Académique Documents
Professionnel Documents
Culture Documents
Associates, subsidiaries and special Purpose Entities whose financial statements have been consolidated in the consolidated financial report are as
follows:
Subsidiaries
Associates
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
Fsun Tmsava
Deputy Chairman of the Board of Directors
and Chairman of the Audit Committee
Mahmut Magemizolu
Deputy Chief Executive
In Charge of Financial Reporting
The authorized contact person for questions on this consolidated financial report:
Name Surname / Title: Sleyman H. zcan / Head of Investor Relations Division
Phone No : +90 212 316 16 02
Fax No
: +90 212 316 08 40
E-mail
: Suleyman.Ozcan@isbank.com.tr
investorrelations@isbank.com.tr
H. Ersin zince
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 Banks Risk Group
Explanations on the Chairmans, Directors, Auditors, Chief Executive Officers and Deputy Chief Executives Shares, if any, and the Areas of
their Responsibility at the
Bank
Information on the Parent Banks Qualified Shareholders
Summary Information on the Parent Banks Functions and Business Lines
Differences between the Communiqu 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.
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 Groups 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
13
14
15
16
16
16
17
18
18
18
18
19
19
19
20
20
21
21
21
22
24
25
25
25
25
25
26
31
32
34
37
38
39
40
40
42
44
60
69
71
74
77
SECTION VI
Other Explanations
I.
78
SECTION VII
Auditors Review Report
I.
II.
80
80
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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
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
Commercial Banking, Retail Banking and General Legal Counsellorship, Financial Analysis, Commercial and Corporate
Loans and Retail Loans Monitoring and Recovery Management
lhami Ko, participates in the meetings of the Risk Committee on a consolidated basis.
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
The Parent Banks shares attributable to the Directors and members of the Audit Committee, to the CEO and the Deputy Chief
Executives are of minor importance.
IV.
Name Surname/Company
T. Bankas A.. Mensuplar Munzam Sosyal Gvenlik ve
Yardmlama Sand Vakf (bank Members Supplementary
Pension Fund)
Cumhuriyet Halk Partisi Republican Peoples Party (Atatrks
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
In line with the relevant legislation and principles stated in the Articles of Incorporation of the Bank, the Parent Banks
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 Communiqu 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 Communiqu on Preparation of Consolidated Financial
Statements of Banks by applying Turkish Accounting Standards. There is not any difference between the related
Communiqu 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 ANONM TRK SGORTA RKET
- ANADOLU HAYAT EMEKLLK A..
- JSC BANK
- JSC BANK GEORGIA
- EFES VARLIK YNETM A..
- IS INVESTMENTS GULF LTD.
- FAKTORNG A..
- FNANSAL KRALAMA A..
- GAYRMENKUL YATIRIM ORTAKLII A..
- GRM SERMAYES YATIRIM ORTAKLII A..
- PORTFY YNETM A..
- YATIRIM MENKUL DEERLER A..
- I YATIRIM ORTAKLII A..
- BANK AG
- MAXIS INVESTMENTS LTD.
- MLL REASRANS T.A..
- TSKB GAYRMENKUL YATIRIM ORTAKLII A..
- TRKYE SINAI KALKINMA BANKASI A..
- YATIRIM FNANSMAN MENKUL DEERLER A..
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
Its associate;
- ARAP-TRK BANKASI A..
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 Trk Sigorta irketi
The Company was established in 1925 and operates in almost all non-life insurance service. The headquarter of the
Company is in Istanbul. The Companys shares are traded in the Borsa stanbul A..
Anadolu Hayat Emeklilik A..
The Company was founded in 1990 and its headquarter is in Istanbul. The companys 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 companys shares are traded in the Borsa Istanbul A..
JSC bank
The Bank, which was founded in 1998 and headquartered in Moscow, operating banking services by focusing on deposit,
loan and brokerage operations with its 10 branches in several regions of Russian Federation. The title of the Bank was
Closed Joint Stock Company and was changed to Joint Stock Company on 1 September 2015.
JSC bank Georgia
The Bank which was established in Georgia in the third quarter of 2015, is operating banking services mainly deposit,
loan and exchange transactions. As part of the organizational structure of Parent Bank in abroad, Batumi and Tbilisi
branches which were established in 2012 and 2014 respectively and proceed its operations as JSC Isbank Georgia.
Efes Varlk Ynetim A..
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 Companys headquarter is located
stanbul.
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.
Faktoring A..
The field of operation of the Company, which operates in the factoring sector since 1993, is domestic and foreign
factoring operations. The Companys headquarter is in Istanbul.
Finansal Kiralama A..
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 Companys shares are traded in the Borsa stanbul A..
Gayrimenkul Yatrm Ortakl A..
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 Companys shares are traded in the Borsa stanbul A.. since its establishment.
Giriim Sermayesi Yatrm Ortakl A..
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 companys shares are traded in the Borsa stanbul A.. since the year 2004.
Portfy Ynetimi A..
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.
3
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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.
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
V-I-p
CURRENT PERIOD
(30/09/2015)
FC
Total
TL
PRIOR PERIOD
(31/12/2014)
FC
Total
2,985,376
1,108,242
1,108,242
492,104
35,969
54,240
525,929
1,846,019
1,333,274
1,331,253
2,021
36,395,164
82,222
35,698,415
614,527
115,752,672
114,845,420
110,856
114,734,564
3,322,095
2,414,843
1,164,187
2,392,583
2,341,285
51,298
147,729
120,093
27,636
27,636
4,372,652
4,372,652
1,260
1,260
1,260
1,129,556
1,358,303
4,707
233,454
5,497,532
469,190
35,974
433,216
2,805,644
628,855
125,021
503,834
52,942
52,942
13,821,105
30,976,133
2,254,319
2,254,319
6,088
2,216,470
31,761
6,102,541
44,750
44,750
11,433,741
11,694
10,029,890
1,392,157
81,580,957
81,571,389
246,587
81,324,802
129,247
119,679
298,897
244,459
160,896
83,563
2,159,683
2,432,219
272,536
38,628
38,628
56,668
43,750
43,750
1,119
12,603
5,918
6,685
3,873
3,873
2,353,216
33,961,509
3,362,561
3,362,561
498,192
35,969
2,270,710
557,690
7,948,560
1,378,024
1,331,253
46,771
47,828,905
93,916
45,728,305
2,006,684
197,333,629
196,416,809
357,443
196,059,366
3,451,342
2,534,522
1,463,084
2,637,042
2,502,181
134,861
147,729
120,093
27,636
27,636
4,372,652
4,372,652
1,260
1,260
1,260
3,289,239
3,790,522
4,707
505,990
38,628
38,628
5,554,200
512,940
35,974
476,966
2,806,763
641,458
130,939
510,519
56,815
56,815
16,174,321
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
800,199
111,422
688,777
688,777
4,810,446
4,810,446
510
510
510
933,928
1,137,663
2,352
206,087
2,300,532
374,598
35,974
338,624
2,698,312
645,923
29,060
616,863
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
800,199
111,422
688,777
688,777
4,810,446
4,810,446
510
510
510
2,746,199
3,219,001
2,352
475,154
2,383,688
381,497
35,974
345,523
2,698,312
660,972
33,736
627,236
65,993
65,993
12,021,397
191,903,982
137,605,337
329,509,319
176,315,242
100,757,990
277,073,232
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
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
(30/09/2015)
FC
Total
PRIOR PERIOD
(31/12/2014)
FC
TL
Total
69,023,993
719,826
68,304,167
757,974
4,092,537
21,450,180
2,044,657
19,405,523
8,140,356
6,966,471
1,173,885
422
422
15,956,225
2,596,890
-
88,553,363
3,257,026
85,296,337
797,058
43,197,622
2,992,939
2,992,939
17,298,655
2,666,776
14,631,879
68,782
68,782
1,346,286
1,056,972
-
157,577,356
3,976,852
153,600,504
1,555,032
47,290,159
24,443,119
2,044,657
22,398,462
25,439,011
9,633,247
15,805,764
69,204
69,204
17,302,511
3,653,862
-
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
-
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
-
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
-
12,059,698
2,961,068
585,476
4,919,023
3,594,131
394,525
388,338
6,187
1,018,049
44,665
1,067
948,265
24,052
2,403
2,403
-
13,077,747
3,005,733
586,543
5,867,288
3,618,183
396,928
390,741
6,187
11,272,580
2,447,646
522,159
4,533,412
3,769,363
752,251
745,675
6,576
810,935
32,124
1,817
753,987
23,007
2,556
2,556
-
12,083,515
2,479,770
523,976
5,287,399
3,792,370
754,807
748,231
6,576
34,504,626
4,500,000
4,638,037
33,941
389,447
2,609,364
(1,179)
4,421,474
(221,710)
(363,046)
(367,228)
4,182
-
4,421,474
34,282,916
4,500,000
4,274,991
33,941
22,219
2,613,546
(1,179)
32,618,652
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
33,004,566
4,500,000
5,078,348
33,941
3,439,122
(1,179)
1,606,464
18,579,142
2,773,526
71,201
15,770,545
(36,130)
2,385,015
30,316
2,354,699
4,402,432
231,565
1,363
26,761
203,441
(86,223)
(92,314)
6,091
(4,006)
1,606,464
18,810,707
2,774,889
71,201
15,797,306
167,311
2,298,792
(61,998)
2,360,790
4,398,426
1,606,464
15,811,864
2,510,521
64,234
13,278,217
(41,108)
3,503,004
(54,198)
3,557,202
4,057,276
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
3,415,578
(108,141)
3,523,719
4,085,584
168,977,426
160,531,893
329,509,319
162,326,017
114,747,215
277,073,232
V-III
CURRENT PERIOD
(30/09/2015)
FC
Total
TL
PRIOR PERIOD
