FINANCIAL INFORMATION AND RISK MANAGEMENT
ANNUAL REPORT 2012
Convenience Translation of the Independent Auditors’ Report
Originally Prepared and Issued in Turkish (See Note 1 in Section Three)
To the Board of Directors of Türkiye İş Bankası AŞ;
We have audited the unconsolidated balance sheet of Türkiye İş Bankası AŞ (“the Bank”) as of 31 December 2012 and the unconsolidated
statements of income, cash flows and changes in shareholders’ equity for the year then ended and a summary of significant accounting
policies and notes to the financial statements.
The Board of Directors of the Bank is responsible for designing, implementing and maintaining internal control relevant to the preparation
and fair presentation of the unconsolidated financial statements that are free frommaterial misstatement, whether due to error or fraud;
and for selecting and applying appropriate accounting policies in accordance with the “Regulation on Accounting Applications for Banks
and Safeguarding of Documents” published on the Official Gazette numbered 26333 on 1 November 2006, Turkish Accounting Standards,
Turkish Financial Reporting Standards and the other regulations, communiqués and circulars in respect of accounting and financial reporting
made by the Banking Regulation and Supervision Board and the pronouncements made by the Banking Regulation and Supervision Agency.
Our responsibility, as independent auditors, is to express an opinion on these financial statements based on our audit. Our audit is
performed in accordance with the “Regulation on the Assignment and Activities of the Banks’ Independent Audit Firms” published on
the Official Gazette no. 26333 dated 1 November 2006 and international standards on auditing. We planned and conducted our audit to
obtain reasonable assurance as to whether the financial statements are free of material misstatement. Our audit includes using the audit
techniques for the purpose of obtaining evidence supporting the amounts and disclosures in the financial statements. The selection of the
audit techniques is made in accordance with our professional judgment by taking the effectiveness of the controls over financial reporting
into consideration and assessing the appropriateness of the applied accounting policies. We believe that our audit provides a reasonable
basis for our audit opinion.
The accompanying unconsolidated financial statements as of 31 December 2012 include a general provision amounting to TL 1,000,000
thousands, TL 950,000 thousands of which had been recognized as expense in the prior periods and TL 50,000 thousands of which
was charged to the income statement as expense in the current period, provided by the Bank management for the possible result of the
negative circumstances which may arise from any changes in economy or market conditions.
In our opinion, except for the effect of the matter described in the fourth paragraph above on the unconsolidated financial statements,
the accompanying unconsolidated financial statements present fairly, in all material respects, the financial position of Türkiye İş Bankası
AŞ as of 31 December 2012 and the result of its operations and cash flows for the year then ended in accordance with the prevailing
accounting principles and standards set out as per the existing regulations described in Article 37 of the Banking Act No: 5411 and the
other regulations, communiqués and circulars in respect of accounting and financial reporting and pronouncements made by the Banking
Regulation and Supervision Board and the pronouncements made by the Banking Regulation and Supervision Agency..
14 February 2013
Akis Bağımsız Denetim ve Serbest
Muhasebeci Mali Müşavirlik
Partner, Certified Public Accountant
Additional paragraph for convenience translation to English:
As explained in Note I in Section Three, the accompanying financial statements are not intended to present the financial position and results
of operations in accordance with the accounting principles and practices generally accepted in countries and jurisdictions other than Turkey.
Akis Bağımsız Denetim ve Serbest
Muhasebeci Mali Müşavirlik A.Ş.
Kavacık Rüzgarlı Bahçe Mah.
Kavak Sok. No: 3
Beykoz 34805 İstanbul
Telephone +90 (216) 681 90 00
+90 (216) 681 90 90