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İş Bankası
Annual Report 2013
Financial Information and Risk Management
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements
for the Year Ended 31 December 2013
Credit risk is the risk reduction effects without taking into consideration the total amount of exposures after offsetting transactions
with different risk classes according to the types and amounts of disaggregated risks are listed below the average for the period.
Exposure Categories
(1)
Current Period
Risk Amount
Average
Risk Amount
(2)
Exposure Categories
Conditional and unconditional exposures to central governments or
central banks
58,963,276
55,943,867
Conditional and unconditional exposures to regional governments or local
authorities
58,799
63,238
Conditional and unconditional exposures to administrative bodies and
non-commercial undertakings
211,846
278,323
Conditional and unconditional exposures to multilateral development
banks
1,121
1,211
Conditional and unconditional exposures to international organizations
Conditional and unconditional exposures to banks and brokerage houses
7,842,079
9,148,821
Conditional and unconditional exposures to corporates
94,293,455
86,420,766
Conditional and unconditional retail exposures
38,077,768
37,597,580
Conditional and unconditional exposures secured by real estate property
11,245,721
10,701,655
Past due items
437,647
476,581
Items in regulatory high-risk categories
15,388,581
12,263,137
Exposures in the form of bonds secured by mortgages
Securitization positions
Short term exposures to banks, brokerage houses and corporates
Exposures in the form of collective investment undertakings
359,208
367,761
Other items
12,804,532
12,713,799
(1)
Includes total risk amounts before the effect of credit risk mitigation but after credit conversions.
(2)
Average risk amounts are the arithmetical average of the amounts in quarterly reports prepared.
2.
There are certain control limits on forward transactions in terms of counter parties, and the risks taken for derivative instruments
are evaluated along with other potential risks resulting from the market fluctuations.
3.
As a result of the current level of customers’ needs and the progress in the domestic market in this particular area, the Bank uses
derivative transactions either for hedging or for commercial purposes.
Derivative instruments with a remarkable volume are monitored with consideration that they can always be liquidated in case of
need.
4.
Indemnified non-cash loans are considered as having the same risk weights as unpaid cash loans.
The rating and scoring systems applied by the Bank, includes detailed company analysis and enables rating of all companies and
loans without any restrictions regarding credibility. Loans and companies, which have been renewed, restructured or rescheduled,
are rated within the scope of this system. Specialized loans are evaluated by a special rating system, which is based on the credibility
of the counterparty as well as the feasibility and risk analysis of the cash flows created mainly by the projects undertaken or the
asset financed.
5.
Lending transactions abroad are conducted by determining the country risks of related countries within the context of the current
rating system and by taking the market conditions, country risks, and the relevant legal limitations into account. Furthermore, the
credibility of banks and other financial institutions established abroad is examined within the framework of the rating system that
has been developed and credit limits are assigned accordingly.
6.
(i) The share of the Bank’s receivables from the top 100 and 200 cash loan customers in the overall cash loan portfolio stands at
21%, 28%, respectively (31.12.2012: 22%, 29%).
(ii) The share of the Bank’s receivables from the top 100 and 200 non-cash loan customers in the overall non-cash portfolio stands
at 46%, 57% respectively (31.12.2012: 44%, 55%).
