Deutsche Bank A.Ş. Annual Report 2014

Transcription

Deutsche Bank
Sustainable
Performance
Integrity
Client
Centricity
Discipline
Innovation
Deutsche Bank A.Ş. Annual Report 2014
Our Values and Beliefs
Partnership
Our Values & Beliefs
Deutsche Bank operates by six core values. Our values show how we bring
our brand to life each and every day.
Integrity
§ We live by the highest standards of integrity in everything we say and do.
§ We will do what is right – not just what is allowed.
§ We communicate openly; we invite, provide and respect challenging views.
Sustainable Performance
§ We drive value for shareholders by putting long-term success over short term gain.
§ We encourage entrepreneurial spirit which responsibly balances risks and returns.
§ We pursue lasting performance by developing, nurturing and investing in the best talent,
and by managing based on merit.
Client Centricity
§ We earn our clients’ trust by placing them at the core of our organisation.
§ We deliver true value by understanding and serving our clients’ needs best.
§ We strive to pursue mutually beneficial client relationships in which the value
created is shared fairly.
Innovation
§ We foster innovation by valuing intellectual curiosity in our people.
§ We enable our clients’ success by constantly seeking suitable solutions to their problems.
§ We continuously improve our processes and platforms by embracing new and better
ways of doing things.
Discipline
§ We protect the firm’s resources by always thinking and acting like owners.
§ We live by the rules and hold ourselves accountable to deliver on our promises – no excuses.
§ We achieve operational excellence by striving to ‘get it right the first time’.
Partnership
§ We build diverse teams to generate better ideas and reach more balanced decisions.
§ We put the common goals of the firm before ‘silo’ loyalty by trusting, respecting and
working with each other.
§ We act as responsible partners with all our stakeholders and regulators,
and in serving the wider interests of society.
Contents
02
Message from the Chairman
and the CEO
1
Introduction
07
07
08
08
08
2
Management and
Corporate Governance
19
22
24
24
27
28
30
31
32
08
09
09
10
History of Deutsche Bank A.Ş.
Financial Highlights
Amendments to the Articles of Association
Extraordinary General Meetings in 2014
Shareholder Structure, Changes during the Year,
Qualified Shares and Management Shares
Associates
Deutsche Bank A.Ş. within the Banking Industry
Research and Development
Operations in 2014
Board of Directors
Senior Management
Independent Auditor
Committees
Information on Dividend Distribution Policy
Human Resources Applications
Related - Party Transactions
Outsourced Services
Corporate Social Responsibility
3
Financial Assessment and
Risk Management
4
37
38
40
40
40
41
41
43
44
45
Report of the Audit Committee
Management Declaration
Audits
Other Information Regarding Corporate Actions
Financial Assessment
Monitoring Targets
Risk Management Policies
Credit Ratings
Summary of Five - Year Financial Highlights
Annual Report Compliance Opinion
Independent Auditors’ Report,
Financial Statements and Disclosures
47
48
52
Independent Auditors’ Report
Unconsolidated Financial Report
Deutsche Bank
Annual Report 2014
Message from the Chairman and the CEO
02
Message from the Chairman
and the CEO
Peter Tils
Chairman of the Board of Directors
Ersin Akyüz
CEO
Dear Shareholders,
We look back on 2014 as a year when overall global economic
growth slightly disappointed. Whilst the US growth momentum
stood out, much-awaited recovery in Europe proved to be fairly
gradual, driving central bank divergence with the Fed ending
quantitative easing as the ECB eased further. In emerging markets,
economic expansion continued in 2014, albeit at a slower pace,
mostly owing to softer activity in China and Latin America. Oil
prices collapsed as supply rose and the USD strengthened, which
added to deflationary pressures across the globe. Despite periodic
volatility spikes, tail risks remained contained, enabling global
markets to rally.
Turkish economy displayed a slight slowdown in 2014. Real GDP
growth is expected to transpire around 2.7% following 4.1%
recorded in 2013. Tight monetary conditions prevalent during most
of the year and stricter macro-prudential stance on consumer loans
together took a toll on domestic absorption. This was, however,
more than compensated by net exports having turned positive on
the back of improved export performance and compressed imports.
Such-rebalancing brought a welcome deceleration in the current
account deficit which shrank to 5.8% as per cent of GDP from 7.9%
a year ago. Inflation diverged further from the Central Bank’s 5%
target and ended the year at 8.2%, after 7.4% in 2013. A severe
drought impacted food prices adversely, while strong pass-through
from earlier currency weakness was also still at play. Central Bank’s
significant tightening late in January eased the pressure on Turkish
Lira, and paved the way for a 175bps reduction in the policy rate
Deutsche Bank
Annual Report 2014
03
to 8.25% through July. Relative currency weakness and elevated
inflation later in the year, however, prompted the Central Bank to
adopt a cautious approach, and the policy rates were kept on hold
in the second half of the year.
Trading environment was extremely challenging during the first
quarter of the year. This was due to the political uncertainty
around the local elections at the end of the quarter. The markets
turned very bullish following the elections and interest rates on
the benchmark 5-year and 10-year Treasury notes were mostly
on a declining trend until the end of the third quarter. The rally
in rates picked up further speed in the last quarter as oil prices
started declining rapidly, as Turkey was seen as a major beneficiary
from lower prices, in terms of growth, inflation and sustainability
of current account deficits. Economic growth slowed down from
4.1% in the first quarter to around 2% during the remaining three
quarters. Consequently, the growth in loan demand remained low
and the lending spreads continued to remain tight.
In this generally favourable environment, our Net Income improved
significantly to TL 80.6mn from TL 2.1mn in 2013. The increase
was due primarily to a significant increase in our Trading income.
However, significant increases in income were also achieved in our
Custody, Lending and Cash Management businesses. Our Balance
Sheet increased from TL 2,360mn to TL 2,922mn. Loans increased
by over 20%, in line with our longer-term objectives. Separately,
we took advantage of the favourable conditions in the reverse-repo
market and maintained increased lending in this market. Despite
the increase in our Balance Sheet, our Capital Adequacy Ratio at
year-end improved to 28.4%, from 24.8% in 2013, thanks to the
significant increase in Net Income. Subject to regulatory approval,
we expect to pay dividends of around TL 69mn, following which
we expect our Capital Adequacy Ratio to be around 25%. We
are confident that we have ample room for further growth in our
balance sheet.
We are very pleased with the broad-based contribution from
our various businesses to this success. As noted above, Trading
business was the major contributor to the turn around to our
results. Our Sales and Coverage platform continued to perform
well to meet the financing and trading demands of our financial
and corporate clients. Thanks to increased Lending volumes, our
interest income was higher. Similarly, our Cash Management
revenues were also significantly higher. Our Custody business
Deutsche Bank
Annual Report 2014
04
revenues were also substantially higher due primarily to
substantially higher interest income on customer balances. Our
Investment Banking Coverage and Our Investment Banking
Coverage and Advisory had a very difficult year as mergers and
acquisition activity in Turkey was very subdued due to the political
uncertainty around the local and presidential elections.
On the Costs side, despite increased volumes and the associated
investments, we have been able to keep our costs under control.
Excluding one-off items, the increases in our personnel costs and
other expenses have been in line with inflation.
In line with our parent, we embarked on a major drive for
strengthening our corporate culture. We believe that a strong
corporate culture, founded on values and beliefs shared by all of
our employees, is essential to the bank’s long-term success. These
Values are: Integrity, Sustainable Performance, Client Centricity,
Innovation, Discipline and Partnership. Together with the associated
Beliefs, these Values should guide our point of view, decisionmaking and behaviour in a continually changing environment and
help the bank select the right course of action – to the benefit of
clients, shareholders, employees and society.
We continue to remain committed to our corporate social
responsibilities. We contributed 5,000 saplings to the renewal of
a forest in Balıkesir following a fire. Separately, we continue our
support for a primary school in a poor part of Istanbul. Our staff
continues to complement these efforts by active involvement with
the students in the school. These investments strengthen the fabric
of the society and help enhance the environment in which we
operate.
Looking ahead into the rest of 2015, the world economy is expected
to grow at a similar pace to 2014. Developed economies continue
to perform better on the back of above-trend expansion in the US
and acceleration in Europe thanks to improving credit conditions,
weaker Euro and cheap oil. On the other hand, the outlook for
emerging economies is slightly less upbeat with Chinese economy
softening further, Russia entering a recession, and the curtailed
growth prospects in oil-producing countries. On the domestic
front, we expect growth to display a slight uptick this year to 3.5%
Deutsche Bank
Annual Report 2014
05
as less tight monetary conditions lead to an improvement in loan
extension, prompting a measured rebound in private consumption.
We expect the current account deficit to improve further, declining
to a little below 5% of GDP thanks to a lower energy bill. Inflation
is likely to decelerate to around 7% for the year. Fiscal policy is
expected to be stable despite Parliamentary elections in June.
Central Bank has already lowered its policy rate by 75bps yearto-date to 7.50%. Further easing will depend on the impact of the
recent weakening of TRY on the inflation going forward. Much will
also depend on Fed’s policy actions on US rates.
We are very conscious of this highly challenging environment. The
trading conditions will be very difficult in the face of the expected
rate normalization cycle in the US. Turkey, along with other
emerging markets, has suffered significant selloff in its currency
but its long-end rates have been comparatively stable, thanks to
the relative stability in US rates. Any selloff in US rates is highly
likely to result in increased rates in Turkey and other emerging
markets. Domestically, the parliamentary elections in June and the
subsequent developments have contributed to a wait-and-see mode
amongst corporates. As a result, economic growth might surprise
on the downside. This might effect our Lending business, as well as
our Custody business as foreign investor flows might slow down.
Further, although we have a large number of mandates in our
pipeline, the M&A environment might be adversely effected. In this
difficult environment, we will strive to be even more conscious of
improving operational efficiencies. Despite these challenges, we are
very confident that we will deliver outstanding service to our clients
and sustainable value to our shareholders.
Peter Tils
Chairman of the
Board of Directors
Ersin Akyüz
CEO
1
Introduction
07
07
08
08
08
08
09
09
10
Amendments to the Articles of Association
Extraordinary General Meetings in 2014
Shareholder Structure, Changes during the Year,
Qualified Shares and Management Shares
Associates
Operations in 2014
Deutsche Bank
Annual Report 2014
01 - Introduction
07
7
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Established as Türk Merchant Bank A.Ş. in 1987.
Renamed as Bankers Trust A.Ş. in 1997.
Continued operations as Deutsche Bank A.Ş. as of 2000 following
Deutsche Bank’s acquisition of Bankers Trust.
Having provided corporate banking services under an investment banking license
until 2004, Deutsche Bank A.Ş. applied to the Banking Regulation and Supervision
Agency (BRSA) for permission to accept deposits in an attempt to expand its
product range.
Obtained permission to accept deposits in October 2004.
Added corporate cash management and custody and settlement services to its
product portfolio in 2005.
The Bank acquired the domestic custody unit of T. Garanti Bankası A.Ş. in 2007 and
became the leader of the custodian banks that keep custody of securities portfolios
of foreign institutional investors in 2014.
Received authorization to participate in Treasury auctions as a market-maker in
2014 as every year since 2005.
Starting from 2010 continued to act as a market maker for TL-USD, TL-EUR and
EUR-USD futures contracts (with cash settlement) on the Turkish Derivatives
Exchange in 2014.
Received factoring and forfeiting licenses in February 2012, in accordance with the
decision taken by the Banking Regulation and Supervision Agency.
The Bank has no branches.
The Trade Registry Number of the Bank is 244378.
The Central Registration System Number (MERSIS) of the Bank is:
0-8760-0487-2200015
Bank's web address: www.db.com.tr
Bank's E-mail address: muhaberat.ist@list.db.com
Bank's Head Office address: Esentepe Mahallesi Büyükdere Caddesi Tekfen Tower
No: 209 K: 17-18 Şişli 34394 Istanbul / Turkey
December 31, 2014
Summary Financial Highlights
(TL 000) Cash and Balances with the Central Bank
Trading Securities
Loans and Receivables
Total Assets Deposits Shareholders’ Equity Interest Income
Operating Profit
533,958
581,682
1,090,757
2,921,847
680,744
507,223
223,716
102,039
Financial Ratios
(%) Capital Adequacy Ratio
Shareholders’ Equity/Assets 28.39
17.36
Off-Balance Sheet Items
(TL 000) Guarantees and Warranties
Commitments
Derivative Financial Instruments Items Held in Custody
213,101
2,774,861
1,502,438
49,239,274
Deutsche Bank
Annual Report 2014
01 - Introduction
Amendments to the Articles of Association, Extraordinary General Meetings in 2014,
Shareholder Structure, Changes during the Year, Qualified Shares and Management Shares,
Associates
08
Amendments to the Articles of
Association
No amendments were made to the Articles of Association of Deutsche Bank A.Ş.
during 2014.
Extraordinary General Meetings
in 2014
No Extraordinary General Meetings were held during 2014. Ordinary General
Meeting of Deutsche Bank A.Ş. was held on March 26, 2014.
Shareholder Structure, Changes
during the Year, Qualified Shares
and Management Shares
All shareholders of Deutsche Bank A.Ş. are Deutsche Bank Group companies.
The Bank holds no privileged shares.
There was no change in the shareholder structure in 2014.
The Bank did not acquire its own shares.
The most recent shareholder structure is presented in the table below.
Chairman and Members of the Board of Directors, Members of the Audit
Committee, CEO and Assistant General Managers do not own any shares in the
Bank.
01.01.2014 - 31.12.2014
Shareholder
Number of Shares
Shares Capital (TL)
Deutsche Bank AG
1,349,999,730
134,999,973 Süddeutsche Vermögensverwaltung GmbH
68 6,8 DB Industrial Holdings GmbH
68 6,8 Nordwestdeutscher Wohnungsbauträger GmbH
67 6,7 DB Capital Markets (Deutschland) GmbH
67 6,7 Total
1,350,000,000 135,000,000
Associates
The Bank does not have any associates, either directly or indirectly.
Share (%)
99,99
<1
<1
<1
<1
100
Deutsche Bank
Annual Report 2014
01 - Introduction
09
Deutsche Bank A.Ş. within the
Banking Industry
Operating in Turkey since 1987, leveraging the strong global banking network of
its parent company Deutsche Bank AG, Deutsche Bank A.Ş. is primarily focused on
corporate banking. Offering its corporate banking services with a workforce of 115
employees, Deutsche Bank A.Ş. is the Istanbul based subsidiary of Deutsche Bank
Group, which has approximately 100,000 employees and EUR 1.718 billion in total
assets (as of December 2014) throughout the world. Deutsche Bank A.Ş. targets the
highest levels of quality in all product and service segments in which it is active, and
strives to be one of the prime relationship banks of each client.
In 2014, the Bank secured a 3% market share in the outright purchases and sales
market for bonds and bills and over-the counter fixed income securities transactions.
The Bank maintained its 2% market share in total foreign currency vs. Turkish lira
transaction volume.
Having started to provide custody services as of 2005, Deutsche Bank A.Ş. has become
an extremely reputable bank, preferred by foreign investors for its custody services.
The bank has a 45% market share among all the custodian banks that keep custody of
securities portfolios of foreign institutional investors.
The bank mediates cash management circulation in domestic and international trade
and provides services and consultancy to clients in Turkey in the fields of short and
medium term trade financing and risk management via its specialist teams. Besides
Conventional Foreign Trade products, the bank has become a reliable partner in its
clients’ banking transactions by providing customized solutions in terms of Trade
Financing products and corporate cash management.
The bank provides consultancy services in preparation of major foreign company
purchase offers and acquisition financing packages and actively works on buying and
selling, capital issuance and financing transactions of various financial institutes. The
bank aims to maintain its pioneering position in the market in 2015 as it did in 2014
through developments in ongoing projects.
Deutsche Bank A.Ş. aims to provide services in line with the priorities and
requirements of its local and multinational customer segment, so as to develop
strategic and longstanding relations with its prominent customers. In doing so, it
takes advantage of Deutsche Bank’s global know-how and maximizes the coordination
within different product groups, thus providing the most effective solutions through
exclusively designed financing techniques and banking services for its clients. Bank’s
target for 2015 will be to reinforce its reputation as a reliable and permanent business
partner by establishing longstanding relations with its clients.
After many years of providing corporate banking services in Turkey under an
investment banking license, Deutsche Bank A.Ş. also began offering commercial
banking services in October 2004 after having been awarded a deposit taking license.
In 2005, a separate unit was established within the Bank to provide settlement and
custody services. Deutsche Bank A.Ş. continuously seeks to enhance the quality and
diversity of service. To this end, the Bank implements system development studies
required by its expanding services and cash management products. Having started
as an extension of its main business line in 2006, these services have continued
effectively in 2014.
Combining its local experience with its main shareholder Deutsche Bank AG’s global
network, expertise and know-how in the areas of public offerings, block sales and
derivative products, Deutsche Bank A.Ş. continues to provide capital markets and
treasury solutions.
Improvements to support the diversified product range and increasing transaction
volume of the bank and applications strengthening our control structure were the
points of focus for us during 2014. In this respect, our organizational structure
was configured based on the new needs, applications were developed and new
investments were made to boost the performance. We will focus on risk controlling,
service management and capacity expansion in 2015. In line with the bank’s strategies,
improvement operations in product development, risk management, hardware and
software consolidation and operational continuity will go on.
Deutsche Bank
Annual Report 2014
01 - Introduction
Operations in 2014
10
Operations in 2014
Deutsche Bank A.Ş. believes that Turkey, which has long stood out among
emerging economies, offers tremendous potential for growth and investment
in the years ahead. Corresponding to this perspective, the Bank is continuing its
expansion into Turkey with a primary focus on corporate banking.
The organization of Deutsche Bank A.Ş. is composed of Markets, Global Transaction
Banking, Corporate Finance, Support Functions and Internal Systems.
Markets
The Markets business consists of Trading Unit.
Trading: This unit conducts the structuring and sales transactions of debt and
money market instruments. It mediates the spot trading and derivatives trading
transactions of financial institutions, insurance companies and corporations in
foreign exchange and TL. The unit also conducts transactions of debt instruments,
treasury bonds, trading of bonds and derivative products. Moreover, it provides
clients with rate of exchange and interest risk management services by pursuing
risk management policies.
Deutsche Bank A.Ş. is a leader in the Turkish capital markets in terms of fixed
income products.
Global Transaction Banking
The Global Transaction Banking consists of three units providing services to
corporations and financial institutions; which are Investor Services, Trade Finance
and Cash Management Corporates, and Cash Management & Trade FIs.
Investor Services: With its Investor Services Unit, established by a highly competent
and experienced team in 2005, Deutsche Bank A.Ş. has become an extremely
reputable bank, preferred by foreign investors for its custody services. The Bank has
a 44% market share among all the custodian banks that keep custody of securities
portfolios of foreign institutional investors.
Deutsche Bank A.Ş. continued to grow by expanding its current market share and
client portfolio in 2014. The Bank maintains its successful intermediary services by
increasing its transaction volume in a number of significant acquisitions, company
takeovers transfers and in stock lending transactions. Unit's leadership especially in
stock lending transactions in the market has led to an increase in both client number
and transaction volumes.
Deutsche Bank A.Ş. Investor Services maintained their ‘TOP RATED’ status,
first granted in 2009, and scored even higher points in the annual customer poll
conducted by the Global Custodian magazine in 2014, as in previous years. In this
way, it has asserted its first class quality of client services.
In 2015, Deutsche Bank A.Ş. plans to boost its market share and capture the leading
position in the market for clearing and custody activities through new products to
be included in its already wide product range and with customized applications
developed for foreign investors.
Deutsche Bank
Annual Report 2014
01 - Introduction
Operations in 2014
11
Executive Committee
From left to right: Hakan Ulutaş, Pınar Çapanoğlu Altuğ, H. Sedat Eratalar, Özge Kutay, Ersin Akyüz, Tjien Gümüşdiş, H. Hüsnü Okvuran,
S. Mert Haracçı, Cenk Esener
Trade Finance and Cash Management Corporates: This unit mediates cash
management circulation in domestic and international trade. Its specialist teams
have been providing services and consultancy to clients in Turkey in the fields of
short and medium term trade financing and risk management. Deutsche Bank A.Ş.
reflects the additional value of 100 years plus experience in more than 70 countries
of Deutsche Bank AG, its main shareholder, to its clients. Besides Conventional
Foreign Trade products, the bank has become a reliable partner in its clients’ banking
transactions. This is achieved by providing customized solutions in terms of Trade
Financing products and corporate cash management.
In Corporate Banking, enhancing the efficiency of resources, and, for this purpose,
setting the necessary targets and attaining them gain more and more importance
with each passing day. Although the competition is becoming fiercer, particularly in
corporate banking as a result of rising interest from foreign capital organizations in
the wake of Turkey’s upgrade to Investment Grade by a leading international rating
agency, as Deutsche Bank A.Ş. Trade Finance and Cash Management Corporate Unit
we develop suitable products which meet the needs of changing conditions, and we
have gradually raised our market share.
Deutsche Bank
Annual Report 2014
01 - Introduction
Operations in 2014
12
Cash Management and Trade Finance, Financial Institutions: As one of the leading
global banks in the field of Cash Management, Deutsche Bank continues to provide
services as one of the solution partners and main correspondents for Turkish
banks. Enjoying this position to provide cash management solutions to banks, the
unit performs US Dollar money transfers through Deutsche Bank Trust Company
Americas, New York; Euro transfers through Deutsche Bank AG, Frankfurt Branch
and Sterling transfers through Deutsche Bank AG, London Branch. Services
provided by the unit include Dollar and Euro based commercial and treasury
money transfers, liquidity management and sales and support services for
related products. While supporting clients with local, regional and global cash
management solutions, the unit aims to provide the most efficient and the best
services through its extensive global branch network.
Having been providing its clients with foreign trade services in more than 40
countries, Deutsche Bank offers solutions for foreign trade products and trade
financing through its experience, knowledge and wide variety of products in order
to maximize the level of its clients’ efficiency in foreign trade transactions. By
taking an active role in the guarantee transactions and in confirmation, financing
and discounting of letters of credit from Turkish financial institutions to those
abroad, the division performs the sales and marketing of similar products used in
the financing of global trade.
Through difficult times in financial markets and the global economy, the Bank has
maintained uninterrupted and consistent support for Financial Institutions. Thus,
it aims to always be the most reliable and preferred business partner of Turkish
banks by continuing to share its Cash Management and Foreign Trade products
with clients, as well as to provide innovative solutions and global experience.
Corporate Finance
Corporate Finance is composed of two units; Investment Banking Coverage &
Advisory; and Capital Markets & Treasury Solutions.
Investment Banking Coverage & Advisory: Investment Banking Coverage &
Advisory provides consultancy services to Turkish companies as well as foreign
companies seeking to invest in Turkey. These consultancy services include
company mergers and acquisitions, public offerings and capital market and
financing products.
In this respect, the Unit within 2014,
• advised Malaysia Airports Holding Berhad ("MAHB") on the acquisition of the
remaining 40% stake in Istanbul Sabiha Gokcen International Airport,
• advised Rönesans Gayrımenkul Yatırım A.Ş. ("RGY") on the sale of 21.4% stake
in RGY to Singapore Sovereign Wealth Fund, GIC through a capital increase,
• advised Turkish groups on bidding for major international assets and
arranging acquisition financing for such bids,
• actively worked on mergers and acquisition, capital issuance, and financing
projects of several financial institutions.
Deutsche Bank
Annual Report 2014
01 - Introduction
Operations in 2014
13
Investment Banking Coverage & Advisory unit currently continues to work on
selected merger and acquisitions, equity offerings and financing projects, and
through developments in ongoing projects aims to maintain its pioneering position
in the market in 2015 as it did in 2014.
Capital Markets & Treasury Solutions: The Unit is divided into three groups; NonFinancial Institutions, Financial Institutions and Corporate Banking, providing
services to corporations and FI’s.
- Non-Financial Institutions
The Non-Financial Corporates group offers Turkish companies, operating both in
Turkey and abroad, access to Deutsche Bank’s global platform and accumulation
of knowledge in the field of structured finance and risk management. By working
in cooperation with the Corporate Coverage, the Bank aims to comprehensively
understand every facet of its clients’ needs. The Bank is then able to efficiently
and rapidly generate appropriate solutions by working with the right teams
within Deutsche Bank.
- Financial Institutions
The FI Group is responsible for developing, marketing and selling products in
order to meet the requirements of all financial institutions, primarily those of
banks, brokerage houses and asset management companies based in Turkey.
It offers a platform to financial institutions for all financial product transactions,
especially exchange and fixed income securities. In addition the group also
offers long-term funding and structured products by tailoring the design of the
products for its clients, allowing them to benefit from the worldwide distribution
network and product know-how of Deutsche Bank. In 2015, the FI group aims to
continue to offer solutions that fully meet the requirements of its clients, to offer
them with global access and products and thus to remain a key strategic partner
for financial institutions.
- Corporate Banking
The Corporate Banking aims to provide services in line with the priorities and
requirements of its local and multinational customer segment, so as to develop
strategic and longstanding relations with its prominent customers. In doing so,
the Group takes advantage of Deutsche Bank’s global know-how and maximizes
the coordination within different product groups, thus providing the most
effective solutions through exclusively designed financing techniques and
banking services for its clients. The Group’s target for 2015 will be to reinforce
its reputation as a reliable and permanent business partner by establishing
longstanding relations with its clients.
Deutsche Bank
Annual Report 2014
01 - Introduction
Operations in 2014
14
Support Functions and Internal Systems
Support Functions and Internal Systems include Human Resources, Risk
Management, Legal, Finance, Compliance and Internal Control, Internal Audit,
Technology and Operations, Corporate Real Estate and Services.
Human Resources: Human Resources Unit acts in accordance with the principle
that its employees are Bank’s most valuable assets, draws its strength from the
employees, and provides equal opportunities with innovative human resources
applications supporting and improving the employees. In addition to a fair wage
structure, which aims to increase loyalty of the employees towards the Bank and
meet their needs under challenging conditions of competition, HR also provides
conditions that will enable the employees to establish their work-life balance. In
order to keep the organisational structure dynamic, the unit provides an efficient
communication and motivation environment where the employees are able
to use their creativity and to express their opinions, and adopts a transparent
management policy that accommodates and embraces different opinions
and knowledge. Human Resources Unit supports professional and personal
development of the employees, reinforces their connection with the Bank and
therefore plays a strategic role in attaining the Bank’s targets with ease. The unit
manages the relevant structures and processes in accordance with the policies
and procedures stipulated in the Laws and regulations. Possible impacts of
legislation amendments to current practices, issues that concern the Bank as a
whole, personnel policies, exercise of rights granted to the personnel, appointment
proposals up to the level of Managing Director, training and social organizations,
etc. are, put into effect based on the resolutions adopted by the Personnel
Committee and, when deemed necessary, upon the approval of the Board of
Directors, and announced to the employees by the Human Resources Unit.
Risk Management: The Risk Management Unit is responsible for Bank-wide
implementation of the standards “regarding the risk-return structure of the Bank’s
cash flows and monitoring, controlling and, when necessary, modifying the nature
and level of the operations” that were devised and put into effect by the Board of
Directors within the framework of the BRSA regulations.
The Risk Management Unit is responsible for understanding risks and conducting
sufficient evaluations before entering a transaction, setting risk management
policies and practice methods based on risk management strategies, ensuring the
application and adaptation of risk management policies and practice methods,
maintaining quantified risks within limits and reporting the risk measurements
and risk monitoring results to the Board of Directors or Board Member responsible
from Internal Systems and senior management, on a regular and timely basis.
Deutsche Bank
Annual Report 2014
01 - Introduction
Operations in 2014
15
Operations Committee
From left to right: Abdullah Kaçmaz, C.Ertunç Ulak, G.Duygu Özcan, Özge Kutay, Ersin Akyüz, Özge Tuğtan, Günce Çakır İldun, Nesrin Akyuz,
Ali Doğrusöz, Ayhan Eryiğit
Legal: The Legal Unit provides legal consultancy services to the business
and support service divisions of Deutsche Bank A.Ş. and performs Corporate
Secretariat functions. It examines the compliance of contracts to which the Bank
is a party, as well as transactions and texts prepared by other divisions of the
Bank with the applicable laws, and expresses its opinions with respect to legal
implications to the divisions. The Legal Unit is also responsible for examining
the Bank’s new projects and recently developed products from a legal point of
view, and where necessary, for offering legally compliance alternatives. The Unit
also serves as the secretariat to Board of Directors, General Assembly, Audit
Committee, Executive Committee and Operations Committee meetings. The Legal
Unit represents the Bank in lawsuits to which the Bank is a party or appoints 3rd
party law firms for this purpose.
In 2015, the Legal Unit aims to continue providing legal consultancy services
related to the finance sector and issues concerning the Bank, to provide legal
support for potential projects, and to conduct the necessary studies in order for the
Bank to be in compliance with the amended legislation.
Deutsche Bank
Annual Report 2014
01 - Introduction
Operations in 2014
16
Finance: The Finance Unit examines the Bank’s financial position through
its daily and monthly reports and informs the Executive Management on the
results. In order to adequately assess the performance of profit centers, the unit
prepares the financial statements for these units on a daily and monthly basis.
The unit is in charge of providing the information flow for the Bank's audit by
the independent auditor and regulatory bodies. The Finance Unit generates new
projects for Executive Management reporting and internal control systems and
supports other related projects, the unit prepares the Bank’s financial statements
and related disclosures in the required format and submits them to entities such
as the Banking Regulation and Supervision Agency, Central Bank of Turkey,
Undersecretariat of Treasury, Capital Markets Board and The Banks Association of
Turkey.
Compliance and Internal Control: Compliance and Internal Control conducts Bank's
compliance and internal control activities. Responsibilities of the unit in terms of
compliance are to ensure compliance of internal by-laws and applications and each
and every contract and similar legal text that may be binding on Deutsche Bank
with the related applicable laws, regulations, ethical principles and widely-accepted
Principles of Corporate Governance. Within this framework, it is responsible
from conducting the necessary research and preparing the necessary reports
regarding the businesses and transactions of the Bank's clients by taking the
relevant laws and regulations, especially the Banking Law no. 5411 and Law no.
5549 on Prevention of Laundering Proceeds of Crime as basis. It acts as a bridge
between business units. The unit provides recommendations about maintaining
the necessary legal compliance and cooperation in relations with the supervisory
and regulatory institutions determined by laws and regulations. The unit also
undertakes to give opinions and recommendations about the necessary issues to
the Board of Directors, Executive Management and business units, in compliance
with the related legislation.
The Compliance and Internal Control Unit is secondarily responsible for the
internal control activities after the unit, which is liable from the operation of all
control systems established within the body of Deutsche Bank A.Ş. in the first
place, primarily the financial and operational systems. The Unit maintains its
activities within the framework of “Compliance and Internal Control By-Law”
confirmed by the Board of directors.
The principle of separation of powers has been established for the necessary
control points within the Bank. The independence of the internal control process
from the functional activity units has been sufficiently assured and tasks and
responsibilities within the corporate structure have been separated on the basis
of function. Thanks to this organizational structure, measures within the internal
control system are implemented independently and objectively with the principle
of the separation of powers. The internal control system is regulated in compliance
with the types and levels of risks emerging in relation with the character and
content of the Bank’s activities.
Deutsche Bank
Annual Report 2014
01 - Introduction
Operations in 2014
17
Internal Audit: The Internal Audit Unit monitors the internal audit structure at all
Deutsche Bank A.Ş. units regularly and independently on behalf of the Board of
Directors. The Unit evaluates the unit’s transactions and practices on the basis of
targets, their compliance with internal/external regulations and their performance
within the framework of risk analysis, and focuses on assisting the Board of
Directors regarding the effectiveness of the corporate management.
The Unit checks that the Bank’s ethical standards have been fully implemented
by the business units. In addition to monitoring the compliance with internal
and external regulations, Internal Audit also conducts dynamic and effective
monitoring of the working environment at all business and support units under a
risk focused approach.
Technology and Operations: Improvements to support the diversified product
range and increasing transaction volume of the Bank and applications
strengthening our control structure were the points of focus for the Technology
and Operations Unit during 2014. In this respect, our Organizational structure
was configured based on the new needs, applications were developed and new
investments were made to boost the performance.
The Technology and Operations Units will focus on risk controlling, service
management and capacity expansion in 2015. In line with the Bank’s and its parent
company’s strategies, improvement operations in Product development, Risk
Management, Hardware and Software Consolidation and Operational Continuity
will go on.
Corporate Real Estate and Services: The Unit is responsible for providing a working
environment compliant with the necessary health and safety conditions in order
to sustain the activities of Deutsche Bank A.Ş. in a productive, safe and efficient
way. The unit is also responsible for the management of critical systems such as
construction, real estate, decoration, rent management, building management,
strategies for working spaces, security systems, office and building maintenance,
generators, UPS and mechanical and electrical systems, as well as conducting
corporate services such as insurance, providing physical archive space, car rental,
couriers and reception. The unit maintains its efforts to create a physical working
environment in compliance with Deutsche Bank's global values and standards in
order to better meet the internal client needs.