(31/12/2014)
FC
Total
106,306,293
20,944,307
20,595,689
777,969
3,715,150
16,102,570
8,604
8,604
6,845
6,845
35,899
297,270
43,451,835
43,031,466
291,203
10,079,494
5,939,254
21,078
21,141,118
97,092
11,056
5,451,171
420,369
420,369
41,910,151
41,910,151
4,205,426
1,742,382
2,463,044
31,236,615
6,976,092
20,795,683
1,732,420
1,732,420
6,455,324
3,959,922
2,399,512
0
0
40,561
55,329
6,180
4,988
1,192
6,606
354,233,165
176,084,297
37,703,577
21,225,348
2,542,897
7,572,303
11,110,148
1,962,542
422,435
1,540,107
13,547,291
10,206,047
3,341,244
10,860
957,536
18,784,639
6,783,131
4,707,892
516,223
1,559,016
12,001,508
12,001,508
119,596,081
4,860,000
4,860,000
114,736,081
9,554,109
5,107,801
4,446,308
87,547,154
34,256,479
16,371,307
18,459,684
18,459,684
11,336,337
4,225,262
5,472,837
819,034
819,034
160
10
5,866
1,110
4,756
6,292,615
223,790,180
282,390,590
58,647,884
41,821,037
3,320,866
11,287,453
27,212,718
1,971,146
422,435
1,548,711
13,554,136
10,206,047
3,348,089
46,759
1,254,806
62,236,474
49,814,597
4,999,095
10,595,717
5,939,254
21,078
21,141,118
97,092
11,056
7,010,187
12,421,877
12,421,877
161,506,232
4,860,000
4,860,000
156,646,232
13,759,535
6,850,183
6,909,352
118,783,769
41,232,571
37,166,990
20,192,104
20,192,104
17,791,661
8,185,184
7,872,349
819,034
819,034
40,721
55,339
12,046
6,098
5,948
6,299,221
578,023,345
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
125,685,782
105,535,070
14,224,895
2,794,085
14,110
2,541
1,253,071
1,862,010
228,547,383
11,847,360
6,006,710
50,117,725
145,785,544
14,790,044
-
13,855,307
652,674
4,533,459
7,352,612
4,282
1,312,280
209,934,873
18,853,649
13,656,395
13,145,624
102,969,594
61,309,611
-
139,541,089
106,187,744
18,758,354
10,146,697
18,392
2,541
2,565,351
1,862,010
438,482,256
30,701,009
19,663,105
63,263,349
248,755,138
76,099,655
-
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
-
460,539,458
399,874,477
860,413,935
396,568,239
272,855,572
669,423,811
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 Held for Trading
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 (XVXVI)
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 (XXXXI)
NET PERIOD PROFIT/LOSS (XVII+XXII)
Groups 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
PRIOR PERIOD
CURRENT PERIOD
(01/01-30/09/2014)
(01/07-30/09/2015)
CURRENT PERIOD
(01/01-30/09/2015)
PRIOR PERIOD
(01/07-30/09/2014)
15,690,686
13,062,474
5,630,655
4,527,060
12,066,157
9,708,033
4,347,529
3,402,809
39,788
19,932
191,117
132,360
66,391
50,905
58,824
13,231
32,116
5,455
3,040,512
3,002,721
1,058,064
995,964
54,638
92,421
15,025
12,106
2,938,379
2,258,648
1,035,044
813,466
47,495
651,652
7,995
170,392
195,135
132,096
71,425
50,063
99,153
74,033
35,198
21,864
8,293,303
4,651,195
862,991
1,598,430
1,150,664
30,023
7,397,383
1,295,406
2,090,152
287,841
1,802,311
794,746
5,779
788,967
256,686
(299,376)
372,640
(44,767)
(627,249)
4,330,588
12,980,687
1,770,282
7,856,929
3,353,476
8,671
3,362,147
655,620
100,029
555,591
2,706,527
2,706,527
2,360,790
345,737
6,850,771
4,263,321
550,571
1,225,035
756,982
54,862
6,211,703
1,113,435
1,762,402
210,239
1,552,163
648,967
6,136
642,831
291,988
394,123
262,413
(609,554)
741,264
3,721,146
11,732,395
1,299,713
6,938,937
3,493,745
12,280
3,506,025
773,635
855,400
(81,765)
2,732,390
2,732,390
2,452,355
280,035
2,894,654
1,580,728
305,837
555,416
446,999
5,674
2,736,001
426,479
722,430
101,094
621,336
295,951
1,822
294,129
248
(364,945)
21,431
343,495
(729,871)
1,544,986
4,342,769
511,035
2,827,884
1,003,850
2,295
1,006,145
193,295
(50,605)
243,900
812,850
812,850
655,086
157,764
2,273,941
1,381,683
196,161
397,492
285,481
13,124
2,253,119
383,616
602,608
71,432
531,176
218,992
2,048
216,944
68
253,299
59,266
(182,132)
376,165
1,143,036
4,033,138
306,863
2,376,535
1,349,740
3,642
1,353,382
294,733
165,002
129,731
1,058,649
1,058,649
977,716
80,933
0.020984380
0.021798275
0.005822870
0.008690635
TRKYE BANKASI A.. CONSOLIDATED STATEMENT OF INCOME AND EXPENSE ITEMS UNDER SHAREHOLDERS EQUITY
THOUSAND TL
INCOME AND EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS EQUITY
I.
ADDITIONS TO MARKETABLE SECURITIES VALUE INCREASE FUND FROM FINANCIAL ASSETS AVAILABLE FOR SALE
II.
III.
IV.
CURRENT PERIOD
PRIOR PERIOD
(01/01-30/09/2015)
(01/01-30/09/2014)
(3,368,290)
821,042
2,740,918
119,750
(45,727)
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
IX.
X.
(684,895)
994,077
XI.
2,360,790
2,452,355
11.1
(197,988)
(132,309)
11.2
The Portion of Derivative Financial Assets Held for Cash Flow Hedges Reclassified in and Transferred to Income Statement
11.3
The Portion of Derivative Financial Assets Held for Net Foreign Investment Hedges Reclassified in and Transferred to Income Statement
11.4
Other
2,558,778
2,584,664
XII.
1,675,895
3,446,432
(587,844)
348,892
410,571
(130,130)
10
I.
II.
2.1
2.2
III.
PRIOR PERIOD
(30/09/2014)
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)
Paid-in Capital
Inflation Adjustment
Share
Premium
Share Cancellation
Profits
Legal
Reserves
Statutory
Reserves
Extraordinary
Reserves
Other
Reserves
4,500,000
1,615,938
33,940
2,286,486
59,539
10,812,744
152,149
4,500,000
1,615,938
33,940
2,286,486
59,539
10,812,744
152,149
Net Current
Period Profit/(Loss)
Prior Period
Profit / (Loss)
2,621,162
540,777
540,777
3,161,939
IV.
V.
VI.
6.1
6.2
VII.
VIII.
IX.
I.
680,397
(1,179)
680,397
(1,179)
Hedge
Reserves
Total Shareholders'Equity
Except Non-controlling Interest
1,039,804
(45,727)
354
1,010
(1,027)
2,452,355
4,500,000
1,615,938
33,941
CURRENT PERIOD
(30/09/2015)
Beginning Balance
4,500,000
1,615,938
33,941
Marketable Securities
Value Increase Fund
223,681
4,695
2,487,698
(3,269,053)
(649,410)
(2,619,643)
223,681
4,695
2,391,267
96,431
2,510,521
64,234
13,301,452
106,422
2,511,627
64,234
13,300,346
39,375
2,452,355
(108,141)
1,720,201
3,415,578
3,439,122
(1,179)
(1,179)
(3,418,191)
2,613,546
118,462
1,288
2,360,790
4,500,000
1,615,938
33,941
263,262
6,967
2,496,960
263,262
6,967
2,366,336
130,624
2,774,889
71,201
15,797,306
(3,477,576)
(841,011)
(2,636,565)
157,837
2,360,790
(61,998)
22,219
2,613,546
(1,179)
Non-controlling
Interest
Total Shreholder's
Equity
22,761,176
540,777
3,133,450
462,947
25,894,626
1,003,724
540,777
23,301,953
462,947
3,596,397
1,003,724
26,898,350
1,039,804
22,173
1,061,977
(45,727)
(689)
(46,416)
338
2,452,355
(552,979)
(649,410)
96,431
(4,580)
280,035
(100,947)
(101,516)
569
(4,242)
2,732,390
(653,926)
(750,926)
97,000
26,195,744
3,792,389
29,988,133
28,918,982
4,085,584
33,004,566
(3,418,191)
(118,791)
(3,536,982)
2,613,546
216,340
2,829,886
119,750
(1,358)
118,392
2,360,790
(710,387)
(841,011)
130,624
345,737
(129,086)
(129,732)
646
2,706,527
(839,473)
(970,743)
131,270
29,884,490
4,398,426
34,282,916
11
A.
1.1
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
8,850,877
3,351,488
Interest Received
Interest Paid
Dividend Received
Fees and Commissions Received
Other Income
Collections from Previously Written Off Loans and Other Receivables
Cash Payments to Personnel and Service Suppliers
Taxes Paid
Other
15,369,941
(7,876,195)
90,979
2,090,152
4,216,321
781,547
(3,731,683)
(697,947)
(1,392,238)
11,943,351
(6,647,972)
71,859
1,762,402
3,374,035
716,478
(3,455,101)
(991,824)
(3,421,740)
1.2
(4,709,641)
(8,262,188)
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
77,245
(9,606,594)
(15,771,642)
(3,383,101)
330,636
10,693,520
8,240,736
4,709,559
83,372
(4,116,181)
(16,771,774)
(1,267,120)
1,939,250
6,428,891
2,700,040
2,741,334
I.
4,141,236
(4,910,700)
B.
II.
(5,210,320)
(481,785)
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
(750)
23,195
(696,750)
316,256
(14,725,940)
9,039,432
(176,390)
1,292,043
(281,416)
(5,715)
20,126
(368,743)
224,940
(15,078,839)
10,617,634
(38,311)
4,316,510
(169,387)
C.
III.
2,118,558
3,811,660
3.1
3.2
3.3
3.4
3.5
3.6
16,779,385
(13,690,084)
(970,743)
-
12,947,001
(8,384,415)
(750,926)
-
IV.
1,118,685
129,211
V.
2,168,159
(1,451,614)
VI.
13,562,316
13,042,609
VII.
15,730,475
11,590,995
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
Reported
Adjustments
Restated
Tangible assets(1)
2,386,849
(3,161)
2,383,688
Investment Properties
1,387,651
1,310,661
2,698,312
637,937
(10,701)
627,236
1,882
4,694
6,576
(648,918)
540,777
(108,141)
3,351,828
171,891
3,523,719
Non-controlling Interest
3,506,147
579,437
4,085,584
(1)
The effect of the reclassification of costs related to real estates which are held for Groups own use and classified as tangible assets on consolidated financial statements
from investment properties in the financial statements.
30 September 2014
Other Operating Expense
Reported
Adjustments
Restated
6,954,108
(15,171)
(81,817)
52
(81,765)
2,717,271
15,119
2,732,390
2,445,110
7,245
2,452,355
272,161
7,874
280,035
31 December 2013
Reported
Adjustments
6,938,937
Restated
Tangible assets(1)
2,234,328
(3,161)
2,231,167
Investment Properties
1,342,182
1,020,822
2,363,004
666,543
(10,735)
655,808
2,599
3,202
5,801
2,621,162
540,777
3,161,939
Non-controlling Interest
3,133,450
462,947
3,596,397
(1)
The effect of the reclassification of costs related to real estates which are held for Groups own use and classified as tangible assets on consolidated financial statements
from investment properties in the financial statements.
The accounting policies are consistent with the financial statements in prior period, except the changes in the current period
on accounting policies for real estates. Accounting policies applied and valuation methods used in the preparation of the
consolidated financial statements are expressed in detail below.
2.
