201. I - İş Bankası

Transcription

201. I - İş Bankası

TÜRKİYE İŞ BANKASI ANONİM ŞİRKETİ
THE CONSOLIDATED INTERIM FINANCIAL REPORT
AS AT AND FOR THE THREE-MONTH PERIOD ENDED
31 MARCH 2015
Headquarters Address: İş Kuleleri, 34330, Levent/İstanbul
Telephone: 0212 316 00 00
Fax: 0212 316 09 00
Web Site: www.isbank.com.tr
E-mail: [email protected]
The consolidated interim financial report as at and the for the three-month period ended prepared in accordance with the communiqué of “Financial
Statements and Related Disclosures and Footnotes to be Announced to Public by Banks” as regulated by Banking Regulation and Supervision Agency,
comprises the following sections:







GENERAL INFORMATION ABOUT THE PARENT BANK
CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF THE PARENT BANK
EXPLANATIONS ON THE ACCOUNTING POLICIES APPLIED IN THE CURRENT PERIOD
INFORMATION ON THE FINANCIAL POSITION OF THE GROUP
DISCLOSURES AND FOOTNOTES ON THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
OTHER EXPLANATIONS
LIMITED REVIEW REPORT
Associates, subsidiaries and special Purpose Entities whose financial statements have been consolidated in the consolidated financial report are as
follows:
Subsidiaries
Associates
ANADOLU ANONİM TÜRK SİGORTA ŞİRKETİ
ANADOLU HAYAT EMEKLİLİK A.Ş.
CLOSED JOINT STOCK COMPANY İŞBANK (CJSC İŞBANK)
EFES VARLIK YÖNETİM A.Ş.
IS INVESTMENTS GULF LTD.
İŞ FAKTORİNG A.Ş.
İŞ FİNANSAL KİRALAMA A.Ş.
İŞ GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.
İŞ GİRİŞİM SERMAYESİ YATIRIM ORTAKLIĞI A.Ş.
İŞ PORTFÖY YÖNETİMİ A.Ş.
İŞ YATIRIM MENKUL DEĞERLER A.Ş.
İŞ YATIRIM ORTAKLIĞI A.Ş
R
İŞBANK AG
ARAP-TÜRK BANKASI A.Ş.
MAXIS INVESTMENTS LTD.
MİLLİ REASÜRANS T.A.Ş.
TSKB GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.
TÜRKİYE SINAİ KALKINMA BANKASI A.Ş.
YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş.
Special Purpose Entities
TIB CARD RECEIVABLES FUNDING COMPANY LIMITED
TIB DIVERSIFIED PAYMENT RIGHTS FINANCE COMPANY
The consolidated financial statements and related disclosures and footnotes in this report are prepared, in accordance with the Regulation on the
Procedures and Principles for Accounting Practices and Retention of Documents by Banks, Banking Regulation and Supervision Agency (BRSA)
regulations, Turkish Accounting Standards, Turkish Financial Reporting Standards and the related statements and guidance and in compliance with
the financial records of our Bank. Unless otherwise stated the accompanying consolidated financial report is presented in thousands of Turkish Lira
(TL), and has been subjected to limited review and presented as the attached.
Prof. Dr. Turkay Berksoy
Member of the Board and
the Audit Committee
Füsun Tümsavaş
Deputy Chairman of the Board of Directors
and Chairman of the Audit Committee
Ali Tolga Ünal
Head of Financial Management Division
Mahmut Magemizoğlu
Deputy Chief Executive
In Charge of Financial Reporting
The authorized contact person for questions on this consolidated financial report:
Name – Surname / Title: Süleyman H. Özcan / Head of Investor Relations Division
Phone No : +90 212 316 16 02
Fax No
: +90 212 316 08 40
E-mail
: [email protected]
[email protected]
H. Ersin Özince
Chairman of the Board of Directors
Adnan Bali
Chief Executive Officer
Page:
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
SECTION I
General Information about the Parent Bank
Explanations on the Establishment Date and Initial Status of the Parent Bank, and History Including the Changes in the Former Status
Explanations on the Capital Structure, Shareholders who Directly or Indirectly, Solely or Jointly Undertake the Management and Control of the
Parent Bank, any Changes in the Period, and Information on the Parent Bank’s Risk Group
Explanations on the Chairman’s, Directors’, Auditors’, Chief Executive Officer’s and Deputy Chief Executives’ Shares, if any, and the Areas of
their Responsibility at the
Bank
Information on the Parent Bank’s Qualified Shareholders
Summary Information on the Parent Bank’s Functions and Business Lines
Differences between the Communiqué on Preparation of Consolidated Financial Statements of Banks and Turkish Accounting Standards and
Explanation about the Institutions Subject to Line-By-Line Method or Proportional Consolidation and Institutions which are Deducted from Equity
or not Included in These Three Methods
Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholders’ Equity Between the Parent Bank and its Subsidiaries or the
Reimbursement of Liabilities
Written Policies on Assessment of Ensuring Compliance on Market Discipline, Disclosure Obligations, Frequency and Accuracy of the Related
Disclosures
SECTION II
Consolidated Interim Financial Statements
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Consolidated Balance Sheet (Statement of Financial Position) – Assets
Consolidated Balance Sheet (Statement of Financial Position) – Liabilities and Equity
Consolidated Off-Balance Sheet Items
Consolidated Income Statement
Consolidated Statement of Income and Expense Items Accounted under Shareholders’ Equity
Consolidated Statement of Changes in the Shareholders’ Equity
Consolidated Statement of Cash Flows
SECTION III
Explanations on Accounting Policies
Basis of Presentation
Strategy for Use of Financial Instruments and on Foreign Currency Transactions
Information on the Consolidated Companies
Forward, Option Contracts and Derivative Transactions
Interest Income and Expenses
Fees and Commission Income and Expenses
Financial Assets
Impairment of Financial Assets
Offsetting Financial Instruments
Sale and Repurchase Agreements and Securities Lending Transactions
Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
Goodwill and Other Intangible Assets
Tangible Assets
Investment Property
Leasing Transactions
Insurance Technical Income and Expense
Insurance Technical Reserves
Provisions and Contingent Liabilities
Contingent Assets
Liabilities Regarding Employee Benefits
Taxation
Borrowings
Equity Shares and Issuance of Equity Shares
Bank Acceptances and Bills of Guarantee
Government Incentives
Segment Reporting
Other Disclosures
SECTION IV
Information on the Financial Position and Risk Management of the Group
Explanations on Consolidated Capital Adequacy Ratio
Explanations on Consolidated Market Risk
Explanations on Consolidated Currency Risk
Explanations on Consolidated Interest Rate Risk
Explanations on Equity Shares Risk Arising from Banking Book
Explanations on Consolidated Liquidity Risk
Explanations on Securitization Positions
Explanations on Credit Risk Mitigation Techniques
Explanations on Risk Management Objectives and Policies
Explanations on Consolidated Business Segmentation
I.
II.
III.
IV.
V.
VI.
SECTION V
Disclosures and Footnotes on the Consolidated Interim Financial Statements
Disclosures and Footnotes on Consolidated Assets
Disclosures and Footnotes on Consolidated Liabilities
Disclosures and Footnotes on Consolidated Off-Balance Sheet Items
Disclosures and Footnotes on Consolidated Income Statement
Disclosures and Footnotes on the Group’s Risk Group
Subsequent Events
I.
II.
III.
IV.
V.
VI.
VII.
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
XIX.
XX.
XXI.
XXII.
XXIII.
XXIV.
XXV.
XXVI.
XXVII.
1
1
1
2
2
2
4
4
5
6
7
8
9
10
11
12
12
13
15
15
15
15
16
17
17
17
18
18
19
19
19
19
20
20
20
22
24
24
24
24
24
24
25
30
31
33
36
37
38
38
39
41
43
59
68
70
74
76
SECTION VI
Other Explanations
I.
Explanation on the Group’s Credit Ratings
77
SECTION VII
Limited Review Report
I.
II.
Explanations on the Limited Review Report
Explanations and Footnotes of the Independent Auditors
79
79
TÜRKİYE İŞ BANKASI AŞ
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
SECTION ONE: GENERAL INFORMATION ABOUT THE PARENT BANK
I.
Explanations on the Establishment Date and Initial Status of the Parent Bank, and History Including the
Changes in the Former Status
TÜRKİYE İŞ BANKASI A.Ş. (“the Bank” or “the Parent Bank”) was established on 26 August 1924 to operate in all
kinds of banking activities and to initiate and/or participate in all kinds of financial and industrial sector undertakings
when necessary. The Bank status has not been changed since its establishment.
II.
Explanations on the Capital Structure, Shareholders who Directly or Indirectly, Solely or Jointly
Undertake the Management and Control of the Parent Bank, any Changes in the Period, and Information on the
Parent Bank’s Risk Group
As at 31 March 2015, 40.15% of the Bank’s shares are owned by Türkiye İş Bankası A.Ş. Members’ Supplementary
Pension Fund (Fund), 28.09% are owned by the Republican People’s Party-CHP (Atatürk’s shares) and 31.76% are on
free float (31 December 2014: Fund 40.15%, CHP 28.09%, free float 31.76%).
III.
Explanations on the Chairman’s, Directors’, Auditors’, Chief Executive Officer’s and Deputy Chief
Executives’ Shares, if any, and the Areas of their Responsibility at the Bank
Board of Directors:
Name and Surname
H. Ersin Özince
Füsun Tümsavaş
Adnan Bali
Hasan Koçhan
Mustafa Kıcalıoğlu
Aysel Tacer
Hüseyin Yalçın
Murat Vulkan
Prof.Dr.Turkay Berksoy
Kemal Meral
Ulaş Moğultay
Areas of Responsibility
Chairman of the Board and the Remuneration Committee
Deputy Chairman, Audit Committee, TRNC Internal Systems Committee and the Risk Committee, Chairman of the
Corporate Governance Committee, Member of the Credit Committee
Chief Executive Officer and Director, Chairman of the Credit Committee, Member of the Risk Committee, Chairman of
the Executive Committee, Chairman of the Human Resources Committee
Director, Member of the Credit Committee
Director
Director, Member of the Corporate Social Responsibility Committee, Alternate Member of the Credit Committee
Director
Director
Director, Audit Committee, TRNC Internal Systems Committee, Remuneration Committee, and Corporate Governance
Committee, Alternate Member of the Credit Committee
Director
Director, Member of Corporate Social Responsibility Committee
Chief Executive Officer and Deputy Chief Executives:
Name and Surname
Adnan Bali
Mahmut Magemizoğlu
Suat İnce
Hakan Aran
Levent Korba
Ertuğrul Bozgedik
Yalçın Sezen
Rıza İhsan Kutlusoy
Senar Akkuş
İlhami Koç
Yılmaz Ertürk
Ergün Yorulmaz
(1)
Areas of Responsibility
Chief Executive Officer and Director, Chairman of the Credit Committee, Member of the Risk Committee, Chairman of
Executive Committee, Chairman of the Human Resources Committee
Financial Management, Investor Relations, Managerial Reporting and Internal Accounting, Member of the Risk Committee
Corporate and Commercial Banking Marketing, Sales and Product Management, SME and Business Banking Sales, Free
Zone Branches
Digital Banking, Information Technology Management, Data Management
Banking Operations, Retail Loan and Card Operations, Support Services and Purchasing, Foreign Trade and Commercial
Loan Operations, Internal Operations Management, Construction and Real Estate Management, Branch Network
Development
Corporate Loans, SME Loans, Commercial Loans and Consumer Loans Underwriting, Loans Portfolio Management,
Member of the Risk Committee
Consumer Loans, Card Payment Systems, Retail Banking Marketing, Sales and Product Management, Private Banking
Marketing and Sale Management, Member of the Corporate Social Responsibility Committee
Human Resources, Enterprise Architecture, Strategy and Corporate Performance Management and Talent Management,
Coordination of Consumer Relations Officer
Treasury Management, Corporate Communication Management, Corporate Social Responsibility Committee Member of
the Risk Committee
Associates, Cross-Border Banking and Foreign Subsidiaries, Branches and Representative Offices, Capital Markets
Management and the Risk Committee (1)
Economic Research, International Financial Institutions
Retail Banking, Commercial Banking and General Legal Counsellorship, Financial Analysis, Commercial and Corporate
Loans and Retail Loans Monitoring and Recovery Management
İlhami Koç, participate in the meetings of the Risk Committee on a consolidated basis.
1
The Parent Bank’s shares attributable to the Directors and members of the Audit Committee, to the CEO and the Deputy Chief
Executives are of minor importance.
IV.
Information on the Parent Bank’s Qualified Shareholders
Name Surname/Company
T. İş Bankası A.Ş. Mensupları Munzam Sosyal Güvenlik ve
Yardımlaşma Sandığı Vakfı (“İşbank Members’ Supplementary
Pension Fund”)
Cumhuriyet Halk Partisi – Republican People’s Party (Atatürk’s
Shares)
V.
Shares
Ownership
Paid-in Capital
1,806,553
40.15 %
1,806,553
1,264,142
28.09 %
1,264,142
Unpaid
Capital
Summary Information on the Parent Bank’s Functions and Business Lines
In line with the relevant legislation and principles stated in the Articles of Incorporation of the Bank, the Parent Bank’s
activities include operating in retail, commercial, corporate and private banking, foreign currency and money market
operations, marketable securities operations, international banking services and other banking operations, as well as
initiating or participating in all kinds of financial and industrial sector corporations as may be required.
VI.
Differences between the Communiqué on Preparation of Consolidated Financial Statements of Banks
and Turkish Accounting Standards and Explanation about the Institutions Subject to Line-By-Line Method or
Proportional Consolidation and Institutions which are Deducted from Equity or not Included in These Three
Methods
Banks are obligated to prepare consolidated financial statements for credit institutions and financial subsidiaries for
creating legal restrictions on a consolidated basis based on the “Communiqué on Preparation of Consolidated Financial
Statements of Banks” by applying Turkish Accounting Standards. There is not any difference between the related
Communiqué and the consolidation operations that is based on Turkish Accounting Standards and Turkish Financial
Reporting Standards. The consolidated financial statement includes the subsidiaries of the Bank which are credit
institutions or financial institutions accordance with the BRSA regulations. As of current there is no credit institution or
financial institution subsidiaries which are excluded in the scope of the consolidation.
The information about the organizations in the scope of the consolidation:
The Parent Bank and its subsidiaries;
- ANADOLU ANONİM TÜRK SİGORTA ŞİRKETİ
- ANADOLU HAYAT EMEKLİLİK A.Ş.
- CJSC İŞBANK
- EFES VARLIK YÖNETİM A.Ş.
- IS INVESTMENTS GULF LTD.
- İŞ FAKTORİNG A.Ş.
- İŞ FİNANSAL KİRALAMA A.Ş.
- İŞ GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.
- İŞ GİRİŞİM SERMAYESİ YATIRIM ORTAKLIĞI A.Ş.
- İŞ PORTFÖY YÖNETİMİ A.Ş.
- İŞ YATIRIM MENKUL DEĞERLER A.Ş.
- IŞ YATIRIM ORTAKLIĞI A.Ş.
- İŞBANK AG
- MAXIS INVESTMENTS LTD.
- MİLLİ REASÜRANS T.A.Ş.
- TSKB GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.
- TÜRKİYE SINAI KALKINMA BANKASI A.Ş.
- YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş.
and Special Purpose Entities,
- TIB Diversified Payment Rights Finance Company
- TIB Card Receivables Funding Company Limited
are fully consolidated,
2
Its associate;
- ARAP-TÜRK BANKASI A.Ş.
is accounted under equity accounting method.
Consolidated companies are active in the areas of banking, insurance and reinsurance, private pensions, finance leasing,
factoring, real estate investment, venture capital investment, brokerage, investment consulting, portfolio and asset
management. Those companies are explained below.
Anadolu Anonim Türk Sigorta Şirketi
The Company was established in 1925 and operates in almost all non-life insurance service. The headquarter of the
Company is in Istanbul. The Company’s shares are traded in the Borsa İstanbul A.Ş.
Anadolu Hayat Emeklilik A.Ş.
The Company was founded in 1990 and its’ headquarter is in Istanbul. The company’s main activities are private
individual or group pension and life/death insurance and due to this branch are engaged in all kinds of insurance. There
are 24 private pension funds founded by the company. The company’s shares are traded in the Borsa Istanbul A.Ş.
CJSC İşbank
The Bank, which was founded in 1998 and headquartered in Moscow, operating banking services by focusing on deposit,
loan and brokerage operations with its 9 branches in several regions of Russian Federation.
Efes Varlık Yönetim A.Ş.
The field of activity of the company, which was founded in February 2011 is to purchase and sell the receivables with
other assets of deposit banks, participation banks and other financial institutions. The Company’s headquarter is located
İstanbul.
Is Investments Gulf Ltd.
The purpose of the Company, which was founded in Dubai in the year 2011, is to operate brokerage activities mainly
capital markets in the gulf region.
İş Faktoring A.Ş.
The field of operation of the Company, which operates in the factoring sector since 1993, is domestic and foreign
factoring operations. The Company’s headquarter is in Istanbul.
İş Finansal Kiralama A.Ş.
The Company, whose field of activity is financial leasing within the country and abroad started its business in 1988. The
headquarters of the Company is in Istanbul. The Company’s shares are traded in the Borsa İstanbul A.Ş.
İş Gayrimenkul Yatırım Ortaklığı A.Ş.
The Company whose main field of activity is investing in real estate, capital market instruments backed by real estate,
real estate projects and capital market instruments is conducting its business in the sector as a real estate investment trust
since 1999. The Company’s shares are traded in the Borsa İstanbul A.Ş. since its establishment.
İş Girişim Sermayesi Yatırım Ortaklığı A.Ş.
Having started its venture capital business in the year 2000, the aim of the company is performing long-term investments
to venture companies which have potential development and need resources where was founded and established in
Turkey. The company’s shares are traded in the Borsa İstanbul A.Ş. since the year 2004.
İş Portföy Yönetimi A.Ş.
The purpose of the Company, which was founded in 2000, is to engage in capital market operations stated in its articles
of association. Among the capital market operations, the company offers portfolio management and investment
consulting services only to corporate investors.
İş Yatırım Menkul Değerler A.Ş.
The Company’s main field of activity is composed of intermediary, corporate finance, investment consulting and private
portfolio management services. The Company’s shares are traded in the Borsa İstanbul A.Ş. since May 2007. As of 30
June 2014, company took over through merger its consolidated associate Camiş Menkul Değerler A.Ş.
3
İş Yatırım Ortaklığı A.Ş.
The aim of the Company, which was founded in İstanbul in the year 1995, is operating capital market activities which is
located in the principal agreement, is portfolio management. The Company’s shares are traded in the Borsa İstanbul A.Ş.
since April 1996. The company name was changed from İŞ B Tipi Yatırım Ortaklığı A.Ş. to İş Yatırım Ortaklığı A.Ş as
of the date of April 2014.
İşbank AG
İşbank AG was founded to carry out the banking transactions in Europe. İşbank AG has 17 branches in total, 13 branches
in Germany, 1 branch in Netherlands, France, Switzerland and Bulgaria.
Maxis Investments Ltd.
The purpose of the Company, which was founded in England in the year 2005, is to operate in activities in foreign capital
markets.
Milli Reasürans T.A.Ş.
The Company, which was founded in 1929 to provide reinsurance services is located in Istanbul.
TSKB Gayrimenkul Yatırım Ortaklığı A.Ş.
The major field of activity of the Company, which was founded in 2006, is to create and develop an investment property
portfolio and to invest in capital market instruments that are based on investment properties. The Company’s shares are
traded in the Borsa İstanbul A.Ş. since April 2010.
Türkiye Sınai Kalkınma Bankası A.Ş.
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) which is an industrial development and an investment bank is founded
especially to support private sector investments in industry and to provide domestic and foreign capital to Turkish
companies. The Bank’s shares are traded in the Borsa İstanbul A.Ş.
Yatırım Finansman Menkul Değerler A.Ş.
The Company was founded in İstanbul in 1976. The purpose of the Company is to engage in capital market operations
stated in its articles of association. The company's headquarters is in Istanbul.
VII.
Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholders’ Equity Between the
Parent Bank and its Subsidiaries or the Reimbursement of Liabilities
None.
VIII. Written Policies on Assessment of Ensuring Compliance on Market Discipline, Disclosure Obligations,
Frequency and Accuracy of the Related Disclosures
The Parent Bank has written policies on assessment of ensuring compliance on market discipline, disclosure obligations,
frequency and accuracy of related disclosures. The mentioned policies which are agreed by Board can be obtained from
the Parent Bank’s website.
4
TÜRKİYE İŞ BANKASI A.Ş. CONSOLIDATED FINANCIAL STATEMENTS (STATEMENT OF FINANCIAL POSITION)
THOUSAND TL
ASSETS
Footnotes
TL
I.
II.
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.2.3
2.2.4
III.
IV.
4.1
4.2
4.3
V.
5.1
5.2
5.3
VI.
6.1
6.1.1
6.1.2
6.1.3
6.2
6.3
VII.
VIII.
8.1
8.2
IX.
9.1
9.2
9.2.1
9.2.2
X.
10.1
10.2
XI.
11.1
11.2
11.2.1
11.2.2
XII.
12.1
12.2
12.3
12.4
XIII.
13.1
13.2
13.3
XIV.
XV.
15.1
15.2
XVI.
XVII.
17.1
17.2
XVIII.
18.1
18.2
XIX.
CASH AND BALANCES WITH THE CENTRAL BANK
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (Net)
Financial Assets Held for Trading
Government Debt Securities
Equity Securities
Derivative Financial Assets Held for Trading
Other Marketable Securities
Financial Assets at Fair Value Through Profit and Loss
Equity Securities
Loans
BANKS
MONEY MARKET PLACEMENTS
Interbank Money Market Placements
Istanbul Stock Exchange Money Market Placements
Receivables from Reverse Repurchase Agreements
FINANCIAL ASSETS AVAILABLE-FOR-SALE (Net)
Equity Securities
LOANS AND RECEIVABLES
Loans and Receivables
Loans to the Bank's Risk Group
Other
Non-Performing Loans
Specific Provisions (-)
FACTORING RECEIVABLES
HELD TO MATURITY INVESTMENTS (Net)
INVESTMENTS IN ASSOCIATES (Net)
Associates Accounted for Using the Equity Method
Unconsolidated Associates
Financial Investments
Non-Financial Investments
INVESTMENTS IN SUBSIDIARIES (Net)
Unconsolidated Financial Subsidiaries
Unconsolidated Non-Financial Subsidiaries
JOINTLY CONTROLLED ENTITIES (JOINT VENTURES) (Net)
Jointly Controlled Entities Accounted for Using the Equity Method
Unconsolidated Jointly Controlled Entities
Jointly Controlled Financial Entities
Jointly Controlled Non-Financial Entities
LEASE RECEIVABLES
Finance Lease Receivables
Operating Lease Receivables
Other
Unearned Income (-)
DERIVATIVE FINANCIAL ASSETS HELD FOR HEDGING
Fair Value Hedges
Cash Flow Hedges
Net Foreign Investment Hedges
TANGIBLE ASSETS (Net)
INTANGIBLE ASSETS (Net)
Goodwill
Other
INVESTMENT PROPERTY (Net)
TAX ASSETS
Current Tax Assets
Deferred Tax Assets
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net)
Held for Sale
Discontinued Operations
OTHER ASSETS
TOTAL ASSETS
V-I-a
V-I-b
V-I-c
V-I-d
V-I-e
V-I-f
V-I-g
V-I-h
V-I-i
V-I-j
V-I-k
V-I-l
V-I-m
V-I-n
V-I-o
CURRENT PERIOD
(31/03/2015)
FC
Total
TL
PRIOR PERIOD
(31/12/2014)
FC
Total
4,338,375
1,343,546
1,343,546
538,827
62,663
200,780
541,276
1,501,942
173,072
153,590
19,482
39,312,092
87,003
38,552,383
672,706
107,178,936
106,422,403
119,312
106,303,091
2,727,967
1,971,434
1,300,929
1,140,183
1,101,289
38,894
804,333
114,796
689,537
689,537
4,346,294
4,346,294
1,043,294
1,275,697
1,871
234,274
2,332,350
457,041
35,974
421,067
1,440,245
668,806
59,126
609,680
69,993
69,993
11,425,132
23,373,249
1,286,531
1,286,531
12,665
1
1,240,963
32,902
5,944,304
15,598
15,598
9,236,648
6,492
8,023,329
1,206,827
71,473,266
71,465,504
331,393
71,134,111
135,205
127,443
203,660
53,004
53,004
1,885,304
2,151,854
266,550
13,101
13,101
84,572
6,560
6,560
13,695
5,250
8,445
94
94
1,553,651
27,711,624
2,630,077
2,630,077
551,492
62,664
1,441,743
574,178
7,446,246
188,670
153,590
35,080
48,548,740
93,495
46,575,712
1,879,533
178,652,202
177,887,907
450,705
177,437,202
2,863,172
2,098,877
1,504,589
1,193,187
1,101,289
91,898
804,333
114,796
689,537
689,537
4,346,294
4,346,294
2,928,598
3,427,551
1,871
500,824
13,101
13,101
2,416,922
463,601
35,974
427,627
1,440,245
682,501
64,376
618,125
70,087
70,087
12,978,783
4,762,412
1,367,861
1,367,861
480,074
69,843
231,499
586,445
3,409,819
256,548
210,109
46,439
37,461,468
94,073
36,694,393
673,002
103,048,356
102,362,890
117,710
102,245,180
2,579,077
1,893,611
1,203,167
1,340,853
1,307,192
33,661
800,709
111,422
689,287
689,287
4,810,446
4,810,446
933,928
1,137,663
2,352
206,087
2,303,693
374,598
35,974
338,624
1,387,651
656,624
29,060
627,564
65,908
65,908
10,834,402
20,381,135
892,309
892,309
10,254
849,572
32,483
2,596,638
7,011
7,011
8,215,661
6,492
7,184,137
1,025,032
65,279,732
65,270,402
327,516
64,942,886
120,424
111,094
230,042
51,007
51,007
1,812,271
2,081,338
269,067
83,156
6,899
6,899
15,049
4,676
10,373
85
85
1,186,995
25,143,547
2,260,170
2,260,170
490,328
69,843
1,081,071
618,928
6,006,457
263,559
210,109
53,450
45,677,129
100,565
43,878,530
1,698,034
168,328,088
167,633,292
445,226
167,188,066
2,699,501
2,004,705
1,433,209
1,391,860
1,307,192
84,668
800,709
111,422
689,287
689,287
4,810,446
4,810,446
2,746,199
3,219,001
2,352
475,154
2,386,849
381,497
35,974
345,523
1,387,651
671,673
33,736
637,937
65,993
65,993
12,021,397
178,876,563
115,143,237
294,019,800
175,018,443
100,757,990
275,776,433
5
TÜRKİYE İŞ BANKASI A.Ş. CONSOLIDATED FINANCIAL STATEMENTS (STATEMENT OF FINANCIAL POSITION)
THOUSAND TL
LIABILITIES
Footnotes
TL
I.
1.1
1.2
II.
III.
IV.
4.1
4.2
4.3
V.
5.1
5.2
5.3
VI.
6.1
6.2
VII.
VIII.
IX.
X.
10.1
10.2
10.3
10.4
XI.
11.1
11.2
11.3
XII.
12.1
12.2
12.3
12.4
12.5
XIII.
13.1
13.2
XIV.
DEPOSITS
Deposits from the Bank's Risk Group
Other
DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING
FUNDS BORROWED
MONEY MARKET FUNDS
Interbank Money Market Funds
Istanbul Stock Exchange Money Market Funds
Funds Provided Under Repurchase Agreements
MARKETABLE SECURITIES ISSUED (Net)
Bills
Asset-backed Securities
Bonds
FUNDS
Borrower funds
Other
MISCELLANEOUS PAYABLES
OTHER LIABILITIES
FACTORING PAYABLES
LEASE PAYABLES (Net)
Finance Lease Payables
Operating Lease Payables
Other
Deferred Financial Lease Expenses (-)
DERIVATIVE FINANCIAL LIABILITIES HELD FOR RISK MANAGEMENT
Fair Value Hedges
Cash Flow Hedges
PROVISIONS
General Loan Loss Provisions
Provision for Restructuring
Reserves for Employee Benefits
Insurance Technical Reserves (Net)
Other Provisions
TAX LIABILITIES
Current Tax Liabilities
Deferred Tax Liabilities
LIABILITIES RELATED TO ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS
Held for Sale
14.1
Discontinued Operations
14.2
SUBORDINATED DEBT
XV.
SHAREHOLDERS' EQUITY
XVI.
