Asya Katılım Bankası A.Ş.

Transkript

Annual Report 2009
Contents
Presentation
2 Mission, Vision, Objectives
3 Corporate Profile
6 Key Highlights
8 Bank Asya’s Standing in the Industry
10 Bank Asya’s Growth Strategy
14 History
16 Changes in Capital and Shareholder Structure During the Reporting Period
20 A Message from Tahsin Tekoğlu
21 A Message from the Board of Directors
24 A Message from Ünal Kabaca
25 CEO’s Message
30 Macroeconomic Overview and the Banking Sector
36 Assessment of Bank Asya’s Activities in 2009
50 Corporate Social Responsibility
51 Subsidiaries and Affiliates
52 Independent Auditors’ Compliance Opinion on Annual Report
Information on Management and Corporate Governance Practices
54 Board of Directors
56 Statutory Auditors
58 Senior Management
60 Organization Chart
62 Committees
64 Summary Annual Report 66 Human Resources 68 Transaction Volume of the Risk Group of the Bank, Outstanding Loan and Deposit Balances and Current Income and Expense Amounts 69 Corporate Governance Principles Compliance Report 76 The bank’s Profit Distribution Policy 76 Proposal to Distribute Bank Asya 2009 Year Profits 77 2009 Ordinary General Meeting Agenda 78 Explanatory notes concerning the items on the 2009 Ordinary General Meeting Agenda
Assessment on Financial Information and Risk Management
80 Concise Statutory Auditors Report
81 5-Year Summary Financial Information Including the Reporting Period
82 Financial Standing, Profitability, and Debt Service Ability
82 Assessment of the Audit Committee’s Internal Systems and Their Operation
84 Information About Internal System Unit Managersr 85 Risk Management Policies Being Implemented According to Risk Types
87 Credit Ratings and Reports
88 Independent Auditors’ Report for the Year January 1, 2009 – December 31, 2009
161 Independent Auditors’ Report, Consolidated Financial Statements and Notes for the Year Ended December 31, 2009
237 Branches
Bank Asya Annual Report 2009
1
Innovation and
strong growth
Although Bank Asya is the youngest participation bank, it
has achieved a solid and respected position as the sector’s
fastest growing participant. The Bank is firmly committed to
a strategy of sound and sustained growth, and has made it
an integral part of its corporate structure.
As the first participation bank to go public, Bank Asya
continuously develops its product and service line up in
order to meet changing needs and expectations of its
customers in retail, commercial, corporate and enterprise
banking business lines.
Bank Asya will continue to enhance its brand value gained
in domestic and international markets as an example of
active participation bank with innovation and unique
growth dynamics.
2
Mission
To contribute to shareholder value and Turkish economy by developing
modern banking services within the framework of interest-free banking
principles and satisfying customer needs and expectations with a
“different solutions for different expectations” approach
Vision
To be a respected, trusted, and effective bank that provides service at
world standards through the products that it develops.
Bank Asya’s Objectives
•To be one of the leading interest-free banks. (According to 2008
results it ranked 520th in terms of shareholders’ equity.)
•To be the bank with the highest brand value in Turkey.
•To rank in the forefront of companies where highly qualified
professionals would strive to work.
•To increase its market share.
•To be a bank that pioneers innovations in its sector.
•To sustain the support of social responsibility projects such as social
activities and sports.
3
Corporate Profile
Having commenced activities in 1996 as “Asya Finans”, Turkey’s sixth private finance house, Bank Asya has since
then achieved a strong and respected position as the banking industry’s fastest-growing actor even though it is
the sector’s newest participation bank entry.
Bank Asya is firmly committed to a strategy of sound and sustainable growth, which it has made an integral
part of its corporate structure. As the first participation bank in Turkey to go public in order to establish a solid
and broad capital base, Bank Asya launched a 23% initial public offering in 2006. As of end-2009, 50.9% of
the bank’s capital was publicly held. Supported by a multi-shareholder, domestically-financed capital structure,
Bank Asya increased its paid-in capital to TRY 900 million in 2008.
Bank Asya continuously develops its product and service lineup in order to meet the changing needs and
expectations of its customers with a proactive approach in the retail banking, commercial banking, corporate
banking, and enterprise banking business lines. As the first participation bank in Turkey to be awarded ISO
9001:2000 Quality Management System certification, Bank Asya seeks to reinforce its market share by making
an ever greater effort to:
• Develop interest-free banking products and come up with new derivative products in this field.
• Adapt widely used banking products into the interest-free banking system.
In keeping with its principle of investing in the future, Bank Asya invests both in people and in technology.
It deploys advanced technology in order to continuously strengthen the momentum of its own growth by
supporting youthful, dynamic, and development-focused human resources who identify with its corporate
values.
In 2009 Bank Asya’s “AsyaCard
DIT” product received both the
“Best Cash Displacement Initiative”
award in the “Visa Europe Best
Card & Payment Sector Awards”
and the Cards & Payments
Organization’s “Best New Credit
Card Product Launch” award.
Having expanded the scope of its delivery network through investments in technological infrastructure and
alternative distribution channels in addition to its 158 branches, Bank Asya has been particularly successful in
gaining increasingly more frequent recognition in recent years for the innovative payment system products that
it has introduced. AsyaCard DIT (Europe’s most advanced contactless credit card) and DIT Pratik (Turkey’s first
prepaid contactless bank card), both of which have been made available for the use of the bank’s customers, are
but two examples of how Bank Asya continues to distinguish itself in the market.
Bank Asya regards social involvement as an aspect of being a productive and profitable bank whose importance
goes beyond the purely economic and financial dimensions. For this reason, it defines its strategic goals out of
its awareness that its own sustainability can only be achieved by creating more value for all of its stakeholders.
Transforming a business model which is based on supporting the real sector and production and which is
informed by the fundamental principles of interest-free banking into an effective example of participation
banking through its management competencies, funding practices, risk and quality policies, innovativeness, and
unmatched growth dynamics, Bank Asya will continue to enhance the brand value that it has achieved in its
national market and in the international arena.
In 2009 Bank Asya increased the
number of its branches from 149
to 158 with the addition of nine
new ones located outside İstanbul.
4
12-month rise in
deposits:
56.4%
Trustworthiness, sustained growth,
effective risk management, business
continuity, and productivity are all
Bank Asya’s top strategic priorities.
22.2%
12-month rise
in cash loans:
30.9%
Maintaining a solid
capital structure, Bank
Asya increased its
capital adequacy ratio
to 14.45% in 2009.
Posting a 22.2% rate of
profitability in 2009, Bank
Asya’s standing as the most
profitable participation
bank in Turkey has been
unchallenged for the last
three years in a row.
DIT Pratik, Turkey’s first
prepaid contactless
bank card, was the
undisputed leader of its
category in 2009.
43.2%
Extraordinary growth in total assets
In the year to end-2009, Bank Asya’s total
assets grew 43.2% and reached TRY 11.6
billion. This growth in the bank’s assets
was nourished primarily by its loans.
With nearly 51% of its
stock publicly held, Bank
Asya is committed to
strict compliance with
corporate governance
principles in its ongoing
efforts to maximize
fulfillment of its
responsibilities towards
its shareholders and all
other stakeholders.
51%
publicly
held
Goal
To be a model bank along
all three axes of quality,
productivity, and profitability.
5
6
The leader of
participation
banking…
During 2009 Bank Asya sustained both its growth and its
profitability in line with its identified targets thanks to its solid
capital base and to its evenhanded balance sheet structure. Bank
Asya remained the leader of participation banks in Turkey in 2009
in terms of total assets, total loans, non-cash loans, deposits, and
net profit. It registered above sector average growth as measured
by total assets, total loans, and total deposits.
Total Assets
Shareholders’ Equity
Net Period Profit
(TRY billion)
(TRY billion)
(TRY million)
1.7
11.6
43%
1.4
301
22%
247
22%
8.1
08
09
08
09
08
09
7
Key Highlights
Key Financial Highlights (TRY thousand)
Total Assets
Cash Loans (*)
Deposits
Paid-in Capital
Non-cash Loans
Net Period Profit
2008
8,108,829
6,381,322
5,842,821
1,403,692
900,000
10,215,415
246,529
2009
11,608,955
8,355,346
9,136,578
1,707,894
900,000
8,885,977
301,281
Change (%)
43.2
30.9
56.4
21.7
0.0
(13.0)
22.2
Information on Branches and Personnel
Number of Branches
Number of Personnel
2008
149
3,806
2009
158
4,074
Change (%)
6.0
7.0
Key Financial Ratios (%)
Cash Loans/Total Assets
Deposits/Total Assets
Cash Loans/Deposits
Return on Equity
Return on Assets
Capital Adequacy Ratio
Shareholders’ Equity/Total Assets
2008
78.7
72.1
105.4
21.8
3.4
13.40
17.3
2009
72.0
78.8
91.5
19.4
3.1
14.45
14.7
14th
In the third quarter of 2009,
Bank Asya stood in 14th
position among Turkey’s
largest banks on the basis of
its total assets.
(*) including leasing receivables.
Assets Composition
Liabilities Composition
Income Composition
(%)
(%)
(%)
15
22
79
72
3
3
08
3
3
09
Liquid Assets
Cash Loans
Fixed Assets
Others
72
79
6
2
15
4
17
5
08
09
Deposits
Borrowings
Other
08
58
57
26
24
16
19
09
Net Profit Share Income
Net Commissions
Other Income
8
Bank Asya’s Standing in the Industry
Total Assets-Change
Cash Loans-Change
(%)
(%)
43
31
Deposits-Change (%)
56
30
40
30
13
14
5
7
12
Shareholders’ Equity-Change Net Period Profit-Change Non-cash Loans-Change (%)
(%)
(%)
30
56
28
50
13
7
7
63
63
22
19
(1)
22
10
(13)
Total Loans-Change Non-performing LoansChange (%)
(%)
14
56
Provisions-Change
(%)
56
75
64
40
7
6
4
41
9
Number of Personnel-Change
Number of Branches-Change
(%)
(%)
7
7
6
6
3
0,43
Bank Asya
Participation Banks
Deposit Banks
Banking Industry
2
1
Total Assets
Net Period Profit/Loss
Loans
(%)
(%)
(%)
(%)
34.5
38.6
65.5
42.5
61.4
65.3
57.5
Deposits
Number of Branches
Number of Personnel
(%)
(%)
(%)
34.7
34.2
27.8
34.5
65.8
72.2
65.5
Bank Asya
Other Participation Banks
10
Bank Asya’s Growth Strategy
Bank Asya successfully reflected its growth strategy in its 2009 results through
the implementation of its insightful processes and practices.
Bank Asya shapes its strategies around the underlying goal of being one of the most important brands in the participation
banking business line not just in Turkey but throughout the world. Acting in line with the principles of sustainable growth
whose aim is to achieve this underlying goal, the bank focuses on creating more value not just for the economy but
for society as a whole. Bank Asya is committed to being a model bank along all three axes of quality, productivity, and
profitability. It invests in both technology and people in order to make its proactive, customer-focused service philosophy a
reality in all aspects. Bank Asya is a transparent bank which continuously improves its processes and systems in line with the
requirements of the day and which embodies the very best of corporate governance principles and practices.
Solid capital base
14.45% capital adequacy ratio (Tier 1)
Rapid increase in deposits
56.4% rise in deposits (13th in sector)
Longer average terms on deposits
100+ day average deposit maturity
High liquidity
106.2% rise in liquid assets
Sustainably high profitability
22.2% increase in net profit
19.4% return on equity
Effective credit and risk
management
Deeper customer relations
30.9% growth in cash loans
Increased diversity in loans
13th in cash loans
High rate of NPL recovery
5.3% ratio of NPL/cash loans
Lower NPL ratio
2.6% ratio of NPL/total loans
Increased loan loss reserves
70.7% NPL coverage
Effective product and brand
management
Growth in innovative products
Greater brand awareness (Sponsorships
and effective advertising and promotion)
Success
Effective
Effective resource management
AsyaCard DIT: Leader of the contactless card
market with two international awards
25% rise in credit card turnover
10th in sector with 1.5 million credit cards
High profile with Bank Asya 1st League
(Soccer league)
Bank Asya’s Competitive Advantages
• Leader among participation banks as measured by total assets, deposits, loans, and profitability
• Experienced in crisis management
• Qualified young staff
• Customers trust Bank Asya
• Dynamic, growing structure
• Fast and efficient technology deployment
• Leader in innovation
• Strong team spirit and sense of identity throughout the bank
Bank Asya’s Strategic Orientation in 2010-2014
Trustworthiness, stable growth, effective risk management, business continuity, and productivity are Bank Asya’s
top strategic priorities. Having clearly and explicitly defined its objectives in line with its corporate vision, Bank
Asya groups its strategies to achieve those objectives under four main headings:
• Financial
• Operational excellence
• Stakeholders
• Personnel & progression
In the same way, Bank Asya has laid out a five-year roadmap whose course is defined by these strategies.
Sustainable growth and
profitability
Increase use of technology
Strengthen financial structure
Increase effectiveness of
business processes
Targets concerning subsidiaries
and affiliates
Increase effectiveness of risk
management practices
OPERATIONAL
EXCELLENCE
FINANCIAL
STABLE GROWTH
EFFECTIVE RISK
MANAGEMENT
TRUST
PRODUCTIVITY
BUSINESS CONTINUITY
PERSONNEL &
PROGRESSION
STAKEHOLDERS
Increase employees’ knowledge
levels
Maximize customer satisfaction
Increase employees’
communication effectiveness and
competencies
Offer different solutions capable
of addressing different customer
expectations
Broaden strategy- and
performance-focused management
Ensure sustainable dividend
payment to shareholders
11
12
Asya Finans Kurumu AŞ
(Asya Private Finance
House Inc) commences
operation on 24 October
1996
1996
Asya Finans is
brought within the
scope of the Banks
Act.
1999
Alo Asya (444 4
888) telephone
banking services are
launched.
2000
The Asya Finans
online branch goes
into service.
2004
13
Highly impressive performance
Bank Asya is cited in The Banker
magazine’s list of the world’s 1,000
biggest banks for its highly impressive
performance.
2009
2008
The new
headquarters
building goes into
service.
2007
AsyaCard DIT (Europe’s
most advanced contactless
credit card) and DIT Pratik
(Turkey’s first prepaid
contactless bank card) are
made available for the use
of the bank’s customers.
With an IPO in
which 23% of its
shares are snapped
up due to recordbreaking demand,
Bank Asya goes
public.
2006
2005
It is decided to continue Asya
Finans’s operations as “Bank Asya”.
13th year
Originally founded with TRY 2 million in
capital, Bank Asya commenced operation on
24 October 1996 with its main branch located
in the Altunizade district of İstanbul. Now in
its 13th year, it is a strongly funded bank with
a capital of TRY 900 million.
14
The youngest and
fastest-growing…
Having commenced operation in 1996 as “Asya Finans”, Turkey’s sixth
private finance house, Bank Asya has since then achieved a strong
and respected position as the banking industry’s fastest-growing
actor even though it is the sector’s newest participation bank entry.
15
History
1996
Originally founded with TRY 2 million in
capital, Asya Finans Kurumu AŞ (Asya Private
Finance House Inc) commences operation on
24 October 1996 with its main branch located
in the Altunizade district of İstanbul.
1997
The number of branches reaches 15.
The company’s paid-in capital is increased to
TRY 40 million.
2004
Alo Asya (444 4 888) telephone banking
services for retail and corporate customers are
launched.
2007
Continued heavy trading in ASYAB shares
results in their inclusion in the ISE-30 index.
The company’s new headquarters building in
the Ümraniye district of İstanbul goes into
service.
1998
The company undergoes a headquarters
reorganization in which the number of units is
increased to 24.
2008
Asya Finans joins the Joint Point system,
enabling its customers to access their accounts
from any of more than 2,400 Joint Point ATM
units located all over the country.
The company undergoes a headquarters
reorganization in which the number of units is
increased to 40.
Asya Finans launches the Asya Finans credit
card for its customers.
1999
Asya Finans is brought within the scope of the
Banks Act.
TRY 10 million.
2000
The Asya Finans online branch goes into
service.
2001
TRY 120 million.
2005
As a result of amendments in the Banks Act,
private finance houses are given a year’s time
during which they must bring themselves into
compliance with “participation bank” status.
The Association of Private Finance Houses is
set up and a Guarantee Fund is formed.
Control of the Guarantee Fund is turned over
to the Savings Deposit Insurance Fund.
TRY 20 million.
Asya Finans Kurumu AŞ is reincorporated as
Asya Katılım Bankası AŞ. (Asya Participation
Bank Inc) and it is decided to continue Asya
Finans’s operations as “Bank Asya”.
2002
The company launches an installment-based
credit card and the ASYA24 ATM network for
its customers.
“Regulations concerning the Private Finance
House Private Current and Participation
Account Guarantee Fund” go into effect on
September 18th.
TRY 40 million.
2003
Asya Finans is licensed by the finance ministry
to accept tax payments.
Asya Finans customers begin making credit
card payments and money transfers through
online PTT offices located all over the country.
Asya Finans joins the VISA system on October
24th.
TRY 240 million.
2006
Bank Asya increases its paid-in capital to TRY
300 million as a result of an initial public
offering in which 23% of its shares are
snapped up due to record-breaking demand.
Bank Asya begin trading on the İstanbul Stock
Exchange under the ASYAB ticker symbol on
May 12th. Heavy trading in the company’s
shares qualifies it for inclusion in the ISE-50
index of most-traded shares by the end of the
same year.
Bank Asya celebrates its 10th year in the
financial services industry.
Bank Asya becomes a named sponsor of the
Turkish Football Federation 1st League.
AsyaCard DIT (Europe’s most advanced
contactless credit card) and DIT Pratik (Turkey’s
first prepaid contactless bank card) are made
available for the use of the bank’s customers.
With the launching of the first transportation
system project in the city of Kahramanmaraş
in southeastern Turkey, people begin using
AsyaCard DIT to pay bus fares.
TRY 900 million.
2009
The number of cities in which municipal bus
fares can be paid using AsyaCard DIT reaches
four with the introduction of the system in
Karabük, Balıkesir, and Bolu.
AsyaCard DIT receives both the “Best Cash
Displacement Initiative” award in the “Visa
Europe Best Card & Payment Sector Awards”
and the Cards & Payments Organization’s “Best
New Credit Card Product Launch” award.
The AsyaCard website located at www.
asyacard.com.tr receives the “Best in Class”
award from Interactive Media.
Bank Asya signs a strategic partnership
agreement with the Islamic Corporation for
the Development of the Private Sector (ICD),
an agency of the Islamic Development Bank
(IDB), and becomes a shareholder in Tamweel
Africa Holding SA, a Senegal-based company
that engages in interest-free banking in Africa.
Bank Asya is cited in The Banker magazine’s
list of the world’s 1,000 biggest banks for its
highly impressive performance.
16
Changes in Capital and Shareholder Structure
During the Reporting Period
255
Bank Asya has a broadbased, multi-shareholder,
domestically-financed
capital structure. The
closely-held portion of
the company’s capital
was divided among 255
shareholders who are the
direct owners of preference
shares.
Bank Asya’s shareholder structures at the beginning and end of 2009 are shown in the table below.
1 Jan 2009
%
31 Dec 2009
%
Group A (preference shares)
360,000,000
40.00
360,000,000
40.00
Group B (not traded on ISE)
130,504,653
14.50
82,014,186
9.11
Group B (traded on ISE)
409,495,347
45.50
457,985,814
50.89
Total
900,000,000
100.00
900,000,000
100.00
Shareholding interests held by Chairman and members of the Board of Directors, CEO and Executive
Vice Presidents
Statements concerning the shareholding interests belonging to the Chairman and members of the Board of
Directors, CEO and Executive Vice Presidents as shown in its shareholders’ register as of 31 December 2009 are
presented below.
Title
Name/Surname
Ownership in the bank (%)
Chairman
Tahsin Tekoğlu (*)
0.0050
Board Members
Cemil Özdemir (**)
0.0026
Tacettin Negiş (***)
0.2467
Salih Sarıgül
0.4983
Ahmet Çelik
0.4467
Murat Sungurlu
0.1073
Board Member and CEO
Ünal Kabaca (**)
0.0267
Executive Vice Presidents
Ayhan Keser
0.0069
Mustafa Büyükateş
-
Yusuf İzzettin İmre
-
Buket Gereçci
-
Dr. Mahmut Demirkan
-
Ali Tuğlu
-
Group Manager
Salim Köse
-
Statutory Auditors
Ali Akbulut
0.0002
Atıf Bilgin
0.3057
İrfan Hacıosmanoğlu
2.0068
(*) Tahsin TEKOĞLU resigned from both his seat on the Board of Directors and his position as Chairman of the Board of Directors as of 12 February
2010. Behçet AKYAR was elected to replace him as : Chairman of the Board of Directors while İsmail Erol İŞBİLEN was elected to serve both as
director and Audit Committee member.
(**) Ünal KABACA resigned from both his seat on the Board of Directors and his position as CEO as of 28 January 2010. Deputy Chairman of the
Board of Directors Cemil ÖZDEMİR was elected to replace him as CEO while Behçet AKYAR was elected to a seat on the board.
(***) Tacettin NEGİŞ was elected to serve as a member of the Audit Committee as of 12 February 2010.
17
Names and Shareholding Interests of Shareholders Who Own Qualified Shares
The names of ultimate controlling real-person shareholders who are registered in Bank Asya’s shareholders’ register as of 31 December 2009 and
whose direct and indirect ownership of Group A preference shares entitles them to designate candidates to fill seats on the Board of Directors and
Audit Committee as per articles 32 and 49 of the articles of association are presented below. (*) (**)
No
Name/Surname
Share in
the Bank (%)
No
Name/Surname
Share in
the Bank (%)
No
Name/Surname
Share in
the Bank (%)
Tuncay Baydak
0.0500
71
Sadi Çakar
0.1000
37
Bahri Bayram
0.0272
72
Şerafettin Çakar
0.1250
38
M. Salih Bayram
0.0272
73
İbrahim Çakır
0.0500
39
Mehmet Emin Bayram
0.0685
74
Ahmet Hamdi Çakmaz
0.2012
40
A. Selçuk Berksan
1.4960
75
Ahmet Çelik
0.5844
0.4872
41
Ahmet Levent Berksan
1.1362
76
Ahmet Çelik
0.0500
Ali Ağaç
0.0000
42
Ayse Tülin Berksan
0.0494
77
Hüseyin Çelik
0.2500
Recep Ağaç
0.0000
43
Bülent Berksan
1.4325
78
Mustafa Çelik
0.0025
1
Işıl Abay
2
Adem Acar
0.2417
3
Lutfi Acet
0.0242
4
Ali Açıl
0.0448
5
Elif Adıyaman
0.0365
6
Kazım Afşar
7
8
9
Yalçın Akarsu
10
Ali Akbulut
11
0.3717
36
0.1517
44
Fatma Emine Berksan
2.5000
79
Ömer Lütfi Çelik
0.0002
13.2858
45
Mehmet Sinan Berksan
1.6667
80
Saffet Çerçi
0.2000
Cemil Akbulut
0.0010
46
Mehmet Berksan
1.4325
81
Doğan Çetin
0.0500
12
Fikri Akbulut
3.0534
47
Ömer Faruk Berksan
0.5129
82
Cengiz Çırak
0.0508
13
Hakan Cem Akbulut
1.0002
48
Atıf Bilgin
0.5900
83
İsmail Cem Çitak
0.0308
14
Mustafa Akbulut
0.0333
49
Mustafa Bilgin
0.0500
84
Cahit Değerli
0.0019
15
Şükran Akbulut
0.0050
50
Ayşe İfakat Bilginoğlu
0.3783
85
Mustafa Demir
0.0500
16
Mehmet Akçay
0.0292
51
Elif Bilginoğlu
0.3717
86
Yüksel Demirci
0.0278
17
Ahmet Akgül
0.0049
52
Faruk Bilginoğlu
0.3783
87
Duygu Demirel
0.0365
18
Zeki Murat Akhan
0.0461
53
Ömer Bilginoğlu
0.5575
88
Zeki Demirtaş
0.2500
19
Ali Akın
0.3015
54
Rıfat Bilginoğlu
0.5575
89
Kamil Dere
0.0300
20
Adnan Aksoylar
0.1731
55
Nur Bilginoğlu Anaç
0.3717
90
Niyazi Dere
0.0656
Ethem Dizdar
0.0500
21
Erol Aktürk
0.0750
56
Osman Nuri Bora
0.0125
91
22
Nuri Alım
0.0825
57
Ali İhsan Bostan
0.5033
92
Mehmet Semih Doğan
0.1000
23
Fehim Arıcı
1.5500
58
Turan Boztepe
0.0000
93
Hüseyin Duğral
0.0167
24
Hüsamettin Arlı
0.0010
59
E. Altan Bursal
0.0001
94
Mustafa Duğral
0.2567
25
Mehmet Artukaslan
0.0834
60
S. Atilla Bursal
0.0000
95
Nuri Duman
0.4548
26
Mustafa Atçı
0.0029
61
Aykut Büyükekşi
0.2500
96
Yusuf Durmuş
0.0500
27
Zehra Aydın
0.2419
62
Yavuz Canikli
0.4375
97
Soner Eken
0.0500
28
Aydan Aydın Sağlık
1.6533
63
Mustafa Cemaloğlu
0.5000
98
Mehmet Eldem
0.0331
29
Erdal Babadağ
0.0128
64
Halil İbrahim Ceylan
0.2500
99
Kemal Elibal
0.4442
30
Recep Bahtiyar
0.0500
65
Kadir Ceylan
0.0667
100
Yalçın Ercan
0.1083
31
Nüsret Barış
0.0167
66
Hakkı Coşkun
0.1933
101
Nurettin Eroğlu
0.1936
32
Zübeyir Barış
0.0500
67
Mehmet Coşkun
0.1933
102
Yavuz Eroğlu
1.4500
33
Ziya Başcı
0.0333
68
Abdurrahman Çakar
0.1250
103
Mehmet Şevki Erol
0.1583
34
Ahmet Başoğlu
0.2075
69
Hadi Çakar
0.1000
104
Avni Ertansel
0.0500
35
Arif Başoğlu
0.0278
70
Mustafa Çakar
0.1250
105
Mehmet Fayik Esen
0.0500
(*) In the case of shareholders who are corporate entities, the real-person ultimate controlling individuals have been identified as persons
holding indirect shareholding interests in the bank.
(**) The shareholding interests of Group A shareholders which are less than 1/100,000 are represented as “0”.
18
Changes in Capital and Shareholder Structure During the Reporting Period
No
Name/Surname
Share in
the Bank (%)
No
Name/Surname
Share in
the Bank (%)
No
Name/Surname
Share in
the Bank (%)
106
Sabri Esen
0.0500
147
Celal Karayol
0.3333
188
Mehmet Salih Konakçı
0.5110
107
Ahmet Evci
0.1000
148
Emre Katırcı
0.0750
189
Abdulkadir Konukoğlu
5.5800
108
M. Abdulcebbar Ezgin
0.1000
149
Mehmet Katırcı
0.1625
190
Abdurrahman Kopuz
1.1000
109
Memet Fırat
0.0611
150
Mustafa Şevki Kavurmacı
0.1244
191
Musa Korkmaz
0.0500
110
Adnan Osman Güldaş
0.0000
151
A. İskender Kaya
0.0001
192
Mustafa Aydın Koyuncu
0.8000
111
Yılmaz Güldaş
0.0508
152
Adem Kaya
0.0015
193
Metin Kulaberoğlu
0.1000
112
Ali Gülen
0.2012
153
Ali İhsan Kaya
0.0014
194
Burhan Kurt
0.1258
113
İlhami Gülen
0.2012
154
Alpaslan Kaya
0.0014
195
Hasan Kurt
0.0500
114
Mehmet Gülen
0.2012
155
Aynihal Kaya
0.0026
196
Turan Kurt
0.1258
115
Sadık Gülen
0.2012
156
Bayram Kaya
0.0024
197
Yalçın Atilla Kurtuluş
0.0219
116
Yusuf Gülen
0.2012
157
Celal Kaya
0.0015
198
Avni Kuşol
0.0600
117
Faik Gün
0.0500
158
Cengiz Kaya
0.0041
199
Hasan Kuşol
0.0667
Hüseyin Kuşol
0.0750
118
Emine Gündüz
0.0547
159
Coşkun Kaya
0.0026
200
119
Rıdvan Güngör
0.0500
160
Etem Kaya
0.0015
201
Mesut Kuşol
0.0600
120
Cemil Gürleroğlu
0.0500
161
Gül Kaya
0.0016
202
Selahaddin Kuşol
0.0600
121
Fevzi Gürses
0.0003
162
Gülten Kaya
0.0033
203
Hasan Kutlutaş
0.0500
122
Hüseyin Güzel
0.0875
163
Hakan Kaya
0.0002
204
Kamil Yavuz Malkatan
0.0278
123
2.1561
164
Halit Kaya
0.0055
205
Cengiz Manav
0.0020
124
Mehmet Emin Hasırcılar
0.2308
165
Hasan Kaya
0.0039
206
Ahmet Metin
0.0143
125
Derviş İnce
0.0500
166
Hayati Kaya
0.0015
207
Ahmet Mutafoğlu
0.0000
126
Ünal Kabaca
0.0000
167
Hayri Kaya
0.0015
208
İlhami Negiş
0.3749
127
Eyyup Kadıoğlu
0.1250
168
İlgül Kaya
0.0001
209
Nermin Negiş
0.1095
128
Makbule Kadıoğlu
0.1250
169
İskender Kaya
0.0024
210
Tacettin Negiş
4.5043
129
Mehmet Murat Kadıoğlu
0.0132
170
İslam Kaya
0.0200
211
Kemal Övün
0.0276
130
Mehmet Kafarcı
0.5000
171
İsmail Hakkı Kaya
0.0076
212
Fazlı Özalp
0.0000
131
Mevlüt Kaklık
0.2000
172
Nesrin Kaya
0.0000
213
Abdullah Özata
0.0125
132
Cemal Kalafat
0.0222
173
Şenay Kaya
0.0017
214
Adnan Özata
0.0021
133
Ayhan Kalaycı
0.0250
174
Şükrü Kaya
0.0074
215
Ahmet Özata
0.0021
134
Erhan Kalaycı
0.0250
175
T. Bayram Kaya
0.0001
216
Erol Özata
0.0021
135
Muammer İhsan Kalkavan
2.2578
176
Kadir Kayalı
0.5025
217
Hürriyet Özata
0.0058
136
Kamil Kandemir
0.0087
177
Hüseyin Kayıkçıoğlu
0.0500
218
Mustafa Özata
0.0372
137
Mehmet Emin Kara
0.2000
178
Hasan Keklik
0.0500
219
Yakup Özata
0.0021
138
Müyesser Karadayı
0.6944
179
Kenan Kelekçi
0.2992
220
Ramis Özaydın
0.0500
139
Gülsüm Betül Karagöz
0.8988
180
Ayhan Keser
0.0000
221
Mustafa Özaydınlık
0.0000
140
Sami Karahan
0.0608
181
Vildane Kılıç
0.1250
222
Şükrü Murat Özcan
0.0500
141
Maksut Karakaya
0.0123
182
Hasan Kırgöz
0.0258
223
Cemil Özdemir
0.0000
142
Murat Karakaya
0.0123
183
İsmail Kırgöz
0.2000
224
İdris Özdemir
0.3871
143
Sadık Mutlu Karakaya
0.0067
184
Nail Kıygın
0.8839
225
Mustafa Kemal Özdemir
0.0050
144
Salih İhsan Karakaya
0.0067
185
Mesut Kızılhisar
0.3250
226
Recep Özdemir
0.0056
İsmail Özen
0.5000
Enver Özeren
0.0500
145
Fahri Karatay
0.0862
186
Mustafa Koç
0.2569
227
146
Hasan Karatay
0.8758
187
Mehmet Nevzat Koçak
0.0500
228
19
No
Name/Surname
Share in
the Bank (%)
No
Name/Surname
Share in
the Bank (%)
229
Rafet Özeren
0.0500
271
Ali Cem Tekoğlu
0.0107
230
Osman Gürbüz Özkara
0.0583
272
Ömer Tekoğlu
0.0781
231
Fatih Özkaragöz
0.2767
273
Tahsin Tekoğlu
0.1901
232
Kemal Özkaragöz
0.1000
274
Ergin Tonyalı
0.0500
233
Ali Özturan
0.0221
275
Kamil Topçu
0.1425
234
Ali Öztürk
0.0079
276
Murat Toplaoğlu
0.0080
235
Zekai Öztürk
0.0437
277
Ümit Topuz
0.1000
Mehmet Torun
0.0700
Information on Titles and Shares of
Shareholders holding Preferred Shares
Name/Surname
No Trade Name
Share in
the Bank (%)
1 Birim Birleşik İnşaatçılık
Mümessillik San. ve Tic. A.Ş.
4.9398 2 BJ Tekstil Ticaret ve Sanayi A.Ş.
5.0000 3 Forum İnşaat Dekorasyon
Turizm San. ve Tic. A.Ş.
6.2681 4 Galaksi İnşaat Tek. San. A.Ş
0.5000 236
Osman Can Pehlivan
4.0000
278
237
Rahmi Peker
0.5000
279
Sadık Tuğcu
0.2500
238
Meral Pişan
0.0708
280
İbrahim Tulum
0.0625
239
Onur Pişan
0.1250
281
Ahmet Tuna
0.0500
240
Sibel Pişan
0.0833
282
Haluk Tunçak
0.0889
241
Uğur Pişan
0.1250
283
Ahmet Turalioğlu
0.0367
242
Sinan Saraç
0.1000
284
Mehmet Hanifi Turalioğlu
0.0367
243
İrfan Sarı
0.0000
285
Ömer Turalioğlu
0.0367
244
Salih Sarıgül
0.1198
286
Vural Tutak
0.0468
245
Ahmet Sarıkaya
0.0131
287
Kazım Türkkaynağı
0.0083
246
Kadri Sarıkurt
0.1000
288
Ahmet Tüysüz
0.1000
247
Asım Sayın
0.4150
289
Mahmut Nedim Uğur
0.0125
248
Hasan Sayın
4.4354
290
Murat Ulus
0.0003
249
İbrahim Sayın
3.5218
291
Mustafa Nazım Ulusoy
0.1250
250
Burak Serdaroğlu
0.1268
292
Erdoğan Ustaömer
0.0500
251
Semih Serhatlıoğlu
0.0003
293
Ali Rıza Uysal
0.0500
252
Salih Seyhan
0.0023
294
Mehmed Uzun
0.2500
253
Osman Sezer
0.0500
295
Salih Uzunlar
0.0067
254
Arzu Silahtar
0.3783
296
Savaş Ünal
0.0761
No Trade Name
255
Murat Sungurlu
0.3683
297
Ahmet Ruhi Ünlü
0.0896
1 Forum İnşaat Dekorasyon Turizm
256
Hüseyin Fikret Şahinbaşoğlu 0.0003
298
Mustafa Ünlü
0.0000
257
M. Talha Şahsuvaroğlu
0.0603
299
Nesrin Vural
0.0025
2 İbrahim Arı
0.8423
258
Orhan Şeker
0.1917
300
Mustafa Vuran
0.0458
3 Asım Sayın
0.0500
259
Yaşar Şeker
0.0021
301
Ali Yarkın
0.4872
4 Hasan Sayın
0.0222
260
Harun Şimşek
0.4000
302
Ahmet Yaşar
0.0150
5 Burhan Kurt
261
Namık Kemal Şimşek
0.1250
303
Niyazi Yıldırım
0.0500
262
Sebahat Şimşek
0.0500
304
Mehmet Yılmaz Yıldız
0.3651
Şenol Yıldız
0.0500
263
Abdülvahit Tabakçı
0.0107
305
264
Cemil Tan
0.0825
306
Hasan Yılmaz
0.0500
265
Halis Tan
0.3297
307
İbrahim Yöndem
0.0333
266
Seyyithan Tan
0.3433
308
Muammer Yurtsever
0.0000
267
Ali Rıza Tanrıseven
0.9257
309
Mehmet Fevzi Yüce
0.0288
268
Mehmet Tari
0.2500
310
Others 0.0285
269
Aşır Taşkıran
0.0500
BDDK İzni Beklenenler 4.3565
270
Mehmet Sıddık Tekin
0.3312
5 Karakaya Yedek Parça ve
Otomotiv San. Tic. Ltd. Şti.
0.0449 6 Koçkaya Motorlu Araçlar
San. ve Tic. A.Ş.
0.0656 7 Linateks Tekstil İthalat İhracat
Sanayi ve Ticaret Limited Şirketi
0.2500 8 Meltem Turizm İnş. Tic. A.Ş.
0.0210 9 Negiş Giyim İmalat ve İhracat A.Ş.
0.1806 10 Ortadoğu Tekstil Tic. San. A.Ş.
10.5535 11 Serra Turizm Ltd. Şti
4.1667 12 Teksen Tekstil End. A.Ş.
0.2676 13 Verim Plastik İth. Mad. A.Ş.
0.4167 Group A pending as of December 31, 2009
for approval from BRSA
Name/Surname
Share in
the Bank (%)
San. ve Tic. A.Ş.
Total
3.4337
0.0083
4.3565
Changes Made in the Articles of
Association in 2009
In 2009, no changes were made in the Bank’s
Articles of Association.
20
A Message from Tahsin Tekoğlu
Esteemed Bank Asya shareholders:
Effective 12 February 2010 I have resigned from the position of Chairman of the Board of Directors which I
have held since 2004. I would therefore like to take this occasion to share my thoughts with you briefly.
Backed by the strong financial and operational structure, the knowledge and experience, the corporate
competencies, and–most important of all–the brand that it has built up in the brief time since it was founded,
Bank Asya is embarking upon a process of much rapider growth and development in 2010. In this process, our
bank’s dedicated employees will continue to provide solutions specially designed to meet the needs of our
millions of customers and to demonstrate the Bank Asya difference while remaining firmly committed to our
principles and performing their jobs with zeal.
Both the consistent performance that it has demonstrated during the last seven years and the huge
potential that it harbors have made our national economy a focal point of attention not just at the regional
level but on a global scale as well. Bank Asya is ready to take maximum advantage of the growth and new
business opportunities that markets will be revealing in the near future and to transform such potential into
performance.
I want to extend my gratitude to all members of the Board of Directors with whom I have worked in such
perfect harmony during my term of office. Similarly I also sincerely thank our professional senior management
teams and all my colleagues for their great efforts in making Bank Asya a “model of success”.
I wish our bank’s new board chairman my heartfelt success. I have every reason to believe that he will be
administering our bank in the very best and soundest way during his term at the helm.
Tahsin Tekoğlu
Chairman of the Board of Directors
(Until 12 February 2010)
21
A Message from the
Board of Directors
Esteemed shareholders:
We have completed a year which suffered from the effects of an
economic crisis that shook the whole world and will forever be
remembered in the history of the international economy and which
for us was marked by both difficulties and successes.
2009 will have a special place for us in the future as the year in
which Bank Asya reached an important stage in its upward progress
while proving its performance under the most critical of conditions.
We may say that the process referred to as the “global crisis” was the
outcome of flaws in the structure of the international financial system
and that this structure failed because it no longer inspired confidence. The
international consensus of opinion and action that emerged with respect
to remedies to get out of the crisis and to deal with its aftermath may be
regarded as one beneficial result to come out of that process. Nevertheless
it would not be a mistake to say that the most striking outcome of the
crisis has been a change in consumer behavior in the United States and
other developed countries–which is to say cutbacks in consumption and a
heightened propensity to save.
22
A message from the Board of Directors
The next period should not
pose problems for the sector
as banks maintain high levels
of capital adequacy and
liquidity ratios.
As of the third quarter of 2009 it appeared that the
global economy had begun to emerge from recession
and that the crisis was giving way to recovery,
however slowly that might be. An increasingly
important consideration in this process was the
need for governments and monetary authorities
to act without haste and deliberation in winding
up their support plans in order to head off the
risks that markets might lose confidence and that
macroeconomic balances might be upset once again.
For participation banks, events unfolded somewhat
differently. Participation banks’ funding costs did not
drop as fast as did those of commercial banks due to
the effects of their different business models. For this
reason the dividends paid out by participation banks
were well above those of commercial banks even as
the latter cut their interest rates last year. Although
the overall growth in lending throughout the banking
industry remained flat in 2009, participation banks
actually increased their credit volumes.
Turkey’s economy and banking sector
encountered this latest global crisis under
relatively better conditions thanks to the
experience which had been gained in the 2001
crisis and to changes which had been made in
light of that experience.
Banks in Turkey not only possessed high levels of
liquidity, strong capital structures, high levels of
debt serviceability, good-quality asset portfolios, and
high capital adequacy ratios but were also paying
attention to risk management, internal control, and
corporate governance while the banking system as a
whole was not seriously encumbered by an uncovered
foreign exchange position. Such factors made the
country’s banking sector more resilient when dealing
with the difficulties posed by the crisis.
Looking at asset quality, the anticipated growth in
non-performing loans turned out to be much less
than pessimistic projections had thought it would be.
BRSA regulation and loan restructurings by banks in
support of corporate clients undoubtedly played a
great role in this development.
Banks in Turkey had a rather good year in 2009,
particularly in terms of profitability. The Central
Bank cut interest rates drastically, which reduced the
cost of banks’ resources to quite reasonable levels.
At the same time, banks also booked substantial
profits thanks to the returns that they received on
the increasingly higher proportion of their portfolios
consisting of high-interest securities.
The next period should not pose problems for the
sector as banks maintain high levels of capital
adequacy and liquidity ratios. No one however should
harbor any hopes of achieving the same high level
of profitability as in 2009. From the second half of
2010 on, banks will respond to the expected recovery
in the real sector by lending increasingly more of the
liquidity that they have been holding onto. In their
efforts to make up for profit margins made thinner
by lower interest yields on their security portfolios,
all banks will try to play a more active role in the
credit market, with particular emphasis being given to
lending to the retail and small-business segments.
We are putting our knowledge and experience to
work for the prosperity of our country’s economy
and people.
Our bank is the strongest representative in our
country of participation banking, a financial system
business model which is being held in increasingly
higher esteem as its value becomes better
understood. Our bank continued to grow and perform
soundly in 2009 and it posted balance sheet results
that put it in the front ranks of the sector.
top 10
Bank Asya’s corporate
governance practices,
its transparency, and its
accountability have earned
it a place among the top
ten companies included in
the ISE-30 banking industry
index.
Bank Asya acts in accordance with the realities
both of Turkey and of its sector. Due to the nature
of our business model, our core business activity
is lending and for that reason we regard ourselves
as an essential element of the production process.
We see participation banking as the best recipe for
production sector growth. Deploying it to support
enterprises and to grow along with them as business
partners is the way to open the path to our own
success. Our bank continued to supply funding to the
real sector without interruption even under economic
crisis conditions as a financial institution which has
an advanced credit culture and which works with
firms of every size. Indeed the remarkable growth
in our cash loans last year is the clearest possible
expression of just this approach on our part.
Bank Asya is the newest entry into the business
of participation banking but it is also the bank
that has been growing the fastest and making the
most progress. Sound and determined steps in the
direction of institutionalization have made as much
of a contribution to our bank’s success as have the
knowledge and experience of our professional staff.
With a significant proportion of its stock publicly
traded, Bank Asya’s corporate governance practices,
its transparency, and its accountability have earned it
a place among the top ten companies included in the
ISE-30 banking industry index.
We invest in the future.
Bank Asya plans to continue pursuing organic growth
in 2010. The engine of that growth once again will be
our investment in people and technology, which is to
say our investment in the future. Our bank ranks first
among participation banks in terms of the number of
people it employs and among the top contenders in
terms of the average number of personnel per branch.
The projects that we have carried out are proof
that our intention to lead the way in innovation by
supporting our progressive human resources with
technology is no dream.
23
Nor are our investments in the future limited
exclusively to our bank. Bank Asya continued to
give importance to social responsibility projects in
2009 and it played an active role in efforts in many
different areas such as education, environment,
culture, and art by supporting projects and events
that make a contribution to social wellbeing.
The key to our success is believing: Believing that
we are going to be successful and acting out of
shared wisdom and values…
None of our successes have been by chance. They are
all the outcome of a strategy that has been thought
over, laid out, and implemented in the finest detail.
In everything that we have accomplished and will
accomplish, our biggest mainstays are first of all our
commitment to solid growth, into which we have
channeled all of our energies and on which we are
focused, and secondly our team of experts who have
the ability to duly carry out our strategies.
In conclusion I offer my deepest thanks to everyone
who has contributed towards our superior success as
well as to all our other stakeholders.
Behçet Akyar
(Since 12 February 2010)
24
A Message from Ünal Kabaca
Esteemed Bank Asya customers and colleagues:
Effective 28 January 2010 I have relinquished my position as a CEO of Bank Asya, a responsibility that I have
held for ten years, to my esteemed colleague Cemil Özdemir. I am convinced that under the guidance of its
new CEO and through the peerless efforts and contributions of its professional management team and strong
human resources, our bank will continue to advance and to be our country’s leading participation bank in 2010
and the years that follow.
At a time when structural strength and institutionalization have become more important than ever, Bank
Asya continues to produce increasingly more value as much for all of Turkey as for its stakeholders through its
superior competencies and the human resources that represent its most precious asset. Keeping productivity
and effectiveness in the forefront of everything that it does, our bank is also an exemplary and responsible
corporate citizen both in its sector and in its country.
Although my term of office is over, I wish to make it clear that I shall continue to be the most faithful
supporter of the mission and vision which we hold in common at Bank Asya and that I shall be proud to
contribute both my knowledge and my efforts on behalf of the bank whenever you may be in need of them.
Ünal Kabaca
CEO
(Until 28 January 2010)
CEO’s Message
Esteemed shareholders:
Although 2009 was a difficult year for the world’s economies, the
Turkish banking sector as a whole successfully demonstrated its
mettle during the crisis. Through the prudent policies that they
adhered to, Turkish banks strengthened both their equity and their
profitability and indeed their crisis management abilities are being
pointed to as models for banks elsewhere to follow.
As a consequence of their business model and principles,
participation banks do not maintain portfolios of fixed-income
securities. Their lending therefore increased at a rate above the
banking sector’s average last year as they continued to supply the
real sector with even more financial support.
25
26
CEO’s Message
During 2009 Bank Asya maintained both its
profitability and its growth in line with its stated
targets thanks to its strong capital base and to
its balanced balance sheet structure. Bank Asya
successfully defended its leading position among
participation banks in terms of total assets, loan
placements, non-cash loans, deposits, and net profit
while registering above sector average rates of
growth in total assets, loans, and deposits. According
to third quarter 2009 figures, Bank Asya ranked 14th
among Turkey’s biggest banks from the standpoint of
total assets.
15%
The shareholders’ equity that
makes up 15% of its total
assets is one of the best
evidences of the bank’s healty
financial structure.
Full support for the real sector
Bank Asya’s total assets reached TRY 11.6 billion in
value in 2009, a figure that corresponds to a yearon-year rise of 43%. The growth in the bank’s assets
stemmed largely from increased lending, with loans
making up fully 72% of the overall total. Continuing
to provide its customers with credit support at an
ever-increasing rate at a time when the effects of
the international financial crisis were felt, Bank Asya
demonstrated its ability to stand by them even during
hard times while successfully expanding its total
lending by 31% in a year when the total volume of
banking sector loans increased by only 6.9%.
Last year Bank Asya also expanded its cash loan
portfolio while registering a 5.3% rate of growth in
its NPLs, a figure that is consistent with the sectoral
average.
Deposits received were once again the most
important source of Bank Asya’s funding resources
in 2009. Such deposits were up 56% last year, going
from TRY 5.8 billion in 2008 to TRY 9.1 billion in 2009.
This rise is clear evidence of the confidence that
customers have in Bank Asya during such a fraught
period of time.
The most profitable participation bank for 3
years in a row
In the 12 months to end-2009 our net profit was up
22% and reached TRY 301 million. By successfully
increasing its profitability by such a figure at a time
when inflation was in the single-digit range, Bank
Asya ranked as Turkey’s most profitable participation
bank for the third year in a row. Dividend income
received from having lent out the additional resources
resulting from the 56% rise in deposits together with
commission earnings on non-cash loans were the two
main sources of the bank’s profitability. As a result
of all these developments, our bank posted a 19.4%
return on equity and a 3.1% return on assets.
The high dividends earned by the bank as a result
of its productive lending policies made it possible
for its customers to secure high returns on their
participation accounts as well. One outcome of this
was that the average length of term on deposits held
by the bank was also above the sectoral average.
As a result of a more prudent lending policy that gave
importance to liquidity, the ratio of loans to deposits
was down to 91% in 2009 from 109% in 2008. To put
it another way, Bank Asya continued to support its
customers financially despite its heightened sense of
cautiousness.
With such a large influx of deposits and in view of
the needs of the business climate, Bank Asya chose
to pursue growth in cash loans in 2009. One outcome
of this conscious decision was a 13% year-on-year
decline in non-cash loans. Another reason for this
contraction in non-cash loans was the bank’s strategy
of maintaining its capital adequacy ratio at around
the 15% or so level. Despite our decision to reduce
our non-cash loan exposure, there was a noteworthy
22% rise in income received on such placements. Last
year Bank Asya successfully maintained its fourthplace position in the banking industry in terms of
letters of guarantee issued.
A sound and strong capital structure
Regulatory authorities in Turkey approach the
matter of capital adequacy with prudence and have
therefore set a minimum 12% requirement, four
points above the 8% ratio that is generally recognized
as acceptable elsewhere in the world. Bank Asya
for its part has decided that an even higher capital
adequacy ratio, on the order of 14.45%, is an
optimum level that is more in line with its need to
make productive use of its deposits combined with its
own sense of prudence. Maintaining its strong capital
structure, Bank Asya’s profitability also contributed
to the 22% year-on-year rise in its equity, which
reached TRY 1.7 billion.
No letup in planned organic growth
In light of its strategy of controlled, deliberate growth
and also in line with customer demand, Bank Asya
opened nine new branches in 2009, five of them
outside İstanbul. This corresponds to a year-on-year
rise of 6% and brought the total number of branches
from 149 to 158. During the same period, the number
of bank personnel also increased 7% to 4,074.
Recognizing the crisis as an opportunity, Bank Asya
reviewed its own internal systems and accelerated its
efforts to improve its business processes during 2009.
In the period ahead, we
will strive in every possible
way to realize our vision
of being “a respected,
trusted, and effective bank
that provides service at
world standards through
the products that it
develops in the business of
participation banking”
Bank Asya has been initiating activities outside
Turkey with the intention of becoming a potent
financial force in the international arena as well.
2009 was a year in which we took the first steps
in our strategy of expanding abroad. Bank Asya
has signed a strategic partnership agreement with
the Islamic Corporation for the Development of
the Private Sector (ICD), an agency of the Islamic
Development Bank (IDB), with the aims of taking
advantage of growth potential in Africa, of
providing banking services to Turkish companies
active in African countries, and of advising
Turkish businessmen on business and investment
opportunities in the region. As a result of this
partnership, Bank Asya will be engaging in interestfree banking activities along with IDB and ICS
throughout the continent with a particular focus on
West Africa at the outset. In another international
venture project, the bank has received a license from
the Banking Regulation and Supervision Agency
(BRSA) to open a representative office in the city of
Mumbai in India.
A project to transform our construction company
subsidiary Asyafin İnşaat Sanayi AŞ into a real estate
investment trust was also brought to completion last
year.
Bank Asya’s innovative products and services
continued to make it the preferred bank of its
customers in 2009 as well.
Last year the bank registered a 20% increase in the
number of its retail customers. The total number of
credit cards issued under our AsyaCard brand reached
1.5 million while our credit card turnover also rose
25% year-on-year.
The success of AsyaCard DIT, which ranks among
the world’s most advanced and functionally capable
payment cards, was confirmed twice last year in the
form of the “Best Cash Displacement Initiative” award
in the “Visa Europe Best Card & Payment Sector
Awards” and the Cards & Payments Organization’s
“Best New Credit Card Product Launch” award.
Under the heading of mass transit projects carried
out jointly with municipalities, last year Karabük and
Bolu joined Kahramanmaraş and Balıkesir on the list
of provinces in which municipal bus fares can be
paid using AsyaCard DIT. Discussions are currently in
progress with many other municipalities to introduce
the same system in their own localities.
27
According to December 2009 figures published by
Interbank Card Center, Bank Asya ranks 10th in credit
card and 9th in POS numbers. This is indicative of the
general rises that the bank has been experiencing
in payment card rankings and market shares. DIT
Pratik, Turkey’s first prepaid contactless bank card,
completed 2009 as the leader of its category having
only recently joined the DIT family in November.
In addition to supporting the national economy, Bank
Asya also regularly contributes towards sport and
culture for the better health and wellbeing of young
people and it continued to do so in 2009. In that
respect, our sponsorship of the Bank Asya 1st League,
which consists of grassroots teams from provinces
outside İstanbul, is a matter of particular pride and
importance for us.
Constantly forward into the future with sound
goals…
Our bank is a rising star in a country that is expected
to become one of the world’s biggest economies in
the future and our highest priority will always be
to ensure that Bank Asya enjoys the stature that it
deserves. While strengthening our present position,
we will also continue our efforts to achieve our
goals and to take Bank Asya even further ahead
without even a hint of indecision or hesitation. In
the period ahead, we will strive in every possible way
to realize our vision of being “a respected, trusted,
and effective bank that provides service at world
standards through the products that it develops in
the business of participation banking” and I have full
faith and conviction that our inherent love of service
and superior sense of duty will enable us to be the
authors of even greater successes.
In closing, I offer my thanks and respects to all of
our customers, shareholders, and employees whose
unstinting material and moral support since the day
Bank Asya was founded have made our bank what it
is today.
Cemil Özdemir
CEO
(Since 28 January 2010)
28
Falling employment
100%
Rising stock
market
Awash with liquidity,
developed countries’ stock
exchanges posted average
returns on the order of
20% while rises of close
to 100% were experienced
in some emerging
markets.
Recoiling from tighter credit
conditions inherited from
the previous year, growth,
consumption, investment, and
consequently employment
numbers all dropped
significantly all over the
world in 2009.
29
Contracting
economies
In the first quarter of 2009,
only the Baltic countries
suffered more from the
global economic downturn
than Turkey did. The Turkish
economy shrank 8.4% in the
first nine months of the year.
(8.4)%
Asia
The engine of the global economy for the period
ahead
The generally prevailing view of the period ahead is
that the country risk map has been transformed and
that Asian economies will be the engines of global
growth, with those of China and India leading the
way forward.
30
Macroeconomic Overview and the Banking
Sector
Global overview
2009 was a year in which economic recession spread
throughout the world and there was never any lack
of either debate or speculation as to the timing and
speed of economic recovery.
2009 was a year in which
economic recession spread
throughout the world and
there was never any lack of
either debate or speculation
as to the timing and speed
of economic recovery.
Recoiling from tighter credit conditions inherited
from the previous year, growth, consumption,
investment, and consequently employment numbers
dropped significantly all over the world in 2009. The
hallmark concerns last year were concerned primarily
with when and to what degree the recovery observed
in financial markets (which were thought to have put
the worst of the global economic crisis behind them)
would make itself felt in the real economy and in
employment numbers.
The deep impact of the crisis on the banking
industry forced governments and central banks in
many countries to take serious measures. A host of
measures were taken to restore stability to financial
markets ranging from rapid interest rate cuts and
liquidity support to nationalization.
Throughout most of the year, central banks kept their
interest rates at historically low levels and pumped
liquidity into their markets with the result that
financial asset prices appeared to be on the rise again
in the second half of the year. Finding themselves
awash with liquidity, stock exchanges in countries
like Germany, the UK, and the USA generated average
returns on the order of 20% while rises of close to
100% were experienced in some emerging markets
like Argentina, Brazil, Russia, and Turkey.
In 2008 the euro lost ground against the US dollar in
reaction to the USD liquidity crunch, with the EUR/
Annual Growth Rate
USD exchange rate falling as low as 1.28. In 2009 the
situation reversed itself somewhat as USD began to
flow freely with global markets recovering and the
euro began to appreciate once again.
In response to seriously depressed international
demand, commodity prices had shrunk significantly in
2008 but began to regain their lost ground in 2009.
In 2008 crude oil prices plummeted sharply to below
USD 40 from their record-breaking USD 140/barrel
high point. Although the price began to rise again in
2009, it nevertheless closed the year at the USD 78/
barrel level.
Towards the end of 2009 the Dubai government
released an announcement saying that Dubai World,
an investment company in which it controls a
stake, intended to ask for a “standstill” in its debt
servicing while international credit rating agencies
downgraded Greek government bonds noting that
the country’s debt service abilities were fraught with
long-range risks. Such events caused more turbulence
in financial markets that was exacerbated by worries
over the euro when Fitch Ratings announced that
it could not guarantee France’s or the UK’s AAA
sovereign debt ratings if those two potent Eurozone
countries did not take measures to enforce budget
discipline.
As we entered 2010, it was still unclear as to how
and when the USA, the UK, Eurozone countries, and
Japan would put an end to their expansionist policies.
The generally prevailing view of the period ahead is
that the country risk map has been transformed and
that Asian economies will be the engines of global
growth, with those of China and India leading the
way forward.
World
Developed countries
Developing
10
8%
8
6%
6
4
5%
3%
2
5%
2%
1%
0
1%
(1)%
(2)
(4)
3%
3%
(3)%
2007
2008
2009 (T)
2010 (P)
69.7%
The production-weighted
capacity utilization rate,
which was 64.7% in
December 2008, was up
five points to 69.7% in
December 2009.
Turkish economy overview
Like other developing economies, Turkey embarked
upon a period of sustained high growth in the 2000s.
With the onset of the global economic downturn in
2008, economic growth in Turkey dropped to below
1.1%. In the first quarter of 2009, Turkey was the
world’s most contracted economy excluding Baltic
countries. As international efforts to revive the
global economy met with varying degrees of success,
measures taken by the government here in Turkey had
the effect of slowing down the contraction.
In that contraction, depressed domestic demand had
a significantly adverse impact on growth figures.
An effort was made to prevent the recession from
becoming deeper by maintaining government
expenditures at existing levels–even in the face of
shrinking tax revenues. The arrival of net export effects
in the latter part of the year somewhat mitigated
the seriousness of the contraction in GDP, which was
nevertheless down 3.5% in the third quarter of the
year. Growth in the Turkish economy is expected to
have resumed in the fourth quarter of 2009 as a result
of the low national income base effects that prevailed
in the last quarter of 2008 and the first quarter of
2009 combined with the overall global recovery.
In 2009 there were sharp year-on-year declines in
the industrial output index. The particularly dismal
appearance at the beginning of the year however
began to improve as government tax and investment
incentive policies took hold and data suggesting that a
global recovery was underway started coming in. The
index, purged of its season and calendar effect had
begun to fall around the middle of 2008 but began to
recover as of February 2009.
Along with the rise in industrial output there were
also some noteworthy increases in capacity utilization
rates. The production-weighted capacity utilization
31
rate, which was 64.7% in December 2008, was up five
points to 69.7% in December 2009.
The consumer confidence index, which is based on
the results of the monthly consumer sentiment poll
conducted jointly by the Turkish Statistical Institute
and the Central Bank, closed the year at 78.8. The
real sector confidence index, which began rising in
January, topped 100 in July but subsequently subsided
and closed the year at the 92.2 level.
As the full force of the global crisis made itself felt
in the last quarter of 2008, official unemployment
figures entered the double-digit range and peaked at
16.1% in February 2009. In response to slower rates of
contraction in industrial output and elsewhere in the
economy, there began to be modest improvements in
employment in the later months. The posted rate of
unemployment at year-end was around 13%.
Inflation rates remained low and essentially flat as a
result of very weak demand brought on by the global
economic crisis. While there was something of a rise in
the last quarter, that may be attributable to seasonal
effects. The highest one-month increase last year was
2.41% and it took place in November.
The twelve-month rise in the consumer price index at
the beginning of 2009 was 9.50%. By the end of the
same year, this figure was down nearly three whole
points to 6.53%. During the same period, the producer
price index went from 7.90% to 5.93%. Demand
picked up somewhat in response to the government’s
investment incentives and economic stimulus package
after the first quarter, which countered the effects of
declining inflation and leveled the index out at around
5% from May on. As economic recovery began to push
consumer prices upwards, inflationary trends became
less relaxed. On the domestic front, tax cuts were the
main reason for the partial recovery even as producer
prices continued to push inflation down.
GDP Growth Rates by Sector (%)
(*) as of January-September
Agriculture
Industry
Services
Construction
5
0
(5)
(10)
(15)
(20)
2008
2009*
GDP
32
Macroeconomic Overview and the Banking Sector
Inflation and FC Basket (annual change by months %)
PPI
35
CPI
FC Basket
25
15
5
(5)
(15)
6.50%
In the twelve months to
December 2009, TCMB
reduced its overnight rates
no fewer than 8.5 points
from 15% to 6.50%. As a
result of this action, TCMB
ended up as the monetary
authority which had axed
interest rates the most
during 2009.
J
F
M
A
M
J J
2008
A
S
O
N
D
J
The low-inflation environment brought on by the
downward trends observed in domestic and foreign
demand prompted the Central Bank (TCMB) to cut its
policy interest rates quite aggressively. In the twelve
months to December 2009, the bank reduced its
overnight rates no fewer than 8.5 points from 15% to
6.50%. As a result of this action, TCMB ended up as
the monetary authority which had axed interest rates
the most during 2009.
Having moved within a fairly stable–albeit broad–band
during 2008, the Turkish lira (TRY) USD exchange rate
continued to do so in 2009 as well and closed the year
at around the TRY 1.50 level, pretty much where it had
been for most of the time. In response to signals that
normalcy was returning at both the global and the
local levels, the dollar slipped to below TRY 1.50 as we
entered 2010.
In the wake of the Lehman Brothers collapse in 2008,
stock exchanges began dropping sharply nearly
everywhere. Encouraged by the potentially beneficial
results of the measures that governments were taking,
buyers began returning to the markets however.
Events at the İstanbul Stock Exchange (ISE) followed
an almost identical course from March 2009 onward,
with prices recovering nearly all of the ground that
they had lost since the onset of the crisis. The ISE
index opened the year at 26,284 points and bottomed
out at 22,583 before embarking upon a reversal that
was driven especially by demand for shares in banking
industry firms. The market’s vigor reached its highest
level towards the end of the year, with ISE generating
an average net premium of 97%. When Fitch upped
Midterm Program Basic Assumptions
GDP (% change)
Year-end CPI* (% change)
Unemployment (%)
Current accounts balance / GDP (%)
National budget deficit / GDP
National budget tax revenues / GDP
F
M
A
M
J J
2009
A
S
O
N
D
Turkey’s country rating, ISE broke its previous TRY 3.85
one-day trading volume.
In response to depressed domestic and foreign
demand brought on by the global economic crisis,
there were substantial declines in Turkey’s import and
export numbers during 2009. Most of the losses were
concentrated in the first half of the year however
and there was something of a recovery nourished
by modest monthly rises in the second. Nevertheless
the overall picture was rather grim: CIF imports were
down 30.3% year-on-year to USD 140.8 billion and
FOB exports down 22.6% to USD 102.2 billion. Even
Turkey’s “suitcase trade” suffered, dropping 22.9% to
USD 4.8 billion last year.
With foreign trade volumes depressed by weak
demand brought on by the global economic crisis,
Turkey also had less of a need to import energy, the
prices of which were in decline. One outcome of this
was a significant contraction in the country’s current
account deficit last year, which plummeted 67%
year-on-year in 2009 from USD 41.9 billion to USD
13.9 billion.
Central government budget expenditures in 2009
amounted to TRY 267.3 billion and budget revenues to
TRY 215.1 billion. While this brought the budget deficit
up to TRY 52.2 billion, it also reduced the non-interest
surplus to TRY 986 million. There was a 199.5% yearon-year rise in the budget deficit last year while the
ratio of the deficit to GDP, which was 1.8% in 2008, is
now thought to have been about 5.5% in 2009.
2009
2010
2011
2012
(6.0)
3.5
4.0
5.0
5.9
5.3
4.9
4.8
14.8
(1.8)
(6.6)
17.3
14.6
(2.8)
(4.9)
18.8
14.2
(3.3)
(4.0)
18.8
13.3
(3.9)
(3.2)
18.7
* Estimate. Inflation targets are 7.5% for 2009, 6.5% for 2010, and 5.5% for 2011.
14%
The sector’s total assets
increased 14% in the
twelve months to end-2009
and reached TRY 834 billion
in value.
Banking sector overview
The Turkish banking industry distinguished itself in
2009 as the sector that was the least affected by the
global economic crisis. It passed a very important test
last year, increasing its profitability and attracting
international attention by virtue of its not having had
any need for a government bailout.
The sector’s total assets increased 14% in the twelve
months to end-2009 and reached TRY 834 billion in
value.
During the same period, the banking industry’s
total deposits increased 13% to TRY 515 billion
although the overall rate at which deposits were
lent out slipped four points from 81% to 77% as
the economic crisis throttled the demand for credit.
Participation banks appeared to have a somewhat
greater willingness to lend than did deposit banks.
333
Overall growth in loans remained weak as banks cut
back their lending particularly in the first quarter of
the year. Total lending amounted to TRY 396.6 billion,
corresponding to a year-on-year rise of just 7% while
the ratio of loans to total assets fell to 47.4%.
Banks in general shifted their placements away
from loans in favor of securities throughout 2009
and they showed a particular appetite for T-bills
as the instrument of choice with which to build
up their portfolios. The steady rise in the share of
investment securities among total assets may be seen
as out of keeping with banks’ function as financial
intermediaries.
In line with expectations, one effect of the business
recession on the banking industry was an increase
in its non-performing assets. In 2008, 3.7% of the
sector’s loans had to be marked as “non-performing”;
in 2009, that ratio was up to 5.3%.
Total Assets (TRY thousand)
Period
2005
Participation
Banks
9,945
Change (%)
36.3
Deposit Banks
384,097
Total
394,042
Participation
Banks/Total (%)
2.5
13,752
19,445
25,770
33,627
38.3
41.4
32.5
30.5
470,635
543,272
683,823
773,299
484,387
562,717
709,593
806,926
2.8
3.5
3.6
4.2
Participation
Banks
8,369
Change (%)
39.7
Deposit Banks
243,121
Total
251,490
Participation
Banks/Total (%)
3.3
11,152
14,834
19,045
26,711
33.3
33.0
28.4
40.3
296,495
342,031
435,554
487,907
307,647
356,865
454,599
514,618
3.6
4.2
4.2
5.2
Participation
Banks
7,408
Change (%)
51.3
Deposit Banks
144,729
Total
152,137
Participation
Banks/Total (%)
4.9
10,249
15,113
18,588
24,344
38.4
47.5
23.0
32.0
203,213
263,699
340,537
358,424
213,462
278,812
359,125
382,768
4.8
5.4
5.2
6.4
2006
2007
2008
2009
Deposits (TRY thousand)
Period
2005
2006
2007
2008
2009
Loans (TRY thousand)
Period
2005
2006
2007
2008
2009
34
profitable
Focusing on sustainable profitability
Throughout the year Bank Asya kept a close watch
on both national and international developments as
it took a prudent approach to its banking activities
and focused its attention on sound growth and
sustainable profitability.
Growth in
corporate lending
53%
Share of foreign
trade finance
2.34%
Corporate Governance Rating
Bank Asya was one of the participants to
take part in the İstanbul Stock Exchange’s
corporate governance index (CGI) project.
The bank’s sensitivity towards corporate
governance and transparency issues raised
its CGI rating to 7.82.
“Best in Class”
In less than three months
of its launch, AsyaCard
website received the “Best
in Class” award from the
Interactive Media Council.
Increase in the
number of retail
customers
2.4 million retail
customers in total
Strategic partnerships
In line with its strategy of
expanding abroad, in 2009
Bank Asya signed a strategic
partnership agreement with
the Islamic Corporation
for the Development of
the Private Sector (ICD),
an agency of the Islamic
Development Bank (IDB). As
a result of this partnership,
Bank Asya will be engaging
in interest-free banking
activities with a particular
focus on West Africa.
20%
35
36
Assessment of Bank Asya’s Activities in 2009
56.4%
Bank Asya increased
its deposits to TRY 9.1
billion, up 56.4% that
is significantly above
the sectoral average.
The average maturity of
deposits is above 100 days
which is also above the
market average.
2009 highlights…
While strengthening its position in the national
market in 2009, Bank Asya started to gain recognition
in the international arena, and had important
successes are contributing towards the bank’s longterm sustainability.
Throughout the year Bank Asya kept a close watch
on both national and international developments
and took a prudent approach to banking activities
and focused on sound growth and sustainable
profitability. Deploying the most effective practices of
participation banking in line with its strategic goals,
the bank demonstrated a successful performance in
terms of both growth and profitability in 2009 by
increasing market share and customer penetration
despite economic recession.
Bank Asya demonstrated above sector average
growth rate both in total assets and in cash loans.
Cash loans increased 30.93% to TRY 8.3 billion while
total assets reached TRY 11.6 billion, which is equal
to43.16% rise during the same period. Similarly the
ratio of the bank’s cash loans to total assets reached
71.97%.
Despite the rather large overall expansion in cash loan
portfolio, the ratio of non-performing loans increased
only marginally from 4.94% to 5.26%, appreciably
below the sectoral average of 6% last year.
The growth in Bank Asya’s lending in 2009 was
accompanied by healthy growth in deposits. Deposits
are an indication of the confidence that customers
have in a bank and last year Bank Asya increased its
own to TRY 9.1 billion, which corresponds to a 56.4%
rate of growth that is significantly above the sectoral
average. The average maturity of deposits is above
100 days which is also above the market average.
In line with its policy of giving greater importance
to liquidity in lending decisions, Bank Asya reduced
the ratio of loans to deposits from 109.2% in 2008 to
91.5% in 2009.
In 2009 Bank Asya increased the number of its
branches from 149 to 158 with the addition of five
new branches located outside İstanbul. During the
same period, the number of bank personnel also rose
7% to 4,074.
The rapid rise that Bank Asya embarked upon in 2006
continued in 2009 as well with the bank successfully
demonstrating growth rates above sector averages.
In terms of total assets, Bank Asya ranked 14th
among Turkey’s biggest banks in the third quarter of
2009. At the same time Bank Asya also ranked 13th in
terms of total deposits and total cash loans.
