Deutsche Bank A.Ş. Annual Report 2013 Deutsche Ba

Transcription

Deutsche Bank
Client Centricity
Sustainable Performance
Integrity
Deutsche Bank A.Ş.
Annual Report 2013
Our Values and Beliefs
Innovation
Discipline
Partnership
Our Values & Beliefs
Deutsche Bank operates by six core values. Our values show how we bring
our brand to life each and every day.
Integrity
§ We live by the highest standards of integrity in everything we say and do
§ We will do what is right – not just what is allowed
§ We communicate openly; we invite, provide and respect challenging views
Sustainable Performance
§ We drive value for shareholders by putting long-term success over short term gain
§ We encourage entrepreneurial spirit which responsibly balances risks and returns
§ We pursue lasting performance by developing, nurturing and investing in the best talent,
and by managing based on merit
Client Centricity
§ We earn our clients’ trust by placing them at the core of our organisation
§ We deliver true value by understanding and serving our clients’ needs best
§ We strive to pursue mutually beneficial client relationships in which the value
created is shared fairly
Innovation
§ We foster innovation by valuing intellectual curiosity in our people
§ We enable our clients’ success by constantly seeking suitable solutions to their problems
§ We continuously improve our processes and platforms by embracing new and better
ways of doing things
Discipline
§ We protect the firm’s resources by always thinking and acting like owners
§ We live by the rules and hold ourselves accountable to deliver on our promises – no excuses
§ We achieve operational excellence by striving to ‘get it right the first time’
Partnership
§ We build diverse teams to generate better ideas and reach more balanced decisions
§ We put the common goals of the firm before ‘silo’ loyalty by trusting, respecting and
working with each other
§ We act as responsible partners with all our stakeholders and regulators,
and in serving the wider interests of society
Contents
02
Message from the Chairman
and the CEO
1
Introduction
07
07
08
08
08
2
Management and
Corporate Governance
19
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27
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10
History of Deutsche Bank A.Ş.
Financial Highlights
Amendments to the Articles of Association
Extraordinary General Meetings in 2013
Shareholder Structure, Changes during the Year,
Qualified Shares and Management Shares
Associates
Deutsche Bank A.Ş. within the Banking Industry
Research and Development
Operations in 2013
Board of Directors
Senior Management
Independent Auditor
Committees
The Summary Board of Directors Report Presented to
the General Assembly
Human Resources Applications
Related - Party Transactions
Outsourced Services
Corporate Social Responsibility
3
Financial Assessment and
Risk Management
4
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Report of the Audit Committee
Management Declaration
Audits
Other Information Regarding Corporate Actions
Financial Assessment
Monitoring Targets
Risk Management Policies
Credit Ratings
Summary of Five - Year Financial Highlights
Annual Report Compliance Opinion
Independent Auditors’ Report,
Financial Statements and Disclosures
46
47
50
Independent Auditors’ Report
Unconsolidated Financial Report
Deutsche Bank
Annual Report 2013
Message from the Chairman and the CEO
02
Message from the Chairman
and the CEO
Peter Tils
Chairman of the Board of Directors
Ersin Akyüz
CEO
Dear Shareholders,
We look back on 2013 as a year when the economic recovery in
the world began to strengthen, albeit with a slow pace. In Europe,
economies seem to be on the track of recovery following an
18-month double-dip recession period, although the recovery
is still viewed as slow, uneven and fragile. In the US, the rate of
GDP growth has steadily improved through the year. In emerging
markets, economic expansion continued in 2013, but with a slower
pace than in prior years.
Turkish economy bounced back from the soft-landing in 2012. GDP
growth for 2013 is expected to materialise at 4.0%. However, the
current account deficit as percent of GDP is expected to increase to
7.9% in 2013 from 6.2% a year ago. On the monetary policy front,
Central Bank continued to apply monetary easing in the first half
of the year, decreasing the policy rate to 4.50% in May 2013 from
5.50% at the end of 2012. There were significant capital inflows in
anticipation of an investment grade upgrade by Moody’s, which
finally came in the middle of May. Soon after that, however, Central
Bank had to increase its average cost of funding as Turkish Lira
depreciated significantly on the back of the Fed signalling that
tapering would start soon and the exit is insight.
Deutsche Bank
Annual Report 2013
03
Inflation increased to 7.4% at end-2013 from 6.2% a year ago, due
to the strong pass-through of currency weakness. Following rising
political risks, rising inflationary risks and the pressure on Turkish
Lira as the country is viewed as being among the most vulnerable
to anticipated volatility in capital flows, Central Bank delivered a
significant tightening late in January, raising the policy rate by
550bps to 10%.
Trading environment was extremely challenging compared to 2012.
Given the developments mentioned above, the first half of the
year was characterised by a bullish background, whilst there was
a severe bear market during the second half. The benchmark T-bill
compound rates started the year at 6.18%, rallied to an all-time low
of 4.79% in the middle of May 2013 and finished the year at 10.10%.
Lending spreads continued to narrow on the back of continued
capital flows during the first half of the year and remained relatively
narrow for the most of the remainder of the year despite the overall
market weakness during the second half of the year.
In this unfavourable environment, our Net Income suffered to TL
2.1mn from TL 104.1mn in 2012. The decline was caused primarily
by sharp falls in our Trading income. Our Balance Sheet increased
from TL 1,297mn to TL 2,360mn. This was due to an increase in
our loan portfolio, in particular our foreign exchange denominated
loans which went up in TL terms due to around 24% depreciation
in TL against USD and EUR. Following this increase in our Balance
Sheet in general and Loans in particular, our Capital Adequacy
Ratio at year-end dropped to 24.8%, compared to 49.4% in 2012.
Despite the drop, we still have a very high capital adequacy ratio,
which we believe gives us ample room for further growth in our
balance sheet.
Deutsche Bank
Annual Report 2013
04
Our Trading business was not immune to the sudden turn in the
market and the gains of the first half were reversed to finish the
year with losses from Trading. Our Sales and Coverage platform
performed well to meet the financing and trading demands of our
financial and corporate clients. Because of the lending spreads
remaining tight for the most of the year, we were able to increase
our Lending volumes only in the last quarter of the year. As a result,
our revenues from Lending increased less than the increase in our
volumes. Our Custody business continued to add new clients and
became the market leader. Our Investment Banking Coverage and
Our Investment Banking Coverage and Advisory group performed
well, executing several sell side mandates including a highly
coveted mandate in the insurance sector. We are pleased to report
that in line with our medium term objectives, we were able to
increase our Fees and Commission Income by an impressive 25%.
On the Costs side, we continued to review and challenge our
operating platform to achieve operational excellence and further
efficiencies. We managed to keep the rise in our costs below the
inflation rate in 2013.
We continue to remain committed to our corporate social
responsibilities. We started disbursing on our educational support
for the victims of the Van Earthquake. The program provides
support for 15 primary school students until June 2014. Separately,
we continue our support for a primary school in a poor part of
Istanbul. Our staff continues to complement these efforts by active
involvement with the students in the school. These investments
strengthen the fabric of the society and help enhance the
environment in which we operate.
Looking ahead into the rest of 2014, the world economy is showing
signs of improvement on the back of a recovery in developed
economies, although some dangers to global financial stability
persist. European economy is also moving forward. On the other
hand, the outlook for emerging economies is mixed in the face of
headwinds from Fed tapering and domestic structural challenges.
Deutsche Bank
Annual Report 2013
05
On the domestic front, sustained pressure on the currency and
rising inflationary risks that could led to further tightening seem
to be the main challenges for the Turkey’s economy. Political
uncertainty is unlikely to be resolved before local elections in March
and possibly persist beyond that. Further noise on this front, or
renewed negative sentiment towards EM, would add to pressure
on the Lira notwithstanding some likely adjustment in the external
balance this year. We expect growth to dip this year to 2.2% as
tighter monetary conditions and reduced confidence begin to bite,
and year-end inflation to materialise at 8.0%. On the fiscal front;
a slippage is possible this year as we are heading to an 18-month
long election cycle, though we expect this to be modest. We do,
however, think the current account deficit will now dip a little below
6% of GDP in 2014. Financing this still relatively large deficit may be
challenging given the fragile sentiment towards emerging markets
in general and Turkey in particular.
We are very conscious of this highly challenging environment.
The trading conditions will be very difficult despite the high
levels of benchmark interest rates. The Fed tapering is causing
significant volatility across all emerging markets and the domestic
political calendar is very uncertain, given the upcoming local and
presidential elections. We expect the M&A environment to be also
negatively affected by the uncertainty. On the positive side, we
expect increased revenues from our lending activity, arising from
both increased volumes and higher spreads. We will continue to
seek further ways of improving our operational efficiencies. We are
very confident that we will deliver outstanding service to our clients
and sustainable value to our shareholders.
Peter Tils
Chairman of the
Board of Directors
Ersin Akyüz
CEO
1
Introduction
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08
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08
09
09
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Amendments to the Articles of Association
Extraordinary General Meetings in 2013
Shareholder Structure, Changes during the Year,
Qualified Shares and Management Shares
Associates
Operations in 2013
Deutsche Bank
Annual Report 2013
01 - Introduction
07
7
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Established as Türk Merchant Bank A.Ş. in 1987.
Renamed as Bankers Trust A.Ş. in 1997.
Continued operations as Deutsche Bank A.Ş. as of 2000 following
Deutsche Bank’s acquisition of Bankers Trust.
Having provided corporate banking services under an investment banking license
until 2004, Deutsche Bank A.Ş. applied to the Banking Regulation and Supervision
Agency (BRSA) for permission to accept deposits in an attempt to expand its
product range.
Obtained permission to accept deposits in October 2004.
Added corporate cash management and custody and settlement services to its
product portfolio in 2005.
Acquired Garanti Bank’s domestic custody services and became the second
largest custodian bank in 2007.
Received authorization to participate in Treasury auctions as a market-maker in
2013 as every year since 2005.
Starting from 2010 continued to act as a market maker for TL-USD, TL-EUR and
EUR-USD futures contracts (with cash settlement) on the Turkish Derivatives
Exchange in 2013.
Received factoring and forfeiting licenses in February 2012, in accordance with the
decision taken by the Banking Regulation and Supervision Agency.
The Bank has no branches.
The Trade Registry Number of the Bank is 244378.
The Central Registration System Number (MERSIS) of the Bank is:
0-8760-0487-2200015
Bank's web address: www.db.com.tr
Bank's E-mail address: muhaberat.ist@list.db.com
Bank's Head Office address: Esentepe Mahallesi Büyükdere Caddesi Tekfen Tower
No: 209 K: 17-18 Şişli 34394 Istanbul / Turkey
December 31, 2013
Summary Financial Highlights
(TL 000) Cash and Balances with the Central Bank
Trading Securities
Loans and Receivables
Total Assets Deposits Shareholders’ Equity Interest Income
Operating Profit
2013
228,523
816,019
904,029
2,359,630
592,956
426,707
158,897
4,132
Financial Ratios
(%) 2013
Capital Adequacy Ratio
Shareholders’ Equity/Assets 24.81
18.08
Off-Balance Sheet Items
(TL 000) 2013
Guarantees and Warranties
Commitments
Derivative Financial Instruments Items Held in Custody
187,418
3,985,252
1,976,829
45,377,511
Deutsche Bank
Annual Report 2013
01 - Introduction
Amendments to the Articles of Association, Extraordinary General Meetings in 2013,
Shareholder Structure, Changes during the Year, Qualified Shares and Management Shares,
Associates
08
Amendments to the Articles of
Association
Amendments were made in the Articles of Association of the Bank in order to
ensure their compliance with the Turkish Commercial Code and current legislation
and to simplify the same. These amendments were accepted during the Ordinary
General Meeting held on March 28, 2013, in accordance with the permission of the
Republic of Turkey, Ministry of Customs and Trade dated March 27, 2013 with no.
2287 and approval of the Banking Regulation and Supervision Agency, and publicly
announced in the Trade Registry Gazette dated April 19, 2013 with issue no. 8304.
Extraordinary General Meetings
in 2013
No Extraordinary General Meeting was held in 2013. During the Ordinary
General Meeting held on March 28, 2013, Articles of Association of the Bank
were amended, resignations of statutory auditors were accepted, independent
auditor was selected and Terms of Reference regarding operating principles and
procedures of the General Assembly Meetings were approved.
Shareholder Structure, Changes
during the Year, Qualified Shares
and Management Shares
All shareholders of Deutsche Bank A.Ş. are Deutsche Bank Group companies.
The Bank holds no privileged shares.
There was no change in the shareholder structure in 2013.
The Bank did not acquire its own shares.
The most recent shareholder structure is presented in the table below.
Chairman and Members of the Board of Directors, Members of the Audit
Committee, CEO and Assistant General Managers do not own any shares in the
Bank.
01.01.2013 - 31.12.2013
Shareholder
Number of Shares
Shares Capital (TL)
Deutsche Bank AG
1,349,999,730
134,999,973 Süddeutsche Vermögensverwaltung GmbH
68 6,8 DB Industrial Holdings GmbH
68 6,8 Nordwestdeutscher Wohnungsbauträger GmbH
67 6,7 DB Capital Markets (Deutschland) GmbH
67 6,7 Total
1,350,000,000 135,000,000
Associates
The Bank does not have any associates, either directly or indirectly.
Share (%)
99,99
<1
<1
<1
<1
100
Deutsche Bank
Annual Report 2013
01 - Introduction
09
Deutsche Bank A.Ş. within the
Banking Industry
Operating in Turkey since 1987, leveraging the strong global banking network of
its parent company Deutsche Bank AG, Deutsche Bank A.Ş. is primarily focused on
corporate banking. Offering its corporate banking services with a workforce of 110
employees, Deutsche Bank A.Ş. is the Istanbul based subsidiary of Deutsche Bank
Group, which has approximately 100,000 employees and EUR 1.649 billion in total
assets (as of December 2013) throughout the world. Deutsche Bank A.Ş. targets the
highest levels of quality in all product and service segments in which it is active,
and strives to be the first or second choice for clients.
The assets of Deutsche Bank A.Ş. primarily consist of a treasury bill and
government bond portfolio held for trading purposes. Consequently, the Bank
has a significantly lower ratio of risk-weighted assets compared to the rest of the
sector. Off balance sheet forward foreign currency transactions are also one of the
Bank’s main areas of operation. The bulk of the Bank’s profit is generated from
interest income from securities.
In 2013, the Bank secured a 3% market share in the outright purchases and
sales market for bonds and bills and over-the counter fixed income securities
transactions. The Bank maintained its 2% market share in total foreign currency
vs. Turkish lira transaction volume. Commercial banking is an area in which
Deutsche Bank A.Ş. plans to be more actively involved in the upcoming period.
The Direct Securities Services, which operates under the Global Transaction
Banking, performed very successfully and became the market leader with new
clients in 2013 with a total market share of 47% in assets under custody. Deutsche
Bank A.Ş. selects its clients through an especially diligent evaluation process. The
Bank’s client portfolio consists of low-risk domestic and foreign companies. The
Bank’s high customer cash credit risk concentration is due to its limited number of
conscientiously selected clients. Deutsche Bank A.Ş. has a relatively high capital
adequacy ratio compared to the sector average.
Deutsche Bank A.Ş. selects its clients through an especially diligent evaluation
process.
The Bank’s client portfolio consists of low-risk domestic and foreign companies.
The Bank’s high customer cash credit risk concentration is due to its limited
number of conscientiously selected clients.
Deutsche Bank A.Ş. has a relatively high capital adequacy ratio compared to the
sector average.
After many years of providing corporate banking services in Turkey under an
investment banking license, Deutsche Bank A.Ş. also began offering commercial
banking services in October 2004 after having been awarded a deposit taking
license. In 2005, a separate unit was established within the Bank to provide
settlement and custody services. Deutsche Bank A.Ş. continuously seeks to
enhance the quality and diversity of service. To this end, the Bank implements
system development studies required by its expanding services and cash
management products. Having started as an extension of its main business line in
2006, these services have continued effectively in 2013.
Combining its local experience with its main shareholder Deutsche Bank AG’s
global network, expertise and know-how in the areas of public offerings, block
sales and derivative products, Deutsche Bank A.Ş. continues to provide services in
the capital markets.
Deutsche Bank
Annual Report 2013
01 - Introduction
Operations in 2013
10
Operations in 2013
Deutsche Bank A.Ş. believes that Turkey, which has long stood out among
emerging economies, offers tremendous potential for growth and investment
in the years ahead. Corresponding to this perspective, the Bank is continuing its
expansion into Turkey with a primary focus on corporate banking.
The organization of Deutsche Bank A.Ş. is composed of Markets, Global Transaction
Banking, Corporate Finance and Support Functions.
Markets
The Markets business consists of two units; Trading and Research.
Trading: This unit conducts the structuring and sales transactions of debt and
money market instruments. It mediates the spot trading and derivatives trading
transactions of financial institutions, insurance companies and corporations in
foreign exchange and TL. The unit also conducts transactions of debt instruments,
treasury bonds, trading of bonds and derivative products. Moreover, it provides
clients with rate of exchange and interest risk management services by pursuing
risk management policies.
Deutsche Bank A.Ş. is a leader in the Turkish capital markets in terms of fixed
income products.
Research: The Research monitors macroeconomic and political developments
closely and provides the internal Bank units and its clients with information and
investment recommendations through daily, weekly and monthly periodic reports.
The Risk Management, Investment Banking and Capital Markets departments of
the Bank as well as the International Origination Department of Deutsche Bank rely
on the Research Department’s risk and return analyses for the Turkish economy in
their activities. The unit also actively shares its analyses with the sales units and
investors. Throughout 2013, the Research Unit focused on Central Bank monetary
policy, developments in the balance of payments, and the impact of instability in
foreign markets on Turkey. The Unit will continue to prioritise similar issues in 2014.
Global Transaction Banking
The Global Transaction Banking consists of three units providing services to
corporations and financial institutions; which are Direct Securities Services, Trade
Finance and Cash Management Corporates, and Cash Management & Trade FIs.
Direct Securities Services: With its Direct Securities Services Unit, established by a
highly competent and experienced team in 2005, Deutsche Bank A.Ş. has become
an extremely reputable bank, preferred by foreign investors for its custody services.
The Bank has a 45% market share among all the custodian banks that keep custody
of securities portfolios of foreign institutional investors.
Deutsche Bank A.Ş. continued to grow by expanding its current market share and
client portfolio in 2013. The Bank maintains its successful intermediary services by
increasing its transaction volume in a number of significant acquisitions, company
takeovers transfers and, especially, in stock lending transactions.
Deutsche Bank
Annual Report 2013
01 - Introduction
Operations in 2013
11
Executive Committee
From left to right: S. Mert Haracçı, Hakan Ulutaş, Özge Kutay, Ersin Akyüz, Pınar Çapanoğlu Altuğ, H. Sedat Eratalar, Mustafa Bağrıaçık, Cenk Esener
Deutsche Bank A.Ş. Direct Securities Services maintained their ‘TOP RATED’ status,
first granted in 2009, and scored even higher points in the annual customer poll
conducted by the Global Custodian magazine in 2013, as in previous years. In this
way, it has asserted its first class quality of client services. On the other hand, the
Global Finance Magazine also selected Deutsche Bank A.Ş. as the most successful
Direct Securities Services provider.
In 2014, Deutsche Bank A.Ş. plans to boost its market share and capture the leading
position in the market for clearing and custody activities through new products to
be included in its already wide product range and with customized applications
developed for foreign investors.
Trade Finance and Cash Management Corporates: This unit mediates cash
management circulation in domestic and international trade. Its specialist teams
have been providing services and consultancy to clients in Turkey since 2006 in the
fields of short and medium term trade financing and risk management. Deutsche
Bank A.Ş. reflects the additional value of 100 years plus experience in more than 70
countries of Deutsche Bank, its main shareholder, to its clients. Besides Conventional
Foreign Trade products, the bank has become a reliable partner in its clients’ banking
transactions. This is achieved by providing customized solutions in terms of Trade
Financing products and corporate cash management.
Deutsche Bank
Annual Report 2013
01 - Introduction
Operations in 2013
12
In Corporate Banking, enhancing the efficiency of resources, and, for this purpose,
setting the necessary targets and attaining them gain more and more importance
with each passing day. Although the competition is becoming fiercer, particularly
in corporate banking as a result of rising interest from foreign capital organizations
in the wake of Turkey’s upgrade to Investment Grade by a leading international
rating agency, as Deutsche Bank A.Ş. Trade Finance and Cash Management
Corporate Unit we develop suitable products which meet the needs of changing
conditions, and we have gradually raised our market share.
Cash Management and Trade Finance, Financial Institutions: As one of the leading
global banks in the field of Cash Management, Deutsche Bank continues to provide
services as one of the solution partners and main correspondents for Turkish
banks. Enjoying this position to provide cash management solutions to banks, the
unit performs US Dollar money transfers through Deutsche Bank Trust Company
Americas, New York; Euro transfers through Deutsche Bank AG, Frankfurt and
Sterling transfers through Deutsche Bank AG, London. Services provided by the
unit include Dollar and Euro based commercial and treasury money transfers,
liquidity management and sales and support services for related products. While
supporting clients with local, regional and global cash management solutions, the
unit aims to provide the most efficient and the best services through its extensive
global branch network.
Having been providing its clients with foreign trade services in more than 40
countries, Deutsche Bank offers solutions for foreign trade products and trade
financing through its experience, knowledge and wide variety of products in order
to maximize the level of its clients’ efficiency in foreign trade transactions. By
taking an active role in the guarantee transactions and in confirmation, financing
and discounting of letters of credit from Turkish financial institutions to those
abroad, the division performs the sales and marketing of similar products used in
the financing of global trade.
Through difficult times in financial markets and the global economy, the Bank has
maintained uninterrupted and consistent support for Financial Institutions. Thus,
it aims to always be the most reliable and preferred business partner of Turkish
banks by continuing to share its Cash Management and Foreign Trade products
with clients, as well as to provide innovative solutions and global experience.
Corporate Finance
Corporate Finance is composed of two units; Investment Banking Coverage &
Advisory; and Capital Markets & Treasury Solutions.
Investment Banking Coverage & Advisory: The unit is divided into two groups
as Non-Financial Corporates Coverage and Financial Institutions and provides
services to corporate and financial institutes.
Investment Banking Coverage & Advisory provides consultancy services to Turkish
companies as well as foreign companies seeking to invest in Turkey. These
consultancy services include company mergers and acquisitions, public offerings
and capital market and financing products.
Deutsche Bank
Annual Report 2013
01 - Introduction
Operations in 2013
13
In this respect, the Unit provided consultancy services to Yapı Kredi Bank during
acquisition of Yapı Kredi Sigorta A.Ş. and Yapı Kredi Emeklilik A.Ş. by Allianz AG
in 2013. This was the biggest acquisition in the insurance sector of Turkey so far.
We also provided consultancy services to Turkven, one of biggest private equity
funds acting in Turkey, during the acquisition of Provus Bilişim Hizmetleri A.Ş.,
a portfolio company of Turkven and the only independent payment solutions
provider in Turkey, by MasterCard.
Investment Banking Coverage & Advisory currently continues to work on some
financing, merger and acquisitions and public offerings, and aims to maintain its
pioneering position in the market in 2014 as it did in 2013 through developments in
ongoing projects.
Capital Markets & Treasury Solutions: The Unit is divided into three groups; NonFinancial Institutions, Financial Institutions and Corporate Banking, providing
services to corporations and FI’s.
- Non-Financial Institutions
The Non-Financial Corporates group offers Turkish companies, operating both in
Turkey and abroad, access to Deutsche Bank’s global platform and accumulation
of knowledge in the field of structured finance and risk management. By working
in cooperation with the Corporate Coverage, the Bank aims to comprehensively
understand every facet of its clients’ needs. The Bank is then able to efficiently
and rapidly generate appropriate solutions by working with the right teams
within Deutsche Bank.
- Financial Institutions
The FI Group is responsible for developing, marketing and selling products in
order to meet the requirements of all financial institutions, primarily those of
banks, brokerage houses and asset management companies based in Turkey.
It offers a platform to financial institutions for all financial product transactions,
especially exchange and fixed income securities. In addition the group also
offers long-term funding and structured products by tailoring the design of the
products for its clients, allowing them to benefit from the worldwide distribution
network and product know-how of Deutsche Bank. In 2014, the FI group aims to
continue to offer solutions that fully meet the requirements of its clients, to offer
them with global access and products and thus to remain a key strategic partner
for financial institutions.
Deutsche Bank
Annual Report 2013
01 - Introduction
Operations in 201
14
- Corporate Banking
The Corporate Banking aims to provide services in line with the priorities and
requirements of its local and multinational customer segment, so as to develop
strategic and longstanding relations with its prominent customers. In doing so,
the Group takes advantage of Deutsche Bank’s global know-how and maximizes
the coordination within different product groups, thus providing the most
effective solutions through exclusively designed financing techniques and
banking services for its clients. The Group’s target for 2014 will be to reinforce
its reputation as a reliable and permanent business partner by establishing
longstanding relations with its clients.
Support Functions
Support Functions include Human Resources, Risk Management, Legal, Finance,
Compliance and Internal Control, Internal Audit, Technology and Operations and
Corporate Real Estate and Services.
Human Resources: Human Resources Unit is responsible for the recruitment,
workforce planning, performance management, salary and fringe benefits
management, training and development processes in accordance with the Bank’s
strategies.
In the recruitment function, the unit ensures that the right people are employed to
pursue the Bank’s strategies, that they are qualified to create a corporate culture
and that they are appointed to the right positions. The Bank’s basic recruitment
policy is to hire professionals and to consider their potential to undertake bigger
responsibilities in the future by placing emphasis particularly on expertise in the
employment of new human resources.
Ensuring a work environment compliant with globally adopted Deutsche Bank
values, the unit operates with the objective of implementing fair and competitive
compensation and fringe benefits. In 2013, remuneration was based on global and
local practices.
Aiming to develop the personal and business capabilities of the personnel and
to keep their motivation high and loyalty strong, the Human Resources Unit also
plays an active role in identifying and meeting the training and career development
needs of the employees.
Throughout the Bank, the review of processes for each Unit and the undertaking
of necessary steps regarding the optimization of resources continued for the sake
of bringing about a more effective organizational structure. Training, rotation
and transfer opportunities were stepped up to promote the effective utilization of
bank personnel to ensure the sharing of information and expertise. In line with
its strategy, the structuring of certain units will be accelerated and plans for the
establishment of necessary teams will continue.
Risk Management: The Risk Management Unit is responsible for Bank-wide
implementation of the standards “regarding the risk-return structure of the Bank’s
cash flows and monitoring, controlling and, when necessary, modifying the nature
and level of the operations” that were devised and put into effect by the Board of
Directors within the framework of the BRSA regulations.
Deutsche Bank
Annual Report 2013
01 - Introduction
Operations in 2013
15
Operations Committee
From left to right: Ö. Yekta Bahadıroğlu, M. Kemal Şahin, C. Ertunç Ulak, G. Duygu Özcan, Özge Kutay, Ersin Akyüz, Günce Çakır İldun,
Nesrin Akyüz, Ayhan Eryiğit, Ali Doğrusöz
The Risk Management Unit is responsible for understanding risks and conducting
sufficient evaluations before entering a transaction, setting risk management
policies and practice methods based on risk management strategies, ensuring the
application and adaptation of risk management policies and practice methods,
maintaining quantified risks within limits and reporting the risk measurements
and risk monitoring results to the Board of Directors or Board Member responsible
from Internal Systems and senior management, on a regular and timely basis.
Legal: The Legal Unit provides legal consultancy services to the business
and support service divisions of Deutsche Bank A.Ş. and performs Corporate
Secretariat functions. It examines the compliance of contracts to which the Bank
is a party, as well as transactions and texts prepared by other divisions of the
Bank with the applicable laws, and expresses its opinions with respect to legal
implications to the divisions. The Legal Unit is also responsible for examining
the Bank’s new projects and recently developed products from a legal point of
view, and where necessary, for offering legally compliance alternatives. The Unit
also serves as the secretariat to Board of Directors, General Assembly and Audit
Committee meetings. The Legal Unit represents the Bank in lawsuits to which the
Bank is a party or appoints 3rd party law firms for this purpose.
Deutsche Bank
Annual Report 2013
01 - Introduction
Operations in 2013
16
In 2014, the Legal Unit aims to continue providing legal consultancy services
related to the finance sector and issues concerning the Bank, to provide legal
support for potential projects, and to conduct the necessary studies in order for the
Bank to be in compliance with the amended legislation.
Finance: The Finance Unit examines the Bank’s financial position through
its daily and monthly reports and informs the Executive Management on the
results. In order to adequately assess the performance of profit centers, the unit
prepares the financial statements for these units on a daily and monthly basis.
The unit is in charge of providing the information flow for the Bank's audit by
the independent auditor and regulatory bodies. The Finance Unit generates new
projects for Executive Management reporting and internal control systems and
supports other related projects, the unit prepares the Bank’s financial statements
and related disclosures in the required format and submits them to entities such
as the Banking Regulation and Supervision Agency, Central Bank of Turkey,
Undersecretariat of Treasury, Capital Markets Board and The Banks Association of
Turkey.
Compliance and Internal Control: Compliance and Internal Control conducts Bank's
compliance and internal control activities. Responsibilities of the unit in terms of
compliance are to ensure compliance of internal by-laws and applications and each
and every contract and similar legal text that may be binding on Deutsche Bank
with the related applicable laws, regulations, ethical principles and widely-accepted
Principles of Corporate Governance. Within this framework, it is responsible
from conducting the necessary research and preparing the necessary reports
regarding the businesses and transactions of the Bank's clients by taking the
relevant laws and regulations, especially the Banking Law no. 5411 and Law no.
5549 on Prevention of Laundering Proceeds of Crime as basis. It acts as a bridge
between business units. The unit provides recommendations about maintaining
the necessary legal compliance and cooperation in relations with the supervisory
and regulatory institutions determined by laws and regulations. The unit also
undertakes to give opinions and recommendations about the necessary issues to
the Board of Directors, Executive Management and business units, in compliance
with the related legislation.
The Compliance and Internal Control Unit is secondarily responsible for the
internal control activities after the unit, which is liable from the operation of all
control systems established within the body of Deutsche Bank A.Ş. in the first
place, primarily the financial and operational systems. The Unit maintains its
activities within the framework of “Compliance and Internal Control By-Law”
confirmed by the Board of directors.
The principle of separation of powers has been established for the necessary
control points within the Bank. The independence of the internal control process
from the functional activity units has been sufficiently assured and tasks and
responsibilities within the corporate structure have been separated on the basis
of function. Thanks to this organizational structure, measures within the internal
control system are implemented independently and objectively with the principle
of the separation of powers. The internal control system is regulated in compliance
with the types and levels of risks emerging in relation with the character and
content of the Bank’s activities.
Deutsche Bank
Annual Report 2013
01 - Introduction
Operations in 2013
17
Internal Audit: The Internal Audit Unit monitors the internal audit structure at all
Deutsche Bank A.Ş. units regularly and independently on behalf of the Board of
Directors. The Unit evaluates the unit’s transactions and practices on the basis of
targets, their compliance with internal/external regulations and their performance
within the framework of risk analysis, and focuses on assisting the Board of
Directors regarding the effectiveness of the corporate management.
The Unit checks that the Bank’s ethical standards have been fully implemented
by the business units. In addition to monitoring the compliance with internal
and external regulations, Internal Audit also conducts dynamic and effective
monitoring of the working environment at all business and support units under a
risk focused approach.
Technology and Operations: Improvements to support the diversified product
range and increasing transaction volume of the Bank and applications
strengthening our control structure were the points of focus for the Technology
and Operations Unit during 2013. In this respect, our Organizational structure
was configured based on the new needs, applications were developed and new
investments were made to boost the performance.
The Technology and Operations Units will focus on risk controlling, service
management and capacity expansion in 2014. In line with the Bank’s and its parent
company’s strategies, improvement operations in Product development, Risk
Management, Hardware and Software Consolidation and Operational Continuity
will go on.
Corporate Real Estate and Services: The Unit is responsible for providing a working
environment compliant with the necessary health and safety conditions in order
to sustain the activities of Deutsche Bank A.Ş. in a productive, safe and efficient
way. The unit is also responsible for the management of critical systems such as
construction, real estate, decoration, rent management, building management,
strategies for working spaces, security systems, office and building maintenance,
generators, UPS and mechanical and electrical systems, as well as conducting
corporate services such as insurance, providing physical archive space, car rental,
couriers and reception. The unit maintains its efforts to create a physical working
environment in compliance with Deutsche Bank's global values and standards in
order to better meet the internal client needs.