Paid-in Capital
16.1
Capital Reserves
16.2
16.2.1 Share premium
16.2.2 Share Cancellation Profits
16.2.3 Marketable Securities Value Increase Fund
16.2.4 Tangible Assets Revaluation Reserve
16.2.5 Intangible Assets Revaluation Reserve
16.2.6 Investment Property Revaluation Reserve
16.2.7 Bonus Shares Obtained from Associates, Subsidiaries and Jointly Controlled
Entities (Joint Ventures)
16.2.8 Hedging Reserves (Effective Portion)
16.2.9 Accumulated Revaluation Reserves on Assets Held for Sale and Discontinued
Operations
16.2.10 Other Capital Reserves
Profit Reserves
16.3
16.3.1 Legal Reserves
16.3.2 Statutory Reserves
16.3.3 Extraordinary Reserves
16.3.4 Other Profit Reserves
Profit or Loss
16.4
16.4.1 Prior Years' Profit/Loss
16.4.2 Current Period Profit/Loss
16.5
Non-controlling Interest
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
V-II-a
V-II-b
V-II-c
V-II-d
V-II-e
V-II-f
V-II-g
V-II-h
V-II-i
V-II-j
V-II-k
CURRENT PERIOD
(31/03/2015)
FC
Total
PRIOR PERIOD
(31/12/2014)
FC
TL
Total
73,718,628
699,966
73,018,662
381,024
5,971,713
17,163,485
2,552,869
14,610,616
6,050,321
4,856,590
1,193,731
979
979
14,949,139
1,435,808
11,483,036
2,639,195
550,029
4,718,536
3,575,276
458,345
456,463
1,882
71,420,955
2,703,072
68,717,883
736,325
34,839,395
3,163,027
3,163,027
13,802,677
2,317,922
11,484,755
34,972
34,972
1,073,585
1,816,261
852,088
33,520
2,014
790,486
26,068
6,079
6,079
-
145,139,583
3,403,038
141,736,545
1,117,349
40,811,108
20,326,512
2,552,869
17,773,643
19,852,998
7,174,512
12,678,486
35,951
35,951
16,022,724
3,252,069
12,335,124
2,672,715
552,043
5,509,022
3,601,344
464,424
462,542
1,882
72,045,192
560,159
71,485,033
260,929
5,094,210
19,104,474
2,291,363
16,813,111
6,146,268
4,561,693
1,584,575
623
623
13,547,566
1,483,272
11,272,580
2,447,646
522,159
4,533,412
3,769,363
747,557
745,675
1,882
62,456,034
2,639,078
59,816,956
488,912
28,965,797
3,200,295
3,200,295
12,450,824
2,339,748
10,111,076
38,458
38,458
847,934
1,714,707
810,935
32,124
1,817
753,987
23,007
2,556
2,556
-
134,501,226
3,199,237
131,301,989
749,841
34,060,007
22,304,769
2,291,363
20,013,406
18,597,092
6,901,441
11,695,651
39,081
39,081
14,395,500
3,197,979
12,083,515
2,479,770
523,976
5,287,399
3,792,370
750,113
748,231
1,882
30,417,675
4,500,000
3,717,522
33,941
2,078,296
(1,179)
3,820,554
423,729
345,589
345,589
-
3,820,554
30,841,404
4,500,000
4,063,111
33,941
2,423,885
(1,179)
31,326,547
4,500,000
4,746,508
33,941
3,107,282
(1,179)
3,384,849
385,914
331,840
331,840
-
3,384,849
31,712,461
4,500,000
5,078,348
33,941
3,439,122
(1,179)
-
-
-
-
-
-
1,606,464
18,566,272
2,773,526
71,201
15,770,482
(48,937)
224,139
(682,289)
906,428
3,409,742
143,253
1,106
22,129
120,018
(88,824)
(87,426)
(1,398)
23,711
1,606,464
18,709,525
2,774,632
71,201
15,792,611
71,081
135,315
(769,715)
905,030
3,433,453
1,606,464
15,811,864
2,510,521
64,234
13,278,217
(41,108)
2,790,336
(594,975)
3,385,311
3,477,839
113,192
1,106
22,129
89,957
(87,426)
(53,943)
(33,483)
28,308
1,606,464
15,925,056
2,511,627
64,234
13,300,346
48,849
2,702,910
(648,918)
3,351,828
3,506,147
162,030,153
131,989,647
294,019,800
161,029,218
114,747,215
275,776,433
6
TÜRKİYE İŞ BANKASI A.Ş. CONSOLIDATED STATEMENT OF OFF-BALANCE SHEET ITEMS
THOUSAND TL
OFF-BALANCE SHEET ITEMS
Footnotes
TL
A. OFF-BALANCE SHEET CONTINGENCIES AND COMMITMENTS (I+II+III)
I.
GUARANTEES AND SURETYSHIPS
1.1.
Letters of Guarantee
1.1.1.
Guarantees Subject to State Tender Law
1.1.2.
Guarantees Given for Foreign Trade Operations
1.1.3.
Other Letters of Guarantee
1.2.
Bank Acceptances
1.2.1.
Import Letters of Acceptance
1.2.2.
Other Bank Acceptances
1.3.
Letters of Credit
1.3.1.
Documentary Letters of Credit
1.3.2.
Other Letters of Credit
1.4.
Prefinancing Given as Guarantee
1.5.
Endorsements
1.5.1.
Endorsements to the Central Bank of Turkey
1.5.2.
Other Endorsements
1.6.
Purchase Guarantees for Securities Issued
1.7.
Factoring Guarantees
1.8.
Other Guarantees
1.9.
Other Suretyships
II.
COMMITMENTS
2.1.
Irrevocable Commitments
2.1.1.
Forward Asset Purchase Commitments
2.1.2.
Forward Deposit Purchase and Sale Commitments
2.1.3.
Capital Commitment for Associates and Subsidiaries
2.1.4.
Loan Granting Commitments
2.1.5.
Securities Underwriting Commitments
2.1.6.
Commitments for Reserve Deposit Requirements
2.1.7.
Commitments for Cheque Payments
2.1.8.
Tax and Fund Liabilities from Export Commitments
2.1.9.
Commitments for Credit Card Expenditure Limits
2.1.10.
Commitments for Credit Cards and Banking Services Promotions
2.1.11.
Receivables from Short Sale Commitments
2.1.12.
Payables for Short Sale Commitments
2.1.13.
Other Irrevocable Commitments
2.2.
Revocable Commitments
2.2.1.
Revocable Loan Granting Commitments
2.2.2.
Other Revocable Commitments
III.
DERIVATIVE FINANCIAL INSTRUMENTS
3.1
Derivative Financial Instruments held for risk management
3.1.1
Fair Value Hedges
3.1.2
Cash Flow Hedges
3.1.3
3.2
Derivative Financial Instruments Held for Trading
3.2.1
Forward Foreign Currency Buy/Sell Transactions
3.2.1.1
Forward Foreign Currency Buy Transactions
3.2.1.2
Forward Foreign Currency Sell Transactions
3.2.2
Currency and Interest Rate Swaps
3.2.2.1
Currency Swap Buy Transactions
3.2.2.2
Currency Swap Sell Transactions
3.2.2.3
Interest Rate Swap Buy Transactions
3.2.2.4
Interest Rate Swap Sell Transactions
3.2.3
Currency, Interest Rate and Security Options
3.2.3.1
Currency Call Options
3.2.3.2
Currency Put Options
3.2.3.3
Interest Rate Call Options
3.2.3.4
Interest Rate Put Options
3.2.3.5
Securities Call Options
3.2.3.6
Securities Put Options
3.2.4
Currency Futures
3.2.4.1
Currency Buy Futures
3.2.4.2
Currency Sell Futures
3.2.5
Interest Rate Futures
3.2.5.1
Interest Rate Buy Futures
3.2.5.2
Interest Rate Sell Futures
3.2.6
Other
B. CUSTODY AND PLEDGED ITEMS (IV+V+VI)
IV.
ITEMS HELD IN CUSTODY
4.1.
Customers’ Securities Held
4.2.
Investment Securities Held in Custody
4.3.
Cheques Received for Collection
4.4.
Commercial Notes Received for Collection
4.5.
Other Assets Received for Collection
4.6.
Assets Received for Public Offering
4.7.
Other Items under Custody
4.8.
Custodians
V.
PLEDGED ITEMS
5.1.
Marketable Securities
5.2.
Guarantee Notes
5.3.
Commodity
5.4.
Warranty
5.5.
Real Estates
5.6.
Other Pledged Items
5.7.
Pledged Items-Depository
VI.
ACCEPTED BILL GUARANTEES AND SURETIES
TOTAL OFF-BALANCE SHEET ITEMS (A+B)
V-III
CURRENT PERIOD
(31/03/2015)
FC
Total
TL
PRIOR PERIDOD
(31/12/2014)
FC
Total
92,675,634
18,921,334
18,665,355
754,613
3,456,734
14,454,008
3,735
3,735
83,442
168,802
43,180,679
42,415,896
482,448
9,280,363
6,109,390
20,273
21,125,449
84,497
12,429
5,301,047
764,783
764,783
30,573,621
30,573,621
2,512,633
1,298,360
1,214,273
24,893,495
7,611,807
13,413,808
1,933,940
1,933,940
2,807,097
1,533,465
1,171,377
71,321
30,934
21
21
360,375
329,696,100
130,580,185
29,962,737
18,039,527
2,799,208
5,657,164
9,583,155
1,654,886
307,674
1,347,212
9,445,986
7,031,722
2,414,264
7,742
814,596
16,229,148
6,643,655
5,046,329
403,472
1,193,854
9,585,493
9,585,493
84,388,300
2,277,440
2,277,440
82,110,860
6,188,092
3,028,898
3,159,194
64,315,053
23,741,020
15,521,295
12,526,369
12,526,369
7,868,714
2,959,408
3,289,330
780,497
780,497
58,982
455
435
20
3,738,546
179,367,428
223,255,819
48,884,071
36,704,882
3,553,821
9,113,898
24,037,163
1,658,621
307,674
1,350,947
9,445,986
7,031,722
2,414,264
91,184
983,398
59,409,827
49,059,551
5,528,777
9,683,835
6,109,390
20,273
21,125,449
84,497
12,429
6,494,901
10,350,276
10,350,276
114,961,921
2,277,440
2,277,440
112,684,481
8,700,725
4,327,258
4,373,467
89,208,548
31,352,827
28,935,103
14,460,309
14,460,309
10,675,811
4,492,873
4,460,707
780,497
780,497
71,321
89,916
476
456
20
4,098,921
509,063,528
85,747,317
18,327,481
18,080,951
741,815
3,205,517
14,133,619
9,813
9,813
88,602
148,115
41,486,251
40,998,494
67,689
9,429,052
5,875,007
17,932
20,489,527
93,072
9,784
5,016,431
487,757
487,757
25,933,585
25,933,585
2,714,269
1,822,359
891,910
20,108,674
5,688,362
10,533,432
1,943,440
1,943,440
3,089,757
1,671,738
1,391,746
21,813
4,460
20,885
310,820,922
109,096,113
26,335,832
16,568,615
2,975,340
5,001,864
8,591,411
1,219,918
413,697
806,221
7,763,406
5,580,303
2,183,103
11,941
771,952
10,949,790
2,863,091
977,497
121,296
527,744
1,236,554
8,086,699
8,086,699
71,810,491
71,810,491
5,622,700
2,346,843
3,275,857
54,556,119
18,851,307
12,171,340
11,766,736
11,766,736
9,344,729
3,817,040
4,062,605
718,420
718,420
28,244
2,286,943
163,759,459
194,843,430
44,663,313
34,649,566
3,717,155
8,207,381
22,725,030
1,229,731
413,697
816,034
7,763,406
5,580,303
2,183,103
100,543
920,067
52,436,041
43,861,585
1,045,186
121,296
9,956,796
5,875,007
17,932
20,489,527
93,072
9,784
6,252,985
8,574,456
8,574,456
97,744,076
97,744,076
8,336,969
4,169,202
4,167,767
74,664,793
24,539,669
22,704,772
13,710,176
13,710,176
12,434,486
5,488,778
5,454,351
718,420
718,420
21,813
32,704
2,307,828
474,580,381
132,399,470
113,527,233
13,205,362
2,476,714
13,581
2,541
1,267,407
1,906,632
197,296,630
10,063,387
6,280,366
42,879,920
126,770,460
11,302,497
-
11,556,280
829,533
3,620,991
5,957,335
2,356
1,146,065
167,811,148
14,198,355
11,697,360
10,875,103
84,829,104
46,211,226
-
143,955,750
114,356,766
16,826,353
8,434,049
15,937
2,541
2,413,472
1,906,632
365,107,778
24,261,742
17,977,726
53,755,023
211,599,564
57,513,723
-
127,338,013
109,012,485
12,836,400
2,464,130
9,682
2,541
1,259,262
1,753,513
183,482,909
9,424,785
6,034,317
39,383,197
118,504,932
10,135,678
-
10,976,275
816,659
3,297,909
5,685,294
4,143
1,172,270
152,783,184
12,662,712
11,016,838
10,293,413
77,658,683
41,151,538
-
138,314,288
109,829,144
16,134,309
8,149,424
13,825
2,541
2,431,532
1,753,513
336,266,093
22,087,497
17,051,155
49,676,610
196,163,615
51,287,216
-
422,371,734
309,947,613
732,319,347
396,568,239
272,855,572
669,423,811
7
TURKIYE IS BANKASI A.S. CONSOLIDATED INCOME STATEMENT
INCOME STATEMENT
I.
1.1
1.2
1.3
1.4
1.5
1.5.1
1.5.2
1.5.3
1.5.4
1.6
1.7
II.
2.1
2.2
2.3
2.4
2.5
III.
IV.
4.1
4.1.1
4.1.2
4.2
4.2.1
4.2.2
V.
VI.
6.1
6.2
6.3
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.
XVI.
16.1
16.2
XVII.
XVIII.
18.1
18.2
18.3
XIX.
19.1
19.2
19.3
XX.
XXI.
21.1
21.2
XXII.
XXIII.
23.1
23.2
INTEREST INCOME
Interest Income on Loans
Interest Income on Reserve Deposits
Interest Income on Banks
Interest Income on Money Market Placements
Interest Income on Marketable Securities Portfolio
Financial Assets at Fair Value Through Profit and Loss
Financial Assets Available for Sale
Held to Maturity Investments
Finance Lease Income
Other Interest Income
INTEREST EXPENSE
Interest on Deposits
Interest on Funds Borrowed
Interest on Money Market Funds
Interest on Securities Issued
Other Interest Expense
NET INTEREST INCOME / EXPENSE (I - II)
NET FEES AND COMMISSIONS INCOME / EXPENSE
Fees and Commissions Received
Non-cash Loans
Other
Fees and Commissions Paid
Non-cash Loans
Other
DIVIDEND INCOME
TRADING INCOME / LOSS (NET)
Gains/Losses on Securities Trading
Derivative Financial Transactions Gains/Losses
Foreign Exchange Gains/Losses
OTHER OPERATING INCOME
TOTAL OPERATING INCOME / EXPENSE (III+IV+V+VI+VII)
PROVISION FOR LOSSES ON LOANS AND OTHER RECEIVABLES (-)
OTHER OPERATING EXPENSES (-)
NET OPERATING INCOME (VIII-IX-X)
AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER
PROFIT/LOSS FROM ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD
NET MONETARY POSITION GAIN/LOSS
PROFIT/LOSS ON CONTINUING OPERATIONS BEFORE TAX (XI+…+XIV)
TAX PROVISION FOR CONTINUING OPERATIONS (±)
Current Tax Provision
Deferred Tax Provision
NET PERIOD PROFIT/LOSS FROM CONTUNUING OPERATIONS (XV±XVI)
INCOME ON DISCONTINUED OPERATIONS
Income on Assets Held for Sale
Gain on Sale of Associates, Subsidiaries and Jointly Controlled Entities (Joint Ventures)
Other Income on Discontinued Operations
EXPENSE ON DISCONTINUED OPERATIONS(-)
Expense on Assets Held for Sale
Loss on Sale of Associates, Subsidiaries and Jointly Controlled Entities (Joint Ventures)
Other Expense on Discontinued Operations
PROFIT/LOSS ON DISCONTINUED OPERATIONS BEFORE TAX (XVIII-XIX)
TAX PROVISION FOR DISCONTINUED OPERATIONS (±)
Current Tax Provision
Deferred Tax Provision
NET PERIOD PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI)
NET PERIOD PROFIT/LOSS (XVII+XXII)
Group’s Profit / Loss
Non-controlling Interest (-)
Earnings per Share (in full TL)
Footnotes
V-IV-a
V-IV-b
V-IV-c
V-IV-d
V-IV-e
V-IV-f
V-IV-g
V-IV-g
V-IV-h
THOUSAND TL
CURRENT PERIOD
PRIOR PERIOD
(01/01-31/03/2015)
(01/01-31/03/2014)
4,899,272
3,749,035
76,909
6,241
972,188
20,737
923,928
27,523
59,431
35,468
2,655,624
1,481,599
264,515
559,707
334,689
15,114
2,243,648
423,635
654,489
84,217
570,272
230,854
2,012
228,842
41,025
178,887
119,554
(194,799)
254,132
1,460,357
4,347,552
687,895
2,403,862
1,255,795
3,374
1,259,169
254,095
90,027
164,068
1,005,074
1,005,074
905,030
100,044
4,230,700
3,093,663
42,494
691
1,025,587
36,221
715,547
273,819
39,668
28,597
2,202,142
1,341,717
171,109
443,534
222,538
23,244
2,028,558
346,875
580,415
70,339
510,076
233,540
1,969
231,571
113,261
169,107
6,323
(512,904)
675,688
1,263,727
3,921,528
660,204
2,169,613
1,091,711
3,832
1,095,543
269,505
321,644
(52,139)
826,038
826,038
751,708
74,330
0.008044550
0.006681715
8
TÜRKİYE İŞ BANKASI A.Ş. CONSOLIDATED STATEMENT OF INCOME AND EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS’ EQUITY
THOUSAND TL
INCOME AND EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS’ EQUITY
CURRENT PERIOD
PRIOR PERIOD
(01/01-31/03/2015)
(01/01-31/03/2014)
I.
ADDITIONS TO MARKETABLE SECURITIES VALUE INCREASE FUND FROM FINANCIAL ASSETS AVAILABLE FOR SALE
(679,832)
59,651
II.
REVALUATION SURPLUS ON TANGIBLE ASSETS
-
-
III.
REVALUATION SURPLUS ON INTANGIBLE ASSETS
-
-
IV.
TRANSLATION ADJUSTMENT FOR FOREIGN CURRENCY TRANSACTIONS
22,232
(39,017)
V.
PROFIT/LOSS ON DERIVATIVE FINANCIAL ASSETS HELD FOR CASH FLOW HEDGES (Effective Portion of the Changes in Fair Value)
-
-
VI.
PROFIT/LOSS ON DERIVATIVE FINANCIAL ASSETS HELD FOR NET FOREIGN INVESTMENT HEDGES (Effective Portion of the Changes in Fair Value)
-
-
VII.
THE EFFECT OF CORRECTIONS OF THE ERRORS AND CHANGES IN THE ACCOUNTING POLICIES
-
-
VIII.
OTHER INCOME AND EXPENSES RECOGNISED UNDER SHAREHOLDERS’ EQUITY ACCORDANCE WITH TAS
(472,668)
(377,636)
IX.
DEFERRED TAX EFFECT OF REVALUATION AND VALUE INCREASES
X.
NET INCOME/EXPENSE DIRECTLY RECOGNISED UNDER SHAREHOLDERS’ EQUITY (I+II+…+IX)
XI.
PROFIT/LOSS FOR THE PERIOD
11.1
Net Changes in the Fair Values of Marketable Securities (Transfer to Profit/Loss)
11.2
11.3
11.4
Other
XII.
TOTAL PROFIT/LOSS RECOGNISED FOR THE PERIOD (X±XI)
137,263
7,649
(993,005)
(349,353)
905,030
751,708
(101,071)
(70,256)
The Portion of Derivative Financial Assets Held for Cash Flow Hedges Reclassified in and Transferred to Income Statement
-
-
The Portion of Derivative Financial Assets Held for Net Foreign Investment Hedges Reclassified in and Transferred to Income Statement
-
-
1,006,101
821,964
(87,975)
402,355
9
TÜRKİYE İŞ BANKASI A.Ş. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
THOUSAND TL
CHANGES IN SHAREHOLDERS’ EQUITY
I.
II.
2.1
2.2
III.
PRIOR PERIOD
(31/03/2014)
Beginning Balance
Corrections Made According to TAS 8
The Effect of Corrections of Errors
The Effect of Changes in Accounting Policies
Adjusted Beginning Balance (I+II)
Footnotes
Paid-in
Capital
Paid-in Capital
Inflation Adjustment
Share
Premium
Legal
Reserves
Share Cancellation
Profits
Other
Reserves
Net Current
Period Profit/(Loss)
Prior Period
Profit / (Loss)
Value Increase Fund
Tangible and Intangible
Assets Revaluation Reserve
Bonus Shares from
Equity Participations
Accumulated Rev. Reserve on Asset
Held for Sale and Discontinued Oper.
Hedge
Reserves
Total Shareholders'Equity
Except Non-controlling Interest
Non-controlling
Interest
Total Shreholder's
Equity
1,615,938
33,940
2,286,486
59,539
10,812,744
152,149
2,621,162
680,397
(1,179)
22,761,176
3,133,450
25,894,626
4,500,000
1,615,938
33,940
2,286,486
59,539
10,812,744
152,149
2,621,162
680,397
(1,179)
22,761,176
3,133,450
25,894,626
(310,336)
(39,515)
(349,851)
(39,017)
(235)
(39,252)
751,708
(552,979)
(649,410)
96,431
74,330
(100,947)
(101,516)
569
826,038
(653,926)
(750,926)
97,000
22,610,552
3,067,083
25,677,635
28,206,314
3,506,147
31,712,461
(1,015,237)
(42,545)
(1,057,782)
22,232
(1,023)
21,209
905,030
(710,388)
(841,011)
130,623
100,044
(129,170)
(129,817)
647
1,005,074
(839,558)
(970,828)
131,270
27,407,951
3,433,453
30,841,404
(310,336)
(39,017)
751,708
Ending Balance (III+IV+V...+XVIII+XIX+XX)
4,500,000
1,615,938
33,940
CURRENT PERIOD
(31/03/2015)
Beginning Balance
4,500,000
1,615,938
33,941
-
Changes During the Period
Increase/Decrease Due to Mergers
II.
Marketable Securities Value Increase Fund
III.
Hedge Reserves (Effective Portion)
IV.
4.1
Cash Flow Hedges
4.2
Revaluation Surplus on Tangible Assets
V.
Revaluation Surplus on Intangible Assets
VI.
Bonus Shares from Associates, Subsidiaries and Jointly
VII.
Controlled Entities(Joint Ventures)
VIII. Translation Differences
The Effect of Disposal of Assets
IX.
The Effect of Reclassification of Assets
X.
The Effect of Changes in the Equity of Subsidiaries on the
XI.
Equity of the Bank
Capital Increase
XII.
12.1
Cash
12.2
Internal Sources
XIII. Share Issue
XIV. Share Cancellation Profits
Paid-in-Capital Inflation Adjustment
XV.
XVI. Other (*)
XVII. Net Profit / Loss for the Period
XVIII. Profit Distribution
18.1
Dividend Paid
18.2
Transfer to Reserves
18.3
Other (**)
Ending Balance (I+II+III...+XVI+XVII+XVIII)
Extraordinary
Reserves
4,500,000
Changes During the Period
IV.
Increase/Decrease Due to Mergers
Marketable Securities Value Increase Fund
V.
Hedge Reserves (Effective Portion)
VI.
6.1
Cash Flow Hedges
6.2
Revaluation Surplus on Tangible Assets
VII.
VIII. Revaluation Surplus on Intangible Assets
Bonus Shares from Associates, Subsidiaries and Jointly
IX.
Controlled Entities(Joint Ventures)
Translation Differences
X.
The Effect of Disposal of Assets
XI.
The Effect of Reclassification of Assets
XII.
XIII. The Effect of Changes in the Equity of Subsidiaries on the
Equity of the Bank
XIV. Capital Increase
14.1
Cash
14.2
Internal Sources
Share Issue
XV.
XVI. Share Cancellation Profits
XVII. Paid-in-Capital Inflation Adjustment
XVIII. Other
XIX. Net Profit / Loss for the Period
Profit Distribution
XX.
20.1
Dividend Paid
20.2
Transfer to Reserves
20.3
Other
I.
Statutory
Reserves
223,647
4,695
2,486,493
(3,267,814)
(649,410)
(2,618,404)
223,647
4,695
2,390,062
96,431
2,510,133
64,234
13,299,237
113,132
2,511,627
64,234
13,300,346
39,375
751,708
(646,652)
370,061
2,702,910
3,439,122
-
(1,179)
-
-
(1,179)
(1,015,237)
22,232
905,030
4,500,000
1,615,938
33,941
-
263,005
6,967
2,492,265
263,005
6,967
2,361,642
130,623
2,774,632
71,201
15,792,611
(3,472,625)
(841,011)
(2,631,614)
61,607
905,030
(769,715)
2,423,885
-
(1,179)
-
-
(*) The amount also includes the changes in Group's shares.
(**) According to the Articles of Incorporation of the Bank, since a portion of the net profit for the period is distributed to the employees as a dividend, the provision provided for employee dividend distribution within the scope of “TAS 19-Employee Benefits”, has been added to distributable profit.
10
TÜRKİYE İŞ BANKASI A.Ş. CONSOLIDATED STATEMENT OF CASH FLOWS
Footnotes
A.
CASH FLOWS FROM BANKING OPERATIONS
1.1
Operating Profit Before Changes in Operating Assets and Liabilities
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7
1.1.8
1.1.9
Interest Received
Interest Paid
Dividend Received
Other Income
Collections from Previously Written Off Loans and Other Receivables
Cash Payments to Personnel and Service Suppliers
Taxes Paid
Other
1.2
Changes in Operating Assets and Liabilities
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
1.2.8
1.2.9
1.2.10
Net (Increase) Decrease in Financial Assets Held for Trading
Net(Increase) Decrease in Financial Assets at Fair Value through Profit or Loss
Net (Increase) Decrease in Due From Banks
Net (Increase) Decrease in Loans
Net (Increase) Decrease in Other Assets
Net Increase (Decrease) in Bank Deposits
Net Increase (Decrease) in Other Deposits
Net Increase (Decrease) in Funds Borrowed
Net Increase (Decrease) in Matured Payables
Net Increase (Decrease) in Other Liabilities
I.
Net Cash Provided From Banking Operations
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
THOUSAND TL
CURRENT PERIOD
PRIOR PERIOD
(01/01-31/03/2015)
(01/01-31/03/2014)
1,895,414
1,583,868
4,809,352
(2,452,007)
15,113
654,489
1,395,414
258,114
(1,114,528)
(500,080)
(1,170,453)
4,117,438
(2,036,974)
13,446
580,415
976,919
219,504
(1,021,835)
(197,307)
(1,067,738)
1,968,659
(2,526,649)
(18,915)
(2,582,802)
(6,414,504)
(869,187)
(141,872)
7,930,271
5,327,842
(1,262,174)
(80,110)
(1,318,845)
(1,538,124)
(1,173,180)
1,478,673
3,320,926
376,249
(3,592,238)
3,864,073
(942,781)
Net Cash Provided from / Used in Investing Activities
(2,878,876)
(315,167)
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
Cash Paid for Purchase of Associates, Subsidiaries and Jointly Controlled Entities (Joint Ventures)
Cash Obtained from Sale of Associates, Subsidiaries and Jointly Controlled Entities (Joint Ventures)
Tangible Asset Purchases
Tangible Asset Sales
Cash Paid for Purchase of Financial Assets Available for Sale
Cash Obtained from Sales of Financial Assets Available for Sale
Cash Paid for Purchase of Investment Securities Held to Maturity
Cash Obtained from Sales of Investment Securities Held to Maturity
Other
(250)
(164,941)
39,826
(5,716,685)
2,866,428
(45,452)
267,867
(125,669)
(15)
19,873
(101,856)
50,538
(3,367,046)
2,472,510
(12,562)
699,540
(76,149)
C.
CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net Cash Provided from / Used in Financing Activities
42,796
890,761
3.1
3.2
3.3
3.4
3.5
3.6
Cash Obtained from Funds Borrowed and Securities Issued
Cash Used for Repayment of Funds Borrowed and Securities Issued
Equity Instruments
Dividends Paid
Payments for Finance Leases
Other
4,454,565
(4,281,952)
(129,817)
-
3,209,789
(2,217,512)
(101,516)
-
IV.
Effect of Change in Foreign Exchange Rate on Cash and Cash Equivalents
296,901
(5,843)
V.
Net Increase / (Decrease) in Cash and Cash Equivalents
1,324,894
(373,030)
VI.
Cash and Cash Equivalents at Beginning of the Period
13,562,316
13,042,609
VII.
Cash and Cash Equivalents at End of the Period
14,887,210
12,669,579
11
SECTION THREE: EXPLANATIONS ON ACCOUNTING POLICIES
I.
1.
The consolidated financial statements, related notes and explanations in this report are prepared in accordance with the
Turkish Accounting Standards issued by the Public Oversight Accounting and Auditing Standards Authority (Turkish
Financial Reporting Standards-TFRS, Turkish Accounting Standards-TAS, TFRS and TMS interpretations) and
“Regulation on Accounting Applications for Banks and Safeguarding of Documents and other communiqués and
interpretations of Banking Regulation and Supervision Agency (“BRSA”) on accounting and financial reporting.
Accounting policies applied and valuation methods used in the preparation of the consolidated financial statements are
expressed in detail below.
2.
Additional paragraph for convenience translation to English
The differences between accounting principles, as described in the preceding paragraphs, and the accounting principles
generally accepted in countries, in which the accompanying consolidated financial statements are to be distributed, and
International Financial Reporting Standards (“IFRS”), may have significant influence on the accompanying consolidated
financial statements. Accordingly, the accompanying consolidated financial statements are not intended to present the
financial position and results of operations in accordance with the accounting principles generally accepted in such countries
and IFRS.
