annual report 2015

Transcription

annual report 2015

ŞEKERBANK A.Ş.
Emniyet Evleri Mahallesi,
Eski Büyükdere Caddesi,
No: 1/1A, Kağıthane-İstanbul
Tel: 212 319 70 00
İstanbul Ticaret
Sicil Memurluğu
Ticaret Sicil No: 536793
ANNUAL REPORT 2015
ŞEKERBANK ANNUAL REPORT 2015
This report has been published using recycled paper
and environment-friendly technologies.
FOR A SUSTAINABLE FUTURE, WE
SUPPORT INVESTMENTS THAT WILL
SAVE ENERGY AND INCREASE EFFICIENCY.
WITH EKOKREDİ, WE PROTECT NATURE
WHILE DECREASING OUR CUSTOMERS’
ENERGY COSTS.
WE SAVE ENERGY AND EFFORT!
With our responsible banking approach in line with our
founding mission, we approach sustainable development
from its social and environmental aspects. We finance
environmentally sustainable and socially inclusive growth.
In order to protect our natural resources and encourage
savings, in 2009, we developed EKOkredi, Turkey’s first
energy efficiency loan product. Having provided more
than TL 672 million in funding to approximately 79
thousand people with EKOkredi up until today, we
have prevented 5.2 million tons of CO2 emission.
We will continue to protect nature and prevent
wasted effort by promoting energy efficiency.
CONTENTS
INTRODUCTION
MANAGEMENT AND CORPORATE GOVERNANCE
06
07
08
09
10
11
12
14
18
22
24
26
28
30
32
34
35
36
37
38
41
42
43
44 Board of Directors
46 Senior Management
48 Summary Report of the Board of Directors Presented to the General
Assembly
50 Board and Committees Evaluation Disclosures
52 Succession Planning and Nomination in the Board of Directors
53 General Policy on Insider Trading
54 Activities of the Board of Directors
55 Corporate Governance Principles Compliance Report
68 Declaration of Compliance with Corporate Governance Principles
69 Corporate Governance Activities
69 Information on the Bank’s Transactions with its Risk Group
69 Profit Distribution Policy
70 Remuneration of the Members of the Board of Directors
70 Corporate Governance Rating
70 Internal Systems
71 Information on Support Services Providers
72 Şekerbank’s Policy against the Laundering of Criminal Proceeds and
Terrorism Financing
73 Declaration of Responsibility for the 2015 Annual Report
Mission, Vision and Values
Şekerbank’s Strategy and Position in the Sector
Ordinary General Assembly Agenda
Shareholding Structure
Amendments to the Bank’s Articles of Association and Explanations
Forward Looking Statement
Financial Indicators
Şekerbank Milestones
2015 in Stride
Chairman’s Message
General Manager’s Message
Small Enterprises Banking
Agricultural Banking
Retail Banking
Distribution Channels Management
Cash Management
Corporate and Commercial Banking
Financial Institutions
Information Technologies
Human Resources
Subsidiaries of Şekerbank
Independent Audit Company
Independent Audit Company’s Compliance Opinion
FINANCIAL INFORMATION
74
76
77
78
80
84
86
86
87
Disclosures on the Bank’s Financial Position, Profitability and Debt Servicing
Şekerbank’s Credit Ratings
Five-Year Financial Highlights
The Audit Committee’s Assessment of the Internal Systems in 2015
Risk Management System Strategy
Organization Chart of Şekerbank
Units Directly Reporting to General Manager
Units Directly Reporting to the Board Member Responsible of Internal Systems
Independent Auditors’ Report on Unconsolidated Financial Statements and Notes to the
Financial Statements for January 1 - December 31, 2015
163 Independent Auditors’ Report on Consolidated Financial Statements and Notes to the
Financial Statements for January 1 - December 31, 2015
241 Şekerbank Branches Geographic Distribution
4
EFFECTIVE RESULTS
WITH EKOKREDI(*)
CARBON EMISSIONS
PREVENTED
5.2
MILLION TONS
TOTAL AMOUNT OF
ENERGY SAVED
24.2
BILLION KWH
TOTAL AMOUNT OF
NATURAL GAS SAVED
201
MILLION M3
Since 2009
(*)
5
INTRODUCTION
NUMBER OF PERSONS
PROVIDED WITH ENERGY
EFFICIENCY FINANCING
OVER
71
THOUSAND
NUMBER OF SMES,
TRADESMEN AND
FARMERS PROVIDED
WITH ENERGY
EFFICIENCY FINANCING
7,733
NUMBER OF HOUSES
INSULATED
OVER
109
THOUSAND
6
MISSION, VISION AND
VALUES
OUR MISSION
With the Community Banking
understanding from village
to city, we are a modern
bank that considers both
local features and needs,
introduces banking services
to those who do not have
a banking account, grows
by creating value together
with its satisfied customers,
employees and partners, and
gains its strength from its
deep rooted past.
OUR VISION
To become the “leading
bank in financing small
enterprises” among
Turkey’s top ten private
banks in terms of asset
size.
OUR VALUES
OPEN COMMUNICATION
We respect different perspectives we are open to any suggestions
from our colleagues and customers. To add value to our Bank
and colleagues provide we share all kinds of ideas and knowledge
among all members of the organizational structure timely and in
a due manner, keeping communication channels open within the
organization.
CONTINUOUS DEVELOPMENT
We aspire and strive to acquire new thoughts, knowledge, and
skills with an interrogative viewpoint; we are willing to work
together and assume responsibility for continuous development of
ourselves and others.
CUSTOMER ORIENTATION AND ACTING LOCALLY
We take heed of meeting the expectations and needs of all our
customers and ensuring the customer satisfaction by presenting
the products and services rapidly and graciously, considering the
local features as well.
RESULT ORIENTATION
We take on focusing on the desired results/targets, taking actions
of our own accord and without delay to solve the emerging
problems, being followed, accomplishing our work while
increasing the profit and efficiency.
CORPORATE LOYALTY
We believe in the value of contributing to the performance of our
corporation and being loyal to our corporation by working in a
respectful, fair, self-sacrificing, sharing, participative manner and
with solidarity within our own team and with our other colleagues.
7
INTRODUCTION
ŞEKERBANK’S STRATEGY AND
POSITION IN THE SECTOR
Founded on October 12, 1953 through the contributions of hundreds of
thousands of farmers, the Anatolian beet cooperative members, with
the aim of supporting rural economic development, Şekerbank has
supported production for over 62 years by adhering to its founding
mission. Within its stated"Community Banking" mission the Bank
finances economic, environmental and social dimensions of sustainable
development.
Thanks to its expertise in local banking stemming from its extensive
network of branches, 66% of which are located in Anatolia and with
most having served customers in the same location for half a century,
Şekerbank boasts a broad customer base in SME, tradesmen, small
business and agricultural banking.
Taking into account the environmental and social impacts of the projects
financed within the lending processes, Şekerbank developed the first
banking product in Turkey that finances energy efficiency investments.
With this innovative product – EKOkredi – the Bank has introduced
approximately 79 thousand retail clients to energy savings; as a result,
the Bank has helped to prevent 5.2 million tons of carbon emissions to
date.
NUMBER OF CUSTOMERS
THE BANK HAS INTRODUCED
TO ENERGY SAVING
SINCE 2009
79 THOUSAND
Each year, Şekerbank measures its carbon emissions and reports the
results to international investors via the Carbon Disclosure Project
(CDP), one of the world's leading platforms in the fight against climate
change. The Bank is also a member of many other international
climate change platforms. In addition, Şekerbank ranks among the few
institutions in Turkey that are signatories to the UN Global Compact’s
Business Leadership Criteria on Carbon Pricing and the United Nations
Environment Program Finance Initiative (UNEP FI), which aims to support
sustainable financing and sustainable world economy.
By taking into account the social aspect of sustainable development, the
Bank implements Turkey's first and only micro-finance model in order to
increase access to financial resources. 42% of those funded under the
project, which targets to integrate people with limited access to financial
resources into the economy, are comprised of women in rural areas.
Giving priority to the Anatolian region in line with its founding mission,
Şekerbank pursues activities that finance and support environmentally
sustainable, socially inclusive and production based economic growth.
ENERGY SAVING INVESTMENTS,
FINANCED THROUGH EKOKREDI, HELPED
TO PREVENT 5.2 MILLION TONS OF
CARBON EMISSIONS TO DATE.
8
ORDINARY GENERAL ASSEMBLY
AGENDA DATED MARCH 30, 2015
1. Opening & Establishment of Presidential Board and to authorize the Presidential Board to sign the Minutes of Ordinary General Assembly.
2. Reading Board of Director’s Annual Report and discussion.
3. Reading Audit Summary Report and selection of Auditor for the year 2016.
4. Reading of Balance Sheet and Profit & Loss, Discussions, and Approval.
5. To discharge Board of Directors.
6. Approval of the substitute Members of Board of Directors who are assigned to serve residual term of membership of Board of Directors.
7. To discuss and approve the distribution of 2015 profit.
8. Amendment of the article 6 titled “Head Office and Branches” of the Articles of Association of the Bank as proposed by Board of Directors.
9. To set Board of Directors compensations.
10. To furnish information on donations of 2015 to our shareholders.
11. To inform the shareholders regarding guarantee, bail, mortgage, on its own behalf and in favor of the third persons given and revenue or benefits
derived.
12. To consent to Board of Directors to do business with the Bank according the Turkish Commercial Code 395 & 396.
13. Requests & Closing.
(*)
Information about performance of the duties in person or on behalf of others that are included within the range of the bank activities, being a partner in the companies
that are engaged in such activities and performance of other duties, which are allowed to the Members of the Board of Directors in line with the consent given at the Bank’s
Ordinary General Assembly Meeting held on the 19th of March 2015, is specified in the “Corporate Governance Principles Compliance Report” section of the Annual Report.
9
INTRODUCTION
SHAREHOLDING STRUCTURE
NUMBER OF SHARES
TOTAL NOMINAL
VALUE (TL)
OWNERSHIP
SHARE (%)
Şekerbank T.A.Ş. Voluntary Pension Fund
410,388,833.70
410,388,833.70
35.44
Samruk-Kazyna, the National Welfare Fund of Kazakhstan
224,353,416.50
224,353,416.50
19.37
BTA Securities JSC
126,295,033.47
126,295,033.47
10.91
1,009,312.08
1,009,312.08
0.09
395,953,404.25
395,953,404.25
34.19
1,158,000,000.00
1,158,000,000.00
100.00
SHAREHOLDER
Sugar Beet Cooperatives
Publicly Traded
TOTAL
1
35.44%
Şekerbank T.A.Ş. Voluntary Pension Fund
3
4
19.37%
2
Samruk-Kazyna, the National Welfare Fund of Kazakhstan
10.91%
3
BTA Securities JSC
0.09%
4
Sugar Beet Cooperatives
1
2
100%
5
34.19%
5
Publicly Traded
(*)
(**)
(***)
The Chairman of the Board of Directors Dr. Hasan Basri Göktan has total shares of 0.05 % in nominal, amounting to TL 577 thousand; Khosrow Kashani Zamani who is the
Board of Directors Member has total shares of 0.013 % in nominal, amounting to TL 148 thousand which they obtained from public offering.
The majority shareholders (who control the management of the Bank), the Board of Directors’ members, managers who have administrative responsibilities in Şekerbank,
and their spouses and blood relatives and relatives by marriage up to second-degree did not make any significant transaction with the Bank or its associate companies which
may lead to conflicts of interest and/or did not make any transaction, related to a commercial business that is within the scope of the Bank’s or its associate companies’ field
of activity for their own account or for the account of others or did not become unlimited partners in other companies carrying out similar commercial businesses.
Administrative or judicial penalties given to the Bank due to practices that are contrary to the provisions of the legislation are specified in the 31.12.2015 Unconsolidated
Independent Audit Report Section V/III-3 Explanations about Contingent Liabilities and Assets. 10
AMENDMENTS TO THE BANK’S
ARTICLES OF ASSOCIATION AND
EXPLANATIONS
During the 2015 fiscal year, the Article 8 of the Articles of Association was amended; due to increase of the capital to TL 1.158.000 the former and current
versions for the amended article of the Articles of Association was published in the Turkish Trade Registry Gazette 8867 dated July 22, 2015.
ŞEKERBANK T.A.Ş.
ŞEKERBANK T.A.Ş.
ARTICLES OF ASSOCIATION AMENDMENT TEXT
ARTICLES OF ASSOCIATION AMENDMENT TEXT
FORMER
NEW
The Share Capital
Article 8: The Company has adopted the registered capital system, pursuant
to the provisions of the Capital Market Law Numbered 2499, and has been
listed within the registered capital system, as per the permission of the
Capital Markets Board dated January 18, 2002 and numbered 5/47.
The Share Capital
Article 8: The Company has adopted the registered capital system, pursuant
to the provisions of the Capital Market Law Numbered 2499, and has been
listed within the registered capital system, as per the permission of the
Capital Markets Board dated January 18, 2002 and numbered 5/47.
The registered share capital of the Company is TL 1.250.000.000. - (one billion
two hundred fifty million Turkish Lira) and this share capital is divided into
1.250.000.000- (one billion two hundred fifty million) shares, each with a
nominal value of TL 1.
The registered share capital of the Company is TL 1.250.000.000. - (one billion
two hundred fifty million Turkish Lira) and this share capital is divided into
1.250.000.000- (one billion two hundred fifty million) shares, each with a
nominal value of TL 1.
The issued share capital of the Company is TL 1.087.186.884. - (one billion
eighty seven million one hundred eighty six thousand eight hundred eighty
four Turkish Lira) and is paid-up in entirety.
The issued share capital of the Company is TL 1.158.000.000. - (one billion one
hundred fifty eight million Turkish Lira) and is paid-up in entirety.
The registered capital ceiling authorization given by the Capital Markets
Board is valid for the years 2011–2015 (5 years). Even if the registered capital
ceiling is not reached at the end of year 2015, it is compulsory for the board of
directors to obtain authorization from the general assembly for a new period
by obtaining permission from the Capital Markets Board for the previously
permitted ceiling or a new ceiling amount to take capital increase decision
after the year 2015. If the company does not obtain the said authorization, it
will be deemed to have gone out of the registered capital system.
The registered capital ceiling authorization given by the Capital Markets
Board is valid for the years 2011–2015 (5 years). Even if the registered capital
ceiling is not reached at the end of year 2015, it is compulsory for the board of
directors to obtain authorization from the general assembly for a new period
by obtaining permission from the Capital Markets Board for the previously
permitted ceiling or a new ceiling amount to take capital increase decision
after the year 2015. If the company does not obtain the said authorization, it
will be deemed to have gone out of the registered capital system.
Provided that the provisions of the Capital Market Law, the Banking Law
and such other applicable legislation are duly complied with, the Board of
Directors shall be authorized to increase the share capital up to the limit set
for the registered capital, through the issuance of registered shares.
All shares issued by the Company shall be registered shares and shall be
quoted in the Stock Exchange.
Provided that the provisions of the Capital Market Law, the Banking Law
and such other applicable legislation are duly complied with, the Board of
Directors shall be authorized to increase the share capital up to the limit set
for the registered capital, through the issuance of registered shares.
All shares issued by the Company shall be registered shares and shall be
quoted in the Stock Exchange.
Principles related to the function of general assembly meetings of shareholders, rights of shareholders and the exercising of such rights are stipulated in the
Bank’s Articles of Association and Corporate Governance Policy; both of these documents are available on the Bank’s website, at www.sekerbank.com.tr.
INTRODUCTION
11
FORWARD-LOOKING
STATEMENT
This report contains information that may constitute ‘forward-looking
statements.’ Generally, the words ’believe,’ ‘expect,’ ‘intend,’ ‘estimate,’
‘anticipate,’ ‘project,’ ‘will’ and similar expressions identify forwardlooking statements, which are not historical in nature. However, the
absence of these words or similar expressions does not mean that a
statement is not forward-looking. All statements that address operating
performance, events or developments that we expect or anticipate
will occur in the future-including statements relating to volume
growth, share of sales and earnings per share growth, and statements
expressing general views about future operating results – are forwardlooking statements.
The Board of Directors believes that these forward-looking statements
are reasonable as and when made. However, caution should be taken
not to place undue reliance on any such forward-looking statements
because such statements speak only as of the date when made. The
Bank undertakes no obligation to publicly update or revise any forwardlooking statements, whether as a result of new information, future
events or otherwise, except as required by law. In addition, forwardlooking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from our Bank’s historical
experience and our present expectations or projections. These risks
and uncertainties include, but are not limited to, those described in Part
3, ‘Assessment of the Audit Committee on the Functioning of Internal
Systems’ and elsewhere in this report and those described from time to
time in our future reports filed with the Capital Markets Board.
12
FINANCIAL INDICATORS
UNCONSOLIDATED FINANCIAL INDICATORS
(TL THOUSAND)
2012
2013
2014
2015
14,517,918
18,725,017
21,187,288
24,415,966
10,084,765
13,546,424
14,655,079
16,737,565
1,824,741
2,055,448
2,391,813
2,526,942
Total Deposits
10,137,906
12,639,239
13,538,608
14,867,633
Pre-Tax Profit
310,685
264,339
280,701
85,246
Net Profit
240,302
210,216
223,969
102,649
Total Assets
Total Loans (Net)
Shareholders’ Equity
24,416
TOTAL
ASSETS
21,187
18,725
14,518
INCREASE
15.24%
2012
2013
2014
2015
16,738
TOTAL LOANS
(NET)
13,546
14,655
10,085
INCREASE
14.21%
2012
2013
2014
2015
13
INTRODUCTION
UNCONSOLIDATED FINANCIAL RATIOS
Net Profit / Total Assets
2012
2013
2014
2015
Capital Adequacy Ratio
14.48
13.54
14.60
13.66
Total Securities / Total Assets
13.96
9.03
11.46
12.30
Total Loans / Total Assets
69.46
72.34
69.17
68.55
Deposits / Total Assets
69.83
67.50
63.90
60.89
2,527
2,055
SHAREHOLDERS’
EQUITY
2,392
1,825
INCREASE
5.65%
2012
2013
2014
2015
14,868
TOTAL
DEPOSITS
12,639
13,539
10,138
INCREASE
9.82%
2012
2013
2014
2015
14
ŞEKERBANK MILESTONES
Solid Foundation
Şekerbank’s foundation was laid
with the establishment of Pancar
Kooperatifleri Bankası (Sugar Beet
Cooperatives Bank) in Eskişehir in
October 12, 1953. The Bank’s mission
during those early years was to meet
the funding needs of sugar beet
producers and their industry.
1953
New Products and Services
In this period marked by change and
growth, the Bank gradually evolved from
a cooperatives’ bank to a full-service
bank capable of providing a full range of
products and services. The Bank opened
a representative office in Cologne,
Germany in 1972. By 1979, Şekerbank’s
service network totaled 134 branches.
1956
From Eskişehir to Ankara
The Bank’s Head Office was relocated to
Ankara and with the Council of Ministers’
decree its name was changed to
Şekerbank Türk Anonim Şirketi.
1970s
Private Bank Status
A total of 10% of the outstanding shares
of T. Şeker Fabrikaları T.A.Ş. were acquired
by Pankobirlik (7%), and Şekerbank T.A.Ş.
Voluntary Pension Fund (3%) from the Public
Participation Administration of Turkey. As a
result, Şekerbank ceased to be part of the
public sector. Subsequently, the Bank was
restructured with a private sector commercial
bank approach.
1980s
A period of Focusing on Commercial Banking
During this period, Şekerbank focused on
commercial banking. By 1983, the number
of branches had risen to 161. The Bank
increased its foreign trade transactions and
strengthened its correspondent banking
relationships. The Şeker Çocuk (Şeker Child)
Magazine launched and Şekerbank opened one
of Turkey’s first bank art galleries in Ankara.
1993
15
INTRODUCTION
2008
First Turkish Bank Assigned a Corporate
Governance Rating
Şekerbank became the first bank in the
country to receive a corporate governance
rating as a result of a criteria assessment
of “Shareholders,” “Public Disclosure and
Transparency,” “Stakeholders” and “Board
of Directors” provided by ISS Corporate
Services Inc., recognized as the world’s
leading corporate governance rating firm
and authorized by the Capital Markets Board
to provide services in Turkey.
2002
Customer-Oriented Service
Şekerbank initiated a comprehensive restructuring
program to transform into a customer-oriented,
multi-channel bank.
Transfer of Shares
Şekerbank’s majority shares
changed hands: a 51% stake
was acquired Şekerbank
T.A.Ş. Voluntary Pension
Fund and Şekerbank
Personnel Social Security
Foundation.
1997
2000
Initial Public Offering
Şekerbank completed an initial
public offering of its shares and
became institutionalized. With
a major corporate development
initiative implemented during the
same period, the foundation for a
more modern and contemporary
Şekerbank was laid.
2003
50th Anniversary
Şekerbank became one of the cornerstones of the
Turkish Banking Sector in its 50th year.
2009
EKOkredi Launched
Şekerbank launched EKOkredi, a
groundbreaking product in Turkey to finance
energy savings and efficiency initiatives
targeted as protection of natural resources
and waste prevention. It was selected as the
Banking Product of the Year in 2009 at the
Active Academy Finance Summit.
2004
The Redesigned Corporate Identity
Şekerbank relocated its Head Office to a new
office building; in addition, the Bank redesigned its
corporate identity and logo.
2002-2004
2007
2008-2009
Turkey’s Fastest Growing Bank
Şekerbank ranked 6th among the world’s 50
fastest growing banks in The Top 1000 World
Banks survey conducted by The Banker Magazine,
a leading international finance publication, and
was named Turkey’s fastest growing bank thanks
to its strong performance.
16
ŞEKERBANK MILESTONES
One of the 5 Turkish Banks included in
the CDP report
Şekerbank was one of five Turkish
banks included in the 2010 report of
the Carbon Disclosure Project (CDP),
one of the most important worldwide
environmental initiatives.
2010
Turkey’s “Sustainable Development” Representative
As a result of an assessment conducted by the Turkey’s
Ministry of Development, Şekerbank’s project was named
one of the best country applications in sustainable
development and green economy at the Rio+20 United
Nations Conference on Sustainable Development. Şekerbank
participated in Rio+20 as the sole representative of the
Turkish financial services industry.
2011
First Turkish Lira-Denominated Borrowing Transaction Covered by
SME Loans in the World
The Şekerbank issuance was the first Turkish lira-denominated borrowing transaction
structured in international capital markets as well as the world’s first asset-backed
security issue covered by SME loans. The Bank’s covered bond program established
a major financing bridge between international financial institutions and Turkey’s
craftsmen and small enterprises.
Contemporary Art in Anatolia with Açıkekran
In line with its sustainable development strategy and the corporate objective of
increasing access to contemporary art and culture, Şekerbank founded Açıkekran
New Media Arts in May 2011. Rather than being a conventional gallery project that is
limited to a physical venue, Açıkekran is a contemporary arts platform that embraces
the wide range of possibilities of new digital media and that is accessible to the public
via the Bank’s branches. Açıkekran hosts curated exhibitions that bring together major
artists and new talents. With Açıkekran, Şekerbank provides local communities with
an opportunity to meet contemporary art through its extensive branch network.
2012
2013
An Open Door for Small Businesses: The 15th of
Every Month is “Small Businesses Day”
Focusing on local development and supporting production in
line with its “Community Banking” mission, Şekerbank created
a groundbreaking platform for more than 1.5 million tradesmen
in Turkey during its 60th anniversary year. The Bank declared the
15th of every month a “Small Business Day” as part of its “Open
Door for Small Business” initiative. The platform was unveiled
with the sponsorship of the Ministry of Customs and Trade and
with the support of the Confederation of Turkish Tradesmen
and Craftsmen (TESK), a nationwide organization. The “Open
Door for Small Business” in effect brings small enterprises
together with the private sector, public sector, NGOs and
consumers. Şekerbank carries out its activities focusing on local
development and support on production.
17
INTRODUCTION
Şekerbank hosted Nobel Laureate Prof. Robert J. Shiller at the
Financing Sustainable Development Conference
At the Financing Sustainable Development Conference held as part
of the Bank’s 60th anniversary celebration, Şekerbank welcomed
one of the world’s leading economists, the winner of the 2013 Nobel
Prize for Economics, Robert J. Shiller, a Sterling Professor at Yale
University, the Ivy League Institution’s highest academic rank. Hosted
by Dr. Hasan Basri Göktan, the Chairman of Şekerbank’s Board of
Directors, the conference featured a keynote address by the Minister
of Finance, Mehmet Şimşek, and attracted a huge turnout from the
business and finance world.
A First in the World: Family Farming Banking
To stem the tide of rural-urban migration and provide support to
rural development, in November 2014, Şekerbank launched Family
Farming Banking, a first of its kind worldwide. Launched in line with
the Bank's founding objective of supporting agricultural production,
this innovative initiative provides financing opportunities to farmers
whose incomes have been reduced and who have left their village
due to reasons such as divided or shrinking agricultural land holdings
via inheritance, limited irrigation facilities and a lack of modern
farming techniques. Through the effective, communication of the
project, significant awareness was generated among the public about
the importance of agriculture and rural development.
2014
2015
Şekerbank Moves to New
Headquarters
During its 62nd anniversary
year, Şekerbank moved into its
new headquarters in Istanbul,
a landmark building that bears
its name. The new head office
is located in Levent, a central
district that is home to many
important financial institutions. The
structure stands out with its unique
architectural style that symbolizes
the Bank's long history and has
quickly become a key prestige
factor for Şekerbank.
18
2015 IN STRIDE
JANUARY
FEBRUARY
MARCH
Quarter Gold Coin Entices Retirees to Transfer
Pension Accounts to Şekerbank
Aiming to deliver customized services that
meet the needs of various customer segments,
Şekerbank launched the “Altın Hediyeli Emekli
Maaş Kampanyası (Retirement Pensions with
Gold Bonus Campaign).” Under this campaign,
the Bank presented quarter gold coins to
Social Security Institution (SGK) retirees
who transferred their pension payments to
Şekerbank. Along with the quarter gold coin
bonuses, the Bank provided many exclusive
services for pensioner customers, including
account management fee exemption, free
money transfer/EFT transactions and physical
delivery of pension payments to homes of
retirees in poor health.
Şekerbank Stands by Marketplace Tradesmen
and Bakery Owners
With the objective of increasing production by
supporting tradesmen and businesses, which
form the backbone of the nation’s economy,
Şekerbank developed specific service packages
for marketplace tradesmen and bakery
owners. Banking products and discounts that
were specially designed to meet all the financial
needs of marketplace tradesmen, who are at
the heart of everyday business, were provided
by the “Taptaze Destek Paketi (Fresh Support
Package).” Meanwhile, bakery owners, who are
directly involved in the production sector, were
offered the “Ekmeğine Destek Paketi (Bread
Support Package).”
Account Holders Win Day and Night
Şekerbank offered the “Gece Gündüz Hesabı (Day
and Night Account)” to customers who want to
accumulate savings with small amounts. Opened
with an advantageous introductory interest rate,
“Gece Gündüz Hesabı” enables customers to
earn interest from TL demand deposits while
executing their everyday banking transactions. In
addition, account holders have the option to use
the demand deposits, in which the daily payment
transactions are carried, as term deposits.
“Respect to People Award” Goes to Şekerbank
Şekerbank was presented with the “Respect for
People” Award for 2014 year by Kariyer.net, a
recruiting website. The Bank was awarded this
honor thanks to the 100% same-day responses
to the job applications it receives and the timely
feedback it provides to applicants at every step
of the application process.
Şekerbank Provides Support to Our Common
Cultural Heritage: Turkish Coffee
In order to facilitate the protection and
widespread recognition of our cultural
heritage and to ensure that it is passed on to
new generations, Şekerbank supported the
recognition of “Turkish Coffee Culture and
Tradition” as Turkey's 11th registered heritage in
UNESCO’s Representative List of the Intangible
Cultural Heritage of Humanity in 2013. The Bank
was the main sponsor of the “Bir Taşım Keyif
– Türk Kahvesinin 500 Yıllık Öyküsü (The 500
Year History of Turkish Coffee)” exhibition held
at Topkapı Palace Has Ahırlar and of the book
bearing the name of the exhibition.
19
INTRODUCTION
APRIL
JUNE
JULY
“Fastest Growing Bank in Business Credit
Cards” Award Goes to Şekerbank
Allocating 88% of its total loan portfolio to
commercial loans in line with its “Community
Banking” mission, Şekerbank was designated
by MasterCard as the “Fastest Growing
Bank in Business Credit Cards of the Year”
in 2014. Thanks to the spectacular growth
demonstrated by “Üreten Kart (Producer
Card)” – a one of a kind offering in the industry
that combines credit card and debit card –
during its first year, Şekerbank received an
award from MasterCard for a second time.
Energy Efficiency Loans for Urban
Transformation Projects
To date, Şekerbank has provided more than
TL 672 million in financial support through the
EKOkredi program, which was developed by
the Bank in 2009 to promote energy efficiency
investments. As an expansion of this successful
initiative, the Bank extended financing to
demolish and reconstruct high risk buildings
in keeping with the energy efficiency criteria
under the Turkish Residential Energy Efficiency
Financing Facility (TuREEF) of the European
Bank for Reconstruction and Development
(EBRD). The Bank’s Reconstruction Loan offers
customers the opportunity to enjoy energy
efficient housing that construction firms will
build with high quality materials. As a result,
customers benefit from decreased energy
expenditures and the environment experiences
reduced carbon emissions.
Tradesmen, Farmers and Enterprise Owners
Came Together at Ramadan Iftar (Break-theFast) Meals Hosted by Şekerbank
Providing support to production and local
development, Şekerbank has been meeting
with tradesmen and enterprise owners at
iftar (break-the-fast) meals during the month
of Ramadan. “Producing Anatolia Meetings”
iftar events hosted by Şekerbank branches
across the country brought together local
public administrators, tradesmen, farmers and
representatives from the business community.
MAY
Şekerbank is the First Bank to Offer Customers
QR Coded Checks
Şekerbank was the first bank in Turkey to offer
customers QR Coded Checks developed by the
Kredi Kayıt Bürosu (Credit Registry Bureau) to
enable more secure check payment. With this
innovative application, which is expected to
become a symbol of prestige in check writing,
the Bank helped to increase the security
of check collection and to facilitate trade
transactions.
USD 75 million in Funding to Producers
Şekerbank secured a USD 75 million 5-year
term lending facility from the International
Finance Corporation (IFC), a member of the
World Bank Group. With this facility, the Bank
provided funding to SMEs, micro-enterprises,
agricultural businesses and farmers.
20
2015 IN STRIDE
AUGUST
SEPTEMBER
OCTOBER
Significant Support for Energy Efficiency with
EKOkredi – Real Sector Cooperation
Under the EKOkredi program, developed as
a first in Turkey to expand energy efficiency
capital investments, Şekerbank continued
to cooperate with the real sector. In April,
together with Filli Boya Capatect, the Bank
launched an insulation campaign in Turkey.
In August, via a collaboration with Baymak,
Şekerbank facilitated electricity production
from solar energy for both residential
housing and office buildings. While the
Bank collaborates with Weber in the area of
insulation, it also held meetings with the All
Energy Producers and Consumers Associations
Federation (Energy Federation) in order to
support investments in renewable energy, in
particularly solar.
Açıkekran Welcomes a Performance Art
Legend: Ulay
Şekerbank Açıkekran New Media Art Gallery
hosted the solo exhibition “Kimliksizleşme
ve Dönüşme (Disidentification and
Transformation)” by Ulay, one of the biggest
names in performance art, video art and
photography. Ulay also gave a lecture on his
artistic experience and performance art in
Istanbul, where he traveled to for the first time.
An exhibition of Ulay’s early works in the 1970s
was made available 24/7 to viewers on special
monitors via nine Bank's branches in eight
cities.
Women Farmers Become Employers
To prevent rural-urban migration by increasing
the number of women entrepreneurs and
projects developed by women farmers in rural
areas as part of “Family Farming Banking”,
Şekerbank supported the Program for
Reinforcement of Women's Entrepreneurship
in Agriculture launched by the Ministry of Food,
Agriculture and Livestock. Under the program,
entrepreneurial trainings were conducted
for 407 female farmers in eight cities. A
winner was selected in each city among the
entrepreneurship projects developed by 407
women farmer participants; and these winners
convened in Istanbul on October 15, World
Women Farmers Day. Şekerbank provided
support for the implementation of the top
projects, selected among the winners from 8
cities.
Şekerbank in New Headquarters
Founded 62 years ago in Eskişehir, Şekerbank
moved its head office to Ankara in 1995 and
subsequently to Istanbul in 2004. During its 62nd
anniversary year, the Bank moved into its new
headquarters building in Istanbul to achieve
more efficient execution of its expanding
business and operational processes.
21
INTRODUCTION
NOVEMBER
DECEMBER
Various Awards for “Family Farming”
Advertising Campaigns
In 2015, the Bank's Family Farming Banking
initiative and related advertising campaigns
received recognition in the form of 20
awards from many prestigious national and
international organizations. The awarding
institutions included the 62nd Cannes Lions
International Festival of Creativity; Golden
Drum; Midas Awards; MediaCat Felis; Crystal
Apple Effie Turkey; Sustainable Business
Awards held by Sustainability Academy; and the
Innovative Sustainability Practices Competition
held by the Sustainable Development
Association.
Şekerbank Support for Carbon Pricing
Şekerbank signed the Business Leadership
Criteria on Carbon Pricing, which was launched
worldwide under the United Nations Global
Compact and that expresses the business
world’s support of carbon pricing in the fight
against climate change. In accordance with the
criteria signed by 65 institutions worldwide,
Şekerbank will set a carbon price in order to
influence project-financing decisions, reduce
greenhouse gas emissions and advocate for
the importance of the carbon price issue within
Turkey’s regulatory framework.
Şekerbank’s Website Revamped
Şekerbank refreshed its website to have a
systems infrastructure compatible with new
technological trends, a design that is simple
and clear, and has a greater ease of use. The
renewed sekerbank.com.tr highlights the
Bank's products and services with a plain
format in line with the Şekerbank strategy of
facilitating easy access to users so they can
easily find what they are searching for.
Şekerbank Signed UN Environment Program
Finance Initiative
Şekerbank became a signatory to the United
Nations Environment Program Finance
Initiative (UNEP FI). As one of the three UNEP
FI member banks of Turkey, Şekerbank will
expand its energy efficiency efforts, integrate
sustainability into its systems to a greater
degree and conduct global studies on the
subject together with other financial sector
representatives.
Şekerbank Secured Turkey's First 5-year
Syndicated Loan Facility
Şekerbank obtained a syndicated loan worth
USD 115 million with a 5-year term. The
multicurrency (TL, Euro, USD) loan consists
of four different tranches with varying
maturities of up to five years provided by the
co-leads, Dutch Development Bank and Korean
Development Bank, with the participation of
leading Asian and European institutions. As
Turkey's first 5-year syndicated loan, the facility
was secured to fund SMEs, foreign trade
activities and energy efficiency investments.
22
CHAIRMAN’S
MESSAGE
Dear Shareholders,
Dominated by uncertainties in the global economy – low economic
growth and a low risk appetite – 2015 was also marked by the US Federal
Reserve’s (Fed) decision to raise interest rates. With this development,
the era of cheap and abundant money stoking the world’s economy over
the last seven years came to an end.
Despite troubles in the global economic environment and clear
geopolitical risks, Turkey has come a long way toward its goal of
reducing the country’s foreign financing need and in decreasing its debt
burden thanks to a tight public finance. This approach allowed Turkey
to demonstrate greater economic potential and positively differentiate
among other emerging markets.
Turkey’s commitment to implementing needed structural reforms to
reach the targets in the government’s Medium Term Program – thus
achieving economic growth based more on production and investment
rather than consumption – played a key role in maintaining this positive
differentiation.
Looking at the developments in our sector, we see that profitability was
under pressure during the year due to the depreciating Turkish Lira;
increasing provision and operating costs; rising funding and currency
swaps’ costs. While the banking industry averaged an annual 19% return
on capital over the last 10 years, this key ratio dropped to about 10%
sector-wide in 2015.
As you all well know, Turkey’s banking industry has made a significant
shift in recent years to embrace SME lending and agricultural financing.
Following periods of rapid economic growth fueled by consumption,
effected by the changes in the retail banking regulations our sector has
put more focus on SMEs, agricultural financing and the real sector to
create more financial stability.
Promoting broad-based savings, prioritizing production oriented loans
and focusing on SME financing in our country, where domestic savings
and capital accumulation are low, are critical in reaching a sustainable
economic expansion rate. As a result, the financial services sector leads
all others in its contribution to growth. Including many prestigious, highly
competitive international institutions and well-skilled human resources,
the Turkish banking industry has expanded in tandem with Turkey over
the last 10 years. Between 2006 and 2015, the sector’s loans to balance
sheet ratio increased to 63% while the loans to GDP ratio is expected to
come in at about 77%.
23
INTRODUCTION
With our social development-based approach
to banking, we strive to carry out our founding
mission, fulfill our dual objective of supporting
production and fostering savings, and continue our
leading role in financing sustainable development.
In line with its Community Banking mission, Şekerbank allocates 88% of
its lending portfolio to agriculture, craftsmen, SME and corporate loans,
maintaining leadership in this segment. Şekerbank’s responsible banking
approach coupled with its mission to support production and sustainable
development has been a key driver of the Bank’s operations for 62 years.
We continue to closely monitor the environmental and social impacts of
the projects we finance via our lending activities and to play an active role
in international platforms to combat climate change. In 2015, Şekerbank
measured its own carbon emissions and reported it to international
investors via the Carbon Disclosure Project (CDP).
With the aim of carrying out our founding goal to support agricultural
production via Family Farming Banking, we provided over TL 1.6 billion of
financing for the agricultural sector in 2015 to ensure that our farmers
keep producing and stay on their land.
With our social development based approach, we will continue to pursue
our founding mission of supporting production and fostering savings,
while maintaining our leading role in financing sustainable development
in the coming year.
Meanwhile, our groundbreaking EKOkredi product, launched in 2009
to expand energy efficiency investments and support the sustainability
of natural resources, continued to reap energy savings for individuals,
craftsmen, small enterprises and farmers in 2015. To date, our EKOkredi
solution has provided financing in excess of TL 672 million, introduced
energy savings to 79 thousand persons and financed insulation projects
for over 109 thousand homes.
I would like to wish our employees a successful year ahead as we work
together to achieve even greater efficiency by executing a focused
strategy in line with our mission. I also extend my gratitude to all our
shareholders, local and international business partners, and financial
institutions who believe in our strategy as well as the public institutions
that appreciate our efforts.
Respectfully yours,
DR. HASAN BASRI GÖKTAN
Chairman of the Board of Directors,
Executive Board Member
24
GENERAL MANAGER’S
MESSAGE
Esteemed Stakeholders,
Having pursued a mission to support rural production and development
for 62 years, Şekerbank has played a leading role in financing sustainable
development with its founding principle of socially responsible banking.
Fostering an integrated approach to sustainable development – with
its social, environmental and economic dimensions – our Bank shapes
its strategies to finance growth that is environmentally sustainable and
socially inclusive.
Despite all the uncertainties in the global economy and challenges in the
domestic market during the year, Şekerbank maintained its support for
the real sector and the Turkish economy in 2015. The Bank continued to
be a major supporter of the country’s economic producers – farmers,
craftsmen, small enterprises and entrepreneurs – in line with its
founding mission that views these customers as business partners.
According to the unconsolidated financial statements dated December
31, 2015, Şekerbank total assets reached TL 24.4 billion, growing by 15%
compared with the prior year. As of 2015 year-end, the Bank’s total loan
volume was TL 16.7 billion.
Continuing its successful performance in financing production,
Şekerbank has achieved 32% growth of agricultural loans portfolio. As
of 2015 year-end the agricultural loan portfolio reached TL 2.1 billion,
capturing 11% market share in agricultural loans extended by private
banks.
We have generated greater public awareness of the significance of
agricultural production with the Family Farming Banking service, a
first-of-its-kind in the world, which launched at end-2014 in line with
our founding goal of providing support to agricultural development.
In 2015, we reached out to 20 thousand new farming families under
this innovative initiative. With Family Farming Banking, we have helped
prevent rural-to-urban migration by supporting projects that aim
to transform farmer women in rural areas into entrepreneurs and
encourage their entrepreneurial efforts in their regions. In coordination
with the Ministry of Food, Agriculture and Livestock, we provided 407
women farmers in eight cities with assistance via entrepreneurial
trainings and helped with realization of the awarded projects.
25
INTRODUCTION
While creating a broad awareness of the
importance of energy saving, we have
contributed to the recovery in the economy
and the labor market.
Having provided support to the craftsmen and small enterprises that
drive Turkey’s economy in 2015, our Bank continued to develop special
support packages that meet the specific needs of enterprises in target
sub-sectors, such as opticians and bakeries. While helping lower the
energy costs of craftsmen and small enterprises via collaborations
with the real sector, we also provided banking products and services
specially designed to meet the financial needs of female members of
TESK (Confederation of Turkish Tradesmen and Craftsmen) through a
partnership with that organization. Additionally, we moved forward with
our ongoing efforts to fund energy efficiency projects in 2015. As the
first bank to join the Turkey Residential Energy Efficiency Finance Facility
(TuREEFF) program, we signed new cooperation agreements during the
year with NGOs and representatives of the real sector, including Filli Boya
Capatect, Baymak, Weber and Energy Federation. With these efforts, we
have contributed to the recovery in the economy and the labor market,
while creating a broad awareness of the importance of energy saving.
After launching a micro financing model, the first and only one of its
kind in Turkey, in order to further spread access to financial services,
Şekerbank took significant steps in 2015 to expand the project and
ensure that it has world class quality standards. With this innovative
micro financing model, which provides support to craftsmen and
farmers who produce locally and who were unbanked previously, our
Bank will continue to play a leading role in financing inclusive growth in
the coming period.
I give my deep thanks to all our employees and stakeholders who are
the architects of our Community Banking mission. I would also like to
extend my gratitude to all our shareholders and the members of the
Board of Directors for their continuous support throughout our journey
to sustainable success.
Respectfully yours,
HALIT YILDIZ
General Manager
26
SMALL
ENTERPRISES
BANKING
Ramping its support to women entrepreneurs
as the first bank to sign an agreement with
TESK (Confederation of Turkish Tradesmen and
Craftsmen) that targets tradeswomen, Şekerbank
provided this segment with many specially
designed services, ranging from education and
insurance, to advantageous financing and free-ofcharge banking products.
In 2015, Şekerbank continued to provide tradesmen and SME customers
with customized, differentiated products and services through the SME
Banking business line while undertaking first-time applications in Turkey
under its “Community Banking” mission.
GROWTH BY NUMBERS
In 2015, Şekerbank’s SME Banking line disbursed, cash loans to the
focused segments of tradesmen and micro business outperforming the
sector with 12.26% growth. Cash loans to the tradesmen segment, which
the Bank has focused its efforts to since 2013, increased 22.97% in 2015.
With this growth, the Bank's market share in the cash loans to these
focused segments was 2% as of November 2015.
In 2015, demand deposits of SME Banking customers increased 9.44%.
A 65.45% expansion in the customer base and a 76.47% increase in
SME Banking member merchants turnover during the year played an
important role in this development.
Şekerbank was the first
bank in Turkey to offer
customers QR Coded
Checks developed by
Kredi Kayıt Bürosu
(Credit Registry Bureau).
Şekerbank’s insurance services business volume, in terms of premium
generation, was up 22.41% for SME and Agricultural Banking.
MARKETING ACTIVITIES
Under the “Üreten Anadolu Buluşmaları (Producing Anatolia Meetings),”
iftar invitations were hosted by Şekerbank between July 1 and July
16, 2015 in eight provinces: Kayseri, Uşak, Afyon, Bolu, Konya, Adana,
Amasya and Sivas. These iftar gatherings had about 3 thousand
attendees including local authorities, tradesmen, farmers and business
representatives. In addition, agreements were signed with tradesmen,
craftsmen and trade and industry chambers in the eight aforementioned
cities.
As part of its efforts related to energy efficiency investments, the Bank
strengthened its existing partnerships with the real sector via EKOkredi
and initiated new collaborations in 2015. Within this scope, cooperation
agreements signed with Zorlu Elektrik, and Şekerbank customers had
the opportunity to benefit from discounts of up to 13% in their electricity
use. The Bank cooperates with the Energy Association for the financing
the renewable energy investments, especially solar power plants that are
expected to gain more importance in the upcoming period. Şekerbank
continues to support renewable energy investments with promotion
campaigns aimed at the dealers of the companies that it previously
collaborated via EKOkredi, such as Baymak and Betek.
In 2015, while ensuring the Bank’s participation in 15 domestic and
international fairs, Şekerbank entered into new agreements with more
than 50 local non-governmental organizations (e.g. confederations,
chambers, unions). Ramping up its support to women entrepreneurs,
tradesmen and business owners, Şekerbank became the first bank to
sign an agreement with TESK (Confederation of Turkish Tradesmen and
27
INTRODUCTION
Şekerbank’s cash loans disbursed
to the focused segments of
tradesmen and micro business,
outperformed the sector with
12.26% growth.
Craftsmen) regarding tradeswomen. With this cooperation agreement,
the Bank provided many special services to tradeswomen, ranging from
education and insurance, to advantageous financing and free-of-charge
banking products.
PRODUCTS AND SERVICE PACKAGES
With “Üreten Kart (Producer Card),” the Bank's commercial card
portfolio expanded 117.04% reaching about 45 thousand cards by 2015
year-end. In line with the additional improvements made in 2015, each
new SME Banking customer that opened an account with the Bank,
automatically received a Producer Card.
During the year, Şekerbank made major improvements to the POS
product. These upgrades included "Fix POS," which offers an alternative
low-cost operating mode with advance commission packages for
the merchants with low turnover and "Currency POS," which allows
cardholders to make payments in currency of their choice. The social
security premium payments with Şekerbank cards have been enabled via
a virtual POS application under the “KKB Ödeme Geçidi (Credit Registry
Bureau Payment Gateway)”.
Şekerbank was the first bank in Turkey to offer customers QR Coded
Checks developed by the Kredi Kayıt Bürosu (Credit Registry Bureau) in
2015 to enable more secure check payment. As of 2015 year-end, QR
Coded Checks were submitted to more than 5 thousand SME customers.
In recent years, credit products with payment plans tailored to seasonal
revenue flows and discounts provided for frequently used banking
transactions are becoming increasingly widespread. Having rolled out
the “Turizme Beş Yıldızlı Destek Paketi (Five Star Support Package to
Tourism)” in 2014, Şekerbank continued to develop industry specific
product/service packages. It also expanded into niche sectors with
a range of offerings that included “Gözlükçülere Özel Destek Paketi
(Opticians Support Package),” “Taptaze Destek Paketi (Fresh Support
Package)” for marketplace tradesmen and “Ekmeğine Destek Paketi
(Bread Support Package)” designed specifically for bakers. Signing
protocols with the NGOs of such customers in addition to the facilities
provided under the Producer Card/Şeker Şirket allowed flour plant
dealers and cooperatives putting cash flow under control.
CAMPAIGNS
Throughout 2015, the Bank conducted about 20 campaigns that targeted
SME Banking customers for a variety of products. The campaigns
launched in the previous year, like the "Hemşerim Kredisi (My Fellow
Townsmen Loan)” campaign, specially developed for the anniversaries
of the Bank's branches and the "Kahraman Kredi (Hero Loan)” campaign,
available on the cities’ liberation days have been continued. Furthermore,
local campaigns repeated throughout the year, and campaigns like
“İşinize Ramazan Bereketi” (Ramadan Prosperity To Your Business)
and “Nefes Aldıran Kredi” (Relieving Loans) were organized in order to
increase the volume of installment loans; and in addition to the loan
campaigns organized in different segments, campaigns supporting cross
sale, like “Çek bi’ POS”, were launched.
Providing exclusive banking service to SMEs and tradesmen, Şekerbank’s
SME Banking plans to continue offering developed in 2015 sector-specific
products and services that support local production and producers in
2015.
28
AGRICULTURAL
BANKING
In 2015, Şekerbank’s
agricultural loans
increased by 32% as its
loan volume exceeded
TL 2.1 billion.
As part of the Bank’s Anatolian tours, which target
the agricultural sector and have been conducted
every year since 2008, Şekerbank representatives
have visited some 8,900 villages and contacted
266 thousand farmers to date.
In line with the Bank’s “Family Farming Banking” strategy, Şekerbank
Agricultural Banking continued to embrace the Community Banking
mission in 2015. To this end, it carried out pioneering activities in Turkey,
such as product offerings that meet the specific financial needs and cash
flow requirements of small family businesses and agricultural producers.
In order to boost service quality, specialize by sectors, speak the same
language with farmers and better understand the local features,
Şekerbank Agricultural Banking serves its farmer customers with nearly
250 dedicated Agricultural Banking Customer Representatives in more
than 160 branches. The majority of these specialized representatives are
agricultural engineers or regional experts.
GROWTH BY NUMBERS
In 2015, Şekerbank’s agricultural loans increased by 32% as its loan
volume exceeded TL 2.1 billion. The number of loan customers rose 25%
over the same period. Thanks to this growth in agricultural lending,
Şekerbank increased its market share to 11%, excluding state-owned
banks. The Bank's total deposits in the agricultural segment grew 80%,
reaching about TL 265 million.
Şekerbank continues fulfilling its founding mission of financing
agriculture through reaching out currently about 350 thousand farmer
customers across Turkey..
MARKETING ACTIVITIES
In conjunction with the campaigns conducted under the “Family Farming
Banking” project, which was launched in 2014, the Bank introduced in
2015 year a wide range of products designed to facilitate land parcel
merging, support rural development, increase production efficiency,
reduce costs and mediate joint actions by making collective purchase of
agricultural inputs.
Within the scope of "Family Farming Banking", Şekerbank reached 20
thousand new, and in total 60 thousand farmer families, providing over
TL 1.6 billion finance.
As part of the Bank’s Anatolian tours, which target the agricultural sector
and have been conducted every year since 2008 till today, Şekerbank
representatives have visited 8,900 villages and contacted 266 thousand
farmers. Şekerbank’s branch and regional staff visited farmers at their
farms and local cafeterias to determine their needs onsite.
29
INTRODUCTION
Continuing to provide support to
producers and rural development,
Şekerbank participated in more
than 50 agricultural fairs and local
festivals across Turkey in 2015.
The Bank renewed the visuals of the “Hasat Kart (Harvest Card),” a
product that enables farmers to make purchases for their agricultural
business such as fuel, fertilizer, seeds, seedlings, feed and pesticides and
to meet their cash needs 24/7. About 100 thousand of the renewed cards
were delivered to customers.
Continuing to provide support to producers and rural development as
in prior years in 2015, the Bank participated in more than 50 agricultural
fairs and local festivals across Turkey.
Şekerbank supported the “Program for Reinforcement of Women's
Entrepreneurship in Agriculture” launched by the Ministry of Food,
Agriculture and Livestock. Under this employment and certificateoriented program, 10-days (70 hours) of practical entrepreneurship
training was administered to 407 women farmers in eight provinces in
cooperation with KOSGEB (Small and Medium Enterprises Development
Organization) and İŞKUR (Turkish Employment Agency). Following the
training, rural development focused projects have been prepared by
the participants, with the assistance of consultants; and presented to a
jury in each city. At the evaluations made in Balıkesir, Çankırı, Gaziantep,
Kırklareli, Konya, Malatya, Muğla and Zonguldak, the city winners were
selected. The awards ceremony was held in Istanbul on October 15, the
International Women Farmers Day, where the eight city winners came
together with Food, Agriculture and Livestock Ministry officials and
Şekerbank managers. At the ceremony, the city winners received various
prizes and the best project was awarded with TL 30 thousand. Financial
support of TL 15 thousand was provided to the project as the Jury's
Special Award.
PRODUCT AND SERVICE PACKAGES
Şekerbank provided over TL 350 million financing support to nearly
15,000 producers at convenient terms and favorable interest rates under
the “Bereketli Hasat Kampanyası (Fruitful Harvest Campaign).”
In order to help increasing production and productivity, improve product
quality and facilitate the delivery of farmers’ products to international
markets, the Bank conducted a loan campaign in commemoration the
Farmers Day on 14th of May. Under the campaign, over TL 55 million in
funding support was extended to more than 2 thousand farmers to
finance their agricultural needs at favorable interest rates and payment
terms.
Şekerbank continued to provide its broad based local credit product and
highly supportive financing tool for small farmers: the “Hasat (Harvest)
Card.” This innovative credit card features advantages, increasing
farmers’ bargaining power and decreasing agricultural production
expenses by costs through agreements made with suppliers on their
behalf.
Along with offering deposit products, Şekerbank aims to increase
profitability of agriculture and production by increasing savings and risk
awareness among farmers with help of the Bank’s insurance products.
Life insurance and TARSIM agriculture insurance especially stand out as
popular products.
The one and only private bank operating in Turkey nowadays whose
founding mission is to promote agriculture, Şekerbank plans to continue
providing significant support to the agricultural sector, which plays a key
role in the country’s economy, and developing production, services and
projects which enhance agricultural production.
30
RETAIL
BANKING
Şekerbank recorded
18% growth in savings
account deposits, nearly
double the sector growth
rate.
The number of pension payment clients of the
Bank increased 200% to 50 thousand in 2015,
up from 16 thousand a year earlier.
In 2015, Şekerbank continued working on diversification of its services by
developing new products and tailoring the existing product portfolio to
customers’ specific needs and expectations.
GROWTH BY NUMBERS
During the last year, EKOkredi and urban transformation loans were the
Bank’s special focused areas in the retail lending. The Bank’s total retail
lending portfolio reached to TL 1.5 billion, while EKOkredi loans grew 146%
and urban transformation loans grew 203% compared to the previous
year.
While the sector posted 9.72% annual growth in savings account deposits
year, Şekerbank recorded robust retail deposits growth of 18% in 2015.
The total deposits reached TL 9.4 billion, while term deposits grew 16% and
demand deposits grew 8.33%. The Bank’s retail customer base expanded
11% reaching 1.5 million customers, while automatic payment customers
base grew 29% reaching 42 thousand customers.
The number of pension’s clients of the Bank increased from 16 thousand
to 50 thousand within one year, providing 200% growth in 2015, which is a
successful result of the Bank in approaching pension customers.
RETAIL LOANS
Till today TL 352 million resources have been provided to more than
71 thousand retail customers, who were introduced with the energy
efficiency through EKOkredi. The finance resources in the amount of
TL 300 million provided under the EKOkredi insulation help to insulate
more than 109 thousand houses.
Within the scope of the EKOkredi, Şekerbank cooperated with four
companies, pioneers in their sectors, and initiated an insulation campaign.
Managers of about 1,500 apartments and condominimums participated to
the meetings held in Ankara, Istanbul, İzmir, Bursa and Eskişehir.
Regarding urban transformation loans, the Bank continued to work with
the sector’s most reputable and leading companies. Thanks to agreements
signed with different parties in 2015, the collaborations in this segment
were strengthened.
As part of the cooperation with PTT (General Directorate of Posts), upon
the completion of the infrastructure system improvements at about 1,000
PTT service points, online loan applications from SGK (Social Security
Institution) retirees and the Post Office staff started to be received by the
Bank.
After bolstering partnerships with real estate agencies and auto dealers,
the Bank held special campaigns targeting these segments and featuring
advantageous rates, terms and conditions. As a result, while the sector
contracted 9.20% in automobile loans in 2015, Şekerbank achieved more
than 38% growth in this segment in the same period.
CREDIT CARDS
In 2015, taking into consideration the card holders’ needs, Şekerbank
continued holding Bonus campaigns as extra gift for the various sectors
within the timelines tailored for these sectors. As a result of these efforts,
the Bank accelerated the credit card application process, shortened the
delivery time of cards to customers and provided customers with the
option to collect their cards from the branch. With “SMS Password,” an
31
INTRODUCTION
Şekerbank achieved 146% growth
in EKOkredi loans and 203%
growth in urban renewal loans.
innovative application, Şekerbank customers can receive passwords upon
receipt of their cards by sending an SMS from their mobile phones and
start using their cards immediately.
The “E-statement Bonus” campaign, launched both to contribute to
environmental protection and enable online access to credit card
account statements from anywhere, has been continued during the year;
customers who opted to receive e-statements from the Bank won extra
Bonus points.
In addition to cash and installment cash loans provided to meet the needs
of cardholders, the Bank introduced a new service called Cash via SMS,
which enables getting cash loan immediately via mobile phone. Moreover,
customers were presented with the opportunity to obtain installment cash
loans 24/7 via the Call Center.
Besides branches, application for Şeker Card may be submitted via
alternative distribution channels.
While the Bank’s co-branded credit card agreements continued in 2015,
Şekerbank signed an agreement with S.S. Tüm Tüketim Kooperatifleri
Merkez Birliği (Merkez Tükobirlik), the umbrella organization of consumer
cooperatives, and provided support both to cooperative members and to
tradesmen in the Kocaeli region under this agreement.
ATM CARDS
The Bank launched the “Hazır Debit (Ready Debit)” card product under
which the ATM cards are issued and delivered to customers while they
are still in a Bank branch. This product is especially designed to serve
customers of the bulk accounts opened for salary payment customers,
who opened demand accounts at branches and loan customers by
providing instant access to their accounts. To provide customers with
a more secure shopping opportunity, the Bank printed chip ATM cards.
With the inclusion of the Şekerbank ATM card in the BKM (Interbank Card
Center) Express application, customers now have the opportunity to use a
secure channel and benefit from promotional campaigns.
DEPOSIT PRODUCTS
In 2015, Şekerbank launched the “Gece Gündüz Hesabı (Night and Day
Account),” which offers advantageous interest rates in addition to its
overnight deposits feature allows deposits and withdrawals to meet daily
cash needs. While providing daily cash flow, the Night and Day Account
also contributes to the accumulation of small savings amounts.
Taking into account investor trends and risk awareness, Şekerbank
expanded its product range with the “Birçok Para Birimli Mevduat
(Multiple-Currency Deposit).” This product allows customers to benefit
from fluctuations in the foreign exchange market and earn interest; it also
offers the possibility to switch between currencies instantaneously.
With the “Memleketin Seni Bekliyor Paketi (Your Country Is Waiting for You
Package)” launched in 2015, Şekerbank offered exclusive banking services
to customers residing abroad. As of 2015 year-end the Bank’s funds from
about 12 thousand customers, residing overseas customers, reached TL 1.5
billion.
SERVICE PACKAGES
Launched in February 2015, “İkinci Bahar Emekli Paketi (Second Spring
Retirement Package)” provides a number of advantageous features
and benefits. These include account management fee exemption; free
of charge money transfer/EFT transactions via Internet Banking; free
of charge withdrawals of SGK (Social Security Institution) retirement
payments from all branches and ATMs; and withdrawals of the SGK
retirement payments from ATMs of all other banks’ within the daily limits.
32
DISTRIBUTION CHANNELS
MANAGEMENT
Şekerbank became
the first bank selling
Findeks Risk Report via
Call Center.
In 2015, Şekerbank provided the systems
infrastructure that allows individual Internet
Banking customers to access e-Government
Gateway services.
INTERNET/MOBILE BANKING
Over the last year, the Bank added new features to the Internet Banking
and Mobile Branch applications in order to provide customers with
24/7, uninterrupted, fast and secure access to banking operations. First
time users and customers who forgot their passwords were enabled
to complete their password and user code generation processes in the
branches.
In order to provide a more user-friendly environment, Şekerbank added
new options to security applications. The Bank enabled customers using
Internet and mobile banking to perform transactions up to the predetermined total daily amount and/or total daily number of transactions
without additional security measures.
Thanks to upgrades and improvements in 2015, Şekerbank provided the
systems infrastructure that allows Retail Internet Banking customers
to access e-Government Gateway services. Customers who login to
Internet Banking can now have free access to e-Government Gateway
services without an additional password requirement.
Given that the banking sector sees the pace of adapting new technology
developments accelerate every day, Şekerbank refreshed its Internet
Banking design to meet evolving customer expectations and to better
reflect the Bank’s professional image. As a result, the Bank has an
innovative website in terms of both functionality and design.
During Internet Banking’s renewal process, Şekerbank aimed to establish
a structure that provides functional convenience, follows technological
trends and does not force customers to change their usage habits.
ATM
Şekerbank ATM network reached 572 locations; thus, customers gain
access to all core banking services, especially cash withdrawal, wherever
they need it.
During the year, the Bank improved the commission income through
providing an opportunity for the foreign cardholders to make cash
withdraws in Turkish lira from the Bank’s ATMs and see the withdrawn
amount in the equivalent to their country currency through Dynamic
Currency Conversion (DCC), to deposit cash without card and withdraw
foreign currency cash.
In order to benef,t from the tourism potential of the country and boost the
Bank's commission income, Şekerbank made new investments in tourist
regions as part of the DCC application. Under this effort, the Bank expanded
the ATM network, especially in the Mediterranean and Aegean regions.
With the “Hesaptan Cebe (From Account to Pocket)” service introduced
in 2015, the Bank provides customers with the convenience of sending
money to anyone, whether Şekerbank customer or not, via ATM, internet,
the mobile branch and telephone banking. In addition, all users have the
opportunity to withdraw sent money from ATMs without a card.
33
INTRODUCTION
In 2015, Şekerbank’s pension
customers were provided the
opportunity to directly connect
to a customer representative and
make transactions.
CALL CENTER
MOBILE SALES
In 2015, Şekerbank Call Center continued to deliver fast, high quality
and effective services to customers 24/7, while continually updating its
systems and infrastructure.
The Bank completed the Mobile Sales team structuring at Şekerbank's
regional offices in 2015.
The Bank revamped the interactive voice response system to create
a simple, clear and user-friendly Call Center. Customers have the
opportunity to set their credit card, Internet and mobile banking
passwords without connecting to a customer representative. In
November, the Bank commissioned the customer recognition feature,
which directs customers and connects to the related customer
representative.
In 2015, Şekerbank provided existing customers with the option to
transfer their pension payments via the Call Center. Besides the upgrade
of services delivered through the “Emekli Destek Hattı (Pensioner
Support Line)” launched in 2014, the Bank’s pension customers were
also provided with the opportunity to directly connect to a customer
representative and make transactions via the Call Center on 444 78 78.
In addition to product promotion, application and activation calls, the Call
Center also made sale calls in 2015. Şekerbank became the first bank to
sell the Findeks Risk Report via the Call Center channel.
Within the scope of "Family Farming Banking" promotion and marketing
activities, Mobil Sales teams visited more than 1.000 villages in 2015.
Performing sales activities in all segments of retail banking, Mobile
Sales teams carry out introduction and marketing activities of a number
of products; these include, loan and credit card products for the
SME, agriculture and micro business segments, in particular. Mobile
Sales teams made 40 thousand product sales to the Bank’s targeted
customers in 2015.
Under the PTT loans project, Mobile Sales visited a total of 930 Post
Office branches across Turkey. A member of the Mobile Sales team in
each region was assigned as a PTT sales representative responsible for
regular communication with PTT branches. By the end of the first month
of the project realization, the market share reached 0.6%.
By second half 2015, credit card sales began to take place via a new
tablet PC system. As of year’s end, the Bank completed work related
to the disbursement of general-purpose loan facilities via tablet PCs,
especially for Memur-Sen members and salary customers as the primary
target customer groups and in December the pilot staged has been
started.
34
CASH
MANAGEMENT
With the renewed infrastructure of the Direct
Debiting System, 66% increase in the number of
main firms, and 54% increase in the number of
dealers was achieved compared to the previous
year.
By end of 2014, Şekerbank had restructured the Cash Management
Department in line with the Bank’s retail banking strategies.
In 2015, the Bank continued to attract the cash flows of its customers
through successful products designed to meet their payment and
collection requirements and to ease operation processes of the financial
transactions..
Şekerbank, using its strong technological infrastructure, continued
developing intelligent solutions for payment and collection systems
in line with customer requirements and tailored to their way of doing
business. These solutions provide customers with time and labor savings
as well as reduced operational errors and costs.
Within the structure of Cash Management, synergy is achieved between
all segments of the Bank as firms are provided with banking services and
financial solutions for their commercial relations with their suppliers and
dealers.
Şekerbank’s Cash
Management Solution,
developed with the latest
technologies in electronic
payment systems, allows
companies to perform
banking transactions
faster, more easily and with
greater accuracy.
COLLECTION SOLUTIONS
With the revamped infrastructure of the Direct Debit System, the
Bank increased in 2015 the number of parent companies and dealers
compared to the previous year by 66% and 54%, respectively.
In comparison with the previous year, the Bank integrated 20% more
institutions into the Bank’s cash management system, thus, the number
of automatic payment orders increased by 45%.
PAYMENT SOLUTIONS
Şekerbank’s Cash Management Solution, developed by the Bank with
the latest technology in electronic payment systems, allows customers
to perform banking transactions faster, more easily and with greater
accuracy.
With the “Bulk Payment” product, the Bank realized bulk internal and
interbank (EFT) money transfers of more than 100 companies in 2015.
Şekerbank offered QR Coded Checks to its customers for the first time in
Turkey. Embracing the principle that all checks in the market should be
QR coded, the Bank is a pioneer in the sector in terms of number of such
checks issued to customers.
35
INTRODUCTION
CORPORATE AND
COMMERCIAL BANKING
In 2015, Şekerbank’s
Corporate and Commercial
cash loan portfolio climbed
to TL 7 billion 866 million,
up 15%.
Şekerbank believes its greatest value lies
in its commercial customers which the
Bank has served for three generations.
In 2015 year Şekerbank, using its commercial banking expertise and
differentiating the financial needs of the Turkish businessmen, producers
and tradesmen, met it with the cost-effective and quality products
and services in time, aimed to provide the highest level of customer
satisfaction while maintaining its sound, reliable, producer-friendly bank
image.
LOANS POLICY
The Bank's lending strategy is based on achieving sustainable loan
growth, creating a balanced and secure loan portfolio, and financing
investments that promote production, create new jobs, provide foreign
currency income and increase energy efficiency.
Şekerbank gives a priority on maintaining its market share in the
construction and contracting sectors, which the Bank has been
traditionally active in, and financing urban transformation projects in
2016. The Bank plans to continue providing funding to projects that will
increase the quality and energy efficiency of the country’s housing stock
in 2016.
In the coming years, Şekerbank plans to continue prioritizing the funding
of investments related to energy efficiency and the development
of sustainable energy resources under the umbrella of EKOkredi.
Collaborations with governmental and non-governmental domestic
and foreign institutions, such as İZODER, TuREEFF and EBRD, will be
strengthened and improved.
By giving priority to SME-exporters, Şekerbank develops new products
and services, such as cost-effective financing opportunities and
informational/regulatory support, to support operations of customers
dealing with foreign markets.
In 2015, Şekerbank’s Corporate and Commercial cash loan portfolio
reached TL 7,866 million, growing by 15%, which is in line with the
Bank’s targets. During the year, the Bank disbursed loans for 1,200 new
customers. In 2016 it is aimed at balanced and healthy loan growth in
line with country’s and global developments.
Playing a significant role in the growth story of Turkey’s major companies
due to its well-established expertise in commercial banking, Şekerbank
believes its greatest value lies in its commercial customers which the
Bank has served for three generations. In 2016, the Bank will continue
offering the high quality, comprehensive and cost-effective services
deserved by its customers.
36
FINANCIAL INSTITUTIONS
In 2015, Şekerbank
secured a one year
syndicated loan
facility of nearly
US$ 135 million.
Continuing to increase its market share in
Turkey’s foreign trade finance volume in
2015, Şekerbank signed the longest-termed
syndicated loan in Turkey.
In 2015, Şekerbank Financial Institutions continued to secure funding
sources from international capital markets. In line with its deep
experience and know-how in “Community Banking,” Şekerbank also
continued attracting the attention of EU and US development agencies
as well as the world’s major development banks. Şekerbank Financial
Institutions, while continuing efforts to diversify its service offerings
in the financing of foreign trade, made significant progressin 2015 in
forging new ties with the world's leading commercial banks as well as
improving existing relationships.
As a result of these efforts, Şekerbank secured a 5-year loan in the
amount of USD 75 million from the International Finance Corporation
(IFC) and a 9-year loan in the amount of USD 30 million from the Global
Climate Partnership Fund (GCPF). In addition, in 2015 Şekerbank signed
the syndicated loan agreement with the longest term ever available
in Turkey: the Bank secured about USD 115 million in funding in four
tranches from a consortium led by the Dutch Development Bank (FMO)
and the Korean Development Bank (KDB).
As a part of the Bank’s covered bond program, the issuance of the first
asset-backed security in Turkey which was initiated in 2011 to provide
support for SMEs, has been continued in 2015, in December 2015, the
European Investment Bank (EIB) invested TL 319.4 million in the issuance
under the said program to be used for SMEs’ financing the Bank’s total
outstanding asset-backed security issuance after this transaction reached
TL 760 million. To date, the Bank’ has completed nine covered bond (CB)
issues totaling TL 1 billion 458 million together with the redeemed ones.
The maturity of the securities issued ranged between one and five years.
Şekerbank also taps the international syndication market in order to
diversify its funding base with overseas sources. In 2015, the Bank secured
a one year syndicated loan facility of about US$ 135 million.
In 2015, Şekerbank continued increasing its market share in Turkey’s
foreign trade finance. The Bank achieved a high level of service quality
and increased diversification both in standard products, including money
transfers, check collection in foreign currency, documentary credits
and import/export finance and in specialized finance products such as
structured external finance, project finance and sovereign loans.
The resources provided to Şekerbank by commercial banks, the
International Finance Corporation (IFC) and the European Bank for
Reconstruction and Development (EBRD)in total amount of US$ 250
million were obtained under attractive conditions to extend financial
support to foreign trade companies in particular.
In recognition of the constant improvement of the quality of service the
Bank provides under its Foreign Transactions Operations Unit, similar
to the previous years in 2015 Şekerbank once again received prominent
“service quality” awards from its main account correspondent banks.
With a current funding base that includes foreign funding sources of US$
1 billion, Şekerbank aims to continue efforts in the coming period to obtain
long-term funding from development agencies, commercial banks and
other financial institutions.
37
INTRODUCTION
INFORMATION
TECHNOLOGIES
In 2015, the Bank
completed the “Teminat
Havuzu (Collateral
Pool)” project, which
automatically calculates
collaterals and links with
the associated lending
facility.
Şekerbank redesigned its website with its
infrastructure compatible with the latest
technological trends, besides its simple,
comprehensible design language and user
friendly approach.
Şekerbank Information Technology Management started in 2015 new
projects in various areas; the Department completed some of these
projects within the year, while others will be gradually implemented in
line with their completion plans. Under the “Customer Relations and
Campaign Management” project, Şekerbank completed developing
of management tools for campaigns provided through SMS, ATM and
Internet banking channels. In order to provide fast, high quality service
to retail customers, the Bank completed the Decision Support Systems
(DSS) project and launched a pilot application. In addition to the Tablet
PC project, which enables receiving of loan applications from tablet PCs,
the Bank finalized the works related to retail loan disbursements via PTT
branches.
Operational processes were shortened when applications for POS
started from branches. Şekerbank POS machines were enabled to
include transactions of contactless cards of other banks. The DCC
transaction option was launched for the customers to enable withdrawal
of money from ATMs via international cards. Şekerbank also refreshed
its website to have a systems infrastructure compatible with new
technological trends, with design that is simple and clear, and greater
ease of use.
The Bank completed the “Teminat Havuzu (Collateral Pool)” project,
which automatically calculates collaterals and links with the associated
lending facility. In addition, the Bank commissioned the “Müşteri
Olumsuzluk Bildiri Sistemi (MOBİS) (Worsening Customer Notification
System)” project, which allows taking early action in adverse situations.
Şekerbank closely monitors emerging technologies and deploys
those mature enough to be used in its critical banking systems and
IT infrastructure. Furthermore, during the year Şekerbank made
improvements to the core banking systems, databases, applications
servers, network, and e-mail and reporting systems.
Having adopted a world-class management methodology in compliance
with applicable legal and regulatory requirements, Şekerbank
Information Technology Management continued its efforts to operate in
line with ISO 9001, ISO 27000, ISO 10002 and ISO 20000 standards.
38
HUMAN
RESOURCES
Şekerbank employees
have an average seniority
of seven years and an
average age of 35. The
gender distribution of
personnel is equal: 50%
female and 50% male.
In line with the Bank’s growth strategy,
Şekerbank is committed to filling
managerial positions via internal
recruitment.
Şekerbank advanced its foundation rural development aim with
sustainable development perspective and nowadays sets its targets
with the human resources, totaling approximately 4,100 employees who
are competent to behave locally, and may quickly respond to customer
needs, and provides services in every part of Turkey through its 301
branches, 11 Regional Offices and 11 Loan Allocation Regional Offices
located in 71 provinces and approximately 100 off-center districts in total.
Şekerbank employees have an average seniority of 7 years and an
average age of 35. The gender distribution of personnel is equal: 50%
female and 50% male. Some 89% of employees have associate and
higher educational degrees.
RECRUITMENT
In 2015, the Bank’s 396 newly recruited staff was made up of 56% new
graduates and 44% experienced candidates. About 79% of new recruits
staffed branch positions, out of which 53% were hired for the sales
positions.
Through the Assistant Internal Auditor Program, the Bank employed 21
assistant auditors in the Internal Audit Department.
Held for the first time in 2015, the “Young Producers” program included
the participation of 240 third- and fourth-year students from the
agricultural faculties of eight universities. The project competitions
have been held at each university within the scope of the program to
encourage students to use their creativity as well as their professional
knowledge. Upon graduation, 7 students, whose projects were awarded,
started to work as customer service representatives in the Bank's
agriculture business line.
To enhance communication, share issues on the spot, contribute to
business objectives while ensuring internal customer satisfaction and
increasing the loyalty of personnel 198 branches have been visited.
During the visits to departments, regions and branches 1,568 people
have been met.
CAREER OPPORTUNITIES
In accordance with the Bank’s human resources policy, Şekerbank
prefers to recruit among existing staff in order to provide equal
opportunities to employees. Accordingly, the vacant positions are
shared with personnel via the “Internal Career Opportunities” bulletin.
In 2015, there were 642 transfers. Pursuant to the Bank’s sales oriented
approach, 106 employees from the Operations Department nominated
to the Sales Pool in line with the “Internal Career Opportunities in the
Branch” announcement have been transferred to the Sales Department.
Moreover, 296 employees of the Bank were promoted one level up after
performance based assessments.
39
INTRODUCTION
86% of Şekerbank’s need for managers was met
with the Manager Pool Program, participants of
which are committed to the Bank’s the corporate
culture and strategic targets and have managerial
skills as well as high leadership potential.
TALENT MANAGEMENT
REMUNERATION
In support of the Bank’s growth strategy, Şekerbank aims to cultivate
the managers of the future from existing staff. To this end, the Bank
continues to implement Manager Pool Program training for the career
development of personnel. Career progress plans were made for all
mid-level managers in the one-to-one career meetings held as part of
the Manager Pool assessment. In 2015, 70 employees joined the Manager
Pool.
The Remuneration Committee is responsible for monitoring practices
related to compensation, ensuring compliance with the Bank’s ethical
values, budget and strategic targets. The Committee advises on the
principles and criteria to be used by the Board of Directors in regard to
the remuneration of the Board of Directors members and managers
with executive responsibilities, considering the long term targets of the
corporation and its achievements. Internal balances, market conditions,
strategic targets, individual performance and assumed responsibilities
are considered by setting wages in Şekerbank.
As a result, Şekerbank appointed 49 Branch Managers and 86% of the
Bank’s need for managers was met with the Manager Pool Program.
Program participants include those employees who are identified as
embodying the corporate culture and committed to meet strategic
targets, who have managerial skills as well as high leadership potential.
Fixed and performance-based payments to Şekerbank employees
are made within the guidelines and principles stated in the Human
Resources Policy and Premium Regulation of the Bank.
Under “Career Path,” the Bank's employee selection and training
program, 82 teller employees continue to receive intensive training in
support of their promotion to the sales team, via on-the-job trainings,
e-learning and in-the field sales activities.
Management of the business lines and branches’ targets and assessment
of sales performance are carried out with the “Şeker Kazan (Score
Card)” system. Şekerbank uses the Competency Based Performance
Assessment System for all personnel.
In 2015, the Bank launched the “Şekerbank Başarı Ölçer Performans
Sistemi (Şekerbank Success Measurement Performance System),” which
is designed for headquarters personnel, including regional loan allocation
and branch securities market employees. Under the system, a total of
1,053 Performance Ratings (ScoreCards) were prepared, from Assistant
General Managers to the lowest ranks, and employee goals were set in
line with the Bank's targets. Evaluation of the job performance of head
office personnel will also be based on concrete, numerical targets.
The Bank makes annual performance bonuses payments in gross to
employees by taking into consideration their previous year performance
and the Bank’s long term performance.
40
HUMAN RESOURCES
Some 79.95% of the Bank’s
employees attended at
least one training class in
2015, receiving an average
of 3.8 training days per
person.
Including the executives from the Headquarters’
units, 654 staff members in total attended
management, personal development and
visionary training programs.
73 Operations Department employees nominated to the Sales
Department received sales preparation trainings for three months.
The training of this group was followed up and reinforced every week
through distant sales videos, e-trainings, group training and question
sets. The group’s training was further consolidated in a one-day sales
workshop.
TRAINING
A total of 654 employees, including managerial staff, from the Bank’s
headquarters participated in training programs for management,
personal development and visionary leadership.
Şekerbank provides training programs to improve the job performance,
ensure career advancement and personal development of all personnel,
in line with the Bank’s strategies and by using progressive, innovative and
systematic methods.
Both experienced and inexperienced newcomers to the Bank as well as
employees, who are transfered from one job to another or promoted
within the Bank are all required to attend Şekerbank Career School
programs. In particular, having a Career School certification is a key
promotion criterion for employees. The Bank’s Career School has issued
2,403 certificates for promotion purposes since 2011, including 496
certificates issued in 2015.
In 2015, 70 new branch managers completed training at the Leadership
School, an important certification program of Şekerbank’s Career School.
Spread over a period of eight months, the training program included
8-day technical and managerial in-class trainings, 180-degree leadership
profile assessments and consultant feedback.
Some 79.95% of the Bank’s employees attended at least one training
class in 2015, which makes an average of 3.8 training days per person.
In October, the Bank’s training facilities have been relocated to the new
headquarters building.
Besides in-class trainings, the Bank’s employees completed an average
of three e-learning activities per person. In addition to e-learning as an
alternative method of education, regular trainings continued throughout
the year via a variety of other channels, including video tutorials, question
sets, online competitions and "Message of the Day" questions. During the
year, the Bank launched the E-mobile application, which provides 24/7
access to training materials, such as e-learning, video tutorials, book
summaries and audio learning materials from computers and mobile
devices. This innovative training application reached out 800 active users
in 2015.
In 2016, Şekerbank’s training strategies will include mentoring in Career
Schools, live classroom applications via webinar for various trainings
aimed at all Bank staff, and “Expert Talks” for headquarters personnel’s
voluntary participation.
41
INTRODUCTION
SUBSIDIARIES OF
ŞEKERBANK
ŞEKER YATIRIM MENKUL DEĞERLER A.Ş. (ŞEKER SECURITIES)
ŞEKERBANK (KIBRIS) LTD.
Şeker Securities was founded with capital of TL 125,000 in accordance with the
Capital Markets Board provisions in 1996. Registered with the Trade Registry
on December 24, 1996, the company commenced operations in early 1997. The
capital is TL 30 million. The company has received all authorization documents
given by the Capital Markets Board for operations in the BIST and TurkDEX.
Founded as a Şekerbank affiliate in Lefkoşa in 1996, Şekerbank (Kıbrıs) Ltd.
operates today as a private capital local commercial bank with 6 branches
located in Lefkoşa Center, Gazimagusa, Güzelyurt, Girne, Iskele and Akdoğan.
Headquartered in İstanbul, Şeker Securities has two branches, located in
Ankara and İzmir. Through an agency agreement with Şekerbank, the company
also serves customers via the Bank’s 301 branches across the country. In
addition to 60 active agencies with session rooms across Turkey, Şeker
Securities customers can open investment accounts and conduct transactions
at all Şekerbank branches.
ŞEKER FAKTORING A.Ş. (ŞEKER FACTORING)
Founded in 2000 to provide domestic and foreign factoring services, Şeker
Factoring’s headquarters is located in İstanbul. The company has 10 branches
in Ankara, İzmir, Bursa, Denizli, Kayseri, Gaziantep, Antalya, Samsun, İkitelli and
Dudullu.
ŞEKER FINANSAL KIRALAMA A.Ş. (ŞEKER LEASING)
Founded in 1997 to conduct financial leasing activities, Şeker Leasing has a
broad customer portfolio composed of numerous companies operating in
a wide range of sectors. Şeker Leasing’s headquarters is located in İstanbul
and the Company has three branches in Ankara, İzmir and Gaziantep. Şeker
Leasing’s shares have been traded on the BIST since July 21, 2004.
ŞEKERBANK INTERNATIONAL BANKING UNIT LTD.
Founded in 1994 in Lefkoşa, the Turkish Republic of Northern Cyprus, Şekerbank
Offshore Ltd. was renamed as Şekerbank International Banking Unit Ltd. in
2009. The company operates in the area of offshore banking.
ŞEKER MORTGAGE FINANSMAN A.Ş. (ŞEKER FINANCE)
İstanbul Mortgage Finansman A.Ş. was founded in 2008 to provide mortgage
financing and extend housing loans appropriate for securitization. The
company became a Şekerbank affiliate in 2010 and was renamed as Şeker
Mortgage Finansman A.Ş.
ZAHLUNGSDIENSTE GMBH DER ŞEKERBANK T.A.Ş.
Operating in Cologne as a representative office between 1973 and 1998 and
a financial services branch from 1998 to 2011, Şekerbank T.A.Ş. Köln has been
conducting its business as Zahlungsdienste GmbH der Şekerbank T.A.Ş.
since June 2011. The company was founded as a 100% Şekerbank affiliate in
accordance with the German law and only provides money transfer services
(remittance transactions). 42
INDEPENDENT AUDIT
COMPANY
Neither Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik
Anonim Şirketi (a member firm of KPMG International), which carries out
the independent audit of Şekerbank, nor the audit employees and other
personnel employed by the company, render consultancy services to the
Bank with or without charge. Independent audit companies are subject
to rotation at certain intervals pursuant to the regulations of the Banking
Regulation and Supervision Agency and Turkish Commercial Code.
Accordingly, based on the decision of the Board of Directors it was
decided to procure an independent audit service for the Bank from Akis
Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi
(a member firm of KPMG International) for 2015 financial period, further
on it has been approved in the Ordinary General Assembly on March 19,
2015.
INTRODUCTION
43
INDEPENDENT AUDIT COMPANY’S
COMPLIANCE OPINION
INDEPENDENT AUDIT COMPANY’S COMPLIANCE OPINION ON THE ANNUAL REPORT
To the Shareholders of Şekerbank T.A.Ş.:
We have audited the accuracy and the consistency of the financial information in the annual report of Şekerbank T.A.Ş. (“the Bank”) with the audited
financial statements as of 31 December 2015. Our responsibility as an independent audit company is to state our opinions on the annual report audited
regarding the consistency of the financial data in the annual report in comparison to the Bank’s financial statements that constitute the subject of the
independent audit report dated 12th of February 2016.
Our assessment was made in conformity; with the procedures and principles that entered into force as per the Banking Law No. 5411 regarding
the preparation and issuing of the annual report; with the Independent Audit Standards that are part of the Turkish Audit Standards published by
the Public Oversight Accounting and Auditing Standards (“KGK”); with the regulations regarding the 397th Article of the Turkish Code of Commerce
No. 6102. Those regulations require that we plan and perform the audit to obtain reasonable assurance regarding whether the consistency of financial
information represented in the annual report with the audited financial statements and explanatory notes is free of material misstatement. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In our opinion, the financial information represented in the accompanying annual report represents fairly, in all material respects, the information
regarding the financial position of Şekerbank T.A.Ş as of 31 December 2015 in accordance with the effective regulations described in the article 40
of the Banking Law No. 5411 and includes the Independent Auditors’ Report issued by us and the Summary of the Board of Directors’ Report and is
consistent with the audited financial statements and explanatory notes.
Other Liabilities Arising From the Legislation
As per the 3rd paragraph of the 402nd Article of the Turkish Code of Commerce; we did not encounter any significant issues that must be reported
about Şekerbank T.A.Ş’s potential inability to continue its activities in the foreseeable future within the framework of BDS 570 “Business Continuity”.
Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi
A member of KPMG International Cooperative
Orhan Akova, SMMM
Partner, Chief Auditor
February 26, 2016
Istanbul, Türkiye
44
BOARD OF DIRECTORS
Dr. Hasan Basri GÖKTAN
Chairman of the Board of Directors, Executive Board Member
Dr. Hasan Basri Göktan holds a double undergraduate degree in Engineering
and Economics, as well as a PhD in Economics. He began his professional
career in 1973 at Türkiye Şeker Fabrikaları A.Ş. and served as the Chairman
of Board of Directors and General Manager of Sugar Beet Cooperatives
(Pankobirlik) from 1983 to 1993. Dr. Göktan concurrently served as General
Manager of Sugar Beet Cooperatives and Chairman of the Board of Directors
of Şekerbank T.A.Ş. and Konya Şeker Fabrikası A.Ş. from 1988 until 1993. Under
his leadership, Konya Şeker Fabrikası A.Ş. was been successfully privatized
- a first in the Turkish sugar industry. Dr. Göktan also briefly served as the
Chairman of the Board of Directors of Yüksel İnşaat A.Ş. alongside his role
as General Manager of Şekerbank T.A.Ş. and the member of the Board of
Directors of Türkiye Şeker Fabrikaları A.Ş. between 1993 and 2002. Dr. Göktan
also served as General Manager and Chairman of the Board of Directors of
Şekerbank T.A.Ş. from 2002 until 2006. Subsequently, he served as General
Manager of Şekerbank T.A.Ş. from 2006 to 2007. On February 1, 2008, Dr.
Göktan assumed the position of Chairman of the Boards of Directors of
Şekerbank T.A.Ş. and its financial subsidiaries; in addition, he currently serves
as the Executive Board of Directors Member of Şekerbank T.A.Ş.
Halit H. YILDIZ(*)
General Manager, Board Member
He is a graduate of the Faculty of Business Administration at Marmara
University. Mr. Yıldız has an MBA and MS degree in Management and Finance
from İstanbul University. Mr. Yıldız held managerial positions at various private
banks between 1983 and 2008. He served as an Executive Vice President in
Şekerbank between 2009 and 2014. In April 2014 he has been appointed as
General Manager and Board Member at Şekerbank T.A.Ş.
Viktor ROMANYUK
Vice Chairman of the Board of Directors, Independent Board Member
Viktor Romanyuk graduated from Kazakh National University named after
al-Farabi with degree in International Economic Relations specializing in
banking studies, subsequently completing his master’s degree in Civil Law
(LL.M) and post-graduate studies in Public Administration. In 2007, Viktor
Romanyuk acquired Ph.D. degree in Economics. From 1999 to 2010, Mr.
Romanyuk served various managing positions in international companies and
banks. In February 2010, he joined BTA Bank JSC and as of December 2011, has
been taking position of the Managing Director of the Bank. Since 2012, he is
member of the Management Board of BTA Bank JSC and chairs the Boards
of Directors of BTA Bank CJSC (Belarus), BTA Bank CJSC (Armenia), SK Leasing
JSC (Kazakhstan). During his work in BTA Bank JSC, he was also elected as
a member of the Boards of Directors of BTA Bank JSC (Georgia), BTA Kazan
OJSC (Russian Federation), and member of the Supervisory board of the First
Credit Bureau. He also performed his duties as London-Almaty Insurance
Company JSC Board of Directors member. He was appointed as the Vice
Chairman of the Board of Directors at Şekerbank T.A.Ş. in March 2013.
Erdal BATMAZ
Mr. Erdal Batmaz graduated from Ankara University, Faculty of Political
Sciences, Department of Economics. Subsequently, he served as Specialist
and Consultant in the Prime Minister’s Office. Mr. Batmaz also worked at the
State Industry and Laborer Investment Bank (DESIYAB) on a Konrad Adenauer
Foundation scholarship. He held various administrative positions and later
served as Assistant General Manager and Vice Chairman of the Board of
Directors at Emlak Bank. In addition, Mr. Batmaz served as member of the
Board of Directors in a number of insurance companies and tourism firms.
From 1997 to 2003, he was a member of the Board of Directors at the Capital
Markets Board for two terms. Mr. Batmaz has been serving as a member of
Şekerbank’s Board of Directors since 2003.
Emin ERDEM
Mr. Emin Erdem began his professional career as an internal auditor at Ziraat
Bank, Turkey, and later on he has been working in the international relations
department of the Bank. Later he has been appointed as a Representative
of Ziraat Bank in Germany and the Netherlands. Mr. Erdem also served as
a Country Manager of Ziraat Bank London Branch in the UK. Afterwards he
was appointed as an Executive Vice President and Member of the Board of
Directors at Ziraat Bank, at the same time, Mr. Erdem served as a Chairman
of the Board of Directors of Deutsche-Türkische Bank in Germany. He is a
member of Şekerbank’s Board of Directors since 2002.
Halit Yıldız resigned from his position as General Manager and was appointed as
Member of the Board of Directors as of February 22, 2016.
(*)
45
Halil CAN YEŞİLADA
Board Member
Mr. H. Can Yeşilada is a graduate of Middle East Technical University,
Department of Business Administration. He has served as Finance Director
at Santral Dikiş A.Ş., Executive Vice President at Manufacturers Hanover Trust
(NY) Bank, Chairman of the Board of Directors and General Manager at Türk
Eximbank, Deputy President at the Privatization Administration of Turkey and
Chairman of the Board of Directors at Petrol Ofisi. In addition, Mr. Yeşilada has
held the positions of Executive Vice President, CEO and Member of the Board
of Directors at various public and private banks and industrial companies. He
has been serving as a member of the Board of Directors of Şekerbank since
2006.
Üzeyir BAYSAL
Independent Board Member
A graduate of Ankara University, Faculty of Political Science Department of
Economy-Finance. He began his career in 1985 and continued his career as
Banking Regulation and Supervision Agency Banking Certified Chief Auditor.
He has been an Independent Board Member of Şeker Finansal Kiralama
A.Ş. between April 2012 and March 2013 and he has been appointed as an
Independent Board Member of Şekerbank T.A.Ş. in 2013.
Khosrow Kashani ZAMANI
Board Member
Mr. Khosrow K. Zamani is the former Director of the International Finance
Corporation (IFC) for the Southern Europe and Central Asia region. He is a
graduate of Case Institute of Technology (USA), where he received BSc and
MSc degrees in Engineering and Warwick University (UK), where he earned
an MBA. Mr. Zamani continued his postgraduate studies at Cambridge
University (UK) in the Department of Industrial Management. In 1997, he
graduated from the Harvard Business School Executive Development
Program. Mr. Zamani has held various senior level positions at the IFC.
He currently serves as Chairman of the Board of Directors at Anglo Asian
Mining Plc (UK), member of the Board of Directors and member of the
Compensation Committee of Kommerciala Banka in Serbia and Independent
Director at Borusan Makina in Turkey. Mr. Zamani is the member of the Board
of Directors of Şekerbank T.A.Ş. since 2007.
Nariman ZHARKINBAYEV
Mr. Nariman Zharkinbayev graduated from T. Ryskulov Kazakh Economics
University, with degrees in International Economy and International
Relations. From 2002 to 2008, he has worked in various positions and
companies in Kazakhstan and abroad including BTA Bank JSC, Alliance Bank
JSC, GarantiBank International N.V., since May 2008 he joined BTA Bank JSC
as Head of the Financial Institutions Department. In November 2012, Mr.
Zharkinbayev was appointed as the Member of the Board of Directors at
Şekerbank T.A.Ş.
Murat ISHMUKHAMEDOV
Murat Ishmukhamedov is a graduate of Kazakhstan State Academy of
Management, Department of Finance and Credit. From 1992 to 2007 he
worked in various banks in Kazakhstan. Between 2007 and 2012 he served as
an Executive Vice President at Şekerbank T.A.Ş. and he has worked as Finance
Manager in TRG Petrol Ticaret A.Ş. from October 2013 till March 2015. He was
appointed as the Member of the Board of Directors at Şekerbank T.A.Ş. in
March 2014.
Daniyar AMANOV
Board Member
Daniyar Amanov is a graduate of S.Ordjonikidze State University, Faculty
of Bank Management. From 1999 to 2012 he worked in various banks and
companies, from 2014 till 2015 he was the Advisor to the Chairman of the
BTA Bank JSC. In January 2013 he joined Standard Insurance JSC as a Board
member and currently serves as a Chairman of the Board of Directors. He
was appointed as the Member of the Board of Directors at Şekerbank T.A.Ş. in
March 2014.
46
SENIOR MANAGEMENT
Halit H. YILDIZ(*)
General Manager and Member of the Board of Directors
Please refer to the Board of Directors section.
Orhan KARAKAŞ
Executive Vice President - Corporate and Commercial Banking Marketing
Born in 1960, Mr. Orhan Karakaş is a graduate of Marmara University,
Department of Economics. He joined Şekerbank in 1983 and has worked
in various positions. Mr. Karakaş has served as Executive Vice President at
Şekerbank since 2006.
Ali Güray DEMİR
Executive Vice President - Credit Monitoring and
Administrative Follow-Up
Born in 1957, Mr. Ali Güray Demir graduated from Hacettepe
University, Faculty of Economics and Administrative Sciences, Business
Administration Department. Ali Güray Demir started his career at
Şekerbank in 1975 and served as Auditor in Internal Audit Board,
Branch Manager and Unit Manager until 2006. Then he was appointed
as Istanbul Europe Region Manager. He was appointed as Şeker
Factoring General Manager in 2010. Ali Güray Demir was appointed as
Şekerbank’s Executive Vice President in charge of Credit Monitoring and
Administrative Follow-Up as of March 1, 2015.
Çetin AYDIN
Executive Vice President - Audit
Born in 1962, Mr. Çetin Aydın is a graduate of Uludağ University, Faculty
of Economics and Administrative Sciences, Department of Economics.
He joined Şekerbank in 1988 as an Assistant Internal Auditor and has held
several positions within the Bank. Mr. Aydın has served as Executive Vice
President since 2005.
Zeki ÖNDER
Executive Vice President - Financial Institutions
Born in 1961, Mr. Salih Zeki Önder is a graduate of California State
University, Department of International Business and Marketing and has
a minor in Economics. Over the course of his professional career, he has
worked at various private banks. Since 2002, Mr. Önder has served as the
Executive Vice President of Financial Institutions at Şekerbank.
Ramazan KARADEMİR(**)
Executive Vice President –Internal Audit and Risk Management
Born in 1965, Mr. Ramazan Karademir is a graduate of Middle East
Technical University, Faculty of Economics and Administrative Sciences.
He began his professional career in 1991 as Assistant Internal Auditor at
Şekerbank and has worked at various branches and departments of the
Bank. Mr. Karademir has served as Executive Vice President at Şekerbank
since April 2006.
Nejat BİLGİNER(**)
Executive Vice President – Human Resources
Born in 1951, Mr. Nejat Bilginer graduated from İstanbul University,
Faculty of Economics. Over his professional career, he has worked
for various private banks. Since April 2010, Mr. Bilginer has served as
Executive Vice President responsible for Human Resources, Training and
Organization at Şekerbank.
Selim Güray ÇELİK
Executive Vice President – Financial Control, Budget and Strategic
Planning
Born in 1971, Mr. Selim Güray Çelik graduated from Ankara University,
Department of Business Administration at the Faculty of Political
Sciences. Beginning his professional career at the Undersecretariat of
Treasury, he subsequently served as Head of Auditors – Department
Head at the Banking Regulation and Supervision Agency and then as
Executive Vice President and Chief Assistant General Manager at T.C.
Ziraat Bankası. In November 2013, Mr. Çelik was appointed as Executive
Vice President at Şekerbank T.A.Ş.
47
Feyza ÖNEN(**)
Executive Vice President – Treasury
Born in 1969, Ms. Feyza Önen graduated from Ankara University, Faculty
of Political Sciences, at the Department of Economics. She began her
professional career at Eximbank and subsequently worked at various
private sector banks. Ms. Önen joined Şekerbank in 2004, and after
her latest position at the Bank as Treasury Group Manager, she was
appointed as Executive Vice President in November 2013.
Gökhan ERTÜRK
Executive Vice President - Retail Banking
Born in 1970, Mr. Gökhan Ertürk holds Bachelor’s degrees in Electronic
Programming, Business Administration and International Relations from
Boğaziçi University. Having started his professional career at Iktisat Bank,
he subsequently worked at Türk Ekonomi Bankası and Akbank T.A.Ş
before serving as Executive Vice President at Denizbank A.Ş. He was
appointed as Executive Vice President at Şekerbank T.A.Ş. in April 2014.