2
Management
and Corporate
Governance
19
22
24
24
27
28
28
29
30
Board of Directors
Senior Management
Independent Auditor
Committees
The Summary Board of Directors Report
Presented to the General Assembly
Outsourced Services
Deutsche Bank
Annual Report 2013
02 - Management and Corporate Governance
Board of Directors
19
Board of Directors
1
2
3
4
5
6
7
8
9
10
Board of Directors
Deutsche Bank
Annual Report 2013
20
Board of Directors
1
Peter Johannes Maria Tils
Chairman of the Board of Directors,
Chief Executive Officer of Central and Eastern Europe Region
Born in 1952, Peter Tils graduated from the University of Cologne with an MBA. He
has more than 36 years of experience in banking. Mr. Tils joined Deutsche Bank
AG in 1977 and has been serving as the Chief Executive Officer for the Central
and Eastern Europe Region at Deutsche Bank in Frankfurt since 2005. Tils was
appointed as the Chairman of the Board of Directors of Deutsche Bank A.Ş. on
November 21, 2012.
2
Ersin Akyüz
Member of the Board of Directors,
CEO
Born in 1961, Mr. Akyüz has a Bachelor’s and Master’s degree in Economics from
the London School of Economics in addition to a Master’s degree in Business
Administration from the University of Chicago. Assuming various positions both in
Turkey and abroad in his 25 - year banking career, Mr. Akyüz joined Deutsche Bank
A.Ş. in February 2008 as the CEO and Board Member.
3
Ahmet Arınç
Member of the Board of Directors,
Deutsche Bank AG, London
Markets Trading, Managing Director
Born in 1970, Mr. Arınç is a graduate of the College of Wooster, Department of
Economics. He has 22 years of experience in the banking industry and joined
Deutsche Bank in 1998. Serving as a Managing Director in charge of Emerging
Markets Trading at Deutsche Bank AG, Mr. Arınç joined the board of Deutsche
Bank A.Ş. in August 2000. Mr. Arınç has been serving as the Board Member since
September 2002.
4
Kaya Didman
Vice Chairman of the Board of Directors,
Chairman of Audit Committee
Born in 1962, Mr. Didman is a graduate of Boğaziçi University, Department of
Business Administration. Mr. Didman held senior positions in companies such
as Türk Ekonomi Bank, Baring Securities (London) and Morgan Stanley & Co. in
London. Appointed to the Board of Directors at Deutsche Bank A.Ş. in June 2007,
Mr. Didman has served as the Audit Committee Chairman since March 2008.
5
Hamit Sedat Eratalar
Member of the Board of Directors Responsible from Internal Systems
Born in 1952, Mr. Eratalar is a graduate of Ankara University, Department of
Economics and Public Finance. He worked as a partner at Arthur Andersen
between 1981 and 2001 and served as a founding partner at Eratalar Management
Consulting between 2001 and 2008. Serving on the Board of Directors at Deutsche
Bank A.Ş. since August 2001.
Board of Directors
Deutsche Bank
Annual Report 2013
21
6
Marco Kistner
Member of the Board of Directors
Born in 1964, Marco Kistner graduated with a degree in Banking Management
from the University of Frankfurt. With 30 years of banking experience, Mr. Kistner
has been working for Deutsche Bank AG since 1984. Currently serving as the
Global Director of Emerging Markets Credit Risk Management, Mr. Kistner was
appointed as a member of Board of Directors of Deutsche Bank A.Ş. in September
2012.
7
Satvinder Singh
Born in 1970, Satvinder Singh graduated with an MBA from the University of
Durham. Having worked for HSBC and Citibank before joining Deutsche Bank AG
in 2011, Mr. Singh is the Global Director of Direct Securities Services and Cash
Management FI. Mr. Singh was appointed as a member of the Board of Directors
of Deutsche Bank A.Ş. in July 2012.
8
Miklos Kormos
Born in 1962, Miklos Kormos holds a Master’s degree in Diplomatic Relations from
the University of Vienna and a PhD in Economics from the University of Budapest.
He joined Deutsche Bank AG in 2007 and currently serves as the Managing
Director responsible for Deutsche Bank AG’s Investment Banking operations in
Central Europe, Israel and Turkey. With 21 years of experience in banking, Mr.
Kormos was appointed as a member of the Board of Directors of Deutsche Bank
A.Ş. in November 2012. Mr. Kormos' duties as the Board Member ended due to his
demise on December 13, 2013.
9
Özge Kutay
Member of the Board of Directors responsible from Financial Reporting
Chief Operating Officer
Born in 1970, Ms. Kutay is a graduate of the Faculty of Business Administration at
Istanbul University. Starting her career at the Turkey Office of KPMG in 1993, Ms.
Kutay has 17 years of experience in banking. Having been employed by Deutsche
Bank A.Ş. since 1998, she served as an Assistant General Manager between 2001
and 2012 before being appointed as a member of the Board of Directors in October
2012.
10 Paul Antony Geradine
Member of the Board of Directors, Member of the Audit Committee
Born in 1960, Paul Geradine holds a Master’s degree in Modern History from
the University of Oxford. Having worked for UBS AG and HSBC before joining
Deutsche Bank AG in 2012, Mr. Geradine is currently responsible for Deutsche
Bank AG’s Corporate Banking Services Compliance Unit in the Europe, the Middle
East and Africa regions. Mr. Geradine was appointed as a member of the Board
of Directors and a member of the Audit Committee of Deutsche Bank A.Ş. in
December 2012.
None of the members of the Board of Directors is involved in transactions with
the Bank either in their own capacity or on behalf of third persons or engaged in
operations considered under the prohibition of competition.
Deutsche Bank
Annual Report 2013
Senior Management
22
Senior Management
Ersin Akyüz, Member of the Board of Directors, CEO:
Born in 1961, Mr. Akyüz has a Bachelor’s and Master’s degree in Economics from
the London School of Economics in addition to a Master’s degree in Business
Administration from the University of Chicago. Assuming various positions both in
Turkey and abroad in his 25-year banking career, Mr. Akyüz joined Deutsche Bank
A.Ş. in February 2008 as the CEO and Member of the Board of Directors.
Özge Kutay, Member of Board of Directors responsible from Financial Reporting Chief Operating Officer:
Born in 1970, Ms. Kutay is a graduate of the Faculty of Business Administration at
Istanbul University. Starting her career at the Turkey Office of KPMG in 1993, Ms.
Kutay has 17 years of experience in banking. Having been employed by Deutsche
Bank A.Ş. since 1998, she served as an Assistant General Manager between 2001 and
2012 before being appointed as a member of the Board of Directors in October 2012.
Ali Doğrusöz, Assistant General Manager - Technology and Operations:
Born in 1963, Mr. Doğrusöz graduated from North Carolina State University,
Department of Mechanical Engineering and received a master’s degree in Mechanical
Engineering from Middle East Technical University. With 25 years of professional
experience, Mr. Doğrusöz has been working at Deutsche Bank A.Ş. as the Assistant
General Manager since 2002.
Süleyman Mert Haracçı, Assistant General Manager - Markets:
Born in 1971, Mr. Haracçı graduated with both undergraduate and master’s degrees
from Marmara University, Department of Finance. Serving in the banking sector since
1996, Mr. Haracçı joined Deutsche Bank A.Ş. in 2000. He was appointed Assistant
General Manager in 2009.
Mustafa Bağrıaçık, Assistant General Manager - Corporate Finance, Investment
Banking Coverage and Advisory, Corporate Coverage:
Born in 1968, Bağrıaçık holds a Bachelors degree from the Mechanical Engineering
Faculty of Istanbul Technical University, a Masters in Finance from Boston College,
and a Masters in Management from Suffolk University. Throughout his 19 - year
banking career, Bağrıaçık has undertaken various posts both in Turkey and abroad.
Bağrıaçık was appointed as Assistant General Manager in October 2012.
Hakan Ulutaş, Assistant General Manager - Global Transaction Banking, Direct
Securities Services:
Born in 1965, Mr. Ulutaş is a graduate of Istanbul University, Department of Business
Administration and holds a master’s degree in Business Administration from
Marmara University as well as a master’s degree in Management from North Carolina
State University. Mr. Ulutaş spent 21 years of his 24-year professional career in the
banking sector. Hakan Ulutaş has been with Deutsche Bank A.Ş. since 2004. Ulutaş
was appointed as the Assistant General Manager in October 2012.
Cenk Esener, Assistant General Manager - Global Transaction Banking, Trade Finance
and Cash Management Corporates:
Born in 1970, Mr. Esener graduated from Eastern Mediterranean University, in the
Department of Economics. Having served for 17 years in similar positions in various
banks, he joined Deutsche Bank A.Ş. in August 2009, and was appointed as Assistant
General Manager in October 2012.
Hüseyin Hüsnü Okvuran, Managing Director - Corporate Finance, Investment Banking
Coverage and Advisory, FI Coverage:
Born in 1972, Mr. Okvuran graduated with a Bachelor’s degree from the Faculty of
International Relations and Economics at Yale University. Throughout his 20-year
banking career, Okvuran has undertaken various positions in the investment-banking
sector abroad. Okvuran took up his position as director responsible for Turkey, the
Middle East and South-eastern Europe at the Deutsche Bank Investment Banking
Services, Financial Institutions Group in August 2011.
Pınar Çapanoğlu Altuğ, Director - Global Transaction Banking,
Cash Management and Trade Finance, FIs:
Born in 1977, Mrs. Çapanoğlu graduated from the Middle East Technical University
with a degree from the Department of Economics. Serving in the banking sector since
1999, Mrs. Çapanoğlu joined Deutsche Bank A.Ş. in 2008.
Deutsche Bank
Annual Report 2013
Senior Management
23
Ali Cem Cansu, Director - Corporate Finance,
Capital Markets and Treasury Solutions, Corporate Banking:
Born in 1972, Mr. Cansu graduated from the Department of Political Science and
Public Administration in Middle East Technical University Administrative Sciences.
Mr. Cansu holds an Executive MBA degree from Koç University from 2007 and has a
total of 17 years of banking experience mainly in the fields of Corporate Banking and
Trade Financing. He has been providing services for Deutsche Bank A.Ş. since March
2010.
Orhan Özalp, Vice President - Corporate Finance, Capital Markets and Treasury
Solutions, Financial Institutions:
Born in 1982, Mr. Özalp graduated with a Bachelor’s degree from the Economics
and Business Administration Departments at Koç University. Having worked at
the Trading Unit for Deutsche Bank A.Ş. since 2006, Özalp has been serving as the
Manager in charge of Financial Institutions since 2011.
Özcan Yekta Bahadıroğlu, Director - Internal Audit:
Born in 1969, Mr. Bahadıroğlu is a graduate of Middle East Technical University,
Department of Economics and holds an MBA from RSM Erasmus University. Working
in the banking industry since 1996, he joined Deutsche Bank A.Ş. in 2002. Mr.
Bahadıroğlu holds CIA (Certified Internal Auditor) and CISA (Certified Information
Systems Auditor) certificates.
Mustafa Kemal Şahin, Director - Compliance and Internal Control:
Born in 1970, Mr. Şahin is a graduate of Middle East Technical University, Department
of Economics and has an MBA from Warwick Business School. Working in the
banking sector since 1992, Mr. Şahin joined Deutsche Bank A.Ş. in 2005 and was
appointed as the Money Laundering Reporting Officer of the Bank. Mustafa Kemal
Şahin is also appointed as Anti-Money Laundering Officer since April 1, 2011.
Cenk Ertunç Ulak, Director - Risk Management:
Born in 1976, Ulak holds a Bachelors degree in Management from Boğaziçi University
and a Masters in Management from Koç University. Working in the banking sector
since 1999, Ulak joined Deutsche Bank A.Ş. in 2011.
Günce Çakır İldun, Director - Legal:
Born in 1977, Mrs. İldun is a graduate of Ankara University, Faculty of Law and holds
a Master of Laws (LL.M.) degree from State University of New York, Buffalo. Günce
Çakır İldun has 14 years of professional experience, 13 of which were in the banking
sector. Mrs. İldun has been with Deutsche Bank A.Ş. since December 2006.
Ayhan Eryiğit, Vice President - Human Resources:
Born in 1972, Eryiğit holds an undergraduate degree in business administration
from Istanbul University and an MBA from Yeditepe University. Eryiğit started his
professional career in 1996 and has been working in human resources field of the
banking sector since 1998. Eryiğit joined Deutsche Bank A.Ş. in 2013.
Gonca Duygu Özcan, Vice President - Global Logistic Services:
Born in 1972, Mrs. Özcan is a graduate of Istanbul Technical University, Department
of Architecture and holds an MBA from Istanbul Bilgi University/Manchester Business
School. She has 21 years of professional experience, 18 of which are in the banking
sector. Mrs. Özcan joined Deutsche Bank A.Ş. in 2006.
Nesrin Akyüz, Vice President - Finance:
Born in 1975, Nesrin Akyüz graduated from the Middle East Technical University with
a degree from the Department of Business Administration. Having gained auditing
experience in various banks since 1997, Akyüz joined Deutsche Bank A.Ş. in 2006.
Deutsche Bank
Annual Report 2013
Independent Auditor
Committees
24
Independent Auditor
During the Ordinary General Assembly meeting of the Bank in 2013, statutory
auditors of the Bank resigned and in the same meeting held on March 28, 2013,
Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. was selected
as the independent auditor of the Bank.
Committees
Audit Committee
Kaya Didman, Chairman
Paul Antony Geradine, Member
The Audit Committee was established on October 31, 2006, pursuant to the Board
of Directors Resolution No. 48/6. The Audit Committee convened 17 times during
the 2013 fiscal year.
Assets and Liabilities Committee (ALCO)
Ersin Akyüz, Chairman
Özge Kutay, Member
Cenk Esener, Member
Hakan Ulutaş, Member
Joachim Bartsch, Member
S. Mert Haracçı, Member
Cenk Ertunç Ulak, Member
The ALCO is responsible from analyzing the Bank's future capital requirements by
overseeing the structure of the Bank's assets and liabilities, and evaluating riskbearing assets, liquidity and market risk. The ALCO convenes quarterly under the
presidency of the Bank’s CEO. During the 2013 fiscal year, all committee meetings
were attended by all members either in person or via teleconferencing.
Executive Committee (EXCO)
Özge Kutay, Member
Cenk Esener, Member
Pınar Çapanoğlu Altuğ, Member
H. Sedat Eratalar, Member
Mustafa Bağrıaçık, Member
The Executive Committee meets once a month for a number of purposes including
Deutsche Bank's global strategies to be followed in Turkey, generating ideas
for the mutual development of coordination and new business ideas among
the executive units established in Turkey, in addition to exploring cross-selling
opportunities, coordination with the infrastructure units and assessing any risks
regarding the reputation of Deutsche Bank’s franchise.
Deutsche Bank
Annual Report 2013
Committees
25
Operations Committee
Özge Kutay, Chairman
Ali Doğrusöz, Member
Mustafa Kemal Şahin, Member
Ö. Yekta Bahadıroğlu, Member
G. Duygu Özcan, Member
Ayhan Eryiğit, Member
Günce Çakır İldun, Member
Cenk Ertunç Ulak, Member
Nesrin Akyüz, Member
The Operations Committee meets on a weekly basis. The Committee is a platform
where all Operations, Support and Control Units discuss the developments,
changes and problems regarding the operations of the Bank, produce solutions
and organize the effective utilization and allocation of resources. The Committee
meeting minutes are reported to the CEO and the Board Member responsible from
the Internal Systems.
Personnel Committee
Özge Kutay, Member
Ayhan Eryiğit, Member
Ali Doğrusöz, Member
Cenk Esener, Member
Mustafa Bağrıaçık, Member
The Personnel Committee is responsible for setting up the necessary platforms
for establishing, implementing, discussing and modifying personnel policies;
evaluating promotion recommendations up to the Vice President level; organizing
training and development tasks that have Bank-wide relevance; and implementing
the benefits to be provided to the personnel. The Committee meets once a year
or when deemed necessary by the Committee Chairman or the Human Resources
Unit. Human Resources represent units that are not self-represented in Committee
meetings.
Reputational Risk Committee
Ahmet Arınç, Member
Özge Kutay, Member
M. Kemal Şahin, Member
Sancar Tomruk, Member
Cenk Esener, Member
Günce Çakır İldun, Member
Clients, transactions and other matters that are deemed to be of potential risk
to the Bank’s reputation are assessed at the Reputational Risk Committee. The
Reputational Risk Committee offers recommendations to the related units on
whether the Bank should accept the transactions or clients under consideration.
The Committee meets under the presidency of the CEO when deemed necessary.
The Compliance and Internal Control Director undertakes the duty of Secretary of
the Committee.
Deutsche Bank
Annual Report 2013
Committees
26
Credit Committee
Özge Kutay, Member
The Credit Committee was established to allocate credits under the authority
delegated to the committee by the Board of Directors’ decision No. 84 dated
December 13, 2010. The Committee takes loan decisions within the limits
determined for itself, and by determining the allocation conditions. The frequency
of Credit Committee meetings is arranged as per necessity, but no less than twice a
month.
Risk Management Meetings
Weekly meetings on “Market Risk” are held upon participation of the Board Member
responsible from Internal Systems, Head of Markets Unit and Head of Deutsche Bank
A.Ş. Risk Management Unit. If it is needed, General Manager is also invited to these
meetings.
The objective of these meetings is to review the developments in the economy, (FX
rates, Interest Rates etc.) discuss the position of the bank in terms of Government
Bond portfolio and bank’s FX position, (if any) and check whether the bank is within
the Bank Limits for Market Risk (like PV01, the effect of 1 basis change in interest rates
to the Bank’s P/L). Stress test results are also discussed in these meetings before they
are submitted to the Board of Directors for approval.
It was also resolved to convene monthly Risk Management meetings where Market
Risk, Operational Risk and Credit Risk related matters will be discussed. Board
Member responsible from Internal Systems, COO, Head of Markets Unit, Head of
Internal Control and Head of Deutsche Bank A.Ş. Risk Management Unit participate in
these meetings. If it is needed, General Manager is also invited to these meetings.
The objective of these meetings is to review the developments in the economy, to
discuss all kinds of credit, market or operational risk related matter and to check
whether the bank is within the Bank Limits. Results of the stress test regarding credit,
market and operational risk are also discussed in these meetings before they are
submitted to the Board of Directors for approval.
Participation of Board Members and Committee Members in Meetings
The Board of Directors meets at least once a month in accordance with the Bank’s
Articles of Association and governing legislation to oversee matters related to the
Bank and to make decisions (within the scope of its duties and responsibilities). When
deemed necessary, the Chairman of the Board of Directors also calls for meetings.
During 2013, members participated in Board meetings regularly, conforming to the
criteria for a quorum to convene and make decisions.
The Audit Committee meets at least once a month. In principle, Committee members
participate in all meetings. However, in the event that they are not present at the
Bank, due to business travel arrangements or other reasons, they participate through
teleconferencing to present their opinions and suggestions regarding agenda items.
In 2013, the Committee and Council Members participated in Committee meetings
regularly, conforming to the criteria to form a quorum to convene and arrive at
decisions.
Deutsche Bank
Annual Report 2013
The Summary Board of Directors Report Presented to the General Assembly
27
Transactions conducted by Members of the Board of Directors with
the Bank
Pursuant to the permission granted by the Bank's General Assembly, none of
the members of the Board of Directors is involved in transactions with the Bank
either in their own capacity or on behalf of third persons or engaged in operations
considered under the prohibition of competition.
Financial Benefits of the Senior Executives
In the current period, the total benefits allocated to senior executives such as
Chairman of the Board of Directors, members of the Board of Directors, the CEO
and the Assistant General Managers amounting to TL 17.172 thousands and
expenses such as the transportation and accommodation of senior executives
amounting to TL 531 thousands.
The Summary Board of Directors
Report Presented to the General
Assembly
As of December 31, 2013, the Bank’s total assets amounted to TL 2,359,630
thousands, increased by 82% compared to the previous year. The main reason of
the increase is the increase in loans.
Total loans increased by 137% from TL 381,905 thousands at the end of 2012 to TL
904,029 thousands by the end of 2013. All loans are short-term.
Total deposits amounted to TL 592,956 thousands at the end of 2013, implying 38%
growth over the TL 430,740 thousands at the end of 2012. This growth was largely
driven by the increase in banks deposits.
Items held in Custody grew by 10% from TL 41,325,502 thousands at the end of
2012 to TL 45,377,511 thousands at the end of 2013.
Off-balance sheet items increased from TL 3,401,449 thousands at the end of 2012
to TL 6,149,499 thousands at the end of 2013 due to the trading derivative financial
instruments and commitments.
By the end of 2013, the Bank’s net profit after taxes was TL 2.087 thousands.
The Bank continues to operate at high levels of profitability and strengthens its
equity. The Bank commands a high level of liquidity which is sufficient to meet its
debts, and a capital adequacy standard ratio well in excess of the minimum rate
set by the related regulations.
Information on Dividend Distribution Policy
The allocation and the distribution of the net profit are decided at the Deutsche
Bank A.Ş. shareholders’ Annual General Assembly. Since the Annual General
Assembly concerning the 2013 financial year had not been held as of the date of
this Report, no decision has yet been taken on the distribution of dividends.
In the Bank’s Annual General Assembly held on March 28, 2013, out of the TL
104,107 thousands net profit generated in 2012 after deferred tax assets, a total of
TL 5,190 thousands was allocated to 1st legal reserves, TL 90.261 thousands was
allocated to the shareholders as dividend, TL 8.351 thousands was reserved as 2nd
legal reserves out of paid and distributed dividend; whereas TL 305 thousands was
allocated to Extraordinary Reserves.
Deutsche Bank
Annual Report 2013
28
The training needs of employees are determined essentially based on the
performance evaluation process and with the cooperation of department managers
and Human Resources. In addition to local training and development programs,
the Bank also takes advantage of the global opportunities presented by Deutsche
Bank. Considering development of talents necessitated by working internationally
important, Deutsche Bank offers its employees the services of domestic and
foreign training companies for personal development training as well as technical
training in line with their needs.
Performance evaluation and goal setting are carried out online in computer
environment at certain times of the year. Within this scope, the process continues
with the managers’ feedback after the employee self-evaluations are received.
The results of the performance evaluations are used in career planning and to
determine training and development needs and compensation strategies.
Our “Diversity at Work” week was held between 11th and 15th November 2013 and
included a meeting entitled “Working and Communicating in Different Cultures”.
As of December 31, 2013, Deutsche Bank A.Ş. had 110 employees. Of the Bank’s
employees, 67% are university graduates and 3% are high school graduates while
30% hold a Masters and/or a PhD.
Within the scope of its activities, the Bank enters into various transactions with
Group companies. These transactions are conducted at market prices and for
fully commercial purposes. The resulting profit/loss is reflected in the income
statement.
The related party transactions of Deutsche Bank A.Ş. are reported in detail in the
notes to the financial statements included in this annual report.
The Bank did not take part in any legal transactions with the controlling Company
or with any party related to the controlling Company and/or with the direction of
the controlling Company for the benefit of the controlling Company or its related
parties. Since banking regulations and market conditions are taken into account
as far as the relations with the Group companies are concerned, measures are
neither taken nor specifically avoided to be taken for the benefit of the controlling
Company or its related parties in the past fiscal year.
Deutsche Bank
Annual Report 2013
Outsourced Services
29
Outsourced Services
The business lines and names of the entities that we have procured support
services from in 2013 are listed below pursuant to Regulation on Bank's
Procurement of Support Services.
Outsourcing
Companies
Business Lines of
Outsourced Services
Explanation of
the Service
Securverdi Güvenlik
Security
Security services in the office,
Hizmetleri A.Ş.
building and their extensions,
transportation of cash and securities
Akbasım Matbaacılık ve
Operations
The secure and timely printing of
Ticaret Ltd. Şti.
check books in accordance with legal requirements as to form
JCI
Correspondence
Correspondence Services
BİS Çözüm Bigisayar ve Information Systems
Main Banking System
Entegrasyon Hiz. ve Tic. A.Ş.
Global Bilişim Bilgisayar Yazılım
Information Systems
Technical support and maintenanceDanışmanlık San. ve Tic. Ltd. Şti.
EFT/EMKT web interface development
and maintenance
Dataassist Bilgi Teknolojileri A.Ş.
Human Resources
Payroll Services
Manpower İnsan Kaynakları Ltd. Şti.
Human Resources
Human Resources Services
Deutsche Bank AG
Information Systems
Technical support and maintenanceSMARAGD
suspicious activities
Deutsche Bank AG
Information Systems
Technical support and maintenance
Message Broker-Swift interface
Deutsche Bank AG
Information Systems
Technical support and maintenance Support services regarding send/receive procedures of MNT - Swift Messages
BT Bilişim Hizmetleri A.Ş.
Information Systems
Location supply and all infrastructure services for Disaster Recovery Site
Deutsche Bank AG
Operations
Operational support services within the context of Hotscan - Embargo
filtering practices
Deutsche Bank AG
Information Systems
Technical support and maintenance Hotscan - Embargo filtering practices
Deutsche Bank AG
Information Systems Technical support and maintenance - SSR Reconciliation practises - Technical support
and maintenance - ID-Management Management of User Accounts
Deutsche Bank AG
Information Systems
Technical support and maintenance -
Active Directory - ID Management
Deutsche Bank AG
Information Systems
Technical support and maintenance Network Support
Deutsche Bank AG South African Branch, Information Systems
Technical support and maintenance Securities (Pty) Ltd, Auto hedger
Deutsche Securities SA (Pty) Ltd.
Deutsche Bank AG
Information Systems Technical support and maintenance - DAP
Deutsche Bank DBOI Operational Proceedings
Client Information Services
Global Services Pvt Ltd Platin S.M.M.M. Ltd. Şti.
Operational Proceedings
Data entry and filing services
Deutsche Bank
Annual Report 2013
30
Deutsche Bank A.Ş. considers corporate social responsibility to be of utmost
importance and priority. The Bank takes a highly sensitive approach to the
production of social responsibility projects and the support of existing projects.
Deutsche Bank A.Ş. is aware of the fact that social responsibility is as important as
providing customer satisfaction, employee motivation and a healthy, efficient and
high-quality working environment.
Deutsche Bank continues to be a bridge between Germany and Turkey in
terms of developing economic, social and cultural relations:
Deutsche Bank pays great attention to the development of economic, social and
cultural relations between Germany and Turkey. In order to contribute to these
long-running relations between the two countries, the Bank works diligently on the
development of economic, social and cultural projects.
Bank’s parent company, Deutsche Bank AG has been organising the traditional
annual “Incentive Tour for Top GMC Clients” meeting for the last twelve years
for the senior managers of its prominent medium scale corporate clients. Due to
the importance that the Bank accords to the development of social and cultural
relations between Germany and Turkey, this meeting has taken place in Istanbul
four times over this period of twelve years. Furthermore, the “Deutsche Bank
European Advisory Board Meeting” was held in Turkey for the first time in 2013.
Those who attended the meetings organized in Istanbul with their families gained
the opportunity to get to know the city’s historical, cultural and natural beauties
and enrich their impressions of Turkey.
The "1st Turkish-German Investment and Cooperation Conference" was organised
in 2010 in Berlin, with Deutsche Bank as the lead sponsor in cooperation with
the Foreign Economic Relations Board (DEIK), the Turkish-German Business
Council and participants including Turkish and German government officials,
and representatives of the business world and media. The Conference proved a
success, and the "2nd Turkish-German Investment and Cooperation Conference"
was held in Berlin in coordination with the DEIK Turkish-German Business Council
in 2011. These relations continued to strengthen in 2013 as well.
Deutsche Bank will continue its studies on developing economic, social and
cultural relations between Germany and Turkey.
Van Earthquake Project:
In order to heal the wounds of those earthquake victims left homeless by the Van
earthquake which struck in October 2011, Deutsche Bank allocated a budget of
100,000 Euros to construct container homes and provide the necessary furnishings.
Visits were organised for families living in prefabricated towns and the necessary
help was provided after ascertaining their needs. Moreover, Deutsche Bank
provided scholarships to 15 primary school pupils on the recommendation of the
Van Governorship Welfare and Solidarity Foundation during the school years of
2012-2014. Various gifts were sent to these school pupils on the 23rd April National
Sovereignty and Children’s Day.
Deutsche Bank
Annual Report 2013
31
Sait Taşcıoğlu Primary School Project:
The “Sait Taşçıoğlu Primary School” project has been ongoing since 2010. As part
of the project, negotiations were conducted with officials to determine the needs
of the school, located in the village of Zerzevatçı in Istanbul’s Beykoz district, and
its pupils in 2013. As part of the Project, which was organised by Deutsche Bank
employees, various educational games and events were organised for young
pupils of the school on the 23rd April National Sovereignty and Children’s Day.
Moreover, in order to promote reading, Deutsche Bank employees donated books
and provided chess and English learning sets to the school.
Deutsche Bank Memorial Forest Project:
With the project launched in order to popularize and develop environmental
protection awareness in 2010, like every year, Deutsche Bank employees were
given a tree sapling every year on their birthdays via the Turkish Foundation for
Combating Soil Erosion, for Reforestation and for Protection of Natural Habitats
(TEMA) in 2013.
In order to provide support for the combat of the TEMA Foundation against soil
erosion and desertification, it was resolved to donate tree saplings to the Balıkesir
Kepsut Memorial Forest to be established in 2014 and to create a Deutsche Bank
Memorial Forest.
Deutsche Bank
Annual Report 2013
32
Culture and Arts:
Deutsche Bank believes in the universality of art, and will continue to
closely follow and support young artists around the world:
In order to encourage creativity and innovation, Deutsche Bank has been
supporting promising young artists all over the world in the fields of painting and
music for 32 years. The starting point of the Deutsche Bank collection, the largest
and most important corporate art collection in the world, can be considered as
its decisiveness and sensibility in contributing to the development of art. The
corporate collection, expanding since 1945, consists of paintings and photographs.
Deutsche Bank has organised the exhibitions, Habersiz Buluşma (Blind Date)
and Joseph Beuys ve Öğrencileri (Joseph Beuys and His Students) in Istanbul
in previous years. As the sponsor of the ‘1st Contemporary Istanbul and Edge of
Arabia Istanbul: Transition’ exhibition, Deutsche Bank highlighted the importance it
attributes to Istanbul as a bridge between civilizations.
Magdelena Kozena and Venice Baroque Orchestra Concert:
Bank’s parent company Deutsche Bank AG once more showed the importance it
attaches to arts and Istanbul by becoming a sponsor to the concert of Magdelena
Kozena, the famous soprano of the baroque music, accompanied by the Venice
Baroque Orchestra in Hagia Irene during the 41st Istanbul Music Festival, organized
by Istanbul Foundation for Culture and Arts (IKSV).
Berlin Philharmonic Orchestra:
Bank’s parent company, Deutsche Bank AG has supported the Berlin Philharmonic
Orchestra since 1989, which was established as an autonomous assemblage
in 1882 and has been accepted as the most noteworthy musical constitution of
our era. In 2002, Deutsche Bank was the exclusive partner and focused on the
education of the talented youngsters. Deutsche Bank also extended an opportunity
to open a digital concert hall as an innovative initiation in 2009 which would
enable the orchestra to reach more people through the Internet. For the first time
in its history, the Berlin Philharmonic Orchestra performed a concert in Istanbul
as part of the Istanbul Culture and Art Foundation’s 40th anniversary events in
September 2012. Furthermore, the orchestra performed a concert as part of the
26th International Izmir Fest, which was organised by the Izmir Culture, Art and
Education Foundation (İKSEV).
We encourage individuals to take responsibility for their own cities:
Through the “Urban Age” conference and project competition, Deutsche Bank’s
forum for examining the future of metropolitan cities around the world that took
place in Istanbul in 2009, organised by the Alfred Herrhausen Society and the
London School of Economics (LSE), issues such as the participation in urban life
and taking responsibility in multi-cultural societies were discussed with people
from different environments, workshops were conducted in an effort to encourage
individuals to question the idea of being an urbanite and to take responsibility for
their own cities, as well as following up with award winning projects.
Deutsche Bank
Annual Report 2013
33
Continued support for foundations supporting the environment, women’s
labor and education:
International Women’s Day, 8th March:
The funds raised by the lottery organized by Deutsche Bank employees to
underline the importance of the personal development and economic freedom of
women in our society were donated to the Women Entrepreneurs Association of
Turkey (KAGİDER) on International Women’s Day, 8th March.
With a charity sale organized, handmade gifts, made by women on low incomes
who were members of the Foundation for the Support of Women’s Work, were
purchased by Deutsche Bank employees as new-year gifts. Accordingly, our
handcraft products gained a higher profile, improving the economic freedom of
women in our society.