II.
Strategy for Use of Financial Instruments and on Foreign Currency Transactions
1.
The Group’s Strategy on Financial Instruments
The Group’s main financial activities comprise a wide range of activities such as banking, insurance and reinsurance
services, brokerage services, investment consulting, real estate portfolio and asset management, financial lease, factoring
services, portfolio and asset management. The liabilities on the Group’s balance sheet are mainly composed of relatively
short-term deposits, parallel to general liability structure of the banking system, which is its main field of other activity. As
for the non-deposit liabilities, funds are collected through medium and short-term instruments. The liquidity risk that may
arise from this liability structure can be easily controlled through deposit continuity, as well as widespread network of the
correspondent banks, market maker status (The Parent Bank is one of the market maker banks) and by the use of liquidity
facilities of the Central Bank of the Republic of Turkey (CBRT). The liquidity of the Group and the banking system can be
easily monitored. On the other hand, foreign currency liquidity requirements are met by the money market operations and
currency swaps.
Most of the funds collected bear fixed-interest, and by monitoring the developments in the sector fixed and floating rate
placements are made according to the yields of alternative investment instruments.
The fixed rate Eurobond issued and a portion of fixed rate funds borrowed are subject to fair value hedge accounting. The
Group enter into interest rate swap agreements in order to hedge the change in fair values of its fixed rate financial liabilities.
The changes in the fair value of the hedged fixed rate financial liabilities and hedging interest rate swaps are recognised
under the statement of profit/loss. At the beginning and later period of the hedging transaction, the aforementioned hedging
transactions are expected to offset changes occurred in the relevant period of the hedging transaction and hedged risk
(attributable to hedging risk) and effectiveness tests are performed in this regard.
The hedge accounting is discontinued when the hedging instrument expires, is exercised, sold or no longer effective. When
discontinuing fair value hedge accounting, the cumulative fair value changes in carrying value of the hedged item arising
from the hedged risk are amortised and recognized in income statement over the life of the hedged item from that date of
the hedge accounting is discontinued.
By taking into account the global and national economic outlook, market conditions, current and potential credit customers’
expectations and tendencies, and risks such as; interest rate, liquidity and currency risks, the Group’s placements are focused
on high yielding and low risk assets and safety principle has always been the top priority. Generally a pricing policy aiming
at high return is implemented in the long-term placements of the Group, and attention is paid to the maximum use of noninterest income generation opportunities. In management of Financial Statements, this strategy is parallel to and acts within
legal limits.
The primary objectives related to balance sheet components are set by the long-term plans shaped along with budgeting;
and the Parent Bank takes the required positions against the short-term currency, interest rates and price fluctuations in
accordance with these plans and the course of the market conditions.
Foreign currency, interest rate and price fluctuations in the markets are monitored instantaneously. While taking positions,
in addition to the legal limits, the Parent Bank’s own transaction and control limits are also effectively monitored in order
to avoid limit overrides.
12
The Parent Bank’s asset-liability management is executed by the Asset-Liability Management Committee, within the risk
limits determined by the Board of Directors, in order to keep the liquidity risk, interest rate risk, currency risk and credit
risk within certain limits depending on the equity adequacy and to maximize profitability.
2.
Foreign Currency Transactions
The financial statements of the Parent Bank’s branches and financial institutions that have been established abroad are
prepared in functional currency prevailing in the economic environment that they operate in; and when they are
consolidated, they are presented in TL, which are the functional currency of the Parent Bank and also the currency used in
presentation of the financial statements.
Foreign currency monetary assets and liabilities on the balance sheet are converted into Turkish Lira by using the prevailing
exchange rates at the balance sheet date. Non-monetary items in foreign currencies carried at fair value are converted into
Turkish Lira by the rates at the date of which the fair value is determined. Exchange rate differences arising from the
conversions of monetary foreign currency items and the collections of and payments in foreign currency transactions are
reflected to the income statement. In accordance with TAS 21 “Effects of Changes In Foreign Exchange Rates”, net
investments in non-domestic companies are considered as non-monetary items, measured on the basis of historical cost and
converted into Turkish Currency at the currency rates at the transaction date, and also in accordance with TAS 29 “Financial
Reporting In Hyperinflationary Economics”, the inflation adjusted value is calculated by using the inflation indices
prevailing between the date of transaction and final date that the inflation adjustment is applied, 31 December 2004, and it
is accounted by allocating provision amounts for any permanent impairment losses.
While the Parent Bank and Türkiye Sınai Kalkınma Bankası A.Ş., one of the consolidated subsidiaries, use their own foreign
currency exchange rates for their foreign currency transactions, other institutions residing domestically use the CBRT rates
for their foreign currency transactions.
Assets and liabilities of the foreign branches of the Parent Bank and financial institutions that have been established abroad
are converted into TL by using the prevailing exchange rates at the balance sheet date. Income and expenses are converted
by at exchange rates at the dates of the transactions. Incomes and expenses of foreign financial institutions are converted
into TL at average foreign currency rates as long as there is not a significant fluctuation in currency rates during the period.
The exchange rate differences arising from the conversion are recognized in the “Other Profit Reserves” account under the
shareholders’ equity.
III.
Information on the Consolidated Companies
1.
Basis of Consolidation:
The consolidated financial statements have been prepared in accordance with the procedures listed in the “Communiqué
Related to Regulation on the Preparation of the Consolidated Financial Statements of Banks” published in the Official
Gazette numbered 26340 dated 8 November 2006.
a.
Basis of consolidation of subsidiaries:
A subsidiary is an entity that is controlled by the Parent.
Control is the power of the Parent Bank to appoint or remove from office the decision-taking majority of members of board
of directors through direct or indirect possession of the majority of a legal person’s capital irrespective of the requirement
of owning minimum fifty-one per cent of its capital; or by having control over the majority of the voting right as a
consequence of holding privileged shares or of agreements with other shareholders although not owning the majority of
capital.
As per the “Communiqué Related to the Preparation of Consolidated Financial Statements of Banks” published in the
Official Gazette numbered 26340 dated 8 November 2006, as at the current period, the Parent Bank has no subsidiaries,
qualified as credit institutions or financial institutions, excluded from consolidation. Detailed information about the
consolidated subsidiaries is given in Section Five, Note I.h.3.
Under full consolidation method, the assets, liabilities, income and expenses and off-balance sheet items of subsidiaries are
combined with the equivalent items of the Parent Bank on a line-by-line basis. The book value of the Parent Bank's
investment in each of the subsidiaries and the Group’s portion of equity of each subsidiary are eliminated. All significant
transactions and balances between the Parent Bank and its consolidated subsidiaries are eliminated reciprocally. Noncontrolling interests in the net income and in the equity of consolidated subsidiaries are calculated separately from the
Group’s net income and the Group’s shareholders' equity. Non-controlling interests are presented separately in the balance
sheet and in the income statement.
Accounting policies used by the subsidiaries, that are included in the consolidated financial statements, are not different
than the Parent Bank’s.
13
TFRS 3 “Business Combinations” standard prescribes no depreciation to be recognized for goodwill arising on the
acquisitions on or after 31 March 2004, realizing positive goodwill as an asset and application of impairment analysis as of
balance sheet dates. In the same standard, it is also required from that date onwards that the negative goodwill, which occurs
in the case of the Group’s interest in the fair value of acquired identifiable assets and liabilities exceeds the acquisition cost
to be recognized in profit or loss.
Details of positive goodwill arising from Bank’s investments to its subsidiaries in investment basis are as follows:
Name of the Investment
CJSC İşbank
Total
Amount of the Positive Consolidation Goodwill
611
4,792
1,767
28,804
35,974
Due to the Bank does not have any associates and subsidiaries, the special purpose entities established within the Bank’s
securitization loan transactions are included to the financial statements.
b.
Basis of consolidation of associates:
An associate is a domestic or foreign entity which the Parent Bank participates in its capital and over which it has a
significant influence but no control.
Significant influence is the power to participate in the financial and operating policy of the investee. If the Parent Bank
holds qualified shares in the associate, it is presumed that the Parent Bank has significant influence unless otherwise
demonstrated. A substantial or majority ownership by another investor does not necessarily preclude the Parent Bank from
having significant influence.
Qualified share is the share that directly or indirectly constitutes ten or more than ten percent of an entity’s capital or voting
rights and irrespective of this requirement, possession of privileged shares giving right to appoint members of board of
directors.
Equity accounting method is an evaluation method of associates by which the Parent Bank’s share in the associates’ equity
is compared with the book value of the associate accounted in the Parent Bank’s balance sheet. The difference is recognized
in profit or loss in the consolidated income statement.
Accounting policies of Arap Türk Bankası A.Ş., the only associate that is included in the consolidated financial statements
by using the equity accounting method are not different than the Parent Bank’s. Detailed information about Arap Türk
Bankası A.Ş. is given in Section Five Note I.g.2
c.
Basis of consolidation of joint ventures:
The Parent Bank does not have any joint ventures to be consolidated.
d.
Principles applied during share transfer, merger and acquisition: None.
2.
Presentation of unconsolidated subsidiaries, associates and equity securities included in the available-forsale portfolio in consolidated financial statements:
Equity securities recognized as subsidiaries, associates and financial assets available for sale are accounted in accordance
with TAS 39 “Turkish Accounting Standard for Financial Instruments: Recognition and Measurement” in the consolidated
financial statements. Subsidiaries, whose shares are traded in an active market (stock market), are shown in the financial
statements with their fair values by taking into account their prices recorded in the related market (stock market).
Subsidiaries and associates whose shares are not traded in an active market (stock market), are followed at their cost of
acquisition and these assets are shown in the financial statements with their cost values after the deduction of, impairment
losses, if any.
14
IV.
Forward and Option Contracts and Derivative Instruments
Derivative transactions of the Group consist of foreign currency and interest rate swaps, forwards, foreign currency options
and interest rate options. The Group has no derivative instruments decomposed from the main contract.
The derivative instruments including both economic hedges and derivatives specified as hedging items are classified as
either “derivatives held for trading” or “derivatives held for hedging” as per the Turkish Accounting Standard (“TAS 39”)
“Financial Instruments: Recognition and Measurement”.
Derivative instruments held for trading are carried at their fair values at the contract dates and the receivables and payables
arising from these transactions are followed under off-balance sheet accounts. Derivative transactions are valued at their
fair values in the reporting periods following their recording and the valuation differences are shown under the accounts,
“Derivative Financial Assets Held for Trading” and “Derivative Financial Liabilities Held for Trading”, depending on the
difference being positive or negative. Although some derivative transactions are qualified as economical hedging items,
they do not meet all the definition requirements of hedge accounting items. Therefore, under the Turkish Accounting
Standard No: 39 “Financial Instruments: Recognition and Measurement” (TAS 39), these derivative instruments are
recognized as held for trading. The valuation differences arising from the valuation of derivative transactions are associated
with the income statement.
Derivatives are designated as “derivative financial instruments held for hedging” if all necessary conditions are met to
evaluate those as financial instruments for hedge accounting. Those derivatives are recognized initially at fair value; and
subsequent to initial recognition, derivatives are measured at fair value, and notional amounts are recognized in off-balance
sheet. Changes in fair value are recognized in “derivative financial assets held for hedging” and “derivative financial
liabilities held for hedging” and therein recognized in profit or loss.
On off-balance sheet items table, options which generated assets for the Parent Bank are presented under “call options” line
and which generated liabilities are presented under “put options” line.
V.
Interest Income and Expenses
Interest income and expenses are recognized on an accrual basis using the effective interest method (the rate that equals the
future cash flows of a financial asset or liability to its present net book value) in conformity with TAS 39 “Financial
Instruments: Recognition and Measurement”.
In accordance with the related legislation, realized and unrealized interest accruals of the non-performing loans are reversed
and interest income related to these loans are recognized as an interest income only when they are collected.
VI.
Fees and Commission Income and Expenses
Fees and commission income and expenses are recognized either on accrual basis or by using the effective interest method.
Income earned in return for services rendered contractually or due to operations like sale or purchase of assets on behalf of
a third party real person or corporate body are recognized in income accounts in the period of collection.
VII.
Financial Assets
Financial assets are comprised of cash, contractual rights to obtain cash or another financial asset from or to exchange
financial instruments with the counterparty, or the capital instrument transactions of the counterparty. According to the
Parent Bank management’s purpose of holding, the financial assets are classified into four groups as “Financial Assets at
Fair Value through Profit And Loss”, “Financial Assets Available for Sale”, “Held to Maturity Investments” and “Loans
and Receivables”.
1.
Cash and Banks
Cash consists of cash in vault, foreign currency cash, and money in transit, cheques purchased and precious metals. Foreign
currency cash and banks are shown in the balance sheet by their amounts converted into TL at the foreign exchange rate on
the balance sheet date. The carrying values of both the cash and banks are their estimated fair values.
2.
a.
Financial Assets at Fair Value through Profit And Loss
a.1.
Financial assets held for trading are those acquired for the purpose of generating profit from short term market fluctuations
in prices or similar elements, or securities which are part of a portfolio set up to realize short term profit regardless of the
purpose of acquisition.
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Financial assets held for trading is presented in the balance sheet with their fair values are subject to valuation at fair values
after the initial recognition. In cases where values that form the basis for the fair value do not exist in active market
conditions, it is accepted that the fair value is not reliably determined and “amortized cost”, calculated by the internal rate
of return method, is taken into account as the fair value.
Any gains or losses resulting from such valuation are recognized in the profit and loss accounts. As per the explanations of
the Uniform Code of Accounts (UCA), any positive difference between the historical cost and amortized cost of financial
assets are recognized under the “Interest Income” account, and in case the fair value of the asset is over the amortized cost,
the positive difference is recognized in the “Gains on Securities Trading” account. If the fair value is less than the amortized
cost, the negative difference is recognized under the “Losses on Securities Trading” account. Any profit or loss resulting
from the disposal of those assets before their maturity date is recognized within the framework of the same principles.
a.2.
Financial Assets at Fair Value through Profit and Loss
Financial assets at fair value through profit and loss represent the financial assets at fair value through profit and loss at the
initial recognition and those are not obtained for trading purposes. Recognition of fair value differences of those assets are
similar to the financial asset held for trading.
b.
Financial Assets Available for Sale and Held to Maturity Investments
b.1.
Financial assets available for sale represent non-derivative financial assets other than bank loans and receivables, held to
maturity investments and financial assets at fair value through profit and loss. Initial recognition and subsequent valuation
of financial assets available for sale are performed based on the fair value including transaction costs. The amount arising
from the difference between cost and amortized value is recognized through income statement by using the internal rate of
return. If a price does not occur in an active market, fair value cannot be reliably determined and “Amortized Value” is
determined as the fair value using the internal rate of return. Unrealized gains and losses arising from changes in fair value
of the financial assets available for sale are not recognized in the income statement, they are recognized in the “Marketable
Securities Revaluation Fund” until the disposal, sale, redemption or incurring loss of those assets. Fair value differences
accounted under equity arising from the application of fair value are reflected to the income statement when these assets
are sold or when the valuation difference is collected.
b.2.
Held to maturity investments are the investments, for which there is an intention of holding until maturity and the relevant
conditions for fulfillment of such intention, including the funding ability, and for which there are fixed or determinable
payments with fixed maturity; and which are recognized at fair value at initial recognition. Held to maturity investments
with the initial recognition at fair value including transaction costs are subject to valuation with their discounted cost value
by using the internal rate of return method less provision for any impairment, if any. Interest income from held to maturity
investments are recognized in the income statement as an interest income.
There are no financial assets that are classified by the Group as held to maturity investments; however, they cannot be
classified under this classification for two years for not satisfying the requirements of the related classification.
3.
Loans and receivables represent unquoted financial assets in an active market that provide money, goods or services to the
debtor with fixed or determinable payments.
Loans and receivables are initially recognized with their fair values including settlement costs and carried at their amortized
costs calculated using the internal rate of return at the subsequent recognition.
Retail and commercial loans that are followed under cash loans are accounted at original maturities, based on their contents.
Foreign currency indexed consumer and corporate loans are followed at TL accounts after converting into TL by using the
opening exchange rates. At the subsequent periods, increases and decreases in the loan capital are recognized under the
foreign currency income and expense accounts in the income statement depending on foreign currency rates being higher
or lower than opening date rates. Repayments are calculated using the exchange rates at the repayment dates and exchange
differences are recognized under the foreign currency income and expense accounts in the income statement.
VIII.
Impairment of Financial Assets
At each balance sheet date, the Group companies evaluate the carrying amount of its financial assets or a group of its
financial assets to determine whether there is an objective indication that those assets have suffered an impairment loss. If
such indication exists, the Group determines the related impairment amount.
A financial asset or a group of financial assets is subject to impairment loss only if there is an objective indication that the
occurrence of one or more than one event (“loss event”) subsequent to the initial recognition of that asset has an effect on
16
the reliable estimate of the expected future cash flows of the related financial asset and asset group. Irrespective of their
high probability of incurrence, future expected losses are not recognized.
Impairment losses attributable to the held to maturity investments are measured as the difference between the present values
of estimated future cash flows discounted using the original interest rate of financial asset and the book value of asset. The
related difference is recognized as a loss and it decreases the book value of the financial asset. At subsequent periods, if the
impairment loss amount decreases, impairment loss recognized is reversed.
When a decline occurs in the fair values of the “financial assets available for sale” of which value decreases and increases
are recognized in equity, the accumulated profit/loss that had been recognized directly in equity is transferred from equity
to period profit or loss. If, in a subsequent period, the fair value of the related asset increases, the impairment loss is reversed,
with the amount of the reversal recognized in profit or loss.
Loans are classified and followed in line with the provisions of the “Regulation on Procedures And Principles For
Determination of Qualifications of Loans And Other Receivables By Banks And Provisions To Be Set Aside”, published
on the Official Gazette numbered 26333 dated 1 November 2006. Within the scope of the relevant legislation the Parent
Bank was allocating specific provision for the non-performing loans and other receivables, the Parent Bank calculated to
allocate specific provisions in accordance with the minimum provision rates mentioned. Among the activities of the Group,
for the receivables from the financial leasing and factoring companies provisions are set aside in accordance with the
communiques “Financial Leasing, Factoring and Financing Companies and Financial Statements of the Regulation on
Accounting Policy” published on the Official Gazette numbered 28861 dated 24 December 2013 and “Communiqué on
Principles and Procedures for Financial Leasing, Factoring and Financing Companies’ Provisions To Be Set Aside” under
the special provision is made and published on the Official Gazette numbered 26558 dated 20 July 2007 and for receivables
acquired through the asset management activities in “Regulation on the Establishment and Operations of Asset Management
Companies” published on the Official Gazette numbered 26333 dated 1 November 2006 under the special provision are
made. Specific provisions are reflected in the income statement. Provisions released in the same year, "Provision Expense"
account are credited in the past years, the remaining part of the provisions in the "Other Operating Income" account
transferred to and recognized.
Other than specific allowances, the Parent Bank and the financial institutions affiliated to the Group also provide “general
allowances” for loan and other receivables classified in accordance with the abovementioned legal regulations and
communiqués.
IX.
Offsetting Financial Instruments
A financial asset and a financial liability shall be offset and the net amount shall be presented in the balance sheet only
when a party currently has a legally enforceable right to set off the recognized amounts or intends either to settle on a net
basis or to realize the asset and settle the liability simultaneously.
X.
Sale and Repurchase Agreements and Securities Lending Transactions
Marketable securities subject to repurchase agreements are classified under “Available for Sale Financial Assets” or “Held
to Maturity Investments” in the Parent Bank’s portfolio and they are valued according to the valuation principles of the
related portfolios.
Funds obtained from the repurchase agreements are recognized under “Funds from Repurchase Transactions” account in
liabilities. For the difference between the sale and repurchase prices determined by the repo agreements for the period;
expense accrual is calculated using the internal rate of return method.
Reverse repo transactions are recognized under the “Receivables from Reverse Repurchase Transactions” account. For the
difference between the purchase and resale prices determined by the reverse Repurchase agreements for the period; income
accrual is calculated using the internal rate of return method.
XI.
Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
Assets that meet the criteria to be classified as held for sale are measured at the lower of its carrying amount and fair value
less costs to sell and presented in the financial statements separately. In order to classify a tangible fixed asset as held for
sale, the asset (or the disposal group) should be available for an immediate sale in its present condition subject to the terms
of any regular sales of such assets (or such disposal groups) and the sale should be highly probable. For a highly probable
sale, the appropriate level of management must be committed to a plan to sell the asset (or the disposal group), and an active
programme to complete the plan should be initiated to locate a customer. Also, the asset (or the disposal group) should have
an active market sale value, which is a reasonable value in relation to its current fair value. Events or circumstances may
extend the completion of the sale more than one year. Such assets are still classified as held for sale if there is sufficient
evidence that the delay in the sale process is due to the events and circumstances occurred beyond the control of the entity
or the entity remains committed to its plan to sell the asset (or disposal group).
17
A discontinued operation is a component of a bank that either has been disposed of, or is classified as held for sale. Gains
or losses relating to discontinued operations are presented separately in the income statement. There are no discontinued
operation on Parent Bank and consolidated associates.
XII.
Goodwill and Other Intangible Assets
The Group’s intangible assets consist of consolidation goodwill and software programs.
Goodwill arising from the acquisition of a subsidiary represents the excess of cost of acquisition over the fair value of
Group’s share of the identifiable assets, liabilities, or contingent liabilities of the acquired subsidiary at the date of
acquisition of the control. Goodwill is recognized as an asset at cost and then carried at cost less accumulated impairment
losses. In impairment-loss test, goodwill is allocated between the Group’s every cash-generating unit that is expected to
benefit from the synergies of the business combination. To control whether there is an impairment loss in the cashgenerating units that goodwill is allocated, impairment- loss test is applied every year or more often if there is indications
of impairment loss. In the cases, recoverable amount of cash-generating unit is smaller than its book value; impairment loss
is firstly used in reduction of book value of the cash-generating unit, and then the other assets proportionally. Goodwill
which is allocated for the impairment losses could not be reversed. When a subsidiary is to be sold, related goodwill amount
is combined with the profit/loss relating to this disposal. Positive goodwill arising from the Group’s investments in its
subsidiaries is recognized in Intangible Assets. Explanations on consolidation goodwill are given in Section Three Note
III.1.a.
As for other intangible assets, the purchased items are presented with their acquisition costs less the accumulated
amortization and impairment provisions. In case there is an indication of impairment, the recoverable amount of the related
intangible asset is estimated within the framework of TAS 36 “Impairment of Assets” and impairment provision is set aside
in case the recoverable amount is below its acquisition cost.
Such assets are amortized by the straight-line method considering their estimated useful life. The amortization method and
period are periodically reviewed at the end of each year.
XIII.
Tangible Assets
Tangible assets purchased before 1 January 2005, are presented in the financial statements at their inflation adjusted
acquisition costs as at 31 December 2004, and the items purchased in the subsequent periods are presented at acquisition
costs less accumulated amortization and impairment provisions. In case there is an indication of impairment, the recoverable
amount of the related intangible asset is estimated within the framework of TAS 36 “Impairment of Assets” and impairment
provision is set aside in case the recoverable amount is below its acquisition cost.
Assets under construction for leasing or for administrative purposes or for other objectives, which are not presently
determined, are amortized when they are ready for use.
The acquisition costs of tangible assets are amortized by the straight-line method, according to their estimated useful lives.
The estimated useful life, residual amount and the method of amortization are reviewed every year for the possible effects
of the changes that occur in the estimates and if there is any change in the estimates, they are recognized prospectively.
Assets held under finance leases are depreciated over the expected useful life or lease term whichever is the shorter for the
specified period.
Leasehold improvements are amortized in equal amounts considering their useful life. However, in any case the useful life
cannot exceed the leasing term. When the lease period is not certain or longer than 5 years, the amortization period is
recognized as 5 years.
The difference between the sales proceeds arising from the disposal of tangible assets or the inactivation of a tangible asset
and the book value of the tangible asset are recognized in the income statement.
Regular maintenance and repair costs incurred for tangible assets are recognized as expense.
There are no restrictions such as pledges, mortgages on tangible assets.
The depreciation rates used in amortization of tangible assets and their estimated useful lives are as follows:
Buildings
Safe Boxes
Other Movables
Leased Assets
Estimated Economic Life (Year)
4-50
2-50
2-25
4-15
Depreciation Rate
2% - 25%
2% - 50%
4% - 50%
6.66% - 25%
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XIV.
Investment Property
Investment property is kind of property which is held by the Group to earn rent. These are listed in the attached consolidated
financial statements at acquisition costs less accumulated amortization and impairment provisions. The accounting policies
mentioned for tangible assets are also valid for investment property.
XV.
Leasing Transactions
Assets acquired under financial leases are carried at the lower of their fair values or amortized value of the lease payments.
Leasing payables are recognized as liabilities in the balance sheet while the interest payable portion of the payables is
recognized as a deferred amount of interest. Finance lease payments are separated as financial expense and principal amount
payment, which provides a decrease in finance lease liability, thus helps a fixed rate interest on the remaining principal
amount of the debt to be calculated. Within the context of the Group’s general borrowing policy, financial expenses are
recognized in the income statement. Assets held under financial leases are recognized under the property, plant and
equipment (movable properties) account and are depreciated by using the straight line method.
There is one company which exclusively does finance leases (İş Finansal Kiralama A.Ş.) and one bank (Türkiye Sınai
Kalkınma Bankası A.Ş.) which operates finance lease activities as per provisional article No 4 of the Banking Law No
5411. Finance lease activities are operated according to the “Law on Financial Leasing, Factoring and Financing” No 6361.
In cases when the Group is the “lessor”, finance lease receivables are recognized by their fair values on the first entry date
and in the reporting periods after the first entry date they are carried at amortized cost by using the effective interest rate
method. Interest income on finance lease is allocated to the accounting periods in order to reflect a fixed term interest from
the investments that are subject to leasing.
Operational lease transactions are recognized in line with the related agreement on an accrual basis.
XVI.
Insurance Technical Income and Expense
In insurance companies premium income is obtained subsequent to the share of reinsurers in policy income is diminished.
Claims are recognized in expense on accrual basis. Outstanding loss provisions are recognized for the claims reported but
not paid yet and for the claims that incurred but not reported. Reinsurers’ share of claims paid and outstanding loss are
offset in these provisions.
XVII.
Insurance Technical Reserves
Effective 1 January 2005, the Group’s insurance subsidiaries adopted TFRS 4, Insurance Contracts ("TFRS 4"). TFRS 4
represents the completion of phase I and is a transitional standard until the recognition and measurement of insurance
contracts has more fully addressed. TFRS 4 requires that all contracts issued by insurance companies be classified as either
insurance contracts or investment contracts. Contracts with significant insurance risk are considered insurance contracts.
Insurance risk is defined as risk, other than financial risk, transferred from the holder of a contract to the issuer. TFRS 4
permits a company to continue with its previously adopted accounting policies with regard to recognition and measurement
of insurance contracts. Only in case of presentation of more reliable figures a change in accounting policy shall be carried
out. Contracts issued by insurance companies without significant insurance risk are considered investment contracts.
Investment contracts are accounted for in accordance with TAS 39 “Turkish Accounting Standard for Financial
Instruments: Recognition and Measurement”.
Within the framework of the current insurance regulation, reserves accounted by insurance companies for unearned
premium claims, unexpired risk reserves, outstanding claims and life-mathematical reserves are presented in the
consolidated financial statements.
The reserve for unearned premiums consists of the gross overlapping portion of accrued premiums for insurance contracts
that are in effect to the subsequent period or periods of balance sheet date on a daily basis without a commission or any
other discount.
In case the expected loss premium ratio is over 95%, the unexpired risk reserves are recognized for the main branches
specified by the Undersecretariat of Treasury. For each main branch, the amount found by multiplying the ratio exceeding
95% by the net unearned premium provision, is added to the unearned premium provision of that main branch.
Reserve for outstanding claim is recognized for the accrued claims which are not paid in the current period or in the prior
periods or for the claims realized with the expected costs but not reported.
Mathematical reserve is recognized on actuarial bases in order to meet the requirements of policyholders and beneficiaries
for life, health and personal accident insurance contracts for a period longer than a year.
19
On the other hand, actuarial chain ladder method is used to estimate the reserve amount to be set aside in the current period
by looking at the data of the past materialized losses. If the reserve amount found as a result of this method exceeds the
amount of reserve for the amount of uncertain indemnity, additional reserve must be set aside for the difference.
Reinsurance companies recognize for the outstanding claims that is declared by the companies, accrued and determined on
account.
Insurance companies of the Group cede premium and risks in the normal course of business in order to limit the potential
for losses arising from risks accepted. Insurance premiums ceded to reinsurers on contracts that are deemed to transfer
significant insurance risk are recognized as an expense in a manner that is consistent with the recognition of insurance
premium revenue arising from the underlying risks being protected.
Costs which vary and are directly associated with the acquisition of insurance and reinsurance contracts including
brokerage, commissions, underwriting expenses and other acquisition costs are deferred and amortized over the period of
contract, consistent with the earning of premium.
XVIII. Provisions and Contingent Liabilities
As of the end of the reporting period, a past event is deemed to give rise to a present obligation if, taking account of all
available evidence, it is more likely than not that a present obligation exists, the entity recognizes a provision in the financial
statements. As of the end of the reporting period where it is more likely that no present obligation exists at the end of the
reporting period, the entity discloses a contingent liability, unless the possibility of an outflow of resources embodying
economic benefits is remote.