Fatin Rüştü KARAKAŞ
Executive Vice President – Retail Credit Management
Born in 1968, Mr. Fatin Rüştü Karakaş graduated from Marmara
University, Faculty of Economics and Administrative Sciences, at the
Department of Finance. He later received a master’s degree in Money
and Banking from İstanbul University. Mr. Karakaş joined Şekerbank
as Assistant Auditor on the Board of Internal Auditors in 1992 and held
various positions at Şekerbank until January 2013. He then served as
General Secretary at Şekerbank T.A.Ş. Personnel Pension Fund from
January to November 2013. Mr. Karakaş was subsequently appointed as
Executive Vice President at Şekerbank T.A.Ş. in November 2013.
Ahmet İLERİGELEN
Executive Vice President - Corporate and Commercial Credit
Management
Born in 1961, Mr. Ahmet İlerigelen is a graduate of Istanbul University,
Business Administration-Finance and holds a Master’s degree in Money
and Banking from the same institution. Having begun his banking career
at Yapı ve Kredi Bank in 1983, he later served as Executive Vice President
there. Subsequently, he held the position of Executive Vice President
at Tekstilbank, Credit Europe Bank and Fibabanka. Mr. İlerigelen was
appointed as Executive Vice President at Şekerbank T.A.Ş. in June 2014.
Nihat BÜYÜKBOZKOYUN
Executive Vice President – Operations
Born in 1965, Mr. Nihat Büyükbozkoyun graduated from Middle East
Technical University, Faculty of Economics and Administrative Sciences,
at the Department of Public Administration. He joined Şekerbank as
Assistant Auditor in 1992. After serving at the Bank as Head Office
Operations Group Manager, Mr. Büyükbozkoyun was appointed as
Executive Vice President at Şekerbank T.A.Ş. in November 2013.
Hüseyin SERDAR
General Secretary – Support Services
Born in 1954, Mr. Hüseyin Serdar graduated from Gazi Institute of
Education, Department of Mathematics. He began his professional
career in 1974 at Şekerbank, where he has held various positions. Mr.
Serdar has served as the Bank’s General Secretary since 1995.
Halit Yıldız resigned from his position as General Manager and was appointed as Member of the Board of Directors as of February 22, 2016.
(*)
(**)
As of February 1, 2016, Executive Vice Presidents, Nejat Bilginer, Feyza Önen resigned from their duties and Ramazan Karademir retired.
48
SUMMARY REPORT OF THE BOARD OF DIRECTORS
PRESENTED TO THE GENERAL ASSEMBLY
Distinguished Shareholders,
Welcome to the Bank’s General Assembly Meeting.
We have examined the financial statements of the Bank for the 2015 year. We concluded that it does not have any material misstatements or
omissions that may be construed as misleading and that it accurately reflects the Bank’s financial position along with the major risks and uncertainties
it is exposed to.
2015 was a successful year in terms of accomplishing budget targets, as well as implementation of strategic plans.
The matters regarding the Bank’s activities, performance, targets, compliance with internal and external regulations, implementation and realization
of strategic decisions, safeguarding the rights of shareholders and stakeholders were actively overseen.
Full attendance was attained in all Board of Directors meetings held in 2015 and the self-evaluation practice was continued.
The Board of Directors resolved to approve and present to the shareholders for their information the 2015 year Annual Report, together with the
Corporate Governance Compliance Report, which were prepared in accordance with the Resolution No: 28271 of the Capital Markets Board (CMB)
dated January 3, 2014 published in the Official Gazete and the Corporate Governance Principles, stated in the appendix to the “Corporate Governance
Communique numbered II-17.1.
49
The dates of approvals of the Board of Directors of 2015 Financial Statements and Reports are given in the table below:
REPORT
DATE OF APPROVAL OF THE BOARD OF DIRECTORS
31.03.2015 Unconsolidated Independent Auditors’ Report
08.05.2015
31.03.2015 Consolidated Independent Auditors’ Report
13.05.2015
Information Policy Revision
10.08.2015
10.08.2015
02.11.2015
13.11.2015
2015 Corporate Governance Compliance Report
26.02.2016
12.02.2016
26.02.2016
2015 Annual Report
26.02.2016
As of December 31, 2015,
Asset volume increased by 15.24% and reached TL 24.416 million,
Total volume of deposits increased by 9.82% and reached TL 14.868 million,
Total volume of loans increased by 14.21% and reached TL 16.738 million,
Total volume of equity increased by 5.65% and reached TL 2.527 million,
Net profit reached TL 103 million,
Capital adequacy ratio was calculated as 13.66%.
Şekerbank will continue providing its customers with the best services, and will reach its target of becoming the leader bank in financing small
enterprises while maintaining its consistent growth in the following years with the support of our business partners, investors and customers.
We hereby present the Annual Report 2015, balance sheet and income statement for the approval of our shareholders, their proxies.
Chairman of the
Board of Directors,
Halit YILDIZ
General Manager,
Board Member
Viktor ROMANYUK
Vice-Chairman of the
Board of Directors,
Member of the Audit Committee
Halil Can YEŞİLADA
Board Member, Member of the
Corporate Governance Committee
50
BOARD AND COMMITTEES EVALUATION
DISCLOSURES
Şekerbank was among the first in the Turkish finance sector to obtain the Corporate Governance Rating measured against the Corporate Governance
Principles set by the Capital Markets Board. The Board of Directors believes that solid corporate governance of the Bank is one of the major bricks for
the sustainable successful performance of the company.
Each year the Board of Directors conducts in-house assessment of the Board and its Committees. The aim of the Board Effectiveness Assessment
Process is to evaluate the effectiveness of the Board’s and its Committees’ processes, composition and structure in order to identify and implement
any actions required to improve effectiveness. In order to best meet this objective, the Board self-assessment questionnaire, introduced in 2008, was
further reviewed and enhanced based on the best international practices and Board of Directors members’ evaluation results with the focus on four
related areas:
•
•
•
•
Board Structure & Composition
Oversight of Strategy, Risk and Control
Decision Making and Accountability
Development and Culture
Each year the Corporate Governance Committee (CGC) of the Bank reviews the Board of Directors and its Committees’ assessment results and
submits to the Board of Directors a comprehensive analysis of the reporting year assessment results together with the trend/progress. The CGC
provides the Board of Directors with recommendations on further improvement of the Board of Directors effectiveness, addressing the Board of
Directors members’ evaluation and proposals done within the self-assessment process. Continuous improvement in the corporate governance of the
Bank is proven with the high corporate governance rating of the Bank, upgraded each year.
The comprehensive discussion of the CGC report on evaluation among the Board Members, their approval of the CGC recommendations ensures
the Board remained fully effective as Corporate Governance continues to evolve. The Board has considered the recommendations and an update on
progress made against 2014 Board and its Committees’ assessment is set out below.
51
RECOMMENDATION FROM
2014 BOARD EVALUATION
BOARD CONSIDERATIONS
ACTION TAKEN
BOARD AGENDAS
Consider and refine the Board agendas to
enhance focus on strategic opportunities and
growth.
The Board agenda prioritized strategic proposals to allow more time for discussion, debate
and challenge. A separate Board meeting was introduced for annual budget, business plan and
strategy review.
MANAGEMENT INFORMATION
Improving the provision of information to allow
more effective scrutiny and challenge.
The Board management information packs have been reviewed and refreshed to highlight
progress against peer group competitors, strategic initiatives and risk appetite along with
a consolidated business performance. Special attention has been paid to ensure that Board
members receive comprehensive information about the Bank’s and its subsidiaries performance
on time.
BOARD STRUCTURE AND COMPOSITION
Consider improvements to the gender policy at
the Board level.
The gender policy set by the Bank has been followed up and the importance of the issue has
been communicated to the shareholders as well.
OVERSIGHT PROCESS
Improving the oversight functions of the Board.
The Board meetings within 2014 year have been scheduled in a way to ensure the Board
members have sufficient time to study the information provided, meet with the management
and the other Board members, and in case of need, get clarification from the management on
the Bank’s activities and developments.
CORPORATE GOVERNANCE COMMITTEE CONSIDERATIONS
CGC MEETINGS
Increase effectiveness of the Corporate
Governance Committee.
The CGC meetings schedule and agenda revised to allow more time for discussion, debate
and challenge. All CGC members attend the meetings with corporate governance consultants,
regular annual meeting with the corporate governance rating company.
52
SUCCESSION PLANNING AND
NOMINATION IN THE BOARD OF
DIRECTORS
In 2015 there were no changes in the Succession planning policy for the
Board and senior executives of the Bank. The Corporate Governance
Committee, which also performs a Nomination Committee function,
ensured that the succession planning for the senior executives, which
includes the list of key leading positions, the identified competencies,
experience and duties required, evaluation of personality, political savvy,
judgment, leadership skills, has been reviewed on time and complied
by the Bank. The succession planning for the Board of Directors is also
oversight by the Corporate Governance Committee (CGC), which set the
competency‐based criteria to be used as a guideline for evaluation of
the new Board members to be elected to the Board of Directors. The
criteria are described in details in the Corporate Governance Committee
Regulation.
The Corporate Governance Committee reviews all potential nominees,
evaluates the professional competences of a nominee, right mix of
knowledge, skills and experience, his/her cultural fit to the Bank’s profile
and Board, ensures diversity principles in the Board. An attention is paid
to the nominees’ assignments and commitments outside the Bank and
its Board in order to avoid potential conflict of interests. The content
of an introduction session for the new Board members allows smooth
joining to the Board of Directors for new members. The Corporate
Governance Committee makes recommendation on nominees’ list
for election to fill the Board vacancies subject to the approval by the
General Assembly. The list is composed based on the skills matrix and
“gap” analysis as well as consideration of the diversity and cultural
aspects. The Corporate Governance Committee oversight that the Board
composition and number of the independent directors are adequate. Any
improvements required are communicated to the Board of Directors and
discussed at the General Assembly.
53
GENERAL POLICY ON
INSIDER TRADING
Within the framework of Insider Trading Policy, the Bank sets standards
of conduct applicable to all employees of the Bank and its direct
subsidiaries whenever they are conducting securities transactions,
whether for themselves or on behalf of others. It applies also to an
employee’s family members who reside in his/her household. It is
prohibited from buying, selling, recommending or making other
transfers of securities if an employee of the Bank or its subsidiary
is aware of material, nonpublic information about the issuer of the
securities. It also prohibits from disclosing such information to others
who may trade in those securities.
The detailed rules are incorporated in the related internal policies and
procedures of the Bank and are provided to each employee upon his or
her commencement of employment.
Information is considered “material” if a reasonable investor would
consider it important in deciding whether to buy, sell or hold a
company’s securities (in other words, if the information is reasonably
certain to have an effect on the price of the securities, whether such
effect is positive or negative). The information is considered “nonpublic”
if it is not generally available to the public or investment community.
Violations of any portion of the standards of conducts may result in
disciplinary action, including termination of employment. In addition,
violations of insider trading requirements may subject an employee to
civil and criminal penalties, fines and jail terms, and serious sanctions
could be imposed against him or her.
54
ACTIVITIES OF THE
BOARD OF DIRECTORS
In 2015 the Board of Directors continued to perform its functions in a
rational manner and act in framework of good faith through maintaining
the interest balance between the Bank, the shareholders and the
stakeholders. A good practice of setting the dates and major topics of
the Board of Directors meetings at the beginning of the year helps to
the Board Members in increasing their attendance and ensure the wellstructured oversight of the Bank’s activities within the year. The Board
of Directors agenda is structured in a way to allow for monthly update
on the financial position of the Bank, periodic review of its stand in the
sector and towards the peer group, with special attention that the Bank
is managed prudently and in efficient manner for assuring stable and
sustainable activities of the Bank. In addition to the monthly review of
the Bank’s risk limits compliance, to increase pro-active measures in the
Bank’s risk management, the Board of Directors set the Early Detection
and Management of Risk Committee, chaired by the Board of Director
Member in charge of the Internal Systems of the Bank.
The Chairman of the Board leads the annual self-assessment sessions
of the Board and the results are discussed at the Board meeting, the
actions of those discussions are shared in the current report under the
section of the Board self-assessment.
Following the concept of separation of the role of the Chairman from
that of the General Manager, the Bank sees the principle role of the
Chairman of the Board is to manage and to provide leadership to the
Board of Directors of the Bank, being a sound liaison between the
Board and the General Manager, ensure independent functioning of
the Board while considering the shareholders’ and other stakeholders’
interests. The main role of the General Manager is to be in charge of
all aspects of bank’s operations and procedures. Such separation in
roles allows the Bank to have a well-balanced management of the Bank
with due consideration of the business opportunities, but not ignoring
the risks involved, sound business strategy and its execution, securing
the continuity of the Bank’s rich history and trade mark together with
continuous innovation and development.
The Bank pays special attention to the Ethic principles of its top
management and employees. Thus, every newly elected director signs
the “Code of Ethic of the Bank,” which includes professional ethical codes
of the sector, and a comprehensive update is given to such member on
Board member responsibilities and duties. The Corporate Governance
Committee ensures that the Board of Directors understands the Code
of Ethic, cultural and professional code of behavior. The Chairman
of the Board secures open atmosphere in the Board. The Corporate
Governance Committee periodically reviews that legislation changes to
ensure that the Board members are updated on a timely manner. To
strengthen the effectiveness of the Board some measures have been
additionally stipulated in the internal regulation of the Bank. For example,
non-attendance of more than 5 Board meetings in a calendar year
leads to automatic discharge of the Board Member from the Board of
the Bank. Any legal violations by the Board Member are subject to the
legislation framework of Turkey.
55
CORPORATE GOVERNANCE PRINCIPLES
2015 COMPLIANCE REPORT
1. CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE
STATEMENT
Cognizant the importance of corporate governance practices as
much as financial performance, Şekerbank T.A.Ş. (the Bank) decided
to comply in principle with the Corporate Governance Principles
set as recommendations by the Capital Markets Board of Turkey
(CMB), thus, the Report of Compliance with Corporate Governance
Principles has been prepared based on the belief of the Bank in the
Corporate Governance Principles adopted by the CMB, its approach
in strengthening management mechanisms, deeply rooted corporate
structure, consideration of the international principles and sector.
CATEGORIES
WEIGHT
The content of the Bank’s website has been improved and extended for
the purpose of ensuring that domestic and foreign shareholders and
stakeholders are kept informed about the Bank’s operations in a more
transparent manner. We have been working in regard to compliance
with the Corporate Governance Principles throughout the year.
On January 26, 2016 in consequence of annual ordinary assessment
Kobirate Uluslararası Kredi Derecelendirme ve Kurumsal Yönetim
Hizmetleri A.Ş. (Kobirate) announced the Şekerbank’s corporate
governance rating for 2015 year within the context of “Shareholders”,
“Public Disclosure and Transparency”, “Stakeholders” and “Board of
Directors” as 9,17 (91,70%).
The composition of the Şekerbank’s rating scores by subcategories since
the year 2007 are stated below:
SCORE
2007
WEIGHT
2008
2009
2010
2011
2012
SCORE
2012*
2013
2014
2015
Shareholders
0.25
67.61
74.00
85.08
85.43
86.31
93.21
0.25
95.53
97.79
91.05
91.53
Public Disclosure
and Transparency
0.35
71.07
87.04
88.95
89.42
89.45
91.07
0.25
89.44
85.78
90.68
91.51
Stakeholders
0.15
90.83
92.26
97.89
97.89
99.14
96.40
0.15
92.40
94.39
94.67
95.34
Board of Directors
0.25
57.29
74.24
78.21
81.04
81.82
85.25
0.35
87.53
88.17
89.93
90.48
TOTAL
1.00
70.16
81.36
86.64
87.60
88.21
90.95
1.00
90.74
90.91
91.10
91.70
* According to CMB directives, the weights of “Shareholders”, “Public Disclosure and Transparency”, “Stakeholders” and “Board of Directors” were changed in 2013, therefore for the
year 2012, corporate governance rating score was calculated by using the new methodology.
56
SECTION-I SHAREHOLDERS
2. Shareholders Relations Department
As a measure to comply with the applicable legislation, the Articles of
Association and other internal regulations with regard to the exercise of
shareholding rights in the Bank, and to enable exercising of such rights,
Relations with Subsidiaries and Partnership Department has been set up in
2005, and effective as of July 1, 2011 joined to Financial Control, Accounting
and Subsidiaries Department based on the internal regulation of the
Bank dated 21.06.2011 and no: 22. The name of the “Financial Control,
Subsidiaries and Shareholders Relations Department” has been changed
into “Financial Control, Subsidiaries and Shareholders Relations Group”
based on the internal regulation of the Bank dated 06.01.2016 and no: 1.
In accordance with the CMB Rules, Executive Vice President Selim Güray
Çelik, who supervises the Financial Control, Budget and Strategic Planning,
was appointed as a member of the Corporate Governance Committee.
As of 28th of November 2013 the Bank conducts its relations with
shareholders through the Financial Control, Subsidiaries and Shareholders
Relations Group and Investor Relations and Structured Finance
Department.
The details of these Departments are presented below:
In 2015 disclosure of material events, updating of website, preparation
of interim and annual reports, General Assembly Meetings, preparation
of presentations regarding the bank, its interim and yearend financial
data, meetings with shareholders, investors and analysts, responding
to queries raised by shareholders and investors, capital increase
arrangements, and corporate governance activities have been
conducted by these departments.
2 conferences have been attended abroad and a presentation has been
delivered to a wide range of investors. 40 capital and debt instrument
investors have been met with for discussions. Many institutional and
individual investors have been informed by telephone. Information flow
has been provided to 5 institutional investors by e-mail.
3. The Use of Shareholders Rights to Obtain Information
Any developments that would have an impact on shareholders’ rights,
when occurred or learned, are disclosed via the Public Disclosure
Platform. The Bank’s Website features the information relevant to
our investors and shareholders in particular, and to the public in
general, under the investor relations and corporate governance
Financial Control, Subsidiaries and Shareholder Relations Group
NAME SURNAME
TITLE
TELEPHONE
E-MAIL ADDRESS
LICENSE
Group Head
02123197361
orhan.uluyol@sekerbank.com.tr
-
Sibel KIRMIZILAR
Manager
02123197104
sibel.kirmizilar@sekerbank.com.tr
Capital Market Activities Advanced Level License”
“Corporate Governance Rating Specialists License”
Özcan DEMİR
Manager
02123197378
ozcan.demir@sekerbank.com.tr
-
Orhan ULUYOL
Investor Relations and Structured Finance Department
NAME SURNAME
Gülfer TUNCAY
Oya SARI
Anıl ÇALIM
TITLE
TELEPHONE
E-MAIL ADDRESS
LICENSE
Group Head
02123197155
gulfer.tuncay@sekerbank.com.tr
-
Vice President
02123197158
oya.sari@sekerbank.com.tr
Capital Market Activities Advanced Level License
Uzman Yrd.
02123197157
anil.calim@sekerbank.com.tr
-
57
headings in Turkish and English languages. Detailed information is also
made available under the subheadings of the Articles of Association,
Shareholder Structure, Board of Directors, Share Information, Financial
Highlights, Public Disclosure of Material Events, Annual Reports, Investor
Relations, General Assembly Meetings, Prospectuses and Circulars, Trade
Registry, and İnvestor Communications.
All information requests from the Bank’s shareholders are fulfilled,
excluding trade secrets and publicly undisclosed information.
The Bank’s Articles of Association contains no provisions stipulating
the request for appointment of a special auditor. However, this right is
stipulated in the Corporate Governance Policy of the Bank. During the
reporting period, no requests were received by the Bank concerning
appointment of a special auditor.
The Articles of Association contains no provisions regarding the adoption
of material decisions by the General Assembly Meetings such as sale,
acquisition or lease of a substantial amount of assets, and authority
for such decisions are vested to the Board of Directors in line with the
applicable limits. The reason for vesting such decisions to the Board of
Directors is to ensure that decisions are adopted in a faster manner.
At the same time, the annual report of the Board of Directors, balance
sheet, income-expense accounts and the report prepared by the
auditors, selection of the independent audit company, Board’s proposal
for profit distribution, Board of Directors’ discharge and compensations,
real estates that are purchased, sold and leased, expenditures, paid
taxes, changes in the internal policies and procedures, information about
guarantees, bails, mortgages issued on behalf of the Bank and in favor of
the third persons as well as benefits derived from these transactions, the
aid and donations made during the year were presented to the attention
and approval of the General Assembly under separate agenda items.
4. Information on Shareholders’ Meeting
The General Assembly Meeting was convened on March 19, 2015 and
at the same time participation of the shareholders with Electronic
Signature Certificate has been ensured. The quorum of the General
Assembly Meeting was 79.03%, the media representatives did not
attend.
Invitation for the meeting was mailed by post to the shareholders
listed in the shareholders register three weeks in advance to the
General Assembly Meeting date, and the announcements related to the
meeting, including the specimen of the proxy, were also published in
the Turkish Trade Registry Gazette as well as two nationally circulated
daily newspapers. The Bank annual report was available within the legal
period prior to the General Assembly Meeting to the Bank’s shareholders
for information and review. No deadlines are set for registration in the
shareholders register so as to facilitate participation of the holders of the
registered shares in the General Assembly Meeting.
The provisions of the Bank’s Articles of Association allow proxy voting.
The Article 55 of the Articles of Association states that shareholders
may either personally exercise their right to vote at General Assembly
Meetings or do so by a proxy to be appointed externally.
Minutes of General Assembly Meetings are announced on the same day
to the public by means of a public disclosure of material event, published
in the Turkish Trade Registry Gazette and in the Bank’s website.
5. Voting Rights and Minority Rights
There are no privileged voting rights according to the Articles of
Association. There are no cross-shareholding interests between the
Bank and another company. According to the Article 51 of the Articles
of Association, the shareholders representing at least 5% of the share
capital of the Bank may propose agenda items.
6. Dividend Right
Info notes regarding agenda items of the General Assembly have
been prepared and published via website three weeks in advance to
the meeting date. All Bank’s shareholders are entitled to voice their
opinions and pose their questions related to the agenda at the General
Assembly Meetings of the Bank and no limitations are applied in this
sense. Additionally, shareholders may also suggest agenda items for the
General Assembly Meetings, those suggestions are concluded by voting
in accordance with the legal procedure.
The Bank’s share incorporate no privileges. The dividend policy and
principles of dividend distribution over the Bank’s shares are provided
in detail in the Articles of Association and annual report posted in the
Bank’s website. The dividend policy is disclosed annually in the website of
the Bank under the subheading “Dividend Policy”.
58
The decision whether the dividends should be distributed, and the
details, namely recipients, date, amount, form and way of distribution,
in case the distribution takes place is taken by the shareholders at
the General Assembly meeting based on the proposal of the Board
of Directors. The decision on the dividend distribution is published in
the General Assembly Minutes and Annual Report, both of which are
available in the website of the Bank, and in addition to that, the dividend
distribution policy and procedures are also communicated to the
shareholders through publishing in the website of the Bank under the
subheading “Dividend Policy”. No other policies were devised regarding
dividend rights and distribution apart from the stipulation contained in
the Articles of Association.
Dividend distribution takes place among the agenda items discussed
in the General Assembly Meeting where the subject is put on vote by
shareholders, and approved by the General Assembly and implemented
by the Board of Directors. In 2015, in accordance with the decision of
General Assembly to increase the Bank’s net worth, the profit for the
year 2014 has not been distributed as dividend, and booked to reserves
under the net worth.
7. Transfer of Shares
The Bank’s Articles of Association contains no provisions restricting the
transfer of shares.
SECTION-II
PUBLIC DISCLOSURE AND TRANSPARENCY
8. Information Policy
The Information Policy of Şekerbank is composed in pursuant to
legislations and laws of the Turkish Commercial Code, the Banking
Regulation and Supervision Agency (BRSA), the Capital Markets Board
of Turkey, the Istanbul Stock Exchange and Corporate Governance
Principles set by the Board of Directors, published in the Bank’s website.
The Financial Control, Subsidiaries and Shareholder Relations Group
and the Investor Relations and Structured Finance Department have
been authorized to disclose information to the public, and respond to
the queries received by the Bank. Names and duties of the individuals in
charge of implementation of the information policy are available in the
section ‘Shareholders Relations Department’ of the present report.
Disclosures are made in the form of disclosures of material events,
annual and interim reports, financial statements and reports, web pages,
investor meetings, presentations, Turkish Trade Registry Gazette, Official
Gazette, daily newspaper publications and announcements, and press
bulletins.
9. The Company’s Website and Its Content
The Bank has websites at the addresses www.sekerbank.com.tr and
www.4447878.com.tr. Among the information listed in Chapter II, Article
2.2.2 of the CMB Corporate Governance Principles, the website features
trade register information, shareholding structure, top and senior level
directors, the up-to-date version of the Articles of Association together
with the dates and numbers of the Turkish Trade Registry Gazette
issuances where its amendments have been published, disclosures
regarding material events, annual and interim reports, periodical
financial statements and reports, prospectuse and circular, agendas
and info notes of General Assembly meetings, lists of participants
of those meetings, minutes of those meetings, forms for voting by
proxy, rating, Corporate Governance Policy, Conflict of Interest Policy,
Information Policy, Ethical Rules and frequently asked questions with
related responses. The website is kept in Turkish and English, while
special attention is given to keep it up-to-date. All requirements stated
in Corporate Governance Principles for the website of a company are in
place.
10. Annual Report
An Annual report is prepared according to the CMB Corporate
Governance Principles, BRSA’s regulation on the “Principles and
Procedures Concerning the Preparation of the Annual Report by
Banks” and the regulation of Ministry of Customs and Trade regarding
the “Determination of Minimum Content of the Annual Reports of
Companies”, having all required issues addressed within a report.
SECTION-III STAKEHOLDERS
11. Disclosure of Information to Stakeholders
The stakeholders are kept informed by the Bank on all issues related
to them through Minutes of General Assembly Meeting, material event
disclosures, press releases, Şeker Bulletin, meetings, emails and the
Website of the Bank. There is a corporate portal in order to keep the
employees informed. The internal information sharing system “Şeker.
net” enables communication of all announcements via the system in
lieu of using hard copies. In addition to the disclosure of information to
the stakeholders, the Board of Directors set up a model for submission
of requests or complains of the stakeholders to the Management and
published it in the website.
59
12. Participation of the Stakeholders in the Management
•
To enhance the process of taking into consideration the stakeholders’
opinions a comprehensive model to ensure this interaction was set out
by the Board of Directors and is available in the Bank’s website. Besides
employees are constantly encouraged to participate in management,
and their proposals aimed at the improvement of business are taken
into consideration, assessed duly and rewarded. The Bank’s customers
are communicating their wishes and complaints through the Branches,
website (www.sekerbank.com.tr and www.4447878.com.tr) and Call
Center (444 78 78), which are duly evaluated by the Bank’s management.
A scheme showing assessment flow of the opinions, suggestions and
demands of stakeholders is a part of the Conflict of Interest Policy
approved by the Şekerbank’s Board of Directors. Besides, in line with our
vision and within the scope of our value “Continuous Development”, the
Bank set the system named “Bir Önerim Var”, which helps to evaluate the
suggestions, reward and encourage changes and development and to
increase motivation. Based on the accepted suggestions the work plans
are elaborated by the related departments for the system development.
Reviewed and implemented suggestions are communicated on a regular
basis throughout the Bank.
•
•
13. Human Resources Policies
Business principles of Şekerbank are the ethical standards of Şekerbank.
The Human Resources Department is responsible for maintaining ethical
values, set a model for employees and support them.
The Human Resources policy is determined and applied on the basis of
the following basic principles:
• Providing the environment and conditions required for professional
and personal development of all employees without discrimination
among the personnel,
• Applying a fair wage system created according to duties,
responsibilities and performances,
• Attracting to our Bank the human resources, which have the
competencies required by the job needed to achieve the Bank's
target, developing them, supporting them through Training
programs, retain them, and creating backup plans,
• Providing with career opportunities the personnel who are entitled to
be promoted,
• Providing the personnel with a working environment encouraging to
think creatively and generate new ideas to improve the transactions,
opening communication channels through which they can express
their views and suggestions,
• Making efforts to bring the personnel together around common
targets, ensuring corporate loyalty and sharing of the corporate
culture,
Providing appropriate and safe working conditions in compliance
with the nature of the job,
Ensuring that the successful personnel members are awarded,
Ensuring that the personnel work based on the principles of
efficiency and profitability as well as cost-consciously.
The Human Resources Department, organized in the form of
2 Departments, gives the Training, Recruitment and Career
Management, Performance Management, Remuneration Management
and Reporting, Payroll and Personnel Affairs services to meet the needs
and expectations of the Bank.
The Human Resources Department works in coordination with the
other Units in line with the Bank's objectives; and during the recruitment
aims to select the most suitable candidate for the relevant position
by reaching the correct target group. All candidates are subject to
competence-based interviews, which are carried out by the relevant
Manager/Business Line Manager together with the HR Recruitments
and Career Management responsible person. The candidates who have
no banking experience are expected to be successful in the tests to be
applied (General Ability, General Culture Test, Personality inventory, etc.),
and the experienced candidates are expected to have the knowledge,
experience and competencies required by the position. Besides, it is
considered important that all candidates are appropriate for corporate
culture, believe in open communication and continuous development,
are customer and result-oriented, and have the education required for
the position as well as foreign language skills.
In our Bank, all our employees are subject to clear and objective
performance assessment based on goals and competencies. The goals
of the employees in the Head Office, Branches and Regional Offices are
determined in parallel to our Bank's goals. Achievement of these set
goals is monitored throughout the whole year, and a performance score
is formed for each employee. The formed performance score constitutes
the basis of our employees' career plans and influences their annual
wage increases and premiums.
The vacant positions are filled first from the in-house resources, and
supported with training and development programs in line with the
determined career plans.
The promotions in our bank are made twice a year. The employees can
be promoted to an upper position if they display successful performance
and meet the announced criteria.
60
Our employees who are members of Banking and Insurance Employees'
Union (Basisen) are considered Covered personnel, and represented by
at least one person in each workplace. The remuneration and employee
rights of the Covered personnel are regulated through the Collective
Labor Agreement signed between our Bank and Basisen and renewed
biennially. While determining the remuneration and employee rights of
the Non-Covered personnel, the Banking sector wage and application
analyses, the wage scales determined for each duty, and the individual
performance of the employees are taken into consideration.
The Remuneration Committee is responsible for ensuring that the wagesetting practices are compatible with the Banks' ethical values, internal
balances and strategic targets. The Remuneration Committee convenes
a meeting on an annual basis to review the Bank's remuneration policies
and practices.
No discrimination complaint has been placed by any one of our
employees in the year 2015.
14. Ethical Rules and Social Responsibility
Şekerbank was founded in Anatolia 62 years ago, on October 12, with the
savings of hundreds of thousands of cooperative member sugar beet
farmers to support production and rural-development-based economic
development. The Bank fulfills the same mission today and takes a
leading part in financing sustainable development with the responsible
banking understanding rooted in its foundation.
Handling sustainable development with a holistic approach covering
its social, environmental and cultural dimensions, Şekerbank has been
developing its strategy by concentrating on financing environmentally
sustainable and socially inclusive growth.
With EKOkredi, developed to finance energy efficiency investments at
affordable terms, Şekerbank has provided financial support worth more
than TL 672 million in the field of energy efficiency so far, and introduced
energy saving to almost 79 thousand people. Thanks to the energy
efficiency investments made through EKOkredi, 24.2 billion kilowatt-hour
energy has been saved and a total 5.2 million tons of CO2 emission has
been prevented thus far. In addition, within the scope of EKOkredi, which
has enabled the insulation of over 109 thousand houses, 201 million
cubic-meters of natural gas has been saved.
One of the five Turkish banks that entered the Carbon Disclosure Project
(CDP) report 2010, which is one of the leading platforms of the world
in terms of the struggle against climate change, Şekerbank continues
its presence in said project and has measured its own carbon footprint
every year since 2011.
Meanwhile, 19% of the Bank’s foreign sources in the balance sheet are
used to finance energy efficiency and renewable energy investments
thanks to the Bank’s international recognition in the area of financing of
the sustainable development. Thus, Şekerbank functions as a bridge by
bringing long-term affordable resources to its broad customer base in
Anatolia for energy saving and efficiency, which are vitally important for
the development of our country.
A member of the United Nations Environment Programme Finance
Initiative (UNEP FI), Şekerbank is also one of the limited institutions that
are Turkish parties to the United Nations Global Principles Convention
(UN Global Compact). Şekerbank has also signed Business Leadership
Criteria on Carbon Pricing created by the UN Global Compact.
Şekerbank is also a member of the Business Council for Sustainable
Development (SKD), which aims to increase the competitiveness of the
Turkish business world under the guidance of sustainable development
and since 2013, has been involved in the management of the contents
and organization process of the Sustainable Finance Forum, thus
providing a significant level of awareness on sustainable development in
the finance sector.
Financial inclusion, which is the basis of the social aspect of Şekerbank’s
sustainable development strategy, is based on the target of supporting
rural development, which is the basis of its establishment, and
cooperative banking. In this context, the Bank has defined its ‘Community
Banking’ mission as reaching those segments that are unable to
sufficiently benefit from banking services.
In order to contribute to the financing of comprehensive growth,
Şekerbank offers craftsmen and farmers, who have difficulty in
accessing financing sources, the microfinance model, which is the first
and only of its kind in Turkey. It is targeted to popularize in the next
period the microfinance loan model intended for supporting household
production, thus including women into the economy and providing
craftsmen and producers in rural areas with larger access to financial
resources.
Şekerbank, having a vast experience in the field of agricultural banking,
was the first in the world to initiate "Family Farming Banking" in the
final months of 2014 to decrease rural-urban migration and to increase
agricultural production, and carried out an effective advertising
campaign raising awareness throughout society in this regard.
61
Within the scope of the project intended for sustainable production,
unprecedented financing opportunities were provided to farmers for the
first time in the sector to prevent the farmers from leaving their lands
and villages due to reasons such as income decrease, or agricultural
lands being divided by inheritance and thus diminished, limited irrigation
facilities and inability to apply modern agricultural techniques.
With the ‘All Children should be Happy!’ project carried out periodically
since 2010 by Şeker Çocuk Magazine and ADEV (Research Support
Education Foundation), Şekerbank provides books to libraries and toys to
pre-school classes of the underprivileged children of Anatolia. Within the
scope of the project, in 2015, books, stationery materials and toys were
sent to 24 village schools.
Within the scope of "Family Farming Banking", the Bank reached out
20 thousand new farmers’ families and 60 thousand in total, providing
over TL 1.6 billion financing in this field. In 2015, said project was praised
with 20 national and international awards. In 2016, Şekerbank will be
working for the continuation of rural life and increasing the agricultural
production.
Şekerbank has been a multiple pioneer in the sector in the field of
corporate responsibility, and in the 1980s put into operation one of
the first bank art galleries. Considering cultural development to be a
significant component of social development, Şekerbank continues
its activities within the scope of its “Community Banking” mission to
reach out to a broad-based profile that also includes off-center areas.
Şekerbank introduces contemporary art to Anatolia through its project
entitled "Açıkekran", which launched in 2011 in the field of new media arts
and in accordance to our mission of community banking. Works of art
from each exhibition is broadcasted simultaneously through Şekerbank’s
Açıkekran New Media Arts Gallery in Teşvikiye, by means of special
monitors to nine different Şekerbank branches in eight cities, 24 hours a
day. Thus, locals and Şekerbank customers have the possibility of viewing
works by numerous internationally well-known artists and as a result,
becoming further acquainted with contemporary art.
In order to involve more female farmers into all fields of the economy,
Şekerbank, which sponsors the practical entrepreneurship training
sessions held throughout the country, offers female farmers special
solutions to enable them to operate their own businesses. Within this
scope, the Bank, which supports the “Program for Reinforcement of
Women's Entrepreneurship in Agriculture” started by the Ministry of
Food, Agriculture and Livestock, has also made contributions to the
winners of the competition, that was held amongst 407 women in eight
cities, to implement their projects developed based on their business
ideas after receiving practical entrepreneurship training. On the other
hand, Şekerbank also signed a protocol with the Confederation of
Turkish Tradesmen and Craftsmen (TESK) in the year 2015, and provides
tradeswomen with numerous privileged services such as training
opportunities and charge-free banking products.
Şeker Çocuk Magazine, prepared to support the education of children at
primary school age and containing entertaining, informative and skillimproving subjects, has been distributed free of charge for 32 years all
around Turkey in Şekerbank branches, schools in Anatolian villages, child
protection institutions and hospitals. Since 2010, Şeker Çocuk Magazine
has also been published in Braille (embossed alphabet for the visually
impaired) for visually impaired children.
For more than four years, Şekerbank has been supporting the
"Dokunduğum Renk (The Color that I Touch) Project" enabling visually
impaired children to experience culture and art through content specially
prepared for them. Within the scope of the project organized in the
Istanbul Museum of Modern Art for the purpose of increasing the life
quality of the visually impaired, over 1,400 visually impaired children,
youths and adults were accessed in four years.
Şekerbank supports the efforts made for the protection of our own
cultural heritage, raising awareness of it locally and internationally and
handing it down to the next generations. Thus, the Bank also supported
the works carried out to promote “Turkish Coffee Culture and Tradition”
that has entered UNESCO Representative List of the Intangible Cultural
Heritage of Humanity as Turkey's 11th registered cultural heritage.
Being the first bank to obtain corporate governance rating in Turkey,
declared its Banking Ethical Rules in the website, which include the
issues of honesty, impartiality, reliability, transparency, respecting social
utility and environment, and the employees of the Bank commit to
comply with these Rules.
62
SECTION-IV BOARD OF DIRECTORS
15. The Structure and Composition of Board of Directors
The members of the Board of Directors are elected for three-year
term of office and the terms of the current members have not been
expired. No written rule or limitation, unless it is stipulated by the Turkish
legislation, has been adopted regarding performance of any duties
outside the Bank by the members of the Board of Directors. The Board
Members’ resumes and the duties undertaken outside the Bank are
given below:
Chairman of the Board of Directors, Executive Board Member
Dr. Hasan Basri Göktan holds a double undergraduate degree in
Engineering and Economics, as well as a PhD in Economics. He began his
professional career in 1973 at Türkiye Şeker Fabrikaları A.Ş. and served as
the Chairman of Board of Directors and General Manager of Sugar Beet
Cooperatives (Pankobirlik) from 1983 to 1993. Dr. Göktan concurrently
served as General Manager of Sugar Beet Cooperatives and Chairman
of the Board of Directors of Şekerbank T.A.Ş. and Konya Şeker Fabrikası
A.Ş. from 1988 until 1993. Under his leadership, Konya Şeker Fabrikası
A.Ş. was been successfully privatized - a first in the Turkish sugar
industry. Dr. Göktan also briefly served as the Chairman of the Board of
Directors of Yüksel İnşaat A.Ş. alongside his role as General Manager of
Şekerbank T.A.Ş. and the member of the Board of Directors of Türkiye
Şeker Fabrikaları A.Ş. between 1993 and 2002. Dr. Göktan also served as
General Manager and Chairman of the Board of Directors of Şekerbank
T.A.Ş. from 2002 until 2006. Subsequently, he served as General
Manager of Şekerbank T.A.Ş. from 2006 to 2007. On February 1, 2008,
Dr. Göktan assumed the position of Chairman of the Boards of Directors
of Şekerbank T.A.Ş. and its financial subsidiaries; in addition, he currently
serves as the Executive Board of Directors Member of Şekerbank T.A.Ş.
Viktor ROMANYUK
Vice Chairman of the Board of Directors, Independent Board Member
Viktor Romanyuk graduated from Kazakh National University named
after al-Farabi with degree in International Economic Relations
specializing in banking studies, subsequently completing his master’s
degree in Civil Law (LL.M) and post-graduate studies in Public
Administration. In 2007, Viktor Romanyuk acquired Ph.D. degree in
Economics. From 1999 to 2010, Mr. Romanyuk served various managing
positions in international companies and banks. In February 2010, he
joined BTA Bank JSC and as of December 2011, has been taking position
of the Managing Director of the Bank. Since 2012, he is member of the
Management Board of BTA Bank JSC and chairs the Boards of Directors
of BTA Bank CJSC (Belarus), BTA Bank CJSC (Armenia), SK Leasing JSC
(Kazakhstan). During his work in BTA Bank JSC, he was also elected as a
member of the Boards of Directors of BTA Bank JSC (Georgia), BTA Kazan
OJSC (Russian Federation), and member of the Supervisory board of
the First Credit Bureau. He also performed his duties as London-Almaty
Insurance Company JSC Board of Directors member. He was appointed
as the Vice Chairman of the Board of Directors at Şekerbank T.A.Ş. in
March 2013.
Halit H. YILDIZ
General Manager, Board Member
He is a graduate of the Faculty of Business Administration at Marmara
University. Mr. Yıldız has an MBA and MS degree in Management and
Finance from İstanbul University. Mr. Yıldız held managerial positions at
various private banks between 1983 and 2008. He served as an Executive
Vice President in Şekerbank between 2009 and 2014. In April 2014 he has
been appointed as General Manager and Board Member at Şekerbank
T.A.Ş.
Emin ERDEM
Mr. Emin Erdem began his professional career as an internal auditor at
Ziraat Bank, Turkey, and later on he has been working in the international
relations department of the Bank. Later he has been appointed as a
Representative of Ziraat Bank in Germany and the Netherlands. Mr.
Erdem also served as a Country Manager of Ziraat Bank London Branch
in the UK. Afterwards he was appointed as an Executive Vice President
and Member of the Board of Directors at Ziraat Bank, at the same time,
Mr. Erdem served as a Chairman of the Board of Directors of DeutscheTürkische Bank in Germany. He is a member of Şekerbank’s Board of
Directors since 2002.
63
Erdal BATMAZ
Mr. Erdal Batmaz graduated from Ankara University, Faculty of Political
Sciences, Department of Economics. Subsequently, he served as
Specialist and Consultant in the Prime Minister’s Office. Mr. Batmaz also
worked at the State Industry and Laborer Investment Bank (DESIYAB)
on a Konrad Adenauer Foundation scholarship. He held various
administrative positions and later served as Assistant General Manager
and Vice Chairman of the Board of Directors at Emlak Bank. In addition,
Mr. Batmaz served as member of the Board of Directors in a number of
insurance companies and tourism firms. From 1997 to 2003, he was a
member of the Board of Directors at the Capital Markets Board for two
terms. Mr. Batmaz has been serving as a member of Şekerbank’s Board
of Directors since 2003.
Halil CAN YEŞİLADA
Board Member
Mr. H. Can Yeşilada is a graduate of Middle East Technical University,
Department of Business Administration. He has served as Finance
Director at Santral Dikiş A.Ş., Executive Vice President at Manufacturers
Hanover Trust (NY) Bank, Chairman of the Board of Directors and
General Manager at Türk Eximbank, Deputy President at the Privatization
Administration of Turkey and Chairman of the Board of Directors at
Petrol Ofisi. In addition, Mr. Yeşilada has held the positions of Executive
Vice President, CEO and Member of the Board of Directors at various
public and private banks and industrial companies. He has been serving
as a member of the Board of Directors of Şekerbank since 2006.
Üzeyir BAYSAL
A graduate of Ankara University, Faculty of Political Science Department
of Economy-Finance. He began his career in 1985 and continued his
career as Banking Regulation and Supervision Agency Banking Certified
Chief Auditor. He has been an Independent Board Member of Şeker
Finansal Kiralama A.Ş. between April 2012 and March 2013 and he has
been appointed as an Independent Board Member of Şekerbank T.A.Ş. in
2013.
Board Member
Mr. Khosrow K. Zamani is the former Director of the International
Finance Corporation (IFC) for the Southern Europe and Central Asia
region. He is a graduate of Case Institute of Technology (USA), where he
received BSc and MSc degrees in Engineering and Warwick University
(UK), where he earned an MBA. Mr. Zamani continued his postgraduate
studies at Cambridge University (UK) in the Department of Industrial
Management. In 1997, he graduated from the Harvard Business School
Executive Development Program. Mr. Zamani has held various senior
level positions at the IFC. He currently serves as Chairman of the Board
of Directors at Anglo Asian Mining Plc (UK), member of the Board of
Directors and member of the Compensation Committee of Kommerciala
Banka in Serbia and Independent Director at Borusan Makina in Turkey.
Mr. Zamani is the member of the Board of Directors of Şekerbank T.A.Ş.
since 2007.
Nariman ZHARKINBAYEV
Mr. Nariman Zharkinbayev graduated from T. Ryskulov Kazakh
Economics University, with degrees in International Economy and
International Relations. From 2002 to 2008, he has worked in various
positions and companies in Kazakhstan and abroad including BTA Bank
JSC, Alliance Bank JSC, GarantiBank International N.V., since May 2008 he
joined BTA Bank JSC as Head of the Financial Institutions Department. In
November 2012, Mr. Zharkinbayev was appointed as the Member of the
Board of Directors at Şekerbank T.A.Ş.
Murat ISHMUKHAMEDOV
Murat Ishmukhamedov is a graduate of Kazakhstan State Academy of
Management, Department of Finance and Credit. From 1992 to 2007
he worked in various banks in Kazakhstan. Between 2007 and 2012 he
served as an Executive Vice President at Şekerbank T.A.Ş. and he has
worked as Finance Manager in TRG Petrol Ticaret A.Ş. from October
2013 till March 2015. He was appointed as the Member of the Board of
Directors at Şekerbank T.A.Ş. in March 2014.
Daniyar AMANOV
Board Member
Daniyar Amanov is a graduate of S.Ordjonikidze State University, Faculty
of Bank Management. From 1999 to 2012 he worked in various banks
and companies, from 2014 till 2015 he was the Advisor to the Chairman
of the BTA Bank JSC. In January 2013 he joined Standard Insurance JSC
as a Board member and currently serves as a Chairman of the Board of
Directors. He was appointed as the Member of the Board of Directors at
Şekerbank T.A.Ş. in March 2014.
64
NAME&SURNAME
TITLE
DUTIES UNDERTAKEN OUTSIDE THE BANK
COMMITTEES
Dr. Hasan Basri Göktan
Executive Chairman
Şeker Yatırım Menkul Değerler A.Ş. Chairman, Şeker Finansal
Kiralama A.Ş. Chairman, Şeker Faktoring A.Ş. Chairman,
Şekerbank International Banking Unit Ltd. Chairman, SK Danube
A.G. Chairman, Metis Yatırım Holding A.Ş. Chairman, Ulus Vadi
İnş. San. A.Ş. Chairman, Promesa İnş. Yat. ve Yön. A.Ş. Chairman,
Desmer Güvenlik Hiz.Tic.A.Ş. Chairman, Desmer Bilgi ve İletişim
Hiz. Tic. A.Ş. Chairman, Şekerbank Kıbrıs Ltd. Chairman.
Credit Committee Member,
Corporate Governance
Committee Member,
Remuneration Committee
Member
Viktor Romanyuk
Vice Chairman of the
Board of Directors,
Independent Board
Member
ZAO "BTA Bank" CJSC (Belarus) Chairman, "SK Leasing"
(Kazakhstan) Board Member, ZAO "BTA Bank" CJSC (Armenia)
Chairman, BTA Bank JSC Managing Director and Executive Board
Member.
Member, Audit Committee
Member
Halit YILDIZ
General Manager, Board
Member
Şeker Yatırım Menkul Değerler A.Ş. Board Member, Şeker
Mortgage Finansman A.Ş. Chairman
Credit Committee Member
Erdal Batmaz
Şeker Yatırım Menkul Değerler A.Ş. Board Member, Futbol
Adamları Derneği Auditor, İstanbul Mülkiyeliler Vakfı Board
Member.
Emin Erdem
SK Danube AG Board Member
Halil Can Yeşilada
Board Member
Üzeyir Baysal
Independent Board
Member
Soda San.A.Ş. Board Member. Denizli Cam.A.Ş. Board Member,
Selçuk Ecza Dep. A.Ş. Board Member
Member
Khosrow Kashani Zamani
Board Member
Anglo Asian Mining Ltd. Chairman, Sırbistan Kommerciala Bankası
Board Member, Borusan Makine Caterpillar Grubu Board Member
Committee Member
Nariman Zharkinbayev
Murat Ishmukhamedov
Independent Board
Member
Committee Member, Audit
Committee
Daniyar Amanov
Board Member
Committee Member
Standard Insurance JSC Chairman
Pursuant to the independence criteria specified in the article 4.3.6 of Annex “Corporate Governance Principles” to CMB “Communiqué on the
Corporate Governance” Üzeyir BAYSAL is an independent member.
In addition, pursuant to the paragraph 3/a of the article 6 of CMB “Communiqué on the Corporate Governance”, which reads: “The board members
who are assigned as the audit committee members within the board structures of the banks are regarded as the independent board members within
the frame of this Communiqué.”, the Audit Committee Members Viktor ROMANYUK and Murat ISHMUKHAMEDOV are accepted as independent Board
Members.
The declaration of Independent Board Member Üzeyir BAYSAL is on the following page:
65
DECLARATIONS OF INDEPENDENT BOARD MEMBERS
As a nominee for an Independent Member to the Board of Directors of Şekerbank T.A.Ş. (Bank), in accordance with the requirements for an
Independent Member of a Board of Directors stipulated in the legislation, the Articles of Association of the Bank and the Capital Markets Board’s
Corporate Governance Principles, I hereby declare to the Board of Directors of Şekerbank T.A.Ş, shareholders, all related persons and institutions that:
a) In the last five years, myself, my spouse, my blood relatives and my relatives by marriage up to second-degree consanguinity have not established
any commercial relation with the Bank, one of related parties of the Bank, or legal persons to which shareholders having directly or indirectly
at least 10% shares in the Bank capital are related in terms of management or capital to take on important tasks and responsibilities directly or
indirectly, to be employed at management level, to be engaged in capital-related matters, or to have any other commercial relation of vital nature,
b) I have not acted as an Independent Board Member for more than six years within the last ten years in the Board of Directors of the Bank,
c) In the last five years, I have not worked for or functioned as the board member at companies conducting all or a particular part of activity or
organization of the Bank within the framework of the agreements signed, companies performing auditing, rating and consulting of the Bank being
in the first place,
d) In the last five years, I have not been any partner, employee or board member in any of the companies providing services and products for the
Bank to a considerable extent,
e) The share I have in the capital is not over 1%, due to my position as a Member of the Board of Directors; and none of these shares are preferred
shares,
f) As can be seen in my resume; I have vocational training, knowledge and experience necessary for me to fulfill tasks to be undertaken by me as an
independent board member as required,
g) I do not work full time at public institutions and organizations after I was elected as a member,
h) I’m considered to be resident in Turkey pursuant to the Income Tax Law,
ı) I have strong ethical standards, professional reputation and experience to make a positive contribution to corporate actions, to keep my
impartiality in conflicts of interest to come out among company partners, and to make decisions freely by taking into account the rights of
stakeholders.
j) I allocate enough time for corporate affairs in order to follow functioning of activities of the Bank and to absolutely fulfill requirements of the tasks
I undertake;
I have all criterias related to “Independent Board Member” defined especially in the Capital Markets Legislation, related legislation regulations and for
any reason when my hereby statue will be changed, I will immediately inform about this situation to the Board of Directors of the Bank.
Respectfully yours,
Üzeyir BAYSAL
66
16. Principles of the Board of Directors’ Activity
In order to enhance the Board of Directors efficiency the Chairman of the
Board of Directors of the Bank proposes the time schedule and mandatory
agenda items for the Board of Directors meetings to be held throughout the
year, which are subject for further approval of the Board of Directors. Any
other items are submitted for the Board of Directors’ review and approval on
a need basis. The Board of Directors Department is set to keep the members
of the Board of Directors informed and to facilitate communication with
them. 20 meetings were held during the reporting period. Invitations to
the Board meetings are conveyed via email. During the reporting period,
decisions were adopted unanimously and no objecting opinion was voiced
against any decision. The Bank’s Articles of Association contains no provisions
regarding weighted voting right and negative vetoing right. The Board of
Directors ensured participation to the meetings in person. The activities of
the Board of Directors are arranged in accordance with Board of Directors’
Regulation.
17. Number, Structure and Independency of Committees Established by the
Board of Directors
Each committee of the Board of Directors has its own working principles
and function areas described in the related Committee regulation, which
are available in the corporate portal established for the Bank’s staff as well
as in the website of the Bank. The Board of Directors as a guard of a solid
corporate governance of the Bank ensures that any decision-making process
is transparent; avoids any influence on the decision from the executives of
the Bank or any Board of Director member, in particular. Thus, the General
Manager does not serve in any Board of Directors Committees, except the
Credit Committee, which is by nature has executive function.
A Board Member may participate in more than one committee due to
structure of Board of Directors.
The Audit Committee:
Established pursuant to the Article 24 of the Banking Law No. 5411, the
Audit Committee is comprised of two members nominated by the Board
of Directors from among its members to assist the Board of Directors in
fulfillment of audit and supervision tasks, and who assume no executive
roles, but have the qualifications specified in the Article 6 of the Regulation
on Internal Systems of the Banks. The committee members are Viktor
ROMANYUK (Independent Board Member) and Murat ISHMUKHAMEDOV
(Independent Board Member) as the member. The Audit committee held 4
meetings in 2015.
The Corporate Governance Committee:
According to “Communiqué On Corporate Governance” numbered II-17.1 of
the CMB, the Corporate Governance Committee was established in order
to determine as to whether principles of corporate governance applied in
sufficient manner, implement the conflict of interest policy and supervise the
compliance with the principles and policies, advise to the Board of Directors
in order to enhance the implementation of corporate governance and
supervise the work of the investor relations department. The Nomination
Committee has not been established due to the structure of the Board of
Directors, and the Corporate Governance Committee fulfill the duties of that
committee.
Within this scope; the Corporate Governance Committee ensures that a
transparent system on nomination, evaluation and training of the candidates
suitable for the positions of the Board of Directors and executives exists and
advises on the policies and strategies with this regard, evaluates regularly the
structure and efficiency of the Board of Directors and submits its proposals to
the Board of Directors regarding necessary improvements in this respect.
The committee is chaired by Khosrow Kashani ZAMANI (Non-Executive Board
Member), Dr. Hasan Basri GÖKTAN (Executive Chairman), Halil Can YEŞİLADA
(Board Member), Murat ISHMUKHAMEDOV (Independent Board Member),
and Selim Güray ÇELİK (Executive Vice President) are the members of the
Committee. The Corporate Governance committee held 5 meetings in 2015.
The Credit Committee:
That Committee ensures compliance of the Bank’s credit activities with
the Bank’s strategy as well as evaluates credit proposals across the Bank
within the limits set by the Board of Directors. The Committee reviews credit
proposals and approves those, which are within its authority limit, or submit
to the Board of Directors those credit proposals, which exceed the Credit
Committee limits. The Credit Committee discusses credit processes and
improvements of loan quality in order to make further recommendations
to the Board of Directors. 55 meetings were held in 2015. The committee
consists of Dr. Hasan Basri GÖKTAN (Executive Chairman), Emin ERDEM
(Executive Board Member), Halit YILDIZ (Board Member and General
Manager) and Nariman ZHARKINBAYEV (Executive Board Member).
Remuneration Committee:
According to the CMB “Communiqué On Corporate Governance” numbered
II-17.1, the Remuneration Committee was established under the Board of
Directors to provide to the Board of Directors the proposals related with the
remuneration to be paid to the Board of Directors and Executives taking into
consideration the achievement level of the criteria used for remuneration,
determination of the remuneration of the Board of Directors and Executives
based on the principles, criteria and achievement of the long-term goals of
the company and to supervise its implementation. Dr. Hasan Basri GÖKTAN
(Executive Chairman), Viktor ROMANYUK (Vice Chairman, Independent Board
Member), Üzeyir BAYSAL (Independent Board Member) are the members of
the committee. The Remuneration Committee held 1 meeting in 2015.
Early Detection and Management of Risk Committee:
According to the CMB “Communiqué on Corporate Governance” numbered
II-17.1, the Committee was established to provide the Board of Directors with
evaluation of the identified risks (credit, compliance, financial, operational,
reputational risks, etc.), which may jeopardize the Bank’s assets, continued
development and to which the Bank may be exposed within the banking
activities; identify significance of these risks and risks’ correlation; propose
on remedies to be implemented and actions to be taken in this regard. 4
meetings were held in 2015. The committee is chaired by the Internal Systems
Officer Member of the Board of Directors. The other members are the
Executive Vice Presidents in charge of Internal Control and Risk Management,
Audit, Financial Control Budget and Strategic Planning, Corporate and
Commercial Loan Management and Tracking.
67
18. Internal Control and Risk Management Mechanism
Internal Systems are established in order to identify, measure, analyze,
monitor, control and audit the risks to which the Bank may be exposed due
to its strategy and its activities. Internal Systems’ structure is formed in line
with the structure and the scope of the Bank’s activities and the needs of a
changing environment.
The Internal System departments include Internal Audit, Internal Control
& Compliance Department, and Risk Management Department. All these
departments execute their duties under the supervision of the Board of
Director in charge of the İnternal Systems, which is line with the second
paragraph of the article 4 of the BRSA’s Regulation on the Internal Systems of
Banks, according to which the officer in charge of the internal systems should
be a non-executive member of Board of Directors who has the Board of
Directors’ duties and responsibilities within the scope of the internal systems.
The Bank’s internal regulations on the duties, authorities and responsibilities
of these departments are compliant with the articles of the Banking Law and
Regulation on Banks’ Internal Systems and are in force after being approved
by the Board of Directors.
To ensure transparency in selection process of an independent Audit
company the Bank collects the offers from the independent Audit companies
and applies the internal tender regulation with the standardized qualification
requirements. After the shortlist is made, the Audit Committee reviews
the proposals and makes its recommendation to the Board of Directors on
nomination of an independent Audit company. In accordance with the Turkish
legislation, the Board of Directors, in its turn, submits the proposal for the
approval of the General Assembly. The Bank signs the agreement with an
independent Audit company approved by the shareholders, subject to the
provisions of the local and internal regulations.
19. Strategic Targets of the Company
In line with its ‘Community Banking’ mission coming from its foundation
structure, Şekerbank shapes its activities on a responsible and humanfocused banking understanding.
In line with the adopted focused strategy, the Bank finances each level in
the production and trade value chain using its deep-rooted experience in
financing farmers, craftsmen, enterprises and SMEs, and focuses on Anatolia
to cover the non-central locations through its deep-rooted branch network.
As the first bank to obtain a corporate governance rating in Turkey,
Şekerbank distinguishes itself in the sector with its pioneering role in
financing sustainable development and the sensitive strategy it pursues for
supporting comprehensive growth.
Having introduced energy saving to over 75 thousand people, the Bank is a
member of the United Nations Environment Programme Finance Initiative
(UNEP FI), and is also one of the limited institutions that are Turkish parties to
the United Nations Global Principles Convention (UN Global Compact).
Nowadays, Şekerbank continues to pursue the same goal of supporting
economic development based on rural development, which goes back to its
foundation, and supports local development and agricultural production by
extending access to financing.
The implementation plan and budget set within the scope of the Bank’s
general strategic targets are submitted to the Board of Directors, and
interim evaluations are made within the year depending on macroeconomic
developments.
The Board has strong commitments stated in the Human Resources Policy
in regard to diversity policy and ensures that a diverse mix of skills and
talent exists amongst its directors and employees to enhance the Bank’s
performance. The Human Resources Policy addresses equal opportunities
in hiring, training and career development of directors and employees. The
Board is responsible for monitoring Bank performance in meeting the Human
Resources Policy requirements, including the achievement of gender policy
objectives.
Considerable diversity exists throughout the Bank in terms of age, culture
and gender. Gender diversity throughout the organization as a whole is
generally exceptional. Women comprise 50% of employees throughout the
Bank and occupy 29% of senior manager positions. Although due to the
resignation of a woman-executive, currently the senior executive positions in
the Bank are occupied by men, the Board of Director will consider a candidate
for any vacancy to be opened in future at the Executive level without
any discrimination towards gender and based on the competencies and
qualifications of a candidate.
Board Gender Diversity Policy and Targets
There are currently no female directors in the Board of Directors. Taking
that shortness into consideration, the Board of Directors offered to the main
shareholders of the Bank to set a target of appointing one female director to
the Board of Directors till 2019 year with the principle intention of increasing
the number of female directors in the following years.
The Corporate Governance Regulation provides that every three year the
Board sets measurable objectives with a view to progressing towards a
balanced representation of women at a Board and performance against
these objectives is reviewed every three year by the Corporate Governance
Committee.
20. Remuneration of the Board of Directors
In Şekerbank, Remuneration Committee is responsible for advising and
proposing to the Board of Directors the remuneration scheme of the Board
of Directors and Executives taking into consideration the achievement level
of the criteria used for remuneration; determination of the remuneration of
the Board of Directors and Executives based on the principles, criteria and
achievement of the long-term goals of the company; and supervision of
its implementation. Internal balances, market conditions, strategic targets,
individual performance and assigned responsibilities are considered for
setting the wages in Şekerbank. The details of the executive managers’
performance evaluation are stated in the Human Resources Policy and the
Premium Regulation is used for consideration of the premium distribution
among the Executive Directors and managers. The disclosure of the Board of
Directors and Senior Management’ remuneration and benefits is done in the
Annual Report as well as in the Audited Financial Statements of the Bank.
The Article 31 of the Articles of Association stipulates that “remuneration
or attendance fee shall be set by the General Assembly” for the Board of
Directors. Remuneration right and profit sharing amount are designated at
the General Assembly. No loans were extended to the members of the Board
of Directors of the Bank on the basis of the criteria set forth in the Article 50
of the Banking Law, no credits were granted under the name of personal
credit through means of a third party or guarantees in their favor. There is
no nonconformity to the Banking Law regarding loans, credits, etc. to be
extended by the Bank to any Board member.
68
DECLARATION OF COMPLIANCE WITH
The members of the Board of Directors shall oversee that the Bank's organizational structure and activities comply with the Articles of Association, internal
company bylaws and policies; safeguard shareholders and shareholders' interests to the maximum extent possible while pursuing transparency, effectiveness
and compliance; and thoroughly research all possible steps for the development and growth of the Bank.
All candidates shall be present during the election of the members of the Board of Directors. At General Assembly meetings, shareholders shall be informed
about the positions that the candidates for the Bank's Board of Directors hold on the board of other companies and they will be given the opportunity to pose
questions to those candidates. Shareholders shall also be briefed on whether internal company regulations are complied with.
Following the appointment of the members of the Board of Directors, the Corporate Governance Committee provides an introduction program for the newly
appointed members of the Board of Directors. The introduction program, provided in a fast and effective manner, includes the topics mentioned below:
1. Information on the Bank's mission, vision, goals, strategic objectives, current position and challenges,
2. Information on the Bank's market share and financial performance as well as the Bank's Group structure and organizational structure;
3. Information on the business flow, business responsibilities, and internal bylaws and regulations of the Board of Directors;
4. Reference to the existing information flow within the Bank and external regulations governing the Bank's activities;
5. Other issues, if necessary.
ŞEKERBANK T.A.Ş.
Chairman of the
Board of Directors
Halit YILDIZ
General Manager,
Board Member
Viktor ROMANYUK
Vice Chairman of the
Board of Directors,
Audit Committee Member
Halil Can YEŞİLADA
Board Member,
Committee Member
69
CORPORATE GOVERNANCE ACTIVITIES
INFORMATION ON THE BANK’S TRANSACTIONS WITH ITS RISK GROUP
DIRECT AND INDIRECT
SHAREHOLDERS
OF THE BANK
SUBSIDIARIES AND
ASSOCIATES
Related Parties
Loans and receivables
Interest and commission income
Cash
Non-Cash
Cash
Non-Cash
26,266
21,219
398,308
47,233
6,288
140
25,361
350
RELATED PARTIES
Deposit
Interest on deposits
SUBSIDIARIES AND
ASSOCIATES
DIRECT AND INDIRECT
SHAREHOLDERS OF THE BANK
166,173
53,626
3,654
6,519
RELATED PARTIES
SUBSIDIARIES AND
ASSOCIATES
DIRECT AND INDIRECT
SHAREHOLDERS OF THE BANK
Transactions Held for Trading
369,816
-
Total Profit/Loss
(82,938)
-
PROFIT DISTRIBUTION POLICY
The principles for Şekerbank’s profit distribution are stipulated in the
Article 69 of Şekerbank T.A.Ş.’s Articles of Association. According to
this article, the amount remaining after the deduction of all expenses,
provisions and taxes from the income derived by the Bank within an
accounting period is the net profit.
• 5% of the net profit is set aside as the legal reserve requirement.
• Of the remaining amount, an amount equal to 5% of the issued
capital is set aside as the first dividend for shareholders.
• The General Assembly is authorized to decide whether the remaining
profit shall, in whole or in part, be distributed to shareholders, be paid
to the Board of Directors as dividend, or be allocated to extraordinary
reserve.
• Pursuant to sub-paragraph three (3) of paragraph two (2) of the
Article 466 of the Turkish Commercial Code, after setting aside the
legal reserve requirement amount stipulated in paragraph one (1)
of the Article 466, as well as the profit share for the shareholders
equal to 5% of the issued capital, one-tenth (1/10) of the remaining
net profit decided to be distributed to the shareholders and to other
persons participating in the profit sharing shall be allocated to the
legal reserve fund as the second allotment.
70
CORPORATE GOVERNANCE
ACTIVITIES
REMUNERATION OF THE MEMBERS OF THE BOARD OF
DIRECTORS AND THE SENIOR MANAGEMENT
INTERNAL SYSTEMS
It was resolved at the Bank’s Ordinary General Assembly Meeting held on
March 19, 2015 that the Members of the Board of Directors shall be paid
an net salary of TL 7,500 per month; the full-time independent members
be paid the twice of the salary of the normal members, the full-time
Executive Directors and full-time Audit Committee Members be paid the
triple of the salary of the normal members and the full-time Executive
Chairman of the Board of Directors be paid a net amount equal to
threefold of this amount, and that a premium be paid as per the relevant
regulation. The Minutes of the referenced General Assembly is published
on the Bank’s website.
The Bank’s remuneration policy is based on the corporate governance
principles and is oversight by the Remuneration Committee. In 2015, the
Bank has paid to members of the Board of Directors TL 7,320 thousand
and to employees responsible for management TL 12,482 thousand, in
total TL 19,802 thousand.
CORPORATE GOVERNANCE RATING
On January 26, 2016, Kobirate Uluslararası Kredi Derecelendirme ve
Kurumsal Yönetim Hizmetleri A.Ş. (Kobirate) upgraded the Bank’s
Corporate Governance Rating to 9.17 (91.70%) for the year 2015, up from
9.11 (91.10%) for 2014.
Çetin AYDIN (*)
Executive Vice President of Audit*
Ramazan KARADEMİR (*)
Executive Vice President of Internal Audit and Risk Management*
Serkan SALIK
Vice President of Internal Control & Compliance
Mr. Serkan Salık is a graduate of Marmara University, Faculty of
Economics and Administrative Sciences, Department of Political Science
and International Relations. He joined Şekerbank in 1999 as Assistant
Internal Auditor in the Internal Audit Department. Mr. Salık has served as
Şekerbank’s Compliance Officer and Vice President of Internal Control &
Compliance since 2008.
Ebru GÖKGÖNÜL
Vice President of Risk Management
Ms. Ebru Gökgönül is a graduate of Middle East Technical University,
Department of Statistics. During her professional career, she has served
in various departments in public and private sector banks before joining
Şekerbank in 2001. Ms. Gökgönül has served as Vice President of Risk
Management since October 2004.
(*)
Kobirate made an assessment on the Bank’s practices in the areas of
“Shareholders”, “Public Disclosure and Transparency”, “Stakeholders”
and “Board of Directors”.
SUB CATEGORIES
WEIGHT
2015 RATING
Shareholders
0.25
91.53%
Public Disclosure and Transparency
0.25
91.51%
Stakeholders
0.15
95.34%
Board of Directors
0.35
90.48%
TOTAL
1.00
91.70%
The Bank's 2015 corporate governance rating report is accessible on the
Bank's website (www.sekerbank.com.tr).
Please see the Senior Management Section.
71
INFORMATION ON SUPPORT SERVICES PROVIDERS
NO.
SUPPORT SERVICES PROVIDER
1
Desmer Bilgi ve İletişim Hizmetleri Tic. A.Ş.
2
C/S Enformasyon Teknolojileri Limited
Şirketi
3
Hobim Djital Elektronik Hizmetleri A.Ş.
4
Austria Card Turkey Kart Operasyonları
A.Ş. (previous name Provus Kart
Hizmetleri A.Ş.)
5
Desmer Güvenlik Hizmetleri Ticaret A.Ş.
6
MTM Holografi Güvenlikli Basım ve Bilişim
Teknolojileri San. ve Tic. A.Ş.
7
Formalis Bilgi Teknolojileri Ltd. Şti.
8
E-Kart Elektronik Kart Sistemleri San. ve
Tic. A.Ş.
9
Telekurye Dağıtım ve Kurye Hizmetleri
A.Ş.
10
Asseco See Teknoloji A.Ş.
11
12
13
OD Yazılım Enstitüsü Kurumsal Çöz. ve
Dan. Ltd. Şti.
KARTEK Kart ve Bilişim Teknolojileri Ltd.
Şti.
Kurye-Net Motorlu Kuryecilik ve Dağıtım
Hizmetleri A.Ş.
DURATION OF CONTRACT
The agreement was concluded with a ten-year term. If either party fails to notify the other party
upon cancellation of the agreement via written notification 45 days prior to the contract expiry
date, the agreement is considered renewed.
The duration was changed to 5 years as of June 1, 2014 pursuant to the amended agreement
dated August 25, 2014. According to the transfer agreement signed on October 14, 2015, the
contract was transferred to C/S Enformasyon Teknolojileri Limited Şirketi on the same terms.
The agreement was drawn up with a three-year term. If either party fails to notify the other
party upon the cancellation of the agreement via written notification 3 months prior to the
contract expiry date, the agreement is considered renewed for a year.
The agreement remains valid for two years from the signing date and is extended for one year
unless either party issues a notice of cancellation to the other party one month before the contract
expiry date.
Ten years (The agreement is extended under the same conditions unless either party notifies
the other party via written notification 30 days before the end of this term.)
2 years
The agreement is considered extended for one year under the same conditions unless the
parties issue a notice of cancellation one month before the contract expiry date.
The agreement remains valid until December 31, 2014, and is extended for one year unless either
party serves a notice of cancellation to the other party one month before the contract expiry
date.
parties issue a notice of cancellation 30 days before the contract expiry date.
In the absence of a termination notice by the parties one month before the expiry date of
the contract, the contract shall be deemed extended for one year under the same terms and
conditions.
72
CORPORATE GOVERNANCE
ACTIVITIES
ŞEKERBANK’S POLICY AGAINST THE LAUNDERING OF CRIMINAL PROCEEDS AND TERRORISM FINANCING
Within the scope of its Program for Compliance with Legislation Against the Laundering of Criminal Proceeds and Terrorism Financing, Şekerbank has
completed such processes as designation of a compliance officer, establishment of the Compliance Unit and setting of in-house policies in written;
and the Bank undertakes control, monitoring, risk management, training and internal audit operations against criminal proceeds.
By expending these efforts, Şekerbank aims to comply with laws as well as regulations adopted by agencies authorized by the laws; prevent the
use of the Bank’s facilities for money laundering purposes; identify any risky transactions, services and locations which might be prone to money
laundering; raise awareness among employees in regard to compliance with legal obligations; protect the Bank’s reputation and the quality of its
customer base, while running banking operations.
In line with its customer acceptance policy created for this purpose, Şekerbank takes preventive measures to avoid accepting as customers those
individuals and institutions whose wealth and funds might not have been acquired through legitimate means, refrains from establishing customer
relations - including the extension of retail or commercial loans- with such individuals, and refuses the collaterals and guarantees of such individuals
even when they are not its direct customers, and does not include banks in risky regions in its correspondent bank network.
Legislative Compliance Policy
While providing banking services, it is essential to comply with laws as well as regulations adopted by agencies authorized by the laws. For this
purpose, the Internal Control and Compliance Department monitors relevant legislative changes, provides comments on it, and announces them
across the Bank. The effect of such legislative changes on banking practices are assessed, and related units work in coordination to resolve any issues
that might arise during the implementation phase. Furthermore, compliance controls are performed to ensure that the Bank’s current or planned
activities as well as new transactions and products are in full compliance with the Banking Law and other applicable legislation, in-house policies and
rules, as well as widely accepted banking practices.
Serkan SALIK
Compliance Officer
73
DECLARATION OF RESPONSIBILITY FOR THE 2015 ANNUAL REPORT
We have examined the Bank’s Annual Report for 2015. The Annual Report does not have any material misstatements or omissions that may be
construed as misleading and accurately reflects the Bank’s financial position along with the major risks and uncertainties to which it is exposed.
Halit YILDIZ
General Manager
Executive Vice President
Board Member,
Acting Chairman of the
Viktor ROMANYUK
Vice Chairman of the Board of Directors,
Audit Committee Member
Orhan ULUYOL
Group Head of Financial Control,
Subsidiaries and Shareholder Relations
74
DISCLOSURES ON THE BANK’S FINANCIAL
POSITION, PROFITABILITY AND DEBT SERVICING
CAPABILITY
During the meetings where internal and external developments are
evaluated on a weekly basis pursuant to the general policies set by the
Assets & Liabilities Committee; expenses related to interest rates and
liquidity, financing, solvency, risk management, market risk, the analyses
related to credit and operational risks, the real interest rate calculations
in domestic and foreign markets and the financial models created in
accordance with this framework are used. As a result of these efforts,
in 2015 the Bank’s net profit reached TL 103 million, asset size reached
TL 24,415,966 thousand, growing 15.24% compared to the previous year.
PROFITABILITY
DEVELOPMENTS REGARDING ASSETS
DEBT SERVICING CAPABILITY
The growth of the Bank’s assets in 2015 originated predominantly from
the expansion of the loan portfolio. Total loans grew by 14.21% compared
to the previous year, and reached 68.55% of the total assets. At the end
of 2015, the Bank set aside reserves equivalent to 53.96% for its nonperforming loans. The share of the Bank’s securities portfolio in total
assets was 12.30% in 2015.
Şekerbank’s loans/deposits ratio stands at 113% as of 2015 year-end,
indicating the growth potential of the Bank’s loans that can be funded
by deposits. In addition, an extensive branch network and a stable
savings deposit base have positive effects on Şekerbank’s debt servicing
capability. Interest sensitivity of the time deposit and solid demand
deposit volume also make Şekerbank more advantageous compared to
its rivals in terms of liquidity. DEVELOPMENTS REGARDING LIABILITIES
Focusing on growing its deposit base, the main funding source, the
Bank’s deposits constitute 60.89% of the total liabilities while the
ratio of deposits to loans stands at 113%. Despite of the competition
environment, the Bank managed to increase its deposits by 9.82% over
the previous year. In 2015, Bank’s equity reached TL 2,526,942 thousand,
growing by 5.65%. As a consequence, its capital adequacy ratio was
13.66% in 2015.
In parallel to the balanced and profit-oriented growth policy pursued in
response to the market conditions, interest income from loans reached
TL 2,035,110 thousand while the interest expenses on deposits reached
TL 899,019 thousand. Bank’s net interest income reached TL 1,056,385
thousand, as its net fee and commission income reached TL 285,916
thousand while its operating income was TL 1,368,999 thousand. Bank’s
net profit for 2015 as a result of all its activities was TL 102,649 thousand.
In 2015, approximately 2 thousand TL was donated.
EXPECTATIONS FOR THE FUTURE
With the decreasing support in global liquidity circumstances, rising
geopolitical problems, and the slowdown of the Chinese economy, 2015
was a year where weakening trend in emerging economies continued.
In December, US Federal Reserve (Fed) increased the interest rates by
25 basis points. This was the first step ending the abundant and cheap
money period that has dominated the world in the last seven years, and
thus it was the most outstanding development of this challenging year.
After a period of uncertainty in both global and local arena, when
we look at 2016; although a tough period is expected especially for
developing countries, for Turkey - the positive development is that
it overcome the political uncertainty period, that had put significant
pressure on economic performance, Moreover, the expectation that
Turkey will be positively dissented from other developing countries in
the upcoming period, is strengthened due to the fact that the MediumTerm Programme (MTP) announced on the 11th of January 2016, did set
achievable targets, and that a determined approach in implementing
the required structural reforms in order to achieve these objectives, was
shown. Hence, in MTP, Gross Domestic Product (GDP) growth forecast
was increased from 3% to 4% for 2015 and 4.5% and 5% for 2016 and
2017 respectively. The 4.5% level forecasted for 2016 is above 4.3%
that was announced by the IMF as the growth forecast for developing
countries. We should mention that; this forecast also includes GDP
growth forecasts for China and India.
75
When we look at the balance of payments, it is expected that commodity
prices showing serious decline due to the impact of changing global
monetary policies and weak demand, will continue to support current
account deficit in 2016. As we have seen in 2015, also in 2016, the current
account deficit/GDP ratio is expected to be around the medium-term
target 4.5%-5% in spite of the GDP growth.
On the other hand, taking into consideration that the fiscal discipline
supports the investment grade reached by Turkey, forecasting the
budget deficit as 1.3% of the GDP while as per the Maastricht criteria
the budget deficit limit is set as3% is perceived positively in the sense to
protect the strength in this area.
For 2016, Turkish banking sector is anticipated to reach 17% asset, 18%
loan and 16% deposit growth. Within the light of these expectations,
loan to deposit ratio will be around 110%. With the forecast of increasing
costs in both swaps and foreign borrowings due to the acceleration in
Fed’s increasing interest rates, it is anticipated that potential increase
in funding costs may have negative impacts on banking margins and
may have pressure on returns on capital. For this reason profitability of
the sector is likely to remain below expectations, and it is expected that;
corporate and commercial loans –that increased their share in total
loans in the sector from 57% to 60% in 2015 – will maintain their rising
trend in 2016 as well, and will be the driving force of credit growth.
76
ŞEKERBANK’S
CREDIT RATINGS
FITCH RATINGS (23.02.2015)
Long-term local currency issuer default rating
BB-
Long-term foreign currency issuer default rating
BB-
Short-term local currency issuer default rating
B
Short-term foreign currency issuer default rating
B
Long-term national default rating
Financial capacity rating
Supporting point
A+(tur)
bb5
MOODY’S (CREDIT RATINGS WERE REVISED ON SEPTEMBER 21, 2015)
Long-term local currency issuer default rating
A3.tr
Short-term local currency issuer default rating
NP
Ba2
NP
A3.tr
Short-term national default rating
TR-2
JCR EURASIA RATING (27.07.2015)
Long-term international foreign currency issuer default rating
BBB-
Long-term international local currency issuer default rating
BBB-
AA-(Trk)
Short-term international foreign currency issuer default rating
A-3
Short-term international local currency issuer default rating
A-3
Short-term national default rating
A -1+ (Trk)
CAPITAL INTELLIGENCE (22.12.2015)
BB
B
Financial strength rating
BB
77
FIVE YEAR FINANCIAL HIGHLIGHTS
FINANCIAL INDICATORS (TL
THOUSANDS)
2011
2012
2013
2014
2015
Total Assets
14,399,424
14,517,918
18,725,017
21,187,288
24,915,966
Total Loans (Net)
8,728,052
10,084,765
13,546,424
14,655,079
16,737,565
1,462,137
1,824,741
2,055,448
2,391,813
2,526,942
Total Deposits
9,078,449
10,137,906
12,639,239
13,538,608
14,867,633
Pre-Tax Profit
157,556
310,685
264,339
280,701
85,246
Net Profit
118,044
240,302
210,216
223,969
102,649
FINANSAL RATIOS (%)
2011
2012
2013
2014
2015
Capital Adequacy Ratio
13.24
14.48
13.54
14.60
13.66
Securities/Total Assets
24.65
13.96
9.03
11.46
12.30
Loans/Total Assets
60.61
69.46
72.34
69.17
68.55
Deposits/Total Assets
63.05
69.83
67.50
63.90
60.89
78
THE AUDIT COMMITTEE’S ASSESSMENT OF THE
INTERNAL SYSTEMS IN 2015
In order to ensure effective and efficient execution of the activities under the Internal Systems in 2015, the Audit Committee executed required
monitoring and control efforts as part of its responsibilities.
Under the Internal Systems, the Risk Management Department operates with the active monitoring and supervision of the Board of Directors and
Board of Directors Member responsible for Internal Systems.
The Risk Management Department undertakes efforts to determine, measure, analyze and monitor the Bank’s risk exposure with a systematic
approach.
To this end, the Risk Management Department uses improved risk measurement, evaluation and analysis techniques in its assessment of credit risk,
market risk, interest rate risk arising from banking accounts, liquidity risk and operational risk areas. The Department ensures the timely and healthy
functioning of information flow and reporting channels.
The Risk Management Department monitors domestic and international economic and financial developments as well as banking laws, rules and
regulations. The Department develops risk management solutions and applications based on its findings. As such, good corporate governance is
conducted in an effective manner.
The Bank’s senior management and business lines revise the Bank’s risk management policies at least once a year with regard given to the Bank’s
growth strategy at the time and prevailing market conditions. The revised and updated policies come into force with the approval of the Board of
Directors.
The major risks of the Bank – strategic risk, credit risk, market risk, interest rate risk arising from banking accounts, liquidity risk and operational risk
– are limited in proportion to the Bank’s net worth; as such, “risk limits” are structured and implemented. Compliance with the referenced limits is
taken into account in the Bank's strategic decision making processes, as a mandatory agenda item at Board meetings.
With the Bank's Internal Capital Adequacy Assessment Process, Şekerbank carries out stress tests and scenario analyzes to measure the impact of
the possible losses that may occur in the most extreme conditions on the Bank’s financial structure and the results are presented to the Board of
Directors. However, the Internal Capital Adequacy Assessment Process is considered to be a building block that is fed and developed by corporate
governance, rather simply being a measurement process.
The Internal Audit Department is responsible for auditing the Bank’s activities in terms of compliance with the Banking Law and its related regulations,
other relevant legislation and the Bank’s internal strategies, policies, principles and objectives; and provides assurance to the Bank’s senior
management regarding the effectiveness and adequacy of the internal control and risk management systems. The Internal Audit Department is
authorized to conduct audits, examinations and investigations in all units, branches and participations of the Bank.
79
In 2015, the Internal Audit Department continued to conduct periodic and risk-based on-site audits in accordance with the Annual Audit Plan approved
by the Board of Directors. In addition, the Department focused on “central audits” that use remote auditing techniques and performed process audits
to test and evaluate the effectiveness, adequacy and compliance of the internal controls over the banking processes. Further, information systems
processes were reviewed in accordance with the COBIT control framework.
In 2015, audits of 8 banking processes were completed; 140 branches, 20 units and 6 participations were audited; special purpose and short-term
“spot audit” activities were performed in 40 branches. Thanks to the Bank’s risk-based audit structure, a large portion of Şekerbank’s loan portfolio
was audited and operational procedures were reviewed in an effective manner using sampling techniques in 2015.
The results of the auditing activities were prioritized and reported to the Audit Committee, the Bank’s senior management and relevant business
units. The actions taken in response to the audit findings were also monitored closely by the Internal Audit Department.
During the central control process executed by the Internal Control and Compliance Department, the operations of Bank’s business lines are
periodically monitored. Furthermore, control efforts to establish an efficient internal communication channel were carried out for the accounting and
financial reporting system. Controls were performed on the banking processes and information systems within the COBIT framework to ensure that
management of the Bank’s information systems adheres to the principles of integrity, sustainability, accessibility and confidentiality.
To prevent interruptions of banking activities, Şekerbank carried out necessary controls to make sure that the Bank’s business continuity and backup
plans are efficient and in harmony with the current targets and strategic priorities. As of the controls in place, it has been ensured that customer
files on loans extended at the Bank, investment processes, branch operations and security practices were controlled in accordance with legal
requirements and the Bank’s standards. Support services received from third party providers were also controlled to prevent possible risks that may
originate from obtaining external support services. Findings and recommendations were regularly presented to the Audit Committee and the senior
management. Control results and the outcomes of the findings were monitored at the branch, unit and region levels.
The Bank actively conducts control, monitoring, risk management, training and internal audit activities to combat money laundering and financing of
terrorism.
The main objectives are compliance of the Bank personnel with legal obligations; and maintenance of the Bank’s reputation and customer quality
during the conduct of its banking activities. Pursuant to the customer acceptance policy set as part of this effort, measures are taken to prevent the
Bank from accepting as the customers those individuals and entities for which there is doubt about the legality of the source of their wealth and
funds.
In conducting banking activities, it is of paramount importance to comply with the Banking Law as well as with the regulations set out by the agencies
authorized under the Banking Law. Additionally, relevant legislative changes are monitored and communicated within the Bank together with the
relevant comments; adequate support is provided to the business lines in regard to the necessary changes required to be done in the banking
processes in terms of possible changes in legislation.
The fundamental objective of the Audit Committee is to improve the “risk perception” and “control culture” of the Bank’s decision-making and
compliance mechanisms. This perspective will be maintained in the period ahead as part of our strong corporate governance approach.
Viktor ROMANYUK
Vice Chairman of the Board of Directors,
Murat ISMUHAMMEDOV
Board Member,
80
RISK MANAGEMENT
SYSTEM STRATEGY
1. The Risk Management System, taken as an integral whole, is
structured so as to incorporate organizational, managerial and
operational processes and IT Systems, and create risk awareness.
2. The Risk Management System is intrinsic to all of the Bank’s
operations; as such, each and every employee is responsible for the
implementation of the system.
3. The Risk Management System is structured so as to cover all
establishments within the scope of consolidation.
4. The Risk Management System aims to reach the following targets as
regards the Bank’s internal assessment process for capital adequacy:
• To preserve the Bank’s financial integrity,
• To align the Bank’s risk appetite with its strategies and activities,
• To set the Bank’s capital requirement in line with its risk appetite,
• To adopt a risk-based perspective in the following areas:
- Across the units,
- While structuring portfolios,
- In processes of authorization,
- In pricing.
• To make the Performance Management System efficient,
• To enhance “Corporate Governance Principles” and transparency.
STRUCTURE AND SCOPE OF THE RISK MANAGEMENT SYSTEM
1. The Risk Management System’s structure covers the following
mechanisms of decision making and execution, as well as the
monitoring, control and audit mechanism:
• Board of Directors,
• Senior management,
• Units forming the Internal Systems,
• Committees established by the Board of Directors within the
scope of the Risk Management System,
• Committees established by the senior management within the
scope of the Risk Management System.
OBJECTIVES OF THE RISK MANAGEMENT SYSTEM
1. To establish a common risk culture by means of efficient risk
management strategies and policies,
2. To set Risk Limits and manage their procedures of implementation in
an efficient manner,
3. To enhance the Bank’s asset quality,
4. To meet the Bank’s obligations in full,
5. To align the Bank’s risk appetite with its strategies and activities,
6. To set the Bank’s capital requirement in line with its risk appetite.
THE MAIN POLICY OF THE RISK MANAGEMENT SYSTEM
1. The Risk Management System and activities within this scope are
organized and are actively supervised and audited.
2. Strategies, policies, risk limits and procedures of implementation are
shaped in accordance with the scope and structure of the Bank’s
strategies and activities, and in view of changing conditions.
3. A relevant division of duties is set across the Bank to prevent error,
fraud, conflict of interest, misuse of information and Bank resources.
4. The duties, authorities and responsibilities of the units, committees
and staff across the Bank are clearly defined in written form.
5. The IT Systems infrastructure is aligned with the quality and
complexity of the Bank’s strategies, activities and products/services.
6. The IT Systems infrastructure is organized so as to enable the
identification, measurement, monitoring, control and timely
reporting of any risk the Bank might be exposed to.
7. Information flow is organized across the Bank so as to reach
management echelons and staff vertically and horizontally, in
accordance with IT security principles.
8. It is ensured that the management echelons and staff have full
knowledge of the Bank’s objectives and strategies, policies, risk limits
and their procedures of implementation.
81
INSTRUMENTS OF THE RISK MANAGEMENT SYSTEM
1. Establishment of Risk Limits,
2. Creation of an efficient division of duties (including decisions making
mechanisms),
3. Establishment of efficient information flow channels (including
financial/managerial reporting),
4. Efficient process management,
5. Establishment of effective internal controls,
6. Emergency and business continuity planning.
INFORMATION ON RISK MANAGEMENT POLICIES
BY RISK TYPE
The Bank’s risk management strategies, policies and procedures,
approved by the Board of Directors, frame the written standards for
systematic identification, measurement, monitoring, analysis and control
of the risks that the Bank may be exposed to.
These standards are revised and if necessary updated at least once a
year by the senior management, under the chairmanship of the General
Manager and the coordination of the Risk Management Department,
according to changes in market conditions and the Bank’s strategy.
The revision process is geared toward identifying whether the current
strategies, policies and procedures are meaningful and sufficient as
regards the Bank’s activities. The updated strategies, policies and
procedures enter into force upon the approval of the Board of Directors.
As for its internal assessment process for capital adequacy, the Bank
sets limits for the credit risk, market risk and operational risk, which are
included in the calculation of the Capital Adequacy Ratio, as well as for
those risk factors not included in the said calculation (concentration risk,
interest rate risk arising from the banking book, liquidity risk, etc.), with
due consideration of the Bank’s net worth. .
“Risk Limits” and “Key Risk Indicators” have been defined accordingly,
stress tests and scenario analyses have been conducted in parallel,
and the adequacy of the internal capital requirement is assessed with
regards to current and future operations.
CREDIT RISK
Credit risk is the possibility of loss that the Bank might suffer in case the
loan recipient, whether an individual or institution, fails to comply with
the loan agreement partially, entirely or in a timely manner.
In accordance with the applicable legislation and the policies and
procedures of implementation set by the Board of Directors, the
Bank’s loan allocation activities are performed in line with the principle
of “division of authorities”, that is, executed through independent
marketing, allocation monitoring, control and audit functions.
Credit allocation is performed on a debtor or a debtor group basis
within certain limits. These limits are allocated in accordance with
the regulations and within the framework of lending authorization
determined by the Board of Directors.
During the loan allocation process, risk rating and scoring systems are
effectively deployed. According to the Bank’s loan policy, in addition
to these systems, limit and collateral processes are also utilized as
complementary elements reducing credit risk. The credit worthiness of
debtors is monitored periodically; loan limits are updated once a year, or
whenever necessary according to economic conditions.
The Bank’s Board of Directors has defined limits of concentration on
the basis of industry, region, debtor or debtor group. These limits are
monitored regularly, revised once a year, and updated whenever it is
necessary according to economic conditions and changes in the Bank’s
strategy.
The Bank’s credit risk profile is monitored and assessed by the Risk
Management Department. The Risk Management Department presents
the results of compliance of the Bank’s activities and monitoring
assessment activities to the Assets & Liabilities Committee on a weekly
basis and to the Board of Directors on a monthly basis. This presentation
is a mandatory agenda item at the meetings of the Board of Directors.
MARKET RISK
Market risk is the possibility of loss that the Bank may suffer due to
changes in the prices of financial instruments featured in the trading
book, arising from fluctuations in market prices.
The Bank’s policies and procedures of implementation as regards market
risk are in accordance with the current banking legislation and approved
by the Bank’s Board of Directors.
The Board of Directors has approved both nominal-based limits
(transaction, dealer, desk and stop-loss limits) and risk-based limits
(Value-at-Risk limits) monitored on a daily basis; all of which are
reviewed at least once a year according to market conditions and
changes in the Bank’s strategies, and updated whenever deemed
necessary.
At Şekerbank, market risk exposure is measured, monitored and
reported on a daily basis. In this vein, “Value-at-Risk (VaR) Methods” are
applied as an internal model. Among these VaR methods, the “Variance
Covariance Method,” also known as the “Parametric Method,” is used
for reporting purposes, while the “Historical Simulation” and the “Monte
Carlo Simulation” methods, on the other hand, are used for comparison,
in times of significantly increased volatility. VaR measurements are based
on an observation period covering the last 250 workdays and a 99%
confidence level.
82
RISK MANAGEMENT
SYSTEM STRATEGY
In “Economic Capital” measurements based on VaR, a 10-day holding
period is applied. Additionally, stress tests and scenario analyses are
applied in order to measure and monitor the impact of excessive market
volatility, while the effectiveness of the Bank’s internal model is tested by
using “retrospective tests” on a daily basis.
The Bank’s market risk profile is monitored and assessed by the Risk
the results of its compliance, monitoring and assessment activities to
the Assets & Liabilities Committee on a weekly basis and to the Board of
Directors on a monthly basis. This presentation is a mandatory agenda
item at the meetings of the Board of Directors.
INTEREST RATE RISK ARISING FROM THE BANKING BOOK
The Bank can be exposed to interest rate risk arising from the banking
book as a result of the following factors:
• The reprising risk which arises from the mismatch between the
maturity of the Bank’s assets and liabilities, and interest-sensitive
off-balance sheet items (fixed interest items) and reprising periods
(variable interest items),
• The yield curve risk which arises from a change in the shape and/or
slope of the yield curve due to the variation in the change in market
interest rates by different maturity buckets,
• The basic risk which arises from the variation in spreads due to the
mismatch in the timing and/or value of interest rates applied to
assets and liabilities, and off-balance sheet items which have similar
maturity and reprising periods,
• The option risk which arises from the deviation of assets and
liabilities, as well as interest-sensitive off-balance sheet items
away from their maturity dates set in contracts, in cases such as
(complete/partial) reimbursement of loans before maturity date,
recall of syndication loans, withdrawal or renewal of term and
maturity deposits, etc.
The Bank’s policies and procedures related to the interest rate risk
arising from the banking book are in line with banking legislation and
approved by the Bank’s Board of Directors.
The Board of Directors has approved Risk Limits based on the net worth,
as regards the interest rate risk arising from the banking book outside
the trading book. Monitored on a weekly basis, and reviewed and revised
at least once a year with respect to market conditions and changes in
the Bank’s strategies, these limits are based on the Bank’s net worth and
determine the acceptable level of interest rate risk by certain maturity
buckets.
The Bank employs two separate approaches, i.e. “Income Approach”
and “Economic Value Approach” in order to measure and monitor
the impact of interest rate risk on its income and capital. The “Income
Approach” is employed in order to calculate the impact of movements
in market interest rates on Net Interest Income, while the “Economic
Value Approach” is employed in order to calculate the same impact on
the Economic Value of Equity. As the “Economic Value Approach” offers
a much more comprehensive view since it considers the present value
of all the future cash flows, it constitutes the base for the Bank’s Asset
Liability Management. Additionally, stress tests and scenario analyses
are applied in order to measure and monitor the changes in interest
rate sensitive on-and off-balance sheet items, arising from adverse
movements in interest rates.
It is the priority of the Asset Liability Management to provide protection
against fluctuations in market interest rates. In this vein, gap analyses,
duration and economic value analyses as well as sensitivity analyses are
evaluated on a weekly basis by the Bank’s Assets & Liabilities Committee.
The Bank’s interest rate risk profile is monitored and assessed by the Risk
Directors on a monthly basis. This mandatory is a required agenda item
at the meetings of the Board of Directors.
83
LIQUIDITY RISK
OPERATIONAL RISK
Liquidity risk is the possibility of loss that the Bank may face, when the
cash inflows and cash outflows are not met fully and/or on time due to
the low level of cash or cash inflows.
The operational risk is the possibility of loss that the Bank may suffer due
to failures in internal processes, systems or human resources, or external
factors such as earthquake, fire, flood and terrorist attack.
The Bank’s policies and procedures related to the liquidity risk are in
line with the banking legislation and approved by the Bank’s Board of
Directors.
In order to keep its operations on a consistent, competitive and
improving path, the Bank abides by the principle of aligning its
operational risk policies and practices with both its overall business
targets and the latest versions of COBIT and Risk IT.
The Board of Directors has approved Risk Limits compliant with the
legal “Liquidity Adequacy Ratios” and based on the Bank’s net worth,
monitored on a weekly basis; these limits determine the acceptable
level of liquidity risk by certain maturity buckets. They are reviewed
and revised at least once a year, with respect to market conditions and
changes in the Bank’s strategies.
The Bank employs GAP analyses in order to measure and monitor the
impact of liquidity risk, which shows the current and future liquidity
needs. The Bank bases those analyses on certain maturity assumptions
approved by the Board of Directors as regards the average maturities
of assets and liabilities as well as off-balance sheet items. These
assumptions include the behavioral attributes for revolving loans
and overdraft accounts as well as demand and time deposits. These
analyses are evaluated on a weekly basis by the Bank’s Assets & Liabilities
Committee.
The Bank’s policy requires sustaining an asset structure able to satisfy
any liability in time with liquid sources and the Board of Directors
supervises the policies and procedures related to liquidity management
in an active manner.
The Bank’s liquidity risk profile is monitored and assessed by the Risk
Directors on a monthly basis. This presentation is a mandatory agenda
item at the meetings of the Board of Directors.
