Asya Finans Kurumu A.Ş.

Transcription

Türkiye Finans Katılım Bankası Anonim Şirketi
Publicly Announced Consolidated Financial Statements and
Related Disclosures at March 31, 2016 together with Auditor’s
Review Report.
(Convience translation at publicly announced consolidated financial statements
and Independent Auditor’s Review Report originallay issued in Turkish, See
Note.I of Section three.)
With Independent Auditors’ Review Report Thereon
E
yr
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workıng world
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SMMMAŞ
Eski Büyükdere Cad.
Orjin Maslak No:27
Maslak, SarIyer 34398
Istanbul Turkey
Tel; +902123153000
Fax:+902122308291
ey.com
Ticaret Sicil No: 479920427502
-
Convenicnce translation of (hc auditor’s report originally issucd in Turkish, See Note 1.b of Section three)
REVIEW REPORT ON INTERIM FINANCİAL INFORMATİON
To the Board of Directors of Türkiye Finans Katılım Bankası A.ş.
Introduction
\Ve have reviewed the consolidaıed statemenL of rınancial posıtıon of Türkiye Finans Katılım Bankası A.Ş. (“the
BanW’) and its consolidated subsidiaries (together wiil be referred as “the Group”) at Mareh 31. 2016 and the
relaıed consolidated income staıement, consolidated statement of income and expense iıerns under shareholders’
equity, consolidated staıement of cbanges in sharcholders equfty, consolidated statemenı of cash flows and a
summary of significant accounting policies and other explanawry notes to the consolidated fınancial stalements
for the threc-monthperiod (hen ended. The Bank Managemenı is responsible for the preparation and fair presen
tation of inlerim financial statements in accordance with the “Regulation on Accounting Applications for Banks
and Safeguarding of Documents” published in the Oföcial Gazefle no.26333 dated November 1,2006, and other
regulations on accounting records of Banks published by Banking Regulation and Supervision Agency and dr
culars and interpretations published by Banking Regulatioo and Supervision Authority (together reffered as
BRSA Accounting and Reporiing Regislation) and Turkish Accounting Standard 34 ‘Interim Financial Repor
ting” for those malters not regulated by BRSA Legislation; ıogether referred as “BRSA Accounting and Repor
ting Legislation”. Our responsıhility is to express a conclusıon on (hese interim linancial sıaıements based on our
re yle w.
Scope of Review
We conducıed our review in accordance with the Standard on Review Engagements (SRE) 2410. ‘Limited Re
view of Interim Financial Information Performed by the Independenı Auditor of the Entity”. A review of interim
fınancial information consisıs of making inquiries, primarıly of persons respnnsihle for fınancial reporting pro
cess, and applying analytıcal and other review procedures. A review of interim financial information is substan
tialiy Iess in scope than an ındependent audit performed in accordance ‘vith the lndependent Auditing Standards
and the ohjective of whicb is lo express an opinion on ıhe fınancial statements. Consequentlv. a review of the
interim fınancial information does nol provide assurance that the audit Ibm wiil be aware of alI signiflcant mal
ıers which would have been identifled in an audit. Accordingly, ve do not express an opinion.
Conclusion
Based on nur review, nothing has come ıo nur attention that causes us to helieve that the accompanying consoli
dated financial statements do not give a true view of the fınancial position of Türkiye Finans Katılım Bankası
A.Ş. a March 31, 2016 and the results of its operations and its cash flows for the (hree-month-period then ended
in alI material aspects in accordance with the BRSA Accounting and Reporting Legislation.
Arnembe, brm of Ernst8 Young Global LImited
Ouilding a better
working world
Other matters
The consolidated fınancial statemenıs of the Bank as of December 31, 2015 and March 31, 2015, prepared in
accordance with “Regulation on Accounting Applications for Banks and Safeguarding of Documents” and other
regulations on accounting records of Banks published by Banking Regulation and Supervision Agency and cir
culars and interpretations published by Banking Regulation and Supervision Authority. including of Turkish
Accounting Sıandards,not ıncluded the matters regulated by BRSA legislation, were audited by another audit
Fırm and its consolidated fınancial statements, prepared in accordance with “Regulation on Accounting Applica
tions for Banks and Safeguarding of Documents” published in the Offıcial Gazette no26333 dated 1 November
2006, and other regulations on accounting records of Banks published by Banking Regulation and Supervision
Agency and circulars and interpretations published by Banking Regulation and Supervision Auıhoritv. (together
referred as BRSA Accountıng and Reporting Legislation) and Turkish Accounting Standard 34 “Interim Finan
cial Reporting” except for the mallen regulated by BRSA Legislation, were examined according lo principals
and rules of limited audiLlt 15 mentioned in the report of relevant audit fırrn issued May 5, 2015 ıhat nothing had
come to their attention ıhat causes thern to believe ıhat the consolidated fınancial statemenıs dated March 31,
2015 did not give a true and fair view of the fınancial position, activity results and cash flows of the Bank in
accordance with “Regulation on Accounting Applications for Banks and Safeguarding of Docurnents” published
in the Official Gazette no.26333 dated 1 November 2006, and other regulations on accounting records of Banks
published by Banking Regulation and Supervision Agency and circulars and interpretations published by Ban
king Regulation and Supervision Authority, (together referred as BRSA Accounting and Reporting Legislation)
and Turkish Accounting Standard 34 “Interim Financial Reporting” except for the rnatters regulated by BRSA
Legislation while a positive opinion was giyen regarding the fair presentation of consolidaıed fınancial state
ments of the Bank dated December 31, 2015 in accordance with BRSA Accounting and Financial Reporting
Legislation in the independenı audit report dated February 12, 2016.
Report on other regulatory requirements aHsing from legislation
Based on our review, nothing has corne to our attention that causes us to believe that the fınancial inforrnation
provided in the accompanying interim activity report in Section Vİİ, are not consistent, in alI material respects,
wilh the reviewed consolidated fınancial staternents and disclosures.
Additional paragraph for eonvenicnce translation to English:
As explained in detail in Noıe I.b. of Section Three, the effects of differences between accnunting principles and
standards set out by regulations in conforrnity with “BRSA Accounting and Reporting Legislation” and the ac
coundng principles generaliy accepted in countries in which the accompanying consolidated fınancial staternents
are to be distributed and international Financial Reporting Standards (“IFRS”) have not been quantiüed in the
accornpanying consolidated fınancial statements. Accordingiy, the accompanying consolidated fınancial state
rnents are not intended to present the fınancial position, results of operations and changes in fınancial position
and cash flows in accordance with the accounting princıples generaliy accepted in such countries and IFRS.
Güney Bağırnsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi
rnstStYoung Global Lirnited
A mem
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Fbtmzf. bru Yüce1SN)
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Partner OE7’’
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MayS, 2016
İstanbul, Turkey
A morub,r firm ol Erost t Younq Global Lımited
Türkiye Finans Katilin Bankati AŞ,
Gene: Müdürfuk
Yaka::k Mevk;i Adnan Kahveci (d.
Nc21 34876 Kartai/IST,
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Türkiye’nn Finar.sı
Türkiye Finans t>
w,nrn Tuıkyehniıns corn tl
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THE CONSOLIDATED INTERIM FINANCİAL REPORT
OF TÜRKİYE FİNANS KATILIM BANKASI AŞ AS OF AND
FOR THE THREE MONTH PERİOD ENDED 31 MARCH 2016
Address of the Headquarter of the Bank
Phone and Fax Numbers of the Bank
Website of the Bank
Electronic Mali Address to Contact
Adnan Kahveci Caddesi No:13İ
34876 Yakacık —Kartal! İstanbul
02165867000/02165866326
www.uirkiyefinans.com.tr
rnaliisler®turkiyeflnans.com.tr
The Consolidated Interim Financial Report for the three month period ended 31 March 2016 prepared in
accordance wiih the commıınique of “Financial Staternents and Related Disclosures and Foolnotes to be
Announced to Public” as regıılated by Banking Regulation and Supervision Agency, is comprised of the
foliowing sections:
GENERAL INFORMATİON ABOUT THE PARENT BANK
CONSOLİDATED INTERİM FINANCİAL STATEMENTS OF THE PARENT BANK
EXPLANATIONS ON ACCOUNTİNG POLICIES İN THE CURRENT PERİOD
İNFORMATLON ON FINANCİAL STRUCTURE AND RİSK MANAGEMENT OF THE GROUP
EXPLANATORY DISCLOSURES AND FOOTNOTES ON CONSOLIDKFED İNTERIM FINANCİAL
STATEMENTS
INDEPENDENT AUDİTORS’ REVIEW REPORT
INTERIM REPORT
The subsidiades wlıose fınancial statements have heen consolidated in the consolidated financial report k as
fo il ows:
Suhsidiarles
I-TF Varlık Kiralarna AŞ
2-TFKB Varlık Kiralama AŞ
The Consolidated interim Financial Statements for the tlıree rnonth period ended 31 March 2016 and related
disclosures and footnotes that were subject to independent review, are prepared in accordance wi(h the
Regulation on Accoıınting Applications for Sanks and Safeguarding of Documenıs, Turkish Accotınıing
Standards, Turkish Financial Reporting Standards and the related staternents and guidance and in
cornpliance with the fınancial recordğ of our Bank and, unless stated otherwise, presented in tlıousands of
Turldsh,*ifii>L).
ıL\
Saeed ohammed
A. ALOHAMDI
Chairman of the
üK
CEO
Board of Directors
Halil Cem KARAKAŞ
Audit Commirtee Responsible
For İnternal Audit St
Risk Management
AbdLIIİatifÖZKAYNAK
Finance Executive
Vice President
/yopAı(ER
Legal Reporting St
Financiaİ Control Dep.
Vice President
%AİJk/£UI
Audit Comrnittee Responsible
For Internal Audit St
Risk Managernem
İnformation on the authorized personnel to whorn questions may be directed related to this fınanciai report:
Name-Surname/Title: Sefa SEYHAN / Assistant Vice President
PhoneNr:021658691 86 FaxNr :02165866334
INDEX
SECTIO N O NE
GENERAL INFO RMATIO N
I.
Explanations on the date of establishment and the initial status of the Participation Bank, and the history
the changes in the former status
II.
Explanations regarding the Participation Bank’s shareholder structure, shareholders holding directly or
collectively or individually, the managing and controlling power and changes in the current period, if any and
on the controlling group of the Participation Bank
III.
Explanations regarding the Chairman and the Members of Board of Directors, Audit Committee, Chief
and Assistants, if any, their shares and responsibilities in the Participation Bank
IV.
Explanations on the people and institutions that have qualified shares of the Participation Bank
V.
Summary on the Participation Bank’s functions and areas of activity
VI.
Differences between the Communiqué on Preparation of consolidated financial statements of Banks and
Standards and short explanation about the Institutions subject t o line-by-line method or proportional
Institutions which are deducted from equity or not included in these three methods
VII.
T he existing or potential, actual or legal obstacles on the transfer of shareholder’s equity between the Bank
Subsidiaries or the reimbursement of liabilities
SECTIO N TWO
UNCO NSO LIDATED FINANCIAL STATEMENTS
I.
Balance Sheet (Statement of Financial Position)
II.
Off-balance sheet items
III.
Income statement
IV.
Statement of income/expense items accounted under shareholders’ equity
V.
Statement of changes in shareholders’ equity
VI.
Statement of cash flows
SECTIO N THREE
ACCO UNTING PO LICIES
I.
Basis of presentation
II.
Explanation on Usage Strategy of financial assets and foreign currency transactions
III.
Explanations on Consolidated Subsidiaries
IV.
Explanations on Forward and Option Contracts and Derivative Instruments
V.
Explanations on Profit Share Income and Expenses
VI.
Explanations and Disclosures on Fees and Commission Income and Expenses
VII.
Explanations and Disclosures on Financial Assets
VIII. Explanations on Impairment on Financial Instruments
IX.
Explanat ions on Offsetting of Financial Assets and Liabilities
X.
Explanations on Sales and Repurchase Agreements and Lending of Securities
XI.
Explanations on Assets Held For Sale and Discontinued Operations and Debts Due to T hese Assets
XII.
Explanations and Disclosures on Goodwill and Other Intangible Assets
XIII. Explanations and Disclosures on T angible Assets
XIV. Explanations and Disclosures on Leasing T ransactions
XV.
Explanations on Provisions and Contingent Liabilities
XVI. Eplanation on Contignent Assets
XVII. Explanations on Liabilities Regarding Employee Benefits
XVIII. Explanations on T axation
XIX. Additional Explanations on Borrowings
XX.
Explanations on Share Certificates
XXI. Explanations and Disclosures on Acceptances
XXII. Explanations and Disclosures on Government Incentives
XXIII. Explanations and Disclosures on Segment Reporting
XXIV. Explanations on Other Matters
SECTIO N FO UR
INFO RMATIO N O N FINANCIAL STRUCTURE
I.
Explanations on Equity
II.
Explanations and Disclosures Related to Currency Risk
III.
Explanations and Disclosures Related to Share Risk due from Banking Book
IV.
Explanat ions and Disclosures Relat ed to Liquidity Risk
V.
Explanations on Leverage Ratio
VI.
Explanations on Disclosure Hedge Accounting
VII.
Explanations and disclosures related to risk management target and policies
SECTIO N FIVE
EXPLANATIO NS AND DISCLOSURES O N UNC O NSO LIDATED FINANCIAL STATEMENTS
I.
Explanations Related to the Assets of Consolidated Financial Statements
II.
Explanations Related to the Liabilities of Consolidated Financial Statements
III.
Explanations Related to Consolidated Off-Balance Sheet Items
IV.
Explanations Related to the Consolidated Income Statement
V.
Explanations Related to Consolidated Statement of Cash Flows
VI.
Explanations on the Risk Group of the Participation Bank
VII.
Explanations Related to Subsequent Events
SECTIO N SIX
INDEPENDENT AUDITO R’S REVIEW REPO RT
I.
Explanations on the independent auditor’s review report
II.
Explanations and notes prepared by independent auditors
Page No
1
1
2
3
3
4
4
5
7
8
9
10
12
13
14
14
15
15
15
15
16
17
17
17
17
18
18
18
19
19
19
20
20
20
20
21
21
22
29
31
31
35
36
38
39
48
55
56
60
60
61
62
62
SECTİO N SEVEN
INFO RMATIO N O N INTERIM ACTIVITY REPO RT
I.
Consolidated Activity Report
63
Convenience Translation of Financial Statements
and Related Disclosures and Footnotes
Originally Issued in Turkish, See Note I. in Section Three
Türkiye Finans Katılım Bankası AŞ
Consolidated Interim Financial Report as of and
For the Three-Month Period Ended 31 March 2016
(Thousands of Turkish Lira (TL) unless otherwise stated)
SECTION ONE: GENERAL INFORMATION
I.
Explanations on the date of establishment and the initial status of the Parent Participation Bank, and the
history including the changes in the former status
Participation banks started their operations in accordance with the Provision on Establishment of Participation
Banks of Decree No. 83/7506 dated 16 December 1983, and the related Communiqués issued by Prime Ministry
Undersecretariat of Treasury and by Central Bank of Turkish Republic. Participation banks then continued their
operations in accordance with Banking Act Nr. 4389, dated 18 June 1999, with the change declared in Act Nr.
4491, dated 17 December 1999. In the Provisional Article Nr. 3, of Act Nr. 4491, a transition period of two years
is stated to complete the compliance to Banking Act. The Parent Participation Bank is now operating in accordance with Banking Act Nr. 5411.
The Parent Participation Bank began its operations on 4 November 1991 in accordance with the regulation nr.
83/7506 published on 16 December 1983.
According to the decision made by Board of Directors’ meeting of Anadolu Finans Kurumu AŞ nr. 1047 on 31
May 2005, it is decided that Anadolu Finans Kurumu AŞ is merged with Family Finans Kurumu AŞ.
The merger was realized by transferring all assets, liabilities and off-balance sheet items of Family Finans Kurumu AŞ to Anadolu Finans Kurumu AŞ. Banking Regulation and Supervision Agency (“BRSA”) affirmed both
the transfer agreement signed between Anadolu Finans Kurumu AŞ and Family Finans Kurumu AŞ and alterations in primary contract of Anadolu Finans Kurumu AŞ on 20 October 2005. The decision related to merger,
which was taken on both Participation Banks’ General Assembly Meetings on 23 December 2005, approved by
the decree nr. 1764 dated 28 December 2005 of BRSA.
BRSA approved the title of the Parent Participation Bank to be Türkiye Finans Katılım Bankası AŞ (“the Participation Bank”), during the merger process, with the decision dated 30 November 2005 and Nr. 1747, in compliance with Article 48 of Turkish Commercial Code, and subject to the approval of Council of Ministers. The
change in title of the Participation Bank was registered by T.R. Istanbul Trade Registry Office on 30 December
2005, in compliance with Turkish Commercial Code Nr. 6762.
As 31 March 2016 the Parent Bank operates through 286 (31 December 2015:286) branches with 4,103 (31 December 2015:4,132) employees.
II. Explanations regarding Participation Bank’s shareholder structure, shareholders holding directly or indirectly, collectively or individually, the managing and controlling power and changes in current period, if
any and explanations on the controlling group of the Parent Participation Bank
The shareholder structure of the Parent Participation Bank is presented in note IV.
The shareholder structure of the Participation Bank is presented in note IV.
With the authorization of BRSA, numbered 2489 and dated 28 February 2008, 60% of the Parent Participation
Bank was acquired by the National Commercial Bank. The Parent Participation Bank increased its capital from
TL 292,047 to TL 800,000 with the capital increase in 2008 and from TL 800,000 to TL 1,775,000 with the capital increase in 2012. As per decision has taken by the Extraordinary General Assembly on 29 August 2014, the
Parent Participation Bank’s share capital increased by TL 825,000 from TL 1,775,000 to 2,600,000. The part of
this increase amounting to TL 600,000 was transferred from general reserve and the remaining part amounting to
TL 225,000 was paid in cash. Cash commitment amounting to TL 100,000 recorded into capital accounts on 24
October 2014, and remaining part amounting to TL 125,000 recorded into capital accounts on 19 November 2014
with the approval of Banking Regulation and Supervision Agency.
As of 31 March 2016, the shares are as follows; the National Commercial Bank 67.03%, Boydak group holds
22.34%, Ülker group holds 10.57%; and they have the main controlling power after merger.
As of 31 March 2016, the Parent Participation Bank’s paid-in-capital consists of 2,600,000,000 shares of TL 1
nominal each.
The Parent Participation Bank is controlled by the National Commercial Bank group.
The National Commercial Bank (NCB) established as the first and the biggest bank of Saudi Arabia.
The Bank is performing its banking operations through cross-border in Bahrain and Lebanon. The
headquarter of The National Commercial Bank is located in Jeddah.
1
III.
Explanations regarding the Chairman and the Members of Board of Directors, Audit Committee, Chief
Executive Officer and Assistants, if any, their shares and responsibilities in the Parent Participation Bank
Title
Educational
Degree
Name and Surname
Chairman of the Board of Saeed Mohammed A.
Directors
Alghamdi
M embers of the Board
Mustafa Boydak
University
University
Halil Cem Karakaş
Alsharif Khalid AlGhalib
Doctorate
M aster
Lama Ahmad M Ghazzaoui
University
Majed Hamdan A. Alghamdi M aster
M embers of the Audit
Committee
Presidents
Osman Çelik
University
Halil Cem Karakaş
Doctorate
Lama Ahmad M Ghazzaoui
Abdüllatif ÖZKAYNAK
Hakan Uzun
Bayram UÇAR
Dursun ARSLAN
University
University
M aster
M aster
M aster
Erol GÖRGÜN
Fahri ÖBEK
M aster
M aster
Menduh KARA
University
Mustafa SAĞLAM
Mete M. KANAT
University
M aster
Responsibilities
Chairman of the Board of
Directors
Member of the Board
Member of the Board and
the Audit Committee
Member of the Board
the Audit Committee
Member of the Board
Deputy General M anager
the Audit Committee
the Audit Committee
Finance and Strategy
Treasury
Loans
Operation
Risk M onitoring,
Collections, and Legal
Affairs
Information Technology
Corporate and
Commercial Banking
Retail Banking and
Distribution Channel
Risk Management Center
Ownership
percentage %
1.9
-
-
-
Board Member and Chairman of the Audit Committee Oğuz Kayhan has resigned as of 15 January 2016. On the
same date Halil Cem Karaş has been appointed as the Audit Committee Chairman. Majed Hamdan A. Alghamdi
has been appointed as Member of the Board as of 2 March 2016.Mete M. Kanat has been appoint as Vice General
Manager,who was director of Risk Management Center.
2
IV. Explanations on the people and institutions that have qualified shares of the Parent Participation Bank
Name Surname / Commercial Name
Share
Amounts
Share Ratio %
Paid Up
Shares
Unpaid
Shares
THE NATIONAL COMMERCIAL BANK
GÖZDE GİRİŞİM SERMAYESİ YATIRIM
ORTAKLIĞI A.Ş.
(HACI) MUSTAFA BOYDAK (1934)
BOYDAK HOLDİNG A.Ş.
MUSTAFA BOYDAK (1963 - Sami's son)
BEKİR BOYDAK
MEMDUH BOYDAK
YUSUF BOYDAK
ŞÜKRÜ BOYDAK
HACI BOYDAK
V.
1,742,676
67.03
1,742,676
-
274,838
60,994
58,090
10.57
2.35
2.23
274,838
60,994
58,090
-
49,275
49,275
49,275
46,381
41,080
39,521
1.90
1.90
1.90
1.78
1.58
1.52
49,275
49,275
49,275
46,381
41,080
39,521
-
Summary on the Parent Participation Bank’s functions and areas of activity
The Parent Participation Bank operates in accordance with the principles of interest-free banking as a participation bank, by collecting funds through current accounts and profit sharing accounts, and lending such funds
through production support, finance lease and profit/loss sharing partnership.
The Parent Participation Bank has two ways of collecting funds; current accounts and profit sharing accounts.
The Participation Bank classifies current accounts and profit sharing accounts in accordance with their maturities
in its accounting system. Profit sharing accounts are categorized into five different maturity groups; one month,
up to three months (three months included), up to six months (six months included), up to one year and one year
and more than one year (one month, three months, six months and one year profit share payment).
The Parent Participation Bank could determine the participation rates on profit/loss sharing accounts with respect
to the maturity group of Turkish Lira and foreign currency accounts, separately under the limitation that the participation rate on loss shall not be less than 50%, for different currency type, amount and maturity groups specifically.
The Parent Participation Bank constitutes specific fund pools, allocated to the individually predetermined projects
for financing purposes. Profit sharing accounts, which are part of the funds collected for project financing purpose, are distinguished from others with respect to the terms, accounted separately from the others and it is not allowed to make any transfers from these accounts to any other maturity groups. Specific fund pools are clarified at
the end of the financing period.
In addition to ordinary banking activities, the Parent Participation Bank has services through branches. It has insurance agency operations through Eureko Sigorta, Işık Sigorta, Aviva Sigorta, Neova Sigorta, Groupama Sigorta,and HDI Sigorta. Besides, it has private pension insurance agency operations on behalf of Groupama Emeklilik
and Garanti Emeklilik. In addition, it has stock broker agency services on behalf of Bizim Menkul Değerler A.Ş.
On the other hand Parent Participation Bank mainly has services such as letters of guarantee, import credits and
acceptance credits and other kind of non-cash credits as well.
The Parent Participation Bank's operations are not limited as mentioned above. In case of any transaction else
made, not mentioned above, and considered as in favor of participating bank, upon the request of the board of directors, this case is adjudicated by general meeting and is proceeded to be got required approval from competent
authority and depends on the approval of Ministry of commerce and customs. Thus, the approved decision is
added on main agreement.
TF Varlık Kiralama AŞ and TFKB Varlık Kiralama AŞ which are wholly owned by the Parent Participation
Bank have been established to generate (leasing/rental) income by leasing assets back to the originating company
which were taken over from the originating company; by issuing leasing certificate related to aforementioned
leasing (rental) income and then transferring the related assets back to the originating company.