In the financial statements, a provision is made for an existing commitment resulted from past events if it is probable that
the commitment will be settled and a reliable estimate can be made of the amount of the obligation.
Provisions are calculated based on the best estimates of management on the expenses to incur as of the balance sheet date
to fulfill the liability by considering the risks and uncertainties related to the liability.
In case the provision is measured by using the estimated cash flows required to fulfill the existing liability, the book value
of the related liability is equal to the present value of the related cash flows.
If the amount is not reliably estimated and there is no probability of cash outflow from the Group to settle the liability, the
related liability is considered as “contingent” and disclosed in the notes to the financial statements.
XIX.
Contingent Assets
The contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow
of economic benefits to the Parent Bank and the Group. Since showing the contingent assets in the financial statements
may result in the accounting of an income, which will never be generated, the related assets are not included in the financial
statements. Nevertheless, the developments related to the contingent assets are constantly evaluated and if it has become
virtually certain that an inflow of economic benefits will arise, the asset and the related income are recognized in the
financial statements of the period in which the change occurs.
XX.
Liabilities Regarding Employee Benefits
1.
Severance Indemnities and Short-Term Employee Benefits
According to the related regulation and the collective bargaining agreements, the Parent Bank and consolidated Group
companies (excluding the subsidiaries residing outside Turkey) are obliged to pay termination benefits for employees who
retire, die, quit for their military service obligations, who have been dismissed as defined in the related regulation or (for
the female employees) who have voluntarily quit within one year after the date of their marriage. Within the scope of TAS
19 “Employee Benefits”, the Parent Bank allocates seniority pay provisions for employee benefits by estimating the present
value of the probable future liabilities. According to TAS 19, all actuarial gains and losses occurred are recognized under
equity. As the legislations of the countries in which the Parent Bank’s non-resident subsidiaries operate do not require
retirement pay provision, no provision liability has been recognized for the related companies. In addition, provision is also
allocated for the unused paid vacation.
20
2.
Retirement Benefit Obligations
İşbank Pension Fund (Türkiye İş Bankası A.Ş. Emekli Sandığı Vakfı), of which each employee of the Parent Bank is a
member, has been established according to the provisional Article 20 of the Social Security Act numbered 506. As per
provisional article numbered 23 of the Banking Law numbered 5411, it is ruled that Bank pension funds, which were
established within the framework of Social Security Institution Law, will be transferred to the Social Security Institution,
within 3 years after the publication of such law. Methods and principles related to transfer have been determined as per the
Cabinet decision dated 30 November 2006 numbered 2006/11345. However, the related article of the act has been cancelled
upon the President’s application dated 2 November 2005, by the Supreme Court’s decision dated 22 March 2007,
Nr.E.2005/39, K.2007/33, which was published on the Official Gazette dated 31 March 2007 and numbered 26479 and the
execution decision were ceased as of the issuance date of the related decision.
After the justified decree related to cancelling the provisional article 23 of the Banking Law was announced by the
Constitutional Court on the Official Gazette dated 15 December 2007 and numbered 26731, Turkish Grand National
Assembly started to work on establishing new legal regulations, and after it was approved at the General Assembly of the
TGNA, the Law numbered 5754 “Emendating Social Security and General Health Insurance Act and Certain Laws and
Decree Laws”, which was published on the Official Gazette dated 8 May 2008 and numbered 26870, came into effect. The
new law decrees that the contributors of the bank pension funds, the ones who receive salaries or income from these funds
and their rightful beneficiaries will be transferred to the Social Security Institution and will be subject to this Law within 3
years after the release date of the related article, without any need for further operation. The three-year transfer period can
be prolonged for maximum 2 years by the Cabinet decision.
However related transfer period has been prolonged for 2 years by the Cabinet decision dated. 14 March 2011, which was
published on the Official Gazette dated 9 April 2011 and numbered 27900. In addition, by the Law “Emendating Social
Security and General Health Insurance Act”, which was published on the Official Gazette dated 8 March 2012 and
numbered 28227, this period of 2 years has been raised to 4 years after that related transfer period has been prolonged for
one more year by the Cabinet decision dated 08 April 2013, which was published on the Official Gazette dated 3 May 2013
and numbered 28636 also this period has revalidated one more year by the Cabinet decision dated 24 February 2014, which
was published on the Official Gazette dated 30 April 2014 and numbered 28987. The Council of Ministers has been lastly
authorized to determine the transfer date in accordance with the last amendment in the first paragraph of the 20th provisional
article of Law No.5510 implemented by the Law No. 6645 on Amendment of the “Occupational Health and Safety Law
and Other Laws and Decree Laws” published in the Official Gazette dated 23 April 2015 and numbered 29335.
On the other hand, the application made on 19 June 2008 by the Republican People’s Party to the Constitutional Court for
the annulment and motion for stay of some articles, including the first paragraph of the provisional article 20 of the Law,
which covers provisions on transfers, was rejected in accordance with the decision taken at the meeting of the aforementioned court on 30 March 2011.
The above mentioned law also states that;
 Through a commission constituted by the attendance of one representative separately from the Social Security
Institution, Ministry of Finance, Turkish Treasury, State Planning Organization, Banking Regulation and
Supervision Agency, Savings Deposit Insurance Fund, one from each pension fund, and one representative from the
organization employing pension fund contributors, related to the transferred persons, the cash value of the liabilities
of the pension fund as of the transfer date will be calculated by considering their income and expenses in terms of
the lines of insurance within the context of the related Law, and technical interest rate of 9.8% will be used in the
actuarial calculation of the value in cash
 And that after the transfer of the pension fund contributors, the ones who receive salaries or income from these
funds and their rightful beneficiaries to the Social Security Institution, these persons’ uncovered social rights and
payments, despite being included in the trust indenture that they are subject to, will be continued to be covered by
the pension funds and the employers of pension fund contributors.
In line with the new law, the Bank had an actuarial valuation made which is actual and technical actuarial report dated 12
January 2015 in the amount specified in the corresponding place has given for the aforementioned pension fund as of 31
December 2014. The actuarial assumptions used in the related actuarial report are given in Section Five Note II-h. Besides
the Parent Bank, Milli Reasürans T.A.Ş. and Türkiye Sınai Kalkınma Bankası A.Ş. also had actuarial audits as of 31
December 2014 for their pension funds. According to actuarial report as at 9 January 2015, the amount of actuarial and
technical deficit which was measured according this report and reflected to the year-end financial statements, was kept in
the financial statements for the current period from Milli Reasürans T.A.Ş.. According to actuarial report as at 22 January
2015, there is not any additional operational or actuarial liability from Türkiye Sınai Kalkınma Bankası to the Group at 31
December 2014.
21
Up to now, there has not been any deficit in İşbank Members’ Supplementary Pension Fund, which has been founded by
the Bank as per the provisions of the Turkish Commercial Code and Turkish Civil Code and which provides subsequent
retirement benefits; and the Parent Bank has made no payment for this purpose. It is believed that the assets of this institution
are capable of covering its total obligations, and that it shall not constitute an additional liability for the Parent Bank. Those
are also valid for the supplementary pension funds of the employees of Anadolu Anonim Türk Sigorta Şirketi, Milli
Reasürans T.A.Ş. and Türkiye Sınai Kalkınma Bankası A.Ş, which are among the other financial institutions of the Group.
XXI.
Taxation
1.
Corporate Tax:
Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax return. Therefore,
provisions for taxes, as reflected in the accompanying consolidated financial statements, have been calculated on a separateentity basis.
In accordance with the Article 32 of the Corporate Tax Law No: 5520, the corporate tax rate is calculated at the rate of
20%. As per the related law, temporary tax is calculated and paid quarterly in line with the principles of the Income Tax
Law and at the corporate tax rate. The temporary tax payments are deducted from the current period’s corporate tax. The
temporary provisional tax for the first three month period of 2015 will be paid in May 2015 and will be offset with the
current period’s corporate tax.
Tax expense is the sum of the current tax expense and deferred tax charge. Current period tax liability is calculated over
taxable profit. Taxable profit is different from the profit in the income statement since taxable income or deductible
expenses for the following years and non-taxable and non-deductible items are excluded. Current taxes are shown in the
financial tables by offsetting with prepaid taxes.
Within the framework of the Corporate Tax Law numbered 5520, 75% of the gains on the sale of the participation shares,
which were held in the assets for a minimum of 2 whole years and 75% of the gains on the sale of immovable are exempt
from tax provided that they are added to the capital as set forth by the Law or that they are kept in a special fund under
liabilities for a period of 5 years.
2.
Deferred Tax:
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized
for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable
profits will be available against which deductible temporary differences can be utilized. General provisions that are
allocated for possible future risks are included in the tax base and they are not subject to deferred tax calculation. No tax
assets or liabilities are recognized for the temporary timing difference that affects neither the taxable profit nor the
accounting profit and that arises from the initial recognition in the balance sheet, of assets and liabilities, other than the
goodwill and mergers.
The carrying values of deferred tax assets are reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is measured at enacted tax rates prevailing in the period when the assets are realized or liabilities are settled,
and the tax is recognized as income or expense in the income statement. Nonetheless, if the deferred tax is related to assets
directly associated with the equity in the same or different period, it is directly recognized in the equity accounts.
Deferred tax assets and liabilities in the financial statements of banks and companies are shown by way of offsetting. In the
consolidated financial statements, on the other hand, the deferred tax assets and liabilities that come from the companies as
offset are separately shown in the assets and liabilities.
3.
Tax Practices in the Countries that Foreign Branches Operate:
Turkish Republic of Northern Cyprus (TRNC)
According to the tax regulations in the Turkish Republic of Northern Cyprus, corporate gains are separately subject to 10%
corporate tax and 15% income tax. The tax bases for companies are determined by adding the expenses that cannot be
deducted according to TRNC regulations, to commercial gains and by subtracting exemptions and deductions from
commercial gains. Income tax is paid in June, and corporate tax payment is made in two installments, in May and in October.
On the other hand, withholding tax is paid in TRNC over interest income and similar gains of the companies. The relevant
withholding tax payments are deducted from the corporate tax-payable. In the case the amount of the withholding tax
collections is are higher than the corporate tax payable, the difference is deducted from income tax payable.
22
England
Corporate earnings are subject to 21% corporate tax in England. The relevant rate is applied to the tax base that is determined
by adding the expenses that cannot be deducted due to the regulations, to commercial gains and by subtracting exemptions
and deductions from commercial gains. On the other hand, if the a specific balance within the scope of the regulations’ tax
base of the relevant year, is higher than the amount found the corporate tax payments are made as temporary tax payments
in four installments in July and October of the relevant year and in January and April of the following year. Relevant
temporary tax payments are deducted from the corporate tax that is finalized until the end of January of the second year
following the relevant year. On the other hand, if the tax base is under the determined balance, corporate tax is paid by the
end of September following the year that the profit is made.
Bahrain
Banks in Bahrain are not subject to tax according to the regulations of the country.
The Republic of Iraq (Iraq)
Corporate earnings are subject to 15% income tax in Iraq. Income tax is accrued at the end of the year and paid in the
following year to the related tax administration by the end of June, at the latest. The corporate tax rate is 15% and the
balance sheet must be presented to the tax office until the end of June of the following year and accrued taxes must be paid.
On the other hand, Tax Administrations Regional Government in Northern Iraq can recognize the fixed tax except signified
rates.
Georgia
Corporate earnings are subject to income tax rate of 15% according to the Georgian legislation. This ratio is applied to the
tax base that will be calculated as a result of the implementation of exemptions, deductions, addition of disallowable
expenses, to the income of corporations and that are calculated in accordance with the tax laws. In addition, in accordance
with the legislation of Georgia, each year during May, July, September and December the amount of tax, that calculated
according to the previous year income tax, is paid to the tax office by four equal installments of the probable income that
is likely to be obtained the current year. If those prepaid taxes are lower than the final corporate tax, the difference is paid
until the beginning of April of the following year, if it is higher, then the difference is returned to the institution by the tax
authorities.
Kosovo
Corporate earnings are subject to income tax rate of 10% according to the Kosovo legislation. This ratio is applied to the
tax base that will be calculated as a result of the implementation of exemptions, deductions, addition of disallowable
expenses, to the corporate income and that are calculated in accordance with the tax laws. Tax has to be paid in advance
until April, July, October and January of the current year and the 15 th day of January of the following year by four
installments. If those prepaid taxes are lower than the final corporate tax, the difference is paid until the beginning of April
of the following year, if it is higher, then the difference is returned to the institution by the tax authorities.
Germany
According to the tax regulations in Germany, corporate gains are subject to 15% corporate tax. In addition to this, a
solidarity tax of 5.5% is calculated over this corporate tax. The tax bases for corporate are determined by adding the
expenses that cannot be deducted according to Germany regulations, to interest, commissions and other operating gains and
by subtracting exemptions and deductions from these. The corporate tax payments are made as temporary tax payments in
four installments and are deducted from the corporate tax that is finalized at the end of the current year.
Russia
According to the Russian regulations, corporate gains are subject to 20% corporate tax. The corporate tax base is determined
on accrual basis and it is measured by adding the non-deductible expenses to the corporate income gained during the period.
Companies in Russia make quarterly tax returns and make provisional tax payment by offsetting the advance taxes paid
during the period. Final taxation period for corporate tax is one year and the corporate tax is paid until 28 March by
considering the provisional taxes paid during the year.
United Arab Emirates
The companies operating in the free zones of Dubai are not subject to tax according to the country’s legislation.
23
4.
Transfer Pricing:
Transfer pricing is regulated through Article 13 of Corporate Tax Law titled “Transfer Pricing through Camouflage of
Earnings”. Detailed information for the practice regarding the subject is found in the “General Communiqué Regarding
Camouflage of Earnings through Transfer Pricing”.
According to the aforementioned regulations, in the case of making purchase or sales of goods or services with relevant
persons/corporations at a price that is determined against “arm’s length principle”, the gain is considered to be distributed
implicitly through transfer pricing and such distribution of gains is not subject to deductions in means of corporate tax.
XXII.
Borrowings
The Parent Bank and its consolidated Group companies whenever required, generates funds from individuals and
institutions residing domestically and abroad by approaching the borrowing instruments in the form of syndication,
securitization, collateralized borrowing and issue of bonds/bills. Such transactions are at first carried at acquisition cost,
and in the following periods they are valued at amortized cost measured by using the internal rate of return method.
In case that valuation differences in amortized cost borrowings with their associated financial instruments arise, to eliminate
or reduce this inconsistency those debt instruments are recognized in fair value as per TAS 39 "Financial Instruments:
Recognition and Measurement".
XXIII. Equity Shares and Issuance of Equity Shares
Share issuance related to costs is recognized as expenses.
Dividend income related with the equity shares are determined by the General Assembly of the Shareholders.
Weighted average number of shares outstanding is taken into account in the calculation of earnings per share. In case the
number of shares increases by way of bonus issues as a result of the capital increases made by using the internal sources,
the calculation of earnings per share is made by adjusting the weighted average number of shares, which were previously
calculated as at the comparable periods. The adjustment means that the number of shares used in calculation is taken into
consideration as if the bonus issue occurred at the beginning of the comparable period. In case such changes in the number
of shares occur after the balance sheet date, but before the ratification of the financial statements to be published, the
calculation of earnings per share are based on the number of new shares. The Parent Bank’s earnings per share calculations
taking place in the consolidated income statement are as follows.
Profit attributable to shareholders
Weighted average number of shares (thousands)
Earnings per share – (in exact TL)
Current Period
905,030
112,502,250
0.008044550
Prior Period
751,708
112,502,250
0.006681715
XXIV. Bank Acceptances and Bills of Guarantee
Bill guarantees and acceptances are realized simultaneously with the customer payments and they are presented as possible
liabilities and commitments in the off-balance sheet accounts.
XXV.
Government Incentives
None.
XXVI. Segment Reporting
Business segment is the part of an enterprise,
-
-
which conducts business operations where it can gain revenues and make expenditures (including the revenues
and expenses related to the transactions made with the other parts of the enterprise),
whose operating results are regularly monitored by the authorities with the power to make decisions related to the
operations of the enterprise in order to make decisions related to the funds to be allocated to the segment and to
evaluate the performance of the segment, and
which has its separate financial information.
Information on the Group’s business segmentation and related information is explained in Section Four Note X.
XXVII. Other Disclosures
None.
24
SECTION FOUR: INFORMATION ON THE FINANCIAL POSITION AND RISK MANAGEMENT OF THE
GROUP
I.
Explanations on Consolidated Capital Adequacy Ratio
The Group’s and the Parent Bank’s Common Equity Tier I capital ratios are 11.73% and 12.73%, Tier I capital ratios are
11.71% and 12.64%, capital adequacy standard ratios are 13.98% and 14.90% respectively. Consolidated and
unconsolidated capital adequacy ratios are calculated within the scope of the “Regulation on Measurement and Evaluation
of Capital Adequacy of Banks”, “Regulation on Credit Risk Mitigation Techniques” and “Regulation on Calculation of
Risk Weighted Amounts for Securitizations” published in the Official Gazette no. 28337 dated 28 June 2012, effectiveness
date is 1 July 2012, and the calculations are made according to the “Regulation on Equities of Banks” published in the
Official Gazette numbered 28756 dated 5 September 2013.
Capital adequacy ratios are calculated from obligated required capital of the credit risk, the market risk and the operational
risk. The amount subject to credit risk on balance sheet assets and non-cash loans, commitments and types of derivative
financial instruments, risk classes and ratings of risk weights are evaluated by taking into account the relevant legislation.
The amount subject to credit risk for non-cash loans and commitments are considered by using the conversion rates which
are defined in the 5th article of “Regulation on Measurement and Evaluation of Capital Adequacy of Banks” after deducting
specific provision amount which is calculated from the article of “Determining the Nature of Loans and Receivables and
Principles and Procedures on the Allocation of Loan and Receivable Provisions” published in the Official Gazette no.26333
dated 1 November 2006. The items, which are considered as deductions from capital amount, are not considered in the
calculation of capital requirement of credit risk.
Such financial assets, liabilities and off-balance sheet transactions are classified in two separate portfolio as "trading
accounts" and "banking accounts" in accordance with the legal regulations and the Parent Bank's internal risk policies.
Actively traded asset on balance sheet, derivative transactions held for trading, and trading accounts comprising foreign
currency positions are used in calculation of market risk according to the Standard Method by the Bank. Financial
instruments and non-financial assets which are excluded from trading book and classified as banking book are subject to
calculation of credit risk.
In the calculation of the Parent Bank’s operational risk, “Basic Indicator Method” is used.
Information related to the Parent Bank’s capital adequacy ratio:
0%
Value at Credit Risk
Risk Groups
Contingent and Non-Contingent Receivables
from Central Governments or Central Banks
from Regional Government or Domestic
Government
from Administrative Units and NonCommercial Enterprises
from Multilateral Development Banks
from International Organizations
from Banks and Intermediaries
Contingent and Non-Contingent Corporate
Receivables
Contingent and Non-Contingent Retail
Receivables
Secured by Residential Property
Non-Performing Receivables (1)
Receivables are identified as high risk by the
Board
Secured Marketable Securities
Securitization Positions
Short-term Receivables and Short-term
Corporate Receivables from Banks and
Intermediaries
Investments as Collective Investment
Institutions
Other Receivables
10%
20%
60,565,592
22
10,537
50%
75%
Risk Weights
Bank Only
100%
8,512,614
321,009
19,888
2,095
2,913
150%
200%
250%
527,403
144,204
1,239
625,289
3,196,340
4,945,970
228,213
3,403,551
560,335
2,291,518
118,472,495
172,941
28,523,598
16,144
135
2,078,865
24,173,578
596,182
21,717
4,051,481
11,330,039
111,578
471,281
2,684,378
51,437
12,023,287
124,575
In accordance with the ‘’Regulation on Measurement and Evaluation of Capital Adequacy of Banks”, credits and other receivables which are
monitoring in the non-performing loans and receivables and represents the net of value after the offsetting with the specific provisions for those.
(1)
25
1250%
Information related to consolidated capital adequacy ratio:
0%(1)
Value at Credit Risk
Risk Groups
Contingent and Non-Contingent
Receivables from Central Governments or
Central Banks
Receivables from Regional Government or
Domestic Government
Receivables from Administrative Units and
Non-Commercial Enterprises
Receivables from Multilateral Development
Banks
Receivables from International
Organizations
Receivables from Banks and Intermediaries
Contingent and Non-Contingent Corporate
Receivables
Contingent and Non-Contingent Retail
Receivables
Receivables Secured by Residential
Property
Non-Performing Receivables (2)
Receivables are identified as high risk by
the Board
Short-term Receivables and Short-term
Corporate Receivables from Banks and
Intermediaries
Investments as Collective Investment
Institutions
Other Receivables
(1)
(2)
10%
20%
50%
66,290,789
22
10,537
Risk Weights
Consolidated
100%
75%
9,409,218
321,009
19,888
2,095
2,913
150%
200%
250%
618,125
185,120
1,239
958,244
5,899,528
10,027,821
364,548
3,486,235
728,278
2,658,370
138,179,390
7,877,347
28,554,643
16,144
135
2,078,865
24,490,394
764,295
21,717
4,119,409
11,330,053
111,578
190,879
2,705,928
51,437
11,086,200
114,796
The amount includes blocked financial investments with risks on saving life policyholders and receivables from individual pension operations of
Anadolu Hayat Emeklilik A.Ş. which is one of the Group companies.
In accordance with the ‘‘Regulation on Measurement and Evaluation of Capital Adequacy of Banks”, credits and other receivables which are
monitoring in the non-performing loans and receivables and represents the net of value after the offsetting with the specific provisions for those .
Summary information about the Parent bank’s capital adequacy ratio and consolidated capital adequacy ratio:
Bank-Only
Current Period
Consolidated
Prior Period
Current Period
Prior Period
16,568,979
15,976,126
18,414,388
17,614,444
543,186
496,364
734,608
732,008
1,283,820
1,131,277
1,529,377
1,252,503
34,263,424
35,255,300
36,147,533
37,497,307
Equity/((CRCR+CRMR+CROR)*12.5*100)
14.90
16.02
13.98
15.31
Total Tier I Capital/((CRCR+CRMR+CROR)*12.5)*100
12.64
13.60
11.71
12.87
Common Equity Tier I Capital
/((CRCR+CRMR+CROR)*12.5)*100
12.73
13.70
11.73
12.91
Capital Requirement for Credit Risk (VaCR*0.08) (CRCR)
Capital Requirement for Market Risk (CRMR)
Capital Requirement for Operational Risk (CROR)
Equity
26
1250%
Information on Consolidated Shareholders’ Equity:
Current
Period
COMMON EQUITY TIER 1 CAPITAL
Paid-in Capital to be Entitled for Compensation after All Creditors
Share Premium
Share Cancellation Profits
Legal Reserves
Other Comprehensive Income according to TAS
Profit
Net Current Period Profit
Prior Period Profit
Provisions for Possible Losses
Bonus Shares from Associates, Subsidiaries and Joint-Ventures not Accounted in Current Period’s Profit Minority shares
Minority shares
Common Equity Tier 1 capital before regulatory adjustments
Common Equity Tier 1 capital: regulatory adjustments
Current and prior periods' losses not covered by reserves, and losses accounted under equity according to TAS (-)
Leasehold improvements on operational leases (-)
Goodwill and intangible assets and related deferred tax liabilities (-)
Net deferred tax assets / liabilities (-)
Shares Obtained against Article 56, Paragraph 4 of the Banking Law (-)
Investments in own common equity (-)
Total of Net Long Positions of the Investments in Equity Items of Consolidated Banks and Financial Institutions where
the Bank does not own 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital (-)
the Bank owns 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital (-)
Mortgage servicing rights (amount above 10% threshold) (-)
Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability) (-)
Amount Exceeding the 15% Threshold of Tier I Capital as per the Article 2, Clause 2 of the Regulation on Measurement
and Evaluation of Capital Adequacy of Banks (-)
The Portion of Net Long Position of the Investments in Equity Items of Consolidated Banks and Financial
Institutions where the Bank owns 10% or more of the Issued Share Capital not deducted from Tier I Capital (-)
Mortgage servicing rights (amount above 10% threshold) (-)
Excess Amount arising from Deferred Tax Assets from Temporary Differences (-)
Other items to be defined by the regulator (-)
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover
deductions (-)
Total regulatory adjustments to Common equity Tier 1
Common Equity Tier 1 capital
ADDITIONAL TIER 1 CAPITAL
Privileged stocks which are not included in common equity and share premiums
Directly issued qualifying Additional Tier 1 instruments (approved by the regulators) plus related stock surplus
(Issued or Obtained after 1.1.2014)
Directly issued qualifying Additional Tier 1 instruments (approved by the regulators) plus related stock surplus
(Issued or Obtained before 1.1.2014)
Additional shares in the capital of third parties
Additional Tier 1 capital before regulatory adjustments
Additional Tier 1 capital: regulatory adjustments
Direct and Indirect Investments of the Bank on its own Additional Core Capital (-)
The Total of Net Long Position of the Direct or Indirect Investments in Additional Tier I Capital of Consolidated Banks
and Financial Institutions where the Bank owns more than 10% of the Issued Share Capital (-)
Other items to be Defined by the regulator (-)
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions (-)
Total regulatory adjustments to Additional Tier 1 capital
Additional Tier 1 capital
Regulatory adjustments to Common Equity
Goodwill and Other Intangible Assets and Related Deferred Taxes not deducted from Tier I Capital as per the Temporary
Article 2, Clause 1 of the Regulation on Measurement and Evaluation of Capital Adequacy of Banks (-)
Net Deferred Tax Asset/Liability not deducted from Tier I Capital as per the Temporary Article 2, Clause 1 of the
Regulation on Measurement and Evaluation of Capital Adequacy of Banks (-)
Tier 1 capital
Prior
Period
6,115,938
33,941
6,115,938
33,941
17,563,971
2,799,724
905,030
905,030
14,916,902
3,798,358
3,351,828
3,351,828
1,000,000
(1,179)
2,212,892
30,630,317
1,000,000
(1,179)
2,627,216
31,843,004
9,474
126,861
185,002
9,474
128,598
76,078
254
321,591
30,308,726
214,150
31,628,854
240,474
240,474
211,067
211,067
240,474
211,067
277,504
304,311
30,271,696
31,535,610
27
TIER II CAPITAL
Directly issued qualifying Tier 2 instruments (that are approved by the regulatory) plus related stock surplus (Issued or
Obtained after 01.01.2014)
Directly issued qualifying Tier 2 instruments (that are approved by the regulatory) plus related stock surplus (Issued or
Obtained before 01,01,2014)
Pledged sources on behalf of the Bank for the use of committed share capital increase by shareholders
Generic Provisions
Additional shares in the capital of third parties
Tier 2 capital before regulatory adjustments
Tier 2 capital: regulatory adjustments
Direct and Indirect Investments of the Bank on its own Tier II Capital (-)
The Total of Net Long Position of the Direct or Indirect Investments in Additional Core Capital and Tier II Capital of
Consolidated Banks and Financial Institutions where the Bank Owns 10% or more of the Issued Share Capital Exceeding
the 10% Threshold of Tier I Capital (-)
Total regulatory adjustments to Tier 2 capital
Tier 2 capital
CAPITAL
Loans Granted against the Articles 50 and 51 of the Banking Law (-)
Net Book Values of Movables and Immovables Exceeding the Limit Defined in the Article 57, Clause 1 of the Banking
Law and the Assets Acquired against Overdue Receivables and Held for Sale but Retained more than Five Years (-)
Loans to Banks, Financial Institutions (domestic/foreign) or Qualified Shareholders in the form of Subordinated Debts or
Debt Instruments Purchased from Such Parties and Qualified as Subordinated Debts (-)
Deductions as per the Article 20, Clause 2 of the Regulation on Measurement and Evaluation of Capital Adequacy of
Banks (-)
The Portion of Total of Net Long Positions of the Investments in Equity Items of Consolidated Banks and Financial
Institutions where the Bank does not own 10% or less of the Issued Share Capital Exceeding the 10% Threshold of
above Tier I Capital not deducted from Tier I Capital, Additional Core Capital or Tier II Capital as per the Temporary
Article 2, Clause 1 of the Regulation (-)
Institutions where the Bank owns more than 10% of the Issued Share Capital Exceeding the 10% Threshold of above
Tier I Capital not deducted from Additional Core Capital or Tier II Capital as per the Temporary Article 2, Clause 1 of
the Regulation (-)
Institutions where the Bank owns more than 10% of the Issued Share Capital Exceeding the 10% Threshold of above
Tier I Capital not deducted from Additional Core Capital or Tier II Capital as per the Temporary Article 2, Clause 1 of
the Regulation (-)
EQUITY
Amounts below the thresholds for deduction
Remaining Total of Net Long Positions of the Investments in Own Fund Items of Consolidated Banks and Financial
Institutions where the Bank owns 10% or less of the Issued Share Capital
Remaining total of net long positions of the investments in Tier I capital of Consolidated banks and Financial Institutions
where the Bank owns more than 10% Or Less of the Tier I Capital
Remaining mortgage servicing rights
Net deferred tax assets arising from temporary differences
2,941,520
3,262,650
2,672,715
320,631
5,934,866
2,479,770
281,423
6,023,843
5,934,866
36,206,562
637
6,023,843
37,559,453
1,294
41,622
43,375
16,770
17,477
36,147,533
37,497,307
114,796
111,422
618,125
637,937
28
Information on the provisional application elements in the calculation of equity:
The Parent Bank
Amount
recognized in
regulatory
capital
Minority Interest in Tier I Capital
Shares of Third Parties in Additional Core Capital
Shares of Third Parties in Tier II Capital
Directly issued qualifying Additional Tier 1
instruments (approved by the regulators) plus related
stock surplus (Issued or Obtained before 01.01.2014)
2,915,640
Consolidated
Amount
recognized in
regulatory
capital
2,212,892
240,474
320,631
Total
3,598,000
2,941,520
Total
2,773,997
3,727,400
Details on Subordinated Liabilities:
Issuer
Unique identifier (e.g. CUSIP, ISIN or
Bloomberg identifier for private placement)
Governing law(s) of the instrument
Regulatory treatment
Transitional Basel III rules
Eligible at stand-alone / consolidated
Instrument type (types to be specified by
each jurisdiction)
Amount recognized in regulatory capital
(Currency in mil, as of most recent reporting
date)
Par value of instrument
Accounting classification
Original date of issuance
Perpetual or dated
Original maturity date
Issuer call subject to prior supervisory
approval
Optional call date, contingent call dates and
redemption amount
Subsequent call dates, if applicable
Coupons / dividends
Fixed or floating dividend/coupon
Coupon rate and any related index
Existence of a dividend stopper
Fully discretionary, partially discretionary or
mandatory
Existence of step up or other incentive to
redeem
Noncumulative or cumulative
Türkiye İş Bankası A.Ş.
