but after the credit conversions.
Average risk amounts are the arithmetical average of the risk amounts after conversion in July-December period.
(**)
75
Deutsche Bank
Annual Report 2012
At 31 December 2012
g) Profile of significant exposures in major regions
Conditional
Conditional and
and
unconditional unconditional Conditional Conditional
exposures to exposures to and
and
central
banks and unconditionalunconditional
governments or brokerage exposures to retail
Other
31 December 2012
central banks
houses corporates exposures
receivable
1. Domestic
162.059
51.134
382.776
91.153
7.565
2. European Union (EU) countries
-
91.266
62.651
-
-
-
9.666
1.860
-
-
3. OECD countries(**)
4. Off-shore banking regions
-
-
124
-
-
5. USA, Canada
-
31.077
38.821
-
-
6. Other countries
-
6.433
1.115
-
-
7. Associates, subsidiaries
and joint ventures -
-
-
-
-
8. Unallocated assets / liabilities (***) -
-
-
-
-
Total(*)
162.059
189.576
487.347
91.153
7.565
Total
694.687
153.917
11.526
124
69.898
7.548
937.700
OECD countries other than EU countries, USA and Canada
(***)
Assets and liabilities that can not be allocated on a consistent basis
(*)
(**)
h) Risk profile according to sectors and counterparties
Conditional
Conditional and
and
unconditional unconditional Conditional Conditional
exposures to exposures to and
and
central
banks and unconditionalunconditional
governments or brokerage exposures to retail
31 December 2012
central banks
houses corporates exposures
Agricultue
-
-
7.101
-
Farming and raising livestock
-
-
7.101
-
Forestry
-
-
-
-
Fishing
-
-
-
-
Manufacturing
-
-
232.505
27.260
Mining
-
-
-
-
Production
-
-
229.236
27.260
Electric, gas and water
-
-
3.269
-
Construction
-
-
40.370
-
Services
162.059
189.576
205.159
63.799
Wholesale and retail trade
-
-
181.105
63.599
Hotel, food and beverage services
-
-
-
-
Transportation and telecommunication -
-
22.654
200
Financial institutions
162.059
189.576
-
-
Real estate and renting services
-
-
-
-
Self-employement services
-
-
-
-
Education services
-
-
-
-
Health and social services
-
-
1.400
-
Other
-
-
2.212
94
Total(*)
162.059
189.576
487.347
91.153
(*)
Other
receivable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7.565
7.565
Total
7.101
7.101
259.765
256.496
3.269
40.370
620.593
244.704
22.854
351.635
1.400
9.871
937.700
76
Deutsche Bank
Annual Report 2012
At 31 December 2012
i)Distribution of maturity risk factors according to their outstanding maturities
Term to maturity
1 month
1-3 months 3-6 months 6-12 months
Over 1 year
Conditional and unconditional exposures to
central governments or central banks
119.216
-
-
-
-
banks and brokerage houses
186.036
-
-
-
-
exposures to corporates
105.441
120.167
60.853
12
-
Conditional and unconditional retail
exposures 49.099
28.879
4.296
5.952
-
Other receivables
-
-
-
-
-
459.792
149.046
65.149
5.964
-
Total(*)
(*)
Total
119.216
186.036
286.473
88.226
679.951
j) Information on risk classifications
According to the 7th article of the Communiqué on “Measurement and Assessment of Capital Adequacy of Banks”, in
the process of risk weighted assets calculation, risk weights are determined through ratings given by internatiol rating
companies.
The international risk ratings are used for the exposures to central governments and central banks, whereas for central
governments and central banks that are not rated by Fitch Ratings, the published country ratings as announced by the
Organisation for Economic Cooperation and Development (OECD) are used. If exist, the ratings of Standart&Poor’s (S&P),
Moody’s and Fitch Ratings are used together for the exposures of the foreign banks and brokerage houses. Where the
counterparties are domestic, the related exposures are included in the calculation of capital adequcy as unrated.
TL exposures of Central Government of Turkey and Central Bank of Turkey and all reserve requirement balances have 0%
risk weight.
The Fitch Ratings, Moody’s and Standart&Poor’s risk ratings as per the credit quality grades and the risk weights according
to exposure categories are presented below:
Ratings to match
Long-term Credit Rating
Short-Term Credit Rating
Credit Quality
Grades
Fitch
Moody’s
Standart & Poor’s
1
2
3
4
5
6
AAA and AA-
A+ and A-
BBB+ and BBB-
BB+ and BB-
B+ and B-
CCC+ and below
Aaa and Aa3
A1 and A3
Baa1 and Baa3
Ba1 and Ba3
B1 and B3
Caa1 and below
AAA and AAA+ and ABBB+ and BBBBB+ and BBB+ and BCCC+ and below
1
2
3
4
5
6
F1+ and F1
F2
F3
F3 and below
-
-
P-1
P-2
P-3
NP
-
-
A-1+ and A-1
A-2
A-3
A-3 below
-
k) Risk amount based on risk weight
Risk Weight(*)
Risk Weight
0% 10%
20%
50%
75%
100% 150%
1. Exposures Before Credit Risk Mitigation 162.344
- 106.682
-
720 667.954
-
2. Exposures After Credit Risk Mitigation
205.788
- 93.062 85.187
720 552.943
-
(*)
The Bank does not have risk weighted balances on 200% nor 1.250%
Deductions
From Equity
34.495
34.495
Deutsche Bank
Annual Report 2012
77
At 31 December 2012
l)Information according to sector and counterparty types
Loans
31 December 2012
Impaired
Past due Value adjustments
Agricultural
-
-
71
Farming and raising livestock
-
-
71
Forestry
-
-
-
Fishing
-
-
-
Manufacturing
-
-
2.764
Mining
-
-
-
Production
-
-
2.751
Electric, gas and water
-
-
13
Construction
-
-
161
Services
-
-
5.388
Wholesale and retail trade
-
-
3.252
Hotel, food and beverage services
-
-
-
Transportation and telecommunication
-
-
486
Financial institutions
-
-
1.636
Real estate and renting services
-
-
-
Self-employement services
-
-
-
Education services
-
-
-
Health and social services
-
-
14
Other
-
-
24
Total
-
-
8.408
Provisions
-
m) Information about value adjustments and provisions
Impaired loans; are the credits that either overdue more than 90 days as of the reporting date or are treated as impaired
due to their creditworthiness. For such credits, “specific provisons” are allocated as per the Provisioning Regulation. The
Bank does not have impaired loans as at the reporting date.
Past due loans; are the credits that overdue upto 90 days but not impaired. For such credits, “general provisions” are
allocated as per the Provisioning Regulation. The Bank does not have past due loans as at the reporting date.
Opening Provisions for Provision Other
Closing
31 December 2012
balance
the period reversals adjustments
balance
1. Specific provisions
-
-
-
-
2. General provisions
8.940
-
(532)
-
8.408
III. Explanations on Market Risk
The Bank calculates market risk by using “Standard Method” on a monthly basis.
Being exposed to market risk, the Bank’s Board of Directors has identified risk management strategies and policies and
has pursued the implementation of these strategies periodically. Considering the existing major risks, the Bank’s Board of
Directors determines and revises the risk limits, when necessary. The Board of Directors ensures that the risk management
group and the executive management are taking necessary actions in identifying, measuring, monitoring and managing the
various risks that the Bank exposes to.
The Bank performs daily stress testing related with the asset-liability management and Deutsche Bank AG performs the
‘VAR’ analysis.
The market risk exposed positions are transferred to the global markets with the most appropriate market prices for each
assets and liabilities. The global markets prepare the daily market yield curves which are used as reference prices for such
transfers.
The capital requirement for the general market risk and specific risks is calculated using the standard method in accordance
with the “Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks” and reported monthly.
78
Deutsche Bank
Annual Report 2012
At 31 December 2012
a) Information related to market risk
(I) Capital Requirement against General Market Risk - Standard Method
(II) Capital Requirement against Specific Risks - Standard Method
Capital Requirement against Specific Risks of Securitisation Positions– Standard Method (III) Capital Requirement against Currency Position Risk - Standard Method (IV) Capital Requirement against Commodity Risks - Standard Method
(V) Capital Requirement against Clearing Risks - Standard Method
(V) Capital Requirement against Clearing Risks - Standard Method
(VII) Capital Requirement against Counterparty Credit Risks - Standard Method
(VIII) Capital Requirement against Market Risks of Banks applying Risk Measurement
(IX) Total Capital Requirement against Market Risk (I+II+III+IV+V+VI+VII)
(X) Value-At-Market Risk ((12.5*VIII) or (12.5*IX))
31 December 2012
4.920
1.656
708
7.284
91.050
b) Average market risk calculated during the period at month ends
Interest rate risk
Share risk
Currency risk
Commodity risk
Settlement risk
Options risk
Counterparty Credit Risk(*)
Amount subject to total risk (*)
Average
13.204
-
1.950
-
-
-
579
196.662
Current Period
Maximum
20.781
-
5.681
-
-
-
1.008
343.375
Minimum
5.326
-
267
-
-
-
217
72.625
Average
7.951
-
1.686
-
-
-
-
120.463
Prior Period
Maximum
20.948
-
5.548
-
-
-
-
331.200
Minimum
1.336
55
17.388
Counterparty credit risk includes July-December period.
c) Quantitative information on counterparty risk
As per the 21st article of the “Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks”,
counterparty risk is calculated over the following trading book transactions:
a) Over-the-counter derivative financial instruments and credit derivatives,
b) Securities or commodity based securities included in the trading books or commodity borrowing or lending transactions
and repurchase and reverse repurchase agreements.
The replacement costs are calculated valuing the contracts at their fair and those amounts are used in counterparty risk.
Amount Interest rate contracts(*)
62.229
Foreign exchange rate contracts(**)
7.894
Commodity contracts
-
Equity shares related contracts
-
Other
-
Gross positive fair values
861
Netting benefits
-
Net current exposure amount
-
Collaterals received
-
Net derivative position
7.894
(*)
Consist of repurchase transactions.
Consist of currency swaps and forward agreements.
(**)
Total Risk
Weighted Amount
6.197
2.655
861
2.655
79
Deutsche Bank
Annual Report 2012
At 31 December 2012
IV. Operational risk
The amount subject to operational risk is calculated once a year in accordance with the Regulation on “Measurement and
Assessment of the Capital Adequacy of Banks” published in the Official Gazette numbered 28337 on 28 June 2012. In the
calculation of the Bank’s operational risk, the “Basic Indicator Method” is used. In the Basic Indicator Method, the amount
subject to operational risk is calculated by multiplying 15% of the Bank’s average gross revenue over the previous three
years with 12,5. Amount subject to operational risk is TL 284.588 for the current period.
