Financial Information and Risk
Management
195
İş Bankası
Annual Report 2013
Page
SECTION I
General Information about the Parent Bank
I.
Explanations on the Establishment Date and Initial Status of the Parent Bank, and History Including the Changes in the Former Status
196
II.
Explanations on the Capital Structure, Shareholders who Directly or Indirectly, Solely or Jointly Undertake the Management and Control of the Parent Bank, any
Changes in the Period, and Information on the Parent Bank’s Risk Group
196
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 196
IV.
Information on the Parent Bank’s Qualified Shareholders
197
V.
Summary Information on the Parent Bank’s Functions and Business Lines
197
VI.
Differences between the Communiqué on Preparation of Consolidated Financial Statements of Banks and Turkish Accounting Standards and Explanation about the
Institutions Subject to Line-By-Line Method or Proportional Consolidation and Institutions which are Deducted from Equity or not Included in These Three Methods
197
VII.
Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholder’s Equity Between the Parent Bank and its Subsidiaries or the Reimbursement of Liabilities
199
VIII. Written Policies on Assessment of Ensuring Compliance on Market Discipline, Disclosure Obligations, Frequency and Accuracy of Related Disclosures
199
SECTION II
Consolidated Financial Statements
I.
Consolidated Balance Sheet (Statement of Financial Position) - Assets
200
II.
Consolidated Balance Sheet (Statement of Financial Position) - Liabilities and Equity
201
III.
Consolidated Off-Balance Sheet Items
202
IV.
Consolidated Income Statement
204
V.
Consolidated Statement of Income and Expense Items Accounted under Shareholders’ Equity
205
VI.
Consolidated Statement of Changes in the Shareholders’ Equity
206
VII.
Consolidated Statement of Cash Flows
208
VIII. Consolidated Statement of Profit Distribution Table
209
SECTION III
Explanations on Accounting Policies
I.
Basis of Presentation
210
II.
Strategy for Use of Financial Instruments and on Foreign Currency Transactions
210
III.
Explanation on the Consolidated Companies
211
IV.
Forwards, Options and Other Derivative Transactions
212
V.
Interest Income and Expenses
213
VI.
Fee and Commission Income and Expenses
213
VII.
Financial Assets
213
VIII. Impairment of Financial Assets
214
IX.
Offsetting Financial Instruments
215
X.
Sale and Repurchase Agreements and Securities Lending Transactions
215
XI.
Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
215
XII.
Goodwill and Other Intangible Assets
216
XIII. Tangible Assets
216
XIV. Investment Property
217
XV.
Leasing Transactions
217
XVI. Insurance Technical Income and Expense
217
XVII. Insurance Technical Reserves
217
XVIII. Provisions and Contingent Liabilities
218
XIX. Contingent Assets
218
XX.
Liabilities Regarding Employee Benefits
219
XXI. Taxation
220
XXII. Borrowings
222
XXIII. Equity Shares and Issuance of Equity Shares
222
XXIV. Bank Acceptances and Bills of Guarantee
222
XXV. Government Incentives
222
XXVI. Segment Reporting
223
XXVII.Other Disclosures
223
SECTION IV
Information on the Financial Position and Risk Management of the Group
I.
Explanations on Consolidated Capital Adequacy Ratio
223
II.
Explanations on Consolidated Credit Risk
228
III.
Explanations on Consolidated Market Risk
237
IV.
Explanations on Consolidated Operational Risk
239
V.
Explanations on Consolidated Currency Risk
240
VI.
Explanations on Consolidated Interest Rate Risk
242
VII.
Explanations on Equity Shares Risk Arising from Banking Book
246
VIII. Explanations on Consolidated Liquidity Risk
247
IX.
Explanations on Securitization Positions
250
X.
Explanations on Credit Risk Mitigation Techniques
250
XI.
Explanations on Risk Management Objectives and Policies
251
XII.
Explanations on Other Price Risks
252
XIII. Explanations on Presentation of Assets and Liabilities at Fair Value
253
XIV. Explanations on Transactions Carried Out on Behalf of Third Parties and Fiduciary Transactions
254
XV.
Explanations on Consolidated Business Segmentation
254
SECTION V
Disclosures and Footnotes on the Consolidated Financial Statements
II.
Disclosures and Footnotes on Consolidated Assets
257
II.
Disclosures and Footnotes on Consolidated Liabilities
276
III.
Disclosures and Footnotes on Consolidated Off-Balance Sheet Items
285
IV.
Disclosures and Footnotes on the Consolidated Income Statement
287
V.
Disclosures and Footnotes on Consolidated Statement of Changes in Shareholders’ Equity
293
VI.
Disclosures and Footnotes on the Consolidated Statement of Cash-Flows
293
VII.
Disclosures And Footnotes on the Group’s Risk Group
295
VIII. Disclosures on the Group’s Domestic, Foreign, Off-Shore Branches or Participations and Representative Offices
298
IX.
Subsequent Events
299
SECTION VI
Other Explanations
I.
Explanation on the Group’s Credit Ratings:
300
II.
Explanation on Special Audit and Public Audit
301
SECTION VII
Explanations on the Independent Auditors’ Report
I.
Explanations on the Independent Auditors’ Report:
301
II.
Explanations and Footnotes of the Independent Auditors
301
