banking sector. Similarly, funds obtained
from overseas maintained their strong
course over 2012 and preserved their
importance in the sector’s non-deposit
resources excluding shareholders’ equity.
It is important for the Turkish banking
industry to capitalize on alternative
resources, depending on the financial
situation, in terms of contributing to funding
resources diversification and improving
maturity mismatches. Consequently Turkey,
by demonstrating a strong performance
throughout 2012 when global economic
growth continued to decelerate, secured
a prominent place in preferred investment
destinations. The Turkish banking sector
monitored the means of access to overseas
resources and benefited from overseas
bonds issue opportunities to the maximum
extent possible.
IN 2012, İŞBANK MANAGED ITS
BALANCE SHEET COMPOSITION WITH A
PROACTIVE AND DYNAMIC APPROACH.
In 2012, İşbank shaped its balance sheet
management on a foundation of proactive
strategies in line with market developments
and expectations. Means of access to funds
and funding costs were addressed as a
whole while creating the most favorable
funding structure was observed as a basic
goal.
Developments in İşbank’s balance sheet
composition corresponded to that of the
sector in its entirety in 2012. While the
share of securities portfolio to asset items
declined from 26.5% at year-end 2011 to
21.7% in December 2012, the share of loans
rose to 60.8% from 56.7% in the same
12-month period.
On the liabilities items side, deposits
preserved their heavy weight with a 60.1%
share including interbank deposits and
58.3% excluding interbank deposits. Bank
bonds and bills issued in Turkish lira and
foreign currency increased their weight
within non-deposit funds. Within this
framework, the Bank issued bonds and
bills in the 6 months-1 year maturity range
with a total nominal value of TL 7.7 billion in
Turkey, and issued 5-year Eurobonds worth
USD 500 million and 10-year Subordinated
Bonds amounting to USD 1 billion.
FURTHER STRENGTHENED BALANCE
SHEET STRUCTURE THANKS TO
EFFECTIVE RISK MANAGEMENT
İşbank’s Treasury Division is also responsible
for managing securities investment
portfolios and FC positions, as well as for
effective liquidity management aimed at
making available the funds necessary for all
products and services offered through the
extensive branch network.
Treasury Division activities are executed in
accordance with the principles of the Bank’s
Asset-Liability Management Risk Policy and
the decisions taken by the Asset-Liability
Management Committee. Within this scope,
effective models are employed to monitor
the current and future risks that could
arise from the maturity, interest rate and
foreign currency composition of the balance
sheet, and the Bank makes use of derivate
products subject to the market conditions,
as well as money and capital market
instruments.
In 2012, the Bank pursued strategies to
prevent the expansion of maturity gaps in
TL and FC balance sheets in the context of
liquidity and structural interest rate ratios
set under the Asset-Liability Management
Risk Policy. Along these lines, Turkish lira
and foreign currency-denominated bonds
and bills issues were given weight, also as
a way of diversifying the Bank’s funding
instruments.
İŞBANK AND ITS ACTIVITIES IN 2012
IN 2012, THE BANK
PURSUED STRATEGIES TO
PREVENT THE EXPANSION
OF MATURITY GAPS IN
TL AND FC BALANCE
SHEETS IN THE CONTEXT
OF LIQUIDITY AND
STRUCTURAL INTEREST
RATE RATIOS SET UNDER
THE ASSET-LIABILITY
MANAGEMENT RISK POLICY.
48
İŞBANK
ANNUAL REPORT 2012
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