The functional responsibilities concerning the Bank’s processes of
generation, distribution, reporting and storage of critical information
have been separated. The information generated by the Bank is
categorized; the possible threats to each of these categories are
identified; risk analyses and assessments are conducted and inventoried.
Before and after important changes (technology, business flow, etc.)
that might impact banking processes, risk analyses and assessments
of information and processes are revised; the information inventory
is updated. The Bank creates certain control points across banking
processes and its performance is regularly monitored to ensure its
efficiency.
The Bank’s operational risk profile is monitored and assessed by the Risk
Management Department. The Risk Management Department forms
the Operational Risk Matrix to analyze anticipations of possible threats
of operational risk coming from different units of the Bank; to identify
and report the impact, probability and concentration of the said risks;
to make suggestions to the concerned units according to the resulting
requirement. The Risk Management Department presents the results
of its compliance, monitoring and assessment activities as regards Risk
Limits to the Board of Directors on a monthly basis. This presentation is a
mandatory agenda item at the meetings of the Board of Directors.
CONSOLIDATED RISK MANAGEMENT POLICIES
The Risk Management System has been configured so as to include the
subsidiaries, which are subject to consolidation. The said subsidiaries
set and implement the risk management policies, which suit in a best
manner to their structure, in accordance with the strategies, objectives
and main policies of the Risk Management System and with due
consideration of the conditions in their own fields of activity.
84
ORGANIZATION CHART OF
ŞEKERBANK T.A.Ş.
ŞEKERBANK T.A.Ş. BOARD OF DIRECTORS
GENERAL MANAGER
BOARD OF DIRECTORS
DEPARTMENT
CONSULTANTS AND
COORDINATOR
BOARD OF DIRECTORS
SECRETARIAT
CHIEF ECONOMIST
EVP
GROUP HEAD
INFORMATION
TECHNOLOGIES
SOFTWARE
DEVELOPMENT
& PROJECT
MANAGEMENT
DEPARTMENT
IT SECURITY
& QUALITY
MANAGEMENT
DEPARTMENT
TECHNOLOGY
OPERATIONS
DEPARTMENT
EVP
EVP
SUPPORT
SERVICES
FINANCIAL
INSTITUTIONS
GROUP HEAD
LOGISTICS
PROPERTY,
PUCHASING AND
CONSTRUCTION
DEPARTMENT
GROUP HEAD
FINANCIAL
INSTITUTIONS
FINANCIAL
INSTITUTIONS
DEPARTMENT
INVESTOR RELATIONS
AND STRUCTURED
FINANCE
DEPARTMENT
LEGAL ADVISER
HUMAN
RESOURCES
DEPARTMENT
TRAINING
RECRUITMENT
AND CAREER
MANAGEMENT
DEPARTMENT
GROUP HEAD
CORPORATE
COMMUNICATION
AND STRATEGY
STRATEGY AND
COORDINATION
DEPARTMENT
SUSTAINABLE
DEVELOPMENT
BANKING
DEPARTMENT
PROCESS
DEVELOPMENT
AND CUSTOMER
EXPERIENCE
DEPARTMENT
CORPORATE
COMMUNICATION
DEPARTMENT
ADVERTISING AND
MEDIA PLANNING
DEPARTMENT
TREASURY
ASSET&LIABILITY
MANAGEMENT
DEPARTMENT
CORPORATE AND
COMMERCIAL
BANKING
MARKETING
EVP
RETAIL BANKING
MARKETING
TREASURY SALES
DEPARTMENT
REGIONAL
OFFICES (11)
CORPORATE
BRANCHES (4)
CORPORATE AND
COMMERCIAL
BANKING
MARKETING
DEPARTMENT
SME BANKING
MARKETING
REGIONAL
OFFICES (11)
SMALL
ENTERPRISES
BANKING
MARKETING
DEPARTMENT
AGRICULTURAL
BANKING
MARKETING
DEPARTMENT
INDIVIDUAL
BANKING
MARKETING
DEPARTMENT
DISTRIBUTION
CHANNEL
MANAGEMENT
DEPARTMENT
CASH
MANAGEMENT
DEPARTMENT
85
RESPONSIBLE
OF INTERNAL
SYSTEMS
EVP
CORPORATE &
COMMERCIAL
CREDIT
MANAGEMENT
AND MONITORING
RETAIL CREDIT
MANAGEMENT
EVP
EVP
EVP
CREDITS LEGAL AND
ADMINISTRATIVE
FOLLOW-UP
EVP
OPERATIONS
GROUP HEAD
FINANCIAL CONTROL,
SUBSIDIARIES AND
SHAREHOLDER
RELATIONS
GROUP HEAD
LEGAL FOLLOWUP
EVP
FINANCIAL
CONTROL, BUDGET
AND STRATEGIC
PLANNING
COMMERCIAL
AND CORPORATE
CREDITS
DEPARTMENT (1)
RETAIL CREDITS
DEPARTMENT (1)
LEGAL
PROCESSES
DEPARTMENT
RESTRUCTURING
AND ANALYSIS
DEPARTMENT (1)
HEAD OFFICE
AND BRANCH
OPERATIONS
DEPARTMENT
BUDGET AND
STRATEGIC
PLANNING
DEPARTMENT
COMMERCIAL
AND CORPORATE
CREDITS
DEPARTMENT (2)
RETAIL CREDITS
DEPARTMENT (2)
LEGAL
OPERATIONS
DEPARTMENT
RESTRUCTURING
AND ANALYSIS
DEPARTMENT (2)
PAYMENT
SYSTEMS
OPERATIONS
DEPARTMENT
FINANCIAL
REPORTING
DEPARTMENT
CREDIT POLICY
DEPARTMENT
REGIONAL
CREDIT
ALLOCATION
DEPARTMENTS
(11)
AUDIT
INTERNAL AUDIT
DIVISION
TRADE FINANCE
AND TREASURY
OPERATIONS
DEPARTMENT
CREDIT
MONITORING
DEPARTMENT
* Şekerbank’s organizational structure has been changed as of February 1, 2016. New structure is depicted below.
RISK
MANAGEMENT
DEPARTMENT
INTERNAL
CONTROL AND
COMPLIANCE
DEPARTMENT
86
I. UNITS DIRECTLY REPORTING TO GENERAL MANAGER
Board Of Directors Department
Board Of Directors Secretariat
Chief Economist
Legal Advisor
Human Resources Department
Training Recruitment and Career Management Department
Treasury Asset And Liability Management Department
Treasury Sales Department
Group Head Corporate Communication And Strategy
Corporate Communication Department
Advertising And Media Planning Department
Strategy and Coordination Department
Sustainable Development Banking Department
Process Development And Customer Experience Department
Group Head Information Technologies
Software Development And Project Management Department
It Security and Quality Management Department
Technology Operations Department
1. Support Services
Property, Purchasing and Construction Department
Group Head Logistics
2. Financial Institutions
Group Head Financial Institutions
Financial Institutions Department
Investor Relations and Structured Finance Department
3. Corporate And Commercial Banking Marketing
Corporate And Commercial Banking Marketing Department
Sme Banking Marketing
Regional Offices (11)
Corporate Branches (4)
4. Retail Banking Marketing
Small Enterprises Banking Marketing Department
Agricultural Banking Marketing Department
Individual Banking Marketing Department
Distribution Channel Management Department
Cash Management Department
Regional Offices (11)
5. Commercial and Corporate Credit Management And Monitoring
Commercial and Corporate Credits Department (1)
Commercial and Corporate Credits Department (2)
Credit Policy Department
Credit Monitoring Department
6. Retail Credit Management
Retail Credits Department (1)
Retail Credits Department (2)
Regional Credit Allocation Departments (11)
7. Credit Legal And Administrative Follow-Up
Restructuring And Analysis Department (1)
Restructuring And Analysis Department (2)
Group Head Legal Follow-Up
Legal Processes Department
Legal Operation Department
8. Operations
Head Office And Branch Operations Department
Payment Systems Operations Department
Trade Finance and Treasury Operations Department
9.Group Head Financial Control, Subsidiaries and Shareholder Relations
Budged and Strategic Planning Department
Financial Reporting Department
II. UNITS DIRECTLY REPORTING TO THE BOARD MEMBER
RESPONSIBLE OF INTERNAL SYSTEMS
Internal Control and Compliance Department
Risk Management Department
10. Audit
Internal Audit Division
ŞEKERBANK T.A.Ş.
TÜRK ANONİM ŞİRKETİ
UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
WITH INDEPENDENT AUDITORS’ REPORT THEREON
(CONVENIENCE TRANSLATION OF UNCONSOLIDATED
FINANCIAL STATEMENTS AND RELATED DISCLOSURES AND
FOOTNOTES ORIGINALLY ISSUED IN TURKISH)
AKİS BAĞIMSIZ DENETİM VE SERBEST
MUHASEBECİ MALİ MÜŞAVİRLİK
ANONİM ŞİRKETİ
12 FEBRUARY 2016
THIS REPORT CONSISTS OF 1 PAGES OF INDEPENDENT AUDITORS’
REPORT AND 70 PAGES FINANCIAL STATEMENTS AND RELATED
DISCLOSURES AND FOOTNOTES.
Convenience Translation of the Independent Auditors’ Report
Originally Prepared and Issued in Turkish to English
To the Board of Directors of Şekerbank T.A.Ş.
Report on the Unconsolidated Financial Statements
We have audited the accompanying unconsolidated financial statements of Şekerbank T.A.Ş. (“the Company”) which comprise the unconsolidated statement of financial position as
at 31 December 2015, and the unconsolidated statement of income, statement of unconsolidated income and expense items accounted under shareholders’ equity, unconsolidated
statement of changes in equity and unconsolidated statement of cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other
explanatory information.
Management’s Responsibility for the Unconsolidated Financial Statements
Management is responsible for the preparation and fair presentation of these unconsolidated financial statements in accordance with the “Banking Regulation and Supervision
Agency (“BRSA”) Accounting and Reporting Legislation” which includes the “Regulation on Accounting Applications for Banks and Safeguarding of Documents” published in the
Official Gazette No.26333 dated 1 November 2006, and other regulations on accounting records of Banks published by Banking Regulation and Supervision Board and circulars and
interpretations published by BRSA and requirements of Turkish Accounting Standards for the matters not regulated by the aforementioned legislations, and for such internal control
as management determines is necessary to enable the preparation of unconsolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these unconsolidated financial statements based on our audit. We conducted our audit in accordance the “Regulation on Independent
Audit of the Banks” published in the Official Gazette No.29314 dated 2 April 2015 by BRSA and Independent Standards on Auditing which is a component of the Turkish Auditing
Standards published by the Public Oversight Accounting and Auditing Standards Authority (“POA”). Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the unconsolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the unconsolidated financial statements. The procedures selected depend
on our judgment, including the assessment of the risks of material misstatement of the unconsolidated financial statements, whether due to fraud or error. In making those risk
assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the unconsolidated financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained during our audit is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the unconsolidated financial statements present fairly, in all material respects, the unconsolidated financial position of the Şekerbank T.A.Ş. as at 31 December 2015, and
its financial performance and its cash flows for the year then ended in accordance with BRSA Accounting and Reporting Legislation.
Report on Other Legal and Regulatory Requirements
1) Pursuant to the fourth paragraph of Article 402 of the Turkish Commercial Code (“TCC”); no significant matter has come to our attention that causes us to believe that for the period
1 January - 31 December 2015, the Bank’s bookkeeping activities are not in compliance with TCC and provisions of the Bank’s articles of association in relation to financial reporting.
2) Pursuant to the fourth paragraph of Article 402 of the TCC; the Board of Directors provided us the necessary explanations and required documents in connection with the audit.
Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.
Orhan Akova, SMMM
Partner
12 February 2016
Istanbul, Türkiye
THE UNCONSOLIDATED FINANCIAL REPORT OF
ŞEKERBANK T.A.Ş.
Address
:
Emniyet Evleri Mah. Eski Büyükdere Cad. No:1/1A
34415 Kağıthane / Istanbul
Telephone
:
(212) 319 70 00
Fax :
(212) 319 73 79
Web Site
:
www.sekerbank.com.tr
E-mail Address :
malikontrol@sekerbank.com.tr
The unconsolidated financial report designed by the Banking Regulation and Supervision Agency in line with Communiqué on Financial Statements to be Publicly
Announced and the Related Policies and Disclosures consists of the sections listed below:
• GENERAL INFORMATION ABOUT THE BANK
• UNCONSOLIDATED FINANCIAL STATEMENTS OF THE BANK
• EXPLANATIONS ON THE CORRESPONDING ACCOUNTING POLICIES APPLIED IN THE RELATED PERIOD
• INFORMATION ON FINANCIAL STRUCTURE OF THE BANK
• EXPLANATORY DISCLOSURES AND FOOTNOTES ON UNCONSOLIDATED FINANCIAL STATEMENTS
• OTHER EXPLANATIONS AND FOOTNOTES
• INDEPENDENT AUDITORS’ REPORT
The unconsolidated financial statements and the explanatory footnotes and disclosures, unless otherwise indicated, are prepared in thousands of Turkish Lira, in
accordance with the Communiqué on Banks’ Accounting Practice and Maintaining Documents, Turkish Accounting Standards, Turkish Financial Reporting Standards,
related communiqués and the Banks’ records, have been independently audited and presented as attached.
The 31 December 2015 financial tables are audited and they do not include any false explanation in material subjects and absences that may result in misleading
statements and fairly reflect the Bank’s financial position, the risks faced and uncertainty
Viktor ROMANYUK
Chairman of The Board of Directors
Halit Haydar YILDIZ
General Manager
Orhan ULUYOL
Group Head
Information related to responsible personnel for the questions about financial statements:
Name-Surname / Title :
Telephone No
:
Fax No
:
Oya SARI / Investor Relations and Structured Finance Manager
(212) 319 71 58
(212) 319 71 62
Murat ISHMUKHAMEDOV
INDEX
I.
II.
III.
IV.
V.
VI.
VII.
SECTION ONE
General Information
Bank’s Incorporation Date, Beginning Statue, Changes in the Existing Statue
Explanations Regarding Bank’s Shareholding Structure, Shareholders Holding Directly or Indirectly, Collectively or Individually, the Managing and Controlling Power and Changes in Current Year,
if any and Explanations on the Controlling Group of the Bank Explanations Regarding the Chairman and the Members of Board of Directors, Audit Committee, General Manager and Executive Vice Presidents and Their Shares in the Bank
Information About the Person and Institutions That Have Qualified Shares Summary on the Bank’s Functions and Areas of Activity Differences Between the Communique on Preparation of Consolidated Financial Statements of Banks and Turkish Accounting Standards and Short Explanation About the Institutions
Subject To Line-By-Line Method or Proportional Consolidation And Institutions Which Are Deducted From Equity Or Not Included In These Three Methods
The Existing or Potential, Actual or Legal Obstacles on the Transfer of Shareholders’ Equity Between the Parent Bank and its Subsidiaries or the Reimbursement of Liabilities
Page Number
92
92
92
93
93
93
93
SECTION TWO
Unconsolidated Financial Statements
I.
II.
III.
IV.
V.
VI.
VII.
Balance Sheet (Statement of Financial Position)
Statement of Off Balance Sheet Contingencies and Commitments
Statement of Income
Statement of Gains and Losses Recognised in Equity
Statement of Changes in Shareholders’ Equity
Statement of Cash Flow
Profit Distribution Table
94
96
97
98
99
100
101
SECTION THREE
Accounting Principles
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 Explanations on Usage Strategy of Financial Assets and Foreign Currency Transactions Explanations on Foreign Currency Transactions
Explanations on Associates and Subsidiaries Explanations on Forward and Option Contracts and Derivative Instruments Explanations on Interest Income and Expenses Explanations on Fees and Commission Income and Expenses Explanations on Financial Assets Explanations on Impairment of Financial Assets
Explanations on Offsetting of Financial Assets and Liabilities
Explanations on Sales and Repurchase Agreements and Lending of Securities Explanations on Assets Held of Sale and Discontinued Operations
Explanations on Goodwill and Other Intangible Assets
Explanations on Tangible Fixed Assets
Explanations on Leasing Transactions
Explanations on Provisions and Contingent Liabilities
Explanations on Liabilities Regarding Employee Benefits
Explanations on Taxation
Additional Explanations on Borrowings
Explanations on Share Certificates
Explanations on Acceptances
Explanations on Government Incentives
Explanations on Segment Reporting
Explanations on Other Matters
102
102
102
102
102
102
102
103
105
105
105
105
105
106
106
106
106
107
108
108
108
108
109
109
SECTION FOUR
Information on Financial Structure
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX. X.
XI.
XII.
XIII.
XIV.
Explanations Related to the Capital Adequacy Standard Ratio
Explanations Related to Credit Risk
Explanations Related to Market Risk
Explanations Related to Operational Risk
Explanations Related to Currency Risk
Explanations Related to Interest Rate Risk
Explanations Related to Stock Position Risk Due from Banking Book
Explanations Related to Liquidity Risk Management and Liquidity Coverage Ratio
Explanations Related to Securitization Position Risk
Explanations Related to Credit Risk Mitigation Techniques
Explanations Related to Risk Management Objective and Policies
Explanations Related to Leverage Ratio
Explanations Related to Presentation of Financial Assets and Liabilities at Fair Value
Explanations Related to Transactions Made on Behalf of Others and Transactions Based on Trust
109
114
121
123
123
125
128
129
133
133
134
135
135
136
SECTION FIVE
Explanations and Disclosures on Unconsolidated Financial Statements
I.
II.
III.
IV.
V.
VI.
VII.
VIII. IX.
Explanations Related to the Assets
Explanations Related to the Liabilities
Explanations Related to the Off-Balance Sheet Contingencies and Commitments Explanations Related to the Income Statement
Explanations Related to Statement of Shareholders’ Equity Movement
Explanations Related to Statement of Cash Flows
Explanations on the Risk Group of the Bank
Explanations and Notes Related to Subsequent Events
Explanations on the Bank’s Domestic Branches, Agencies and Branches Abroad and Off-shore Branches
137
147
153
157
160
160
160
162
162
SECTION SIX
Other Explanations
I.
Explanations on the Operations of the Bank
162
SECTION SEVEN
Independent Auditor’s Report
I.
II.
Explanations on the Independent Auditor’s Report
Other Footnotes and Explanations Prepared by the Independent Auditors
162
162
92
ŞEKERBANK T.A.Ş.
NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
(AMOUNTS EXPRESSED IN THOUSANDS OF TURKISH LIRA (TRL) UNLESS OTHERWISE STATED.)
SECTION ONE
GENERAL INFORMATION
III. Explanations Regarding the Chairman and the Members of Board of Directors,
Audit Committee, General Manager and Executive Vice Presidents and Their
Shares in the Bank
I. Bank’s Incorporation Date, Beginning Statue, Changes in the Existing Statue
Şekerbank T.A.Ş. (‘the Bank’) was founded in 1953 as a Turkish bank with 14
partners in Eskişehir and started its operations under Pancar Kooperatifleri
Bankası A.Ş. in Eskişehir and changed the name to Şekerbank T.A.Ş. by moving
headquarters to Ankara in 1956. 15 % of the Bank shares were offered to public
in 1997 and currently 34.19 % of the Bank shares are publicly traded. The Bank’s
one of the main shareholders, Şekerbank T.A.Ş. Personeli Munzam Sosyal Güvenlik
ve Yardımlaşma Sandığı Vakfı, gives its members additional social rights and
retirement guarantees in the social security system. The Bank has affiliates and
subsidiaries in the finance and tourism sectors.
Title
Chairman of the
Board of Directors
Name and Surname
Dr.Hasan Basri Göktan
Responsibility Areas
Chairman & Executive Board Member,
Credit Committee, Corporate
Governance Committee, Remuneration
Committee
General Manager
Halit Haydar Yıldız (***)
Board Member, General Manager, Credit
Committee
Members of the
Board of Directors
Vice-Chairman, Remuneration
Committee, Audit Committee
Emin Erdem
Executive Board Member, Credit
Committee
Erdal Batmaz
Committee
Halil Can Yeşilada
Corporate Governance Committee,
Internal Systems
Üzeyir Baysal
Independent Director, Remuneration
Committee
Khosrow Kashani Zamani Corporate Governance Committee
Murat Ishmukhamedov (*) Corporate Governance Committee, Audit
Committee
Daniyar Amanov
-
Executive Vice
Presidents
Ali Güray Demir
Business line of the Bank covers extending all kinds of cash and non-cash loans
in Turkish Lira and foreign currency and carrying out capital market transactions,
accepting deposits in TRL and FC and providing other banking services.
II. Explanations Regarding Bank’s Shareholding Structure, Shareholders Holding
Directly or Indirectly, Collectively or Individually, the Managing and Controlling
Power and Changes in Current Year, if any and Explanations on the Controlling
Group of the Bank
Amounts of
Share
Share (%)
Paid in
Capital
Unpaid
Capital
Şekerbank T.A.Ş. Personeli
Munzam Sosyal Güvenlik ve
Yardımlaşma Sandığı Vakfı
410,389
35.4395
410,389
-
Samruk-Kazyna, the National
Wel-fare Fund of Kazakhstan
224,353
19.3742
224,353
-
BTA Securities JSC
126,295
10.9063
126,295
-
Public offerings
395,954
34.1928
395,954
-
Name of Shareholders
Others
Total
1,009
0.0872
1,009
-
1,158,000
100.0000
1,158,000
-
Victor Romanyuk (*)
Çetin Aydın
Nejat Bilginer (**)
Nihat Büyükbozkoyun
Selim Güray Çelik
Gökhan Ertürk
Ramazan Karademir (**)
Orhan Karakaş
Fatin Rüştü Karakaş
Salih Zeki Önder
Feyza Önen (**)
Hüseyin Serdar
Ahmet İlerigelen
Credit Legal and Administrative Follow
-up
Audit
Human Resources
Operations
Financial Control, Budgeting and
Strategic Planning, Corporate
Governance Committee
Retail Banking Marketing
Internal Control and Risk Management
Marketing
Retail Credit Management
Treasury
Support Services
Corporate and Commercial Credit
Management and Monitoring
(*)
According to Communiqué Regarding Determination and Enforcement of Corporate
Governance Principles of CMB, Serial: IV No: 56, Audit Committee members of the banks are
accepted as independent members of the Board of Directors. Murat Ishmukhamedov and
Victor Romanyuk are Audit Committee Members of the Bank.
(**)
Executive Vice Presidents Nejat Bilginer and Feyza Önen resigned as of 1 February 2016;
Ramazan Karademir retired from his duties as of 1 February 2016.
(***)
On 8 February 2016, the Bank announced that according to the Board of Directors decision
Servet Taze will be appointed as General Manager following the approval of BRSA and General
Manager Halit Haydar Yıldız will be appointed as the member of Board of Director.
93
FINANCIAL STATAMENTS
ŞEKERBANK T.A.Ş.
SECTION TWO
The Chairman of the Board of Directors Dr. Hasan Basri Göktan has total shares
of 0.05 % in nominal, amounting to TRL 577 Thousand, Khosrow Kashani Zamani
who is the Board of Directors Member has total shares of 0.013 % in nominal,
amounting to TRL 148 Thousand which they obtained from public offering.
IV. Information About the Persons and Institutions That Have Qualified Shares in
the Bank:
Name/ Commercial Name
Amounts of
Share TRL
Thousand
410,389
Well-fare Fund of Kazakhstan
BTA Securities JSC
Paid in
Capital TRL
Share (%) Thousand
Unpaid
Capital
35.4395
410,389
-
224,353
19.3742
224,353
-
126,295
10.9063
126,295
-
V. Summary on the Bank’s Functions and Areas of Activity
Business line of the Bank covers extending all kinds of cash and non-cash loans
in Turkish Lira and foreign currency and carrying out capital market transactions,
accepting deposits in TRL and FC and providing other banking services. As of 31
December 2015, the Bank has 301 domestic branches (31 December 2014 – 312
domestic branches).
VI. Differences Between The Communique On Preparation Of Consolidated
Financial Statements Of Banks And Turkish Accounting Standards And Short
Explanatıon About The Institutions Subject To Line-By-Line Method Or
Proportional Consolidation And Institutions Which Are Deducted From Equity Or
Not Included In These Three Methods
The Bank’s subsidiaries Şekerbank (Kıbrıs) Ltd., Şeker Finansal Kiralama A.Ş.,
Şekerbank International Banking Unit Ltd., Şeker Yatırım Menkul Değerler A.Ş.,
Şeker Faktoring A.Ş., Şeker Mortgage Finansman A.Ş. and Zahlungsdienste GmbH
der Şekerbank T.A.Ş. are included in the scope of consolidation by line-by-line
method.
Seltur Turistik İşletmeler Yatırım A.Ş. is not consolidated in the financial statements
and is recorded at cost since the Bank has no control and it is not a financial
subsidiary.
VII. The Existing Or Potential, Actual Or Legal Obstacles On The Transfer Of
Shareholders' Equity Between The Parent Bank And its Subsidiaries Or The
Reimbursement Of Liabilities
There is no transfer of the shareholder’s equity between the Parent Bank and its
subsidiaries. Dividend distribution from shareholders equity is done according to
related regulations. There is no existing or potential, actual or legal obstacle to the
payback of liabilities between the Parent Bank and its subsidiaries.
I. Balance Sheet (Statement of Financial Position)
II. Statement of Off Balance Sheet Contingencies and Commitments
III. Statement of Income
IV. Statement of Profit and Loss Accounted for Under Equity
V. Statement of Changes in Shareholders’ Equity
VI. Statement of Cash Flow
VII. Profit Distribution Table
94
ŞEKERBANK T.A.Ş.
UNCONSOLIDATED BALANCE SHEET
(STATEMENT OF FINANCIAL POSITION)
I.
II.
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.2.3
2.2.4
III.
IV.
4.1
4.2
4.3
V.
5.1
5.2
5.3
VI.
6.1
6.1.1
6.1.2
6.1.3
6.2
6.3
VII.
VIII.
8.1
8.2
IX.
9.1
9.2
9.2.1
9.2.2
X.
10.1
10.2
XI.
11.1
11.2
11.2.1
11.2.2
XII.
12.1
12.2
12.3
12.4
XIII.
13.1
13.2
13.3
XIV.
XV.
15.1
15.2
XVI.
XVII.
17.1
17.2
XVIII.
18.1
18.2
XIX.
ASSETS
CASH AND BALANCES WITH THE CENTRAL BANK
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (Net)
Held for trading financial assets
Public sector debt securities
Share certificates
Derivative financial assets held for trading
Other marketable securities
Financial assets at fair value through profit and loss
Share certificates
Loans
BANKS
MONEY MARKET PLACEMENTS
Interbank money market placements
Istanbul Stock Exchange money market placements
Receivables from reverse repurchase agreements
FINANCIAL ASSETS AVAILABLE FOR SALE (Net)
Share certificates
LOANS AND RECEIVABLES
Loans and Receivables
Loans to Risk Group of the Bank
Other
Non-performing loans
Specific provisions (-)
FACTORING RECEIVABLES
HELD TO MATURITY INVESTMENTS (Net)
INVESTMENTS IN ASSOCIATES (Net)
Accounted for under equity method
Unconsolidated associates
Financial investments
Non-financial investments
INVESTMENTS IN SUBSIDIARIES (Net)
Unconsolidated financial subsidiaries
Unconsolidated non-financial subsidiaries
ENTITIES UNDER COMMON CONTROL (JOINT VENT.) (Net)
Consolidated under equity method
Unconsolidated
Financial subsidiaries
Non-financial subsidiaries
FINANCE LEASE RECEIVABLES (Net)
Finance lease receivables
Operating lease receivables
Other
Unearned income ( - )
DERIVATIVE FINANCIAL ASSETS FOR HEDGING PURPOSES
Fair value hedge
Cash flow hedge
Hedge of net investment risks in foreign operations
TANGIBLE ASSETS (Net)
INTANGIBLE ASSETS (Net)
Goodwill
Other
INVESTMENT PROPERTY (Net)
TAX ASSET
Current tax asset
Deferred tax asset
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net)
Held for sale
Discontinued operations
OTHER ASSETS
TOTAL ASSETS
Note Ref.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
TRL
547.639
106.798
95.141
2.083
92.979
79
11.657
11.657
17.243
1.723.768
1.716.532
7.236
14.152.796
13.688.057
58.042
13.630.015
1.009.425
(544.686)
1.267.890
1.267.890
4.140
4.140
4.140
107.384
107.384
852.442
98.967
98.967
123.300
123.300
232.244
19.234.611
TRL THOUSAND
Audited
Current Period
31/12/15
FC
Total
TRL
2.233.537
2.781.176
242.123
53.093
159.891
132.872
53.093
148.234
110.643
7.808
9.891
1.465
45.285
138.264
109.098
79
80
11.657
22.229
11.657
22.229
69.363
86.606
20.104
73.205
73.205
1.723.768
1.055.934
1.716.532
1.049.210
7.236
6.724
2.573.112
16.725.908
12.768.338
2.573.112
16.261.169
12.447.948
366.532
424.574
97.914
2.206.580
15.836.595
12.350.034
1.009.425
838.130
(544.686)
(517.740)
413
1.268.303
1.364.520
413
1.268.303
1.364.520
4.140
4.140
4.140
4.140
4.140
4.140
7.668
115.052
103.384
7.668
115.052
103.384
852.442
916.452
98.967
72.313
98.967
72.313
123.300
123.300
244.169
476.413
156.719
5.181.355
The accompanying notes are an integral part of these financial statements
24.415.966
16.910.104
Audited
Prior Period
31/12/14
FC
Total
2.059.987
2.302.110
46.270
179.142
46.270
156.913
5.207
6.672
41.063
150.161
80
22.229
22.229
104.525
124.629
73.205
73.205
1.055.934
1.049.210
6.724
1.864.512
14.632.850
1.864.512
14.312.460
303.867
401.781
1.560.645
13.910.679
838.130
(517.740)
329
1.364.849
329
1.364.849
4.140
4.140
4.140
7.668
111.052
7.668
111.052
916.452
72.313
72.313
193.893
350.612
4.277.184
21.187.288
95
ŞEKERBANK T.A.Ş.
UNCONSOLIDATED BALANCE SHEET
(STATEMENT OF FINANCIAL POSITION)
I.
1.1
1.2
II.
III.
IV.
4.1
4.2
4.3
V.
5.1
5.2
5.3
VI.
6.1
6.2
VII.
VIII.
IX.
X.
10.1
10.2
10.3
10.4
XI.
11.1
11.2
11.3
XII.
12.1
12.2
12.3
12.4
12.5
XIII.
13.1
13.2
XIV.
14.1
14.2
XV.
XVI.
16.1
16.2
16.2.1
16.2.2
16.2.3
16.2.4
16.2.5
16.2.6
16.2.7
16.2.8
16.2.9
16.2.10
16.3
16.3.1
16.3.2
16.3.3
16.3.4
16.4
16.4.1
16.4.2
LIABILITIES
DEPOSITS
Deposits from Risk Group of the Bank
Other
DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING
FUNDS BORROWED
MONEY MARKET BALANCES
Interbank money market takings
Istanbul Stock Exchange money market takings
Funds provided under repurchase agreements
MARKETABLE SECURITIES ISSUED (Net)
Bills
Asset backed securities
Bonds
FUNDS
Borrower funds
Other
SUNDRY CREDITORS
OTHER LIABILITIES
FACTORING PAYABLES
FINANCE LEASE PAYABLES
Finance lease payables
Operating lease payables
Other
Deferred finance lease expenses ( - )
DERIVATIVE FINANCIAL LIABILITIES FOR HEDGING PURPOSES
Fair value hedge
Cash flow hedge
Hedge of net investment in foreign operations
PROVISIONS
General loan loss provisions
Restructuring provisions
Reserve for employee benefits
Insurance technical provisions (Net)
Other provisions
TAX LIABILITY
Current tax liability
Deferred tax liability
PAYABLES RELATED TO ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net)
Held for sale
SUBORDINATED LOANS
SHAREHOLDERS' EQUITY
Paid-in capital
Supplementary capital
Share premium
Share cancellation profits
Marketable securities value increase fund
Tangible assets revaluation differences
Intangible assets revaluation differences
Investment property revaluation differences
Bonus shares obtained from associates, subsidiaries and jointly controlled entities (Joint Vent.)
Hedging funds (Effective portion)
Accumulated valuation differences from assets held for sale and from discontinued operations
Other capital reserves
Profit reserves
Legal reserves
Status reserves
Extraordinary reserves
Other profit reserves
Profit or loss
Prior years’ income/ (loss)
Current year income/ (loss)
TOTAL LIABILITIES AND EQUITY
Note Ref.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(13)
(17)
(14)
(15)
TRL
9.119.783
67.243
9.052.540
103.938
121.076
2.012.699
144.043
1.868.656
1.189.806
425.588
764.218
131
131
95.536
201.214
11.132
13.563
(2.431)
370.194
177.980
57.339
134.875
41.944
34.368
7.576
2.526.942
1.158.000
171.370
1.278
(70.239)
156.528
82.046
1.757
1.090.958
92.856
997.434
668
106.614
3.965
102.649
15.794.395
TRL THOUSAND
Audited
Current Period
31/12/15
FC
Total
TRL
5.747.850
14.867.633
7.961.745
152.556
219.799
98.630
5.595.294
14.647.834
7.863.115
35.662
139.600
40.402
2.099.157
2.220.233
69.042
2.012.699
1.440.582
144.043
1.868.656
1.440.582
1.189.806
1.137.037
425.588
494.389
764.218
642.648
131
754
131
754
230.193
325.729
262.058
4.975
206.189
194.049
464
11.596
1.798
483
14.046
1.920
(19)
(2.450)
(122)
5.049
375.243
323.909
177.980
163.033
57.339
60.717
5.049
139.924
100.159
41.944
91.583
34.368
61.960
7.576
29.623
498.221
498.221
2.526.942
2.391.813
1.158.000
1.087.187
171.370
197.193
1.278
4.263
(70.239)
(9.249)
156.528
204.588
82.046
1.757
(2.409)
1.090.958
883.400
92.856
82.394
997.434
800.338
668
668
106.614
224.033
3.965
64
102.649
223.969
8.621.571
24.415.966
13.914.772
Audited
Prior Period
31/12/14
FC
Total
5.576.863
13.538.608
78.219
176.849
5.498.644
13.361.759
56.839
97.241
1.086.786
1.155.828
1.440.582
1.440.582
1.137.037
494.389
642.648
754
754
103.743
365.801
6.456
200.505
4.843
6.641
4.968
6.888
(125)
(247)
315
324.224
163.033
60.717
315
100.474
91.583
61.960
29.623
436.671
436.671
2.391.813
1.087.187
197.193
4.263
(9.249)
204.588
(2.409)
883.400
82.394
800.338
668
224.033
64
223.969
7.272.516
21.187.288
96
ŞEKERBANK T.A.Ş.
UNCONSOLIDATED OFF-BALANCE SHEET
CONTINGENCIES AND COMMITMENTS
TRL THOUSAND
Note Ref.
A. OFF BALANCE SHEET CONTINGENCIES AND COMMITMENTS (I+II+III)
I.
GUARANTEES AND SURETIES
1.1.
Letters of guarantee
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
1.2.
Bank loans
1.2.1.
Import letter of acceptance
1.2.2.
Other bank acceptances
1.3.
Letters of credit
1.3.1.
Documentary letters of credit
1.3.2.
Other letters of credit
1.4.
Prefinancing given as guarantee
1.5.
Endorsements
1.5.1.
Endorsements to the Central Bank of Turkey
1.5.2.
Other endorsements
1.6.
Securities issue purchase guarantees
1.7.
Factoring guarantees
1.8.
Other guarantees
1.9.
Other sureties
II.
COMMITMENTS
2.1.
Irrevocable commitments
2.1.1.
Forward asset purchase commitments
2.1.2.
Forward deposit purchase and sales commitments
2.1.3.
Share capital commitment to associates and subsidiaries
2.1.4.
Loan granting commitments
2.1.5.
Securities underwriting commitments
2.1.6.
Commitments for reserve deposit requirements
2.1.7.
Payment commitment for checks
2.1.8.
Tax and fund liabilities from export commitments
2.1.9.
Commitments for credit card expenditure limits
2.1.10.
Commitments for promotions related with credit cards and banking activities
2.1.11.
Receivables from short sale commitments
2.1.12.
Payables for short sale commitments
2.1.13.
Other irrevocable commitments
2.2.
Revocable commitments
2.2.1.
Revocable loan granting commitments
2.2.2.
Other revocable commitments
III.
DERIVATIVE FINANCIAL INSTRUMENTS
3.1
Derivative financial instruments for hedging purposes
3.1.1
Fair value hedge
3.1.2
Cash flow hedge
3.1.3
3.2
Held for trading transactions
3.2.1
Forward foreign currency buy/sell transactions
3.2.1.1
Forward foreign currency transactions-buy
3.2.1.2
Forward foreign currency transactions-sell
3.2.2
Swap transactions related to f.c. and interest rates
3.2.2.1
Foreign currency swap-buy
3.2.2.2
Foreign currency swap-sell
3.2.2.3
Interest rate swaps-buy
3.2.2.4
Interest rate swaps-sell
3.2.3
Foreign currency, interest rate and securities options
3.2.3.1
Foreign currency options-buy
3.2.3.2
Foreign currency options-sell
3.2.3.3
Interest rate options-buy
3.2.3.4
Interest rate options-sell
3.2.3.5
Securities options-buy
3.2.3.6
Securities options-sell
3.2.4
Foreign currency futures
3.2.4.1
Foreign currency futures-buy
3.2.4.2
Foreign currency futures-sell
3.2.5
Interest rate futures
3.2.5.1
Interest rate futures-buy
3.2.5.2
Interest rate futures-sell
3.2.6
Other
B. CUSTODY AND PLEDGED ITEMS (IV+V+VI)
IV.
ITEMS HELD IN CUSTODY
4.1.
Assets under management
4.2.
Investment securities held in custody
4.3.
Checks received for collection
4.4.
Commercial notes received for collection
4.5.
Other assets received for collection
4.6.
Assets received for public offering
4.7.
Other items under custody
4.8.
Custodians
V.
PLEDGED ITEMS
5.1.
Marketable securities
5.2.
Guarantee notes
5.3.
Commodity
5.4.
Warranty
5.5.
Properties
5.6.
Other pledged items
5.7.
Pledged items-depository
VI.
ACCEPTED INDEPENDENT GUARANTEES AND WARRANTIES
TOTAL OFF BALANCE SHEET ACCOUNTS (A+B)
(1)
(1)
(3)
(2)
TRL
10.552.409
3.773.631
3.743.483
126.247
3.617.236
21.092
12.360
8.732
9.056
2.308.339
2.044.140
55.286
743.330
640.840
5.826
597.580
1.278
264.199
264.199
4.470.439
4.470.439
299.782
149.177
150.605
4.099.262
814.950
3.284.312
71.395
44.639
26.756
328.843.171
2.270.203
175.816
2.031.893
51.478
9.864
1.151
1
326.539.344
75.742.997
21.604.874
227.699.581
1.491.892
33.624
339.395.580
Audited
Current Period
31/12/15
FC
10.463.584
1.989.150
1.028.734
9.851
1.018.883
377.736
377.736
488.906
488.906
93.774
88.539
88.539
83.896
4.643
8.385.895
8.385.895
301.306
151.618
149.688
6.919.465
4.846.502
2.072.963
75.289
28.093
47.196
1.089.835
115.082.527
837.929
51.623
138.417
10.797
549.529
87.563
114.243.804
312
19.544.880
4.296.281
90.374.442
27.889
794
125.546.111
Total
21.015.993
5.762.781
4.772.217
136.098
4.636.119
398.828
390.096
8.732
488.906
488.906
102.830
2.396.878
2.132.679
139.182
747.973
640.840
5.826
597.580
1.278
264.199
264.199
12.856.334
12.856.334
601.088
300.795
300.293
11.018.727
5.661.452
5.357.275
146.684
72.732
73.952
1.089.835
443.925.698
3.108.132
227.439
2.170.310
62.275
559.393
88.714
1
440.783.148
312
95.287.877
25.901.155
318.074.023
1.519.781
34.418
TRL
10.124.142
3.724.770
3.708.350
104.474
3.603.876
7.962
75
7.887
8.458
2.092.413
1.788.592
40.178
569.330
581.746
6.171
589.246
1.921
303.821
303.821
4.306.959
4.306.959
415.838
94.185
321.653
3.832.068
1.016.040
2.810.028
3.000
3.000
59.053
39.803
19.250
290.954.113
2.416.373
340.486
2.009.670
55.864
9.442
910
1
288.507.890
343
65.342.278
18.943.265
202.765.163
1.456.841
29.850
464.941.691
301.078.255
Audited
Prior Period
31/12/14
FC
10.535.829
1.866.916
1.014.070
13.109
1.000.961
275.515
275.515
467.274
467.274
110.057
95.441
95.441
91.359
4.082
8.573.472
8.573.472
405.170
316.398
88.772
7.160.144
4.595.167
2.564.977
59.998
18.354
41.644
948.160
92.524.954
851.047
25.356
193.477
5.690
556.694
69.830
91.672.529
2.418
15.598.031
2.804.177
73.234.903
33.000
1.378
103.060.783
Total
20.659.971
5.591.686
4.722.420
117.583
4.604.837
283.477
275.590
7.887
467.274
467.274
118.515
2.187.854
1.884.033
131.537
573.412
581.746
6.171
589.246
1.921
303.821
303.821
12.880.431
12.880.431
821.008
410.583
410.425
10.992.212
5.611.207
5.375.005
3.000
3.000
119.051
58.157
60.894
948.160
383.479.067
3.267.420
365.842
2.203.147
61.554
566.136
70.740
1
380.180.419
2.761
80.940.309
21.747.442
276.000.066
1.489.841
31.228
404.139.038
97
ŞEKERBANK T.A.Ş.
UNCONSOLIDATED STATEMENT OF INCOME
TRL THOUSAND
I.
1.1
1.2
1.3
1.4
1.5
1.5.1
1.5.2
1.5.3
1.5.4
1.6
1.7
II.
2.1
2.2
2.3
2.4
2.5
III.
IV.
4.1
4.1.1
4.1.2
4.2
4.2.1
4.2.2
V.
VI.
6.1
6.2
6.3
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.
XVI.
16.1
16.2
XVII.
XVIII.
18.1
18.2
18.3
XIX.
19.1
19.2
19.3
XX.
XXI.
21.1
21.2
XXII.
XXIII.
INCOME STATEMENT
INTEREST INCOME
Interest on loans
Interest received from reserve deposits
Interest received from banks
Interest received from money market placements
Interest received from marketable securities portfolio
Held-for-trading financial assets
Available-for-sale financial assets
Investments held-to-maturity
Finance lease income
Other interest income
INTEREST EXPENSE
Interest on funds borrowed
Interest on money market borrowings
Interest on securities issued
Other interest expense
NET INTEREST INCOME (I - II)
NET FEES AND COMMISSIONS INCOME
Fees and commissions received
Non-cash loans
Other
Fees and commissions paid
Non-cash loans
Other
DIVIDEND INCOME
NET TRADING INCOME/LOSSES (NET)
Capital Market Trading gains/ (losses)
Derivative Instrument gains/(loses)
Foreign exchange gains/ (losses)
OTHER OPERATING INCOME
NET OPERATING INCOME (III+IV+V+VI+VII)
PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-)
OTHER OPERATING EXPENSES (-)
NET OPERATING INCOME/(LOSS) (VIII-IX-X)
AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER
GAIN / (LOSS) ON EQUITY METHOD
GAIN / (LOSS) ON NET MONETARY POSITION
PROFIT/(LOSS) FROM CONTINUED OPERATIONS BEFORE TAXES (XI+…+XIV)
TAX PROVISION FOR CONTINUED OPERATIONS (±)
Provision for current income taxes
Provision for deferred taxes
NET PROFIT/(LOSS) FROM CONTINUED OPERATIONS (XV±XVI)
INCOME ON DISCONTINUED OPERATIONS
Income on assets held for sale
Income on sale of associates, subsidiaries and jointly controlled entities (Joint vent.)
Income on other discontinued operations
LOSS FROM DISCONTINUED OPERATIONS (-)
Loss from assets held for sale
Loss on sale of associates, subsidiaries and jointly controlled entities (Joint vent.)
Loss from other discontinued operations
PROFIT / (LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII-XIX)
TAX PROVISION FOR DISCONTINUED OPERATIONS (±)
NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI)
NET PROFIT/LOSS (XVII+XXII)
Earnings per share
"Note
Ref."
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(8)
(9)
(10)
(11)
Audited
Current Period
01.01.2015 - 31.12.2015
2.283.308
2.035.110
7.722
2.367
1.496
235.665
435
119.324
115.906
948
1.226.923
899.019
69.884
145.217
90.720
22.083
1.056.385
285.916
341.302
63.536
277.766
55.386
55.386
7.350
(218.569)
10.376
(86.553)
(142.392)
237.917
1.368.999
431.131
852.622
85.246
85.246
17.403
17.403
102.649
102.649
0,090
Audited
Prior Period
01.01.2014 - 31.12.2014
2.099.702
1.880.497
485
2.656
3.388
210.943
543
71.205
139.195
1.733
1.121.722
860.101
48.842
97.363
104.347
11.069
977.980
245.691
295.362
68.406
226.956
49.671
49.671
1.266
(34.131)
45.834
(179.792)
99.827
186.108
1.376.914
296.117
800.096
280.701
280.701
(56.732)
(71.456)
14.724
223.969
223.969
0,201
Change in fair value of marketable securities (Transfer to Profit/Loss)
Reclassification and transfer of derivatives accounted for cash flow hedge purposes to Income Statement
Transfer of hedge of net investments in foreign operations to Income Statement
Other
Total Profit/Loss accounted for the period (X±XI)
11.1
11.2
11.3
11.4
XII.
Profit/Loss
84.073
96.027
-
-
6.622
102.649
(18.576)
XI.
-
-
4.644
The effect of corrections of errors and changes in accounting policies
VII.
Total Net Profit/Loss accounted under equity (I+II+…+IX)
Profit/Loss from derivative financial instruments for hedge of net investment in foreign operations (Effective portion of fair
value differences)
VI.
-
Deferred tax of valuation differences
Profit/Loss from derivative financial instruments for cash flow hedge purposes (Effective portion of fair value differences)
V.
-
-
X.
Currency translation differences
IV.
IX.
III.
47.810
(76.238)
5.208
II.
244.851
196.598
-
-
27.371
223.969
20.882
(5.220)
(3.326)
-
-
-
-
-
34.643
(5.215)
Audited
Prior Period
01.01.2014 31.12.2014
Current Period
01.01.2015 31.12.2015
TRL THOUSAND
Audited
VIII. Other profit loss items accounted under equity due to TAS
Additions to marketable securities revaluation differences for available for sale financial assets
I.
STATEMENT OF PROFIT AND LOSS ACCOUNTED FOR UNDER EQUITY
STATEMENT OF UNCONSOLIDATED GAINS AND
LOSSES RECOGNISED IN EQUITY
ŞEKERBANK T.A.Ş.
98
I.
VIII.
IX.
X.
XI.
XII.
12.1
12.2
XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
18.1
18.2
18.3
II.
III.
IV.
4.1
4.2
V.
VI.
VII.
Closing Balance (I+II+III+…+XVI+XVII+XVIII)
Changes in period
Increase/Decrease related to merger
Marketable securities valuation differences
Hedging Funds (Effective Portion)
Cash-flow hedge
Bonus shares obtained from associates, subsidiaries and
jointly controlled entities (Joint vent.)
Foreign exchange differences
The disposal of assets
The reclassification of assets
The effect of change in associate’s equity
Capital increase
Cash
Internal sources
Share premium
Inflation adjustment to paid-in capital
Other
Period net income/(loss)
Profit distribution
Dividends distributed
Transfers to reserves
Other
Audited
CURRENT PERIOD
01.01.2015 - 31.12.2015
Prior period balance
VIII.
IX.
X.
XI.
XII.
12.1
12.2
XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
18.1
18.2
18.3
II.
III.
IV.
4.1
4.2
V.
VI.
VII.
Changes in period
Cash-flow hedge
Capital increase
Cash
Internal sources
Share premium
Other
Profit distribution
Other
I.
Audited
PRIOR PERIOD
01.01.2014 - 31.12.2014
Beginning Balance
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(13)
Note Ref.
1.278
(2.985)
1.278
(4.263)
-
-
4.263
4.263
4.263
-
-
-
-
-
-
-
-
-
-
-
Share
certificate
"Share cancellation
premium"
profits
92.856
10.462
10.462
-
-
82.394
82.394
10.511
10.511
-
-
71.883
-
-
-
-
-
-
-
-
997.434
(16.475)
(16.475)
213.571
213.571
-
-
800.338
800.338
199.705
199.705
-
-
600.633
"Legal "Statutory "Extraordinary
Reserves" Reserves"
Reserves"
2.425
4.166
-
-
(1.741)
(1.741)
(2.660)
-
-
919
102.649
102.649
-
-
-
223.969
223.969
-
-
-
3.965
(224.033)
(224.033)
-
3.965
-
224.033
64
(210.216)
(210.216)
-
64
-
210.216
"Current
"Prior
Period Net Period Net
Other
Income/
Income/
Reserves
(Loss)"
(Loss)"
-
-
70.813
45.813
25.000
1.158.000
-
-
-
1.087.187
-
-
87.187
87.187
1.087.187
-
-
-
1.000.000
Paid-in
Capital
"Effect of
inflation
Accounting
on Capital and
Other Capital
Reserves"
(70.239)
-
(60.990)
-
(9.249)
(9.249)
-
(4.172)
-
(5.077)
"Marketable
Securities
Value
Increase
Fund"
156.528
(82.046)
(4.262)
(4.262)
-
38.248
-
204.588
204.588
-
27.714
-
176.874
-
-
-
-
-
-
-
-
Tangible and
Bonus
Intangible
shares
Assets
obtained
Revaluation
from
Differences Associates
-
-
-
-
-
-
-
-
Total
Equity
82.046
82.046
-
-
-
-
-
-
2.526.942
47.091
47.091
4.166
102.649
-
(60.990)
42.213
-
2.391.813
2.391.813
87.187
87.187
4.263
(2.660)
223.969
-
(4.172)
27.778
-
- 2.055.448
Acc. valuation
diff. from
assets held
for sale and
Hedging assets from
Funds
disc. op.
UNCONSOLIDATED STATEMENT
OF CHANGES IN SHAREHOLDERS’ EQUITY
ŞEKERBANK T.A.Ş.
99
100
ŞEKERBANK T.A.Ş.
STATEMENT OF UNCONSOLIDATED CASH FLOWS
Note Ref.
A.
CASH FLOWS FROM BANKING OPERATIONS
1.1
Operating profit before changes in operating assets and liabilities
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7
1.1.8
1.1.9
Interest received
Interest paid
Dividend received
Other income
Collections from previously written off loans
Payments to personnel and service suppliers
Taxes paid
Others
1.2
Changes in operating assets and liabilities
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
1.2.8
1.2.9
1.2.10
Net (increase) decrease in financial assets held for trading
Net (increase) decrease in financial assets at fair value through profit or loss
Net (increase) decrease in due from banks and other financial institutions
Net (increase) decrease in loans
Net (increase) decrease in other assets
Net increase (decrease) in bank deposits
Net increase (decrease) in other deposits
Net increase (decrease) in funds borrowed
Net increase (decrease) in matured payables
Net increase (decrease) in other liabilities
I.
Net cash provided from banking operations
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
Net cash provided from investing activities
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
Cash paid for purchase of entities under common control, associates and subsidiaries
Cash obtained from sale of entities under common control, associates and subsidiaries
Fixed assets purchases
Fixed assets sales
Cash paid for purchase of financial assets available for sale
Cash obtained from sale of financial assets available for sale
Cash paid for purchase of investment securities
Cash obtained from sale of investment securities
Others
C.
CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net cash provided from financing activities
3.1
3.2
3.3
3.4
3.5
3.6
Cash obtained from funds borrowed and securities issued
Cash used for repayment of funds borrowed and securities issued
Capital increase
Dividends paid
Payments for finance leases
Other
IV.
Effect of change in foreign exchange rate on cash and cash equivalents
V.
Net increase / (decrease) in cash and cash equivalents
VI.
Cash and cash equivalents at beginning of the period
VII.
Cash and cash equivalents at end of the period
(1)
(1)
(1)
Audited
Current Period
01.01.2015 - 31.12.2015
TRL THOUSAND
Audited
Prior Period
01.01.2014 - 31.12.2014
344.668
47.347
2.116.426
(1.170.785)
2.840
341.302
237.917
246.951
(380.544)
(31.354)
(1.018.085)
1.993.973
(1.049.621)
1.231
295.362
285.935
287.215
(362.500)
(48.359)
(1.355.889)
177.402
(317.937)
(3.426)
(2.319.346)
(446.084)
1.065.651
827.611
1.057.365
(4.369)
1.501
2.071
(1.458.607)
(454.785)
830.025
647.857
90.056
23.945
522.070
(270.590)
(440.360)
(452.089)
(37.459)
136.024
(2.078.835)
1.376.394
212.970
(49.454)
(3.333)
(39.973)
123.634
(12.355.434)
11.876.717
(216.928)
207.432
(44.204)
(120.102)
419.461
937.142
(1.091.585)
47.091
(12.750)
-
861.846
(508.500)
91.450
(25.335)
-
80.794
30.419
42.402
(272.799)
(2)
581.131
853.930
(3)
623.533
581.131
101
ŞEKERBANK T.A.Ş.
PROFIT DISTRIBUTION TABLE
TRL THOUSAND
I.
DISTRIBUTION OF CURRENT YEAR INCOME
1.1
1.2
1.2.1
1.2.2
1.2.3
CURRENT YEAR INCOME
TAXES AND DUTIES PAYABLE (-)
Corporate tax (Income tax)
Income witholding tax
Other taxes and duties (**)
A.
NET INCOME FOR THE YEAR (1.1-1.2)
1.3
1.4
1.5
PRIOR YEARS’ LOSSES (-)
FIRST LEGAL RESERVES (-)
OTHER STATUTORY RESERVES (-)
B.
NET INCOME AVAILABLE FOR DISTRIBUTION [(A-(1.3+1.4+1.5)]
1.6
1.6.1
1.6.2
1.6.3
1.6.4
1.6.5
1.7
1.8
1.9
1.9.1
1.9.2
1.9.3
1.9.4
1.9.5
1.10
1.11
1.12
1.13
1.14
FIRST DIVIDEND TO SHAREHOLDERS (-)
To owners of ordinary shares
To owners of preferred shares
To owners of preferred shares (preemptive rights)
To profit sharing bonds
To holders of profit and loss sharing certificates
DIVIDENDS TO PERSONNEL (-)
DIVIDENDS TO BOARD OF DIRECTORS (-)
SECOND DIVIDEND TO SHAREHOLDERS (-)
SECOND LEGAL RESERVES (-)
STATUTORY RESERVES (-)
EXTRAORDINARY RESERVES
OTHER RESERVES
SPECIAL FUNDS
II.
DISTRIBUTION OF RESERVES
2.1
2.2
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5
2.4
2.5
DISTRIBUTED RESERVES
DIVIDENDS TO SHAREHOLDERS (-)
III.
EARNINGS PER SHARE
3.1
3.2
3.3
3.4
TO OWNERS OF ORDINARY SHARES
TO OWNERS OF ORDINARY SHARES ( % )
TO OWNERS OF PREFERRED SHARES
TO OWNERS OF PREFERRED SHARES ( % )
IV.
DIVIDEND PER SHARE
4.1
4.2
4.3
4.4
(*)
Resolution regarding profit distribution will be decided at the General Meeting.
Defered tax gain is not included in the profit distribution in accordance with 2004/3 Numbered circular of BRSA
(**)
Audited
Current Period
31.12.2015 (*)
Audited
Prior Period
31/12/14
85.246
17.403
17.403
280.701
(56.732)
(71.456)
14.724
102.649
223.969
-
10.462
-
102.649
213.507
-
213.571
-
-
-
0,090
9
-
0,201
20
-
-
-
102
ŞEKERBANK T.A.Ş.
SECTION THREE
ACCOUNTING PRINCIPLES
I. Basis of Presentation
The Bank prepares financial statements and notes according to Communiqué
on Banks’ Accounting Practice and Maintaining Documents, other regulations,
communiqués and circulars in respect of accounting and financial reporting and
pronouncements issued by the Banking Regulation and Supervision Agency (BRSA)
and the Turkish Accounting Standards (TAS) and the Turkish Financial Reporting
Standards (TFRS) and the related statements and guidances announced by the
Public Oversight, Accounting and Auditing Standards Authority (“POA”).
Additional paragraph for convenience translation to English
The effects of differences between accounting principles and standards set out by
regulations in conformity with Article 37 of the Banking Law No. 5411, accounting
principles generally accepted in countries in which the accompanying consolidated
financial statements are to be distributed and the International Financial Reporting
Standards (“IFRS”) have not been quantified in the accompanying unconsolidated
financial statements. Accordingly, the accompanying unconsolidated financial
statements are not intended to present the financial position, results of operations
and changes in financial position and cash flows in accordance with the accounting
principles generally accepted in such countries and IFRS.
II. Explanations on Usage Strategy of Financial Assets and Foreign Currency
Transactions
The Bank aims to keep up its activities in every line of banking.
The Bank shapes its strategies for financial instruments depending on the source
of funds, which mainly consists of deposits. Investment instruments are selected
among liquid instruments. A level of liquidity which allows for covering obligations
is kept.
The Bank controls risk by managing currency positions in harmony with market
movements on the strength of short-term strategies instead of carrying longterm currency positions in big amounts, in order to avoid risks which might
arise from floating currency (exchange rate) regime. A currency risk arising
from customer transactions, the Bank tries to close by carrying out countertransactions.
Yield (return) and risk analyses are made in regard of maturity structure of balance
sheet items, re-pricing periods and interest rates, and appropriate investment
decisions are made. Budget contains limits on maturity basis and distributions of
assets items are defined.
The Bank’s off-balance sheet term transactions are managed by including such
transactions in the Bank’s total currency and interest positions. Term transactions
to be made by customers are carried out within loan and risk limits established
on customer basis. Currency swaps, in particular, being a larger part of the offbalance sheet transactions, are carried out to manage the Bank’s currency cash
flow without causing currency and interest risks.
The Bank aims to get longer-term funds (resources) in order to be able to hedge
itself against risks arising from short-term character of deposits, while trying to
increase the share of floating interest rate items in its assets.
III. Explanations on Foreign Currency Transactions
The foreign currency monetary assets and liabilities followed under balance sheet
are converted into Turkish Lira at exchange rate at the balance sheet date. The
non-monetary accounts carried at fair value are converted from the exchange
rates at the time the fair value was determined. Exchange rate differences arising
from monetary items conversion is stated under the income statement.
IV. Explanations on Associates and Subsidiaries
Associates and subsidiaries are recorded at the cost of acquisition and provision is
provided for any impairment in value.
V. Explanations on Forward and Option Contracts and Derivative Instruments
The Bank’s derivative instruments consist of foreign currency swaps, interest
swaps, option and forward foreign currency buy/sell transactions. Fair values of
foreign currency forward and swap transactions are determined by comparing the
Bank’s period end foreign exchange rates and current market foreign exchange
rates to the balance sheet date. The resulting gain or loss is reflected in the income
statement. In calculation of fair values of the interest swap contracts, interest
amounts to be paid or received upon the fixed interest rate in the contract and
interest amounts to be received or paid upon the floating interest rates in the
contracts have been recalculated and discounted in accordance to valid interest
rates in the current market and the differences have been reflected to the current
term income statement. Discounted values calculated using the interest rates
between the transaction date and repricing date are used in determination of the
fair values of interest rate swaps. Some of the derivative instruments, although
made for economical hedging purposes, are accounted as trading transactions
since they are not qualified to be a hedging instrument as per “Financial
Instruments: Recognition and Measurement” (“TAS 39”). Realized gains or losses
are reflected in the statement of income on these derivative instruments.
VI. Explanations on Interest Income and Expenses
The interest income and expenses are accounted by accrual basis of accounting
using the effective interest rate (the ratio that equalizes the future cash flow of
financial assets and liabilities to the current net book value).
According to the related legislation, interest accruals and discounts on loans and
other receivables which become doubtful are cancelled and such amounts are
recorded as interest income when they are collected.
VII. Explanations on Fees and Commission Income and Expenses
Fees for various banking services are recorded as income when collected and
prepaid commission income on cash loans using the effective interest rate
rediscount method and then recorded as income in the related period.
Fees and commissions for funds borrowed paid to other financial institutions, as
part of the transaction costs, are recorded as prepaid expenses and using the
effective interest rate expensed within the related periods.
The dividend income is reflected in the financial statements on a cash basis when
the profit distribution is realized by the associates and subsidiaries.
103
ŞEKERBANK T.A.Ş.
VIII. Explanations on Financial Assets
Financial instruments comprise financial assets, financial liabilities and derivative
instruments. Financial instruments form a significant part of the Bank’s operations.
Financial instruments affect liquidity, market, and credit risks on the Bank’s balance
sheet in all respects. The Bank trades these instruments on behalf of its customers
and on its own behalf.
Financial instruments expose, affect credit and interest risks and diminish the
liquidity in the financial statements. All regular way purchases and sales of
financial assets are recognized on the settlement date i.e. the date that the asset
is delivered to or by the Bank. Settlement date accounting requires (a) accounting
of the asset when acquired by the institution and (b) disposing of the asset out of
the balance sheet on the date settled by the institution; and accounting of gain
or loss upon disposal. In case of application of settlement date accounting, for
the financial assets at fair value through profit and loss, available for sale financial
assets and securities held for trading, the Bank accounts for the changes that
occur in the fair value of the asset in the period between trade transaction date
and settlement date.
Regular way purchases or sales are purchases or sales of financial assets
that require delivery of assets within the time frame generally established by
regulation or convention in the market place. Changes in fair value of assets to
be received during the period between the trade date and the settlement date
are accounted for in the same way as the acquired assets. Fair value differences
are not accounted for assets presented at cost or amortized cost; gain or loss of
financial assets at fair value through profit and loss are reflected in the statement
of income; gain or loss of available for sale assets are accounted for in the
shareholders’ equity.
As well as customer deposits, the Bank is funding its growing long term and fixed
interest rate TRL loan portfolio through long term floating interest rate foreign
currency resources provided from international markets. The Bank transforms the
foreign currency liquidity which is created by funds provided from international
markets to TRL liquidity through long term swap contracts, as a result of this
situation the Bank can both provide TRL funds for the long term fixed rate loans
and provide protection against interest rate risk.
The Bank reflects swaps, used for funding long term and fixed interest rate TRL
loan portfolio, with fair value in the financial statements. The Bank has initially
classified these long term and fixed interest rate TRL loan portfolio funded through
swaps as “financial assets at fair value through profit and loss” and follows them at
fair value in the financial statements.
TRL 11,657 Thousand of the housing, commercial instalment, consumer, vehicle
and finance lendings’ principal amounts are classified as under the account of
financial asset at fair value through profit and loss (31 December 2014 - TRL 22,229
Thousand).
Held to Maturity Investments, Financial Assets Available for Sale and Loans
Investments held to maturity include securities with fixed or determinable
payments and fixed maturity where there is an intention of holding till maturity
and the relevant conditions for fulfilment of such intention, including the funding
ability and excluding loans and receivables.
Available for sale financial assets include all securities other than loans and
receivables, securities held to maturity and securities held for trading.
The securities are initially recognized at cost including the transaction costs.
The financial instruments are mentioned below with regard to their accounts
classified in the financial statements and their valuations according to these
classifications.
Cash, Banks, and Other Financial Institutions
Cash and cash equivalents comprise cash on hand, demand deposits, and highly
liquid short-term investments with maturity of 3 months or less following the
purchase date, not bearing risk of significant value change, and these investments
that are readily convertible to a known amount of cash. The book values of these
assets approximate their fair values.
Financial Assets at Fair Value Through Profit and Loss
Trading securities are securities which were either acquired to generate a profit
from short-term fluctuations in price or dealer’s margin, or they are the securities
included in a portfolio with a pattern of short-term profit taking.
Trading securities are initially recognized at cost. Transaction costs of the related
securities are included in the initial cost. The positive difference between the
cost and fair value of such securities is accounted for as interest and income
accrual, and the negative difference is accounted for as “Impairment Provision on
Marketable Securities”.
After the initial recognition, available-for-sale securities are measured at fair
value and the unrealized gain/loss originating from the difference between the
amortized cost and the fair value is recorded in “Marketable Securities Value
Increase Fund” under the equity. Fair values of debt securities that are traded in an
active market are determined based on quoted prices or current market prices.
In the absence of prices formed in an active market, fair values of these securities
are determined using the Official Gazette prices or other valuation methods stated
in TAS. In case there is no market price in an active market, the other methods
explained in TAS No: 39 are used for determination of the fair value.
The real coupon rates for government bonds indexed to consumer price index are
fixed throughout maturities. As per the statements made by the Turkish Treasury
on the dates of issuance, such securities are valued taking into account the
difference between the reference index at the issue date and the reference index
at the balance sheet date to reflect the effects of inflation.
Loans and receivables are financial assets raised by the Bank providing money to
debtors, other than assets held for trading purposes or for the purpose of selling in
the short-term.
104
ŞEKERBANK T.A.Ş.
After initial recognition held to maturity investments are measured at amortized
cost by using effective interest rate less impairment losses, if any.
The interests received from held-to-maturity investments are recorded as interest
income.
There are no financial assets that have been previously classified as held-tomaturity investments but cannot be currently classified as held-to-maturity for
two years due to “tainting” rules.
The Bank classifies its securities as referred to above at the acquisition date of
related assets.
Shares unquoted on the stock exchange amounting to TRL 7,236 Thousand are
classified under “Other Marketable Securities” of Financial Assets Available for Sale
in the current period (31 December 2014 - TRL 6,724 Thousand).
Loans and Provisions for Impairment
Loans and receivables are initially recognized at cost according to their original
balances, after the initial recognition, they are accounted at amortized cost by
using effective interest rate as stated in the TAS No: 39.
Foreign currency-indexed individual and commercial loans are shown under
Turkish Currency (“TRL”) accounts after having been converted into Turkish Lira at
exchange rate at transaction date. Repayments are calculated at exchange rate at
date of payment and exchange rate differences encountered are reflected in profit
and loss accounts. Net foreign exchange gains of the foreign currency indexed
loans are presented under foreign exchange gain/loss.
Provision is set for the doubtful loans and the amount is charged in the current
period income statement. The provisioning amount for non-performing loans are
determined by the Bank’s management for compensating the probable losses of
the doubtful loan portfolio, by evaluating the quality of loan portfolio, risk factors
and considering the economy conditions, other facts and related regulations.
The Bank Management applies provision policy for the “non-performing loans” in
accordance with the requirements of the Turkish banking regulation adopted by
the BRSA.
The provisions are reflected in the income statement under “Provision and
Impairment Expenses - Specific Provision Expense”. The collections made
regarding these loans are first deducted from the principal amount of the loan and
the remaining collections are deducted from interest receivables.
The collections related to loans for which provision is made in the current period
are reversed from the “Provision for Loans and Other Receivables” account in
the income statement. The collections related to loans written off or provisioned
in prior years are recorded to “Collections Related to the Prior Period Expenses”
under “Other Operating Income” account and related interest income is credited
to the “Interest Received from Non-performing Loans” account.
Within the framework of the regulation and principles referred to in explanations
above, in addition to specific loan loss provisions; the Bank records general loan
loss provisions for loans and other receivables. Subsequent to the change in
the regulation on “Change in the Methods and Principles for the Determination
of Loans and Other Receivables to be Reserved for and Allocation of Reserves”
published in the Official Gazette No. 26779 dated 6 February 2008; for the watch
list loans the provision rate has been changed to 2 % for cash loans and 0.4 %
for non-cash loans. The Bank, as a consequence of the regulation published in
the Official Gazette No. 27119 dated 23 January 2009 amending the “Regulation
of Methods and Principles for the Determination of Loans and Other Receivables
to be Reserved for and Allocation of Reserves”, payment obligation arising from
the Law No. 3167, “Arrangements of the Payments Made Through Cheque and
Protection of the Cheque Holders” and other related regulations, applies one
fourth of the related provision group rate for each leaf of the cheques given to loan
customers whose loans are in third, fourth or fifth groups, and for those cheques
which were delivered at least five years before the reporting period.
Subsequent to the change in the regulation on “Change in the Methods and
Principles for the Determination of Loans and Other Receivables to be Reserved
for and Allocation of Reserves” published in the Official Gazette No. 27947 dated 28
May 2011; the banks can change the conditions of the payment plan of the loans
which are followed under standard loans and receivables. However if the original
payment plan is changed, the general loan loss provision ratio for standard and for
the loans and receivables under close monitoring should be 5 %.
In accordance with the communiqué “The Change in the Determining the Nature
of Loans and Receivables and Principles and Procedures on the Allocation of
Loan and Receivable Provisions” published on 21 September 2012 No: 28418 of
the Official Gazette, as of the latest month-end prior the effective date of the
Communiqué, the Bank should provide provision amounted with the rates stated
in the first paragraph of the Article 7 of the Communiqué, 40 % until 31 December
2012, 60% until 31 December 2013, 80% until 31 December 2014 and 100% until
31 December 2015, in general allowances for cash loans, close monitoring loans,
letters of guarantees, sureties and other non-cash loans. The Bank has reflected
100% of the occurred difference in 31 December 2012 financial statements.
As a consequence of the regulation published in the Official Gazette No. 28789
dated 8 October 2013 amending the “Change in the Methods and Principles for the
Determination of Loans and Other Receivables to be Reserved for and Allocation of
Reserves” in case consumer loans other than mortgage loans exceed 25 % of total
loans and non performing consumer loans other than mortgage loans exceeds 8
% of total consumer loans other than mortgage loans, general loan loss provision
ratio is 4 % during maturity of consumer loans which are followed under standard
loans and receivables except for mortgage loans; for the loans under close
monitoring except for mortgage loans, the general loan provision ratio is 8 %. Also
for export cash and non-cash loans followed under standard loans general loan
provision ratio is 0 % and for SME cash loans general loan provision ratio is 0.5 %
and for non-cash SME loans ratio is 0.1 %.
105
ŞEKERBANK T.A.Ş.
IX. Explanations on Impairment of Financial Assets
XII. Explanations on Assets Held for Sale and Discontinued Operations
At each balance sheet date, the Bank evaluates the carrying amounts of its
financial asset or a group of financial assets to determine whether there is an
objective indication that those assets have suffered an impairment loss. If any such
indication exists, the Bank determines the related impairment.
Assets held for sale are those assets or group of assets, which will be disposed
under a plan prepared by the management regarding the sale of those asset
or the group of assets together with an active program for determination of
buyers and plan completion date. Those assets (or else the group of assets) are
marketed in conformity with its fair value. On the other hand, the sale is expected
to be recorded at the completed sale within one year after the classification
date; and the necessary transactions and procedures to complete the plan
should demonstrate the fact that the possibility of making significant changes or
cancelling the plan is low.
A financial asset or a financial asset group incurs impairment loss only if there is
an objective indicator related to the occurrence (or non-occurrence) of one or
more than one event (“loss event”) after the recognition of that asset; and such
loss event (or events) causes, an impairment as a result of the effect on the reliable
estimate of the expected future cash flows of the related financial asset and asset
group. Irrespective of high probability, the expected losses caused by the future
events are not recorded.
X. Explanations on Offsetting of Financial Assets and Liabilities
Financial assets and liabilities are offset when the Bank has a legally enforceable
right to set off, and the intention of collecting or paying the net amount of related
assets and liabilities or the right to offset the assets and liabilities simultaneously.
As of 31 December 2015, the Bank has TRL 123,300 Thousand assets held for sale
(31 December 2014 - None).
A discontinued operation is a division of a bank that is either disposed or held for
sale. Results of discontinued operations are included in the income statement
separately.
The Bank does not have any discontinued operations.
XI. Explanations on Sales and Repurchase Agreements and Lending of Securities
XIII. Explanations on Goodwill and Other Intangible Assets
The sales and purchase of government securities under repurchase agreements
made with the customers are being recorded in balance sheet accounts in
accordance with the Uniform Chart of Accounts. Accordingly in the financial
statements, the government bonds and treasury bills sold to customers under
repurchase agreements are classified under securities held for trading, available
for sale and held to maturity depending on the portfolio they are originally included
in and are valued according to the valuation principles of the related portfolios.
Funds obtained from repurchase agreements are classified as a separate subaccount under money market borrowings account in the liabilities.
There is no goodwill regarding the investments in associates and subsidiaries.
These transactions are short-term and consist of domestic public sector debt
securities.
The income and expenses from these transactions are reflected in the “Interest
Income on Marketable Securities” and “Interest Expense on Money Market
Borrowings” accounts in the income statement.
Intangible assets are accounted for at restated cost until 31 December 2004 in
accordance with inflation accounting and are amortized with straight-line method.
After 31 December 2004 the cost of assets subject to amortization is restated as
the acquisition cost and any other costs incurred in order to make the intangible
asset ready for use less reserve for impairment, if any, are amortized on a
straight-line method. The cost of assets subject to amortization is restated after
deducting the exchange differences, capitalized financial expenses and revaluation
increases, if any, from the cost of the assets.
Those items classified as intangible assets mainly consist of software. As being
different from determination of other intangible assets’ amortization periods,
these items are determined to have 5 years of amortization. Software is mainly
outsourced and the related expenses are not capitalized.
As of 31 December 2015, the Bank does not have reverse repo transactions (31
December 2014 - TRL 73,205 Thousand).
There are no anticipated changes in the accounting estimates about the
amortization rate and method and residual values that would have a significant
impact in the current and future periods.
As of 31 December 2015, the Bank does not have marketable securities lending
transactions (31 December 2014 - None).
The Bank has no written off intangible fixed assets, which are fully amortized, in
the current period (31 December 2014- None).
106
ŞEKERBANK T.A.Ş.
XIV. Explanations on Tangible Fixed Assets
XV. Explanations on Leasing Transactions
Cost of the Bank’s immovables has been adjusted for inflation until 31 December
2004. As of 31 December 2006, the Bank changed its accounting policy and
adopted revaluation method on annual basis under scope of Standard on Tangible
Fixed Assets (TAS 16) with respect to valuation of immovables included in its
tangible fixed assets. Tangible Fixed Assets’ appraisal valuation was conducted
by an independent valuation company as at 31 December 2015 reflected in the
financial statements, accordingly. The difference between expertise value and
cost as of 31 December 2015 is TRL 298,218 Thousand gross (after net off deferred
tax, net amount is TRL 238,574 Thousand) (31 December 2014 gross: TRL 250,408
Thousand, net-off deferred tax amount TRL 200,326 Thousand).
Tangible fixed assets acquired by financial leases are accounted for in accordance
with TAS No: 17 “Leases”. In accordance with this standard, the leasing
transactions, which consist of foreign currency liabilities, are translated to Turkish
Lira with the exchange rates prevailing at the transaction dates and they are
recorded as an asset or a liability. The foreign currency liabilities are translated to
Turkish Lira with the Bank’s period end exchange rates. The increases/decreases
resulting from the differences in the foreign exchange rates are recorded as
expense/income in the relevant period. The financing cost resulting from leasing is
distributed through the lease period to form a fixed interest rate.
In addition to the interest expense, the Bank records depreciation expense for the
depreciable leased assets in each period. The depreciation rate is determined in
accordance with TAS No: 16 “Accounting Standard for Tangible Fixed Assets” and
the depreciation rate of these assets is 20 %.
Other tangible fixed assets were accounted at their restated costs in line with
inflation accounting until 31 December 2004; afterwards the acquisition cost
and any other cost incurred to prepare the fixed asset for usage are reflected
less reserve for impairment, if any, and depreciated on a straight-line method.
Depreciation of assets held less than one year as of the balance sheet date is
accounted for proportionately. There is no change in amortization method in
current period and the annual rates used, which approximate rates based on the
estimated economic useful lives of the related assets, are as follows:
Operating lease payments are recognized as expenses in the income statement on
a straight line basis over the lease term.
The Bank does not have any leasing transactions as lessor.
%
Buildings
2
Motor vehicles
20
Furniture, fixtures and office equipment and others
Leasehold improvements
2 – 20
During the lease agreement
Gain or loss resulting from disposals of the tangible fixed assets is reflected to the
income statement as the difference between the net proceeds and net book value.
Maintenance costs of tangible fixed assets are capitalized if they extend the
economic useful life of related assets. Other maintenance costs are expensed.
There are no pledges, mortgages or other restrictions on the tangible fixed assets.
There is no purchase commitments related to the tangible fixed assets.
The Bank reviews the residual value and the useful life of buildings at least at each
financial year-end and, if expectations differ from previous estimates, the changes
accounted for as a change in an accounting estimate in accordance with TAS 8
Accounting Policies, Changes in Accounting Estimates and Errors.
The Bank has TRL 1,751 Thousand written off other fixed assets in the current
period (31 December 2014 - TRL 47 Thousand).
XVI. Explanations on Provisions and Contingent Liabilities
Provisions are recognized when there is a present obligation, it is probable that an
outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are determined by using the Bank’s best expectation of expenses in
fulfilling the obligation, and discounted to present value if material.
XVII. Explanations on Liabilities Regarding Employee Benefits
Defined Benefit Plans
In accordance with existing social legislation in Turkey, the Bank is required to
make lump-sum termination indemnities over a 30 day salary for each employee
who has completed over one year of service, whose employment is terminated
due to retirement or for reasons other than resignation or misconduct. The Bank
is also required to make a payment for the period of notice calculated over each
service year of the employee whose employment is terminated for reasons other
than resignation or misconduct. Total benefit is calculated in accordance with TAS
No: 19 “Turkish Accounting Standard on Employee Benefits”.
Such benefit plans are unfunded since there is no funding requirement in Turkey.
The cost of providing benefits to the employees for the services rendered by them
under the defined benefit plan is determined by independent actuaries annually
using the projected unit credit method.
107
ŞEKERBANK T.A.Ş.
In calculating the related liability to be recorded in the financial statements for
these defined benefit plans, the Bank uses independent actuaries and also makes
assumptions and estimation relating to the discount rate to be used, turnover of
employees, future change in salaries/limits, etc. These estimations are reviewed
annually. According to revised TAS 19 published as at 1 January 2013, actuarial gain/
losses are recorded under equity. As of 31 December 2015 , the carrying value of
employee benefit provisions is TRL 57,339 Thousand that consists of employee
termination benefit provisions amounting to TRL 53,380 Thousand and employee
vacation pay provisions amounting to TRL 3,959 Thousand (31 December 2014 employee termination benefit provisions was TRL 57,994 Thousand and employee
vacation benefit provisions was TRL 2,723 Thousand).
The above mentioned law also includes the following:
•
Through a commission constituted by the attendance of one representative
separately from the Social Security Institution, Ministry of Finance, Turkish
Treasury, State Planning Organization, Banking Regulation and Supervision
Agency, Savings Deposit Insurance Fund, one from each pension fund, and one
representative from the organization employing pension fund contributors,
related to the transferred persons, the cash value of the liabilities of the
pension fund as of the transfer date will be calculated by considering their
income and expenses in terms of the lines of insurance within the context of
the related Law, and technical interest rate of 9.8% will be used in the actuarial
calculation of the value in cash,
•
And that after the transfer of the pension fund contributors, the ones who
receive salaries or income from these funds and their rightful beneficiaries
to the Social Security Institution, these persons’ uncovered social rights and
payments, despite being included in the trust indenture that they are subject
to, will be continued to be covered by the pension funds and the employers of
pension fund contributors
Defined Contribution Plans
Şekerbank T.A.Ş. Pension Fund, of which most of the Bank’s employees are
members, is established in accordance with the provisional Article 20 of the Social
Security Act No: 506. As per the provisional article No: 23 of the Banking Law
No: 5411, the Bank pension funds, which were established within the framework
of Social Security Institution Law, should be transferred to the Social Security
Institution within 3 years after the issuance of the related law. Methods and
principles related to the transfer have been determined as per the Cabinet decision
no: 2006/11345 made on 30 November 2006. However, the related article of the
act has been cancelled upon the President’s application filed on 2 November 2005
by the Supreme Court’s order no: E.2005/39, K.2007/33 issued on 22 March 2007,
which was published in the Official Gazette No: 26479 on 31 March 2007 and the
execution of the decision was ceased as of the issuance date of the order.
After the justified decree related to cancelling the provisional article 23 of the
Banking Law was announced by the Constitutional Court on the Official Gazette
dated 15 December 2007 and numbered 26731, Turkish Grand National Assembly
started to work on establishing new legal regulations, and after it was approved
at the General Assembly of the TGNA, the Law numbered 5754 “Emendating Social
Security and General Health Insurance Act and Certain Laws and Decree Laws”,
which was published on the Official Gazette dated 8 May 2008 and numbered
26870, came into effect. The new law decrees that the contributors of the Bank
pension funds, the ones who receive salaries or income from these funds and
their rightful beneficiaries will be transferred to the Social Security Institution
and will be subject to this Law within 3 years after the release date of the related
article, without any need for further operation. The threeyear transfer period
can be prolonged for maximum 2 years by the Cabinet decision. However related
transfer period has been prolonged for 2 years by the Cabinet decision dated 14
March 2011, which was published on the Official Gazette dated 9 April 2011 and
numbered 27900. In addition, by the Law “Emendating Social Security and General
Health Insurance Act”, which was published on the Official Gazette dated 8 March
2012 and numbered 28227, this period of 2 years has been raised to 4 years after
that related transfer period has been prolonged for one more year by the Cabinet
decision dated 08 April 2013, which was published on the Official Gazette dated 3
May 2013 and numbered 28636 also this period has revalidated one more year by
the Cabinet decision dated 24 February 2014, which was published on the Official
Gazette dated 30 April 2014 and numbered 28987. The Council of Ministers has
been lastly authorized to determine the transfer date in accordance with the last
amendment in the first paragraph of the 20th provisional article of Law No.5510
implemented by the Law No. 6645 on Amendment of the “Occupational Health
and Safety Law and Other Laws and Decree Laws” published in the Official Gazette
dated 23 April 2015 and numbered 29335.
On the other hand, the application made on 19 June 2008 by the Republican
People’s Party to the Constitutional Court for the annulment and motion for stay of
some articles, including the first paragraph of the provisional article 20 of the Law,
which covers provisions on transfers, was rejected in accordance with the decision
taken at the meeting of the afore-mentioned court on 31 March 2011.
The technical financial statements of the Pension Fund are reviewed by an actuary
registered audit company in accordance with the Article 21 of the Insurance Law
numbered 5684 and the requirements of the “Actuary Regulations” issued based
on the Article 38. There was TRL 7,941Thousand actuarial deficit in the actuary
report dated January 2016 which was prepared using a technical interest rate of
9.80 % in accordance with the basis set out in the Council of Ministers decision
no: 2006/11345 on 30 November 2006 (31 December 2014 - TRL 42,553 Thousand
surplus).
As of 31 December 2015, TRL 7,941 Thousand provision is recorded on the financial
statements of the Bank (31 December 2014 - None).
XVIII. Explanations on Taxation
Corporate tax
According to the Article 32 of the Corporate Tax Law No. 5520, accepted in the
meeting of the Turkish Grand National Assembly of Turkey on 13 June 2006 and
announced in the Official Gazette dated 21 June 2006, the corporate tax rate has
been decreased from 30 % to 20 %, effective from 1 January 2006 as per the
Article 37 of the Corporate Tax Law.
The tax legislation requires advance tax payment of 20 % to be calculated and paid
based on earnings generated for each quarter. The amounts thus calculated and
paid are offset against the final tax liability for the year (31 December 2014 - 20 %).
Annual tax returns are required to be filed between the first and twenty fifth day of
the fourth month following the balance sheet date and paid in one instalment until
the end of the related month.
108
ŞEKERBANK T.A.Ş.
Tax provision related with items that are credited or charged directly to equity are
charged or credited to equity.
The Bank’s issued bills amount is TRL 425,588 Thousand as of 31 December 2015 (31
December 2014- TRL 494,389 Thousand).
According to the Corporate Tax Law, tax losses can be carried forward for a
maximum period of five years following the year in which the losses are incurred.
Tax authorities can inspect tax returns and the related accounting records for a
retrospective maximum period of five years.
The Bank issued Asset Covered Bond amounting to TRL 1,500,000 Thousand
and details are shown the table below. The investors are International
Finance Corporation (IFC), Nederlandse Financierings-Maatschappij Voor
Ontwikkelingslanden N.V. (FMO), UniCredit Bank AG, European Investment
Bank (EIB), European Bank for Reconstruction and Development (EBRD), KfW
Bankengruppe and qualified institutional investors. The transactions were
conducted in line with the related Capital Market Board regulation and as a
security the Bank’s SME loans were used. Outstanding Asset Covered Bond amount
is TRL 764,218 Thousand as of 31 December 2015 (31 December 2014 – TRL 642,648
Thousand).
Deferred Tax Liability / Asset
The Bank calculates and reflects deferred tax asset or liability on timing differences
which will result in taxable or deductible amounts in determining taxable profit of
future periods.
As of 31 December 2015 and 31 December 2014, in accordance with TAS No: 12
“Turkish Accounting Standard on Income Taxes” and the changes in the circular
of the BRSA numbered BDDK.DZM.2/13/1-a-3 dated 8 December 2004, the Bank
calculated deferred tax asset on all deductible temporary differences except for
general loan reserves, if sufficient taxable profit in future periods to recover such
amounts is probable; as well as deferred tax liability on all taxable temporary
differences. Deferred tax assets and liabilities are shown in the accompanying
financial statements on a net basis.
The net deferred tax asset is included in deferred tax asset and the net deferred
tax liability is reflected under deferred tax liability on the balance sheet. The
deferred tax benefit of TRL 17,403 Thousand is stated under the tax provision line
in the income statement (31 December 2014 – TRL 14,724 Thousand deferred tax
benefit). The deferred tax liability of TRL 42,522 Thousand (31 December 2014 – TRL
47,166 Thousand deferred tax liability) resulting from differences related to items
that are debited or charged directly to equity is netted with the related equity
accounts.
Furthermore, as per the above circular of the BRSA, deferred tax benefit balance
resulting from netting of deferred tax assets and liabilities should not be used in
dividend distribution and capital increase.
XIX. Additional Explanations on Borrowings
Issue Date
14 September 2011
14 September 2011
9 December 2011
9 December 2011
28 November 2013
27 February 2014
18 December 2015
(*)
Series
2011-2
2011-3
2011-4
2011-5
2013-1
2014-1
Investors
FMO
IFC
EIB
EBRD
KfW/EIF
Qualified
Institutional
Investors
2015-1
EIB
Amount
61,250
44,750
120,000
60,000
135,975
Outstanding
Amount (*)
61,250
17,900
-
Currency
Maturity
TRL 12.09.2016
TRL 12.09.2016
TRL 12.01.2015
TRL 12.01.2015
TRL 12.12.2014
361,846
319,400
361,846
319,400
TRL 13.03.2017
TRL 12.03.2019
Outstanding amounts do not include accruals.
The Bank has not issued convertible bonds.
XX. Explanations on Share Certificates
The Bank’s paid-in capital has been increased to TRL 1,158,000 Thousand by
contribution in kind in the amount TRL 25,000 Thousand, which composed of
TRL 16,475 Thousand from extraordinary reserves, TRL 4,262 Thousand from
subsidiaries and real estate sale profit, TRL 4,263 Thousand from share premium
and by cash in the amount of TRL 45,813 Thousand in the reporting period.
The borrowing costs related to purchase, production, or construction of qualifying
assets that require significant time to be prepared for use and sale are included in
the cost of assets until the relevant assets become ready to be used or to be sold.
Financial investment income obtained by temporary placement of undisbursed
investment loan in financial investments is offset against borrowing costs qualified
for capitalization.
XXI. Explanations on Acceptances
All other borrowing costs are recorded to the income statement in the period they
are incurred.
There are no government incentives utilized by the Bank.
Acceptances are realized simultaneously with the payment dates of the customers
and they are presented as probable commitments in off-balance sheet accounts.
XXII. Explanations on Government Incentives
109
ŞEKERBANK T.A.Ş.
XXIII. Explanations on Segment Reporting
The Bank primarily deals with and engages in corporate, retail and SME banking in
line with its strategy.
Current Period
Corporate
SME
Retail
Other
Net Interest Income
Net Fees and Commission Income
and Other Operating Income
Dividend Income
Trading Profit/(Loss)
Impairment provision for loans and
other receivables
Other Operating Expenses
594,290 891,839 (325,424)
Profit/(Loss) before taxes
Taxation
600,897 944,211 (330,329) (1,129,533)
-
93,691 163,983
7,350
-
(94,434)
-
Net Profit for the Period
Prior Period
Net Interest Income
(111,611)
-
38,236
-
Total
(104,320) 1,056,385
227,923 523,833
7,350
(218,569) (218,569)
(43,141) (181,945) (431,131)
- (852,622) (852,622)
85,246
17,403
-
-
-
-
102,649
Corporate
SME
Retail
Other
Total
466,983 839,962 (266,252)
(62,713)
977,980
431,799
Net Fees and Commission Income
and Other Operating Income
111,115 138,049
50,524
132,111
Dividend Income
1,266
-
-
-
1,266
-
-
-
(34,131)
(34,131)
(57,842) (90,331)
(32,057)
(115,887)
(296,117)
Impairment provision for loans and
other receivables
-
-
- (800,096) (800,096)
521,522 887,680 (247,785) (880,716)
280,701
Taxation
-
-
-
-
(56,732)
-
-
-
-
223,969
Current Period
Commercial
SME
Assets
9,214,596 5,832,582
Liabilities
4,827,402
Prior Period
Commercial
Treasury/
Retail Investment Undistributed
Total
1,690,387
5,953,574
1,724,827 24,415,966
1,212,826 8,827,405
6,060,690
3,487,643 24,415,966
SME
Treasury/
Retail Investment Undistributed
Total
Assets
6,389,331 6,472,009
1,793,739
4,998,288
1,533,921 21,187,288
Liabilities
4,917,692
7,344,867
4,268,113
3,380,567 21,187,288
1,276,049
XXIV. Explanations on Other Matters
None.
SECTION FOUR
INFORMATION ON FINANCIAL STRUCTURE
I. Explanations Related to the Capital Adequacy Standard Ratio
The method used for risk measurement in determining capital adequacy
standard ratio; capital adequacy standard ratio is calculated in accordance with
the Communiqué on “Measurement and Assessment of Capital Adequacy of
Banks”, which was published on 28 June 2012 in the Official Gazette numbered
28337 and effective since 1 July 2012 and Communiqué on “Banks’ Equity” which
was published on 5 September 2013 and in the Official Gazette numbered 28756
effective since 1 January 2014. In the current period, capital adequacy standard
ratio is calculated in accordance with the Communiqué which is effective since 1
January 2014. The Bank’s unconsolidated capital adequacy ratio in accordance with
the related communiqués is 13.66 % (31 December 2014 – 14.60 %).
In the computation of capital adequacy standard ratio, data prepared in
accordance with statutory accounting requirements are used. Additionally, the
market risk exposure as well as the operational risk exposure are calculated in
accordance with the communiqué on the Communiqué on “Measurement and
Assessment of Capital Adequacy of Banks” and are taken into consideration in the
capital adequacy standard ratio calculation.
The values deducted from the capital base in the shareholders’ equity computation
are excluded while calculating risk-weighted assets, non-cash loans and
contingent liabilities. Assets subject to depreciation and impairment among riskweighted assets are included in the calculations over their net book values after
deducting the relative depreciations and provisions.
In the calculation process of credit risk, risk types are classified based on
“Measurement and Assessment of Capital Adequacy of Banks-Appendix 1” and
financial collaterals taken into account according to the credit risk mitigation
techniques communiqué and classified in the related risk weight. While
simple approach is taken into account for banking book items, the Bank uses
comprehensive approach for trading book items in the credit mitigation process.
While calculating the basis of non-cash loans subject to credit risk, the net
receivable amount from the counter parties net of provision amount set
in accordance with the “Communiqué on Methods and Principles for the
Reserves” is multiplied by the loan conversion rates presented in the Article 5 and
related clauses of the Communiqué on “Measurement and Assessment of Capital
Adequacy of Banks”, and calculated by applying the risk weights presented in the
Capital Adequacy Analysis Form.
In the calculation of counterparty credit risk, the current exposure method is
used according to the Communiqué on “Measurement and Assessment of Capital
Adequacy of Banks” the Article 21 and Appendix 2.
110
ŞEKERBANK T.A.Ş.
Information related to the capital adequacy ratio:
Risk Weight
Bank
0%
10%
20%
35%
50%
75%
100%
150%
200%
250%
5,613,395
-
-
-
-
-
29,598
-
-
-
-
-
74,025
-
-
-
-
-
-
-
641
-
-
-
-
-
7,402
-
-
-
The Amount Subject to Credit Risk
Risk Types
Contingent and Non-Contingent Claims on Sovereigns
Contingent and Non-Contingent Claims on Regional Governments and
Local Authorities
Contingent and Non-Contingent Claims on Administrative Units and
Non-commercial Enterprises
Contingent and Non-Contingent Claims on Multilateral Development
Banks
-
-
-
-
-
-
-
-
-
-
Contingent and Non-Contingent Claims on International Organizations
-
-
-
-
-
-
-
-
-
-
Contingent and Non-Contingent Claims on Banks and Capital Market
Intermediary
-
-
48,421
-
48,201
-
147,657
-
-
-
Contingent and Non-Contingent Claims on Corporate Receivables
97,490
-
2,507
-
-
-
8,211,213
-
-
-
Contingent and Non-Contingent Claims Included in the Regulatory Retail
Portfolios
63,442
-
-
-
- 5,497,071
Contingent and Non-Contingent Claims Secured by Residential Property
-
-
-
- 5,018,372
66,968
-
-
-
-
4,097
-
-
-
Past Due Loans
-
-
-
-
-
-
293,014
-
-
-
Higher-Risk Categories Defined by Agency
-
-
-
-
-
-
-
491,013
567,698
2
Collateralized Mortgage Marketable Securities
-
-
-
-
-
-
-
-
-
-
Securitization Exposures
-
-
-
-
-
-
-
-
-
-
Short-Term Claims on Banks and Corporate
-
-
-
-
-
-
-
-
-
-
Undertakings for Collective Investments in Transferable Securities
-
-
-
-
-
-
-
-
-
-
173,701
-
4
-
-
-
1,531,841
-
-
-
Other Claims
Summary information related to the capital adequacy ratio:
Bank
Required Capital Liabilities for Credit Risk (Main Amount related with Credit Risk*0.08) (RCLCR)
Required Capital Liabilities for Market Risk (RCLMR)
Required Capital Liabilities for Operational (RCLOR) (*)
Current Period
Prior Period
1,507,583
1,362,581
31,251
35,980
154,136
136,233
2,890,626
2,800,841
Shareholders’ Equity/((RCLCR+RCLMR+RCLOR) *12.5*100)
13.66
14.60
Tier I Capital/((RCLCR+RCLMR+RCLOR) *12.5*100)
11.32
11.80
Common Equity Tier I Capital/((RCLCR+RCLMR+RCLOR) *12.5*100)
11.59
12.22
(*)
Calculated based on basic indicator approach.
111
ŞEKERBANK T.A.Ş.
COMMON EQUITY TIER I CAPITAL
Paid-in Capital to be Entitled for Compensation after All Creditors
Share Premium
Share Cancellation Profits
Legal Reserves
Other Comprehensive Income according to TAS
Profit
Net Current Period Profit
Prior Period Profit
Provisions for Possible Losses
Bonus Shares from Associates, Subsidiaries and Joint-Ventures
not Accounted in Current Period’s Profit
Common Equity Tier I Capital Before Deductions
Deductions From Common Equity Tier I Capital
Current and Prior Periods' Losses not Covered by Reserves, and
Losses Accounted under Equity according to TAS (-)
Leasehold Improvements on Operational Leases (-)
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
Unconsolidated Banks and FinancialInstitutions where the Bank
does not own 10% or less of the Issued Share Capital Exceeding
the 10% Threshold of above Tier I Capital (-)
Unconsolidated 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 (-)
Mortgage Servicing Rights Exceeding the 10% Threshold of Tier I
Capital (-)
Net Deferred Tax Assets arising from Temporary Differences
Exceeding the10% 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 Unconsolidated Banks and Financial
Institutions where the Bank Owns 10% or more of the Issued
Share Capital not deducted from Tier I Capital (-)
Current
Period
Prior
Period
1,158,000
1,278
1,090,958
240,331
106,614
102,649
3,965
-
1,087,187
4,263
883,400
200,327
224,033
223,969
64
-
2,597,181 2,399,210
70,239
34,287
11,658
22,414
39,036
-
14,437
(5,925)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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 (-)
Total Deductions from Common Equity Tier I Capital
Total Common Equity Tier I Capital
ADDITIONAL TIER I CAPITAL
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)
the BRSA (Issued or Obtained before 1.1.2014)
Additional Tier I Capital before Deductions
Deductions from Additional Tier I Capital
Direct and Indirect Investments of the Bank on its own Additional
Core Capital (-)
Owns 10% or less of the Issued Share Capital Exceeding the 10%
The Total of Net Long Position of the Direct or Indirect
Investments in Additional Tier I Capital of Unconsolidated 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 Tier I Capital
Total Additional Tier I Capital
Deductions from Tier I 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 (-)
Net Deferred Tax Asset/Liability not deducted from Tier I Capital
as per the Temporary Article 2, Clause 1 of the Regulation on
Banks (-)
Total Tier I Capital
-
-
-
-
143,562
54,434
2,453,619 2,344,776
-
-
-
-
-
-
-
-
-
-
-
-
-
-
58,554
57,748
- (23,698)
2,395,065 2,263,330
112
ŞEKERBANK T.A.Ş.
