İŞBANK ANNUAL REPORT 2014

TÜRKİYE İŞ BANKASI A.Ş.

Notes to the Consolidated Financial Statements for the Year Ended

31 December 2014

155

İŞBANK

ANNUAL REPORT 2014

FINANCIAL INFORMATION AND

RISK MANAGEMENT

SECTION ONE: 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

TÜRKİYE İŞ BANKASI A.Ş. (“the Bank” or “the Parent Bank”) was established on 26 August 1924 to operate in all kinds of banking activities and to initiate and/or participate in all kinds

of financial and industrial sector undertakings when necessary. The Bank status has not been changed since its establishment.

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

As of 31 December 2014, 40.15% of the Bank’s shares are owned by Türkiye İş Bankası A.Ş. Members’ Supplementary Pension Fund (Fund), 28.09% are owned by the Republican

People’s Party-CHP (Atatürk’s shares) and 31.76% are on free float. (31 December 2013: Fund 40.16%, CHP 28.09%, free float 31.75%).

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

Board of Directors:

NameandSurname AreasofResponsibility

H. Ersin Özince

Chairman of the Board and the Remuneration Committee

Füsun Tümsavaş

Deputy Chairman, Audit Committee, TRNC Internal Systems Committee and the Risk Committee, Chairman of the Corporate Governance Committee, Member of the

Credit Committee

Adnan Bali

Chief Executive Officer and Director, Chairman of the Credit Committee, Member of the Risk Committee, Chairman of the Executive Committee, Chairman of the

Human Resources Committee

Hasan Koçhan

Director, Member of the Credit Committee

Mustafa Kıcalıoğlu

Director

Aysel Tacer

Director, Member of the Corporate Social Responsibility Committee, AlternateMember of the Credit Committee

Hüseyin Yalçın

Director

Murat Vulkan

Director

Prof.Dr.Turkay Berksoy Director, Audit Committee, TRNC Internal Systems Committee, The Remuneration Committee, and Corporate Governance Committee, AlternateMember of the Credit

Committee

Kemal Meral

Director

Ulaş Moğultay

Director, Member of the Corporate Social Responsibility Committee

Chief Executive Officer and Deputy Chief Executives:

NameandSurname

AreasofResponsibility

Adnan Bali

Chief Executive Officer and Director, Chairman of the Credit Committee, Member of the Risk Committee, Chairman of the Executive Committee, Chairman of the

Human Resources Committee

Mahmut Magemizoğlu Financial Management, Investor Relations, Managerial Reporting and Internal Accounting, Risk Committee

Suat İnce

Corporate and Commercial BankingMarketing, Sales and Product Management, SME and Business Banking Sales, Free Zone Branches

Hakan Aran

Alternative Distribution Channels Operations, Information TechnologyManagement

Levent Korba

Banking Operations, Retail Loan and Card Operations, Support Services and Purchasing, Foreign Trade and Commercial Loan Operations, Internal Operations

Management, Construction and Real EstateManagement, Branch Network Development

Ertuğrul Bozgedik

Corporate Loans, SME Loans, Commercial Loans and Consumer Loans Underwriting, Loans PortfolioManagement, Member of the Risk Committee

Yalçın Sezen

Consumer Loans, Card Payment Systems, Retail BankingMarketing, Sales and Product Management, Private BankingMarketing and SaleManagement, Member of

the Corporate Social Responsibility Committee

Rıza İhsan Kutlusoy

Human Resources, Enterprise Architecture, Strategy and Corporate PerformanceManagement and Talent Management, Coordination of Consumer Relations Officer

Senar Akkuş

TreasuryManagement, Corporate CommunicationManagement, Corporate Social Responsibility CommitteeMember of the Risk Committee

İlhami Koç

Associates, Cross-Border Banking and Foreign Subsidiaries, Branches and Representative Offices, Capital Markets Management and Risk Committee

(1)

Yılmaz Ertürk

Economic Research, International Financial Institutions

Ergün Yorulmaz

Legal Counsellor, Financial Analysis, Commercial and Corporate Loans and Retail Loans Monitoring and RecoveryManagement

(1)

İlhami Koç, participate in the meetings of the Risk Committee on a consolidated basis.

The Parent Bank’s shares attributable to the Directors and members of the Audit Committee, to the CEO and the Deputy Chief Executives are of minor importance.

IV. Information on the Parent Bank’s Qualified Shareholders

Name Surname/Company

Ownership Paid-in Capital

Unpaid Capital

T. İş Bankası A.Ş. Mensupları Munzam Sosyal Güvenlik ve Yardımlaşma Sandığı Vakfı (İşbank

Members’ Supplementary Pension Fund)

1,806,553

40.15 % 1,806,553

Cumhuriyet Halk Partisi – Republican People’s Party (Atatürk’s Shares)

1,264,142

28.09% 1,264,142

V. Summary Information on the Parent Bank’s Functions and Business Lines

In line with the relevant legislation and principles stated in the Articles of Incorporation of the Bank, the Parent Bank’s activities include operating in retail, commercial, corporate and

private banking, foreign currency and money market operations, marketable securities operations, international banking services and other banking operations, as well as initiating or

participating in all kinds of financial and industrial sector corporations as may be required.