Total / Number
of years for
which gross
income
31.12.2009
31.12.2010
31.12.2011
is positive
Rate (%)
Gross Income
213.657
123.795
117.893
151.782
15
Amount subject to operational risk (Total*12,5)
Total
22.767
284.588
V. Explanations on currency risk
The Bank manages its foreign currency balance sheet by paying maximum attention to comply with the regulations of the
related authorities and by choosing the most appropriate methods to the Bank’s liquidity and profitability policies.
The position limit regarding the foreign currency risk is determined as parallel to the net foreign currency position standard
rate. As of 31 December 2012, the Bank’s net ‘on balance sheet’ foreign currency long position amounts to TL 21.670
net ‘off-balance sheet’ foreign currency short position amounts to TL 7.358, while this net foreign currency long position
amounts to TL 14.312.
‘’Standard method’’, which is also used for the statutory reporting purposes, is used to measure the Bank’s foreign
currency risk.
The Bank’s effective exchange rates on the date of 31 December 2012 and 2011 and for the last five working days of the
period announced by the Bank in TL are as follows:
25 Dec. 2012
26 Dec. 2012
27 Dec. 2012
28 Dec. 2012
USD
1,7893
1,7877
1,7848
1,7829
CHF
1,9549
1,9516
1,9484
1,9544
GBP
2,8950
2,8796
2,8787
2,8823
EUR
2,3651
2,3586
2,3566
2,3657
31 Dec. 2012
26 Dec. 2011
27 Dec. 2011
28 Dec. 2011
29 Dec. 2011
USD
1,8809
1,8833
1,8847
1,8897
CHF
2,0072
2,0104
2,0138
2,0211
GBP
2,9493
2,9419
2,9497
2,9597
EUR
2,4583
2,4613
2,4633
2,4702
30 Dec. 2011
1,7826
1,9430
2,8708
2,3517
1,9065
2,0148
2,9366
2,4592
The arithmetical average of the Bank’s main foreign currency purchase rates for the last 30 days before the balance sheet
date are listed below:
Monthly average purchase rate
USD
CHF
GBP
EUR
Current Period
1,7791
1,9271
2,8700
2,3332
Prior Period
1,8561
1,9925
2,8992
2,4509
a) Exposure to foreign currency risk
A 10 percent depreciation of the TL against the following currencies as at 31 December 2012 and 2011 would have
increased or decreased equity and profit or loss (excluding tax effects) by the amounts shown below. This analysis
assumes that all other variables, in particular interest rates, remain constant.
USD
EUR
Other foreign currencies
Total, net
(*)
Includes profit/loss effect.
Current Period
(*)
Profit/loss
Equity (731)
(731)
2.005
2.005
61
61
1.335
1.335
Prior Period
(*)
Profit/loss
Equity
6.500
6.500
55
55
345
345
6.900
6.900
Deutsche Bank
Annual Report 2012
80
At 31 December 2012
b) Information on currency risk of the Bank
Current Period
Euro
USD
Other FC
Assets
Cash (Cash in Vault, Effectives, Cash in Transit, Cheques
Purchased) and Balances with Central Bank of Turkey
180
119.231
-
Banks 1.079
1.002
1.036
Financial Assets at Fair Value Through Profit or Loss
-
-
-
Interbank Money Market Placements
-
-
-
Available-for-sale Financial Assets
-
-
-
133.024
87.392
-
Loans and Receivables(*)
Investments in Associates, Subsidiaries and Joint Ventures
-
-
-
Held-to-maturity Financial Assets
-
-
-
Derivative Financial Assets Held for Risk Management
-
-
-
Tangible Assets
-
-
-
Intangible Assets
-
-
-
Other Assets(***)
29.411
12.731
19
Total Assets
163.694
220.356
1.055
Liabilities
Bank Deposits
121
30.307
-
Foreign Currency Deposits
36.466
42.180
19
Funds From Interbank Money Market
-
-
-
Funds Borrowed From Other Financial Institutions
235.182
-
-
Marketable Securities Issued
-
-
-
4
36
-
Derivative Financial Liabilities Held for Risk Management
-
-
-
Other Liabilities(***)
17.928
1.728
427
Total Liabilities
289.701
74.251
446
Net On-Balance Sheet Position
(126.007)
146.105
609
Net Off-Balance Sheet Position(**)
146.055
(153.413)
-
Derivative Assets
216.856
278.191
-
Derivative Liabilities
70.801
431.604
-
Non-Cash Loans(****)
139.065
149.306
66
Prior Period
Total Asset
117.223
552.586
3.134
Total Liabilities
196.250
565.601
445
Net On-Balance Sheet Position
(79.027)
(13.015)
2.689
Net Off-Balance Sheet Position
79.577
78.024
764
Derivative Assets
290.602
781.509
764
Derivative Liabilities
211.025
703.485
-
Non-Cash Loans(****)
155.308
226.489
69
Total
119.411
3.117
220.416
42.161
385.105
30.428
78.665
235.182
40
20.083
364.398
20.707
(7.358)
495.047
502.405
288.437
672.943
762.296
(89.353)
158.365
1.072.875
914.510
381.866
he foreign currency indexed loans amounting to TL102.018 is included.
T
Indicates the net amount of derivative financial assets and liabilities. Spot foreign exchange buy and sell transactions
shown under “Asset purchase commitments” in the financial statements are included in the “Net off-balance position”.
Derivative financial assets and liabilities include accrual amounting to TL 861 and TL 1.065, respectively.
(***)
Accruals from spot foreign exchange buy and sell transactions are not included in “Other Assets” and “Other
Liabilities”. Income and expense accruals from spot foreign exchange buy and sell transactions are TL 143 and TL 241,
respectively. Foreign currency prepaid expenses amounting to TL 963 are excluded from other assets.
(****)
There is no impact on net off-balance sheet position.
(*)
(**)
81
Deutsche Bank
Annual Report 2012
At 31 December 2012
VI. Explanations on Interest Rate Risk
The interest rate sensitivity of assets, liabilities and off-balance sheet items are evaluated quarterly at Asset-Liability
Committee meetings.
The Bank’s interest rate risk is measured by using the standard method. The Bank provides information to its main
shareholder Deutsche Bank AG for their, Value at Risk (VAR), risk measurement methods and performs sensitivity analyses.
Standard method measurements are performed monthly by using the maturity distribution; while the VaR calculations are
performed on a daily basis.
The interest rate risk of TL and foreign currency indexed financial assets held for trading and financial assets held for
available for sale is measured by the daily interest rate sensitivity analyses.
1.Interest rate sensitivity of assets, liabilities and off balance sheet items
(Based on repricing dates)
Up to 1
1-3
3-12
1-5
5 Years Non-Interest
Current Period Ended
Month Months
Months
Years and Over
Bearing
Assets
Cash and Balances with the Central
Bank of Turkey
-
-
-
-
-
162.344
Banks
38.151
-
-
-
-
3.540
Financial Assets at Fair Value through
Profit/Loss
212.291 148.473
65.790 124.651
67.036
861
Money Market Placements
-
-
-
-
-
-
Available-for-Sale Financial Assets
-
-
-
-
-
-
161.746 149.046
71.113
-
-
-
Held-to-Maturity Financial Assets
-
-
-
-
-
-
-
-
-
-
-
91.924
Other Assets(*)
Total Assets
412.188 297.519
136.903 124.651
67.036
258.669
Liabilities
Bank Deposits
30.304
-
-
-
-
113.502
Other Deposits 65.043
27.150
-
-
-
194.741
Money Market Funds
59.753
-
-
-
-
-
Miscellaneous Payable
-
-
-
-
-
2.252
Securities Issued -
-
-
-
-
-
Funds Borrowed
880 235.182
-
-
-
-
Other Liabilities(**)
-
-
-
-
-
568.159
Total Liabilities
155.980 262.332
-
-
-
878.654
On Balance Sheet Long Position 256.208
35.187
136.903 124.651
67.036
-
On Balance Sheet Short Position
-
-
-
-
-
(619.985)
Off-Balance Sheet Long Position
714.314
35.550
39.510
-
-
-
Off-Balance Sheet Short Position
(714.599) (35.549)
(39.494)
-
-
-
Total Position
255.923
35.188
136.919 124.651
67.036
(619.985)
Total
162.344
41.691
619.102
381.905
91.924
1.296.966
143.806
286.934
59.753
2.252
236.062
568.159
1.296.966
619.985
(619.985)
789.374
(789.642)
(268)
Includes tangible assets amounting to TL 3.442, intangible assets amounting to TL 34.151 and other assets amounting to
TL 54.331.
(**)
Includes equity amounting to TL 514.881, provisions amounting to TL 38.802, other liabilities amounting to TL 525,
derivative instruments held for trading amounting to TL 1.065 and tax liabilities amounting to TL 12.886.
(*)
Deutsche Bank
Annual Report 2012
82
At 31 December 2012
Up to 1
1-3
3-12
1-5 5 Years Non-Interest
Prior Period Ended
Month Months
Months Years and Over
Bearing
Total
Assets
Bank of Turkey
-
-
-
-
-
132.773
132.773
Banks
88.593
-
-
-
-
23.675
112.268
Financial Assets at Fair Value through
Profit/Loss
282.964 339.443
275.612 302.503
5.555
- 1.206.077
170.100
-
-
-
-
-
170.100
Investment Securities Available-for-Sale -
-
-
-
-
-
58.781 320.405
152.789
-
-
-
531.975
Investment Securities Held-to-Maturity -
-
-
-
-
-
2.479
-
-
-
-
86.348
88.827
Other Assets(*)
Total Assets
602.917 659.848
428.401 302.503
5.555
242.796 2.242.020
Liabilities
Bank Deposits
-
-
-
-
-
84.906
84.906
Other Deposits 137.905
-
-
-
-
112.024
249.929
Money Market Funds
816.753
-
-
-
-
-
816.753
-
-
-
-
-
3.591
3.591
Securities Issued -
-
-
-
-
-
Funds Borrowed
398.679 133.595
76.296
-
-
-
608.570
16.999
-
-
-
-
461.272
478.271
Total Liabilities
1.370.336 133.595
76.296
-
-
661.793 2.242.020
On Balance Sheet Long Position
- 526.253
352.105 302.503
5.555
- 1.186.416
On Balance Sheet Short Position
(767.419)
-
-
-
-
(418.997) (1.186.416)
Off-Balance Sheet Long Position
1.053.800 319.134
388.542
-
-
- 1.761.476
Off-Balance Sheet Short Position
(1.046.635) (319.260) (389.331)
-
-
- (1.755.226)
Total Position
(760.254) 526.127
351.316 302.503
5.555
(418.997)
6.250
Includes tangible assets amounting to TL 2.532, intangible assets amounting to TL 39.429, tax assets amounting to TL
4.070 and other assets amounting to TL 42.796.
