INTRODUCTION
ACTIVITIES
CORPORATE GOVERNANCE
FINANCIAL INFORMATION AND RISK MANAGEMENT
105
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements for the Year Ended
31 December 2012
İŞBANK
ANNUAL REPORT 2012
Page
SECTION I
General Information about the Bank
I.
Explanations on the Establishment Date and Initial Status of the Bank, History Including the Changes in the Former Status
106
II.
Explanations on the Capital Structure, Shareholders who Directly or Indirectly, Solely or Jointly Undertake the Management and Control of the Bank,
any Changes in the Period, and Information on the Bank’s Risk Group
106
III.
Explanations on the Chairman’s, Directors’, Auditors’, Chief Executive Officer’s and Deputy Chief Executives’ Shares, if any, and the Areas of their Responsibility
at the Bank
106
IV.
Information on the Bank’s Qualified Shareholders
107
V.
Summary Information on the Bank’s Activities and Services
107
VI.
Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholders’ Equity Between the Bank and its Subsidiaries or the Reimbursement of Liabilities
107
VII.
Written Policies on Assessment of Ensuring Compliance on Market Discipline, Disclosure Obligations, Frequency and Accuracy of the Related Disclosures
107
SECTION II
Unconsolidated Financial Statements
I.
Unconsolidated Balance Sheet (Statement of Financial Position) – Assets
108
II.
Unconsolidated Balance Sheet (Statement of Financial Position) – Liabilities and Equity
109
III.
Unconsolidated Statement of Off-Balance Sheet Items
110
IV.
Unconsolidated Income Statement
112
V.
Unconsolidated Statement of Income and Expense Items Accounted under Shareholders’ Equity
113
VI.
Unconsolidated Statement of Changes in the Shareholders’ Equity
114
VII.
Unconsolidated Statement of Cash Flows
116
VIII.
Statement of Profit Distribution Table
117
SECTION III
Explanations on Accounting Policies
I.
Basis of Presentation
118
II.
Strategy for Use of Financial Instruments and Foreign Currency Transactions
118
III.
Associates and Subsidiaries
119
IV.
Forward and Option Contracts and Derivatives Instruments
119
V.
Interest Income and Expenses
119
VI.
Fees and Commission Income and Expenses
119
VII.
Financial Assets
119
VIII.
Impairment of Financial Assets
120
IX.
Offsetting Financial Instruments
121
X.
Sale and Repurchase Agreements and Securities Lending Transactions
121
XI.
Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
121
XII.
Goodwill and Other Intangible Assets
121
XIII.
Tangible Assets
122
XIV.
Leasing Transactions
122
XV.
Provisions and Contingent Liabilities
122
XVI.
Contingent Assets
123
XVII.
Liabilities Regarding Employee Benefits
123
XVIII. Taxation
124
XIX.
Borrowings
125
XX.
Equity Shares and Issuance of Equity Securities
125
XXI.
Bank Acceptances and Bills of Guarantee
125
XXII.
Government Incentives
125
XXIII. Segment Reporting
126
XXIV. Other Disclosures
126
SECTION IV
Information on the Financial Position and Risk Management of the Bank
I.
Explanations on Capital Adequacy Standard Ratio
126
II.
Explanations on Credit Risk
129
III.
Explanations on Market Risk
137
IV.
Explanations on Operational Risk
139
V.
Explanations on Currency Risk
139
VI.
Explanations on Interest Rate Risk
142
VII.
Explanations on Equity Shares Risk Arising from Banking Book
146
VIII.
Explanations on Liquidity Risk
146
IX.
Explanations on Securitization Positions
150
X.
Explanations on Credit Risk Mitigation Techniques
150
XI.
Explanations on Risk Management Objectives and Policies
150
XII.
Explanations on Other Price Risks
151
XIII.
Explanations on the Presentation of Assets and Liabilities at Fair Value
151
XIV.
Explanations on Transactions Carried Out on Behalf of Third Parties and Fiduciary Transactions
153
XV.
Explanations on Segment Reporting
153
SECTION V
Disclosures and Footnotes on the Unconsolidated Financial Statements
I.
Disclosures and Footnotes on Assets
156
II.
Disclosures and Footnotes on Liabilities
172
III.
Disclosures and Footnotes on Off - Balance Sheet Items
179
IV.
Disclosures and Footnotes on Income Statement
181
V.
Disclosures and Footnotes on Statement of Changes in Shareholders’ Equity
185
VI.
Disclosures and Footnotes on Statements of Cash Flows
185
VII.
Disclosures and Footnotes on the Bank’s Risk Group
185
VIII.
Disclosures on the Bank’s Domestic, Foreign, Off-Shore Branches or Associates and Foreign Representative Offices
188
IX.
Subsequent Events
188
SECTION VI
Other Explanations
I.
Explanations on the Bank’s Credit Ratings
189
II.
Explanations on Special Purpose Audit and Public Audit
189
SECTION VII
Explanations on the Independent Auditors’ Report
I.
Explanations on the Independent Auditors’ Report
189
Ii.
Explanations and Footnotes of the Independent Auditors
189
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