211
Financial Information and Risk Management
Türkiye İş Bankası A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2015
XII. Explanations on Leverage Ratio
a. Explanations on Differences Between Current and Prior Years’ Leverage Ratios
The Bank’s consolidated 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 consolidated Leverage ratio is 8.15 % (31 December 2014: 8.79%). 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. Summary Comparison Table Related to Total Amount of Asset and Risk Situated in The Consolidated Financial Statements Prepared in Accordance with IAS
Current Period
Prior Period
Summary Comparison Table Related to Total Amount of Asset and Risk Situated in The Consolidated Financial Statements
Prepared in Accordance with IAS
(1)
306,733,812
271,247,896
The difference between Total Amount of Asset in the Consolidated Financial Statements Prepared in Accordance with TAS and
the Communiqué on Preparation of Consolidated Financial Statements of Banks
(1)
(4,120,650)
(4,528,537)
The difference between total amount and total risk amount of derivative financial instruments with credit derivative in the
Communiqué on Preparation of Consolidated Financial Statements of Banks
(2)
(926,394)
(635,881)
The difference between total amount and total risk amount of risk investment securities or commodity collateral financing
transactions in the Communiqué on Preparation of Consolidated Financial Statements of Banks
(2)
16,795,730
17,134,659
The difference between total amount and total risk amount of off-balance sheet transactions in the Communiqué on
Preparation of Consolidated Financial Statements of Banks
(2)
10,520,442
7,640,453
The other differences between amount of assets and risk in the Communiqué on Preparation of Consolidated Financial
Statements of Banks
(2)
1,664,794
1,066,178
Total Exposures
(2)
434,732,094
364,501,427
(1)
Consolidated financial statements are prepared based on Article No 5 of Clause No 6 in the Communiqué on Preparation of Consolidated Financial Statements of Banks. As of reporting date, in the cause of
consolidated financial statements is not published yet, the amounts are represented in the table as of 30 June 2015 and 31 December 2014.
(2)
The amounts in the table represents the average of three months.
c. Explanations on consolidated leverage ratio
On-Balance Sheet Items
Current Period(1)
Prior Period (1)
On-balance sheet items (excluding derivatives and SFTs, but including collateral)
324,208,192
270,013,081
Asset amounts deducted in determining Basel III Tier 1 capital
(623,023)
(491,661)
The total amount of risk on-balance sheet exposures
323,585,169
269,521,420
Derivative exposures and credit derivatives
Replacement cost associated with derivative financial instruments and credit derivatives
2,589,786
1,711,436
The potential amount of credit risk with derivative financial instruments and credit derivatives
The total amount of risk on derivative financial instruments with credit derivatives
2,589,786
1,711,436
Investment securities or commodity collateral financing transactions
The amount of risk investment securities or commodity collateral financing transactions
(Excluding on balance sheet items)
4,187,584
4,249,272
Risk amount of exchange brokerage operations
The total amount of risk investment securities or commodity collateral financial transactions
4,187,584
4,249,272
Off -Balance Sheet Items
Gross notional amount for off-balance sheet items
114,813,709
96,592,816
Adjustments for conversion to credit equivalent amounts
(10,444,154)
(7,573,516)
The total amount of risk for off-balance sheet items
104,369,555
89,019,300
Capital and Total Exposures
Tier 1 Capital
35,408,706
32,062,982
Total Exposures
434,732,094
364,501,428
Leverage Ratio
Leverage Ratio
8.15
8.79
(1)
Three-month average of the amounts in Leverage Ratio table.
XIII. Explanations on Other Price Risk
The Group has investments in companies traded on the ISE 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 394,254 (31 December 2014: TL
403,209) 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 by similar assumptions, held for trading securities that are traded in an active market (stock exchange) may have an impact on profit (+/-) TL 7,949.