US900151AB70 - XS0847042024
US900151AF84 - XS1003016018
With the exception of certain substances
will be subject to Turkish law is subject
to English law. The BRSA dated 1
November 2006 and published in
Official Gazette No. 26333 on the
Equity of the Bank were issued under
the Regulation.
With the exception of certain
substances will be subject to Turkish
law is subject to English law. The
BRSA dated 1 November 2006 and
published in Official Gazette No.
26333 on the Equity of the Bank were
issued under the Regulation.
Yes
Unconsolidated -Consolidated
Yes
Unconsolidated –Consolidated
Bond
2,083
Bond
833
2,570
Subordinated Liabilities
24.10.2012
Dated
10 years
1,028
Subordinated Liabilities
10.12.2013
Dated
10 years
Yes
The Bank ; (1) provided that subject to
having obtained the prior approval of
the BRSA and the date which may not
be earlier than fifth anniversary of the
Issue Date a) can purchase b) can
redeem all bonds if any taxes imposed
or levied (2) can redeem all bonds in
case of the deduction from equity.
None
Yes
The Bank ; (1) provided that subject to
having obtained the prior approval of
the BRSA and the date which may not
be earlier than fifth anniversary of the
Issue Date a) can purchase b) can
redeem all bonds if any taxes imposed
or levied (2) can redeem all bonds in
case of the deduction from equity.
None
Fixed
6%
None
Fixed
7.85%
None
None
None
None
Noncumulative
None
Noncumulative
29
Convertible or non-convertible
If convertible, conversion trigger (s)
If convertible, fully or partially
If convertible, conversion rate
If convertible, mandatory or optional conversion
If convertible, specify instrument type convertible into
If convertible, specify issuer of instrument it converts
into
Write-down feature
If write-down, write-down trigger(s)
If write-down, full or partial
If write-down, permanent or temporary
If temporary write-down, description of write-up
mechanism
Position in subordination hierarchy in liquidation
(specify instrument type immediately senior to
instrument)
In compliance with article number 7 and 8 of “Own
fund regulation”
None
None
None
None
Paid before shares and the
primary of subordinated debt and
after all the other debts.
Paid before shares and the primary
of subordinated debt and after all
the other debts.
None
None
Don't vest with the conditions
stated in clause of the Article 7
and the clause of 8.2. (ğ)
Don't vest with the conditions
stated in clause of the Article 7
and the clause of 8.2. (ğ)
Details of incompliances with article number 7 and 8
of “Own fund regulation”
Besides the Parent Bank, subordinated borrowing which TSKB used from International Finance Corporation (IFC) through
direct financing; has the approval of BRSA and it is within the scope of the “Regulation on Equities of Banks” per the
Article 8. Thus the borrowing amounting TL 129,400 (USD 50 Million) is considered as subordinated borrowing and 20%
of it is included in calculation of additional Tier 1 capital as of 31 March 2015.
II.
1.
Explanations on Consolidated Market Risk:
Explanations on Consolidated Market Risk:
The market risk carried by the Group is measured by two separate methods known respectively as the Standard Method
and the Value at Risk (VAR) Method in accordance with the local regulations adopted from internationally accepted
practices. In this context, currency risk emerges as the most important component of the market risk.
The consolidated market risk measurements are carried out on a quarterly basis, using the Standard Method. The results are
accounted in the legal reporting and evaluated with the top management.
The VAR Method is another alternative for the Standard Method in measuring and monitoring market risk carried by the
Parent Bank. This model is used to measure the market risk on a daily basis in terms of interest rate risk, currency risk and
equity share risk and is a part of the Parent Bank’s daily internal reporting. Further retrospective testing (back-testing) is
carried out on a daily basis to determine the reliability of the daily risk calculation by the VAR model, which is used to
estimate the maximum possible loss for the following day.
Scenario analyses which support the VAR method used to measure the losses that may occur in the ordinary market
conditions are practiced, and the possible impacts of scenarios that are developed based on the future predictions and the
past crises, on the value of the Parent Bank’s portfolio are determined and the results are reported to the Top Executive
Management. Financial participations also make VAR calculations within the frame determined by the Parent Bank, and
the results are reported to the Parent Bank’s top management.
The limits set for the market risk management within the framework of the Parent Bank’s asset liability management risk
policy, are monitored by the Risk Committee and reviewed in accordance with the market conditions.
The following table shows details of the consolidated market risk calculations carried out within the context of “Standard
Method for Market Risk Measurement” and in compliance with “Regulation on Measurement and Evaluation of Capital
Adequacy of Banks” as at 31 March 2015.
30
1.a.
Information on the market risk:
Amount
(I) Capital Requirement against General Market Risk – Standard Method
87,157
(II) Capital Requirement against Specific Risk – Standard Method
104,675
Capital Requirement for Specific Risk Related to Securitization Positions-Standard Method
(III) Capital Requirement against Currency Risk – Standard Method
423,433
(IV) Capital Requirement against Commodity Risk – Standard Method
30,282
(V) Capital Requirement against Exchange Risk – Standard Method
(VI) Capital Requirement against Market Risk of Options – Standard Method
4,880
(VII) Capital Requirement against Counterparty Credit Risk-Standard Method
84,181
(VIII) Capital Requirement against Market Risks of Banks Applying Risk Measurement Models
(IX) Total Capital Requirement against Market Risk (I+II+III+IV+V+VI+VII)
734,608
(X) Value at Market Risk (12.5 x VIII) or (12.5 x IX)
III.
9,182,600
Explanations on Consolidated Currency Risk
Foreign currency position risk for the Group is a result of the difference between the Group’s assets denominated in and
indexed to foreign currencies and liabilities denominated in foreign currencies. Furthermore, parity fluctuations of different
foreign currencies are another element of the currency risk.
The currency risk for the Parent Bank is managed by the internal currency risk limits which are established as a part of the
Parent Bank’s risk policies. The Assets and Liabilities Committee and the Assets and Liabilities Management Unit meet
regularly to take the necessary decisions for hedging exchange rate and parity risks, within framework of the determined
by the “Net Foreign Currency Overall Position/ Shareholders’ Equity” standard ratio, which is a part of the legal
requirement and the internal currency risk limits specified by the Board of Directors., Foreign exchange risk management
decisions are strictly applied.
In measuring currency risk, which the Group is exposed to, both the Standard Method and the Value at Risk Model (VAR)
are used as applied in the statutory reporting.
Measurements made for the Parent Bank within the scope of the Standard Method are carried out on a monthly basis and
form the basis of determining the capital requirement for hedging currency risk.
Risk measurements made within the context of the VAR are made on a daily basis using the historical and Monte Carlo
simulation methods. Furthermore, scenario analyses are conducted to support the calculations made within the VAR
context.
The results of the measurements made on currency risk are reported to the Key Management and the risks are closely
monitored by taking into account the market and the economic conditions.
The Parent Bank’s foreign currency purchase rates at the date of balance sheet and for the last five working days
of the period announced by the Parent Bank in TL are as follows:
Date
31.03.2015
30.03.2015
27.03.2015
26.03.2015
25.03.2015
24.03.2015
USD
2.5700
2.5798
2.5822
2.5685
2.5455
2.5376
EUR
2.7550
2.7929
2.8110
2.8051
2.7967
2.7673
The Parent Bank’s last 30-days arithmetical average foreign currency purchase rates:
USD: TL 2.5639 EUR: TL 2.7693
.
31
Information on currency risk:
EUR
Current Period
Assets
Cash (Cash in Vault, Foreign Currency Cash, Money
in Transit, Cheques Purchased) and Balances with the
Central Bank of Turkey
Banks
Financial Assets at Fair Value through Profit/Loss (1)
Money Market Placements
Loans (2)
Investments in Associates, Subsidiaries and Jointly
Controlled Entities (Joint Ventures)
Derivative Financial Assets Held for Risk
Management
Tangible Assets (1)
Intangible Assets (1)
Other Assets (1)
Total Assets
Liabilities
Bank Deposits
Foreign Currency Deposits (3)
Money Market Funds
Funds Provided from Other Financial Inst.
Marketable Securities Issued (4)
Miscellaneous Payables
Derivative Financial Liabilities Held for Risk
Management
Other Liabilities (1) (5)
Total Liabilities
Net On Balance Sheet Position
Net Off Balance Sheet Position
Derivative Financial Assets (6)
Derivative Financial Liabilities (6)
Non-Cash Loans
Prior Period
Total Assets
Total Liabilities
Net Balance Sheet Position
Net Off Balance Sheet Position
Derivative Financial Assets
Derivative Financial Liabilities
Non-Cash Loans
USD
Other FC
Total
4,416,400
14,884,494
4,072,355
23,373,249
3,294,848
145,606
15,598
724,004
22,273,232
2,237,731
621,759
411,725
8,483,423
53,505,117
29,221
2,226,041
5,944,304
767,365
15,598
9,236,648
78,004,390
30,670
15,702
6,632
53,004
13,101
13,101
42,293
103
33,321
75,717
1,269,723
32,212,374
1,985,780
81,747,210
135,106
6,914,401
3,390,609
120,873,985
1,445,074
24,974,120
199,258
10,995,960
110,205
385,385
2,624,988
36,854,721
2,963,769
23,962,620
17,371,359
636,601
488,051
5,034,001
12,208
10,274
51,599
4,558,113
66,862,842
3,163,027
34,970,788
17,491,838
1,073,585
638,625
38,748,627
2,058,699
86,472,757
189,722
5,785,855
2,887,046
131,007,239
(6,536,253)
2,792,857
10,107,082
7,314,225
8,132,072
(4,725,547)
5,159,943
20,312,783
15,152,840
20,691,929
1,128,546
(2,432,626)
1,781,124
4,213,750
1,138,736
(10,133,254)
5,520,174
32,200,989
26,680,815
29,962,737
28,600,841
36,468,332
(7,867,491)
4,202,312
10,257,641
6,055,329
8,234,492
70,847,173
71,322,797
(475,624)
1,328,346
14,226,081
12,897,735
17,167,633
6,713,849
6,207,885
505,964
(1,505,784)
1,027,032
2,532,816
933,707
106,161,863
113,999,014
(7,837,151)
4,024,874
25,510,754
21,485,880
26,335,832
In accordance with the principles of the “Regulation on the Calculation and Implementation of Foreign Currency Net General Position/Equity Standard Ratio by Banks on
Consolidated and Non-Consolidated Basis”, Derivative Financial Instruments Foreign Currency Income Accruals (TL 519,166), Operating Lease Development Costs (TL
8,949), Deferred Tax Asset (TL 8,445), Prepaid Expenses and Taxes (TL 53,596), Intangible Assets (TL 6,560) in assets and Derivative Financial Instruments Foreign
Currency Expense Accruals (TL 525,159), General Reserves (TL 33,520), and Shareholders’ Equity (TL 423,729) in liabilities are not taken into consideration in the currency
risk measurement.
(2)
Includes factoring receivables and foreign currency indexed loans, which are followed under TL account. Of the total amount of TL 6,327,464 of the aforementioned
loans; TL 3,817,187 is USD indexed, TL 2,474,119 is EUR indexed, TL 8,974 is CHF indexed, TL 5,724 is GBP indexed, TL 21,459 is JPY indexed and TL 1 is CAD
indexed. The balances include factoring receivables.
(3)
The item includes TL 2,049,142 precious metals deposit accounts.
(4)
Includes Tier 2 subordinated bonds which are classified on the balance sheet as subordinated loans, amounting to TL 3,689,161.
(5)
The borrower funds are presented in the “Other Liabilities” according to their type of currency.
(6)
The derivative transactions are taken into consideration within the context of the forward foreign currency trading definitions in the above mentioned Regulation.
(1)
32
IV.
Explanations on Consolidated Interest Rate Risk
“Interest Rate Risk” is defined as the decrease that can arise in the value of the interest sensitive assets, liabilities and offbalance sheet operations a result of interest rate fluctuations. The method of average maturity gap according to the repricing
dates is used for measuring the interest rate risk arising from the banking accounts, whereas the interest rate risk related to
interest sensitive financial instruments followed under trading accounts is assessed within the scope of market risk.
Potential effects of interest rate risk on the Parent Bank’s assets and liabilities, market developments, the general economic
environment and expectations are regularly followed in meetings of the Asset-Liability Committee, where further measures
to reduce risk are taken when necessary.
The Parent Bank’s on and off-balance sheet interest sensitive accounts other than the assets and liabilities exposed to market
risk are monitored and controlled by the limits above the average maturity gaps according to the repricing periods
determined by the Board within the scope of asset-liability management risk policy. Moreover, scenario analyses formed
in line with the historical data and expectations are also used in the management of the related risk.
a.
Interest rate sensitivity of assets, liabilities and off balance sheet items (Based on repricing dates):
Current Period
Up to
1 Month
1-3 Months 3-12 Months 1-5 Years
5 Years and Non-Interest
Over
Bearing
Total
Assets
Cash (Cash in Vault, Foreign
Currency Cash, Money in Transit,
Cheques Purchased) and Balances
with the Central Bank of Turkey
Banks
Financial Assets at Fair Value
through Profit/Loss
Loans (1)
Other Assets
Total Assets
Liabilities
Bank Deposits
Other Deposits
Money Market Funds
Marketable Securities Issued(2)
Funds Provided from Other
Financial
Institutions
Total Liabilities
Balance Sheet Long Position
Balance Sheet Short Position
Off Balance Sheet Long Position
Off Balance Sheet Short Position
Total Position
(1)
(2)
(3)
(4)
2,725,720
24,985,904
27,711,624
1,137,583
7,446,246
2,630,077
5,193,263
898,935
216,465
630,534
783,429
470,838
293,698
132,695
318,883
179,646
5,220,156
41,355,450
1,136,783
1,023,340
57,464,892
9,024
6,255,751
29,909,534
29,519
148,837
38,035,029
13,178,536
35,055,707
5,259
678,414
49,605,219
12,635,159
58,487,714
21,626
1,832,884
73,271,081
11,032,417
15,039,250
226,721
309,136
156,859
26,361,221
22,304,131
49,282,358
3,768,513
73,550,408
18,635,736
689,696
1,915,668
1,285,182
24,982,770
544,907
2,326
1,916,695
962,783
7,236,355
1,028,033
1,503
545,132
29,911,563
6,259,530
197,131
2,698,243
117,836
3,259
5,875,622
7,574,644
6,758,741
138,380,842
20,326,512
16,022,724
23,542,159
4,579,627
19,849,214
12,231,985
1,255,034
3,026,641
40,942,501
1,057,876
104,197,524
627,918
49,209,012
330,996
28,049,682
114,836
10,261,961
39,891
10,642,679
21,555,537
63,009,120
15,718,542
15,327,443
(46,732,632) (11,173,983)
131,754
3,325,856
(46,600,878)
(7,848,127)
45,874,804
91,658,942
(42,376,584)
(931,676) (2,533,505) (2,039,311)
20,623,861 60,475,615 13,679,231
(42,376,584)
188,670
48,548,740
180,156,791
1,193,187
26,144,465
294,019,800
48,046,321
294,019,800
100,283,199
(100,283,199)
3,457,610
(5,504,492)
(2,046,882)
The balance includes factoring receivables.
The amount of TL 3,689,161 of Tier 2 subordinated issued bonds having credit quality, which is classified on the balance sheet under the subordinated
loans, are also included.
Equity is included in “non-interest bearing” column.
The borrower funds are presented in “Up to 1 month” column in other liabilities.
33
Interest rate sensitivity of assets, liabilities and off balance sheet items (Based on repricing periods):
Prior Period
Assets
Banks
through Profit/Loss
Loans (1)
Investments Held to Maturity
Other Assets
Up to
1 Month
1-3 Months 3-12 Months
1-5 Years
5 Years and
Over
3,138,300
Noninterest
Bearing
Total
22,005,247
25,143,547
946,860
6,006,457
3,791,348
1,077,869
190,380
504,143
510,350
550,408
243,476
73,982
377,811
2,260,170
224,303
39,256
6,171,223
7,080,627
10,085,566
10,830,438
11,279,082
230,193
45,677,129
263,559
27,122,827
33,987,297
39,192,124
55,420,005
13,878,680
160,364
169,761,297
55,999
387,018
936,622
12,221
1,391,860
1,033,863
141,105
607,783
1,715,579
156,950
21,617,134
25,272,414
42,042,006
43,223,522
51,562,883
68,221,719
25,388,694
45,337,609
275,776,433
Bank Deposits
4,411,535
1,259,887
317,910
46,217
653,743
6,689,292
Other Deposits
67,163,727
23,472,033
6,330,969
1,400,754
29,443,105
127,811,934
Money Market Funds
20,983,454
540,520
668,740
112,055
Total Assets
Liabilities
Funds Provided from Other Financial
Institutions
Total Liabilities
Off Balance Sheet Long Position
599,507
743
1,966
3,231
2,727,070
4,266,212
5,598,632
7,518,391
21,865,876
6,575,972
15,896,936
8,670,806
758,472
2,273,886
34,176,072
416,096
332,952
1,118,386
83,027
2,583
46,579,946
48,532,990
101,905,862
44,230,141
21,374,989
8,002,388
9,796,206
90,466,847
275,776,433
30,187,894
60,219,331
15,592,488
(59,863,856)
(1,006,619)
1,012,885
2,931,693
Off Balance Sheet Short Position
Total Position
22,304,769
1,755,571
Balance Sheet Long Position
Balance Sheet Short Position
1,346
(58,850,971)
1,925,074
13,790,053
14,395,500
105,999,713
(45,129,238) (105,999,713)
3,944,578
(1,117,106)
(1,819,830)
29,070,788
58,399,501
(859,718)
14,732,770 (45,129,238)
(3,796,654)
147,924
(1)
The balance includes factoring receivables.
The amount of TL 3,268,784 of Tier 2 subordinated issued bonds having credit quality, which are classified on the balance sheet under the subordinated
loans, are also included.
(3)
Equity is included in “non-interest bearing” column.
(4)
(2)
34
b.
Average interest rates applied to monetary financial instruments:
Current Period
Assets
Cash (Cash in Vault, Foreign Currency Cash,
Money in Transit, Cheques Purchased) and
Balances with the
Banks
EUR
USD
JPY
TL
%
%
%
%
0,99
2.11
1.65
10.51
Financial Assets at Fair Value through Profit/Loss
1.49
4.71
7.51
0.06
4.54
4.73
Loans
4.41
4.57
2.30
0.66
9.58
Bank Deposits
0.96
0.94
10.41
Other Deposits
1.32
1.63
Money Market Funds
1.33
1.13
9.16
Debt Securities Issued (1)
1.06
4.66
9.16
Funds
0.50
0.50
6.00
Funds Provided from Other Financial Institutions
1.10
1.86
10.28
9.46
8.63
3.40
12.09
Liabilities
0.15
7.15
(1)
Includes subordinated bonds which are classified on the balance sheet as subordinated loans.
Prior Period
EUR
USD
JPY
TL
%
%
%
%
Assets
Cash (Cash in Vault, Foreign Currency Cash,
Money in Transit, Cheques Purchased) and
Balances with the Central Bank of Turkey
1.51
Banks
1.83
1.33
10.70
Financial Assets at Fair Value through Profit/Loss
1.93
4.66
8.12
0.02
4.64
4.74
Loans
4.80
4.57
2.13
0.70
10.31
Bank Deposits
0.68
1.19
10.14
Other Deposits
1.33
1.54
Money Market Funds
3.64
1.02
9.99
Debt Securities Issued(1)
1.94
4.61
9.49
Funds
0.50
0.50
6.00
Funds Provided from Other Financial Institutions
1.28
1.95
8.91
8.90
3.33
12.28
Liabilities
0.02
7.03
(1)
2.29
9.88
Includes subordinated bonds which are classified on the balance sheet as subordinated loans.
35
c.
The interest rate risk of the banking book items:
Interest rate risk arising from the banking accounts is defined as negative effect risk on capital of the changes in market
interest rates due to differences in interest settlement and re-pricing on, differences in interest-earning assets taking part in
the banking book; interest-bearing liabilities; interest-bearing derivative transactions inclusive of the policies established
by the Board of Directors, is managed within the framework of the strategies set by the Parent Bank Asset-Liability
Committee. Compliance with internal risk limits for banking portfolio is closely and continuously monitored by the Risk
Management Department and Asset-Liability Committee and the measurement results are reported to the Board of Directors
on a monthly basis.
Duration and sensitivity analysis are conducted on a monthly basis by the Bank in the scope of monitoring of interest rate
risk arising from the banking books about Interest Rate Risk in the Banking Accounts from the Regulation on Measurement
and Evaluation of Standard Shock Method which is published in the Official Gazette No. 28034 dated 23 August 2011. In
the duration analysis, the maturity gap between assets and liabilities of the balance sheet are determined by the calculation
of the weighted average maturities based on the asset that sensitive to interest rate and liabilities and off-balance sheet
transactions re-pricing period. In the interest rate risk sensitivity analysis, the influence of the various interest rate change
scenarios to the economic value of the Bank's capital is examined.
The interest rate risk of the banking book item in accordance with the legal regulations is measured and monitored on a
monthly basis within the scope of the Regulation about Measurement and Assessment of Interest Rate Risk in the Banking
Accounts by Standard Shock Method. In the calculations committed due to the mentioned regulations, behavioral maturity
modeling method is used for the deposits with low sensitivity to interest rate changes and demand deposits which is original
maturities is longer than contractual maturities. In the core deposit analysis, the historical data of demand deposit is used
and calculated the how much and which maturity would remain within the Bank and these analysis is used as an input to
not constitute a conflict of the legal provisions for quantifying the interest rate arising from banking book.
Currency
TL
TL
EUR
EUR
USD
USD
Total (for Negative Shocks)
Total (for Positive Shocks)
Applied Shock
(+/- x basis point)
(+) 500
(-) 400
(+) 200
(-) 200
(+) 200
(-) 200
Revenue/ Loss
(5,444,276)
5,324,440
(157,462)
180,988
16,879
77,802
5,583,230
(5,584,859)
Revenue/Shareholders’ Equity
– Loss/ Shareholders’ Equity
(15.89) %
15.54 %
(0.46) %
0.53 %
0.05 %
0.23 %
16.30 %
(16.30) %
V.
Explanations on Equity Shares Risk Arising from Banking Book
a.
Related to the equity investments account practices about the associates and subsidiaries can be seen in the Section
Three Note III.2.
b.
Balance Sheet Value of Equity Investment, fair value, and for publicly traded, if the market value is different from
the fair value comparison to the market price:
Share Certificate Investments
Quoted
Stock Investment Group A
Subsidiaries
Financial Subsidiaries
Non-Financial Subsidiaries
Non-Quoted
Associate and Subsidiaries
Financial Subsidiaries (1)
Subsidiaries
Financial Subsidiaries
(1)
Book Value
3,542,025
Comparison
Fair Value
Market Value
3,542,025
114,796
689,537
804,269
Accounted under equity accounted method.
36
c.
Unrealized gains and losses on investment in stocks, revaluation increases with the amounts of main and additive
capital:
Realized
Gains/losses
During the
period
Portfolio
Revaluation Increases
Including to
the Capital
Contribution
Total
Private Equity Investments
Shares Traded on a Stock
Exchange
Other Stocks
Total
VI.
Total
Unrealized Gains
Including
Including to the
in to the
Capital
main
Contribution
capital
2,020,491
2,020,491
2,020,491
2,020,491
Explanations on Consolidated Liquidity Risk
Liquidity risk may arise as a result of funding long-term assets with short-term resources. Utmost care is taken to maintain
the consistency between the maturities of assets and liabilities; strategies are used to acquire funds over longer terms.
The Parent Bank’s main source of funding is deposits. While the average maturity of deposits is shorter than the average
maturity of assets as a result of the market conditions, the Parent Bank’s wide network of branches and steady core deposit
base are its most important safeguards of the supply of funds. The Parent Bank also borrows medium and long-term funds
from institutions abroad.
In order to meet the liquidity requirements that may arise due to market fluctuations, the Group analyses TL and FC cash
flows projections to preserve liquid assets. The term structure of TL and FC deposits, their costs and movements in the total
amounts are monitored on a daily basis, also accounting for developments in former periods and expectations for the future.
Based on cash flow projections, prices are differentiated for different maturities and thereby measures are taken to meet
liquidity requirements; moreover liquidity that may be required for extraordinary circumstances is estimated and alternative
liquidity sources are determined for possible utilization.
Furthermore, foreign currency and total liquidity adequacy ratios, which are subject to weekly legal reporting, and the
liquidity coverage ratios that are calculated based on the stress scenarios built internally by the Bank, are used effectively
to manage the liquidity risk.
Evaluated within the framework of the Parent Bank’s asset-liability management risk policy, the limits determined related
to the liquidity risk management are monitored by the Risk Committee and to avoid extraordinary situations where a quick
action should be taken due to the unfavorable market conditions, emergency measures and funding plans related to liquidity
risk are put into effect.
The liquidity ratios that has been measured as per the Communiqué on “Measurement and Assessment of the Adequacy of
Banks’ which had been effective since 2006 is repealed as of 2015 for the deposit banks including the Bank. From the
beginning of 2015, liquidity coverage ratios are calculated as per the Communique on “Liquidity Coverage Ratio
Calculation”, published in compliance with Basel III legislation. Within the framework of resolution of BRSA dated 26
December 2014 and numbered 6143, total liquidity coverage ratios should be at least 60% and liquidity coverage ratios for
foreign currency should be at least 40% between 5 January 2015 and 31 December 2015. Abovementioned ratios will be
applied by an increase of 10% in each year starting from 1 January 2016 until 1 January 2019. Average foreign currency
and total liquidity coverage ratios that are calculated in a daily basis for the first three months of 2015 are given below.
Liquidity Coverage Ratios (Monthly)
Current Period
Average (%)
FC
146.67
FC + TL
106.07
37
Presentation of assets and liabilities according to their remaining maturities:
Demand
Up to 1
Month
1-3
Months
3-12
Months
1-5
Years
5 Years Unallocated
(1)
and Over
Total
Current Period
Assets
8,286,825
19,424,799
Banks
1,309,773
5,004,062
915,946
216,465
317,681
416,450
687,284
512,508
179,646
9,024
336,921
82,329
672,497
2,199,379 20,540,016 24,717,598
48,548,740
17,278,626
15,548,870
13,999,184
43,015,309 70,841,496 18,709,011
764,295 180,156,791
964,187
19,516
through Profit/Loss
Loans (2)
Other Assets
Total Assets
27,711,624
517,386
2,026,499
298,473
28,047,212
43,646,842
16,601,924
7,446,246
561,884
134,270
2,630,077
188,670
5,259
197,013
7,212
1,479,179
2,029,389
158,815
47,428,099 94,169,798 43,726,906
1,193,187
19,634,724
26,144,465
20,399,019 294,019,800
Liabilities
Bank Deposits
545,132
3,768,513
1,285,182
962,783
197,131
Other Deposits
29,917,586
73,544,203
24,982,326
7,234,452
2,700,772
1,503
138,380,842
3,029,439
5,643,023
11,510,863 12,315,857
8,443,319
40,942,501
18,600,836
86,035
475,423
1,164,218
1,915,668
1,916,695
6,259,530
5,875,622
7,202,109
211,299
149,987
68,071
572,451
525,026
Funds Provided from Other
Financial Institutions
Money Market Funds
Marketable Securities Issued
Other Liabilities
Total Liabilities
Liquidity Gap
(4)
(3)
8,391,258
1,273,568
2,971,616
1,009,617
40,127,544
111,032,384
35,134,177
(12,080,332)
(67,385,542) (18,532,253)
6,758,741
20,326,512
7,574,644
23,542,159
16,022,724
39,891
27,165,489 22,846,697 16,059,357
41,654,152
48,046,321
41,654,152 294,019,800
20,262,610 71,323,101 27,667,549 (21,255,133)
Prior Period
Total Assets
13,397,536
38,842,565
17,544,668
55,388,781 87,732,151 41,958,190
20,912,542 275,776,433
Total Liabilities
38,570,413
104,226,483
30,743,629
24,327,536 18,450,070 14,873,663
44,584,639 275,776,433
Liquidity Gap
(1)
(2)
(3)
(4)
(25,172,877)
(65,383,918) (13,198,961)
31,061,245 69,282,081 27,084,527 (23,672,097)
Assets, such as Tangible Assets, Subsidiaries and Associates, Office Supply Inventory, Prepaid Expenses and Non-Performing Loans, which are required for banking
operations and which cannot be converted into cash in short-term, other liabilities such as Provisions which are not considered as payables and Shareholders’ Equity,
are shown in ‘Unallocated” column.
