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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
a.7. Non-cash Loans classified under Group I and Group II:
Group I
Group II
TL
FC
TL
FC
Non-cash Loans
15,356,038 22,484,118
101,164
70,794
Letters of Guarantee
15,343,897 14,003,410
101,164
62,386
Bank Acceptances
4,262
1,490,314
370
Letters of Credit
6,413,211
8,038
Endorsements
Underwriting Commitments of the Securities Issued
Factoring Related Guarantees
Other Guaranties and Warranties
7,879
577,183
b.
Explanation on Derivative Financial Instruments:
Majority of the Bank’s derivative transactions comprise foreign currency and interest rate swaps, forward foreign exchange trading,
currency and interest rate options. Even though some derivative transactions economically provide risk hedging, since all necessary
conditions to be defined as items suitable for financial risk hedging accounting are not met, they are recognized as “held for trading
purposes” within the framework of TAS 39 “Financial Instruments: Recognition and Measurement”.
c.
Explanation Related to Contingencies and Commitments:
As of 31 December 2013, balance of the “Other Irrevocable Commitments” account, which comprised the letters of guarantees,
guarantees and commitments submitted by the Bank pursuant to its own internal affairs, and guarantees given to third parties by
other institutions in favor of the Bank and the commitments due to housing loans extended within the scope of unfinished house
projects followed, amounts to TL 5,347,315. As of 31 December 2013 liability of the Bank regarding the cheques given to customers
is presented under off balance sheet commitments, as per the related regulations is amounting to TL 6,024,383. In case the
cheques presented for payment to beneficiaries are not covered, the Bank will be obliged to pay the uncovered amount up to TL 660
(full amount expressed) for the cheques that are subject to the Law numbered 3167 on “the Regulation of Payments by Cheque and
Protection of Cheque Holders”, and up to TL 1,120 (full amount) for the cheques that are subject to the “Cheque Law” numbered
5941. The uncollected amount will be followed under “Indemnified Non-Cash Loans”.
d.
Information related to transactions made on behalf of or on the account of others:
It is explained in Note XIV under Section Four.
IV. Disclosures and Footnotes on Income Statement
a.
Interest Income
a.1. Information on interest income on loans:
Current Period
Prior Period
TL
FC
TL
FC
Interest Income on Loans
(1)
Short-term Loans
3,098,503
277,274 3,408,410
291,981
Medium and Long-term Loans
5,032,069
1,817,992
4,405,307
1,414,306
Interest on Non-performing Loans
153,675
165,515
Premiums Received from State Resource Utilization
Support Fund
Total
8,284,247
2,095,266 7,979,232
1,706,287
(1)
Includes fee and commission income on cash loans.