Turkish Foundation for Children in Need of Protection, Koruncuk:
In order to encourage reading, Deutsche Bank employees donated books to the
Turkish Foundation for Children in Need of Protection in an effort to support
education of homeless children.
Earth Week:
Through the “Dünya Haftası / Earth Week”, which is celebrated between 18th and
23rd March in the world and aims to raise awareness of environmental issues,
necessary measures were taken to promote the economical and correct use of
water and energy resources. There were a number of presentations and speeches
during the week, aimed at raising environmental awareness.
Various events were organised in November 2013 across all Deutsche Bank
branches simultaneously as part of “Diversity Week”, which is aimed at creating
awareness and promoting better understanding between individuals.
Deutsche Bank A.Ş. employees have been implementing their own social
responsibility projects by taking individual responsibility:
Deutsche Bank A.Ş. pays prioritised attention to ensure that its employees
are individuals who are socially and environmentally conscious, sensitive and
prepared to take responsibility. Therefore, employees are encouraged to take
responsibility individually and to carry out their own projects. Deutsche Bank
employees improved their individual projects and worked actively on collecting
waste paper, plastic bags and caps of plastic bottles in an effort to create a more
sustainable environment in 2013. Employees also worked on water and energy
saving projects. Deutsche Bank A.Ş. employees, even when they give a special
gift to their loved ones, contribute to people who face financial difficulty, the
environment and education by acting with concern for social responsibility.
3
Financial
Assessment and
Risk Management
35
37
38
38
39
39
39
41
42
43
Audits
Monitoring Targets
Credit Ratings
Deutsche Bank
Annual Report 2013
03 - Financial Assessment and Risk Management
35
The Audit Committee did not observe any adverse occurrences regarding the
Bank’s internal control, internal audit and risk management systems during the
2013 fiscal year. The Committee regularly corresponded with the Bank’s internal
systems department managers, closely monitored the Bank’s risk and operations
and ensured that all measures were taken for timely identification and elimination
of any risk. Regarding the compliance of the Bank’s accounting practices with
the Banking Law No. 5411 and other applicable legislation, the Committee
reviewed the assessments of the independent auditors and did not encounter any
discrepancies.
Our observations and opinions on the Bank’s risk management and
internal control activities are as follows:
Supervision by the Board of Directors and Executive Management: The
Board of Directors consists of experienced members who work actively in the
banking sector, are specialized in various fields of the banking profession and
possess sufficient knowledge on different types of assumed risks, how these risks
occur and how they can be managed.
The Executive Management works in close contact with the Board of Directors, is
knowledgeable and experienced on risk and is capable of utilizing the know-how
and experience of the parent bank, Deutsche Bank AG, in these areas.
Responsibilities regarding continuous risk reporting associated with developments
in the financial markets, risk management practices and the Bank’s operations
have been identified. Risk reporting is performed on a daily basis.
The Board of Directors and the Executive Management monitor the reliability and
functioning of accounting and reporting systems through specialists who are not
users of these systems.
The Board of Directors, Executive Management and the parent company, Deutsche
Bank AG, continuously review risk acceptance limits and implement the necessary
preventive measures in response to changing market conditions.
Bank AG, act conscientiously to ensure that the Bank’s business units and business
lines employ personnel who possess the necessary knowledge, experience and
expertise regarding the nature and scope of the tasks being performed.
In addition, employees are offered the opportunity to benefit from the Deutsche
Bank AG specialists, their knowledge and experience.
Through "the Code of Business Conduct and Ethics for Deutsche Bank Group"
document notified to the Deutsche Bank employees during the recruitment process
against signature, the Board of Directors, Executive Management and the main
partner, Deutsche Bank AG, have determined the general rules in order to form the
human resources team to conduct the Bank's activities in a safe and reliable way.
Thus, the necessary measures undertaken to carry out the Bank’s operations in a
safe and reliable manner and to ensure that employees are honest and ethical and
that they behave consistently with the Bank’s prudent management philosophy
and conduct.
Deutsche Bank
Annual Report 2013
36
Bank AG, monitor all operations of the Bank adequately through various internal
audit and control systems.
Before the Bank embarks on a new line of business or launches a new product,
the Board of Directors, Executive Management and the parent company, Deutsche
Bank AG, require the implementation of New Product Approval and New Business
Approval procedures to assess all potential risk which may arise from such
business or products, and provide the necessary infrastructure and internal
controls for the management of such risk.
The New Product Approval and New Business Approval procedures intend to
overview the adequacy of the Bank’s infrastructure necessary for identifying,
monitoring and controlling the potential risk before embarking on a new operation
or launching a new product.
Risk Management Policies, Implementation Methods and Limits: The
Bank’s risk in trading treasury bills and government bonds has been identified
and policies, implementation methods and limits to measure, monitor and control
these have been established.
These policies, implementation methods and limits are consistent with the level of
experience, goals and objectives and financial strength of Deutsche Bank A.Ş. as
well as of the parent bank, Deutsche Bank AG. Following the determination of risk
policies by Deutsche Bank AG, the Bank Risk Committee evaluates these policies,
adopts those that are appropriate for Deutsche Bank A.Ş. and then submits them
for the approval of the Board of Directors.
Hierarchical structure of the authorities and responsibilities in the Bank’s
operations are set out in the organization chart.
We did not identify any transaction that might result in any significant risk during
2013. The Bank’s risk management and internal control systems are capable of
identifying potential risk in advance.
On behalf of the Audit Committee
Kaya Didman, Chairman
Deutsche Bank
Annual Report 2013
37
As a result of the assessment made by the Board of Directors of Deutsche Bank
A.Ş. (“Bank”) of the internal controls on information systems and banking
processes for the audit period of January 1, 2013 - December 31, 2013 in terms of
efficiency, adequacy and compliance pursuant to Regulation on Bank Information
Systems and Banking Processes Audit to be Performed by External Audit
Institutions, which became effective on December 31, 2009 and publicly announced
at the Official Gazette on January 13, 2010 with issue no. 27461, by the Banking
Regulation and Supervision Agency and the Circular Letter dated June 30, 2010
with no. B.02.1.BDK.0.77.00.00.010.06.02/3 on “Management Declaration”, which
specifies the particulars of the Management Declaration, preparation of which is
stipulated in Article 33 of the Regulation above, we hereby declare that,
•
Board of Directors of our Bank is responsible from establishment and
performance of an efficient, adequate and compliant internal control system
pursuant to Articles 29 and 30 of the Banking Law with no. 5411 and to
paragraph 1 of Article 4 of the Regulation on the Internal Systems of the Banks,
which was publicly announced at the Official Gazette of November 1, 2006
with issue no. 26333,
•
Internal Control and Internal Audit Units of our Bank performed an
examination on the internal control system for the banking processes included
in Article 25 of the Regulation on Bank Information Systems and Banking
Processes Audit to be Performed by External Audit Institutions and the
Information Systems processes included in Article 24 of the same Regulation
and an assessment in order to reveal all significant control deficiencies
regarding this system,
•
During the assessment made by the related units of our Bank on the internal
control system, results of the works conducted by the related units of our
Bank, not the results of the works of the external audit institution were used,
•
No significant control deficiency was detected on the Internal Control System
of our Bank,
•
No significant control deficiency, which may hinder the efficiency, adequacy or
compliance of our internal control system in accordance with the procedures
and principles set forth in the second chapter of the Regulation on the
Internal Systems of the Banks entitled “The Internal Control System” and
the Communiqué on Principles to be Considered in Information Systems
Management in Banks, which was publicly announced at the Official Gazette
dated September 14, 2007 with issue no. 26643, was found,
•
As a result of the assessment made on our internal control system, all control
weaknesses and noteworthy control deficiencies detected on our internal
control system are classified and presented to the external auditor, even if they
were corrected by the end of the period,
•
As a result of the audits performed by the Internal Audit Unit during 2013, 25
Control Weakness (CW) and 5 Noteworthy Lack of Control (NLC) findings were
determined in total and currently, 16 CW and 1 NLC findings are still open in
accordance with the target dates of the management action plans,
Deutsche Bank
Annual Report 2013
Audits
38
•
No act of misconduct or corruption, which may result in material
misrepresentation in the Financial tables or materially impact the integrity,
consistency, reliability and confidentiality, if and when a need for such
confidentiality arises, of sensitive data of the Bank, especially the financial
data, and continuity of the activities or in which managers, be it of important
function or not, or other employees with critical duties in the internal control
system of the Bank are involved, was detected,
•
Current status of the findings, whether they are closed or not, determined in
the previous external information systems and banking processes audits and
presented to the bank, closure of which have not yet been approved by the
external auditor have been determined and submitted to the external auditor,
•
Subsequent to the examinations made on our internal control system, changes
in the internal control system or in other issues which may materially impact
the internal control system are presented to the external auditor in a way
that will include the corrective actions taken by the bank in significant and
noteworthy control deficiencies.
Board of Directors of Deutsche Bank A.Ş.
Audits
During the fiscal period, the Bank underwent financial audit performed by the
Banking Regulation and Supervision Agency (BRSA) and the routine responsibility
audit, performed by the Central Bank of Turkey. In addition, independent auditor of
the Bank performed quarterly interim audits and an annual audit.
Other Information Regarding
Corporate Actions
No legal action has been lodged against the Bank that would affect the Bank’s
fiscal position and actions.
During 2013, the Bank was ordered to pay an administrative fine of TL 167,385
by the BRSA as a result of inconsistencies found in the Bank’s application of
regulations. No administrative or legal sanctions have been applied against the
Bank’s Board of Directors.
Deutsche Bank
Annual Report 2013
Monitoring Targets
39
A Higher Capital Adequacy than the Sector Average
Deutsche Bank A.Ş. has a relatively high capital adequacy ratio when compared
to the sector average. On and off-balance sheet foreign currency balances are
managed concurrently. While the securities portfolio held for trading purposes
and loans comprise the majority of the Bank’s assets, the majority of its profit is
derived from interest from securities and loans and profits from derivative financial
instruments. The Bank’s liquidity and interest risk are managed diligently by taking
into account its capital and the funding limit set by Deutsche Bank AG, for the risk
exceeding a reasonable amount, by selling forward securities to Deutsche Bank
AG, London. The Bank maintains high levels of liquidity at all times and makes
investment decisions depending on prevailing market conditions.
The Bank’s parent company, Deutsche Bank AG, undertakes that it will fulfill the
contracted responsibilities of Deutsche Bank A.Ş. based on its declaration which
was approved at the General Shareholders and published in its annual report.
An analytical assessment of the financial position is included in the Summary
Report of the Board of Directors to the General Assembly.
Monitoring Targets
The annual budget is set by the Bank’s Board of Directors in line with the targets
and monitoring activities check whether or not operational results are in line with
the budget. Profit/loss, balance sheet and risk weighted assets, established in
accordance with the internal assessment process, are approved by the Board of
Directors of the Bank. The Bank made less profit than the profit budgeted due to
the effects of the market fluctuations in the current period.
Decisions taken by General Assembly are fulfilled by the Board of Directors without
exception.
General Policies
Deutsche Bank A.Ş. holds a portfolio including TL treasury bills, government
bonds and private sector bonds for trading purposes, but the Bank does not trade
in the equity market. Deutsche Bank does not extend cash or non-cash corporate
loans with maturities of over 5 years. The Bank has various upper limits on cash
loans, letters of guarantee and commercial letters of credit. Country and sector
concentration limits also apply. The Bank carefully avoids interbank money market
transactions whose maturities are beyond six months.
Deutsche Bank
Annual Report 2013
40
With the exception of banks and institutions with established limits, foreign
currency transactions with banks and institutions are carried out on a “cashagainst-delivery” basis. The Bank’s approval procedures are followed for new
products and business lines. All insurance transactions against operational risks
are coordinated with Deukona. The Disaster Recovery Plan is reviewed and tested
periodically.
Compliance with such policies and limits are monitored on a daily basis. Any form
of violation is reported to the senior management, the relevant department and the
board member responsible for internal systems.
Foreign currency transaction with banks and corporations are conducted on a pay
on delivery basis, although Limit installed banks and corporations are exempted
from this procedure. The Bank carries out approval procedures on new products
and new business branches. Insurance transactions are coordinated with Deukona
for types of operational risk. Reputational risks are discussed and determined
by the Reputational Risk Committee. The Emergency plan is revised and tested
periodically. Policies and limits are monitored on a daily basis; any violation
is reported to the senior management, the relevant department and the board
member responsible for internal systems.
The Bank aims to expand its loan portfolio in large scale corporates. Having a high
capital adequacy ratio, the Bank will continue to pay efforts to enlarge its loan
portfolio in 2014.
There were no studies or reports on early risk identification issues.
Risk Management
The Risk Management Unit is responsible for the Bank-wide implementation
of the standards “regarding the risk-return structure of the Bank’s cash flows
and monitoring, and, where necessary, modifying the nature and level of the
operations” that were devised and brought into effect by the Board of Directors
within the framework of BRSA regulations. In addition, the Risk Management Unit
is also responsible for risk monitoring through the management of information
systems, monitoring and maintaining market risk, credit risk, and operational risk
at a minimum level. The Bank’s risk monitoring exercises and reports include the
risks set out above.
Market Risk
Market risk is the risk that the Bank’s positions may lose value as a result of market
fluctuations. Market risk arises as a result of uncertainties emanating from the
levels of correlation and volatility of market prices and movements in exchange
rates.
Credit Risk
In the event that a debtor defaults and the Bank takes on a loss risk, the credit risk
covers all transactions that could bring actual, conditional or potential demands to
the Bank by another party, debtor or obligator.
Deutsche Bank
Annual Report 2013
Credit Ratings
41
Operational Risk
Operational risk represents the probability of a value loss due to insufficient or
inefficient in-house processes, employee error or systems-related errors and/or
situations outside the bank (together with the legal dimensions). An operational
risk also includes legal risks, tax-related risks and IT systems-related risks. The
Board of Directors state that the controls of the Bank are appropriate in relation
to the risk factors mentioned above, that these risk factors are under control
thanks to bank limits approved by the Board of Directors and that these factors are
monitored closely.
Compliance and Internal Control
The internal control system is regulated in compliance with risk types and levels
emerging in relation to the quality and content of the Bank’s activities.
Internal control activities are subject to continuous examination for one whole
year after the completion of risk evaluation studies. Reports on the findings of the
results are prepared and these findings are rated according to the risks they imply.
Dates are determined for the accomplishment of measures to close the findings.
Any overrun of time is reported to the Audit Committee and the Executive
Management.
Internal Audit
Internal control and information systems are monitored throughout the whole
year, based on risk assessment studies carried out by the Audit Committee.
Furthermore, by taking into account the results of the risk assessment, periodical
audits are also conducted in different areas. Improvements to processes were
carried out in line with the ascertained findings of the audits and suggestions of
ways to enhance the controls were submitted. Furthermore, measures approved
for implementation by the senior management were effectively followed.
As a result, internal audit plays an important role in the mitigation, identification
and management of the bank’s risks through its risk assessed approach and
qualified resources.
Credit Ratings
Deutsche Bank A.Ş. is not rated by rating agencies.
As of December 31, 2013, international rating agencies had attached the following
ratings to the Bank’s parent company, Deutsche Bank AG:
Short - term
Rating
Moody’s Investors Service P - 1
Standard & Poor’s
A - 1
Fitch Ratings
F1 +
Long - term
Rating
Outlook
A2
Negative
A Stable
A +
Stable
Individual
Rating
baa2
baa+
A
Deutsche Bank
Annual Report 2013
42
Summary of Five - Year
Assets (TL 000)
201320122011 20102009
Cash and Balances with the Central Bank
228.523 162.344132.773 27.035 27.340
Trading Securities (Net)
797.082 618.2411.195.014 348.6521.103.873
Derivative Financial Assets Held-for-Trading 18.937
86111.063 10.745 4.773
Banks and Other Financial Institutions
313.018 41.691112.268 55.077 69.273
Receivables from Money Markets
-
-170.100
2.344.327469.085
Investment Securities Available-for-Sale (Net)
- -- -Loans and Receivables
904.029 381.905531.975 168.584 68.955
Unconsolidated Subsidiaries (Net)
- -- -Tangible Assets (Net)
2.675 3.4422.532 3.6174.769
Intangible Assets (Net)
27.028 34.151 39.429 45.646114.085
Tax Assets
1.673
-4.070 1.254 531
Other Assets
66.665 54.33142.796 46.33147.585
Total Assets
2.359.630 1.296.9662.242.020 3.051.2681.910.269
Liabilities (TL 000)2013
20122011 20102009
Deposits
592.956 430.740334.835
1.790.087569.255
Derivative Financial Liabilities
Held-for-Trading
18.145 1.06513.832 13.020 2.594
Payables to Money Markets
187.512 59.753816.753 19.783 22.341
Funds Borrowed
1.074.023 236.062608.570 803.971865.264
Securities Issued (Net)
-
-- -Funds
-
-- -Miscellaneous Payables
2.167 2.2523.591 7.3532.958
Other External Resources Payable
3.632 5255.882 193 14
Factoring Payables
-
-- -Lease Payables (Net)
-
- 17 283984
Provisions and Tax Liability
54.488 51.68841.352 31.46334.563
Subordinated Loans
-
-- -Shareholders’ Equity
426.707 514.881417.188 385.115412.296
Total Liabilities
2.359.630 1.296.9662.242.020 3.051.2681.910.269
Income Statement (TL 000)201320122011 20102009
Interest Income
158.897 301.467214.384 103.482 54.860
Interest Expense
26.805 51.31855.693 30.72738.590
Net Interest Income/(Expense)
132.092 250.149158.691 72.755 16.270
Net Fees and Commissions Income/(Expense) 55.947 45.10534.572 21.85140.805
Net Trading Income/(Loss)
(100.171) (85.818)(83.566) 22.188 150.281
Other Operating Income
16.433 7.5116.464 6.9666.298
Total Operating Profit
104.301 216.947116.161 123.760213.654
Provision for Losses on Loans or
Other Receivables (-)
10.170 1.8045.531 9702.354
Other Operating Expenses (-)
89.999 84.51169.201128.07176.943
Net Operating Profit/(Loss)
4.132 130.632 41.429 (5.281)134.357
Gain/(Loss) on Net Monetary Position
-
-- -Profit/(Loss) Before Taxes 4.132 130.632 41.429 (5.281)134.357
Provision for Taxes (-)
2.045 26.525 9.356
76028.653
Net Operating Profit/(Loss) after Taxes
2.087 104.107 32.073 (6.041)105.704
Extraordinary Profit/(Loss) After Taxes
-
-- -Net Profit/(Loss)
2.087
104.107 32.073 (6.041)105.704
Debt / Equity Ratio (%)
440,22 141,86427,50 684,13354,94
Deutsche Bank
Annual Report 2013
43
4
Independent
Auditors’ Report,
Financial Statements
and Disclosures
46
47
50
Independent Auditors’ Report
Unconsolidated Financial Report
DEUTSCHE BANK ANONİM ŞİRKETİ
Unconsolidated Financial Statements
As of and For the Year Ended 31 December 2013
With Independent Auditors’ Report Thereon
46
Deutsche Bank
Annual Report 2013
Akis Bağımsız Denetim ve Serbest
Muhasebeci Mali Müşavirlik A.Ş.
Kavacık Rüzgarlı Bahçe Mah. Kavak Sok. No: 29
Beykoz 34805 Istanbul
Telephone +90 (216) 681 90 00
Fax
+90 (216) 681 90 90
Internet
www.kpmg.com.tr
CONVENIENCE TRANSLATION OF
THE INDEPENDENT AUDITOR’S REPORT
ORIGINALLY PREPARED AND ISSUED IN TURKISH
To the Board of Directors of Deutsche Bank Anonim Şirketi
We have audited the unconsolidated balance sheet of Deutsche Bank Anonim Şirketi (“the Bank”) as of 31 December 2013 and
the related unconsolidated statements of income, changes in equity, cash flows for the year then ended, and a summary of
significant accounting policies and other explanatory notes.
The Board of Directors’ Responsibility for the Financial Statements
The Board of Directors of the Bank is responsible for the establishment of an internal control system, selection and application
of appropriate accounting policies for the preparation and fair presentation of the financial statements in accordance with the
“Regulation on the Procedures and Principles for Accounting Practices and Retention of Documents by Banks” published in the
Official Gazette dated 1 November 2006 and numbered 26333 and Turkish Accounting Standards, Turkish Financial Reporting
Standards and other regulations, explanations and circulars on accounting and financial reporting principles announced by the
Banking Regulation and Supervision Agency (BRSA) and declarations by the Banking Regulation and Supervision Board, free
from material misstatement, whether due to fraud or error, that could lead to false information within.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with the “Regulation on Authorization and Activities of Institutions to Perform Independent Audit at Banks”
published on the Official Gazette dated 1 November 2006 and numbered 26333 and International Standards on Auditing. We
planned and conducted our audit to obtain reasonable assurance as to whether the financial statements are free from material
misstatement. Our audit includes using the audit techniques for the purpose of obtaining evidence supporting the amounts
and disclosures in the financial statements. The selection of the audit techniques made in accordance with our professional
judgment by taking the effectiveness of the controls over financial reporting into and assessing the appropriateness of the
applied accounting policies. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion expressed below.
Opinion
In our opinion, based on our audit, the accompanying unconsolidated financial statements present fairly, in all material
respects, the financial position of Deutsche Bank Anonim Şirketi as of 31 December 2013 and the results of its operations and
its cash flows for the year then ended in accordance with the prevailing accounting principles and standards as per the Article
37 of (Turkish) Banking Law No: 5411 and other regulations, explanations and circulars on accounting and financial reporting
principles announced by BRSA.
Other Matter
The financial statements of the Bank as at and for the year ended 31 December 2012 were audited by another auditor who
expressed an unmodified opinion on those statements on 8 March 2013.
İstanbul,
Akis Bağımsız Denetim ve
5 March 2014
Serbest Muhasebeci Mali Müşavirlik
Anonim Şirketi
Funda Aslanoğlu
Partner
Funda Aslanoğlu
Sorumlu Ortak, Başdenetçi
47
Deutsche Bank
Annual Report 2013
The Unconsolidated
Financial Report of Deutsche Bank A.Ş.
As of 31 December 2013
Bank’s Head Office Address : Esentepe Mahallesi, Eski Büyükdere Cad. Tekfen Tower No: 209
Kat: 17-18 Şişli 34394 - ISTANBUL
Bank’s Telephone and Fax Numbers : (0212) 317 01 00
: (0212) 317 01 05
Bank’s web address
: www.db.com.tr
E-mail address : muhaberat.ist@list.db.com
The unconsolidated year-end financial report prepared in accordance with the communiqué of Financial Statements
and Related Disclosures and Footnotes to be announced to Public by Banks as regulated by Banking Regulation and
Supervision Agency, is comprised of the following sections:
1. GENERAL INFORMATION ABOUT THE BANK
2. UNCONSOLIDATED FINANCIAL STATEMENTS
3. EXPLANATIONS ON ACCOUNTING POLICIES
4. INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK
5.EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS
6. OTHER EXPLANATIONS AND NOTES
7. INDEPENDENT AUDITORS’ REPORT
The unconsolidated financial statements and related disclosures and footnotes that were subject to independent audit, are
prepared in accordance with the Regulation on Accounting Applications for Banks and Safeguarding of Documents, Turkish
Accounting Standards, Turkish Financial Reporting Standards and the related statements and guidances and in compliance
with the financial records of our Bank. Unless stated otherwise, the accompanying unconsolidated financial statements are
presented in thousands of Turkish Lira (TL).
Peter Johannes Maria Tils
Chairman og Board of Directors
Kaya Didman
Chairman of Audit Committee
Paul Antony Geradine
Member of Audit Committee
Ersin Akyüz
General Manager
Özge Kutay
Board Member Responsible from Financial Reporting
Nesrin Akyüz
Finance Manager
Information related with the personnel authorised to answer the questions regarding this financial report
Name-Surname / Title: Nesrin Akyüz / Finance Manager
Tel No: 0 212 317 02 27
Fax No: 0 212 317 01 05
48
Deutsche Bank
Annual Report 2013
SECTION ONE
GENERAL INFORMATION ABOUT THE BANK
Page
I.
II.
III IV.
V.
50
History of the Bank including its incorporation date, initial legal status, amendments to legal status
Bank’s shareholder structure, management and internal audit, direct and indirect shareholders,
change shareholder structure
during the year and information’s on Bank’s risk group
Information’s on the Bank’s board of directors’ chairman and members, audit committee members,
general manager, assistant
general managers, change in top management and their shareholdings in the Bank
Information on the Bank’s qualified shareholders
Summary information on the Bank’s activities and services
50
51
52
53
SECTION TWO
UNCONSOLIDATED FINANCIAL STATEMENTS
I.
II.
III.
IV.
V.
VI.
VII.
Balance sheet (Statement of Financial Position)
Off-balance sheet items
Income statement
Statement of Income /Expense items recognized under equity
Statement of changes in equity Statement of cash flows
Statement of profit distribution
54
56
57
58
59
60
61
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
I.
II.
III.
IV
V.
VI
VII.
VIII.
IX.
X.
XI.
XII. XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
XIX.
XX.
XXI.
XXII.
Explanations and notes basis of presentation
Basis of presentatiton of financial statements
Explanations on strategy of using financial instruments and foreign currency transactions
Informations related to investments in associates and subsidiaries Explanations on forward, options and derivative transactions
Explanations on interest income and expenses
Explanations on fee and commission income and expense
Explanations on financial assets
Explanations on impairment of financial assets
Explanations on offsetting financial assets
Explanations on sales and repurchase agreements and securities lending transactions
Explanations on assets held for resale and discontinued operations
Explanations on goodwill and other intangible assets
Explanations on property and equipment
Explanations on leasing transactions
Explanations on provisions and contingent commitments
Explanations on contingent assets
Explanations on obligations related to employee rights
Explanations on taxation
Explanations on borrowings
Explanations on issuance of share certificates
Explanations on avalized drafts and acceptances
62
62
64
64
64
64
64
65
66
66
66
66
66-67
67
67
68
68
68
68-69
69
69
69
49
Deutsche Bank
Annual Report 2013
XXIII. Explanations on government grants
XXIV. Explanations on profit reserves and profit distribution
XXV. Explanations on earnings per share
XXVI. Explanations on related parties
XXVII. Explanations on cash and cash equivalents
XXVIII. Explanations on segment reporting
XXIX. Reclassifications
69
69
70
70
70
70
70
SECTION FOUR
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Explanations on capital adequacy ratio
Explanations on credit risk
Explanations on market risk
.
Explanations on operational risk
Explanations on currency risk
Explanations on interest rate risk
Explanations on liquidity risk
Explanation regarding the presentation of financial assets and liabilities at their fair values
Explanation regarding the activities carried out on behalf and account of other parties
Explanations on operating segments
71-74
74-81
81-82
82-83
83-84
85-87
87-92
92-93
93
94
SECTION FIVE
EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
Explanations and notes related to assets
Explanations and notes related to liabilities
Explanations and notes related to off-balance sheet accounts
Explanations and notes related to income statement
Explanations and notes related to changes in shareholders’ equity
Explanations and notes related to statement of cash flows
Explanations and notes related to Bank’s risk group
Explanations and notes related to domestic, foreign off-shore branches and foreign representatives
of the Bank
Explanations and notes related to subsequent events 95-101
102-106
107-109
109-113
114
114-115
115-117
117
117
SECTION SIX
OTHER EXPLANATIONS AND NOTES
I.
Other explanations related to Bank’s operations 118
SECTION SEVEN
EXPLANATIONS ON INDEPENDENT AUDITORS’ REPORT
I.
II.
Explanations on independent auditors’ report 118
Explanations and notes prepared by independent auditor 118
Deutsche Bank
Annual Report 2013
50
Deutsche Bank Anonim Şirketi
Notes to Unconsolidated Financial Statements
At 31 December 2013
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
SECTION ONE
General Information About The Bank
I.History of the Bank including its incorporation date, initial legal status, amendments to legal status
Deutsche Bank Anonim Şirketi (“the Bank”) was established with Council of Ministers Permit No. 87/12432, dated 16
December 1987. This permit was published in the Official Gazette dated 26 December 1987 and it was registered on 4
April 1988. The “Articles of Association” of the Bank were published in the Trade Registry Gazette on 7 April 1988. The
commercial title of the Bank upon its establishment was “Türk Merchant Bank A.Ş.” which was changed to “Bankers Trust
A.Ş.” on 17 April 1997. After the global merger of Bankers Trust and Deutsche Bank, the Bank’s commercial title has been
changed to “Deutsche Bank Anonim Şirketi” at 1 March 2000. The Bank obtained the permission to accept deposits with
the article numbered 1381 and dated 8 September 2004 of Banking Regulatory and Supervisory Agency (“BRSA”). This
permission became valid after it was published in Official Gazette No. 25614 dated 15 October 2004. The Bank’s head office
is located in Istanbul and has no branches.
II.Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change in shareholder
structure during the year and information on Bank’s risk group
As of 31 December 2013, the Bank’s paid-in capital is comprised of 1.350.000.000 shares whose historical nominal unit
values are TL 0,1. The Bank is one of the group companies of Deutsche Bank Group and 99.99% of the Bank’s capital is
owned by Deutsche Bank AG.
22 years
Board Member
Ahmet Arınç 11 September 2002
The top management listed above holds no shares of the Bank.
Assistant General Managers
Hakan Ulutaş
Trade and Custody
18 October 2012
Undergraduate: İstanbul University Services
Management Faculty Master: Marmara University
Science Research and Application Center, Contemporary Business Education Directore
21 years
Cenk Esener Corporate Cash Management
18 October 2012
Undergraduate: Eastern Mediterranean
and Foreign Trade
Universy Economics Department
18 years
Mustafa Bağrıaçık
Investment 18 October 2012
Undergraduate: İstanbul Technical Banking Services
University Mechanical Engineering
Master: Suffolk University Management /
Boston College Finance
19 years
Ali Doğrusöz Technology and Operations
16 December 2002
Undergraduate: North Carolina University
Mechanical Engineering
Master: METU Mechanical Engineering 25 years
Süleyman Mert Haracçı
Global Markets
28 October 2009
Undergraduate and Master: Marmara University, Finance Department 19 years
Members of Board
H.Sedat Eratalar
Internal Systems
2 August 2001
Undergraduate: Ankara University
33 years
Satvinger Singh
12 July 2012
Economics and Finance Department Undergraduate: Delhi College of Engineering
Master: Durham University, Management
20 years
Marco Kistner 29 September 2012 Undergraduate: Frankfurt University Bank Management 30 years
Özge Kutay
F
inancial Reporting
18 October 2012
Undergraduate: İstanbul University Faculty of Economics and Administrative Science
20 years
Member of Board and Audit
Committee
Paul Antony Geradine
12 December 2012
Undergraduate: Associate Institute of Chartered Accountants in England and Wales
Master: University of Oxford, Bachelor of
Arts in Modern History
14 years
Undergraduate: College of Wooster,
Economics
25 years
25 years
36 years
Chairman
Peter Johannes Maria Tils 21 November 2012
Undergraduate: Bonn University Political Economics Undergraduate: Bonn University Political Vice Chairman and
Chairman of the Audit Committe
Kaya Didman 27 March 2008
Undergraduate: Boğaziçi University
Faculty of Administrative Sciences,
Management
Board Member and
General Manager
Ersin Akyüz
27 February 2008
Undergraduate: London School of Economics
Master: University of Chicago
III.Information on the Bank’s board of directors’ chairman and members, audit committee members, general manager, assistant general managers, change in top management
and their shareholdings in the Bank
Experience in
Banking and
Appointment Business
TitleName & Surname
Responsibilities
Date
Education Administration
Notes to Unconsolidated Financial Statements at 31 December 2013
Deutsche Bank
Annual Report 2013
51
52
Deutsche Bank
Annual Report 2013
At 31 December 2013
Changes occured for the year ended 31 December 2013:
Title
Auditors (*)
Auditors (*)
Member of Board (**)
(*)
Outgoing within the period
Appointee within the period
Erdal Hasan Ortaç
Sacit Akdemir
Miklos Kormos
-
-
-
Statutory auditor position of the Bank‘s auditors has been ended on 28 March 2013.
Board Member Miklos Kormos has passed away on 13 December 2013.