3
VI. Differences Between the Communiqué on Preparation of Consolidated Financial Statements of Banks and
Turkish Accounting Standards and Short Explanation About the Institutions Subject to Line-by-Line
Method or Proportional Consolidation and Institutions Which are Deducted From Equity or Not Included
in These Three Methods
TF Varlık Kiralama AŞ, which was established on February 11, 2013 and the subsidiary of the Parent
Participation Bank with 100% ownership is fully consolidated in the consolidated financial statements of the
Participation Bank starting from 30 June 2013.
TFKB Varlık Kiralama AŞ, which was established on July 8,2014 and the subsidiary of the Parent Participation
Bank with 100% ownership is fully consolidated in the consolidated financial statements of the Participation
Bank from December 31, 2014.
VII. The Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholder’s Equity Between the
Parent Bank and Its Subsidiaries or the Reimbursement of Liabilities
The transfer of shareholder’s equity between the Parent Bank and its subsidiaries is not in question.
There is no restriction on existing or potential, actual or legal obstacles on the Reimbursement of Liabilities between the Parent Bank and its subsidiaries. The Parent Bank can receive or pay the amounts regarding rendering
and getting services from its subsidiaries within the framework service agreements.
4
SECTION TWO
CONSOLIDATED FINANCIAL STATEMENTS
TÜRKİYE FİNANS KATILIM BANKASI AŞ CONSOLIDATED BALANCE SHEET (Statement of Financial Position)
THOUSAND TURKISH LIRA
ASSETS
I.
II.
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.2.3
2.2.4
III.
IV.
V.
5.1
5.2
5.3
VI.
6.1
6.1.1
6.1.2
6.1.3
6.2
6.3
VII.
VIII.
8.1
8.2
8.2.1
8.2.2
IX.
9.1
9.2
X.
10.1
10.2
10.2.1
10.2.2
XI.
11.1
11.2
11.3
11.4
XII.
12.1
12.2
12.3
XIII.
XIV.
14.1
14.2
XV.
XVI.
16.1
16.2
XVII.
CASH AND BALANCES WITH CENTRAL BANK
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND
LOSS (Net)
Financial assets held for trading
Government debt securities
Equity securities
Derivative financial assets held for trading
Other marketable securities
Financial assets at fair value through profit or loss
Equity securities
Loans
BANKS
MONEY MARKET PLACEMENTS
FINANCIAL ASSETS AVAILABLE FOR SALE (Net)
Equity securities
LOANS
Loans
Loans to the Bank's Risk Group
Other
Non-performing loans
Specific provisions (-)
INVESTMENTS HELD TO MATURITY (Net)
INVESTMENTS IN ASSOCIATES (Net)
Consolidated under equity method
Unconsolidated associates
Financial investments
Non-financial investments
INVESTMENTS IN SUBSIDIARIES (Net)
Unconsolidated financial subsidiaries
Unconsolidated non-financial subsidiaries
JOINTLY CONTROLLED ENTITIES (JOINT VENTURES) (Net)
Consolidated under equity method
Unconsolidated associates
Financial investments
Non-Financial investments
LEASE RECEIVABLES (Net)
Finance lease receivables
Operating lease receivables
Other
Unearned income ( - )
DERIVATIVE FINANCIAL ASSETS HELD FOR RISK
MANAGEMENT
Fair value hedges
Cash flow hedges
Net foreign investment hedges
TANGIBLE ASSETS (Net)
INTANGIBLE ASSETS (Net)
Goodwill
Other intangibles
INVESTMENT PROPERTY (Net)
TAX ASSET
Current tax asset
Deferred tax asset
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
(Net)
17.1
Assets held for sale
17.2
Assets of discontinued operations
XVIII. OTHER ASSETS
TOTAL ASSETS
Footnotes
(5-I)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
CURRENT PERIOD
Reviewed
(31/03/2016)
TL
FC
Total
485,440
5,236,922
5,722,362
18,642
18,642
18,258
384
65,484
666,843
4,734
662,109
24,730,853
24,184,472
202,515
23,981,957
1,389,895
(843,514)
767,523
1,725,269
2,045,770
(320,501)
15,393
15,393
14,691
702
429,239
1,274,154
164
1,273,990
2,485,328
2,484,163
61,147
2,423,016
8,262
(7,097)
-
34,035
34,035
32,949
1,086
494,723
1,940,997
4,898
1,936,099
27,216,181
26,668,635
263,662
26,404,973
1,398,157
(850,611)
767,523
1,725,269
2,045,770
(320,501)
PRIOR PERIOD
Audited
(31/12/2015)
TL
FC
644,619
4,727,884
10,708
10,708
9,893
815
47,590
663,546
4,734
658,812
24,784,481
24,287,401
104,129
24,183,272
1,242,557
(745,477)
888,893
1,782,011
2,129,893
(347,882)
33,541
33,541
32,914
627
177,779
1,233,861
163
1,233,698
2,330,410
2,328,784
61,734
2,267,050
8,285
(6,659)
-
Total
5,372,503
44,249
44,249
42,807
1,442
225,369
1,897,407
4,897
1,892,510
27,114,891
26,616,185
165,863
26,450,322
1,250,842
(752,136)
888,893
1,782,011
2,129,893
(347,882)
(13)
39,378
39,378
518,126
58,315
58,315
66,696
66,696
-
39,378
39,378
518,126
58,315
58,315
66,696
66,696
48,627
48,627
474,724
54,371
54,371
83,028
83,028
-
48,627
48,627
474,724
54,371
54,371
83,028
83,028
(14)
256
-
256
1,732
-
1,732
(15)
256
463,422
38,921
256
502,343
1,732
489,333
58,438
1,732
547,771
29,606,247
9,479,957
39,086,204
29,973,663
8,561,913
38,535,576
(12)
The accompanying notes are an integral part of these consolidated interim financial statements.
5
TÜRKİYE FİNANS KATILIM BANKASI AŞ CONSOLIDATED BALANCE SHEET (Statement of Financial Position)
LIABILITIES AND EQUITY
Footnotes
(5-II)
I.
1.1
1.2
II.
III.
IV.
V.
VI.
VII.
VIII.
8.1
8.2
8.3
8.4
IX.
9.1
9.2
9.3
X.
10.1
10.2
10.3
10.4
10.5
XI.
11.1
11.2
XII.
12.1
12.2
XIII.
XIV.
14.1
14.2
14.2.1
14.2.2
14.2.3
14.2.4
14.2.5
14.2.6
14.2.7
14.2.8
14.2.9
14.2.10
14.3
14.3.1
14.3.2
14.3.3
14.3.4
14.4
14.4.1
14.4.2
14.5
CURRENT PERIOD
Reviewed
(31/03/2016)
FC
FUNDS COLLECTED
Funds from risk group of the Bank
Other
DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING
FUNDS BORROWED
MONEY MARKET BALANCES
MARKETABLE SECURITIES ISSUED (Net)
MISCELLANEOUS PAYABLES
OTHER LIABILITIES
LEASE PAYABLES (Net)
Finance lease payables
Operating lease payables
Other
Deferred finance lease expenses ( - )
DERIVATIVE FINANCIAL LIABILITIES HELD FOR RISK
MANAGEMENT
Fair value hedges
Cash flow hedges
PROVISIONS
General loan loss provision
Provision for Restructuring
Reserve for employee benefits
Insurance technical reserves (Net)
Other provisions
TAX LIABILITY
Current tax liability
Deferred tax liability
LIABILITIES FOR ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS (Net)
Assets held for sale
Assets of discontinued operations
SUBORDINATED DEBTS
SHAREHOLDERS' EQUITY
Paid-in capital
Capital reserves
Share premium
Share cancellation profits
Securities value increase fund
Tangible assets revaluation reserve
Intangible assets revaluation reserve
Investment property revaluation reserve
Bonus shares obtained from associates, subsidiaries and jointly controlled
entities (Joint Ventures)
Hedging reserves (effective portion)
Accumulated revaluation reserves on assets held for sale and discontinued
operations
Other capital reserves
Profit reserves
Legal reserves
Statutory reserves
Extraordinary reserves
Other profit reserves
Profit or loss
Prior years' profit/loss
Current period net profit/loss
Non-controlling interest
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
(1)
(2)
(3)
(4)
(5)
(6)
TL
Total
PRIOR PERIOD
Audited
(31/12/2015)
FC
TL
Total
11,787,374
121,481
11,665,893
34,632
741,432
906,390
428,373
735,620
675,348
-
10,572,565
329,298
10,243,267
91,911
4,145,977
3,723,131
328,425
44,052
-
22,359,939
450,779
21,909,160
126,543
4,887,409
906,390
4,151,504
1,064,045
719,400
-
12,059,602
123,742
11,935,860
19,044
751,361
972,544
395,662
725,072
746,139
-
10,117,117
343,115
9,774,002
14,310
3,771,921
3,707,326
293,720
75,369
-
22,176,719
466,857
21,709,862
33,354
4,523,282
972,544
4,102,988
1,018,792
821,508
-
379,067
258,911
63,235
56,921
57,248
57,248
-
197,403
197,403
62,855
62,855
-
197,403
197,403
441,922
258,911
63,235
119,776
57,248
57,248
-
375,251
245,432
73,090
56,729
80,452
80,452
-
284,543
284,543
65,029
65,029
-
284,543
284,543
440,280
245,432
73,090
121,758
80,452
80,452
-
3,494,493
2,600,000
103,674
(1,446)
115,942
-
717,418
(37,510)
(37,510)
(5,440)
-
717,418
3,456,983
2,600,000
66,164
(6,886)
115,942
-
3,403,321
2,600,000
99,140
(5,980)
115,942
-
733,023
(55,230)
(55,230)
(13,647)
-
733,023
3,348,091
2,600,000
43,910
(19,627)
115,942
-
(32,070)
(32,070)
(41,583)
(41,583)
(7)
(8)
(9)
(10)
(11)
(10,822)
703,760
115,802
587,624
334
87,059
421
86,638
19,239,977
19,846,227
(10,822)
703,760
115,802
587,624
334
87,059
421
86,638
39,086,204
6
(10,822)
442,485
104,498
337,653
334
261,696
198
261,498
19,528,448
19,007,128
(10,822)
442,485
104,498
337,653
334
261,696
198
261,498
38,535,576
TÜRKİYE FİNANS KATILIM BANKASI AŞ
CONSOLIDATED OFF-BALANCE SHEET ITEMS
Footnotes
(5-III)
(5-III)
A. OFF-BALANCE SHEET COMMITMENTS AND CONTINGENCIES (I+II+III)
I.
GUARANTEES AND SURETIES
1.1.
Letters of guarantee
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
1.2.
Bank acceptances
1.2.1.
Import letter of acceptance
1.2.2.
Other bank acceptances
1.3.
Letters of credit
1.3.1.
Documentary letters of credit
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.
Other guarantees
1.7.
Other sureties
II.
COMMITMENTS
2.1.
Irrevocable commitments
2.1.1.
Forward asset purchase and sale commitments
2.1.2.
Share capital commitments to associates and subsidiaries
2.1.3.
Loan granting commitments
2.1.4.
Securities issuance brokerage commitments
2.1.5.
Commitments for reserve deposit requirements
2.1.6.
Commitments for cheque payments
2.1.7.
Tax and fund obligations on export commitments
2.1.8.
Commitments for credit card limits
2.1.9.
Commitments for credit cards and banking services promotions
2.1.10. Receivables from "short" sale commitments on securities
2.1.11. Payables from "short" sale commitments on securities
2.1.12. Other irrevocable commitments
2.2.
Revocable commitments
2.2.1.
Revocable loan granting commitments
2.2.2.
Other revocable commitments
III.
DERIVATIVE FINANCIAL INSTRUMENTS
3.1
Derivative financial instruments held for risk management
3.1.1
Fair value hedges
3.1.2
Cash flow hedges
3.1.3
3.2
Trading derivatives
3.2.1
Forward foreign currency buy/sell transactions
3.2.1.1 Forward foreign currency transactions-buy
3.2.1.2 Forward foreign currency transactions-sell
3.2.2
Other forward buy/sell transactions
3.3
Other
B. CUSTODY AND PLEDGED ITEMS (IV+V+VI)
IV.
ITEMS HELD IN CUSTODY
4.1.
Customers' securities held
4.2.
Investment securities held in custody
4.3.
Checks received for collection
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
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)
(1)
(1)
CURRENT PERIOD
PRIOR PERIOD
Reviewed
Audited
(31/03/2016)
(31/12/2015)
TL
12,806,782
7,206,665
7,203,979
180,396
7,023,583
2,686
2,686
2,691,041
2,691,041
347,772
20,351
1,414,806
2,616
863,467
2,102
39,927
2,909,076
214,000
214,000
2,695,076
2,695,076
686,952
2,008,124
404,015,867
4,716,038
2,821,715
973,330
379
920,614
399,299,829
40,215
126,876,382
3,754,851
79,357,250
189,113,807
157,324
-
FC
18,510,357
5,346,372
3,919,633
3,919,633
538,481
538,481
885,882
885,882
2,376
1,392,035
1,392,035
1,392,035
11,771,950
2,062,948
236,958
1,825,990
9,709,002
9,004,408
5,318,578
3,685,830
704,594
38,525,235
4,094,578
270,284
569,438
2,702,231
552,625
34,379,105
9,576
5,370,102
583,262
243,808
28,101,046
71,311
51,552
Total
31,317,139
12,553,037
11,123,612
180,396
10,943,216
541,167
541,167
885,882
885,882
2,376
4,083,076
4,083,076
1,739,807
20,351
1,414,806
2,616
863,467
2,102
39,927
14,681,026
2,276,948
450,958
1,825,990
12,404,078
11,699,484
6,005,530
5,693,954
704,594
442,541,102
8,810,616
3,091,999
1,542,768
2,702,610
1,473,239
433,678,934
49,791
132,246,484
4,338,113
79,601,058
217,214,853
228,635
51,552
TL
12,133,595
7,042,486
7,038,213
181,789
6,856,424
2,580
2,580
1,693
1,693
2,583,593
2,583,593
336,628
18,558
1,337,586
2,580
852,675
1,970
33,596
2,507,516
214,000
214,000
2,293,516
2,293,516
622,993
1,670,523
395,013,585
14,049,491
12,143,447
819,930
424
1,085,690
380,964,094
40,665
119,906,872
3,357,413
75,565,924
181,893,111
200,109
-
FC
17,495,332
5,459,918
3,967,993
3,967,993
573,084
573,084
917,127
917,127
1,714
1,139,180
1,139,180
1,139,180
10,896,234
2,044,270
240,293
1,803,977
8,851,964
8,117,319
4,798,331
3,318,988
734,645
38,796,069
4,326,143
269,199
692,531
2,816,013
548,400
34,416,950
10,498
5,131,040
615,454
301,340
28,187,308
171,310
52,976
Total
29,628,927
12,502,404
11,006,206
181,789
10,824,417
575,664
575,664
918,820
918,820
1,714
3,722,773
3,722,773
1,475,808
18,558
1,337,586
2,580
852,675
1,970
33,596
13,403,750
2,258,270
454,293
1,803,977
11,145,480
10,410,835
5,421,324
4,989,511
734,645
433,809,654
18,375,634
12,412,646
1,512,461
2,816,437
1,634,090
415,381,044
51,163
125,037,912
3,972,867
75,867,264
210,080,419
371,419
52,976
416,822,649
57,035,592
473,858,241
407,147,180
56,291,401
463,438,581
7
TÜRKİYE FİNANS KATILIM BANKASI AŞ CONSOLIDATED INCOME STATEMENT
INCOME AND EXPENSE ITEMS
Footnotes
(5-IV)
I.
1.1
1.2
1.3
1.4
1.5
1.5.1
1.5.2
1.5.3
1.5.4
1.6
1.7
II.
2.1
2.2
2.3
2.4
2.5
III.
IV.
4.1
4.1.1
4.1.2
4.2
4.2.1
4.2.2
V.
VI.
6.1
6.2
6.3
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
PROFIT SHARE INCOME
Profit share on loans
Profit share on reserve deposits
Profit share on banks
Profit share on money market placements
Profit share on marketable securities portfolio
Financial assets held for trading
Financial assets at fair value through profit and loss
Financial assets available for sale
Investments held to maturity
Finance lease income
Other profit share income
PROFIT SHARE EXPENSE
Expense on profit sharing accounts
Profit share expense on funds borrowed
Profit share expense on money market borrowings
Expense on securities issued
Other profit share expense
NET PROFIT SHARE INCOME / EXPENSE (I - II)
NET FEES AND COMMISSIONS INCOME / EXPENSE
Fees and commisions received
Non-Cash loans
Other
Fees and commisions paid
Non-Cash loans
Other
DIVIDEND INCOME
TRADING INCOME/EXPENSES (Net)
Gains/Losses on securities trading
Derivative financial transactions gains/losses
Foreign exchange gains/losses
OTHER OPERATING INCOME
TOTAL OPERATING INCOME / EXPENSE (III+IV+V+VI+VII)
PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-)
OTHER OPERATING EXPENSES (-)
NET OPERATING INCOME/EXPENSE (VIII-IX-X)
AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER
PROFIT/LOSS FROM ASSOCIATES ACCOUNTED FOR USING THE EQUITY
METHOD
XIV.
NET MONETARY POSITION GAIN/LOSS
XV.
PROFIT/LOSS ON CONTINUING OPERATIONS BEFORE TAX (XI+...+XIV)
XVI.
TAX PROVISION FOR CONTINUING OPERATIONS (±)
16.1
Current tax provision
16.2
Deferred tax provision
XVII. NET PERIOD PROFIT/LOSS FROM CONTUNUING OPERATIONS (XV±XVI)
XVIII. INCOME ON DISCONTINUED OPERATIONS
18.1
Income on assets held for sale
18.2
Income on sale of associates, subsidiaries and jointly controlled entities (Joint Vent.)
18.3
Income on other discontinued operations
XIX.
EXPENSE ON DISCONTINUED OPERATIONS (-)
19.1
Expense on assets held for sale
19.2
Expense on sale of associates, subsidiaries and jointly controlled entities (Joint Vent.)
19.3
Expense on other discontinued operations
XX.
PROFIT/(LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII-XIX)
XXI.
TAX PROVISION FOR DISCONTINUED OPERATIONS (±)
21.1
Current tax provision
21.2
Deferred tax provision
XXII. NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI)
XXIII. NET PROFIT/LOSS (XVII+XXII)
23.1
Group’s Profit / Loss
23.2
Non-controlling Interest (-)
(1)
(2)
(9)
(9)
(3)
(4)
(5)
(6)
Reviewed
CURRENT PERIOD
Reviewed
PRIOR PERIOD
1 January- 31 March 2016
764,021
664,038
7,445
1
45,080
26,077
19,003
39,620
7,837
361,139
224,041
50,300
16,811
56,523
13,464
402,882
36,337
71,883
28,416
43,467
35,546
35,546
(7,521)
123
(95,919)
88,275
96,501
528,199
(204,811)
(212,134)
111,254
-
1 January- 31 March 2015
658,171
572,541
514
68
42,920
26,133
16,787
32,617
9,511
335,752
217,079
54,431
14,320
49,871
51
322,419
39,113
63,729
26,466
37,263
24,616
24,616
17,206
320
22,978
(6,092)
36,277
415,015
(130,640)
(203,220)
81,155
-
111,254
(24,616)
(13,733)
(10,883)
86,638
86,638
86,638
-
81,155
(16,854)
(18,111)
1,257
64,301
64,301
64,301
-
(7)
(8)
8
TÜRKİYE FİNANS KATILIM BANKASI AŞ CONSOLIDATED STATEMENT OF INCOME/EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS' EQUITY
INCOME/EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS' EQUITY
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
GAIN/LOSS ON DERIVATIVE FINANCIAL ASSETS HELD FOR CASH FLOW HEDGES
V.
(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
NET INCOME/EXPENSE ITEMS ACCOUNTED DIRECTLY UNDER SHAREHOLDERS'
X.
EQUITY (I+II+…+IX)
XI. CURRENT PERIOD PROFIT/LOSSES
1.1
Net changes in fair value of securities (transferred to income statement)
Gains/losses on derivative financial assets held for cash flow hedges, reclassified and recorded in
1.2
income statement
Gains/losses on hedges of net investment in foreign operations, reclassified and recorded in income
1.3
statement
Others
1.4
CURRENT PERIOD
PRIOR PERIOD
Reviewed
Reviewed
(01/01/2016 - 31/03/2016)
(01/01/2015 - 31/03/2015)
I.
XII.
TOTAL PROFIT/LOSS ACCOUNTED FOR THE CURRENT PERIOD (X±XI)
15,926
-
8,737
-
11,891
(15,072)
(5,563)
22,254
86,638
(1)
565
(5,770)
64,301
1,160
-
-
86,639
63,141
108,892
58,531
9
TÜRKİYE FİNANS KATILIM BANKASI AŞ CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Footnotes
Effect of
inflation
Accounting on
Capital and
Other Capital
Reserves
Share
Premium
Share
Certificate
Cancellation
Profits
2,600,000
-
-
-
-
-
-
-
-
-
-
-
-
-
2,600,000
-
-
Paid-in
Capital
Legal
Reserves
Prior Period
Other
Current Period Net
Net Income /
Reserves
Income / (Loss)
(Loss)
Revaluation
Surplus on Bonus Shares of
Tangible and
Equity
Intangible
Participations
Assets
Securities
Value
Increase
Fund
Hedge
Reserves
Accu.
Rev.Surp. on
Assets Held for
Sale and Assets
of Discont.
Op.s
Total
Shareholders'
Equity
-
3,150,283
-
-
Statutory
Reserves
Extraordinary
Reserves
88,826
-
19,097
334,427
-
11,370
115,942
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
88,826
-
19,097
(15,711)
334,427
-
11,370
115,942
-
(3,668)
-
3,150,283
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,990
-
-
-
-
6,990
-
-
-
-
-
-
-
-
-
-
-
-
-
(12,760)
-
(12,760)
-
-
-
-
-
-
-
-
-
-
-
-
-
(12,760)
-
(12,760)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
54
(199)
198
-
-
-
-
-
53
-
-
-
-
-
-
-
-
64,301
-
-
-
-
-
-
64,301
-
-
-
-
15,672
-
318,556
-
(334,228)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,672
-
318,556
-
(334,228)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,600,000
-
-
-
104,498
-
337,653
(15,657)
64,301
198
18,360
115,942
-
(16,428)
-
3,208,867
PRIOR PERIOD
Reviewed
(01.01-31.03.2015)
I.
II.
2.1
Balances at beginning of the period
Correction made as per TAS 8
Effect of corrections
2.2
Effect of changes in accounting policies
III.
Adjusted balances at beginning of the period (I+II)
IV.
V.
VI.
6.1
6.2
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
14.1
14.2
XV.
XVI.
XVII.
XVIII
.XIX.
XX.
20.1
20.2
20.3
Changes during the period
Mergers
Market value changes of securities
Hedging reserves
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
Translation differences
Changes resulted from disposal of assets
Changes resulted from resclassification of assets
Effect of change in equities of associates on bank's equity
Capital increase
Cash
Internal sources
Share issuance
Share cancellation profits
Capital reserves from inflation adjustments to paid-in capital
Others
Current period net profit/loss
Profit distribution
Dividends
Transfers to reserves
Others
Balances at the end of the period (I+II+III+…+XVI+XVII+XVIII)
(15,711)
10
(3,668)
-
-
-
TÜRKİYE FİNANS KATILIM BANKASI AŞ CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Footnotes
Paid-in Capital
Inflation
Share
Adjustment
Premium
Paid-in
Capital
Share
Certificate
Cancellation
Profits
Legal
Reserves
Statutory
Reserves
Extraordinary
Reserves
Other
Reserves
Current Period
Net Income /
(Loss)
Prior Period
Net Income /
(Loss)
Securities
Value
Increase
Fund
Revaluation
Surplus on
Tangible and
Intangible
Assets
Bonus Shares
of Equity
Participations
115,942
-
Accu.
