Türkiye İş Bankası A.Ş.
Notes to the Unconsolidated Financial Statements
for the Year Ended 31 December 2015
130 İşbank
Annual Report 2015
XII. Explanations on Leverage Ratio
a. Explanations on Differences Between Current and Prior Years’ Leverage Ratios
The Bank’s unconsolidated leverage ratio is calculated in accordance with the principles of the “Regulation on Measurement and Evaluation of Banks’ Leverage Level”. As of 31
December 2015, the Bank’s leverage ratios is 8.50% (31 December 2014: 9.15%). Change of leverage ratio is mainly related to increase in the amount of risk on balance sheet items.
According to Regulation, the minimum leverage ratio is 3%.
b. Explanation on leverage ratio
Current Period
(1)
Prior Period
(1)
On-Balance Sheet Items
On-balance sheet items (excluding derivatives and SFTs, but including collateral)
276,020,449
232,624,506
Assets amounts deducted in determining Basel III Tier 1 capital
(453,159)
(368,656)
Total on balance sheet exposures
275,567,290
232,255,850
Derivative exposures and credit derivatives
Replacement cost associated with derivative financial instruments and credit derivatives
1,390,575
932,645
The potential amount of credit risk with derivative financial instruments and credit derivatives
747,653
520,975
The total amount of risk on derivative financial instruments and credit derivatives
2,138,228
1,453,620
Investment securities or commodity collateral financing transactions
The amount of risk investment securities or commodity collateral financing transactions (Excluding on balance sheet items)
3,653,168
3,939,599
Risk amount of exchange brokerage operations
Total risks related with securities or commodity financing transactions
3,653,168
3,939,599
Off -Balance Sheet Items
Gross notional amount of off-balance sheet items
105.599.526
89.082.925
Adjustments for conversion to credit equivalent amounts
(7,016,044)
(5,472,772)
The total risk of off-balance sheet items
98,583,482
83,610,153
Capital and Total Exposures
Tier 1 Capital
32,278,853
29,397,221
Total Exposures
379,942,168
321,259,222
Leverage Ratio
Leverage Ratio
8.50
9.15
(1)
Three-month average of the amounts in Leverage Ratio table.
XIII. Explanations on Other Price Risks
The Bank has investments in companies traded on the Borsa İstanbul A.Ş. is exposed to equity securities price risk. Shares are being acquired for investment purposes rather than.
The Bank’s sensitivity to equity price risk at the reporting date an analysis was conducted to measure. In the analysis, with the assumption of all other variables were held constant
(stock prices) are 10% higher or lower and is assumed that. According to this assumption in equity securities revaluation reserve account TL 750,093 (31 December 2014: TL 725,125)
increase/decrease is expected to be. This, in fact, the fair value of publicly traded subsidiaries and associates the increase/decrease is due. On the other hand, according to the
analysis carried out similar assumptions, held for trading securities that are traded in an active market (stock exchange) may have an impact on profit (+/-) TL 5,625.
XIV. Explanations on Presentation of Assets and Liabilities at Fair Value
1. Information on fair values of financial assets and liabilities
Book Value
Fair Value
Current Period
Prior Period
Current Period
Prior Period
Financial Assets
Money Market Placements
Banks
1,517,501
1,393,221
1,528,903
1,395,713
Financial Assets Available for Sale
40,860,360
39,289,961
40,860,360
39,289,961
Investments Held to Maturity
3,591,631
1,301,104
3,508,664
1,304,277
Loans
177,933,756
155,874,278
176,241,705
156,953,561
Financial Liabilities
Banks Deposits
7,714,181
6,397,382
7,706,168
6,398,642
Other Deposits
146,088,245
127,153,809
146,201,394
127,204,047
Funds Provided from Other Financial Institutions
28,408,499
20,669,163
28,306,644
20,599,089
Marketable Securities Issued
(1)
23,808,262
20,422,541
23,827,075
20,762,846
Miscellaneous Payables
6,850,381
5,508,091
6,850,381
5,508,091
(1)
Includes subordinated bonds which are classified on the balance sheet as subordinated loans.
Fair values of investments held to maturity securities issued is determined by using the market prices; in cases where market prices cannot be measured, quoted market prices of
other securities that are subject to amortization having similar interest, maturity and other conditions are taken as the basis for the fair value determination.
Market prices are taken into account in determining the fair values of the securities available for sale. When the prices cannot be measured in an active market, fair values are not
deemed to be reliably determined and amortized cost, calculated by the internal rate of return method, are taken into account as the fair values.
Fair values of banks, loans granted, deposits and funds borrowed from other financial institutions and marketable securities are calculated by discounting the amounts in each
maturity bracket formed according to repricing periods, using the rate corresponding to relevant maturity bracket in the discount curves based on current market conditions.
