We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Turbine Aviation Inc (CE) | USOTC:TURA | OTCMarkets | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.0001 | 0.00 | 01:00:00 |
Hot Features
Premium
RNS Number:0692L
Turk Ekonomi Bankasi A.S.
14 May 2003
Turk Ekonomi Bankasi
Anonim Sirketi
Unconsolidated Financial Statements
As of March 31, 2003
Together With Review Report
(CONVENIENCE TRANSLATION OF A REPORT AND FINANCIAL STATEMENTS
ORIGINALLY ISSUED IN TURKISH- SEE SECTION III, NOTE XXV)
(Convenience Translation of A Report And Financial Statements
Originally Issued In Turkish - See Section III, Note XXV)
TURK EKONOMI BANKASI ANONIM SIRKETI
REVIEW REPORT AS OF MARCH 31, 2003
We have reviewed the balance sheet of Turk Ekonomi Bankasi Anonim Sirketi as of
March 31, 2003 and the related statement of income for the interim period then
ended. These financial statements are expressed in the equivalent purchasing
power of Turkish lira as of March 31, 2003. These financial statements are the
responsibility of the Bank's management. Our responsibility as independent
auditors is to issue a review report on these financial statements based on our
review.
We conducted our review in accordance with the auditing standards which were
determined under the provisions of Banking Law Number 4389. These standards
require that the review should be planned and performed to obtain limited
assurance as to whether the financial statements are free of material
misstatement. A review is limited primarily to inquires of bank personnel and
analytical procedures applied to financial data and thus provides less assurance
than an audit. We have not performed an audit and, accordingly we do not
express an opinion.
Based on our review, nothing has come to our attention that causes us to believe
that the accompanying interim financial statements of Turk Ekonomi Bankasi
Anonim Sirketi at March 31, 2003 are not presented fairly, in all material
respects, in accordance with the accounting principles and standards that are
based on the Article 13 of the Banking Law number 4389.
Additional paragraph for convenience translation to English:
The above mentioned accounting principles differ from International Financial
Reporting Standards (IFRS) issued by International Accounting Standards Board
and so far as such differences apply to the financial statements of the Bank
they mainly relate to the format of financial statements and disclosure
requirements, accounting for deferred taxes and accounting for retirement pay
liabilities. The effects of the differences between these accounting principles
and accounting principles generally accepted in the countries in which the
accompanying financial statements are to be used and IFRS have not been
quantified in the accompanying financial statements. Accordingly, the
accompanying financial statements are not intended to present the financial
position and results of operations in accordance with the accounting principles
generally accepted in the countries of users of the financial statements and
IFRS. The Bank's consolidated financial statements prepared in accordance with
the accounting principles and standards that are based on the Article 13 of the
Banking Law number 4389 will be issued separately.
Guney Serbest Muhasebeci Mali Mupavirlik Anonim Sirketi
An Affiliated Firm of Ernst & Young International
Esra Peri, SMMM
May 9, 2003
Istanbul, Turkey
INDEX
SECTION ONE Page no.
General Information
I. Footnotes and Explanations on the Bank's Service Activities and Operating Areas 1
II. The Explanations and Footnotes Regarding the Including Group of the Bank 1
III. The Explanations Regarding the Interim Financial Statements of the Bank 1
SECTION TWO
Unconsolidated Interim
Financial Statements
I. Balance Sheets - Assets 3
II. Balance Sheets - Liabilities 4
III. Statements of Income 5
IV. Statements of Off Balance Sheet Commitments 6
SECTION THREE
Accounting Principles
I. Basis of Presentation 7
II. Explanations on Forward, Option Contracts and Derivative Instruments 7
III. Netting of Financial Assets and Liabilities 8
IV. Interest Income and Expense 8
V. Fees and Commission Income and Expense 8
VI. Securities Held for Trading 9
VII. Sales and Repurchase Agreements and Lending of Securities 9
VIII. Securities Held to Maturity, Securities Available for Sale and Bank
Originated Loans and Receivables 9
IX. Participations 10
X. Subsidiaries 10
XI. Originated Loans and Receivables and Provisions for Loan Impairment 10
XII. Goodwill and Other Intangible Fixed Assets 11
XIII. Tangible Fixed Assets 11
XIV. Leasing Transactions 12
XV. Provisions and Contingent Liabilities 12
XVI. Liabilities Regarding Employee Benefits 13
XVII. Taxation 13
XVIII. Additional Explanations on Borrowings 14
XIX. Paid-in Capital and Share Certificates 14
XX. Acceptances 14
XXI. Government Incentives 14
XXII. Securities at Custody 14
XXIII. Impairment of Assets 14
XXIV. Segment Reporting 14
XXV. Other Matters 15
SECTION FOUR
Information on
Financial Structure
I. Capital Adequacy Standard Ratio 16
II. Market Risk 19
III. Foreign Currency Risk 19
IV. Interest Rate Risk 21
V. Liquidity Risk 23
SECTION FIVE
Footnotes and Explanations on
Unconsolidated Financial Statements
I. Footnotes and Explanations Related to the Assets 25
II. Footnotes and Explanations Related to the Liabilities 34
III. Footnotes and Explanations Related to the Income Statement 38
IV. Footnotes and Explanations Related to the Off-balance Sheet Commitments 40
V. Footnotes and Explanations on the Risk Group of the Bank 42
VI. Footnotes and Explanations on Inflation Accounting 44
VII. Explanations Related to Subsequent Events 46
SECTION SIX
Independent Limited Review Report
I. The Explanations on the Independent Limited Review Report 46
SECTION ONE
GENERAL INFORMATION
I- Footnotes and Explanations on the Bank's Service Activities and
Operating Areas
a) Commercial name of the Bank : Turk Ekonomi Bankasi Anonim Sirketi (the Bank)
Reporting period : 1 January - 31 December 2002
Address of the head office : Meclis-i Mebusan Cad. 35, Findikli 34427 / ISTANBUL
Telephone number : (0212) 251 21 21
Facsimile number : (0212) 249 65 68
Web page : www.teb.com.tr
E-mail address : @teb.com.tr
b) The Bank's service activities and operating areas: The Bank's operating
areas include, commercial financing and corporate banking, fund management
operations, retail banking and credit card operations.
c) Financial statements and relevant explanations together with the
footnotes are stated in Billions of Turkish Lira.
II. The Explanations and Footnotes Regarding the Including Group of the Bank
The Group of the Bank: Turk Ekonomi Bankasi Anonim Sirketi ("the Bank") is
included in the Colakoglu Group. 70.08% of the shares of the Bank belongs to TEB
Mali Yatirimlar Anonim Sirketi (TEB Mali Yatirimlar) and 8.60% of the shares
belongs to Colakoglu Metalurji Anonim Sirketi.
III. Explanations on The Interim Financial Statements
a) Accounting principles and basis of valuation used in the preparation of
year-end financial statements are also used for the preparation of interim
financial statements without any changes or exceptions, and are summarized in
Section Three below.
b) There are no transactions realized in the interim period that display a
seasonal or a periodical nature.
c) There are no non-recurring transactions or basic accounting
misstatements.
d) There are no extraordinary items in terms of nature or amount that
effect the assets, liabilities, equity, net income or the cash flow of the Bank.
e) Prior period interim financial statements, do not contain any changes
with respect to the estimated values related with the current period. There
are no items in the prior period financial statements that are recorded with
their estimated value.
f) There are no convertible bonds or any other debt securities issued
during the current period.
g) There are no dividends paid during the current period.
h) There are no subsequent events that occurred after the preparation date
of the interim financial statements which have a material impact on the interim
financial statements.
i) There are no transactions that may cause a structural change for the
Bank such as restructuring, mergers and acquisitions, or discontinue of any
operations.
j) There are no changes in the subsequent commitments and contingencies
of the Bank that have arisen after the year-end balance sheet date.
SECTION TWO
UNCONSOLIDATED INTERIM FINANCIAL STATEMENTS
I. Balance Sheets - Assets
II. Balance Sheets - Liabilities
III. Statements of Income
IV. Statements of Off Balance Sheet Commitments
I- BALANCE SHEETS - ASSETS
Reviewed Audited
Current Period Prior Period
Note Ref. 31.03.2003 31.12.2002
ASSETS (Section TL FC Total TL FC Total
five)
I. CASH AND BALANCES WITH THE CENTRAL 13,785 316,763 330,548 23,444 459,267 482,711
BANK OF TURKEY
1.1 Cash - 7,827 - 7,827 6,810 6,810
-
1.2 Foreign currency - - 76,727 76,727 90,617 90,617
-
1.3 Balances with the Central Bank of I-1 5,958 240,036 245,994 16,634 368,650 385,284
Turkey
II. TRADING SECURITIES (Net) 12,308 23,654 35,962 28,092 3,304 31,396
2.1 Public sector debt securities I-2 12,308 19,232 31,540 28,092 2,999 31,091
2.1.1 Government bonds I-2 11,749 16,814 28,563 21,638 - 21,638
2.1.2 Treasury bills I-2 558 - 558 6,453 6,453
-
2.1.3 Other I-2 1 2,418 2,419 1 2,999 3,000
2.2 Share certificates - - - -
- - -
2.3 Other marketable securities - - 4,422 4,422 305 305
-
III. BANKS AND OTHER FINANCIAL 25,511 203,877 229,388 25,862 341,924 367,786
INSTITUTIONS
3.1 Due from banks - 25,511 203,877 229,388 25,862 341,924 367,786
3.1.1 Domestic banks - 25,511 47,620 73,131 25,862 118,893 144,755
3.1.2 Foreign banks I-3 - 156,257 156,257 223,031 223,031
-
3.2 Other financial institutions - - - -
- - -
IV. MONEY MARKET PLACEMENTS 243,850 103,704 347,554 255,416 200,885 456,301
4.1 Interbank money market placements - 243,850 103,704 347,554 255,416 200,885 456,301
4.2 Istanbul Stock Exchange money market -
placements - - - - - -
4.3 Receivables from reverse repurchase -
agreements - - - - - -
V. SECURITIES AVAILABLE FOR SALE (Net) 9 43,950 43,959 10 18,945 18,955
5.1 Share certificates I-5 9 - 9 10 10
-
5.2 Other marketable securities I-5 - 43,950 43,950 18,945 18,945
-
VI. LOANS 366,060 511,829 877,889 400,183 501,075 901,258
6.1 Short term I-6 337,338 492,546 829,884 371,159 482,600 853,759
6.2 Medium and long term I-6 23,607 19,283 42,890 23,447 18,475 41,922
6.3 Loans under follow-up I-6 19,995 - 19,995 22,717 22,717
-
6.4 Specific provisions (-) I-6 (14,880) - (14,880) (17,140) (17,140)
-
VII. FACTORING RECEIVABLES I-7 - - -
- - -
VIII. SECURITIES HELD TO MATURITY (Net) 38,584 - 38,584 41,088 41,088
-
8.1 Public sector debt securities I-8 38,584 - 38,584 41,088 41,088
-
8.1.1 Government bonds I-8 38,584 - 38,584 41,088 41,088
-
8.1.2 Treasury bills I-8
- - - - - -
8.1.3 Other I-8
- - - - - -
8.2 Other marketable securities I-8
- - - - - -
IX. INVESTMENTS AND ASSOCIATES (Net) 6,280 - 6,280 6,342 6,342
-
9.1 Financial investments and associates I-9 6,280 - 6,280 6,342 6,342
-
9.2 Non-Financial investments and - - - -
associates - - -
X. SUBSIDIARIES (Net) 66,740 56,343 123,083 64,543 49,169 113,712
10.1 Financial subsidiaries I-10 66,740 56,343 123,083 64,543 49,169 113,712
10.2 Non-Financial subsidiaries -
- - - - - -
XI. OTHER INVESTMENTS (Net) I-11
- - - - - -
XII. FINANCE LEASE RECEIVABLES (Net)
- - - - - -
12.1 Gross finance lease receivables I-12
- - - - - -
12.2 Unearned income ( - ) I-12
- - - - - -
XIII. RESERVE DEPOSITS - 9,033 126,480 135,513 10,388 137,866 148,254
XIV. MISCELLANEOUS RECEIVABLES I-13 365 1,743 2,108 293 43 336
XV. ACCRUED INTEREST AND INCOME 26,259 4,464 30,723 27,042 3,788 30,830
RECEIVABLES
15.1 Loans I-14 11,099 3,150 14,249 10,489 2,948 13,437
15.2 Marketable securities I-14 5,316 635 5,951 4,503 419 4,922
15.3 Other I-14 9,844 679 10,523 12,050 421 12,471
XVI. PROPERTY AND EQUIPMENT (Net) 40,448 - 40,448 41,849 41,849
-
16.1 Book value I-15 92,518 - 92,518 94,127 94,127
-
16.2 Accumulated depreciation ( - ) I-15 (52,070) - (52,070) (52,278) (52,278)
-
XVII. INTANGIBLE ASSETS (Net) 3,280 - 3,280 3,331 3,331
-
17.1 Goodwill I-16 - - -
- - -
17.2 Other I-16 7,633 - 7,633 7,408 7,408
-
17.3 Accumulated amortization ( - ) (4,353) - (4,353) (4,077) (4,077)
-
OTHER ASSETS I-17 26,792 900 27,692 21,165 2,007 23,172
XVIII.
TOTAL ASSETS 879,304 1,393,707 2,273,011 949,048 1,718,273 2,667,321
The accompanying notes are an integral part of these balance sheets.
