ABank Annual Report 2012 - Shareholder Information

Transcription

ABank 2012 ANNUAL REVIEW
The first letter of growth
Head Office: Cumhuriyet Cad. No: 46 34367 Şişli/Istanbul-TURKEY
T: +90212 315 65 00 F: +90212 225 76 15
www.abank.com.tr
Contents
ABANK AT A GLANCE
ABank in Brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02
Vision, Mission and Working Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Message from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Message from the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Senior Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Activities in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
International Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Market Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Research and Development Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
MANAGEMENT AND CORPORATE GOVERNANCE
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Information on Human Resources Implementations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Organization Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
FINANCIAL INFORMATION AND RISK MANAGEMENT
Risk Management Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
ADDITIONAL INFORMATION
Anadolu Group in Brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Anadolu Group Financial Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
ABank Financial Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
AYatırım . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Alternatif Yatırım Ortaklığı . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Financial Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Branch Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Alternatifbank A.Ş. Consolidated Financial Statements Together With Auditor’s Report 31 December 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
As a medium sized bank established
in 1992, we have succeeded in
attracting attention in a short span
of time thanks to our outstanding
performance.
We have always prioritized the
satisfaction and happiness of our
customers, employees and investors.
Thanks to our achievements in this
area, we have become identified with
the concept of “Happy Banking.”
As we are just at the beginning of our
long success story, we are committed
to sustaining strong and steady
growth while adding value to life by
making a difference in the banking
sector with only one letter, A.
2
ABank in Brief
Thanks to the strong support provided by Anadolu
Group, ABank is a highly reliable, reputable and
preferred solution partner in both international and
domestic markets.
Established in 1991 and opening the
doors to it first branch in 1992, ABank
ranks among the most active players
in the Turkish banking sector, by
maintaining steady growth on a solid
corporate and financial foundation.
Providing corporate, commercial and
retail banking customers with high value
added products, services and solutions,
ABank is also taking determined steps
to develop its SME banking business to
contribute to the country’s development.
Offering shares to the public in 1995,
ABank began to operate under the
ownership of Anadolu Group in 1996.
With the strong support of its major
shareholder Anadolu Group, the Bank
inspires the confidence of its customers.
With a customer-oriented and dynamic
service approach, ongoing investments,
sophisticated technological solutions,
professional staff and high quality
services, ABank sustains robust growth
by taking confident steps forward.
ABank is also a highly reliable, reputable
and preferred solution partner in
international markets.
Having the vision of becoming a
steadily growing, most preferred and
highly competitive bank, ABank strives
to be efficient and profitable without
compromising its service quality. The
Bank provides solutions for customers
under all market conditions, operating
with 66 branches in 25 cities in Turkey as
well as alternative distribution channels
and employing a well-skilled team of
1,230 personnel.
ABank has been trading on the
Istanbul Stock Exchange under the
symbol ALNTF since July 3, 1995. As of
December 31, 2012, Anadolu Endüstri
Holding A.Ş., a subsidiary of Anadolu
Group, holds a 77.71% stake in ABank.
Some 18.12% of the Bank’s shares are
held by other various Anadolu Group
companies, and the remaining 4.17%
shares are publicly held.
ABANK AT A GLANCE
CORPORATE GOVERNANCE
FINANCIAL INFORMATION
FINANCIAL TABLES
ABank has
maintained its
steady growth.
Working to achieve its ambition of
growing steadily, ABank’s total assets
reached TL 8 billion as of year-end 2012.
3
23.3%
INCREASE IN
TOTAL ASSETS
7,893
6,401
2011
2012
TL million
IFRS Consolidated
Bengühan Dizi, Maltepe Branch
mbition
6
Vision
To become the “preferred
bank” of customers, by
providing solution-oriented
and world-class services in
the region.
ABANK AT A GLANCE
Mission
To become the pioneer
financial institution by
creating economic value, for
the benefit and satisfaction
of customers, shareholders
and employees.
FINANCIAL TABLES
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8
Working Principles
• To provide excellence for our
customers within the economic
rationale
• To remain strictly committed to
ethical principles
• To be dedicated to banking
discipline
• To create a working environment
where success is awarded
• To encourage creativity
• To place corporate social
responsibilities at the forefront
ABANK AT A GLANCE
FINANCIAL TABLES
ABank has continued
to exceed its targets.
In 2012, ABank increased its net profit
by 289% to TL 81.3 million, and
demonstrated great advancement
with return on equity of 16.02%,
compared to 4.24% a year earlier.
9
289%
81.3
INCREASE IN
NET PROFIT
20.9
2011
2012
TL million
IFRS Consolidated
Andaç Oral, Levent Branch
dvancement
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Financial Highlights (IFRS Consolidated)
Volumes (TL million)
5,144
4,170
4,281
3,648
20.2%
2011
2012
Increase In
CASH LOANS
14.3%
2011
2012
Increase In
DEPOSITS
601
507
2,468
1,730
42.7%
18.5%
2011
2012
Increase In
EQUITY
2011
2012
Increase In
FUNDS BORROWED
AND OTHER MONEY
MARKET
ABANK AT A GLANCE
Key Ratios (%)
16.02
4.24
1.14
0.39
2011
Net PROFIT/
Average Assets
2012
2011
Return on
EquIty
2012
123
117
66.8
2011
65.2
2012
Cash Loans /
Total Assets
2011
2012
Loans / DeposIts
23.8
20.6
16.6
13.1
2011
2012
funds
borrowed /
TOTAL LIABILITIES
2011
2012
Securities /
Total Assets
FINANCIAL TABLES
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Message from the Chairman
ABank completed its transformation process which
was launched to achieve sustainable growth and
further development for the future, after implementing
fundamental changes in its technological and
organizational structure over the last several years.
The postponement of the “fiscal cliff”
in the US at the end of 2012 coupled
with decreased country-based risks in
Europe resulted in a decline in global
risk perception and a stronger capital
markets performance. Meanwhile,
questions related to the long-term
risks of central banks’ preferences
for expansionary monetary policies
increased.
The Turkish banking sector,
after enduring the global
crisis, has now rebounded and
sustained its robust outlook.
The risks in the global economy
prevail.
Expansionary monetary policies adopted
by the central banks of developed
countries during the post crisis period
to stimulate the economy, continued
in 2012. The positive impacts of these
efforts on economic activity began to be
felt with a delay while a weak outlook on
the growth side persists.
Due to its effective economic policies
and robust banking industry, Turkey
differentiated itself positively in 2012.
In 2012, economic growth rates in
emerging markets remained below their
potential due to the slowdown in the
world’s developed economies. Despite
posting 3% growth for the year, Turkey
saw a significant decline in the current
account deficit to GDP ratio, an important
risk factor for the economy. This positive
development was a consequence of
the effective economic and monetary
policies implemented during 2012. As a
result of this solid performance, Turkey’s
credit rating was raised to investment
grade by Fitch, while declining interest
rates and lower inflation further
bolstered the country’s stable economic
environment.
ABANK AT A GLANCE
Due to the slowdown in the global
economy and the Central Bank’s policy
of controlled growth to sustain economic
stability, the Turkish banking sector grew
at a slower pace in 2012 compared to
2011. The sector’s total assets rose 10%
to TL 1.3 trillion, compared to 21% growth
in the previous year. During the first half
of the year, the banking sector recorded
limited growth due to the tightening
policies of the Central Bank. However, in
the third and fourth quarters lowered risk
factors caused the Central Bank to adopt
a more expansionary stance, which
fueled growth in the sector.
Asset growth in the banking sector was
driven by increased lending and funded
by rising deposits, repo transactions,
obligations to foreign institutions and
securities issued. Meanwhile, the share of
non-deposit sources in funding, steadily
rose during the year.
Policy measures to curtail lending
limited the sector’s growth in 2012. Also,
new market entrants made for a more
challenging competitive environment.
However, the higher efficiency and
more flexible operations of small and
medium size banks helped increase their
competitive edge.
ABank closed the year 2012 with a
solid performance.
An expanded branch network and a
more diversified customer portfolio made
ABank more resilient in the intensely
competitive market environment. While
enhancing its loan quality in 2012, ABank
also achieved its targets for loan growth.
ABank completed its transformation
process which was implemented
to achieve sustainable growth and
development for the future, after making
fundamental changes in its technological
and organizational structure over the last
several years. Thanks to the higher levels
of efficiency and dynamism resulting
from this transformation, ABank will
continue to move forward in line with its
long-term strategy.
ABank plans to expand its branch
network further while focusing
on achieving additional efficiency
improvements. Pursuant to the Bank’s
organic growth strategy, ABank targets
reaching a 150 branch network while
sustaining high asset quality.
FINANCIAL TABLES
The Anadolu Group will continue to
provide support to ABank on its journey
achieving solid and sustainable growth.
With its strong shareholder structure
and highly skilled professional team,
ABank looks to the future with utmost
confidence and commitment to
achieving even more ambitious targets.
I would like to extend my gratitude
to our employees for their successful
performance in 2012, to our shareholders
for their continuous support and to our
clients for their unfaltering trust.
Yours faithfully,
Tuncay Özilhan
Chairman
15
16
Board of Directors
Tuncay Özilhan, Board of Directors Chairman
Born in 1947 in Kayseri, Tuncay Özilhan graduated from Saint Joseph High School, Istanbul, and Istanbul University, Faculty of Economics,
before obtaining his master’s degree at Long Island University, US. After working at Erciyas Biracılık ve Malt Sanayii A.Ş. as General
Manager, Mr. Özilhan became the Beer Group Coordinator at Anadolu Group, followed by General Coordinator, before finally being
appointed Anadolu Group Executive Chairman in 1984. Mr. Özilhan, who rose to the position of Chairman of the Board of Directors of
the Group in 2007, continues to serve as Chairman of the Board in many of the Group companies in addition to ABank, which joined
Anadolu Group in 1996. From 2001 to 2003, Mr. Özilhan served as Chairman of TÜSİAD (Turkish Industrialists’ and Businessmen’s
Association). Currently, he is the Vice Chairman of TÜSİAD High Counsel, member of the Board of Directors at DEİK (Foreign Economic
Relations Board), Chairman of the Turkish – Russian Executive Business Council of DEİK, Estonian Honorary Consulate General and
President of the Anadolu Efes Sports Club.
Adnan Aykol, Member of the Board
Born in 1958, Adnan Aykol graduated from Marmara University, Department of Public Administration. He began his professional career
at Garanti Bank in 1980 as Inspector. Subsequently, Mr. Aykol joined İktisat Bankası where he served as Inspector between 1985 and 1987
and as Operations Manager from 1987 to 1989. Between 1989 and 2008, he held various managerial positions at Demirbank and HSBC
Bank. In 2008, Mr. Aykol started working at BankPozitif as Assistant General Manager responsible for the Corporate Credits Department
where he served for two years. Mr. Aykol joined ABank as a Board Member in April 2012.
Bahattin Gürbüz, Member of the Board
Born in 1954, Bahattin Gürbüz graduated from Middle East Technical University, Department of Political Sciences and Public
Administration. He also holds an executive MBA from Kavrakoğlu Management Institute. Mr. Gürbüz began his professional career at
Türkiye İş Bankası, Kayseri in the Export-Import and Foreign Operations Department. In 1983, he joined Turkish Foreign Trade Bank as
Inspector and held various positions from 1983 to 2004. Between 1997 and 2004, he served as a Member of the Board of Directors
at Dış Factoring, Dış Leasing and Dışbank Malta. During the same period, he was also the Executive Member of the Board of Poliport
Kimya Sanayi. From 2004 until 2005, he worked as Consultant to the Turkish Foreign Trade Bank. In 2006, he became the member of
the Supervisory Board of D Commerce Bank AD, Bulgaria in addition to serving as Consultant to Alfa Group Companies. In April 2011, he
joined ABank as a Board Member.
Cesur Kılınç, Member of the Board
Born in Istanbul in 1957, Cesur Kılınç graduated from Istanbul University, Faculty of Law. Subsequently, he worked as Legal Counsel for
ENKA and Coşar Müşavirlik A.Ş. He joined Anadolu Group as Legal Director in 1994 and became President of Legal Affairs of Anadolu
Group in 1999. Since that time, he has also served as a Board Member of ABank and since 2008, as a Board Member of ALease and
AYatırım and other companies within Anadolu Group.
Didem Çerçi, Member of the Board
Born in 1966, Didem Çerçi graduated from Boğaziçi University, Department of Business Administration. She started her professional
career as Product Manager at Bekoteknik Sanayi, a subsidiary of Koç Holding in 1990. In 1991, Ms. Çerçi joined İktisat Bankası where she
worked as Account Officer in the Corporate Banking Department until 1994. Subsequently, she joined WestLB, Istanbul Branch as Account
Manager in the Corporate Banking Department. In 1995, Ms. Çerçi started work at Demirbank and served as Senior Vice President in the
Corporate Banking Department. In 2000, she became Executive Vice President in the Corporate Banking Department at Ulusalbank. In
2001, Ms. Çerçi joined İktisat Bank where she became the Executive Vice President of Corporate Banking-Credit Risk Management. During
the same period, she served as Board Member at Interbank Card Center (BKM), İktisat Yatırım Menkul Değerler and Kablonet İletişim
Sistemleri. In 2002, Ms. Çerçi started work at ING Bank A.Ş. and held various positions including Regional Manager, Senior Vice President
and Executive Vice President in the Commercial Banking Department as well as Board Member of ING Factoring and ING Leasing. In
January 2011, Ms. Çerçi joined Aras Holding as CFO and then starting serving as a Board Member at ABank in April 2011.
ABANK AT A GLANCE
FINANCIAL TABLES
Güniz S. Şengölge, Member of the Board
Born in 1963, Güniz Şengölge graduated from Istanbul Robert College and Boğaziçi University, Faculty of British English Literature before
obtaining her master’s degree in International Management from Istanbul University. She began her banking career in 1985 at Citibank,
Istanbul and later moved on to Credit Lyonnais, Istanbul and Société Générale, Istanbul. In 1993, Ms. Şengölge joined Garanti Bank as
Assistant Manager in the Marketing Division and held various managerial positions there for 11 years; for the last six years at Garanti, she
has served as Executive Vice President in charge of Corporate Banking. In 2007, she joined ABank as a Board Member.
Kemal Semerciler, Member of the Board
Born in 1958, Kemal Semerciler graduated from Uludağ University, Faculty of Economic and Administrative Sciences. He started his
professional career in 1981 at Yapı Kredi Bankası (YKB) as Inspector. Mr. Semerciler held various managerial positions in the Financial
Control Department, Accounting Department, Board of Inspectors at YKB and served as Assistant General Manager responsible for
Compliance between 2006 and 2008. From 2008 until 2009, he worked as Consultant to the CEO at YKB. During his tenure, he also
held various board member and auditor positions at several YKB affiliates. In March 2010, Mr. Semerciler joined ABank as a Board
Member.
Mehmet Hurşit Zorlu, Member of the Board
Born in 1959, Mehmet Hurşit Zorlu holds a BCs degree in Economics from Istanbul University. Prior to joining Anadolu Group in 1984, he
held various positions at Toz Metal and Turkish Airlines. Mr. Zorlu joined Anadolu Group as a Marketing Specialist in the Efes Beverage
Group and held various positions including Assistant Marketing Manager, Assistant Project Development Manager, Project Development
Manager and Business Development & Investor Relations Director. He served as Chief Financial Officer (CFO) of Efes Beverage Group
from 2000 until 2008 and CFO of Anadolu Group between 2008 and 2013. In January 2013, Mr. Zorlu was appointed Deputy CEO of
Anadolu Group. Currently acting as Board Member in various Anadolu Group companies, Mr. Zorlu also serves as Board Member in
several organizations such as TKYD, TÜYİD, TEİD and KOTEDER.
Metin Ecevit, Member of the Board
Born in 1946, Metin Ecevit graduated from Political Sciences Faculty in 1967. He also received a master’s degree from Syracuse University
in economics. Between 1967 and 1980, he worked as Tax Inspector and Deputy General Manager of General Directorate of Revenues
in the Ministry of Finance. Mr. Ecevit joined Anadolu Group in 1980 and worked at various levels, serving as General Manager in the
automotive companies of the Group, as well as Board Member and Chairman of the Board of Directors. He retired in 2006, when he
held the position of Automotive Group President. He also served as Board Member and Chairman in the Association of Imported Car
Distributors in Turkey between 1992 and 2004. He is member of the board of directors of various Anadolu Group companies and
Chairman of Yazıcılar Holding. Mr. Ecevit joined the Board of Directors of ABank in April 2012.
Hamit Aydoğan, Member of the Board and CEO
Born in 1958, Hamit Aydoğan graduated from Middle East Technical University, Department of Political Sciences and Public
Administration. He joined Yapı Kredi Bank as Inspector in 1981. From 1986 until 1993, he held managerial positions in YKB branches in
various regions. Between 1993 and 1997, he served as Executive Vice President responsible for Corporate Credits Marketing at Yapı Kredi
Bank and held member positions on the boards of Yapı Kredi Leasing and Yapı Kredi Factoring. After working as CEO of Yapı Kredi
Leasing and Koç Leasing from 1997 to 2003, he served as First Executive Vice President responsible for Corporate and Commercial
Banking at Koçbank and Yapı Kredi Bankası between 2003 and 2009. He joined ABank in August 2009 as Board Member and Credit
Committee Member and has held the position of CEO since February 2010.
17
18
Message from the CEO
Despite the ongoing global economic risk factors and
the tight monetary policies of the Central Bank of
Turkey, ABank managed to outperform the banking
sector in 2012.
growth prevailed particularly in the most
advanced economies.
Turkey saw a significant improvement
in the current account deficit owing to
the monetary policy implemented by
the Central Bank to sustain economic
stability. Meanwhile, a decrease in actual
and expected inflation, a sharp fall in
interest rates, foreign exchange rate
stability and Fitch’s decision to raise
Turkey’s credit rating to investment grade
all contributed to the buoyant optimism
in the domestic markets.
Although 2012 was a
challenging year for the world
economy, ABank achieved its
financial performance targets
and outpaced the Turkish
banking sector.
The Turkish economy and the
banking sector positively stand out in
the global crisis environment.
The expansionary monetary policies
implemented throughout the year by
the central banks of the developed
economies eased the negative outlook
of the global economy as a whole, which
was quite dim at the beginning of 2012.
While the weak expectations for the US
economy turned somewhat positive
due to a slight recovery, the significant
counteractive measures taken in Europe
boosted confidence to some extent.
Despite the modest improvement in the
global risk perception, low economic
In 2012, the Turkish banking sector
sustained growth with a solid capital
structure and high profitability.
Loan growth in the Turkish banking
sector remained at 15% during the year
due to the low level of domestic demand
in line with the targets of the Central
Bank.
The slowdown in lending growth resulted
in increased competition within the
sector especially during the second half
of the year. Despite the pressure of these
developments on profitability, the Turkish
banking sector sustained its strong and
solid position in 2012. Maintaining a
basic capital structure composed of high
quality assets and equities is key in terms
ABANK AT A GLANCE
of the sector’s resilience against external
vulnerabilities.
In 2012, the importance of non-deposit
sources for banks grew in line with the
diversified funding options of the sector.
Compared to 2011, the share of nondeposit sources significantly increased in
the funding of bank loans.
Despite increasing competition
and challenging market conditions,
ABank achieved its performance
targets in 2012.
The Bank’s consolidated balance sheet
grew 23% in 2012 while total assets
reached TL 8 billion at year’s end. ABank
increased profit by 289% to TL 81.3
million while the sector’s profit increased
18% in the reporting year.
The Bank’s interest and non-interest
income continued to increase in 2012.
Non-interest income, a stable income
base, increased 30% compared to the
previous year.
ABank preserved its solid position in
terms of its expenditure ratios in 2012.
The potential of revenues to cover
expenses provided a comfortable
cushion to the Bank for implementing its
growth strategy.
The Bank’s capital adequacy ratio
remained at a comfortable 14.3% as a
result of its sound investment structure
and strong equity base, which reached
TL 601 million on a consolidated basis at
year-end.
Thanks to its solid reputation in
international markets, ABank secured
a 1-year syndicated loan facility in the
amount of US$ 205 million, with the
participation of 20 local and international
financial institutions.
External funds comprise an important
part of ABank’s funding sources. In
2012, the Bank’s share of external funds
within its total funds was 21.6%. Total
deposits, ABank’s primary funding
source, increased 14% and outpaced the
sector’s deposit growth. As of the yearend, the Bank’s total deposits reached
TL 4.2 billion and comprised 53% of total
liabilities.
As a result of its strong performance
in local bond issuances in 2012, ABank
obtained TL 150 million funding as of the
year-end. This amount had risen to TL
300 million at the beginning of 2013.
FINANCIAL TABLES
The Bank’s loan portfolio grew 20% and
totaled TL 5.1 billion in 2012. With a cash
loans to total assets ratio of 65.2%, ABank
ranked among the leading banks in the
sector.
ABank outperformed the sector in
2012.
Despite the ongoing global economic
risk factors and the tight monetary
policies of Turkey’s Central Bank, ABank
managed to outperform the banking
sector in 2012.
Having a high level of flexibility due to
its market position, ABank has adopted
an efficiency based growth strategy to
achieve profitable growth. Even though
rising competition within the sector
adversely impacts funding costs, ABank’s
success in expense management allows
the Bank to control increasing costs.
By transforming and upgrading its
technological and organizational
infrastructure, ABank increased the
number of its active customers by 35%
to 39,500. The Bank also achieved
significant growth in its retail banking
business in 2012.
19
20
Message from the CEO
ABank is committed to sustaining profitable growth with
its team of professionals who have fully embraced the
deep-rooted corporate and business culture of Anadolu
Group.
The Bank continues the on-lending of
the US$ 40 million 5-year loan facility
secured from the International Finance
Corporation (IFC) and the Netherlands
Development Finance Company (FMO)
to support women entrepreneurs.
This credit facility was provided by the
IFC and FMO to ABank as a first of its
kind in Turkey. ABank will continue to
provide support to the country’s female
entrepreneurs within the framework of a
corporate social responsibility project.
In line with its long-term strategy, ABank
plans to further strengthen its position
in the banking sector. In 2013, the Bank
will sustain its successful performance
by expanding the active customer
base, acquiring new customers and
diversifying the loan portfolio and deposit
base. While pursuing this sustainable
growth strategy, the Bank will focus on
differentiating itself with new services
especially in the retail banking segment.
In the medium-term, ABank targets to
establish a strong customer base which
is composed mainly of diversified small
and medium enterprises.
I would like to extend my appreciation
to our clients for their ongoing trust, our
shareholders and our Board of Directors
for their support, and all of my colleagues
for their intensive efforts in achieving our
targets.
ABank is committed to sustaining
profitable growth with its team of
professionals who have fully embraced
the deep-rooted corporate and business
culture of Anadolu Group.
Hamit Aydoğan
CEO
Yours sincerely,
ABANK AT A GLANCE
FINANCIAL TABLES
ABank has continued
to provide support to
the real economy.
With advantageous financial solutions
customized for small and mediumsize enterprises, ABank continued to
provide support to trade and the real
economy, and achieved a significant
rise in revenues thanks to a higher
market share in SME banking.
21
20.2%
INCREASE IN
LOANS
5,144
4,281
2011
2012
IFRS
Consolidated
Hilmi Güneş, Sahray-ı Cedit Branch
dvantage
24
Senior Management
(in alphabetic order)
Hamit Aydoğan, Member of the Board and CEO
Born in 1958, Hamit Aydoğan graduated from Middle East Technical University, Department of Political Sciences and Public
Administration. He joined Yapı Kredi Bank as Inspector in 1981. From 1986 until 1993, he held managerial positions in YKB branches in
various regions. Between 1993 and 1997, he served as Executive Vice President responsible for Corporate Credits Marketing at Yapı Kredi
Bank and held member positions on the boards of Yapı Kredi Leasing and Yapı Kredi Factoring. After working as the CEO of Yapı Kredi
Leasing and Koç Leasing from 1997 to 2003, he served as First Executive Vice President responsible for Corporate and Commercial
Banking at Koçbank and Yapı Kredi Bankası between 2003 and 2009. He joined ABank in August 2009 as Board Member and Credit
Committee Member and has held the position of CEO since February 2010.
A. Tolga Şenefe, EVP, Treasury
Born in 1969, A. Tolga Şenefe graduated from Istanbul University, Faculty of Economics before obtaining a master’s degree from
Marmara University, Department of Accounting and Finance. He started his professional career as Assistant Inspector at the Board
of Inspections of the Istanbul Stock Exchange in 1992. From 1995 to 1997, Mr. Şenefe served as Senior Vice President at Alfa Menkul
Değerler A.Ş. Between 1997 and 2000, he worked as Treasury Manager at Ulusal Bank; he was appointed Deputy General Manager at
Ulusal Yatırım in 2000. From 2002 until 2003, Mr. Şenefe worked as Director at Standard Yatırım Istanbul. Between 2004 and 2006,
he served as General Manager at Ziraat Portfolio Management. Subsequently, he moved on to work as Project Manager at Helix
Management Consultants. From 2007 to 2011, Mr. Şenefe served as Treasury Group Head at Anadolubank A.Ş. He joined ABank in 2011
as Executive Vice President responsible for Treasury.
Cem Şipal, EVP, Financial Control
Born in 1964, Cem Şipal graduated from Istanbul University, Department of Econometrics. He received his executive MBA degree from
Koç University in 1995. Mr. Şipal started his career at Yatırımbank in the Credit Department. In 1991, he joined Koçbank and worked in
the Financial Control Department, where he held various positions at different levels during his 10-year tenure there. He joined ABank in
2001.
Dilek Algan, EVP, Credit Monitoring, Administrative & Legal Follow Up
Born in 1972, Dilek Algan graduated from Ankara University, Faculty of Political Sciences - Economics. She started her banking career
at Dışbank in 1995 where she held various managerial positions until 2003. In 2003, Ms. Algan joined Fortis Bank and served as Vice
President in the Risk Surveillance Unit; later, she managed the Risk Surveillance, Restructuring and Legal Follow-up units between 2003
and 2008. Subsequently, she began work at Finansbank where she served as Senior Vice President responsible for Corporate, SME and
Micro Credits between 2008 and 2011. Ms. Algan joined ABank in 2011 as Executive Vice President responsible for Credit Monitoring,
Administrative & Legal Follow-up.
Işıl Funda Öney Babacan, EVP, Information Technologies.
Born in 1973, Işıl Funda Öney Babacan graduated from Istanbul Technical University, Department of Management Engineering and
received her master’s degree in Industrial Engineering from Boğaziçi University. She started her professional career in 1995 at Strateji
Mori as Researcher, after which she joined Intertech in 1996 as Analyst. Later, Ms. Babacan was appointed Vice President in the Core
Banking Department and Executive Vice President in the Functional Analysis and Project Development Department, respectively. She
joined ABank in September 2012 as the Executive Vice President responsible for Information Technologies.
Murad Büyükkürkçü, EVP, Credit Administration
Born in 1965, Murad Büyükkürkçü graduated from Istanbul University, Department of Business Administration. He later received an
MBA from Istanbul Technical University. In 1991, Mr. Büyükkürkçü began work at Yapı Kredi Bank as Inspector and later held several
positions in various departments. In 2009, he joined ING Bank as Group Director in Commercial Sales. In the same year, he transferred
to Akbank as Head of the SME Loans Department. He joined ABank in January 2012 as Executive Vice President responsible for Credit
Administration.
ABANK AT A GLANCE
FINANCIAL TABLES
Murat Özer, EVP, Human Resources
Born in 1967, Murat Özer graduated from Istanbul University, Faculty of Economics. He started his banking career at Turkish Bank in 1991.
Mr. Özer joined ABank in 1992, where he held several positions in the Treasury Department and was appointed Executive Vice President
in 2004. He became the Executive Vice President in charge of Human Resources in June 2011.
Mutlu Çalışkan, Chief Audit Executive (CAE), Internal Audit
Born in 1969, Mutlu Çalışkan graduated from Galatasaray High School and Istanbul University, Faculty of Economics in 1993. He started
his career as Assistant Inspector at Garanti Bank in 1994. Subsequently, Mr. Çalışkan joined İktisat Bank in 1996, where he served as
Inspector and Manager on the Inspection Board, respectively, between 1998 and 2002. From 2003 until 2005, he worked as a manager
at the Internal Audit Department at ABank. In 2005, he became the Director of the Accounting, Budgeting and Management Control
Department of Renault Mais A.Ş. Mr. Çalışkan returned to ABank in 2008 as Manager in the Internal Control Department. In November
2011, he was appointed Chief Audit Executive in charge of the Internal Audit.