In the July 2009 issue, The Banker magazine cited
Bank Asya for its impressive performance while also
moving the bank 235 positions forward to 520th
place in its highly respected list of the world’s 1,000
biggest banks.
One of the best practitioners of corporate
governance
With 51% of its shares publicly traded, Bank Asya is
committed to fully comply with corporate governance
principles in order to maximize the fulfillment of its
responsibilities not just to its private and institutional
shareholders but also to all of its stakeholders
whether national or international. As one of the
very first concerns to take part in the İstanbul Stock
Exchange’s newly-introduced corporate governance
index (CGI) project, Bank Asya sensitively fulfills all of
the requirements of keeping private and institutional
investors who hold shares in the bank informed
within the framework of both corporate governance
principles and the rule of transparency. One outcome
of that sensitivity is that Bank Asya’s CGI rating was
revised from 7.56 to 7.82 points out of a possible 10.
According to a report prepared by Sabancı
University Corporate Governance Forum based on
methodologies developed by Standard & Poor’s,
Bank Asya is “the most transparent bank” in the
“partnership structure and corporate structure”
category among banks whose shares are traded on
the İstanbul Stock Exchange. This is yet another
indication of how indispensable a principle
transparency is for Bank Asya.
DIT Pratik: Contactless, prepaid, multifunctional
In order to increase the quality of service while
enhancing customer satisfaction, Bank Asya gives
importance to adopting and deploying the most
advanced technology to develop new products
and services. In keeping with its vision of being the
leading bank in contactless payment systems, Bank
Asya expanded the utility of the limited-feature “DIT
Pratik” prepaid contactless bank card that had been
introduced for use in metropolitan transportation
projects in a number of provinces in 2008 and
transformed it into a brand-new and multifunctional
“DIT Pratik”, which is now being offered to customers
all over the country.
Bank Asya’s unbounded innovative strength is
crowned with awards.
As an outcome of the bank’s ongoing investments
in innovative products and services, AsyaCard DIT
already controls a 30% share of the contactless
credit card market. In addition to being a contactless
credit card, it provides an integrated solution for
transportation fare and highway toll payments as
well. For such reasons, AsyaCard DIT was awarded by
two international awards in 2009.
AsyaCard DIT that was
awarded by two international
awards already controls a
30% share of the contactless
credit card market.
Last year AsyaCard DIT received both the “Best Cash
Displacement Initiative” award in the “Visa Europe
Best Card & Payment Sector Awards” and the Cards
& Payments Organization’s “Best New Credit Card
Product Launch” award. Both awards are granted to
recognize and support innovative products that are
designed to meet users’ different needs and serve
them in different areas.
In 2009 AsyaCard DIT also received an award in the
“Best New Credit Card Product Launch” category
in the “Cards & Payments Awards” program which
the international publications Cards International
and Electronic Payments International have been
conducting for 22 years and in which banks and
banking products are rated in 10 different categories.
www.asyacard.com.tr: “Best in Class”
As a result of its ongoing efforts to perfect its
alternative distribution channels, Bank Asya has
begun reaching out to its customers through a
brand-new website located at www.asyacard.com.
tr that has been specially designed to allow users to
keep up to date on the latest AsyaCard innovations
and to manage their credit card accounts. In less
than three months of its launch, the AsyaCard
website received the “Best in Class” award from
the Interactive Media Council. The council, whose
100 members number among leading names in the
internet webscape and come from fourteen different
countries, picked the AsyaCard website for the “Best
in Class” award in the “Banking” category.
A more user-friendly online banking
In order to serve its customers better way via its
alternative distribution channels, Bank Asya online
banking underwent a renovation. and new features
were added, some of which have never been available
before over the internet banking services. Acting in
line with its vision of being a respected, trustworthy,
and effective bank which provides world-class service
through the products that it develops and in keeping
with its status as a bank in which 70% of its publicly
traded shares are held by international investors,
Bank Asya opened its English language internet
banking for service in 2009.
37
Strategic partnership with Islamic Development
Bank
In line with its strategy of expanding abroad, in
2009 Bank Asya entered into a strategic partnership
agreement with Islamic Corporation for the
Development of the Private Sector (ICD), an agency
of the Islamic Development Bank (IDB). Under this
partnership, Bank Asya will be engaging in interestfree banking activities along with IDB and ICD
throughout the continent with a particular focus on
West Africa.
Thanks to subject partnership agreement, taking
advantage of growth potential in Africa, providing
banking services to Turkish companies active in
African countries, and advising Turkish businessmen
on business and investment opportunities in the
region is aimed.
Bank Asya has received a license from the Banking
Regulation and Supervision Agency (BRSA) to open a
representative office in the city of Mumbai in India.
Corporate, Commercial, and Enterprise Banking
Standing by the customer everywhere and
always…
In the constantly changing and intensely competitive
environment of financial markets, Bank Asya
provides more effective and productive financing
opportunities and it supports entrepreneurs by
offering multidimensional project-based solutions
that satisfy all of its customers’ banking needs.
Bank Asya serves its corporate, commercial, and
small business banking customers with an extensive
lineup of products that range from loans to cash
management services and from foreign trade finance
transaction to project finance and other banking
transactions.
Bank Asya considers its relationship with its
customers as long term business partneship. Banks
Asya aims to reach out to all economic actors, with
particular attention being given to the real sector,
through its expert marketing, sales, portfolio, and
operations teams, through its comprehensive array
of products, through its extensive branch and
distribution network, through its technological
clout, and through its effective business processes.
Bank Asya’s goal is to be a bank whose trust-based,
sustainable relationships make it a preferred service
provider under all market conditions.
38
Assessment of Bank Asya activities in 2009
14.5%
Bank Asya’s customer-focused marketing policy
principles
Bank Asya:
The bank’s small business
banking cash loan portfolio
increased approximately
14.5% in value to TRY 275
million last year.
• Ensures that its customers are visited regularly
and continuous communication is maintained
with them in order to keep abreast of their current
concerns and to respond correctly to their needs.
• Takes action in a timely and effective manner
when dealing with customers’ requests.
• Responds clearly to customer requests in order
to achieve customer satisfaction and maintains
confidence so as to ensure the continuity of
business relationships.
A healthy and growing loan portfolio
In order to spread its risk exposure while also
increasing the efficiency of its lending activities in
line with its credit allocation policy, Bank Asya utilizes
customer and sector segmentation when assessing
loan applications. This segmentation is based on
a sensitive appreciation of the factors of security,
liquidity, and efficiency.
During 2009 Bank Asya once again used its real sector
financing experience to continue supporting both its
major corporate customers and a wide range of small
and medium business enterprises from many different
sector.
The bank’s small business banking cash loan portfolio
increased approximately 14.5% in value to TRY
275 million last year while its total non-cash risk
exposure rose 8.1% to TRY 344 million. Total risk
under management in the small business banking
segment was up approximately 11% year-on to TRY
619 million.
• Adds new products and services to to meet
customers’ wishes and expectations.
• Is open for customer suggestions and makes
reconstructing business processes in case of need
• Steadily enhances its sectoral presence and
effectiveness by adding new customers to
its portfolio while also further developing its
relationships with existing ones.
Bank Asya supplied more real sector financing than
any other bank in Turkey in 2009. Cash loans grew
31%, above the sector average, and reached TRY
8,355 million in total. 69.4% of the bank’s cash loans
were in Turkish liras and with the remaining 30.6%
denominated in foreign currency.
• Supplies products and services that are efficient,
profitable , and with competitive prices..
• Organizes itself and produces results in line with
its corporate objectives.
The bank’s total corporate finance risk exposure rose
36% above the previous year’s level and reached TRY
7,069. This growth was in line with the bank’s targets.
Cash Loans
Breakdown of Cash Loans*
Non-cash Loans
(TRY million)
(%)
(TRY million)
8,355
FC
TRY
Corporate Finance
Support* (TRY million)
10,215
7,069
6,381
5,184
31%
36%
30.6
(13)%
8,886
(*) including FCindexed loans
(*) including leasing
receivables
69.4
08
09
08
09
08
09
A stronger marketing team
A pioneering institution in the interest-free banking
system, Bank Asya correctly analyzes its customers’
changing needs and reflects its findings in its
marketing efforts.
Marketing structure consisting of corporate and
commercial marketing teams makes it possible to
develop closer relationships with customers.
Bank Asya employs 333 commercial marketing
personnel who are based in its 152 commercial
branches and 37 corporate marketing personnel
who are based in its six corporate branches (three in
İstanbul and one each in İzmir, Bursa, and Ankara).
Branches’ marketing teams are also supported by 37
commercial marketing and 11 corporate marketing
personnel who are based in headquarters units.
During 2009 a customer relationship management
(CRM) strategy development project was completed
in collaboration with an international consultancy.
Under this project, a roadmap has been laid out. In
line with this, work has also begun on developing a
segment-based business model as well.
A segment with high growth potential
In 2009 the number of Bank Asya’s active small
business banking customers increased 44% from
22,219 to 31,924. Such segment make up a target
group that the bank plans to focus increasingly
greater attention on in the period ahead because of
the long-term growth potential that they have to
offer.
44%
In 2009 the number
of Bank Asya’s active
small business banking
customers, a segment that
offers a long-term growth
potential, increased 44% to
31,924.
Paralleling its growth targets in small business
banking, Bank Asya has introduced its “Business
Support Package Loan” for customers in this business
line. This package contains a selection of cash and
non-cash loan product options such as corporate
finance support and leasing that are designed to
address the needs of customers in different sectors
and different parts of the country.
Collaboration with Credit Guarantee Fund
In 2009 Bank Asya continued to take part in
government-supported projects. Under this heading
and within the framework of its ongoing partnership
and collaboration with Credit Guarantee Fund Inc
(KGF), the bank extended a total of TRY 981,500 in
KGF-underwritten loan to six firms that were having
difficulties posting guarantees of their own. Last year
Bank Asya also took part in an SME Development
and Support Administration (KOSGEB) project and
extended loan to SMEs for the first time.
39
Expanding the customer base through cash
management products
Added-value cash management products play an
important role to attract new customers while
deepening relationships with existing ones. During
2009 Bank Asya once again made important progress
in the direction of becoming its customers’ main
bank by meeting their cash management and credit
needs through innovative products and services.
Under the heading of cash management products
and services, many different options are on offer
ranging from checkbooks, POS devices, salary
disbursement, and tax and social security payments
to utility bill payments, automatic payment and
collection systems, company credit cards, and foreign
trade transactions.
Technology-based cash management products
such as direct debiting and card-based collection
systems seek to give customers a cost advantage by
helping them to lower their operational costs while
enhancing their ability to make collections. The direct
debiting system (DDS) makes it possible for firms to
automatically receive payments for the goods and
services that they sell to their dealers and regular
customers by serving as a channel through which the
collections can be made with maximum efficiency.
An alternative to DDS is a cash management product
known as “virtual commercial card”, which allows
payments and collections between a wholesaler/
franchiser and retailer/dealer on a closed-circuit
basis. Bank Asya has so far issued virtual commercial
cards to 55 of its customer firms.
Bank Asya cash management product involves the
launching of the bank’s sequential note collection
system, which has considerably reduced customers’
operational workloads and costs.
Asya Asist Kart is specialized credit card designed to
provide support in unexpected/emergency situations
when users need to avail themselves of medical,
legal, or accountancy services. Introduced in late
2008, this product proved immediately popular and
the number of active users more than doubled from
5,000 to 10,500 in 2009 alone.
AsyaCard Business is a Bank Asya credit card specially
designed for companies. The number of cards issued
increased 9% in 2009 from 4,444 to 4,826.
40
25%
The total number of
credit cards issued by the
bank reached 1.5 million.
Paralleling the rise in the
number of card users, credit
card turnover was also up
25% year-on-year to TRY 4
billion.
Bank Asya’s Merchant Partner Support Team, an
important arm of the bank’s small business banking
operations, was heavily involved in direct sale and
commercial signage activities last year. The team
increased the total number of its merchant partner
visits 97% to 90,000 in 2009.
The outlook for 2010
In 2010 Bank Asya intends to:
• Expand its customer portfolio and improve the
quality of its assets.
• Support existing customers’ projects while taking
on new customers.
• Maintain the existing rate of growth in cash loans
while reversing the contraction in non-cash loan
techniques in 2009.
• Keep the ratio of NPL/cash loans within the sector
average.
• Make use of untapped potential in small business
banking.
Retail Banking
An active year in retail banking
2009 was an active year in the retail banking business
line at Bank Asya during which new initiatives were
undertaken and new products that are innovative
both in Turkey and abroad were introduced through
the use effective use of technology in line with
customers needs and expectations.
Newly opened Bank Asya branches brought the total
number to 158 in 2009 while the number of retail
marketing personnel topped 560 and the number of
retail customers increased 20% to 2,373,000.
The total number of credit cards issued by the bank
reached 1.5 million. Paralleling the rise in the number
of card users, credit card turnover was also up 25%
year-on-year to TRY 4 billion.
AsyaCard DIT: Europe’s most advanced credit card
Launched in the second half of 2008, AsyaCard
DIT brings together in just a single card all of the
functions for which users normally need many
different cards. AsyaCard DIT’s all-inclusive features
make it the first card of its kind in the European
market and rank it among the most advanced, multipurpose cards available anywhere in the world today.
AsyaCard DIT’s success has already been recognized
twice with the “Best Cash Displacement Initiative”
award in the “Visa Europe Best Card & Payment
Sector Awards” program and the Cards & Payments
Organization’s “Best New Credit Card Product Launch”
award, both in 2009.
AsyaCard DIT’s prepaid toll card features make it a
great convenience for bank customers who regularly
use toll bridges and highways. Since the card can be
obtained in just fifteen minutes at any Bank Asya
branch , it become widespread and number of users in
a very short time. The number of AsyaCard DIT cards
in use at end-2009 was 490,000 while the cards were
used to pay tolls more than 3 million times last year.
Thanks to its contactless transaction technology,
AsyaCard DIT is particularly suited to smallsum payments that must be made frequently
and rapidly, as is the case with tolls and fares.
Originally introduced to pay municipal bus fares
Volume of Retail Loans
Breakdown of Retail Loans
(TRY million)
(%)
225
(Million)
Housing
Vehicles
Consumer
270
Number of Retail
Customers
2,4
2.0
20%
10,0
20%
37,0
53.0
08
09
08
09
The number of AsyaCard DIT’s
prepaid toll cards that offers
a great convenience for bank
customers was 490,000 at
end-2009.
in Kahramanmaraş and municipal and public bus
fares in Balıkesir, in 2009 use of AsyaCard DIT was
expanded to include fares on 31 public buses in
Karabük and another 31 in Bolu. Discussions are
currently in progress with many other municipalities
to introduce the same system in their localities.
Advanced credit card assurance
In 2009 Bank Asya introduced its Card Protection
Plan, a product that makes it possible for a bank
or credit card that has been lost or stolen to be
cancelled immediately with just single toll-free
phone call from anywhere in the world.
DIT Pratik: Turkey’s first prepaid contactless bank
card
In the wake of the success of AsyaCard DIT, Turkey’s
first prepaid contactless bank card–DIT Pratik–was
added to the Bank Asya DIT family in November
2009. By the end of the same year the number
of cards in use reached 13,691, giving Bank Asya
undisputed leadership in this business line. 200,000
DIT Pratik transactions generated a total turnover
amounting to TRY 550,000.
Similarly in order to further diversify the bank’s
insurance product line and create a new insurance
product capable of addressing market needs, Bank
Asya joined forces with ACP and the insurer Işık
Sigorta to introduce an unemployment insurance
policy for credit card users in the last quarter of
2009.
DIT Pratik is a contactless prepaid card containing
an embedded chip that can be programmed with
features etc according to user requirements. This
makes it useful for many different applications such
as paying reduced-rate fares on public transport,
monthly subscriptions, and even university student
ID cards.
Because they are programmable, DIT Pratik cards are
extremely versatile and can be designed for both
specific and general uses. So far five different cards
have been developed for the DIT Pratik family:
• DIT Pratik Anonymous
• DIT Pratik User ID
• DIT Pratik Gift
• DIT Pratik Allowance
• DIT Pratik Campus
Number of Credit Cards
Credit Card Volume (Million)
(TRY million)
1,5
1.3
3.2
17%
08
09
08
As a result of the brand-related regional and national
campaign support provided through branded vendor
agreements, there was a net 22% rise in the number
of the bank’s merchant partners, which reached
62,220. There was also a 21% year-on-year increase
in total merchant business turnover, which reached
TRY 4.7 billion.
Merchant Business
Turnover
(Thousand)
(TRY million)
4.7
62.2
51.0
25%
09
Rapid rise in merchant partner and POS numbers
In 2009 Bank Asya took part in joint-POS use
activities with Türkiye Finans, HSBC, and Akbank as
well as with İşbank, Finansbank, and GarantiBank.
Such involvement not only greatly improves
the operational productivity of POS units but
also provides the bank with real-time marketing
opportunities involving many different brands and
vendors. As of end-2009, such alliances gave the
bank access to about 10,000 POS terminals.
Number of Merchant
Businesses
4,0
08
41
3.9
22%
09
08
21%
09
42
Agreements were entered into with more than 50
new brands and chain store vendors while more than
200 campaigns targeted at credit card customers
were conducted at either the local or national level.
One outcome of these activities was that there
was a strong 37% year-on-year rise particularly
in installment-based expenditure turnover, which
reached TRY 411 million.
As a result of all these activities, Bank Asya ranked
10th in credit card and 9th in POS numbers according
to December 2009 figures published by the Interbank
Card Center.
Bank Asya online banking
underwent a renovation. and
new features were added,
some of which have never
been available before over
the internet banking services.
Strong growth in retail lending to finance real
estate
Last year Bank Asya registered a 20% rise in its
total retail lending, which went from TRY 225
million in 2008 to TRY 270 million in 2009. As a
result of agreements that the bank has entered
into with construction firms to support the sales of
the dwelling units they build, home-finance loans
accounted for a 53% share of the bank’s overall
retail lending last year. Vehicle purchase loans ranked
second at 37% while consumer finance loans came in
third at 10%.
Bank Asya’s overall exposure to retail loan risk
increased 20% and reached TRY 476,917,000 in 2009.
Cash management products make life easier
Taking advantage of its solid infrastructure and
extensive knowledge and experience in collection and
payment solutions, Bank Asya was providing salary
payment services for some 172,000 employees of
about 2,300 firms as of end-2009.
Number of Online
Branch Customers
Number of ATMs
(Units)
(Thousand)
360
450
367
271
23%
33%
Under the heading of tuition fee and related
payments, the bank handled a total of TRY 593
million worth of payments for 76,000 students
attending 561 schools.
In 2009 Bank Asya handled utility and similar bill
payments amounting to TRY 599 million, which
corresponds to a year-on-year rise of 36%. An
increase in the number of firms for which bill
payments are accepted contributed significantly to
this growth in turnover as did allowing automatic bill
payment instructions to be given using the AsyaCard
credit card and the introduction of features making
it possible for bills to be paid by credit card or on
account from the online branch.
During 2009 the bank handled TRY 1,112 million in
social security premium and TRY 1,186 million in tax
collections for its retail and corporate customers.
Bank Asya began selling the standard prepaid cards
that can be used to pay tolls on bridges and highways.
During 2009 the bank sold 160,000 such cards.
A more effective service platform
In January 2009 Bank Asya entered into an agency
agreement with the Bizim Menkul Değerler brokerage
house in order to expand its own product lineup. By
December of the year, the bank was providing stock
trading brokerage services to 5,000 customers.
In 2009 a customer relationship management project
was launched in order to respond more effectively
to the needs of an increasingly expanding customer
portfolio.
Seeking to serve customers quickly and in as many
different ways as possible by deploying the latest
advances in technology, Bank Asya has begun using
its alternative distribution channels (ADC) more
intensively and effectively in its retail loan business
line. Under this heading, the bank’s ADC Marketing
Department Telemarketing Team made more than
a million customer calls and made 190,000 primary
card, 15,300 supplementary card, 3,120 Education
Insurance Policy, and 18,,422 Card Protection Plan
sales.
During 2009 the bank received 320,000 SMS and
online credit card applications.
08
09
08
09
The Bank Asya Online Branch underwent a renovation
with a more user-friendly design and a number of
new features. One result of this is that the total
number of users increased 23% from 367,000 in 2008
to 450,000 in 2009.
360
At end-2009, Bank Asya
had 360 ATM units in its
network, up 33% versus the
previous year.
There was a 33% year-on-year rise in the number of
ATM units in the bank’s network. At end-2009 there
were 360 machines of which 162 were in off-site
locations.
“Virtual-operator mobile phone top-up” service
In its capacity as a banking sector technology
pioneer, Bank Asya added another “first” to its list of
services with “virtual-operator mobile phone top-up”
service”. The first service of its kind in Turkey, this
allows customers to add minutes to their mobile
phone accounts faster and more conveniently
without having to wait, connect to an operator, or
even press any keys.
Fully integrated into Bank Asya’s existing interactive
voice recognition and response system, the service
makes use of “virtual operator” technology to allow
the bank’s customers to buy mobile phone units
whenever they wish just by speaking.
The outlook for 2010
• Pursue an aggressively competitive pricing policy
• Conduct campaigns that will increase market share
• Expand the product line with innovative products
• Increase both the effectiveness and use of ADC.
43
International Banking
Solid foundations for international banking
While making a significant contribution to the
national economy through its support for production,
Bank Asya has also been increasing both its
effectiveness and its market share in foreign trade
finance as a result of its respected position and
strong correspondent relationships in international
markets.
In the conduct of all of its foreign trade transactions,
Bank Asya delivers service which fully complies with
international banking standards and practices and
which makes use of modern banking opportunities
in order to supply its customers with solutions that
demand superior knowledge and experience.
At the beginning of 2009 the bank began centralizing
all of its international transactions. All foreign
exchange operations were transferred back to
headquarters with the exception of those retained by
six corporate branches. Since the completion of this
process there have been significant improvements
in the speed, reliability, and standard-compliance of
foreign exchange transactions.
International awards for excellence
The effectiveness of Bank Asya’s technological
infrastructure and service competencies is confirmed
by the “excellence in straight-through-processing”
(STP) citations that it has received from some
of the world’s leading banks. Bank Asya holds
Commerzbank’s STP AWARD 2008. It has also
received The Bank of New York Mellon award for
excellence in USD payments four times.
Import Transactions
Export Transactions
Share in Turkey’s Imports
Share in Turkey’s Exports
(USD million)
(USD million)
(%)
(%)
2,721
4,870
2,430
2.46
2.36
(11)%
3,452
2.34
2.05
4%
14%
(29)%
08
09
08
09
08
09
08
09
44
1,300
Bank Asya continued to
provide international
financing services to its
customers through an
extensive network of more
than 1,300 correspondents,
of which two are in
Turkey and the rest in 110
countries.
A greater share of foreign trade
Despite significant contractions in Turkey’s imports
and exports in 2009 due to the global economic
downturn, Bank Asya continued to increase its share
of Turkey’s foreign trade.
Last year the bank handled USD 17,135 million worth
of foreign trade transactions of which USD 3,452
million consisted of imports, USD 2,430 million of
exports, USD 10,858 million of other transfers, and
USD 395 million of guarantees.
In 2009 the bank negotiated USD 1,572 million worth
of import letters of credit and USD 395 million worth
of international letters of guarantee.
Having negotiated 2.36% of Turkey’s total imports in
2008, Bank Asya increased that share to 2.46% in 2009.
In the case of export transactions, the bank’s share rose
from 2.05% to 2.34% during the same interval.
Financial institutions
An enduring and trusted presence in
international markets
In a year during which international finance
opportunities were significantly fewer and borrowing
costs were substantially higher than hitherto
because of the ongoing global economic crisis, Bank
Asya nevertheless maintained good relations with
international financial institutions.
In 2009 Bank Asya continued to provide
international financing services to its customers
through an extensive network of more than 1,300
correspondents, of which two are in Turkey and the
rest in 110 countries. In this way the bank successfully
increased both its profitability and its foreign trade
finance market share despite the business downturn.
Bank Asya also continued to supply its customers
with medium- and long-term credit opportunities
and resources made available under a variety of
export credit agency insurance programs as well
as US Department of Agriculture GSM102 credit,
which can be used to finance imports of agricultural
products from the United States. Bank Asya intends
to continue taking advantage of its extensive
knowledge and experience with foreign trade finance
and its strong international relations in order to be
even more active in this business line in 2010.
In 2009 Bank Asya also gave attention to securing
ECA financing from abroad. Once again taking
advantage of its strong correspondent relations, the
bank supported its customers by securing long-term
credit under favorable conditions from many banks
around the world under bilateral agreements.
Treasury
Effective liquidity and FX position management
As the effects of the global economic crisis were
deeply felt for most of 2009, effectively managing
both liquidity and FX positions was an issue of the
utmost importance. For this reason, Bank Asya
kept a close and continuous watch on domestic
and international market developments and risk
parameters, remained attentive to the uncertainties
and market volatilities engendered by the financial
crisis, and gave maximum attention to coordinating
risk management among its treasury and other units.
In addition to effectively deploying Bank Asya’s
increasing liquidity through short- and longterm instruments, the Treasury Department also
successfully managed the bank’s FX position as well,
thereby making a significant participation to overall
profitability.
Income-indexed instruments that had been issued
in accordance with the principles of participation
banking were added to the bank’s investment
securities portfolio in 2009. These instruments were
used as important tools in the management of the
bank’s liquidity position.
Treasury transaction volume growth
Investments in technology and new products at the
Bank Asya Treasury Department made it possible to
further increase the quality of service supplied to
customers and branches. A close watch was kept
on developments taking place in domestic and
international markets and customers were kept
informed about them both by telephone and in
writing. New banks were added to the list of the ones
that Bank Asya does business with and relations with
existing banks were further developed in an ongoing
effort to price deals more competitively. Thanks to
such competitive pricing, there were substantial
increases both in the volume of treasury trading and
in the customer portfolio. The Bank Asya Treasury
Department handled about USD 14.5 billion worth of
FX trading during 2009.
An important player at the Gold Exchange
Having become a member of the İstanbul Gold
Exchange in 2007, Bank Asya registered significant
growth in its own precious metal trading there in
2009. Widely regarded as an attractive and alternative
investment vehicle, there was a significant demand
for gold products from the bank’s customers last year.
The substantial rises in both transaction numbers and
transaction volumes in this business line made Bank
Asya a major player at the İstanbul Gold Exchange in
2009.
45
56% rise in deposits
As a result of the joint efforts of different units of
the bank in line with their requests, Bank Asya began
allowing customers to open participation accounts
in currencies other than USD and EUR in 2009.
This enabled the bank to access to new sources of
funding.
Bank Asya’s deposits
increased 56.4% in 2009, well
above the sectoral average.
Bank Asya’s respected market position and trustbased relationships with its customers found their
greatest expression in the volume of the bank’s
deposits. Bank Asya’s deposits increased 56.4% in
2009, well above the sectoral average. Total deposits
reached TRY 9,137 million of which 65.4% were in
Turkish liras and 34.6% were in foreign currencies.
TRY 7,544 million of the bank’s deposits are held
in participation accounts and TRY 1,593 million in
demand accounts.
Quality Management System
Ever since commencing operation in 1996, Bank Asya
has always advanced along the path of being a bank
that comes up with different solutions in order to
reflect the concept of “quality” in all of its banking
products and services.
Conducting all of its activities under ISO 9001:2001
Quality Management System certification awarded
by TÜV NORD, Bank Asya develops and delivers its
products and services with a thoroughly customerfocused approach.
As a result of the close attention given to quality
ever since Bank Asya was founded, a quality
management system has grown up at the bank that
is uniquely its own. Incorporating universal notions
as its most fundamental elements, the Asya Quality
Management System adapts them to the bank’s
corporate culture and enriches them with local
and corporate values with which all employees can
identify.
The basic elements of the Asya Quality Management
System consist of the following:
• Asya 8 Management Principle
• Asya Quality Management Pyramid
• Asya Process Based Quality Management
In line with these basic elements at Bank Asya:
• A quality policy, mission, vision, and goals have
been identified with broad involvement, explicitly
defined and documented, and announced to all
employees.
• All documentation (quality manual, procedures,
regulations, and service specifications) required
by the system has been prepared and records
pertaining to such documents are maintained.
• Senior management has expressed its
commitment on such issues and declared its
responsibilities.
• Processes have been defined and documented.
Process flow charts and the steps involved in
making those processes operational have been set
forth.
• Unit and branch organizational elements along
with job definitions and requirements have been
specified for all process functions.
• As a result of the close attention given to quality
ever since Bank Asya was founded, a quality
management system has grown up at the bank
that is uniquely its own.
Deposits
Breakdown of Deposits
Breakdown of Deposits
(TRY million)
(%)
(%)
9,137
56%
5,843
08
09
FC
TL
Participation Accounts
Current Accounts
34.6
17.0
65.4
83.0
46
Ever since commencing
operation in 1996, Bank
Asya has always advanced
along the path of being
a bank that comes up
with different solutions
in order to reflect the
concept of “quality” in all
of its banking products and
services.
• Human resources have been recruited to fulfill
product and service requirements and they have
been trained to system compliant.
• Materials and equipment resources have
been procured and suitable workplaces have
been provided to fulfill product and service
requirements.
• Control points have been created where necessary
to ensure ongoing measurement, analysis, and
improvement.
The Asya Quality Management System encompasses
all of the bank’s units, branches, and staff and all of
its products and services.
Bank Asya demonstrates its commitment and its
ability to continuously develop, apply, and increase
the effectiveness of its quality management system
at all times. Employees are accordingly regularly
provided with information, training, and guidance
so that they may fulfill customers’ needs and
expectations as required by law and in the manner
specified by the quality management system.
Because a customer-focused management approach
is regarded as vital to the sustainable existence of
companies in today’s competitive environment, such
an approach is strictly adhered to. Customers’ needs
and expectations are continuously monitored in
order to determine exactly what they are and how
they may be fulfilled. Feedback from such monitoring
is used as input to maintain ongoing product and
service quality at every stage from design to delivery.
Under a new organizational structure, an
Organization and Quality Department has been
set up and given the duty of making sure that all
the elements–policies, human resources, system
infrastructure, and workplaces–needed to ensure
that all aspects of the company and of its products
and services are in compliance with the Quality
Management System. This department is responsible
for developing and monitoring the system, for
continuously improving it where needed by
increasing its productivity and effectiveness, and
for coordinating all matters related to these efforts.
Describing and managing all of the banks’ products
and services as processes are fundamental to the
department’s activities.
Information Technologies
Bank Asya’s information technology working model
is based upon standard methods and approaches
that are regarded as generally accepted practices
throughout the world. The standards with which
the bank complies consist of COBIT (corporate
governance), ITIL (operations), ISO 27001 (information
security management), CMMI (software engineering),
and PMI (project management).
In 2009 the bank’s Help Desk was reorganized and
began using a standard call center infrastructure.
Use of the HP Service Manager system was deployed
throughout the bank in the center’s event, problem,
configuration, and change management processes.
Project management processes were reviewed under
the supervision of the Project Management Office,
which was set up in 2008. All projects and projectrelated requests are now being managed by means of
the HP Project and Portfolio Manager system.
The HP Quality Center system has been introduced
to manage information system testing processes and
to improve product quality. It was also decided to
make use of automated testing procedures in order
to reduce testing costs and the frequency of errors.
Testing processes defined in accordance with this
methodology were launched using the Quick Test
Professional system.
The infrastructure of the Bank Asya internet branch
was renewed using Java technology in 2009. The
advantages offered by Web 2.0 technology were
combined with a completely different visual design
and made available for customers to use. The new
online branch has been improved with design features
that allow users to make visual changes according to
their preferences and with an advanced navigation
system that provides quick access to frequently used
menus.
The bank’s www.asyacard.com.tr was opened for
credit card customers. Not long afterward the website
received the “Best in Class” award in the “Banking”
category from Interactive Media Council.
In line with the strategic goals that had been set for
the year, customer relationship management (CRM)
activities were launched in 2009. CRM strategies have
been identified and a roadmap for the deployment
of their associated projects in the years ahead has
been drawn up. Under the same heading, work has
also begun on the development of a segment-based
business model.
It was decided to use the TONBELLER Siron system
to bring the bank into compliance with anti-money
laundering regulations. This project was initiated in
2009.
Under the heading of note-related process
centralization, the entire cycle from note scanning to
collection was redesigned. The new system, which is
now in operation, has already resulted in significant
improvements in operational efficiencies and cost
savings.
Bank Asya’s information
technology working model
is based upon standard
methods and approaches
that are regarded as
generally accepted practices
throughout the world.
47
Virtual cards were introduced during 2009 for both
MasterCard and Visa customers. By allowing users to
define limits from the bank’s internet branch, these
cards significantly reduce the risk of losses due to
fraud etc when shopping online.
We have reached the final stage in a project to
change over to a more advanced version of the
bank’s call center infrastructure. The bank’s disaster
recovery center systems will also be commissioned in
the period ahead.
In 2009 Bank Asya introduced “cashback” service
for customers who use the bank’s debit cards when
shopping. This feature allows them to receive an
additional amount of cash along with the goods that
they buy from vendors, with both amounts being
immediately withdrawn from their accounts.
Work has begun on the bank’s Central Log
Management system. This is also slated to become
operational in the period ahead.
Bank Asya has introduced an FC-denominated virtual
POS to meet the needs of vendors who serve the
bank’s foreign customers.
After a lengthy research and development process,
Bank Asya’s “DIT Pratik”, the world’s first prepaid
contactless bank card, was introduced to the market
along with MasterCard. Since the end of 2009, Bank
Asya branches have been authorized to issue these
cards to anyone who walks in, whether they are bank
customers or not. The issuing process usually takes
just fifteen minutes. Mass-produced “anonymous”
cards can also be purchased from merchant partners.
IT Infrastructure Investments
Operations management solutions have been
introduced in order to ensure the detailed and
proactive “end-to-end” monitoring of the bank’s
information technology (IT) infrastructure systems.
These solutions make it possible to spot problems
in infrastructure, network, software, and hardware
systems ahead of time and to ensure that the IT
environment is effectively controlled.
The Bank Asya Active Directory infrastructure was
upgraded to the Windows Server 2008 platform, with
is more advanced and more secure.
The bank’s virtualization infrastructure was
doubled in size during 2009. In addition to its cost
advantages, the virtualization platform which the
bank has deployed allows hardware to be used more
effectively, flexibly, and productively while also
providing a high degree of accessibility to system
infrastructure through faster and easier system
management.
Data link capacities between headquarters and
branches were increased, making it possible for
branches to serve customers faster.
In the coming year we intend to change over to a
faster infrastructure by upgrading the basic banking
system data base system one level. Development and
testing work for this project is now under way.
Research and development
Research work is being conducted in ways to allow
clients in different locations to download and install
software from remote sources. This system will also
provide for automatic monitoring of client/server
inventories.
A large number of research projects that are
being run in parallel with one another are looking
into ways to make use of appropriate alternative
communication technologies in different aspects of
banking.
A variety of web and mobile technologies are being
explored for possible use in order to make some of
the processes that customers initiate more accessible
and efficient.
Under the heading of operational process
optimization and centralization, research and
development work is currently being carried out in
the areas of document management systems and
document processing hardware.
Research work is being conducted into ways in which
voice recognition technology may be used to improve
security in call center and online branch applications.
Bank Asya-designed transportation fare solutions are
now being used on buses in four cities, at highway
toll collection booths, on Turyol passenger ferries,
and in some taxis. New and innovative features are
constantly being introduced in this business line.
R&D work is currently looking into single-use cards,
anonymous cards, unattended POS, parking facility,
and a variety of university campus solutions.
R&D work has begun on the creation of a “service
oriented architecture” that will be providing the
infrastructure for projects that are being planned in
the years ahead.
R&D work has begun on the creation of a new roof
that will support a project whose aim is to simplify
the structure of the bank’s call center.
48
responsible
Investing in our country’s future
Believing that investing in Turkish football is
the same as investing in the country’s future,
Bank Asya has been a named sponsor of the
Turkish Football Federation’s 1st League since the
beginning of 2008. Through its sponsorship, Bank
Asya seeks to improve both the brand value of
the 1st League and the quality of football that is
played in it.
International awards
“Best Film”
Wrong Rosary, a film produced with
Bank Asya support, returned from the
38th Rotterdam Film Festival and the
6th Crossing European Film Festival
with the “Best Film” awards.
Conservationist,
artistic, sensitive,
sport fan
During the year, Bank Asya
sponsored a variety of activities
in order to highlight its
“conservationist, artistic, sensitive,
sport fan” aspects along with
its reputation as a “banking
specialist”.
The Hijra:
A Sacred Journey
The Hijra: A Sacred Journey, the ninth in Bank
Asya’s series of cultural publications, was
released in February 2009.
49
50
Corporate Social Responsibility
In addition to its league
sponsorship, Bank Asya also
provides material support
to the league by supplying
liveried uniforms to fourteen
of its eighteen teams.
Corporate communication and publicity
Bank Asya sponsors a variety of sport, cultural,
artistic, and other events as a way of undertaking and
supporting projects that contribute to the wellbeing
of society while drawing attention to the importance
of shared values whose aim is to create a better and
more livable world for future generations.
of sports in Turkey, Bank Asya has undertaken the
sponsorship of Aşkın Karaca, a 19-year-old track
athlete. Mr Karaca broke Turkish indoor and outdoor
junior-league records a total of four times in 2009
while finishing second in the European Athletics
Junior Championship and third in the World Junior
Championship.
Throughout the year Bank Asya remained in effective
and constant communication with its customers
and employees and with media organizations and
the public at large. All of the bank’s corporate
communication and marketing activities are intended
to reach out to all of its stakeholders.
The Bank Asya Çırağan Kolej Spor Basketball Team,
a third-league team of which Bank Asya is a named
sponsor, once again successfully carried the Bank
Asya name to new heights through its superior
performance during the year.
Sponsorships
During the year, Bank Asya sponsored a variety of
activities in order to highlight its “conservationist,
artistic, sensitive, sport fan” aspects along with its
reputation as a “banking specialist”.
Event sponsorships
Events such as the İNEPO International Environmental
Project Olympiad and the Turkish Olympiads, which
have become identified with Bank Asya over the
years, continue to be sponsored. In addition, the
bank also sponsors events that focus on trade and
finance-related matters like the Active Academy 7th
Financial Summit and meetings held by the Turkish
Confederation of Businessmen and Industrialists
(TUSKON).
Culture and art sponsorships
Continuing to support culture and art, Bank Asya has
been a prime sponsor of the Fatih University “Crystal
Clapperboard Short Film Competition” for three years.
The objectives of this competition are to take Turkish
cinema to new heights and to encourage youngergeneration filmmakers.
In 2009 Bank Asya also sponsored two feature-length
films. The bank intends to continue such support in
the years ahead as well.
Wrong Rosary, a film produced with Bank Asya
support, returned from the 38th Rotterdam Film
Festival and the 6th Crossing European Film Festival
with the “Best Film” awards and was also the recipient
of numerous awards at both the İstanbul Film Festival
and the Golden Boll Film Festival. Eşrefpaşalılar,
another feature-length film sponsored by Bank Asya,
will be shown around the country in 2010.
Media sponsorships
During 2009 Bank Asya sponsored a variety of
appearances and presences which supported the
bank’s corporate image and which took place variously
in 5 newspapers, 6 radio stations, and 15 TV channels.
The bank also sponsored a variety of TV, radio, and
newspaper activities that appeared during Ramadan.
Sport sponsorships
Believing that talented young people need to be
supported individually for the sake of the future
Bank Asya 1st League
Believing that investing in Turkish football is the
same as investing in the country’s future, Bank Asya
has been a named sponsor of the Turkish Football
Federation’s 1st League since the beginning of 2008.
Through its sponsorship, Bank Asya seeks to improve
both the brand value of the 1st League and the
quality of football that is played in it. In addition to its
league sponsorship, Bank Asya also provides material
support to the league by supplying liveried uniforms
to fourteen of its eighteen teams.
Under the heading of the Bank Asya 1st League
Awards, conducted for the first time in the history
of the 1st League in May 2009, 1st League players
selected by popular vote became the recipients of the
bank’s “11 of the Year” awards in seven categories.
In addition to the material support that Bank Asya
provides to Turkish football and sport clubs, it also
gives out awards in a number of categories with the
aim of supporting institutionalization in such clubs.
Periodical publications
Bank Asya publishes Biz Asya, a quarterly inhouse magazine whose aims are to strengthen
communication within the company while also
appealing to the interests of customers as well.
Another bank-published periodical is Bank Asya 1.
Lig, which first appeared at the beginning of 2009
and is the first and still the only 1st league magazine
in Turkey. This monthly is delivered personally to
subscribers and can also be obtained free of charge at
Bank Asya branches by anyone who wants a copy. The
publication has already attracted a wide readership.
Bank Asya cultural services
As a requirement of its social responsibility policy,
Bank Asya continues to support cultural services
carried out with the aims of taking responsibility for
our historical and cultural assets and of promoting
and keeping our cultural heritage alive. As part of
this effort, Mukaddes Göç Hicret (The Hijra: A Sacred
Journey) was published in February 2009. The ninth in
the series of works supported by Bank Asya, the book
introduces the concept of “hijra” in the broad sense
while providing detailed explanations of previous
prophets’ hijras and finally that of Muhammad. The
accounts are accompanied by photographs of the
routes that were taken.
51
Subsidiaries and Affiliates
Işık Sigorta
Işık Sigorta is an İstanbul-based general insurer
established in 1996 with the special mission of
attracting those who were unfamiliar with insurance
or had negative attitudes about it. Işık Sigorta’s
capitalization amounts to TRY 60 million in which
Bank Asya controls a 65.42% stake.
Işık Sigorta has adopted a customer-focused
structure making use of an advanced data processing
network and experienced personnel in order to
supply better service on insurance consultancy issues
to its customers. It develops products in line with
customers expectations and needs and delivers them
with a perfectionist service approach before, during,
and after sales.
Işık Sigorta also gives importance to its corporate
structure and is continuing its efforts in this direction.
Investing in technology in order to ensure both the
continuity of its services and its uninterrupted ability
to supply them, Işık Sigorta was the first insurance
company to set up an online system connecting
itself with its agents. This system continues to give
the company a huge advantage in terms of business
conduct and service quality.
In November 2007 the company moved its
headquarters into a modern, fully-automated “smart”
building along with Bank Asya and since then it
has been serving its agents and customers from its
prestigious new premises.
Işık Sigorta conducts its activities through its
Marmara, Ankara, İzmir, Adana, and Antalya regional
departments and its Bursa and Trabzon regional
representatives, through more than 400 authorized
agents located all over the country, and through the
branches of Bank Asya, Albaraka Türk, and Türkiye
Finans.
Tuna Gayrimenkul Yatırım Ortaklığı AŞ
Tuna Gayrimenkul Yatırım Ortaklığı AŞ is a real estate
investment trust. Formerly a construction company
known as Asyafin Turizm Proje İnşaat Emlak Sanayi
ve Ticaret AŞ, the company turned itself into a REIT
after obtaining a license from the Capital Markets
Board and it commenced operations in that capacity
as of 30 September 2009. Tuna GYO is authorized
to invest in real estate properties, in capital market
vehicles based on real estate properties, in real estate
development projects, in real estate-based rights,
and in capital market vehicles and also to engage in
all other activities allowed by CMB regulations and
communiques pertaining to real estate investment
trusts.
Bank Asya directly controls a 22.94% stake in Tuna
GYO. Nil Yönetim Hizmetleri Emlak Turizm Sanayi
ve Ticaret AŞ, a majority-held Bank Asya subsidiary,
controls a 46.45% stake.
Nil Yönetim Hizmetleri Emlak Turizm Sanayi ve
Ticaret AŞ
Nil Yönetim Hizmetleri Emlak Turizm Sanayi ve Ticaret
AŞ is a real estate management services company
that operates the Asya Termal Holiday Village owned
by Tuna GYO. Bank Asya controls a 99.93% stake in
the company.
Asya Termal Holiday Village is located in
Kızılcahamam, a thermal springs spa located 70 kms
north of Ankara that has been known and used for
centuries by many different cultures and civilizations.
Occupying an area of approximately 100,000 m², Asya
Termal Holiday Village contains a 5-star hotel with 94
rooms and a 200 bed capacity, 494 deluxe timeshare
houses (held under 11,856 two-week contracts),
recreation facilities, indoor and outdoor swimming
pools, health units, a shopping center, a cultural
center, and a congress center.
Asya Termal Holiday Village quickly established a
solid reputation as a prestigious venue for holidays
and as a health and congress tourism destination.
Since the day it was founded, it has played host to
many famous Turkish and international guests and
to important meetings and events. The resort plays a
major role in promoting Kızılcahamam as a nationally
and internationally famous spa.
52
Independent Auditors’ Compliance Opinion on
Annual Report
Asya Katılım Bankası A.Ş. Genel Kurulu’na;
Asya Katılım Bankası A.Ş.’nin 31 Aralık 2009 tarihi itibarıyla hazırlanan yıllık faaliyet raporunda yer alan finansal bilgilerin ilgili hesap dönemi sonu
itibarıyla düzenlenen bağımsız denetim raporu ile uyumluluğunu ve doğruluğunu denetlemiş bulunuyoruz. Rapor konusu yıllık faaliyet raporu
Banka yönetiminin sorumluluğundadır. Bağımsız denetimi yapan kuruluş olarak üzerimize düşen sorumluluk, yıllık faaliyet raporunda yer alan
finansal bilgilerin bağımsız denetimden geçmiş finansal tablolar ve açıklayıcı notlar ile uyumuna ilişkin olarak denetlenen yıllık faaliyet raporu
üzerinde görüş bildirmektir.
Denetim, 5411 sayılı Bankacılık Kanunu uyarınca yürürlüğe konulan yıllık faaliyet raporu hazırlanmasına ve yayımlanmasına ilişkin usul ve esaslar
ile bağımsız denetim ilkelerine ilişkin düzenlemelere uygun olarak gerçekleştirilmiştir. Bu düzenlemeler, yıllık faaliyet raporunda önemli bir
hatanın olup olmadığı konusunda makul güvence sağlamak üzere planlanmasını ve yürütülmesini gerektirmektedir. Gerçekleştirilen denetimin,
görüşümüzün oluşturulmasına makul ve yeterli bir dayanak oluşturduğuna inanıyoruz.
Görüşümüze göre, ilişikteki yıllık faaliyet raporunda yer alan finansal bilgiler, bütün önemli taraflarıyla, Asya Katılım Bankası A.Ş.’nin 31 Aralık 2009
tarihi itibarıyla 5411 sayılı Bankacılık Kanununun 40’ıncı maddesi gereğince yürürlükte bulunan düzenlemelerde belirlenen usul ve esaslara uygun
olarak bankanın finansal durumuna ilişkin bilgileri doğru bir biçimde yansıtmakta ve özet yönetim kurulu raporu ile tarafımızca verilen bağımsız
denetçi görüşünü içermekte olup, bağımsız denetimden geçmiş finansal tablolar ve açıklayıcı notlarda verilen bilgiler ile uyumludur. DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş. Member of DELOITTE TOUCHE TOHMATSU
Sibel Türker Sorumlu Ortak Başdenetçi, SMMM
İstanbul, 2 Mart 2010
Information on Management and
Corporate Governance Practices
54
56
58
60
62
64
66
68
69
76
76
77
78
Board of Directors
Statutory Auditors
Senior Management
Organization Chart
Committees
Summary Annual Report Human Resources Transaction Volume of the Risk Group of the Bank, Outstanding Loan and
Deposit Balances and Current Income and Expense Amounts Corporate Governance Principles Compliance Report The Bank’s Profit Distribution Policy Proposal to Distribute Bank Asya 2009 Year Profits 2009 Ordinary General Meeting Agenda Explanatory notes concerning the items on the 2009 Ordinary General Meeting Agenda
53
54
Board of Directors
1
(1) Behçet Akyar (*)
Chairman
Industrialist & businessman. Born
in İstanbul in 1955, Behçet Akyar
graduated from the İstanbul Academy
of Economic Sciences (Department
of Economics and Public Finance) in
1978. He began his career in 1979
as a managing partner of the firm
of Aker Kumaş Kollektif Şti and he
subsequently served in a number of
companies of which he was the owner.
He has been a partner and member
of the board of directors of Feza
Gazetecilik AŞ since 1992.
During the same years Mr Akyar also
served as a managing partner of Aker
Mağazacılık Tekstil Ticaret ve Sanayi
Ltd Şti, a position that he has also held
at Akerler Tekstil Ticaret ve Sanayi Ltd
Şti since 1997. He has been chairman
of the Bank Asya Board of Directors
since February 2010.
2
(2) Salih Sarıgül
Vice Chairman
Businessman. Born in Van in 1955,
Salih Sarıgül is a graduate of Ege
University (Faculty of Economics).
He was appointed to a seat on Bank
Asya’s board of directors in December
2006 after having previously served
as a statutory auditor since July 2004.
He currently also holds the positions
of vice chairman at Nil Yönetim
Hizmetleri Turizm Sanayi ve Ticaret AŞ,
board member at Işık Sigorta AŞ, board
member at Asya Kart Teknolojileri
Hizmetleri AŞ, vice chairman at Yeni
Mağazacılık AŞ, vice chairman at
Landmark Supply Holding AŞ, and
statutory auditor at Tuna Gayrimenkul
Yatırım Ortaklığı AŞ.
3
(3) Cemil Özdemir (**)
Born in Sivas in 1960, Cemil
Özdemir graduated from Ankara
University (Faculty of Political
Sciences, Department of Business
Administration) in 1984. Having
successfully sat for the qualifying
examinations the same year, he began
his career as an assistant certified
banks comptroller. In that capacity he
spent a year in the United States doing
research on the subjects of investment
banking and risk capital. In December
1995 he resigned his position as
chief certified banks comptroller and
subsequently served as an assistant
general manager at Yurtbank AŞ, chief
assistant general manager at Family
Finans Kurumu AŞ, and managing
director at T. Halk Bankası AŞ before
joining Bank Asya as a member of the
Board of Directors in 2005. Mr Özdemir
served as the bank’s vice chairman and
as a member of the Audit Committee
in 2009. He has held the position of
board member and CEO of Bank Asya
* Tahsin Tekoğlu resigned his positions as chairman and member of the Bank Asya Board of
Directors effective 12 February 2010 and was replaced by Behçet Akyar in his capacity as
chairman and by İsmail Erol İşbilen as board member and member of the Audit Committee.
** Ünal Kabaca resigned his position as Bank Asya general manager and board member
effective 28 January 2010. He was replaced by Vice Chairman Cemil Özdemir in his
capacity as general manager and by Behçet Akyar as a member of the Board of Directors.
*** Tacettin Negiş was elected to a seat on the Audit Committee as of 12 February 2010.
4
(4) Tacettin Negiş (***)
Board Member
Businessman. Born in Bayburt in 1948,
Tacettin Negiş has been a member
of the Bank Asya Board of Directors
since July 2004. He also holds a seat
on the Board of Directors of Tuna
Gayrimenkul Yatırım Ortaklığı AŞ and
is the chairman of the firm of Negiş
Giyim İmalat ve İhracat AŞ.
5
6
(5) İsmail Erol İşbilen
Board Member
Born in Çankaya in 1959, İsmail
Erol İşbilen graduated from Ankara
University (Faculty of Political Sciences,
Department of Economics and Public
Finance) in 1981. He began his banking
career in 1983 as an assistant inspector
at T. Garanti Bankası AŞ. After serving
in a number of positions at the same
bank and eventually becoming its
assistant regional manager for İzmir,
he joined Bank Asya in 1997, where
he served for three years as a branch
manager and for four years as head
of the loans unit before resigning his
position in April 2004. From June 2005
to February 2010, Mr İşbilen served
as head of the financial analysis and
business intelligence department of
T.C. Ziraat Bankası AŞ and he rejoined
Bank Asya in the latter year. Since then
he has held seats on the bank’s Board
of Directors and Audit Committee.
Board members and their terms of office
Details pertaining to the constitution of the bank’s board of directors and to the terms of
office of its members are governed by article 32 of the bank’s articles of association. Board
members serve for three-year terms. A director whose term of office has expired may be
reelected.
Board of Directors TTahsin Tekoğlu
Cemil Özdemir
Tacettin Negiş
Salih Sarıgül
Ahmet Çelik
Murat Sungurlu
Ünal Kabaca Position held
Chairman
Vice Chairman
Board Member
Board Member
Board Member
Board Member
55
Since
1996
2005
2004
2006
2009
2009
1997
(6) Murat Sungurlu
Board Member
Textile manufacturer & businessman.
Born in Ankara in 1966, Murat
Sungurlu is a member of the İstanbul
Chamber of Commerce Board of
Governors. He has been a member of
the Bank Asya Board of Directors since
March 2009.
7
(7) Ahmet Çelik
Board Member
Businessman. Born in Erzurum in 1955,
Ahmet Çelik graduated from İstanbul
University (Faculty of Economics) in
1984. He began his career in 1983 as
a founding shareholder in the firms
of Yapı Yatırım ve Gayrimenkul AŞ
(housing and industrial construction),
Hamle Oto AŞ (corporate and fleet
vehicle rentals), Çelikeller AŞ (white
goods dealership), Çelikeller Ltd Şti
(foods), and Birim Gayrimenkul Ltd
Şti (real estate). Mr Çelik has been a
member of the Bank Asya Board of
Directors since 2009.
Board of Directors Meetings
Under article 38 of the bank’s articles of association, the Board of Directors must convene
at least four times during a fiscal year. The board meets whenever the company’s business
requires and/or upon the invitation of its chairman.
The bank’s board usually meets four times a month. Meetings are usually attended by all
members except in situations where members may have to excuse themselves. Under article
44 of the bank’s articles of association, directors are paid a fee for each board meeting that
they attend.
56
Statutory Auditors
1
(1) Atif Bilgin
Statutory Auditor
Businessman. Born in Elbistan in 1952,
Atif Bilgin has been a statutory auditor
of Bank Asya since 2006. He also holds
a seat on the Board of Directors of
Asya Kart Teknolojileri Hizmetleri AŞ
and serves as a statutory auditor for
Nil Yönetim Hizmetleri Turizm Sanayi
ve Ticaret AŞ.
2
(2) İrfan Hacıosmanoğlu
Statutory Auditor
Businessman. Born in Of in 1962,
İrfan Hacıosmanoğlu is the owner of
the firm of İrfan Tekstil Sanayi Ticaret
Ltd Şti. He was appointed a statutory
auditor of Bank Asya in March 2009.
He currently serves as a board vice
chairman at Forum İnşaat Dekorasyon
Turizm Sanayi ve Ticaret AŞ, as a board
member at Işık Sigorta AŞ, as a board
member at Asya Kart Teknolojileri
Hizmetleri AŞ, as a board member at
Yeni Mağazacılık AŞ, and as a board
member at Landmark Supply Holding
AŞ.
3
(3) Ali Akbulut
Statutory Auditor
Textile manufacturer & businessman.
Born in Malatya in 1956, Ali Akbulut is
a graduate of İnönü University (Faculty
of Economic and Administrative
Sciences). He has been a statutory
auditor at Bank Asya since 2000. He
holds the license for Feza Gazetecilik
AŞ, a news paper publisher and also
currently serves as a board member at
Nil Yönetim Hizmetleri Turizm Sanayi
ve Ticaret AŞ, as board chairman at
Ortadoğu Tekstil Ticaret ve Sanayi AŞ,
and as a board member at Asya Kart
Teknolojileri Hizmetleri AŞ.
The statutory auditors and their terms of office
Details pertaining to the constitution of the bank’s board of statutory auditors and to
the terms of office of its members are governed by article 49 of the bank’s articles of
association. Statutory auditors serve for three-year terms.
Board of Statutory Auditors Ali Akbulut
Atif Bilgin
Position held
Statutory Auditor Statutory Auditor
Statutory Auditor
Since
2000
2006
2009
57
Changes in the memberships of the Board of Directors and among the Statutory
Auditors during 2009
Elections were held to seats on the bank’s board of directors and to its positions of statutory
auditor at the general meeting of 21 March 2009 due to the expiration of the three-year
terms of the existing incumbents.
In these elections:
Tahsin Tekoğlu, Cemil Özdemir, Tacettin Negiş, Salih Sarıgül, Ünal Kabaca, Ahmet Çelik, and
Murat Sungurlu were elected to three-year terms as members of the Board of Directors.
Ali Akbulut, Atif Bilgin, and İrfan Hacıosmanoğlu were elected to three-year terms as
statutory auditors.
58
Senior Management
1
(1) Cemil Özdemir
Born in Sivas in 1960, Cemil
Özdemir graduated from Ankara
Sciences, Department of Business
Administration) in 1984. Having
successfully sat for the qualifying
examinations the same year, he began
his career as an assistant certified
banks comptroller. In that capacity he
spent a year in the United States doing
research on the subjects of investment
banking and risk capital. In December
1995 he resigned his position as
chief certified banks comptroller and
subsequently served as an assistant
general manager at Yurtbank AŞ, chief
assistant general manager at Family
Finans Kurumu AŞ, and managing
director at T. Halk Bankası AŞ before
joining Bank Asya as a member of the
Board of Directors in 2005. Mr Özdemir
served as the bank’s vice chairman and
as a member of the Audit Committee
in 2009. He has held the position of
board member and CEO of Bank Asya
2
(2) Ayhan Keser
Executive Vice President
Born in Ankara-Kalecik in 1970, Ayhan
Keser graduated from Middle East
Technical University (Department of
Economics) in 1991. After working
briefly at T.C. Ziraat Bankası, he served
as an assistant and then full certified
banks comptroller at the Treasury
Undersecretariat. Mr Keser joined Bank
Asya in September 1997 and currently
holds the position of executive vice
president at the bank.
3
(3) Mustafa Büyükateş
Born in Konya in 1957, Mustafa
Büyükateş graduated from Atatürk
University (Faculty of Business
Administration) in 1981. He began his
banking career in 1985 on the Board of
Inspectors of Garanti Bankası and also
served in the same bank’s inspection
and project implementation units
between 1985 and 1996. Mr Büyükateş
joined Bank Asya in 1996, serving in
positions in the retail banking and
corporate marketing departments. He
has held the position of executive vice
president at the bank since 2004.
4
(4) Yusuf İzzettin İmre
Born in Konya-Doğanhisar in 1958,
Yusuf İzzettin İmre graduated
from the Tarsus College of Foreign
Languages in 1978 and from Uludağ
University (Faculty of Economic and
Administrative Sciences, Department
of Public Finance) in 1984. He began
his career in banking in 1985 as an
assistant bank inspector at Egebank.
He subsequently held management
positions in accounting, budget,
and financial control at Egebank
(1990-1994) and at Arap Türk Bankası
(1994-1996). Mr İmre joined Bank Asya
in October 1996 as an accounting,
budget, and financial control manager
and he has held the position of
executive vice president at the bank
since June 2004. He is also a member
of the Board of Directors of Senegalbased Tamweel Africa Holdings Inc.
5
(5) Dr. Mahmut Demirkan
Born in Kayseri in 1964, Mahmut
Demirkan graduated from İstanbul
Sciences, Department of Public
Administration) in 1991 and also holds
a master’s degree in Management
and Organization (1991) and a
doctorate in Social Policy (1996)
from İstanbul University (Institute of
Social Sciences). Dr Demirkan served
as a national project specialist for the
United Nations Development Program
(UNDP) Bin 1990-1993 and began his
academic career as a researcher at the
Sakarya University Faculty of Economic
and Administrative Sciences in the
latter year. He has been a member
of the faculty of the Department of
Human Resources Management at the
same school since 1997. Dr Demirkan
joined Bank Asya in 2003 as the bank’s
organization and quality manager and
served as information technologies
and management systems group
manager in 2005-2008. He has held
the position of executive vice president
at the bank since February 2008.
6
(6) Buket Gereçci
Born in Gaziantep in 1967, Buket
Gereçci is a is a graduate of Ankara
Sciences, Department of International
Relations). She began her banking
career at Garanti Bankası in 1990 and
subsequently worked at Toprakbank
and then Finansbank. She joined Bank
Asya in 2002 as the manager of the
bank’s Gaziantep branch and has held
the position of executive vice president
7
(7) Ali Tuğlu
Born in İstanbul in 1969, Ali Tuğlu
is a graduate of İstanbul Technical
University (Department of Computer
Engineering) and holds a masters
in computer science from Virginia
Tech University (1995). He began his
career as a teaching assistant at the
same school and served there from
1993 to 1995. In 1995-1996 he was
a software project manager for CGN
Consulting in the United States and in
1997-1998 a software group manager
for the Minerva software house. From
1998 to 2008, he served in a variety of
positions in the national and regional
organizations of Hewlett Packard
in Turkey, eventually becoming HP’s
Consulting Segment Manager for the
Middle East, Africa, and Mediterranean.
Mr Tuğlu joined Bank Asya in March
2008 and currently holds a position
as an executive vice president
responsible for the bank’s Information
Technologies Group.
59
8
(8) Salim Köse
Group Manager and Chief Legal
Advisor
Born in Afyon in 1966, Salim Köse
is a graduate of İstanbul University
(Faculty of Law). He began his career
at Emlak Bankası while still a student
in 1990 and he remained at that
bank until 1998. He was subsequently
recruited by Etibank to serve as a
bank attorney and assistant legal
consultant. In 2001 he joined the
Savings Deposit Insurance Fund and
worked there until 2007 serving as
attorney, group manager, assistant
office head, and group coordinator.
During his tenure there, he also held
directorial and administrative positions
with management and auditing
responsibilities on a number of firms
that were taken over by the fund.
Mr Köse joined Bank Asya as chief
legal advisor in August 2007. Since
December 2008, he has been heading
a group consisting of the bank’s
Legal Office, Non-Performing Loans
Department, and Risk Monitoring
Department.
60
Organization Chart
BOARD OF DIRECTORS
CEO
Consultancy to the CEO
Board of Directors
Office Management
Osman Nuri Ersen
Investor Relations
Rifat A. Çağlayan
Ayhan Keser
Mustafa Büyükateş
Buket Gereçci
Corporate Marketing
Ali Şenel
Retail Products
Management
Semih Alşar
Commercial
Marketing-I
Retail Loans
Allocation
Ender Gürer
Hasan A. Küçük
Legislation and
Compliance
Commercial
Marketing-II
Nazan Ergün
Atilla M. Topçu
SME Banking
Tolga Sasık
Financial
Institutions
İbrahim Öğüdücü
Treasury
Cenk Yavuz
Advertising and
Public Relations
N. Çiğdem Belgutay
Payment Systems
Mustafa Ölmez
ADC Operations
İsrafil Aydın
ADC Marketing
Banking Services
Yasemin Aydın
J. Başak Ünal
Retail Sales
Management
Cash Management
Elif Özmen
Cem Günçavdı
Credit Operations
Adil Zeki Şahin
International
Transactions
Olcay Çakır
Yusuf İzzet İmre
Dr. Mahmut Demirkan
Ali Tuğlu
Group Manager and
Chief Legal Advisor
Salim Köse
Budget and Reporting
Human Resources
System Development
Legal Consultancy
Inspection Board
Kamil Yılmaz
Ömer Faruk Şenel
Mustafa Saraç
Serhat Güler
Hilali Yıldırım
General Accounting
Administrative Affairs
Software Development
Non-performing Loans
Internal Control
Fuat Akgün
Erol Anlı
Bülent Güngör
Zafer Ertan
Mahmut Yalçın
Financial Analysis &
Information
Construction &
Development
System Operations
Risk Monitoring
Risk Management
Erdal Erdem
Hüseyin Sevil
Bekir Başkurt
Mete Eryaşar
Mehmet Kamil Tümer
Credit
Allocation-I
Ali F. Taşkesenlioğlu
Credit
Allocation-II
Özcan Özverim
Training
Ömer Faruk Şenel
(acting)
Information Technology
Project Management
M. Ergün Aydemir
Purchasing
Card Technologies
Sabahattin Kaplan
Sami Özen
Organization and
Quality
Jale Doğu
61
62
Committees
Credit Committee
Position
Member
Member
Member
Name
Ahmet ÇELİK
Salih SARIGÜL
Ünal KABACA
Title
Board member
Board member
President & CEO
The Credit Committee is responsible for evaluating proposals to extend commercial, corporate, and small business credit throughout the bank and
it convenes regularly every week. The Credit Committee has the power to extend or refuse to extend credit within the limits of its own authorities
subject to the requirements of banking laws and regulations. Proposals that exceed those limits are submitted to the Board of Directors for
approval.
Corporate Governance Committee
Position
Chairman
Member
Member
Member
Member
Member
Name
Tahsin TEKOĞLU
Cemil ÖZDEMİR
Yusuf İzzettin İMRE
Mahmut DEMİRKAN
Mehmet Kamil TÜMER
A. Rifat ÇAĞLAYAN
Title
Board member
Head of Risk Management
Investor Relations Manager
The Corporate Governance Committee convenes at least three times a year in order to follow up the Bank’s compliance with the corporate
governance principles and bring forward proposals to the Board of Directors for improvement in this manner.
Audit Committee
Position
Member
Member
Name
Tahsin TEKOĞLU
Cemil ÖZDEMİR
Title
Deputy Chairman of the Board of Directors
The Audit Committee periodically prepares a “Audit Committee Activity Report” of the auditing and risk management results obtained in order to
ensure that an effective internal audit and risk management system has been established throughout the bank it and reports them to the Board of
Directors. The Audit Committee convened ten times during 2009 and all committee members were present at all meetings. The Audit Committee
also met an additional four times with the independent auditors in order to evaluate their independent auditing activities.
Assets and Liabilities Committee
Position
Chairman
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Name
Ünal KABACA
Ayhan KESER
Yusuf İ. İMRE
Mustafa BÜYÜKATEŞ
Buket GERECÇİ
Mahmut DEMİRKAN
Ali TUĞLU
Salim KÖSE
Kamil YILMAZ
Ali ŞENEL
Ender GÜRER
Atilla M. TOPÇU
Tolga SASIK
Mehmet Kamil TÜMER
Elif ÖZMEN
Semih ALŞAR
Cenk YAVUZ
Title
President & CEO
Group Manager & Chief Legal Advisor
Budget & Reporting Manager
Corporate Marketing Manager
Commercial Marketing I Manager
Commercial Marketing II Manager
Enterprise Banking Manager
Head of Risk Management
Retail Sales Manager
Retail Products Manager
Treasury Manager
63
Committees
Member
İbrahim ÖĞÜDÜCÜ
Financial Institutions Manager
The Assets and Liabilities Committee convenes every week in meetings which are presided over by the president & CEO and are attended by
executive vice presidents and by the managers of units whose activities might have an impact on balance sheet results. Meeting agendas consist
of assessing the bank’s balance sheet and business line activities, general economic data, and current political and economic developments and of
determining strategies for the coming week.
Information Technologies Strategy and Steering Committee
Position
Chairman
Member
Member Member Member Member Name
Ünal KABACA
Ali TUĞLU
Bekir BAŞKURT
Bülent GÜNGÖR
M. Ergün AYDEMİR
Mustafa SARAÇ
Title
President & CEO
System Hardware Manager
Software Development Manager
Information Technology Projects Manager
Systems Development Manager
The Information Technologies Strategy and Steering Committee convened periodically during 2009 in meetings at which strategic and tactical
plans in line with business targets and IT budgets were formulated and IT activity and plan compliance issues were reviewed and reported.
Discipline Committee
Position
Chairman
Member
Member
Member
Name
Ünal KABACA
Mahmut DEMİRKAN
Salim KÖSE
Ömer Faruk ŞENEL
Title
President & CEO
Group Manager & Chief Legal Advisor
Human Resources Manager
The Discipline Committee determines the existence of acts and transactions that necessitate disciplinary action as per the bank’s own bylaws
and regulations as well as the perpetrators, the degrees of culpability, and the possible liabilities thereof. The Discipline Committee convenes as
circumstances warrant in meetings which are presided over by the president & CEO and are attended by such managers as may be involved and at
which the issues on the agenda are decided upon.
Information Security Management Committee
Position
Chairman
Member
Member
Member
Name
Ali TUĞLU
Mahmut DEMİRKAN
Buket GEREÇCİ
Ender ŞAHİNASLAN
Title
Information Security Manager
The Information Security Management Committee convenes regularly every three months in meetings at which information security activities are
reviewed, developments are observed, and managerial decisions are made.
64
Summary Annual Report
The Turkish banking sector grew more slowly in 2009 than it did in previous years as the effects of the global economic crisis began to make
themselves felt in Turkey in line with developments taking place in domestic and international markets.
Considered from the standpoint of Bank Asya however, the bank performed better in 2009 notwithstanding the effects of the global economic
crisis. Despite its adverse economic environment, 2009 was a positive and successful year for Bank Asya in terms of both growth and profitability.
According to Bank Asya’s key financial indicators for 2009, profits were up 22% year-on and amounted to TRY 301 million. In the twelve months to
end-2009, the bank’s total assets had increased 43% and reached TRY 11.6 billion. The deposit base was expanded and the deposits were extended
as credit to corporate, commercial, enterprise, and retail banking customers. Cash loans, which had a significant impact on the bank’s balance sheet
growth, increased 31% year-on and amounted to TRY 8.3 billion while deposits, the most important of the bank’s liability-side items, grew 56%
and reached TRY 9.1 billion in value. In 2009 Bank Asya posted a 3.06% rate of return on assets and a 19.36% rate of return on equity.
In light of the developments briefly summarized above, in the year to 31 December 2009 Bank Asya’s:
• Total assets increased 43.16% to TRY 11,609 million
• Cash loans increased 30.93% to TRY 8,355 million
• Deposits increased 56.37% to TRY 9,137 million
• Equity increased 21.67% to TRY 1,708 million
• Net profit increased 22.21% to TRY 301 million
• Capital adequacy ratio reached 14.45%.
We hereby submit Bank Asya’s annual report and financial statements showing the results of the bank’s activities during the 31 January to 31
December 2009 period for your information and consideration.