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
12
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
financial position and results of operations in accordance with the accounting principles generally accepted in such countries
and IFRS.
II.
1.
The Groups 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 Groups 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 recognized
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 amortized 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 Groups 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 Banks own transaction and control limits are also effectively monitored in order
to avoid limit overrides.
The Parent Banks 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.
The financial statements of the Parent Banks 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
13
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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 Trkiye Snai Kalknma Bankas A.., 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.
1.
Basis of Consolidation:
The consolidated financial statements have been prepared in accordance with the procedures listed in the Communiqu
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.
Due to the Bank does not have any associates and subsidiaries, the special purpose entities established within the Banks
securitization loan transactions are included to the financial statements.
14
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
b.
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 entitys 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 Banks share in the associates equity
is compared with the book value of the associate accounted in the Parent Banks balance sheet. The difference is recognized
in profit or loss in the consolidated income statement.
Accounting policies of Arap Trk Bankas A.., the only associate that is included in the consolidated financial statements
by using the equity accounting method are not different than the Parent Banks. Detailed information about Arap Trk
Bankas A.. is given in Section Five Note I.g.2
c.
A joint venture is an agreement in which the Group has joint control, whereby the Group has rights to the net assets of the
arrangement, rather than rights to its assets and obligations for its liabilities.
The Bank does not have any jointly controlled entities which are financial institutions in nature and to be consolidated in
the financial statements by the equity method.
d.
2.
Presentation of unconsolidated subsidiaries, associates and jointly controlled entities in consolidated
financial statements:
In the consolidated financial statements, unconsolidated subsidiaries, associates and jointly controlled entities are presented
in accordance with TAS 39 Turkish Accounting Standard for Financial Instruments: Recognition and Measurement.
Subsidiaries, whose equity shares are traded in an active market (stock market), are presented in the financial statements
with their fair values. Subsidiaries, associates and jointly controlled entities whose shares are not traded in an active market
(stock market), are recognized at cost of acquisition less any accumulated impairment losses.
IV.
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.
15
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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 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 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 managements 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 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.
Marketable Securities
a.
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.
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 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.
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
16
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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.
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
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 an impairment 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 the fair value of the related asset increases in a subsequent period, the amount of
increases are recognized in equity.
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 Communiqu 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
17
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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
communiqus.
IX.
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.
Marketable securities subject to repurchase agreements are classified under Available for Sale Financial Assets or Held
to Maturity Investments in the Parent Banks 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).
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.
The Groups 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
Groups 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 Groups 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 Groups 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.
18
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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. Beginning from the third quarter of the current year, the
Bank, has changed its accounting policies from historical cost method to revaluation method for the real estate properties
which are held for own use in accordance with TAS 16-Property, Plant and Equipment. The positive valuation differences
between the net book value of real estate property values and the expertise values which are determined by the independent
expert companies are recognized under the equity.
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
XIV.
Depreciation Rate
2% - 25%
2% - 50%
4% - 50%
6.66% - 25%
Investment Property
Investment properties are kind of properties held by the Group to earn rent or benefit from valuation increases. The
investment properties of the Group were used to be measured in the consolidated financial statements at acquisition costs
less accumulated depreciation and impairment provisions. However, beginning from the third quarter of the current year,
accounting policy has changed to fair value method in accordance with TAS 40 Investment Property. A gain or loss
arising from a change in fair value of investment property is recognized in profit or loss for the related period which it rises.
In accordance with the TAS 8 Accounting Policies, Changes in Accounting Estimates and Errors accounting policy of
measurement of investment properties is applied retrospectively and the financial statements of prior period are restated.
The effects of aforementioned adjustments on financial statements are given in Section III. Note I.
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 Groups general borrowing policy, financial expenses are
19
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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 ( Finansal Kiralama A..) and one bank (Trkiye Snai
Kalknma Bankas A..) 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.
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.
Effective 1 January 2005, the Groups 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.
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.
20
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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.
1.
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 Banks 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.
2.
bank Pension Fund (Trkiye Bankas A.. Emekli Sand Vakf), 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 Presidents application dated 2 November 2005, by the Supreme Courts 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
21
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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 Peoples 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 Reasrans T.A.. and Trkiye Snai Kalknma Bankas A.. 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 Reasrans T.A... According to actuarial report as at 22 January
2015, there is not any additional operational or actuarial liability from Trkiye Snai Kalknma Bankas to the Group at 31
December 2014.
Up to now, there has not been any deficit in bank 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 Trk Sigorta irketi, Milli
Reasrans T.A.. and Trkiye Snai Kalknma Bankas A., 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 periods corporate tax.
22
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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.
23
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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 15th 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 in case of a claim made by the company, if it is higher, then the difference is returned to the institution
by the tax authorities after the inspection conducted by those institution.
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.
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. Corporate earnings are subject to 15% corporate tax from the coupon
income earned from the government bonds. Corporate tax is paid by the end of 10 weekday since the month following the
end of the coupon payments.
United Arab Emirates
The companies operating in the free zones of Dubai are not subject to tax according to the countrys legislation.
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 Communiqu 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 arms 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".
24
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
Current Period
2,360,790
112,502,250
0.020984380
Prior Period
2,452,355
112,502,250
0.021798275
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 Groups business segmentation and related information is explained in Section Four Note X.
XXVII. Other Disclosures
The consolidated subsidiaries, Gayrimenkul Yatrm Ortakl and TSKB Gayrimenkul Yatrm Ortakls investments
which they have a 50% share in capital was reclassified from investment in associates to investments in joint ventures in
the current period and the same reclassification is made in 31 December 2014 comparative financial statements.
25
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
SECTION FOUR: INFORMATION ON THE FINANCIAL POSITION AND RISK MANAGEMENT OF THE
GROUP
I.
Explanations on Consolidated Capital Adequacy Ratio
The Groups and the Parent Banks Common Equity Tier I capital ratios are 11.73% and 12.11%, Tier I capital ratios are
11.71% and 12.03%, capital adequacy standard ratios are 13.91% and 14.22% 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 Banks operational risk, Basic Indicator Method is used.
Information related to the Parent Banks capital adequacy ratio:
0%
Value at Credit Risk
Risk Groups
Contingent and Non-Contingent Receivables
from Central Governments or Central Banks
Contingent and Non-Contingent Receivables
from Regional Government or Domestic
Government
Contingent and Non-Contingent Receivables
from Administrative Units and NonCommercial Enterprises
Contingent and Non-Contingent Receivables
from Multilateral Development Banks
Contingent and Non-Contingent Receivables
from 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 (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%
65,054,027
9
50%
75%
11,345,797
10,824
Risk Weights
Bank Only
100%
150%
200%
525,525
250%
413,499
15,943
3,027
161,031
324
1,991
4,113,564
5,640,579
306,120
7,195,616
337,929
2,182,037
126,198,601
256,570
38,103,483
10,439
145
2,965,767
26,764,991
767,047
45,557
3,014,943
4,989,779
14,891
13,892,185
9,998,273
114,486
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)
26
1250%
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
0%(1)
Value at Credit Risk
Risk Groups
Contingent and Non-Contingent
Receivables from Central Governments or
Central Banks
Contingent and Non-Contingent
Receivables from Regional Government or
Domestic Government
Contingent and Non-Contingent
Receivables from Administrative Units and
Non-Commercial Enterprises
Contingent and Non-Contingent
Receivables from Multilateral Development
Banks
Contingent and Non-Contingent
Receivables from 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 (2)
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
(1)
(2)
10%
20%
50%
70,848,506
Risk Weights
Consolidated
100%
75%
12,490,150
10,824
150%
200%
250%
525,525
510,519
15,943
3,027
258,323
324
1,991
9,053,972
10,740,898
520,676
7,263,525
222,794
2,970,184
148,699,672
8,596,723
38,541,439
10,439
145
2,977,596
27,487,336
916,820
45,557
5,057,709
9,998,347
114,486
211,134
3,043,037
14,891
14,972,379
120,093
The amount includes blocked financial investments with risks on saving life policyholders and receivables from individual pension operations of
Anadolu Hayat Emeklilik A.. 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 banks capital adequacy ratio and consolidated capital adequacy ratio:
Bank-Only
Current Period
Consolidated
Prior Period
Current Period
Prior Period(1)
18,110,147
15,976,126
20,491,774
17,716,904
597,015
496,364
721,725
732,008
1,283,820
1,131,277
1,529,377
1,252,503
35,530,950
35,255,300
39,537,331
38,653,387
Equity/((CRCR+CRMR+CROR)*12.5*100)
14.22
16.02
13.91
15.70
12.03
13.60
11.71
13.28
12.11
13.70
11.73
13.32
(1)
The balances are restated within the context of adjustments arising from accounting policy change related to presentation of investment properties
in the consolidated financial statements whose effects are indicated in Section III, note I.(Reported at 31 December 2014 ; capital adequacy standard
ratio is 15.31%; tier 1 capital ratio is 12.87%; common equity tier 1 capital ratio is 12.91% )
27
1250%
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
Prior
Period(1)
6,115,938
33,941
6,115,938
33,941
18,226,235
5,077,465
2,360,790
2,360,790
15,408,830
3,888,315
3,523,719
3,523,719
1,000,000
(1,179)
2,783,082
35,596,272
1,000,000
(1,179)
3,093,151
33,062,715
1,928,700
117,418
204,318
50,582
128,598
76,078
79
2,250,515
33,345,757
255,258
32,807,457
258,023
258,023
201,414
201,414
258,023
201,414
306,478
304,311
33,297,302
32,704,560
(1)
Restated within the context of corrections arising from accounting policy change related to presentation of investment properties in the consolidated financial
statements whose effects are indicated in Section III, Note I. (Reported at 31 December 2014; Capital is TL 37,497,307)
28
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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 (-)
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 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 (-)
Other items to be Defined by the regulator (-)
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 (-)
Other items to be Defined by the regulator (-)
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 (-)
The Portion of Total of Net Long Positions of the Investments in Equity Items of Consolidated Banks and Financial
Institutions where the Bank owns more than 10% of the Issued Share Capital Exceeding the 10% Threshold of above
Tier I Capital not deducted from Additional Core Capital or Tier II Capital as per the Temporary Article 2, Clause 1 of
the Regulation (-)
The Portion of Total of Net Long Positions of the Investments in Equity Items of Consolidated Banks and Financial
Institutions where the Bank owns more than 10% of the Issued Share Capital Exceeding the 10% Threshold of above
Tier I Capital not deducted from Additional Core Capital or Tier II Capital as per the Temporary Article 2, Clause 1 of
the Regulation (-)
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
2,936,385
3,262,650
3,005,733
344,030
6,286,148
2,479,770
268,553
6,010,973
6,286,148
39,583,450
753
6,010,973
38,715,533
1,294
31,166
43,375
14,200
17,477
39,537,331
38,653,387
120,093
111,422
510,519
627,236
29
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
2,915,640
Consolidated
Amount
recognized in
regulatory
capital
2,783,082
258,023
344,030
Total
4,163,600
2,936,385
Total
4,398,426
4,313,600
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
Yes
Unconsolidated -Consolidated
Yes
Unconsolidated Consolidated
Bond
2,083
Bond
833
2,974
Subordinated Liabilities
24.10.2012
Dated
10 years
1,190
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
30
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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
None
None
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 150,000 (USD 50 Million) is considered as subordinated borrowing included
in calculation of additional Tier 1 capital as at 30 September 2015.