(**)
IV. Information on the Bank’s qualified shareholders
The Bank’s qualified shareholder, which has direct or indirect control power, due to the definition of qualified portion on
Banking Act No. 5411 and regarding to Article 13th of Communiqué on Transactions Subject to Bank’s Permission and
Indirect Portion Ownership, is shown below:
Share
Share
Paid
Name Surname / Commercial Title
Amounts
Ratios
Shares
Deutsche Bank AG
134.999
99,99
134.999
Other
1
0,01
1
Total
135.000
100
135.000
Unpaid
Shares
-
Deutsche Bank
Annual Report 2013
53
At 31 December 2013
V. Summary information on the Bank’s activities and services
Activities of the Bank as stated in its Articles of Association are as follows:
• All banking operations;
• Jointly establishing enterprises with the corporations or individuals, joint ventures, investing to the existing or newly
established commercial and industrial institutions, banks and financial institutions and transferring the shares of those
enterprises;
•Providing commercial and insurance activities on behalf of the Bank or the domestic and foreign institutions, acting as
agencies, and providing commitments to public and non-public entities in compliance with the regulations set by the
Banking Law and the related legislations;
•Purchasing and selling marketable securities on behalf of the Bank or third parties, issuing debt securities by taking
the necessary permissions in accordance with the related legislation, establishing and managing investment funds and
performing other capital market transactions, which are allowed by the Banking Law and operating in stock exchange;
• Performing faktoring and forfaiting;
• Performing transactions in foreign currency markets including forward transactions on behalf of the Bank or its’
customers;
•Performing equipment leasing and real estate financing by way of leasing the extent permitted by legislation
•Acquiring intangible assets related with the Bank’s operations and making savings on them;
The Bank, which has been providing investment banking services since its establishment date, has obtained the permission
to accept deposits from BRSA Decision No. 1381 dated 8 September 2004, as a result of the Bank’s growth and investment
policies in Turkey. This permission became into force after it was published in Official Gazette No. 25614 dated 15 October
2004.
The main operations of the Bank are, Interbank Money Market transactions, purchasing and selling marketable securities,
foreign currency transactions, providing collateralised non-cash loans related with commercial activities and custody
services. After obtaining commercial banking licence, in addition to the Bank’s current operations like commercial banking
and money market transactions, the Bank became structured to meet all of the needs of its’ customers by providing
services such as accepting deposits, opening individual accounts and selling cash management products and services,
accordingly.
As of 31 December 2013, the number of employees of the Bank is 110 (31 December 2012: 105).
The notes between page 13 and 86 are an integral part of these financial statements.
54
Deutsche Bank
Annual Report 2013
Unconsolidated Balance Sheet (Statement of Financial Position)
As At 31 December 2013
SECTION TWO
Unconsolidated Financial Statements
I. BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
ASSETS
Note (5 - I)
TL
Current period
31 December 2013
FC
Total
I.
TL
Prior period
31 December 2012
FC
Total
CASH AND BALANCES WITH THE
CENTRAL BANK
(1)
30.142
198.381
228.523
42.933
119.411
FINANCIAL ASSETS AT FAIR VALUE THROUGH
PROFIT/LOSS (Net)
(2) 797.082
18.937
816.019
618.241
861
2.1 Trading securities 797.082
18.937
816.019
618.241
861
2.1.1 Government debt securities 797.082
-
797.082
618.241
-
2.1.2 Share certificates
-
-
-
-
-
2.1.3 Trading derivative instruments
-
18.937
18.937
-
861
2.1.4 Other securities
-
-
-
-
-
2.2 Financial assets at fair value through profit/loss
-
-
-
-
-
2.2.1 Government debt securities
-
-
-
-
-
2.2.2 Share certificates
-
-
-
-
-
2.2.3 Loans
-
-
-
-
-
2.2.4 Other securities
-
-
-
-
-
III.
BANKS
(3) 307.745
5.273
313.018
38.574
3.117
IV. MONEY MARKET PLACEMENTS
-
-
-
-
-
4.1 Interbank money market placements
-
-
-
-
-
4.2 Istanbul Stock Exchange money market placements
-
-
-
-
-
4.3 Receivables from reverse repurchase agreements
-
-
-
-
-
V.
AVAILABLE FOR SALE FINANCIAL ASSETS (Net) (4)
-
-
-
-
-
5.1 Share certificates
-
-
-
-
-
5.2 Government debt securities
-
-
-
-
-
5.3 Other securities
-
-
-
-
-
VI. LOANS AND RECEIVABLES
(5) 491.836
412.193
904.029
263.507
118.398
6.1 Loans 491.836
412.193
904.029
263.507
118.398
6.1.1 The Bank's risk group's loans
-
-
-
-
-
6.1.2 Government debt securities
-
-
-
-
-
6.1.3 Others 491.836
412.193
904.029
263.507
118.398
6.2 Loans at follow-up
-
-
-
-
-
6.3 Specific provisions (-)
-
-
-
-
-
VII. FACTORING RECEIVABLES
-
-
-
-
-
VIII. HELD TO MATURITY FINANCIAL ASSETS (Net) (6)
-
-
-
-
-
8.1 Government bonds
-
-
-
-
-
8.2 Other securities
-
-
-
-
-
IX. INVESTMENTS IN ASSOCIATES (Net)
(7)
-
-
-
-
-
9.1 Consolidated according to equity method
-
-
-
-
-
9.2 Non-consolidated
-
-
-
-
-
9.2.1 Financial associates
-
-
-
-
-
9.2.2 Non-Financial associates
-
-
-
-
-
X.
INVESTMENTS IN SUBSIDIARIES (Net) (8)
-
-
-
-
-
10.1 Non-consolidated financial subsidiaries
-
-
-
-
-
10.2 Non-consolidated non-financial subsidiaries
-
-
-
-
-
XI. INVESTMENTS IN JOINT VENTURES (Net) (9)
-
-
-
-
-
11.1 Consolidated according to equity method
-
-
-
-
-
11.2 Non-consolidated
-
-
-
-
-
11.2.1Financial joint ventures
-
-
-
-
-
11.2.2Non-financial joint ventures
-
-
-
-
-
XII. FINANCIAL LEASE RECEIVABLES (Net)
(10)
-
-
-
-
-
12.1 Financial lease receivables (Net)
-
-
-
-
-
12.2 Operational lease receivables
-
-
-
-
-
12.3 Other
-
-
-
-
-
12.4 Unearned Income (-)
-
-
-
-
-
XIII. DERIVATIVE FINANCIAL INSTRUMENTS HELD
FOR RISK MANAGEMENT
(11)
-
-
-
-
-
13.1 Fair value hedges
-
-
-
-
-
13.2 Cash flow hedges
-
-
-
-
-
13.3 Net foreign investment hedges
-
-
-
-
-
XIV. TANGIBLE ASSETS (Net) (12)
2.675
-
2.675
3.442
-
XV. INTANGIBLE ASSETS (Net)
(13)
27.028
-
27.028
34.151
-
15.1 Goodwill
-
-
-
-
-
15.2 Other intangibles
27.028
-
27.028
34.151
-
XVI. INVESTMENT PROPERTY (Net)
(14)
-
-
-
-
-
XVII. TAX ASSET
(15)
1.673
-
1.673
-
-
17.1 Current tax asset
1.673
-
1.673
-
-
17.2 Deferred tax asset
-
-
-
-
-
XVIII. ASSETS HELD FOR SALE OR FOR
DISCONTINUED OPERATIONS (Net)
(16)
-
-
-
-
-
18.1 Held for sale
-
-
-
-
-
18.2 Related with discontinued operations
-
-
-
-
-
XIX. OTHER ASSETS
(17)
10.785
55.880
66.665
11.064
43.267
TOTAL ASSETS 1.668.966
690.664
2.359.630
1.011.912
285.054
II.
162.344
619.102
619.102
618.241
861
41.691
381.905
381.905
381.905
3.442
34.151
34.151
54.331
1.296.966
55
Deutsche Bank
Annual Report 2013
Unconsolidated Balance Sheet (Statement of Financial Position)
As At 31 December 2013
I. BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) (continued)
LIABILITIES
NOTE (5 - II)
TL
Current period
31 December 2013
FC
Total
Prior period
31 December 2012
TL
FC
Total
I.
DEPOSITS
(1)
542.551
50.405
592.956
321.647
109.093
430.740
1.1
The Bank's risk group's deposits
258.390
-
258.390
128.468
29
128.497
1.2
Others
284.161
50.405
334.566
193.179
109.064
302.243
II.
DERIVATIVE FINANCIAL LIABILITIES HELD
FOR TRADING
(2)
-
18.145
18.145
-
1.065
1.065
III.
FUNDS BORROWED
(3)
401.913
672.110
1.074.023
880
235.182
236.062
IV.
INTERBANK MONEY MARKET
187.512
-
187.512
59.753
-
59.753
4.1
Interbank money market funds
-
-
-
-
-
4.2
Istanbul Stock Exchange money market funds
-
-
-
-
-
4.3
Obligations under repurchase agreements
187.512
-
187.512
59.753
-
59.753
V.
SECURITIES ISSUED (Net)
-
-
-
-
-
5.1
Bills
-
-
-
-
-
5.2
Asset backed securities
-
-
-
-
-
5.3
Bonds
-
-
-
-
-
VI.
FUNDS
-
-
-
-
-
6.1
Borrower funds
-
-
-
-
-
6.2
Others
-
-
-
-
-
VII.
MISCELLANEOUS PAYABLES
2.102
65
2.167
2.212
40
2.252
VIII.
OTHER EXTERNAL RESOURCES PAYABLE (4)
1.063
2.569
3.632
284
241
525
IX.
FACTORING PAYABLES
-
-
-
-
-
X.
LEASE PAYABLES (Net)
(5)
-
-
-
-
-
10.1
Finance lease payables
-
-
-
-
-
10.2
Operational lease payables
-
-
-
-
-
10.3
Others
-
-
-
-
-
10.4
Deferred expenses (-)
-
-
-
-
-
XI.
DERIVATIVE FINANCIAL LIABILITIES HELD
FOR RISK MANAGEMENT
(6)
-
-
-
-
-
11.1
Fair value hedges
-
-
-
-
-
11.2
Cash flow hedges
-
-
-
-
-
11.3
Net foreign investment hedges
-
-
-
-
-
XII.
PROVISIONS
(7)
26.437
19.478
45.915
18.719
20.083
38.802
12.1
General provisions
14.833
-
14.833
8.408
-
8.408
12.2
Restructuring reserves
-
-
-
-
-
12.3
Reserve for employee benefits
11.110
7.084
18.194
9.918
5.333
15.251
12.4
Insurance technical provisions (Net)
-
-
-
-
-
12.5
Other provisions
494
12.394
12.888
393
14.750
15.143
XIII.
TAX LIABILITY
(8)
8.573
-
8.573
12.886
-
12.886
13.1
Current tax liability
5.544
-
5.544
8.052
-
8.052
13.2
Deferred tax liability
3.029
-
3.029
4.834
-
4.834
XIV.
LIABILITIES FOR ASSETS HELD FOR SALE AND
ASSETS OF DISCONTINUED OPERATIONS (Net) (9)
-
-
-
-
-
14.1
Held for sale
-
-
-
-
-
14.2
Discontinued operations
-
-
-
-
-
XV.
SUBORDINATED DEBTS
(10)
-
-
-
-
-
XVI.
SHAREHOLDERS' EQUITY
(11)
426.707
-
426.707
514.881
-
514.881
16.1
Paid-in capital
135.000
-
135.000
135.000
-
135.000
16.2
Capital reserves
31.866
-
31.866
31.866
-
31.866
16.2.1 Share premium
-
-
-
-
-
16.2.2 Share cancellation profits
-
-
-
-
-
16.2.3 Securities value increase fund
-
-
-
-
-
16.2.4 Revaluation surplus on tangible assets
-
-
-
-
-
16.2.5 Revaluation surplus on intangible assets
-
-
-
-
-
16.2.6 Revaluation surplus on investment property
-
-
-
-
-
16.2.7 Bonus shares of associates, subsidiaries and joint-ventures
-
-
-
-
-
16.2.8 Hedging reserves (effective portion)
-
-
-
-
-
16.2.9 Revaluation surplus on assets held for sale and assets
of discontinued operations
-
-
-
-
-
16.2.10 Other capital reserves
31.866
-
31.866
31.866
-
31.866
16.3
Profit reserves
257.754
-
257.754
243.908
-
243.908
16.3.1 Legal reserves
57.679
-
57.679
44.138
-
44.138
16.3.2 Status reserves
-
-
-
-
-
16.3.3 Extraordinary reserves
200.075
-
200.075
199.770
-
199.770
16.3.4 Other profit reserves
-
-
-
-
-
16.4
Profit or loss
2.087
-
2.087
104.107
-
104.107
16.4.1 Prior periods profit / loss
-
-
-
-
-
16.4.2 Current period profit / loss
2.087
-
2.087
104.107
-
104.107
TOTAL LIABILITIES
1.596.858
762.772
2.359.630
931.262
365.704 1.296.966
56
Deutsche Bank
Annual Report 2013
Unconsolidated Off-Balance Sheet Commitments As
At 31 December 2013
II. OFF-BALANCE SHEET ITEMS
OFF-BALANCE SHEET
Note (5 - III)
TL
Current period
31 December 2013
FC
Total
A.
I.
1.1
1.1.1
1.1.2
1.1.3
1.2
1.2.1
1.2.2
1.3
1.3.1
1.3.2
1.4
1.5
1.5.1
1.5.2
1.6
1.7
1.8
1.9
II.
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6
2.1.7
2.1.8
2.1.9
2.1.10
TL
Prior period
31 December 2012
FC
Total
OFF-BALANCE SHEET COMMITTMENTS (I+II+III) 2.591.374
3.558.125
6.149.499
1.231.739
2.169.710
3.401.449
GUARANTIES AND WARRANTIES
(1)
23.472
163.946
187.418
23.424
288.437
311.861
Letters of guarantee
23.472
155.891
179.363
22.696
214.424
237.120
Guarantees subject to State Tender Law -
-
-
-
-
Guarantees given for foreign trade operations
-
-
-
-
-
Other letters of guarantee
23.472
155.891
179.363
22.696
214.424
237.120
Bank acceptances
-
-
-
728
-
728
Import letter of acceptance
-
-
-
728
-
728
Other bank acceptances
-
-
-
-
-
Letters of credit
-
6.412
6.412
-
15.184
15.184
Documentary letters of credit
-
6.412
6.412
-
15.184
15.184
Other letters of credit
-
-
-
-
-
Guaranteed prefinancings
-
-
-
-
-
Endorsements
-
-
-
-
-
Endorsements to the Central Bank of Turkey
-
-
-
-
-
Other endorsements
-
-
-
-
-
Underwriting commitments
-
-
-
-
-
Factoring related guarantees
-
-
-
-
-
Other guarantees
-
-
-
-
-
Other sureties
-
1.643
1.643
-
58.829
58.829
COMMITMENTS
(1) 1.849.935
2.135.317
3.985.252
837.938
1.149.101
1.987.039
Irrevocable commitments 1.617.589
1.355.517
2.973.106
750.667
382.185
1.132.852
Asset purchase commitments
767.543
910.272
1.677.815
213.497
262.970
476.467
Deposit purchase and sales commitments
-
-
-
-
-
Share capital commitments to associates and subsidiaries
-
-
-
-
-
Loan granting commitments
849.997
-
849.997
537.140
-
537.140
Securities issuance brokerage commitments
-
-
-
-
-
Commitments for reserve deposit requirements
-
-
-
-
-
Commitments for cheque payments
44
-
44
29
-
29
Tax and fund obligations on export commitments
5
-
5
1
-
1
Commitments for credit card limits
-
-
-
-
-
Commitments for credit cards and banking services
related promotions
-
-
-
-
-
2.1.11 Receivables from "short" sale commitments on securities
-
-
-
-
-
2.1.12 Payables from "short" sale commitments on securities
-
-
-
-
-
2.1.13 Other irrevocable commitments
-
445.245
445.245
-
119.215
119.215
2.2
Revocable commitments
232.346
779.800
1.012.146
87.271
766.916
854.187
2.2.1 Revocable loan granting commitments
232.346
779.800
1.012.146
87.271
766.916
854.187
2.2.2 Other revocable commitments
-
-
-
-
-
III.
DERIVATIVE FINANCIAL INSTRUMENTS
(2)
717.967
1.258.862
1.976.829
370.377
732.172
1.102.549
3.1
Derivative financial instruments held for risk management
-
-
-
-
-
3.1.1 Fair value hedges
-
-
-
-
-
3.1.2 Cash flow hedges
-
-
-
-
-
3.1.3 Net foreign investment hedges
-
-
-
-
-
3.2
Trading derivatives
717.967
1.258.862
1.976.829
370.377
732.172
1.102.549
3.2.1 Forward foreign currency purchases/sales
362.854
372.537
735.391
126.537
194.995
321.532
3.2.1.1 Forward foreign currency purchases
188.691
179.172
367.863
81.385
79.391
160.776
3.2.1.2 Forward foreign currency sales
174.163
193.365
367.528
45.152
115.604
160.756
3.2.2 Currency and interest rate swaps
355.113
886.325
1.241.438
243.840
537.177
781.017
3.2.2.1 Currency swaps-purchases
171.637
449.274
620.911
116.014
274.401
390.415
3.2.2.2 Currency swaps-sales
183.476
437.051
620.527
127.826
262.776
390.602
3.2.2.3 Interest rate swaps-purchases
-
-
-
-
-
3.2.2.4 Interest rate swaps-sales
-
-
-
-
-
3.2.3 Currency, interest rate and security options
-
-
-
-
-
3.2.3.1 Currency call options
-
-
-
-
-
3.2.3.2 Currency put options
-
-
-
-
-
3.2.3.3 Interest rate call options
-
-
-
-
-
3.2.3.4 Interest rate put options
-
-
-
-
-
3.2.3.5 Security call options
-
-
-
-
-
3.2.3.6 Security put options
-
-
-
-
-
3.2.4 Currency futures
-
-
-
-
-
3.2.4.1 Currency futures-purchases
-
-
-
-
-
3.2.4.2 Currency futures-sales
-
-
-
-
-
3.2.5 Interest rate futures
-
-
-
-
-
3.2.5.1 Interest rate futures-purchases
-
-
-
-
-
3.2.5.2 Interest rate futures-sales
-
-
-
-
-
3.2.6 Others
-
-
-
-
-
B.
CUSTODY AND PLEDGED ITEMS (IV+V+VI) 45.347.241
30.270
45.377.511
41.302.841
22.661
41.325.502
IV.
ITEMS HELD IN CUSTODY
(5) 45.347.241
30.270
45.377.511
41.302.841
22.661
41.325.502
4.1
Customers' securities held 37.802.836
-
37.802.836
34.644.667
-
34.644.667
4.2
Investment securities held in custody 7.510.698
-
7.510.698
6.642.063
-
6.642.063
4.3
Checks received for collection
33.707
8.927
42.634
16.111
4.835
20.946
4.4
Commercial notes received for collection
-
-
-
-
-
4.5
Other assets received for collection
-
-
-
-
-
4.6
Assets received through public offering
-
-
-
-
-
4.7
Other items under custody
-
21.343
21.343
-
17.826
17.826
4.8
Custodians
-
-
-
-
-
V.
PLEDGED ITEMS
-
-
-
-
-
5.1
Securities
-
-
-
-
-
5.2
Guarantee notes
-
-
-
-
-
5.3
Commodities
-
-
-
-
-
5.4
Warranties
-
-
-
-
-
5.5
Real estates
-
-
-
-
-
5.6
Other pledged items
-
-
-
-
-
5.7
Pledged items-depository
-
-
-
-
-
VI.
CONFIRMED BILLS OF EXCHANGE AND SURETIES
-
-
-
-
-
TOTAL OFF-BALANCE SHEET ITEMS (A+B) 47.938.615
3.588.395
51.527.010
42.534.580
2.192.371
44.726.951
57
Deutsche Bank
Annual Report 2013
Unconsolidated Income Statement for the Years Ended
31 December 2013
III. INCOME STATEMENT
Current period
1 January-
INCOME AND EXPENSE ITEMS
Note (5 - IV) 31 December 2013
Prior period
1 January31 December 2012
I.
INTEREST INCOME
(1)
158.897
1.1 Interest income from loans
37.370
1.2 Interest income from reserve deposits
-
1.3 Interest income from banks
7.569
1.4 Interest income from money market transactions
27.891
1.5 Interest income from securities portfolio
85.707
1.5.1 Trading financial assets
85.707
1.5.2 Financial assets valued at fair value through profit or loss
-
1.5.3 Financial assets available-for-sale
-
1.5.4 Investments held-to-maturity
-
1.6 Finance lease income
-
1.7 Other interest income
360
II.
INTEREST EXPENSE
(2)
26.805
2.1 Interest on deposits
7.122
2.2 Interest on funds borrowed
6.179
2.3 Interest on money market transactions
13.504
2.4 Interest on securities issued
-
2.5 Other interest expenses
-
III. NET INTEREST INCOME / EXPENSE (I - II)
132.092
IV. NET FEES AND COMMISSIONS INCOME / EXPENSE
55.947
4.1 Fees and commissions received
68.100
4.1.1 Non-cash loans
1.712
4.1.2 Others
(12)
66.388
4.2 Fees and commissions paid
12.153
4.2.1 Non-cash loans
-
4.2.2 Others
(12)
12.153
V. DIVIDEND INCOME
(3)
-
VI. NET TRADING INCOME/LOSSES (Net)
(4)
(100.171)
6.1 Trading account income/losses
(55.323)
6.2 Income/losses from derivative financial instruments
136.715
6.3 Foreign exchange gains/losses
(181.563)
VII. OTHER OPERATING INCOME
(5)
16.433
VII. TOTAL OPERATING PROFIT (III+IV+V+VI+VII)
104.301
IX. PROVISION FOR LOSSES ON LOANS AND RECEIVABLES (-)
(6)
10.170
X. OTHER OPERATING EXPENSES (-)
(7)
89.999
XI. NET OPERATING PROFIT/LOSS (VIII-IX-X)
4.132
XII. INCOME RESULTED FROM MERGERS
-
XIII. INCOME/LOSS FROM INVESTMENTS UNDER EQUITY ACCOUNTING
-
XV GAIN/LOSS ON NET MONETARY POSITION
-
XV. PROFIT/LOSS BEFORE TAXES (XI+XII+XIII+XIV)
(8)
4.132
XVI. PROVISION FOR TAXES
(9)
2.045
16.1 Current tax charge
3.850
16.2 Deferred tax charge/(credit)
(1.805)
XVII. NET OPERATING PROFIT/LOSS AFTER TAXES (XV-XVI)
(10)
2.087
XVIII INCOME FROM DISCONTINUED OPERATIONS
-
18.1 Income from assets held for sale
-
18.2 Income from sale of associates, subsidiaries and joint-ventures
-
18.3 Others
-
XIX. EXPENSES FROM DISCONTINUED OPERATIONS (-)
-
19.1 Expenses on assets held for sale
-
19.2 Expenses on sale of associates, subsidiaries and joint-ventures
-
19.3 Others
-
XX. PROFIT/LOSS BEFORE TAXES ON DISCONTINUED OPERATIONS (XVIII-XIX)
-
XXI. PROVISION FOR TAXES OF DISCONTINUED OPERATIONS
-
21.1 Current tax charge
-
21.2 Deferred tax charge/(credit)
-
XXII. NET PROFIT / LOSS AFTER TAXES ON DISCONTINUED OPERATIONS
(XX+XXI)
-
XVIII.NET PERIOD PROFIT/LOSS (XVII+XXII)
(11)
2.087
Earnings Per Share (TL Full)
(3.XXIV)
0,0016
301.467
28.598
9.847
34.670
227.955
227.955
397
51.318
11.943
2.513
36.825
37
250.149
45.105
54.222
1.668
52.554
9.117
9.117
(85.818)
(36.730)
(53.951)
4.863
7.511
216.947
1.804
84.511
130.632
130.632
26.525
26.830
(305)
104.107
104.107
0,0771
IV. STATEMENT OF INCOME/EXPENSE ITEMS RECOGNIZED UNDER EQUITY
Current period
Prior period
INCOME/EXPENSE ITEMS RECOGNIZED UNDER EQUITY
31 December 2013
31 December 2012
I.
MARKET VALUE GAINS ON AVAILABLE FOR SALE ASSETS ACCOUNTED UNDER "SECURITIES VALUE INCREASE FUND"
-
II. REVALUATION SURPLUS ON TANGIBLE ASSETS
-
III. REVALUATION SURPLUS ON INTANGIBLE ASSETS
-
IV. TRANSLATION DIFFERENCES FOR TRANSACTIONS IN FOREIGN CURRENCIES
-
V. GAIN/LOSS ON DERIVATIVE FINANCIAL ASSETS HELD FOR CASH FLOW HEDGES (effective portion)
-
VI. GAIN/LOSS ON DERIVATIVE FINANCIAL ASSETS HELD FOR HEDGES OF NET INVESTMENT IN FOREIGN OPERATIONS (effective portion)
-
VII. EFFECTS OF CHANGES IN ACCOUNTING POLICIES AND CORRECTIONS
-
VIII. OTHER INCOME/EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS' EQUITY AS PER TAS
-
IX. DEFERRED TAXES ON VALUE INCREASES/DECREASES
-
X. NET INCOME/EXPENSE ITEMS ACCOUNTED DIRECTLY UNDER SHAREHOLDERS' EQUITY (I+II+III+IV+V+VI+VII+VIII+IX)
-
XI. CURRENT PROFIT/LOSSES
2.087
104.107
11.1 Net changes in fair value of securities (transferred to income statement)
-
11.2 Gains/losses on derivative financial assets held for cash flow hedges, reclassified and recorded in income statement
-
11.3 Gains/losses on hedges of net investment in foreign operations, reclassified and recorded in income statement
-
11.4Others
2.087
104.107
XII. TOTAL PROFIT/LOSSFOR THE YEAR (X+XI)
2.087
104.107
Unconsolidated Statement of Income and Expense Items Accounted in Equity
For the Years Ended 31 December 2013
Deutsche Bank
Annual Report 2013
58
STATEMENT OF CHANGES IN EQUITY
Openning Balance
(5.II.11) 135.000
31.866
-
- 44.138
-
199.770
-
104.107
-
-
-
-
-
-
Changes during the period
Increase / Decrease related to merger -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Marketable securities value increase fund
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Hedging (Effective portion)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Cash-flow hedge
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Hedge of net investment in foreign operations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Tangible assets revaluation differences -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Intangible assets revaluation differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bonus shares obtained from associates, subsidiaries
and jointly controlled entities (Joint Vent.)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Foreign exchange differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Disposal of assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Reclassification of assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Effect of change in equities of associates on
bank's equity
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XII.
Capital increase
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.1 Cash
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.2 Internal sources
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIII. Share issuance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIV. Share cancellation profits
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XV.
Effect of inflation on paid-in capital
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVI. Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVII. Net profit for the perod
-
-
-
-
-
-
-
-
2.087
-
-
-
-
-
-
XVIII. Profit distribution -
-
-
- 13.541
-
305
- (104.107)
-
-
-
-
-
-
18.1 Dividends distributed 5.V.5
-
-
-
-
-
-
- (90.261)
-
-
-
-
-
-
18.2 Transfers to reserves
5.V.5
-
-
-
- 13.541
-
305
- (13.846)
-
-
-
-
-
-
18.3 Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Closing Balance (III+IV+V…+XVI+XVII+XX) 135.000
31.866
-
- 57.679
-
200.075
-
2.087
-
-
-
-
-
-
I.
II.
III.
IV.
4.1
4.2
V.
VI.
VII.
VIII.
IX.
X.
XI.
Opening Balance
(5.II.11) 135.000
31.866
-
- 42.534
-
175.715
-
32.073
-
-
-
-
-
-
Changes during the period
Increase / Decrease related to merger -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Marketable securities value increase fund
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Hedging (Effective portion)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Cash-flow hedge
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Hedge of net investment in foreign operations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Tangible assets revaluation differences -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Intangible assets revaluation differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bonus shares obtained from associates, subsidiaries
and jointly controlled entities (Joint Vent.)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Foreign exchange differences
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Disposal of assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Reclassification of assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Effect of change in equities of associates
on bank's equity
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XII.
Capital increase
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.1 Cash
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.2 Internal sources
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIII. Share issuance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XIV. Share cancellation profits
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XV.
Effect of inflation on paid-in capital
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVI. Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XVII. Net profit for the perod
-
-
-
-
-
-
-
-
104.107
-
-
-
-
-
-
XVIII. Profit distribution -
-
-
- 1.604
-
24.055
- (32.073)
-
-
-
-
-
-
18.1 Dividends distributed -
-
-
-
-
-
(6.414)
-
-
-
-
-
-
-
-
18.2 Transfers to reserves
-
-
-
- 1.604
-
30.469
- (32.073)
-
-
-
-
-
-
18.3 Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Closing Balance (III+IV+V…+XVI+XVII+XX) 135.000
31.866
-
- 44.138
-
199.770
104.107
-
-
-
-
-
-
Current Period - 1 January 2013
I.
II.
III.
IV.
4.1
4.2
V.
VI.
VII.
VIII.
IX.
X.
XI.
417.188
2.087
(90.261)
(90.261)
426.707
-
-
514.881
104.107
(6.414)
(6.414)
514.881
-
-
Bonus Shares
Marketable Tangible and
Obtained from
Revaluation
Effect of
Current
Prior
Securities
Intangible Associates, Subs
Surplus on
Inflation Inflation
Share period net period net
Value
Assets
nd Jointly Assets Held
Note on Paid-in on Paid in Share cancellation
Legal
Status Extraordinary
Other Net Profit /
Profit /
Increase Revaluation
Controlle
Hedging
for sale and on
Total
Prior Period – 1 January 2012
Ref.
capital capital premiums
profits reserves reserves
reserves reserves
loss
loss
Fund
Differences
Entities
reserves
Disc. Operations
Equity
V.
Unconsolidated Statement of Changes in Equity
For the Year Ended 31 December 2013
Deutsche Bank
Annual Report 2013
59
Deutsche Bank
Annual Report 2013
60
Unconsolidated Statement of Cash Flows
For the Years Ended 31 December 2013
VI. STATEMENT OF CASH FLOWS
Current period
Prior period
1 January - 31 1 January - 31 Note December 2013 December 2012
A.
CASH FLOWS FROM BANKING OPERATIONS
1.1
Operating profit before changes in operating assets
and liabilities
(9.571)
131.841
1.1.1 Interests received
147.508
306.858
1.1.2 Interests paid
(25.551)
(52.596)
1.1.3 Dividend received
-
1.1.4 Fees and commissions received
68.100
54.222
1.1.5 Other income
153.148
7.511
1.1.6 Collections from previously written-off loans and receivables
-
1.1.7 Payments to personnel and service suppliers
(22.605)
(25.116)
1.1.8 Taxes paid
(10.353)
(19.289)
1.1.9 Others
(5.VI.1)
(319.818)
(139.749)
1.2
Changes in operating assets and liabilities
375.671
(264.621)
1.2.1 Net (increase) decrease in financial assets held for trading
(167.648)
574.231
1.2.2 Net (increase) decrease in financial assets valued at fair value
through profit or loss
-
1.2.3 Net (increase) decrease in due from banks and other
financial institutions
(57.450)
59.937
1.2.4 Net (increase) decrease in loans
(521.977)
147.221
1.2.5 Net (increase) decrease in other assets
(12.626)
(7.111)
1.2.6 Net increase (decrease) in bank deposits
270.727
58.900
1.2.7 Net increase (decrease) in other deposits
(108.495)
37.002
1.2.8 Net increase (decrease) in funds borrowed
836.782
(371.850)
1.2.9 Net increase (decrease) in matured payables
-
1.2.10 Net increase (decrease) in other liabilities
136.358
(762.951)
I.
Net cash used from banking operations
366.100
(132.780)
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
Net cash used in investing activities
(1.930)
(4.980)
2.1
Cash paid for purchase of associates, subsidiaries and joint-ventures
-
2.2
Cash obtained from sale of associates, subsidiaries and joint-ventures
-
2.3
Purchases of tangible assets
(5.I.12)
(390)
(2.347)
2.4
Sales of tangible assets
-
2.5
Cash paid for purchase of financial assets available-for-sale -
2.6
Cash obtained from sale of financial assets available-for-sale
-
2.7
Cash paid for purchase of investments held-to-maturity
-
2.8
Cash obtained from sale of investments held-to-maturity
-
2.9
Others
(1.540)
(2.633)
C. CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net cash used in financing activities
(90.261)
(6.431)
3.1
Cash obtained from funds borrowed and securities issued
-
3.2
Cash used for repayment of funds borrowed and securities issued
-
3.3
Equity instruments issued
-
3.4
Dividends paid
(5.V.5)
(90.261)
(6.414)
3.5
Payments for financial leases
-
(17)
3.6
Others
-
IV.
Effect of change in foreign exchange rate on cash and cash equivalents
6.098
(6.856)
V.
Net increase in cash and cash equivalents
280.007
(151.047)
VI.
Cash and cash equivalents at beginning of period
(5.VI.3)
140.478
291.525
VII.
