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TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements for the Year Ended
31 December 2014
221
İŞBANK
ANNUAL REPORT 2014
FINANCIAL INFORMATION AND
RISK MANAGEMENT
f. Information on provision for impairment on loans and other receivables:
Current Period
Prior Period
Specific Provisions for Loans and Other Receivables
1,000,065
930,449
Group III Loans and Receivables
126,989
84,708
Group IV Loans and Receivables
263,449
236,394
Group V Loans and Receivables
609,627
609,347
General Loan Provision Expenses
(1)
398,986
433,531
Provision Expenses for Potential Risks
Impairment Losses on Marketable Securities
4,425
34,665
Financial Assets at Fair Value through Profit and Loss
2,922
32,809
Financial Assets Available for Sale
1,503
1,856
Impairment Losses on Investments in Associates, Subsidiaries, Jointly Controlled Entities and Investments Held to Maturity
291
10,458
Associates
291
Subsidiaries
10,458
Jointly Controlled Entities
Investments Held to Maturity
Other
126,346
245,598
Total
1,530,113
1,654,701
(1)
General provisions for current period were allocated with the scope temporary 8 substance of the Determining the Nature of Loans and Receivables and Principles and Procedures on the Allocation of Loan and
Receivable Provisions.
g. Other operating expenses:
Current Period
Prior Period
Personnel Expenses
(1)
2,952,787
2,713,365
Reserve for Employee Termination Benefits
53,630
40,545
Bank Pension Fund Deficit Provisions
122,568
5,221
Impairment Losses on Tangible Assets
3,325
Depreciation Expenses of Tangible Assets
260,797
239,852
Impairment Losses on Intangible Assets
Impairment Losses on Goodwill
Amortization Expenses of Intangible Assets
144,680
114,985
Impairment Losses on Investments Accounted Under Equity Method
Impairment Losses on Assets to be Disposed
2,566
1,250
Depreciation Expenses of Assets to be Disposed
6,153
8,048
Impairment Losses on Assets Held for Sale and Subject to Discontinued Operations
Other Operating Expenses
1,911,332
1,652,335
Operational Lease Related Expenses
272,197
217,937
Repair and Maintenance Expenses
39,304
34,751
Advertisement Expenses
(2)
219,579
197,132
Other Expenses
(2)
1,380,252
1,202,515
Loss on Sale of Assets
(3)
275,124
105,236
Other
3,785,767
3,424,077
Total
9,515,404
8,308,239
(1)
According to “TAS 19-Employee Benefits”, it includes provision for the payments that will be made to employees such as dividend distribution etc.
(2)
Expense amount of the Bank’s donation, contributions and social responsibility projects is TL 28,295 in the current period. (31 December 2013: TL 24,983)
(3)
In the current period, due to the sale of Antgıda Gıda Tarım Turizm ve Enerji ve Demir Çelik Sanayi Ticaret A.Ş, a loss of TL 132,245 TL was realized. On the other hand, due to the sale of that subsidiary, there was
a provision reversal amounting to TL 132,278. As a result of the sale, a profit of TL 33 was recognized in the current period. In addition, in the current period, due to the sale of a factory building real estate, a loss of
TL 134,539 TL was realized. On the other hand, due to this sale, there was a provision reversal amounting to TL 128
,833.Asa result of the sale, a profit of TL 5,706 was recognized in the current period. In the prior
period, due to the sales of Bayek Tedavi Sağlık Hizmetleri ve İşletmeciliği A.Ş. and Mipaş Mümessillik İthalat İhracat ve Pazarlama A.Ş, a loss of TL 97,334 TL was realized. On the other hand, due to the sales of relevant
subsidiaries, there was a provision reversal amounting to TL 111,843. As a result of the sales, a profit of TL 56,576 was recognized in the prior period.
On the table above, TL 2,912,558 of other operating expense includes insurance and reinsurance companies’ expenses which are related with their operations. The paid claims
comprise almost this entire amount both in current and prior period (31 December 2013: TL 2,434,533). Also in the current period, the Other item includes TL 117,397 of expenses
related with credit fee returns of the Parent Bank, which was recognized as income in prior years. TL 127,271 of the Other item is the provision expenses for the lawsuit files against
the Group that is related with the Munzam Sosyal Güvenlik ve Yardımlaşma Sandığı Vakfı (Vakıf)” which is explained in the Section Five Note II-h.5.4. In the prior period, the Other
item included provision expenses amounting to TL 323,684, which was related to the investigation held by Turkish Competition Board and the lawsuit files against “Munzam Sosyal
Güvenlik ve Yardımlaşma Sandığı Vakfı”.
h. Information on profit/loss before taxes including profit/loss from continuing and discontinued operations
The Group’s profit before tax is generated from its continuing operations. The profit before tax consists of net interest income of TL 8,470,409, net fee and commission income of TL
1,505,183 and the other operation expenses amount to TL 9,515,404.