2
Management
and Corporate
Governance
19
22
24
24
27
28
30
31
32
Board of Directors
Senior Management
Independent Auditor
Committees
Outsourced Services
Deutsche Bank
Annual Report 2014
02 - Management and Corporate Governance
Board of Directors
19
Board of Directors
1
2
3
4
5
6
7
8
9
Board of Directors
Deutsche Bank
Annual Report 2014
20
Board of Directors
1
Peter Johannes Maria Tils
Chairman of the Board of Directors,
Chief Executive Officer of Central and Eastern Europe Region
Born in 1952, Peter Tils graduated from the University of Cologne with an MBA. He
has more than 37 years of experience in banking. Mr. Tils joined Deutsche Bank
AG in 1977 and has been serving as the Chief Executive Officer for the Central
and Eastern Europe Region at Deutsche Bank in Frankfurt since 2005. Tils was
appointed as the Chairman of the Board of Directors of Deutsche Bank A.Ş. on
November 21, 2012.
2
Ersin Akyüz
Member of the Board of Directors,
CEO
Born in 1961, Mr. Akyüz has a Bachelor’s and Master’s degree in Economics from
the London School of Economics in addition to a Master’s degree in Business
Administration from the University of Chicago. Assuming various positions both in
Turkey and abroad in his 26 - year banking career, Mr. Akyüz joined Deutsche Bank
A.Ş. in February 2008 as the CEO and Board Member.
3
Tijen Gümüşdiş
Member of the Board of Directors
Deutsche Bank AG London, Markets, Head of Turkey Trading and CCE Rates,
Managing Director
Born in 1965, Gümüşdiş holds a double major in Business Administration and
Economy from Boğaziçi University. Gümüşdiş has 23 years of banking experience
and she joined Deutsche Bank in 2007. Gümüşdiş works as Managing Director
responsible from Turkey Trading and CCE Rates in Deutsche Bank AG London
Branch and acts as Board Member of Deutsche Bank A.Ş. as of January 2014.
4
Kaya Didman
Vice Chairman of the Board of Directors,
Chairman of Audit Committee
Born in 1962, Mr. Didman is a graduate of Boğaziçi University, Department of
Business Administration. Mr. Didman held senior positions in companies such
as Türk Ekonomi Bank, Baring Securities (London) and Morgan Stanley & Co. in
London. Appointed to the Board of Directors at Deutsche Bank A.Ş. in June 2007,
Mr. Didman has served as the Audit Committee Chairman since March 2008.
5
Hamit Sedat Eratalar
Member of the Board of Directors Responsible from Internal Systems
Born in 1952, Mr. Eratalar is a graduate of Ankara University, Department of
Economics and Public Finance. He worked as a partner at Arthur Andersen
between 1981 and 2001 and served as a founding partner at Eratalar Management
Consulting between 2001 and 2008. Serving on the Board of Directors at Deutsche
Bank A.Ş. since August 2001.
Board of Directors
Deutsche Bank
Annual Report 2014
21
6
Marco Kistner
Born in 1964, Marco Kistner graduated with a degree in Banking Management
from the University of Frankfurt. With 31 years of banking experience, Mr. Kistner
has been working for Deutsche Bank AG since 1984. Currently serving as the
Global Director of Emerging Markets Credit Risk Management, Mr. Kistner was
appointed as a member of Board of Directors of Deutsche Bank A.Ş. in September
2012.
7
Satvinder Singh
Born in 1970, Satvinder Singh graduated with an MBA from the University of
Durham. Having worked for HSBC and Citibank before joining Deutsche Bank AG
in 2011, Mr. Singh is the Global Director of Direct Securities Services and Cash
Management FI. Mr. Singh was appointed as a member of the Board of Directors
of Deutsche Bank A.Ş. in July 2012.
8
Özge Kutay
Member of the Board of Directors responsible from Financial Reporting
Chief Operating Officer
Born in 1970, Ms. Kutay is a graduate of the Faculty of Business Administration at
Istanbul University. Starting her career at the Turkey Office of KPMG in 1993, Ms.
Kutay has 18 years of experience in banking. Having been employed by Deutsche
Bank A.Ş. since 1998, she served as an Assistant General Manager between 2001
and 2012 before being appointed as a member of the Board of Directors in October
2012.
9
Paul Antony Geradine
Member of the Board of Directors, Member of the Audit Committee
Born in 1960, Paul Geradine holds a Master’s degree in Modern History from
the University of Oxford. Having worked for UBS AG and HSBC before joining
Deutsche Bank AG in 2012, Mr. Geradine is currently responsible for Deutsche
Bank AG’s Markets Compliance Unit in the Europe, the Middle East and Africa
regions. Mr. Geradine was appointed as a member of the Board of Directors and a
member of the Audit Committee of Deutsche Bank A.Ş. in December 2012.
None of the members of the Board of Directors is involved in transactions with
the Bank either in their own capacity or on behalf of third persons or engaged in
operations considered under the prohibition of competition.
Ahmet Arınç's resignation from Board of Directors was accepted with the Board of
Directors resolution dated January 16, 2014 and Tijen Gümüşdiş was appointed to
replace him. Her appointment was approved with the Ordinary General Assembly
resolution dated March 26, 2014.
Deutsche Bank
Annual Report 2014
Senior Management
22
Senior Management
Ersin Akyüz, Member of the Board of Directors, CEO:
Born in 1961, Mr. Akyüz has a Bachelor’s and Master’s degree in Economics from
the London School of Economics in addition to a Master’s degree in Business
Administration from the University of Chicago. Assuming various positions both in
Turkey and abroad in his 26-year banking career, Mr. Akyüz joined Deutsche Bank
A.Ş. in February 2008 as the CEO and Member of the Board of Directors.
Özge Kutay, Member of the Board of Directors responsible from Financial Reporting
Chief Operating Officer:
Born in 1970, Ms. Kutay is a graduate of the Faculty of Business Administration at
Istanbul University. Starting her career at the Turkey Office of KPMG in 1993, Ms.
Kutay has 18 years of experience in banking. Having been employed by Deutsche
Bank A.Ş. since 1998, she served as an Assistant General Manager between 2001 and
2012 before being appointed as a member of the Board of Directors in October 2012.
Ali Doğrusöz, Assistant General Manager - Technology and Operations:
Born in 1963, Mr. Doğrusöz graduated from North Carolina State University,
Department of Mechanical Engineering and received a master’s degree in Mechanical
Engineering from Middle East Technical University. With 26 years of professional
experience, Mr. Doğrusöz has been working at Deutsche Bank A.Ş. as the Assistant
General Manager since 2002.
Süleyman Mert Haracçı, Assistant General Manager - Markets:
Born in 1971, Mr. Haracçı graduated with both undergraduate and master’s degrees
from Marmara University, Department of Finance. Serving in the banking sector since
1996, Mr. Haracçı joined Deutsche Bank A.Ş. in 2000. He was appointed Assistant
General Manager in 2009.
Hakan Ulutaş, Assistant General Manager - Global Transaction Banking, Investor
Services:
Born in 1965, Mr. Ulutaş is a graduate of Istanbul University, Department of Business
Administration and holds a master’s degree in Business Administration from
Marmara University as well as a master’s degree in Management from North Carolina
State University. Mr. Ulutaş spent 22 years of his 25-year professional career in the
banking sector. Hakan Ulutaş has been with Deutsche Bank A.Ş. since 2004. Ulutaş
was appointed as the Assistant General Manager in October 2012.
Cenk Esener, Assistant General Manager - Global Transaction Banking, Trade Finance
and Cash Management Corporates:
Born in 1970, Mr. Esener graduated from Eastern Mediterranean University, in the
Department of Economics. Having served for 17 years in similar positions in various
banks, he joined Deutsche Bank A.Ş. in August 2009, and was appointed as Assistant
General Manager in October 2012.
Hüseyin Hüsnü Okvuran, Managing Director - Corporate Finance, Head of Turkish
Investment Banking Coverage and Advisory and Head of CEEMEA FIG:
Born in 1972, Mr. Okvuran graduated with a Bachelor’s degree from the Faculty of
International Relations and Economics at Yale University. After undertaking various
positions in the investment-banking sector abroad throughout his 21-year banking
career, Okvuran joined Deutsche Bank A.Ş. in 2011. Okvuran heads Turkish IBC&A
and FIG in CEEMEA.
Pınar Çapanoğlu Altuğ, Director - Global Transaction Banking,
Cash Management and Trade Finance:
Born in 1977, Mrs. Çapanoğlu graduated from the Middle East Technical University
with a degree from the Department of Economics. Serving in the banking sector since
1999, Mrs. Çapanoğlu joined Deutsche Bank A.Ş. in 2008.
Deutsche Bank
Annual Report 2014
Senior Management
23
Ali Cem Cansu, Director - Corporate Finance,
Capital Markets and Treasury Solutions, Corporate Banking:
Born in 1972, Mr. Cansu graduated from the Department of Political Science and
Public Administration in Middle East Technical University Administrative Sciences.
Mr. Cansu holds an Executive MBA degree from Koç University from 2007 and has a
total of 18 years of banking experience mainly in the fields of Corporate Banking and
Trade Financing. He has been providing services for Deutsche Bank A.Ş. since March
2010.
Abidin Orhan Özalp, Director - Corporate Finance, Capital Markets and Treasury
Solutions, Financial Institutions:
Born in 1982, Mr. Özalp graduated with a Bachelor’s degree from the Economics and
Business Administration Departments at Koç University. Having worked for Deutsche
Bank A.Ş. since 2006, Özalp has been serving as the Manager in charge of Financial
Institutions since 2011.
Abdullah Kaçmaz, Vice President – Internal Audit:
Born in 1980, Kaçmaz graduated from Istanbul University, Department of Economics.
Kaçmaz started his banking career in 2002 and joined Deutsche Bank A.Ş. in 2011.
Kaçmaz holds CIA (Certified Internal Auditor), CISA (Certified Information Systems
Auditor), CRMA (Certification in Risk Management Assurance) and CRISC (Certified in
Risk and Information Systems Control) certificates. Kaçmaz was appointed as Head of
Internal Audit of Deutsche Bank A.Ş. on November 17, 2014.
Özge Tuğtan, Vice President – Compliance and Internal Control:
Born in 1979, Özge Tuğtan graduated from Boğaziçi University, Department of
Political Science and International Relations, and holds an LL.M in business law.
Tuğtan started her banking career in 2001 and joined Deutsche Bank in 2006. Tuğtan
was appointed as Head of Compliance and Internal Control and Compliance Officer of
Deutsche Bank A.Ş. on October 16, 2014.
Cenk Ertunç Ulak, Director - Risk Management:
Born in 1976, Ulak holds a Bachelors degree in Management from Boğaziçi University
and a Masters in Management from Koç University. Working in the banking sector
since 1999, Ulak joined Deutsche Bank A.Ş. in 2011.
Günce Çakır İldun, Director - Legal:
Born in 1977, Mrs. İldun is a graduate of Ankara University, Faculty of Law and holds
a Master of Laws (LL.M.) degree from State University of New York, Buffalo. Günce
Çakır İldun has 15 years of professional experience, 14 of which were in the banking
sector. Mrs. İldun has been with Deutsche Bank A.Ş. since December 2006.
Ayhan Eryiğit, Vice President - Human Resources:
Born in 1972, Eryiğit holds an undergraduate degree in business administration
from Istanbul University and an MBA from Yeditepe University. Eryiğit started his
professional career in 1996 and has been working in human resources field of the
banking sector since 1998. Eryiğit joined Deutsche Bank A.Ş. in 2013.
Gonca Duygu Özcan, Vice President - Global Logistic Services:
Born in 1972, Mrs. Özcan is a graduate of Istanbul Technical University, Department
of Architecture and holds an MBA from Istanbul Bilgi University/Manchester Business
School. She has 22 years of professional experience, 19 of which are in the banking
sector. Mrs. Özcan joined Deutsche Bank A.Ş. in 2006.
Nesrin Akyüz, Vice President - Finance:
Born in 1975, Nesrin Akyüz graduated from the Middle East Technical University with
a degree from the Department of Business Administration. Having gained auditing
experience in various banks since 1997, Akyüz joined Deutsche Bank A.Ş. in 2006.
Deutsche Bank
Annual Report 2014
Independent Auditor
Committees
24
Independent Auditor
During the Ordinary General Assembly of Deutsche Bank A.Ş. held on March 26,
2014, it was resolved that Akis Bağımsız Denetim ve Serbest Muhasebeci Mali
Müşavirlik A.Ş., selected as the independent auditor for 3 years on the Ordinary
General Assembly on March 28, 2013 for a period of 3 years would continue to act
as the independent auditor.
Committees
Audit Committee
Kaya Didman, Chairman
Paul Antony Geradine, Member
The Audit Committee was established on October 31, 2006, pursuant to the Board
of Directors Resolution No. 48/6. The Audit Committee convened 19 times during
the 2014 fiscal year.
Assets and Liabilities Committee (ALCO)
Ersin Akyüz, Chairman
Özge Kutay, Member
Cenk Esener, Member
Hakan Ulutaş, Member
Tijen Gümüşdiş, Member
S. Mert Haracçı, Member
Joachim Bartsch, Member
Cenk Ertunç Ulak, Member
Nesrin Akyüz, Member
The ALCO is responsible from analyzing the Bank's future capital requirements by
overseeing the structure of the Bank's assets and liabilities, and evaluating riskbearing assets, liquidity and market risk. The ALCO convenes quarterly under the
presidency of the Bank’s CEO. During the 2014 fiscal year, all committee meetings
were attended by all members either in person or via teleconferencing.
Executive Committee (EXCO)
Özge Kutay, Member
Cenk Esener, Member
Pınar Çapanoğlu Altuğ, Member
H. Sedat Eratalar, Member
H. Hüsnü Okvuran, Member
The Executive Committee meets once a month for a number of purposes including
Deutsche Bank's global strategies to be followed in Turkey, generating ideas
for the mutual development of coordination and new business ideas among
the executive units established in Turkey, in addition to exploring cross-selling
opportunities, coordination with the infrastructure units and assessing any risks
regarding the reputation of Deutsche Bank’s franchise.
Deutsche Bank
Annual Report 2014
Committees
25
Operations Committee
Özge Kutay, Chairman
Ali Doğrusöz, Member
Özge Tuğtan, Member
Abdullah Kaçmaz, Member
G. Duygu Özcan, Member
Ayhan Eryiğit, Member
Günce Çakır İldun, Member
Cenk Ertunç Ulak, Member
Nesrin Akyüz, Member
The Operations Committee meets on a weekly basis. The Committee is a platform
where all Operations, Support and Control Units discuss the developments,
changes and problems regarding the operations of the Bank, produce solutions
and organize the effective utilization and allocation of resources.
Personnel Committee
Özge Kutay, Member
Ayhan Eryiğit, Member
Ali Doğrusöz, Member
Cenk Esener, Member
H. Hüsnü Okvuran, Member
The Personnel Committee is responsible for setting up the necessary platforms for
establishing, implementing, discussing and modifying personnel policies to reflect
any regulatory amendments having an impact on Bank's personnel; evaluating
promotion recommendations up to the Managing Director level; organizing
training and development tasks that have Bank-wide relevance; and implementing
the benefits to be provided to the personnel. The Committee meets twice a year
or when deemed necessary by the Committee Chairman or the Human Resources
Unit. Human Resources represent units that are not self-represented in Committee
meetings.
Reputational Risk Committee
Tijen Gumusdiş, Member
Özge Kutay, Member
Özge Tuğtan, Member
Sancar Tomruk, Member
Cenk Esener, Member
Günce Çakır İldun, Member
Clients, transactions and other matters that are deemed to be of potential risk
to the Bank’s reputation are assessed at the Reputational Risk Committee. The
Reputational Risk Committee offers recommendations to the related units on
whether the Bank should accept the transactions or clients under consideration.
The Committee meets under the presidency of the CEO when deemed necessary.
The Compliance and Internal Control Director undertakes the duty of Secretary of
the Committee.
Deutsche Bank
Annual Report 2014
Committees
26
Credit Committee
Özge Kutay, Member
The Credit Committee was established to allocate credits under the authority
delegated to the committee by the Board of Directors’ decision No. 84 dated
December 13, 2010. The Committee takes loan decisions within the limits
determined for itself, and by determining the allocation conditions. The Credit
Committee convenes once a week or when deemed necessary.
Risk Management Meetings
Weekly meetings on “Market Risk” are held upon participation of the Board Member
responsible from Internal Systems, Head of Markets Unit and Head of Deutsche Bank
A.Ş. Risk Management Unit. If it is needed, General Manager is also invited to these
meetings.
The objective of these meetings is to review the developments in the economy, (FX
rates, Interest Rates etc.) discuss the position of the bank in terms of Government
Bond portfolio and bank’s FX position, (if any) and check whether the bank is within
the Bank Limits for Market Risk (like PV01, the effect of 1 basis change in interest rates
to the Bank’s P/L). Stress test results are also discussed in these meetings before they
are submitted to the Board of Directors for approval.
Monthly Risk Management meetings where Market Risk, Operational Risk and Credit
Risk related matters are discussed are also held. Board Member responsible from
Internal Systems, COO, Head of Markets Unit, Head of Internal Control and Head
of Deutsche Bank A.Ş. Risk Management Unit participate in these meetings. If it is
needed, General Manager is also invited to these meetings.
The objective of these meetings is to review the developments in the economy, to
discuss all kinds of credit, market or operational risk related matter and to check
whether the bank is within the Bank Limits. Results of the stress test regarding credit,
market and operational risk are also discussed in these meetings before they are
submitted to the Board of Directors for approval.
Participation of Board Members and Committee Members in Meetings
The Board of Directors meets at least once a month in accordance with the Bank’s
Articles of Association and governing legislation to oversee matters related to the
Bank and to make decisions (within the scope of its duties and responsibilities). When
deemed necessary, the Chairman of the Board of Directors also calls for meetings.
During 2014, members participated in Board meetings regularly, conforming to the
criteria for a quorum to convene and make decisions.
Deutsche Bank
Annual Report 2014
Committees
27
The Audit Committee meets at least once a month. In principle, Committee
members participate in all meetings. However, in the event that they are not
present at the Bank, due to business travel arrangements or other reasons, they
participate through teleconferencing to present their opinions and suggestions
regarding agenda items. In 2014, the Committee and Council Members participated
in Committee meetings regularly, conforming to the criteria to form a quorum to
convene and arrive at decisions.
Transactions conducted by Members of the Board of Directors with
the Bank
Pursuant to the permission granted by the Bank's General Assembly, none of
the members of the Board of Directors is involved in transactions with the Bank
either in their own capacity or on behalf of third persons or engaged in operations
considered under the prohibition of competition.
Financial Benefits of the Senior Executives
In the current period, the total benefits allocated to senior executives such as
Chairman of the Board of Directors, members of the Board of Directors, the CEO
and the Assistant General Managers amounting to TL 20,340 thousands and
expenses such as the transportation and accommodation of senior executives
amounting to TL 490 thousands.
Information on Dividend
Distribution Policy
The Bank has adopted as its dividend distribution policy to distribute all of its
profit available for distribution to its shareholders by receiving the necessary
BRSA approval, provided that there are no unfavorable conditions prevalent in
the national and/or global economic conditions and Deutsche Bank's total equity
adequacy ratio is at the target level.
The allocation and the distribution of the net profit are decided at the Deutsche
Bank A.Ş. shareholders’ Annual General Assembly. Since the Annual General
Assembly concerning the 2014 financial year had not been held as of the date of
this Report, no decision has yet been taken on the distribution of dividends.
In the Bank’s Annual General Assembly held on March 26, 2014; it was resolved
that out of the TL 2.087 thousands net profit generated during the year that ended
on December 31, 2013; TL 268 thousands would be distributed as dividend as per
the permission received from the BRSA on March 25, 2014, TL 14 thousands would
be allocated to legal reserves; whereas, TL 1.805 thousands from deferred tax
assets would be allocated to Extraordinary Reserves. Dividend payment was made
on April 30, 2014.
Deutsche Bank
Annual Report 2014
28
Recruitment: Employing the right persons with the right qualifications, who will
apply Bank’s strategy, adopt and appropriate Deutsche Bank’s corporate culture,
at the right positions is the basic principle underlying the recruitment policy.
Supervisors, who are responsible from execution of their unit’s activities in line
with the applicable legislation, should have sufficient expertise in their unit’s area
of activity and employees of each unit should have the qualifications their duties,
authorities and responsibilities require. It is essential that recruitment processes
and applications be based on objective criteria and executed in accordance with
the principle of equal opportunity.
Career Management: The Bank provides various internal career development
opportunities to its employees including internal recruitment, appointment,
promotion, rotation and international assignments in accordance with DB Group’s
strategy and business requirements. International assignments are important for
the Bank because of the experience they bring to the employees. Employees are
given the chance to have access to global opportunities related to the unit in which
they are currently employed and to apply to positions suitable for themselves. In
the short and long-term assignments, it is aimed to ensure that employees are
employed in the right place, at the right time and that human resource is used
efficiently. Professional knowledge, skills and sense of responsibility of employees,
who exceed the expectations with their high performance, make them candidates
for higher positions.
Performance Management: Targets are assigned to each employee based on
their duties and responsibilities, Bank’s strategies, aims and values. It is essential
that performance criteria be established so as not to give rise to any conflicts of
interest. After the targets are communicated with the employees, their strenghts
as well as weaknesses are observed during the assessment process. After selfassessment of the employee is taken in light of the targets assigned, performance
management continues with feedbacks received from supervisors. Results of
performance assessment provide data for career planning and a basis to determine
training and development needs and remuneration. Performance of internal
systems personnel are assessed independent from the performance of executive
units they control.
Remuneration and Benefits: Remuneration and benefits policy of the Bank is
based on establishing a working environment in accordance with the general
applications of the Bank and principles that foresee fair and balanced remuneration
based on work and performance, in parallel to the remuneration data unique to
the sector, which has the ability to compete in the labour market; rewards high
performance; encourages success and is compatible with globally-acknowledged
values. Payments made to employees are associated not only with the short-term
performance of the Bank such as profit or revenue, but also determined so as to
have a positive impact on the corporate values and be in harmony with objective
criteria. Salaries are reviewed based on criteria such as market dynamics, medium
and long term requirements, performance of the Bank and its employees, and
revised when deemed fit.
Deutsche Bank
Annual Report 2014
29
Training and Development: As of the first day of their employment, Bank
employees are expected to complete training sessions on Bank’s corporate culture,
general compliance rules and compliance and risk rules unique to the Bank within
1 month.
Training requirements of the employees are determined in accordance with
performance assessments, changing legislation and needs, in cooperation with
their supervisors. Deutsche Bank employees, in addition to the locally executed
training programs, also make use of the international opportunities and experience
provided by Deutsche Bank Group. The Bank considers development of its
employees in the international arena important; therefore, training sessions
contributing to personal development of the employees are also provided.
With a central internet based training management system, all training-related
applications are consolidated and all employees have been provided with access
with personal passwords.
“Diversity Week at Work” was held at November 10-14, 2014 with activities below:
•
•
•
•
•
Female employees’ hour of chat with EXCO Members
“Diversity at Work” Questionnaire
Film screening “Secrets of the Sexes”
Seminar entitled “Diversity means Innovation”
Cuisines of Different Cultures meeting
As of December 31, 2014, Deutsche Bank A.Ş. had 115 employees and Personnel
Transfer Rate during 2014 was 10.4%.
67% of our employees are university graduates, 30% hold Masters and/or PhD
degrees and 3% are high school graduates.
Deutsche Bank
Annual Report 2014
30
Within the scope of its activities, the Bank enters into various transactions with
Group companies. These transactions are conducted at market prices and for fully
commercial purposes. The resulting profit/loss is reflected in the income statement.
The related party transactions of Deutsche Bank A.Ş. are reported in detail in the
notes to the financial statements included in this annual report.
The Bank did not take part in any legal transactions with the controlling Company
or with any party related to the controlling Company and/or with the direction of
the controlling Company for the benefit of the controlling Company or its related
parties. Since banking regulations and market conditions are taken into account
as far as the relations with the Group companies are concerned, measures are
neither taken nor specifically avoided to be taken for the benefit of the controlling
Company or its related parties in the past fiscal year.
Deutsche Bank
Annual Report 2014
Outsourced Services
31
Outsourced Services
The business lines and names of the entities that we have procured support
services from in 2014 are listed below pursuant to Regulation on Bank's
Procurement of Support Services.
Outsourcing
Companies
Business Lines of
Outsourced Services
Explanation of
the Service
Securverdi Güvenlik
Security
Security services in the office,
Hizmetleri A.Ş.
building and their extensions,
transportation of cash and securities
Akbasım Matbaacılık ve
Operations
The secure and timely printing of
Ticaret Ltd. Şti.
check books in accordance with legal requirements as to form
JCI
Correspondence
Correspondence Services
BİS Çözüm Bigisayar ve Information Systems
Main Banking System
Entegrasyon Hiz. ve Tic. A.Ş.
Global Bilişim Bilgisayar Yazılım
Information Systems
Technical support and maintenanceDanışmanlık San. ve Tic. Ltd. Şti.
EFT/EMKT web interface development
and maintenance
Dataassist Bilgi Teknolojileri A.Ş.
Human Resources
Payroll Services
Manpower İnsan Kaynakları Ltd. Şti.
Human Resources
Human Resources Services
Deutsche Bank AG
Information Systems
Technical support and maintenanceSMARAGD
suspicious activities
Deutsche Bank AG
Information Systems
Technical support and maintenance
Message Broker-Swift interface
Deutsche Bank AG
Information Systems
Technical support and maintenance Support services regarding send/receive procedures of MNT - Swift Messages
BT Bilişim Hizmetleri A.Ş.
Information Systems
Location supply and all infrastructure services for Disaster Recovery Site
Deutsche Bank AG
Operations
Operational support services within the context of Hotscan - Embargo
filtering practices
Deutsche Bank AG
Information Systems
Technical support and maintenance Hotscan - Embargo filtering practices
Deutsche Bank AG
Information Systems Technical support and maintenance - SSR Reconciliation practises - Technical support
and maintenance - ID-Management Management of User Accounts
Deutsche Bank AG
Information Systems
Technical support and maintenance -
Active Directory - ID Management
Deutsche Bank AG
Information Systems
Technical support and maintenance Network Support
Deutsche Bank AG
Information Systems Technical support and maintenance - DAP
Deutsche Bank DBOI Operational Proceedings
Client Information Services
Global Services Pvt Ltd Platin S.M.M.M. Ltd. Şti.
Operational Proceedings
Data entry and filing services
HCL Technologies Ltd.
Information Systems
Incident management, Problem
management, Hardware installations,
End user services, Remote connection services, Service desk services
Deutsche Bank
Annual Report 2014
32
Deutsche Bank A.Ş. considers corporate social responsibility to be an area of
importance and priority. The Bank takes a highly sensitive approach to the
production of social responsibility projects and the support of existing projects.
Deutsche Bank A.Ş. is aware of the fact that social responsibility is as important as
providing customer satisfaction, employee motivation and a healthy, efficient and
high-quality working environment.
Deutsche Bank continues to be a bridge between Germany and Turkey in
terms of developing economic, social and cultural relations:
Deutsche Bank pays great attention to the development of economic, social and
cultural relations between Germany and Turkey. In order to contribute to these
long-running relations between the two countries, the Bank works diligently on the
development of economic, social and cultural projects.
Bank’s parent company, Deutsche Bank AG has been organizing the traditional
annual “Incentive Tour for Top GMC Clients” meeting for the last thirteen years
for the senior managers of its prominent medium scale corporate clients. Due to
the importance that the Bank accords to the development of social and cultural
relations between Germany and Turkey, this meeting has taken place in Istanbul
four times over this period of thirteen years. Furthermore, the “Deutsche Bank
European Advisory Board Meeting” was held in Turkey. Those who attended
the meetings organized in Istanbul with their families gained the opportunity to
get to know the city’s historical, cultural and natural beauties and enrich their
impressions of Turkey.
The "1st Turkish-German Investment and Cooperation Conference" was organized
in 2010 in Berlin, with Deutsche Bank as the lead sponsor in cooperation with
the Foreign Economic Relations Board (DEIK), the Turkish-German Business
Council and participants including Turkish and German government officials,
and representatives of the business world and media. The Conference proved a
success, and the "2nd Turkish-German Investment and Cooperation Conference"
was held in Berlin in coordination with the DEIK Turkish-German Business Council
in 2011. These relations continued to strengthen in 2014 as well.
Deutsche Bank will continue its studies on developing economic, social and
cultural relations between Germany and Turkey.
Deutsche Bank considers popularizing and developing environmental
protection awareness, protecting greenery and leaving a green world to
the future generations as its areas of utmost priority:
With the project launched in order to popularize and develop environmental
protection awareness in 2010, like every year, Deutsche Bank employees were
given a tree sapling every year on their birthdays via the Turkish Foundation for
Combating Soil Erosion, for Reforestation and for Protection of Natural Habitats
(TEMA) in 2014.
Deutsche Bank
Annual Report 2014
33
Deutsche Bank Memorial Forest Project:
Deutsche Bank Memorial Forest was established on TEMA (The Turkish Foundation
for Combating Soil Erosion, for Reforestation and the Protection of Natural
Habitats) Foundation's Kepsut Memorial Forest, a forest land damaged during
a fire in 2013 and located near the Sarıçayır Village, south of the District Kepsut
of the County Balıkesir, within the jurisdiction of Kepsut Directorate of Forestry
under Balıkesir Department of Forestry by donating 5000 saplings. The forest field
is approximately 250 meters above the sea level and has dip slopes facing every
direction. Saplings were planted on 430 hectares of the burnt field in cooperation
with Balıkesir Department of Forestry with contributions from the donators of
TEMA Foundation within the scope of TEMA Foundation Memorial Forests Project.
Saplings of Calabrian Pine, Black Pine, European Nut Pine, Cypress, Locust, etc.
were planted with contributions from the TEMA Foundation. Maintenance and
preservation efforts of the field continue.
We celebrated New Year by giving planting saplings on behalf of our
business partners and employees in Deutsche Bank Memorial Forest:
In order to provide support for the combat of the TEMA Foundation against
soil erosion and desertification, this year, we celebrated New Year by donating
saplings to Deutsche Bank Memorial Forest on behalf of our business partners and
employees.
Deutsche Bank
Annual Report 2014
34
Sait Taşcıoğlu Primary School Project:
The “Sait Taşçıoğlu Primary School” project has been ongoing since
2010. As part of the project, negotiations were conducted with officials
to determine the needs of the school, located in the village of Zerzevatçı
in Istanbul’s Beykoz district, and its pupils in 2014. As part of the Project,
which was organized by Deutsche Bank employees, various educational
games and events were organized to provide contribution to personal
development of the pupils of the school on the 23rd April National
Sovereignty and Children’s Day. Moreover, in order to promote reading,
Deutsche Bank employees donated books to the school.
Van Earthquake Project:
In order to heal the wounds of those earthquake victims left homeless
by the Van earthquake which struck in October 2011, Deutsche Bank
allocated a budget of 100,000 Euros to construct container homes and
provide the necessary furnishings. Visits were organised for families
living in prefabricated towns and the necessary help was provided after
ascertaining their needs. Moreover, Deutsche Bank provided scholarships
to 15 primary school pupils on the recommendation of the Van
Governorship Welfare and Solidarity Foundation during the school years
of 2012-2014. Various gifts were sent to these school pupils on the 23rd
April National Sovereignty and Children’s Day.
Culture and Arts:
Deutsche Bank believes in the universality of art, and will continue to
closely follow and support young artists around the world:
In order to encourage creativity and innovation, Deutsche Bank has been
supporting promising young artists all over the world in the fields of
painting and music for 33 years. The starting point of the Deutsche Bank
collection, the largest and most important corporate art collection in the
world, can be considered as its decisiveness and sensibility in contributing
to the development of art. The corporate collection, expanding since 1945,
consists of paintings and photographs. Deutsche Bank has organized
the exhibitions, Habersiz Buluşma (Blind Date) and Joseph Beuys ve
Öğrencileri (Joseph Beuys and His Students) in Istanbul in previous years.
As the sponsor of the ‘1st Contemporary Istanbul and Edge of Arabia
Istanbul: Transition’ exhibition, Deutsche Bank highlighted the importance
it attributes to Istanbul as a bridge between civilizations.
Berlin Philharmonic Orchestra:
Bank’s parent company, Deutsche Bank AG has supported the Berlin
Philharmonic Orchestra since 1989, which was established as an
autonomous assemblage in 1882 and has been accepted as the most
noteworthy musical constitution of our era. In 2002, Deutsche Bank
was the exclusive partner and focused on the education of the talented
youngsters. Deutsche Bank also extended an opportunity to open a
digital concert hall as an innovative initiation in 2009 which would
enable the orchestra to reach more people through the Internet. For the
first time in its history, the Berlin Philharmonic Orchestra performed a
concert in Istanbul as part of the Istanbul Culture and Art Foundation’s
40th anniversary events in September 2012. Furthermore, the orchestra
performed a concert as part of the 26th International Izmir Fest, which was
organized by the Izmir Culture, Art and Education Foundation (İKSEV).
