VAKIFBANK
2015 ANNUAL REPORT
168
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I. OF SECTION THREE
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI
UNCONSOLIDATED FINANCIAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2015
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
Risk management strategies and policies
Risk management strategies are determined so as to support the Bank’s objectives and goals and maintain Bank’s presence by developing the present
risk management strategies and corporate wide risk culture in parallel with the changing business and risk environment and by applying the well
accepted national and international risk management practices.
The mission of Bank is to continuously increase the values added to the customers, employees, shareholders and society by managing the entrusted
assets and values effectively and productively. In this scope, it is fundamental to adopt forward looking risk based approaches through forming high
quality assets and good management of liabilities in all activities aiming high quality gains.
Bank’s risk management strategy is mainly based on avoiding high risks and legal risks with high impacts even if the probability of happening is
low, taking measures for the risks that may occur due to ordinary banking activities, procuring protection, transferring risks to third parties through
techniques like insurance or credit derivatives and accepting risks that have low impact and probability of occurrence.
Risks are defined, measured, reported and managed in compliance with the policies and national and international standards. In this respect, not only
legal limits but also in-bank limits are considered. Up-to-dateness and compliance of the limits are monitored regularly. Credit risk mitigation policies
are determined and approved by the Board of Directors. Besides, possible risks are considered by following the changes in the market and economic
conditions.
Risk management system and organization have been formed in compliance with the Regulation of Internal Systems.
Explanations Regarding Leverage Ratio
Information on Issues that Cause Differences between Current Period and Previous Period Leverage Ratios
The Bank’s unconsolidated leverage rate which is calculated due to “Regulation on Banks’ Measurement and Evaluation of Leverage Level” actualised as
6.81%. Increase in balance sheet assets and off-balance sheet transactions resulted in change in comparison with previous period (31.12.2014: 7.04%)
leverage rate. The Regulation adjudicated minimum leverage rate as 3%.
Leverage ratio common disclosure template
On-balance sheet exposures
Current Period
(*)
Prior Period
(*)
1 On-balance sheet items (exclude derivatives and SFTs; include collateral)
182,236,355
151,485,391
2 (Assets deducted in determining Basel III Tier 1 capital)
(568,612)
(235,199)
3 Total on-balance sheet exposures (excluding derivatives and SFTs)
181,667,743
151,250,192
Derivative exposures
4 Replacement cost
956,386
405,580
5 Add-on amount
365,598
227,723
6 Total derivative exposures
1,321,984
633,303
Securities financing transaction exposures
7 Gross SFT assets (with no recognition of accounting netting)
779,859
1,680,788
8 Agent transaction exposures
-
-
9 Total securities financing transaction exposures
779,859
1,680,788
Other off-balance sheet exposures
10 Off-balance sheet exposures with gross nominal amount
53,969,900
46,200,245
11 Adjustment amount off-balance sheet exposures with credit conversion factor
1,025,968
557,436
12 Total off-balance sheet exposures
54,995,868
46,757,681
Capital and total exposures
13 Tier 1 capital
16,253,544
14,101,453
14 Total exposures
238,765,454
200,321,964
Leverage ratio
15 Leverage ratio
6.81
7.04
(*)
Calculated by using 3 month average of balances in Leverage Rate Notification table.