Total
Rev.Surp. on Shareholders’
Assets Held for Equity Except
Sale and
NonAssets of
controlling
Discont. Op.s
Interest
Hedging
Reserves
Noncontrolling
Interest
Total
Shareholders'
Equity
CURRENT PERIOD
Reviewed
(01.01-31.03.2016)
I.
Balances at beginning of the period
Changes during the period
II.
Mergers
III.
Market value changes of securities
IV.
Hedging reserves
4.1
Cash flow hedge
4.2
Hedge of net investment in foreign operations
V.
Revaluation surplus on tangible assets
VI.
Revaluation surplus on intangible assets
VII.
Bonus shares of associates, subsidiaries and joint-ventures
VIII. Translation differences
IX.
Changes resulted from disposal of assets
X.
Changes resulted from resclassification of assets
XI.
Effect of change in equities of associates on bank's equity
XII.
Capital increase
12.1
Cash
12.2
Internal sources
XIII. Share issuance
XIV. Share cancellation profits
XV.
Capital reserves from inflation adjustments to paid-in capital
XVI. Others
XVII. Current period net profit/loss
XVIII. Profit distribution
18.1
Dividends
18.2
Transfers to reserves
18.3
Others
Balances at end of the period (I+II+III+…+XVI+XVII+XVIII)
2,600,000
-
-
-
104,498
-
337,653
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,600,000
-
-
-
(10,488)
261,498
198
-
-
-
12,741
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(223)
86,638
223
-
-
-
11,304
-
-
249,971
-
-
(261,275)
-
-
-
11,304
-
-
249,971
-
-
(261,275)
-
-
-
115,802
-
587,624
(10,488)
86,638
11
421
(19,627)
(6,886)
(41,583)
-
3,348,091
-
3,348,091
-
-
12,741
-
12,741
9,513
9,513
-
-
9,513
9,513
-
-
9,513
9,513
-
-
-
-
-
-
-
-
-
86,638
-
86,638
-
-
-
-
-
-
-
-
-
-
-
-
-
-
115,942
-
-
3,456,983
-
3,456,983
(32,070)
TÜRKİYE FİNANS KATILIM BANKASI AŞ
CONSOLIDATED STATEMENT OF CASH FLOWS
A.
Footnotes
CURRENT PERIOD
Reviewed
PRIOR PERIOD
Reviewed
(5-V)
(01/01/2016 - 31/03/2016)
(01/01/2015 - 31/03/2015)
CASH FLOWS FROM BANKING OPERATIONS
1.1
Operating profit before changes in operating assets and liabilities
1.1.1
Profit share income received
1.1.2
Profit share expense paid
1.1.3
Dividend received
1.1.4
Fees and commissions received
1.1.5
Other income
1.1.6
Collections from previously written off loans and other receivables
1.1.7
Cash payments to personnel and service suppliers
1.1.8
Taxes paid
1.1.9
Other
1.2
Changes in Operating Assets and Liabilities
1.2.1
Net (Increase) Decrease in financial assets held for trading
1.2.2
Net( Increase) Decrease in financial assets at fair value through profit or loss
1.2.3
Net (Increase) Decrease in due from banks and other financial institutions
1.2.4
Net (Increase) Decrease in loans
1.2.5
Net (Increase) Decrease in other assets
1.2.6
Net Increase (Decrease) in bank deposits
1.2.7
Net Increase (Decrease) in other deposits
1.2.8
Net Increase (Decrease) in funds borrowed
1.2.9
Net Increase (Decrease) in due payables
1.2.10
Net Increase (Decrease) in other liabilities
I.
Net cash provided from banking operations
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
Net cash provided from investing activities
2.1
Cash paid for purchase of entities under common control, associates and subsidiaries
2.2
Cash obtained from sale of entities under common control, associates and subsidiaries
2.3
Purchases of tangible assets
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 investment securities
2.8
Cash obtained from sale of investment securities
2.9
Other
C.
CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net cash provided from financing activities
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
3.5
Payments for financial leases
3.6
Others
IV.
393,631
771,752
(309,210)
71,883
12,464
86,537
(153,938)
(33,975)
(51,882)
(8,682)
634,838
(285,668)
63,729
14,030
36,131
(147,721)
(36,529)
(287,492)
337,113
(1,012,687)
21,807
(124,571)
40,608
74,124
107,188
360,219
(142,262)
(1,258,256)
(1,621,666)
(96,644)
113,033
705,150
743,584
402,112
730,744
(1,021,369)
(37,828)
9,873
(65,387)
719
(171,043)
97,883
(250,000)
350,000
-
(20,931)
83
(150,806)
492,901
(311,374)
-
32,106
645,683
212,106
(180,000)
-
645,629
54
Effect of change in foreign exchange rate on cash and cash equivalents
(96,939)
471,831
V.
Net increase/(decrease) in cash and cash equivalents
628,083
106,018
VI.
Cash and cash equivalents at beginning of period
1,869,326
2,965,655
VII.
Cash and cash equivalents at end of period
2,497,409
3,071,673
(1)
12
SECTION THREE: ACCOUNTING POLICIES
I.
Basis of Presentation
a. The preparation of the financial statements and related notes and explanations in accordance with the
Turkish Accounting Standards and Regulation on Accounting Applications for Banks and Safeguarding of
Documents:
The consolidated financial statements have been prepared in accordance with the “Regulation on Accounting Applications for Banks and Safeguarding of Documents” related with Banking Act numbered 5411 published in the Official Gazette no.26333 dated 1 November 2006, which refers to “Turkish Accounting Standards” (“TAS”), put into
effect by Public Oversight Accounting and Auditing Standards Authority (“KGK”), and “Turkish Financial Reporting Standards” (“TFRS”) issued by the “Turkish Accounting Standards Board” (“TASB”) and additional explanations and notes related to them and other decrees, notes and explanations related to accounting and financial reporting principles (all “Turkish Accounting Standards” or “TAS”) published by the Banking Regulation and Supervision
Agency (“BRSA”). The format and content of the publicly announced consolidated financial statements and notes to
these statements have been prepared in accordance with the “Communiqué on Publicly Announced Financial Statements, Explanations and Notes to These Financial Statements”, published in Official Gazette no. 28337, dated 28
June 2012, and amendments to this Communiqué. The Parent Bank maintains its books in Turkish Lira in accordance with the Banking Act, Turkish Commercial Code and Turkish Tax Legislation.
The consolidated financial statements have been prepared in TL, under the historical cost convention except for the
financial assets and liabilities and properties classified as revalued tangible assets carried at fair value.
The preparation of consolidated financial statements in conformity with TAS requires the use of certain critical accounting estimates by the Parent 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. Assumptions and estimates that are used in the preparation of the accompanying financial statements are explained in the following related disclosures.
The amendments of TAS and TFRS, effectiveness date is 1 January 2016, have no material impact on the Bank’s
accounting policies, financial position and performance. The amendments of TAS and TFRS, except TFRS 9 Financial Instruments (2011 Version) will have no impact on the accounting policies, financial condition and performance
of the Bank. The Bank assesses the impact of TFRS 9 Financial Instruments standard.
b. Additional paragraph for convenience translation to English
The differences between accounting principles, as described in the preceding paragraphs and 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.
c. Accounting policies and valuation principles applied in the presentation of consolidated financial statements:
The accounting policies and valuation principles applied in the preparation of consolidated financial statements, are
determined and applied in accordance with regulations, communiqués, explanations and circulars on accounting and
financial reporting principles published by the BRSA, and in case where there is no special regulation made by the
BRSA, in accordance with principles in the context of TAS and TFRS, and are consistent with the accounting policies applied in the annual financial statements of the year ended December 31,2015.The aforementioned accounting
policies and valuation principles are explained in Notes II to XXVIII below.
13
II.
Explanations on Usage Strategy of Financial Assets and Foreign Currency Transactions
The Participation Bank receives profit share accounts on the basis of taking share from both profit and loss. These profit
loss based accounts are generally evaluated as Corporate Financing Support, Individual Financing Support, Financial
Leasing and Profit Loss Joint Project. Yields of these funds are fixed.
Active credit risk management procedures are applied due to fixed yields of funds. The rating and scoring systems applied by the Participation Bank, includes detailed company analysis realized in annually or semi-annually and enables
rating of all companies and loans without any restrictions regarding credibility. Loans and companies, which have
been renewed, restructured or rescheduled, are rated within the scope of this system and if acceptable, loan limits are
revised.
In order to maintain the ratio of liquid assets to total assets (except statutory reserves) around 15%-17% is adopted as
liquidity principle by the Participation Bank. Equity profitability is maximized by evaluating this liquidity opportunity
in short maturity transactions in international markets.
Foreign exchange gains and losses arising from foreign currency transactions are recorded at transaction dates. At the
end of the periods, foreign currency assets and liabilities evaluated with the Central Bank of Turkey’s spot purchase
rates and the differences are recorded as foreign exchange gain or loss in the income statement.
As of March 31, 2016 USD and EURO rates that converted TL on foreign currency transactions and reflected on financials are 2.8334 and 3.2081 respectively.
Net foreign currency position is followed in legal limits and ensured that the ratio is within +-20% level. Besides, different policies and strategies are settled according to macroeconomic situations about foreign currency position. However, the Participation Bank avoids taking positions that expose high level of currency risk.
III. Explanations on Consolidated Subsidiaries
Türkiye Finans Katılım Bankası AŞ. and its subsidiaries TF Varlık Kiralama AŞ. and TFKB Varlık Kiralama AŞ are
consolidated by full consolidation method in the accompanying consolidated interim financial statements. The consolidated interim financial statements have been prepared in accordance with the procedures listed in the “Communiqué
Related to Regulation on the Preparation of the Consolidated Financial Statements of Banks” published in the Official
Gazette numbered 26340 dated November 8, 2006. The Parent Participation Bank and the consolidated subsidiary are
referred to as together “the Group”.
Basis of consolidation of the subsidiary:
A subsidiary is an entity that is controlled directly or indirectly by the Parent Participation Bank.
Subsidiaries are consolidated using the full consolidation method. Financial statements of related subsidiaries are consolidated from the date when the control is transferred to the Parent Bank.
Control is defined as the power over the investee, exposure or rights to variable returns from its involvement with the
investee and the ability to use its power over the investee to affect the amount of the Parent Participation Bank’s returns.
In full consolidation method, 100% of the assets, liabilities, income and expenses and off-balance sheet items of subsidiary are combined with the Parent Participation Bank’s assets, liabilities and income, expense and off-balance sheet
items. The carrying amount of the Group’s investment in subsidiary and the Group’s portion of the cost value of the
capital of each subsidiary are eliminated. All significant transactions and balances between the Parent Participation
Bank and its consolidated subsidiary are eliminated reciprocally.
When there are differences between the accounting policies of the subsidiary with the Parent Participation Bank, the
financial statements are adjusted in accordance with the principle of materiality.
TF Varlık Kiralama AŞ, which was established on 11 February 2013, has been fully consolidated in the consolidated
financial statements of the Participation Bank from 30 June 2013. TFKB Varlık Kiralama AŞ, which was established
on 8 July 2014, has been fully consolidated in the consolidated financial statements of the Participation Bank from 31
December 2014.
14
IV.
Explanations on Forward and Option Contracts and Derivative Instruments
The Participation Bank’s derivative financial instruments consist of forward foreign currency buy/sell agreements. The
Participation Bank has no derivative products that are detached from the host contract.
Derivatives are initially recorded in off-balance sheet accounts at their contract values.
Subsequently, the derivative transactions are valued at their fair values and the changes in their fair values are record
ed on balance sheet under “derivative financial assets” or “derivative financial liabilities”, respectively. Subsequent
fair value changes for trading derivatives are recorded under income statement.
The Participation Bank hedges its cash flow risk arising from foreign currency liabilities by using cross currency
swap. The effective portion of the fair value changes of the hedging instruments are recorded in “Hedging funds” under shareholders’ equity. These funds are transferred to profit or loss from equity when the cash flows of the hedged
items impact the income statement.
In case the cash flow hedge accounting is discontinued due to the expiry, realization for sale of the hedging instru
ment, discontinuing or due to the results of the effectiveness test the amounts accounted under shareholders’ equity are
transferred to the profit and loss accounts as these cash flows of the hedged item are realized.
Changes in the fair value of derivative instruments subject to fair value hedges are recognized under profit or loss accounts together with the variation in the fair value of the hedged items. The changes of fair value of derivative transactions for fair value hedge are classified in “Derivative Financial Transactions Gains/Losses” account. In the balance
sheet, changes in the fair value of hedged assets and liabilities, during the period in which the hedge is effective, are
shown with the related assets and liabilities.
V.
Explanations on Profit Share Income and Expenses
Profit share income and expenses are recognized in the income statement on an accrual basis.
Realized and unrealized profit share accruals of the non-performing loans are reversed and profit share income in
connection with these loans is recorded as profit share income only when they are collected.
VI.
Explanations and Disclosures on Fees and Commission Income and Expenses
Banking service revenues are recognized as income only when they are collected while only the current portion of the
prepaid commission income obtained from corporate loans is recorded as income on an accrual basis.
Fees and commissions for funds borrowed paid to other financial institutions, as part of the transaction costs, are
recorded as prepaid expenses and calculated based on internal rate of return method.
VII. Explanations and Disclosures on Financial Assets
Financial instruments comprise of financial assets, financial liabilities and derivative instruments. Basically, financial
assets form majority of the commercial activities and operations of the Participation Bank. Risks due to these instruments are substantial portion of the total risk taken by the Participation Bank. Financial instruments expose, change
or reduce the liquidity, credit and market risks of the Participation Bank’s financial statements. Buying/selling of these financial instruments is carried out in the name of customers and on behalf and account of the Participation Bank.
Basically, financial instruments generate commercial operations of the Participation Bank. These instruments reveal,
affect and decrease liquidity and credit risk on financial statements.
Buying/selling of financial instruments is recognized on settlement date basis. It is the date which an asset is delivered to the Participation Bank or by the Participation Bank. Settlement date accounting requires (a) recognizing of
the asset in purchase date, and (b) to exclude the asset from balance sheet as of delivery date and recognizing profit
or loss due to disposal of the assets as of the same date. Changes in fair value of the assets between trading date and
settlement date are recognized for the financial assets at fair value through profit and loss and financial assets available for sale.
Ordinary purchase and sale generally supposed to purchase or sale of an asset based on a contract that requires the
delivery of the asset in legal procedures and market precedents. Changes in fair value of the asset acquired between
trading date and settlement date are recognized as the same in assets purchased. Changes in fair value of the asset are
not recognized if it is recorded with its purchase or amortized cost. Gain or loss due to a financial asset at fair value is
recorded in profit or loss, gain or loss due to an asset available for sale is recorded in equity..
15
Marketable securities at fair value through profit or loss are classified in two categories; i) marketable securities classified as trading securities: acquired or incurred principally for the purpose of selling or repurchasing it in the near term
in order to benefit from short-term profit opportunities; ii) marketable securities classified as marketable securities at
fair value through profit or loss at initial recognition. The Participation Bank uses the above-mentioned classification
when permitted, or for the purposes of providing a more appropriate presentation.
In this group, trading securities are initially recognized at cost and measured at fair value on the financial statements.
Fair value of debt securities traded in an active market is determined based on the quoted prices or current market prices.
The difference between initial cost and fair value of financial assets at fair value through profit and loss is reflected to
profit share income or diminution in value of marketable securities accounts. Profit share income from financial assets
at fair value through profit and loss is reflected in profit share income.
Investments held to maturity include securities with fixed or determinable payments and fixed maturity when there is
an intention of holding till maturity and the relevant conditions for fulfillment of such intention, including the funding
ability. This portfolio excludes loans and receivables. Subsequent to initial recognition, held to maturity investments are
measured at amortized cost by using the internal rate of return method less impairment losses, if any.
The Participation Bank has no financial assets acquired and classified as held to maturity investments that cannot be
subject to such classification for two years because of the non-performance of tainting rules.
The profit share income received from held to maturity investments is recorded as profit share income in the income
statement.
Marketable securities classified as available for sale are initially recognized at fair valued acquisition cost including
the transaction costs. After initial recognition, available for sale securities are measured at fair value and unrealized
gains/losses originating from the difference between the amortized cost and the fair value are recorded in “Securities
Value Increase Fund” under equity. At the disposal of available for sale financial assets, value increase/decrease recorded in “Securities Value Increase Fund” under equity is transferred to the income statement.
Loans
Loans and receivables are non-derivative financial assets that are not classified as financial assets at fair value through
profit or loss or financial assets available-for-sale, are unlisted in an active market and whose payments are fixed or can
be determined.
Loans and receivables are carried initially by adding acquisition cost which reflect fair value to transaction costs and
subsequently recognized at the discounted value calculated using the “Effective interest method”. The expenses incurred for the assets received as collateral are not considered as transaction costs and are recognized in the expense accounts.
Individual and corporate loans followed in cash loans are recognized at their original amounts according to Uniform
Chart of Accounts (UCA) and accounts determined in its prospects based on loans’ contents.
Foreign currency indexed retail and commercial loans are converted to Turkish Lira at the rate on the lending date; they
are followed under Turkish Lira (“TL”) accounts. Repayment amounts are calculated at the exchange rate on the repayment date and the foreign exchange differences are reflected in the profit/loss accounts.
VIII.
Explanations on Impairment on Financial Instruments
At each balance sheet date, the Group evaluates the carrying amounts of its financial asset or a group of financial assets
to determine whether there is objective evidence that those assets have suffered an impairment loss. If any such indication exists, the Group determines the related impairment.
A financial asset or a group of financial assets are impaired and have impairment loss if, and only if, there is an objective indicator of a single or multiple event (“event of loss”) occurring after the initial recognition of the related asset and
that the expected future cash flows of financial asset or group of financial assets are adversely affected by that event (or
events). The losses expected to incur due to future events are not accounted regardless of high probability.
Value drops in the financial assets with amortized costs is calculated as the difference in the expected cash flows
chargeable efficiency ratio and the upgraded value. For the financial assets ready for allocation with impairment costs
deducted from the cap table, the difference from acquisition costs and real time values is the remainder from the said assets previous profit and loss accounts and impairment losses. This amount is shown in the expense accounts as required
by THP.
16
Loan portfolio is analyzed by management of the Group, periodically. Loans considered as non-performing are classified in accordance with the “Regulation on Procedures and Principles Determination of Qualifications of Loans and
Other Receivables by Banks and Provision”, published on the Official Gazette nr.26333 dated 1 November 2006.
The provisions released in the same year are accounted by crediting the Provision Expenses Account and the released
parts of the previous years’ provisions are recorded to the Collections from Prior Years Expense account.
In addition to specific loan loss provisions, within the framework of the regulation and principles referred to above; the
Participation Bank records general loan loss provisions for loans and other receivables.
Participation costs of the special and general provision expenses that are delimited by the Participation Banks are catered in Participation accounts.
IX.
Explanations on Offsetting of Financial Instruments
Financial instruments are offset when the Group has a legally enforceable right to net off the recognized amounts,and
there is an intention to settle on net basis or realize the asset and settle the liability simultaneously.The sukuk investments issued by the Bank which are repurchased has been offset in available for sale and subordinated loan accounts.
X.
Explanations on Sales and Repurchase Agreements and Lending of Securities
Securities subject to repurchase agreement are classified as “at fair value through profit or loss”, “available for sale” and
“held to-maturity” according to the investment purposes of the Group and measured according to portfolio to which
they belong.Funds obtained from the related agreements are accounted under “Borrowings from Money Markets” in liabilities and the difference between the sale and the repurchase price is accrued over the life of the agreements using the
internal rate of return method.Profit share expense on such transactions is recorded under “Profit Share Expense on
Money Market Borrowings” in the income statement.
The Participation Bank does not have any repurchase agreements or lending of securities.
XI.
Explanations on Assets Held For Sale and Discontinued Operations and Debts due to These Assets
The principles on accounting, assessment and disposal of assets held for sale of the Group are determined based on
the Communiqué of “Principles and Procedures on Bank’s Disposal of Precious Metals and Assets Held for Sale”
published on 1 November 2006 in the Official Gazette numbered 26333.
If assets acquired due to receivables of the Group are under a plan, they are followed in assets held for sale account.
Assets which meet the criteria to be classified as held for sale are measured by the book value or the fair value from
which the cost of sales is deducted, whichever is lower and no more amortization is made for the said assets; and these assets are shown separately on the balance sheet. In order to classify an asset as an asset held for sale, the related
asset (or the group of assets to be disposed of ) should be able to be sold immediately and the probability of sale for
such assets (or group of assets to be disposed of), should be high under current conditions. In order for the sale to be
highly probable, a plan should have been made by the suitable management for the sale of the asset (or the group of
assets to be disposed of) and an active program should have been started to determine the buyers and to carry out the
plan. Furthermore, the asset (or the group of assets to be disposed of) should be actively marketed at a price consistent with its fair value. Various events and conditions may extend the period for the completion of the sales process to more than a year. If there is enough evidence that the related delay has occurred beyond the Group’s control
and that the Group’s plans for selling the related asset (or the group of assets to be disposed of) is still in progress, the
related assets are continued to be classified as assets held for sale.
A discontinued operation is a part of a bank’s business classified as sold or held-for-sale. The results of the discontinued operations are disclosed separately in the income statement. There is not a discontinued operation of the
Group in the current period.
XII. Explanations and Disclosures on Goodwill and Other Intangible Assets
As of the balance sheet date, The Group does not have any goodwill in its accompanying consolidated interim financial statements.
Intangible assets purchased before 1 January 2005, are presented with their inflation adjusted historical acquisition
cost as of December 31, 2004 and intangible assets purchased in the subsequent periods, are presented with their acquisition cost less the accumulated amortization, and impairment provisions. Intangible assets are amortized by the
straight-line method, considering their useful life. The amortization method and period are periodically reviewed at
the end of each year. Intangible assets are comprised of computer software.
17
XIII. Explanations and Disclosures on Tangible Assets
Tangible assets are accounted for at acquisition cost plus any other direct costs incurred to bring the asset for ready to
use. Tangible assets are remeasured at their acquisition cost less accumulated depreciation and impairment loss, if
any. The Parent Participation Bank adopted a revaluation method in 2006 for its real estates in tangible assets due to
(TAS 16) Standard for Tangible Assets. Expert values determined in December 2014 by an independent expert company are reflected to the consolidated financial statements. Such revaluation increase is realized net TL 115,942 after
deferred tax as of balance sheet date (December 31, 2015: TL 115,942).
The depreciation of an asset held for a period less than a full financial year is calculated as a proportion of the full
year depreciation charge from the date of acquisition to the financial year end.Gains/losses arising from the disposal
of tangible assets or the inactivation of a tangible asset are recognized in the income statement by taking into account
the difference between the net book value and the net proceeds.
Regular maintenance and repair costs incurred for tangible assets are recorded as expense.
There are no restrictions such as pledges, mortgages or any other restriction on tangible assets.
The estimated useful lives of the tangible assets used by the Group are as follows:
Tangible Assets
Safety Boxes
Office equipment
Leasehold Improvements
Other Movables
Furniture and Fixtures
Vehicles
Real Estates
Estimated Useful Lives
5-50 years
3-10 years
2-10 years
3-15 years
3-10 years
5 years
50 years
XIV. Explanations and Disclosures on Leasing Transactions
The Group as a Lessor;
The Group acts as a Lessor in leasing transactions. Assets subject to leasing are accounted in the Group’s financials
as receivables that equal to net leasing investment amount. Total of rental payments including profit shares and principals are recorded under “finance lease receivables” as gross. The difference, i.e. the profit share, between the total
of rental payments and the cost of the related tangible asset is recorded under “unearned income”. When the rent
payment incurs, the rent amount is deducted from “finance lease receivables”; and the profit share is recorded as finance lease income in the income statement.
The Group as a Lessee;
Assets held under finance leases are recognized as assets of the Participation Bank at their fair value at the inception
of the lease or, if lower, at the present value of the minimum lease payments. While the corresponding liability to the
lessor is included in the balance sheet as a finance lease obligation, profit share amounts are accounted as deferred
profit share amounts. Leased assets are followed in tangible assets account and subjected to the same accounting policy.
