İŞBANK ANNUAL REPORT 2014

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TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Unconsolidated Financial Statements for the Year Ended
31 December 2014
FINANCIAL INFORMATION AND
RISK MANAGEMENT
147 İŞBANK ANNUAL REPORT 2014
g. Other operating expenses:
Current Period Prior Period
Personnel Expenses (1) 2,456,179 2,275,548
Reserve for Employee Termination Benefits 49,744 37,400
Bank Pension Fund Deficit Provisions 122,568
Impairment Losses on Tangible Assets 3,325
Depreciation Expenses of Tangible Assets 217,479 199,016
Impairment Losses on Intangible Assets
Impairment Losses on Goodwill
Amortization Expenses of Intangible Assets 117,555 95,708
Impairment Losses on Equity Accounted Investments
Impairment Losses on Assets to be Disposed 2,566 1,231
Depreciation Expenses of Assets to be Disposed 6,124 8,041
Impairment Losses on Assets Held for Sale
Other Operating Expenses 1,644,527 1,439,198
Operational Lease Related Expenses 274,117 224,595
Repair and Maintenance Expenses 22,018 22,014
Advertisement Expenses(2) 180,896 169,044
Other Expenses (2) 1,167,496 1,023,545
Loss on Sale of Assets (3) 272,908 101,786
Other (4) 805,763 801,266
Total 5,695,413 4,962,519
(1) According to “TAS 19-Employee Benefits”, it includes provision for the payments that will be made to employees such as dividend distribution etc.
(2) Expense amount of the Bank’s donation, contributions and social responsibility projects is TL 27,242 in the current period (31 December 2013: TL 24,327)
(3) In the current period, due to the sale of Antgıda Gıda Tarım Turizm ve Enerji ve Demir Çelik Sanayi Ticaret A.Ş, a loss of TL 132,245 TL was realized. On the other hand, due to the sale of that subsidiary, there was
a provision reversal amounting to TL 132,278. As a result of the sale, a profit of TL 33 was recognized in the current period. In addition, in the current period, due to the sale of a factory building real estate, a loss of
TL 134,539 TL was realized. On the other hand, due to this sale, there was a provision reversal amounting to TL 128 a result of the sale, a profit of TL 5,706 was recognized in the current period. In the prior
period, due to the sales of Bayek Tedavi Sağlık Hizmetleri ve İşletmeciliği A.Ş. and Mipaş Mümessillik İthalat İhracat ve Pazarlama A.Ş, a loss of TL 97,334 TL was realized. On the other hand, due to the sales of relevant
subsidiaries, there was a provision reversal amounting to TL 111,843. As a result of the sales, a profit of TL 56,576 was recognized in the prior period.
(4)In the current period, the Other item includes TL 117,397 of expenses related with credit fee returns, which was recognized as income in prior years. TL 114,473 of the Other item is the provision expenses for
the lawsuit files against “Türkiye İş Bankası A.Ş. Mensupları Munzam Sosyal Güvenlik ve Yardımlaşma Sandığı Vakfı (Vakıf)” which is explained in the Note II-i.5.4. In the prior period, the Other item included provision
expenses amounting to TL 319,181, which was related to the investigation held by Turkish Competition Board and the lawsuit files against “Türkiye İş Bankası A.Ş. Mensupları Munzam Sosyal Güvenlik ve Yardımlaşma
Sandığı Vakfı”.
h. Information on Profit/Loss before taxes including Profit/Loss from Continuing and Discontinued Operations
The Bank’s profit before tax is generated from its continuing operations. The profit before tax consists of net interest income of TL 7,454,217, net fee and commission income of TL
2,003,778 and the other operation expenses amount to TL 5,695,413.
i. Information on Provision for Taxes from Continuing and Discontinued Operations
As of 31 December 2014 the amount of the Bank’s tax provision is TL 848,626 and the amount consists of current tax expense that is amounting to TL 1,116,157 and consists of
deferred tax income amounting TL 267,531.
j. Information on Net Operating Profit/Loss after Taxes Including Net Profit/Loss from Continuing and Discontinued Operations:
The Bank’s net profit generated from its continuing operations amounts to TL 3,382,442.
k. Information on Net Period Profit/Loss:
k.1. Income and expenses resulting from ordinary banking activities: There is no specific issue required to be disclosed for the Bank’s performance for the period between 1 January
2014 – 31 December 2014.
k.2. Effects of changes in accounting estimates on the current and future periods’ profit/loss: There is no issue to be disclosed
k.3. ‘’The other’’ itemwhich is located at the bottom of received fees and commissions in the income statement consist of various fees and commissions received from transactions
such as credit card transactions, capital market transactions and insurance-reinsurance transactions.
l. Explanation on Other Items on the Income
Other items do not exceed 10% of the total amount of the income statement.
V. Disclosures and Footnotes on Statement of Changes in Shareholders’ Equity
The paid-in capital is TL 4,500,000 in legal records. As of balance sheet date, the balance of legal reserves is TL 2,246,666 and the balance of extraordinary reserves is TL 12,584,659.
In the current period, the change in other reserves itemmainly is a result of the conversion profit of foreign branches.
The details of revaluation surplus of securities are shared in the Note no. V-II-m.9. TL (142,440) of this amount is the deferred tax effect on available for sale securities (31 December
2013: TL 147,368).