Muzaffer Öztürk, EVP, Corporate and Commercial Banking
Born in 1957, Muzaffer Öztürk graduated from Uludağ University, Bursa, Faculty of Economic and Administrative Sciences. He started
his banking career at Yapı Kredi Bank, Istanbul as Assistant Inspector in 1984 and became the Assistant Vice President of the Inspection
Board in 1991. Mr. Öztürk became Branch Manager from 1993 to 1997 serving at various YKB branches. Between 1997 and 2000, he held
the position of Corporate Banking Coordinator responsible for different groups of branches at the same bank. In October 2000, he was
appointed EVP in charge of Retail and SME Marketing at YKB. He joined ABank in February 2011.
Oğuz Korkmaz, Group Head, Retail Banking
Born in 1969, Oğuz Korkmaz graduated from Marmara University, Department of Public Administration. In 1994, he received his master’s
degree from Université Libres de Bruxelles in EU Studies. In 1996, Mr. Korkmaz started working as Assistant Marketing Manager at Koç
Consumer Finance and Card Services. In 2000, he joined the Retail Banking Department at Oyak Bank as Sales and Marketing Manager.
Between 2003 and 2007, Mr. Korkmaz worked at TEB and BankPozitif as Sales and Marketing Director in Retail Banking. In 2007, he
moved to Anadolubank where he served as Retail Banking Group Director. He joined ABank in September 2012 as Retail Banking Group
Head.
Suat Çetin, EVP, Operations
Born in 1967, Suat Çetin graduated from Middle East Technical University, Department of Political Sciences and Public Administration.
In 1991, he started his professional career at the Turkish Statistical Institute. Mr. Çetin later joined Osmanlı Bankası where he served as
Vice President in the Branch and Treasury Operations Department. In 2002, he briefly worked as Project Leader in the General Manager
Consultancy Department of Akbank. Mr. Çetin then moved on to Koçbank as Vice President in charge of Central Operations. Since 2006,
after the merger of Yapı Kredi Bank and Koçbank, he worked as Banking Operations Group Director at Yapı Kredi Bank. Mr. Çetin joined
ABank in September 2012 as Executive Vice President responsible for Operations Management.
Şakir Sömek, EVP, International Financial Institutions
Born in Cyprus in 1963, Şakir Sömek graduated from University of Wisconsin, River Falls with an undergraduate degree in Business
Administration in 1985 and received his master’s degree in Economics from American University, Washington, DC in 1987. He began
his banking career at Turkish Bank in 1988 as Account Officer. Mr. Sömek then started work at Industrial Bank of Cyprus as Credit
& Marketing Officer in 1990. In 1995, he joined Körfezbank where he held various positions in the Financial Institutions Department.
Mr. Sömek began work at ABank in 1998 as Head of the International Financial Institutions Department and he was promoted to the
Executive Vice President position in 2008.
25
26
Activities in 2012
With its corporate and commercial banking sales team,
which was further strengthened in 2012, ABank focused on
achieving sustainable, well-diversified and efficient growth by
serving customers with a business partnership approach.
In 2012, ABank achieved its
performance objectives and
outperformed the sector.
ABank maintained its steady growth
in 2012. The Bank’s total cash loans
increased 20.2% to TL 5.1 billion.
Consolidated total assets grew 23.3%
over the 2011 figure and amounted to
TL 8 billion. ABank is one of the leading
banks in the sector with a cash loans to
total assets ratio of 65.2%.
ABank sustained its solid capital
structure with shareholders’ equity that
increased 20% to TL 601 million, and
a capital adequacy ratio of 14.3% on a
consolidated basis as of year-end 2012.
The Bank supported its strong growth
strategy with a syndicated loan facility of
US$ 205 million obtained in 2012.
Total deposits currently comprise 52%
of the Bank’s total liabilities and are the
Bank’s primary source of funding; at endof-year, the Bank’s deposits totaled TL 4.1
billion, up 14% over 2011.
In 2012, ABank’s net profit rose 289% on a
consolidated basis to TL 81.3 million.
ABank continues to grow in
corporate and commercial banking.
With 250 customer representatives
serving clients in 66 branch locations in
25 cities by using a solutions-oriented
approach, ABank provides corporate
and commercial banking products to
companies in various sectors that have
annual turnover of over TL 5 million.
In line with its strategic objective of
becoming a specialized bank primarily
focused on SMEs, ABank offers financial
services at world class standards to meet
all of the needs and expectations of its
clients.
ABank serves customers with a
holistic service approach supported
by a complementary product range
to meet all their requirements and
expectations. With this approach, the
Bank takes into consideration all of
the companies throughout the value
chain of its customers. ABank aims to
add value in all phases of customers’
commercial activities by providing
effective and timely solutions including a
variety of deposit, investment and cash
management products. This holistic
approach also represents the core of the
Bank’s success in enhancing relations
with its clientele and establishing
customer loyalty.
ABank focuses on achieving
sustainable growth by maintaining a
well-diversified risk profile.
In 2012, ABank strived to continue
managing risk effectively, by diversifying
the existing risk profile, establishing
long-term business partnerships with
customers and improving the cost/
income ratio. The Bank also works
to achieve sustainable and profitable
growth by acquiring new customers and
increasing product diversity.
ABank’s marketing strategy targets
small and medium size companies. By
increasing its SME penetration rate,
ABank aims to shift its dependence on
a limited number of enterprises and to
distribute risks to a broader client base.
By strengthening the sales teams in
corporate and commercial banking, and
by serving customers with a business
partnership approach, ABank focused on
sustainable, well-diversified and efficient
growth. As a result, the number of the
Bank’s active commercial/corporate
customers rose 25% to 9,812 and its total
loan volume increased 11.4% climbing to
TL 7.1 billion.
ABANK AT A GLANCE
FINANCIAL TABLES
ABank continued
to make
customers smile.
ABank continues to grow by fostering
customer loyalty and showing
appreciation to its clients. With
exceptional products and services
that make each of its customers feel
special, ABank reached the level of 80%
customer satisfaction and once again
became “The Most Appreciated Bank.”
27
58%
INCREASE IN
NUMBER OF
BRANCHES
63
40
2007
2012
Figen Tekin, Levent Branch
ppreciation
30
Activities in 2012
Through a relationship banking approach, the Bank
aims to enhance its retail banking activities by
offering customer-oriented products and services as
well as by allocating quality time to customers.
ABank provides differentiated
financial solutions with varying
terms and characteristics.
ABank meets the long-term funding
needs of specific customer segments
through tailor-made product packages
for the tourism and agricultural sectors as
well as project financing loans to support
energy related projects. Additionally, the
Bank continues to extend project-based
loans to large corporate customers
through international trade finance
facilities.
In 2012, the Bank continued to contribute
to export financing by intermediating
Eximbank loans and allocated US$ 130
million in credit facilities to exporters
as of December 2012. The Bank meets
customer needs in foreign trade
transactions with a diversified product
portfolio designed in line with their
expectations.
ABank also allocates loans from external
resources guaranteed by multilateral
institutions including the World Bank,
International Finance Corporation (IFC)
and European Investment Bank (EIB). In
2012, the Bank provided € 35.8 million
for hydroelectric power plant projects
and US$ 20 million for a business center/
office development through cash and
non-cash credit facilities.
At the end of 2011, ABank received
US$ 40 million in external funding from
the International Finance Corporation
(IFC) and the Netherlands Development
Finance Company (FMO) to finance small
and medium-size enterprises as well
as women entrepreneurs. Through this
facility, SMEs and female entrepreneurs
were provided loans totaling US$ 19.5
million and US$ 14 million, respectively,
by the year-end 2012. The Bank also
continues to provide support to women
entrepreneurs who own or manage small
and medium enterprises.
In the last quarter of 2012, ABank
launched the SME Support Loan,
which offers various advantages in
the daily banking transactions of small
and medium businesses. The amount
of financing support to this segment
through the SME Support Loan product
totaled TL 30 million.
ABank develops cash management
products tailored for customer
needs.
In order to keep the cash flows of
customers within the Bank by fully
meeting all their banking needs,
ABank offers a wide variety of cash
management products and services.
These include check books, salary
payments, bill payments, tax and social
security premium payments, collective
payments and automatic bill payments/
collection systems.
With its experienced cash management
team, ABank develops project-based
DDS (Direct Debit System) products
and tailored solutions to meet the cash
management requirements of customers
by enabling product infrastructure
integration with their accounting
systems.
Technology-based cash management
products such as DDS provide a bridge
between the parent company and its
dealer and supplier network. ABank aims
to help customers reduce their operating
costs and gain cost advantage by
strengthening their collection capabilities.
The total volume of transactions
intermediated by the Bank through DDS
exceeded TL 4.3 billion in 2012.
ABANK AT A GLANCE
FINANCIAL TABLES
In line with the expansion of its branch
network, the Bank also grew its
enterprise banking customer base during
the year.
In 2013, ABank targets expanding its
market share in this segment by further
increasing number of customers and
ensuring a diversified risk profile through
a broad client base. Meanwhile, the
Bank’s plan to further deepen existing
customer relationships will serve to
increase the share of the enterprise
banking segment in the Bank’s total
transaction volume.
ABank moves forward in line with its
profitable growth strategy.
In 2013, ABank’s primary strategy in
corporate and commercial banking will
be to support sustainable profitability
through effective risk management and a
diversified customer portfolio.
Among its prioritized objectives, the
Bank also plans to strengthen its deposit
base, develop new products and sustain
a favorable balance in its asset-liability
structure by exiting unprofitable business
areas.
ABank also aims to enhance its
relationships with other Anadolu Group
companies by further taking advantage
of the existing synergy.
ABank’s market share in retail
banking is growing rapidly.
Following a rapid entry into retail banking
in 2011, ABank continued to expand its
activities in this area in particular by
focusing on both the individual and
enterprise banking segments.
The Bank also targets serving a broader
client base in the coming period after
raising the annual turnover criteria for
enterprise banking customers from TL 5
million to TL 10 million.
31
32
ABank Bonus credit card launched in 2012.
In 2013, ABank plans to continue offering
various advantageous promotional
campaigns and sector packages to
meet the needs of enterprise banking
customers. In 2012, the Bank launched
customer campaigns for the Tourism
Package, Commercial Auto, Capital
Support for SMEs, Year-end Support
and Holiday Support. The Bank plans
to further expand its promotional
campaigns and develop new packages
targeted at the services, food and
stationery sectors in 2013.
ABank targets middle and upper middleincome groups as well as professionals
for its individual banking business line.
Through a relationship banking
approach, the Bank aims to enhance
its retail banking activities by offering
customer-oriented products and services
as well as by allocating quality time to
customers.
To achieve this objective, the Bank
increased the portfolio manager staff
in the branches, the primary point of
contact with customers, to 145, up 20%
from 2011.
As a result of more intensive marketing
activities in 2012, ABank’s active
customer base in individual banking and
enterprise banking increased 135% and
195%, respectively. Meanwhile, the total
number of active customers in the retail
banking business line exceeded 30,800,
up 9,450 from the previous year.
The Bank’s retail loan portfolio grew
rapidly and consistently in line with the
expanding customer base. The Bank’s
individual and enterprise loans recorded
about a twofold increase compared to
the previous year.
Thanks to various campaigns to
promote time deposit accounts, the
Bank’s customer deposits rose 14% and
amounted to TL 4.1 billion in 2012.
In addition to the advantages provided
by the Bonus brand, ABank offers
additional benefits to cardholders such
as assistance and support services,
discounted airport transportation and
private foreign travel health insurance for
platinum cardholders.
The Bank plans to reach a broader
customer base by offering the ABank
Bonus commercial credit card product
in 2013.
In 2013, ABank will also roll out a POS
product for its enterprise and commercial
banking clients.
ABank Bonus credit card launched in
2012.
To help achieve its retailing banking
growth targets, ABank launched Bonus
credit cards in 2012.
ABank increases its targets in retail
banking.
ABank targets increasing customer
satisfaction and loyalty as well as new
customer acquisition; as a result, the
Bank will strengthen its market position
by improving service quality, increasing
product diversification and by enhancing
distribution channels.
Comprehensive information related to
the ABank Bonus Card including product
information, program partners and
promotional campaigns are provided to
customers at www.abankbonus.com.
The contribution of retail banking to the
Bank’s balance sheet and profitability is
increasing thanks to the intensive efforts
in this business line during the reporting
year.
ABank continued
to accomplish new
successes with the
efforts of its employees.
ABank places great importance on
employee satisfaction as well as
customer satisfaction. The Bank
demonstrates an outstanding
performance owing to its employees
who are among the best in the sector;
they work in accord with each other
and with in the corporate culture.
1.230
1.185
2011
2012
4%
INCREASE IN
NUMBER OF
EMPLOYEES
Simden Hereke, Corporate/Commercial Banking Sales
ccord
36
Activities in 2012
ABank’s primary strategy is to establish long-term
relationships based on mutual benefit with leading
global banks, export credit agencies and supranational
institutions through its relationship and communication
focused approach.
In 2012, ABank launched three new
deposit products in retail banking:
• The Gold Account enables customers
to make money transfers through time
and demand deposit accounts.
• The Withdrawable Deposit offers
customers the opportunity to withdraw
at most three times and 30% of the
outstanding balance of the account
within the maturity period.
• The Happy Money Account, a cash
management product, invests
customers’ outstanding TL balances in
a liquid fund, overnight repo or foreign
exchange account while payments
linked to the account can also be
made automatically.
The Gold Account was included in the
product range in October 2012, and
reached a total of 66.4 kg, equivalent to
TL 6.3 million.
Due to the positive effects of the
campaign initiated in May, the volume of
housing loans more than doubled and
reached TL 125.1 million at end-2012, up
from TL 56.8 million a year earlier.
Undertaking an intensive promotional
campaign period in individual loans
particularly during the last quarter
of the year, the Bank organized eight
campaigns for consumer loans and two
for auto loans in addition to its housing
loan drive.
In 2013, the Bank’s objective is to grow in
loan and deposit products in particular.
The new investment products the Bank
plans to offer in 2013 include: Depofund,
which includes both deposit and B-type
liquid fund; One-year Time Deposit with
interim payments; physical purchase
and sale of gold; and Gold Account with
features such as gold loans.
Loans for urban renewal, 2B loans, TOKİ
housing project loans and boat loans will
be included in the Bank’s lending product
range in 2013.
ABank aims to expand its portfolio
management staff by 79 personnel, to a
total of 224 employees, in 2013 to achieve
the Bank’s growth targets.
ABank maintains its competitive
edge with a rapid and efficient credit
allocation process.
In line with the Bank’s objective to
focus on SMEs, the driving force of
the Turkish economy, and to provide
them with rapid and customer-oriented
services, ABank restructured the Credit
Allocation Group into two separate units:
Retail and Commercial/Corporate. The
Retail Credit Allocation Unit will assess
credit applications of individuals and
companies with annual turnover of less
than TL 5 million while the Commercial/
Corporate Unit will assess company
applicants with annual turnover of more
than TL 5 million.
ABank joined the Bonus Card Platform in
2012 and the Bank’s Retail Allocation Unit
approves credit card limits. Thanks to its
rapid and effective process management,
the Unit finalizes limit approvals of
credit card applications within the same
business day.
Through the organizational changes
made to further strengthen coordination
between the Credit Allocation Group
and the branches, ABank structured
allocation teams according to the
geographic location of the branches. As
a result of the restructuring, the Bank
accelerated its credit allocation processes
despite the expanding branch network.
ABANK AT A GLANCE
ABank strictly adheres to
international risk management
principles as one of the fundamental
components of its corporate
operations.
ABank has adopted international risk
management principles as one of
the fundamental components of its
corporate operations, in addition to
the legal requirements of the Banking
Regulation and Supervision Agency and
the risk management criteria set forth in
the Basel II framework.
Ensuring an effective distribution of
tasks and clearly separating the related
responsibilities, the risk management
function aims to prevent conflict of
interests among the managerial and
operational units including the Board of
Directors and the senior management,
clients and other shareholders.
The credit risks that the Bank is subject
to, both on and off the balance sheet,
are monitored and managed exclusively
and on a portfolio basis through an
IT-supported effective risk management
model that makes use of current
international methodologies.
ABank considers risk as an instrument
to reach potential return and follows a
risk-based business strategy, taking the
risks that are adjusted with potential
returns. For the Bank, risk management
is not limited to merely a risk control
function; instead, it is a strategic function
that works to support the achievement
of the Bank’s business targets. As such,
risk management, which includes
identification, measurement, monitoring
and mitigation of risks, is fully integrated
into strategic, tactical and operational
decision making processes of the Bank.
In accordance with legal requirements
and best global practices, ABank
continuously enhances its risk
management practices by implementing
new applications to its existing capacity.
• In 2012, the Bank replaced its existing
risk model, Value at Risk (VaR), with a
new model that is generally accepted
in Turkey, and thus increased the
efficiency of its risk management
implementations in terms of both
product diversity and functionality.
• The Bank reviewed its existing rating
systems and the new commercial/
corporate model was put into use
throughout the Bank during the year.
• The Bank purchased a new
software application to ensure more
efficient asset-liability and liquidity
management. Once installation is
complete, the application will increase
the efficiency in both the decision
making and risk management
processes.
Since Basel II criteria has become a
legal requirement as of July 2012 in
Turkey, the country’s banks began to
measure, report and manage their capital
adequacy requirements in accordance
with the new legislative framework.
According to the new calculation
method, ABank’s capital adequacy ratio
increased approximately 70 basis points.
In 2013, ABank will continue its efforts to
improve the existing risk management
systems and processes as well as to
design new models and methodologies
to meet future requirements as they
arise. Accordingly, the Bank will improve
the balance between its activities and
the relative risks taken, use and return on
capital as well as risk-based management
competency.
ABank has a solid ratings profile in
the Turkish banking sector.
The international agency Fitch Ratings
affirmed ABank’s credit ratings as follows
in its report dated July 24, 2012. Fitch
Ratings assessed the Bank’s long-term
outlook as “stable.”
FINANCIAL TABLES
ABank Rating Notes
Long Term Local Currency Rating
Long Term Foreign Currency
Rating
Short Term Local Currency Rating
Short Term Foreign Currency
Rating
Viability Rating
National Long Term Rating
BB
BB
B
B
bb
AA
ABank is a leading market player
in fund management and treasury
transactions.
With its market expertise and experience,
ABank is actively involved in the fixed
income securities and money markets.
In addition, the Bank aims to be a major
player in derivatives transactions, which
has gradually gained importance in
Turkey’s financial markets, with its rapidly
growing expertise in this area.
Rapid growth in treasury
transactions volume and profit in
2012
ABank’s Treasury Department performed
highly effective TL and FX liquidity
management during and after the global
financial crisis. The Bank demonstrated
another outstanding performance in
2012 thanks to its FX and fixed-income
securities strategies, which are based on
expertise in maintaining the risk-return
balance.
In 2012, ABank ranked second in terms
of its transaction volume and fourth
including over-the-counter transactions
on the ISE Bonds and Bills Market.
The growth of the Bank’s derivatives
transactions in 2012 also confirms its
rising status in this nascent market.
Effective fund management through
function based specialization
ABank’s Treasury Department is
comprised of the Treasury Marketing
Unit, Asset/Liability Management Unit,
Trading Unit and Economic Research
Unit.
37
38
Activities in 2012
The Asset/Liability Management Unit
is responsible for the management of
the Bank’s assets and liabilities positions
in TL and FX and contributes to the
profitability of the Bank via management
of liquidity and balance sheet risks. In
2012, the Unit also contributed to the
enhancement of the deposit structure
through its pricing policies. During the
year, the use of interest rate derivatives
was increased to control balance sheet
risks. The Asset/Liability Management
Unit takes advantage of all opportunities
to reduce costs by actively participating
in the issuance of debt instruments. As
a result of the bond issues, the Unit was
able to obtain longer maturities and wider
diversification in its debt structure.
Upon completion of the Asset/Liability
Management Module, which started an
integration process in 2012, the Bank’s
risk management quality will be further
enhanced in 2013.
Responsible for trading TL, fixed income
securities, FX and derivatives, the Trading
Unit assumes an important role in
strengthening the position of the Bank
in capital markets. Ensuring competitive
pricing, the Unit also supports the
Treasury Marketing Department
particularly in international transactions.
Providing strong support to the
profitability of the Bank with its efforts in
2012, the Unit took its place among the
significant players in the Turkish capital
markets.
Thanks to its competitive pricing
policy during the year, the Trading Unit
recorded an outstanding increase in the
transaction volume with domestic and
international clients.
The Economic Research Unit provides
information to the Treasury Department,
senior management and the Bank’s
customers on a regular basis with its
reports on the trends and risks in the
markets and the overall economy.
Increasing share and importance of
derivatives
The demand for derivative products
is rapidly increasing in Turkey, as in
the rest of the world, due to changing
risk perceptions, the real economy’s
requirements and the rapid development
of the country’s financial markets. In
addition, the rising foreign trade volume
with the Middle East is expected to also
increase the demand for derivatives
from those trading with this region.
Recently, derivative products have been
increasingly used to avoid balance sheet
risks within the framework of asset-liability
management while exotic financial
products, which are more effective and
sophisticated instruments, have gained
importance as well.
Offering services and solutions with
high added value in derivatives markets,
ABank’s Treasury Marketing Unit
intensively undertakes efforts to protect
its customers against various risks.
As structured products are being more
frequently used in Turkish capital markets,
ABank plans to establish a Structured
Products Desk under the Treasury Unit
in 2013. As a result, the Unit will provide
tailored solutions to meet the needs of
customers with more competitive pricing
options.
Strong support to branches in
providing treasury products to
clients
ABank aims to be one of the leading and
strong players of the derivatives market
both for its clients and other market
participants.
To this end, the Bank strengthened
the Treasury Marketing Unit’s team
in 2012. Representatives from the
Unit visited the Bank’s customers and
branches throughout the year to inform
them about the use and advantages
of derivative products as well as to
discuss recent market developments.
Staff members responded to the
specific financing needs of customers
by developing a range of tailored
products. Due to the close cooperation
and synergy with branches, the Bank
attracted new clients, particularly in the
SME segment, and achieved significant
success in the sale of derivative products.
In 2013, the Treasury Marketing Unit
plans to further enhance its activities and
expand the range of services offered to
clients.
ABank calculates market risk
according to the Value at Risk (VaR)
method.
ABank calculates FX, interest rate and
liquidity risks according to the Value
at Risk (VaR) method by meticulously
analyzing, studying and using Turkish
capital markets data. This model allows
the Bank to make sensitivity analyses
for various money market products
including loans, coupon and discount
bonds, forward FX buying and selling
transactions, forward interest transactions
and interbank transactions. The risk
ABANK AT A GLANCE
management software program, which is
approved by the BRSA, produces detailed
reports with respect to the positions
carried by customers and allows Bank
management to continuously monitor
the balance sheet in detail in terms of
interest, maturity and liquidity.
At the Bank, the Board of Directors
determines all purchase/sale and
position limits. Predetermined risk
limits as well as profit/loss limits are
continuously monitored during the day.
Upon completion of the Asset/Liability
Management Module, the effectiveness
of risk management will be further
enhanced in 2013.
With its upgraded technological
infrastructure, ABank moves
confidently toward achieving its
objectives.
The primary objective of ABank’s
Information Technologies Department is
to implement customer-focused projects
that create product and channel diversity,
increase efficiency and allow effective
revenue/cost management.
At the beginning of 2012, ABank’s
Information Technologies Department
put into operation the InterNext banking
package, which is compliant with the
Bank’s strategy, meets legal requirements
and features the latest technology. With
this advanced banking application,
the Bank upgraded the platforms in its
infrastructure with more flexible and
up-to-date technology and enhanced
information security.
Thanks to the systems related flexibility
introduced with the InterNext Banking
Platform, the Bank adapts to new
technological developments much more
rapidly.
In 2013, ABank plans to deploy new
applications through the new technology
platform in order to support customeroriented banking efforts, expand product
and channel diversity, and contribute to
effective process and risk management.
Maximizing efficiency through
central operations
In order to increase efficiency and
better manage operational risk, ABank
centralized all operations except those
transactions that should be carried out
at the branch level. As a result, the Bank
further improved the customer focus
and service quality provision of branch
employees.
After clearly defining the operational
transactions of the sales units at the
branch level, the Bank transferred
these duties to the operational units.
This shift enables branches to achieve
the highest level of efficiency in their
sales activities and transforms branch
locations into more effective distribution
channels. Meanwhile, ABank branch
operation teams are skilled in sales of
all of the relevant products. Service
level agreements are made between
business and operational units; duration
of services are also measured and shared
with relevant units to provide clients with
standardized services.
ABank serves customers through all
its distribution channels. Customers
are supported 7/24 through telephone
banking, internet banking and the ATM
network.
ABank provides employees with inhouse and outsourced regular training
opportunities to maintain the highest
level of quality in human capital and to
FINANCIAL TABLES
offer the best quality services to clients.
As a result of these efforts, the Bank’s
accuracy rate in operational transactions
was more than 99% in 2012.
During the year, ABank offered its clients
the Bonus Card, the most popular credit
card in Turkey. Meanwhile, ABank debit
cards can be used at all points with Visa/
Master logo both in Turkey and abroad.
Corporate Communications
With responsibility for all communication
activities including general publicity of
the Bank and its subsidiaries in addition
to brand positioning, the Corporate
Communications Department carries
out advertising and media relations
to enhance the brand recognition of
ABank. During the last quarter of 2012,
the Department released the Bank’s
advertisement film clip for broadcast for
the first time on national and theme TV
channels.
Supporting in-house communication
as well, the Corporate Communications
Department organizes social activities
under the roof of AClub to increase
the motivation and loyalty of Bank
employees. AClub is a social club
established to facilitate internal
communication throughout ABank and
its subsidiaries.
Given that individuals are often happiest
when engaging in their hobbies, AClub
also helps employees who work for
“Happy Banking” feel happy and special
themselves. AClub includes various clubs
and social activity groups for music,
dance, theatre, photography, cooking,
wine tasting, among others.
39
40
International Financial Institutions
A relationship and communication focused approach is key to
ABank’s success in international financial markets.
Establishing long lasting relations
based on mutual benefits
ABank’s primary strategy is to establish
long-term relationships based on mutual
benefits with leading global banks,
export credit agencies and supranational
institutions through its relationship and
communication focused approach.
The International Financial Institutions
Department promotes the Bank to its
correspondent network, credit rating
agencies and supranational institutions
and undertakes initiatives to expand the
Bank’s credit facilities and to diversify its
products, services and solutions.
In 2012, the Department represented
the Bank at high profile international
events and meetings by focusing on
strengthening ABank’s brand recognition,
vision and strategy internationally. The
Department conducted its activities in
line with the targets of increasing the
product range especially in foreign trade,
expanding the correspondent network
and securing new borrowing facilities.
The International Financial Institutions
Department also supports and
intermediates the activities of the
Treasury Department to carry out
correspondent relations based on the
principle of mutual benefit in an efficient
and healthy manner.
ABank continued its international
achievements in 2012.
In 2012, ABank was once again presented
with the Outstanding Performance
Award by Citibank in recognition of
its regular and error-free overseas
payments.
ABank’s active correspondent
network expanded to 170 banks.
Owing to the Department’s intensive
efforts, ABank broadened its
existing correspondent network and
strenghtened its solid relationships with
correspondent banks in 2012. In parallel
with developments in the global financial
markets and customer requirements and
demands, ABank’s active correspondent
network continued to expand with 30
new banks and reached a network of 170
institutions by the year-end.
ABank’s successful performance in
international banking is one of the
Bank’s core competencies and a key
component of its sound reputation. The
Bank enjoys strong brand recognition
and credibility in international markets
thanks to its robust financial structure
and its place under the umbrella of such
a well-respected shareholder as the
Anadolu Group.
The increasing credibility of Turkey in
international markets in addition to the
Bank’s strong performance enabled
ABank to expand its external borrowing
capacity during the year. As a result, 2012
was a successful year especially in terms
of bilateral borrowing for the Bank.
Therefore, ABank has external credit
facilities established by the world’s
leading banks and financial institutions
at advantageous terms. Solid and
deep relationships with international
financial institutions support the Bank’s
competitive pricing policy and thus
reinforce its market position.
ABANK AT A GLANCE
FINANCIAL TABLES
2
1
3
4
5
6
7
1. Aylin Tayıncı 2. Barış Nerezoğlu 3. Ezgi Demiray 4. Erol Bakkalbaşı 5. İrem Gürkan 6. Şakir Sömek 7. Ahmet Kınalısoy
Another successful year in foreign
trade financing
ABank provides flexible and rapid
solutions to the requirements of
international trade customers with an
experienced staff, enhanced operational
infrastructure, effective correspondent
network and a customer-oriented
approach. The Bank is an efficient
and primary business partner of its
customers in their international trade
transactions, not only with the most
advanced economies, but also with
relatively risky countries and emerging
markets.
