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Türkiye Vakıflar Bankası Türk Anonim Ortaklığı
Unconsolidated Financial Report as at and
For the Year Ended 31 December 2013
(Currency: Thousands of Turkısh Lıra (“TL”))
(Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Section 3 Note I)
XXII. Other disclosures
Earnings per shares
Earning per share has been calculated by dividing the net profit for the year to weighted average of outstanding shares. In Turkey, the companies may
perform capital increase (“Bonus Shares”) from retained earnings. In earning per share computation bonus shares are treated as issued shares.
As at and for the year ended 31 December 2013, earnings per 100 share is TL 0.6342 (31 December 2012: TL 0.5840).
Related parties
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making
financial and operating decisions. Shareholders, top executives and board members are accepted as related party personally, with their families and
companies according to TAS 24 -
Related Party Disclosures Standard
. Transactions made with related parties are disclosed in Section 5 Note VII.
Cash and cash equivalents
Cash and cash equivalents which is a base for preparation of cash flow statement includes cash in TL, cash in FC, cheques, demand deposits for both
Central Bank of Turkey (“CBT”) and other banks, money market placements and time deposits at banks and marketable securities whose original
maturity is less than three months.
Changes in Accounting Policies
None.
SECTION FOUR
Information Related to Financial Position of the Bank
I. Capital adequacy ratio
The Bank’s unconsolidated capital adequacy ratio is 13.70% (31 December 2012: 16.14%).
Risk measurement methods in calculation of capital adequacy ratio
Capital adequacy ratio is calculated within the scope of the “Regulation on the Measurement and Assessment of Capital Adequacy Ratios of Banks
(Regulation)”, “Regulation on Credit Risk Mitigation Techniques” and “Communiqué on Risk Weighted Amounts for Securitization Exposures” published in
Official Gazette no. 28337 dated 28 June 2012 and “Regulation on the Equity of Banks” published in Official Gazette no. 26333 dated 1 November 2006.
The data used in calculation of capital adequacy ratio is organized in accordance with the accounting records prepared in compliance with the current
legislation. Besides, the Bank classifies these data as “Trading Book” and “Banking Book”; and takes into account in the calculation of market risk and
credit risk accordingly. Operational risks are also included in the calculation of capital adequacy ratio.
In the calculation of risk-based amounts, the Bank classifies its receivables into risk groups described in 6th article of the Regulation and considers
the ratings and risk mitigating elements. The amounts are evaluated in the related risk weight group, accordingly. The Bank applies “basic financial
guarantee method” in the consideration of risk mitigating elements for banking book accounts.
Trading book accounts and the items deducted from the capital base are not included in the calculation of credit risk. In calculation of risk weighted
assets, impairments, depreciation and amortization, and provisions are considered as deduction items.
In the calculation of their risk-based values, non-cash loans are weighted after netting with specific provisions that are classified under liabilities and
calculated based on the “Regulation on Identification of and Provision against Non-Performing Loans and Other Receivables”. The net amounts are
multiplied by the rates stated in the Article 5 of “Regulation regarding Measurement and Assessment of Capital Adequacy Ratios of Banks”, subjected to
risk mitigation in accordance with the “Communique on Credit Risk Mitigation Techniques”, classified into related risk-weighted group in accordance with
Article 6 of the Regulation, then multiplied with the risk weigth of the group in accordance with the Appendix 1 of the Regulation.
In the calculation of their risk-based values, Derivative Financial Instruments and Credit Derivative Contracts which are accounted in banking book,
the receivable amounts due to counter parties are multiplied by the rates stated in the Appendix 2 of the Regulation, subjected to risk mitigation in
accordance with the “Communique on Credit Risk Mitigation Techniques”, classified into related risk-weighted group in accordance with Article 6 of the
Regulation, then multiplied with the risk weigth of the group in accordance with the Appendix 1 of the same Regulation. In compliance with Article 5
of the Regulation, repo transactions, investment securities and commodity lending transactions are accounted for “Counterparty Credit Risk”. The Bank
applies “Fair Value Measurement” in the calculation of “Counterparty Credit Risk”.
VAKIFBANK ANNUAL REPORT 2013
125