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Financial Information and Risk
Management
İş Bankası
Annual Report 2013
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements
for the Year Ended 31 December 2013
(iii) The share of the Bank’s cash and non-cash receivables from the top 100 and 200 loan customers in the overall cash and non-
cash loans stands at 16%, 21%, respectively (31.12.2012: 15%, 20%).
Companies that are among the top loan customers ranked according to cash, non-cash and total risks are leaders in their own
sectors, the loans advanced to them are in line with their volume of industrial and commercial activity. A significant part of such
loans is extended on a project basis, with their repayment sources being analyzed in accordance with the banking principles to be
considered as satisfactory and associated risks are determined and duly covered by obtaining appropriate guarantees when deemed
necessary.
7.
The total value of the general provisions allocated for credit risk stands at TL 1,972,588.
8.
The Bank measures the quality of its loan portfolio by applying different rating/scoring models on cash commercial/corporate
loans, retail loans and credit cards. The breakdown of the rating/scoring results, which are classified as “Strong”, “Standard” and
“Below Standard” by considering their default features, is shown below.
The loans whose borrowers’ capacity to fulfill their obligations is very good, are defined as “Strong”, whose borrowers’ capacity to
fulfill its obligations in due time is reasonable, are defined as “Standard” and whose borrowers’ capacity to fulfill their obligations is
poor, are defined as “Below Standard”.
Current Period
Prior Period
Strong
49.38%
51.46%
Standard
37.02%
33.83%
Below Standard
4.71%
5.99%
Not Rated/Scored
8.89%
8.72%
The table data comprises behavior rating/scoring results
9.
The net values of the collaterals of the closely monitored loans are given below in terms of collateral types and risk matches.
Type of Collateral
Current Period
Prior Period
Net Value of the
Collateral
Loan Balance
Net Value of the
Collateral
Loan Balance
Real Estate Mortgage
(1)
582,828
582,828
574,296
574,296
Vehicle Pledge
109,493
109,493
140,164
140,164
Cash Collateral (Cash, securities pledge, etc.)
10,645
10,645
19,074
19,074
Pledge on Wages
185,229
185,229
126,458
126,458
Cheques & Notes
40,562
40,562
30,673
30,673
Other (Suretyship, commercial enterprise
under pledge, commercial papers, etc.)
308,302
308,302
173,691
173,691
Non-collateralized
847,602
827,175
Total
1,237,059
2,084,661
1,064,356
1,891,531
(1)
The mortgage and/or pledge amounts on which third parties have priorities are deducted from the fair values of collaterals in expertise reports; and after comparing the
results to the mortgage/pledge amounts and loan balances, the smallest figures are considered to be the net value of collaterals.
10.
The net values of the collaterals of non-performing loans are given below in terms of collateral types and risk matches.
Type of Collateral
Current Period
Prior Period
Net Value of the
Collateral
Loan Balance
Net Value of the
Collateral
Loan Balance
Real Estate Mortgage
(1)
354,879
354,879
417,804
417,804
Cash Collateral
157
157
36
36
Vehicle Pledge
53,749
53,749
59,204
59,204
Other (suretyship, commercial enterprise
under pledge, commercial papers, etc.)
23,247
23,247
30,474
30,474
(1)
The mortgage and/or pledge amounts on which third parties have priorities are deducted from the fair values of collaterals in expertise reports, and after comparing the
results to the mortgage/pledge amounts and loan balances the smallest figures are considered to be the net value of collaterals.