Asya Katılım Bankası AŞ
Board of Directors
65
Human Resources
Information on the Number of Personnel
Number of personnel by month is as follows:
Number of Personnel
December 09
November 09
October 09
September 09
August 09
July 09
June 09
May 09
April 09
March 09
February 09
January 09
4,100
4,050
4,000
3,950
3,900
3,850
3,800
3,750
3,700
3,650
31.12.2008
3,806
31.12.2009
4,074
Change (%)
7.04%
Number
1,510
2,564
30.4
Ratio (%)
37
63
Breakdowns of the personnel by sex and average age are as follows:
%37
Male
Female
%63
Female
Male
Average age
Educational background of the personnel
PhD
Graduate
Undergraduate
0.4% 0.1% 5.1%
16.7%
17.2%
60.5%
Associate
High school
Primary school
66
Human Resources
Educational background
PhD
Graduate
Undergraduate
Associate
Lycee
Primary
Number
3
207
2,468
702
679
15
%
0.1
5.1
60.5
17.2
16.7
0.4
As the tables show, Bank Asya is a rather youthful and dynamic bank that gives importance to education. 66% of its personnel hold an associate’s
degree or higher. The bank’s lycee graduates are employed as security personnel and collecting agents. The bank gives the utmost importance
to personnel training, which is supported by participation in both in-house and extramural training programs and in university-level graduate
education.
Hiring and promotion
The primary goal of the Bank Asya Human Resources Department in its hiring processes is to recruit team players who identify with the bank’s
mission and vision in every way, who are interested in banking as a profession, and who will be able to keep up with the demanding pace required
of their individual and institutional development in an environment that is both tolerant and dynamic.
In line with this, we seek to create and maintain a workplace in which personnel conforming to the bank’s business and culture who have been
hired after being evaluated on the basis of their education, experience, and abilities may be employed and in which they will be provided with
appropriate opportunities and a high level of job satisfaction.
The first step of the recruitment and hiring process consists of identifying the bank’s requirements, in view of its growing and proliferating aims,
for human resources who will be able to sustain its high level of quality and its dynamic structure. The second is to evaluate both candidates from
among the bank’s own personnel and applicants who satisfy basic position requirements. Everyone who submits a job application to Bank Asya is
required to sit for recruitment examinations that are determined according to the positions they aspire to. Only those who are successful in this
position-based exams continue on to the next step of the recruitment process. The third and final step consists of interviews which are conducted
by human resource personnel and unit managers as dictated by the nature of job positions and during which candidates’ abilities are assessed in
light of the bank’s policy of “the right person for the right job”.
All career paths leading to even the highest positions at Bank Asya are open to all employees. Under Bank Asya’s promotion system, all employees
who have fulfilled minimum term of service requirements and who have performed successfully in their current jobs may be promoted to any
vacant position to which they are entitled to advance.
For employees at the bank to be promoted:
• There must be a vacant position to which they may advance
• They must be successful in their current job
• They must have fulfilled the minimum term of service in their current position
• They must have demonstrated a successful performance during their testing period
• They must have been successful in the training required for promotion
• They must never have been the target of disciplinary action.
67
Human Resources
Human Resources Department
The essential constituents of Bank Asya’s corporate culture are the principles of Professionalism, Innovativeness, Rectitude and Honesty, Trust,
Confidentiality, Love and Respect, Fairness, Effectiveness, Productiveness and Quality, Teamwork, and Social Responsibility.
All of Bank Asya Human Resources Department’s practices are informed by these principles.
We fulfill the requirements of our jobs without sacrificing our precepts or essentials and without involving our emotions in what we do. Our
actions our guided by the realization that no two days are ever the same. Relations among the bank’s personnel are rooted in the principle of
mutual trust and everything is done accordingly. We do not reveal any information about any person or organization with which we have a
business relationship with any other person or organization except to the degree permitted by law. We love what we do. We never sacrifice
fairness. We focus on our objectives at all times and in all ways. Our actions are inspired by our sense of teamwork.
The Bank Asya Human Resources Department’s primary objective is to plan, recruit, and employ an appropriate number of suitably qualified people.
In addition to this fundamental concern, achieving the highest possible level of productivity and effectiveness among our personnel, inspiring their
morale and motivation, protecting and advancing their material and moral rights, creating a workplace that enhances employees’ willingness to
work with their supervisors while striving to maintain good relations also number among the objectives of this department.
The Bank Asya Human Resources Department is organized into function-based units in order to manage the bank’s human resource activities more
effectively and to serve its personnel more efficiently.
These departmental units consist of:
• Recruitment and Career Progression: This office is responsible for all unit and branch hiring, promotion, career planning, and performance
management systems.
• Compensation and Health Services: This office is responsible for handling matters pertaining to employees’ salary, health, meal, and other
benefits.
• Records: This office is responsible for handling matters pertaining to employees’ records and to all legal reporting requirements.
Benefits Paid to the Bank’s Senior Management
In the year to end-2009, monetary benefits amounting to TRL 8,954,000 in total were paid to the members of the bank’s senior management. This
figure does not include the value of real rights which are provided to senior managers.
68
Transaction Volume of the Risk Group of the Bank, Outstanding Loan and Deposit Balances and
Current Income and Expense Amounts
RISK GROUP
CURRENT PERIOD (31.12.2009) (TRY THOUSAND):
Subsidiaries and Direct and Indirect Other Entities Included
Risk Group of the Bank
Associates
Shareholders of the Group
in the Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Loans and Other Receivables (*)
Balance at Beginning of Period
63,903 2,215 -
-
88,820 58,989
Balance at End of Period
52,357
9,225
-
-
220,914
68,491
Profit Share and Commission Income
17,917
-
-
-
25,148
1
(*) The risk group balance includes TRY 237 Thousand finance lease receivables (December 31, 2008: TRY 483 Thousand).
PRIOR PERIOD (31.12.2008) (TRY THOUSAND):
Associates
in the Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
76
432
-
-
27,587
33,530
63,903
2,215
-
-
88,820
58,989
6,654
-
-
-
8,985
120
RISK GROUP DEPOSITS BALANCES OF THE BANK:
Current and Profit Sharing Accounts
Profit Share Expense
Subsidiaries and Associates Current Period
48,108 56,994
6,803
Direct and Indirect
Current Period
-
-
-
Other Entities Included
in the Risk Group
Current Period
77,269
77,749
4,553
69
Corporate Governance Principles Compliance Report
Statement of compliance with corporate governance principles
Asya Katılım Bankası’s corporate governance structures, processes, and principles are formulated so as to be in compliance with the requirements
of the Banks Act as well as of all other applicable laws, regulations, and administrative provisions. Bank Asya publicly discloses all rules and
practices which determine the bank’s relationships with its board of directors, shareholders, and other stakeholders in line with its sense of social
responsibility subject always to the requirements of the Banks Act.
Relations with shareholders and investors
Our conducts its investor relations activities within the framework of its public disclosure and corporate governance principles through the Investor
Relations Department only and through the Shareholder Relations Unit of the Budget and Reporting Department, both of which departments are
responsible to the Board of Directors.
Investor Relations Department
In line with its primary objective of contributing towards the bank’s value in all respect by serving as a bridge between the Board of Directors and
investors in accodance with the bank’s public disclosure policy so as to ensure that the bank’s growth model and future goals are explicitly and
clearly understood and to increase the bank’s visibility and transparency in the financial services industry and sector, Bank Asya’s Investor Relations
Department holds meetings with the bank’s existing and potential investors by taking part in investor conferences organized in Turkey and abroad
and by conducting roadshows; holds meetings and communicates with brokerage officers and bank analysts; prepares investor presentations
concerning the bank’s activities at the ends of quarters and makes these available to investors on the bank’s website; holds teleconferences; and
responds to all verbal and written requests for information about the company with the exception of such matters about the bank which are not
publicly disclosed and which are neither confidential nor in the nature of trade secrets.
Contact information about the individuals responsible for the Investor Relations Department is presented below.
Name
A. Rifat Çağlayan
Uğur Güney
Nevzat Mutlu
Responsibility/Title
Investor Relations / Manager
Investor Relations / Officer
Investor Relations / Asst. Chief
Telephone
0216 633 5960
0216 633 5961
0216 633 5963
Email
[email protected]
[email protected]
[email protected]
Shareholder Relations Unit
The principal duties of the Shareholder Relations Unit consist of:
• Ensuring that records pertaining to shareholders are maintained in a sound, secure, and current manner.
• Responding to shareholders’ written requests for all information about the bank except that which has not been publicly disclosed or is
confidential and/or in the nature of a trade secret.
• Ensuring that general meetings are conducted in accordance with the requirements of current laws and regulations and of the bank’s articles of
association and other bylaws.
• Preparing documents for the use of shareholders at general meetings.
• Recording the results of voting at general meetings and ensuring that such results are reported to shareholders.
• Supervising and following up on all issues related to public disclosures as required by law and the bank’s public disclosure policy.
• Making use of a section of the bank’s website to inform shareholders about issues that may be of close concern to them such as the bank’s
shareholder structure, board members, annual reports, capital structure, developments significantly impacting the bank’s financial well being,
quarterly profit/loss statements, information about branches and important personnel, and general meeting resolutions and ensuring that such
information is kept up to date.
The Shareholder Relations Unit sends reports about the activities of pertinent units to authorities through designated channels.
Contact information about the individuals responsible for the Shareholder Relations Unit is presented below.
Name
Kamil Yılmaz
Özlem Coşkun
Alpay Güneralp
Responsibility/Title
Pay Shareholder Relations / Manager
Shareholder Relations / Officer
Shareholder Relations / Chief
Telephone
0 216 633 5450
0216 633 5457
0216 633 5458
Email
[email protected]
[email protected]
[email protected]
70
Shareholders’ exercise of their right to obtain information
Bank Asya’s website located at www.bankasya.com.tr contains an “Investor Relations” section in both the Turkish and English languages where
issues about the bank that may be of concern to shareholders and to the public at large are published immediately. The same website also contains
details about Bank Asya shares, corporate brief, regularly published financial statements and reports, presentations, and corporate governance
structure.
Legally stipulated information as prescribed by the Banks Act, the Turkish Commercial Code, and the Capital Markets Law is publicly disclosed in
the form of “special circumstance announcements”.
All questions asked by shareholders about matters that are neither confidential nor in the nature of trade secrets are responded to by the
units concerned in keeping with the principles of fairness and equality. During 2009 an average of 300 questions a month were received from
shareholders by telephone and email and were responded to. The Investor Relations Department took part in an average of ten individual or group
meetings with existing or potential investors and bank analysts, at which times their questions about Bank Asya were responded to. During 2009
the Investor Relations Department took part in 32 foreign investor conferences and engaged in personal meetings with 320 investors.
Information about general meetings
Announcements concerning general meetings are published within the legally prescribed periods of time in the trade registry gazette and in the
press. Such announcements include a copy of the meeting agenda and a specimen proxy statement. Invitations are also sent out to shareholders by
mail.
During the reporting period, Bank Asya held its annual general meeting on 21 March 2009. Shareholders exercised their right to ask questions at
this meeting and all questions that were raised were responded to. No shareholder advanced any motion on any issue that had not been included
in the agenda.
The bank’s articles of association permits votes to be cast by proxy at general meetings.
Voting rights and minority rights
Shareholders are entitled to one vote for each one-lira share of stock that they own. Shareholders may exercise their voting rights personally or
through proxies.
• Voting at general meetings is by an open show of hands. Recourse may be had to secret ballot upon the demand of shareholders representing at
least one-twentieth of the capital present and voting.
Issues pertaining to proxy voting are determined within the framework of pertinent laws, regulations, and administrative provisions.
This matter is set forth in article 24 of the bank’s articles of association.
Dividend payment policy and timing
Principles pertaining Asya Katılım Bankası AŞ’s dividend payments are set forth in detail in the bank’s articles of association, a copy of which is
posted on the bank’s website. Matters concerning the implementation of the dividend payment policy are dealt with within the framework of these
articles of association. Dividends are paid out within statutorily prescribed periods of time.
The Board of Directors’ dividend payment proposal is one of the items placed on general meeting agendas. It is presented for the consideration of
shareholders and voted on by the general assembly.
This matter is set forth in article 54 of the bank’s articles of association.
Transfer of shares
The issue of share transfers is governed by article 11 of the bank’s articles of association as follows:
Transfers of A group shares, all of which are registered in the name of their owners, are subject to the approval of the Board of Directors. The
board may, entirely at its own discretion and without advancing any reason for doing so, refuse to allow such transfers; similarly it may approve
and allow such transfers under such terms and conditions as it may deem to be appropriate. Transfers of these shares are legally binding upon the
company only if they have been duly registered by the company.
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Transfers of B group shares, all of which are registered in the name of their owners, may take place without any need for Board of Directors
approval subject to the Turkish Commercial Code, the Capital Markets Law, and Central Registry Agency regulations.
Share transfers for which the Banks Act requires Banking Regulation and Supervision Agency approval may be made only if that agency’s
permission has been obtained. No transfer that does not have this required approval may be registered by the company. Those who acquire
shares for which Banking Regulation and Supervision Agency approval is required but for which permission is not obtained may not exercise any
shareholder rights other than that of receiving dividend payments.
Public disclosures and transparency
Company disclosure policy
A company disclosure policy was formulated by the Board of Directors in line with corporate governance principles with the aims of ensuring
that all stakeholders, including shareholders and the public at large, are kept informed in a timely, correct, complete, intelligible, and coordinated
manner. This policy was approved at an ordinary general meeting of the bank held on 31 March 2006.
In order to ensure that correct and timely information is supplied in line with this, presentations are made of the financial statements published
at quarterly intervals and these presentations are shared with investors on the bank’s website. Information about Bank Asya is provided by the
Investor Relations Department through its participation in investor meetings. Questions that investors and shareholders may have about these
issues are also responded to by telephone and email.
Public Disclosures
During 2009 Bank Asya published 23 (twenty-three) special circumstance announcements within the framework of CMB regulations.
Company website and content
The Asya Katılım Bankası AŞ website is in service at the address of www.bankasya.com.tr.
The bank’s website contains detailed information about the bank and about the products and services provided by the bank. Banking transactions
may be performed from the Bank Asya internet branch.
The “Investor Relations” section in both the Turkish and English languages on Bank Asya’s website contains information about the bank’s
management structure; the current text of the articles of association; general meeting invitations, agendas, and resolutions; annual reports;
periodical financial statements and reports; and Public Disclosures.
Particular attention is given to ensuring that the information on the bank’s website is kept up to date.
Disclosure of ultimate non-corporate controlling shareholder(s)
As of 31 December 2009 Bank Asya had a total of 255 shareholders. No shareholder controls more than a 10% stake in the bank. Information about
this matter is publicly disclosed on the bank’s website.
Public disclosure of those who may have access to internal information
A list of those who may have access to insider information about the bank has been published on the bank’s website since 30 April 2009. The
names of members of the Board of Directors and of senior managers who may be in such a position are published in annual reports and on the
website.
Stakeholders
Keeping stakeholders informed
Stakeholders are regularly kept informed about such matters as are deemed to be necessary. Organizational arrangements have been made as
needed to satisfy shareholders’, employees’, and customers’ requests for information. Through these arrangements, shareholders, customers,
employees, and regulatory agencies are kept effectively informed.
Stakeholder participation in management
Bank Asya has always encouraged employees to take part in management. For this reason, employees are able to express all of their opinions
and suggestions about the bank’s activities through an in-house suggestion system (Asya Öneri Sistemi) whose use requires no prior approval.
These opinions and suggestions are processed by personnel who are charged with this duty. They are then forwarded to suitable members of
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management for action to be taken as appropriate. All suggestions received from employees are responded to. Once a year, an assessment is made
of those suggestions on which action has been taken and awards are made accordingly.
During 2009 1,701 suggestions were received from the bank’s employees.
Human resources policy
These are basic principles of our human resources policy:
• Give attention to both quality and quantity in personnel planning. Employ personnel who conform to the bank’s business and culture.
• Maintain personnel productivity and effectiveness at the highest levels.
• Provide personnel with opportunities for professional, personal, and social development through effective training plans and programs.
• Maintain the highest degree morale and motivation among personnel possible at every level.
• Safeguard and advance employees’ material and moral rights.
• Create a workplace environment that will foster the willingness of all employees to work with their superiors while also striving to develop
human relations skills.
• Provide an open, two-way communication environment.
• Involve employees in career planning that provides everyone with fair and equal career opportunities.
A performance management system is used at Bank Asya. Under this system, employees are evaluated at regular intervals in terms of their
performance during the most recent period and they are informed about the results of such evaluations.
Every year an Internal Customer Satisfaction Survey is conducted at the bank in which employee satisfaction and job satisfaction is evaluated.
Employee job, social, and psychological satisfaction is also supported through an in-house club for personnel called “Yediveren” (“Semperflorens”).
During 2009 this club conducted a variety of meetings, events, and activities.
Work has been completed on a job description and associated salary scale system in our growing Bank. The new compensation system has been in
effect since 2008.
A total of 338,580 hours of training were provided to personnel in 2009. Average training time per person was 13.34 days.
Relations with customers and suppliers
Bank Asya employees:
• Provide correct, complete, and timely information on all matters during every stage of every relationship involving all the products and services
that are supplied to the bank’s customers.
• Are obliged to uphold and carefully maintain the confidentiality of all information and documents about customers that they may have access
to and not reveal anything to anyone other than those individuals and organizations whose authority to demand information and documents is
explicitly prescribed by law.
• Regard quality as an essential prerequisite for supplying any service that is intended to satisfy a customer’s needs and expectations; make every
possible effort to deploy the technological infrastructure and qualified human resources that are the two most fundamental elements of this
concept in such a way as to achieve continuous improvements in service quality.
• Make no distinctions with respect to nationality, religion, financial or social status, or sex when serving customers.
• The existence of an organizational structure and product lineup that identifies and differentiates among target groups and approaching
customers in different risk groups differently is not to be interpreted as justification for discriminating among customers or categorizing them.
Bank Asya investigates the reasons for any customer complaints that it receives via the (Customer Request Web Module, Alo Asya Call Center,
Happy Customer Hotline) systems that it has created. Measures are taken as necessary to avoid the repetition of any issues that led to justifiable
complaints. Such action includes correcting the practices that provoked the complaint and informing employees in order to prevent any
recurrences.
Social responsibility
Within the framework of its sense of social responsibility and of the requirements of the laws and regulations to which it is subject, Bank Asya
donates to and assists publicly beneficial foundations and associations, supports cultural publications, and sponsors congresses and conferences
dealing with matters pertaining to economics and banking.
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Bank Asya is respectful of people, of individual rights and liberties, and of the environment. It takes the requirements thereof into account in all
of its business processes, and strives materially and morally to fulfill those requirements at every opportunity. During 2009 the bank provided
assistance and donations to a variety of agencies and organizations in an aggregate amount corresponding to about three ten-thousandths of its
shareholders’ equity.
The bank is not a respondent in any suit on account of any environmental damage.
Penalties imposed by public authorities
During the reporting period the bank paid an amount equal to 0.07% of its current profit as fines imposed by a number of public authorities on
account of violations of the requirements of law.
Board of Directors
Structure and formation of the Board of Directors; non-executive members
Information about the members of the Board of Directors and president & CEO is presented below.
Name
Tahsin Tekoğlu
Cemil Özdemir
Ünal Kabaca
Salih Sarıgül
Tacettin Negiş
Ahmet Çelik
Murat Sungurlu
Position/Title
Chairman
Deputy Chairman
President & CEO
Board Member
Board Member
Board Member
Board Member
Members of the bank’s board of directors are elected in accordance with article 32 of the bank’s articles of association and the requirements of the
Banks Act.
Qualifications of members of the Board of Directors
The qualification that members of banks’ boards of directors must have are set forth in the Banks Act. Bank Asya complies with such requirements
in the election of its board members.
Mission, vision, and strategic goals of the company
The Board of Directors has formulated clear and intelligible statements of the bank’s vision and mission. These are set forth on its website and in its
annual reports.
Bank Asya’s mission and vision are presented below.
Mission: To contribute to shareholders and to the Turkish economy by satisfying customers’ needs and expectations with a “different solutions for
different expectations” approach and developing modern banking services within the framework of interest-free banking principles.
Vision: To be a respected, trusted, and effective bank that provides service at world standards through the products that it develops.
During the reporting period, the Board of Directors regularly reviewed the bank’s performance towards achieving the bank’s strategic goals and it
provided guidance on such issues.
Risk management and internal control mechanisms
Bank Asya has created an effective internal control and risk management system within the framework of the requirements of the Banks Act and
other laws, regulations, and administrative provisions to which it is subject.
This system consists of three separate units: Department of Internal Control, Risk Management Department, and Board of Inspectors. All three of
these report directly to the Board of Directors.
Duties and authorities of the bank’s board of directors
The duties and authorities of the Bank Asya Board of Directors are governed by article 35 of the bank’s articles of association, according to which
the board may decide on any matter that does not require a decision by the general assembly of shareholders.
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Specifically, the board:
a) prepares and approves internal regulations governing which matters pertain to the company’s internal affairs and thus may be dealt with by the
president & CEO and which matters only may be dealt with by means of Credit Committee or Board of Directors decisions;
b) reviews any issue that is deemed to be necessary and continuously oversees day-to-day administrative activities (for which duties board
members may be assigned by a board decision);
c) prepares the bank’s annual balance sheet and profit & loss statement; submits reports that describe a year’s activities as well as profit
distribution proposals to general meetings; specifies and makes arrangements for cash positions and guarantees taking the requirements of
applicable laws into account; has auditors’ reports available for examination within fifteen days of a general meeting;
d) comes to decisions on the forms of any and all procedures pertaining to the objectives regarding the company is founded;
e) determines, stipulates, and decides upon matters pertaining to the assignment, promotion, and dismissal and the annual salaries and expense
allowances of those who have power of signature, of the president & CEO and especially of those who report directly to the general manager, and
of other key personnel;
f) decides to open branches, offices, liaison offices, and regional offices and to grant them authorities within the framework of applicable laws,
regulations, and administrative provisions;
g) decides upon principles pertaining to real estate properties and equity stakes that are to be bought or sold in the company’s name.
h) performs all the duties stipulated in the Turkish Commercial Code and in other relevant laws, regulations, and administrative provisions; deals
with all matters other than those assigned to the general assembly of shareholders or to the statutory auditors by laws or under these articles of
association.
i) The Board of Directors may, when necessary as provided for article 319 of the Turkish Commercial Code, decide to delegate its powers to
represent and administer the company to one or more of its members or managers or committees consisting thereof for such a period of time and
under such terms and conditions as it deems to be appropriate.
j) The authority to extend credit rests with the Board of Directors. The Board of Directors is responsible for formulating policies pertaining to
extending and approving credit and to other administrative principles; for ensuring that these policies are applied and followed; and for taking
all necessary precautions. The Board of Directors may delegate its authority to extend credit to a credit committee or to a president & CEO in
accordance with the requirements of applicable laws and within the framework of principles and procedures to be determined by the board.
Operating principles of the Board of Directors
The Board of Directors convenes when necessary and/or upon an invitation by the chairman. Any member may submit a written request to the
chairman asking for a meeting to be convened. According to the bank’s articles of association, the Board of Directors must convene at least four
times during a fiscal year; however the tradition at Bank Asya is for board meetings to be held regularly at weekly or biweekly intervals except
under exceptional conditions. This tradition was upheld during 2009.
Board of Directors meetings are held at the company’s headquarters. With the approval of a majority of members however, board meetings may be
held at some other location and in some other city or country.
Board of Directors meetings are conducted according to agendas that are provided to members before the meetings take place. Board members
and statutory auditors may request the chairman to include on such agenda any issues that they wish to have discussed.
The Board of Directors convenes in the presence of a simple majority of its membership. Resolutions are passed by a simple majority of the
members who are present. Decisions about a proposal advanced by any member may be made by obtaining the written consent of other members
so long as none of them request that that the matter be discussed in a meeting. Decisions made in this way without a meeting however must be
unanimous. Every member of the Board of Directors is entitled to one vote. Neither the chairman nor any other board member may cast votes on
behalf of any member who is absent from a meeting.
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If the voting on an issue under consideration results in a tie at any meeting, the matter is to be bound over to another meeting. If the tie cannot
be broken at the next meeting, the proposal is deemed to have been rejected.
Decisions made by the Board of Directors are recorded the same day, in a matter indicating the date and sequential order of each resolution, in a
register which has been certified in accordance with the requirements of the Turkish Commercial Code and the Banks Act pertaining to books of
account and whose pages have been sequentially numbered. Every resolution must be undersigned by the board members who voted for it.
Prohibition on doing business or competing with the company
Neither the chairman nor any member of the Board of Directors may engage in business with the company as provided for under articles 334 and
335 of the Turkish Commercial Code nor may they compete with the company.
However a general assembly of shareholders may allow the chairman and all or any number of board members to engage in such business or
competition.
This matter is governed by article 42 of the bank’s articles of association.
Rules of ethics
At the Ordinary meeting held on 31 May 2006, it was decided that the Ethical Principals published by the Participation Banks Association of Turkey,
of which Bank Asya is a year-end, would be observed in the conduct of the bank’s activities as well.
Number, structure, and independence of committees established by the Board of Directors
Under a Board of Directors resolution dated 2 February 2006, the bank has created an “Audit Committee” and a “Corporate Governance
Committee” pursuant to article 24 of the Banks Act concerning the formation of audit committees and other relevant laws, regulations, and
administrative provisions to which the bank is subject. Board of Directors Chairman Tahsin Tekoğlu and Board of Directors Deputy Chairman Cemil
Özdemir are members of the Corporate Governance Committee.
The committees which have been set up are active in compliance with the requirements of law and of which the bank’s board members are
members are the following:
• Corporate Governance Committee
• Credit Committee
• Audit Committee
• Assets and Liabilities Committee
• Information Technologies Strategy and Steering Committee
• Discipline Committee
• Information Security Management Committee
Financial benefits provided to the Board of Directors
The chairman and members of the Board of Directors are paid a fee for each board meeting that they attend. The forms and amounts of such
payments are determined at a general meeting.
Activities for which support services are outsourced
Bank and credit card printing
Plastikkart Akıllı Kart İletişim Sistemleri San. ve Tic. AŞ
Eczacıbaşı E-Kart Elektronik Kart Sistemleri AŞ
Checkbook printing
Güzel Sanatlar Çek Basım Ltd Şti
Bank statement printing
Bilgi İşlem Hizmetleri AŞ
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The bank’s Profit Distribution Policy
Principles governing the bank’s profit distribution policy are governed by article 54 of the articles of association as follows:
The company’s “net profit” consists of the amount remaining after all of the company’s expenses, depreciation allowances, and sundry provisions
which have been paid or are accrued have been deducted from its income as determined at the end of the fiscal year. Net profit shall, after the
deduction of prior-year losses if any, be apportioned in the order indicated below.
1. 5% of net profit shall be set aside as a legal reserve as per Turkish Commercial Code Article 466/1.
2. From the amount remaining, a first dividend shall be set aside at a percentage and in an amount determined by the Capital Markets Board.
3. Of the remaining profit:
• A portion of up to 2% shall be set aside for members of the Board of Directors
• A portion of up to 5% shall be set aside for bank managers and white-collar workers.
1. The general assembly of shareholders is authorized to have some or all of the net profit remaining after the deduction and allocation of the
amounts in paragraphs (1), (2), and (3) above carried forward to the next year or to retain in the company it as an extraordinary reserve. The Board
of Directors may recommend that the general meeting take such action when the board deems it to be necessary. (The provisions of article 466/3
of the Turkish Commercial Code are reserved.)
2. Subject to the provisions of the Capital Markets Law, the general assembly of shareholders is authorized to have some or all of the remaining
profit distributed as dividends to shareholders in the manner indicated below or else to have some or all of it set aside as an extraordinary reserve.
The Board of Directors may recommend to the general assembly of shareholders that the remaining profit be distributed in the following ways as
the board sees fit:
a) Distribute all of it in cash.
b) Distribute all of it as shares of stock.
c) Distribute a specific percentage as cash and a specific percentage as shares of stock and retain the remainder in the company.
d) Distribute neither cash nor shares of stock and retain the entire amount in the company.
The Board of Directors shall determine the date(s) on which dividends are to be paid pursuant to this article.
Proposal to Distribute Bank Asya 2009 Year Profits
At a meeting of the Board of Directors on 18 February 2010 it was decided “that the sum remaining after the amounts that must be set aside as
required by law and the articles of association have been set aside from the net profit shown in the balance sheet dated 31 December 2009 will not
be distributed but instead will be retained as an extraordinary reserve in order to strengthen the bank’s equity resources and that this action will be
presented for shareholder approval at the annual general meeting.”
2009 Ordinary General Meeting Agenda
1. Opening the meeting and forming the presiding committee
2. Authorizing the presiding committee to sign the minutes of the meeting
3. Reading and deliberating the Board of Directors’ annual report, the statutory auditors’ report, and the independent auditor’s report for 2009
4. Examining and deliberating the balance sheet and profit & loss statement; reading and deliberating the Board of Directors profit distribution
proposal; deciding how to distribute profits
5. Approving the appointments made during the year to fill vacancies on the Board of Directors
6. Acquitting the company’s board members and statutory auditors of their fiduciary responsibilities
7. Deciding board members’ and statutory auditors salaries and entitlements
8. Authorizing the Board of Directors to choose the members of the Senior Advisory Committee and to determine their salaries payments
9. Approving the independent auditors chosen by the Board of Directors under a one-year contract for the bank’s 2010 accounts
10. Providing information about assistance and donations given during 2009
11. Reading and deliberating changes made in public disclosure policy principles within the framework of Asya Katılım Bankası AŞ’s corporate
governance principles
12. Authorizing the company’s board members to engage in the activities governed by articles 334 and 335 of the Turkish Commercial Code
13. Petitions and suggestions.
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Explanatory notes concerning the items on the 2009 Ordinary General Meeting Agenda
1. Opening the meeting and forming the presiding committee
Explanation: A president and presiding committee will be chosen to conduct the general meeting as required by the provisions of the Turkish
Commercial Code and of Ministry of Industry and Commerce regulations.
2. Authorizing the presiding committee to sign the minutes of the meeting
Explanation: As required by the provisions of the Turkish Commercial Code and of Ministry of Industry and Commerce regulations, the general
assembly will authorize the presiding committee to record decisions made at the meeting and to sign them on behalf of the entire general
assembly.
3. Reading and deliberating the Board of Directors’ annual report, the statutory auditors’ report, and the independent auditor’s report for 2009
Explanation: the Board of Directors’ annual report, the statutory auditors’ report, and the independent auditor’s report for the 1 January 2009 to
31 December 2009 fiscal year will be read and deliberated.
These reports may be obtained from the company’s headquarters and from its website located at www.bankasya.com.tr.
4. Examining and deliberating the balance sheet and profit & loss statement; reading and deliberating the Board of Directors profit distribution
proposal; deciding how to distribute profits
Explanation: The Board of Directors’ balance sheet and profit & loss statement for 2009 will be read to the general assembly, deliberated, and
voted on. The financial statements may be obtained from the company’s headquarters and from its website located at www.bankasya.com.tr. The
proposal based on the Board of Directors’ profit distribution resolution will be read and voted on by the general assembly.
5. Approving the appointments made during the year to fill vacancies on the Board of Directors
Explanation: In addition to the regular items on the bank’s agenda, appointments that were made to fill vacancies on the Board of Directors will
be submitted for approval.
6. Acquitting the company’s board members and statutory auditors of their fiduciary responsibilities
Explanation: As required by the provisions of the Turkish Commercial Code and of Ministry of Industry and Commerce regulations, the general
assembly will vote on acquitting the company’s board members and statutory auditors of their fiduciary responsibilities for the company’s activities
and transactions in 2009.
7. Deciding board members’ and statutory auditors salaries and entitlements
Explanation: As required by the provisions of the Turkish Commercial Code and of Ministry of Industry and Commerce regulations, the meeting
attendance fees to be paid to members of the Board of Directors will be determined and voted on by the general assembly.
As required by the provisions of the Turkish Commercial Code and of Ministry of Industry and Commerce regulations, the salaries to be paid to the
statutory auditors will be determined and voted on by the general assembly.
8. Authorizing the Board of Directors to choose the members of the Senior Advisory Committee and to determine their salaries payments
Explanation: A proposal authorizing the Board of Directors to choose the members of the Senior Advisory Committee and to determine their
salaries payments as per article 45 of the bank’s articles of association will be voted on by the general assembly.
9. Approving the independent auditors chosen by the Board of Directors under a one-year contract for the bank’s 2010 accounting period.
Explanation: As required by Capital Markets Board communique X:22, approval of the independent auditors selected by the Board of Directors will
be voted on by the general assembly.
10. Providing information about assistance and donations given during 2009
Explanation: As required by article 7/b of Capital Markets Board communique IV:27, the general meeting must be informed about any donations
that were made during the reporting year. This item is not voted on by the general assembly. It is included in the agenda only for the purpose of
informing the general assembly.
11. Reading and deliberating changes made in public disclosure policy principles within the framework of Asya Katılım Bankası AŞ’s corporate
governance principles
Explanation: Changes made in the bank’s public disclosure policy under Board of Directors resolution 1452 dated 25 June 2009 will read and
deliberated.
12. Authorizing the company’s board members to engage in the activities governed by articles 334 and 335 of the Turkish Commercial Code
Explanation: The issue of authorizing and allowing members of the Board of Directors to do business with and compete against the company
under the rules of Turkish Commercial Code articles 334 and 335 will be voted on. Under Turkish Commercial Code articles 334 and 335, board
members may not compete against or do business with their own company except with general assembly approval. The ability of board members
to engage in such actions will be voted on by the general assembly.
13. Petitions and suggestions.
Assessment on Financial Information and Risk Management
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Concise Statutory Auditors Report
5-Year Summary Financial Information Including the Reporting Period
Financial Standing, Profitability, and Debt Service Ability
Assessment of the Audit Committee’s Internal Systems and Their Operation
Information About Internal System Unit Managersr
Risk Management Policies Being Implemented According to Risk Types
Credit Ratings and Reports
Independent Auditors’ Report for the Year January 1, 2009 – December 31, 2009
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Concise Internal Auditors Report
Company name Headquarters
Capital
Principal business activity
Asya Katılım Bankası AŞ
İstanbul
TRY 900,000,000.00
All activities permitted to participation banks
Names, terms of office, and company shareholder
/employee internal auditors
Number of Board of Directors meetings attended and number of internal auditors’ meetings held
Ali Akbulut, Atif Bilgin, İrfan Hacıosmanoğlu.
Three-year terms. Company shareholders
At least two of the board meetings held every month were attended.
The internal auditors also convened in committee on such days.
Scope, dates, and results of examinations performed The books of account were examined and checked on 18 June 2009 and 19 November 2009.
on the company’s accounts, books, and documents It was ascertained that cash items were in accordance with book of account entries.
Charges or complaints of improprieties received No charges or complaints of improprieties were referred to us in 2009.
and the action taken
We have examined the accounts and transactions of the firm of Asya Katılım Bankası Anonim Şirketi for the period 1 January 2009 to 31 December
2009 for compliance with the requirements of the Turkish Commercial Law, the company’s articles of association, relevant laws and regulations,
and generally accepted accounting principles and standards. In our opinion the income statement for the period 1 January 2009 to 31 December
2009 accurately and truly reflects the results of business activities during the same period and the proposed distribution of profits is in compliance
with the requirements of law and with the company’s articles of association.
In our opinion the enclosed balance sheet drawn up as of 31 December 2009, the contents of which we endorse, accurately reflects the true
financial standing of the company on that date and we hereby recommend that the balance sheet and income statement be approved and that
the members of the Board of Directors be acquitted of their fiduciary responsibilities.
The Internal Auditors
Ali Akbulut
A
tif Bilginİrfan Hacıosmanoğlu Bank Asya Annual Report 2009
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5-Year Summary Financial Information Including the Reporting Period
SELECTED ASSETS ITEMS
(TRY thousand)
Liquid Assets
Loans
Fixed Assets Total Assets
2005
382,656
2,090,521
61,499
2,610,406
2006
939,645
3,060,181
75,027
4,179,189
2007
1,382,702
4,609,665
115,727
6,260,048
2008
1,247,486
6,381,322
232,958
8,108,829
SELECTED LIABILITIES ITEMS
(TRY thousand)
2005
2006
2007
2008
Deposits
2,148,595
3,200,655
4,697,750
5,842,821
Borrowings
14,307
126,696
312,921
457,552
296,168
632,519
853,856
1,403,692
-Paid-in Capital
240,000
300,000
300,000
900,000
-Net Period Profit
92,681
146,351
221,337
246,529
Total Liabilities
2,610,406
4,179,189
6,260,048
8,108,829
INCOME STATEMENT
(TRY thousand)
2005
2006
2007
2008
Profit Share Income
327,468
510,991
805,275
1,068,206
Profit Share Expenses
168,479
224,155
388,117
566,816
Expenses Other than Profit Share Income
109,768
257,592
244,773
357,294
Other than Profit Share Expenses
157,237
260,046
389,030
546,780
Income before Taxation
111,520
196,250
272,901
311,904
Tax Provisions
(8,061)
(49,899)
(51,564)
(65,375)
Net Period Profit
103,459
146,351
221,337
246,529
2009
2,572,230
8,355,346
320,118
11,608,955
2009
9,136,578
191,461
1,707,894
900,000
301,281
11,608,955
2009
1,305,652
705,805
454,757
676,212
378,392
(77,111)
301,281
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Financial Standing, Profitability, and Debt Service Ability
During 2009 Bank Asya continued to be a leader among participation banks in terms of total assets, cash loans, non-cash credit, deposits, and net
profit. Its posted rates of growth in total assets, cash loans, and deposits were above banking sector averages. Net profit, which was on the order of
TRY 301 million, was also higher than that secured by any other participation bank.
Bank Asya’s total assets increased 43% year-on and reached TRY 11.6 billion. The growth in the bank’s assets stemmed primarily from its loans.
Loans were up 31% year-on and accounted for 72% of the bank’s total assets.
Deposits once again remained Bank Asya’s most important source of funding in 2009. The growth in total deposits last year increased their share of
the bank’s total liabilities from 72% in 2008 to 79% in 2009. This ratio is above the sector average, which was 71% as of December 2009. Deposits,
which amounted to TRY 5.8 billion in 2008, increased 56% and reached TRY 9.1 billion last year. The bank’s broad deposit base is indicative of a
favorable position from the standpoint of the bank’s financing of its assets. Bank Asya’s strong capital structure together with its profitability
resulted in increasing the bank’s equity 22% to TRY 1.7 billion in the year to end-2009.
Net profit, which amounted to TRY 247 million in 2008, increased 22% in 2009 and reached TRY 301 million. This result makes Bank Asya Turkey’s
most profitable participation bank for the third year in a row. Dividend income received from having lent out the additional resources resulting
from the 56% rise in deposits together with commission earnings on non-cash credit were the two main sources of the bank’s profitability. Bank
Asya’s profit share income was up 22% to TRY 1.3 billion while its earnings on its loans also increased 25% to about TRY 1.2 billion. Bank Asya’s net
profit share income last year amounted to TRY 600 million.
As a result of greater importance given to liquidity in order to protect itself against the effects of the global economic crisis in 2009, the share
of liquid assets among the bank’s total assets rose from 15% to 22%. This increase had a positive impact on the bank’s debt service ability.
Furthermore the bank’s deposits, which are the most important source of its funding, are broadly-based and strongly structured and they have
average terms that are high compared with sector norms. This situation also contributes favorably to the bank’s ability to service its short-term
debt.
The Audit Committee regularly met with personnel of the Board of Inspectors, the Department of Internal Control, and the Risk Management
Department in order to keep a close watch on the activities of those units, all of which report directly to it. An “Audit Committee Activity Report”
in which are reported the auditing and risk management results of efforts to achieve an effective internal audit and risk management system
throughout the bank is submitted to the Board of Directors at regular intervals.
Internal auditing and risk management findings received from internal system units and reported by the committee to the Board of Directors are
assessed by the latter together with the senior managers concerned. Guidance is provided as needed to mitigate risks and to improve processes and
practices.
The committee also performs the statutorily mandated duties of selecting independent auditing, support service, evaluation, and rating
organizations and of overseeing such organizations’ relationships with the bank. Under this heading, the committee met with officers of the
independent auditors and during these meetings the independence of the independent auditors in their relationship with the bank as well as the
adequacy of the resources allocated for the bank’s independent auditing and the results of such auditing were all evaluated.
83
Board of Inspectors
The Board of Inspectors conducts risk-focused inspections within the framework of international standards at the bank’s headquarters units,
branches, and consolidated subsidiaries and it provides the Board of Directors with assurances and advice as needed on the issues of carrying out
the bank’s activities in line with the requirements of laws and regulations and with the bank’s strategies, policies, principles, and objectives.
Internal auditing activities are carried out at all headquarters units, branches, and consolidated subsidiaries in accordance with an annual auditing
plan that is approved by the Board of Directors. The Board of Inspectors reports the results of its activities at quarterly intervals to the Board of
Directors through the Audit Committee.
Under the heading of branch inspections last year, inspections were carried out at 83 branches in which matters pertaining to credit risks,
operational risks, and organization were looked into. The results of these inspections along with risk-mitigating recommendations were reported to
appropriate units and senior managers.
Under the heading of process inspections conducted at headquarters units, eight primary business processes (including information system and risk
management systems) were examined and the results were reported to appropriate units and senior managers.
Under the heading of inspections conducted at consolidated subsidiaries, inspections took place at two subsidiaries and the results were reported
to appropriate units and senior managers.
In addition to the activities described above, the Board of Inspectors also engaged in examinations and investigations as needed both at the bank
and among its consolidated subsidiaries.
Based on the results of its inspection activities, the board performs risk analyses, makes recommendations, and provides advice on administrative,
technological, fiscal, legal, and organizational issues in order to mitigate risk within the scope of its inspections.
Department of Internal Control
The internal control system is designed to be an integral part of day-to-day activities with the fundamental aim of reducing to acceptable levels
the risks to which the bank is exposed on account of its assets and the activities in which it engages. The internal control system, of which every
employee of the bank at every level is a part, seeks to ensure that the protection of the bank’s assets, the effectiveness and productivity of the
bank’s activities, the reliability of the bank’s accounting and financial reporting systems, and the conduct of all of the bank’s activities are in
compliance with internal and external regulatory requirements and with the bank’s policies.
The Department of Internal Control reports to the Board of Directors and it is responsible for the design and management of the bank’s internal
control system and internal control activities in accordance with the requirements of the Banks Act and of the Internal Systems Regulations
associated therewith. In order to make it possible for it to fulfill these responsibilities more effectively, the organizational structure of the
Department of Internal Control was redesigned in 2009.
With the aims of carrying out, in cooperation with the senior managers of the units involved based on the particulars of all the activities in which
the bank engages, activities necessary to design an internal control system that must be set up in such a way as to encompass the bank’s branches,
headquarters units, and consolidated subsidiaries and all of their activities and of determining how these functions are to be performed, during
2009 the department worked, along with other units involved, to determine the procedures and existing controls involved in all of the activities
in which the bank engages and to schematize work flows. Work is continuing at this time to identify existing controls, to evaluate controls, and to
design newer and more effective controls.
Under the heading of internal control activities, two units’ processes were reviewed and internal control checks were carried out at branches 295
times. In order to make distance control more effective and productive, units’ and branches’ transactions were examined through a centralized
control system external to both while checks were carried out in light of scenarios that had been formulated using computer programs (ACL)
to determine erroneous/irregular transactions and instances of misconduct. Under the heading of compliance control activities, ten compliance
checks were performed concerning new products, services, and practices during 2009. Under the heading of information system controls, 32 basic
and 100 secondary IT processes and their existing controls were identified and schematized. Existing controls were also reviewed in light of COBIT
requirements.
Risk Management Department
The Risk Management Department is responsible for the deployment of the risk management system that the bank has set up to detect all risks
arising from the bank’s activities and for ensuring that such risks are managed in compliance with the requirements of laws and regulations. Policies and procedures that will make it possible for this system to operate effectively throughout the bank have been defined. Work is currently in
progress on quantifying, controlling, and reporting risks.
Bank Asya’s internal control system units are being supported with qualified personnel in order to meet the increased need for auditing arising
from the rapid changes and growth that have begun to take place in its banking activities and to achieve a function-based risk management and
internal auditing system.
84
Information About Internal System Unit Managersr
Length of
Professional
Name
service
Areas of responsibility
Education background
experience
Hilali YILDIRIM
49 months
Board of Inspectors
Master’s (Banking) / Bachelor’s (Business Administration) 15 years
Mahmut YALÇIN
14 months
Department of Internal Control Master’s (Human Resources) / Bachelor’s
(Business Administration)
10 years
Mehmet Kamil TÜMER 50 months
Risk Management Department Bachelor’s (Business Administration)
29 years
85
Bank Asya conducts its risk management activities within the framework of credit risk, market risk, liquidity risk, operational risk, reputational risk,
and strategy risk management policies that it has established in order to conduct its banking activities in accordance with the requirements of
laws, regulations, and administrative provisions. Through such policies, the bank ensures that the stages of identifying the possible risks to which
the bank is exposed or may be exposed in its risk management processes and of quantifying, monitoring, controlling, and reporting such risks are
properly managed and also that, deploying a variety of measures and techniques, risks are reduced and risk management resources are transferred
from areas where risks are low to those where risks are high.
Credit risk
Management of credit risk at Bank Asya is fundamentally rooted in assessing all of the credit risk arising from the bank’s lending activities. The
most important element of this process is determining customer and counterparty limits and in order to achieve that, the bank complies with
prescribed policies pertaining to “Lending and Credit Risk Management”. In addition, early warning mechanisms that are focused on spotting in
advance any credit risks to which the bank may be exposed make it possible to continuously review the financial circumstances, credit ratings, and
credit needs of borrowers with heightened credit risk and to reconsider their credit worthiness and limits as appropriate.
Bank Asya classifies its loans in two categories–“On-balance sheet” and “Off-balance sheet”–and it determines portfolio particulars, sectoral/
regional/group concentrations, and performances accordingly. On the basis of risk/return balances, collateral worthiness, and bank asset quality,
a determination is made as to whether the provisions set aside for loans are adequate or not. Scenario analyses are formulated in order to more
proactively manage credit risk exposure. Volatilities in credit risk and their impact on the bank’s financial indicators are regularly reported to those
concerned.
A system that makes it possible for the bank’s corporate and commercial loans to be rated intrinsically is used in decision mechanisms. This system
has been structured so as to facilitate integration with statistical models that allow credit risk to be quantified and managed. The rating system has
been made particularly sensitive to existing and potential impairments in a loan’s structure and this is what permits it to fulfill its early warning
and risk management functions. Financial situation analyses of borrowers whose loans have become subject to legal action or are placed under
close watch are carried out in coordination with all units concerned. Use is made of scorecard models developed by an international firm in order
to manage the risks to which the bank is exposed on account of its retail lending and credit card portfolio.
Market risk
Market risk is quantified and assessed in accordance with procedures that comply with the requirements of law and international regulations and
with Bank Asya’s “Market Risk Management Policy”. The bank makes use of the internationally recognized “Value at Risk” (VaR) method, inasmuch
as it conforms well to Bank Asya’s own market activities. VaR is an expression of the likelihood, at a specified confidence level, of a loss that the
bank’s portfolio may suffer due to volatilities that may occur in risk factors within a specified period of time. Bank Asya’s VaR model has been
developed in-house and is employed simultaneously and in conjunction with the “Standardized Approach”, whose use is prescribed by authorities.
The amount of market risk to which the bank is exposed based on these calculations is reported daily to the Board of Directors as are the results
of backtests that are conducted (also on a day-to-day basis) to determine the model’s reliability. By means of scenario analyses and stress tests
that are performed using reverse changes in the bank’s own portfolio and in the market prices that are taken into account, the value of the bank’s
portfolio is reconsidered under existing and potential market conditions. The effects that the results of scenario analyses and stress tests may have
on Bank Asya’s standard capital adequacy ratio are also separately analyzed and reported.
Liquidity risk
Reports which have been prepared in line with the requirements of the Regulations concerning the measurement and assessment of bank’s
liquidity adequacy published by the Banking Regulation and Supervision Agency are examined by the Risk Management Department, the Treasury
Unit, and senior management. Measures are taken as needed by the Assets and Liabilities Committee to ensure that the ratios which are reported
in this way remain within legally prescribed limits.
Potential mismatches in the terms of the bank’s asset and liability items and percentages based on maturity segments are kept track of by means
of day-to-day liquidity gap analyses.
The bank has formulated a “Liquidity Emergency Action Plan” whose aim is to deal appropriately with any liquidity shortages from which it may
suffer in the face of such situations as impairment of asset quality, an increase in non-performing loans, or unexpected withdrawals of deposits.
86
Operational risk
Bank Asya began reporting its operational risks using the “Basic Indicator Approach” as of 1 June 2007. The impact of the amounts exposed to
such risks on the Capital Adequacy Standard Ratio are taken into account by means of scenario analyses based on changes in the years since then.
The amounts exposed to operational risk are also calculated using the Standard and Alternative Standard Approaches specified by the Banking
Regulation and Supervision Agency. It is expected that these approaches will also be used in the bank’s statutorily mandated reports once changes
in the regulatory framework have been made.
Bank Asya accumulates its potential operational risk losses in a format which complies with a “risk catalogue” that is based on event classifications.
Data about actual losses is used as the basis for creating advanced statistical models that are being planned. Action plans are also being formulated
to prevent the recurrence of instances of operational risk whose financial impact is unusually severe.
Business Continuity Management is an integrated management process that identifies critical situations that the bank may encounter and their
potential impact on its business activities should they actually occur. Bank Asya’s Business Continuity and Disaster Plan was put into effect in 2007
as a result of a project undertaken jointly with a consultancy that specializes in such matters.
Other risks
Due to the extremely volatile nature of events at the global level in 2009, banks had to be more sensitive than ever to interpreting macroeconomic
indicators. In line with this, efforts at Bank Asya focused on correctly identifying and understanding such indicators. To a significant degree, these
efforts were successful and the Board of Directors was kept regularly informed of developments and trends as they unfolded.
In addition to managing its financial risks, Bank Asya also keeps a close watch on the possible effects of political, legislative, and global
developments which may cause economic and/or financial sector volatilities even though they are not strictly financial themselves. For this
purpose it makes use of extrinsic risk reports that are prepared by the Risk Management Department.
Risk management in subsidiaries whose results are subject to consolidation
Bank Asya’s standard ratio calculations of its risk exposures and legal liabilities are made on a consolidated basis. This means that the risks to which
the bank is exposed on account of the bank’s shareholding interests in its subsidiaries are also directly monitored and managed and the functions
of the bank’s own internal systems are complied with in its subsidiaries as well.
Basel II compliance
The Basel II International Convergence of Capital Measurement and Capital Standards Project got underway in Turkey in May 2005 with the
publication of a draft roadmap showing the stages of implementation of the Basel II accord. According to that map, implementation of the
standards was to have begun as of January 2008 but that date was later changed to the beginning of 2009 and has since been postponed again.
Bank Asya regards Basel II as the foundation for a comprehensive risk management culture that goes far beyond capital adequacy calculation
issues and for this reason, the bank is continuing with the Basel II compliance projects and activities that it initiated in previous years.
Credit Ratings and Reports
FITCH RATINGS
Foreign Currency
Long Term
B
Short Term
B
Outlook
Stable
Turkish Lira
Long Term
B
Short Term
B
Outlook
Stable
National
Long Term
BBB+(tur)
Outlook
Stable
Individual Rating
D
Support Points
5
The information is taken from the Fitch Ratings Report as of November 9, 2009.
MOODY’S
Financial Strength Outlook
Foreign Currency
Long Term
Short Term
Outlook
Turkish Lira
Long Term
Short Term
Outlook
National
Long Term
Short Term
D
Stable
B1/NP
B1/NP
Stable
Ba1/NP
Ba1/NP
Stable
A1+r
TR-1
The information is taken from the Moody’s Investor Service report as of August 19, 2009.
JCR EURASIA
Foreign Currency
Long Term
Short Term
Outlook
International Foreign Currency
Long Term
Short Term
Outlook
National
Long Term
Short Term
Outlook
Stand Alone
Support Points
The information is taken from the JCR Eurasia Rating report as of May 21, 2009.
BBB
Stable
BBB
Stable
A- (Trk)
A- 1(Trk)
Stable
BC
3
87
88
To the Board of Directors of
Istanbul
We have audited the accompanying balance sheet of Asya Katılım Bankası A.Ş. as at December 31, 2009 and the related statements of income, cash
flows and changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements:
The Board of Directors of the Bank is responsible for the preparation and fair presentation of the financial statements in accordance with the
regulation on “Procedures and Principles Regarding Banks’ Accounting Practices And Maintaining Documents” published in the Official Gazette
dated November 1, 2006 and numbered 26333 and Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”) and
other regulations, circulars, communiqués and pronouncements in respect of accounting and financial reporting made by Banking Regulation and
Supervision Agency (“BRSA”). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation
and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility:
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the
regulation on “Licensing and Operations of Audit Firms in Banking” published in the Official Gazette No: 26333 on November 1, 2006 and the
International Standards on Auditing. We planned and performed our audit to obtain reasonable assurance whether the financial statements are
free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the consideration of the effectiveness of internal
control and appropriateness of accounting policies applied relevant to the entity’s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Independent Auditors’ Opinion:
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Asya Katılım Bankası A.Ş. as
at December 31, 2009 and the results of its operations and its cash flows for the year then ended in accordance with the prevailing accounting
principles and standards set out as per Article 37 of the Banking Act No: 5411 and other regulations, circulars and communiqués in respect of
accounting and financial reporting and pronouncements made by Banking Regulation and Supervision Agency (“BRSA”).
Additional paragraph for the English translation:
The effect of the differences between the accounting principles summarized in Section 3 and the accounting principles generally accepted in
countries in which the accompanying financial statements are to be distributed and International Financial Reporting Standards (IFRS) have not
been quantified and reflected in the accompanying financial statements. The accounting principles used in the preparation of the accompanying
financial statements differ materially from IFRS. Accordingly, the accompanying financial statements are not intended to present the Bank’s
financial position and results of its operations in accordance with accounting principles generally accepted in such countries of users of the
financial statements and IFRS.
DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş.
Member of DELOITTE TOUCHE TOHMATSU
Sibel Türker
Partner
Istanbul, February 18, 2010
89
The Unconsolidated Financial Report of Asya Katılım Bankası A.Ş.
for the Year Ended December 31, 2009
THE UNCONSOLIDATED FINANCIAL REPORT OF ASYA KATILIM BANKASI A.Ş.
FOR THE YEAR ENDED DECEMBER 31, 2009
Address of the Headquarter of the Bank
Phone and Fax Numbers of the Bank
Website of the Bank Electronic Mail Address to Contact
: Küçüksu Caddesi Akçakoca Sokak No:6 34768 Ü
mraniye/İSTANBUL
: 0 216 633 50 00/0 216 633 50 24
: www.bankasya.com.tr
: [email protected]
The unconsolidated financial report designed by the Banking Regulation and Supervision Agency in line with Communiqué on “Financial
Statements to be Publicly Announced and the Related Policies and Disclosures” consists of the sections listed below:
• GENERAL INFORMATION ABOUT THE BANK
• UNCONSOLIDATED FINANCIAL STATEMENTS OF THE BANK
• EXPLANATIONS ON THE CORRESPONDING ACCOUNTING POLICIES APPLIED IN THE RELATED PERIOD
• INFORMATION ON FINANCIAL STRUCTURE OF THE BANK
• EXPLANATORY DISCLOSURES AND FOOTNOTES ON UNCONSOLIDATED FINANCIAL STATEMENTS
• OTHER EXPLANATIONS
• INDEPENDENT AUDITOR’S REPORT
The unconsolidated financial statements and the explanatory footnotes and disclosures, unless otherwise indicated, are prepared in Thousands
of Turkish Lira, in accordance with the Communiqué on Banks’ Accounting Practice and Maintaining Documents, Turkish Accounting Standards,
Turkish Financial Reporting Standards, related communiqués and the Banks’ records, have been independently audited and presented as attached.
February 18, 2010
Behçet Akyar
Cemil Özdemir
Member of the Board
and General Manager
Tacettin Negiş
İsmail Erol İşbilen
Member of the Board and Member of the Board and
Member of the Audit Committee Member of the Audit Committee
Yusuf İzzettin İmre
Assistant General Manager
Responsible of Financial Reporting
Kamil Yılmaz
Manager In Charge of
Financial Reporting
Responsible personnel for the questions that can be raised on the financial statements:
Name-Surname/Title:Mehmet ARSLAN/Assistant Manager in Charge of Budgeting and Financial Controlling
Telephone Number:
0 216 633 54 91
Fax Number:
0 216 633 50 24
90
SECTION ONE
GENERAL INFORMATION
I.
Incorporation Date, Initial Status and Subsequent Changes in the Existing Status of the Bank II.
Shareholding Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management of the
Bank and Disclosures on any Related Changes in the Current Year, if any
III.
Explanations Regarding the Chairman and the Members of Board of Directors, Audit Committee, General Manager and
Assistants and Shares of the Bank They Possess
IV. Individuals and Institutions that have Qualified Shares in the Bank
V.
Summary on the Functions and Areas of Activity of the Bank
Page
92
92
92
93
93
SECTION TWO
THE UNCONSOLIDATED FINANCIAL STATEMENTS
I. Balance Sheet
II.
Statement of Off-Balance Sheet Contingencies and Commitments
III.
Statement of Income
IV. Statement of Profit and Loss Accounted under Equity
V.
Statement of Changes in Shareholders’ Equity
VI. Statement of Cash Flows
VII. Profit Distribution
94
96
98
99
100
101
102
SECTION THREE
ACCOUNTING PRINCIPLES
I. Basis of Presentation
II.
Explanations on Usage Strategy of Financial Assets and Foreign Currency Transactions
III.
Explanations on Forward and Option Contracts and Derivative Instruments
IV.
Explanations on Profit Share Income and Expenses
V.
Explanations on Fees and Commission Income and Expenses
VI. Explanations on Financial Assets
VII. Explanations on Impairment of Financial Assets
VIII. Explanations on Offsetting Financial Assets and Liabilities
IX.
Explanations on Sales and Repurchase Agreements and Lending of Securities
X.
Explanations on Assets Held for Sale, Discontinued Operations and Liabilities Related to Those Assets
XI.
Explanations on Goodwill and Other Intangible Assets
XII. Explanations on Tangible Fixed Assets
XIII. Explanations on Leasing Transactions
XIV. Explanations on Provisions and Contingent Liabilities
XV. Explanations on Liabilities for Employee Benefits
XVI. Explanations on Taxation
XVII. Additional Disclosures on Borrowings
XVIII. Explanations on Exported Share Certificates
XIX. Explanations on Acceptances
XX. Explanations on Government Incentives
XXI. Explanations on Reporting According to Segmentation
XXII. Explanations on Other Matters
104
104
104
104
105
105
106
106
107
107
107
108
108
108
108
109
109
109
109
109
110
110
91
SECTION FOUR
INFORMATION ON FINANCIAL STRUCTURE
I.
Explanations Related to Capital Adequacy Standard Ratio
II. Explanations Related to Credit Risk
III. Explanations Related to Market Risk
IV.
Explanations Related to Operational Risk
V. Explanations Related to Currency Risk
VI.
Explanations Related to Interest Rate Risk
VII. Explanations Related to Liquidity Risk
VIII. Presentation of Financial Assets and Liabilities at Fair Value
IX.
Explanations Related to Transactions Carried out on Behalf of Other Parties and Fiduciary Assets
Page
111
113
116
117
117
120
120
122
124
SECTION FIVE
EXPLANATIONS AND DISCLOSURES ON THE UNCONSOLIDATED FINANCIAL STATEMENTS
I. Explanations and Disclosures Related to the Assets
1.
Information on Cash and Balances with the Central Bank of Turkish Republic
II.
Explanations and Disclosures Related to the Liabilities
III.
Explanations and Disclosures Related to the Off-Balance Sheet Contingencies and Commitments
IV.
Explanations and Disclosures Related to the Income Statement
V.
Explanations and Disclosures Related to the Statements of Shareholders’ Equity Movement
VI. Explanations and Disclosures Related to Statement of Cash Flows
VII. Explanations on the Risk Group of the Bank
VIII. Explanations on the Bank’s Domestic Branches, Agencies and Branches Abroad and Off-shore Branches
124
124
140
147
152
156
157
158
159
SECTION SIX
OTHER EXPLANATIONS I. Other Disclosures:
160
SECTION SEVEN
INDEPENDENT AUDITOR’S REPORT
I.
Explanations on the Independent Auditor’s Report
II.
Other Footnotes and Explanations Prepared by the Independent Auditors
160
160
160
92
Notes and Disclosures to the Financial Statements for the Year Ended December 31, 2009
(Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SECTION ONE
GENERAL INFORMATION
I.Incorporation Date, Initial Status and Subsequent Changes in the Existing Status of the Bank
Incorporation of Asya Katılım Bankası A.Ş. (“the Bank”) is permitted with the decision of the Council of Ministers No: 96/8041 on April 11, 1996
as published in the Official Gazette dated April 25, 1996. The Bank was registered on September 20, 1996 and “the Articles of Association” was
published in the Trade Registry Gazette on September 25, 1996. The Decision regarding the change in the title of the Bank was settled in the
Extraordinary General Board of Directors’ meeting dated December 22, 2005 and the title was changed from Asya Finans Kurumu A.Ş. into Asya
Katılım Bankası A.Ş. and it was published in the Trade Registry Gazette on December 26, 2005.
II.Shareholding Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management of the Bank and
Disclosures on any Related Changes in the Current Year, if any
The Bank has no shareholders having more than 10% shareholding or direct or indirect, joint or individual control over the management of the
Bank. The Bank is not included in any group.
III.Explanations Regarding the Chairman and the Members of Board of Directors, Audit Committee, General Manager and Assistants
and Shares of the Bank They Possess
Title
Name
Area of Responsibility
Ownership Percentage %
Chairman of the Board of Directors Tahsin TEKOĞLU (**)
Chairman of the Board of Directors and Member of
the Audit Committee
0,0050
Member of the Board of Directors
Cemil ÖZDEMİR (*)
Vice Chairman of the Board of Directors and Member of
the Audit Committee
0,0026
Tacettin NEGIŞ (***)
0,2467
Salih SARIGÜL Member of the Board of Directors
0,4983
Ahmet ÇELİK
0,4467
Murat SUNGURLU
0,1073
General Manager
Ünal KABACA (*)
Member of the Board and General Manager
0,0267
Assistant General Managers
Ayhan KESER
Corporate/Commercial Loans, Business Banking, Treasury,
Financial Institutions and Public Relations
0,0069
Mustafa BÜYÜKATEŞ
Retail Sales Management, Retail Product Management, ADC
(Alternative Distribution Channels) Marketing and Consumer Loans
Financial Affairs, Credit Allocation and Financial Analysis and Advertising Buket GEREÇCİ
Banking Operations
Dr. Mahmut DEMİRKAN
Human Resources, Education, Administrative, Purchase and
Organization and Quality Management Ali TUĞLU
Information Technologies
Group Manager
Salim KÖSE
Law, Credit and Risk Monitoring
Auditors
Ali AKBULUT
Auditor
0,0002
Atif BİLGİN Auditor
0,3057
İrfan HACIOSMANOĞLU
Auditor
2,0068
(*) The Board member and General Manager Mr. Ünal Kabaca has resigned from his position as of January 28, 2010. Vice-Chairman of the Board Mr.
Cemil OZDEMİR has been appointed as the new General Manager and Mr. Behçet AKYER has been assigned as the new board member.
(**)Tahsin TEKOĞLU has resigned from chairman position and the board of directors membership on February 12, 2010. Afterwards, Behçet AKYER
has been assigned as the Chairman of the Board of Directors and Ismail Erol IŞBİLEN has been assigned as member of both the Board of Directors
and the Audit Committee.
(***) Tacettin NEGİŞ has been assigned as the Audit Committee member as of February 12, 2010.
93
IV. Individuals and Institutions that have Qualified Shares in the Bank
The Bank’s capital, amounting to TRY 900.000.000, consists of qualified shares, amounting to TRY 360.000.000 and qualified shareholders are listed
below.
Name/Commercial Name
ORTADOĞU TEKSTİL TİC. SAN. A.Ş.
FORUM İNŞAAT DEKORASYON TURİZM SAN. VE TİC. A.Ş.
ABDULKADİR KONUKOĞLU
BJ TEKSTİL TİCARET VE SANAYİ A.Ş.
BİRİM BİRLEŞİK İNŞAATÇILIK MÜMESSİLLİK SAN. VE TİC. A.Ş.
SERRA TURİZM LTD.ŞTİ.
OSMAN CAN PEHLİVAN
HASAN SAYIN
NEGİŞ GİYİM İMALAT VE İHRACAT A.Ş.
İBRAHİM SAYIN
MUAMMER İHSAN KALKAVAN
İRFAN HACIOSMANOĞLU
AYDAN AYDIN SAĞLIK
FEHİM ARICI
YAVUZ EROĞLU
ABDURRAHMAN KOPUZ
DİĞER
Total
Share Amount
37.992
22.565
20.088
18.000
17.783
15.000
14.400
13.430
13.142
12.679
7.456
6.861
5.952
5.580
5.220
3.960
139.892
360.000
Share Ratio
10,55
6,27
5,58
5,00
4,94
4,17
4,00
3,73
3,65
3,52
2,07
1,91
1,65
1,55
1,45
1,10
38,86
100,00
Paid Shares Unpaid Shares
37.992
22.565
20.088
18.000
17.783
15.000
14.400
13.430
13.142
12.679
7.456
6.861
5.952
5.580
5.220
3.960
139.892
360.000
-
V.Summary on the Functions and Areas of Activity of the Bank
The Bank operates in accordance with the principles of interest-free banking as a participation bank by collecting funds through current accounts
and profit sharing accounts, and lending such funds through production support, finance lease and profit/loss sharing partnership and shared
investments.
The Bank has two ways of collecting funds; current accounts and profit sharing accounts. The Bank classifies current accounts and profit sharing
accounts in accordance with their maturities in its accounting system. Profit sharing accounts are classified into five different maturity groups; up
to one month, up to three months (three months included), up to six months (six months included), up to one year (one year included) and one
year and more than one year (one month, three months, six months and one year profit share payment).
The Bank could determine the participation rates on profit/loss sharing accounts with respect to the maturity group of TRY and foreign currency
accounts, separately under the limitation that the participation rate on loss shall not be less than 50%, for different currency type, amount and
maturity groups specifically.
The Bank constitutes specific fund pools allocated to the individually predetermined projects for financing purposes. Profit sharing accounts, which
are part of the funds collected for project financing purpose, are distinguished from others with respect to the terms, accounted separately from
the others and no transfers can be made from these accounts to any other maturity groups. Specific fund pools are liquidated at the end of the
financing period. The Bank has no specific fund pools as of December 31, 2009.
In addition to ordinary banking activities, the Bank operates as an agency on behalf of Işık Sigorta A.Ş. and intervenes stock purchase-sell
transactions on behalf of Bizim Menkul Değerler A.Ş. through its branches.
94
Consolidate Balance Sheet (Statement of Financial Position)
THOUSAND TURKISH LIRA
CURRENT PERIOD PRIOR PERIOD
Audited
Audited
ASSETS
Note
(31/12/2009)
(31/12/2008)
TRY
FC
Total
TRY
FC
Total
I.
CASH AND BALANCES WITH THE CENTRAL BANK
(1)
979.395 1.365.613 2.345.008 686.697 442.872 1.129.569
II.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (Net) (2)
-
3.889 3.889 -
30.035 30.035
2.1
Trading financial assets
-
3.889 3.889 -
30.035 30.035
2.1.1 Public sector debt securities
-
-
-
-
-
2.1.2 Share certificates
-
-
-
-
-
2.1.3 Derivative financial assets held for trading -
3.889 3.889 -
30.035 30.035
2.1.4 Other marketable securities
-
-
-
-
-
2.2
Financial assets at fair value through profit and loss
-
-
-
-
-
-
-
-
-
-
2.2.2 Share certificates -
-
-
-
-
2.2.3 Loans -
-
-
-
-
-
-
-
-
-
III.
BANKS (3)
7.951 139.067 147.018 10.058 107.859 117.917
IV.
MONEY MARKET PLACEMENTS
-
-
-
-
-
V.
FINANCIAL ASSETS AVAILABLE FOR SALE (Net)
(4)
80.204 -
80.204 -
-
5.1
Share certificates 93 -
93 -
-
5.2
Public sector debt securities -
-
-
-
-
5.3
Other marketable securities 80.111 -
80.111 -
-
VI.
LOANS AND RECEIVABLES
(5)
7.563.752 632.923 8.196.675 5.875.657 271.989 6.147.646
6.1
Loans and receivables
7.430.475 632.281 8.062.756 5.748.814 270.670 6.019.484
6.1.1. Loans to risk group of the Bank
267.900 5.134 273.034 142.643 9.597 152.240
6.1.2. Public sector debt securities -
-
-
-
-
6.1.3. Other
7.162.575 627.147 7.789.722 5.606.171 261.073 5.867.244
6.2
Non-performing loans
454.360 1.850 456.210 322.795 1.953 324.748
6.3
Specific provisions (-) (321.083)
(1.208)
(322.291)
(195.952)
(634)
(196.586)
VII.
HELD TO MATURITY INVESTMENTS (Net)
(6)
76.460 -
76.460 -
-
VIII. INVESTMENTS IN ASSOCIATES (Net)
(7)
45.063 -
45.063 23.975 -
23.975
8.1
Accounted for under equity method -
-
-
-
-
8.2
Unconsolidated
45.063 -
45.063 23.975 -
23.975
8.2.1 Financial associates -
-
-
-
-
8.2.2 Non-financial associates 45.063 -
45.063 23.975 -
23.975
IX.
INVESTMENTS IN SUBSIDIARIES (Net) (8)
139.810 -
139.810 138.094 -
138.094
9.1
Unconsolidated financial subsidiaries
82.858 -
82.858 43.285 -
43.285
9.2
Unconsolidated non-financial subsidiaries 56.952 -
56.952 94.809 -
94.809
X.
ENTITIES UNDER COMMON CONTROL (Net) (9)
-
-
-
-
-
10.1 Consolidated under equity method -
-
-
-
-
10.2 Unconsolidated -
-
-
-
-
10.2.1 Financial subsidiaries -
-
-
-
-
10.2.2 Non-financial subsidiaries -
-
-
-
-
XI.
FINANCE LEASE RECEIVABLES
(10)
124.807 33.864 158.671 233.676 -
233.676
11.1 Finance lease receivables 141.774 38.916 180.690 264.791 -
264.791
11.2 Operating lease receivables
-
-
-
-
-
11.3 Other
-
-
-
-
-
11.4 Unearned income (-) (16.967)
(5.052)
(22.019)
(31.115)
-
(31.115)
XII.
