INTRODUCTION
ACTIVITIES
CORPORATE GOVERNANCE
FINANCIAL INFORMATION AND RISK MANAGEMENT
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements for the Year Ended
31 December 2012
193
İŞBANK
ANNUAL REPORT 2012
Page
SECTION I
General Information about the Parent Bank
I.
Explanations on the Establishment Date and Initial Status of the Parent Bank, and History Including the Changes in the Former Status
194
II.
Explanations on the Capital Structure, Shareholders who Directly or Indirectly, Solely or Jointly Undertake the Management and Control of the Parent Bank,
any Changes in the Period, and Information on the Bank’s Risk Group
194
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
194
IV.
Explanation on the Parent Bank’s Qualified Shareholders
195
V.
Summary Information on the Parent Bank’s Functions and Business Lines
195
VI.
Differences between the Communiqué on Preparation of Consolidated Financial Statements of Banks and Turkish Accounting Standards and
Explanation about the Institutions Subject to Line-By-Line Method or Proportional Consolidation and Institutions which are Deducted from Equity or
not Included in These Three Methods
195
VII.
Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholder’s Equity Between the Parent Bank and its Subsidiaries or
the Reimbursement of Liabilities
197
VIII.
Written Policies on Assessment of Ensuring Compliance on Market Discipline, Disclosure Obligations, Frequency and Accuracy of Related Disclosures
197
SECTION II
Consolidated Financial Statements
I.
Consolidated Balance Sheet (Statement of Financial Position) – Assets
198
II.
Consolidated Balance Sheet (Statement of Financial Position) – Liabilities and Equity
199
III.
Consolidated Off-Balance Sheet Items
200
IV.
Consolidated Income Statement
202
V.
Consolidated Statement of Income and Expense Items Accounted under Shareholders’ Equity
203
VI.
Consolidated Statement of Changes in the Shareholders’ Equity
204
VII.
Consolidated Statement of Cash Flows
206
VIII.
Statement of Profit Distribution Table
207
SECTION III
Explanations on Accounting Policies
I.
Basis of Presentation
208
II.
Strategy for Use of Financial Instruments and on Foreign Currency Transactions
208
III.
Explanation on the Consolidated Companies
209
IV.
Forward, Options and Other Derivative Transactions
210
V.
Interest Income and Expenses
210
VI.
Fee and Commission Income and Expenses
210
VII.
Financial Assets
210
VIII.
Impairment of Financial Assets
212
IX.
Offsetting Financial Instruments
212
X.
Sale and Repurchase Agreements and Securities Lending Transactions
212
XI.
Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
213
XII.
Goodwill and Other Intangible Assets
213
XIII.
Tangible Assets
213
XIV.
Investment Property
214
XV.
Leasing Transactions
214
XVI.
Insurance Technical Income and Expense
214
XVII.
Insurance Technical Reserves
214
XVIII. Provisions and Contingent Liabilities
215
XIX.
Contingent Assets
215
XX.
Liabilities Regarding Employee Benefits
215
XXI.
Taxation
216
XXII.
Borrowings
218
XXIII. Equity Shares and Issuance of Equity Shares
218
XXIV. Bank Acceptances and Bills of Guarantee
218
XXV.
Government Incentives
218
XXVI. Segment Reporting
219
XXVII. Other Disclosures
219
SECTION IV
Information on the Financial Position and Risk Management of the Group
I.
Explanations on Consolidated Capital Adequacy Ratio
219
II.
Explanations on Consolidated Credit Risk
223
III.
Explanations on Consolidated Market Risk
231
IV.
Explanations on Consolidated Operational Risk
233
V.
Explanations on Consolidated Currency Risk
233
VI.
Explanations on Consolidated Interest Rate Risk
236
VII.
Explanations on Equity Shares Risk Arising from Banking Book
240
VIII.
Explanations on Consolidated Liquidity Risk
241
IX.
Explanations on Securitization Positions
244
X.
Explanations on Credit Risk Mitigation Techniques
244
XI.
Explanations on Risk Management Objectives and Policies
244
XII.
Explanations on Other Price Risk
245
XIII.
Explanations on Presentation of Assets and Liabilities at Fair Value
246
XIV.
Explanations on Transactions Carried Out on Behalf of Third Parties and Fiduciary Transactions
247
XV.
Explanations on Consolidated Business Segmentation
247
SECTION V
Disclosures and Footnotes on the Consolidated Financial Statements
I
Disclosures and Footnotes on Consolidated Assets
250
II.
Disclosures and Footnotes on Consolidated Liabilities
266
III.
Disclosures and Footnotes on Consolidated Off-Balance Sheet Items
273
IV.
Disclosures and Footnotes on the Consolidated Income Statement
276
V.
Disclosures and Footnotes on Consolidated Statement of Changes in Shareholders’ Equity
280
VI.
Disclosures and Footnotes on the Consolidated Statement of Cash-Flows
280
VII.
Disclosures and Footnotes on the Group’s Risk Group
281
VIII.
Disclosures on the Group’s Domestic, Foreign, Off-Shore Branches or Participations and Representative Offices
282
IX.
Subsequent Events
283
SECTION VI
Other Explanations
I
Explanation on the Group’s Credit Ratings
284
II.
Explanations on Special Purpose Audit and Public Audit
285
SECTION VII
Explanations on the Independent Auditors’ Report
I.
Explanations on the Independent Auditors’ Report:
285
II.
Explanations and Footnotes of the Independent Auditors
285
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