II.
1.
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 Banks 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 Banks 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 Banks top management.
The limits set for the market risk management within the framework of the Parent Banks 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 30 September 2015.
31
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
1.a.
61,637
92,903
394,491
38,353
132
15,923
118,286
(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)
721,725
III.
9,021,563
Foreign currency position risk for the Group is a result of the difference between the Groups 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 Banks 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 Banks 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
30.09.2015
29.09.2015
28.09.2015
23.09.2015
22.09.2015
21.09.2015
USD
2.9740
2.9917
3.0129
2.9798
2.9759
2.9561
EUR
3.3130
3.3555
3.3714
3.3165
3.3077
3.3055
The Parent Banks last 30-days arithmetical average foreign currency purchase rates:
USD: TL 2.9671 EUR: TL 3.3267
.
32
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
USD
Other FC
Total
5,685,754
19,700,627
5,589,752
30,976,133
3,510,182
172,504
44,750
814,553
29,508,626
1,757,718
1,024,275
834,641
10,601,045
57,083,566
18,143
2,558,072
6,102,541
1,196,779
44,750
11,433,741
89,150,264
50,788
179,071
14,600
244,459
38,628
38,628
6,236
237
46,851
53,324
1,596,504
41,389,897
2,722,063
93,107,230
131,621
9,193,680
4,450,188
143,690,807
2,331,351
28,899,096
239,205
14,564,081
1,235,611
531,074
3,713,875
46,930,670
2,753,734
28,773,786
20,308,101
744,443
658,169
6,020,202
12,138
24,034
70,769
6,703,395
81,849,968
2,992,939
43,350,005
21,567,746
1,346,286
585,377
48,385,795
1,618,716
104,843,325
201,463
6,986,775
2,405,556
160,215,895
(6,995,898)
2,869,173
11,791,953
8,922,780
10,369,598
(11,736,095)
13,728,417
31,535,339
17,806,922
25,953,044
2,206,905
(3,167,030)
2,596,189
5,763,219
1,380,935
(16,525,088)
13,430,560
45,923,481
32,492,921
37,703,577
Total Assets
Total Liabilities
Net Balance Sheet Position
Net Off Balance Sheet Position
Derivative Financial Assets
Derivative Financial Liabilities
Non-Cash Loans
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
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
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 1,057,540), Operating Lease Development Costs (TL
8,336), Deferred Tax Asset (TL 6,685), Prepaid Expenses and Taxes (TL 68,629), Intangible Assets (TL 43,750) in assets and Derivative Financial Instruments Foreign
Currency Expense Accruals (TL 493,043), General Provision (TL 44,665), and Shareholders Equity (TL -221,710) 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 7,270,410 of the aforementioned
loans; TL 3,576,635 is USD indexed, TL 3,659,338 is EUR indexed, TL 9,103 is CHF indexed, TL 5,921 is GBP indexed, TL 19,411 is JPY indexed and TL 2 is CAD
indexed. The balances include factoring receivables.
(3)
The item includes TL 1,951,124 precious metals deposit accounts.
(4)
Includes Tier 2 subordinated bonds which are classified on the balance sheet as subordinated loans, amounting to TL 4,269,091.
(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)
33
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
IV.
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 Banks 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 Banks 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
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
Money Market Placements
Financial Assets Available for Sale
Loans (1)
Held to Maturity Investments
Other Assets
Total Assets
Liabilities
Bank Deposits
Other Deposits
Money Market Funds
Miscellaneous Payables
Marketable Securities Issued(2)
Funds Provided from Other
Financial
Institutions
Other Liabilities (3) (4)
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)
20,311,856
13,649,653
33,961,509
1,638,146
7,948,560
3,362,561
4,283,831
1,738,764
282,880
4,939
765,374
895,853
1,025,831
332,028
76,139
267,336
1,307,803
5,218,215
41,909,269
70,114
1,417,567
75,284,029
70,221
6,107,492
31,410,131
214,247
214,482
40,651,190
11,971,594
43,208,089
2,178,931
796,884
59,464,209
12,937,335
63,870,724
12,854
1,983,644
79,141,524
11,372,816
18,086,746
160,896
147,328
29,843,925
221,453
311,754
29,036,100
45,124,442
4,440,744
79,860,840
22,379,103
983,139
2,501,669
693,726
22,266,188
729,855
4,272
4,731,855
1,749,507
8,642,908
1,334,161
203,456
3,317,040
6,623
867,585
35,528,739
5,736,487
6,671
10,233,961
6,504,130
7,955,018
149,622,338
24,443,119
17,302,511
29,708,102
3,994,432
23,091,861
15,640,049
1,365,814
3,350,386
47,442,542
621,653
114,781,580
432,332
51,950,089
580,172
33,683,284
152,776
15,279,718
9,861,139
25,780,925
63,861,806
19,982,786
16,308,429
(39,497,551) (11,298,899)
558,111
3,329,501
(38,939,440)
(7,969,398)
51,248,756
103,953,509
(58,829,067)
(1,119,518)
24,661,407
(553,009) (1,789,300)
63,308,797 18,193,486
(58,829,067)
1,378,024
47,828,905
198,796,713
2,637,042
33,596,005
329,509,319
53,035,689
329,509,319
109,625,517
(109,625,517)
3,887,612
(3,461,827)
425,785
34
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
Interest rate sensitivity of assets, liabilities and off balance sheet items (Based on repricing periods):
Prior 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
Money Market Placements
Financial Assets Available for Sale
Loans (1)
Investments Held to Maturity
Other Assets
Up to
1 Month
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
22,913,933
26,569,213
42,042,006
43,223,522
51,562,883
68,221,719
25,388,694
46,634,408
277,073,232
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
20,983,454
540,520
668,740
112,055
Total Assets
Liabilities
Miscellaneous Payables
Marketable Securities Issued(2)
Funds Provided from Other Financial
Institutions
Other Liabilities (3) (4)
Total Liabilities
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
47,876,745
49,829,789
101,905,862
44,230,141
21,374,989
8,002,388
9,796,206
91,763,646
277,073,232
30,187,894
60,219,331
15,592,488
(59,863,856)
(1,006,619)
1,012,885
2,931,693
22,304,769
1,755,571
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)
35
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
b.
EUR
USD
JPY
TL
0.24
2.94
1.75
1.70
11.75
2.54
5.52
11.00
12.39
4.14
5.05
Loans
4.13
4.75
8.92
1.84
4.41
9.23
Bank Deposits
0.79
1.62
10.81
Other Deposits
1.07
1.44
1.34
1.24
1.02
5.08
Funds
0.50
0.50
6.00
1.01
1.96
11.55
3.75
13.01
Liabilities
0.10
7.25
9.79
Miscellaneous Payables
(1)
0.87
10.44
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
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
3.64
1.02
9.99
1.94
4.61
9.49
Funds
0.50
0.50
6.00
1.28
1.95
8.91
8.90
3.33
12.28
Liabilities
0.02
7.03
Miscellaneous Payables
(1)
2.29
9.88
Includes subordinated bonds which are classified on the balance sheet as subordinated loans.
36
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
c.
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
(5,139,158)
4,954,962
(181,406)
201,559
(149,772)
326,195
5,482,716
(5,470,336)
Revenue/Shareholders Equity
Loss/ Shareholders Equity
(14.47) %
13.94 %
(0.51) %
0.57 %
(0.42) %
0.92 %
15.43 %
(15.40) %
V.
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:
Book Value
3,560,354
Comparison
Fair Value
Market Value
3,560,354
120,093
27,636
812,298
37
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
c.
Unrealized gains and losses on investment in stocks, revaluation increases with the amounts of main and additive
capital:
Portfolio
Realized
Gains/losses
During the
period
Revaluation Increases
Including to
Total
the Capital
Contribution
Private Equity
Investments
Shares Traded on a
Stock Exchange
Other Stocks
Total
VI.
Total
Unrealized Gains
Including in
to the main
capital
1,905,315
1,905,315
1,905,315
1,905,315
Including to
the Capital
Contribution
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 Banks 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 Banks 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 Banks 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 Communiqu 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 nine months of 2015 are given below.
Liquidity Coverage Ratios (Monthly)
Current Period
Average (%)
FC
197.17
FC + TL
110.96
38
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
Demand
Up to 1
Month
1-3
Months
3-12
Months
1-5
Years
5 Years Unallocated
(1)
and Over
Total
Current Period
Assets
Cash (Cash in Vault, Foreign
Currency Cash, Money in Transit,
Cheques Purchased) and Balances
with the Central Bank of Turkey
8,150,219
25,811,290
Banks
1,874,205
4,047,772
1,738,764
282,880
4,939
265,929
624,839
747,231
1,070,039
505,691
1,301,362
76,662
353,973
439,346
550,507
1,793,730
21,139,699 23,551,650
16,648,566
16,077,275
15,590,592
46,717,196
79,369,268 23,476,986
47,245
20,005
191,655
71,748
2,306,389
728,662
2,793,124
287,275
826,633
2,660,940
147,328
26,152,043
33,596,005
28,021,554
51,142,253
19,011,036
27,068,873
329,509,319
33,961,509
7,948,560
148,832
3,362,561
1,378,024
47,828,905
916,830
198,796,713
2,637,042
Liabilities
Bank Deposits
867,585
4,440,744
693,726
1,749,507
203,456
Other Deposits
35,534,979
79,854,476
22,264,636
8,641,364
3,320,260
6,623
149,622,338
2,507,243
2,402,029
20,917,151
12,370,039
9,246,080
47,442,542
22,338,714
198,850
749,103
1,156,452
2,501,669
4,716,955
5,751,387
10,233,961
7,614,537
81,588
11,059
67,396
(4)
(3)
9,527,931
24,443,119
6,504,130
29,708,102
17,302,511
25,390
3,224,330
335,243
609,225
48,978
48,607,089
53,035,689
45,955,885
122,481,713
30,693,027
38,428,796
27,536,998 15,805,811
48,607,089
329,509,319
(71,339,460) (11,681,991)
12,453,337
(17,934,331)
185,434
7,955,018
Prior Period
Total Assets
13,397,536
38,842,565
17,544,668
55,388,781
87,732,151 41,958,190
22,209,341
277,073,232
Total Liabilities
38,570,413
104,226,483
30,743,629
24,327,536
18,450,070 14,873,663
45,881,438
277,073,232
(65,383,918) (13,198,961)
31,061,245
Liquidity Gap
(1)
(2)
(3)
(4)
(25,172,877)
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 4,269,091 of Includes Tier 2 subordinated bonds which are classified on the balance sheet as subordinated loans.