TIER II CAPITAL
the BRSA (Issued or Obtained after 1.1.2014)
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 (-)
Owns 10% or less of the Issued Share Capital Exceeding the 10%
The Total of Net Long Position of the Direct or Indirect
Investments in Additional Core Capital and Tier II Capital of
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
CAPITAL
Loans Granted against the Articles 50 and 51 of the Banking Law
(-)
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
Banks (-)
The Portion of Total of Net Long Positions of the Investments in
Equity Items of Unconsolidated 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 (-)
-
-
356,475
417,005
177,980
163,033
534,455 580,038
-
-
-
-
534,455
580,038
-
-
The Portion of Total of Net Long Positions of the Investments in
Equity Items of Unconsolidated 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 Unconsolidated 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
EQUITY
Amounts lower than Excesses as per Deduction Rules
Remaining Total of Net Long Positions of the Investments in
Equity Items of Unconsolidated 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 Unconsolidated Banks and
Financial Institutions where the Bank Owns more than 10% or
less of the Tier I Capital
Remaining Mortgage Servicing Rights
-
-
2,890,626 2,800,841
-
-
-
-
Components of items of shareholders’ equity subject to temporary applications
8,006
8,999
23,088
23,088
7,800
10,440
-
-
Debt Instruments and the Related
Issuance Premiums Defined by the BRSA
(Issued before 1.1.2014)
Amount Included in
Equity Calculation
Total Amount
356,475
494,736
Current Period
KFW
EBRD (European
EBRD (European
(KREDİTANSTALT
EFSE (European
EFSE (European IFC (International
Bank for
Bank for
FÜR
Fund For
Fund For
Finance
Reconstruction
ECO Trade and
Reconstruction
WİEDERAUFBAU) Southeast Europe) Southeast Europe)
Corporation) and Development) Development Bank and Development)
Regulation on
Regulation on
Regulation on
Regulation on
Regulation on
Regulation on
Regulation on
Equity of Banks
Equity of Banks
Equity of Banks
Equity of Banks
Equity of Banks
Equity of Banks
Equity of Banks
(Published in the
(Published in the
(Published in the
(Published in the
(Published in the
(Published in the
(Published in the
Official Gazette
Official Gazette
Official Gazette
Official Gazette
Official Gazette
Official Gazette
Official Gazette
Nr. 28756 dated 5 Nr. 28756 dated 5 Nr. 28756 dated 5 Nr. 28756 dated 5 Nr. 28756 dated 5 Nr. 28756 dated 5 Nr. 28756 dated 5
September 2013) September 2013) September 2013) September 2013) September 2013) September 2013) September 2013)
Regulatory treatment
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Valid on
Valid on
Valid on
Valid on
Valid on
Valid on
Valid on
Consolidated and Consolidated and Consolidated and Consolidated and Consolidated and Consolidated and Consolidated and
Unconsolidated
Unconsolidated
Unconsolidated
Unconsolidated
Unconsolidated
Unconsolidated
Unconsolidated
Basis
Basis
Basis
Basis
Basis
Basis
Basis
Subordinated Loan Subordinated Loan Subordinated Loan Subordinated Loan Subordinated Loan Subordinated Loan Subordinated Loan
4.1
38.2
25.4
104.7
83.8
20.9
79.4
12.7
47.8
31.8
145.9
116.7
29.2
110.6
347
347
347
347
347
347
347
30.06.2008
07.09.2012
30.09.2013
30.09.2013
30.09.2013
27.12.2013
30.12.2013
Time
Time
Time
Time
Time
Time
Time
25.06.2018
07.09.2022
29.09.2023
15.12.2023
29.09.2023
27.12.2023
27.12.2023
Yes
Yes
Yes
Yes
Yes
Yes
Yes
15,000
10,000
50,000
40,000
10,000
37,900
07.09.2017
28.09.2018
28.09.2018
28.09.2018
27.12.2018
27.12.2018
Coupons / dividends
Fixed or floating dividend/coupon
Fixed
Floating
Floating
Floating
Floating
Floating
Floating
Coupon rate and any related index
6m Euribor +
6m Euribor +
6m Libor +
6m Libor +
6m Libor +
6m Libor +
2% p.a.
4.25% p.a.
5.25% p.a.
5.25% p.a.
5.25% p.a.
5.25% p.a.
6.50% p.a.
Existence of a dividend stopper
Fully discretionary, partially discretionary or mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Existence of step up or other incentive to redeem
2% step-up for
2% step-up for
2% step-up for
2% step-up for
2% step-up for
2% step-up for
interest if the loan interest if the loan interest if the loan interest if the loan interest if the loan interest if the loan
is not repaid at the is not repaid at the is not repaid at the is not repaid at the is not repaid at the is not repaid at the
- end of the 5th year end of the 5th year end of the 5th year end of the 5th year end of the 5th year end of the 5th year
Noncumulative or cumulative
Noncumulative
Noncumulative
Noncumulative
Noncumulative
Noncumulative
Noncumulative
Noncumulative
Convertible or non-convertible
If convertible, conversion trigger (s)
If convertible, fully or partially
If convertible, conversion rate
If convertible, mandatory or optional conversion
If convertible, specify instrument type convertible into
If convertible, specify issuer of instrument it converts int
Write-down feature
If write-down, write-down trigger(s)
If write-down, full or partial
If write-down, permanent or temporary
If temporary write-down, description of write-up mechanism
Position in subordination hierarchy in liquidation (specify instrument type immediately Before core capital, Before core capital, Before core capital, Before core capital, Before core capital, Before core capital, Before core capital,
senior to instrument)
aftter all creditors aftter all creditors aftter all creditors aftter all creditors aftter all creditors aftter all creditors aftter all creditors
Whether conditions which stands in article of 7 and 8 of Banks’ shareholder equity law
are possessed or not
Yes
Yes
Yes
Yes
Yes
Yes
Yes
According to article 7 and 8 of Banks' shareholders equity law that are not possesed
8-2-(a), (ç), ( e), (ğ) 8-2-(a), (ç), (e), (ğ) 8-2-(a), (ç), ( e), (ğ) 8-2-(a), (ç), (e), (ğ) 8-2-(a), (ç), (e), (ğ) 8-2-(a), (ç), (e), (ğ) 8-2-(a), (ç), (e),(ğ)
Instrument type
Amount recognised in regulatory capital (Currency in million TRL, as of most recent
reporting date)
Par value of instrument (Million TRL)
Accounting classification
Original date of issuance
Demand or time
Original maturity date
Issuer call subject to prior supervisory approval
Optional call date, contingent call dates and redemption amount
Subsequent call dates, if applicable
Subject to 10% deduction as of 1/1/2015
Eligible on Unconsolidated/ consolidated / both unconsolidated and consolidated
İssuer
Unique identifier (eg CUSIP, ISIN or Bloomberg identifier for private placement)
Governing law(s) of the instrument
Details on Subordinated Liabilities:
ŞEKERBANK T.A.Ş.
113
114
ŞEKERBANK T.A.Ş.
The Bank, within the framework of its capital adequacy assessment process,
determines limits for risks (credit risk, market risk and operational risk) covered
under the Capital Adequacy calculations as well as for risks (concentration risk,
interest rate risk in the banking book, liquidity risk, etc.) which are not covered
under these calculations. Thus, the Bank determines its “Risk Limits” and with the
help of these limits and by means of applying stress tests and scenario analyses, it
evaluates the adequacy of its capital level against a background of its current and
also projected activities.
The Bank determines “Key Risk Indicators” as “early warning signals” within the
context of the “Risk Limits”. Both the “Risk Limits” and “Key Risk Indicators” are
determined by taking into consideration the Bank’s annual budget and strategy;
its risk appetite; the volume, qualifications and complexity of its products/services;
its experience and prior performance as well as the market conditions. The “Risk
Limits” and “Key Risk Indicators” are determined through risk based amounts
and nominal amounts. In this scope, regulatory limits and applications, Basel
Committee applications, international best practices, concentrations and tolerance
levels as well as criteria based on the Bank’s capital levels are used. In any case, the
“Risk Limits” and “Key Risk Indicators” cannot violate the Banking Law and related
regulations.
The “Risk Limits” and “Key Risk Indicators” are reviewed and revised at least
annually by the senior management with respect to market conditions and
changes in the Bank’s strategies. The review process aims to determine whether
the current “Risk Limits” and “Key Risk Indicators” are meaningful and sufficient
enough compared to the Bank’s risk appetite. The revised “Risk Limits” and “Key
Risk Indicators” all take effect upon the approval of the Board of Directors.
II. Explanations Related to Credit Risk
Credit risk is the possibility of loss that the Bank may face, in the event that the
counter party fails to fulfil wholly or partly of its obligations in a timely manner, by
breaching of its contractual obligations.
The Bank’s lending activities are executed in line with the legislation and in
accordance with the policies and procedures approved by the Bank’s Board of
Directors under the principle of “segregation of duties” throughout marketing,
allocation, monitoring, controlling and auditing activities.
Credit allocation is performed on a debtor or a debtor group basis within certain
limits. These are determined within a framework of authorisation limits, set in
line with the legislation, for the Board of Directors, Credit Committee, Head Office
Credit Allocation Council (as of January 2015 this Committee has been abolished),
General Manager, Assistant General Managers (Corporate and Commercial
Banking, Retail Banking, Financial Institutions), Regional Office Managers, Regional
Office Credit Committee as well as the Branch Credit Committees, and are
approved taking into consideration the financial position and needs of the credit
customer.
The rating / scoring systems are effectively used in credit allocation. As per the
Bank’s credit policies, limits and collaterals are regarded as risk mitigating factors
complementary to each other. As provided by the “Regulation on the Procedures
and Principles for Determination of Qualifications of Loans and Other Receivables
by Banks and Provisions to Be Set Aside”, credit qualities of the debtors are
regularly monitored, and credit limits are revised once a year or whenever deemed
necessary parallel to the economic conditions. The majority of the statements of
accounts received for loans are derived from audited financial statements. The
Bank also receives sufficient amounts of collateral for loans and other receivables.
These can be in the form of guarantees, mortgages on real estates, cash blockage
or cheques depending on the customer’s financial structure and the type of the
credit facility.
The Board of Directors has approved concentration limits by industries, regions,
debtors / debtor groups monitored on a regular basis; all of which are reviewed
and revised at least once a year, with respect to market conditions and changes in
the Bank’s strategies.
Since the volume of prolonged and restructured loans and other receivables are
not material with regard to the Bank’s financial statements, no additional followup methodology is needed to be developed in addition to those specified in the
legislation.
Within the framework of the capital adequacy calculations, indemnified non-cash
loans are subject to the same risk weighting treatment as overdue loans.
There are transaction limits as well as dealer limits by transaction types approved
by the Board of Directors regarding the counterparty risk arising from the Bank’s
on-and off-balance sheet transactions monitored on a daily basis. The limits of
correspondent banks allocated according to their credit qualities are controlled
on a daily basis, while risk concentration is monitored systematically. When
reverse positions of open positions are required in order to minimize potential
risks, positions are closed through the use of derivative transactions aiming at risk
downsizing.
The Bank prefers to take country risk only for those financial institutions and
countries regarded at investment level by the international rating agencies and
thus, do not have the risk of failing to fulfil their minimum liabilities. Therefore, the
related potential risks do not constitute any material risk factor with regards to the
Bank’s financial structure.
When evaluated together with financial activities of other financial institutions,
the Bank, as an active participant in the international banking environment, has no
significant credit risk concentration.
Cash loans are classified and provided provision in accordance with the regulation
on “Methods and Principles for the Determination of Loans and Other Receivables
to be Reserved for and Allocation of Reserves”:
- due period from 90 days up to 179 days “Loans and receivables with limited
collectability”
- due period from 180 days up to 359 days “Loans and receivables with doubtful
collectability”
- due period from 360 days and higher “Uncollectible loans and receivables”.
115
ŞEKERBANK T.A.Ş.
period income statement by the Bank. The provisioning amount for nonperforming loans are determined by the Bank’s management for compensating
the probable losses of the doubtful loan portfolio, by evaluating the quality of loan
portfolio, risk factors and considering the economy conditions, other facts and
related regulations.
As of 31 December 2015, the receivables of the Bank from its top 100 cash loan
customers amount to TRL 4,181,577 Thousand (31 December 2014 – TRL 3,228,725
Thousand) with a share of 25.70 % in the total cash loans (31 December 2014–
22.52 %). The receivables of the Bank from its top 200 cash loan customers
amount to TRL 5,078,573 Thousand (31 December 2014 – TRL 4,047,465 Thousand)
with a share of 31.21 % (31 December 2014 - 28.24 %) in the total cash loans.
the BRSA.
As of 31 December 2015, the receivables of the Bank from its top 100 non-cash loan
Thousand) with a share of 43.95 % in the total non-cash loans (31 December 2014
– 39.37 %).The receivables of the Bank from its top 200 non-cash loan customers
with a share of 54.55 % (31 December 2014 – 50.40 %) in the total non-cash loans.
Total amount of exposures after offsetting specific provisions before credit risk
mitigation adjustments and the risk-weighted exposure amounts classified in
different risk groups and types according to the Basel II, are disclosed below for
the relevant period:
Risk types
Contingent and Non-Contingent Claims on Regional
Governments and Local Authorities
Contingent and Non-Contingent Claims on
Administrative Units and Non-commercial Enterprises
Contingent and Non-Contingent Claims on Multilateral
Development Banks
Contingent and Non-Contingent Claims on International
Organizations
Contingent and Non-Contingent Claims on Banks and
Capital Market Intermediary
Contingent and Non-Contingent Claims on Corporate
Receivables
Contingent and Non-Contingent Claims Included in the
Regulatory Retail Portfolios
Contingent and Non-Contingent Claims Secured by
Residential Property
Past Due Loans
Undertakings for Collective Investments in Transferable
Securities
Other Claims
Total
Risk
Amount (*)
5,642,993
Total Risk
Weighted
Assets (**)
7,682
74,025
13,696
8,043
6,364
-
-
-
-
244,279
169,692
8,311,210
7,558,004
5,627,482
4,082,252
5,022,548
293,036
1,058,613
-
4,156,694
264,164
2,026,890
-
1,705,546
27,987,775
1,466,698
19,752,136
(*)
The figures represent total risk amounts after credit conversion factor and before credit risk
mitigation.
(**)
Total risk weighted assets are the arithmetical monthly average amounts in 2015.
As of 31 December 2015, the share of cash and non-cash receivables of the Bank
from its top 100 customers in total balance sheet and off-balance sheet assets is
1.37 % (31 December 2014 – 1.28 %).The share of cash and non-cash receivables of
the Bank from its top 200 customers in total balance sheet and off-balance sheet
assets is 1.68 % (31 December 2014 – 1.61 %).
As of 31 December 2015, the general loan loss provision related with the credit
risk taken by the Bank is TRL 177,980 Thousand (31 December 2014 – TRL 163,033
Thousand).
-
-
USA, Canada
Other Countries
Associates, Subsidiaries and
Entities Under Common
Control (Joint Vent.)
Unallocated Assets/
Liabilities(**)
74,025
-
-
-
-
-
-
-
-
-
-
-
-
-
-
62,368
-
-
5,672
-
-
-
-
-
-
-
5,672
-
-
-
-
-
-
-
-
-
(**)
OECD countries other than EU countries, USA and Canada
Assets and liabilities that are not distributed according to specific bases.
4,535,602
Unallocated Assets/
Liabilities(**)
Total
-
Associates, Subsidiaries and
Entities Under Common
Control (Joint Vent.)
-
-
-
-
-
Off-shore Banking Regions
USA, Canada
-
-
Other Countries
-
-
62,368
European Union Countries
4,535,602
Contingent
and NonContingent
Claims on
Sovereigns
-
-
-
-
-
-
-
-
-
244,279
-
-
1,529
9,628
1,443
9,803
31,165
190,711
8,311,210
-
-
-
-
13
6,238
61
8,304,898
-
-
-
-
-
-
-
-
-
251,985
-
-
5,045
9,857
1,523
7,269
45,579
182,712
7,130,617
-
-
-
-
-
5,363
209
7,125,045
Contingent
Contingent
Contingent
and NonContingent
and Nonand NonContingent
and NonContingent
Contingent Contingent
Contingent
Claims on
Contingent
and NonClaims on
and NonClaims on
Claims on
Contingent
Banks and Contingent
Regional Administrative
Claims on
Capital
Claims on
Governments Units and Non- Multilateral
commercial Development International
Market
Corporate
and Local
Authorities
Enterprises
Banks Organizations Intermediary Receivables
OECD Countries (*)
Domestic
Prior Period
(*)
8,043
-
-
-
-
-
-
-
8,043
(**)
(*)
5,642,993
-
Total
-
-
-
-
74,025
5,642,993
OECD Countries (*)
Domestic
Current Period
Contingent
and NonContingent
Claims on
Sovereigns
Contingent
Contingent
Contingent
Contingent
and Nonand Nonand Nonand NonContingent
Contingent
Contingent
Contingent
and NonClaims on
and NonClaims on
Claims on
Claims on
Contingent
Claims on
Capital
Claims on
and Local
Market
Corporate
Authorities
Enterprises
Risk Profile According to Geographical Concentrations:
Geographical concentration of the significant risks in the significant areas as follows;
5,022,548
4,903,141
-
-
235
-
644
379
1,460
4,900,423
Contingent
and NonContingent
Claims
Included
in the
Regulatory
Retail
Portfolios
-
-
140
68
881
652
3,868
5,016,939
Contingent
and NonContingent
Claims
Secured by
Residential
Property
4,628,802
-
-
115
90
971
710
3,001
4,623,915
Contingent
and NonContingent
Claims
Secured by
Residential
Property
Risk Types
5,627,482
-
-
155
29
759
317
3,052
5,623,170
Contingent
and NonContingent
Claims
Included
in the
Regulatory
Retail
Portfolios
Risk Types
1,058,613
-
-
50
-
39
24
102
1,058,398
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
215,662
-
-
-
-
-
-
-
215,662
1,200,795
-
-
-
-
-
-
-
1,200,795
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
993,048
111,524
123,309
-
7,083
-
585
993,048
111,524
125,183
9,726
10,218
17,034
38,833
469,997 26,682,209
Other
Claims
Total
1,128,861
107,524
9
-
7,083
-
585
1,128,861
107,524
5,404
9,947
10,221
13,721
50,834
350,429 23,202,623
- 1,594,491 24,529,135
-
-
-
-
-
-
-
-
Other
Claims
- 1,705,546 27,987,775
-
-
-
-
-
-
-
-
Undertakings
Higher-Risk Collateralized
Short-Term for Collective
Categories
Mortgage
Claims on Investments in
Past Due Defined by
Marketable Securitization Banks and Transferable
Loans
Agency
Securities
Exposures Corporate
Securities
293,036
-
-
-
1
-
-
-
293,035
Undertakings
Mortgage
Categories
Marketable Securitization Banks and Transferable
Past Due Defined by
Agency
Securities
Exposures Corporate
Securities
Loans
ŞEKERBANK T.A.Ş.
116
-
Fishery
-
Electricity, Gas and Water
-
Transportation and Communication
-
Education Services
Health and Social Services
Total
5,642,993
2,932
-
Professional Employment
Other (*)
-
Real Estate and Renting Services
5,640,061
-
Hotel, Food and Beverage Services
-
5,640,061
Wholesale and Retail Trade
Services
-
-
Manufacturing
Construction
-
Mining and Quarrying
-
-
Industry
-
Forestry
-
Farming and Livestock
Agricultural
Current Period
Contingent
and NonContingent
Claims on
Sovereigns
74,025
74,025
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,043
5,094
757
65
-
-
-
867
-
602
2,291
-
13
641
-
654
-
-
4
4
Contingent
Contingent
Contingent
Claims on
Claims on
Governments Units and Nonand Local
commercial
Authorities
Enterprises
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Contingent
and NonContingent
Claims on
Multilateral
Development
Banks
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Contingent
and NonContingent
Claims on
International
Organizations
Risk Profile According to Counterparty and Sector Concentrations
244,279
-
-
-
-
-
244,279
-
-
-
244,279
-
-
-
-
-
-
-
-
-
Contingent
and NonContingent
Claims on
Banks and
Capital
Market
Intermediary
8,311,210
730,121
134,624
12,679
-
698,432
532,700
297,279
347,469
1,336,432
3,359,615
1,623,303
160,789
2,261,964
114,707
2,537,460
3,789
5,735
51,187
60,711
Contingent
and NonContingent
Claims on
Corporate
Receivables
5,627,482
632,736
32,029
10,133
-
255,082
6,484
193,016
48,756
1,299,479
1,844,979
454,103
3,479
915,702
40,315
959,496
5,558
2,009
1,728,601
1,736,168
Contingent
and NonContingent
Claims
Included
in the
Regulatory
Retail Portfolios
5,022,548
403,355
113,813
12,820
-
340,773
21,927
197,192
603,806
867,870
2,158,201
1,064,046
11,915
673,846
24,061
709,822
2,026
3,790
681,308
687,124
Contingent
and NonContingent
Claims
Secured by
Residential
Property
Risk Types
293,036
40,999
3,502
213
-
8,369
1
5,791
2,516
94,171
114,563
49,215
587
65,055
1,920
67,562
318
90
20,289
20,697
1,058,613
873,302
3,364
2,446
-
9,132
161
9,580
1,241
48,704
74,628
35,779
38
48,312
941
49,291
5
1
25,607
25,613
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Mortgage
Categories
Past Due Defined by
Marketable
Agency
Securities
Loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Claims
- 1,705,546
- 1,705,546
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Undertakings
for Collective
Short-Term
Banks and
Transferable
Securitization
Exposures
Corporate
Securities
21,356,883
3,781,221
250,288
28,129
914,939
4,125,759
518,081
489,394
3,254,484
9,581,074
2,715,129
30,901
2,664,409
79,772
2,775,082
8,704
8,848
2,486,825
2,504,377
TRL
6,630,892
686,889
37,801
10,227
396,849
2,319,854
185,644
514,394
392,774
3,857,543
511,317
145,920
1,301,111
102,172
1,549,203
2,992
2,777
20,171
25,940
FC
ŞEKERBANK T.A.Ş.
Total
27,987,775
4,468,110
288,089
38,356
-
1,311,788
6,445,613
703,725
1,003,788
3,647,258
13,438,617
3,226,446
176,821
3,965,520
181,944
4,324,285
11,696
11,625
2,506,996
2,530,317
117
-
Fishery
-
-
-
Education Services
Total
4,535,602
298
-
Other (*)
-
4,535,304
-
-
4,535,304
Services
-
-
Manufacturing
Construction
-
-
-
Industry
-
Agricultural
Forestry
-
Prior Period
Contingent
and NonContingent
Claims on
Sovereigns
62,368
62,368
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,672
4,122
127
1,414
-
-
-
-
-
-
1,541
-
-
5
-
5
-
-
4
4
Contingent
Contingent
Contingent
Claims on
Claims on
Governments Units and Nonand Local
commercial
Authorities
Enterprises
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Contingent
and NonContingent
Claims on
Multilateral
Development
Banks
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Contingent
and NonContingent
Claims on
International
Organizations
251,985
-
-
-
-
-
251,985
-
-
-
251,985
-
-
-
-
-
-
-
-
-
Contingent
and NonContingent
Claims on
Banks and
Capital
Market
Intermediary
7,130,617
683,749
130,873
16,595
-
601,355
194,053
323,626
262,910
1,194,144
2,723,556
1,484,318
83,741
2,067,382
35,909
2,187,032
242
3,618
48,102
51,962
Contingent
and NonContingent
Claims on
Corporate
Receivables
4,903,141
553,105
37,767
9,305
-
213,661
6,366
161,005
33,837
1,185,159
1,647,100
405,133
6,932
870,808
43,431
921,171
10,488
4,791
1,361,353
1,376,632
Contingent
and NonContingent
Claims
Included
in the
Regulatory
Retail Portfolios
4,628,802
663,731
100,096
14,706
-
274,239
31,380
175,981
469,072
767,467
1,832,941
905,953
22,517
699,524
32,549
754,590
1,565
4,036
465,986
471,587
Contingent
and NonContingent
Claims
Secured by
Residential
Property
Risk Types
215,662
38,609
2,190
158
-
6,274
79
4,935
835
55,173
69,644
54,203
302
38,014
3,655
41,971
143
49
11,043
11,235
Past Due
Loans
1,200,795
1,079,592
5,167
231
-
6,265
115
2,962
2,206
49,809
66,755
22,390
178
23,002
587
23,767
59
24
8,208
8,291
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Mortgage
Categories
Defined by
Marketable
Agency
Securities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Securitization
Exposures
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Claims
- 1,594,491
- 1,594,491
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Undertakings
for Collective
Short-Term
Banks and
Transferable
Corporate
Securities
18,905,741
3,944,036
243,643
31,184
-
839,015
2,894,443
484,964
316,496
2,985,050
7,794,795
2,576,790
49,069
2,537,532
103,209
2,689,810
12,279
12,518
1,875,513
1,900,310
TRL
5,623,394
736,029
32,577
11,225
-
262,779
2,124,839
183,545
452,364
266,702
3,334,031
295,207
64,601
1,161,203
12,922
1,238,726
218
-
19,183
19,401
FC
ŞEKERBANK T.A.Ş.
Total
24,529,135
4,680,065
276,220
42,409
-
1,101,794
5,019,282
668,509
768,860
3,251,752
11,128,826
2,871,997
113,670
3,698,735
116,131
3,928,536
12,497
12,518
1,894,696
1,919,711
118
119
ŞEKERBANK T.A.Ş.
Division of the Risks by Remaining Maturities:
Risk Types
Current Period
Contingent and Non-Contingent Claims on Regional Governments and Local Authorities
Contingent and Non-Contingent Claims on Administrative Units and Non-commercial Enterprises
Contingent and Non-Contingent Claims on Multilateral Development Banks
Contingent and Non-Contingent Claims on Banks and Capital Market Intermediary
Contingent and Non-Contingent Claims Included in the Regulatory Retail Portfolios
Past Due Loans
Other Claims
Total
1 month
2,019,671
320
50,032
640,007
415,031
67,245
212,639
3,404,945
Remaining Maturities
1–3 months
3–6 months 6–12 months
727
5,541
2,430
358
384
18,013
7,414
9,711
2,188,259
661,310
609,554
1,853,249
315,067
715,293
1,346,450
116,697
349,322
6,434
65,844
5,414,835
1,167,417
1,689,805
Over 1 year
2,978,566
73,911
3,240
2,307,023
1,632,599
2,848,623
879,541
6,693
10,730,196
Amounts According to Risk Weights:
Risk Weights
Current Period
Amount Before Credit Risk Mitigation
Amount After Credit Risk Mitigation
0%
5,787,096
5,948,669
10%
-
20%
124,957
124,957
50%
51,449
5,066,573
75%
8,366,159
5,497,071
100%
12,599,398
10,291,789
150%
491,013
491,013
200%
567,698
567,698
250%
2
2
Deductions from
Shareholders’
Equity
38,894
38,894
Risk Types
Prior Period
Past Due Loans
Other Claims
Total
1 month
1,965,818
45
86,128
287,668
289,175
44,899
206,023
2,879,756
1–3 months
3–6 months 6–12 months
149,381
1,478
50
1,227
932
645
815
1,756
538
1,898,175
352,056
578,794
1,662,270
317,386
708,656
1,217,429
129,396
292,795
7,137
47,809
4,936,434
850,813
1,581,478
Over 1 year
2,113,659
61,807
1,102
749
2,129,320
1,276,812
2,665,411
1,087,370
9,336,230
Risk Weights Prior Period
0%
4,729,964
4,896,425
10%
-
20%
162,384
143,612
50%
49,915
4,660,604
75%
7,003,833
4,780,834
100%
11,382,245
8,846,866
150%
321,711
321,711
200%
879,053
879,053
1250%
32
32
Deductions from
Shareholders’
Equity
42,527
42,527
120
ŞEKERBANK T.A.Ş.
Information According to Counterparty and Sector Concentrations
Impaired Credits are the credits that either overdue more than 90 days as of the
reporting date or are treated as impaired due to their creditworthiness. For such
credits, “specific provisions” are allocated as per the Provisioning Regulation.
Past Due Credits are the credits that overdue up to 90 days but not impaired. For
such credits, “general provisions” are allocated as per the Provisioning Regulation.
are reversed from the “Provision for Loans and Other Receivables” account in
the income statement. The collections related to loans written off or provisioned
in prior years are recorded to “Collections Related to the Prior Period Expenses”
under “Other Operating Income” account and related interest income is credited
to the “Interest Received from Non-performing Loans” account.
Loans
Current Period
Impaired
Loans (**)
Past Due
Value
Loans Adjustments (*) Provisions (**)
Significant Sectors/
Counterparties
Agricultural
Forestry
Fishery
Industry
Manufacturing
Construction
Services
Hotel, Food and Beverage
Services
Transportation and
Communication
Real Estate and Renting
Services
Education Services
Other
Total
72,030
140,603
4,791
30,227
71,099
140,066
4,773
29,843
225
12
-
-
706
525
18
384
209,532
131,278
4,473
97,016
5,300
2,449
83
2,493
203,280
126,884
4,324
94,158
952
1,945
66
365
174,718
223,571
7,618
91,674
445,871
376,239
12,820
253,600
315,576
183,400
6,249
178,573
6,540
25,276
861
3,594
28,080
52,052
1,774
13,718
234
1,391
47
119
27,283
61,138
2,083
11,355
-
-
-
-
3,117
1,255
43
708
65,041
51,727
1,763
45,533
109,483
222,703
7,588
73,443
1,011,634 1,094,394
37,290
545,960
Contains General Loan Loss Provision amount
Non performing loans classified as “Financial assets at fair value through profit and
loss”amounting to TRL 2,209 Thousand and Specific provision amounting to TRL 1,274 Thousand
in the current period.
(*)
(**)
Prior Period
Significant Sectors/
Counterparties
Agricultural
Forestry
Fishery
Industry
Manufacturing
Construction
Services
Hotel, Food and Beverage
Services
Transportation and
Communication
Real Estate and Renting
Services
Education Services
Other
Total
Loans
Impaired Past Due
Value
Loans (**)
Loans Adjustments (*) Provisions (**)
41,522
40,903
194
425
160,122
7,843
151,528
751
166,750
369,840
244,189
73,859
73,206
234
419
179,507
7,491
171,074
942
113,386
429,013
256,401
2,636
2,613
8
15
6,408
267
6,107
34
4,048
15,315
9,153
25,757
25,519
238
99,515
3,685
95,378
452
95,273
225,425
143,669
5,380
11,268
402
2,906
18,422
235
47,416
1,545
1,693
55
11,754
155
34,378
581
66,655
103,827
842,061
43,856
3,201
65,326
219,056
1,014,821
1,566
114
2,332
7,821
36,228
23,064
434
43,443
74,141
520,111
Contains General Loan Loss Provision amount
loss”amounting to TRL 3,931 Thousand and Specific provision amounting to TRL 2,371 Thousand
in the prior period.
(*)
(**)
Information related with Value Adjustments and Loan Loss Provisions
Current Period
Specific Provision (**)
General Loan Loss
Provision
P Prior Period
Specific Provision (**)
General Loan Loss
Provision
Openning Charge of
Provision
Other Closing
Balance the Period Cancelations(*) Adjustments Balance
520,111
360,974
(335,125)
- 545,960
163,033
44,675
(29,728)
-
177,980
Openning Charge of
Provision
Other Closing
Balance the Period Cancelations (*) Adjustments Balance
370,056
296,314
(146,259)
520,111
135,209
43,021
(15,197)
-
163,033
Includes provision cancelations of non-performing loans classified in the related period.
(**)
Specific provision amounting to TRL 1,274 Thousand for loans classified as “Financial assets
at fair value through profit and loss” at the current period (31 December 2014- TRL 2,371
Thousand).
(*)
121
ŞEKERBANK T.A.Ş.
Credit Rating System
III. Explanations Related to Market Risk
The Bank effectively applies internal rating / scoring models in its credit allocation
processes. In this context, various rating and scoring models are used in the credit
risk assessment of diffferent clusters of customers: the rating model is applied
for corporate / commercial customers, the scoring models are customized for
the SMEs and for the micro-enterprises. Other scoring models are also in use for
retail loans and credit cards. All these models are reviewed and redeveloped on a
regular basis in line with the historical data analysis.
Market risk is the possibility of loss that the Bank may face, in its trading books
value arising from movements in market prices.
Current Period
Rating
Explanation
Loans
Non-cash loans
AAA
Very High quality
200,630
418,886
Total risk
619,516
AA
High quality
230,899
396,687
627,586
A
Good quality
473,571
376,441
850,012
BBB
Quality
BB
Medium Quality
B
Low Quality
CCC
Very low quality
CC
Very very low quality
1,996,350
330,146
2,326,496
C
Substandard
1,403,657
405,386
1,809,043
791,681
145,424
937,105
398,340
5,412,205
D
Other
Highly substandard
669,012
652,485
1,321,497
1,907,292
1,040,779
2,948,071
1,801,151
638,400
2,439,551
1,783,783
959,807
2,743,589
5,013,865
(*)
Total
16,271,891
5,762,781 22,034,671
(*)
Relevant scoring model is applied to those customers whose annual turnover does not
exceed TRL 10 million.
Prior Period
Rating
Explanation
Loans
Non-cash loans
Total risk
AAA
Very High quality
139,184
410,596
549,780
AA
High quality
247,265
301,278
548,543
A
Good quality
408,682
471,158
879,840
BBB
Quality
BB
Medium Quality
B
CCC
760,217
534,235
1,294,452
1,282,046
966,367
2,248,413
Low Quality
2,037,197
954,438
2,991,635
Very low quality
1,359,280
573,554
1,932,834
CC
1,286,377
450,990
1,737,367
C
Substandard
1,288,723
369,114
1,657,837
D
Highly substandard
857,675
111,975
969,650
Other (*)
4,666,483
447,981
5,114,464
Total
14,333,129
5,591,686 19,924,815
RElevant scoring model is applied to those customers whose annual turnover does not
exceed TRL 5 million and/or credit limit does not exceed TRL 500 Thousand.
(*)
The Bank’s policies and procedures related to market risk are in line with the
“Regulation on Internal Systems of Banks” and the “Regulation on Measurement
and Evaluation of the Capital Adequacy of Banks” and approved by the Bank’s
Board of Directors.
The Board of Directors has approved both nominal-based limits (transaction,
dealer, desk and stop-loss limits) and risk-based limits (Value-at-Risk limits)
monitored on a daily basis; all of which are reviewed and revised at least once a
year, with respect to market conditions and changes in the Bank’s strategies.
Within the context of Capital Adequacy, the Bank’s market risk exposure is
calculated through the use of the “Standard Method” in line with the legislation.
In these calculations, the Bank’s on- and off-balance sheet trading book items
covering the portfolio of trading securities, and derivatives are all taken into
consideration.
Within the Bank, market risk exposure is measured, monitored and reported on
a daily basis. In this context, “Value-at-Risk (VaR) Methods” are applied as internal
model.
Among these methods, the “Variance Covariance Method” also known as the
“Parametric Method” is used in reporting, while the “Historical Simulation” and the
“Monte Carlo Simulation” methods, on the other hand, are used for comparison,
in times when volatility increases a great extent. VaR measurements are based
on an observation period covering the last 250 workdays and a 99 % confidence
level. In “Economic Capital” measurements based on VaR, a 10-day holding period
is applied.
Additionally, stress tests and scenario analyses are applied in order to measure and
monitor the impact of adverse movements in the markets, while the effectiveness
of the Bank’s internal model is tested by using back tests on a daily basis.
122
ŞEKERBANK T.A.Ş.
Amount
(I) Capital requirement to be employed for general market risk - Standard method (*)
5,586
(II) Capital requirement to be employed for specific risk - Standard method
4,429
Standard method for specific risk of necessary capital requirement on securitization positions
-
(III)Capital requirement to be employed for currency risk - Standard method
2,716
(IV)Capital requirement to be employed for commodity risk - Standard method
-
(V)Capital requirement to be employed for settlement risk - Standard method
-
(VI)Total capital requirement to be employed for market risk resulting from options–Standard
method
1,694
(VII)Counterparty credit risk capital requirement - Standard method
16,826
(VIII) Total capital requirement to be employed for market risk in banks using risk
measurement model
-
(IX) Total capital requirement to be employed for market risk (I+II+III+IV+V+VI+VII+VIII)
31,251
(X) Market Value at Risk (12,5 x VIII) or (12,5 xI X)
390,638
(*)
Capital requirement for general market risk and specific risk which is related to the Ordinary
Investment Partnerships’ positions under special approach scope, is shown under Capital
requirement to be employed for general market risk.
Average market risk table calculated at the end of the months during the period:
Current Period
Prior Period
Average Maximum Minimum Average Maximum Minimum
Interest Rate Risk (**)
Equity Risk (*)
Currency Risk
10,704
13,420
9,994
12,582
13,344
-
-
-
-
-
2,376
-
5,281
18,063
4,655
13,014
26,682
17,688
Commodity Risk
-
-
-
-
-
-
Settlement Risk
-
-
-
-
-
-
Option Risk
809
300
943
788
367
295
19,644
22,094
15,617
18,253
18,112
13,539
Total Value Subject to Risk 455,475
673,463
390,113 557,963
731,313
423,725
Counter Party Credit Risk
Market risk calculated from the investment funds is shown under equity risk.
Investment Partnerships’ positions under special approach scope is shown under interest rate
risk
(*)
These limits are monitored through the system and limit excisions are not allowed.
These limits as a whole or on a country or counter party basis are revised at least
once a year or when deemed necessary under the global market conditions, and
submitted to the Board of Directors for approval.
Explanation Related to Counter Party Risk
In the event that the rating of a country declines below the acceptable levels
determined in the Bank’s risk management policy approved by the Board of
Directors, country limits are reset in the system, ensuring that no additional risk
is taken in that country. In cases where the developments are negative but the
rating remains the same, it is evaluated whether the country risk should be taken
or not; if appropriate, it is ensured that no risk other than the current risk is taken.
In that case, the country limits assigned to that country in the system are closed
to new transactions in order to prevent an additional exposure, while, in relation
to the current exposure, the guarantee of the transaction is reinforced in cases
where possible. In cases where this is not possible, however, it is ensured that the
exposure is disposed of by searching the opportunities to distribute/sell it. The
guarantees acquired from the supra national organizations (EBRD, IFC, World
Bank, etc.) can be used to mitigate the country risk.
In case of various negative developments in a counterparty institution, the said
developments are evaluated, and the counterparty limits are reset in the system,
ensuring that no additional risk is taken for that institution. In relation to the
current risk, on the other hand, the guarantee of the transaction is reinforced
if possible, in line with the general loan process of the Bank. Besides, the bank/
financial institution is contacted in order to mitigate the current exposure; efforts
are made to obtain collateral guarantees and close the exposure before its
maturity. The guarantees from the supra national organizations (EBRD, IFC, World
Bank, etc.) and the other banks/financial institutions that are highly creditable to
the Bank for the bank/financial institution subject to risk can be used to mitigate
the counterparty risk. The risk of the bank / financial institutions may be mitigated
through the guarantee of another bank / financial institution operating in the same
country with that bank / financial institution or in a different country.
Explanation Related to Counter Party Risk
Collateralise Support Annex (CSA) is designed as an attachment of derivative
agreements signed with counterparties (ISDA) as counterparty risk mitigation tool.
According to indemnification agreement, market value of derivative instruments
is determined on a daily basis and the amount of collateral that has to be hold is
determined according to the market value of derivative instruments.
Counter party credit risk is the possibility of a loss that the Bank may face, in
the event that the counter party to a transaction could default before the final
settlement of the transaction’s cash flows.
Collateral balances are followed under “Guarantees received” accounts when
guarantees are taken on behalf of the Bank and followed under “Guarantees given”
accounts when guarantees are possessed in the counterparty account.
(**)
The Bank sets country limits and counter party limits in order to limit its
concentration by means of limiting maximum risk per each country and counter
party. These limits are determined by means of evaluating the Bank’s current
and targeted foreign trade volume and treasury needs, and take effect upon the
decree of the Board of Directors. Within this scope, separate sublimits for Foreign
Trade and Treasury operations to be undertaken and separate limits for different
products within these two main categories are assigned. The sum of the risks to be
taken for different products in a country cannot exceed the country limit assigned
for the said country by the Board of Directors.
123
ŞEKERBANK T.A.Ş.
Information Related to Counter Party Risk
Current Period
51,938
225,104
19,023
138,263
179,639
19,582
Interest Rate Swap Agreements
Cross Currency Swap Agreements
Commodity Agreements
Stock Agreements
Other
Positive Fair Value Gross Amount
Net off Benefits
Net off Current Risk Amount
Collaterals
Net Position of Derivatives
Prior Period
100,443
229,416
16,893
141,445
165,480
31,632
IV. Explanations Related to Operational Risk
a) The amount subject to Operational Risk is calculated using Basic Indicator
Approach on annual basis, in line with the article no: 23 and 24 of Regulation on
Measurement and Assessment of Capital Adequacy of Banks. The amount for
the current period is TRL 1,962,698 Thousand (31 December 2014 - TRL 1,702,907
Thousand).
2 Prior
1 Prior
Period
Period
Amount Amount
Gross Income (GI)
1,015,166
Total/
Current Positive
Period
GI Year
Amount Numbers
980,147 1,087,404
The amount subject to
Operational Risk (Total*12.5)
3
Ratio (%)
Total
15
154,136
1,962,698
The Bank does not use the Standard Approach.
V. Explanations Related to Currency Risk
Currency risk is the possibility of loss that the Bank may face, in its total on- and
off-balance sheet accounts and positions in foreign currencies, arising from
changes in exchange rates.
Within the context of Capital Adequacy, the Bank’s currency risk exposure is
In these calculations, the Bank’s foreign currency assets and foreign currency
liabilities together with the forward transactions and gold position are all taken
into consideration.
Within the Bank, currency risk exposure is measured, monitored and reported on
model.
is applied.
As of 31 December 2015, the Bank's balance sheet short position is TRL 2,487,802
Thousand (31 December 2014 – TRL 2,034,749 Thousand short) and the long off
balance sheet position amounts to TRL 2,475,373 Thousand (31 December 2014 TRL 2,037,455 Thousand long), resulting in total net short position of TRL 12,429
Thousand (31 December 2014 - TRL 2,706 Thousand total net long).
The announced current foreign exchange buying rates of the Bank at 31 December
2015 and the previous five working days in full TRL are as follows:
24.12.2015 25.12.2015 28.12.2015 29.12.2015 30.12.2015
31.12.2015
USD
2.9187
2.9123
2.9157
2.9084
2.9076
2.9181
CHF
2.9510
2.9425
2.9445
2.9368
2.9278
2.9354
GBP
4.3414
4.3439
4.3417
4.3141
4.3007
4.3181
100 JPY
2.4189
2.4146
2.4133
2.4098
2.4078
2.4180
EURO
3.1968
3.1904
3.2006
3.1921
3.1776
3.1838
The Bank’s policies and procedures related to currency risk are in line with the
Board of Directors.
The simple arithmetic averages of the major current foreign exchange buying
rates of the Bank for the thirty days before 31 December 2015 are as follows:
The Board of Directors has approved limits (position limits, stop-loss limits)
compliant with the regulatory “Foreign Exchange Net General Position / Equity
Standard Ratio” and based on the Bank’s capital. These limits are monitored on a
daily basis and reviewed and revised at least once a year, with respect to market
conditions and changes in the Bank’s strategies.
USD
2.9177
CHF
2.9269
Monthly Average
Foreign Exchange Rate
GBP
4.3692
100 JPY
2.3930
EURO
3.1765
124
ŞEKERBANK T.A.Ş.
Information on the foreign currency risk of the Bank: Foreign Currencies
EUR
USD
Other
Total
Current Period
Assets
Cash (Cash in Vault, Foreign Currency
Cash, Money in Transit, Cheques
Purchased) and Balances with the
Central Bank of Turkey
414,444
Due From Other Banks and Financial
Institutions
36,370
Financial Assets at Fair Value Through
Profit and Loss
1,370,406 448,687
9,287
23,706
2,233,537
69,363
1,940
5,868
-
7,808
Money Market Placements
-
-
-
-
Financial Assets Available-For-Sale
-
-
-
-
899,651 2,664,308
1,456
3,565,415
Loans
Subsidiaries, Associates and Entities
Under Common Control
-
7,668
-
7,668
Held-To-Maturity Investments
-
413
-
413
Tangible Assets
-
-
-
-
Intangible Assets
Other Assets
Total Assets
-
-
-
-
196,299
11,189
6,415
213,903
1,548,704 4,069,139 480,264
6,098,107
Liabilities
Bank Deposits
420,833
350
697,659
2,464,422 202,068
276,476
5,050,191
Foreign Currency Deposits
2,383,701
Money Market Borrowings
-
-
Funds Provided From Other Financial
Institutions
-
2,597,378
631,200
1,966,178
-
Securities Issued
-
-
-
-
Sundry Creditors
106,205
9,424
114,564
230,193
1,285
5,490
3,713
10,488
3,543,224 4,721,990 320,695
8,585,909
Other Liabilities
Total Liabilities
Net Balance Sheet Position
EUR
USD
(1,994,520)
(652,851)
Other
Total
159,569 (2,487,802)
Net Off-Balance Sheet Position
1,993,177
Financial Derivative Assets
2,818,608
2,470,221
638,084 (155,888)
183,753
2,475,373
5,472,582
Financial Derivative Liabilities
825,431
1,832,137
339,641
2,997,209
Non-Cash Loans
580,764
1,408,108
278
1,989,150
5,180,928
Prior Period
Total Assets
1,024,899
3,667,597 488,432
Total Liabilities
2,999,002
3,899,891
316,784
(1,974,103)
(232,294)
171,648 (2,034,749)
Non-Cash Loans
1,971,734
229,466 (163,745)
2,694,941 2,553,200 103,002
7,215,677
2,037,455
5,351,143
723,207
2,323,734
266,747
3,313,688
455,141
1,411,597
178
1,866,916
About Currency Risk Table as of 31 December 2015;
The principal amount of currency indexed loans amounting TRL 849,568 Thousand and accruals
amounting TRL 142,735 Thousand are shown under loans.
According to the regulation about Foreign Currency Net General Position / Equity Standard
Ratio Calculation, Foreign Currency amounts that are not shown in the present currency risk
table are as follows:
Derivative Financial Assets Held-for-Trading: TRL 45,285Thousand
Unearned income from instalment sale of assets: TRL 1,984Thousand.
Prepaid expenses: TRL 32,250 Thousand
Derivative Financial Liabilities Held-for-Trading: TRL 35,662 Thousand
Financial Derivative Asset amount includes TRL 53,908 Thousand forward asset purchase
commitment and TRL 37,756 Thousand option contracts.
Financial Derivative Liabilities amount includes TRL 29,988 Thousand forward asset selling
Derivative Financial Assets Held-for-Trading: TRL 41,063 Thousand
125
ŞEKERBANK T.A.Ş.
Foreign currency sensitivity:
The Bank is mainly exposed to EUR and USD currencies.
The following table details the Bank’s sensitivity to a 10 % increase or decrease
in the TRL against USD and EUR. 10 % is the sensitivity rate used when reporting
foreign currency risk internally to the top management and represents
management’s assessment of the possible change in foreign exchange rates. A
positive number indicates an increase in profit or loss and equity when the TRL
appreciates against USD and EUR.
USD
EUR
Increase in
Effect on profit
currency rate in %
or loss
Effect on equity
31.12.2015 31.12.2014 31.12.2015 31.12.2014 31.12.2015 31.12.2014
10
10
(1,477)
(283)
10
10
(134)
(237)
-
The Bank’s sensitivity to foreign currency rates has not changed much during the
current period.
VI. Explanations Related to Interest Rate Risk
Interest rate risk is the possibility of loss that the Bank may face, in relation to its
structural position arising from adverse movements in interest rates.
The Bank’s policies and procedures related to interest rate risk are in line with the
Board of Directors.
Within the context of Capital Adequacy, the Bank’s interest rate risk exposure is
The Bank takes interest rate risk positions in both the trading book and banking
book. The interest rate risk arising from the trading book is evaluated within the
scope of market risk, and thus, measured, monitored, and managed in line with
market risk policies and procedures.
Within the Bank, interest rate risk exposure is measured, monitored and reported
on a daily basis. In this context, “Value-at-Risk (VaR) Methods” are applied as
internal model.
“Monte Carlo Simulation” methods, on the other hand, are used for comparison, in
times when volatility increases a great extent.
VaR measurements are based on an observation period covering the last 250
workdays and a 99 % confidence level. In “Economic Capital” measurements based
on VaR, a 10-day holding period is applied.
It is the priority of the Asset Liability Management to provide protection against
adverse movements in market interest rates. In this context, gap analyses,
duration and economic value analyses as well as sensitivity analyses are evaluated
on a weekly basis by Bank’s Asset Liability Committee. Simulations on net interest
income are performed according to macroeconomic indicator estimations in the
Bank’s budget targets, while the potential negative impact of adverse movements
in market interest rates on the financial position and cash flows is minimized
through target revisions. The Bank management monitors the market interest
rates on a daily basis, and is able to change the interest rates applied by the Bank
whenever it is necessary.
Average interest rates applied to monetary financial instruments
Current Period
Assets
Cash (Cash in Vault, Foreign Currency Cash, Money in
Transit, Cheques Purchased) and Balances with the
Due From Other Banks and Financial Institutions
Financial Assets Available-for-Sale
Loans
Held-to-Maturity Investments
Liabilities
Bank Deposits
Other Deposits
Sundry Creditors
Securities Issued
Funds Provided From Other Financial Institutions
EUR
USD
JPY
TRL
0.04
2.33
4.96
-
0.23
5.00
5.96
8.08
5.28
-
11.55
6.07
9.35
4.49
14.71
5.06
1.45
1.89
0.01
1.54
0.85
1.89
0.13
2.75
-
11.55
10.63
9.53
11.16
7.14
Prior Period
Assets
Cash (Cash in Vault, Foreign Currency Cash, Money in
Transit, Cheques Purchased) and Balances with the
Loans
Liabilities
Bank Deposits
Other Deposits
Sundry Creditors
Securities Issued
EUR
USD
JPY
TRL
0.54
2.68
5.86
-
0.33
5.63
6.19
8.08
1.97
2.24
0.14
2.79
5.27
-
11.08
6.26
9.39
5.11
15.44
4.94
2.01
2.34
0.1
1.94
10.8
10.13
9.59
10.64
6.31
126
ŞEKERBANK T.A.Ş.
Information related to the interest rate sensitivity of assets, liabilities and off-balance sheet items (based on repricing dates)
Current Period
Up to
1 Month
1-3
Months
3-12
Months
1-5
Years
5 Years Non-Interest
and Over
Bearing
Total
Assets
Cash (Cash in Vault, Foreign Currency Cash, Money in Transit,
Cheques Purchased) and Balances with the Central Bank of Turkey
154,954
-
-
-
-
2,626,222
42,518
-
-
-
-
44,088
86,606
36,212
14,743
36,489
55,989
4,722
79
148,234
2,781,176
-
-
-
-
-
-
-
207,355
473,501
479,880
361,105
194,691
7,236
1,723,768
6,559,294
1,363,679
2,628,601
5,349,790
370,527
-
16,271,891
206,332
264,961
796,597
-
413
-
1,268,303
Other Assets
249,194
4,399
-
2,294
-
1,880,101
2,135,988
7,455,859
2,121,283
3,941,567
5,769,178
570,353
4,557,726
24,415,966
Loans (*)
Total Assets
Liabilities
Bank Deposits
Other Deposits
950,374
61,992
5,431
-
-
440,889
1,458,686
7,570,252
2,959,097
1,179,930
16,128
-
1,683,540
13,408,947
2,012,699
2,006,320
6,379
-
-
-
-
Sundry Creditors
-
-
-
-
-
325,729
325,729
Securities Issued
-
698,744
170,293
320,769
-
-
1,189,806
216,986
476,192
1,939,853
85,375
179
-
2,718,585
Other Liabilities
234,912
61,000
26,570
80,560
-
2,898,472
3,301,514
10,978,844
4,263,404
3,322,077
502,832
179
5,348,630
24,415,966
Total Liabilities
Balance Sheet Long Position
-
-
619,490
5,266,346
570,174
-
6,456,010
Balance Sheet Short Position
(3,522,985)
(2,142,121)
-
-
-
(790,904)
(6,456,010)
Off-Balance Sheet Long Position
-
-
-
-
-
-
-
Off-Balance Sheet Short Position
-
-
-
-
-
-
-
(3,522,985)
(2,142,121)
619,490
5,266,346
570,174
(790,904)
-
Total Position
The Bank classified Loans and Receivables amounting to TRL 11,657 Thousand, under financial assets at fair value through profit and loss. Non performing loans classified as “Financial assets at fair
value through profit and loss”amount to TRL 2,209 Thousand and Specific provision amount to TRL 1,274 Thousand.
(*)
127
ŞEKERBANK T.A.Ş.
Prior Period
Up to 1
Month
1-3
Months
3-12
Months
1-5
Years
and Over
Bearing
Total
Assets
-
-
-
-
-
2,302,110
2,302,110
66,695
-
-
-
-
57,934
124,629
37,913
12,288
20,373
82,485
3,774
80
156,913
73,205
-
-
-
-
-
73,205
356,875
393,099
295,098
3,246
892
6,724
1,055,934
5,580,275
1,038,816
2,397,161
4,985,186
331,691
-
14,333,129
206,236
395,228
763,056
-
329
-
1,364,849
Other Assets
233,530
-
-
-
-
1,542,989
1,776,519
6,554,729
1,839,431
3,475,688
5,070,917
336,686
3,909,837
21,187,288
Loans (*)
Total Assets
Liabilities
620,166
61,675
3,007
-
-
278,323
963,171
Other Deposits
Bank Deposits
7,170,569
2,659,528
1,172,657
17,557
-
1,555,126
12,575,437
1,440,582
1,440,582
-
-
-
-
-
Sundry Creditors
-
-
-
-
-
365,801
365,801
Securities Issued
180,935
858,602
-
97,500
-
-
1,137,037
1,593,253
Other Liabilities
Total Liabilities
46,897
754,579
779,671
11,604
502
-
233,439
123,224
9,027
30,280
-
2,716,037
3,112,007
9,692,588
4,457,608
1,964,362
156,941
502
4,915,287
21,187,288
-
-
1,511,326
4,913,976
336,184
-
6,761,486
(3,137,859)
(2,618,177)
-
-
-
(1,005,450)
(6,761,486)
3,000
-
-
-
-
-
3,000
-
-
(3,000)
-
-
-
(3,000)
(3,134,859)
(2,618,177)
1,508,326
4,913,976
336,184
(1,005,450)
-
Total Position
(*)
The Bank classified Loans and Receivables amounting to TRL 22,229 Thousand, under financial assets at fair value through profit and loss. . Non performing loans classified as “Financial assets at
fair value through profit and loss”amount to TRL 3,931 Thousand and Specific provision amount to TRL 2,371 Thousand.
Interest rate sensitivity:
As of the balance sheet date, under the assumption that market interest rates change by 1 % for both the Turkish Lira and foreign currency denominated items and all
other things stay constant:
•
The Bank’s net interest income would grew by 3.03 % or by TRL 32,013 Thousand (31 December 2014- Net interest income of the Bank would grew by 2.63 % or TRL
25,696 Thousand).
128
ŞEKERBANK T.A.Ş.
In the first step, net interest income is calculated by evaluating interest rate
sensitive assets and liabilities with their original interest rates. In the second step,
interest rate sensitive assets and liabilities are evaluated under the assumption
that the market interest rates rise by a 100 bps parallel shift. The difference
constitutes the sensitivity of net interest income.
The interest rate risk of the banking book items:
The Bank may be exposed to interest rate risk in the banking book arising from:
•
•
•
•
Repricing Risk is the major source of Interest Rate Risk. It arises from the
mismatches in maturities (in instruments with fixed interest rates) and the
mismatches in repricing frequencies (in instruments with floating interest
rates) within the Bank’s assets, liabilities and interest bearing off balance sheet
items.
Yield Curve Risk arises from unanticipated changes in the relationships across
the spectrum of maturities; i.e. the slope and the shape of the yield curve.
Therefore, it exacerbates the impact stemming from the mismatches in
maturities and repricing frequencies.
Basis Risk arises from imperfect correlations in the spreads due to imperfect
adjustment of rates earned and paid on different instruments within the
Bank’s assets, liabilities and interest bearing off balance sheet items with
otherwise similar maturities or repricing frequencies.
Optionality Risk arises from the behavioural optionality embedded within the
Bank’s assets, liabilities and interest bearing off balance sheet items, differing
from their contractual maturities; such as prepayment (in part or in full) of
loans, calling of wholesale funding, and withdrawals or roll-overs of demand
deposits as well as time deposits.
The Bank’s policies and procedures related to interest rate risk are in line with the
Board of Directors.
The Board of Directors has approved Risk Limits regarding the interest rate risk
arising from the banking book, monitored on a weekly basis; all of which are
reviewed and revised at least once a year, with respect to market conditions and
changes in the Bank’s strategies. These limits are based on the Bank’s capital and
determine the acceptable level of interest rate risk by certain maturity buckets.
The Bank employs two separate approaches, i.e. “income approach” and
“economic value approach” in order to measure and monitor the impact of
interest rate risk on its income and capital. The “income approach” is employed
in order to calculate the impact of movements in market interest rates on Net
Interest Income, while the “Economic Value Approach” is employed in order to
calculate the same impact on the Economic Value of Equity. As the “Economic
Value Approach” offers a much more comprehensive view since it considers the
present value of all the future cash flows, it constitutes the base for the Bank’s
Asset Liability Management. Additionally, stress tests and scenario analyses are
applied in order to measure and monitor the changes in interest rate sensitive onand off-balance sheet items, arising from adverse movements in interest rates.
Economic valuation differences from fluctuations on interest rates, in different
currencies, are presented in the table below:
Current Period Currency
1 TRL
2 EURO
3 USD
Applied
Shock (+/- x
basis point)
+500
-400
+200
-200
+200
-200
Total (For negative shocks)
Total (For positive shocks)
Prior Period Currency
1 TRL
2 EURO
3 USD
Applied
Shock (+/- x
basis point)
+500
-400
+200
-200
+200
-200
(Gain) / Loss
(437,106)
415,148
15,302
(6,259)
(5,482)
6,226
415,115
(427,286)
(Gain) /Shareholders’
Equity – Loss/
%(15.12)
%14.36
%0.53
%(0.22)
%(0.19)
%0.22
%14.36
%(14.78)
(Gain) / Loss
(376,277)
346,626
10,395
(1,117)
(8,188)
8,999
354,508
(374,070)
Equity – Loss/
(13.43)%
12.38%
0.37%
(0.04)%
(0.29)%
0.32%
12.66%
(13.36)%
VII. Explanations Related to Stock Position Risk Due from Banking Book
Associates and subsidiaries are recorded at the cost of acquisition in the financial
statements.
Stock Investment
Stock Investment Group A
Stock Exchange Securities
Stock Investment Group B
Stock Investment Group C
Comparison
Balance Sheet Value
25,888
25,888
-
Fair Value Market Value
26,273
26,306
26,273
26,306
-
1) Types and amounts of positions traded at the exchange and sufficiently
diversified private capital portfolios and other exposures: None
2) Cumulative realized gains or losses arising from the sale or liquidation during
the period: None
3) Total unrealized gains or losses, revaluation increases of total supplementary
and core capital: None
129
ŞEKERBANK T.A.Ş.
VIII. Explanations Related to Liquidity Risk Management and Liquidity Coverage
Ratio
Liquidity risk is the possibility of a loss that the Bank may face, when there is not
sufficient cash or cash inflow to meet the cash outflow in full and also in time.
Liquidity risk may also occur when the market penetration is not adequate, when
open positions cannot be closed in time, at suitable prices and at sufficient amounts,
due to some barriers and some break-ups in the markets.
a) Information on risk capacity of the Bank, responsibilities and structure of liquidity
risk management, the Bank’s internal liquidity risk reporting, communication
between the Board of Directors and business lines on liquidity risk strategy, policy
and application:
The major policy of the Bank is to maintain an asset structure that it will be sufficient
to fulfill all its obligations through the use of liquid sources in time and in a sound
manner.
The objective of the liquidity risk management is to maintain the Bank’s financial
stability by means of maintaining the Bank’s liquidity risk exposure at measurable
and tolerable levels. Thus, it is also the objective to protect the Bank’s shareholders
from any potential loss that might arise from adverse movements in the Bank’s
liquidity position.
The Bank’s policies and procedures related to the liquidity risk are approved by the
Bank’s Board of Directors.
The major factors mentioned below are addressed in those policies and procedures:
The Oversight of the Board of Directors:
-
The Board of Directors approves policies and procedures related to the liquidity
risk, all in line with the Bank’s annual budget and the growth strategies for
medium and long term.
-
The Board of Directors determines the capital structure to cover the Bank’s
liquidity risk profile, all in line with the Bank’s annual budget and the growth
strategies for medium and long term.
-
The Board of Directors segregates the duties, authorities and responsibilities
related to measuring, monitoring, controlling, auditing and management of the
liquidity risk, through internal regulations on related committies and units.
The Oversight of the Senior Management:
-
The Bank’s senior management implements systems and standards related to
measuring, monitoring, controling, auditing and management of the liquidity
risk, with respect to its duties, authorities, and responsibility areas.
-
The Bank’s senior management takes measures to ensure the development
of technical konwledge and competencies of human resources as well as
information systems infrastructure so that the measuring, monitoring,
controling and auditing of the liquidity risk, are all executed in a sound manner.
-
The Bank’s senior management analyses potential liquidity risk which may
arise from the new banking products and services which the Bank plans to
implement.
The Board of Directors and senior management segregate the responsibilities within
the scope of the liquidity risk management among the Asset Liability Committee,
Treasury and Risk Management Units.
Accordingly, the Board of Directors set the Asset Liability Committee (ALCO) as the
senior management committee responsible for management of the Bank’s balance
sheet, usage of funds, and financial management. ALCO sets the strategies for
management of the balance sheet, funding, source planning and liquidity as well as
conducting stress tests and scenario analyses. Treasury implements these strategies
in order to manage liquidity.
The Board of Directors has accepted “Risk Limits” as part of the Bank’s policies
and procedures related to the liquidity risk. The compliance with these limits are
monitored on a regular basis; all of which are reviewed and revised (if deemed
necessary) at least once a year, with respect to the market conditions and changes
in the Bank’s strategies.
The compliance with the “Risk Limits” is a mandatory agenda item in the regular
monthly meetings of the Board of Directors.
The liquidity risk profile is analysed, monitored, and assessed by the Risk
Management Unit. The said Unit presents its findings through those assessments as
well as the compliance with the “Risk Limits” to ALCO on a weekly basis and to the
Board of Directors on a monthly basis.
b) Information on the centralization degree of liquidity management and funding
strategy and the functioning between the Bank and the Bank’s subsidiaries:
The management of liquidity has a decentralised structure. In this context, each
subsidiary executes its liquidity management function by its own units/departments/
services responsible for carrying out the function of the financial management.
Besides, the Bank provides funding to its subsidiaries in line with the regulatory limits
while also taking the market conditions into consideration.
c) Information on the Bank’s funding strategy including the policies on funding types
and variety of maturities:
Liquidity is accepted as the ability of a bank to fund increases in its assets and meet
its obligations as they come due, without incurring unacceptable losses.
In management of the Bank’s liquidity, the following factors are taken into
consideration:
-
-
-
-
-
Current and foreseen asset quality for the coming period,
Current and foreseen funding requirements for the coming period,
Creation of assets that are easily liquidated in the markets,
Creation of assets that have regular cash flows,
Diversification of funding sources, prevention of concentration.
Deposits are the foundation of the Bank’s liquidity. It is deemed essential to maintain
a stable and cost-effective deposit base.
130
ŞEKERBANK T.A.Ş.
The stickiness of the deposits are analysed in 2 separate ways:
In addition to legal liquidity coverage ratios related with the liquidity risk, the Board
of Directors has approved “Risk Limits” associated with the net worth and set the
limits for allowed possible liquidity mistmatch as percentage to the net worth for
the certain maturity buckets. The compliance with these limits are monitored on
a regular basis; all of which are reviewed and revised (if deemed necessary) at
least once a year, with respect to the market conditions and changes in the Bank’s
strategies.
-
The Bank’s liqudity risk is also assessed through the following “Risk Limits”:
The Bank acknowledges that the deposit structure in Turkish banking industry is
generally short-term; that the time deposits are rolled over frequently, and that
their real maturities are much more longer than the contractual maturities. It
is thus a fundamental that roll-over rates of time deposits are monitored on a
continuous basis.
-
With regards to the time deposits: the objective is to determine the roll-over
rates of those deposits.
With regards to the sight deposits: the objective is to determine the overall
volatiliy in those deposits in order to further determine both the “core” and
“volatile” sections as part of those deposits.
Both the time and sight deposits are also analysed based on currency types as well
as such sub-classes as savings deposits and commercial deposits.
As an indicator of the Bank’s liquidity, the concentration in the Bank’s deposit
structure as well as the breakdowns by retail/commercial deposits and by Turkish
Lira/foreign currency deposits are all monitored.
As an indicator of the market liquidity, the spread between O/N repo rates and the
average of those deposit rates of the first 10 savings banks (classified by their asset
size) is monitored.
Liquidity Risk
Cash Loans with maturities longer than 1 year (as per cash flows) / Capital
Time Deposits higher than 1 million TL / Total time deposits
In addition to these, the Bank applies liquidity risk mitigation techniques, among
which are opting for loans with a regular cash flow structure on the loan side;
opting for a “granular” deposit base on the deposit side; and diversifying the
sources of funding by regularly executing the Bank’s TL bond issues and obtaining
long-term finance resources from the financial institutions (Covered Bonds,
syndications, and other).
f) Information on the use of stress tests:
In order to measure and monitor the impact of the liquidity risk, the Bank uses
cash flow gap analyses indicating both current and future transactions. In these
analyses, it is evaluated for how long the mismatches in the maturities of assets,
liabilities and interest bearing off balance sheet items take, with respect to the
maturity buckets.
In terms of liquidity stress testing, the Bank opts for a “reverse stress testing”
procedure, in order to measure the risks arising from both the Bank’s liquidity
and the market liquidity. The use of such “reverse stress testing” enables the Bank
to determine the adverse conditions under which it might breach the liquidity
coverage ratios. Initially, it is simulated at which levels the liquidity coverage
ratios will approximately be for the next 3-year horizon. Then, the liquidity gaps
pertaining to those ratios are compared to the liquidity gaps under which the Bank
might breach the said ratios and ALCO decides on the actions to be taken for the
existing liquidity gaps based on the results of such simulations.
In cash flow gap analyses:
g) General information on urgent and unexpected liquidity situation plans:
-
-
The Bank’s O/N repo limits in Central Bank and Istanbul Stock Exchange as well
as unutilised limits are also regularly monitored. As a precaution for a worst case
scenario such as the withdrawal of the total of demand deposits, it is a principle
that the Bank maintains an unutilised limit equal to the outstanding amount of
its demand deposits. Within this scope, the ALCO sets the alternative liquidity
strategies with regards to the current market environment.
d) Information on liquidity management on the basis of currencies constituting a
minimum of five percent of the Bank’s total liabilities:
-
Aggregate, Turkish Lira and foreign currency items are tabulated seperately.
Calculation for currency items that exceed 5 % of the Bank’s total assets (USD,
EUR, etc. items) are done seperately.
Currency items that do not exceed 5 % of the Bank’s total assets are
aggregated with the Eur items.
e) Information on liquidity risk mitigation techniques:
The Bank, while monitoring its liquity position, thoroughly oversees its compliance
with the regulatory liquidity coverage ratios. The Bank’s Board of Directors
approved these regulatory limits as “Risk Limits” to be complied with and
additionally set “Key Risk Indicators”.
Liquidity Coverage Ratio:
Liquidity coverage ratio is calculated by comparing the “high quality liquid assets”
of the Bank to the net cash outflow in the coming one month period, in line with
the “Regulation on the Calculation of Banks’ Liquidity Coverage Ratios” issued by
the Banking Regulation and Supervision Agency of Turkey.
Hence, these ratios are effected by the levels of a bank’s liquid assets which can be
liquidified easily and the cash in-flows as well as the cash out-flows arising from a
bank’s assets, liabilities and also off balance sheet items.
131
ŞEKERBANK T.A.Ş.
The Bank’s “high quality liquid assets” comprise of cash and the balance sheet
items held within the Central Bank as well as securities issued by the Turkish
Treasury, which are not subject to repurchase agreements or not pledged as
collateral.
TRL+FC
Total Unweighted
Value (Average) (*)
TRL+FC
TRL+FC
1
2
FC
HIGH QUALITY LIQUID ASSETS
1
Total high-quality liquid assets (HQLA)
2,829,271
1,748,312
Retail deposits and deposits from small
business customers, of which:
690,102
200,378
68,848
4
Less stable deposits
4,897,240
2,140,050
489,724
214,005
3,875,166
1,722,092
2,555,323
1,185,872
224,116
83,640
56,029
20,910
3,188,130
1,456,734
2,011,050
982,573
462,920
181,718
488,244
182,389
5
Unsecured wholesale funding, of which:
6
Operational deposits
7
Non-operational deposits
10
Other cash outflows of which:
352,701
3
Stable deposits
5,006,980
1,542,480
250,349
77,124
4
5,885,100
2,755,770
588,510
275,577
5
7
8
Unsecured funding
9
Secured wholesale funding
10
11
Outflows related to derivative exposures
and other collateral requirements
12
Outflows related to restructured
financial instruments
13
Payment commitments and other offbalance sheet commitments granted
for debts to financial markets
14
15
16
Other revocable off-balance sheet
commitments and contractual obligations
Other irrevocable or conditionally
revocable off-balance sheet obligations
282,853
3,517,010
1,376,960
6
1,728,025
4,007,560
9
838,859
2,984,770
8,904,800
8
4,298,250
FC
Stable deposits
2
10,892,080
TRL+FC
3
CASH OUTFLOW
Retail deposits and deposits from small
business customers, of which:
FC
CASH OUTFLOW
Total Weighted
Value (Average) (*)
FC
Total Weighted
Value (Average) (*)
The major funding source for the Bank is the deposits. In addition to the deposits,
the other significant sources of funding include funds received through REPO
transactions, issued securities, long-term recources obatined from the financial
institutions (Covered Bonds, syndications, and other).
Current Period
Total Unweighted
Value (Average) (*)
Prior Period
4,520,317
1,758,427
3,039,295
1,329,968
284,808
152,316
71,202
38,079
3,536,444
1,213,645
2,269,028
899,423
699,065
392,466
699,065
392,466
-
-
3,185,536
976,243
3,185,536
976,243
3,134,968
930,232
3,134,968
930,232
4,557
-
4,557
-
Unsecured funding
-
-
3,212,350
1,326,369
3,212,350
1,326,369
11
Outflows related to derivative exposures
and other collateral requirements
3,097,361
1,304,395
3,097,361
1,304,395
12
Outflows related to restructured
financial instruments
93,015
-
93,015
-
13
Payment commitments and other offbalance sheet commitments granted
for debts to financial markets
21,974
21,974
21,974
21,974
98,120
1,450,160
4,906
72,508
3,881,617
1,866,007
14
Other revocable off-balance sheet
commitments and contractual obligations
15
Other irrevocable or conditionally
revocable off-balance sheet obligations
16
TOTAL CASH OUTFLOWS
512,943
79,640
6,975,624
2,947,242
CASH INFLOWS
17
Secured receivables
18
Unsecured receivables
80,420
-
40,210
-
779,082
67,696
529,742
142,505
46,011
46,011
46,011
46,011
19
Other cash inflows
3,072,285
2,718,162
3,072,285
2,718,162
88,560
88,480
4,428
4,424
20
TOTAL CASH INFLOWS
3,931,787
2,785,858
3,642,237
2,860,667
4,120,831
557,288
569,577
91,986
21
TOTAL HQLA
2,984,770
1,728,025
7,637,695
2,755,322
22
TOTAL NET CASH OUTFLOWS
3,333,388
736,810
23
LIQUIDITY COVERAGE RATIO (%)
89.54
234.53
Total Adjusted Value
TOTAL CASH OUTFLOWS
CASH INFLOWS
17
Secured receivables
5,758
-
2,879
-
18
1,183,176
149,321
681,574
111,527
19
Other cash inflows
3,081,877
2,917,289
3,081,877
2,917,289
20
TOTAL CASH INFLOWS
4,270,811
3,066,610
3,766,330
3,028,816
21
TOTAL HQLA
2,829,271
1,748,312
22
3,871,365
688,831
23
73.08
253.81
(*)
The average of last three months’ liquidity coverage ratio calculated by monthly and weekly
simple averages.
simple averages.
(*)
The FC liquidity coverage ratio calculated from the average value for the last
quarter of 2014 is 234.53, TRL + FC liquidity coverage ratio is 89.54 and the same
rates in the last quarter of 2015 are 253.81 and 73.08 respectively.
The lowest and highest Liquidity Coverage Ratios for 2015 is given in the following table.
Date
Maximum
Date
TRL+FC
25.12.2015
89.25
23.10.2015
Minimum
63.42
FC
20.11.2015
283.72
23.10.2015
178.32
132
ŞEKERBANK T.A.Ş.
Presentation of assets and liabilities according to their remaining maturities:
1-3
Months
3-12
Months
Current Period
Assets
809,264
1,971,912
44,088
42,518
79
35,855
14,497
7,236
Loans (**) (***)
71,005
970,927 5,228,548
Other Assets
302,732
249,194
4,399
Total Assets
1,234,404 3,270,406 5,247,444
35,717
6,266
2,290,881
2,332,864
Demand
Liabilities
Bank Deposits
Other Deposits
Securities Issued
Sundry Creditors
Other Liabilities
Total Liabilities
Liquidity Gap
Derivative Financial Assets
Derivative Financial Liabilities
Non-Cash Loans
Prior Period
Total Assets
Total Liabilities
Liquidity Gap
Non-Cash Loans
Up to 1
Month
440,889
950,374
1,683,540 7,570,235
211,754
- 2,006,320
325,729
124,819
255,289
2,574,977 10,993,972
(1,340,573) (7,723,566)
2,003
3,271,164
3,269,161
2,015,024
152,034
680,868 2,916,325
2,327,979 9,701,070
(1,647,111) (6,784,745)
- (175,838)
- 3,327,573
3,503,411
1,977,248
150,306
1-5
Years
56,741
5,345
836,763
873,503
6,391,774
1,318,756
885,059
383,244
2,294
8,172,631 2,580,848
61,992
5,431
2,959,034
1,179,724
16,407
140,711
798,874
808,591
6,379
334,780
170,293
684,733
186,617
52,760
142,340
3,689,513 2,207,082 1,652,071
1,557,931
125,782 6,520,560
(16,665)
13,699
(18,619)
1,981,548
215,555
639,236
1,998,213
201,856
657,855
442,093 2,096,686
975,760
4,609,523
3,533,388
1,076,135
166,788
1,843,996
1,677,208
562,369
2,132,199
1,805,120
327,079
7,024
333,520
326,496
1,994,772
5 Years
and Over Undistributed (*)
7,034,717
858,428
6,176,289
31,919
672,909
640,990
859,330
7
758,655
12,747
771,409
1,809,439
81,184
2,361,081
569,490
1,791,591
47,661
Total
2,781,176
86,606
148,234
1,723,768
- 16,271,891
- 1,268,303
1,577,369 2,135,988
1,577,369 24,415,966
- 1,458,686
- 13,408,947
- 2,718,585
- 2,012,699
- 1,189,806
325,729
2,526,942
3,301,514
2,526,942 24,415,966
(949,573)
(19,582)
- 6,107,503
- 6,127,085
5,762,781
1,452,575
2,391,813
(939,238)
-
21,187,288
21,187,288
29,893
6,177,998
6,148,105
5,591,686
(*)
Those assets such as tangible assets, investments in subsidiaries and associates, office supply inventory, prepaid expenses and non-performing loans, which are necessary for continuation of
banking activities, unavailable for conversion into cash in a short term and other asset qualified accounts and equity accounts are classified under undistributed.
(**)
Overdraft Loans are presented in 1-3 months period.
(***)
The Bank has classified Loans and Receivables amount to TRL 11,657 Thousand, under financial assets at fair value through profit and loss in the current period. Non performing loans classified as
“Financial assets at fair value through profit and loss”amount to TRL 2,209 Thousand (31 December 2014 – TRL 3,931 Thousand) and Specific provision amount to TRL 1,274 Thousand (31 December
2014 – TRL 2,371 Thousand).
133
ŞEKERBANK T.A.Ş.
Analysis of financial liabilities by remaining contractual maturities:
Demand Up to 1 Month
Current Period
Liabilities
Bank deposits
Other deposits
Funds provided from other financial institutions
Money market borrowings
Securities Issued
Total Liabilities
440,889
1,683,540
2,124,429
Prior Period
Liabilities
Bank deposits
Other deposits
Securities Issued
Total Liabilities
278,323
1,555,126
1,833,449
1-3 Months
3-12 Months
1-5 Years
Over 5 Years
Adjustments
Total
952,508
7,593,640
217,145
2,008,287
10,771,580
62,253
2,992,388
141,334
6,446
385,552
3,587,973
5,447
1,207,182
808,234
273,813
2,294,676
17,743
928,818
793,814
1,740,375
27
1,084,127
1,084,154
(2,411)
(85,573)
(461,073)
(2,034)
(263,373)
(814,464)
1,458,686
13,408,947
2,718,585
2,012,699
1,189,806
20,788,723
620,451
7,190,412
29,499
1,441,218
180,935
9,462,515
61,936
2,684,118
128,169
516,704
3,390,927
3,150
1,200,650
608,045
1,811,845
19,626
303,543
461,713
784,882
825,196
825,196
(689)
(74,495)
(301,199)
(636)
(22,315)
(399,334)
963,171
12,575,437
1,593,253
1,440,582
1,137,037
17,709,480
Analysis of contractual maturity of the Bank’s derivative financial instruments:
Current Period
Net Settled
Foreign exchange forward contracts
Currency swaps
Interest rate swaps
Gross settled
Currency swaps
Interest rate swaps
Total
Prior Period
Net Settled
Currency swaps
Interest rate swaps
Gross settled
Currency swaps
Interest rate swaps
Total
Up to 1 Month
1-3 Months
3-12 Months
1-5 Years
Over 5 Years
Total
-
-
-
-
-
-
251,591
2,773,306
3,024,897
42,810
1,815,236
1,858,046
5,892
138,925
144,817
672,146
672,146
-
300,293
5,399,613
5,699,906
-
-
-
-
-
-
395,044
2,826,895
3,221,939
9,522
1,864,321
1,873,843
6,241
327,112
3,517
336,870
656,047
656,047
-
410,807
5,674,375
3,517
6,088,699
IX. Explanations Related to Securitization Position Risk
None.
X. Explanations Related to Credit Risk Mitigation Techniques
The Bank uses financial collaterals (Government securities, cash, deposit, gold, stock pledge), guarantees and credit derivatives as risk mitigators.
134
ŞEKERBANK T.A.Ş.
The financial collaterals are revaluated on a daily basis. The Bank pays attention
to legality of collaterals, monitoring the fair value of collaterals and insurance
agreements related with the collaterals in the name of the Bank.
XI. Explanations Related to Risk Management Objective and Policies
While “simple approach” is taken into account for banking book items, the Bank
uses “comprehensive approach” for trading book items in the credit mitigation
process.
1.
Collaterals which are grouped according to asset types (*):
Risk Types
Other/ Guarantees
Financial
Physical and Credit
Amount (**) Collaterals Collaterals Derivatives
1
Sovereigns
5,592,305
-
-
-
2
Regional Governments and Local Authorities
74,276
-
-
-
3
Administrative Units and Non-Commercial
Enterprises
10,663
939
-
-
4
Multilateral Development Banks
-
-
-
-
5
International Organizations
-
-
-
-
6
Contingent and Non-Contingent Claims on Banks
and Capital Market Intermediary
359,969
-
-
-
7
Corporate Receivables
10,880,811
123,501
-
-
Contingent and Non-Contingent Claims Included in
the Regulatory Retail Portfolios
6,888,217
77,141
-
-
Contingent and Non-Contingent Claims Secured
by Mortgage
5,256,569
-
-
-
816,160
-
-
-
8
9
10 Past Due Loans
11
1,081,528
-
-
-
12 Collateralized Mortgage Marketable Securities
-
-
-
-
13 Securitization Exposures
-
-
-
-
14 Short-Term Claims on Banks and Corporate
-
-
-
-
15 Undertakings for Collective Investments in
Transferable Securities
16 Other Claims
Total
-
-
-
-
1,710,532
-
-
-
32,671,030
201,581
-
-
(*)
According to the Communiqué on Measurement and Assessment of Capital Adequacy of
Banks, financial collaterals, guarantees and credit derivatives are taken into account in capital
adequacy ratio calculation, while the other/physical collaterals (sureties, allowance alienation,
vehicle and other pledges) are not considered. Mortgage loans are shown in the 9th line of
table.
(**)
Amount consists of “total credit risk amount before credit conversion rates”.
Risk Management System in the Bank is considered as a whole and is
structured in all organisational and management processes as well as
Information Systems and risk awareness is enhanced.
2. Risk Management System is built-in into all activities of the Bank and it is the
responsibility of all the Bank’s personnel to enhance Risk Management System.
3. Risk Management System also covers the Bank’s investments and associates,
as well as its subsidiaries, on a consolidated basis.
4. The objectives to be achieved through the Risk Management System and
internal capital adequacy assessment process are as stated:
• Protection of the Bank’s solid financial condition,
• Determination of the Bank’s risk appetite in line with its strategies and
activities,
• Determination of the Bank’s capital level in line with its risk appetite,
• Adoption of risk-based approaches:
- Across business units,
- In structuring of portfolios,
- In setting of authorisations,
- In pricing.
• Enhancement of Performance Management System,
• Enhancement of the principles of corporate governance and transparency.
The Structure and Scope of Risk Management System
The Risk Management System covers of all the decision-making, executing and
monitoring, controlling and auditing bodies of the Bank and includes the following:
•
•
•
•
•
The Board of Directors
Senior Management
Internal Systems Units
Committees established by the Board of Directors within Risk Management
System
Committees established by Senior Management within Risk Management
System
The Goals of Risk Management System
1.
2.
3.
4.
5.
6.
Enhancement of enterprise risk management culture, by means of
establishment of sound strategies and policies,
Establishment and sound management of risk limits and applications,
Enhancement of asset structure,
Accurate fulfillment of obligations,
Determination of the Bank’s risk appetite in line with the Bank’s business
strategies and activities,
Determination of the Bank’s capital level in line with its risk appetite.
135
ŞEKERBANK T.A.Ş.
The Basic Principles of Risk Management System
1.
2.
3.
4.
5.
6.
7.
8.
The activities within the Bank’s Risk Management System are regulated and
supervised in a sound manner.
Risk Management strategies, policies, risk limits and applications are
established in line with the Bank’s business strategies and activities as well as
the requirements within a changing environment.
In order to prevent errors and irregularities, fraud, conflicts of interest,
manipulation of information and abuse of resources, segregation of
authourities is formulated for these.
Authorities and responsibilities of all the units, committees and personnel are
defined precisely and in written form.
Information Systems of the Bank are structured in line with the Bank’s
business strategies and activities as well as the qualifications and the
complexity of products to be newly introduced.
Information Systems of the Bank are structured so that identifying, measuring,
monitoring, controlling and reporting of risks to which the Bank may be
exposed, due to its strategies and activities are executed in an effective and
timely manner.
Within the scope of the organisational structure of the Bank and in accordance
with principles related to security of information, vertical and horizontal flows
of information are established.
All the managers and related personnel are informed precisely, concerning the
Bank’s strategies and objectives, policies, risk limits and applications.
The Tools of Risk Management System
2. Establishment of Segregation of duties and decision-making system,
3. Establishment of sound communication channels (financial / managerial
reporting lines),
4. Establishment of sound process management,
5. Establishment of sound internal controls,
6. Structuring of Emergency and Business Continuity Planning.
XII. Explanations Related to Leverage Ratio
The Bank’s unconsolidated leverage ratio calculated according to “Regulation
on Measurement and Assessment of Leverage Ratios of Banks” is 7.37 % (31
December 2014 – 7.84 %). Change in the leverage ratio is mainly due to the
increase in the amount of on balance sheet items. Regulation has set the minimum
leverage ratio as 3 %.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
(*)
Current
Prior
On-balance sheet assets
Period (*)
Period (*)
On-balance sheet items (excluding derivative financial
instruments and credit derivatives but including
collateral)
23,748,170 20,419,917
(Assets deducted in determining Tier 1 capital)
(182,907)
(104,822)
Total on-balance sheet risks (sum of lines 1 and 2)
23,565,263 20,315,095
Derivative financial instruments and credit derivatives
Replacement cost associated with all derivative
instruments and credit derivatives
127,637
141,406
Add-on amounts for PFE associated with all derivative
99,474
102,241
Total risks of derivative financial instruments and
credit derivatives (sum of lines 4 to 5)
227,111
243,647
Securities or commodity financing transactions (SCFT)
Risks from SCFT assets
Risks from brokerage activities related exposures
51,466
40,015
Total risks related with securities or commodity
financing transactions (sum of lines 7 to 8)
51,466
40,015
Other off-balance sheet transactions
Gross notional amounts of off-balance sheet
transactions
7,992,341 7,807,294
(Adjustments for conversion to credit equivalent
amounts)
(164,668)
(262,591)
Total risks of off-balance sheet items (sum of lines 10
and 11)
7,750,723 7,544,704
Capital and total risks
Tier 1 capital
2,329,783 2,207,087
Total risks (sum of lines 3, 6, 9 and 12)
31,594,563 28,143,461
Leverage ratio
Leverage ratio
7.37
7.84
Amounts in the table are three-month average amounts.
XIII. Explanations Related to Presentation of Financial Assets and Liabilities at Fair
Value
Current period marketable securities are comprised of interest-bearing assets
held-to-maturity and interest-bearing assets available-for-sale. The fair value
of the held to maturity assets is determined by market prices or quoted market
prices of other marketable securities which are subject to redemption with same
characteristics in terms of interest, maturity and other similar conditions when
market prices cannot be determined.
136
ŞEKERBANK T.A.Ş.
The book value of demand deposits, money market placements with floating
interest rate and overnight deposits represents their fair values due to their
short-term nature. The estimated fair value of deposits, funds provided from other
financial institutions with fixed interest rate and securities issued is calculated by
determining their cash flows discounted by the current interest rates used for
other liabilities with similar characteristics and maturity structure. The fair value
of loans is calculated by determining the cash flows discounted by the current
interest rates used for receivables with similar characteristics and maturity
structure. The book value of the sundry creditors reflects their fair values since
they are short-term
The market values of the items shown in the table are calculated by combining
the accrued interest and the market value of principal amounts, based on time to
maturity for fixed rate items and time to repricing day for floating rate items. The
market values of interest rate insensitive items are calculated with respect to their
book values.
The table below shows the book value and the fair value of the financial assets and
liabilities which cannot be shown with their fair value in the financial statements of
the Bank.
Current Period
Financial Assets
Banks
Available-For-Sale Financial Assets
Loans (*)
Financial Liabilities
Bank Deposits
Other Deposits
Funds Borrowed From Other Financial Institutions
Interbank Borrowings
Securities Issued
Sundry Creditors
Book Value
Fair Value
86,606
1,723,768
1,268,303
16,271,891
78,558
1,723,768
1,264,025
16,298,517
1,458,686
13,408,947
2,718,585
1,189,806
325,729
1,457,517
13,396,193
3,001,435
1,208,700
325,729
Prior Period
Financial Assets
Banks
Loans (*)
Bank Deposits
Other Deposits
Securities Issued
Sundry Creditors
Book Value
Fair Value
73,205
124,629
1,055,934
1,364,849
14,333,129
73,205
124,624
1,055,934
1,409,767
14,578,956
963,171
12,575,437
1,593,253
1,137,037
365,801
963,220
12,556,367
1,755,129
1,168,827
365,801
TFRS 7 “Financial Instruments: Disclosures” standard require those items which
are recorded in the balance sheet with their fair values to be expressed in
footnotes in a sequenced classification. Accordingly, such financial instruments
are classified in three gradual groups as reflecting importance of the data used
for fair value measurement. In the first group, there are financial instruments
whose fair values were determined according to prices of identical assets or
liabilities recorded in active markets; in the second group, there are financial
instruments whose fair values were determined according to data of directly or
indirectly observable markets; in the third group there are financial instruments
whose fair values are not determined as based on observable market data. These
financial instruments which are recorded in the balance sheet of the Bank with
their fair values are expressed below in graduation according to afore mentioned
classification principles.
Current Period
Financial Assets
Financial Assets at fair value through profit and loss
Trading Financial Assets
Derivative Financial Assets Held for Trading
Loans
Financial Assets Available for Sale
Derivative Financial Liabilities Held for Trading
Prior Period
Financial Assets
Loans
Level 1
Level 2
Level 3
9,970
- 138,264
11,657
1,716,532
7,236
-
- 139,600
-
6,752
1,049,210
150,161
6,724
22,229
-
-
97,241
-
XIV. Explanations Related to Transactions Made on Behalf of Others and
Transactions Based On Trust
The Bank performs buying and selling transactions on behalf of customers, but
does not provide custody, administration and consultancy services.
There are no transactions made with other financial institutions within trust
transaction contract and direct financial services provided within this scope.
137
ŞEKERBANK T.A.Ş.
SECTION FIVE
EXPLANATIONS AND DISCLOSURES ON
Starting from 09.10.2015, reserve deposit ratios for FC other liabilities that will occur after
28.08.2015 are regulated as follows:
- Other liabilities up to one year (including one year) are 25 %,
- Other liabilities up to two year (including two year) are 20 %,
- Other liabilities up to three year (including three year) are 15%,
- Other liabilities up to five year (including five year) are 7 %,
- Other liabilities longer than five year are 5 %.
I. Explanations Related to the Assets
1.a) Information on Cash and Balances with the Central Bank of Turkey:
2. Information on financial assets at fair value through profit and loss (net):
Cash in TRL/Foreign Currency
Balances with the Central Bank
of Turkey
Other
Total
Current Period
TRL
FC
117,429
56,272
430,210
547,639
2,177,261
4
2,233,537
Prior Period
TRL
FC
125,673
68,867
116,450
242,123
1,991,116
4
2,059,987
b) Information related to the account of the Central Bank of Turkey:
Unrestricted demand deposit
Unrestricted time deposit
Restricted time deposit
Total
Current Period
TRL
FC
430,210 2,022,307
29,181
125,773
430,210
2,177,261
Prior Period
TRL
FC
116,450
1,991,116
116,450
1,991,116
• The reserve deposits include TRL 1,814,028 Thousand of FC unrestricted demand deposit (31
December 2014 – TRL 1,802,350 Thousand) and TRL 430,149 Thousand of the TRL unrestricted
demand deposit (31 December 2014 – TRL 115,998 Thousand). TRL unrestricted demand deposit
includes the reserve deposit amount that is held in the Central Bank of the Turkish Republic
on average. The Central Bank of Turkish Republic has begun to apply interest on TRL and USD
reserve deposits as of November 2014 and May 2015, respectivly.
• Starting from 01.03.2015, reserve deposit ratios for TRL deposits are regulated as follows:
- Unrestricted, TRL deposit call accounts and special current accounts are 11.5%,
- Deposits up to one month (including one month) are 11.5%,
- Deposits up to three month (including three month) are 11.5%,
- Deposits up to six month (including six month) are 8.5%
- Deposits up to one year are 6.5%,
- Deposits/participation accounts with 1-year and longer maturity and cumulative deposits/
participation accounts are 5%,
- Other TRL liabilities up to one year (including one year) are 11.5%,
- Other liabilities up to 3-year maturity (including 3-year) are 8%
- Other liabilities longer than 3-year maturity are 5%.
• Starting from 24.05.2013, reserve deposit ratios for the FC deposits and precious metal
deposits are regulated as follows:
- Unrestricted FC deposit call accounts, special current accounts and precious metal deposit
accounts and deposits up to one month, up to three month, up to six month, up to one year FC
deposits, FC participate accounts and precious metal deposits are 13%,
- FC Deposits, precious metal deposit and FC participate accounts and FC accumulated
accounts and FC participate accounts longer than one year (including one year) are 9%.
Starting from 13.03.2015, reserve deposit ratios for FC other liabilities are regulated as follows:
i. Information on financial assets at fair value through profit and loss given as
collateral or blocked:
None (31 December 2014 - None).
ii. Financial assets at fair value through profit and loss subject to repurchase
agreements:
None (31 December 2014 - None).
Net book value of unrestricted financial assets at fair value through profit and loss
is TRL 9,970 Thousand (31 December 2014 – TRL 6,752 Thousand).
iii. Positive differences related to derivative financial assets held-for-trading:
Derivatives Held for Trading
Forward Transactions
Swap Transactions
Futures Transactions
Options
Other
Total
Current Period
TRL
FC
1,119
92,910
43,847
69
319
92,979
45,285
Prior Period
TRL
FC
5,012
109,049
34,903
49
1,148
109,098
41,063
iv. Loans at fair value through profit and loss
Opening Balance
Additions (+)
Change in Interest Rates (*)
Change in Credit Risk (**)
Impairment Provision
Collections (-)
Net Balance
Current Period
22,229
(988)
965
(1,097)
(9,452)
11,657
Prior Period
44,680
(1,045)
1,119
(240)
(22,285)
22,229
(*)
Change in interest rates shows the effect of TRLIBOR (basic interest rate) difference on loans
at fair value through profit and loss between two periods.
(**)
Change in credit risk shows the effect of the difference of basic interest rates and similar
loans interest rates on loans at fair value through profit and loss.
As of 31 December 2015, TRL 11,657 Thousand (31 December 2014 – TRL 22,229
Thousand) of loans which are classified as Financial Assets at Fair Value Through
Profit and Loss using effective interest rate have fair value amount as TRL 11,852
Thousand (31 December 2014 - TRL 22,056 Thousand).
138
ŞEKERBANK T.A.Ş.
3.a) Information on banks:
a.2) Financial assets available-for-sale subject to repurchase agreements:
Current Period
Banks
Domestic
Current Period
FC
TRL
FC
17,243
69,363
20,104
104,525
Government bonds
17,225
25,471
20,081
46,688
18
43,892
23
57,837
-
-
-
-
17,243
69,363
20,104
104,525
Foreign
Branches and head office abroad
Total
Prior Period
TRL
3.b) Information on foreign bank accounts:
Current
Period
Prior
Period
Current
Period
Prior
Period
42,898
-
-
9,921
9,858
-
-
OECD Countries (*)
5,636
4,327
-
-
-
-
-
-
987
777
-
-
43,910
57,860
-
-
Total
(*)
Restricted
Amount
27,366
Other
OECD countries other than European Union countries, USA and Canada.