XV.
Explanations on Provisions and Contingent Liabilities
Provisions and contingent liabilities are accounted in accordance with the “Turkish Accounting Standard for Provisions, Contingent Liabilities and Contingent Assets” (“TAS 37”).
Provisions are recognized when the Participation 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. A provision for contingent liabilities
arising from past events should be recognized in the same period of occurrence in accordance with the periodicity
principle.
18
A liability is recognized as a contingent liability where a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of more than one events not wholly within the control of the Bank;or a present obligation that arises from past events but it is not probable that an outflow of resources
embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability and disclosed in the footnotes. Contingent liabilities are assessed continually to determine
whether or not there is probable outflow of that economic benefits from the entity.
The Participation Bank set TL 12,419 provision for ongoing suits filed against to the Participation Bank for which cash
outflow is probable and measurable (31 December 2015: TL 14,038).
XVI. Explanations On Contingent Assets:
Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow
of economic benefits to the entity. Contingent assets are not recognized in financial statements since this may result in
the recognition of income that may never be realized. Contingent assets are disclosed where an inflow of economic benefits is probable. Contingent assets are assessed continually to ensure that developments are appropriately reflected in
the financial statements. If it has become virtually certain that an inflow of economic benefits will arise, the asset and the
related income are recognized in the financial statements in which the change occurs.
XVII. Explanations on Liabilities Regarding Employee Benefits
a)Defined benefit Plans:
Under the existing Labor Law, the Company is required to pay termination benefits to each employee who earned the
right to receive termination indemnities with the end of their employment contract. In addition, under the existing Social
Security Law No.506, clause No. 60, amended by the Labor Laws dated 06.03.1981, No. 2422 and 25.08.1999, No. 4447,
the Company is also required to pay termination benefits to each employee who has earned the right to retire by receiving
termination indemnities.
Employment termination benefit is not a funded liability and there is no requirement to fund it.
Employment termination benefit is calculated based on the estimation of the present value of the employee’s probable future liability arising from the retirement. IAS 19 (“Employee Benefits”) requires actuarial valuation methods to be developed to estimate the Group’s obligation under defined employee plans. IAS 19 (“Employee Benefits”) has been revised
effective from the annual period beginning after 1 January 2013. In accordance with the revised standard, actuarial gain /
loss related to employee benefits shall be recognized in other comprehensive income.
Accordingly actuarial assumptions were used in the calculation of the total liability as these actuarial assumptions apply
to each individual company’s defined benefit plan and legal framework in which those companies operate. The principal
assumption is that the maximum liability for each year of service will increase parallel with inflation. Thus, the discount
rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. Consequently, in
the accompanying financial statements as at 31 March 2016, the provision has been calculated by estimating the present
value of the future probable obligation arising from the retirement of the employees. The average discount rate is 6,50%
and share rate is 10.80% at the respective balance sheet date (31 December 2015: 6.50% and 10.80%).
b)Defined contribution plans:
The Group pays defined contribution plans to publicly administered Social Security Funds for its employees.The Participation Bank has no further payment obligations other than this contribution share.The contributions are recognized as
personel expenses when they accrue.
c)Short term benefits to employees
In accordance with TAS 19,the Group measures the expected costs of the cumulative annual leaves as additional amounts
anticipate to pay accumulated and unused rights as of reporting period.
XVIII. Explanations on Taxation
Tax expense is the total amount of current tax expense and deferred tax expense.
Taxable profit is different from the profit on the income statement, due to the fact that it excludes the income and expense items, which can be taxed or deducted in the following periods and the items, which cannot be taxed or deducted,
permanently. Liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the
balance sheet date.
19
Deferred tax, related to items recognized directly in equity is also credited or charged directly to equity
Deferred tax liability or asset is determined by calculating tax effects of temporary differences between the base
amounts of the financial statement and legally enacted tax base amounts of liabilities and assets by using balance sheet
method and considering legal tax rates. Deferred tax liabilities are calculated for all the temporary taxable differences,
while the deferred tax assets composed of temporary deductible differences, are calculated in case it is highly probable
to use these differences in the future to gain taxable profit. Deferred tax liability is not calculated for temporary timing
differences, which are arising from the initial entering of assets or liabilities, except for goodwill and mergers, and
which do not affect either the commercial or financial profit or loss.
The book value of deferred tax liability is reviewed at each balance sheet date. The book value of the deferred tax is reduced as probability of gaining enough taxable profit decreases.
Deferred tax is calculated at enacted tax rates valid in the period when the assets are formed or liabilities are fulfilled,
and the tax is recorded as income or expense in the income statement. Nonetheless, if the deferred tax is related to assets
directly associated with the equity in the same or different period, it is directly recognized in the group of equity accounts.
A portion of provision directly associated with the equity is offset with related accounts in equity. Therefore, TL 6,342
deferred tax provision (31 December 2015: TL 11,906) directly associated with the equity is offset with “Revaluation
Surplus on Tangible Assets”, “Securities Value Increase Fund” and “Other Capital Reserves” accounts in equity as of
31 March 2016.
Current tax liability is offset with prepaid tax amounts due to its association. Deferred tax asset and liability is also offset.
Also, by the Banking Regulation and Supervision Agency's notice, if there is a income balance after the deferred tax assets and clarified debt, deferred debt assets are not taken into account in the profit allocation and increased capital investments.
XIX.
Additional Explanations on Borrowings
Borrowings are recognized in accordance with TAS 39 “Financial Instruments: Recognition and Measurement”. Borrowings except derivatives financial liabilities held for trading are recorded at their purchase costs including transaction
costs and discounted by using the internal rate of return. Derivatives financial liabilities held for trading are recorded at
their fair value amounts as explained in the accounting policy numbered IV.
Funds obtained via the debt certificates issued by the asset leasing company has been presented under funds borrowed.
XX.
Explanations on Share Certificates
There are no share certificates issued by the Group as of balance sheet date.
XXI.
Explanations and Disclosures on Acceptances
Acceptances are realized simultaneously with the payment dates of the customers and they are presented as probable
commitments in the off-balance sheet accounts.
XXII.
Explanations and Disclosures on Government Incentives
There are no government incentives used by the Group as of balance sheet date.
20
XXIII.
Explanations and Disclosures on Segment Reporting
The Group operates in individual banking, specific customer current accounts, profit sharing accounts, credit and
ATM cards, consumer loans, long term housing and car loans and other individual bank services.
The Group operates in automatic transfer services, internet banking services, current accounts, profit share accounts,
cash/non cash loans, financial leasing, foreign trade transactions, insurance transactions and corporate banking services.
There are not any economic, financial and political factors that affect segmenting of activities and investments. Due
to fluctuations in economic situation, investments are affected from instability and available resources are evaluated
as liquid.
Current Period
Operating Income
Net profit of segment (*)
Profit Before Tax
Tax Provision
Profit after tax
Net period profit
Assets of segment
Total Assets
Liabilities of segment
Equity
Total liabilities and equity
Retail
Corporate
Banking
Banking
Treasury Unallocated
Total
138,802
384,399
4,998
528,199
24,332
81,410
5,512
111,254
24,332
81,410
5,512
111,254
24,616
24,616
24,332
81,410
5,512
(24,616)
86,638
24,332
81,410
5,512
(24,616)
86,638
4,047,823 25,193,181 8,573,926
1,271,274 39,086,204
4,047,823 25,193,181 8,573,926
1,271,274 39,086,204
10,472,553 13,698,053 10,572,708
885,907 35,629,221
3,456,983
3,456,983
10,472,553 13,698,053 10,572,708
4,342,890 39,086,204
(*) Personnel and administrative expenses are allocated according to ratio of asset and liabilities of the segments.
Prior Period
Operating Income
Net profit of segment (*)
Profit Before Tax
Tax Provision
Profit after tax
Net period profit
Assets of segment
Total Assets
Liabilities of segment
Equity
Total liabilities and equity
Retail
Corporate
Banking
Banking
Treasury Unallocated
Total
119,167
314,879
(19,031)
415,015
4,961
92,629
(16,435)
81,155
4,961
92,629
(16,435)
81,155
16,854
16,854
4,961
92,629
(16,435)
(16,854)
64,301
4,961
92,629
(16,435)
(16,854)
64,301
4,409,941 24,060,694 8,892,640
1,172,301 38,535,576
4,409,941 24,060,694 8,892,640
1,172,301 38,535,576
10,833,969 12,890,409 10,722,046
741,061 35,187,485
3,348,091
3,348,091
10,833,969 12,890,409 10,722,046
4,089,152 38,535,576
(*) Personnel and administrative expenses are allocated according to ratio of asset and liabilities of the segments.
XXIV.
Explanations on Other Matters
There are no explanations exist other than the accounting policies stated above.
21
SECTION FOUR: INFORMATION ON CONSOLIDATED FINANCIAL STRUCTURE
I.
Explanations On Equity:
Total capital and Capital adequacy ratio have been calculated in accordance with the “Regulation on Equity of Banks”
and “Regulation on Measurement and Assessment of Capital Adequacy of Banks”.
As of 31 March 2016 Bank’s total capital has been calculated as TL 4,126,485, Capital adequacy ratio is 13.32%. As of
December 31,2015, Bank’s total capital amounted to TL 4,092,881, Capital adequacy ratio was 13.50% calculated pursuant to former regulations. This ratio is well above the minimum ratio required by the legislation.
C urre nt Pe riod (*)
31 March 2016
TIER 1 C APITAL
Paid-in Capital to be Entitled for Compensation after All Creditors
2,600,000
Share Premium
-
Legal Reserves
703,760
Gains recognized in equity as per T AS
115,942
Profit
87,059
Net Current Period Profit
86,638
Prior Period Profit
421
Bonus Shares from Associates, Subsidiaries and Joint-Ventures not Accounted in Current Period’s Profit
Minorities Share
-
Tier I C apital Before Deductions
3,506,761
-
Deductions From Tie r I Capital
Common Equity as per the 1st clause of Provisional Article 9 of the Regulation on the Equity of Banks
Portion of the current and prior periods' losses which cannot be covered through reserves and losses
refletcted in equity in accordance with T AS
Improvement costs for operating leasing
Goodwill (net of related tax liability)
17,708
22,232
-
Other intangibles other than mortgage -servicing right (net of related tax liability)
Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net
of related tax liability)
Differences are not recognized at the fair value of assets and liabilities subject to hedge of cash flow risk
Communique Related to Principles of the amount credit risk calculated with the Internal Ratings Based
Approach,total expected loss amount exceeds the total provision
Gains arising from securitization transactions
34,989
40,018
-
Unrealized gains and losses due to changes in own credit risk on fair valued liabilities
-
Defined-benefit pension fund net assets
-
Direct and indirect investments of the Bank in its own Common Equity
-
Shares Obtained against Article 56, Paragraph 4 of the Banking Law (-)
Portion of the total of Net Long Positions of the Investments in Equity Items of Unconsolidated Banks
and Financial Institutions where the Bank does not own 10% or less of the Issued Share Capital Exceeding
the 10% T hreshold of above T ier I Capital (-)
Portion of the total of Net Long Positions of the Investments in Equity Items of Unconsolidated Banks
and Financial Institutions where the Bank owns 10% or more of the Issued Share Capital Exceeding the
10% T hreshold of above T ier I Capital (-)
Portion of Mortgage Servicing Rights Exceeding the 10% T hreshold of T ier I Capital (-)
Portion of Net Deferred T ax Assets arising from T emporary Differences Exceeding the 10% T hreshold of
T ier I Capital (-)
Amount Exceeding the 15% T hreshold of T ier I Capital as per the Article 2, Clause 2 of the Regulation on
Measurement and Assessment of Capital Adequacy Ratios of Banks (-)
T he Portion of Net Long Position of the Investments in Equity Items of Unconsolidated Banks and
Financial Institutions where the Bank Owns 10% or more of the Issued Share Capital not deducted from
T ier I Capital (-)
Mortgage Servicing Rights not deducted (-)
-
Excess Amount arising from Deferred T ax Assets from T emporary Differences (-)
Other items to be Defined by the BRSA (-)
-
-
-
Deductions from T ier I Capital in cases where there are no adequate Additional T ier I or T ier II Capitals (-)
Total De du ctions From Common Equity Tie r 1 C apital
114,947
Total Common Equity Tie r 1 Capital
3,391,814
22
23
(*) Amounts in this coloumn represents the amounts of items that are subject to transition provisions in accordance with the temprorary
Articles of “Regulations regarding to changes on Regulation on Equity of Banks” and taken into consideration at the end of transition process.
24
Prior Pe riod (*)
31 De cembe r 2015
TIER 1 CAPITAL
Paid-in Capital to be Entitled for Compensation after All Creditors
Share Premium
2,600,000
-
Share Cancellation Profits
-
Legal Reserves
442,485
Other Comprehensive Income according to T AS
115,942
Profit
261,696
Net Current Period Profit
261,498
Prior Period Profit
198
Provisions for Possible Losses
-
Bonus Shares from Associates, Subsidiaries and Joint-Ventures not Accounted in Current Period’s Profit
Tier I Capital Be fore Deductions
3,420,123
De ductions From Tie r I C apital
Current and Prior Periods' Losses not Covered by Reserves, and Losses Accounted under Equity according
to T AS (-)
Leasehold Improvements on Operational Leases (-)
Goodwill and Int angible Assets and Related Deferred T ax Liabilities (-)
Net Deferred tax assets / liabilities (-)
30,449
24,567
21,749
33,211
Shares Obtained against Article 56, Paragraph 4 of the Banking Law (-)
-
Investments in own common equity (-)
T otal of Net Long Positions of the Investments in Equity Items of Unconsolidated Banks and Financial
Institutions where the Bank does not own 10% or less of the Issued Share Capital Exceeding the 10%
T hreshold of above T ier I Capital (-)
Institutions where the Bank owns 10% or less of the Issued Share Capital Exceeding the 10% T hreshold of
above T ier I Capital (-)
Mortgage Servicing Rights Exceeding the 10% T hreshold of T ier I Capital (-)
Net Deferred T ax Assets arising from T emporary Differences Exceeding the 10% T hreshold of T ier I
Capital (-)
Amount Exceeding the 15% T hreshold of T ier I Capital as per the Article 2, Clause 2 of the Regulation on
Measurement and Assessment of Capital Adequacy Ratios of Banks (-)
T he Portion of Net Long Position of the Investments in Equity Items of Unconsolidated Banks and
Financial Institutions where the Bank Owns 10% or more of the Issued Share Capital not deducted from
T ier I Capital (-)
Mortgage Servicing Rights not deducted (-)
-
Excess Amount arising from Deferred T ax Assets from T emporary Differences (-)
-
-
-
Deductions from T ier I Capital in cases where there are no adequate Additional T ier I or T ier II Capitals (-)
Total regulatory adjustme nts to Tie r 1 capital
109,976
Tier 1 capital
3,310,147
25
Prior Pe riod (*)
ADDITIO NAL CO RE CAPITAL
Preferred Stock not Included in T ier I Capital and the Related Share Premiums
Debt Instruments and the Related Issuance Premiums Defined by the BRSA (Issued or Obtained after
1.1.2014)
Debt Instruments and the Related Issuance Premiums Defined by the BRSA (Issued or Obtained before
1.1.2014)
Additional Core Capital be fore De ductions
31 De cembe r 2015
-
De ductions from Additional Core Capital
Direct and Indirect Investments of the Bank on its own Additional Core Capital (-)
Institutions where the Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% T hreshold of
T he T otal of Net Long Position of the Direct or Indirect Investments in Additional T ier I Capital of
Unconsolidated Banks and Financial Institutions where the Bank Owns more than 10% of the Issued Share
Capital (-)
-
Deductions from Additional Core Capital in cases where there are no adequate T ier II Capital (-)
-
Total De ductions from Additional Core Capital
-
Total Additional Core Capital
-
Deductions from Core Capital
Goodwill and Other Intangible Assets and Related Deferred T axes not deducted from T ier I Capital as per
the T emporary Article 2, Clause 1 of the Regulation on Measurement and Assessment of Capital Adequacy
Ratios of Banks (-)
Net Deferred T ax Asset/Liability not deducted from T ier I Capital as per the T emporary Article 2, Clause
1 of the Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks (-)
Total Core Capital
TIER II CAPITAL
Debt Instruments and the Related Issuance Premiums Defined by the BRSA (Issued or Obtained after
1.1.2014)
Debt Instruments and the Related Issuance Premiums Defined by the BRSA (Issued or Obtained before
1.1.2014)
Pledged Assets of the Shareholders to be used for the Bank's Capital Increases
General Provisions
-
-
32,622
49,817
3,227,708
710,651
159,799
Shares of T hird Parties on T ier II Capital
-
Tier II Capital before De ductions
870,450
De ductions from Tie r II Capital
Direct and Indirect Investments of the Bank on its own T ier II Capital (-)
Institutions where the Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% T hreshold of
T he T otal of Net Long Position of the Direct or Indirect Investments in Additional Core Capital and T ier
II Capital of Unconsolidated Banks and Financial Institutions where the Bank Owns 10% or more of the
Issued Share Capital Exceeding the 10% T hreshold of T ier I Capital (-)
Total De ductions from Tie r II C apital
-
-
-
Total Tie r II Capital
870,450
26
Prior Pe riod (*)
CAPITAL
Loans Granted against the Articles 50 and 51 of the Banking Law (-)
Net Book Values of Movables and Immovables Exceeding the Limit Defined in the Article 57,
Clause 1 of the Banking Law and the Assets Acquired against Overdue Receivables and
Held for Sale but Retained more than Five Years (-)
Loans to Banks, Financial Institutions (domestic/foreign) or Qualified Shareholders in the
form of Subordinated Debts or Debt Instruments Purchased from Such Parties and Qualified
as Subordinated Debts (-)
Deductions as per the Article 20, Clause 2 of the Regulation on Measurement and
Assessment of Capital Adequacy Ratios of Banks (-)
The Portion of Total of Net Long Positions of the Investments in Equity Items of
Unconsolidated Banks and Financial Institutions where the Bank Owns 10% or less of the
Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital not deducted from
Tier I Capital, Additional Core Capital or Tier II Capital as per the Temporary Article 2, Clause
1 of the Regulation (-)
The Portion of Total of Net Long Positions of the Investments in Equity Items of
Unconsolidated Banks and Financial Institutions where the Bank Owns more than 10% of the
Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital not deducted from
Additional Core Capital or Tier II Capital as per the Temporary Article 2, Clause 1 of the
Regulation (-)
The Portion of Net Long Position of the Investments in Equity Items of Unconsolidated
Banks and Financial Institutions where the Bank Owns 10% or more of the Issued Share
Capital, of the Net Deferred Tax Assets arising from Temporary Differences and of the
Mortgage Servicing Rights not deducted from Tier I Capital as per the temporary Article 2,
Clause 2, Paragraph (1) and (2) and Temporary Article 2, Clause 1 of the Regulation (-)
EQUITY
Amounts lower than Excesses as per Deduction Rules
Remaining Total of Net Long Positions of the Investments in Equity Items of Unconsolidated
Banks and Financial Institutions where the Bank Owns 10% or less of the Issued Share
Capital
Remaining Total of Net Long Positions of the Investments in Tier I Capital of Unconsolidated
Banks and Financial Institutions where the Bank Owns more than 10% or less of the Tier I
Capital
Remaining Mortgage Servicing Rights
Net Deferred Tax Assets arising from Temporary Differences
31 De cembe r 2015
-
5,266
11
-
-
4,092,881
-
-
(*)Total capital has been calculated in accordance with the “Regulations regarding to changes on Regulation on Equity of Banks” effective from date 31
March 2016, the information given in the prior period column has been calculated pursuant to former regulation.
27
Information on debt instruments included in the calculation of equity:
:
Issuer
T he Nat ional Commercial Bank
T he National Commercial Bank
-
-
Unique Ident ifier
Governing Law(s) of t he Inst rument
Regulation on Equit y of Banks
Regulation on Equit y of Banks
Spe ci al C onsi de ration i n the Cal cul ati on of Equi ty
As of January 1, 2015 considerat ion to be subject t o a 10%
reduction application st at us
No
No
Eligible at Unconsolidat ed / Consolidat ed
Unconsolidated / Consolidated
Unconsolidated / Consolidated
Instrument T ype
Subordinat ed Loan
Subordinated Loan
Amount recognized in regulat ory capit al (as of most recent
reporting dat e)
283.34
425.01
Par Value of Inst rument (Million USD)
100
150
Account ing Classificat ion
Liabilit ies/Subordinat ed Loan
Liabilit ies/Subordinat ed Loan
Original dat e of Issuance
31/03/2015
30/06/2015
Perpet ual or dat ed
Dated
Dated
Mat urity dat e
10 years
10 years
Issuer call subject to prior supervisory (BRSA) approval
Yes
Yes
Opt ional call dat e, contingent call dat es and redempt ion
amount
Aft er 5th year:T ot al repayment
or minimum 10.000.000 USD
Aft er 5t h year:T ot al repayment
or minimum 10.000.000 USD
Subsequent call dat es
-
-
Fixed or float ing profit share / dividend
Fixed
Fixed
Profit share rat e and any relat ed index
%7.23
%7.78
Exist ence of a dividend st opper
-
-
Fully discretionary, part ially discretionary or mandat ory
-
-
Exist ence of st ep up or other incent ive t o redeem
-
-
Noncumulat ive or cumulat ive
-
-
Profi t Share / Di vide nds
C onve rtible or Non-conve rti bl e
If convertible, conversion t rigger
-
-
If convertible, fully or part ially
-
-
If convert ible, conversion rate
-
-
If convertible, mandatory or opt ional conversion
-
-
If convertible, specify inst rument t ype convert ible int o
-
-
If convertible, specify issuer of inst rument it converts into
-
-
If writ e-down, write-down trigger(s)
-
-
If write-down, full or part ial
-
-
If writ e down, permanent or t emporary
-
-
Write -down fe ature
If t emporary writ e-down, descript ion of writ e-up mechanism
-
-
Posit ion in subordination hierarchy in liquidation (specify
inst rument t ype immediately senior t o inst rument )
Before securit ies and addit ional
core capit al/aft er all borrowings
Before securit ies and addit ional
core capit al/after all borrowings
In compliance with art icle number 7 and 8 of “ Own fund
regulation”
Yes
Yes
Details of incompliances wit h art icle number 7 and 8 of “ Own
fund regulation”
8,2,ğ
8,2,ğ
28
The difference between the equity costs on the cap table and the equity costs on the consolidated balance sheet is the tier
capital which is caused by the subordinated costs. In a subordinated loan account, 1.25% of the general provisions that are
shown in the costs and expenses account are taken into account as the tier capital. Losses from the protection operations
of the cash flow risk set aside, operating lease costs on the tangible assets on the balance sheet, intangible assets and tax
liabilities, deferred tax assets/liabilities are taken into consideration in the equity calculation as the values that need to be
deducted from the capital.
II.
Explanations and Disclosures Related to Currency Risk
Currency risk is included in foreign currency buying/selling portfolio so that how available position affects the general
risk profile is calculated. Sensitivity analysis made by RMD results and stress tests are reported to top management.
The Group centralized currency risk and ensured the managing and bearing of all currency risk by Fund Management.
Other profit centers transfers the currency risk on them to Fund Management and the risk is followed in foreign currency
buying/selling portfolio.
The Group efforts not to take short position based on the foreign currency risk. When any currency risk is occurred due to
customer transactions, currency risk is eliminated by taking reverse position.