The borrower funds are presented in Up to 1 month column in other liabilities.
VII.
None.
39
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
VIII.
In the calculation of the Groups Credit Risk Mitigation in accordance with the Communiqu 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.
Collaterals on the Basis of Risk Classes:
Financial
Collateral
Amount (1)
Risk Groups
Contingent and Non-Contingent Receivables from
Central Governments or Central Banks
Contingent and Non-Contingent Receivables from
Regional Government or Domestic Government
Contingent and Non-Contingent Receivables from
Administrative Units and Non-Commercial Enterprises
Contingent and Non-Contingent Receivables from
Multilateral Development Banks
Contingent and Non-Contingent Receivables from
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
Secured Marketable Securities
Securitization Positions
Short-term Receivables and Short-term Corporate
Receivables from Banks and Intermediaries
Investments as Collective Investment Institutions
Other Receivables
(1)
Other/Physical
Collateral
Guaranties and
Credit Derivatives
84,374,700
26,776
18
261,350
5,933
324
20,317,682
4,039
159,156,175
50,115,758
7,449,898
328,663
27,497,775
10,439
916,820
15,216,099
45,557
211,134
18,150,400
Includes total risk amounts before the effect of credit risk mitigation but after credit conversions.
IX.
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 Banks 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 Banks risk management system is
given by the main risk types.
40
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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.
The Bank defines measures and manages credit risk of the all products and activities. Board of Directors review the Parent
Banks 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 Banks 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 Banks 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 Banks 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 portfolios 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 Managements 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.
41
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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.
The Groups 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 Groups investments in unconsolidated associates, subsidiaries and jointly controlled entities are evaluated within the
context of investment banking.
42
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
(2)
Corporate
2,936,157
Commercial
5,426,567
112,554
61,914
82,581
24,774
541,111
302,446
784,119
Retail
3,428,277
Private
Treasury/
Investment
191,117
58,824
58,824
3,040,512
560,545
3,040,512
195,135
138,941
8,293,303
4,651,195
862,991
1,598,430
1,598,430
262,460
728,788
12,465
503,839
1,150,664
30,023
215,047
273,903
1,038,986
188,372
700,681
303
8,084
1,924,724
77,441
1,463,291
1,630,543
549,882
2,098,232
145,242
400,891
1,189,366
168
72,536,203
79,677,695 42,504,609
7,380
195,914
73,551
22,299
256,686
(299,376)
134,387
5,306
337,182
3,362,561
7,948,560
1,378,024
47,828,905
114,135
2,637,042
53,803
309,869
504,195
736,762
2,761,478
2,305,073
4,521,641
1,982,686
1,487,557
23,213,268
17,189,789
77,486
1,301,846
326,309
Total
15,690,686
12,066,157
191,117
12,696
39,788
2,093,338
Unallocated
4,707
2,806,763
1,150,664
30,023
7,397,383
1,295,406
2,090,152
794,746
256,686
(299,376)
4,339,259
1,770,282
7,856,929
3,362,147
655,620
2,706,527
2,360,790
345,737
3,362,561
7,948,560
1,378,024
47,828,905
197,333,629
2,637,042
4,521,641
56,589,089
3,289,239
61,209,718
329,509,319
12,860,258
157,577,356
1,555,032
1,555,032
30,252,753
24,443,119
29,708,102
516,490
47,442,542
24,443,119
29,708,102
21,422,505
13,077,747
34,282,916
329,509,319
20,828,529
13,077,747
34,282,916
The amount of TL 4,269,091 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.
43
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
a.
a.1.
a.2.
1,903,330
1,082,046
2,985,376
FC
897,203
29,821,533
257,397
30,976,133
Prior Period
TL
FC
1,623,885
3,138,527
4,762,412
906,882
19,418,837
55,416
20,381,135
Prior Period
TL
FC
TL
FC
1,082,046
3,790,738
3,138,527
2,627,004
1,082,046
26,030,795
29,821,533
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.
As per the Communiqu 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 communiqu. 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 5% - 25% for other FC liabilities. Reserves are
calculated and set aside every two weeks on Friday for 14-day periods. In accordance with the related communiqu, CBRT
pays interests TL and USD reserves.
b.
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 30 September 2015 are
amounting to TL 84,897 (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 30 September 2015
are amounting to TL 417,202 (31 December 2014: TL 318,315).
44
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
b.3.
Prior Period
FC
TL
FC
4,932
155,299
26,197
31,501
737,716
42,345
1,836,994
202,935
Futures
50
82
Options
6,904
179,714
2,352
67,078
44,381
13,277
54,240
2,216,470
231,499
849,572
Other
Total
c.
Information on Banks:
Current Period
TL
Prior Period
FC
TL
FC
Banks
Domestic Banks
Foreign Banks
1,742,347
3,401,650
3,123,784
1,293,062
103,672
2,700,891
286,035
1,303,576
1,846,019
6,102,541
3,409,819
2,596,638
d.
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 10,698,000 as at 30 September
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 21,719,344 as at 30 September
2015 (31 December 2014: TL 20,785,043).
d.3.
Debt Securities
Quoted on a Stock Exchange
Not-Quoted
(1)
Share Certificates
Prior Period
49,202,386
45,237,578
30,488,358
37,708,258
18,714,028
7,529,320
106,505
110,846
32,704
38,687
Not-Quoted
73,801
72,159
1,900,964
115,565
Other
420,978
444,270
Total
47,828,905
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.
45
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
e.
e.1.
Prior Period
Non-Cash
237,533
237,533
Cash
277
277
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
192,614,186
1,079,880
1,423,119
264,315
3,007,088
82,793
281,749
99,685
32,999
34,101
1,243,408
522,486
514,631
1,457,220
3,802,623
791,371
130,036
65,777
(1)
The amount of TL 32,097 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.
2,926,463
78,368
2,257
784,024(1)
7,237
110
The amount of TL 32,097 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.
670,293
285,827
393,783
1,261,333
395,852
(1)
The amount of TL 32,097 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.
46
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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
General Purpose Consumer Loans
Other Consumer Loans
Consumer Loans FC
Real Estate Loans
Vehicle Loans
General Purpose Consumer Loans
Other Consumer 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
General Purpose Consumer Loans
Other Consumer Loans
Personnel Loans- FC Indexed
Real Estate Loans
Vehicle Loans
General Purpose Consumer Loans
Other Consumer Loans
Personnel Loans-FC
Real Estate Loans
Vehicle Loans
General Purpose Consumer Loans
Other Consumer 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
532,738
19,201
9,001
504,536
Total
36,127,428
15,808,949
854,550
19,463,929
13,397
13,397
18,405
18,405
31,802
31,802
264,475
3,040
38
261,397
1,237
3
282,036
3,043
38
278,955
9,715,725
4,115,588
5,600,137
180,029
180,029
31,081
8,576
16,324
16,324
1,234
31,081
9,926,835
4,295,617
5,631,218
81,048
4,683
1,259
75,106
433
42
7
384
90,057
4,725
1,266
84,066
152
152
192
192
344
344
1,100
5,491
360
30
2
6,621
362
1,100
5,131
28
6,259
130,653
55,788
74,865
471
471
131,124
55,788
75,336
514,019
24,470
10,943,605
7,999
448
273,631
522,018
24,918
47,143,183
8,576
35,925,947
47
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
e.4.
1,518,878
Total
29,201,046
2,388
1,267,387
7,637
1,277,412
85,778
3,278,089
20,137
3,384,004
1,430,712
22,885,325
223,593
24,539,630
63,244
2,134,364
567,583
2,765,191
642
102,928
40,007
143,577
2,852
384,689
98,405
485,946
59,750
1,646,747
429,171
2,135,668
1,442,610
9,008
1,451,618
176,024
2,192
178,216
1,266,586
6,816
1,273,402
1,290,604
56,162
6,086
1,352,852
244,537
56,162
1,046,067
6,086
1,052,153
1,233,436
14,143
1,247,579
41,461
922
42,383
Total
4,147,623
849,109
36,060,669
Vehicle Loans
General Purpose Commercial Loans
Other Commercial Loans
Commercial Loans With Instalments-FC
Real Estate Loans
Vehicle Loans
General Purpose Commercial Loans
Other Commercial Loans
Corporate Credit Cards-TL
With Instalments
Without Installments
300,699
e.5.
31,063,937
Domestic Loans
Foreign Loans
Total
Current Period
192,280,750
5,052,879
197,333,629
Prior Period
165,180,142
3,147,946
168,328,088
48
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
e.6.
e.7.
Prior Period
51,027
1,278
51,027
1,278
Specific Provisions
Current Period
Prior Period
103,278
78,619
403,163
269,293
2,028,081
1,656,793
2,534,522
2,004,705
e.8.
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)
38,265
61,469
77,165
38,265
61,469
77,165
26,499
34,403
60,245
26,499
34,403
60,245
49
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
e.8.2.
Group IV
Loans and Receivables
with Doubtful
Collectability
384,519
195,338
110,853
78,328
533,476
240,973
155,389
137,114
1,692,103
890,329
479,459
322,315
17,440
11,450
1,947
4,043
Other
Additions (+)
Corporate and Commercial Loans
Retail Loans
Credit Cards
Other
Transfers from Other NPL categories (+)
1,298,921
728,144
335,878
234,899
Group V
Uncollectible Loans and
Other Receivables
1,781,506
1,216,861
328,113
181,693
54,839
61,195
28,655
23,377
836
8,327
838,314
441,763
214,204
182,347
Other
Transfers to Other NPL categories (-)
Corporate and Commercial Loans
Retail Loans
Credit Cards
1,298,921
728,144
335,878
234,899
838,314
441,763
214,204
182,347
274,897
109,171
99,265
66,461
212,143
92,482
69,462
50,199
20
13
2
5
619
388
214
17
844
511
333
1,607
1,150
457
503,628
248,850
155,500
99,278
800,368
447,084
209,791
143,493
103,278
51,313
32,019
19,946
403,163
225,045
106,208
71,910
400,350
397,205
Other
Collections (-) (1)
Corporate and Commercial Loans
Retail Loans
Credit Cards
Other
Write-Offs (-) (1)
Corporate and Commercial Loans
Retail Loans
Credit Cards
Other
Foreign Currency Effect
Corporate and Commercial Loans
Retail Loans
378,805
195,232
139,525
42,650
1,398
172,960
71,380
69,077
31,389
1,114
18,096
14,305
3,791
Credit Cards
Other
Current Period Ending Balance
Corporate and Commercial Loans
Retail Loans
Credit Cards
Other
Specific Provisions (-)
Corporate and Commercial Loans
Retail Loans
Credit Cards
Other
Net Balance on Balance Sheet
2,147,346
1,434,972
360,883
290,837
60,654
2,028,081
1,325,050
351,540
290,837
60,654
119,265
(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
Varlk Ynetimi A. with a value of TL 29,091.