(**)
Includes equity amounting to TL 417.188, provisions amounting to TL 31.632, other liabilities amounting to TL 5.882,
trading derivative instruments amounting to TL 13.832, payable from leasing transactions amounting to TL 17 and tax
liabilities amounting to TL 9.720.
(*)
2.Average interest rates on monetary financial instruments
Current Period EUR %
USD %
JPY %
Assets
Cash and Balances with the Central Bank of Turkey
-
-
-
-
-
-
Financial Assets at Fair Value through Profit/Loss
-
-
-
-
-
-
Available-for-Sale Financial Assets (Net)
-
-
-
2,60
3,70
-
Held-to-Maturity Financial Assets (Net)
-
-
-
Liabilities
Bank Deposits
-
0,33
-
Other Deposits 0,10
0,28
-
Money Market Funds
-
-
-
-
-
-
Securities Issued -
-
-
Funds Borrowed 0,07
-
-
TL %
6,82
9,24
7,81
-
4,63
5,15
-
83
Deutsche Bank
Annual Report 2012
At 31 December 2012
Prior Period EUR %
USD %
JPY %
Assets
Cash and Balances with the Central Bank of Turkey
-
-
-
-
0,07
-
Financial Assets at Fair Value through Profit/Loss
-
-
-
-
-
-
Available-for-Sale Financial Assets (Net)
-
-
-
3,34
3,40
-
Held-to-Maturity Financial Assets (Net)
-
-
-
Liabilities
Bank Deposits
-
-
-
Other Deposits 0,40
0,41
-
Money Market Funds
-
-
-
-
-
-
Securities Issued -
-
-
Funds Borrowed 0,99
0,58
-
TL %
10,69
9,58
10,72
12,71
-
7,00
5,82
-
3. Interest rate risk on banking books
The interest rate risk of the banking books is measured and monitored within the scope of the Regulation about
Measurement and Assessment of Interest Rate Risk in the Banking Accounts by Standard Shock Method.
Shock Applied Gains/ Type of Currency
(+/- x basis point)
(Losses)
TL
(+) 500bp
(1.706)
TL
(-) 400bp
1.449
EUR
(+) 200bp
288
EUR
(-) 200bp
(293)
USD
(+) 200bp
(140)
USD
(-) 200bp
142
Total (of positive shocks)
(1.558)
Total (of negative shocks)
1.298
Gains/Equity(Losses)/Equity
(%0,349)
%0,296
(%0,059)
%0,060
(%0,029)
%0,029
%0,319
%0,266
4. Position risk of equity securities on banking books
None.
VII. Explanations on liquidity risk
General principles of liquidity and financial emergency state management and the related application procedures are
considered in the scope of “Regulation for Liquidity Risk and Liquidity and Financial Emergency State Management”
The Bank calculates liquidity adequacy ratio and reports to BRSA on a weekly basis in accordance with the “Measurement
and Assessment of Liquidity Adequacy of Banks” issued in the Official Gazette numbered 26333 and dated 1 November
2006. The liquidity adequacy of the Bank is over the limit values specified in the mentioned regulation.
1.The resources of the current liquidity risk; whether the necessary precautions have been taken, whether the Board of
Directors sets limits on the funds available to meet the urgent liquidity requirements and to be able to pay borrowings
when they become due
Liquidity risk is managed by considering the main criteria such as (1) the expected cash flows at related time intervals, (2)
the possibility and capacity of borrowing from the market, (3) the credit quality of the assets on the balance sheet.
In addition to the compliance with the legal limitations regarding the liquidity, the Bank monitors from the cash flow
reports that there are matching borrowing opportunities with the cash out-flows within the same time interval.
Deutsche Bank
Annual Report 2012
84
At 31 December 2012
2.The matching of the payments, assets and liabilities and the interest rates, and the possible impact of the current
mismatch on the profitability of the Bank
The Bank’s assets and liabilities carry positive interest earnings. The assets and liabilities are repriced in one month in
average. Therefore, the Bank carries limited interest rate risk.
3. Internal and external resources that meets the short and long term liquidity needs of the Bank and unutilised significant
liquidity resources
The Bank monitors that the maturity matching of the assets and liabilities are kept. The Bank keeps sufficient liquid assets
to meet liquidity needs caused by the fluctuations in the market.
As per the BRSA Communiqué published on 1 November 2006 and effective from 1 January 2007, “Measurement and
Assessment of the Adequacy of Banks’ Liquidity”, the weekly and monthly liquidity ratios on a bank-only basis for foreign
currency assets/liabilities and total assets/liabilities should be minimum 80% and 100%, respectively. The liquidity ratios in
2012 are as follows:
First Maturity Bracket (Weekly)
Second Maturity Bracket (Mothly)
FC
FC + TL
FC
FC + TL
Average (%)
100,24
115,04
97,72
113,92
Maximum (%)
143,43
150,72
125,02
146,71
Minimum (%)
80,41
100,27
80,70
100,87
4. The assessment of the amounts and resources of the Bank’s cash flows
As explained above, the Bank has sufficient cash and cash inflows in order to be able to timely meet the cash outflows.
Maturity analysis of residual values of contractual financial liabilities:
Gross
Carrying Nominal Up to 1
1-3
3-12
1-5 5 Years
Current period
Value Outflow Demand
Month Months Months
Years and Over
Bank Deposits
143.806 143.806 113.502
30.304
-
-
-
Other Deposits
286.934 286.969 194.741
65.064
27.164
-
-
Funds Borrowed
236.062 238.678
-
880 237.798
-
-
Interbank Money Market Funds 59.753
59.753
-
59.753
-
-
-
2.252
2.252
2.252
-
-
-
-
Finance Lease Payables
-
-
-
-
-
-
-
Total
728.807 731.458 310.495 156.001 264.962
-
-
Gross
Carrying Nominal
Up to 1
1-3
3-12
1-5 5 Years
Prior period
Value Outflow Demand
Month Months Months
Years and Over
Bank Deposits
84.906
84.906
84.906
-
-
-
-
Other Deposits
249.929 249.955 112.024 137.931
-
-
-
Funds Borrowed 608.570 609.753 - 398.795 134.097
76.861
-
Interbank Money Market Funds
816.753 817.010
- 817.010
-
-
-
3.591
3.591
3.591
-
-
-
-
Finance Lease Payables
17
17
-
11
6
-
-
Total
1.763.766 1.765.232 200.521 1.353.747 134.103
76.861
-
The above table shows the undiscounted estimated cash outflows of the financial liabilities in accordance with their
contracts.
Deutsche Bank
Annual Report 2012
85
At 31 December 2012
Maturity analysis of assets and liabilities according to remaining maturities
Up to 1
1-3
3-12
1-5
5 Years UnalloCurrent period
Demand
Month Months Months
Years and Over
cated
Assets
Bank of Turkey
43.128 119.216
-
-
-
-
-
Banks 3.540
38.151
-
-
-
-
-
Financial Assets At Fair Value
Through or Loss
-
684
78.065
77.913 365.968
96.472
-
Interbank Money Market Placements
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 161.746 149.046
71.113
-
-
-
-
-
-
-
-
-
-
Other Assets(*)
-
1.250
2.808
26.859
-
-
61.007
Total Assets
46.668 321.047 229.919 175.885 365.968
96.472
61.007
Liabilities
Bank Deposits
113.502
30.304
-
-
-
-
-
Other Deposits
194.741
65.043
27.150
-
-
-
-
Funds Borrowed
-
880 235.182
-
-
-
-
Interbank Money Market Funds
-
59.753
-
-
-
-
-
Securities Issued
-
-
-
-
-
-
-
2.252
-
-
-
-
-
-
27.599
10.616
84
14.979
-
- 514.881
Total Liabilities
338.094 166.596 262.416
14.979
-
- 514.881
Liquidity Gap
(291.426) 154.451 (32.497) 160.906 365.968
96.472 (453.874)
Prior Period
Total Assets
24.583 1.270.062 329.781 191.589 343.859
22.089
60.057
Total Liabilities 218.134 1.368.382 134.395
96.912
7.009
- 417.188
Liquidity Gap
(193.551) (98.320) 195.386
94.677 336.850
22.089 (357.131)
Total
162.344
41.691
619.102
381.905
91.924
1.296.966
143.806
286.934
236.062
59.753
2.252
568.159
1.296.966
2.242.020
2.242.020
-
Includes tangible assets amounting to TL 3.442, intangible assets amounting to TL 34.151 and other assets amounting to
TL 54.331.
(**)
Includes equity amounting to TL 514.881, provisions amounting to TL 8.802, other liabilities amounting to TL 525,
derivative instruments held for trading amounting to TL 1.065 and tax liabilities amounting to TL 12.886.
(*)
Contractual maturity analysis of the Bank’s derivative instruments Up to 1
1-3
3-12
1-5
5 years
31 December 2012
Month
Months
Months
Years
and Over
Derivative instruments held for trading
Foreign exchange derivatives:
952.445
71.099
79.005
-
-
- Inflow
476.131
35.550
39.510
-
-
- Outflow
476.315
35.549
39.494
-
-
Interest rate derivatives:
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow
-
-
-
-
-
Derivative instruments held for risk
management
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow
-
-
-
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow
-
-
-
-
-
Total cash inflow
476.131
35.550
39.510
-
-
Total cash outflow
476.315
35.549
39.494
-
-
Total
1.102.549
551.191
551.358
-
551.191
551.358
86
Deutsche Bank
Annual Report 2012
At 31 December 2012
Up to 1
1-3
3-12
1-5
5 Years
31 December 2011
Month
Months
Months
Years
and Over
Derivative instruments held for trading
874.450
638.394
777.873
-
-
- Inflow
436.499
319.134
388.542
-
-
- Outflow
437.951
319.260
389.331
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow
-
-
-
-
-
Derivative instruments held for risk
management
-
-
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow
-
-
-
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow
-
-
-
-
-
Total cash inflow
436.499
319.134
388.542
-
-
Total cash outflow
437.951
319.260
389.331
-
-
Total
2.290.717
1.144.175
1.146.542
-
1.144.175
1.146.542
5. Explanations on securitization positions
None.
6. Credit risk mitigation techniques
The Bank applies credit risk mitigation according to the simple financial collateral method in compliance with the article 33
of the “Regulation on Credit Risk Mitigation Techniques”.
In the credit risk mitigation, cash and cash equivalent items and high-credit-quality debt instruments are used.