Deutsche Bank
Annual Report 2014
35
We encourage individuals to take responsibility for their own cities:
Through the “Urban Age” conference and project competition, Deutsche
Bank’s forum for examining the future of metropolitan cities around
the world that took place in Istanbul in 2009, organized by the Alfred
Herrhausen Society and the London School of Economics (LSE), issues
such as the participation in urban life and taking responsibility in multicultural societies were discussed with people from different environments,
workshops were conducted in an effort to encourage individuals to
question the idea of being an urbanite and to take responsibility for their
own cities, as well as following up with award winning projects.
We continue to support foundations producing projects on environment,
supporting women labor and education:
With charity sales organized to underline the importance of the personal
development and economic freedom of women in our society; handmade
gifts, made by women on low incomes who were members of the
Foundation for the Support of Women’s Work, were purchased by
Deutsche Bank employees in order to help promotion and development of
handicrafts and to the economic freedom of women in our society.
Earth Week:
Through the “Earth Week”, which is celebrated between 15th and 22nd
April in the world and aims to raise awareness of environmental issues,
necessary measures were taken to promote the economical and correct
use of water and energy resources. There were a number of presentations
and speeches during the week, aimed at raising environmental awareness.
Diversity Week at Work:
Various events were organized between November 10th – 14th 2014 across
all Deutsche Bank branches simultaneously as part of “Diversity Week”,
which is aimed at creating awareness and promoting better understanding
between individuals.
Deutsche Bank A.Ş. employees have been implementing their own social
responsibility projects by taking individual responsibility:
Deutsche Bank A.Ş. pays prioritized attention to ensure that its employees
are individuals who are socially and environmentally conscious, sensitive
and prepared to take responsibility. Therefore, employees are encouraged
to take responsibility individually and to carry out their own projects.
Deutsche Bank employees improved their individual projects and worked
actively on collecting waste paper, plastic bags and caps of plastic bottles
in an effort to create a more sustainable environment in 2014. Employees
also worked on water and energy saving projects. Deutsche Bank A.Ş.
employees, even when they give a special gift to their loved ones,
contribute to people who face financial difficulty, the environment and
education by acting with concern for social responsibility.
3
Financial
Assessment and
Risk Management
37
38
40
40
40
41
41
43
44
45
Audits
Monitoring Targets
Credit Ratings
Deutsche Bank
Annual Report 2014
03 - Financial Assessment and Risk Management
37
The Audit Committee did not observe any adverse occurrences regarding the
Bank’s internal control, internal audit and risk management systems during the
2014 fiscal year. The Committee regularly corresponded with the Bank’s internal
systems department managers, closely monitored the Bank’s risk and operations
and ensured that all measures were taken for timely identification and elimination
of any risk. Regarding the compliance of the Bank’s accounting practices with
the Banking Law No. 5411 and other applicable legislation, the Committee
reviewed the assessments of the independent auditors and did not encounter any
discrepancies.
Our observations and opinions on the Bank’s risk management and
internal control activities are as follows:
Supervision by the Board of Directors and Executive Management: The
Board of Directors consists of experienced members who work actively in the
banking sector, are specialized in various fields of the banking profession and
possess sufficient knowledge on different types of assumed risks, how these risks
occur and how they can be managed.
The Executive Management works in close contact with the Board of Directors, is
knowledgeable and experienced on risk and is capable of utilizing the know-how
and experience of the parent bank, Deutsche Bank AG, in these areas.
Responsibilities regarding continuous risk reporting associated with developments
in the financial markets, risk management practices and the Bank’s operations
have been identified. Risk reporting is performed on a daily basis.
The Board of Directors and the Executive Management monitor the reliability and
functioning of accounting and reporting systems through specialists who are not
users of these systems.
The Board of Directors, Executive Management and the parent company, Deutsche
Bank AG, continuously review risk acceptance limits and implement the necessary
preventive measures in response to changing market conditions.
Bank AG, act conscientiously to ensure that the Bank’s business units and business
lines employ personnel who possess the necessary knowledge, experience and
expertise regarding the nature and scope of the tasks being performed.
In addition, employees are offered the opportunity to benefit from the Deutsche
Bank AG specialists, their knowledge and experience.
Through "the Code of Business Conduct and Ethics for Deutsche Bank Group"
document notified to the Deutsche Bank employees during the recruitment process
against signature, the Board of Directors, Executive Management and the main
partner, Deutsche Bank AG, have determined the general rules in order to form the
human resources team to conduct the Bank's activities in a safe and reliable way.
Thus, the necessary measures undertaken to carry out the Bank’s operations in a
safe and reliable manner and to ensure that employees are honest and ethical and
that they behave consistently with the Bank’s prudent management philosophy
and conduct.
Bank AG, monitor all operations of the Bank adequately through various internal
audit and control systems.
Deutsche Bank
Annual Report 2014
38
Before the Bank embarks on a new line of business or launches a new product,
the Board of Directors, Executive Management and the parent company, Deutsche
Bank AG, require the implementation of New Product Approval and New Business
Approval procedures to assess all potential risk which may arise from such
business or products, and provide the necessary infrastructure and internal
controls for the management of such risk.
The New Product Approval and New Business Approval procedures intend to
overview the adequacy of the Bank’s infrastructure necessary for identifying,
monitoring and controlling the potential risk before embarking on a new operation
or launching a new product.
The Bank’s risk in trading treasury bills and government bonds has been identified
and policies, implementation methods and limits to measure, monitor and control
these have been established.
These policies, implementation methods and limits are consistent with the level of
experience, goals and objectives and financial strength of Deutsche Bank A.Ş. as
well as of the parent bank, Deutsche Bank AG.
Hierarchical structure of the authorities and responsibilities in the Bank’s
operations are set out in the organization chart.
We did not identify any transaction that might result in any significant risk during
2014. The Bank’s risk management and internal control systems are capable of
identifying potential risk in advance.
On behalf of the Audit Committee
Kaya Didman, Chairman
As a result of the assessment made by the Board of Directors of Deutsche Bank
A.Ş. (“Bank”) of the internal controls on information systems and banking
processes for the audit period of January 1, 2014 – December 31, 2014 in terms of
efficiency, adequacy and compliance pursuant to Regulation on Bank Information
Systems and Banking Processes Audit to be Performed by External Audit
Institutions, which became effective on December 31, 2009 and publicly announced
at the Official Gazette on January 13, 2010 with issue no. 27461, by the Banking
Regulation and Supervision Agency and the Circular Letter dated June 30, 2010
with no. B.02.1.BDK.0.77.00.00.010.06.02/3 on “Management Declaration”, which
specifies the particulars of the Management Declaration, preparation of which is
stipulated in Article 33 of the Regulation above, we hereby declare that,
•
Board of Directors of our Bank is responsible from establishment and • Board
of Directors of our Bank is responsible from establishment and performance
of an efficient, adequate and compliant internal control system pursuant
to Articles 29 and 30 of the Banking Law with no. 5411 and to paragraph 1
of Article 4 of the Regulation on the Internal Systems and Internal Capital
Adequacy Assessment Process of the Banks, which was publicly announced at
the Official Gazette of June 11, 2014 with issue no. 29057,
Deutsche Bank
Annual Report 2014
39
•
Internal Control and Internal Audit Units of our Bank performed an
examination on the internal control system for the banking processes included
in Article 25 of the Regulation on Bank Information Systems and Banking
Processes Audit to be Performed by External Audit Institutions and the
Information Systems processes included in Article 24 of the same Regulation
and an assessment in order to reveal all significant control deficiencies
regarding this system,
•
During the assessment made by the related units of our Bank on the internal
control system, results of the works conducted by the related units of our
Bank, not the results of the works of the external audit institution were used,
•
No significant control deficiency was detected on the Internal Control System
of our Bank,
•
No significant control deficiency, which may hinder the efficiency, adequacy or
compliance of our internal control system in accordance with the procedures
and principles set forth in the second chapter of the Regulation on the Internal
Systems and Internal Capital Adequacy Assessment Process of the Banks,
entitled “The Internal Control System”, and the Communiqué on Principles
to be Considered in Information Systems Management in Banks, which was
publicly announced at the Official Gazette dated September 14, 2007 with issue
no. 26643, was found,
•
As a result of the assessment made on our internal control system, all control
weaknesses and noteworthy control deficiencies detected on our internal
control system are classified and presented to the external auditor in Annex 1,
even if they were corrected by the end of the period,
•
As a result of the audits performed by the Internal Audit Unit during 2014, 13
Control Weakness (CW) findings were determined in total and currently, 7 CW
findings are still open in accordance with the target dates of the management
action plans,
•
No act of misconduct or corruption, which may result in material
misrepresentation in the Financial tables or materially impact the integrity,
consistency, reliability and confidentiality, if and when a need for such
confidentiality arises, of sensitive data of the Bank, especially the financial
data, and continuity of the activities or in which managers, be it of important
function or not, or other employees with critical duties in the internal control
system of the Bank are involved, was detected,
•
Current status of the findings, i.e. whether they are closed or not, determined
in the previous external information systems and banking processes audits
and presented to the bank, closure of which have not yet been approved by
the external auditor are included in the Annex 2,
•
Subsequent to the examinations made on our internal control system, changes
in the internal control system or in other issues which may materially impact
the internal control system are presented to the external auditor in Annex 1 in
a way that will include the corrective actions taken by the bank in significant
and noteworthy control deficiencies.
Board of Directors of Deutsche Bank A.Ş.
Deutsche Bank
Annual Report 2014
Audits
40
Audits
During the fiscal period, the Bank underwent financial audit performed by the
Banking Regulation and Supervision Agency (BRSA) and the routine responsibility
audit, performed by the Central Bank of Turkey. In addition, independent auditor of
the Bank performed quarterly interim audits and an annual audit.
Other Information Regarding
Corporate Actions
No legal action has been lodged against the Bank that would affect the Bank’s
fiscal position and actions.
During 2014, the Bank was not ordered to pay any administrative fine by the BRSA
since no inconsistencies were found in the Bank’s application of regulations. No
administrative or legal sanctions have been applied against the Bank’s Board of
Directors.
As of December 31, 2014, the Bank’s total assets amounted to TL 2,921,847
thousands, increased by 24% compared to the previous year. The main reason of
the increase is the increase in reverse repo transactions.
Total loans increased by 21% from TL 904,029 thousands at the end of 2013 to TL
1,090,757 thousands by the end of 2014. All loans are short-term.
Total deposits amounted to TL 680,744 thousands at the end of 2014, implying 15%
growth over the TL 592,956 thousands at the end of 2013. This growth was largely
driven by the increase in banks deposits.
Items held in Custody grew by 9% from TL 45,377,511 thousands at the end of 2013
to TL 49,239,274 thousands at the end of 2014.
Off-balance sheet items decreased from TL 6,149,499 thousands at the end of 2013
to TL 4,490,400 thousands at the end of 2014 due to the decrease in forward value
securities trading transactions.
By the end of 2014, the Bank’s net profit after taxes was TL 80,571 thousands.
The Bank continues to operate at high levels of profitability and strengthens its
equity. The Bank commands a high level of liquidity which is sufficient to meet its
debts, and a capital adequacy standard ratio well in excess of the minimum rate
set by the related regulations.
Deutsche Bank
Annual Report 2014
Monitoring Targets
41
On and off-balance sheet foreign currency balances are managed concurrently.
While the receivables from reverse repo transactions, loans and securities portfolio
held for trading purposes comprise the majority of the Bank’s assets, the majority
of its profit is derived from interest from securities and loans and profits from
derivative financial instruments. The Bank’s liquidity and interest risk are managed
diligently by taking into account its capital and the funding limit set by Deutsche
Bank AG, for the risk exceeding a reasonable amount, by selling forward securities
to Deutsche Bank AG, London. The Bank maintains high levels of liquidity at all
times and makes investment decisions depending on prevailing market conditions.
The Bank’s parent company, Deutsche Bank AG, undertakes that it will fulfill the
contracted responsibilities of Deutsche Bank A.Ş. based on its declaration which
was approved at the General Assembly and published in its annual report.
Monitoring Targets
The annual budget is set by the Bank’s Board of Directors in line with the targets
and monitoring activities check whether or not operational results are in line with
the budget. Profit/loss, balance sheet and risk weighted assets, established in
accordance with the internal assessment process, are approved by the Board of
Directors of the Bank. The Bank made less profit than the profit budgeted due to
the effects of the market fluctuations in the current period.
Decisions taken by General Assembly are fulfilled by the Board of Directors without
exception.
General Policies
Deutsche Bank A.Ş. maintains Turkish Lira denominated Treasury Bills and
Government Bonds portfolio for trading purposes but is not engaged in equity/
stock trading. Bank’s tenor cap for cash corporate loans is five years. The bank
applies different limits for cash loans and for letters of guarantee and credit.
Deutsche Bank A.Ş. also has country and sector concentration limits. The bank
pays utmost attention not to engage in interbank money market transactions with
a maturity exceeding six months.
Foreign currency transactions with banks and the other corporations are conducted
on “delivery versus payment” basis; banks and corporations with a settlement
limit are exceptions to this rule. The bank has an approval procedure for the
new products and business lines. Insurance transactions regarding all kinds of
operational risk are coordinated with Deukona. Matters regarding reputational risk
are discussed and resolved in the Reputational Risk Committee. Disaster Recovery
Plan is regularly reviewed and tested.
Deutsche Bank
Annual Report 2014
42
Compliance with the relevant policies and limits are checked daily. All kinds of
breaches are reported to the senior management, relevant units and the Board
Member responsible from Internal Systems.
Deutsche Bank A.Ş. aims to enlarge its loan portfolio of large scale corporations.
Operating with a high capital adequacy ratio, bank’s efforts to enlarge its loan
portfolio will continue in 2015.
No efforts/ reporting procedure for early risk detection.
Risk Management
Risk Management is an independent unit responsible from risk management for
all types of market, operation and credit risk. It applies the policies defining the
precautions regarding monitoring, managing and administering and reporting
the risks determined under the Regulation on the Internal Systems of the Banks.
Function of the Risk Management Unit is to ensure that all risks that the Bank
is exposed to are defined, measured, monitored, controlled and reported in a
consolidated and unconsolidated manner by means of the policies, procedures
and limits specified to monitor, supervise and control, and if necessary, change
the risk return structure contained by the future cash flows of the Bank, and
accordingly the characteristics and level of the operations of the Bank. The basic
risk management divisions that should be preliminarily assessed by our Bank are
defined herein below:
Market Risk
Market risk is the possibility to incur a loss arising from Bank’s general market
risk, exchange rate risk (potential losses that may be incurred by the Bank as a
result of changes in exchange rates due to all of its foreign currency assets and
liabilities),interest rate risk (potential losses that may be incurred by the Bank as
a result of the movements in interest rates due to its positions regarding financial
instruments),swap risk (potential losses that may be incurred by the Bank due
to price fluctuations of securities, foreign exchanges or merchandise subject to
transactions as a result of failure to realize a swap transaction on its due date
in case of transactions which cover delivery of securities, foreign exchanges or
merchandise on the basis of prices on a certain due date and foresee that both
parties meet their obligations on such due dates) and counterparty credit risk in
trading accounts. Market Risk Management also includes liquidity risk (the risk of
Bank’s failing to fulfil its responsibilities on time due to the fact that it does not
have cash stock or flow that is sufficient to meet the cash outflow totally or on time
as a result of an imbalance in the cash flow) management.
Deutsche Bank
Annual Report 2014
Credit Ratings
43
Credit Risk
Credit risk is defined as the condition our Bank is in and the potential loss it may
incur if and when a customer of our Bank or a counterparty that our Bank is in
a business relationship fails to partially or totally fulfil its obligations arising
from a contract it signed with the Bank on time. All processes pertaining to
credit allocation by the Bank in favour of real persons or legal entities directly or
indirectly, utilization, monitoring and operation of the said credit are regarded
under the credit risk management. The principal amount of credit risk is the sum
of the credit risk amounts regarding on-balance sheet assets, non-cash credits,
liabilities and derivative financial instruments. It further includes Credit Risk,
Counterparty credit risk management, Concentration risk management and
Country risk management.
Operational Risk
Operational risk is the possibility to incur a loss arising from insufficient or
ineffective internal processes, failures related to employees and systems
or external sources, and it includes legal risk. Aim of the Operational Risk
Management is to early detect/ foresee the possible operational risks that the
Bank may be exposed to and to protect the Bank from any possible losses that
it may incur as a result of operational risks, to establish and ensure operation of
the necessary mechanisms needed for efficient management of operational risks
that may pose a delay or obstacle to achieving Deutsche Bank A.Ş.’s aims, and
to decrease the possibility of being exposed to operational risk and, thereby, to
participate into creation of a stronger capital base.
Credit Ratings
Deutsche Bank A.Ş. is not rated by rating agencies.
As of December 31, 2014, international rating agencies had attached the following
ratings to the Bank’s parent company, Deutsche Bank AG:
Short-term Rating Long-term Rating
Moody’s Investors Service P - 2
A3
Standard & Poor’s
A - 1
A
Fitch Ratings
F1 +
A +
Outlook Individual Rating
Negative
baa3
Negative
bbb+
Negative
a
Deutsche Bank
Annual Report 2014
44
Summary of Five - Year
Assets (TL 000)2014
20132012 20112010
Cash and Balances with the Central Bank
533.958
228.523
162.344
132.773
27.035
Trading Securities (Net)
578.215
797.082
618.241
1.195.014
348.652
Derivative Financial Assets Held-for-Trading
3.467
18.937
861
11.063
10.745
Banks and Other Financial Institutions
35.210
313.018
41.691
112.268
55.077
Receivables from Money Markets
550.169
-
- 170.1002.344.327
Investment Securities Available-for-Sale (Net)
- -- -Loans and Receivables
1.090.757
904.029
381.905
531.975
168.584
Unconsolidated Subsidiaries (Net)
- -- -Tangible Assets (Net)
2.042
2.675
3.442
2.532
3.617
Intangible Assets (Net)
20.013
27.028
34.151
39.429
45.646
Tax Assets
827
1.673
-
4.070
1.254
Other Assets
107.189
66.665
54.331
42.796
46.331
Total Assets
2.921.847
2.359.630 1.296.966
2.242.020 3.051.268
Liabilities (TL 000)2014
20132012 20112010
Deposits
680.744
592.956
430.740
334.835 1.790.087
Derivative Financial Liabilities
Held-for-Trading
3.192
18.145
1.065
13.832
13.020
Payables to Money Markets
31.283
187.512
59.753
816.753
19.783
Funds Borrowed
1.638.258
1.074.023
236.062
608.570
803.971
Securities Issued (Net)
-
-- -Funds
-
-- -Miscellaneous Payables
2.521
2.167
2.252
3.591
7.353
Other External Resources Payable
3.141
3.632
525
5.882
193
Factoring Payables
-
-- -Lease Payables (Net)
-
- - 17283
Provisions and Tax Liability
55.485
54.488
51.688
41.352
31.463
Subordinated Loans
-
-- -Shareholders’ Equity
507.223
426.707
514.881
417.188
385.115
Total Liabilities
2.921.847
2.359.630 1.296.966
2.242.020 3.051.268
Income Statement (TL 000)2014
20132012 20112010
Interest Income
223.716
158.897
301.467
214.384
103.482
Interest Expense
77.012
26.805
51.318
55.693
30.727
Net Interest Income/(Expense)
146.704
132.092
250.149
158.691
72.755
Net Fees and Commissions Income/(Expense) 45.623 55.94745.105 34.57221.851
Net Trading Income/(Loss)
1.619-100.171 -85.818 -81.834 22.188
Other Operating Income
12.441
16.433
7.511
6.464
6.966
Total Operating Profit
206.387
104.301
216.947
117.893
123.760
Provision for Losses on Loans or
Other Receivables (-)
3.826
10.170
1.804
7.263
970
Other Operating Expenses (-)
100.522
89.999
84.511
69.201
128.071
Net Operating Profit/(Loss)
102.039
4.132
130.632
41.429
-5.281
Gain/(Loss) on Net Monetary Position
-
-- -Profit/(Loss) Before Taxes 102.039
4.132
130.632
41.429
-5.281
Provision for Taxes (-)
21.468
2.045
26.525
9.356
760
Net Operating Profit/(Loss) after Taxes
80.571
2.087
104.107
32.073
-6.041
Extraordinary Profit/(Loss) After Taxes
-
-- -Net Profit/(Loss)
80.571
2.087
104.107
32.073
-6.041
Debt / Equity Ratio (%)
465,11
440,22
141,86
427,50
684,13
Deutsche Bank
Annual Report 2014
45
4
Independent
Auditors’ Report,
Financial Statements
and Disclosures
47
48
52
Independent Auditors’ Report
Unconsolidated Financial Report
DEUTSCHE BANK ANONİM ŞİRKETİ
Financial Statements As of and For the Year Ended 31 December 2014
With Independent Auditors’ Report Thereon
(Convenience Translation of Financial Statements and Related Disclosures and
Footnotes Originally Issued in Turkish)
Deutsche Bank
Annual Report 2014
49
50
Deutsche Bank
Annual Report 2014
SECTION ONE
GENERAL INFORMATION ABOUT THE BANK
I.
II.
III IV.
V.
PAGE
History of the Bank including its incorporation date, initial legal status, amendments to legal status
Bank’s shareholder structure, management and internal audit, direct and indirect shareholders,
change shareholder structure during the year and information’s on Bank’s risk group
Information’s on the Bank’s board of directors’ chairman and members, audit committee members,
general manager, assistant Information on the Bank’s qualified shareholders
Summary information on the Bank’s activities and services
52
52
53
54
55
SECTION TWO
Finansal Tablolar
I.
II.
III.
IV.
V.
VI.
VII.
Balance sheet (Statement of Financial Position)
Off-balance sheet items
Income statement
Statement of comprehensive income
Statement of changes in equity Statement of cash flows
Statement of profit distribution
56-57
58
59
60
61
62
63
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
I.
II. III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII. XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
XIX.
XX.
XXI.
XXII.
XXIII.
XXIV.
Basis of presentation
Basis of presentatiton of financial statements
Explanations on strategy of using financial instruments and foreign currency transactions
Informations related to investments in associates and subsidiaries
Explanations on forward, options and derivative transactions
Explanations on interest income and expenses
Explanations on fee and commission income and expense
Explanations on financial assets
Explanations on impairment of financial assets
Explanations on offsetting financial assets
Explanations on sales and repurchase agreements and securities lending transactions
Explanations on assets held for resale and discontinued operations
Explanations on goodwill and other intangible assets
Explanations on property and equipment
Explanations on leasing transactions
Explanations on provisions and contingent commitments
Explanations on contingent assets
Explanations on obligations related to employee rights
Explanations on taxation
Explanations on borrowings
Explanations on issuance of share certificates
Explanations on avalized drafts and bill of guarantee
Explanations on government grants
Explanations on profit reserves and profit distribution
64
64-65
65
65
65
65
66
66-67
67
67
67
67
67-68
68
68-69
69
69
69
69-70
70
70
70
70
70
51
Deutsche Bank
Annual Report 2014
XXV. Explanations on earnings per share
XXVI. Explanations on related parties
XXVII. Explanations on cash and cash equivalents
XXVIII. Explanations on segment reporting
XXIX. Reclassifications
71
71
71
71
71
SECTION FOUR
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Explanations on capital adequacy ratio
Explanations on credit risk
Explanations on market risk
.
Explanations on operational risk
Explanations on currency risk
Explanations on interest rate risk
Explanations on liquidity risk
Explanation regarding the presentation of financial assets and liabilities at their fair values
Explanation regarding the activities carried out on behalf and account of other parties
Explanations on operating segments
72-78
78-85
85-86
86-87
87-88
89-91
91-96
96-97
97
98
SECTION FIVE
EXPLANATIONS AND NOTES RELATED TO FINANCIAL STATEMENTS
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
Explanations and notes related to assets
Explanations and notes related to liabilities
Explanations and notes related to off-balance sheet accounts
Explanations and notes related to income statement
Explanations and notes related to changes in shareholders’ equity
Explanations and notes related to statement of cash flows
Explanations and notes related to Bank’s risk group
Explanations and notes related to domestic, foreign off-shore branches and foreign
representatives of the Bank
Explanations and notes related to subsequent events 99-105
106-110
111-113
113-117
118
118-119
119-121
121
121
SECTION SIX
OTHER EXPLANATIONS AND NOTES
I.
Other explanations related to Bank’s operations 122
SECTION SEVEN
EXPLANATIONS ON INDEPENDENT AUDITORS’ REPORT
I.
II.
Explanations on independent auditors’ report 122
Explanations and notes prepared by independent auditors 122
Deutsche Bank
Annual Report 2014
52
Deutsche Bank Anonim Şirketi
Notes to the Financial Statements at 31 December 2014
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
SECTION ONE
GENERAL INFORMATION ABOUT THE BANK
I.History of the Bank including its incorporation date, initial legal status, amendments to legal status
Deutsche Bank Anonim Şirketi (“the Bank”) was established with Council of Ministers Permit No. 87/12432, dated 16
December 1987. This permit was published in the Official Gazette dated 26 December 1987 and it was registered on 4
April 1988. The “Articles of Association” of the Bank were published in the Trade Registry Gazette on 7 April 1988. The
commercial title of the Bank upon its establishment was “Türk Merchant Bank A.Ş.” which was changed to “Bankers Trust
A.Ş.” on 17 April 1997. After the global merger of Bankers Trust and Deutsche Bank, the Bank’s commercial title has been
changed to “Deutsche Bank Anonim Şirketi” at 1 March 2000. The Bank obtained the permission to accept deposits with
the article numbered 1381 and dated 8 September 2004 of Banking Regulatory and Supervisory Agency (“BRSA”). This
permission became valid after it was published in Official Gazette No. 25614 dated 15 October 2004. The Bank’s head office
is located in Istanbul and has no branches.
Based on the decision taken at General Assembly Meeting of the Deutsche Bank Anonim Şirketi held on 28 March 2013,
the Articles of Association has been amended in compliance with the Turkish Commercial Code (“TCC”) no. 6102. In
this concept, the “Articles of Association” of the Bank was updated and simplified in accordance with TCC no. 6012. The
updated Articles of Association came into effect after being published in Trade Registery Gazette No.8304 dated 19 April
2013.
II. Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change in shareholder
structure during the year and information on Bank’s risk group
As of 31 December 2014, the Bank’s paid-in capital is comprised of 1.350.000.000 shares whose historical nominal unit
values are TL 0,1. The Bank is one of the group companies of Deutsche Bank Group and 99.99% of the Bank’s capital is
owned by Deutsche Bank AG.
15 years
24 years
holds no shares of the Bank.
Assistant General Managers
Hakan Ulutaş Trade and Custody Services 18 October 2012
Undergraduate: İstanbul University Management Faculty
22 years
Master: Marmara University Science Research and Application Center,
Contemporary Business Education Directorate
Cenk Esener Corporate Cash Management 18 October 2012
Undergraduate: Eastern Mediterranean Universy Economics Department
19 years
and Foreign Trade
Ali Doğrusöz Technology and Operations16 December 2002
Undergraduate: North Carolina University, Mechanical Engineering 26 years
Master: METU Mechanical Engineering
Süleyman Mert Haraçcı
Global Markets 28 October 2009
Undergraduate and Master: Marmara University, Finance Department
20 years
Tijen Gümüşdiş 16 January 2014
Undergraduate: Boğaziçi University Faculty of
Administrative Sciences, Management and Economics
Member of Board and
Audit Committee
Paul Antony Geradine12 December 2012
Undergraduate: Associate Institute of Chartered Accountants in England and Wales Master: University of Oxford, Bachelor of Arts in Modern History
Chairman
Peter Johannes Maria Tils 21 November 2012
Undergraduate: Bonn University Political 37 years
Economics Master: Köln University Management
Vice Chairman and Chairman
of the Audit Committee
Kaya Didman 27 March 2008
Undergraduate: Boğaziçi University 26 years
Faculty of Administrative Sciences, Management
Board Member and Ersin Akyüz 27 February 2008
Undergraduate: London School of Economics
26 years
General Manager
Master: University of Chicago
Members of Board
H.Sedat Eratalar
Internal Systems
2 August 2001
Undergraduate: Ankara University
34 years
Economics and Public Finance Department
Satvinger Singh
12 July 2012
Undergraduate: Delhi College of Engineering 21 years
Master: Durham University, Management
Marco Kistner29 September 2012
Undergraduate: Frankfurt University Bank Management
31 years
Özge Kutay
Financial Reporting 18 October 2012
Undergraduate: İstanbul University Faculty of 21 years
Economics and Administrative Sciences
III. Information on the Bank’s board of directors’ chairman and members, audit committee members, general manager, assistant general managers, change in top management
and their shareholdings in the Bank
Experience in
Banking and
Appointment Business
Title
Name & Surname
Responsibilities
Date
EducationAdministration
Deutsche Bank
Annual Report 2014
53
54
Deutsche Bank
Annual Report 2014
Changes occured for the year ended 31 December 2014:
Title
Member of Board (*)
Assistant General Manager (**)
Outgoing within the period
Appointee within the period
Ahmet Arınç
Mustafa Bağrıaçık
Tijen Gümüşdiş
-
The Board Member Ahmet Arınç has resigned from the membership of the board at 16 January 2014. At the same date,
Tijen Gümüşdiş has been assigned as a board member. The appointment is approved by March 26, 2014 Ordinary General
Assembly.
(**)
As at 30 September 2014, Assistant General Manager Mustafa Bağrıaçık, who is responsible from the investment
banking, has resigned from the Bank.
(*)
IV. Information on the Bank’s qualified shareholders
The Bank’s qualified shareholder, which has direct or indirect control power, due to the definition of qualified portion on
Banking Act No. 5411 and regarding to Article 13th of Communiqué on Transactions Subject to Bank’s Permission and
Indirect Portion Ownership, is shown below:
Name Surname
Share
Share
Paid
Commercial Title
Amounts
Ratios
Shares
Deutsche Bank AG
134.999
99,99
134.999
Other
1
0,01
1
Total
135.000
100
135.000
Unpaid
Shares
-
Deutsche Bank
Annual Report 2014
55
V. Summary information on the Bank’s activities and services
Activities of the Bank as stated in its Articles of Association are as follows:
•All banking operations;
•Jointly establishing enterprises with the corporations or individuals, joint ventures, investing to the existing or newly
established commercial and industrial institutions, banks and financial institutions and transferring the shares of those
enterprises;
•Providing commercial and insurance activities on behalf of the Bank or the domestic and foreign institutions, acting
as agencies, and providing commitments to public and non-public entities in compliance and not restricted with the
regulations set by the Banking Law and the related legislations;
•Purchasing and selling marketable securities on behalf of the Bank or third parties, issuing debt securities by taking
the necessary permissions in accordance with the related legislation, establishing and managing investment funds and
performing other capital market transactions, which are allowed by the Banking Law and operating in stock exchange;
•Performing factoring and forfaiting;
•Performing any transactions in foreign currency markets including derivative transactions on behalf of the Bank or its’
customers;
•Performing equipment leasing and real estate financing by way of leasing the extent permitted by legislation
•Acquiring intangible assets related with the Bank’s operations and making savings on them;
The Bank, which has been providing investment banking services since its establishment date, has obtained the permission
to accept deposits from BRSA Decision No. 1381 dated 8 September 2004, as a result of the Bank’s growth and investment
policies in Turkey. This permission became into force after it was published in Official Gazette No. 25614 dated 15 October
2004.
The main operations of the Bank are, Interbank Money Market transactions, purchasing and selling marketable securities,
foreign currency transactions, providing collateralised non-cash loans related with commercial activities and custody
services. After obtaining commercial banking licence, in addition to the Bank’s current operations like commercial banking
and money market transactions, the Bank became structured to meet all of the needs of its’ customers by providing
services such as accepting deposits, opening individual accounts and selling cash management products and services,
accordingly.
As of 31 December 2014, the number of employees of the Bank is 115 (31 December 2013: 110).
56
Deutsche Bank
Annual Report 2014
Balance Sheet (Statement of Financial Position)
as at 31 December 2014
SECTION TWO
FINANCIAL STATEMENTS
I. BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
ASSETS
Note (5 - I)
TL
Current period
31 December 2014
FC
Total
Prior period
31 December 2013
TL
FC
Total
I.
CASH AND BALANCES WITH THE CENTRAL BANK
(1)
46.074
487.884
533.958
30.142 198.381 228.523
II.
FINANCIAL ASSETS AT FAIR VALUE THROUGH
PROFIT/LOSS (Net)
(2)
578.215
3.467
581.682 797.082 18.937 816.019
2.1 Trading securities
578.215
3.467
581.682 797.082 18.937 816.019
2.1.1 Government debt securities
578.215
-
578.215 797.082
- 797.082
2.1.2 Share certificates
-
-
-
-
-
2.1.3 Trading derivative instruments
-
3.467
3.467
- 18.937
18.937
2.1.4 Other securities
-
-
-
-
-
2.2 Financial assets at fair value through profit/loss
-
-
-
-
-
-
-
-
-
-
2.2.2 Share certificates
-
-
-
-
-
2.2.3 Loans
-
-
-
-
-
2.2.4 Other securities
-
-
-
-
-
III.