ABank improved the costs and the
maturity of its funding portfolio by
diversifying its external funding base in
2012. In May, the Bank secured a US$ 205
million equivalent dual currency tranche
syndicated loan with the participation of
20 banks from 11 different countries to
intermediate in financing exports. The
facility was comprised of two tranches of
€ 123.5 million and US$ 42.5 million.
Obtained in a challenging global
economic environment, this loan facility
is quite significant in terms of confirming
the confidence of leading and highly
reputable international banks in ABank.
ABank was also included in the IFC’s
Global Trade Finance Program with the
agreement signed in 2011. Pursuant
to the Confirming Bank Agreement
of the program, IFC undertakes the
risk of the issuing bank and ABank is
provided guarantee for its foreign trade
transactions issued by the banks on
IFC’s list of “Issuing Banks.” In January
2012, ABank signed an Issuance Bank
Agreement with IFC and thus expanded
the foreign trade transaction potential
with the banks on IFC’s “Issuing Banks”
list.
The total volume of international trade
transactions intermediated by ABank
reached US$ 1.9 billion in 2012. Thanks
to its high credibility in international
markets, ABank takes advantage
of providing competitive pricing to
its customers in their foreign trade
transactions.
ABank plans to focus on bond
issuance in international capital
markets in 2013.
In the coming year, due to Turkey’s
increasing credibility in international
markets, ABank plans to rapidly move
forward in line with its growth strategy.
The Bank targets sustaining its solid
performance in international markets
by further strengthening its credibility,
increasing and diversifying borrowing
options, raising its profile and broadening
the correspondent network.
ABank also plans to further enhance
its strong relations with supranational
institutions in 2013 by including new
banks/institutions to already established
relationships. The new borrowing
options in international capital markets,
which recently Turkish banks benefited
through external bond issues, are closely
monitored by ABank. In the coming
period, the Bank plans to enter this arena.
41
42
Market Position
ABank ranked fifth in terms of the securities/total assets ratio.
As of December 31, 2012, ABank provides
services primarily in commercial/SME
banking with 63 branches and 1,230
employees.
ABank:
• Ranked fifth in terms of the securities/
total assets ratio,
• Ranked third in terms of the cash+noncash loans/branches ratio,
• Ranked third in terms of net profit
increase,
• Increased cash loans 17.1% compared
to the 9.6% average of the 20 banks in
the sector,
• Ranked 11th in terms of the
expenditures to income ratio while
among the immediate peer group the
Bank ranked second,
according to BRSA results for the ratios
of loans, deposits and total assets
calculated on a consolidated basis as
of September 30, 2012, for 20 private
sector deposit banks and public banks,
excluding private sector banks with only
one branch.
All these results once more clearly
demonstrate that ABank left behind
another successful year.
ABANK AT A GLANCE
FINANCIAL TABLES
Research and Development Activities
At the beginning of 2012, ABank’s Information Technologies
Department put into operation the InterNext banking
package, which is compliant with the Bank’s strategy and legal
regulations as well as equipped with the latest technology.
Focusing on corporate/commercial and
retail banking, ABank offers the best
services to its customers by developing
new products in line with evolving
preferences within the sector as well
as changing conditions in the overall
economy.
When the Bank’s marketing units make
new product launch requests, relevant
departments in the General Directorate
evaluate the proposed offerings in
terms of legal compliance. Following
the approval and registration of the new
product, the Bank’s IT infrastructure
is modified to accommodate its
requirements. The Bank places great
importance on informing customers
about the risks, if any, features, results
and tax issues of the new offerings.
In 2012, the Bank launched customer
campaigns for the Tourism Package,
Commercial Auto, Capital Support for
SMEs, Year-end Support, and Holiday
Support. The Bank plans to further
expand its promotional campaigns and
develop new packages targeted at the
services, food and stationery sectors in
2013.
In line with its retail banking growth
targets, the Bank offered credit cards with
“Bonus” features to its customers. ABank
Bonus Card was initially introduced to
ABank employees in June 2012 and then
rolled out to all customers in September.
Comprehensive information related to
the ABank Bonus Card including product
information, program partners and
promotional campaigns are provided to
customers at www.abankbonus.com.
The Bank offered three new deposit
account products, Gold Account,
Withdrawable Deposit and Happy Money
Account, to retail banking customers in
2012.
Within ABank’s corporate and
commercial banking business line,
small and medium businesses received
financing support with the SME Support
Loan introduced during the last quarter
of 2012.
At the beginning of 2012, ABank’s
Information Technologies Department
put into operation the InterNext banking
package, which is compliant with the
Bank’s strategy and legal regulations
as well as equipped with the latest
technology. With this advanced banking
application, the Bank upgraded the
platforms in its infrastructure with more
flexible and up-to-date technology and
enhanced information security.
43
44
Corporate Governance
ABank’s management believes that an
effective corporate governance system,
within an individual company and across
an economy as a whole, helps provide
the confidence necessary for the proper
functioning of a market economy.
Therefore, the set of relationships among
the Bank’s management, its board, its
shareholders and other stakeholders has
been structured in line with the Principles
of Corporate Governance set out by the
Banking Regulation and Supervision
Agency of Turkey (BRSA) and the Turkish
Capital Market Board (CMB).
ABank is committed to implementing
accepted standards of corporate
governance. Accordingly, all management
procedures and practices depend on
four pillars of corporate governance; i)
transparency, ii) Equality, iii) Responsibility
and iv) Accountability. With the exception
of information deemed to contain trade
secrets and is not yet available to the
public, ABank discloses information
about the Bank, with or without financial
content, in an accurate, thorough, rational,
interpretable and accessible manner. In
compliance with legal and regulatory
requirements, ABank communicates
information in a timely, reliable, consistent,
and orderly fashion and distributes such
information to the investment community.
Comprehensive information on ABank
can also be accessed through its regularly
updated website (www.abank.com.tr).
The Accounting and Finance Group
and the Compliance Department are
responsible for procedural actions
regarding investors (Capital Increases,
AGM, etc), as well as for duly informing
the public. Questions forwarded to the
management by investors, except those
regarding proprietary information, are
answered immediately and appropriately.
The Annual General Meeting (AGM) notice
is provided via the media and internet,
meeting all of the requirements stipulated
by the CMB and related regulations.
All shareholders are invited to attend
the AGM. When the Board of Directors
decides on the date of the AGM, the
information is immediately communicated
to the CMB and the Istanbul Stock
Exchange (ISE). Shareholders may apply
to attend the AGM. Information and
guidance about procedures and voting
may be obtained from ABank’s branches,
Head Office and its internet website.
According the new obligatory process
determined by the CMB, ABank’s AGM
was held on-line (“E-Genel Kurul”) for the
first time in 2012. There are no privileged
voting rights stated in the Articles of
Association. No subsidiary owns shares in
the Bank. It is possible to vote by proxy.
The processes and policies of ABank’s
management structure are designed
to comply with the legal and regulatory
framework and to provide clarity and
transparency in decision-making and
accountability. The Board of Directors
has ten members, five of whom are
independent. The Board of Directors
formulates ABank’s vision, mission, and
short and long-term strategic objectives.
The Board meets at least twice a month,
where the Board of Directors measures
the Bank’s progress against its strategic
objectives and evaluates performance.
The annual budget of the Bank and its
strategic plan are approved by the Board
of Directors, which also follows up the
budget and its actual implementation,
receives information about variations from
the budget, and follows up its decisions.
The Board of Directors tracks strategic
objectives, budget targets, and actual
figures through internal and external audit
systems. The Board also monitors various
financial and non-financial indicators on a
particular customer, branch, business unit,
or general basis. The Board of Internal
Auditors is responsible for submitting
internal audit reports directly to the Board
of Directors.
ABANK AT A GLANCE
In compliance with Banking Law, ABank
has established a Risk Committee.
The Bank’s Board members play an
important role in the management of
the Bank’s risk exposure by developing
strategies, policies, limit systems, and
procedures through the activities of the
Risk Committee. The Risk Committee
is headed by an independent Board
member. An independent Board member
also heads the Audit Committee of the
Board, established in 2004 and bearing
the responsibility of ensuring the accuracy
of financial information provided to all
stakeholders.
The Corporate Governance Committee
was established in 2005 and is also
headed by an independent Board
member. The Committee monitors
compliance. Finally the Pre-diagnosis and
Management of Risks Committee was
established in 2012 and is headed by an
independent Board member.
The ultimate controlling shareholders
of the Bank are announced in annual
reports and on the Bank’s internet website.
ABank strives to maintain the highest
standards by providing guidance to
all its employees; as part of this effort,
employees are guided and educated to
conduct themselves within the standards
of professional and ethical conduct. The
ethical principles of ABank has been
revised in 2011 in line with the Ethical Code
of the Turkish Banks Association and
approved by ABank’s Board of Directors
on 01.08.2011 as “Instructions on Ethical
Principles and Working Regulations”.
The principles are announced in brief to
the public on ABank’s website. The top
management of the Bank ensures that
all the employees and managers comply
with the rules set by the ethical principles
of ABank. All applications regarding career
planning, professional training, disciplinary
rules, ethical codes, fringe benefits, and
all other rights and employee-related
issues are available to all staff on a closed
circuit corporate portal, or “Intranet.”
The Intranet has also been set up to
provide information to employees; all
announcements have been transferred
from a paper environment to an
electronic site. In addition to cost cutting
and efficient communications, the intranet
aims to underscore the importance of a
common corporate culture.
ABank’s Board members, managers of
all levels and employees are in a position
to obtain insider information. ABank
restricts those individuals in a position
to obtain insider information from
trading its equity shares. ABank places
great emphasis on the management of
relations with the Bank’s stakeholders.
Not only shareholders, but also potential
investors, the public, regulatory bodies,
customers, suppliers, employees and
others are defined as stakeholders.
Relations with customers and suppliers
are carried out within the framework
of ethical rules and in accordance with
written procedures. All employees are
aware that the most important means of
creating an advantage over competitors is
to provide the best service to customers
and act accordingly. Employees endeavor
to solve any customer problems, provided
that they fall within the confines of general
principles and the Bank’s procedures,
and take measures and exert every effort
to prevent recurrence. The Bank has a
Customer Complaints Division dedicated
to customer relations, where all customer
complaints are analyzed thoroughly and
immediately by this department and
resolved appropriately. Suppliers are
evaluated by the Purchase Department.
ABank seeks to maximize its employees’
competencies, efficiency, and satisfaction
through its performance evaluation
and career planning system. The Bank
has a transparent and fair performance
management system and reward
system which encourages and supports
high performance. In accordance with
article 6 of the “Regulation on Corporate
Governance Principles of the Banks”, a
FINANCIAL TABLES
new committee has been established on
19.09.2011 for the purpose of monitoring
and auditing the Bank’s payroll practices
on behalf of the Board of Directors and
two of the Bank’s Board Members have
been assigned as the members of the
new committee. The committee conducts
its activities in line with BRSA’s “Regulation
on Corporate Governance Principles”
which has been published in the Official
Gazette dated 01.11.2006 number 26333.
Participation in management is always
encouraged; the personal opinions of the
staff on improvements to daily workload
are collected through an evaluation
system that is analyzed carefully. The
Human Resources Unit is organized
in conformity with the structures,
requirements, and expectations of the
other business units so as to support
these units on all human resources issues.
No complaints concerning discrimination
have been received from employees.
ABank is committed to the development
of our society. The Bank’s donation
policy is defined in the Bank’s Articles of
Association.
The Anadolu Foundation was established
30 years ago and is engaged primarily
in education, health, the arts, and sport; it
has completed a wide range of projects,
including hospitals, health centers,
schools, dormitory buildings, and sport
complexes. While these have been
donated to the state, free scholarships are
granted to competent students in need of
financial support. In 2005, the foundation
completed the non-profit Anadolu
Medical Center. All income generated
from this contemporary health center
will be channeled to meet education and
research expenditures. At least 10% of the
patients at the Anadolu Medical Center
are treated free of charge. The Anadolu
Medical Center provides seminars and
organizes special programs to spread
public awareness of free checkups, patient
education programs, first aid courses, and
protective medication.
45
46
Information on Human Resources
Implementations
ABank usually fills its vacancies at the
managerial level internally. All horizontal
and vertical career opportunities arising
within the Bank are announced to the
employees first through the intranet
portal. With the Vacant Positions Model,
Bank employees have the opportunity
to map out their own future career plans
and work toward their own personal
preferences. Meanwhile, successful
employees who demonstrate an
outstanding performance and produce
significant added value can be promoted
up to the highest positions within the
organization.
Job applications can be submitted
through the Bank’s website, by e-mail or
by fax. All applications are included in
the Bank’s human resources database
and database entries are retained for
one year. In the event of any additional
staffing requirement beyond the Bank’s
annual labor force plan or in case of any
vacant positions, candidates are selected
from this database and those who have
the required credentials are invited for an
interview.
The Bank recruits and trains English
speaking university graduates from
economics, business administration and
engineering departments after a series
of tests and interviews. Following three
months of basic banking training, the
recruits are assigned to the respective
departments and branches. Placing great
importance on career management, the
Bank aims to ensure the continuity of
its human resources via Career Training
programs. Additionally, ABank organizes
“Management Trainee” programs in order
to train the managers of the future.
Promotion Management and
Premium System
Promotion management at ABank is
based on the performance management
system. Aimed at ensuring continuous
development, performance management
is an open system based on concrete
and measurable targets. The employee’s
performance in reaching each of the
targets set out at the beginning of the
year is evaluated together with his or
her competencies. The assessment
results, which are shared with the
employee, are used as input for career
planning and promotion decisions.
The Personnel Committee makes
the promotion decisions in line with
the performance evaluation results.
Determined by considering the Bank’s
overall performance together with that
of individual employees, each year more
ABank personnel are paid bonusses.
ABank’s human resources related
activities in 2012 included:
• Conducted competency
measurements for all positions in the
Bank.
• Completed job assessment work for all
units in the Bank.
• Launched the ABank HR Facebook
Page to provide information on human
resources activities and open positions,
expand the candidate pool, raise the
Bank’s profile and increase interaction
on social media.
• Visited 35 branches and four
departments in order to increase
employee motivation and enhance
corporate communications.
• Held training programs on a job
function basis for all branch personnel
in conjunction with the transformation
of its main banking system; 572
employees participated in these
training sessions that lasted for 48
days, and a total of 7,966 hours of
training was provided.
• Conducted total training of 46,386
hours with total number of participants
of 3,585 in 2012, representing an
average of 37 hours per employee
over the year.
ABANK AT A GLANCE
FINANCIAL TABLES
Human Resources Statistics
Number of Employees
2010
2011
2012
Head Office
435
452
483
Branches
651
733
747
TOTAL
1,086
1,185
1,230
Gender and Age
2010
2011
2012
Male (%)
53
52
52
Female (%)
47
48
48
Average Age
34
35
35
2010
2011
2012
28
25
22
High School
188
186
179
University
794
857
898
76
114
131
443
471
460
2010
2011
2012
5.0
5.7
5.6
Education
Primary School
Post-graduate
Proficiency in a Foreign Language
Average Seniority
47
48
Organizational Structure
ABank’s Board of Directors determines
the organizational structure of the Bank
and any changes in the organization.
The existing organizational structure was
formed pursuant to the resolution of the
Board of Directors numbered 15/D and
dated June 25, 2012.
In this organizational structure and as
required by law, the departments in the
Head Office are separated into two: (1)
departments under the roof of Internal
Systems and (2) executive units directly
reporting to the CEO. Ten Executive Vice
Presidents report to the CEO. The Legal
Department also directly reports to the
CEO.
The Legislation and Compliance,
Audit Board, Internal Control, and Risk
Management, units under Internal
Systems directly report to the Board
of Directors through the committees
constituted within the Board.
Changes made in the Bank’s
organizational structure in 2012 are
reported below on the basis of the
business groups reporting to the Board of
Directors and the CEO.
Within the structure of the Board of
Directors,
• The Committee of Early Detection and
Identification of Risk was established
while the duties and responsibilities
of the Nomination Committee
were assumed by the Corporate
Governance Committee.
Within the structure of the
Operations Group,
• The Retail Banking Operations
Department, which was previously
working under the Operations Group,
was restructured as a unit under
the Corporate/Commercial Banking
Operations Department.
• Following the integration of the Retail
Banking Operations Department, the
name of the Corporate/Commercial
Banking Operations Department was
changed as the Central Operations
Department.
• The management of the transportation
of cash assets was transferred from the
Treasury Operations Department to
the Administrative Affairs Department.
ABANK AT A GLANCE
FINANCIAL TABLES
Risk Management Policies
Credit Risk
Credit risk is defined as the potential loss
arising from a borrower’s inability to meet
its contractual financial obligations to the
Bank. Credit risk is of the highest concern
for the Bank and it is vitally important to
manage it appropriately. Therefore, credit risk
management policies were set up to ensure
the independence and integrity of the risk
evaluation practices. Another purpose of
these policies and procedures is to ensure
that all personnel who are involved in the
decision making process share the same
views in similar matters and reach similar
actions, if necessary. All credit risks, to which
the Bank is exposed, either on- or offbalance sheet, are monitored and managed
individually on a portfolio basis. In order to
maintain its quality, the Bank’s credit portfolio
is analyzed on a regular basis and reported
in terms of sectors, exposure, collateral
structure, loan size, rating and other various
aspects.
Customer selection and monitoring of the
credit ratings of customers are performed
by expert credit teams with the use of
internal rating systems. The rating systems
are continuously reviewed and monitored
for their performance independently by
the Risk Management Department. The
Bank intensively pursues efforts to improve
the rating systems and to design more
successful statistical models for arising
requirements in order to comply with Basel
criteria, make customer evaluations through
more objective criteria and improve the
Bank’s risk measurement capability.
Market Risk
Market risk refers to the risk of any loss
that may occur in the value of positions
in trading accounts due to movements in
interest rates, share prices and exchange
rates. ABank calculates the legal capital
requirements for market risk by using
the standard method, which complies
with BRSA regulations. Moreover, market
risks associated with trading accounts are
quantified and monitored on a daily basis
through the Value at Risk (VaR) method.
Measurements, which are performed using
the exponentially weighted parametric, VaR,
over the last 252 business days, constitute
the basis of the Bank’s risk based trading
limits. The validity of the VaR model is
monitored through retroactively applied
test methodology. In this methodology,
theoretical losses/gains, which are calculated
in the VaR model, are compared to the real
losses/gains the next business day and any
deviations, if any, are monitored.
Structural Interest Rate Risk
Structural interest rate risks are those
risks that the Bank is exposed to through
products such as credits, securities and
deposits, which bear interest sensitivity
despite being monitored in non-trading
accounts. The Bank aims to keep changes
in its economic value within the limits,
which have been determined based on its
shareholders’ equity, in the event that the
Bank is subject to standard interest rate
shocks determined by the BRSA as well as
internal interest rate shocks. Duration/gap
reports, which are used in the measurement
and management of structural interest rate
risk, are produced by placing those financial
products that are monitored in non-trading
accounts into the cash flow statements on
a currency basis, according to the re-pricing
periods or durations. The structural interest
rate risk that the Bank is subject to because
of maturity mismatch is measured by
applying standard interest rate shocks to the
gaps on a maturity tranche basis and the risk
is continuously monitored for its compliance
with determined limits. The interest
sensitivity of the balance sheet is measured
every two weeks by the Risk Management
Department and evaluated at Asset Liability
Committee meetings. When required,
interest rate risk is hedged or limited with
derivatives transactions. The Asset Liability
Committee takes necessary actions to
maintain the Bank’s net economic value and
to create a stable income structure.
Liquidity Risk
The purpose of liquidity risk management
is to prevent the sum of cash held by
the Bank and the borrowing resources
available to the Bank from falling below
a pre-determined ratio of the sum of
deposits and other liabilities that require
creation of liquidity. The Bank aims to
ensure that necessary precautions are
taken in a timely and appropriate manner
to address possible liquidity risks associated
with cash-flow volatility caused by market
conditions and/or its balance sheet
structure. The Bank monitors its liquidity
position in TL and FX terms, as well as
in terms of total liquidity. Moreover, the
Bank’s liquidity status is monitored within
the framework of the Communiqué on
the Measurement and Assessment of the
Bank’s Liquidity Adequacy, published by
the Banking Regulation and Supervision
Agency on November 1, 2006, while the
Risk Management Department reports on
the issue to the Asset Liability Committee
and the Market Risk Committee. The
Bank’s liquidity is monitored according
to legal liquidity adequacy ratios as well
as various parameters that are internally
determined and tested under various stress
assumptions, while test results are reported
to the above referenced committees and the
Board of Directors.
Operational Risk
Operational risk is defined as the possibility
of a direct or indirect loss, caused by people,
processes, systems and external factors.
The Risk Management Department is
responsible for defining, measuring and
following up operational risks that fall under
the risk definition, as well as establishing
coordination of respective managerial
initiatives. All respective units, particularly
the Internal Control and Inspection
Board, contribute to the efforts aimed at
determining and eliminating the operational
risks that arise during the Bank’s operations.
The compliance of services with applicable
regulations and with the Bank’s current
procedures and policies is followed closely.
Records of events leading to monetary
losses are stored in a database established
to follow up on operational risks. Operational
events that frequently occur or lead to
significant losses are evaluated by the
Operational Risk Committee while these
events are managed by undertaking the
necessary action plans after determining
the reasons of such losses and increasing
internal control and audit activities.
49
50
Anadolu Group In Brief
Anadolu Group is one of Turkey’s
leading conglomerates operating
in the beer, soft drinks, automotive,
retail, finance and energy sectors
in 16 countries with more than 80
companies.
Anadolu Group (“The Group”) was
founded in the early 1950s by the Yazıcı
and Özilhan families, which are jointly
the major shareholders of all Group
operations through their respective
holding companies, Yazıcılar Holding A.Ş.
and Özilhan Sınai Yatırım A.Ş.
The Group is structured and primarily
managed in five principal sectors: beer,
soft drinks, automotive, financial services,
retail and other operations, which include
energy, tourism, IT and healthcare
services. The Group has strong expertise
in doing business through partnerships
with globally known companies, brands
and institutions, including Coca-Cola,
Miller, Beck’s, Foster’s, Isuzu, Kia, Geely,
Lombardini, Faber-Castell, McDonald’s and
Johns Hopkins.
The combined revenues of the Group as
of year-end 2012 amounted to about TL
11.6 billion. The Group employs around
27,500 personnel in total.
Highlights From Operations
Beer Operations
The flagship company of Anadolu Group’s
beer operations, Anadolu Efes Biracılık
ve Malt Sanayi A.Ş. (Anadolu Efes), was
established in 2000. Anadolu Efes came
into existence through the merger of
five beer and two malt factories, the
first of which was established in 1969.
Currently, Anadolu Efes is the leader in
the Turkish beer market with more than
an 80% share and runs international
beer operations through its subsidiary,
Efes Breweries International (EBI) based
in the Netherlands. Anadolu Efes beer
division operates in six countries (Turkey,
Russia, Kazakhstan, Moldova, Georgia
and Ukraine) with 18 breweries that have
a total beer producing capacity of 43.7
million hectoliters and seven malteries
with a total malt production capacity of
290,000 tons. As of end-2012, Anadolu
Efes generated a sales volume of 52.7 mhl
with year-on-year growth of 17.7%.
In March 2012, Anadolu Efes established
a strategic alliance with SABMiller. Under
this agreement, SABMiller’s Russian and
Ukrainian operations were acquired by
Anadolu Efes, which thereby became the
second largest beer company in Russia
with eight breweries and one additional
brewery in Ukraine. As a part of this
transaction, 24% shares of Anadolu Efes
were transferred to SABMiller.
Anadolu Efes is listed on the Istanbul
Stock Exchange (ISE) with a market
capitalization of about US$ 8.6 billion as of
end-of year 2012.
Soft Drinks Operations
Coca-Cola İçecek A.Ş. (CCİ), which is 50.3%
owned by Anadolu Efes, runs Coca-Cola
bottling operations in eight countries
(Turkey, Kazakhstan, Azerbaijan, Pakistan,
Kyrgyzstan, Turkmenistan, Jordan, Iraq)
with 22 production facilities yielding a total
bottling capacity of 1,154 million unit/case.
As of end-2012, CCİ generated a sales
volume of 851 million unit/case with yearover-year growth of 11.7%.
CCİ is listed on the ISE with a market
capitalization of approximately US$ 5.3
billion as of year’s end 2012.
ABANK AT A GLANCE
Automotive Operations
Anadolu Group has been active in the
automotive sector since the beginning of
the 1960s. Within the automotive sector,
Anadolu Group imports and markets KIA
and Geely branded passenger cars, light
commercial vehicles as well as Cooper
and Avon branded tires in Turkey; the
Group also runs fleet leasing operations
with an overall fleet size of 12,000 vehicles.
Anadolu Group is also a manufacturer
in the automotive sector. Anadolu Isuzu
Otomotiv Sanayi ve Ticaret A.Ş. (Anadolu
Isuzu), whose major shareholders include
Anadolu Group, Isuzu Motors and Itochu
Co., is one of the leading medium-size
coach manufacturing companies in
Europe. Its main fields of operation are
the production and marketing of light
duty trucks and midibuses. Since the
establishment of the company in 1984,
more than 125,000 vehicles have been
manufactured under the Isuzu Motors
license agreement.
Through its subsidiary, Anadolu Motor,
Anadolu Group also produces generators,
engines, spare parts; additionally, the
company imports and distributes
Lombardini and Honda branded engines
and applications, LS branded tractors and
Gallignani branded balers.
Retail Operations
As part of its retail operations as a
manufacturer, Anadolu Group imports,
produces and exports writing instruments
in partnership with Faber-Castell (Adel
Kalemcilik); the Group also operates a
leading production company in the edible
oil sector with the Komili and Kırlangıç
brands in Turkey (Ana Gıda).
As an importer and distributor in the
retail sector, Anadolu Group has held the
exclusive operating rights of McDonald’s
in Turkey since 2005; McDonald’s
operates through 206 restaurants across
Turkey as of year-end 2012 with over
4,500 employees.
The Group also operates in the IT and
tourism sectors.
Finance Operations
Anadolu Group conducts operations in
the banking sector with Alternatifbank
A.Ş. operating in commercial/corporate
banking with a special focus on the SME
segment. In addition, the Group operates
a leasing company (ALease) and a
brokerage firm (AYatırım).
Other Operations
Anadolu Etap Tarım Ürünleri A.Ş., which
is 33.3% owned by Anadolu Efes, joined
Anadolu Group in 2009. As one of the
largest manufacturers of fruit juice
ingredients in Turkey, the company
currently fills Cappy branded fruit
juices and nectars for Coca-Cola. The
company also serves the beverage and
food markets with various tailor made
products in Turkey, Europe, Russia, the
Commonwealth of Independent States
(CIS) and the Middle East.
Anadolu Group strategically targets
becoming one of the leading players in
the energy sector. The Group established
a partnership with Doğuş Holding
and Doğan Holding for the Aslancık
hydroelectric power plant (120 MW),
which is in the construction phase and
expected to be operational by the end
of 2013 in the Black Sea region. Anadolu
Group is also constructing a hydroelectric
plant in Georgia (Paravani) with a
capacity of 85.5 MW; it is scheduled for
completion in 2014. The flagship project
of Anadolu Group in the energy sector is
a coal-powered energy plant with a total
capacity of 1,200 MW in Gerze in Turkey’s
Black Sea region; this project is currently
in the environmental assessment report
stage.
FINANCIAL TABLES
Corporate Social Responsibility
Anadolu Group places special emphasis
on corporate social responsibility projects.
Since its establishment in 1979, the
Anadolu Education and Social Assistance
Foundation has developed more than
50 long-term initiatives in different
social fields ranging from education to
healthcare. Also granting scholarships
every year to around 850 students, the
foundation has provided scholarships for
20,000 students to date.
Anadolu Medical Center (Istanbul) has
exclusive affiliation with Johns Hopkins
Medicine of Baltimore, Maryland, USA,
and operates the largest and most
technologically advanced healthcare
facility in the region.
Anadolu Group has made major
contributions to the field of sports as well.
Established in 1976, Efes Pilsen Sports
Club is the first Turkish basketball team to
bring the European Championship Title
to Turkey and the first and only Turkish
basketball team that qualified for the final
four in the Euroleague. Free basketball
training schools organized by Efes Pilsen
Sports Club in collaboration with the
General Directorate of Youth and Sports
have produced many nationally and some
globally known players.
Anadolu Group supports arts and culture
through music festivals and provides
sponsorships for various initiatives each
year. During recent years, the Group has
been also very active in supporting new
tourism projects especially in the eastern
regions of Turkey.
51
52
Anadolu Group Financial Subsidiaries
ALease
Established in 1997 as the Anadolu Group’s
leasing arm, ALease is a prominent player
of the leasing sector since its inception.