Foreign exchange buying rates of the Parent Participation Bank at the date of the consolidated balance sheet and for the
previous five working days are in the following table:
The Parent Participation Bank’s average foreign currency buying rate over a period of thirty days preceding the date of
the financial statement is in the table below:
29
Information on currency risk of the Group: Foreign Currencies (Thousand of TL)
EUR
Current Period
Assets
Cash and Balances with the Central Bank of Turkey
Banks
Financial Assets at Fair Value through Profit/Loss(4)
Money Market Placements
Financial Assets Available for Sale
Loans (1)
Investment in Associates, Subsidiaries and Jointly Controlled
Entities (Joint Ventures)
Investments Held to M aturity
Derivative Financial Assets Held for Risk M anagement
Tangible Assets
Intangible Assets
Other Assets (2)
Total Assets
Liabilities
Funds Collected from Banks Via Current and Profit Sharing
Accounts
Current and Profit Sharing Accounts
Money Market Deposits
Funds Provided from Other Financial Institutions
Marketable Securities Issued
Miscellaneous Payables
USD
Other FC(*)
Total
134,768
135,634
164
4,692,249
4,328,911
260,541
1,273,990
6,673,171
773,243
33,064
-
5,236,922
429,239
1,274,154
11,365,420
-
-
-
827
4,963,642
37,783
12,574,396
85
806,392
38,695
18,344,430
390,834
2,702,289
323,294
39,156
70,930
6,916,367
3,474,429
3,723,131
276,599
46,529
445,616
1,065,672
12,670
508,293
10,064,272
4,863,395
3,723,131
328,425
52,950
3,508,523
80,775
14,542,231
2,867
1,573,354
136,592
19,624,108
Net Balance Sheet Position
Net Off Balance Sheet Position
Financial Derivative Assets
Financial Derivative Liabilities
Non-Cash Loans(5)
1,455,119
(1,452,702)
996,617
2,449,319
1,729,020
(1,967,835)
1,980,407
4,869,490
2,889,083
3,306,361
(766,962)
764,536
1,362,006
597,470
310,992
(1,279,678)
1,292,241
7,228,113
5,935,872
5,346,373
Prior Period
Total Assets
Total Liabilities
Net Balance Sheet Position
Net Off Balance Sheet Position
Financial Derivative Liabilities
Non-Cash Loans(5)
4,996,824
3,563,546
1,433,278
(1,430,884)
695,666
2,126,550
1,750,341
11,827,804
13,714,962
(1,887,158)
1,854,590
4,576,633
2,722,043
3,447,709
839,279
1,512,874
(673,595)
690,749
1,302,635
611,886
261,868
17,663,907
18,791,382
(1,127,475)
1,114,455
6,574,934
5,460,479
5,459,918
Derivative Financial Liabilities Held for Risk Management (6)
Other Liabilites (3)
Total Liabilities
(*)Precious metals classified in Other FC column.
(1) Loans given includes foreign currency indexed loans given as foreign currency indexed but followed in TL accounts amounting to TL 7,799,171 includes foreign currency indexed leasing and non performing loan receivables amounting to TL 1,025,183 , TL 55,738 respectively.
(2) FC that shown in the table amounting to TL 226 includes prepaid expenses.
(3) Other liabilities include general loan loss provision set for foreign currency denominated and foreign currency indexed loans amounting to TL
29,903. Besides, accrual of derivative financial liabilities held for trading amounting to TL 91,911 and rediscount on spot transaction amounting to TL
218 are deducted from other liabilities. Besides, securities value increase fund amounting to TL (37,510) is added into other liabilities.
(4) Accrual of derivative financial assets held for trading amounting to TL 15,393 is deducted from financial assets at fair value through profit or loss.
30
(5) No effect on net off balance sheet position.
(6) Derivative financial liabilities held for risk management does not include TL 197,403 which shown in foreign exchanges on financial statements.
III.
Explanations and Disclosures Related to Share Risk due from Banking Book
None.
IV.
Explanations and Disclosures Related to Liquidity Risk
Liquidity risk is the possibility of failing of partly or completely cover to Group’s liquid assets and receivables via liquid liabilities. Liquidity risk is one of the main risk which is undertaken by Group to fulfill its primary banking services.
To manage the mentioned risk in a conservative manner, indicators related to liquidity risk are determined in structure
of Participation Bank’s risk appetite. Existing risk appetite structure includes Benchmark Deposits Rate and Total Liquidity Coverage Ratio. Group’s risk appetite is approved by Board of Directors, monitored by Risk Management Division and reported to senior management. In case of overdraft of limits, the mentioned matters are informed to Audit
Committee. In addition, on monthly basis, measurement and assessment is performed related to target and stimulant indicator has been determined by Active Passive Management Committee. Target, alert, and trigger levels related to indicators of liquidity is determined in order to limit liquidity risk are determined and monitored by Active Passive Management Committee.
Group implements strategies aimed at diversification of fund sources, procuring of fund sources with longer maturities,
and conformance on maturity between assets and liability in order to avoid liquidiy risk.
All balance sheet items which have an impact on liquidity, are decomposed on the basis of maturity and analyzed the liquidity situation. “The Liquidity Coverage Ratio” and “Net Stable Funding Ratio” reports are prepared according to Basel III principles. The liquidity coverage ratio report is presented to BRSA according to the regulations, and Net Stable
Funding Ratio report is prepared at present for information purposes.
In the case of liquidity squeeze which is sourced by Group or Market, the actions to be implemented with order of priority and where the precautions to be taken is formed as Liquidity Risk Management-Emergency Action Plan; the roles
and responsibilities are established according to this action plan. The liquidity contingency funding plan is a part of Participation Bank’s Liquidity Risk Management Policy is approved by Board of Directors and in the case of liquidity
problem, BOD identify the precaution and actions to be taken.
Parent Participation Bank apply stress testing within the scope of liquidity risk, as well as the other significant risk
types. In stress testings related to liquidity risk, power of resistance to determinated scenarios is tested with regard to liquidity structure. In other words, the capability of Parent Participation Bank for completely fullings its liabilities in time
under stress circumstances.
To measure the capital requirement to cover imposed or possible risk and sustain its activities with adequate capital,Parent Participation Bank’s Risk Management Group prepare ICAAP report at least once a year by analysing Participation Bank’s current and future capital requirements along with strategical goals and macroeconomic variables and
the report is transmitted to BRSA.
Under the ICAAP report, Parent Participation Bank’s possible losses and the capital adequacy level which will cover
the losses are estimated with the help of stress test and scenario analysis which identify possible changes in market conditions and possible events can affect negatively The Parent Participation Bank. The evaluations about The Parent Participation Bank’s liquidity adequacy and planning with stress test and scenario analysis and with these evaluations, the
liquidity level The Parent Participation Bank needs to fulfill its obligations is identified.
Other than scenario analysis and stress tests realized by ICAAP additional stress tests are performed in monthly and
quarterly periods. Market and counterparty credit risk and the Participation Bank’s total liquidity risk are performed
monthly within the ‘Framework of Internal Systems of Banks and Internal Capital Adequacy Assessment Process.
31
Liquidity Coverage Ratio:
Curre nt Period
Rate of “Perce ntage to be
take n into account” n ot
Impleme nted Total value (*)
T L+FC
FC
Rate of “Perce ntage to be
tak en into account”
Implem ented Total value (*)
T L+FC
FC
HIGH Q UALITY LIQ UID ASSETS
1 High quality liquid assets
CASH O UTFLO WS
2 Retail and Small Business Customers Deposits
5,100,234
4,310,156
431,410
13,618,220
4,880,413
1,260,441
2,027,633
1,132,620
101,382
56,631
11,590,587
3,747,793
1,159,059
374,779
5 Unsecured Funding other than Retail and Small Business Customers
Deposits
6 Operational deposits
7,141,353
3,351,407
3,886,252
1,797,503
7 Non-Operational Deposits
5,718,356
2,863,742
2,463,255
1,309,838
8 Other Unsecured Funding
1,422,997
487,665
1,422,997
487,665
3 Stable deposits
4 Less stable deposits
-
-
9 Secured funding
-
-
10 Other Cash Outflows
-
-
14,513,609
7,185,712
8,965,121
4,967,645
5,767,900
3,763,826
5,767,900
3,763,826
11 Liquidity needs related to derivatives and market valuation changes on
derivatives transactions
12 Debts related to the structured financial products
-
13 Commitment related to debts to financial markets and other off
balance sheet liabilities
14 Commitments that are unconditionally revocable at any t ime by the
Bank and other contractual commitments
15 Other irrevocable or conditionally revocable commitments
8,745,709
1,984,040
-
3,421,886
309,067
16 TO TAL CASH O UTFLO WS
CASH INFLO WS
17 Secured Lending T ransactions
-
18 Unsecured Lending T ransactions
2,226,041
533,192
-
3,197,221
-
1,203,819
-
-
99,202
15,453
14,211,016
7,212,011
2,226,041
533,192
19 Other contractual cash inflows
5,751,706
4,832,014
5,751,706
4,832,014
20 TO TAL CASH INFLO WS
7,977,747
5,365,206
7,977,747
5,365,206
Upper limit applied amounts
21 TO TAL HQ LA
5,100,234
4,310,156
22 TO TAL NET C ASH O UTFLO WS
6,233,268
1,941,996
23 Liquidity Coverage Ratio (%)
81.82
221.94
(*)Simple arithmetic average calculated for the last three months of values calculated by taking the simple arithmetic average was used for calculating the average in last days of the related last three months.
32
Prior Pe riod
Rate of “Percentage to be
taken into account” not
Implem ented Total value (*)
TL+FC
FC
Rate of “Percentage to be
taken into account”
Im ple m ented Total value (*)
TL+FC
FC
HIGH QUALITY LIQUID ASSETS
1 High quality liquid assets
5,283,150
4,437,851
462,463
CASH OUTFLOWS
2 Retail and Small Business Customers Deposits
12,358,397
5,234,434
1,034,316
3 Stable deposits
4,030,467
1,219,607
201,523
60,980
4 Less stable deposits
Unsecured Funding other than Retail and Small Business Customers
5 Deposits
8,327,930
4,014,827
832,793
401,483
8,342,686
3,826,642
4,663,791
2,037,497
6 Operational deposits
-
-
-
-
7 Non-Operational Deposits
6,481,348
3,305,692
2,802,453
1,516,547
8 Other Unsecured Funding
1,861,338
520,950
1,861,338
520,950
9 Secured funding
-
10 Other Cash Outflow s
Liquidity needs related to derivatives and market valuation changes
on derivatives transactions
11
12 Debts related to the structured financial products
Commitment related to debts to financial markets and other off
balance sheet liabilities
13
Commitments that are unconditionally revocable at any time by the
14 Bank and other contractual commitments
15 Other irrevocable or conditionally revocable commitments
-
15,352,280
8,629,942
9,542,936
6,021,096
6,257,324
4,562,373
6,257,324
4,562,373
-
9,094,956
1,741,320
-
4,067,569
-
3,285,612
-
-
-
87,066
16 TOTAL CASH OUTFLOWS
15,328,109
-
1,458,723
8,521,056
CASH INFLOWS
17 Secured Lending Transactions
-
18 Unsecured Lending Transactions
2,438,066
622,488
2,438,066
622,488
19 Other contractual cash inflow s
6,297,803
5,454,254
6,297,803
5,454,254
20 TOTAL CASH INFLOWS
8,735,869
6,076,742
8,735,869
6,076,742
Üst Sınır Uygulanmış Değerler
21 TOTAL HQLA
5,283,150
4,437,851
22 TOTAL NET CASH OUTFLOWS
6,592,240
2,492,888
80.14
178.02
23 Liquidity Coverage Ratio (%)
(*)Simple arithmetic average calculated for the last three months of values calculated by taking the simple arithmetic average was used for calculating the average in last days of the related last three months.
The most important affect on liquidity coverage ratio result, cash assets, assets in Central Bank and high quality liquid assets’ size occured by received debt instruments. Total liquidity coverage ratio did not show any significant change from
December 31, 2015 to March 31,2016.In comparison with end of the year high quality liquid assets increased by 1.68% to
81.82. Another factor cash outflows, consist of funds collected and unsecured other debt instruments and off-balance sheet
transactions. The share of deposits in cash outflows is 36%, unsecured other debt instruments’ share is %23. Both cash
outflows and cash inflows increased evenly at the first quarter of 2016 compared to end of 2015. Because the purchases
and sales of derivative transactions are in balance, it is almost no impact on ratio.
33
Presentation of assets and liabilities according to their remaining maturities
Demand
Up t o 1
Month
2,041,919
3,680,443
-
-
-
-
-
5,722,362
494,723
-
-
-
-
-
-
494,723
-
26,420
3,624
3,991
-
-
-
34,035
4,898
-
6,417
3,111,664
5,953
3,998,453
429,591
9,793,659
1,114,795
10,531,861
379,343
958,267
547,546
1,940,997
28,941,450
441,013
2,982,553
6,824,944
4,008,030
517,523
10,744,764
250,000
39,378
11,936,034
1,337,610
704,723
1,252,269
767,523
1,185,114
39,086,204
3,906
288,287
257,944
-
-
-
-
550,137
5,357,797
13,288,612
2,467,829
682,315
13,245
4
-
21,809,802
861,488
719,400
6,942,591
(3,960,038)
661,748
906,390
33,364
202,557
125,178
15,506,136
(8,681,192)
253,996
240,885
57,586
3,278,240
729,790
1,191,596
200,347
1,027
2,075,285
8,669,479
2,789,137
3,676,908
197,403
6,676,693
5,259,341
708,350
708,354
629,256
1-3 Months 3-12 Months
5 Years and Unallocated
over
(*)
1-5 Years
Total
Curre nt Pe riod
Assets
Cash and Balances with t he
Cent ral Bank of T urkey
Banks and Other Financial
Instit utions
Financial Asset s at Fair
Value through Profit/Loss
Money Market Placements
Financial Asset s Available
for Sale
Loans
Investment s Held to
Maturity
Other Asset s (**)
Total Asse ts
Liabilities
Funds Collected from Banks
via Current and Profit
Sharing Accounts
Current and Profit Sharing
Account s
Funds Provided from Ot her
Financial Instit utions
Money Market Deposits
Marketable Securities Issued
Miscellaneous Payables
Other Liabilities (***)
Total Li abilites
Liquidit y Gap
Prior Peri od
3,898,905
3,898,905
(2,646,636)
5,604,827
906,390
4,151,504
1,064,045
4,999,499
39,086,204
-
T otal Asset s
6,113,524
3,019,857 4,514,362 10,494,453 11,922,633 1,321,170
1,149,577 38,535,576
T otal Liabilities
7,081,992
14,358,158 3,878,881
1,784,399
6,916,872
726,903
3,788,371 38,535,576
Liquidity Gap
(968,468) (11,338,301)
635,481
8,710,054
5,005,761
594,267 (2,638,794)
(*) Certain assets in the balance sheet that are necessary for the banking operations but cannot be readily convertible into cash in the near future such as
tangible assets, investments in associates and subsidiaries, stationary supplies, prepaid expenses and non-performing loans are included in this column.
(**) Credits issued include net finance lease receivables amounting to TL 1,725,269 and non-performing loans (net) amounting to TL 547,546
(***) Shareholders’ equity and provisions is included in “other liabilities” line under “unallocated” column.
34
V.
Explanations On Leverage Ratio
In current period, total risk exposure was significantly increased due to the increase in foreign exchange rates, balance
sheet and off-balance sheet items on and off -balance sheet items, Items related to Tier I capital did not increase at the
same level, consequently leverage ratio decreased comparing to prior period. On the other hand, it is above than 3%
which is determined as legal constraint by authorities.
Curre nt Pe riod
Prior Pe riod
31 March 2016 (*)
31 De ce mber 2015(*)
38,931,278
2
Balan ce she e t Asse ts
Balance sheet assets (excluding derivative financial assets and credit derivaties,
including collaterals)
(Assets deducted from Core capital)
3
T otal risk amount of balance sheet assets (sum of lines 1 and 2)
38,777,513
38,227,563
4
Cost of replenishment for derivative financial asset s and credit derivaties
1
38,380,125
(153,765)
(152,562)
De rivative financi al assets and cre dit de rivatie s
5 Potential credit risk amount of derivative financial assets and credit derivaties
6
7
T otal risk amount of derivat ive financial assets and credit derivaties (sum of lines 4
and 5)
Financing transactions secure d by marketable se curity or commodity
Risk amount of financing transactions secured by marketable security or
commodity
8
Risk amount arising from intermediary transactions
9
T otal risk amount of financing transactions secured by marketable security or
commodity (sum of lines 7 and 8)
86,906
114,482
127,436
126,072
214,342
240,554
230,297
211,696
-
O ff-balance sh e et transactions
10 Gross notional amount of off-balance sheet transactions
11 (Correction amount due t o multiplication wit h credit conversion rates)
-
230,297
211,696
16,323,728
18,410,921
-
12 T otal risk of off-balance sheet transactions (sum of lines 10 and 11)
-
16,323,728
18,410,921
Capital and total risk
13 Core Capit al
14 T otal risk amount (sum of lines 3, 6, 9 and 12)
3,297,362
3,211,068
55,545,880
57,090,734
5.94
5.64
Leve rage rati o
15 Leverage ratio
(*)The arithmetic average of the last 3 months in the related periods.
VI.
Explanations on Consolidated Hedge Accounting
The Participation Bank applies Cash Flow Hedge (“CFH”) and Fair Value Hedge (“FVH”) accounting models as
of 31 March 2015.
Contractual amounts and the fair values as at 31 March 2016 of these hedging instruments are presented in the table
below:
Hedging instrument
Cross Currency Swap (CFH)
Cross Currency Swap (FVH)
Total
Current Period
Notional (*)
Asset
991,475
214,000
1,205,475
39,378
39,378
Liability
197,403
197,403
Prior Period
Notional (*)
Asset
1,017,439
214,000
1,231,439
48,627
48,627
Liability
284,543
284,543
(*)Only the “sell” legs of the related derivatives are presented with the addition of the “buy” legs of these derivatives amounting to TL
1,071,473 (31 December 2015: TL 1,026,831) the total notional of derivative financial assets amounting to TL 2,276,948 (31 December 2015:
TL 2,258,270) is accounted for in off-balance sheet under “Hedging Derivative Financial Instruments” line item.
35
When the hedging instrument expires, is executed or sold and when the hedge relationship becomes ineffective or is
discontinued as a result of the hedge relationship being revoked;
• The hedging gains and losses that were previously recognized under equity are transferred to profit or loss when
the cash flows of the hedged item are realized,
• Adjustments made to the carrying amount of the hedged item are transferred to profit and loss with straight line
method for portfolio hedges or with effective interest rate method for micro hedges.
In case the hedged item is derecognized, hedge accounting is discontinued and within context of fair value hedge ac
counting, adjustments made to the value of the hedged item are accounted in income statement.
In accordance with TAS 39, the replacement or rollover of a hedging instrument into another hedging instrument is
not an expiration or termination if such replacement or rollover is part of the entity's documented hedging strategy.
Fair value hedge accounting
Using the cross swap techniques, Katilim Bank protects itself from the value risks that might be caused by the fixed
incomes financial assets. As a part of the value risk protection accounting, hedged tools value change and hedged assets value change is presented in the income statement. Hedged assets realtime value changes are zeroed in the income
statement.
The Participation Bank started fair value hedge accounting beginning from 1 January 2015 to hedge the profit share
rate risk of the long term and fixed coupon private sector bond classified under available for sale portfolio which is
amount to TL 214,000 thousands with fixed rate and TL denominated sale leg of the cross currency swap. Also the
EUR/TL currency risk of the EUR denominated funds have been hedged by the EUR buy leg of the cross currency
swap in accordance with the hedge accounting explained.
Fair Value Hedge (“FVH”) accounting effect is presented in table below:
Current Period
T ype of hedging Hedged item (asset and
instrument
liablity)
Nature of hedged risks
Asset
Swap
T ransactions
Leasing Receviables
and FC Funds
Cash flow risk due to the
changes in the foreign
exchange rates and fixed
incomes
Net gain/(loss)
recognized in
hedging funds
Net fair value of the
hedging instrument
Ineffective
portion
Liability
39,378
-
36,434
2,944
Prior Period
T ype of hedging Hedged item (asset and
instrument
liablity)
Asset
Swap
T ransactions
Leasing Receviables
and FC Funds
exchange rates and fixed
incomes
Net gain/(loss)
recognized in
hedging funds
hedging instrument
48,627
Ineffective
portion
Liability
-
46,699
1,928
The Participation Bank documents the relationship between the hedging instruments and hedged items required by the
FVH accounting application in accordance with TAS 39 and its own risk management policies and principles. Every
individual relationship is approved and documented in the same way. In accordance with the Bank’s risk management
policies. Participation Bank’s assumptions, which used for determining fair values of derivative instruments, were
used while calculating fair value of hedged items on the effectiveness tests.
As of March 31, 2016, after performed measuerments effectiveness of the Fair Value Hedge (“FVH”) is determined.
36
Cash flow hedge accounting
The Participation Bank, convert Malaysian Ringgit 1,160,000 securities to USD loan with cross currency swap and
this fund is evaluated in profit share-yielding assets in USD. In this context, the Bank has started to implement cash
flow hedge accounting on August 1, 2014 to protect itself with cross currency swap against cash flow risks due to the
changes in MYR/TL foreign exchange rates on marketable securities issued and changes in USD/TL foreign exchange
rates on profit share-yielding assets.
The hedging instruments are cross currency swaps and the hedged item is the cash outflow due to the changes in exchange rates of marketable securities issued.And the hedged items are issued securities and profit share-yielding assets.
Current Period
Type of hedging
instrument
Swap Transactions
Hedged item (asset
and liablity)(**)
Marketable
securities issued
and profit shareyielding assets
Ineffective
Net gain (loss)
portion
Net gain/(loss) reclassified to
recognized in
income
recognized in
income
statement
hedging funds
during the year statement (Net)
(*)
hedging instrument
Asset
Liability
exchange rates
-
197,403
(32,070)
-
-
(*) Includes the deferred tax effect. As of prior period deferred tax effect amounting to TL 11,891.
(**) The securities issued by the Particioation Bank’s subsidiary TF Varlık Kiralama A.Ş., shown in funds borrowed line in the financial statements.
Prior Period
Type of
hedging
instrument
Swap
Transactions
Hedged item (asset
and liablity)(**)
Marketable
securities issued
and profit shareyielding assets
exchange rates
hedging instrument
Asset
Liability
-
Ineffective
Net gain (loss)
portion
Net gain/(loss) reclassified to
recognized in
income
recognized in
income
statement
hedging funds
during the year statement (Net)
(*)
284,543
(41,583)
-
(*) Includes the deferred tax effect. As of 31 March 2016 deferred tax effect amounting to TL (15,072).
(**) The securities issued by the Particioation Bank’s subsidiary TF Varlık Kiralama A.Ş., shown in funds borrowed line in the financial statements.
At the inception date, the Participation Bank documents the relationship between the hedging instruments and hedged
items required by the CHF accounting application in accordance with TAS 39 and its own risk management policies and
principles. Every individual relationship is approved and documented in the same way. In accordance with the Bank’s
risk management policies.
As of March 31, 2016 fair value hedge transactions have been determined as effective.
37
-
Originally Issued in Turkish, See Note 1 in Third Section
VII. Explanations on Risk Management
Notes and explanations in this section have been prepared in accordance with the Communiqué on Disclosures about Risk
Management to Be Announced to Public by Banks that have been published in Official Gazette no. 29511 on October 23,
2015 and became effective as of March 31, 2016. According to Communiqué have to be presented on a quarterly basis.