II- BALANCE SHEETS - LIABILITIES
Reviewed Audited
Current Period Prior Period
Note Ref. 31.03.2003 31.12.2002
LIABILITIES (Section TL FC Total TL FC Total
five)
I. DEPOSITS 337,063 1,179,392 1,516,455 401,049 1,500,086 1,901,135
1.1 Bank deposits II-1 22,691 27,331 50,022 20,579 46,796 67,375
1.2 Saving deposits II-1 165,162 - 165,162 183,836 - 183,836
1.3 Public sector deposits II-1 11,283 - 11,283 39 - 39
1.4 Commercial deposits II-1 105,142 - 105,142 159,269 - 159,269
1.5 Other institutions deposits II-1 32,785 - 32,785 37,326 - 37,326
1.6 Foreign currency deposits II-1 - 1,136,134 1,136,134 - 1,428,052 1,428,052
1.7 Precious metals deposit accounts II-1 - 15,927 15,927 - 25,238 25,238
II. MONEY MARKET BALANCES 11,647 - 11,647 25,626 - 25,626
2.1 Interbank money market takings - - - - - - -
2.2 Istanbul Stock Exchange money market - - - - - - -
takings
2.3 Funds provided under repurchase II-2 11,647 - 11,647 25,626 - 25,626
agreements
III. FUNDS BORROWED 19,690 266,109 285,799 17,921 277,717 295,638
3.1 Funds borrowed from the Central Bank - - - - - - -
of Turkey
3.2 Other funds borrowed II-3 19,690 266,109 285,799 17,921 277,717 295,638
3.2.1 Domestic banks and institutions II-3 18,660 12,954 31,614 17,921 13,649 31,570
3.2.2 Foreign banks, institutions and II-3 1,030 253,155 254,185 - 264,068 264,068
funds
IV. MARKETABLE SECURITIES ISSUED (Net) - - - - - -
4.1 Bills II-4 - - - - - -
4.2 Asset backed securities II-4 - - - - - -
4.3 Bonds II-4 - - - - - -
V. FUNDS II-5 - - - - - -
VI. MISCELLANEOUS PAYABLES II-6 27,575 17,566 45,141 12,197 27,688 39,885
VII. OTHER EXTERNAL RESOURCES - 33,352 9,680 43,032 20,957 7,424 28,381
VIII. TAXES AND OTHER DUTIES PAYABLE II-8 7,503 - 7,503 6,684 - 6,684
IX. FACTORING PAYABLES II-9 - - - - - -
X. FINANCE LEASE PAYABLES (Net) - 6,451 6,451 - 7,582 7,582
10.1 Finance Lease Payables II-10 - 7,866 7,866 - 9,188 9,188
10.2 Deferred finance lease expenses ( - ) II-10 - (1,415) (1,415) - (1,606) (1,606)
XI. ACCRUED INTEREST AND EXPENSES PAYABLE 19,437 3,091 22,528 13,998 2,739 16,737
11.1 Deposits II-11 5,830 964 6,794 5,893 1,137 7,030
11.2 Borrowings II-11 2,068 2,127 4,195 1,823 1,602 3,425
11.3 Repurchase agreements II-11 17 - 17 31 - 31
11.4 Other II-11 11,522 - 11,522 6,251 - 6,251
XII. PROVISIONS 33,199 - 33,199 30,520 - 30,520
12.1 General provisions II-12 6,470 - 6,470 6,848 - 6,848
12.2 Reserve for employee termination II-12 787 - 787 1,041 - 1,041
benefits
12.3 Provisions for income taxes II-12 25,380 - 25,380 22,020 - 22,020
12.4 Insurance technical reserves (Net) - - - - - - -
12.5 Other provisions II-12 562 - 562 611 - 611
XIII. SUBORDINATED LOANS II-12 - 25,501 25,501 - 27,644 27,644
XIV. SHAREHOLDERS' EQUITY 275,720 35 275,755 287,489 - 287,489
14.1 Paid-in capital II-13 55,125 - 55,125 55,125 - 55,125
14.2 Supplementary capital II-13 211,507 35 211,542 211,555 - 211,555
14.2.1 Share premium II-13 - - - - - -
14.2.2 Share cancellation profits - - - - - - -
14.2.3 Marketable securities value increase II-15 178 35 213 226 - 226
fund
14.2.4 Revaluation fund II-16 - - - - - -
14.2.5 Value increase in revaluation fund II-17 - - - - - -
14.2.6 Other capital reserves - - - - - - -
Effect on inflation accounting on - 211,329 - 211,329 211,329 - 211,329
14.2.7. share capital
14.3 Profit reserves - 2,409 - 2,409 - - -
14.3.1 Legal reserves II-18 2,409 2,409 - - -
14.3.2 Status reserves - - - - - - -
14.3.3 Extraordinary reserves II-19 - - - - - -
14.3.4 Other profit reserves - - - - - - -
14.4 Profit or loss - 6,679 - 6,679 20,809 - 20,809
14.4.1 Prior year income/loss - 2,294 - 2,294 - - -
14.4.2 Current year income/loss - 4,385 - 4,385 20,809 - 20,809
TOTAL LIABILITIES 765,186 1,507,825 2,273,011 816,441 1,850,880 2,667,321
The accompanying notes are an integral part of these balance sheets.
III- STATMENTS OF INCOME
Reviewed Unaudited
Current Period Prior Period
Note Ref. 31.03.2003 31.03.2002
INCOME AND EXPENSES (Section Total Total
five)
I. INTEREST INCOME III-1 86,204 97,503
1.1 Interest on loans 42,754 41,403
1.1.1 Interest on TL loans 35,785 34,509
1.1.1.1 Short term loans 33,395 32,734
1.1.1.2 Medium and long term loans 2,390 1,775
1.1.2 Interest on foreign currency loans 6,860 6,824
1.1.2.1 Short term loans 6,512 6,521
1.1.2.2 Medium and long term loans 348 303
1.1.3 Interest on loans under follow-up 109 70
1.1.4 Premiums received from Resource Utilisation Support - -
Fund
1.2 Interest received from reserve deposits 1,520 1,004
1.3 Interest received from banks 6,976 2,860
1.3.1 The Central Bank of Turkey - -
1.3.2 Domestic banks 5,137 1,576
1.3.3 Foreign banks 1,839 1,284
1.4 Interest received from money market transactions 28,484 34,410
1.5 Interest received from marketable securities 6,370 17,663
portfolio
1.5.1 Trading securities 1,006 17,663
1.5.2 Available-for-sale securities 748 -
1.5.3 Held to maturity securities 4,616 -
1.6 Other interest income 100 163
II. INTEREST EXPENSE III-2 40,233 56,080
2.1 Interest on deposits 31,471 36,651
2.1.1 Bank deposits 2,478 1,809
2.1.2 Saving deposits 16,810 18,743
2.1.3 Public sector deposits - 1
2.1.4 Commercial deposits 6,670 10,888
2.1.5 Other institutions deposits 97 75
2.1.6 Foreign currency deposits 5,352 5,099
2.1.7 Precious metals vault accounts 64 36
2.2 Interest on money market transactions - 36
2.3 Interest on funds borrowed 4,636 12,160
2.3.1 The Central Bank of Turkey - -
2.3.2 Domestic banks 2,095 2,021
2.3.3 Foreign banks 2,541 8,847
2.3.4 Other financial institutions - 1,292
2.4 Interest on securities issued - -
2.5 Other interest expense 4,126 7,233
III. NET INTEREST INCOME (I - II) 45,971 41,423
IV. NET FEES AND COMMISSIONS INCOME 4,885 6,301
4.1 Fees and commissions received 8,764 8,682
4.1.1 Cash loans 1,058 834
4.1.2 Non-cash loans 2,264 2,088
4.1.3 Other 5,442 5,760
4.2 Fees and commissions paid 3,879 2,381
4.2.1 Cash loans 661 1,133
4.2.2 Non-cash loans 5 6
4.2.3 Other 3,213 1,242
V. DIVIDEND INCOME - -
5.1 Trading securities - -
5.2 Available-for-sale securities - -
VI. NET TRADING INCOME (4,953) 6,173
6.1 Profit/losses on trading account securities (Net) 1,884 1,782
6.2 Foreign exchange gains/losses (Net) (6,837) 4,391
VII PROFIT/LOSS FROM HELD TO MATURITY MARKETABLE III-3 - -
SECURITIES
VIII. OTHER OPERATING INCOME III-4 4,921 3,281
IX. TOTAL OPERATING INCOME (III+IV+V+VI+VII+VIII) 50,824 57,178
X. PROVISION FOR LOAN LOSSES OR OTHER RECEIVABLES (-) III-5 1,433 5,452
XI. OTHER OPERATING EXPENSES (-) III-6 29,972 29,838
XII. NET OPERATING INCOME (IX-X-XI) 19,419 21,888
XIII. PROFIT/LOSSES FROM ASSOCIATES AND SUBSIDIARIES III-7 11,642 3,415
XIV. NET POSITION INCOME/EXPENSE (21,156) (13,988)
XV. INCOME BEFORE TAXES (XII+XIII) 9,905 11,315
XVI. PROVISION FOR TAXES ON INCOME (-) (5,520) (8,312)
XVII. NET OPERATING INCOME/EXPENSE AFTER TAXES (XIV-XV) 4,385 3,003
XVIII. EXTRAORDINARY INCOME/EXPENSE AFTER TAXES - -
18.1 Extraordinary net income/expense before taxes - -
18.1.1 Extraordinary income - -
18.1. 2 Extraordinary expense (-) - -
18.2 Provision for taxes on extraordinary income - -
XIX. NET PROFIT/LOSSES (XVI+XVII+XVIII-XIX) III-8 4,385 3,003
XX. Earnings/Losses per share 39.77 27.21
The accompanying notes are an integral part of these statement
IV- STATEMENTS OF OFF-BALANCE SHEET COMMITMENTS
Reviewed Audited
Current Period Prior Period
Note Ref. 31.03.2003 31.12.2002
OFF BALANCE SHEET COMMITMENTS (Section TL FC TOTAL TL FC TOTAL
five)
A. OFF BALANCE SHEET COMMITMENTS 649,763 1,808,612 2,458,375 590,841 1,558,002 2,148,843
(I+II+III)
I. GUARANTEES IV-2,3 304,188 580,249 884,437 294,377 613,668 908,045
1.1. Letters of guarantee 304,116 245,702 549,818 294,296 285,613 579,909
1.1.1. Guarantees subject to State 29,364 292 29,656 32,040 284 32,324
Tender Law
1.1.2. Guarantees given for foreign 73,396 3,730 77,126 78,392 10,674 89,066
trade operations
1.1.3. Other letters of guarantee 201,356 241,680 443,036 183,864 274,655 458,519
1.2. Banks loans - 51,547 51,547 - 45,363 45,363
1.2.1. Import letter of acceptance - 51,547 51,547 - 45,363 45,363
1.2.2. Other bank acceptances - - - - - -
1.3. Letters of credit 72 275,090 275,162 81 274,117 274,198
1.3.1. Documentary letters of credit 72 241,505 241,577 81 231,164 231,245
1.3.2. Other letters of credit - 33,585 33,585 - 42,953 42,953
1.4. Prefinancing given as guarantee - - - - - -
1.5. Endorsements - - - - - -
1.5.1. Endorsements to the Central - - - - - -
Bank of Turkey
1.5.2. Other endorsements - - - - - -
1.6. Securities issue purchase - - - - - -
guarantees
1.7. Other guarantees - - - - - -
1.8. Other collaterals - 7,910 7,910 - 8,575 8,575
II. COMMITMENTS 173,757 239,710 413,467 203,700 370,039 573,739
2.1. Irrevocable commitments 173,757 239,710 413,467 203,700 370,039 573,739
2.1.1. Asset purchase commitments - - - 1,124 - 1,124
2.1.2. Deposit purchase and sales - 239,710 239,710 - 370,039 370,039
commitments
2.1.3. Share capital commitment to - - - - - -
associates and subsidiaries
2.1.4. Loan granting commitments 100,940 - 100,940 126,895 - 126,895
2.1.5. Securities issue brokerage - - - - - -
commitments
2.1.6. Commitments for reserve deposit - - - - - -
requirements
2.1.7. Commitments for credit card IV-2 72,817 - 72,817 75,681 - 75,681
limits
2.1.8. Other irrevocable commitments - - - - - -
2.2. Revocable commitments - - - - - -
2.2.1. Revocable loan granting - - - - - -
commitments
2.2.2. Other revocable commitments - - - - - -
III. DERIVATIVE FINANCIAL 171,818 988,653 1,160,471 92,764 574,295 667,059
INSTRUMENTS
3.1. Forward foreign currency buy/ 131,648 509,214 640,862 92,764 239,108 331,872
sell transactions
3.1.1. Forward foreign currency 29,221 284,848 314,069 23,607 140,978 164,585
transactions-buy
3.1.2. Forward foreign currency 102,427 224,366 326,793 69,157 98,130 167,287
transactions-sell
3.2. Swap transactions related to 40,170 460,457 500,627 - 335,187 335,187
f.c. and interest rates
3.2.1. Foreign currency swap-buy 37,210 221,852 259,062 - 166,798 166,798
3.2.2. Foreign currency swap-sell 2,960 238,605 241,565 - 168,389 168,389
3.2.3. Interest rate swaps-buy - - - - - -
3.2.4. Interest rate swaps-sell - - - - - -
3.3. Foreign currency and interest - - - - - -
rate options
3.3.1. Foreign currency options-buy - - - - - -
3.3.2. Foreign currency options-sell - - - - - -
3.3.3. Interest rate options-buy - - - - - -
3.3.4. Interest rate options-sell - - - - - -
3.4. Foreign currency futures - 18,982 18,982 - - -
3.4.1. Foreign currency futures-buy - 9,490 9,490 - - -
3.4.2. Foreign currency futures-sell - 9,492 9,492 - - -
3.5. Interest rate futures - - - - - -
3.5.1. Interest rate futures-buy - - - - - -
3.5.2. Interest rate futures-sell - - - - - -
3.6. Other - - - - - -
B. CUSTODY AND PLEDGED ITEMS 1,194,120 497,702 1,691,822 1,298,857 431,863 1,730,720
(IV+V)
IV. ITEMS HELD IN CUSTODY 967,916 331,596 1,299,512 908,836 288,790 1,197,626
4.1. Assets under management - - - - - -
4.2. Investment securities held in 369,140 217,527 586,667 316,580 162,802 479,382
custody
4.3. Checks received for collection 581,278 49,430 630,708 578,111 49,674 627,785
4.4. Commercial notes received for 16,412 20,994 37,406 14,145 23,566 37,711
collection
4.5. Other assets received for 1,086 43,645 44,731 - 52,748 52,748
collection
4.6. Assets received for public - - - - - -
offering
4.7. Other items under custody - - - - - -
4.8. Custodians - - - - - -
V. PLEDGED ITEMS 226,204 166,106 392,310 390,021 143,073 533,094
5.1. Marketable securities 12,782 10,966 23,748 10,380 9,406 19,786
5.2. Guarantee notes 6,843 1,143 7,986 6,977 1,482 8,459
5.3. Commodity 62,961 15,392 78,353 211,970 - 211,970
5.4. Warranty - - - - - -
5.5. Immovables 114,911 55,182 170,093 125,596 41,641 167,237
5.6. Other pledged items 28,707 83,423 112,130 35,098 90,544 125,642
5.7. Pledged items-depository - - -
TOTAL COMMITMENTS (A+B) 1,843,883 2,306,314 4,150,197 1,889,698 1,989,865 3,879,563
The accompanying notes are an integral part of these statements.