Cash and cash equivalents at the end of period
(5.VI.3)
420.485
140.478
Deutsche Bank
Annual Report 2013
61
Statement of Profit Distribution for the Years Ended
31 December 2013
VII. STATEMENTS OF PROFIT DISTRIBUTION
(*)
Current period Prior period
31 December 2013
31 December 2012
I.
DISTRIBUTION OF CURRENT YEAR INCOME
1.1 CURRENT YEAR INCOME
4.132
130.632
1.2 TAXES AND DUTIES PAYABLE
(2.045)
(26.525)
1.2.1 Corporate tax (Income tax)
(3.850)
(26.830)
1.2.2 Income witholding tax
-
1.805
305
1.2.3 Other taxes and duties (**)
A.
NET INCOME FOR THE YEAR (1.1-1.2) 2.087
104.107
1.3 PRIOR YEARS LOSSES (-)
-
1.4 FIRST LEGAL RESERVES (-)
-
5.190
1.5 OTHER STATUTORY RESERVES (-)
-
B.
NET INCOME AVAILABLE FOR DISTRIBUTION [(A-(1.3+1.4+1.5)]
2.087
98.917
1.6 FIRST DIVIDEND TO SHAREHOLDERS (-)
-
6.750
1.6.1 To owners of ordinary shares
-
6.750
1.6.2 To owners of preferred shares
-
1.6.3 To owners of preferred shares (preemptive rights)
-
1.6.4 To profit sharing bonds
-
1.6.5 To holders of profit and loss sharing certificates
-
1.7 DIVIDENDS TO PERSONNEL (-)
-
1.8 DIVIDENDS TO BOARD OF DIRECTORS (-)
-
1.9 SECOND DIVIDEND TO SHAREHOLDERS (-)
-
83.511
-
83.511
-
-
-
-
1.10 SECOND LEGAL RESERVES (-)
-
8.351
1.11 STATUTORY RESERVES (-) -
1.12 GENERAL RESERVES
-
305
1.13 OTHER RESERVES
-
1.14 SPECIAL FUNDS
-
II.
DISTRIBUTION OF RESERVES
2.1 APPROPRIATED RESERVES
-
2.2 SECOND LEGAL RESERVES (-)
-
2.3 DIVIDENDS TO SHAREHOLDERS (-)
-
-
-
-
-
-
2.4 DIVIDENDS TO PERSONNEL (-)
-
2.5 DIVIDENDS TO BOARD OF DIRECTORS (-)
-
III.
EARNINGS PER SHARE
3.1 TO OWNERS OF ORDINARY SHARES
0,0016
0,0771
3.2 TO OWNERS OF ORDINARY SHARES (%)
0,2
7,7
3.3 TO OWNERS OF PRIVILAGED SHARES
-
3.4 TO OWNERS OF PRIVILAGED SHARES (%)
-
IV.
DIVIDEND PER SHARE
4.1 TO OWNERS OF ORDINARY SHARES
-
0,067
4.2 TO OWNERS OF ORDINARY SHARES (%)
-
6,7
4.3 TO OWNERS OF PRIVILAGED SHARES
-
4.4 TO OWNERS OF PRIVILAGED SHARES (%)
-
(*)
As of the date of this report the decision of profit distribution in the current year has not been made since the General
Assembly meeting has not conducted yet.
(**)
According to BRSA circular numbered BDDK.DZM.2/13/1-a-3 and dated 8 December 2004 net deferred tax income is not
subjected to profit distribution and capital increase.
Deutsche Bank
Annual Report 2013
62
At 31 December 2013
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
I. Basis of presentation
1.aDisclosures on the preparation of financial statements and its explanatory notes in accordance with the Turkish
Accounting Standards and the Regulation on Accounting Applications for Banks and Safeguarding of Documents
As prescribed in the Article 37 of the Banking Act No. 5411, the Bank prepares its financial statements and underlying
documents in accordance with the “Regulation on the Procedures and Principles for Accounting Practices and Retention of
Documents by Banks” and Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”), their
explanations and interpretations (together “Reporting Standards”).
The unconsolidated financial statements have been prepared in TL, under the historical cost convention as modified in
accordance with inflation adjustments until 31 December 2004, except for the financial assets and liabilities which are
carried at fair value.
The preparation of unconsolidated financial statements in conformity with TAS requires the use of certain critical
accounting estimates by the Bank management to exercise its judgment on the assets and liabilities of the balance sheet
and contingent issues as of the balance sheet date. These estimates are being reviewed regularly and, when necessary,
suitable corrections are made and the effects of these corrections are reflected to the income statement. The explanation
on the impairment of intangible assets, one of the most important assumptions and estimations of the Bank, is presented
below Note XII.
1.b Accounting policies and measurement
The accounting policies and valuation principles applied in the preparation of these financial statements and valuation
principles are defined and applied in accordance with TAS. Those accounting policies and valuation principles are
explained in Notes II to XXIX below.
1.c Additional paragraph for convenience translation into English
The differences between accounting principles, as described in the preceding paragraphs and accounting principles
generally accepted in countries in which these unconsolidated financial statements are to be distributed and International
Financial Reporting Standards (“IFRS”) have not been quantified in these unconsolidated financial statements. Accordingly,
these 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. Basis of presentatiton of financial statements
The accounting rules and the valuation principles used in the preparation of the financial statements were implemented as
stated in the Reporting Standards.
Comments and changes on standards
New standards and interpretations in 2013
Except for the new standards summarised below, the accounting policies applied for the year ended 31 December 2012
have been applied consistently for the year ended 31 December 2013 in preparing these financial statements.
• TFRS 13 Fair Value Measurement (see note (i))
• TAS 19 Employee Benefits (2011) (see note (ii))
The nature and effects of the changes are explained below.
Deutsche Bank
Annual Report 2013
63
At 31 December 2013
(i) Fair Value Measurement
TFRS 13 Fair Value Measurement establishes a single framework for measuring fair value and making disclosures about
fair value measurements when such measurements are required or permitted by other TFRSs.
It unifies the definition of fair value as the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. It replaces and expands the disclosure
requirements about fair value measurements in other TFRSs, including TFRS 7 Financial Instruments: Disclosures.
In accordance with the transitional provisions of TFRS 13, the Company has applied the new fair value measurement
guidance prospectively and has not provided any comparative information for new disclosures. Notwithstanding the above,
the change had no significant impact on the measurements of the Company’s assets and liabilities.
(ii) Employee benefits
As a result of the amendments to TAS 19 (2011), all actuarial gains and losses should be recognised in equity and to be
applied retrospectively.
New standards and interpretations not yet adopted as of 31 December 2013
There have been new standards and interpretations not yet adopted to the accompanying unconsolidated financial
statements as of 31 December 2013. These standards and interpretations are:
• TFRS 9 Financial Instruments (see note (i))
• TAS 32 Financial instruments: Presentation (amendment): Offsetting financial assets and financial liabilities (see note (ii))
i. Financial Instruments
TFRS 9 Financial Instruments was published in April 2010 introducing new requirements as part of the project to replace
TAS 39 Financial Instruments: Recognition and Measurement.
TFRS 9 Financial Instruments, published on 27 April 2010 in the Government Gazette numbered 27564, introducing new
requirements as part of the project to replace TAS 39 Financial Instruments: Recognition and Measurement had been
published by the International Accounting Standards Board in November 2009. TFRS 9 can be summarised as follows.
TFRS 9 aims to reduce complexity in accounting for financial instruments and introduce a principles-based approach to
accounting for financial instruments. The principles-based approach to accounting for financial assets, as a result of the first
phase of the TFRS 9, aims to provide information that is useful and relevant for users of financial statements in predicting
uncertainties, timing and amounts of future cash flows by allowing users to use their own judgment.
TFRS 9 introduces two measurement categories for financial assets: fair value through profit or loss and amortised cost.
The distinction between the two models is based on the business model of each entity and nature of the contractual cash
flows of the financial assets. Entities will continue to apply the existing impairment and hedge accounting requirements
in TAS 39. TFRS 9 is applicable to annual reporting periods beginning on or after 1 January 2015 and early adoption is
permitted. The Bank does not plan to adopt this standard early and it is not expected that these amendments will have
significant impact on the financial position and financial performance of the Bank.
ii.TAS 32 Financial instruments: Presentation (amendment): Offsetting financial assets and financial liabilities
The amendments clarify that offsetting is required when an entity currently has a legally enforceable right to set off the
recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
They also clarify when gross settlement is equivalent to net settlement. The amendments are applicable to annual reporting
periods beginning on or after 1 January 2014 and applied on a retrospective basis. Early adoption is permitted if entities
provide disclosures in accordance with TFRS 7. The Bank does not plan to adopt this standard early and it is not expected
that these amendments will have significant impact on the financial position and financial performance of the Bank.
Deutsche Bank
Annual Report 2013
64
At 31 December 2013
III. E
xplanations on strategy of using financial instruments and foreign currency transactions
The main operations of the Bank are, interbank money market transactions, purchasing and selling marketable securities,
foreign currency transactions and providing collateralised cash, non-cash loans and custody services.
The Bank’s main funding sources are equity, deposit and borrowings from domestic and foreign financial institutions.
Bank’s assets mainly consist of placements in banks, reverse repo transactions, corporate loans and marketable securities
portfolio held for trading.
The purchasing and selling of the capital market instruments are the main activity of the Bank that generates earnings
over the average earnings of all of the operation segments of the Bank. The off balance sheet items are mostly comprised
of forward foreign currency purchases/sales transactions, letter of credits and letter of guarantees extended against cash
borrowings from foreign financial institutions.
Foreign currency risk, interest rate risk and liquidity risk are daily measured and monitored and the asset-liability
management is performed within the internal risk limits and legal limits
The Bank has no foreign currency available for sale financial instruments.
The Bank has no investments in foreign associates.
IV. Information related to investments in associates and subsidiaries
The Bank has no investments in associates and subsidiaries.
V. Explanations on forward, options and other derivative transactions
In accordance with the Turkish Accounting Standard 39 (TAS 39) “Financial Instruments: Recognition and Measurement”;
the forward foreign currency purchases/sales transactions and swap transactions, which are not considered as hedging
instruments, are classified as trading derivative instruments. A provision is made for the diminution in value of the
impaired financial asset and it is charged against the income for the year.
“Financial assets at fair value through profit or loss” are measured at fair value. If the fair value of derivative financial
instruments is positive, it is disclosed under the main account “Financial assets at fair value through profit or loss” in
“Trading derivative financial instruments” and if the fair value difference is negative, it is disclosed under “Trading
derivative financial liabilities”. Differences in the fair value of trading derivative instruments are accounted under “Trading
income/loss” in the income statement.
The fair values of the trading forward foreign currency purchases/sales transactions are measured with the internal pricing
models by taking the expectations from the market into account. The change in the fair values is recorded through the
period’s profit or loss.
The Bank records the spot legs of its currency swap transactions either on its balance sheet accounts or on it’s off balance
sheet accounts together with its forward currency transactions by taking the maturity dates of those transactions.
The Bank has no derivative financial instruments designated as hedging instruments or embedded derivative financial
instruments.
VI. Explanations on interest income and expenses
Interest income and expenses are recognised in the income statement on an accrual basis by using the effective interest
method.
The Bank ceases accruing interest income on non-performing loans and, any interest income accruals from such loans are
reversed and no income is accounted until the collection is made according to the related regulation.
VII. Explanations on fee and commission income and expense
Commissions received for various banking services are recorded when they are collected and other income and expense
items are recorded on an accrual basis. Fees and commissions received and paid and other loan fees and commissions
paid to financial institutions, income derived from agreements and asset purchases made on behalf of third parties are
recognised as income when they are realised.
Deutsche Bank
Annual Report 2013
65
Notes to The Unconsolidated Financial Statements
At 31 December 2013
VIII. Explanation on financial assets
The Bank classifies and accounts its financial assets as “Fair value through profit or loss”, “Available-for-sale”, “Loans and
receivables” or “Held-to-maturity”. The appropriate classification of financial assets of the Bank is determined at the time
of purchase by the Bank management, taking into consideration the purpose of holding the investment.
The purchase and sale transactions of those financial instruments are recognised and derecognised according to their
“Delivery dates”. The fair value differences between the transaction date and the delivery date of financial assets and
liabilities at fair value through profit or loss and financial assets available for sale are recorded.
a. Financial assets at fair value through profit or loss
Financial assets, classified as “Financial assets at fair value through profit or loss”, are trading financial assets and are
either acquired for generating profit from short-term fluctuations in the price or dealer’s margin, or are financial assets
included in a portfolio in which a pattern of short-term profit making exists independent from the acquisition purpose.
Trading financial assets are initially recognised at fair value and are subsequently re-measured at their fair value. However,
if fair values cannot be obtained from the fair market transactions, it is accepted that the fair value cannot be measured
reliably and that the financial assets are carried at “amortised cost” using the effective interest method.
All gains and losses arising from these evaluations are recognised in the income statement. Interest earned while holding
financial assets is reported as interest income and dividends received are included separately in dividend income.
Derivative financial instruments are treated as trading financial assets unless they are not designated as hedge instruments.
The principles regarding the accounting of derivative financial instruments are explained in detail in Note V of the related
section.
The difference between the cost values and fair values of the financial assets at fair value through profit or loss, is recorded
as accrued interest income or allowance for the impairment loss.
b. Loans and receivables
Loans and receivables are financial assets which are created by providing money, services or goods to a debtor. Loans
and receivables originated by the Bank are carried initially at cost and subsequently recognised at the amortised cost
value calculated using the effective interest method. The expenses incurred for the assets received as collateral are not
considered as transaction costs and are recognised in the expense accounts.
The Bank provides general and specific provisions based on the assessments and estimates of the management, by
considering the “Communiqué Related to Principles and Procedures on Determining the Qualifications of Banks’ Loans and
Other Receivables and the Provision for These Loans and Other Receivables” published in the Official Gazette No. 26333
dated 1 November 2006. In this context, the revised credit risk, general structure of the current loan portfolio, conditions of
the customers, non-financial information and economic conjuncture on the basis of the prudence principle are taken into
consideration by the Bank in determining the estimates.
Provision expenses are deducted from the net income of the year. If there is a collection from a receivable that is
provisioned previously, the amount is deducted from the “Specific Provisions” account and recorded as income to
“Provision for Loan Losses and Other Receivables”. Uncollectible receivables are written-off after all the legal procedures
have been finalised.
Cash loans in Turkish Lira are comprised of the foreign currency indexed loans, export guaranteed loans, fund resourced
loans and cash loans in foreign currency are comprised of the export loans and operating loans.
Foreign currency indexed loans are followed under the TL accounts by translating its original amount to TL by using the
historical foreign exchange rate of its opening date. Repayments are calculated with the foreign exchange rate on the
payment date and the incurred foreign exchange gains/losses are recorded through the period’s profit or loss.
c. Held-to-maturity financial assets
The Bank has no held-to-maturity financial assets.
Deutsche Bank
Annual Report 2013
66
At 31 December 2012
d. Available-for-sale financial assets
The Bank has no available-for-sale financial assets.
IX. IExplanations on impairment of financial assets
Financial asset or group of financial assets are reviewed at each reporting date to determine whether there is objective
evidence of impairment. If any such indication exists, the Bank estimates the amount of impairment.
Impairment losses occurs if, and only if, there is an objective evidence that the expected future cash flows of financial asset
or group of financial assets are adversely affected by an event(s) (“loss event(s)”) incurred subsequent to recognition. The
losses expected to incur due to future events are not recognised even if the probability of loss is high.
X. Explanations on offsetting financial assets
The Bank provides allowance for the impairment losses on the financial assets at fair value through profit or loss, when the
fair values are less than their carrying values. This allowance is netted from the carrying value of the related financial assets
group on the balance sheet.
The Bank provides specific provisions for loans and other receivables in accordance with the related regulations. This
allowance is netted from the carrying value of the loans and receivables on the asset side of the balance sheet.
Except for the matters explained above are offset and the net amount is reported in the balance sheet when the Bank has
a legally enforceable right to offset the recognised amounts and there is an intention to collect/pay related financial assets
and liabilities on a net basis, or to realise the asset and settle the liability simultaneously.
XI.Explanations on sales and repurchase agreements and securities lending transactions
Securities subject to repurchase agreements (“Repo”) are classified as “Financial assets at fair value through profit or
loss”, “Available-for-sale” and “Held-to-maturity” according to the investment purposes of the Bank and measured
according to the portfolio to which they belong. Funds obtained from repurchase agreements are accounted under “Funds
Provided under Repurchase Agreements” in liabilities and the difference between the sale and repurchase price is accrued
over the life of repurchase agreements using the effective interest method.
Funds given against securities purchased under agreements (“Reverse repo”) to resell are accounted under “Receivables
from Reverse Repurchase Agreements” on the balance sheet. The difference between the purchase and determined resell
price is accrued over the life of repurchase agreements using the “effective interest method”. The Bank has no securities
lending transactions.
As of 31 December 2013 and 31 December 2012, the Bank has no reverse repo.
XII. Explanations on assets held for resale and discontinued operations
There are no assets held for resale and discontinued operations as of 31 December 2013 and 31 December 2012.
XIII. Explanations on goodwill and other intangible assets
There are no goodwill and other intangible assets as of 31 December 2013 and 31 December 2012.
Intangible assets are measured at cost on initial recognition and any directly attributable costs of setting the asset to work
for its intended use are included in the initial measurement. Subsequently, intangible assets are carried at historical costs
after the deduction of accumulated amortisation and the provision for value decreases, if any.
Intangible assets are impaired when the book value exceeds the recoverable amount. Impairment indicates that losses
may be realised. When the indicators are present the Bank makes estimation on the recoverable amount. If there are no
indicators of impairment there is no need for the recoverable amount estimation. The explanation on the impairment of
intangible asset is presented in Note I-13 of Section Five.
67
Deutsche Bank
Annual Report 2013
At 31 December 2013
Intangibles are amortised over their estimated useful lives using the straight-line method. The useful life of the asset is
determined by assessing the expected useful life of the asset, technical, technological and other kinds of obsolescence and
all required maintenance expenses necessary to utilise the economic benefit of the asset.
The Bank’s intangible assets consist of rights and custody services acquired by the Bank on July 2007 (customer
relationship). The intangible assets are amortised over their useful lives on a straight line basis. The amortisation method
and the useful lives of the intangible assets are reassessed regularly at each year end. Rights and the customer relationship
are amortised with straight line method over 5 and 10 years, respectively.
XIV. Explanations on property and equipment
The property and equipment acquired before 31 December 2004 are recorded at restated historical costs in accordance with
inflation accounting and subsequent additions to 31 December 2004 are recorded at their historical purchase costs.
The property and equipments are depreciated over their estimated useful lives on a straight-line basis.
If the recoverable amounts of the tangible assets are different than their restated net book values, the Bank records other
income in the income statement or other expense or equity to be added to capital.
Expenditures for the repair and renewal of property and equipment are recognised as expense. The capital expenditures
made in order to increase the capacity of the tangible asset or to increase its future benefits are capitalised on the cost of
the tangible asset. The capital expenditures include the cost components which are used either to increase the useful life or
the capacity of the asset, or the quality of the product or to decrease the costs.
There are no restrictions such as pledges, mortgages or any other restrictions on the property and equipment as of 31
December 2013 and 31 December 2012.
There are no changes in the accounting estimates that would have significant effects in the current period or in the
following periods.
Depreciation rates and the estimated useful lives of tangible assets are as follows:
Motor Vehicles
Office Machinery
Furnitures
5 years
3 - 5 years
5 - 15 years
XV. Explanations on leasing transactions
Maximum length of the finance lease contracts is 4 years. The leased assets are classified under tangible assets and
depreciated over their useful lives with the rate of 20%. The payables related with those finance lease agreements are
recorded under “Lease payables” on the liability side of the balance sheet. The incurred interest expenses and foreign
exchange differences are recorded through the income statement.
In the event of the annulment of the operational lease contracts before its expiration date, the cash paid penalties are
recognised as expense in the related period. There are no operational lease contracts which are annulled by the Bank
before its expiration date.
Transactions regarding operational lease agreements are accounted on an accrual basis in accordance with the terms of the
related contracts.
The Bank, does not perform any finance lease transactions as “Lessor’’.
Deutsche Bank
Annual Report 2013
68
At 31 December 2013
XVI. Explanations on provisions and contingent commitments
Provisions and contingent liabilities except for the specific and general provisions recognised for loans and other
receivables are accounted in accordance with the “Turkish Accounting Standard for Provisions, Contingent Liabilities and
Contingent Assets” (“TAS 37”).
Provisions are recognised when the Bank has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable
estimate of the amount of the obligation can be made. The provision for contingent liabilities arising from past events
should be recognised in the same period of occurrence in accordance with the “Matching principle”. When the amount of
the obligation cannot be estimated and there is no possibility of an outflow of resources from the Bank, it is considered that
a “Contingent” liability exists and it is disclosed in the related notes to the financial statements.
XVII. Explanations on contingent assets
The contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow
of economic benefits to the Bank. If an inflow of economic benefits to the Bank has become probable, then the contingent
asset is disclosed in the footnotes to the financial statements. If it has become virtually certain that an inflow of economic
benefits will arise, the asset and the related income are recognised in the financial statements of the period in which the
change occurs.
XVIII. Explanations on obligations related to employee rights
In accordance with the existing Turkish Labor Law, the Bank is required to make lump-sum termination indemnities to each
employee whos has completed one year of service with the Bank and whose employment is terminated due to retirement
or for reasons other than resignation or misconduct and this amount is limited by the termination imdentiy upper limit.
Employee severance indemnities are not subject to legal funding requirements.
The provision has been calculated by estimating the present value of the future probable obligation of the Bank arising
from the retirement of employees. TAS 19 requires actuarial valuation methods to be developed to estimate the
enterprise’s obligation under defined benefit plans. Accordingly, assumptions on discount rate, expected rate of salary
increase and employee turnover rate is used in the calculation of the total liability. Each assumptions are reviewed on an
annual basis.
XIX. Explanations on taxation
Current tax
Many clauses of Corporate Tax Law No. 5520 which are valid starting from 1 January 2006, came into effect after being
published in Official Gazette No. 26205, dated 21 September 2006. According to the New Tax Law, the corporate tax rate
in Turkey is payable at the rate of 20% for 2013 (2012: 20%). The corporate tax rate is calculated on the total income of the
Bank after adjusting for certain disallowable expenses, exempt income and other allowances. No further tax is payable
unless the profit is distributed.
Dividends paid to non-resident corporations, which have a place of business in Turkey or to resident corporations are
not subject to withholding tax. Otherwise, dividends paid are subject to withholding tax at the rate of 15%. An increase in
capital via issuing bonus shares is not considered as profit distribution and thus does not incur withholding tax.
Corporations are required to pay advance corporate tax quarterly at a rate of 20% on their corporate income. Advance tax
is declared by the 14th and paid by the 17th day of the second month following each calendar quarter end. Advance tax paid
by corporations which is for the current period is credited against the annual corporation tax calculated on their annual
corporate income in the following year. Despite the offset, if there is temporary prepaid tax remaining, this balance can be
refunded or used to offset any other financial liabilities to the government.
A 75% portion of the capital gains derived from the sale of equity investments and immovable properties held for at least
two years is tax exempt, if such gains are added to paid-in capital or held in a special account under shareholder’s equity
for five years.
Under the Turkish Corporate Tax Law, losses can be carried forward to offset against future taxable income for up to five
years. Losses cannot be carried back to offset profits from previous periods.
Deutsche Bank
Annual Report 2013
69
At 31 December 2013
In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Tax returns are required to be
filled and delivered to the related tax office until the evening of the 25th of the fourth month following the balance sheet
date. Tax returns are open for five years from the beginning of the year following the date of filing during which period the
tax authorities have the right to audit tax returns, and the related accounting records on which they are based, and may
issue re-assessments based on their findings.
Deferred tax
According to the Turkish Accounting Standard 12 (TAS 12) “Income Taxes”; deferred tax assets and liabilities are
recognized on all taxable temporary differences arising between the carrying values of assets and liabilities in the financial
statements and their corresponding balances considered in the calculation of the tax base, except for the differences not
deductible for tax purposes and initial recognition of assets and liabilities which affect neither accounting nor taxable profit.
If transactions and events are recorded in the income statement, then the related tax effects are also recognised in the
income statement. However, if transactions and events are recorded directly in the shareholders’ equity, the related tax
effects are also recognised directly in the shareholders’ equity.
The deferred tax assets and liabilities presented on the financial statements by net basis (off-set).
Transfer pricing
The article no. 13 of the Corporate Tax Law describes the issue of transfer pricing under the title of “disguised profit
distribution” by way of transfer pricing. “The General Communiqué on Disguised Profit Distribution by Way of Transfer
Pricing” published at 18 November 2007, explains the application related issues on this topic.
According to this communiqué, if the taxpayers conduct transactions like purchase and sale of goods or services with the
related parties where the prices are not determined according to the arm’s length principle, then it will be concluded that
there is a disguised profit distribution by way of transfer pricing. Such disguised profit distributions will not be deducted
from the corporate tax base for tax purposes.
XX. Explanations on funds borrowed
Trading and derivative financial liabilities are valued with their fair values and the other financial liabilities are carried at
“amortised cost” using the effective interest method.
The Bank utilises various hedging techniques to minimise the currency, interest rate and liquidity risks of its financial
liabilities. No convertible bonds have been issued by the Bank.
XXI. Explanations on shares certificates issued
There is no issued share certificates for the period ended at 31 December 2013.
XXII. Explanations on bills of exchange and acceptances
As of 31 December 2013, the Bank has no bills of exchange and acceptances.
XXIII. Explanations on government grants
As of 31 December 2013, the Bank has no government grants.
XXIV. Explanations on profit reserves and profit distributions
Retained earnings as per the financial statements other than legal reserves are available for distribution, subject to the legal
reserve requirement referred to below.
Under the Turkish Commercial Code (“TCC”) the legal reserves are composed of first and second reserves. The TCC
requires first reserves to be 5% of the profit until the total reserve is equal to 20% of issued and fully paid-in share capital.
Second reserves are required to be 10% of all cash profit distributions that are in excess of 5% of the issued and fully paidin share capital. However holding companies are exempt from this application. According to the Turkish Commercial Code,
legal reserves can only be used to compensate accumulated losses and cannot be used for other purposes unless they
exceed 50% of paid-in capital.
Retained earnings except legal reserves are allowed for distribution on the condition being subjected to legal reserve
requirement as mentioned above. Deferred tax income can not be subjected to profit distribution.
Deutsche Bank
Annual Report 2013
70
At 31 December 2013
XXV. Explanations on earnings per share
Earnings per share disclosed in the income statement are calculated by dividing net profit/(loss) for the year to the
weighted average number of shares outstanding during the period concerned.
Current Period
Prior Period
Net Profit For the Year
2.087
104.107
Weighted Average Number of Issued Ordinary Shares
1.350.000.000
1.350.000.000
Total (Full TL)
0,0016
0,0771
In Turkey, companies can increase their share capital by making a pro-rata distribution of shares (“bonus shares”)
to existing shareholders from retained earnings. For the purpose of earnings per share computations, the weighted
average number of shares outstanding during the year has been adjusted in respect to bonus shares issued without a
corresponding change in resources by giving them a retroactive effect for the year in which they were issued and for each
earlier period.
XXVI. Explanations on related parties
For the purpose of these financial statements, shareholders, key management personnel and board members together with
their families and companies controlled by/affiliated with them, and associated companies are considered and referred to
as related parties in accordance with “Turkish Accounting Standard for Related Parties” (“TAS 24”). The transactions with
related parties are disclosed in detail in Note VII of Section Five.
XXVII. Explanations on cash and cash equivalents
For the purposes of the statement of cash flows, “Cash” includes cash, effectives, cash in transit, purchased cheques
and demand deposits including balances with the Central Bank; and “Cash equivalents” include interbank money market
placements, trading securities and time deposits at banks with original maturity periods of less than three months.
XXVIII. Explanations on segment reporting
Operational segment is distinguishable section of the Bank that has different characteristics from other operational
segments per earning and conducts the presentation of service group, associated bank products or a unique product.
Operating segments are disclosed in Note X in Section Four.
XXIX. Reclassifications
In order to be consistent with the presentation of financial statements dated 31 December 2013, there are some
reclassifications made on unconsolidated balance sheet and income statement as of and for the year ended 31 December
2012.
Accounting policies of unconsolidated financial statements dated 31 December 2013 applied consistently to all of the
periods presented and there has not been any reclassifications made in the comparative financial statements as at the end
of the reporting period.
Deutsche Bank
Annual Report 2013
71
At 31 December 2013
SECTION FOUR
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK
I.Explanations on Capital Adequacy Ratio
As of 31 December 2013 the Bank’s capital adequacy ratio is 24,81%. (31 December 2012: 49,36%)
1. Risk measurement methods in calculation of capital adequacy ratio
Capital adequacy ratio is calculated within the scope of the “Regulation on Measurement and Assessment of Capital
Adequacy Ratios of Banks (the “Regulation”)”, “Regulation on Credit Risk Mitigation Techniques” and “Regulation on
Calculation of Risk Weighted Amounts for Securitisations” published in the Official Gazette no.28337 dated 28 June 2012
and the “Regulation on Equities of Banks” published in the Official Gazette no.26333 dated 1 November 2006.
In the calculation of capital adequacy ratio, the data prepared from accounting records in compliance with the current
legislation are used. Furthermore, the market and operational risk are also taken into account within the framework of
regulations.
In the calculation process of credit risk, asset types determined in 6th article of the Regulation, ratings and credit risk
mitigators are taken into account. “Simple financial collateral approach” is taken into account for banking book items.
The amount subject to credit risk for non cash loans are considered by using the conversion rates which are defined in the
5th article of “Regulation On Measurement And Evaluation Of Capital Adequacy Of Banks”. Depleted and amortized assets
are taken into consideration by net amounts which are calculated by the deduction of depreciation cost and provisions. The
items which are deducted from shareholders’ equity and trading book items are not considered in the calculation of risk
weighted assets.
As per the article 5 of the Regulation, the “counterparty credit risk” is calculated for repurchase transactions, reverse
repurchase transactions and securities. In the calculations regarding counterparty credit risk, for the trading account “
Comprehensive Financial Guarantee Method” is used.