The Company offers high quality financial
leasing services to a well-diversified
clientele. Having made it a principle to
adhere to the highest business ethics in
its operations, ALease enjoys a respected
presence in the market owing to fast,
flexible and quality solutions produced in
line with the expectations of its selected
customers.
SMEs are the key constituents of ALease’s
client portfolio. In the year 2012, ALease
increased its business volume at a level
which surpassed the sectoral average,
achieving a 71% year on growth versus
the sector’s growth stood at 10% and
increasing its market share to 2.4% from
1.5% in 2011.
The company recorded a business
volume of US$ 151 million on the basis of
644 contracts signed as compared to
US$ 93 million in 2011.
ALease pursues the strategy of
diversifying its delivery channels via
ABank branches and the representative
offices. Within the total transactions
realized by ALease in 2012, those referred
by its sister company ABank have 49%
share. ALease has three representative
offices located in Ankara, Izmir and Adana,
established to expand its delivery network
throughout the country.
ALease’s net lease receivables and total
assets stood at US$ 195 million and
US$ 220 million respectively in 2012 as
compared to US$ 150 million and
US$ 193 million in 2011. ALease posted
US$ 1 million in net profit.
As of year-end 2012 ALease employed a
total of 56 people.
In the year 2012, with the new law of
financial leasing, factoring and finance
companies allowing operating leases, sale
and lease back transactions and software
leases etc., growth in the leasing volume
is expected to accelerate in the coming
years.
ABANK AT A GLANCE
FINANCIAL TABLES
ABank Financial Subsidiaries
AYatırım
Founded in 1997, AYatırım is a wholly
owned subsidiary of ABank and operates
as a boutique investment bank specialized
in asset management and brokerage
services for domestic and international
clients in the Turkish equity and
derivatives markets. AYatırım is a member
of the Istanbul Stock Exchange (ISE), the
Turkish Derivatives Exchange (TurkDEX)
and is regulated by the Capital Markets
Board of Turkey.
In 2012, the Company’s market shares
in the overall trading volume of the
ISE and TurkDEX were 0.4% and 0.7 %,
respectively.
The Asset Management Unit manages
six ABank domestic mutual funds and
an investment trust company, Alternatif
Yatırım Ortaklığı, which is listed on the
ISE with a total mutual fund/closed fund
size of about US$ 64 million at end-2012.
A discretionary portfolio management
service is offered to institutional investors.
The total fund size held by individual/
institutional investors totaled US$ 5 million
as of December 2012.
AYatırım provides its products and
services through five branches, a call
center and the Internet. ABank branches
also act as agents of AYatırım.
The Company’s paid-in capital was
TL 8.5 million as of December 31, 2012.
Alternatif Yatırım Ortaklığı
Alternatif Yatırım Ortaklığı is an ABank
subsidiary established in 1995. Operating
under the regulatory framework of the
Capital Markets Board, the Company’s
main activities involve the management
of stock, repo and other securities
portfolios on domestic exchanges.
Alternatif Yatırım Ortaklığı is Turkey’s third
largest investment trust and commands a
6.8% market share of assets managed by
investment trusts in Turkey.
The Company’s paid-in capital stood at
TL 22.3 million as of December 31, 2012
with 95.96% of its shares trading on the ISE.
53
54
Financial Tables
ALTERNATİFBANK A.Ş.
CONSOLIDATED BALANCE SHEET AT 31 DECEMBER*
(Amounts expressed in thousands of Turkish lira (“TL”) unless otherwise indicated.)
ASSETS
Cash and balances with the Central Bank of Turkey
Loans and advances to banks
2012
2011
627,297
503,029
73,614
111,650
50,255
199,321
Financial assets held for trading
- Trading securities
- Derivative financial instruments
12,205
45,733
5,143,949
4,280,845
- Available-for-sale
783,046
290,592
- Held-to-maturity
1,045,707
828,300
19,741
3,442
21,165
24,237
26,665
8,248
Loans and advances to customers
Investment securities
Other intangible assets
Property and equipment
Deferred income tax assets
Other assets
88,862
106,049
7,892,506
6,401,446
Deposits from banks
1,436,925
660,555
Due to customers
4,169,526
3,647,555
1,031,102
1,064,537
Total assets
LIABILITIES
Other borrowed funds
Obligations under finance leases
-
356
146,263
-
Derivative financial instruments
21,022
23,841
Current income taxes payable
4,959
3,915
29,420
15,654
4,878
4,081
Debt securities in issue
Other provisions
Retirement benefit obligations
Other liabilities
190,028
199,256
Subordinated debt
257,489
274,470
7,291,612
5,894,220
420,000
300,000
98
85
Total liabilities
EQUITY
Share capital
Share premium
Other reserves
21,468
3,836
Retained earnings
143,517
183,746
585,083
487,667
15,811
19,559
Equity attributable to shareholders of the Parent
Non-controlling interests in equity
Total equity
Total liabilities and equity
* The IFRS report can be reached from the attached CD.
600,894
507,226
7,892,506
6,401,446
ABANK AT A GLANCE
FINANCIAL TABLES
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER*
(Amounts expressed in thousands of Turkish lira (“TL”) unless otherwise indicated.)
2012
2011
Interest income
860,523
520,157
Interest expense
441,189
283,895
419,334
236,262
46,323
43,710
6,113
3,433
40,210
40,277
7,522
(15,683)
(25,172)
4,210
Gains / losses from investment securities, net
16,939
4,052
Other operating income
17,769
3,842
476,602
272,960
credit related commitments, net
(181,901)
(83,857)
Other operating expenses
(195,952)
(162,060)
Profit before income tax
98,749
27,043
Income tax expense
(17,470)
(6,158)
Profit for the year
81,279
20,885
79,682
20,782
1,597
103
81,279
20,885
0.21262
0.06927
Net interest income
Fee and commission income
Fee and commission expense
Net fee and commission income
Foreign exchange gains and losses, net
Trading gains and losses, net
Operating income
Impairment losses on loans and
Attributable to:
Equity holders of the Bank
Non-controlling interest
Basic earnings per share attributable to the equity holders of
the Bank (expressed in TL per thousand share)
* The IFRS report can be reached from the attached CD.
55
56
Directory
BRANCH NAME
BRANCH ADDRESS
TEL
FAX
Cumhuriyet Cad. No: 46 Şişli 34367 Istanbul
+90 212 315 65 00
+90 212 233 15 00
Kaptanpaşa Mah. Piyalepaşa Bulvarı
Ortadoğu Plaza Kat: 13-14-15-16-17
No: 73 Şişli/Istanbul
+90 212 314 27 00
+90 212 314 29 69
Ziyapaşa Bulvarı Refah Apt. No. 29/A 01130
Adana
+90 322 459 18 88
+90 322 458 35 73
Yenigün Mah.Yenicami Sok. Palmiye İş
Merkezi No: 8 Sakarya/Adapazarı
+90 264 272 25 10
+90 264 272 25 22
Dumlupınar Mah. Ordu Bulvarı Süleyman
Göncen Cad. No: 2 Merkez/Afyonkarahisar
+90 272 213 22 40
+90 272 213 22 16
Güllerpınarı Mah. Çevreyolu Cad. Bulvar Palas
Apt. No: 286 Dükkan No: 1 ve 2, Daire No: 3
Alanya/Antalya
+90 242 511 06 08
+90 242 513 89 02
Mahir İz Caddesi No: 20 A Blok Altunizade
34662 Istanbul
+90 216 474 74 88
+90 216 474 70 99
Cumhuriyet Mah. 2255. Sok. No: 3 ÇayırovaGebze/Izmit
+90 212 314 29 21
+90 262 653 63 14
Turan Güneş Bulvarı No:17/A Yıldız
Çankaya/Ankara
+90 312 442 21 40
+90 312 442 41 61
Antakya Branch
Yavuz Selim Cad. Zühtiye Ökten Çarşısı A Blok
No: 7-8-16 Antakya/Hatay
+90 326 225 37 37
+90 326 225 37 08
Antalya Branch
Balbey Mah. İsmet Paşa Cad. No: 3-4 07040
Antalya
+90 242 243 22 03
+90 242 247 77 85
Cihangir Mah. E-5 Yanyol Düz Sok. No: 1
34840 Avcılar/Istanbul
+90 212 422 24 10
+90 212 422 76 65
Hasanefendi Mah. Hükümet Bulvarı 1905.
Sokak No: 11 Merkez /Aydın
+90 256 214 75 44
+90 256 214 43 12
İncirli Cad. No: 106 34144 Bakırköy /Istanbul
+90 212 542 56 54
+90 212 543 53 18
Bakırköy Çarşı Branch
Cevizlik Mah. Hüsreviye Sok. No: 14
Bakırköy/Istanbul
+90 212 660 30 46
+90 212 572 53 02
Balgat Ankara Branch
Ceyhun Atıf Kansu Cad. Başkent Plaza
İş Merkezi No: 106/56 Çankaya/Ankara
+90 312 472 18 00
+90 312 472 10 40
Bayrampaşa Branch
Yeni Maltepe Cad. No: 2 Doğa Plaza 34030
Bayrampaşa /Istanbul
+90 212 501 53 00
+90 212 501 43 15
Beylikdüzü Branch
Yakuplu Merkez Mah. Hürriyet Bulvarı No: 1
SkyPort Residence Beylikdüzü/Istanbul
+90 212 879 26 80
+90 212 879 26 93
Kıbrıs Şehitleri Cad. No: 112 48400
Bodrum/Muğla
+90 252 313 90 07
+90 252 313 42 30
Head Office
Operation and Technology
Center
Adana Branch
Adapazarı Branch
Afyonkarahisar Branch
Alanya Branch
Altunizade Branch
Anadolu Sağlık Merkezi
Branch
Ankara Branch
Avcılar Branch
Aydın Branch
Bakırköy Branch
Bodrum Branch
ABANK AT A GLANCE
BRANCH NAME
FINANCIAL TABLES
BRANCH ADDRESS
TEL
FAX
Kırcaali Mah. Kayalı Sok. Ortaklar İş Merkezi
No: 34/ B 16220 Bursa
+90 224 272 68 80
+90 224 272 68 90
Bağdat Cad. Deniz Apt. No: 298 Caddebostan
/Istanbul
+90 216 363 49 90
+90 216 478 02 19
Vatan Bulvarı Güvenlik Mah. 282 Sok. Kadri
Melli İş Merkezi No: 10 /1 ve 3 Çallı/Antalya
+90 242 345 36 80
+90 242 346 22 18
Kazimiye Mah. Omurtak Cad. Kılıçoğlu Plaza
(Kipa Karşısı) A Blok Zemin Kat No: 4 59850
Çorlu/Tekirdağ
+90 282 673 63 63
+90 282 673 63 73
Çorum Branch
İnönü Cad. No: 61 Çorum
+90 364 201 03 10
+90 364 201 03 22
Denizli Branch
Saraylar Mah. 2. Ticari Yol No: 32/20100
Bayramyeri /Denizli
+90 258 262 42 60
+90 258 242 65 90
Bahçelievler Mah. Şehit İbrahim Koparır Cad.
No: 4 Bahçelievler/Istanbul
+90 212 449 38 67
+90 212 677 55 13
Sakarya Cad. No: 56/A 26100 Eskişehir
+90 222 230 71 72
+90 222 230 70 92
Gatem Toptancılar Sitesi, Mavi Ada 3. Blok No:
2 Şehitkamil/Gaziantep
+90 342 238 21 80
+90 342 238 21 96
İncirlipınar Mah. Profösör Muammer Aksoy
Bulvarı F&H İş Merkezi No: 9-10
ŞehitKamil/Gaziantep
+90 342 215 31 15
+90 342 220 03 91
Akçay Cad. No: 213/1 35410 Gaziemir/Izmir
+90 232 252 55 77
+90 232 252 18 45
Gaziosmanpaşa Istanbul
Branch
Cumhuriyet Meydanı No: 19 Gaziosmanpaşa /
Istanbul
+90 212 581 83 83
+90 212 581 85 08
Gebze Branch
Osman Yıldız Mah. Istanbul Cad. No: 64 41400
Gebze/Kocaeli
+90 262 643 20 00
+90 262 643 61 44
Gülbahar Cad. Evren Mah. Günnur Sok. No: 1
34212 Güneşli/Istanbul
+90 212 550 63 53
+90 212 550 79 84
Hadımköy Branch
Akçaburgaz Mah. Hadımköy Yolu No: 190
Esenyurt /Hadımköy/Istanbul
+90 212 886 85 50
+90 212 886 13 09
İkitelli Branch
İkitelli Organize Sanayi Bölgesi Demirciler
Sanayi Sitesi G-1 Blok No: 484 34306
Başakşehir/ Istanbul
+90 212 671 46 43
+90 212 671 46 67
Bursa Branch
Caddebostan Branch
Çallı Antalya Branch
Çorlu Branch
Efes Merter Branch
Eskişehir Branch
Gatem Gaziantep Branch
Gaziantep Branch
Gaziemir Izmir Branch
Güneşli Branch
57
58
Directory
BRANCH NAME
BRANCH ADDRESS
TEL
FAX
Istanbul Deri ve Endüstri
Free Zone Branch
Hakkı Matraş Cad. No: 11 34953 Tuzla/Istanbul
+90 216 394 26 67
+90 216 394 26 72
İvedik Ankara Branch
İvogsan Melih Gökçek Bulvarı 1476 Sokak No:
8 /2 Yenimahalle/Ankara
+90 312 395 71 18
+90 312 395 87 14
Izmir Branch
Şehit Nevres Bulvarı No: 23/A/ 35210
Alsancak/ Izmir
+90 232 422 69 10
+90 232 463 90 19
Izmit Branch
Karabaş Mah. Cumhuriyet Cad. No: 180 41100
Izmit/Kocaeli
+90 262 322 06 05
+90 262 322 06 30
Cemal Gürsel Cad. 164/1 35600
Karşıyaka - Izmir
+90 232 369 99 00
+90 232 369 19 67
Kartal Branch
Ankara Asfaltı Yan Yol. Kurfalı Mah. Kartal İş
Merkezi B Blok 34861 Kartal/Istanbul
+90 216 452 44 44
+90 216 452 44 37
Kayseri Branch
Cumhuriyet Mah. Millet Cad. No: 36 38040
Kayseri
+90 352 222 11 11
+90 352 222 35 40
Kaynarca Branch
Fevzi Çakmak Mah. Cemal Gürsel Cad. No: 161
Pendik/Istanbul
+90 216 397 64 24
+90 216 397 93 68
Konya Branch
Fevzi Çakmak Mah. Ankara Yolu Üzeri No: 212
42090 Karatay/Konya
+90 332 342 54 66
+90 332 342 34 46
Ankara Asfaltı Üzeri F.S.M. Hastanesi Yanı
Umut Sok. No: 12 34752 İçerenköy/Istanbul
+90 216 574 79 74
+90 216 573 74 11
Sanayi Mah. Eski Büyükdere Cad. No: 31/A
Kağıthane /Istanbul
+90 212 280 62 10
+90 212 280 60 72
Cumhuriyet Cad. No: 46 A 34367 Şişli/Istanbul
+90 212 315 65 00
+90 212 232 99 07
Malatya Branch
İzzetiye Mah. Posta Cad. No: 14 Malatya
+90 422 324 95 95
+90 422 324 95 82
Maltepe Branch
Atatürk Cad. No: 41/2 Maltepe /Istanbul
+90 216 442 00 85
+90 216 442 00 79
75. Yıl Mah. Bahri Sarıtepe Cad.
No: 67/A Manisa
+90 236 233 94 30
+90 236 236 03 78
Marmaris Branch
Tepe Mah. Ulusal Egemenlik Cad. 71. Sokak
No: 1 Marmaris/Muğla
+90 252 413 21 00
+90 252 413 21 13
Mersin Branch
Camii Şerif Mah. İstiklal Cad. No: 32 33060
Mersin
+90 324 237 90 00
+90 324 237 76 15
Merter Branch
Fatih Cad. No: 18 Merter-Güngören/Istanbul
+90 212 637 27 60
+90 212 637 27 95
Izmir Yolu Girişi F.S.M Bulvarı
No: 128/19 16010 Bursa
+90 224 247 36 00
+90 224 245 40 97
Karşıyaka Izmir Branch
Kozyatağı Branch
Levent Branch
Main Branch
Manisa Branch
Nilüfer Bursa Branch
ABANK AT A GLANCE
BRANCH NAME
FINANCIAL TABLES
BRANCH ADDRESS
TEL
FAX
Ostim Ankara Branch
Alınteri Bulvarı No: 80 06370 Ostim Ankara
+90 312 385 69 10
+90 312 385 69 20
Pınarbaşı Izmir Branch
Kemalpaşa Cad. No: 19/A Zemin Kat 35060
Pınarbaşı/Izmir
+90 232 479 90 10
+90 232 479 90 14
Rami Topçular Branch
Rami Kışla Cad. Cicoz Yolu Bülent Kuşcu İş
Merkezi No: 1 Eyüp/Istanbul
+90 212 544 62 10
+90 212 544 62 40
Sahra-i Cedit Branch
Şemsettin Günaltay Cad. Osmanlı Sitesi No:
213 34738 Erenköy/Istanbul
+90 216 363 48 10
+90 216 360 03 20
Samsun Branch
Merkez Kale Mah Kazımpaşa Cad. No: 21
55000 Samsun
+90 362 432 34 55
+90 362 432 63 87
Sincan Ankara Branch
Atatürk Mah. Ankara Cad. No: 54 Sincan/
Ankara
+90 312 275 01 15
+90 312 275 02 14
Bahçekapı Cad. No: 29 Arpacılar 34112
Sirkeci/Istanbul
+90 212 511 95 09
+90 212 522 26 90
Demirhendek Cad. No: 128 06160
Siteler/Ankara
+90 312 348 34 00
+90 312 348 68 08
Halaskargazi Cad. Çankaya Apt. No: 150/A
34371 Şişli/Istanbul
+90 212 219 41 51
+90 212 219 41 63
Abdurrahman Mah. Fatih Bulvarı Av. Ahmet
Kaya İşhanı No: 107/A Sultanbeyli/Istanbul
+90 216 398 95 60
+90 216 398 95 83
Kemerkaya Mah. Maraş Cad. Ahmet Selim
Teymur Sokak No: 5/A 61200 Trabzon
+90 462 326 98 87
+90 462 321 95 46
Tuzla O.S.B
Melek Aras Bulvarı A1 Blok No: 2 Kat: 2-3
Tuzla/Istanbul
+90 216 593 17 99
+90 216 593 17 95
Ümraniye - İmes Branch
İmes Sanayi Sitesi C Blok 302 Sok. No: 2
34735 Yukarı Dudullu/Istanbul
+90 216 364 53 53
+90 216 364 53 52
Alemdağ Cad. No: 160 Ümraniye /Istanbul
+90 216 505 70 20
+90 216 505 70 18
Sirkeci Branch
Siteler Ankara Branch
Şişli Branch
Sultanbeyli Branch
Trabzon Branch
Ümraniye Branch
59
60
Branch Network
1
28
1
3
1
2
1
6
1
1
4
1
1
1
2
3
1
ABANK AT A GLANCE
1
1
1
1
1
2
1
FINANCIAL TABLES
61
ABANK AT A GLANCE
CONSOLIDATED FINANCIAL STATEMENTS
TOGETHER WITH AUDITOR’S REPORT
31 DECEMBER 2012
CONSOLIDATED FINANCIAL STATEMENTS
TOGETHER WITH AUDITOR’S REPORT
31 DECEMBER 2012
FINANCIAL TABLES
63
64
ABANK AT A GLANCE
FINANCIAL TABLES
65
66
ALTERNATİFBANK
ALTERNATİFBANK
A.Ş. A.Ş.
INDEXINDEX
TO THE
TOCONSOLIDATED
THE CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
CONTENTS
CONTENTS
PAGE
PAGE PAGE
CONSOLIDATED
CONSOLIDATED
BALANCE
BALANCE
SHEET......................................................................................
SHEET......................................................................................
1
67
1
CONSOLIDATED
CONSOLIDATED
INCOME
INCOME
STATEMENT.............................................................................
STATEMENT.............................................................................
2
68
2
CONSOLIDATED
STATEMENT
OF COMPREHENSIVE
INCOME
.................................
3
CONSOLIDATED
STATEMENT
OF COMPREHENSIVE
INCOME
.................................
69
3
CONSOLIDATED
STATEMENT
OF CHANGES
IN EQUITY
.............................................
4
CONSOLIDATED
STATEMENT
OF CHANGES
IN EQUITY
.............................................
70
4
CONSOLIDATED
CASH CASH
FLOWFLOW
STATEMENT
.....................................................................
5
CONSOLIDATED
STATEMENT
.....................................................................
71
5
NOTESNOTES
TO THE
FINANCIAL
STATEMENTS:.....................................
6-58 6-58
TOCONSOLIDATED
THE CONSOLIDATED
FINANCIAL
STATEMENTS:.....................................
72-124
NOTE 1 NOTE
GENERAL
1
GENERAL
INFORMATION
INFORMATION
....................................................................................................................
....................................................................................................................
726
NOTE 2 NOTE
SUMMARY
2
SUMMARY
OF SIGNIFICANT
OF SIGNIFICANT
ACCOUNTING
ACCOUNTING
POLICIES..................................................................
POLICIES..................................................................
7-22
73-88
NOTE 3 NOTE
CRITICAL
3
CRITICAL
ACCOUNTING
ACCOUNTING
ESTIMATES
ESTIMATES
AND JUDGEMENTS
AND JUDGEMENTS
IN APPLYING
ACCOUNTING
POLICIES
.............................................................................................
22
IN APPLYING
ACCOUNTING
POLICIES
.............................................................................................
88
NOTE 4 NOTE
FINANCIAL
RISK MANAGEMENT.......................................................................................................
23-36
4
FINANCIAL
RISK MANAGEMENT.......................................................................................................
89-104
NOTE 5 NOTE
CASH
CASH
EQUIVALENTS
.......................................................................................................
37
5 AND
CASH
AND
CASH EQUIVALENTS
.......................................................................................................
103
NOTE 6 NOTE
CASH
BALANCES
WITH THE
CENTRAL
BANK OF
TURKEY
...............................................
37
6 AND
CASH
AND BALANCES
WITH
THE CENTRAL
BANK
OF TURKEY
...............................................
103
NOTE 7 NOTE
LOANS
AND
ADVANCES
TO BANKS..................................................................................................
38
7
LOANS
AND ADVANCES
TO BANKS..................................................................................................
104
NOTE 8 NOTE
FINANCIAL
ASSETS ASSETS
HELD FOR
TRADING
........................................................................................
38
8
FINANCIAL
HELD
FOR TRADING
........................................................................................
104
104
NOTE 9 NOTE
DERIVATIVE
FINANCIAL
INSTRUMENTS.........................................................................................
39
9
DERIVATIVE
FINANCIAL
INSTRUMENTS.........................................................................................
NOTE 10NOTE
LOANS
AND
ADVANCES
TO CUSTOMERS
.......................................................................................
40
10
LOANS
AND ADVANCES
TO CUSTOMERS
.......................................................................................
106
NOTE 11NOTE
INVESTMENT
SECURITIES...................................................................................................................
41-42
11
INVESTMENT
SECURITIES...................................................................................................................
107-108
NOTE 12NOTE
OTHER
ASSETS ASSETS
..............................................................................................................
42-43
12 INTANGIBLE
OTHER INTANGIBLE
..............................................................................................................
108-109
NOTE 13NOTE
PROPERTY
AND EQUIPMENT..............................................................................................................
43-44
13
PROPERTY
AND EQUIPMENT..............................................................................................................
110
110
NOTE 14NOTE
OTHER
ASSETS
.......................................................................................................................................
44
14
OTHER ASSETS
.......................................................................................................................................
NOTE 15NOTE
DEPOSITS
FROM BANKS
45
15
DEPOSITS
FROM ......................................................................................................................
BANKS ......................................................................................................................
111
NOTE 16NOTE
DUE
CUSTOMERS
............................................................................................................................
45
16 TO DUE
TO CUSTOMERS
............................................................................................................................
111
112
NOTE 17NOTE
OTHER
FUNDS AND
SUBORDINATED
DEBT ............................................................
46
17 BORROWED
OTHER BORROWED
FUNDS
AND SUBORDINATED
DEBT ............................................................
NOTE 18NOTE
DEBT
IN ISSUE.................................................................................................................
46
112
18 SECURITIES
DEBT SECURITIES
IN ISSUE.................................................................................................................
NOTE 19NOTE
TAXATION
...............................................................................................................................................
47-48
19
TAXATION
...............................................................................................................................................
113-114
NOTE 20NOTE
OTHER
..............................................................................................................................
49
20 PROVISIONS
OTHER PROVISIONS
..............................................................................................................................
115
NOTE 21NOTE
RETIREMENT
BENEFITBENEFIT
OBLIGATIONS..............................................................................................
49-50
21
RETIREMENT
OBLIGATIONS..............................................................................................
115-116
NOTE 22NOTE
OTHER
LIABILITIES...............................................................................................................................
50
22
OTHER LIABILITIES...............................................................................................................................
116
116
NOTE 23NOTE
SHARE
AND SHARE
50
23 CAPITAL
SHARE CAPITAL
AND PREMIUM..........................................................................................
SHARE PREMIUM..........................................................................................
NOTE 24NOTE
RETAINED
EARNINGS
AND OTHER
..............................................................................
51
24
RETAINED
EARNINGS
AND RESERVES
OTHER RESERVES
..............................................................................
117
118
NOTE 25NOTE
NET
INCOME........................................................................................................................
52
25 INTEREST
NET INTEREST
INCOME........................................................................................................................
NOTE 26NOTE
NET
AND
COMMISSION
INCOMEINCOME
...............................................................................................
52
26 FEENET
FEE
AND COMMISSION
...............................................................................................
118
NOTE 27NOTE
TRADING
GAINS AND
LOSSES,
NET ..................................................................................................
53
27
TRADING
GAINS
AND LOSSES,
NET ..................................................................................................
119
NOTE 28NOTE
OTHER
EXPENSES
..........................................................................................................
53
28 OPERATING
OTHER OPERATING
EXPENSES
..........................................................................................................
119
119
NOTE 29NOTE
IMPAIRMENT
LOSSES LOSSES
ON LOANS
CREDIT
RELATED
COMMITMENTS
............................
53
29
IMPAIRMENT
ON AND
LOANS
AND CREDIT
RELATED
COMMITMENTS
............................
NOTE 30NOTE
ASSETS
PLEDGED
AND RESTRICTED................................................................................................
54
120
30
ASSETS
PLEDGED
AND RESTRICTED................................................................................................
120-121
NOTE 31NOTE
COMMITMENTS
AND CONTINGENT
LIABILITIES
..........................................................................
54-55
31
COMMITMENTS
AND CONTINGENT
LIABILITIES
..........................................................................
NOTE 32NOTE
SEGMENT
ANALYSIS
............................................................................................................................
56
32
SEGMENT
ANALYSIS
............................................................................................................................
122
NOTE 33NOTE
RELATED
PARTY TRANSACTIONS
....................................................................................................
57
123
33
RELATED
PARTY TRANSACTIONS
....................................................................................................
NOTE 34NOTE
ASSETS
UNDER UNDER
MANAGEMENT
.........................................................................................................
58
34
ASSETS
MANAGEMENT
.........................................................................................................
124
NOTE 35NOTE
POST
SHEET EVENTS.........................................................................................................
58
35 BALANCE
POST BALANCE
SHEET EVENTS.........................................................................................................
124
6
7-22
22
23-36
37
37
38
38
39
40
41-42
42-43
43-44
44
45
45
46
46
47-48
49
49-50
50
50
51
52
52
53
53
53
54
54-55
56
57
58
58
ABANK AT A GLANCE
CONSOLIDATED BALANCE SHEET AT 31 DECEMBER
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise indicated.)
ASSETS
- Held-to-maturity
Other assets
Note
2012
2011
6
7
627,297
73,614
503,029
111,650
8
9
50,255
12,205
5,143,949
199,321
45,733
4,280,845
11
11
12
13
19
14
783,046
1,045,707
19,741
21,165
26,665
88,862
290,592
828,300
3,442
24,237
8,248
106,049
7,892,506
6,401,446
1,436,925
4,169,526
1,031,102
146,263
21,022
4,959
29,420
4,878
190,028
257,489
660,555
3,647,555
1,064,537
356
23,841
3,915
15,654
4,081
199,256
274,470
7,291,612
5,894,220
420,000
98
21,468
143,517
300,000
85
3,836
183,746
585,083
487,667
15,811
19,559
600,894
507,226
7,892,506
6,401,446
Total assets
LIABILITIES
Deposits from banks
Due to customers
Other provisions
Other liabilities
Subordinated debt
15
16
17
18
9
19
20
21
22
17
Total liabilities
EQUITY
Share capital
Share premium
Other reserves
Retained earnings
23
23
24
24
Equity attributable to shareholders of the Parent
Non-controlling interests in equity
Total equity
Total liabilities and equity
Theaccompanying
accompanyingnotes
notesset
setout
outon
onpages
pages96
6 to 58
The
148form
formananintegral
integralpart
partofofthese
theseconsolidated
consolidatedfinancial
financialstatements.
statements.