Total
738,261
-
Treasury bills
-
-
-
-
FC
Other public sector debt securities
-
-
-
-
Bank bonds and bank guaranteed
bonds
-
-
-
-
-
-
-
-
-
-
-
-
1,119,230
-
738,261
-
Net book value of unrestricted financial assets available-for-sale is TRL 536,154
b) Information on financial assets available for sale portfolio:
Debt securities
Quoted on a stock exchange
Current Period
Prior Period
1,748,258
1,052,918
1,748,258
1,052,918
Not quoted on a stock exchange
Share certificates
Impairment provision(-)
Current Period
Other
-
a.1) Information on financial assets available-for-sale given as collateral or blocked:
Bonds, Treasury bills and similar
investment securities
1,119,230
-
-
9,218
8,706
4. Information on financial assets available-for-sale:
Share certificates
TRL
Total
USA and Canada
Off-shore banking regions
FC
Other
Unrestricted
Amount
Prior Period
TRL
Total
-
-
9,218
8,706
(33,708)
(5,690)
1,723,768
1,055,934
5. Information on loans:
Prior Period
TRL
FC
TRL
FC
-
-
-
-
68,384
-
-
-
-
-
-
-
68,384
-
-
-
a) Information on all types of loans and advances given to shareholders and
employees of the Bank:
Current Period
Cash
Loans
Direct loans granted to shareholders
Corporate shareholders
Real person shareholders
Indirect loans granted to shareholders
Loans granted to employees
Total
Prior Period
Non-Cash
Loans
Cash
Loans
Non-Cash
Loans
-
-
-
-
-
-
-
-
-
-
-
47,233 355,511
42,241
398,308
23,028
421,336
23,704
-
47,233 379,215
-
42,241
139
ŞEKERBANK T.A.Ş.
b) Information on the first and second group loans and other receivables including
restructured or rescheduled loans:
Standard loans and
other receivables
Cash loans (*)
Loans
and other
receivables
(Total)
Loans and other receivable
under close monitoring
Loans
and other
receivables
(Total)
Amendments
on Conditions
of Contract
Amendments
related to the
extension of
the payment
plan Other
Non-specialized loans
Current Period
The Time extended via
the Amendment on Payment Plan
Prior Period
Standard
loans and
other
receivables
Loans
and other
receivable
under close
monitoring
Standard
loans and
other
receivables
Loans
and other
receivable
40,640
Amendments
on Conditions
of Contract
Amendments
related to the
Extension of
the payment
plan Other
0-6 Months
30,636
38,242
441,020
6 Months- 12 Months
67,408
18,244
58,818
32,374
1-2 Years
15,978
113,240
9,392
52,093
2-5 Years
276,147
479,482
15,308
452,879
-
9,433
147
15,749
5 Years and More
c) Loans and other receivables according to their maturity structure:
12,718,841
335,122
-
1,283,369
639,732
-
-
-
-
-
-
-
Export loans
1,847,037
15,438
-
4,182
-
-
Import loans
-
-
-
-
-
-
12,476
-
-
797
387
-
1,364,118
687
-
95,672
2,798
-
274,556
-
-
12,884
-
-
Short-term loans and other
receivables
7,090,518
15,815
245,330
14,807
9,220,654
318,997
-
1,169,834
636,547
-
6,259,977
15,403
214,820
7,270
Specialized loans
2,151,821
55,047
-
117,860
18,909
-
Specialized loans
830,541
412
30,510
7,537
Other receivables
-
-
-
-
-
-
Other receivables
-
-
-
-
14,870,662
390,169
-
1,401,229
658,641
-
7,389,975
374,354
497,258
643,834
6,123,742
319,719
428,817
632,462
Specialized loans
1,266,233
54,635
68,441
11,372
Other receivables
-
-
-
-
14,480,493
390,169
742,588
658,641
Corporation loans
Loans given to
financial sector
Consumer loans
Credit cards
Other
Total
(*)
The Bank has classified Loans and Receivables amount to TRL 11,657 Thousand, under financial
assets at fair value through profit and loss in the current period.
Current Period
Number of Amendments Related
to the Extension of the Payment Plan
Extended for 1 or 2 times
Extended for 3,4 or 5 times
Extended for more than 5 times
Prior Period
Standard Loans and
Other Receivables
Loans
and Other
Receivables (*)
Medium and Long-term loans
Total
Standard
loans and
other
receivables
Loans
and other
receivable
under close
monitoring
Standard
loans and
other
receivables
Loans
and other
receivable
under close
monitoring
384,449
658,641
520,135
593,733
683
-
1,011
2
5,037
-
3,539
-
Loans and Other Receivables
Under Follow-Up
Amendments
Loans
on Conditions
and Other
of Contract Receivables (*)
Amendments
on Conditions
of Contract
(*)
The Bank has classified Loans and Receivables amount to TRL 11,657 Thousand, under financial
assets at fair value through profit and loss in the current period.
140
ŞEKERBANK T.A.Ş.
d) Information on consumer loans, individual credit cards, personnel loans and
credit cards given to personnel:
Consumer Loans-TRL
Housing Loans
Car Loans
General Purpose Loans
Other
Consumer Loans –Indexed to FC
Housing Loans
Car Loans
Other
Consumer Loans-FC
Housing Loans
Car Loans
Other
Individual Credit Cards-TRL
With Instalments
Without Instalments
Individual Credit Cards-FC
With Instalments
Without Instalments
Personnel Loans-TRL
Housing Loans
Car Loans
Other
Personnel Loans- Indexed to FC
Housing Loans
Car Loans
Other
Personnel Loans-FC
Housing Loans
Car Loans
Other
Personnel Credit Cards-TRL
With Instalments
Without Instalments
Personnel Credit Cards-FC
With Instalments
Without Instalments
Overdraft Accounts-TRL(Real Person) (*)
Overdraft Accounts-FC (Real Person)
Short
Term
20,385
1,279
35
19,071
183,042
54,892
128,150
191
2
189
690
690
7,891
2,399
5,492
23
23
44,693
-
Medium and
Long Term
1,366,505
264,361
26,840
1,075,304
1,782
1,782
14
14
11,349
89
67
11,193
-
Total
1,386,890
265,640
26,875
1,094,375
1,782
1,782
183,056
54,906
128,150
191
2
189
12,039
89
67
11,883
7,891
2,399
5,492
23
23
44,693
-
Total
256,915
1,379,650
1,636,565
As of 31 December 2015 , overdraft accounts for real persons include TRL 3,075 Thousand
personnel overdraft account.
(*)
e) Information on commercial loans with instalments and corporate credit cards:
Commercial loans with instalment facility-TRL
Business Loans
Car Loans
Other
Commercial loans with instalment facility - Indexed
to FC
Business Loans
Car Loans
Other
Commercial loans with instalment facility –FC
Business Loans
Car Loans
Other
Corporate Credit Cards-TRL
With Instalments
Without Instalments
Corporate Credit Cards-FC
With Instalments
Without Instalments
Overdraft Accounts-TRL (Legal Entity)
Overdraft Accounts-FC (Legal Entity)
Total
Short
Term
223,980
138
2,779
221,063
-
Medium and
Long Term
3,318,625
24,878
125,302
3,140,288
28,157
Total
3,542,605
25,016
128,081
3,361,351
28,157
29,938
834
29,104
5,253
5,253
91,031
24,850
66,181
13
13
169,113
519,328
618,532
4,269
21,986
592,277
361,770
361,770
4,298,927
648,470
4,269
22,820
621,381
367,023
367,023
91,031
24,850
66,181
13
13
169,113
4,818,255
f) Loans according to borrowers:
Public
Private
Total
Current Period
71,520
16,200,371
16,271,891
Prior Period
60,469
14,272,660
14,333,129
Current Period
16,261,185
10,706
16,271,891
Prior Period
14,325,662
7,467
14,333,129
Current Period
26,266
26,266
Prior Period
46,270
46,270
Current Period
21,865
99,784
424,311
545,960
Prior Period
19,490
62,807
437,814
520,111
g) Domestic and foreign loans:
Domestic loans
Foreign loans
Total
h) Loans granted to subsidiaries and associates:
Direct loans granted to subsidiaries and associates
Indirect loans granted to subsidiaries and associates
Total
i) Specific provisions provided against loans:
Specific Provisions (*)
Loans and receivables with limited collectability
Loans and receivables with doubtful collectability
Uncollectible loans and receivables
Total
(*)
Thousand).
141
ŞEKERBANK T.A.Ş.
j.4) Information regarding gross and net amounts of non-performing loans with
respect to user groups:
j) Information on non-performing loans (Net):
j.1) Information on loans and other receivables included in non-performing loans
which are restructured or rescheduled:
Current period
(Gross amounts before the
specific reserves)
Loans and other receivables which
are restructured
Rescheduled loans and other
receivables
Prior period
(Gross amounts before the
specific reserves)
are restructured
receivables
III. Group:
IV. Group:
V. Group
Loans and
Loans and
receivables
receivables Uncollectable
with limited with doubtful
loans and
collectability collectability receivables
-
4,218
60,320
-
-
-
-
4,218
60,320
-
5,070
39,839
-
-
-
-
5,070
39,839
j.2) The movement of non-performing loans:
Prior period end balance
Additions (+)
Transfers from other categories of
non-performing loans (+)
Transfers to other categories of
non-performing loans (-)
Collections (-)
Write-offs (-)
Corporate and commercial loans
Retail loans
Credit cards
Current period end balance (*)
Specific provision (-) (*)
Net Balances on Balance Sheet
III. Group
IV. Group
V. Group
Loans and
Loans and
receivables
loans and
collectability collectability
receivables
119,886
146,003
576,172
610,807
24,803
22,516
-
521,973
335,721
(521,973)
(43,128)
11
11
165,581
21,865
143,716
(335,721)
(82,094)
897
897
274,067
99,784
174,283
(121,729)
240,694
182,606
41,887
16,201
571,986
424,311
147,675
(*)
loss”amounting to TRL 2,209 Thousand (31 December 2014 – TRL 3,931 Thousand) and Specific
provision amounting to TRL 1,274 Thousand (31 December 2014 – TRL 2,371 Thousand) in the
current period.
j.3) Informations on non-performing loans and other receivables in foreign
currency: None (31 December 2014 – None).
Current Period (Net) (*)
Loans to Real Persons and Legal
Entities (Gross)
Specific provision (-)
Entities (Net)
Banks (Gross)
Banks (Net)
Other Loans and Receivables (Gross)
Other Loans and Receivables (Net)
Prior Period (Net) (*)
Entities (Gross)
Entities (Net)
Banks (Gross)
Banks (Net)
III. Group
IV. Group
V. Group
Loans and
Loans and
receivables
loans and
receivables
165,581
( 21,865)
274,067
( 99,784)
571,986
( 424,311)
143,716
-
174,283
-
147,675
-
119,886
(19,490)
146,003
(62,807)
576,172
(437,814)
100,396
-
83,196
-
138,358
-
(*)
Non-performing loans classified as “Financial assets at fair value through profit and loss”
amounting to TRL 2,209 Thousand (31 December2014 – TRL 3,931 Thousand) and Specific
provision amounting to TRL 1,274 Thousand (31 December2014 – TRL TRL 2,371 Thousand).
k) Main principles of uncollectable loans and receivables:
the BRSA.
l) Explanations on write-off policy:
The Bank sold uncollectable non-performing commercial and consumer loans
including credit cards amounting to TRL 209,057 Thousand for total cash amount
of TRL 15,100 Thousand on 30 March 2015, for TRL 2,200 Thousand to Güven Varlık
Yönetim A.Ş., for TRL 7,200 Thousand to Destek Varlık Yönetim A.Ş. and for TRL
5,700 Thousand to Final Varlık Yönetim A.Ş., respectively. On 20 May 2015, the Bank
sold TRL 2,814 Thousand non-performing loans to RCT Varlık Yönetim A.Ş. for TRL
675 Thousand. On 16 December 2015 the Bank sold uncollectable non-performing
consumer loans including credit cards amounting to TRL 29,944 Thousand for
3,600 Thousand in cash to Destek Varlık Yönetim A.Ş. (31 December 2014 - The
Bank sold non-performing loans amounting to TRL 22,255 Thousand on 4 June
2014 to Vera Varlık Yönetim A.Ş. for TRL 22,300 Thousand and TRL 4,709 Thousand
on 16 December 2014 to RCT Varlık Yönetim A Ş. for TRL 1,100 Thousand).
142
ŞEKERBANK T.A.Ş.
m) Other explanations and disclosures
Aging analysis of past due but not impaired loans per classes of financial
statements:
A reconciliation of the allowance for impairment losses and advances by classes is
as follows;
Corporate
Small
Business Consumer
Less than
30 days
Total
Current Period (*)
At 1 January 2015
185,537
254,802
79,772
520,111
Charge for the year
134,004
165,094
61,876
360,974
Recoveries(**)
(38,887)
(44,944)
(9,692)
(93,523)
Amounts written off
(91,794)
(90,812)
(58,996)
(241,602)
At 31 December 2015
188,860
284,140
72,960
545,960
210,545
117,537
41,974
370,056
89,354
157,969
48,991
296,314
Prior Period
At 1 January 2014
Charge for the year
(107,756)
(20,704)
(11,193)
(139,653)
Amounts written off
(6,606)
-
-
(6,606)
At 31 December 2014
185,537
254,802
79,772
520,111
Recoveries
(**)
Asset Pledges
III. Group
IV. Group
V. Group
90,041
117,733
268,191
-
1,334
2,410
2,334
3,847
34,817
Pledged Vehicles
7,024
13,228
35,450
173
5,270
139
72
375
1,044
79,323
59,650
248,595
Deposit Pledge
Prior Period
Mortgages
Asset Pledges
330
-
-
Cheques and Notes of Consumers
2,382
3,216
27,952
Pledged Vehicles
2,129
2,274
23,247
4,000
125
2,917
804
678
16
Allowance Alienation
Deposit Pledge
Loans and advances to customers (*)
Corporate loans
248,292
36,570
74,503
359,365
Small business loans
288,135
162,403
94,976
545,514
Consumer loans
120,602
48,491
20,422
189,515
657,029
247,464
Total
189,901 1,094,394
Prior Period
Corporate loans
204,651
30,723
29,180
264,554
403,518
83,094
68,854
555,466
18,952
194,801
Consumer loans
Total
132,299
43,550
740,468
157,367
116,986 1,014,821
a.1) Information on held-to-maturity investments given as collateral or blocked:
Total
Current Period
6. Information on held-to-maturity investments:
Collaterals of nonperforming loans:
Mortgages
61-90
days
(*)
The table shows only past due loans of customers,non past due loans of related customers
are not included.
Thousand).
(**)
(*)
Current Period
31-60
days
Current Period
Treasury Bill
Bond and Similar Securities
Other
Prior Period
-
-
236,337
380,819
-
-
Total
236,337
380,819
a.2) Held-to-maturity investments subject to repurchase agreements are TRL
802,357 Thousand (31 December 2014 – 712,613 Thousand).
b) Information on public sector debt investments held-to-maturity:
Current Period
Prior Period
1,268,303
1,364,849
Treasury Bills
-
-
Other Public Sector Debt Securities
-
-
1,268,303
1,364,849
Government Bonds
Total
Net book value of unrestricted held-to-maturity investments is TRL 229,609
Thousand (31 December 2014 – TRL 271,417 Thousand).
143
ŞEKERBANK T.A.Ş.
c) Information on held-to-maturity investments:
c) Movement of associates:
Current Period
Prior Period
1,119,996
1,224,438
Balance at the beginning of the period
1,119,996
1,224,438
Movement during the period
-
-
(1,191)
(1,646)
149,498
142,057
1,268,303
1,364,849
Debt Securities
Impairment Provision (-)
Accruals
Total
d) Movement of held-to-maturity investments:
Current Period
Prior Period
1,222,792
1,107,696
Beginning Balance
Foreign currency differences on monetary
assets
Purchases during year
Disposals through sales and redemptions
Provision reversal / Impairment provision (-)
Closing Balance
Accruals
Total
81
27
-
216,928
(104,523)
(101,235)
455
(624)
1,118,805
1,222,792
149,498
142,057
1,268,303
1,364,849
7. Information on associates (Net):
Current Period
Prior Period
4,140
4,140
-
-
Purchases
-
-
Bonus shares obtained
-
-
Share in the current year income
-
-
Sales
-
-
Revaluation increase
-
-
Provision of Impairment (-)
-
-
4,140
4,140
Balance at the end of the period
Capital Commitment
-
-
100
100
Current Period
Prior Period
4,140
4,140
Share percentage at the end of the period (%)
d) Valuation of associates
Valuation with cost
Valuation with fair value
-
-
Valuation with equity method
-
-
e) Sectoral information and the related carrying amounts on Associates:
Seltur Turistik İşletmeler A.Ş. is operating in tourism sector.
a) Information on associates:
f) Associates quoted to stock exchange:
Bank’s Share Bank’s Risk
Address
Percentage-If Group Share
(City/ Different Voting Percentage
Country) Percentage (%)
(%)
Description
Seltur Turistik İşletmeler Yatırım A.Ş.
(*)
(*)
Muğla/Turkey
11.32
11.43
Unaudited financial information of the associate as of 31 December 2015 is stated below.
b) Information on associates with the order as presented in the table above:
Income from Current Prior
Marketable Period Period
Total Shareholders’ Tangible Interest Securities Profit/ Profit/
Asset
Equity
Assets Income
Portfolio
Loss
Loss
50,898
28,910
39,844
100
-
None.
g) Information on associates which are sold in the current period:
None.
h) Information on associates purchased in the current period:
None.
Fair
Value
(1,466) (54,240) 123,544
144
ŞEKERBANK T.A.Ş.
8. Information on subsidiaries (Net):
a) Informations related equity components of subsidiaries (*):
Core Capital
Paid in Capital
Share Premiums
Marketable Securities Value Increase Fund
Legal Reserves
Extraordinary Reserves
Other Income Reserves
Profit/Loss
Prior Years’ Profits and Losses
Total Core Capital
Supplementary Capital
CAPITAL
NET AVAILABLE EQUITY
(*)
Şekerbank
Kıbrıs Ltd.
Şeker Finansal
Kiralama A.Ş.
Şekerbank
International
Banking Unit Ltd.
Şeker Yatırım
Menkul
Değerler A.Ş.
Şeker
Faktoring A.Ş.
24,104
1,095
1
(3,781)
(5,889)
2,108
21,419
21,419
21,419
61,808
1,207
1,919
(19)
(9,521)
(13,650)
4,129
55,394
55,394
55,394
15,126
2,956
1,124
(528)
(884)
356
18,678
18,678
18,678
31,195
(150)
1,547
8,217
(37)
(260)
(260)
40,512
40,512
40,512
21,041
1,881
6,434
3,398
(23)
3,728
(1,041)
4,769
36,459
36,459
36,459
Zahlungsdienste
Şeker Mortgage
GmbH Der
Finansman A.Ş. Şekerbank T.A.Ş.
26,000
614
6,096
24
(8,621)
(8,621)
24,113
24,113
24,113
849
(102)
(212)
(204)
(8)
535
535
535
Used financial information is as of 30 September 2015 .
The objectives to be achieved through the internal capital adequacy assessment process are as follows:
•
•
•
•
•
•
Protection of the solid financial condition,
Determination of the risk appetite in line with the strategies and activities,
Determination of the capital level in line with the risk appetite,
Adoption of risk-based approaches rather than traditional ones,
Enhancement of the Performance Management System,
Enhancement of the principles of corporate governance and transparency.
c) Information on the subsidiaries with the order as presented in the table above:
b) Information on the subsidiaries:
Description (*)
Şekerbank Kıbrıs Ltd.
Şeker Finansal Kiralama A.Ş.
Şekerbank International Banking Unit Ltd.
Şeker Yatırım Menkul Değerler A.Ş.
Şeker Faktoring A.Ş.
Şeker Mortgage Finansman A.Ş.
Zahlungsdienste GmbH
Der Şekerbank T.A.Ş.
Bank’s Risk
Address
Bank’s Share Group Share
(City/ Percentage-If Different Percentage
Country) Voting Percentage (%)
(%)
Nicosia/TRNC
96.11
96.11
Istanbul/
Turkey
54.13
60.20
Nicosia/TRNC
95.80
95.80
Istanbul/
Turkey
99.04
100.00
Istanbul/
Turkey
99.99
99.99
Istanbul/
Turkey
62.31
62.31
Cologne/
Germany
100.00
100.00
Latest financial information of the related subsidiaries as of 30 September 2015 is stated
below.
(*)
Income
from
Current
Marketable Period
Total Shareholders’ Tangible Interest Securities Profit/
Assets
Equity
Assets Income Portfolio
Loss
Prior
Period
Profit/
Loss
Fair
Value (*)
218,150
21,419
5,496
15,363
202
2,108
(5,889)
15,219
420,481
55,394
6,613
24,358
66
4,129
(13,650)
48,538
19,413
18,678
2,083
767
-
356
(884)
11,953
117,369
40,512
22,870
5,420
18
(260)
-
34,162
373,687
36,459
15,425
42,338
160
4,769
(1,041)
42,664
699,248
24,113
532
20,448
-
(8,621)
-
32,406
1,704
535
-
34
-
(8)
(204)
907
(*)
As of 31 December 2015 fair value of the related subsidiaries is stated.
145
ŞEKERBANK T.A.Ş.
12. Information on tangible assets:
d) Movement of subsidiaries:
Purchases
Sales
Provision reversal / Provision of Impairment (-)
Capital Commitment
Current Period
111,052
4,000
4,000
115,052
100
Prior Period
107,719
3,333
3,333
111,052
100
Buildings (*)
530,419
531,370
127,844
Additions
Opening Balance, 1 January 2015
1,512
125,445
35,947
3,236
166,140
Write off
-
-
(3,424)
-
(3,424)
Transfer
-
-
30,753 (30,753)
-
Disposals (-)
(164,340)
(117,675)
Revaluation
102,720
(2,050)
-
-
100,670
543
(146)
-
-
397
470,854
536,944
187,996
Impairment Provision/Reversal
Current Period
115,052
-
Prior Period
111,052
-
Closing Balance,
31 December 2015
Prior Period
15,283
17,908
25,888
18,963
33,010
Current Period
25,888
-
Prior Period
25,888
-
(3,124)
- (285,139)
22,039 1,217,833
223,221
7,076
70,889
21,551
322,737
Write off
-
-
(1,673)
-
(1,673)
Transfer
-
-
12,873
(12,873)
-
1,155
12,282
18,299
4,571
36,307
50,945
Charge for the year
Current Period
15,283
21,908
25,888
18,963
33,010
49,556 1,239,189
Accumulated Amortization
f) Sectoral information and the related carrying amounts on Subsidiaries
Subsidiaries
Banks
Insurance Companies
Factoring Companies
Leasing Companies
Finance Companies
Other Financial Subsidiaries
Total
Cost
e) Valuation of Subsidiaries
Valuation with cost
Assets
Held
Other
Under
Fixed Finance
Foreclosed
Assets (*) (***) Assets (**) Leases
Revaluation
50,945
-
-
-
-
-
-
-
-
Disposals (-)
(37,124)
(3,032)
(1,014)
(1,755)
(42,925)
Closing Balance,
31 December 2015
238,197
16,326
99,374
11,494
365,391
232,657
520,618
88,622
10,545
852,442
Impairment Provision/Reversal
Net Book Value,
31 December 2015
g) Subsidiaries Quoted to Stock Exchange
Quoted to Domestic Stock Exchange
Quoted to Foreign Stock Exchange
Net Book Value,
31 December 2014
307,198
524,294
56,955
28,005
916,452
None.
As of 31 December 2015, value increase and impairment of the buildings and impairment of
immovable held for sale are calculated according to the independent appraisal reports dated
December 2015.
(**)
Cost of leasehold improvements are classified among other fixed assets in the current
period.
(***)
Foreclosed assets contain acquired tangible assets through recoveries from non-performing
loans.
(****)
Disposals from “Buildings” amounting to TRL 148,304 Thousand in cost and TRL 25,004
Thousand in accumulated amortization classified as Assets Held ForSale and Discontinued
Operations line as of 31 December 2015.
9. Information on entities under common control: None (31 December 2014 –
None).
a) If impairment amount on individual asset recorded or reversed in the current
period is material for the overall financial statements:
10. Information on finance lease receivables (Net): None (31 December 2014 –
None).
a.1) Events and conditions for recording or reversing impairment: None.
11. Information on derivative financial assets for hedging purposes: None
(31 December 2014 – None).
a.2) Amount of recorded or reversed impairment in the financial statements: Bank
has allocated TRL 2,050 Thousand provision for Foreclosed Assets in the attached
financial statements (31 December 2014 – TRL 2,639 Thousand)
h) Information on Subsidiaries which are Sold in the Current Period:
None.
i) Information on Subsidiaries Purchased in the Current Period:
(*)
146
ŞEKERBANK T.A.Ş.
b) The impairment provision set or cancelled in the current period according to
the asset groups not individually significant but materially effecting the overall
financial statements, and the reason and conditions for this: None.
g) Amount of total research and development expenses recorded in income
statement within the period if any: None.
h) Information on goodwill: None.
c) Pledges, mortgages and other restrictions on the tangible fixed assets, expenses
arising from the construction for tangible fixed assets, commitments given for the
purchases of tangible fixed assets: None.
13. Information on intangible assets:
Total
Opening Balance, January 1, 2015
135,636
135,636
Additions
49,888
49,888
Disposals
(434)
(434)
Cost
Closing Balance, 31 December 2015
-
-
185,090
185,090
63,323
63,323
Charge for the year
22,800
22,800
Disposals
-
-
Write Off
-
-
14. Information on investment property: None (31 December 2014 – None).
15. Explanations on deferred tax asset:
Other
Write Off
i) Movements on goodwill in the current period: None.
a) As of 31 December 2015, deferred tax asset computed on the temporary
differences is reflected in the financial statements by netting off with deferred tax
liability and mentioned in Section V. Note II.10.
b) Temporary differences over which deferred tax asset is not computed and
recorded in the balance sheet in prior periods: None.
c) Allowance for deferred tax and deferred tax assets from reversal of allowance:
None.
d) Movement of deferred tax: mentioned in Section V. Note II.10-b1.
16. Information on assets held for sale and discontinued operations: As of
31 December 2015 the Bank has TRL 123,300 Thousand assets held for sale
(31 December 2014 - None).
86,123
86,123
Net Book Value, 31 December 2015
98,967
98,967
17. Information on other assets:
72,313
72,313
a) Breakdown of other assets:
The useful lives of the intangible fixed assets, which are amortized with straight
line amortization method, are 5 years.
a) Disclosures for book value, description and remaining depreciation time for a
specific intangible fixed asset that is material to the financial statements: None.
b) Disclosure for intangible fixed assets acquired through government grants and
accounted for at fair value at initial recognition: None.
c) The method of subsequent measurement for intangible fixed assets that are
acquired through government incentives and recorded at fair value at the initial
recognition: None.
d) The book value of intangible fixed assets that are pledged or restricted for use:
None.
e) Amount of purchase commitments for intangible fixed assets: None.
f) Information on revalued intangible assets according to their types: None.
Current Period
Receivables from Instalment Sales of Assets
Prior Period
6,693
-
Collaterals Given
245,483
213,289
Advances Given
62,939
12,507
Receivables from Banking Services
3,868
1,393
63,349
60,596
Receivables from Credit Card Payments
29,618
14,950
Prepaid Expenses
47,320
12,481
Other Receivables
17,143
35,396
476,413
350,612
Clearing Account
Total
b) Other assets which exceed 10 % of the balance sheet total (excluding off balance
sheet commitments) and breakdown of these which constitute at least 20 % of
grand total:
None.
147
ŞEKERBANK T.A.Ş.
II. Explanations Related to the Liabilities
1. Information on maturity structure of deposits
a) Maturity structure of deposits
Current Period
Demand
7 Day Call
Accounts
Up to 1
month
1-3
Month
3-6
Month
6 Month1 Year
Saving deposits
352,370
-
196,771
5,032,834
135,896
87,917
180,340
663,206
-
225,725
2,711,190
261,084
202,122
853,907
31
4,917,265
640,302
-
211,820
2,500,179
216,087
118,446
306,071
31
3,992,936
924,329
Foreign currency deposits
Residents in Turkey
1 Year Accumulated
And over
Deposits
879
Total
5,987,007
Residents abroad
22,904
-
13,905
211,011
44,997
83,676
547,836
-
Public sector deposits
63,365
-
1
5,437
231
1,271
512
-
70,817
458,869
-
282,342
970,986
8,943
16,416
15,682
57
1,753,295
547,637
Commercial deposits
Other institutions deposits
32,253
-
7,865
492,306
1,245
13,416
552
-
Precious metals deposits
113,477
-
-
-
13,189
6,260
-
-
132,926
440,889
-
699,074
276,025
37,267
5,431
-
-
1,458,686
-
Interbank deposits
Domestic Banks
Foreign Banks
Special finance houses
Other
Total
Prior Period
Saving deposits
-
-
-
-
-
-
-
1,401
-
698,582
107,571
-
-
-
807,554
1,171
-
492
168,454
37,267
5,431
-
-
212,815
438,317
-
-
-
-
-
-
-
438,317
-
-
-
-
-
-
-
-
-
2,124,429
-
1,411,778
9,488,778
457,855
332,833
1,050,993
967
14,867,633
Demand
7 Day Call
Accounts
Up to 1
month
1-3
Month
3-6
Month
6 Month1 Year
327,812
-
218,689
3,859,064
308,678
188,744
189,391
1 Year Accumulated
And over
Deposits
Total
736
5,093,114
456,151
-
201,855
2,819,017
289,676
269,761
659,341
35
4,695,836
441,820
-
198,440
2,677,814
224,678
178,913
241,443
35
3,963,143
Residents abroad
14,331
-
3,415
141,203
64,998
90,848
417,898
-
732,693
61,063
-
27
3,077
274
658
1,348
-
66,447
464,905
-
220,775
1,130,383
99,434
42,163
32,000
51
1,989,711
Residents in Turkey
Commercial deposits
24,365
-
5,630
404,787
36,474
10,784
352
-
482,392
220,830
-
-
-
20,150
6,957
-
-
247,937
Interbank deposits
278,323
-
391,984
257,994
31,863
3,007
-
-
963,171
-
-
-
-
-
-
-
-
714
-
379,865
165,289
-
3,007
-
Domestic Banks
Foreign Banks
Special finance houses
Other
Total
548,875
1,754
-
12,119
92,705
31,863
-
-
-
138,441
275,855
-
-
-
-
-
-
-
275,855
-
-
-
-
-
-
-
-
-
1,833,449
-
1,038,960
8,474,322
786,549
522,074
882,432
822
13,538,608
148
ŞEKERBANK T.A.Ş.
b) Information on saving deposits under the guarantee of saving deposit insurance
and exceeding the limit of saving deposit insurance:
Saving Deposits
Under the guarantee
of insurance (*)
Current
Period
Exceeding the limit
of insurance
Prior
Period
Current
Period
Prior
Period
Saving deposits
3,500,216
2,915,073
2,487,174
2,178,352
Foreign currency saving deposits
1,544,495
1,385,883
2,643,113
2,387,030
-
-
-
-
-
-
-
-
-
-
-
-
5,044,711 4,300,956
5,130,287
4,565,382
Other deposits in the form of
saving deposits
Branches’ deposits under foreign
authorities' insurance
Off-shore banking regions’
deposits under
foreign authorities' insurance
Total
According to the BRSA’s circular no 1584 dated 23 February 2005, accruals are included in the
saving deposit amounts.
(*)
c) Information on the saving deposits of the bank with head office abroad, if
the saving deposits in the branches of the bank located in Turkey are under the
guarantee of saving deposit insurance in that country abroad:
2. Information on derivative financial liabilities:
a) Negative differences table related to derivative financial liabilities held-fortrading:
Liabilities due to held for
trading derivatives
Swap Transactions
Options
Other
Total
Loans from Central Bank of Turkey
From Domestic Banks and
Institutions
From Foreign Banks, Institutions
and Funds
Total
Current Period
TRL
FC
-
Prior Period
TRL
FC
-
55,138
97,851
69,042
56,122
65,938
121,076
2,001,306
2,099,157
69,042
1,030,664
1,086,786
b) Maturity analysis of borrowings:
Short-term
Medium and long-term
Total
d) Saving deposits not guaranteed by insurance:
Deposit of real persons not under the guarantee of saving deposit insurance:
Current Period
Prior Period
Deposits and other accounts in branches abroad
-
-
Deposits and other accounts of ultimate
shareholders and their Mother, Father, Spouse,
Dependent Children
-
-
12,117
Prior Period
TRL
FC
4,890
40,351
50,762
51
1,187
40,402
56,839
3. a) Information on banks and other financial institutions:
Headquarter of the Bank is in Turkey and the Bank is under the coverage of saving
deposit insurance.
Deposits and other accounts of chairman and
members of the Board of Directors and their
Mother, Father, Spouse, Dependent Children
Current Period
TRL
FC
917
103,856
34,411
82
334
103,938
35,662
9,501
Deposits and other accounts obtained through
illegal acts defined in the 282nd Article of the
5237 numbered Turkish Criminal Code dated 26
September 2004.
-
-
Saving deposits in banks established in Turkey
exclusively for off shore banking activities
-
-
Current Period
TRL
FC
54,014
395,688
67,062 1,703,469
121,076 2,099,157
Prior Period
TRL
FC
65,342
664,208
3,700
422,578
69,042 1,086,786
c) Additional explanation related to the concentrations of the Bank’s major
liabilities:
The Bank’s liabilities do not have any concentration in any sector.
4. Information on funds provided from repurchase agreement transactions:
From domestic transactions
Financial institutions and
organizations
Other institutions and
organizations
Real persons
From foreign transactions
organizations
organizations
Real persons
Total
Current Period
TRL
FC
1,868,656
-
Prior Period
TRL
FC
1,440,582
-
1,805,840
-
1,430,876
-
55,467
7,349
-
-
1,320
8,386
-
-
-
-
-
-
1,868,656
-
1,440,582
-
149
ŞEKERBANK T.A.Ş.
5. Marketable securities issued:
8. Information on derivative financial liabilities for hedging purposes:
The Bank issued Asset Covered Bond amounting to TRL 1,500,000 Thousand
and details are shown the table below. The investors are International
security the Bank’s SME loans were used. Outstanding Asset Covered Bond amount
is TRL 764,218 Thousand as of 31 December 2015 (31 December 2014 – TRL 642,648
Thousand).
The Bank does not hold derivative financial liabilities for hedging purposes.
Issue Group
14 September 2011
14 September 2011
9 December 2011
9 December 2011
28 November 2013
27 February 2014
18 December 2015
(*)
Series
2011-2
2011-3
2011-4
2011-5
2013-1
2014-1
Investors
Amount
FMO
61,250
IFC
44,750
EIB
120,000
EBRD
60,000
KfW/EIF
135,975
Qualified
Institutional
Investors
361,846
2015-1 EIB
319,400
Outstanding
Amount (*) Currency Maturity
61,250
TRL 12.09.2016
17,900
TRL 12.09.2016
TRL 12.01.2015
TRL 12.01.2015
TRL 12.12.2014
361,846
319,400
TRL 13.03.2017
TL 12.03.2019
Bills
Asset Backed Securities
Bonds
Total
Current Period
TRL
FC
425,588
764,218
1,189,806
-
9. Information on provisions:
a) Information on general provisions:
General Provision
Provisions for first group loans and receivables
Additional provisions for the loans with
extended payment plan
Provisions for second group loans and receivables
Provisions for non-cash loans
Other
13,911
47,746
21,085
40,463
32,918
16,651
3,318
29,701
15,476
2,352
b) Foreign exchange losses on the foreign currency indexed loans and finance lease
eceivables: Foreign exchange losses on the foreign currency indexed loans is TRL
1,790 Thousand (31 December 2014 - TRL 1,977 Thousand).
c) The specific provisions provided for unindemnified non-cash loans amount to
TRL 42,109 Thousand (31 December 2014 - TRL 52,382 Thousand).
Prior Period
TRL
FC
494,389
642,648
1,137,037
-
The Bank has calculated reserve for employee termination benefits by using
actuarial valuations as set out in the TAS No: 19 and reflected this in the financial
statements.
Main actuarial assumptions used for calculation of employment termination
benefit are as follows:
-
-
Other liabilities do not exceed 10 % of the balance sheet total.
-
7. Explanations on financial lease obligations (Net):
Lease Payables
Deferred Lease Expenses
Total
Prior Period
163,033
104,742
d) Information on employee termination benefits and unused vacation accrual:
6. Other liabilities which exceed 10 % of the balance sheet total (excluding offbalance sheet commitments) and the breakdown of these which constitute at least
20 % of grand total:
Current Period
TRL
FC
13,563
483
(2,431)
(19)
11,132
464
Current Period
177,980
110,265
Prior Period
TRL
FC
1,920
4,968
(122)
(125)
1,798
4,843
-
Discount rate for the current period is 10.70%, inflation rate is 5.00% (31
December 2014 - discount rate 8.10%, inflation rate is 5.00%).
TRL 3,828.37 (full TRL) of maximum wage amount which was in effect as of 31
December 2014 was taken as maximum amount for the calculation regarding
the current period.
It was assumed that maximum wage would be increased in inflation rate for
every year.
CSO 1980 table was used for mortality averages of females and males.
As of 31 December 2015, the Bank has recorded in the financial statements TRL
53,380 Thousand reserve for employee termination benefits (31 December 2014 –
TRL 57,994 Thousand).
As of 31 December 2015, the Bank provided a reserve of TRL 3,959 Thousand
(31 December 2014 – TRL 2,723 Thousand) for the unused vacations. This balance
is classified under reserve for employee benefits provisions in the financial
statements.
150
ŞEKERBANK T.A.Ş.
d.1) Movement of employee termination benefits:
As of 1 January
Service Cost
Interest Cost
Actuarial Loss/(Gain) (*)
Indemnity Paid During the Term
Total
(*)
Current Period
57,994
7,709
4,601
(5,208)
(11,716)
53,380
Prior Period
50,879
6,024
4,877
3,325
(7,111)
57,994
Actuarial loss/gain shown under other capital reserves after netting of deferred tax.
e) Information on other provisions:
e.1) Provisions for possible losses: None.
e.2) The breakdown of the sub-accounts if other provisions exceed 10 % of the
grand total of provisions:
Unindemnified Non-Cash Loans
Credit Card Liquid Point Promotion Provisions
Retirement Fund Provision
Legal Case Provisions
Bonus Provision
SDIF Premium Provision
BRSA Pay Provision
Other Provisions
Total
Current Period
42,109
986
7,941
16,359
10,087
2,703
59,739
139,924
Prior Period
52,382
1,401
15,308
19,024
5,907
6,452
100,474
Following the issuance of the justified order in relation to the annulment of the
provisional Article 23 of the Banking Law by the Constitutional Court in the Official
Gazette No: 26731 on 15 December 2007, TBMM started to work on establishing
new legal regulations, the Law No: 5754 “Amendments to the Social Security and
General Health Insurance Act Including Certain Laws and Decrees”, which was
published in the Official Gazette No: 26870 on 8 May 2008 has become effective
following the approval of the General Assembly of the TBMM. The new law decrees
that the contributors of the bank pension funds, the ones who receive salaries
or income from these funds and their rightful beneficiaries will be transferred to
the Social Security Institution and will be subject to this Law within 3 years after
the release date of the related article, without any need for further operation,
and that the three-year transfer period can be prolonged for maximum 2 years
by the Cabinet decision. However related transfer period has been prolonged
for 2 years by the Cabinet decision dated 14 March 2011, which was published in
the Official Gazette dated 9 April 2011 and numbered 27900. In addition, by the
Law “Emendating Social Security and General Health Insurance Act”, which was
published on the Official Gazette dated 8 March 2012 and numbered 28227, this
period of 2 years has been raised to 4 years. Further the transfer period has been
prolonged for one more year by the Cabinet decision dated 08 April 2013, which
was published in the Official Gazette dated 3 May 2013 and numbered 28636. The
prolongation for another one year has been taken by the Cabinet on 24 February
2014, and has been published in the Official Gazette dated 30 April 2014 and
numbered 28987. The Council of Ministers has been lastly authorized to determine
the transfer date in accordance with the last amendment in the first paragraph
of the 20th provisional article of Law No.5510 implemented by the Law No. 6645
on Amendment of the “Occupational Health and Safety Law and Other Laws and
Decree Laws” published in the Official Gazette dated 23 April 2015 and numbered
29335.
•
•
pension fund contributors.
f) Liabilities on pension rights:
f.1) Liabilities for pension funds established in accordance with “Social Security
Institution”:
Şekerbank T.A.Ş. Pension Fund, of which each Bank employee is a member, is
established in accordance with the provisional Article 20 of the Social Security Act
No: 506. As per the provisional article No: 23 of the Banking Law No: 5411, the Bank
pension funds, which were established within the framework of Social Security
Institution Law, should be transferred to the Social Security Institution within 3
years after the issuance of the related law. Methods and principles related to the
transfer have been determined as per the Cabinet decision no: 2006/11345 made
on 30 November 2006. However, the related article of the act has been cancelled
upon the President’s application filed on 2 November 2005 by the Supreme Court’s
order no: E.2005/39, K.2007/33 issued on 22 March 2007, which was published in
the Official Gazette No: 26479 on 31 March 2007 and the execution of the decision
was ceased as of the issuance date of the order.
on the Article 38. There was TRL 7,941 Thousand actuarial deficit in the actuary
no: 2006/11345 on 30 November 2006 (31 December 2014- TRL 42,553 Thousand
actuarial surplus).
151
ŞEKERBANK T.A.Ş.
statements of the Bank (31 December 2014 - None).
The actuary audit, explained above and which is in compliance with the principles
of the related law, calculates the present value of the liability as of 31 December
2015, in other words, the estimated amount to be paid to SGK (Social Insurance
Institution). CSO 1980 mortality table, 9.80 % of technical interest rate, 34.50 %
of premium rate was considered in the actuarial calculation. In the table below,
cash value amount of the health expenses within the framework of Social Security
Institution are shown.
10. Explanations on taxes payable:
a) Information on current tax liability:
a.1) Corporate taxes:
The bank has no corporate tax provision and prepaid tax amount is TRL 8,560
Thousand as of 31 December 2015 (31 December 2014 - Corporate tax provision
was TRL 71,456 Thousand and prepaid tax was TRL 48,359 Thousand).
a.2) Information on taxes payable:
Present values of bonuses and salaries payment including health expenses reserve
are shown following table in accordance with SGK as of 31 December 2015.
31.12.2015
31.12.2014
Reserve of Probable Retirement Pensions
(151,470)
(169,792)
Reserve of Probable Widow and Orphant
(83,566)
(75,930)
(673,365)
(628,220)
Reserve for Salary Portions to be Given to Social
Insurance Institution for those who leave the
Pension Fund
(115,585)
(108,436)
Health and Funeral Expenses Reserve
(98,310)
(118,315)
Assets (*)
368,491
383,977
Reserve of Liability Items
Cash Value of the Premiums of the Active
Members
672,455
685,651
Reserve of Common Members’ Salary Proportion
Receivables from other social insurance
institutions.
73,409
73,618
Actual and Technical Surplus / (Deficit) Amount
(7,941)
42,553
The Pension Fund records the assets by their market value and these market values were
considered for the actuarial work.
(*)
Assets of the Pension Fund consist of following items:
Banks and Other Financial Investments
Associates
Immovable
Other
Total
31.12.2015
215,620
51,500
89,288
12,083
368,491
31.12.2014
278,093
51,091
64,907
6,872
400,963
Current Period
(8,560)
14,086
544
19,797
624
7,334
33,825
Prior Period
23,097
12,363
548
16,894
1,112
7,382
61,396
Current Period
181
362
Prior Period
188
376
-
-
-
-
543
564
Current Period
Prior Period
(60,606)
(49,854)
29,845
16,268
Valuation of Financial Assets
17,299
3,963
Financial Losses
5,886
-
(7,576)
(29,623)
Corporate Tax
Taxation on Securities
Capital Gains Tax on Property
Banking Insurance Transaction Tax (BITT)
Value Added Tax Payable
Other
Total
a.3) Information on premiums:
Social Security Premiums-Employee
Social Security Premiums-Employer
Bank Social Aid Pension Fund PremiumsEmployee
Bank Social Aid Pension Fund Premiums-Employer
Pension Fund Membership Fees and ProvisionsEmployee
Pension Fund Membership Fees and ProvisionsEmployer
Unemployment insurance-Employee
Unemployment insurance-Employer
Other
Total
b) Explanations on deferred tax liabilities, if any:
b.1) Breakdown of deferred tax:
f.2) Liabilities resulting from all kinds of pension funds, foundations etc. which
provide post-retirement benefits for the employees:
Deferred Tax Assets/(Liabilities)
See footnote, f.1 II/9 of Section Five.
Provisions (*)
Tangible Assets Base Differences
Net Deferred Tax Assets/(Liabilities)
(*)
Provisions include employee benefit liabilities, credit card bonuses provisions, legal case
provisions and other provisions.
152
ŞEKERBANK T.A.Ş.
b.2) Current and prior year deferred tax movements are shown in the table below.
Current Period
Prior Period
(29,623)
(39,127)
Deferred Tax Asset/(Liability), Period Beginning
Current Period (Expense) / Income
17,403
14,724
Deferred Tax Classified under Equity
4,644
(5,220)
(7,576)
(29,623)
Deferred Tax Asset/(Liability), Period Ending
11. Information on liabilities regarding assets held for sale and discontinued
operations: None.
Domestic Banks
f) Indicators of the Bank’s income, profitability and liquidity for the previous
periods and possible effects of these future assumptions on the Bank’s equity due
to the uncertainty of these indicators:
Prior Period
TRL
FC
TRL
FC
-
-
-
-
Other Domestic Institutions
-
-
-
-
Banks Abroad
-
271,559
-
248,690
Other Institutions Abroad
-
226,662
-
187,981
Total
-
498,221
-
436,671
13. Information on Shareholders’ Equity:
Preferred stock
(*)
Retained and current year income, profitability and liquidity of the Bank are closely
monitored, reported by the Financial Control, Budget and Strategic Planning
Department to the Board of Directors, Asset and Liability Committee. This
department prognosis the effects of interest, currency and maturity fluctuations
that change these indicators with static and dynamic scenario analysis. Net asset
value, which is defined as the difference of fair values of assets and liabilities, is
measured. Prognoses are made for Bank’s future interest income via simulations
of net interest income and scenario analysis.
g) Information on preferred shares:
a) Presentation of Paid-in capital:
Common stock (*)
d) Information on share capital increases from capital reserves: None.
e) Capital commitments in the last fiscal year and at the end of the following
interim period, the general purpose of these commitments and projected
resources required to meet these commitments: None.
12. Explanations on the number of subordinated loans the Bank used maturity,
interest rate, institution that the loan was borrowed from, and conversion option,
if any:
Current Period
c) Information on share capital increases and their sources; other information on
increased capital shares in current period: The Bank’s paid-in capital has been
increased to TRL 1,158,000 Thousand by contribution in kind in the amount TRL
25,000 Thousand, which composed of TRL 16,475 Thousand from extraordinary
reserves, TRL 4,262 Thousand from subsidiaries and real estate sale profit, TRL
4,263 Thousand from share premium and by cash in the amount of TRL 45,813
Thousand.
The Bank has no preferred shares.
Current Period
Prior Period
1,158,000
1,087,187
-
-
h) Information on marketable securities value increase fund:
Current Period
TRL
Nominal Capital
b) Paid-in capital amount, explanation as to whether the registered share capital
system is applicable at Bank and if so amount of registered share capital ceiling:
Registered share capital system is applied in the Bank: Maximum registered capital
amount is TRL 1,250,000 Thousand.
Capital System
Registered Capital
Paid-in Capital
Maximum
1,158,000
1,250,000
From Subsidiaries, Associations and
Entities Under Common Control
Marketable Securities Available for
Sale
Valuation Difference
Foreign Exchange Difference
Total
FC
Prior Period
TRL
FC
-
-
-
(70,239)
(9,249)
-
-
-
-
-
-
-
(70,239)
(9,249)
-
153
ŞEKERBANK T.A.Ş.
14. Information on legal reserves:
b) Possible losses and commitments related to off-balance sheet items including
items listed below:
Current Period
Prior Period
First legal reserves
77,750
67,287
Second legal reserves
15,106
15,107
Other legal reserves appropriated in accordance
with special legislation
Total
-
-
92,856
82,394
The Bank, within the context of banking activities, undertakes certain
commitments, consisting of loan commitments, letters of guarantee, acceptance
credits and letters of credit.
b.1) Non-cash loans including guarantees, acceptances, financial guarantee and
other letters of credits:
15. Information on extraordinary reserves:
Current Period
Current Period
Prior Period
Reserves appropriated by the General Assembly
997,434
800,338
Retained earnings
-
-
Accumulated losses
-
-
Foreign currency share capital exchange
difference
Total
-
-
997,434
800,338
16. Other Information on Shareholders’ Equity:
102,830
118,515
Bank Loans
398,828
283,477
Letters of Credit
488,906
467,274
Total
990,564
869,266
Current Period
Prior Period
3,334,465
3,429,779
561,358
509,180
b.2) Guarantees, surety ships, and similar transactions:
Definite Letter of Guarantees
Temporary Letter of Guarantees
Surety ships and Similar Transactions
None.
Prior Period
Guarantees
Other Letter of Guarantees
17. Information on other capital reserves:
Total
Actuarial gain/loss is shown under other capital reserves.
c.1) Total amount of non-cash loans:
III. Explanations Related to the Off-Balance Sheet Contingencies and Commitments
-
-
876,394
783,461
4,772,217
4,722,420
Current Period
Prior Period
1. Information on off-balance sheet liabilities:
Letters of Guarantees issued for cash loans
490,296
470,032
With maturity of 1 year or less than 1 year
183,830
340,532
a) Nature and amount of irrevocable loan commitments:
With maturity of more than 1 year
306,466
129,500
Other non-cash loans
5,272,485
5,121,654
Total
5,762,781
5,591,686
Forward Asset Purchase Commitments
Loan Granting Commitments
Current Period
Prior Period
139,182
131,537
747,973
573,412
Payment Commitments for Cheques
640,840
581,746
Commitments for Credit Card Expenditure limits
597,580
589,246
Commitments for Promotions related with Credit
Cards and Banking Transactions
1,278
1,921
Subsidiaries and Associates Capital Commitments
-
-
5,826
6,171
2,132,679
1,884,033
Tax and Fund Obligations for Export Commitments
Total
154
ŞEKERBANK T.A.Ş.
c.2) Information on sectoral risk breakdown of non-cash loans:
Current Period
Agricultural
Farming and raising livestock
Forestry
Fishery
Manufacturing
Mining
Production
Electric, gas and water
Prior Period
TRL
(%)
FC
(%)
TRL
(%)
FC
(%)
17,507
0.47
10,569
0.53
22,854
0.62
18,334
0.98
13,492
0.36
10,569
0.53
16,994
0.46
18,334
0.98
3,787
0.10
-
-
5,569
0.15
-
-
228
0.01
-
-
291
0.01
-
-
531,602
14.09
858,027
43.14
529,436
14.21
807,463
43.25
21,779
0.58
96,390
4.85
23,517
0.63
1,899
0.10
492,023
13.04
746,912
37.55
485,251
13.03
784,504
42.02
17,800
0.47
14,725
0.74
20,668
0.55
21,060
1.13
1,500,966
39.78
433,543
21.80
1,409,991
37.85
382,880
20.51
1,717,333
45.50
687,011
34.53
1,759,278
47.23
658,239
35.26
660,745
17.51
265,044
13.32
699,030
18.77
226,200
12.12
Hotel, food and beverage services
20,384
0.53
17,330
0.87
18,169
0.48
12,976
0.70
Transportation and telecommunication
85,514
2.27
34,353
1.73
94,573
2.54
52,832
2.83
Financial institutions
348,130
9.23
67,916
3.41
293,894
7.89
48,456
2.60
Real estate and renting services
520,078
13.78
189,923
9.55
528,413
14.19
185,857
9.96
-
-
-
-
-
-
-
-
1,647
0.04
-
-
2,133
0.06
424
0.02
80,835
2.14
112,445
5.65
123,066
3.30
131,494
7.03
6,223
0.16
-
-
3,211
0.09
-
-
3,773,631
100.00
1,989,150
100.00
3,724,770
100.00
1,866,916
100.00
Construction
Services
Wholesale and retail trade
Self-employment services
Education services
Health and social services
Other
Total
155
ŞEKERBANK T.A.Ş.
c.3) Information on I st and II nd Group non-cash loans:
Non-cash loans
Bank acceptances
I st Group
II nd Group
TRL
FC
TRL
FC
3,598,037
962,764
145,446
65,970
18,092
377,152
3,000
584
Letters of credit
-
477,395
-
11,511
Endorsements
-
-
-
-
Underwriting commitments
-
-
-
-
Guaranteed prefinancing credits
-
-
-
-
9,056
93,774
-
-
Other commitments and surety
ships
The Bank provided reserve amounting to TRL 42,109 Thousand (31 December
2014 – TRL 52,382 Thousand) for unindemnified non-cash loans amounting to TRL
2. Information related to derivative financial instruments:
Types of trading transactions
Foreign currency related derivative transactions (I):
Forward transactions
Swap transactions
Futures transactions
Option transactions
Interest related derivative transactions (II) :
Forward rate transactions
Interest rate swap transactions
Interest option transactions
Futures interest transactions
Other trading derivative transactions (III)
A. Total trading derivative transactions (I+II+III)
Types of hedging transactions
Fair value hedges
Cash flow hedges
Net investment hedges
B.Total hedging related derivatives
Total Derivative Transactions (A+B)
Current Period
Prior Period
11,766,499
601,088
11,018,727
146,684
1,089,835
12,856,334
11,926,271
821,008
10,986,212
119,051
6,000
6,000
948,160
12,880,431
Related to agreements of forward transactions and options; the information based
on the type of forward and options transactions are disclosed separately, specified
with related amounts, type of agreement, purpose of transaction, nature of risk,
strategy of risk management, hedging relationship, possible effects on the Bank’s
financial position, timing of cash flows, reasons of unrealized transactions which
previously projected to be realized, income and expenses that could not be linked
to income statement in the current period because of the agreements:
The Bank’s derivative instruments consist of foreign currency swaps, option
and forward foreign currency buy/sell transactions. The Bank revalues foreign
currency forward and swap transactions using the Bank’s end of reporting foreign
exchange rates. The resulting gain or loss is reflected in the income statement. In
calculation of fair values of the interest swap contracts, interest amounts to be
paid or received upon the fixed interest rate in the contract and interest amounts
to be received or paid upon the floating interest rates in the contracts have been
recalculated and discounted in accordance to valid interest rates in the current
market and the differences have been reflected to the current term’s income
statement. Some of the derivative instruments, although made for economical
hedging purposes, are accounted as trading transactions since they are not
qualified to be a hedging instrument as per “Financial Instruments: Recognition
and Measurement” (“TAS 39”).
As of 31 December 2015, breakdown of the Bank’s foreign currency forward
and swap transactions based on currencies are disclosed below in their TRL
equivalents:
Forward Forward
Buy
Sell
12,856,334
12,880,431
Swap Option Option Future Future
Sell
Buy
Sell
Buy
Sell
Current
Period
TRL
149,177 150,605
USD
141,437
EURO
OTHER
Total
-
Swap
Buy
814,950 3,284,312 44,639 26,756
139,507 2,260,447 1,639,043
27,221 45,034
-
-
-
-
9,749
9,749 2,785,532
801,747
872
2,162
-
-
2,766
3,081
336,561
-
-
-
-
303,129 302,942 6,041,916 6,061,663 72,732 73,952
-
-
321,653 1,019,040 2,813,028 39,803 19,250
-
-
82,438 2,194,887 2,195,695
9,306 41,644
-
-
698,723
9,048
-
-
-
252,581
-
-
-
-
410,583 410,807 5,952,058 5,960,027 58,157 60,894
-
-
180,987
Prior
Period
TRL
94,185
USD
309,073
EURO
OTHER
Total
3,705
3,620
2,714 2,676,817
4,002
61,314
As of 31 December 2015, the Bank has no cash flow hedges (31 December 2014 – None).
As of 31 December 2015, the Bank has no hedge of net investment in foreign
operations (31 December 2014 – None).
156
ŞEKERBANK T.A.Ş.
3. Explanations on contingent liabilities and assets:
5. The information on the Bank’s rating by the international rating introductions:
a.1) The Bank's share in contingent liabilities arising from entities under common
control together with other venturer: None.
The results of the ratings performed are shown below:
a.2) Share of entity under common control in its own contingent liabilities: None.
a.3) The Bank’s contingent liabilities resulting from liabilities of other venturers in
entity under common control: None.
b) Accounting and presentation of contingent assets and liabilities in the financial
statements:
b.1) Contingent assets are accounted for, if probability of realization is almost
certain. If probability of realization is high, then it is explained in the footnotes. As
of 31 December 2015, there are no contingent assets that need to be explained.
b.2) A provision is made for contingent liabilities, if realization is probable and the
amount can reliably be determined. If realization is remote or the amount cannot
be determined reliably, then it is explained in the footnotes.
As of 31 December 2015, there are 1,160 continuing legal cases against the Bank
based on information received from the Law Department of the Bank. The total
amount of these cases is TRL 52,159 Thousand. Provision amount for these cases
is TRL 16,359 Thousand. (According to the information obtained from the Law
Department of the Bank, as of 31 December 2014, numbers of continuing legal
cases against the Bank were 1,936. Total amount of those cases was TRL 58,917
Thousand. TRL 15,308 Thousand of provision was allocated for those cases).
c) Explanations on revocable commitments: As of 31 December 2015, the Bank’s
revocable commitments amount is TRL 264,199 Thousand (31 December 2014 - TRL
303,821 Thousand).
4. Custodian and intermediary services:
Information related with custodian and intermediary services is given in the
financial structure section under the name of the “Explanations related to
transactions made on behalf of others and fiduciary transaction based on trust” in
XI item.
Fitch Ratings: February 2015
JCR: July 2014
Foreign Currency
Foreign Currency
Long Term
BB-
International Long Term
BBB-
Short Term
B
International Short Term
A-3
Outlook
Stable
Local Currency
BBB-
BB-
A-3
Local Currency
Long Term
Short Term
B
Outlook
Stable
Outlook
Stable
Long Term National
AA- (Trk)
National
A +(tur)
Short Term National
A-1+ (Trk)
Outlook
Viability
Stable
Support Rating
2
Support Rating
bb-
Individual Rating
AB
Foreign Currency
5
Moody’s: December 2014
Foreign Currency
Capital Intelligence: December 2015
Long Term
Ba2
Short Term
NP
Local Currency
Long Term
Ba2
Foreign Currency
Long Term
BB
Short Term
B
Financial Strength Rate
BB
Short Term
NP
Support Rating
4
National Long Term
A3.tr
Outlook
Negative
National Short Term
TR-2
Outlook
Negative
D-
157
ŞEKERBANK T.A.Ş.
IV. Explanations Related to the Income Statement
d) Information on interest income received from associates and subsidiaries:
1. a) Information on interest income on loans:
Current Period
FC
TRL
FC
1,901,145
133,965
1,758,590
121,907
Short Term Loans
956,874
40,552
907,015
39,282
Medium and Long Term Loans
923,609
93,413
817,357
82,625
Interest on Loans (*)
Interest on Non-Performing
Loans
Premiums received from
Resource Utilization Support
Fund
(*)
Prior Period
TRL
20,662
-
34,218
-
-
-
Banks (*)
Domestic Banks
Foreign Banks
Branches and Head Office
Abroad
Includes fees and commissions obtained from cash loans.
Other Financial Institutions
Total
Current Period
TRL
The Central Bank of Turkey
Domestic Banks
Foreign Banks
Branches and Head Office Abroad
Total
FC
Prior Period
TRL
FC
-
97
-
-
375
33
870
107
98
1,764
231
1,448
-
-
-
-
473
1,894
1,101
1,555
Current Period
(*)
Prior Period
TRL
FC
TRL
FC
4,290
65,594
4,536
44,306
-
-
-
-
3,768
2,066
4,536
2,366
522
63,528
-
41,940
-
-
-
-
-
-
-
-
4,290
65,594
4,536
44,306
Includes fees and commission expenses of cash loans.
b) Information on interest expense to associates and subsidiaries:
Current Period
Prior Period
3,654
1,723
Interest Expense to Associates
and Subsidiaries
Current Period
Prior Period
TRL
FC
TRL
FC
154
281
405
138
Financial assets at fair value
through profit and loss
-
-
-
-
Available-for-sale securities
119,324
-
71,205
-
Held-to-maturity securities
115,874
32
139,169
26
235,352
313
210,779
164
Total
6,034
c) Information on interest expense to marketable securities issued:
c) Interest income from marketable securities portfolio:
Trading securities
6,288
Current Period
-
b) Information on interest received from banks:
Prior Period
2. a) Information on interest expense on funds borrowed:
-
Current Period
Interest Income Received from
Associates and Subsidiaries
Interest expense on securities
issued
Prior Period
TRL
FC
TRL
FC
90,720
-
104,347
-
158
ŞEKERBANK T.A.Ş.
d) Distribution of interest expense on deposits based on maturity of deposits:
Time Deposits
Account Name
Demand
Deposits
Up to
1 Month
Up to
3 Months
Up to
6 Months
Up to
1 Year
More than
1 Year
Accumulated
Deposits
-
43,303
11,081
377
142
-
-
54,903
122
16,610
477,193
18,953
11,344
16,050
34
540,306
Total
TRL
Bank deposits
Saving deposits
Commercial deposits
-
1
567
25
75
94
-
762
40
16,107
116,469
8,231
2,120
3,333
2
146,302
Other deposits
1
589
69,876
776
624
38
-
71,904
7 days call accounts
-
-
-
-
-
-
-
-
Precious metal deposits
-
-
-
-
-
-
-
-
163
76,610
675,186
28,362
14,305
19,515
36
814,177
Total
Foreign Currency
Bank deposits
60
1,312
53,159
4,763
4,403
17,189
-
80,886
1,755
5
2,013
-
-
-
-
3,773
-
-
-
-
-
-
-
-
183
-
-
-
-
-
-
183
Total
1,998
1,317
55,172
4,763
4,403
17,189
-
84,842
Grand Total
2,161
77,927
730,358
33,125
18,708
36,704
36
899,019
5. Information on other operating income:
3. Information on dividend income:
Trading Securities
Current Period
Prior Period
-
-
Financial assets at fair value
through profit and loss
-
-
-
-
Other
7,350
1,266
Total
7,350
1,266
Current Period
Prior Period
12,080,281
5,850,415
10,757
47,859
4. Information on net trading income:
Income
Profit on capital market operations
Profit on derivative financial instruments
Foreign exchange gains
Losses (-)
Losses on capital market operations
Losses on derivative financial instruments
Foreign exchange losses
1,237,881
758,896
10,831,643
5,043,660
12,298,850
5,884,546
381
2,025
1,324,434
938,688
10,974,035
4,943,833
The information on the factors affecting the Bank’s income including new
developments, and the explanation on nature and amount of income earned from
such items:
As of 31 December 2015, TRL 237,917 Thousand stated under other operating
income in the income statement includes TRL 136,055 Thousand prior years’
expense and provisions reversal income and TRL 101,862 Thousand other operating
income.
As of 31 December 2015, prior years expense and provision reversal income
includes TRL 79,227 Thousand collection and reversal of specific provisions of cash
loans, TRL 27,480 Thousand reversal of non-cash provisions, TRL 2,939 Thousand of
securities impairment provision reversal and TRL 26,409 Thousand reversal of legal
case provision and other provisions.
expense and provisions reversal income and TRL 55,896 Thousand other operating
income.
includes TRL 95,444 Thousand collection and reversal of specific provisions of cash
loans, TRL 16,569 Thousand reversal of non-cash provisions,TRL 517 Thousand of
securities impairment provision reversal and TRL 17,682 Thousand reversal of legal
case provision and other provisions.
159
ŞEKERBANK T.A.Ş.
6. Provision expenses of banks for loans and other receivables:
Specific provisions for loans and other receivables
Current Period
Prior Period
346,716
250,464
III. Group Loans and Receivables
78,866
50,051
IV. Group Loans and Receivables
103,991
56,081
V. Group Loans and Receivables
163,859
144,332
15,901
27,824
General loan loss provision expenses
Provision expenses for possible losses
Marketable securities impairment losses
Investment securities available for sale
Impairment provision expense
Associates
Subsidiaries
Entities under common control
-
-
43
55
42
19
1
36
1,546
624
-
-
-
-
-
-
1,546
624
Other (*)
66,925
17,150
Total
431,131
296,117
Investments held to maturity
Other provisions includes TRL 16,400 Thousand unindemnified non-cash loans provision (31
December 2014 – TRL TRL 13,185 Thousand unindemnified non-cash loan).
(*)
“Other” includes TRL 25,000 Thousand premiums paid to the Saving Deposit Insurance
Fund and TRL 2,520 Thousand legal case provision and TRL 10,000 Thousand bonus provision
(31 December 2014 – TRL 24,500 Thousand to the Saving Deposit Insurance Fund premium
provision and TRL 19,000 Thousand bonus provision).
(**)
Other expenses include TRL 26,000 Thousand communication expenses, TRL 16,908
Thousand computer usage expenses, TRL 5,437 Thousand promotion applications related with
credit cards and banking services (31 December 2014 - TRL 24,922 Thousand communication
expenses, TRL 19,144 Thousand computer usage expenses, TRL 2,773 Thousand promotion
applications related with credit cards and banking services).
8. Information on profit/ (loss) from continued and discontinued operations before
taxes:
Profit before tax of the Bank has decreased by 69.63 % for the period ended 31
December 2015 as compared to the related prior period. In comparison with the
related prior period, the Bank’s operating income decreased by 0.57 %, net fees
and commissions’ income increased by 16.37 %, provision expenses increased
by 45.59 %, other operating income increased by 27.84 % and other operating
expenses increased by 6.56 %.
9. Information on tax provision for continued and discontinued operations:
a) As of 31 December 2015, current tax charge: None (31 December 2014 – TRL
71,456 Thousand current tax charge) and deferred tax benefit is TRL 17,403
Thousand (31 December 2014 – TRL 14,724 Thousand deferred tax benefit).
(*)
b) Deferred tax benefit on temporary differences is TRL 17,403 Thousand
(31 December 2014 – TRL 14,724 Thousand deferred tax benefit).
7. Information on other operating expenses:
Personnel expenses
Reserve for employee termination benefits
Bank social aid provision fund deficit provision
Impairment losses on fixed assets
Depreciation expenses of fixed assets
Impairment losses on intangible assets
Goodwill impairment losses
Depreciation expenses of intangible assets
Impairment for investments accounted for under
equity method
Impairment losses on assets held for resale
Current Period
Prior Period
360,022
341,636
594
3,790
7,941
-
-
159
24,025
30,481
-
-
-
-
22,800
16,591
-
-
2,249
2,573
12,282
4,058
-
-
Other operating expenses
303,243
294,048
Services Rent expenses
57,712
51,543
Maintenance expenses
15,348
11,552
Depreciation expenses of assets held for resale
Impairment losses on assets held for sale
Advertisement expenses
Other expenses (**)
Loss on sales of assets
Other
Total
(*)
14,527
19,074
215,656
211,879
476
114
118,990
106,646
852,622
800,096
10. Information on net profit/ (loss) from continued and discontinued operations:
The net profit of the Bank decreased for the period ended 31 December 2015 by
54.17 % as compared to the related prior period profit.
11. The explanations on net profit/ (loss) for the period:
a) The nature and amount of certain income and expense items from ordinary
operations is disclosed if the disclosure for nature, amount and repetition rate of
such items is required for the complete understanding of the Bank's performance
for the period: None.
b) Effect of changes in accounting estimates on income statement for the current
and, if any, for subsequent periods: None.
c) If the other items in the income statement exceed 10 % of the income statement
total, accounts amounting to at least 20 % of these items are shown below:
Other Fees and commissions received
Banking Services Income
Other Fees and commissions given
Fees and commissions given to Banks
Fees and commissions given for Credit Cards
Current Period
Prior Period
277,766
226,956
Current Period
Prior Period
11,702
21,407
23,834
14,526
Other
19,850
13,738
Total
55,386
49,671
160
ŞEKERBANK T.A.Ş.
d) Nature and amount of changes in accounting estimates, which have a material
effect on current period or expected to have a material effect on subsequent
periods: None.
V. Explanations Related to Statement of Shareholders' Equity Movement
1. Information on the corrections related with the Accounting Standards of
Financial Instruments in current period
1.a) Increase after the revaluation of the available for sale investments
Value increase or loss from the revaluation of available for sale investment
is recorded under shareholders equity. The value decrease recorded under
shareholders equity is TRL 87,799 Thousand. Net value decrease from available for
sale investments is TRL 70,239 Thousand after deferred tax asset amounting to
TRL 17,560 Thousand.
1.b) Information about increases that occurred on items for protection from cash
flow risk
i. Information on the items for cash flow hedges at the beginning and end of the
period and confirmation
There are no items for hedging the cash flow risk at the beginning and end of the
periods.
ii. Any gain or loss arising from, a derivative or non-derivative financial asset or
liability designated as hedging instrument in cash flow hedge and , amount which
recorded in the current period, under equity.
There is no derivative specified as protection device from risk and any gain or loss
concerning non-derivative financial assets and obligations.
iii. Information on the reconciliation of foreign currency gain/(loss) at the beginning
and end period
There is no foreign currency gain / (loss) in the shareholders equity.
2. Cash and cash equivalents at beginning of periods
The recorded amounts of the cash and cash equivalent assets at the balance sheet
and the recorded amounts in the cash flow statement:
01.01.2015
01.01.2014
Cash
194,540
279,941
Central Bank
188,930
398,783
4
3
124,472
120,898
Other
Cash Equivalents
Banks (Maturity is less than 3 months)
Total Cash and Cash Equivalents
73,185
54,305
581,131
853,930
31.12.2015
31.12.2014
3. Cash and cash equivalents at the end of periods
Cash
Central Bank
173,701
194,540
363,269
188,930
4
4
86,559
124,472
Other
Cash Equivalents
Banks (Maturity is less than 3 months)
-
73,185
623,533
581,131
VII. Explanations on the Risk Group of the Bank
1. Volume of related party transactions, income and expense amounts involved and
outstanding loan and deposit balances:
a) Current Period:
VI. Explanations Related to Statement of Cash Flows
1. The effects of the other items stated in the cash flow statement and the changes
in foreign currency exchange rates on cash and cash equivalents:
“Net increase/decrease in other liabilities” amounting to TRL 4,369 Thousand
(31 December 2014 - TRL 23,945 Thousand) in “Changes in operating assets and
liabilities” consists of changes in sundry creditors, other liabilities and interbank
money market borrowings. “Net increase/decrease in other assets” with a total
amount of TRL 446,084 Thousand (31 December 2014 - TRL 454,785 Thousand)
consists of changes in sundry debtors and other assets.
The effect of change in foreign exchange rate on “cash and cash equivalents” is
an increase amounting to TRL 80,794 Thousand (31 December 2014 - TRL 30,419
Thousand increase).
Related Parties
Subsidiaries
and Associates
Cash
Non-Cash
Direct and
Indirect
Shareholders
of the Bank
Other Entities
Included
in the Risk Group
Cash Non-Cash
Cash
Non-Cash
Loans and other
receivables
Balance at
beginning of period 46,270
18,730 355,511
42,241
-
-
Balance at
end of period
21,219 398,308
47,233
-
-
350
-
-
Interest and
commission income
26,266
6,288
140
25,631
161
ŞEKERBANK T.A.Ş.
2. Disclosures for related parties:
b) Prior Period:
Related Parties
Subsidiaries
and Associates
Direct and
Indirect
Shareholders
of the Bank
Other Entities
Included
in the Risk Group
Cash
Cash Non-Cash
Cash
Non-Cash
Non-Cash
Loans and other
receivables
35,312 317,083
40,751
-
-
Balance at
end of period
18,730 355,511
42,241
-
-
Interest and
commission income
6,034
132
22,699
308
-
-
c.1) Information on related party deposits balances:
Related parties
Subsidiaries
and Associates
Direct and Indirect
Shareholders
of the Bank
Other Entities
Included
in the Risk Group
Current
Period
Prior
Period
Current
Period
Prior
Period
Current
Period
Prior
Period
Balance at beginning
of period
85,903
69,212
90,946
193,553
-
-
Balance at
end of period
166,173
85,903
53,626
90,946
-
-
3,654
1,723
6,519
9,967
-
-
Deposits
Cash loans
Amount
Shares (%)
424,574
2.54
Non-cash loans
68,452
1.19
Deposits
219,799
1.48
Forward transactions and option agreements
394,816
3.07
These transactions are priced in accordance with the general pricing policies of the
Bank and are in line with market rates.
c) In cases separate disclosure is not necessary, in order to present the total
impact on the financial statements, total of similar items: Explained in b).
d) Transactions accounted under the equity method: None.
c.2) Information on forward and option agreements and other similar agreements
made with related parties:
Related Parties
In the normal course of its banking activities, the Bank conducted various business
transactions with related parties at commercial terms and at rates which
approximate market rates.
b) Nature of the transactions amount and ratio to the total volume of transactions,
amount of major items and ratio to all items, pricing policies and other factors:
Balance at
beginning of period 49,453
46,270
a) The relations of the Bank with the entities controlled by the Bank and its related
parties, regardless of whether there are any transactions or not:
Subsidiaries
and Associates
Current
Period
Prior
Period
Direct and Indirect
Shareholders
of the Bank
Current
Period
Prior
Period
Other Entities
Included in the
Risk Group
Current
Period
Prior
Period
Transactions
Held for Trading
Beginning Balance
369,385
223,566
-
-
-
-
Ending Balance
394,816 369,385
-
-
-
-
Total Profit/Loss (*)
(82,938)
-
-
-
-
(39,243)
(*)
The Bank and its subsidiaries do not conduct derivative transactions “for-profit”, derivative
transactions for hedging is carried out in the framework of subsidiaries’ risk management
policy. The risks arising from derivative transactions conducted with subsidiaries are covered by
the derivative transactions with third parties.
e) Disclosures related to purchase and sale of real estate and other assets, services
given/received, agency contracts, leasing contracts, transferring information
as a result of research and development, license contracts, financing (including
supports in the form of loans, capital in cash and capital in kind), guarantees, and
management contracts:
The Bank enters into lease agreements with Şeker Finansal Kiralama A.Ş. As
of 31 December 2015 the total leasing obligations related to those agreements
amounted to TRL 484 Thousand (31 December 2014 - TRL 6,641 Thousand).
Additionally, the Bank provides agency services for Şeker Yatırım Menkul Değerler
A.Ş. through its branches.
With-in the limits of the Banking Law, the Bank renders cash and non-cash loans
to its related parties and the ratio of these loans to the Bank’s total cash and noncash loan portfolio is 2.19 % as of end of the reporting period. Details of these loans
are explained in the Section V, Note VII 1a.
As of 31 December 2015 the Bank has no purchases and sale of real estate and
other assets, transfer of information as a result of research and development, and
management contracts with the related parties.
f) Benefits provided to top management personnel during current period amount
to TRL 19,802 Thousand (31 December 2014 - TRL 19,688 Thousand).
162
ŞEKERBANK T.A.Ş.
VIII. Explanations and notes related to subsequent events
SECTION SIX
OTHER EXPLANATIONS
On 26 January 2016, as a result of assessment of the year 2015, Kobirate
International Credit Rating and Corporate Management Services increased the
Bank’s Corporate Governance rating to 9.17 (91.70 %)
I. Explanations on the Operations of the Bank:
None.
On 1 February 2016 within the scope of the decision of the Capital Market Board
dated 7 September 2015 and numbered 25/1103, the Bank has completed the
domestic sale of TRQSKBK71622 ISIN code bond with TRL 40,500 Thousand
nominal value and 175 days maturity ( on 26 July 2016) to qualified investors.
SECTION SEVEN
INDEPENDENT AUDITOR’S REPORT
dated 7 September 2015 and numbered 25/1103, the Bank has completed the
domestic sale of TRQSKBK51616 ISIN code bond with TRL 57,500 Thousand nominal
value and 91 days maturity (on 3 May 2016) to qualified investors.
Executive Vice Presidents Nejat Bilginer and Feyza Önen resigned as of 1 February
2016; Ramazan Karademir retired from his duties as of 1 February 2016.
None.
IX. Explanations on the Bank’s domestic branches, agencies and branches abroad
and off-shore branches
1. Explanations on the Bank’s domestic branches, agencies and branches abroad
and off-shore branches:
Number of Number of
Branches Employees
301
4,078
Rep-offices Abroad
-
-
Branches abroad
-
-
Country
Total Assets
Capital
-
-
-
-
Off-shore Branches
-
-
2. Explanations on Branch and Agency Openings or Closings of the Bank:
None.
The unconsolidated financial statements for the year ended 31 December 2015
were audited by Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik
AŞ (the Turkish member firm of KPMG International Cooperative, a Swiss entity)
and Independent Auditors’ Report dated 12 February 2016 is presented in the
introduction of this report.
II. Other Footnotes and Explanations Prepared by Independent Auditors:
On 8 February 2016, the Bank announced that Servet Taze will be appointed as
General Manager following the approval of BRSA and General Manager Halit
Haydar Yıldız will be appointed as the member of Board of Director with the
decision of the Board of Directors.
Domestic branches
I. Explanations on the Independent Auditor’s Report:
ŞEKERBANK TÜRK ANONİM ŞİRKETİ AND
ITS FINANCIAL SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
WITH INDEPENDENT AUDITORS’ REPORT THEREON
(CONVENIENCE TRANSLATION OF CONSOLIDATED
FINANCIAL STATEMENTS AND RELATED DISCLOSURES AND
FOOTNOTES ORIGINALLY ISSUED IN TURKISH)
AKİS BAĞIMSIZ DENETİM VE SERBEST
MUHASEBECİ MALİ MÜŞAVİRLİK
ANONİM ŞİRKETİ
26 FEBRUARY 2016
THIS REPORT CONTAINS “INDEPENDENT AUDITORS’ REPORT”
COMPRISING 1 PAGES AND; CONSOLIDATED FINANCIAL STATEMENTS
AND RELATED DISCLOSURES AND FOOTNOTES” COMPRISING 72 PAGES.
Convenience Translation of the Independent Auditors’ Report
Originally Prepared and Issued in Turkish to English
To the Board of Directors of Şekerbank T.A.Ş.
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Şekerbank T.A.Ş. (the “Parent Bank”) and its financial subsidiaries (collectively the “Group”) which comprise the consolidated statement
of financial position as at 31 December 2015, and the consolidated statement of income, statement of consolidated income and expense items accounted under shareholders’ equity, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the “Banking Regulation and Supervision Agency (“BRSA”) Accounting and
Reporting Legislation” which includes the “Regulation on Accounting Applications for Banks and Safeguarding of Documents” published in the Official Gazette No.26333 dated 1 November 2006, and other
regulations on accounting records of Banks published by Banking Regulation and Supervision Board and circulars and interpretations published by BRSA and requirements of Turkish Accounting Standards for the
matters not regulated by the aforementioned legislations, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance the “Regulation on Independent Audit of the Banks” published
in the Official Gazette No.29314 dated 2 April 2015 by BRSA and Independent Standards on Auditing which is a component of the Turkish Auditing Standards published by the Public Oversight Accounting and
Auditing Standards Authority (“POA”). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s
preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained during our audit is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Şekerbank T.A.Ş. as at 31 December 2015, and its consolidated financial
performance and its consolidated cash flows for the year then ended in accordance with BRSA Accounting and Reporting Legislation.
Report on Other Legal and Regulatory Requirements
1) Pursuant to the fourth paragraph of Article 402 of the Turkish Commercial Code (“TCC”); no significant matter has come to our attention that causes us to believe that for the period 1 January - 31 December 2015,
the Bank’s bookkeeping activities are not in compliance with TCC and provisions of the Bank’s articles of association in relation to financial reporting.
2) Pursuant to the fourth paragraph of Article 402 of the TCC; the Board of Directors of the Parent Bank provided us the necessary explanations and required documents in connection with the audit.
Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.
Orhan Akova, SMMM
Partner
26 February 2016
İstanbul, Türkiye
As explained in Section 3.I, the accompanying consolidated financial statements are not intended to present the consolidated financial position and results of consolidated operations in accordance with the
accounting principles and practices generally accepted in countries and jurisdictions other than Turkey.
THE CONSOLIDATED FINANCIAL REPORT OF
ŞEKERBANK T.A.Ş.
Address
:
Telephone
:
Fax
:
Web Site
:
E-mail Address :
Emniyet Evleri Mah. Eski Büyükdere Cad. No:1/1A
34415 Kağıthane / İstanbul
(212) 319 70 00
(212) 319 73 79
www.sekerbank.com.tr
malikontrol@sekerbank.com.tr
The consolidated financial report designed by the Banking Regulation and Supervision Agency in line with Communiqué on Financial Statements to be Publicly Announced
and the Related Policies and Disclosures consists of the sections listed below:
• GENERAL INFORMATION ABOUT THE PARENT BANK
• CONSOLIDATED FINANCIAL STATEMENTS OF THE PARENT BANK
• EXPLANATIONS ON THE CORRESPONDING ACCOUNTING POLICIES APPLIED
• INFORMATION ON FINANCIAL STRUCTURE OF THE GROUP WHICH IS UNDER CONSOLIDATION
• EXPLANATORY DISCLOSURES AND FOOTNOTES ON CONSOLIDATED FINANCIAL STATEMENTS
• OTHER EXPLANATIONS AND FOOTNOTES
• INDEPENDENT AUDITORS’ REPORT
The subsidiaries financial statements of which are consolidated within the framework of the reporting package are as follows:
Subsidiaries
Şekerbank (Kıbrıs) Ltd.
Zahlungsdienste GmbH der Şekerbank T.A.Ş.
The consolidated financial statements and the explanatory footnotes and disclosures, unless otherwise indicated, are prepared in thousands of Turkish Lira, in accordance with the
Communiqué on Banks’ Accounting Practice and Maintaining Documents, Turkish Accounting Standards, Turkish Financial Reporting Standards, related communiqués and the Banks’
records, have been independently audited and presented as attached.
The consolidated financial statements 31 December 2015 are audited and they do not include any false explanation in material subjects and absences that may result in misleading
statements and fairly reflect the Bank’s financial position, the risks faced and uncertainty.
Viktor ROMANYUK
Chairman of The Board of Directors
Halit Haydar YILDIZ
General Manager
Orhan ULUYOL
Group Head
Information related to responsible personnel for the questions about financial statements:
Name-Surname / Title
Telephone No
Fax No
: Oya SARI / Investor Relations and Structured Finance Manager
: (212) 319 71 58
: (212) 319 71 62
Murat ISHMUKHAMEDOV
INDEX
I.
II.
III.
IV.
V.
VI.
VII.
SECTION ONE
General Information
Page Number
The Parent Bank’s Incorporation Date, Beginning Statue, Changes in the Existing Statue
Explanations Regarding the Parent Bank’s Shareholding Structure, Shareholders Holding Directly or Indirectly, Collectively or Individually, the Managing and Controlling Power and Changes in Current Year, if any and
Explanations on the Controlling Group of the Parent Bank Explanations Regarding the Chairman and the Members of Board of Directors, Audit Committee, General Manager and Executive Vice Presidents and Their Shares in the Parent Bank
Information about the person and institutions that have qualified shares Summary on the Bank’s Functions and Areas of Activity Differences Between The Communiqué On Preparation Of Consolidated Financial Statements Of Banks And Turkish Accounting Standards And Short Explanatıon About The Institutions Subject To
Line-By-Line Method Or Proportional Consolidation And Institutions Which Are Deducted From Equity Or Not Included In These Three Methods
The Existing Or Potential, Actual Or Legal Obstacles On The Transfer Of Shareholders’ Equity Between The Parent Bank And its Subsidiaries Or The Reimbursement of Liabilities
168
168
168
169
169
169
169
SECTION TWO
Consolidated Financial Statements
I.
II.
III.
IV.
V.
VI.
VII.
Consolidated Balance Sheet (Consolidated Statement of Financial Position)
Consolidated Statement of Off Balance Sheet Contingencies and Commitments
Consolidated Statement of Income
Consolidated Statement of Profit and Loss Accounted for Under Equity
Consolidated Statement of Changes in Shareholders’ Equity
Consolidated Statement of Cash Flow
Profit Distribution Table
170
172
173
174
175
176
177
SECTION THREE
Accounting Principles
I.
Basis of Presentation II.
Information about the Consolidated Subsidiaries
III.
Explanations on Usage Strategy of Financial Assets and Foreign Currency Transactions
VI.
Explanations on Foreign Currency Transactions V.
Explanations on Forward and Option Contracts and Derivative Instruments
VI.
Interest Income and Expenses VII. Fees and Commission Income and Expenses VIII. Explanations on Financial Assets IX.
Explanations on Impairment on Financial Assets
X.
Offsetting of Financial Assets and Liabilities
XI.
Explanations on Sales and Repurchase Agreements and Lending of Securities XII. Explanations on Assets Held For Sale and Discontinued Operations
178
178
178
179
179
179
179
179
181
181
181
182
182
182
182
183
183
184
184
185
185
185
186
186
SECTION FOUR
Information on Financial Structure
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
Explanations Related to the Consolidated Capital Adequacy Standard Ratio
Explanations Related to the Consolidated Credit Risk
Explanations Related to the Consolidated Market Risk
Explanations Related to the Consolidated Operational Risk
Explanations Related to the Consolidated Currency Risk
Explanations Related to the Consolidated Interest Rate Risk
Explanations Related to the Consolidated Stock Position Risk
Explanations Related to the Consolidated Liquidity Risk
Explanations Related to Consolidated Securitization Position Risk
Explanations Related to the Consolidated Credit Risk Mitigation Techniques
Explanations Related to Consolidated Risk Management Objective and Policies
Explanations Related to Consolidated Leverage Ratio
Explanations Related to Presentation of Financial Assets and Liabilities at Fair Value
Explanations Related to Transactions Made on Behalf of Others and Transactions Based On Trust
186
190
197
199
199
201
204
204
210
210
210
211
212
212
SECTION FIVE
Explanations and Disclosures on Consolidated Financial Statements
I.
II.
III.
IV.
V.
VI.
VII.
VIII
IX.
Explanations Related to the Consolidated Assets
Explanations Related to the Consolidated Liabilities
Explanations Related to the Consolidated Off-Balance Sheet Contingencies and Commitments Explanations Related to the Consolidated Income Statement
Explanations Related to the Consolidated Statement of Shareholders’ Equity Movement
Explanations Related to the Consolidated Statement of Cash Flows
Explanations on the Risk Group of the Parent Bank
Explanations and Notes Related to Subsequent events
Explanations on the Parent Bank’s Domestic Branches, Agencies and Branches Abroad and Off-shore Branches
213
226
232
236
238
239
239
240
240
SECTION SIX
Other Explanations
I.
Explanations on the Operations of the Group
240
SECTION SEVEN
Independent Auditor’s Report
I.
II.
Explanations on the Independent Auditor’s Report
Other Footnotes and Explanations Prepared by the Independent Auditors
240
240
168
ŞEKERBANK T.A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SECTION ONE
GENERAL INFORMATION
III. Explanations Regarding the Chairman and the Members of Board of Directors,
Audit Committee, General Manager and Executive Vice Presidents and Their
Shares in the Parent Bank
I. The Parent Bank’s Incorporation Date, Beginning Statue, Changes in the Existing
Statue
Şekerbank T.A.Ş. (“the Parent Bank”) founded as a Turkish bank by 14 partners
started its operations in 1953 as Pancar Kooperatifleri Bankası A.Ş. in Eskişehir, and
in 1956 the Bank changed its name to Şekerbank T.A.Ş and moved its headquarters
to Ankara in 1956. 15 % of the Parent Bank shares were offered to public in 1997
and currently 34.19 % of the Parent Bank shares are publicly traded. The Parent
Bank’s one of the main shareholders, Şekerbank T.A.Ş. Personeli Munzam Sosyal
Güvenlik ve Yardımlaşma Sandığı Vakfı, provide its members with additional social
rights and retirement guarantees within the social security system. The Parent
Bank has affiliates and subsidiaries in the finance and tourism sectors.
Title
Chairman of the
Board of Directors
Name and Surname
Dr.Hasan Basri Göktan
Responsibility Areas
Chairman & Executive Board Member,
Credit Committee, Corporate Governance
Committee, Remuneration Committee
General Manager
Halit Haydar Yıldız (***)
Board Member, General Manager, Credit
Committee
Members of the
Board of Directors
Victor Romanyuk (*)
Vice-Chairman, Remuneration Committee,
Audit Committee
Committee
Committee
Corporate Governance Committee,
Internal Systems
Independent Director, Remuneration
Committee
Corporate Governance Committee, Audit
Committee
-
Emin Erdem
Erdal Batmaz
Business line of the Parent Bank covers extending all kinds of cash and noncash loans in Turkish Lira and foreign currency and carrying out capital market
transactions, accepting deposits in TRL and FC and providing other banking
services.
Halil Can Yeşilada
Üzeyir Baysal
II. Explanations Regarding The Parent Bank’s Shareholding Structure, Shareholders
Holding Directly or Indirectly, Collectively or Individually, the Managing and
Controlling Power and Changes in Current Year, if any and Explanations on the
Controlling Group of the Parent Bank
Khosrow Kashani Zamani
Murat Ishmukhamedov (*)
Daniyar Amanov
Name of Shareholders
Amounts of
Share
410,389
BTA Securities JSC
Public offerings
Others
Total
Share (%)
Paid in
Capital
Unpaid
Capital
35.4395
410,389
-
224,353
19.3742
224,353
-
126,295
10.9063
126,295
-
395,954
34.1928
395,954
-
1,009
0.0872
1,009
-
1,158,000
100.0000
1,158,000
-
Executive Vice
Presidents
Ali Güray Demir
Çetin Aydın
Nejat Bilginer (**)
Nihat Büyükbozkoyun
Selim Güray Çelik
Gökhan Ertürk
Ramazan Karademir (**)
Orhan Karakaş
Fatin Rüştü Karakaş
Salih Zeki Önder
Feyza Önen (**)
Hüseyin Serdar
Ahmet İlerigelen
Credit Legal and Administrative Follow -up
Audit
Human Resources
Operations
Financial Control, Budgeting and Strategic
Planning, Corporate Governance
Committee
Retail Banking Marketing
Internal Control and Risk Management
Marketing
Retail Credit Management
Treasury
Support Services
Corporate and Commercial Credit
Management and Monitoring
(*)
According to Communiqué Regarding Determination and Enforcement of Corporate
Governance Principles of CMB, Serial: II No: 17.1, Audit Committee members of the banks are
accepted as independent members of the Board of Directors. Murat Ishmukhamedov and
Victor Romanyuk are Audit Committee Members of the Bank.
(**)
Executive Vice Presidents Nejat Bilginer and Feyza Önen resigned as of 1 February 2016;
Ramazan Karademir was retired as of 1 February 2016.
(***)
On 8 February 2016, the Parent Bank announced that according to the Board of Directors
decision Servet Taze would be appointed as the General Manager following the approval of the
BRSA and the General Manager Halit Haydar Yıldız would be appointed as the member of Board
of Director.
169
ŞEKERBANK T.A.Ş.
SECTION TWO
The Chairman of the Board of Directors Dr. Hasan Basri Göktan has total shares
of 0.05 % in nominal, amounting to TRL 577 Thousand, Khosrow Kashani Zamani
who is the Board of Directors Member has total shares of 0.013 % in nominal,
amounting to TRL 148 Thousand which they obtained from public offering.
IV. Information About the Persons and Institutions That Have Qualified Shares in
the Parent Bank
Name/ Commercial Name
Amounts of
Share TRL
Thousand
410,389
BTA Securities JSC
Paid in
Capital TRL
Share (%) Thousand
Unpaid
Capital
35.4395
410,389
-
224,353
19.3742
224,353
-
126,295
10.9063
126,295
-
V. Summary on the Parent Bank’s Functions and Areas of Activity
Business line of the Parent Bank covers extending all kinds of cash and noncash loans in Turkish Lira and foreign currency and carrying out capital market
transactions, accepting deposits in TRL and FC and providing other banking
services. As of 31 December 2015, the Parent Bank has 301 domestic branches (31
December 2014 - 312 domestic branches).
VI. Differences Between The Communiqué On Preparation Of Consolidated
Financial Statements Of Banks And Turkish Accounting Standards And Short
Explanation About The Institutions Subject To Line-By-Line Method Or
Proportional Consolidation And Institutions Which Are Deducted From Equity Or
Not Included In These Three Methods
The Parent Bank’s subsidiaries Şekerbank (Kıbrıs) Ltd., Şeker Finansal Kiralama
A.Ş., Şekerbank International Banking Unit Ltd., Şeker Yatırım Menkul Değerler A.Ş.,
Şeker Faktoring A.Ş., Şeker Mortgage Finansman A.Ş. and Zahlungsdienste GmbH
der Şekerbank T.A.Ş. are included in the scope of consolidation by line-by-line
method.
Seltur Turistik İşletmeler Yatırım A.Ş. is not consolidated in the financial statements
and is recorded at cost since the Parent Bank has no control and it is not a financial
subsidiary.
VII. The Existing Or Potential, Actual Or Legal Obstacles On The Transfer Of
Shareholders' Equity Between The Parent Bank And its Subsidiaries Or The
Reimbursement Of Liabilities
There is no transfer of the shareholders’ equity between the Parent Bank and its
subsidiaries. Dividend distribution from shareholders equity is done according to
related regulations. There is no existing or potential, actual or legal obstacle to the
payback of liabilities between the Parent Bank and its subsidiaries.
I. Consolidated Balance Sheet (Consolidated Statement of Financial Position)
II. Consolidated Statement of Off Balance Sheet Contingencies and Commitments
III. Consolidated Statement of Income
IV. Consolidated Statement of Profit and Loss Accounted for Under Equity
V. Consolidated Statement of Changes in Shareholders’ Equity
VI. Consolidated Statement of Cash Flows
VII. Profit Distribution Table
170
ŞEKERBANK T.A.Ş.
CONSOLIDATED BALANCE SHEET
(CONSOLIDATED STATEMENT OF FINANCIAL POSITION)
TRL THOUSAND
I.
II.
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.2.3
2.2.4
III.
IV.
4.1
4.2
4.3
V.
5.1
5.2
5.3
VI.
6.1
6.1.1
6.1.2
6.1.3
6.2
6.3
VII.
VIII.
8.1
8.2
IX.
9.1
9.2
9.2.1
9.2.2
X.
10.1
10.2
XI.
11.1
11.2
11.2.1
11.2.2
XII.
12.1
12.2
12.3
12.4
XIII.
13.1
13.2
13.3
XIV.
XV.
15.1
15.2
XVI.
XVII.
17.1
17.2
XVIII.
18.1
18.2
XIX.
ASSETS
CASH AND BALANCES WITH THE CENTRAL BANK
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (Net)
Held for trading financial assets
Share certificates
Derivative financial assets held for trading
Share certificates
Loans
BANKS
MONEY MARKET PLACEMENTS
Interbank money market placements
Istanbul Stock Exchange money market placements
Receivables from reverse repurchase agreements
FINANCIAL ASSETS AVAILABLE FOR SALE (Net)
Share certificates
LOANS AND RECEIVABLES
Loans and Receivables
Loans to Risk Group of the Bank
Other
Non-performing loans
Specific provisions (-)
FACTORING RECEIVABLES
HELD TO MATURITY INVESTMENTS (Net)
INVESTMENTS IN ASSOCIATES (Net)
Accounted for under equity method
Unconsolidated associates
Financial investments
Non-financial investments
INVESTMENTS IN SUBSIDIARIES (Net)
Unconsolidated financial subsidiaries
Unconsolidated non-financial subsidiaries
ENTITIES UNDER COMMON CONTROL (JOINT VENT.) (Net)
Consolidated under equity method
Unconsolidated
Financial subsidiaries
Non-financial subsidiaries
FINANCE LEASE RECEIVABLES (Net)
Finance lease receivables
Operating lease receivables
Other
Unearned income ( - )
DERIVATIVE FINANCIAL ASSETS FOR HEDGING PURPOSES
Fair value hedge
Cash flow hedge
Hedge of net investment risks in foreign operations
TANGIBLE ASSETS (Net)
INTANGIBLE ASSETS (Net)
Goodwill
Other
INVESTMENT PROPERTY (Net)
TAX ASSET
Current tax asset
Deferred tax asset
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net)
Held for sale
OTHER ASSETS
TOTAL ASSETS
Note Ref.
(1)
(2)
(3)
(4)
(5)
(18)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
TRL
560.919
494.354
111.624
14.577
92.979
4.068
382.730
382.730
27.847
7.000
7.000
1.724.973
1.717.577
7.396
14.271.873
13.794.891
31.938
13.762.953
1.032.951
(555.969)
309.647
1.271.320
1.267.890
3.430
4.236
4.236
4.236
621
621
97.682
115.486
(17.804)
897.843
101.269
101.269
18.910
437
18.473
135.187
135.187
299.825
20.223.506
Audited
Current Period
31/12/15
FC
2.276.636
51.895
51.895
7.808
44.087
72.891
2.649.521
2.649.521
381.220
2.268.301
5.094
(5.094)
413
413
237.928
271.763
(33.835)
1.998
2
2
163.964
Total
2.837.555
546.249
163.519
22.385
137.066
4.068
382.730
382.730
100.738
7.000
7.000
1.724.973
1.717.577
7.396
16.921.394
16.444.412
413.158
16.031.254
1.038.045
(561.063)
309.647
1.271.733
1.268.303
3.430
4.236
4.236
4.236
621
621
335.610
387.249
(51.639)
899.841
101.269
101.269
18.912
439
18.473
135.187
135.187
463.789
TRL
260.494
473.514
124.801
15.175
109.188
438
348.713
348.713
34.799
8.000
8.000
1.056.757
1.049.873
6.884
12.870.055
12.537.560
51.815
12.485.745
865.213
(532.718)
254.191
1.369.180
1.364.520
4.660
4.236
4.236
4.236
621
621
97.675
114.536
(16.861)
957.962
74.211
74.211
17.701
203
17.498
672
672
215.232
Audited
Prior Period
31/12/14
FC
2.084.349
46.027
46.027
5.207
40.820
111.383
1.934.690
1.934.690
315.580
1.619.110
4.062
(4.062)
329
329
240.738
276.762
(36.024)
1.634
158.275
5.455.248
25.678.754
17.695.300
4.577.425
The accompanying notes are an integral part of these consolıdated financial statements
Total
2.344.843
519.541
170.828
20.382
150.008
438
348.713
348.713
146.182
8.000
8.000
1.056.757
1.049.873
6.884
14.804.745
14.472.250
367.395
14.104.855
869.275
(536.780)
254.191
1.369.509
1.364.849
4.660
4.236
4.236
4.236
621
621
338.413
391.298
(52.885)
959.596
74.211
74.211
17.701
203
17.498
672
672
373.507
22.272.725
171
ŞEKERBANK T.A.Ş.