Deutsche Bank
Annual Report 2013
72
At 31 December 2013
2. Information related to capital adequacy ratio
As of 31 December 2013:
Risk weights
0%
10%
20%
50%
75%
100%
150%
200%
Weighted Credit Risk
Risk classifications:
Conditional and unconditional
exposures to central governments
or central banks
275.772
-
-
-
-
3.843
-
exposures to regional
governments or local authorities
-
-
-
-
-
-
-
exposures to administrative bodies
and non-commercial undertakings
-
-
-
-
-
-
-
Conditional and unconditional exposures
to multilateral development banks
-
-
-
-
-
-
-
exposures to international organisations
-
-
-
-
-
-
-
to banks and brokerage houses
-
- 346.569
64.902
- 111.573
-
to corporates -
-
14.907
-
- 854.585
-
Conditional and unconditional retail
exposures
-
-
-
-
662 119.281
-
secured by real estate property
-
-
-
-
-
-
-
Past due items -
-
-
-
-
-
-
Items in regulatory high-risk categories -
-
-
-
-
-
-
Exposures in the form of bonds secured
by mortgages -
-
-
-
-
-
-
Securitisation positions -
-
-
-
-
-
-
Short term exposures to banks,
brokerage houses and corporates -
-
-
-
-
-
-
Exposures in the form of collective
investment undertakings -
-
-
-
-
-
-
Other receivables
159
-
-
-
-
13.921
-
Total balance subject to credit risk
275.931
- 361.476
64.902
662 1.103.203
-
Value at credit risk
-
-
72.295
32.451
497 1.103.203
-
-
i.Summary information related to unconsolidated capital adequacy ratio
Current Period
Prior Period
Capital to be employed for credit risk (Amount subject to credit risk*0,08) (I)
96.676
49.175
Capital to be employed for market risk (II)
14.019
7.284
Capital to be employed for operational risk (III) 22.890
22.767
Shareholders’ equity
414.277
488.794
Shareholders’ equity / ((CRCR+-MRCR+ORCR ) * 12.5*100)
24,81
49,36
Deutsche Bank
Annual Report 2013
73
At 31 December 2013
ii. Information about equity items
Current Period
Prior Period
CORE CAPITAL
Paid-in capital
135.000
135.000
Nominal capital
135.000
135.000
Capital commitments (-)
-
Adjustment to paid-in capital
31.866
31.866
Share premium
-
Share repeal
-
Legal reserves
257.754
243.908
Adjustment to legal reserves
-
Profit
2.087104.107
Net Current period profit
2.087
104.107
Prior period profit
-
Provisions for possible losses up to 25% of core capital
-
Profit on sale of associates, subsidiaries and buildings
-
Primary subordinated loans
-
Loss that is not covered with reserves (-)
-
Net current period loss
-
Prior period loss
-
Development cost of operating lease (-)
235
344
Intangible assets (-)
27.028
34.151
Deferred-assets for tax which exceeds 10% of core capital (-)
-
-
Excess amount expressed in the Law (Article 56, 3rd paragraph) (-)
Total Core Capital
399.444
480.386
SUPPLEMENTARY CAPITAL
-
General reserves
14.833
8.408
45% of increase in revaluation fund of movables
-
45% of increase in revaluation fund of fixed assets
-
Free shares from investment and associates, subsidiaries and joint ventures that is
not recognized in profit
-
Primary subordinated loans which are ignored in the calculation of core capital
-
Secondary subordinated loans
-
45% of value increase fund of financial assets available for sale and associates and subsidiaries -
Adjustment to paid-in capital, profit reserves and previous years losses(except
adjustment to legal reserves)
-
Total Suplementary Capital
14.833
8.408
CAPITAL
DEDUCTIONS FROM THE CAPITAL
-
Partnership share on banks and financial institutions (domestic and abroad) that are not
consolidated, with a shareholding of 10% and above
-
The sum of partnership share on banks and financial institutions (domestic and abroad),
with shareholding of less than 10%, but exceeding 10% and more of the sum of core and
suplimentary capital of the bank
-
Loans extended to banks, financial institutions (domestic and abroad) and qualified
shareholders, like secondary subordinated loan and debt instruments purchased from these
institutions issued, like primary and secondary subordinated loan -
Loans extended being noncompliant with articles 50 and 51 of the Law
-
Net book values of properties owned, exceeding 50% of banks’ equity and properties, and
trade goods overtaken in exchange for loans and receivables that should be disposed
within five years in accordance with article 57 of the Law, but not yet disposed
-
Securitisation positions to be deducted from the shareholders' equity
-
Other
-
Total Equity
414.277
488.794
Deutsche Bank
Annual Report 2013
74
At 31 December 2013
iii. Information on the Bank’s internal capital requirements within the scope of the internal capital adequacy assessment
process in order to evaluate the adequacy of the approach in terms of current and future activities
The Bank evaluates the interrelated components that are the part of The Bank’s management and decision making process
such risk appetite, strategy, capital and risk management policy and stress testing within the process of internal capital
adequacy evaluation for the risks that the Bank was exposed or may be exposed accordingly current risk profile. The
Bank formed the internal capital adequacy evaluation process within the framework risk management and strategy, risk
management processes, risk methods and risk infrastructure on the purpose of observing the current, future and under
stress conditions capital adequacy of the Bank’s and measuring, managing,observing and reducing the subjected risks
relating to evaluate the significant risks exposed. Under this framework, the Bank performs base-case and stress test
estimations by determining the risks faced including structural position risk, business, credit, group, liquidity, market,
operational, regulations and credibility risks considering growth targets of all business lines, strategic plans, sections
provides support service. Within the scope of this evaluation, the Bank uses like Pillar 2A of Internal Capital Requirement
Evaluation, Pillar 2B of Stress Test and Reverse Stress Test methods.
II. Explanations on credit risk
Loan customers are subject to the concentration risk limits according to their geographical segments, risk groups, or
sectors approved by thr Board of Directors. In compliance with the banking legislations the Bank does not work with the
untrustworthy individuals and corporate, which are listed in the international watch lists.
Credit limit allocation and credit extension procedures, forward transactions and the transactions related with the other
derivative instruments, the limits and the risk exposures of the daily cash transactions of the customers are approved
by the different level of people from the Bank’s management team according to their related authorisation limits. The
risk limits and concentrations of the daily on and off balance sheet transactions are monitored per each customer by the
authorised people of the treasury department of the Bank.
The credit risk of the forward transactions is managed with the potential risks arising from the fluctuations in the market
and it is avoided from the transactions that could have significant credit risks.
The credit worthiness’ of customer is followed up on a regular basis in accordance with related regulations and accordingly
the credit limits of the customers are revised, if necessary. Statement documents received for loans that are audited in
accordance with regulations is consequential.
The Bank, as an active player in the international banking market, does not hold significant credit risk when compared to
the financial activities of the other international financial institutions.
The Bank’s cash loan portfolio is composed of 53 customers and non-cash loan portfolio is composed of 112 customers as
of 31 December 2013 (31 December 2012: 39 of cash loan portfolio and 101 of non-cash loans portfolio).
The share of Bank’s cash and non-cash loans from first top 100 loan customers in total cash and non-cash loan portfolio is
100% (31 December 2012: 100%).
Total cash and non-cash loans of first 100 customers constitute 39% and 0.36% of total balance sheet and the off-balance
sheet items, respectively.( 31 December 2012 : 34% and %0.64 )
The Bank’s calculated general provision for credit risk amounting to TL 14.833 as of 31 December 2013 (31 December 2012:
TL 8.408).
Deutsche Bank
Annual Report 2013
75
At 31 December 2013
a. Types of loans and specific provisions
Factoring
31 December 2013
Corporate
Consumer Receivables
Standard Loans
903.971
58
-
Loans under close monitoring
-
-
-
Non-performing loans
-
-
-
Specific provision (-)
-
-
-
Total
903.971
58
-
Total
904.029
904.029
Factoring
31 December 2012
Corporate Consumer Receivables
Standard Loans
381.811
94
-
Loans under close monitoring
-
-
-
Non-performing loans
-
-
-
Specific provision (-)
-
-
-
Total
381.811
94
-
Total
381.905
381.905
b. Loans and receivables past due but not impaired
None (31 December 2012: None).
c. Debt securities, treasury bills and other bills
Financial Assets
Available for Sale
Held to
at Fair Value Financial Maturity
31 December 2013
through P/L (Net)
Assets (Net)
Securities (Net)
Total
Moody’s Ba2 (*)
797.082
-
-
797.082
Total
797.082
-
-
797.082
Financial Assets
Available for Sale
Held to
at Fair Value Financial Maturity
31 December 2012
through P/L (Net)
Assets (Net)
Securities (Net)
Total
Moody’s 618.241
-
-
618.241
Ba2 (*)
Total
618.241
-
-
618.241
(*)
Consists of Turkish Republic government bonds and treasury bills.
d. Information on rating concentration
The Bank does not have any credit rating policy.
e. Fair value of collaterals (loans and advances to customers)
Guarantees received as at 31 December 2013 are presented in “Credit Risk Mitigation Techniques” disclosure.
Deutsche Bank
Annual Report 2013
76
At 31 December 2013
f.Credit risk is the risk reduction effects without taking into consideration the total amount of exposures after offsetting
transactions with different risk classes according to the types and amounts of disaggregated risks are listed below the
average for the period
Current Period Average Risk
Risk Amount(*)Amount(**)
Conditional and unconditional exposures to central governments or central banks
232.208
234.986
Conditional and unconditional exposures to regional governments or local authorities
-
Conditional and unconditional exposures to administrative bodies and non-commercial undertakings
-
Conditional and unconditional exposures to multilateral development banks
-
Conditional and unconditional exposures to international organisations
-
Conditional and unconditional exposures to banks and brokerage houses
505.549
339.598
Conditional and unconditional exposures to corporates 934.395
796.595
Conditional and unconditional retail exposures 119.943
103.159
Conditional and unconditional exposures secured by real estate property
-
Past due items -
Exposures in the form of bonds secured by mortgages -
Short term exposures to banks, brokerage houses and corporates -
Exposures in the form of collective investment undertakings -
Other receivables
14.080
11.129
(*)
Includes risk amounts before the effect of credit risk mitigation but after the credit conversions.
Average risk amounts are the arithmetical average of the risk amounts after conversion in January-December period.
(**)
Prior Period Average Risk
Risk Amount(*)Amount(**)
Conditional and unconditional exposures to central governments or central banks
162.059
161.201
Conditional and unconditional exposures to regional governments or local authorities
-
Conditional and unconditional exposures to administrative bodies and non-commercial undertakings
-
Conditional and unconditional exposures to multilateral development banks
-
Conditional and unconditional exposures to international organisations
-
Conditional and unconditional exposures to banks and brokerage houses
189.576
428.264
Conditional and unconditional exposures to corporates 487.347
592.122
Conditional and unconditional retail exposures 91.153
28.658
Conditional and unconditional exposures secured by real estate property
-
Past due items -
Exposures in the form of bonds secured by mortgages -
Short term exposures to banks, brokerage houses and corporates -
Exposures in the form of collective investment undertakings -
Other receivables
7.565
38.211
(*)
Average risk amounts are the arithmetical average of the risk amounts after conversion in July-December period.
(**)
Deutsche Bank
Annual Report 2013
77
At 31 December 2013
g. Profile of significant exposures in major regions
Conditional
Conditional and
and
unconditional unconditional Conditional Conditional
exposures to exposures to and
and
central
banks and unconditionalunconditional
governments or brokerage exposures to retail
Other
31 December 2013
central banks
houses corporates exposures
receivables
Total
1. Domestic
232.208
297.604
867.955
119.943
14.080
1.531.790
2. European Union (EU) countries
-
139.234
39.838
-
-
179.072
-
13.087
1.922
-
-
15.009
3. OECD countries (**)
4. Off-shore banking regions
-
-
155
-
-
155
5. USA, Canada
-
49.276
19.142
-
-
68.418
6. Other countries
-
6.348
5.383
-
-
11.731
7. Associates, subsidiaries and joint ventures -
-
-
-
-
8. Unallocated assets / liabilities (***) -
-
-
-
-
Total (*)
232.208
505.549
934.395
119.943
14.080
1.806.175
OECD countries other than EU countries, USA and Canada
(***)
Assets and liabilities that can not be allocated on a consistent basis
(*)
(**)
Conditional
Conditional and
and
and
central
Other
31 December 2012
central banks
receivables
Total
1. Domestic
162.059
51.134
382.776
91.153
7.565
694.687
2. European Union (EU) countries
-
91.266
62.651
-
-
153.917
3. OECD countries (**)
-
9.666
1.860
-
-
11.526
4. Off-shore banking regions
-
-
124
-
-
124
5. USA, Canada
-
31.077
38.821
-
-
69.898
6. Other countries
-
6.433
1.115
-
-
7.548
7. Associates, subsidiaries and joint ventures -
-
-
-
-
-
-
-
-
-
8. Unallocated assets / liabilities (***)
Total (*)
162.059
189.576
487.347
91.153
7.565
937.700
Deutsche Bank
Annual Report 2013
78
At 31 December 2013
h. Risk profile according to sectors and counterparties
Conditional
Conditional and
and
and
central
Other
31 December 2013
central banks
receivables
Agriculture
-
-
6.237
-
-
Farming and raising livestock
-
-
6.237
-
-
Forestry
-
-
-
-
-
Fishing
-
-
-
-
-
Manufacturing
-
-
478.556
37.662
-
Mining
-
-
160
-
-
Production
-
-
478.156
37.662
-
Electric, gas and water
-
-
240
-
-
Construction
-
-
10.150
-
-
Services
228.365
505.549
433.176
82.228
-
Wholesale and retail trade
-
-
273.826
81.948
-
Hotel, food and beverage services
-
-
-
-
-
Transportation and telecommunication
-
-
40.701
280
-
Financial institutions
228.365
505.549
118.649
-
-
Real estate and renting services
-
-
-
-
-
Self-employement services
-
-
-
-
-
Education services
-
-
-
-
-
Health and social services
-
-
-
-
-
Other
3.843
-
6.275
54
14.080
Total (*)
232.208
505.549
934.394
119.944
14.080
(*)
6.237
6.237
516.218
160
515.818
240
10.150
1.249.318
355.774
40.981
852.563
24.252
1.806.175
Conditional
Conditional and
and
and
central
Other
31 December 2012
central banks
receivables
Agriculture
-
-
7.101
-
-
-
-
7.101
-
-
Forestry
-
-
-
-
-
Fishing
-
-
-
-
-
Manufacturing
-
-
232.505
27.260
-
Mining
-
-
-
-
-
Production
-
-
229.236
27.260
-
-
-
3.269
-
-
Construction
-
-
40.370
-
-
Services
162.059
189.576
205.159
63.799
-
-
-
181.105
63.599
-
-
-
-
-
-
-
-
22.654
200
-
162.059
189.576
-
-
-
-
-
-
-
-
-
-
-
-
-
Education services
-
-
-
-
-
-
-
1.400
-
-
Other
-
-
2.212
94
7.565
Total (*)
162.059
189.576
487.347
91.153
7.565
(*)
Total
Total
7.101
7.101
259.765
256.496
3.269
40.370
620.593
244.704
22.854
351.635
1.400
9.871
937.700
79
Deutsche Bank
Annual Report 2013
At 31 December 2013
i.Distribution of maturity risk factors according to their outstanding maturities
Term to maturity
Current Period
1 month
1-3 months 3-6 months 6-12 months Over 1 year
Total
to central governments or central banks 198.262
-
-
-
-
198.262
501.758
-
-
-
-
501.758
to corporates
383.888
164.515
27.363
213.998
-
789.764
exposures 96.128
15.971
228
1.282
-
113.609
Other receivables
-
-
-
-
-
Total (*)
1.180.036
180.486
27.591
215.280
-
1.603.393
(*)
Term to maturity
Prior Period
1 month
1-3 months 3-6 months 6-12 months Over 1 year
Total
to central governments or central banks
119.216
-
-
-
-
119.216
186.036
-
-
-
-
186.036
to corporates
105.441
120.167
60.853
12
-
286.473
exposures 49.099
28.879
4.296
5.952
-
88.226
Other receivables
-
-
-
-
-
Total (*)
459.792
149.046
65.149
5.964
-
679.951
(*)
j. Information on risk classifications
According to the 7th article of the Communiqué on “Measurement and Assessment of Capital Adequacy of Banks”, in
the process of risk weighted assets calculation, risk weights are determined through ratings given by internatiol rating
companies.
The international risk ratings are used for the exposures to central governments and central banks, whereas for central
governments and central banks that are not rated by Fitch Ratings, the published country ratings as announced by the
Organisation for Economic Cooperation and Development (OECD) are used. If exist, the ratings of Standart&Poor’s (S&P),
Moody’s and Fitch Ratings are used together for the exposures of the foreign banks and brokerage houses. Where the
counterparties are domestic, the related exposures are included in the calculation of capital adequcy as unrated.
TL exposures of Central Government of Turkey and Central Bank of Turkey and all reserve requirement balances have 0%
risk weight.
he Fitch Ratings, Moody’s and Standart&Poor’s risk ratings as per the credit quality grades and the risk weights according
T
to exposure categories are presented below:
Ratings to match
Long-term Credit Rating
Short-Term Credit Rating
Credit Quality
Grades
Fitch
Moody’s
Standart & Poor’s
1
2
3
4
5
6
AAA and AA-
A+ and A-
BBB+ and BBB-
BB+ and BB-
B+ and B-
CCC+ and below
Aaa and Aa3
A1 and A3
Baa1 and Baa3
Ba1 and Ba3
B1 and B3
Caa1 and below
AAA and AAA+ and ABBB+ and BBBBB+ and BBB+ and BCCC+ and below
1
2
3
4
5
6
F1+ and F1
F2
F3
F3 and below
-
-
P-1
P-2
P-3
NP
-
-
A-1+ and A-1
A-2
A-3
A-3 below
-
Deutsche Bank
Annual Report 2013
80
At 31 December 2013
k. Risk amount based on risk weight
Risk Weight(*)
Deductions
Risk Weight
0% 10%
20%
50%
75%
100% 150%
From Equity
1. Exposures Before Credit Risk Mitigation 228.525
- 380.735
-
6621.196.253
-
27.263
2. Exposures After Credit Risk Mitigation
275.931
- 361.476 64.902
6621.103.203
-
27.263
(*)
The Bank does not have risk weighted balances on 200% nor 1.250%
l.Information according to sector and counterparty types
Loans
31 December 2013
Impaired
Past due Value adjustments
Provisions
Agricultural
-
-
62
-
-
62
Forestry
-
-
-
Fishing
-
-
-
Manufacturing
-
-
5.922
Mining
-
-
-
Production
-
-
5.921
-
-
1
Construction
-
-
41
Services
-
-
8.638
-
-
4.034
-
-
-
-
-
805
-
-
3.799
-
-
-
-
-
-
Education services
-
-
-
-
-
-
Other
-
-
170 Total -
-
14.833
Represents general provisions.
Loans
31 December 2012
Impaired
Past due Value adjustments
Provisions
Agricultural
-
-
71
-
-
71
Forestry
-
-
-
Fishing
-
-
-
Manufacturing
-
-
2.764
Mining
-
-
-
Production
-
-
2.751
-
-
13
Construction
-
-
161
Services
-
-
5.388
-
-
3.252
-
-
-
-
-
486
-
-
1.636
-
-
-
-
-
-
Education services
-
-
-
-
-
14
Other
-
-
24
Total -
-
8.408
-
(*)
(*)
Represents general provisions.
Deutsche Bank
Annual Report 2013
81
At 31 December 2013
m. Information about value adjustments and provisions
Impaired loans; are the credits that either overdue more than 90 days as of the reporting date or are treated as impaired
due to their creditworthiness. For such credits, “specific provisons” are allocated as per the Provisioning Regulation. The
Bank does not have impaired loans as at the reporting date.
Past due loans; are the credits that overdue upto 90 days but not impaired. For such credits, “general provisions” are
allocated as per the Provisioning Regulation. The Bank does not have past due loans as at the reporting date.
Opening Provisions for Provision Other
Closing
31 December 2013
balance
the period reversals adjustments
balance
1. Specific provisions
-
-
-
-
2. General provisions
8.408
6.425
-
-
14.833
Opening Provisions for Provision Other
Closing
31 December 2012
balance
the period reversals adjustments
balance
1. Specific provisions
-
-
-
-
2. General provisions
8.940
-
(532)
-
8.408
III. Explanations on Market Risk
The Bank calculates market risk by using “Standard Method” on a monthly basis.
Being exposed to market risk, the Bank’s Board of Directors has identified risk management strategies and policies and
has pursued the implementation of these strategies periodically. Considering the existing major risks, the Bank’s Board of
Directors determines and revises the risk limits, when necessary. The Board of Directors ensures that the risk management
group and the executive management are taking necessary actions in identifying, measuring, monitoring and managing the
various risks that the Bank exposes to.
The Bank performs daily stress testing related with the asset-liability management and Deutsche Bank AG performs the
‘VAR’ analysis.
The market risk exposed positions are transferred to the global markets with the most appropriate market prices for each
assets and liabilities. The global markets prepare the daily market yield curves which are used as reference prices for such
transfers.
The capital requirement for the general market risk and specific risks is calculated using the standard method in accordance
with the “Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks” and reported monthly.
a) Information related to market risk
(I) Capital Requirement against General Market Risk - Standard Method
(II) Capital Requirement against Specific Risks - Standard Method
Capital Requirement against Specific Risks of Securitisation Positions– Standard Method (III) Capital Requirement against Currency Position Risk - Standard Method (IV) Capital Requirement against Commodity Risks - Standard Method
(V) Capital Requirement against Clearing Risks - Standard Method
(V) Capital Requirement against Clearing Risks - Standard Method
(VII) Capital Requirement against Counterparty Credit Risks - Standard Method
(VIII) Capital Requirement against Market Risks of Banks applying Risk Measurement
(IX) Total Capital Requirement against Market Risk (I+II+III+IV+V+VI+VII)
(X) Value-At-Market Risk ((12.5*VIII) or (12.5*IX))
31 December 2013
7.303
5.923
793
14.019
175.238
82
Deutsche Bank
Annual Report 2013
At 31 December 2013
b) Average market risk calculated during the period at month ends
Interest rate risk
Share risk
Currency risk
Commodity risk
Settlement risk
Options risk
Counterparty Credit Risk (*)
Amount subject to total risk
Average
11.774
-
2.992
-
-
-
1.240
200.380
Current Period
Maximum
20.673
-
6.636
-
-
-
2.846
294.548
Minimum
6.085
-
863
-
-
-
439
143.510
Average
13.204
-
1.950
-
-
-
579
196.662
Prior Period
Maximum
20.781
-
5.681
-
-
-
1.008
343.375
Minimum
5.326
267
217
72.625
Counterparty credit risk includes January-December period for the current period and July-December period for the prior
period.
(*)
c) Q
uantitative information on counterparty risk
As per the 21st article of the “Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks”,
counterparty risk is calculated over the following trading book transactions:
a) Over-the-counter derivative financial instruments and credit derivatives,
b) Securities or commodity based securities included in the trading books or commodity borrowing or lending transactions
and repurchase and reverse repurchase agreements.
The Bank calculates counterparty credit risk by using “Valuation on Fair Value” method and risk amounts from this method
are used in calculations.
Total Risk
Amount Weighted Amount
Interest rate contracts (*)
800.011
586
Foreign exchange rate contracts (**)
22.948
9.327
Commodity contracts
-
Equity shares related contracts
-
Other -
Gross positive fair values
586
586
Netting benefits
-
Net current exposure amount
-
Collaterals received
-
Net derivative position
22.948
9.327
(*)
Consist of repurchase transactions.
Consist of currency swaps and forward agreements.
(**)
IV. Operational risk
The amount subject to operational risk is calculated once a year in accordance with the Regulation on “Measurement and
Assessment of the Capital Adequacy of Banks” published in the Official Gazette numbered 28337 on 28 June 2012. In the
calculation of the Bank’s operational risk, the “Basic Indicator Method” is used. In the Basic Indicator Method, the amount
subject to operational risk is calculated by multiplying 15% of the Bank’s average gross revenue over the previous three
years with 12,5. Amount subject to operational risk is TL 286.129 for the current period.
83
Deutsche Bank
Annual Report 2013
At 31 December 2013
Total / Number
of years for
which gross
income
31.12.2010
31.12.2011
31.12.2012
is positive
Rate (%)
Gross Income
123.564
117.652
216.591
152.602
15
Amount subject to operational
risk (Total*12,5)
Total
22.890
286.129
V. Explanations on currency risk
The Bank manages its foreign currency balance sheet by paying maximum attention to comply with the regulations of the
related authorities and by choosing the most appropriate methods to the Bank’s liquidity and profitability policies.
The position limit regarding the foreign currency risk is determined as parallel to the net foreign currency position standard
rate. As of 31 December 2013, the Bank’s net ‘on balance sheet’ foreign currency long position amounts to TL 42.614,
net ‘off-balance sheet’ foreign currency long position amounts to TL 30.336, while this net foreign currency long position
amounts to TL 72.950.
“Standard method’’, which is also used for the statutory reporting purposes, is used to measure the Bank’s foreign
currency risk .
The Bank’s effective exchange rates on the date of 31 December 2013 and 2012 and for the last five working days of the
period announced by the Bank in TL are as follows:
25 Dec. 2013
26 Dec. 2013
27 Dec. 2013
28 Dec. 2013
31 Dec. 2013
USD
2,0812
2,071
2,0957
2,1604
2,1343
CHF
2,3194
2,3111
2,3337
2,4307
2,3899
GBP
3,3978
3,3735
3,4286
3,5601
3,5114
EUR
2,8466
2,8353
2,8693
2,9844
2,9365
26 Dec. 2012
27 Dec. 2012
28 Dec. 2012
29 Dec. 2012
30 Dec. 2012
USD
1,7893
1,7877
1,7848
1,7829
1,7826
CHF
1,9549
1,9516
1,9484
1,9544
1,9430
GBP
2,8950
2,8796
2,8787
2,8823
2,8708
EUR
2,3651
2,3586
2,3566
2,3657
2,3517
The arithmetical average of the Bank’s main foreign currency purchase rates for the last 30 days before the balance sheet
date are listed below:
Monthly average purchase rate
USD
CHF
GBP
EUR
Current Period
2,0457
2,2713
3,3339
2,7926
Prior Period
1,7791
1,9271
2,8700
2,3332
a) Exposure to foreign currency risk
A 10 percent depreciation of the TL against the following currencies as at 31 December 2013 and 31 December 2012 would
have increased or decreased equity and profit or loss (excluding tax effects) by the amounts shown below. This analysis
assumes that all other variables, in particular interest rates, remain constant.
Monthly average purchase rate
USD
EUR
Other foreign currencies
Total, net
(*)
Equity includes profit/loss effect.
Current Period
(*)
Profit/loss
Equity 5.442
5.442
1.732
1.732
121
121
7.295
7.295
Prior Period
(*)
Profit/loss
Equity
(731)
(731)
2.005
2.005
61
61
1.335
1.335
Deutsche Bank
Annual Report 2013
84
At 31 December 2013
b) Information on currency risk of the Bank
Current Period
Euro
USD
Other FC
Total
Assets
Cash (Cash in Vault, Effectives, Cash in Transit, Cheques Purchased)
and Balances with Central Bank of Turkey
101
198.280
-
198.381
Banks 2.466
1.145
1.662
5.273
Financial Assets at Fair Value Through Profit or Loss
-
-
-
Interbank Money Market Placements
-
-
-
Available-for-sale Financial Assets
-
-
-
329.645
198.604
-
528.249
Loans and Receivables (*)
Investments in Associates, Subsidiaries and Joint Ventures
-
-
-
Held-to-maturity Financial Assets
-
-
-
Derivative Financial Assets Held for Risk Management
-
-
-
Tangible Assets
-
-
-
Intangible Assets
-
-
-
Other Assets (***)
44.287
8.531
24
52.842
Total Assets
376.499
406.560
1.686
784.745
Liabilities
Bank Deposits
304
-
-
304
Foreign Currency Deposits
40.431
9.606
64
50.101
Funds From Interbank Money Market
-
-
-
Funds Borrowed From Other Financial Institutions
587.437
84.673
-
672.110
Marketable Securities Issued
-
-
-
Miscellaneous Payables
3
62
-
65
Derivative Financial Liabilities Held for Risk Management
-
-
-
Other Liabilities (***)
18.470
669
412
19.551
Total Liabilities 646.645
95.010
476
742.131
Net On-Balance Sheet Position
(270.146)
311.550
1.210
42.614
Net Off-Balance Sheet Position (**)
324.568
(294.232)
-
30.336
Derivative Assets
551.703
566.349
2.447
1.120.499
Derivative Liabilities
227.135
860.581
2.447
1.090.163
Non-Cash Loans (****)
109.468
54.397
81
163.946
Prior Period
Total Asset
163.694
220.356
1.055
385.105
Total Liabilities
289.701
74.251
446
364.398
Net On-Balance Sheet Position
(126.007)
146.105
609
20.707
Net Off-Balance Sheet Position
146.055
(153.413)
-
(7.358)
Derivative Assets
216.856
278.191
-
495.047
Derivative Liabilities
70.801
431.604
-
502.405
Non-Cash Loans (****)
139.065
149.306
66
288.437
he foreign currency indexed loans amounting to TL 116.056 is included.
T
Indicates the net amount of derivative financial assets and liabilities. Spot foreign exchange buy and sell transactions
shown under “Asset purchase commitments” in the financial statements are included in the “Net off-balance position”.
Derivative financial assets and liabilities include accrual amounting to TL 18.937 and TL 18.145, respectively.
(***)
Accruals from spot foreign exchange buy and sell transactions are not included in “Other Assets” and “Other
Liabilities”. Income and expense accruals from spot foreign exchange buy and sell transactions are TL 1.950 income and
TL 2.496 expense accrual, respectively. Foreign currency prepaid expenses amounting to TL 1.088 is excluded from other
assets.
(****)
There is no impact on net off-balance sheet position.
(*)
(**)
Deutsche Bank
Annual Report 2013
85
At 31 December 2013
VI. Explanations on Interest Rate Risk
The interest rate sensitivity of assets, liabilities and off-balance sheet items are evaluated quarterly at Asset-Liability
Committee meetings.
The Bank’s interest rate risk is measured by using the standard method. The Bank provides information to its main
shareholder Deutsche Bank AG for their, Value at Risk (VAR), risk measurement methods and performs sensitivity analyses.
Standard method measurements are performed monthly by using the maturity distribution.
At the time of the computations on dailiy bases sensitivity analysis, interest rate risk of FC and TL trading securities and
available for sale financial assets with placements and forwards is measured.
1.Interest rate sensitivity of assets, liabilities and off balance sheet items
(Based on repricing dates)
Up to 1
1-3
3-12
1-5
5 Years Non-Interest
Current Period Ended
Month Months
Months
Years and Over
Bearing
Total
Assets
Cash and Balances with the Central
Bank of Turkey
-
-
-
-
-
228.523 228.523
Banks 307.252
-
-
-
-
5.766 313.018
Financial Assets at Fair Value through
Profit/Loss
305.602
21.399
307.737 93.105
69.239
18.937 816.019
Money Market Placements
-
-
-
-
-
-
Available-for-Sale Financial Assets
-
-
-
-
-
-
363.714 236.352
303.963
-
-
- 904.029
Held-to-Maturity Financial Assets
-
-
-
-
-
-
-
-
-
-
-
98.041
98.041
Other Assets (*)
Total Assets
976.568 257.751
611.700 93.105
69.239
351.267 2.359.630
Liabilities
Bank Deposits
-
-
-
-
-
414.533 414.533
Other Deposits 71.339
-
-
-
107.084 178.423
Money Market Funds
187.512
-
-
-
-
- 187.512
Miscellaneous Payable
-
-
-
-
-
2.167
2.167
Securities Issued -
-
-
-
-
-
Funds Borrowed
754.546 319.477
-
-
-
- 1.074.023
Other Liabilities (**)
-
-
-
-
-
502.972 502.972
Total Liabilities
1.013.397 319.477
-
-
-
1.026.756 2.359.630
On Balance Sheet Long Position
-
-
611.700 93.105
69.239
- 774.044
On Balance Sheet Short Position
(36.829) (61.726)
-
-
-
(675.489) (774.044)
Off-Balance Sheet Long Position
1.305.742 269.140
252.542
-
-
- 1.827.424
Off-Balance Sheet Short Position
1.306.601 268.306
252.313
-
-
- 1.827.220
Total Position
(37.688) (60.892)
611.929 93.105
69.239
(675.489)
204
Tangible assets amounting to TL 2.675, intangible assets amounting to TL 27.028, current tax asset amounting TL 1.673
and other assets amounting to TL 66.665 are presented in the other assets.
(**)
Equity amounting to TL 426.707, provisions amounting to TL 45.915, other liabilities amounting to TL 3.632, derivative
instruments held for trading amounting to TL 18.145 and tax liabilities amounting to TL 8.573 are presented in the other
liabilities.
(*)
Deutsche Bank
Annual Report 2013
86
At 31 December 2013
Up to 1
1-3
3-12
1-5
5 Years Non-Interest
Prior Period Ended
Month Months
Months Years and Over
Bearing
Total
Assets
Cash and Balances with the
Central Bank of Turkey
-
-
-
-
-
162.344 162.344
Banks 38.151
-
-
-
-
3.540
41.691
Financial Assets at Fair Value
through Profit/Loss
212.291 148.473
65.790 124.651
67.036
861 619.102
-
-
-
-
-
-
Investment Securities Available-for-Sale -
-
-
-
-
-
161.746 149.046
71.113
-
-
- 381.905
Investment Securities Held-to-Maturity -
-
-
-
-
-
-
-
-
-
-
91.924
91.924
Other Assets (*)
Total Assets
412.188 297.519
136.903 124.651
67.036
258.669 1.296.966
Liabilities
Bank Deposits
30.304
-
-
-
-
113.502
143.806
Other Deposits 65.043
27.150
-
-
-
194.741
286.934
Money Market Funds
59.753
-
-
-
-
-
59.753
-
-
-
-
-
2.252
2.252
Securities Issued -
-
-
-
-
-
Funds Borrowed
880 235.182
-
-
-
-
236.062
-
-
-
-
-
568.159
568.159
Total Liabilities
155.980 262.332
-
-
-
878.654 1.296.966
On Balance Sheet Long Position
256.208
35.187
136.903
124.651 67.036
-
619.985
On Balance Sheet Short Position
-
-
-
-
- (619.985)
(619.985)
Off-Balance Sheet Long Position
714.314
35.550
39.510
-
-
-
789.374
Off-Balance Sheet Short Position
(714.599) (35.549)
(39.494)
-
-
-
(789.642)
Total Position
255.923
35.188
136.919
124.651 67.036 (619.985)
(268)
Tangible assets amounting to TL 3.442, intangible assets amounting to TL 34.151 and other assets amounting to TL
54.331 are presented in the other assets.
(**)
Equity amounting to TL 514.881, provisions amounting to TL 38.802, other liabilities amounting to TL 525, trading
derivative instruments amounting to TL 1.065, payable from leasing transactions amounting to TL 12.886 are presented in
the other liabilities.
