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TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements for the Year Ended
31 December 2014
190
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 yearend 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 Group'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 reprising 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
(202,336)
(165,600)
(909,325)
(622,653)
1 bp decrease
1 bp decrease
263,737
184,304
999,981
673,953
(1)
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):
Current Period
Up to 1 Month 1-3 Months 3-12 Months 1-5 Years
5 Years
and Over
Non-Interest
Bearing
Total
Assets
Cash (Cash in Vault, Foreign Currency Cash, Money in Transit, Cheques
Purchased) and Balances with the Central Bank of Turkey
3,138,300
22,005,247 25,143,547
Banks
3,791,348 1,077,869 190,380
946,860 6,006,457
Financial Assets at Fair Value through Profit/Loss
504,143 510,350 550,408 243,476
73,982
377,811 2,260,170
Money Market Placements
224,303
39,256
263,559
Financial Assets Available for Sale
6,171,223 7,080,627 10,085,566 10,830,438 11,279,082
230,193 45,677,129
Loans
(1)
27,122,827 33,987,297 39,192,124 55,420,005 13,878,680
160,364 169,761,297
Held to Maturity Investments
55,999 387,018 936,622
12,221
1,391,860
Other Assets
1,033,863
141,105 607,783 1,715,579 156,950 21,617,134 25,272,414
Total Assets
42,042,006 43,223,522 51,562,883 68,221,719 25,388,694 45,337,609 275,776,433
Liabilities
Bank Deposits
4,411,535 1,259,887
317,910
46,217
653,743 6,689,292
Other Deposits
67,163,727 23,472,033 6,330,969 1,400,754
1,346 29,443,105 127,811,934
Money Market Funds
20,983,454 540,520 668,740 112,055
22,304,769
Miscellaneous Payables
599,507
743
1,966
3,231
13,790,053 14,395,500
Marketable Securities Issued
(2)
1,755,571 2,727,070 4,266,212 5,598,632 7,518,391
21,865,876
Funds Provided from Other Financial
Institutions
6,575,972 15,896,936 8,670,806 758,472 2,273,886
34,176,072
Other Liabilities
(3) (4)
416,096 332,952 1,118,386
83,027
2,583 46,579,946 48,532,990
Total Liabilities
101,905,862 44,230,141 21,374,989 8,002,388 9,796,206 90,466,847 275,776,433
Balance Sheet Long Position
30,187,894 60,219,331 15,592,488
105,999,713
Balance Sheet Short Position
(59,863,856) (1,006,619)
(45,129,238) (105,999,713)
Off Balance Sheet Long Position
1,012,885 2,931,693
3,944,578
Off Balance Sheet Short Position
(1,117,106) (1,819,830)
(859,718)
(3,796,654)
Total Position
(58,850,971)
1,925,074 29,070,788 58,399,501 14,732,770 (45,129,238)
147,924
(1)
The balance includes factoring receivables.
(2)
The amount of TL 3,268,784 of secondary subordinated issued bonds having credit quality, which is classified on the balance sheet under the subordinated loans, are also included.
(3)
Equity is included in “non-interest bearing” column.
(4)
The borrower funds are presented in “Up to 1 month” column in other liabilities.