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86
İŞBANK
ANNUAL REPORT 2014
Page
SECTION I
General Information about the Bank
I.
Explanations on the Establishment Date and Initial Status of the Bank, History Including the Changes in the Former Status
87
II.
Explanations on the Capital Structure, Shareholders who Directly or Indirectly, Solely or Jointly Undertake theManagement and Control of the Bank,
any Changes in the Period, and Information on the Bank’s Risk Group
87
III.
Explanations on the Chairman’s, Directors’, Auditors’, Chief Executive Officer’s and Deputy Chief Executives’ Shares, if any, and the Areas of their Responsibility at the Bank
87
IV.
Information on the Bank’s Qualified Shareholders
87
V.
Summary Information on the Bank’s Activities and Services
87
VI.
Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholder’s Equity Between the Bank and its Subsidiaries or the Reimbursement of Liabilities
87
VII.
Written Policies on Assessment of Ensuring Compliance onMarket Discipline, Disclosure Obligations, Frequency and Accuracy of Related Disclosures
87
SECTION II
Unconsolidated Financial Statements
I.
Balance Sheet (Statement of Financial Position) – Assets
88
II.
Balance Sheet (Statement of Financial Position) – Liabilities and Equity
89
III.
Statement of Off-Balance Sheet Items
90
IV.
Income Statement
92
V.
Statement of Income and Expense Items Accounted under Shareholders’ Equity
93
VI.
Statement of Changes in Shareholders’ Equity
94
VII.
Statement of Cash Flows
96
VIII.
Statement of Profit Distribution Table
97
SECTION III
Explanations on Accounting Policies
I.
Basis of Presentation
98
II.
Strategy for Use of Financial Instruments and Foreign Currency Transactions
98
III.
Associates and Subsidiaries
98
IV.
Forward and Option Contracts and Derivatives Instruments
98
V.
Interest Income and Expenses
99
VI.
Fee and Commission Income and Expenses
99
VII.
Financial Assets
99
VIII.
Impairment of Financial Assets
100
IX.
Offsetting Financial Instruments
100
X.
Sale and Repurchase Agreements and Securities Lending Transactions
100
XI.
Non-current Assets Held for Sale and Discontinued Operations and Related Liabilities
100
XII.
Goodwill and Other Intangible Assets
100
XIII.
Tangible Assets
100
XIV.
Leasing Transactions
101
XV.
Provisions and Contingent Liabilities
101
XVI.
Contingent Assets
101
XVII.
Liabilities Regarding Employee Benefits
101
XVIII.
Taxation
102
XIX.
Borrowings
103
XX.
Equity Shares and Issuance of Equity Securities
103
XXI.
Bank Acceptances and Bills of Guarantee
103
XXII.
Government Incentives
103
XXIII.
Segment Reporting
103
XXIV.
Other Disclosures
103
SECTION IV
Information on the Financial Position and Risk Management of the Bank
I.
Explanations on Capital Adequacy Ratio
103
II.
Explanations on Credit Risk
108
III.
Explanations onMarket Risk
115
IV.
Explanations on Operational Risk
116
V.
Explanations on Currency Risk
116
VI.
Explanations on Interest Rate Risk
117
VII.
Explanations on Equity Shares Risk Arising fromBanking Book
120
VIII.
Explanations on Liquidity Risk
121
IX.
Explanations on Securitization Positions
123
X.
Explanations on Credit Risk Mitigation Techniques
123
XI.
Explanations on Risk Management Objectives and Policies
123
XII.
Explanations on Other Price Risks
124
XIII.
Explanations on the Presentation of Assets and Liabilities at Fair Value
124
XIV.
Explanations on Transactions Carried out on Behalf of Third Parties and Fiduciary Transactions
125
XV.
Explanations on Segment Reporting
125
SECTIONV
Disclosures and Footnotes on the Unconsolidated Financial Statements
I.
Disclosures and Footnotes on Assets
128
II.
Disclosures and Footnotes on Liabilities
138
III.
Disclosures and Footnotes on Off-Balance Sheet Items
143
IV.
Disclosures and Footnotes on Income Statement
144
V.
Disclosures and Footnotes on Statement of Changes in Shareholders’ Equity
147
VI.
Disclosures and Footnotes on Statement of Cash Flows
148
VII.
Disclosures and Footnotes on the Bank’s Risk Group
148
VIII.
Disclosures on the Bank’s Domestic, Foreign, Off Shore Branches or Associates and Foreign Representatives
149
IX.
Subsequent Events
149
SECTIONVI
Other Explanations
I.
Explanations on the Bank’s Credit Ratings
150
II.
Explanations on Special Purpose Audit and Public Audit
150
SECTIONVII
Independent Auditors’ Report
I.
Explanations on the Independent Auditors’ Report
150
II.
Explanations and Footnotes of the Independent Auditors
150