SECTION THREE
ACCOUNTING PRINCIPLES
I- Basis of Presentation
The Bank prepares its financial statements in accordance with the "Accounting
Application Regulations" (AAR) based on Article 13 named as "Accounting and
Recording System" of the Banking Law 4389 and related communiques and related
explanations and further communiques that add or cause a change on the content
of the relevant communiques.
Restatement of Financial Statements in Accordance with The Current Period
Purchasing Power
The "Accounting Standard on Financial Statements at Hyperinflation Periods",
Communique No:14 of "Accounting Application Regulations" (AAR) became effective
from July 1, 2002.
In accordance with the communique No:14, the Bank's financial statements should
be restated, taking the current period equivalent purchasing power of Turkish
lira into account. In other words, Communique No:14 states that, financial
statements prepared in terms of the domestic currency of a country with high
inflation rate should be restated in accordance with the equivalent purchasing
power of the domestic currency at the balance sheet date. Prior period financial
statements should also be restated in their entirety to the measuring unit
current at the balance sheet date. One characteristic that necessitates the
application of inflation accounting under the provisions of Communique No : 14
is a cumulative three-year inflation rate approaching or exceeding 100%.
Restatement of financial statements is based on both the principles described in
Communique No.14 and the wholesale price indices published in its appendix and
the wholesale price indices announced by the State Institute of Statistics.
Detailed information on the application of inflation accounting is given in the
section V, footnote VI, "Footnotes and Explanations on Inflation Accounting" of
the following footnotes.
Other Basis of Valuation
Other basis of valuation used for assets and liabilities in the preparation of
financial statements are explained among the accounting principles for the
related assets and liabilities.
Changes in Accounting Policies and Valuation Methods in the Current Period
Changes in Accounting Policies
Until September 30, 2002, the Bank's financial statements were being prepared in
accordance with the Uniform Chart of Accounts, standard balance sheet, income
statement, supplementary financial statements and footnotes to these financial
statements and the explanations related to the applications of such financial
statements and the accounting and valuation principles thereto that are based on
the article 13 of the Banking Law 4389 as revised by Law Number 4672 and 4491
and the "Accounting Standard on Financial Statements at Hyperinflation Periods",
Communique No:14, published at Official Gazette dated June 22, 2002 and numbered
24793 and which is related to the "Regulation of Accounting Applications" and
became effective from July 1, 2002. After October 1, 2002, the Bank's financial
statements are prepared in accordance with the accounting policies explained
below and included in both Communique No:14 and the other communiques related to
the Regulation of Accounting Applications effective from October 1, 2002.
Accordingly, assets and liabilities were classified as of October 1, 2002 in
accordance with the provisions of the related communiques and the required
changes for the other accounts were made and the effects of such changes were
reflected in the income statement for 2002.
II- Explanations on Forward, Option Contracts and Derivative
Instruments
The Bank makes forward currency agreements and swap transactions to reduce the
foreign currency risk. In accordance with Communique No:1, "Accounting Standards
of Financial Instruments" of AAR, derivative financial instruments that are not
designated as hedging instruments are classified as held-for-trading and carried
at fair value.
As of March 31, 2003, foreign currency forward and swap transactions were
evaluated by comparing year end Bank foreign exchange rates with the forward
rate amortized to the balance sheet date since the book values approximate their
fair values. The resulting gain or loss is reflected to the income statement.
There are no embedded derivatives separated from the host contract or that are
designated as hedging instruments.
Before the effective date of AAR, above-mentioned transactions had been recorded
by means of arbitrage accounting, the changes at the foreign currencies had been
recorded through evaluation under accounts and the liabilities at the maturity
had been followed under off balance sheet commitments. In order to avoid the
effects of the changes at the rates on the income statement, the amounts
followed under off balance sheet commitments had been evaluated and the
generated differences had been recorded under the income and expense accrual
accounts.
Foreign Currency Assets and Liabilities
Gains or losses arising from foreign currency transactions are reflected in the
statement of income as they are realized during the year. Foreign currency
assets and liabilities at each year-end are translated into Turkish lira at the
year-end foreign exchange buying rates announced by the Bank and the resulting
foreign exchange gains or losses are recorded in the statement of income as
foreign exchange loss, net. The net investment in foreign entities as of the
related year-ends were translated into Turkish lira by applying the exchange
rates prevailing at respective dates. The resulting foreign exchange gains or
losses are recorded in the statement of income.
The differences resulting from the translation of the securities issued and
monetary financial assets into Turkish lira are reflected to the statement of
income.
III- Netting of Financial Assets and Liabilities
Financial assets and liabilities are netted off when the Parent Bank has a legal
right and sanction regarding netting off, and when the Bank has the intention of
collecting or paying the net amount of related assets and liabilities or when
the Bank has the right to off set the assets and liabilities simultaneously.
There is no netting of financial assets and liabilities at the accompanying
financial statements as of March 31, 2003.
IV- Interest Income and Expense
Interest income and expense are recognized in the income statement for all
interest bearing instruments on an accrual basis using the effective interest
method. In accordance with the related regulation, the due and not due interest
accruals of the non-performing loans are cancelled and interest income related
to these loans are recorded as interest income only when collected.
V- Fees and Commission Income and Expense
Commission income and fees for various banking services in the period of
collection.
Fees and commissions for funds borrowed paid to other financial institutions,
which is a part of the transaction costs, are recorded as prepaid expenses and
considered as a part of interest of the related funds borrowed and accordingly,
recorded as expense monthly.
The dividend income is reflected to the financial statements on cash basis when
the profit distribution is realized by the participations and the subsidiaries.
VI- Securities Held for Trading
Trading securities are securities which were either acquired for generating a
profit from short-term fluctuations in price or dealer's margin, or are
securities included in a portfolio in which a pattern of short-term profit
taking exists. Trading securities are initially recognized at cost. Transaction
costs of the related securities are included in the initial cost. The positive
difference occurred between the cost and fair value of the marketable security
is accounted as interest and income accrual. The negative difference occurred is
accounted under marketable security diminution in value account.
Since the foreign currency financial assets held at the same portfolio
(Eurobond) do not hold a price formed in an active market and since the fair
values of these securities could not be determined reliably, they are valued at
amortized cost by using relevant interest rates as stated in the articles 8 and
9 of the AAR's Communique No:1, "Accounting Standards of Financial Instruments."
VII- Sales and Repurchase Agreements and Lending of Securities
The Bank has been following the repurchase agreements made with the clients as a
balance sheet item since February 1, 2002 in accordance with the Uniform Chart
of Accounts. Accordingly, the government bonds and treasury bills sold to
clients under repurchase agreements are recorded under the related securities
account in the financial statements and are valued according to the valuation
principles of the related account. Funds obtained by repurchase agreements are
classified as a separate sub account under money markets account in the
liabilities. The interest expense accruals calculated by means of effective
interest method for the funds obtained by means of repurchase agreements are
reflected to the interest and other expense accruals account in the balance
sheet.
The above-mentioned transactions are short term and consists of domestic public
sector debt securities.
The income and expenses generated from above mentioned operations are reflected
to the "Interest Income on Marketable Securities" and "Interest Expense on
Marketable Securities subject to Repurchase Agreement" accounts in the statement
of income.
As of March 31, 2003, the Bank does not have any reverse repo transactions
(December 31, 2002 - None).
As of March 31, 2003, the Bank does not have any lent marketable securities
(December 31, 2002 - None).
VIII- Securities Held to Maturity, Securities Available for Sale and Bank
Originated Loans and Receivables
Securities held to maturity are obtained with the intention of holding till the
maturity of the security, and accordingly, including the funding abilities, the
relevant conditions for this exist. This portfolio includes securities with
fixed or determinable payments and with a fixed maturity, excluding bank
originated loans and receivables.
Securities available for sale include all securities other than bank originated
loans and receivables, securities held to maturity and securities held for
trading.
The marketable securities are initially recognized at cost including the
transaction costs.
Foreign currency denominated financial assets included in the available for sale
securities portfolio (Eurobonds) is stated by translating the cost value to
Turkish lira at The Bank's exchange rates. The differences generated from the
translation is reflected to foreign currency gains and losses account at the
relevant period. Since these securities do not hold a price formed in an active
market and since the fair values of these securities could not be determined
reliably, they are valued at amortized cost by using relevant interest rates as
stated in the articles 8 and 9 of the AAR's Communique No:1, "Accounting
Standards of Financial Instruments." The differences between the cost and the
valued amounts are reflected to the income accrual accounts.
Loans and receivables originated by the Bank are those generated by lending
money and exclude those that are held with the intention of trading or selling
in near future.
Held to maturity securities are remeasured at amortized cost by using original
effective interest rate and reserve for impairment in value is provided, if any.
The interests received from securities held to maturity are recorded as interest
income. There are no profit shares.
There are no financial assets that cannot be classified as securities held to
maturity for two years because of tainting rules.
The Bank classifies securities according to above-mentioned portfolios at the
acquisition date of the related security.
The sale and purchase transactions of the securities held to maturity are
recorded at the delivery dates.
Prior to the effective date of AAR, the Bank had initially recorded marketable
securities held with the intention of not selling till maturity (investment
portfolio), which were given as collateral at cost, and the income accruals of
these securities were calculated by straight line method and reflected to the
financial statements.
IX- Participations
Turkish lira participations which are quoted at the stock exchange are valued at
fair value and any positive difference between fair value price and cost is in
included under shareholders' equity in the financial statements. The others are
valued by means of restating their costs and the capital increases after
deducting the ones generated by means of adding the values accumulated at the
revaluation like funds to the capital of the participations, with the rates
applicable for the relevant dates. A provision is provided when there is a
permanent diminution in value.
X- Subsidiaries
Turkish lira subsidiaries are valued by means of restating their costs and the
capital increases after deducting the ones generated by means of adding the
values accumulated at the revaluation like funds to the capital of the
subsidiaries, with the rates applicable for the relevant dates. Foreign currency
denominated subsidiaries are valued with year-end foreign exchange rates. A
provision is provided when there is a permanent diminution in value.
XI- Originated Loans and Receivables and Provisions for Loan Impairment
The Bank initially records originated loans and receivables at cost, and at the
following periods, in accordance with the AAR, Communique No:1, these loans are
remeasured at amortized cost by means of effective interest rate method. The
taxes, transaction expenses and other expenses paid for the guarantees taken for
the originated loans are taken into consideration while calculating the banks
financing cost and these are reflected to the interest rates of the loans.
Cash loans are recorded in accordance with the regulations stated at the
Communique on the Uniform Chart of Accounts and Its Explanations.
Provision is set for the loans that may be doubtful and the amount is expensed
at the current period. The provisioning criteria for the non-performing loans
are determined by the Bank's management for compensating the probable losses of
the current loan portfolio, by means of evaluating the portfolio for its quality
and risk factors and by means of considering the economical conditions, other
facts and related regulations.
Allowances are computed and reflected in accordance with the Banking Law No.4389
as revised by Law Number 4672 and 4491, Article 3, Sub Article 11 and Article
11, Sub Article 12 published on the Official Gazette No. 24448 dated 30.06.2001
on "Methods and Principles for the Determination of Loans and Other Receivables
to be Reserved for and Allocation of Reserves" amended by Communiques dated
31.01.02 in the current period financial statements. Furthermore, a general
reserve of 0.5% is being provided for the cash loans and other receivables and
0.1 % is provided for non-cash loans. These provisions are reflected to the
statement of income under "Provision and Diminishing in Value Expenses - Special
Provision Expense". The collection made regarding these loans are first deducted
from the principal amount of the loan and the remaining collections are deducted
from interest receivables.