50
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
e.8.3.
Information on the Groups foreign currency non-performing loans and other receivables:
Group III
Group IV
Group V
22,299
54,187
506,104
4,699
27,719
506,104
17,600
26,468
13,564
34,125
419,332
3,076
18,254
419,332
10,488
15,871
Current Period:
Period Ending Balance
Specific Provisions (-)
Net Balance on Balance
Sheet(1)
Prior Period:
Period Ending Balance
Specific Provisions (-)
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
400,350
397,205
119,265
503,628
800,368
2,086,692
103,278
403,163
1,967,427
400,350
397,205
119,265
60,654
60,654
305,900
264,183
124,713
384,519
533,476
1,726,580
78,619
269,293
1,601,867
305,900
264,183
124,713
87
87
Banks (Net)
Other Loans and Receivables (Gross)
Specific Provisions (-)
54,839
54,839
f.
f.1.
As at 30 September 2015, held to maturity investments, which are given as collateral or blocked amount to TL 851,825 (31
December 2014: TL 447,605).
f.2.
As at 30 September 2015, assets held to maturity, which are subject to repurchase agreements amount to TL 1,376,107 (31
December 2014: TL 348,913).
51
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
f.3.
Government Bonds
Prior Period
2,502,181
1,307,192
2,502,181
1,307,192
Treasury Bills
Other Public Debt Securities
Total
f.4.
Debt Securities
Quoted on a Stock Exchange
Not Quoted
(1)
Prior Period
2,637,042
1,391,860
1,861,063
1,169,369
775,979
222,491
2,637,042
1,391,860
Indicates unlisted debt securities, and debt securities that have not been traded at the end of the related periods although they are listed.
Beginning Balance
Foreign Exchange Differences Arising on Monetary Assets
Purchases During the Year (1)
Disposals through Sales and Redemption
Impairment Losses (-)
Valuation Effect
Balance at the End of the Period
Current Period
1,391,860
18,586
2,507,284
(1,292,043)
Prior Period
7,728,447
692
86,112
(6,509,055)
11,355
2,637,042
85,664
1,391,860
(1)
The government bonds with the nominal value of TL 1,608,157 are reclassified to held to maturity investment from available for sale investments in
current period.
g.
As per the Communiqu on Preparation of Consolidated Financial Statements of Banks, credit institutions or financial
institutions associates are included in the scope of consolidated financial statements.
g.1.
g.2.
Address (City/
Country)
stanbul/TURKEY
20.58
79.42
Title
Total Assets
4,196,699
(1)
Shareholders
Equity
583,662
Total
Tangible
Assets
26,167
Interest
Income (1)
117,354
Securities
Income
68
Current
Period
Profit/Loss
42,529
Prior Period
Profit/Loss
Fair
Value
60,380
52
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
g.3.
Beginning balance
Movements during the period
Purchases (1)
Bonus shares acquired
Current Period
124,575
Prior Period
85,295
39,280
124,575
124,575
Due to Arap Trk Bank A.. capital increase through issuance of bonus shares in the prior period.
g.4.
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.
g.6.
g.7.
g.8.
The Group sold the stake in Avea letiim Hizmetleri A.., which represent 7.49% of Aveas capital (the total capital
amounting of TL 8,200,081) with a nominal value of TL 614,336 to Trk Telekomnikasyon A.. with amounting to TL
655,306. 3.14 % of the sales price has been paid as of 3 August 2015. 3.14% of the remaining amount will be paid in
January 2016, remaining 93.72% will be paid in 4 equal annual installments beginning in January 2017 and ending in
January 2020. After the valuation, the loss amounting to TL 155,084 has occurred due to the sale.
53
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
h.
As per the Communiqu on Preparation of Consolidated Financial Statements of Banks, credit institutions or financial
institutions subsidiaries are included in the scope of consolidated financial statements.
h.1.
h.2.
Insurance /
Reinsurance
Companies
Yatrm
Gayrimenkul
Finansal
Menkul
Yatrm
Kiralama A..
Deerler A..
Ortakl A..
2,516,068
679,484
501,502
2,323,932
2,951,633
1,750,374
1,570,000
986,146
530,303
355,000
353,898
290,174
424
28,241
100,484
1,302
47,847
104,690
591,994
14,952
398
13,494
292,019
565,240
1,486,477
47,842
124,588
1,938
173,338
24,195
3,204
11,314
507
30,266
2,323,932
176,718
2,500,650
395
2,500,255
426
806
15,300
172
675
25,003
45,398
257
1,013
37,505
2,906,235
2,515,811
678,471
463,997
2,906,235
2,515,811
678,471
463,997
2,906,235
2,515,811
678,471
463,997
54
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
h.3.
No
12345678910111213141516171819(1)
Title
Banks Share
Percentage-If
Different, Voting
Rights (%) (1)
Banks Risk
Group Share
Percentage
(%)
43.92
71.55
100.00
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
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
Istanbul/Turkey
Istanbul/Turkey
Moscow/Russia
Tbilisi/Georgia
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
Indirect share of the Group is considered as the Parent Banks share percentage.
No
12345678910111213141516171819(1)
Total
Assets
Shareholders
Equity
Total
Tangible
Assets
Interest
Income (1)
Securitie
s Income
Current
Period
Profit/Loss
Prior
Period
Profit/Loss
Fair Value
4,137,862
817,325
135,419
140,368
43,049
48,583
50,947
750,000
11,265,496
729,379
153,548
223,848
24,712
117,628
73,041
2,246,800
1,092,969
185,602
43,387
38,812
238
(5,516)
(2,216)
252,035
39,001
3,455
2,820
862
208,447
38,452
6,944
31,259
6,690
7,658
1,015
(143)
99
(1,795)
(40)
1,497,584
94,989
1,027
86,797
2,035
20,228
3,700
5,333,229
701,628
20,365
288,269
3,800
52,245
57,244
387,121
3,818,105
2,516,240
2,910,744
3,571
3,337
197,292
68,762
1,044,400
260,897
257,959
309
7,140
3,113
3,625
13,075
122,430
86,993
83,697
1,662
5,653
1,008
9,872
7,189
5,664,926
897,098
95,529
174,711
53,592
15,829
57,832
362,100
230,733
230,317
87
10,922
1,184
704
16,615
144,539
3,638,827
455,075
41,801
68,242
2,892
15,312
3,981
120,084
17,413
1,322
6,811
2,594,037
1,150,282
425,463
70,095
60,081
(2,464)
(319)
122,883
1,581
388,783
179,105
373,469
358
(31,408)
1,346
93,000
21,551,538
2,588,741
425,268
792,617
21,097
260,761
296,115
2,467,500
680,072
73,696
3,606
17,796
2,052
(791)
(346)
Additional
Shareholders
Equity
Required
55
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
h.4.
Current Period
4,122,155
Prior Period
3,694,708
322,050
179,845
(235,965)
247,602
4,208,240
4,122,155
Reveals the information related to companies subject to consolidation in which Bank directly owns share.
TL 103,450 of related amount is comprised of the participation in the cash capital increase of Closed Joint Stock Company bank, TL 36,777 of the
participation in initial capital of JSC bank Georgia while the rest is due other subsidiaries capital increase from prior periods profits through issuance
of bonus shares in the current period.
(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
1,570,484
1,851,328
Prior Period
1,643,985
1,694,716
107,597
121,857
678,831
4,208,240
661,597
4,122,155
Current Period
3,167,969
Prior Period
3,222,112
Information of the consolidated subsidiaries in which the Bank has direct ownership is presented.
h.6.
Information of the consolidated subsidiaries in which the Bank has direct ownership is presented.
h.7.
Consolidated subsidiaries disposed of in the current period: None.
h. 8.
Subsidiaries acquired in the current period:
Beginning from the 3 August 2015, the Bank has started to proceed its banking operations in Georgia under the JSC Isbank
Georgia which is a fully owned subsidiary having a banking license in Georgia and has an initial capital of TL 36,777 (Lari
30,000,000).
h. 9.
Other issues on subsidiaries: None
i.
Information on jointly controlled entities (Net):
i. 1.
The Parent
Banks Share
The Share of
Group
50 %
50 %
50 %
Current
Asset
940
10,152
8,487
Fixed
Asset
225
65,638
2,343
Long-term
Liability
1,798
Income
319
112
13,957
Expense
1,938
1,406
14,334
56
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
i. 2.
As per the Communiqu on Preparation of Consolidated Financial Statements of Banks, credit institutions or financial
institutions jointly controlled entities are included in the scope of consolidated financial statements. There are no jointly
controlled entities which are excluded in the scope of the consolidation.
j.
j.1.
j.2.
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
As at 30 September 2015, the remaining maturities of the Group's operating lease receivable is less than 1 year the total
amount is TL 4,707 (31 December 2014: TL 2,352).
k.
k.1.
FC
38,628
Prior Period
TL
FC
38,628
As at 30 September 2015, the face values and the net fair values, recognized 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
4,860,000
4,860,000
Asset
Prior Period
Liability
Face Value
Asset
Liability
38,628
38,628
57
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
k.2.
Hedging
Item
Type of
Risk
Hedged Item
Fair Value
Change of
Hedged
Item(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
(27,346)
23,191
(4,155)
(5,671)
4,721
(950)
The fair value of hedged item and hedging instrument are presented as net market value excluding credit risk and accumulated interest.
The Bank and Group companies had measured the real estates which are classified under the tangible assets at its cost in
accordance with the TAS 16- Property, Plant and Equipment. Beginning from the third quarter of the current year, the
Bank has changed its accounting policies and has started to use revaluation method for the real estates that are held for own
use.
As a result of the valuations that are carried out by independent expertise firms, revaluation difference amounting to TL
2,613,546 recognized under equity, TL 17,177 provision amounts for impairment loses accounted in prior years are
reversed and TL 7,085 provision are recognized for the real estates that are subject to valuation. The carrying amount of
real estates before valuation was TL 1,636,939.
m.
Investment properties are properties that the Group holds to earn rentals. Explanations on these subjects are given in Section
Three Note XIV.
Current Period
2,698,312
Prior Period
2,363,004
240,938
(301,627)
176,370
(7,230)
2,806,763
147,608
(110,935)
283,199
15,436
2,698,312
The disposals include balance of Kartal and Topkap projects of Gayrimenkul Yatrm Ortakl A.. amounting to TL 297,339 which has been
classified from investment property to other assets.
In accordance with the TAS 8 Accounting Policies, Changes in Accounting Estimates and Errors accounting policy of
measurement of investment properties is applied retrospectively and the financial statements of prior period are restated.
The effects of aforementioned adjustments on financial statements are given in Section III. Note I.