The balances include factoring receivables.
The amount of TL 3,689,161 of Includes Tier 2 subordinated bonds which are classified on the balance sheet as subordinated loans.
VII.
None.
VIII.
Explanations on Securitization Positions
Explanations on Credit Risk Mitigation Techniques
In the calculation of the Group’s Credit Risk Mitigation in accordance with the “Communiqué on Credit Risk Mitigation
Techniques” published in the Official Gazette numbered 29111 on 6 September 2014, the financial collaterals are taken
into consideration. The Group takes local currency and foreign currency deposit pledges into consideration as financial
collaterals in calculating regulatory capital adequacy.
38
Collaterals on the Basis of Risk Classes:
Amount (1)
Risk Groups
Contingent and Non-Contingent Receivables from
Central Governments or Central Banks
Regional Government or Domestic Government
Administrative Units and Non-Commercial Enterprises
Multilateral Development Banks
International Organizations
Contingent and Non-Contingent Receivables from Banks
and Intermediaries
Contingent and Non-Contingent Corporate Receivables
Contingent and Non-Contingent Retail Receivables
Contingent and Non-Contingent Receivables Secured by
Residential Property
Non-Performing Receivables
Receivables are identified as high risk by the Board
Short-term Receivables and Short-term Corporate
Receivables from Banks and Intermediaries
Investments as Collective Investment Institutions
Other Receivables
(1)
Financial
Collateral
Other/Physical
Collateral
Guaranties and
Credit Derivatives
76,639,141
32,542
44
188,033
4,800
1,239
17,250,276
4,251
145,052,273
38,510,855
3,649,758
221,974
24,506,538
16,144
764,295
15,582,757
21,717
190,879
13,958,361
Includes total risk amounts before the effect of credit risk mitigation but after credit conversions.
IX.
Explanations on Risk Management Objectives and Policies
In addition to banking activities, activities of the entire the group as a whole is exposed to financial and non-financial risks
which are required to be analyzed, monitored and reported within specific risk management principles of the Bank and with
the perspective of Group risk management. The risk management process is organized within the framework of risk
management and serves the creation of a common risk culture in corporate level; which brings “good corporate governance”
to forefront, business units that undertaken risks and the independence between the internal audit and surveillance units are
established, risk is defined in accordance with international regulations and in this context measurement, analysis,
monitoring, reporting and control functions are carried.
Risk management process and the functions involved in the process is one of the primary responsibilities of the Board of
Directors. The Risk Management Department, which operates under the Board of Directors has been organized as AssetLiability Management Risk Unit, Credit Risk and Economic Capital Unit, Operational Risk and Model Verification and
Subsidiary Risk Unit.
The Bank’s risk management process is carried out within the framework of risk policies which are set by recommendations
of Risk Management Department and issued by the Board of the Directors and written standards which contains risk policies
and implemented by executive units.
These policies which are entered into force in line with the international practices are general standards which contains;
organization and scope of the risk management function, risk measurement policies, duties and responsibilities of the risk
management group, procedures for determining risk limits, ways to eliminate limit violations and approval and confirmation
to be given in a variety of events and situations. The scope and content of the Parent Bank’s risk management system is
given by the main risk types.
Credit risk
Credit risk is defined as the risk of the failure to comply with the requirements or failing to fulfill its obligations partially
or totally of the counter side of the transaction contract with the Parent Bank. The methodology and responsibilities of the
credit risk management, controlling and monitoring and the framework of credit risk limitations specified with the credit
risk policy.
39
The Bank defines measures and manages credit risk of the all products and activities. Board of Directors review the Parent
Bank’s credit risk policies and credit risk strategy on an annual basis as a minimum. Key Management is responsible for
the implementation of credit risk policies which are approved by Board of Directors.
As a result of loans and credit risks analysis all findings are reported to Board of Directors and Key Management on a
regular basis. In addition to transaction and company based credit risk assessment process, monitoring of credit risk also
refers to an approach with monitoring and managing the credit as a whole maturity, sector, security, geography, currency,
credit type and credit rating.
In the Parent Bank’s credit risk management, along the limits as required by legal regulations, the Parent Bank utilizes the
risk limits to undertake the maximum credit risk within risk groups or sectors that the Board of Directors determines. These
limits are determined such a way that prevents risk concentration on particular sectors.
Excess risk limits up to legal requirements and boundaries limits are considered as an exception. The Board of Directors
has the authority in exception process. The results of the control of risk limits and the evaluations of these limits are
presented by Internal Audit and Risk Management Group to Key Management and Board of Directors.
The Bank uses credit decision support systems which are created for the purpose of credit risk management, lending
decisions, controlling the credit process and credit provisioning. The consistency of the credit decision support systems
with the structure of the Parent Bank’s activities, size and complexity is examined continuously by internal systems. Credit
decision support systems contain the Risk Committee assessment and approval of Board of Directors.
Asset and Liability Management Risk
Asset-liability management risk defined as the risk of Bank’s incurring loss due to managing all financial risks that are
inflicted from the Bank's assets, liabilities and off-balance sheet transactions, ineffectively. Trading book portfolio’s market
risk, structural interest rate risk and liquidity risk of the banking portfolio; are considered within the scope of the asset
liability management.
All principles and procedures related to the generating and management of asset and liability structure and “Risk Appetite”
related to the capital to be allocated, are determined by the Board of Director. Complying the established risk limits and
being at the limits that stipulated by the legislation are the primary priority of Asset-liability management risk. Risk limits
are determined by the Board of Directors by taking into consideration of the Parent Bank's liquidity, target income level
and general expectations about changes in risk factors and risk appetite.
Board of Directors and the Audit Committee are responsible for following the Parent Bank's capital is used optimally; for
this purpose, checking the status against risk limits and providing the necessary actions are taken.
Asset and Liability Management Committee is responsible for managing the Asset and Liability risk within the framework
of operating principles that are involved in the risk appetite and risk limits are set by the Board of Directors in accordance
with the policy statement.
Measurement of the Asset and Liability Management’s risk, reporting of the measurement results and monitoring the
compliance with risk limits are the responsibility of the Risk Management Department. The course of the risk taken is
examined through different scenarios and the measurement results are tested in terms of reliability and integrity. Information
related to asset-liability management risk is reported to the Board of Directors by the Department of Risk Management
through the Risk Committee and the Audit Committee.
Asset and liability management processes and compliance with the provisions of the policy are controlled and audited by
the internal audit system. The execution of the audit, reporting the audit results, action plans for the elimination of errors
and gaps identified as a result of inspections regarding the fulfillment of the principles, are determined by the Board of
Directors.
40
Operational Risk
Operational risk is defined as “the probability of loss due to the inadequate or failed internal processes, people, systems,
external factors or legal risks”. All risks except financial risks are considered within the scope of operational risk. Studies
consisted and are formed of occur by execution of identification, definition, measurement, analysis, monitoring of
operational risk, providing and reporting the necessary control related to monitoring the progress of our country and the
world, the development of techniques and methods, necessary legal reporting, notification and conduct of follow-up
transactions. Studies on the subject are conducted by the Department of Risk Management.
Operational risks that arise due to the activities are defined in "Bank Risk Catalogue" and classified in respect of species.
Bank Risk Catalogue is kind of the fundamental document that used for identification and classification of all at the risk
that may be encountered. It is updated in line with the changes in the nature of the processes and activities.
Qualitative and quantitative methods are used in a combination for measurement and evaluation of the operational risks. In
this process, information use that obtained from "Impact-Probability Analysis", "Missing Event Data Analysis", "Risk
Indicators" methods. Methods prescribed by legal regulations are applied as minimum in determining the capital
requirement level for the operating risk.
All risks are assessed in the context of operational risk, loss events and the risk indicators same as operational risks that
occurred in the Parent Bank, are monitored on a regular basis by the Department of Risk Management and reported
periodically to the Risk Committee and the Board of Directors.
X.
Explanations on Consolidated Business Segmentation
The Group’s operations are classified as corporate, commercial, retail and private banking, and treasury/investment
banking. While the commercial and corporate operations are differentiated by the Parent Bank and its financial institutions,
according to their own criterion, in the classification of other operations, the same methods are applied by the Group.
Services to the large corporations, SMEs and other trading companies are provided through various financial media within
the course of the corporate and commercial operations. Services such as project financing, operating and investment loans,
deposit and cash management, credit cards, cheques and bills, foreign trade transactions and financing, letter of guarantee,
letter of credit, forfeiting, foreign currency trading, bill collections, payrolls, investment accounts, tax collections and other
banking services are provided for the aforementioned customer segments.
Retail banking services are comprised of individuals needs such as deposits, consumer loans, overdraft accounts, credit
cards, bill collections, remittances, foreign currency trading, safe-deposit boxes, insurance, tax collections, investment
accounts and by other banking services. Private banking category, are comprised of any kind of financial and cash
management related services are provided for individuals within the high-income segment.
Treasury transactions are comprised of medium and long term funding tools such as securities trading, money market
transactions, spot and forward TL and foreign currency trading, and derivative transactions such as forwards, swaps, futures
and options, as well as syndications and securitizations.
The Group’s investments in unconsolidated associates and subsidiaries are evaluated within the context of investment
banking.
41
Statement of information related to business segmentation of the Group is given below.
Current Period
OPERATING INCOME/EXPENSE
Interest Income
Interest Income from Loans
Interest Income from Banks
Interest Income from Money Market
Transactions
Interest Income from Securities
Finance Lease Income
Other Interest Income
Interest Expense
Interest Expense on Deposits
Interest Expense on Funds Borrowed
Interest Expense on Money Market
Transactions
Interest Expense on Securities Issued
Other Interest Expense
Net Interest Income
Net Fees and Commissions Income
Fees and Commissions Paid
Dividend Income
Trading Income/Loss (Net)
Other Income
Prov. for Loans and Other Receivables
Other Operating Expense
Income Before Tax
Tax Provision
Net Period Profit
Group Profit/Loss
Non-controlling Interest Profit/Loss
SEGMENT ASSETS
Financial Assets at FV Through P/L
Banks and Other Financial Institutions
Associates and Subsidiaries
Lease Receivables
Other
SEGMENT LIABILITIES
Deposits
Derivative Financial Liabilities Held for
Trading
Funds Borrowed
Money Market Funds
Other Liabilities(2)
Provisions
Shareholders’ Equity
(1)
(2)
Corporate
905,889
Commercial
1,661,088
9,480
22,958
49,951
6,175
164,109
96,867
233,103
Retail
1,103,287
Private
Treasury/
Investment
Unallocated
76,909
4,899,272
3,749,035
76,909
6,241
6,241
972,188
167,648
972,188
59,431
35,468
2,655,624
1,481,599
264,515
559,707
559,707
4,264
74,507
6,335
656,957
239,460
187,970
334,689
15,114
64,825
78,747
333,840
60,497
217,750
14
3,049
535,377
62,945
442,880
559,253
215,684
727,884
72,402
130,787
407,483
166
64,705,570
1,610,680
1,661,728
21,967,773
15,505,039
107,813
69,606,670 38,919,200
2,678
194,639
1,316,047
228,567
Total
26,022
6,430
41,025
178,887
12,125
1,241
60,403
2,630,077
7,446,246
188,670
48,548,740
147,418
1,193,187
5,150,627
1,871
1,440,245
29,541,880 63,371,934 16,144,016
9,003
85,166
284,408
277,238
762,534
5,078,705
43,950,913
14,113,980
334,689
15,114
2,243,648
423,635
654,489
230,854
41,025
178,887
1,463,731
687,895
2,403,862
1,259,169
254,095
1,005,074
905,030
100,044
2,630,077
7,446,246
188,670
48,548,740
178,652,202
1,193,187
5,150,627
2,928,598
47,281,453
294,019,800
145,139,583
1,117,349
1,117,349
25,437,462
20,326,512
23,542,159
216,736
40,942,501
20,326,512
23,542,159
19,775,168
12,335,124
30,841,404
294,019,800
19,450,619
12,335,124
30,841,404
The amount of TL 3,689,161 of Includes Tier 2 subordinated bonds which are classified on the balance sheet as subordinated loans. The borrower
funds are presented in “Other Liabilities”.
The borrower funds are presented in “Other Liabilities”.
42
SECTION FIVE: DISCLOSURES AND FOOTNOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
I.
DISCLOSURES AND FOOTNOTES ON CONSOLIDATED ASSETS
a.
Cash and Central Bank of Turkey:
a.1.
Information on Cash and Balances with the Central Bank of Turkey:
Current Period
TL
Cash in TL / Foreign Currency
Other
Total
a.2.
1,612,577
2,725,798
4,338,375
FC
884,179
22,228,461
260,609
23,373,249
Prior Period
TL
FC
1,623,885
3,138,527
4,762,412
906,882
19,418,837
55,416
20,381,135
Information on Balances with the CBT:
Current Period
Unrestricted Demand Deposit
Unrestricted Time Deposit
Restricted Time Deposit
Other (1)
Total
Prior Period
TL
FC
TL
FC
2,725,798
2,811,506
3,138,527
2,627,004
2,725,798
19,416,955
22,228,461
3,138,527
16,791,833
19,418,837
(1)
The amount of reserve deposits held at the Central Bank of Turkey regarding the foreign currency liabilities
a.3.
Information on reserve requirements:
As per the Communiqué no. 2013/15 “Reserve Deposits” of the Central Bank of the Republic of Turkey (“CBRT”), banks
keep reserve deposits at the CBRT for their TL and FC liabilities mentioned in the communiqué. The reserve deposit rates
vary according to their maturity compositions; the reserve deposit rates are realized between 5% - 11.5% for TL deposits
and other liabilities, between 9% - 13% for FC deposits and between 6% - 20% for other FC liabilities. Reserves are
calculated and set aside every two weeks on Friday for 14-day periods. In accordance with the related communiqué, CBRT
pays interests TL reserves.
b.
Information on Financial Assets at Fair Value through Profit and Loss:
b.1.
Financial assets at fair value through profit and loss, which are given as collateral or blocked:
Financial assets at fair value through profit and loss, which are given as collateral or blocked as at 31 March 2015 are
amounting to TL 71,229 (31 December 2014: TL 85,724).
b.2.
Financial assets at fair value through profit and loss, which are subject to repurchase agreements:
Financial assets at fair value through profit and loss, which are subject to repurchase agreements as at 31 March 2015 are
amounting to TL 421,548 (31 December 2014: TL 318,315).
43
b.3.
Positive differences on derivative financial assets held for trading:
Current Period
TL
Forward Transactions
Swap Transactions
Prior Period
FC
TL
FC
30,958
94,348
26,197
31,501
737,716
164,445
1,031,589
202,935
Futures
429
8
8
Options
4,881
90,731
2,352
67,078
67
24,287
7
13,277
200,780
1,240,963
231,499
849,572
Other
Total
c.
Information on Banks:
Current Period
TL
Prior Period
FC
TL
FC
Banks
Domestic Banks
Foreign Banks
1,235,146
4,012,344
3,123,784
1,293,062
266,796
1,931,960
286,035
1,303,576
1,501,942
5,944,304
3,409,819
2,596,638
Foreign Head Office and Branches
Total
d.
Information on Financial Assets Available for Sale:
d.1.
Information on financial assets available for sale, which are given as collateral or blocked:
Financial assets available for sale, which are given as collateral or blocked amount to TL 11,985,685 as at 31 March 2015
(31 December 2014: TL 10,083,896).
d.2.
Information on financial assets available for sale, which are subject to repurchase agreements:
Financial assets available for sale which are subject to repurchase agreements amount to TL 18,507,207 as at 31 March
2015 (31 December 2014: TL 20,785,043).
d.3.
Information on financial assets available for sale:
Current Period
Debt Securities
Quoted on a Stock Exchange
Not-Quoted
(1)
Share Certificates
Prior Period
48,294,497
45,237,578
39,879,451
37,708,258
8,415,046
7,529,320
105,198
110,846
33,040
38,687
Not-Quoted
72,158
72,159
Value Increases / Impairment Losses (-)
242,669
115,565
Other
391,714
444,270
Total
48,548,740
45,677,129
(1)
Refers to the debt securities, which are not quoted on the Stock Exchange or which are not traded, although quoted, on the Stock Exchange at the end
of the related period.
44
e.
e.1.
Information related to loans:
Information on all types of loans and advances given to shareholders and employees of the group:
Current Period
Cash
Direct Lending to Shareholders
Corporate Shareholders
Individual Shareholders
Indirect Lending to Shareholders
Loans to Employees
Total
Prior Period
Non-Cash
228,616
228,616
Cash
385
385
Non-Cash
225,850
225,850
261
261
e.2.
Information about the first and second group loans and other receivables including loans that have been
restructured or rescheduled:
Cash Loans
Non-specialized loans
Corporation loans
Export loans
Import loans
Loans Given to Financial Sector
Consumer loans
Credit Cards
Other
Specialized Loans
Other Receivables
Total
Standard Loans and Other
Receivables
Loans and
Amendments on
Other
Conditions of Contract
Receivables
Amendments
related to the
extension of
Other
the payment
plan
174,792,130
2,395,568 1,743,988
86,328,923
804,716
8,901,446
57,974
3,489,785
34,481,929
9,784,074
31,805,973
174,792,130
1,323,735
1,699,921
209,143
2,395,568
Loans and Other Receivables Under Close
Monitoring
Loans and
Amendments on Conditions of
Other
Contract
receivables
Amendments
related to the
extension of
Other
the payment
plan
3,095,777
731,868
120,021
1,135,625
283,865 (1)
35,483
72,937
2,143
89,721
268,309
87,830
34,290
44,067
1,038,256
474,746
374,213
1,743,988
3,095,777
731,868
120,021
50,248
(1)
The amount of TL 36,063 loans provided to maritime sector which have extended payment plans within the scope of Temporary 6. Substance of the
“Regulation on Procedures and Principles for Determination of Qualifications of Loans and Other Receivables by Banks and Provisions to be Set Aside.
Receivables
Number of Amendments Related to the Extension of the
Payment Plan
Extended for 1 or 2 Times
Extended for 3,4 or 5 Times
Extended for More than 5 Times
(1)
2,329,692
65,254
622
Loans and Other Receivables Under
Close Monitoring
716,841 (1)
14,890 (1)
137
“Regulation on Procedures and Principles for Determination of Qualifications of Loans and Other Receivables by Banks and Provisions to be Set
Aside.
Receivables
The Time Extended via the Amendment on Payment Plan
0-6 Months
6 Months - 12 Months
1-2 Years
2-5 Years
5 Years and More
709,216
252,680
401,877
730,884
300,911
Loans and Other Receivables Under
Close Monitoring
52,552
85,298
158,305
247,700 (1)
188,013 (1)
(1)
“Regulation on Procedures and Principles for Determination of Qualifications of Loans and Other Receivables by Banks and Provisions to be Set Aside.
45
e.3.
Information on consumer loans, retail credit cards, personnel loans and personnel credit cards:
Short-Term
Consumer Loans-TL
Real Estate Loans
Vehicle Loans
General Purpose Consumer Loans
Other Consumer Loans
Consumer Loans – FC Indexed
Real Estate Loans
Vehicle Loans
Consumer Loans – FC
Real Estate Loans
Vehicle Loans
Retail Credit Cards-TL
With Instalments
Without Instalments
Retail Credit Cards-FC
With Instalments
Without Instalments
Personnel Loans-TL
Real Estate Loans
Vehicle Loans
Personnel Loans- FC Indexed
Real Estate Loans
Vehicle Loans
Personnel Loans-FC
Real Estate Loans
Vehicle Loans
Personnel Credit Cards-TL
With Instalments
Without Instalments
Personnel Credit Cards-FC
With Instalments
Without Instalments
Overdraft Accounts – TL (real persons)
Overdraft Accounts – FC (real persons)
Total
560,940
16,560
8,861
535,519
Medium and LongInterest and Income
Term
Accruals
33,850,684
206,278
14,196,366
73,282
881,276
5,853
18,773,042
127,143
Total
34,617,902
14,286,208
895,990
19,435,704
16,983
16,983
15,783
15,783
32,766
32,766
233,460
2678
90
230,692
1,170
14
1
1,155
248,908
2692
95
246,121
8,855,378
3,639,182
5,216,196
170,729
170,729
30,881
30,881
9,056,988
3,809,911
5,247,077
10,845
77,263
2,788
1,451
73,024
538
39
9
490
88,646
2,827
1,548
84,271
189
189
168
168
357
357
924
4,284
221
24
5,232
221
924
4,063
24
5,011
496
496
127,204
50,435
76,769
7,571
177
263,086
516,688
9,686
44,704,377
14,278
4
14,274
88
10,757
126,708
50,435
76,273
509,117
8,977
10,087,167
532
34,354,124
46
e.4.
Information on commercial installments loans and corporate credit cards:
Short-Term
Commercial Loans With Instalments-TL
Real Estate Loans
1,656,892
Medium and Long Interest and Income
Term
Accruals
24,943,434
220,681
Total
26,821,007
5,786
1,117,630
6,561
1,129,977
81,717
3,124,865
18,837
3,225,419
1,569,389
20,700,939
195,283
22,465,611
83,586
1,746,718
262,770
2,093,074
642
105,823
24,128
130,593
464
406,175
40,197
446,836
82,480
1,234,720
198,445
1,515,645
19
964,715
3,077
967,811
19
964,715
3,077
967,811
1,032,466
37,550
4,612
1,074,628
With Instalments
188,022
37,550
Without Installments
844,444
Vehicle Loans
General Purpose Commercial Loans
Other Commercial Loans
Commercial Loans With Instalments-FC
Indexed
Real Estate Loans
Vehicle Loans
Commercial Loans With Instalments-FC
Real Estate Loans
Vehicle Loans
Corporate Credit Cards-TL
225,572
4,612
849,056
Corporate Credit Cards-FC
With Instalments
Without Instalments
Overdraft Accounts – TL (corporate)
(corporate)
Overdraft Accounts – FC (corporate)
1,063,133
12,159
1,075,292
13,928
1,156
350
15,434
Total
3,850,024
27,693,573
503,649
32,047,246
e.5.
Domestic and foreign loans:
Domestic Loans
Foreign Loans
Total
Current Period
175,353,983
3,298,219
178,652,202
Prior Period
165,180,142
3,147,946
168,328,088
47
e.6.
Loans granted to subsidiaries and associates:
Current Period
Direct Loans Granted to Subsidiaries and Associates
Indirect Loans Granted to Subsidiaries and Associates
Total
e.7.
Prior Period
2,809
1,278
2,809
1,278
Specific provisions provided against loans:
Specific Provisions
Current Period
Prior Period
Loans and Receivables with Limited Collectability
109,942
78,619
Loans and Receivables with Doubtful Collectability
280,557
269,293
1,708,378
1,656,793
2,098,877
2,004,705
Uncollectible Loans and Receivables
Total
e.8.
Information on non-performing loans (Net):
e.8.1.
Information on loans and other receivables included in non-performing loans, which are restructured or
rescheduled by the Group:
Group III
Group IV
Group V
Loans and
Receivables with
Limited Collectability
Loans and
Receivables with
Doubtful
Collectability
Uncollectible Loans
and Other
Receivables
Current Period
(Gross amounts before the specific provisions)
28,882
32,455
79,904
28,882
32,455
79,904
26,499
34,403
60,245
26,499
34,403
60,245
Restructured Loans and Other Receivables
Rescheduled Loans and Other Receivables
Prior Period
(Gross amounts before the specific provisions)
Restructured Loans and Other Receivables
Rescheduled Loans and Other Receivables
48
e.8.2.
Movement of total non-performing loans:
Group III
Group IV
Group V
with Limited
Collectability
384,519
with Doubtful
Collectability
533,476
Corporate and Commercial Loans
195,338
240,973
1,216,861
Retail Loans
110,853
155,389
328,113
Credit Cards
78,328
137,114
181,693
Prior Period Ending Balance
Other
Additions (+)
Uncollectible Loans and
Other Receivables
1,781,506
54,839
572,615
3,595
24,385
338,707
1,831
11,216
Retail Loans
138,136
562
11,825
Credit Cards
95,772
1,202
Other
306
1,038
Transfers from Other NPL categories (+)
404,119
319,533
231,930
194,948
Retail Loans
100,029
64,212
Credit Cards
72,160
60,373
Other
Transfers to Other NPL categories (-)
404,119
319,533
231,930
194,948
Retail Loans
100,029
64,212
Credit Cards
72,160
60,373
Other
Collections (-) (1)
79,617
63,544
134,502
27,090
22,720
59,708
Retail Loans
31,662
23,401
57,119
Credit Cards
20,865
17,423
17,324
394
160,399
388
63,307
Other
351
Write-Offs (-) (1)
Retail Loans
65,816
Credit Cards
6
30,950
(51)
5
1,578
(34)
(48)
1,068
Retail Loans
(17)
53
510
Other
Foreign Currency Effect
326
Credit Cards
Other
Current Period Ending Balance
473,347
557,724
1,832,101
274,991
256,630
1,301,078
Retail Loans
117,281
168,420
281,725
Credit Cards
81,075
132,674
194,098
109,942
280,557
1,708,378
68,354
128,927
1,212,830
Retail Loans
25,283
85,072
246,250
Credit Cards
16,305
66,558
194,098
Other
55,200
Other
Net Balance on Balance Sheet
55,200
363,405
277,167
123,723
(1)
In the current period, a portfolio of non-performing loans amounting to TL 189,224, of which TL 10 was written-off in prior periods, is sold to Final
Varlık Yönetimi A.Ş with a value of TL 29,091.
49
e.8.3.
Information on the Group’s foreign currency non-performing loans and other receivables:
Group III
Group IV
Group V
with Limited
Collectability
with Doubtful
Collectability
Uncollectible Loans and
Other Receivables
35,619
28,945
481,163
20,832
14,623
481,163
14,787
14,322
13,564
34,125
419,332
3,076
18,254
419,332
10,488
15,871
Current Period:
Period Ending Balance
Net Balance on Balance
Sheet(1)
Prior Period:
Net Balance on Balance
(1)
Sheet(1)
In addition to the loans extended in foreign currency, loans which are monitored in Turkish Lira are included
e.8.4.
Information on gross and net non-performing loans and receivables as per customer categories:
Group III
Group IV
Group V
Loans and Receivables Loans and Receivables
Uncollectible
with Limited
with Doubtful
Loans and Other
Collectability
Collectability
Receivables
Current Period (Net)
363,405
277,167
123,723
Loans to Individuals and Corporate (Gross)
473,347
557,724
1,776,815
109,942
280,557
1,653,092
363,405
277,167
123,723
Loans to Individuals and Corporate (Net)
Banks (Gross)
86
86
Banks (Net)
Other Loans and Receivables (Gross)
55,200
55,200
Other Loans and Receivables (Net)
Prior Period (Net)
305,900
264,183
124,713
Loans to Individuals and Corporate (Gross)
384,519
533,476
1,726,580
78,619
269,293
1,601,867
305,900
264,183
124,713
Loans to Individuals and Corporate (Net)
Banks (Gross)
87
87
Banks (Net)
Other Loans and Receivables (Gross)
54,839
54,839
Other Loans and Receivables (Net)
f.
Held to Maturity Investments:
f.1.
Information on held to maturity investments, which are given as collateral or blocked:
As at 31 March 2015, held to maturity investments, which are given as collateral or blocked amount to TL 215,483 (31
December 2014: TL 447,605).
50
f.2.
Information on held to maturity investments, which are subject to repurchase agreements:
As at 31 March 2015, assets held to maturity, which are subject to repurchase agreements amount to TL 250,065 (31
December 2014: TL 348,913).
f.3.
Information on government securities held to maturity:
Current Period
Government Bonds
Prior Period
1,101,289
1,307,192
1,101,289
1,307,192
Treasury Bills
Other Public Debt Securities
Total
f.4.
Information on held-to-maturity investments:
Current Period
Debt Securities
Not Quoted
(1)
Prior Period
1,193,187
1,391,860
1,096,707
1,169,369
96,480
222,491
1,193,187
1,391,860
Impairment Losses (-)
Total
(1)
Indicates unlisted debt securities, and debt securities that have not been traded at the end of the related periods although they are listed.
f.5. Movement of held to maturity investments within the period
Beginning Balance
Foreign Exchange Differences Arising on Monetary Assets
Purchases During the Year
Disposals through Sales and Redemption
Valuation Effect
Balance at the End of the Period
g.
Information on Associates (Net):
g.1.
Information on unconsolidated associates: None.
g.2.
Information on consolidated associates:
Prior Period
7,728,447
692
86,112
(6,509,055)
24,898
1,193,187
85,664
1,391,860
Address (City/
Country)
Bank’s Share Percentage-If
Different, Voting Percentage (%)
Bank’s Risk Group Share
Percentage (%)
İstanbul/TURKEY
20.58
79.42
Title
1- Arap Türk Bankası A.Ş.