The collections made regarding the current year provision of the above mentioned
loans are deducted from the "Provision for Loans and Other Receivables" account
in the income statement. The collections made related to the previous years'
written-off loans or allowances are recorded under "Other Operating Income"
account and interest incomes are recorded under the "Interest Received from
Non-performing Loans" account.
Release of provision are removed by means of reversing the amount to the "
Provision and Diminishing in Value Expense - Provision Expense" account.
Allowances recorded in the previous periods and lost its necessity in the
current period are credited to "Collections Regarding Previous Year's Expenses"
account.
XII- Goodwill and Other Intangible Fixed Assets
There is no goodwill regarding the participations and subsidiaries.
The intangible fixed assets are reflected with their restated costs in
accordance with inflation accounting and depreciated with straight-line method.
The depreciation rate is 20%. The cost of assets subject to depreciation is
restated after deducting the exchange differences, capitalized financial
expenses and revaluation increases, if any, from the cost of the assets.
Major group classified as other intangible fixed assets by the Bank is
softwares. While determining the depreciation periods of these, the essentials
of General Tax Regulations are taken in to consideration and no special criteria
are used. The useful lives of these assets are determined as 5 years. Softwares
mainly used are developed within the Bank by the Bank's personnel, and the
expenses regarding these are not capitalized. Software is purchased only in
emergency cases and for special projects.
There are no expected changes in the accounting estimates about the depreciation
rate and method and residual values for the current and future periods.
XIII- Tangible Fixed Assets
Buildings are reflected to the financial statements at their restated costs and
reserve for impairment is provided, if any. In accordance with the Communique
No:14, buildings are valued by real estate expertise companies and the expertise
value is higher than the restated costs at March 31, 2003. The straight-line
method for depreciation is used and economical life is accepted to be 50 years.
Other tangible fixed assets are reflected with their restated cost in accordance
with inflation accounting, and depreciated by straight-line depreciation method.
The depreciation rate is 20%. A prorate basis is used for depreciating assets
held less than one year as of the balance sheet date. The leasehold improvements
are depreciated in accordance with the lease period by means of straight-line
method. The annual rates used, which approximate rates based on the estimated
economic lives of the related assets, are as follow:
%
Buildings 2
Motor vehicles 20
Furniture, fixtures and office equipment 20
Leasehold improvements Lease period-not less than 5 years
Gain profit or loss resulting from disposals of the tangible fixed assets are
reflected to the statement of income as the difference between the net proceeds
and net book value.
The repairment costs of the tangible fixed assets are capitalized if the
operation lengthens the economic life of the asset. Otherwise the repairment
costs are expensed. There are no pledge, mortgage or other restrictions on the
tangible fixed assets.
There are no purchase commitments related to the tangible fixed assets.
There are no expected changes in the accounting estimates, which could have a
significant impact on the current and future periods.
XIV- Leasing Transactions
Leasing of fixed assets are recorded in accordance with AAR, Article 7 of the
Communique No:4, "Accounting Standard for Leasing Transactions." In accordance
with the above-mentioned article, the leasing transactions, which consist only
foreign currency liabilities, are translated to Turkish lira with the exchange
rates effective at the transaction dates and they are recorded both as an asset
and a liability. The foreign currency liabilities are translated to Turkish lira
with the Bank's period end exchange rate. The increases resulting from the
differences in the foreign exchange rates are recorded as expense in the
relevant period. Rent payments consist of financing costs generated due to
leasing, and the amount of the leased asset corresponding to the relevant
period. The financing cost resulting from leasing is distributed through the
agreement period to form a fixed interest rate.
In addition to interest expense, the Bank records depreciation expense in each
period for the leased assets. The depreciation rate is determined in accordance
with "Accounting Standard of Tangible Fixed Assets" and the depreciation rate is
20%.
Operating lease expenses are recognized as expense in the income statements in
the periods in which they are incurred.
The Bank has no leasing transactions as lessor.
XV- Provisions and Contingent Liabilities
The provisions and contingent liabilities are determined in accordance with the
Communique No:8 of AAR, except for the general and specific provisions set for
the loans and other receivables. Liabilities generated from previous events are
recorded by the Bank immediately at the estimated amounts.
XVI- Liabilities Regarding Employee Benefits
In accordance with the existing social legislation, the Bank is required to make
lump-sum termination indemnities including retirement and notice payments to
each employee whose employment is terminated due to resignment or for reasons
other than misconduct. The retirement pay is calculated for every working year
within the Bank over the wage for 30 days and the notice pay is determined by
the relevant notice period time calculated over the years worked within the
Bank. In accordance with AAR, Communique No:10, the Bank sets provision for
retirement and notice pay liabilities by taking the actual payment rates for the
previous 5 years into consideration.
The Bank has no employees contracted for determined periods.
As of March 31, 2003 and December 31, 2002, the arithmetical averages of the
actual payments realized for the previous five years are 8.35% and 8.44%
respectively and this forms the base of the provision amount that will be set
for the retirement and notice pay liabilities.
The Bank employees are members of TEB'LILER foundation. The Bank does not have
any liability to this foundation.
There are no liabilities that require additional provisions related to other
employee rights.
XVII- Taxation
Corporate tax
In line with the new tax Law number 4842, published in the Official Gazette
dated April 26, 2003, starting with the current year income, the corporate tax
rate to be applied is 30 % (December 31, 2002 - 33%, including fund share).
Corporate tax is to be paid in a lump sum payment within the specified period
allowed by the law for the declaration of tax.
As long as the Bank does not distribute the yearly income for 2003, there will
not be any withholding taxes with regards to this income.
The addition of current year profit to the share capital will not be regarded as
a profit distribution and thus, will be exempt from any withholding taxes.
The Bank's distribution of profit to "Fully-liable" institutions will also be
exempt from any withholding taxes. The Bank's distribution of profit to real
persons, "semi-liable" institutions, and those institutions that are not liable
and or exempt from both corporation tax and income tax, will be subject to
withholding taxes.
In accordance with the Tax Procedural Code explained above, in every three-month
period the Bank's tax assessment is made and the temporary corporate tax is
calculated over the income generated in the three-month period at a rate of 30%
and paid in cash up to the fifth day of the second month following the period.
The corporate tax provision is recorded under "Provisions and Diminishing in
Value Expenses-Tax Provision" account and expensed at every three month period
end. At the corporate tax payment periods, the cash payments made are deducted
from the tax liability calculated over the yearly income and the remaining
liability is paid in cash.
In accordance with the Tax Procedural Code, the losses presented in the tax
declarations can be deducted from the tax assessments at the current period
within five years.
In Turkey, tax returns are filed during the fourth month following the year-end.
According to existing tax regulations, the tax authorities may examine such
returns and the underlying accounting records within five years.
Deferred tax
Certain income and expense items are taxable in periods different from those in
which they are recognized in the financial statements. Deferred taxes on such
timing differences are calculated and reflected in full in the accompanying
financial statements. The Bank does not compute deferred tax on the effects of
inflation accounting.
As of March 31, 2003 and December 31, 2002, the deferred tax asset is included
in other assets in the accompanying balance sheet and the deferred tax provision
is stated under the tax provision in the accompanying income statement.
XVIII- Additional Explanations on Borrowings
The Bank has not issued any debt securities.
The Bank has not issued convertible bonds. There are no debt securities issued
by the Bank.
XIX- Paid-in Capital and Share Certificates
The Bank does not have any costs related to share issue as of March 31, 2003.
In the General Assembly meeting of the Bank, dated March 27, 2002, it was
decided that the profit for the year 2002, amounting TL 18,514 (in equivalent
purchasing power as of December 31, 2002 ) will be distributed to the
shareholders after providing the legal reserves, which will amount to 276
(Nominal full TL) of dividend for every 1,000 TL nominal shares owned by each
shareholder.
XX- Acceptances
Acceptances are realized simultaneously with the payment dates of the clients
and they are presented as commitments in off-balance sheet accounts.
There are no acceptances presented as liabilities against any assets.
XXI- Government Incentives
There are no government incentives utilized by the Bank.
XXII- Securities at Custody
Securities at custody held by the Bank on behalf of clients are not reflected to
the financial statements since they are not Bank's assets.
XXIII- Impairment of Assets
At every balance sheet date, the evidence on impairment in value of assets is
evaluated objectively for existence. When an evidence regarding impairment in
value exists, the market value of the asset is determined. The difference
between book and net realizable values of the asset is recorded as provision for
impairment in the balance sheet and as an expense in the income statement.
XXIV- Segment Reporting
Segment reporting will be made effective January 1, 2004.
XXV- Other Matters
Explanation for convenience translation to English
The accounting principles used in the preparation of the accompanying financial
statements differ from International Financial Reporting Standards (IFRS) and so
far as such differences apply to the financial statements of the Bank they
relate mainly, but not limited, to the format of financial statements and
disclosure requirements, accounting for deferred taxes and reserve for
retirement pay liabilities. The effects of the differences between these
accounting principles and the accounting principles generally accepted in the
countries in which the accompanying financial statements are to be used and IFRS
have not been quantified in the accompanying financial statements. Accordingly,
the accompanying financial statements are not intended to present the financial
position and results of operations in accordance with accounting principles
generally accepted in the countries of users of the financial statements and
IFRS. The Bank's consolidated financial statements prepared in accordance with
the accounting principles and standards that are based on the Article 13 of the
Banking Law number 4389 will be issued separately.
There are no other matters required need to be disclosed.
SECTION FOUR
INFORMATION ON FINANCIAL STRUCTURE
I- Capital Adequacy Standard Ratio
The method used for risk measurement for capital adequacy standard ratio is
performed in accordance with the Communique on "Measurement and Assessment of
Banks Capital Adequacies ", which was published on January 31, 2002 in the
Official Gazette numbered 24657. As of March 31, 2003, the Bank's capital
adequacy ratio is % 14.04 (December 31, 2002 - %15.40).
In the computation of capital adequacy standard ratio, information prepared in
accordance with statutory accounting requirements are used. Additionally, the
market risk amount is calculated in accordance with the communique on the
"Internal Control and Risk Management Systems of the Banks" and is taken in to
consideration in the capital adequacy standard ratio calculation
The values deducted from the capital in the shareholders' equity computation are
not considered while calculating risk-weighted assets, non-cash loans and
contingent liabilities. Assets subject to depreciation and depletion among
risk-weighted assets are included in the calculations over their net book values
after the relative depreciations and provisions are deducted.
When calculating the basic amounts subject to credit risk regarding the
transactions on the non-cash loans, the net receivable amount from the counter
parties found by means of deducting the provision amount set in accordance with
the "Communique on Methods and Principles for the Determination of Loans and
Other Receivables to be Reserved for and Allocation of Reserves" is multiplied
by the rates presented at the Clause 1, Article 21 of the "Communique on
Regulations on the Establishment and Operations of Banks", and included in the
related risk group and weighted by the related group's risk.
Receivables from counter parties generated from foreign currency and interest
rate transactions are included in the related risk group at the loan conversion
rates stated in Clause 2, Article 21 of the "Communique on Regulations on the
Establishment and Operations of Banks" and weighted for a second time by the
weight of the related risk group.
Information related to the capital adequacy ratio:
Risk Weight
0% 20% 50% 100%
Risk Weighted Assets, Liabilities and Non-Cash Loans
Balance Sheet items (Net) 868,564 239,135 21,832 854,524
Cash 84,554 - - -
Due from banks 245,994 239,135 - 711
Interbank money market placements 347,554 - - -
Receivables from reverse repo transactions - - - -
Reserve deposits 135,513 - - -
Special finance houses - - - -
Loans 39,794 - 21,832 800,690
Loans under follow-up (Net) - - - 5,115
Subsidiaries, associates and investments held to maturity - - - -
Miscellaneous receivables - - - 2,108
Marketable securities held to maturity (Net) - - - -
Advances for assets acquired by financial leasing - - - -
Financial lease receivables - - - -
Leased assets (Net) - - - -
Fixed assets (Net) - - - 34,057
Other assets 15,155 - - 11,843
Off balance sheet items 261,360 384,105 232,489 52,177
Guarantees and pledges 19,088 379,600 58,641 29,729
Commitments 239,710 - 173,757 -
Other off balance sheet items - - - -
Transactions related with derivative financial - - - 4,743
instruments
Interest and income accruals 2,562 4,505 - 17,705
Non risk weighted accounts - - - -
1,129,924 623,240 254,230 906,701
Total Risk Weighted Assets - 124,648 127,115 906,701
Summary information related to the capital adequacy ratio:
Current Prior
Period Period
Total Risk Weighted Assets (*) 1,196,439 1,239,473
Shareholders' Equity 167,998 190,865
Shareholders' Equity / Total risk weighted assets (CAR (%)) 14.04 15.40
(*) As of March 31, 2003 the amount includes TL 37,975 TL (2002 - TL
22,114) of market risk amount.