1
FINANCIAL TABLES
67
68
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER
Note
2012
2011
25
25
860,523
441,189
520,157
283,895
419,334
236,262
46,323
6,113
43,710
3,433
40,210
40,277
7,522
(25,172)
16,939
17,769
(15,683)
4,210
4,052
3,842
476,602
272,960
(181,901)
(195,952)
(83,857)
(162,060)
98,749
27,043
(17,470)
(6,158)
Profit for the year
81,279
20,885
Attributable to:
Equity holders of the Bank
79,682
1,597
20,782
103
81,279
20,885
0.21262
0.06927
Interest income
Interest expense
Net interest income
Fee and commission income
Fee and commission expense
26
26
Foreign exchange gains and losses, net
Trading gains and losses, net
Gains / losses from investment securities, net
Other operating income
27
27
Operating income
Impairment losses on loans and
credit related commitments, net
Other operating expenses
29
28
Income tax expense
19
Basic earnings per share attributable to the equity holders
of the Bank (expressed in TL per thousand share)
2.28
The accompanying notes set out on pages 96 to 148 form an integral part of these consolidated financial statements.
2
ABANK AT A GLANCE
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note
2012
2011
81,279
20,885
26,798
(4,601)
(5,748)
(5,360)
(2,301)
1,150
Other comprehensive income for the period, net of tax
15,690
(5,752)
Total comprehensive income for the year
96,969
15,133
Total comprehensive income attributable to:
Equity holders of the parent entity (total)
Non-controlling interests (total)
95,372
1,597
15,030
103
Profit for the year
Net gains on available- for sale financial assets, net of tax
- Unrealised net gains arising during the year, before tax
- Net change in fair value of financial assets transferred to
income statement
Income tax relating to components of other comprehensive income
3
FINANCIAL TABLES
69
70
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to equity holders of the Bank
Note
Balance at 1 January 2011
Net change in available for sale investments,
net of tax
24
Noncontrolling
interest
Total
Share
capital
Share
premium
Other
Reserves
Retained
earnings
300,000
85
8,017
164,535
472,637
Total
equity
19,836
492,473
-
-
(5,752)
-
(5,752)
-
(5,752)
Profit for the year
-
-
-
20,782
20,782
103
20,885
-
-
(5,752)
20,782
15,030
103
15,133
Transfer to statutory reserves
Dividend paid to minority
-
-
1,571
-
(1,571)
-
-
(380)
(380)
300,000
85
3,836
183,746
487,667
19,559
507,226
Balance at 31 December 2011
Net change in available for sale investments,
net of tax
-
-
15,690
-
15,690
-
15,690
Profit for the year
24
-
-
15,690
79,682
79,682
79,682
95,372
1,597
1,597
81,279
96,969
Purchase from non-controlling interests
Dividend paid to minority
-
13
-
127
-
1,904
-
2,044
-
(5,324)
(21)
(3,280)
(21)
Capital increase
120,000
-
-
1,815
(120,000)
(1,815)
-
-
-
Balance at 31 December 2012
420,000
98
21,468
143,517
585,083
15,811
600,894
Theaccompanying
accompanying notes
notes set
set out
out on
on pages
pages 96
6 toto58
form
anan
integral
part
ofof
these
consolidated
financial
statements.
The
148
form
integral
part
these
consolidated
financial
statements.
4
ABANK AT A GLANCE
CONSOLIDATED CASH FLOW STATEMENT
Note
2012
2011
Cash flows from operating activities
Interest received
Interest paid
Fees and commissions received
Income from banking services
Trading income
Recoveries of loans previously written off
Fees and commissions paid
Cash payments to employees and other parties
Cash received from other operating activities
Cash paid for other operating activities
Taxes paid
Cash flows from operating profits before
changes in operating assets and liabilities
Changes in operating assets and liabilities:
Trading securities
Loans and advances
Other assets
Deposits from other banks
Deposits
Other money market deposits
Other liabilities
855,115
(449,240)
34,760
11,563
36,427
14,422
(6,113)
(118,403)
109,846
(209,320)
(10,384)
520,157
(283,895)
37,324
6,386
11,973
8,285
(3,434)
(100,288)
10,917
(66,150)
(1,193)
268,673
140,082
149,102
(939,026)
17,044
5,017
529,851
771,353
(45,575)
Net cash from operating activities
487,766
Cash flows from investing activities
Purchases of available for sale securities
Proceeds from sale and redemption of available-for-sale securities
Purchases of held to maturity securities
Redemption of held to maturity securities
Purchases of premises and equipment
Proceeds from sale property and equipment
Purchase of intangible assets, net
8,310
(1,144,659)
(58,481)
(147,209)
1,203,338
349,477
18,779
229,555
(13,733,933)
13,273,627
(686,353)
464,809
(4,258)
71
(18,515)
(1,041,367)
749,097
(841,231)
435,901
(14,283)
9,120
(1,862)
Net cash (used in) investing activities
(704,552)
(704,625)
Cash flows from financing activities
Proceeds from funds borrowed
Payments for funds borrowed
Proceeds from bond issue
Payments of finance lease liabilities
741,700
(790,526)
145,020
(356)
1,015,234
(486,944)
(635)
95,838
527,655
Net increase in cash and cash equivalents
147,725
192,667
Effects of foreign exchange-rate changes
on cash and cash equivalents
(37,138)
(26,048)
Net cash from financing activities
Cash and cash equivalents at beginning of the year
5
360,259
193,640
Cash and cash equivalents at end of the year
5
470,846
360,259
The
to 58
148form
formananintegral
integralpart
partofofthese
theseconsolidated
consolidatedfinancial
financialstatements.
statements.
Theaccompanying
accompanyingnotes
notesset
setout
outon
onpages
pages96
6 to
5
FINANCIAL TABLES
71
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL INFORMATION
Alternatifbank A.Ş. (a Turkish joint stock company - “the Bank”) was incorporated in Istanbul on
6 November 1991 and started operations in February 1992, The Bank was acquired by Anadolu Group
in 1996, Certain shares of the Bank, representing 4.16% of the total, are listed on the Istanbul Stock
Exchange (“ISE”).
The registered office address of the Bank is at Cumhuriyet Caddesi No: 46 Elmadağ / Istanbul.
The consolidated financial statements of the Bank were authorized for issue by the management on
26 February 2013. The ultimate parents of the Bank are Yazıcılar Holding A.Ş., Özilhan Sınai Yatırım
A.Ş. and Anadolu Endüstri Holding A.Ş. The Bank is a member of Anadolu Group.
For the purposes of the consolidated financial statements, the Bank and its consolidated subsidiaries
are referred to as “the Group”.
The operations of the Group consist of banking, brokerage and portfolio management in capital
markets conducted mainly with local customers.
The Bank provides banking services through 63 (2011: 63) branches in Turkey. At 31 December 2012,
the Group has 1,230 employees (2011: 1,234).
The subsidiaries and the Bank’s shareholding included in consolidation and their shareholding
percentages at 31 December 2012 and 2011 are as follows:
Alternatif Yatırım A.Ş. (1)
Alternatif Yatırım Ortaklığı A.Ş. (2)
Effective
Place of
shareholding %
Incorporation
2012
Istanbul/Turkey
99.99
Istanbul/Turkey
65.50
Effective
shareholding %
2011
99.99
52.60
The principal activities of the consolidated subsidiaries are as follows:
(1)
Alternatif Yatırım A.Ş. renders brokerage and investment banking services to customers in line with the
rules of the Capital Market Board of Turkey.
(2)
Alternatif Yatırım Ortaklığı A.Ş. is a closed ended mutual fund managing portfolios which are made up
of the capital market instruments according to the rules of the related regulation and the Capital Market
Law. Alternatif Yatırım Ortaklığı A.Ş. is a subsidiary since the Bank has the power to govern the
financial and operating policies of such subsidiary under a statute, to appoint or remove the majority of
the members of the board of directors and to cast the majority of votes at the meetings of board of
directors. The Bank holds also a golden share which leads to full control. The Bank applied entity concept
method for the changes in ownership interests in this subsidiary. Therefore; where there is a subsequent
increase in the ownership interest in this subsidiary, the carrying amount of the non-controlling interest is
adjusted to reflect the change in its interest in the subsidiary’s net assets. The difference between the
amount by which the non-controlling interest is so adjusted and the consideration paid, if any, is
recognized directly in equity and attributed to equity holders of the Bank. No goodwill is recognized on
such a transaction.
6
ABANK AT A GLANCE
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements
are set out below. These policies have been consistently applied to all the years presented, unless
otherwise stated.
2.1
Basis of Presentation of Financial Statements
These consolidated financial statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”) including International Accounting Standards and Interpretations issued
by the International Accounting Standards Board (“IASB”).
The consolidated financial statements have been prepared under the historical cost convention, except
for available-for-sale securities and derivative financial instruments that have been measured at fair
value.
The Bank maintains its books of accounts and prepares its statutory financial statements in accordance
with the Banking Law and the “Regulation on Accounting Applications for Banks and Safeguarding of
Documents” published in the Official Gazette No. 26333 dated 1 November 2006, which refers to
Turkish Accounting Standards and Turkish Financial Reporting Standards and additional explanations
and notes related to them and other decrees, notes and explanations related to accounting and financial
reporting principles published by the Banking Regulation and Supervision Agency (“BRSA”) and
other relevant rules promulgated by the Turkish Commercial Code, Capital Markets Board and Tax
Regulations. The subsidiaries maintain their books of accounts based on statutory rules and regulations
applicable in their jurisdictions. The subsidiaries are incorporated in Turkey maintain their books of
account and prepare their statutory financial statements in accordance with the regulations on
accounting and tax legislation in Turkey and the regulations issued by Capital Markets Board.
2.2
Basis of Consolidation
The consolidated financial statements comprise the financial statements of the Bank and all its
subsidiaries, drawn up to 31 December 2012.
Subsidiaries are all entities over which the Group has the power to govern the financial and operating
policies so as to benefit from its activities. This control is normally evidenced when the Group owns,
either directly or indirectly, more than 50% of the voting rights of a company’s share capital and is
able to govern the financial and operating policies of an enterprise so as to benefit from its activities.
The Bank also consolidates a subsidiary in which it has less than 50% shareholding since it has power
to govern the financial and operating policies of such subsidiary under a statute, to appoint or remove
the majority of the members of the board of directors and to cast the majority of votes at the meetings
of board of directors.
Subsidiaries are consolidated from the date on which control is transferred to the Group and cease to
be consolidated from the date on which control is transferred out of the Group.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent
Bank, using consistent accounting policies.
The equity and net income attributable to non controlling interests are shown separately in the
consolidated balance sheet and income statement, respectively.
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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
All intra-group balances, transactions and unrealized gains on intra-group transactions are eliminated
including inter-company profits and unrealized profits and losses. Unrealized losses are also
eliminated unless the transaction provides evidence of impairment of the asset transferred.
2.3
Use of Estimates and Judgments
The preparation of financial statements in conformity with IFRS requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities within the next
financial year. Estimates and judgments are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances. These estimates are reviewed periodically, and, as adjustments become
necessary, they are reported in earnings in the periods in which they become known. The areas
involving a higher degree of judgment or complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements are disclosed in related accounting policies
(Note 3).
2.4
Functional and Presentation Currency
Items included in the financial statements of each of the Group’s entities are measured using the
currency of the primary economic environment in which the entity operates (“the functional
currency”).
The consolidated financial statements are presented in Turkish lira, which is the Company’s functional
and the Group’s presentation currency.
2.5
Fund Management
The Group manages and administers open-ended mutual funds. The financial statements of these
entities are not included in these consolidated financial statements except when the Group controls the
entity. Information about the Group’s funds management is set out in Note 34.
2.6
Foreign Currency Transactions and Translation
Transactions in currencies other than the entity’s functional currency (foreign currencies) are recorded
at the rates of exchange prevailing at the dates of the transactions. At each balance sheet date,
monetary items denominated in foreign currencies are retranslated at the rates prevailing at the balance
sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items
that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange
differences are recognized in profit or loss in the period in which they arise.
2.7
Due from Banks
Amounts due from other banks are recorded when the Group advances money to counterparty banks
with no intention of trading the resulting unquoted non-derivative receivable due on fixed or
determinable dates. Amounts due from other banks are carried at amortised cost.
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ABANK AT A GLANCE
2.8
Premises and Equipment
Premises and equipment are stated at cost less accumulated depreciation and any impairment in value.
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows:
Furniture and fixtures and motor vehicles
Office equipment
Leasehold improvements
if less than 5 years
2 years to 5 years
5 years
5 years, or over the period of the lease
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at
each financial year end. The carrying values of premises and equipment are reviewed for impairment
when events or changes in circumstances indicate the carrying value may not be recoverable. If any
such indication exists and where the carrying values exceed the estimated recoverable amount, the
assets of cash generating units are written down to their recoverable amount. The recoverable amount
is defined as the amount that is the higher of the asset’s fair value less costs to sell and value in use.
Impairment losses are recognized in the income statement. There is no impairment recorded related to
premises and equipment.
An item of premises and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognizing of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the income statement in the year the asset is derecognized.
2.9
Intangible Assets
Intangible assets acquired separately from a business are capitalized at cost. Following initial
recognition intangible assets are carried at cost less any accumulated amortization and any
accumulated impairment losses. Intangible assets with finite lives are amortized on a straight-line basis
over the best estimate of their useful lives and assessed for impairment whenever there is an indication
that the intangible asset may be impaired. There is no impairment recorded related to intangible assets.
The amortization period and the amortization method for an intangible asset with a finite useful life
are reviewed at least at each financial year-end. Changes in the expected useful life or the expected
pattern of consumption of future economic benefits embodied in the asset is accounted for by
changing the amortization period or method, as appropriate, and treated as changes in accounting
estimates. Patents and licenses mainly relate to software and were amortized over their useful
economic lives of 5 years. Development costs for software were amortized over their useful economic
useful lives of 5 years. There are no intangible assets with indefinite useful lives.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in the
income statement when the asset is derecognized.
2.10 Financial Assets
The Group classifies its financial assets in the following categories: financial assets at fair value
through profit or loss; loans and receivables; held-to-maturity investments and available-for-sale
financial assets. When financial assets are recognized initially, they are measured at fair value. The
Group determines the classification of its financial assets at initial recognition.
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All regular way purchases and sales of financial assets are recognized on the settlement date i.e. the
date that the asset is delivered to or by the Group. Regular way purchases or sales are purchases or
sales of financial assets that require delivery of assets within the time frame generally established by
regulation or convention in the market place. Changes in fair value of assets to be received during the
period between the trade date and the settlement date are accounted for in the same way as the
acquired assets i.e. for assets carried at cost or amortized cost; change in value is not recognized.
Financial assets at fair value through profit or loss
Financial assets classified as held-for-trading are included in this category. Trading securities are
securities, which were either acquired for generating a profit from short term fluctuations in price or
dealer’s margin, or are securities included in a portfolio in which a pattern of short term profit taking
exist. Derivatives are also classified as held-for-trading unless they are designated as effective hedging
instruments. Trading securities are initially recognised and subsequently re-measured at fair value. All
related realised and unrealised fair value gains and losses are included in net trading income. Interest
earned whilst holding trading securities is reported as interest income.
Held- to- maturity securities
Non-derivative financial assets with fixed or determinable payments and fixed maturity where
management has both the intent and the ability to hold to maturity are classified as held-to-maturity.
Investments intended to be held for an undefined period are not included in this classification. The
Group follows the guidance of IAS 39 on classifying non-derivative financial assets with fixed or
determinable payments and fixed maturity as held-to-maturity. This classification requires significant
judgments. In making this judgment, the Group evaluates its intention and ability to hold such
investments to maturity. If the Group fails to keep these investments to maturity other than for the
specific circumstances - for example selling an insignificant amount close to maturity - it will be
required to classify the entire class as available- for- sale. The investments would therefore be
measured at fair value; not amortized cost.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest
method, less any impairment in value. Amortized cost is calculated by taking into account all fees paid
or received between parties to the contract that are an integral part of the effective interest rate,
transaction costs and all other premiums or discounts. For investments carried at amortized cost, gains
and losses are recognized in income when the investments are derecognized or impaired, as well as
through the amortization process. Interest earned with holding held to maturity securities is reported as
interest income.
Available- for- sale securities
Available-for-sale financial assets are those non-derivative financial assets that are designated as
available-for-sale or are not classified in any of the three other categories. After initial recognition,
available-for-sale financial assets are measured at fair value. Gains or losses on re-measurement to fair
value are recognized as a separate component of equity until the investment is derecognized, or until
the investment is determined to be impaired, at which time the cumulative gain or loss previously
reported in equity is included in the income statement. However, interest calculated on available-forsale financial assets using effective interest method is reported as interest income.
Dividends received are included in dividend income, if any.
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ABANK AT A GLANCE
For investments that are actively traded in organized financial markets, fair value is determined by
reference to Stock Exchange quoted market bid prices at the close of business on the balance sheet
date. For investments where there is no quoted market price, fair value is determined by reference to
the current market value of another instrument which is substantially the same or is calculated based
on the expected cash flows of the underlying net asset base of the investment. Equity securities for
which fair values cannot be measured reliably are recognized at cost less impairment.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. They arise when the Group provides money, goods or services directly
to a debtor with no intention of trading the receivable. Such assets are carried at amortized cost using
the effective interest method less any impairment in value. Gains and losses are recognized in income
when the loans and receivables are derecognized or impaired, as well as through the amortization
process. Interest earned on such loans and receivables is reported as interest income.
Repurchase and Resale Transactions
The Group enters into sales of securities under agreements to repurchase such securities at a fixed
price at a fixed future date. Such securities, which have been sold subject to a repurchase agreement
(‘repos’), are recognized in the balance sheet and are measured in accordance with the accounting
policy of the security portfolio which they are part of. The difference between sale and repurchase
price is treated as interest expense and accrued over the life of the repurchase agreement using the
effective interest method. Securities sold subject to repurchase agreements (‘repos’) are reclassified in
the financial statements as loaned securities when the transferee has the right by contract or custom to
sell or re-pledge the collateral. The counterparty liability for amounts received under these agreements
is included in deposits from banks.
Securities purchased with a corresponding commitment to resell at a fixed price at a specified future
date (‘reverse repos’) are not recognized in the balance sheet, as the Group does not obtain control
over the assets. Amounts paid under these agreements are included in other money market placements.
The difference between purchase and resale price is treated as interest income and accrued over the
life of the reverse repurchase agreement using the effective interest method.
Netting off Financial Assets and Liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is
a legally enforceable right to set off the recognized amounts and there is an intention to settle on a net
basis or realize the asset and settle the liability simultaneously.
Recognition and Derecognition of Financial Instruments
The Group recognizes a financial asset or financial liability in its balance sheet when and only when it
becomes a party to the contractual provisions of the instrument.
The Group derecognizes a financial asset (or, where applicable a part of a financial asset or part of a
group of similar financial assets) when the rights to receive cash flows from the asset have expired; or
while retaining the right to receive cash flows from the asset the Group has also assumed an obligation
to pay them in full without material delay to a third party; or the Group has transferred its rights to
receive cash flows from the asset and either has transferred substantially all the risks and rewards of
the asset, or has transferred the control of the asset.
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Where the Group has transferred its rights to receive cash flows from an asset and has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the
asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of the consideration that
the Group could be required to repay.
The Group derecognizes a financial liability when the obligation under the liability is discharged or
cancelled or expires. When an existing liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as a de-recognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts is recognized in profit or loss.
2.11 Impairment of Financial Assets
Financial assets carried at amortized cost
In determining whether an impairment loss should be recorded in the income statement, the Group
makes judgments as to whether there is any observable data indicating that there is a measurable
decrease in the estimated amounts recoverable from a portfolio of loans and individual loans and held
to maturity investments. Objective evidence that a financial asset or group of assets is impaired
includes observable data that comes to the attention of the Group about the following loss events:
a)
b)
c)
d)
e)
Significant financial difficulty of the issuer or obliger;
A breach of contract, such as a default or delinquency in interest or principal payments by more
than 90 days;
The Group granting to the borrower, for economic or legal reasons relating to the borrower’s
financial difficulty, a concession that the lender would not otherwise consider;
It becoming probable that the borrower will enter bankruptcy or other financial
reorganization; or
Observable data indicating that there is a measurable decrease in the estimated future cash flows
from a group of financial assets since the initial recognition of those assets, although the
decrease cannot yet be identified with the individual financial assets in the group, including:
i)
ii)
Adverse changes in the payment status of borrowers; or
National or local economic conditions that correlate with defaults on the assets in the
group of financial assets.
If there is objective evidence that an impairment loss on loans and receivables or held-to-maturity
investments carried at amortized cost has been incurred, the amount of the loss is measured based on
the difference between the asset’s carrying amount and the estimated recoverable amount. The
carrying amount of the asset is reduced through the use of an allowance account. The amount of the
loss is recognized in the income statement. The estimated recoverable amount of a collateralized
financial asset is measured based on the amount that is expected to be realized from foreclosure less
costs for obtaining and selling the collateral, whether or not the foreclosure is probable.
The Group first assesses whether objective evidence of impairment exists individually for financial
assets that are individually significant, and individually or collectively for financial assets that are not
individually significant. Loans with principal and/or interest overdue for more than 90 days are
considered as non-performing and are assessed for impairment.
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ABANK AT A GLANCE
If it is determined that no objective evidence of impairment exists for an individually assessed
financial asset, whether significant or not, the asset is included in a group of financial assets with
similar credit risk characteristics and that group of financial assets is collectively assessed for
impairment. Assets that are individually assessed for impairment and for which an impairment loss is
or continues to be recognized are not included in a collective assessment of impairment.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognized (such as an improvement in the
debtor’s credit rating), the previously recognized impairment loss is reversed by adjusting the
allowance account. Any subsequent reversal of impairment loss is recognized in income statement, to
the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date.
A write off is made when all or part of a loan is deemed uncollectible or in the case of debt
forgiveness. Such loans are written off after all the necessary procedures have been completed and the
amount of the loss has been determined. Write offs are charged against previously established
allowances and reduce the principal amount of a loan. Subsequent recoveries of amounts previously
written off are included in income.
For the purposes of a collective evaluation of impairment, financial assets are grouped on the basis of
similar credit risk characteristics. Those characteristics are relevant to the estimation of future cash
flows for groups of such assets by being indicative of the debtors’ ability to pay all amounts due
according to the contractual terms of the assets being evaluated.
Future cash flows in a group of financial assets that are collectively evaluated for impairment are
estimated on the basis of the contractual cash flows of the assets and the experience of Management in
respect of the extent to which amounts will become overdue as a result of past loss events and the
success of recovery of overdue amounts. Past experience is adjusted on the basis of current observable
data to reflect the effects of current conditions that did not affect past periods and to remove the effects
of past conditions that do not exist currently.
Group adopted Incurred but not reported (“IBNR”) model for performing loans, based on Basel II
expected loss concept with intrinsic elements such as loss detection period, probability of default, loss
given default and expert views. IBNR impairments on loans represent the provisions that are created
not only for transaction on which loss events were individually identified, but also for these
transactions where loss events have already occurred, but have not been reported yet. In such case
provision is created in such proportion to the exposure that reflects the amount of losses that have been
incurred as a result of the past but not reported events.
Assets carried at cost
If there is objective evidence that an impairment loss on an unquoted equity instrument that is not
carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is
linked to and must be settled by delivery of such an unquoted equity instrument has been incurred, the
amount of the loss is measured as the difference between the asset’s carrying amount and the present
value of its recoverable amount. There is no impairment recorded related to assets carried at cost.
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Available-for-sale financial assets
For available-for-sale financial investments, the Group assess at each balance sheet date if there is
objective evidence that an investments is impaired.
In the case of debt instruments classified as available-for-sale, the Bank assesses individually whether
there is objective evidence of impairment based on the same criteria as financial assets carried at
amortised cost. However, the amount recorded for impairment is the cumulative loss measured as the
difference between the amortised cost and the current fair value, less any impairment loss on that
investment previously recognized in the income statement. Future interest income is based on the
reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows
for the purpose of measuring the impairment loss. If, in a subsequent period, the fair value of a debt
instrument increases and the increase can be objectively related to a credit event occurring after the
impairment loss was recognized in the income statement, the impairment loss is reversed through the
income statement.
2.12 Cash and Cash Equivalents
For the purposes of the consolidated cash flow statement, cash and cash equivalents comprise cash and
balances with the Central Bank of Turkey, deposits with banks and other financial institutions and
other money market placements with an original maturity of three months or less.
2.13 Financial Liabilities
Financial liabilities including deposits from banks, due to customers and other borrowed funds are
recognised initially at cost. Subsequently, financial liabilities are stated at amortised cost, including
transaction costs, and any difference between net proceeds and the redemption value is recognised in
the income statement over the period of the financial liability using the effective interest method.
2.14 Employee Benefits
Defined Benefit Plans
In accordance with existing social legislation in Turkey, the Group is required to pay lump-sum
termination indemnities to each employee who has completed over one year of service with the Group
and whose employment is terminated due to retirement or for reasons other than resignation or
misconduct.
Such defined benefit plan is unfunded. The cost of providing benefits under the defined benefit plan is
determined using the projected unit credit method. All actuarial gains and losses are recognized in the
income statement.
Defined Contribution Plans
For defined contribution plans the Group pays contributions to the Social Security Institution of
Turkey on a mandatory basis. The Group has no further payment obligations once the contributions
have been paid. The contributions are recognized as employee benefit expense when they are due.
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(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2.15 Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. The
expense relating to any provision is presented in the income statement net of any reimbursement. If the
effect of the time value of money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money
and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognized as interest expense.
2.16 Share Capital
Share capital is recognized at the nominal amount and amounts received in excess of the par value are
recognized in share premium account. Incremental costs directly attributable to the issue of new shares
or options or to the acquisition of a business are shown in equity as a deduction.
2.17 Leases
Finance leases
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to
ownership of the leased item, are capitalized at the inception of the lease at the fair value of the leased
property or, if lower, at the present value of the minimum lease payments. Lease payments are
apportioned between the finance charges and reduction of the lease liability so as to achieve a constant
rate of interest on the remaining balance of the liability.
Finance charges are charged directly against income. Capitalized leased assets are depreciated over the
estimated useful life of the asset.
Operating leases
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating lease payments are recognized as an expense in the income
statement on a straight-line basis over the lease term. When an operating lease is terminated before the
lease period has expired, any payment required to be made to the lesser by way of penalty is
recognized as an expense in the period in which the termination takes place.
2.18 Income and Expense Recognition
Interest income and expense are recognized in the income statement for all interest bearing
instruments on an accrual basis using the effective interest method. The effective interest method is a
method of calculating the amortized cost of a financial asset or a financial liability (or group of
financial assets or financial liabilities) and of allocating the interest income or interest expense over
the relevant period.
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The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of the financial instrument or, when appropriate, a shorter period to the net
carrying amount of the financial asset or financial liability. When calculating the effective interest rate,
the Group estimates cash flows considering all contractual terms of the financial instrument but does
not consider future credit losses. The calculation includes all fees paid or received between parties to
the contract that are an integral part of the effective interest rate, transaction costs, and all other
premiums or discounts.
Fees and commissions are generally recognized on an accrual basis when the service has been
provided. Commission and fees arising from negotiating or participating in the negotiation of a
transaction for a third party are recognized on completion of the underlying transaction. Portfolio and
other management advisory and service fees are recognized based on the applicable service contracts.
Asset management fees and custody service fees that are continuously provided over an extended
period of time are recognized over the period service is provided. Fee for bank transfers and other
banking transaction services are recorded as income when collected. Borrowing fees and commissions
expenses paid to other financial institutions are recognized as transaction costs and recorded using the
“Effective interest rate method”.
Loans with principal and/or interest overdue for more than 90 days are considered as non-performing
and interest thereon is not recognized until collection.
2.19 Income Tax
Tax expense/(income) is the aggregate amount included in the determination of net profit or loss for
the period in respect of current and deferred taxes.
Income taxes currently payable
Current tax assets and liabilities for the current and prior periods are measured at the amount expected
to be recovered or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted by the balance sheet date.
Taxes other than on income are recorded within operating expenses (Note 28).
Deferred income taxes
Deferred income tax is provided in full, using the liability method, on all temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the financial
statements.