Guarantees
Financial Other/Physical and Credit
Risk Classifications:
Amount (*)
Collaterals
Collaterals Derivatives
central governments or central banks
regional governments or local authorities
administrative bodies and non-commercial undertakings
multilateral development banks
international organisations Conditional and unconditional exposures to banks
and brokerage houses
Conditional and unconditional exposures to corporates Conditional and unconditional retail exposures Conditional and unconditional exposures secured
by real estate property
Past due items Items in regulatory high-risk categories Exposures in the form of bonds secured by mortgages
Securitisation positions Short term exposures to banks, brokerage houses
and corporates Exposures in the form of collective investment undertakings
Other receivables
(*)
162.059
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
189.576
487.347
91.153
43.444
-
-
-
-
-
85.186
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7.565
-
-
-
-
-
-
-
87
Deutsche Bank
Annual Report 2012
At 31 December 2012
7. Risk management objective and policies
The aim of the risk management system is to provide the definition, measurement, surveillance and control of the exposed
risks; by means of policies, implementation methods and limits; determined in order that the risk-return structure contained
in the future cash flows of the Bank, and the quality of the related activities and their levels are followed, controlled, and
changed, if needed.
The required policies, methods and limits for the measurement, analysis, reporting and controlling of the defined risks are
determined by the Board of Managers.
In the determination of risk management policies and implementation methods; strategies, policies and implementation
methods regarding the activities of the Bank; the volume, quality and the complexity of the activities; risk strategy and
acceptable level of risk; risk monitoring and managing capacity; past experience and performance; the level of expertise of
the managers of the related units in topics related to their area; and the obligations indicated in the law and other related
legislation; are taken into account.
The adaptation of the risk management policies and procedures to the changing conditions is essential. The Board of
Managers or the related Internal Systems Specialist evaluates the adequacy of these regularly and makes the required
alterations.
Risk management policies and procedures include the utilization of risk reduction techniques like hedging, insurance or
credit derivatives.
The Bank determines written limits for the quantifiable risk like the credit risk, market risk, interest rate risk and liquidity
risk originating from its activities; and these limits are approved by the Board. The risk limits are determined together with
top management executives including the related internal systems specialist, the risk management unit executive and the
general manager of the Bank. These limits become valid with the approval of the Board.
The risk limits are determined according to the risk level the Bank can take, and the volume and complexity of its
products and services. The risk limits are reviewed periodically in a way to reflect the currency of the developments in the
implementation and adapted according to the changes in the market conditions and bank strategy.
It is essential that the limits are determined risk-based. The risk limits to be determined, cannot go out of the limits
determined in the regulations related to these topics.
VIII. E
xplanations regarding the presentation of financial assets and liabilities at their fair values
It has been assumed that fair value of financial assets and liabilities which have not been presented by fair value
approximates their carrying value due to short-term maturity structure.
TFRS 7 – Financial instruments: Disclosures requires the classification of fair value measurements into a fair value hierarchy
by reference to the observability and significance of the inputs used in measuring fair value of financial instruments
measured at fair value to be closed. This classification basically relies on whether the relevant inputs are observable or not.
This distinction brings about a fair value measurement classification generally as follows:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets of liabilities.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are obversable for the
asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3: Fair value measurements using inputs for the assets or liability that are not based on observable market data
(unobservable inputs).
This classification of fair value measurements of financial assets and liabilities measured at fair value is as follows:
31 December 2012
Level 1
Level 2
Level 3
Financial Assets at Fair Value Through Profit or Loss
618.241
861
-
Government Debt Securities
618.241
-
-
Share Certificates
-
-
-
Derivative Financial Assets Held for Trading
-
861
-
Other Securities
-
-
-
Available for Sale Financial Assets
-
-
-
-
-
-
Other Securities
-
-
-
-
-
-
Total Assets
618.241
861
-
Derivative Financial Liabilities Held for Trading
-
1.065
-
-
-
-
Total Assets
-
1.065
-
Total
619.102
618.241
861
619.102
1.065
1.065
88
Deutsche Bank
Annual Report 2012
At 31 December 2012
31 December 2011
Level 1
Level 2
Level 3
Total
Financial Assets at Fair Value Through Profit or Loss 1.195.014
11.063
-
1.195.014
-
-
Share Certificates
-
-
-
Derivative Financial Assets Held for Trading
-
11.063
-
Other Securities
-
-
-
Available for Sale Financial Assets
-
-
-
-
-
-
Other Securities
-
-
-
-
-
-
Total Assets
1.195.014
11.063
-
Derivative Financial Liabilities Held for Trading
-
13.832
-
-
-
-
Total Liabilities
-
13.832
-
1.206.077
1.195.014
11.063
1.206.077
13.832
13.832
IX. Explanation regarding the activities carried out on behalf and account of other parties
1.Purchasing, selling, custody, management and advisory services which are carried out by the Bank on behalf of
customers
The Bank provides intermediary services for the purchase and sale of financial assets on behalf of the customers and
custody services.
2. Whether operations with financial institutions and financial services in the context of transaction agreements held in trust
effect the financial situation of the Bank significantly
The Bank is not involved in trust activities.
X. Explanations on operating segments
Financial information on operational segments as of 31 December 2012 and 2011 are as follows:
Corporate
Global
Current period
Banking
Markets
Other
Unallocated
Operating Profit
50.669
137.363
28.915
-
Net Operating Profit / (Loss)
19.550
82.167
28.915
-
Profit /(Loss) Before Tax
-
-
-
-
Tax Provision
-
-
-
-
Net Period Profit /(Loss)
-
-
-
-
Segment Assets
445.419
851.547
-
-
Segment Liabilities
377.246
404.839
-
-
Equity
-
-
-
514.881
Prior period
Corporate
Banking
Global
Markets
Other
Unallocated
Operating Profit
59.308
31.392
27.193
-
Net Operating Profit / (Loss)
3.759
10.477
27.193
-
Profit /(Loss) Before Tax
-
-
-
-
Tax Provision
-
-
-
-
Net Period Profit /(Loss)
-
-
-
-
Segment Assets
589.423
1.652.597
-
-
Segment Liabilities
409.521
1.415.311
-
-
Equity
-
-
-
417.188
Total
216.947
130.632
130.632
26.525
104.107
1.296.966
782.085
514.881
Total
117.893
41.429
41.429
9.356
32.073
2.242.020
1.824.832
417.188
Deutsche Bank
Annual Report 2012
89
At 31 December 2012
SECTION FIVE
EXPLANATIONS AND NOTES TO UNCONSOLIDATED FINANCIAL STATEMENTS
I. Explanations and Notes Related to Assets
1.Information related to cash and balances with the Central Bank of Turkey
1.aInformation on cash and balances with the Central Bank of Turkey
Current Period
TL
FC
TL
Cash in TL/ Foreign currency
90
195
53
Central Bank of Turkey
42.843
119.216
651
Other
-
-
-
Total
42.933
119.411
704
Prior Period
FC
204
131.865
132.069
1.b Information on balances with the Central Bank of Turkey
Current Period
TL
FC
TL
Unrestricted Demand Deposits
42.843
-
651
Unrestricted Time Deposits
-
55.662
-
Restricted Time Deposits -
63.554
-
Total
42.843
119.216
651
Prior Period
FC
8.374
123.491
131.865
1.c Information on reserve deposits
The banks operating in Turkey keep reserve deposits for Turkish currency liabilities in TL, USD, EUR and/or standard gold
at the rates between 5% and 11% according to their maturities (31 December 2011: between 5% and 11% according to their
maturities), foreign currency liabilities in USD, EUR and/or standard gold at the rates between 6% and 11,5% according
to their maturities (31 December 2011: between 6% and 11 % according to their maturities), respectively as per the
Communiqué no.2005/1 “Reserve Deposits” of the Central Bank of Turkey.
Reserve deposits required by the Central Bank of Turkey are not interest bearing.
2.Information on financial assets at fair value through profit or loss
2.a Financial assets at fair value through profit or loss
2.a.1Financial assets at fair value through profit/loss subject to repurchase agreements and provided as collateral/blocked
Current Period
Prior Period
TL
FC
TL
FC
Share Certificates
-
-
-
Government Securities, Treasury Bills,
and Other Securities
212.382
-
328.741
Others
-
-
-
Total
212.382
-
328.741
-
90
Deutsche Bank
Annual Report 2012
At 31 December 2012
2.a.2Financial assets at fair value through profit/loss subject to repurchase agreements
Current Period
TL
FC
TL
Government Bonds
62.229
-
818.279
Treasury Bills
-
-
-
Other Securities
-
-
-
Bond Issued or Guaranteed By Banks
-
-
-
Asset Backed Securities
-
-
-
Others
-
-
-
Total
62.229
-
818.279
Prior Period
FC
-
2.bPositive differences on derivative financial assets held for trading
Current Period
TL
FC
TL
Forward Transactions
-
561
-
Swap Transactions
-
300
-
Futures
-
-
-
Options
-
-
-
Other
-
-
-
Total
-
861
-
Prior Period
FC
944
10.119
11.063
3. Information on banks
3.a. Information on banks
Current Period
TL
FC
TL
Banks
Domestic
23.426
102
43.206
Foreign
15.148
3.015
3.816
Foreign headoffices and branches
-
-
-
Total
38.574
3.117
47.022
Prior Period
FC
37
65.209
65.246
3.b Information on foreign banks account
Unrestricted amount
Current Period
Prior Period
EU Countries
USA, Canada
OECD Countries(*)
Off-shore Banking Regions
Other
Total
(*)
16.949
981
233
-
-
18.163
OECD countries other than EU countries, USA and Canada.
4. Information on financial assets available for sale
4.484
60.788
3.751
-
2
69.025
Restricted amount
Current Period
Prior Period
-
-
-
-
-
-
-
Deutsche Bank
Annual Report 2012
91
At 31 December 2012
5. Explanations on loans and receivables
5.aInformation on all types of loan or advance balances given to shareholders and employees of the Bank
Current Period
Prior Period
Cash
Non-cash
Cash
Non-cash
Direct Lending to Shareholders
-
181.953
-
172.542
Corporate Shareholders -
181.953
-
172.542
Individual Shareholders
-
-
-
Indirect Lending to Shareholders 41.314
-
23.299
Loans to Employees
94
-
93
Total
41.408
181.953
23.392
172.542
5.b Information on the first and second group loans and receivables including loans that have been restructured or
rescheduled and other receivables
Standard Loans Loans and Receivables
and Receivables
Under Close Monitoring
Loans and Restructured or Loans and Restructured or Receivables
Rescheduled Receivables
Rescheduled
Extension of Extension of
the payment the payment Cash Loans
plan
Other
plan Other
Non-Specialized Loans
214.780
167.125
-
-
-
Commercial loans
104.998
80.043
-
-
-
Export Loans
88.147
87.082
-
-
-
Import Loans
-
-
-
-
-
Loans Given to Financial Sector
7.206
-
-
-
-
Consumer Loans 94
-
-
-
-
Credit Cards
-
-
-
-
-
Other
14.335
-
-
-
-
Specialized Lending
-
-
-
-
-
Other Receivables
-
-
-
-
-
Total
214.780
167.125
-
-
-
Information on loans whose terms are extended as of 31 December 2012:
Current Period
Number of extensions
and Receivables
1 or 2 Times
83.354
3, 4 or 5 Times
4.874
Over 5 Times
78.897
Total
167.125
Current Period
Extension Periods
and Receivables
0 - 6 Months
136.510
6 Months - 12 Months
30.615
1 - 2 Years
-
2 - 5 Years
-
5 Years and Over
-
Total
167.125
-
92
Deutsche Bank
Annual Report 2012
At 31 December 2012
5.c Loans according to their maturity structure
Cash Loans
Short-term Loans and Receivables
Non-specialised Loans
Specialised Loans
Other Receivables
Medium and Long-Term Loans and Receivables
Non-specialised Loans Specialised Loans
Other Receivables
Total
Standard Loans and Loans and Receivables Under Close
Receivables
Monitoring
Loans and Restructured or
Loans and Restructured or
Receivables
Rescheduled
Receivables
Rescheduled
214.780
167.125
-
214.780
167.125
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
214.780
167.125
-
-
5.d Information on consumer loans, individual credit cards, personnel loans and personnel credit cards
The Bank has no consumer loans, consumer credit cards and personnel credit cards as of
31 December 2012 (31 December 2011: None). The Bank has personnel loan amounting to TL 94 as of 31 December 2012
(31 December 2011: TL 93).
