Türkiye İş Bankası A.Ş.
Notes to the Unconsolidated Financial Statements
for the Year Ended 31 December 2015
121
Financial Information and Risk Management
Within this context, ceteris paribus, the possible changes that may occur in the Bank’s profit and shareholders’ equity in case of 100 basis point increase/decrease in TL and FC interest
rates on the reporting day are given below.
%Change in the Interest Rate
(1)
Effect On Profit/Loss
(2)
Effect on Equity
(3)
TL
FC
(4)
Current Period
Prior Period
Current Period
Prior Period
100 bp increase
100 bp increase
(105,340)
(227,340)
(693,101)
(707,204)
100 bp decrease
100 bp decrease
128,356
268,144
760,826
769,977
(1)
Changes in interest rates is calculated assuming that the expectations reflected in inflation. The effects on the profit/loss and shareholders’ equity are stated with their before tax values.
(2)
The effect on the profit/loss is mainly arising from the fact that the average maturity of the Bank’s fixed rate liabilities is shorter than the average maturity of its fixed rate assets.
(3)
The effect on the shareholders’ equity is arising from the change of the fair value of securities followed under Financial Assets Available for Sale.
(4)
Due to the reason that the LIBOR rates were at low levels in both of the periods, the negative shock imposed on FC interest rates in some maturity brackets remained below the aforementioned rates.
a. Interest rate sensitivity of assets, liabilities and off balance sheet items
(Based on repricing dates):
Current Period
Up to
1 Month 1-3 Months 3-12 Months
1-5 Years
5 Years and
Over
Non-interest
Bearing
Total
Assets
Cash (Cash in Vault, Foreign Currency Cash, Money in
Transit, Cheques Purchased) and Balances with the
Central Bank of Turkey
19,281,837
12,370,688 31,652,525
Banks
559,516
141,495
72,691
13,804
59,449
670,546
1,517,501
Financial Assets at Fair Value through Profit/Loss
408,093
326,874
615,664
173,515
10,524
57,628
1,592,298
Money Market Placements
Financial Assets Available for Sale
4,072,416 6,903,823
8,314,485 11,046,441
10,183,591
339,604 40,860,360
Loans
41,875,386 20,973,748 36,666,950 60,952,248 17,420,782
44,642 177,933,756
Held to Maturity Investments
1,633,406
161,270
1,784,823
12,132
3,591,631
Other Assets
377,760
18,191,753 18,569,513
Total Assets
68,208,414 28,507,210 47,454,613 72,198,140 27,674,346 31,674,861 275,717,584
Liabilities
Banks Deposits
3,954,293
1,143,285
1,741,926
874,677
7,714,181
Other Deposits
73,645,321
27,867,558 8,048,877
2,723,943
33,802,546 146,088,245
Money Market Funds
18,582,117
547,128
959,902
20,089,147
Miscellaneous Payables
81,852
6,768,529
6,850,381
Marketable Securities Issued
(1)
2,180,419 4,007,423
3,670,676
7,775,296
6,174,448
23,808,262
Funds Provided from Other Financial Institutions
2,768,416 18,551,447
5,115,717
279,506
1,693,413
28,408,499
Other Liabilities
(2)
358,135
213,334
289,413
75,013
41,822,974 42,758,869
Total Liabilities
101,570,553 52,330,175 19,826,511 10,853,758 7,867,861 83,268,726 275,717,584
Balance Sheet Long Position
27,628,102 61,344,382 19,806,485
108,778,969
Balance Sheet Short Position
(33,362,139)
(23,822,965)
(51,593,865) (108,778,969)
Off Balance Sheet Long Position
1,752,316 2,988,250
4,740,566
Off Balance Sheet Short Position
(1,601,985)
(1,366,648)
(1,432,500)
(4,401,133)
Total Position
(31,609,823) (20,834,715)
26,026,117 59,977,734 18,373,985 (51,593,865)
339,433
(1)
Includes Tier 2 subordinated bonds which are classified on the balance sheet as subordinated loans.
(2)
Shareholders’ equity is included in “non-interest bearing” column.