Current Period
1,391,860
2,177
45,452
(271,200)
Information on financial statements of associates in the above order:
Total Assets
3,995,839
(1)
Shareholders’
Equity
557,917
Total
Tangible
Assets
27,458
Interest
Income (1)
38,926
Securities
Income
Current
Period
Profit/Loss
16,356
Prior Period
Profit/Loss
Fair
Value
18,714
Includes interest income on securities.
51
g.3.
Movement of investments in consolidated associates:
Beginning balance
Movements during the period
Purchases (1)
Bonus shares acquired
Current Period
124,575
Prior Period
85,295
39,280
Dividends received from the current year profit
Sales
Revaluation Increase
Impairment
Balance at the end of the period
Capital commitments
Contribution in equity at the end of the period (%)
(1)
124,575
124,575
Due to Arap Türk Bank A.Ş.’ capital increase through issuance of bonus shares in the prior period.
g.4.
Sectoral information on consolidated associates and the related carrying amounts:
Current Period
Banks
Prior Period
124,575
124,575
124,575
124,575
Insurance Companies
Factoring Companies
Leasing Companies
Finance Companies
Other Financial Participations
Total
g.5.
Consolidated associates traded on a stock exchange: None.
g.6.
Consolidated associates disposed of in the current period: None.
g.7.
Consolidated associates acquired in the current period: None.
g.8.
Other issues related to associates: None
52
h.
Information on subsidiaries (Net):
h.1.
Information on the significant size of the subsidiaries' equity:
Türkiye Sınai
Kalkınma
Bankası A.Ş.
COMMON EQUITY TIER I CAPITAL
Paid-in Capital to be Entitled for
Compensation after All Creditors
Share Premium
Reserves
Other Comprehensive Income according to
TAS
Current and Prior Periods ‘Profits
Bonus Shares from Associates, Subsidiaries
and Joint-Ventures not Accounted in
Current Period's Profit
Current and Prior Periods' Losses not
Covered by Reserves, and Losses
Accounted under Equity According to
TAS (-)
Leasehold Improvements on Operational
Leases (-)
Goodwill and Other Intangible Assets and
Related
Deferred Taxes (-)
Additional Tier 1 capital
Total regulatory adjustments to Additional
Tier 1 capital(-)
TIER I CAPITAL
TIER II CAPITAL
CAPITAL
Total Adjustment to Capital (-)
EQUITY
h.2.
Insurance /
Reinsurance
Companies
İş
İş Yatırım
Gayrimenkul
İş Finansal
Menkul
Yatırım
Kiralama A.Ş.
Değerler A.Ş.
Ortaklığı A.Ş.
1,169,627
657,302
495,160
2,245,458
2,305,288
1,500,374
1,540,000
920,546
353,752
289,343
424
28,420
96,167
429,373
328,176
76,281
220,263
461,503
332,000
169,284
1,302
52,308
2,092
7,662
23,711
131,965
1,938
29,169
1,162
3,190
12,640
652
15,907
2,245,458
157,131
2,402,589
434
2,402,155
506
947
16,717
26
279
12,854
63,627
104
1,117
51,416
2,241,661
1,169,523
656,185
443,744
2,241,661
1,169,523
656,185
443,744
2,241,661
1,169,523
656,185
443,744
Information on unconsolidated subsidiaries: None.
53
h.3.
Information on consolidated subsidiaries:
No
123456789101112131415161718(1)
Title
Address (City/ Country)
Anadolu Hayat Emeklilik A.Ş.
CJSC İşbank
Efes Varlık Yönetim A.Ş.
Is Investments Gulf Ltd.
İş Faktoring A.Ş.
İş Gayrimenkul Yatırım Ortaklığı A.Ş.
İş Girişim Sermayesi Yatırım Ortaklığı A.Ş.
İş Portföy Yönetimi A.Ş.
İş Yatırım Menkul Değerler A.Ş.
İş Yatırım Ortaklığı A.Ş.
İşbank AG
Maxis Investments Ltd.
Milli Reasürans T.A.Ş.
TSKB Gayrimenkul Yatırım Ortaklığı A.Ş.
Yatırım Finansman Menkul Değerler A.Ş.
Istanbul/Turkey
Istanbul/Turkey
Moscow/Russia
Istanbul/Turkey
Dubai/UAE
Istanbul/Turkey
Istanbul/Turkey
Istanbul/Turkey
Istanbul/Turkey
Istanbul/Turkey
Istanbul/Turkey
Istanbul/Turkey
Frankfurt/Germany
London/England
Istanbul/Turkey
Istanbul/Turkey
Istanbul/Turkey
Istanbul/Turkey
Bank’s Share
Percentage-If
Different, Voting
Rights (%) (1)
Bank’s Risk
Group Share
Percentage
(%)
43.92
71.55
100.00
63.96
67.62
40.73
40.10
50.42
33.48
65.84
67.62
24.15
100.00
67.62
76.64
25.93
43.01
41.74
56.08
28.45
0.00
36.04
32.38
59.27
59.90
49.58
66.52
34.16
32.38
75.85
0.00
32.38
23.36
74.07
56.99
58.26
Indirect share of the Group is considered as the Parent Bank’s share percentage.
Financial statement information related to consolidated subsidiaries in the above order:
(1)
No
Total
Assets
123456789101112131415161718-
3,672,620
10,456,039
667,507
190,578
1,351
1,535,285
5,088,522
1,958,090
259,147
87,722
5,643,838
231,211
2,913,592
78,188
2,115,303
375,552
17,911,667
787,775
Shareholder’
Equity
750,034
597,597
183,061
35,321
1,095
82,016
676,318
1,169,653
255,528
77,091
895,547
230,791
364,855
16,411
724,579
205,386
2,395,866
75,234
Total
Tangible
Assets
92,473
40,459
38,301
6,114
141
895
20,337
1,651,199
404
1,751
99,213
97
44,042
321
46,210
356,195
261,982
3,842
Interest
Income (1)
Securities
Income
42,782
76,160
10,560
12,149
15,090
6,950
7
29,186
91,159
1,452
2,530
1,805
74,479
3,769
20,656
1,926
19,951
156
231,366
6,813
1,403
2,646
1,463
1,849
698
18,619
383
2,662
19,168
20,402
2,108
Current
Period
Profit/Loss
Prior
Period
Profit/Loss
18,094
32,834
11
3,558
(512)
6,186
25,009
5,790
1,195
2,962
13,138
1,179
609
(671)
9,245
(5,127)
97,992
722
14,910
22,970
(7,234)
(3,462)
(8)
(3,721)
20,528
18,302
2,312
2,742
3,334
4,928
2,171
(384)
1,662
(1,770)
98,819
239
Fair
Value
Additional
Shareholders’
Equity
Required
Includes interest income on securities.
54
Movement of investments in subsidiaries (1):
h.4.
Balance at the Beginning of the Period
Movements in the Period
Purchases (2)
Bonus Shares Acquired
Current Period
4,122,155
Prior Period
3,694,708
103,451
179,845
22,628
247,602
4,248,234
4,122,155
Dividends Received from the Current Year Profit
Sales
Revaluation Surplus (3)
Impairment
Capital Commitments
Contribution in equity at the end of the period (%)
(1)
Reveals the information related to companies subject to consolidation in which Bank directly owns share.
The current period balance, arise from participation of capital increase formed by CJSC İşBank, the prior year balance related to profit oriented
capital increases acquisitions.
(2)
(3)
The relevant amounts represent the increases and decreases in the market value of subsidiaries quoted on the stock exchange.
h.5.
Sectoral information on consolidated subsidiaries and the related carrying amounts (1):
Banks
Insurance Companies
Factoring Companies
Leasing Companies
Finance Companies
Other Financial Subsidiaries
Total
(1)
Current Period
1,735,281
1,673,512
Prior Period
1,643,985
1,694,716
121,857
121,857
717,584
4,248,234
661,597
4,122,155
Current Period
3,244,741
Prior Period
3,222,112
Information of the consolidated subsidiaries in which the Bank has direct ownership is presented.
h.6.
Consolidated subsidiaries traded on stock exchange (1):
Traded on domestic stock exchanges
Traded on foreign stock exchanges
(1)
Information of the consolidated subsidiaries in which the Bank has direct ownership is presented.
h.7.
h. 8.
h. 9.
i.
Consolidated subsidiaries disposed of in the current period: None.
Subsidiaries acquired in the current period: None.
Other issues on subsidiaries: None
Information on jointly controlled entities (Net):
None
55
j.
Information regarding finance lease receivables (Net):
j.1.
Presentation of finance lease receivables according to their remaining maturities:
Current Period
Gross
Net
1,146,350
936,984
1,888,717
1,635,000
392,484
354,743
3,427,551
2,926,727
Less than 1 Year
1-4 Years
More than 4 Years
Total
j.2.
Information regarding net investments made on finance lease:
Current Period
3,427,551
500,824
2,926,727
Gross Finance Lease Investment
Unearned Finance Revenue from Finance Lease (-)
Net Finance Lease Investment
j.3.
Prior Period
Gross
Net
1,068,829
871,318
1,748,018
1,508,504
402,154
364,025
3,219,001
2,743,847
Prior Period
3,219,001
475,154
2,743,847
Presentation of operating lease receivables according to their remaining maturities:
As at 31 March 2015, the remaining maturities of the Group's operating lease receivable is less than 1 year the total
amount is TL 1,871 (31 December 2014: TL 2,352).
k.
Explanations on derivative financial assets held for risk management:
k.1.
Positive differences on derivative financial instruments held for hedging purposes
Current Period
TL
Fair Value Hedge Risk
Cash Flow Hedge Risk
Net Foreign Investments Hedge
Total
Prior Period
FC
13,101
TL
FC
13,101
As at 31 March 2015, the face values and the net fair values, recognised in the balance sheet, of the derivative financial
instruments held for risk management purposes, are summarized below:
Current Period
Face Value
Interest Rate Swaps
FC
TL
2,277,440
2,277,440
Asset
Prior Period
Liability
Face Value
Asset
Liability
13,101
13,101
56
k.2.
Information on fair value hedge accounting:
Current Period:
Hedging
Item
Type of
Risk
Hedged Item
Fair Value
Change of
Hedged
Item(1)
Fair Value of Hedging
Instrument(1)
Asset
Interest Rate Swap
Transactions
Interest Rate Swap
Transactions
(1)
Fixed Rate
Issued Eurobond
Fixed Rate
Loans Used
Interest Rate
Risk
Interest Rate
Risk
Income St Effect
(Profit/Loss
Through Derivative
Financial
Instruments)
Liability
(8,057)
6,014
(2,043)
(2,277)
1,882
(395)
The fair value of hedged item and hedging instrument are presented as net market value excluding credit risk and accumulated interest.
Prior Period: None
l.
Information on investment property:
Investment properties are properties that the Group holds to earn rentals. Explanations on these subjects are given in Section
Three Note XIV.
Current Period
Acquisition Cost
- Acquisitions
- Disposals (-)
- Impairment
- Transfers
Accumulated Amortization
- Depreciation Charge (-)
- Disposals
- Impairment
- Transfers
Balance at the End of the Current Period
Net Book Value at the End of the Prior Period
Net Book Value at the End of the Period
Prior Period
1,642,289
1,573,379
59,707
(2,796)
662
1,699,862
147,608
(110,935)
16,801
15,436
1,642,289
(254,638)
(231,197)
(4,979)
(19,975)
(259,617)
1,387,651
1,440,245
(3,466)
(254,638)
1,342,182
1,387,651
57
m.
Information on deferred tax asset:
As at 31 March 2015, the Parent Bank and the other consolidated Group companies has deferred tax asset amounting to TL
618,125. Such deferred tax asset is calculated based on the temporary differences between the book value of assets and
liabilities and their tax basis measured as per the prevailing tax regulation. When the items comprising the temporary
differences are followed under equity, the related tax asset/liability is directly recognized under equity items.
Current Period
Tangible Assets Base Differences
Provisions (1)
Finance Lease Income Accruals
Valuation of Financial Assets
Other (2)
Net Deferred Tax (Asset)/Liability:
(1)
(2)
n.
Prior Period
11,571
12,922
(623,297)
(608,527)
4,265
4,216
11,558
20,840
(22,222)
(67,388)
(618,125)
(637,937)
Comprised of employee termination benefits, actual and technical deficits of the pension fund, insurance technical provisions, the provisions for
credit card bonus points, and other provisions.
The investment incentive application has ceased starting from 1 January 2006 and the investment incentives of companies, which have not been
used as at 31 December 2005 are enabled to be used by deducting from incomes of years 2006, 2007 and 2008; and it is stated that the amount, if
not deducted from the 2008 income, will not be transferred to other periods. On the other hand, the Court of Constitution has cancelled this
regulation that removes the gained rights at the meeting on 15 October 2009, finding it against the Constitution, and in this way, the time limitation
with respect to the investment incentive was removed as at the date of reporting. The related decision was published on the Official Gazette dated 8
January 2010. Within this context, İş Finansal Kiralama AŞ., one of the consolidated companies, has TL 222,560 (31 December 2014: TL 283,354)
unused investment incentive and TL 6,578 (31 December 2014: TL 18,735) of the “Other” item on the above table consists of the deferred tax
amount calculated over the related investment incentive.
Information on assets held for sale and discontinued operations:
Current Period
Net Book Value at the Beginning of the Period
Additions
Transfers (Net)
Disposals (-) (Net)
Prior Period
65,993
931
15,906
68,649
6,340
87,538
(12,541)
(94,613)
(211)
(1,908)
9
(13)
70,087
65,993
Depreciation
Exchange Difference
Net Book Value at the End of the Period
The Group has no discontinued operations. The assets classified as “Assets Held for Sale” of the Group consist of real
estates. Those real estates of the Parent Bank subject to sale are announced on the Parent Bank’s web site. Announcements
about the real estate’s subject to sale are also made by means of newspaper advertisements and similar media.
o.
Information on Other Assets of the Group:
The “other assets” item does not exceed 10% of total assets.
58
II.
DISCLOSURES AND FOOTNOTES ON CONSOLIDATED LIABILITIES
a.
Information on Deposits:
a.1.
The maturity structure of deposits (Current Period):
Demand
Savings Deposits
7 Days
Notice
Up to 1
Month
1-3
Months
3-6
Months
6 Months
to 1 Year
1 Year and Accumulated
Over
Deposits
Total
8,964,474
2,238,345
38,462,699
1,165,724
417,267
402,701
2,529
51,653,739
Foreign Currency Deposits
12,436,143
7,142,942
31,723,107
4,179,574
1,806,437
7,524,887
610
64,813,700
Residents in Turkey
10,728,437
6,160,603
28,808,099
3,572,466
1,080,382
2,620,277
470
52,970,734
1,707,706
982,339
2,915,008
607,108
726,055
4,904,610
140
11,842,966
599,407
45,639
30,538
2,136
346
23
678,089
5,889,772
1,980,568
6,463,969
109,193
71,585
31,337
14,546,424
233,671
169,987
3,634,574
595,635
3,986
1,895
4,639,748
239,016
15,685
2,049,142
2,616,380
2,326,838
228,113
875,720
6,758,741
Residents Abroad
Public Sector Deposits
Commercial Deposits
Other Institutions Deposits
Precious Metals Deposits
Interbank Deposits
The Central Bank of
Turkey
Domestic Banks
Foreign Banks
Participation Banks
1,794,119
322
545,132
166,558
392
392
3,629
2,200,426
510,077
524,321
415,954
1,816,761
166,558
10,301
4,258
2,728,691
217,812
871,462
4,012,868
16,790
16,790
Other
Total
30,462,718
a.2.
14,193,861
82,642,047
6,218,820
2,766,750
8,852,248
3,139
145,139,583
The maturity structure of deposits (Prior Period):
Demand
Savings Deposits
7 Days
Notice
Up to 1
Month
1-3
Months
3-6
Months
6 Months
to 1 Year
1 Year and Accumulated
Over
Deposits
Total
8,543,512
2,564,643
36,743,275
1,471,201
341,003
378,626
50,042,260
Foreign Currency Deposits
11,177,918
6,611,636
28,207,886
2,493,454
2,329,034
5,086,414
55,906,342
Residents in Turkey
9,509,882
5,905,555
24,687,708
1,803,473
513,111
2,223,984
44,643,713
Residents Abroad
1,668,036
706,081
3,520,178
689,981
1,815,923
2,862,430
11,262,629
628,758
20,936
53,087
3,614
181
23
706,599
6,385,381
2,151,627
4,937,298
105,355
44,616
17,226
13,641,503
228,062
117,147
3,640,888
738,522
29,693
1,372
4,755,684
258,242
16,526
2,759,546
3,562,153
1,726,811
79,532
482,446
6,689,292
Commercial Deposits
Other Institutions Deposits
Precious Metals Deposits
Interbank Deposits
The Central Bank of
Turkey
Domestic Banks
Foreign Banks
Participation Banks
2,484,485
653,743
293
184,607
367
367
7,637
3,035,351
484,018
581,292
526,802
1,242,793
184,607
12,219
6,350
3,545,575
67,313
476,096
3,078,903
64,447
64,447
Other
Total
30,101,859
15,028,142
75,309,538
4,996,753
3,082,301
5,982,633
134,501,226
59
a.3.
Savings deposits which are under the guarantee of Savings Deposits Insurance Fund exceeding the insurance limit:
Savings Deposits
Under the Guarantee of Savings Deposits
Insurance Fund
Current Period
Prior Period
Exceeding the Limit of Deposit
Insurance Fund
Current Period
Prior Period
Savings Deposits
27,161,106
26,123,513
24,053,248
23,503,729
Foreign Currency Savings Deposits
Other Deposits in the Form of Savings
Deposits
11,913,661
11,198,985
25,598,462
23,572,861
1,259,790
1,831,203
779,959
865,810
2,758,972
2,754,222
243,089
215,809
114,177
18,144
Foreign Branches’ Deposits Under Foreign
Authorities’ Insurance
Off-shore Banking Regions’ Deposits Under
Foreign Authorities Insurance
a.4.
Savings deposits which are not under the guarantee of deposit insurance fund:
Foreign Branches’ Saving Deposits and Other Accounts
Current Period
546,961
Prior Period
431,891
12,494
12,077
Deposits and Other Accounts held by Main Shareholders and their Relatives
Deposits and Other Accounts of the Chairman and Members of Board of Directors, Chief
Executive Officer, Senior Executive Officers and their Relatives
Deposits and Other Accounts Covered by Assets Generated Through the Offenses
Mentioned in Article 282 of the Turkish Criminal Code Numbered 5237 and Dated 26
September 2004
Deposits in the Banks to be Engaged Exclusively in Off-shore Banking in Turkey
b.
Information on Derivative Financial Liabilities Held for Trading:
Negative differences on derivative financial liabilities held for trading:
Current Period
Derivative Financial Liabilities Held for Trading
TL
Forward Transactions
Swap Transactions
Prior Period
FC
TL
FC
35,566
120,751
11,438
47,090
336,345
503,317
244,943
364,095
Futures
750
280
2
Options
5,460
111,583
1,363
77,081
Other
2,903
674
2,905
644
381,024
736,325
260,929
488,912
Total
c.
Information on Funds Borrowed:
c.1.
Information on banks and other financial institutions:
Current Period
TL
Prior Period
FC
TL
FC
Funds borrowed from the Central Bank of
Turkey
Domestic banks and institutions
2,479,845
920,990
2,362,826
808,174
Foreign banks, institutions and funds
3,491,868
33,859,667
2,731,384
28,114,730
Total
5,971,713
34,839,395
5,094,210
28,965,797
58,738
42,893
60
c.2.
Maturity analysis of funds borrowed:
Current Period
TL
Prior Period
FC
TL
FC
Short-term
4,466,128
11,925,254
4,084,397
9,849,605
Medium and Long-term
1,505,585
22,914,141
1,009,813
19,116,192
Total
5,971,713
34,839,395
5,094,210
28,965,797
c.3.
Information on funds borrowed:
Information on funds received through syndicated loans and securitization deals, which take a significant place among
funds borrowed, are given below.
Syndicated loans:
Date of Use
Funds Borrowed
Maturity
May 2014
USD 400,000,000 + EUR 672,000,000
1 year (with 1 year extension option)
July 2014
USD 10,000,000 + EUR 91,000,000
1 year
USD 326,000,000 + EUR 756,000,000
1 year (with 1 year extension option)
USD 36,900,000 + EUR 66,750,000
1 year
September 2014
March 2015
Securitization deals:
The Parent Bank obtained funds by way of putting on securitization deals all its claims and receivables based on diversified
payment rights in USD, EUR and GBP through its SPV TIB Diversified Payment Rights Finance Company.
Information on funds received through securitization is given below.
Date
Oct.11
Oct.11
Jun.12
Jun.12
Dec.13
Dec.13
Dec.14
Mar.15
Special Purpose Vehicle (SPV)
TIB Diversified Payment Rights Finance
Company
Company
Company
Company
Company
Company
Company
Company
Final Maturity
Remaining Debt Amount
as at 31 March 2015
5 years
USD 43,750,000
EUR 160,000,000
5-7 years
EUR 103,333,333
USD 225,000,000
5 years
USD 187,500,000
EUR 125,000,000
12 years
EUR 118,750,000
USD 50,000,000
5 years
USD 50,000,000
EUR 185,000,000
5-12 years
EUR 185,000,000
USD 250,000,000
5-14 years
USD 250,000,000
USD 555,000,000
5-15 years
USD 555,000,000
Amount
USD 75,000,000
Other:
The Bank has obtained funds with an amount of USD 500 million and 10 years maturity, through securitization of future
flow transactions.
61
d.
Information on Debt Securities Issued (Net):
Current Period
TL
Prior Period
FC
TL
FC
Bills
4,856,590
2,317,922
4,561,693
2,339,748
Bonds
1,193,731
11,484,755
1,584,575
10,111,076
Total
6,050,321
13,802,677
6,146,268
12,450,824
e.
Information on Other Liabilities:
Other liabilities do not exceed 10% of the balance sheet total.
f.
Information on Lease Payables (Net):
The group does not have any liabilities resulting from finance lease transactions.
g.
Information on Derivative Financial Liabilities Held for Risk Management:
The Group does not have any derivative financial liabilities held for risk management purposes.
h.
Information on Provisions:
h.1.
Information on general loan loss provisions:
General Loan Loss Provisions(1)
Provision for Group I Loans and Receivables
Additional Provision for Loans and Receivables with Extended Maturities
Provision for Group II Loans and Receivables
Additional Provision for Loans and Receivables with Extended Maturities
Provision for Non-cash Loans
Other
Current Period
2,672,715
2,256,675
100,708
146,217
18,983
174,114
95,709
Prior Period
2,479,770
2,111,676
115,516
130,332
19,541
153,972
83,790
Calculated considering temporary” 8th Substance of the Regulation on Procedures and Principles for Determination of Qualifications of Loans and
Other Receivables by Banks and Provisions to Be Set Aside”.
(1)
h.2.
Reserves for employee benefits:
According to the related regulation and the collective bargaining agreements, the Parent Bank is obliged to pay employee
termination benefits to employees who retire, die, quit for their military service obligations, who have been dismissed as
defined in the related regulation or to the female employees who have voluntarily quit within one year after the date of their
marriage. In accordance with the related regulations, the amount of employee termination benefits is TL 3,541.37 (full TL
amount as at 31 March 2015), which is one month salary for each service year and cannot exceed the base salary ceiling
for employee termination benefits. A provision for severance pay to allocate that employees need to be paid upon retirement
is TL 501,895 as at 31 March 2015 (31 December 2014: TL 482,111).
In addition to the employee termination benefits, the Parent Bank and consolidated Group companies also allocate provisions
for the unused vacation pay liability. As of 31 March 2015, provision for unused vacation pay is amounting to TL 50,148
(31 December 2014: TL 41,865).
h.3.
Provisions for exchange losses in the principal amount of foreign currency indexed loans:
Since foreign currency indexed loans are followed based on the rates on the lending date, the Parent Bank incurs a loss if
the exchange rates decrease and makes profit if the exchange rate increases. As of 31 March 2015, provision amount for
the currency evaluation losses in the principal amount of foreign currency indexed loans is TL 21,740 and this amount is
offset against foreign currency indexed loan balance in the financial statements.
h.4.
Specific provisions for non-cash loans, which are not indemnified and not converted into cash:
As at 31 March 2015, TL 68,615 provision (31 December 2014: TL 66,882) is allocated for the non-cash loans of companies
whose loans are followed under non-performing loans accounts.
62
h.5.
Information on other provisions:
h.5.1.
Provisions for potential risks:
The Parent Bank management provided a general provision for the possible result of the negative circumstances which may
arise from any changes in economy or market conditions amounting TL 1,000,000 of this amount was had been recognized
as expense in the prior periods.
h.5.2. Liabilities arising from retirement benefits:
Liabilities of pension funds founded as per the Social Security Institution:
Within the scope of the explanations given in Section Three Note XX.II, in the actuarial report which was prepared as of
31 December 2014 for Türkiye İş Bankası A.Ş. Emekli Sandığı Vakfı (İşbank Pension Fund), of which each Bank employee
is a member, and which has been established according to the provisional Article 20 of the Social Security Act numbered
506, the amount of actuarial and technical deficit stands at TL 1,898,407. According to the actuarial report as at 31
December 2014 of Milli Reasürans T.A.Ş., besides the Parent Bank, the amount of actuarial and technical deficit was
determined to be TL 28,331. The provision, which is equal to the amount of actuarial and technical deficit, is reflected in
the financial statements in the above mentioned period. This provision is unchanged in current period financial statements.
The above mentioned actuarial audit, which was made in accordance with the principles of the related law, measures the
cash value of the liability as of 31 December 2014, in other words, it measures the amount to be paid to the Social Security
Institution by the Parent Bank. Actuarial assumptions used in the calculation are given below.
- 9.8% technical deficit interest rate is used.
- 34.5 % total premium rate is used.
- CSO 1980 woman/man mortality tables are used.
Below table shows the cash values of premium and salary payments of the Parent Bank as of 31 December 2014, taking
the health expenses within the Social Security Institution limits into account.
Net Present Value of Total Liabilities Other Than Health
Net Present Value of Long Term Insurance Line Premiums
Net Present Value of Total Liabilities Other Than Health
Current Period
(5,397,570)
2,433,204
(2,964,366)
Prior Period
(4,900,737)
2,173,772
(2,726,965)
(726,581)
1,382,502
655,921
(660,534)
1,235,098
574,564
410,038
(1,898,407)
376,562
(1,775,839)
Net Present Value of Health Liabilities
Net Present Value of Health Premiums
Net Present Value of Health Liabilities
Pension Fund Assets
Amount of Actuarial and Technical Deficit
The assets of the pension fund are as follows.
Cash and Cash Equivalents
Securities Portfolio
Other
Total
Current Period
243,003
116,934
50,101
410,038
Prior Period
253,716
96,722
26,124
376,562
On the other hand, after the transfer, the currently paid health benefits will be revised within the framework of the Social
Security Institution legislation and related regulations.
h.5.3. Provision of credit cards and promotion of banking services applications: The Bank has recognized provisions
amounting to TL 68,231 for the amount which is recognized within the framework of credit card expenses of credit card
customers or promotions for banking services. (31 December 2014: TL 67,203)
h.5.4. As mentioned public disclosures of the Bank on 31 December 2012 and 19 December 2013; an inspection has
been made by the inspectors of Tax Inspection Board to "Türkiye İş Bankası A.Ş. Mensupları Munzam Sosyal Güvenlik
ve Yardımlaşma Sandığı Vakfı" ("İşbank Supplementary Pension Fund"), which was founded as per the provisions of the
Turkish Commercial and Civil Codes, regarding the payments that fulfill İşbank's liabilities within the framework of the
Articles of Foundation of the Pension Fund and the relevant legislation.
As a result of this investigation, tax audit reports were prepared for the years 2007, 2008, 2009, 2010, 2011 claiming that
the aforementioned liabilities should be taxed in terms of wage base, thus, they should be subject to withholding tax and
63
stamp duty. According to this report, the total amount of tax and penalties notified to Bank was TL 74,353 for 2007 and
2008; and TL 152,383 for 2009, 2010 and 2011 and it was stated that the Bank applied to tax courts to cancel these tax
notifications and some of the court decisions were determined in favor of the Bank and some others were determined against
the Bank.
In this context, for the finalized decisions of Regional Administrative Courts related to the years 2007 and 2008 against the
Bank, the Bank applied to the Constitutional Court. As considering one of the Bank’s applications, the Constitutional Court
made its decision court file numbered 2014/6192 amounting to TL 39,378.20 (full amount). The court decision dated 12
November 2014 appeared in the official gazette dated 21 February 2015 and numbered 29274. According to this decision,
there is no predictability in legal conformity for taxing the Bank's contributions to the Pension Fund in terms of wage base
and for this reason it was accepted that property right of the Bank has been violated according to the 35th article of
Constitution. Finally the Court decided that the amount of tax, penalties and default interest which was paid by the Bank
should be paid back to the Bank as for compensation with its legal interest.