5.e Information on installment based commercial loans and corporate credit cards
5.f Information on allocation of loan customers
Public Sector
Private Sector
Total
Current Period -
381.905
381.905
5.g Distribution of domestic and foreign loans
Current Period Domestic Loans
360.364
Foreign Loans
21.541
Total
381.905
Prior Period 531.975
531.975
Prior Period
512.232
19.743
531.975
5.h Loans to associates and subsidiaries
5.i Specific provisions for loans
Current Period Loans and Receivables with Limited Collectability -
Doubtful Loans and Receivables
-
Uncollectible Loans and Receivables
-
Total
-
Prior Period -
93
Deutsche Bank
Annual Report 2012
At 31 December 2012
5.j Information on non-performing loans (Net)
5.j.1 Information on non-performing loans and receivables restructured or rescheduled:
None (31.12.2011: None).
5.j.2 Information on the movement of total non-performing loans:
III. Group
Current Period
with Limited Collectability
Prior Period End Balance
-
Additions (+)
-
Transfers from Other Categories of Non performing Loans (+)
-
Transfers to Other Categories of Non-performing Loans (-)
-
Collections (-)
-
Write-offs (-)
-
Corporate and Commercial Loans
-
Consumer Loans
-
Credit Cards
-
Other
-
Balance at the End of the Period
-
Specific Provision (-)
-
Net Balance on Balance Sheet
-
IV. Group
with Doubtful Collectability
-
-
-
-
-
-
-
-
-
-
-
-
-
V. Group
Uncollectible Loans
and Receivables
-
III. Group
Prior Period
with Limited Collectability
Prior Period End Balance
14
Additions (+)
-
Transfers from Other Categories of Non performing Loans (+)
-
Transfers to Other Categories of Non-performing Loans (-)
-
Collections (-)
(14)
Write-offs (-)
-
Corporate and Commercial Loans
-
Consumer Loans
-
Credit Cards
-
Other
-
-
Specific Provision (-)
-
Net Balance on Balance Sheet
-
IV. Group
with Doubtful Collectability
V. Group
Uncollectible Loans
and Receivables
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5.j.3Information on foreign currency non-performing loans and receivables
5.kMain principles of liquidating for uncollectible loans and receivables
The Bank has no uncollectible loans and receivables as of 31 December 2012 (31 December 2011: None).
6. Information on held-to-maturity financial assets (Net)
7. Information on investments in associates (Net)
94
Deutsche Bank
Annual Report 2012
At 31 December 2012
8. Information on investments in subsidiaries (Net)
9. Information on investments in joint ventures (Net)
10. Information on finance lease receivables
11.Information on derivative financial assets held for risk management
12. Information on property and equipment
Current Period
Real Estates
Leased
Tangible
Assets
Other
Tangible
Assets
31 December 2011
Cost
-
2.919
12.046
Accumulated Depreciation (-)
-
(2.874)
(9.559)
Net book value
-
45
2.487
31 December 2012
Net Book Value at the Beginning of the Period
-
45
2.487
Additions -
-
2.347
Disposals (-) (net)
-
-
-
Depreciation (-)
-
(1)
(1.436)
Cost at the End of the Period -
2.919
14.393
Accumulated Depreciation at the End of the Period (-)
-
(2.875)
(10.995)
Closing Net Book Value at the End of the Period -
44
3.398
Prior Period
Real Estates
Leased
Tangible
Assets
Other
Tangible
Assets
31 December 2010
Cost
-
2.956
13.415
Accumulated Depreciation (-)
-
(2.515)
(10.239)
Net book value
-
441
3.176
31 December 2011
Net Book Value at the Beginning of the Period
-
441
3.176
Additions -
-
856
Disposals (-) (net)
-
(9)
(44)
Depreciation (-)
-
(387)
(1.501)
Cost at the End of the Period -
2.919
12.046
Accumulated Depreciation at the End of the Period (-)
-
(2.874)
(9.559)
Closing Net Book Value at the End of the Period -
45
2.487
Total
14.965
(12.433)
2.532
2.532
2.347
(1.437)
17.312
(13.870)
3.442
Total
16.371
(12.754)
3.617
3.617
856
(53)
(1.888)
14.965
(12.433)
2.532
As of 31 December 2012 and 2011, there is not impairment losses or reversal of impairment losses on tangible asserts.
As of 31 December 2012 and 2011, there is no pledge on tangible assets.
Deutsche Bank
Annual Report 2012
95
At 31 December 2012
13. Information on intangible assets:
The Bank has intangible assets amounting to TL 34.151 as of 31 December 2012 (31 December 2011: TL 39.429). The Bank
acquired the custody operations of a local Bank in Turkey on 11 May 2007. The transaction was settled on 2 July 2007.
While purchase amount is TL 150.967, a provision of TL 59.823 has been recorded after revaluation because of changes in
expected cash flows.
13.aBook value and accumulated depreciation balances at current and prior period
Current Period
Prior Period
Accumulated Accumulated
Amortisation
Impairment Amortisation Amortisation Impairment Amortisation
Intangible Assets
160.912
61.950
64.811
158.279
61.950
56.900
13.b Information on movements between the beginning and end of the period
Current Period
Beginning of the Period
39.429
Additions due to Mergers, Transfers and Acquisitions
2.633
Disposals (-)
-
Amortisation (-)
(7.911)
End of the Period
34.151
Prior Period
45.646
1.517
(7.734)
39.429
14. Information on investment property
15. Information on deferred tax assets
As of 31 December 2012, the Bank has a deferred tax liability of TL 4.834 (31 December 2011: TL 5.139) calculated as the
net amount remaining after netting of tax deductible timing differences and taxable timing differences. The Bank does not
have deferred tax asset as at 31 December 2012. Detailed information about the net deferred tax asset/liability is presented
Section V, note 8.b.
There is no deductible temporary differences that are not included in calculation of deferred tax asset and not reflected to
financial statements in prior periods.
16. Information on assets held for sale and discontinued operations
17. Information on other assets
17.a Information on prepaid expenses, tax and similar transactions
Current Period Income accruals(*)
30.561
Guarantees given
20.337
Prepaid expenses
1.017
Other
2.416
Total
54.331
(*)
TL 28.711 of income accruals comprise service income accruals (31 December 2011: TL 26.504).
17.b Breakdown of other assets which constitute at least 20% of grand total
Presented in the table above.
Prior Period
28.054
9.666
1.026
4.050
42.796
96
Deutsche Bank
Annual Report 2012
At 31 December 2012
II. Explanations and Notes Related to Liabilities
1. Information on maturity structure of deposits
Current Period
Demand
Saving Deposits
Residents in Turkey
Residents Abroad
Public Sector Deposits
Commercial Deposits
Other Institutions Deposits
Precious Metal Deposits
Bank Deposits
The Central Bank of Turkey
Domestic Banks
Foreign Banks
Special Financial Institutions
Other
Total
-
30.622
29.391
1.231
-
143.611
20.508
-
113.502
-
121
113.381
-
-
308.243
With
6
7 day
Up to 1
1-3
3-6 months -
1 year
notification
month months months
1 year and over
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20.893
20.893
-
-
44.067
83
-
30.304
-
30.304
-
-
-
95.347
-
27.150
-
27.150
-
-
-
-
-
-
-
-
-
-
27.150
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
With
6
7 day
Up to 1
1-3
3-6 months -
1 year
Prior Period
Demand notification
month months months
1 year and over
Saving Deposits
-
-
-
-
-
-
-
34.133
-
102.507
-
-
-
-
Residents in Turkey
33.810
-
88.013
-
-
-
-
Residents Abroad
323
-
14.494
-
-
-
-
-
-
-
-
-
-
-
Commercial Deposits
56.695
-
35.371
-
-
-
-
Other Institutions Deposits
21.196
-
27
-
-
-
-
-
-
-
-
-
-
-
Bank Deposits
84.906
-
-
-
-
-
-
The Central Bank of Turkey
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
Foreign Banks
84.906
-
-
-
-
-
-
Special Financial Institutions
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
Total
196.930
-
137.905
-
-
-
-
Saving deposits covered by deposit insurance and total amount of deposits exceeding insurance coverage limit
Saving deposits at domestic branches of foreign banks in Turkey under the coverage of foreign insurance
Saving deposits out of the insurance coverage limits of Saving Deposit Insurance Fund
Total
78.665
50.284
28.381
187.678
20.591
143.806
30.425
113.381
430.740
Total
136.640
121.823
14.817
92.066
21.223
84.906
84.906
334.835
97
Deutsche Bank
Annual Report 2012
At 31 December 2012
2.Information on derivative financial liabilities held for trading
Negative differences on derivative financial liabilities held for trading
Forward Transactions Swap Transactions
Futures Transactions
Options
Other Total
Current Period
TL
FC
-
208
-
857
-
-
-
-
-
-
-
1.065
TL
-
-
-
-
-
-
Prior Period
FC
4.260
9.572
13.832
3. Information on funds borrowed
3.a Information on banks and other financial institutions
Current Period
TL
FC
TL
-
-
-
Domestic Banks and Institutions
880
-
-
Foreign Banks, Institutions and Funds
-
235.182
-
Total
880
235.182
-
Prior Period
FC
608.570
608.570
3.b Information on maturity structure of funds borrowed
Current Period
TL
FC
TL
Short-term
880
235.182
-
Medium and Long-term
-
-
-
Total
880
235.182
-
Prior Period
FC
608.570
608.570
3.c Additional information on the major concentration of the Bank’s liabilities
The Bank funds its assets within the normal course of its banking business with bank deposits, funds borrowed and
interbank money markets.