Information related to the shareholders' equity components :
Current Prior Period
Period
MAIN CAPITAL
Paid-in Capital 55,125 55,125
Nominal capital 55,125 55,125
Capital commitments (-) - -
Effect on Inflation Accounting on Share Capital 211,329 211,329
Share Premium - -
Legal Reserves 2,409 -
First legal reserve (Turkish Commercial Code 466/1) 2,409 -
Second legal reserve (Turkish Commercial Code 466/2) - -
Other legal reserve per special legislation - -
Statute Reserves - -
Extraordinary reserves - -
Reserves allocated by the General Assembly - -
Retained earnings - -
Accumulated loss - -
Foreign currency share capital exchange difference - -
Profit 6,679 20,809
Current period profit 4,385 20,809
Prior period profit 2,294 -
Loss (-) - -
Current period loss - -
Prior period loss - -
Total Main Capital 275,542 287,263
SUPPLEMENTARY CAPITAL - -
Revaluation Fund - -
Furniture, fixture and vehicles - -
Buildings - -
Profit on sale of associates, subsidiaries and buildings to be transferred to share - -
capital
Revaluation fund of leasehold improvement - -
Increase in the Value of Revaluation Fund - -
Foreign Exchange Differences - -
General Reserves 6,470 6,848
Provisions for Possible Losses - -
Subordinated Loans 25,501 27,644
Marketable Securities and Investment Securities Value Increase Fund 213 226
Associates and subsidiaries 213 226
Available for sale securities - -
Structured positions - -
Total Supplementary Capital 32,184 34,718
TIER III CAPITAL - -
CAPITAL 307,726 321,981
DEDUCTIONS FROM THE CAPITAL 139,728 131,116
Investments in unconsolidated financial companies whose main activities are money 129,363 120,054
and capital markets, insurance and that operate with licenses provided in
accordance with special laws
Leasehold improvements 6,391 7,172
Start-up costs - -
Prepaid expenses 3,974 3,890
The negative difference between the market values and the carrying amounts for
unconsolidated investments, subsidiaries, other investments and fixed assets
- -
Subordinated loans given to other banks which operate in Turkey - -
Goodwill (Net) - -
Capitalized expenses - -
Total Shareholder's Equity 167,998 190,865
II- Market Risk
The Bank has determined market risk management operations and has taken the
necessary precautions in order to hedge market risk within its financial risk
management purposes, in accordance with the Communique on "Internal Control and
Risk Management Systems of Banks" announced in the Official Gazette dated
February 8, 2001.
The interest rate and exchange rate risks of the financial positions taken by
the Bank related to balance sheet and off-balance sheet accounts are measured
and while calculating the capital adequacy, the amount subject to VAR is taken
into consideration by the standard method. Scenario analysis and stress tests
are used additionally in market risk computations.
In order to measure the market risk of the Bank, the Board of Directors has
determined risk management strategies in accordance with the proposals of the
Top Management Risk Committee and these strategies are forced to be followed up
periodically. The Board of Directors evaluates the basic risks faced and
determines limitations accordingly. The limits are revised periodically.
Additionally the Board of Directors has urged the risk management group and the
top management to take necessary precautions to consider, evaluate, control and
to control the variety of risks the Bank faces.
Amount
Capital to be employed for interest rate risk - standard method 2,386
Capital to be employed for general market risk 2,386
Capital to be employed for specific risk -
Capital to be employed for options subject to interest rate risk -
Capital to be employed for common stock position risk - Standard method -
Capital to be employed for general market risk -
Capital to be employed for specific risk -
Capital to be employed for options subject to common stock position risk -
Capital to be employed for currency risk - Standard method 652
Capital liability 652
Capital to be employed for options subject to currency risk -
Total Value-at-risk (VAR)-Internal Model -
Total capital to be employed for market risk 3,038
Amount subject to market risk 37,975
III- Foreign Currency Risk
Foreign currency risk indicates the possibilities of the potential losses that
banks are subject to due to the exchange rate movements in the market. While
calculating the share capital requirement, all foreign currency assets,
liabilities and forward transactions of the Bank are taken into account. Net
short and long position of Turkish Lira equivalent of each foreign currency is
calculated. The value, which will be a base for calculating the share capital
requirement, is computed by taking the higher absolute value of the position by
adding to absolute net gold position. Share capital requirement is computed over
of this amount. The Board of Directors sets limits for the positions, which are
followed up daily. Additionally, possible value changes in the existing or
possible foreign currency positions are observed together with the follow-up of
the foreign currency risk in accordance with the provisions of the "Communique
on Internal Control and Risk Management Systems of Banks".
As an element of the Bank's risk management strategies, foreign currency
liabilities are hedged against exchange rate risk by derivative instruments.
The Board of Directors of the Bank determines the short position limits that the
Bank can hold in accordance with the present legal limitations. The Treasury
Department of the Bank is responsible for the management of Turkish Lira or
foreign currency price, liquidity and affordability risks that could occur in
the domestic and international markets. The Risk Control Department continuously
controls risk and risk related transactions occurring in the money markets and
prepares weekly reports for the Bank's Asset-Liability Committee. The related
principles and limitations of the counterparties are determined by the Loan
Committee. The limits concerning the maturity structure of the foreign currency
transactions and interest rates are examined by the Asset-Liability Committee.
As of March 31, 2003, the Bank's net long position is TL 9,599 (December 31,
2002 - TL 735) resulting from short position amounting to TL 34,127 (December
31, 2002 - TL 41,994) on the balance sheet and long position amounting to TL
43,726 (December 31, 2002 - TL 41,259) on the off-balance sheet.
The announced current foreign exchange buying rates of the Bank at the balance
sheet date and the previous five working days are as follows:
24/3/03 25/3/03 26/3/03 27/3/03 28/3/03 31/3/03
USD 1,746,390 1,734,240 1,700,066 1,705,559 1,708,213 1,700,073
CHF 1,257,724 1,258,414 1,226,131 1,234,910 1,239,168 1,251,357
GBP 2,744,221 2,733,105 2,672,620 2,684,835 2,669,206 2,682,487
JPY 14,445 14,454 14,104 14,207 14,197 14,289
EUR 1,857,985 1,855,637 1,811,081 1,829,724 1,833,254 1,850,359
The simple arithmetical average of the major current foreign exchange buying
rates of the Bank for the thirty days before the balance sheet date is as
follows:
Monthly Average
FX rate
USD 1,657,506
CHF 1,215,892
GBP 2,621,405
JPY 13,936
EUR 1,789,663
Information on the foreign currency risk of the Bank:
Current Period EUR USD YEN OTHER FC TOTAL
Assets
Cash (cash in vault, foreign currency cash, money in
transit, cheques purchased) and balances with the
Central Bank of Turkey 25,735 287,800 41 3,187 316,763
Due from other banks and financial institutions 13,346 166,910 244 23,377 203,877
Trading securities (**) 494 18,738 - 4,422 23,654
Investment securities available-for-sale - 43,950 - - 43,950
Loans (**) 234,114 340,281 - 17,425 591,820
Investments in subsidiaries and participations 56,343 - - - 56,343
Investment securities held-to-maturity - - - - -
Property and equipment - - - - -
Goodwill - - - - -
Other assets 23,357 213,306 - 628 237,291
Total Assets 353,389 1,070,985 285 49,039 1,473,698
Liabilities
Bank deposits 4,636 5,918 3 16,774 27,331
Foreign currency deposits (*) 230,941 872,865 328 47,927 1,152,061
Funds provided from other financial institutions 2,583 289,027 - - 291,610
Marketable securities issued - - - - -
Miscellaneous payables 14,198 3,368 - - 17,566
Other liabilities 3,731 14,720 - 806 19,257
Total liabilities 256,089 1,185,898 331 65,507 1,507,825
Net Balance Sheet Position 97,300 (114,913) (46) (16,468) (34,127)
Net Off-Balance Sheet Position (96,002) 119,204 - 20,525 43,727
Financial derivative assets 162,711 312,216 - 41,263 516,190
Financial derivative liabilities 258,713 193,012 - 20,738 472,463
Non-cash loans (***) 179,934 372,224 5,754 22,337 580,249
Prior Period
Total Assets 399,725 1,292,613 20,834 95,809 1,808,981
Total Liabilities 298,824 1,466,245 228 85,678 1,850,975
Net Balance Sheet Position 100,901 (173,632) 20,606 10,131 (41,994)
Net Off-Balance Sheet Position (99,813) 170,083 (20,324) (8,687) 41,259
Non-cash loans 185,919 395,111 7,518 25,120 613,668
(*) Gold account deposits amounting to TL 15,927 are included in the
foreign currency deposits.
(**) Foreign currency indexed government bonds and treasury bills amounting
to TL 232 are included in the trading portfolio and foreign currency indexed
loans amounting to TL 79,991 are included in the loan portfolio.
(***) There are no effects on the net off-balance sheet position.
IV- Interest Rate Risk
Interest rate risk shows the loss probability related to the changes in the
interest rates depending on the Bank's position, and it is managed by the
Treasury Department. The interest rate sensitivity of assets, liabilities and
off-balance sheet items related to this risk are measured by using the standard
method. The first step at calculation of interest rate risk, is to place the
instruments subject to interest rate risk in the appropriate one of the 13
maturity sections according to the remaining time to maturity or to the
repricing. At the second step, the instruments with variety of maturities are
weighted according to their risks for reflecting the interest rate risk
volatilities that match their maturities.
The first priority of the Bank's risk management is to protect from interest
rate volatility. All types of sensitivity analysis performed within the context
is calculated by the risk management and reported to the Asset-Liability
Committee.
Work is performed regarding interest income according to the macro economical
indicators in the Bank's budget estimations and the effects of the market
interest fluctuations on the financial position and cash flow are purified at
the maximum level possible by means of target revisions.
The Bank management follows the market interest rates daily and determines the
interest rates of the Bank when necessary.
Since the Bank does not permit or imposes limits, on maturity mismatches it is
not expected that the Bank will face a significant interest rate risk.
Information related to the interest rate sensitivity of assets, liabilities and
off-balance sheet items based on repricing dates):
Up to 1 1-3 3-6 6-12 1 Year and
Months Months Months Months Over Demand Total
Current Period
Assets
Cash (cash in vault, foreign
currency cash, money in transit,
cheques purchased) and balances
with the Central Bank of Turkey 381,507 - - - - 84,554 466,061
Due from banks and other
financial institutions 473,093 4,000 10,500 3,596 - 85,753 576,942
Trading securities 5,203 11,776 2,322 16,530 131 - 35,962
Securities available-for-sale - - 36,014 7,936 - 9 43,959
Loans 281,993 246,702 227,434 68,606 48,039 5,115 877,889
Securities held-to-maturity 54 38,255 - 275 - - 38,584
Other assets 16,159 5,147 3,311 5,766 877 202,354 233,614
Total Assets 1,158,009 305,880 279,581 102,709 49,047 377,785 2,273,011
Liabilities
Bank deposits 47,766 2,256 - - - - 50,022
Other deposits 1,285,428 152,902 14,604 13,490 9 - 1,466,433
Miscellaneous payables - - - - - 45,141 45,141
Marketable securities issued - - - - - - -
Funds provided from other 107,150 183,960 20,190 - - - 311,300
financial institutions
Other liabilities 26,436 3842 2,135 1975 6,238 359,489 400,115
Total Liabilities 1,466,780 342,960 36,929 15,465 6,247 404,630 2,273,011
Balance Sheet Interest (308,771) (37,080) 242,652 87,244 42,800 (26,845) -
Sensitivity Gap
Off Balance Sheet Interest - - - - - - -
Sensitivity Gap
Total Interest Sensitivity Gap (308,771) (37,080) 242,652 87,244 42,800 (26,845) -
The other asset line at the without interest column consists of TL 40,448 amount
tangible fixed assets, TL 3,280 of intangible fixed assets, TL 6,280 of
participations and TL 123,083 of subsidiaries and the other liability line
consists equity total amounting to TL 275,755.
Up to 1 1-3 3-6 6-12 1 Year Demand Total
Month Month Months Months and Over
Prior Period
Assets
Cash (cash in vault, foreign
currency cash, money in transit,
cheques purchased) and balances with
the Central Bank of Turkey 533,538 - - - - 97,688 631,226
Due from banks and other financial
institutions 727,650 12,364 8,991 2,880 - 72,202 824,087
Trading securities 2,841 14,224 6,979 6,614 432 306 31,396
Investment securities - 18,945 - - - 10 18,955
available-for-sale
Loans 367,689 180,828 240,299 60,568 46,297 - 895,681
Investment securities 233 40,855 - - - - 41,088
held-to-maturity
Other assets - - - - - 224,888 224,888
Total Assets 1,631,951 267,216 256,269 70,062 46,729 395,094 2,667,321
Liabilities
Banks deposits 66,067 184 1,124 - - - 67,375
Other deposits 1,672,085 134,077 11,584 15,570 444 - 1,833,760
Miscellaneous payables - - - - - 39,885 39,885
Marketable securities issued - - - - - - -
Funds provided from other financial 4,586 206,373 19,933 92,390 - - 323,282
institutions
Other liabilities 123 391 632 1,061 5,378 395,434 403,019
Total Liabilities 1,742,861 341,025 33,273 109,021 5,822 435,319 2,667,321
On Balance Sheet Interest (110,910) (73,809) 222,996 (38,959) 40,907 (40,225) -
Sensitivity Gap
Off Balance Sheet Interest - - - - - - -
Sensitivity Gap
Total Interest Sensitivity Gap (110,910) (73,809) 222,996 (38,959) 40,907 (40,225) -
Average interest rates applied to monetary financial instruments:
EURO USD Yen TL
% % % %
Current Period
Assets
Cash (cash in vault, foreign currency cash, money in transit, cheques purchased) 1.23 0.60 - 25.00
and balances with the Central Bank of Turkey
Due from banks and other financial institutions - 2.82 - 45.12
Trading securities 4.37 3.08 - 77.87
Securities available-for-sale - 7.53 - -
Loans 5.67 5.74 - 53.60
Securities held-to-maturity - - - 58.18
Liabilities
Bank deposits 4.28 2.73 - 41.58
Other deposits 2.85 2.83 - 34.45
Miscellaneous payables - - - -
Marketable securities issued - - - -
Funds provided from other financial institutions 5.35 3.00 - 43.31
V- Liquidity Risk
Liquidity risk occurs when there is not sufficient amount of cash or cash flows
to fulfill the cash outflows completely and on time, resulting from the unstable
cash inflows.