DERIVATIVE FINANCIAL ASSETS FOR HEDGING PURPOSES (11)
-
-
-
-
-
12.1 Fair value hedge -
-
-
-
-
12.2 Cash flow hedge -
-
-
-
-
12.3 Hedge of net investment risks in foreign operations
-
-
-
-
-
XIII. TANGIBLE ASSETS (Net) (12)
309.894 -
309.894 226.626 -
226.626
XIV. INTANGIBLE ASSETS (Net) (13)
10.224 -
10.224 6.332 -
6.332
14.1 Goodwill -
-
-
-
-
14.2 Other 10.224 -
10.224 6.332 -
6.332
XV. INVESTMENT PROPERTY (Net) (14)
-
-
-
-
-
XVI. TAX ASSET (15)
4.754 -
4.754 -
-
16.1 Current tax asset -
-
-
-
-
16.2 Deferred tax asset
4.754 -
4.754 -
-
XVII. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net)
(16)
9.196 -
9.196 24.100 -
24.100
17.1 Held for Sale
9.196 -
9.196 24.100 -
24.100
17.2 Discontinued Operations
-
-
-
-
-
XVIII. OTHER ASSETS (17)
81.862 227 82.089 29.300 1.559 30.859
TOTAL ASSETS
9.433.372 2.175.583 11.608.955 7.254.515 854.314 8.108.829
95
Audited
Audited
LIABILITIES AND EQUITY
Note
(31/12/2009)
(31/12/2008)
TRY
FC
Total
TRY
FC
Total
I.
FUND COLLECTED
(1)
5.979.825 3.156.753 9.136.578 3.603.487 2.239.334 5.842.821
1.1 Fund from risk group of the Bank
99.744 34.999 134.743 67.967 57.410 125.377
1.2
Other
5.880.081 3.121.754 9.001.835 3.535.520 2.181.924 5.717.444
II.
DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING (2)
-
155 155 -
-
III.
FUNDS BORROWED (3)
-
191.461 191.461 -
457.552 457.552
IV.
MONEY MARKET BALANCES -
-
-
-
-
V.
MARKETABLE SECURITIES ISSUED (NET)
-
-
-
-
-
VI.
SUNDRY CREDITORS 198.910 2.234 201.144 148.364 2.413 150.777
VII.
OTHER LIABILITIES (4)
181.834 12.509 194.343 99.589 9.393 108.982
VIII. FINANCE LEASE PAYABLES
(5)
-
-
-
6
-
6
8.1
Finance lease payables
-
-
-
6
-
6
8.2
Operating lease payables
-
-
-
-
-
8.3
Other -
-
-
-
-
8.4
Deferred finance lease expenses (-)
-
-
-
-
-
IX. DERIVATIVE FINANCIAL LIABILITIES FOR HEDGING PURPOSES
(6)
-
-
-
-
-
9.1
Fair value hedge
-
-
-
-
-
9.2
Cash flow hedge
-
-
-
-
-
9.3
Hedge of net investment in foreign operations -
-
-
-
-
X. PROVISIONS
(7)
113.726 15.021 128.747 94.571 12.252 106.823
10.1 General loan loss provisions
75.756 13.612 89.368 61.625 10.661 72.286
10.2 Restructuring provisions
-
-
-
-
-
10.3 Reserve for employee benefits
16.689 -
16.689 14.450 -
14.450
10.4 Insurance technical reserves (Net)
-
-
-
-
-
10.5 Other provisions
21.281 1.409 22.690 18.496 1.591 20.087
XI.
TAX LIABILITY
(8)
48.627 6
48.633 38.173 3
38.176
11.1 Current tax liability
48.627 6
48.633 36.923 3
36.926
11.2 Deferred tax liability
-
-
-
1.250 -
1.250
XII.
PAYABLES RELATED TO ASSETS HELD FOR SALE (Net)
(9)
-
-
-
-
-
12.1 Held for sale
-
-
-
-
-
12.2 Discontinued operations
-
-
-
-
-
XIII. SUBORDINATED LOANS
(10)
-
-
-
-
-
XIV. SHAREHOLDERS’ EQUITY
(11)
1.707.894 - 1.707.894 1.403.692 -
1.403.692
14.1 Paid-in capital
900.000 -
900.000 900.000 -
900.000
14.2 Capital reserves
10.503 -
10.503 7.582 -
7.582
14.2.1 Share premium
3.307 -
3.307 3.307 -
3.307
14.2.2 Share cancellation profits
-
-
-
-
-
14.2.3 Marketable securities revaluation reserve
2.921 -
2.921 -
-
14.2.4 Tangible assets revaluation reserve
4.275 -
4.275 4.275 -
4.275
14.2.5 Intangible assets revaluation reserve
-
-
-
-
-
14.2.6 Investment property revaluation reserve
-
-
-
-
-
14.2.7 Bonus shares obtained from associates, subsidiaries and jointly controlled entities
-
-
-
-
-
14.2.8 Hedging funds (Effective portion)
-
-
-
-
-
14.2.9 Value increase on assets held for resale
-
-
-
-
-
14.2.10 Other capital reserves
-
-
-
-
-
14.3 Profit reserves
496.110 -
496.110 249.581 -
249.581
14.3.1 Legal reserves
37.886 -
37.886 25.561 -
25.561
14.3.2 Status reserves
-
-
-
-
-
14.3.3 Extraordinary reserves
458.224 -
458.224 224.020 -
224.020
14.3.4 Other profit reserves
-
-
-
-
-
14.4 Profit or loss
301.281 -
301.281 246.529 -
246.529
14.4.1 Prior year income / (losses)
-
-
-
-
-
14.4.2 Current year income / (losses)
301.281 -
301.281 246.529 -
246.529
14.5 Minority shares
-
-
-
-
-
TOTAL LIABILITIES AND EQUITY
8.230.816
3.378.139 11.608.955
5.387.882 2.720.947 8.108.829
96
Statement of Off-Balance Sheet Contingengies and Commitments
Audited
Audited
Note
(31/12/2009)
(31/12/2008)
TRY
FC
Total
TRY
FC
Total
A. OFF BALANCE SHEET COMMITMENTS AND CONTINGENCIES (I+II+III)
6.632.958 5.627.280 12.260.238 6.848.787 6.016.960 12.865.747
I.
GUARANTEES
(1), (2)
3.984.518 4.901.459 8.885.977 4.600.807 5.614.608 10.215.415
1.1.
Letters of guarantees
3.968.241 3.401.220 7.369.461 4.594.063 4.052.510 8.646.573
1.1.1. Guarantees subject to State Tender Law -
-
-
-
-
1.1.2. Guarantees given for foreign trade operations
-
-
-
-
-
1.1.3. Other letters of guarantee
3.968.241 3.401.220 7.369.461 4.594.063 4.052.510 8.646.573
1.2.
Bank loans -
120.412 120.412 -
169.474 169.474
1.2.1. Import letter of acceptances
-
120.412 120.412 -
169.474 169.474
1.2.2. Other bank acceptances
-
-
-
-
-
1.3.
Letter of credits
270 1.249.850 1.250.120 41 1.221.227 1.221.268
1.3.1. Documentary letter of credits
-
-
-
-
-
1.3.2. Other letter of credits
270 1.249.850 1.250.120 41 1.221.227 1.221.268
1.4.
Prefinancing given as guarantee
-
-
-
-
-
1.5.
Endorsements
-
-
-
-
-
1.5.1. Endorsements to the Central Bank of Turkey
-
-
-
-
-
1.5.2. Other endorsements
-
-
-
-
-
1.6.
Other guarantees
16.007 129.977 145.984 6.703 171.397 178.100
1.7.
Other collaterals
-
-
-
-
-
II.
COMMITMENTS
(1), (2)
2.196.163 277.122 2.473.285 1.809.786 5.816 1.815.602
2.1.
Irrevocable commitments
2.196.163 277.122 2.473.285 1.809.786 5.816 1.815.602
2.1.1. Forward asset purchase commitments
240.276 254.576 494.852 1.537 5.816 7.353
2.1.2. Share capital commitment to associates and subsidiaries
7.153 22.546 29.699 6.869 -
6.869
2.1.3. Loan granting commitments
140.538 -
140.538 128.301 -
128.301
2.1.4. Securities underwriting commitments
-
-
-
-
-
2.1.5. Commitments for reserve deposit requirements
-
-
-
-
-
2.1.6. Payment commitment for checks
434.811 -
434.811 408.821 -
408.821
2.1.7. Tax and fund liabilities from export commitments
1.596 -
1.596 -
-
2.1.8. Commitments for credit card expenditure limits
1.365.927 -
1.365.927 1.256.191 -
1.256.191
2.1.9. Commitments for promotions related with credit cards and banking activities
5.862 -
5.862 8.067 -
8.067
2.1.10. Receivables from short sale commitments
-
-
-
-
-
2.1.11. Payables for short sale commitments
-
-
-
-
-
2.1.12. Other irrevocable commitments
-
-
-
-
-
2.2.
Revocable commitments
-
-
-
-
-
2.2.1. Revocable loan granting commitments
-
-
-
-
-
2.2.2. Other revocable commitments
-
-
-
-
-
III.
DERIVATIVE FINANCIAL INSTRUMENTS
(3)
452.277 448.699 900.976 438.194 396.536 834.730
3.1.
Derivative financial instruments for hedging purposes
-
-
-
-
-
3.1.1. Fair value hedge
-
-
-
-
-
3.1.2. Cash flow hedge
-
-
-
-
-
3.1.3. Hedge of net investment in foreign operations
-
-
-
-
-
3.2.
Held for trading transactions
452.277 448.699 900.976 438.194 396.536 834.730
3.2.1. Forward foreign currency buy/sell transactions
452.277 448.699 900.976 438.194 396.536 834.730
3.2.1.1. Forward foreign currency transactions-buy
452.277 -
452.277 438.194 -
438.194
3.2.1.2. Forward foreign currency transactions-sell
-
448.699 448.699 -
396.536 396.536
3.2.2. Other Forward buy/sell transactions
-
-
-
-
-
3.3.
Other
-
-
-
-
-
-
97
Audited
Audited
Note
(31/12/2009)
(31/12/2008)
TRY
FC
Total
TRY
FC
Total
B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) 86.043.258 63.997.965 150.041.223 70.017.593 57.208.709 127.226.302
IV.
ITEMS HELD IN CUSTODY
620.403 366.541 986.944 587.342 785.871 1.373.213
4.1.
Assets under management
-
-
-
-
-
4.2.
Investment securities held in custody
2.885 -
2.885 2.885 -
2.885
4.3.
Checks received for collection
498.606 198.477 697.083 431.058 272.104 703.162
4.4.
Commercial notes received for collection
118.907 65.752 184.659 153.260 69.617 222.877
4.5.
Other assets received for collection
-
63.335 63.335 -
444.120 444.120
4.6.
Assets received for public offering
-
-
-
-
-
4.7.
Other items under custody
4
-
4
139 30 169
4.8.
Custodians
1
38.977 38.978 -
-
V.
PLEDGED ITEMS 85.422.855 63.631.424 149.054.279 69.430.251 56.422.838 125.853.089
5.1.
Marketable securities
488.378 293.318 781.696 351.244 299.026 650.270
5.2.
Guarantee notes
29.086.179 24.163.628 53.249.807 23.828.375 21.440.634 45.269.009
5.3.
Commodity
1.522.022 402.926 1.924.948 948.499 336.811 1.285.310
5.4.
Warranty
-
-
-
-
-
5.5.
Properties
12.372.061 1.218.189 13.590.250 10.458.296 1.306.210 11.764.506
5.6.
Other pledged items
41.954.215 37.553.363 79.507.578 33.843.837 33.040.157 66.883.994
5.7.
Pledged items-depository
-
-
-
-
-
VI.
ACCEPTED INDEPENDENT GUARANTEES AND WARRANTIES
-
-
-
-
-
TOTAL OFF BALANCE SHEET ACCOUNTS (A+B) 92.676.216 69.625.245 162.301.461 76.866.380 63.225.669 140.092.049
98
Consolidated Statement of Income
STATEMENT OF INCOME
Note
I.
PROFIT SHARE INCOME
(1)
1.1
Profit share on loans
1.2
Profit share on reserve deposits
1.3
Profit share on banks
1.4
Profit share on money market placements
1.5
Profit share on marketable securities portfolio
1.5.1 Held-for-trading financial assets
1.5.2 Financial assets at fair value through profit and loss
1.5.3 Available-for-sale financial assets
1.5.4 Investment-held for maturity
1.6
Finance lease income
1.7
Other profit share income
II.
PROFIT SHARE EXPENSE
(2)
2.1
Expense on profit sharing accounts
2.2
Profit share expense on funds borrowed
2.3
Profit share expense on money market borrowings
2.4
Expense on securities issued
2.5
Other profit share expense
III.
NET PROFIT SHARE INCOME (I - II)
IV.
NET FEES AND COMMISSIONS INCOME
4.1
Fees and commisions received
4.1.1 Non-cash loans
4.1.2 Other
(12)
4.2
Fees and commisions paid
4.2.2 Other
(12)
V.
DIVIDEND INCOME
(3)
VI.
NET TRADING INCOME
(4)
6.1
Securities trading gains / (losses)
6.2
Profit on derivative financial instruments gains / (losses)
6.3
Foreign exchange gains / (losses)
VII.
OTHER OPERATING INCOME
(5)
VIII. NET OPERATING INCOME (III+IV+V+VI+VII)
IX.
PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-)
(6)
X.
OTHER OPERATING EXPENSES (-)
(7)
XI.
NET OPERATING INCOME/(LOSS) (VIII-IX-X)
XII.
AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER
XIII. GAIN / (LOSS) ON EQUITY METHOD
XIV. GAIN / (LOSS) ON NET MONETARY POSITION
XV.
PROFIT/(LOSS) FROM CONTINUED OPERATIONS BEFORE TAXES (XI+…+XIV)
(8)
XVI. TAX PROVISION FOR CONTINUED OPERATIONS (±)
(9)
16.1 Provision for current income taxes
16.2 Provision for deferred taxes
XVII. NET PROFIT/(LOSS) FROM CONTINUED OPERATIONS (XV±XVI)
(10)
XVIII. INCOME ON DISCONTINUED OPERATIONS
18.1 Income on assets held for sale
18.2 Income on sale of associates, subsidiaries and jointly controlled entities (Joint Vent.)
18.3 Income on other discontinued operations
XIX. LOSS FROM DISCONTINUED OPERATIONS (-)
19.1 Loss from assets held for sale
19.2 Loss on sale of associates, subsidiaries and jointly controlled entities (Joint vent.)
19.3 Loss from other discontinued operations
XX.
PROFIT / (LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII-XIX)
XXI. TAX PROVISION FOR DISCONTINUED OPERATIONS (±)
XXII. NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI)
XXIII. NET PROFIT/LOSS (XVII+XXII)
(11)
23.1 Group’s profit/loss
Earnings per share
CURRENT PERIOD
PRIOR PERIOD
Audited
Audited
(01/01/2009-31/12/2009)
(01/01/2008-31/12/2008)
1.305.652 1.068.206
1.203.356 963.490
19.734 25.841
52.215 48.862
-
14.040 -
-
7.020 7.020 16.300 30.013
7
(705.805)
(566.816)
(686.142)
(543.831)
(18.259)
(21.630)
-
-
(1.404)
(1.355)
599.847 501.390
258.373 226.215
311.003 289.429
174.517 143.560
136.486 145.869
(52.630)
(63.214)
(69)
(481)
(52.561)
(62.733)
-
3.925
93.765 59.420
-
203.194 15.366
(109.429)
44.054
102.619 67.734
1.054.604 858.684
(217.159)
(156.614)
(459.053)
(390.166)
378.392 311.904
-
-
-
378.392 311.904
(77.111)
(65.375)
(83.845)
(63.147)
6.734 (2.228)
301.281 246.529
-
-
-
-
-
-
-
-
-
-
-
-
-
301.281
246.529
301.281 246.529
-
0,33 0,33
99
Statement of Profit and Loss Items Accounted Under Equity
CURRENT PERIOD
PRIOR PERIOD
Audited
Audited
STATEMENT OF PROFIT AND LOSS ITEMS ACCOUNTED UNDER EQUITY
(01/01/2009-31/12/2009)
(01/01/2008-31/12/2008)
I.
Additions to marketable securities revaluation differences for available for sale financial assets
3.651 II.
Tangible assets revaluation differences -
4.275
III.
Intangible assets revaluation differences
-
IV.
Foreign exchange differences for foreign currency transactions
-
V.
Profit/Loss from derivative financial instruments for cash flow hedge purposes
(Effective portion of fair value differences)
-
VI.
Profit/Loss from derivative financial instruments for hedge of net investment in foreign operations
VII.
The effect of corrections of errors and changes in accounting policies
-
VIII. Other profit loss items accounted under equity due to TAS -
IX.
Deferred tax of valuation differences
(730)
X.
Total Net Profit/Loss accounted under equity (I+II+…+IX)
2.921 4.275
XI.
Profit/Loss
-
11.1 Change in fair value of marketable securities (Transfer to Profit/Loss)
-
11.2 Reclassification and transfer of derivatives accounted for cash flow hedge purposes to Income Statement -
11.3 Transfer of hedge of net investments in foreign operations to Income Statement
-
11.4 Other -
XII.
Total Profit/Loss accounted for the period (X±XI)
2.921 4.275
100
Consolidated Statement of Changes in Shareholder’s Equity
Effect of inflation
Share
Accounting on Certificate
Paid-in Capital and Other
Share Cancellation
Legal Statutory
STATEMENT OF CHANGES OF SHAREHOLDER’S EQUITY Note
Capital Capital Reserves Premium
Profits Reserves Reserves
PRIOR PERIOD
Audited
(01/01-31/12/2008)
I.
Prior Period Balance - 31.12.2007 300.000 - 150.000 -
14.708 -
II.
Corrections according to TAS 8
-
-
-
-
-
-
2.1.
The effect of corrections of errrors
-
-
-
-
-
-
2.2.
The effects of changes in accounting policy
-
-
-
-
-
-
III.
New Balance (I+II) 300.000 - 150.000 -
14.708 -
Changes in period
-
-
-
-
-
-
IV.
Increase/Decrease related to merger
-
-
-
-
-
-
V.
Marketable securities revaluation differences
-
-
-
-
-
-
VI.
Hedging Funds (Effective Portion)
-
-
-
-
-
-
6.1
Cash-flow hedge
-
-
-
-
-
-
6.2
Hedge of net investment in foreign operations
-
-
-
-
-
-
VII.
Tangible assets revaluation differences
-
-
-
-
-
-
VIII. Intangible assets revaluation differences
-
-
-
-
-
-
IX.
Bonus shares obtained from associates, subsidiaries and jointly
controlled entities (Joint vent.)
-
-
-
-
-
-
X.
Foreign exchange differences
-
-
-
-
-
-
XI.
The disposal of assets
-
-
-
-
-
-
XII.
The reclassification of assets
-
-
-
-
-
-
XIII. The effect of change in associate’s equity
-
-
-
-
-
-
XIV. Capital increase 600.000 - (150.000)
-
-
-
14.1 Cash 300.000 -
-
-
-
-
14.2 Internal sources 300.000 - (150.000)
-
-
-
XV.
Share premium
-
-
3.307 -
-
-
XVI. Share cancellation profits
-
-
-
-
-
-
XVII. Inflation adjustment to paid-in capital
-
-
-
-
-
-
XVIII. Other
-
-
-
-
-
-
XIX
Period net income/(loss)
-
-
-
-
-
-
XX.
Profit distribution
-
-
-
-
10.853 -
20.1 Dividends distributed
-
-
-
-
-
-
20.2 Transfers to reserves
-
-
-
-
10.853 -
20.3 Other
-
-
-
-
-
-
Closing Balance (I+II+III+-…...+XVI+XVII+XVIII) 900.000 -
3.307 -
25.561 -
CURRENT PERIOD
Audited
(01/01-31/12/2009)
I.
Prior Period Balance - 31.12.2008 900.000 -
3.307 -
25.561 -
Changes in period
-
-
-
-
-
-
II.
-
-
-
-
-
-
III.
-
-
-
-
-
-
IV.
-
-
-
-
-
-
4.1
Cash-flow hedge
-
-
-
-
-
-
4.2
-
-
-
-
-
-
V.
-
-
-
-
-
-
VI.
-
-
-
-
-
-
VII.
-
-
-
-
-
-
VIII. Foreign exchange differences
-
-
-
-
-
-
IX.
-
-
-
-
-
-
X.
-
-
-
-
-
-
XI.
The effect of change in associate’s equity
-
-
-
-
-
-
XII.
Capital increase
-
-
-
-
-
-
12.1 Cash
-
-
-
-
-
-
12.2 Internal sources
-
-
-
-
-
-
XIII. Share premium
-
-
-
-
-
-
XIV. Share cancellation profits
-
-
-
-
-
-
XV.
Inflation adjustment to paid-in capital
-
-
-
-
-
-
XVI. Other -
-
-
-
-
-
XVII. Period net income/(loss)
-
-
-
-
-
-
XVIII. Profit distribution
-
-
-
-
12.325 -
-
-
-
-
-
-
-
-
-
-
12.325 -
18.3 Other
-
-
-
-
-
-
Closing Balance (I+II+III+-…...+XVI+XVII+XVIII) 900.000 -
3.307 -
37.886 -
101
Consolidated Statement of Changes in Shareholder’s Equity
Marketable
Tangible and Acc. Val. Diff.
Current
Prior Securities Intangible Assets
Bonus Sharesfrom Assets Held
Equity
Extraordinary
Other
Period Net
Period NetRevaluation
Revaluation
Obtained
Hedging
for Sale and Attributable Minority
Reserve Reserve Income/(Loss) Income/(Loss)
Reserve
Differences from Associates
Funds from Disc. Op. to the Parent Shares
167.811 -
221.337 -
-
-
-
-
-
853.856 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
167.811 -
221.337 -
-
-
-
-
-
853.856 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4.275 -
(4.275)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
Equity
853.856
853.856
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(150.000)
-
-
-
-
-
-
-
-
300.000 - 300.000
-
-
-
-
-
-
-
-
-
300.000 -
300.000
(150.000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.307 -
3.307
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
246.529 -
-
-
-
-
-
246.529 - 246.529
206.209 -
(221.337)
4.275 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
206.209 -
-
(217.062)
-
-
-
-
-
-
-
-
-
(221.337)
221.337 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
224.020 4.275 246.529 -
-
-
-
-
- 1.403.692 - 1.403.692
224.020 4.275 246.529 -
-
-
-
-
- 1.403.692 - 1.403.692
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.921 -
-
-
-
2.921 -
2.921
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
301.281 -
-
-
-
-
-
301.281 - 301.281
234.204 -
(246.529)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
234.204 -
-
(246.529)
-
-
-
-
-
-
-
-
-
(246.529)
246.529 -
-
-
-
-
-
-
458.224 4.275 301.281 -
2.921 -
-
-
- 1.707.894 - 1.707.894
102
Consolidated Statement of Cash Flows (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
CURRENT PERIOD
PRIOR PERIOD
Audited
Audited
Note
(01/01/2009-31/12/2009)
(01/01/2008-31/12/2008)
A.
CASH FLOWS FROM BANKING OPERATIONS
1.1
Operating profit before changes in operating assets and liabilities
456.994 115.077
1.1.1 Profit share income received
1.206.091 954.551
1.1.2 Profit share expense paid
(723.532)
(539.483)
1.1.3 Dividend received
-
1.1.4 Fees and commissions received
311.003 289.429
1.1.5 Other income
224.716 32.762
1.1.6 Collections from previously written off loans
21.917 12.114
1.1.7 Payments to personnel and service suppliers
(213.048)
(174.283)
1.1.8 Taxes paid
(90.450)
(77.312)
1.1.9 Others (279.703)
(382.701)
1.2
Changes in operating assets and liabilities
1.097.393 (463.499)
1.2.1 Net (increase) decrease in financial assets
-
1.2.2 Net (increase) decrease in financial assets at fair value through profit or loss
-
1.2.3 Net (increase) decrease in due from banks and other financial institutions
-
1.2.4 Net (increase) decrease in loans
(2.049.726)
(1.387.846)
1.2.5 Net (increase) decrease in other assets
(131.550)
(19.046)
1.2.6 Net increase (decrease) in bank deposits
(1.157)
(2.031)
1.2.7 Net increase (decrease) in other deposits
3.347.481 889.102
1.2.8 Net increase (decrease) in funds borrowed
(215.346)
71.503
1.2.9 Net increase (decrease) in due payables
-
1.2.10 Net increase (decrease) in other liabilities
147.691 (15.181)
-
I.
Net cash provided from banking operations
1.554.387 (348.422)
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
Net cash provided from investing activities
(204.757)
(76.770)
2.1
Cash paid for purchase of entities under common control, associates and subsidiaries
(22.804)
(26.265)
2.2
Cash obtained from sale of entities under common control, associates and subsidiaries
-
2.3
Fixed assets purchases (42.932)
(52.656)
2.4
Fixed assets sales
10.979 2.151
2.5
Cash paid for purchase of financial assets available for sale
(75.000)
2.6
Cash obtained from sale of financial assets available for sale
-
2.7
Cash paid for purchase of investment securities
(75.000)
2.8
Cash obtained from sale of investment securities -
2.9
Other
-
C.
CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net cash provided from financing activities (6)
289.473
3.1
Cash obtained from funds borrowed and securities issued
-
3.2
Cash used for repayment of funds borrowed and securities issued
-
3.3
Capital increase -
303.307
3.4
Dividends paid
-
3.5
Payments for finance leases
(6)
(13.834)
3.6
Other -
IV.
Effect of change in foreign exchange rate on cash and cash equivalents
(2.641)
(619)
V.
Net increase in cash and cash equivalents
1.346.983 (136.338)
VI.
Cash and cash equivalents at the beginning of the year
(1)
1.240.507 1.376.845
VII.
Cash and cash equivalents at the end of the year
(1)
2.587.490 1.240.507
103
Profit Distribution Table
CURRENT PERIOD
PRIOR PERIOD
Audited
Audited
(01/01-31/12/2008)
(01/01-31/12/2009)
I. DISTRIBUTION OF CURRENT PERIOD PROFIT (**)
1.1
CURRENT PERIOD PROFIT
378.392
311.904
1.2
TAXES AND DUES PAYABLE (-)
(77.111)
(65.375)
1.2.1 Corporate Tax (Income Tax)
(83.845)
(63.147)
1.2.2 Withholding Tax
-
1.2.3 Other taxes and dues (*)
6.734 (2.228)
A.
NET PERIOD PROFIT (1.1-1.2)
301.281 246.529
1.3
PRIOR YEAR’S LOSSES (-)
-
1.4
FIRST LEGAL RESERVES (-)
-
(12.325)
1.5
OTHER STATUTORY RESERVES (-)
-
B.
DISTRIBUTABLE NET PERIOD PROFIT [(A-(1.3+1.4+1.5)]
301.281
234.204
1.6 FIRST DIVIDEND TO SHAREHOLDERS (-)
1.6.1 To Owners of Ordinary Shares
-
1.6.2 To Owners of Preferred Stocks
-
1.6.3 To Owners of Preferred Stocks (Preemptive Rights)
-
1.6.4 To Profit Sharing Bonds
-
1.6.5 To Owners of the profit /loss Sharing Certificates
-
1.7 DIVIDEND TO PERSONNEL (-)
-
1.8
DIVIDEND TO BOARD OF DIRECTORS (-)
-
1.9
SECOND DIVIDEND TO SHAREHOLDERS (-)
-
-
-
-
-
-
1.10 SECOND LEGAL RESERVE (-)
-
1.11 STATUS RESERVES (-) -
1.12 EXTRAORDINARY RESERVES -
234.204
1.13 OTHER RESERVES
-
1.14 SPECIAL FUNDS
-
II.
DISTRIBUTION FROM RESERVES
2.1
DISTRIBUTED RESERVES
-
2.2
SECOND LEGAL RESERVES (-)
-
2.3
SHARE TO SHAREHOLDERS (-)
-
-
-
-
-
-
2.4
SHARE TO PERSONNEL (-)
-
2.5
SHARE TO BOARD OF DIRECTORS (-)
-
III. EARNINGS PER SHARE
3.1
TO OWNERS OF STOCKS
-
3.2
TO OWNERS OF STOCKS ( % )
-
3.3
TO OWNERS OF PREFERRED STOCKS
-
3.4
TO OWNERS OF PREFERRED STOCKS ( % )
-
IV. DIVIDEND PER SHARE
-
4.1 TO OWNERS OF STOCKS
-
4.2
TO OWNERS OF STOCKS ( % )
-
4.3
-
4.4
TO OWNERS OF PREFERRED STOCKS ( % )
-
(*) Deferred tax expense is presented in “other tax and dues” line.
(**) Profit distribution is agreed on the General Assembly Meeting and as of the reporting date, the General Assembly meeting has not been held, yet. 104
SECTION THREE
1. Presentation of Financial Statements
The Bank prepares its financial statements and notes in accordance with the Communiqué on Banks’ Accounting Practice and Maintaining
Documents, Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”), other communiqués, pronouncements and
explanations about accounting and financial reporting issued by the Banking Regulation and Supervision Agency (BRSA), Turkish Commercial Code
and the Tax Legislation.
The prior period financial statements are presented in line with the principles of TAS No: 1 “Fundamentals of Preparing and Presenting Financial
Statements” published in the Official Gazette on January 16, 2005 with No: 25702, and in accordance with Turkish Accounting Standards and
Turkish Financial Reporting Standards; and other principles, methods and explanations about accounting and financial reporting issued by the
BRSA. Certain reclassifications have been made to the prior year financial statements to comply with the current year presentation.
2. Basis of Accounting
The accompanying financial statements are based on the Bank’s legal records. The Bank has recorded the adjustments of inflation accounting to
its legal records beginning from June 30, 2004 to December 31, 2004 in accordance with Act No: 5024 of the Tax Procedural Code. As of December
31, 2003, the financial statements are prepared in accordance with the legal books and historical cost principle except for the revaluation of fixed
assets and includes adjustments and reclassifications, including restatement for the changes in the general purchasing power of the Turkish Lira in
accordance with International Accounting Standard No: 29 “Financial Reporting in Hyperinflationary Economies” (“TAS 29”) prior to December 31,
2004 for the purpose of fair presentation.
II.Explanations on Usage Strategy of Financial Assets and Foreign Currency Transactions
The Bank manages its financial instrument strategies depending on the financing sources. The sources mainly constitute of the current and profit
sharing accounts. As of the balance sheet date, the Bank’s assets and equity structure are sufficient to cover its liabilities. The Bank allocates 27%
of its profit sharing accounts to liquid instruments (December 31, 2008: 21%).
The Bank does not carry a significant foreign currency position risk due to the existing floating exchange rate regime. The investment decisions
are made by taking into consideration the maturity structure of the balance sheet items. The allocations of asset items are designated, and yield
analysis are made based on this designation.
In the statutory records of the Bank, the transactions recorded in foreign currencies (all other currencies except Turkish Lira) are translated into
the Turkish Lira at the exchange rates prevailing at the transaction dates. Monetary asset and liabilities denominated in foreign currencies are
translated into the Turkish Lira at the balance sheet date of the Bank. Foreign exchange gains or losses arising from the translation of monetary
items and foreign currency denominated collections or disbursements are recognized in the income statement.
III.Explanations on Forward and Option Contracts and Derivative Instruments
In determination of fair value of forward and swap transactions, forward rates discounted to the balance sheet date by prevailing are compared
with the expected discounted rates at maturity calculated based on the prevailing profit shares as of the balance sheet date and arising foreign
exchange differences are recognized in the income statement. Although some of the derivative transactions provide economic hedging, since all
necessary conditions for hedge accounting have not been, yet, the bank classifies these transactions as “held for trading” therefore changes in the
fair value of derivative financial instruments are recognized in profit or loss as they arise.
IV.Explanations on Profit Share Income and Expenses
Profit share income and expenses are recognized in the income statement on an accrual basis.
Realized and unrealized profit share accruals of the non-performing loans are reversed and profit share income in connection with these loans is
recorded as profit share income only when they are collected.
105
V.Explanations on Fees and Commission Income and Expenses
Banking service revenues are recognized as income only when they are collected while only the current portion of the prepaid commission income
obtained from loans is recorded as income based on the periodicity principle.
VI. Explanations on Financial Assets
Financial instruments comprise of financial assets, financial liabilities and derivative instruments. Financial assets and financial liabilities are
recognized on the Bank’s balance sheet when the Bank becomes a party to the contractual provisions of the instrument.
Basically, financial assets form majority of the commercial activities and operations of the Bank. Financial instruments expose, change or reduce
the liquidity and credit risks of the Bank’s financial statements.
Fair value is the amount for which an asset could be exchanged or a liability settled, between knowledgeable willing parties in an arms length
transaction. Fair value is best evidenced by a market price, being the amount obtainable from the sale, or payable on the acquisition, of a financial
instrument in an active market, if one exists.
Estimated fair values of financial assets are determined by the Bank by using the information about the market and relevant valuation methods.
However, interpretation of market information is necessary to determine fair value. Therefore, estimated fair values presented in this report may
not be necessarily equivalent of the disposal values of such assets derived from current market conditions. Some carrying values of the financial
instruments which are same with their cost values are assumed to be equal to their fair values because of their short term nature.
The methods and assumptions used in determining the reasonable estimated values of all financial instruments are mentioned below:
Cash, Banks, and Other Financial Institutions:
Cash and cash equivalents comprise of cash on hand, demand deposits, and highly liquid short-term investments not bearing risk of significant
value change, and that are readily convertible to a known amount of cash. The book value of these financial assets approximate to their fair value.
Financial Assets at Fair Value Through Profit and Loss:
Marketable securities at fair value through profit or loss are classified in two categories; i) marketable securities classified as trading securities:
acquired or incurred principally for the purpose of selling or repurchasing it in the near term in order to benefit from short-term profit
opportunities; ii) marketable securities classified as marketable securities at fair value through profit or loss at initial recognition. The Bank uses the
above-mentioned classification when permitted, or for the purposes of providing a more appropriate presentation.
In this group, trading securities are initially recognized at cost and measured at fair value on the financial statements. Fair value of debt securities
traded in an active market is determined based on the quoted prices or current market prices.
The difference between initial cost and fair value of financial assets at fair value through profit and loss is reflected to profit share income or
diminution in value of marketable securities accounts. Profit share income from financial assets at fair value through profit and loss is reflected in
profit share income.
As of December 31, 2009, the Bank has TRY 3.889 Thousand of derivative financial assets held for trading at fair value through profit or loss
(December 31, 2008: TRY 30.035 Thousand).
Held to Maturity Investments:
Investments held to maturity include securities with fixed or determinable payments and fixed maturity when there is an intention of holding till
maturity and the relevant conditions for fulfillment of such intention, including the funding ability. This portfolio excludes loans and receivables.
Subsequent to initial recognition, held to maturity investments are measured at amortized cost by using the effective interest rate less impairment
losses, if any. The Bank has no financial assets acquired and classified as held to maturity investments that cannot be subject to such classification
for two years because of the non-performance of tainting rules.
The profit share income received from held to maturity investments is recorded as profit share income in the income statement.
As of December 31, 2009, the Bank has TRY 76.460 Thousand of held to maturity investments (December 31, 2008: None).
106
Financial Assets Available for Sale:
Marketable securities classified as available for sale are initially recognized at cost including the transaction costs. After initial recognition, available
for sale securities are measured at fair value and unrealized gains/losses originating from the difference between the amortized cost and the fair
value are recorded in “Marketable Securities Value Increase Fund” under equity. At the disposal of available for sale financial assets, value increase/
decrease recorded in “Marketable Securities Value Increase Fund” under equity is transferred to the income statement. Equity instruments that are
classified as available for sale assets are recorded with their value after deduction of any impairment from original cost.
As of December 31, 2009, the Bank has TRY 80.204 Thousand of available for sale financial assets (December 31, 2008: None).
Loans and Receivables:
Loans and receivables are recognized at amortized cost. Fees, transaction costs and other similar costs in connection with the guarantees of loans
and receivables are not considered as part of the transaction cost and recognized as expense in the income statement.
Loans are transferred to the relevant accounts in with their cash amounts and income accruals are calculated by using the internal rate of return
method and the related income is recorded in the profit share income item. Foreign currency and foreign currency indexed loans are evaluated and
evaluation differences are accounted under “Foreign Exchange Gains” and/or “Foreign Exchange Losses” in the income statement.
The classification and provisioning of doubtful loans/receivables are appropriately accounted for in accordance with the prevailing regulations, and
specific provisions allocated are recognized in the income statement for the period. Collections made from such loans are recognized under the
“Non-performing loans” (including receivables from the doubtful receivables) account and “Profit share income received from Uncollectible Loans
and Other Receivables” account.
Released provisions are accounted as a cancellation of such provisions if realized in the current year, and the remaining amounts are recognized in
the account of collections from the prior year expenses.
In addition to specific loan loss provisions, within the framework of the regulation and principles referred to above; the Bank records a general
loan loss provision for loans and other receivables. The Bank calculated the general loan provision at 0, 5% for cash loans and other receivables,
and 0, 1% for non-cash loans until November 1, 2006. Subsequent to the change in the regulation on “Determining the Nature of Loan and Other
Receivable Provisions Allocated By Banks and Procedures and Principles of Allocating Provisions” which was published in the Official Gazette
No: 26333 on November 1, 2006; the Bank started to book general loan loss provision at 1% for cash loans and other receivables; and 0,2% for
non-cash loans on the increase in the cash and non-cash loan portfolio as compared to their October 31, 2006 balances whereas allocating 0,5%
general loan loss provision for cash loans and other receivables, and 0,1% for non-cash loans for the balances as of October 31, 2006. Together
with the change in the same regulation made on February 6, 2008, the Bank started to book general loan loss provision at 2% for cash loans under
watch-list and 0, 4% for non-cash loans under watch-list.
VII.Explanations on Impairment of Financial Assets
At each balance sheet date, the Bank evaluates the carrying amounts of its financial asset or a group of financial assets to determine whether
there is an objective indication that those assets have suffered an impairment loss. If such an indication exists, the Bank determines the related
impairment.
A financial asset or a financial asset group incurs impairment loss only if there is an objective indicator related to the occurrence (loss/damage
event) of one or more than one event (or occurrence) subsequent to initial recognition of that asset; and such loss event causes an impairment
loss as a result of the effect on the reliable estimate of the expected future cash flows of the related financial asset and asset group. Any amounts
attributable to expected losses arising from any future events is not recognized under no circumstances.
Companies that are required to prepare separate financial statements under the statutory requirements in accordance with TAS 27 “Consolidated
and Separate Financial Statements” can represent their subsidiaries or associates either at cost or based on requirements set out in TAS 39,
“Financial Instruments: Recognition and Measurement”. In this respect, the Bank chooses to use the first method and presents the subsidiaries,
jointly controlled entities and associates at cost less impairment loss, if any.
VIII.Explanations on Offsetting Financial Assets and Liabilities
Financial assets and liabilities are offset when the Bank has a legally enforceable right to set off, and when the Bank has the intention of collecting
or paying the net amount of related assets and liabilities or when the Bank has the right to offset the assets and liabilities simultaneously.
107
IX.Explanations on Sales and Repurchase Agreements and Lending of Securities
The Bank does not have any repurchase agreements or lending of securities.
X.Explanations on Assets Held for Sale, Discontinued Operations and Liabilities Related to Those Assets
The principles on accounting, assessment and disposal of assets held for sale are determined based on the Communiqué of “Principles and
Procedures on Bank’s Disposal of Precious Metals and Assets Held for Sale” published on November 1, 2006 in the official Gazette numbered 26333.
Although the Bank has assets held for sale in the balance sheet, due to the fact that the Bank does not have a formal plan to dispose of these
assets in one year subsequent to their classification date, such assets are continued to be depreciated. For this reason, these assets are classified as
tangible assets instead of assets held for sale in the accompanying financial statements.
Assets held for sale are measured at the lower of the carrying amount of assets and fair value less any cost incurred for disposal. Assets held
for sale are not amortized and presented in the financial statements separately. In order to classify an asset as held for sale, only when the sale
is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to
the sale, which should be expected to qualify for recognition as a completed sale. Highly saleable condition requires a plan by the management
regarding the sale of the asset to be disposed of (or else the group of assets), together with an active program for the determination of buyers
as well as for the completion of the plan. Also the asset (or else the group of assets) shall be actively marketed in conformity with its fair value.
On the other hand, the sale is expected to be recognized as a completed sale within one year after the classification date; and the necessary
transactions and procedures to complete the plan should demonstrate the fact that there is remote possibility of making any significant changes
or cancellation of the plan.
Various events and conditions may extend the completion period of the disposal more than a year. If such delay arises from any events and
conditions beyond the control of the entity and there is sufficient evidence that the entity has an ongoing disposal plan for these assets, such
assets (or else group of assets) are continued to be classified as assets held for sale (or else group of assets).
As of December 31, 2009, assets held for sale amounts to TRY 9.196 Thousand (December 31, 2008: TRY 24.100 Thousand).
A discontinued operation is a division of a bank that is either disposed of or held for sale. Results of discontinued operations are included in the
income statement separately.
XI.Explanations on Goodwill and Other Intangible Assets
Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group’s
interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognized at
the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment
losses. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the
synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently
when there is an indication that the unit may be impaired.
If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce
the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of
each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. On disposal of a subsidiary or a jointly
controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
No goodwill amount is recognized in the unconsolidated financial statements of the Bank as of the balance sheet date.
Intangible assets acquired prior to January 1, 2005 are accounted for at restated cost less accumulated depreciation and any impairment loss,
and the intangible assets acquired in subsequent periods are accounted for at acquisition cost less accumulated depreciation and any impairment
loss if any, for those acquired prior to January 1, 2005. Intangible assets are amortized by using the straight line method considering their useful
lives. Amortization method is reviewed at the end of each year periodically. Intangible assets mainly constitute of rights and amortized using the
straight line method in 5 years.
108
XII.Explanations on Tangible Fixed Assets
Prior to January 1, 2005, tangible assets are accounted for at acquisition cost plus any other direct costs incurred to bring the asset for ready to
use. Tangible assets are remeasured at their acquisition cost less accumulated depreciation and impairment loss, if any.
Depreciation of assets held less than one year as of the balance sheet date is accounted for proportionately.
If the fair value of tangible assets is under their carrying value, impairment loss is allocated for exceeding amounts and these amounts are
recognized as an impairment in the financial statements.
Gains or losses resulting from disposals of tangible assets are recognized in the income statement.
Maintenance costs of the tangible assets are recognized in the income statement as an expense.
There are no pledges, mortgages or other restrictions on tangible assets.
Tangible Asset
Safety Boxes
Office Equipment
Furniture and Fixtures
Vehicles
Leasehold Improvements
Buildings
Useful Life
5 years
5 years
5 years
5 years
5 years
50 years
XIII.Explanations on Leasing Transactions
Bank as a Lessor:
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Amounts due from lessees under finance leases are recorded as receivables at the amount of the Bank’s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Bank’s net investment outstanding in respect of
the leases.
Bank as a Lessee:
Assets held under finance leases are recognized as assets of the Bank at their fair value at the inception of the lease or, if lower, at the present
value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged to profit or loss, unless they are directly attributable to qualifying assets, in which
case they are capitalized in accordance with the Bank’s general policy on borrowing costs.
As of December 31, 2009, the Bank, as a lessee, has operating leases for vehicles and branches in addition to its assets through financial lease.
XIV. Explanations on Provisions and Contingent Liabilities
Provisions are recognized when there is a present obligation, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are continuously
reviewed in order to determine whether there is any possibility of cash flow with regards to the sources having economic benefit for the Bank.
XV.Explanations on Liabilities for Employee Benefits
Under the Turkish law and union agreements, lump sum payments are made to employees retiring or involuntarily leaving the Bank. The retirement
pay provision recognized represents the present value of the defined benefit obligation as adjusted for unrecognized gains and losses in accordance
with TAS 19 “Employee Benefits”. The defined obligation is determined by independent actuaries.
109
XVI. Explanations on Taxation
Tax expense comprises of current tax and deferred tax expenses.
Current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
According to the Article 32 of the Corporate Tax Law No. 5520, announced in the Official Gazette dated June 21, 2006, the corporate tax rate is
20%.
eferred tax asset or liability is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the
D
corresponding tax bases used in the computation of taxable profit, and are accounted for using the balance sheet method. Deferred tax liabilities
are generally recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences to the
extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such assets and
liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination)
of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset
is realized and recognized in the income statement. If deferred tax is in connection with the assets directly associated with the equity, it shall be
directly associated with shareholder’s equity items.
Taxes payables and prepaid taxes are offset since they are levied by the same taxation authority. Deferred tax assets and liabilities are also offset.
The Bank has adjusted its statutory financial statements based on inflation accounting as of January 1, 2004 in accordance with Law No: 5024.
XVII. Additional Disclosures on Borrowings
Borrowings are recognized in accordance with TAS 39 “Financial Instruments: Recognition and Measurement”.
No specific hedging technique is applied for borrowings, their accounting and valuation methods excluding some general methods applied for
avoiding any liquidity and currency risks.
There are no debt securities or convertible bonds issued by the Bank.
XVIII.Explanations on Exported Share Certificates
As of the reporting date, there are no disclosures made on the profit sharing in connection with the Bank’s shares subsequent to the balance sheet
date.
XIX. Explanations on Acceptances
Acceptances are realized simultaneously with the payment dates of the customers and they are presented as probable commitments in the offbalance sheet accounts.
XX.Explanations on Government Incentives
There are no government incentives used by the Bank.
110
XXI.Explanations on Reporting According to Segmentation
The Bank operates in corporate, commercial and retail banking areas in line with its mission by means of profit/loss sharing methodology.
Current Period Retail Corporate and Commercial
Treasury Undistributed
Total Assets
1.101.731 7.108.176 2.461.065 937.983 Total Liabilities
6.169.720 2.966.859 191.616 2.280.760 Net Profit Share Income/(Expense)(*)
(359.390)
891.255 49.559 18.423 Net Fees and Commissions Income/(Expense) (2.577)
253.953 (1.598)
8.595 Other Operating Income/(Expense)
(2.951)
(8.870)
-
(468.007)
Profit Before Tax
(364.918)
1.136.338 47.961 (440.989)
Tax Provision
-
-
-
(77.111)
Net Profit for the Period
(364.918)
1.136.338 47.961 (518.100)
Total
11.608.955
11.608.955
599.847
258.373
(479.828)
378.392
(77.111)
301.281
(*) The allocation of retail, corporate and commercial banking segments above is the result of differentiation in fund collection and allocation
procedures of the participation banks.
Prior Period Retail Corporate and Commercial
Treasury Undistributed
Total Assets
927.147 5.400.297 1.095.986 685.399 Total Liabilities
3.811.738 2.031.089 457.552 1.808.450 Net Profit Share Income/(Expense)(*)
(253.302)
701.436 27.273 25.983 Net Fees and Commissions Income/(Expense) (9.757)
221.099 (1.262)
16.135 Other Operating Income/(Expense)
(5.370)
(11.115)
-
(399.216)
Profit Before Tax
(268.429)
911.420 26.011 (357.098)
Tax Provision
-
-
-
(65.375)
(268.429)
911.420 26.011 (422.473)
Total
8.108.829
8.108.829
501.390
226.215
(415.701)
311.904
(65.375)
246.529
(*) The allocation of retail, corporate and commercial banking segments above is the result of differentiation in fund collection and allocation
procedures of the participation banks.
XXII. Explanations on Other Matters
None.
111
SECTION FOUR
INFORMATION ON FINANCIAL STRUCTURE
I.Explanations Related to Capital Adequacy Standard Ratio
The unconsolidated capital adequacy ratio of the Bank is 14,45% (December 31, 2008: 13,40%). Capital Adequacy Standard Ratio is calculated in
accordance with the Communiqué on “Measurement and Assessment of Capital Adequacy of Banks”, which was published on November 1, 2006
in the Official Gazette No: 26333. The calculation of Capital Adequacy Ratio includes the methods used in determining the Capital Adequacy
Ratio, determination of risk weighted assets and non-cash credits in line with the relevant banking regulation and measuring the market risk and
operational risk ratio in line with the same regulation.
R
isk Weights
Bank
Amount Subject to Credit Risk
0% 10%
20%
50%
100%
Balance Sheet Items (Net)
2.598.621
- 246.686 1.966.051
4.900.362
Cash and Cash Equivalents
131.917
-
-
-
-
Matured Marketable Securities
-
-
-
-
-
Due from Central Bank of Turkish Republic
2.008.055
-
-
-
-
Due from Domestic Banks, Foreign Banks, Branches
and Head Office Abroad
-
- 145.745
-
1.273
Interbank Money Market Placements
-
-
-
-
-
Receivables from Reverse Repo Transactions
-
-
-
-
-
Reserve Deposits
153.015
-
-
-
-
Loans
66.497
- 100.780 1.908.529
3.888.193
Non-Performing Loans (Net)
-
-
-
-
104.346
Financial Lease Receivables
5.829
-
-
7.193
101.190
Available-for-Sale Financial Assets
75.000
-
-
-
93
Held to Maturity Investments
75.000
-
-
-
-
Receivables from Installment Sales of Assets
-
-
-
-
-
Sundry Debtors
-
-
-
-
15.729
Accrued Profit Share and Income Accruals 11.521
-
161
50.329
280.441
Subsidiaries, Associates and Entities Under Common Control (Net)
-
-
-
-
184.839
Tangible Assets
-
-
-
-
268.242
Other Assets
71.787
-
-
-
56.016
Off-Balance Sheet Items
57.675
- 72.110
789.564
4.033.835
Guarantees and Commitments
57.675
- 63.064
789.564
4.033.835
Derivative Financial Instruments -
-
9.046
-
-
Non Risk Weighted Accounts
-
-
-
-
-
Total Risk Weighted Assets
2.656.296
- 318.796 2.755.615 8.934.197
150%
24.041
-
-
-
200%
1.753
-
-
-
-
-
24.041
-
-
-
-
-
-
-
-
-
-
-
-
-
-
24.041
1.753
1.753
Summary of the Capital Adequacy Standard Ratio of the Bank:
Total Risk Weighted Assets (TRWA)
Amount Subject to Market Risk (ASMR)
Amount Subject to Operational Risk (ASOR) (*)
Shareholders’ Equity/(TRWA + ASMR + ASOR) *100
Bank
Current Period
10.415.331 21.175 1.228.699 1.685.734 14,45 Prior Period
9.776.820
65.750
859.883
1.434.570
13,40
(*) The amount subject to operational risk is in accordance with the ‘Regulation Regarding Measurement and Evaluation of the Bank’s Capital
Adequacy Ratio published in the Official Gazette No: 26333 dated 1 November 2006 which is effective from 1 June 2007. Operational risk is
calculated by using the Basic Indicator Approach.
112
Components of Shareholders’ Equity:
CORE CAPITAL
Paid-in Capital
Nominal Capital
Capital Commitments (-)
Paid-in Capital Indexation Difference
Share Premium
Share Cancellations Profits
Legal Reserves
First Legal Reserve (Turkish Commercial Code 466/1)
Second Legal Reserve (Turkish Commercial Code 466/2)
Other Legal Reserve per Special Legislation Status Reserves
Extraordinary Reserves Reserves Allocated by the General Assembly
Retained Earnings
Accumulated Losses
Foreign Currency Share Capital Exchange Difference
Inflationary Adjustment to Legal Reserve, Status Reserves and Extraordinary Reserves Profit
Current Year Profit
Prior Years’ Profits
Provision for Possible Losses up to 25% of the Core Capital
Gains on Sale of Associates and Subsidiaries and Properties to be added to Capital
Primary Subordinated Loans up to 15% of the Core Capital
Losses that cannot be Covered by Reserves (-)
Net Current Period Loss
Prior Years’ Losses
Leasehold Improvements (-) Prepaid Expenses (-) Intangible Assets (-) Deferred Tax Asset Exceeding 10% of the Core Capital (-)
Excess Amount in the Article 56, Clause 3 of the Banking Law (-)
Total Core Capital
Current Period
900.000 900.000 -
-
3.307 -
37.886 35.959 1.927 -
-
458.224 458.224 -
-
-
-
301.281 301.281 -
-
4.275 -
-
-
-
50.616 8.840 10.224 -
-
1.635.293 Prior Period
900.000
900.000
3.307
25.561
23.634
1.927
224.020
224.020
246.529
246.529
4.275
8.131
6.332
1.389.229
113
SUPPLEMENTARY CAPITAL
Current Period
General Loan Loss Provision
49.393 45% of the Revaluation Reserve for Movable Fixed Assets -
45% of the Revaluation Reserve for Properties -
Bonus Shares Obtained from Associates, Subsidiaries and Entities Under Common Control
-
Primary Subordinated Loans Excluded in The Calculation of the Core Capital -
Secondary Subordinated Loans -
Marketable Securities Value Increase Fund 45%
1.314 Associates and Subsidiaries
-
Available for Sale Securities
1.314 Indexation Differences for Capital Reserves, Profit Reserves and Retained Earnings
(Except Indexation Differences for Legal Reserves, Statutory Reserves and Extraordinary Reserves)
-
Total Supplementary Capital
50.707 TIER III CAPITAL
-
CAPITAL 1.686.000 DEDUCTIONS FROM THE CAPITAL
266 Shareholdings of Banks and Financial Institutions (Domestic, Foreign) from which
the Bank Keeps Ten Percent or More of Capitals
34 Shareholdings of Banks and Financial Institutions (Domestic, Foreign) from which
the Bank Keeps Less than Ten Percent of Capitals which Exceed Ten Percent of Bank’s
Core And Supplementary Capital -
Secondary Subordinated Loans Granted to Banks and Financial Institutions (Domestic,
Foreign) or Qualified Shareholders and Placements That Possess the Nature of Their Primary
or Secondary Subordinated Debt
-
Loans Granted Being Non-Compliant with the Articles 50 and 51 of the Banking Law
-
The Net Book Value of Properties Exceeding Fifty Percent of Equity and Properties Held
for Sale and Properties and Commodity to be Disposed, Acquired in Exchange of Loans a
nd Receivables according to the Article 57 of the Banking Law and have not been
Disposed yet After 5 Years after Foreclosure
232 Other
-
TOTAL SHAREHOLDERS’ EQUITY
45.493
45.493
1.434.722
152
84
-
68
1.434.570
II. Explanations Related to Credit Risk
Credit worthiness of loan customers are monitored and semiannually and regularly reviewed by the Risk Monitoring Department of the Bank in
accordance with the Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated by Banks and Procedures and
Principles of Allocating Provisions”. The account statements are obtained based on the prevailing regulations. Credit limits are determined by the
Board of Directors, the Credit Committee of the Bank and the Credit Administration. The Bank obtains sufficient guarantees for its risks, comprising
of personal surety, real-estate mortgage, cash blockage and customer cheques.
For the derivative transactions and other similar positions of the Bank, operational limits are set by the Board of Directors and the transactions are
performed within these limits.
There are no options or any other similar transactions.
Indemnified non-cash loans are subject to the same risk weight with the overdue loans.
The Bank monitors restructured and rescheduled loans in accordance with the Communiqué on “Determining the Nature of Loan and Other
Receivable Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”. Financial position and business operation of
those customers are analyzed systematically and, principal and profit payments based on the restructured payment plan are monitored by the
corresponding departments.
As of December 31, 2009, the risk of the Bank from its top 100 cash loan customers share in total cash loans ratio is 46,57% (December 31, 2008:
38,86%).
114
As of December 31, 2009, the risk of the Bank from its top 100 non-cash loan customers share in total non-cash loan ratio is 46,62% (December
31, 2008: 45,77%).
As of December 31, 2009, the cash and non-cash receivables of the Bank from its top 100 loan customers share in total balance sheet assets and
non-cash loan ratio is 39,86% (December 31, 2008: 32,05%).
As of December 31, 2009 the Bank’s general provision amount for its credit risk is TRY 89.368 Thousand (December 31, 2008: TRY 72.286 Thousand).
Distribution of Credit Risk by Types of Borrowers and Geographical Concentration:
Loans to Banks
Loans to Real Person and Other Marketable
and Legal Entities Financial Institution
Securities (***)
Other Loans (**)
Current Prior
Current
Prior Current
Prior
Current Prior
Period
Period
Period
Period
Period
Period
Period
Period
Loans According to
Borrowers
7.962.432 6.018.740 100.324 744 160.553 30.035 12.260.238 12.865.747
Private Sector 6.854.661 5.084.072 163 744 3.889
30.035 10.562.645 11.811.395
Public Sector 12.051 7.521 -
- 156.571
-
-
Banks
-
-
100.161 -
-
-
1.572.945
924.791
Retail
1.095.720 927.147 -
-
-
-
124.648
129.561
Share Certificates
-
-
-
-
93
-
-
Information According to
Geographical Concentration
7.962.432 6.018.740 100.324 744 160.553 30.035 12.260.238 12.865.747
Domestic
7.720.332
5.959.325
163
744 156.571
- 10.692.378 11.798.954
European Union Countries
105.111
7.709
100.161
-
3.982
15.818
1.434.787
937.908
OECD Countries (*)
5.117
-
-
-
-
-
40.976
4.747
Off-Shore Banking Regions
112.451
174
-
-
-
-
13.265
USA, Canada
775
-
-
-
-
14.217
7.234
7.272
Other Countries
18.646
51.532
-
-
-
-
71.598
116.866
Total
7.962.432 6.018.740 100.324
744 160.553 30.035 12.260.238 12.865.747
(*) OECD countries other than European Union countries, USA and Canada.
(**) Includes non-cash loans, commitments and derivative transactions.
(***) Includes marketable securities designated at fair value through profit or loss, available-for-sale and held-to-maturity.
115
Information according to geographical concentration:
Assets
Liabilities Non-Cash LoansEquity Investments
Current Period – December 31, 2009
Domestic
10.980.324 9.605.691 8.733.493 -
252.579 76.203 66.518 -
OECD Countries (*)
7.576 11.292 16.416 -
Off-shore Banking Regions
112.451 21.106 13.265 -
USA, Canada
51.233 46.964 7.234 -
Other Countries
19.919 139.805 49.051 -
Associates, Subsidiaries and Entities Under
Common Control
-
-
-
184.873 Unallocated Assets/Liabilities (**)
-
-
-
-
Total
11.424.082 9.901.061 8.885.977 184.873 Prior Period – December 31, 2008
Domestic
7.805.387 6.186.643 10.072.831 -
48.204 158.570 95.066 -
OECD Countries (*)
5.312 7.415 5.380 -
Off-shore Banking Regions
174 81.919 -
-
USA, Canada
35.591 65.780 7.273 -
Other Countries
52.092 204.810 34.865 -
Common Control
-
-
-
-
-
-
-
Total
7.946.760 6.705.137 10.215.415 162.069 Net Profit
301.281
301.281
246.529
246.529
(**) Assets and liabilities that cannot be allocated on a coherent basis.
Sector concentration for cash loans:
Agriculture
Farming and Raising Livestock
Forestry, Wood and Paper
Fishery
Manufacturing
Mining and Quarry
Production
Electricity, Gas and Water
Construction
Services
Wholesale and Retail Trade
Hotel, Tourism, Food and Beverage Services
Transportation and
Communication
Financial Institutions
Real Estate and Renting Services
Self-Employment Services
Education Services
Health and Social Services
Other
Total
TRY
131.208
93.908
31.023
6.277
3.265.977
294.079
2.439.245
532.653
1.475.039
1.381.412
406.557
172.054
286.818
117.937
176.019
16.294
46.275
159.458
1.176.839
7.430.475
Current PeriodPrior Period
(%)
FC
(%)
TRY
(%)
FC
1,76 12.782
2,02
86.254
1,51
11.064
1,26
10.245
1,62
58.439
1,02
10.374
0,42
-
-
17.726
0,31
496
0,08
2.537
0,40
10.089
0,18
194
43,96 246.420 38,97 2.609.840
45,39 119.449
3,96
67.589
10,69
136.267
2,37
2.927
32,83 126.293
19,97 2.089.322
36,34
116.522
7,17
52.538
8,31
384.251
6,68
-
19,85 114.173 18,06
877.605
15,27
53.412
18,60 258.906 40,95 1.185.544
20,63
86.432
5,47
63.542
10,05
300.063
5,22
27.555
2,32
-
-
208.005
3,62
29.720
3,86 172.354
27,26
263.816
1,59
-
-
45.922
2,37
-
-
179.849
0,22
4.306
0,68
15.331
0,62
18.704
2,81
45.985
2,15
-
0,15
126.573
15,83
-
-
989.571
100,00 632.281 100,00 5.748.814
4,59
0,80
3,13
0,27
0,80
2,20
17,20
100,00
14.315
-
667
4.363
9.812
-
313
270.670
(%)
4,08
3,83
0,18
0,07
44,13
1,08
43,05
19,73
31,94
10,18
10,98
5,29
0,25
1,61
3,63
0,12
100,00
116
The table below shows the maximum exposure to credit risk for the components of the financial statements:
The Central Bank of Turkish Republic
Due from Banks
Derivative Financial Assets Held for Trading
Loans
Finance Lease Receivables
Total
Contingent Liabilities
Commitments
Total
Total Credit Risk Exposure
Current Period
2.213.091 147.018 3.889 80.204
76.460
8.196.675 158.671 10.876.008 8.885.977 2.473.285 11.359.262 22.235.270 Prior Period
1.062.597
117.917
30.035
6.147.646
233.676
7.591.871
10.215.415
1.815.602
12.031.017
19.622.888
Credit Rating System:
The credit risk is assessed through the internal rating system of the Bank, by classifying loans from highest grade to lowest grade according to
the probability of default. As of December 31, 2009 consumer loans are excluded from the internal rating system of the Bank. Additional scoring
methodologies are applied for these loans. The risks that are subject to rating models can be allocated as follows:
Category
Description of Category
Above Average
The borrower has a very strong financial structure
Average
The borrower has an intermediate level of financial structure
Under Average
The financial structure of the borrower has to be closely monitored in the medium term
Not Graded
The borrower is not assessed by the Bank
Total
Share in the Total (%)
30%
34%
7%
29%
100%
III. Explanations Related to Market Risk
The amount subject to market risk is calculated and reported with the Standard Method described in Section 4 of the Communiqué on
“Measurement and Assessment of Banks’ Capital Adequacy” published in the Official Gazette No: 26333 dated November 1, 2006. Market risk is
measured on a monthly basis.
a) Information related to market risk:
(I) Capital Requirement to be Employed For General Market Risk - Standard Method (II) Capital Requirement to be Employed For Specific Risk - Standard Method (III) Capital Requirement to be Employed For Currency Risk - Standard Method (IV) Capital Requirement to be Employed For Commodity Risk - Standard Method (V) Capital Requirement to be Employed For Settlement Risk - Standard Method (VI) Total Capital Requirement to be Employed For Market Risk Resulting From Options - Standard Method
(VII) Total Capital Requirement to be Employed For Market Risk in Banks Using Risk Measurement Model (VIII) Total Capital Requirement to be Employed For Market Risk (I+II+III+IV+V+VI) (IX) Amount Subject to Market Risk (12,5 x VIII) or (12,5 x VII)
Amount
263
1.431
1.694
21.175
117
b)Average market risk table calculated at the end of each month in the current period:
Current Period
Average
Maximum
Minimum
Average
Interest Rate Risk (*)
14.675
29.350
-
6.730
Common Stock Risk
-
-
-
-
Currency Risk
44.250
85.213
3.288
28.663 Commodity Risk
-
-
-
-
Settlement Risk
-
-
-
-
Option Risk
-
-
-
-
Total Value Subject to Risk
58.925
114.563
3.288
35.393 Prior Period
Maximum
19.863 -
104.575 -
-
-
124.438 Minimum
264
9.275
9.539
(*) The Bank calculates by considering market risk of share certificates and forward transactions .
c) Other price risks:
The Bank does not share certificates investments, hence it is not subject to share price risk.
IV.Explanations Related to Operational Risk
The Bank calculates the amount subject to operational risk based on “Basic Indicator Method” by using 2008, 2007 and 2006 year end gross income
balances of the Bank, in accordance with the Section 4 of the “Regulation Regarding Measurement and Evaluation of Banks’ Capital Adequacy
Ratio” published in the Official Gazette No: 26333 dated November 1, 2006, namely “The Calculation of the Amount Subject to Operational Risk”.
V. Explanations Related to Currency Risk
Foreign currency risk indicates the probability of loss that banks are subject to due to the exchange rate changes in the market. While calculating
the share capital requirement, all foreign currency assets, liabilities and forward transactions of the Bank are taken into consideration and value at
risk is calculated by using the standard method.
The currency risk of the Bank is monitored on a daily basis. Net foreign currency position/capital ratio is also controlled using the same basis.
The Bank does not use any derivative instruments for hedging.
T he Standard Method stated in the statutory reporting is used to measure the currency risk of the Bank. The risk measurements with the context of
the Standard Method are performed on a monthly basis.
The announced current foreign exchange buying rates of the Bank as of December 31, 2009 and the previous five working days are as follows:
US Dollar
“FC Evaluation Rate” of the Bank
1,5057 Previously;
30.12.2009 (Day 1)
1,5026 29.12.2009 (Day 2)
1,5065 28.12.2009 (Day 3)
1,5052 25.12.2009 (Day 4)
1,5070 24.12.2009 (Day 5)
1,5186 December 31, 2009
Eur
Sterling Japanese Yen
2,1590 2,4212 1,6247
2,1547 2,3851 1,6296
2,1682 2,4089 1,6423
2,1667 2,4014 1,6475
2,1635 2,3997 1,6399
2,1740 2,4199 1,6547
The simple arithmetic averages of the major current foreign exchange buying rates of the Bank for the thirty days before the balance sheet date
are as follows; TRY 1,4983 per US Dollar, TRY 2,1855 per EUR, TRY 2,4296 per GBP and TRY 1,6628 per 100 JPY.
118
Information on the Foreign Currency Risk of the Bank: Foreign Currencies (Thousand TRY)
EUR
USD
YEN
Other
Current Period - December 31, 2009
Assets
Cash (Cash in Vault, Effectives, Money in Transit, Cheques Purchased)
and Balances with the Central Bank of Turkish Republic
286.246 1.041.455 -
37.912 Due from Banks 42.417 87.555 888 8.207 Financial Assets at Fair Value Through Profit and Loss (**)
-
-
-
-
Money Market Placements
-
-
-
-
-
-
-
-
Loans (*)
609.555 1.949.517 -
-
Subsidiaries, Associates and Entities Under Common Control
-
-
-
-
Held-to-Maturity Investments
-
-
-
-
Derivative Financial Assets for Hedging Purposes
-
-
-
-
Tangible Assets
-
-
-
-
Intangible Assets
-
-
-
-
Other Assets
23 204 -
-
Total Assets
938.241 3.078.731 888 46.119 Liabilities
Current and Profit Sharing Accounts of Banks
607 1.128 -
8
Current and Profit Sharing Accounts 870.094 2.239.791 315 44.810 Money Market Borrowings
-
-
-
-
Funds Provided from Other Financial Institutions
58.389 133.072 -
-
Marketable Securities Issued
-
-
-
-
Sundry Creditors
223 2.011 -
-
Derivative Financial Liabilities for Hedging Purposes
-
-
-
-
Other Liabilities (**)
8.067 8.912 5
58 Total Liabilities
937.380 2.384.914 320 44.876 Net Balance Sheet Position
861 693.817 568 1.243 Net Off-Balance Sheet Position
2.159 (689.605)
(579)
(60)
Financial Derivative Assets (***)
4.318 3.046 171 60 Financial Derivative Liabilities (***)
2.159 692.651 750 120 Non-Cash Loans (****)
1.450.841 3.320.841 37.080 92.697 Prior Period - December 31, 2008
Total Assets
774.089
2.291.042
3.888
55.175
Total Liabilities
718.664
1.936.069
4.096
52.107
Net Balance Sheet Position
55.425
354.973
(208)
3.068
Net Off-Balance Sheet Position
(44.791)
(353.249)
-
(30)
Financial Derivative Assets
-
2.141
-
-
Financial Derivative Liabilities 44.791
355.390
-
30
Non-Cash Loans (****)
1.735.286
3.668.940
76.844
133.538
Total
1.365.613
139.067
2.559.072
227
4.063.979
1.743
3.155.010
191.461
2.234
17.042
3.367.490
696.489
(688.085)
7.595
695.680
4.901.459
3.124.194
2.710.936
413.258
(398.070)
2.141
400.211
5.614.608
(*) TRY 1.892.285 Thousand of foreign currency indexed loan is also shown under this line (December 31, 2008: TRY 2.299.915 Thousand).
(**) In accordance with the principles of the Regulations on the “Measurement and Practices of Bank’s Net Overall FX position Shareholders’ Equity
Ratio on a consolidated and unconsolidated Basis”, general reserves recorded to expense accounts amounting to TRY 10.494 Thousand (December
31, 2008: TRY 10.011 Thousand) in assets and income accrual from derivative financial instruments amounting to TRY 3.889 Thousand (December
31, 2008: TRY 30.035 Thousand) in liabilities and expense accrual from derivate financial instruments amounting to TRY 155 Thousand (December
31, 2008:-), are not taken into consideration in the currency risk calculation.
(***) Forward asset purchase-sale commitments of TRY 7.595 Thousand is added to derivative financial assets and TRY 246.981 is added to
derivative financial liabilities (December 31, 2008: TRY 2.141 Thousand is added to derivative financial assets and TRY 3.675 is added to derivative
financial liabilities).
(****) The related balances do not have any effect on the currency risk position.
119
Foreign currency sensitivity:
The Bank is mainly exposed to USD and EUR currency risks.
The following table details the Bank’s sensitivity to a 10% increase and decrease in the TRY against USD and EUR. 10% is the sensitivity rate used
when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the possible change in
foreign exchange rates. A positive number indicates an increase in profit or loss and other equity in the case of short position and a decrease in the
case of long position where the TRY strengthens against USD and EUR.