4.At least 20% of account of other liabilities on the balance sheet, exceeding 10% of the total liabilities excluding the off
balance sheet items
Account of other liabilities on the balance sheet does not exceeds 10% of total liabilities excluding the off balance sheet
items.
5. Information on financial lease payables (Net)
5.1 General information on the criteria used for the lease instalment arrangements, renewal or buy options and restrictions
in the agreements
The maturity of the financial lease agreements are mostly 4 years. In lease agreements the interest rate and the Bank’s cash
flow are important criteria. In lease agreements there are no articles that bear significant liabilities to the Bank.
5.2 Changes in the conditions of the agreements and new requirements for the Bank
There are no changes in the conditions of the agreements of the Bank.
98
Deutsche Bank
Annual Report 2012
At 31 December 2012
5.3 Information on financial lease payables
Less than 1 Year
1-4 Years More than 4 Years
Total
Current Period
Gross
Net
-
-
-
-
-
-
-
-
Prior Period
Gross
17
-
-
17
Net
17
17
5.4 Operational lease agreements
The Bank’s operational leasing activities comprise of vehicles, photocopy machines and office buildings.
5.5 Information on sales and lease-back agreements
In the current period there are no sales and lease-back agreements (31 December 2011: None).
6. Information on derivative financial liabilities held for risk management
7. Information on provisions and subordinated loans
7.a Information on general provisions
Current Perod
General Provisions
Loans and Receivables in Group I
4.469
- Additional Provision for Loans and Receivables 2.197
Loans and Receivables in Group II
-
- Additional Provision for Loans and Receivables with Extended Maturities
-
Non-cash Loans
1.118
Other
624
Total
8.408
Prior Period
6.061
2.103
776
8.940
7.b Information on provisions for foreign exchange differences on foreign currency indexed loans
As of 31 December 2012, provision for the foreign exchange differences on foreign currency indexed loans is TL 415 (31
December 2011: TL 524) and this amount is netted with loans on the asset side of the financial statements.
7.c Provisions for non-cash loans that are not indemnified or converted into cash
The Bank has specific provisions provided for unindemnified non cash loans amounting to TL 120 as of the reporting date
(31 December 2011: TL 121).
7.d Reserve for employment benefits
Information on reserve for employment termination benefits
Current Perod
Personnel Bonus Provision
12.884
Provision for Employee Termination Benefits
774
Unused Vacation Right Provision
1.593
Total
15.251
Prior Period
10.726
560
1.484
12.770
In accordance with the existing Turkish Labor Law, the Bank is required to make lump-sum termination indemnities to each
employee whos has completed one year of service with the Bank and whose employment is terminated due to retirement
or for reasons other than resignation or misconduct. The applicable ceiling amount as at 31 December 2012 is full TL 3.129
(31 December 2011: full TL 2.805).
99
Deutsche Bank
Annual Report 2012
At 31 December 2012
Employee severance indemnities are not subject to legal funding requirements.
The provision has been calculated by estimating the present value of the future probable obligation of the Bank arising
from the retirement of employees. TAS 19 requires actuarial valuation methods to be developed to estimate the
enterprise’s obligation under defined benefit plans. Accordingly, assumptions on discount rate, expected rate of salary
increase and employee turnover rate is used in the calculation of the total liability. Each assumption is reviewed on an
annual basis. The major acturial assumptions used in the calculation of the total liability are as follows:
Current Perod
Net discount rate
%2,74
Rate of expected inflation increase
%5,30
Turnover rate to estimate the probability of retirement
%95,73
Prior Period
%4,66
%5,10
%91,00
Movement of provision for employee termination benefits during the period is presented below:
Current Perod
Balance at the beginning of the period
560
Recognised during the period
475
Paid during the period (-)
(72)
Cancelled during period
(189)
Total
774
Prior Period
381
196
(11)
(6)
560
7.e Information on other provisions
7.e.1 General reserves for possible losses
7.e.2 Information on other provisions exceeding 10% of total provisions
As of 31 December 2012, other provisions amounting to TL 15.143 (31 December 2011: TL 9.922) includes provisions
amounting to TL 14.562 (31 December 2011: TL 9.228) that will be paid in accordance with the service agreement signed
with Deutsche Bank Group.
8. Information on tax liability
8.a.1 Information on tax liability
As of 31 December 2012, the Bank had a current tax liability of TL 3.535 (31 December 2011: None).
8.a.2 Information on taxes payable
Current period
Corporate Taxes Payable
3.535
Taxation on Securities Income
215
Tax on Real Estates Income
-
Banking Insurance Transaction tax (BITT)
1.719
Foreign Exchange Transactions tax
-
Value Added Tax Payable
1.510
Others(*)
872
Total
7.851
(*)
Includes withholding income taxes amounting to TL 831 as of 31 December 2012 (31 December 2011: TL 862).
Prior period
1.186
1.569
761
885
4.401
Deutsche Bank
Annual Report 2012
100
At 31 December 2012
8.a.3 Information on premium payables
Current period
Social Security Premiums-Employee 89
Social Security Premiums-Employer 94
Bank Pension Fund Premium-Employees
-
Bank Pension Fund Premium-Employer
-
Pension Fund Membership Fee and Provisions-Employee
-
Pension Fund Membership Fee and Provisions-Employer -
Unemployment Insurance-Employee
6
Unemployment Insurance-Employer 12
Others
-
Total
201
Prior period
79
84
6
11
180
8.b Information on deferred tax liability
The Bank has deferred tax liabilities amounting to TL 4.834 in the current period (31 December 2011: TL 5.139).
Current period
Prior period
Accumulated Deferred Tax Accumulated Deferred Tax
Temporary Receivable / Temporary Receivable /
Differences
(Payable)
Differences
(Payable)
Impairment on Intangible Assets
59.823
11.965
59.823
11.965
Reserve for Employment Benefits
2.367
473
2.044
409
Provisions
5.333
1.067
5.823
1.165
Derivative Financial Liabilities 301
60
3.636
727
Other
283
56
1.165
233
Deferred Tax Assets
68.107
13.621
72.491
14.499
Differences Between Carrying Value and Tax
Value of Tangible and Intangible Assets
(92.277)
(18.455)
(98.189)
(19.638)
Deferred Tax Liabilities
(92.277)
(18.455)
(98.189)
(19.638)
Deferred Tax Assets / (Liabilities), net
(24.170)
(4.834)
(25.698)
(5.139)
9.Information on liabilities related to assets held for sale and discontinued operations
10.Explanations on the number of subordinated loans the group used, maturity, interest rate, institution that the loan was
borrowed from, and conversion option, if any
11. Information on shareholders’ equity
11.1 Presentation of paid-in capital
Current period
Common Stock 135.000
Preferred Stock -
Total
135.000
Prior period
135.000
135.000
11.2 Paid-in capital amount, explanation as to whether the registered share capital system ceiling is applicable at bank, if so
amount of registered share capital
The Bank is not subject to registered share capital system.
101
Deutsche Bank
Annual Report 2012
At 31 December 2012
11.3 Information on the share capital increases during the period and their sources
11.4 Information on share capital increases from revaluation funds
11.5 Capital commitments in the last fiscal year and at the end of the following interim period, the general purpose of these
commitments and projected resources required to meet these commitments
11.6 Information on privileges given to shares representing the capital
11.7 Information on securities value increase fund
III. Explanations and Notes Related to Off-Balance Sheet Items
1. Information on off balance sheet liabilities
1.a The amount and type of irrevocable commitments
Type of irrevocable commitments
Current Period
Loan Granting Commitments
537.140
Two Days Forward Buy/Sell Commitments
476.467
Payment Commitments for Checks
29
Tax and Fund Liabilities from Export Commitments
1
Total
1.013.637
Prior Period
654.328
1.225.985
1.880.313
1.b Possible losses and commitments resulted from off-balance sheet items including the following
1.b.1Non-cash loans including guarantees, bank acceptances, letters of guarantee substitute for financial guarantees and
other letters of credit
As of 31 December 2012, amount of letters of guarantee, letters of credit, import letter of acceptance and sureties are TL
237.120 (31 December 2011: TL 279.652), TL15.184 (31 December 2011: TL 75.998), TL 728 (31 December 2011: TL 1.210) and
TL 58.829 (31 December 2011: TL 49.184), respectively.
1.b.2 Certain guarantees, tentative guarantees, sureties and similar transactions
None except the items explained above in note 1.b.1.
1.c.1 Non-cash loans
Non-Cash Loans against Cash Risks
With Original Maturity up to 1 Year
With Original Maturity of More Than 1 Year
Other Non-Cash Loans
Total
Current Period
Prior Period
-
-
-
311.861
311.861
406.044
406.044
102
Deutsche Bank
Annual Report 2012
At 31 December 2012
1.c.2 Sector risk concentration of non-cash loans
TL
Agriculture
-
Farming and Stockbreeding -
Forestry
-
Fishery
-
Manufacturing
8.698
Mining -
Production
2.160
Electricity, Gas, Water
6.538
Construction
-
Services
14.726
Wholesale and Retail Trade
11.286
Hotel, Food and Beverage Services
-
Transportation and Telecommunication3.409
Financial Institutions
31
Real Estate and Renting Services
-
“Self-Employment’’ Type Services
-
Educational Services
-
Health and Social Services
-
Other
-
Total 23.424
Current Period
(%)
FC
-
-
-
-
-
-
-
-
37 128.566
-
-
9 128.566
28
-
-
80.740
63
79.131
48
66.684
-
-
15
2.480
-
9.967
-
-
-
-
-
-
-
-
-
-
100 288.437
(%)
-
-
-
-
45
-
45
-
28
27
23
-
1
3
-
-
-
-
-
100
Prior Period
(%)
FC
-
-
-
-
-
-
-
-
74 216.391
-
-
74
216.391
- -
-
93.045
26 68.781
6
51.065
-
-
20 2.318
- 14.254
-
-
-
-
-
-
-
1.144
-
3.649
100 381.866
TL
45
45
-
-
17.747
-
17.727
20
-
6.350
1.365
-
4.954
31
-
-
-
-
36
24.178
(%)
57
57
24
18
13
1
4
1
100
1.c.3 Non-cash loans classified under Group I and II
Letters of Guarantee
Bank Acceptances
Letters of Credit
Endorsements
Underwriting Commitments
Factoring Related Guarantees
Other Commitments and Contingencies
Total
TL
22.696
728
-
-
-
-
-
23.424
Group I
FC
TL
214.424
-
15.184
-
-
-
58.829
288.437
-
-
-
-
-
-
-
-
Group II
FC
-
2. Information on financial derivative instruments
Derivative Transactions per Their Purposes
Trading
Risk Management
Current Period Prior Period
Current Period
Prior Period
Derivatives Held for Trading
Foreign Currency Related Derivative Transactions (I)
1.102.549
2.290.717
-
Currency Forwards 321.532
462.104
-
Currency Swaps
781.017
1.361.858
-
Currency Futures
-
466.755
-
Currency Options -
-
-
Interest Rate Related Derivative Transactions (II)
-
-
-
Interest Rate Forwards
-
-
-
Interest Rate Swaps
-
-
-
Interest Rate Futures
-
-
-
Interest Rate Options
-
-
-
Other Derivatives Held for Trading (III)
-
-
-
A. Total Derivatives Held for Trading (I+II+III)
1.102.549
2.290.717
-
Derivatives Held for Risk Management
Fair Value Hedge (1)
-
-
-
Cash Flow Hedge (2)
-
-
-
Net Foreign Investment Hedge
-
-
-
B. Total Derivatives Held for Risk Management
-
-
-
Total Derivative Transactions(A+B)
1.102.549
2.290.717
-
-
103
Deutsche Bank
Annual Report 2012
At 31 December 2012
3.Information on credit derivatives and risk exposures on credit derivatives
4. Explanations on contingent liabilities and assets
The Bank has various lawsuits which are unlikely to finalize against the Bank and therefore cash outflow is not expected to
incur (31 December 2011: None).