The rates enacted, or substantively enacted, at the balance sheet date are used to determine deferred
income tax. The principal temporary differences arise from measurement of financial assets and
liabilities at fair value, loan loss provisions and provision for employment termination benefits.
Deferred income tax liabilities and assets are recognised when it is probable that the future economic
benefit resulting from the reversal of temporary differences will flow to or from the Group. Deferred
income tax assets resulting from temporary differences are recognised to the extent that it is probable
that future taxable profit will be available against which the deferred income tax asset can be utilised
(Note 19).
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ABANK AT A GLANCE
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities, and deferred taxes related to the same taxable entity
and the same taxation authority.
Income tax relating to items recognized directly in equity is recognized in equity and not in the income
statement.
2.20 Derivative Financial Instruments
The Group enters into transactions with derivative instruments including forwards, swaps and options
in the foreign exchange and capital markets. Most of these derivative transactions are considered as
effective economic hedges under the Group's risk management policies; however since they do not
qualify for hedge accounting under the specific provisions of IAS 39, they are treated as derivatives
held-for-trading. Derivative financial instruments are initially recognized at fair value on the date
which a derivative contract is entered into and subsequently re-measured at fair value. Any gains or
losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are
recognized in the income statement.
Fair values are obtained from quoted market prices in active markets, including recent market
transactions, to the extent publicly available, and the fair value of financial instruments that are not
quoted in active markets are determined by using valuation techniques. If there is a valuation
technique commonly used by market participants to price the instrument and that technique has been
demonstrated to provide reliable estimates of prices obtained in actual market transactions, the Group
uses that technique. All derivatives are carried as assets when fair value is positive and as liabilities
when fair value is negative.
In the absence of forward foreign currency market rates and reliable forward rate estimations in a
volatile market, values of foreign currency forward and swap transactions are determined by
comparing the period end foreign exchange rates with the forward rates discounted to the balance
sheet date. The resulting gain or loss is reflected to the income statement. In determination of the fair
values of interest rate swaps, discounted values calculated using the fixed and floating interest rates
between the transaction date and re-pricing date are used. Changes in assumptions about these factors
could affect the reported fair values of financial instruments.
Embedded derivatives are separated from the host contract and accounted for as a derivative in
accordance with IAS 39, if and only if:
-
the economic characteristics and risks of the embedded derivative are not closely related to the
economic characteristics and risks of the host contract
a separate instrument with the same terms as the embedded derivative would meet the definition
of a derivative; and
the hybrid (combined) instrument is not measured at fair value with changes in fair value
recognised in profit or loss (i.e. a derivative that is embedded in a financial asset or financial
liability at fair value through profit or loss is not separated).
If an embedded derivative is separated, the host contract shall be accounted for under IAS 39 if it is a
financial instrument and in accordance with other appropriate standards if it is not a financial
instrument.
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2.21 Provisions, contingent assets and contingent liabilities
Provisions are recognised when the Group has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will be required to settle the obligation, and a
reliable estimate of the amount can be made.
Where the effect of the time value of money is material, the amount of a provision shall be the present
value of the expenditures expected to be required to settle the obligation. The discount rate reflects
current market assessments of the time value of money and the risks specific to the liability. The
discount rate shall be a pre-tax rate and shall not reflect risks for which future cash flow estimates
have been adjusted.
Possible assets or obligations that arise from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Group are not included in the consolidated financial statements and are treated as
contingent assets or liabilities.
2.22 Fiduciary Assets
Assets held by the Group in a fiduciary, agency or custodian capacity for its customers are not
included in the balance sheet, since such items are not treated as assets of the Group.
2.23 Acceptances
Acceptances comprise undertakings by the Group to pay bills of exchange drawn on customers, if the
latter fails to meet their obligation. Acceptances are accounted for as off-balance sheet transactions.
2.24 Other credit related commitments
In the normal course of business, the Group enters into other credit related commitments including
loan commitments, letters of credit and guarantees. These are reported as off-balance sheet items at
their notional amounts and are assessed using the same criteria as originated loans (Note 2.10).
Specific provisions are therefore established when losses are considered probable and recorded as
other provisions. The provision for credit related commitments also covers losses from the collective
assessment where the commitments are grouped using the internal models developed by the Group
stemming from the classification of credit related commitments into risk rating classes based on the
observation of a series of parameters related to the borrower and/or to the utilisation of the loan.
2.25 Segment Reporting
A business segment is a group of assets and operations engaged in providing products or services that
are subject to risks and returns that are different from those of other business segments. A
geographical segment is engaged in providing products and services within a particular economic
environment that are subject to risks and return that are different from those of segments operating in
other economic environments.
2.26 Related Parties
For the purpose of these consolidated financial statements, shareholders, companies controlled by or
affiliated with them and other companies within the Anadolu Group are considered and referred to as
related parties (Note 33).
18
ABANK AT A GLANCE
2.27 Adoption of New and Revised Standards
a.Standards, amendments and IFRICs applicable to 31 December 2012 year ends
Standard/
interpretation
IFRS 7
IFRS 1
IAS 12
Applicable for financial
Content
years beginning on/after
Financial instruments: Disclosures on transfers of assets
1 July 2011
First-time adoption of IFRS
1 July 2011
Income taxes
1 January 2012
•
IFRS 7 (amendment), “Financial instruments: Disclosures on transfers of assets”, is effective for
annual periods beginning on or after 1 July 2011. This amendment will promote transparency in
the reporting of transfer transactions and improve users’ understanding of the risk exposures
relating to transfers of financial assets and the effect of those risks on an entity’s financial position,
particularly those involving securitisation of financial assets. Comparative information is not
needed in the first year of adoption. Earlier adoption is permitted. The adoption of the amendment
results in additional disclosures but does not have an impact on the financial position or the
comprehensive income of the Group.
•
IFRS 1 (amendment), “First-time adoption of IFRS”, is effective for annual periods beginning on
or after 1 July 2011. The application of this amendment does not have any effect for the Group.
•
IAS 12 (amendment), “Income taxes” on deferred tax, is effective for annual periods beginning on
or after 1 January 2012. This amendment introduces an exception to the existing principle for the
measurement of deferred tax assets or liabilities arising on investment property measured at fair
value. The application of this amendment does not have any effect for the Group.
b.New IFRS standards, amendments and IFRICs effective after 1 January 2013
The Group has chosen not to adopt early the following standards and interpretations that were issued but
not yet effective for accounting periods beginning on 1 January 2013:
Standard/
interpretation
IAS 19
IAS 1
IFRS 10
IFRS 11
IFRS 12
IFRS 10, 11 and 12
IFRS 13
IAS 27
IAS 28
IFRS 7
IAS 32
IFRS 1
IFRS 9
IFRS 10
IFRIC 20
Applicable for financial
Content
years beginning on/after
Employee benefits
1 January 2013
Presentation of financial statements
1 July 2012
Consolidated financial statements
1 January 2013
Joint arrangements
1 January 2013
Disclosures of interests in other entities
1 January 2013
Transition guidance
1 January 2013
Fair value measurement
1 January 2013
Separate financial statements
1 January 2013
Associates and joint ventures
1 January 2013
Financial instruments: Disclosures
1 January 2013
Financial instruments: Presentation
1 January 2014
First time adoption’, on government loans
1 January 2013
Financial instruments: Classification and Measurement
1 January 2015
Amendment to Consolidated Financial Statements
1 January 2013
Stripping costs in the production phase of a surface mine
1 January 2013
19
FINANCIAL TABLES
85
86
•
IAS 19 (amendment), “Employee benefits”, is effective for annual periods beginning on or after
1 January 2013. These amendments eliminate the corridor approach and calculate finance costs on
a net funding basis. Early adoption is permitted. The Group is assessing the application of this
amendment.
•
IAS 1 (amendment), “Presentation of financial statements”, regarding other comprehensive
income is effective for annual periods beginning on or after 1 July 2012. The main change
resulting from these amendments is a requirement for entities to group items presented in ‘other
comprehensive income’ (OCI) on the basis of whether they are potentially reclassifiable to profit
or loss subsequently (reclassification adjustments). The amendments do not address which items
are presented in OCI. Early adoption is permitted. The application of this amendment does not
have any material effect for the Group.
•
IFRS 10, “Consolidated financial statements”, is effective for annual periods beginning on or after
1 January 2013. The standard builds on existing principles by identifying the concept of control as
the determining factor in whether an entity should be included within the consolidated financial
statements of the parent company. The Group is assessing the effects of the application of this
standard on the financial performance and position.
•
IFRS 11, “Joint arrangements”, is effective for annual periods beginning on or after 1 January
2013. IFRS 11 is a more realistic reflection of joint arrangements by focusing on the rights and
obligations of the arrangement rather than its legal form. Proportional consolidation of joint
ventures is no longer allowed. The application of this amendment does not have any effect for the
Group.
•
IFRS 12, “Disclosures of interests in other entities”, is effective for annual periods beginning on or
after 1 January 2013. The standard includes the disclosure requirements for all forms of interests
in other entities, including joint arrangements, associates, special purpose vehicles and other off
balance sheet vehicles. The Group is assessing the effects of the application of this standard on the
financial performance and position.
•
IFRS 10, 11 and 12 on transition guidance (amendment), is effective for annual periods beginning
on or after 1 January 2012. The amendment also provide additional transition relief in IFRSs 10,
11 and 12, limiting the requirement to provide adjusted comparative information to only the
preceding comparative period. The Group is assessing the effects of the application of this
standard on the financial performance and position.
•
IFRS 13, “Fair value measurement”, is effective for annual periods beginning on or after
1 January 2013. The standard aims to improve consistency and reduce complexity by providing a
precise definition of fair value and a single source of fair value measurement and disclosure
requirements for use across IFRSs. The requirements, which are largely aligned between IFRSs
and US GAAP, do not extend the use of fair value accounting but provide guidance on how it
should be applied where its use is already required or permitted by other standards within IFRSs
or US GAAP. The adoption of the amendment results in additional disclosures but is not expected
to have an impact on the financial position or the comprehensive income of the Group.
•
IAS 27 (revised), “Separate financial statements”, is effective for annual periods beginning on or
after 1 January 2013. The standard includes the provisions on separate financial statements that
are left after the control provisions of IAS 27 have been included in the new IFRS 10. The Group
is assessing the effects of the application of this standard on the financial performance and
position.
20
ABANK AT A GLANCE
•
IAS 28 (revised), “Associates and joint ventures”, is effective for annual periods beginning on or
after 1 January 2013. The standard includes the requirements for joint ventures, as well as
associates, to be equity accounted following the issue of IFRS 11. The application of this revision
does not have any effect for the Group.
•
IFRS 7 (amendment), “‘Financial instruments: Disclosures’, on offsetting financial assets and
financial liabilities”, is effective for annual periods beginning on or after 1 January 2013. The
amendment reflects the joint IASB and FASB requirements to enhance current offsetting
disclosures. These new disclosures are intended to facilitate comparison between those entities
that prepare IFRS financial statements and those that prepare US GAAP financial statements. The
application of this amendment does not have any material effect for the Group.
•
IAS 32 (amendment), “‘Financial instruments: Presentation’, on offsetting financial assets and
financial liabilities”, is effective for annual periods beginning on or after 1 January 2014. The
amendment updates the application guidance in IAS 32, ‘Financial instruments: Presentation’, to
clarify some of the requirements for offsetting financial assets and financial liabilities on the
balance sheet. The application of this amendment does not have any material effect for the Group.
•
IFRS 1 (amendment), “‘First time adoption’, on government loans”, is effective for annual periods
beginning on or after 1 January 2013. The application of this amendment does not have any effect
for the Group.
•
Annual Improvements to IFRSs 2011 is effective for annual periods beginning on or after
1 January 2013. Amendments affect five standards: IFRS 1, IAS 1, IAS 16, IAS 32 and IAS 34.
•
IFRS 9, “Financial instruments: Classification and Measurement”, is effective for annual periods
beginning on or after 1 January 2015. The standard addresses the classification, measurement and
recognition of financial assets and financial liabilities. It replaces the parts of IAS 39 that relate to
the classification and measurement of financial instruments. The Group is assessing the effects of
the application of this standard on the financial performance and position.
•
IFRS 10, (amendment) “Consolidated Financial Statements”, IFRS 12 and IAS 27 for investment
entities is effective for annual periods beginning on or after 1 January 2013. The Group is
assessing the effects of the application of this standard on the financial performance and position.
•
IFRIC 20, “Stripping costs in the production phase of a surface mine” is effective for annual
periods beginning on or of 1 January 2013. The application of this amendment does not have any
effect for the Group.
2.28 Earnings per share
Earnings per share disclosed in the consolidated income statement are determined by dividing net
income by the weighted average number of shares outstanding during the year concerned.
2012
2011
Profit attributable to equity holders of the Bank
Weighted average number of ordinary shares in issue (thousand)
79,682
374,754
20,782
300,000
Basic earnings per share (expressed in TL per 1,000 share)
0.21262
0.06927
21
FINANCIAL TABLES
87
88
2.29 Comparatives
Comparative figures are reclassified, where necessary, to conform to changes in presentation of the
31 December 2012 consolidated financial statements.
The Company has prepared certain reclassifications in the financial statement at 31 December 2011 in
order to conform to presentation of financial statements at 31 December 2012:
a)
b)
c)
Checks in clearance accounted under “Other Assets” and “Other Liabilities” amounting to TL
36,670 have been offset.
“Other provision expenses” amounting to TL 276 has been reclassified to operating expenses in
the income statement.
Expenses reimbursed from the customers accounted under “Other operating income” amounting
to TL 7,073 have been netted from “Other operating expenses” in the income statement.
NOTE 3 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING
ACCOUNTING POLICIES
The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities
within the next financial year. Estimates and judgements are continually evaluated and are based on
Management’s experience and other factors, including expectations of future events that are believed
to be reasonable under the circumstances. Management also makes certain judgements, apart from
those involving estimations, in the process of applying the accounting policies. These disclosures
supplement the commentary significant accounting policies (Note 2) and financial risk management
(Note 4). Judgements that have the most significant effect on the amounts recognised in the
consolidated financial statements and estimates that can cause a significant adjustment to the carrying
amount of assets and liabilities within the next financial year include:
Held-to-maturity financial assets. Management applies judgement in assessing whether financial
assets can be categorised as held-to-maturity, in particular its intention and ability to hold the assets to
maturity. If the Group fails to keep these investments to maturity other than for certain specific
circumstances - for example, selling an insignificant amount close to maturity - it will be required to
reclassify the entire class as available-for-sale. The investments would therefore be measured at fair
value rather than amortised cost.
Impairment losses on loans and advances. The methodology and assumptions used for estimating
both the amount and timing of future cash flows from a portfolio of loans are reviewed regularly to
reduce any differences between loss estimates and actual loss experience. To the extent that the
present value of estimated cash flows differ by +/- 5% the provision would be estimated TL 3,189
(2011: TL 3,275) higher or lower. The Group calculated IBNR provision which combines the Basel II
concept of expected loss with intrinsic elements such as loss detection period and expert views.
Fair value of derivatives. Where valuation techniques (for example, models) are used to determine
fair values, they are validated and periodically reviewed. To the extent practical, models use only
observable data, however areas such as credit risk (both own and counterparty), volatilities and
correlations require Management to make estimates. Changes in assumptions about these factors could
affect reported fair values. Changing the assumptions not supported by observable market data to a
reasonably possible alternative would not result in a significantly different profit, income, total assets
or total liabilities.
Tax legislation. Turkish tax, currency and customs legislation is subject to varying interpretations as
disclosed in Note 19.
22
ABANK AT A GLANCE
NOTE 4 - FINANCIAL RISK MANAGEMENT
Strategy in using financial instruments
To maintain and improve the soundness of its operations, the Bank accords top management priority to
upgrading its risk management systems and capabilities.
Risk Management is responsible for monitoring and managing all potential risks for the Bank in a
centralized and efficiently coordinated manner. The primary goal of Risk Management is to provide
business lines appropriate capital allocation for risks they are exposed to and increase value-added by
maximizing risk adjusted return on capital. In this connection, each business line is geared to design
appropriate cost-benefit schedule to maximize its return expectation with minimum cost of capital.
The Bank’s Risk Management Policy covers market, structural interest rate, credit, operational and
liquidity risks management.
The risk management governance at the Bank starts with the Board of Directors. The Bank Risk
Committee, Asset Liability Committee (ALCO), Credit Risk Committee (CRC), Market Risk
Committee (MRC), Operational Risk Committee (ORC) and the Risk Management Department are the
most important bodies of the risk management structure.
The Board of Directors determines the general risk policy and the risk appetite of the Bank. The Bank
Risk Committee defines risk policies and strategies, reviews all types of risks the Bank is exposed to
in its quarterly meetings, monitors the implementation of the risk management strategies and brings
the important risk issues to the attention of the Board. The ALCO, meeting bi-weekly, is responsible
for monitoring and managing any structural asset liability mismatch of the Bank, as well as monitoring
and controlling liquidity risk and foreign currency exchange rate risk. The CRC meets quarterly and is
responsible for monitoring and evaluating the Bank’s lending portfolio and determining principles and
policies regarding credit risk management processes, such as loan approval, limit setting, rating,
monitoring and problem management. The MRC is responsible for implementing risk policies
regarding both the trading book and the investment book and establishing relevant control systems. In
addition, it defines certain limits and regularly reviews these in order to limit and minimize the
potential adverse effects of market conditions on the Bank’s profitability and economic value. The
ORC also meets quarterly and is responsible for reviewing the Bank’s operational risks and defining
the necessary actions to be taken to minimize these risks.
A.
Credit risk
Credit risk is defined as the potential loss arising from a borrower’s inability to meet its financial
obligations to the Bank. Credit risk is the risk of highest concern due to its large presence on the
balance sheet. Consequently, the Bank’s credit risk management framework was designed in a manner
to ensure that non-performing loans are kept as low as possible. In order to keep the quality of the
Bank’s credit portfolio at a predefined level, the credit portfolio is regularly analyzed and reported in
terms of economic sectors, large exposures, rating distribution, collateral structure, non-performing
loans amount, and other various aspects. In measuring credit risk, the Bank estimates the probability of
default and the potential size of loss in the event of such default. Probability of default is generated by
the Bank’s internal rating tool and outputs for potential size of loss are derived from assessments of
collateral quality and recovery rates. This grading process draws upon a scorecard containing
quantitative and qualitative measures and the expertise of the Bank’s credit officers. The validation
and ongoing monitoring of the grading models are the responsibilities of the Risk Management
Department and depending on validation results models are continuously reviewed and improved if
necessary.
The Group have no derivative loan instruments e.g.
23
FINANCIAL TABLES
89
90
NOTE 4 - FINANCIAL RISK MANAGEMENT (Continued)
Credit quality per class of financial assets is as follows;
a.
Information on loans and receivables past due but not impaired:
2012
Past due up to 30 days
Past due 30-60 days
Past due 60-90 days
Total
2011
Past due up to 30 days
Past due 30-60 days
Past due 60-90 days
Total
b.
Corporate
24,130
7,008
2,802
SME
36,246
3,824
6,265
Consumer
12,511
4,445
3,413
Credit Card
-
Total
72,887
15,277
12,480
33,940
46,335
20,369
-
100,644
Corporate
44,882
67,969
-
SME
66,629
75,464
2,741
Consumer
6,173
833
1,152
Credit Card
-
Total
117,684
144,266
3,893
112,851
144,834
8,158
-
265,843
Information on debt securities, treasury bills and other bills:
2012
Financial Assets
at Fair Value
through P/L (Net)
Available for Sale
Financial Assets
(Net) (*)
Held to Maturity
Securities (Net)
Total
7,380
783,046
1,045,707
1,836,133
Unrated
22,340
-
-
22,340
Total
29,720
783,046
1,045,707
1,858,473
Fitch’s Rating
BBB-
(*)
Available for sale investments consist of Yapı ve Kredi Bankası A.Ş. bonds amounted to TL 37,905 and İş Bank
bonds amounting to TL 19,272.
2011
Fitch’s Rating
BB+
Financial Assets
at Fair Value
through P/L (Net)
Available for Sale
Financial Assets
(Net)
Held to Maturity
Securities (Net) (*)
Total
161,601
290,592
828,300
1,280,493
13,281
-
-
13,281
174,882
290,592
828,300
1,293,774
Unrated
Total
(*)
c.
Held-to-maturity investments consist of Yapı ve Kredi Bankası A.Ş. bonds amounting to TL 42,020.
Information on rating concentration:
Credit risk of the Bank is evaluated via internal assessment system. Loans are graded on the
basis of their probability of default, are aligned from highest (the best) ratings to lowest (substandard) ratings as below and non-performing loans (impaired ones) are shown at the bottom of
the table.
The rating category named as ''high'' indicates that debtor has a sound financial structure, the
category ''standard'' displays that debtor has a good and satisfactory financial structure, while the
category named as ''sub-standard'' indicates that debtor's financial position is not sound.
High Grade (A,B)
Standard Grade (C)
Sub Standard Grade (D)
Impaired (E)
Not rated
24
2012
2011
55.38%
37.30%
4.04%
0.50%
2.78%
49.32%
46.26%
3.59%
0.65%
0.17%
ABANK AT A GLANCE
d.
Fair value of collaterals (loans and advances to customers):
Collateral mainly comprises the following: cash funds, deposits, mortgages of real estate at the
land registry and mortgages of real estate built on allocated land, export documents, guarantees,
and acceptances and pledge on vehicles.
2012
Corporate
SME
Consumer
Total
37,674
80,434
62,700
131,045
24,877
490
125,251
211,969
Total
118,108
193,745
25,367
337,220
2011
Corporate
SME
Consumer
Total
Watch listed loans
Loans under legal follow - up
181,779
388,729
191,549
273,301
8,604
1,117
381,932
663,147
Total
570,508
464,850
9,721
1,045,079
Watch listed loans
Loans under legal follow - up
Type of Collaterals
Real-estate mortgage
Car pledge
Cash and cash equivalents
Other
2012
316,936
3,271
2,179
14,834
2011
976,477
851
1,105
66,646
Total
337,220
1,045,079
e.
Concentration of credit risk based on geographical regions:
Turkey
Cash and balances with the Central Bank of Turkey 627,297
52,780
-Trading securities
50,255
2,497
Loans and advances to customers, net
- Corporate
2,150,796
- SME
2,741,920
- Consumer
191,771
-Credit card
5,968
783,046
- Held-to-maturity
1,045,707
19,741
21,165
26,665
Other assets
78,907
EU
11,907
Other
8,927
Total
627,297
73,614
9,708
-
50,255
12,205
11,880
-
41,614
-
2,204,290
2,741,920
191,771
5,968
9,955
-
783,046
1,045,707
19,741
21,165
26,665
88,862
As of 31 December 2012
7,798,515
43,450
50,541
7,892,506
6,294,286
78,309
28,851
6,401,446
Letter of guarantees
Letter of credits
Acceptance credits
1,675,583
305,450
28,179
-
-
1,675,583
305,450
28,179
2,009,212
-
-
2,009,212
2,164,639
-
-
2,164,639
25
FINANCIAL TABLES
91
92
f.
Sectoral concentration:
2012
Cash
2011
Cash
Non-cash
Non-cash
Trade
Finance
Construction
Textile
Production
Iron and Steel
Transportation
Mining
Food and Beverage
Automotive
Tourism
Forest Product and Agriculture
Machinery
Chemical
Paper
Petroleum
Electrics and Electronics
Others
1,362,307
558,971
567,055
361,882
308,822
198,439
208,263
112,657
281,065
114,396
111,814
163,992
97,877
109,473
32,898
52,592
21,584
452,014
437,243
88,796
498,590
104,829
136,938
162,306
84,019
13,997
85,205
41,532
9,624
37,758
61,915
25,420
4,179
52,386
13,874
150,601
1,168,142
106,159
451,216
305,461
327,541
179,285
215,119
111,089
191,108
120,046
126,760
131,697
88,233
91,734
33,154
51,858
30,390
501,813
511,702
64,575
443,428
124,282
168,646
189,938
88,163
25,454
102,739
41,328
4,803
48,477
61,239
35,579
16,867
51,880
6,890
178,649
Total
5,116,101
2,009,212
4,230,805
2,164,639
Loans in arrears
Allowance for individually impaired loans
Allowance for collectively impaired loans
Total
g.
234,001
(105,709)
(100,444)
5,143,949
2,009,212
214,311
(108,130)
(56,141)
4,280,845
2,164,639
Carrying amounts per class of financial assets whose terms have been renegotiated:
- Corporate lending
- Small business lending
- Consumer lending
2012
2011
66,986
-
6,707
16
-
Total
66,986
6,723
B.
Market Risk
Market risk is the risk of potential loss arising from the adverse effects of interest rates, exchange rates
and equity price volatility inherent in the Bank's trading portfolio. The Bank calculates the regulatory
capital requirement for market risk using the standardized method within the framework of Banking
Regulatory and Supervision Agency guidelines. In accordance with international best practices, Value
at Risk (VaR) is measured daily. VaR, which is a measure of the maximum potential loss on the
trading portfolio, is calculated using the historical simulation VaR method, adjusted for EWMA
(Exponentially Weighted Moving Average). In order to manage the market risk efficiently and to be
consistent with the risk appetite, position limits for asset classes, an overall "Bank Risk Tolerance" and
VaR limits for each risk factor are determined. Limit monitoring is done daily by the Risk
Management Group. VaR results are supported by regular stress tests and scenario analysis.
The Bank utilizes back testing to verify the predictive power of the value-at-risk calculations. In back
testing, theoretical gains/losses calculated by VAR on positions at the close of each business day are
compared with the actual gains/losses arising from these positions on the next business day. The
assumptions used in the VaR model are reviewed and revised as needed based on the results of the
back testing process.
26
ABANK AT A GLANCE
C.
Currency Risk
Foreign exchange exposure is the result of the mismatch of foreign currency denominated assets and
liabilities (including foreign currency indexed ones) together with exposures resulting from offbalance sheet foreign exchange derivative instruments. The Group takes on exposure to the effects of
fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flows.
The table below summarizes the Group’s exposure to foreign currency exchange rate risk..Included in
the table are the Group’s assets and liabilities at carrying amounts, categorised by currency. The offbalance sheet gap represents the difference between the notional amounts of purchase and sale foreign
currency derivative financial instruments.
2012
US$
Assets
Cash and balances with the Central Bank of Turkey 181,765
42,071
708
3,057
(1)
981,788
155,854
- Held- to- maturity
Other assets
9,964
EUR
Foreign currency
Other
Total
TL
Total
79,897
6,727
63,706
6,378
325,368
55,176
301,929
18,438
627,297
73,614
10
1,122
628,983
50
638
718
4,229
1,611,409
49,537
7,976
3,532,540
50,255
12,205
5,143,949
-
-
155,854
9,964
627,192
1,045,707
19,741
21,165
26,665
78,898
783,046
1,045,707
19,741
21,165
26,665
88,862
1,375,207
716,739
70,772
2,162,718
5,729,788
7,892,506
76,116
932,025
756,548
2,939
25,647
19
240,209
482,276
1,400
17,028
9,722
94
23
76,135
1,181,956
1,238,824
4,433
42,698
1,360,790
2,987,570
49,767
146,263
16,589
4,959
29,420
4,878
748,224
1,436,925
4,169,526
1,288,591
146,263
21,022
4,959
29,420
4,878
790,922
1,793,275
740,932
9,839
2,544,046
5,348,460
7,892,506
(418,068)
(24,193)
60,933
(381,328)
381,328
-
Off-balance sheet derivative
instruments net notional position
394,663
70,435
(81,646)
383,452
(382,891)
561
Net foreign currency position
(23,405)
46,242
(20,713)
2,124
(1,563)
561
819,459
929,127
2,183
13,541
(263,049)
(109,668)
(11,358)
286,332
115,726
23,283
6,058
Total assets
Liabilities
Deposits from banks
Due to customers
Other borrowed funds and subordinated debt
Other provisions
Other liabilities
Total liabilities
Net balance sheet position
2011
Total assets
Total liabilities
Net balance sheet position
Off-balance sheet derivative
instruments net notional position
Net foreign currency position
(1)
1,386,751
1,649,800
2,208,393
2,592,468
4,193,053
3,808,978
6,401,446
6,401,446
(384,075)
384,075
-
12,185
414,243
(386,674)
27,569
827
30,168
(2,599)
27,569
Collective impairment allowance of TL 100,444 (2011: TL 56,141) is presented as TL balance in the above currency position table.
27
FINANCIAL TABLES
93
94
At 31 December 2012, assets and liabilities denominated in foreign currency were translated into TL
using a foreign exchange rate of TL1.7776=US$1, and TL2,3452=EUR1 (2011: TL1.9065=US$1, and
TL2.4592=EUR1).