Change in Currency Rate in %
USD
10 % increase
USD
10 % decrease
EUR
10 % increase
EUR
10 % decrease
Effect on Profit or Loss
Effect on Equity
Current Period
Prior Period Current Period
Prior Period
421
173
-
(421)
(173)
-
302
1.064
-
(302)
(1.064)
-
-
Forward foreign exchange transaction contracts:
The following table details the forward foreign currency contracts outstanding as of the balance sheet date:
Purchase Contracts
Sales Contracts
Fair Value
Average Exchange Rate
Original Amount
Original Amount
TRY
Current
Prior
Current
Prior
Current
Prior
Current
Prior
Outstanding Contracts (*)
Period
Period
Period
Period
Period
Period
Period
Period
Swap Transactions
TRY Purchase-EUR Sale
Less than 3 Months
-
2,1863
-
43.725
-
20.000
-
347
TRY Purchase-USD Sale
Less than 3 Months
1,5142
1,7472 452.278 130.895
298.000
75.000
3.028
14.705
Between 3-6 Months
-
1,6516
-
256.598
-
155.000
-
14.190
Forward Transactions
Less than 3 Months
-
1,7440
-
6.976
-
4.000
-
793
Other Term Foreign Exchange Transactions (**) TRY purchase-USD sale
Less than 3 months
1,5013 1,5365 240.277 1.536 159.000 1.000 687 USD Purchase-EUR Sale
Less than 3 Months
1,4429 1,3954 1.443 1.395 1.000 1.000 14 EUR Purchase-USD Sale
Less than 3 Months
1,4321 -
2.000 -
2.864 -
5
USD Purchase-JPY Sale
Less than 3 Months
92,369 -
500 -
46.184 -
-
JPY Purchase-USD Sale
Less than 3 Months
91,770 -
10.509 -
114 -
-
USD purchase-DKK sale
Less than 3 months
5,1870 5,2583 80 20 415 105 -
DKK purchase- sale
Less than 3 months
5,1840 -
207 -
40 -
-
(*) Maturity dates on the table are set based on the agreement period.
(**) It is presented in commitments within off balance sheet liabilities.
120
VI.Explanations Related to Interest Rate Risk
Since the Bank has interest-free banking operations, it does not have any interest sensitive asset or liability and consequently, it does not have any
interest rate risk.
VII.Explanations Related to Liquidity Risk
In order to avoid the liquidity risk, the Bank diversifies its funding resources as customer deposits and foreign borrowings, considers the maturity
match between assets and liabilities, focuses on strategies especially for the provision of long-term resources and retains its liquid assets in order
to provide sufficient liquidity in any market fluctuations.
Maturity structure of the TRY and FC deposits, cost and change in the total amount are monitored on daily basis by considering the past
developments and future expectations.
The Bank’s policy is to establish an asset structure that primarily meets all kinds of liabilities by using liquid resources. The Board of Directors of the
Bank determines a standard for the liquidity ratios, and applies the standard on a regular basis in order to ensure.
The table below gives a summary of the liquidity ratio of the Bank:
Current Period
Average (%)
Highest (%)
Lowest (%)
1st Term Period (Weekly)
192,55 233,06 161,13 2nd Term Period (Monthly)
141,96
165,89
121,42
Prior Period
Average (%)
Highest (%)
Lowest (%)
1st Term Period (Weekly)
161,97 218,26 130,34 2nd Term Period (Monthly)
110,42
125,10
100,34
121
Presentation of Assets and Liabilities According to Their Maturities:
Current Period- Up to 1
3-12
Over
December 31, 2009 Demand
Month1-3 Months Months 1-5 Years
5 Years Undistributed (*)
Total
Assets
Cash (Cash in Vault, Effectives,
Money in Transit, Cheques Purchased)
and Balances with the Central
Bank of Turkish Republic
1.042.463 1.302.545 -
-
-
-
- 2.345.008
Due from Banks 136.763 10.255 -
-
-
-
-
147.018
Financial Assets at Fair Value
Through Profit and Loss
-
3.889 -
-
-
-
-
3.889
-
-
-
-
-
-
-
-
-
-
55.111 25.000 -
93 80.204
Loans (**)
- 1.605.399 1.239.467 2.700.780 2.533.253 142.528 - 8.221.427
-
-
-
51.460 25.000 -
-
76.460
Other Assets
-
71.195 -
-
-
-
663.754 734.949
Total Assets
1.179.226 2.993.283 1.239.467 2.807.351 2.583.253 142.528 663.847 11.608.955
Liabilities Current and Profit Sharing
Accounts of Banks
1.990 -
-
-
-
-
-
1.990
Current and Profit Sharing
Accounts
1.590.828 3.608.702 1.551.155 2.383.891 12 -
- 9.134.588
Funds Provided from Other
Financial Instruments
-
15.195 29.217 80.081 64.556 2.412 -
191.461
Money Market Borrowings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sundry Creditors
30.995 170.149 -
-
-
-
-
201.144
Other Liabilities (***)
- 183.862 -
-
-
-
1.895.910 2.079.772
Total Liabilities
1.623.813 3.977.908 1.580.372 2.463.972
64.568 2.412 1.895.910 11.608.955
Net Liquidity Gap
(444.587) (984.625) (340.905) 343.379 2.518.685 140.116 (1.232.063)
Prior Period - December 31, 2008 Total Assets
825.390 1.289.351 639.629 2.112.277 2.550.847
133.974
557.361 8.108.829
Total Liabilities
1.023.766 2.916.392 995.733 1.528.257 90.744 1.875 1.552.062 8.108.829
Net Liquidity Gap
(198.376)(1.627.041) (356.104) 584.020 2.460.103 132.099 (994.701)
(*) Certain assets in the balance sheet that are necessary for the banking operations but cannot be readily convertible into cash in the near future
such as tangible assets, investments in associates and subsidiaries, stationary supplies, prepaid expenses and non-performing loans are included in
this column.
(**) Loans include Finance Lease Receivables balance.
(***) Equity is presented in the “Undistributed” column under “Other Liabilities”.
122
Analysis of financial liabilities based on the remaining contractual maturities:
The table below is drawn up based on the undiscounted contractual maturities of the financial assets and liabilities. Profit share expenses to be
paid on such liabilities are included in this table. “Adjustments” column indicates items that may lead to potential cash flows in the following
period. These items are included in maturity analysis, but not included in the balance sheet value of such financial liabilities.
Up to 1
1-3
3-12
Demand
Month Months Months 1-5 Years Over 5 Year Adjustments
Total
December 31, 2009
Funds Collected
1.592.818
3.608.702 1.551.155
2.383.891
12
-
- 9.136.578
Funds Borrowed
-
15.666
30.634
84.806
68.538
2.453
(10.636)
191.461
Total
1.592.818 3.624.368 1.581.789
2.468.697
68.550
2.453
(10.636) 9.328.039
December 31, 2008
Funds Collected
1.006.850
2.648.607 916.498
1.253.016
17.850
-
- 5.842.821
Funds Borrowed
-
30.940
80.657
285.514
64.188
1.983
(5.730)
457.552
Total 1.006.850 2.679.547 997.155 1.538.530
82.038
1.983
(5.730) 6.300.373
Analysis of contractual expiry by maturity of the Bank’s derivative financial instruments:
Up to 1 Month 1-3 Months 3-12 Months
1-5 Years Over 5 Year
December 31, 2009
Derivative Financial Instruments
for Hedging Purposes
Fair Value Hedge
-
-
-
-
-
Held for Trading Transactions
Forward Sales Contracts
-
-
-
-
-
Swap Sales Contracts
448.699
-
-
-
-
Total
448.699
-
-
-
-
Up to 1Month 1-3 Months 3-12 Months
1-5 Years Over 5 Year
December 31, 2008
Derivative Financial Instruments
for Hedging Purposes
Fair Value Hedge
-
-
-
-
-
-
6.049
-
-
-
-
156.080
234.407
-
-
Total
-
162.129
234.407
-
-
As the loan portfolio has fixed profit sharing rates, estimated fair value is calculated by using the discounted cash flows.
Total
448.699
448.699
Total
6.049
390.487
396.536
123
The table below summarizes the book value and fair value of the financial assets and liabilities. Book value is the sum of the acquisition value and
accumulated profit share accruals.
Financial Assets
Banks and Other Financial Institutions (*)
Financial Assets Available For Sale (**)
Loans (***) (*****)
Financial Liabilities
Funds Collected (****)
Other Current and Profit Sharing
Accounts (****)
Funds Provided From Other Financial
Institutions
Issued Securities
Finance Lease Payables
Sundry Creditors
Book Value
Fair Value
Current Period
Prior Period
10.738.200 7.433.674 11.395.123 7.747.900
-
-
-
2.360.109 1.180.514 2.360.109 1.180.514
80.204 -
80.204
76.460 -
80.111
8.221.427 6.253.160 8.874. 699
6.567.386
9.529.183 6.451.156 9.528.521 6.449.462
1.990 3.147 1.990 3.147
9.134.588 5.839.674 9.134.588 5.839.674
191.461 -
-
201.144 457.552 -
6
150.777 190.799 -
-
201.144 455.858
6
150.777
(*) As receivables from banks and other financial institutions are in short-term nature, their fair value approximates to their book value.
(**) Amounting to TRY 93 Thousand of share certificates within financial asset available for sale is reflected to financial statements as cost by the
reason of not trading an active market.
(***) In order to calculate the fair value of loans, current profit sharing rates are used as of the balance sheet date. Loan balance also
includes finance lease receivables. Fair value of loans is calculated under the assumption that all installments are distributed equally.
(****) Book value of the funds collected approximates to their fair value as it is revalued with the year end unit value.
(*****) Net balance of follow up loans is not included.
The following table shows an analysis of financial instruments recorded at fair value, between those whose fair value is recorded on quoted market
prices, those involving valuation techniques where all model inputs are observable in the market and, those where the valuation techniques
involves the use of non observable inputs:
December 31, 2009
1st Level TRY
2nd Level TRY
Financial Assets
Financial Assets at Fair Value Through Profit and Loss
-
3.889
Financial Assets Available for Sale
-
80.111
Total
-
84.000
Financial Liabilities at Fair Value Through Profit and Loss
-
155
Other Financial Liabilities
-
-
Total
-
155
3rd Level TRY (*)
93
93
-
(*) Equity shares classified as available for sale assets amounting to TRY 93 Thousand which are not traded in an active market have been
accounted at cost and presented as 3rd level in this table.
December 31, 2008
1st Level TRY
2nd Level TRY
Financial Assets
-
30.035
Financial Assets Available For Sale
-
-
Total
-
30.035
-
-
-
-
Total
-
-
3rd Level TRY
-
124
Beginning and ending term reconciliation of financial assets and liabilities appreciated at 3rd level is stated as below:
Opening Balance
Total Loss/Income
Profit/Loss Reflected
Profit and Loss Accounted Under Equity
Purchases
Issued
Accrued
Transfers from 3rd Level to Other Level Ending Balance
Held for Trading Derivative Financial Instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share Certificates
Total
-
-
-
-
93
93
-
-
-
93
93
IX.Explanations Related to Transactions Carried out on Behalf of Other Parties and Fiduciary Assets
The Bank does not deal with fiduciary operations or transactions made on behalf of others.
SECTION FIVE
EXPLANATIONS AND DISCLOSURES ON THE UNCONSOLIDATED FINANCIAL STATEMENTS
I. Explanations and Disclosures Related to the Assets
1.Information on Cash and Balances with the Central Bank of Turkish Republic
1.1. Information on Cash:
Cash/Foreign Currency
Other
Total
Current Period
TRY
FC
64.154 67.010 914.489 1.298.602 752 1
979.395 1.365.613 TRY
38.945
647.130
622
686.697
Prior Period
Current Period
TRY
FC
914.489 1.097.509 -
-
-
-
-
201.093 914.489 1.298.602 Prior Period
TRY
FC
647.130 253.653
-
-
-
161.814
647.130 415.467
FC
27.395
415.467
10
442.872
1.2. Information on the Central Bank of Turkish Republic Accounts:
Unrestricted Demand Deposit
Unrestricted Time Deposit
Restricted Time Deposit
Other (*)
Total
(*) Represents the reserve deposit held in the Central Bank of Turkish Republic in relation to foreign currency liabilities.
2.Information on Financial Assets at Fair Value through Profit and Loss
2.1. Information on Financial Assets at Fair Value Through Profit and Loss Blocked/Given as a Collateral or Subject to Repurchase
Agreements:
None.
125
2.2.Positive Differences Related to Derivative Financial Assets Held-for-Trading:
Forward Transactions Swap Transactions
Futures Transactions
Options
Other Total
Current Period
TRY
FC
-
861
-
3.028
-
-
-
-
-
-
-
3.889
Prior Period
TRY
FC
-
793
-
29.242
-
-
-
-
30.035
Current Period
TRY
FC
7.951 139.067 7.951 41.552 -
97.515 -
-
7.951 139.067 Prior Period
TRY
FC
10.058 107.859
10.058 55.936
-
51.923
-
10.058 107.859
3. Information on Banks
3.1. Information on Banks:
Banks
Domestic
Foreign Branches and Head Office Abroad
Total
3.2. Information on Foreign Bank Accounts:
USA and Canada
OECD Countries (*)
Other
Total
Unrestricted Amount
Restricted Amount
Current Period
Prior Period
43.325 24.678 -
50.458 21.373 -
2.459 5.312 -
-
-
-
1.273 560 -
97.515 51.923 -
-
4.Information on Financial Assets Available for Sale
4.1. Information on Available for Sale Financial Assets Blocked/Given as a Collateral or Subject to Repurchase Agreements:
None.
4.2.Information on Financial Assets Available for Sale:
The Bank has TRY 80.111 Thousand revenue sharing certificate as of December 31, 2009.
Debt Securities
Quoted on a Stock Exchange
Not Quoted
Share Certificates
Not Quoted
Impairment Provision (-)
Total
Current Period
80.111
-
80.111
93
-
93
-
80.204
Prior Period
-
126
5. Information on Loans
5.1. Information on All Types of Loans and Advances Given to Shareholders and Employees of the Bank:
Direct Loans Granted to Shareholders
Corporate Shareholders
Real Person Shareholders
Indirect Loans Granted to Shareholders
Loans Granted to Employees Total
Current Period Cash Non-Cash 156.604 8.471 54.020 8.193 102.584 278 64.310 60.020 6.500 -
Cash Non-Cash
30.901 3.847
17.944 3.529
12.957 318
57.919 55.142
5.642 94.462 58.989
5.2.Information on First and Second Group Loans and Other Receivables Including Restructured or Rescheduled Loans:
Standard Loans and
Loans and Other Receivables
Other Receivables
Under Close Monitoring
Loans and Restructured or
Loans and
Restructured or
Cash Loans
Other Receivables
Rescheduled
Other Receivables
Rescheduled
Loans
Discount Notes
-
-
-
Export Loans
660.502 80.418 2.142 393.637
Import Loans
48.449 -
-
Business Loans
5.060.081 -
126.122 9.648
Consumer Loans
454.788 711 12.596 8.822
Credit Cards
580.095 -
24.561 46.224
Investments on Profit/Loss Partnership
-
-
-
Precious Metals Loans -
-
-
Loans Given to Financial Sector
163 -
-
International Loans
257.795 -
14.682 69.784
Other
128.796 5.898 68.013 8.829
Other Receivables (*)
-
-
-
Total
7.190.669 87.027 248.116 536.944
(*) In addition to the balances mentioned in the table above, the Bank has TRY 2.410 Thousand of leasing receivables followed under the watch list
(December 31, 2008 TRY 24.506 Thousand).
5.3. Loan Distribution Based on the Maturity Structure:
Standard Loans andLoans and Other
Other Receivables Under Close Monitoring
Loans and Restructured or
Loans and
Restructured or
Other Receivables
Rescheduled
Other Receivables
Rescheduled
Short-Term Loans and Other Receivables
3.243.829 6.616 133.152 55.634
Loans
3.243.829 6.616 133.152 55.634
Other Receivables
-
-
-
Medium-Term and Long-Term Loans
3.946.840 80.411 114.964 481.310
Loans
3.946.840 80.411 114.964 481.310
Other Receivables
-
-
-
-
127
5.4.Information on Consumer Loans, Retail Credit Cards, Loans Given to Personnel and Personnel Credit Cards:
Consumer Loans-TRY
Housing Loans
Vehicle Loans
Consumer Loans
Other Consumer Loans-FC Indexed
Housing Loans
Vehicle Loans
Consumer Loans
Other Consumer Loans-FC
Housing Loans
Vehicle Loans
Consumer Loans
Other Retail Credit Cards-TRY
With Installments
Without Installment
Retail Credit Cards-FC
With Installments
Without Installment
Personnel Loans-TRY
Housing Loans
Vehicle Loans
Consumer Loans
Other Personnel Loans-FC Indexed
Housing Loans
Vehicle Loans
Consumer Loans
Other Personnel Loans-FC
Housing Loans
Vehicle Loans
Consumer Loans
Other Personnel Credit Cards-TRY
With Installments
Without Installment
Personnel Credit Cards-FC
With Installments
Without Installment
Overdraft Account-TRY(Real Person) Overdraft Account-FC (Real Person)
Total
Short Term
15.426
8.809
3.790
979
1.848
1.170
1.170
-
-
-
-
-
-
-
-
607.968
111.595
496.373
-
-
-
326
21
194
111
-
5
5
-
-
-
-
-
-
-
-
2.120
1.058
1.062
-
-
-
-
-
627.015
Medium-term and Long-Term
442.004
405.565
33.536
2.903
-
13.985
12.517
1.367
101
-
-
-
-
-
-
8.667
8.667
-
-
-
-
3.869
1.632
1.869
368
-
132
123
-
9
-
-
-
-
-
-
48
48
-
-
-
-
-
-
468.705
Total
457.430
414.374
37.326
3.882
1.848
15.155
13.687
1.367
101
616.635
120.262
496.373
4.195
1.653
2.063
479
137
128
9
2.168
1.106
1.062
1.095.720
128
5.5.Informations on Installment Basis Commercial Loans and Corporate Credit Cards:
Installment Commercial Loans-TRY
Business Loans
Vehicle Loans
General Purpose Loans
Other
Installment Commercial Loans-FC Indexed
Business Loans
Vehicle Loans
Other
Installment Commercial Loans-FC
Business Loans
Vehicle Loans
Other
Corporate Credit Cards-TRY
With Installments
Without Installment
Corporate Credit Cards-FC
With Installments
Without Installments
Overdraft Account-TRY(Legal Entity)
Overdraft Account-FC (Legal Entity)
Total
Short Term
54.949 18 346 -
54.585 -
-
-
-
-
-
-
-
-
-
32.007 2.591 29.416 -
-
-
-
-
86.956 Medium-term and Long Term
6.221 2.065 4.156 -
-
-
-
-
-
-
-
-
-
-
-
70 70 -
-
-
-
-
-
6.291 Total
61.170
2.083
4.502
54.585
32.077
2.661
29.416
93.247
5.6.Loan Distribution According to Borrowers:
Public Sector
Private Sector
Total
Current Period
12.051
8.050.705
8.062.756
Prior Period
7.521
6.011.963
6.019.484
Current Period
7.720.495
342.261
8.062.756
Prior Period
5.960.069
59.415
6.019.484
Current Period
52.357
-
52.357
Prior Period
63.903
63.903
5.7. Domestic and Foreign Loans:
Domestic Loans
Foreign Loans
Total 5.8. Loans Granted to Subsidiaries and Associates:
Loans Granted to Subsidiaries and Associates Directly
Loans Granted to Subsidiaries and Associates Indirectly Total Bank Asya Annual Report 2009
129
5.9. Specific Provisions Provided Against Loans:
Loans and Receivables with Limited Collectibility
Loans and Receivables with Doubtful Collectibility
Uncollectible Loans and Receivables
Total
Current Period
21.500
70.985
229.806
322.291
Prior Period
25.294
51.994
119.298
196.586
5.10.Informations on Non-Performing Loans (Net):
5.10.1.Informations on Loans and Other Receivables included in the Non-Performing Loans which are Restructured or Rescheduled:
Group III
Group IV
Group V
Loans and Receivables Loans and Receivables Uncollectible Loans
with Limited Collectibility with Doubtful Collectability
and Receivables
Current Period
(Gross Amount Before Specific Provision)
2.083
6.931
9.192
Restructured Loans and Other Receivables
1.509
4.105
8.386
Rescheduled Loans and Other Receivables 574
2.826
806
Prior Period
1.008 5.358 15.924
-
-
Rescheduled Loans and Other Receivables 1.008 5.358 15.924
5.10.2. Informations on Movement of Non-Performing Loans:
Ending Balance of Prior Period
Additions in the Current Period (+)
Inflows from Other Overdue Loans Account (+)
Outflows to Other Overdue Loans Account (-)
Collections in the Current Period (-)
Write offs (-)
Corporate and Commercial Loans
Retail Loans
Credit Cards
Other
Ending Balance of the Current Period
Specific Provisions (-)
Net Balance at the Balance Sheet
Group III
Group IV
Group V
and Receivables
52.038 113.005 159.705
330.612 122.395 91.583
-
206.399 152.662
(206.399)
(152.662)
(133.597)
(161.686)
(69.510)
-
(1.827)
(46.508)
-
(76)
(31.232)
-
(79)
(2.209)
-
(1.012)
(12.667)
-
(660)
(400)
42.654 125.624 287.932
(21.500)
(70.985)
(229.806)
21.154 54.639 58.126
130
5.10.3.Informations on Foreign Currency Non-Performing Loans and Other Receivables:
Group III
Group IV
Group V
and Receivables
Current Period
Ending Balance -
260
1.590
-
(130)
(1.078)
-
130
512
Prior Period Ending Balance 66 -
1.887
(13) -
(621)
53 -
1.266
5.10.4.Gross and Net Amounts of Non-Performing Loans with Respect to User Groups:
Group III
Group IV
Group V
and Receivables
Current Period (Net)
Loans to Real Persons and Legal Entities (Gross)
42.654
125.624
287.932
(21.500)
(70.985)
(229.806)
Loans to Real Persons and Legal Entities (Net)
21.154
54.639
58.126
Banks (Gross)
-
-
-
-
Banks (Net)
-
-
Other Loans and Receivables (Gross)
-
-
-
-
Other Loans and Receivables (Net)
-
-
Prior Period (Net)
Loans to Real Persons and Legal Entities (Gross)
52.038
113.005
159.705
(25.294)
(51.994)
(119.298)
Loans to Real Persons and Legal Entities (Net)
26.744
61.011
40.407
Banks (Gross)
-
-
-
-
Banks (Net)
-
-
-
-
-
-
-
-
5.10.5.Non-Performing Loans and Main Guidelines of Liquidation Process for Loans and Receivables:
If the Bank has collateral components stated in Article 9 of the Communiqué on “Determining the Nature of Loan and Other Receivable Provisions
Allocated by Banks and Procedures and Principles of Allocating Provisions”, such components are immediately liquidated by applying managerial or
legal procedures. In the absence of collateral component, even if there is an indication of insolvency, the Bank reviews the financial intelligence of
the debtor systematically to determine subsequently acquired property holdings and applies the legal procedures.
Prior and subsequent to the legal procedures, as a result of reviews performed regarding the financial information provided, the Bank intends to
liquidate its loans and other receivables from the companies that have potential development in the production and consequent contribution to
the economy by means of the rescheduled agreements.
5.10.6. Explanation on Write–off Policy:
Provision allocations arising from during or after the transfer of any loan receivables to “Non-performing loans” are performed by the Bank’s Loan
Monitoring Department within the framework of the Banking Regulations and Supervisory Agency. Additionally, loans are written-off of against
131
the assets, at least once a year, by the Credit Monitoring Agency to the extent that at least one of the following below is met and provision is fully
made for all non-performing loans in accordance with the decision made by the Board of Directors:
- Receivables are classified as unrecoverable;
- If receivables are classified as unrecoverable, specific documents should be obtained from the
Collections Agency; or
- The Law Department remarks that there are still uncollectible receivables although the execution proceedings are in progress.
5.10.7.Other Explanations and Disclosures:
The information related to loan quality is stated as below:
Neither past due nor
Impaired
Loans (*)
Corporate and Commercial Lending 4.534.779 Small Business Lending 1.707.323 Consumer Lending
455.499 Credit Cards
580.095 Total
7.277.696 Past due, not
Impaired
Past due,
Impaired (**)
Total
437.711 255.146 21.418 70.785 785.060 143.198 203.869 10.129 99.014 456.210 5.115.688
2.166.338
487.046
749.894
8.518.966
(*) The Bank classifies small medium entities (“SME”) considering the criteria set out in the Council of Ministers’ decision dated November 18, 2005
and numbered 25997 published in the Official Gazette and the Communiqué on “Descriptions, Nature and Classification of Small Medium Entities”.
(**) The balance also comprises of impaired finance lease receivables and loans.
Neither past due nor
Prior Period – December 31, 2008
Impaired
Loans (*)
Corporate and Commercial Lending 2.992.721 Small Business Lending 1.427.311 Consumer Lending
376.405 Credit Cards
520.093 Total
5.316.530 Past due, not
Impaired
Past due,
Impaired (**)
Total
379.956 254.269 22.082 46.647 702.954 128.952 137.985 10.539 47.272 324.748 3.501.629
1.819.565
409.026
614.012
6.344.232
(*) The Bank classifies small medium entities (“SME”) considering the criteria set out in the Council of Ministers’ decision dated November 18, 2005
and numbered 25997 published in the Official Gazette and the Communiqué on “Descriptions, Nature and Classification of Small Medium Entities”.
The details of loan guarantees and leasing portfolio are stated as below:
Current Period (*) (**) (***)
Group I Loans Group II Loans Group III Loans Group IV Loans Group V Loans
Total
Residential, Commercial or Industrial Property
2.160.280 305.954 9.223 32.371 69.270 2.577.098
Financial Assets
301.626 90.609 -
-
- 392.235
Other
649.005 202.145 534 3.494 48.104 903.282
Total
3.110.911 598.708 9.757 35.865 117.374 3.872.615
(*) Individual loan agreements, general loan agreements, foreign currency cheques, suretyships, customer cheques and notes and other guarantees
are not included in the table above.
(**) The table above is prepared by taking into consideration the lowest value presented as a result of the comparison made between the
outstanding loan balance as of the balance sheet date and the lower of the net amount reached at the fair value of collaterals stated in the
corresponding expertise reports or the net collateral amount less any pledges or incumbrances on such amounts, if any.
(***) Guarantee details of the credit portfolio are determined based on the “Measurement and Assessment of Capital Adequacy of Banks” published
on November 1, 2006 in the Official Gazette numbered 26333.
132
Prior Period (*) (**) (***)
Total
Residential, Commercial or Industrial Property
1.799.114 319.446 15.561 29.158 50.276 2.213.555
Financial Assets
172.753 58.461 -
121 - 231.335
Other
390.233 69.386
1.525 2.243 43.774 507.161
Total 2.362.100 447.293 17.086 31.522 94.050 2.952.051
Aging analysis of past due but not impaired loans per classes of financial statements is stated as below:
Less than 30 Days (*)
31-60 Days
61-90 Days More than 91 Days
Loans and Advances to Customers
Corporate Lending
386.028 31.935 19.748 -
SME Lending 200.919 33.840 20.387 -
Consumer Lending
6.031 11.653 3.734 -
Credit Cards
51.194 14.666 4.925 -
Leasing Receivables
1.092 13 1.305 -
Total
645.264 92.107 50.099 -
Total
437.711
255.146
21.418
70.785
2.410
787.470
(*) The Bank follows up the entire loan balance having less than 30 days overdue in the watch list based on conservatism principal and TRY 558.567
Thousand of such amount does not have payment overdue as of December 31, 2009 (Finance Lease TRY 1.082 Thousand).
31-60 Days
Loans and Advances to Customers
Corporate Lending
299.597 48.323 32.036 -
SME Lending 109.993 101.227 43.049 -
Consumer Lending
347 15.638 6.097 -
Credit Cards
29.782 16.865 -
-
Leasing Receivables
5.006 6.616 12.884 -
Total
444.725 188.669 94.066 -
Total
379.956
254.269
22.082
46.647
24.506
727.460
(*) The Bank follows up the entire loan balance having less than 30 days overdue in the watch list based on conservatism principal and TRY 232.698
Thousand of such amount does not have payment overdue as of December 31, 2008 (Finance Lease TRY 3.767 Thousand).
6. Informations on Held-to-Maturity Investments (Net)
6.1. Informations on Financial Assets Blocked/Given as Collateral or Subject to Repurchase Agreements:
None.
133
6.2. Informations on Government Bonds Classified as Held- to-Maturity Investments:
The Bank has TRY 76.460 Thousand of revenue sharing certificate as of December 31, 2009.
Share Certificates
Bonds, Treasury Bill and Similar Securities
Other
Total
Current Period
TRY
FC
-
-
-
-
76.460
-
76.460
-
TRY
-
-
-
-
Prior Period
Current Period
TRY
FC
-
-
-
-
76.460
-
-
-
76.460
-
TRY
-
-
-
-
-
FC
-
6.3. Informations on Investments Held-to-Maturity:
Debt Securities
Not Quoted
Total
Prior Period
FC
-
6.4. Movement of Held-to-Maturity Investments:
Beginning Balance
Foreign Currency Differences on Monetary Assets
Purchases During Year
Disposals Through Sales and Redemptions
Valuation Effects
Closing Balance
Current Period
-
-
75.000
-
-
1.460
76.460
Prior Period
-
7. Informations on Associates (Net)
7.1. Informations on Associates:
(1)
(2)
(2)
Company Name
Yeni Mağazacılık A.Ş. (*)
Landmark Holding A.Ş. (*)
Kredi Garanti Fonu A.Ş. (**)
Address (City/Country)
İstanbul/Turkey
İstanbul/Turkey
Ankara/Turkey
Bank’s Share Percentage, Bank’s Risk Group Share
If Different-Voting Percentage (%)
Percentage (%)
21,84%
21,84%
21,84%
21,84%
1,67%
1,67%
(*) The Bank participated in Yeni Mağazacılık A.Ş. and in Landmark Holding A.Ş. with the Financing Method for Participation Banks explained in the
regulation No:19 regarding “Banks’ Lending Transactions” published and became effective in the Official Gazete numbered 26333, dated November
1, 2006 by means of joint investment method. These are recorded as associates in accordance with the Uniform Chart of Accounts published in the
Official Gazette numbered 26415 and dated January 26, 2007.
(**) In the Board of Directors meeting on June 25, 2009, the Bank has decided to participate in Kredi Garanti Fonu A.Ş. with the amount of up to
TRY 4.000 Thousand. Upon this decision related to the capital increase of Kredi Garanti Fonu A.Ş. on September 11, 2009, the Bank paid TRY 2.000
Thousand of its TRY 4.000 Thousand capital commitment on October 15, 2009.
134
7.2. Informations on Associates:
(1)
(2)
(*)Total Total Fixed Profit Share
Assets
Equity Assets
Income 96.607 (26.667)
29.432 -
45.017 44.866 24 25 Income
from Marketable Current Period
Securities Portfolio Profit/Loss
-
(89.975)
-
(931)
Prior Period
Profit/Loss
(55.237)
(389)
Fair Value
(**) 175.227
(***) 56.966
(*) Financial information is provided from the associate’s unaudited financial statements as of December 31, 2009.
(**) It is expertise value of the Bank’s associate, Yeni Mağazacılık A.Ş., as of February 4, 2010.
(**) It is expertise value of the Bank’s associate, Landmark Holding A.Ş., as of February 9, 2010.
7.3. Movement of Associates:
Balance at the Beginning of the Period
Movements In Period Purchases Free Shares Obtained
Dividends from Current Year Income
Sales
Revaluation Increase
Provision for Diminution in Value Balance at the End of the Period
Capital Commitments (*)
Share Percentage at the End of the Period (%)
Current Period
23.975 21.088 21.088 -
-
-
-
-
45.063 2.000 1,67%-21,84%
Prior Period
23.975
23.975
23.975
25%
(*) It is consists of capital commitment amounts of TRY 2.000 Thousand form Bank’s subsidiary, Kredi Garanti Fonu A.Ş.
7.4. Sectoral Informations on the Financial Associates and the Related Carrying Amounts:
Banks
Insurance Companies
Factoring Companies
Leasing Companies
Finance Companies
Other Subsidiaries
Current Period
-
-
-
-
-
45.063
Prior Period
23.975
8. Informations on Subsidiaries (Net)
8.1. Informations on Subsidiaries:
Company Name
(1)
Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti.
(2)
Nil Yönetim Hizmetleri Tur. San. ve Tic. A.Ş. (*)
(3)
Işık Sigorta A.Ş.
(3)
Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. (*)
(5)
Asya Kart Teknoloji Hizmetleri A.Ş.
Address Bank’s Share Percentage, (City/Country) If Different-Voting Percentage (%)
İstanbul/Turkey
95,00%
İstanbul/Turkey
99,93%
İstanbul/Turkey
65,42%
İstanbul/Turkey
22,94%
Istanbul/Turkey
99,50%
Bank’s Risk Group
Share Percentage (%)
95,00%
99,93%
65,42%
69,42%
99,50%
(*) Based on the announcement of Capital Markets Board of Turkey made on 13 August 2009, it has been permitted the transformation of affiliate
of the Parent Bank “Asyafin Turizm İnşaat San. A.Ş.” into “Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.” on March 27, 2009 under the Act No: 7/194,
and transformation procedures has started on September 30, 2009. As a consequence, “Asyafin Turz. İnş. San. A.Ş.” has been renamed as “Tuna
Gayrimenkul Yatırım Ortaklığı” while “Asyafin İnş. San. A.Ş.” has been renamed as “Nil Yönetim Hizmetleri Tur. San. ve Tic. A.Ş.”.
135
8.2. Informations on Subsidiaries:
(1)
(2)
(3)
(4)
(5)
(*)Total Total Fixed Profit Share
Assets
Equity Assets
Income 203 202 -
21 65.687 63.445 176 20 154.346 61.156 2.125 8.614 115.149 114.982 38.784 680 23 20 -
-
Income
from Marketable Current Period
Securities Portfolio Profit/Loss
-
11 -
118 13.950 7.728 -
(547)
-
(13)
Prior Period
Profit/Loss
9
(145)
(3.369)
(1.396)
(13)
Fair Value
(**) 190.616
(***) 192.051
-
(*) Financial information is provided from the unaudited financial statements of subsidiaries as December 31,2009..
(**) It is expertise value of the Bank’s associate, Işık Sigorta A.Ş., as of February 4, 2010.
(***) VAT excluded fair value is TRY 192.051 Thousand, including land, per expertise appraisal dated January 26, 2010.
8.3. Movement of Subsidiaries:
Movements in Period Purchases
Free Shares Obtained
Sales
Capital Commitments
Current Period
138.094 1.716 1.716 -
-
-
-
-
139.810 5.153 22,94%-99,93%
Prior Period
130.810
7.284
2.290
3.925
1.069
138.094
6.869
22,94%-99,93%
8.4. Sectoral Informations on the Financial Subsidiaries and the Related Carrying Amounts:
Subsidiaries
Banks
Insurance Companies
Factoring Companies
Leasing Companies
Finance Companies
Other Subsidiaries
8.5.Subsidiaries Quoted on the Stock Exchange:
None.
9.Informations on Entities Under Common Control
None.
Current Period
-
45.001
-
-
-
37.857
Prior Period
43.285
-
136
10.Informations on Finance Lease Receivables (Net)
10.1. Presentation of Remaining Maturities of Finance Leases Method:
Less than 1 Year
1 to 4 Years
More than 4 Years
Total
Current Period
Gross
Net
5.100 4.479 158.531 139.212 17.059 14.980 180.690 158.671 Prior Period
Gross
Net
19.867 17.532
238.083 210.106
6.841 6.038
264.791 233.676
Current Period
180.690
(22.019)
-
158.671
Prior Period
264.791
(31.115)
233.676
10.2. Informations on Net Investments in Finance Leases:
Gross Receivable from Finance Leases
Unearned Finance Lease Income (-)
Cancelled Amounts (-) Net Receivable from Finance Leases
11. Informations on Derivative Financial Assets for Hedging Purposes
None.
12. Informations on Tangible Assets
Leased Assets Held Other Tangible
Buildings
Tangible Assets
Vehicles
for Resale
Assets (*)
Cost
Opening Balance - January 1, 2009
11.553
39.926
1.560
110.843
128.295
Additions -
-
62
75.413
42.870
Disposals
-
(1.009)
(329)
(6.901)
(7.338)
Transfers (**)
-
-
-
10.399
-
Impairment (Losses)/Reversal
559
-
-
(2.890)
-
Ending Balance - December 31, 2009
12.112
38.917
1.293
186.864
163.827
Accumulated Depreciation (-)
1.795
14.572
600
1.533
47.051
Depreciation Expense
308
7.932
240
2.965
24.410
Accumulated Depreciation of Tangible
Assets Held for Resale -
(872)
(137)
(372)
(6.931)
Transfers
-
-
-
64
-
24
-
-
(63)
-
2.127
21.632
703
4.127
64.530
Net Book Value - December 31, 2008
9.758
25.354
960
109.310
81.244
9.985
17.285
590
182.737
99.297
Total
292.177
118.345
(15.577)
10.399
(2.331)
403.013
65.551
35.855
(8.312)
64
(39)
93.119
226.626
309.894
(*) Other tangible fixed assets comprise leasehold improvements, safety box, office equipments, furniture and other fixed assets.
(**) TRY 23.037 Thousand of the balance is transferred from assets held for sale to tangible fixed assets, TRY 12.701 Thousand of real estate’s to be
disposed have acquired the classification as fixed assets is transferred to assets held for sale. TRY 23.038 Thousand of assets held for sale includes
impairment losses of TRY 1.006 Thousand.
137
Leased Assets Held Other Tangible
Buildings
Tangible Assets
Vehicles
for Resale
Assets (*)
Cost
10.187
36.397
1.079
25.924
78.763
Additions -
3.529
563
87.397
52.093
Disposals
-
-
(82)
(731)
(2.561)
Transfers (**)
1.855
-
-
(818)
-
(489)
-
-
(929)
-
11.553
39.926
1.560
110.843
128.295
Accumulated Depreciation(-)
1.559
6.648
400
363
32.248
310
7.924
232
1.541
17.004
Accumulated Depreciation of Tangible
-
(32)
(35)
(2.201)
Transfers
5
-
-
(5)
-
(79)
-
-
(331)
-
1.795
14.572
600
1.533
47.051
8.628
29.749
679
25.561
46.515
9.758
25.354
960
109.310
81.244
Total
152.350
143.582
(3.374)
1.037
(1.418)
292.177
41.218
27.011
(2.268)
(410)
65.551
111.132
226.626
(**) In the current period, tangible assets amounting to TRY 1.037 Thousand previously included in assets held for resale column were transferred
to tangible assets since they had not been sold and assets held for resale amounting to TRY 1.855 Thousand previously presented in tangible assets
were transferred to land and buildings column. TRY 1.855 Thousand balance comprises impairment losses provisions of TRY 3.385 Thousand.
13. Informations on Intangible Assets
13.1. Opening and Ending Book Values and Accumulated Depreciation Balances:
Book Value
Accumulated Depreciation
Net Book Value
Current Period
17.261
(7.037)
10.224
Prior Period
11.173
(4.841)
6.332
13.2. Intangible Assets Movement Table:
Cost
Opening Balance- January 1, 2009
Additions
Disposals
Ending Balance- December 31, 2009
Accumulated Amortization (-)
Amortization Expense
Disposals
Net Book Value- December 31, 2008
Computer Software
11.173
6.088
17.261
4.841
2.196
7.037
6.332
10.224
138
Cost
Additions
Disposals
Disposals
Computer Software
7.866
3.307
11.173
3.271
1.570
4.841
4.595
6.332
14. Information on Investment Properties
None (December 31, 2008: None).
15. Informations on Deferred Tax Asset
As of December 31, 2009, deferred tax asset computed on the temporary differences, except for general loan provision and provision for possible
risks, is TRY 4.754 Thousand and is recorded in the deferred tax asset account. Retirement Pay Provision
Short-Term Employee Benefits Credit Card Promotion Provision
Fixed Asset Depreciation Difference
Impairment Loss on Fixed Assets Held for Resale
Finance Lease Adjustment
Fair Value Differences of Derivative Financial Instruments
Impairment Loss on Buildings Impairment Loss on Assets Held For Sale
Deferred Commission Income
Marketable Security Valuation Differences
Other
Deferred Tax Asset (Net)
Current Period
Deferred Tax Base Deferred Tax Asset/(Liability)
7.974
1.595
8.715
1.743
4.909
982
(35.537)
(7.107)
12.508
2.502
2.124
425
(3.734)
(747)
3.260
652
11
2
26.379
5.276
(3.682)
(736)
845
167
23.772
4.754
Retirement Pay Provision
Impairment Loss on Fixed Assets Held for Resale
Impairment Loss on Buildings Impairment Loss on Assets Held for Sale
Other
Deferred Tax Liability (Net)
Deferred Tax Base
7.148
7.302
5.673
(31.434)
8.675
4.743
(30.035)
3.795
1.006
16.903
(26)
(6.250)
Prior Period
Deferred Tax Asset/(Liability)
1.430
1.460
1.135
(6.287)
1.735
949
(6.007)
759
201
3.381
(6)
(1.250)
139
Movement of the deferred tax asset as of December 31, 2009 and December 31, 2008 is stated as below:
Deferred Tax Asset, January 1
Deferred Tax Accounted for Under Equity
Charge/Benefit for Current Period Deferred Tax Asset/Liability
Current Period
(1.250)
(730)
6.734
4.754
Prior Period
978
(2.228)
(1.250)
16. Informations on Assets Held for Sale
Assets held for sale consist of tangible assets which are obtained from non-performing loans and they are recognized as required in accordance
with the prevailing the Communiqué of “Principles and Procedures on Bank’s Disposal of Precious Metals and Assets Held for Sale” published on
November 1, 2006 in the Official Gazette numbered 26333 in the unconsolidated financial statements.
As of December 31, 2009, assets held for sale amounts to TRY 9.196 Thousand (December 31, 2008: TRY 24.100 Thousand).
Opening Balance- January 1
Additions
Outflows
Transfers (net) (*)
Impairment Losses Provisions Ending Balance
Current Period
24.100 460 (5.018)
(10.336)
(11)
9.196 Prior Period
1.037
25.106
(1.037)
(1.006)
24.100
(**) TRY 23.037 Thousand of the balance is transferred from assets held for sale to tangible fixed assets, TRY 12.701 Thousand of real estates to be
17. Informations on Other Assets
Other assets amount to TRY 82.089 Thousand. Other assets account does not exceed 10% of the total assets (December 31, 2008: TRY 30.859
Thousand).
Clearing Account (*)
Prepaid Rent Expenses
Other Prepaid Expenses
Receivables from Credit Card Payments
Office Supply Inventory
Other
Total
Current Period
54.284 4.274 4.566 14.248 1.441 3.276 82.089 Prior Period
3.690
4.441
15.619
1.941
5.168
30.859
(*) At the previous period, debit transitory clearing account amounted TRY 49.438 Thousand was net-off by the credit transitory clearing account.
140
II.Explanations and Disclosures Related to the Liabilities
1.1.Informations on Maturity Structure of Deposits:
Accumulated
Up to 1 Up to 3 Up to 6 Up to 9
Up to
1 Year Profit Sharing
Current Period
Demand
Month Months Months Months 1 Year and Over
Accounts
Total
I. Real Persons Current Deposits-TRY
378.510
-
-
-
-
-
-
-
378.510
II. Real Persons Profit Sharing Accounts-TRY
- 809.888 1.258.531 318.877
- 155.259 1.484.479
- 4.027.034
III. Other Current Accounts-TRY
638.448
-
-
-
-
-
-
-
638.448
Public Sector 20.212
-
-
-
-
-
-
-
20.212
Commercial Sector
607.076
-
-
-
-
-
-
-
607.076
Other Institutions
10.696
-
-
-
-
-
-
-
10.696
Commercial and Other Institutions
217
-
-
-
-
-
-
-
217
Banks and Finance Houses
247
-
-
-
-
-
-
-
247
Central Bank
-
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
-
Foreign Banks
-
-
-
-
-
-
-
-
Banks
247
-
-
-
-
-
-
-
247
Other
-
-
-
-
-
-
-
-
IV. Profit Sharing Accounts-TRY
-
171.512
311.624
25.345
- 130.357
296.995
-
935.833
Public Sector -
4
-
-
-
-
-
-
4
Commercial Sector
- 166.504 293.586
16.917
- 129.457
279.657
-
886.121
Other Institutions
-
5.002
17.466
8.428
-
805
16.483
-
48.184
-
2
572
-
-
95
855
-
1.524
Banks -
-
-
-
-
-
-
-
V. Real Persons Current Deposits-FC
248.744
-
-
-
-
-
-
-
248.744
VI. Real Persons Profit Sharing Accounts-FC
- 267.485 524.460 154.067
- 125.869
405.700
- 1.477.581
VII. Other Current Accounts-FC
289.266
-
-
-
-
-
-
-
289.266
Commercial Residents in Turkey 263.700
-
-
-
-
-
-
-
263.700
Commercial Residents in Abroad
23.823
-
-
-
-
-
-
-
23.823
Banks 1.743
-
-
-
-
-
-
-
1.743
Central Bank
-
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
-
Foreign Banks
-
-
-
-
-
-
-
-
Banks
1.743
-
-
-
-
-
-
-
1.743
Other
-
-
-
-
-
-
-
-
VIII. Profit Sharing Accounts- FC
- 162.294
411.217 294.104
- 70.748
164.949
- 1.103.312
Public Sector -
-
-
-
-
-
-
-
Commercial Sector
- 159.793 316.550 273.681
- 65.009
153.527
-
968.560
Other Institutions
-
78
75.992
20.351
-
-
7.787
-
104.208
-
2.423
18.675
72
-
5.739
3.635
-
30.544
-
-
-
-
-
-
-
-
IX. Precious Metal Deposits
37.850
-
-
-
-
-
-
-
37.850
X. Profit Sharing Accounts Special Fund Pools-TRY
-
-
-
-
-
-
-
-
Residents in Turkey
-
-
-
-
-
-
-
-
Residents Abroad
-
-
-
-
-
-
-
-
XI. Profit Sharing Accounts Special Fund Pools-FC
-
-
-
-
-
-
-
-
Residents in Turkey
-
-
-
-
-
-
-
-
Residents Abroad
-
-
-
-
-
-
-
-
Total(I+II+…..+IX+X+XI)
1.592.818 1.411.179 2.505.832 792.393
- 482.233 2.352.123
- 9.136.578
141
Accumulated
Up to 1 Up to 3 Up to 6 Up to 9
Up to
1 Year Profit Sharing
Prior Period
Demand
Month Months Months Months 1 Year and Over
Accounts
Total
187.109
-
-
-
-
-
-
-
187.109
-
584.118 1.030.396 220.251
- 142.241
473.196
- 2.450.202
435.940
-
-
-
-
-
-
-
435.940
-
-
-
-
-
-
-
70.718
Commercial Sector
356.099
-
-
-
-
-
-
-
356.099
Other Institutions
4.831
-
-
-
-
-
-
-
4.831
2.476
-
-
-
-
-
-
-
2.476
1.816
-
-
-
-
-
-
-
1.816
Central Bank
-
-
-
-
-
-
-
-
Domestic Banks
2
-
-
-
-
-
-
-
2
Foreign Banks
-
-
-
-
-
-
-
-
Banks
1.814
-
-
-
-
-
-
-
1.814
Other
-
-
-
-
-
-
-
-
-
58.674
189.118
55.034
- 79.061
148.349
-
530.236
Public Sector -
24
18
-
-
-
-
-
42
Commercial Sector
-
56.925 155.077
54.490
- 79.038
144.607
-
490.137
Other Institutions
-
1.723
33.224
544
-
23
2.991
-
38.505
-
2
799
-
-
-
751
-
1.552
Banks -
-
-
-
-
-
-
-
125.716
-
-
-
-
-
-
-
125.716
-
211.034 385.994 138.826
- 105.605
207.252
- 1.048.711
258.085
-
-
-
-
-
-
-
258.085
-
-
-
-
-
-
-
244.296
12.458
-
-
-
-
-
-
-
12.458
Banks 1.331
-
-
-
-
-
-
-
1.331
Central Bank
-
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
-
Foreign Banks
-
-
-
-
-
-
-
-
Banks
1.331
-
-
-
-
-
-
-
1.331
Other
-
-
-
-
-
-
-
-
-
87.935 250.366
92.447
- 267.524
108.550
-
806.822
Public Sector -
-
2
-
-
-
-
-
2
Commercial Sector
-
83.712 238.790
50.660
- 218.490
102.307
-
693.959
Other Institutions
-
1.352
10.736
38.477
- 46.330
109
-
97.004
-
2.871
838
3.310
-
2.704
6.134
-
15.857
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Residents in Turkey
-
-
-
-
-
-
-
-
Residents Abroad
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Residents in Turkey
-
-
-
-
-
-
-
-
Residents Abroad
-
-
-
-
-
-
-
-
Total(I+II+…..+IX+X+XI)
1.006.850 941.761 1.855.874 506.558
- 594.431 937.347
- 5.842.821
142
1.2.Current and Participation Accounts Attributable to Real Entities/Persons Under the Guarantee of Saving Deposit Insurance Fund
Exceeding the Limit of the Deposit Insurance Fund:
Under the Guarantee of Saving Deposit Insurance
Current Period
Prior Period
Real Persons Current and Profit Sharing Accounts that
are not Subject to Commercial Activities
2.945.503 2.137.505 TRY Accounts
2.400.527 1.684.785 FC Accounts
544.976 452.720 Foreign Branches’ Deposits Under Foreign Authorities’ Insurance
-
-
Off-shore Banking Regions’ Deposits Under Foreign Authorities’ Insurance
-
-
Exceeding the Limit
of Saving Deposit Insurance
Current Period
Prior Period
3.183.707 1.983.628 1.200.079 -
-
1.510.716
926.721
583.995
-
1.3.Current and Profit Sharing Accounts which are not Under the Guarantee of Deposit Insurance Fund:
The Bank has no current or profit sharing accounts which are not under the guarantee of the Saving Deposit Insurance Fund except for the current
and profit sharing accounts of Board of Directors, general manager, assistant general managers and their close families.
2. Informations on Derivative Financial Liabilities Held for Trading
As of December 31, 2009, derivative financial liabilities held for trading amounts to TRY 155 Thousand (December 31, 2008: None).
Other Total
Current Period
TRY
FC
-
155
-
-
-
155
Prior Period
TRY
FC
-
-
-
-
Current Period (*)
TRY
FC
-
-
-
-
-
191.461
-
191.461
Prior Period (*)
TRY
FC
-
-
-
457.552
-
457.552
3. Informations on Borrowings
3.1.Informations on Banks and Other Financial Institutions:
Loans from The Central Bank of Turkish Republic
From Domestic Banks and Institutions
From Foreign Banks, Institutions and Funds
Total
(*) The bank does not have any syndicated loan in the current period (December 31, 2008: TRY 129.239 Thousand).
The details of the syndicated loans and other loans that are provided from banks and financial institutions are stated as below:
Current Period 2010
2011
2012
2014
2016
Total
Foreign Currency Type
EUR
USD
5.549 110.005 -
4.580 -
17.281 42.390 1.206 10.450 -
58.389 133.072 Total
115.554
4.580
17.281
43.596
10.450
191.461
143
Prior Period Foreign Currency Type
AED
EUR
USD
2009
45.202 78.435
259.146
2010
-
5.326
33.804
2011
-
-
7.656
2012
-
-
26.107
2016
-
1.876
-
Total
45.202
85.637
326.713
Total
382.783
39.130
7.656
26.107
1.876
457.552
3.2. Maturity Analysis of Borrowings:
Short-Term
Medium-Term and Long-Term
Total Current Period
TRY
FC
-
47.206
-
144.255
-
191.461
Prior Period
TRY
FC
-
164.502
-
293.050
-
457.552
3.3. Additional Explanation Related to the Concentrations of the Bank’s Major Liabilities:
None.
4.Other Liabilities with Exceeding 10% of the Balance Sheet Total (Excluding Off-Balance Sheet Commitments) and the Breakdown of
Such Liabilities Constituting at Least 20% of the Grand Total
Other liability items amount to TRY 194.343 Thousand and do not exceed 10% of the total balance sheet total (December 31, 2008: TRY 108.982
Thousand).
Fees and Commissions Collected in Advance
Payment Orders
Import Transfer Orders
Other
Total Current Period
149.086 26.379 4.304 9.980 4.594 194.343 Prior Period
79.768
16.903
4.968
7.068
275
108.982
(*) At the previous period, debit transitory clearing account amounted TRY 49.438 Thousand was net-off by the credit transitory clearing account.
5.Informations on Financial Lease Obligations
None.
Deferred Finance Lease Expenses(-)
Total
6. Informations on Derivative Financial Liabilities for Hedging Purposes
None.
Current Period
TRY
FC
-
-
-
-
-
-
Prior Period
TRY
6
-
6
FC
-
144
7. Explanations on Provisions
7.1. Informations on General Provisions:
General provisions
I. Provisions for First Group Loans and Receivables
Profit Sharing Accounts’ Share
The Bank’s Share Other
II. Provisions for Second Group Loans and Receivables
Provisions for Non Cash Loans
Current Period
89.368 59.812 35.448 24.347 17 13.908 4.527 9.381 -
15.648 Prior Period
72.286
41.608
19.637
21.850
121
12.631
7.156
5.475
18.047
7.2. Movement of General Provisions:
Current Period
Charge for Period
Reversal of Prior Period Expenses
Profit Sharing Accounts Share
Closing Balance- December 31, 2009
Prior Period
Opening Balance – January 1, 2008
Charge for Period
72.286
12.317
(8.833)
13.598
89.368
44.182
17.381
(212)
10.935
72.286
7.3. Informations on Provision for Foreign Exchange Losses on The Foreign Currency Indexed Loans and Finance Lease Receivables:
As of December 31, 2009, the Bank’s provision for foreign currency indexed loans amounts to TRY 18.331 Thousand (December 31, 2008: TRY 6.268
Thousand). Provisions for foreign currency indexed loans are offset under the loan balance in the financial statements.
7.4. Informations on the Specific Provisions Provided for Unindemnified Non-Cash Loans:
As of December 31, 2009, the Bank’s specific provision provided for unindemnified non-cash loans amounts to TRY 11.551 Thousand (December 31,
2008: TRY 11.698 Thousand).
7.5. Informations on Other Provisions:
7.5.1. Informations on Provisions for Potential Risks:
7.5.2. Informations on Other Provisions:
Other Provisions
Provision for Credit Cards and Promotion of Banking Services
Provision for Unindemnified Non-Cash Loans Payment Commitment for Checks
Litigation Provision
Total
Current Period
4.909
11.551
5.389
841
22.690
Prior Period
5.673
11.698
2.338
378
20.087
145
7.5.3. Movement of the Retirement Pay Provision:
Current Service Cost
Interest Cost
Severance Pay
Actuarial Loss/(Gain) Closing Balance - December 31, 2009
Current Period
7.148
1.490
785
(711)
(738)
7.974
Prior Period
5.141
2.360
323
(676)
7.148
Bank employee benefit money, actuary valuation method used for calculation of financial tables which sated in numbered 19 Turkish Accounting
Standards.
As of December 31, 2009, the Bank also provided a provision of TRY 8.715 Thousand for the unused vacation pays (December 31, 2008: TRY 7.302
Thousand).
8. Explanations on Taxes Payable
8.1. Informations on Current Tax Liability:
As of December 31, 2009, the Bank’s corporate tax payable is TRY 18.316 Thousand after offsetting pre-paid corporate tax (December 31, 2008: TRY
16.051 Thousand).
Provision for Corporate Taxes
Prepaid Corporate Tax
Corporate Tax Payable Current Period 83.845
(65.529)
18.316
Prior Period
63.147
(47.096)
16.051
Current Period 18.316
8.360
468
6.331
-
375
9.116
42.966
Prior Period
16.051
7.931
361
6.935
374
2.562
34.214
8.2. Informations on Taxes Payable:
Corporate Taxes Payable
Taxation of Securities
Property Tax
Banking Insurance Transaction Tax (BITT)
Foreign Exchange Transaction Tax
Value Added Tax Payable
Other
Total
146
8.3. Premiums:
Social Security Premiums-Employee
Social Security Premiums-Employer
Bank Social Aid Pension Fund Premium-Employee
Bank Social Aid Pension Fund Premium-Employer Pension Fund Membership Fees and Provisions-Employee
Pension Fund Membership Fees and Provisions-Employer
Unemployment Insurance-Employee
Unemployment Insurance-Employer
Other
Total
Current Period
2.165
3.041
-
-
-
-
154
307
-
5.667
Prior Period
1.032
1.461
73
146
2.712
8.4.Explanations on Deferred Tax Liabilities:
None (December 31, 2008 TRY 1.250 Thousand).
9. Informations on Liabilities Regarding Assets Held for Sale and Discontinued Operations:
None.
10. Informations on Subordinated Loans
None.
11. Informations on Shareholders’ Equity
11.1. Presentation of Paid-in Capital:
Common Stock
Preferred Stock (*)
Current Period
540.000
360.000
Prior Period
540.000
360.000
(*) Preferred stockholders have the right to nominate candidates for the Board of Directors and the Audit Committee.
11.2. Paid-in Capital Amount, Explanation as to whether the Registered Share Capital System is Applicable at Bank if so Amount of the
Registered Share Capital Ceiling:
Registered capital system is not applied in the Bank.
11.3.Share Capital Increases and Their Sources; Other Informations on Increased Capital Shares in the Current Period:
None.
11.4.Informations on Share Capital Increases from Capital Reserves:
None.
11.5. Informations on Share Capital Increases from Revaluation Funds:
None.
147
11.6.Capital Commitments in the Last Fiscal Year and at the End of the Following Interim Period, General Purpose of These
Commitments and Projected Resources Required to Meet These Commitments:
None.
11.7.Indicators of the Bank’s Income, Profitability and Liquidity for Prior Periods and Possible Effects of These Future Assumptions on
the Bank’s Equity due to the Uncertainty of These Indicators:
The Bank carries its activities in profitable level and retains the major portion of its net profit within equity by means of transfers to reserve
accounts and capital increases. The Bank, also allocates its equity to highly liquid and profit generating assets.
11.8. of Privileges Granted to Preferred Stocks:
The holders of the preferred stocks have the right to nominate candidates for the Board of Directors and the Audit Committee.
11.9.Explanations on Marketable Securities Value Increase Fund:
From Associates, Subsidiaries, and Entities Under Common Control (Joint Vent.)
Valuation Difference
Foreign Exchange Difference
From Financial Assets Available for Sale Valuation Difference
Total
Current Period
-
-
-
2.921
2.921
-
2.921
Prior Period
-
III.Explanations and Disclosures Related to the Off-Balance Sheet Contingencies and Commitments
1. Explanation on Contingent Liabilities
1.1.Nature and Amounts of Irrevocable Loan Commitments:
Asset Purchase-Sale Commitments
Time Deposit Purchase-Sale Commitments
Capital Commitments for Associates And Subsidiaries (*)
Loan Granting Commitments
Commitments for Credit Card Expenditure Limits
Commitments for Credit Card And Retail Banking Promotions
Payment Commitments for Checks
Tax and Fund Liabilities from Export Commitments
Other Irrevocable Commitments
Total
Current Period
494.852 -
29.699 140.538 1.365.927 5.862 434.811 1.596 -
7.353
6.869
128.301
1.256.191
8.067
408.821
1.815.602
(*) Consist of capital commitment amounts of TRY 5.153 Thousand form Bank’s subsidiary Işık Sigorta, TRY 2.000 Thousand from Kredi Garanti Fonu
A.Ş. and TRY 22.546 Thousand from Tamweel Holding S.A.
148
1.2.Non-cash Loans Including Guarantees, Banker’s Acceptances, Letters of Credit and Other Financial Guarantees:
1.2.1.Non-cash Loans Including Guarantees, Banker’s Acceptances, Letters of Credit and Other Financial Guarantees:
Guarantees
Acceptances
Letter of Credits
Other Guarantees
Total
Current Period
7.369.461 120.412 1.250.120 145.984 8.885.977 Prior Period
8.646.573
169.474
1.221.268
178.100
10.215.415
1.2.2. Long Standing Guarantees, Temporary Guarantees, Sureties and Similar Transactions:
Long Standing Guarantees
Temporary Guarantees
Sureties and Similar Transactions
Total
Current Period
5.825.274 598.432 945.755 7.369.461 Prior Period
6.658.536
753.207
1.234.830
8.646.573
Current Period
148.667 2.888 145.779 8.737.310 8.885.977 Prior Period
163.418
29.495
133.923
10.051.997
10.215.415
1.3. Total Amount of Non-Cash Loans:
Guarantees Given Against Achieving Cash Loans
With Maturity of 1 Year or Less
With Maturity of More than 1 Year
Other Non-Cash Loans Total
2.Sectoral Risk Concentration of Non-Cash Loans
TRY
Agricultural
46.585 Farming and Raising Livestock 32.608 Forestry
12.793 Fishery
1.184 Manufacturing
1.398.487 Mining 88.855 Production
813.949 Electric, Gas and Water
495.683 Construction
1.740.366 Services
751.342 Wholesale and Retail Trade
183.147 Hotel, Food and Beverage Services
45.744 Transportation and Telecommunication164.260 Financial Institutions
93.653 Real Estate and Renting Services
84.904 Self-Employment Services
39.387 Education Services
22.210 Health and Social Services
118.037 Other
47.738 Total 3.984.518 Current Period Prior Period
(%)
FC
(%)
TRY
(%)
FC
1,17 43.471 0,89
48.099 1,05 84.553 0,82 40.700 0,83
39.854 0,87 81.017 0,32 2.452 0,05
7.849 0,17 1.556 0,03 319 0,01
396 0,01 1.980 35,10 2.681.363
54,71 1.861.976 40,47 2.949.649 2,23 117.976
2,41
415.709 9,04 274.539 20,43 1.716.457
35,02 1.242.636 27,01 2.384.334 12,44 846.930
17,28
203.631 4,42 290.776 43,66 1.306.045
26,65 2.006.367 43,61 1.637.825 18,87 854.004
17,42
576.561 12,53 903.798 4,61 130.553
2,66
166.667 3,62 92.581 1,15 30.537
0,62
28.804 0,63 85.887 4,12 428.509
8,74
105.990 2,30 469.977 2,35 184.197
3,76
55.880 1,21 156.473 2,13 50.302
1,03
44.053 0,96 13.416 0,99 9.436
0,19
46.960 1,02 67.531 0,56 3.885
0,08
14.144 0,31 3.888 2,96 16.585
0,34
114.063 2,48 14.045 1,20 16.576
0,33
107.804 2,34 38.783 100,00 4.901.459
100,00 4.600.807 100,00 5.614.608 (%)
1,51
1,44
0,03
0,04
52,54
4,89
42,47
5,18
29,17
16,10
1,65
1,53
8,37
2,79
0,24
1,20
0,07
0,25
0,68
100,00
149
3. Informations on Ist and IInd Group Non-Cash Loans
Non-Cash Loans
Letters of Guarantee Endorsements and Acceptances Letters of Credit
Endorsements
Underwriting Commitments
Factoring Commitments
Other Commitments and Contingencies
I st Group
TRY
3.920.035 3.903.758 -
270 -
-
-
16.007 FC
4.866.117 3.368.824 120.412 1.248.134 -
-
-
128.747 II nd Group
TRY
FC
64.483 35.342
64.483 32.396
-
-
1.716
-
-
-
-
1.230
4. Derivative Financial Instruments
Derivative Transactions according to Purposes
Trading
Hedging
Current Period
Prior Period
Type of Trading Transactions
Foreign Currency Related Derivative Transactions (I):
900.976
834.730 -
-
13.025 -
Swap Transactions
900.976
821.705 -
-
-
-
Option Transactions
-
-
-
Interest Related Derivative Transactions (II):
-
-
-
Forward Rate Transactions
-
-
-
Interest Rate Swap Transactions
-
-
-
Interest Option Transactions
-
-
-
Futures Interest Transactions
-
-
-
Marketable Securities Call-Put Options (III)
-
-
-
A. Total Trading Derivative Transactions (I+II+III+IV)
900.976
834.730 -
Types of Hedging Transactions
Fair Value Hedges
-
-
-
Cash Flow Hedges
-
-
-
Net Investment Hedges
-
-
-
B. Total Hedging Related Derivatives
-
-
-
Total Derivative Transactions (A+B)
900.976
834.730 -
-
150
As of December 31, 2009, the breakdown of the Bank’s foreign currency forward transactions based on currencies are disclosed below in their TRY
equivalents.
Current Period
Forward Buy
TRY
452.277
USD
-
EUR
-
Total
452.277
Prior Period
Forward Buy
TRY
438.194 USD
-
EUR
-
Total
438.194 Forward Sell
448.699
448.699
Forward Sell
353.878
42.658
396.536
As of December 31, 2009, the Bank does not have any derivative transactions for the purpose of cash flow hedge.
5.Explanations on Contingent Liabilities and Assets
As of the balance sheet date, there are 185 ongoing court cases against the Bank amounting to TRY 18.076 Thousand and EUR 946 based on the
information provided from the legal department of the Bank. For one of the ongoing court cases mentioned above, provision amounting to TRY
841 Thousand has been made. Besides, a lawsuit is filed in the Tax Court as of January 11, 2007 in connection with the penalty of TRY 10.232
Thousand with the claim of participation of the Bank under the Article 360 of the Tax Procedure Law, as an extension of an investigation of
the Anatolian Corporate Tax Office’s Management held on a customer of the Bank, due to the transactions of the customer made at one of the
branches of the Bank. The Bank management believes that the court would end up in favor of the Bank. Therefore, the Bank did not make any
provisions in the accompanying financial statements.
6. Explanations on Custodian and Intermediary Services
None.
7. Summary Informations on the Bank’s Rating by the International Rating Institutions
FITCH RATINGS
Foreign Currency
Long Term
Short Term
Outlook
Turkish Lira
Long Term
Short Term
Outlook
International
Long Term
Outlook
Individual Rating
Support Points
B
B
Stable
B
B
Stable
BBB+ (tour)
Stable
D
5
151
MOODY’S
Financial Strength
Outlook
Foreign Currency
Long Term
Short Term
Outlook
Turkish Lira
Long Term
Short Term
Outlook
International
Long Term
Short Term
D
Stable
B1/NP
B1/NP
Stable
Ba1/NP
Ba1/NP
Stable
A1+r
TR-1
JCR EURASIA
Foreign Currency
Long Term
Short Term
Outlook
Long Term
Short Term
Outlook
National Local Rating
Long Term
Short Term
Outlook
Stand-Alone
Support Points
BBB
Stable
BBB
Stable
A- (Trk)
A- 1 (Trk)
Stable
BC
3
152
IV.Explanations and Disclosures Related to the Income Statement
1. Informations on Profit Share Income
1.1. Informations on Profit Share on Loans:
Profit Share on Loans Short Term Loans
Medium and Long Term Loans
Profit Share on Non-Performing Loans
Premiums Received from Resource Utilization Support Fund
Group I
TRY
1.118.138 587.026 509.195 21.917 -
FC
55.542 23.829 31.713 -
-
Group II
TRY
26.482 6.226 20.256 -
-
FC
3.194
546
2.648
-
1.2. Profit Share from Banks:
The Central Bank of Turkish Republic (Reserve Deposit)
Domestic Banks
Foreign Banks (*)
Branches and Head Office Abroad
Total
Current Period
TRY
FC
19.661 73 -
-
50.740 1.475 -
-
TRY
FC
22.345 3.496
-
38.590 10.272
-
60.935 13.768
(*) Foreign banks include profit shares from murabaha loans.
1.3. Informations on Interest Received from Marketable Securities:
Held-for-Trading Financial Assets
Financial Assets at Fair Value through Profit and Loss
Investments Held-to-Maturity
Total
Current Period
TRY
FC
-
-
-
-
7.020
-
7.020
-
14.040
-
Prior Period
TRY
-
-
-
-
-
FC
-
1.4. Informations on Profit Share Income Received from Associates and Subsidiaries:
Profit Share Income Received from Associates and Subsidiaries
Current Period
17.917
Prior Period
6.654
153
2. Informations on Profit Share Expenses
2.1. Informations on Interest on Funds Borrowed:
Banks
Domestic Banks
Foreign Banks
Other Institutions
Total
Current Period
TRY
FC
-
18.259
-
-
-
-
-
18.259
-
-
-
-
-
18.259
Prior Period
TRY
FC
-
21.630
-
-
144
-
21.486
-
-
-
21.630
Current Period
6.803
Prior Period
6.947
2.2. Informations on Profit Share Expense Given to Associates and Subsidiaries:
Profit Share Expenses Given to Associates and Subsidiaries
2.3. Informations on Profit Share Expense to Marketable Securities Issued:
None.
2.4.Distribution of Profit Share Expense on Deposits Based on Maturity of Deposits:
Profit Sharing Accounts
Up to 1
Up to 3
Up to 6
Up to 9
More than
Account Name
Month
Months
Months
Months Up to 1 Year
1 Year
TRY
-
-
-
-
-
-
Real Person’s Profit Sharing Acc.
77.613 163.026 56.275 -
18.948 139.568 Public Sector Profit Sharing Acc.
23 1
-
-
-
10 Commercial Sector Profit Sharing Acc.
11.196 35.687 6.530 -
18.795 26.817 Other Institutions Profit Sharing Acc.
371 1.761 1.422 -
76 3.538 Total
89.203 200.475 64.227 -
37.819 169.933 FC
183 91 22 -
-
-
11.047 17.453 12.438 -
-
-
-
-
-
-
Commercial Sector Profit Sharing Acc.
3.017 13.336 9.294 -
13 490 4.762 -
1.553 302 Precious Metal Deposits
-
-
-
-
-
-
Total
14.260 31.370 26.516 -
19.816 32.523 Grand Total
103.463
231.845 90.743 -
57.635 202.456 3. Informations on Dividend Income
None (31 December, 2008 TRY 3.925 Thousand).