Due to usage of standard approach for the calculation of capital adequacy by the Bank, the following tables have not been
presented:
-
RWA flow statements of credit risk exposures under IRB
RWA flow statements of CCR exposures under the Internal Model Method (IMM)
RWA flow statements of market risk exposures under an IMA
Overview of RWA
Minimum capital
requirement
Risk Weighted Amount
Current Period
Credit risk (excluding counterparty credit risk)
1
(CCR)
2 Standardised approach (SA)
Prior Period
Current Period
28,455,421
27,590,327
2,276,434
28,455,421
27,590,327
2,276,434
-
-
-
330,854
235,184
26,468
330,854
235,184
26,468
-
-
-
3 Internal rating-based (IRB) approach
4 Counterparty credit risk
Standardised approach for counterparty
5
credit risk (SA-CCR)
6 Internal model method (IMM)
7
Basic risk w eight approach to internal models
equity position in the banking account
-
-
-
8
Investments made in collective investment
companies – look-through approach
-
-
-
9
companies – mandate-based approach (*)
-
-
-
companies - %1250 w eighted risk approach
-
-
-
11 Settlement risk
-
-
-
12 Securitization positions in banking accounts
-
-
-
13 IRB ratings-based approach (RBA)
-
-
-
14 IRB Supervisory Formula Approach (SFA)
-
-
-
-
-
-
10
SA/simplified supervisory formula approach
(SSFA)
16 Market risk
376,763
402,812
30,141
17 Standardised approach (SA)
376,763
402,812
30,141
-
-
-
15
18 Internal model approaches (IMM)
19 Operational Risk
2,514,649
2,125,794
201,172
20 Basic Indicator Approach
2,514,649
2,125,794
201,172
21 Standart Approach
-
-
-
22 Advanced measurement approach
-
-
-
-
-
-
-
-
-
31,677,687
30,354,117
2,534,215
23
The amount of the discount threshold under
the equity (subject to a 250% risk w eight)
24 Floor adjustment
25 Total (1+4+7+8+9+10+11+12+16+19+23+24)
38
SECTION FIVE: EXPLANATIONS AND DISCLOSURES ON CONSOLIDATED FINANCIAL STATEMENTS
I.
Explanations Related to the Assets of Consolidated Financial Statements
1.
Cash and Central Bank of Turkey:
1.1. Information on Cash and Central Bank of Turkey:
Cash
Central Bank of Turkey
Others
Total
Current Period
TL
FC
137,469
118,699
330,736
4,932,040
17,235
186,183
485,440
5,236,922
Prior Period
TL
FC
171,571
125,583
466,236
4,454,599
6,812
147,702
644,619
4,727,884
(*) As of 31 March 2016, precious metal account amounts to TL 31,789 (31 December 2015: TL 21,330).
1.2. Information on Balances with the Central Bank of Turkey
Unrestricted Demand Deposit
Unrestricted Time Deposit
Restricted Time Deposit
Others (*)
Total
Current Period
TL
FC
330,736
1,251,597
3,680,443
330,736
4,932,040
Prior Period
TL
FC
466,236
752,349
3,702,250
466,236
4,454,599
(*) Reserve deposits that are kept as blockage in CBTR for foreign currency liabilities. The banks operating in Turkey keep reserve
deposits for Turkish currency and foreign currency liabilities in TL and USD or EUR at the rates of 6% and 11%, respectively as per
the Communiqué no.2005/1 “Reserve Deposits” of the Central Bank of Turkey. After the change in communiqué reserve ratios for
TL and FC liabilities have been changed to between 5% and 25% according to the maturity of the liabilities and it has been taken into consideration as of the report date.
2.
Information on Financial Assets at Fair Value through Profit and Loss
The other security line in the amount of TL 1,086 refers to fair value of spot derivative transactions of the Group, accounted based on the settlement date, between the trade date and the balance sheet date ( December 31, 2015: TL 1,442).
2.1. Information on Financial Assets at Fair Value through Profit and Loss, Which are Given as Collateral or
Blocked
None (December 31, 2015: None).
2.2. Information on Financial Assets at Fair Value through Profit and Loss, Which are Subject to Repurchase
Agreements
None (December 31, 2015: None).
2.3. Positive Differences Related to Derivative Financial Assets Held-for-Trading
Held for Trading
Forward Transactions
Swap Transactions
Futures Transactions
Options
Other
Total
Current Period
TL
FC
18,097
9,754
161
4,937
18,258
14,691
39
Prior Period
TL
FC
9,723
170
9,893
4,358
28,556
32,914
3.
Information on Banks
Current Period
TL
Banks
Domestic
Foreign
Branches and Head Offices
Abroad
Total
4.
Prior Period
FC
TL
FC
65,456
28
322,530
106,709
47,558
32
84,895
92,884
65,484
429,239
47,590
177,779
Information on Financial Assets Available for Sale
Debt Securities
Quoted on a Stock Exchange
Not Quoted (*)
Share Certificates
Not Quoted (**)
Impairment Provision(-)
Other
Total
Current Period
1,936,099
1,936,099
4,898
4,898
1,940,997
Prior Period
1,892,510
1,892,510
4,897
4,897
1,897,407
(*)Although the related debt securities are quoted on a Stock Exchange, they have been presented as not quoted since the market
transactions are not deep enough as of balance sheet date.
(**) As of 31 March 2016, not quoted on a stock exchange includes Kredi Garanti fund amounting to TL 4,719.
As of March 31, 2016, the Group’s “financial assets available-for-sale” portfolio includes the rent certificate at a total face value of TL 1,927,835 (December 31, 2015: TL 1,889,843), a total carrying value
amounting to TL 1,936,099 (December 31, 2015: TL 1,892,510) which is issued by Republic of Turkey
Undersecretariat of Treasury.
4.1. Available-for-Sale Financial Assets Blocked/Given As Collateral or Subject to Repurchase Agreements
As of March 31, 2016, available-for-sale financial assets blocked/given as collateral or subject to repurchase agreements are amounting to TL 1,058,690 (December 31, 2015: TL 1,138,097).
4.2. Information on Financial Assets Available for Sale, Which are Subject to Repurchase Agreements
As of 31 March 2016, information on financial assets available for sale, which are subject to repurchase
agreements are amounting to TL 398,389 (31 December 2014: TL 384,776).
5.
Information Related to Loans
5.1. Information on All Types of Loans and Advances Given to Shareholders and Employees of the
Participation Bank
Direct Loans Granted to Shareholders
Corporate Shareholders
Real Person Shareholders
Indirect Loans Granted to Shareholders
Loans Granted to Employees
Total
Current Period
Cash
Non-cash
202
10,303
10,303
202
15,216
15,418
10,303
40
Prior Period
Cash
Non-cash
138
10,573
10,573
138
15,686
15,824
10,573
5.2. Information about the First And Second Group Loans and Other Receivables Including Loans That Have Been Restructured or Rescheduled
Standard Loans and Other Receivables
Loans and
Other
Receivables
Amendments on
(Total)
Conditions of Contract
Amendments
related to the
extension of
the payment
plan
Cash Loans
Export Loans
Import Loans
Business Loans
Consumer Loans
Credit Cards
Loans Given to
Financial Sector
Other
Other Receivables
Total
Loans and Other Receivables Under Close
M onitoring
Loans and
Other
Receivables
Amendments on Conditions
(Total)
of Contract
Amendments
related to the
extension of
the payment
plan
Other
Other
25,117,542
2,242,207
17,613,213
4,879,479
379,513
52,298
49,294
3,004
-
950
950
-
1,551,093
55,145
1,316,605
154,157
12,469
946,612
38,077
874,469
34,066
-
-
3,130
25,117,542
52,298
950
12,717
1,551,093
946,612
-
The loans for which the amendments related to the extension of the payment plan made according to article 4 of first
clause (a) and (b) of “Regulation on Procedures and Principles Determination of Qualifications of Loans and Other Receivables by Banks and Provision” are stated below as of 31 March 2016.
Number of amendments related to the extension of the payment plan
Loans and Other Receivables Under
Standard Loans and Other Receivables
Close Monitoring
52,298
876,617
69,464
531
The time extended via the
amendment on payment plan Standard Loans and Other Receivables
Loans and Other Receivables Under
Close Monitoring
2,302
7,571
21,212
19,854
1,359
59,052
65,555
202,416
460,848
158,741
Extended for 1 or 2 times
Extended for 3,4 or 5 times
Extended for more than 5 times
-
0-6 Months
6-12 Months
1-2 Years
2-5 Years
5 Years and More
According to article 5 of regulation on procedures and principles for determination of qualifications of
loans and other receivables by banks and provision, there is no restructured loan as of 31 March 2016.
According to article 6 of regulation on procedures and principles for determination of qualifications of
loans and other receivables by banks and provision, there are two restructured loans as of 31 March 2016.
The maturity date of these loans were rolled over 829-1,026 days.
41
5.3.
Information on Consumer Loans, Individual Credit Cards, Personnel Loans and Personnel Credit Cards
Consumer Loans - TL
Real Estate Loans
Auto Loans
General Purpose Consumer Loans
Other
Consumer Loans - FC Indexed
Real Estate Loans
Auto Loans
Other
Consumer Loans - FC
Real Estate Loans
Auto Loans
Other
Individual Credit Cards - TL
With Instalment
Without Instalment
Individual Credit Cards - FC
With Instalment
Without Instalment
Personnel Loans -TL
Real Estate Loans
Auto Loans
Other
Personnel Loans - FC Indexed
Real Estate Loans
Auto Loans
Other
Personnel Loans - FC
Real Estate Loans
Auto Loans
Other
Personnel Credit Cards-TL
With Instalment
Without Instalment
Personnel Credit Cards - FC
With Instalment
Without Instalment
Short Term
Medium and Long Term
45,240
4,901,376
9,775
3,740,205
6,093
270,972
29,372
890,199
80,033
20,918
59,115
304,479
2,523
82,229
2,523
222,250
697
6,290
845
115
2,556
582
2,889
8,227
2
2,629
2
5,598
-
Overdraft Accounts - TL (real persons)
Overdraft Accounts - FC (real persons)
Total
358,643
42
4,990,224
Total
4,946,616
3,749,980
277,065
919,571
80,033
20,918
59,115
307,002
84,752
222,250
6,987
845
2,671
3,471
8,229
2,631
5,598
-
5,348,867
5.4. Installment Based Commercial Loans and Corporate Credit Cards
Commercial Loans with Instalment-TL
Business Loans
Auto Loans
Other
Commercial Loans with Instalment - FC Indexed
Business Loans
Auto Loans
Other
Commercial Loans with Instalments - FC
Business Loans
Auto Loans
Other
Corporate Credit Cards-TL
With Instalment
Without Instalment
Corporate Credit Cards-FC
With Instalment
Without Instalment
Overdraft Accounts - TL (corporate)
Overdraft Accounts - FC (corporate)
Total
Short Term
Medium and Long Term
236,823
93,799
3,684
802
73,811
236,021
16,304
3,908
1,173
29
2,706
76,198
553
14,043
553
62,155
-
313,021
Total
330,622
3,684
74,613
252,325
3,908
1,173
29
2,706
76,751
14,596
62,155
-
98,260
411,281
Current Period
26,450,071
218,564
26,668,635
Prior Period
26,417,846
198,339
26,616,185
Current Period
46,107
150,216
654,288
850,611
Prior Period
48,905
171,604
531,627
752,136
5.5. International and Domestic Loans
Domestic Loans
International Loans
Total
5.6. Loans Granted to Subsidiaries and Participations
None (31 December 2015: None).
5.7. Specific Provisions Provided Against Loans
Loans and Receivables with Limited Collectibility
Loans and Receivables with Doubtful Collectibility
Uncollectible Loans and Receivables
Total
43
5.8. Information on Non-Performing Loans (Net)
5.8.1. Information on Loans and Other Receivables Included in Loans under Follow-Up Account, Which
are Restructured or Rescheduled
III. Group
IV. Group
V. Group
Loans and
Loans and Uncollectible
Receivables Receivables Loans and
with Limited
with
Receivables
Collectibility
Doubtful
Collectibility
378
2,793
1,097
378
2,793
1,097
378
2,793
1,097
981
2,963
170
981
2,963
170
981
2,963
170
-
Current Period:
(Gross Amount Before Specific Provisions)
Restructured Loans and Receivables
Rescheduled Loans and Receivables
Prior Period:
(Gross Amount Before Specific Provisions)
Restructured Loans and Receivables
Rescheduled Loans and Receivables
5.8.2. Information of Movements of Loans
44
5.8.3. Information on Foreign Currency Loans and Other Receivables Included in Loans under Follow-Up Account
Group III
Loans and
Receivables with
Limited
Collectibility
Current Period:
Period Ending Balance
Specific Provisions (-)
Net Balance on Balance Sheet
Prior Period:
Prior Period Ending Balance
Net Balance on Balance Sheet
Group IV
Loans and
Receivables with
Doubtful
Collectibility
Group V
Uncollectible
Loans and
Receivables
243
(20)
223
1,593
(675)
918
6,426
(6,402)
24
1,335
(235)
1,100
675
(284)
391
6,275
(6,140)
135
5.8.4. Information on Gross and Net Non-Performing Loans and Receivables as per Customer Categories:
Group III
Group IV
Loans and
Loans and
Receivables with Receivables with
Limited
Doubtful
Collectibility
Collectibility
200,135
222,896
Current Period (Net)
Loans to Individuals and Corporates (Gross)
Loans to Individuals and Corporates (Net)
Banks (Gross)
Banks (Net)
Others Loans and Receivables (Gross)
Other Loans and Receivables (Net)
Prior Period (Net)
Loans to Individuals and Corporates (Gross)
Loans to Individuals and Corporates (Net)
Banks (Gross)
Banks (Net)
Others Loans and Receivables (Gross)
Others Loans and Receivables (Net)
45
Group V
Uncollectible
Loans and
Receivables
124,515
245,334
(45,900)
199,434
908
(207)
701
149,791
372,577
(149,968)
222,609
535
(248)
287
235,163
774,348
(650,155)
124,193
4,455
(4,133)
322
113,752
198,410
(48,778)
406,364
(171,395)
641,035
(527,522)
149,632
286
(127)
159
234,969
403
(209)
194
113,513
4,344
(4,105)
239
6.
Investments Held-to-Maturity (Net)
6.1. Investments Subject to Repurchase Agreements and Given as Collateral/Blocked:
As of 31 March 2016, the bank does not have any held to maturity securities which is given as collateral. (31 December 2015: 130,000).
Investments held-to-maturity subject to repurchase agreements are amounting to TL 522,168.(31
December 2015: 571,756).
6.2. Information on Securities Held-to-Maturity
Current Period
Debt Securities
Not Quoted
Impairment Provision(-)
Total
767,523
767,523
767,523
Prior Period
888,893
888,893
888,893
6.3. Changes in Securities Held-to-Maturity
Current Period
Opening Balance
Foreign Exchange Gain/Loss
Purchases During the Year
Disposals Through Sales and Redemptions
Impairment Provision (-)
Income Accruals and Rediscounts (*)
Ending Balance
888,893
250,000
(350,000)
21,370
767,523
Prior Period
568,400
311,374
9,119
888,893
(*)As of 31 March 2016, securities held to maturity securities include income accruals and rediscounts amounting to TL 6,150
and the amount TL (21,370) represents the accrual change between two periods.
7.
Information on Associates (Net)
8.
Information on Subsidiaries (Net)
According to a decision of the Parent Participation Bank’s Board of Directors on 22 October 2012, asset rent company was established purposing rent certificate issues with the capital TL 50 as at 11 February 2013. Asset rent company named TF Varlık Kiralama A.Ş. was established with the authorizations of Banking Regulation and Supervision Agency dated 20 December 2012, Capital Markets
Board dated 1 February 2013 and Ministry of Customs and Trade dated 8 February 2013. According
to a decision of the Parent Participation Bank, second asset rent company was established purposing
rent certificate issues with the capital of TL 50 as at 8 July 2014 named TFKB Varlık Kiralama A.Ş.
Information on the Consolidated Subsidiaries
Associate
1 TF Varlık Kiralama A.Ş.
2 TFKB Varlık Kiralama AŞ
1
2
Shareholders’ T otal Fixed
T otal Assets
Equity
Assets
4,194,598
56
317,290
608
Bank’s Share – If Different, Bank’s Risk Group Share
(%)
Voting Rights (%)
100.00
100.00
-
Address (City/ Country)
İstanbul / Türkiye
İstanbul / Türkiye
-
Current
Period
Profit/Loss
Income on
Securities
Portfolio
Interest
Income
Prior Period
Profit/Loss
Company’s
Fair Value
-
-
1
-
-
-
-
(56)
197
-
46
9.
Information on Entities under Common Control
10. Information on Finance Lease Receivables (Net)
10.1. Presentation of Finance Lease Investments According to Their Remaining Maturities
Current Period
Gross
Up t o 1 year
1-4 Years
More T han 4 Years
Total
Prior Period
Net
Gross
Net
822,099
693,305
807,657
675,740
1,129,674
952,693
1,211,278
1,013,436
93,997
79,271
110,958
92,835
2,045,770
1,725,269
2,129,893
1,782,011
Current Period
2,045,770
(320,501)
1,725,269
Prior Period
2,129,893
(347,882)
1,782,011
Financial Information on Net Investments Made in Finance Lease
Gross Finance Lease Receivables
Income Earned from Other Operations apart from Finance Lease (-)
Written off leasing amounts
Total
10.3. General Information on Criteria Used in Determination of Contingent Lease Installments, If Any,
Updates About Available Situations and Contract Amounts Related to Renewal or Purchase Options
and Constraints due to Leasing Contracts, Any Past Due Situations, Renewal of Contracts, If Renewaled, Conditions on It, Any Matter Caused to Constraints and Other Important Issues Related to
Finance Lease Contracts
Finance lease contracts are realized in consistent with the Legislation of Finance Lease nr. 6361. There is
not any constraint due to finance lease contracts or any renewal that affects consolidated financial statements (31 December 2015: None).
11.
Derivative Financial Assets Held for Risk Management
Current P eriod
TL
TL
FC
Fair Value Hedge
39,378
-
48,627
-
Cash Flow Hedge
-
-
-
-
Foreign net invest ment hedge
-
-
-
-
39,378
-
48,627
-
Total
12.
Prior Period
FC
Information on Investment Property
13.
Explanations Related to the Deferred Tax Asset
The Group is calculated deferred tax liability amounting to TL 21,644 (31 December 2015: TL 15,459)
from the difference between book values of assets and liabilities, and the tax based amounts which are going to be added to the financial profit or loss in the following periods. The Group net-off calculated deferred tax asset amounting to TL 88,340 (31 December 2015: TL 98,487) and deferred tax liability, and
booked deferred tax asset amounting to TL 66,696 in the current period (31 December 2015: TL 83,028).
14.
Information on Assets Held for Sale
As of 31 March 2015, information on assets held for sale is amounting to TL 256 (31 December 2015: TL 1,732).
15.
Information on Other Assets
Other assets do not exceed 10% of total assets as of 31 March 2016 and 31 December 2015.
47
II.
Explanations Related to the Liabilities of Consolidated Financial Statements
1.
Information on funds collected
1.1. The Maturity Structure of Funds Collected
Up to 1
Month
Up to 3
Month
Up to 6
Month
Up to 9
Months
C urre nt Period
Demand
I. Re al Pe rson s C urre nt Accounts-TL
II. Re al Pe rsons Profit S haring
Accounts-TL
1,067,768
-
-
-
-
2,526,943
3,983,412
III. O ther C urrent Accounts-TL
1,479,652
-
-
Public Sector
Up to 1
Year
Accumulated
P rofit
Sharing
Accounts
1 Year and
Over
Total
-
-
-
-
84,540
-
137,043
157,672
47
6,889,657
-
-
-
-
-
1,479,652
1,067,768
30,489
-
-
-
-
-
-
-
30,489
Commercial Sector
1,406,611
-
-
-
-
-
-
-
1,406,611
Other Institiutions
41,737
41,737
-
-
-
-
-
-
-
Commercial and Other Institutionals
468
-
-
-
-
-
-
-
468
Banks and Finance Houses
347
-
-
-
-
-
-
-
347
Central Bank of T urkey
-
-
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
-
-
Foreign Banks
Bank
Other
IV. Profit S haring Accounts-TL
307
-
-
-
-
-
-
-
307
40
-
-
-
-
-
-
-
40
-
-
-
-
-
-
-
-
-
-
476,185
1,712,753
24,428
-
95,824
41,107
-
2,350,297
Public Sector
-
-
24
-
-
-
-
-
24
Commercial Sector
-
436,338
1,550,116
6,610
-
93,375
37,480
-
2,123,919
174,448
Other Institiutions
-
39,847
127,876
649
-
2,449
3,627
-
-
-
10,409
-
-
-
-
-
10,409
Banks
V. Re al Pe rsons C urre nt AccountsFC
VI. Re al Pe rsons Profit S haring
Accounts-FC
-
-
24,328
17,169
-
-
-
-
41,497
1,244,149
-
-
-
-
-
-
-
1,244,149
1,694,500
3,159,991
53,547
-
218,918
108,457
11
5,235,424
VII. O ther Cu rrent Accounts-FC
1,362,922
-
-
-
-
-
-
-
1,362,922
Commercial Residents in T urkey
1,140,983
-
-
-
-
-
-
-
1,140,983
Commerical Residents in Abroad
219,743
-
-
-
-
-
-
-
219,743
2,196
-
-
-
-
-
-
-
2,196
Central Bank of T urkey
-
-
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
-
-
Banks
Foreign Banks
Banks
Other
VIII. Profit Sh aring Accounts O the rFC
532
-
-
-
-
-
-
-
532
1,664
-
-
-
-
-
-
-
1,664
-
-
-
-
-
-
-
-
2,355,412
-
528,087
1,628,080
76,215
-
40,198
82,832
-
Public Sector
-
-
-
-
-
-
-
-
-
Commercial Sector
-
464,134
1,097,391
51,248
-
17,978
7,981
-
1,638,732
Other Institiutions
-
20,725
13,944
1,429
-
1,122
109
-
37,329
-
17,541
82,791
23,538
-
21,098
74,742
-
219,710
Banks and Participation Banks
IX.Pre cious Metal Accounts
X. Profit Sharing Accoun ts Special
Fund Pools-TL
-
25,687
433,954
-
-
-
-
-
459,641
207,212
-
383
151,495
-
15,551
17
-
374,658
Residents in T urkey
Residents in Abroad
XI. Profit Sharing Accounts Special
Fund Pools.-FC
Residents in T urkey
Residents in Abroad
Total (I+II+…..+IX+X+XI)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,361,703
5,225,715
10,484,619
390,225
-
507,534
390,085
58
22,359,939
48
49
1.2
Current and Participation Accounts Attributable to Real Entities/Persons under the Guarantee of Saving Deposit Insurance Fund Exceeding the Limit of the Deposit Insurance Fund
Under the Guarantee of
insurance
Re al Persons Current and Profit Sharing Accounts
that are not Subje ct to the C omme rcial Activitie s
Exceeding the Limit of
insurance
Current Period
Prior Period
Current Period
Prior Period
6,854,538
6,648,280
7,819,984
7,861,204
T L Accounts
4,705,262
4,740,823
3,241,072
3,548,619
FC Accounts
Foreign Branches' Deposits Under Foriegn Authorities'
Insurance
Off-Shore Banking Regions' Deposits Under Foreign
Authorities' Insurance
2,149,276
1,907,457
4,578,912
4,312,585
-
-
-
-
-
-
-
-
Guarantee of Deposit Insurance Fund changed insurance amount from TL 50 to TL 100 on the “Regulation
On Deposits and Participation Funds Subject to Insurance and Premiums Collected by Savings Deposit Insurance Fund” dated 15 February 2013.
1.3. Current and Profit Sharing Accounts which are not Under the Guarantee of Deposit Insurance Fund
Foreign Branches' Profit Share Funds and Other Accounts
Profit Sharing Accounts and Other Accounts held by Shareholders
and Their Relatives
Profit Sharing Accounts and Other Accounts of the Chairman and
Board of Directors, Chief Executive Officer, Senior Executive
Officers and Their Relatives
Profit Sharing Accounts and Other Accounts Held as Assets
Subject to the Crime defined in the Article 282 of the Turkish
Criminal Code No. 5237 dated 26/9/2004
Off Shore banking Regions' Profit Sharing Accounts
Current Period
-
Prior Period
-
-
-
65,549
69,268
-
-
1.4. Information on the Current and Profit Sharing Accounts of the Parent Participation Bank with Head
Office Abroad, if the Saving Deposits in the Branches of the Participation Bank Located in Turkey are
Under the Guarantee of Saving Deposit Insurance in that Country Abroad
The center of the Parent Participation Bank is in Turkey and under the guarantee of Saving Deposits Insurance Fund of Turkey.