I.
1.1
1.2
II.
III.
IV.
4.1
4.2
4.3
V.
5.1
5.2
5.3
VI.
6.1
6.2
VII.
VIII.
IX.
X.
10.1
10.2
10.3
10.4
XI.
11.1
11.2
11.3
XII.
12.1
12.2
12.3
12.4
12.5
XIII.
13.1
13.2
XIV.
14.1
14.2
XV.
XVI.
16.1
16.2
16.2.1
16.2.2
16.2.3
16.2.4
16.2.5
16.2.6
16.2.7
16.2.8
16.2.9
16.2.10
16.3
16.3.1
16.3.2
16.3.3
16.3.4
16.4
16.4.1
16.4.2
16.5
LIABILITIES
DEPOSITS
Deposits from Risk Group of the Bank
Other
DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING
FUNDS BORROWED
MONEY MARKET BALANCES
Interbank money market takings
Istanbul Stock Exchange money market takings
Funds provided under repurchase agreements
MARKETABLE SECURITIES ISSUED (Net)
Bills
Bonds
FUNDS
Borrower funds
Other
SUNDRY CREDITORS
OTHER LIABILITIES
FACTORING PAYABLES
FINANCE LEASE PAYABLES (Net)
Finance lease payables
Operating lease payables
Other
Deferred finance lease expenses ( - )
DERIVATIVE FINANCIAL LIABILITIES FOR HEDGING PURPOSES
Fair value hedge
Cash flow hedge
PROVISIONS
General loan loss provisions
Restructuring provisions
Reserve for employee benefits
Insurance technical provisions (Net)
Other provisions
TAX LIABILITY
Current tax liability
Deferred tax liability
PAYABLES RELATED TO ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
Held for sale
SUBORDINATED LOANS
SHAREHOLDERS' EQUITY
Paid-in capital
Supplementary capital
Share premium
Marketable securities value increase fund
Investment property revaluation differences
Bonus shares obtained from associates, subsidiaries and jointly controlled entities (Joint Vent.)
Hedging funds (Effective portion)
Accumulated valuation differences from assets held for sale and from discontinued operations
Profit reserves
Legal reserves
Status reserves
Extraordinary reserves
Other profit reserves
Profit or loss
Prior years’ income/ (loss)
Current year income/ (loss)
Minority shares
TOTAL LIABILITIES AND EQUITY
Note Ref.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(18)
(14)
(15)
(17)
TRL
9.177.140
42.822
9.134.318
21.712
412.156
2.060.413
148.055
27.000
1.885.358
1.310.579
507.307
764.218
39.054
131
131
116.143
208.792
739
11.112
13.543
(2.431)
378.523
178.870
61.029
138.624
44.979
37.403
7.576
2.607.256
1.158.000
178.780
1.834
(70.366)
163.499
82.046
1.767
1.116.021
98.448
1.016.905
668
110.867
15.854
95.013
43.588
16.349.675
TRL THOUSAND
Audited
Current Period
31/12/15
FC
Total
TRL
5.716.404
14.893.544
8.030.933
18.254
61.076
82.103
5.698.150
14.832.468
7.948.830
35.314
57.026
6.510
2.824.946
3.237.102
356.858
2.060.413
1.495.118
148.055
6.002
27.000
28.697
1.885.358
1.460.419
1.310.579
1.118.933
507.307
401.196
764.218
642.648
39.054
75.089
131
754
131
754
233.261
349.404
279.343
7.465
216.257
198.885
739
592
11.112
13.543
(2.431)
6.263
384.786
333.936
754
179.624
163.778
372
61.401
64.016
5.137
143.761
106.142
16
44.995
96.854
16
37.419
65.796
7.576
31.058
498.221
498.221
7.189
2.614.445
2.475.401
1.158.000
1.087.187
178.780
201.044
1.834
4.815
(70.366)
(9.292)
163.499
207.986
82.046
1.767
(2.465)
7.114
1.123.135
900.921
2.459
100.907
86.792
1.016.905
813.461
4.655
5.323
668
(688)
110.179
244.610
(1.219)
14.635
1.862
531
95.544
242.748
763
44.351
41.639
Audited
Prior Period
31/12/14
FC
5.588.602
12.461
5.576.141
52.692
1.677.818
1.164
1.164
109.541
8.075
1.336
652
294
390
31
31
436.671
2.678
3.134
2.139
995
(1.045)
(1.372)
327
589
Total
13.619.535
94.564
13.524.971
59.202
2.034.676
1.496.282
7.166
28.697
1.460.419
1.118.933
401.196
642.648
75.089
754
754
388.884
206.960
592
335.272
164.430
64.310
106.532
96.885
65.827
31.058
436.671
2.478.079
1.087.187
201.044
4.815
(9.292)
207.986
(2.465)
904.055
88.931
813.461
1.663
243.565
490
243.075
42.228
9.329.079
7.878.608
22.272.725
25.678.754
14.394.117
172
ŞEKERBANK T.A.Ş.
A. OFF BALANCE SHEET CONTINGENCIES AND COMMITMENTS (I+II+III)
I.
GUARANTEES AND SURETIES
1.1.
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
1.2.
Bank loans
1.2.1.
Import letter of acceptance
1.2.2.
Other bank acceptances
1.3.
Letters of credit
1.3.1.
Documentary letters of credit
1.3.2.
Other letters of credit
1.4.
Prefinancing given as guarantee
1.5.
Endorsements
1.5.1.
Endorsements to the Central Bank of Turkey
1.5.2.
Other endorsements
1.6.
Securities issue purchase guarantees
1.7.
Factoring guarantees
1.8.
Other guarantees
1.9.
Other sureties
II.
COMMITMENTS
2.1.
Irrevocable commitments
2.1.1.
Forward asset purchase commitments
2.1.2.
Forward deposit purchase and sales commitments
2.1.3.
Share capital commitment to associates and subsidiaries
2.1.4.
Loan granting commitments
2.1.5.
Securities underwriting commitments
2.1.6.
Commitments for reserve deposit requirements
2.1.7.
Payment commitment for checks
2.1.8.
Tax and fund liabilities from export commitments
2.1.9.
Commitments for credit card expenditure limits
2.1.10.
Commitments for promotions related with credit cards and banking activities
2.1.11.
Receivables from short sale commitments
2.1.12.
Payables for short sale commitments
2.1.13.
Other irrevocable commitments
2.2.
Revocable commitments
2.2.1.
Revocable loan granting commitments
2.2.2.
Other revocable commitments
III.
DERIVATIVE FINANCIAL INSTRUMENTS
3.1
Derivative financial instruments for hedging purposes
3.1.1
Fair value hedge
3.1.2
Cash flow hedge
3.1.3
3.2
Held for trading transactions
3.2.1
Forward foreign currency buy/sell transactions
3.2.1.1
Forward foreign currency transactions-buy
3.2.1.2
Forward foreign currency transactions-sell
3.2.2
Swap transactions related to f.c. and interest rates
3.2.2.1
Foreign currency swap-buy
3.2.2.2
Foreign currency swap-sell
3.2.2.3
Interest rate swaps-buy
3.2.2.4
Interest rate swaps-sell
3.2.3
Foreign currency, interest rate and securities options
3.2.3.1
Foreign currency options-buy
3.2.3.2
Foreign currency options-sell
3.2.3.3
Interest rate options-buy
3.2.3.4
Interest rate options-sell
3.2.3.5
Securities options-buy
3.2.3.6
Securities options-sell
3.2.4
Foreign currency futures
3.2.4.1
Foreign currency futures-buy
3.2.4.2
Foreign currency futures-sell
3.2.5
Interest rate futures
3.2.5.1
Interest rate futures-buy
3.2.5.2
Interest rate futures-sell
3.2.6
Other
B. CUSTODY AND PLEDGED ITEMS (IV+V+VI)
IV.
ITEMS HELD IN CUSTODY
4.1.
Assets under management
4.2.
Investment securities held in custody
4.3.
Checks received for collection
4.4.
Commercial notes received for collection
4.5.
Other assets received for collection
4.6.
Assets received for public offering
4.7.
Other items under custody
4.8.
Custodians
V.
PLEDGED ITEMS
5.1.
Marketable securities
5.2.
Guarantee notes
5.3.
Commodity
5.4.
Warranty
5.5.
Properties
5.6.
Other pledged items
5.7.
Pledged items-depository
VI.
ACCEPTED INDEPENDENT GUARANTEES AND WARRANTIES
TOTAL OFF BALANCE SHEET ACCOUNTS (A+B)
Note Ref.
(1)
(1)
(3)
(2)
TRL
10.240.075
3.776.055
3.747.038
126.247
3.620.791
21.092
12.360
8.732
7.925
2.388.397
2.096.475
55.286
733.331
647.736
5.826
598.850
1.278
54.168
291.922
289.346
2.576
4.075.623
4.075.623
299.782
149.177
150.605
3.704.446
420.134
3.284.312
71.395
44.639
26.756
336.477.070
5.860.555
484.186
2.460.239
49.110
9.864
2.857.155
1
330.426.305
75.976.229
22.452.512
230.505.672
1.491.892
190.210
346.717.145
Audited
Current Period
31/12/15
TRL THOUSAND
FC
10.021.009
2.011.226
1.028.967
9.851
1.019.116
387.949
387.949
488.906
488.906
105.404
95.477
88.539
83.896
4.643
6.938
6.938
7.914.306
7.914.306
301.306
151.618
149.688
6.447.876
4.846.502
1.601.374
75.289
28.093
47.196
1.089.835
115.941.020
1.202.503
385.535
170.899
10.669
546.190
89.210
114.731.315
312
20.044.657
4.606.563
90.051.894
27.889
7.202
Total
20.261.084
5.787.281
4.776.005
136.098
4.639.907
409.041
400.309
8.732
488.906
488.906
113.329
2.483.874
2.185.014
139.182
737.974
647.736
5.826
598.850
1.278
54.168
298.860
289.346
9.514
11.989.929
11.989.929
601.088
300.795
300.293
10.152.322
5.266.636
4.885.686
146.684
72.732
73.952
1.089.835
452.418.090
7.063.058
869.721
2.631.138
59.779
556.054
2.946.365
1
445.157.620
312
96.020.886
27.059.075
320.557.566
1.519.781
197.412
TRL
9.810.405
3.725.550
3.710.484
104.474
3.606.010
7.962
75
7.887
7.104
2.147.279
1.822.301
40.178
548.471
588.612
6.171
590.538
1.921
46.410
324.978
324.078
900
3.937.576
3.937.576
412.085
90.432
321.653
3.466.438
650.410
2.810.028
3.000
3.000
59.053
39.803
19.250
293.295.367
4.065.759
707.574
3.282.029
55.571
9.442
11.142
1
289.064.323
343
65.591.227
19.519.287
202.496.625
1.456.841
165.285
125.962.029
472.679.174
303.105.772
Audited
Prior Period
31/12/14
FC
10.163.426
1.892.729
1.014.310
13.109
1.001.201
291.812
291.812
467.274
467.274
119.333
101.259
95.441
91.359
4.082
5.818
5.818
8.169.438
8.169.438
401.550
316.398
85.152
6.759.730
4.595.167
2.164.563
59.998
18.354
41.644
948.160
93.501.404
1.176.567
323.676
218.964
5.690
553.951
74.286
92.318.533
2.418
16.246.091
3.068.829
72.968.195
33.000
6.304
Total
19.973.831
5.618.279
4.724.794
117.583
4.607.211
299.774
291.887
7.887
467.274
467.274
126.437
2.248.538
1.917.742
131.537
552.553
588.612
6.171
590.538
1.921
46.410
330.796
324.078
6.718
12.107.014
12.107.014
813.635
406.830
406.805
10.226.168
5.245.577
4.974.591
3.000
3.000
119.051
58.157
60.894
948.160
386.796.771
5.242.326
1.031.250
3.500.993
61.261
563.393
85.428
1
381.382.856
2.761
81.837.318
22.588.116
275.464.820
1.489.841
171.589
103.664.830
406.770.602
173
ŞEKERBANK T.A.Ş.
CONSOLIDATED STATEMENT OF INCOME
I.
1.1
1.2
1.3
1.4
1.5
1.5.1
1.5.2
1.5.3
1.5.4
1.6
1.7
II.
2.1
2.2
2.3
2.4
2.5
III.
IV.
4.1
4.1.1
4.1.2
4.2
4.2.1
4.2.2
V.
VI.
6.1
6.2
6.3
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.
XVI.
16.1
16.2
XVII.
XVIII.
18.1
18.2
18.3
XIX.
19.1
19.2
19.3
XX.
XXI.
21.1
21.2
XXII.
XXIII.
23.1
23.2
INCOME STATEMENT
INTEREST INCOME
Interest on loans
Interest received from reserve deposits
Interest received from banks
Interest received from money market placements
Interest received from marketable securities portfolio
Held-for-trading financial assets
Available-for-sale financial assets
Investments held-to-maturity
Finance lease income
Other interest income
INTEREST EXPENSE
Interest on funds borrowed
Interest on money market borrowings
Interest on securities issued
Other interest expense
NET INTEREST INCOME (I - II)
NET FEES AND COMMISSIONS INCOME
Non-cash loans
Other
Fees and commissions paid
Non-cash loans
Other
DIVIDEND INCOME
NET TRADING INCOME/LOSSES (NET)
Capital Market Trading gains/ (losses)
Derivative Instrument gains/(loses)
Foreign exchange gains/ (losses)
OTHER OPERATING INCOME
NET OPERATING INCOME (III+IV+V+VI+VII)
PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-)
OTHER OPERATING EXPENSES (-)
NET OPERATING INCOME/(LOSS) (VIII-IX-X)
AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER
GAIN / (LOSS) ON EQUITY METHOD
GAIN / (LOSS) ON NET MONETARY POSITION
PROFIT/(LOSS) FROM CONTINUED OPERATIONS BEFORE TAXES (XI+…+XIV)
TAX PROVISION FOR CONTINUED OPERATIONS (±)
NET PROFIT/(LOSS) FROM CONTINUED OPERATIONS (XV±XVI)
INCOME ON DISCONTINUED OPERATIONS
Income on assets held for sale
Income on sale of associates, subsidiaries and jointly controlled entities (Joint vent.)
Income on other discontinued operations
LOSS FROM DISCONTINUED OPERATIONS (-)
Loss from assets held for sale
Loss on sale of associates, subsidiaries and jointly controlled entities (Joint vent.)
Loss from other discontinued operations
PROFIT / (LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII-XIX)
TAX PROVISION FOR DISCONTINUED OPERATIONS (±)
NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI)
NET PROFIT/LOSS (XVII+XXII)
Group’s profit/loss
Non-controlling interest
Earnings per share
Note Ref.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(8)
(9)
(10)
(11)
Audited
Current Period
01.01.2015 - 31.12.2015
2.428.045
2.140.711
7.995
3.665
1.502
236.199
700
119.324
116.175
29.480
8.493
1.298.027
905.827
119.500
147.761
101.100
23.839
1.130.018
299.824
363.236
63.787
299.449
63.412
345
63.067
1.757
(230.523)
11.505
(17.577)
(224.451)
249.307
1.450.383
454.474
915.716
80.193
80.193
17.459
(2.359)
19.818
97.652
97.652
95.544
2.108
0,086
TRL THOUSAND
Audited
Prior Period
01.01.2014 - 31.12.2014
2.254.081
1.993.030
728
4.480
3.416
212.591
1.936
71.205
139.450
32.247
7.589
1.181.857
867.254
87.142
98.836
119.382
9.243
1.072.224
262.276
315.015
67.810
247.205
52.739
306
52.433
1.269
(48.819)
47.666
(174.670)
78.185
195.135
1.482.085
315.815
859.428
306.842
306.842
(59.165)
(75.030)
15.865
247.677
247.677
243.075
4.602
0,223
Currency translation differences
Profit/Loss from derivative financial instruments for cash flow hedge purposes
(Effective portion of fair value differences)
Profit/Loss from derivative financial instruments for hedge of net investment in foreign operations
(Effective portion of fair value differences)
The effect of corrections of errors and changes in accounting policies
Other profit loss items accounted under equity due to TAS
Deferred tax of valuation differences
Total Net Profit/Loss accounted under equity (I+II+…+IX)
Profit/Loss
Change in fair value of marketable securities (Transfer to Profit/Loss)
Reclassification and transfer of derivatives accounted for cash flow hedge purposes to Income Statement
Transfer of hedge of net investments in foreign operations to Income Statement
Other
Total Profit/Loss accounted for the period (X±XI)
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
11.1
11.2
11.3
11.4
XII.
Additions to marketable securities revaluation differences for available for sale financial assets
I.
TRL THOUSAND
Audited
86.284
91.030
-
-
6.622
97.652
(11.368)
4.639
5.304
-
-
-
3.649
-
51.383
(76.343)
271.485
220.306
-
-
27.371
247.677
23.808
(5.287)
(3.410)
-
-
-
1.061
-
36.703
(5.259)
Current Period
Prior Period
01.01.2015 - 31.12.2015 01.01.2014 - 31.12.2014
Audited
CONSOLIDATED GAINS AND LOSSES RECOGNISED IN EQUITY
ŞEKERBANK T.A.Ş.
174
Cash-flow hedge
Capital increase
4.1
4.2
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
Other
Profit distribution
Other
XV.
XVI.
XVII.
XVIII.
18.1
18.2
18.3
Cash-flow hedge
Capital increase
Cash
Internal sources
Share premium
Other
Profit distribution
Other
IV.
4.1
4.2
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
12.1
12.2
XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
18.1
18.2
18.3
III.
Changes in period
01.01.2015 - 31.12.2015
CURRENT PERIOD
Audited
II.
I.
XIV.
Closing Balance (III+IV+V+……+XVIII+XIX+XX)
-
Internal sources
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Cash
Share premium
12.2
-
-
-
-
-
-
-
-
-
-
XIII.
12.1
-
-
-
IV.
-
-
-
III.
Changes in period
01.01.2014 - 31.12.2014
PRIOR PERIOD
II.
I.
Audited
STATEMENT CHANGES IN SHAREHOLDERS’ EQUITY
Note
Ref.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.834
-
-
-
-
-
-
-
-
-
(4.263)
1.278
(2.985)
4
-
-
-
-
-
-
-
-
-
-
-
4.815
4.815
-
-
-
-
-
-
-
-
4.263
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
552
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share
certificate
Share cancellation
premium
profits
100.907
-
11.976
-
11.976
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
88.931
88.931
-
11.355
-
11.355
-
-
-
-
-
-
-
-
84
-
-
-
-
-
-
-
-
-
-
-
77.492
Legal
Reserves
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.016.905
-
219.919
-
219.919
-
-
-
-
-
(16.475)
(16.475)
-
-
-
-
-
-
-
-
-
-
-
-
813.461
813.461
-
203.481
-
203.481
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
609.980
Statutory Extraordinary
Reserves
Reserves
TRL THOUSAND
7.090
-
-
-
-
-
4.243
-
-
-
-
-
-
-
-
-
3.649
-
-
-
-
-
-
-
-
(802)
(802)
-
-
-
-
-
(2.728)
-
-
-
-
-
-
(66)
-
-
1.061
-
-
-
-
-
-
-
-
931
Other
Reserves
95.544
-
-
-
-
95.544
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
243.075
-
-
-
-
243.075
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Current
Period
Net
Income/
(Loss)
14.635
-
(231.895)
(1.000)
(232.895)
-
-
-
-
-
-
-
-
-
-
-
-
-
3.965
-
-
-
-
-
243.565
490
-
(214.836)
(59)
(214.895)
-
-
-
-
-
-
-
-
(92)
-
-
-
-
-
64
-
-
-
-
-
215.413
Prior
Period
Net
Income/
(Loss)
(70.366)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(61.074)
-
(9.292)
(9.292)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4.207)
-
(5.085)
Marketable
Securities
Value
Increase
Fund
163.499
-
-
-
-
-
-
-
-
-
(4.262)
-
(4.262)
-
(82.046)
-
-
-
-
41.821
-
-
-
-
-
207.986
207.986
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29.774
-
-
-
-
-
178.212
Tangible and
Intangible
Assets
Revaluation
Differences
1.158.000
-
-
-
-
-
-
-
-
-
25.000
45.813
70.813
-
-
-
-
-
-
-
-
-
-
-
-
1.087.187
1.087.187
-
-
-
-
-
-
-
-
-
-
87.187
87.187
-
-
-
-
-
-
-
-
-
-
-
-
1.000.000
Paid-in
Capital
Effect of
inflation
Accounting
on Capital
and Other
Capital
Reserves
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bonus
shares
obtained
from
Associates
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Hedging
Funds
82.046
-
-
-
-
-
-
-
-
-
-
-
-
-
82.046
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Acc.
valuation diff.
from assets
held for sale
and assets
from disc. op.
2.570.094
-
-
(1.000)
(1.000)
95.544
4.243
-
-
-
-
47.091
47.091
4
-
-
3.649
-
-
45.786
-
-
-
(61.074)
-
2.435.851
2.435.851
-
-
(59)
(59)
243.075
(2.728)
-
-
4.263
-
87.187
87.187
(74)
-
-
1.061
-
-
29.838
-
-
-
(4.207)
-
2.077.495
Total
Equity
Before
Minority
Shares
44.351
-
-
-
2.108
(138)
-
-
-
-
-
-
2
-
-
151
-
-
-
-
-
-
-
-
42.228
42.228
-
-
(3)
(3)
4.602
79
-
-
-
-
-
-
(1.409)
-
-
(1.384)
-
-
-
-
-
-
-
-
40.343
Noncontrolling
Interest
CONSOLIDATED STATEMENT
OF CHANGES IN SHAREHOLDERS’ EQUITY
ŞEKERBANK T.A.Ş.
2.614.445
-
-
(1.000)
(1.000)
97.652
4.105
-
-
-
-
47.091
47.091
6
-
-
3.800
-
-
45.786
-
-
-
(61.074)
-
2.478.079
2.478.079
-
-
(62)
(62)
247.677
(2.649)
-
-
4.263
-
87.187
87.187
(1.483)
-
-
(323)
-
-
29.838
-
-
-
(4.207)
-
2.117.838
Total
Equity"
175
176
ŞEKERBANK T.A.Ş.
CONSOLIDATED STATEMENT OF CASH FLOWS
TRL THOUSAND
Note Ref.
Audited
Curent Period
01.01.2015 - 31.12.2015
Audited
Prior Period
01.01.2014 - 31.12.2014
A.
CASH FLOWS FROM BANKING OPERATIONS
1.1
Operating profit before changes in operating assets and liabilities
(240.448)
78.514
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7
1.1.8
1.1.9
Interest received
Interest paid
Dividend received
Other income
Collections from previously written off loans
Payments to personnel and service suppliers
Taxes paid
Others
2.267.788
(1.285.649)
1.247
363.236
249.307
252.227
(431.331)
(33.814)
(1.623.459)
2.181.957
(1.114.595)
1.234
315.015
273.320
289.453
(414.726)
(51.383)
(1.401.761)
1.2
Changes in operating assets and liabilities
525.221
(337.710)
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
1.2.8
1.2.9
1.2.10
Net (increase) decrease in financial assets held for trading
Net (increase) decrease in financial assets at fair value through profit or loss
Net (increase) decrease in due from banks and other financial institutions
Net (increase) decrease in loans
Net (increase) decrease in other assets
Net increase (decrease) in bank deposits
Net increase (decrease) in other deposits
Net increase (decrease) in funds borrowed
Net increase (decrease) in matured payables
Net increase (decrease) in other liabilities
(7.165)
(133)
(1.895.142)
(598.180)
1.060.910
769.381
1.196.573
(1.023)
10.511
2.122
(1.677.039)
(444.584)
858.871
632.319
272.649
7.441
I.
Net cash provided from banking operations
284.773
(259.196)
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
Net cash provided from investing activities
(448.176)
(455.904)
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
Cash paid for purchase of entities under common control, associates and subsidiaries
Cash obtained from sale of entities under common control, associates and subsidiaries
Fixed assets purchases
Fixed assets sales
Cash paid for purchase of financial assets available for sale
Cash obtained from sale of financial assets available for sale
Cash paid for purchase of investment securities
Cash obtained from sale of investment securities
Others
(39.488)
136.037
(2.078.835)
1.376.573
(4.458)
212.970
(50.975)
(3.333)
328
(40.587)
124.217
(12.355.434)
11.876.717
(219.057)
207.432
(46.187)
C.
CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net cash provided from financing activities
3.1
3.2
3.3
3.4
3.5
3.6
Cash obtained from funds borrowed and securities issued
Cash used for repayment of funds borrowed and securities issued
Capital increase
Dividends paid
Payments for finance leases
Other
IV.
Effect of change in foreign exchange rate on cash and cash equivalents
V.
Net increase / (decrease) in cash and cash equivalents
VI.
Cash and cash equivalents at beginning of the period
(2)
556.097
847.749
VII.
Cash and cash equivalents at end of the period
(3)
671.522
556.097
(1)
(1)
(1)
193.714
391.234
1.033.142
(889.782)
47.091
(1.000)
4.263
-
961.846
(662.000)
91.450
(62)
-
85.114
32.214
115.425
(291.652)
177
ŞEKERBANK T.A.Ş.
PROFIT DISTRIBUTION TABLE
TRL THOUSAND
I.
DISTRIBUTION OF CURRENT YEAR INCOME (*)
1.1
1.2
1.2.1
1.2.2
1.2.3
CURRENT YEAR INCOME
TAXES AND DUTIES PAYABLE (-)
Corporate tax (Income tax)
Income witholding tax
Other taxes and duties (**)
A.
NET INCOME FOR THE YEAR (1.1-1.2)
1.3
1.4
1.5
PRIOR YEARS’ LOSSES (-)
FIRST LEGAL RESERVES (-)
OTHER STATUTORY RESERVES (-)
B.
NET INCOME AVAILABLE FOR DISTRIBUTION [(A-(1.3+1.4+1.5)]
1.6
1.6.1
1.6.2
1.6.3
1.6.4
1.6.5
1.7
1.8
1.9
1.9.1
1.9.2
1.9.3
1.9.4
1.9.5
1.10
1.11
1.12
1.13
1.14
FIRST DIVIDEND TO SHAREHOLDERS (-)
SECOND DIVIDEND TO SHAREHOLDERS (-)
STATUTORY RESERVES (-)
EXTRAORDINARY RESERVES
OTHER RESERVES
SPECIAL FUNDS
II.
DISTRIBUTION OF RESERVES
2.1
2.2
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5
2.4
2.5
DISTRIBUTED RESERVES
DIVIDENDS TO SHAREHOLDERS (-)
III.
EARNINGS PER SHARE
3.1
3.2
3.3
3.4
IV.
DIVIDEND PER SHARE
4.1
4.2
4.3
4.4
Audited
Current Period 31/12/15
Audited
Prior Period 31/12/14
85.246
17.403
17.403
280.701
(56.732)
(71.456)
14.724
102.649
223.969
-
10.462
-
102.649
213.507
-
213.571
-
-
-
0,090
9
-
0,201
20
-
-
-
(*)
Based on the local regulations, no profit is distributed from the consolidated income. The distribution table is presented unconsolidated basis accordingly.The decision for dividend payment is made at the Annual
General Meeting. Annual General Meeting has not been held as of the reporting date.
(**)
Defered tax gain is not included in the profit distribution in accordance with 2004/3 Numbered circular of BRSA.
178
ŞEKERBANK T.A.Ş.
SECTION THREE
ACCOUNTING PRINCIPLES
I. Basis of Presentation
The Parent Bank prepares financial statements and notes according to
Communiqué on Banks’ Accounting Practice and Maintaining Documents, other
regulations, communiqués and circulars in respect of accounting and financial
reporting and pronouncements issued by the Banking Regulation and Supervision
Agency (BRSA) and the Turkish Accounting Standards (TAS) and the Turkish
Financial Reporting Standards (TFRS) and the related statements and guidances
announced by the Public Oversight, Accounting and Auditing Standards Authority
(“POA”).
The effects of differences between accounting principles and standards set
out by regulations in conformity with Article 37 and Article 38 of the Banking
Act No. 5411, accounting principles generally accepted in countries in which the
accompanying consolidated financial statements are to be distributed and the
International Financial Reporting Standards (“IFRS”) have not been quantified in the
accompanying consolidated financial statements. Accordingly, the accompanying
consolidated financial statements are not intended to present the financial
position, results of operations and changes in financial position and cash flows in
accordance with the accounting principles generally accepted in such countries
and IFRS.
II. Information about the Consolidated Subsidiaries
The accompanying consolidated financial statements are prepared in accordance
with “Communiqué on Preparation of Consolidated Financial Statements of Banks”
published in the Official Gazette dated November 8, 2006 numbered 26340. The
Parent Bank and the subsidiaries included in the consolidation are referred to as
“the Group” in this report.
The financial statements of the subsidiaries, which were prepared in accordance
with the prevailing principles and rules regarding financial accounting and
reporting standards in their respective country of incorporation and the Turkish
Commercial Code and/or Financial Leasing, Factoring and Financing Companies
Law and/or communiqués of the Capital Market Board and/or the BRSA, are duly
adjusted in order to present their financial statements in accordance with the
accounting policies of the Parent Bank.
Explanations on Consolidation Method and Scope
The commercial names of the entities included in consolidation and the locations
of the head offices of these institutions are:
Commercial Name
Head Office Consolidation Method
Şekerbank (Kıbrıs) Ltd.
Nicosia/TRNC
full consolidation
Istanbul/Turkey
full consolidation
Nicosia / TRNC
full consolidation
Istanbul/Turkey
full consolidation
Istanbul/Turkey
full consolidation
Istanbul/Turkey
full consolidation
Zahlungsdienste GmbH
der Şekerbank T.A.Ş.
Cologne/Germany
full consolidation
When there are differences between the accounting policies of the subsidiaries
and the Parent Bank, the financial statements are adjusted in accordance with the
principle of materiality. The financial statements of the subsidiaries are prepared
as of 31 December 2015.
The transactions and balances between the consolidated financial subsidiaries and
the Parent Bank are eliminated.
III. Explanations on Usage Strategy of Financial Assets and Foreign Currency
Transactions
The Parent Bank aims to keep up its activities in every line of banking.
The Parent Bank shapes its strategies for financial instruments depending on the
source of funds, which mainly consists of deposits. Investment instruments are
selected among liquid instruments. A level of liquidity which allows for covering
obligations is kept.
The Group controls risk by managing positions in harmony with market
movements on the strength of short-term strategies instead of carrying longterm currency positions in big amounts, in order to avoid risks which might
arise from floating currency (exchange rate) regime. A currency risk arising
from customer transactions, the Group tries to close by carrying out countertransactions.
Yield (return) and risk analyses are made in regard of maturity structure of balance
sheet items, re-pricing periods and interest rates, and appropriate investment
decisions are made. Budget contains limits on maturity basis and distributions of
assets items are defined.
The Group Off-balance sheet derivative transactions are managed by including
such transactions in the total currency and interest positions. Derivative
transactions to be made by customers are carried out within credit risk limits
established on customer basis. Currency swaps, in particular, being a larger part of
the off-balance sheet transactions, are carried out to manage the currency cash
flow without causing currency and interest risks.
179
ŞEKERBANK T.A.Ş.
The Parent Bank aims to get longer-term funds (resources) in order to be able
to hedge itself against risks arising from short-term character of deposits, while
trying to increase the share of floating interest rate items in its assets.
IV. Explanations on Foreign Currency Transactions
VI. Interest Income and Expenses
The interest income and expenses are accounted by accrual basis of accounting
using the effective interest rate (the ratio that equalizes the future cash flow of
financial assets and liabilities to the current net book value).
Gains or loss arising from foreign currency transactions are reflected to the
income statement as they are realized during the year. Foreign currency assets
and liabilities at each period-end are translated into Turkish lira at the period-end
foreign exchange buying rates announced by the Parent Bank and the resulting
foreign exchange gains or losses are recorded in the income statement as foreign
exchange gain or loss. The Parent Bank translates its foreign currency transactions
with the Parent Bank’s exchange rates and subsidiaries of the Parent Bank
translate their foreign currency transactions with the Central Bank’s exchange
rates.
According to the related legislation, interest accruals and discounts on loans and
other receivables which become doubtful are cancelled and such amounts are
recorded as interest income when they are collected.
There are no capitalized foreign exchange differences.
Fees and commissions for funds borrowed paid to other financial institutions, as
part of the transaction costs, are recorded as prepaid expenses and using the
effective interest rate expensed within the related periods.
The information regarding the principles of foreign currency risk management is
stated in the Section Four, Note V.
Foreign exchange gains and losses arising from translating monetary financial
assets are reflected to “Foreign Exchange Gains / Losses” in the income statement.
The foreign currency net investment in consolidated foreign subsidiaries are
translated into Turkish Lira using the Parent Bank’s exchange rate prevailing at
the balance sheet date for their assets and liabilities and twelve months average
exchange rate for their income statement items. The currency translation cost
derived from the consolidated subsidiaries’ currency translation differences
amounting to TRL 3,649 Thousand (31 December 2014 - TRL 1,061 Thousand) has
been recorded in “Other Profit Reserves” under shareholders’ equity.
V. Explanations on Forward and Option Contracts and Derivative Instruments
The Group’s derivative instruments consist of foreign currency swaps, interest
swaps, option and forward foreign currency buy/sell transactions. Fair values of
foreign currency forward and swap transactions are determined by comparing
the period end foreign exchange rates and current market foreign exchange rates
to the balance sheet date. The resulting gain or loss is reflected in the income
statement. In calculation of fair values of the interest swap contracts, interest
amounts to be paid or received upon the fixed interest rate in the contract and
interest amounts to be received or paid upon the floating interest rates in the
term income statement. Discounted values calculated using the interest rates
between the transaction date and repricing date are used in determination of the
fair values of interest rate swaps. Some of the derivative instruments, although
made for economical hedging purposes, are accounted as trading transactions
since they are not qualified to be a hedging instrument as per “Financial
Instruments: Recognition and Measurement” (“TAS 39”). Realized gains or losses
are reflected in the statement of income on these derivative instruments.
VII. Fees and Commission Income and Expenses
Fees for various banking services are recorded as income when collected and
prepaid commission income on cash loans using the effective interest rate
rediscount method and then recorded as income in the related period.
The dividend income is reflected in the financial statements on a cash basis when
the profit distribution is realized by the associates and subsidiaries.
VIII. Explanations on Financial Assets
Financial instruments comprise financial assets, financial liabilities and derivative
instruments. Financial instruments form a significant part of the Group’s
operations. Financial instruments affect liquidity, market, and credit risks on the
Group’s balance sheet in all respects. The Group trades these instruments on
behalf of its customers and on its own behalf.
Financial instruments expose, affect credit and interest risks and diminish the
liquidity in the financial statements. All regular way purchases and sales of
financial assets are recognized on the settlement date i.e. the date that the asset is
delivered to or by the Group. Settlement date accounting requires (a) accounting
of the asset when acquired by the institution and (b) disposing of the asset out of
the balance sheet on the date settled by the institution; and accounting of gain
or loss upon disposal. In case of application of settlement date accounting, for
the financial assets at fair value through profit and loss, available for sale financial
assets and securities held for trading, the Group accounts for the changes that
occur in the fair value of the asset in the period between trade transaction date
and settlement date.
Regular way purchases or sales are purchases or sales of financial assets
that require delivery of assets within the time frame generally established by
regulation or convention in the market place. Changes in fair value of assets to
be received during the period between the trade date and the settlement date
are accounted for in the same way as the acquired assets. Fair value differences
are not accounted for assets presented at cost or amortized cost; gain or loss of
financial assets at fair value through profit and loss are reflected in the statement
of income; gain or loss of available for sale assets are accounted for in the
shareholders’ equity.
180
ŞEKERBANK T.A.Ş.
The financial instruments are mentioned below with regard to their accounts
classified in the financial statements and their valuations according to these
classifications.
Cash, Banks and Other Financial Institutions
Cash and cash equivalents comprise cash on hand, demand deposits, and highly
liquid short-term investments with maturity of 3 months or less following the
purchase date, not bearing risk of significant value change, and these investments
that are readily convertible to a known amount of cash. The book values of these
assets approximate their fair values.
Trading securities are securities which were either acquired to generate a profit
from short-term fluctuations in price or dealer’s margin, or they are the securities
included in a portfolio with a pattern of short-term profit taking.
Trading securities are initially recognized at cost. Transaction costs of the related
securities are included in the initial cost. The positive difference between the
cost and fair value of such securities is accounted for as interest and income
accrual, and the negative difference is accounted for as “Impairment Provision on
Marketable Securities”.
In addition to customer deposits, the Parent Bank is funding its growing long term
and fixed interest rate TRL loan portfolio through long term floating interest rate
foreign currency resources provided from international markets. The Parent Bank
transforms the foreign currency liquidity which is created by funds provided from
international markets to TRL liquidity through long term swap contracts, as a result
of this situation the Parent Bank can both provide TRL funds for the long term fixed
rate loans and provide protection against interest rate risk.
The Group reflects swaps, used for funding long term and fixed interest rate TRL
loan portfolio, with fair value in the financial statements. The Group has initially
classified these long term and fixed interest rate TRL loan portfolio funded through
swaps as “financial assets at fair value through profit and loss” and follows them at
fair value in the financial statements.
TRL 382,730 Thousand of the housing, commercial installment, consumer, vehicle
and finance lendings’ principal amounts are classified as under the account of
financial asset at fair value through profit and loss (31 December 2014 - TRL 348,713
Thousand).
Held to Maturity Investments, Financial Assets Available for Sale and Loans
Investments held to maturity include securities with fixed or determinable
payments and fixed maturity where there is an intention of holding till maturity
and the relevant conditions for fulfillment of such intention, including the funding
ability and excluding loans and receivables.
Available for sale financial assets include all securities other than loans and
receivables, securities held to maturity and securities held for trading.
The securities are initially recognized at cost including the transaction costs.
After the initial recognition, available-for-sale securities are measured at fair
value and the unrealized gain/loss originating from the difference between the
amortized cost and the fair value is recorded in “Marketable Securities Value
Increase Fund” under the equity. Fair values of debt securities that are traded in an
active market are determined based on quoted prices or current market prices.
In the absence of prices formed in an active market, fair values of these securities
are determined using the Official Gazette prices or other valuation methods stated
in TAS. In case there is no market price in an active market, the other methods
explained in TAS No: 39 are used for determination of the fair value.
The real coupon rates for government bonds indexed to consumer price index are
fixed throughout maturities. As per the statements made by the Turkish Treasury
on the dates of issuance, such securities are valued taking into account the
difference between the reference index at the issue date and the reference index
at the balance sheet date to reflect the effects of inflation.
Loans and receivables are financial assets raised by the Group providing money to
debtors, other than assets held for trading purposes or for the purpose of selling in
the short-term.
After initial recognition held to maturity investments are measured at amortized
cost by using effective interest rate less impairment losses, if any.
The interests received from held-to-maturity investments are recorded as interest
income.
There are no financial assets that have been previously classified as held-tomaturity investments but cannot be currently classified as held-to-maturity for
two years due to “tainting” rules.
The Group classifies its securities as referred to above at the acquisition date of
related assets.
Shares unquoted on the stock exchange amounting to TRL 7,396 Thousand are
classified under “Other Marketable Securities” of Financial Assets Available for Sale
of the Parent Bank in the current period (31 December 2014 - TRL 6,884 Thousand).
Loans and Provisions for Impairment
Loans and receivables are initially recognized at cost according to their original
balances, after the initial recognition, they are accounted at amortized cost by
using effective interest rate as stated in the TAS No: 39.
Foreign currency-indexed individual and commercial loans are shown under
Turkish Currency (“TRL”) accounts after having been converted into Turkish Lira at
exchange rate at transaction date. Repayments are calculated at exchange rate at
date of payment and exchange rate differences encountered are reflected in profit
and loss accounts. Net foreign exchange gains of the foreign currency indexed
loans are presented under foreign exchange gain/loss.
period income statement. The provisioning amount for non-performing loans are
determined by the Parent Bank’s management for compensating the probable
losses of the doubtful loan portfolio, by evaluating the quality of loan portfolio,
risk factors and considering the economy conditions, other facts and related
regulations.
181
ŞEKERBANK T.A.Ş.
The Parent Bank Management applies provision policy for the “non-performing
loans” in accordance with the requirements of the Turkish banking regulation
adopted by the BRSA.
Impairment Expenses - Specific Provision Expense". The collections made
are reversed from the “Provision for Loans and Other Receivables” account in the
income statement.
The collections related to loans written off or provisioned in prior years are
recorded to “Collections Related to the Prior Period Expenses” under “Other
Operating Income” account and related interest income is credited to the “Interest
Received from Non-performing Loans” account.
Within the framework of the regulation and principles referred to in explanations
above, in addition to specific loan loss provisions; the Parent Bank records
general loan loss provisions for loans and other receivables. The Parent Bank, as
a consequence of the regulation published in the Official Gazette No. 27119 dated
23 January 2009 amending the “Regulation of Methods and Principles for the
Determination of Loans and Other Receivables to be Reserved for and Allocation
of Reserves”, payment obligation arising from the Law No. 3167, “Arrangements of
the Payments Made Through Cheque and Protection of the Cheque Holders” and
other related regulations, applies one fourth of the related provision group rate for
each leaf of the cheques given to loan customers whose loans are in third, fourth
or fifth groups, and for those cheques which were delivered at least five years
before the reporting period.
Subsequent to the change in the regulation on “Change in the Methods and
Principles for the Determination of Loans and Other Receivables to be Reserved
for and Allocation of Reserves” published in the Official Gazette No. 27947 dated 28
May 2011; the banks can change the conditions of the payment plan of the loans
which are followed under standard loans and receivables. However, if the original
payment plan is changed, the general loan loss provision ratio for standard and for
the loans and receivables under close monitoring should be 5 %.
In accordance with the communiqué “The Change in the Determining the Nature
of Loans and Receivables and Principles and Procedures on the Allocation of
Loan and Receivable Provisions” published on 21 September 2012 No: 28418 of
the Official Gazette, as of the latest month-end prior the effective date of the
Communiqué, the Bank should provide provision amounted with the rates stated
in the first paragraph of the Article 7 of the Communiqué, 40 % until 31 December
2012, 60% until 31 December 2013, 80% until 31 December 2014 and 100%
until 31 December 2015, in general allowances for cash loans, close monitoring
loans, letters of guarantees, sureties and other non-cash loans. The Parent Bank
has reflected 100% of the occurred difference in 31 December 2012 financial
statements.
As a consequence of the regulation published in the Official Gazette No. 28789
dated 8 October 2013 amending the “Change in the Methods and Principles for the
Reserves” in case consumer loans other than mortgage loans exceed 25 % of total
loans and non performing consumer loans other than mortgage loans exceeds 8
% of total consumer loans other than mortgage loans, general loan loss provision
ratio is 4 % during maturity of consumer loans which are followed under standard
loans and receivables except for mortgage loans; for the loans under close
monitoring except for mortgage loans, the general loan provision ratio is 8 %. Also
for export cash and non-cash loans followed under standard loans general loan
provision ratio is 0 % and for SME cash loans general loan provision ratio is 0.5 %
and for non-cash SME loans ratio is 0.1 %.
IX. Explanations on Impairment of Financial Assets
At each reporting date, the Group evaluates the carrying amounts of its financial
asset or a group of financial assets to determine whether there is an objective
indication that those assets have suffered an impairment loss. If any such
indication exists, the Group determines the related impairment.
A financial asset or a financial asset group incurs impairment loss only if there is
an objective indicator related to the occurrence (or non-occurrence) of one or
more than one event (“loss event”) after the recognition of that asset; and such
loss event (or events) causes, an impairment as a result of the effect on the reliable
estimate of the expected future cash flows of the related financial asset and asset
group. Irrespective of high probability, the expected losses caused by the future
events are not recorded.
X. Offsetting of Financial Assets and Liabilities
Financial assets and liabilities are offset when the Group has a legally enforceable
right to set off, and the intention of collecting or paying the net amount of related
assets and liabilities or the right to offset the assets and liabilities simultaneously.
XI. Explanations on Sales and Repurchase Agreements and Lending of Securities
The sales and purchase of government securities under repurchase agreements
made with the customers are being recorded in balance sheet accounts in
accordance with the Uniform Chart of Accounts. Accordingly in the financial
statements, the government bonds and treasury bills sold to customers under
repurchase agreements are classified under securities held for trading, available
for sale and held to maturity depending on the portfolio they are originally included
in and are valued according to the valuation principles of the related portfolios.
Funds obtained from repurchase agreements are classified as a separate subaccount under money market borrowings account in the liabilities.
These transactions are short-term and consist of domestic public sector debt
securities.
The income and expenses from these transactions are reflected in the “Interest
Income on Marketable Securities” and “Interest Expense on Money Market
Borrowings” accounts in the income statement.
As of 31 December 2015 the Group has TRL 7,000 Thousand reverse repo
transactions (31 December 2014 – TRL 8,000 Thousand).
As of 31 December 2015 the Group does not have marketable securities lending
transactions (31 December 2014 - None).
182
ŞEKERBANK T.A.Ş.
XII. Explanations on Assets Held for Sale and Discontinued Operations
Assets held for sale are those assets or group of assets, which will be disposed
under a plan prepared by the management regarding the sale of those asset
or the group of assets together with an active program for determination of
buyers and plan completion date. Those assets (or else the group of assets) are
marketed in conformity with its fair value. On the other hand, the sale is expected
to be recorded at the completed sale within one year after the classification
date; and the necessary transactions and procedures to complete the plan
should demonstrate the fact that the possibility of making significant changes or
cancelling the plan is low.
and cost as of 31 December 2015 is TRL 305,209 Thousand gross (after net off
deferred tax, net amount is TRL 245,545 Thousand) (31 December 2014 gross - TRL
253,826 Thousand, net-off deferred tax amount TRL 203,724 Thousand).
Other tangible fixed assets were accounted at their restated costs in line with
inflation accounting until 31 December 2004; afterwards the acquisition cost
and any other cost incurred to prepare the fixed asset for usage are reflected
less reserve for impairment, if any, and depreciated on a straight-line method.
Depreciation of assets held less than one year as of the balance sheet date is
accounted for proportionately. There is no change in amortization method in
current period and the annual rates used, which approximate rates based on the
estimated economic useful lives of the related assets, are as follows:
As of 31 December 2015, the Group has TRL 135,187 Thousand assets held for sale
(31 December 2014 - TRL 672 Thousand).
A discontinued operation is a division of a Group that is either disposed or held
for sale. Results of discontinued operations are included in the income statement
separately. The Group does not have any discontinued operations.
There is no goodwill regarding the investments in associates and subsidiaries.
Intangible assets are accounted for at restated cost until 31 December 2004 in
accordance with inflation accounting and are amortized with straight-line method.
After 31 December 2004 the cost of assets subject to amortization is restated as
the acquisition cost and any other costs incurred in order to make the intangible
asset ready for use less reserve for impairment, if any, are amortized on a
straight-line method. The cost of assets subject to amortization is restated after
deducting the exchange differences, capitalized financial expenses and revaluation
increases, if any, from the cost of the assets.
Those items classified as intangible assets mainly consist of software. As being
different from determination of other intangible assets’ amortization periods,
these items are determined to have 5 years of amortization. Software is mainly
outsourced and the related expenses are not capitalized.
There are no anticipated changes in the accounting estimates about the
amortization rate and method and residual values that would have a significant
impact in the current and future periods.
The Group has no written-off intangible fixed assets, in the current period (31
December 2014 - None).
Costs of the Parent Bank’s immovables have been adjusted for inflation until 31
December 2004. As of 31 December 2006, the Parent Bank changed its accounting
policy and adopted revaluation method on annual basis under scope of Standard
on Tangible Fixed Assets (TAS 16) with respect to valuation of immovables
included in its tangible fixed assets. Tangible Fixed Assets’ appraisal valuation was
conducted by an independent valuation company as at 31 December 2015 reflected
in the financial statements, accordingly. The difference between expertise value
%
Buildings
2
Motor vehicles
20
Furniture, fixtures and office equipment and others
Leasehold improvements
2 – 33
During Leasehold
Gain or loss resulting from disposals of the tangible fixed assets is reflected to the
income statement as the difference between the net proceeds and net book value.
Maintenance costs of tangible fixed assets are capitalized if they extend the
economic useful life of related assets. Other maintenance costs are expensed.
There are no pledges, mortgages or other restrictions on the tangible fixed assets.
There is no purchase commitments related to the tangible fixed assets.
The Group reviews the residual value and the useful life of buildings at least at each
financial year-end and, if expectations differ from previous estimates, the changes
accounted for as a change in an accounting estimate in accordance with TAS 8
Accounting Policies, Changes in Accounting Estimates and Errors.
The Group has TRL 1,751 Thousand written-off fixed assets in the current period (31
December 2014 - TRL 47 Thousand).
Tangible fixed assets acquired by financial leases are accounted for in accordance
with TAS No: 17 “Leases”. In accordance with this standard, the leasing
transactions, which consist of foreign currency liabilities, are translated to Turkish
Lira with the exchange rates prevailing at the transaction dates and they are
recorded as an asset or a liability. The foreign currency liabilities are translated
to Turkish Lira with the Parent Bank’s period end exchange rates. The increases/
decreases resulting from the differences in the foreign exchange rates are
recorded as expense/income in the relevant period. The financing cost resulting
from leasing is distributed through the lease period to form a fixed interest rate.
In addition to the interest expense, the Group records depreciation expense for the
depreciable leased assets in each period. The depreciation rate is determined in
accordance with TAS No: 16 “Accounting Standard for Tangible Fixed Assets” and
the depreciation rate of these assets is 20 %.
183
ŞEKERBANK T.A.Ş.
Operating lease payments are recognized as expenses in the income statement on
a straight line basis over the lease term.
The gross lease receivables including interest and principal amounts regarding
the Group’s financial leasing activities conducted by Şeker Finansal Kiralama A.Ş.
as “Lessor” are stated under the receivables from the financial leasing activities.
The difference between the total of rent payments and the cost of the related
fixed assets are reflected to the “unearned income” account. The interest income
is calculated and recorded to create a constant rate of return over the lessor’s net
investment on the leased item.
Provisions are recognized when there is a present obligation, it is probable that an
outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are determined by using the Group’s best expectation of expenses in
fulfilling the obligation, and discounted to present value if material.
Defined Benefit Plans
In accordance with existing social legislation in Turkey, the Group is required to
make lump-sum termination indemnities over a 30 day salary for each employee
who has completed over one year of service, whose employment is terminated
due to retirement or for reasons other than resignation or misconduct. The Group
is also required to make a payment for the period of notice calculated over each
service year of the employee whose employment is terminated for reasons other
than resignation or misconduct. Total benefit is calculated in accordance with TAS
No: 19 “Turkish Accounting Standard on Employee Benefits”.
Such benefit plans are unfunded since there is no funding requirement in Turkey.
The cost of providing benefits to the employees for the services rendered by them
under the defined benefit plan is determined by independent actuaries annually
using the projected unit credit method.
In calculating the related liability to be recorded in the financial statements for
these defined benefit plans, the Group uses independent actuaries and also makes
assumptions and estimation relating to the discount rate to be used, turnover of
employees, future change in salaries/limits, etc. These estimations are reviewed
annually.
According to revised TAS 19 effective from 1 January 2013, actuarial gain/losses are
recorded under equity. As of 31 December 2015, the carrying value of employee
benefit provisions is TRL 61,401 Thousand that consists of employee termination
benefit provisions amounting to TRL 57,087 Thousand and employee vacation pay
provisions amounting to TRL 4,314 Thousand (31 December 2014 - total employee
benefit provision was TRL 64,310 Thousand, employee termination benefit
provisions was TRL 61,319 Thousand and employee vacation pay provisions was TRL
2,991 Thousand).
Defined Contribution Plans
Şekerbank T.A.Ş. Pension Fund, of which most of the Parant Bank’s employees
are members, is established in accordance with the provisional Article 20 of the
Social Security Act No: 506. As per the provisional article No: 23 of the Banking Law
No: 5411, the Bank pension funds, which were established within the framework
of Social Security Institution Law, should be transferred to the Social Security
Institution within 3 years after the issuance of the related law. Methods and
principles related to the transfer have been determined as per the Cabinet decision
no: 2006/11345 made on 30 November 2006. However, the related article of the
act has been cancelled upon the President’s application filed on 2 November 2005
by the Supreme Court’s order no: E.2005/39, K.2007/33 issued on 22 March 2007,
which was published in the Official Gazette No: 26479 on 31 March 2007 and the
After the justified decree related to cancelling the provisional article 23 of the
Banking Law was announced by the Constitutional Court on the Official Gazette
dated 15 December 2007 and numbered 26731, Turkish Grand National Assembly
started to work on establishing new legal regulations, and after it was approved
at the General Assembly of the TGNA, the Law numbered 5754 “Emendating Social
Security and General Health Insurance Act and Certain Laws and Decree Laws”,
which was published on the Official Gazette dated 8 May 2008 and numbered
26870, came into effect. The new law decrees that the contributors of the Bank
pension funds, the ones who receive salaries or income from these funds and
their rightful beneficiaries will be transferred to the Social Security Institution
and will be subject to this Law within 3 years after the release date of the related
article, without any need for further operation. The threeyear transfer period
can be prolonged for maximum 2 years by the Cabinet decision. However related
transfer period has been prolonged for 2 years by the Cabinet decision dated 14
March 2011, which was published on the Official Gazette dated 9 April 2011 and
numbered 27900. In addition, by the Law “Emendating Social Security and General
Health Insurance Act”, which was published on the Official Gazette dated 8 March
2012 and numbered 28227, this period of 2 years has been raised to 4 years after
that related transfer period has been prolonged for one more year by the Cabinet
decision dated 08 April 2013, which was published on the Official Gazette dated 3
May 2013 and numbered 28636 also this period has revalidated one more year by
the Cabinet decision dated 24 February 2014, which was published on the Official
Gazette dated 30 April 2014 and numbered 28987. The Council of Ministers has
184
ŞEKERBANK T.A.Ş.
•
•
actuarial surplus).
statements of the Group (31 December 2014 - None).
Corporate tax
According to the Article 32 of the Corporate Tax Law No. 5520, accepted in the
meeting of the Turkish Grand National Assembly of Turkey on 13 June 2006 and
announced in the Official Gazette dated 21 June 2006, the corporate tax rate has
been decreased from 30 % to 20 %, effective from 1 January 2006 as per the
Article 37 of the Corporate Tax Law.
The tax legislation, requires advance tax payment of 20 % to be calculated and
paid based on earnings generated for each quarter. The amounts thus calculated
and paid are offset against the final tax liability for the year (31 December 2014 - 20
%).
Annual tax returns are required to be filed between the first and twenty fifth day of
the fourth month following the balance sheet date and paid in one installment until
the end of the related month.
Tax provision related with items that are credited or charged directly to equity are
charged or credited to equity.
According to the Corporate Tax Law, tax losses can be carried forward for a
maximum period of five years following the year in which the losses are incurred.
Tax authorities can inspect tax returns and the related accounting records for a
retrospective maximum period of five years.
Deferred Tax Liability / Asset
The Group calculates and reflects deferred tax asset or liability on timing
differences which will result in taxable or deductible amounts in determining
taxable profit of future periods. As of 31 December 2015, in accordance with
TAS No: 12 “Turkish Accounting Standard on Income Taxes” and the changes in
the circular of the BRSA numbered BDDK.DZM.2/13/1-a-3 dated 8 December
2004, the Parent Bank calculated deferred tax asset on all deductible temporary
differences except for general loan reserves, if sufficient taxable profit in future
periods to recover such amounts is probable; as well as deferred tax liability on all
taxable temporary differences. Deferred tax assets and liabilities are shown in the
accompanying financial statements on a net basis.
The net deferred tax asset is included in deferred tax asset and the net deferred
tax liability is reflected under deferred tax liability on the balance sheet. The
deferred tax benefit of TRL 19,818 Thousand is stated under the tax provision line
in the income statement (31 December 2014 – TRL 15,865 Thousand deferred tax
expense). The deferred tax expense of TRL 42,619 Thousand (31 December 2014
– TRL 47,258 Thousand deferred tax expense) resulting from differences related
to items that are debited or charged directly to equity is netted with the related
equity accounts.
Furthermore, as per the above circular of the BRSA, deferred tax benefit balance
resulting from netting of deferred tax assets and liabilities should not be used in
dividend distribution and capital increase.
The borrowing costs related to purchase, production, or construction of qualifying
assets that require significant time to be prepared for use and sale are included in
the cost of assets until the relevant assets become ready to be used or to be sold.
Financial investment income obtained by temporary placement of undisbursed
investment loan in financial investments is offset against borrowing costs qualified
for capitalization.
185
ŞEKERBANK T.A.Ş.
All other borrowing costs are recorded to the income statement in the period they
are incurred.
As of 31 December 2015 outstanding issued bonds amount of the Group is TRL
507,307 Thousand (31 December 2014 – TRL 401,196 Thousand).
Issuer
Issuance Date
Issuance Amount
Maturity
Şekerbank T.AŞ.
16.10.2015
95,000
179 days
Şekerbank T.AŞ.
17.09.2015
178,000
179 days
Şekerbank T.AŞ.
11.08.2015
178,000
175 days
02.06.2015
46,742
10 months
Şeker Finansal Kiralama A.Ş
22.12.2015
35,000
10 months
As of 31 December 2015 outstanding issued marketable securities amount of the
Group is TRL 39,054 Thousand and details are shown the in table below
(31 December 2014 – TRL 75,089 Thousand).
Issuer
Issuance Date
Issuance Amount
Maturity
17.06.2014
11,710
24 months
11.11.2014
14,700
24 months
02.06.2015
6,258
24 months
22.12.2015
8,000
24 months
The Parent Bank issued Asset Covered Bond amounting to TRL 1,500,000
Thousand and details are shown in the table below. The investors are International
security the Parent Bank’s SME loans were used.
Outstanding
Amount (*) Currency
Issue Date
Series
Investors
Amount
14 September 2011
2011-2
FMO
61,250
61,250
Maturity
TL
12.09.2016
12.09.2016
14 September 2011
2011-3
IFC
44,750
17,900
TL
9 December 2011
2011-4
EIB
120,000
-
TL
12.01.2015
9 December 2011
2011-5
EBRD
60,000
-
TL
12.01.2015
28 November 2013
2013-1
KfW/EIF
135,975
-
TL
12.12.2014
27 February 2014
Qualified
Institutional
2014-1
Investors
361,846
361,846
TL
13.03.2017
18 December 2015
2015-1
319,400
319,400
TL
12.03.2019
(*)
EIB
The issuance dated 27 February 2014, amounting to TRL 361,846 Thousand and
the issuance dated 28 November 2013 amounting to TRL 135,975 Thousand were
made via SKB VTMK International Issuer Ltd (SPV) and there is no shareholding
relationship between the Parent Bank and SKB VTMK International Issuer Ltd. SPV
is managed and controlled by another independent firm and does not have any
administrative or contractual management relationship with the Parent Bank. The
Parent Bank has no control power over SPV. SPV is the investor of some of asset
covered bonds issued by the Parent Bank and also SPV issues bonds itself. In case
of default of SPV’s issued bonds, the Parent Bank has no liability. The Parent Bank is
responsible for running costs of SPV.
As of 31 December 2015 amount of Asset Covered Bond issued is TRL 764,218
The Group has not issued convertible bonds.
The Parent Bank’s paid-in capital has been increased to TRL 1,158,000 Thousand
by contribution in kind in the amount TRL 25,000 Thousand, which composed
of TRL 16,475 Thousand from extraordinary reserves, TRL 4,262 Thousand from
subsidiaries and real estate sale profit, TRL 4,263 Thousand from share premium
and by cash in the amount of TRL 45,813 Thousand in the reporting period.
Acceptances are realized simultaneously with the payment dates of the customers
and they are presented as probable commitments in off-balance sheet accounts.
The Parent Bank’s subsidiary Şeker Finansal Kiralama A.Ş. has TRL 54,107 Thousand
of unused investment incentives as of 31 December 2015 (31 December 2014 – TRL
67,301 Thousand).
186
ŞEKERBANK T.A.Ş.
The Group primarily deals with and engages in corporate, retail and SME banking
in line with its strategy.
Current Period
Net Interest Income
Net Fees and Commission
Income and Other
Operating Income
Dividend Income
Impairment provision for
loans and other receivables
Taxation
Corporate
569,265
SME
950,701
Retail
(288,029)
Other
(101,919)
Total
1,130,018
121,705
1,757
16,160
164,394
-
42,109
(178)
220,923
(246,505)
549,131
1,757
(230,523)
(95,584)
(32,127)
(131,265)
-
(44,676)
(3,100)
(182,949)
(880,489)
(454,474)
(915,716)
581,176
-
983,830
-
(293,874) (1,190,939)
-
80,193
17,459
-
-
-
-
97,652
Corporate
454,596
SME
890,065
Retail
(213,862)
Other
(58,575)
Total
1,072,224
136,879
1,269
10,224
138,718
-
54,671
-
127,143
(59,043)
457,411
1,269
(48,819)
(60,047)
(31,206)
(106,652)
-
(32,612)
335
(116,504)
(828,557)
(315,815)
(859,428)
511,715
-
922,131
-
(191,468)
-
(935,536)
-
306,842
(59,165)
-
-
-
-
247,677
Prior Period
Net Interest Income
Net Fees and Commission
Income and Other
Operating Income
Dividend Income
Impairment provision for
loans and other receivables
(-)
Taxation
Current
Period
Assets
Liabilities
Prior
Period
Assets
Liabilities
SME
6,261,452
1,212,826
Treasury/
Retail Investment
2,175,582
5,934,872
8,948,343
7,163,472
Commercial
SME
6,664,963 6,827,085
4,903,442 1,276,049
Treasury/
Retail Investment
2,254,014 4,905,089
7,440,044
5,146,518
Commercial
9,512,347
4,732,375
None.
Undistributed
Total
1,794,501 25,678,754
3,621,738 25,678,754
Undistributed
1,621,574
3,506,672
Total
22,272,725
22,272,725
SECTION FOUR
INFORMATION ON FINANCIAL STRUCTURE
I. Explanations Related to the Consolidated Capital Adequacy Standard Ratio
The method used for risk measurement in determining capital adequacy
standard ratio; capital adequacy standard ratio is calculated in accordance with
the Communiqué on “Measurement and Assessment of Capital Adequacy of
Banks”, which was published on 28 June 2012 in the Official Gazette numbered
28337 and effective since 1 July 2012 and Communiqué on “Banks’ Equity” which
was published on 5 September 2013 and in the Official Gazette numbered 28756
effective since 1 January 2014. In the current period, consolidated capital adequacy
standard ratio is calculated in accordance with the Communiqué which is
effective since 1 January 2014. The Group’s consolidated capital adequacy ratio in
accordance with the related communiqué is 13.06 % (31 December 2014 - 14.11 %).
In the computation of capital adequacy standard ratio, data prepared in
accordance with statutory accounting requirements are used. Additionally, the
market risk exposure as well as the operational risk exposure are calculated in
accordance with the communiqué on the Communiqué on “Measurement and
Assessment of Capital Adequacy of Banks” and is taken into consideration in the
capital adequacy standard ratio calculation.
The values deducted from the capital base in the shareholders’ equity computation
are excluded while calculating risk-weighted assets, non-cash loans and
contingent liabilities. Assets subject to depreciation and impairment among riskweighted assets are included in the calculations over their net book values after
deducting the relative depreciations and provisions.
In the calculation process of credit risk, risk types are classified based on
“Measurement and Assessment of Capital Adequacy of Banks-Appendix 1” and
financial collaterals taken into account according to the credit risk mitigation
techniques communiqué and classified in the related risk weight. While
simple approach is taken into account for banking book items, the Bank uses
comprehensive approach for trading book items in the credit mitigation process.
While calculating the basis of non-cash loans subject to credit risk, the net
receivable amount from the counter parties net of provision amount set
in accordance with the “Communiqué on Methods and Principles for the
Reserves” is multiplied by the loan conversion rates presented in the Article 5 and
related clauses of the Communiqué on “Measurement and Assessment of Capital
Adequacy of Banks”, and calculated by applying the risk weights presented in the
Capital Adequacy Analysis Form.
In the calculation of counterparty credit risk, the current exposure method is
used according to the Communiqué on “Measurement and Assessment of Capital
Adequacy of Banks” the Article 21 and Appendix 2.
187
ŞEKERBANK T.A.Ş.
Consolidated
The Parent Bank
Risk Weight
0%
10%
5,625,793
-
20% 35%
Risk Weight
50%
75%
100%
150%
200%
250%
0%
10%
20% 35%
50%
75%
100%
150%
200%
250%
The Amount Subject to Credit Risk
Risk Types
Contingent and Non-Contingent Claims on Regional Governments and
Local Authorities
-
Contingent and Non-Contingent Claims on Administrative Units and
Non-commercial Enterprises
-
-
-
-
84,179
-
-
- 5,613,395
-
-
-
-
-
29,598
-
-
-
- 74,025
-
-
-
2,288
-
-
-
-
- 74,025
-
-
-
-
-
-
-
641
-
-
-
-
-
7,402
-
-
-
641
-
-
-
-
-
7,402
-
-
Contingent and Non-Contingent Claims on Multilateral Development
Banks
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 64,248
-
48,201
-
147,657
-
-
-
-
-
48,421
-
48,201
-
147,657
-
-
-
-
-
-
- 8,884,506
-
-
-
97,490
-
2,507
-
-
- 8,211,213
-
-
-
- 5,497,071
- 5,497,071
Contingent and Non-Contingent Claims on Banks and Capital Market
Intermediary
-
97,490
2,507
Contingent and Non-Contingent Claims Included in the Regulatory Retail
Portfolios
63,442
-
-
-
-
-
-
- 5,440,347
70,546
-
-
-
63,442
-
-
-
-
57,153
-
-
-
-
-
-
- 5,018,372
293,536
-
-
-
-
-
-
-
- 548,909 600,448
2
-
-
-
-
Past Due Loans
-
-
-
-
-
-
-
-
-
-
-
-
66,968
-
-
-
-
4,097
-
-
-
-
-
293,014
-
-
-
-
-
- 491,013 567,698
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
173,701
-
4
-
-
-
1,569,196
-
-
-
173,701
-
4
-
-
- 1,531,841
-
-
-
Other Claims
Summary information related to the capital adequacy ratio:
Consolidated
The Parent Bank
Consolidated
The Parent Bank
Current Period
Current Period
Prior Period
Prior Period
1,602,877
1,507,583
1,441,845
1,362,581
Required Capital Liabilities for Market Risk (RCLMR)
35,868
31,251
47,057
35,980
Required Capital Liabilities for Operational (RCLOR) (*)
166,324
154,136
146,719
136,233
Required Capital Liabilities for Credit Risk (Main Amount related with Credit Risk*0.08) (RCLCR)
2,946,460
2,890,626
2,884,597
2,800,841
Shareholders’ Equity/((RCLCR+RCLMR+RCLOR) *12.5*100)
13.06
13.66
14.11
14.60
Core Capital/((RCLCR+RCLMR+RCLOR) *12.5*100)
10.86
11.32
11.48
11.80
Tier I Capital/((RCLCR+RCLMR+RCLOR) *12.5*100)
11.16
11.59
11.82
12.22
(*)
Calculated based on basic indicator approach.
188
ŞEKERBANK T.A.Ş.
Current
Period
Prior
Period
TIER 1 CAPITAL
Paid-in Capital to be Entitled for Compensation after All Creditors
1,158,000 1,087,187
Share Premium
1,834
4,815
Share Cancellation Profits
Legal Reserves
1,123,135
904,055
Other Comprehensive Income according to TAS
247,312
207,986
Profit
110,179
243,565
Net Current Period Profit
95,544
243,075
Prior Period Profit
14,635
490
Provisions for Possible Losses
Bonus Shares from Associates, Subsidiaries and Joint-Ventures not Accounted in Current Period’s
Profit
Minority Shares
25,913
21,242
Tier I Capital Before Deductions
2,666,373 2,468,850
Deductions From Tier I Capital
Current and Prior Periods' Losses not Covered by Reserves, and Losses Accounted under Equity
according to TAS (-)
70,366
11,757
Leasehold Improvements on Operational Leases (-)
34,300
22,435
Goodwill and Intangible Assets and Related Deferred Tax Liabilities (-)
39,957
14,817
Net Deferred tax assets / liabilities (-)
4,359
2,712
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 Unconsolidated Banks and Financial
Institutions where the Bank does not own 10% or less of the Issued Share Capital Exceeding the 10%
Institutions where the Bank owns 10% or less of the Issued Share Capital Exceeding the 10%
Mortgage Servicing Rights Exceeding the 10% Threshold of Tier I Capital (-)
Net Deferred Tax Assets arising from Temporary Differences Exceeding the10% 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 Unconsolidated 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 (-)
Deductions from Tier I Capital in cases where there are no adequate Additional Tier I or Tier II Capitals
(-)
Total regulatory adjustments to Tier 1 capital
148,982
51,721
Tier 1 capital
2,517,391 2,417,129
ADDITIONAL CORE CAPITAL
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)
Third Parties’ shares in capital
Additional Core Capital before Deductions
Deductions from Additional Core Capital
Direct and Indirect Investments of the Bank on its own Additional Core Capital (-)
Institutions where the Bank Owns 10% or less of the Issued Share Capital Exceeding the 10%
The Total of Net Long Position of the Direct or Indirect Investments in Additional Tier I Capital of
Unconsolidated 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 (-)
59,935
59,266
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 (-)
6,538
10,848
Total Core Capital
2,450,918 2,347,015
Current
Period
Prior
Period
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)
356,475
417,005
Pledged Assets of the Shareholders to be used for the Bank's Capital Increases
General Provisions
179,624
164,430
Third Parties’ shares in Tier II Capital
Tier II Capital before Deductions
536,099
581,435
Deductions from Tier II Capital
Direct and Indirect Investments of the Bank on its own Tier II Capital (-)
Institutions where the Bank Owns 10% or less of the Issued Share Capital Exceeding the 10%
The Total of Net Long Position of the Direct or Indirect Investments in Additional Core Capital and Tier
II Capital of Unconsolidated 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
536,099
581,435
CAPITAL
2,987,017 2,928,450
Loans Granted against the Articles 50 and 51 of the Banking Law (-)
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 (-)
9,669
10,325
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 (-)
23,088
23,088
Deductions as per the Article 20, Clause 2 of the Regulation on Measurement and Assessment of
Capital Adequacy Ratios of Banks (-)
7,800
10,440
The Portion of Total of Net Long Positions of the Investments in Equity Items of Unconsolidated 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 Unconsolidated 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 Unconsolidated 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
EQUITY
2,946,460 2,884,597
Amounts lower than Excesses as per Deduction Rules
Remaining Total of Net Long Positions of the Investments in Equity Items of Unconsolidated 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 Unconsolidated Banks and
Financial Institutions where the Bank Owns more than 10% or less of the Tier I Capital
Remaining Mortgage Servicing Rights
-
Components of items of shareholders’ equity subject to temporary applications
Minority shares in Tier I Capital
Amount Included in
Equity Calculation
Total
Amount
25,913
44,351
Third Parties’ shares in capital
-
-
Third Parties’ shares in Tier II Capital
-
-
356,475
494,736
Debt Instruments and the Related Issuance
Premiums Defined by the BRSA (Issued before
1.1.2014)
If write-down, write-down trigger(s)
If write-down, full or partial
If write-down, permanent or temporary
If temporary write-down, description of write-up mechanism
Position in subordination hierarchy in liquidation (specify instrument type
immediately senior to instrument)
Whether conditions which stands in article of 7 and 8 of Banks’ shareholder
equity law are possessed or not
According to article 7 and 8 of Banks' shareholders equity law that are not
possesed
If convertible, conversion trigger (s)
If convertible, fully or partially
If convertible, conversion rate
If convertible, mandatory or optional conversion
If convertible, specify instrument type convertible into
If convertible, specify issuer of instrument it converts int
Existence of step up or other incentive to redeem
Noncumulative or cumulative
Yes
8-2-(a), (ç), (e), (ğ)
8-2-(a), (ç), ( e), (ğ)
Yes
Yes
8-2-(a), (ç), ( e), (ğ)
8-2-(a), (ç), (e), (ğ)
-
Mandatory
2% step-up for
interest if the loan
is not repaid at the
end of the 5th year
Noncumulative
Floating
6m Libor + 5.25%
p.a.
-
104.7
145.9
347
30.09.2013
Time
15.12.2023
Yes
50,000
28.09.2018
Yes
38.2
25.4
47.8
31.8
347
347
07.09.2012
30.09.2013
Time
Time
07.09.2022
29.09.2023
Yes
Yes
15,000
10,000
07.09.2017
28.09.2018
Coupons / dividends
Floating
Floating
6m Euribor + 4.25% 6m Euribor + 5.25%
p.a.
p.a.
-
Yes
Valid on
Consolidated and
Unconsolidated
Basis
Subordinated Loan
IFC (International
Finance
Corporation)
Regulation on
Equity of Banks
(Published in the
Official Gazette
Nr. 28756 dated 5
September 2013)
Before core capital,
aftter all creditors
2% p.a.
-
Coupon rate and any related index
Existence of a dividend stopper
Fully discretionary, partially
discretionary or mandatory
Current Period
EFSE (European
EFSE (European
Fund For Southeast Fund For Southeast
Europe)
Europe)
Regulation on
Regulation on
Equity of Banks
Equity of Banks
(Published in the
(Published in the
Official Gazette
Official Gazette
Nr. 28756 dated 5
Nr. 28756 dated 5
September 2013)
September 2013)
Regulatory treatment
Yes
Yes
Valid on
Valid on
Consolidated and
Consolidated and
Unconsolidated
Unconsolidated
Basis
Basis
Subordinated Loan Subordinated Loan
Mandatory
Mandatory
2% step-up for
2% step-up for
end of the 5th year end of the 5th year
Noncumulative
Noncumulative
Noncumulative
Convertible or non-convertible
Write-down feature
Before core capital, Before core capital, Before core capital,
Fixed
Fixed or floating dividend/coupon
Mandatory
4.1
12.7
347
30.06.2008
Time
25.06.2018
Yes
-
Yes
Valid on
Consolidated and
Unconsolidated
Basis
Subordinated Loan
KFW
(KREDİTANSTALT
FÜR
WİEDERAUFBAU)
Regulation on
Equity of Banks
(Published in the
Official Gazette
Nr. 28756 dated 5
September 2013)
Eligible on Unconsolidated/ consolidated / both unconsolidated and consolidated
Instrument type
Amount recognised in regulatory capital (Currency in million TRL, as of most
recent reporting date)
Par value of instrument (Million TRL)
Accounting classification
Original date of issuance
Demand or time
Original maturity date
Issuer call subject to prior supervisory approval
Optional call date, contingent call dates and redemption amount
Subsequent call dates, if applicable
Subject to 10% deduction as of 1/1/2015
Governing law(s) of the instrument
İssuer
Unique identifier (eg CUSIP, ISIN or Bloomberg identifier for private placement)
Details on Subordinated Liabilities:
8-2-(a), (ç), (e), (ğ)
Yes
-
Mandatory
2% step-up for
end of the 5th year
Noncumulative
Floating
6m Libor + 5.25%
p.a.
-
83.8
116.7
347
30.09.2013
Time
29.09.2023
Yes
40,000
28.09.2018
Yes
Valid on
Consolidated and
Unconsolidated
Basis
Subordinated Loan
EBRD (European
Bank for
Reconstruction and
Development)
Regulation on
Equity of Banks
(Published in the
Official Gazette
Nr. 28756 dated 5
September 2013)
8-2-(a), (ç), (e), (ğ)
Yes
-
Mandatory
2% step-up for
end of the 5th year
Noncumulative
Floating
6m Libor + 5.25%
p.a.
-
20.9
29.2
347
27.12.2013
Time
27.12.2023
Yes
10,000
27.12.2018
Yes
Valid on
Consolidated and
Unconsolidated
Basis
Subordinated Loan
ECO Trade and
Development Bank
Regulation on
Equity of Banks
(Published in the
Official Gazette
Nr. 28756 dated 5
September 2013)
8-2-(a), (ç), (e),(ğ)
Yes
-
Mandatory
2% step-up for
end of the 5th year
Noncumulative
Floating
6m Libor + 6.50%
p.a.
-
79.4
110.6
347
30.12.2013
Time
27.12.2023
Yes
37,900
27.12.2018
Yes
Valid on
Consolidated and
Unconsolidated
Basis
Subordinated Loan
EBRD (European
Bank for
Reconstruction and
Development)
Regulation on
Equity of Banks
(Published in the
Official Gazette
Nr. 28756 dated 5
September 2013)
ŞEKERBANK T.A.Ş.
189
190
ŞEKERBANK T.A.Ş.
The Parent Bank, within the framework of its capital adequacy assessment
process, determines limits for risks (credit risk, market risk and operational risk)
covered under the Capital Adequacy calculations as well as for risks (concentration
risk, interest rate risk in the banking book, liquidity risk, etc.) which are not covered
under these calculations. Thus, the Parent Bank determines its “Risk Limits” and
with the help of these limits and by means of applying stress tests and scenario
analyses, it evaluates the adequacy of its capital level against a background of its
current and also projected activities.
The Parent Bank determines “Key Risk Indicators” as “early warning signals” within
the context of the “Risk Limits”. Both the “Risk Limits” and “Key Risk Indicators”
are determined by taking into consideration the Parent Bank’s annual budget and
strategy; its risk appetite; the volume, qualifications and complexity of its products/
services; its experience and prior performance as well as the market conditions.
The “Risk Limits” and “Key Risk Indicators” are determined through risk based
amounts and nominal amounts. In this scope, regulatory limits and applications,
Basel Committee applications, international best practices, concentrations and
tolerance levels as well as criteria based on the Parent Bank’s capital levels are
used. In any case, the “Risk Limits” and “Key Risk Indicators” cannot violate the
Banking Law and related regulations.
The “Risk Limits” and “Key Risk Indicators” are reviewed and revised at least
annually by the senior management with respect to market conditions and
changes in the Parent Bank’s strategies. The review process aims to determine
whether the current “Risk Limits” and “Key Risk Indicators” are meaningful and
sufficient enough compared to the Parent Bank’s risk appetite. The revised “Risk
Limits” and “Key Risk Indicators” all take effect upon the approval of the Board of
Directors.
II. Explanations Related to the Consolidated Credit Risk
Credit risk is the possibility of loss that the Group may face, in the event that the
counter party fails to fulfil wholly or partly of its obligations in a timely manner, by
breaching of its contractual obligations.
The Group’s lending activities are executed in line with the legislation and in
accordance with the policies and procedures approved by the Boards of Directors
under the principle of “segregation of duties” throughout marketing, allocation,
monitoring, controlling and auditing activities.
Credit allocation is performed on a debtor or a debtor group basis within certain
limits. These are determined within a framework of authorisation limits, set in
line with the legislation, for the Board of Directors, Credit Committee, Head Office
Credit Allocation Council (as of January 2015 this Committee has been abolished),
General Manager, Assistant General Managers (Corporate and Commercial
Banking, Retail Banking, Financial Institutions), Regional Office Managers, Regional
Office Credit Committee as well as the Branch Credit Committees and are
approved taking into consideration the financial position and needs of the credit
customer. Similiar structures are applied in the Parent Bank’s subsidiaries.
The rating / scoring systems are effectively used in credit allocation. As per the
Group’s credit policies, limits and collaterals are regarded as risk mitigating factors
complementary to each other. As provided by the “Regulation on the Procedures
and Principles for Determination of Qualifications of Loans and Other Receivables
by Banks and Provisions to Be Set Aside”, credit qualities of the debtors are
regularly monitored, and credit limits are revised once a year or whenever deemed
necessary parallel to the economic conditions. The majority of the statements of
accounts received for loans are derived from audited financial statements. The
Group also receives sufficient amounts of collateral for loans and other receivables.
These can be in the form of guarantees, mortgages on real estates, cash blockage
or cheques depending on the customer’s financial structure and the type of the
credit facility.
The Boards of Directors have approved concentration limits by industries, regions,
debtors / debtor groups monitored on a regular basis; all of which are reviewed
and revised at least once a year, with respect to market conditions and changes in
the Group’s strategies.
Since the volume of prolonged and restructured loans and other receivables are
not material with regard to the Group’s financial statements, no additional followup methodology is needed to be developed in addition to those specified in the
legislation.
Within the framework of the capital adequacy calculations, indemnified non-cash
loans are subject to the same risk weighting treatment as overdue loans.
There are transaction limits as well as dealer limits by transaction types approved
by the Boards of Directors regarding the counterparty risk arising from the
Group’s on-and off-balance sheet transactions monitored on a daily basis. The
limits of correspondent banks allocated according to their credit qualities are
controlled on a daily basis, while risk concentration is monitored systematically.
When reverse positions of open positions are required in order to minimize
potential risks, positions are closed through the use of derivative transactions
aiming at risk downsizing.
The Group prefers to take country risk only for those financial institutions and
countries regarded at investment level by the international rating agencies and
thus, do not have the risk of failing to fulfil their minimum liabilities. Therefore, the
related potential risks do not constitute any material risk factor with regards to the
Group’s financial structure.
When evaluated together with financial activities of other financial institutions, the
Group, as an active participant in the international banking environment, has no
significant credit risk concentration.
Cash loans are classified in accordance with the regulation on “Methods and
Principles for the Determination of Loans and Other Receivables to be Reserved for
and Allocation of Reserves” and related provision is made:
- due period from 90 days up to 179 days “Loans and receivables with limited
collectability”
- due period from 180 days up to 359 days “Loans and receivables with doubtful
collectability”
- due period from 360 days and higher “Uncollectible loans and receivables”
Provision is set for the doubtful loans and the amount is charged in the
current period income statement by the Group. The provisioning amount for
non-performing loans are determined by the Parent Bank Management for
compensating the probable losses of the doubtful loan portfolio, by evaluating
the quality of loan portfolio, risk factors and considering the economy conditions,
other facts and related regulations.
191
ŞEKERBANK T.A.Ş.
Subsidiaries of the Parent Bank apply provisions of the regulation on “Methods and
and Allocation of Reserves”.
Total amount of exposures after offsetting specific provisions before credit risk
mitigation adjustments and the risk-weighted exposure amounts classified in
different risk groups and types according to the Basel II, are disclosed below for
the relevant period:
Risk types
Risk
Amount (*)
Total Risk
Weighted
Assets (**)
5,709,972
62,906
76,313
15,924
Contingent and Non-Contingent Claims on Regional
Governments and Local Authorities
Administrative Units and Non-commercial
Enterprises
8,043
6,364
-
-
-
-
Contingent and Non-Contingent Claims on Banks and
Capital Market Intermediary
260,106
169,188
Contingent and Non-Contingent Claims on Corporate
Receivables
8,984,503
8,279,806
Contingent and Non-Contingent Claims Included in
the Regulatory Retail Portfolios
5,631,059
4,090,813
Contingent and Non-Contingent Claims Secured by
Residential Property
5,497,500
4,401,095
Past Due Loans
293,536
262,472
1,149,360
2,165,800
-
-
-
-
-
-
Undertakings for Collective Investments in
Other Claims
Total
-
-
1,742,901
1,447,473
29,353,293
20,901,841
The figures represent total risk amounts after credit conversion factor and before credit risk
mitigation.
(**)
Total risk weighted assets are the arithmetical monthly average amounts in 2015.
(*)
As of 31 December 2015, the receivables of the Group from its top 100 cash loan
Thousand) with a share of 24.17 % in the total cash loans (31 December 2014
– 21.31%). The receivables of the Group from its top 200 cash loan customers
with a share of 29.35 % in the total cash loans (31 December 2014 – 26.71%).
As of 31 December 2015, the receivables of the Group from its top 100 non-cash
loan customers amount to TRL 2,532,916 Thousand (31 December 2014 – TRL
2,201,210 Thousand) with a share of 43.77 % in the total non-cash loans (31
December 2014 – 39.18%). The receivables of the Group from its top 200 noncash loan customers amount to TRL 3,143,380 Thousand (31 December 2014 –
TRL 2,818,212 Thousand) with a share of 54.32 % in the total non-cash loans (31
December 2014 – 50.16%).
As of 31 December 2015, the share of cash and non-cash receivables of the Group
from its top 100 customers in total balance sheet and off-balance sheet assets is
1.35 % (31 December 2014 – 1.27%). The share of cash and non-cash receivables of
the Group from its top 200 customers in total balance sheet and off-balance sheet
assets is 1.65 % (31 December 2014 – 1.60%).
As of 31 December 2015, the general loan loss provision related with the credit
risk taken by the Group is TRL 179,624 Thousand (31 December 2014 – TRL 164,430
Thousand).
-
USA, Canada
Other Countries
Associates, Subsidiaries and Entities
Under Common Control (Joint Vent.)
5,709,972
76,313
-
-
-
-
8,043
-
-
-
-
-
-
-
8,043
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
260,106
-
-
1,529
11,019
1,443
9,803
40,260
196,052
4,604,702
64,183
-
-
5,672
-
-
-
-
-
-
-
5,672
-
-
-
-
-
-
-
-
-
(**)
(*)
Total
10,828
-
Unallocated Assets/Liabilities (**)
Associates, Subsidiaries and Entities
Under Common Control (Joint Vent.)
-
-
-
USA, Canada
Other Countries
1,815
44,562
-
-
-
-
62,368
4,549,312
OECD Countries (*)
Domestic
Prior Period
Contingent
and NonContingent
Claims on
Sovereigns
8,984,503
9,514
10,665
-
-
13
15,148
61
8,949,102
-
-
-
-
-
-
-
-
-
199,250
-
-
5,045
10,967
1,840
7,269
51,132
122,997
-
-
236
-
70,703
379
1,460
4,890,266
Contingent
and NonContingent
Claims
Included
in the
Regulatory
Retail
Portfolios
-
-
-
1
-
-
-
-
-
-
-
-
-
-
5,027,289 216,320
-
-
115
90
10,157
710
3,001
5,013,216 216,320
Contingent
and NonContingent
Claims
Secured by
Residential
Property
1,149,360
-
-
50
-
39
24
102
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,258,474
-
-
-
-
18,267
-
-
1,240,207
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
792,307
111,524
123,309
-
7,083
2,005
670
814,554
122,189
125,183
11,117
10,218
27,949
48,013
706,003 28,194,070
Other
Claims
Total
928,120
107,524
9
-
15,329
1,635
693
945,666
120,698
5,405
11,057
245,809
19,463
56,495
500,751 24,252,674
- 1,554,061 25,657,267
-
-
-
-
-
-
-
-
Other
Claims
- 1,742,901 29,353,293
-
-
-
-
-
-
-
-
HigherUndertakings
Risk Collateralized
Past Categories
Mortgage
Due Defined by
Marketable Securitization Banks and
Transferable
Loans
Agency
Securities
Exposures Corporate
Securities
5,497,500 293,536
-
-
140
68
881
652
3,868
1,149,145
Undertakings
HigherShort-Term for Collective
Risk Collateralized
Mortgage
Past Categories
Due Defined by
Transferable
Loans
Agency
Securities
Exposures Corporate
Securities
5,491,891 293,535
Risk Types
5,631,059
-
-
155
29
759
317
3,052
5,626,747
Contingent
and NonContingent
Claims
Secured by
Residential
Property
Risk Types
Contingent
and NonContingent
Claims
Included
in the
Regulatory
Retail
Portfolios
7,764,272 4,963,044
6,718
13,174
-
-
83,136
9,470
209
7,651,565
Contingent
Contingent
Contingent
and NonContingent
and NonContingent
Contingent
Claims on
Contingent
and NonClaims on
and NonClaims on
Claims on
Contingent
Claims on
Capital
Claims on
Market
Corporate
and Local
Authorities
Enterprises
Risk Profile According to Geographical Concentrations
Geographical concentration of the significant risks in the significant areas as follows:
(**)
(*)
Total
12,733
-
Unallocated Assets/Liabilities (**)
-
-
-
-
76,313
5,697,239
OECD Countries (*)
Domestic
Current Period
Contingent
and NonContingent
Claims on
Sovereigns
Contingent
Contingent
Contingent
Contingent
and Nonand Nonand Nonand NonContingent
Contingent
Contingent
Contingent
and NonClaims on
and NonClaims on
Claims on
Claims on
Contingent
Claims on
Capital
Claims on
and Local
Market
Corporate
Authorities
Enterprises
Risk Profile According to Geographical Concentrations
Geographical concentration of the significant risks in the significant areas as follows:
ŞEKERBANK T.A.Ş.
192
-
-
5,709,972
Total
-
26,809
-
Education Services
Other
-
5,683,163
-
-
5,683,163
Services
-
Construction
-
Manufacturing
-
-
Fishery
Industry
-
-
Forestry
Agricultural
Current Period
Contingent
and NonContingent
Claims on
Sovereigns
76,313
74,025
-
-
-
-
2,288
-
-
-
2,288
-
-
-
-
-
-
-
-
-
8,043
5,094
757
65
-
-
-
867
-
602
2,291
-
13
641
-
654
-
-
4
4
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
260,106
65,167
-
-
-
-
194,939
-
-
-
194,939
-
-
-
-
-
-
-
-
-
8,984,503
871,618
140,329
13,884
16,907
706,415
464,675
329,920
431,593
1,365,245
3,468,968
1,717,455
195,521
2,436,842
204,891
2,837,254
3,959
7,439
77,810
89,208
5,631,059
655,537
36,075
11,985
-
255,434
6,673
195,767
50,711
1,258,596
1,815,241
459,931
3,524
919,319
41,186
964,029
5,558
2,009
1,728,754
1,736,321
41,499
3,502
213
-
8,369
1
5,791
2,516
94,171
114,563
49,215
587
65,055
1,920
67,562
318
90
20,289
20,697
5,497,500 293,536
863,841
120,647
15,949
-
341,368
22,247
201,838
607,106
843,559
2,152,714
1,073,886
11,992
679,985
27,702
719,679
2,026
3,790
681,564
687,380
1,149,360
924,435
5,113
3,246
-
9,285
243
10,770
2,086
52,489
83,232
38,298
58
76,340
1,318
77,716
5
1
25,673
25,679
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,742,901
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Claims
- 1,742,901
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Undertakings
Risk Collateralized
Past Categories
Mortgage
Transferable
Due Defined by
Securities
Loans
Agency
Securities
Exposures Corporate
Risk Types
Contingent
and NonContingent
Contingent
Contingent
and NonContingent Contingent
and NonContingent
and Nonand Non
Claims
Contingent
Contingent
and NonContingent
and NonClaims on
and NonIncluded Contingent
Claims on
Claims on
Contingent
in the
Claims
Contingent
Claims on
Claims on
Capital
Claims on Regulatory Secured by
Market
Corporate
Retail Residential
and Local
Property
Authorities
Enterprises
Banks Organizations Intermediary Receivables Portfolios
FC
535,777
180,066
1,356,711
130,785
1,667,562
2,992
4,060
22,070
29,122
209,063
593,343
409,334
766,027
46,369
13,128
-
398,533
Total
5,270,926
306,423
45,342
16,907
1,320,871
6,374,229
744,953
1,094,012
3,614,662
13,517,399
3,338,785
211,695
4,178,182
277,017
4,666,894
11,866
13,329
2,534,094
2,559,289
22,230,999 7,122,294 29,353,293
4,504,899
260,054
32,214
16,907
922,338
3,920,193 2,454,036
535,890
500,669
3,205,328
9,393,593 4,123,806
2,803,008
31,629
2,821,471
146,232
2,999,332
8,874
9,269
2,512,024
2,530,167
TRL
ŞEKERBANK T.A.Ş.
193
-
-
4,604,702
Total
-
12,674
-
Education Services
Other
-
4,592,028
-
-
4,592,028
Services
-
-
Manufacturing
Construction
-
-
-
Fishery
Industry
-
-
Prior Period
Agricultural
Forestry
Contingent
and NonContingent
Claims on
Sovereigns
64,183
62,368
-
-
-
-
1,815
-
-
-
1,815
-
-
-
-
-
-
-
-
-
5,672
4,122
127
1,414
-
-
-
-
-
-
1,541
-
-
5
-
5
-
-
4
4
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
199,250
107,023
-
-
-
-
-
-
92,227
-
-
-
92,227
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
572,657
37,767
15,470
2,416
215,784
6,540
163,860
33,959
1,198,718
1,674,514
412,429
7,015
875,749
43,735
926,499
10,491
4,945
1,361,509
1,376,945
7,764,272 4,963,044
683,591
133,416
24,206
2,867
610,363
252,039
347,939
327,539
1,234,083
2,932,452
1,598,505
111,232
2,261,002
100,458
2,472,692
435
4,063
72,534
77,032
39,267
2,190
158
-
6,274
79
4,935
835
55,173
69,644
54,203
302
38,014
3,655
41,971
143
49
11,043
11,235
5,027,289 216,320
1,062,218
100,096
14,706
-
274,239
31,380
175,981
469,072
767,467
1,832,941
905,953
22,517
699,524
32,549
754,590
1,565
4,036
465,986
471,587
1,258,474
1,129,958
5,167
1,348
438
6,650
147
3,479
2,228
52,267
71,724
23,712
193
23,898
642
24,733
59
52
8,236
8,347
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Claims
- 1,554,061
- 1,554,061
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Undertakings
Risk Collateralized
Past Categories
Mortgage
Due Defined by Marketable Securitization Banks and Transferable
Securities
Loans
Agency
Securities
Exposures Corporate
Risk Types
Contingent
and NonContingent
Contingent
Contingent
and NonContingent Contingent
and Non- Contingent
and Nonand Non
Claims
Contingent
Contingent
and NonContingent Contingent Contingent
and NonClaims on
and NonIncluded Contingent
Claims on
Claims on Contingent
in the
Claims
Contingent
Claims on
Claims on
Capital
Claims on Regulatory Secured by
Market
Corporate
Retail Residential
and Local
Property
Authorities
Enterprises
Banks Organizations Intermediary Receivables Portfolios
FC
218
-
20,582
20,800
41,895
91,936
338,441
Total
2,994,802
141,259
3,898,192
181,039
4,220,490
12,693
13,145
1,919,312
1,945,150
199,542
509,918
290,708
673,060
32,593
21,576
2,612
268,216
5,227,939
278,763
57,302
5,721
1,113,310
4,976,255
696,194
833,633
3,307,708
19,717,098 5,940,169 25,657,267
4,554,879
246,170
35,726
3,109
845,094
2,757,462 2,218,793
496,652
323,715
3,017,000
7,724,928 3,543,958 11,268,886
2,656,361
49,323
2,668,113 1,230,079
139,144
2,856,580 1,363,910
12,475
13,145
1,898,730
1,924,350
TRL
ŞEKERBANK T.A.Ş.
194
195
ŞEKERBANK T.A.Ş.
Risk Types
Current Period
Past Due Loans
Other Claims
Total
1 month
2,076,507
2,288
320
57,354
744,243
417,469
75,687
345
336,356
3,710,569
1–3 months 3–6 months 6–12 months
2,074
842
9,076
2,430
358
384
58,715
8,459
11,223
2,279,065
728,806
697,209
1,854,388
315,067
715,293
1,359,330
130,997
383,094
2,868
6,434
4,781
65,844
5,567,217
1,250,373
1,819,147
Over 1 year
2,982,981
73,911
3,240
3,715
2,508,325
1,632,599
3,251,075
20,136
970,288
6,693
11,452,963
Risk Weights
Current Period
0%
5,799,494
5,961,067
10%
-
20%
140,784
140,784
50%
473,424
5,488,548
75%
8,366,159
5,497,071
100%
13,424,071
11,116,463
150%
548,909
548,909
200%
600,448
600,448
250%
2
2
Deductions
from Equity
40,557
40,557
Risk Types
Prior Period
Past Due Loans
Other Claims
Total
1 month
2,012,605
45
88,786
360,707
298,414
50,287
658
271,546
3,083,048
1–3 months 3–6 months 6–12 months
164,442
3,465
980
1,227
932
645
38,404
2,276
1,245
1,941,570
442,364
667,351
1,674,503
330,070
724,331
1,228,133
142,733
321,243
7,137
455
47,809
5,055,871
969,649
1,715,795
Over 1 year
2,117,993
63,622
1,102
749
2,367,379
1,286,883
3,002,449
1,105,637
9,945,814
Risk Weights
Prior Period
0%
4,743,675
4,910,137
10%
-
20%
109,649
90,877
50%
439,217
5,049,906
75%
7,003,833
4,780,834
100%
12,102,420
9,567,041
150%
379,390
379,390
Deductions
200% 1250% from Equity
879,053
32
43,853
879,053
32
43,853
196
ŞEKERBANK T.A.Ş.