5. Explanations on services provided on behalf of third parties
The Bank provides purchase and sales of the financial instruments and custody services on behalf of the third parties.
Financial instruments (nominal values) held on behalf of the individuals and corporates by the Bank are as follows:
Current Period
Government Bonds-TL
32.461.246
Private Sector Bonds
1.000.693
Warrants
1.182.728
Share Certificates-TL
6.642.063
Cheques in Portfolio-TL
16.111
Cheques in Portfolio-FC
4.835
Other Items Under Custody
17.826
Total
41.325.502
Prior Period
24.709.244
318.740
976.803
5.140.022
30.299
16.276
19.065
31.210.449
IV. Explanations and Notes Related to Income Statement
1. Information on interest income:
1.a Information on interest income on loans(*)
Current Period
TL
FC
Short-term Loans 17.093
11.505
Medium/Long-term Loans
-
-
Loans Under Follow-up -
-
Premiums Received from Resource Utilisation Support Fund
-
-
Total
17.093
11.505
(*)
Priod Period
TL
FC
8.165
-
-
-
8.165
5.093
5.093
Includes also the fee and commission income on cash loans.
1.b Information on interest income on banks
Current Period
Priod Period
TL
FC
TL
FC
-
-
53
Domestic Banks
5.525
-
5.103
Foreign Banks
4.321
1
2.953
15
Foreign Head Offices and Branches
-
-
-
Total
9.846
1
8.109
15
Deutsche Bank
Annual Report 2012
104
At 31 December 2012
1.c Information on interest income on marketable securities
Current Period
Priod Period
TL
FC
TL
FC
Financial Assets Held for Trading
227.955
-
129.960
Financial Assets At Fair Value Through Profit or Loss
-
-
-
-
-
-
-
-
-
Total
227.955
129.960
1.dInformation on interest income received from associates and subsidiaries
2. Information on interest expenses
2.a Information on interest expense on funds borrowed(*)
Current Period
Priod Period
TL
FC
TL
FC
Banks
19
2.494
9.559
1.628
-
-
-
Domestic Banks
-
-
-
Foreign Banks
19
2.494
9.559
1.628
Foreign Head Offices and Branches
-
-
-
Other Institutions
-
-
-
Total
19
2.494
9.559
1.628
(*)
Includes also the fee and commission expense on funds borrowed.
2.b Information on interest expense paid to associates and subsidiaries
2.c Interest expense on securities issued
105
Deutsche Bank
Annual Report 2012
At 31 December 2012
2.d Maturity structure of the interest expense on deposits
Time Deposits
Demand
Up to 1
1-3
3-6
6-12
1 Year
Deposits
Month
Months
Months
Months
and Over
TL
Bank Deposits
241
949
-
-
-
-
Saving Deposits
-
-
-
-
-
-
-
-
-
-
-
-
Commercial Deposits
42
8.131
417
-
-
-
Other Deposits
-
206
84
-
-
-
“7 Days Notice” Deposits
-
-
-
-
-
-
Total
283
9.286
501
-
-
-
FC
-
94
16
17
-
-
“7 Days Notice” Deposits
-
-
-
-
-
-
-
-
-
-
-
-
Bank Deposits
-
1.746
-
-
-
-
Total
-
1.840
16
17
-
-
Grand Total
283
11.126
517
17
-
-
Total
1.190
8.590
290
10.070
127
1.746
1.873
11.943
3.Information on dividend income
4. 4. Information on trading loss/income (Net)
Current Period
Income
1.929.843
Capital Market Transactions
29.756
1.148.232
Derivative Financial Transactions(*)
Foreign Exchange Gains
751.855
Losses (-)
2.015.661
Capital Market Transactions 66.486
Derivative Financial Transactions(*)
1.202.183
Foreign Exchange Losses
746.992
Net Income/(Losses) (Net)
(85.818)
Prior Period
2.634.829
51.142
1.508.396
1.075.291
2.716.663
95.457
1.427.759
1.193.447
(81.834)
Foreign exchange loss from derivative transactions is TL 5.338 (31 December 2011: loss amounting to TL 115.217).
(*)
5. Information on other operating income
As of 31 December 2012, the Bank’s other operating income is TL 7.511 (31 December 2011: TL 6.464).
Current Period
Service Income – FC
2.578
Service Income – TL
3.521
Other
1.412
Total
7.511
Prior Period
3.386
2.005
1.073
6.464
Deutsche Bank
Annual Report 2012
106
At 31 December 2012
6. Provisions for losses on loans and receivables
Current Period
Specific Provisions for Loans and Receivable
-
Loans and Receivables in Group III
-
Loans and Receivables in Group IV
-
Loans and Receivables in Group V
-
General Provisions
-
Provision for Possible Losses
-
Foreign Exchange Losses on Foreign Currency
-
Impairment Losses on Securities
-
Financial Assets at Fair Value through Profit or Loss
1.804
Available-for-sale Financial Assets
-
Other Impairment Losses -
Associates
-
Subsidiaries
-
Joint Ventures
-
Held to Maturity Financial Securities
-
Other
-
Total
1.804
Prior Period
108
108
5.423
1.732
7.263
7. Information on other operational expenses
Current Period
Personnel Expenses
24.885
Reserve for Employee Termination Benefits 214
Bank Pension Fund Deficit Provisions
-
Impairment Losses on Tangible Assets -
Depreciation Expenses of Tangible Assets
1.437
Impairment Losses on Intangible Assets
-
Impairment Losses on Goodwill
-
Amortization Expenses of Intangible Assets
7.911
Impairment Losses on Investments Accounted Under Equity Method
-
Impairment Losses on Assets to be Disposed
-
Depreciation Expenses of Assets to be Disposed
-
Impairment Losses on Assets Held for Sale
-
Other Operating Expenses 32.077
Operational Lease Related Expenses
2.787
Repair and Maintenance Expenses 396
Advertisement Expenses -
Other Expenses(*)
28.894
Loss on Sale of Assets
-
Other
-
Other(**)
17.987
Total
84.511
Prior Period
22.559
179
1.888
7.734
22.006
2.417
273
19.316
14.835
69.201
The “Other operating expenses” includes communication expenses amounting to TL 5.712 (31 December 2011: TL 4.978),
benefits and services obtained from third parties amounting to TL 2.283 (31 December 2011: TL 2.209), information and
technology expenses amounting to TL 2.154 (31 December 2011: TL 1.425) and Deutsche Bank Group management service
expenses amounting to TL 3.975 (31 December 2011: TL 2.095).
(**)
As of 31 December 2012 “Other” includes short term employee benefits amounting to TL 12.008 (31 December 2011: TL
9.838).
(*)
Deutsche Bank
Annual Report 2012
107
At 31 December 2012
8. Profit/loss before taxes from continuing and discontinued operations
As of 31 December 2012 the Bank has a profit before tax amounting to TL 130.632 (31 December 2011: profit of TL 41.429).
9. Information on provision for taxes from continuing and discontinued operations
9.1Information on current tax income/ expense and deferred tax income/expense from continuing and discontinued
operations
As of 31 December 2012 the Bank has deferred tax income amounting to TL 305 (31 December 2011: TL 2.983 deferred tax
expense) and current tax expense amounting to TL 26.830 (31 December 2011: TL 6.373).
9.2Deferred tax income or expense from temporary differences of continuing and discontinued operations
The deferred tax income amounting to TL 305 for the year ended 31 December 2012 (31 December 2011: TL 2.983 deferred
tax expense) is arising from timing differences resulting from the temporary differences between applied accounting
policies and tax regulations.
9.3Deferred tax income/expense from the temporary differences, tax losses or tax exemptions of continuing and
discontinued operations
As of 31 December 2012, deferred tax income presented in the income statement includes the net amount remaining after
netting of tax deductible timing differences and taxable timing differences. The Bank does not have prior years’ losses.
10. Information on net operating profit/loss after taxes of continuing operations and discontinued operations
As of 31 December 2012, the Bank has profit after tax amounting to TL 104.107.
11. Information on net profit and loss for the period
11.1The nature and amount of certain income and expense items from ordinary operation is disclosed if the disclosure for
nature, amount and repetition rate of such items is required for the complete understanding of the Bank’s performance for
the period
The main operations of the Bank are interbank money market transactions, marketable securities transactions, foreign
currency transactions, custody services and providing collateralised non-cash loans. Therefore; net interest income, net
trading income, net foreign exchange gain and fees and commission income from custody services are the most important
captions of the Bank’s income statement.
Current Period
Priod Period
Interest Income/(Expense), Net
250.149
158.691
Income/(Loss) from Capital Market Transactions, Net
(36.730)
(44.315)
Gain/(Loss) from Derivative Financial Transactions, Net
(53.951)
80.637
Foreign Exchange Gains/(Losses), Net
4.863
(118.156)
Commissions from Custody Operations
18.500
17.319
Commissions from Non-cash Loans
1.668
1.114
Commissions from Intermediary Services
31.383
22.472
Other Commission Income
2.671
2.022
11.2 Effects of changes in accounting estimates on the current and following periods’ profit/loss
There is no significant change in accounting estimates which would affect the current or following period.