For the purpose of calculating currency risks, foreign currency indexed loans and securities have been
reported in table above in the relevant currency of indexation.
Foreign currency sensitivity
The Group is mainly exposed to EUR and USD currencies.
The following table details the Group’s sensitivity to a 10% increase and decrease in the TL against
the relevant foreign currencies. A positive number indicates an increase in profit or loss and other
equity where the TL strengthens against the relevant currency.
2012
USD
EUR
2011
USD
EUR
D.
Change in foreign
currency
(+/-)10%
(+/-)10%
Effect of profit / loss
+/- 4,410
+/- 4,624
Effect of equity
+/- 4,410
+/- 4,624
Change in foreign
currency
(+/-)10%
(+/-)10%
Effect of profit / loss
+/- 2,379
+/- 606
Effect of equity
+/- 2,379
+/- 606
Interest Rate Risk
Even though the Bank is exposed to structural interest rate risk on its balance sheet due to the nature of
its existing activities, it ensures that this risk remains within pre-defined limits. The ALCO aims to
protect the economic value of equity, while sustaining a stable earnings profile. Duration/GAP
analyses, which rely on calculations of net discounted future cash flows of interest rate sensitive
balance sheet items, are conducted to manage this risk.
The bank runs net economic value sensitivity scenarios with changes in interest rates and interest rate
margins, so as to calculate their impact on net economic value, as defined in the relevant regulation
published by BRSA. Beside the BRSA standard interest rate shock scenario, other internally defined
scenarios are also simulated.
Trading and non-trading risks are approved separately in the policy documents and the Market Risk
Committee is given discretion in defining the tools and methodology used in measuring, monitoring
and managing both trading and non-trading risks.
28
ABANK AT A GLANCE
Interest rate sensitivity:
Applied Shock
(+/- x basis
point)
2012
Currency
1. TRY
2. TRY
3. USD
4. USD
5. EUR
6. EUR
Total (for negative shocks)
Total (for positive shocks)
(+) 500bp
(-) 400bp
(+) 200bp
(-) 200bp
(+) 200bp
(-) 200bp
Gains/
Losses
Gains/Shareholders’
Equity -Losses/
Shareholders’ Equity
(66,520)
60,293
742
85
(5,729)
7,752
68,130
(71,507)
(7.77%)
7.04%
0.09%
0.01%
(0.67)
0.90%
7.95%
(8.35%)
The table below summarises the Group’s exposure to interest rate risk at 31 December 2012 and
2011. Included in the table are the Group’s assets and liabilities in carrying amounts classified in terms
of periods remaining to contractual repricing dates.
2012
Up to
3 months
3 months
to 1 year
1 year to
5 years
Over
5 years
Non-interest
bearing
Total
-
-
-
627,297
39,666
627,297
73,614
Assets
33,948
8,794
9,970
3,771,916
730,424
- Held-to-maturity
732,493
Other assets
417
13,585
1,779
502,948
7,197
456
684,384
122
156,855
20,557
27,846
50,255
12,205
5,143,949
52,622
313,214
-
-
-
19,741
21,165
26,665
88,445
783,046
1,045,707
19,741
21,165
26,665
88,862
Total assets
5,287,962
884,148
692,037
156,977
871,382
7,892,506
Liabilities
Deposits from banks
Due to customers
Other provisions
Other liabilities
1,435,993
3,724,201
190,142
10,235
472
100,720
767,852
146,263
2,920
-
7,947
73,107
7,867
-
257,490
-
932
336,658
4,959
29,420
4,878
790,450
1,436,925
4,169,526
1,288,591
146,263
21,022
4,959
29,420
4,878
790,922
Total liabilities
5,361,043
1,017,755
88,921
257,490
1,167,297
7,892,506
603,116
(100,513)
Net interest repricing gap
(73,081)
(133,607)
29
(295,915)
-
FINANCIAL TABLES
95
96
2011
Up to
3 months
Assets
88,290
11,334
31,549
2,992,698
61,339
- Held-to-maturity
535,887
Other assets
204
3 months
to 1 year
1 year to
5 years
Over
5 years
Non-interest
bearing
Total
-
-
-
503,029
23,360
503,029
111,650
112,520
14,184
542,813
4,028
525,004
46,911
160,072
24,528
60,258
199,321
45,733
4,280,845
55,814
292,413
10
43,265
-
130,174
-
3,442
24,237
8,248
105,835
290,592
828,300
3,442
24,237
8,248
106,049
Total assets
3,721,301
1,017,754
572,297
337,157
752,937
6,401,446
Liabilities
Deposits from banks
Due to customers
Other provisions
Other liabilities
654,490
3,179,053
658,629
140
8,267
4,477
5,719
133,532
680,378
216
15,574
5,116
84
15,801
-
346
334,886
3,915
15,654
4,081
681,088
660,555
3,647,555
1,339,007
356
23,841
3,915
15,654
4,081
706,482
Total liabilities
4,505,056
840,535
15,885
-
1,039,970
6,401,446
177,219
556,412
337,157
Net interest repricing gap
(783,755)
(287,033)
-
The table below summarises weighted average interest rates for financial instruments by major
currencies outstanding at 31 December 2012 and 2011 based on yearly contractual rates.
2012
Assets
- Held-to-maturity
Liabilities
Deposits from banks
Due to customers
and subordinated debt
2011
US$ (%)
EUR (%)
TL (%)
0.45
5.18
3.76
5.33
2.94
10.47
0.30
5.50
0.83
10.79
4.14
6.68
6.32
7.02
8.67
13.70
6.00
7.72
7.91
9.54
8.95
17.83
3.40
3.14
8.34
3.90
5.27
4.94
11.54
3.99
-
3.47
-
7.90
7.04
2.71
-
3.44
-
7.34
-
30
US$ (%) EUR (%)
TL (%)
ABANK AT A GLANCE
E.
Liquidity Risk
Liquidity risk refers to the possibility of an institution being unable to access necessary funds due to
declining fund-raising capacity; The Group closely monitors its overall liquidity level and operates
under strict limits based on stress conditions. To address liquidity risk, the Group has adopted a
unified approach to TL and foreign currency fund-raising opportunities. The key limit puts a ceiling on
the share of overnight borrowing in the current funding pool and acts as a warning signal for the senior
management to adjust the composition and/or the pricing of the borrowing instruments.
The Group uses domestic and foreign markets for its liquidity needs, Low level of liquidity needs
enables an easy way of loan borrowing from the corresponding markets (Central Bank of the Republic
of Turkey (“CBRT”), ISE, Interbank money market, ISE Settlement and Custody Bank and other
markets). The potential cash resources are: money market debts which can be obtained from the
domestic banks and repurchase transactions in foreign markets with Eurobonds in the portfolio.
The Group’s fund resources consist mainly of deposits. The investments portfolio consists mainly of
the held to maturity investments.
The liquidity position is assessed and managed under a variety of scenarios, giving due consideration
to stress factors relating to both the market in general and specifically to the Group. In accordance
with the “Communiqué on the Measurement and Assessment of Liquidity of the Banks”, liquidity
ratio of the banks on a weekly and monthly basis should not be less than 80% for foreign currency
denominated assets and liabilities, and for total assets and liabilities it should not be less than 100%.
Liquidity ratios as at 31 December 2012 and 2011 are represented below;
2012
Average (%)
Highest (%)
Lowest (%)
2011
Average (%)
Highest (%)
Lowest (%)
Primary Maturity Segment
FX
FX + TL
167.18
155.03
294.05
204.65
120.39
126.28
Secondary Maturity Segment
FX
FX + TL
130.79
120.74
186.82
176.75
103.75
107.38
Stock Values
FX + LT
13.30
17.11
11.07
Primary Maturity Segment
FX
FX + TL
222.11
196.05
415.32
255.04
146.63
149.26
Secondary Maturity Segment
FX
FX + TL
146.59
135.96
232.20
155.77
105.15
110.34
Stock Values
FX + LT
11.86
13.81
8.82
31
FINANCIAL TABLES
97
98
The following table presents the cash flows payable by the Group under non-derivative financial
liabilities remaining contractual maturities at the balance sheet date. The amounts disclosed in the
table are the contractual undiscounted cash flows, whereas the Group manages the inherent liquidity
risk based on expected undiscounted cash inflows.
2012
Demand
and up to 3
months
3 months
to 1 year
1 year to
5 years
Over
5 years
Total
Liabilities
Deposits from banks
Due to customers
1,437,474
4,077,444
102,226
-
102,357
734,212
150,000
8,532
148,974
-
435,694
-
1,437,474
4,188,333
1,421,106
150,000
Total liabilities
5,617,144
986,569
157,506
435,694
7,196,913
Demand
and up to 3
months
3 months
to 1 year
1 year to
5 years
Over
5 years
Total
Liabilities
Deposits from banks
Due to customers
654,913
3,522,277
141,427
5,719
141,567
661,374
94
226,632
502,275
660,632
3,663,938
1,531,708
Total liabilities
4,318,617
808,660
226,726
502,275
5,856,278
2011
The following table represents the outstanding derivative cash flows of the Group on undiscounted
contractual maturity basis:
Derivatives settled on a gross basis
2012
Up to 1
month
Derivatives held for trading:
Foreign exchange derivatives:
- Outflow
1,201,975
- Inflow
1,201,672
Interest rate derivatives:
- Outflow
- Inflow
-
1-3
months
3-12
months
1-5
years
Over 5
years
Total
382,286
380,131
257,691
252,544
26,583
12,845
80,484
40,001
1,949,019
1,887,193
2,391
1,757
5,750
4,875
4,003
3,530
615
460
12,759
10,622
Total outflow
1,201,975
384,677
263,441
30,586
81,099
1,961,778
Total inflow
1,201,672
381,888
257,419
16,375
40,461
1,897,815
Up to 1
month
1-3
months
3-12
months
1-5
years
Over 5
years
Total
670,706
665,501
358,437
362,816
565,837
580,296
11,700
19,065
-
1,606,680
1,627,678
-
1,542
2,095
4,643
6,602
4,592
6,597
-
10,777
15,294
Total outflow
670,706
359,979
570,480
16,292
-
1,617,457
Total inflow
665,501
364,911
586,898
25,662
-
1,642,972
2011
Derivatives held for trading:
Foreign exchange derivatives:
- Outflow
- Inflow
Interest rate derivatives:
- Outflow
- Inflow
32
ABANK AT A GLANCE
F.
Operational risk
Operational risk is defined as the risk of direct or indirect loss resulting from inadequate or failed
internal processes, people and systems or from external events.
Operational Risk is managed based on a framework for identifying, measuring, monitoring and
managing all risks within the scope of the definition of operational risk. The Bank’s risk management
and internal controls allow it to control and minimize operational risks effectively under a detailed set
of written procedures. These procedures are readily accessible and continuously updated and include
procedures to handle all contingency events.
Studies of activity-based operational risks are continuing through the Risk Control Self Assessment.
These are categorized according to cause, event and effect categories as proposed by Basel II, and
action has been taken for severe risks.
The Business Continuity Management Plan, prepared in order to minimize losses due to business
disruption, has been implemented. Comprehensive annual testing of the Disaster Recovery Center
(DRC) is conducted with the participation of business units and IT.
For the regulatory purposes and consideration in statutory capital adequacy ratio, on a consolidated
base the Group calculates the amount subject to operational risk with the basic indicator method in
accordance with the Section 4 of the “ Regulation Regarding Measurement and Evaluation of Banks’
Capital Adequacy Ratio” published in the Official Gazette No, 28337 dated 28 June 2012, namely
“The Calculation of the Amount Subject to Operational Risk”, based on the gross income of the Group
for the years ended 2011, 2010 and 2009, As of 31 December 2012, the total amount subject to
operational risk is calculated as TL 470,605 (2011: TL 445,848) and the amount of the related capital
requirement is TL 37,648 (2011: TL 35,668).
G.
Capital management
Banks in Turkey are required to comply with capital adequacy guidelines promulgated by the BRSA,
which are based upon the standards established by the Bank of International Settlements (“BIS”),
These guidelines require banks to maintain adequate levels of regulatory capital against risk-bearing
assets and off-balance sheet exposures.
A bank’s capital adequacy ratio is calculated by taking the aggregate of its Tier I capital (which
comprises paid-in capital, reserves, retained earnings and profit for the current periods minus period
loss (if any)) its Tier II capital (which comprises general loan and free reserves, revaluation funds and
subordinated loans obtained) and its Tier III capital (which comprises certain qualified subordinated
loans in accordance with BIS guidelines) minus deductions (which comprises participations to
financial institutions, special and preliminary and pre-paid expenses, subordinated loans extended,
goodwill and capitalized costs), and dividing this aggregate by risk weighted assets, which reflect both
credit risk and market risk, In accordance with these guidelines, banks must maintain a total capital
adequacy ratio of a minimum of 8%.
The Bank and its individually regulated operations have complied with externally imposed capital
requirements throughout the period.
33
FINANCIAL TABLES
99
100 ABank 2012 ANNUAL REVIEW
The Group’s regulatory capital position on a consolidated basis is as follows:
2012
2011
Tier I capital
Tier II capital
Deductions
550,693
327,174
107
495,020
281,107
518
Total regulatory capital
877,760
775,609
5,463,141
141,975
470,605
5,072,733
150,013
445,848
14.45
13.68
Amount subject to credit risk
Amount subject to market risk
Amount subject to operational risk
Capital adequacy ratio (%)
H.
Fair value of financial instruments
Fair value is the amount at which a financial instrument could be exchanged in a current transaction
between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted
market price, if one exists.
The estimated fair values of financial instruments have been determined by the Group using available
market information and appropriate valuation methodologies. However, judgement is necessarily
required to interpret market data to develop the estimated fair value. Accordingly, the estimates
presented herein are not necessarily indicative of the amounts the Group could realise in a current
market exchange.
The following table summarises the carrying amounts and fair values of those financial assets
and liabilities not presented on the Group’s balance sheet at their fair value.
Carrying
value
2012
2011
Fair
value
Carrying
value
Fair
value
73,614
1,045,707
5,143,949
73,614
1,074,978
5,052,611
111,650
828,300
4,280,845
111,650
823,689
4,630,672
1,436,925
4,169,526
1,436,925
4,141,282
660,555
3,647,555
660,666
3,662,749
1,288,591
146,263
1,279,708
142,976
1,339,007
-
1,481,984
-
Financial assets:
Investment securities (held-to-maturity)
Financial liabilities:
Deposits from banks
Due to customers
and subordinated debt
34
ABANK AT A GLANCE
The following methods and assumptions were used to estimate the fair value of the Group’s financial
instruments:
The fair value of overnight deposits is considered to approximate its carrying amounts. The estimated
fair value of long term interest bearing placements is based on discounted cash flows using prevailing
money market interest rates at the balance sheet date with similar credit risk and remaining maturity.
Loans and advances to customers are net of allowances for impairment. The estimated fair value of
loans and advances to customers represent the discounted amount of estimated future cash flows
expected to be received. Expected cash flows are discounted at current market rates with similar credit
risk, currency and remaining maturity to determine their fair value.
Fair value for held-to-maturity securities is based on market prices or prices prevailing at the balance
sheet date announced by the ISE.
Due to customers, deposits from banks, other borrowed funds
The estimated fair value of deposits with no stated maturity, which includes non-interest bearing
deposits, is the amount repayable on demand.
The estimated fair value of other borrowings and debt securities in issue without quoted market price
is of estimated future cash flows expected to be paid using money market interest rates prevailing at
the balance sheet date with similar credit risk, currency and remaining maturity.
The estimated fair value of interest bearing liabilities due to customers is based on discounted cash
flows of estimated future cash flows expected to be paid.
Fair value hierarchy
IFRS 7 requires classification of line items at fair value presented at financial statements according to
the defined levels. These levels depend on the observability of data used during fair value calculations;
Classification for fair value is generated as below:
Level 1: Assets or liabilities with prices recorded (unadjusted) in active markets
Level 2: Assets or liabilities that are excluded in the Level 1 of recorded prices directly observable by
prices or indirectly observable derived through prices observable from similar assets or liabilities
Level 3: Assets and liabilities where no observable market data can be used for valuation
There are not any significant transfers between Level 1 and Level 2 of the fair value hierarchy.
According to these classification principles stated, the Group’s classification of financial assets and
liabilities carried at their fair value are as follows:
35
FINANCIAL TABLES
101
Assets and liabilities measured at fair value
2012
- Debt securities
- Derivatives
- Equity securities
- Investments securities - debt
Level 1
Level 2
Level 3
Total
29,720
20,535
12,205
-
-
29,720
12,205
20,535
783,046
-
-
783,046
Total assets
833,301
12,205
-
845,506
Financial liabilities at fair value through profit and loss
- Derivatives
-
21,022
-
21,022
Total liabilities
-
21,022
-
21,022
Level 1
Level 2
Level 3
Total
2011
- Debt securities
- Derivatives
- Equity securities
- Investments securities - debt
174,882
24,439
45,733
-
-
174,882
45,733
24,439
290,592
-
-
290,592
Total assets
489,913
45,733
-
535,646
Financial liabilities at fair value through profit and loss
- Derivatives
-
23,841
-
23,841
Total liabilities
-
23,841
-
23,841
I.
Fiduciary activities
The Group provides custody services to third parties. Those assets that are held in a fiduciary capacity
are not included in these consolidated financial statements. Fiduciary capacity of the Group is as
follows:
2012
2011
Investment securities held in custody
Cheques received for collection
Customer investment security portfolio
Commercial notes received for collection
36
952,876
217,077
54,443
28,664
860,824
280,203
31,844
1,253,060
1,172,871
ABANK AT A GLANCE
NOTE 5 - CASH AND CASH EQUIVALENTS
For the purposes of the cash flow statement, cash and cash equivalents comprise the following
balances with less than three months maturity from the date of acquisition:
2012
2011
Demand deposits with the Central Bank of Turkey
(with original maturity less than three months)
56,979
340,253
46,021
202,620
73,614
111,618
Total
470,846
360,259
NOTE 6 - CASH AND BALANCES WITH THE CENTRAL BANK OF TURKEY
Cash in hand - foreign currency
Cash in hand - TL
Other- TL
Demand deposits at central banks
Foreign currency
TL
Reserve deposits at central banks
Foreign currency
Total
2012
2011
30,915
25,704
360
25,928
20,093
-
56,979
46,021
64,388
275,865
59,725
142,895
340,253
202,620
230,065
254,388
230,065
254,388
627,297
503,029
Banks that are established in Turkey or performing their operations by opening new branches in
Turkey are subject to the Central Bank of the Republic of Turkey’s Communiqué numbered 2005/1
“Required Reserves”. The Bank’s total domestic liabilities excluding the items stated in the
Communiqué as deductibles, the deposits accepted on behalf of foreign branches from Turkey and
loans obtained by the banks but followed under foreign branches constitute the required reserves
liabilities.
The reserve rates for TL liabilities vary between 5% and 11% for TL deposits and other liabilities
according to their maturities as of 31 December 2012 (2011: 5% and 11% for all TL liabilities). The
reserve rates for foreign currency liabilities vary between 6% and 11% for deposit and other foreign
currency liabilities according to their maturities as of 31 December 2012 (2011: 6% and 11% for all
foreign currency liabilities).
No interest is charged by CBRT for Turkish lira and foreign currency denominated reserve
requirements.
37
FINANCIAL TABLES
103
NOTE 7 - LOANS AND ADVANCES TO BANKS
Domestic
2012
Foreign
Total
Domestic
2011
Foreign
Total
16,423
2,015
-
16,423
2,015
419
34,801
-
419
34,801
18,438
-
18,438
35,220
-
35,220
2,409
31,933
20,834
-
23,243
31,933
3,118
18,444
19,824
35,044
22,942
53,488
34,342
20,834
55,176
21,562
54,868
76,430
Total
52,780
20,834
73,614
56,782
54,868
111,650
Current
Non-current
52,780
-
20,834
-
73,614
-
56,782
-
54,868
-
111,650
-
TL:
Nostro/ demand deposits
Interbank money market
Foreign currency:
Nostro/ demand deposits
Time deposits
NOTE 8 - FINANCIAL ASSETS HELD FOR TRADING
2012
2011
Government bonds and treasury bills
sold under repurchase agreements
Other debt securities
6,941
136,021
439
22,340
25,580
13,281
Total debt securities
29,720
174,882
Equity securities - listed
20,535
24,439
Total equity securities
20,535
24,439
12,205
45,733
Total financial assets held for trading
62,460
245,054
Current
Non-current
39,965
22,495
75,483
169,571
Government bonds and treasury bills are discount and coupon securities issued by the Government of
the Republic of Turkey. Other debt securities represent corporate bonds issued by companies
incorporated in Turkey.
38
ABANK AT A GLANCE
NOTE 9 - DERIVATIVE FINANCIAL INSTRUMENTS
The Group utilises the following derivative instruments:
“Currency forwards” represent commitments to purchase or sell foreign and domestic currency,
including undelivered spot transactions.
“Currency swaps” are commitments to exchange one set of cash flows for another. Swaps result in an
economic exchange of currencies or interest rates. Currency swaps involve the exchange of the
principal as well. The Group risks are represented by the potential cost of replacing the swap contracts
if counterparties fail to perform their obligation. This risk is monitored on an ongoing basis with
reference to the current fair value and the liquidity of the market. To control the level of risk taken, the
Group assesses counterparties using the same techniques as for its lending activities.
Options are the right to buy or sell for the buyer and are the obligations for the writer an asset at a
specified price until a specified expiration date. Options are traded for clients’ needs.
The notional amounts of certain types of financial instruments provide a basis for comparison with
instruments recognised on the balance sheet but do not necessarily indicate the amounts of future cash
flows involved or the current fair value of the instruments, and therefore, do not indicate the Group’s
exposure to credit or price risks. The derivative instruments become favourable (assets) or
unfavourable (liabilities) as a result of fluctuations in foreign exchange rates and interest rates relative
to their terms.
2012
Derivatives held for trading
Contract/ notional
amount
Fair values
Assets
Liabilities
Currency forwards
Currency swaps
OTC currency options
Marketable security options
Interest rate swaps
247,237
1,268,377
1,670,540
71,104
442,208
262
7,383
4,560
-
1,369
12,116
4,242
207
3,088
Total derivative assets/ (liabilities) held for trading
3,699,466
12,205
21,022
7,751
4,454
20,005
1,017
Current
Non-current
2011
Derivatives held for trading
Contract/ notional
amount
Fair values
Assets
Liabilities
Currency forwards
Currency swaps
OTC currency options
Interest rate swaps
303,817
838,223
2,092,318
200,000
2,728
19,023
19,778
4,204
3,488
565
19,788
-
Total derivative assets / (liabilities) held for trading
3,434,358
45,733
23,841
36,373
9,360
23,841
-
Current
Non-current
39
FINANCIAL TABLES
105
NOTE 10 - LOANS AND ADVANCES TO CUSTOMERS
2012
Corporate
SME
Consumer
Credit Card
Total
Performing loans
Loans under close monitoring
Loans under legal follow-up
2,148,417
67,489
105,444
2,604,165
80,710
127,617
190,895
18,118
940
5,979
328
-
4,949,456
166,645
234,001
Gross
2,321,350
2,812,492
209,953
6,307
5,350,102
79,217
34,581
24,862
48,972
1,630
16,552
339
105,709
100,444
113,798
73,834
18,182
339
206,153
2,207,552
2,738,658
191,771
5,968
5,143,949
Specific allowance for impairment
Collective allowance for impairment
Total allowance for impairment
Net
Current
Non-current
2011
4,259,855
884,094
Corporate
SME
Consumer
Credit Card
Total
Performing loans
Loans under close monitoring
Loans under legal follow-up
1,697,991
67,969
77,829
2,284,557
78,205
134,764
100,098
1,985
1,718
-
4,082,646
148,159
214,311
Gross
1,843,789
2,497,526
103,801
-
4,445,116
Specific allowance for impairment
Collective allowance for impairment
49,817
18,211
57,541
33,468
772
4,462
-
108,130
56,141
Total allowance for impairment
68,028
91,009
5,234
-
164,271
1,775,761
2,406,517
98,567
-
4,280,845
Net
Current
Non-current
3,451,544
829,301
Reconciliation of allowance account for losses on loans and advances by class is as follows:
2012
Corporate
SME
2011
Consumer
Total
Total
At 1 January
68,028
91,009
5,234
164,271
83,236
Provision for loan impairment
Amounts recovered
during the year (-)
Loans written off during the year
as uncollectible (-)(1)
56,935
112,729
13,287
182,951
89,320
(867)
(13,555)
-
(14,422)
(8,285)
(10,298)
(116,349)
-
(126,647)
At 31 December
113,798
73,834
18,521
(1)
206,153
164,271
A part of impaired loans amounting to TL 93,082 have been sold to Girişim Varlık Yönetim A.Ş for a total consideration
of TL 18,000 on 20 June 2012 and another part of impaired loans amounting to TL 58,434 have been sold to Final Varlık
Yönetim A.Ş. for a total consideration of TL 7,750 on 12 December 2012.
40
ABANK AT A GLANCE
NOTE 11 - INVESTMENT SECURITIES
(i)
Securities available-for-sale
2012
2011
Debt securities - at fair value:
Corporate bonds and bills
725,869
57,177
290,592
-
Total securities available-for-sale
783,046
290,592
Current
Non-current
783,046
8,189
282,403
the Republic of Turkey. Corporate bonds and bills are discount and coupon securities issued by Yapı
ve Kredi Bankası A.Ş. and Türkiye İş Bankası A.Ş.
Net gains from changes in the fair value of available-for-sale investment securities, net of tax
TL 15,690 (2011: TL 5,752 net losses). There are no impairments recognised for available-for-sale
securities.
The movement in available-for-sale securities at 31 December is as follows:
2012
At 1 January
290,592
Additions
Disposals / redemption
Changes in fair value (1)
Exchange differences on monetary assets
13,746,468
(13,273,627)
19,613
-
At 31 December
783,046
(1)
Includes net fair value differences of outstanding available-for-sale portfolio.
(ii)
Securities held-to-maturity
Debt securities - at amortised cost - listed:
Corporate bonds and bills
sold under repurchase agreements
Total securities held-to-maturity
Current
Non-current
2011
182
1,046,697
(749,097)
(7,190)
290,592
2012
2011
114,575
-
311,324
42,020
931,132
474,956
1,045,707
828,300
440,027
605,680
335,640
492,660
the Republic of Turkey. Corporate bonds and bills are discount and coupon securities issued by Yapı
ve Kredi Bankası A.Ş.
41
FINANCIAL TABLES
107
NOTE 11 - INVESTMENT SECURITIES (Continued)
The movement in held-to-maturity securities at 31 December is as follows:
At 1 January
Additions
Disposals / redemption (1)
Impairment losses
At 31 December
2012
2011
828,300
391,159
684,281
(464,809)
(2,065)
518,181
(83,207)
2,167
1,045,707
828,300
(1)
As per the regulation on capital adequacy (Basel II) effective from 1 July 2012, the risk weighting of
securities in foreign currencies issued by the Turkish Treasury increased from 0% to 100%. Accordingly, in the
current year, the Bank reclassified its Eurobonds from held-to-maturity portfolio to available-for-sale portfolio in
accordance with the exception granted by IAS 39 whose total carrying value was TL 39,803 at 30 September
2012.
NOTE 12 - OTHER INTANGIBLE ASSETS
2012
Cost
Accumulated amortisation
2011
56,064
(36,323)
37,549
(34,107)
19,741
3,442
Rights and
licenses
Software
Total
32,844
18,227
-
4,705
288
-
37,549
18,515
-
51,071
4,993
56,064
At 1 January
Amortisation charge (Note 28)
Disposals
(29,671)
(2,083)
-
(4,436)
(133)
-
(34,107)
(2,216)
-
At 31 December
(31,754)
(4,569)
(36,323)
Net book amount
Movements of other intangible assets were as follows:
2012
Cost
At 1 January
Additions
Disposals
At 31 December
Net book amount at 31 December
19,317
42
424
19,741
ABANK AT A GLANCE
NOTE 12 - OTHER INTANGIBLE ASSETS (Continued)
2011
Rights and
licenses
Software
Total
31,150
1,694
-
4,537
168
-
35,687
1,862
-
32,844
4,705
37,549
At 1 January
Amortisation charge (Note 28)
Disposals
(28,907)
(764)
-
(4,254)
(182)
-
(33,161)
(946)
-
At 31 December
(29,671)
(4,436)
(34,107)
Cost
At 1 January
Additions
Disposals
At 31 December
3,173
269
3,442
2012
2011
NOTE 13 - PROPERTY AND EQUIPMENT
Cost
Accumulated depreciation and impairment
Net book amount
2012
Cost
At 1 January
Additions
Disposals
Furniture and
Office Equipment
Leasehold
Improvements
84,841
(63,676)
82,579
(58,342)
21,165
24,237
Motor
Vehicles
Leasing
Total
42,387
2,775
(1,376)
31,830
1,483
(329)
96
-
8,266
(291)
82,579
4,258
(1,996)
43,786
32,984
96
7,975
84,841
At 1 January
Depreciation charge (Note 28)
Disposals
(31,674)
(2,888)
1,341
(19,007)
(4,109)
297
(81)
(7)
-
(7,580)
(255)
287
(58,342)
(7,259)
1,925
At 31 December
(33,221)
(22,819)
(88)
(7,548)
(63,676)
10,565
10,165
8
At 31 December
43
427
21,165
FINANCIAL TABLES
109
110
NOTE 13 - PROPERTY AND EQUIPMENT (Continued)
2011
Cost
At 1 January
Additions
Disposals
Furniture and
Office Equipment
Leasehold
Improvements
Motor
Vehicles
Leasing
Total
35,967
6,776
(356)
26,612
5,218
-
186
(90)
8,266
-
71,031
11,994
(446)
42,387
31,830
96
8,266
82,579
At 1 January
Depreciation charge (Note 28)
Disposals
(29,695)
(2,240)
261
(15,082)
(3,925)
-
(154)
(7)
80
(6,805)
(775)
-
(51,736)
(6,947)
341
At 31 December
(31,674)
(19,007)
(81)
(7,580)
(58,342)
10,713
12,823
15
At 31 December
686
24,237
At 31 December 2012, there is no provision for impairment on property and equipment (2011: None).