Information According to Counterparty and Sector Concentrations
Impaired Credits are the credits that either overdue more than 90 days as of the reporting date or are treated as impaired due to their creditworthiness. For such credits,
“specific provisions” are allocated as per the Provisioning Regulation.
Past Due Credits are the credits that overdue up to 90 days but not impaired. For such credits, “general provisions” are allocated as per the Provisioning Regulation.
The collections related to loans for which provision is made in the current period are reversed from the “Provision for Loans and Other Receivables” account in the income
statement. The collections related to loans written off or provisioned in prior years are recorded to “Collections Related to the Prior Period Expenses” under “Other
Operating Income” account and related interest income is credited to the “Interest Received from Non-performing Loans” account.
Current Period
Significant Sectors/Counterparties
Agricultural
Prior Period
Value
Impaired
Loans (**) Past Due Loans Adjustments (*)
Provisions (**)
Impaired
Value
Loans (**) Past Due Loans Adjustments (*)
Provisions (**)
72,030
140,603
4,521
30,227
41,581
73,859
2,636
25,787
71,099
140,066
4,504
29,843
40,962
73,206
2,613
25,549
Forestry
225
12
-
-
194
234
8
-
Fishery
706
525
17
384
425
419
15
238
209,772
131,763
4,238
97,145
166,183
179,507
6,408
104,609
5,300
2,449
79
2,493
7,957
7,491
267
3,744
203,520
127,369
4,096
94,287
157,444
171,074
6,107
100,397
Industry
Manufacturing
952
1,945
63
365
782
942
34
468
175,569
229,138
7,369
91,957
169,487
113,386
4,048
96,686
448,933
379,831
12,215
254,188
380,123
429,013
15,315
230,735
317,734
186,813
6,008
178,749
249,275
256,401
9,153
146,295
6,567
25,276
813
3,612
5,425
11,268
402
2,930
28,127
52,162
1,677
13,724
19,493
47,416
1,693
12,307
Construction
Services
234
1,391
45
119
301
1,545
55
189
27,283
61,138
1,966
11,355
35,174
43,856
1,566
23,475
162
-
-
51
906
-
-
468
Education Services
3117
1,324
43
708
2,894
3,201
114
1,628
Other
Total
65,709
51,727
1,663
45,870
66,655
65,326
2,332
43,443
138,445
278,242
8,947
89,677
118,226
256,331
7,821
81,803
1,044,749
1,159,577
37,290
563,194
875,600
1,052,096
36,228
539,620
Contains General Loan Loss Provision amount.
Non performing loans classified as “Financial assets at fair value through profit and loss”amounting to TRL 6,704 Thousand(31 December 2014 –TRL 6,325 Thousand) and Specific provision
amounting to TRL 2,131 Thousand (31 December 2014 – TRL 2,841 Thousand) in the current period.
(*)
(**)
197
ŞEKERBANK T.A.Ş.
Information related with Value Adjustments and Loan Loss Provisions
Openning Charge of
Provision
Other Closing
Specific Provision
539,620
560,435
(536,861)
-
563,194
General Loan Loss
Provision
165,003
54,070
(39,449)
-
179,624
Other Closing
Openning Charge of
Provision
Specific Provision
387,701
298,470
(146,551)
General Loan Loss
Provision
136,436
44,343
(16,349)
(*)
- 539,620
-
164,430
The Parent Bank effectively applies internal rating / scoring models in its credit
allocation processes. In this context, various rating and scoring models are used in
the credit risk assessment of diffferent clusters of customers: the rating model is
applied for corporate / commercial customers, the scoring models are customized
for the SMEs and for the micro-enterprises. Other scoring models are also in use
for retail loans and credit cards. All these models are reviewed and redeveloped on
a regular basis in line with the historical data analysis.
Current Period
AAA
AA
A
BBB
BB
B
Explanation
Loans
Non-cash loans
Total risk
Very High quality
200,630
418,886
619,516
627,586
High quality
230,899
396,687
Good quality
474,110
376,441
850,551
Quality
654,481
659,512
1,313,993
Medium Quality
1,936,084
1,044,259
2,980,343
2,450,593
Low Quality
1,811,740
638,853
Very low quality
1,787,425
959,811
2,747,236
1,996,350
330,146
2,326,496
C
Substandard
1,403,657
405,386
1,809,043
D
Highly substandard
791,771
145,424
937,195
5,535,422
411,876
5,947,298
CCC
CC
Non-rated (*)
Total
Explanation
Very High quality
High quality
Good quality
Quality
Medium Quality
Low Quality
Very low quality
Substandard
Highly substandard
Loans
139,184
247,265
408,805
774,539
1,254,212
2,052,892
1,365,572
1,290,673
1,288,931
857,675
5,137,730
14,817,478
Non-cash loans
Total risk
410,596
549,780
301,278
548,543
471,158
879,963
534,419
1,308,958
965,168
2,219,380
954,792 3,007,684
573,754
1,939,326
450,990
1,741,663
369,114
1,658,045
111,975
969,650
475,035
5,612,765
5,618,279 20,435,757
(*)
exceed TRL 5 million and/or credit limit does not exceed TRL 500 Thousand.
Credit Rating System
Rating
Prior Period
Rating
AAA
AA
A
BBB
BB
B
CCC
CC
C
D
Non-rated (*)
Total
16,822,569
5,787,281 22,609,850
(*)
exceed TRL 10 million.
III. Explanations Related to the Consolidated Market Risk
Market risk is the possibility of loss that the Group may face, in its trading books
value arising from movements in market prices.
The Parent Bank’s policies and procedures related to market risk are in line
with the “Regulation on Internal Systems of Banks” and the “Regulation on
Measurement and Evaluation of the Capital Adequacy of Banks” and approved by
the Board of Directors.
The Boards of Directors have approved both nominal-based limits (transaction,
dealer, desk and stop-loss limits) and risk-based limits (Value-at-Risk limits)
monitored on a daily basis; all of which are reviewed and revised at least once a
year, with respect to market conditions and changes in the Group’s strategies.
Within the context of Capital Adequacy, the Group’s market risk exposure is
In these calculations, the Group’s on- and off-balance sheet trading book items
covering the portfolio of trading securities, and derivatives are all taken into
consideration.
Within the Group, market risk exposure is measured, monitored and reported on
model.
is applied. Additionally, stress tests and scenario analyses are applied in order to
measure and monitor the impact of adverse movements in the markets, while the
effectiveness of the Parent Bank’s internal model is tested by using back tests on a
daily basis.
198
ŞEKERBANK T.A.Ş.
Amount
(I) Capital requirement to be employed for general market risk Standard method (*)
5,096
(II) Capital requirement to be employed for specific risk Standard method
4,888
Standard method for specific risk of necessary capital requirement on
securitization positions
-
(III)Capital requirement to be employed for currency risk Standard method
7,364
(IV)Capital requirement to be employed for commodity risk Standard method
-
(V)Capital requirement to be employed for settlement risk Standard method
-
(VI)Total capital requirement to be employed for market risk resulting
from options–Standard method
1,694
(VII)Counterparty credit risk capital requirement - Standard method
16,826
(VIII) Total capital requirement to be employed for market risk in banks
using risk measurement model
-
(IX) Total capital requirement to be employed for market risk
(I+II+III+IV+V+VI+VII+VIII)
35,868
(X) Market Value at Risk (12,5 x VIII) or (12,5 x IX)
448,350
(*)
Investment Partnerships’ positions under special approach scope, is shown under Capital
requirement to be employed for general market risk.
Average market risk table calculated at the end of the months during the period:
Current Period
Prior Period
Average Maximum Minimum Average Maximum Minimum
Interest Rate Risk (**)
Equity Risk (*)
Currency Risk
12,115
21,507
10,133
16,308
14,293
14
-
18
55
168
3,324
93
8,788
11,810
8,747
15,842
28,918
12,673
Commodity Risk
-
-
-
-
-
-
Settlement Risk
-
-
-
-
-
-
809
300
943
788
1,017
295
19,644
22,094
15,617
18,402
19,622
14,360
517,125
696,388
443,225 642,438
800,225
384,313
Option Risk
Counter Party Credit
Risk
Total Value Subject
to Risk
Market risk calculated from the investment funds is shown under equity risk.
Investment Partnerships’ positions under special approach scope , is shown under interest rate
risk .
(*)
(**)
Explanation Related to Consolidated Counter Party Risk
Counter party credit risk is the possibility of a loss that the Group may face, in
the event that the counter party to a transaction could default before the final
settlement of the transaction’s cash flows.
The Group sets country limits and counter party limits in order to limit its
concentration by means of limiting maximum risk per each country and counter
party. These limits are determined by means of evaluating the Group’s current
and targeted foreign trade volume and treasury needs, and take effect upon
the decree of the Boards of Directors. Within this scope, separate sub limits for
Foreign Trade and Treasury operations to be undertaken and separate limits for
different products within these two main categories are assigned. The sum of the
risks to be taken for different products in a country cannot exceed the country
limit assigned for the said country by the Boards of Directors.
These limits are monitored through the system and limit excisions are not allowed.
These limits as a whole or on a country or counter party basis are revised at least
once a year or when deemed necessary under the global market conditions, and
submitted to the Boards of Directors for approval.
In the event that the rating of a country declines below the acceptable levels
determined in the Parent Bank’s risk management policy approved by the Board
of Directors, country limits are reset in the system, ensuring that no additional
risk is taken in that country. In cases where the developments are negative but
the rating remains the same, it is evaluated whether the country risk should be
taken or not; if appropriate, it is ensured that no risk other than the current risk is
taken. In that case, the country limits assigned to that country in the system are
closed to new transactions in order to prevent an additional exposure, while, in
relation to the current exposure, the guarantee of the transaction is reinforced in
cases where possible. In cases where this is not possible, however, it is ensured
that the exposure is disposed of by searching the opportunities to distribute/sell it.
The guarantees acquired from the supra national organizations (EBRD, IFC, World
Bank, etc.) can be used to mitigate the country risk.
In case of various negative developments in a counterparty institution, the said
developments are evaluated, and the counterparty limits are reset in the system,
ensuring that no additional risk is taken for that institution. In relation to the
current risk, on the other hand, the guarantee of the transaction is reinforced if
possible, in line with the general loan process of the Group. Besides, the bank/
financial institution is contacted in order to mitigate the current exposure; efforts
are made to obtain collateral guarantees and close the exposure before its
maturity.
The guarantees from the supra national organizations (EBRD, IFC, World Bank,
etc.) and the other banks/financial institutions that are highly creditable to the
Group for the bank/financial institution subject to risk can be used to mitigate the
counterparty risk. The risk of the bank / financial institutions may be mitigated
through the guarantee of another bank / financial institution operating in the same
country with that bank / financial institution or in a different country.
199
ŞEKERBANK T.A.Ş.
Collateralise Support Annex (CSA) is designed as an attachment of derivative
agreements signed with counterparties (ISDA) as counterparty risk mitigation tool.
According to indemnification agreement, market value of derivative instruments
is determined on a daily basis and the amount of collateral that has to be hold is
determined according to the market value of derivative instruments.
The Boards of Directors have approved limits (position limits, stop-loss limits)
compliant with the regulatory “Foreign Exchange Net General Position / Equity
Standard Ratio” and based on the Group’s capital. These limits are monitored on a
daily basis and reviewed and revised at least once a year, with respect to market
conditions and changes in the Group’s strategies.
Collateral balances are followed under “Guarantees received” accounts when
guarantees are taken on behalf of the Bank and followed under “Guarantees given”
accounts when guarantees are possessed in the counterparty account.
Within the context of Capital Adequacy, the Group’s currency risk exposure is
In these calculations, the Group’s foreign currency assets and foreign currency
liabilities together with the forward transactions and gold position are all taken
into consideration.
Information Related to Consolidated Counter Party Risk
Interest Rate Swap Agreements
Cross Currency Swap Agreements
Commodity Agreements
Stock Agreements
Other
Positive Fair Value Gross Amount
Net off Benefits
Net off Current Risk Amount
Collaterals
Net Position of Derivatives
Current Period
51,938
215,864
19,023
137,513
179,639
57,191
Prior Period
100,443
229,416
16,893
141,445
165,480
31,632
IV. Explanations Related to Consolidated Operational Risk
a) The amount subject to Operational Risk is calculated by means of using
Basic Indicator Approach, in line with the article no: 23 and 24 of Regulation on
Measurement and Assessment of Capital Adequacy of Banks on yearly basis. The
amount for the current period is TRL 2,079,049 Thousand (31 December 2014 - TRL
1,833,992 Thousand).
Gross Income (GI)
The amount subject
to Operational Risk
(Total*12.5)
Total/
2 Prior
1 Prior Current Positive
Period
Period
Period
GI Year Ratio
Amount Amount Amount Numbers (%)
1,088,555 1,057,804 1,180,120
3
15
Total
166,324
2,079,049
b) The Parent Bank does not use the Standard Approach.
V. Explanations Related to the Consolidated Currency Risk
Currency risk is the possibility of loss that the Group may face, in its total on- and
off-balance sheet accounts and positions in foreign currencies, arising from
changes in exchange rates.
The Parent Bank’s policies and procedures related to currency risk are in line
with the “Regulation on Internal Systems of Banks” and the “Regulation on
Within the Group, currency risk exposure is measured, monitored and reported on
model. Among these methods, the “Variance Covariance Method” also known as
the “Parametric Method” is used in reporting, while the “Historical Simulation”
and the “Monte Carlo Simulation” methods, on the other hand, are used for
comparison, in times when volatility increases a great extent. VaR measurements
are based on an observation period covering the last 250 workdays and a 99 %
confidence level. In “Economic Capital” measurements based on VaR, a 10-day
holding period is applied.
of the Parent Bank’s internal model is tested by using back tests on a daily basis.
As of 31 December 2015, the Group’s balance sheet short position is TRL 2,913,789
Thousand (31 December 2014 – TRL 2,361,552 Thousand short) and long position on
the off balance sheet amounting to TRL 2,946,962 Thousand (31 December 2014 TRL 2,441,489 Thousand long), resulting in total net long position amounting to TRL
33,173 Thousand (31 December 2014- TRL 79,937 Thousand total net long).
The announced current foreign exchange buying rates of the Parent Bank at 31
December 2015 and the previous five working days in full TRL are as follows:
USD
CHF
GBP
100 JPY
EURO
24.12.2015 25.12.2015 28.12.2015 29.12.2015 30.12.2015
2.9187
2.9123
2.9157
2.9084
2.9076
2.9510
2.9425
2.9445
2.9368
2.9278
4.3414
4.3439
4.3417
4.3141
4.3007
2.4189
2.4146
2.4133
2.4098
2.4078
3.1968
3.1904
3.2006
3.1921
3.1776
31.12.2015
2.9181
2.9354
4.3181
2.4180
3.1838
The simple arithmetic averages of the major current foreign exchange buying
rates of the Parent Bank for the thirty days before 31 December 2015 are as
follows:
USD
CHF
GBP
100 JPY
EURO
Monthly Average
Foreign Exchange Rate
2.9177
2.9269
4.3692
2.3930
3.1765
200
ŞEKERBANK T.A.Ş.
Information on the foreign currency risk of the Group:
EUR
Current Period
Assets
Cash (Cash in Vault, Foreign Currency
Cash, Money in Transit, Cheques
Purchased) and Balances with the
Due From Other Banks and Financial
Institutions
Financial Assets at Fair Value
Through Profit and Loss
Loans
Subsidiaries, Associates and
Entities Under Common Control
Tangible Assets
Intangible Assets
Other Assets
Total Assets
Liabilities
Bank Deposits
Foreign Currency Deposits
Funds Provided From
Securities Issued
Sundry Creditors
Other Liabilities
Total Liabilities
Non-Cash Loans
Prior Period
Total Assets
Total Liabilities
Non-Cash Loans
USD
Other FC
Total
423,707 1,388,858
464,071
2,276,636
15,272
23,785
72,891
1,940
5,868
920,117 2,688,864
32,843
7,808
3,641,824
413
1,998
227,458
136,268
1,607,056 4,237,541
6,737
527,436
413
1,998
370,463
6,372,033
422,181
274,881
2,322,318 2,436,499
-
9,826
250,699
-
706,888
5,009,516
-
806,686 2,516,481
104,972
13,627
2,481
6,176
3,658,638 5,247,664
114,662
4,333
379,520
3,323,167
233,261
12,990
9,285,822
33,834
(2,051,582) (1,010,123)
1,993,177 1,100,000
2,818,608 2,470,221
825,431 1,370,221
590,344 1,420,539
147,916 (2,913,789)
(146,215) 2,946,962
183,753 5,472,582
329,968 2,525,620
343
2,011,226
Derivative Financial Liabilities Held-for-Trading: TRL : 35,314 Thousand
Unearned income from instalment sale of assets: TRL 1,984 Thousand.
General Provisions:TRL 754 Thousand
Equity: TRL 7,189 Thousand
amounting TRL 94,184 Thousand are shown under loans. The principal amount of currency
indexed funds borrowed amounting to TRL 19,210 Thousand and accruals amounting TRL 111
Thousand are shown in the Funds Provided From Other Financial Institutions line. According to
the regulation about Foreign Currency Net General Position / Equity Standard Ratio Calculation,
Foreign Currency amounts that are not shown in the present currency risk table are as follows:
General Provisions:TRL 652 Thousand
Equity: TRL 2,678 Thousand
Foreign currency sensitivity:
The Group is mainly exposed to EUR and USD currencies.
The following table details the Group’s sensitivity to a 10 % increase or decrease
in the TRL against USD and EUR. 10 % is the sensitivity rate used when reporting
foreign currency risk internally to the top management and represents
management’s assessment of the possible change in foreign exchange rates. A
positive number indicates an increase in profit or loss and equity when the TRL
appreciates against USD and EUR.
Increase in
currency rate in %
Effect on
profit or loss
Effect on equity
31.12.2015 31.12.2014 31.12.2015 31.12.2014 31.12.2015 31.12.2014
1,087,495 3,865,066
3,059,585 4,419,355
(1,972,090) (554,289)
1,973,996
623,129
2,694,941 2,553,200
720,945 1,930,071
455,187 1,437,310
527,794 5,480,355
362,967 7,841,907
164,827 (2,361,552)
(155,636) 2,441,489
103,002
5,351,143
258,638 2,909,654
232 1,892,729
USD
10
10
8,988
6,884
719
268
EUR
10
10
(5,840)
191
-
-
The Group’s sensitivity to foreign currency rates has not changed much during the
current period.
201
ŞEKERBANK T.A.Ş.
VI. Explanations Related to the Consolidated Interest Rate Risk
Interest rate risk is the possibility of loss that the Group may face, in relation to its
structural position arising from adverse movements in interest rates.
The Parent Bank’s policies and procedures related to interest rate risk are in
line with the “Regulation on Internal Systems of Banks” and the “Regulation on
Within the context of Capital Adequacy, the Group’s interest rate risk exposure is
The Group takes interest rate risk positions in both the trading book and banking
book. The interest rate risk arising from the trading book is evaluated within the
scope of market risk, and thus, measured, monitored, and managed in line with
market risk policies and procedures.
Within the Parent Bank, interest rate risk exposure is measured, monitored and
reported on a daily basis. In this context, “Value-at-Risk (VaR) Methods” are applied
as internal model.
“Monte Carlo Simulation” methods, on the other hand, are used for comparison, in
times when volatility increases a great extent.
Current Period (*)
Assets
Cash (Cash in Vault, Foreign Currency Cash,
Money in Transit,Cheques Purchased) and
Balances with the Central Bank of Turkey
Financial Assets at Fair Value Through Profit and
Loss
Loans
Liabilities
Bank Deposits
Other Deposits
Sundry Creditors
Securities Issued
(*)
VaR measurements are based on an observation period covering the last 250
workdays and a 99 % confidence level. In “Economic Capital” measurements based
on VaR, a 10-day holding period is applied.
of the Parent Bank’s internal model is tested by using back tests on a daily basis.
It is the priority of the Asset Liability Management to provide protection against
adverse movements in market interest rates. In this context, gap analyses,
duration and economic value analyses as well as sensitivity analyses are evaluated
on a weekly basis by the Parent Bank’s Asset Liability Committee. Simulations
on net interest income are performed according to macroeconomic indicator
estimations in the Parent Bank’s budget targets, while the potential negative
impact of adverse movements in market interest rates on the financial position
and cash flows is minimized through target revisions. The Group management
monitors the market interest rates on a daily basis, and is able to change the
interest rates applied by the Group whenever it is necessary.
USD
JPY
TRL
0.04
0.23
-
11.55
2.33
4.96
-
5.00
5.96
8.08
5.28
-
6.07
9.35
4.49
14.71
5.06
1.45
1.89
0.01
1.54
0.85
1.89
0.13
2.75
-
11.55
10.63
9.53
11.16
7.14
EUR
USD
JPY
TRL
0.54
0.33
-
11.08
2.68
5.86
-
5.63
6.19
8.08
1.97
2.24
0.14
2.79
5.27
-
6.26
9.39
5.11
15.44
4.94
Interest rates belong to the Parent Bank.
Prior Period (*)
Assets
Cash (Cash in Vault, Foreign Currency Cash,
Money in Transit, Cheques Purchased) and
Balances with the Central Bank of Turkey
Financial Assets at Fair Value Through Profit and
Loss
Loans
Liabilities
Bank Deposits
Other Deposits
Sundry Creditors
Securities Issued
(*)
EUR
Interest rates belong to the Parent Bank.
2.01
2.34
0.1
1.94
10.8
10.13
9.59
10.64
6.31
202
ŞEKERBANK T.A.Ş.
Information related to the interest rate sensitivity of assets, liabilities and off-balance sheet items (based on repricing dates)
Up to 1
Month
1-3
Months
Cash (Cash in Vault, Foreign Currency Cash, Money in Transit, Cheques
Purchased and Balances with the Central Bank of Turkey
195,872
15,385
-
-
-
2,626,298
2,837,555
60,420
128
822
-
-
39,368
100,738
36,088
14,872
41,874
63,943
6,071
671
163,519
7,000
-
-
-
-
-
7,000
207,355
473,501
479,880
361,105
195,736
7,396
1,724,973
6,575,352
1,381,968
2,687,048
5,625,374
551,921
906
16,822,569
206,332
264,961
799,898
-
542
-
1,271,733
391,351
119,485
207,354
210,283
7,765
1,814,429
2,750,667
7,679,770
2,270,300
4,216,876
6,260,705
762,035
Current Period
3-12
Months
1-5
Years
and Over
Bearing
Total
Assets
Loans (*)
Other Assets
Total Assets
4,489,068 25,678,754
Liabilities
Bank Deposits
951,816
69,434
5,431
-
-
440,625
1,467,306
Other Deposits
7,574,121
2,974,015
1,191,108
16,168
-
1,670,826
13,426,238
2,060,413
2,054,034
6,379
-
-
-
-
Sundry Creditors
95,290
4,806
-
-
-
249,308
349,404
Securities Issued
-
696,523
278,930
335,126
-
-
1,310,579
930,369
562,325
2,054,177
188,334
179
70
3,735,454
142,497
62,999
26,391
90,186
149
3,007,138
3,329,360
11,748,127
4,376,481
3,556,037
629,814
328
5,367,967 25,678,754
Other Liabilities
Total Liabilities
-
-
660,839
5,630,891
761,707
-
7,053,437
(4,068,357)
(2,106,181)
-
-
-
(878,899)
(7,053,437)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,068,357)
(2,106,181)
660,839
5,630,891
761,707
(878,899)
-
Total Position
The Group classified Loans and Receivables amounting to TRL 382,730 Thousand, under financial assets at fair value through profit and loss. Non performing loans classified as “Financial assets at
(*)
203
ŞEKERBANK T.A.Ş.
Prior Period
Up to 1
Month
1-3
Months
3-12
Months
1-5
Years
and Over
Bearing
Total
Assets
Cash (Cash in Vault, Foreign Currency Cash, Money in Transit, Cheques
Purchased) and Balances with the Central Bank of Turkey
31,869
-
-
-
-
2,312,974
82,456
-
707
-
-
63,019
146,182
41,851
12,803
23,810
86,819
5,108
437
170,828
2,344,843
8,000
-
-
-
-
-
8,000
356,875
393,099
295,098
3,246
1,555
6,884
1,056,757
5,577,312
1,044,351
2,463,278
5,222,977
508,851
709
14,817,478
207,736
395,228
766,216
-
329
-
1,369,509
Other Assets
330,950
115,973
163,685
230,253
21,675
1,496,592
2,359,128
6,637,049
1,961,454
3,712,794
5,543,295
537,518
3,880,615
22,272,725
Loans (*)
Total Assets
Liabilities
Bank Deposits
624,046
64,267
3,007
-
-
277,723
969,043
Other Deposits
7,194,571
2,665,112
1,217,968
17,557
-
1,555,284
12,650,492
1,496,282
-
-
-
-
-
1,496,282
Sundry Creditors
56,033
4,217
-
-
-
328,634
388,884
Securities Issued
180,935
765,409
48,388
124,201
-
-
1,118,933
227,002
867,992
854,279
185,398
337,408
22
2,472,101
Other Liabilities
Total Liabilities
195,652
122,702
8,124
32,544
8,855
2,809,113
3,176,990
9,974,521
4,489,699
2,131,766
359,700
346,263
4,970,776
22,272,725
-
-
1,581,028
5,183,595
191,255
-
6,955,878
(3,337,472) (2,528,245)
-
-
-
(1,090,161) (6,955,878)
3,000
-
-
-
-
-
3,000
-
-
(3,000)
-
-
-
(3,000)
(3,334,472) (2,528,245)
1,578,028
5,183,595
191,255
(1,090,161)
-
Total Position
(*)
The Group classified Loans and Receivables amounting to TRL 348,713 Thousand, under financial assets at fair value through profit and loss. Non performing loans classified as “Financial assets at
Interest rate sensitivity:
As of the balance sheet date, under the assumption that market interest rates change by 1 % for both the Turkish Lira and foreign currency denominated items and all
other things stay constant:
•
The Group’s net interest income would grew by 3.67 % or by TRL 41,505 Thousand (31 December 2014- Net interest income of the Group would grew by 3.02 % or by
In the first step, net interest income is calculated by evaluating interest rate sensitive assets and liabilities with their original interest rates. In the second step, interest rate
sensitive assets and liabilities are evaluated under the assumption that the market interest rates rise by a 100 bps parallel shift. The difference constitutes the sensitivity of
net interest income.
204
ŞEKERBANK T.A.Ş.
The interest rate risk of the banking book items:
Economic valuation differences from fluctuations on interest rates, in different
currencies, are presented in the table below (*):
The Group may be exposed to interest rate risk in the banking book arising from:
•
•
•
•
Repricing Risk is the major source of Interest Rate Risk. It arises from the
mismatches in maturities (in instruments with fixed interest rates) and the
mismatches in repricing frequencies (in instruments with floating interest
rates) within the Group’s assets, liabilities and interest bearing off balance
sheet items.
Yield Curve Risk arises from unanticipated changes in the relationships across
the spectrum of maturities; i.e. the slope and the shape of the yield curve.
Therefore, it exacerbates the impact stemming from the mismatches in
maturities and repricing frequencies.
Basis Risk arises from imperfect correlations in the spreads due to imperfect
adjustment of rates earned and paid on different instruments within the
Group’s assets, liabilities and interest bearing off balance sheet items with
otherwise similar maturities or repricing frequencies.
Optionality Risk arises from the behavioural optionality embedded within the
Group’s assets, liabilities and interest bearing off balance sheet items, differing
from their contractual maturities; such as prepayment (in part or in full) of
loans, calling of wholesale funding, and withdrawals or roll-overs of demand
deposits as well as time deposits.
Current Period Currency
TRL
EURO
USD
(437,106)
(15.12)%
-400
415,148
14.36%
+200
15,302
0.53%
-200
(6,259)
(0.22)%
+200
(5,482)
(0.19)%
-200
6,226
0.22%
415,115
14.36%
(427,286)
(14.78)%
(*)
(Gain) /
Equity – Loss/
Loss Shareholders’ Equity
+500
The interest rate risk table belongs to the Parent Bank.
Prior Period Currency
The Parent Bank’s policies and procedures related to interest rate risk are in
line with the “Regulation on Internal Systems of Banks” and the “Regulation on
the Parent Bank’s Board of Directors.
TRL
The Boards of Directors have approved Risk Limits regarding the interest rate
risk arising from the banking book, monitored on a weekly basis; all of which are
reviewed and revised at least once a year, with respect to market conditions and
changes in the strategies. These limits are based on the capital and determine the
acceptable level of interest rate risk by certain maturity buckets.
USD
The Group employs two separate approaches, i.e. “income approach” and
“economic value approach” in order to measure and monitor the impact of
interest rate risk on its income and capital. The “income approach” is employed
in order to calculate the impact of movements in market interest rates on Net
Interest Income, while the “Economic Value Approach” is employed in order to
calculate the same impact on the Economic Value of Equity. As the “Economic
Value Approach” offers a much more comprehensive view since it considers the
present value of all the future cash flows, it constitutes the base for the Parent
Bank’s Asset Liability Management. Additionally, stress tests and scenario analyses
are applied in order to measure and monitor the changes in interest rate sensitive
on- and off-balance sheet items, arising from adverse movements in interest
rates.
Applied Shock
(+/- x basis point)
Applied Shock
(+/- x basis point)
(Gain) /
Equity – Loss/
Loss Shareholders’ Equity
+500
(376,277)
(13.43)%
-400
346,626
12.38%
+200
10,395
0.37%
-200
(1,117)
(0.04)%
+200
(8,188)
(0.29)%
-200
8,999
0.32%
354,508
12.66%
(374,070)
(13.36)%
EURO
(*)
The interest rate risk table belongs to the Parent Bank.
VII. Explanations Related to Consolidated Stock Position Risk
Consolidated Stock Position Risk Due from Banking Book: None.
VIII. Explanations Related to Consolidated Liquidity Risk Management and
Consolidated Liquidity Coverage Ratio
Liquidity risk is the possibility of a loss that the Group may face, when there is not
sufficient cash or cash inflow to meet the cash outflow in full and also in time.
Liquidity risk may also occur when the market penetration is not adequate,
when open positions cannot be closed in time, at suitable prices and at sufficient
amounts, due to some barriers and some break-ups in the markets.
205
ŞEKERBANK T.A.Ş.
a) Information on risk capacity of the Parent Bank, responsibilities and structure
of liquidity risk management, the Parent Bank’s internal liquidity risk reporting,
communication between the Board of Directors and business lines on liquidity risk
strategy, policy and application:
The major policy of the Parent Bank is to maintain an asset structure that it will be
sufficient to fulfill all its obligations through the use of liquid sources in time and in
a sound manner.
The objective of the liquidity risk management is to maintain the Parent Bank’s
financial stability by means of maintaining the Parent Bank’s liquidity risk exposure
at measurable and tolerable levels. Thus, it is also the objective to protect the
Parent Bank’s shareholders from any potential loss that might arise from adverse
movements in the Parent Bank’s liquidity position.
The Parent Bank’s policies and procedures related to the liquidity risk are approved
by the Parent Bank’s Board of Directors.
The major factors mentioned below are addressed in those policies and
procedures:
The Oversight of the Board of Directors of the Parent Bank:
Accordingly, the Board of Directors of the Parent Bank set the Asset Liability
Committee (ALCO) as the senior management committee responsible for
management of the Parent Bank’s balance sheet, usage of funds, and financial
management. ALCO sets the strategies for management of the balance sheet,
funding, source planning and liquidity as well as conducting stress tests and
scenario analyses. Treasury implements these strategies in order to manage
liquidity.
The Board of Directors has accepted “Risk Limits” as part of the Parent Bank’s
policies and procedures related to the liquidity risk. The compliance with these
limits are monitored on a regular basis; all of which are reviewed and revised (if
deemed necessary) at least once a year, with respect to the market conditions and
changes in the Parent Bank’s strategies.
The compliance with the “Risk Limits” is a mandatory agenda item in the regular
monthly meetings of the Board of Directors.
The liquidity risk profile is analysed, monitored, and assessed by the Risk
Management Unit in the Parent Bank. The said Unit presents its findings through
those assessments as well as the compliance with the “Risk Limits” to ALCO on a
weekly basis and to the Parent Bank’s Board of Directors on a monthly basis.
-
The Board of Directors approves policies and procedures related to the
liquidity risk, all in line with the Parent Bank’s annual budget and the growth
strategies for medium and long term.
b) Information on the centralization degree of liquidity management and funding
strategy and the functioning between the Parent Bank and the Parent Bank’s
subsidiaries:
-
The Board of Directors determines the capital structure to cover the Parent
Bank’s liquidity risk profile, all in line with the Parent Bank’s annual budget and
the growth strategies for medium and long term.
-
The Board of Directors segregates the duties, authorities and responsibilities
related to measuring, monitoring, controlling, auditing and management of
the liquidity risk, through internal regulations on related committies and units.
The management of liquidity has a decentralised structure. In this context,
each subsidiary executes its liquidity management function by its own units/
departments/services responsible for carrying out the function of the financial
management. Besides, the Parent Bank provides funding to its subsidiaries
in line with the regulatory limits while also taking the market conditions into
consideration.
The Oversight of the Senior Management of the Parent Bank:
-
The Parent Bank’s senior management implements systems and standards
related to measuring, monitoring, controling, auditing and management of the
liquidity risk, with respect to its duties, authorities, and responsibility areas.
-
The Parent Bank’s senior management takes measures to ensure the
development of technical konwledge and competencies of human resources
as well as information systems infrastructure so that the measuring,
monitoring, controling and auditing of the liquidity risk, are all executed in a
sound manner.
-
The Parent Bank’s senior management analyses potential liquidity risk which
may arise from the new banking products and services which the Bank plans
to implement.
The Parent Bank’s Board of Directors and senior management segregate the
responsibilities within the scope of the liquidity risk management among the Asset
Liability Committee, Treasury and Risk Management Units.
c) Information on the Parent Bank’s funding strategy including the policies on
funding types and variety of maturities:
Liquidity is accepted as the ability of a bank to fund increases in its assets and meet
its obligations as they come due, without incurring unacceptable losses.
In management of the Parent Bank’s liquidity, the following factors are taken into
consideration:
-
-
-
-
-
Current and foreseen asset quality for the coming period,
Current and foreseen funding requirements for the coming period,
Creation of assets that are easily liquidated in the markets,
Creation of assets that have regular cash flows,
Diversification of funding sources, prevention of concentration.
Deposits are the foundation of the Parent Bank’s liquidity. It is deemed essential to
maintain a stable and cost-effective deposit base.
206
ŞEKERBANK T.A.Ş.
The Parent Bank acknowledges that the deposit structure in Turkish banking
industry is generally short-term; that the time deposits are rolled over frequently,
and that their real maturities are much more longer than the contractual
maturities. It is thus a fundamental that roll-over rates of time deposits are
monitored on a continuous basis.
which are reviewed and revised (if deemed necessary) at least once a year, with
respect to the market conditions and changes in the Parent Bank’s and Şekerbank
(Kıbrıs) Ltd.’s strategies.
The Parent Bank’s and Şekerbank (Kıbrıs) Ltd.’s liqudity risk is also assessed
through the following “Risk Limits”:
The stickiness of the deposits are analysed in 2 separate ways:
-
-
With regards to the time deposits: the objective is to determine the roll-over
rates of those deposits.
With regards to the sight deposits: the objective is to determine the overall
volatiliy in those deposits in order to further determine both the “core” and
“volatile” sections as part of those deposits.
Both the time and sight deposits are also analysed based on currency types as well
as such sub-classes as savings deposits and commercial deposits.
As an indicator of the Parent Bank’s liquidity, the concentration in the Parent Bank’s
deposit structure as well as the breakdowns by retail/commercial deposits and by
Turkish Lira/foreign currency deposits are all monitored.
As an indicator of the market liquidity, the spread between O/N repo rates and the
average of those deposit rates of the first 10 savings banks (classified by their asset
size) is monitored.
d) Information on liquidity management on the basis of currencies constituting a
minimum of five percent of the Parent Bank’s total liabilities:
In order to measure and monitor the impact of the liquidity risk, the Parent Bank
uses cash flow gap analyses indicating both current and future transactions. In
these analyses, it is evaluated for how long the mismatches in the maturities of
assets, liabilities and interest bearing off balance sheet items take, with respect to
the maturity buckets.
In cash flow gap analyses:
-
-
-
Aggregate, Turkish Lira and foreign currency items are tabulated seperately.
Calculation for currency items that exceed 5 % of the Parent Bank’s total
assets (USD, EUR, etc. items) are done seperately.
Currency items that do not exceed 5 % of the Parent Bank’s total assets are
aggregated with the Eur items.
e) Information on liquidity risk mitigation techniques:
The Parent Bank and Şekerbank (Kıbrıs) Ltd., while monitoring its liquity position,
thoroughly oversee its compliance with the regulatory liquidity coverage ratios.
The Parent Bank’s and Şekerbank (Kıbrıs) Ltd.’s Boards of Directors approved these
regulatory limits as “Risk Limits” to be complied with and additionally set “Key Risk
Indicators”.
In addition to legal liquidity coverage ratios related with the liquidity risk, the
Parent Bank’s and Şekerbank (Kıbrıs) Ltd.’s Boards of Directors has approved
“Risk Limits” associated with the net worth and set the limits for allowed possible
liquidity mistmatch as percentage to the net worth for the certain maturity
buckets. The compliance with these limits are monitored on a regular basis; all of
Liquidity Risk
Cash Loans with maturities longer than 1 year (as per cash flows) / Capital
Time Deposits higher than 1 million TL / Total time deposits
In addition to these, the Parent Bank applies liquidity risk mitigation techniques,
among which are opting for loans with a regular cash flow structure on the loan
side; opting for a “granular” deposit base on the deposit side; and diversifying the
sources of funding by regularly executing the Parent Bank’s TL bond issues and
obtaining long-term finance resources from the financial institutions (Covered
Bonds, syndications, and other).
f) Information on the use of stress tests:
In terms of liquidity stress testing, the Parent Bank opts for a “reverse stress
testing” procedure, in order to measure the risks arising from both the Parent
Bank’s liquidity and the market liquidity. The use of such “reverse stress testing”
enables the Bank to determine the adverse conditions under which it might
breach the liquidity coverage ratios. Initially, it is simulated at which levels the
liquidity coverage ratios will approximately be for the next 3-year horizon. Then,
the liquidity gaps pertaining to those ratios are compared to the liquidity gaps
under which the Parent Bank might breach the said ratios and ALCO decides on
the actions to be taken for the existing liquidity gaps based on the results of such
simulations.
g) General information on urgent and unexpected liquidity situation plans:
The Parent Bank’s O/N repo limits in Central Bank and Istanbul Stock Exchange
as well as unutilised limits are also regularly monitored. As a precaution for a
worst case scenario such as the withdrawal of the total of demand deposits,
it is a principle that the Parent Bank maintains an unutilised limit equal to the
outstanding amount of its demand deposits. Within this scope, the ALCO sets the
alternative liquidity strategies with regards to the current market environment.
Consolidated Liquidity Coverage Ratio:
Liquidity coverage ratio is calculated by comparing the “high quality liquid assets”
of the Bank to the net cash outflow in the coming one month period, in line with
the “Regulation on the Calculation of Banks’ Liquidity Coverage Ratios” issued by
the Banking Regulation and Supervision Agency of Turkey.
Hence, these ratios are effected by the levels of a bank’s liquid assets which can be
liquidified easily and the cash in-flows as well as the cash out-flows arising from a
bank’s assets, liabilities and also off balance sheet items.
The Parent Bank’s “high quality liquid assets” comprise of cash and the balance
sheet items held within the Central Bank as well as securities issued by the Turkish
Treasury, which are not subject to repurchase agreements or not pledged as
collateral.
207
ŞEKERBANK T.A.Ş.
The major funding source for the Parent Bank is the deposits. In addition to the
deposits, the other significant sources of funding include funds received through
REPO transactions, issued securities, long-term recources obatined from the
financial institutions (Covered Bonds, syndications, and other).
Prior Period
Total Unweighted
Value (Average) (*)
Total Weighted
Value (Average) (*)
TRL+FC
TRL+FC
FC
2,843,593
2
FC
1,777,443
Retail deposits and deposits from small business
customers, of which:
3,538,110
693,663
1,405,860
204,840
70,293
4
4,888,230
2,132,250
488,823
213,225
4,146,996
1,790,910
2,816,865
1,224,094
287,316
127,476
71,829
31,869
3,186,302
1,452,478
2,011,349
980,611
673,378
210,956
733,687
211,614
5
5
10,995,320
4,334,990
843,730
354,258
5,116,040
1,584,820
255,802
79,241
9
5,879,280
2,750,170
587,928
275,017
10
11
Outflows related to derivative exposures and
other collateral requirements
12
Outflows related to restructured financial
instruments
13
Payment commitments and other off-balance
sheet commitments granted for debts to
financial markets
14
Other revocable off-balance sheet commitments
and contractual obligations
8
Unsecured funding
4,800,696
1,830,592
3,290,638
1,371,171
6
285,056
152,384
71,264
38,096
7
3,611,897
1,275,201
2,305,172
929,665
8
Unsecured funding
903,743
403,007
914,202
403,410
2,427
-
3,316,349
977,118
3,316,349
977,118
3,265,821
931,107
3,265,821
931,107
15
Other irrevocable or conditionally revocable offbalance sheet obligations
4,517
-
4,517
-
16
TOTAL CASH OUTFLOWS
9
10
11
12
Outflows related to derivative exposures and
other collateral requirements
Outflows related to restructured financial
instruments
13
Payment commitments and other off-balance
sheet commitments granted for debts to
financial markets
46,011
46,011
46,011
46,011
14
Other revocable off-balance sheet commitments
and contractual obligations
108,820
88,640
5,441
4,432
Other irrevocable or conditionally revocable offbalance sheet obligations
4,041,656
16
TOTAL CASH OUTFLOWS
468,584
580,581
91,996
8,039,166
2,798,975
CASH INFLOWS
Secured receivables
87
-
3,262,888
1,323,778
3,262,888
1,323,778
3,151,773
1,302,086
3,151,773
1,302,086
89,423
-
89,423
-
21,692
21,692
21,692
21,692
99,780
1,476,480
4,989
73,824
3,781,244
415,196
512,898
79,603
7,291,390
2,984,817
CASH INFLOWS
15
17
283,518
8,985,030
7
1,743,834
4,096,800
2
4
3,024,253
Stable deposits
Stable deposits
FC
3
6
3
TRL+FC
FC
CASH OUTFLOW
Retail deposits and deposits from small business
customers, of which:
TRL+FC
CASH OUTFLOW
1
Total Weighted
Value (Average) (*)
1
Current Period
Total Unweighted
Value (Average) (*)
5,866
-
2,933
-
18
1,134,310
97,710
753,757
124,303
19
Other cash inflows
3,208,265
3,044,032
3,208,265
3,044,032
20
TOTAL CASH INFLOWS
4,348,441
3,141,742
3,964,955
3,168,335
21
TOTAL HQLA
2,843,593
1,777,443
22
4,074,209
699,743
23
69.79
254.01
simple averages.
17
Secured receivables
80,400
-
40,200
-
18
901,102
100,586
633,682
175,502
2,790,016
19
Other cash inflows
3,132,872
3,132,872
2,790,016
20
TOTAL CASH INFLOWS
4,114,374 2,890,602 3,806,754
2,965,518
21
TOTAL HQLA
3,024,253
1,743,834
22
3,484,638
746,204
23
86.79
233.69
(*)
simple averages.
The FC liquidity coverage ratio calculated from the average value for the last
quarter of 2014 was 233.69, TRL + FC liquidity coverage ratio was 86.79 and the
same rates in the last quarter of 2015 are 254.01 and 69.79, respectively.
The lowest and highest Liquidity Coverage Ratios for 2015 is given in the following
table.
(*)
October
November
December
Current Period
TRL+FC
FC
70.70
255.57
66.54
258.31
72.21
248.58
208
ŞEKERBANK T.A.Ş.
Presentation of assets and liabilities according to their remaining maturities:
Demand
Up to 1
Month
1-3
Months
3-12
Months
1-5
Years
5 Years
and Over Undistributed (*)
809,343
2,028,212
-
-
-
-
-
2,837,555
39,368
60,420
128
822
-
-
-
100,738
671
35,838
14,519
41,102
64,695
6,694
-
163,519
-
7,000
-
-
-
-
-
7,000
7,396
-
-
6,266
836,763
874,548
-
1,724,973
Loans (**) (***)
71,911
989,473
5,248,190
2,388,299
6,653,052
1,471,644
-
16,822,569
-
-
-
3,301
885,059
383,373
-
1,271,733
271,330
390,683
115,292
207,354
210,283
7,765
1,547,960
2,750,667
1,200,019
3,511,626
5,378,129
2,647,144
8,649,852
2,744,024
Total
Current Period
Assets
Cash and Balances with the Central Bank of Turkey
Other Assets
Total Assets
1,547,960 25,678,754
Liabilities
Bank Deposits
440,625
951,816
69,434
5,431
-
-
-
1,467,306
Other Deposits
1,670,826
7,574,104
2,973,952
1,190,902
16,447
7
-
13,426,238
70
418,115
231,814
935,564
1,030,836
1,119,055
-
3,735,454
-
2,054,034
6,379
-
-
-
-
2,060,413
1,310,579
Securities Issued
-
-
332,559
278,930
699,090
-
-
Sundry Creditors
237,894
95,290
4,806
-
-
-
11,414
349,404
144,183
166,136
187,511
55,937
148,252
12,896
2,614,445
3,329,360
2,493,598
11,259,495
3,806,455
2,466,764
1,894,625
1,131,958
(1,293,579) (7,747,869)
1,571,674
180,380
6,755,227
1,612,066
(1,077,899)
-
(13,223)
33,482
30,742
-
-
57,191
6,579,092
Other Liabilities
Total Liabilities
Liquidity Gap
2,625,859 25,678,754
-
6,190
-
3,385,360
2,110,137
282,663
800,932
-
-
-
3,379,170
2,123,360
249,181
770,190
-
-
6,521,901
2,021,982
152,092
442,214
2,111,848
976,855
81,184
-
5,786,175
696,814
3,007,008
4,726,027
2,393,508
7,507,095
2,538,319
1,403,954
22,272,725
2,299,105
9,989,911
3,558,377
1,997,723
1,066,131
883,399
2,478,079
22,272,725
(1,602,291) (6,982,903)
1,167,650
395,785
6,440,964
1,654,920
(1,074,125)
-
168,655
10,564
60,669
-
-
64,942
6,582,231
Non-Cash Loans
Prior Period
Total Assets
Total Liabilities
Liquidity Gap
-
(174,946)
-
3,398,263
1,992,619
366,518
824,831
-
-
-
3,573,209
1,823,964
355,954
764,162
-
-
6,517,289
1,982,502
150,359
562,723
2,015,288
859,937
47,661
-
5,618,470
Non-Cash Loans
(*)
Those assets such as tangible assets, investments in subsidiaries and associates, office supply inventory, prepaid expenses and non-performing loans, which are necessary for continuation of
banking activities, unavailable for conversion into cash in a short term and other asset qualified accounts and equity accounts are classified under undistributed.
(**)
Overdraft Loans are presented in 1-3 months period.
(***)
The Group has classified Loans and Receivables amount to TRL 382,730 Thousand, under financial assets at fair value through profit and loss in the current period ( 31 December 2014 –TRL
348,713 Thousand). Non performing loans classified as “Financial assets at fair value through profit and loss”amount to TRL 6,704 Thousand (31 December 2014 – TRL 6,325 Thousand) and Specific
provision amount to TRL 2,131 Thousand (31 December 2014 – TRL 2,840 Thousand).
209
ŞEKERBANK T.A.Ş.
Analysis of financial liabilities by remaining contractual maturities:
Demand
Up to 1
Month
1-3
Months
3-12
Months
1-5
Years
Over 5
Years
Current Period
Liabilities
Bank deposits
Other deposits
Securities Issued
Total Liabilities
440,625
1,670,826
70
2,111,521
955,424
7,579,721
424,295
2,056,001
11,015,441
69,695
3,025,275
239,675
6,446
383,331
3,724,422
5,447
1,217,704
946,184
382,450
2,551,785
18,426
1,151,063
808,171
1,977,660
40
1,414,611
1,414,651
(3,885)
1,467,306
(85,754) 13,426,238
(440,444)
3,735,454
(2,034)
2,060,413
(263,373)
1,310,579
(795,490) 21,999,990
Prior Period
Liabilities
Bank deposits
Other deposits
Securities Issued
Total Liabilities
277,723
1,555,284
22
1,833,029
624,331
7,214,349
215,645
1,496,918
180,935
9,732,178
64,528
2,689,679
238,546
423,511
3,416,264
3,150
1,245,961
707,947
49,596
2,006,654
19,626
495,970
488,414
1,004,010
1,132,105
1,132,105
(689)
(74,407)
(318,134)
(636)
(23,523)
(417,389)
Adjustments
Total
969,043
12,650,492
2,472,101
1,496,282
1,118,933
18,706,851
Analysis of contractual expiry by maturity of the Group’s derivative financial instruments:
Current Period
Net Settled
Currency swaps
Interest rate swaps
Gross settled
Currency swaps
Interest rate swaps
Total
Prior Period
Net Settled
Currency swaps
Interest rate swaps
Gross settled
Currency swaps
Interest rate swaps
Total
Up to 1 Month
1-3 Months
3-12 Months
1-5 Years
Over 5 Years
Total
-
-
-
-
-
-
251,591
2,773,306
3,024,897
42,810
1,815,236
1,858,046
5,892
129,252
135,144
210,230
210,230
-
300,293
4,928,024
5,228,317
-
-
-
-
-
-
395,044
2,826,895
3,221,939
9,522
1,864,321
1,873,843
2,621
320,362
3,517
326,500
262,384
262,384
-
407,187
5,273,962
3,517
5,684,666
210
ŞEKERBANK T.A.Ş.
IX. Explanations Related to Consolidated Securitization Position Risk
XI. Explanations Related to Consolidated Risk Management Objective and Policies
None.
X. Explanations Related to Credit Risk Mitigation Techniques
1.
Credit risk mitigation techniques:
The Parent Bank uses financial collaterals (Government securities, cash, deposit,
gold, stock pledge), guarantees and credit derivatives as risk mitigators.
The financial collaterals are revaluated on a daily basis. The Group pays attention
to legality of collaterals, monitoring the fair value of collaterals and insurance
agreements related with the collaterals in the name of the Group.
While “simple approach” is taken into account for banking book items, the
Parent Bank uses “comprehensive approach” for trading book items in the credit
mitigation process.
Collaterals which are grouped according to asset types (*):
Risk Types
Amount (**)
1 Contingent and Non-Contingent Claims on
Sovereigns
5,659,284
Regional Governments and Local Authorities
76,564
Administrative Units and Non-Commercial
Enterprises
10,663
6 Contingent and Non-Contingent Claims on Banks
and Capital Market Intermediary
375,796
Corporate Receivables
11,684,451
8 Contingent and Non-Contingent Claims Included
in the Regulatory Retail Portfolios
6,891,795
9 Contingent and Non-Contingent Claims Secured
by Mortgage
5,731,600
10 Past Due Loans
816,682
11 Higher-Risk Categories Defined by Agency
1,172,174
12 Collateralized Mortgage Marketable Securities
13 Securitization Exposures
14 Short-Term Claims on Banks and Corporate
15 Undertakings for Collective Investments in
16 Other Claims
1,747,887
Total
34,166,896
Other/ Guarantees
Financial
Physical and Credit
Collaterals Collaterals Derivatives
-
-
-
-
-
-
939
-
-
-
-
-
-
-
-
-
-
-
•
•
•
•
123,501
-
-
•
77,141
-
-
-
-
-
201,581
-
-
According to the Basel II, financial collaterals, guarantees and credit derivatives are taken into account
in capital adequacy ratio calculation, while the other/physical collaterals (sureties, allowance alienation,
vehicle and other pledges) are not considered. Mortgage loans are shown in the 9th line of table.
(**)
Amount consists of “total credit risk amount before credit conversion rates”.
(*)
Risk Management System in the Group is considered as a whole and is
structured in all organisational and management processes as well as
Information Systems and risk awareness is enhanced.
2. Risk Management System is built-in into all activities of the Group and it is
the responsibility of all the Group’s personnel to enhance Risk Management
System.
3. Risk Management System also covers the Parent Bank’s investments and
associates, as well as its subsidiaries, on a consolidated basis.
4. The objectives to be achieved through the Risk Management System and
internal capital adequacy assessment process are as stated:
• Protection of the Group’s solid financial condition,
• Determination of the Group’s risk appetite in line with its strategies and
activities,
• Determination of the Group’s capital level in line with its risk appetite,
• Adoption of risk-based approaches:
- Across business units,
- In structuring of portfolios,
- In setting of authorizations,
- In pricing.
• Enhancement of Performance Management System,
• Enhancement of the principles of corporate governance and transparency.
The Structure and Scope of Risk Management System
The Risk Management System covers of all the decision-making, executing
and monitoring, controlling and auditing bodies of the Group and includes the
following:
The Board of Directors
Senior Management
Internal Systems Units
Committees established by the Board of Directors within Risk Management
System
Committees established by Senior Management within Risk Management
System
The Goals of Risk Management System
1.
2.
3.
4.
5.
6.
Enhancement of enterprise risk management culture, by means of
establishment of sound strategies and policies,
Establishment and sound management of risk limits and applications,
Enhancement of asset structure,
Accurate fulfillment of obligations,
Determination of the Group’s risk appetite in line with the Group’s business
strategies and activities,
Determination of the Group’s capital level in line with its risk appetite.
211
ŞEKERBANK T.A.Ş.
The Basic Principles of Risk Management System
1.
2.
3.
4.
5.
6.
7.
8.
The activities within the Group’s Risk Management System are regulated and
supervised in a sound manner.
Risk Management strategies, policies, risk limits and applications are
established in line with the Group’s business strategies and activities as well as
the requirements within a changing environment.
In order to prevent errors and irregularities, fraud, conflicts of interest,
manipulation of information and abuse of resources, segregation of authorities
is formulated for these.
Authorities and responsibilities of all the units, committees and personnel are
defined precisely and in written form.
Information Systems of the Group are structured in line with the Group’s
business strategies and activities and the qualifications and the complexity of
products to be newly introduced.
Information Systems of the Group are structured so that identifying,
measuring, monitoring, controlling and reporting of risks to which the Group
may be exposed, due to its strategies and activities are executed in an effective
and timely manner.
Within the scope of the organizational structure of the Group and in
accordance with principles related to security of information, vertical and
horizontal flows of information are established.
All the managers and related personnel are informed precisely, concerning the
Group’s strategies and objectives, policies, risk limits and applications.
The Tools of Risk Management System
2. Establishment of Segregation of duties and decision-making system,
3. Establishment of sound communication channels (financial / managerial
reporting lines),
4. Establishment of sound process management,
5. Establishment of sound internal controls,
6. Structuring of Emergency and Business Continuity Planning.
XII. Explanations Related to Consolidated Leverage Ratio
a) Information on subjects that causes difference in leverage ratio between
current and prior periods
The Group’s consolidated leverage ratio calculated according to “Regulation on
Measurement and Assessment of Leverage Ratios of Banks” is 7.24%
(31 December 2014 – 7.83%). Change in the leverage ratio is mainly due to the
increase in the amount of on balance sheet items. Regulation has set the minimum
leverage ratio as 3 %.
b) Comparison table of total assets and total risk amounts in the financial
statements prepared in accordance with TAS :
Current Period (**) Prior Period (**)
Total assets in the consolidated financial statements prepared in
accordance with TAS (*)
Differences between the total assets in the consolidated financial
statements prepared in accordance with TAS and the total assets in
the consolidated financial statements prepared in accordance with
Communique on Preparation of Consolidated Financial Statements
of the Banks
Differences between the balances of derivative financial instruments
and the credit derivatives in the consolidated financial statements
prepared in accordance with the Communique on Preparation
of Consolidated Financial Statements of the Banks and their risk
exposures
Differences between the balances of securities financing transactions
in the consolidated financial statements prepared in accordance
with the Communique on Preparation of Consolidated Financial
Statements of the Banks and their risk exposures
Differences between off- balance sheet itmes in the consolidated
financial statements prepared in accordance with the Communique
on Preparation of Consolidated Financial Statements of the Banks
and their risk exposures
Other differences in the consolidated financial statements prepared
in accordance with the Communique on Preparation of Consolidated
Financial Statements of the Banks and their risk exposures
Total Risk
23,485,790
22,272,725
-
-
(24,569)
(12,813)
51,054
22,929
3,278,607
3,078,655
32,945,565
29,239,081
(*)
The consolidated financial statements as of 30 June 2015 prepared in accordance with the sixth
paragraph of the Article 5 in the Communique on Preparation of Consolidated Financial Statements of
the Banks.
(**)
The arithmetic average of the last 3 months in the related periods
c) Disclosure of Leverage Ratio template
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
(*)
On-balance sheet assets
Current Period (*)
On-balance sheet items (excluding derivative financial
instruments and credit derivatives but including collateral)
25,017,500
(Assets deducted in determining Tier 1 capital)
(224,240)
Total on-balance sheet risks (sum of lines 1 and 2)
24,793,260
Derivative financial instruments and credit derivatives
Replacement cost associated with all derivative instruments and
credit derivatives
127,637
Add-on amounts for PFE associated with all derivative
99,474
Total risks of derivative financial instruments and credit derivatives
(sum of lines 4 to 5)
227,111
Securities or commodity financing transactions (SCFT)
Risks from SCFT assets
Risks from brokerage activities related exposures
51,486
Total risks related with securities or commodity financing
transactions (sum of lines 7 to 8)
51,486
Other off-balance sheet transactions
Gross notional amounts of off-balance sheet transactions
8,147,120
(Adjustments for conversion to credit equivalent amounts)
(273,412)
Total risks of off-balance sheet items (sum of lines 10 and 11)
7,873,708
Capital and total risks
Tier 1 capital
2,384,346
Total risks (sum of lines 3, 6, 9 and 12)
32,945,565
Leverage ratio
Leverage ratio
7.24
Amounts in the table are three-month average amounts.
Prior Period (*)
21,498,571
(96,980)
21,401,591
141,406
102,241
243,647
41,013
41,013
7,781,100
(228,270)
7,552,830
2,288,942
29,239,081
7.83
212
ŞEKERBANK T.A.Ş.
XIII. Explanations Related to Presentation of Financial Assets and Liabilities at Fair
Value
Current period marketable securities are comprised of interest-bearing assets
held-to-maturity and interest-bearing assets available-for-sale. The fair value
of the held to maturity assets is determined by market prices or quoted market
prices of other marketable securities which are subject to redemption with same
characteristics in terms of interest, maturity and other similar conditions when
market prices cannot be determined.
The book value of demand deposits, money market placements with floating
interest rate and overnight deposits represents their fair values due to their
short-term nature. The estimated fair value of deposits with fixed interest rate,
funds provided from other financial institutions and marketable securities issued is
calculated by determining their cash flows discounted by the current interest rates
used for other liabilities with similar characteristics and maturity structure. The
fair value of loans is calculated by determining the cash flows discounted by the
current interest rates used for receivables with similar characteristics and maturity
structure. The book value of the sundry creditors reflects their fair values since
they are short-term.
The market values of the items shown in the table are calculated by combining
the accrued interest and the market value of principal amounts, based on time to
maturity for fixed rate items and time to repricing day for floating rate items. The
market values of interest rate insensitive items are calculated with respect to their
book values.
The table below shows the book value and the fair value of the financial assets and
liabilities which cannot be shown with their fair value in the financial statements of
the Group.
Current Period
Financial Assets
Banks
Loans
Bank Deposits
Other Deposits
Securities Issued
Sundry Creditors
Book Value
Fair Value
7,000
100,738
1,724,973
1,271,733
16,822,569
7,000
92,690
1,724,973
1,267,455
16,847,670
1,467,306
13,426,238
3,735,454
148,055
1310579
349,404
1,466,165
13,412,838
3,944,987
148,055
1,348,302
349,404
Prior Period
Financial Assets
Banks
Loans
Bank Deposits
Other Deposits
Securities Issued
Sundry Creditors
Book Value
Fair Value
8,000
146,182
1,056,757
1,369,509
14,817,478
8,000
146,177
1,056,757
1,414,427
15,100,578
969,043
12,650,492
2,472,101
7,166
1,118,933
388,884
969,059
12,631,785
2,559,680
7,166
1,167,891
388,884
TFRS 7 "Financial Instruments: Disclosures" standard requires those items
which are recorded in the balance sheet with their fair values to be expressed in
footnotes in a sequenced classification. Accordingly, such financial instruments
are classified in three gradual groups as reflecting importance of the data used
for fair value measurement. In the first group, there are financial instruments
whose fair values were determined according to prices of identical assets or
liabilities recorded in active markets; in the second group, there are financial
instruments whose fair values were determined according to data of directly or
indirectly observable markets; in the third group there are financial instruments
whose fair values are not determined as based on observable market data. These
financial instruments which are recorded in the balance sheet of the Bank with
their fair values are expressed below in graduation according to afore mentioned
classification principles.
Level 1
Level 2
Level 3
-
Current Period
Financial Assets
26,453
-
-
137,066
-
Loans
-
-
382,730
1,717,577
7,396
-
-
57,026
-
-
Prior Period
Financial Assets
20,820
-
-
150,008
-
Loans
-
-
348,713
1,049,873
6,884
-
-
59,202
-
XIV. Explanations Related to Transactions Made on Behalf of Others and
Transactions Based On Trust
The Parent Bank performs buying and selling transactions on behalf of customers
but does not provide custody administration and consultancy services.
There are no transactions made with other financial institutions within trust
transaction contract and direct financial services provided within this scope.
213
ŞEKERBANK T.A.Ş.
SECTION FIVE
EXPLANATIONS AND DISCLOSURES ON THE
- FC Deposits, precious metal deposit and FC participate accounts and FC accumulated
accounts and FC participate accounts longer than one year (including one year) are 9%.
I. Explanations Related to the Consolidated Assets
1. a) Information on Cash and Balances with the Central Bank of Turkey:
Balances with the Central Bank
of Turkey
Other
Total
Current Period
TRL
FC
118,674
56,825
442,245
560,919
2,219,807
4
2,276,636
Prior Period
TRL
FC
126,586
69,297
133,908 2,015,048
4
260,494 2,084,349
b) Information related to the account of the Central Bank of Turkey:
Unrestricted demand deposit
Unrestricted time deposit
Restricted time deposit
Total
•
•
Current Period
TRL
FC
442,245 2,052,122
29,184
138,501
442,245 2,219,807
Prior Period
TRL
FC
133,908 2,015,048
133,908 2,015,048
The reserve deposits include TRL 1,834,612 Thousand of FC unrestricted demand deposit
(31 December 2014 – TRL 1,818,106 Thousand) and TRL 436,837 Thousand of the TRL
unrestricted demand deposit (31 December 2014 – TRL 122,537 Thousand). TRL unrestricted
demand deposit includes the reserve deposit amount that is held in the Central Bank of
the Turkish Republic on average. The Central Bank of Turkish Republic has begun to apply
interest on TRL and USD reserve deposits as of November 2014 and May 2015, respectivly.
CBRT amounts include the funds of Şekerbank (Kıbrıs) Ltd. held with the Central Bank of
Turkish Republic of Northern Cyprus. Central Bank of Turkish Republic of Northern Cyprus
amount is TRL 41,849 Thousand and it includes TRL 14,544 Thousand reserve deposit
amount (31 December 2014-TRL 30,563 Thousand Central Bank amount and it includes TRL
11,611 Thousand reserve deposit amount).
Interest rates applied by the Central Bank of Turkish Republic of Northern Cyprus to reserve
- Deposits up to three month (including three month) are 8%,
- Deposits up to six month (including six month) are 7%,
- Deposits up to one year(including one year) are 6%,
-Deposits longer than one year are 5%,
-Other TRL liabilities except deposits (including one year) are 8%.
•
Starting from 13.03.2015, reserve deposit ratios for TRL deposits are regulated as follows:
- Unrestricted, TRL deposit call accounts and special current accounts are 11.5%,
- Deposits up to one month (including one month) are 11.5%,
- Deposits up to three month (including three month) are 11.5%,
- Deposits up to six month (including six month) are 8.5%
- Deposits up to one year are 6.5%,
- Deposits/participation accounts with 1-year and longer maturity and cumulative deposits/
participation accounts are 5%,
- Other TRL liabilities up to one year (including one year) are 11.5%,
- Other liabilities up to 3-year maturity (including 3-year) are 8%
- Other liabilities longer than 3-year maturity are 5%.
•
Starting from 24.05.2013, reserve deposit ratios for the FC deposits and precious metal
- Unrestricted FC deposit call accounts, special current accounts and precious metal deposit
accounts and deposits up to one month, up to three month, up to six month, up to one year FC
deposits, FC participate accounts and precious metal deposits are 13%,
Starting from 13.03.2015, reserve deposit ratios for FC other liabilities are regulated as follows:
Starting from 09.10.2015, reserve deposit ratios for FC other liabilities that occur after
28.08.2015 are regulated as follows:
2. Information on financial assets at fair value through profit and loss (net):
i) Information on financial assets at fair value through profit and loss given as
collateral or blocked:
None (31 December 2014 – None.)
ii) Financial assets at fair value through profit and loss subject to repurchase
agreements: None (31 December 2014 - None).
Net book value of unrestricted financial assets at fair value through profit and loss
is TRL 26,453 Thousand (31 December 2014 – TRL 20,820 Thousand).
iii) Positive differences related to derivative financial assets held-for-trading:
Derivatives Held for Trading
Swap Transactions
Options
Other
Current Period
TRL
FC
1,226
92,910
42,542
69
319
-
Prior Period
TRL
FC
712
109,139
38,960
49
1,148
-
Total
92,979
109,188
44,087
40,820
iv) Loans at fair value through profit and loss
Opening Balance
Additions (+)
Change in Interest Rates (*)
Change in Credit Risk (**)
Impairment Provision
Collections (-)
Net Balance
Current Period
348,713
111,784
(9,287)
(1,164)
(1,485)
(65,831)
382,730
Prior Period
230,235
155,313
11,091
9,926
(605)
(57,247)
348,713
(*)
Change in interest rates shows the effect of TRLIBOR (basic interest rate) difference on loans
at fair value through profit and loss between two periods.
(**)
Change in credit risk shows the effect of the difference of basic interest rates and similar
loans interest rates on loans at fair value through profit and loss.
214
ŞEKERBANK T.A.Ş.
As of 31 December 2015, TRL 377,093 Thousand (31 December 2014 - TRL 331,892
Thousand) of loans which are classified as Financial Assets at Fair Value Through
Profit and Loss using effective interest rate have fair value amount of TRL 382,730
a.2) Financial assets available-for-sale subject to repurchase agreements:
3. a) Information on banks:
Government bonds
Current Period
Banks
Domestic
Prior Period
TRL
FC
TRL
FC
27,847
72,891
34,799
-
-
-
-
Other public sector debt securities
-
-
-
-
-
-
-
-
-
-
-
-
1,119,230
-
738,261
-
34,719
49,481
48,191
80
61,902
-
-
-
-
27,847
72,891
34,799
111,383
Restricted Amount
Prior
Period
28,620
46,325
-
-
USA and Canada
9,921
9,858
1,391
1,110
OECD Countries (*)
6,631
3,595
336
-
(*)
-
Treasury bills
-
Current
Period
Total
FC
-
Prior
Period
Off-shore banking regions
738,261
-
Current
Period
Other
-
-
3. b) Information on foreign bank accounts:
1,119,230
24,700
Unrestricted Amount
TRL
111,383
20
Branches and head office abroad
Prior Period
FC
Bank bonds and
bank guaranteed bonds
27,827
Foreign
Total
Current Period
TRL
-
-
-
-
1,312
1,094
-
-
46,484
60,872
1,727
1,110
Other
Total
Net book value of unrestricted financial assets available-for-sale is TRL 537,359
b) Information on financial assets available for sale portfolio:
Current Period
Prior Period
1,748,258
1,052,918
1,748,258
1,052,918
Debt securities
Share certificates
-
10,423
9,529
1,045
663
9,378
8,866
Impairment provision (-)
Total
OECD countries other than European Union countries, USA and Canada.
-
(33,708)
(5,690)
1,724,973
1,056,757
4. Information on financial assets available-for-sale:
5. Information on loans:
a.1) Information on financial assets available-for-sale given as collateral or blocked:
a) Information on all types of loans and advances given to shareholders and
employees of the Group:
Current Period
Share certificates
Bonds, Treasury bills and
similar investment securities
Other
Total
Prior Period
TP
YP
TP
YP
-
-
-
-
68,384
-
-
-
-
-
-
-
68,384
-
-
-
Current Period
Cash
Loans
Direct loans granted to shareholders
Corporate shareholders
Real person shareholders
Indirect loans granted to shareholders
Loans granted to employees
Total
Prior Period
Non-Cash
Loans
Cash
Loans
Non-Cash
Loans
325
-
-
-
-
-
-
-
-
-
-
47,232 367,395
42,241
325
413,158
31,498
-
29,784
-
444,981
47,232
397,179
42,241
215
ŞEKERBANK T.A.Ş.
b) Information on the first and second group loans and other receivables including
restructured or rescheduled loans:
Standard loans and
other receivables
Cash loans (*)
Loans
and other
receivables
(Total)
Loans and other receivable
Loans
and other
Receivables
(Total)
Amendments
on Conditions
of Contract
Amendments
related to the
extension of
the payment
plan Other
Current Period
The Time extended via the
Amendment on Payment Plan
Amendments
on Conditions
of Contract
Amendments
related to the
extension of
the payment
plan Other
0-6 Months
30,636
38,242
441,020
6 Months- 12 Months
67,408
18,244
58,818
32,374
1-2 Years
15,978
113,240
9,392
52,093
2-5 Years
276,147
479,482
15,308
452,879
-
9,433
147
15,749
5 Years and More
335,122
-
1,306,602
639,732
-
78,494
-
-
11,381
-
-
Export loans
1,847,037
15,438
-
4,182
-
-
Import loans
-
-
-
-
-
-
12,476
-
-
797
387
-
1,413,876
687
-
99,129
2,798
-
274,556
-
-
12,884
-
-
9,619,847
318,997
-
1,178,229
636,547
-
Specialized loans
2,151,821
55,047
-
117,860
18,909
-
Other receivables
-
-
-
-
-
-
15,398,107
390,169
-
1,424,462
658,641
-
Loans given to
financial sector
Consumer loans
Credit cards
Other
Total
The Group has classified Loans and Receivables amount to TRL 382,730 Thousand, under
financial assets at fair value through profit and loss in the current period.
Current Period
Number of Amendments Related
to the Extension of the Payment
Plan
Extended for 1 or 2 times
Extended for 3,4 or 5 times
Extended for more than 5 times
Current Period
Short-term loans and
other receivables
7,093,646
15,815
249,373
14,807
6,263,105
15,403
218,863
7,270
Specialized loans
830,541
412
30,510
7,537
Other receivables
-
-
-
-
7,914,292
374,354
516,448
643,834
6,648,059
319,719
448,007
632,462
Specialized loans
1,266,233
54,635
68,441
11,372
Other receivables
-
-
-
-
15,007,938
390,169
765,821
658,641
Prior Period
Loans
Loans
Standard and other Standard and other
loans and receivable loans and receivable
other under close
other under close
receivables monitoring receivables monitoring
384,449
658,641
520,135
593,733
683
-
1,011
2
5,037
-
3,539
-
Standard Loans and Other Loans and Other Receivables
Receivables
Under Follow-Up
Loans Amendments
Loans Amendments
and Other on Conditions
and Other on Conditions
of Contract Receivables (*)
of Contract
Receivables (*)
Medium and
Long-term loans
(*)
40,640
c) Loans and other receivables according to their maturity structure:
13,246,286
Corporation loans
Prior Period
Loans
Loans
Standard and other Standard and other
loans and receivable loans and receivable
other under close
other under close
receivables monitoring receivables monitoring
Total
(*)
The Group has classified Loans and Receivables amount to TRL 382,730 Thousand, under
financial assets at fair value through profit and loss in the current period.
216
ŞEKERBANK T.A.Ş.
d) Information on consumer loans, individual credit cards, personnel loans and
credit cards given to personnel:
Consumer Loans-TRL
Housing Loans
Car Loans
Other
Consumer Loans –Indexed to FC
Housing Loans
Car Loans
Other
Consumer Loans-FC
Housing Loans
Car Loans
Other
Individual Credit Cards-TRL
With Instalments
Without Instalments
Individual Credit Cards-FC
With Instalments
Without Instalments
Personnel Loans-TRL
Housing Loans
Car Loans
Other
Personnel Loans- Indexed to FC
Housing Loans
Car Loans
Other
Personnel Loans-FC
Housing Loans
Car Loans
Other
Personnel Credit Cards-TRL
With Instalments
Without Instalments
Personnel Credit Cards-FC
With Instalments
Without Instalments
Overdraft Accounts-TRL(Real Person) (*)
Overdraft Accounts-FC (Real Person)
Total
Short Term
21,156
1,279
35
19,842
37,065
741
6,010
30,314
183,042
54,892
128,150
191
2
189
694
694
7,891
2,399
5,492
23
23
44,693
1,743
296,498
Medium and
Long Term
Total
1,777,316 1,798,472
674,699 675,978
26,840
26,875
1,075,304 1,095,146
473
473
1,782
1,782
1,782
1,782
12,371
49,436
9,809
10,550
628
6,638
1,461
31,775
473
473
14 183,056
14
54,906
128,150
191
2
189
19,770
20,464
8,088
8,088
67
67
11,615
12,309
7,891
2,399
5,492
23
23
44,693
1,743
1,811,253 2,107,751
(*)
As of 31 December 2015 overdraft accounts for real persons include TRL 3,120 Thousand of
personnel overdraft account.
e) Information on commercial loans with installments and corporate credit cards:
Short Term
Commercial loans with instalment facility-TRL
223,980
Business Loans
138
Car Loans
2,779
221,063
Other
Commercial loans with instalment facility Indexed to FC
29,938
Business Loans
Car Loans
834
29,104
Other
Commercial loans with instalment facility –FC
5,253
Business Loans
Car Loans
5,253
Other
Corporate Credit Cards-TRL
91,031
With Instalments
24,850
Without Instalments
66,181
Corporate Credit Cards-FC
13
With Instalments
Without Instalments
13
Overdraft Accounts-TRL(Legal Entity)
169,113
Overdraft Accounts-FC (Legal Entity)
Total
519,328
Medium and
Long Term
Total
3,318,625 3,542,605
24,878
25,016
125,302 128,081
3,140,288 3,361,351
28,157
28,157
618,532 648,470
4,269
4,269
21,986
22,820
592,277
621,381
361,770 367,023
361,770 367,023
91,031
24,850
66,181
13
13
169,113
4,298,927 4,818,255
f) Loans according to borrowers:
Public
Private
Total
Current Period
82,022
16,740,547
16,822,569
Prior Period
71,622
14,745,856
14,817,478
Current Period
16,802,751
19,818
16,822,569
Prior Period
14,805,905
11,573
14,817,478
g) Domestic and foreign loans:
Domestic loans
Foreign loans
Total
h) Loans granted to subsidiaries and associates: None.
217
ŞEKERBANK T.A.Ş.
i) Specific provisions provided against loans:
Specific Provisions (*)
j.2) The movement of non-performing loans:
Current Period
Prior Period
III. Group
21,931
19,641
Loans and receivables with
doubtful collectability
100,459
62,901
Uncollectible loans and
receivables
440,804
457,078
Additions (+)
563,194
539,620
Transfers from other categories of
non-performing loans (+)
Prior period end balance
Total
Thousand).
(*)
Transfers to other categories of
non-performing loans (-)
j) Information on non-performing loans (Net):
IV. Group:
Loans and
Loans and
receivables
loans and
collectability collectability receivables
Current period
(Gross amounts before the specific
reserves)
-
4,218
60,320
are restructured
-
-
-
receivables
-
4,218
60,320
Prior period
(Gross amounts before the specific
reserves)
-
5,070
39,839
are restructured
-
-
-
receivables
-
5,070
39,839
150,757
602,406
24,996
23,883
-
530,157
338,187
(338,187)
-
(43,256)
(83,911)
(125,060)
Write-offs (-)
(11)
(897)
(245,371)
-
-
(182,606)
(46,564)
Retail loans
V. Group
122,437
618,776
(530,157)
Credit cards
III. Group:
V. Group
Collections (-)
Corporate and commercial loans
j.1) Information on loans and other receivables included in non-performing loans
which are restructured or rescheduled:
IV. Group
Loans and
Loans and
receivables
loans and
receivables
Loans and receivables with
limited collectability
Current period end balance (*)
Specific provision (-) (*)
Net Balances on Balance Sheet
-
-
(11)
(897)
(16,201)
167,789
282,915
594,045
21,931
100,459
440,804
145,858
182,456
153,241
loss”amounts to TRL 6,704 Thousand and Specific provision amounts to TRL 2,131 Thousand in
the current period.
(*)
j.3) Information on non-performing loans and other receivables in foreign
currency: In the current period the Group has TRL 5,094 Thousand nonperforming foreign currency loan and specific provision for these loans amounting
to TRL 5,094 Thousand (31 December 2014- TRL 4,062 Thousand non-performing
loan and TRL 4,062 Thousand specific provision).
218
ŞEKERBANK T.A.Ş.
j.4) Information regarding gross and net amounts of non-performing loans with
respect to user groups:
III. Group
IV. Group
l) Explanations on write-off policy:
V. Group
Loans and
Loans and
receivables
loans and
receivables
Current Period (Net) (*)
Entities (Gross)
Entities (Net)
Banks (Gross)
167,789
282,915
594,045
(21,931)
(100,459)
(440,804)
145,858
182,456
153,241
-
-
-
-
-
-
Banks (Net)
-
-
-
-
-
-
-
-
-
-
-
-
Prior Period (Net) (*)
Entities (Gross)
Entities (Net)
Banks (Gross)
The Parent Bank sold uncollectable non-performing commercial and consumer
loans including credit cards amounting to TRL 209,057 Thousand on 30 March
2015, for TRL 2,200 Thousand to Güven Varlık Yönetim A.Ş., for TRL 7,200 Thousand
to Destek Varlık Yönetim A.Ş. and for TRL 5,700 Thousand to Final Varlık Yönetim
A.Ş., in total TRL 15,100 Thousand in cash. As of 20 May 2015, the Parent Bank sold
TRL 2,814 Thousand non-performing loans to RCT Varlık Yönetim A.Ş. for TRL 675
Thousand. On 16 December 2015 the Bank sold uncollectable non-performing
consumer loans including credit cards amounting to TRL 29,944 Thousand for
3,600 Thousand in cash to Destek Varlık Yönetim A.Ş. (31 December 2014 - The
Bank sold non-performing loans amounting to TRL 22,255 Thousand on 4 June
2014 to Vera Varlık Yönetim A.Ş. for TRL 22,300 Thousand and TRL 4,709 Thousand
on 16 December 2014 to RCT Varlık Yönetim A Ş. for TRL 1,100 Thousand).
m) Other explanations and disclosures
as follows:
Corporate Small Business Consumer
Total
Current Period (*)
At 1 January 2015
195,558
254,802
89,260
539,620
Charge for the year
136,277
165,094
63,473
364,844
Recoveries (**)
(39,142)
(44,944)
(10,905)
(94,991)
Amounts written off
(91,794)
(90,812)
(63,673)
(246,279)
At 31 December 2015
200,899
284,140
78,155
563,194
122,437
150,757
602,406
(19,641)
(62,901)
(457,078)
102,796
87,856
145,328
-
-
-
At 1 January 2014
219,444
117,537
50,720
387,701
-
-
-
Charge for the year
90,736
157,969
50,258
298,963
(140,438)
Prior Period
Banks (Net)
-
-
-
Recoveries (**)
(108,016)
(20,704)
(11,718)
-
-
-
Amounts written off
(6,606)
-
-
(6,606)
-
-
-
At 31 December 2014
195,558
254,802
89,260
539,620
-
-
-
Non-performing loans classified as “Financial assets at fair value through profit and loss”
amounts to TRL 6,704 Thousand (31 December 2014 – TRL 6,325 Thousand) and Specific
provision amounts to TRL 2,131 Thousand (31 December 2014 – TRL 2,840 Thousand).
(*)
k) Main principles of uncollectable loans and receivables:
Subsidiaries of the Parent Bank apply provisions of the regulation on “Methods and
and Allocation of Reserves”.
(*)
Thousand).
(**)
219
ŞEKERBANK T.A.Ş.
6. Information on held-to-maturity investments:
Collaterals of nonperforming loans:
Current Period
III. Group
IV. Group
V. Group
91,170
123,772
324,172
-
1,334
2,410
2,334
3,847
34,817
Pledged Vehicles
7,024
13,339
36,269
173
5,270
139
72
375
1,044
80,876
60,069
250,602
330
-
-
2,382
3,216
27,952
Mortgages
Asset Pledges
Deposit Pledge
Prior Period
Mortgages
Asset Pledges
Pledged Vehicles
Deposit Pledge
2,129
2,274
23,247
4,000
125
2,917
804
678
16
statements:
Less than
30 days
3160 days
6190 days
Total
Current Period
Corporate loans
248,292
46,131
74,503
368,926
288,135
162,403
94,976
545,514
151,124
65,196
28,817
245,137
687,551
273,730
198,296
1,159,577
-
Bond
236,337
385,479
Other
-
-
Total
236,337
385,479
a.2) Held-to-maturity invstments subject to repurchase agreements are TRL
b) Information on public sector debt investments held-to-maturity:
Government Bonds
1,364,849
-
Other Public Sector Debt Securities
-
-
1,268,303
1,364,849
Net book value of unrestricted held-to-maturity investments is TRL 233,039
Debt Securities
Impairment Provision (-)
Accruals
Total
Corporate loans
204,651
30,723
29,180
264,554
403,518
83,094
68,854
555,466
22,741
232,076
158,193
51,142
766,362
164,959
120,775 1,052,096
The table shows only past due loans of customers,non past due loans of related customers
are not included.
(*)
Prior Period
1,268,303
-
Consumer loans
Current Period
Treasury Bills
Prior Period
Total
Prior Period
-
c) Information on held-to-maturity investments:
Total
Current Period
Treasury Bill
Total
Consumer loans
a.1) Information on held-to-maturity investments given as collateral or blocked:
Current Period
Prior Period
1,123,297
1,228,944
1,119,996
1,224,438
3,301
4,506
(1,191)
(1,646)
149,627
142,211
1,271,733
1,369,509
Current Period
Prior Period
1,227,298
1,110,073
d) Movement of held-to-maturity investments:
Beginning Balance
Foreign currency differences on monetary assets
81
27
-
219,057
Disposals through sales and redemptions
(105,728)
(101,235)
Provision reversal / Impairment provision (-)
455
(624)
1,122,106
1,227,298
Purchases during year
Closing Balance
Accruals
Total
149,627
142,211
1,271,733
1,369,509
220
ŞEKERBANK T.A.Ş.
7. Information on associates (Net):
8. Information on subsidiaries (Net):
a) Information on unconsolidated associates:
a) Informations related equity components of subsidiaries (*):
The Parent Bank’s
Share Percentage- The Parent Bank’s
Address If Different Voting Risk Group Share
(City/ Country)
Percentage (%)
Percentage (%)
Description
Seltur Turistik İşletmeler
Yatırım A.Ş. (*)
(*)
Core Capital
Muğla/Turkey
11.32
11.43
Latest financial information of the related associate as of 31 December 2015 is stated below.
Asset
Equity
Assets Income
Portfolio
Loss
Loss
50,898
28,910
Şeker
Şeker
Şekerbank Yatırım
Şeker
Finansal International Menkul
Şeker Mortgage Zahlungsdienste
Şekerbank Kiralama Banking Unit Değerler Faktoring Finansman
GmbH Der
Kıbrıs Ltd.
A.Ş.
Ltd.
A.Ş.
A.Ş.
A.Ş. Şekerbank T.A.Ş.
39,844
100
-
None.
Marketable Securities
Value Increase Fund
Fair
Value
24,104
61,429
14,591
31,195
21,041
26,000
796
-
1,213
-
-
-
-
-
-
-
-
(127)
-
-
-
1,095
1,919
2,955
1,547
1,881
614
-
Extraordinary
Reserves
1
-
-
8,217
6,434
6,096
-
Tangible assets
revaluation
differences
-
-
-
-
6,971
-
-
-
-
-
(33)
22
33
-
-
-
1,000
-
-
-
(76)
(3,491)
(8,643)
(371)
(1,102)
2,556
(8,479)
(165)
(5,889) (13,650)
(884)
-
(1,041)
-
(205)
Legal Reserves
(1,466) (54,240) 123,544
b) Information on consolidated associates
Paid in Capital
Share Premiums
Other Income
Reserves
Profit/Loss
c) Information on associates
Prior Years’ Profits
and Losses
There is no consolidated associate.
Net Profit for the
Period
2,398
5,007
513
(1,102)
3,597
(8,479)
40
d) Valuation of associates:
Total Core Capital
21,709
55,918
18,175
39,697
38,905
24,264
555
Valued with cost amounts.
Supplementary
Capital
e) Sectoral information and the related carrying amounts on consolidated
associates
None.
f) Associates quoted to stock exchange
None.
g) Information on associates which are sold in the current period:
None.
h) Information on associates purchased in the current period:
None.
-
-
-
-
-
-
-
CAPITAL
21,709
55,918
18,175
39,697
38,905
24,264
555
NET AVAILABLE
EQUITY
21,709
55,918
18,175
39,697
38,905
24,264
555
(*)
Used financial information is as of 31 December 2015 .
The objectives to be achieved through the internal capital adequacy assessment
process are as follows:
•
•
•
•
•
•
Protection of the solid financial condition,
Determination of the risk appetite in line with the strategies and activities,
Determination of the capital level in line with the risk appetite,
Adoption of risk-based approaches rather than traditional ones,
Enhancement of the Performance Management System,
Enhancement of the principles of corporate governance and transparency.
221
ŞEKERBANK T.A.Ş.
b) Information on the unconsolidated subsidiaries :
e) Information on subsidiaries:
The Parent Bank’s
Address If Different Voting Risk Group Share
(City/ Country)
Percentage (%)
Percentage (%)
Description
Sekar Oto Kiralama Turizm
Kargo Taşımacılık Hizmet ve
Ticaret Ltd.Şti..
-
99
c) Information on the consolidated subsidiaries:
The Parent Bank’s
Address (City/ If Different Voting Risk Group Share
Country)
Percentage (%)
Percentage (%)
Şekerbank Kıbrıs Ltd.
Nicosia/TRNC
96.11
96.11
İstanbul/Türkiye
54.13
60.20
Nicosia/TRNC
95.80
95.80
Şekerbank International
Banking Unit Ltd.
110,185
4,000
4,415
-
4,415
4,000
-
-
-
Sales (-)
-
-
-
-
(Provision)/Reversal of Impairment
-
-
118,600
114,600
Purchases
Capital Commitment
İstanbul/Türkiye
99.04
100.00
İstanbul/Türkiye
99.99
Şeker Mortgage
Finansman A.Ş.
İstanbul/Türkiye
Zahlungsdienste GmbH Der
Şekerbank T.A.Ş
Cologne/Germany
-
-
100
100
Current Period
Prior Period
118,600
114,600
f) Valuation of Subsidiaries
Valuation with cost
Şeker Yatırım
Menkul Değerler A.Ş.
-
-
99.99
-
-
62.31
62.31
g) Sectoral information and the related carrying amounts on Subsidiaries
100.00
100.00
d) Information on the subsidiaries with the order as presented in the table above (*) :
Assets
Equity
Assets Income
Portfolio
Loss
Loss
Fair
Value
216,568
21,709
5,236
20,484
269
2,398
(5,889)
15,219
413,019
55,918
12,056
30,843
66
5,007
(13,650) 48,538
18,887
18,175
1,998
1,036
-
513
(884)
11,953
113,072
39,697
22,839
7,029
20
(1,102)
-
34,162
337,485
38,905
18,955
58,726
179
3,597
(1,041)
42,664
646,139
24,264
504
37,325
-
(8,479)
-
32,406
1,339
555
-
30
-
40
(205)
907
(*)
Prior Period
114,600
İstanbul/
Türkiye
Description
Current Period
Latest financial information of the related subsidiaries as of 31 December 2015 is stated below.
Subsidiaries
Banks
Current Period
Prior Period
15,283
15,283
Insurance Companies
-
-
Factoring Companies
21,908
17,908
Leasing Companies
29,108
29,108
Finance Companies
18,963
18,963
Other Financial Subsidiaries
33,338
33,338
Current Period
Prior Period
29,108
29,108
-
-
h) Subsidiaries Quoted to Stock Exchange
Quoted to Domestic Stock Exchange
Quoted to Foreign Stock Exchange
i) Information on Subsidiaries which are Sold in the Current Period:
None.
j) Information on Subsidiaries Purchased in the Current Period:
None.
9. Information on entities under common control: None (31 December 2014 – None).
222
ŞEKERBANK T.A.Ş.
10. Information on finance lease receivables (Net):
Reconciliation of the allowance for impairment losses and advances by classes is
as follows:
Current Period
Prior Period
Gross Leasing Investment
387,249
391,298
Current Period
Unearned Financial Profit from Leasing (-)
(51,639)
(52,885)
At 1 January 2015
-
Charge for the year
Recoveries
Amounts written off
At 31 December 2015
Cancelled Leasing Amounts (-)
Net Leasing Investment (*)
-
-
335,610
338,413
Net Leasing Investment contains non-performing leasing receivables amounting to TRL
67,868 Thousand and specific provisions amounting to TRL 41,206 Thousand (31 December 2014
- TRL 55,285 Thousand non-performing leasing receivables and TRL 28,489 Thousand specific
provisions)
(*)
a) Other Explanation and Disclosures:
Current Period
Neither past due nor impaired
Corporate
194,410
SME Consumer
Other
Total
303,753
109,343
-
-
Past due not impaired
-
5,195
-
-
5,195
Individually impaired
-
67,868
-
-
67,868
194,410
182,406
-
-
376,816
Total
Less: allowance for individually
impaired loans
Prior Period
(41,206)
-
-
(41,206)
Prior Period
194,410
Corporate
141,200
-
-
335,610
SME Consumer
Other
Total
197,369
306,709
109,340
-
-
-
4,908
-
-
4,908
-
55,285
-
-
55,285
197,369
169,533
-
-
366,902
Total
Less: allowance for individually
impaired loans
Net Finance Lease Receivables
197,369
(28,489)
141,044
-
-
(28,489)
338,413
28,489
-
16,207
-
-
16,207
-
(3,490)
-
-
(3,490)
-
-
-
-
-
-
41,206
-
-
41,206
SME Consumer
Other
Total
-
-
18,742
Charge for the year
-
10,886
-
-
10,886
Recoveries
-
(1,139)
-
-
(1,139)
Amounts written off
-
-
-
-
-
At 31 December 2014
-
28,489
-
-
28,489
statements:
Less than
30 days
31-60
days
61-90
days
More than
91 days
Total
Financial Lease Receivables
SME
-
-
-
-
-
1,671
1,305
655
1,564
5,195
Consumer
-
-
-
-
-
Other
-
-
-
-
-
1,671
1,305
655
1,564
5,195
Less than
30 days
31-60
days
61-90
days
More than
91 days
Total
Prior Period
Financial Lease Receivables
Corporate
SME
-
-
18,742
Total
Total
-
Corporate
SME Consumer
-
Corporate
Net Finance Lease Receivables
Other
28,489
At 1 January 2014
Current Period
-
Corporate
-
-
-
-
-
2,546
1,358
444
560
4,908
Consumer
-
-
-
-
-
Other
-
-
-
-
-
2,546
1,358
444
560
4,908
Total
11. Information on derivative financial assets for hedging purposes: None
(31 December 2014 – None).
223
ŞEKERBANK T.A.Ş.
12. Information on tangible assets :
Buildings (*)
Cost
Opening Balance,
1 January 2015
Additions
Write off
Transfer
Disposals (-) (****)
Revaluation
Foreign Exchange
Difference
Impairment Provision/
Reversal
Closing Balance,
31 December 2015
Accumulated
Amortization
Opening Balance,
1 January 2015
Write off
Transfer
Charge for the year
Revaluation
Foreign Exchange
Difference
Impairment Provision/
Reversal
Disposals (-) (****)
Closing Balance,
31 December 2015
Net Book Value,
31 December 2015
Net Book Value,
31 December 2014
a) If impairment amount on individual asset recorded or reversed in the current
period is material for the overall financial statements:
Assets
Other Held Under
Foreclosed
Fixed
Finance
Assets (*) Assets (**)
Leases
a.1) Events and conditions for recording or reversing impairment: None.
Total
572,211
2,244
(164,340)
106,301
533,907
125,445
(118,088)
(2,050)
136,867
37,244
(3,424)
30,753
(3,230)
-
51,034 1,294,019
3,236
168,169
(3,424)
(30,753)
- (285,658)
104,251
292
337
30
-
659
543
(146)
-
-
397
517,251
539,405
198,240
a.2)Amount of recorded or reversed impairment in the financial statements:
The Parent Bank has allocated TRL 2,050 Thousand provision for
Foreclosed Assets in the attached financial statements (31 December 2014
- TRL 2,639 Thousand).
b) The impairment provision set or cancelled in the current period according to
the asset groups not individually significant but materially effecting the overall
financial statements, and the reason and conditions for this: None.
c) Pledges, mortgages and other restrictions on the tangible fixed assets,
expenses arising from the construction for tangible fixed assets, commitments
given for the purchases of tangible fixed assets: None.
13. Information on intangible assets:
23,517 1,278,413
Other
Total
Cost
Opening Balance, January 1, 2015
227,033
1,561
50,945
7,083
12,284
-
77,307
(1,673)
12,873
19,239
-
23,000
(12,873)
4,571
-
334,423
(1,673)
37,655
50,945
235
-
9
-
244
144,307
144,307
Additions
51,335
51,335
Disposals
(434)
(434)
Write Off
-
-
195,208
195,208
70,096
70,096
Charge for the year
23,843
23,843
Disposals
-
-
Write Off
-
-
93,939
93,939
(37,124)
(3,032)
(1,111)
(1,755)
(43,022)
242,650
16,335
106,644
12,943
378,572
101,269
101,269
274,601
523,070
91,596
10,574
899,841
74,211
74,211
345,178
526,824
59,560
28,034
959,596
The useful lives of the intangible fixed assets, which are amortized with straight
line amortization method, are 5 years.
(*)
As of 31 December 2015, value increase and impairment of the buildings and impairment of
immovable held for sale are calculated according to the independent appraisal reports dated
December 2015.
(**)
Cost of leasehold improvements are classified among other fixed assets in the current
period.
(***)
Foreclosed assets contain acquired tangible assets through recoveries from non-performing
loans.
(****)
The disposals in “Buildings” include buildings at gross amount of TRL 148,304 Thousand and
accumulated amortization of TRL 25,004 Thousand which are classified as Assets Held ForSale
and Discontinued Operations line as of 31 December 2015.
224
ŞEKERBANK T.A.Ş.
a) Disclosures for book value, description and remaining depreciation time for a
specific intangible fixed asset that is material to the financial statements: None.
b) Disclosure for intangible fixed assets acquired through government grants and
accounted for at fair value at initial recognition: None.
c) The method of subsequent measurement for intangible fixed assets that are
acquired through government incentives and recorded at fair value at the initial
recognition: None.
d) Movement of deferred tax asset/(liability):
Current Period
Prior Period
Deferred Tax Assets/(Liabilities)
Tangible Assets Base Differences
(60,806)
(49,943)
Provisions (*)
41,754
24,246
Valuation of Financial Assets
(1,791)
(7,456)
Investment Incentive
8,247
10,719
d) The book value of intangible fixed assets that are pledged or restricted for use:
None.
Financial Losses
23,493
8,874
Net Deferred Tax Assets/(Liabilities)
10,897
(13,560)
e) Amount of purchase commitments for intangible fixed assets: None.