Total
455.430
34
99.025
7.168
561.657
296
72.242
44.827
7.120
124.485
686.142
154
4.Informations on Net Trading Income (Net)
Income
Profit on Capital Market Operations
Profit on Derivative Financial Instruments
Foreign Exchange Gains
Losses (-)
Losses on Capital Market Operations
Losses on Derivative Financial Instruments
Foreign Exchange Losses
Current Period
2.203.838 -
276.561 1.927.277 (2.110.073)
-
(73.367)
(2.036.706)
Prior Period
2.909.018
53.505
2.855.513
(2.849.598)
(38.139)
(2.811.459)
Current Period
6.843 4.309 77.440 14.027 102.619 Prior Period
6.452
1.691
49.773
9.818
67.734
Current Period
194.762 85.562 18.408 82.224 8.568 12.317 -
-
-
-
-
-
-
-
-
128.982
54.969
20.553
48.882
4.578
17.381
10.251
156.614
5. Informations on Other Operating Income
The detail of other operating income is stated as below:
Communication Expense Reversal
Gain on Sale of Assets
Change in Expense of Previous Years
Other
Total
6. Provision Expenses of the Bank for Loans and Other Receivables
Specific Provisions for Loans and Other Receivables
III. Group Loans and Receivables
IV. Group Loans and Receivables
V. Group Loans and Receivables
Doubtful Commission, Fee and Other Receivables
General Provision Expenses
Provision Expenses for Possible Losses
Marketable Securities Impairment Losses
Investment Securities Available for Sale
Impairment Provision Expense
Associates
Subsidiaries
Entities Under Common Control
Investments Held to Maturity
Other
Total
155
7. Informations on Other Operating Expenses
Personnel Expenses
Provision for Employee Termination Benefits
Bank Social Aid Provision Fund Deficit Provision
Impairment Expenses of Fixed Assets
Depreciation Expenses of Fixed Assets Impairment Expenses of Intangible Assets
Impairment Expense of Goodwill
Amortization Expenses of Intangible Assets Impairment Provision for Investments Accounted for Under Equity Method
Impairment Expenses of Assets Held for Resale (*)
Depreciation Expenses of Assets Held for Resale
Impairment Expenses of Assets Held for Resale
Other Operating Expenses Rent Expenses
Maintenance Expenses Advertisement Expenses
Other Expenses
Loss on Sales of Assets
Other Total
Current Period
213.048 1.537 -
-
32.890 -
-
2.196 -
3.698 2.965 11 158.577 40.059 3.248 30.544 84.726 5.612 38.519 459.053 Prior Period
174.283
2.683
410
25.470
1.570
598
1.541
1.006
150.083
32.166
4.158
32.130
81.629
646
31.876
390.166
(*) Amounting TRY 871 Thousands reversal of impairment of asset held for sale is accounted within the adjustment account related to prior year
losses.
8. Informations on Continuing Operations Profit or Loss Before Tax
The Bank’s profit before tax is increased by 21, 32% as compared to the prior year figures and total profit before tax amounts to TRY 378.392
Thousand. Profit before tax includes TRY 599.847 Thousand net profit share income, TRY 258.373 Thousand net fees and commissions income. Total
operating expense amount is TRY 459.053 Thousand.
9. Informations on Continuing Operations Tax Provision
As of December 31, 2009, current tax expense is TRY 83.845 Thousand (December 31, 2008: TRY 63.147 Thousand) and deferred tax income is TRY
6.734 Thousand (December 31, 2008: TRY 2.228 Thousand deferred tax expense).
10. Informations on Operating Profit/Loss After Taxes
Net profit of the Bank is increased by 22, 21 % as of December 31, 2009 as compared to the prior year’s net profit.
11. Explanations on Net Income/Loss for the Period:
The nature and amount of certain income and expense items from ordinary operations is disclosed if the disclosure for nature, amount and
repetition rate of such items is required for the complete understanding of the Bank’s performance for the period: None.
Effect of changes in accounting estimates on income statement for the current and, if any, for subsequent periods: None.
156
12. The Description and Amounts of Items which Constitute at Least 20% of Other Items in the Income Statement, If These Liabilities
Exceed 10% of the Total Income Statement
Other fees and commissions income/expense are stated as below:
Current Period
Other Fees and Commissions Received
Member Firm-POS
64.712
Credit Cards Commissions and Fees
39.363
Other
32.411
Total
136.486
Prior Period
Current Period
Other Fees and Commissions Given
47.355
Other
5.206
Total
52.561
Prior Period
61.584
45.294
38.991
145.869
59.206
3.527
62.733
13. Nature and Amount of Changes in Accounting Estimates which Have Material Effects on the Current Period or Expected to Have
Material Effects on the Subsequent Periods
None.
V.Explanations and Disclosures Related to the Statements of Shareholders’ Equity Movement
1.Increases from Valuation of Financial Assets Available for Sale
Increase resulting from revaluation of financial assets available for sale is TRY 2.921 Thousand (December 31, 2008: None).
2. Increases Due to Cash Flow Hedges
None.
3. Reconciliation of Foreign Exchange Differences at Beginning and End of Current Period
None.
4.Dividends Declared Subsequent to the Balance Sheet Date, but Before the Announcement of the Financial Statements
None.
5.Dividends per Share Proposed Subsequent to the Balance Sheet Date
None.
6.Proposals to General Assembly for the Payment Dates of Dividends and if It will not be Appropriated the Reasons for This
The Board of Directors has not decided for profit appropriation as of the date of the financial statements are authorized for issue.
7.Amounts Transferred to Legal Reserves
As of December 31, 2009, amount transferred to legal reserves is TRY 12.325 Thousand (December 31, 2008: TRY 10.853 Thousand).
8. Information on Shares Issued
None.
157
1. Cash and Cash Equivalents
1.1.Components of Cash and Cash Equivalents and Accounting Policies Used to Determine Such Components:
“Cash” is defined as cash in vault and foreign currency cash, money in transit, cheques purchased, unrestricted amount in the Central Bank and
demand deposits in Banks, and “Cash equivalents” is defined as time deposits in Banks having original maturity less than three months. Reserve
deposits provided in the Central Bank blocked accounts are presented as cash equivalents.
1.2.Cash and Cash Equivalents at the Beginning of the Period:
Cash
Cash in TRY/Foreign Currency
Central Bank Banks-Demand Deposit
Cash Equivalents
Banks-Time Deposit
Murabaha Transactions Classified as Loans Total Cash and Cash Equivalents
Current Period
1.240.507
66.972
1.055.618
117.917
-
-
-
1.240.507
Prior Period
1.376.845
62.683
930.952
383.210
1.376.845
Current Period
2.477.235 131.325 2.209.147 136.763 110.255 10.255 100.000 2.587.490 Prior Period
1.240.507
66.972
1.055.618
117.917
1.240.507
1.3.Cash and Cash Equivalents at the End of the Period:
Cash
Cash Equivalents
Banks-Time Deposit
158
VII.Explanations on the Risk Group of the Bank
1. Transaction Volume of the Risk Group of the Bank, Outstanding Loan and Deposit Balances and Current Income and Expense
Amounts
1.1. Current Period (31.12.2009):
Associates
in the Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
63.903 2.215 -
-
88.820 58.989
52.357
9.225
-
-
220.914
68.491
17.917
-
-
-
25.148
1
1.2. Prior Period (31.12.2008):
Associates
in the Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
76
432
-
-
27.587
33.530
63.903
2.215
-
-
88.820
58.989
6.654
-
-
-
8.985
120
159
1.3. Risk Group Deposits Balances of the Bank:
Profit Share Expense
Subsidiaries and Associates Current Period
48.108 56.994
6.803
Direct and Indirect
Current Period
-
-
-
in the Risk Group
Current Period
77.269
77.749
4.553
1.4.Informations on Forward and Option Agreements and Other Similar Agreements with Related Parties:
None.
1.5.Informations on Compensation of Key Management Personnel:
During the current period, the total amount of remuneration and benefits provided to the key management personnel of the Bank is TRY 8.954
Thousand (December 31, 2008: TRY 7.138 Thousand). Besides remuneration, the key management personnel also receives some further tangible
rights.
VIII.Explanations on the Bank’s Domestic Branches, Agencies and Branches Abroad and Off-shore Branches
1. Explanations on the Bank’s Domestic Branches, Agencies and Branches Abroad and Off-shore Branches
Number
Employees
Domestic Branches
158
4.074
Rep-Offices Abroad
-
-
Branches Abroad
-
-
Off-shore Branches
-
-
2. Explanations on Branch and Agency Openings or Closings of the Bank:
The Bank opened 9 new branches in 2009.
Country
-
-
-
Total Assets
-
-
Capital
-
160
SECTION SIX
OTHER EXPLANATIONS
I. Other Disclosures:
1. Subsequent Events:
As of February 4, 2010, the Bank has paid for TRY 21.548 Thousand of capital commitment and as a consequence, became owner of 40%
of Tamwell Africa Holding SA that is owned by the Islamic Corporation for the Development of the Private Sector (“ICD”) which is a group
establishment of the Islamic Development Bank (“IDB”).
SECTION SEVEN
I.Explanations on the Independent Auditor’s Report
The financial statements of the Bank for the period January 1 – December 31, 2009 were audited by DRT Bağımsız Denetim ve Serbest Muhasebeci
Mali Müşavirlik A.Ş. (Member of Deloitte Touche Tohmatsu).
The independent auditor’s report is presented at the beginning of the financial statements and related notes.
II.Other Footnotes and Explanations Prepared by the Independent Auditors
There is no significant matter or disclosure which may be in connection with the Bank’s operations but not explained in the above sections.
161
Independent Auditors’ Report, Consolidated Financial Statements and Notes
162
To the Board of Directors of
Istanbul
We have audited the accompanying consolidated balance sheet of Asya Katılım Bankası A.Ş. (“the Bank”) and its financial subsidiaries (“the Group”)
as at December 31, 2009, and the related consolidated statements of income, cash flows and changes in equity for the year then ended, and a
summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements:
The Board of Directors of the Bank is responsible for the preparation and fair presentation of the financial statements in accordance with the
regulation on “Procedures and Principles Regarding Banks’ Accounting Practices And Maintaining Documents” published in the Official Gazette
dated November 1, 2006 and numbered 26333 and Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”) and
other regulations, circulars, communiqués and pronouncements in respect of accounting and financial reporting made by Banking Regulation and
Supervision Agency (“BRSA”). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation
and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility:
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the
regulation on “Licensing and Operations of Audit Firms in Banking” published in the Official Gazette No: 26333 on November 1, 2006 and the
International Standards on Auditing. We planned and performed our audit to obtain reasonable assurance whether the financial statements are
free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the consideration of the effectiveness of internal
control and appropriateness of accounting policies applied relevant to the entity’s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Independent Auditors’ Opinion:
In our opinion, accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Group as at
December 31, 2009 and the results of its operations and its cash flows for the year then ended in accordance with the prevailing accounting
principles and standards set out as per Article 37 and 38 of the Banking Act No: 5411 and other regulations, circulars, communiqués and circulars
in respect of accounting and financial reporting and pronouncements made by Banking Regulation and Supervision Agency.
Additional paragraph for English translation:
The effect of the differences between the accounting principles summarized in Section 3 and the accounting principles generally accepted in
countries in which the accompanying financial statements are to be distributed and International Financial Reporting Standards (IFRS) have not
been quantified and reflected in the accompanying financial statements. The accounting principles used in the preparation of the accompanying
financial statements differ materially from IFRS. Accordingly, the accompanying financial statements are not intended to present the Group’s
financial position and results of its operations in accordance with accounting principles generally accepted in such countries of users of the
financial statements and IFRS.
DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş.
Member of DELOITTE TOUCHE TOHMATSU
Sibel Türker
Partner
Istanbul, March 19, 2010
163
The Consolidated Financial Report of Asya Katılım Bankası A.Ş.
Address of the Headquarter of the Bank
Phone and Fax Numbers of the Bank
Website of the Bank Electronic Mail Address
: Küçüksu Caddesi Akçakoca Sokak No: 6 34768 Ü
mraniye/İSTANBUL
: 0 216 633 50 00/0 216 633 50 24
: www.bankasya.com.tr
: [email protected]
The consolidated financial report designed by the Banking Regulation and Supervision Agency in line with Communiqué on “Financial Statements
to be Publicly Announced and the Related Policies and Disclosures” consists of the sections listed below:
• GENERAL INFORMATION ABOUT THE PARENT BANK
• CONSOLIDATED FINANCIAL STATEMENTS OF THE PARENT BANK
• EXPLANATIONS ON THE CORRESPONDING ACCOUNTING POLICIES APPLIED IN THE RELATED PERIOD
• INFORMATION ON CONSOLIDATED FINANCIAL STRUCTURE OF THE GROUP
• EXPLANATORY DISCLOSURES AND FOOTNOTES ON CONSOLIDATED FINANCIAL STATEMENTS
• OTHER EXPLANATIONS
• INDEPENDENT AUDITORS’ REPORT
The subsidiaries consolidated within the framework of the reporting package are as follows:
Subsidiaries
(1) Işık Sigorta A.Ş.
(2) Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.
Investments in Associates
-
-
Joint Ventures
-
The consolidated financial statements and the explanatory footnotes and disclosures, unless otherwise indicated, are prepared in Thousands of
the Turkish Lira, in accordance with the Communiqué on Banks’ Accounting Practice and Maintaining Documents, Turkish Accounting Standards,
Turkish Financial Reporting Standards, related communiqués and the Banks’ records, have been independently audited and presented as attached.
March 19, 2010
Behçet AKYAR
Cemil ÖZDEMİR
Chairman of the Board Member of the Board of Directors
and General Manager
Kamil YILMAZ
Assistant General Manager
Member of the Board and Member
Responsible of Financial Reporting of the Audit Committee
Tacettin NEGİŞ
Member of the Board and
Member of the Audit Committee
İsmail Erol İŞBİLEN
Member of the Board and
Member of the Audit
Committee
Responsible personnel for the questions that can be raised on the financial statements:
Name-Surname/Title: Mehmet ARSLAN/Assistant Manager in Charge of Budgeting and Financial Controlling
Telephone Number: 0 216 633 54 91
Fax Number
: 0 216 633 50 24
164
GENERAL INFORMATION
I.
Incorporation Date, Initial Status and Subsequent Changes in the Existing Status of the Parent Bank
II.
Shareholding Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management of the
Parent Bank and the Disclosures on any Related Changes in the Current Year, if any
III.
Explanations Regarding the Chairman and the Members of Board of Directors, Audit Committee, General Manager and
Assistants and Shares of the Parent Bank They Possess
IV. Individuals and Institutions that have Qualified Shares in the Parent Bank
V. Summary on the Functions and Areas of Activity of the Parent Bank
Page
166
166
166
167
167
SECTION TWO
THE CONSOLIDATED FINANCIAL STATEMENTS
I.
Consolidated Balance Sheet
II. Consolidated Statement of Off-Balance Sheet Contingencies and Commitments
III.
Consolidated Statement of Income
IV.
Statement of Profit and Loss Items Accounted under Equity
V.
Consolidated Statement of Changes in Shareholders’ Equity
VI.
Consolidated Statement of Cash Flows
VII. Consolidated Profit Distribution Table
168
170
172
173
174
175
176
SECTION THREE
II.
Explanations on Usage Strategy of Financial Assets and Foreign Currency Transactions
III. Information about the Parent Bank and its Consolidated Subsidiaries
IV.
Explanations on Forward and Option Contracts and Derivative Instruments
V.
Explanations on Profit Share Income and Expenses
VI.
Explanations on Fees and Commission Income and Expenses
VII. Explanations on Financial Assets
VIII. Explanations on Impairment of Financial Assets
IX. Explanations on Offsetting Financial Assets and Liabilities
X.
Explanations on Sales and Repurchase Agreements and Lending of Securities
XI. Explanations on Assets Held for Sale, Discontinued Operations and Liabilities Related to Those Assets
XII. Explanations on Goodwill and Other Intangible Assets
XIII. Explanations on Tangible Fixed Assets
XIV. Explanations on Leasing Transactions
XV. Explanations on Provisions and Contingent Liabilities
XVI. Explanations on Liabilities for Employee Benefits XVII. Explanations on Taxation
XVIII. Additional Disclosures on Borrowings
XIX. Explanations on Exported Share Certificates XX. Explanations on Acceptances
XXI. Explanations on Government Incentives
XXII. Explanations on Reporting According to Segmentation
XXIII. Explanations on Other Matters
178
178
178
179
179
179
179
181
181
181
181
182
182
183
183
183
183
184
184
184
184
184
185
165
SECTION FOUR
INFORMATION ON THE CONSOLIDATED FINANCIAL STRUCTURE
I.
Explanations Related to the Consolidated Capital Adequacy Standard Ratio
II. Explanations Related to Consolidated Credit Risk
III. Explanations Related to the Consolidated Market Risk
IV.
Explanations Related to Consolidated Operational Risk
V. Explanations Related to the Consolidated Currency Risk
VI.
Explanations Related to Consolidated Interest Rate Risk
VII. Explanations Related to Consolidated Liquidity Risk
IX. Fiduciary Operations and Transactions Made on Behalf of Others
Page
186
188
191
192
192
195
195
197
199
SECTION FIVE
EXPLANATIONS AND DISCLOSURES ON THE CONSOLIDATED FINANCIAL STATEMENTS
I. Explanations and Disclosures Related to the Consolidated Assets
II.
Explanations and Disclosures Related to the Consolidated Liabilities
III.
Explanations and Disclosures Related to the Consolidated Off-Balance Sheet Contingencies and Commitments
IV.
Explanations and Disclosures Related to the Consolidated Income Statement
V.
Explanations and Disclosures Related to the Statements of Shareholders’ Equity Movement
VII. Explanations on the Risk Group of the Parent Bank
VIII. Explanations on the Parent Bank’s Domestic Branches, Agencies and Branches Abroad and Off-Shore Branches
200
219
226
230
233
234
234
236
SECTION SIX
OTHER EXPLANATIONS I.
Other Explanations on Operations of the Group:
236
SECTION SEVEN
I.
Explanations on the Independent Auditor’s Report
II.
Other Footnotes and Explanations Prepared by the Independent Auditors
236
236
166
Notes to the Consolidated Financial Statements for the Year Ended December 31, 2009
SECTION ONE
GENERAL INFORMATION
I.Incorporation Date, Initial Status and Subsequent Changes in the Existing Status of the Parent Bank
Incorporation of the Parent Bank is permitted with the decision of the Council of Ministers No: 96/8041 on April 11, 1996 as published in the
Official Gazette dated April 25, 1996. The Parent Bank was registered on September 20, 1996 and “the Articles of Association” was published in the
Trade Registry Gazette on September 25, 1996. The decision regarding the change in the title of the Bank was settled in the Extraordinary General
Board of Directors’ meeting dated December 22, 2005 and the title was changed from Asya Finans Kurumu A.Ş. into Asya Katılım Bankası A.Ş. and it
was published in the Trade Registry Gazette on December 26, 2005.
Information on Consolidated Subsidiaries:
Işık Sigorta A.Ş.
Işık Sigorta A.Ş. (“the Company”) was established in 1995 in İstanbul and operates in various insurance and reinsurance sectors excluding life
insurance.
The Company is registered in Turkey, and it’s headquarter is located in Küçüksu Cad. Akçakoca Sok. No: 6 34768 Ümraniye, İstanbul.
The Company currently has 180 personnel as of December 31, 2009. Işık Sigorta A.Ş. currently has 4 regional management office, 2 regional
representation office and 940 (including the Bank branches) agencies.
Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.
Based on the announcement of the Capital Market Board dated August 13, 2009, it has been permitted transformation of the subsidiary of the
Parent Bank “Asyafin Turizm İnşaat San. A.Ş.” into “Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.” with the decision dated 27 March 2009 and numbered
7/194. The transformation and registration have been completed as of September 30, 2009 and “the Articles of Association’’ has been published in
the Trade Registry Gazette on October 8, 2009.
The company’s main operations are development of residential and saleable real estate and generation of rental revenue from its own real estate
portfolio.
The company is registered in Turkey, and its headquarter is located in Küçüksu Cad. Akçakoca Sok. No: 6/1 Ümraniye, İstanbul.
The company currently has 1 personnel as of December 31, 2009.
II.Shareholding Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management of the Parent Bank
and the Disclosures on any Related Changes in the Current Year, if any
The Parent Bank has no shareholders having more than 10% shareholding or direct or indirect, joint or individual control over the management of
the Parent Bank. The Parent Bank is not included in any group.
III.Explanations Regarding the Chairman and the Members of Board of Directors, Audit Committee, General Manager and Assistants
and Shares of the Parent Bank They Possess
Title
Name & Surname
Chairman of the Board of Directors Tahsin TEKOĞLU (**)
Member of the Board of Directors Cemil ÖZDEMİR (*)
Tacettin NEGİŞ (***)
Salih SARIGÜL Ahmet ÇELİK
Murat SUNGURLU
General Manager
Ünal KABACA (*)
Assistant General Managers
Ayhan KESER
Mustafa BÜYÜKATEŞ (****)
Buket GEREÇCİ
Dr. Mahmut DEMİRKAN (****)
Ali TUĞLU
Group Manager
Salim KÖSE
Auditors
Ali AKBULUT
Atif BİLGİN İrfan HACIOSMANOĞLU
Area of Responsibility
Ownership Percentage %
Chairman of the Board of Directors and Member of the Audit Committee
0,0050
Vice Chairman of the Board of Directors and Member of the Audit Committee
0,0026
0,2467
0,4983
0,4467
0,1073
Member of the Board and General Manager
0,0267
Corporate/Commercial Loans, Business Banking, Treasury, Financial Institutions
and Public Relations
0,0069
Retail Sales Management, Retail Product Management, ADC (Alternative
Distribution Channels) Marketing and Consumer Loans
Financial Affairs, Credit Allocation and Financial Analysis
Banking Operations
Human Resources, Education, Administrative, Purchase and Organization and Quality Information Technologies
Law, Credit and Risk Monitoring
Auditor
0,0002
Auditor
0,3057
Auditor
2,0068
167
(*) Board member and President-CEO Mr. Ünal Kabaca has resigned from his position as of January 28, 2010. Vice-Chairman of the Board Mr. Cemil
ÖZDEMİR has appointed as the new President & CEO and Mr. Behçet AKYAR has assigned as a new board member.
(**) Tahsin TEKOĞLU was resigned from chairman position and board of directors membership in February 12, 2010. Afterwards, Behçet AKYAR has
been selected as the Board President whereas İsmail Erol İŞBİLEN has been selected as Board of Directors and Audit Committee Member.
(***) Tacettin NEGİŞ was selected as Audit Committee member as of February 12, 2010.
(****) Assistant General Manager Mr. Mustafa BÜYÜKATEŞ and Mr. Mahmut DEMİRKAN have resigned from their position as of February 26, 2010.
Ali Fuat TAŞKESENLİOĞLU, Erdal ERDEM, Ömer Faruk ŞENEL and Hasan ÜNAL was selected as Assistant General Manager member as of March 8,
2010.
IV. Individuals and Institutions that have Qualified Shares in the Parent Bank
The Parent Bank’s capital, amounting TRY 900.000.000, consists of qualified shares, amounting TRY 360.000.000 and qualified shareholders are
listed below:
Name & Surname/Commercial Title
ORTADOĞU TEKSTİL TİC. SAN. A.Ş.
FORUM İNŞAAT DEKORASYON TURİZM SAN. VE TİC. A.Ş.
ABDULKADİR KONUKOĞLU
BJ TEKSTİL TİCARET VE SANAYİ A.Ş.
BİRİM BİRLEŞİK İNŞAATÇILIK MÜMESSİLLİK SAN. VE TİC. A.Ş.
SERRA TURİZM LTD. ŞTİ.
OSMAN CAN PEHLİVAN
HASAN SAYIN
NEGİŞ GİYİM İMALAT VE İHRACAT A.Ş.
İBRAHİM SAYIN
MUAMMER İHSAN KALKAVAN
İRFAN HACIOSMANOĞLU
AYDAN AYDIN SAĞLIK
FEHİM ARICI
YAVUZ EROĞLU
ABDURRAHMAN KOPUZ
DİĞER
Total
Share Amount
37.992
22.565
20.088
18.000
17.783
15.000
14.400
13.430
13.142
12.679
7.456
6.861
5.952
5.580
5.220
3.960
139.892
360.000
Share Ratio
10,55
6,27
5,58
5,00
4,94
4,17
4,00
3,73
3,65
3,52
2,07
1,91
1,65
1,55
1,45
1,10
38,86
100,00 Paid Shares
37.992
22.565
20.088
18.000
17.783
15.000
14.400
13.430
13.142
12.679
7.456
6.861
5.952
5.580
5.220
3.960
139.892
360.000
Unpaid Shares
-
V. Summary on the Functions and Areas of Activity of the Parent Bank
The Parent Bank operates in accordance with the principles of interest-free banking as a participation bank, by collecting funds through current
accounts and profit sharing accounts, and lending such funds through production support, finance lease and profit/loss sharing partnership.
The Parent Bank has two ways of collecting funds; current accounts and profit sharing accounts. The Parent Bank classifies current accounts and
profit sharing accounts in accordance with their maturities in its accounting system. Profit sharing accounts are categorized into five different
maturity groups; up to one month, up to three months (three months included), up to six months (six months included), up to one year and one
year (one year included) and more than one year (one month, three months, six months and one year profit share payment).
The Parent Bank could determine the participation rates on profit/loss sharing accounts with respect to the maturity group of TRY and foreign
currency accounts, separately under the limitation that the participation rate on loss shall not be less than 50%, for different currency type,
amount and maturity groups specifically.
The Parent Bank constitutes specific fund pools, allocated to the individually predetermined projects for financing purposes. Profit sharing
accounts, which are part of the funds collected for project financing purpose, are distinguished from others with respect to the terms, accounted
separately from the others and it is not allowed to make any transfers from these accounts to any other maturity groups. Specific fund pools are
clarified at the end of the financing period. The Parent Bank has no specific fund pools as of December 31, 2009.
In addition to the regular banking activities, the Parent Bank operates as an agency on behalf of Işık Sigorta A.Ş. and intervenes stock purchase-sell
transactions on behalf of Bizim Menkul Değerler A.Ş. through its branches.
168
Audited
Audited
ASSETS
Note (31/12/2009)
(31/12/2008)
TRY
FC
Total
TRY
FC
Total
I.
CASH AND BALANCES WITH THE CENTRAL BANK
(1)
979.397 1.365.613 2.345.010 686.699 442.872 1.129.571
II.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (Net) (2)
18.791 3.889 22.680 13.869 30.035 43.904
2.1
Trading financial assets
18.791 3.889 22.680 13.869 30.035 43.904
-
-
-
-
-
2.1.2 Share certificates
18.791 -
18.791 13.866 -
13.866
2.1.3 Derivative financial assets held for trading -
3.889 3.889 -
30.035 30.035
-
-
-
3
-
3
2.2
Financial assets at fair value through profit and loss
-
-
-
-
-
-
-
-
-
-
2.2.2 Share certificates -
-
-
-
-
2.2.3 Loans -
-
-
-
-
-
-
-
-
-
III.
BANKS (3)
33.777 139.389 173.166 33.471 108.408 141.879
IV.
MONEY MARKET PLACEMENTS
-
-
-
-
-
V.
FINANCIAL ASSETS AVAILABLE FOR SALE (Net)
(4)
80.335 -
80.335 131 -
131
5.1
Share certificates 224 -
224 131 -
131
5.2
Public sector debt securities -
-
-
-
-
5.3
Other marketable securities 80.111 -
80.111 -
-
VI.
LOANS AND RECEIVABLES
(5)
7.563.752 632.923 8.196.675 5.875.577 271.989 6.147.566
6.1
Loans and receivables
7.430.475 632.281 8.062.756 5.748.734 270.670 6.019.404
6.1.1. Loans to risk group of the Bank
267.900 5.134 273.034 142.563 9.597 152.160
6.1.2. Public sector debt securities -
-
-
-
-
6.1.3. Other
7.162.575 627.147 7.789.722 5.606.171 261.073 5.867.244
6.2
Non-performing loans
454.360 1.850 456.210 322.795 1.953 324.748
6.3
Specific provisions (-) (321.083)
(1.208)
(322.291)
(195.952)
(634)
(196.586)
VII.
HELD TO MATURITY INVESTMENTS (Net)
(6)
76.460 -
76.460 -
-
VIII. INVESTMENTS IN ASSOCIATES (Net)
(7)
45.063 -
45.063 23.975 -
23.975
8.1
Accounted for under equity method -
-
-
-
-
8.2
Unconsolidated
45.063 -
45.063 23.975 -
23.975
8.2.1 Financial associates -
-
-
-
-
8.2.2 Non-financial associates 45.063 -
45.063 23.975 -
23.975
IX.
INVESTMENTS IN SUBSIDIARIES (Net) (8)
56.986 -
56.986 94.843 -
94.843
9.1
Unconsolidated financial subsidiaries
34 -
34 34 -
34
9.2
Unconsolidated non-financial subsidiaries 56.952 -
56.952 94.809 -
94.809
X.
ENTITIES UNDER COMMON CONTROL (Net) (9)
-
-
-
-
-
10.1 Consolidated under equity method -
-
-
-
-
10.2 Unconsolidated -
-
-
-
-
10.2.1 Financial subsidiaries -
-
-
-
-
10.2.2 Non-financial subsidiaries -
-
-
-
-
XI.
FINANCE LEASE RECEIVABLES
(10)
124.807 33.864 158.671 233.676 -
233.676
11.1 Finance lease receivables 141.774 38.916 180.690 264.791 -
264.791
11.2 Operating lease receivables
-
-
-
-
-
11.3 Other
-
-
-
-
-
11.4 Unearned income (-) (16.967)
(5.052)
(22.019)
(31.115)
-
(31.115)
XII.
DERIVATIVE FINANCIAL ASSETS FOR HEDGING PURPOSES (11)
-
-
-
-
-
12.1 Fair value hedge -
-
-
-
-
12.2 Cash flow hedge -
-
-
-
-
12.3 Hedge of net investment risks in foreign operations
-
-
-
-
-
XIII. TANGIBLE ASSETS (Net) (12)
310.993 -
310.993 227.493 -
227.493
XIV. INTANGIBLE ASSETS (Net) (13)
14.364 -
14.364 10.447 -
10.447
14.1 Goodwill 4.111 -
4.111 4.111 -
4.111
14.2 Other 10.253 -
10.253 6.336 -
6.336
XV. INVESTMENT PROPERTY (Net) (14)
37.973 -
37.973 963 -
963
XVI. TAX ASSET (15)
5.946 -
5.946 2.432 -
2.432
16.1 Current tax asset -
-
-
-
-
16.2 Deferred tax asset
5.946 -
5.946 2.432 -
2.432
XVII. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net)
(16)
9.196 -
9.196 24.100 -
24.100
17.1 Held for Sale
9.196 -
9.196 24.100 -
24.100
17.2 Discontinued Operations
-
-
-
-
-
XVIII. OTHER ASSETS (17)
202.515 2.519 205.034 70.091 3.938 74.029
TOTAL ASSETS
9.560.355 2.178.197 11.738.552 7.297.767 857.242 8.155.009
169
Audited
Audited
LIABILITIES AND EQUITY
Note (31/12/2009)
(31/12/2008)
I.
FUND COLLECTED
(1)
5.937.462 3.147.772 9.085.234 3.566.718 2.235.643 5.802.361
1.1 Fund from risk group of the Bank
57.381 26.018 83.399 31.198 53.719 84.917
1.2
Other
5.880.081 3.121.754 9.001.835 3.535.520 2.181.924 5.717.444
II.
DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING (2)
-
155 155 -
-
III.
FUNDS BORROWED (3)
-
191.461 191.461 -
457.552 457.552
IV.
MONEY MARKET BALANCES -
-
-
-
-
V.
MARKETABLE SECURITIES ISSUED (NET)
-
-
-
-
-
VI.
SUNDRY CREDITORS 200.003 4.212 204.215 150.264 4.642 154.906
VII.
OTHER LIABILITIES (4)
185.628 12.658 198.286 102.124 9.429 111.553
VIII. FINANCE LEASE PAYABLES
(5)
-
-
-
6
-
6
8.1
Finance lease payables
-
-
-
6
-
6
8.2
Operating lease payables
-
-
-
-
-
8.3
Other -
-
-
-
-
8.4
Deferred finance lease expenses (-)
-
-
-
-
-
IX. DERIVATIVE FINANCIAL LIABILITIES FOR HEDGING PURPOSES
(6)
-
-
-
-
-
9.1
Fair value hedge
-
-
-
-
-
9.2
Cash flow hedge
-
-
-
-
-
9.3
Hedge of net investment in foreign operations -
-
-
-
-
X. PROVISIONS
(7)
193.604 15.539 209.143 161.020 12.316 173.336
10.1 General loan loss provisions
75.756 13.612 89.368 61.625 10.661 72.286
10.2 Restructuring provisions
-
-
-
-
-
10.3 Reserve for employee benefits
18.103 -
18.103 14.942 -
14.942
10.4 Insurance technical reserves (Net)
78.420 518 78.938 65.957 64 66.021
10.5 Other provisions
21.325 1.409 22.734 18.496 1.591 20.087
XI.
TAX LIABILITY
(8)
50.636 6
50.642 39.892 3
39.895
11.1 Current tax liability
50.636 6
50.642 38.642 3
38.645
11.2 Deferred tax liability
-
-
-
1.250 -
1.250
XII.
PAYABLES RELATED TO ASSETS HELD FOR SALE (Net)
(9)
-
-
-
-
-
12.1 Held for sale
-
-
-
-
-
12.2 Discontinued operations
-
-
-
-
-
XIII. SUBORDINATED LOANS
(10)
-
-
-
-
-
XIV. SHAREHOLDERS’ EQUITY
(11)
1.799.416 - 1.799.416 1.415.400 -
1.415.400
14.1 Paid-in capital
900.000 -
900.000 900.000 -
900.000
14.2 Capital reserves
10.503 -
10.503 7.582 -
7.582
14.2.1 Share premium
3.307 -
3.307 3.307 -
3.307
14.2.2 Share cancellation profits
-
-
-
-
-
14.2.3 Marketable securities revaluation reserve
2.921 -
2.921 -
-
14.2.4 Tangible assets revaluation reserve
4.275 -
4.275 4.275 -
4.275
14.2.5 Intangible assets revaluation reserve
-
-
-
-
-
14.2.6 Investment property revaluation reserve
-
-
-
-
-
14.2.7 Bonus shares obtained from associates, subsidiaries and jointly controlled entities
-
-
-
-
-
14.2.8 Hedging funds (Effective portion)
-
-
-
-
-
14.2.9 Value increase on assets held for resale
-
-
-
-
-
14.2.10 Other capital reserves
-
-
-
-
-
14.3 Profit reserves
491.609 -
491.609 250.073 -
250.073
14.3.1 Legal reserves
38.378 -
38.378 26.053 -
26.053
14.3.2 Status reserves
-
-
-
-
-
14.3.3 Extraordinary reserves
453.231 -
453.231 224.020 -
224.020
14.3.4 Other profit reserves
-
-
-
-
-
14.4 Profit or loss
291.813 -
291.813 240.119 -
240.119
14.4.1 Prior year income/(losses)
(13.978)
-
(13.978)
1.329 -
1.329
14.4.2 Current year income/(losses)
305.791 -
305.791 238.790 -
238.790
(12)
105.491 -
105.491 17.626 -
17.626
TOTAL LIABILITIES AND EQUITY
8.366.749
3.371.803 11.738.552
5.435.424 2.719.585 8.155.009
170
Audited
Audited
Note (31/12/2009)
(31/12/2008)
TRY
FC
Total
TRY
FC
Total
A. OFF BALANCE SHEET COMMITMENTS AND CONTINGENCIES (I+II+III)
6.632.958 5.627.280 12.260.238 6.848.787 6.016.960 12.865.747
I.
GUARANTEES
(1), (2)
3.984.518 4.901.459 8.885.977 4.600.807 5.614.608 10.215.415
1.1.
Letters of guarantees
3.968.241 3.401.220 7.369.461 4.594.063 4.052.510 8.646.573
1.1.1. Guarantees subject to State Tender Law -
-
-
-
-
1.1.2. Guarantees given for foreign trade operations
-
-
-
-
-
1.1.3. Other letters of guarantee
3.968.241 3.401.220 7.369.461 4.594.063 4.052.510 8.646.573
1.2.
Bank loans -
120.412 120.412 -
169.474 169.474
1.2.1. Import letter of acceptances
-
120.412 120.412 -
169.474 169.474
1.2.2. Other bank acceptances
-
-
-
-
-
1.3.
Letter of credits
270 1.249.850 1.250.120 41 1.221.227 1.221.268
1.3.1. Documentary letter of credits
-
-
-
-
-
1.3.2. Other letter of credits
270 1.249.850 1.250.120 41 1.221.227 1.221.268
1.4.
Prefinancing given as guarantee
-
-
-
-
-
1.5.
Endorsements
-
-
-
-
-
1.5.1. Endorsements to the Central Bank of Turkey
-
-
-
-
-
1.5.2. Other endorsements
-
-
-
-
-
1.6.
Other guarantees
16.007 129.977 145.984 6.703 171.397 178.100
1.7.
Other collaterals
-
-
-
-
-
II.
COMMITMENTS
(1), (2)
2.196.163 277.122 2.473.285 1.809.786 5.816 1.815.602
2.1.
Irrevocable commitments
2.196.163 277.122 2.473.285 1.809.786 5.816 1.815.602
2.1.1. Forward asset purchase commitments
240.276 254.576 494.852 1.537 5.816 7.353
2.1.2. Share capital commitment to associates and subsidiaries
7.153 22.546 29.699 6.869 -
6.869
2.1.3. Loan granting commitments
140.538 -
140.538 128.301 -
128.301
2.1.4. Securities underwriting commitments
-
-
-
-
-
2.1.5. Commitments for reserve deposit requirements
-
-
-
-
-
2.1.6. Payment commitment for checks
434.811 -
434.811 408.821 -
408.821
2.1.7. Tax and fund liabilities from export commitments
1.596 -
1.596 -
-
2.1.8. Commitments for credit card expenditure limits
1.365.927 -
1.365.927 1.256.191 -
1.256.191
2.1.9. Commitments for promotions related with credit cards and banking activities
5.862 -
5.862 8.067 -
8.067
2.1.10. Receivables from short sale commitments
-
-
-
-
-
2.1.11. Payables for short sale commitments
-
-
-
-
-
2.1.12. Other irrevocable commitments
-
-
-
-
-
2.2.
Revocable commitments
-
-
-
-
-
2.2.1. Revocable loan granting commitments
-
-
-
-
-
2.2.2. Other revocable commitments
-
-
-
-
-
III.
DERIVATIVE FINANCIAL INSTRUMENTS
(4)
452.277 448.699 900.976 438.194 396.536 834.730
3.1.
Derivative financial instruments for hedging purposes
-
-
-
-
-
3.1.1. Fair value hedge
-
-
-
-
-
3.1.2. Cash flow hedge
-
-
-
-
-
3.1.3. Hedge of net investment in foreign operations
-
-
-
-
-
3.2.
Held for trading transactions
452.277 448.699 900.976 438.194 396.536 834.730
3.2.1. Forward foreign currency buy/sell transactions
452.277 448.699 900.976 438.194 396.536 834.730
3.2.1.1. Forward foreign currency transactions-buy
452.277 -
452.277 438.194 -
438.194
3.2.1.2. Forward foreign currency transactions-sell
-
448.699 448.699 -
396.536 396.536
3.2.2. Other Forward buy/sell transactions
-
-
-
-
-
3.3.
Other
-
-
-
-
-
-
171
Audited
Audited
Note (31/12/2009)
(31/12/2008)
TRY
FC
Total
TRY
FC
Total
B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) 86.043.258 63.997.965 150.041.223 70.017.593 57.208.709 127.226.302
IV.
ITEMS HELD IN CUSTODY
620.403 366.541 986.944 587.342 785.871 1.373.213
4.1.
Assets under management
-
-
-
-
-
4.2.
Investment securities held in custody
2.885 -
2.885 2.885 -
2.885
4.3.
Checks received for collection
498.606 198.477 697.083 431.058 272.104 703.162
4.4.
Commercial notes received for collection
118.907 65.752 184.659 153.260 69.617 222.877
4.5.
Other assets received for collection
-
63.335 63.335 -
444.120 444.120
4.6.
Assets received for public offering
-
-
-
-
-
4.7.
Other items under custody
4
-
4
139 30 169
4.8.
Custodians
1
38.977 38.978 -
-
V.
PLEDGED ITEMS 85.422.855 63.631.424 149.054.279 69.430.251 56.422.838 125.853.089
5.1.
Marketable securities
488.378 293.318 781.696 351.244 299.026 650.270
5.2.
Guarantee notes
29.086.179 24.163.628 53.249.807 23.828.375 21.440.634 45.269.009
5.3.
Commodity
1.522.022 402.926 1.924.948 948.499 336.811 1.285.310
5.4.
Warranty
-
-
-
-
-
5.5.
Properties
12.372.061 1.218.189 13.590.250 10.458.296 1.306.210 11.764.506
5.6.
Other pledged items
41.954.215 37.553.363 79.507.578 33.843.837 33.040.157 66.883.994
5.7.
Pledged items-depository
-
-
-
-
-
VI.
ACCEPTED INDEPENDENT GUARANTEES AND WARRANTIES
-
-
-
-
-
TOTAL OFF BALANCE SHEET ACCOUNTS (A+B) 92.676.216 69.625.245 162.301.461 76.866.380 63.225.669 140.092.049
172
Consolidated Statement of Income (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
STATEMENT OF INCOME
Note
I.
PROFIT SHARE INCOME
(1)
1.1
Profit share on loans
1.2
Profit share on reserve deposits
1.3
Profit share on banks
1.4
Profit share on money market placements
1.5
Profit share on marketable securities portfolio
1.5.1 Held-for-trading financial assets
1.5.2 Financial assets at fair value through profit and loss
1.5.3 Available-for-sale financial assets
1.5.4 Investment-held for maturity
1.6
Finance lease income
1.7
Other profit share income
II.
PROFIT SHARE EXPENSE
(2)
2.1
Expense on profit sharing accounts
2.2
Profit share expense on funds borrowed
2.3
Profit share expense on money market borrowings
2.4
Expense on securities issued
2.5
Other profit share expense
III.
NET PROFIT SHARE INCOME (I - II)
IV.
NET FEES AND COMMISSIONS INCOME
4.1
Fees and commissions received
4.1.2 Other
(12)
4.2
Fees and commissions paid
4.2.2 Other
(12)
V.
DIVIDEND INCOME
(3)
VI.
NET TRADING INCOME
(4)
6.1
Securities trading gains/(losses)
6.2
Profit on derivative financial instruments gains/(losses)
6.3
Foreign exchange gains/(losses)
VII.
OTHER OPERATING INCOME
(5)
VIII. NET OPERATING INCOME (III+IV+V+VI+VII)
IX.
PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-)
(6)
X.
OTHER OPERATING EXPENSES (-)
(7)
XI.
NET OPERATING INCOME/(LOSS) (VIII-IX-X)
XII.
AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER
XIII. GAIN/(LOSS) ON EQUITY METHOD
XIV. GAIN/(LOSS) ON NET MONETARY POSITION
XV.
PROFIT/(LOSS) FROM CONTINUED OPERATIONS BEFORE TAXES (XI+…+XIV)
(8)
XVI. TAX PROVISION FOR CONTINUED OPERATIONS (±)
(9)
XVII. NET PROFIT/(LOSS) FROM CONTINUED OPERATIONS (XV±XVI)
(10)
XVIII. INCOME ON DISCONTINUED OPERATIONS
18.1 Income on assets held for sale
18.2 Income on sale of associates, subsidiaries and jointly controlled entities (Joint Vent.)
18.3 Income on other discontinued operations
XIX. LOSS FROM DISCONTINUED OPERATIONS (-)
19.1 Loss from assets held for sale
19.2 Loss on sale of associates, subsidiaries and jointly controlled entities (Joint vent.)
19.3 Loss from other discontinued operations
XX.
PROFIT/(LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII-XIX)
XXI. TAX PROVISION FOR DISCONTINUED OPERATIONS (±)
XXII. NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI)
XXIII. NET PROFIT/LOSS (XVII+XXII)
(11)
23.1 Group’s profit/loss
Earnings per share
CURRENT PERIOD
PRIOR PERIOD
Audited
Audited
(01/01/2009-31/12/2009)
(01/01/2008-31/12/2008)
1.322.119 1.071.245
1.203.356 963.490
19.734 25.841
55.239 51.572
-
27.353 329
13.313 294
-
7.020 35
7.020 16.300 30.013
137 (699.572)
(560.771)
(679.857)
(537.786)
(18.259)
(21.630)
-
-
(1.456)
(1.355)
622.547 510.474
245.391 218.982
314.870 289.382
174.517 143.560
140.353 145.822
(69.479)
(70.400)
(69)
(481)
(69.410)
(69.919)
3.588 312
93.888 60.716
-
203.194 15.366
(109.306)
45.350
191.915 141.085
1.157.329 931.569
(220.110)
(171.786)
(551.050)
(457.170)
386.169 302.613
-
-
-
386.169 302.613
(78.351)
(65.277)
(83.845)
(65.212)
5.494 (65)
307.818 237.336
-
-
-
-
-
-
-
-
-
-
-
-
-
307.818 237.336
305.791 238.790
2.027 (1.454)
0,34 0,32
173
Statement of Profit and Loss Items Accounted Under Equity
CURRENT PERIOD
PRIOR PERIOD
Audited
Audited
STATEMENT OF PROFIT AND LOSS ITEMS ACCOUNTED UNDER EQUITY
(01/01/2009-31/12/2009)
(01/01/2008-31/12/2008)
I.
Additions to marketable securities revaluation differences for available for sale financial assets
3.651 II.
Tangible assets revaluation differences -
4.275
III.
-
IV.
Foreign exchange differences for foreign currency transactions
-
V.
Profit/Loss from derivative financial instruments for cash flow hedge purposes
-
VI.
Profit/Loss from derivative financial instruments for hedge of net investment in foreign operations
VII.
The effect of corrections of errors and changes in accounting policies
-
VIII. Other profit loss items accounted under equity due to TAS -
IX.
Deferred tax of valuation differences
(730)
X.
Total Net Profit/Loss accounted under equity (I+II+…+IX)
2.921 4.275
XI.
Profit/Loss
-
11.1 Change in fair value of marketable securities (Transfer to Profit/Loss)
-
11.2 Reclassification and transfer of derivatives accounted for cash flow hedge purposes to Income Statement -
11.3 Transfer of hedge of net investments in foreign operations to Income Statement
-
11.4 Other -
XII.
Total Profit/Loss accounted for the period (X±XI)
2.921 4.275
174
Statement of Changes of Shareholder’s Equity
Effect of inflation
Share
Accounting on Certificate
Paid-in
Capital and Other
Share Cancellation
Legal Statutory
Note Capital
Capital Reserves Premium
Profits Reserves Reserves
PRIOR PERIOD
Audited
(01/01-31/12/2008)
I.
Prior Period Balance - 31.12.2007
300.000 - 150.000 -
14.756 -
II.
Corrections according to TAS 8
-
-
-
-
-
-
2.1.
The effect of corrections of errors
-
-
-
-
-
-
2.2.
The effects of changes in accounting policy
-
-
-
-
-
-
III.
New Balance (I+II)
300.000 - 150.000 -
14.756 -
Changes in period
-
-
-
-
-
-
IV.
-
-
-
-
-
-
V.
-
-
-
-
-
-
VI.
-
-
-
-
-
-
6.1
Cash-flow hedge
-
-
-
-
-
-
6.2
-
-
-
-
-
-
VII.
-
-
-
-
-
-
VIII. Intangible assets revaluation differences
-
-
-
-
-
-
IX.
-
-
-
-
-
-
X.
Foreign exchange differences
-
-
-
-
-
-
XI.
-
-
-
-
-
-
XII.
-
-
-
-
-
-
XIII. The effect of change in associate’s equity
-
-
-
-
-
-
XIV. Capital increase
600.000 - (150.000)
-
-
-
14.1 Cash
300.000 -
-
-
-
-
300.000 - (150.000)
-
-
-
XV.
Share premium
-
-
3.307 -
-
-
XVI. Share cancellation profits
-
-
-
-
-
-
XVII. Inflation adjustment to paid-in capital
-
-
-
-
-
-
XVIII. Other
-
-
-
-
-
-
XIX
Period net income/(loss)
-
-
-
-
-
-
XX.
Profit distribution
-
-
-
-
11.297 -
-
-
-
-
-
-
-
-
-
-
11.297 -
20.3 Other
-
-
-
-
-
-
Closing Balance (III+-…...+XVI+XVII+XVIII)
900.000 -
3.307 -
26.053 -
CURRENT PERIOD
Audited
(01/01-31/12/2009)
I.
Prior Period Balance - 31.12.2008
900.000 -
3.307 -
26.053 -
Changes in period
-
-
-
-
-
-
II.
-
-
-
-
-
-
III.
-
-
-
-
-
-
IV.
-
-
-
-
-
-
4.1
Cash-flow hedge
-
-
-
-
-
-
4.2
-
-
-
-
-
-
V.
-
-
-
-
-
-
VI.
-
-
-
-
-
-
VII.
-
-
-
-
-
-
VIII. Foreign exchange differences
-
-
-
-
-
-
IX.
-
-
-
-
-
-
X.
-
-
-
-
-
-
XI.
The effect of change in associate’s equity
-
-
-
-
-
-
XII.
Capital increase
-
-
-
-
-
-
12.1 Cash
-
-
-
-
-
-
-
-
-
-
-
-
XIII. Share premium
-
-
-
-
-
-
XIV. Share cancellation profits
-
-
-
-
-
-
XV.
Inflation adjustment to paid-in capital
-
-
-
-
-
-
XVI. Other -
-
-
-
-
-
XVII. Period net income/(loss)
-
-
-
-
-
-
XVIII. Profit distribution
-
-
-
-
12.325 -
-
-
-
-
-
-
-
-
-
-
12.325 -
18.3 Other
-
-
-
-
-
-
Closing Balance (I+II+III+-…...+XVI+XVII+XVIII)
900.000 -
3.307 -
38.378 -
175
Statement of Changes of Shareholder’s Equity
Marketable
Tangible and Acc. Val. Diff.
SecuritiesIntangible Assets
Bonusfrom Assets Held
Equity
Extraordinary Other
Current Period
Prior Period Revaluation
Revaluation Shares Obtained Hedging
for Sale and Attributable Minority
Total
Reserve Reserve Net Income/(Loss) Net Income/(Loss)
Reserve
Differences from Associates
Funds from Disc. Op. to the Parent
Shares
Equity
167.811 -
227.621 (4.511)
-
-
-
-
-
855.677 17.803 873.480
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
167.811 -
227.621 (4.511)
-
-
-
-
-
855.677 17.803 873.480
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4.275)
-
4.275 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(150.000)
-
-
-
-
-
-
-
-
300.000 1.277 301.277
-
-
-
-
-
-
-
-
-
300.000 1.277 301.277
(150.000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.307 -
3.307
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
238.790 -
-
-
-
-
-
238.790 (1.454) 237.336
206.209 -
(227.621)
10.115 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
206.209 -
-
(217.506)
-
-
-
-
-
-
-
-
-
(227.621)
227.621 -
-
-
-
-
-
-
224.020 -
238.790 1.329 -
4.275 -
-
- 1.397.774 17.626 1.415.400
224.020 -
238.790 1.329 -
4.275 -
-
- 1.397.774 17.626 1.415.400
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.921 -
-
-
-
2.921 -
2.921
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
900 900
-
-
-
-
-
-
-
-
-
-
900 900
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(12.561)
-
-
-
-
-
(12.561) 84.938 72.377
-
-
305.791 -
-
-
-
-
-
305.791 2.027 307.818
229.211 -
(238.790)
(2.746)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
229.211 -
-
(241.536)
-
-
-
-
-
-
-
-
-
(238.790)
238.790 -
-
-
-
-
-
-
453.231 -
305.791 (13.978)
2.921 4.275 -
-
- 1.693.925 105.491 1.799.416
176
Consolidated Statement of Cash Flows (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
CURRENT PERIOD
PRIOR PERIOD
Audited
Audited
Note
(01/01/2009-31/12/2009)
(01/01/2008-31/12/2008)
A.
CASH FLOWS FROM BANKING OPERATIONS
1.1
Operating profit before changes in operating assets and liabilities
467.141 137.953
1.1.1 Profit share income received
1.213.017 972.324
1.1.2 Profit share expense paid
(717.332)
(532.977)
1.1.3 Dividend received
3.588 312
1.1.4 Fees and commissions received
314.870 289.382
1.1.5 Other income
313.967 106.113
1.1.6 Collections from previously written off loans
21.917 12.114
1.1.7 Payments to personnel and service suppliers
(227.763)
(182.998)
1.1.8 Taxes paid
(94.624)
(79.377)
1.1.9 Others (360.499)
(446.940)
1.2
Changes in operating assets and liabilities
1.089.550 (488.447)
1.2.1 Net (increase) decrease in financial assets
6.522 (13.582)
1.2.2 Net (increase) decrease in financial assets at fair value through profit or loss
-
1.2.3 Net (increase) decrease in due from banks and other financial institutions
(133)
137
1.2.4 Net (increase) decrease in loans
(2.049.806)
(1.387.842)
1.2.5 Net (increase) decrease in other assets
(148.228)
(27.447)
1.2.6 Net increase (decrease) in bank deposits
(1.157)
(2.416)
1.2.7 Net increase (decrease) in other deposits
3.336.630 881.410
1.2.8 Net increase (decrease) in funds borrowed
(215.346)
71.503
1.2.9 Net increase (decrease) in due payables
-
1.2.10 Net increase (decrease) in other liabilities
161.068 (10.210)
I.
Net cash provided from banking operations
1.556.691 (350.494)
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
Net cash provided from investing activities
(205.907)
(74.874)
2.1
Cash paid for purchase of entities under common control, associates and subsidiaries
(22.804)
(23.975)
2.2
Cash obtained from sale of entities under common control, associates and subsidiaries
-
2.3
Fixed assets purchases (44.359)
(53.010)
2.4
Fixed assets sales
11.256 2.174
2.5
Cash paid for purchase of financial assets available for sale
(75.000)
(63)
2.6
Cash obtained from sale of financial assets available for sale
-
2.7
Cash paid for purchase of investment securities
(75.000)
2.8
Cash obtained from sale of investment securities -
2.9
Other
-
C.
CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net cash provided from financing activities 894 290.715
3.1
Cash obtained from funds borrowed and securities issued
-
3.2
Cash used for repayment of funds borrowed and securities issued
-
3.3
Capital increase 900 304.584
3.4
Dividends paid
-
3.5
Payments for finance leases
(6)
(13.869)
3.6
Other -
IV.
Effect of change in foreign exchange rate on cash and cash equivalents
(2.654)
(742)
V.
Net increase in cash and cash equivalents
1.349.024 (135.395)
VI.
Cash and cash equivalents at the beginning of the year
(1)
1.264.471 1.399.866
VII.
Cash and cash equivalents at the end of the year
(1)
2.613.495 1.264.471
177
Consolidated Profit Distribution Table
CURRENT PERIOD
PRIOR PERIOD
Audited
Audited
(01/01-31/12/2009)
(01/01-31/12/2008)
I. DISTRIBUTION OF CURRENT PERIOD PROFIT 1.1
CURRENT PERIOD PROFIT
-
1.2
TAXES AND DUES PAYABLE (-)
-
1.2.1 Corporate Tax (Income Tax)
-
1.2.2 Withholding Tax
-
1.2.3 Other taxes and dues -
A.
NET PERIOD PROFIT (1.1-1.2)
-
1.3
PRIOR YEAR’S LOSSES (-)
-
1.4
FIRST LEGAL RESERVES (-)
-
1.5
OTHER STATUTORY RESERVES (-)
-
B.
DISTRIBUTABLE NET PERIOD PROFIT [(A-(1.3+1.4+1.5)]
-
1.6 FIRST DIVIDEND TO SHAREHOLDERS (-)
-
-
-
-
1.6.5 To Owners of the profit/loss Sharing Certificates
-
1.7 DIVIDEND TO PERSONNEL (-)
-
1.8
DIVIDEND TO BOARD OF DIRECTORS (-)
-
1.9
SECOND DIVIDEND TO SHAREHOLDERS (-)
-
-
-
-
-
-
1.10 SECOND LEGAL RESERVE (-)
-
1.11 STATUS RESERVES (-) -
1.12 EXTRAORDINARY RESERVES -
1.13 OTHER RESERVES
-
1.14 SPECIAL FUNDS
-
II.
DISTRIBUTION FROM RESERVES
2.1
DISTRIBUTED RESERVES
-
2.2
SECOND LEGAL RESERVES (-)
-
2.3
SHARE TO SHAREHOLDERS (-)
-
-
-
-
-
-
2.4
SHARE TO PERSONNEL (-)
-
2.5
SHARE TO BOARD OF DIRECTORS (-)
-
III. EARNINGS PER SHARE
3.1
TO OWNERS OF STOCKS
-
3.2
TO OWNERS OF STOCKS (%)
-
3.3
-
3.4
TO OWNERS OF PREFERRED STOCKS (%)
-
IV. DIVIDEND PER SHARE
-
4.1 TO OWNERS OF STOCKS
-
4.2
TO OWNERS OF STOCKS (%)
-
4.3
-
4.4
TO OWNERS OF PREFERRED STOCKS (%)
-
(*) Based on the prevailing regulations in Turkey, profit distribution is not made on the consolidated income.
178
SECTION THREE
1. Presentation of Financial Statements
The Parent Bank prepares its financial statements and notes in accordance with the Communiqué on Banks’ Accounting Practice and Maintaining
Documents published in the Official Gazette No: 26333 dated November 1, 2006, Turkish Accounting Standards (“TAS”), Turkish Financial Reporting
Standards (“TFRS”), other communiqués, pronouncements and explanations about accounting and financial reporting issued by the Banking
Regulation and Supervision Agency, Turkish Commercial Code and the Tax Legislation.
The Parent Bank prepares financial statements by applying accounting policies and basis of accounting in accordance with the Turkish Accounting
Standards (“TAS”) and related communiqués, pronouncements and explanations issued by the Banking Regulation and Supervision Agency. The
related accounting policies and basis of accounting are explained below.
The prior period financial statements are presented in line with the principles of TAS No: 1 “Fundamentals of Preparing and Presenting Financial
Statements” published in the Official Gazette on January 16, 2005 with No: 25702, and in accordance with Turkish Accounting Standards and
Turkish Financial Reporting Standards; and other principles, methods and explanations about accounting and financial reporting issued by the
BRSA. Certain reclassifications have been made to the prior year financial statements to comply with the current year presentation.
2. Basis of Accounting
The accompanying consolidated financial statements are based on the Group’s legal books. The Group has recorded the adjustments of inflation
accounting to its legal books beginning from June 30, 2004 to December 31, 2004 in accordance with Act No: 5024 of the Tax Procedural Code. As
of December 31, 2003 the consolidated financial statements are prepared in accordance with the legal books and historical cost principle except
for the revaluation of fixed assets and includes adjustments and reclassifications, including restatement for the changes in the general purchasing
power of the Turkish Lira in accordance with International Accounting Standard No: 29 “Financial Reporting in Hyperinflationary Economies” (“TAS
29”) before December 31, 2004 for the purpose of fair presentation.
II.Explanations on Usage Strategy of Financial Assets and Foreign Currency Transactions
The Group manages its financial instrument strategies depending on the financing sources. The sources mainly constitute of the current and profit
sharing accounts. As of the balance sheet date, the Group’s assets and equity structure are sufficient to cover its liabilities. The Group uses 29% of
the funds collected in liquid instruments (December 31, 2008: 22%).
The Group does not carry a significant foreign currency position risk due to the existing floating exchange rate regime. The investment decisions
are made by taking into consideration of the maturity structure of the balance sheet items. The allocation of asset items are designated, and yield
analysis are made based on this designation.
In the statutory books of the Group, the transactions recorded in foreign currencies (all other currencies except Turkish Lira) are translated into
the Turkish Lira at the exchange rates prevailing at the transaction dates. Monetary asset and liabilities denominated in foreign currencies are
translated into the Turkish Lira at the year end exchange rates. Foreign exchange gains or losses arising from the translation of monetary items and
foreign currency denominated collections or disbursements are recognized in the income statement.
III. Information about the Parent Bank and its Consolidated Subsidiaries
Asya Katılım Bankası A.Ş. and its subsidiaries Işık Sigorta A.Ş. and Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. are consolidated by line by line
consolidation method in the accompanying consolidated financial statements. Entities that are consolidated are assessed based on the
communiqué on “Regulations Regarding Banks’ Consolidated Financial Statements” published on Official Gazette numbered 26340 dated
November 8, 2006. The Parent Bank and the consolidated subsidiaries are referred to as “Group”.
The subsidiaries, Işık Sigorta A.Ş. prepares the financial statements in accordance with accounting principles and standards prevailing in Insurance
Law decree numbered 5684 and insurance regulations and Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. prepares the financial statements in conformity
with the Capital Markets Board legislation.
179
When there are differences between the accounting policies of the subsidiaries and the Parent Bank, the financial statements are adjusted in
accordance with the principle of materiality.
Based on the announcement of the Capital Market Board dated August 13, 2009, it has been permitted transformation of the subsidiary of the
Parent Bank “Asyafin Turizm İnşaat San. A.Ş.” into “Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.” with the decision dated 27 March 2009 and numbered
7/194. The transformation and registration have been completed as of September 30, 2009 and “the Articles of Association’’ has been published in
the Trade Registry Gazette on October 8, 2009.
Based on Banking Act No: 5411 and “Regulation Regarding Banks’ Consolidated Financial Statements”, Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. has
been classified as financial subsidiary and consolidated in the financial statements for the first time as of September 30, 2009.
IV.Explanations on Forward and Option Contracts and Derivative Instruments
In determination of fair value of forward and swap transactions, forward rates discounted to the balance sheet date by prevailing rates are
compared with the expected forward rates at maturity calculated based on the prevailing profit share rates as of the balance sheet date and arising
foreign exchange differences are recognized in the income statement. Although some of the derivative transactions provide economic hedging,
since all necessary conditions for hedge accounting have not been met, yet, the Parent Bank classifies these transactions as “held for trading”
therefore changes in the fair value of derivative financial instruments are recognized in profit or loss as they arise in accordance with Turkish
Accounting Standard No: 39 “Financial Instruments: Recognition and Measurement” (“TAS 39”).
V.Explanations on Profit Share Income and Expenses
Profit share income and expenses are recognized in the income statement on an accrual basis.
Realized and unrealized interest accruals of the non-performing loans are reversed and interest income in connection with these loans is recorded
as interest income only when they are collected.
VI.Explanations on Fees and Commission Income and Expenses
Banking service revenues are recognized as income only when they are collected while only the current portion of the prepaid commission income
obtained from loans is recorded as income based on the periodicity principle.
Fees and commissions for funds borrowed paid to other financial institutions, as part of the transaction costs, are recorded as prepaid expenses and
are recognized as expense on the relevant periods.
VII. Explanations on Financial Assets
Financial instruments comprise of financial assets, financial liabilities and derivative instruments. Financial assets and financial liabilities are
recognized on the Group’s consolidated balance sheet when the Group becomes a party to the contractual provisions of the instrument.
Basically, financial assets form majority of the commercial activities and operations of the Group. Financial instruments expose, change or reduce
the liquidity and credit risks of the financial statements.
Fair value is the amount for which an asset could be exchanged or a liability settled, between knowledgeable willing parties in an arms length
transaction. Fair value is best evidenced by a market price, being the amount obtainable from the sale, or payable on the acquisition, of a financial
instrument in an active market, if one exists.
Estimated fair values of financial assets are determined by the Group by using the information about the market and relevant valuation methods.
However, interpretation of market information is necessary to determine fair value. Therefore, estimated fair values presented in this report may
not be necessarily equivalent of the disposal values of such assets derived from current market conditions. Some carrying values of the financial
instruments (which are same with their cost values) are assumed to be equal to their fair values because of their short term nature.
The methods and assumptions used in determining the reasonable estimated values of all financial instruments are mentioned below:
Cash, Banks, and Other Financial Institutions:
Cash and cash equivalents comprise of cash on hand, demand deposits, and highly liquid short-term investments not bearing risk of significant
value change, and that are readily convertible to a known amount of cash. The book value of these financial assets approximate to their fair value.
180
Financial Assets at Fair Value Through Profit and Loss:
Marketable securities at fair value through profit or loss are classified in two categories; i) marketable securities classified as trading securities:
acquired or incurred principally for the purpose of selling or repurchasing it in the near term in order to benefit from short-term profit
opportunities; ii) marketable securities classified as marketable securities at fair value through profit or loss at initial recognition. The Parent Bank
uses the above-mentioned classification when permitted, or for the purposes of providing a more appropriate presentation.
In this group, trading securities are initially recognized at cost and measured at fair value on the financial statements. Fair value of debt securities
traded in an active market is determined based on the quoted prices or current market prices.
The difference between initial cost and fair value of financial assets at fair value through profit and loss is reflected to profit share income or
diminution in value of marketable securities accounts. Profit share income from financial assets at fair value through profit and loss is reflected in
profit share income.
As of December 31, 2009, the Group has TRY 22.680 Thousand of derivative financial assets held for trading at fair value through profit or loss
(December 31, 2008: TRY 43.904 Thousand).
Held to Maturity Investments:
Investments held to maturity include securities with fixed or determinable payments and fixed maturity when there is an intention of holding till
maturity and the relevant conditions for fulfillment of such intention, including the funding ability. This portfolio excludes loans and receivables.
Subsequent to initial recognition, held to maturity investments are measured at amortized cost by using the effective interest rate less impairment
losses, if any. The Group has no financial assets acquired and classified as held to maturity investments that cannot be subject to such classification
for two years because of the nonperformance of tainting rules.
The profit share income received from held to maturity investments is recorded as profit share income in the income statement.
As of December 31, 2009, the Group has TRY 76.460 Thousand of held to maturity investments (December 31, 2008: None).
Financial Assets Available for Sale:
Marketable securities classified as available for sale are initially recognized at cost including the transaction costs. After initial recognition, available
for sale securities are measured at fair value and unrealized gains/losses originating from the difference between the amortized cost and the fair
value are recorded in “Marketable Securities Value Increase Fund” under equity. At the disposal of available for sale financial assets, value increase/
decrease recorded in “Marketable Securities Value Increase Fund” under equity is transferred to the income statement. Equity instruments classified
as available for sale are accounted at cost less impairment, if any.
As of December 31, 2009, the Group has TRY 80.335 Thousand of financial assets available for sale (December 31, 2008: TRY 131 Thousand).
Loans and Receivables:
Loans and receivables are recognized at amortized cost. Fees, transaction costs and other similar costs in connection with the guarantees of loans
and receivables are not considered as part of the transaction cost and recognized in the income statement.
Loans are transferred to the relevant accounts in cash amounts and income accruals are calculated by using the internal rate of return method and
the related income is recorded in the profit share income item. Foreign currency and foreign currency indexed loans are evaluated and evaluation
differences are accounted under “Foreign Exchange Gains” and/or “Foreign Exchange Losses” in the income statement.
The classification and provisioning of doubtful loans/receivables are appropriately accounted for in accordance with the prevailing regulations, and
specific provisions allocated are recognized in the income statement for the period. Collections made from such loans are recognized under the
“Non-performing loans” (including receivables from the doubtful receivables) account and “Profit share income received from Uncollectible Loans
and Other Receivables” account.
Released provisions are accounted as a cancellation of such provisions if realized in the current year, and the remaining amounts are recognized in
the account of collections from the prior year expenses.
In addition to specific loan loss provisions, within the framework of the regulation and principles referred to above; the Parent Bank records
general loan loss provisions for loans and other receivables. The Parent Bank calculated the general loan provision at 0,5% for cash loans and other
receivables, and 0,1% for non-cash loans until November 1, 2006. Subsequent to the change in the regulation on “Methods and Principles for the
181
Determination of Loans and Other Receivables to be Reserved for and Allocation of Reserves” published in the Official Gazette No: 26333 dated
November 1, 2006; The Parent Bank started to book general loan loss provision at 1% for cash loans and other receivables; and 0,2% for non-cash
loans on the increase in the cash and non-cash loan portfolio as compared to their October 31, 2006 balances whereas allocating 0,5% general
loan loss provision for cash loans and other receivables, and 0,1% for non-cash loans for the balances as of October 31, 2006. Together with the
change in the same regulation made on February 6, 2008, the Parent Bank started to book general loan loss provision at 2% for cash loans under
watch-list and 0,4% for non-cash loans under watch-list.
VIII.Explanations on Impairment of Financial Assets
At each balance sheet date, the Group evaluates the carrying amounts of its financial asset or a group of financial assets to determine whether
there is an objective indication that those assets have suffered an impairment loss. If such an indication exists, the Group determines the related
impairment.
A financial asset or a financial asset group incurs impairment loss only if there is an objective indicator related to the occurrence (loss/damage
event) of one or more than one event (or occurrence) subsequent to initial recognition of that asset; and such loss event causes an impairment
loss as a result of the effect on the reliable estimate of the expected future cash flows of the related financial asset and asset group. Any amounts
attributable to expected losses arising from any future events is not recognized under no circumstances.
Companies that are required to prepare separate financial statements under the statutory requirements in accordance with TAS 27 “Consolidated
and Separate Financial Statements” can represent their subsidiaries or associates either at cost or the requirements set out in IAS 39, “Financial
Instruments: Recognition and Measurement”. In this case, the Parent Bank prefers to use the first method and presents the subsidiaries, jointly
controlled entities and associates at cost less impairment loss, if any.
IX. Explanations on Offsetting Financial Assets and Liabilities
Financial assets and liabilities are offset when the Group has a legally enforceable right to set off, and when the Group has the intention
of collecting or paying the net amount of related assets and liabilities or when the Group has the right to offset the assets and liabilities
simultaneously.
X.Explanations on Sales and Repurchase Agreements and Lending of Securities
The Group does not have any sales and repurchase agreements or lending of securities.
XI. Explanations on Assets Held for Sale, Discontinued Operations and Liabilities Related to Those Assets
The principles on accounting, assessment and disposal of assets held for sale are determined based on the Communiqué of “Principles and
Procedures on Bank’s Disposal of Precious Metals and Assets Held for Sale” published on November 1, 2006 in the official Gazette numbered 26333.
Although the Parent Bank has assets held for sale in the balance sheet, due to the fact that the Parent Bank does not have a formal plan to dispose
of these assets in one year subsequent to their classification date, such assets are continued to be depreciated. For this reason, these assets are
classified as tangible assets instead of assets held for sale.
Assets held for sale are measured at the lower of the carrying amount of assets or the fair value less any cost incurred for disposal. Assets held
for sale are not amortized and presented in the financial statements separately. An asset is classified as held for sale, only when the sale is highly
probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale,
which should be expected to qualify for recognition as a completed sale. Highly saleable condition requires a plan by the management regarding
the sale of the asset to be disposed of (or else the group of assets), together with an active program for the determination of buyers as well as for
the completion of the plan. Also the asset (or else the group of assets) shall be actively marketed in conformity with its fair value. On the other
hand, the sale is expected to be recognized as a completed sale within one year after the classification date; and the necessary transactions and
procedures to complete the plan should demonstrate the fact that there is remote possibility of making any significant changes or cancellation of
the plan.