NOTE 14 - OTHER ASSETS
2012
2011
Asset held for resale
Contractually sold repossessed assets
Collaterals given for securities
Collaterals given for derivative transactions
Prepaid expenses
Others
40,992
16,338
3,225
9,955
8,241
10,111
34,509
29,802
16,076
11,469
7,672
6,521
Total
88,862
106,049
Current
Non-current
7,949
80,913
7,240
98,809
Assets held for resale represent mainly foreclosed assets received against uncollectible loans and
advances to customers, to be sold as required by the Turkish Banking Law. Movements in assets held
for resale at 31 December were as follows:
2012
2011
34,509
28,189
Additions
Disposals
Impairment charge for the year, net
Depreciation charge for the year
20,621
(13,985)
(153)
23,728
(17,173)
(235)
-
40,992
34,509
Net book amount at 1 January
44
ABANK AT A GLANCE
NOTE 15 - DEPOSITS FROM BANKS
Term
Total
Demand
2011
Term
Total
886
-
-
886
-
329
5,719
-
5,719
329
-
75,249
75,249
-
-
-
886
75,249
76,135
329
5,719
6,048
46
-
46
17
-
17
-
1,360,744 1,360,744
-
654,490
654,490
46
1,360,744 1,360,790
17
654,490
654,507
Total
932
1,435,993 1,436,925
346
660,209
660,555
Current
Non-current
932
-
1,435,993 1,436,925
-
346
-
660,209
-
660,555
-
Demand
Foreign currency:
Foreign banks
Domestic banks
Funds deposited under
repurchase agreements
TL:
Domestic banks
2012
NOTE 16 - DUE TO CUSTOMERS
Demand
Foreign currency deposits:
Saving deposits
Commercial deposits
TL deposits:
Saving deposits
Commercial deposits
Public sector deposits
24,316
115,173
2012
Term
Total
Demand
2011
Term
Total
590,042
452,425
614,358
567,598
28,495
128,123
492,945
572,426
521,440
700,549
139,489
1,042,467 1,181,956
156,618 1,065,371 1,221,989
49,566
125,752
1,479,241 1,528,807
1,310,456 1,436,208
42,552 1,223,471 1,266,023
124,715 1,012,973 1,137,688
21,851
704
-
704
21,851
11,001
10,854
-
10,854
11,001
197,169
2,790,401 2,987,570
178,268 2,247,298 2,425,566
Total
336,658
3,832,868 4,169,526
334,886 3,312,669 3,647,555
Current
Non-current
336,658
-
3,824,921 4,161,579
7,947
7,947
334,886 3,312,585 3,647,471
84
84
45
FINANCIAL TABLES
111
112
NOTE 17 - OTHER BORROWED FUNDS AND SUBORDINATED DEBT
2012
2011
365,522
257,489
432,413
415,025
274,470
335,617
1,055,424
1,025,112
Domestic banks
233,167
313,895
Total domestic
233,167
313,895
1,288,591
1,339,007
836,257
452,334
794,611
544,396
Foreign institutions and banks
Syndication loans
Subordinated debt
Other
Total foreign
Total
Current
Non-current
As of 31 December 2012, funds borrowed from foreign institutions include a syndicated credit facility,
in the amount of EUR 123.5 million and USD 42.5 million dual-tranche multi-currency term loan
facility dated 6 June 2012, with an interest rate of annual Libor+2.25% provided by 25 international
banks with Commerzbank acting as agent, and matures on 5 June 2013.
The details of subordinated loans of the Bank as of 31 December 2012 are presented in the table
below:
Principal
Amount
Opening Date
Maturity
Interest rate
(%)
International Finance Corporation
Black Sea Trade and Development Bank
USD 50.000
USD 30.000
29 December 2010
29 December 2010
10 year
10 year
Libor + 4,50
Libor + 4,50
FMO Amsterdam
DEG KOLN
USD 25.000
EUR 20.000
29 December 2010
29 December 2011
10 year
10 year
Libor + 4,50
Libor + 4,50
EFSE SA.SICAV-SIF
EUR 10.000
29 December 2011
10 year
Libor + 4,50
Lender
NOTE 18 - DEBT SECURITIES IN ISSUE
In May 2012, the Bank finalised a bond issuance of TL 150,000 with an interest rate of 7.04% as of 31
December 2012.
46
ABANK AT A GLANCE
NOTE 19 - TAXATION
Current tax expense
Deferred tax income/(expense)
2012
2011
(35,887)
18,417
(4,963)
(1,195)
(17,470)
(6,158)
Turkish tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax
return, Therefore, provisions for taxes, as reflected in these consolidated financial statements, have
been calculated on a separate-entity basis,
Under the Corporate Tax Law numbered 5520, the applicable corporate tax rate is 20% for 2012
(2011: 20%). Corporate tax is payable at a rate of 20% over the corporate tax base of the company
after adjusting for certain disallowable expenses, exempt income, investment allowance and other
additions and deductions. The annual corporate income tax return is required to be filed until 25th day
of the fourth month following the close of the related fiscal year. Payments will be carried out in
single installment until the end of the month in which the tax return is to be filed.
Dividends paid to non-resident corporations, which have a fixed place of business or permanent
representative in Turkey, or resident corporations are not subject to withholding tax. Otherwise,
dividends paid are subject to withholding tax at the rate of 15% An increase in capital via issuing
bonus shares is not considered as a profit distribution and thus does not incur withholding tax,
Provisions of bilateral treaties are reserved.
Corporations are required to pay advance corporation tax quarterly at the rate of 20% on their
quarterly determined corporate income. Advance tax return is filed by the 14th of the second month
following the each quarterly period and is payable on the 17th of the same month, Advance tax paid
by corporations is credited against the annual corporation tax liability. The balance of the advance tax
paid may be refunded or used to offset against other liabilities to the government.
In accordance with Tax Law No: 5024 “Law Related to Changes in Tax Procedure Law, Income Tax
Law and Corporate Tax Law” that was published on the Official Gazette on 30 December 2003 to
amend the tax base for non-monetary assets and liabilities, effective from 1 January 2004, the income
and corporate taxpayers will prepare the statutory financial statements by adjusting the non-monetary
assets and liabilities for the changes in the general purchasing power of the Turkish Lira, In
accordance with the aforementioned law provisions, in order to apply inflation adjustment, cumulative
inflation rate (SIS-WPI) over last 36 months and 12 months must exceed 100% and 10%, respectively,
Inflation adjustment has not been applied as these conditions were not fulfilled in the year 2012.
In Turkey, there is no procedure for a final and definitive agreement on tax assessments, Tax
authorities have the right to audit tax declarations and accounting records for 5 years, and may issue
re-assessment based on their findings for tax purposes.
Under the Turkish taxation system, tax losses can be carried forward to offset against future taxable
income for up to 5 years, Tax losses cannot be carried back to offset profits from previous periods.
75% of the capital gains of corporations’ from sale of participation shares and property which have been
in their assets at least for two years is exempt from corporate tax provided that this amount is kept in a
special reserve account in the liabilities side of the balance sheet for 5 years,
47
FINANCIAL TABLES
113
114
NOTE 19 - TAXATION (Continued)
Reconciliation between the theoretical tax amount that would arise using the basic tax rate of the
Parent and the actual taxation charge for the year is stated below:
2012
2011
98,749
27,043
(19,750)
101,924
(198,393)
(5,409)
44,316
(72,108)
(17,470)
(6,158)
Profit before income taxes
Theoretical income tax of the applicable tax rate of 20%
Expenditure not deductable for income tax purposes
Income exempt from taxation
Income tax expense
Deferred income taxes
For all subsidiaries and the Parent, deferred income taxes are calculated on temporary differences that
are expected to be realised or settled based on the taxable income in fiscal year 2010 under the liability
method using a principal tax rate of 20% at 31 December 2012 (2011: 20%).
The temporary differences giving rise to the deferred income tax assets and deferred income tax
liabilities are as follows:
Cumulative Temporary
Differences
2012
2011
Loan loss impairment provision
Valuation differences on investment securities
Bonus provision
Employee termination benefits and vacation pay liability
Revaluation of derivative instruments at fair value
Court case provision
Other
Deferred Tax
Asset/Liability
2012
2011
69,325
36,808
12,577
8,155
2,974
1,646
5,903
59,643
8,752
6,954
987
1,384
13,865
7,362
2,515
1,631
595
329
1,181
11,929
1,750
1,391
197
277
137,388
77,720
27,478
15,544
Difference between carrying value and
tax base of property and equipment
Revaluation of derivative instruments at fair value
Valuation differences on investment securities
4,064
-
4,726
21,513
10,234
813
-
946
4,303
2,047
Deferred income tax liabilities
4,064
36,473
813
7,296
26,665
8,248
Deferred income tax assets, net
The movements of deferred income taxes at 31 December were as follows:
2012
2011
1 January
Charge for the year, net
8,248
18,417
9,443
(1,195)
31 December
26,665
8,248
At 31 December 2012, there are no deductible temporary differences for which no deferred tax asset is
recognised in the balance sheet (2011: None).
48
ABANK AT A GLANCE
NOTE 20 - OTHER PROVISIONS
2012
2011
Provision for losses on credit related commitments
Other legal provision
Other
27,263
1,646
511
13,891
987
776
Total
29,420
15,654
Current
Non-current
29,420
15,654
Other legal provisions
At 31 December 2012, the Group is involved in number of legal disputes, The Group’s lawyers advise
that, owing to developments in some of these cases; it is probable that the Group will be found liable.
Therefore, the management has recognised a provision of TL 1,646 (2011: TL 987) as the best estimate
of the amount to settle these potential obligations.
NOTE 21 - RETIREMENT BENEFIT OBLIGATIONS
Balance sheet obligations for:
- Reserve for employment termination benefits
The movement in the reserve for employee benefits is as follows:
1 January
Interest costs
Actuarial gains and losses
Charge for the year
Paid during the year
2012
2011
4,878
4,081
4,878
4,081
2012
2011
4,081
3,907
190
708
(101)
31 December
4,878
182
1,027
345
(1,380)
4,081
Under the Turkish Labour Law, the Parent and its subsidiaries are required to pay termination benefits
to each employee who has completed at least one year of service and whose employment is terminated
without due cause, is called up for military service, dies or who retires. Since the legislation was
changed on 8 September 1999, there are certain transitional provisions relating to length of service
prior to retirement. The amount payable consists of one month’s salary limited to a maximum of TL
3,033.98 (1 January 2012: TL 2,805.04) for each year of service.
There are no agreements for pension commitments other than the legal requirement as explained
above. The liability is not funded, as there is no funding requirement.
49
FINANCIAL TABLES
115
116
NOTE 21 - RETIREMENT BENEFIT OBLIGATIONS (Continued)
IFRS requires actuarial valuation methods to be developed to estimate the enterprise’s obligation
under defined benefit plans. In the consolidated financial statements, the Group reflected a liability
calculated using the projected unit credit method and based upon the factors derived using their
experience of personnel terminating their services and being eligible to receive employment
termination benefits. The provision has been calculated by estimating the present value of the future
probable obligation of the Group arising from the retirement of the employees.
Accordingly the following financial and demographical actuarial assumptions were used in the
calculations of the provision:
2012
2011
Discount rate (%)
The probability of retirement (%)
2.48
89.92
4.66
90.48
2012
2011
53,470
51,328
14,347
12,577
10,248
9,057
3,279
5,396
30,326
92,706
27,491
14,363
8,832
347
7,417
2,895
16,076
29,129
190,028
199,256
93,651
96,377
86,584
112,672
NOTE 22 - OTHER LIABILITIES
Blocked accounts
Cheques in collection
Taxes other than income and withholdings
Bonus accrual for personnel
Letter of credit suspense account
Liabilities for property and equipment held for sale
Provision for unused annual vacation
Collaterals received for securities
Other
Total
Current
Non-current
NOTE 23 - SHARE CAPITAL AND SHARE PREMIUM
The historic amount of share capital of the Company consists of 420 million (2011: 300 million)
authorised shares with a nominal value of TL 1 each. The Company’s authorised capital amounts to
TL 420,000 (2011: TL 300,000). The issued and fully paid-in share capital and share premium are as
follows:
Shareholders
Anadolu Endüstri Holding A.Ş.
Other
Historical share capital
2012
Participation
rate (%)
TL
thousand
2011
Participation
TL
rate (%)
thousand
77.71%
22.29%
326,399
93,601
77.71%
22.29%
233,142
66,858
100.00%
420,000
100.00%
300,000
Share premium
Total share capital and share premium
50
98
85
420,098
300,085
ABANK AT A GLANCE
NOTE 24 - RETAINED EARNINGS AND OTHER RESERVES
2012
2011
Statutory reserve
Revaluation reserve - available-for-sale investments
11,529
9,939
9,587
(5,751)
Total other reserves
21,468
3,836
143,517
183,746
Retained earnings
Movements in other reserves were as follows:
Statutory
reserves
Revaluation
reserves
Total
At 1 January 2012
9,587
(5,751)
3,836
Net change in available-for-sale
investments, net of tax
Purchase from non controlling interests
127
1,815
15,690
-
15,690
127
1,815
11,529
9,939
21,468
Statutory
reserves
Revaluation
reserves
Total
At 1 January 2011
8,016
1
8,017
Net change in available-for-sale
investments, net of tax
1,571
(5,752)
-
(5,752)
1,571
At 31 December 2011
9,587
(5,751)
3,836
At 31 December 2012
Retained earnings as per the statutory financial statements other than legal reserves are available for
distribution, subject to the legal reserve requirement referred to below.
Under the Turkish Commercial Code, the Group is required to create the following legal reserves from
appropriation of earnings, which are available for distribution only in the event of liquidation or
losses:
a)
First legal reserve, appropriated at the rate of 5% of net income, until the total reserve is equal to
20% of issued and fully paid-in share capital.
b)
Second legal reserve, appropriated at the rate of at least 10% of distribution in excess of 5% of
issued and fully paid-in share capital, without limit. It may be used to absorb losses.
After deducting taxes and setting aside the legal reserves as discussed above, the remaining balance of
net profit is available for distribution to shareholders.
51
FINANCIAL TABLES
117
118
NOTE 25 - NET INTEREST INCOME
Interest income on:
Loans and advances:
- to banks
- to customers
Trading securities
Money market transactions
Other
2012
2011
778
664,166
46,975
143,055
1,950
3,599
1,389
436,780
8,011
66,594
3,966
3,417
Total interest income
860,523
520,157
Interest expense on:
Due to customers
Repurchase agreements
Debt securities in issues
Deposits from banks
Other
301,552
84,274
45,260
8,577
359
1,167
214,554
23,550
36,279
6,940
2,572
Total interest expense
441,189
283,895
Net interest income
419,334
236,262
NOTE 26 - NET FEE AND COMMISSION INCOME
Fee and commission income on:
Letter of guarantee
Brokerage
Account management
Money transfers
Expertise
Insurance
Other
2012
2011
26,908
4,473
4,615
2,475
2,067
1,179
4,606
25,061
10,173
1,978
225
1,590
836
3,847
Total fee and commission income
46,323
43,710
Fee and commission expense on:
Debit cards
Correspondent banks
CBRT Interbank money market transactions
Effective and future transactions
Money transfers
Other
1,365
1,146
763
121
7
2,711
1,185
626
712
127
20
763
Total fee and commission expense
6,113
3,433
40,210
40,277
52
ABANK AT A GLANCE
NOTE 27 - TRADING GAINS AND LOSSES, NET
2012
2011
Trading securities
Derivative financial transactions
(6,503)
(18,669)
(8,350)
12,560
Net (Loss) / Income
(25,172)
4,210
Net trading income from derivative financial instruments includes gains and losses from spot and
forward contracts, options, futures, and swaps due to changes in interest rates.
Net gains from investment securities amounting to TL 16,939 (2011: TL 4,052) comprise of net results
on disposals of available for sale financial assets.
NOTE 28 - OTHER OPERATING EXPENSES
2012
2011
123,615
99,700
Depreciation on property and equipment (Note 13)
Amortisation of intangible assets (Note 12)
7,259
2,216
6,947
946
Depreciation and amortisation
9,475
7,893
Operational lease expenses
Sundry taxes
Marketing and advertisement costs
Repair and maintenance expenses
Other
19,766
10,513
4,751
1,178
26,654
16,824
7,897
2,247
897
26,602
General administrative expenses
62,862
54,467
195,952
162,060
Staff costs
Total
Reserve for employment termination benefit, accrual for unused vacation rights and provision for
personnel bonus are included in the staff costs in the table above.
NOTE 29 - IMPAIRMENT LOSSES ON LOANS AND CREDIT RELATED COMMITMENTS
2012
2011
Impairment losses on loans and receivables (Note 10)
Impairment losses on credit related commitments (Note 20)
(168,529)
(13,372)
(79,468)
(4,389)
Total
(181,901)
(83,857)
53
FINANCIAL TABLES
119
NOTE 30 - ASSETS PLEDGED AND RESTRICTED
The Group has the following assets pledged as collateral:
2012
2011
Assets
Related
liability
Assets
Related
liability
Trading securities (Note 8)
Investment securities (Note 11)
Other assets pledged (1)
439
1,364,566
13,180
430
1,435,563
-
25,580
474,956
27,545
25,089
633,751
-
Total
1,378,185
1,435,993
528,081
658,840
(1)
Other assets pledged are the collaterals given to the counter parties of the derivative financial instruments
and other collaterals given.
Held for trading and held-to-maturity securities whose total carrying amount is TL 1,365,005 as of
31 December 2012 (2011: TL 500,536) are pledged to banks and other financial institutions against
funds obtained under repurchase agreements (Note 15 and Note 16). Total amount of funds obtained
under repurchase agreements is TL 1,436,697 s of 31 December 2012 (2011: TL 658,840).
Held for trading and held-to-maturity securities are also pledged to regulatory authorities for legal
requirements and other financial institutions as a guarantee for stock exchange and money market
operations. These are mainly the CBRT, ISE Settlement and Custody Bank and other financial
institutions and amount to TL 242,406 (2011: TL 82,151).
At 31 December 2012, the Group’s reserve deposits that are not available to finance the Group’s dayto-day operations amount to TL 230,065 (2011: TL 254,388).
NOTE 31 - COMMITMENTS AND CONTINGENT LIABILITIES
In the normal course of its activities, the Group undertakes various commitments and incurs certain
contingent liabilities that are not presented in these financial statements, including letters of guarantee,
acceptances and letters of credit. The following is a summary of significant commitments and
contingent liabilities at 31 December.
Legal proceedings
Due to the nature of its business, the Group is involved in a number of claims and legal proceedings,
arising in the ordinary course of business. The Group recognises provisions for such matters when, in
the opinion of management and its professional advisors, it is probable that a payment will be made by
the Group, and the amount can be reasonably estimated (Note 20).
In respect of the further claims asserted against the Group ,which according to the principles outlined
above, have not been provided for, it is the opinion of the management and its professional advisors
that such claims are either without merit, can be successfully defended or will not have a material
adverse effect on the Group’s financial position.
54
ABANK AT A GLANCE
NOTE 31 - COMMITMENTS AND CONTINGENT LIABILITIES (Continued)
Credit related commitments
The primary purpose of these instruments is to ensure that funds are available to a customer as and if
required. Guarantees and standby letters of credit, which represent irrevocable assurances that the
Group will make payments in the event that a customer cannot meet its obligations to third parties,
carry the same credit risk as loans. Documentary and commercial letters of credit, which are written
undertakings by the Group on behalf of a customer authorising a third party to draw drafts on the
Group up to a stipulated amount under specific terms and conditions, are collateralised by the
underlying shipments of goods to which they relate and therefore have significantly less risk.
Cash requirements under guarantees and standby letters of credit are considerably less than the amount
of the commitment.
The total outstanding contractual amount of commitments to extend credit does not necessarily
represent future cash requirements, since many of these commitments will expire or terminate without
being funded.
The following table shows the outstanding credit related commitments of the Group:
2012(1)
Indefinite
Not later
than 1 year
1-5 years
Over
5 years
Total
Letter of credits
Acceptance credits
1,675,583
-
119,402
7,382
186,048
20,797
-
1,675,583
305,450
28,179
Total
1,675,583
126,784
206,845
-
2,009,212
2011(1)
Indefinite
Not later
than 1 year
1-5 years
Over
5 years
Total
Letter of credits
Acceptance credits
Other commitments
1,533,919
-
348,960
132,451
30,070
24,535
83,653
11,051
-
1,533,919
373,495
216,104
41,121
Total
1,533,919
511,481
119,239
-
2,164,639
(1)
Based on original maturities,
55
FINANCIAL TABLES
121
122
NOTE 32 - SEGMENT ANALYSIS
The Group is organized into two main business segments which are organized and managed separately
according to the nature of the products and services provided.
Commercial
Banking
Investment
Banking
Other
Group
359,662
49,352
-
60,047
5,182
926
(375)
3
419,334
54,534
929
(181,901)
(183,123)
(8,233)
(4,388)
-
(181,901)
(8,233)
(187,511)
43,990
43,990
53,534
30
53,564
(372)
(17,500)
(17,872)
97,152
(17,470)
79,682
-
-
1,597
1,597
43,990
53,564
(16,275)
81,279
Segment assets
5,128,601
2,521,248
242,657
7,892,506
Total assets
5,128,601
2,521,248
242,657
7,892,506
Segment liabilities
Unallocated liabilities
4,087,630
-
2,428,752
-
775,214
600,910
7,291,596
600,910
Total liabilities
4,087,630
2,428,752
1,376,124
7,892,506
Commercial
Banking
Investment
Banking
Other
Group
144,425
81,875
-
32,820
(1,761)
680
30,879
(540)
32
208,124
79,574
712
(82,901)
2,956
(110,628)
(10,512)
(19,825)
(40,560)
(82,901)
(7,556)
(171,013)
35,727
35,727
1,402
(602)
800
(10,189)
(5,556)
(15,745)
26,940
(6,158)
20,782
-
-
103
103
35,727
800
(15,642)
20,885
Segment assets
4,439,389
1,920,093
41,964
6,401,446
Total assets
4,439,389
1,920,093
41,964
6,401,446
Segment liabilities
Unallocated liabilities
3,714,055
-
1,849,813
-
330,352
507,226
5,894,220
507,226
Total liabilities
3,714,055
1,849,813
837,578
6,401,446
2012
Net interest income (1)
Net fees and commission income and other operating income (1)
Dividend income
(Provisions for)/ recoveries from impairment
loan receivables (1)
Trading gain / loss
Other operating expenses (1)
Tax provision
Profit from after income tax
Net profit
Asset and liabilities
2011
Net interest income (1)
Net fees and commission income and other operating income (1)
Dividend income
(Provisions for)/ recoveries from impairment
loan receivables (1)
Trade gain / loss
Other operating expenses (1)
Tax provision
Profit from after income tax
Net profit
Asset and liabilities
(1)
Classification differences with income statement exist since business reporting of the Bank was used.
56
ABANK AT A GLANCE
NOTE 33 - RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability to control the other party or exercise
significant influence over the other party in making financial or operational decisions, The Group is
controlled by Anadolu Endüstri Holding A.Ş. owning 77.71% of the ordinary shares.
A number of transactions were entered into with related parties in the normal course of business.
(i)
Balances with related parties:
2012
2011
Total
Share in
total %
Total
Share in
total %
47,272
0.92
5,439
0.13
Total assets
47,272
Due to customers
430,179
-
Total liabilities
430,179
Credit related commitments
95,987
Total commitments and contingent liabilities
95,987
5,439
10.32
-
776,186
356
21.03
100
776,542
4.78
95,571
4.42
95,571
(ii) Transactions with related parties:
2012
2011
Total
Share in
total %
Total
Share in
total %
Interest income on loans and advances to customers
Commission income on credit related commitments
2,957
1,971
0.34
4.25
1,612
1,741
0.31
3.98
Total interest and fee income
4,928
Interest expense on deposits
Other operating expense
55,112
2,375
Total interest and fee expense
57,487
(iii)
3,353
18.28
1.21
44,336
1,625
20,66
0.96
45,961
Balances with directors and other key management personnel:
Included in the tables above are the following balances with directors and other key management
personnel:
2012
23
14,248
3,767
Due to customers
Interest expense on deposits
2011
53,297
3,273
Salaries and other benefits paid to the Group’s key management approximately amount to TL 10,636 as
of 31 December 2012 (2011: TL 8,276).
57
FINANCIAL TABLES
123
NOTE 34 - ASSETS UNDER MANAGEMENT
At 31 December 2012, the Group manages 6 (2011: 6) mutual funds which were established under
Capital Markets Board Regulations. At 31 December 2012, the Funds’ investment portfolio mainly
includes government bonds, treasury bills and share certificates amounting to TL 43,961 (2011: TL
39,011). In accordance with the Funds’ statute, the Group purchases and sells marketable securities for
the Funds, markets their participation certificates and provides other services and charges management
fees ranging from 0,003% to 0,010% (2011: 0.005% to 0.010%). At 31 December 2012, management
fees earned by the Group amounted to TL 541 (2011: TL 1,522).
NOTE 35 - POST BALANCE SHEET EVENTS
1)
On 24 December 2012, it was announced that Anadolu Endustri Holding A.Ş., the majority
shareholder of the Bank, has begin negotiations with Commercial Bank of Qatar for the sale of a
majority stake in the Bank. The discussions regarding the sale of the shares which represents 75%
of total share capital of the Bank are ongoing and details of the deal have not been finalised yet.
However, it is expected that the negotiations will be finalised within March 2013.
2)
On 16 January 2013, the Bank finalised a bond issuance of TL 100,000 with 175 days maturity
and the bond has been sold to qualified investors without public offering.
3)
On 16 January 2013, the Bank finalised another bond issuance of TL 50,000 with 728 days
maturity and the bond has been sold to qualified investors without public offering.
4)
Alternatif Portföy Yönetimi A.Ş. was established with a paid in capital of TL 1,000 and
registration of incorporation was declared in the Trade Registry on 1 February 2013. Alternatif
Portföy Yönetimi A.Ş. is wholly owned by Alternatif Yatırım A.Ş. In the forthcoming days,
following the registration, all required applications will be made to Capital Markets Board of
Turkey for operational permissions.
5)
On 19 February 2013, the Bank has applied to Capital Markets Board of Turkey for a bond
issuance of TL 100,000 with 371 days maturity. Furthermore, the Bank has signed an
intermediation agreement with Alternatif Yatırım A.Ş. regarding the related bond issuance.
…………………………
58
Contents
ABANK AT A GLANCE
ABank in Brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02
Vision, Mission and Working Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Message from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Message from the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Senior Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Activities in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
International Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Market Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Research and Development Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
MANAGEMENT AND CORPORATE GOVERNANCE
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Information on Human Resources Implementations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Organization Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
FINANCIAL INFORMATION AND RISK MANAGEMENT
Risk Management Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Anadolu Group in Brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Anadolu Group Financial Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
ABank Financial Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
AYatırım . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Alternatif Yatırım Ortaklığı . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Financial Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Alternatifbank A.Ş. Consolidated Financial Statements Together With Auditor’s Report 31 December 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
The first letter of growth
Head Office: Cumhuriyet Cad. No: 46 34367 Şişli/Istanbul-TURKEY
T: +90212 315 65 00 F: +90212 225 76 15
www.abank.com.tr

ABank Annual Report 2012 - Shareholder Information

Transcription

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