108
Deutsche Bank
Annual Report 2012
At 31 December 2012
12. Components of other items in income statement, as each sub-account exceeding 20% of the total separately, exceeding
10% of total income statement
Other fee and commission income
Current Period
TL
FC
Commissions from Custody Operations
18.500
-
Commissions from Intermediary Services
-
31.383
Other Fee and Commissions
1.099
1.572
Total
19.599
32.955
Priod Period
TL
FC
17.319
-
1.048
18.367
22.472
974
23.446
Other fee and commission expense
Current Period
Priod Period
TL
FC
TL
FC
Commissions due to Custody Operations
4.528
-
3.993
Commissions Paid to Intermediary Services
-
3.115
-
2.160
Commissions Paid to Correspondent Banks
-
697
-
1.001
Commissions due to Intermediary Services
-
-
-
376
Other Fee and Commissions
313
464
-
825
Total
4.841
4.276
3.993
4.362
V. Explanations and Notes Related to Changes in Shareholders’ Equity
1.Information on increase due to revaluation of available for sale financial assets
2. Information on increases due to cash flow hedges
3. Reconciliation of foreign exchange differences at beginning and end of current period
4. Information on decrease due to revaluation of available for sale financial assets
5. Information on distribution of profit
In accordance with the decision taken in Ordinary General Assembly, held on 28 March 2012, TL 30.469 is transferred into
extraordinary reserves after allocating TL 1.604 of legal reserves from the net profit of 2011 amounting to TL 32.073. In
accordance with the decision taken in Extra Ordinary General Assembly, held on 27 September 2012, and the permission of
BRSA dated 20 March 2012, the Bank distributed dividend to it shareholders amounting to TL 6.414.
VI. Explanations and Notes Related to Statement of Cash Flows
1.Information on other items and effect of exchange rate on cash and cash equivalents in Cash Flow Statement;
The “others” account included in “operating profit before changes in operating assets and liabilities” are comprised of
net trading gain/loss, impairment loss provision on loans and receivables and other operating income/loss. The “net
increase/ (decrease) in other liabilities” account in “changes in operating assets and liabilities” is comprised of the changes
in miscellaneous liabilities, other liabilities, provision expenses, lease payables and tax liabilities. The effect of change in
foreign exchange rate on cash and cash equivalents as of 31 December 2012 is approximately decrease of TL 6.856 (31
December 2011: increase of TL 24.940).
109
Deutsche Bank
Annual Report 2012
At 31 December 2012
2. Cash and cash equivalents at the beginning of the period
Cash, cash in foreign currency, unrestricted deposits in Central Bank of Turkey, money in transit, cheques purchased,
precious metals, money market operations as well as demand deposits and time deposits whose original maturities are up
to 3 months are defined as cash and cash equivalents.
1 January 2012
1 January 2011
Cash 257
Cash Equivalents
291.268
2.411.138
Balances with Central Bank of Turkey
9.025
16.068
Banks’ Demand Deposits and Time Deposits Whose
Original Maturities Up to 3 Months
112.243
55.070
170.000
2.340.000
Total
291.525
2.411.138
3. Cash and cash equivalents at the end of the period
31 December 2012
Cash 285
Cash Equivalents
140.193
Balances with Central Bank of Turkey
98.505
Banks’ Demand Deposits and Time Deposits Whose
Original Maturities Up to 3 Months
41.688
-
Total
140.478
31 December 2011
257
291.268
9.025
112.243
170.000
291.525
4. Restricted cash and cash equivalents due to legal requirements or other reasons
There are no cash and cash equivalents restricted for the usage of the Bank by legal limitations and other reasons (31
December 2011: None).
There is no additional information that needs to be disclosed in addition to those disclosed in Note 1.
VII. Explanations and Notes Related to Bank’s Risk Group
1.Transactions with the Bank’s risk group; lendings and deposits and other related party transactions outstanding at period
end and income and expenses from such transactions incurred during the period
1.1 Current period
Associates, Subsidiaries Direct and Indirect Other Components in
and Joint Ventures
Shareholders of the Bank
Risk Group
Bank’s Risk Group Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Balance at the Beginning of the Period -
-
45.946
172.542
1.902
-
-
54.073
181.953
955
Funds Borrowed
-
608.570
-
-
-
-
235.170
-
-
Interest and Commission Income
-
-
33.804
213
-
Interest and Commission Expense
-
-
4.475
-
2.018
-
110
Deutsche Bank
Annual Report 2012
At 31 December 2012
1.2 Prior Period
Associates, Subsidiaries Direct and Indirect Other Components in
and Joint Ventures
Shareholders of the Bank
Risk Group
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
-
27.789
163.370
1.636
-
-
45.946
172.542
1.902
Funds Borrowed
-
803.971
-
-
-
-
608.570
-
-
Interest and Commission Income
-
-
26.979
2.387
-
Interest and Commission Expense
-
-
12.296
-
1.517
-
1.3Information on deposits of the Bank’s risk group
Associates, Subsidiaries and Joint Ventures
Non-Cash
Direct and Indirect Shareholders of the Bank
Cash
Non-Cash
Other Components in
Risk Group
Cash
Non-Cash
Deposits
-
23.172
520.337
2.296
-
-
96.701
23.172
31.796
Interest Expenses
-
-
-
4
-
1.969
3.296
-
1.4 Information on forward and option agreements and other similar agreements with the Bank’s risk group
Associates, Subsidiaries and Joint Ventures
Non-Cash
Direct and Indirect Shareholders of the Bank
Cash
Non-Cash
Other Components in
Risk Group
Cash
Transactions at Fair Value
Through Profit and Loss
-
-
3.000.528
2.370.380
-
End of the Period -
-
652.755
3.000.528
-
Total Profit / Loss
-
-
(30.655)
97.060
(114)
Transactions for hedging purposes
-
-
-
-
-
End of the Period
-
-
-
-
-
Total Profit / Loss -
-
-
-
-
Non-Cash
(160)
-
2. Information on the Bank’s risk group
2.1The relations with entities that are included in the Bank’s risk group and controlled by the Bank
The Bank performs various transactions with the group companies as a part of the banking transactions in accordance with
the ordinary bank-client relationship and market conditions within the limitations determined by the Banking Law.
Deutsche Bank
Annual Report 2012
111
At 31 December 2012
2.2 The type of transaction, the amount and its ratio to total transaction volume, the amount of significant items and their
ratios to total items, pricing policy and other issues
Current Period
Priod Period
According to the According to the
Amounts in the Amounts in the
Financial
Financial Amount
Statements%
Amount
Statements%
Banks
13.620
%33
23.392
%21
41.408
%9
24.643
%5
Non-cash Loans
181.953
%58
172.542
%42
Deposits
128.497
%30
26.468
%8
Interest Income on Loans
2.592
%9
2.257
%17
Interest Expense on Deposits
-
-
4
Interest Expense on Funds Borrowed
2.401
%96
10.919
%98
Funds Borrowed
235.170
%100
608.570
%100
Fees and Commissions Received
31.425
%58
27.047
%63
Fees and Commissions Paid
2.074
%23
1.377
%16
Interest Expense on Money Market Placements
2.018
%6
1.517
%4
Other Operating Income
6.083
%81
5.261
%81
Other Operating Expense
7.931
%9
3.119
%5
Derivative Financial Instruments
652.755
%41
3.000.528
%87
Terms of transactions made with group companies are set in accordance with the market prices, if market prices do not
exist cost plus method is used. Except for the situations requiring separate disclosure, there is not any account balance that
is similar in nature and presented as an aggregate line.
2.3 Equity accounting
None.
2.4 Information on transactions such as purchase-sale of immovable and other assets, purchase-sale of service, agent
agreements, financial lease agreements, transfer of the information gained as a result of research and development, licence
agreements, financing (including loans and cash or in kind capital), guarantees, collaterals and management contracts
The Bank has no agreement signed for asset purchases/sales, service rendering, agencies, finance lease contracts, research
and development and licences with the group companies as of 31 December 2012.
The service agreement signed with Deutsche Bank AG includes the conditions of calculation of service fee and cost based
on the annual defined rates and transfer of the calculated amount to the service-rendering bank’s account in cash, for
intermediary services performed by Bank’s sales executives in the transactions of other group companies and intermediary
services performed by sales executives of other group banks.
In accordance with the agreement signed with Deutsche Bank AG, which is valid since January 2004, the Bank pays a service
fee to Deutsche Bank AG in return for global and regional management, leadership and coordination activities provided to the
Bank by the top management of Deutsche Bank AG.
In accordance with the agreement signed with Bebek Varlık Yönetimi A.Ş., which is valid since January 2005, Bebek Varlık
Yönetimi A.Ş. pays a service fee to the Bank in return for the operational services that is provided by the Bank.
In accordance with the agreement signed with Deutsche Bank AG, which is valid since January 2005, Deutsche Bank AG pays a
service fee to the Bank in return for the services related to financial sector cash management products.
Deutsche Securities Menkul Değerler A.Ş. benefits from the Bank’s employees and similar services and hence pays in return
for these services to the Bank in the framework of the signed agreement.
Deutsche Bank
Annual Report 2012
112
At 31 December 2012
2.5 Information on benefits provided to top management
Benefits paid to key management personnel in the current period amounting to TL 15.127 (31 December 2011: TL 13.106).
VIII.Explanations and notes to the domestic, foreign, off-shore branches and foreign representatives of the Bank
Bank has no domestic, foreign or off-shore branches. As of 31 December 2012, number of employees of the Bank is 105
(31 December 2011: 106).
IX. Explanations and notes related to subsequent events
1.Significant events and matters arising subsequent to reporting date and their financial statement effects
None.
SECTION SIX
I. O
ther explatanations related to the Bank’s operations
None.
SECTION SEVEN
EXPLANATIONS ON INDEPENDENT AUDITOR'S REPORT
I.Explanations on the independent auditor’s report
The Bank’s unconsolidated financial statements and footnotes to be disclosed to public as of 31 December 2012 are audited by
Başaran Nas Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (a member of PricewaterhouseCoopers) and the
unconsolidated financial statements present fairly, in all material respects, the financial position of the Bank as of 31 December
2012 and the result of its operations and cash flows for the year then ended.
II. E
xplanations and notes prepared by the independent auditor
None
Global Identity
Deutsche Bank A.Ş. is a leading global investment bank with a strong and
profitable private client franchise.
Our Mission
We compete to be the leading global provider of financial solutions for
demanding clients creating exceptional value for our shareholders and people.
A Passion to Perform
We do business with a passion to perform. We pursue excellence, adopt a
unique approach to produce innovative solutions and build long-term
relationships.
Our Values
Deutsche Bank operates by five core values. Our values show how we bring
our brand to life each and every day.
Performance
We are committed to a result-oriented culture.
Trust
We behave reliably, fairly and honestly.
Teamwork
We benefit from the diversity of our business and our people
by working together to achieve success.
Innovation
We are constantly challenging conventional wisdom and
developing new solutions to meet client requirements.
Customer Focus
We place customers at the center of our activities and they
drive all that we do.
www.deutschebank.com.tr
Deutsche Bank A.Ş.
Trade Registry Number: 244378
Eski Büyükdere Caddesi
Tekfen Tower No: 209 K:17-18
4. Levent 34394 Istanbul / Turkey
Tel: +90 212 317 0100
Fax: +90 212 317 0105

Deutsche Bank A.Ş. Annual Report 2012

Transcription

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