BANKS
(3)
21.649
13.561
35.210 307.745
5.273 313.018
IV.
MONEY MARKET PLACEMENTS
550.169
-
550.169
-
-
4.1 Interbank money market placements
-
-
-
-
-
4.2 Istanbul Stock Exchange money market placements
-
-
-
-
-
4.3 Receivables from reverse repurchase agreements
550.169
-
550.169
-
-
V.
AVAILABLE FOR SALE FINANCIAL ASSETS (Net)
(4)
-
-
-
-
-
5.1 Share certificates
-
-
-
-
-
5.2 Government debt securities
-
-
-
-
-
5.3 Other securities
-
-
-
-
-
VI.
LOANS AND RECEIVABLES
(5)
551.435
539.322 1.090.757 491.836 412.193 904.029
6.1 Loans
551.435
539.322 1.090.757 491.836 412.193 904.029
6.1.1 The Bank's risk group's loans
-
-
-
-
-
-
-
-
-
-
6.1.3 Others
551.435
539.322 1.090.757 491.836 412.193 904.029
6.2 Loans at follow-up
-
-
-
-
-
6.3 Specific provisions (-)
-
-
-
-
-
VII. FACTORING RECEIVABLES
-
-
-
-
-
VIII. HELD TO MATURITY FINANCIAL ASSETS (Net)
(6)
-
-
-
-
-
8.1 Government bonds
-
-
-
-
-
8.2 Other securities
-
-
-
-
-
IX.
INVESTMENTS IN ASSOCIATES (Net)
(7)
-
-
-
-
-
9.1 Consolidated according to equity method
-
-
-
-
-
9.2 Non-consolidated
-
-
-
-
-
9.2.1 Financial associates
-
-
-
-
-
9.2.2 Non-Financial associates
-
-
-
-
-
X.
INVESTMENTS IN SUBSIDIARIES (Net) (8)
-
-
-
-
-
10.1 Non-consolidated financial subsidiaries
-
-
-
-
-
10.2 Non-consolidated non-financial subsidiaries
-
-
-
-
-
XI.
INVESTMENTS IN JOINT VENTURES (Net) (9)
-
-
-
-
-
11.1 Consolidated according to equity method
-
-
-
-
-
11.2 Non-consolidated
-
-
-
-
-
11.2.1Financial joint ventures
-
-
-
-
-
11.2.2Non-financial joint ventures
-
-
-
-
-
XII. FINANCIAL LEASE RECEIVABLES (Net)
(10)
-
-
-
-
-
12.1 Financial lease receivables (Net)
-
-
-
-
-
12.2 Operational lease receivables
-
-
-
-
-
12.3 Other
-
-
-
-
-
12.4 Unearned Income (-)
-
-
-
-
-
XIII. DERIVATIVE FINANCIAL INSTRUMENTS HELD FOR
RISK MANAGEMENT
(11)
-
-
-
-
-
13.1 Fair value hedges
-
-
-
-
-
13.2 Cash flow hedges
-
-
-
-
-
13.3 Net foreign investment hedges
-
-
-
-
-
XIV. TANGIBLE ASSETS (Net) (12)
2.042
-
2.042
2.675
-
2.675
XV. INTANGIBLE ASSETS (Net)
(13)
20.013
-
20.013
27.028
-
27.028
15.1 Goodwill
-
-
-
-
-
15.2 Other intangibles
20.013
-
20.013
27.028
-
27.028
XVI. INVESTMENT PROPERTY (Net)
(14)
-
-
-
-
-
XVII. TAX ASSET
(15)
827
-
827
1.673
-
1.673
17.1 Current tax asset
827
-
827
1.673
-
1.673
17.2 Deferred tax asset
-
-
-
-
-
XVIII. ASSETS HELD FOR SALE OR FOR DISCONTINUED
OPERATIONS (Net)
(16)
-
-
-
-
-
18.1 Held for sale
-
-
-
-
-
18.2 Related with discontinued operations
-
-
-
-
-
XIX. OTHER ASSETS
(17)
10.117
97.072
107.189
10.785 55.880
66.665
TOTAL ASSETS 1.780.541 1.141.306 2.921.847 1.668.966 690.664 2.359.630
Deutsche Bank
Annual Report 2014
57
Balance Sheet (Statement of Financial Position)
as at 31 December 2014
I. BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
Current period
Prior period
31 December 2014
31 December 2013
LIABILITIES
Note (5 - I)
TL
FC
Total
TL
FC
Total
I.
DEPOSITS
(1)
407.417
273.327
680.744
542.551
50.405
592.956
1.1
The Bank's risk group's deposits
34.892
-
34.892
258.390
-
258.390
1.2
Others
372.525
273.327
645.852
284.161
50.405
334.566
II.
DERIVATIVE FINANCIAL LIABILITIES HELD
FOR TRADING
(2)
-
3.192
3.192
-
18.145
18.145
III.
FUNDS BORROWED
(3)
701.690
936.568
1.638.258
401.913
672.110 1.074.023
IV.
INTERBANK MONEY MARKET
31.283
-
31.283
187.512
-
187.512
4.1
Interbank money market funds
-
-
-
-
-
4.2
Istanbul Stock Exchange money market funds
-
-
-
-
-
4.3
Obligations under repurchase agreements
31.283
-
31.283
187.512
-
187.512
V.
SECURITIES ISSUED (Net)
-
-
-
-
-
5.1
Bills
-
-
-
-
-
5.2
Asset backed securities
-
-
-
-
-
5.3
Bonds
-
-
-
-
-
VI.
FUNDS
-
-
-
-
-
6.1
Borrower funds
-
-
-
-
-
6.2
Others
-
-
-
-
-
VII.
MISCELLANEOUS PAYABLES
2.315
206
2.521
2.102
65
2.167
VIII.
OTHER EXTERNAL RESOURCES PAYABLE
(4)
189
2.952
3.141
1.063
2.569
3.632
IX.
FACTORING PAYABLES
-
-
-
-
-
X.
LEASE PAYABLES
(5)
-
-
-
-
-
10.1 Finance lease payables
-
-
-
-
-
10.2 Operational lease payables
-
-
-
-
-
10.3 Others
-
-
-
-
-
10.4 Deferred expenses (-)
-
-
-
-
-
XI.
DERIVATIVE FINANCIAL LIABILITIES HELD
FOR RISK MANAGEMENT
(6)
-
-
-
-
-
11.1 Fair value hedges
-
-
-
-
-
11.2 Cash flow hedges
-
-
-
-
-
11.3 Net foreign investment hedges
-
-
-
-
-
XII.
PROVISIONS
(7)
29.433
19.010
48.443
26.437
19.478
45.915
12.1 General provisions
18.477
-
18.477
14.833
-
14.833
12.2 Restructuring reserves
-
-
-
-
-
12.3 Reserve for employee benefits
10.616
6.241
16.857
11.110
7.084
18.194
12.4 Insurance technical provisions (Net)
-
-
-
-
-
12.5 Other provisions
340
12.769
13.109
494
12.394
12.888
XIII. TAX LIABILITY
(8)
7.042
-
7.042
8.573
-
8.573
13.1 Current tax liability
5.381
-
5.381
5.544
-
5.544
13.2 Deferred tax liability
1.661
-
1.661
3.029
-
3.029
XIV. LIABILITIES FOR ASSETS HELD FOR SALE AND ASSETS
OF DISCONTINUED OPERATIONS (Net)
(9)
-
-
-
-
-
14.1 Held for sale
-
-
-
-
-
14.2 Discontinued operations
-
-
-
-
-
XV.
SUBORDINATED DEBTS
(10)
-
-
-
-
-
XVI. SHAREHOLDERS' EQUITY
(11)
507.223
-
507.223
426.707
-
426.707
16.1 Paid-in capital
135.000
-
135.000
135.000
-
135.000
16.2 Capital reserves
31.866
-
31.866
31.866
-
31.866
16.2.1 Share premium
-
-
-
-
-
16.2.2 Share cancellation profits
-
-
-
-
-
16.2.3 Marketable securities value increase fund
-
-
-
-
-
16.2.4 Tangible assets revaluation differences
-
-
-
-
-
16.2.5 Intangible assets revaluation differences
-
-
-
-
-
16.2.6 Investment property revaluation differences -
-
-
-
-
16.2.7 Bonus shares from associates, subsidiaries
and joint-ventures
-
-
-
-
-
16.2.8 Hedging reserves (effective portion)
-
-
-
-
-
16.2.9 Revaluation surplus on assets held for sale and assets
of discontinued operations
-
-
-
-
-
16.2.10Other capital reserves
31.866
-
31.866
31.866
-
31.866
16.3 Profit reserves
259.786
-
259.786
257.754
-
257.754
16.3.1 Legal reserves
57.693
-
57.693
57.679
-
57.679
16.3.2 Status reserves
-
-
-
-
-
16.3.3 Extraordinary reserves
201.880
-
201.880
200.075
-
200.075
16.3.4 Other profit reserves
213
-
213
-
-
16.4 Profit or loss
80.571
-
80.571
2.087
-
2.087
16.4.1 Prior periods profit / loss
-
-
-
-
-
16.4.2 Current period profit / loss
80.571
-
80.571
2.087
-
2.087
TOTAL LIABILITIES
1.686.592 1.235.255
2.921.847 1.596.858
762.772 2.359.630
The notes between pages 13 and 86 are an integral part of these financial statements.
Deutsche Bank
Annual Report 2014
58
Off-Balance Sheet Items as at 31 December 2014
II. OFF-BALANCE SHEET ITEMS
Current period
Prior period
31 December 2014
31 December 2013
OFF-BALANCE SHEET
Note (5 - llI)
TL
FC
Total
TL
FC
Total
A.
OFF-BALANCE SHEET COMMITTMENTS (I+II+III)
1.914.921
2.575.479
4.490.400
2.591.374
3.558.125
6.149.499
I.
GUARANTIES AND WARRANTIES
(1)
30.067
183.034
213.101
23.472
163.946
187.418
1.1
Letters of guarantee
30.067
158.362
188.429
23.472
155.891
179.363
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
30.067
158.362
188.429
23.472
155.891
179.363
1.2
Bank acceptances
-
-
-
-
-
1.2.1 Import letter of acceptance
-
-
-
-
-
1.2.2 Other bank acceptances
-
-
-
-
-
1.3
Letters of credit
-
13.164
13.164
-
6.412
6.412
1.3.1 Documentary letters of credit
-
13.164
13.164
-
6.412
6.412
1.3.2 Other letters of credit
-
-
-
-
-
1.4
Guaranteed prefinancings
-
-
-
-
-
1.5
Endorsements
-
-
-
-
-
1.5.1 Endorsements to the Central Bank of Turkey
-
-
-
-
-
1.5.2 Other endorsements
-
-
-
-
-
1.6
Underwriting commitments
-
-
-
-
-
1.7
Factoring related guarantees
-
-
-
-
-
1.8
Other guarantees
-
-
-
-
-
1.9
Other sureties
-
11.508
11.508
-
1.643
1.643
II.
COMMITMENTS
(1)
1.587.568
1.187.293
2.774.861
1.849.935
2.135.317
3.985.252
2.1
Irrevocable commitments
1.068.345
466.912
1.535.257
1.617.589
1.355.517
2.973.106
2.1.1 Forward asset purchase and sales commitments
44.329
38.387
82.716
767.543
910.272
1.677.815
2.1.2 Forward deposit purchase and sales commitments
-
-
-
-
-
2.1.3 Share capital commitments to associates and subsidiaries -
-
-
-
-
2.1.4 Loan granting commitments
1.023.978
-
1.023.978
849.997
-
849.997
2.1.5 Securities issuance brokerage commitments
-
-
-
-
-
2.1.6 Commitments for reserve deposit requirements
-
-
-
-
-
2.1.7 Commitments for cheque payments
17
-
17
44
-
44
2.1.8 Tax and fund obligations on export commitments
21
-
21
5
-
5
2.1.9 Commitments for credit card limits
-
-
-
-
-
2.1.10 Commitments for credit cards and banking services related promotions
-
-
-
-
-
2.1.11 Receivables from "short" sale commitments on securities
-
-
-
-
-
2.1.12 Payables from "short" sale commitments on securities
-
-
-
-
-
2.1.13 Other irrevocable commitments
-
428.525
428.525
-
445.245
445.245
2.2
Revocable commitments
519.223
720.381
1.239.604
232.346
779.800
1.012.146
2.2.1 Revocable loan granting commitments
519.223
720.381
1.239.604
232.346
779.800
1.012.146
2.2.2 Other revocable commitments
-
-
-
-
-
III.
DERIVATIVE FINANCIAL INSTRUMENTS
(2)
297.286
1.205.152
1.502.438
717.967
1.258.862
1.976.829
3.1
Derivative financial instruments held for risk management
-
-
-
-
-
3.1.1 Fair value hedges
-
-
-
-
-
3.1.2 Cash flow hedges
-
-
-
-
-
3.1.3 Hedge of net investment in foreign operations
-
-
-
-
-
3.2
Trading derivatives
297.286
1.205.152
1.502.438
717.967
1.258.862
1.976.829
3.2.1 Forward foreign currency purchases/sales
167.337
196.064
363.401
362.854
372.537
735.391
3.2.1.1 Forward foreign currency purchases
93.430
88.226
181.656
188.691
179.172
367.863
3.2.1.2 Forward foreign currency sales
73.907
107.838
181.745
174.163
193.365
367.528
3.2.2 Currency and interest rate swaps
129.949
1.009.088
1.139.037
355.113
886.325
1.241.438
3.2.2.1 Currency swaps-purchases
66.980
502.928
569.908
171.637
449.274
620.911
3.2.2.2 Currency swaps-sales
62.969
506.160
569.129
183.476
437.051
620.527
3.2.2.3 Interest rate swaps-purchases
-
-
-
-
-
3.2.2.4 Interest rate swaps-sales
-
-
-
-
-
3.2.3 Foreign currency, interest rate and security options
-
-
-
-
-
3.2.3.1 Foreign currency call options
-
-
-
-
-
3.2.3.2 Foreign currency put options
-
-
-
-
-
3.2.3.3 Interest rate call options
-
-
-
-
-
3.2.3.4 Interest rate put options
-
-
-
-
-
3.2.3.5 Security call options
-
-
-
-
-
3.2.3.6 Security put options
-
-
-
-
-
3.2.4 Foreign currency futures
-
-
-
-
-
3.2.4.1 Foreign currency futures-purchases
-
-
-
-
-
3.2.4.2 Foreign currency futures-sales
-
-
-
-
-
3.2.5 Interest rate futures
-
-
-
-
-
3.2.5.1 Interest rate futures-purchases
-
-
-
-
-
3.2.5.2 Interest rate futures-sales
-
-
-
-
-
3.2.6 Others
-
-
-
-
-
B.
CUSTODY AND PLEDGED ITEMS (IV+V+VI)
49.209.397
29.877
49.239.274
45.347.241
30.270
45.377.511
IV.
ITEMS HELD IN CUSTODY
(5)
49.209.397
29.877
49.239.274
45.347.241
30.270
45.377.511
4.1
Customers' securities held
41.188.445
-
41.188.445
37.802.836
-
37.802.836
4.2
Investment securities held in custody
7.995.631
-
7.995.631
7.510.698
-
7.510.698
4.3
Checks received for collection
25.321
6.688
32.009
33.707
8.927
42.634
4.4
Commercial notes received for collection
-
-
-
-
-
4.5
Other assets received for collection
-
-
-
-
-
4.6
Assets received through public offering
-
-
-
-
-
4.7
Other items under custody
-
23.189
23.189
-
21.343
21.343
4.8
Custodians
-
-
-
-
-
V.
PLEDGED ITEMS
-
-
-
-
-
5.1
Marketable securities
-
-
-
-
-
5.2
Guarantee notes
-
-
-
-
-
5.3
Commodities
-
-
-
-
-
5.4
Warranties
-
-
-
-
-
5.5
Real estates
-
-
-
-
-
5.6
Other pledged items
-
-
-
-
-
5.7
Pledged items-depository
-
-
-
-
-
VI.
CONFIRMED BILLS OF EXCHANGE AND SURETIES
-
-
-
-
-
TOTAL OFF-BALANCE SHEET ITEMS (A+B)
51.124.318
2.605.356
53.729.674
47.938.615
3.588.395
51.527.010
Deutsche Bank
Annual Report 2014
59
Income Statement for the Year Ended 31 December 2014
III. INCOME STATEMENT
Current period Prior period
1 January-
1 JanuaryINCOME AND EXPENSE ITEMS
31 December 31 December
Note (5 - IV)
2014
2013
I.
INTEREST INCOME
(1)
223.716
158.897
1.1 Interest income from loans
77.260
37.370
1.2 Interest income from reserve deposits
-
1.3 Interest income from banks
13.806
7.569
1.4 Interest income from money market transactions
74.990
27.891
1.5 Interest income from securities portfolio
57.194
85.707
1.5.1 Trading financial assets
57.194
85.707
1.5.2 Financial assets valued at fair value through profit or loss
-
1.5.3 Financial assets available-for-sale
-
1.5.4 Investments held-to-maturity
-
1.6 Finance lease income
-
1.7 Other interest income
466
360
II.
INTEREST EXPENSE
(2)
77.012
26.805
2.1 Interest on deposits
14.567
7.122
2.2 Interest on funds borrowed
59.268
6.179
2.3 Interest on money market transactions
3.177
13.504
2.4 Interest on securities issued
-
2.5 Other interest expenses
-
III. NET INTEREST INCOME / EXPENSE (I - II)
146.704
132.092
IV. NET FEES AND COMMISSIONS INCOME / EXPENSE
45.623
55.947
4.1 Fees and commissions received
58.802
68.100
4.1.1 Non-cash loans
1.857
1.712
4.1.2 Others
(12)
56.945
66.388
4.2 Fees and commissions paid
13.179
12.153
4.2.1 Non-cash loans
-
4.2.2 Others
(12)
13.179
12.153
V. DIVIDEND INCOME
(3)
-
VI. NET TRADING INCOME/LOSSES (Net)
(4)
1.619
(100.171)
6.1 Trading account income/losses
39.123
(55.323)
6.2 Income/losses from derivative financial instruments
(90.716)
136.715
6.3 Foreign exchange gains/losses
53.212
(181.563)
VII. OTHER OPERATING INCOME
(5)
12.441
16.433
VIII. TOTAL OPERATING PROFIT (III+IV+V+VI+VII)
206.387
104.301
IX. PROVISION FOR LOSSES ON LOANS AND RECEIVABLES (-)
(6)
3.826
10.170
X. OTHER OPERATING EXPENSES (-)
(7)
100.522
89.999
XI. NET OPERATING PROFIT/LOSS (VIII-IX-X)
102.039
4.132
XII. INCOME RESULTED FROM MERGERS
-
XIII. INCOME/LOSS FROM INVESTMENTS UNDER EQUITY ACCOUNTING
-
XIV GAIN/LOSS ON NET MONETARY POSITION
-
XV. PROFIT/LOSS BEFORE TAXES (XI+XII+XIII+XIV)
(8)
102.039
4.132
XVI. PROVISION FOR TAXES
(9)
21.468
2.045
16.1 Current tax charge
22.890
3.850
16.2 Deferred tax charge/(credit)
(1.422)
(1.805)
XVII. NET OPERATING PROFIT/LOSS AFTER TAXES (XV-XVI)
(10)
80.571
2.087
XVIII.INCOME FROM DISCONTINUED OPERATIONS
-
18.1 Income from assets held for sale
-
18.2 Income from sale of associates, subsidiaries and joint-ventures
-
18.3 Others
-
XIX. EXPENSES FROM DISCONTINUED OPERATIONS (-)
-
19.1 Expenses on assets held for sale
-
19.2 Expenses on sale of associates, subsidiaries and joint-ventures
-
19.3 Others
-
XX. PROFIT/LOSS BEFORE TAXES ON DISCONTINUED OPERATIONS (XVIII-XIX)
-
XXI. PROVISION FOR TAXES OF DISCONTINUED OPERATIONS
-
21.1 Current tax charge
-
21.2 Deferred tax charge/(credit)
-
XXII. NET PROFIT / LOSS AFTER TAXES ON DISCONTINUED OPERATIONS (XX+XXI)
-
XVIII.NET PERIOD PROFIT/LOSS (XVII+XXII)
(11)
80.571
2.087
Earnings Per Share (TL Full)
(3.XXIV)
0,0597
0,0015
The notes between pages 13 and 86 are an integral part of these financial statements
IV.STATEMENT OF INCOME/EXPENSE ITEMS RECOGNIZED UNDER EQUITY
INCOME/EXPENSE ITEMS RECOGNIZED UNDER EQUITY
I.
MARKET VALUE GAINS ON AVAILABLE FOR SALE ASSETS
II. TANGIBLE ASSETS REVALUATION DIFFERENCES
III. INTANGIBLE ASSETS REVALUATION DIFFERENCES
IV. TRANSLATION DIFFERENCES FOR TRANSACTIONS IN FOREIGN CURRENCIES
V. GAIN/LOSS ON DERIVATIVE FINANCIAL ASSETS HELD FOR CASH FLOW HEDGES (effective portion)
(effective portion)
VI. GAIN/LOSS ON DERIVATIVE FINANCIAL ASSETS HELD FOR HEDGES OF NET INVESTMENT IN FOREIGN OPERATIONS
(effective portion)
VII. EFFECTS OF CHANGES IN ACCOUNTING POLICIES AND CORRECTIONS OF ERRORS
VIII. OTHER PROFIT/LOSS ITEMS ACCOUNTED FOR UNDER SHAREHOLDERS' EQUITY AS PER TAS
IX. DEFERRED TAX OF VALUATION DIFFERENCES
X. NET PROFIT/LOSS ACCOUNTED FOR DIRECTLY UNDER SHAREHOLDERS' EQUITY (I+II+...+IX)
XI. CURRENT YEAR PROFIT/LOSS
11.1 Net changes in fair value of securities (transferred to income statement)
11.2 Gains/losses on derivative financial assets held for cash flow hedges, reclassified and recorded in income statement
11.3 Gains/losses on hedges of net investment in foreign operations, reclassified and recorded in income statement
11.4 Others
XII. TOTAL PROFIT/LOSSFOR THE YEAR (X+XI)
Statement of Income/Expense Items Recognized Under Equity
for the Year Ended 31 December 2014
Prior period
1 January31 December 2013
2.087
2.087
2.087
Current period
1 January-
31 December 2014
-
-
-
-
-
-
-
265
(52)
213
80.571
-
-
-
80.571
80.784
Deutsche Bank
Annual Report 2014
60
Revaluation
Surplus on
Assets Held
for sale
and onDisc.
Operations
Total
Equity
I.
Openning Balance
(5.II.11) 135.000
31.866
-
-
57.679
-
200.075
-
2.087
-
-
-
-
-
- 426.707
Changes during the period
II.
Increase / Decrease related to merger -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
III.
Marketable securities value increase fund
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
IV.
Hedging (Effective portion)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4.1
Cash-flow hedge
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4.2
Hedge of net investment in foreign operations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
V.
Tangible assets revaluation differences -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VI.
Intangible assets revaluation differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VII.
Bonus shares obtained from associates, subsidiaries
and jointly controlled entities (Joint Vent.)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VIII. Foreign exchange differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
IX.
Disposal of assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
X.
Reclassification of assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XI.
Effect of change in equities of associates
on bank's equity -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XII. Capital increase
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.1 Cash
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.2 Internal sources
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIII. Share issuance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIV. Share cancellation profits
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XV. Effect of inflation on paid-in capital
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVI. Other
5.II.7
-
-
-
-
-
-
-
213
-
-
-
-
-
-
-
213
XVII. Net profit for the perod
-
-
-
-
-
-
-
-
80.571
-
-
-
-
-
-
80.571
XVIII. Profit distribution -
-
-
-
14
-
1.805
-
(2.087)
-
-
-
-
-
-
(268)
18.1 Dividends distributed 5.V.5
-
-
-
-
-
-
-
(268)
-
-
-
-
-
-
(268)
18.2 Transfers to reserves
5.V.5
-
-
-
-
14
-
1.805
-
(1.819)
-
-
-
-
-
-
18.3 Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Closing Balance (III+IV+V…+XVI+XVII+XX) 135.000
31.866
-
-
57.693
-
201.880
213
80.571
-
-
-
-
-
- 507.223
I.
Opening Balance
(5.II.11) 135.000
31.866
-
-
44.138
-
199.770
- 104.107
-
-
-
-
-
- 514.881
Changes during the period
II.
Increase / Decrease related to merger -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
III.
Marketable securities value increase fund
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
IV.
Hedging (Effective portion)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4.1
Cash-flow hedge
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4.2
Hedge of net investment in foreign operations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
V.
Tangible assets revaluation differences -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VI.
Intangible assets revaluation differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VII.
Bonus shares obtained from associates, subsidiaries
and jointly controlled entities (Joint Vent.)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VIII. Foreign exchange differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
IX.
Disposal of assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
X.
Reclassification of assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XI.
Effect of change in equities of associates
on bank's equity
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XII. Capital increase
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.1 Cash
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.2 Internal sources
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIII. Share issuance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIV. Share cancellation profits
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XV. Effect of inflation on paid-in capital
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVI. Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVII. Net profit for the perod
-
-
-
-
-
-
-
-
2.087
-
-
-
-
-
-
2.087
XVIII. Profit distribution -
-
-
-
13.541
-
305
- (104.107)
-
-
-
-
-
- (90.261)
18.1 Dividends distributed -
-
-
-
-
-
- (90.261)
-
-
-
-
-
- (90.261)
18.2 Transfers to reserves
-
-
-
-
13.541
-
305
- (13.846)
-
-
-
-
-
-
18.3 Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Closing Balance (III+IV+V…+XVI+XVII+XX) 135.000
31.866
-
-
57.679
-
200.075
-
2.087
-
-
-
-
-
- 426.707
Current Period - 1 January 2014
Bonus Shares
Obtained from
Marketable Tangible and
Associates,
Effect of
Current
Prior Securities
Intangible
Subs and
Inflation
Inflation
Share
Period
Period
Value
Assets
Jointly
on Paid in on Paid in
ShareCancellation
Legal
Status Extraordinary
Other Net Profit / Net Profit /
Increase Revaluation
Controlled Hedging
Prior Period - 1 January 2013
Note
Capital
Capital Premiums
Profits
Reserves
Reserves
Reserves
Reserves
Loss
Loss
Fund Differences
Entities Reserves
V.STATEMENT OF CHANGES IN EQUITY
Statement of Changes in Equity
for the Year Ended 31 December 2014
Deutsche Bank
Annual Report 2014
61
62
Deutsche Bank
Annual Report 2014
Statement of Cash Flows for the Year Ended 31 December 2014
VI. STATEMENT OF CASH FLOWS
Note
Current period
A.
CASH FLOWS FROM BANKING OPERATIONS
(5)
1.1
Operating profit before changes in operating assets and liabilities
64.095
1.1.1 Interests received
230.529
1.1.2 Interests paid
(76.564)
1.1.3 Dividend received
-
1.1.4 Fees and commissions received
58.802
1.1.5 Other income
51.564
1.1.6 Collections from previously written-off loans and receivables
-
1.1.7 Payments to personnel and service suppliers
(31.378)
1.1.8 Taxes paid
(22.314)
1.1.9 Others
(5.VI.1) (146.544)
1.2
Changes in operating assets and liabilities
353.037
1.2.1 Net (increase) decrease in financial assets held for trading
208.719
1.2.2 Net (increase) decrease in financial assets valued at fair
value through profit or loss
-
1.2.3 Net (increase) decrease in due from banks and other
financial institutions
(143.087)
1.2.4 Net (increase) decrease in loans
(183.341)
1.2.5 Net (increase) decrease in other assets
(23.145)
1.2.6 Net increase (decrease) in bank deposits
(290.867)
1.2.7 Net increase (decrease) in other deposits
378.691
1.2.8 Net increase (decrease) in funds borrowed
563.661
1.2.9 Net increase (decrease) in matured payables
-
1.2.10 Net increase (decrease) in other liabilities
(5.VI.1)
(157.594)
I.
Net cash used from banking operations
417.132
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
Net cash used in investing activities
(2.387)
2.1
Cash paid for purchase of associates, subsidiaries
and joint-ventures
-
2.2
Cash obtained from sale of associates, subsidiaries
and joint-ventures
-
2.3
Purchases of tangible assets
(5.I.12)
(537)
2.4
Sales of tangible assets
-
2.5
Cash paid for purchase of financial assets available-for-sale -
2.6
Cash obtained from sale of financial assets available-for-sale
-
2.7
Cash paid for purchase of investments held-to-maturity
-
2.8
Cash obtained from sale of investments held-to-maturity
-
2.9
Others (5.I.13)
(1.850)
C. CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net cash used in financing activities
(268)
-
3.1
Cash obtained from funds borrowed and securities issued
-
3.2
Cash used for repayment of funds borrowed and securities issued
-
3.3
Equity instruments issued
-
3.4
Dividends paid
(5.V.5) (268)
3.5
Payments for financial leases
-
3.6
Others
-
IV.
Effect of change in foreign exchange rate on cash and
cash equivalents
(5.VI.1)
20.284
V.
Net increase in cash and cash equivalents
434.761
VI.
Cash and cash equivalents at beginning of period (5.VI.3)
420.485
VII.
Cash and cash equivalents at the end of period
(5.VI.3)
855.246
Prior period
(9.571)
147.508
(25.551)
68.100
153.148
(22.605)
(10.353)
(319.818)
375.671
(167.648)
(57.450)
(521.977)
(12.626)
270.727
(108.495)
836.782
136.358
366.100
(1.930)
(390)
(1.540)
(90.261)
(90.261)
6.098
280.007
140.478
420.485
Deutsche Bank
Annual Report 2014
63
Statement of Profit Distribution for the Year Ended 31 December 2014
VII. STATEMENT OF PROFIT DISTRIBUTION
Current period (*)
Prior period
31 December 2014
31 December 2013
I.
DISTRIBUTION OF CURRENT YEAR INCOME
1.1 CURRENT YEAR INCOME
102.039
4.132
1.2 TAXES AND DUTIES PAYABLE
(21.468)
(2.045)
1.2.1 Corporate tax (Income tax)
(22.890)
(3.850)
1.2.2 Income witholding tax
-
(**)
1.422
1.805
1.2.3 Other taxes and duties A.
NET INCOME FOR THE YEAR (1.1-1.2) 80.571
2.087
1.3 PRIOR YEARS LOSSES (-)
-
1.4 FIRST LEGAL RESERVES (-)
-
14
1.5 OTHER STATUTORY RESERVES (-)
-
B.
NET INCOME AVAILABLE FOR DISTRIBUTION [(A-(1.3+1.4+1.5)]
80.571
2.073
1.6 FIRST DIVIDEND TO SHAREHOLDERS (-)
-
268
1.6.1 To owners of ordinary shares
-
268
1.6.2 To owners of preferred shares
-
1.6.3 To owners of preferred shares (pre-emptive rights)
-
1.6.4 To profit sharing bonds
-
1.6.5 To holders of profit and loss sharing certificates
-
1.7 DIVIDENDS TO PERSONNEL (-)
-
1.8 DIVIDENDS TO BOARD OF DIRECTORS (-)
-
1.9 SECOND DIVIDEND TO SHAREHOLDERS (-)
-
-
-
-
-
-
1.10 SECOND LEGAL RESERVES (-)
-
1.11 STATUTORY RESERVES (-) -
1.12 GENERAL RESERVES
-
1.805
1.13 OTHER RESERVES -
1.14 SPECIAL FUNDS
-
II.
DISTRIBUTION OF RESERVES
2.1 APPROPRIATED RESERVES
-
2.2 SECOND LEGAL RESERVES (-)
-
2.3 DIVIDENDS TO SHAREHOLDERS (-)
-
-
-
-
-
-
2.4 DIVIDENDS TO PERSONNEL (-)
-
2.5 DIVIDENDS TO BOARD OF DIRECTORS (-)
-
III.
EARNINGS PER SHARE
3.1 TO OWNERS OF ORDINARY SHARES
0,0597
0,0015
3.2 TO OWNERS OF ORDINARY SHARES (%)
5,97
0,15
3.3 TO OWNERS OF PRIVILAGED SHARES
-
3.4 TO OWNERS OF PRIVILAGED SHARES (%)
-
IV.
DIVIDEND PER SHARE
4.1 TO OWNERS OF ORDINARY SHARES
-
4.2 TO OWNERS OF ORDINARY SHARES (%)
-
4.3 TO OWNERS OF PRIVILAGED SHARES
-
4.4 TO OWNERS OF PRIVILAGED SHARES (%)
-
(*)
As of the date of this report the decision of profit distribution in the current year has not been made since the General
Assembly meeting has not conducted yet.
(**)
According to BRSA circular numbered BDDK.DZM.2/13/1-a-3 and dated 8 December 2004 net deferred tax income is not
subjected to profit distribution and capital increase.