Liquidity risk may occur when the market penetration is not enough, when the
open positions cannot be closed urgently with a suitable price and sufficient
amount due to barriers and break-ups at the markets.
The Bank's policy is to establish a liquid asset structure that can afford all
kinds of liabilities by liquid sources. In this scope liquidity problem does not
happen at any period. The Board of Directors of the Bank continuously determines
the liquidity ratios and related standards, and controls them, in order to keep
this structure.
There is a system worked on to apply international measurement methods. However,
according to the general policies of the Bank, the adaptation of the assets,
liabilities, the interest rates to the payments are always established within
the asset liability management strategies. A positive difference is tried to be
established between the yields of TL and foreign currency assets and liabilities
at the balance sheet and their costs. According to this strategy, the Bank pays
special attention not to take maturity risk, and no banking service is marketed
when the price is lower than the financing cost.
When the funding and liquidity sources are considered, the Bank covers majority
of its liquidity need by deposits, and in addition to this source, it makes use
of prefinancing and syndication products to generate additional sources.
Generally the Bank does not prefer to utilize liquidity from interbank money
markets and is in a net lender position in interbank money markets.
Presentation of assets and liabilities according to their remaining maturities :
1-3 Months 3-6 Months 6-12 Months 1 Year and Total
Current Period Demand (**) (*) Over
Assets
Cash (cash in vault, 466,061 466,061
foreign currency cash, - - - -
money in transit,
cheques purchased) and
Balances with the
Central Bank of Turkey
Due from banks and other 558,846 4,000 10,500 3,596 - 576,942
financial institutions
Trading securities 4,525 1,433 1,648 24,764 3,592 35,962
Securities 9 - - 7,936 36,014 43,959
available-for-sale
Loans 287,108 246,702 227,434 68,606 48,039 877,889
Securities 54 163 - 38,367 - 38,584
held-to-maturity
Other assets 26,293 19,990 3,311 5,766 877 233,614
Total Assets 1,342,896 272,288 242,893 149,035 88,522 2,273,011
Liabilities
Bank deposits 47,767 2,255 - - - 50,022
Other deposits 1,285,428 152,902 14,604 13,490 9 1,466,433
Funds provided from 47,509 14,016 15,508 170,007 64,260 311,300
other financial
institutions
Marketable securities - - - - - -
issued
Miscellaneous payables 45,141 - - - - 45,141
Other liabilities 103,423 11,347 2,135 1,975 281,235 400,115
Total Liabilities 1,529,268 180,520 32,247 185,472 345,504 2,273,011
Net Liquidity Gap (186,372) 91,768 210,646 (36,437) (256,982) -
Prior Period
Total Assets 1,812,439 220,517 273,289 78,814 106,943 2,667,321
Total Liabilities 1,882,608 162,078 57,664 201,922 363,049 2,667,321
Net Liquidity Gap (70,169) 58,439 215,625 (123,108) (256,106) -
(*) The maturity of up to 1 month of Interbank funds sold amounting to TL
347,554, loans amounting to TL 281,993, and domestic and foreign banks
placements amounting to TL 125,539 are shown in the demand column. Furthermore,
demand deposits amounting to TL 797,355 is included in the other deposits and
shown at the demand columns.
(**) Total column includes other assets amounting to TL 177,377 consists of
TL 129,363 of subsidiaries and participations, 40,448 TL of tangible assets,
3,280 TL of intangible fixed assets, 3,974 TL of prepaid expenses and 312 TL of
gold that are not taken in to consideration at the maturity distribution. Other
liabilities which matures up to 1 year and over includes shareholders' equity
amounting to TL 275,755.
SECTION FIVE
FOOTNOTES AND EXPLANATIONS ON
UNCONSOLIDATED FINANCIAL STATEMENTS
I- Footnotes And Explanations Related to the Assets
1. Information related to the account of the Central Bank of Turkey:
Current Period Prior Period
Demand Unrestricted Amount 5,958 16,634
Time Unrestricted Amount 240,036 368,650
Total 245,994 385,284
2. Information about trading portfolio:
a) Trading securities given as collateral or blocked: None.
b) Trading securities subject to repurchase agreements:
Current Prior
Period Period
TL FC TL FC
Government bonds 10,061 - 18,799 -
Treasury bills 524 - 6,373 -
Other debt securities - - - -
Bank bonds and bank guaranteed bonds - - - -
Asset backed securities - - - -
Other - - - -
Total 10,585 - 25,172 -
3. Information on available for sale portfolio:
a) Main types of available for sale securities: public sector debt
securities, and other marketable securities and share certificates.
b) Information on available for sale portfolio:
Current Period Prior Period
Debt securities 43,950 18,945
Quoted in a stock exchange 7,936 -
Not quoted 36,014 18,945
Share certificates 9 10
Quoted in a stock exchange - -
Not quoted 9 10
Provision for impairment (-) - -
Total 43,959 18,955
These financial assets are classified according to their acquisition purposes as
of October 1, 2002 in accordance with the Communique No:1 of the ARR.
Accordingly information on prior period cannot be presented.
c) Available for sale securities given as collateral or blocked: None.
d) Information on investment securities available-for-sale given as
collateral or blocked : None
e) Information on investment securities available-for-sale subject to
repurchase agreements: None.
4. Information on loans :
a) Information on all types of loans and advances given to shareholders and
employees of the Bank:
Current Period Prior Period
Cash Loans Non-Cash Cash Loans Non-Cash
Loans Loans
Direct loans granted to shareholders 601 886 668 7,564
Corporate shareholders 601 886 668 7,564
Real person shareholders - - - -
Indirect loans granted to - - - -
shareholders
Loans granted to employees 776 - 846 -
Total 1,377 886 1,514 7,564
b) Information about the first and second group loans and other receivables
including loans that have been restructured or rescheduled:
Loans and Other Receivables Under
Close Monitoring
Standard Loans and Other Receivables
Loans and Other Restructured or Loans and Other Restructured or
Receivables Rescheduled Receivables Rescheduled
Cash Loans
Non-specialized loans 866,738 - 698 5,338
Discount notes 9,804 - - -
Export loans 494,109 - - -
Import loans - - - -
Loans given to financial sector 10,458 - - -
International loans 9,464 - - -
Consumer loans 28,152 - - -
Credit cards 13,940 - - -
Precious metals loans 14,624 - 698 -
Other 286,187 - - 5,338
Specialized loans - - - -
Other receivables - - - -
Total 866,738 - 698 5,338
c) Information on consumer loans :
Medium and Long Term Interest Income Accrual
Short Term Total
Consumer loans-TL 7,231 5,222 12,453 322
Real estate loans 187 1,062 1,249 29
Automotive loans 1,142 4,059 5,201 110
Consumer loans - - -
Personnel loans 618 - 618 20
Other consumer loans 5,284 101 5,385 163
Consumer loans- Indexed to FC 3,986 11,713 15,699 89
Real estate loans - 2,052 2,052 13
Automotive loans 2,988 9,592 12,580 70
Consumer loans - - - -
Personnel loan - - - -
Other consumer loans 998 69 1,067 6
Credit cards 13,940 - 13,940 -
Total Consumer Loans 25,157 16,935 42,092 411
d) Domestic and foreign loans:
Current Period Prior Period
Domestic loans 863,310 881,199
Foreign loans 9,464 14,482
Total 872,774 895,681
e) Loans granted to subsidiaries and investments:
Current Period Prior Period
Direct loans granted to subsidiaries and investments 100 207
Indirect loans granted to subsidiaries and investments - -
Total 100 207
f) Specific provisions provided against loans:
Current Period Prior Period
Specific provisions
Loans and receivables with limited collectibility 49 71
Loans and receivables with doubtful collectibility 270 202
Uncollectible loans and receivables 14,561 16,867
Total 14,880 17,140
g) Information on loans under follow-up account (Net) :
g.1) Information on loans and other receivables included in loans under
follow-up account which are restructured or rescheduled: None.
g.2) The movement of loans under follow-up:
III. Group: IV. Group: V. Group
Loans and
receivables with
Loans and doubtful
receivables with colectibility
limited Uncollectible
collectibility loans and
receivables
Prior period end balance 1,025 403 21,289
Additions (+) 267 - 394
Transfers from other categories of loans under - 875 97
follow-up (+)
Transfers to other categories of loans under 875 97 -
follow-up (-)
Collections (-) 50 15 799
Write-offs (-) - - 14
Index difference (-) 113 44 2,348
Current period end balance 254 1,122 18,619
Specific provision (-) 49 270 14,561
Net Balances on Balance Sheet 205 852 4,058
g.3) Information on foreign currency loans and other receivables under
follow-up: None.
h) Liquidation policies for the uncollectible loans and other receivables :
The loans and other receivables decided to be uncollectible are written off from
the assets according to the Tax Law by the decision of the top management in
accordance with the "Communique on Methods and Principles for the Determination
of Loans and Other Receivables to be Reserved for and Allocation of Reserves"
related to the clause 12 of article 11 and clause 11 of the article 3 of the
Bank Law 4389 changed by the laws 4672 and 4491 and announced at the Official
Gazette numbered 24448 and dated June 30,2001.
5. Information on held to maturity portfolio (Net) :
a) Information on held to maturity portfolio:
Current Period Prior Period
Debt securities 38,584 41,088
Quoted in a stock exchange 38,584 41,088
Not quoted - -
Provision for impairment (-) - -
Total 38,584 41,088
b) Movement of Held to Maturity Portfolio :
Current Period Prior Period
Beginning balance 41,088 97,414
Effect of inflation (-) 4,531 22,958
Foreign currency differences on monetary assets - 5,939
Purchases during year 45,937 41,088
Disposals through sales and redemptions (43,910) (80,396)
Impairment provision - -
Closing Balances 38,584 41,088
c.1) Information on accounts in which investment securities held-to-maturity recorded:
Current Period Prior Period
Historical Cost Valuation Historical Cost Valuation
TL FC TL FC TL FC TL FC
Held to Maturity Portfolio
Given as collateral or blocked 38,584 - 39,440 - 41,088 - 41,828 -
Subject to repo transactions - - - - - - - -
Held for structural position - - - - - - - -
Receivables from securities lending - - - - - - - -
Collaterals on securities lending - - - - - - - -
Closing Balances 38,584 - 39,440 - 41,088 - 41,828 -
Other than the above items, there are no held to maturity securities which are
not given as collateral.
c.2) Marketable securities held to maturity given as collateral consist of
public sector debt securities of TL 38,584, given as collateral for statutory
requirements.
Securities held-to-maturity given as collateral or blocked:
Current Prior Period
Period
TL FC TL FC
Share certificates - - - -
Bonds and similar investment securities 38,584 - 41,088 -
Other - - - -
Total 38,584 - 41,088 -
c.3) Securities held-to-maturity subject to repurchase agreements : None.
c.4) Securities held-to-maturity held for structural position: None.
6. Information on Participations (Net):
a.1) Information on participations :
Current Period Prior Period
Balance at the beginning of the period 6,342 5,193
Movements during the period - 1,149
Purchases - 755
Free shares obtained profit from current year's share - 437
Dividends from current year income - -
Sales - -
Revaluation increase (62) (43)
Provision for impairment - -
Balance at the end of the period 6,280 6,342
Capital commitments - -
Share percentage at the end of the period (%)
a.2) Valuation of participations:
Current Period Prior Period
Valuation with cost 5,980 5,980
Valuation with fair value 300 362
Valuation with equity method - -
Total 6,280 6,342
a.3) Participations which are quoted to a stock exchange:
Current Period Prior Period
Other Financial Participation / Varlik Yatirim Ortakligi A.S. 300 362
Total 300 362
a.4) Information related to participations:
Bank's share percentage-If
different voting
Address (City / percentage(%) Bank's risk group
Country)) share percentage (%)
Description
TEB Sigorta A.S. Istanbul /Turkey 50.00 50.00
Varlik Yatirim Ortakligi A.S. Istanbul /Turkey 24.40 34.00
Information on participations as presented in table a.4:
Income from
Marketable
Securities Prior Period
Portfolio (*) Profit / Loss
Shareholders'Equity(*) Total Fixed Interest Current (*) Fair
Assets(*) Income (*) Period Profit Value (*)
Total / Loss (*)
Assets
23,319 4,836 425 124 60 (2,780) 582 -
1,296 1,276 6 - 56 (95) 55 1,230
(*) Financial statements of Varlik Yatirim Ortakligi A.S. have been prepared in
accordance with the incumbent Capital Market Board legislation. Financial
statements of TEB Sigorta have been prepared in accordance with principles
stated in the Insurance Control Law. Current period information is expressed in
the equivalent purchasing power at March 31, 2003, while prior period
information are historical and are expressed with nominal figures at December
31, 2002.
a.5) Information on investments which are sold in current period :
None.
a.6) Investments purchased in the current period: None.