Various events and conditions may extend the completion period of the disposal more than a year. If such delay arises from any events and
conditions beyond the control of the entity and there is sufficient evidence that the entity has an ongoing disposal plan for these assets, such
assets (or else group of assets) are still classified as assets held for sale (or else group of assets).
As of December 31, 2009, assets held for sale amounts to TRY 9.196 Thousand (December 31, 2008: 24.100 Thousand).
182
A discontinued operation is a division of a bank that is either disposed of or held for sale. The results of discontinued operations are included in the
income statement separately. The Group does not have any discontinued operations.
XII.Explanations on Goodwill and Other Intangible Assets
Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group’s
interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognized at
the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment
losses. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the
synergies of the combination.
Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication
that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment
loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on
the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. On
disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on
disposal.
Intangible assets acquired prior to January 1, 2005 are accounted for at restated cost less accumulated depreciation and any impairment loss,
and the intangible assets acquired in subsequent periods are accounted for at acquisition cost less accumulated depreciation and any impairment
loss if any, for those acquired prior to January 1, 2005. Intangible assets are amortized by using the straight line method considering their useful
lives. Amortization method is reviewed at the end of each year periodically. Intangible assets mainly constitute of rights and amortized using the
straight line method in 5 years.
As of December 31, 2009, goodwill amounts to TRY 4.111 Thousand (December 31, 2008: 4.111 Thousand).
XIII.Explanations on Tangible Fixed Assets
Prior to January 1, 2005, tangible assets are accounted for at acquisition cost plus any other direct costs incurred to bring the asset for ready to
use. Tangible assets are remeasured at their acquisition cost less accumulated depreciation and impairment loss, if any.
Depreciation of assets held less than one year as of the balance sheet date is accounted for proportionately.
If the fair value of tangible assets exceeds their carrying value, impairment loss is allocated for exceeding amounts and these amounts are
recognized as impairment in the financial statements.
Gains or losses resulting from disposals of tangible assets are recognized in the income statement as the difference between the net proceeds and
net book value.
Maintenance costs of the tangible assets are recognized in the income statement as an expense.
There are no pledges, mortgages or other restrictions on tangible assets.
Tangible Asset
Safety Boxes
Office Equipment
Furniture and Fixtures
Vehicles
Leasehold Improvements
Buildings
Useful Life
5 years
5 years
5 years
5 years
5 years
50 years
183
XIV.Explanations on Leasing Transactions
Group as a Lessor:
Amounts due from lessees under finance leases are recorded as receivables at the amount of the Group’s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect
of the leases.
Group as a Lessee:
ssets held under finance leases are recognized as assets of the Group at their fair value at the inception of the lease or, if lower, at the present
A
value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged to profit or loss, unless they are directly attributable to qualifying assets, in which
case they are capitalized in accordance with the Group’s general policy on borrowing costs.
As of December 31, 2009, the Group, as a lessee, has operating leases for vehicles, general management and branches in addition to its assets
through financial lease.
XV.Explanations on Provisions and Contingent Liabilities
Provisions are recognized when there is a present obligation, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, a reliable estimate can be made of the amount of the obligation. Contingent liabilities are continuously reviewed
in order to determine whether there is any possibility of cash flow with regards to the sources having economic benefit.
XVI.Explanations on Liabilities for Employee Benefits
Under the Turkish law and union agreements, lump sum payments are made to employees retiring or involuntarily. The retirement pay provision
recognized represents the present value of the defined benefit obligation as adjusted for unrecognized gains and losses in accordance with TAS 19
“Employee Benefits”. The defined obligation is determined by independent actuaries.
XVII. Explanations on Taxation
Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax return. Therefore, provisions for taxes, as
reflected in the accompanying consolidated financial statements, have been calculated on a separate-entity basis.
Tax expense is comprised of current tax and deferred tax expenses.
Current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
According to the Article 32 of the Corporate Tax Law No: 5520, announced in the Official Gazette dated June 21, 2006, the corporate tax rate is
20%.
eferred tax asset or liability is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and
D
the corresponding tax bases used in the computation of taxable profit, and are accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be
utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in
a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
T he carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
184
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset
is realized and recognized in the income statement. If deferred tax is in connection with the assets directly associated with the equity, it shall be
directly associated with shareholders’ equity items.
Taxes payables and prepaid taxes are offset since they are levied by the same taxation authority. Deferred tax assets and liabilities are also offset.
The Group has adjusted its statutory financial statements based on inflation accounting as of January 1, 2004 in accordance with Law No: 5024.
T he revenue earned from real estate investment activities of the Group’s subsidiary (Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.) which has acquired
the status of the real estate investment trust, is exempt from Corporate Tax according to Article 5/(1) (d) (4) of the Corporate Tax Law No: 5520.
XVIII.Additional Disclosures on Borrowings
Borrowings are recognized in accordance with TAS 39 “Financial Instruments: Recognition and Measurement”.
No specific hedging technique is applied for borrowings, their accounting and valuation methods excluding some general methods applied for
avoiding any liquidity and currency risks.
There are no debt securities issued by the Group. There are no convertible bonds issued by the Group.
XIX.Explanations on Exported Share Certificates
As of December 31, 2009, there are no disclosures made on the profit sharing in connection with the Group’s shares subsequent to the balance
sheet date.
XX. Explanations on Acceptances
Acceptances are realized simultaneously with the payment dates of the customers and they are presented as probable commitments in the offbalance sheet accounts.
XXI. Explanations on Government Incentives
As of the balance sheet date, there are no government incentives used by the Group.
XXII.Explanations on Reporting According to Segmentation
The Parent Bank operates in corporate, commercial and retail banking areas in line with its mission by means of profit/loss sharing methodology.
Current Period Retail Corporate and Commercial Treasury Undistributed Elimination
Total
Total Assets
1.101.749 7.139.445 2.550.891 1.081.842 (135.375) 11.738.552
Total Liabilities
6.169.720 2.976.149 191.616 2.536.442 (135.375) 11.738.552
Net Profit Share Income/(Expense) (*)
(359.390)
913.163 49.559 19.215 -
622.547
Net Fees and Commissions Income/(Expense) (2.577)
253.953 (1.598)
(4.387)
-
245.391
Other Operating Income/(Expense)
(2.951)
(8.870)
-
(469.948)
- (481.769)
Profit Before Tax
(364.918)
1.158.246 47.961 (455.120)
-
386.169
Tax Provision
-
-
-
(78.351)
-
(78.351)
(364.918)
1.158.246 47.961 (533.471)
-
307.818
Minority Share
2.027
Group Share 305.791
(*) The allocation of retail, corporate and commercial banking segments of the Parent Bank above is the result of differentiation in fund collection
and allocation procedures of the participation banks.
185
Prior Period Retail Corporate and Commercial Treasury Undistributed Elimination
Total
Total Assets
927.150 5.421.457 1.174.410 716.562 (84.570) 8.155.009
Total Liabilities
3.812.233 2.038.306 457.632 1.931.408
(84.570) 8.155.009
Net Profit Share Income/(Expense) (*)
(253.302)
710.520 27.273 25.983 -
510.474
Net Fees and Commissions Income/(Expense) (9.757)
213.867 (1.262)
16.134 -
218.982
Other Operating Income/(Expense)
(5.370)
(10.803)
-
(405.681)
(4.989) (426.843)
Profit Before Tax
(268.429)
913.584 26.011 (363.564)
(4.989)
302.613
Tax Provision
-
-
-
(65.277)
-
(65.277)
(268.429)
913.584 26.011 (428.841)
(4.989)
237.336
Minority Share
(1.454)
Group Share 238.790
(*) The allocation of retail, corporate and commercial banking segments of the Parent Bank above is the result of differentiation in fund collection
and allocation procedures of the participation banks.
XXIII. Explanations on Other Matters
None.
186
SECTION FOUR
INFORMATION ON THE CONSOLIDATED FINANCIAL STRUCTURE
I.Explanations Related to the Consolidated Capital Adequacy Standard Ratio
The capital adequacy ratio of the Group based on the consolidated financial statements is 14,81% (December 31, 2008: 13,22%). Capital Adequacy
Standard Ratio is calculated in accordance with the Communiqué on “Measurement and Assessment of Capital Adequacy of Banks”, which was
published on November 1, 2006 in the Official Gazette numbered 26333. The calculation of Capital Adequacy Ratio includes the methods used in
determining the capital adequacy ratio, determination of risk weighted assets and non-cash loans in line with the relevant banking regulation and
measuring the market risk and operational risk ratio in line with the same regulation.
Risk WeightsRisk Weights
ConsolidatedParent Bank
Amount Subject to Credit Risk
0% 10%
Balance Sheet Items (Net)
2.601.205 Cash and Cash Equivalents
50%
100%
150% 200%
0% 10%
4.965.824 24.041 1.753 2.598.621
20%
50%
100% 150% 200%
- 246.686 1.966.051 4.900.362 24.041 1.753
131.919 -
-
-
-
-
-
131.917
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.008.055 -
-
-
-
-
- 2.008.055
-
-
-
-
-
-
Matured Marketable Securities
Due From Central Bank of Turkey
20%
- 272.834 1.966.051 Due From Domestic Banks, Foreign
Banks, Branches and Head Office Abroad
-
- 171.747 -
1.273 -
-
-
- 145.745
-
1.273
-
Interbank Money Market Placements
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Receivables From Reverse Repo Transactions
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
153.015
-
-
-
-
-
-
3.888.193 24.041 1.753 66.497
-
Reserve Deposits
Loans
153.015 66.497 Non-Performing Loans (Net)
Financial Lease Receivables
- 100.780 1.908.529 100.780 1.908.529 3.888.193 24.041 1.753
-
-
-
-
104.346 -
-
-
-
-
-
104.346
-
-
5.829 -
-
7.193 101.190 -
-
5.829
-
-
7.193
101.190
-
-
75.000 -
-
-
93 -
-
75.000
-
-
-
93
-
-
75.000 -
-
-
-
-
-
75.000
-
-
-
-
-
-
Receivables From Installment Sales of Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sundry Debtors
-
-
-
-
58.185 -
-
-
-
-
-
15.729
-
-
Accrued Profit Share and Income Accruals 11.521 -
307 50.329 280.440 -
-
11.521
-
161
50.329
280.441
-
-
Subsidiaries, Associates and Entities
Under Common Control (Net)
-
-
-
-
102.015 -
-
-
-
-
-
184.839
-
-
Tangible Assets
-
-
-
-
307.242 -
-
-
-
-
-
268.242
-
-
Other Assets
74.369 -
-
-
122.847 -
-
71.787
-
-
-
56.016
-
-
Off-Balance Sheet Items
57.675 - 72.110 789.564 4.033.835 -
-
57.675
-
72.110
789.564 4.033.835
-
-
Guarantees and Commitments
57.675 - 63.064 789.564 4.033.835 -
-
57.675
-
63.064
789.564 4.033.835
-
-
Derivative Financial Instruments -
-
9.046 -
-
-
-
-
-
9.046
-
-
-
-
Non Risk Weighted Accounts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Risk Weighted Assets 2.658.880 - 344.944 2.755.615 8.999.659 24.041 1.753 2.656.296
- 318.796 2.755.615 8.934.197 24.041 1.753
Summary of the capital adequacy standard ratio of the group:
Total Risk Weighted Assets (TRWA)
Amount Subject to Market Risk (ASMR)
Amount Subject to Operational Risk (ASOR) (*)
Shareholders’ Equity/(TRWA + ASMR + ASOR) *100 Consolidated
Current Period
Prior Period
10.486.023 9.773.141
58.325 93.888
1.345.149 963.074
1.760.645 1.431.953
14,81 13,22
Parent Bank
Current Period
Prior Period
10.415.331 9.776.820
21.175 65.750
1.228.699 859.883
1.685.734 1.434.570
14,45 13,40
(*) The amount subject to operational risk is in accordance with the “Regulation Regarding Measurement and Evaluation of the Bank’s Capital
Adequacy Ratio” published in the Official Gazette No: 26333 dated November 1, 2006 which is effective from June 1, 2007. Operational risk is
calculated by using the Basic Indicator Approach.
187
Consolidated components of shareholders’ equity:
CORE CAPITAL
Paid-in Capital
Nominal Capital
Capital Commitments (-)
Paid-in Capital Indexation Difference
Share Premium
Share Cancellations Profits
Legal Reserves
First Legal Reserve (Turkish Commercial Code 466/1)
Second Legal Reserve (Turkish Commercial Code 466/2)
Other Legal Reserve Per Special Legislation Status Reserves
Extraordinary Reserves Reserves Allocated by the General Assembly
Retained Earnings
Accumulated Losses
Foreign Currency Share Capital Exchange Difference
Inflationary Adjustment to Legal Reserve, Status Reserves and
Extraordinary Reserves Profit
Current Year Profit
Prior Years’ Profits
Provision for Possible Losses up to 25% of the Core Capital
Gains on Sale of Associates and Subsidiaries and Properties to be
Added to Capital
Primary Subordinated Loans up to 15% of the Core Capital
Minority Interest
Losses that cannot be Covered by Reserves (-)
Net Current Period Loss
Prior Years’ Losses
Leasehold Improvements (-) Prepaid Expenses (-) Intangible Assets (-) Deferred Tax Asset Exceeding 10% of the Core Capital (-)
Excess Amount in Clause 3, Article 56 of the Banking Law (-)
Consolidated Goodwill (Net) (-)
TOTAL CORE CAPITAL
Consolidated
Parent Bank
Current Period
Prior Period
900.000 900.000 900.000 900.000
900.000 900.000 900.000 900.000
-
-
-
-
-
-
3.307 3.307 3.307 3.307
-
-
-
38.378 26.053 37.886 25.561
36.451 24.126 35.959 23.634
1.927 1.927 1.927 1.927
-
-
-
-
-
-
453.231 224.020 458.224 224.020
453.231 224.020 458.224 224.020
-
-
-
-
-
-
-
-
-
-
305.791 305.791 -
-
-
240.119 238.790 1.329 -
-
301.281 301.281 -
-
246.529
246.529
-
4.275 -
105.491 13.978 -
13.978 50.688 21.108 10.253 -
-
4.111 1.710.335 4.275 -
17.626 -
-
-
-
18.210 6.336 -
-
4.111 1.386.743
4.275
-
-
-
-
-
50.616 8.840 10.224 -
-
-
1.635.293
4.275
8.131
6.332
1.389.229
188
SUPPLEMENTARY CAPITAL
Consolidated
Parent Bank
Current Period
Prior Period
General Loan Loss Reserves
49.393 45.493 49.393 45.493
45% of The Revaluation Reserve for Movable Fixed Assets
-
-
-
45% of The of Revaluation Reserve for Properties -
-
-
Bonus Shares Obtained From Associates, Subsidiaries and
Entities Under Common Control
-
-
-
Primary Subordinated Loans Excluded in the Calculation of the Core Capital -
-
-
Secondary Subordinated Loans -
-
-
45% of The Marketable Securities Value Increase Fund
1.314 -
1.314 Associates and Subsidiaries
-
-
-
Available for Sale Financial Assets
1.314 -
1.314 Indexation Differences for Capital Reserves, Profit Reserves and
Retained Earnings (Except Indexation Differences for Legal Reserves,
Statutory Reserves and Extraordinary Reserves)
-
-
-
Minority Interest
-
-
-
TOTAL SUPPLEMENTARY CAPITAL
50.707 45.493 50.707 45.493
TIER III CAPITAL
-
-
-
CAPITAL
1.761.042 1.432.236
1.686.000 1.434.722
DEDUCTIONS FROM THE CAPITAL 397 283
266 152
Equity Shares in Banks and Financial Institutions Acquired 10% or More of
Their Capital (Domestic, Foreign) that are Excluded from the Consolidation 165 215 34
84
Secondary Subordinated Loans and Primary or Secondary Subordinated
Debt Placements Granted to Banks and Financial Institutions
(Domestic, Foreign) or Qualified Shareholders
-
-
-
Shareholdings in the Banks and Financial Institutions which are
Accounted for Under the Equity Pick up Method but the Assets and
Liabilities are not Consolidated
-
- Loans Granted not in Compliance with Articles 50 and 51 of the Banking Law
-
-
-
Total Net Book Value of the Bank’s Real Estates in Excess of 50% of
the Equity and in accordance with Article 57 of The Act, Net Book Value
of Real Estates and Commodities Acquired in Exchange of Loans and
Receivables that should be Disposed of However; have not been Disposed
of Although It has been 5 Years since the Beginning of the Acquisition Date.
232 68 232
68
Other
-
-
-
TOTAL SHAREHOLDERS’ EQUITY
1.760.645 1.431.953 1.685.734
1.434.570
II. Explanations Related to Consolidated Credit Risk
Credit worthiness of loan customers are monitored and reviewed regularly by the Risk Monitoring Department of the Parent Bank in accordance
with the Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated by Banks and Procedures and Principles of
Allocating Provisions” . The account statements are obtained based on the prevailing regulations. Credit limits of the Parent Bank are determined by
the Board of Directors, the Credit Committee of the Parent Bank and the Credit Administration. The Parent Bank obtains sufficient guarantees for
its risks, comprising of personal surety, real-estate mortgage, cash blockage and customer cheques.
For the forward transactions and other similar positions of the Parent Bank, operational limits are set by the Board of Directors and the
transactions are performed within these limits.
There are no options or any other similar transactions.
Indemnified non-cash loans are subject to the same risk weight with the overdue loans.
The Parent Bank monitors restructured and rescheduled loans in accordance with the Communiqué on “Determining the Nature of Loan and
Other Receivable Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”. Financial position and business operation
of those customers are analyzed systematically and, principal and profit payments based on the restructured payment plan are monitored by the
corresponding departments.
189
As of December 31, 2009, the risk of the Parent Bank from its top 100 cash loan customers share in total cash loans and financial lease receivable
ratio is 46,57% (31 December 2008: 38,86%).
As of December 31, 2009, the risk of the Parent Bank from its top 100 non-cash loan customers share in total non-cash loan ratio is 46,62% (31
December 2008: 45,77%).
As of December 31, 2009, the cash and non-cash receivables of the Parent Bank from its top 100 loan customers share in total balance sheet assets
and non-cash loan ratio is 39,86% (31 December 2008: 32,05%).
As of December 31, 2009 the Parent Bank’s general provision amount for its credit risk is TRY 89.368 Thousand (31 December 2008: TRY 72.286
Thousand).
Distribution of credit risk by types of borrowers and geographical concentration:
Loans to Loans to Banks
Real Person
and Other
and Legal Entities
Financial Institution Marketable Securities (***)
Other Loans (**)
Current Prior
Current
Prior
Current
Prior
Current
Prior
Period
Period
Period
Period
Period
Period
Period
Period
Loans according to
Borrowers
7.962.432 6.018.660 100.324 744 179.475
43.904 12.260.238 12.865.747
Private Sector 6.854.661 5.083.992 163 744 22.680
43.904 10.562.645 11.811.395
Public Sector 12.051 7.521 -
-
156.571
-
-
Banks
-
-
100.161 -
-
- 1.572.945
924.791
Retail
1.095.720 927.147 -
-
-
-
124.648
129.561
Share Certificates
-
-
-
-
224
-
-
Information according to
Geographical Concentration 7.962.432 6.018.660 100.324 744 179.475
43.904 12.260.238 12.865.747
Domestic
7.720.332 5.959.245 163
744
175.493
13.869 10.692.378 11.798.954
105.111
7.709 100.161
-
3.982
15.818 1.434.787
937.908
OECD Countries (*)
5.117
-
-
-
-
-
40.976
4.747
112.451
174 -
-
-
-
13.265
USA, Canada
775
-
-
-
-
14.217
7.234
7.272
Other Countries
18.646
51.532 -
-
-
-
71.598
116.866
Total
7.962.432 6.018.660 100.324
744
179.475
43.904 12.260.238 12.865.747
(**) Includes non-cash loans, commitments and derivative transactions.
(***) Includes marketable securities designated at fair value through profit or loss, available-for-sale and held-to-maturity.
190
Geographical concentration:
Assets
Liabilities
Non-Cash Loans Equity Investments
Domestic
11.192.745 9.643.766 8.733.493 -
252.579 76.203 66.518 -
OECD Countries (*)
7.576 11.292 16.416 -
112.451 21.106 13.265 -
USA, Canada
51.233 46.964 7.234 -
Other Countries
19.919 139.805 49.051 -
Common Control
-
-
-
-
-
-
-
Total
11.636.503
9.939.136 8.885.977 102.049 Prior Period – December 31, 2008
Domestic
7.894.687 6.221.115 10.072.831 -
48.204 158.570 95.066 -
OECD Countries (*)
5.312 7.415 5.380 -
174 81.919 -
-
USA, Canada
35.591 65.780 7.273 -
Other Countries
52.092 204.810 34.865 -
Common Control
-
-
-
-
-
-
-
Total
8.036.060 6.739.609 10.215.415 118.949 Net Profit
305.791
305.791
238.790
238.790
(**) Assets and liabilities that cannot be allocated on a coherent basis.
Sector concentration for cash loans:
TRY
Agriculture
131.208
Farming and Raising Livestock
93.908
Forestry, Wood and Paper
31.023
Fishery
6.277
Manufacturing
3.265.977
Mining and Quarry
294.079
Production
2.439.245
Electricity, Gas and Water
532.653
Construction
1.475.039
Services
1.381.412
Wholesale and Retail Trade
406.557
Hotel, Tourism, Food and Beverage Services 172.054
Transportation and Communication
286.818
Financial Institutions
117.937
Real Estate and Renting Services
176.019
Self-Employment Services
16.294
Education Services
46.275
Health and Social Services
159.458
Other
1.176.839
Total
7.430.475
C
urrent Period
(%)
FC
(%)
TRY
1,76
12.782
2,02
86.254
1,26
10.245
1,62
58.439
0,42
-
-
17.726
0,08
2.537
0,40
10.089
43,96
246.420
38,97 2.609.840
3,96
67.589
10,69
136.267
32,83
126.293
19,97 2.089.322
7,17
52.538
8,31
384.251
19,85
114.173
18,06
877.605
18,60
258.906
40,95 1.185.464
5,47
63.542
10,05
300.063
2,32
-
-
208.005
3,86
172.354
27,26
263.816
1,59
-
-
45.842
2,37
-
-
179.849
0,22
4.306
0,68
15.331
0,62
18.704
2,96
45.985
2,15
-
-
126.573
15,83
-
-
989.571
100,00
632.281
100,00 5.748.734
The table below shows the maximum exposure to credit risk for the components of the financial statements.
Prior Period
(%)
FC
(%)
1,51
11.064
4,08
1,02
10.374
3,83
0,31
496
0,18
0,18
194
0,07
45,39 119.449 44,13
2,37
2.927
1,08
36,34
116.522
43,05
6,68
-
15,27
53.412 19,73
20,63
86.432 31,94
5,22
27.555
10,18
3,62
29.720
10,98
4,59
14.315
5,29
0,80
-
3,13
667
0,25
0,27
4.363
1,61
0,80
9.812
3,63
2,20
-
17,20
313
0,12
100,00 270.670 100,00
191
Current Period
2.213.091 Banks
173.166 Derivative Financial Assets Held for Trading
22.680 Available-for-Sale Financial Assets
80.335 Held to Maturity Investments
76.460 Loans
8.196.675 Finance Lease Receivables
158.671 Total
10.921.078 Contingent Liabilities
8.885.977
Commitments
2.473.285
Total
11.359.262
Total Credit Risk Exposure
1.062.597
141.879
43.904
131
6.147.566
233.676
7.629.753
10.215.415
1.815.602
12.031.017
19.660.770
Credit rating system:
The credit risk is assessed through the internal rating system of the Parent Bank, by classifying loans from highest grade to lowest grade according
to the probability of default. As of December 31, 2009 consumer loans are excluded from the internal rating system of the Parent Bank. Additional
scoring methodologies are applied for these loans. The risks that are subject to rating models can be allocated as follows:
Category
Description of Category
Above Average
The borrower has a very strong financial structure
Average
The borrower has an intermediate level of financial structure
Under Average
The financial structure of the borrower has to be closely monitored in the medium term
Not Graded
The borrower is not assessed by the Parent Bank
Total
Share in the Total (%)
30%
34%
7%
29%
100%
III. Explanations Related to the Consolidated Market Risk
The amount subject to market risk is calculated and reported with the Standard Method described in Section 4 of the Communiqué on
“Measurement and Assessment of Banks’ Capital Adequacy” published in the Official Gazette No: 26333 dated November 1, 2006. Market risk is
measured on a monthly basis.
a) Information related to market risk:
(I) Capital Requirement to be Employed for General Market Risk - Standard Method (II) Capital Requirement to be Employed for Specific Risk - Standard Method (III) Capital Requirement to be Employed for Currency Risk - Standard Method (IV) Capital Requirement to be Employed for Commodity Risk - Standard Method (V) Capital Requirement to be Employed for Settlement Risk - Standard Method (VI) Total Capital Requirement to be Employed for Market Risk Resulting From Options – Standard Method
(VII) Total Capital Requirement to be Employed for Market Risk in Banks Using Risk Measurement Model (VIII) Total Capital Requirement to be Employed for Market Risk (I+II+III+IV+V+VI) (IX) Amount Subject to Market Risk (12,5 x VIII) or (12,5 x VII)
Amount
1.766
752
2.148
4.666
58.325
192
b) Average market risk table calculated at the end of each month in the current period:
Interest Rate Risk (*)
Common Stock Risk
Currency Risk
Commodity Risk
Settlement Risk
Option Risk
Total Value Subject to Risk
Current Period
Average
Maximum
Minimum
Average
13.819
32.138
3.288
10.466 28.250
29.663
27.525
20.575 29.694
42.588
22.575
28.978 -
-
-
-
-
-
-
-
-
-
-
-
71.763
104.389
53.388
60.019 Prior Period
Maximum
23.900 21.563 49.175 -
-
-
94.638 Minimum
2.725
18.688
16.200
37.613
(*) The Parent Bank calculates by considering market risk of share certificates and forward transactions.
c) Other price risks:
The Group is exposed to stock price risk as a consequence of investing in publicly traded companies in İstanbul Stock Exchange.
As of reporting date, assuming that all other variables are fixed and 10% increase or decrease in valuation method parameters (stock prices) is
appeared, TRY 1.371 Thousand increase or decrease before tax is anticipated (December 31, 2008: TRY 1.109 Thousand).
IV.Explanations Related to Consolidated Operational Risk
The Group calculates the amount subject to operational risk based on “Basic Indicator Method” by using 2008, 2007 and 2006 year end gross
income balances of the Group, in accordance with the Section 4 of the “Regulation Regarding Measurement and Evaluation of Banks’ Capital
Adequacy Ratio” published in the Official Gazette No:26333 dated November 1, 2006, namely “The Calculation of the Amount Subject to
Operational Risk”.
V. Explanations Related to the Consolidated Currency Risk
Foreign currency risk indicates the probability of loss that banks are subject to due to the exchange rate changes in the market. While calculating
the share capital requirement, all foreign currency assets, liabilities and forward transactions of the Parent Bank are taken into consideration and
value at risk is calculated by using the standard method.
Net foreign currency position/capital ratio of the Parent Bank is also controlled using the same methods.
The Parent Bank does not use any derivative instruments for hedging.
T he Standard Method stated in the statutory reporting is used to measure the currency risk of the Parent Bank. The risk measurements are
performed on a monthly basis.
The announced current foreign exchange buying rates of the Parent Bank as of December 31, 2009 and the previous five working days are as
follows:
US Dollar
“FC Evaluation Rate”
1,5057 Previously;
30 December 2009 (Day 1)
1,5026 29 December 2009 (Day 2)
1,5065 28 December 2009 (Day 3)
1,5052 25 December 2009 (Day 4)
1,5070 24 December 2009 (Day 5)
1,5186 31 December 2009
Euro
Sterling 100 Japanese Yen
2,1590 2,4212 1,6247
2,1547 2,3851 1,6296
2,1682 2,4089 1,6423
2,1667 2,4014 1,6475
2,1635 2,3997 1,6399
2,1740 2,4199 1,6547
The simple arithmetic averages of the major current foreign exchange buying rates of the Parent Bank for the thirty days before December 31,
2009 are as follows; TRY 1,4983 per US Dollar, TRY 2,1855 per EURO, TRY 2,4296 per GBP and TRY 1,6628 per 100 JPY.
193
Information on the foreign currency risk of the group: Foreign currencies (Thousand TRY)
EUR
USD
YEN
Other
Current Period - December 31, 2009
Assets
Cash (Cash in Vault, Effectives, Money in Transit, Cheques Purchased)
and Balances with the Central Bank of Turkish Republic
286.246 1.041.455 -
37.912 Due from Banks 42.427 87.867 888 8.207 Financial Assets at Fair Value Through Profit and Loss (**)
-
-
-
-
-
-
-
-
-
-
-
-
Loans (*)
609.555 1.949.517 -
-
Subsidiaries, Associates and Entities Under Common Control
-
-
-
-
-
-
-
-
Derivative Financial Assets for Hedging Purposes
-
-
-
-
Tangible Assets
-
-
-
-
Intangible Assets
-
-
-
-
Other Assets
234 2.285 -
-
Total Assets
938.462 3.081.124 888 46.119 Liabilities
Current and Profit Sharing Accounts of Banks
607 1.128 -
8
Current and Profit Sharing Accounts 867.881 2.233.025 314 44.809 Money Market Borrowings
-
-
-
-
Funds Provided from Other Financial Institutions
58.389 133.072 -
-
-
-
-
-
Sundry Creditors
629 3.573 -
10 Derivative Financial Liabilities for Hedging Purposes
-
-
-
-
Other Liabilities (**)
8.299 9.347 5
58 Total Liabilities
935.805 2.380.145 319 44.885 Net Balance Sheet Position
2.657 700.979 569 1.234 Net Off-Balance Sheet Position
2.159 (689.605)
(579)
(60)
Financial Derivative Assets (***)
4.318 3.046 171 60 Financial Derivative Liabilities (***)
2.159 692.651 750 120 Non-Cash Loans (****)
1.450.841 3.320.841 37.080 92.697 Prior Period - December 31, 2008
Total Assets
774.953 2.293.106 3.888 55.175 Total Liabilities
717.631 1.935.748 4.090 52.105 Net Balance Sheet Position
57.322 357.358 (202)
3.070 Net Off-Balance Sheet Position
(44.791)
(353.249)
-
(30)
Financial Derivative Assets
-
2.141 -
-
Financial Derivative Liabilities 44.791 355.390 -
30 Non-Cash Loans (****)
1.735.286 3.668.940 76.844
133.538
Total
1.365.613
139.389
2.559.072
2.519
4.066.593
1.743
3.146.029
191.461
4.212
17.709
3.361.154
705.439
(688.085)
7.595
695.680
4.901.459
3.127.122
2.709.574
417.548
(398.070)
2.141
400.211
5.614.608
(*)TRY 1.892.285 Thousand of foreign currency indexed loan is also shown under this line (December 31, 2008: TRY 2.299.915 Thousand).
(**) In accordance with the principles of the Regulations on the “Measurement and Practices of Bank’s Net Overall FX position Shareholder’s Equity
Ratio on a consolidated and unconsolidated Basis”, general reserves recorded to expense accounts amounting to TRY 10.494 Thousand (December
31, 2008: TRY 10.011 Thousand) in assets and income accrual from derivative financial instruments amounting to TRY 3.889 Thousand (December
31, 2008: TRY 30.035 Thousand) in liabilities and expense accrual from derivate financial instruments amounting to TRY 155 Thousand (December
31, 2008:-), are not taken into consideration in the currency risk calculation.
(***) Forward asset purchase-sale commitments of TRY 7.595 Thousand is added to derivative financial assets and TRY 246.981 is added to
derivative financial liabilities (December 31, 2008: TRY 2.141 Thousand is added to derivative financial assets and TRY 3.675 is added to derivative
financial liabilities).
(****) The related balances do not have any effect on the currency risk position.
194
Foreign currency sensitivity:
The Group is mainly exposed to USD and EUR currency risks.
The following table details the Parent Bank’s sensitivity to a 10% increase and decrease in the TRY against USD and EUR. 10% is the sensitivity
rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the possible
change in foreign exchange rates. A positive number indicates an increase in profit or loss and other equity in the case of short position and a
decrease in the case of long position where the TRY strengthens against USD and EUR.
Change in Currency
Rate in %
Effect on Profit or Loss
Effect on Equity
Current Period
Prior Period
USD
10% increase
1.137
329
-
USD
10% decrease
(1.137)
(329)
-
EUR
10% increase
482
1.003
-
EUR
10% decrease
(482)
(1.003)
-
Forward foreign exchange contracts:
The following table details the forward foreign currency contracts outstanding as of the balance sheet date:
Purchase Contracts
Sales Contracts
Fair Value
Average Exchange Rate
Original Amount
Original Amount
TRY
Outstanding Contracts (*)
Current
Prior
Current
Prior Current
Prior
Current
Prior
Period
Period
Period
Period
Period Period
Period
Period
Swap Transactions
TRY Purchase-EUR Sale
Less than 3 Months
-
2,1863
-
43.725
- 20.000
-
347
Less than 3 Months
1,5142
1,7472
452.278 130.895 298.000 75.000
3.028
14.705
Between 3-6 Months
-
1,6516
- 256.598
- 155.000
-
14.190
Less than 3 Months
-
1,7440
-
6.976
-
4.000
-
793
Other Term Foreign Exchange Transactions (**)
Less than 3 Months
1,5013 1,5365 240.277 1.536 159.000 1.000 687 USD Purchase-EUR Sale
Less than 3 Months
1,4429 1,3954 1.443 1.395 1.000 1.000 14 EUR purchase-USD sale
Less than 3 months
1,4321 -
2.000 -
2.864 -
5
USD Purchase-JPY Sale
Less than 3 Months
92,369 -
500 -
46.184 -
-
JPY Purchase-USD Sale
Less than 3 Months
91,770 -
10.509 -
114 -
-
USD Purchase-DKK Sale
Less than 3 Months
5,1870 5,2583 80 20 415 105 -
DKK Purchase- USD Sale
Less than 3 Months
5,1840 -
207 -
40 -
-
(*) Maturity dates on the table are set based on the agreement period.
(**) It is presented in commitments within off balance sheet liabilities.
195
VI.Explanations Related to Consolidated Interest Rate Risk
As the Group has interest-free banking operations, it does not have any interest sensitive asset or liability and consequently, it does not have any
interest rate risk.
VII.Explanations Related to Consolidated Liquidity Risk
In order to avoid the liquidity risk, the Parent Bank diversifies its funding resources as customer deposits and foreign borrowings, considers the
maturity match between assets and liabilities, focuses on strategies especially for the provision of long-term resources and retains its liquid assets
in order to provide sufficient liquidity in any market fluctuations.
Maturity structure of the TRY and FC deposits, cost and change in the total amount are monitored on daily basis by considering the past
developments and future expectations.
The Parent Bank’s policy is to establish an asset structure that primarily meets all kinds of liabilities by using liquid resources. To do this, the Board
of Directors of the Bank determines a standard for the liquidity ratios, and applies the standard on a regular basis.
The table below gives a summary of the liquidity ratio of the Parent Bank.
Current Period
Average (%)
Highest (%)
Lowest (%)
First Term Period (Weekly)
192,55 233,06 161,13 Second Term Period (Monthly)
141,96
165,89
121,42
Prior Period
Average (%)
Highest (%)
Lowest (%)
First Term Period (Weekly)
161,97 218,26 130,34 Second Term Period (Monthly)
110,42
125,10
100,34
196
Presentation of assets and liabilities according to their maturities:
Current Period – Up to 1 3-12
Over
31 December 2009
Demand
Month 1-3 Months Months 1-5 Years
5 Years Undistributed (*)
Total
Assets
Cash (Cash in Vault, Effectives, Money in
Transit, Cheques Purchased) and Balances
with the Central Bank of Turkish Republic 1.042.465 1.302.545 -
-
-
-
- 2.345.010
Due from Banks 136.988 34.384 244 1.550 -
-
- 173.166
Financial Assets at Fair Value through
Profit and Loss
18.791 3.889 -
-
-
-
-
22.680
-
-
-
-
-
-
-
-
-
-
55.111 25.000 -
224 80.335
Loans (**)
-
1.605.399 1.239.467 2.700.780 2.533.253 142.528 - 8.221.427
Held-To-Maturity Investments
-
-
-
51.460 25.000 -
-
76.460
Other Assets
9.843 79.546 10.779 14.313 203 -
704.790 819.474
Total Assets
1.208.087 3.025.763 1.250.490 2.823.214 2.583.456 142.528 705.014 11.738.552
Liabilities
Current and Profit Sharing
Accounts of Banks
1.990 -
-
-
-
-
-
1.990
Other Current and Profit Sharing Accounts 1.589.973 3.585.760 1.539.921 2.367.578
12 -
- 9.083.244
Funds Provided from Other
Financial Instruments
-
15.195 29.217 80.081 64.556 2.412 - 191.461
Money Market Borrowings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sundry Creditors
32.471 169.086 1.123 728 167 -
640 204.215
Other Liabilities (***)
-
184.964 837 -
-
-
2.071.841 2.257.642
Total Liabilities
1.624.434 3.955.005 1.571.098 2.448.387
64.735 2.412 2.072.481 1
1.738.552
Net Liquidity Gap
(416.347)
(929.242) (320.608)
374.827 2.518.721 140.116 (1.367.467)
Prior Period – 31 December 2008
Total Assets
851.033 1.316.360 648.633 2.120.402 2.550.874 133.974 533.733 8.155.009
Total Liabilities
1.023.269 2.905.489 992.863 1.507.048 90.764 1.875 1.633.701 8.155.009
Net Liquidity Gap
(172.236)
(1.589.129) (344.230)
613.354 2.460.110 132.099 (1.099.968) -
(*) Certain assets in the balance sheet that are necessary for the banking operations but cannot be readily convertible into cash in the near future
such as tangible
assets, investments in associates and subsidiaries, stationary supplies, prepaid expenses and non-performing loans are included in this column.
(**) Loans include Finance Lease Receivables.
(***) Equity is presented in the “Undistributed” column under “Other Liabilities”.
197
Analysis of financial liabilities based on the remaining contractual maturities:
The table below is drawn up based on the undiscounted contractual maturities of the Group’s liabilities. Profit share expenses to be paid on such
liabilities are included in this table. “Adjustments” column indicates items that may lead to potential cash flows in the following period. These items
are included in maturity analysis, but not included in the balance sheet value of such financial liabilities.
Demand Up to 1Month 1-3 Months 3-12 Months
1-5 Years Over 5 Years Adjustments
Total
December 31, 2009
Funds Collected
1.591.963 3.585.760 1.539.921 2.367.578 12 -
- 9.085.234
Funds Borrowed
-
15.666 30.634 84.806 68.538 2.453 (10.636) 191.461
Total
1.591.963 3.601.426 1.570.555 2.452.384 68.550 2.453 (10.636) 9.276.695
December 31, 2008
Funds Collected
1.003.354 2.638.557 912.590 1.230.010 17.850 -
- 5.802.361
Funds Borrowed
-
30.940 80.657 285.514 64.188 1.983 (5.730) 457.552
Total 1.003.354 2.669.497 993.247 1.515.524 82.038 1.983 (5.730) 6.259.913
Analysis of contractual expiry by maturity of the Group’s derivative financial instruments:
Up to 1Month 1-3 Months 3-12 Months 1-5 Years Over 5 Years
December 31, 2009
Derivative Financial Instruments for
Hedging Purposes
Fair Value Hedge
-
-
-
-
-
-
-
-
-
-
448.699
-
-
-
-
Total
448.699
-
-
-
-
Up to 1 Month 1-3 Months 3-12 Months 1-5 Years Over 5 Years
December 31, 2008
Derivative Financial Instruments for
Hedging Purposes
Fair Value Hedge
-
-
-
-
-
-
6.049
-
-
-
-
156.080
234.407
-
-
Total
-
162.129
234.407
-
-
As the loan portfolio has fixed profit sharing rates, estimated fair value is calculated by using the discounted cash flows.
Total
448.699
448.699
Total
6.049
390.487
396.536
198
The table below summarizes the book value and fair value of the financial assets and liabilities. Book value is the sum of the acquisition value and
accumulated profit share accruals.
Financial Assets
Banks and Other Financial Institutions (*)
Financial Assets Available For Sale (**)
Loans (***) (*****)
Funds Collected from Banks (****)
Other current and profit sharing
accounts(****)
Funds Provided from Other Financial
Institutions
Issued Securities
Sundry Creditors
Book Value
Current Period
Prior Period
10.764.479 7.457.687 -
-
2.386.257 1.204.476
80.335 131 76.460 -
8.221.427 6.253.080 9.480.910 6.414.825 1.990 3.147 Fair Value
Current Period
Prior Period
11.421.402 7.771.913
-
2.386.257 1.204.476
80.335 131
80.111 8.874.699 6.567.306
9.480.248 6.413.131
1.990 3.147
9.083.244 5.799.214 9.083.244 5.799.214
191.461 -
-
204.215 457.552 -
6
154.906 190.799 -
-
204.215 455.858
6
154.906
(*) As receivables from banks and other financial institutions are in short-term nature, their fair value approximates to their book value.
(**) Amounting to TRY 224 Thousand of share certificates within financial asset available for sale is reflected to financial statements as cost by the
reason of not traded an active market.
(***) In order to calculate the fair value of loans, current profit sharing rates are used as of the balance sheet date. Loan balance also includes
finance lease receivables. Fair value of loans is calculated under the assumption that all installments are distributed equally.
(****) Book value of the funds collected approximates to their fair value as it is revalued with the year end unit value.
(*****) Net balance of follow up loans is not included.
199
The following table shows an analysis of financial instruments recorded at fair value, between those whose fair value is recorded on quoted market
prices, those involving valuation techniques where all model inputs are observable in the market and, those where the valuation techniques
involves the use of non observable inputs.
December 31, 2009
First Level TRY
Second Level TRY
Financial Assets
18.791
3.889
Financial Assets Available For Sale
-
80.111
Total
18.791
84.000
-
155
-
-
Total
-
155
Third Level TRY (*)
224
224
-
(*) Equity shares classified as available for sale assets amounting to TRY 224 Thousand which are not traded in an active market have been
accounted at cost and presented as 3rd level in this table.
December 31, 2008
First Level TRY
Second Level TRY
Financial Assets
13.869
30.035
-
-
Total
13.869
30.035
Financial Liabilities at Fair Value through Profit and Loss
-
-
-
-
Total
-
-
Third Level TRY
131
131
-
Beginning and ending term reconciliation of 3rd level valuated financial assets and liabilities follows at below:
Opening Balance
Total Loss/Income
Profit/Loss Reflected
Profit and Loss Accounted Under Equity
Purchases
Issued
Accrued
Transfers from 3rd Level to Other Level
Ending Balance
Financial Assets at Fair Value Financial Assets
Through Profit and Loss
Available for Sale
Held for Trading Derivative Financial Instruments Share Certificates
Total
-
-
131
131
-
-
-
-
-
-
-
-
-
-
-
93
93
-
-
-
-
-
-
-
-
-
-
-
224
224
IX. Fiduciary Operations and Transactions Made on Behalf of Others
The Group does not deal with fiduciary operations or transactions made on behalf of others.
200
SECTION FIVE
EXPLANATIONS AND DISCLOSURES ON THE CONSOLIDATED FINANCIAL STATEMENTS
I. Explanations and Disclosures Related to the Consolidated Assets
1.Information on Cash and Balances with the Central Bank of Turkish Republic
1.1. Information on Cash:
Cash/Foreign Currency
Other
Total
Current Period
TRY
FC
64.156 67.010 914.489 1.298.602 752 1
979.397 1.365.613 Prior Period
TRY
FC
38.947 27.395
647.130 415.467
622 10
686.699 442.872
Current Period
TRY
FC
914.489 1.097.509 -
-
-
-
-
201.093 914.489 1.298.602 Prior Period
TRY
FC
647.130 253.653
-
-
-
161.814
647.130 415.467
1.2. Information on the Central Bank of Turkish Republic Accounts:
Unrestricted Demand Deposit
Unrestricted Time Deposit
Restricted Time Deposit
Other (*)
Total
(*) Represents the reserve deposit held in the Central Bank of Turkish Republic in relation to foreign currency liabilities.
2.Information on Financial Assets at Fair Value Through Profit and Loss
2.1. Information on Financial Assets at Fair Value Through Profit and Loss Blocked/Given as Collateral or Subject to Repurchase
Agreements:
None.
2.2.Positive Differences Related to Derivative Financial Assets Held-for-Trading:
Forward Transactions Swap Transactions
Options
Other
Total
Current Period
TRY
FC
-
861
-
3.028
-
-
-
-
-
-
-
3.889
Prior Period
TRY
FC
-
793
-
29.242
-
-
-
-
30.035
201
3. Information on Banks
3.1. Information on Banks:
Banks Domestic
Foreign Branches and Head Office Abroad
Total
Current Period (*)
TRY
FC
33.777
139.389
33.777
41.874
-
97.515
-
-
33.777
139.389
Prior Period (*)
TRY
FC
33.471 108.408
33.471 56.485
-
51.923
-
33.471 108.408
(*) It also contains TRY 14.171 Thousand blocked currency (December 31, 2008: TRY 12.620 Thousand) which is deposited by Işık Sigorta included in
its accounts as elementary branches insurance warranty in favor of Turkish Treasury.
3.2. Information on Foreign Bank Accounts:
USA, Canada
OECD Countries (*)
Other
Total
Unrestricted Amount
Restricted Amount
Current Period
Prior Period
43.325 24.678 -
50.458 21.373 -
2.459 5.312 -
-
-
-
1.273 560 -
97.515 51.923 -
-
4.Information on Financial Assets Available-for-Sale
4.1. Information on Available-for-Sale Financial Assets Blocked/Given as Collateral or Subject to Repurchase Agreements:
None.
4.2. Information on Financial Assets Available-for-Sale:
Available for sale financial assets consist of 4,35% and TRY 131 Thousand of Tarsim Tarım Sigortaları Havuz İşletmesi A.Ş.’s shares, TRY 80.111
Thousand revenue share certificate and TRY 93 Thousand other share certificates as of December 31, 2009.
Debt Securities
Not Quoted
Share Certificates
Not Quoted
Total
Current Period
80.111
-
80.111
224
-
224
-
80.335
Prior Period
131
131
131
202
5. Information on Loans
5.1. Information on All Types of Loans or Advances Given to Shareholders and Employees of the Parent Bank:
Direct Loans Granted to Shareholders
Corporate Shareholders
Real Person Shareholders
Indirect Loans Granted to Shareholders
Loans Granted to Employees Total
Current Period Cash
Non-Cash
156.604 8.471 54.020 8.193 102.584 278 64.310 60.020 6.500 -
Cash
Non-Cash
30.901 3.847
17.944 3.529
12.957 318
57.919 55.142
5.642 94.462 58.989
5.2.Information on First and Second Group Loans and Other Receivables Including Restructured or Rescheduled Loans:
Standard Loans and
Other Receivables
Loans and Other Restructured or
Loans and Other
Restructured or
Receivables
Rescheduled Receivables
Rescheduled
Cash Loans
Discount Notes
-
-
-
Export Loans
660.502
80.418
2.142
393.637
Import Loans
48.449
-
-
Business Loans
5.060.081
-
126.122
9.648
Consumer Loans
454.788
711
12.596
8.822
Credit Cards
580.095
-
24.561
46.224
Investments on Profit/Loss Partnership
-
-
-
Precious Metal Loans -
-
-
Loans Given to Financial Sector
163
-
-
International Loans
257.795
-
14.682
69.784
Other
128.796
5.898
68.013
8.829
Other Receivables (*)
-
-
-
Total
7.190.669
87.027
248.116
536.944
(*) In addition to the balances mentioned in the table above, the Parent Bank has TRY 2.410 Thousand of leasing receivables followed under the
watch list (December 31, 2008: TRY 24.506 Thousand).
5.3.Loan Distribution Based by Maturity Structure:
Short-Term Loans and Other Receivables
Loans
Other Receivables
Medium-Term and Long-Term Loans
Loans
Other Receivables
Standard Loans and
Other Receivables
Loans and Other Restructured or
Receivables
Rescheduled 3.243.829 6.616 3.243.829 6.616 -
-
3.946.840 80.411 3.946.840 80.411 -
-
Loans and Other
Restructured or
Receivables
Rescheduled
133.152 55.634
133.152 55.634
-
114.964 481.310
114.964 481.310
-
-
203
5.4.Information on Consumer Loans, Retail Credit Cards, Loans Given to Personnel and Personnel Credit Cards:
Short Term
Medium-term and Long-Term
Consumer Loans-TRY
15.426
442.004
Housing Loans
8.809
405.565
Vehicle Loans
3.790
33.536
Consumer Loans
979
2.903
Other 1.848
-
Consumer Loans-FC Indexed
1.170
13.985
Housing Loans
1.170
12.517
Vehicle Loans
-
1.367
Consumer Loans
-
101
Other -
-
Consumer Loans-FC
-
-
Housing Loans
-
-
Vehicle Loans
-
-
Consumer Loans
-
-
Other -
-
Retail Credit Cards-TRY
607.968
8.667
With Installments
111.595
8.667
Without Installment
496.373
-
Retail Credit Cards-FC
-
-
With Installments
-
-
Without Installment
-
-
Personnel Loans-TRY
326
3.869
Housing Loans
21
1.632
Vehicle Loans
194
1.869
Consumer Loans
111
368
Other -
-
Personnel Loans-FC Indexed
5
132
Housing Loans
5
123
Vehicle Loans
-
-
Consumer Loans
-
9
Other -
-
Personnel Loans-FC
-
-
Housing Loans
-
-
Vehicle Loans
-
-
Consumer Loans
-
-
Other -
-
Personnel Credit Cards-TRY
2.120
48
With Installments
1.058
48
Without Installment
1.062
-
Personnel Credit Cards-FC
-
-
With Installments
-
-
Without Installment
-
-
Overdraft Account-TRY (Real Person) -
-
Overdraft Account-FC (Real Person)
-
-
Total
627.015
468.705
Total
457.430
414.374
37.326
3.882
1.848
15.155
13.687
1.367
101
616.635
120.262
496.373
4.195
1.653
2.063
479
137
128
9
2.168
1.106
1.062
1.095.720
204
5.5.Information on Installment Basis Commercial Loans and Corporate Credit Cards:
Installment Commercial Loans-TRY
Business Loans
Vehicle Loans
Other
Installment Commercial LoansFC Indexed
Business Loans
Vehicle Loans
Other
Installment Commercial Loans-FC
Business Loans
Vehicle Loans
Other
Corporate Credit Cards-TRY
With Installments
Without Installment
Corporate Credit Cards-FC
With Installments
Without Installment
Overdraft Account-TRY (Legal Entity)
Overdraft Account-FC (Legal Entity)
Total
Short Term
54.949 18 346 -
54.585 Medium and Long Term
6.221 2.065 4.156 -
-
Total
61.170
2.083
4.502
54.585
-
-
-
-
-
-
-
-
-
-
32.007 2.591 29.416 -
-
-
-
-
86.956 -
-
-
-
-
-
-
-
-
-
70 70 -
-
-
-
-
-
6.291 32.077
2.661
29.416
93.247
5.6. Loan Distribution according to Borrowers:
Public
Private
Total
Current Period
12.051
8.050.705
8.062.756
Prior Period
7.521
6.011.883
6.019.404
Current Period
7.720.495
342.261
8.062.756
Prior Period
5.959.989
59.415
6.019.404
Current Period
52.357
-
52.357
Prior Period
63.823
63.823
5.7. Domestic and Foreign Loans:
Domestic Loans
Foreign Loans
Total 5.8. Loans Granted to Subsidiaries and Associates:
Loans Granted to Subsidiaries and Associates Directly
Loans Granted to Subsidiaries and Associates Indirectly Total Bank Asya Annual Report 2009
205
5.9. Specific Provisions Provided Against Loans:
Loans and Receivables with Limited Collectibility
Loans and Receivables with Doubtful Collectability
Uncollectible Loans and Receivables
Total
Current Period
21.500
70.985
229.806
322.291
Prior Period
25.294
51.994
119.298
196.586
5.10. Information on Non-Performing Loans (Net):
5.10.1. Information on Loans and Other Receivables Included in the Non-Performing Loans which Restructured or Rescheduled:
Group III
Group IV
Loans and Receivables with
Limited Collectibility
Doubtful Collectability
Current Period
2.083
6.931
1.509
4.105
Rescheduled Loans and Other Receivables 574
2.826
Prior Period
1.008 5.358 Restructured Loans and Other Receivables
-
-
Rescheduled Loans and Other Receivables 1.008 5.358 Group V
Uncollectible Loans
and Receivables
9.192
8.386
806
15.924
15.924
5.10.2. Information on Movement of Non-Performing Loans:
Ending Balance of Prior Period
Additions in the Current Period (+)
Inflows from Other Overdue Loans Account (+)
Outflows to Other Overdue Loans Account (-)
Collections in the Current Period (-)
Write offs (-)
Corporate and Commercial Loans
Retail Loans
Credit Cards
Other
Ending Balance of the Current Period
Group III
52.038 330.612 -
(206.399)
(133.597)
-
-
-
-
-
42.654 (21.500)
21.154 Group IV
113.005 122.395 206.399 (152.662)
(161.686)
(1.827)
(76)
(79)
(1.012)
(660)
125.624 (70.985)
54.639 Group V
Uncollectible Loans
and Receivables
159.705
91.583
152.662
(69.510)
(46.508)
(31.232)
(2.209)
(12.667)
(400)
287.932
(229.806)
58.126
206
5.10.3.Information on Foreign Currency Non-Performing Loans and Other Receivables:
Group III
Group IV
Current Period
Ending Balance -
260
-
(130)
-
130
Prior Period Ending Balance 66 -
(13) -
53 -
Group V
Uncollectible Loans
and Receivables
1.590
(1.078)
512
1.887
(621)
1.266
5.10.4.Gross and Net Amounts of Non-Performing Loans with Respect to User Groups:
Group III
Group IV
Current Period (Net)
Loans to Real Person and Legal Entities (Gross)
42.654
125.624
(21.500)
(70.985)
Loans to Real Person and Legal Entities (Net)
21.154
54.639
Banks (Gross)
-
-
-
-
Banks (Net)
-
-
-
-
-
-
-
-
Prior Period (Net)
Loans to Real Person and Legal Entities (Gross)
52.038
113.005
(25.294)
(51.994)
Loans to Real Person and Legal Entities (Net)
26.744
61.011
Banks (Gross)
-
-
-
-
Banks (Net)
-
-
-
-
-
-
-
-
Group V
Uncollectible Loans
and Receivables
287.932
(229.806)
58.126
159.705
(119.298)
40.407
-
5.10.5.Non-Performing Loans and Main Guidelines of Liquidation Process for Loans and Receivables:
If the Parent Bank has collateral components stated in Article 9 of the Communiqué on “Determining the Nature of Loan and Other Receivable
Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”, such components are immediately liquidated by applying
managerial or legal procedures. In the absence of collateral component, even if there is an indication of insolvency, the Parent Bank reviews the
financial intelligence of the debtor systematically to determine subsequently acquired property holdings and applies the legal procedures.
Prior and subsequent to the legal procedures, as a result of reviews performed regarding the financial information provided, the Parent Bank
intends to liquidate its loans and other receivables from the companies that have potential development in the production and consequent
contribution to the economy by means of the rescheduled agreements.
207
5.10.6.Explanations on Write–off Policy:
Provision allocations arising from during or after the transfer of any loan receivables to “Non-performing loans” are performed by the Parent
Bank’s Loan Monitoring Department within the framework of the Banking Regulations and Supervisory Agency. Additionally, loans are written-off
against the assets, at least once a year, by the Credit Monitoring Agency to the extent that at least one of the following below is met and provision
is fully made for all non-performing loans in accordance with the decision made by the Board of Directors:
- Receivables are classified as unrecoverable;
- If receivables are classified as unrecoverable, specific documents should be obtained from the Collections Agency; or
- The Law Department remarks that there are still uncollectible receivables although the execution proceedings are in progress.
5.10.7.Other Explanations and Disclosures:
The information related to loan quality is stated as below:
Current Period – December 31, 2009 Neither past due nor Impaired Past due, not Impaired Past due, Impaired (**)
Total
Loans (*)
Corporate and Commercial Lending 4.534.779 437.711 143.198 5.115.688
Small Business Lending 1.707.323 255.146 203.869 2.166.338
Consumer Lending
455.499 21.418 10.129 487.046
Credit Cards
580.095 70.785 99.014 749.894
Total
7.277.696 785.060 456.210 8.518.966
(*) The Parent Bank classifies small medium entities (“SME”) considering the criteria set out in the Council of Ministers’ decision dated November
18, 2005 and numbered 25997 published in the Official Gazette and the Communiqué on “Descriptions, Nature and Classification of Small Medium
Entities”.
Neither past due norImpaired Past due, not Impaired Past due, Impaired (**)
Total
Loans (*)
Corporate and Commercial Lending 2.992.641 379.956 128.952 3.501.549
Small Business Lending 1.427.311 254.269 137.985 1.819.565
Consumer Lending
376.405 22.082 10.539 409.026
Credit Cards
520.093 46.647 47.272 614.012
Total
5.316.450 702.954 324.748 6.344.152
(*) The Parent Bank classifies small medium entities (“SME”) considering the criteria set out in the Council of Ministers’ decision dated November
18, 2005 and numbered 25997 published in the Official Gazette and the Communiqué on “Descriptions, Nature and Classification of Small Medium
Entities”.
The details of loan guarantees and leasing portfolio of the Parent Bank are stated as below:
Current Period (*) (**) (***)
Total
Residential, Commercial or Industrial Property 2.160.280 305.954 9.223 32.371 69.270 2.577.098
Financial Assets
301.626 90.609 -
-
- 392.235
Other
649.005 202.145 534 3.494 48.104 903.282
Total
3.110.911 598.708 9.757 35.865 117.374 3.872.615
208
Prior Period (*) (**) (***)
Total
Residential, Commercial or Industrial Property 1.799.114 319.446 15.561 29.158 50.276 2.213.555
Financial Assets
172.753 58.461 -
121 - 231.335
Other
390.233 69.386
1.525 2.243 43.774 507.161
Total 2.362.100 447.293 17.086 31.522 94.050 2.952.051
Aging analysis of past due but not impaired loans per classes of financial statements is stated as below:
31-60 Days
Loans
Corporate Lending
386.028 31.935 19.748 -
SME Lending 200.919 33.840 20.387 -
Consumer Lending
6.031 11.653 3.734 -
Credit Cards
51.194 14.666 4.925 -
Leasing Receivables
1.092 13 1.305 -
Total
645.264 92.107 50.099 -
Total
437.711
255.146
21.418
70.785
2.410
787.470
(*)The Parent Bank follows up the entire loan balance having less than 30 days overdue in the watch list based on precautionary principal and TRY
558.567 Thousand of such amount does not have payment overdue as of December 31, 2009 (Finance Lease TRY 1.082 Thousand).
31-60 Days
Loans
Corporate Lending
299.597 48.323 32.036 -
SME Lending 109.993 101.227 43.049 -
Consumer Lending
347 15.638 6.097 -
Credit Cards
29.782 16.865 -
-
Leasing Receivables
5.006 6.616 12.884 -
Total
444.725 188.669 94.066 -
Total
379.956
254.269
22.082
46.647
24.506
727.460
(*)The Parent Bank follows up the entire loan balance having less than 30 days overdue in the watch list based on precautionary principal and TRY
232.698 Thousand of such amount does not have payment overdue as of December 31, 2008 (Finance Lease TRY 3.767 Thousand).
6.Information on Held-to-Maturity Investments (Net)
6.1. Information on Available-for-Sale Financial Assets Blocked/Given as Collateral or Subject to Repurchase Agreements:
None.
209
6.2. Information on Government Bonds Classified as Held to Maturity Investments:
The Group has TRY 76.460 Thousand of revenue sharing certificate as of December 31, 2009.
Share Certificates
Bonds, Treasury Bill and Similar Securities
Other
Total
Current Period
TRY
FC
-
-
-
-
76.460
-
76.460
-
Prior Period
TRY
FC
-
-
-
-
-
Current Period
TRY
FC
-
-
-
-
76.460
-
-
-
76.460
-
Prior Period
TRY
FC
-
-
-
-
-
-
Current Period
-
-
75.000
-
-
1.460
76.460
Prior Period
-
6.3. Information on Investments Held-to-Maturity:
Debt Securities
Not Quoted
Total
6.4. Movement of Held-to-Maturity Investments:
Beginning Balance
Foreign Currency Differences on Monetary Assets
Purchases During Year
Disposals Through Sales and Redemptions
Valuation Effects
Closing Balance
7. Information on Associates
7.1. Information on Associates:
(1)
(2)
(3)
Company Name
Yeni Mağazacılık A.Ş. (*)
Landmark Holding A.Ş. (*)
Kredi Garanti Fonu A.Ş. (**)
İstanbul/Turkey
İstanbul/Turkey
Ankara/Turkey
Bank’s share percentage,
if different-voting percentage (%)
21,84%
21,84%
1,67 % Bank’s risk group share
percentage (%)
21,84%
21,84%
1,67%
(*) The Parent Bank participated in Yeni Mağazacılık A.Ş. and in Landmark Holding A.Ş. with the Financing Method for Participation Banks explained
in the regulation No:19 regarding “Banks’ Lending Transactions” published and became effective in the Official Gazette numbered 26333, dated
November 1, 2006 by means of joint investment method. These are recorded as associates in accordance with the Uniform Chart of Accounts
published in the Official Gazette numbered 26415 and dated January 26, 2007.
(**) In the Board of Directors meeting on June 25, 2009, the Parent Bank has decided to participate in Kredi Garanti Fonu A.Ş. with the amount of
up to TRY 4.000 Thousand. Upon this decision related to the capital increase of Kredi Garanti Fonu A.Ş. on September 11, 2009, the Parent Bank
paid TRY 2.000 Thousand of its TRY 4.000 Thousand capital commitment on October 15, 2009.
210
7.2. Information on Associates:
(*) Total Assets
Equity
(1)
96.607 (26.667)
(2)
45.017 44.866 Total Fixed Assets
29.432 24 Profit Income from
Share Marketable Income
Securities Portfolio -
-
25 -
Current Period
Profit/Loss (89.975)
(931)
Prior Period
Profit/Loss
(55.237)
(389)
Fair Value
(**) 175.227
(***) 56.966
(*) Financial information is provided from the associates’ unaudited financial statements as of December 31, 2009.
(**) It is expertise value of the Parent Bank’s associate, Yeni Mağazacılık A.Ş., as of February 4, 2010.
(***) It is expertise value of the Parent Bank’s associate, Landmark Holding A.Ş., as of February 9, 2010.
7.3. Movement of Associates:
Movements in Period Purchases
Sales
Capital Commitments (*)
Current Period
23.975 21.088 21.088 -
-
-
-
-
45.063 2.000 %1,67-%21,84 Prior Period
23.975
23.975
23.975
%25
(*) It is consists of capital commitment amounts of TRY 2.000 Thousand form the Parent Bank’s subsidiary, Kredi Garanti Fonu A.Ş..
7.4. Sectoral Information on the Financial Associates and the Related Carrying Amounts:
Banks
Insurance Companies
Factoring Companies
Leasing Companies
Finance Companies
Other Subsidiaries
Current Period
-
-
-
-
-
45.063
Prior Period
23.975
8. Information on Subsidiaries (Net)
8.1.Information on Unconsolidated Subsidiaries:
(1)
(2)
(3)
Company Name
Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti.
Nil Yönetim Hizmetleri Tur. San. ve Tic. A.Ş. (*)
Asyakart Teknoloji Hizmetleri A.Ş.
Bank’s share percentage, Bank’s risk group share
Address (City/Country) if different-voting percentage (%)
percentage (%)
İstanbul/Turkey
95,00%
95,00%
Istanbul/Turkey
99,93%
99,93%
Istanbul/Turkey
99,50%
99,50%
(*) Affiliate of the Parent Bank “Asyafin İnş. San. A.Ş.” renamed as “Nil Yönetim Hizmetleri Tur. San. ve Tic. A.Ş.” on September 30, 2009.
211
8.2. Information on Unconsolidated Subsidiaries:
(1)
(2)
(3)
(*) Total Assets
Equity
203 202 65.687 63.445 23 20 Total Fixed Assets
-
176 -
Profit Income from
Securities Portfolio 21 -
20 -
-
-
Current Period
Profit/Loss 11 118 (13)
Prior Period
Profit/Loss
9
(145)
(13)
Fair Value
-
(*) Financial information is provided from the unaudited financial statements of subsidiaries.
8.3. Information on Consolidated Subsidiaries:
Movements in Period Purchases (*)
Sales
Provision for Impairment Addition/(Reversal) Balance at the End of the Period
Capital Commitments
Current Period
43.251
39.573
39.573
-
-
-
-
-
82.824
5.153
22,94% - 65,42%
Prior Period
35.967
7.284
2.290
3.925
1.069
43.251
6.869
65,42%
(*) The amount of TRY 37.857 Thousand in the purchases row consists of the impact of change in consolidation scope as a result of inclusion of
Tuna Gayrimenkul Yatırım Ortaklığı A.Ş..
8.4.Sectoral Information on the Consolidated Financial Subsidiaries and the Related Carrying Amounts:
Subsidiaries
Banks
Insurance Companies
Factoring Companies
Leasing Companies
Finance Companies
Other Subsidiaries
Current Period
-
44.967
-
-
-
37.857
Prior Period
43.251
-
8.5.Subsidiaries Quoted on the Stock Exchange:
None.
8.6.Other Information on Consolidated Subsidiaries:
Company Title
(1) Işık Sigorta A.Ş.
Küçüksu Cad. Akçakoca Sok.
No: 6 34768 Ümraniye/İstanbul
(2) Tuna Gayrimenkul Küçüksu Cad. Akçakoca Sok.
Yatırım Ortaklığı A.Ş. (*)
No: 6 34768 Ümraniye/İstanbul
Main Partnership
Bank’s Share-If Different Voting Percentage (%)
Share of Other
Partners (%)
Consolidation
Method
65,42%
34,58%
Fully Consolidated
22,94%
77,06%
Fully Consolidated
(*) The company has been considered as subsidiary due to the Parent Bank’s control power over the company.
212
(1)
(2)
Total Assets
Equity
154.535
60.514
110.437
109.721
Total Fixed Assets
1.099
-
Profit Income from
Securities Portfolio 8.596
13.313
845
-
Current Period
Profit/Loss 7.086
(549)
Prior Period
Profit/Loss
(3.369)
(1.396)
Fair Value
(*) 190.616
(**) 192.051
(*) It is the expertise value of the Parent Bank’s associate, Işık Sigorta A.Ş. as of February 4, 2010.
(**) Based on the appraisal report of the facility dated 26 January 2010, the fair value of buildings and land is TRY 192.051 Thousand including VAT.
9.Information on Entities under Common Control
None.
10. Information on Finance Lease Receivables (Net)
10.1. Presentation of Remaining Maturities of Net Finance Leases Method:
Less than 1 Year
1 to 4 Years
More than 4 Years
Total
Current Period
Gross
Net
5.100 4.479 158.531 139.212 17.059 14.980 180.690 158.671 Prior Period
Gross
Net
19.867 17.532
238.083 210.106
6.841 6.038
264.791 233.676
Current Period
180.690
(22.019)
-
158.671
Prior Period
264.791
(31.115)
233.676
10.2. Information on Net Investments in Finance Leases:
Gross Receivable from Finance Leases
Unearned Finance Lease Income (-)
Cancelled Amounts (-) Net Receivable from Finance Leases
11.Derivative Financial Assets for Hedging Purposes
None.
213
12. Information on Tangible Assets
Leased Assets Held
Other
Buildings Tangible Assets Vehicles
for Resale Tangible Assets (*)
Cost
11.553 39.966 1.834 110.843 131.672 Additions -
-
322 75.412 43.229 Disposals
-
(1.009)
(396)
(6.901)
(7.338)
Transfers (**)
-
-
-
10.400 -
559 -
-
(2.890)
-
12.112 38.957 1.760 186.864 167.563 Accumulated Depreciation (-)
1.795 14.583 674 1.533 49.790 Depreciation Expense
308 7.942 326 2.965 24.652 Accumulated Depreciation of Tangible
(872)
(155)
(372)
(6.931)
Transfers
-
-
-
64 -
24 -
-
(63)
-
2.127 21.653 845 4.127 67.511 Net Book Value - December 31, 2008
9.758 25.383 1.160 109.310 81.882 Net Book Value - December 31, 2009
9.985 17.304 915 182.737 100.052 Total
295.868
118.963
(15.644)
10.400
(2.331)
407.256
68.375
36.193
(8.330)
64
(39)
96.263
227.493
310.993
(**)TRY 23.037 Thousand of the balance is transferred from assets held for sale to tangible fixed assets, TRY 12.701 Thousand of real estate’s to be
214
Leased Assets Held
Other
Buildings Tangible Assets Vehicles
for Resale Tangible Assets (*)
Cost
10.187 36.439 1.270 25.924 81.934 Additions -
3.527 691 87.397 52.319 Disposals
-
-
(127)
(731)
(2.581)
Transfers (**)
1.855 -
-
(818)
-
Impairment Losses
(489)
-
-
(929)
-
11.553 39.966 1.834 110.843 131.672 Accumulated Depreciation (-)
1.559 6.649 455 363 34.789 Depreciation Expense
310 7.934 277 1.541 17.218 Accumulated Depreciation of Tangible
-
(58)
(35)
(2.217)
Transfers
5
-
-
(5)
-
Impairment Losses
(79)
-
-
(331)
-
9.758 25.383 1.160 109.310 81.882 Total
155.754
143.934
(3.439)
1.037
(1.418)
295.868
43.815
27.280
(2.310)
(410)
68.375
111.939
227.493
(**)TRY 1.037 Thousand of the balance is transferred from assets held for sale to tangible fixed assets, TRY 1.855 Thousand of real estate’s to be
13. Information on Intangible Assets
13.1.Opening and Ending Book Values and Accumulated Depreciation Balances:
Book Value
Accumulated Depreciation
Net Book Value
Current Period
17.490 (7.237)
10.253 Prior Period
11.177
(4.841)
6.336
215
13.2. Intangible Assets Movement Table:
Rights
Other Intangible Assets
Cost
5
11.172
Effect of Change at Consolidation Scope (*)
138
190
Additions
-
6.102
Disposals
-
(117)
143
17.347
1
4.840
115
181
16
2.201
Disposals
-
(117)
132
7.105
4
6.332
11
10.242
Total
11.177
328
6.102
(117)
17.490
4.841
296
2.217
(117)
7.237
6.336
10.253
(*) Express the impact of change in consolidation scope as a result of inclusion of Tuna Gayrimenkul Yatırım Ortaklığı A.Ş..