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64
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
1. Basis of presentation
1.a Disclosures on the preparation of financial statements and its explanatory notes in accordance with the Turkish
Accounting Standards and the Regulation on Accounting Applications for Banks and Safeguarding of Documents
As prescribed in the Article 37 of the Banking Act No. 5411, the Bank prepares its financial statements and underlying
documents in accordance with the “Regulation on the Procedures and Principles for Accounting Practices and Retention of
Documents by Banks” and Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”), their
explanations and interpretations (together “Reporting Standards”).
The financial statements have been prepared in TL, under the historical cost basis as modified in accordance with inflation
adjustments until 31 December 2004, except for the financial assets and liabilities which are carried at fair value.
The preparation of financial statements in conformity with TAS requires the use of certain critical accounting estimates by
the Bank management to exercise its judgment on the assets and liabilities of the balance sheet and contingent issues as of
the balance sheet date. These estimates are being reviewed regularly and, when necessary, suitable corrections are made
and the effects of these corrections are reflected to the income statement. The explanation on the impairment of intangible
assets, one of the most important assumptions and estimations of the Bank, is presented below Note XIII.
1.b Accounting policies and measurement
The accounting policies and valuation principles applied in the preparation of these financial statements and valuation
principles are defined and applied in accordance with TAS. Those accounting policies and valuation principles are
explained in Notes II to XXIX below.
1.c Additional paragraph for convenience translation into English
As explained in Section 3 Note I, the accompanying financial statements differ from International Financial Reporting
Standards (“IFRS”) issued by the International Accounting Standards Board with respect to the application of inflation
accounting and also for certain reclassification requirement of the POA/BRSA. Accordingly, the accompanying financial
statements are not intended to present the financial position and results of operations in accordance with IFRS.
II. Basis of presentatiton of financial statements
The accounting rules and the valuation principles used in the preparation of the financial statements were implemented as
stated in the Reporting Standards.
Comments and changes on standards
New standards and interpretations not yet adapted in 31 December2014
Except for the new standards summarised below, the accounting policies applied for the year ended 31 December 2013
have been applied consistently for the year ended 31 December 2014 in preparing these financial statements.
• TFRS 9 Financial Instruments (see note (i))
i. Financial Instruments
TFRS 9 Financial Instruments was published in April 2010 introducing new requirements as part of the project to replace
TAS 39 Financial Instruments: Recognition and Measurement.
TFRS 9 Financial Instruments, published on 27 April 2010 in the Official Gazette numbered 27564 and briefly summarized
below introducing new requirements as part of the project to replace TAS 39 Financial Instruments: Recognition and
Measurement had been published by the International Accounting Standards Board in November 2009.
TFRS 9 aims to reduce complexity in accounting for financial instruments and introduce a principles-based approach to
accounting for financial instruments. The principles-based approach to accounting for financial assets, as a result of the first
phase of the TFRS 9, aims to provide information that is useful and relevant for users of financial statements in predicting
uncertainties, timing and amounts of future cash flows by allowing users to use their own judgment. TFRS 9 introduces two
measurement categories for financial assets: fair value through profit or loss and amortised cost.
Deutsche Bank
Annual Report 2014
65
The distinction between the two models is based on the business model of each entity and nature of the contractual cash
flows of the financial assets. Entities will continue to apply the existing impairment and hedge accounting requirements
in TAS 39. TFRS 9 is applicable to annual reporting periods beginning on or after 1 January 2018 and early adoption is
permitted. The Bank does not plan to adopt this standard early and it is not expected that these amendments will have
significant impact on the.
III.Explanations on strategy of using financial instruments and foreign currency transactions
The main operations of the Bank are, interbank money market transactions, purchasing and selling marketable securities,
foreign currency transactions and providing collateralised cash, non-cash loans and custody services.
The Bank’s main funding sources are equity, deposit and borrowings from domestic and foreign financial institutions.
Bank’s assets mainly consist of placements in banks, reverse repo transactions, corporate loans and marketable securities
portfolio held for trading.
The purchasing and selling of the capital market instruments are the main activity of the Bank that generates earnings
over the average earnings of all of the operation segments of the Bank. The off-balance sheet items are mostly comprised
of forward foreign currency purchases/sales transactions, letter of credits and letter of guarantees extended against cash
borrowings from foreign financial institutions.
Foreign currency risk, interest rate risk and liquidity risk are daily measured and monitored and the asset-liability
management is performed within the internal risk limits and legal limits.
The Bank has no foreign currency available for sale financial instruments.
The Bank has no investments in foreign associates.
IV. Information related to investments in associates and subsidiaries
The Bank has no investments in associates and subsidiaries.
V. Explanations on forward, options and other derivative transactions
In accordance with the Turkish Accounting Standard 39 (TAS 39) “Financial Instruments: Recognition and Measurement”;
the forward foreign currency purchases/sales transactions and swap transactions, which are not considered as hedging
instruments, are classified as trading derivative instruments. A provision is made for the diminution in value of the
impaired financial asset and it is charged against the income for the year.
“Financial assets at fair value through profit or loss” are measured at fair value. If the fair value of derivative financial
instruments is positive, it is disclosed under the main account “Financial assets at fair value through profit or loss” in
“Trading derivative financial instruments” and if the fair value difference is negative, it is disclosed under “Trading
derivative financial liabilities”. Differences in the fair value of trading derivative instruments are accounted under “Trading
income/loss” in the income statement.
The fair values of the trading forward foreign currency purchases/sales transactions are measured with the internal pricing
models by taking the expectations from the market into account. The change in the fair values is recorded through the
period’s profit or loss.
The Bank records the spot legs of its currency swap transactions either on its balance sheet accounts or on it’s off balance
sheet accounts together with its forward currency transactions by taking the maturity dates of those transactions.
The Bank has no derivative financial instruments designated as hedging instruments or embedded derivative financial
instruments.
VI. Explanations on interest income and expenses
Interest income and expenses are recognised in the income statement on an accrual basis by using the effective interest
method.
The Bank ceases accruing interest income on non-performing loans and, any interest income accruals from such loans are
reversed and no income is accounted until the collection is made according to the related regulation.
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66
VII. Explanations on fee and commission income and expense
Commissions received for various banking services are recorded when they are collected and other income and expense
items are recorded on an accrual basis. Fees and commissions paid or received loan fees and commission, expense/
income considered as transaction cost and recognized according to effective interest rate methods. Income derived from
agreements and asset purchases and custodian transactions made on behalf of third parties are recognised as income
when they are realised.
VIII. Explanation on financial assets
The Bank classifies and accounts its financial assets as “Fair value through profit or loss”, “Available-for-sale”, “Loans and
receivables” or “Held-to-maturity”. The appropriate classification of financial assets of the Bank is determined at the time
of purchase by the Bank management, taking into consideration the purpose of holding the investment.
The purchase and sale transactions of those financial instruments are recognised and derecognised according to their
“Delivery dates”. The fair value differences between the transaction date and the delivery date of financial assets and
liabilities at fair value through profit or loss and financial assets available for sale are recorded.
a. Financial assets at fair value through profit or loss
Financial assets, classified as “Financial assets at fair value through profit or loss”, are trading financial assets and are
either acquired for generating profit from short-term fluctuations in the price or dealer’s margin, or are financial assets
included in a portfolio in which a pattern of short-term profit making exists independent from the acquisition purpose.
Trading financial assets are initially recognised at fair value and are subsequently re-measured at their fair value. However,
if fair values cannot be obtained from the fair market transactions, it is accepted that the fair value cannot be measured
reliably and that the financial assets are carried at “amortised cost” using the effective interest method.
All gains and losses arising from these evaluations are recognised in the income statement. Interest earned from trading
financial assets is reported as interest income and dividends received are included separately in dividend income.
Derivative financial instruments are treated as trading financial assets unless they are not designated as hedge instruments.
The principles regarding the accounting of derivative financial instruments are explained in detail in Note V of the related
section.
The difference between the cost values and fair values of the financial assets at fair value through profit or loss, is recorded
as accrued interest income or allowance for the impairment loss.
b. Loans and receivables
Loans and receivables are financial assets which are created by providing money, services or goods to a debtor. Loans
and receivables originated by the Bank are carried initially at cost and subsequently recognised at the amortised cost
value calculated using the effective interest method. The expenses incurred for the assets received as collateral are not
considered as transaction costs and are recognised in the expense accounts.
The Bank provides general and specific provisions based on the assessments and estimates of the management, by
considering the “Communiqué Related to Principles and Procedures on Determining the Qualifications of Banks’ Loans and
Other Receivables and the Provision for These Loans and Other Receivables” published in the Official Gazette No. 26333
dated 1 November 2006. In this context, the revised credit risk, general structure of the current loan portfolio, financial
structure of the customers, non-financial information and economic conjuncture on the basis of the prudence principle are
taken into consideration by the Bank in determining the estimates.
Provision expenses are deducted from the net income of the year. If there is a collection from a receivable that is
provisioned previously, the amount is deducted from the “Specific Provisions” account and recorded as income to
“Provision for Loan Losses and Other Receivables”. Uncollectible receivables are written-off after all the legal procedures
have been finalised.
Cash loans in Turkish Lira are comprised of the foreign currency indexed loans, export guaranteed loans, fund resourced
loans and cash loans in foreign currency are comprised of the export loans and operating loans.
Foreign currency indexed loans are followed under the TL accounts by translating its original amount to TL by using the
historical foreign exchange rate of its opening date. Repayments are calculated with the foreign exchange rate on the
payment date and the incurred foreign exchange gains/losses are recorded through the period’s profit or loss.
Deutsche Bank
Annual Report 2014
67
c. Held-to-maturity financial assets
The Bank has no held-to-maturity financial assets.
d. Available-for-sale financial assets
The Bank has no available-for-sale financial assets.
IX. Explanations on impairment of financial assets
Financial asset or group of financial assets are reviewed at each reporting date to determine whether there is objective
evidence of impairment. If any such indication exists, the Bank estimates the amount of impairment.
Impairment losses occurs if, and only if, there is an objective evidence that the expected future cash flows of financial asset
or group of financial assets are adversely affected by an event(s) (“loss event(s)”) incurred subsequent to recognition. The
losses expected to incur due to future events are not recognised even if the probability of loss is high.
X. Explanations on offsetting financial assets
The Bank provides allowance for the impairment losses on the financial assets at fair value through profit or loss, when the
fair values are less than their carrying values. This allowance is netted from the carrying value of the related financial assets
group on the balance sheet.
The Bank provides specific provisions for loans and other receivables in accordance with the related regulations. This
allowance is offset from the carrying value of the loans and receivables on the balance sheet.
Except for the matters explained above are offset and the net amount is reported in the balance sheet when the Bank has
a legally enforceable right to offset the recognised amounts and there is an intention to collect/pay related financial assets
and liabilities on a net basis, or to realise the asset and settle the liability simultaneously.
XI. E
xplanations on sales and repurchase agreements and securities lending transactions
Securities subject to repurchase agreements (“Repo”) are classified as “Financial assets at fair value through profit or
loss”, “Available-for-sale” and “Held-to-maturity” according to the investment purposes of the Bank and measured
according to the portfolio to which they belong. Funds obtained from repurchase agreements are accounted under “Funds
Provided under Repurchase Agreements” in liabilities and the difference between the sale and repurchase price is accrued
over the life of repurchase agreements using the effective interest method.
Funds given against securities purchased under agreements (“Reverse repo”) to resell are accounted under “Receivables
from Reverse Repurchase Agreements” on the balance sheet. The difference between the purchase and determined resell
price is accrued over the life of repurchase agreements using the “effective interest method”. The Bank has no securities
lending transactions. As of 31 December 2014, the Bank has TL 550.169 reverse repo transaction (31 December 2013: None).
XII. Explanations on assets held for resale and discontinued operations
There are no assets held for resale and discontinued operations as of 31 December 2014 and 31 December 2013.
XIII. Explanations on goodwill and other intangible assets
There are no goodwill and other intangible assets as of 31 December 2014 and 31 December 2013.
Intangible assets are measured at cost on initial recognition and any directly attributable costs of setting the asset to work
for its intended use are included in the initial measurement. Subsequently, intangible assets are carried at historical costs
after the deduction of accumulated amortisation and the provision for value decreases, if any.
Intangible assets are impaired when the book value exceeds the recoverable amount. Impairment indicates that losses
may be realised. When the indicators are present the Bank makes estimation on the recoverable amount. If there are no
indicators of impairment there is no need for the recoverable amount estimation.
68
Deutsche Bank
Annual Report 2014
Intangibles are amortised over their estimated useful lives using the straight-line method. The useful life of the asset is
determined by assessing the expected useful life of the asset, technical, technological and other kinds of obsolescence and
all required maintenance expenses necessary to utilise the economic benefit of the asset.
The Bank’s intangible assets consist of rights and custody services acquired by the Bank on July 2007 (customer
relationship). The intangible assets are amortised over their useful lives on a straight line basis. The amortisation method
and the useful lives of the intangible assets are reassessed regularly at each year end. Rights and the customer relationship
are amortised with straight line method over 5 and 10 years, respectively.
XIV. Explanations on property and equipment
The property and equipment acquired before 31 December 2004 are recorded at restated historical costs in accordance with
inflation accounting and subsequent additions to 31 December 2004 are recorded at their historical purchase costs.
The property and equipments are depreciated over their estimated useful lives on a straight-line basis.
If the recoverable amounts of the tangible assets are different than their restated net book values, the Bank records other
income in the income statement or other expense or equity to be added to capital.
Expenditures for the repair and renewal of property and equipment are recognised as expense. The capital expenditures
made in order to increase the capacity of the tangible asset or to increase its future benefits are capitalised on the cost of
the tangible asset. The capital expenditures include the cost components which are used either to increase the useful life or
the capacity of the asset, or the quality of the product or to decrease the costs.
There are no restrictions such as pledges, mortgages or any other restrictions on the property and equipment as of 31
December 2014 and 31 December 2013.
There are no changes in the accounting estimates that would have significant effects in the current period or in the
following periods.
Depreciation rates and the estimated useful lives of tangible assets are as follows:
Motor Vehicles
Office Machinery
Furnitures and fixtures
5 years
3 - 5 years
5 - 15 years
XV. Explanations on leasing transactions
Maximum length of the finance lease contracts is 4 years. The leased assets are classified under tangible assets and
depreciated over their useful lives with the rate of 20%. The payables related with those finance lease agreements are
recorded under “Lease payables” on the liability side of the balance sheet. The incurred interest expenses and foreign
exchange differences are recorded through the income statement.
In case of the annulment of the operational lease contracts before its expiration date, the cash paid penalties are recognised
as expense in the related period. There are no operational lease contracts which are annulled by the Bank before its
expiration date.
Transactions regarding operational lease agreements are accounted on an accrual basis in accordance with the terms of the
related contracts.
The Bank, does not perform any finance lease transactions as “Lessor’’.
XVI. Explanations on provisions and contingent commitments
Provisions and contingent liabilities except for the specific and general provisions recognised for loans and other
receivables are accounted in accordance with the “Turkish Accounting Standard for Provisions, Contingent Liabilities and
Contingent Assets” (“TAS 37”).
Deutsche Bank
Annual Report 2014
69
Provisions are recognised when the Bank has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable
estimate of the amount of the obligation can be made. The provision for contingent liabilities arising from past events
should be recognised in the same period of occurrence in accordance with the “Matching principle”. When the amount of
the obligation cannot be estimated and there is no possibility of an outflow of resources from the Bank, it is considered that
a “Contingent” liability exists and it is disclosed in the related notes to the financial statements.
XVII. Explanations on contingent assets
The contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow
of economic benefits to the Bank. If an inflow of economic benefits to the Bank has become probable, then the contingent
asset is disclosed in the footnotes to the financial statements. If it has become virtually certain that an inflow of economic
benefits will arise, the asset and the related income are recognised in the financial statements of the period in which the
change occurs.
XVIII. Explanations on obligations related to employee rights
In accordance with the existing Turkish Labor Law, the Bank is required to make lump-sum termination indemnities to each
employee who has completed one year of service with the Bank and whose employment is terminated due to retirement or
for reasons other than resignation or misconduct and this amount is limited by the termination imdentiy upper limit.
Employee severance indemnities are not subject to legal funding requirements.
The provision has been calculated by estimating the present value of the future probable obligation of the Bank arising
from the retirement of employees. TAS 19 requires actuarial valuation methods to be developed to estimate the
enterprise’s obligation under defined benefit plans. Accordingly, assumptions on discount rate, expected rate of salary
increase and employee turnover rate is used in the calculation of the total liability. These assumptions are reviewed on an
annual basis.
XIX. Explanations on taxation
Current tax
Many clauses of Corporate Tax Law No. 5520 which are valid starting from 1 January 2006, came into effect after being
published in Official Gazette No. 26205, dated 21 September 2006. According to the New Tax Law, the corporate tax rate
in Turkey is payable at the rate of 20% for 2014 (2013: 20%). The corporate tax rate is calculated on the total income of the
Bank after adjusting for certain disallowable expenses, exempt income and other allowances. No further tax is payable
unless the profit is distributed.
Dividends paid to non-resident corporations, which have a place of business in Turkey or to resident corporations are
not subject to withholding tax. Otherwise, dividends paid are subject to withholding tax at the rate of 15%. An increase in
capital via issuing bonus shares is not considered as profit distribution and thus does not incur withholding tax.
Corporations are required to pay advance corporate tax quarterly at a rate of 20% on their corporate income. Advance tax is
declared by the 14th and paid by the 17th day of the second month following each calendar quarter end. Advance tax paid
by corporations which is for the current period is credited against the annual corporation tax calculated on their annual
corporate income in the following year. Despite the offset, if there is temporary prepaid tax remaining, this balance can be
refunded or used to offset any other financial liabilities to the government.
A 75% portion of the capital gains derived from the sale of equity investments and immovable properties held for at least
two years is tax exempt, if such gains are added to paid-in capital or held in a special account under shareholder’s equity
for five years.
Under the Turkish Corporate Tax Law, losses can be carried forward to offset against future taxable income for up to five
years. Losses cannot be carried back to offset profits from previous periods.
In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Tax returns are required to be
filled and delivered to the related tax office until the evening of the 25th of the fourth month following the balance sheet
date. Tax returns are open for five years from the beginning of the year following the date of filing during which period the
tax authorities have the right to audit tax returns, and the related accounting records on which they are based, and may
issue re-assessments based on their findings.
Deutsche Bank
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70
Deferred tax
According to the Turkish Accounting Standard 12 (TAS 12) “Income Taxes”; deferred tax assets and liabilities are
recognized on all taxable temporary differences arising between the carrying values of assets and liabilities in the financial
statements and their corresponding balances considered in the calculation of the tax base, except for the differences not
deductible for tax purposes and initial recognition of assets and liabilities which affect neither accounting nor taxable profit.
If transactions and events are recorded in the income statement, then the related tax effects are also recognised in the
income statement. However, if transactions and events are recorded directly in the shareholders’ equity, the related tax
effects are also recognised directly in the shareholders’ equity.
The deferred tax assets and liabilities presented on the financial statements by net basis (off-set).
Transfer pricing
The Article No. 13 of the Corporate Tax Law describes the issue of transfer pricing under the title of “disguised profit
distribution” by way of transfer pricing. “The General Communiqué on Disguised Profit Distribution by Way of Transfer
Pricing” published at 18 November 2007, explains the application related issues on this topic.
According to this Communiqué, if the taxpayers conduct transactions like purchase and sale of goods or services with the
related parties where the prices are not determined according to the arm’s length principle, then it will be concluded that
there is a disguised profit distribution by way of transfer pricing. Such disguised profit distributions will not be deducted
from the corporate tax base for tax purposes.
XX. Explanations on funds borrowed
Trading and derivative financial liabilities are valued with their fair values and the other financial liabilities are carried at
“amortised cost” using the effective interest method.
The Bank utilises various hedging techniques to mitigate the currency, interest rate and liquidity risks of its financial
liabilities. No convertible bonds have been issued by the Bank.
XXI. Explanations on shares certificates issued
There is no issued share certificates for the period ended at 31 December 2014.
XXII. Explanations on bills of exchange and acceptances
As of 31 December 2014, the Bank has no bills of exchange and acceptances.
XXIII. Explanations on government grants
As of 31 December 2014, the Bank has no government grants.
XXIV. Explanations on profit reserves and profit distributions
Retained earnings as per the financial statements other than legal reserves are available for distribution, subject to the legal
reserve requirement referred to below.
Under the Turkish Commercial Code (“TCC”) the legal reserves are composed of first and second reserves. The TCC
requires first reserves to be 5% of the profit until the total reserve equals to 20% of issued and fully paid-in share capital.
Second reserves are required to be 10% of all cash profit distributions that are in excess of 5% of the issued and fully paidin share capital. However holding companies are exempt from this application. According to the Turkish Commercial Code,
legal reserves can only be used to compensate accumulated losses and cannot be used for other purposes unless they
exceed 50% of paid-in capital.
Retained earnings except legal reserves are allowed for distribution on the condition being subjected to legal reserve
requirement as mentioned above. Deferred tax income can not be subjected to profit distribution.
Deutsche Bank
Annual Report 2014
71
XXV. Explanations on earnings per share
Earnings per share disclosed in the income statement are calculated by dividing net profit/(loss) for the year to the
weighted average number of shares outstanding during the period concerned.
Current Period
Prior Period
Net Profit For the Year
80.571
2.087
Weighted Average Number of Issued Ordinary Shares
1.350.000.000
1.350.000.000
Total (Full TL)
0,0597
0,0015
In Turkey, companies can increase their share capital by making a pro-rata distribution of shares (“bonus shares”)
to existing shareholders from retained earnings. For the purpose of earnings per share computations, the weighted
average number of shares outstanding during the year has been adjusted in respect to bonus shares issued without a
corresponding change in resources by giving them a retroactive effect for the year in which they were issued and for each
earlier period.
XXVI. Explanations on related parties
For the purpose of these financial statements, shareholders, key management personnel and board members together with
their families and companies controlled by/affiliated with them, and associated companies are considered and referred to
as related parties in accordance with “Turkish Accounting Standard for Related Parties” (“TAS 24”). The transactions with
related parties are disclosed in detail in Note VII of Section Five.
XXVII. Explanations on cash and cash equivalents
For the purposes of the statement of cash flows, “Cash” includes cash, effectives, cash in transit, purchased cheques
and demand deposits including balances with the Central Bank; and “Cash equivalents” include interbank money market
placements, trading securities and time deposits at banks with original maturity periods of less than three months.
XXVIII. Explanations on segment reporting
Operational segment is distinguishable section of the Bank that has different characteristics from other operational
segments per earning and conducts the presentation of service group, associated bank products or a unique product.
Operating segments are disclosed in Note X in Section Four.
XXIX. Reclassifications
In order to be consistent with the presentation of financial statements dated 31 December 2014, there are some
reclassifications made on balance sheet and income statement as of and for the year ended 31 December 2013.
Accounting policies of financial statements dated 31 December 2014 applied consistently to all of the periods presented and
there has not been any reclassifications made in the comparative financial statements as at the end of the reporting period.
Deutsche Bank
Annual Report 2014
72
SECTION FOUR
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK
I. Explanations on Capital Adequacy Ratio
As of 31 December 2014 the Bank’s capital adequacy ratio is 28,39%. (31 December 2013: 24,81%)
1. Risk measurement methods in calculation of capital adequacy ratio
Capital adequacy ratio is calculated within the scope of the “Regulation on Measurement and Assessment of Capital
Adequacy Ratios of Banks (the “Regulation”)”, “Regulation on Credit Risk Mitigation Techniques” and “Regulation on
Calculation of Risk Weighted Amounts for Securitisations” published in the Official Gazette no.28337 dated 28 June 2012
and came into effect on 1 July 2012. The “Regulation on Equities of Banks” published in the Official Gazette no.26333 dated
1 November 2006.
In the calculation of capital adequacy ratio, the data prepared from accounting records in compliance with the current
legislation are used. Furthermore, the market and operational risk are also taken into account within the framework of
regulations.
In the calculation process of credit risk, asset types determined in 6th article of the Regulation, ratings and credit risk
mitigators are taken into account. “Simple financial collateral approach” is taken into account for banking book items.
The amount subject to credit risk for non cash loans are considered by using the conversion rates which are defined in the
5th article of “Regulation On Measurement And Evaluation Of Capital Adequacy Of Banks”. Depleted and amortized assets
are taken into consideration by net amounts which are calculated by the deduction of depreciation cost and provisions. The
items which are deducted from shareholders’ equity and trading book items are not considered in the calculation of risk
weighted assets.
As per the Article 5 of the Regulation, the “counterparty credit risk” is calculated for repurchase transactions, reverse
repurchase transactions and securities. In the calculations regarding counterparty credit risk, for the trading account “
Comprehensive Financial Guarantee Method” is used.
Deutsche Bank
Annual Report 2014
73
2. Information related to capital adequacy ratio
As of 31 December 2014:
Risk weights
0%
10%
20%
50%
75%
100%
150%
200%
Weighted Credit Risk
Risk classifications:
Conditional and unconditional exposures
to central governments or
central banks
576.550
-
-
-
-
-
-
to regional governments or local
authorities
-
-
-
-
-
-
-
to administrative bodies and
non-commercial undertakings
-
-
-
-
-
-
-
Conditional and unconditional exposures to
multilateral development banks
-
-
-
-
-
-
-
international organisations
-
-
-
-
-
-
-
banks and brokerage houses
-
- 231.429
66.874
-
12.836
181
corporates -
-
-
-
- 1.194.717
-
Conditional and unconditional retail
exposures -
-
-
-
1.319
-
-
secured by real estate property
-
-
-
-
-
-
-
Past due items -
-
-
-
-
-
-
Items in regulatory high-risk categories -
-
-
-
-
-
-
Exposures in the form of bonds secured
by mortgages -
-
-
-
-
-
-
Securitisation positions -
-
-
-
-
-
-
Short term exposures to banks, brokerage
houses and corporates -
-
-
-
-
-
-
Exposures in the form of collective
investment undertakings -
-
-
-
-
-
-
Other receivables
366
-
-
-
-
7.254
-
Total balance subject to credit risk
576.916
- 231.429
66.874
1.319 1.214.807
181
Value at credit risk
-
-
46.286
33.437
989 1.214.807
272
The Regulation on “Measurement and Assessment of the Capital Adequacy of Banks” published in the Official Gazette
numbered 28337 on 28 June 2012. “Summary information related to the capital adequacy standard ratio”, “Information
related to the shareholders’ equity” and “Information related to the shareholders’ equity” stated in second paragraph of the
article no.7 of the Communiqué on Financial Statements to be Publicly Announced and the Related Policies and Disclosures
have been amended by the communiqué published in Official Gazette No. 28983 dated 26 April 2014. The Bank has been
calculating its equity in accordance with the “Communiqué on shareholders’ equity” published in Official Gazette No.
28756 dated 5 September 2013 since 1 January 2014; and capital adequacy standard ratios are also calculated within this
context.
i.Summary information related to capital adequacy ratio
Current Period
Capital Requirement for Credit Risk (Amount subject to Credit Risk*0,08) (CRCR)
103.663
Capital Requirement for Market Risk (CRMR)
17.548
Capital Requirement for Operational Risk (CROR)
21.573
Shareholders’ Equity
506.701
Shareholders’ Equity/((CRCR+CRMR+CROR) *12,5)*100
28,39
Core Capital /(( CRCR+CRMR+CROR) *12,5)*100)
27,48
Tier I Capital/(( CRCR+CRMR+CROR) *12,5)*100)
28,23
Prior Period
96.676
14.019
22.890
414.277
24,81
-
Deutsche Bank
Annual Report 2014
74
ii. Information about equity items
TIER 1 CAPITAL
Current Period
Paid-in Capital to be Entitled for Compensation after All Creditors
166.866
Share Premium Share Cancellation Profits Legal Reserves 259.573
Other Comprehensive Income according to TAS 213
Profit 80.571
Net Current Period Profit 80.571
Prior Period Profit Provisions for Possible Losses Bonus Shares from Associates, Subsidiaries and Joint-Ventures not Accounted in Current Period’s Profit Minority Shareholder
507.223
Tier I Capital Before Deductions
Deductions From Tier I Capital
Current and Prior Periods' Losses not Covered by Reserves, and Losses Accounted under Equity according to TAS (-) 129
Leasehold Improvements on Operational Leases (-)
3.318
Goodwill and Intangible Assets and Related Deferred Tax Liabilities (-)
Net Deferred tax assets / liabilities (-)
Shares Obtained against Article 56, Paragraph 4 of the Banking Law (-)
Investments in own common equity (-)
Total of Net Long Positions of the Investments in Equity Items of Banks and Financial Institutions where the
Bank does not own 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital (-)
Bank owns 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital (-)
Mortgage Servicing Rights Exceeding the 10% Threshold of Tier I Capital (-)
Net Deferred Tax Assets arising from Temporary Differences Exceeding the 10% Threshold of Tier I Capital(-)
Amount Exceeding the 15% Threshold of Tier I Capital as per the Article 2, Clause 2 of the Regulation on
Measurement and Assessment of Capital Adequacy Ratios of Banks (-)
The Portion of Net Long Position of the Investments in Equity Items of Banks and Financial Institutions where the
Bank Owns 10% or more of the Issued Share Capital not deducted from Tier I Capital (-)
Mortgage Servicing Rights not deducted (-)
Excess Amount arising from Deferred Tax Assets from Temporary Differences (-)
Other items to be Defined by the BRSA (-)
Deductions from Tier I Capital in cases where there are no adequate Additional Tier I or Tier II Capitals (-)
3.447
Total regulatory adjustments to Tier 1 capital 503.776
Deutsche Bank
Annual Report 2014
75
ADDITIONAL CORE CAPITAL
Current Period
Preferred Stock not Included in Tier I Capital and the Related Share Premiums
Debt Instruments and the Related Issuance Premiums Defined by the BRSA
(Issued or Obtained after 1.1.2014)
Debt Instruments and the Related Issuance Premiums Defined by the BRSA (Issued or Obtained before 1.1.2014)
Additional Core Capital before Deductions
Deductions from Additional Core Capital
Direct and Indirect Investments of the Bank on its own Additional Core Capital (-)
Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital (-)
The Total of Net Long Position of the Direct or Indirect Investments in Additional Tier I Capital of Banks and Financial
Institutions where the Bank Owns more than 10% of the Issued Share Capital (-)
Deductions from Additional Core Capital in cases where there are no adequate Tier II Capital (-)
Total Deductions from Additional Core Capital Total Additional Core Capital Deductions from Core Capital
Goodwill and Other Intangible Assets and Related Deferred Taxes not deducted from Tier I Capital as per the
Temporary Article 2, Clause 1 of the Regulation on Measurement and Assessment of
Capital Adequacy Ratios of Banks (-)
13.272
Net Deferred Tax Asset/Liability not deducted from Tier I Capital as per the Temporary Article 2, Clause 1 of the
Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks (-)
Total Core Capital
490.504
TIER II CAPITAL
Debt Instruments and the Related Issuance Premiums Defined by the BRSA (Issued or Obtained after 1.1.2014) Debt Instruments and the Related Issuance Premiums Defined by the BRSA (Issued or Obtained before 1.1.2014)
Pledged Assets of the Shareholders to be used for the Bank's Capital Increases
General Provisions Tier II Capital before Deductions
Deductions from Tier II Capital
Direct and Indirect Investments of the Bank on its own Tier II Capital (-) Total of Net Long Positions of the Investments in Equity Items of Banks and Financial Institutions where the
Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital (-)
The Total of Net Long Position of the Direct or Indirect Investments in Additional Core Capital and Tier II Capital of
Banks and Financial Institutions where the Bank Owns 10% or more of the Issued Share Capital Exceeding the
10% Threshold of Tier I Capital (-)
Total Deductions from Tier II Capital
Total Tier II Capital
16.197
16.197
-
16.197
Deutsche Bank
Annual Report 2014
76
CAPITAL
Current Period
Loans Granted against the Articles 50 and 51 of the Banking Law (-)
506.701
Net Book Values of Movables and Immovables Exceeding the Limit Defined in the Article 57, Clause 1 of the
Banking Law and the Assets Acquired against Overdue Receivables and Held for Sale but Retained more
than Five Years (-)
Loans to Banks, Financial Institutions (domestic/foreign) or Qualified Shareholders in the form of Subordinated Debts or
Debt Instruments Purchased from Such Parties and Qualified as Subordinated Debts (-)
Deductions as per the Article 20, Clause 2 of the Regulation on Measurement and Assessment of Capital
Adequacy Ratios of Banks (-)
The Portion of Total of Net Long Positions of the Investments in Equity Items of Banks and Financial Institutions where the
Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital not deducted from
Tier I Capital, Additional Core Capital or Tier II Capital as per the Temporary Article 2, Clause 1 of the Regulation (-)
The Portion of Total of Net Long Positions of the Investments in Equity Items of Banks and Financial Institutions where the
Bank Owns more than 10% of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital not deducted
from Additional Core Capital or Tier II Capital as per the Temporary Article 2, Clause 1 of the Regulation (-)
The Portion of Net Long Position of the Investments in Equity Items of Banks and Financial Institutions where the Bank
Owns 10% or more of the Issued Share Capital, of the Net Deferred Tax Assets arising from Temporary Differences and of
the Mortgage Servicing Rights not deducted from Tier I Capital as per the temporary Article 2, Clause 2, Paragraph (1) and
(2) and Temporary Article 2, Clause 1 of the Regulation (-)
EQUITY
506.701
Amounts lower than Excesses as per Deduction Rules
Remaining Total of Net Long Positions of the Investments in Equity Items of Banks and Financial Institutions where the
Bank Owns 10% or less of the Issued Share Capital
Remaining Total of Net Long Positions of the Investments in Tier I Capital of Banks and Financial Institutions
where the Bank Owns more than 10% or less of the Tier I Capital Remaining Mortgage Servicing Rights
Net Deferred Tax Assets arising from Temporary Differences
The Bank
Amount considered in the
calculation of equity of current period
Total Amount
Goodwill and Intangible Assets and Related Deferred Tax Liabilities (-)
3.318
16.590
Details on Subordinated Liabilities
There are no debt instruments will be included in the calculation of the Bank's equity as of 31 December 2014 (31 December
2013: None).
