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154
İŞBANK
ANNUAL REPORT 2014
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
155
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
155
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
155
IV.
Information on the Parent Bank’s Qualified Shareholders
155
V.
Summary Information on the Parent Bank’s Functions and Business Lines
155
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
156
VII.
Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholders’ Equity Between the Parent Bank and its Subsidiaries or the Reimbursement of Liabilities
157
VIII.
Written Policies on Assessment of Ensuring Compliance on Market Discipline, Disclosure Obligations, Frequency and Accuracy of the Related Disclosures
157
SECTION II
Consolidated Financial Statements
I.
Consolidated Balance Sheet (Statement of Financial Position) – Assets
158
II.
Consolidated Balance Sheet (Statement of Financial Position) – Liabilities and Equity
159
III.
Consolidated Off-Balance Sheet Items
160
IV.
Consolidated Income Statement
162
V.
Consolidated Statement of Income and Expense Items Accounted under Shareholders’ Equity
163
VI.
Consolidated Statement of Changes in Shareholders’ Equity
164
VII.
Consolidated Statement of Cash Flows
166
VIII.
Consolidated Statement of Profit Distribution Table
167
SECTION III
Explanations on Accounting Policies
I.
Basis of Presentation
168
II.
Strategy for Use of Financial Instruments and on Foreign Currency Transactions
168
III.
Information on the Consolidated Companies
168
IV.
Forward, Option Contracts and Derivative Transactions
169
V.
Interest Income and Expenses
169
VI.
Fees and Commission Income and Expenses
169
VII.
Financial Assets
169
VIII.
Impairment of Financial Assets
170
IX.
Offsetting Financial Instruments
171
X.
Sale and Repurchase Agreements and Securities Lending Transactions
171
XI.
Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
171
XII.
Goodwill and Other Intangible Assets
171
XIII.
Tangible Assets
171
XIV.
Investment Property
172
XV.
Leasing Transactions
172
XVI.
Insurance Technical Income and Expense
172
XVII.
Insurance Technical Reserves
172
XVIII. Provisions and Contingent Liabilities
173
XIX.
Contingent Assets
173
XX.
Liabilities Regarding Employee Benefits
173
XXI.
Taxation
174
XXII.
Borrowings
175
XXIII.
Equity Shares and Issuance of Equity Shares
175
XXIV. Bank Acceptances and Bills of Guarantee
175
XXV.
Government Incentives
175
XXVI. Segment Reporting
175
XXVII. Other Disclosures
175
SECTION IV
Information on the Financial Position and Risk Management of the Group
I.
Explanations on Consolidated Capital Adequacy Ratio
175
II.
Explanations on Consolidated Credit Risk
181
III.
Explanations on Consolidated Market Risk
187
IV.
Explanations on Consolidated Operational Risk
188
V.
Explanations on Consolidated Currency Risk
188
VI.
Explanations on Consolidated Interest Rate Risk
189
VII.
Explanations on Equity Shares Risk Arising from Banking Book
192
VIII.
Explanations on Consolidated Liquidity Risk
193
IX.
Explanations on Securitization Positions
195
X.
Explanations on Credit Risk Mitigation Techniques
195
XI.
Explanations on Risk Management Objectives and Policies
195
XII.
Explanations on Other Price Risks
196
XIII.
Explanations on the Presentation of Assets and Liabilities at Fair Value
196
XIV.
Explanations on Transactions Carried out on Behalf of Third Parties and Fiduciary Transactions
197
XV.
Explanations on Consolidated Business Segmentation
197
SECTION V
Disclosures and Footnotes on the Consolidated Financial Statements
I.
Disclosures and Footnotes on Consolidated Assets
200
II.
Disclosures and Footnotes on Consolidated Liabilities
211
III.
Disclosures and Footnotes on Consolidated Off-Balance Sheet Items
217
IV.
Disclosures and Footnotes on Consolidated Income Statement
219
V.
Disclosures and Footnotes on Consolidated Statement of Changes in the Shareholders’ Equity
222
VI.
Disclosures and Footnotes on Consolidated Statement of Cash Flows
222
VII.
Disclosures and Footnotes on the Group’s Risk Group
223
VIII.
Disclosures on the Group’s Domestic, Foreign, Off-Shore Branches or Participations and Representative Offices
224
IX.
Subsequent Events
225
SECTION VI
Other Explanations
I.
Explanation on the Group’s Credit Ratings
225
II.
Explanation on Special Purpose Audit and Public Audit
226
SECTION VII
Explanations on the Independent Auditors’ Report
I.
Explanations on the Independent Auditors’ Report
226
II.
Explanations and Footnotes of the Independent Auditors
226