118 / 236
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements for the Year Ended
31 December 2014
118
İŞBANK
ANNUAL REPORT 2014
Interest rate sensitivity:
In this part, the sensitivity of the Bank’s assets and liabilities to the interest rates has been analyzed assuming that the year end balance figures were the same throughout the year.
Mentioned analysis shows how the FC and TL changes in interest rates by one point during the one-year period affect the Bank's income accounts and shareholders' equity under the
assumption maturity structure and balances are remain the same all year round at the end of the year.
During the measurement of the Bank’s interest rate sensitivity, the profit/loss on the asset and liability items that are evaluated with market value are determined by adding to/
deducting from the difference between the expectancy value of the portfolio after one year in case there is no change in interest rates and the value of the portfolio one year later,
which is measured after the interest shock, the interest income to be additionally earned/to be deprived of during the one year period due to the renewal or repricing of the related
portfolio at the interest rates formed after the interest shock.
On the other hand, in the profit/loss calculation of assets and liabilities that are not evaluated by the current market prices, it is assumed that assets and liabilities with fixed interest
rates will be renewed at maturity date and the assets and liabilities having variable interest rates will be renewed at the end of repricing period with the market interest rates
generated after the interest shock.
Within this context, ceteris paribus, the possible changes that may occur in the Bank’s profit and shareholders’ equity in case of 1 point increase/decrease in TL and FC interest rates on
the reporting day are given below.
%Change in the Interest Rate
(1)
Effect On Profit/Loss
(2)
Effect on Equity
(3)
TL
FC
(4)
Current Period
Prior Period
Current Period
Prior Period
1 bp increase
1 bp increase
(227,340)
(194,306)
(707,204)
(480,678)
1 bp decrease
1 bp decrease
268,144
205,131
769,977
512,920
(1)
Changes in interest rates is calculated assuming that the expectations reflected in inflation. The effects on the profit/loss and shareholders’ equity are stated with their before tax values.
(2)
The effect on the profit/loss is mainly arising from the fact that the average maturity of the Bank’s fixed rate liabilities is shorter than the average maturity of its fixed rate assets.
(3
) The effect on the shareholders’ equity is arising from the change of the fair value of securities followed under Financial Assets Available for Sale.
(4)
Due to the reason that the LIBOR rates were at low levels in both of the periods, the negative shock imposed on FC interest rates in some maturity brackets remained below the aforementioned rates.
a. Interest rate sensitivity of assets, liabilities and off balance sheet items
(Based on repricing dates):
Up to 1 Month 1-3 Months 3-12 Months
1-5 Years
5 Years
and Over
Non-Interest
Bearing
Total
Current Period
Assets
Cash (Cash in Vault, Foreign Currency Cash, Money in Transit,
Cheques Purchased) and Balances with the Central Bank of Turkey
3,106,672
21,500,034 24,606,706
Banks
717,566
49,094
109,817
1,739
515,005 1,393,221
Financial Assets at Fair Value through Profit/Loss
335,008 386,705
375,316
132,071
8,468
687 1,238,255
Money Market Placements
Financial Assets Available for Sale
5,198,759 6,313,786 8,810,139 9,769,971 9,109,597
87,709 39,289,961
Loans
23,735,735 29,595,834 34,687,158 54,112,227 13,581,068
162,256 155,874,278
Held to Maturity Investments
40,639
352,297
895,947
12,221
1,301,104
Other Assets
153,844
13,914,606 14,068,450
Total Assets
33,288,223 36,697,716 44,878,377 64,028,229 22,699,133 36,180,297 237,771,975
Liabilities
Banks Deposits
4,261,806 1,187,544 289,801
658,231 6,397,382
Other Deposits
67,513,785 24,037,158 5,752,606 1,082,397
28,767,863 127,153,809
Money Market Funds
16,677,711
237,610 668,740
112,055
17,696,116
Miscellaneous Payables
168,129
5,339,962 5,508,091
Marketable Securities Issued
(1)
1,757,525 2,540,308 4,211,154 5,206,662 6,706,892
20,422,541
Funds Provided from Other Financial Institutions
1,893,713 11,968,875 5,349,797
102,594 1,354,184
20,669,163
Other Liabilities
(2)
279,266
307,607 1,072,322
88,173
38,177,505 39,924,873
Total Liabilities
92,551,935 40,279,102 17,344,420 6,591,881 8,061,076 72,943,561 237,771,975
Balance Sheet Long Position
27,533,957 57,436,348 14,638,057
99,608,362
Balance Sheet Short Position
(59,263,712)
(3,581,386)
(36,763,264) (99,608,362)
Off Balance Sheet Long Position
956,538 2,920,590
3,877,128
Off Balance Sheet Short Position
(554,525) (2,323,892)
(694,200)
(3,572,617)
Total Position
(58,307,174)
(660,796) 26,979,432 55,112,456 13,943,857 (36,763,264)
304,511
(1)
Includes subordinated bonds which are classified on the balance sheet as subordinated loans.
(2)
Shareholders’ equity is included in “non-interest bearing” column