(*)
2.Average interest rates on monetary financial instruments
Current Period EUR %
USD %
JPY %
TL %
Assets
Cash and Balances with the Central Bank of Turkey
-
-
-
-
-
-
6,66
Financial Assets at Fair Value through Profit/Loss
-
-
-
8,70
-
-
-
Available-for-Sale Financial Assets (Net)
-
-
-
2,61
2,44
-
9,08
Held-to-Maturity Financial Assets (Net)
-
-
-
Liabilities
Bank Deposits
-
-
-
Other Deposits 0,10
0,10
-
5,68
Money Market Funds
-
-
-
5,06
-
-
-
Securities Issued -
-
-
Funds Borrowed 0,18
0,38
-
6,75
Deutsche Bank
Annual Report 2013
87
At 31 December 2013
Prior Period EUR %
USD %
JPY %
TL %
Assets
Cash and Balances with the Central Bank of Turkey
-
-
-
-
-
-
6,82
Financial Assets at Fair Value through Profit/Loss
-
-
-
9,24
-
-
-
Available-for-Sale Financial Assets (Net)
-
-
-
2,60
3,70
-
7,81
Held-to-Maturity Financial Assets (Net)
-
-
-
Liabilities
Bank Deposits
-
0,33
-
Other Deposits 0,10
0,28
-
4,63
Money Market Funds
-
-
-
5,15
-
-
-
Securities Issued -
-
-
Funds Borrowed 0,07
-
-
3. Interest rate risk on banking books
The interest rate risk of the banking books is measured and monitored within the scope of the Regulation about
Measurement and Assessment of Interest Rate Risk in the Banking Accounts by Standard Shock Method.
31 December 2013
Shock Applied Gains/ Gains/EquityType of Currency
(+/- x basis point)
(Losses)
(Losses)/Equity
TL
(+) 500bp
(1.024)
(0,240%)
TL
(-) 400bp
866
0,203%
EUR
(+) 200bp
288
(0,067%)
EUR
(-) 200bp
(16)
%0,003
USD
(+) 200bp
(710)
(0,166%)
USD
(-) 200bp
722
0,169%
Total (of positive shocks)
(1.750)
(0,473%)
Total (of negative shocks)
1.876
0,375%
31 December 2012
Shock Applied Gains/ Gains/EquityType of Currency
(+/- x basis point)
(Losses)
(Losses)/Equity
TL
(+) 500bp
(1.706)
(0,349%)
TL
(-) 400bp
1.449
0,296%
EUR
(+) 200bp
288
(0,059%)
EUR
(-) 200bp
(293)
0,060%
USD
(+) 200bp
(140)
(0,029%)
USD
(-) 200bp
142
0,029%
Total (of positive shocks)
(1.558)
(0,319%)
Total (of negative shocks)
1.298
0,266%
4. Position risk of equity securities on banking books
None.
VII. Explanations on liquidity risk
The Bank calculates liquidity adequacy ratio and reports to BRSA on a weekly basis in accordance with the “Measurement
and Assessment of Liquidity Adequacy of Banks” issued in the Official Gazette numbered 26333 and dated 1 November
2006. The liquidity adequacy of the Bank is over the limit values specified in the mentioned regulation.
Deutsche Bank
Annual Report 2013
88
At 31 December 2013
1.The resources of the current liquidity risk; whether the necessary precautions have been taken, whether the Board of
Directors sets limits on the funds available to meet the urgent liquidity requirements and to be able to pay borrowings
when they become due
Liquidity risk is managed by considering the main criteria such as (1) the expected cash flows at related time intervals, (2)
the possibility and capacity of borrowing from the market, (3) the credit quality of the assets on the balance sheet.
In addition to the compliance with the legal limitations regarding the liquidity, the Bank monitors from the cash flow
reports that there are matching borrowing opportunities with the cash out-flows within the same time interval.
2.The matching of the payments, assets and liabilities and the interest rates, and the possible impact of the current
mismatch on the profitability of the Bank
The Bank’s assets and liabilities carry positive interest earnings. Whether government debt securities which are classified in
trading securities are most liquid securities that are liquidated in changes in market conditions.
3.Internal and external resources that meets the short and long term liquidity needs of the Bank and unutilised significant
liquidity resources
The Bank monitors that the maturity matching of the assets and liabilities are kept. The Bank keeps sufficient liquid assets
to meet liquidity needs caused by the fluctuations in the market.
As per the BRSA Communiqué published on 1 November 2006 and effective from 1 January 2007, “Measurement and
Assessment of the Adequacy of Banks’ Liquidity”, the weekly and monthly liquidity ratios on a bank-only basis for foreign
currency assets/liabilities and total assets/liabilities should be minimum 80% and 100%, respectively. The liquidity ratios as
of 31 December 2013 and 31 December 2012 are as follows:
First Maturity Bracket (Weekly)
Second Maturity Bracket (Mothly)
Current Period
FC
FC + TL
FC
FC + TL
Average (%)
114,24
119,44
108,22
114,81
Maximum (%)
150,91
152,41
144,92
154,53
Minimum (%)
84,25
101,21
89,03
100,90
First Maturity Bracket (Weekly)
Second Maturity Bracket (Mothly)
Prior Period
FC
FC + TL
FC
FC + TL
Average (%)
100,24
115,04
97,72
113,92
Maximum (%)
143,43
150,72
125,02
146,71
Minimum (%)
80,41
100,27
80,70
100,87
4. The assessment of the amounts and resources of the Bank’s cash flows
As explained above, the Bank has sufficient cash and cash inflows in order to be able to timely meet the cash outflows.
Maturity analysis of residual values of contractual financial liabilities:
Gross
Carrying Nominal Up to 1
1-3
3-12
1-5 5 Years
Current period
Value Outflow Demand
Month Months Months
Years and Over
Bank Deposits
414.533 414.533 414.533
-
-
-
-
Other Deposits
178.423 177.621 107.084
70.537
-
-
-
Funds Borrowed
1.074.023 1.075.856
- 756.257 319.599
-
-
Interbank Money Market Funds 187.512 187.512
- 187.512
-
-
-
2.167
2.167
2.167
-
-
-
-
Finance Lease Payables
-
-
-
-
-
-
-
Total
1.856.658 1.857.689 523.784 1.014.306 319.599
-
-
Deutsche Bank
Annual Report 2013
89
At 31 December 2013
Gross
Carrying Nominal
Up to 1
1-3
3-12
1-5 5 Years
Prior period
Value Outflow Demand
Month Months Months
Years and Over
Bank Deposits
143.806 143.806 113.502
30.304
-
-
-
Other Deposits
286.934 286.969 194.741
65.064
27.164
-
-
Funds Borrowed
236.062 238.678
-
880 237.798
-
-
Interbank Money Market Funds
59.753
59.753
-
59.753
-
-
-
2.252
2.252
2.252
-
-
-
-
Finance Lease Payables
-
-
-
-
-
-
-
Total
728.807 731.458 310.495 156.001 264.962
-
-
The above table shows the undiscounted estimated cash outflows of the financial liabilities in accordance with their
contracts.
Maturity analysis of assets and liabilities according to remaining maturities
Up to 1
1-3
3-12
1-5
5 Years UnalloCurrent period
Demand
Month Months Months
Years and Over
cated
Total
Assets
Cash and Balances with the Central
Bank of Turkey 30.260 198.263
-
-
-
-
- 228.523
Banks
5.766 307.252
-
-
-
-
- 313.018
Financial Assets At Fair Value
Through Profit or Loss
- 714.850
42.855
58.314
-
-
- 816.019
Interbank Money Market Placements
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 363.714 236.352 303.963
-
-
- 904.029
-
-
-
-
-
-
-
Other Assets (*)
-
5.273
959
43.049
-
-
48.760
98.041
Total Assets
36.026 1.589.352 280.166 405.326
48.760 2.359.630
Liabilities
Bank Deposits
414.533
-
-
-
-
-
- 414.533
Other Deposits
107.084
71.339
-
-
-
- 178.423
Funds Borrowed
- 754.546 319.477
-
-
-
- 1.074.023
Interbank Money Market Funds
- 187.512
-
-
-
-
- 187.512
Securities Issued
-
-
-
-
-
-
-
2.167
-
-
-
-
-
-
2.167
37.333
13.926
5.882
19.124
-
- 426.707 502.972
Total Liabilities
561.117 1.027.323 325.359
19.124
-
- 426.707 2.359.630
Liquidity (Gap) / Surplus
(525.091) 562.029 (45.193) 386.202
-
- (377.947)
Prior Period
Total Assets
46.668 321.047 229.919 175.885 365.968
96.472
61.007 1.296.966
Total Liabilities 338.094 166.596 262.416
14.979
-
- 514.881 1.296.966
Liquidity (Gap) / Surplus
(291.426) 154.451 (32.497) 160.906 365.968
96.472 (453.874)
Tangible assets amounting to TL 2.675, intangible assets amounting to TL 27.028, current tax asset amounting TL 1.673
and other assets amounting to TL 66.665 are presented in the other assets
(**)
Equity amounting to TL 426.707, provisions amounting to TL 45.915, other liabilities amounting to TL 3.632, derivative
instruments held for trading amounting to TL 18.145 and tax liabilities amounting to TL 8.573 are presented in the other
liabilities.
(*)
Deutsche Bank
Annual Report 2013
90
At 31 December 2013
Contractual maturity analysis of the Bank’s derivative instruments Up to 1
1-3
3-12
1-5
5 years
31 December 2013
Month
Months
Months
Years
and Over
Total
Derivative instruments held for trading
Foreign exchange derivatives:
934.528
537.446
504.855
-
-
1.976.829
- Inflow
467.092
269.140
252.542
-
-
988.774
- Outflow (-)
467.436
268.306
252.513
-
-
988.055
Interest rate derivatives:
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
Derivative instruments held for risk management
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
Total cash inflow
467.092
269.140
252.542
-
-
988.774
Total cash outflow
467.436
268.306
252.313
-
-
988.055
Up to 1
1-3
3-12
1-5
5 Years
31 December 2012
Month
Months
Months
Years
and Over
Total
Derivative instruments held for trading 952.445
71.099
79.005
-
-
1.102.549
476.131
35.550
39.510
-
-
551.191
- Inflow
476.314
35.549
39.495
-
-
551.358
- Outflow (-)
-
-
-
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
Derivative instruments held for risk management
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
-
-
-
-
- Inflow
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
Total cash inflow
476.131
35.550
39.510
-
-
551.191
Total cash outflow
476.314
35.549
39.494
-
-
551.358
5. Explanations on securitization positions
None.
6. Credit risk mitigation techniques
The Bank applies credit risk mitigation according to the simple financial collateral method in compliance with the article 33
of the “Regulation on Credit Risk Mitigation Techniques”.
In the credit risk mitigation, cash and cash equivalent items and high-credit-quality debt instruments are used.
91
Deutsche Bank
Annual Report 2013
At 31 December 2013
Guarantees
31 December 2013
Financial Other/Physical and Credit
Risk Classifications:
Amount (*)
Collaterals
Collaterals Derivatives
Conditional and unconditional exposures to
central governments or central banks
regional governments or local authorities
administrative bodies and non-commercial undertakings
multilateral development banks
international organisations
banks and brokerage houses
corporates Conditional and unconditional retail exposures Conditional and unconditional exposures secured
by real estate property
Past due items Items in regulatory high-risk categories Exposures in the form of bonds secured by mortgages Securitisation positions Short term exposures to banks, brokerage houses and corporates Exposures in the form of collective investment undertakings Other receivables
(*)
232.208
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
505.549
47.407
-
-
934.395
119.943
-
-
-
-
64.902
-
-
-
-
-
-
-
-
14.080
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Guarantees
31 December 2012
Financial Other/Physical and Credit
Risk Classifications:
Amount (*)
Collaterals
Collaterals Derivatives
central governments or central banks
regional governments or local authorities
administrative bodies and non-commercial undertakings
multilateral development banks
international organisations
banks and brokerage houses
corporates Conditional and unconditional retail exposures
Conditional and unconditional exposures secured
by real estate property
Past due items Items in regulatory high-risk categories Exposures in the form of bonds secured by mortgages Securitisation positions Short term exposures to banks, brokerage houses and corporates Exposures in the form of collective investment undertakings Other receivables
(*)
162.059
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
189.576
43.444
-
-
487.347
91.153
-
-
-
-
85.186
-
-
-
-
-
-
-
-
7.565
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Includes risk amounts before the effect of credit risk mitigation but after the credit conversions
Deutsche Bank
Annual Report 2013
92
At 31 December 2013
7. Risk management objective and policies
The aim of the risk management system is to provide the definition, measurement, surveillance and control of the exposed
risks; by means of policies, implementation methods and limits; determined in order that the risk-return structure contained
in the future cash flows of the Bank, and the quality of the related activities and their levels are followed, controlled, and
changed, if needed.
The required policies, methods and limits for the measurement, analysis, reporting and controlling of the defined risks are
determined by the Board of Managers.
In the determination of risk management policies and implementation methods; strategies, policies and implementation
methods regarding the activities of the Bank; the volume, quality and the complexity of the activities; risk strategy and
acceptable level of risk; risk monitoring and managing capacity; past experience and performance; the level of expertise of
the managers of the related units in topics related to their area; and the obligations indicated in the law and other related
legislation; are taken into account.
The adaptation of the risk management policies and procedures to the changing conditions is essential. The Board of
Managers or the related Internal Systems Specialist evaluates the adequacy of these regularly and makes the required
alterations.
Risk management policies and procedures include the utilization of risk reduction techniques like hedging, insurance or
credit derivatives.
The Bank determines written limits for the quantifiable risk like the credit risk, market risk, interest rate risk and liquidity
risk originating from its activities; and these limits are approved by the Board. The risk limits are determined together with
top management executives including the related internal systems specialist, the risk management unit executive and the
general manager of the Bank. These limits become valid with the approval of the Board.
The risk limits are determined according to the risk level the Bank can take, and the volume and complexity of its
products and services. The risk limits are reviewed periodically in a way to reflect the currency of the developments in the
implementation and adapted according to the changes in the market conditions and bank strategy. It is essential that the
limits are determined risk-based. The risk limits to be determined, cannot go out of the limits determined in the regulations
related to these topics.
VIII. E
xplanations regarding the presentation of financial assets and liabilities at their fair values
It has been assumed that fair value of financial assets and liabilities which have not been presented by fair value
approximates their carrying value due to short-term maturity structure.
TFRS 7 - Financial instruments: Disclosures requires the classification of fair value measurements into a fair value hierarchy
by reference to the observability and significance of the inputs used in measuring fair value of financial instruments
measured at fair value to be closed. This classification basically relies on whether the relevant inputs are observable or not.
This distinction brings about a fair value measurement classification generally as follows:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets of liabilities;
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are obversable for the
asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3: Fair value measurements using inputs for the assets or liability that are not based on observable market data
(unobservable inputs).
Deutsche Bank
Annual Report 2013
93
At 31 December 2013
This classification of fair value measurements of financial assets and liabilities measured at fair value is as follows:
31 December 2013
Level 1
Level 2
Level 3
Total
797.082
18.937
-
816.019
Government Debt Securities
797.082
-
-
797.082
Share Certificates
-
-
-
Derivative Financial Assets Held for Trading
-
18.937
-
18.937
Other Securities
-
-
-
Available for Sale Financial Assets
-
-
-
-
-
-
Other Securities
-
-
-
-
-
-
Total Assets
797.082
18.937
-
816.019
Derivative Financial Liabilities Held for Trading
-
18.145
-
18.145
-
-
-
Total Liabilities
-
18.145
-
18.145
31 December 2012
Level 1
Level 2
Level 3
Total
618.241
861
-
619.102
618.241
-
-
618.241
Share Certificates
-
-
-
Derivative Financial Assets Held for Trading
-
861
-
861
Other Securities
-
-
-
Available for Sale Financial Assets
-
-
-
-
-
-
Other Securities
-
-
-
-
-
-
Total Assets
618.241
861
-
619.102
Derivative Financial Liabilities Held for Trading
-
1.065
-
1.065
-
-
-
Total Assets
-
1.065
-
1.065
IX. Explanation regarding the activities carried out on behalf and account of other parties
1. Purchasing, selling, custody, management and advisory services which are carried out by the Bank on behalf of
customers
The Bank provides intermediary services for the purchase and sale of financial assets on behalf of the customers and
custody services.
2.Whether operations with financial institutions and financial services in the context of transaction agreements held in trust
effect the financial situation of the Bank significantly
The Bank is not involved in trust activities.
94
Deutsche Bank
Annual Report 2013
At 31 December 2013
X. Explanations on operating segments
Financial information on operational segments as of 31 December 2013 and 31 December 2012 are as follows:
Current period
Corporate
Banking
Global
Markets
Other
Unallocated
Total
Operating Profit
53.933
(19.183)
69.551
-
104.301
Net Operating Profit / (Loss)
20.744
(25.639)
9.027
-
4.132
Profit /(Loss) Before Tax
20.744
(25.639)
9.027
4.132
Tax Provision
-
-
-
(2.045)
(2.045)
Net Period Profit /(Loss)
20.744
(25.639)
9.027
(2.045)
2.087
Segment Assets
963.303
1.396.327
-
-
2.359.630
Segment Liabilities
582.161
1.350.762
-
-
1.932.923
Equity
-
-
-
426.707
426.707
Prior period
Corporate
Banking
Global
Markets
Other
Unallocated
Total
Operating Profit
50.669
137.363
28.915
-
216.947
Net Operating Profit / (Loss)
19.550
82.167
28.915
-
130.632
Profit /(Loss) Before Tax
19.550
82.167
28.915
-
130.632
Tax Provision
-
-
-
(26.525)
(26.525)
Net Period Profit /(Loss)
19.550
82.167
28.915
(26.525)
104.107
Segment Assets
445.419
851.547
-
-
1.296.966
Segment Liabilities
377.246
404.839
-
-
782.085
Equity
-
-
-
514.881
514.881
Deutsche Bank
Annual Report 2013
95
At 31 December 2013
SECTION FIVE
EXPLANATIONS AND NOTES TO UNCONSOLIDATED FINANCIAL STATEMENTS
I. Explanations and Notes Related to Assets
1. Information related to cash and balances with the Central Bank of Turkey
1.aInformation on cash and balances with the Central Bank of Turkey
Current Period
Prior Period
TL
FC
TL
FC
Cash in TL/ Foreign currency
41
118
90
195
30.101
198.263
42.843
119.216
Other
-
-
-
Total
30.142
198.381
42.933
119.411
1.b Information on balances with the Central Bank of Turkey
Current Period
Prior Period
TL
FC
TL
FC
Unrestricted Demand Deposits
30.101
-
42.843
Unrestricted Time Deposits
-
77.259
-
55.662
Restricted Time Deposits
-
121.004
-
63.554
Total
30.101
198.263
42.843
119.216
1.c Information on reserve deposits
The Banks, established or operating by means of opening a branch in Turkey, subject to the Communiqué numbered
2005/1 “Reserve Deposits” of the Central Bank of Turkey. The amount result from total domestic liabilities by deduction
of the accounts indicated in the Communiqué and the deposit accepted from Turkey on behalf of the branches abroad
forms liabilities subjected to required reserves. The banks operating in Turkey keep reserve deposits for Turkish currency
liabilities in TL, USD, EUR and/or standard gold at the rates between 5% and 11.5% according to their maturities (31
December 2012: between 5% and 11% according to their maturities), foreign currency liabilities in USD, EUR and/or
standard gold at the rates between 6% and 12,5% according to their maturities (31 December 2012: between 6% and 11.5
% according to their maturities), respectively as per the Communiqué no.2005/1 “Reserve Deposits” of the Central Bank of
Turkey.
Reserve deposits required by the Central Bank of Turkey are not interest earning.
2.Information on financial assets at fair value through profit or loss
2.a Financial assets at fair value through profit or loss
2.a.1Financial assets at fair value through profit/loss subject to repurchase agreements and provided as collateral/blocked
Current Period
Prior Period
TL
FC
TL
FC
Share Certificates
-
-
-
Government Securities, Treasury Bills, and
Other Securities
141.940
-
212.382
Others
-
-
-
Total
141.940
-
212.382
-
96
Deutsche Bank
Annual Report 2013
At 31 December 2013
2.a.2Financial assets at fair value through profit/loss subject to repurchase agreements
Current Period
Prior Period
TL
FC
TL
FC
Government Bonds
-
-
62.229
Treasury Bills
-
-
-
Other Securities
-
-
-
Bond Issued or Guaranteed By Banks
-
-
-
Asset Backed Securities
-
-
-
Others
-
-
-
Total
-
-
62.229
2.bPositive differences on derivative financial assets held for trading
Current Period
Prior Period
TL
FC
TL
FC
Forward Transactions
-
9.364
-
561
Swap Transactions
-
9.573
-
300
Futures
-
-
-
Options
-
-
-
Other
-
-
-
Total
-
18.937
-
861
3. 3. Information on banks
3.a. Information on banks
Current Period
Prior Period
TL
FC
TL
FC
Banks
Domestic
278.245
498
23.426
102
Foreign
29.500
4.775
15.148
3.015
Foreign headoffices and branches
-
-
-
Total
307.745
5.273
38.574
3.117
3.b Information on foreign banks account
EU Countries
USA, Canada
OECD Countries (*)
Off-shore Banking Regions
Other
Total
(*)
Unrestricted amount
Current Period
Prior Period
32.814
1.107
354
-
-
34.275
OECD countries other than EU countries, USA and Canada.
4. Information on financial assets available for sale
16.949
981
233
-
-
18.163
Restricted amount
Current Period
Prior Period
-
-
-
-
-
-
-
Deutsche Bank
Annual Report 2013
97
At 31 December 2013
5. Explanations on loans and receivables
5.aInformation on all types of loan or advance balances given to shareholders and employees of the Bank
Current Period
Prior Period
Cash
Non-cash
Cash
Non-cash
Direct Lending to Shareholders
-
28.413
-
181.953
Corporate Shareholders -
28.413
-
181.953
Individual Shareholders
-
-
-
Indirect Lending to Shareholders 76.968
-
54.934
Loans to Employees
58
-
94
Total
77.026
28.413
55.028
181.953
5.b Information on the first and second group loans and receivables including loans that have been restructured or
rescheduled and other receivables
Standard Loans Loans and Receivables
and Receivables
Under Close Monitoring
Loans and Restructured or Loans and Restructured or Receivables
Rescheduled Receivables
Rescheduled
Extension of Extension of
the payment the payment Cash Loans
plan
Other
plan Other
Non-Specialized Loans
658.176
245.853
-
-
-
Commercial loans
416.818
73.850
-
-
-
Export Loans
223.694
172.003
-
-
-
Import Loans
-
-
-
-
-
Loans Given to Financial Sector
657
-
-
-
-
Consumer Loans 58
-
-
-
-
Credit Cards
-
-
-
-
-
Other
16.949
-
-
-
-
Specialized Lending
-
-
-
-
-
Other Receivables
-
-
-
-
-
Total 658.176
245.853
-
-
-
-
Information on loans whose terms are extended as of 31 December 2013:
Current Period
Number of extensions
and Receivables
1 or 2 Times 116.284
3, 4 or 5 Times
33.346
Over 5 Times
96.223
Total
245.853
Current Period
Extension Periods
and Receivables
0 - 6 Months
133.123
6 Months - 12 Months
112.730
1 - 2 Years
-
2 - 5 Years
-
5 Years and Over
-
Total
245.853
-
98
Deutsche Bank
Annual Report 2013
At 31 December 2013
5.c Loans according to their maturity structure
Current Period
Cash Loans
Short-term Loans and Receivables
Non-specialised Loans
Specialised Loans
Other Receivables
Medium and Long-Term Loans and Receivables
Non-specialised Loans Specialised Loans
Other Receivables
Total
Standard Loans and Loans and Receivables Under Close
Receivables
Monitoring
Loans and Restructured or
Receivables
Rescheduled
Receivables
Rescheduled
658.176
245.853
-
658.176
245.853
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
658.176
245.853
-
-
Prior Period
Cash Loans
Short-term Loans and Receivables
Non-specialised Loans
Specialised Loans
Other Receivables
Medium and Long-Term Loans and Receivables
Non-specialised Loans Specialised Loans
Other Receivables
Total
Standard Loans and Receivables
Receivables
Rescheduled
214.780
167.125
214.780
167.125
-
-
-
-
-
-
-
-
-
-
-
-
214.780
167.125
Receivables
Rescheduled
-
-
-
-
-
-
-
-
-
-
5.d Information on consumer loans, individual credit cards, personnel loans and personnel credit cards
The Bank has no consumer loans, consumer credit cards and personnel credit cards as of
31 December 2013 (31 December 2012: None). The Bank has short term personnel loan amounting to TL 58 as of 31
December 2013 (31 December 2012: TL 94).
5.e Information on installment based commercial loans and corporate credit cards
The Bank’s overdraft account amount is TL 16.949 as of 31 December 2013. ( 31 December 2012: None )
99
Deutsche Bank
Annual Report 2013
At 31 December 2013
5.f Information on allocation of loan customers
Public Sector
Private Sector
Total
Current Period -
904.029
904.029
Prior Period 381.905
381.905
5.g Distribution of domestic and foreign loans
Current Period Prior Period
Domestic Loans
903.372
360.364
Foreign Loans
657
21.541
Total
904.029
381.905
5.h Loans to associates and subsidiaries
5.i Specific provisions for loans
5.j Information on non-performing loans (Net)
5.j.1 Information on non-performing loans and receivables restructured or rescheduled:
None (31.12.2012: None).
5.j.2 Information on the movement of total non-performing loans:
5.j.3 Information on foreign currency non-performing loans and receivables
5.kMain principles of liquidating for uncollectible loans and receivables
The Bank has no uncollectible loans and receivables as of 31 December 2013 (31 December 2012: None).
6. Information on held-to-maturity financial assets
7. Information on investments in associates
8. Information on investments in subsidiaries
9. Information on investments in joint ventures
10. Information on finance lease receivables
11. Information on derivative financial assets held for risk management
Deutsche Bank
Annual Report 2013
100
At 31 December 2013
12. Information on property and equipment
Leased
Other
TangibleTangible
Current Period
Real Estates
Assets
Assets
31 December 2012
Cost
-
2.919
14.393
Accumulated Depreciation (-)
-
(2.875)
(10.995)
Net carrying value -
44
3.398
-
31 December 2013
Net Carrying Value at the Beginning of the Period
-
44
3.398
Additions -
-
390
Disposals (-) (net)
-
-
-
Depreciation (-)
-
(7)
(1.150)
Cost at the End of the Period -
2.919
14.783
Accumulated Depreciation at the End of the Period (-)
-
(2.882)
(12.145)
Closing Net Carrying Value at the End of the Period -
37
2.638
Leased
Other
TangibleTangible
Prior Period
Real Estates
Assets
Assets
Total
17.312
(13.870)
3.442
3.442
390
(1.157)
17.702
(15.027)
2.675
Total
31 December 2011
Cost
-
2.919
12.046
14.965
Accumulated Depreciation (-)
-
(2.874)
(9.559)
(12.433)
Net carrying value -
45
2.487
2.532
31 December 2012
Net Carrying Value at the Beginning of the Period
-
45
2.487
2.532
Additions -
-
2.347
2.347
Disposals (-) (net)
-
-
-
Depreciation (-)
-
(1)
(1.436)
(1.437)
Cost at the End of the Period -
2.919
14.393
17.312
Accumulated Depreciation at the End of the Period (-)
-
(2.875)
(10.995)
(13.870)
Closing Net Book Value at the End of the Period -
44
3.398
3.442
As of 31 December 2013 and 31 December 2012, there is not impairment losses or reversal of impairment losses on
tangible assets.
As of 31 December 2013 and 31 December 2012, there is no pledge on tangible assets.
13. Additionally necessary information on each intangible asset type:
The Bank has intangible assets amounting to TL 27.028 as of 31 December 2013 (31 December 2012: TL 34.151). The Bank
acquired the custody operations (customer list) of a local Bank in Turkey on 11 May 2007 and the transaction was settled on
2 July 2007. Purchase amount was amounting to TL 150.967, a provision of TL 59.823 has been recorded after revaluation in
April 2010 because of changes in expected cash flows. The Bank performs impairment tests annually for this to intangible
asset and there is no identified impairment as of 31 December 2013.
Deutsche Bank
Annual Report 2013
101
At 31 December 2013
13.a Carrying value and accumulated amortization balances at current and prior period
Current Period
Prior Period
AccumulatedAccumulated
Amortisation Impairment AmortisationAmortisation Impairment Amortisation
Intangible Assets
162.452
61.950
73.474
160.912
61.950
64.811
13.b Information on movements between the beginning and end of the period
Current Period
Prior Period
Beginning of the Period
34.151
39.429
Additions due to Mergers, Transfers and Acquisitions
1.540
2.633
Disposals (-)
-
Amortisation (-)
(8.663)
(7.911)
End of the Period
27.028
34.151
14. Information on investment property
15. Information on tax assets
The Bank has TL 1.673 current tax asset as of 31 December 2013.( 31 December 2012: None ) Detailed information related to
net deferred tax assets/liabilities is given in Section Five Note 8.b.
There is no deductible temporary differences that are not included in calculation of deferred tax asset and not reflected to
financial statements in prior periods.
16. Information on assets held for sale and discontinued operations
17. Information on other assets
17.a Information on prepaid expenses, tax and similar transactions
Income accruals (*)
47.499
30.561
Guarantees given
14.508
20.337
Prepaid expenses
1.256
1.017
Other
3.4022.416
Total
66.665
54.331
(*)
TL 44.262 of income accruals comprise service income accruals (31 December 2012: TL 28.711).
17.b Breakdown of other assets which constitute at least 20% of grand total
Presented in the table above.
102
Deutsche Bank
Annual Report 2013
At 31 December 2013
II. Explanations and Notes Related to Liabilities
1. Information on maturity structure of deposits
With
6
7 day
Up to 1
1-3
3-6 months -
1 year
Current Period
Demand notification
month months months
1 year and over
Saving Deposits
-
26.114
Residents in Turkey
19.619
Residents Abroad
6.495
Public Sector Deposits
-
Commercial Deposits
63.201
Other Institutions Deposits
17.769
Precious Metal Deposits
-
Bank Deposits
414.533
The Central Bank of Turkey
-
Domestic Banks
Foreign Banks
414.533
Special Financial
Institutions
-
Other
-
Total
521.617
Total
-
-
-
-
23.987
-
23.987
-
-
-
-
-
-
-
40.642
-
-
6.710
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
414.533
-
-
-
-
-
-
-
-
-
-
-
-
592.956
-
-
-
-
71.339
50.101
43.606
6.495
103.843
24.479
414.533
-
With
6
7 day
Up to 1
1-3
3-6 months -
1 year
Prior Period
Demand notification
month months months
1 year and over
Total
Saving Deposits
-
-
-
-
-
-
-
30.622
-
20.893
27.150
-
-
-
78.665
Residents in Turkey
29.391
-
20.893
-
-
-
-
50.284
Residents Abroad
1.231
-
-
27.150
-
-
-
28.381
-
-
-
-
-
-
-
Commercial Deposits
143.611
-
44.067
-
-
-
- 187.678
Other Institutions Deposits
20.508
-
83
-
-
-
-
20.591
-
-
-
-
-
-
-
Bank Deposits
113.502
-
30.304
-
-
-
- 143.806
The Central Bank of Turkey
-
-
-
-
-
-
-
Domestic Banks
121
-
30.304
-
-
-
-
30.425
Foreign Banks
113.381
-
-
-
-
-
- 113.381
Special Financial
Institutions
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
Total
308.243
-
95.347
27.150
-
-
- 430.740
Saving deposits covered by deposit insurance and total amount of deposits exceeding insurance coverage limit
Saving deposits at domestic branches of foreign banks in Turkey under the coverage of foreign insurance
Saving deposits out of the insurance coverage limits of Saving Deposit Insurance Fund
2.Information on derivative financial liabilities held for trading
Negative differences on derivative financial liabilities held for trading
Forward Transactions
Swap Transactions
Futures Transactions
Options
Other
Total
Current Period
TL
FC
-
9.109
-
9.036
-
-
-
-
-
-
-
18.145
TL
-
-
-
-
-
-
Prior Period
FC
208
857
1.065
Deutsche Bank
Annual Report 2013
103
At 31 December 2013
3. Information on funds borrowed
3.a Information on banks and other financial institutions
Current Period
Prior Period
TL
FC
TL
FC
-
-
-
Domestic Banks and Institutions
1.013
-
880
Foreign Banks, Institutions and Funds
400.900
672.110
-
235.182
Total
401.913
401.913
880
235.182
3.b Information on maturity structure of funds borrowed
Current Period
Prior Period
TL
FC
TL
FC
Short-Term
401.913
646.498
880
235.182
Medium and Long-Term
-
25.612
-
Total
401.913
672.110
880
235.182
3.c Additional information on the major concentration of the Bank’s liabilities
The Bank funds its assets within the normal course of its banking business with bank deposits, funds borrowed and
interbank money markets.