58
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
n.
As at 30 September 2015, the Parent Bank and the other consolidated Group companies has deferred tax asset amounting
to TL 510,519. 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
(1)
(2)
o.
Prior Period
139,144
23,623
(655,817)
(608,527)
4,396
4,216
109,094
20,840
(107,336)
(67,388)
(510,519)
(627,236)
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, Finansal Kiralama A., one of the consolidated companies, has TL 114,990 (31 December 2014: TL 283,354)
unused investment incentive and TL 230 (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.
Prior Period
65,993
2,167
28,894
68,649
6,340
87,538
(39,722)
(94,613)
(528)
(1,908)
11
(13)
56,815
65,993
The Group has no discontinued operations. The assets classified as Assets Held for Sale of the Group consist of real
estates. Announcements about the real estates subject to sale are also made by means of newspaper advertisements and
similar media. Those real estates of the Parent Bank subject to sale are announced on the Parent Banks web site.
p.
The other assets item does not exceed 10% of total assets.
59
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
II.
a.
Information on Deposits:
a.1.
Demand
7 Days
Notice
Up to 1
Month
1-3
Months
3-6
Months
6 Months
to 1 Year
Total
Savings Deposits
10,228,574
2,679,242
37,863,376
1,151,101
287,039
397,010
2,695
52,609,037
16,918,208
8,593,602
37,872,349
3,984,029
4,041,772
8,488,257
627
79,898,844
Residents in Turkey
14,793,517
7,729,740
33,312,738
2,931,395
841,707
2,209,769
570
61,819,436
2,124,691
863,862
4,559,611
1,052,634
3,200,065
6,278,488
57
18,079,408
677,398
12,706
32,030
2,163
358
32
724,687
5,779,994
1,589,071
4,824,229
160,420
27,084
20,535
12,401,333
252,710
163,865
1,432,440
173,706
12,623
1,969
2,037,313
258,069
14,960
1,951,124
2,722,820
1,571,041
366,877
308,942
2,117,753
7,955,018
Residents Abroad
Public Sector Deposits
Commercial Deposits
Other Institutions Deposits
Precious Metals Deposits
Interbank Deposits
The Central Bank of
Turkey
Domestic Banks
1,678,095
867,585
456
456
6,373
2,251,377
33,131
30,006
Foreign Banks
733,753
471,443
1,537,910
336,871
Participation Banks
127,003
308,942
2152
2,323,039
2,115,601
5,504,520
127,003
Other
Total
36,402,564
a.2.
15,761,306
83,595,465
5,838,296
4,935,887
11,040,516
3,322
157,577,356
Demand
Savings Deposits
7 Days
Notice
Up to 1
Month
1-3
Months
3-6
Months
6 Months
to 1 Year
Total
8,543,512
2,564,643
36,743,275
1,471,201
341,003
378,626
50,042,260
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
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
60
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
a.3.
Savings deposits which are under the guarantee of Savings Deposits Insurance Fund exceeding the insurance limit:
Savings Deposits
Savings Deposits
28,459,908
26,123,513
23,654,293
23,503,729
14,620,401
11,198,985
33,368,850
23,572,861
1,150,280
1,831,203
797,155
865,810
3,384,851
2,754,222
265,517
215,809
136,293
18,144
a.4.
Savings deposits which are not under the guarantee of deposit insurance fund:
Current Period
604,109
Prior Period
431,891
12,078
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.
TL
Prior Period
FC
TL
FC
Forward Transactions
126,891
77,591
11,438
47,090
Swap Transactions
624,939
437,858
244,943
364,095
Futures
253
280
Options
3,788
272,699
1,363
77,081
Other
2,103
8,910
2,905
644
757,974
797,058
260,929
488,912
Total
c.
c.1.
Prior Period
FC
TL
FC
1,160,728
1,426,785
2,362,826
808,174
2,931,809
41,766,958
2,731,384
28,114,730
Total
4,092,537
43,197,622
5,094,210
28,965,797
3,879
42,893
61
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
c.2.
Prior Period
FC
TL
FC
Short-term
2,587,340
5,847,735
4,084,397
9,849,605
1,505,197
37,349,887
1,009,813
19,116,192
Total
4,092,537
43,197,622
5,094,210
28,965,797
c.3.
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
March 2015
Funds Borrowed
Maturity
1 year
May 2015
1 year
July 2015
1 year
1 year
September 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
October 11
October 11
June 12
June 12
December 13
December 13
December 14
March 15
Amount
Final Maturity
USD 75,000,000
5 years
USD 31,250,000
EUR 160,000,000
5-7 years
EUR 80,666,667
USD 225,000,000
5 years
USD 150,000,000
EUR 125,000,000
12 years
EUR 112,500,000
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
Other:
The Bank has obtained funds with an amount of USD 500 million and 10 years maturity, through securitization of future
flow transactions.
62
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
d.
Prior Period
FC
TL
FC
Bills
6,966,471
2,666,776
4,561,693
2,339,748
Bonds
1,173,885
14,631,879
1,584,575
10,111,076
Total
8,140,356
17,298,655
6,146,268
12,450,824
e.
The group does not have any liabilities resulting from finance lease transactions.
g.
The group does not have any liabilities resulting from derivative financial transactions held for risk management.
h.
Information on Provisions:
h.1.
Current Period
3,005,733
2,520,538
115,632
176,236
20,729
183,907
125,052
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.
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 3,828.37 (full TL
amount as at 30 September 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 541,942 as at 30 September 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 at 30 September 2015, provision for unused vacation pay is amounting to TL 44,601
(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 at 30 September 2015, provision amount
for the currency evaluation losses in the principal amount of foreign currency indexed loans is TL 258 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 30 September 2015, TL 74,072 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.
63
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
h.5.
h.5.1.
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 Trkiye Bankas A.. Emekli Sand Vakf (bank 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 Reasrans T.A.., 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
31 December 2014
(5,397,570)
2,433,204
(2,964,366)
31 December 2013
(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)
31 December 2014
31 December 2013
243,003
116,934
50,101
410,038
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 77,970 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 "Trkiye Bankas A.. Mensuplar Munzam Sosyal Gvenlik
ve Yardmlama Sand Vakf" ("bank Supplementary Pension Fund"), which was founded as per the provisions of the
Turkish Commercial and Civil Codes, regarding the payments that fulfill bank's liabilities within the framework of the
Articles of Foundation of the Pension Fund and the relevant legislation.
64
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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
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 as of reporting date TL 151,899 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 Banks 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 Gvenlik ve Yardmlama Sand Vakf
Mensuplar which is founded according to Turkish Commercial Law and Civil Law, owned by Trkiye Snai Kalknma
Bankas A., Milli Reasrans T.A., and Anadolu Anonim Trk Sigorta irketi. 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 companys 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 217,265 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 26,939 as at 30
September 2015 (30 September 2014: TL 32,017).
h.5.5. The Ministry of Customs and Trade initiated an investigation under Law No: 6502 and now-abolished Law No:
4077 and has imposed an administrative fine of TL 110,110 to the Bank pursuant to this investigation. The Bank paid TL
82,582, which is the amount calculated by benefiting from the discount within the framework of Article 17 of Misdemeanor
Law No: 5326, provided that the Bank reserves its right to litigate against the related decision and to claim for refund. The
Bank has filed a lawsuit in stanbul 11th Administrative Court for the cancellation of administrative fine imposed against
the Bank in due time. The court proceedings are not finalized as of reporting date.
h.5.6. 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 41,024 as at 30 September 2015.
i.1.2.
Information on taxes payable:
Current Period
41,024
138,426
3,117
119,572
72
25,017
52,863
380,091
Prior Period
436,879
125,373
3,284
119,006
48
7,126
47,709
739,425
65
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
i.1.3.
Information on premiums:
Current Period
Prior Period
1,692
1,451
2,395
1,724
2,674
1,626
1,283
1,173
2,601
2,330
Other
Total
i.2.
493
10,650
8,806
The Parent Bank and the consolidated Group companies have TL 6,187 deferred tax liability as at 30 September 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.
Current Period
Tangible Assets Base Differences
Prior Period
27,248
Provisions
6,576
(18,048)
636
Other
(3,649)
6,187
j.
j.1.
Common shares
Preferred shares
Total
6,576
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.
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.
66
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
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 Groups equity: The Parent
Banks 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.
j.8.
Despite having a lower nominal value, Group (B) shares, each with a nominal value of 1 Kurus, have the same rights with
the Group (C) shares having a nominal value of 4 Kurus each. Furthermore, Group (A) and (B) shares, each with a nominal
value of 1 Kurus are granted privileges in distribution of profits pursuant to Article 58 of the Articles of Incorporation.
j.9.
k.
Prior Period
FC
TL
FC
1,905,315
2,493,159
1,905,315
2,493,159
(1,515,868)
(1,899,326)
382,170
1,288
389,447
(367,228)
(368,773)
1,545
614,123
773,208
(159,085)
331,840
326,983
4,857
(367,228)
3,107,282
331,840
Prior Period
Paid-in Capital
2,389,312
2,178,829
Share Premium
5,405
5,405
166,391
283,476
216,340
(126)
(126)
Legal Reserves
248,676
222,904
49,792
47,837
299,832
316,281
(4,768)
(1,704)
617,621
490,184
Statutory Reserves
Extraordinary Reserves
Other Profit Reserves
Prior Years Profit / Loss
Current Year Profit/ Loss
Period Ending Balance
(1)
(1)
1,179
1,179
408,772
541,319
4,398,426
4,085,584
Difference between effective and direct shareholding rate was TL 63,035 in the current period (31 December 2014: TL 44,621).
67
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
l.
At the Parent Banks 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;
-
On 31 March 2015 TL 2,667,040 was transferred to reserves account and the cash dividend distribution was initiated on 1
April 2015.
68
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
III.
a.
a.1.
Commitment for customer credit card limits amounts to TL 21,141,118 and commitment to pay for cheque leaves amounts
to TL 5,939,254. The amount of commitment for the forward purchase of assets is TL 2,505,367 and for the forward sale
of assets is TL 2,493,728.
a.2.
The structure and amount of probable losses and commitments resulting from off-balance sheet items, including
those below:
As at 30 September 2015, the Groups provisions for indemnified non-cash loans balance is TL 74,072 (31 December 2014:
TL 66,882) which is allocated for the non-cash loans of companies whose loans are followed under Non-performing
Loans accounts. 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
Bank Acceptances
Prior Period
1,971,146
1,229,731
Letters of Credit
13,554,136
7,763,406
Other Guarantees
1,301,565
1,020,610
16,826,847
10,013,747
Total
a.4.
Prior Period
805,121
930,188
27,739,876
24,059,778
6,201,981
4,670,054
3,690,858
3,182,599
3,383,201
1,806,947
41,821,037
34,649,566
Total
a.5.
