Financial Information and Risk Management
100
İş Bankası
Annual Report 2013
Page
SECTION I
General Information about the Bank
I.
Explanations on the Establishment Date and Initial Status of the Bank, History Including the Changes in the Former Status
101
II.
Explanations on the Capital Structure, Shareholders who Directly or Indirectly, Solely or Jointly Undertake the Management and Control of the Bank, any Changes in the
Period, and Information on the Bank’s Risk Group
101
III.
Explanations on the Chairman’s, Directors’, Auditors’, Chief Executive Officer’s and Deputy Chief Executives’ Shares, if any, and the Areas of their Responsibility at the Bank 101
IV.
Information on the Bank’s Qualified Shareholders
102
V.
Summary Information on the Bank’s Functions and Business Lines
103
VI.
Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholders’ Equity between the Bank and its Subsidiaries or the Reimbursement of Liabilities
103
VII.
Written Policies on Assessment of Ensuring Compliance on Market Discipline, Disclosure Obligations, Frequency and Accuracy of the Related Disclosures
103
SECTION II
Unconsolidated Financial Statements
I.
Unconsolidated Balance Sheet (Statement of Financial Position) - Assets
104
II.
Unconsolidated Balance Sheet (Statement of Financial Position) - Liabilities and Equity
105
III.
Unconsolidated Statement of Off-Balance Sheet Items
106
IV.
Unconsolidated Income Statement
108
V.
Unconsolidated Statement of Income and Expense Items Accounted under Shareholders’ Equity
109
VI.
Unconsolidated Statement of Changes in the Shareholders’ Equity
110
VII.
Unconsolidated Statement of Cash Flows
112
VIII. Unconsolidated Statement of Profit Distribution Table
113
SECTION III
Explanations on Accounting Policies
I.
Basis of Presentation
114
II.
Strategy for Use of Financial Instruments and Foreign Currency Transactions
114
III.
Associates and Subsidiaries
115
IV.
Forward and Option Contracts and Derivatives Instruments
115
V.
Interest Income and Expenses
115
VI.
Fees and Commission Income and Expenses
116
VII.
Financial Assets
116
VIII. Impairment of Financial Assets
117
IX.
Offsetting Financial Instruments
118
X.
Sale and Repurchase Agreements and Securities Lending Transactions
118
XI.
Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
118
XII.
Goodwill and Other Intangible Assets
118
XIII. Tangible Assets
118
XIV. Leasing Transactions
119
XV.
Provisions and Contingent Liabilities
119
XVI. Contingent Assets
120
XVII. Liabilities Regarding Employee Benefits
120
XVIII. Taxation
121
XIX. Borrowings
123
XX.
Equity Shares and Issuance of Equity Securities
123
XXI. Bank Acceptances and Bills of Guarantee
123
XXII. Government Incentives
123
XXIII. Segment Reporting
123
XXIV. Other Disclosures
123
SECTION IV
Information on the Financial Position and Risk Management of the Bank
I.
Explanations on Capital Adequacy Standard Ratio
124
II.
Explanations on Credit Risk
127
III.
Explanations on Market Risk:
135
IV.
Explanations on Operational Risk
137
V.
Explanations on Currency Risk
138
VI.
Explanations on Interest Rate Risk
140
VII.
Explanations on Equity Shares Risk Arising from Banking Book
144
VIII. Explanations on Liquidity Risk
145
IX.
Explanations on securitization positions
148
X.
Explanations on credit risk mitigation techniques:
148
XI.
Explanations on risk management objectives and policies
149
XII.
Explanations on Other Price Risks
150
XIII. Explanations on Presentation of Assets and Liabilities at Fair Value
151
XIV. Explanations on Transactions Carried Out on Behalf of Third Parties and Fiduciary Transactions
152
XV.
Explanations on Segment Reporting
152
SECTION V
Disclosures and Footnotes on the Unconsolidated Financial Statements
I.
Disclosures and Footnotes on Assets
155
II.
Disclosures and Footnotes on Liabilities
172
III.
Disclosures and Footnotes on Off Balance Sheet Items
180
IV.
Disclosures and Footnotes on Income Statement
182
V.
Disclosures and Footnotes on Statement of Changes in Shareholders’ Equity
186
VI.
Disclosures and Footnotes on Statements of Cash Flows
186
VII.
Disclosures and Footnotes on the Bank’s Risk Group
187
VIII. Disclosures on the Bank’s Domestic, Foreign, Off-Shore Branches or Associates and Foreign Representative Offices
189
IX.
Subsequent Events
189
SECTION VI
Other Explanations
I.
Explanations on the Bank’s Credit Ratings:
190
II.
Explanations on Special Purpose Audit and Public Audit
191
SECTION VII
Independent Auditors’ Report
I.
Explanations on the Independent Auditors’ Report
191
II.
Explanations and Footnotes of the Independent Auditors
191
