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PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT
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.)
Movement of severance pay provision in the period:
Current Period Previous Period
Opening balance
328,246
276,371
Current service cost
31,541
23,764
Previous service cost
-
113
Interest cost
25,920
24,281
Paid compensation
(30,875)
(35,375)
Payment/Reduction of benefits/Layoff accordingly composed loss//(gain)
214
482
Actuary loss/(gain)
(4,819)
38,610
Closing balance
350,227
328,246
Provision for currency exchange loss on foreign currency indexed loans
Current Period
Prior Period
Provision for currency exchange gain/loss on foreign currency indexed loans
17,160
12,048
The Bank has recorded provision amounting to TL 17,160 (31 December 2014: TL 12,048) for foreign exchange losses on principal amounts of foreign
currency indexed loans and reflected the related foreign exchange loss amount in the financial statements by offsetting from related loans.
Provisions for non-cash loans that are not indemnified or converted into cash
As of 31 December 2015, Bank has recorded TL 40,930 (31 December 2014: TL 63,030) as provisions for non-cash loans that are not indemnified or
converted into cash.
Information on other provisions
Information on other provisions exceeding 10% of total provisions
Current Period
Prior period
Provisions for credits
182,585
105,005
Specific provisions for non-cash loans
40,930
63,030
Provision for cheques
47,020
37,207
Provisions for lawsuits against the Bank
4,755
14,673
Provisions for credit card promotions
9,100
10,177
Other provisions
6,885
722
Total
291,275
230,814
Information on provision for probable risks
None.
8. Taxation
Current taxes
Tax provision
As at and for the year ended 31 December 2015, the tax provision was amounted to TL 403,602 (31 December 2014: TL 600,797). As at 31 December
2015, corporate tax liabilities of the Bank was amounted to TL 171,734 (31 December 2014: TL 352,624), after deducting prepaid taxes paid during
temporary tax periods amounted to TL 231,868 (31 December 2014: TL 248,173).