7. Information on Subsidiaries (Net):
a) Information on subsidiaries:
a.1) Information on subsidiaries:
Current Period Prior Period
Balance at the beginning of the period 113,712 101,262
Movements during the period 9,371 12,450
Purchases - 7,728
Free shares obtained profit from current year's share 11,458 3,698
Dividends from current year income - -
Sales - -
Revaluation increase (*) (2,087) 1,024
Provision for impairment - -
Balance at the end of the period 123,083 113,712
Capital commitments - -
Share percentage at the end of the period (%)
(*) The exchange income generated from the difference between the
devaluation and inflation of the foreign subsidiaries.
a.2) Valuation of subsidiaries:
Subsidiaries denominated in Turkish Lira are reflected by restating their costs
and the capital increases after deducting the ones generated by means of adding
the values accumulated at the revalution like funds to the capital of the
subsidiaries with the conversion factors applicable for the relevant dates. When
there is a permanent diminution in value of the subsidiaries then a provision is
set. Subsidiaries denominated in foreign currency are translated into Turkish
Lira by applying the exchange rates prevailing at balance sheet dates.
Current Prior
Period Period
Valuation with cost 123,083 113,712
Valuation with fair value - -
Valuation with equity method - -
a.3) Subsidiaries which are quoted to a stock exchange: None.
a.4) Information on subsidiaries:
Bank's share Bank's risk group
percentage-If different share percentage
voting percentage(%) (%)
Description Address(City/ Country)
The Economy Bank N.V. Netherlands 100.00 100.00
Petek International Holdings B.V. Netherlands 100.00 100.00
TEB Yatirim Menkul Degerler A.S. Istanbul/Turkey 74.80 91.81
TEB Finansal Kiralama A.S. Istanbul/Turkey 68.76 75.18
TEB Kiymetli Madenler A.S. Istanbul/Turkey 66.00 75.00
TEB Factoring A.S. Istanbul/Turkey 65.80 73.20
TEB Portfoy Yonetimi A.S. Istanbul/Turkey 55.89 88.61
Information on participations as presented in table a.4:
Income from
Marketable
Securities Prior Period
Portfolio (*) Profit / Loss
Shareholders'Equity(*) Total Fixed Interest Current (*) Fair
Assets(*) Income (*) Period Profit Value (*)
Total / Loss (*)
Assets
1,239,846 83,633 759 2,354 790 1,020 8,112 -
1,886 1,886 - - - 1,414 3,262 -
16,777 14,209 408 277 525 318 2,983 -
154,935 38,623 123,011 279 63 6,546 4,141 -
278 270 - - - (1) 40 -
64,982 7,952 194 3,440 - 1,274 500 -
4,397 3,951 646 225 815 365 876 -
a.5) Information on the subsidiaries that were disposed in current period:
None.
a.6) Information on the subsidiaries purchased in current period: None.
8. Information on financial lease receivables (Net): None.
9. Explanations related to interest and income accruals :
a) Information about accrued interest and income receivables:
Current Prior
Period Period
Accrued interest and income receivables TL FC TL FC
Interest accruals - due 129 2 256 -
Interest accruals - not due 10,955 3,147 10,220 2,947
Loan commissions and other income accruals - due - - - -
Loan commissions and other income accruals - not 15 1 12 1
due
Total 11,099 3,150 10,489 2,948
b) Information on other interest and income accruals :
Current Period Prior Period
Other interest and income accruals TL FC TL FC
Trading securities 4,460 242 3,763 18
Securities available for sale - 393 - 401
Securities held to maturity 856 - 740 -
Interest accruals of reverse repo transactions - - - -
Interest accruals of reserve deposits 1,222 221 1,034 278
Income accruals of financial derivative instruments 3,452 - 4,939 -
Interest and income accruals - - - -
Income accrual of foreign exchange gains 3,452 - 4,939 -
Income accruals of financial lease income - - - -
Other 5,170 458 6,078 142
Total 15,160 1,314 16,554 839
10. Information on other assets:
a) Information on prepaid expenses, taxes and similar items :
Current Period Prior Period
Deferred tax 2,389 2,286
Assets held for sale - -
Advances given 210 208
Prepaid rent expenses 419 423
Transaction cost related to financial liabilities 1,427 2,310
Prepaid taxes 14,843 10,249
Other 8,404 7,696
Total 27,692 23,172
b) Other assets and liabilities which exceed 10 % of the balance sheet total
(excluding off-balance sheet commitments) and breakdown of these which
constitute at least 20% of grand total: None
II- Footnotes And Explanations Related to the Liabilities
1. a) Information on maturity structure of deposits:
a.1) Current period :
Demand 7 day Call Up to 1 1-3 Month 3-6 Month 6 Month-1 1 Year and
Accounts month Year over
Saving deposits 11,291 - 69,338 50,031 18,080 3,487 12,935
Foreign currency 379,079 - 434,965 287,143 26,471 8,079 397
deposits
Residents in Turkey 362,071 - 426,903 279,644 25,516 6,671 378
Residents abroad 17,008 - 8,062 7,499 955 1,408 19
Public sector 11,283 - - - - - -
deposits
Commercial deposits 45,702 - 54,160 5,029 220 18 13
Other institutions 31,171 - 1,522 82 9 1 -
deposits
Precious metals 9,548 - 4,582 367 - - 1,430
deposits
Interbank deposits 10,825 - 24,751 13,214 - - 1,232
Central Bank of - - - - - - -
Turkey
Domestic Banks 6,300 - - 2,000 - - 1,232
Foreign Banks 4,525 - 24,751 11,214 - - -
Special finance - - - - - - -
houses
Other - - - - - - -
Total 498,899 - 589,318 355,866 44,780 11,585 16,007
a.2) Prior period :
Demand 7 day Call Up to 1 1-3 Month 3-6 Month 6 Month-1 1 Year and
Accounts month Year over
Saving deposits 19,739 - 87,942 43,255 14,086 3,676 15,138
Foreign currency 459,376 - 571,962 350,931 35,962 9,423 398
deposits
Residents in Turkey 441,176 - 554,336 344,611 33,215 7,945 379
Residents abroad 18,200 - 17,626 6,320 2,747 1,478 19
Public sector 39 - - - - - -
deposits
Commercial deposits 60,178 - 84,702 4,805 9,563 6 15
Other institutions 36,818 - 482 16 9 1 -
deposits
Precious metals 10,918 - - 12,731 - 1,589 -
deposits
Interbank deposits 22,195 - 29,720 14,336 - 1,124 -
Central Bank of - - - - - - -
Turkey
Domestic Banks 12,395 - - - - 1,124 -
Foreign Banks 9,800 - 29,720 14,336 - - -
Special finance - - - - - - -
houses
Other - - - - - - -
Total 609,263 - 774,808 426,074 59,620 15,819 15,551
b.1) Information on saving deposits under the guarantee of saving deposit
insurance and exceeding the limit of saving deposit insurance:
Under the guarantee of Exceeding the limit of
saving deposit insurance
Saving Deposits saving deposit
Current Prior Period Current Prior Period
Period Period
Saving deposits 42,125 27,388 123,037 156,447
Foreign currency saving deposits 309,023 216,769 453,558 709,659
Other deposits in the form of saving 18 764 7,826 7,424
deposits
Foreign branches' deposits under foreign - - -
authorities' insurance
-
Off-shore banking regions' deposits under -
foreign authorities' insurance
- - -
Total 351,166 244,921 584,421 873,530
b.2) The bank which has settled abroad should disclose, the total amount
of savings deposit in Turkey branch, and insured in the country of head office :
None
2. Information on funds provided from repurchase agreement
transactions:
Current Period Prior Period
TL FC TL FC
From domestic transactions 11,647 - 24,617 -
Financial institutions and organizations 5,000 - 14,612 -
Other institutions and organizations 1,801 - 4,546 -
Real persons 4,846 - 5,459 -
From foreign transactions - - 1,009 -
Financial institutions and organizations - - - -
Other institutions and organizations - - 1,008 -
Real persons - - 1 -
Total 11,647 - 25,626 -
3. a) Information on funds borrowed:
Current Period Prior Period
TL FC TL FC
Short-term 19,690 206,383 17,921 212,970
Medium and long-term - 59,726 - 64,747
Total 19,690 266,109 17,921 277,717
4. a) Information on debt securities issued: None.
b) The explanation on the maturity structure, interest rate, type of currency
of the issued marketable securities : None.
5. Explanation on funds: None
6. Explanation on miscellaneous payables:
Current Period Prior Period
Total amount of cash collateral obtained 241 135
The table consists of blocked accounts regarding cash collateral, loans, import
and export transactions
7. Other assets and liabilities which exceed 10 % of the balance sheet
total (excluding off-balance sheet commitments) and breakdown of these which
constitute at least 20% of grand total: None
8. Explanation on leasing operations:
Current Period Prior Period
Gross Net Gross Net
Less than a year 2,097 2,097 2,387 2,203
1-4 years 5,769 4,354 6,801 5,379
More than 4 years - - - -
Total 7,866 6,451 9,188 7,582
9. Information on interest and expense accruals:
Current Period Prior Period
TL FC TL FC
Accrued interest on deposits 5,830 964 5,893 1,137
Accrued interest on funds borrowed 2,068 2,127 1,823 1,602
Accrued interest on bonds - - - -
Accrued interest on repurchase 17 - 31 -
agreement transactions
Accrued interest on derivative 7,851 - 5,133 -
financial instruments
Accrued interest and expense - - - -
Foreign exchange losses accrued 7,851 - 5,133 -
Other interest and expense accruals 3,671 - 1,118 -
Total 19,437 3,091 13,998 2,739
10. Provisions and subordinated loans :
a) Information on general provisions::
Current Period Prior Period
General provisions 6,470 6,848
Provisions for First Group Loans and Receivables 5,498 5,810
Provisions for Second Group Loans and Receivables - 35
Provisions for Non Cash Loans 972 1,003
Others - -
Total 6,470 6,848
b) Information on employee termination benefits and notice indemnity:
5 PP 4 PP 3 PP 2 PP Prior Current
Period Period
Actual Payments of Employee 56 107 947 662 435 -
Termination Benefits
Reserve for Employee Termination 1,580 3,140 4,456 6,912 10,972 13,736
Benefits and Notice Indemnity
Actual Payment Ratio %3.57 %3.40 %21.24 %9.59 %3.96 %8.35
Ratio of reserve for Employee - - - - - %8.35
Termination Benefits and Notice
Indemnity
Possible reserve for Employee - - - - - 787
Termination Benefits and
Notice Indemnity
As of March 31, 2003, TL 787 of reserve for employee termination benefits and
notice indemnity was reflected to the financial statements corresponding to
8.35% of total liability of TL 13,736.
c) Information on free reserves for possible losses : None.
d) Information on subordinated loans:
Prior
Current Period Period
TL FC TL FC
From Domestic Banks - - - -
From Other Domestic Institutions - - - -
From Foreign Banks - - - -
From Other Foreign Institutions - 25,501 - 27,644
Total - 25,501 - 27,644
11. Information of Shareholders' Equity:
a) Presentation of paid-in capital:
Current Period Prior Period
Common stock 55,125 55,125
Preferred stock - -
b) Paid-in capital amount, explanation as to whether the registered share
capital system is applicable to the Bank if so, amount of registered share
capital ceiling :
Capital System Paid-in capital Ceiling
Registered capital system 55,125 100,000
c) Information on share capital increases and their sources; other
information on increased capital shares in current period: None
d) Information on share capital increases from revaluation funds: None.
e) Capital commitments in the last fiscal year and at the end of the
following interim period, the general purpose of these commitments and projected
resources required to meet these commitments : None.
f) Indicators of the Bank's income, profit and liquidity for the previous
periods and within these indicators possible affects on capital foresighting
uncertainty : Not applicable.
g) Information on privileged shares :
7 % of the Bank's remaining net income and tax after deducting legal
reserves and first dividends, corresponding to the Bank's 60,000 shares of TL
30,000,000 (in full TL) is distributed to the founder shares.
12. a) Common stock issue premiums, shares and equity instruments: None
13. Information on shareholders having more than 10 % share:
Name/Commercial title Amounts Share Percentage Paid-in capital Unpaid portion
Teb Mali Yatirimlar A.S. 38,631 70.08% 38,631 -
III- Footnotes And Explanations Related To the Income Statement
There is no fundamental error for any groups or items related to the prior
period. There is no change in accounting estimates for the fiscal year.
The breakdown of other interest and non-interest income and expense accounts
that exceed 10% of the related totals are shown below.
Other interest expense amounting to TL 4,126 includes interest expense on
marketable securities subject to repurchase agreements amounting to TL 3,945.
Other fee and commission income amounting to TL 5,442 includes fees and
commissions on credit cards amounting to TL 1,987, and other fee and commission
expense amounting to TL 3,213 includes fees and commissions on credit card and
interbank money marked transactions amounting to TL 1,661 and TL 537,
respectively.
1. a) Information on interest income received from investments and
subsidiaries:
Current Period Prior Period
Interest received from investments and subsidiaries 1,017 77
b) Information on financial lease income: None.
c) Interest received from reverse repurchase agreement transactions:
2. a) Information on interest expense to investments and subsidiaries: None
Current Period Prior Period
Interest expense to investments and subsidiaries 85 362
b) Information on financial lease expenses :
Current Period Prior Period
Financial lease expense 66 83
c) Distribution of interest expense on deposits based on maturity of
deposits :
Time Deposits
Demand Up to 1 Up to 3 Up to 6 More than 1
Deposits Month Months Months Year
Account name Up to 1 Total
Year
TL
Bank deposits 2 2,276 - - - - 2,278
Saving deposits 59 7,345 5,257 2,052 457 1,640 16,810
Public sector deposits - - - - - - -
Commercial deposits 138 5,618 699 213 1 1 6,670
Other deposits 6 76 14 1 - - 97
7 days call accounts - - - - - - -
Total 205 15,315 5,970 2,266 458 1,641 25,855
FC
Foreign currency 240 2,987 2,041 211 69 4 5,552
deposits (*)
7 days call accounts - - - - - - -
Precious metal - 4 55 - 5 - 64
deposits
Total 240 2,991 2,096 211 74 4 5,616
Total 445 18,306 8,066 2,477 532 1,645 31,471
(*) Interest expense on foreign currency demand deposits includes TL 200 of
foreign bank deposits interest expense.
d) Interest expense on repurchase agreements :
Current Period Prior Period(*)
TL FC TL FC
Interest expense on repurchase agreements 3,945 - 6,324 -
(*) Since interest on repurchase agreements are included in the Uniform Chart of
Accounts after February 1, 2002, the information for prior period is not
presented.
