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VAKIFBANK
2014 ANNUAL REPORT
SECTION ONE
General Information
Page:
I.
History of the Bank including its incorporation date, initial legal status, amendments to legal status
106
II.
The Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change in shareholder structure during the period and information on Bank’s risk group
106
III.
Information on the chairman and members of the board of directors, audit committee members, general manager, assistant general managers and their shares in the Bank
107
IV.
Information on the Bank’s qualified shareholders
108
V.
Information about the services and nature of activities of the Bank
109
VI.
Current or likely actual or legal barriers to immediate transfer of equity or repayment of debts between parent bank and its subsidiaries
109
SECTION TWO
Unconsolidated Financial Statements
Unconsolidated Interim Financial Statements
I.
Balance sheet – Assets
110
II.
Balance sheet - Liabilities and equity
111
III.
Off-balance sheet items
112
VI.
Statement of income
113
V.
Statement of gains and losses recognized in equity
114
VI.
Statement of changes in equity
115
VII.
Statement of cash flows
116
VIII.
Statement of profit distribution
117
SECTION THREE
Accounting Policies
I.
Basis of presentation
118
II.
Strategy for the use of financial instruments and information on foreign currency transactions
118
III.
Information on forwards, options and other derivative transactions
119
IV.
Information on interest income and expenses
119
V.
Information on fees and commissions
120
VI.
Information on financial assets
120
VII.
Information on impairment of financial assets
121
VIII.
Information on offsetting of financial instruments
121
IX.
Information on sales and repurchase agreements and securities lending
121
X.
Information on assets held for sale and discontinued operations
121
XI.
Information on goodwill and other intangible assets
122
XII.
Information on tangible assets
122
XIII.
Information on leasing activities
122
XIV.
Information on provisions and contingent liabilities
123
XV.
Information on obligations of the Bank concerning employee rights
123
XVI.
Information on taxation
124
XVII.
Additional information on borrowings
125
XVIII.
Information on issuance of equity securities
125
XIX.
Information on confirmed bills of exchange and acceptances
125
XX.
Information on government incentives
125
XXI.
Information on segment reporting
125
XXII.
Other disclosures
125
SECTION FOUR
Information Related To Financial Position of the Bank
I.
Capital adequacy ratio
126
II.
Credit risk
134
III.
Market risk
145
IV.
Operational risk
146
V.
Foreign currency exchange risk
147
VI.
Interest rate risk
150
VII.
Liquidity risk
154
VIII.
Fair values of financial assets and liabilities
157
IX.
Transactions carried out on behalf of customers, items held in trust
159
X.
Segment reporting
159
SECTION FIVE
Disclosures and Footnotes on Unconsolidated Financial Statements
I.
Information and disclosures related to assets
162
II.
Information and disclosures related to liabilities
180
III.
Information and disclosures related to off-balance sheet items
188
IV.
Information and disclosures related to statement of income
192
V.
Information and disclosures related to statement of changes in shareholders’ equity
197
VI.
Information and disclosures on statement of cash flows
198
VII.
Information and disclosures related to the Bank’s risk group
200
VIII.
Information on domestic, foreign and off-shore branches or investments and foreign representative offices
201
SECTION SIX
Other Disclosures and Footnotes
I.
Other disclosures on the Bank’s activity
202
II.
Information on the Bank’s ratings given by international credit rating institutions
202
III.
Significant events and matters subsequent to balance sheet date that are not resulted
203
IV.
Significant foreign currency exchange rate fluctuations that are subsequent to reporting date
203
SECTION SEVEN
Independent Auditors’ Audit Report
I.
Information on Independent Auditors’ Audit Report
203
II.
Disclosures and footnotes prepared by the independent auditor
203