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TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements for the Year Ended
31 December 2014
223
İŞBANK
ANNUAL REPORT 2014
FINANCIAL INFORMATION AND
RISK MANAGEMENT
VII. Disclosures and Footnotes on the Group’s Risk Group
a. Information on the volume of transactions relating to the Group’s risk group, incomplete loan and deposit transactions and period’s profit and loss:
a.1. Information on loans held by the Group’s risk group:
Current Period:
Group’s Risk Group
Investments in Associates,
Subsidiaries and Jointly Controlled
Entities (Joint Ventures)
Direct and Indirect
Shareholders of the Bank
Other Real Persons and
Corporate Bodies that have
been Included in the Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Loans and other receivables
Balance at the beginning of the period
15,375
1,426,296
553,135
246,217
Balance at the end of the period
1,228
1,490,797
443,998
237,884
Interest and commission income received
3,954
488
34,904
1,270
Prior Period:
Group’s Risk Group
Investments in Associates,
Subsidiaries and Jointly Controlled
Entities (Joint Ventures)
Direct and Indirect
Shareholders of the Bank
Other Real Persons and
Corporate Bodies that have
been Included in the Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Loans and other receivables
Balance at the beginning of the period
67,477
1,308,746
1
499,699
218,714
Balance at the end of the period
15,375
1,426,296
553,135
246,217
Interest and commission income received
1,557
284
39,283
1,251
a.2. Information on deposits held by the Group’s risk group:
Group’s Risk Group
Investments in Associates,
Subsidiaries and Jointly Controlled
Entities (Joint Ventures)
Direct and Indirect
Shareholders of the Bank
Other Real Persons and
Corporate Bodies that have
been Included in the Risk Group
Current Period
Prior Period
Current Period
Prior Period Current Period
Prior Period
Deposits
Balance at the beginning of the period
391,051
798,050
352,420
385,728
1,625,580
1,107,605
Balance at the end of the period
523,900
391,051
206,316
352,420
2,469,021
1,625,580
Interest expense on deposits
16,165
18,958
29,940
45,462
50,039
38,176
a.3. Information on forward and option and other similar agreements made with the Group’s risk group:
Group’s Risk Group
Investments in Associates,
Subsidiaries and Jointly Controlled
Entities (Joint Ventures)
Direct and Indirect
Shareholders of the Bank
Other Real Persons and
Corporate Bodies that have
been Included in the Risk Group
Current Period
Prior Period
Current Period
Prior Period Current Period
Prior Period
Transactions at Fair Value Through Profit and Loss
Beginning of the period
817
End of the period
Total Profit/ Loss
10,850
344
Transactions for hedging purposes
Beginning of the period
End of the period
Total Profit/ Loss
b. Disclosures for the Group’s risk group:
b.1. The relations of the Group with corporations in its risk group and under its control regardless of any transactions between the parties:
All types of corporate and retail banking services are provided to these corporations in line with the articles of Banking Law.
b.2. The type and amount of transaction carried out, and its ratio to the overall transaction volume, values of principal items and their ratios to overall items, pricing policy and
other items in addition to the structure of the relationship:
The transactions carried out are mainly loan and deposit transactions. The ratio of loans extended to the risk group to the overall loans is 0.26%, while the ratio to the overall assets is
0.16% the ratio of deposits of the risk group corporations to the overall deposits is 2.38%, while the ratio to overall liabilities is 1.16%. The same pricing policy with third parties is used
for the financial services provided to companies in the Parent Bank’s risk group.
b.3. Purchase and sale of real estates, other assets and services, agency agreements, finance lease contracts, transfer of information obtained through research and
development, license agreements, funding (including loans and provision of support as cash capital or capital-in-kind), guarantees and collaterals, and management agreements:
The Parent Bank’s branches act as agents for Anadolu Anonim Türk Sigorta Şirketi and Anadolu Hayat Emeklilik A.Ş. Furthermore, through its branches the Parent Bank also acts as
agent for İş YatırımMenkul Değerler A.Ş.. Of the 26 mutual funds, which were founded by the Parent Bank are managed by İş Portföy Yönetimi A.Ş.. 22 of the mutual funds, which were
founded by Anadolu Hayat Emeklilik A.Ş., are managed by İş Portföy Yönetimi A.Ş..
If requested, cash and non-cash loan requirements of corporations within the risk group are met in accordance with the limits imposed by the Banking Law and the prevailing market
conditions.