3. Net income/losses from marketable securities for investment purposes:
None
4. Information on other operating income :
The information on the factors affecting the Bank's income including
extraordinary items and new developments, and the explanation on nature and
amount of income earned from extraordinary items : None.
5. Provision expenses of banks for loans and other receivables:
Current Period Prior Period
Specific provisions for loans and other receivables 243 5,081
Unsecured - -
Other groups 243 5,081
General provision expenses 1,010 366
Marketable securities impairment expense 40 5
Provision for impairment* - -
Other 140 -
Total 1,433 5,452
(*) Provision for impairment related to participations, subsidiaries and
securities held to maturity.
6.a) Income and expenses relating to investments and subsidiaries : None
b) Income / loss from investments, which are accounted for under the equity
method : None.
c) The information on income and expense from related party
transactions:
The Bank has certain banking transactions with group companies. These are
commercial transactions, which are realized in line with market rates. These are
reflected in income statement. The related amounts are presented in Part V,
section V.
7. The explanations on net income / loss for the period:
a) The nature and amount of certain income and expense items from ordinary
operations is disclosed if the disclosure for nature, amount and repetition rate
of such items is required for a complete understanding of the Bank's performance
for the period : None
b) Effect of changes in accounting estimates on income statement for the
current and, if any for subsequent periods : None.
8. Nature and amount of changes in accounting estimates, which have a
material effects on current period or expected to have a material effect on
subsequent periods : None.
IV. Footnotes And Explanations Related To the Off-Balance Sheet
Commitments
1.a) Disclosure to be made separately from other contingent liabilities :
a.1) The Bank's share in contingent liabilities of joint ventures together
with other ventures : None.
a.2) Share of joint ventures in their own contingent liabilities: None.
a.3) The Bank's contingent liabilities resulting obligations of other
ventures in joint ventures : None.
b) Accounting and presentation of contingent assets and liabilities in the
financial statements :
b.1) For contingent assets, if realization probability is close to certain,
then it is accounted. If realization probability is low, then it is explained in
the footnotes. As of March 31, 2003 there are no contingent assets needed to be
explained.
b.2) For contingent liabilities, if realization probability is close to
certain, then provision is set. If there is low or no realization probability,
then it is explained in the footnotes : None.
2. Information on off-balance sheet liabilities :
a) Nature and amount of irrevocable loan commitments : Credit card
expenditure limit commitments are 72,817 TL and 75,681 TL as of March 31, 2003
and December 31, 2003 respectively.
b) Nature and amount of contingent loss and commitments from off-balance
sheet items including below statements:
The Bank, within the context of banking activities, undertakes certain
commitments, consisting of loan commitments, letters of guarantee, acceptance
credits and letters of credit.
b.1) Non-cash loans including guarantees, acceptances, financial collaterals
and other letters of credits:
As of March 31, 2003 total guarantees and commitments consist of
letter of guarantess amounting to TL 549,818, acceptances amounting to TL 51,547
and letters of credit amounting to TL 275,162.
b.2) Guarantees, surety ships and similar transactions : None other than the
ones explained in article b.1).
3.a) Non-cash loans:
Current Period Prior Period
Guarantees given against cash loans 47,315 67,381
With maturity of 1 year or less than 1 year 16,784 25,247
With maturity of more than 1 year 30,531 42,134
Other non-cash loans 837,122 840,664
Total 884,437 908,045
b) Collateral, mortgage and other restrictions on tangible fixed assets, the
amount of capital expenditures related to expenses construction of tangible
fixed assets, intangible fixed asset purchase commitments: None.
4. The information on the Bank's rating by in the international rating
introductions :
The results of the trading performed by Moody's Investor Services and Fitch
Ratings are shown below:
Moody's Investor Services: January 2002
Bank Financial Strength D+
Long Term FX Deposits B3
Fitch Ratings: March 2003
Foreign Currency Commitments
Long Term B-
View Negative
Turkish Lira Commitments
Long Term B-
View Negative
National
Long Term A (tur)
View Negative
Individual Rating C/D
Support Points 4T
V- Footnotes And Explanations on the Risk Group of the Bank
1. Volume of related party transactions, income and expense amounts
involved and outstanding loan and deposit balances :
a) Current Period :
Related Parties (*) Investments and Direct and indirect Other entities included
in
subsidiaries shareholders of the Bank
related parties
Cash Non-cash Cash Non-cash Cash Non-cash
Loans and other receivables
Balance at beginning of period 207 16,503 668 7,564 11,412 2,792
Balance at end of period 100 18,947 601 886 281 1,847
Interest and commission income 1,017 17 240 1 1,483 8
b) Prior Period :
Related Parties (*) Investments and Direct and indirect Other entities included
in
subsidiaries shareholders of the Bank
related parties
Cash Non-cash Cash Cash Non-cash
Loans and other receivables
Balance at beginning of period 91 40,782 841 1,346 5,499 6,217
Balance at end of period 207 16,503 668 7,564 11,412 2,792
Interest and commission income 1,821 110 39 514 2,336 515
received
c.1) Information on related party deposits balances:
Related parties (*) Investments and Direct and indirect Other entities included
subsidiaries shareholders of the
Bank in related parties
Deposits Current Prior Current Prior Current Prior
period period
period period period period
Balance at beginning of 6,705 10,493 204,604 66,752 15,654 13,797
period
Balance at end of period 4,209 6,705 1,534 204,604 194,469 15,654
Interest on deposits 85 541 - 2,754 1,794 12,520
c.2) Information on forward and option agreements and other similar
agreements made with related parties :
Related Parties (*) Investments and Direct and indirect Other entities included
subsidiaries shareholders of the in related parties
Bank
Current Prior Current Prior Current Prior
period period period
period period period
Trading transactions 144,407 120,487 75,761 74,331 65,259 45,834
Beginning of period 58,956 60,625 48,679 26,039 27,520 17,619
End of period 85,325 58,956 27,608 48,679 36,947 27,520
Total income/loss 426 906 (526) (387) 792 695
Hedging transactions
purposes
Beginning of period - - - - - -
End of period - - - - - -
Total income/loss 426 906 (526) (387) 792 695
(*) The scope of the related parties are defined in the Article 20-2 of
the "Regulation on the Establishment and Operations of Banks".
2. Disclosures for related parties
a) The relations of the Bank with the entities controlled by the Bank and
its related parties, regardless of whether there are any transactions or not:
The Bank enters into baking transactions with related parties. These are
commercial transactions and realized on an arms-length basis.
a) Besides the structure of relationship, nature of the transaction,
amount and ratio to the total volume of transactions, amount of major items and
ratio to all items, pricing policies and other factors:
% According to the Amounts at
the Financial Statements
Amount
Securities held to maturity -
-
Cash loans 982 0.11
Noncash loans 21,680 2.45
Deposits 200,212 13.20
Forward transactions and option agreements 149,880 12.91
Other receivables -
-
These transactions are priced in accordance with the general pricing policies of
the Bank and are in line with market rates.
b) In the case that disclosing items separately, total of similar items
is disclosed in order to present the total impact on financial statements :
Explained in the article b.
c) Investments accounted for under the equity method : None.
e) Disclosures related to purchase and sale of real estate and other
assets, trading of services, agency contracts, leasing contracts, transferring
information as a result of research and development, license contracts,
financing (loans and cash or real capital supports included), guarantees, and
management contracts :
The Bank has financial lease agreements with TEB Finansal Kiralama A.S.. The
total leasing obligations related to these agreements amounted to TL 6,451.
Additionally, the Bank provides agency services for TEB Sigorta A.S. and TEB
Yatirim Menkul Degerler A.S.
Within the limits of the Banking Law, the Bank renders cash and non-cash
loans to its related parties and the ratio of these to the Bank's total cash and
non-cash loan portfolio is 1.29 %. Amounts of these loans are explained in the
note V- 1a.
As of March 31, 2003 the Bank has no purchases and sale of real estate
and other assets, transfer of information as a result of research and
development, license and management contracts with the related parties.
VI- Footnotes And Explanations on Inflation Accounting
Inflation Accounting
The accompanying financial statements are prepared by applying inflation
accounting to the financial statements, which are prepared on a historical cost
basis, except for the revaluation of fixed assets in line with Turkish Tax
Legislation, in accordance with the provisions of Communique No : 14 "Accounting
Standard Related to the Preparation of Financial Statements in Hyperinflationary
Periods" related to ARR. Communique No:14 requires banks to restate their
financials in the equivalent purchasing power of Turkish Lira at the balance
sheet date. One characteristic that necessitates the application of inflation
accounting under the provisions of Communique No : 14 is a cumulative three-year
inflation rate approaching or exceeding 100%. As of March 31, 2003 based on the
wholesale price indices announced by the State Institute of Statistics, the
cumulative three-year inflation rate in Turkey is 224%.
Communique No:14 requires that the financial statements should be restated in
the equivalent purchasing power at the balance sheet date and the financial
statements of prior year should be restated in their entirety to the measuring
unit current at the balance sheet date.
The main guidelines for inflation accounting are as follows:
Cash and monetary assets and liabilities, which maintain their nominal balances
but experience a decline in purchasing power are not restated because they are
already expressed in terms of the monetary unit current at that balance sheet
date.
Non-monetary assets and liabilities which are not carried at amounts current at
the balance sheet date and other components of shareholders' equity (except for
the revaluation surplus which is eliminated) are restated by applying the
relevant conversion factors; being the change in the general price index from
the date of acquisition to the closing date. The inflation adjusted share
capital amount has been derived by indexing each capital increase other than
bonus shares from statutory revaluation fund from the date they were
contributed. Transfers to share capital from general reserves, gain on sale of
property and investments and inappropriate profits are considered as cash
contributions and are restated from the date of contribution.
Fixed assets subject to depreciation are restated from their historical
acquisition costs after eliminating the statutory revaluation increments.
Depreciation is not separately restated in the income statement since it is
computed over restated amounts.
Non-monetary items reflected at current values are not restated since they are
already stated in the current purchasing power.
Investments and subsidiaries denominated in Turkish Lira are reflected at
restated costs by converting historical acquisition costs, excluding free shares
from revaluation fund, with the relevant conversion factors. Transfers to share
capital from general reserves, gain on sale of property and investments and
inappropriate profits are considered as cash contributions and are restated from
the date of contribution. Investments and subsidiaries denominated in foreign
currency are converted to Turkish Lira with the exchange rates prevailing and
year-end.
All items in the statements of income are restated by applying the appropriate
conversion factors.
The effect of inflation on the Bank's net monetary position is included in the
statements of income and separately disclosed as a net monetary gain or loss.
The effect of inflation accounting on prior year financial statements in
included in retained earnings and the effect of restatement is disclosed
separately under shareholders' equity.
Indices and conversion factors that are used to restate the accompanying the
financial statements as of December 31, 2002, reflecting the restatement for the
changes in the general purchasing power of the Turkish is as follows;
Dates Index Conversion Factors
December 31, 2002 6,478,8 1.124
December 31, 2001 4,951.7 1.471
December 31, 2000 2,626.0 2.773
March 31, 2003 7,281.8 1.000
March 31, 2002 5,387.9 1.352
Restatement of balance sheet and income statement items through the use of a
general price index and relevant conversion factors does not necessarily mean
that the Bank could realize or settle the same values of assets and liabilities
as indicated in the balance sheets. Similarly, it does not necessarily mean that
the Bank could return or settle the same values of equity to its shareholders.
In accordance with Communique No :14, the Bank obtains expertise reports for its
buildings.
As of March 31, 2003 the total amount of legal reserves and general reserves are
TL 7,555 and TL 28,769, respectively, in the Bank's statutory books of account.
Balance sheet and income statement for the period ended March 31, 2003 are
reviewed. Balance sheet as of December 31, 2002, is audited. Income statement
for the period ended March 31, 2002 is unaudited.
Income statement items do not have seasonality. However, restatement of income
statement items were made with monthly indices.
VII- Explanations Related To Subsequent Events
a) Disclosure related to subsequent events and their impact on the financial
statements as required by the related standard.
a.1) In accordance with the decision related with the distribution of
profit, declared at the Annual General Meeting of the Bank dated March 27, 2003,
the Bank has started to pay dividends to its shareholders at a 27.61% rate on
April 4, 2003.
b) The impact of significant changes in foreign exchange rates subsequent to
the balance sheet date on the foreign currency transactions, items and on the
financial statements of the Bank : There are no significant changes.
SECTION SIX
INDEPENDENT LIMITED REVIEW REPORT
I- Explanations on The Independent Limited Review Report
The financial statements of the Bank were reviewed by Guney Serbest Muhasebeci
Mali Mupavirlik A.S. (An Affiliated Firm of Ernst &Young International) and the
review report dated May 9, 2003 is presented preceding the financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRFEAXSLFFADEEE
1 Year Turbine Aviation (CE) Chart |
1 Month Turbine Aviation (CE) Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
