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CORPORATE GOVERNANCE
İŞBANK
ANNUAL REPORT 2014
79
EXPLANATIONS ON FINANCIAL CONDITION, PROFITABILITY AND
SOLVENCY
In 2014, İşbank’s total assets increased by 13.0% and reached TL 237.8 billion.
The major contribution to the growth of asset size was made by the loans that reached TL 155.3 billion increasing by 15.2%. In 2014, TL-
denominated loans increased by 15.3%while the growth in foreign currency loans was 15.1%. When the impact of the FX rate is excluded,
the increase in foreign currency loans was 5.0%.
As of 2014 year-end, 65.3% of total assets was composed of loans while securities portfolio constituted 17.2% of the total assets.
In 2014, the ratio of the non-performing loans decreased to 1.5% (well below the sector average) with the impact of the healthy growth in
the loans and solid collection performance.
In 2014, total deposits reached TL 133.6 billion increasing by 10.4%. In this period, TL-denominated deposits increased by 9.9%while
foreign currency deposits were up by 11.1%. When the impact of the FX rate is excluded, the increase in foreign currency deposits stood at
1.4%. In the same period, TL-denominated savings deposits increased by 10.3% and reached TL 50.0 billion. The ratio of TL-denominated
savings deposits in total portfolio was 37.5% as of year-end. It is one of the major indicators of İşbank’s widespread and reliable deposit
base.
Within the framework of its policies regarding effective cost management, resource diversification and extending the maturity structure,
throughout 2014, İşbank continued to deploy non-deposit resources (such as loans, repurchase transactions and securities issues). In 2014,
deposits continued to be the main funding resource in total liabilities with 56.2%while the share of non-deposit resources in total liabilities
was 24.7%.
İşbank’s shareholders’ equity reached TL 29.3 billion at the end of 2013; accordingly the Bank maintained its leadership in terms of
shareholders’ equity in the sector. As of year-end, the capital adequacy ratio of the Bank – reaching 16% – was well above the legal limit.
Although the net interest margin decreased slightly in 2014 compared to 2013, İşbank’s net interest revenues increased by 12.0% as a
result of the increase in the volume of interest-earning assets in parallel to the growth in total loans.
Furthermore, net fees and commissions income increased by 4.4% in 2014.
In 2014, İşbank’s net profit stood at TL 3.4 billion while its return on equity was 13.1% and return on assets was 1.5%.