4,452,197
Prior Period
2,042,714
1,085,278
552,349
3,366,919
1,490,365
54,195,687
42,620,599
Total
58,647,884
44,663,313
69
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
a.6.
Group II
FC
TL
FC
Non-cash Loans
20,768,494
37,553,205
175,813
150,372
Letters of Guarantee
175,813
148,753
20,419,876
21,076,595
Bank Acceptances
8,604
1,961,008
1,534
Letters of Credit
6,845
13,547,206
85
35,899
10,860
297,270
957,536
Endorsements
Underwriting Commitments of the Securities Issued
Factoring Related Guarantees
Other Guaranties and Warranties
b.
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 7,010,187.
The cheques given to customers is presented under off balance sheet commitments, as per the related regulations is
amounting to TL 5,939,254, 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.
70
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
IV.
a.
Interest Income
a.1.
a.2.
Prior Period
TL
FC
2,836,945
6,314,832
116,138
244,290
2,553,246
706
2,609,283
4,830,290
117,222
244,246
1,903,815
3,177
9,267,915
2,798,242
7,556,795
2,151,238
a.3.
Prior Period
TL
135,425
3,160
47,836
4,696
72,330
3,298
53,426
3,306
138,585
52,532
75,628
56,732
Prior Period
FC
TL
FC
54,521
117
92,068
353
2,500,213
438,166
2,006,065
252,583
45,922
1,573
651,360
292
2,600,656
439,856
2,749,493
253,228
a.4.
FC
b.
Interest Expense
b.1.
Banks
Central Bank of Turkey
Domestic Banks
Foreign Banks
Foreign Head Offices and Branches
Other Institutions
Total (1)
Prior Period
969
Current Period
TL
FC
341,942
328,003
152
120,108
19,562
221,834
308,289
341,942
193,046
521,049
2,997
Prior Period
TL
FC
248,516
183,922
12
104,087
14,625
144,429
169,285
248,516
118,133
302,055
(1)
71
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
b.2.
b.3.
Prior Period
12,705
b.4.
Prior Period
TL
FC
407,878
349,104
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
104
100,600
41,363
Savings Deposits
124,369
2,559,735
2,286
3,119
140,543
11
Commercial Deposits
Other Institutions
Deposits
Deposits with 7 Days
Notice
Total
439
217
142,723
83,150
25,541
22,620
164
19
5,591
424,657
16,954
4,601
1,747
588,503
16,307
238,722
41,692
200
87
297,019
119
384,105
3,267,596
141,960
30,800
24,672
95
3,849,347
933
73,887
456,683
58,047
24,715
139,378
753,648
376
14,284
11,556
2,368
3,368
14,758
46,710
1,388
101
1,490
95
2,815,511
FC
Foreign Currency
Deposits
Bank Deposits
Deposits with 7 Days
Notice
Precious Metals
Deposits
Total
1,309
88,171
468,240
60,415
29,471
154,237
801,848
Grand Total
1,428
472,276
3,735,836
202,375
60,271
178,909
100
4,651,195
c.
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
117,357,730
2,632,777
5,443,380
109,281,573
117,657,106
2,260,137
5,488,147
109,908,822
(299,376)
Prior Period
69,215,873
1,195,366
3,794,767
64,225,740
68,821,750
932,953
4,404,321
63,484,476
394,123
Income arising from foreign currency changes related to derivative transactions amounting TL 3,796,588, and the losses amounting TL 3,846,801 and
the amount of net loss is TL 50,213 (30 September 2014 profit: TL 2,768,048; loss: TL 3,498,412).
72
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
d.
As at reporting period, TL 3,044,527 of other operating income sources from inclusion and classification of operations of
insurance and reinsurance companies; 91% of which is from insurance premiums (30 September 2014: TL 2,637,699, 94%).
Other operating income consist of provision reversals related to Trkiye Bankas A.. Mensuplar Munzam Sosyal
Gvenlik ve Yardmlama Sand Vakf 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.
Prior Period
1,070,373
763,033
147,216
100,168
397,785
275,505
525,372
387,360
553,577
328,257
Expenses(1)
100,000
17,628
6,803
10,484
2,920
7,144
3,883
291
291
Subsidiaries
Jointly Controlled Entities
Investments Held to Maturity
Other
128,704
101,329
Total
1,770,282
1,299,713
In the calculation of general provisions, provisional article 8 of the Regulation on the Procedures and Principles for Determination of
Qualifications of Loans and Other Receivables by Banks and Provisions to be Set Aside is taken into consideration.
(1)
73
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
f.
Personnel Expenses(1)
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 to be Disposed
Depreciation Expenses of Assets to be Disposed
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(2)
Other
Total
Current Period
2,320,094
59,893
Prior Period
2,223,766
52,005
7,085
180,844
180,267
149,504
104,277
2,812
3,905
2,333
4,877
1,507,471
237,208
72,590
162,533
1,035,140
157,302
3,468,019
7,856,929
1,301,958
195,811
27,008
127,293
951,846
272,208
2,797,246
6,938,937
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 155,084 of the related item includes the sale loss of Groups stake in Avea letiim Hizmetleri A.. to Trk Telekomnikasyon
A..
(1)
(2)
On the table above, TL 2,590,352 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.
(30 September 2014: TL 2,146,362) Furthermore, expenses in Other group in the current period TL 191,751 of the related
item is due to the expenses incurred as a result of the return of the loan commission income recognized in prior years, TL
82,583 is due to the administrative fine which was paid to the Custom and Trade Ministry, detailed in the Section Five Note
II-h.5.5. and TL 204,422 is due to taxes, duties, charges and funds.
g.
Information on provision for taxes including taxes from continuing and discontinued operations
As at 30 September 2015 the amount of the Groups tax provision is TL 655,620 and the amount consists of current tax
expense that is amounting to TL 100,029 and consists of deferred tax income amounting TL 555,591.
h.
h.1.
Income and expense resulting from ordinary banking activities: There is no specific issue required to be disclosed
for the Groups performance for the period between 1 January 2015 30 September2015.
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.
Current Period
345,737
Prior Period
280,035
74
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
V.
a.
Information on the volume of transactions relating to the Groups risk group, incomplete loan and deposit
transactions and periods profit and loss:
Information on loans held by the Groups risk group:
a.1.
Current Period:
Investments in Associates,
Subsidiaries and Jointly
Controlled Entities (Joint
Ventures)
Cash
Non-Cash
1,228
1,490,797
443,998
237,884
395
1,770,860
357,048
272,961
989
117
31,280
982
Prior Period:
Investments in Associates,
Other Real Persons and
Subsidiaries and Jointly
Direct and Indirect
Corporate Bodies that have
Controlled Entities (Joint Shareholders of the Bank been Included in the Risk
Ventures)
Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
a.2.
15,375
1,426,296
553,135
246,217
1,228
1,490,797
443,998
237,884
3,721
394
22,033
944
Investments in Associates,
Subsidiaries and Jointly
Controlled Entities (Joint
Ventures)
Current
Prior
Period
Period
Deposits
Balance at the beginning of the period
523,900
391,051
206,316
352,420
2,469,021
1,625,580
699,847
523,900
259,558
206,316
3,017,447
2,469,021
17,575
12,504
24,186
24,660
58,342
35,939
75
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
a.3.
Information on forward and option and other similar agreements made with the Groups risk group:
Investments in
Other Real Persons and
Associates, Subsidiaries
Direct and Indirect
Corporate Bodies that
and Jointly Controlled Shareholders of the Bank have been Included in the
Entities (Joint Ventures)
Risk Group
Current
Current
Current
Prior Period
Prior Period
Prior Period
Period
Period
Period
40,305
101,628
(1,026)
4,095
b.
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 0.18%, while the ratio to the overall assets is 0.11% the ratio of deposits of the risk group corporations to
the overall deposits is 2.52%, while the ratio to overall liabilities is 1.21%. The same pricing policy with third parties is
used for the financial services provided to companies in the Parent Banks 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 Banks branches act as agents for Anadolu Anonim Trk Sigorta irketi and Anadolu Hayat Emeklilik A..
Furthermore, through its branches the Bank also acts as agent for Yatrm Menkul Deerler A.. and Portfy Ynetimi
A.. all mutual funds which were founded by the Bank and managed by Portfy Ynetimi A.., has been transferred to
Portfy Ynetimi A.. on 9 July 2015 as per Capital Market Law numbered 6362. Within the context of same law, mutual
funds established by Yatrm Menkul Deerler A.. and Yatrm Finansman Menkul Deerler A.. are also transferred
to Portfy Ynetimi A.. 22 mutual funds which are founded by the Anadolu Hayat Emeklilik A.. are managed by
Portfy Ynetimi A..
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 53,719 (30 September 2014:
TL 48,027).
76
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
77
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
I.
Outlook (1)
Baa3
Negative
Baa3
Negative
Baa3
Negative
P-3
P-3
BBB-
Stable
BBB-
Stable
F3
F3
AA+ (tur)
Stable
Viability Rating
bbb-
Support Rating
BB+
Negative
trAA+
trA-1
Explanation
MOODYS
It is the highest rating in this category determined
ceiling of Turkey.
Indicates that the Banks credibility is adequate.
Indicates that the Banks credibility is adequate.
The Highest rating depending on the country ceiling
for Turkey in this category.
Indicates that the Banks credibility is moderate.
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
The dates below given are on which the Parent Banks credit ratings/outlook was last updated:
Moody's: 29 September 2015, Fitch Ratings: 16 June 2015, 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.
78
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
Outlook
MOODYS
Baseline Credit Assessment
Ba2
Baa3
Negative
P-3
Baa3
Negative
P-3
Baa3
Negative
FITCH RATINGS
Long-term Foreign Currency Issuer Default Rating
BBB-
Stable
BBB
Stable
F3
F3
AAA
Stable
Support Rating
Support Rating
BBB-
BBB-
National Rating
The dates below given are on which the TSKBs credit ratings were last updated:
Moody's: 23 October 2015, Fitch Ratings: 15 October 2015.
Finansal Kiralama A..
Rating
Outlook
BBB-
Stable
BBB-
Stable
F3
F3
AA+ (tur)
Stable
FITCH RATINGS
The date below given is on which the credit ratings of Finansal Kiralama A.. were last updated:
Fitch Ratings: 10 July 2015
79
TRKYE BANKASI A
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2015
(Amounts expressed in thousands Turkish Lira (TL) unless otherwise stated.)
The Parent Banks consolidated interim financial information and footnotes to be disclosed to public as at 30 September
2015 are reviewed by Akis Bamsz Denetim ve Serbest Muhasebeci Mali Mavirlik Anonim irketi (the Turkish member
firm of KPMG International Cooperative, a Swiss entity) and the Auditors Review Report dated 9 November 2015, is
presented in the introduction of this report.
II.
There are no significant issues or necessary disclosures or notes in relation to the Groups operations other than those
mentioned above.
80