Deutsche Bank
Annual Report 2014
77
Prior Period
CORE CAPITAL
Paid-in capital
135.000
Nominal capital
135.000
Capital commitments (-)
Adjustment to paid-in capital
31.866
Share premium
Share repeal
Legal reserves
257.754
Adjustment to legal reserves
Profit
2.087
Net Current period profit
2.087
Prior period profit
Provisions for possible losses up to 25% of core capital
Profit on sale of associates, subsidiaries and buildings
Primary subordinated loans
Loss that is not covered with reserves (-)
Net current period loss
Prior period loss
Development cost of operating lease (-)
235
Intangible assets (-)
27.028
Deferred-assets for tax which exceeds 10% of core capital (-)
Excess amount expressed in the Law (Article 56, 3rd paragraph) (-)
Total Core Capital
399.444
SUPPLEMENTARY CAPITAL
General reserves
14.833
45% of increase in revaluation fund of movables
45% of increase in revaluation fund of fixed assets
Free shares from investment and associates, subsidiaries and joint ventures that is not recognized in profit
Primary subordinated loans which are ignored in the calculation of core capital
Secondary subordinated loans
45% of value increase fund of financial assets available for sale and associates and subsidiaries
Adjustment to paid-in capital, profit reserves and previous years losses(except adjustment to legal reserves)
Total Suplementary Capital
14.833
CAPITAL
DEDUCTIONS FROM THE CAPITAL
Partnership share on banks and financial institutions (domestic and abroad) that are not consolidated, with a shareholding
of 10% and above
The sum of partnership share on banks and financial institutions (domestic and abroad), with shareholding of less than
10%, but exceeding 10% and more of the sum of core and suplimentary capital of the bank
Loans extended to banks, financial institutions (domestic and abroad) and qualified shareholders, like secondary
subordinated loan and debt instruments purchased from these institutions issued, like primary and secondary subordinated
loan
Loans extended being noncompliant with articles 50 and 51 of the Law
Net book values of properties owned, exceeding 50% of banks’ equity and properties, and trade goods overtaken in
exchange for loans and receivables that should be disposed within five years in accordance with article 57 of the Law, but
not yet disposed
Securitisation positions to be deducted from the shareholders' equity
Other
Total Equity
414.277
78
Deutsche Bank
Annual Report 2014
iii.Information on the Bank’s internal capital requirements within the scope of the internal capital adequacy assessment
process in order to evaluate the adequacy of the approach in terms of current and future activities
The Bank evaluates the interrelated components that are the part of The Bank’s management and decision making process
such risk appetite, strategy, capital and risk management policy and stress testing within the process of internal capital
adequacy evaluation for the risks that the Bank was exposed or may be exposed accordingly current risk profile. The
Bank formed the internal capital adequacy evaluation process within the framework risk management and strategy, risk
management processes, risk methods and risk infrastructure on the purpose of observing the current, future and under
stress conditions capital adequacy of the Bank’s and measuring, managing,observing and reducing the subjected risks
relating to evaluate the significant risks exposed. Under this framework, the Bank performs base-case and stress test
estimations by determining the risks faced including structural position risk, business, credit, group, liquidity, market,
operational, regulations and credibility risks considering growth targets of all business lines, strategic plans, sections
provides support service. Within the scope of this evaluation, the Bank uses like Pillar 2A of Internal Capital Requirement
Evaluation, Pillar 2B of Stress Test and Reverse Stress Test methods.
II. Explanations on credit risk
Loan customers are subject to the concentration risk limits according to their geographical segments, risk groups, or
sectors approved by the Board of Directors. In compliance with the banking legislations the Bank does not work with the
untrustworthy individuals and corporate, which are listed in the international watch lists.
Credit limit allocation and credit extension procedures, forward transactions and the transactions related with the other
derivative instruments, the limits and the risk exposures of the daily cash transactions of the customers are approved
by the different level of people from the Bank’s management team according to their related authorisation limits. The
risk limits and concentrations of the daily on and off balance sheet transactions are monitored per each customer by the
authorised people of the treasury department of the Bank.
The credit risk of the forward transactions is managed with the potential risks arising from the fluctuations in the market
and it is avoided from the transactions that could have significant credit risks.
The credit worthiness of customer is followed up on a regular basis in accordance with related regulations and accordingly
the credit limits of the customers are revised, if necessary. Statement documents received for loans that are audited in
accordance with regulations is consequential.
The Bank, as an active player in the international banking market, does not hold significant credit risk when compared to
the financial activities of the other international financial institutions.
The Bank’s cash loan portfolio is composed of 64 customers and non-cash loan portfolio is composed of 138 customers as
of 31 December 2014 (31 December 2013: 53 of cash loan portfolio and 112 of non-cash loans portfolio).
The share of Bank’s cash and non-cash loans from first top 100 loan customers in total cash and non-cash loan portfolio is
100% (31 December 2013: 100%).
Total cash and non-cash loans of first 100 customers constitute 37% and 0.40% of total balance sheet and the off-balance
sheet items, respectively.( 31 December 2013 : 39% and %0.36 )
The Bank’s calculated general provision for credit risk amounting to TL 18.477 as of 31 December 2014 (31 December 2013:
TL 14.833).
a) Type of loans and specific provisions
Factoring
31 December 2014
Corporate
Consumer
Receivables
Standard Loans
Loans under close monitoring
Non-performing loans
Specific provision (-)
Total
1.090.556
-
-
-
1.090.556
201
-
-
-
201
-
-
-
-
-
Total
1.090.757
1.090.757
79
Deutsche Bank
Annual Report 2014
Factoring
31 December 2013
Corporate
Consumer
Receivables
Standard Loans
Loans under close monitoring
Non-performing loans
Specific provision (-)
Total
903.971
-
-
-
903.971
58
-
-
-
58
-
-
-
-
-
Total
904.029
904.029
b) Loans and receivables past due but not impaired
None (31 December 2012: None).
c) Debt securities, treasury bills and other bills
Financial
Available for
Held to
Assets at Fair Sale Financial Maturity
31 December 2014
Value through P/L (Net)
Assets (Net)
Securities (Net)
Total
Moody’s 578.215
-
-
578.215
Baa2(*)
Total
578.215
-
-
578.215
Financial
Available for
Held to
Assets at Fair Sale Financial Maturity
31 December 2013
Value through P/L (Net)
Assets (Net)
Securities (Net)
Total
Moody’s Ba2(*)
797.082
-
-
797.082
Total
797.082
-
-
797.082
(*)
Consists of Turkish Republic government bonds and treasury bills.
d) Information on rating concentration
The Bank does not have any credit rating policy.
e) Fair value of collaterals (loans and advances to customers)
Guarantees received as at 31 December 2014 are presented in “Credit Risk Mitigation Techniques” disclosure.
f)Credit risk is the risk reduction effects without taking into consideration the total amount of exposures after offsetting
transactions with different risk classes according to the types and amounts of disaggregated risks are listed below the
average for the period
Current Period Average Risk
Risk Amount (*)Amount(**)
Conditional and unconditional exposures to central governments or central banks
534.344
456.756
Conditional and unconditional exposures to regional governments or local authorities
-
Conditional and unconditional exposures to administrative bodies and non-commercial undertakings
-
Conditional and unconditional exposures to multilateral development banks
-
Conditional and unconditional exposures to international organisations
-
Conditional and unconditional exposures to banks and brokerage houses
289.933
377.772
Conditional and unconditional exposures to corporates 1.258.308
1.189.074
Conditional and unconditional retail exposures 1.319
916
Conditional and unconditional exposures secured by real estate property
-
Past due items -
Exposures in the form of bonds secured by mortgages -
Short term exposures to banks, brokerage houses and corporates -
Exposures in the form of collective investment undertakings -
Other receivables
7.620
7.831
(*)
Includes risk amounts given before the effect of credit risk mitigation but after the credit conversions.
Average risk amounts are the arithmetical average of the risk amounts after conversion in January-December period.
(**)
Deutsche Bank
Annual Report 2014
80
Prior Period Average Risk
Risk Amount (*)Amount (**)
Conditional and unconditional exposures to central governments or central banks
232.208
234.986
Conditional and unconditional exposures to regional governments or local authorities
-
Conditional and unconditional exposures to administrative bodies and non-commercial undertakings
-
Conditional and unconditional exposures to multilateral development banks
-
-
Conditional and unconditional exposures to banks and brokerage houses
505.549
339.598
Conditional and unconditional exposures to corporates 934.395
796.595
103.159
-
Past due items -
Other receivables
14.080
11.129
(*)
Average risk amounts are the arithmetical average of the risk amounts after conversion in January-December period.
(**)
g) Profile of significant exposures in major regions
Conditional and unconditional Conditional and
exposures to unconditional
Conditional
Conditional
centra
exposures to and
and
governments banks and unconditional unconditional
or central brokerage exposures to retail
Other
31 December 2014
banks
houses
corporates exposures to receivables
Total
1. Domestic
534.344
102.522
1.191.982
1.319
7.620 1.837.787
2. European Union (EU) countries
-
110.789
40.564
-
- 151.353
3. OECD countries (**)
-
-
-
-
-
4. Off-shore banking regions
-
48
163
-
-
211
5. USA, Canada
-
51.637
15.885
-
-
67.522
6. Other countries
-
24.937
9.714
-
-
34.651
7. Associates, subsidiaries and joint ventures -
-
-
-
-
8. Unallocated assets / liabilities (***) -
-
-
-
-
Total(*)
534.344
289.933
1.258.308
1.319
7.620 2.091.524
OECD countries other than EU countries, USA and Canada
(***)
Assets and liabilities that can not be allocated on a consistent basis
(*)
(**)
Deutsche Bank
Annual Report 2014
81
Conditional and
unconditional Conditional and
exposures to
unconditional ConditionalConditional
centra
exposures to
and
and
governments
banks and unconditional unconditional
or central
brokerage exposures to
retail
Other
31 December 2013
banks
houses
Total
1. Domestic
232.208
297.604
867.955
119.943
14.080 1.531.790
2. European Union (EU) countries
-
139.234
39.838
-
- 179.072
3. OECD countries (**)
-
13.087
1.922
-
-
15.009
4. Off-shore banking regions
-
-
155
-
-
155
5. USA, Canada
-
49.276
19.142
-
-
68.418
6. Other countries
-
6.348
5.383
-
-
11.731
7. Associates, subsidiaries and joint ventures -
-
-
-
-
-
-
-
-
-
8. Unallocated assets / liabilities (***) Total(*)
232.208
505.549
934.395
119.943
14.080 1.806.175
OECD countries other than EU countries, USA and Canada
(***)
Assets and liabilities that can not be allocated on a consistent basis
(*)
(**)
h) Risk profile according to sectors and counterparties
Conditional and unconditional Conditional and
exposures to unconditional
Conditional
Conditional
centra
exposures to and
and
governments banks and unconditional unconditional
or central brokerage exposures to retail
Other
31 December 2014
banks
houses
Total
Agriculture
-
-
10.806
-
-
10.806
Farming and raising livestock
-
-
10.806
-
-
10.806
Forestry
-
-
-
-
-
Fishing
-
-
-
-
-
Manufacturing
-
-
862.451
775
- 863.226
Mining
-
-
58.739
-
-
58.739
Production
-
-
803.550
775
- 804.325
Electric, gas and water
-
-
162
-
-
162
Construction
-
-
10.352
-
-
10.352
Services
533.518
187.827
363.150
261
- 1.084.756
Wholesale and retail trade
-
-
89.815
18
-
89.833
Hotel, food and beverage servicesi
-
-
-
-
-
Transportation and telecommunication
-
-
59.535
243
-
59.778
Financial institutions
533.518
187.827
203.817
-
- 925.162
Real estate and renting services
-
-
-
-
-
Self-employement services
-
-
-
-
-
Education services
-
-
-
-
-
Health and social services
-
-
9.983
-
-
9.983
Other
826
102.106
11.549
283
7.620 122.384
Total(*)
534.344
289.933
1.258.308
1.319
7.620 2.091.524
(*)
82
Deutsche Bank
Annual Report 2014
Conditional and
unconditional Conditional and
exposures to
unconditional
Conditional
Conditional
centra
exposures to
and
and
governments
banks and unconditional unconditional
or central
brokerage exposures to
retail
Other
31 December 2013
banks
houses corporates exposures to receivables
Total
Agriculture
-
-
6.237
-
-
6.237
-
-
6.237
-
-
6.237
Forestry
-
-
-
-
-
Fishing
-
-
-
-
-
Manufacturing
-
-
478.556
37.662
- 516.218
Mining
-
-
160
-
-
160
Production
-
-
478.156
37.662
- 515.818
-
-
240
-
-
240
Construction
-
-
10.150
-
-
10.150
Services
228.365
505.549
433.176
82.228
- 1.249.318
-
-
273.826
81.948
- 355.774
Hotel, food and beverage services
-
-
-
-
-
-
-
40.701
280
-
40.981
228.365
505.549
118.649
-
- 852.563
-
-
-
-
-
-
-
-
-
-
Education services
-
-
-
-
-
-
-
-
-
-
Other
3.843
-
6.275
54
14.080
24.252
232.208
505.549
934.394
119.944
14.080 1.806.175
Total(*)
(*)
i)Distribution of maturity risk factors according to their outstanding maturities
Current Period
1 month
to central governments or central banks
487.663
to banks and brokerage houses
67.893
to corporates
377.612
Conditional and unconditional
retail exposures 320
Other receivables
-
(*)
933.488
Total (*)
Term to maturity
3-6 months 6-12 months
Over 1 year
Total
-
-
-
-
487.663
35.261
17.661
63.804
3.489
188.108
483.397
138.620
196.531
62.076
1.258.236
95
-
518.753
74
-
156.355
238
-
260.573
592
-
66.157
1.319
1.935.326
Prior Period
1 month
to central governments or central banks 198.262
to banks and brokerage houses
501.758
to corporatesr
383.888
Conditional and unconditional
retail exposures 96.128
Other receivables
-
1.180.036
Total(*)
(*)
1-3 months
1-3 months
Term to maturity
3-6 months 6-12 months
Over 1 year
Total
-
-
-
-
198.262
-
-
-
-
501.758
164.515
27.363
213.998
-
789.764
15.971
-
180.486
228
-
27.591
1.282
-
215.280
-
-
-
113.609
1.603.393
83
Deutsche Bank
Annual Report 2014
j) Information on risk classifications
According to the 7th article of the Communiqué on “Measurement and Assessment of Capital Adequacy of Banks”, in
the process of risk weighted assets calculation, risk weights are determined through ratings given by internatiol rating
companies.
The international risk ratings are used for the exposures to central governments and central banks, whereas for central
governments and central banks that are not rated by Fitch Ratings, the published country ratings as announced by the
Organisation for Economic Cooperation and Development (OECD) are used. If exist, the ratings of Standart&Poor’s (S&P),
Moody’s and Fitch Ratings are used together for the exposures of the foreign banks and brokerage houses. Where the
counterparties are domestic, the related exposures are included in the calculation of capital adequcy as unrated.
TL exposures of Central Government of Turkey and Central Bank of Turkey and all reserve requirement balances have 0%
risk weight.
The Fitch Ratings, Moody’s and Standart&Poor’s risk ratings as per the credit quality grades and the risk weights according
to exposure categories are presented below:
Ratings to match
Long-term Credit Rating
Short-Term Credit Rating
Credit Quality
Grades
1
2
3
4
5
6
1
2
3
4
5
6
Fitch
AAA and AA-
A+ and A-
BBB+ and BBB-
BB+ and BB-
B+ and B-
CCC+ and below
F1+ and F1
F2
F3
F3 and below
-
-
Moody’s
Aaa and Aa3
A1 and A3
Baa1 and Baa3
Ba1 and Ba3
B1 and B3
Caa1 and below
P-1
P-2
P-3
NP
-
-
Standart & Poor’s
AAA and AAA+ and ABBB+and BBBBB+ and BBB+ and BCCC+ and below
A-1+ and A-1
A-2
A-3
A-3 below
-
k) Risk amount based on risk weight
Risk Weight (*)
Deductions
Risk Weight
0% 10%
20%
50%
75%
100%
150% From Equity
1. Exposures Before Credit
Risk Mitigation
534.713
-
273.633
3.283
1.319
1.278.397
181
3.447
2. Exposures After Credit
Risk Mitigation
576.916
-
231.429
66.874
1.319
1.214.807
181
3.447
(*)
The Bank does not have risk weighted balances neither 200% nor 1.250%
Deutsche Bank
Annual Report 2014
84
l) Information according to sector and counterparty types
Loans
31 December 2014
Impaired
Past due Value adjustments(**)
Provisions
Agriculture
-
-
105
-
-
105
Forestry
-
-
-
Fishing
-
-
-
Manufacturing
-
-
6.211
Mining
-
-
-
Production
-
-
6.205
-
-
6
Construction
-
-
61
Services
-
-
12.098
-
-
6.635
-
-
-
-
-
704
-
-
4.608
-
-
-
-
-
-
Education services
-
-
-
-
-
151
Other
-
-
2
Total -
-
18.477
(**)
Represents general provisions.
Loans
31 December 2013
Impaired
Past due Value adjustments(*)
Provisions
Agriculture
-
-
62
-
-
62
Forestry
-
-
-
Fishing
-
-
-
Manufacturing
-
-
5.922
Mining
-
-
-
Production
-
-
5.921
-
-
1
Construction
-
-
41
Services
-
-
8.638
-
-
4.034
-
-
-
-
-
805
-
-
3.799
-
-
-
-
-
-
Education services
-
-
-
-
-
-
Other
-
-
170
Total -
-
14.833
(*)
Represents general provisions.
Deutsche Bank
Annual Report 2014
85
m) Information about value adjustments and provisions
Impaired loans; are the credits that either overdue more than 90 days as of the reporting date or are treated as impaired
due to their credibility. For such credits, “specific provisons” are allocated as per the Provisioning Regulation. The Bank
does not have impaired loans as at the reporting date.
Past due loans; are the credits that overdue upto 90 days but not impaired. For such credits, “general provisions” are
allocated as per the Provisioning Regulation. The Bank does not have past due loans as at the reporting date.
Opening
Provisions for Provision
Other
Closing
31 December 2014
balance
the period reversals adjustments
balance
1. Specific provisions
-
-
-
-
2. General provisions
14.833
3.644
-
-
18.477
Opening
Provisions for
Provision
Other
Closing
31 December 2013
balance
the period reversals adjustments
balance
1. Specific provisions
-
-
-
-
2. General provisions
8.408
6.425
-
-
14.833
III. Explanations on Market Risk
The Bank calculates market risk by using “Standard Method” on a monthly basis.
Being exposed to market risk, the Bank’s Board of Directors has identified risk management strategies and policies and
has pursued the implementation of these strategies periodically. Considering the existing major risks, the Bank’s Board of
Directors determines and revises the risk limits, when necessary. The Board of Directors ensures that the risk management
group and the executive management are taking necessary actions in identifying, measuring, monitoring and managing the
various risks that the Bank exposes to.
The Bank performs daily stress testing related with the asset-liability management and Deutsche Bank AG performs the
‘VAR’ analysis.
The market risk exposed positions are transferred to the global market with the most appropriate market prices for each
assets and liabilities. The global markets prepare the daily market yield curves which are used as reference prices for such
transfers.
The capital requirement for the general market risk and specific risks is calculated using the standard method in accordance
with the “Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks” and reported monthly.
a) Information related to market risk
31 December 2014
(I) Capital Requirement against General Market Risk - Standard Method
13.272
(II) Capital Requirement against Specific Risks - Standard Method
Capital Requirement against Specific Risks of Securitisation Positions - Standard Method (III) Capital Requirement against Currency Position Risk - Standard Method 3.916
(IV) Capital Requirement against Commodity Risks - Standard Method
(V) Capital Requirement against Clearing Risks - Standard Method
(VI) Capital Requirement against Market Risks of Options - Standard Method
(VII) Capital Requirement against Counterparty Credit Risks - Standard Method
360
(VIII) Capital Requirement against Market Risks of Banks applying Risk Measurement
(IX) Total Capital Requirement against Market Risk (I+II+III+IV+V+VI+VII)
17.548
(X) Value-At-Market Risk ((12.5*VIII) or (12.5*IX))
219.350
86
Deutsche Bank
Annual Report 2014
b) Average market risk calculated during the period at month ends
Interest rate risk
Share risk
Currency risk
Commodity risk
Settlement risk
Options risk
Counterparty Credit Risk (*)
Amount subject to total risk (*)
Average
8.788
-
3.289
-
-
-
2.023
176.252
Current Period
Maximum
13.654
-
4.042
-
-
-
17.061
350.832
Minimum
2.092
-
2.595
-
-
-
360
72.830
Average
11.774
-
2.992
-
-
-
1.240
200.380
Prior Period
Maximum
20.673
-
6.636
-
-
-
2.846
294.548
Minimum
6.085
863
439
143.510
Counterparty credit risk includes the current and prior periods between January-December.
c)Quantitative information on counterparty risk
As per the 21st article of the “Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks”,
counterparty risk is calculated over the following trading book transactions:
a) Over-the-counter derivative financial instruments and credit derivatives,
b) Securities or commodity based securities included in the trading books or commodity borrowing or lending transactions
and repurchase and reverse repurchase agreements.
The Bank calculates counterparty credit risk by using “Valuation on Fair Value” method and risk amounts from this method
are used in calculations.
Total Risk
Amount Weighted Amount Interest rate contracts (*)
580.357
1.249
Foreign exchange rate contracts (**)
7.900
3.248
Commodity contracts
-
Equity shares related contracts
-
Other -
Gross positive fair values
3.466
3.466
Offsetting benefits
-
Net current exposure amount
-
Collaterals received
-
Net derivative position
7.900
3.248
(*)
Consist of repurchase transactions.
Consist of currency swaps and forward agreements.
(**)
IV. Operational risk
In the calculation of the Bank’s operational risk, the “Basic Indicator Method” is used. The amount subject to operational
risk is calculated once a year in accordance with the Regulation on “Measurement and Assessment of the Capital Adequacy
of Banks” published in the Official Gazette numbered 28337 on 28 June 2012. In the Basic Indicator Method, the amount
subject to operational risk is calculated by multiplying 15% of the Bank’s average gross revenue over the previous three
years with 12,5. The amount subject to operational risk is TL 269.661 for the current period.
87
Deutsche Bank
Annual Report 2014
Total / Number
of years for
which gross
income
31.12.2011
31.12.2012
31.12.2013 is positive Rate (%)
Total
Gross Income
117.652
216.591
97.214
143.819
15
21.573
Amount subject to operational risk
(Total*12,5)
269.661
V. Explanations on currency risk
The Bank manages its foreign currency balance sheet by paying maximum attention to comply with the regulations of the
public authorities and by selecting the most appropriate methods to the Bank’s liquidity and profitability policies.
The position limit regarding the foreign currency risk is determined as parallel to the net foreign currency position standard
rate. As of 31 December 2014, the Bank’s net ‘on balance sheet’ foreign currency long position amounting to TL 63.573,
net ‘off-balance sheet’ foreign currency long position amounting to TL 23.838, while this net foreign currency long position
amounting to TL 39.735.
“Standard method’’, which is also used for the statutory reporting purposes, is used to measure the Bank’s foreign
currency risk .
The Bank’s effective exchange rates on the date of 31 December 2014 and 2013 and for the last five working days of the
period announced by the Bank in TL are as follows:
25 December 2013 26 December 2013 29 December 2013 30 December 2013 31 December 2013
25 December 2013 26 December 2013 29 December 2013 30 December 2013 31 December 2013
USD
2,3209
2,3177
2,3182
2,3235
2,3189
CHF
2,3492
2,3589
2,3447
2,3504
2,3397
GBP
3,6005
3,5933
3,5997
3,6090
3,5961
EUR
2,8312
2,8368
2,8255
2,8339
2,8207
USD
2,0812
2,0710
2,0957
2,1604
2,1343
CHF
2,3194
2,3111
2,3337
2,4307
2,3899
GBP
3,3978
3,3735
3,4286
3,5601
3,5114
EUR
2,8466
2,8353
2,8693
2,9844
2,9365
The arithmetical average of the Bank’s main foreign currency purchase rates for the last 30 days before the balance sheet
date are listed below:
Monthly average purchase rate
Current Period
Prior Period
USD
2,2893
2,0457
CHF
2,3420
2,2713
GBP
3,5730
3,3339
EUR
2,8224
2,7926
a) Exposure to foreign currency risk
A 10 percent depreciation of the TL against the following currencies as at 31 December 2014 and 31 December 2013 would
have increased or decreased equity and profit or loss (excluding tax effects) by the amounts shown below. This analysis
assumes that all other variables, in particular interest rates, remain constant.
USD
EUR
Other foreign currencies
Total, net
(*)
Equity includes profit/loss effect.
Current Period
Prior Period
(*)
(*)
Equity
Income Statement
Equity Income Statement
4.340 4.3405.442 5.442
(394)
(394)
1.732
1.732
27
27
121
121
3.973
3.973
7.295
7.295
Deutsche Bank
Annual Report 2014
88
b) Information on currency risk of the Bank
Current Period
Euro
USD
Other FC
Total
Assets
Cash (Cash in Vault, Effectives, Cash in Transit, Cheques
Purchased) and Balances with Central Bank of Turkey
172
487.712
-
487.884
Banks 4.355
2.705
6.501
13.561
Financial Assets at Fair Value Through Profit or Loss
-
-
-
Interbank Money Market Placements
-
-
-
Available-for-sale Financial Assets
-
-
-
350.500
347.788
-
698.288
Loans and Receivables (*)
Investments in Associates, Subsidiaries and Joint Ventures
-
-
-
Held-to-maturity Financial Assets
-
-
-
Derivative Financial Assets Held for Risk Management
-
-
-
Tangible Assets
-
-
-
Intangible Assets
-
-
-
Other Assets (***)
52.075
43.731
24
95.830
Total Assets
407.102
881.936
6.525
1.295.563
Liabilities
Bank Deposits
649
-
-
649
Foreign Currency Deposits
58.516
214.099
63
272.678
Funds From Interbank Money Market
-
-
-
Funds Borrowed From Other Financial Institutions
705.371
231.197
-
936.568
Marketable Securities Issued
-
-
-
Miscellaneous Payables
3
203
-
206
Derivative Financial Liabilities Held for Risk Management
-
-
-
Other Liabilities (***)
19.999
1.468
422
21.889
Total Liabilities 784.538
446.967
485
1.231.990
Net On-Balance Sheet Position
(377.436)
434.969
6.040
63.573
Net Off-Balance Sheet Position (**)
420.839
(438.908)
(5.769)
(23.838)
Derivative Assets
502.775
101.477
9.009
613.261
Derivative Liabilities
81.936
540.385
14.778
637.099
Non-Cash Loans (****)
114.054
68.790
190
183.034
Prior Period
Total Asset
376.499
406.560
1.686
784.745
Total Liabilities
646.645
95.010
476
742.131
Net On-Balance Sheet Position
(270.146)
311.550
1.210
42.614
Net Off-Balance Sheet Position
324.568
(294.232)
-
30.336
Derivative Assets
551.703
566.349
2.447
1.120.499
Derivative Liabilities
227.135
860.581
2.447
1.090.163
Non-Cash Loans (****)
109.468
54.397
81
163.946
The loans balances amounting to TL 158.966 includes the foreign exchange loans.
Indicates the net amount of derivative financial assets and liabilities. Spot foreign exchange buy and sell transactions
shown under “Asset purchase commitments” in the financial statements are included in the “Net off-balance position”.
Derivative financial assets and liabilities include accruals amounting to TL 3.467 and TL 3.192, respectively.
(***)
Accruals from spot foreign exchange buy and sell transactions are not included in “Other Assets” and “Other
Liabilities”. Income and expense accruals from spot foreign exchange buy and sell transactions are TL 89 income and TL 73
expense accrual, respectively. Foreign currency prepaid expenses amounting to TL 1.153 is excluded from other assets.
(****)
There is no impact on net off-balance sheet position.
(*)
(**)
Deutsche Bank
Annual Report 2014
89
VI. Explanations on Interest Rate Risk
The interest rate sensitivity of assets, liabilities and off-balance sheet items are evaluated quarterly at Asset-Liability
Committee meetings.
The Bank’s interest rate risk is measured by using the standard method. The Bank provides information to its main
shareholder Deutsche Bank AG for their, Value at Risk (VAR), risk measurement methods and performs sensitivity analyses.
Standard method measurements are performed monthly by using the maturity distribution.
At the time of the computations on daily basis sensitivity analysis, interest rate risk of FC and TL trading securities and
available for sale financial assets as well as placements and forwards are measured in the Bank’s portfolio.
1.Interest rate sensitivity of assets, liabilities and off balance sheet items
(Based on repricing dates)
Non-
Up to 1
1-3
3-12
1-5 5 Years Interest
Current Period Ended
Month Months
Months
Years and Over
Bearing
Total
Assets
Cash and Balances with the Central
Bank of Turkey
45.929
-
-
-
-
488.029
533.958
Banks 21.068
-
-
-
-
14.142
35.210
Financial Assets at Fair Value through
Profit/Loss
90.509
34.804
24.217
426.682
2.003
3.467
581.682
Money Market Placements
550.169
-
-
-
-
-
550.169
Available-for-Sale Financial Assets
-
-
-
-
-
-
354.106 385.935
350.716
-
-
- 1.090.757
Held-to-Maturity Financial Assets
-
-
-
-
-
-
Other Assets (*)
-
-
-
-
-
130.071
130.071
Total Assets
1.061.781 420.739
374.933
426.682
2.003
635.709 2.921.847
Liabilities
Bank Deposits
-
-
-
-
-
123.666
123.666
Other Deposits 172.623
-
-
-
384.455
557.078
Money Market Funds
31.283
-
-
-
-
-
31.283
Miscellaneous Payable
-
-
-
-
-
2.521
2.521
Securities Issued -
-
-
-
-
-
Funds Borrowed
731.779 624.354
282.125
-
-
- 1.638.258
Other Liabilities (**)
-
-
-
-
-
569.041
569.041
Total Liabilities
935.685 624.354
282.125
-
- 1.079.683 2.921.847
On Balance Sheet Long Position
126.096
-
92.808
426.682
2.003
-
601.660
On Balance Sheet Short Position
- (203.615)
-
-
- (443.974)
(601.660)
Off-Balance Sheet Long Position
631.710
51.639
112.459
-
-
-
795.808
Off-Balance Sheet Short Position
625.249
51.433
112.664
-
-
-
789.346
Total Position
132.557 (203.409)
92.603
426.682
2.003 (443.974)
6.462
Tangible assets amounting to TL 2.042, intangible assets amounting to TL 20.013, current tax asset amounting to TL 827
and other assets amounting to TL 107.189 are presented in the other assets.
(**)
Equity amounting to TL 507.223, provisions amounting to TL 48.443, other liabilities amounting to TL 3.141, derivative
instruments held for trading amounting to TL 3.192 and tax liabilities amounting to TL 7.042 are presented in the other
liabilities.
(*)
Deutsche Bank
Annual Report 2014
90
Non
Up to 1
1-3
5-12
1-5
5 Years Interest
Prior Period Ended
Month
Months
Months
Years and Over
Bearing
Total
Assets
Cash and Balances with the Central Bank
of Turkey
-
-
-
-
-
228.523
228.523
Banks 307.252
-
-
-
-
5.766
313.018
Financial Assets at Fair Value through
Profit/Loss
305.602
21.399
307.737
93.105 69.239
18.937
816.019
-
-
-
-
-
-
-
-
-
-
-
-
363.714 236.352
303.963
-
-
-
904.029
-
-
-
-
-
-
-
-
-
-
-
98.041
98.041
Other Assets(*)
Total Assets
976.568 257.751
611.700
93.105 69.239
351.267 2.359.630
Liabilities
Bank Deposits
-
-
-
-
-
414.533
414.533
Other Deposits 71.339
-
-
-
107.084
178.423
Money Market Funds
187.512
-
-
-
-
-
187.512
-
-
-
-
-
2.167
2.167
Securities Issued -
-
-
-
-
-
Funds Borrowed
754.546 319.477
-
-
-
- 1.074.023
Other Liabilities(**)
-
-
-
-
-
502.972
502.972
Total Liabilities
1.013.397 319.477
-
-
- 1.026.756 2.359.630
On Balance Sheet Long Position
-
-
611.700
93.105 69.239
-
774.044
On Balance Sheet Short Position
(36.829) (61.726)
-
-
- (675.489)
(774.044)
Off-Balance Sheet Long Position
1.305.742 269.140
252.542
-
-
- 1.827.424
Off-Balance Sheet Short Position
1.306.601 268.306
252.313
-
-
- 1.827.220
Total Position
(37.688) (60.892)
611.929
93.105 69.239 (675.489)
204
Tangible assets amounting to TL 2.675, intangible assets amounting TL 27.028 and TL 1.673 current tax asset and other
assets amounting to TL 66.665 are presented in the other assets.