4.At least 20% of account of other liabilities on the balance sheet, exceeding 10% of the total liabilities excluding the off
balance sheet items
Account of other liabilities on the balance sheet does not exceeds 10% of total liabilities excluding the off-balance sheet
items.
5. Information on financial lease payables (Net)
5.1General information on the criteria used for the lease instalment arrangements, renewal or buy options and restrictions
in the agreements
The maturity of the finance lease agreements are mostly 4 years. In lease agreements the interest rate and the Bank’s cash
flow are important criteria. In lease agreements there are no articles that bear significant liabilities to the Bank.
5.2Changes in the conditions of the agreements and new requirements for the Bank
There are no changes in the conditions of the finance lease agreements of the Bank.
5.3 Information on financial lease payables
5.4 Operational lease agreements
The Bank’s operational leasing activities comprise of vehicles, photocopy machines and office buildings.
5.5 Information on sales and lease-back agreements
In the current period there are no sales and lease-back agreements (31 December 2012: None).
6. Information on derivative financial liabilities held for risk management
Deutsche Bank
Annual Report 2013
104
At 31 December 2013
7. Information on provisions and subordinated loans
7.a Information on general provisions
Current Perod
Prior Period
General Provisions
Loans and Receivables in Group I
12.592
6.666
- Additional Provision for Loans and Receivables
with Extended Maturities
2.754
2.197
Loans and Receivables in Group II
-
- Additional Provision for Loans and Receivables
with Extended Maturities
-
Non-cash Loans
375
1.118
Other
1.866624
Total
14.8338.408
7.b Information on provisions for foreign exchange differences on foreign currency indexed loans
As of 31 December 2013, provision for the foreign exchange differences on foreign currency indexed loans is TL 69 (31
December 2012: TL 415) and this amount is netted with loans on the asset side of the financial statements.
7.c Provisions for non-cash loans that are not indemnified or converted into cash
The Bank has specific provisions provided for unindemnified non cash loans amounting to TL 138 as of the reporting date
(31 December 2012: TL 120). It is recognized under “Other Revenues”.
7.d Reserve for employment benefits
Information on reserve for employment termination benefits
Current Perod
Prior Period
Personnel Bonus Provision 15.703
12.884
Provision for Employee Severance Indemnities
874
774
Vacation Pay Liability
1.617
1.593
Total
18.194
15.251
In accordance with the existing Turkish Labor Law, the Bank is required to make lump-sum termination indemnities to each
employee whos has completed one year of service with the Bank and whose employment is terminated due to retirement
or for reasons other than resignation or misconduct and this amount is limited by the termination imdentiy upper limit.
Employee severance indemnities are not subject to legal funding requirements.
The provision has been calculated by estimating the present value of the future probable obligation of the Bank arising
from the retirement of employees. TAS 19 requires actuarial valuation methods to be developed to estimate the
enterprise’s obligation under defined benefit plans. Accordingly, assumptions on discount rate, expected rate of salary
increase and employee turnover rate is used in the calculation of the total liability. Each assumption is reviewed on an
annual basis. The major acturial assumptions used in the calculation of the total liability are as follows:
Current Perod
Prior Period
Net discount rate
2,74%
2,74%
Rate of expected inflation increase
5,30%
5,30%
Turnover rate to estimate the probability of retirement
93,80%
95,73%
Movement of provision for severance indemnities during the year is presented below:
Current Perod
Prior Period
Balance at the beginning of the period
774
560
Recognised during the period
154
475
Paid during the period (-)
(13)
(72)
Cancelled during period (-)
(41)
(189)
Total
874774
Deutsche Bank
Annual Report 2013
105
At 31 December 2013
7.e Information on other provisions
7.e.1 General reserve for possible losses
7.e.2 Information on other provisions exceeding 10% of total provisions
As of 31 December 2013, other provisions amounting to TL 12.888 (31 December 2012: TL 15.143) includes provisions
amounting to TL 12.326 (31 December 2012: TL 14.562) that will be paid in accordance with the service agreement signed
with Deutsche Bank Group.
8. Information on tax liability
8.a.1 Information on tax liability
As of 31 December 2013 tax asset amounted to TL 1.673 recognized after deducting prepaid tax amounted TL 5.523 from
provision for current tax amounted to TL 3.850. (31 December 2012: TL 3.535 current tax payable).
8.a.2 Information on taxes payable
Current period
Prior period
Corporate Taxes Payable
-
3.535
Taxation on Securities Income
234
215
Tax on Real Estates Income
-
Banking Insurance Transaction tax (BITT)
2.787
1.719
Foreign Exchange Transactions tax
-
Value Added Tax Payable
1.523
1.510
Others (*)
771872
Total
5.315
7.851
(*)
Includes withholding income taxes amounting to TL 743 as of 31 December 2012 (31 December 2012: TL 831).
8.a.3 Information on premium payables
Current period
Prior period
Social Security Premiums-Employee 97
89
Social Security Premiums-Employer 111
94
Bank Pension Fund Premium-Employees
-
Bank Pension Fund Premium-Employer
-
Pension Fund Membership Fee and Provisions-Employee
-
Pension Fund Membership Fee and Provisions-Employer -
Unemployment Insurance-Employee
7
6
Unemployment Insurance-Employer 14
12
Others
-
Total
229
201
8.b Information on deferred tax liability
As of 31 December 2013, net deferred tax liability calculated on the timing differences between applied accounting polices
with valuation base and tax regulations, amounting to TL 3.029. ( 31 December 2012: TL 4.834 ). Related balances comprise
deferred tax asset/liability are presented below.
Deutsche Bank
Annual Report 2013
106
At 31 December 2013
Current period
Prior period
Accumulated Deferred Tax Accumulated Deferred Tax
Temporary Asset / Temporary Asset /
Differences
(Liability)
Differences
(Liability)
Impairment on Intangible Assets
59.823
11.965
59.823
11.965
Reserve for Employment Benefits
9.671
1.934
2.367
473
Provisions
144
29
5.333
1.067
Derivative Financial Liabilities -
-
301
60
Other
1.035
207
283
56
Deferred Tax Assets
70.673
14.135
68.107
13.621
Differences Between Carrying Value and Tax Value of
Tangible and Intangible Assets
(85.574)
(17.115)
(92.277)
(18.455)
Derivative Financial Asset Accrual Income
(246)
(49)
-
Deferred Tax Liabilities
(85.820)
(17.164)
(92.277)
(18.455)
Deferred Tax Assets Liability, net
(15.147)
(3.029)
(24.170)
(4.834)
9.Information on liabilities related to assets held for sale and discontinued operations
10.Explanations on the number of subordinated loans the group used, maturity, interest rate, institution that the loan was
borrowed from, and conversion option, if any
11. Information on shareholders’ equity
11.1 Presentation of paid-in capital
Current period
Prior period
Common Stock 135.000
135.000
Preferred Stock -
Total
135.000
135.000
11.2 Paid-in capital amount, explanation as to whether the registered share capital system ceiling is applicable at bank, if so
amount of registered share capital
The Bank is not subject to registered share capital system.
11.3 Information on the share capital increases during the period and their sources
11.4 Information on share capital increases from revaluation funds
11.5 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
11.6 Information on privileges given to shares representing the capital
11.7 Information on securities value increase fund
107
Deutsche Bank
Annual Report 2013
At 31 December 2013
III. Explanations and Notes Related to Off-Balance Sheet Items
1. Information on off balance sheet liabilities
1.a The amount and type of irrevocable commitments
Type of irrevocable commitments
Current Period
Prior Period
Loan Granting Commitments
849.997
537.140
Two Days Forward Buy/Sell Commitments
1.677.815
476.467
Payment Commitments for Checks
44
29
Tax and Fund Liabilities from Export Commitments
5
1
Other Irrevocable commitments
445.245
119.215
Total
2.973.106
1.132.852
1.b Possible losses and commitments resulted from off-balance sheet items including the following
1.b.1Non-cash loans including guarantees, bank acceptances, letters of guarantee substitute for financial guarantees and
other letters of credit
As of 31 December 2013, amount of letters of guarantee, letters of credit, import letter of acceptance and sureties are
amounting to TL 179.363 (31 December 2012: TL 237.120), TL 6.412 (31 December 2012: TL 15.184), TL 728 (31 December
2011: TL 1.210) and TL 1.643 (31 December 2011: TL 58.829), respectively.
1.b.2 Certain guarantees, tentative guarantees, sureties and similar transactions
None except the items explained above in note 1.b.1.
1.c.1 Non-cash loans
Non-Cash Loans against Cash Risks
With Original Maturity up to 1 Year
With Original Maturity of More Than 1 Year
Other Non-Cash Loans
Total
Current Period
Prior Period
-
-
-
187.418
311.861
187.418311.861
1.c.2 Sector risk concentration of non-cash loans
TL
Agriculture
-
Farming and Stockbreeding -
Forestry
-
Fishery
-
Manufacturing
5.581
Mining -
Production
5.581
Electricity, Gas, Water
-
Construction
-
Services
17.891
Wholesale and Retail Trade
12.021
Hotel, Food and Beverage Services
-
Transportation and Telecommunication 5.839
Financial Institutions
31
Real Estate and Renting Services
-
“Self-Employment’’ Type Services
-
Educational Services
-
Health and Social Services
-
Other
-
Total
23.472
Current Period
(%)
FC
-
-
-
-
-
-
-
-
24.00 102.840
-
320
24.00 102.040
-
480
-
20.300
76.00
40.730
51.00
19.657
-
-
25.00
14.555
-
6.518
-
-
-
-
-
-
-
-
-
76
100 163.946
(%)
-
-
-
-
63
-
63
-
12
25
12
-
9
4
-
-
-
-
-
100
TL
-
-
-
-
8.698
-
2.160
6.538
-
14.726
11.286
-
3.409
31
-
-
-
-
-
23.424
Prior Period
(%)
FC
-
-
-
-
-
-
-
-
37 128.566
-
-
9 128.566
28
-
-
80.740
63
79.131
48
66.684
-
-
15
2.480
-
9.967
-
-
-
-
-
-
-
-
-
-
100 288.437
(%)
45
45
28
27
23
1
3
100
108
Deutsche Bank
Annual Report 2013
At 31 December 2013
1.c.3 Non-cash loans classified under Group I and II
Letters of Guarantee
Bank Acceptances
Letters of Credit
Endorsements
Underwriting Commitments
Factoring Related Guarantees
Other Commitments and Contingencies
Total
TL
23.472
-
-
-
-
-
-
23.472
Group I
FC
TL
155.891
-
6.412
-
-
-
1.643
163.946
-
-
-
-
-
-
-
-
Group II
FC
-
2. Information on financial derivative instruments
Derivative Transactions per Their Purposes
Trading
Risk Management
Current Period
Prior Period
Derivatives Held for Trading
Foreign Currency Related Derivative Transactions (I)
1.976.829
1.102.549
-
Currency Forwards 735.391
321.532
-
Currency Swaps
1.241.438
781.017
-
Currency Futures
-
-
-
Currency Options -
-
-
Interest Rate Related Derivative Transactions (II)
-
-
-
Interest Rate Forwards
-
-
-
Interest Rate Swaps
-
-
-
Interest Rate Futures
-
-
-
Interest Rate Options
-
-
-
Other Derivatives Held for Trading (III)
-
-
-
A. Total Derivatives Held for Trading (I+II+III)
1.976.829
1.102.549
-
Derivatives Held for Risk Management
Fair Value Hedge (1)
-
-
-
Cash Flow Hedge (2)
-
-
-
Net Foreign Investment Hedge
-
-
-
B. Total Derivatives Held for Risk Management
-
-
-
Total Derivative Transactions(A+B)
1.976.829
1.102.549
-
3.Information on credit derivatives and risk exposures on credit derivatives
4. Explanations on contingent liabilities and assets
There is ongoing law suits against the Bank and there is no provision requirement due to immateriality (31 December 2012:
None).
Deutsche Bank
Annual Report 2013
109
At 31 December 2013
5. Explanations on services provided on behalf of third parties
The Bank provides purchase and sales of the financial instruments and custody services on behalf of the third parties.
Financial instruments (notional values) held on behalf of the individuals and corporates by the Bank are as follows:
Current Period
Prior Period
Government Bonds-TL
35.734.399
32.461.246
Private Sector Bonds
1.097.792
1.000.693
Warrants
970.645
1.182.728
Share Certificates-TL
7.510.698
6.642.063
Cheques in Portfolio-TL
33.707
16.111
Cheques in Portfolio-FC
8.927
4.835
Other Items Under Custody
21.343
17.826
Total
45.377.511
41.325.502
IV. Explanations and Notes Related to Income Statement
1. Information on interest income:
1.a Information on interest income on loans (*)
Current Period
Priod Period
TL
FC
TL
FC
Short-Term Loans 29.949
5.342
17.093
11.505
Medium/Long-Term Loans
-
2.079
-
Loans Under Follow-up -
-
-
Premiums Received from Resource Utilisation Support Fund -
-
-
Total
29.949
7.421
17.093
11.505
(*)
Includes also the fee and commission income on cash loans.
1.b Information on interest income on banks
Current Period
Priod Period
TL
FC
TL
FC
-
-
-
Domestic Banks
4.273
-
5.525
Foreign Banks
3.296
4.321
1
Foreign Head Offices and Branches
-
-
-
Total
7.569
9.846
1
1.c Information on interest income on marketable securities
Current Period
Priod Period
TL
FC
TL
FC
Financial Assets Held for Trading
85.707
-
227.955
Financial Assets At Fair Value Through Profit or Loss
-
-
-
-
-
-
-
-
-
Total
85.707
227.955
1.dInformation on interest income received from associates and subsidiaries
Deutsche Bank
Annual Report 2013
110
At 31 December 2013
2. Information on interest expenses
2.a Information on interest expense on funds borrowed (*)
Current Period
Priod Period
TL
FC
TL
FC
Banks
4.010
2.169
19
2.494
-
-
-
Domestic Banks
-
-
-
Foreign Banks
4.010
2.169
19
2.494
Foreign Head Offices and Branches
-
-
-
Other Institutions
-
-
-
Total
4.010
2.169
19
2.494
(*)
Includes also the fee and commission expense on funds borrowed.
2.b Information on interest expense paid to associates and subsidiaries
2.c Interest expense on securities issued
2.d Maturity structure of the interest expense on deposits
Time Deposits
Demand
Up to 1
1-3
3-6
6-12
1 Year
Deposits
Month
Months
Months
Months
and Over
Total
TL
Bank Deposits
263
1.291
-
-
-
-
1.554
Saving Deposits
-
-
-
-
-
-
-
-
-
-
-
-
Commercial Deposits
45
4.317
-
-
-
4.362
Other Deposits
-
302
-
-
-
302
“7 Days Notice” Deposits
-
-
-
-
-
-
Total
308
5.910
-
-
-
6.218
FC
-
57
14
24
-
-
95
-
-
-
-
-
-
-
-
-
-
-
-
Bank Deposits
-
809
-
-
-
-
809
Total
-
866
14
24
-
-
904
Grand Total
308
6.776
14
24
-
-
7.122
Time Deposits
Demand
Up to 1
1-3
3-6
6-12
1 Year
Deposits
Month
Months
Months
Months
and Over
Total
TL
Bank Deposits
241
949
-
-
-
-
1.190
Saving Deposits
-
-
-
-
-
-
-
-
-
-
-
-
Commercial Deposits
42
8.131
417
-
-
-
8.590
Other Deposits
-
206
84
-
-
-
290
-
-
-
-
-
-
Total
283
9.286
501
-
-
-
10.070
FC
-
94
16
17
-
-
127
-
-
-
-
-
-
-
-
-
-
-
-
Bank Deposits
-
1.746
-
-
-
-
1.746
Total
-
1.840
16
17
-
-
1.873
Grand Total
283
11.126
517
17
-
-
11.943
Deutsche Bank
Annual Report 2013
111
At 31 December 2013
3.Information on dividend income
4. Information on trading loss/income (Net)
Current Period
Prior Period
Income
3.079.351
1.929.843
Capital Market Transactions
83.690
29.756
Derivative Financial Transactions (*)
1.152.207
1.148.232
Foreign Exchange Gains
1.843.454
751.855
Losses (-)
3.179.522
2.015.661
Capital Market Transactions 139.013
66.486
1.015.492
1.202.183
Derivative Financial Transactions (*)
Foreign Exchange Losses
2.025.017
746.992
Net Income/(Losses) (Net)
(100.171)
(85.818)
Foreign exchange loss from derivative transactions is amounting to TL 150.257 (31 December 2012: loss amounting to TL
5.338).
(*)
5. Information on other operating income
As of 31 December 2012, the Bank’s other operating income is amounting to TL 16.433 (31 December 2012: TL 7.511).
Current Period
Prior Period
Service Income – FC
12.382
2.578
Service Income – TL
3.598
3.521
Other
453
1.412
Total
16.433
7.511
6. Provisions for losses on loans and receivables
Current Period
Prior Period
Specific Provisions for Loans and Receivable
-
Loans and Receivables in Group III
-
Loans and Receivables in Group IV
-
Loans and Receivables in Group V
-
General Provisions
6.425
Provision for Possible Losses
-
Foreign Exchange Losses on Foreign Currency
-
Impairment Losses on Securities
3.745
Financial Assets at Fair Value through Profit or Loss
3.745
1.804
Available-for-sale Financial Assets
-
Other Impairment Losses -
Associates
-
Subsidiaries
-
Joint Ventures
-
Held to Maturity Financial Securities
-
Other -
Total
10.1701.804
Deutsche Bank
Annual Report 2013
112
At 31 December 2013
7. Information on other operational expenses
Current Period
Prior Period
Personnel Expenses
25.648
24.885
Reserve for Employee Termination Benefits 100
214
Bank Pension Fund Deficit Provisions
-
Impairment Losses on Tangible Assets -
Depreciation Expenses of Tangible Assets
1.157
1.437
Impairment Losses on Intangible Assets
-
Impairment Losses on Goodwill
-
Amortization Expenses of Intangible Assets
8.663
7.911
Impairment Losses on Investments Accounted Under Equity Method
-
Impairment Losses on Assets to be Disposed
-
Depreciation Expenses of Assets to be Disposed
-
Impairment Losses on Assets Held for Sale
-
Other Operating Expenses 32.870
32.077
Operational Lease Related Expenses
2.917
2.787
Repair and Maintenance Expenses 769
396
Advertisement Expenses -
Other Expenses (*)
29.184
28.894
Loss on Sale of Assets
-
Other -
Other (**)
21.561
17.987
Total
89.999
84.511
The “Other operating expenses” includes communication expenses amounting to TL 6.633 (31 December 2012: TL 5.712),
benefits and services obtained from third parties amounting to TL 2.397 (31 December 2012: TL 2.283), information and
technology expenses amounting to TL 2.557 (31 December 2012: TL 2.154) and Deutsche Bank Group management service
expenses amounting to TL 3.445 (31 December 2012: TL 3.975).
(**)
As of 31 December 2013 “Other” includes short term employee benefits amounting to TL 14.372 (31 December 2012: TL
12.008).
(*)
8. Profit/loss before taxes from continuing and discontinued operations
As of 31 December 2013 the Bank has a profit before tax amounting to TL 4.132 (31 December 2012: profit of TL 130.632).
9. Information on provision for taxes from continuing and discontinued operations
9.1 Information on current tax income/ expense and deferred tax income/expense from continuing and discontinued
operations
As of 31 December 2013 the Bank has deferred tax income amounting to TL 1.805 (31 December 2012: TL 305 deferred tax
expense) and current tax expense amounting to TL 3.850 (31 December 2012: TL 26.830).
9.2 Deferred tax income or expense from temporary differences of continuing and discontinued operations
The deferred tax income amounting to TL 1.805 for the year ended 31 December 2013 (31 December 2012: TL 305 deferred
tax expense) is arising from timing differences resulting from the temporary differences between applied accounting
policies and tax regulations.
9.3Deferred tax income/expense from the temporary differences, tax losses or tax exemptions of continuing and
discontinued operations
As of 31 December 2013, deferred tax income presented in the income statement includes the net amount remaining after
netting of tax deductible timing differences and taxable timing differences. The Bank does not have prior years’ losses.
Deutsche Bank
Annual Report 2013
113
At 31 December 2013
10.Information on net operating profit/loss after taxes of continuing operations and discontinued operations
For the year ended 31 December 2013, the Bank has profit after tax amounting to TL 2.087.
11. Information on net profit and loss for the period
11.1The nature and amount of certain income and expense items from ordinary operation is disclosed if the disclosure for
nature, amount and repetition rate of such items is required for the complete understanding of the Bank’s performance for
the period
The main operations of the Bank are interbank money market transactions, marketable securities transactions, foreign
currency transactions, custody services and providing collateralised non-cash loans. Therefore; net interest income, net
trading income, net foreign exchange gain and fees and commission income from custody services are the most important
captions of the Bank’s income statement.
Current Period
Priod Period
Interest Income/(Expense), Net
132.092
250.149
Income/(Loss) from Capital Market Transactions, Net
(55.323)
(36.730)
Gain/(Loss) from Derivative Financial Transactions, Net
136.715
(53.951)
Foreign Exchange Gains/(Losses), Net
(181.563)
4.863
Commissions from Custody Operations
25.395
18.500
Commissions from Non-cash Loans
1.712
1.668
Commissions from Intermediary Services
38.777
31.383
Other Commission Income
2.216
2.671
11.2 Effects of changes in accounting estimates on the current and following periods’ profit/loss
There is no significant change in accounting estimates which would affect the current or following period.
12. Components of other items in income statement, as each sub-account exceeding 20% of the total separately, exceeding
10% of total income statement
Other fee and commission income
Current Period
Priod Period
TL
FC
TL
FC
Commissions from Custody Operations
25.395
-
18.500
Commissions from Intermediary Services
-
38.777
-
31.383
Other Fee and Commissions
2.216
-
1.099
1.572
Total
27.611
38.777
19.599
32.955
Other fee and commission expense
Current Period
Priod Period
TL
FC
TL
FC
Commissions due to Custody Operations
7.781
-
4.528
Commissions Paid to Intermediary Services
-
637
-
3.115
Commissions Paid to Correspondent Banks
-
895
-
697
Commissions due to Intermediary Services
-
-
-
Other Fee and Commissions
2.220
620
313
464
Total
10.001
2.152
4.841
4.276
Deutsche Bank
Annual Report 2013
114
At 31 December 2013
V. Explanations and Notes Related to Changes in Shareholders’ Equity
1. Information on increase due to revaluation of available for sale financial assets
2. Information on increases due to cash flow hedges
3.Reconciliation of foreign exchange differences at beginning and end of current period
4. Information on decrease due to revaluation of available for sale financial assets
5. Information on distribution of profit
Based on the decision taken at General Assembly meeting of the Bank held on 28 March 2013, dividend amounting to
TL 90.261 is distributed to shareholders after allocating first legal reserves amounting to TL 5.190 from the net profit
amounting to TL 104.107 and allocated second legal reserves amounting to TL 8.351 and the amounting to TL 305 is
transferred to extraordinary reserves. Since the General Assembly meeting has not been held as of 31 December 2013,
there has not been made any decision regarding profit distribution yet.
VI. Explanations and Notes Related to Statement of Cash Flows
1. Information on other items and effect of exchange rate on cash and cash equivalents in Cash Flow Statement;
The “others” account included in “operating profit before changes in operating assets and liabilities” are comprised of
net trading gain/loss, impairment loss provision on loans and receivables and other operating income/loss. The “net
increase/ (decrease) in other liabilities” account in “changes in operating assets and liabilities” is comprised of the changes
in miscellaneous liabilities, other liabilities, provision expenses, lease payables and tax liabilities. The effect of change in
foreign exchange rate on cash and cash equivalents as of 31 December 2013 is approximately increase of amounting to TL
6.098 (31 December 2012: decrease of TL 6.856).
2. Cash and cash equivalents at the beginning of the period
Cash contains, cash and cash in foreign currency, cash equivalents contain unrestricted deposits in Central Bank of Turkey,
money market operations and bank deposits and money market placements whose original maturities are up to 3 months
as of 31 December 2013 and 31 December 2012.
1 January 2013
1 January 2012
Cash 285
257
Cash Equivalents
140.193
291.268
Balances with Central Bank of Turkey
98.505
9.025
Banks’ Demand Deposits and Time Deposits Whose Original Maturities Up to 3 Months
41.688
112.243
-
170.000
Total
140.478
291.525
3. Cash and cash equivalents at the end of the period
31 December 2013
31 December 2012
Cash 159
285
Cash Equivalents
420.326
140.193
Balances with Central Bank of Turkey
228.364
98.505
Banks’ Demand Deposits and Time Deposits Whose Original Maturities Up to 3 Months
191.962
41.688
-
Total
420.485
140.478
Deutsche Bank
Annual Report 2013
115
At 31 December 2013
4. Restricted cash and cash equivalents due to legal requirements or other reasons
There are no cash and cash equivalents restricted for the usage of the Bank by legal limitations and other reasons (31
December 2012: None).
There is no additional information that needs to be disclosed in addition to those disclosed in Note 1.
VII. Explanations and Notes Related to Bank’s Risk Group
1.Transactions with the Bank’s risk group; lendings and deposits and other related party transactions outstanding at period
end and income and expenses from such transactions incurred during the period
1.1 Current period
Associates, Subsidiaries Direct and Indirect Other Components in
and Joint Ventures
Shareholders of the Bank
Risk Group
Bank’s Risk Group Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Balance at the Beginning of the Period -
-
54.073
181.953
955
Balance at the End of the Period
-
-
76.053
28.413
973
Funds Borrowed
-
235.170
-
-
-
-
1.071.818
-
-
Interest and Commission Income
-
-
40.326
78
-
Interest and Commission Expense
-
-
3.345
-
1.615
-
1.2 Prior Period
and Joint Ventures
Risk Group
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
-
45.946
172.542
1.902
-
-
54.073
181.953
955
Funds Borrowed
-
608.570
-
-
-
-
235.170
-
-
Interest and Commission Income
-
-
33.804
213
-
Interest and Commission Expense
-
-
7.534
-
2.018
-
1.3Information on deposits of the Bank’s risk group
and Joint Ventures
Risk Group
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Deposits
-
96.701
23.172
31.796
2.296
-
-
224.894
96.701
33.496
31.796
Interest Expenses
-
-
49
51
194
138
Deutsche Bank
Annual Report 2013
116
At 31 December 2013
1.4 Information on forward and option agreements and other similar agreements with the Bank’s risk group
and Joint Ventures
Risk Group
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Transactions at Fair Value
Through Profit and Loss
-
-
652.755
3.000.528
-
End of the Period -
-
2.423.944
652.755
-
Total Profit / Loss
-
-
(242)
(30.655)
-
(114)
Transactions for hedging
purposes
-
-
-
-
-
End of the Period
-
-
-
-
-
Total Profit / Loss
-
-
-
-
-
2. Information on the Bank’s risk group
2.1The relations with entities that are included in the Bank’s risk group and controlled by the Bank
The Bank performs various transactions with the group companies as a part of the banking transactions in accordance with
the ordinary bank-client relationship and market conditions within the limitations determined by the Banking Law.
2.2The type of transaction, the amount and its ratio to total transaction volume, the amount of significant items and their
ratios to total items, pricing policy and other issues
Current Period
Priod Period
According to the According to the
Amounts in the Amounts in the
Financial
Financial Amount
Statements%
Amount
Statements%
Banks
4.420
1%
13.620
33%
72.606
8%
41.408
9%
Non-cash Loans
28.413
15%
181.953
58%
Deposits
258.390
44%
128.497
30%
Interest Income on Loans
2.129
6%
2.592
9%
Interest Expense on Deposits
243
3%
189
2%
Interest Expense on Funds Borrowed
6.179
100%
2.401
96%
Funds Borrowed
1.071.818
100%
235.170
100%
Fees and Commissions Received
38.275
56%
31.425
58%
Fees and Commissions Paid
1.355
11%
2.074
23%
Interest Expense on Money Market Placements
1.615
12%
2.018
6%
Other Operating Income
12.651
77%
6.083
81%
Other Operating Expense
7.176
8%
7.931
9%
Derivative Financial Instruments
2.423.944
66%
652.755
41%
Terms of transactions made with group companies are set in accordance with the market prices, if market prices do not
exist cost plus method is used. Except for the situations requiring separate disclosure, there is not any account balance that
is similar in nature and presented as an aggregate line.
Deutsche Bank
Annual Report 2013
117
At 31 December 2013
2.3 Equity accounting
None.
2.4 Information on transactions such as purchase-sale of immovable and other assets, purchase-sale of service, agent
agreements, financial lease agreements, transfer of the information gained as a result of research and development, licence
agreements, financing (including loans and cash or in kind capital), guarantees, collaterals and management contracts
The Bank has no agreement signed for asset purchases/sales, service rendering, agencies, finance lease contracts, research
and development and licences with the group companies as of 31 December 2013.
The service agreement signed with Deutsche Bank AG includes the conditions of calculation of service fee and cost based
on the annual defined rates and transfer of the calculated amount to the service-rendering bank’s account in cash, for
intermediary services performed by Bank’s sales executives in the transactions of other group companies and intermediary
services performed by sales executives of other group banks.
In accordance with the agreement signed with Deutsche Bank AG, which is valid since January 2004, the Bank pays a service
fee to Deutsche Bank AG in return for global and regional management, leadership and coordination activities provided to the
Bank by the top management of Deutsche Bank AG.
In accordance with the agreement signed with Bebek Varlık Yönetimi A.Ş., which is valid since January 2005, Bebek Varlık
Yönetimi A.Ş. pays a service fee to the Bank in return for the operational services that is provided by the Bank.
In accordance with the agreement signed with Deutsche Bank AG, which is valid since January 2005, Deutsche Bank AG pays a
service fee to the Bank in return for the services related to financial sector cash management products.
Deutsche Securities Menkul Değerler A.Ş. benefits from the Bank’s employees and similar services and hence pays in return
for these services to the Bank in the framework of the signed agreement.
2.5 Information on benefits provided to top management
Benefits paid to key management personnel in the current period amounting to TL 17.172 (31 December 2012: TL 15.127).
VIII.Explanations and notes to the domestic, foreign, off-shore branches and foreign representatives of the Bank
Bank has no domestic, foreign or off-shore branches. As of 31 December 2013, number of employees of the Bank is 110 (31
December 2012: 105).
IX. Explanations and notes related to subsequent events
1.Significant events and matters arising subsequent to reporting date and their financial statement effects
None.
Deutsche Bank
Annual Report 2013
118
At 31 December 2013
SECTION SIX
OTHER EXPLANATIONS AND NOTES
I. O
ther explatanations related to the Bank’s operations
None.
SECTION SEVEN
EXPLANATIONS ON INDEPENDENT AUDITORS’ REPORT
I. E
xplanations on the independent auditors’ report
Unconsolidated financial statements and the notes to the financial statements as at 31 December 2013 have been audited
by Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (“the Turkish member firm of KPMG International
Cooperative, a Swiss entity”) and an unqualified audit opinion is rendered on 5 March 2014.
II. Explanations and notes prepared by the independent auditor
TAS 19 (“Employee Benefits”) is amended effective from 1 January 2013. In accordance with the amendment all actuarial
gains and losses on defined benefit plans should be recognised in other comprehensive income. Due to immaterial actuarial
gain and losses balances as of 31 December 2013 and 31 December 2012, they are not recognized under equity and recognized
through profit or loss.
We aspire to be the leading client-centric
global universal bank
We serve shareholders best by putting our
clients first and by building a global network
of balanced businesses underpinned by
strong capital and liquidity.
We value our German roots and remain
dedicated to our global presence.
We commit to a culture that aligns risks and
rewards, attracts and develops talented
individuals, fosters teamwork and partnership
and is sensitive to the society in which we
operate.
Deutsche Bank A.Ş.
Trade Registry Number: 244378
Central Registration System Number (MERSIS): 0-8760-0487-2200015
Esentepe Mahallesi Büyükdere Caddesi
Tekfen Tower No: 209 K: 17-18
Şişli 34394 Istanbul / Turkey
Tel : +90 212 317 0100
Fax : +90 212 317 0105
www.db.com.tr
muhaberat.ist@list.db.com

Deutsche Bank A.Ş. Annual Report 2013 Deutsche Ba

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