Türkiye İş Bankası A.Ş.
Notes to the Unconsolidated Financial Statements
for the Year Ended 31 December 2015
120 İşbank
Annual Report 2015
Information on currency risk:
Current Period
EUR
USD
Other FC
Total
Assets
Cash (Cash in Vault, Foreign Currency Cash, Money in Transit, Cheques Purchased) and Balances with
the Central Bank of Turkey
5,172,455
18,265,405
4,926,286
28,364,146
Banks
225,647
476,490
727,476
1,429,613
Financial Assets at Fair Value through Profit/Loss
(1)
131,451
765,630
897,081
Money Market Placements
Financial Assets Available for Sale
939,980
8,848,141
9,788,121
Loans
(2)
20,869,874
46,040,244
2,126,321
69,036,439
Investments in Associates, Subsidiaries and Jointly Controlled Entities (Joint Ventures)
285,945
270,594
556,539
Held to Maturity Investments
52,773
23,250
39,082
115,105
Derivative Financial Assets Held for Risk Management
Tangible Assets
(1)
868
247
1,385
2,500
Intangible Assets
(1)
Other Assets
(1)
641,096
974,690
12,585
1,628,371
Total Assets
28,320,089 75,394,097
8,103,729 111,817,915
Liabilities
Banks Deposits
2,127,148
3,784,552
633,254
6,544,954
Foreign Currency Deposits
(3)
24,551,380
44,007,369
5,468,718
74,027,467
Money Market Funds
198,881
2,843,328
3,042,209
Funds Provided from Other Financial Institutions
7,237,101
18,509,415
10,040
25,756,556
Debt Securities Issued
(4)
1,114,707
16,344,986
22,884
17,482,577
Miscellaneous Payables
171,403
162,435
213,232
547,070
Derivative Financial Liabilities Held for Risk Management
Other Liabilities
(1)
221,644
637,310
31,340
890,294
Total Liabilities
35,622,264 86,289,395
6,379,468 128,291,127
Net Balance Sheet Position
(7,302,175)
(10,895,298)
1,724,261 (16,473,212)
Net Off Balance Sheet Position
3,025,376 13,256,177 (2,145,684)
14,135,869
Derivative Financial Assets
(5)
6,740,759
24,526,672
2,426,212
33,693,643
Derivative Financial Liabilities
(5)
3,715,383
11,270,495
4,571,896
19,557,774
Non-Cash Loans
8,515,440
20,770,670
1,173,431
30,459,541
Prior Period
Total Assets
21,419,488
61,330,004
6,408,087
89,157,579
Total Liabilities
29,302,051
63,165,621
5,938,857
98,406,529
Net Balance Sheet Position
(7,882,563)
(1,835,617)
469,230 (9,248,950)
Net Off Balance Sheet Position
4,449,669
2,647,966 (1,441,280)
5,656,355
Derivative Financial Assets
9,006,701
12,848,651
765,352
22,620,704
Derivative Financial Liabilities
4,557,032
10,200,685
2,206,632
16,964,349
Non-Cash Loans
7,782,686
16,465,152
903,174
25,151,012
(1)
In accordance with the principles of the “Regulation on Measurement and Practices of Banks’ Net Overall FC Position / Shareholders’ Equity Ratio on a Consolidated and Unconsolidated Basis”, Foreign Currency
Income Accruals of Derivative Financial Instruments (TL 250,816), Operating Lease Development Costs (TL 7,577), Intangible assets (TL 354), Deferred Tax Asset (TL 330), Prepaid Expenses (TL 35,749) in assets and
Foreign Currency Expense Accruals of Derivative Financial Instruments (TL 399,643), General Provision (TL 9,712) and Shareholders’ Equity (TL 55,523) in liabilities are not included.
(2)
Foreign currency indexed loans amounting TL 5.134.345 presented in TL loans in the balance sheet are included in the table above. TL 2,630,254 is USD indexed, TL 2,473,356 is EUR indexed, TL 7,940 is CHF
indexed, TL 5,306 is GBP indexed, TL 17,481 is JPY indexed and TL 8 is CAD indexed.
(3)
Precious metals deposit accounts amounting TL 1,906,169 are included.
(4)
Includes Tier 2 subordinated bonds which are classified on the balance sheet as subordinated loans.
(5)
Located in the Regulation mentioned above and forward foreign exchange purchase and sale commitments are taken into account derivative instruments within the scope of the definition.
VI. Explanations on Interest Rate Risk
Interest rate risk is the risk that the value of the Bank’s interest sensitive assets, liabilities and off-balance sheet operations will decrease because of change in market interest rates.
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 Bank’s 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 Bank’s 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.
Interest rate sensitivity:
In this part, the sensitivity of the Bank’s assets and liabilities to the interest rates has been analyzed assuming that the year end balance figures were the same throughout the year.
Mentioned analysis shows how the FC and TL changes in interest rates by one point during the one-year period affect the Bank’s income accounts and shareholders’ equity under the
assumption maturity structure and balances are remain the same all year round at the end of the year.
During the measurement of the Bank’s interest rate sensitivity, the profit/loss on the asset and liability items that are evaluated with market value are determined by adding to/
deducting from the difference between the expectancy value of the portfolio after one year in case there is no change in interest rates and the value of the portfolio one year later,
which is measured after the interest shock, the interest income to be additionally earned/to be deprived of during the one year period due to the renewal or repricing of the related
portfolio at the interest rates formed after the interest shock.
On the other hand, in the profit/loss calculation of assets and liabilities that are not evaluated by the current market prices, it is assumed that assets and liabilities with fixed interest
rates will be renewed at maturity date and the assets and liabilities having variable interest rates will be renewed at the end of repricing period with the market interest rates
generated after the interest shock.