(**)
Equity amounting to TL 426.707, provisions amounting to TL 45.915, other liabilities amounting to TL 3.632, trading
derivative instruments amounting to TL 18.145 TL, current tax liabilities amounting to TL 8.573 are presented in the other
liabilities.
(*)
2.Average interest rates on monetary financial instruments
Current Period EUR %
USD %
JPY %
TL %
Assets
Cash and Balances with the Central Bank of Turkey
-
-
-
1,23
Banks
-
-
-
Financial Assets at Fair Value through Profit/Loss
-
-
-
8,52
-
-
-
11,23
Available-for-Sale Financial Assets (Net)
-
-
-
2,58
2,29
-
10,00
Held-to-Maturity Financial Assets (Net)
-
-
-
Liabilities
Bank Deposits
-
-
-
Other Deposits 0,10
0,10
-
7,33
Money Market Funds
-
-
-
10,05
-
-
-
Securities Issued -
-
-
Funds Borrowed from other Financial Institutions
0,34
0,41
-
9,33
91
Deutsche Bank
Annual Report 2014
Prior Period EUR %
USD %
JPY %
TL %
Assets
Cash and Balances with the Central Bank of Turkey
-
-
-
Banks
-
-
-
6,66
Financial Assets at Fair Value through Profit/Loss
-
-
-
8,70
-
-
-
Available-for-Sale Financial Assets (Net)
-
-
-
2,61
2,44
-
9,08
Held-to-Maturity Financial Assets (Net)
-
-
-
Liabilities
Bank Deposits
-
-
-
Other Deposits 0,10
0,10
-
5,68
Money Market Funds
-
-
-
5,06
-
-
-
Securities Issued -
-
-
Funds Borrowed from other Financial Institutions
0,18
0,38
-
6,75
3. Interest rate risk on banking books
The interest rate risk of the banking books is measured and monitored within the scope of the Regulation about
Measurement and Assessment of Interest Rate Risk in the Banking Accounts by Standard Shock Method.
31 December 2014
Type of Currency
Shock Applied (+/- x basis point)
Gains/
(Losses)
Gains/Equity(Losses)/Equity
TL
(+) 500bp
TL
(-) 400bp
EUR
(+) 200bp
EUR
(-) 200bp
USD
(+) 200bp
USD
(-) 200bp
Total (of positive shocks)
Total (of negative shocks)
6
(6)
780
(835)
(1.256)
1.305
(2.097)
2.091
%0,00
%0,00
%0,15
(%0,17)
(%0,25)
%0,26
(%0,42)
%0,41
31 December 2013
Shock Applied Gains/
Gains/EquityType of Currency
(+/- x bbasis point)
(Losses)
(Losses)/Equity
TL
(+) 500bp
(1.024)
(%0,24)
TL
(-) 400bp
866
%0,20
EUR
(+) 200bp
288
(%0,06)
EUR
(-) 200bp
(16)
%0,00
USD
(+) 200bp
(710)
(%0,16)
USD
(-) 200bp
722
%0,16
Total (of positive shocks)
(1.750)
(%0,47)
Total (of negative shocks)
1.876
%0,37
4. Position risk of equity securities on banking books
None.
VII. Explanations on liquidity risk
The general principles and related implementation methods with respect to liqudity and financial emergency procedures
are determined within the scope of “Deutsche Bank Turkey Liquidity Policy”. The Bank calculates liquidity adequacy ratio
and reports to BRSA on a weekly basis in accordance with the “Measurement and Assessment of Liquidity Adequacy of
Banks” issued in the Official Gazette numbered 26333 and dated 1 November 2006. The liquidity adequacy of the Bank is
over the limit values specified in the mentioned regulation.
92
Deutsche Bank
Annual Report 2014
1.The resources of the current liquidity risk; whether the necessary precautions have been taken, whether the Board of
Directors sets limits on the funds available to meet the urgent liquidity requirements and to be able to pay borrowings
when they become due
Liquidity risk is managed by considering the main criteria such as (1) the expected cash flows at related time intervals, (2)
the possibility and capacity of borrowing from the market, (3) the credit quality of the assets on the balance sheet.
In addition to the compliance with the legal limitations regarding the liquidity, the Bank monitors from the cash flow
reports that there are matching borrowing opportunities with the cash out-flows within the same time interval.
2.The matching of the payments, assets and liabilities and the interest rates, and the possible impact of the current
mismatch on the profitability of the Bank
The Bank’s assets and liabilities carry positive interest earnings. Whether government debt securities which are classified in
trading securities are most liquid securities that are liquidated in changes in market conditions.
3.Internal and external resources that meets the short and long term liquidity needs of the Bank and unutilised significant
liquidity resources
The Bank monitors that the maturity matching of the assets and liabilities are kept. The Bank keeps sufficient liquid assets
to meet liquidity needs caused by the fluctuations in the market.
As per the BRSA Communiqué published on 1 November 2006 and effective from 1 January 2007, “Measurement and
Assessment of the Adequacy of Banks’ Liquidity”, the weekly and monthly liquidity ratios on a bank-only basis for foreign
currency assets/liabilities and total assets/liabilities should be minimum 80% and 100%, respectively. The liquidity ratios as
of 31 December 2014 and 31 December 2013 are as follows:
First Maturity Bracket (Weekly) Second Maturity Bracket (Monthly)
Current Period
FC
FC+TL
FC
FC+TL
Average (%)
105,30
131,65
95,94
117,66
Maximum (%)
132,22
164,57
121,50
157,94
Minimum (%)
84,62
107,08
80,67
100,15
First Maturity Bracket (Weekly) Second Maturity Bracket (Monthly)
Prior Period
FC
FC+TL
FC
FC+TL
Average (%)
114,24
119,44
108,22
114,81
Maximum (%)
150,91
152,41
144,92
154,53
Minimum (%)
84,25
101,21
89,03
100,90
4. The assessment of the amounts and resources of the Bank’s cash flows
As explained above, the Bank has sufficient cash and cash inflows in order to be able to timely meet the cash outflows.
Maturity analysis of residual values of contractual financial liabilities:
Gross
Carrying Nominal Current period
Value Outflow Demand
Bank Deposits
Other Deposits
Funds Borrowed from other
Financial Institutions
Interbank Money Market Funds Miscellaneous Payables
Finance Lease Payables
Total
123.666
557.078
Up to 1
Month
1-3
Months
3-12
Months
1-5 5 Years
Years and Over
123.666
557.112
123.666
384.455
-
172.657
-
-
-
-
-
-
-
1.638.258 1.641.693
31.283
31.283
2.521
2.521
-
-
2.352.806 2.356.275
-
-
2.521
-
510.642
732.153
31.283
-
-
936.093
627.121
-
-
-
627.121
282.419
-
-
-
282.419
-
-
-
-
-
-
93
Deutsche Bank
Annual Report 2014
Gross
Carrying Nominal Prior period
Value Outflow Demand
Bank Deposits
Other Deposits
Interbank Money Market Funds Miscellaneous Payables
Finance Lease Payables
Total
414.533
178.423
414.533
177.621
1.074.023 1.075.856
187.512 187.512
2.167
2.167
-
-
1.856.658 1.857.689
Up to 1
Month
1-3
Months
3-12
Months
-
70.537
-
-
-
-
-
-
-
- 756.257
- 187.512
2.167
-
-
-
523.784 1.014.306
319.599
-
-
-
319.599
-
-
-
-
-
-
-
-
-
-
-
414.533
107.084
1-5 5 Years
Years and Over
The above table shows the undiscounted estimated cash outflows of the financial liabilities in accordance with their
contracts.
Maturity analysis of assets and liabilities according to remaining maturities
Up to 1
1-3
3-12
1-5
5 Years Current period
Demand Months Months Months
Years and Over
Unallocated
Total
Assets
Cash and Balances with the Central
Bank of Turkey 46.221 487.737
-
-
-
-
- 533.958
Banks
14.142
21.068
-
-
-
-
-
35.210
Financial Assets At Fair Value
Through Profit or Loss
-
91.776
894
13.655 445.688
29.669
- 581.682
Interbank Money Market Placements
- 550.169
-
-
-
-
- 550.169
-
-
-
-
-
-
-
- 354.106 385.935 350.716
-
-
- 1.090.757
-
-
-
-
-
-
-
Other Assets (*)
-
283
882
54.144
-
-
74.762 130.071
Total Assets
60.363 1.505.139 387.711 418.515 445.688
29.669
74.762 2.921.847
Liabilities
Bank Deposits
123.666
-
-
-
-
-
- 123.666
Other Deposits
384.455 172.623
-
-
-
- 557.078
Financial Instutions
- 731.779 624.354 282.125
-
-
- 1.638.258
Interbank Money Market Funds
-
31.283
-
-
-
-
-
31.283
Securities Issued
-
-
-
-
-
-
-
Miscellaneous Payables
2.521
-
-
-
-
-
-
2.521
Other Liabilities (**)
40.213
6.193
444
14.968
-
- 507.223 569.041
Total Liabilities
550.855 941.878 624.798 297.093
-
- 507.223 2.921.847
Liquidity (Gap) / Surplus
(490.492) 563.261 (237.087) 121.422 445.688
29.699 (432.461)
Prior Period
Total Assets
36.026 1.589.352 280.166 405.326
48.760 2.359.630
Total Liabilities 561.117 1.027.323 325.359
19.124
-
- 426.707 2.359.630
Liquidity (Gap) / Surplus
(525.091) 562.029 (45.193) 386.202
-
- (377.947)
Tangible assets amounting to TL 2.042, intangible assets amounting to TL 20.013, current tax asset amounting to TL 827
and other assets amounting to TL 107.189 are presented in the other assets.
(**)
Equity amounting TL 507.223, provisions amounting to TL 48.443, other liabilities amounting to TL 3.141, derivative
instruments held for trading amounting to TL 3.192 and tax liabilities amounting to TL 7.042 are presented in the other
liabilities.
(*)
Deutsche Bank
Annual Report 2014
94
Banka’nın türev enstrümanlarının kontrata dayalı vade analizi:
Up to 1
1-3
3-12
1-5
5 years
31 December 2014
month
months
months
years
and over
Total
Derivative instruments held for trading
Foreign exchange derivatives:
1.174.243
103.072
225.123
-
-
1.502.438
- Inflow
587.466
51.639
112.459
-
-
751.564
- Outflow (-)
586.777
51.433
112.664
-
-
750.874
Interest rate derivatives:
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
Derivative instruments held for risk management
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
Total cash inflow
587.466
51.639
112.459
-
-
751.564
Total cash outflow
586.777
51.433
112.664
-
-
750.874
Up to 1
1-3
3-12
1-5
5 years
31 December 2013
month
months
months
years
and over
Total
Derivative instruments held for trading 934.528
537.446
504.855
-
-
1.976.829
467.092
269.140
252.542
-
-
988.774
- Inflow
467.436
268.306
252.513
-
-
988.055
- Outflow (-)
-
-
-
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
Derivative instruments held for risk management
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
Total cash inflow
467.092
269.140
252.542
-
-
988.774
Total cash outflow
467.436
268.306
252.313
-
-
988.055
5. Explanations on securitization positions
None.
6. Credit risk mitigation techniques
The Bank applies credit risk mitigation according to the simple financial collateral method in compliance with the Article 33
of the “Regulation on Credit Risk Mitigation Techniques”.
In the credit risk mitigation, cash and cash equivalent items and high-credit-quality debt instruments are used.
95
Deutsche Bank
Annual Report 2014
Guarantees
31 December 2014
FinancialOther/Physical and Credit
Risk Classification:
Amount (*)
Collaterals
Collaterals Derivatives
Conditional and unconditional exposures to central
governments or central banks
534.344
Conditional and unconditional exposures to regional
governments or local authorities
-
Conditional and unconditional exposures to administrative
bodies and non-commercial undertakings
-
Conditional and unconditional exposures to multilateral development banks -
-
Conditional and unconditional exposures to banks and
brokerage houses
289.933
Conditional and unconditional exposures to corporates 1.258.308
-
Past due items -
Other receivables
7.620
(*)
-
-
-
-
-
-
-
-
-
-
-
-
-
42.205
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
63.591
-
Guarantees
31 December 2013
FinancialOther/Physical and Credit
Risk Classification:
Amount (*)
Collaterals
Collaterals Derivatives
Conditional and unconditional exposures to central
governments or central banks
232.208
Conditional and unconditional exposures to regional
governments or local authorities
-
Conditional and unconditional exposures to administrative bodies and
non-commercial undertakings
-
Conditional and unconditional exposures to multilateral development banks -
-
Conditional and unconditional exposures to banks and
brokerage houses
505.549
Conditional and unconditional exposures to corporates 934.395
-
Past due items -
Other receivables
14.080
(*)
-
-
-
-
-
-
-
-
-
-
-
-
-
47.407
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
64.902
-
Deutsche Bank
Annual Report 2014
96
7. Risk management objective and policies
The aim of the risk management system is to provide the definition, measurement, surveillance and control of the exposed
risks; by means of policies, implementation methods and limits; determined in order that the risk-return structure contained
in the future cash flows of the Bank, and the quality of the related activities and their levels are followed, controlled, and
changed, if needed.
The required policies, methods and limits for the measurement, analysis, reporting and controlling of the defined risks are
determined by the Board of Managers.
In the determination of risk management policies and implementation methods; strategies, policies and implementation
methods regarding the activities of the Bank; the volume, quality and the complexity of the activities; risk strategy and
acceptable level of risk; risk monitoring and managing capacity; past experience and performance; the level of expertise of
the managers of the related units in topics related to their area; and the obligations indicated in the law and other related
legislation; are taken into account.
The adaptation of the risk management policies and procedures to the changing conditions is essential. The Board of
Managers or the related Internal Systems Specialist evaluates the adequacy of these regularly and makes the required
alterations.
Risk management policies and procedures include the utilization of risk reduction techniques like hedging, insurance or
credit derivatives.
The Bank determines written limits for the quantifiable risk such as the credit risk, market risk, interest rate risk and liquidity
risk originating from its activities; and these limits are approved by the Board of Directors. The risk limits are determined
together with top management executives including the related internal systems specialist, the risk management unit
executive and the general manager of the Bank. These limits become valid with the approval of the Board.
The risk limits are determined according to the risk level the Bank able to assume, and the volume and complexity of its
products and services. The risk limits are reviewed periodically in a way to reflect the currency of the developments in the
implementation and adapted according to the changes in the market conditions and bank strategy. It is essential that the
limits are determined risk-based. The risk limits to be determined, cannot exceed the limits specified in the regulations
related to these topics.
VIII.Explanations regarding the presentation of financial assets and liabilities at their fair values
It has been assumed that fair value of financial assets and liabilities at the Bank’s financial statement which have not been
presented by fair value approximates their carrying value due to short-term maturity structure.
TFRS 7 - Financial instruments: Disclosures requires the classification of fair value measurements into a fair value hierarchy
by reference to the observability and significance of the inputs used in measuring fair value of financial instruments
measured at fair value to be closed. This classification basically relies on whether the relevant inputs are observable or not.
This distinction brings about a fair value measurement classification generally as follows:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets of liabilities;
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are obversable for the
asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3: Fair value measurements using inputs for the assets or liability that are not based on observable market data
(unobservable inputs).
Deutsche Bank
Annual Report 2014
97
This classification of fair value measurements of financial assets and liabilities measured at fair value is as follows:
31 December 2014
Level 1
Level 2
Level 3
Total
578.215
3.467
-
581.682
Government Debt Securities
578.215
-
-
578.215
Share Certificates
-
-
-
Derivative Financial Assets Held for Trading
-
3.467
-
3.467
Other Securities
-
-
-
Available for Sale Financial Assets
-
-
-
-
-
-
Other Securities
-
-
-
-
-
-
Total Assets
578.215
3.467
-
581.682
Derivative Financial Liabilities Held for Trading
-
3.192
-
3.192
-
-
-
Total Liabilities
-
3.192
-
3.192
31 December 2013 Level 1
Level 2
Level 3
Total
797.082
18.937
-
816.019
797.082
-
-
797.082
Share Certificates
-
-
-
Derivative Financial Assets Held for Trading
-
18.937
-
18.937
Other Securities
-
-
-
Available for Sale Financial Assets
-
-
-
-
-
-
Other Securities
-
-
-
-
-
-
Total Assets
797.082
18.937
-
816.019
Derivative Financial Liabilities Held for Trading
-
18.145
-
18.145
-
-
-
Total Liabilities
-
18.145
-
18.145
IX. E
xplanation regarding the activities carried out on behalf and account of other parties
1.Purchasing, selling, custody, management and advisory services which are carried out by the Bank on behalf of
customers
The Bank provides intermediary services for the purchase and sale of financial assets on behalf of the customers and
custody services.
2.Whether operations with financial institutions and financial services in the context of transaction agreements held in trust
effect the financial situation of the Bank significantly
The Bank is not involved in trust activities.
98
Deutsche Bank
Annual Report 2014
X. Explanations on operating segments
Financial information on operational segments as of 31 December 2014 and 31 December 2013 are as follows:
Current period
CorporateGlobal
Banking
Markets
Other
Unallocated
Total
Operating Profit
69.123
97.114
40.150
-
206.387
Net Operating Profit / (Loss)
31.823
58.221
11.995
-
102.039
Profit /(Loss) Before Tax
31.823
58.221
11.995
102.039
Tax Provision
-
-
-
(21.468)
(21.468)
Net Period Profit /(Loss)
31.823
58.221
11.995
(21.468)
80.571
Segment Assets
1.192.811
1.722.678
6.358
-
2.921.847
Segment Liabilities
718.846
1.687.162
8.616
-
2.414.624
Equity
-
-
-
507.223
507.223
CorporateGlobal
Prior period
Banking
Markets
Other
Unallocated
Total
Operating Profit
53.933
(19.183)
69.551
-
104.301
Net Operating Profit / (Loss)
20.744
(25.639)
9.027
-
4.132
Profit /(Loss) Before Tax
20.744
(25.639)
9.027
4.132
Tax Provision
-
-
-
(2.045)
(2.045)
Net Period Profit /(Loss)
20.744
(25.639)
9.027
(2.045)
2.087
Segment Assets
963.303
1.396.327
-
-
2.359.630
Segment Liabilities
582.161
1.350.762
-
-
1.932.923
Equity
-
-
-
426.707
426.707
Deutsche Bank
Annual Report 2014
99
SECTION FIVE
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS
I. Explanations and Notes Related to Assets
1.Information related to cash and balances with the Central Bank The Republic of Turkey
1.a Information on cash and balances with the Central Bank The Republic of Turkey
Current Period
Prior Period
TL
FC
TL
FC
Cash in TL/ Foreign currency
144
222
41
118
Central Bank of Turkey
45.930
487.662
30.101
198.263
Other
-
-
-
Total
46.074
487.884
30.142
198.381
1.b Information on balances with the Central Bank of Turkey
Current Period
Prior Period
TL
FC
TL
FC
Unrestricted Demand Deposits
45.855
-
30.101
Unrestricted Time Deposits
-
223.571
-
77.259
Restricted Time Deposits
75
264.091
-
121.004
Total
45.930
487.662
30.101
198.263
1.c Information on reserve deposits
The Banks established or operating by means of opening a branch in Turkey, subject to the Communiqué numbered
2005/1 “Required Reserves” of the Central Bank of Turkey. The amount result from total domestic liabilities by deduction
of the accounts indicated in the Communiqué and the deposit accepted from Turkey on behalf of the branches abroad
forms liabilities subjected to required reserves. The banks operating in Turkey keep reserve deposits for Turkish currency
liabilities in TL, USD, EUR and/or standard gold at the rates between 5% and 11.5% according to their maturities (31
December 2013: between 5% and 11.5% according to their maturities), foreign currency liabilities in USD, EUR and/or
standard gold at the rates between 6% and 13% according to their maturities (31 December 2013: between 6% and 12.5%
according to their maturities), respectively as per the Communiqué no.2005/1 “Reserve Deposits” of the Central Bank of
Turkey.
Interest is paid to TL Reserve deposits kept buy Banks and finance companies.
The amount of interest is paid at the rate of weighted average funding cost of Central Bank of Turkey less 700 basis point
for amounts held in November and December 2014 on the following working days.
2.Information on financial assets at fair value through profit or loss
2.a Financial assets at fair value through profit or loss
2.a.1Financial assets at fair value through profit/loss subject to repurchase agreements and provided as collateral/blocked
Current Period
Prior Period
TL
FC
TL
FC
Share Certificates
-
-
-
Government Securities, Treasury Bills, and Other Securities174.400
-
141.940
Others
-
-
-
Total
174.400
-
141.940
-
Deutsche Bank
Annual Report 2014
100
2.a.2Financial assets at fair value through profit/loss subject to repurchase agreements
Current Period
Prior Period
TL
FC
TL
FC
Government Bonds
31.539
-
188.190
Treasury Bills
-
-
-
Other Securities
-
-
-
Bond Issued or Guaranteed By Banks
-
-
-
Asset Backed Securities
-
-
-
Others
-
-
-
Total
31.539
-
188.190
2.bPositive differences on derivative financial assets held for trading
Current Period
Prior Period
TL
FC
TL
FC
Forward Transactions
-
1.303
-
9.364
Swap Transactions
-
2.164
-
9.573
Futures
-
-
-
Options
-
-
-
Other
-
-
-
Total
-
3.467
-
18.937
3. Information on banks
3.a. Information on banks
Current Period
Prior Period
TL
FC
TL
FC
Banks
Domestic
581
152
278.245
498
Foreign
21.068
13.409
29.500
4.775
Foreign headoffices and branches
-
-
-
Total
21.649
13.561
307.745
5.273
3.b Information on foreign banks account
Unrestricted amount
Restricted amount
Current Period
Prior Period
Current Period
Prior Period
EU Countries
31.325
32.814
-
USA, Canada
2.656
1.107
-
496
354
-
OECD Countries (*)
Off-shore Banking Regions
-
-
-
Other
-
-
-
Total
34.477
34.275
-
(*)
OECD countries other than EU countries, USA and Canada.
4. Information on financial assets available for sale
Deutsche Bank
Annual Report 2014
101
5. Explanations on loans and receivables
5.a Information on all types of loan or advance balances given to shareholders and employees of the Bank
Current Period
Prior Period
Cash
Non-cash
Cash
Non-cash
Direct Lending to Shareholders
-
111.884
-
28.413
Corporate Shareholders -
111.884
-
28.413
Individual Shareholders
-
-
-
Indirect Lending to Shareholders 121.686
-
76.968
Loans to Employees
201
-
58
Total
121.887
111.884
77.026
28.413
5.bInformation on the first and second group loans and receivables including loans that have been restructured or
rescheduled and other receivables
Standard Loans
Loans and Other Receivables
and Other Receivables
Under Close Monitoring Loans and Other
Restructured
Loans and Other
Restructured or
Receivables
or Rescheduled
Receivables
Rescheduled
ExtensionExtension
of the of the payment
payment
Cash Loans
plan
Other
plan
Other
Non-Specialized Loans
914.142
176.615
-
-
-
Commercial loans
746.001
87.054
-
-
-
Export Loans 167.905
89.561
-
-
-
Import Loans
-
-
-
-
-
Loans Given to Financial Sector
35
-
-
-
-
Consumer Loans 201
-
-
-
-
Credit Cards
-
-
-
-
-
Other
-
-
-
-
-
Specialized Lending
-
-
-
-
-
Other Receivables
-
-
-
-
-
Total 914.142
176.615
-
-
-
Information on loans whose terms are extended as of 31 December 2014:
Current Period
Loans and Other
Standard Loans Receivables
Number of extensions
Under Close Monitoring
1 or 2 Times 72.315
3, 4 or 5 Times
67.805
Over 5 Times
36.495
Total
176.615
Current Period
Loans and Other
Standard Loans Receivables
Extension Periods
Under Close Monitoring 0 - 6 Months
120.972
6 Months – 12 Months
24.303
1 - 2 Years
11.322
2 - 5 Years
20.018
5 Years and Over
-
Total
176.615
-
102
Deutsche Bank
Annual Report 2014
5.c Loans according to their maturity structure
Standard Loans and Loans and Other Receivables Under
Current Period
Other Receivables
Close Monitoring
Loans and Other Restructured or Loans and Other Restructured or
Cash Loans
Receivables
Rescheduled
Receivables
Rescheduled
Short-term Loans and Receivables
914.142
176.615
-
Non-specialised Loans
914.142
176.615
-
Specialised Loans
-
-
-
Other Receivables
-
-
-
Medium and Long-Term Loans and Receivables
-
-
-
Non-specialised Loans -
-
-
Specialised Loans
-
-
-
Other Receivables
-
-
-
Total
914.142
176.615
-
-
Prior Period
Cash Loans
Short-term Loans and Receivables
Non-specialised Loans
Specialised Loans
Other Receivables
Medium and Long-Term Loans and Receivables
Non-specialised Loans Specialised Loans
Other Receivables
Total
Standard Loans and Other Receivables
Loans and Other Receivables Under
Close Monitoring
Loans and Other Restructured or Loans and Other Restructured or
Receivables
Rescheduled
Receivables
Rescheduled
658.176
245.853
-
658.176
245.853
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
658.176
245.853
-
-
5.dInformation on consumer loans, individual credit cards, personnel loans and personnel credit cards
The Bank has no consumer loans, consumer credit cards and personnel credit cards as of
31 December 2014 (31 December 2013: None). The Bank has short term personnel loan amounting to TL 201 as of 31
December 2014 (31 December 2013: TL 58).
5.e Information on installment based commercial loans and corporate credit cards
The Bank’s overdraft account amount is TL 79.177 as of 31 December 2014 (31 December 2013:TL 16.949)
Deutsche Bank
Annual Report 2014
103
5.f Information on allocation of loan customers
Current Period Prior Period
Public Sector
-
Private Sector
1.090.757
904.029
Total
1.090.757
904.029
5.g Distribution of domestic and foreign loans
Domestic Loans
1.090.722
903.372
Foreign Loans
35
657
Total
1.090.757
904.029
5.h Loans to associates and subsidiaries
5.i Specific provisions for loans
5.j Information on non-performing loans (Net)
5.j.1 Information on non-performing loans and receivables restructured or rescheduled:
5.j.2 Information on the movement of total non-performing loans:
5.j.3Information on foreign currency non-performing loans and receivables
5.k Main principles of liquidating for uncollectible loans and receivables
The Bank has no uncollectible loans and receivables as of 31 December 2014 (31 December 2013: None).
6. Information on held-to-maturity financial assets
7. Information on investments in associates
8. Information on investments in subsidiaries
9. Information on investments in joint ventures
10. Information on finance lease receivables
11.Information on derivative financial assets held for risk management
104
Deutsche Bank
Annual Report 2014
12. Information on property and equipment
Real Leased Other
Current Period
Estates Tangible Assets Tangible Assets Total
1 January 2014
Cost
-
2.919
14.783
17.702
Accumulated Depreciation (-)
-
(2.882)
(12.145)
(15.027)
Net Carrying Value
-
37
2.638
2.675
31 December 2014
Net Carrying Value at the Beginning of the Period
-
37
2.638
2.675
Additions -
-
538
538
Disposals (-) (net)
-
-
-
Depreciation (-)
-
(7)
(1.164)
(1.171)
Cost at the End of the Period -
2.919
15.321
18.240
Accumulated Depreciation at the End of the Period (-)
-
(2.889)
(13.309)
(16.198)
Net Carrying Value -
30
2.012
2.042
Prior Period
Real Leased Other
Estates Tangible Assets Tangible Assets Total
1 January 2013
Cost
-
2.919
14.393
17.312
Accumulated Depreciation (-)
-
(2.875)
(10.995)
(13.870)
Net carrying value -
44
3.398
3.442
31 December 2013
Net Carrying Value at the Beginning of the Period
-
44
3.398
3.442
Additions -
-
390
390
Disposals (-) (net)
-
-
-
Depreciation (-)
-
(7)
(1.150)
(1.157)
Cost at the End of the Period -
2.919
14.783
17.702
Accumulated Depreciation at the End of the Period (-)
-
(2.882)
(12.145)
(15.027)
Net Carrying Value -
37
2.638
2.675
As of 31 December 2014 and 31 December 2013, there is not impairment losses or reversal of impairment losses on
tangible assets.
As of 31 December 2014 and 31 December 2013, there is no pledge on tangible assets.
13.Additionally necessary information on each intangible asset type:
The Bank has intangible assets amounting to TL 20.013 as of 31 December 2014 (31 December 2013: TL 27.028). The Bank
acquired the custody operations (customer list) of a local Bank in Turkey on 11 May 2007 and the transaction was settled on
2 July 2007. Purchase amount was amounting to TL 150.976, a provision of TL 59.823 has been recorded after revaluation in
April 2010 because of changes in expected cash flows. The Bank performs impairment tests annually for this to intangible
asset and there is no identified impairment as of 31 December 2014. As of 31 December 2014, the net carrying value of
aforesaid intangible asset amounting to TL 17.115. Beside, the Bank’s purchased in 2007 but not used software has been
impaired amounting to TL 1.199.
105
Deutsche Bank
Annual Report 2014
13.aCarrying value and accumulated amortization balances at current and prior period
Current Period
CarryingAccumulated
Value ImpairmentAmortisation
Intangible Assets
164.302
61.950
82.339
Prior Period
CarryingAccumulated
Value ImpairmentAmortisation
162.452
61.950
73.474
13.b Information on movements between the beginning and end of the period
Beginning of the Period
27.028
34.151
Additions due to Mergers, Transfers and Acquisitions
1.850
1.540
Cost to retire and Disposals (-)
-
Amortization (-)
(8.865)
(8.663)
End of the Period
20.013
27.028
14. Information on investment property
15. Information on tax assets
As of 31 December 2014, the amount of TL 22.890 current tax provision after deducting taxes prepaid TL 23.717, the total
amount of TL 827 tax asset has been taken into the records (31 December 2013: 1.673 TL current tax asset).
As of 31 December 2014, the Bank has a deferred tax liability of TL 1.661 (31 December 2013: TL 3.029) calculated as the net
amount remaining after netting of tax deductible timing differences and taxable timing differences. Detailed information
related to net deferred tax assets/liabilities is given in Section Five Note 8.b.
There is no deductible temporary differences that are not included in calculation of deferred tax asset and not reflected to
financial statements in prior periods.
16. Information on assets held for sale and discontinued operations
17. Information on other assets
17.a Information on prepaid expenses, tax and similar transactions
Current Period
Prior Period
Income accruals (*)
55.399
47.499
Guarantees given
49.027
14.508
Prepaid expenses
1.393
1.256
Other
1.370
3.402
Total
107.189
66.665
(*)
TL 52.735 of income accruals comprise service income accruals (31 December 2013: TL 44.262).
17.b B
reakdown of other assets which constitute at least 20% of grand total
Presented in the table above.
