177
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
i.3. Provisions for exchange losses in the principal amount of foreign currency indexed loans: Since foreign currency indexed
loans are followed based on the rates on the lending date, the Bank incurs a loss if the exchange rates decrease and makes profit if
the exchange rate increases. As of 31 December 2013, provision amount for the currency evaluation losses in the principal amount
of foreign currency indexed loans is TL 52 and this amount is offset against foreign currency indexed loan balance in the financial
statements.
i.4. The Bank’s specific provisions for unindemnified non-cash loans balance is TL 88,971 which is allocated for the non-cash loans
of companies whose loans are followed under “Non-performing Loans” accounts (31 December 2012: TL 102,568).
i.5. Information on other provisions:
i.5.1. Provisions for potential risks: The Bank management provided a general provision for the possible result of the negative
circumstances which may arise from any changes in economy or market conditions amounting TL 1,000,000 of this amount was had
been recognized as expense in the prior periods.
i.5.2. Liabilities arising from retirement benefits:
Liabilities of pension funds founded as per the Social Security Act:
Within the scope of the explanations given in Section Three Note XVII, in the actuarial report which was prepared as of 31 December
2013 for Türkiye İş Bankası A.Ş. Emekli Sandığı Vakfı (İşbank Pension Fund), of which each Bank employee is a member, and which
has been established according to the provisional Article 20 of the Social Security Act No. 506, the amount of actuarial and technical
deficit stands at TL 1,775,839 (31.12.2012: TL 1,778,210).
The above mentioned actuarial audit, which was made in accordance with the principles of the related law, measures the cash value
of the liability as of 31 December 2013, in other words, it measures the amount to be paid to the Social Security Institution by the
Bank. Actuarial assumptions used in the calculation are given below.
• 9.8% technical deficit interest rate is used.
• After the date of 1 September 2013 taking into account the short term insurance premium is fixed by 2% and the total premium
rate is 34.5%.
• CSO 1980 woman/man mortality tables are used.
Below table shows the cash values of premium and salary payments of the Bank as of 31 December 2013, taking the health
expenses within the Social Security Institution limits into account.
Current Period
Prior Period
Net Present Value of Total Liabilities Other Than Health
(4,900,737)
(4,323,548)
Net Present Value of Long Term Insurance Line Premiums
2,173,772
1,779,033
Net Present Value of Total Liabilities Other Than Health
(2,726,965)
(2,544,515)
Net Present Value of Health Liabilities
(660,534)
(581,571)
Net Present Value of Health Premiums
1,235,098
1,014,295
Net Present Value of Health Liabilities
574,564
432,724
Pension Fund Assets
376,562
333,581
Amount of Actuarial and Technical Deficit
(1,775,839)
(1,778,210)
The assets of the pension fund are as follows.
Current Period
Prior Period
Cash
253,716
210,692
Securities Portfolio
96,722
96,928
Other
26,124
25,961
Total
376,562
333,581
On the other hand, after the transfer, the currently paid health benefits will be revised within the framework of the Social Security
Institution legislation and related regulations.