Cost
Additions
Disposals
Other Intangible Assets
7.870
3.307
11.177
Disposals
3.270
1.571
4.841
4.600
6.336
13.3. Information on Goodwill:
Consolidation Goodwill
From Tangible Fixed Assets
From Intangible Fixed Assets
From Non-Monetary Assets
Goodwill From Mergers and Turnovers
From Tangible Fixed Assets
From Intangible Fixed Assets
From Non-Monetary Assets
Current Period
4.111
-
-
4.111
-
-
-
-
Prior Period
4.111
4.111
-
216
14.Explanations on Investment Properties
Leased Other
Buildings
Lands
Tangible Assets Tangible Assets
Cost
1.193 -
-
-
Effect of Change at Consolidation Scope(*)
32.365 4.898
2.255 11.613 Additions 276 50
-
482 Disposals
(55)
-
(116)
(498)
33.779 4.948 2.139 11.597 Accumulated Depreciation (-)
230 -
-
-
1.879 -
2.191 8.915 Depreciation Expense
678 -
6
1.040 Accumulated Depreciation of Tangible Assets Held for Resale (1)
-
(58)
(390)
2.786 -
2.139 9.565 Net Book Value - December 31, 2008
963 -
-
-
30.993 4.948
-
2.032 Total
1.193
51.131
808
(669)
52.463
230
12.985
1.724
(449)
14.490
963
37.973
(*) Express the impact of change in consolidation scope as a result of inclusion of Tuna Gayrimenkul Yatırım Ortaklığı A.Ş..
A subsidiary of the Parent Bank Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. has rented the facility in Kızılcahaman with all its tangible assets to Nil A.Ş..
Buildings
Cost
1.129 Additions -
Disposals
-
Revaluation Increases
85
(21)
1.193 Accumulated Depreciation(-)
197
32
Accumulated Depreciation of Tangible Assets Held for Resale -
1
230
932 Net Book Value - December 31, 2008
963 Total
1.129
85
(21)
1.193
197
32
1
230
932
963
217
15. Explanations on Deferred Tax Asset
As of December 31, 2009, deferred tax asset is calculated according to the temporary differences, except for general loan loss provision and
provision for possible risks, is TRY 5.946 Thousand and is accounted in the deferred tax asset account (December 31, 2008: TRY 1.182 Thousand
deferred tax asset; TRY 1.250 Thousand deferred tax liability from the Parent Bank and TRY 2.432 Thousand deferred tax asset from the Subsidiary
accounted in gross terms at the financial statements).
Current Period
8.211
1.642
Short-Term Employee Benefits 9.096
1.819
Credit Card Promotion Provision
4.909
982
(35.741)
(7.148)
Impairment Loss on Fixed Assets to be Disposed
12.508
2.502
Impairment Loss on Investment Properties
605
121
2.124
425
(3.734)
(747)
Impairment Loss on Buildings 3.260
652
Impairment Loss on Assets Held for Sale
11
2
Insurance Technical Reserves
584
117
Income Accruals
388
78
26.379
5.276
(4.368)
(873)
Carry Forward Tax Losses
4.156
831
Other
1.344
267
29.732
5.946
Impairment Loss on Fixed Assets to be Disposed
Impairment Loss on Investment Properties
Impairment Loss on Buildings Impairment Loss on Assets Held for Sale
Income Accrual
Other
Current Period
7.360 1.472
7.582 1.516
5.673 1.135
(31.564)
(6.313)
8.675 1.735
605
121
4.743 949
(30.035)
(6.007)
3.795 759
1.006 201
53 11
256 51
10.771 2.154
16.991 3.398
5.911 1.182
Movement of the deferred tax asset as of December 31, 2009 and December 31, 2008 is summarized below:
Deferred Tax Asset, January 1
Deferred Tax Accounted for Under Equity
Benefit/(Charge) for Current Period Deferred Tax Asset/Liability
Current Period
1.182
(730)
5.494
5.946
Prior Period
1.247
(65)
1.182
218
16. Explanations on Assets Held for Sale
Assets held for sale consist of tangible assets which are obtained from non-performing loans and they are recognized as required in accordance
with the prevailing Communiqué of “Principles and Procedures on Bank’s Disposal of Precious Metals and Assets Held for Sale” published on
November 1, 2006 in the official Gazette numbered 26333 in the consolidated financial statements.
As of the balance sheet date, assets held for sale of the Group amount to TRY 9.196 Thousand (December 31, 2008: TRY 24.100 Thousand).
Opening Balance- January 1
Additions
Disposals
Transfers (Net) (*)
Impairment Ending Balance
Current Period
24.100 460 (5.017)
(10.336)
(11)
9.196 Prior Period
1.037
25.106
(1.037)
(1.006)
24.100
(*) TRY 23.037 Thousand of the balance is transferred from assets held for sale to tangible fixed assets, TRY 12.701 Thousand of real estates to be
17. Information on Other Assets
As of December 31, 2009, other assets amount to TRY 205.034 Thousand. Other assets account does not exceed 10% of the total assets (December
31, 2008: TRY 74.029 Thousand). Inventories (*)
Clearing Account (**)
Insurance Receivables
Receivables from Credit Card Payments
Other Prepaid Expenses
Prepaid Rent Expenses
Office Supply Inventory
Other
Total
Current Period
56.129 54.284 28.645 27.798 16.814 4.294 1.441 15.629 205.034 Prior Period
33.536
15.619
13.011
3.690
1.941
6.232
74.029
(*) Inventory balance consists of saleable timeshare ownership interests as of the balance sheet date.
(**) At the previous year, debit transitory clearing account amounting to TRY 49.438 Thousand was netted off with the credit transitory clearing
account.
219
II.Explanations and Disclosures Related to the Consolidated Liabilities
1.1. Information on Maturity Structure of Deposits:
Accumulated
Up to 1 Up to 3
Up to 6
Up to 9
1 YearProfit Sharing
Current Period
Demand
Month
Months
Months
Months Up to 1 Year and Over
Accounts
378.510
-
-
-
-
-
-
-
-
809.888
1.258.531
318.877
-
155.259 1.484.479
-
637.921
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Commercial Sector
606.549
-
-
-
-
-
-
-
Other Institutions
10.696
-
-
-
-
-
-
-
217
-
-
-
-
-
-
-
247
-
-
-
-
-
-
-
Central Bank
-
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
-
Foreign Banks
-
-
-
-
-
-
-
-
Banks
247
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
-
165.049
290.408
25.345
-
130.357
282.838
-
Public Sector -
4
-
-
-
-
-
-
Commercial Sector
-
160.041
272.370
16.917
-
129.457
265.500
-
Other Institutions
-
5.002
17.466
8.428
-
805
16.483
-
-
2
572
-
-
95
855
-
Banks -
-
-
-
-
-
-
-
248.744
-
-
-
-
-
-
-
-
267.485
524.460
154.067
-
125.869
405.700
-
288.938
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23.823
-
-
-
-
-
-
-
Banks 1.743
-
-
-
-
-
-
-
Central Bank
-
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
-
Foreign Banks
-
-
-
-
-
-
-
-
Banks
1.743
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
-
160.028
406.998
294.104
-
70.748
162.781
-
Public Sector -
-
-
-
-
-
-
-
Commercial Sector
-
157.527
312.331
273.681
-
65.009
151.359
-
Other Institutions
-
78
75.992
20.351
-
-
7.787
-
-
2.423
18.675
72
-
5.739
3.635
-
-
-
-
-
-
-
-
-
37.850
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Residents in Turkey
-
-
-
-
-
-
-
-
Residents Abroad
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Residents in Turkey
-
-
-
-
-
-
-
-
Residents Abroad
-
-
-
-
-
-
-
-
Total (I+II+…..+IX+X+XI)
1.591.963 1.402.450
2.480.397
792.393
-
482.233 2.335.798
-
Total
378.510
4.027.034
637.921
20.212
606.549
10.696
217
247
247
893.997
4
844.285
48.184
1.524
248.744
1.477.581
288.938
263.372
23.823
1.743
1.743
1.094.659
959.907
104.208
30.544
37.850
9.085.234
220
Up to 1 Up to 3
Up to 6
Up to 9
Prior Period
Demand
Month
Months
Months
Months Up to 1 Year I. Real Persons Current Deposits-TRY
187.109
-
-
-
-
-
-
584.118
1.030.396
220.251
-
142.241
433.121
-
-
-
-
-
-
-
-
-
-
Commercial Sector
353.280
-
-
-
-
-
Other Institutions
4.831
-
-
-
-
-
2.476
-
-
-
-
-
1.816
-
-
-
-
-
Central Bank
-
-
-
-
-
-
Domestic Banks
2
-
-
-
-
-
Foreign Banks
-
-
-
-
-
-
Banks
1.814
-
-
-
-
-
Other
-
-
-
-
-
-
-
58.674
177.487
55.034
-
56.742
Public Sector -
24
18
-
-
-
Commercial Sector
-
56.925
143.446
54.490
-
56.719
Other Institutions
-
1.723
33.224
544
-
23
-
2
799
-
-
-
Banks -
-
-
-
-
-
125.716
-
-
-
-
-
-
211.034
385.994
138.826
-
105.605
257.408
-
-
-
-
-
-
-
-
-
-
12.458
-
-
-
-
-
Banks 1.331
-
-
-
-
-
Central Bank
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
Foreign Banks
-
-
-
-
-
-
Banks
1.331
-
-
-
-
-
Other
-
-
-
-
-
-
-
87.935
248.108
91.691
-
267.524
Public Sector -
-
2
-
-
-
Commercial Sector
-
83.712
236.532
49.904
-
218.490
Other Institutions
-
1.352
10.736
38.477
-
46.330
-
2.871
838
3.310
-
2.704
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Residents in Turkey
-
-
-
-
-
-
Residents Abroad
-
-
-
-
-
-
-
-
-
-
-
-
Residents in Turkey
-
-
-
-
-
-
Residents Abroad
-
-
-
-
-
-
Total (I+II+…..+IX+X+XI)
1.003.354
941.761
1.841.985
505.802
-
572.112
Accumulated
1 YearProfit Sharing
and Over
Accounts
-
-
473.196
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
148.349
-
-
-
144.607
-
2.991
-
751
-
-
-
-
-
207.252
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
108.550
-
-
-
102.307
-
109
-
6.134
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
937.347
-
Total
187.109
2.450.202
433.121
70.718
353.280
4.831
2.476
1.816
2
1.814
496.286
42
456.187
38.505
1.552
125.716
1.048.711
257.408
243.619
12.458
1.331
1.331
803.808
2
690.945
97.004
15.857
5.802.361
1.2.Current and Participation Accounts Attributable to Real Entities/Persons Under the Guarantee of Saving Deposit Insurance Fund
Exceeding the Limit of the Deposit Insurance Fund:
Under the Guarantee of Exceeding the Limit of
Saving Deposit Insurance
Saving Deposit Insurance
Current Period
Prior Period
Real Persons Current and Profit Sharing Accounts that are
not Subject to Commercial Activities
2.945.503 2.137.505 3.183.707 1.510.716
TRY Accounts
2.400.527 1.684.785 1.983.628 926.721
FC Accounts
544.976 452.720 1.200.079 583.995
Foreign Branches’ Deposits Under Foreign Authorities’ Insurance
-
-
-
Off-shore Banking Regions’ Deposits Under Foreign Authorities’ Insurance
-
-
-
1.3. Current and Profit Sharing Accounts which are not under the Guarantee of Deposit Insurance Fund:
The Parent Bank has no current or profit sharing accounts which are not under the guarantee of the Saving Deposit Insurance Fund except for the
current and profit sharing accounts of Board of Directors, general manager, assistant general managers, and their close families.
221
2. Information on Derivative Financial Liabilities Held-for-Trading
As of December 31, 2009, derivative financial liabilities held for trading amounts to TRY 155 Thousand (December 31, 2008: None).
Other Total
Current Period
TRY
FC
-
155
-
-
-
155
Prior Period
TRY
FC
-
-
-
-
Current Period (*)
TRY
FC
-
-
-
-
-
191.461
-
191.461
Prior Period (*)
TRY
FC
-
-
-
457.552
-
457.552
3. Information on Borrowings
3.1.Information on Banks and Other Financial Institutions:
Loans from the Central Bank of Turkish Republic
From Domestic Banks and Institutions
From Foreign Banks, Institutions and Funds
Total
(*) The Parent Bank does not have any syndicated loan in the current period (December 31, 2008: TRY 129.239 Thousand).
The details of the syndicated loans and short term, medium term and long term loans that are provided from banks and financial
institutions are summarized below:
Current Period Foreign Currency
2010
5.549 2011
-
2012
-
2014
42.390 2016
10.450 Total
58.389 Prior Period Foreign Currency
2009
45.202 2010
-
2011
-
2012
-
2016
-
Total
45.202
Total
EUR
110.005 4.580 17.281 1.206 -
133.072 Total
AED
78.435
5.326
-
-
1.876
85.637
USD
115.554
4.580
17.281
43.596
10.450
191.461
EUR
259.146
33.804
7.656
26.107
-
326.713
USD
382.783
39.130
7.656
26.107
1.876
457.552
3.2. Maturity Analysis of Borrowings:
Current Period
TRY
FC
Short-Term
-
47.206
Medium-Term and Long-Term
-
144.255
Total -
191.461
3.3. Additional Explanation Related to the Concentrations of the Parent Bank’s Major Liabilities:
None.
Prior Period
TRY
FC
-
164.502
-
293.050
-
457.552
222
4.Other Liabilities Exceeding 10% of the Balance Sheet Total Excluding Off-Balance Sheet Commitments and the Breakdown of Such
Liabilities Constituting at Least 20% of the Grand Total
Other liability items amount to TRY 198.286 Thousand and do not exceed 10% of the balance sheet total (December 31, 2008: TRY 111.553
Thousand).
Fees, Commissions Collected in Advance and Other Income
Payment Orders
Import Transfer Orders
Other
Total
Current Period
149.086 30.696 4.304 9.980 4.220 198.286 Prior Period
79.768
19.306
4.968
7.068
443
111.553
(*) At the previous year, debit transitory clearing account amounting to TRY 49.438 Thousand was netted off with the credit transitory clearing
account.
5.Information on Finance Lease Obligations
None.
Deferred Finance Lease Expenses (-)
Total
Current Period
TRY
FC
-
-
-
-
-
-
Prior Period
TRY
FC
6
-
6
-
Current Period
89.368 59.812 35.448 24.347 17 13.908 4.527 9.381 -
15.648 Prior Period
72.286
41.608
19.637
21.850
121
12.631
7.156
5.475
18.047
6. Information on Derivative Financial Liabilities for Hedging Purposes
None.
7. Explanations on Provisions
7.1. Information on General Provisions:
General Provisions
Provisions for First Group Loans and Receivables
Provisions for Second Group Loans and Receivables
Provisions for Non Cash Loans
223
7.2. Movement of General Provisions:
Current Period
Charge for Period
Prior Period
Opening Balance – January 1, 2008
Charge for Period
72.286
12.317
(8.833)
13.598
89.368
44.182
17.381
(212)
10.935
72.286
7.3. Information on Provision for Foreign Exchange Losses on the Foreign Currency Indexed Loans and Finance Lease Receivables:
As of December 31, 2009, the Group’s provision for foreign currency indexed loans amounts to TRY 18.331 Thousand (December 31, 2008: TRY
6.268 Thousand). Provisions for foreign currency indexed loans are offset under the loan balance in the financial statements.
7.4. Information on the Specific Provisions Provided for Unindemnified Non-Cash Loans:
As of December 31, 2009, the Group’s specific provision for unindemnified non-cash loans amounts to TRY 11.551 Thousand (December 31, 2008:
TRY 11.698 Thousand).
7.5. Explanations on Other Provisions:
7.5.1 .Information on Provisions for Potential Risks:
7.5.2. Information on Other Provisions:
Other Provisions
Provision for Credit Cards and Promotion of Banking Services
Provision for Unindemnified Non-cash Loans Payment Commitment for Checks
Litigation Provision Total
Current Period
4.909
11.551
5.389
885
22.734
Prior Period
5.673
11.698
2.338
378
20.087
Current Period
7.360 256 1.833 813 (952)
(738)
-
8.572 Prior Period
5.625
2.382
352
(733)
(266)
7.360
7.5.3.Movement of the Retirement Pay Provision:
Change in Scope of Consolidation Effect
Current Service Cost
Interest Cost
Severance Pay
Actuarial Loss/(Gain) Provision Reversal
Closing Balance - December 31, 2009
The Parent Bank employee benefits money, actuary valuation method used for calculation of financial tables which sated in numbered 19 Turkish
Accounting Standards.
As of December 31, 2009, the Group provided a provision of TRY 9.109 Thousand for the unused vacation liability (December 31, 2008: TRY 7.582
Thousand). The Group also allocated TRY 422 Thousand bonus provision for the current year.
224
8. Explanations on Taxes Payable
8.1. Information on Current Tax Liability:
As of December 31, 2009, the Group’s corporate tax payable is TRY 18.316 Thousand offsetting the prepaid corporate tax (December 31, 2008: TRY
16.051 Thousand).
Provision for Corporate Taxes
Prepaid Corporate Tax
Corporate Tax Payable 8.2. Information on Taxes Payable:
Current Period
83.845
(65.529)
18.316
Prior Period
65.212
(49.161)
16.051
Corporate Taxes Payable
Taxation of Securities
Property Tax
Banking Insurance Transaction Tax (BITT)
Foreign Exchange Transaction Tax
Value Added Tax Payable
Other
Total
Current Period
18.316 8.360 468 7.073 -
416 10.129 44.762 Prior Period
16.051
7.931
361
7.521
403
3.483
35.750
Current Period
2.257
3.137
-
-
-
-
161
320
5
5.880
Prior Period
1.111
1.543
79
157
5
2.895
8.3. Premiums Payable:
Social Security Premiums-Employee
Social Security Premiums-Employer
Bank Social Aid Pension Fund Premium-Employee
Bank Social Aid Pension Fund Premium-Employer Pension Fund Membership Fees and Provisions-Employee
Pension Fund Membership Fees and Provisions-Employer
Unemployment Insurance-Employee
Unemployment Insurance-Employer
Other
Total
8.4. Explanations on Deferred Tax Liabilities:
None (December 31, 2008: TRY 1.250 Thousand).
9. Information on Liabilities Regarding Assets Held for Sale and Discontinued Operations
None.
10. Information on Subordinated Loans
None.
11. Information on Shareholders’ Equity
11.1. Presentation of Paid-in Capital:
Common Stock
Preferred Stock (*)
Current Period
540.000
360.000
(*)The holders of the preferred stocks have the right to nominate candidates for the Board of Directors and the Audit Committee.
Prior Period
540.000
360.000
225
11.2.Paid-in Capital Amount, Explanation as on whether the Registered Share Capital System is Applicable at the Parent Bank, if so,
Amount of the Registered Share Capital Ceiling:
Registered capital system is not applied in the Parent Bank.
11.3.Share Capital Increases and Their Sources; Other Information on Increased Capital Shares in the Current Period:
None.
11.4. Information on Share Capital Increases from Capital Reserves:
None.
11.5.Information on Share Capital Increases from Revaluation Funds:
None.
11.6.Capital Commitments in the Last Fiscal Year and at the End of the Following Interim Period, General Purpose of These
Commitments and Projected Resources Required to Meet These Commitments:
None.
11.7.Indicators of the Parent Bank’s Income, Profitability and Liquidity for Prior Periods and Possible Effects of These Future
Assumptions on the Equity due to the Uncertainty of These Indicators:
The Parent Bank carries its activities in a high profitable level and retains the major portion of its net profit within equity by means of transfers to
reserve accounts and capital increases. Also, the Parent Bank allocates its equity to highly liquid and profit generating assets.
11.8.Summary Information of Privileges Granted To Preferred Stocks:
The holders of the preferred stocks have the right to nominate candidates for the Board of Directors and the Audit Committee.
11.9.Explanations on Marketable Securities Value Increase Fund:
From Associates, Subsidiaries, and Entities
under Common Control (Joint Vent.) Valuation Difference
Financial Assets Available for Sale Valuation Difference
Total
12. Explanations on Minority Shares
Paid in Capital
Share Premium
Legal Reserve
Prior Year Profit or Loss
Net Profit/(Loss) for the Period
Total
Current Period
Prior Period
-
-
-
2.921
2.921
-
2.921
-
Current Period
95.788
18.383
260
(10.967)
2.027
105.491
Prior Period
17.184
260
1.636
(1.454)
17.626
226
III.Explanations and Disclosures Related to the Consolidated Off-Balance Sheet Contingencies and Commitments
1. Explanation on Contingent Liabilities
1.1.Nature and Amounts of Irrevocable Loan Commitments:
Asset Purchase-Sale Commitments
Time Deposit Purchase-Sale Commitments
Capital Commitments for Associates and Subsidiaries (*)
Loan Granting Commitments
Commitments for Credit Card Expenditure Limits
Commitments for Credit Card and Retail Banking Promotions
Payment Commitments for Checks
Tax and Fund Liabilities from Export Commitments
Other Irrevocable Commitments
Total
Current Period
494.852 -
29.699 140.538 1.365.927 5.862 434.811 1.596 -
7.353
6.869
128.301
1.256.191
8.067
408.821
1.815.602
(*) Consist of capital commitment amounts of TRY 5.153 Thousand form the Parent Bank’s subsidiary Işık Sigorta, TRY 2.000 Thousand from Kredi
Garanti Fonu A.Ş. and TRY 22.546 Thousand from Tamweel Holding S.A.
1.2.Non-cash Loans Including Guarantees, Banker’s Acceptances, Letters of Credit and Other Financial Guarantees:
1.2.1.Non-cash Loans Including Guarantees, Banker’s Acceptances, Letters of Credit and Other Financial Guarantees:
Guarantees
Acceptances
Letter of Credits
Other Guarantees
Total
Current Period
7.369.461 120.412 1.250.120 145.984 8.885.977 Prior Period
8.646.573
169.474
1.221.268
178.100
10.215.415
1.2.2. Long Standing Guarantees, Temporary Guarantees, Sureties and Similar Transactions:
Long Standing Guarantees
Temporary Guarantees
Sureties and Similar Transactions
Total
Current Period
5.825.274 598.432 945.755 7.369.461 Prior Period
6.658.536
753.207
1.234.830
8.646.573
Current Period
148.667 2.888 145.779 8.737.310 8.885.977 Prior Period
163.418
29.495
133.923
10.051.997
10.215.415
1.3. Total Amount of Non-Cash Loans:
Guarantees Given Against Achieving Cash Loans
With Maturity of 1 Year or Less
With Maturity of More than 1 Year
Other Non-Cash Loans Total
227
2.Sectoral Risk Concentration of Non-Cash Loans
TRY
Agricultural
46.585 Farming and Raising Livestock 32.608 Forestry
12.793 Fishery
1.184 Manufacturing
1.398.487 Mining 88.855 Production
813.949 Electric, Gas and Water
495.683 Construction
1.740.366 Services
751.342 Wholesale and Retail Trade
183.147 Hotel, Food and Beverage Services
45.744 Transportation and Telecommunication 164.260 Financial Institutions
93.653 Real Estate and Renting Services
84.904 Self-Employment Services
39.387 Education Services
22.210 Health and Social Services
118.037 Other
47.738 Total 3.984.518 Current Period Prior Period
(%)
FC
(%)
TRY
(%)
FC
(%)
1,17 43.471 0,89
48.099 1,05 84.553 1,51
0,82 40.700 0,83
39.854 0,87 81.017 1,44
0,32 2.452 0,05
7.849 0,17 1.556 0,03
0,03 319 0,01
396 0,01 1.980 0,04
35,10 2.681.363
54,71 1.861.976 40,47 2.949.649 52,54
2,23 117.976
2,41
415.709 9,04 274.539 4,89
20,43 1.716.457
35,02
1.242.636 27,01 2.384.334 42,47
12,44 846.930
17,28
203.631 4,42 290.776 5,18
43,66 1.306.045
26,65 2.006.367 43,61 1.637.825 29,17
18,87 854.004
17,42
576.561 12,53 903.798 16,10
4,61 130.553
2,66
166.667 3,62 92.581 1,65
1,15 30.537
0,62
28.804 0,63 85.887 1,53
4,12 428.509
8,74
105.990 2,30 469.977 8,37
2,35 184.197
3,76
55.880 1,21 156.473 2,79
2,13 50.302
1,03
44.053 0,96 13.416 0,24
0,99 9.436
0,19
46.960 1,02 67.531 1,20
0,56 3.885
0,08
14.144 0,31 3.888 0,07
2,96 16.585
0,34
114.063 2,48 14.045 0,25
1,20 16.576
0,33
107.804 2,34 38.783 0,68
100,00 4.901.459
100,00 4.600.807 100,00 5.614.608 100,00
3.Information on Ist and IInd Group Non-Cash Loans
Non-Cash Loans
Letters of Guarantee Bank Acceptances Letters of Credit
Endorsements
Underwriting Commitments
Factoring Commitments
Other Commitments and Contingencies
I st Group
TRY
3.920.035 3.903.758 -
270 -
-
-
16.007 FC
4.866.117 3.368.824 120.412 1.248.134 -
-
-
128.747 II nd Group
TRY
FC
64.483 35.342
64.483 32.396
-
-
1.716
-
-
-
-
1.230
228
4.Information on Derivative Financial Instruments
Derivative Transactions According to Purposes
Trading
Hedging
Current Period
Prior Period
Type of Trading Transactions
Foreign Currency Related Derivative Transactions (I)
900.976
834.730 -
-
13.025 -
Swap Transactions
900.976
821.705 -
-
-
-
Option Transactions
-
-
-
Interest Related Derivative Transactions (II) -
-
-
Forward Rate Transactions
-
-
-
Interest Rate Swap Transactions
-
-
-
Interest Option Transactions
-
-
-
Futures Interest Transactions
-
-
-
Marketable Securities Call-Put Options (III)
-
-
-
Other Trading Derivative Transactions (IV)
-
-
-
A. Total Trading Derivative Transactions (I+II+III+IV)
900.976
834.730 -
Types of Hedging Transactions
Fair Value Hedges
-
-
-
Cash Flow Hedges
-
-
-
Net Investment Hedges
-
-
-
B. Total Hedging Related Derivatives
-
-
-
Total Derivative Transactions (A+B)
900.976
834.730 -
As of December 31, 2009, the breakdown of the Bank’s foreign currency forward transactions based on currencies are disclosed below in their TRY
equivalents.
Current Period
TRY
USD
EUR
Total
Prior Period
TRY
USD
EUR
Total
Forward Buy
452.277
-
-
452.277
Forward Buy
438.194 -
-
438.194 Forward Sell
448.699
448.699
Forward Sell
353.878
42.658
396.536
As of December 31, 2009, the Group does not have any derivative transactions for the purpose of cash flow hedge.
5.Explanations on Contingent Liabilities and Assets
As of the balance sheet date, there are 859 ongoing court cases against the Group amounting to TRY 28.239 Thousand, USD 2.319 and EUR 946
based on the information provided from the legal department of the Group. For some of the ongoing court cases mentioned above, provision
amounting to TRY 885 Thousand has been made in the accompanying consolidated financial statements. Besides, a lawsuit is filed in the Tax Court
as of January 11, 2007 in connection with the penalty of TRY 10.232 Thousand with the claim of participation of the Parent Bank under the Article
360 of the Tax Procedure Law, as an extension of an investigation of the Anatolian Corporate Tax Office’s Management held on a customer of
the Parent Bank, due to the transactions of the customer made at one of the branches of the Parent Bank. The Parent Bank management believes
that the court would end up in favor of the Parent Bank. Therefore, they did not make any provision in the accompanying consolidated financial
statements.
6. Explanations related to Custodian and Intermediary Services
None.
7. Summary Information on the Parent Bank’s Rating by the International Rating Institutions
FITCH RATINGS
Foreign Currency
Long Term
B
Short Term
B
Outlook
Stable
Turkish Lira
Long Term
B
Short Term
B
Outlook
Stable
National
Long Term
BBB+(tur)
Outlook
Stable
Individual Rating
D
Support Points
5
MOODY’S
Financial Strength Outlook
Foreign Currency
Long Term
Short Term
Outlook
Turkish Lira
Long Term
Short Term
Outlook
National
Long Term
Short Term
D
Stable
B1/NP
B1/NP
Stable
Ba1/NP
Ba1/NP
Stable
A1+r
TR-1
JCR EURASIA
Foreign Currency
Long Term
Short Term
Outlook
Long Term
Short Term
Outlook
National
Long Term
Short Term
Outlook
Stand Alone
Support Points
BBB
Stable
BBB
Stable
A- (Trk)
A- 1(Trk)
Stable
BC
3
229
230
IV.Explanations and Disclosures Related to the Consolidated Income Statement
1. Information on Profit Share Income
1.1. Information on Profit Share on Loans:
Profit Share on Loans
Short Term Loans
Medium and Long Term Loans
Profit Share on Non-Performing Loans
Premiums Received from Resource Utilization Support Fund
Group I
TRY
1.118.138 587.026 509.195 21.917 -
FC
55.542 23.829 31.713 -
-
Group II
TRY
26.482 6.226 20.256 -
-
FC
3.194
546
2.648
-
1.2. Profit Share from Banks:
The Central Bank of Turkish Republic (Reserve Deposit)
Domestic Banks
Foreign Banks (*)
Total
Current Period
TRY
FC
19.661 73 3.024 -
50.740 1.475 -
-
TRY
FC
22.345 3.496
2.710 38.590 10.272
-
63.645 13.768
Current Period
TRY
FC
13.313
-
-
-
7.020
-
7.020
-
27.353
-
Prior Period
TRY
FC
294
-
35
-
329
-
(*) Foreign banks include profit shares from murabaha loans.
1.3. Information on Interest Received from Marketable Securities:
Held-for-Trading Financial Assets
Investments Held-to-Maturity
Total
1.4. Information on Profit Share Income Received from Associates and Subsidiaries:
Profit Share Income Received from Associates and Subsidiaries
Current Period
17.917
Prior Period
1.325
Current Period
TRY
FC
-
18.259
-
-
-
-
-
18.259
-
-
-
-
-
18.259
Prior Period
TRY
FC
-
21.630
-
-
144
-
21.486
-
-
-
21.630
2. Information on Profit Share Expenses
2.1. Information on Interest on Funds Borrowed:
Banks
Domestic Banks
Foreign Banks
Other Institutions
Total
231
2.2. Information on Profit Share Expense Given to Associates and Subsidiaries:
Profit Share Expenses Given to Associates and Subsidiaries
Current Period
517
Prior Period
902
2.3. Information on Profit Share Expense to Marketable Securities Issued:
None.
2.4. Distribution of Profit Share Expense on Deposits Based on Maturity of Deposits:
Profit Sharing Accounts
Up to 1 Up to 3
Up to 6
Up to 9
Up to 1 More than
Account Name
Month
Months
Months
Months
Year
1 Year
TRY
Funds Collected from Banks
-
-
-
-
-
-
77.613 163.026 56.275 -
23 1
-
-
-
10 Commercial Sector Profit Sharing Acc.
11.052 33.349 6.530 -
371 1.761 1.422 -
76 3.538 Total
89.059 198.137 64.227 -
37.819 166.286 FC
Funds Collected from Banks
183 91 22 -
-
-
11.047 17.453 12.438 -
-
-
-
-
-
-
Commercial Sector Profit Sharing Acc.
3.017 13.220 9.263 -
13 490 4.762 -
1.553 302 Precious Metal Deposits
-
-
-
-
-
-
Total
14.260 31.254 26.485 -
19.816 32.514 Grand Total
103.319 229.391 90.712 -
57.635 198.800 Total
455.430
34
92.896
7.168
555.528
296
72.242
44.671
7.120
124.329
679.857
3. Explanations on Dividend Income
The Parent Bank’s subsidiary Işık Sigorta A.Ş. has obtained TRY 3.588 Thousand of dividend income (December 31, 2008: TRY 312 Thousand).
4. Information on Net Trading Income
Income
Profit on Capital Market Operations
Profit on Derivative Financial Instruments
Foreign Exchange Gains
Losses (-)
Losses on Capital Market Operations
Losses on Derivative Financial Instruments
Foreign Exchange Losses
Current Period
2.205.092 -
276.561 1.928.531 (2.111.204)
-
(73.367)
(2.037.837)
Prior Period
2.912.257
53.505
2.858.752
(2.851.541)
(38.139)
(2.813.402)
Current Period
6.843 4.354 77.440 79.500 23.778 191.915 Prior Period
6.452
1.691
49.773
74.170
8.999
141.085
5. Explanations on Other Operating Income
The detail of other operating income is stated as below:
Communication Expense Reversal
Gain on Sale of Assets
Change in Expense of Previous Years
Other
Total
(*) Change in expense of previous years consists of amounting to TRY 76.026 Thousand special provision, general loan provision and provision
reversal related to receivables and fees from the doubtful receivables (December 31, 2008: TRY 48.704 Thousand).
232
6.Provision Expenses Related to Loans and Other Receivables of the Banks
Specific Provisions for Loans and Other Receivables
III. Group Loans and Receivables
IV. Group Loans and Receivables
V. Group Loans and Receivables
Doubtful Commission, Fee and Other Receivables
General Provision Expenses
Provision Expenses for Possible Losses
Marketable Securities Impairment Losses
Investment Securities Available for Sale
Impairment Provision Expense
Associates
Subsidiaries
Entities under Common Control
Investments Held to Maturity
Other
Total
Current Period
194.762 85.562 18.408 82.224 8.568 12.317 -
2.951 2.951 -
-
-
-
-
-
128.982
54.969
20.553
48.882
4.578
17.381
15.172
15.172
10.251
171.786
Current Period
227.763 1.908 -
-
34.952 -
-
2.217 -
3.698 2.965 11 162.852 40.457 3.423 31.241 87.731 5.649 109.035 551.050 Prior Period
182.998
2.734
410
25.739
1.571
598
1.541
1.006
152.203
33.196
4.208
33.170
81.629
646
87.724
457.170
7. Information on Other Operating Expenses
Personnel Expenses
Provision for Employee Termination Benefits
Bank Social Aid Provision Fund Deficit Provision
Impairment Expenses of Fixed Assets
Depreciation Expenses of Fixed Assets Impairment Expenses of Intangible Assets
Impairment Expense of Goodwill
Amortization Expenses of Intangible Assets Impairment Provision for Investments Accounted for under Equity Method
Impairment Expenses of Assets to be Disposed (*)
Depreciation Expenses of Assets to be Disposed
Impairment Expenses of Assets Held for Sale Other Operating Expenses Rent Expenses
Maintenance Expenses Advertisement Expenses
Other Expenses
Loss on Sales of Assets
Other Total
(*) Amounting TRY 871 Thousands reversal of impairment of asset held for sale is accounted within the adjustment account related to prior year
losses.
8. Explanation on Continuing Operations and Discontinued Operations Profit or Loss Before Tax
The Group’s profit before tax is increased by 27,61% as compared to the prior year figures and total profit before tax amounts to TRY 386.169
Thousand. Profit before tax includes TRY 622.547 Thousand net profit share income, TRY 245.391 Thousand net fees and commission income. Total
operating expense amount is TRY 551.050 Thousand.
233
9. Explanation on Continuing Operations and Discontinued Operations Tax Provision
As of December 31, 2009, current tax expense is TRY 83.845 Thousand (December 31, 2008: TRY 65.212 Thousand) and deferred tax income is TRY
5.494 Thousand (December 31, 2008: TRY 65 Thousand deferred tax expense).
10. Explanation on Continuing Operations and Discontinued Operations Net Operating Profit/Loss After Taxes
Net profit of the Group is increased by 28,06% as of December 31, 2009 as compared to the prior year’s net profit.
11. Explanations on Net Income/Loss for the Period
The nature and amount of certain income and expense items from ordinary operations is disclosed if the disclosure for nature, amount and
repetition rate of such items is required for the complete understanding of the Group’s performance for the period: None.
Effect of changes in accounting estimates on income statement for the current and, if any, for subsequent periods: None.
12. The Description and Amounts of Items which Constitute at Least 20% of Other Items in the Income Statement, if These Liabilities
Exceed 10% of the Total Income Statement
Other fees and commissions received/given are stated as below:
Other Fees and Commissions Received
Member firm-POS
Other
Total
Current Period
64.712
39.363
36.278
140.353
Prior Period
61.584
45.294
38.944
145.822
Other Fees and Commissions Given
Other
Total
Current Period
47.355
22.055
69.410
Prior Period
59.206
10.713
69.919
13. Nature and Amount of Changes in Accounting Estimates which have Material Effects on The Current Period or Expected to have
Material Effects on the Subsequent Periods
None.
V.Explanations and Disclosures Related to the Statements of Shareholders’ Equity Movement
1.I ncreases from Valuation of Financial Assets Available for Sale
Increase resulting from revaluation of financial assets available for sale is TRY 2.921 Thousand (December 31, 2008: None).
2. Increases Due to Cash Flow Hedges
None.
3. Reconciliation of Foreign Exchange Differences at Beginning and End of Current Period
None.
4.Dividends Declared Subsequent to the Balance Sheet Date, but before the Announcement of the Financial Statements
None.
5.Dividends per Share Proposed Subsequent to the Balance Sheet Date
None.
6.Proposals to General Assembly for the Payment Dates of Dividends and if It will not be Appropriated the Reasons for This
The Board of Directors has not decided for profit appropriation as of the date of the financial statements are authorized for issue.
234
7.Amounts Transferred to Legal Reserves
As of December 31, 2009, amount transferred to legal reserves is TRY 12.325 Thousand (December 31, 2008: TRY 11.297 Thousand).
8. Information on Shares Issued
None.
1. Cash and Cash Equivalents
1.1.Components of Cash and Cash Equivalents and Accounting Policies Used to Determine Such Components:
“Cash” is defined as cash in vault and foreign currency cash, money in transit, cheques purchased, unrestricted amount in the Central Bank and
demand deposits in banks, and “Cash equivalents” is defined as time deposits in banks having original maturity less than three months. Reserve
deposits provided in the Central Bank blocked accounts are presented as cash equivalents.
1.2.Cash and Cash Equivalents at the Beginning of the Period:
Cash
Cash Equivalents
Banks-Time Deposit
Current Period
1.241.440
66.974
1.055.618
118.848
23.031
23.031
-
1.264.471
Prior Period
1.399.866
62.690
930.952
406.224
1.399.866
Current Period
2.477.462 131.327 2.209.147 136.988 136.033 36.033 100.000 2.613.495 Prior Period
1.241.440
66.974
1.055.618
118.848
23.031
23.031
1.264.471
1.3.Cash and Cash Equivalents at the End of the Period:
Cash
Cash Equivalents
Banks-Time Deposit
235
VII.Explanations on the Risk Group of the Parent Bank
1.Transaction Volume of the Risk Group of the Parent Bank, Outstanding Loan and Deposit Balances and Current Income and Expense
Amounts
1.1. Current Period (31.12.2009):
Direct and Indirect Other Entities Included
Risk Group of the Parent Bank
Subsidiaries and Associates
in the Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
63.823 2.215 -
-
88.820 58.989
52.357
9.225
-
-
220.914
68.491
17.917
-
-
-
25.148
1
1.2. Prior Period (31.12.2008):
Direct and Indirect Other Entities Included
in the Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
-
432 -
-
27.587 33.530
63.823 2.215 -
-
88.820 58.989
1.325 -
-
-
8.985 120
1.3.Risk Group Deposits Balances of the Parent Bank:
Balance at the Beginning of Period
Balance at the End of Period Profit Share Expense
Current Period
7.648 5.650
517
Direct and Indirect Shareholders of the Group
Current Period
-
-
-
in the Risk Group
Current Period
77.269
77.749
4.553
1.4. Information on Forward and Option Agreements and Other Similar Agreements with Related Parties:
None.
1.5 Information on Compensation of Key Management Personnel:
During the current period, the total amount of remuneration and benefits provided to the key management personnel of the Group is TRY 10.212
Thousand (December 31, 2008: TRY 8.132 Thousand). Besides remuneration, the key management personnel also receive some further tangible
rights.
236
VIII.E xplanations on the Parent Bank’s Domestic Branches, Agencies and Branches Abroad and Off-Shore Branches
1. Explanations on the Parent Bank’s Domestic Branches, Agencies and Branches Abroad and Off-Shore Branches
Domestic Branches
Rep-Offices Abroad
Branches Abroad
Off-shore Branches
Number
158
Employees
4.074
-
-
-
-
-
-
Country
-
-
-
Total Assets
-
-
Capital
-
Işık Sigorta A.Ş. from the consolidated subsidiaries operates domestically and currently has 4 regional management office, 2 regional representation
office and 940 (including the Bank branches) agencies and 180 personnel as of 31 December 2009. Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.
operates domestically and currently has 1 personnel as of December 31, 2009.
2. Explanations on Branch and Agency Openings or Closings of the Parent Bank:
The Parent Bank opened 9 new branches in 2009.
SECTION SIX
OTHER EXPLANATIONS
I.Other Explanations on Operations of the Group:
1. Subsequent Events:
As of February 4, 2010, the Parent Bank has paid for TRY 21.548 Thousand of capital commitment and as a consequence, became owner of
40% of Tamwell Africa Holding SA that is owned by the Islamic Corporation for the Development of the Private Sector (“ICD”) which is a group
establishment of the Islamic Development Bank (“IDB”).
SECTION SEVEN
I.Explanations on the Independent Auditor’s Report
The financial statements of the Parent Bank for the period January 1 – December 31, 2009 were audited by DRT Bağımsız Denetim ve Serbest
Muhasebeci Mali Müşavirlik A.Ş (Member of Deloitte Touche Tohmatsu).
The independent auditor’s report is presented at the beginning of the financial statements and related notes.
II.Other Footnotes and Explanations Prepared by the Independent Auditors
There is no significant matter or disclosure which may be in connection with the Group’s operations but not explained in the above sections.
237
Branches
Branch
Head Office
Head Office
Operations Center
Southern Anatolia
Regional Hedquarters
Address
Küçüksu Cad. Akçakoca Sok. No: 6 Ümraniye 34768 İstanbul
Phone
(0216) 633 50 00
Fax
(0216) 633 50 50
Kısıklı Cad. Haluk Türksoy Sok. No: 14 Altunizade-İstanbul
(0216) 554 50 00
(0216) 554 03 03
Mücahitler Mah. Gazimuhtarpaşa Bulvarı No: 65 Şehitkamil-Gaziantep
(0342) 323 53 12
(0342) 323 51 61
(0216) 372 13 00 (0312) 219 18 39
(0212) 272 50 04 (0232) 441 47 40
(0212) 657 95 77
(0224) 224 50 50
(0216) 372 15 50
(0312) 219 18 40
(0212) 272 60 69
(0232) 441 52 04
(0212) 657 61 54
(0224) 221 86 14
BANK ASYA CORPORATE BRANCHES
Anadolu Corporate Branch Değirmen Sok. Nidakule iş merkezi No: 18 Kat: 19 Kozyatağı/Kadıköy/İstanbul
Başkent Corporate Branch Armada İş Merkezi,Eskişehir yolu, No: 6 Kat: 20/34 Söğütözü 06520 Ankara
Boğaziçi Corporate Branch Esentepe Mah. Büyükdere Cad. No: 102 Maya Center B Blok K: 22 Şişli/İstanbul
Ege Corporate Branch
Akdeniz Mah. Akdeniz Cad. No: 1 Reyent İşhanı Kat: 6 Konak 35210 İzmir
Trakya Corporate Branch
Güneşli Evren Mah. Koçman Cad. No: 54 Kat: 1 Güneşli 34212 İstanbul
Uludağ Corporate Branch Haşim İşcan Cad. Tuğsa İş Merkezi Kat: 1 Osmangazi 16030 Bursa
BANK ASYA İSTANBUL BRANCHES
İstanbul Asian Side
Acıbadem Branch
Acıbadem Cad. Kazaca Apt. A Blok No: 97/B Kadıköy-İstanbul
Altıyol Branch
Osmanağa Mah. Söğütlüçeşme Cad. No: 29 Kadıköy/İstanbul
Altunizade Branch
Kısıklı Cad. No: 7 Altunizade/İstanbul
Beykoz Branch
Fevzi Paşa Cad .No: 78 Beykoz/İstanbul
Çekmeköy Branch
Meclis Mah. Teraziler Cad. Aşkın Sok. No: 19/B Sancaktepe/İstanbul
Dolayoba Branch
Çınardere Mah. Akan Sok. No: 19 Pendik 34895 İstanbul
Erenköy Branch
Şemsettin Günaltay Cad. Çiğdem Apt. No: 238 Erenköy/İstanbul
İmes Sanayi Branch
İmes Sanayi Sitesi C Blok 301 Sok. No: 3/A Yukarı Dudullu 34775 İstanbul
Kadıköy Branch
Tuğlacıbaşı Mah. Poyraz Sok. Sadıkoğlu 1 İş Merkezi No: 16 Ziverbey Kadıköy 34710 İstanbul Kartal Branch
Ankara Cad. No: 96 Kartal-İstanbul
Kavacık Branch
Mihrabad Cad. Martı İş Merkezi No: 238 Beykoz 34810 İstanbul Kozyatağı Branch
Şaşmaz Plaza Saniye Ermutlu Sok. No: 4 Kozyatağı 34742 İstanbul Kurtköy Branch
Kurtköy Mah. Üstün Cad. No: 2 Kurtköy-Pendik/İstanbul
Libadiye Branch Libadiye Cad.No: 60 Üsküdar-İstanbul
Maltepe Branch
Bağlarbaşı Mah. Bağdat Cad. No: 485/B Maltepe/İstanbul
Merkez Branch
Küçüksu Cad. Akçakoca Sok. No: 6 Ümraniye/İstanbul
Pendik Branch
Doğu Mah. 23 Nisan Cad. No: 59 Pendik 34895 İstanbul Sarıgazi Branch
Meclis Mah. Eski Ankara Cad. No: 34 Sancaktepe Sarıgazi/İstanbul
Sultanbeyli Branch
Fatih Bulvarı No: 193 Sultanbeyli 34920 İstanbul
Tepeüstü Branch
Alemdağ Cad. No: 572/A Ümraniye 34776 İstanbul Tuzla Free Zone Branch
Tuzla Serbest Bölgesi Hakkı Matraş Cad. No: 11 Tuzla 34950 İstanbul Tuzla Branch
Aydıntepe Mah. Irmak Sok. No: 1 Tuzla 34947 İstanbul
Ümraniye Branch
Namık Kemal Mah. Sütçü Cad. No: 2 Ümraniye 34762 İstanbul Ümraniye Çarşı Branch İstiklal Mah. Alemdağ Cad. No: 174/A Ümraniye/İstanbul
Üsküdar Branch
Atlas Çıkmazı No: 5/ 40 Üsküdar 34672 İstanbul
İstanbul European Side
Arnavutköy Branch
Merkez Mah. Fatih Cad. No: 118 Arnavutköy Gaziosmanpaşa/İstanbul
Avcılar Branch
E-5 Yolu Üzeri Merkez Mah. Engin Sok. No: 1 Avcılar 34310 İstanbul
Bağcılar Branch
Merkez Mah. 1.Sok. No: 9 Bağcılar/İstanbul
Bahçelievler Branch
Adnan Kahveci Bulvarı Tuğcular Apt. No: 45-1 Bahçelievler/İstanbul
Bakırköy Branch
İncirli Cad. No: 113 Bakırköy 34740 İstanbul
Bakırköy Çarşı Branch
Fişekhane Cad. No: 46 Bakırköy-İstanbul
Başakşehir Branch
Başakşehir Konutları 1.Etap Girişi Başakşehir-İkitelli/İstanbul
Bayrampaşa Branch
Yenidoğan Mah. Abdi İpekçi Cad. Parkhan No: 8/B Bayrampaşa/İstanbul
Beşiktaş Branch
Sinanpaşa Mah. Beşiktaş Cad. No: 1/A Beşiktaş/İstanbul
Beşyüzevler Branch
Yıldırım Mah. Eski Edirne Asfaltı Cad. No: 213/A Bayrampaşa/İstanbul
Beylikdüzü Branch
Beylikdüzü Mevkii E-5 Yolu Üzeri (İstanbul Outlet Park AVM Girişinde) B.Çekmece/İstanbul
Çağlayan Branch
Çağlayan Vatan Cad. Avrasya İş Merkezi No: 6/A Çağlayan-Kağıthane 34403 İstanbul
Esenler Branch
Menderes Mah. Atışalanı Cad. No: 15 Esenler 34230 İstanbul
Esenyurt Branch
Doğan Araslı Cad. No: 1/3 Esenyurt 34517 İstanbul
Fatih Branch Akdeniz Cad. No: 10 Fatih 34260 İstanbul
Fevzipaşa Branch
İskenderpaşa Mah. Macar Kardeşler Cad. No: 59 Fatih/İstanbul
Florya Branch
Şenlikköy Mah. Florya Asfaltı No: 76/3 Florya Bakırköy 34153 İstanbul
GOP Branch
Salihpaşa Cad. Şirinler Sok. No: 1 Gaziosmanpaşa 34130 İstanbul Güneşli Branch
Evren Mah. Koçman Cad. No: 40 Güneşli-Bağcılar/İstanbul
(0216) 545 07 85
(0216) 330 71 21
(0216) 474 42 11
(0216) 323 91 06
(0216) 466 13 53
(0216) 379 74 84 (0216) 467 16 06 (0216) 540 24 24
(0216) 449 27 10 (0216) 389 99 96 (0216) 537 19 70 (0216) 445 36 26
(0216) 378 34 31
(0216) 545 30 90
(0216) 305 00 50 (0216) 633 69 43
(0216) 491 69 42 (0216) 620 95 00
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(0216) 466 43 50
(0216) 394 07 81 (0216) 392 93 89
(0216) 523 04 50 (0216) 328 50 30
(0216) 532 55 55
(0212) 597 08 28
(0212) 694 80 00
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(0212) 466 05 06 (0212) 542 77 09
(0212) 486 19 24
(0212) 493 13 00 (0212) 227 95 00
(0212) 618 80 35
(0212) 872 68 48 (0212) 291 80 08 (0212) 611 00 15
(0212) 450 00 66
(0212) 531 88 87 (0212) 521 10 70
(0212) 573 48 28
(0212) 418 49 99 (0212) 630 93 93 (0216) 327 54 22
(0216) 330 72 85
(0216) 474 41 48
(0216) 323 91 05
(0216) 466 13 43
(0216) 379 96 60
(0216) 467 00 76
(0216) 540 51 70
(0216) 449 27 09
(0216) 389 55 66
(0216) 425 02 77
(0216) 445 33 62
(0216) 595 28 10
(0216) 545 08 11
(0216) 305 00 40
(0216) 632 13 50
(0216) 491 69 46
(0216) 620 99 10
(0216) 419 21 10
(0216) 466 43 65
(0216) 394 07 87
(0216) 392 30 37
(0216) 523 04 56
(0216) 328 40 99
(0216) 532 90 90
(0212) 597 70 44
(0212) 694 78 78
(0212) 435 75 57
(0212) 502 80 88
(0212) 466 37 00
(0212) 542 51 46
(0212) 485 35 68
(0212) 493 16 16
(0212) 227 22 40
(0212) 618 70 65
(0212) 873 13 16
(0212) 291 66 64
(0212) 611 00 98
(0212) 450 04 33
(0212) 531 80 87
(0212) 521 10 75
(0212) 573 40 39
(0212) 418 47 70
(0212) 630 36 20
238
Branches
Branch
Address
Hadımköy Branch
Akçaburgaz Mah. Hadımköy Yolu No: 148 Esenyurt/İstanbul
İkitelli Branch
İkitelli Organize Sanayi Bölgesi Atatürk Cad.No: 137 İkitelli/İstanbul
İstoç Branch
İstoç Tic.Merkezi 3. Ada No: 85-87 Mahmutbey Bağcılar 34217 İstanbul
Kağıthane Branch
Mezbaha Sok. No: 1 Kağıthane/İstanbul
Karaköy Branch
Müyeeyyedzade Mah. Kemeraltı Cad. No: 6/A Karaköy/İstanbul
Kuyumcukent Branch
29 Ekim Cad. Kuyumcukent Sitesi Atölye Bloğu Zemin Kat 1.Sok No: 12 Yenibosna/İstanbul
Laleli Branch
Mustafa Kemal Paşa Cad. No: 86 Aksaray Fatih/İstanbul
Levent Sanayi Branch
Sanayi Mah.S ultan Selim Cad.No: 1/C Kağıthane/İstanbul
Maslak Branch
Ayazağa Mah. Büyükdere Cad. No: 71 Maslak-Şişli/İstanbul
Mecidiyeköy Branch
Mecidiyeköy Mah. Mecidiyeköy Cad. No: 6/A Şişli/İstanbul
Mercan Branch
Prof. Cemil Birsel Cad. No: 25 Eminönü/İstanbul
Merter Branch
Fatih Cad. No: 24 Merter/İstanbul Sarıyer Branch
Şehit Midhat Cad. No: 27 Sarıyer/İstanbul
Sefaköy Branch
Tevfik Bey Mah. Emrullah Efendi Cad. No: 22 Sefaköy 34295 İstanbul
Sultançiftliği Branch
Eski Edirne Asfaltı No: 710 Sultançiftliği 34270 İstanbul Sultanhamam Branch
Vasıfçınar Cad. No: 95 Sultanhamam- Eminönü 34430 İstanbul Şirinevler Branch
Hürriyet Mah. Mahmutbey Cad. No: 3/B Bahçelievler/İstanbul
Şişli Branch
Meşrutiyet Mah. Halaskargazi Cad. No: 98/A Şişli/İstanbul
Taksim Branch
İnönü Mah. Cumhuriyet Cad. Şakirpaşa İşhanı No: 89 Şişli/İstanbul Topçular Branch
Kışla Cad. Kurtoğlu İş Merkezi No: 21/7 Eyüp/İstanbul
Topkapı Branch
Merkezefendi Mah. Davutpaşa Cad. No: 119 Zeytinburnu 34010 İstanbul
Zeytinburnu Branch
Prof. Muammer Aksoy Cad. No: 41 Zeytinburnu 34020 İstanbul
BANK ASYA ANATOLIA BRANCHES
Adana
Adana Branch
Çınarlı Mah. Atatürk Cad. Kemal Özülkü İş Merkezi No: 23 Zeminkat Seyhan 01060 Adana
Çukurova Branch
Turgut Özal Bulvarı Dosteller Apt. No: 176 Seyhan/Adana
Adapazarı Branch
Atatürk Bulvarı No: 75 Adapazarı
Adıyaman Branch
Atatürk Cad. Ulu Cami Yanı 444 Sok. No: 10 Adıyaman
Afyon Branch
Yüzbaşı Agâh Cad. No: 1 Diler İş Merkezi 03200 Afyon
Aksaray Branch
Hacı Hasanlı Mah. 716 Sok. No: 16 Aksaray
Ankara
Ankara Branch
Kızılelma Mah. Anafartalar Cad. No: 63 Ulus 06060 Ankara
Balgat Branch
Ehlibeyt Mah. Ceyhun Atuf Kansu Cad. No: 100/T(B Blok No: 20) Balgat/Ankara
Çankaya Branch
Güzeltepe Mah. Hoşdere Cad. No: 222 Çankaya 06550 Ankara
Etlik Branch
Yunus Emre Cad. No: 5 Etlik Keçiören 06010 Ankara
Kızılay Branch
Meşrutiyet Cad. No: 16/A Kızılay 06640 Ankara Kızılcahamam Branch
Cengiz Topel Cad. No: 5/17 Kızılcahamam 06890 Ankara
Ostim Branch
100.Yıl Bulvarı No: 74 06370 Yenimahalle/Ostim/Ankara
Polatlı Branch
Ankara Cad. No: 36 Polatlı/Ankara Sincan Branch Atatürk Mah. Onur Sok. No: 16/A Sincan/Ankara
Siteler Branch
Demirhendek Cad. No: 68 Siteler 06160 Ankara
Yenimahalle Branch
Ragıp Tüzün Cad. No: 167 Yenimahalle/Ankara
Antalya
Alanya Branch
Atatürk Cad. No: 60 Karat Otel Altı Alanya 07400 Antalya
Antalya Branch
Adnan Menderes Bulvarı Has İş Merkezi No: 9 07040 Antalya
Aspendos Bulvarı Branch
Tarım Mah. Aspendos Bulvarı Olimpos Erüst İş Merkezi B Blok No: 4 Antalya
Kepez Branch
Yükseliş Mah. Mithat Paşa Cad. Görkem Apt. No: 22/1 07020 Antalya
Aydın Branch
İstiklal Cad. No: 9 Aydın
Nazilli Branch
Altıntaş Mh. İstasyon Bulvarı No: 23 Nazilli/Aydın
Balıkesir Branch
Altıeylül Mah. Kızılay Cad. No: 6 10100 Balıkesir
Batman Branch
Cumhuriyet Cad. Hamidiler Pasajı No: 1/2 72050 Batman
Bolu Branch
İzzet Baysal Cad. Güney Kaya Pasajı No: 77 Bolu
Telefon
(0212) 886 26 10
(0212) 549 81 41 (0212) 659 60 00 (0212) 295 81 33
(0212) 243 85 40 (0212) 603 12 40 (0212) 458 77 77 (0212) 283 34 20
(0212) 286 09 32
(0212) 356 37 00 (0212) 526 64 04
(0212) 637 69 00 (0212) 271 50 65 (0212) 541 68 08
(0212) 667 34 34 (0212) 522 22 85 (0212) 639 18 19
(0212) 296 70 05 (0212) 240 22 95
(0212) 674 66 43
(0212) 482 51 65
(0212) 546 42 42
(0322) 457 67 00
(0322) 233 09 81
(0264) 281 39 10 (0416) 216 60 50
(0272) 214 50 00 (0382) 212 74 36 (0312) 310 47 47 (0312) 473 54 20
(0312) 439 52 50
(0312) 321 86 31
(0312) 419 37 00 (0312) 736 05 90
(0312) 354 84 74 (0312) 621 33 58
(0312) 276 81 10
(0312) 353 42 00
(0312) 315 34 43
(0242) 519 07 02
(0242) 248 00 71 (0242) 313 18 18
(0242) 345 94 45
(0256) 213 03 90 (0256) 314 10 70
(0266) 239 66 13 (0488) 212 07 95 (0374) 212 15 15
Faks
(0212) 886 26 25
(0212) 549 81 40
(0212) 659 33 11
(0212) 294 98 64
(0212) 243 85 41
(0212) 603 12 49
(0212) 458 78 58
(0212) 269 67 69
(0212) 328 16 68
(0212) 356 17 17
(0212) 526 64 15
(0212) 637 69 10
(0212) 271 55 88
(0212) 541 78 44
(0212) 667 53 53
(0212) 522 53 00
(0212) 639 18 29
(0212) 296 70 06
(0212) 240 64 13
(0212) 674 81 55
(0212) 483 20 33
(0212) 546 45 60
(0322) 457 52 53
(0322) 233 09 31
(0264) 281 39 01
(0416) 216 66 90
(0272) 214 33 33
(0382) 213 15 70
(0312) 310 47 57
(0312) 473 54 30
(0312) 439 52 55
(0312) 322 61 45
(0312) 417 29 00
(0312) 736 09 30
(0312) 354 40 05
(0312) 621 26 49
(0312) 276 81 15
(0312) 353 57 00
(0312) 315 53 80
(0242) 519 05 84
(0242) 242 43 45
(0242) 311 77 80
(0242) 345 95 59
(0256) 225 22 26
(0256) 314 15 88
(0266) 239 68 40
(0488) 212 07 22
(0374) 212 35 07
239
Branches
Branch
Bursa
Bursa Branch
Demirtaş Branch İnegöl Branch Nilüfer Branch Yıldırım Branch
Çanakkale Branch
Çorum Branch
Denizli Branch
Diyarbakır
Dağkapı Branch
Diyarbakır Branch
Address
Haşim İşçan Cad. No: 2 Osmangazi 16220 Bursa
Panayır Mah. Yeni Yalova Cad. No: 455/H Özyıldırım Plaza Osmangazi/Bursa
Nuri Doğrul Cad. No: 29 İnegöl/Bursa
İhsaniye Mah. İzmir yolu Bankalar Cad. Çilek Sok. Atalay 9 Sitesi A Blok No: 22 Nilüfer/ Bursa
Duaçınarı Mah. Ankara Yolu Cad. No: 237 Yıldırım/Bursa
Çarşı Cad. No: 131 Çanakkale
İnönü Cad. No: 51 19100 Çorum
Saraylar Mah. Enver Paşa Cad. Bayram Yeri No: 11 Merkez 20100 Denizli
Gazi Cad. No: 18 Diyarbakır
Şanlıurfa Yolu Bulvarı Serin Apt. No: 57/C Diyarbakır
Telefon
(0224) 225 14 80 (0224) 211 19 09
(0224) 715 17 55
(0224) 249 49 09
(0224) 367 78 00 (0286) 212 05 00
(0364) 224 11 60 (0258) 241 87 88 (0412) 224 39 39 (0412) 251 62 61 Düzce Branch
Elazığ Branch
Ereğli Branch
Erzurum Branch
Eskişehir Branch
Gaziantep
Gatem Branch
Gaziantep Branch
Suburcu Branch
Hatay
Antakya Branch
İskenderun Branch
Isparta Branch
İzmir Aliağa Branch
Bornova Branch
İzmir Branch
Karabağlar Branch
Karşıyaka Branch
Yenişehir Branch
Gazi Bulvarı Branch
Kahramanmaraş Branch Karabük Branch
Kayseri
Kayseri Branch
Sanayi Branch
Kocaeli
Gebze Branch
Gebze Çarşı Branch
İzmit Branch
Konya Büsan Branch
Konya Branch
Konya Ereğli Branch
Mevlana Branch
Kırıkkale Branch
Kütahya Branch
Malatya Branch
İstanbul Cad. No: 3/B Düzce
Rızaiye Mah. Gazi Cad.No: 2 Zemin Kat: 4 Elazığ Müftü Mah. Yukarı Sk. No: 4 Karadeniz Ereğli 67300 Zonguldak
İstasyon Cad. No: 20 25200 Erzurum İstiklal Cad. Şair Fuzuli Cad. No: 24 Eskişehir
Gatem Toptancılar Sitesi Sarı Ada 1.Blok No: 2 Şehit Kamil/Gaziantep
İncilipınar Mah. Muammer Aksoy Bulvarı Prestij İş Merkezi No: 9-10 Şehit Kamil 27020 Gaziantep Karagöz Mah. Karagöz Cad. No: 2/A Şahinbey/Gaziantep
Yavuz Selim Cad. Zühtiye Ökten İşhanı No: 6 Antakya/Hatay
Savaş Mah. Mareşal Fevzi Çakmak Cad. No: 10 Modern İş Hanı İskenderun/Hatay
Demirel Bulvarı No: 71 Isparta
Kazımdırık Mah. İstiklal Cad. No: 49 Aliağa/İzmir
Fevzi Çakmak Cad. No: 15/A Bornova/İzmir
Gaziosmanpaşa Bulvarı No: 58/1 Çankaya/İzmir
Yeşillik Cad. No: 417 Karabağlar 35400 İzmir Girne Bulvarı No: 152-154/A Karşıyaka/İzmir
1203-3 Sok. No: 1/F Ege Ticaret İş Merkezi Gıda Çarşısı Yenişehir/İzmir
Gaziosmanpaşa Bulvarı No: 15/A Çankaya/İzmir
İsmetpaşa Mahallesi Yeni Hükümet Cad. Beyzade Apt. Altı No: 8/A Merkez/Kahramanmaraş
Bayır Mah. Hürriyet Cad. No: 116 78100 Karabük Cumhuriyet Mah. Nazmi Toker Cad. No: 28 38020 Kayseri Sanayi Mah. Osman Kavuncu Bulvarı No: 120 Kocasinan/Kayseri
Hacıhalil Mah. Körfez Cad. No: 10 Gebze 41400 Kocaeli Zübeyde Hanım Cad. No: 37 Gebze 41400 Kocaeli Karabaş Mah. Cengiz Topel Cad. No: 12 İzmit
Fevzi Çakmak Mah. Kosgeb Cad. Büsan San. Sitesi No: 19 Karatay 42040 Konya
Musalla Bağları Mah. Belh Cad. No: 10 Selçuklu 42060 Konya Pirömer Mah. İnönü Cad. Çimenlik Sok. No: 2/A Ereğli/Konya
Pürçüklü Mah. Aziziye Cad. No: 24 Karatay/Konya
Hüseyin Kahya Mah. Barbaros Hayrettin Cad. No: 22 Kırıkkale
Cumhuriyet Cad. Karakol Sok. Acar Apt. No: 1/2 43030 Kütahya
Hüseyin Bey Mah. Atatürk Cad. No: 26 44100 Malatya (0380) 523 57 80
(0424) 237 37 00 (0372) 322 06 00 (0442) 213 59 10 (0222) 230 82 00 (0342) 238 37 37 (0342) 215 17 79 (0342) 232 65 10 (0326) 225 13 83
(0326) 617 93 10 (0246) 223 11 19
(0232) 617 23 00
(0232) 343 16 16 (0232) 445 37 10 (0232) 254 79 79 (0232) 372 77 20 (0232) 457 93 83 (0232) 484 12 50 (0344) 221 59 00 (0370) 412 66 06 (0352) 221 00 69 (0352) 320 11 40 (0262) 644 07 07 (0262) 645 02 80
(0262) 323 09 00
(0332) 345 46 46 (0332) 238 95 05 (0332) 712 40 40
(0332) 350 08 80 (0318) 225 20 00 (0274) 216 85 85
(0422) 323 31 31 Faks
(0224) 225 14 89
(0224) 211 19 08
(0224) 715 72 75
(0224) 249 45 99
(0224) 367 77 61
(0286) 214 12 09
(0364) 224 24 36
(0258) 241 35 70
(0412) 223 25 50
(0412) 251 98 08
(0380) 524 94 24
(0424) 237 53 53
(0372) 322 18 78
(0442) 213 59 20
(0222) 230 55 47
(0342) 238 37 77
(0342) 215 17 93
(0342) 232 66 72
(0326) 225 26 42
(0326) 613 70 86
(0246) 223 20 75
(0232) 617 23 09
(0232) 343 71 20
(0232) 445 62 21
(0232) 254 11 61
(0232) 372 86 70
(0232) 457 97 96
(0232) 484 12 61
(0344) 221 59 60
(0370) 413 14 74
(0352) 221 29 88
(0352) 320 12 80
(0262) 644 15 05
(0262) 645 02 93
(0262) 323 09 08
(0332) 345 46 55
(0332) 238 95 13
(0332) 712 42 32
(0332) 353 30 80
(0318) 225 26 17
(0274) 216 74 74
(0422) 323 47 77
240
Branches
Branch
Manisa
Manisa Subesi
Akhisar Branch
Mardin Branch
Mersin Branch
Nevşehir Branch
Osmaniye Branch Rize Branch
Samsun Branch
Sivas Branch
Şanlıurfa Branch
Tekirdağ
Çerkezköy Branch
Çorlu Branch
Tekirdağ Branch
Tokat Branch
Trabzon Branch
Uşak Branch
Van Branch
Yalova Branch
Address
1. Anafartalar Mah. Gaziosmanpaşa Cad. No: 36 45010 Manisa
Paşa Mah. Haşim Haşimoğlu Cad. 50. Sok. No: 23 Akhisar/Manisa
13 Mart Mah. Vali Ozan Cad. No: 50 Mardin
Cami Şerif Mah. Uray Cad. No: 58 33060 Mersin
Aksaray Cad. No: 17 50100 Nevşehir
İstiklal Mah. Atatürk Cad. No: 150 Osmaniye
Tevfik İleri Caddesi No: 1 Rize
Kale Mah. Cumhuriyet Cad. No: 14 55030 Samsun Sularbaşı Mah. Afyon Sok. No: 1/A Sivas
Yusufpaşa Mah. Asfaltyol Cad. No: 4 63100 Şanlıurfa Gazi M.Kemal Paşa Mah. Atatürk Cad. Gamze Apt. No: 82 Çerkezköy 59500 Tekirdağ
Cemaliye Mah. Omurtak Cad. No: 236/1 Çorlu 59860 Tekirdağ
Hükümet Cad. No: 142 Tekirdağ
Gaziosmanpaşa Bulvarı Yar Ahmet Mah No: 185 /A Tokat
Kahramanmaraş Cad. Maraş Apt. No: 51 61200 Trabzon İsmet Paşa Cad. No: 3 64100 Uşak Cumhuriyet Cad. (Vali Konağı Karşısı) Sempaş Yanı No: 118/A-B Merkez 65100 Van
Yalı Cad. Gürer İş Merkezi No: 11 Merkez/Yalova
Telefon
(0236) 231 21 00
(0236) 412 11 58
(0482) 212 65 45
(0324) 238 77 10 (0384) 213 05 55 (0328) 812 00 66
(0464) 217 09 82
(0362) 432 51 52 (0346) 225 56 96
(0414) 216 80 80 (0282) 725 37 05 (0282) 653 22 40 (0282) 260 64 90
(0356) 214 07 07
(0462) 321 93 00 (0276) 224 54 56 (0432) 210 23 40
(0226) 813 15 00
Faks
(0236) 232 42 31
(0236) 412 11 28
(0482) 212 65 15
(0324) 238 81 66
(0384) 213 07 35
(0328) 814 86 66
(0464) 217 09 77
(0362) 435 57 07
(0346) 224 25 34
(0414) 216 49 49
(0282) 725 32 26
(0282) 653 31 80
(0282) 260 59 04
(0356) 213 11 50
(0462) 321 94 70
(0276) 224 61 30
(0432) 214 02 90
(0226) 811 59 43
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