Besides of the Bank, an inspection was conducted by Tax Audit Committee Inspectors regarding to the contribution
obligations mentioned above for the period 2007-2011” on Munzam Sosyal Güvenlik ve Yardımlaşma Sandığı Vakfı
Mensupları which is founded according to Turkish Commercial Law and Civil Law, owned by “Türkiye Sınai Kalkınma
Bankası A.Ş”, “Milli Reasürans T.A.Ş”, and Anadolu Anonim Türk Sigorta Şirketi. As a result of the issued report that
companies a total of TL 33 million (exact amount) tax penalty notices were notified. Assessments made on the subject by
the company’s application in accordance with the legislation, which was suspended for Tax Administration concluded that
the lack of legal basis of assessment and said assessment were filed in court against the various tax. A number of cases
concluded in favor of the Bank, another part of lawsuits concluded against the Bank but portion of the case has not been
concluded yet.
According to the decision of the Constitutional Court, it is expected that the cases related to the periods 2007, 2008, 2009,
2010 and 2011 will conclude in favor of the Bank. In this context, the provisions amounting to TL 216,819 which had been
allocated for the mentioned periods, reversed. The path to be followed for other provisions, allocated for the same reason
within the scope of accounting standards for the year 2012 and subsequent periods, will be determined depending on the
process. Within the scope of these developments, the Bank recognized provisions amounting to TL 6,564 as at 31 March
2015 (31 March 2014: TL 25,018).
h.5.5. Except the provisions which are stated above, other provisions contain provision for expenses, provisions for
ongoing lawsuit and other provisions set aside for miscellaneous reasons.
i.
Information on Tax Liability:
i.1.
Information on current tax liability:
i.1.1.
Information on tax provision:
Explanations in relation to taxation and tax calculations were stated in Section Three Note XXI. The remaining corporate
tax liability of the Parent Bank and the consolidated companies after the deduction of the temporary tax amount stands at
TL 84,601 as at 31 March 2015.
i.1.2.
Information on taxes payable:
Current Period
Corporate Tax Payable
Tax on Securities Income
Tax on Real Estate Income
Banking Insurance Transaction Tax
Foreign Exchange Transaction Tax
Prior Period
84,601
436,879
173,922
125,373
2,820
3,284
105,489
119,006
56
48
9,074
7,126
Other
76,460
47,709
Total
452,422
739,425
Value Added Tax Payable
64
i.1.3.
Information on premiums:
Current Period
Prior Period
Social Security Premiums – Employees
1,790
1,451
Social Security Premiums – Employer
2,036
1,724
1,955
1,626
Bank Pension Fund Premiums – Employees
Bank Pension Fund Premiums – Employer
Pension Fund Membership Fees and Provisions-Employees
Pension Fund Membership Fees and Provisions-Employer
10
9
Unemployment Insurance – Employees
1,245
1,173
Unemployment Insurance – Employer
2,467
2,330
Other
Total
i.2.
617
493
10,120
8,806
Information on deferred tax liabilities:
The Parent Bank and the consolidated Group companies have TL 1,882 deferred tax liability as of 31 March 2015. The related
deferred tax liability is calculated over the temporary differences between the book values of assets and liabilities in the
records and their tax base values calculated according to tax.
Deferred Tax Liability:
Current Period
Prior Period
Tangible Assets Tax Base Differences
1,882
1,882
Net Deferred Tax Liability
1,882
1,882
j.
Information on consolidated shareholders’ equity:
j.1.
Presentation of paid-in capital:
Common shares
Preferred shares
Total
Current Period
4,499,970
30
Prior Period
4,499,970
30
4,500,000
4,500,000
j.2.
Explanation as to whether the registered share capital system ceiling is applicable at bank, if so, the amount of
registered share capital:
Capital System
Registered Capital System
Paid-in Capital
4,500,000
j.3.
The capital increase made in current period: None.
j.4.
Capital increase through transfer from capital reserves during the current period: None.
Ceiling
10,000,000
j.5.
Significant commitments of the Parent Bank related to capital expenditures within the last year and the following
quarter, the general purpose thereof, and the estimation of funds required for them: There are no capital commitments.
j.6.
Information regarding the shares of the company acquired; Parent bank and group companies did not acquired
their own share.
j.7.
Previous periods’ indicators related to income, profitability and liquidity, and the estimated effects of forecasts,
which are to be made by taking into consideration the uncertainties of these indicators, on the Group’s equity: The Parent
Bank’s and the Group companies’ balance sheets are managed in a prudent way to ensure that the effect of risks arising
from interest rates, exchange rates and loans is at the lowest level.
65
j.8.
Privileges Granted to Shares:
Turkish Commercial Law and related registration are kept conditionally;
Group (A) shares each with a nominal value of 1 Kuruş have the privileges of;
- receiving 20 times the number of shares in the distribution of bonus shares issued from conversion of
extraordinary and revaluation reserves generated in accordance with the relevant laws (Article 18 of the
Articles of Incorporation),
- exercising the preference rights as 20 times (Article 19 of the Articles of Incorporation), and
Despite having a lower nominal value, Group (B) shares, each with a nominal value of 1 Kuruş, have the same rights with
the Group (C) shares having a nominal value of 4 Kuruş each. Furthermore, Group (A) and (B) shares, each with a nominal
value of 1 Kuruş are granted privileges in distribution of profits pursuant to Article 58 of the Articles of Incorporation.
j.9.
Information on marketable securities value increase fund:
Current Period
TL
Associates, Subsidiaries and Jointly
Controlled Entities
Valuation Difference
Foreign Exchange Differences
Valuation Difference
Deferred Tax Effect on Valuation
Foreign Exchange Differences
Total
k.
Prior Period
FC
TL
FC
2,020,491
2,493,159
2,020,491
2,493,159
57,805
77,255
(19,450)
345,589
343,104
2,485
614,123
773,208
(159,085)
331,840
326,983
4,857
2,078,296
345,589
3,107,282
331,840
Explanations on Non-controlling Interest:
Current Period
Prior Period
Paid-in Capital
2,178,833
2,178,829
Share Premium
5,405
5,405
Marketable Securities Revaluation Reserve
Bonus Shares Obtained from Associates, Subsidiaries and Jointly Controlled
Other Reserves
240,931
283,476
1,179
1,179
(126)
(126)
Legal Reserves
248,676
222,904
52,332
47,837
314,862
316,281
Statutory Reserves
Extraordinary Reserves
Other Profit Reserves
Prior Years’ Profit / Loss
Current Year Profit/ Loss
(1)
(1)
(2,727)
(1,704)
252,730
27,237
141,358
424,829
3,433,453
3,506,147
Difference between effective and direct shareholding rate was TL 41,314 in the current period (31 December 2014: TL 44,621).
66
l.
Information on Dividend Distribution:
At the Parent Bank’s Ordinary General Meeting, held on 31 March 2015, it was decided to distribute 2014 net income of
TL 3,382,442 as follows;
- It was decided to transfer to “Capital Reserves” TL 3,391 profit, which was gained on the sale of associates, subsidiaries
and real estates, and which was not subject to dividend distribution, in order to use in capital increase,
- It was decided to transfer to distribution amount is based on the addition of the amount allocated for dividends distributed
to employees during the period of TL 129,000 within the scope of “TAS 19-Employee Benefits,
- It was decided to allocate TL 3,508,051 of the profit, which was subject to distribution as follows;
- TL 699,030 to the Group A, B and C shares in cash,
- TL 4 to founder shares in cash,
- TL141,977 to the members of the Board, the CEO and the staff as cash dividend,
- TL 2,667,040 to be kept as legal and extraordinary reserves.
On 31 March 2015 TL 2,667,040 was transferred to reserves account and the cash dividend distribution was initiated on 1
April 2015.
67
III.
DISCLOSURES AND FOOTNOTES ON CONSOLIDATED OFF-BALANCE SHEET ITEMS
a.
Explanations to Liabilities Related to Off-Balance Sheet Items:
a.1.
Types and amounts of irrevocable loan commitments:
Commitment for customer credit card limits amounts to TL 21,125,449 and commitment to pay for cheque leaves amounts
to TL 6,109,390. The amount of commitment for the forward purchase of assets is TL 2,771,528 and for the forward sale
of assets is TL 2,757,249.
a.2.
The structure and amount of probable losses and commitments resulting from off-balance sheet items, including
those below:
There are no probable losses related to off-balance sheet items. Commitments are shown in the table of “Off-Balance Sheet
Items”.
a.3.
Guarantees, bank acceptances, collaterals that qualify as financial guarantees, and non-cash loans including other
letters of credit:
Current Period
Prior Period
Bank Acceptances
1,658,621
1,229,731
Letters of Credit
9,445,986
7,763,406
Other Guarantees
1,074,582
1,020,610
12,179,189
10,013,747
Total
a.4.
Certain guarantee, provisional guarantees, suretyships and similar transactions:
Current Period
Letters of Tentative Guarantees
Prior Period
858,979
930,188
24,900,433
24,059,778
Letters of Advance Guarantees
5,296,855
4,670,054
Letters of Guarantee Given to Customs Offices
3,390,749
3,182,599
Other Letters of Guarantee
2,257,866
1,806,947
36,704,882
34,649,566
Letters of Certain Guarantees
Total
a.5.
Total Non-cash Loans:
Current Period
Non-cash Loans against Cash Risks
With Original Maturity of 1 Year or Less
With Original Maturity More Than 1 Year
Prior Period
2,500,316
2,042,714
651,185
552,349
1,849,131
1,490,365
Other Non-cash Loans
46,383,755
42,620,599
Total
48,884,071
44,663,313
68
a.6.
Non-cash Loans classified under Group I and Group II:
Group I
TL
Group II
FC
TL
FC
Non-cash Loans
18,769,404
29,831,328
151,930
131,409
Letters of Guarantee
18,513,425
17,914,152
151,930
125,375
3,735
1,653,122
1,764
9,441,716
4,270
Bank Acceptances
Letters of Credit
Endorsements
Underwriting Commitments of the Securities Issued
Factoring Related Guarantees
Other Guaranties and Warranties
b.
83,442
7,742
168,802
814,596
Explanations Related to Contingencies and Commitments:
The balance of the “Other Irrevocable Commitments” account, which comprised the letters of guarantees, guarantees and
commitments submitted by the Group pursuant to its own internal affairs, and guarantees given to third parties by other
institutions in favor of the Parent Bank and the commitments due to housing loans extended within the scope of unfinished
house projects followed, amounts to TL 6,494,901.
The cheques given to customers is presented under off balance sheet commitments, as per the related regulations is
amounting to TL 6,109,390, In case the cheques presented for payment to beneficiaries are not covered, the Parent Bank
will be obliged to pay the uncovered amount up to TL 700 (full amount expressed) for the cheques that are subject to the
Law numbered 3167 on “the Regulation of Payments by Cheque and Protection of Cheque Holders”, and up to TL 1,200
(full amount) for the cheques that are subject to the “Cheque Law” numbered 5941, The uncollected amount will be
followed under “Indemnified Non-Cash Loans.
69
IV.
DISCLOSURES AND FOOTNOTES ON THE CONSOLIDATED INCOME STATEMENT
a.
Interest Income
a.1.
Information on interest income on loans:
Current Period
TL
FC
Interest Income on Loans (1)
Short-term Loans
Medium and Long-term Loans
Interest on Non-performing Loans
Premiums Received from State Resource Utilization Support Fund
Total
(1)
a.2.
Prior Period
TL
FC
891,507
1,956,508
42,515
79,109
779,289
107
835,874
1,514,033
35,982
79,104
627,275
1,395
2,890,530
858,505
2,385,889
707,774
Includes fee and commission income on cash loans.
Information on interest income on banks:
The Central Bank of Turkey (1)
Domestic Banks
Foreign Banks
Foreign Head Offices and Branches
Total
Current Period
TL
FC
7,844
51,716
15,506
1,056
787
60,616
Prior Period
TL
16,293
FC
17,186
1,013
22,691
1,604
18,199
24,295
(1)
The amount is consist of interest income from Central Bank of Turkey which is given for TL reserves, in accordance with the communique provisions
on Uniform Chart of Accounts and prospectus, reclassified in the "Interest Received from Banks" account.
a.3.
Information on interest income from securities:
Current Period
TL
Interest Income on Financial Assets Held for Trading
Interest Income on Financial Assets at Fair Value through
Profit and Loss
Interest Income on Financial Assets Available for Sale
Total
a.4.
Prior Period
FC
TL
FC
20,620
117
36,115
106
783,827
140,101
622,154
93,393
27,377
146
273,787
32
831,824
140,364
932,056
93,531
Information on interest income received from associates and subsidiaries:
Current Period
b.
Interest Expense
b.1.
Information on interest expense from funds borrowed:
Banks
Domestic Banks
Foreign Banks
Foreign Head Offices and Branches
Other Institutions
Total (1)
Prior Period
100
Interest Income from Associates and Subsidiaries
Current Period
TL
FC
112,476
91,763
77
45,738
5,696
66,738
85,990
112,476
60,276
152,039
621
Prior Period
TL
FC
73,647
59,406
37,355
36,292
4,589
54,817
73,647
38,056
97,462
(1)
Includes fee and commission expenses from cash loans.
70
b.2.
Information on interest paid to associates and subsidiaries:
Current Period
b.3.
Prior Period
4,512
Interest Paid to Associates and Subsidiaries
3,784
Information on interest paid on marketable securities issued:
Current Period
TL
FC
124,003
210,686
Interest on Securities Issued
b.4.
Prior Period
TL
116,927
FC
105,611
Information on Interest Expense on Deposits According to Maturity Structure:
Demand
Deposits
Up to One
Month
Time Deposits
Up to
Up to
Over One Accumulated
Six
One Year
Year
Deposits
Months
Up to
Three
Months
Total
TL
Bank Deposits
17,418
178
172
40,670
812,688
31,622
7,749
80,435
Savings Deposits
1
2
757
931
64
6
1
46,722
118,619
2,980
1,172
400
169,894
11
4,588
80,472
24,053
81
24
109,229
15
155,404
1,030,128
58,897
9,180
7,988
14
1,261,626
532
21,310
132,170
14,705
5,782
33,080
1
207,580
109
4,852
4,221
427
333
1,914
11,856
496
40
537
Commercial Deposits
Other Institutions
Deposits
Deposits with 7 Days
Notice
Total
FC
Foreign Currency
Deposits
Bank Deposits
Deposits with 7 Days
Notice
Precious Metals
Deposits
Total
Grand Total
c.
62,667
1
7,564
14
900,308
1,760
641
26,162
136,392
15,132
6,611
35,034
1
219,973
656
181,566
1,166,520
74,029
15,791
43,022
15
1,481,599
Information on trading income/losses (Net):
Income
Securities Trading Gains
Gains on Derivative Financial Instruments
Foreign Exchange Gains
Losses (-)
Securities Trading Losses
Losses on Derivative Financial Instruments
Foreign Exchange Losses
Trading Income/Losses (Net)
Current Period
33,622,189
698,657
2,710,642
30,212,890
33,443,302
579,103
2,905,441
29,958,758
178,887
Prior Period
31,033,673
70,425
2,851,374
28,111,874
30,864,566
64,102
3,364,278
27,436,186
169,107
Income arising from foreign currency changes related to derivative transactions amounting TL 1,895,707, and the losses amounting TL 421,549 and the
amount of net loss is TL 1,474,158 (31 March 2014 profit: TL 2,183,061; loss: TL 2,732,946).
71
d.
Information on other operating income:
As at reporting period, TL 925,975 of other operating income sources from inclusion and classification of operations of
insurance and reinsurance companies; 91% of which is from insurance premiums (31 March 2014: TL 824,563, 93%).
Other operating income consist of provision reversals related to “Türkiye İş Bankası A.Ş. Mensupları Munzam Sosyal
Güvenlik ve Yardımlaşma Sandığı Vakfı” which has been mentioned in Section Five II.h.5.4, collection or reversals of
prior year provisions which have been recognized mainly on non-performing loan losses. The remaining portion includes
banking services related income derived from customers and revenues from asset sales.
e.
Information on provision for impairment on loans and other receivables:
Current Period
Specific Provisions for Loans and Other Receivables
Group III Loans and Receivables
Prior Period
424,409
293,088
133,159
89,796
Group IV Loans and Receivables
97,623
74,719
Group V Loans and Receivables
193,627
128,573
General Loan Provision Expenses(1)
219,809
Provision Expenses for Potential Risks
Impairment Losses on Marketable Securities
Financial Assets at Fair Value through Profit and Loss
Impairment Losses on Investments in Associates, Subsidiaries, Jointly
Controlled Entities and Investments Held to Maturity
Associates
77,503
200,000
9,788
15,857
5,723
11,597
4,065
4,260
291
291
Subsidiaries
Jointly Controlled Entities
Other
33,889
73,465
Total
687,895
660,204
(1)
General provisions for current period were allocated with the scope temporary 8 substance of the Determining the Nature of Loans and
Receivables and Principles and Procedures on the Allocation of Loan and Receivable Provisions,
72
f.
Other operating expenses:
Current Period
Personnel
Expenses(1)
Prior Period
750,433
655,650
19,870
18,163
65,291
64,650
43,912
33,495
Impairment Losses on Assets to be Disposed
1,401
1,004
Depreciation Expenses of Assets to be Disposed
1,822
2,819
445,102
432,779
72,810
61,029
8,794
7,646
Reserve for Employee Termination Benefits
Bank Pension Fund Deficit Provisions
Impairment Losses on Tangible Assets
Depreciation Expenses of Tangible Assets
Impairment Losses on Intangible Assets
Impairment Losses on Goodwill
Amortization Expenses of Intangible Assets
Impairment Losses on Investments Accounted Under Equity Method
Impairment Losses on Assets Held for Sale and Subject to Discontinued
Operations
Other Operating Expenses
Operational Lease Related Expenses
Repair and Maintenance Expenses
Advertisement Expenses
Other Expenses
Loss on Sale of Assets
Other
(2)
Total
39,879
35,895
323,619
328,209
1,017
133,032
1,075,014
828,021
2,403,862
2,169,613
According to “TAS 19-Employee Benefits”, it includes provision for the payments that will be made to employees such as dividend distribution etc,
In the current period TL 60,533 of the related item is due to the expenses incurred as a result of the return of the loan commission income recognised in
prior years TL 62,446 is due the expenses related to the periodic savings deposits premiums. Saving deposit insurance premium expense is TL 62,518 for
the prior period.
(1)
(2)
On the table above, TL 795,212 of other operating expense includes insurance and reinsurance companies’ expenses which
are related with their operations, the paid claims comprise almost this entire amount both in current and prior period. (31
March 2014: TL 620,928)
g.
Information on provision for taxes including taxes from continuing and discontinued operations
As at 31 March 2015 the amount of the Group’s tax provision is TL 254,095 and the amount consists of current tax expense
that is amounting to TL 90,027 and consists of deferred tax income amounting TL 164,068.
h.
Information on net period profit/loss:
h.1.
Income and expense resulting from ordinary banking activities: There is no specific issue required to be disclosed
for the Group’s performance for the period between 1 January 2015 – 31 March 2015.
h.2.
Effects of changes in accounting estimates on the current and future periods’ profit/loss: There is no issue to be
disclosed
h.3.
“The Other’’ item which is located at the bottom “Fees and Commissions Received” in the income statement
consist of various fees and commissions received from transactions such as credit card transactions, capital market
transactions and insurance-reinsurance transactions.
h.4.
Other items do not exceed 10% of the total amount of the income statement.
i.
Net profit / loss of non-controlling Interest:
Net Profit / Loss of Non-controlling Interest
Current Period
100,044
Prior Period
74,330
73
DISCLOSURES AND FOOTNOTES ON THE GROUP’S RISK GROUP
V.
a.
Information on the volume of transactions relating to the Group’s risk group, incomplete loan and deposit
transactions and period’s profit and loss:
Information on loans held by the Group’s risk group:
a.1.
Current Period:
Group’s Risk Group
Loans and other receivables
Balance at the beginning of
the period
Interest and commission income
received
Investments in Associates,
Subsidiaries and Jointly
Controlled Entities (Joint
Ventures)
Cash
Non-Cash
Other Real Persons and
Direct and Indirect
Corporate Bodies that have
Shareholders of the Bank been Included in the Risk
Group
Cash
Non-Cash
Cash
Non-Cash
1,228
1,490,797
443,998
237,884
2,766
1,447,253
447,939
215,662
100
35
12,342
309
Prior Period:
Direct and Indirect
Controlled Entities (Joint Shareholders of the Bank been Included in the Risk
Ventures)
Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Loans and other receivables
Balance at the beginning of the period
Interest and commission income received
a.2.
15,375
1,426,296
553,135
246,217
1,228
1,490,797
443,998
237,884
608
130
8,387
344
Information on deposits held by the Group’s risk group:
Controlled Entities (Joint
Ventures)
Current
Prior
Period
Period
been Included in the Risk
Group
Current
Prior Period
Prior Period
Period
Direct and Indirect
Shareholders
of the Bank
Current
Period
Deposits
Balance at the beginning of the period
523,900
391,051
206,316
352,420
2,469,021
1,625,580
Interest expense on deposits
618,214
523,900
207,224
206,316
2,577,600
2,469,021
4,349
3,748
5,181
6,928
16,664
14,164
74
a.3.
Information on forward and option and other similar agreements made with the Group’s risk group:
Investments in
Associates, Subsidiaries
Direct and Indirect
Corporate Bodies that
and Jointly Controlled Shareholders of the Bank have been Included in the
Risk Group
Current
Current
Current
Prior Period
Prior Period
Prior Period
Period
Period
Period
Transactions at Fair Value Through Profit and Loss
Beginning of the period
End of the period
75,919
Total Profit/ Loss
(292)
Transactions for hedging purposes
Beginning of the period
End of the period
Total Profit/ Loss
b.
Disclosures for the Group’s risk group:
b.1.
The relations of the Group with corporations in its risk group and under its control regardless of any transactions
between the parties:
All types of corporate and retail banking services are provided to these corporations in line with the articles of Banking
Law.
b.2.
The type and amount of transaction carried out, and its ratio to the overall transaction volume, values of principal
items and their ratios to overall items, pricing policy and other items in addition to the structure of the relationship:
The transactions carried out are mainly loan and deposit transactions. The ratio of loans extended to the risk group to the
overall loans is 0.25%, while the ratio to the overall assets is 0.15% the ratio of deposits of the risk group corporations to
the overall deposits is 2.34%, while the ratio to overall liabilities is 1.16%. The same pricing policy with third parties is
used for the financial services provided to companies in the Parent Bank’s risk group.
b.3.
Purchase and sale of real estates, other assets and services, agency agreements, finance lease contracts, transfer of
information obtained through research and development, license agreements, funding (including loans and provision of
support as cash capital or capital-in-kind), guarantees and collaterals, and management agreements:
The Parent Bank’s branches act as agents for Anadolu Anonim Türk Sigorta Şirketi and Anadolu Hayat Emeklilik A.Ş.
Furthermore, through its branches the Parent Bank also acts as agent for İş Yatırım Menkul Değerler A.Ş. Of the 26 mutual
funds, which were founded by the Parent Bank are managed by İş Portföy Yönetimi A.Ş. 22 of the mutual funds, which
were founded by Anadolu Hayat Emeklilik A,Ş. are managed by İş Portföy Yönetimi A.Ş.
If requested, cash and non-cash loan requirements of corporations within the risk group are met in accordance with the
limits imposed by the Banking Law and the prevailing market conditions.
c.
Total salaries and similar benefits paid to the key management personnel
In the current period, the net payment provided to the key management of Group amounts TL 20,105 (31 March 2014: TL
17,758).
75
VI. SUBSEQUENT EVENTS
1) Within the framework of the resolution of the Bank’s Board of Directors dated 28 August 2014 regarding issuance
of securities, the Bank has issued Bank bonds with a nominal value of TL 385,171 with a term of 122 days; bonds
with a nominal value of TL 542,871 with a term of 242 days and discounted bills with a nominal value of TL
87,463 with a term of 388 days on April 2015.
2) Within the framework of the resolution of the Bank’s Board of Directors dated 13 February 2015, regarding
issuance of securities abroad, the Bank issued securities with a total amount of USD 354 million on April 2015.
3) Within the framework of the Resolution of the Board of Directors of Türkiye İş Bankası A.Ş. dated 29 April 2015,
sale of shares of Avea, held by the Bank to Türk Telekomünikasyon A.Ş. for TL 610,075 was decided. Besides
the Parent Bank, sale of shares of Avea held by consolidated subsidiaries Anadolu Hayat A.Ş. and Anadolu
Anonim Türk Sigorta Şirketi, to same company, for TL 1,515 and TL 3,030 was decided within the framework of
the Resolution of the Board of Directors of Anadolu Hayat A.Ş. and Anadolu Anonim Türk Sigorta Şirketi. The
sale price will be received approximately in 4.5 years in 6 installments after the share transfer date. Share transfer
will be finalized after the legal authorizations.
4) Türkiye Sınai Kalkınma Bankası A.Ş.’s public offering with a nominal value of USD 350 million has been
completed, which is determined with maturity of 22 April 2020, five year maturity and semi-annual coupon
payment and fixed interest rate of 5.125%.
76
SECTION SIX: OTHER EXPLANATIONS
Explanation on the Group’s Credit Ratings:
I.
Rating
Outlook (1)
D+
Stable
Long-term Foreign Currency Deposit
Baa3
Negative
Long-term Local Currency Deposit
Baa3
Negative
Short-term Foreign Currency Deposit
P-3
-
Indicates that the Bank’s credibility is adequate.
The Highest rating depending on the country ceiling
for Turkey in this category.
Short-term Local Currency Deposit
P-3
-
Indicates that the Bank’s credibility is moderate.
BBB-
Stable
BBB-
Stable
F3
-
F3
-
AA+ (tur)
Stable
Viability Rating
bbb-
-
Shows high credit quality (national).
Shows that the Bank’s credibility is “good”. Basic
financial indicators are adequate.
Support Rating
3
-
There is a moderate probability of support.
Long-term Counterparty Credit Rating
BB+
Negative
Short-term Counterparty Credit Rating
B
-
Long-term National Scale Rating
trAA+
-
Short-term National Scale Rating
trA-1
-
Explanation
MOODY’S
Bank Financial Strength
Indicates that the Bank’s stand-alone financial strength
is adequate.
It is the highest rating in this category determined
ceiling of Turkey.
FITCH RATINGS
Long-term Foreign Currency Issuer
Default Rating
Long-term Local Currency Issuer Default
Rating
Short-term Foreign Currency Issuer
Default Rating
Short-term Local Currency Issuer Default
Rating
National Long-term Rating
At investment level. Shows that the Bank’s credibility
is good.
At investment level. Shows that the Bank’s credibility
is good.
At investment level. Shows that the capacity for timely
payment of financial commitments is adequate.
At investment level. Shows that the capacity for timely
payment of financial commitments is adequate.
STANDARD & POOR'S
Same as the FC country rating given for Turkey.
Indicates that it has the capacity to meet its
financial commitment on the obligation.
Indicates that its capacity to meet its financial
commitments on the obligation is strong.
It is the highest rating in this category and indicates
that the Bank’s capacity to pay its short-term debt is
higher than the other institutions in the country.
The dates below given are on which the Parent Bank’s credit ratings/outlook was last updated:
Moody's: 3 June 2014, Fitch Ratings: 24 June 2014, Standard & Poor's: 11 February 2014.
(1)
Outlook:
“Stable” indicates that the current rating will not be changed in the short term; “positive” indicates that the current rating is
very likely to be upgraded and “negative” indicates that the current rating is very likely to be downgraded.
77
Rating
Outlook
D+
Stable
Long-term Foreign Currency Issuer Rating
Baa3
Negative
Short-term Foreign Currency Issuer Rating
P-3
-
Long-term Local Currency Issuer Rating
Baa3
Negative
Short-term Local Currency Issuer Rating
P-3
-
Long-term Foreign Currency Issuer Default Rating
BBB-
Stable
Long-term Local Currency Issuer Default Rating
BBB
Stable
Short-term Foreign Currency Issuer Default Rating
F3
-
Short-term Local Currency Issuer Default Rating
F3
-
National Rating
AAA
Stable
Support Rating
2
-
Support Rating
BBB-
-
Senior Unsecured Loan Rating
BBB-
-
MOODY’S
Bank Financial Strength
FITCH RATINGS
The dates below given are on which the TSKB’s credit ratings were last updated:
Moody's: 5 June 2014, Fitch Ratings: 24 October 2014.
Rating
Outlook
Long-term Foreign Currency Issuer Default Rating
BBB-
Stable
Long-term Local Currency Issuer Default Rating
BBB-
Stable
Short-term Foreign Currency Issuer Default Rating
F3
-
Short-term Local Currency Issuer Default Rating
F3
-
AA+ (tur)
Stable
2
-
FITCH RATINGS
National Long-term Rating
Support Rating
The date below given is on which the credit ratings of İş Finansal Kiralama A.Ş. were last updated:
Fitch Ratings: 23 July 2014
78
SECTION SEVEN: EXPLANATIONS ON THE LIMITED REVIEW REPORT
I.
Explanations on the Limited Review Report:
The Parent Bank’s consolidated interim financial information and footnotes to be disclosed to public as of 31 March 2015
are reviewed by Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi (the Turkish member
firm of KPMG International Cooperative, a Swiss entity) and the Limited Review Report dated 11 May 2015, is presented
in the introduction of this report.
II.
Explanations and Footnotes of the Independent Auditors
There are no significant issues or necessary disclosures or notes in relation to the Group’s operations other than those
mentioned above.
79

201. I - İş Bankası

Transcription

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