(*)
Provisions include employee benefit liabilities, credit card bonuses provisions, legal case
provisions and other provisions.
f) Information on revalued intangible assets according to their types: None.
Current and prior period deferred tax movements are shown in the table below.
g) Amount of total research and development expenses recorded in income
statement within the period if any: None
h) Information on goodwill: None.
i) Movements on goodwill in the current period: None.
14. Information on investment property: None (31 December 2014 – None).
15. Explanations on deferred tax asset:
a) As of 31 December 2015, deferred tax asset computed on the temporary
differences is TRL 18,473 Thousand (31 December 2014 – TRL 17,498 Thousand).
Carried forward tax losses over which deferred tax asset computed is TRL 23,493
b) Temporary differences over which deferred tax asset is not computed and
recorded in the balance sheet in prior periods: None (31 December 2014 – None).
c) Allowance for deferred tax and deferred tax assets from reversal of allowance:
None (31 December 2014 – None).
Deferred Tax (Net), Beginning of the Period
Current Period
Prior Period
(13,560)
(24,138)
Current Period (Expense)/Income
19,818
15,865
Deferred Tax Classified under Equity
4,639
(5,287)
10,897
(13,560)
Deferred Tax Asset (Liability), End of the Period
Şeker Finansal Kiralama A.Ş. recognized deferred tax asset amounting to TRL
8,247 Thousand in the current period financial statements assuming that it will
take advantage of the unused investment incentive in the subsequent periods (31
December 2014 - TRL 10,719 Thousand).
16. Information on assets held for sale and discontinued operations:
The Group has TRL 135,187 Thousand assets held for sale (31 December 2014 - TRL
672 Thousand).
225
ŞEKERBANK T.A.Ş.
17. Information on other assets:
Prior Period
a) Breakdown of other assets:
Current Period
Prior Period
6,693
-
Collaterals Given
159,619
213,291
Advances Given
62,945
12,522
Receivables from Installment Sales of Assets
Receivables from Banking Services
3,868
1,445
Clearing Account
64,018
61,584
Receivables from Credit Card Payments
29,618
14,950
Prepaid Expenses
48,483
13,463
Other Receivables
88,545
56,252
463,789
373,507
Total
Total gross
Less: allowance for
individually impaired
factoring receivables
Total net
At 1 January 2015
Short term
Medium and Long Term
Total
Prior Period
TRY
FC
TRY
307,593
-
254,191
FC
-
2,054
-
-
-
309,647
-
254,191
-
Corporate
SME Consumer
Other
Total
17,259 268,058
-
-
3,632
6,082
-
-
9,714
9,933
44,698
-
-
54,631
30,824 318,838
-
- 349,662
31,166
-
-
21,975 287,672
-
- 309,647
Total gross
Less: allowance for
individually impaired
factoring receivables
Total net
8,849
285,317
40,015
-
1,979
-
-
2,238
9,965
37,886
-
-
47,851
49,038 240,361
-
- 289,399
26,329
-
-
35,208
40,159 214,032
-
-
254,191
8,879
SME Consumer
Other
Total
-
-
35,208
5,190
-
-
5,225
(65)
(353)
-
-
(418)
Amounts written off
-
-
-
-
-
At 31 December 2015
8,849
31,166
-
-
40,015
SME Consumer
Other
Total
31,659
Corporate
At 1 January 2014
Amounts written off
At 31 December 2014
239,310
-
259
26,329
Recoveries
Current Period
Total
35
Charge for the year
b) Other Explanations and Disclosures:
Other
8,879
Recoveries
Current Period
38,814 200,496
Corporate
Charge for the year
a) Maturity Analysis:
SME Consumer
as follows:
b) Other assets which exceed 10 % of the balance sheet total (excluding off balance
sheet commitments) and breakdown of these which constitute at least 20 % of
grand total: None.
18. Information on factoring receivables of the Group:
Corporate
8,529
23,130
-
-
350
3,785
-
-
4,135
-
(586)
-
-
(586)
-
-
-
-
-
8,879
26,329
-
-
35,208
226
ŞEKERBANK T.A.Ş.
II. Explanations Related to the Consolidated Liabilities
1. a) Information on maturity structure of deposits:
Current Period
Demand
7 Day Call
Accounts
Up to 1
month
1-3
Month
3-6
Month
6 Month1 Year
1 Year
And over
Accumulated
Deposits
Total
Saving deposits
352,370
-
199,518
5,093,231
138,563
88,769
181,466
879
6,054,796
652,082
-
110,057
2,746,005
295,692
211,288
861,435
31
4,876,590
629,168
-
96,152
2,534,913
250,695
127,612
313,599
31
3,952,170
Residents abroad
22,914
-
13,905
211,092
44,997
83,676
547,836
-
924,420
63,365
-
199
5,560
9,674
1,271
512
-
80,581
Commercial deposits
457,279
-
261,005
973,842
8,982
16,444
15,720
57
1,733,329
548,016
Residents in Turkey
32,253
-
7,918
492,632
1,245
13,416
552
-
113,477
-
-
-
13,189
6,260
-
-
132,926
440,625
-
698,792
278,602
38,836
10,451
-
-
1,467,306
Interbank deposits
Domestic Banks
Foreign Banks
Participation Banks
Other
-
-
-
-
-
-
-
-
-
1,408
-
698,592
110,148
-
-
-
-
810,148
900
-
200
168,454
38,836
10,451
-
-
218,841
438,317
-
-
-
-
-
-
-
438,317
-
-
-
-
-
-
-
-
-
Total
2,111,451
-
1,277,489
9,589,872
506,181
347,899
1,059,685
967
14,893,544
Prior Period
Demand
7 Day Call
Accounts
Up to 1
month
1-3
Month
3-6
Month
6 Month1 Year
1 Year
And over
Accumulated
Deposits
Total
331,304
-
278,147
3,861,961
309,524
189,010
189,391
736
5,160,073
Saving deposits
454,237
-
164,841
2,821,026
291,182
314,035
659,341
35
4,704,697
439,904
-
161,356
2,679,823
226,184
223,187
241,443
35
3,971,932
Residents abroad
14,333
-
3,485
141,203
64,998
90,848
417,898
-
732,765
61,381
-
57
3,077
14,311
658
1,348
-
80,832
463,100
-
207,363
1,130,383
99,434
42,163
32,000
51
1,974,494
482,459
Residents in Turkey
Commercial deposits
Interbank deposits
Domestic Banks
Foreign Banks
Participation Banks
Other
Total
24,432
-
5,630
404,787
36,474
10,784
352
-
220,830
-
-
-
20,150
6,957
-
-
247,937
277,723
-
398,414
258,036
31,863
3,007
-
-
969,043
-
-
-
-
-
-
-
-
-
714
-
383,948
165,331
-
3,007
-
-
553,000
1,154
-
14,466
92,705
31,863
-
-
-
140,188
275,855
-
-
-
-
-
-
-
275,855
-
-
-
-
-
-
-
-
-
1,833,007
-
1,054,452
8,479,270
802,938
566,614
882,432
822
13,619,535
227
ŞEKERBANK T.A.Ş.
b) Information on saving deposits under the guarantee of saving deposit insurance
and exceeding the limit of saving deposit insurance :
Saving Deposits
Saving deposits
Foreign currency saving deposits
Other deposits in the form of
saving deposits
Under the guarantee
of insurance (*)
Exceeding the limit
of insurance
Current
Period
Prior
Period
Current
Period
Prior
Period
3,568,005
2,982,032
2,487,174
2,178,352
1,544,495
1,385,883
2,643,113
2,387,030
-
-
-
-
foreign authorities' insurance
Liabilities due to held for
trading derivatives
Options
-
-
-
-
Other
Total
Off-shore banking regions’
deposits under
Total
a) Negative differences table related to derivative financial liabilities held-fortrading:
Swap Transactions
Branches’ deposits under foreign
authorities' insurance
2. Information on derivative financial liabilities:
-
-
-
-
5,112,500
4,367,915
5,130,287
4,565,382
According to the BRSA’s circular no 1584 dated 23 February 2005, accruals are included in the
saving deposit amounts.
Headquarter of the Parent Bank is in Turkey and the Parent Bank is under the
coverage of saving deposit insurance.
Deposits and other accounts of chairman and
members of the Board of Directors and their
Mother, Father, Spouse, Dependent Children
FC
-
917
-
618
21,630
34,063
6,459
50,887
-
-
-
-
82
334
51
1,187
-
-
-
-
21,712
35,314
6,510
52,692
Current Period
Prior Period
TRL
FC
TRL
FC
-
-
-
-
From Domestic Banks and
Institutions
285,071
179,819
305,322
155,232
From Foreign Banks, Institutions
and Funds
127,085
2,645,127
51,536
1,522,586
Total
412,156 2,824,946
356,858
1,677,818
Loans from Central Bank of Turkey
Current Period
Deposit of real persons not under the guarantee of saving deposit insurance:
Deposits and other accounts of ultimate
shareholders and their Mother, Father, Spouse,
Dependent Children
TRL
b) Maturity analysis of borrowings:
d) Saving deposits not guaranteed by insurance:
Deposits and other accounts in branches abroad
Prior Period
FC
3. a) Information on banks and other financial institutions:
(*)
c) Information on the saving deposits of the Parent Bank with head office abroad,
if the saving deposits in the branches of the bank located in Turkey are under the
guarantee of saving deposit insurance in that country abroad:
Current Period
TRL
Current Period
Prior Period
-
-
Short-term
Medium and long-term
Total
-
-
12,117
9,501
Deposits and other accounts obtained through
illegal acts defined in the 282nd Article of the
5237 numbered Turkish Criminal Code dated 26
September 2004.
-
-
Saving deposits in banks established in Turkey
exclusively for off shore banking activities
-
-
Prior Period
TRL
FC
TRL
FC
345,094
508,941
353,158
744,327
67,062
2,316,005
3,700
933,491
412,156 2,824,946
356,858
1,677,818
Due to the loan used from the Overseas Private Investment Corporation “OPIC”,
Şeker Mortgage Finansman A.Ş.’ shares, one of the subsidiaries of the Parent Bank,
have been pledged to the OPIC according to the “share pledge and share lien”
agreement between the OPIC and the Company which is valid for current debt
relationship and recorded to share ledger.
c) Additional explanation related to the concentrations of the Parent Bank’s major
liabilities:
The Group’s liabilities do not have any concentration in any sector.
228
ŞEKERBANK T.A.Ş.
4. Information on funds provided from repurchase agreement transactions:
Current Period
From domestic transactions
organizations
organizations
Prior Period
TRL
FC
TRL
FC
1,885,358
-
1,460,419
-
1,803,440
-
1,356,671
-
Issue Date
Series
14 September 2011
2011-2
Investors Amount
FMO
61,250
61,250
14 September 2011
2011-3
IFC
44,750
17,900
2011-4
EIB 120,000
-
TL
12.01.2015
9 December 2011
2011-5
EBRD
60,000
-
TL
12.01.2015
28 November 2013
2013-1
KfW/EIF
135,975
-
TL
12.12.2014
361,846
361,846
TL
13.03.2017
319,400
319,400
TL 12.03.2019
73,004
-
76,251
-
8,914
-
27,497
-
27 February 2014
-
-
-
-
18 December 2015
2015-1
organizations
-
-
-
-
organizations
-
-
-
-
-
-
-
-
1,885,358
-
1,460,419
-
From foreign transactions
Real persons
Total
5. Marketable Securities Issued
As of 31 December 2015 outstanding issued bonds amount of the Group is TRL
Issuance Date
Issuance Amount
Maturity
Şekerbank T.AŞ.
Issuer
16.10.2015
95,000
179 days
Şekerbank T.AŞ.
17.09.2015
178,000
179 days
Şekerbank T.AŞ.
11.08.2015
178,000
175 days
02.06.2015
46,742
10 months
Şeker Finansal Kiralama A.Ş
22.12.2015
35,000
10 months
As of 31 December 2015 outstanding issued marketable securities amount of the
Group is TRL 39,054 Thousand and details are shown the table below (31 December
2014 – TRL 75,089 Thousand).
Issuer
Issuance Date
Issuance Amount
Maturity
17.06.2014
11,710
24 months
11.11.2014
14,700
24 months
02.06.2015
6,258
24 months
22.12.2015
8,000
24 months
The Parent Bank issued Asset Covered Bond amounting to TRL 1,500,000
Thousand and details are shown the table below. The investors are International
security the Bank’s SME loans were used.
Maturity
TL 12.09.2016
9 December 2011
Qualified
Institutional
2014-1
Investors
Real persons
Outstanding
Amount (*) Currency
(*)
EIB
TL 12.09.2016
The issuance dated 27 February 2014, amounting to TRL 361,846 Thousand and
the issuance dated 28 November 2013 amounting to TRL 135,975 Thousand were
made via SKB VTMK International Issuer Ltd (SPV) and there is no shareholding
relationship between the Parent Bank and SKB VTMK International Issuer Ltd. SPV
is managed and controlled by another independent firm and does not have any
administrative or contractual management relationship with the Parent Bank. The
Parent Bank has no control power over SPV. SPV is the investor of some of asset
covered bonds issued by the Parent Bank and also SPV issues bonds itself. In case
of default of SPV’s issued bonds, the Parent Bank has no liability. The Parent Bank
is responsible for running costs of SPV.
As of 31 December 2015 amount of Asset Covered Bond issued is TRL 764,218
Current Period
Prior Period
TRL
FC
TRL
Bills
507,307
-
401,196
-
Asset Backed Securities
764,218
-
642,648
-
39,054
-
75,089
-
1,310,579
-
1,118,933
-
Bonds
Total
FC
6. Other liabilities which exceed 10 % of the balance sheet total (excluding offbalance sheet commitments) and the breakdown of these which constitute at least
20 % of grand total :
Other liabilities do not exceed 10 % of the balance sheet total.
7. Explanations on financial lease obligations (Net):
Current Period
Prior Period
TRL
FC
TRL
Lease Payables
13,543
-
-
-
Deferred Lease Expenses
(2,431)
-
-
-
11,112
-
-
-
Total
FC
229
ŞEKERBANK T.A.Ş.
8. Information on derivative financial liabilities for hedging purposes:
d.1) Movement of employee termination benefits:
The Group does not hold derivative financial liabilities for hedging purposes.
Current Period
Prior Period
61,319
53,882
Cost Service
8,127
6,622
Interest Cost
4,807
5,104
Actuarial Loss/Gain (*)
(5,242)
3,490
Indemnity Paid During the Term
(11,924)
(7,779)
Total
57,087
61,319
9. Information on provisions:
As of 1 January,
a) Information on general provisions:
General Provision
Provisions for first group loans and receivables
Provisions for second group loans and receivables
Provisions for non cash loans
Other
Current Period
Prior Period
179,624
164,430
111,613
105,965
13,911
21,085
48,015
40,596
32,918
29,701
16,678
15,517
3,318
2,352
b) Foreign exchange losses on the foreign currency indexed loans and finance lease
receivables: There is TRL 1,790 Thousand foreign exchange losses on the foreign
currency indexed loans (31 December 2014 - TRL 1,977 Thousand ).
c) The specific provisions provided for unindemnified non-cash loans amount to
TRL 42,185 Thousand (31 December 2014 - TRL 52,444 Thousand).
d) Information on employee termination benefits and unused vacation accrual:
(*)
Actuarial loss/gain shown under other capital reserves after netting of deferred tax.
e) Information on other provisions:
e.1) Provisions for possible losses: None. e.2) The breakdown of the sub-accounts if other provisions exceed 10 % of the
grand total of provisions:
Unindemnified Non-Cash Loans
Credit Card Liquid Point Promotion Provisions
Retirement Fund Provisions
Current Period
Prior Period
42,185
52,444
986
1,401
7,941
-
Legal Case Provisions
16,895
15,749
Bonus Provision
10,493
19,633
2,703
5,907
SDIF Premium Provision
BRSA Pay Provision
-
-
Other Provisions
62,558
11,398
Total
143,761
106,532
The Group has calculated reserve for employee termination benefits by using
actuarial valuations as set out in the TAS No: 19 and reflected this in the financial
statements.
Main actuarial assumptions used for calculation of employment termination
benefit are as follows:
f) Liabilities on pension rights:
-
f.1) Liabilities for pension funds established in accordance with “Social Security
Institution”:
-
-
-
Discount rate for the current period is 10.70 %, inflation rate is 5.00% (31
December 2014-discount rate 8.10 %, inflation rate is 5.00%).
TRL 3,828.37 (full TRL) of maximum wage amount which was in effect as of 31
December 2015, was taken as maximum amount for the calculation regarding
the current period period.
It was assumed that maximum wage would be increased in inflation rate for
every year.
CSO 1980 table was used for mortality averages of females and males.
As of 31 December 2015, the Group has recorded in the financial statements TRL
57,087 Thousand reserve for employee termination benefits (31 December 2014 –
As of 31 December 2015, the Group provided a reserve of TRL 4,314 Thousand (31
December 2014 – TRL 2,991 Thousand) for the unused vacations. This balance
is classified under reserve for employee benefits provisions in the financial
statements.
Şekerbank T.A.Ş. Pension Fund, of which each Parent Bank employee is a member,
is established in accordance with the provisional Article 20 of the Social Security
Act No: 506. As per the provisional article No: 23 of the Banking Law No: 5411, the
Parent Bank pension funds, which were established within the framework of Social
Security Institution Law, should be transferred to the Social Security Institution
within 3 years after the issuance of the related law. Methods and principles related
to the transfer have been determined as per the Cabinet decision no: 2006/11345
made on 30 November 2006. However, the related article of the act has been
cancelled upon the President’s application filed on 2 November 2005 by the
Supreme Court’s order no: E.2005/39, K.2007/33 issued on 22 March 2007, which
was published in the Official Gazette No: 26479 on 30 September 2007 and the
230
ŞEKERBANK T.A.Ş.
Following the issuance of the justified order in relation to the annulment of the
provisional Article 23 of the Banking Law by the Constitutional Court in the Official
Gazette No: 26731 on 15 December 2007, TBMM started to work on establishing
new legal regulations, the Law No: 5754 “Amendments to the Social Security and
General Health Insurance Act Including Certain Laws and Decrees”, which was
published in the Official Gazette No: 26870 on 8 May 2008 has become effective
following the approval of the General Assembly of the TBMM. The new law decrees
that the contributors of the bank pension funds, the ones who receive salaries or
income from these funds and their rightful beneficiaries will be transferred to the
Social Security Institution and will be subject to this Law within 3 years after the
release date of the related article, without any need for further operation, and
that the three-year transfer period can be prolonged for maximum 2 years by the
Cabinet decision. The related three-year transfer period has been prolonged for
4 years by the Cabinet decision dated 1 March 2012, which was published on the
Official Gazette dated 8 March 2012 and No: 28227. The Council of Ministers has
•
•
actuarial surplus). As of 31 December 2015, TRL 7,941 Thousand provision is
recorded on the financial statements of the Group (31 December 2014- None).
The actuary audit explained above and which is in compliance with the principles
of the related law, calculates the present value of the liability as of 31 December
2015, in other words, the estimated amount to be paid to SGK (Social Insurance
Institution). CSO 1980 mortality table, 9.80 % of technical interest rate, 34.50 %
of premium rate was considered in the actuarial calculation. In the table below,
cash value amount of the health expenses within the framework of Social Security
Institution are shown.
Present values of bonuses and salaries payment including health expenses reserve
are shown in the following table in accordance with SGK as of 31 December 2015.
Reserve of Probable Retirement Pensions
Reserve of Probable Widow and Orphant
Reserve of Liability Items
Reserve for Salary Portions to be Given to
Social Insurance Institution for those who
leave the Pension Fund.
Health and Funeral Expenses Reserve
Assets (*)
Cash Value of the Premiums of the Active
Members
Reserve of Common Members’ Salary
Proportion Receivables from other social
insurance institutions.
Actual and Technical Surplus / (Deficit)
Amount
31 December 2015 31 December 2014
(151,470)
(169,792)
(83,566)
(75,930)
(673,365)
(628,220)
(115,585)
(98,310)
368,491
(108,436)
(118,315)
383,977
672,455
685,651
73,409
73,618
(7,941)
42,553
The Pension Fund records the assets by their market value and these market values were
considered for the actuarial work.
(*)
Assets of the Pension Fund consist of following items:
Banks and Other Financial Investments
Associates
Immovable
Other
Total
31 December 2015 31 December 2014
215,620
249,850
51,500
51,381
89,288
70,845
12,083
11,901
368,491
383,977
f.2) Liabilities resulting from all kinds of pension funds, foundations etc. which
provide post retirement benefits for the employees: See footnote, f.1 II/9 of Section
Five.
231
ŞEKERBANK T.A.Ş.
10. Explanations on taxes payable:
12. Explanations on the number of subordinated loans the Bank used, maturity,
interest rate, institution that the loan was borrowed from, and conversion option,
if any:
a) Information on current tax liability:
a.1) Corporate taxes:
Corporate tax to be deducted from payments in the next period is TRL 8,348
Thousand after net off prepaid corporate tax (31 December 2014 - TRL 23,399
Thousand corporate tax to be paid).
Domestic Banks
Other Domestic Institutions
Banks Abroad
Other Institutions Abroad
Total
a.2) Information on taxes payable:
Corporate Tax
Taxation on Securities
Capital Gains Tax on Property
Banking Insurance Transaction Tax (BITT)
Foreign Exchange Transaction Tax
Value Added Tax Payable
Other
Total
Current Period
(8,348)
14,142
544
20,500
3
1,016
8,709
36,566
Prior Period
23,399
12,414
548
17,321
7
2,155
9,157
65,001
a.3) Information on premiums:
Social Security Premiums-Employee
Social Security Premiums-Employer
Bank Social Aid Pension Fund PremiumsEmployee
Bank Social Aid Pension Fund Premiums-Employer
Pension Fund Membership Fees and ProvisionsEmployee
Pension Fund Membership Fees and ProvisionsEmployer
Unemployment insurance-Employee
Unemployment insurance-Employer
Other
Total
Current Period
308
518
Prior Period
294
509
-
-
-
-
9
18
853
8
15
826
b) Explanations on deferred tax liabilities, if any: As of 31 December 2015, deferred
tax liability is TRL 7,576 Thousand and mentioned in the Section V. Note I.15
(31 December 2014 –TRL 31,058 Thousand deferred tax liability).
11. Information on liabilities regarding assets held for sale and discontinued
operations: None.
Current Period
TRL
FC
271,559
226,662
498,221
Prior Period
TRL
FC
248,690
187,981
436,671
13. Information on Shareholders’ Equity:
a) Presentation of Paid-in capital:
Common stock (*)
Preferred stock
(*)
Current Period
1,158,000
-
Prior Period
1,087,187
-
Nominal Capital
b) Paid-in capital amount, explanation as to whether the registered share capital
system is applicable at the Parent Bank and if so amount of registered share
capital ceiling:
Registered share capital system is applied in the Parent Bank. Maximum registered
capital amount is TRL 1,250,000 Thousand.
Capital System
Registered Capital
Paid-in Capital
1,158,000
Maximum
1,250,000
c) Information on share capital increases and their sources; other information
on increased capital shares in current period: The Parent Bank’s paid-in capital
has been increased to TRL 1,158,000 Thousand by contribution in kind in the
amount TRL 25,000 Thousand, which composed of TRL 16,475 Thousand from
extraordinary reserves, TRL 4,262 Thousand from subsidiaries and real estate sale
profit, TRL 4,263 Thousand from share premium and by cash in the amount of TRL
45,813 Thousand.
d) Information on share capital increases from capital reserves: None.
e) Capital commitments in the last fiscal year and at the end of the following
period, the general purpose of these commitments and projected resources
required to meet these commitments: None.
232
ŞEKERBANK T.A.Ş.
f) Indicators of the Parent Bank’s income, profitability and liquidity for the previous
periods and possible effects of these future assumptions on the Parent Bank’s
equity due to the uncertainty of these indicators:
16. Other Information on Shareholders’ Equity:
Retained and current year income, profitability and liquidity of the Parent Bank
are closely monitored, reported by the Financial Control, Budget and Strategic
Planning Department to the Board of Directors and Asset and Liability Committee.
This department forecasts the effects of interest, currency and maturity
fluctuations that change these indicators with static and dynamic scenario analysis.
Net asset value, which is defined as the difference of fair values of assets and
liabilities, is measured. Prognoses are made for the Parent Bank’s future interest
income via simulations of net interest income and scenario analysis.
17. Information on minority shares:
g) Information on preferred shares:
III. Explanations Related to the Consolidated Off-Balance Sheet Contingencies and
Commitments
None.
None.
TRL 44,351 Thousand of minority shares are shown in the accompanying financial
statements (31 December 2014 – TRL 42,228 Thousand).
18. Information on other capital reserves:
Actuarial gain/loss is shown under other capital reserves as of 31 December 2015 .
1. Information on off-balance sheet liabilities:
h) Information on marketable securities value increase fund:
a) Nature and amount of irrevocable loan commitments:
Current Period
TRL
FC
From Subsidiaries, Associations
and Entities Under Common
Control
Marketable Securities Available
for Sale
Valuation Difference
Foreign Exchange Difference
Total
Prior Period
TRL
FC
-
-
-
-
(70,366)
(70,366)
-
(9,292)
(9,292)
-
14. Information on legal reserves:
First legal reserves
Second legal reserves
Other legal reserves appropriated in accordance
with special legislation
Total
Current Period
85,243
15,664
Prior Period
73,446
15,485
100,907
88,931
Current Period
139,182
737,974
647,736
598,850
Prior Period
131,537
552,553
588,612
590,538
1,278
5,826
54,168
2,185,014
1,921
6,171
46,410
1,917,742
b) Possible losses and commitments related to off-balance sheet items including
items listed below:
The Group, within the context of banking activities, undertakes certain
commitments, consisting of loan commitments, letters of guarantee, acceptance
credits and letters of credit.
b.1) Non-cash loans including guarantees, acceptances, financial guarantee and
other letters of credits:
15. Information on extraordinary reserves:
Reserves appropriated by the General Assembly
Retained earnings
Accumulated losses
Foreign currency share capital exchange
difference
Total
Forward Asset Purchase Commitments
Loan Granting Commitments
Payment Commitments for Cheques
Commitments for Credit Card Expenditure limits
Commitments for Promotions related with Credit
Cards and Banking Transactions
Subsidiaries and Associates Capital Commitments
Tax and Fund Obligations for Export Commitments
Other Commitments
Total
Current Period
1,002,592
8,217
6,096
Prior Period
807,260
5,997
204
1,016,905
813,461
Guarantees
Bank Loans
Letters of Credit
Total
Current Period
113,329
409,041
488,906
1,011,276
Prior Period
126,437
299,774
467,274
893,485
233
ŞEKERBANK T.A.Ş.
b.2) Guarantees, suretyships, and similar transactions:
Definite Letter of Guarantees
Temporary Letter of Guarantees
Suretyships and Similar Transactions
Other Letter of Guarantees
Total
Current Period
3,339,423
561,388
875,194
4,776,005
c.1) Total amount of non-cash loans:
Prior Period
3,433,478
509,180
782,136
4,724,794
Letters of Guarantees issued for cash loans
With maturity of 1 year or less than 1 year
With maturity of more than 1 year
Other non-cash loans
Total
Current Period
506,732
199,171
307,561
5,280,549
5,787,281
Prior Period
473,719
344,219
129,500
5,144,560
5,618,279
c.2) Information on sectoral risk breakdown of non-cash loans:
Agricultural
Farming and raising livestock
Forestry
Fishery
Manufacturing
Mining
Production
Electric, gas and water
Construction
Services
Wholesale and retail trade
Hotel, food and beverage services
Transportation and telecommunication
Financial institutions
Real estate and renting services
Self-employment services
Education services
Health and social services
Other
Total
TRL
17,557
13,542
3,787
228
531,903
21,779
492,324
17,800
1,501,248
1,718,869
664,389
20,384
85,554
345,869
520,078
75
1,647
80,873
6,478
3,776,055
Current Period
(%)
FC
0.47
10,569
0.36
10,569
0.10
0.01
14.09
858,117
0.58
96,390
13.04
747,002
0.47
14,725
39.76
433,545
45.51
687,014
17.59
266,290
0.54
17,330
2.27
34,353
9.16
66,669
13.77
189,924
0.00
3
0.04
2.14
112,445
0.17
21,981
100.00
2,011,226
Prior Period
(%)
0.53
0.53
42.66
4.79
37.14
0.73
21.56
34.15
13.24
0.86
1.71
3.31
9.44
0.00
5.59
1.10
100.00
TRL
22,904
17,044
5,569
291
530,041
23,517
485,856
20,668
1,410,625
1,758,614
700,855
18,169
94,583
291,300
528,503
2,133
123,071
3,366
3,725,550
(%)
0.62
0.46
0.15
0.01
14.22
0.63
13.04
0.55
37.86
47.21
18.81
0.49
2.54
7.82
14.19
0.06
3.30
0.09
100.00
FC
18,334
18,334
809,029
1,899
786,070
21,060
382,880
673,166
226,203
13,092
52,832
46,910
185,914
424
147,791
9,320
1,892,729
(%)
0.97
0.97
42.74
0.10
41.53
1.11
20.23
35.57
11.95
0.69
2.79
2.49
9.82
7.81
0.49
100.00
234
ŞEKERBANK T.A.Ş.
c.3) Information on I st and II nd Group non-cash loans:
Non-cash loans
Bank acceptances
Letters of credit
I st Group
II nd Group
TRL
FC
TRL
FC
3,601,592
962,993
145,446
65,974
18,092
387,365
3,000
584
-
477,395
-
11,511
Endorsements
-
-
-
-
Underwriting commitments
-
-
-
-
Guaranteed prefinancing credits
-
-
-
-
7,925
105,404
-
-
Other commitments and
suretyships
The Group provided reserve amounting to TRL 42,185 Thousand (31 December 2014
- TRL 52,444 Thousand) for non-indemnified non-cash loans amounting to TRL
2. Information related to derivative financial instruments:
Current Period
Prior Period
10,900,094
601,088
10,152,322
146,684
1,089,835
11,989,929
11,152,854
813,635
10,220,168
119,051
6,000
6,000
948,160
12,107,014
Types of hedging transactions
Fair value hedges
Cash flow hedges
Net investment hedges
B.Total hedging related derivatives
-
-
Total Derivative Transactions (A+B)
11,989,929
12,107,014
Types of trading transactions
Foreign currency related derivative transactions (I)
Forward transactions
Swap transactions
Futures transactions
Option transactions
Interest related derivative transactions (II)
Forward rate transactions
Interest rate swap transactions
Interest option transactions
Futures interest transactions
Other trading derivative transactions (III)
A. Total trading derivative transactions(I+II+III)
Related to agreements of forward transactions and options; the information based
on the type of forward and options transactions are disclosed separately, specified
with related amounts, type of agreement, purpose of transaction, nature of risk,
strategy of risk management, hedging relationship, possible effects on the Parent
Bank’s financial position, timing of cash flows, reasons of unrealized transactions
which previously projected to be realized, income and expenses that could not be
linked to income statement in the current period because of the agreements:
The Group’s derivative instruments consist of foreign currency swaps, option
and forward foreign currency buy/sell transactions. The Parent Bank revalues
foreign currency forward and swap transactions using the Parent Bank’s end of
reporting foreign exchange rates. The resulting gain or loss is reflected in the
income statement. In calculation of fair values of the interest swap contracts,
interest amounts to be paid or received upon the fixed interest rate in the contract
and interest amounts to be received or paid upon the floating interest rates in the
term’s income statement. Some of the derivative instruments, although made
for economical hedging purposes, are accounted as trading transactions since
they are not qualified to be a hedging instrument as per “Financial Instruments:
Recognition and Measurement” (“TAS 39”).
As of 31 December 2015 breakdown of the Group’s foreign currency forward
and swap transactions based on currencies are disclosed below in their TRL
equivalents:
Forward Forward
Buy
Sell
Swap
Buy
Swap Option Option Future Future
Sell
Buy
Sell
Buy
Sell
Current Period
TRL
149,177 150,605
420,134 3,284,312 44,639 26,756
USD
141,437 139,507 2,260,447
1,177,127 27,221 45,034
EURO
9,749
9,749 2,785,532
801,747
872
2,162
OTHER
2,766
3,081
180,987
326,888
Total
303,129 302,942 5,647,100 5,590,074 72,732 73,952
Prior Period
TRL
90,432 321,653
653,410 2,813,028 39,803 19,250
USD
309,073 82,438 2,194,887 1,802,032 9,306 41,644
EURO
3,705
2,714 2,676,817
696,461 9,048
OTHER
3,620
382
61,314
248,092
Total
406,830 407,187 5,586,428 5,559,613 58,157 60,894
-
-
-
-
As of 31 December 2015, the Group has no cash flow hedges (31 December 2014 None).
As of 31 December 2015, the Group has no hedge of net investment in foreign
operations (31 December 2014 - None).
3. Explanations on contingent liabilities and assets:
a.1) The Group's share in contingent liabilities arising from entities under common
control together with other venturer: None.
a.2) Share of entity under common control in its own contingent liabilities: None.
a.3) The Group’s contingent liabilities resulting from liabilities of other venturers in
entity under common control: None.
b) Accounting and presentation of contingent assets and liabilities in the financial
statements:
b.1) Contingent assets are accounted for, if probability of realization is almost
certain. If probability of realization is high, then it is explained in the footnotes. As
of 31 December 2015 there are no contingent assets that need to be explained.
235
ŞEKERBANK T.A.Ş.
b.2) A provision is made for contingent liabilities, if realization is probable and the
amount can reliably be determined. If realization is remote or the amount cannot
be determined reliably, then it is explained in the footnotes:
The results of the rating performed by JCR Eurasia Rating for Şeker Finansal
Kiralama A.Ş. is shown below:
JCR Eurasia Rating: June 2015
As of 31 December 2015, there are 1,188 continuing legal cases against the Group
based on information received from Law Departments of the Group. The total
amount of these cases is TRL 68,765 Thousand. Provision amount for these
cases is TRL 16,895 Thousand (According to the information obtained from Law
Departments of the Group, as of 31 December 2014 number of continuing legal
cases against the Group was 1,965. Total amount of those cases was TRL 66,162
Thousand. TRL 15,749 Thousand of provision was allocated for those cases).
c) Explanations on revocable commitments: As of 31 December 2015, the Group’s
revocable commitments amount is TRL 298,860 Thousand (31 December 2014 TRL 330,796 Thousand).
Foreign Currency Commitments
Long term
BBB-
Short term
A-3
View
Stable
Long Term National
BBB+ (Trk)
Short Term National
A-2 (Trk)
Turkish Lira Commitments
Long term
BBB-
Short term
A-3
View
Stable
Information related with custodian and intermediary services is given in the
financial structure section under the name of the “Explanations related to
transactions made on behalf of others and fiduciary transaction based on trust” in
section four XI. item.
Long Term National
BBB+ (Trk)
Short Term National
A-2 (Trk)
View
Stable
Individual Rating
AB
5. The information on the Parent Bank’s rating by the international rating
institutions:
Support Points
2
4. Custodian and intermediary services:
The results of the rating performed by JCR Eurasia Rating for Şeker Mortgage
Finansman A.Ş. is shown below:
The results of the ratings performed are shown below:
Fitch Ratings: February 2015
Foreign Currency
Long Term
Short Term
Outlook
Local Currency
Long Term
Short Term
Outlook
National
Outlook
Viability bbSupport Rating
Moody’s: December 2014
Foreign Currency
Long Term
Short Term
Local Currency
Long Term
Short Term
National Long Term
National Short Term
Outlook
JCR Eurasia Rating: May 2015
BBBA-3
Foreign Currency Commitments
Long term
BBB-
BBBA-3
Stable
AA- (Trk)
A-1+ (Trk)
2
Short term
A-3
BBB
Stable
A +(tur)
Stable
JCR: July 2015
Foreign Currency
Local Currency
Outlook
Long Term National
Short Term National
Support Rating
View
Stable
Long Term National
A (Trk)
Short Term National
A-1 (Trk)
5
Individual Rating
AB
BBB
Stable
Ba2
NP
Ba2
NP
A3.tr
TR-2
Negative
D-
Capital Intelligence: December 2015
Foreign Currency
Long Term
Short Term
Support Rating
Outlook
BB
B
BB
4
Negative
Turkish Lira Commitments
Long term
BBB-
Short term
A-3
View
Stable
Long Term National
A (Trk)
Short Term National
A-1 (Trk)
View
Positive
Individual Rating
B
Support Points
2
236
ŞEKERBANK T.A.Ş.
IV. Explanations Related to the Consolidated Income Statement
d) Information on interest income received from associates and subsidiaries:
1. a) Information on interest income on loans:
Current Period
Interest on Loans (*)
Short Term Loans
Medium and Long Term Loans
Interest on Non-Performing
Loans
Premiums received from
Resource Utilization Support
Fund
(*)
Prior Period
TRL
FC
TRL
FC
2,006,746
133,965
1,867,634
125,396
1,015,199
40,552
961,576
40,833
969,772
93,413
871,441
84,563
21,775
-
34,617
-
Banks(*)
Domestic Banks
-
Foreign Banks
Branches and Head Office
Abroad
Includes fees and commissions obtained from cash loans.
b) Information on interest received from banks:
Total
Current Period
TRL
FC
Prior Period
TRL
FC
399
171
484
-
Domestic Banks
1,141
56
960
1,090
Foreign Banks
105
1,793
479
1,467
-
-
-
-
1,645
2,020
1,923
2,557
Branches and Head Office Abroad
Total
1
168
Current Period
-
-
Prior Period
2. a) Information on interest expense on funds borrowed :
-
Current Period
Interest Income Received from Associates and
Subsidiaries
(*)
Prior Period
TRL
FC
TRL
FC
44,455
75,045
35,300
51,842
-
-
-
-
36,660
7,565
29,615
6,910
7,795
67,480
5,685
44,932
-
-
-
-
-
-
-
-
44,455
75,045
35,300
51,842
Includes fees and commission expenses of cash loans.
b) Information on interest expense to associates and subsidiaries :
Current Period
Prior Period
106
17
Interest Expense to Associates and Subsidiaries
c) Information on interest expense to marketable securities issued :
c) Interest received income from marketable securities portfolio:
Current Period
Current Period
Trading Securities
Prior Period
TRL
FC
TRL
FC
419
281
1,798
138
Financial Assets at Fair Value
Through Profit and Loss
-
-
-
-
Available-for-Sale Securities
119,324
-
71,205
-
Held-to-Maturity Securities
Total
116,143
32
139,424
26
235,886
313
212,427
164
Interest expense on securities
issued
Prior Period
TRL
FC
TRL
FC
101,100
-
119,382
-
237
ŞEKERBANK T.A.Ş.
d) Distribution of interest expense on deposits based on maturity of deposits :
Account name
TRL
Bank deposits
Saving deposits
Commercial deposits
Other deposits
Total
Foreign Currency
Bank deposits
Total
Grand Total
Demand
Deposits
Up to
1 Month
Up to
3 Months
Up to
6 Months
124
41
1
166
43,477
21,674
42
15,126
595
80,914
11,081
477,412
1,278
114,547
69,876
674,194
377
19,028
332
8,233
776
28,746
61
1,757
183
2,001
2,167
2,203
348
2,551
83,465
53,529
2,013
55,542
729,736
5,170
5,170
33,916
3. Information on dividend income :
Trading Securities
Other
Total
Current Period
1,757
1,757
Prior Period
1,269
1,269
Current Period
12,318,021
11,886
1,330,323
10,975,812
12,548,544
381
1,347,900
11,200,263
Prior Period
6,020,788
49,691
790,333
5,180,764
6,069,607
2,025
965,003
5,102,579
4. Information on net trading income :
Income
Profit on capital market operations
Profit on derivative financial instruments
Foreign exchange gains
Losses (-)
Losses on capital market operations
Losses on derivative financial instruments
Foreign exchange losses
5. Information on other operating income :
The information on the factors affecting the Group’s income including new
developments, and the explanation on nature and amount of income earned from
such items :
provisions reversal income and TRL 108,795 Thousand other operating income.
includes TRL 79,609 Thousand reversal of specific provisions due to collection
of cash loans, TRL 27,480 Thousand reversal of non-cash provisions, TRL 2,939
Thousand of securities impairment provision reversal and TRL 30,484 Thousand
reversal of legal case provision and other provisions.
Time Deposits
Up to
1 Year
More than
1 Year
Accumulated
Deposits
Total
142
11,419
75
2,123
624
14,383
16,050
94
3,333
38
19,515
34
2
36
55,077
545,741
1,821
143,405
71,910
817,954
5,420
5,420
19,803
17,189
17,189
36,704
36
83,572
4,118
183
87,873
905,827
provisions reversal income and TRL 59,331 Thousand other operating income.
includes TRL 96,034 Thousand reversal of specific provisions due to collection of
cash loans, TRL 16,569 Thousand reversal of non-cash provisions, TRL 517 Thousand
of securities impairment provision reversal and TRL 22,684 Thousand reversal of
legal case provision and other provisions.
6. Provision expenses of banks for loans and other receivables:
Specific provisions for loans and other receivables
III.Group Loans and Receivables
IV.Group Loans and Receivables
V.Group Loans and Receivables
General loan loss provision expenses
Provision expenses for possible losses
Marketable securities impairment losses
Investment securities available for sale
Impairment provision expense
Associates
Subsidiaries
Entities under common control
Investments held to maturity
Other (*)
Total
Current Period
368,584
92,204
105,856
170,524
15,901
1,000
43
42
1
1,546
1,546
67,400
454,474
Prior Period
266,217
60,128
56,807
149,282
31,769
55
19
36
624
624
17,150
315,815
(*)
Other provisions includes TRL 16,400 Thousand unindemnified non-cash loans provision (31
December 2014 – TRL 13,185 Thousand unindemnified non-cash loan).
238
ŞEKERBANK T.A.Ş.
11. The explanations on net profit/(loss) for the period :
7. Information on other operating expenses :
Personnel expenses
Reserve for employee termination benefits
Bank social aid provision fund deficit provision
Impairment losses on fixed assets
Depreciation expenses of fixed assets
Impairment losses on intangible assets
Goodwill impairment losses
Depreciation expenses of intangible assets
Impairment for investments accounted for under
equity method
Impairment losses on assets held for resale
Depreciation expenses of assets held for resale
Impairment losses on assets held for sale
Other operating expenses
Services Rent expenses
Maintenance expenses
Advertisement expenses
Other expenses (*)
Loss on sales of assets
Other
Total
Current Period
389,077
1,010
7,941
25,371
23,843
Prior Period
372,998
3,947
159
31,789
17,584
2,249
12,284
314,428
58,504
16,274
14,678
224,972
476
139,037
915,716
2,573
4,060
308,988
52,445
12,524
19,546
224,473
118
117,212
859,428
(*)
“Other” includes TRL 25,865 Thousand premiums paid to the Saving Deposit Insurance
Fund,TRL 2,655 Thousand legal case provision and TRL 10,000 Thousand bonus provision
(31 December 2014 – TRL 25,162 Thousand to the Saving Deposit Insurance Fund premium
provision and TRL 19,000 Thousand bonus provision).
(**)
Other expenses include TRL 26,256 Thousand communication expenses, TRL 17,034 Thousand
computer usage expenses, TRL 5,437 Thousand promotion applications related with credit
cards and banking services (31 December 2014 - TRL 25,211 Thousand communication expenses,
TRL 19,232 Thousand computer usage expenses, TRL 2,773 Thousand promotion applications
related with credit cards and banking services).
8. Information on profit/(loss) from continued and discontinued operations before
taxes :
Profit before tax of the Group has decreased by 73.87 % for the period ended
31 December 2015 as compared to the prior period. In comparison with in the
same period, the Group’s operating income decreased by 2.14 %, net fees and
commissions income increased by 14.32 %, other operating income increased by
6.55 %, provision expenses increased by 43.91 % and other operating expenses
increased by 27.76 %.
9. Information on tax provision for continued and discontinued operations :
a) The nature and amount of certain income and expense items from ordinary
operations is disclosed if the disclosure for nature, amount and repetition rate of
such items is required for the complete understanding of the Group's performance
for the period : None.
b) Effect of changes in accounting estimates on income statement for the current
and, if any, for subsequent periods : None.
c) Profit or loss attributable to minority shares: Profit attributable to minority
shares is TRL 2,108 Thousand (31 December 2014- TRL 4,602 Thousand profit).
d) If the other items in the income statement exceed 10 % of the income statement
total, accounts amounting to at least 20 % of these items are shown below :
Other Fees and commissions received
Banking Services Income
Other
Total
Current Period
272,532
26,917
299,449
Prior Period
216,754
30,451
247,205
Other Fees and commissions given
Fees and commissions given to Banks
Fees and commissions given for Credit Cards
Other
Total
Current Period
14,391
23,834
24,842
63,067
Prior Period
18,804
14,526
19,103
52,433
e) Nature and amount of changes in accounting estimates, which have a material
effect on current period or expected to have a material effect on subsequent
periods : None.
V. Explanations Related to Statement of Shareholders' Equity Movement
1. Information on the corrections related with the Accounting Standards of
Financial Instruments in current period
1.a) Increase after the revaluation of the available for sale investments
Value increase or loss from the revaluation of available for sale investment
is recorded under shareholders equity. The value decrease recorded under
shareholders equity is TRL 87,957 Thousand. Net value decrease from available for
sale investments is TRL 70,366 Thousand after deferred tax asset amounting to
TRL 17,591 Thousand.
a) As of 31 December 2015, current tax charge is TRL 2,359 Thousand (31 December
2014 – TRL 75,030 Thousand current tax charge) and deferred tax benefit is TRL
19,818 Thousand (31 December 2014 – TRL 15,865 Thousand deferred tax benefit).
1.b) Information about increases that occurred on items for protection from cash
flow risk
b) Deferred tax benefit on temporary differences is TRL 19,818 Thousand
(31 December 2014 – TRL 15,865 Thousand deferred tax benefit).
i. Information on the items for cash flow hedges at the beginning and end of the
period and confirmation
10. Information on net profit/(loss) from continued and discontinued operations :
There are no items for hedging the cash flow risk at the beginning and end of the
periods.
The net profit of the Group decreased for the period ended 31 December 2015 by
60.57 % as compared to the prior period profit.
239
ŞEKERBANK T.A.Ş.
ii. Any gain or loss arising from, a derivative or non-derivative financial asset or
liability designated as hedging instrument in cash flow hedge and, amount which
recorded in the current period, under equity.
There is no derivative specified as protection device from risk and any gain or loss
concerning non-derivative financial assets and obligations.
VII. Explanations on the Risk Group of the Parent Bank
1. Volume of related party transactions, income and expense amounts involved and
outstanding loan and deposit balances :
a) Current Period:
iii. Information on the reconciliation of foreign currency gain/(loss) at the beginning
and end period
Related Parties
There is no foreign currency gain/(loss) in the shareholders equity.
VI. Explanations Related to Statement of Cash Flows
1. The effects of the other items stated in the cash flow statement and the changes
in foreign currency exchange rates on cash and cash equivalents:
“Net increase/decrease in other liabilities” item amounting to TRL 1,023 Thousand
(31 December 2014 - TRL 7,441 Thousand) in “Changes in operating assets and
liabilities” consists of changes in sundry creditors, other liabilities and interbank
money market borrowings. “Net increase/decrease in other assets” item with
a total amount of TRL 598,180 Thousand (31 December 2014 - TRL 444,584
Thousand) consists of changes in sundry debtors and other assets.
The effect of change in foreign exchange rate on “cash and cash equivalents” is
an increase amounting to TRL 85,114 Thousand (31 December 2014 - TRL 32,214
Thousand increase).
Loans and other receivables
Balance at beginning of period
Balance at end of period
Cash
Central Bank
Other
Cash Equivalents
Banks
01.01.2015
01.01.2014
195,883
208,025
4
286,444
419,593
3
144,205
7,980
556,097
137,709
4,000
847,749
3. Cash and cash equivalents at the end of periods
Cash
Central Bank
Other
Cash Equivalents
Banks
31.12.2015
31.12.2014
175,499
390,603
4
195,883
208,025
4
98,436
6,980
671,522
144,205
7,980
556,097
1
Direct and Indirect
Other Entities
Shareholders
Included in the
of the Bank
Risk Group
Cash Non-Cash Cash Non-Cash
13,057 367,395
16,186 413,158
83
25,631
42,241
47,232
350
-
-
b) Prior Period:
Related Parties
Subsidiaries and
Associates
Cash Non-Cash
Loans and other receivables
Balance at beginning of period 12,875
168
Direct and Indirect
Other Entities
Shareholders
Included in the
of the Bank
Risk Group
Cash Non-Cash Cash Non-Cash
654 317,083
13,057 367,395
71 22,699
40,751
42,241
308
-
-
c.1) Information on related party deposits balances:
2. Cash and cash equivalents at beginning of periods
The recorded amounts of the cash and cash equivalent assets at the balance sheet
and the recorded amounts in the cash flow statement:
Subsidiaries and
Associates
Cash Non-Cash
Related parties
Deposits
Balance at beginning of period
Direct and Indirect
Other Entities
Subsidiaries and
Shareholders
Included In the
Associates
of the Bank
Risk Group
Current
Prior Current
Prior Current
Prior
Period
Period
Period
Period
Period
Period
3,618
1,785 90,946 193,553
7,451
3,618 53,625 90,946
106
17
6,519
9,967
-
c.2) Information on forward and option agreements and other similar agreements
made with related parties :
None.
2. Disclosures for related parties:
a) The relations of the Parent Bank with the entities controlled by the Parent Bank
and its related parties, regardless of whether there are any transactions or not :
In the normal course of its banking activities, the Parent Bank conducted various
business transactions with related parties at commercial terms and at rates which
approximate market rates. Any transaction among the Group subsidiaries and/or
related parties are executed on arm-lengths conditions.
240
ŞEKERBANK T.A.Ş.
b) Nature of the transactions amount and ratio to the total volume of transactions,
amount of major items and ratio to all items, pricing policies and other factors :
Amount
Shares %
413,158
2.46
Cash loans
Non-cash loans
63,418
1.10
Deposits
61,076
0.41
These transactions are priced in accordance with the general pricing policies of the
Parent Bank and are in line with market rates .
c) In cases separate disclosure is not necessary, in order to present the total
impact on the financial statements, total of similar items : Explained in b).
d) Transactions accounted under the equity method : None.
e) Disclosures related to purchase and sale of real estate and other assets, services
given/received, agency contracts, leasing contracts, transferring information
as a result of research and development, license contracts, financing (including
supports in the form of loans, capital in cash and capital in kind), guarantees, and
management contracts :
The Parent Bank enters into lease agreements with Şeker Finansal Kiralama A.Ş.
As of 31 December 2015 the total leasing obligations related to those agreements
amounted to TRL 484 Thousand (31 December 2014 - TRL 6,641 Thousand).
Additionally, the Parent Bank provides agency services for Şeker Yatırım Menkul
Değerler A.Ş. through its branches.
Within the limits of the Banking Law, the Group renders cash and non-cash loans
to its related parties and the ratio of these loans to the Group’s total cash and
non-cash loan portfolio is 2.11 %. Details of these loans are explained in the Section
V, Note V-1a.
As of 31 December 2015 the Group has no purchases and sale of real estate and
other assets, transfer of information as a result of research and development, and
management contracts with the related parties.
f) Benefits provided to the top management of the Group during current period
amount to TRL 30,258 Thousand (31 December 2014 - TRL 28,246 Thousand).
VIII. Explanations and notes related to subsequent events
On 26 January 2016, as a result of assessment of the year 2015, Kobirate
International Credit Rating and Corporate Management Services increased the
Parent Bank’s Corporate Governance rating to 9.17 (91.70 %)
dated 7 September 2015 and numbered 25/1103, the Parent Bank has completed
the domestic sale of TRQSKBK71622 ISIN code bond with TRL 40,500 Thousand
nominal value and 175 days maturity ( on 26 July 2016) to qualified investors.
dated 7 September 2015 and numbered 25/1103, the Parent Bank has completed
the domestic sale of TRQSKBK51616 ISIN code bond with TRL 57,500 Thousand
nominal value and 91 days maturity (on 3 May 2016) to qualified investors.
Executive Vice Presidents Nejat Bilginer and Feyza Önen resigned as of 1 February
2016; Ramazan Karademir was retired as of 1 February 2016.
On 8 February 2016, the Parent Bank announced that in accordance with the
decision of the Board of Directors Servet Taze would be appointed as the General
Manager following the approval of the BRSA and the General Manager Halit Haydar
Yıldız would be appointed as the member of Board of Director.
On 12 February 2016, Fitch Ratings has announced the Parent Bank’s Long-Term
Foreign and Local Currency Notes as BB- , Short Term Notes B ; National Rating
Note A + (TUR); Viability Rating bb- ; Support Rating 5 and has announced the
Outlook as Negative.
IX. Explanations on the Parent Bank’s domestic branches, agencies and branches
abroad and off-shore branches
1. Explanations on the Parent Bank’s domestic branches, agencies and branches
abroad and off-shore branches:
Domestic branches
Number of Number of
Branches Employees
301
4,078
Rep-offices Abroad
-
-
Country
-
Branches abroad
-
-
-
Total Assets
-
Capital
-
Off-shore Branches
-
-
-
-
-
2. Explanations on Branch and Agency Openings or Closings of the Parent Bank:
None.
SECTION SIX
OTHER EXPLANATIONS
I. Explanations on the Operations of the Group:
None.
SECTION SEVEN
INDEPENDENT AUDITOR’S REPORT
I. Explanations on the Independent Auditor’s Report :
The consolidated financial statements for the year ended 31 December 2015
were audited by Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik
AŞ (the Turkish member firm of KPMG International Cooperative, a Swiss entity)
and Independent Auditors’ Report dated 26 February 2016 is presented in the
introduction of this report.
II. Other Footnotes and Explanations Prepared by Independent Auditors :
None.
241
ŞEKERBANK BRANCHES
GEOGRAPHIC DISTRIBUTION
NO
NAME OF BRANCHES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
4.Levent
Acıpayam
Adana
Adapazarı
Adıyaman
Afşin
Afyon
Ağrı
Akçaabat
Akdeniz
Akdeniz Sanayi Sitesi
Akhisar
Aksaray
Aksaray/İstanbul
Akşehir
Akyazı
Alanya
Alaşehir
Aliağa
Alpullu
Altunizade
Amasya
Anafartalar
Anamur
Ankara Caddesi/Bursa
Antakya
Antalya
Antalya Hal
29
30
31
32
33
34
Arnavutköy/İstanbul
Artvin
Avcılar
Aydın
Aydınlıkevler/Ankara
Ayrancılar/İzmir
Azerbaycan Bulvarı/
Kahramanmaraş
Babaeski
Bafra
35
36
37
BRANCHES ADDRESSES
TELEPHONE
Eski Büyükdere Cad. No: 53 4. Levent Beşiktaş/İstanbul
Yukarı Mahallesi, Atatürk Bulvarı, No:66 Acıpayam/Denizli
Abidinpaşa Cad. No: 40 Seyhan/Adana
Cumhuriyet Mahallesi, Doktor Kamil Sokak, No:16/B Adapazarı/Sakarya
Hocaömer Mahallesi No:160 Adıyaman
Ebülfez Elçibey Cad. No:59 Afşin/Kahramanmaraş
Karaman Mah. Milli Egemenlik Cad.No.32/A Afyonkarahisar
Yavuz Mahallesi, Kağızman Caddesi, No: 4 Merkez/Ağrı
Dürbinar Mahallesi, Hükümet Caddesi, Tosun İşhanı No:81/A Akçaabat/Trabzon
Cumhuriyet Cad. No: 75/C Antalya
Şafak Mah. 5012. Sok. No:52 Kepez/Antalya
Şehit Teğmen Tahir Ün Caddesi Paşa Mah. 14.sok No:89 Akhisar/Manisa
Ankara Cad. Mecit Mutlu İşhanı No: 7/B Aksaray
Aksaray Mahallesi, İnkilap Caddesi, No:43/A Aksaray Fatih/İstanbul
Selçuk Mahallesi, İnönü Caddesi, No:43 Akşehir/Konya
Konuralp Mah. Ada Cad. No:318 Akyazı/Sakarya
Bostancı Pınarı Cad. No:26/B Alanya/Antalya
Kışla Caddesi, No:94 Alaşehir/Manisa
Kazımdirik Mahallesi, İstiklal Caddesi, No:62 Aliağa/İzmir
Ordu Cad. No: 22/B Alpullu Babaeski/Kırklareli
Altunizade Mah. Kısıklı Cad. No:5B Üsküdar/İstanbul
Mustafa Kemal Paşa Cad. No:47/A Amasya
Anafartalar Cad. No: 62/D Ulus Altındağ/Ankara
Esentepe (Saray) Mah. Atatürk Bulvarı No:8 Anamur/Mersin
Anadolu Mahallesi, Ankara Caddesi, No:75 Yıldırım/Bursa
Yavuz Selim Cad. Zühtiye Ökten İşhanı B Blok No: 1 Hatay
Tahılpazarı Mah.Adnan Menderes Bulv.No:15/1 Antalya
Yeni Toptancı Hali No:868 Antalya
Arnavutköy Mahallesi, Eski Edirne Caddesi, Nizambey İş Merkezi No:1310/1312 A
Arnavutköy/İstanbul
Çarşı Mahallesi, Cumhuriyet Caddesi, No:10 Merkez/Artvin
Cihangir Mah. Defne Sokak No:2 Avcılar/İstanbul
Ramazanpaşa Mah. İstiklal Cad. Halil Zühtü Özçelik Apt. No:15 Aydın
Ahiler Mahallesi, Çevreli Caddesi, No:88/17 Aydınlıkevler Altındağ/Ankara
İnönü Mah. Aydın Cad. No:69 Ayrancılar Torbalı/İzmir
+90 212 - 268 35 96
+90 258 - 518 18 15
+90 322 - 352 95 54
+90 264 - 274 53 71
+90 416 - 213 89 22
+90 344 - 511 43 72
+90 272 - 215 24 26
+90 472 - 215 07 49
+90 462 - 228 44 45
+90 242 - 248 37 08
+90 242 - 221 50 40
+90 236 - 412 96 55
+90 382 - 212 52 84
+90 212 - 530 73 43
+90 332 - 813 62 72
+90 264 - 418 24 65
+90 242 - 513 61 90
+90 236 - 654 20 54
+90 232 - 617 19 19
+90 288 - 523 10 51
+90 216 - 651 32 41
+90 358 - 218 50 85
+90 312 - 310 60 17
+90 324 - 814 88 51
+90 224 - 362 41 54
+90 326 - 225 19 70
+90 242 - 248 59 50
+90 242 - 339 73 48
Egemenlik Mahallesi, Azerbaycan Bulvarı, No:53/A Kahramanmaraş
Hacı Hasan Mah. Adil Onat Cad. No: 5 Babaeski/Kırklareli
Tekel Cad. No: 33/A Bafra/Samsun
+90 344 - 235 08 25
+90 288 - 512 11 52
+90 362 - 543 37 54
+90 212 - 681 03 40
+90 466 - 212 74 44
+90 212 - 509 84 84
+90 256 - 225 49 30
+90 312 - 316 44 83
+90 232 - 854 81 84
242
ŞEKERBANK BRANCHES GEOGRAPHIC DISTRIBUTION
NO
NAME OF BRANCHES
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Bağcılar
Bahçelievler/Ankara
Bakırköy
Balgat
Balıkesir
Banaz
Bandırma
Baraj Yolu/Adana
Başkent
Batman
Bayburt
Bayrampaşa
Beşevler/Bursa
Beşiktaş
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
Beylikdüzü
Beypazarı
Beyşehir
Biga
Bodrum
Boğazlıyan
Bolu
Bornova
Bozüyük
Buca
Bucak
Burdur
Bursa
Büsan Organize Sanayi
Cebeci
Ceyhan
Cumhuriyet Caddesi/
Şanlıurfa
Çağlayan
Çallı
Çamdibi/İzmir
Çanakkale
Çankaya
Çankırı
68
69
70
71
72
73
74
BRANCHES ADDRESSES
TELEPHONE
Bağcılar Caddesi No:54 Bağcılar/İstanbul
6. Cad. No: 15/A Bahçelievler Çankaya/Ankara
İstanbul Cad. No: 42/B Bakırköy/İstanbul
Ceyhun Atıf Kansu Cad No.48 Balgat Çankaya/Ankara
Milli Kuvvetler Cad. No: 50/A Balıkesir
Başaran Cad. No:4 Banaz/Uşak
Haydarçavuş Mahallesi, İnönü Caddesi, No:25 Bandırma/Balıkesir
Beyaz Evler Mahallesi, Bülent Angın Bulvarı, Turan Apartmanı, No:128 Çukurova/Adana
Birlik Mahallesi 441.Cadde No:3/A Çankaya/Ankara
GAP Mahallesi Turgut Özal Bulvarı Safir Plaza No:298-A Batman
Cumhuriyet Caddesi No:12 Bayburt
Yenidoğan Mah. Abdi İpekçi Cad. No:24/A Bayrampaşa/İstanbul
Beşevler Mahallesi, Koçman Caddesi, No:407 Nilüfer/Bursa
Barbaros Bulvarı No: 97/1 Beşiktaş/İstanbul
Büyükşehir Mahallesi Belediye Caddesi Beylicium Alışveriş Merkezi No:9 Beylikdüzü/
İstanbul
Beytepe Mahallesi İrfan Gümüşel Cad. No:59 Beypazarı/Ankara
Evsat Mah. Şehit Mahmut Akşin Sokak No:33 Beyşehir/Konya
İstiklal Mahallesi, İstiklal Caddesi, No:69 Biga/Çanakkale
Kıbrıs Şehitleri Cad. Ataman İş Merkezi B Blok No:31 Bodrum/Muğla
Çarşı İçi Kayseri Cad. No: 1 Boğazlıyan/Yozgat
Akpınar Mah. İzzet Baysal Cad. No: 150 Bolu
Mustafa Kemal Cad. No:130/A Bornova/İzmir
İsmet İnönü Cad. No: 35 Bozüyük/Bilecik
Özmen Caddesi, Dumlupınar Mahallesi, No:14 Buca/İzmir
Konak Mahallesi, Süleyman Demirel Bulvarı, No:24 Bucak/Burdur
Konak Mah. Gazi Cad. No: 38 Burdur
Haşim İşçan Cad. Burçin 1 İşhanı No:8 Osmangazi/ Bursa
Fevzi Çakmak Mahallesi, Büsan Sanayi Sitesi KOSGEB Caddesi, No:4 Karatay/KONYA
Cemal Gürsel Cad. No: 59/A Cebeci Çankaya/Ankara
Büyük Kırım Mah. Atatürk Cad. Emniyet Müdürlüğü Bitişiği No: 325 Ceyhan/Adana
+90 212 - 436 04 88
+90 312 - 215 96 35
+90 212 - 542 76 46
+90 312 - 285 58 07
+90 266 - 245 89 00
+90 276 - 315 34 00
+90 266 - 714 66 64
+90 322 - 233 09 36
+90 312 - 442 20 35
+90 488 - 215 00 72
+90 458 - 211 96 91
+90 212 - 612 89 49
+90 224 - 443 63 84
+90 212 - 258 79 80
Şair Nabi Mahallesi, Recep Tayyip Erdoğan Bulvarı, 175.Sokak, No:56 Şanlıurfa
Kağıthane Caddesi No: 145 Çağlayan Kağıthane/İstanbul
Sedir Mahallesi, Gazi Bulvarı No:98/1-A-B Muratpaşa/Antalya
Mersinli Mahallesi, Fatih Caddesi, No:84 Konak/İzmir
Fevzipaşa Mah. Çarşı Cad. No:100 Çanakkale
Hoşdere Cad. No: 195/A Çankaya/Ankara
Atatürk Bulvarı Belediye Sarayı Altı No: 13/B Çankırı
+90 414 - 315 23 30
+90 212 - 233 56 13
+90 242 - 345 72 82
+90 232 - 486 19 89
+90 286 - 217 60 40
+90 312 - 440 60 39
+90 376 - 213 13 68
+90 212 - 872 13 19
+90 312 - 763 60 13
+90 332 - 512 49 50
+90 286 - 317 45 04
+90 252 - 313 54 61
+90 354 - 645 11 22
+90 374 - 213 62 63
+90 232 - 374 66 92
+90 228 - 314 01 40
+90 232 - 442 44 20
+90 248 - 325 02 20
+90 248 - 233 19 56
+90 224 - 224 15 90
+90 332 - 345 33 56
+90 312 - 362 01 68
+90 322 - 613 75 35
243
NO
NAME OF BRANCHES
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
Çarşamba
Çay
Çekmeköy
Çemberlitaş
Çerkezköy
Çivril
Çorlu
Çorum
Çubuk
Değirmendere/Trabzon
Demetevler
Denizli
Develi
Dikmen
Dinar
Diyarbakır
Dörtyol/Hatay
Dudullu
Düzce
Edirne
Edremit
Elazığ
Elbistan
Ellialtılar
Elmadağ
Emirdağ
Erbaa
Erciyes
Ereğli
Erenler/Sakarya
Erzincan
Erzurum
Esenyurt
Eskişehir
Etiler
Etimesgut
Etlik
Fatsa
Fener/Antalya
BRANCHES ADDRESSES
Orta Mah. Dr. Tevfik Türker Cad. No:6 Çarşamba/Samsun
Aşağı Mahalle, Cumhuriyet Caddesi, No:10-A Çay/Afyonkarahisar
Mimar Sinan Mahallesi, Mimar Sinan Caddesi, No:7/2, Çekmeköy/İstanbul
Yeniçeriler Cad. No: 23 Çemberlitaş - Fatih/İstanbul
Atatürk Cad. No: 42 Çerkezköy/Tekirdağ
Çatlar Mah. Cumhuriyet Cad. No:15 Çivril/Denizli
Omurtak Cad. No:136/1-2 Çorlu/Tekirdağ
İnönü Cad. No: 35 Çorum
Cumhuriyet Mahallesi Atatürk Bulvarı No: 4 Çubuk/Ankara
Sanayi Mahallesi, Devlet Karayolu Caddesi, No:89 Trabzon
Vatan Cad.(8.Cad.) No: 10/13-14 Demetevler Yenimahalle/Ankara
2. Ticari Yol No:70 Denizli
Harman mah. Aşık Seyrani Cad. No: 7 Develi/Kayseri
Dikmen Cad.No:294/5-6 Dikmen/Ankara
Cumhuriyet Cad. No: 38 Dinar/Afyonkarahisar
Akkoyunlu Cad. No:31 Bağlar/Diyarbakır
Numuneevler Mah. Çaylı Caddesi No:43 Dörtyol/Hatay
Yukarı Dudullu Mah. Alemdağ Caddesi, No:802 Ümraniye/İstanbul
Cedidiye Mah. Köprü Sok. No:1 Düzce
Talatpaşa Cad. No:10/B Edirne
Sıtkıpaşa Caddesi No:3 Edremit/Balıkesir
Çarşı Mahallesi, Hürriyet Caddesi, No: 271 Elazığ
İbrahim Karaoğlan Mey. Yeni Belediye Pasajı No: 2 Elbistan/Kahramanmaraş
İstiklal Caddesi, No:158/B Samsun
Cumhuriyet Cad. No:141/A Harbiye Şişli/İstanbul
Yenimahalle Arabacılar Sok. No:21 Emirdağ/Afyonkarahisar
Cumhuriyet Mh. Gazi Bulvarı No: 160-A Erbaa/TOKAT
Hacısaki Mah. Eski Sanayi Bölg. 4.Cad. No: 76 Kocasinan/Kayseri
Selçuklu Mah. Yeniçarşı Yolu No: 3 Ereğli/Konya
Erenler Mahallesi, Sakarya Caddesi, No:316/1-3 Erenler/Sakarya
Atatürk Mahallesi, Nerim Tombul Caddesi No:5 Erzincan
Bakırcılar Mah. Menderes Cad. Ömer Erturan İş Merkezi Zemin Kat Merkez/Erzurum
Doğan Araslı Bulvarı, No:90/B Esenyurt/İstanbul
Akçağlan Mah. Yunus Emre Cad. No:94 Odunpazarı/Eskişehir
Etiler Mahallesi, Nisbetiye Caddesi No:71/B Etiler Beşiktaş/İstanbul
İstasyon Mah. Tüzün Sok. No:45 Etimesgut/Ankara
Mestan Sokak 2/B Aşağıeğlence Etlik Keçiören/Ankara
Mustafa Kemal Paşa Mah., Hal Caddesi, No:16 Fatsa/Ordu
Çağlayan Mahallesi, Barınaklar Bulvarı, No:18 Muratpaşa/Antalya
TELEPHONE
+90 362 - 833 68 28
+90 272 - 632 40 49
+90 216 - 639 00 27
+90 212 - 516 54 50
+90 282 - 726 94 01
+90 258 - 713 10 56
+90 282 - 652 66 84
+90 364 - 212 57 06
+90 312 - 837 92 63
+90 462 - 325 85 90
+90 312 - 332 05 74
+90 258 - 264 87 27
+90 352 - 621 82 77
+90 312 - 478 25 85
+90 272 - 353 60 52
+90 412 - 228 70 81
+90 326 - 712 00 53
+90 216 - 508 10 81
+90 374 - 524 07 09
+90 284 - 212 00 13
+90 266 - 373 52 55
+90 424 - 218 10 06
+90 344 - 413 10 91
+90 362 - 201 00 86
+90 212 - 361 62 24
+90 272 - 442 72 01
+90 356 - 715 74 24
+90 352 - 320 74 90
+90 332 - 713 15 32
+90 264 - 240 12 55
+90 446 - 223 84 32
+90 442 - 235 74 81
+90 212 - 450 17 49
+90 222 - 221 96 17
+90 212 - 358 33 65
+90 312 - 245 56 94
+90 312 - 322 38 34
+90 452 - 423 62 56
+90 242 - 324 88 12
244
NO
NAME OF BRANCHES
114
115
116
117
118
119
120
Fethiye
Gaziantep
Gazibulvarı
Gaziosmanpaşa/Ankara
Gaziosmanpaşa/İstanbul
Gazipaşa
Gebze
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
Gebze Organize Sanayi
Gıda Çarşısı/İzmir
Giresun
Gölbaşı
Gönen
Göztepe
Gümüşhane
Gümüşsuyu
Güneşli
Hadımköy
Hatay/İzmir
Hayrabolu
Hopa
Iğdır
Ilgın
Isparta
137
138
139
140
141
142
143
144
145
146
147
148
149
150
İkitelli
İmes
İncesu
İncirliova
İnegöl
İpekyolu/Gaziantep
İskenderun
İstanbul
İstoç/İstanbul
İvedik Organize Sanayi
İzmir
İzmit
Kadıköy
Kadirli
BRANCHES ADDRESSES
Cumhuriyet Mah. Çarşı Cad.No:62 Fethiye/MUĞLA
Hürriyet Cad. No: 16 Şahinbey/Gaziantep
Akdeniz Mah. Gazi Bulvarı No:72/A Konak/İzmir
Uğur Mumcu Cad. No:51/A Gaziosmanpaşa Çankaya/Ankara
Eyüp Yolu Caddesi, No:16 Gaziosmanpaşa/İstanbul
Gazipaşa Bulvarı Seçkin Apt. No:39 Seyhan/Adana
Yeni Bağdat Cad. No:605/B-C Gebze/Kocaeli
Güzeller Mahallesi, Güzeller Organize Sanayi Bölgesi, Atatürk Bulvarı, Big Center 2/B No:13
Gebze/Kocaeli
Halkapınar Mah. A1202/6 Sokak No:40 Konak/İzmir
Hacımiktat Mahallesi, Alpaslan Caddesi, No:31 Giresun
Ankara Cad. No:78 Gölbaşı/Ankara
Kurtuluş Mah. Hüseyin Tümer Cad. Gönen/Balıkesir
Bağdat Cad. Sarıgül Sok.No: 38 Göztepe Kadıköy/İstanbul
Karaer Mahallesi, Atatürk Caddesi, No: 10/5 Gümüşhane
İnönü Cad. No:36/A Gümüşsuyu/İstanbul
Koçman Cad. Tekstil Market C Blok No: 36 Güneşli Bağcılar/İstanbul
Çakmaklı Mahallesi, Hadımköy Bağlantı Yolu, No:21 Kıraç Büyükçekmece/İstanbul
İnönü Caddesi, No:330/B Konak/İzmir
Hisar Mahallesi, Tekirdağ Caddesi, No:35 Hayrabolu/Tekirdağ
Merkez Kuledibi Mah. Turgay Ciner Cad. No:32 Hopa/Artvin
Atatürk Caddesi No:1 Iğdır
Hükümet Cad. No:85 Ilgın/Konya
Piri Mehmet Mah. Mimar Sinan Cad. No:46 Isparta
İkitelli Organize Sanayi Bölgesi, Atatürk Bulvarı, Botaş İş Merkezi, No: 102 Başakşehir/
İstanbul
Dudullu OSB. Mahallesi, İMES Sanayi Sitesi, E Blok, 501.Sokak, No:34 Ümraniye/İstanbul
Cumhuriyet Caddesi, No:7 İncesu/Kayseri
Prof. Dr. Türkan Saylan Caddesi, No:74 İncirliova/Aydın
Nuri Duğrul Cad. No: 11/A İnegöl/Bursa
Zeytinli Mahallesi, 79001 nolu Cadde, No:58/A Şehitkamil/Gaziantep
Ulucami Cad. Şirin İşhanı No: 10/1 İskenderun/Hatay
Kemeraltı Cad. Tophane İşhanı No: 46/A Tophane Beyoğlu/İstanbul
İSTOÇ Ticaret Merkezi, 2. Ada (3.Yol Sokak), No:1-3 Bağcılar/İstanbul
Ostim Mahallesi 1475. Sokak 1/A İvedik Organize Sanayi Bölgesi Yenimahalle/Ankara
Cumhuriyet Bulvarı No: 22/A Konak/İzmir
Karabaş Mahallesi Cengiz Topel Caddesi No:8 İzmit/Kocaeli
Kuşdili Cad. Efes İşhanı No: 16/18 Kadıköy/İstanbul
Savrun Mahallesi, Atatürk Caddesi, No:59 Kadirli/Osmaniye
TELEPHONE
+90 252 - 612 06 02
+90 342 - 231 00 24
+90 232 - 483 87 41
+90 312 - 446 81 96
+90 212 - 563 63 57
+90 322 - 458 58 58
+90 262 - 641 58 74
+90 262 - 751 49 32
+90 232 - 457 62 63
+90 454 - 212 40 40
+90 312 - 484 57 01
+90 266 - 763 16 91
+90 216 - 363 37 77
+90 456 - 213 60 64
+90 212 - 293 18 76
+90 212 - 657 74 52
+90 212 - 886 33 97
+90 232 - 250 43 63
+90 282 - 315 14 55
+90 466 - 351 59 48
+90 476 - 227 68 13
+90 332 - 881 20 82
+90 246 - 232 21 78
+90 212 - 671 60 71
+90 216 - 499 63 00
+90 352 - 691 26 26
+90 256 - 585 19 26
+90 224 - 711 17 37
+90 342 - 324 60 66
+90 326 - 613 15 80
+90 212 - 251 58 80
+90 212 - 659 60 51
+90 312 - 394 37 71
+90 232 - 441 48 16
+90 262 - 322 10 80
+90 216 - 346 22 24
+90 328 - 717 17 12
245
NO
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
NAME OF BRANCHES
Kahramanmaraş
Karabağlar
Karabük
Karacabey
Karadeniz Ereğli
Karaman
Karatay Sanayi
Kars
Karşıyaka
Kartal
Kastamonu
Kavacık
Kaynarca/İstanbul
Kayseri
Kazan/Ankara
Kazasker
Kazım Karabekir
Keçiören
Keşan
Kınık
Kırıkkale
Kırklareli
Kırşehir
Kızılay
Kilis
Konya
Konyaaltı
Kozan
Kozyatağı
Kumluca
Kurtköy
Kuşadası
Küçükbakkalköy
Küçükesat
Küçükyalı
Kütahya
Lara
Lüleburgaz
Malatya
BRANCHES ADDRESSES
Trabzon Cad. Emek İşhanı Altı No:4/A Kahramanmaraş
Karabağlar Mah. Yeşillik Cad. No:399 Konak/İzmir
Bayır Mahallesi, Fevzi Fırat Caddesi, No:95 Karabük
Bursa Cd. No:51/D Karacabey/Bursa
Müftü Mahallesi, Erdemir Caddesi, No:64 Ereğli/Zonguldak
Tahsin Ünal Mah. İsmetpaşa Cad. No: 11 Karaman
Karatay Sanayi Sitesi, Işık Mahallesi, Saka Sokak, No:43 Selçuklu/Konya
Yusufpaşa Mah. Kazımpaşa Cad. No:85 KARS
Bahariye Mah. Dr. Orhan Alpyörük Sok. No:4/4A Karşıyaka/İzmir
Ankara Caddesi No:110/1-A Kartal/İstanbul
Cumhuriyet Cad. No: 26 Kastamonu
Kavacık Mah. Fatih Sultan Mehmet Cad. Universal Plaza N:36 Beykoz/İstanbul
Fevzi Çakmak Mahallesi, Cemal Gürsel Caddesi, No:119A Pendik/İstanbul
Kiçikapı Cad. No:14 Melikgazi/Kayseri
Atatürk Mahallesi, Ankara Bulvarı, No:71/B Kazan/Ankara
Şemsettin Günaltay Cad. No: 87 Kazasker Kadıköy/İstanbul
Kazım Karabekir Cad.Zemin Kat No:97/7 Çankaya/Ankara
Kızlar Pınarı Caddesi No:156 Keçiören/Ankara
Büyük Cami Mah. İsmail Saraç Cd. No:39 Keşan/Edirne
Belediye Caddesi, No:8 Kınık Kaş/Antalya
Cumhuriyet Cad. No: 31/A Kırıkkale
Karakaş Mahallesi, Kuyumcular Caddesi, No.16 Kırklareli
Yenice Mahallesi Atatürk Caddesi Uğurlu Apt. No:24 Kırşehir
Ziya Gökalp Cad. No: 3 Çankaya/Ankara
Şıhabdullah Mah., Cumhuriyet Caddesi, Şehitler Abidesi Sokak, No:1/B Kilis
İhsaniye Mah. Vatan Cad.No:21/A Selçuklu/Konya
Gürsu Mahallesi, Gazi Mustafa Kemal Bulvarı, No:61A Konyaaltı/Antalya
Arslanpaşa Mahallesi, Irmak Caddesi, No:13 Kozan/Adana
Bayar Caddesi, Rıza Çemberci İş Merkezi No:72 Kozyatağı Kadıköy/İstanbul
Bağlık Mahallesi Gödene Cad. No:45 Kumluca/Antalya
Şeyhli Mah. Ankara Cad.No:243 Kurtköy/İstanbul
Türkmen Mah. Atatürk Bulvarı Belvü Sitesi C Blok No:4/7 Kuşadası/Aydın
Kayışdağı Caddesi, No:131 Ataşehir/İstanbul
Tunalı Hilmi Cad. No: 61/A Küçükesat Çankaya/Ankara
Altıntepe Mah., Bağdat Caddesi, No:83 Küçükyalı Maltepe/İstanbul
Cumhuriyet Cad. No: 1 Kütahya
Şirinyalı Mah. Özgürlük Bulv. İsmet Gökşen Cad. No: 36/4 Lara/Antalya
İstanbul Cad. No: 20/A Lüleburgaz/Kırklareli
Fuzuli Cad.No:8 Malatya
TELEPHONE
+90 344 - 223 00 32
+90 232 - 264 16 64
+90 370 - 412 75 79
+90 224 - 676 13 08
+90 372 - 316 29 40
+90 338 - 213 15 51
+90 332 - 236 20 21
+90 474 - 212 03 35
+90 232 - 368 21 05
+90 216 - 306 62 00
+90 366 - 214 14 19
+90 216 - 680 16 20
+90 216 - 397 16 55
+90 352 - 222 58 36
+90 312 - 800 03 90
+90 216 - 463 21 82
+90 312 - 384 30 54
+90 312 - 381 12 24
+90 284 - 714 79 29
+90 242 - 845 49 00
+90 318 - 224 41 15
+90 288 - 212 95 21
+90 386 - 213 90 14
+90 312 - 435 99 36
+90 348 - 822 22 08
+90 332 - 322 74 66
+90 242 -228 33 14
+90 322 - 516 55 33
+90 216 - 368 62 70
+90 242 - 889 08 41
+90 216 - 378 66 17
+90 256 - 612 86 71
+90 216 - 576 25 95
+90 312 - 425 61 66
+90 216 - 489 12 53
+90 274 - 223 64 31
+90 242 - 316 38 74
+90 288 - 417 11 12
+90 422 - 323 10 46
246
NO
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
NAME OF BRANCHES
Malkara
Maltepe E-5
Maltepe/Ankara
Maltepe/İstanbul
Manavgat
Manisa
Mardin
Marmaris
Maslak
Mecidiyeköy
Megacenter
Menemen
Ankara Kurumsal
Mersin
Mersin Hal
Merter
Merzifon
Milas
Muğla
Mustafakemalpaşa
Nato Yolu/Ankara
Nazilli
Nevşehir
Niğde
Niksar
Nişantaşı
Nizip
Ordu
Orhangazi
Ortaca
Osmaniye
Ostim
Ödemiş
Pazar/Rize
Pendik
Pınarbaşı
Polatlı
Porsuk
Pozcu
BRANCHES ADDRESSES
Camiatik Mahallesi, 14 Kasım Caddesi, No:67/15 Malkara/Tekirdağ
Sanayi Caddesi, No:13 Maltepe/İstanbul
G.M.K. Bulvarı No:101/A Maltepe Çankaya/Ankara
Bağdat Cad. No: 113 Maltepe/İstanbul
Antalya Caddesi No:43 Manavgat/Antalya
Gazi Mustafa Kemal Bulv. Anafartalar Mh. No: 1 Manisa
Yenişehir Mahallesi, Vali Ozan Caddesi, N:32/1 Mardin
Ulusal Egemenlik Cad. No. 46 Marmaris/Muğla
Maslak Mah. Ahi Evran Cad. Polaris Plaza No:21 Sarıyer/İstanbul
Büyükdere Cad. No:36/ A Mecidiyeköy/İstanbul
Kocatepe Mahallesi, Yağ İskelesi Caddesi, C-51 Blok, No:25/C, Bayrampaşa/İstanbul
Ertuğrul Caddesi, No:2 Menemen/İzmir
Korkutreis Mah. Hanımeli Sokak No:1 Sıhhiye Çankaya/Ankara
Hastane Cad. No: 8 Mersin
Yeni Hal Toptancılar Kompleksi J Blok No:1 Merkez/Mersin
Keresteciler Sitesi, Fatih Caddesi, No:30/A Merter Güngören/İstanbul
Harmanlar Cad. No: 6 Merzifon/Amasya
Hacı İlyas Mah. Menteşe Cad.No.36 Milas/Muğla
Emirbeyazıt Mah. Özer Türk Caddesi N:8 Muğla
Balıkesir Cad. Şekerci Sokak No:26/A-B-C Mustafakemalpaşa/Bursa
General Zeki Doğan Mahallesi, Natoyolu Caddesi No:10 Mamak/ Ankara
Hürriyet Cad. No:335 Nazilli/Aydın
Lale Caddesi No: 32 Nevşehir
Esenbey Mahallesi, Ayhan Şahenk Bulvarı, No:30/B Niğde
Gaziosmanpaşa Mh. Şehit Er Naci Yıldırım Cd. No:7 Niksar/Tokat
Valikonağı Cad. No: 80 Nişantaşı Şişli/İstanbul
Fevzi Paşa Mahallesi, Necip Mahmut Caddesi, No:82 Nizip/Gaziantep
Düz Mah. Süleyman Felek Cad. No: 40/A Ordu
Camiikebir Mahallesi, Garaj sokak, No:26 Orhangazi/Bursa
Şerifnaz Başoğlu Sok. No:19 Ortaca/Muğla
Alibeyli Mah. Dr. Ahmet Alkan Cd. No: 29 Osmaniye
100.Yıl Bulvarı No:32 Ostim/Ankara
Akıncılar Mah. Gazi Cad. No:30 Ödemiş/İzmir
Karadeniz Caddesi, No:66 Pazar/Rize
Ankara Caddesi No:112 Pendik/İstanbul
Kemalpaşa Mah. Çanakkale Cd. No: 96/B Pınarbaşı Bornova/İZMİR
Eti Cad. No: 17/B Polatlı/Ankara
İsmet İnönü Cad. (Doktorlar Cad.) No:38/A Eskişehir
Aydınlıkevler Mahallesi, Gazi Mustafa Kemal Bulvarı, No:394 Yenişehir/Mersin
TELEPHONE
+90 282 - 427 92 83
+90 216 - 518 31 21
+90 312 - 232 00 92
+90 216 - 441 23 81
+90 242 - 742 19 25
+90 236 - 231 55 11
+90 482 - 212 41 34
+90 252 - 413 77 40
+90 212 - 286 66 81
+90 212 - 288 74 70
+90 212 - 437 20 98
+90 232 - 832 78 78
+90 312 - 231 91 48
+90 324 - 238 19 71
+90 324 - 235 53 15
+90 212 - 637 80 60
+90 358 - 513 13 30
+90 252 - 513 77 25
+90 252 - 212 69 98
+90 224 - 614 18 02
+90 312 - 365 63 01
+90 256 - 312 21 12
+90 384 - 212 39 50
+90 388 - 232 35 25
+90 356 - 527 11 90
+90 212 - 231 44 52
+90 342 - 517 14 32
+90 452 - 225 01 98
+90 224 - 573 00 17
+90 252 - 282 86 50
+90 328 - 813 06 47
+90 312 - 385 25 25
+90 232 - 545 00 12
+90 464 - 612 49 90
+90 216 - 390 87 00
+90 232 - 478 65 20
+90 312 - 622 08 25
+90 222 - 221 17 33
+90 324 - 326 77 24
247
NO
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
NAME OF BRANCHES
Pursaklar/Ankara
Reşit Galip
Rize
Salihli
Samsun
Sanayi/Denizli
Sandıklı
Saray
Sarıgazi
Sefaköy
Serik
Seydişehir
Silifke
Silivri
Sincan
Siteler
Sivas
Sivas Caddesi/Kayseri
Soma
Söke
Suadiye
Sultanbeyli
Sultançiftliği
Sultandağı
Sultanhamam
Sungurlu
Susurluk
Şanlıurfa
Şarkikaraağaç
Şaşmaz
Şehitkamil
Şirinevler
Şirinyer
Şuhut
Tarsus
Taşbaşı
Taşköprü
Tefenni
Tekirdağ
BRANCHES ADDRESSES
Merkez Mahallesi, Sun Sokak, No:33/B Pursaklar/Ankara
Kazım Özalp Mahallesi, Reşit Galip Caddesi No:70/3 Gaziosmanpaşa Çankaya/Ankara
Tophane Mahallesi, Menderes Bulvarı, 210/A Rize
Mithatpaşa Mah. Mithatpaşa Cad. No:83/A Salihli/Manisa
Kale Mah. Gazi Cad. No:52 Samsun
İlbade Mahallesi, İzmir Bulvarı, No:173 Denizli
Ece Mah. Alaattin Sok. No: 25 Sandıklı/Afyonkarahisar
Ayaspaşa Mahallesi, Vize Caddesi, No:3/A Saray/Tekirdağ
Sarıgazi Mahallesi, Eski Ankara Caddesi, Saray Sokak, No:65 Ümraniye/İstanbul
Halkalı Cad. No: 158 Sefaköy Küçükçekmece/İstanbul
Merkez Mah. Atatürk Cad. N:170 Serik/Antalya
Hürriyet Cad. No:20/A Seydişehir/Konya
Pazarkaşı Mah. Menderes Cad. Adas İşhanı No:54 Silifke/Mersin
Ali Çetinkaya Caddesi No:13/A Silivri/İstanbul
Atatürk Mah. Çarşı İçi Sok. No: 8 Sincan/Ankara
Taşdelen Caddesi No:9/2 Siteler Altındağ/Ankara
Bankalar Caddesi 2. Park Sokak No:3 Sivas
Sivas Caddesi, No:145/A Kocasinan/KAYSERİ
Kurtuluş Mah. Hürriyet Bulv. No: 5 Soma/Manisa
Konak Mah. İstasyon Cad. No: 85/A Söke
Bağdat Cad. No:443/2 Suadiye Kadıköy/İstanbul
Mehmet Akif Ersoy Mah. Fatih Cad. 258/4 Sultanbeyli/İstanbul
50.Yıl Mahallesi, Eski Edirne Asfaltı, No: 514 B Sultangazi/İstanbul
Kayran Mah. Kocatepe Cad. No: 3 Sultandağı/Afyonkarahisar
Bahçekapı Cad Rasimpaşa İşhanı No: 13 Bahçekapı Eminönü/İstanbul
Çorum Caddesi 2/A Sungurlu/Çorum
Han Mah. 5 Eylül Cad. Şakar Apt. No:28/A Susurluk/Balıkesir
Atatürk Bulv. No: 26 Şanlıurfa
Camikebir Mah., 1144 Ulu Sokak, No:16/A Şarkikaraağaç/Isparta
Bahçekapı Mahallesi, Sanayi Bulvarı no:14/B Şaşmaz, Etimesgut/Ankara
İncilipınar Mah. Muammmer Aksoy Bul. Dünya İş Mer. No:34/3-4 Şehitkamil/Gaziantep
Eski Londra Asfaltı E-5 Karayolu Üzeri No: 8 Şirinevler Bahçelievler/İstanbul
Cemil Şeboy Bul.No:166/A Buca/İzmir
Afyon Cad. Eski Belediye Saray Altı Şuhut/Afyonkarahisar
Mersin Cad. Halitaslan İşhanı No: 8/A Tarsus/Mersin
Belediye İş ve Kültür Merkezi Altı Eskişehir
Tabakhane Mah. Atatürk Cad. No: 22/A Taşköprü/Kastamonu
Cumhuriyet Caddesi, No:28 Tefenni/Burdur
Çınarlı Mahallesi, Köprübaşı Caddesi, No:10 Süleymanpaşa/Tekirdağ
TELEPHONE
+90 312 - 527 64 22
+90 312 - 446 07 78
+90 464 - 213 00 25
+90 236 - 714 78 75
+90 362 - 431 70 40
+90 258 - 371 31 44
+90 272 - 515 12 05
+90 282 - 768 72 33
+90 216 - 622 68 75
+90 212 - 580 24 27
+90 242 - 722 95 03
+90 332 - 582 57 37
+90 324 - 714 00 96
+90 212 - 729 01 93
+90 312 - 270 75 68
+90 312 - 353 21 60
+90 346 - 224 84 10
+90 352 - 311 51 55
+90 236 - 613 13 57
+90 256 - 518 16 13
+90 216 - 368 77 60
+90 216 - 498 99 40
+90 212 - 594 01 24
+90 272 - 656 45 57
+90 212 - 512 16 23
+90 364 - 311 00 84
+90 266 - 865 18 90
+90 414 - 313 28 40
+90 246 - 411 39 68
+90 312 - 278 22 53
+90 342 - 215 26 71
+90 212 - 551 39 91
+90 232 - 438 47 33
+90 272 - 718 34 29
+90 324 - 614 17 51
+90 222 - 220 61 43
+90 366 - 417 11 27
+90 248 - 491 29 03
+90 282 - 263 08 65
248
NO
NAME OF BRANCHES
268
269
270
271
272
273
274
275
Tire
Tokat
Torbalı
Toros
Tosya
Trabzon
Turgutlu
Turhal
276
277
278
279
280
Tuzla Sanayi
Uludağ
Ulus
Uşak
Uzunköprü
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
Ümitköy
Ümraniye
Ünye
Üsküdar
Van
Vezirköprü
Yalova
Yalvaç
Yeni Sanayi
Yeniçubuk
Yenişehir/Ankara
Yenişehir/Bursa
Yeşilköy
Yıldızevler
Yozgat
Yüreğir
Zeytinburnu
Ziverbey
Zonguldak
Merkez
Gezici Şube
BRANCHES ADDRESSES
Kurtuluş Mahallesi, İsmail Taşlı Caddesi, No:25 Tire/İzmir
Gazi Osman Paşa Bulv. No: 183/A Tokat
Tepeköy Mahallesi, Ağalar Caddesi, Yaman Apartmanı No:24 Torbalı/İzmir
Turgut Özal Bulvarı Mahve Sığmaz Mah. Necati Gizer Apt. No:131/D Seyhan/Adana
Cumhuriyet Meydanı Caddesi No:34/A Tosya/Kastamonu
Kunduracılar Caddesi, No:74 Trabzon
Cumhuriyet Mah. Atatürk Bulvarı 248/A Turgutlu/Manisa
Cumhuriyet Cad. No: 16 Turhal/Tokat
İstanbul Deri Organize Sanayi Bölgesi Kazlıçeşme Caddesi Çarşı Kompleksi No:5/25-26
Zemin Kat Tuzla/İstanbul
Yenikaraman Mahallesi, Sanayi Caddesi, No:150/57 Osmangazi/Bursa
Rüzgarlı Sok. No:15 Ulus Altındağ/Ankara
İsmetpaşa Cad. No:53/A Uşak
Muradiye Mah. Gazi Cad. No: 66 Uzunköprü/Edirne
Prof.Dr. Ahmet Taner Kışlalı Mah. 2846 Sokak Dora Park Villaları No:2 C2-C3 Çayyolu
Yenimahalle Çankaya/Ankara
Alemdağ Cad. No: 111/5 Ümraniye/İstanbul
Hükümet Cad. No: 44/A Ünye/Ordu
Ahmet Çelebi Mahallesi Halk Caddesi No:16 Üsküdar/İstanbul
Cumhuriyet Cad. Mavi Plaza Karşısı Pulkar İş Merkezi Van
Fazıl Ahmet Paşa Mahallesi, Fazıl Mustafa Paşa Caddesi, No:75 Vezirköprü/Samsun
Yalı Caddesi No:15/A Yalova
Yeşil Çınar Bulv. No: 34 Yalvaç/Isparta
Yeni Sanayi, Zuhal Caddesi, 2 Sokak No:1 Kocasinan/Kayseri
Yeni Doğan Mahallesi, İstanbul Caddesi No:40/A Yeniçubuk Gemerek/Sivas
Mithatpaşa Cad. No:49/A Kızılay/Ankara
Cumhuriyet Caddesi No: 11/C Yenişehir/Bursa
İstasyon Cad. No: 21 Yeşilköy Bakırköy/İstanbul
Turan Güneş Bulvarı No: 56/1 Çankaya/Ankara
Aşağınohutlu Mahallesi, Sakarya Caddesi, No:8/B Yozgat
Kozan Caddesi, No:374 Yüreğir/Adana
Muammer Aksoy Cad. No:55 Zeytinburnu/İstanbul
Kayışdağı Cad. No:40 Ziverbey Kadıköy/İstanbul
Mithatpaşa Mh. Alemdar Cad. No:4/A Zonguldak
Eski Büyükdere Caddesi No:1 Kağıthane/İstanbul
Emniyet Evleri Mah. Eski Büyükdere Cd. No:1A
TELEPHONE
+90 232 - 511 21 32
+90 356 - 214 15 63
+90 232 - 855 55 20
+90 322 - 232 36 84
+90 366 - 313 55 90
+90 462 - 326 65 71
+90 236 - 312 00 06
+90 356 - 275 13 56
+90 216 - 394 84 83
+90 224 - 273 30 73
+90 312 - 309 14 90
+90 276 - 215 15 20
+90 284 - 513 29 09
+90 312 - 236 10 40
+90 216 - 443 31 64
+90 452 - 323 42 23
+90 216 - 391 56 44
+90 432 - 216 16 25
+90 362 - 646 15 10
+90 226 - 812 66 01
+90 246 - 441 50 93
+90 352 - 336 33 83
+90 346 - 654 88 85
+90 312 - 433 35 60
+90 224 - 773 01 59
+90 312 - 440 41 30
+90 354 - 212 51 80
+90 322 - 321 44 22
+90 212 - 679 54 60
+90 216 - 418 61 38
+90 372 - 253 14 69
+90 212 - 296 20 49
+90 212 - 319 70 00
ŞEKERBANK A.Ş.
Emniyet Evleri Mahallesi,
Eski Büyükdere Caddesi,
No: 1/1A, Kağıthane-İstanbul
Tel: 212 319 70 00
İstanbul Ticaret
Sicil Memurluğu
Ticaret Sicil No: 536793
ANNUAL REPORT 2015
This report has been published using recycled paper
and environment-friendly technologies.
FOR A SUSTAINABLE FUTURE, WE
SUPPORT INVESTMENTS THAT WILL
SAVE ENERGY AND INCREASE EFFICIENCY.
WITH EKOKREDİ, WE PROTECT NATURE
WHILE DECREASING OUR CUSTOMERS’
ENERGY COSTS.

annual report 2015

Transcription

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