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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
149
İŞBANK
ANNUAL REPORT 2014
a.3. Information on forward and option agreements and other similar agreements made with the Bank’s risk group:
Bank’s Risk Group
Investments in Associates, Subsidiaries
and Jointly Controlled Entities
(Joint Ventures)
Direct and Indirect Shareholders
of the Bank
Other Individuals and Corporates
in Risk Group
Current Period
Prior Period Current Period
Prior Period Current Period
Prior Period
Transactions at Fair Value Through Profit and Loss
Beginning of the period
1,208,134
526,529
4,708
End of the period
793,010
1,208,134
Total Profit/ Loss
(10,653)
67,916
27
308
Transactions for hedging purposes
Beginning of the period
End of the period
Total Profit/Loss
b. Disclosures for Bank’s risk group:
b.1. The relations of the Bank with the entities controlled by the Bank and its related parties regardless of whether there are any transactions between the parties:
All types of corporate and retail banking services are provided to these corporations in line with the articles of Banking Law.
b.2. The type and amount of transaction carried out, and its ratio to the overall transaction volume, values of principal items and their ratios to overall items, pricing policy and
other items in addition to the structure of the relationship:
The transactions carried out are mainly loan and deposit transactions. The ratio of loans extended to the risk group to the overall loans is 0.93%, while the ratio to the overall assets is
0.61%; the ratio of deposits of the risk group corporations to the overall deposits is 3.47%, while the ratio to overall liabilities is 1.95%. Comparable price method is used in pricing the
transactions.
b.3. Purchase and sale of real estates, other assets and services, agency agreements, finance lease contracts, transfer of information obtained through research and
development, license agreements, funding (including loans and provision of support as cash capital or capital-in-kind), guarantees and collaterals, and management agreements:
The Bank acquires its properties through its associate, İş Finansal Kiralama A.Ş., when required. The Bank’s branches act as agents for Anadolu Anonim Türk Sigorta Şirketi and
Anadolu Hayat Emeklilik A.Ş. Furthermore, through its branches the Bank also acts as agent for İş YatırımMenkul Değerler A.Ş. and İş Portföy Yönetimi A.Ş. The funds, which were
founded by the Bank, 26 of them are managed by İş Portföy Yönetimi A.Ş.
If requested, cash and non-cash loan requirements of corporations within the risk group are met in accordance with the limits imposed by the Banking Law and the prevailing market
conditions.
c. Total salaries and similar benefits paid to the key management personnel
Benefits paid to key management personnel in the current period amount to TL 15,857 (31 December 2013: TL 15,401).
VIII. Disclosures on the Bank’s Domestic, Foreign, Off-Shore Branches or Associates and Foreign Representative Offices
Number
Employees
Domestic Branches
(1)
1,330
24,009
Country of Incorporation
Foreign Representative Offices 1
2
People’s Republic of China
1
1
Egypt
Total Assets
Legal Capital
Foreign Branches
2
37
England
8,478,106
361
16
173
TRNC
1,292,824
80,000
2
33
Iraq
302,702
32,975
2
28
Georgia
117,152
16,259
2
17
Kosovo
104,522
22,912
Off-Shore Branches
1
8
Bahrain
7,169,225
(1)
The Branches located in Free Trade Zones in Turkey are included among domestic branches.
IX. Subsequent Events
Within the framework of the resolution of the Bank’s Board of Directors dated 28 August 2014 regarding issuance of securities, on January 2015, the Bank has issued Bank bonds with
a nominal value of TL 124,635 with a maturity of 75 days; bonds with a nominal value of TL 735,865 and with a maturity of 241 days; and discounted bills with a nominal value of TL
96,794 and with a maturity of 383 days.
Within the framework of the resolution of the Bank’s Board of Directors dated 25 December 2013, regarding issuance of securities abroad, the Bank issued securities with a total
amount of USD 139.5 million on January 2015.
It was announced within the context of public disclosure dated 30 September 2014 that the Board of Directors of the Bank had decided to increase the paid-in capital of the subsidiary
CJSC İşbank to 5,184 million Rubles by increasing 3,040 million Rubles, and it was also decided to exercise Bank’s preferential rights amounting to 3,040 million Rubles arising from the
capital increase. The amount related to the mentioned preferential rights amounting to 3,040 million Rubles was paid on 21 January 2015.