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TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements for the Year Ended
31 December 2014
193
İŞBANK
ANNUAL REPORT 2014
FINANCIAL INFORMATION AND
RISK MANAGEMENT
c. Unrealized gains and losses on investment in stocks, revaluation increases with the amounts of main and additive capital:
Portfolio
Realized Gains/losses
During the period
Revaluation Increases
Unrealized Gains
Total
Including to
the Capital
Contribution
Total
Including in to the
main capital
Including to
the Capital
Contribution
Private Equity Investments
Shares Traded on a Stock Exchange
2,493,159
2,493,159
Other Stocks
Total
2,493,159
2,493,159
VIII. Explanations on Consolidated Liquidity Risk
Liquidity risk may arise as a result of funding long-term assets with short-term resources. Utmost care is taken to maintain the consistency between the maturities of assets and
liabilities; strategies are used to acquire funds over longer terms.
The Parent Bank’s main source of funding is deposits. While the average maturity of deposits is shorter than the average maturity of assets as a result of the market conditions, the
Parent Bank’s wide network of branches and steady core deposit base are its most important safeguards of the supply of funds. The Parent Bank also borrows medium and long-term
funds from institutions abroad.
In order to meet the liquidity requirements that may arise due to market fluctuations, the Group analyses TL and FC cash flows projections to preserve liquid assets. The term structure
of TL and FC deposits, their costs and movements in the total amounts are monitored on a daily basis, also accounting for developments in former periods and expectations for the
future. Based on cash flow projections, prices are differentiated for different maturities and thereby measures are taken to meet liquidity requirements; moreover liquidity that may
be required for extraordinary circumstances is estimated and alternative liquidity sources are determined for possible utilization.
Furthermore, foreign currency and total liquidity adequacy ratios, which are subject to weekly legal reporting and calculated separately for 7 and 31 days following the reporting date,
and the liquidity adequacy ratios that are calculated based on the stress scenarios built internally by the Parent Bank, are used effectively to manage the liquidity risk.
Evaluated within the framework of the Parent Bank’s asset-liability management risk policy, the limits determined related to the liquidity risk management are monitored by the Risk
Committee and to avoid extraordinary situations where a quick action should be taken due to the unfavorable market conditions, emergency measures and funding plans related to
liquidity risk are put into effect.
As per the Communiqué on “Measurement and Assessment of the Adequacy of Banks’ Liquidity”, the liquidity ratios that are measured for terms of 7 and 31 days should not be less
than 80% and 100%, respectively. Foreign currency liquidity adequacy ratio means the ratio of foreign currency assets to foreign currency liabilities and the total liquidity adequacy
ratio mean the ratio of total assets to total liabilities. Average liquidity adequacy ratios of the Parent Bank for the period ended of year 2014 with their prior year comparatives are
given below.
Current Period
First Maturity Bracket (Weekly) Second Maturity Bracket (Monthly)
FC
FC + TL
FC
FC + TL
Average (%)
168.19
145.18
127.64
109.12
Prior Period
First Maturity Bracket (Weekly) Second Maturity Bracket (Monthly)
FC
FC + TL
FC
FC + TL
Average (%)
149.64
142.48
103.54
107.25
Presentation of assets and liabilities according to their remainingmaturities:
Demand Up to 1 Month 1-3 Months 3-12 Months
1-5 Years 5 Years and Over Unallocated
(1)
Total
Current Period
Assets
Cash (Cash in Vault, Foreign Currency
Cash, Money in Transit, Cheques
Purchased) and Balances with the Central
Bank of Turkey
8,348,057 16,795,490
25,143,547
Banks
1,106,197
3,632,011
1,077,869
190,380
6,006,457
Financial Assets at Fair Value through
Profit/Loss
377,124
390,399
416,709
503,649
456,871
115,418
2,260,170
Money Market Placements
224,303
39,256
263,559
Financial Assets Available for Sale
342,189
299,848
693,568 2,175,799 17,933,831
24,231,894
45,677,129
Loans
(2)
2,770,944 15,567,883 14,888,894 50,980,763 67,411,170
17,446,848
694,795 169,761,297
Held to Maturity Investments
40,639
229,916
929,542
184,683
7,080
1,391,860
Other Assets
453,025 1,891,992
198,456
608,648 1,745,596
156,950 20,217,747 25,272,414
Total Assets
13,397,536 38,842,565 17,544,668 55,388,781 87,732,151
41,958,190 20,912,542 275,776,433
Liabilities
Bank Deposits
653,743 4,411,535 1,259,887
317,910
46,217
6,689,292
Other Deposits
29,448,116 67,158,505 23,469,411
6,333,332 1,401,224
1,346
127,811,934
Funds Provided from Other Financial
Institutions
2,431,036 2,219,205 12,109,087 10,100,376
7,316,368
34,176,072
Money Market Funds
20,691,382
305,634
224,153 1,083,600
22,304,769
Marketable Securities Issued
(3)
1,755,173
2,701,821
4,216,810 5,657,808
7,534,264
21,865,876
Miscellaneous Payables
8,450,806 5,794,860
61,286
19,358
69,190
14,395,500
Other Liabilities
(4)
17,748 1,983,992
726,385 1,106,886
91,655
21,685 44,584,639 48,532,990
Total Liabilities
38,570,413 104,226,483 30,743,629 24,327,536 18,450,070
14,873,663 44,584,639 275,776,433
Liquidity Gap
(25,172,877) (65,383,918) (13,198,961)
31,061,245 69,282,081
27,084,527 (23,672,097)
Prior Period
Total Assets
17,556,666 35,651,517 14,061,458 52,250,669 75,607,084
29,618,456 16,873,290 241,619,140
Total Liabilities
32,437,831 99,321,273 24,367,409 24,339,303 13,569,744
10,039,685 37,543,895 241,619,140
Liquidity Gap
(14,881,165) (63,669,756) (10,305,951)
27,911,366 62,037,340
19,578,771 (20,670,605)
(1)
Assets, such as Tangible Assets, Subsidiaries and Associates, Office Supply Inventory, Prepaid Expenses and Non-Performing Loans, which are required for banking operations and which cannot be converted into
cash in short-term, other liabilities such as Provisions which are not considered as payables and Shareholders’ Equity, are shown in ‘Unallocated” column.
(2)
The balances include factoring receivables.
(3)
The amount of TL 3,268,784 of Includes subordinated bonds which are classified on the balance sheet as subordinated loans.
(4)
The borrower funds are presented in “Up to 1 month” column in other liabilities.