106
Deutsche Bank
Annual Report 2014
II. E
xplanations and Notes Related to Liabilities
1.Information on maturity structure of deposits
With 7 days Current Period
Demand notifications
Saving Deposits
-
264.856
Residents in Turkey
251.896
Residents Abroad
12.960
Public Sector Deposits
-
Commercial Deposits
97.216
Other Institutions Deposits
22.383
Precious Metal Deposits
-
Bank Deposits
123.666
The Central Bank of Turkey
-
Domestic Banks
Foreign Banks
123.666
Special Financial
Institutions
-
Other
-
Total
508.121
Up to 1 month
1-3
months
3-6 6 months
1 year
months
-1 year and over
Total
-
-
-
-
7.235
587
-
7.235
587
-
-
-
-
-
- 164.796
-
-
5
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
123.666
-
-
-
-
-
172.036
-
-
587
-
-
-
-
-
-
-
-
-
680.744
With 7 days Prior Period
Demand notifications
Up to 1 month
1-3
months
3-6 6 months
1 year
months
-1 year and over
Total
Saving Deposits
-
-
-
-
-
-
-
26.114
-
23.987
-
-
-
Residents in Turkey
19.619
-
23.987
-
-
-
-
Residents Abroad
6.495
-
-
-
-
-
-
-
-
-
-
-
-
Commercial Deposits
63.201
-
40.642
-
-
-
-
Other Institutions Deposits
17.769
-
6.710
-
-
-
-
-
-
-
-
-
-
-
Bank Deposits
414.533
-
-
-
-
-
The Central Bank of Turkey
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
Foreign Banks
414.533
-
-
-
-
-
-
Special Financial
Institutions
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
Total
521.617
-
71.339
-
-
-
Saving deposits covered by deposit insurance and total amount of deposits exceeding insurance coverage limit
272.678
259.718
12.960
262.012
22.388
123.666
-
50.101
43.606
6.495
103.843
24.479
414.533
414.533
592.956
Saving deposits at domestic branches of foreign banks in Turkey under the coverage of foreign insurance
Saving deposits out of the insurance coverage limits of Saving Deposit Insurance Fund
2.Information on derivative financial liabilities held for trading
Negative differences on derivative financial liabilities held for trading
Forward Transactions
Swap Transactions
Futures Transactions
Options
Other
Total
Current Period
TL
FC
-
2.142
-
1.050
-
-
-
-
-
-
-3.192
Prior Period
TL
FC
-
9.109
-
9.036
-
-
-
-
18.145
Deutsche Bank
Annual Report 2014
107
3. Information on funds borrowed
3.a Information on banks and other financial institutions
Current Period
Prior Period
TL
FC
TL
FC
-
-
-
Domestic Banks and Institutions
124
-
1.013
Foreign Banks, Institutions and Funds
701.566
936.568
400.900
672.110
Total
701.690
936.568
401.913
672.110
3.b Information on maturity structure of funds borrowed
Current Period
Prior Period
TL
FC
TL
FC
Short-Term
701.690
936.568
401.913
646.498
Medium and Long-Term
-
-
-
25.612
Total
701.690
936.568
401.913
672.110
3.c Additional information on the major concentration of the Bank’s liabilities
The Bank funds its assets within the normal course of its banking business with bank deposits, funds borrowed and
interbank money markets.
4.At least 20% of account of other liabilities on the balance sheet, exceeding 10% of the total liabilities excluding the off
balance sheet items
Account of other liabilities on the balance sheet does not exceeds 10% of total liabilities excluding the off-balance sheet
items.
5. Information on financial lease payables (Net)
5.1General information on the criteria used for the lease instalment arrangements, renewal or buy options and restrictions
in the agreements
5.2 Changes in the conditions of the agreements and new requirements for the Bank
5.3 Information on financial lease payables
5.4 Operational lease agreements
The Bank’s operational leasing activities comprise of vehicles, photocopy machines and office buildings.
5.5 Information on sales and lease-back agreements
In the current period there are no sales and lease-back agreements (31 December 2013: None).
5.6 Information on derivative financial liabilities held for risk management
108
Deutsche Bank
Annual Report 2014
7. Information on provisions and subordinated loans
7.a Information on general provisions
Current Period
General Provisions
Loans and Receivables in Group I
16.003
- Additional Provision for Loans and Receivables
with Extended Maturities
3.844
Loans and Receivables in Group II
-
- Additional Provision for Loans and Receivables
with Extended Maturities
-
Non-cash Loans
426
Other
2.048
Total
18.477
Prior Period
12.592
2.754
375
1.866
14.833
7.b Information on provisions for foreign exchange differences on foreign currency indexed loans
As of 31 December 2014, provision for the foreign exchange differences on foreign currency indexed loans is TL 850 (31
December 2013: TL 69) and this amount is netted with loans on the asset side of the financial statements.
7.c Provisions for non-cash loans that are not indemnified or converted into cash
The Bank has specific provisions provided for unindemnified non cash loans amounting to TL 147 as of the reporting date
(31 December 2013: TL 138). It is recognized under “Other Revenues”.
7.d Reserve for employment benefits
Information on reserve for employment termination benefits
Current Period
Prior Period
Personnel Bonus Provision 14.061
15.703
Provision for Employee Severance Indemnities
794
874
Vacation Pay Liability
2.002
1.617
Total
16.857
18.194
In accordance with the existing Turkish Labor Law, the Bank is required to make lump-sum termination indemnities to each
employee who has completed one year of service with the Bank and whose employment is terminated due to retirement or
for reasons other than resignation or misconduct and this amount is limited by the termination imdentiy upper limit.
Employee severance indemnities are not subject to legal funding requirements.
The provision has been calculated by estimating the present value of the future probable obligation of the Bank arising
from the retirement of employees. TAS 19 requires actuarial valuation methods to be developed to estimate the
enterprise’s obligation under defined benefit plans. Accordingly, assumptions on discount rate, expected rate of salary
increase and employee turnover rate is used in the calculation of the total liability. Each assumption is reviewed on an
annual basis. The major acturial assumptions used in the calculation of the total liability are as follows:
Current Period
Prior Period
Net discount rate
3.62%
2.74%
Rate of expected inflation increase
5.00%
5.30%
Turnover rate to estimate the probability of retirement
92.90%
93.80%
Movement of provision for severance indemnities during the year is presented below:
Current Period
Prior Period
Balance at the beginning of the period
874
774
Termination Cost
17
The provision of the current year
208
154
The provision is paid during the period (-)
(40)
(13)
The provision is cancelled during period (-)
-
(41)
Actuarial gains/(losses)
(265)
Total
794
874
(*)
Actuarial gains/(losses) are recognized under equity.
Deutsche Bank
Annual Report 2014
109
7.e Information on other provisions
7.e.1 General reserve for possible losses
7.e.2 Information on other provisions exceeding 10% of total provisions
As of 31 December 2013, other provisions amounting to TL 13.109 (31 December 2013: TL 12.888) includes provisions
amounting to TL 12.687 (31 December 2013: TL 12.326) that will be paid in accordance with the service agreement signed
with Deutsche Bank Group.
8. Information on tax liability
8.a.1 Information on tax liability
8.a.2 Information on taxes payable
Current Period
Prior Period
Corporate Taxes Payable
-
Taxation on Securities Income
383
234
Tax on Real Estates Income
-
Banking Insurance Transaction tax (BITT)
2.382
2.787
Foreign Exchange Transactions tax
-
Value Added Tax Payable
1.626
1.523
Others (*)
731
771
Total
5.1225.315
(*)
Includes withholding income taxes amounting to TL 712 as of 31 December 2014 (31 December 2013: TL 743).
8.a.3 Information on premium payables
Current Period
Prior Period
Social Security Premiums-Employee
110
97
Social Security Premiums-Employer
126
111
Bank Pension Fund Premium-Employees
-
Bank Pension Fund Premium-Employer
-
Pension Fund Membership Fee and Provisions-Employee
-
Pension Fund Membership Fee and Provisions-Employer
-
Unemployment Insurance-Employee
8
7
Unemployment Insurance-Employer
15
14
Others
-
Total
259229
8.b Information on deferred tax liability
The Bank has an amount of TL 1.661 deferred tax liability in the current period (31 December 2013: TL 3.029).
Deutsche Bank
Annual Report 2014
110
Current period
Prior period
Accumulated Deferred Tax Accumulated Deferred Tax
Temporary Asset / Temporary Asset /
Differences
(Liability)
Differences
(Liability)
Impairment on Intangible Assets
59.823
11.965
59.823
11.965
Reserve for Employment Benefits
9.083
1.817
9.671
1.934
Provisions
241
48
144
29
Derivative Financial Liabilities -
-
-
Other
1.577
315
1.035
207
Deferred Tax Assets
70.724
14.145
70.673
14.135
Differences Between Carrying Value and Tax Value of
Tangible and Intangible Assets
(78.728)
(15.746)
(85.574)
(17.115)
Derivative Financial Asset Accrual Income
(299)
(60)
(246)
(49)
Deferred Tax Liabilities
(79.027)
(15.806)
(85.820)
(17.164)
Deferred Tax Liability, net
(8.303)
(1.661)
(15.147)
(3.029)
9. Information on liabilities related to assets held for sale and discontinued operations
10. Explanations on the number of subordinated loans the group used, maturity, interest rate, institution that the loan was
borrowed from, and conversion option, if any
11. Information on shareholders’ equity
11.1 Presentation of paid-in capital
Current period
Prior period
Common Stock 135.000
135.000
Preferred Stock -
Total
135.000135.000
11.2Paid-in capital amount, explanation as to whether the registered share capital system ceiling is applicable at bank, if so
amount of registered share capital
The Bank is not subject to registered share capital system.
11.3 Information on the share capital increases during the period and their sources
11.4 Information on share capital increases from revaluation funds
11.5Capital commitments in the last fiscal year and at the end of the following interim period, the general purpose of these
commitments and estimated resources required to meet these commitments
11.6 Information on privileges given to shares representing the capital
11.7 Information on securities value increase fund
11.8 Information on the distribution of profits
The related explanation is disclosed under the Note 5 of Section V.5.
111
Deutsche Bank
Annual Report 2014
III. Explanations and Notes Related to Off-Balance Sheet Items
1. Information on off balance sheet liabilities
1.a The amount and type of irrevocable commitments
Type of irrevocable commitments
Current Period
Prior Period
Loan Granting Commitments
1.023.978
849.997
Two Days Forward Buy/Sell Commitments
82.716
1.677.815
Payment Commitments for Checks
17
44
Tax and Fund Liabilities from Export Commitments
21
5
Other Irrevocable commitments
428.525
445.245
Total
1.535.257
2.973.106
1.b Possible losses and commitments resulted from off-balance sheet items including the following
1.b.1Non-cash loans including guarantees, bank acceptances, letters of guarantee substitute for financial guarantees and
other letters of credit
As of 31 December 2014, amount of letters of guarantee, letters of credit, import letter of acceptance and sureties are
amounting to TL 188.429 (31 December 2013: TL 179.363), TL 13.164 (31 December 2013: TL 6.412), and TL 11.508
(31 December 2013: TL 1.643), respectively.
1.b.2 Certain guarantees, tentative guarantees, sureties and similar transactions
None except the items explained above in note 1.b.1.
1.c Non-cash loans
1.c.1 Non-cash loans
Current Period
Prior Period
Non-Cash Loans against Cash Loans
-
With Original Maturity up to 1 Year
-
With Original Maturity of More Than 1 Year
-
Other Non-Cash Loans
213.101
187.418
Total
213.101
187.418
1.c.2 Sector risk concentration of non-cash loans
TL
Agriculture
-
Farming and Stockbreeding -
Forestry
-
Fishery
-
Manufacturing
20.970
Mining 195
Production
20.670
Electricity, Gas, Water
105
Construction
1.016
Services
7.930
Wholesale and Retail Trade
1.800
Hotel, Food and Beverage Services
-
Transportation and Telecommunication6.099
31
Real Estate and Renting Services
-
“Self-Employment’’ Type Services
-
Educational Services
-
Health and Social Services
-
Other
151
Total
30.067
Current Period
(%)
FC
-
-
-
-
-
-
-
-
70 112.350
1
971
69 111.161
-
218
3
19.688
26
44.935
6
5.575
-
-
20
11.311
-
28.049
-
-
-
-
-
-
-
-
1
6.061
100 183.034
(%)
-
-
-
-
62
1
61
-
11
24
3
-
6
15
-
-
-
-
3
100
TL
-
-
-
-
5.581
-
5.581
-
-
17.891
12.021
-
5.839
31
-
-
-
-
-
23.472
Prior Period
(%)
FC
-
-
-
-
-
-
-
-
24.00 102.840
-
320
24.00 102.040
-
480
-
20.300
76.00
40.730
51.00
19.657
-
-
25.00
14.555
-
6.518
-
-
-
-
-
-
-
-
-
76
100 163.946
(%)
63
63
12
25
12
9
4
100
Deutsche Bank
Annual Report 2014
112
1.c.3Non-cash loans classified under Group I and II
Group I
Group II
Current Period
TL
FC
TL
FC
Letters of Guarantee
30.067
158.362
-
Bank Acceptances
-
-
-
Letters of Credit
-
13.164
-
Endorsements
-
-
-
Underwriting Commitments
-
-
-
Factoring Related Guarantees
-
-
-
Other Commitments and Contingencies
-
11.508
-
Total
30.067
183.034
-
2. Information on financial derivative instruments
Derivative Transactions per Their Purposes
Trading
Risk Management
Current Period Current Period
Current Period Current Period
Derivatives Held for Trading
Foreign Currency Related Derivative Transactions (I)
1.502.438
1.976.829
-
Currency Forwards 363.401
735.391
-
Currency Swaps
1.139.037
1.241.438
-
Currency Futures
-
-
-
Currency Options -
-
-
Interest Rate Related Derivative Transactions (II)
-
-
-
Interest Rate Forwards
-
-
-
Interest Rate Swaps
-
-
-
Interest Rate Futures
-
-
-
Interest Rate Options
-
-
-
Other Derivatives Held for Trading (III)
-
-
-
A. Total Derivatives Held for Trading (I+II+III)
1.502.438
1.976.829
-
Derivatives Held for Risk Management
Fair Value Hedge (1)
-
-
-
Cash Flow Hedge (2)
-
-
-
Net Foreign Investment Hedge
-
-
-
B. Total Derivatives Held for Risk Management
-
-
-
Total Derivative Transactions(A+B)
1.502.438
1.976.829
-
3.Information on credit derivatives and risk exposures on credit derivatives
4. Explanations on contingent liabilities and assets
As of 31 December 2014 there are on going lawsuits against the Bank but since the cash outflow risk is low there is no
provision provided (31 December 2013: None).
113
Deutsche Bank
Annual Report 2014
5. Explanations on services provided on behalf of third parties
The Bank provides purchase and sales of the financial instruments and custody services on behalf of the third parties.
Financial instruments (notional values) held on behalf of the individuals and corporates by the Bank are as follows:
Current Period
Önceki Dönem
Government Bonds-TL
38.368.590
35.734.399
Private Sector Bonds
1.017.098
1.097.792
Warrants
1.802.757
970.645
Share Certificates-TL
7.995.631
7.510.698
Cheques in Portfolio-TL
25.321
33.707
Cheques in Portfolio-FC
6.688
8.927
Other Items Under Custody
23.189
21.343
Total
49.239.274
45.377.511
IV. Explanations and Notes Related to Income Statement
1. Information on interest income:
1.a Information on interest income on loans (*)
Current Period
TL
FC
Prior Period
TL
FC
4.852
8.006
-
-
12.858
29.949
-
-
-
29.949
5.342
2.079
7.421
Current Period
TL
FC
TL
FC
-
1
-
-
1
-
4.273
3.296
-
7.569
-
1.c Information on interest income on marketable securities
Current Period
TL
FC
Financial Assets Held for Trading
57.194
-
Financial Assets At Fair Value Through Profit or Loss
-
-
-
-
-
-
Total
57.194
TL
85.707
-
-
-
85.707
Short-Term Loans 64.402
Medium/Long-Term Loans
-
Interest on Non-Performing Loans -
Premiums Received from Resource Utilisation Support Fund -
Total
64.402
(*)
Includes also the fee and commission income on cash loans.
1.b Information on interest income on banks
Domestic Banks
Foreign Banks
Foreign Head Offices and Branches
Total
151
9.120
4.534
-
13.805
1.dInformation on interest income received from associates and subsidiaries
Prior Period
Prior Period
FC
-
114
Deutsche Bank
Annual Report 2014
2. Information on interest expenses
2.aInformation on interest expense on funds borrowed (*)
Current Period
Prior Period
TL
FC
TL
FC
Banks
55.493
3.775
4.010
2.169
-
-
-
Domestic Banks
-
-
-
Foreign Banks
55.493
3.775
4.010
2.169
Foreign Head Offices and Branches
-
-
-
Other Institutions
-
-
-
Total
55.493
3.775
4.010
2.169
(*)
Includes also the fee and commission expense on funds borrowed.
2.b Information on interest expense paid to associates and subsidiaries
2.c Interest expense on securities issued
2.d Maturity structure of the interest expense on deposits
Current Period
Demand Deposits
Up to1 Month
1-3
Months
Time Deposits
3-6
Months
6-12
Months
1 year
and over
Total
TL
Bank Deposits
370
919
-
-
-
-
1.289
Saving Deposits
-
-
-
-
-
-
-
-
-
-
-
-
Commercial Deposits
90
11.884
678
-
-
-
12.652
Other Deposits
-
127
-
-
-
127
“7 Days Notice” Deposits
-
-
-
-
-
-
Total
460
12.930
678
-
-
-
14.068
FC
-
15
-
-
-
-
15
-
-
-
-
-
-
-
-
-
-
-
Bank Deposits
-
484
-
-
-
-
484
Total
-
499
-
-
-
-
499
Grand Total
460
13.429
678
-
-
-
14.567
Prior Period
Demand Deposits
Up to1 Month
1-3
Months
Time Deposits
3-6
Months
6-12
Months
1 year
and over
Total
TL
Bank Deposits
263
1.291
-
-
-
-
1.554
Saving Deposits
-
-
-
-
-
-
-
-
-
-
-
-
Commercial Deposits
45
4.317
-
-
-
4.362
Other Deposits
-
302
-
-
-
302
-
-
-
-
-
-
Total
308
5.910
-
-
-
6.218
FC
-
57
14
24
-
-
95
-
-
-
-
-
-
-
-
-
-
-
-
Bank Deposits
-
809
-
-
-
-
809
Total
-
866
14
24
-
-
904
Grand Total
308
6.776
14
24
-
-
7.122
Deutsche Bank
Annual Report 2014
115
3.Information on dividend income
4.Information on trading loss/income (Net)
Current Period
Prior Period
Profit
1.811.967
3.079.351
Capital Market Transactions
87.322
83.690
Derivative Financial Transactions (*)
808.876
1.152.207
Foreign Exchange Gains
915.769
1.843.454
Losses (-)
1.810.348
3.179.522
Capital Market Transactions 48.199
139.013
899.592
1.015.492
Derivative Financial Transactions (*)
Foreign Exchange Losses
862.557
2.025.017
Net Income/(Losses) (Net)
1.619
(100.171)
(*)
Foreign exchange loss from derivative transactions is amounting to TL 55.345 (31 December 2013:TL 150.257).
5. Information on other operating income
As of 31 December 2014, the Bank’s other operating income is amounting to TL 12.441 (31 December 2013: TL 16.433).
Current Period
Prior Period
Service Income - FC
8.086
12.382
Service Income - TL
3.619
3.598
Other
736
453
Total
12.441
16.433
6. Provisions for losses on loans and receivables
Current Period
Prior Period
Specific Provisions for Loans and Receivable
-
Loans and Receivables in Group III
-
Loans and Receivables in Group IV
-
Loans and Receivables in Group V
-
General Provisions
3.644
6.425
Provision for Possible Losses
-
Foreign Exchange Losses on Foreign Currency
-
Impairment Losses on Securities
182
3.745
Financial Assets at Fair Value through Profit or Loss
182
3.745
Available-for-sale Financial Assets
-
Other Impairment Losses -
Associates
-
Subsidiaries
-
Joint Ventures
-
Held to Maturity Financial Securities
-
Other -
Total
3.826
10.170
Deutsche Bank
Annual Report 2014
116
7. Information on other operational expenses
Current Period
Prior Period
Personnel Expenses
30.227
25.648
Reserve for Employee Termination Benefits 186
100
Bank Pension Fund Deficit Provisions
-
Impairment Losses on Tangible Assets -
Depreciation Expenses of Tangible Assets
1.171
1.157
Impairment Losses on Intangible Assets
-
Impairment Losses on Goodwill
-
Amortization Expenses of Intangible Assets
8.865
8.663
Impairment Losses on Investments Accounted Under Equity Method
-
Impairment Losses on Assets to be Disposed
-
Depreciation Expenses of Assets to be Disposed
-
Impairment Losses on Assets Held for Sale
-
Other Operating Expenses 36.002
32.870
Operational Lease Related Expenses
3.415
2.917
Repair and Maintenance Expenses 868
769
Advertisement Expenses -
31.719
29.184
Other Expenses (*)
Loss on Sale of Assets
-
Operational Lease Related Expenses
-
Other (**)
24.071
21.561
Total
100.522
89.999
The “Other operating expenses” includes communication expenses amounting to TL 8.117 (31 December 2013: TL 6.633),
benefits and services obtained from third parties amounting to TL 2.692 (31 December 2013: TL 2.397), information and
technology expenses amounting to TL 3.532 (31 December 2013: TL 2.557) and Deutsche Bank Group management service
expenses amounting to TL 4.729 (31 December 2013: TL 3.445).
(**)
As of 31 December 2014 “Other” includes short term employee benefits amounting to TL 13.573 (31 December 2013: TL
14.372).
(*)
8. Profit/loss before taxes from continuing and discontinued operations
As of 31 December 2014 the Bank has a profit before tax amounting to TL 102.039 (31 December 2013: profit of TL 4.132).
9. Information on provision for taxes from continuing and discontinued operations
9.1Information on current tax income/ expense and deferred tax income/expense from continuing and discontinued
operations
As of 31 December 2014 the Bank has deferred tax income amounting to TL 1.422 (31 December 2013: TL 1.805 deferred tax
expense) and current tax expense amounting to TL 22.890 (31 December 2013: TL 3.850).
9.2 Deferred tax income or expense from temporary differences of continuing and discontinued operations
The deferred tax income amounting to TL 1.422 for the year ended 31 December 2014 (31 December 2013: TL 1.805
deferred tax expense) is arising from timing differences resulting from the temporary differences between applied
accounting policies and tax regulations.
9.3 Deferred tax income/expense from the temporary differences, tax losses or tax exemptions of continuing and
discontinued operations
As of 31 December 2014, deferred tax income presented in the income statement includes the net amount remaining after
netting of tax deductible timing differences and taxable timing differences. The Bank does not have prior years’ losses.
10.Information on net operating profit/loss after taxes of continuing operations and discontinued operations
For the year ended 31 December 2014, the Bank has profit after tax amounting to TL 80.571 (31 December 2013: TL 2.087).
117
Deutsche Bank
Annual Report 2014
11. Information on net profit and loss for the period
11.1 The nature and amount of certain income and expense items from ordinary operation 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
The main operations of the Bank are interbank money market transactions, marketable securities transactions, foreign
currency transactions, custody services and providing collateralised non-cash loans. Therefore; net interest income, net
trading income, net foreign exchange gain and fees and commission income from custody services are the most important
captions of the Bank’s income statement.
Current Period
Prior Period
Interest Income/(Expense), Net
146.704
132.092
Income/(Loss) from Capital Market Transactions, Net
39.123
(55.323)
Gain/(Loss) from Derivative Financial Transactions, Net
(90.716)
136.715
Foreign Exchange Gains/(Losses), Net
53.212
(181.563)
Commissions from Custody Operations
26.733
25.395
Commissions from Non-cash Loans
1.857
1.712
Commissions from Intermediary Services
26.597
38.777
Other Commission Income
3.615
2.216
11.2 Effects of changes in accounting estimates on the current and following periods’ profit/loss
There is no significant change in accounting estimates which would affect the current or following period.
12.Components of other items in income statement, as each sub-account exceeding 20% of the total separately, exceeding
10% of total income statement
Other fee and commission income
Commissions from Custody Operations
Commissions from Intermediary Services
Other Fee and Commissions
Total
Current Period
TL
FC
26.733
-
3.539
30.272
-
26.597
76
26.673
Prior Period
TL
FC
25.395
-
2.216
27.611
38.777
38.777
Other fee and commission expense
Current Period
Prior Period
TL
FC
TL
FC
Commissions due to Custody Operations
7.914
-
7.781
Commissions Paid to Intermediary Services
-
1.314
-
637
Commissions Paid to Correspondent Banks
-
925
-
895
Other Fee and Commissions
2.728
298
2.220
620
Total
10.642
2.537
10.001
2.152
Deutsche Bank
Annual Report 2014
118
V.Explanations and Notes Related to Changes in Shareholders’ Equity
1.Information on increase due to revaluation of available for sale financial assets
2. Information on increases due to cash flow hedges
3.Reconciliation of foreign exchange differences at beginning and end of current period
4.Information on decrease due to revaluation of available for sale financial assets
5. Information on distribution of profit
Based on the decision taken at General Assembly meeting of the Bank held on 26 March 2014, dividend amounting to TL
268 is distributed to shareholders after allocating first legal reserves amounting to TL 14 from the net profit amounting
TL 2.087 and allocated the balance arise from deferred tax income amounts to TL 1.805 is transferred to extraordinary
reserves. The dividends paid on 30 April 2014.
VI. Explanations and Notes Related to Statement of Cash Flows
1.Information on other items and effect of exchange rate on cash and cash equivalents in Cash Flow Statement;
The “others” account included in “operating profit before changes in operating assets and liabilities” are comprised of
net trading gain/loss, impairment loss provision on loans and receivables and other operating income/loss. The “net
increase/ (decrease) in other liabilities” account in “changes in operating assets and liabilities” is comprised of the changes
in miscellaneous liabilities, other liabilities, provision expenses, lease payables and tax liabilities. The effect of change
in foreign exchange rate on cash and cash equivalents as of 31 December 2014 is approximately realized as increase
amounting to TL 20.284 (31 December 2013: decrease of TL 6.098).
2. Cash and cash equivalents at the beginning of the period
Cash contains, cash and cash in foreign currency, cash equivalents contain unrestricted deposits in Central Bank of Turkey,
money market operations and bank deposits and money market placements whose original maturities are up to 3 months
as of 31 December 2014 and 31 December 2013.
1 January 2014
1 January 2013
Cash 159
285
Cash Equivalents
420.326
140.193
Balances with Central Bank of Turkey
228.364
98.505
Banks’ Demand Deposits and Time Deposits Whose Original Maturities Up to 3 Months
191.962
41.688
-
Total
420.485
140.478
3. Cash and cash equivalents at the end of the period
31 December 2014 31 December 2013
Cash 366
159
Cash Equivalents
854.880
420.326
Balances with Central Bank of Turkey
269.501
228.364
Banks’ Demand Deposits and Time Deposits Whose Original Maturities Up to 3 Months
35.210
191.962
550.169
Total
855.246
420.485
Deutsche Bank
Annual Report 2014
119
4. Restricted cash and cash equivalents due to legal requirements or other reasons
There are no cash and cash equivalents restricted for the usage of the Bank by legal limitations and other reasons (31
December 2013: None).
There is no additional information that needs to be disclosed in addition to those disclosed in Note 1.
VII. Explanations and Notes Related to Bank’s Risk Group
1.Transactions with the Bank’s risk group; lendings and deposits and other related party transactions outstanding at period
end and income and expenses from such transactions incurred during the period
1.1 Current period
Associates, Subsidiaries Direct and Indirect Other Components in
and Joint Ventures
Shareholders of the Bank
Risk Group
Bank’s Risk Group Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Balance at the Beginning of the Period -
-
76.053
113.588
973
Balance at the End of the Period
-
-
120.845
111.884
1.042
Funds Borrowed
-
1.071.818
-
-
-
-
1.636.369
-
-
Interest and Commission Income
-
-
28.712
180
-
Interest and Commission Expense
-
-
58.415
-
-
-
1.2 Prior Period
Associates, Subsidiaries
Direct and Indirect Other Components in
and Joint Ventures
Risk Group
Bank’s Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
-
54.073
181.953
955
-
-
76.053
28.413
973
Funds Borrowed
-
235.170
-
-
-
-
1.071.818
-
-
Interest and Commission Income
-
-
40.326
78
-
Interest and Commission Expense
-
-
3.345
-
1.615
-
1.3 Information on deposits of the Bank’s risk group
Direct and Indirect Other Components ink
and Joint Ventures
Risk Group
Current Prior Current Prior Current Prior
Bank’s Risk Group
Period
Period
Period
Period
Period
Period
Deposits
-
224.894
96.701
33.496
31.796
-
-
33.346
224.894
1.546
33.496
Interest Expenses
-
-
228
49
-
194
Deutsche Bank
Annual Report 2014
120
1.4Information on forward and option agreements and other similar agreements with the Bank’s risk group
Direct and Indirect Other Components ink
and Joint Ventures
Risk Group
Current
Prior
Current
Prior
Current
Prior
Bank’s Risk Group
Period
Period
Period
Period
Period
Period
Transactions at Fair Value
Through Profit and Loss
-
-
2.423.944
652.755
-
End of the Period -
-
1.171.291
2.423.944
-
Total Profit / Loss
-
-
(82.828)
(242)
-
Transactions for hedging
purposes
-
-
-
-
-
End of the Period
-
-
-
-
-
Total Profit / Loss
-
-
-
-
-
2. Information on the Bank’s risk group
2.1The relations with entities that are included in the Bank’s risk group and controlled by the Bank
The Bank performs various transactions with the group companies as a part of the banking transactions in accordance with
the ordinary bank-client relationship and market conditions within the limitations determined by the Banking Law.
2.2The type of transaction, the amount and its ratio to total transaction volume, the amount of significant items and their
ratios to total items, pricing policy and other issues
Current Period
Prior Period
According to According to
the Amounts the Amounts
in the Financial in the Financial Amount
Statements%
Amount
Statements%
Banks
25.669
%73
33.920
%11
Loans and Other Receivables
96.218
%9
72.606
%8
Non-cash Loans
111.884
%53
113.634
%61
Deposits
34.892
%5
258.390
%44
Interest Income on Loans
2.114
%3
2.129
%6
Interest Expense on Deposits
228
%2
243
%3
Interest Expense on Funds Borrowed
56.614
%96
6.179
%100
Funds Borrowed
1.636.369
%100
1.071.818
%100
Fees and Commissions Received
26.778
%46
38.275
%56
Fees and Commissions Paid
1.573
%12
1.355
%11
Interest Expense on Money Market Placements
3.177
%100
1.615
%12
Other Operating Income
10.141
%62
12.651
%77
Other Operating Expense
7.156
%7
7.176
%8
Derivative Financial Instruments
589.496
%39
2.423.944
%66
Terms of transactions made with group companies are set in accordance with the market prices, if market prices do not
exist cost plus method is used. Except for the situations requiring separate disclosure, there is not any account balance that
is similar in nature and presented as an aggregate line.
Deutsche Bank
Annual Report 2014
121
2.3 Transactions recognized according to equity pick-up method
None.
2.4Information on transactions such as purchase-sale of immovable and other assets, purchase-sale of service, agent
agreements, financial lease agreements, transfer of the information gained as a result of research and development, licence
agreements, financing (including loans and cash or in kind capital), guarantees, collaterals and management contracts
The Bank has no agreement signed for asset purchases/sales, service rendering, agencies, finance lease contracts, research
and development and licences with the group companies as of 31 December 2014.
The service agreement signed with Deutsche Bank AG includes the conditions of calculation of service fee and cost based
on the annual defined rates and transfer of the calculated amount to the service-rendering bank’s account in cash, for
intermediary services performed by Bank’s sales executives in the transactions of other group companies and intermediary
services performed by sales executives of other group banks.
In accordance with the agreement signed with Deutsche Bank AG, which is valid since January 2004, the Bank pays a
service fee to Deutsche Bank AG in return for global and regional management, leadership and coordination activities
provided to the Bank by the top management of Deutsche Bank AG.
In accordance with the agreement signed with Bebek Varlık Yönetimi A.Ş., which is valid since January 2005, Bebek Varlık
Yönetimi A.Ş. pays a service fee to the Bank in return for the operational services that is provided by the Bank.
In accordance with the agreement signed with Deutsche Bank AG, which is valid since January 2005, Deutsche Bank AG
pays a service fee to the Bank in return for the services related to financial sector cash management products.
Deutsche Securities Menkul Değerler A.Ş. benefits from the Bank’s employees and similar services and hence pays in
return for these services to the Bank in the framework of the signed agreement.
2.5 Information on benefits provided to top management
Benefits paid to key management personnel in the current period amounting to TL 20.340 (31 December 2013: TL 17.172).
VIII.Explanations and notes to the domestic, foreign, off-shore branches and foreign representatives of the Bank
Bank has no domestic, foreign or off-shore branches.
IX. Explanations and notes related to subsequent events
1.Significant events and matters arising subsequent to reporting date and their financial statement effects
None.
Deutsche Bank
Annual Report 2014
122
SECTION SIX
OTHER EXPLANATIONS AND NOTES
I. Other explatanations related to the Bank’s operations
None.
SECTION SEVEN
EXPLANATIONS ON INDEPENDENT AUDITORS’ REPORT
I. Explanations on the independent auditors’ report
The financial statements and financial information together with its explanatory notes as at 31 December 2014 have
been audited by Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (“the Turkish member firm of KPMG
International Cooperative, a Swiss entity”) and an unqualified audit opinion is rendered on 13 March 2015.
II. Explanations and notes prepared by the independent auditor
None.
We aspire to be the leading client-centric
global universal bank
We serve shareholders best by putting our
clients first and by building a global network
of balanced businesses underpinned by
strong capital and liquidity.
We value our German roots and remain
dedicated to our global presence.
We commit to a culture that aligns risks and
rewards, attracts and develops talented
individuals, fosters teamwork and partnership
and is sensitive to the society in which we
operate.
Deutsche Bank A.Ş.
Trade Registry Number: 244378
Central Registration System Number (MERSIS): 0-8760-0487-2200015
Esentepe Mahallesi Büyükdere Caddesi
Tekfen Tower No: 209 K: 17-18
Şişli 34394 Istanbul / Turkey
Tel : +90 212 317 0100
Fax : +90 212 317 0105
www.db.com.tr
muhaberat.ist@list.db.com

Deutsche Bank A.Ş. Annual Report 2014

Transcription

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