1.5. Current and Profit Sharing Accounts which are not Under the Guarantee of Deposit Insurance Fund
Total of current and profit sharing accounts which are not under the guarantee of Deposit Insurance Fund is
TL 65,549 (31 December 2015: TL 69,268).
50
2.
Negative Differences on Derivative Financial Liabilities Held for Trading
Derivative Financial Liabilities Held for Trading
Forward Transaction
Swap Transaction
Future
Options
Other
Total
3.
Current Period
TL
FC
10,765
4,744
23,867
87,167
34,632
91,911
Prior Period
TL
FC
5,719
1,445
13,325
12,865
19,044
14,310
Current Period
TL
FC
221,472
388,314
519,960
3,757,663
741,432 4,145,977
Prior Period
TL
FC
120,166
267,346
631,195
3,504,575
751,361 3,771,921
Current Period
TL
FC
229,211
1,869,061
512,221
2,276,916
741,432 4,145,977
Prior Period
TL
FC
236,508
1,355,820
514,853
2,416,101
751,361 3,771,921
Current Period
TL
FC
428,373
3,723,131
428,373 3,723,131
Prior Period
TL
FC
395,662
3,707,326
395,662 3,707,326
Information on Borrowings
3.1. Information on Banks and Other Financial Institutions
Funds Borrowed from the Central Bank of Turkey
Funds Borrowed from Domestic Banks and Institutions
Funds Borrowed from Foreign Banks, Institutions and Funds
Total
3.2. Maturity Analysis of Funds Borrowed
Short-Term
Medium and Long-Term
Total
4.
Information on Securities Issued
Rent Certificate
Total
5.
Other Liabilities Exceeding 10% of the Balance Sheet Total and the Breakdown of Such Liabilities Constituting at Least 20% of the Grand Total
Other liabilities do not exceed 10% of total liabilities as of 31 March 2016 and 31 December 2015..
6.
Information on Finance Lease Payables (net)
6.1 The General Explanations on Criteria Used in Determining Installments of Financial Lease Agreements,
Renewal and Purchasing Options and Restrictions in the Agreements that Create Significant Obligations to
the Participation Bank
6.2. The Explanation on Modifications in Agreements and New Obligations Resulting from such Modifications
51
7.
Information on Derivative Financial Liabilities Held for Risk Management
Fair Value Hedge
Cash Flow Hedge
Foreign net investment hedge
Total
Current Period
TL
FC
197,403
197,403
Prior Period
TL
FC
-
284,543
284,543
Derivative financial liabilities held for risk management are explained in detail in Section 4, footnote VI.
8.
Information on Provisions
8.1 Information on General Provisions
General Provisions
Provision for Group 1. Loans and Receivables
Profit Sharing Accounts' Share
The Bank's Share
Other
Additional provisions for Group 1. loans with extended
payment plan
The Bank's Share
Other
Provision for Group 2. Loans and Receivables
The Bank's Share
Other
Additional provisions for Group 2. loans with extended
payment plan
The Bank's Share
Other
Provision for Non Cash Loans
Other
Current Period
258,911
179,758
68,230
111,528
-
Prior Period
245,432
176,045
67,064
108,981
-
3,294
505
2,789
59,632
21,267
38,365
-
2,519
482
2,037
50,465
18,570
31,895
-
27,925
9,507
18,418
19,521
-
23,791
8,631
15,160
18,922
-
8.2. Information on Foreign Exchange Losses on the Foreign Currency Indexed Loans and Finance Lease
Receivables
Foreign exchange differences on foreign currency indexed loans amounting to TL 112,742 are netted with
loans on the asset side as of balance sheet date (31 December 2015: TL 49,623).
8.3 Information on Employee Termination Benefits
The Group’s provision amount for unused vacation is TL 12,946 (31 December 2015: TL 11,215), provision
amount for performance premium is TL 6,925 (31 December 2015: TL 20,831) and provision amount for severance indemnities is TL 43,364 (31 December 2015: TL 41,044) as of 31 March 2016.
8.4. Information on Other Provisions
8.4.1. Information on Provisions for possible risks
52
8.4.2. Other Provisions Exceeding 10% of Total Provisions and Name, Amount and Breakdown of Such
Provisions
Specific Provision for Cheques
Specific Provision for Non Cash Loans not Indemnified or
not Converted into Cash
Provision for Lawsuits against Participation Bank
Provision for Decrease in Value Spot Derivative
Transactions
Provision for Profits will be Allocated to Partipation
Accounts (*)
Provision for Credit Cards Promotion Commitments
Other
Total
Current Period
9,651
Prior Period
8,665
42,479
12,419
40,135
14,038
684
998
52,402
1,291
850
119,776
55,579
1,471
872
121,758
(*)
According to article 14 of regulation on procedures and principles for determination of qualifications of loans and other receivables
and provision by banks, the amount is reserved to use for general loan loss provision, specific provisions and the Participation Accounts allocated to premium of Guarantee of Deposit Insurance Fund.
9. Information on Tax Liability
9.1. Explanations Related to Current Tax Liability
9.1.1. Information on Tax Provision
The Parent Participation Bank has corporate tax liability amounting to TL 120,779 (31 December 2015: TL
: 107,046) and prepaid tax amounting to TL 106,971 (31 December 2015: TL 72,996) as of 31 March 2016.
The remaining corporate tax liability after the deduction of the prepaid tax amount is reflected to financial
statements.
9.1.2. Information on Taxes Payable
Corporate Tax Payables
Tax on Securities Income
Tax on Real Estate Income
Banking Insurance Transaction Tax
Foreign Exchange Transaction Tax
Value Added Tax Payables
Other
Total
Current Period
13,808
11,151
911
13,563
2,555
7,356
49,344
Prior Period
34,050
10,866
945
14,911
3,459
9,434
73,665
Current Period
3,358
3,772
240
480
54
7,904
Prior Period
2,926
3,190
209
418
44
6,787
9.1.3. Information on Premiums
Social Security Premiums-Employees
Social Security Premiums-Employer
Bank Pension Fund Premiums- Employees
Bank Pension Fund Premiums- Employer
Pension Fund Membership Fees and Provisions- Employees
Pension Fund Membership Fees and Provisions- Employers
Unemployement Insurance- Employees
Unemployement Insurance- Employer
Other
Total
53
9.2. Information on Deferred Tax Liabilities
10. Information on Sub-Ordinated Loans
Domestic Banks
Other Domestic Institutions
Foreign Banks
Other Foreign Institutions
Total
Current Period
TL
FC
717,418
717,418
Prior Period
TL
FC
733,023
733,023
The Participation Bank provided sub-ordinated loans amounting to 100,000,000 USD and 150,000,000 USD,
in terms of a 7.23%,7.78% profit share rates and ten years maturity, on 31 March 2015 and 30 June 2015 respectively. In accordance with article of BRSA dated 26 March 2015, to include loans amounting to
250,000,000 USD into calculation of additional capital since the date when sub-ordinated loan is recorded into
Bank’s accounts in cash.
11. Information on Shareholders’ Equity
11.1. Presentation of Paid-in Capital
Current Period
2,600,000
-
Commo n Sto ck
Preferred Sto ck
Prio r Perio d
2,600,000
-
11.2. Paid-in Capital Amount, Explanation as to Whether the Registered Share Capital System is Applicable
at Participation Bank if so Amount of Registered Share Capital Ceiling
Registered share capital system is not applied in Group.
11.2.1 Information on Share Capital Increases and Their Sources; Other Information on Increased Capital
Shares in Current Period
11.2.2. Information on Capital Reserves Transferred to the Capital During the Period
During the current period there are no capital reserves transferred to the capital (31 December 2015: None).
No balance has been added to capital reserves from revaluation fund in the current period (31 December 2015:
None).
11.2.3. 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 Meeting These Commitments
11.3. Indicators of the Group’s Income, Profitability and Liquidity for the Previous Periods and Possible
Effects of These Future Assumptions on the Participation Bank’s Equity Due to the Uncertainty of These Indicators
None.
11.4. Information on Preferred Shares
54
11.5.Information on Securities Value Increase Fund
11.6.Other Information on Shareholders’ Equity
By a decision taken in the Participation Bank’s General Assembly dated 31 March 2016, the profit
of the year 2015 that is amounting to TL 261,076 was transferred to statutory reserves and extraordinary reserves amounting to TL 11,294 and TL 249,782 respectively.
III. Explanations Related to the Consolidated Off-Balance Sheet Items
1.
Information on Off-Balance Sheet Liabilities
1.1. Types and Amounts of Irrevocable Loan Commitments
Asset purchase-sale commitments
Commitments for Subsidiaries and Affiliates
Commitments for Check Payments
Tax and Fund Liabilities from Export Commitments
Commitments for Credit Card Expenditure Limits
Commitments for Credit Cards and Banking Services
Promotions
Other
Total
Current Period
1,739,807
20,351
1,414,806
2,616
863,467
Prior Period
1,475,808
18,558
1,337,586
2,580
852,675
2,102
39,927
4,083,076
1,970
33,596
3,722,773
1.2. Information on the Nature and the Amount of Possible Losses and Commitments Stemmed fromOff-Balance Sheet Items
1.2.1. Non-Cash Loans Including Guarantees, Acceptances, Financial Guarantee and
Other Letters of Credits
Current Period
11,123,612
541,167
885,882
2,376
12,553,037
Guarantees
Acceptances
Letter of Credits
Other guarantees
Total
Prior Period
11,006,206
575,664
918,820
1,714
12,502,404
1.2.2. Permanent Guarantees, Temporary Guarantees, Suretyships and Similar Transactions
55
1.2.3. Total Non Cash Loans
Current Period
1,917,457
61,738
1,855,719
10,635,580
12,553,037
Non-cash loans given against achieving cash loans
With maturity of 1 year or less than 1 year
With maturity more than 1 year
Other non cash loans
Total
Prior Period
1,979,183
76,605
1,902,578
10,523,221
12,502,404
IV. Explanations Related to the Consolidated Income Statement
1.
Profit Share Income
1.1. Information on Profit Share on Loans
Current Period
TL
FC
637,144
26,894
170,450
4,362
463,657
22,532
Profit Share on Loans (*)
Short Term Loans
Medium and Long Term Loans
Profit Share on Non Performing Loans
Premiums Received From Resource Utilization
Support Fund
Total
Prior Period
TL
FC
554,165
18,376
170,289
5,432
382,700
12,944
3,037
-
1,176
-
637,144
26,894
554,165
18,376
(*)Profit Share on Loans includes commission income on cash loans.
1.2. Information on Profit Share on Participation Banks
Current Period
TL
FC
4,653
2,792
1
4,653
2,793
Domestic Banks
Foreign Banks
Branches and Head Office Abroad
Total
Prior Period
TL
FC
514
68
514
68
1.3. Information on Profit Share on Marketable Securities Portfolio
Current Period
TL
FC
Financial Assets Held for Trading
Financial Assets at Fair Value Through Profit
and Loss
Financial Assets Available for Sale
Investments Held to Maturity
Total
Prior Period
TL
FC
0
0
0
0
0
0
0
0
15,625
10,452
19,107
7,026
19,003
34,628
0
10,452
16,787
35,894
0
7,026
1.4. Information on Profit Share Income Received from Associates and Subsidiaries
None (31 March 2015: None).
56
2.
Profit Share Expenses
2.1. Information on Profit Share on Funds Borrowed
Current Period
TL
FC
20,465
29,632
3,743
1,711
16,722
27,921
32
171
20,497
29,803
Banks
Domestic Banks
Foreign Banks (*)
Branches and Head Office Abroad
Other Institutions
Total
Prior Period
TL
FC
10,761
43,326
632
10,761
42,694
111
233
10,872
43,559
(*) Profit Share on Funds Borrowed includes commission expense on cash loans.
2.2. Information on Profit Share Expense Given to Associates and Subsidiaries
None. (31 March 2015: None)
2.2. Information on Profit Share Expense to Marketable Securities Issued
Current Period
TL
FC
Information on Profit Share Expense to Marketable
Securities Issued
Total
3.
11,716
11,716
7,927
7,927
41,944
41,944
Information on Trading Income/Losses (net)
Current Period
6,589,619
307
371,236
6,218,076
(6,597,140)
(184)
(467,155)
(6,129,801)
Income
Trading Account Income
Derivative Financial Instruments
Foreign Exchange Gains
Losses (-)
Trading Account Losses
Derivative Financial Instruments
Foreign Exchange Losses
4.
44,807
44,807
Prior Period
TL
FC
Information on Other Operating Income
57
Previous Period
1,721,244
320
256,654
1,464,270
(1,704,038)
(233,676)
(1,470,362)
5.
Provision Expenses Related To Loans and Other Receivables of the Group
Specific Provisions for Loans and Other Receivables
III. Group
IV. Group
V. Group
Doubtful Commission,Fee and Other Receivables
General Provision Expenses
Provision Expenses for Possible Losses
Marketable Securities Impairment Losses
Financial Assets at Fair Value Thruogh Profit and Losses
Investment Securities Available for Sale
Impairment Provision Expenses
Investment in Associates
Subsidaries
Jointly Controlled Entities
Investments Held to Maturity
Other(*)
Total
Current Period
177,236
54,887
48,223
69,451
4,675
14,089
13,486
204,811
Previous Period
100,003
52,753
22,280
22,166
2,804
11,679
18,958
130,640
(*) Other provision expenses amounting to TL 13,486 comprised of specific provision expenses for cheques amounting
to TL 3,247, specific provision expenses for non cash loans not indemnified or not converted into cash amounting to
TL 5,356, specific provision expenses allocated to participation accounts amounting to TL 4,527, provision expenses
for law suits amounting to TL 356 (31 March 2015: Other provision expenses amounting to TL 18,958 comprised of
specific provision expenses for cheques amounting to TL 3,994,other provision expenses amounting to TL 3,477, specific provision expenses for non cash loans not indemnified or not converted into cash amounting to TL 8,761, other
expenses amounting to TL 1,435 and provision expense for law suits amounting to TL 1,291).
6.
Information on Other Operating Expenses
Personel Expenses
Reserve for Employee Termination Benefits
Bank Pension Fund Deficit Provisions
Impairment Losses on Tangible Assets
Depreciation Expenses of Tangible Assets
Impairment Losses on Intangible Assets
Amortization Expenses of Goodwill
Depreciation Expenses of Intangible Assets
Impairment Provision for Investments Accounted for 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
Operating Lease Expenses
Repair and Maintenance Expenses
Advertisement Expenses
Other Expenses
Loss on Sales of Assets
Other
Total
58
Current Period
101,722
2,320
8,392
8,930
Previous Period
99,245
2,402
8,811
6,597
23
328
52,216
20,623
1,652
3,705
26,236
42
38,161
212,134
599
226
48,477
18,458
1,231
4,542
24,246
73
36,790
203,220
7.
Information on Provision for Taxes
The Group tax reconciliation is listed below:
8.
Explanation on Net Period Profit / Loss
8.1. The Nature and Amount of Certain Income and Expense Items from Ordinary Operations is Disclosed If the Disclosure for Nature, Amount and Repetition Rate of Such Items is Required for the
Complete Understanding of the Group's Performance for the Period
Profit share income on regular banking operations is TL 764,021 and profit share expenses are TL 361,139 (31
March 2015: profit share income; TL 658,171 profit share expenses: TL 335,752).
8.2.
Changes in Accounting Estimates on Income Statement for the Current and, If Any, for Subsequent Periods
Effect of
None (31 March 2015: None).
9.
If the Other Items in the Income Statement Exceed 10% of the Income Statement Total, Accounts
Amounting to At Least 20% of These Items are shown below
Other Fees and Commissions Received
Commissions of Letters of Credit on Imports
Commission of Collection Note/Check
Commissions on Remmittance
Insurance Commissions
Credit Letter Commissions
Expert Fees
Credit Card Fees and Commissions
Commissions on Member Firm -POS
Cash Import Commissions
Other Commissions and Fees
Total
Current Period
159
779
2,348
5,499
627
6,304
8,761
11,488
668
6,834
43,467
Prior Period
221
867
2,161
5,400
750
5,753
7,597
6,023
677
7,814
37,263
Other Fees and Commissions Given
POS Transaction Commission Expense
7/24 Card Domestic ATM Commission Given
Credit Card Service and Usage Expense
Commissions and Fees Given for Remittance
Other Commissions and Fees
Total
Current Period
20,118
391
1,583
783
12,671
35,546
Prior Period
10,918
386
1,268
455
11,589
24,616
59
V.
Explanations Related to Consolidated Statement of Cash Flows
1.
Information on Cash and Cash Equivalents at Beginning and End of Periods
VI. Explanations on the Risk Group of the Parent Participation Bank
1.
Information on the volume of transactions relating to the Parent Participation Bank’s risk group, incomplete loan and funds collected transactions and period’s profit and loss
1.1. Information on loans and other receivables of the Parent Participation Bank’s risk group
Current Period
(*)Lease receivables from the Parent Participation Bank’s risk group are included in cash balances amounting to TL 2,065.
Prior Period
(*)Lease receivables from the Parent Participation Bank’s risk group are included in cash balances amounting to TL 3,348.
(**)Prior period figures represent the 31 March 2015 balances.
60
1.2 Information on Current and Profit Sharing Accounts Related to Risk Group of the Parent Participation
Bank
(*) Prior period figures represent the 31 March 2015 balances.
1.3. Forward Transactions, Option Contracts and Other Similar Contracts Made With the Parent Participation Bank’s Risk Group
(*)Prior period figures represent the 31 March 2015 balances.
1.4. Funds Borrowed from the Parent Participation Bank’s Risk Group
Associates,Subsidaries Direct and Indirect
and Jointly Controlled Shareholders of the
Entities
Bank
Current
Current
Prior
Period Prior Period Period
Period
Loans Received
Balance at the Beginning of the period
- 1,321,788 1,205,341
Balance at the End of the period
- 1,285,576 1,321,788
Profit Share and Commission Expense
19,413
14,390
Bank's Risk Group
Other items that have
been included in the
Risk Group
Current
Prior
Period
Period
-
(*)Prior period figures represent the 31 March 2015 balances.
VII. Explanations Related to Subsequent Events
1.
Transactions Not Finalized Yet Related to Subsequent Events and Their Impact on Consolidated Financial Statements
None.
2.
Information about effects of significant changes in foreign exchange rates after balance sheet date that
would affect decision making process of users
None.
61
SECTION SIX: INDEPENDENT AUDITOR’S REVIEW REPORT
I.
Explanations on the Independent Auditor’s Review Report
The consolidated financial statements of the Participation Bank for the three-month period ended 31 March
2016 were reviewed by Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik AŞ (a member firm
of Ernst & Young Global Limited) and Limited Auditors’ Review Report dated 5 May 2016 is presented in
the introduction of this report.
II.
Explanations And Notes Prepared By Independent Auditors
None.
62
SECTION SEVEN: INFORMATION ON INTERIM ACTIVITY REPORT
Consolidated Activıiy Report
Türkiye Finans in Brief
Türkiye Finans was established as a joint venture between the National Commercial Bank (Saudi Arabia), Boydak Group
and the Ülker Group. Türkiye Finans is a leading company that achieved a transformation, underpinned by its “growth
reflex” and based its deeply-rooted know-how, experience and determination, and
its vision to carve a name for itself in the future of our country’s participation banking.
Türkiye Finans was established in 2005 with the merger between Anadolu Finans, the first special finance corporation
founded in 1991 with 100% domestic funds, and Family Finans, which operated in the participation banking sector
between 1985 and 2001 under the name of Faisal Finans Kurumu.
In 2005, the Boydak Group and the Ülker Group combined these two participation banks under a single roof. This union
of strengths was undertaken in order to generate more value for Turkey and to bolster the competitive advantages of both
entities.
The merger between Anadolu Finans and Family Finans was approved by the Banking Regulation and Supervision
Agency (BRSA) on 28 December 2005. The name of the bank was changed to Türkiye Finans Katılım Bankası A.Ş. on
30 December 2005.
This merger brought a new growth momentum into the participation banking sector and Türkiye Finans quickly became
one of biggest participation banks in Turkey.
The Bank, which assumed a new and strong corporate identity following the merger, brought a new breath of fresh air to
participation banking, whose target audience had been growing steadily.
A new era of tremendous change and transformation at Türkiye Finans began on 31 March 2008 when the National
Commercial Bank (NCB) acquired a 60% stake in the Bank. By bringing together the strengths of the Boydak and the
Ülker groups, two of Turkey’s leading industrial conglomerates, with those of the Middle East’s
most deeply-capitalized bank, the capital structure and vision of this partnership resulted in its emergence as a leading
player in the business of participation banking.
Proving its strength at the outset of 2016
Türkiye Finans has laid out a five-year plan under which it has redefined its goals and growth roadmap. Accordingly, the
Bank is currently undertaking a variety of projects with a customer oriented approach and has achieved important
progress in further developing its technological infrastructure, business processes and service approach.
Starting from the benchmark of providing a flawless customer experience, Türkiye Finans launched a new initiative
entitled the “Customer Experience and Multichannel Strategy Project” to implement a series of modifications and
improvements in its business making styles and processes. During this new period, the Bank set out a path of stronger
growth with its experience, technological capability and vision.
Türkiye Finans, taking firm steps forward in the path of sustainable growth, provides innovative and value added
products, services and solutions to a wide customer profile in commercial/corporate banking, SME banking and
individual banking segments through its strong service platform consisting of 4,103 employees, 286 branches and
effective alternative distribution channels as of the first quarter of 2016.
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Summary Financial Belonging to the Current Period
(TL thousand)
31.03.2016
31.12.2015
Assets
39,086,204
38,535,576
1
6,217,085
5,597,872
(3)
8
Cash and Banks
Securities
Loans
Receivables from Leases
Change (%)
2,708,520
2,786,300
27,216,181
27,114,891
-
1,725,269
1,782,011
(3)
Fixed Assets (Net)
576,441
529,095
9
Other Assets
642,708
725,407
(11)
Liabilities
39,086,204
38,535,576
1
Funds Collected
22,359,939
22,176,719
1
(1)
-Special Current Accounts
5,361,703
5,431,586
-Participation Accounts*
16,998,236
16,745,133
2
4,887,409
4,523,282
8
Loans Received
717,418
733,023
(2)
Shareholders’ Equity
Subordinated Loans
3,456,983
3,348,091
3
-Paid-up Capital
2,600,000
2,600,000
-
Other Liabilities
7,664,455
7,754,461
(1)
Non-Cash Loans
12,553,037
12,502,404
-
01/01/2016-31/03/2016
01/01/2015-31/03/2015
Change (%)
764,021
658,171
16
(361,139)
(335,752)
8
402,882
322,419
25
(7)
Income and Expense Accounts
Profit Share Income
Profit Share Expenses
Net Profit Share Income
Net Fee and Commission Income
36,337
39,113
Other Non-Profit Income
88,980
53,483
66
(416,945)
(333,860)
25
Non-Profit Share Expenses
Profit Before Tax
111,254
81,155
37
Provision for Taxes
(24,616)
(16,854)
46
86,638
64,301
35
Net Period Profit
31/03/2016
31/12/2015
Capital Adequacy Ratio
Key Ratios (%)
13.32
13.50
Return on Equity (Annual)
10.19
8.05
Loans/Total Assets**
74.05
74.99
Current Accounts/Funds Collected
23.98
24.49
4.69
4.22
31/03/2016
31/12/2015
Non-Performing Loans (Gross)/Loans
Other
Total Number of Branches
Total Number of Personnel
(*)Participation accounts include precious-metal accounts.
(**) Loans include financial leasing receivables.
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286
286
4,103
4,132
Amendments Made In Articles of Incorporation and Their ReasonsBankacılık Düzenleme ve
Subparagraph of 17.10 of article 17 of our Bank’s Article of Incorporation having a heading as “Board of
Directors of the Bank” has been amended in the framework of permissions of Department of Implementation
III of Banking Regulation and Supervision Authority dated 09.03.2016 and numbered E.3547 and General
Directorate of Ministry of Customs and Trade of Republic of Turkey dated 10.03.2016 and numbered
50035491-431.02 and the aforementioned amendment has been registered on 04.04.2016 and announced in
Trade Registry Gazette dated 08.04.2016 and numbered 9050.
The aforementioned amendment has been made in order to perform Board of Directors meetings of our Bank
at any places and at any time determined by Board of Directors or in an electronic environment in Turkey
and abroad.
FORMER TEXT
B. BOARD OF DIRECTORS
ARTİCLE17
17.10.- Board of Directors meetings may be held at times and
venues in Turkey or abroad as
decided by the Board of Directors.
CURRENT TEXT
B. BOARD OF DIRECTORS
ARTİCLE17
17.10.- Board of Directors’ Meetings may be held at times and venues in Turkey or abroad, or by electronic means as decided by the
Board of Directors (“BoD”). Those who have the right to attend the
Company’s BoD Meetings (“the right holders”) may attend such
meetings by electronic means in accordance with TCC, Article
1527. Pursuant to the provisions of the “Communiqué on Electronic
Assembly Meetings of Commercial Companies excluding General
Assembly Meetings of Joint-Stock Companies”, the Company may
set up or outsource an Electronic Meeting System to allow the right
holders to electronically attend and vote in the BoD Meetings. The
right holders shall be enabled to exercise their rights, which are
specified in the relevant legislation, in the meetings using the system set up or outsourced pursuant to the provisions herein in accordance with the aforementioned Communiqué.
Shares belonging to Board of Directors and Executive Vice Presidents in Türkiye Finans
Shares belonging to Vice Chairman Dear Mustafa Boydak are 1.90% in Türkiye Finans. All other Board of
Directors and all executive vice presidents except for Vice Chairman Dear Mustafa Boydak do not have any
share in Türkiye Finans.
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Chairman’s Message
Our bank completed the first quarter of 2016 with a decisiveness to further develop its consistent growth and financial
performance.
Our bank’s net current profit in Q1 2016 is TRY 86.7 million, 35% higher than what it was in the same period of the
previous year (TRY 64.1 million).
At the end of the first quarter, our bank’s total assets had increased by 1.4%, comparing to the end of previous year, from
TRY 38.6 billion to TRY 39.1 billion.
In Q1 2016, total funds collected reached to TRY 22.4 billion with an increase of 12% compared to TRY 19.9 billion in Q1
2015.
Total funds given (including leasing receivables) increased by 11% as compared with the same period of the previous year
from TRY 25.7 billion to TRY 28.6 billion.
In Q1 2016, our bank’s total equity amounted to TRY 3.5 billion. Capital adequacy ratio is 13.35%.
Türkiye Finans’s profit share income in Q1 2016 amounted to TRY 764 million, 17% higher than what it was in the same
period of the previous year.
We regard the growth potential of both Turkish economy and Turkish banking industry as having great opportunity for
investors.
Having successfully withstood, as demonstrated by its first-quarter performance, the heightened competition of a
participation banking sector whose players increased to six in number at the beginning of 2016, our bank is now ready for
even more successes.
In keeping with this, we shall continue to grow and to develop by increasing our efforts and creating value for everyone.
I offer my appreciation to our shareholders, our human resources, our customers, and all of our other stakeholders whose
efforts contributed to our success.
Very truly yours,
Saeed Mohammed A Alghamdi
Chairman of the Board of Directors
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General Manager’s message
Honored stakeholders:
Having demonstrated a performance paralleling its sector’s growth while adhering steadfastly to its strategies despite the
ever-changing market conditions of 2015, Türkiye Finans therefore embarked upon 2016 with new expectations and hopes.
Taking an overall perspective from the standpoint of the Turkish economy, we foresee that 2016 will be a year in which
growth will begin to gain momentum while imbalances and risks will begin to subside.
For our own part we laid the groundwork last year for new undertakings by making organizational changes needed and further clarified our vision so that our bank could enter 2016 more strongly and be competitively better positioned to increase
its market share.
Our financial results are indicative of our steady growth and development.
According to its first-quarter 2016 results, our bank’s total assets have reached TRL 39.1 billion; its total collected funds
have risen to TRL 22.4 billion and the latter account for a 57% of its balance sheet. Our total funded credits, including our
leasing receivables, amounted to TRL 28.6 billion.
As our policy of retaining prior-year profits remains in effect, our shareholders’ equity has reached TRL 3.5 billion. Our
bank’s pre-tax profit and net current profit amount to TRL 111 million and TRL 87 million respectively.
Our major shareholder has confirmed its confidence in the Turkish economy, our sector, and our bank.
At our annual general meeting held on March 31st, our major shareholder, The National Commercial Bank (NCB), once
again reiterated its confidence in our bank and the Turkish economy and its banking industry and stated that its support for
our bank would continue.
Emphasizing that both the structural strength and the growth potential of the Turkish economy and its banking industry
presented great opportunities for investors, NCB once again expressed its support for our bank. The ongoing evidence of
our valued Turkish shareholders’ support for our bank was additionally instrumental to our ability to embark upon 2016
with even greater determination and courage while also providing the motivation to embrace our work even more intensely..
We continue to add value to our stakeholders through the products and services that we develop.
In line with its mission to act as a financial consultant, our bank has recently joined Findeks, a financial services platform
owned and operated by Credit Bureau of Turkey. Findeks is now accessible to our retail and commercial banking customers through all of our bank’s branches. This service platform, which is being provided in the form of Findeks “packages”,
will make it possible for us to maximize customer satisfaction.
Investors’ demand for our leasing certificates is increasing day by day.
Our bank issues leasing certificates in order both to diversify its sources of funding and to take advantage of capital market
financing opportunities. Leasing certificates are a highly-liquid, robustly-collateralized, and therefore safe investment alternative which is compatible with interest-free financing and which our bank offers to both domestic and international investors. During the first three months of 2016 our bank issued leasing certificates worth a total of TRL 200 million, in one
case a public offering that was specifically intended for investors in Turkey. The attention that domestic investors gave to
all of the issues however is evidence of the tremendous confidence which they have in the Türkiye Finans name.
At the same time our bank also continues to collaborate with chambers of commerce and industry in order to provide financing in the form of sector-specific solution packages to their SME members, which make up one of our priority business lines..
Our bank has been voted “Best Islamic Bank in Turkey” for the third time in the international arena.
Our bank continues to garner awards and recognitions. In the “IFN Best Banks Poll 2015” conducted by Islamic Finance
News, one of the world’s leading publications in Islamic finance markets, Türkiye Finans was again victorious and recognized as the “Best Islamic Bank in Turkey” by IFN readers. The international recognition of our bank’s success in 2015 after having previously brought the same award home in 2013 and 2014 is evidence of the correctness of what we do.
In February of this year our bank became the recipient of kariyer.net’s “Respect for People” award.
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As a result of the efforts that our bank’s Recruitment & Career Planning Department makes in line with its “To Be a Team
is To Be Respectful” philosophy as well as its same-day response to the nearly 460,000 job applications which the bank received through the kariyer.net website in 2015, Türkiye Finans has just received kariyer.net’s “Respect for People” award
for the fifth year in a row.
Competition engenders abundance.
Believing that constructive and ethical competition will lead to beneficial results in every area, I want to say that we are
quite pleased that our country’s publicly-owned banks are entering the participation banking sector.
The advent of two publicly-owned participation banks in our sector during the most recent year will, in my opinion, increase the sector’s product and service quality and diversity and impart additional momentum to its growth. Furthermore
we also foresee that these two new arrivals will support the spread of participation banking throughout the country, especially in the Anatolian heartland, and that with a broader audience thus being reached, awareness of our sector will increase
as likewise will demand for and use of its products.
Another important recent development is that Turkey’s participation banking sector is advancing sure-footedly towards becoming a regional force abroad as well. Steadily increasing its strength through the new branches and offices that it is
opening in Northern Iraq and in North African and Gulf countries, our sector is a rising star in a global arena in which it
will find opportunities to expand its portfolio through new investment prospects and new customer acquisitions.
In 2016 we will continue to maintain our strong position in participation banking through the innovative products
and services that we offer through our “principled banking” approach..
With the first quarter of 2016 now behind us, we believe that the Turkish economy’s growth will gain additional momentum as geopolitical risks subside and that Turkey will advance sustainably and successfully as it continues to distinguish itself among other developing countries.
In 2016 our bank will be giving additional attention to spurring its growth in the retail banking segment while continuing to
serve the SME and commercial banking segments. Türkiye Finans’s goal will be to achieve 13% and 11% rates of growth
in its collected funds and its funded credits respectively.
Our primary focus in 2016 will be on managing risk effectively, on developing our distribution network, on increasing our
productivity, and on enhancing our customers’ experience.
Believing that the digital transformation that our sector is undergoing is a matter of key importance, we will be seeking to
develop our technological infrastructure through greater investment in it.
Believing also in the importance of long-term and sustainable customer relationships in its sector, our bank is committed to
transforming its customer business relationships into customer loyalty.
As one of the leading champions and innovators in the participation banking sector, Türkiye Finans, its shareholders, its
Board of Directors, its customers, and all of its employees will continue to join forces in order to instill confidence, pursue
growth through collaboration, and achieve even greater successes time and time again in line with our bank’s goals.
I therefore take this opportunity to thank every stakeholder whose efforts have helped make the Türkiye Finans brand as
strong as it is.
Very truly yours,
Osman ÇELİK
Genel Müdür
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Macro-economic Perspective and Developments in Banking Sector
Global Macro-economic perspective
2015 was a year in which the risk appetite decreased through the appreciation of USD globally because of concerns towards the interest rate hike of Federal Reserve Bank (FED). The first interest hike in USA, after many years, occurred at
the end of 2015, in December. Therefore, the first quarter of 2016 has become a more relaxed period for financial markets
thanks to strong messages stating that the second interest rate hike shall not occur early as opposed to the popular belief.
The global economy is in a chronic stability period because of ultra-loose money and finance policies implemented in order
to rise economies into prosperity in structural problems and crisis period causing 2008 global crisis. Therefore, it is anticipated that potential growth in whole world decreased significantly when compared to period before crisis and it is almost
impossible for reel interests to turn back to their former levels. Ambivalent recovery is rushed up by both structural problems in several leading economies and also by high public debt in several developed economies. The requirement for global coordinated measures increases. The economy of USA recovers mildly while the recovery in Asia and Europe is more
limited. As a reflection of the aforementioned issue, FED takes interest rate hike to its agenda while Asia and Europe regions take additional expanding policy actions in the first quarter of 2016.
Global economic activity has slowed down compared to former quarter in the first quarter of 2016 because of weakening
global trade volume depending upon increasing geopolitical problems and USD protecting its balance until the end of February. Assets of emerging countries in financial markets has sharply gained value as a result of "pigeon" approach of FED
and expansionary fiscal policies of Central Bank of Europe following the G20 Meeting held in February.
The outlook of Turkey's Economy
The economy of Turkey has sustained to be the country having the most significant growth among European countries with
5.7% in the last quarter of the previous year while it has been one of the leading countries in G20 after several Asian economies. The economy of Turkey, passing critical structural developments in transition to sustainable growth thanks to
measures taken at the end of 2010, is anticipated to preserve its global positive dominance during the following period.
Economy of Turkey provides significant opportunities to investors compared to its competitors thanks to well capitalized
banking sector, public debt stock which is fairly lower than other developed and developing country averages and with its
balanced growth perspective giving priority to export and import. The foreign trade deficit and current accounts deficit
have been narrowed thanks to recovery in European markets, especially in Germany and United Kingdom, while the import
volumes to Russia and Iraq decreased because of geopolitical problems. The inflation, which is an important obstacle to
reach stronger growth rates, has decreased to 7.5% in the first quarter of 2016 with a sharp adjustment in good prices from
8.8%, which was the rate at the end of 2015. It is anticipated that the core inflation shall decrease gradually during the remaining period of the year while WPI inflation shall be floating close to its current level.
Turkish banking sector and participation banking
The participating bank number has increased to 6 from 4 following the inclusion of public banks and having an employee
number over 16.000. There has been no big changes in the number of branches and employees in the sector within the first
quarter of 2016.
Fundamental balance sheet growth in sector and participation banks have been limited in the first quarter of 2016. Assets of
sector and expandable funds has become TL 2.4 trillion and TL 1.6 trillion respectively with an increase of 2% while funds
collected has reached to TL 1.4 trillion with an increase ratio of 3%. The assets of the participation banks have become TL
121.4 billion in the same period while the expandable fund has reached to TL 83 billion. The collected funds have become
around TL 74 billion. Expandable funds/collected funds ratio has become 114% in sector while it has been 111% in participation banks.
Net dividend income has reached to TL 21.3 billion through an increase ratio of 22% in the sector while it has become TL
1.1 billion with an increase ratio of 24% for participation banks. Net profit of the sector in the first quarter of 2016 has become TL 8.2 billion while net profit of participation banks has become TL 70 million in the same period. Equities of participation banks has increased twice of sector reaching up to TL 11.5 billion while equities of sector has become TL 273 billion with an increase of 4%.
BASEL III impacts shall be observed in the sector in 2016. The capital adequacy standard ratio of the sector decreased to
15.49% from 15.57 in the first quarter of 2016 while the capital adequacy standard ratio has become 14.94% with a decrease of 0.2%.
Notes:
(1) Expandable funds and rates related to expandable funds includes net non-performing loans, credit interest and income accrual rediscounts and net financial leasing receivables.
(2) Collected funds and rates related to collected funds include banks deposits and deposit interest rediscounts.
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Reviews of First quarter of 2016
Review of First quarter results of 2016 in Türkiye Finans
The size of assets of Türkiye Finans has reached to TL 39.1 billion with an increase ratio of 1.4% compared to the end of
2014. The increase in expandable funds has been recorded as 0.2% compared to 2015 year-end and the amount of expandable funds has reached to TL 28.9 billion including financial leasing receivables. The funds, having a 57% share in
total liabilities, has reached to TL 22.4 billion with an increase of 0.8% in the first quarter of 2016.
Dividend income of Türkiye Finans has reached to TL764 million with an increase ratio of 16% compared to the same
period of previous period in the first quarter of 2016 and increase in net dividend income has become 25%. The net period profit of our Bank has become TL 86.6 million with an increase ratio of 35% compared to same period of previous period in the first quarter of 2016.
Capital Adequacy Standard Ratio, which was 13.50% at the end of 2015, has become 13.32% as of March 2016.
Türkiye Finans continues to increase its customer access via different channels through its 285 domestic branches, 1 foreign branch (Bahrain), over 4,000 employees, internet branch, mobile branch and 567 ATMs.
Completed projects/new product and services and cooperation
Endowment account products has been presented to use of our customers which shall provide government contribution to
our citizens who will marry or purchase an immovable property.
Designs of all our ATM's screens have been updated towards the recent requirements and expectations of our customers
while new transactions types have been added to our ATMs in order increase their functionality within our digital banking strategy.
Customer identification processes are renewed through revising our system infrastructure in scope of additional provisions brought to article regarding the Determination of Beneficiary by Financial Crimes Investigation Board.
Completed main campaigns
Credit card and automatic payment instructions campaigns have been presented to new customers.
Lease certificate campaign has been presented to our individual and corporate customers.
Participation account with high sharing rate campaign has been presented to our individual customers.
Private Reserve Account campaign has been presented to teachers working in education sector.
"Financier, Active Card and Credit Card campaigns have been presented for customer activation.
Dividend off Reserve Account campaign has been presented to meet emergency requirements of our customers having
cash withdrawal transactions in a frequent manner.
Rewards
In the first quarter of 2016:
"The best participation banks of Turkey" according to "Best Banks Questionnaire" of Islamic Finance News magazine
2015 for the third time.
"Respect to people" award of Kariyer.net for the fifth time in the category of "Private reply to each candidate" with 100%
reply rate within the same day.
Expectations and anticipations regarding the following period related to Türkiye Finans
In line with five year strategy of Türkiye Finans, it is aimed to have a size of assets amounting to TL 50 billion at the end
of 2017 with a growth rate over 20% of sector average each year.
Our strategic priorities, which shall support our corporate strategy under "Principled Banking" and contribute to sustainable growth of our Bank in 2016, have been collected under six headings including Sustainable Growth in Collected and
Expandable Funds, Update of Information Systems and Improvement of Customer experience.
Türkiye Finans, establishing its first foreign branch in Bahrein in 2015, aims to strengthen its relations with Bay Area in
the future periods.
Türkiye Finans shall continue to its advertisement and communication activities in order to strengthen its corporate brand.
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Financial Position, Profitability and Evaluation regarding Solvency
Certain Assets / Liabilities (th TL)
31.12.2014
31.12.2015
31.03.2016
Total Loans*
24,396,681
28,896,902
28,941,450
Total Assets
33,489,910
38,535,576
39,086,204
Funds Collected
19,112,390
22,176,719
22,359,939
3,150,283
3,348,091
3,456,983
1.14
0.72
0.89
Return on Average Equity (ROAE %)
11.78
8.02
10.16
Capital Adequacy Ratio (%)
12.47
13.5
13.32
Net Profit (th TL)
31.03.2014
31.03.2015
31.03.2016
Net Period Profit
87,806
64,301
86,638
Shareholders’ Equity
Return on Average Assets (ROAA %)
(*) Expandable funds amount includes net non-performing funds and financial leasing.
Quality of Assets and Profitability
The seize of assets of our Bank has reached to TL 39.1 billion with an increase ratio of 1.4% compared to year-end of
previous period as of March 2016. Pre-tax profit of our Bank has reached to TL111 million while net income for the
period has reached to TL 87 million.
Collected Funds and Equities
The most important funding resources of our Bank, collected funds, has reached to TL 22.4 billion with an increase rate
of 1% compared to year-end of previous period in the first quarter of 2016. The share of the collected funds in the balance
sheet is 57% and consists of TL and foreign currency account at ratios of 53% and 47% respectively.
Additionally, equities has reached to TL 3.5 billion via keeping retained earnings within the body of the Bank.
The capital adequacy standard ratio, which was 13.50% in 2015 year-end, has become 13.32% as of March 2016.
Material Disclosures of Türkiye Finans Katılım Bankası A.Ş. for the first quarter of 2016
15.01.2016
Resignation of member of Board of Directors
Mr. Oğuz Kayhan, member of board of directors and chairman of audit committee, has resigned from his respective duty
as of 15.01.2016.
27.01.2016
Authorization certificate issued by CMB
Our bank has been permitted to operate as intermediary to order transmission, transaction intermediary, portfolio
intermediary and limited custody in accordance with the Communique on Foundation and Activity principals of
Investment Companies numbered III.39-1 and Communique on Investment Services and Operations and Side services
numbered III-37.1 as a result of our application to CMB for the renewal of authorization certificates issued by CMB in
accordance with Capital Law numbered 2499.
Authorization certificate dated 15.01.2016 and numbered BNK-022(109) given to our Bank by CMB and table related to
investment services and activities are attached.
In this context, we registered cession of our Off Board Transaction Intermediary authorization certificate dated
07.06.2012 and numbered 109 in trade registry and announced in Trade Registry Gazette of Turkey dated January 26,
2016 and numbered 8997.
12.06.2016
12 months financials for 2015
Consolidated and non-consolidated Balance sheet, Income statement, Cash flow statement, off-balance sheet statement,
changes in equity statement, Financial statement disclosures and state of responsibility have been announced to public.
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19.02.2016
25th Ordinary General Assembly Meeting Call
It has been announced to public that 25th General Assembly Meeting shall be held on 31.03.2016 at Hürriyet Mah.
Adnan Kahveci Cad. No:131 Yakacık/Kartal, Istanbul at 9 o’clock.
02.03.2016
Assignment of Member of Board of Directors
Board of Directors of our Bank has decided Mr. Majed Hamdan AlGhamdi to be assigned as member of Board of
Directors following the resignation of Mr. Oğuz Kayhan.
02.03.2016
Resolution of Board of Directors related to Dividend Distribution
Board of Directors of our Bank has decided to make a legal reserve at an amount of TL 11,294,206 in accordance with
article 519/1 of TCC from net income for period amounting to TL 261,076,352 which remains following the deduction of
tax and legal liabilities at an amount of TL 71,748,708 from the net period income for 2015 at an amount of TL
332,825,060 and to offer Board of Directors to make an excess reserve at an amount of TL249,782,146 from the
remaining amount.
10.03.2016
Solo Activity Report
Our Bank has announced activity report and state of responsibility to public regarding 01.01.2015 – 31.12.2015 period.
31.03.2016
Result of 25th Ordinary General Assembly Meeting
25th Ordinary General Assembly of our Bank has been announced to public.
31.03.2016
Assignment of Deputy General Manager
Board of Directors of our Bank has decided to assign Mr. Mete Kanat, director responsible for Risk Management Centre,
as the Deputy General Manager unless there shall be a negative opinion of BRSA.
Presentation of Information related to Consolidated Shareholders
TF VARLIK KİRALAMA A.Ş.
TF Varlık Kiralama A.Ş. has been established in February 2013 as the associate of the Bank to mediate to Bank in finding
fund resources through performing domestic and foreign lease certificate issues of Türkiye Finans Katılım Bankası A.Ş.
The Company plans to introduce lease certificate through providing information to investors via wide branch network of
the Bank in Turkey by explaining the characteristics of lease certificate and the appropriateness of its income to
participation banking. The Company also aims to perform domestic and foreign capital markets issues of the Bank.
Our Company, having the biggest size of assets among the asset leasing companies, has performed 2 domestic lease
certificate issues in the first quarter of 2016. The total amount of domestic issuances is TL200 million in the first quarter
of 2016.
Our Company has made a lease certificate issue at an amount of TL 100 million, 178 days maturity, whose fund user is
Türkiye Finans Katılım Bankası, through sales to qualified investors method on January 19, 2016.
Our Company has made a lease certificate issue at an amount of TL 100 million, 178 days maturity, whose fund user is
Türkiye Finans Katılım Bankası, through public offering method on February 15, 2016. It was a successful public
offering having a tense interest of individual and corporate investors.
Return and capital payment of lease certificates, issued in previous periods by our Company at an amount of TL 80
million with 6 month maturity, has been made on January 19, 2016.
Return and capital payment of private sector lease certificates, issued in previous periods by our Company at an amount
of TL 7.7 million with 728 days maturity, has been made on January 20, 2016. Additionally fourth return and capital
payment of private sector lease certificates at an amount of TL 23.8 million with 1092 days maturity on the
aforementioned date.
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The second return and capital payment of lease certificate issued abroad in February 2015 at an amount of MYR 150
million with 5 years maturity has been made on February 11, 2016.
Return and capital payment of lease certificates, issued in previous periods by our Company at an amount of TL 100
million with 6 month maturity, has been made on February 15, 2016.
The first return and capital payment of lease certificate issued in November 2015 by our Company at an amount of TL
150 million with 179 days maturity having quarterly return has been made on February 24, 2016.
Our Company had a successful period through strong requests made to lease certificate issues and lease certificated
performed in the first quarter of 2016.
TFKB VARLIK KİRALAMA A.Ş.
TFKB Varlık Kiralama A.Ş. has been established in July 2014 as an associate of Türkiye Finans Katılım Bankası A.Ş
aiming to perform lease certificate issues of resource institutions in private sector excluding Türkiye Finans Katılım
Bankası.
Our Company has made lease certificate issue in capital markets at an amount of TL 314 million since its foundation.
The fifth return and capital payment of private sector lease certificate, issued on December 31, 2014 at an amount of TL
71 million with a 5 years maturity, has been made on 30.03.2016.
The third return and capital payment of private sector lease certificate, issued on May 22, 2015 at an amount of TL 143
million with a 5 years maturity, has been made on February 19, 2016.
The fourth return and capital payment of private sector lease certificate, issued on March 24, 2015 at an amount of TL
100 million with a 5 years maturity, has been made on February, 22 2016.
Our Company aims to catch a fast growth in line with the growth in the sector through sustaining its pioneering position
in lease certificate issues of resource institutions in private sector.
73

Asya Finans Kurumu A.Ş.

Transcription

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