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VAKIFBANK
2014 ANNUAL REPORT
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 AT 31 DECEMBER 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
• the submiting to the Board of Directors and the senior management of not only credit risk management reports about credit portfolio’s distribution
(borrower, sector, geographical region), credit quality (impaired loans, credit risk ratings) and credit concentration but also scenario analysis reports, stress
tests and other analyses,
• the studies regarding the formation of advanced credit risk measurement approaches.
Credit risk is defined and managed for all cash and non-cash agreements and transactions, which carry counterparty risk. Loans with renegotiated terms
are followed in accordance with Bank’s credit risk management and follow-up principles. The financial position and trading operations of related customers
are continuously analyzed and principal and interest payments, scheduled in renegotiation agreement, are strictly controlled by related departments. In the
framework of Bank’s risk management concept, long term commitments are accepted more risky than short term commitments. Besides, risk limits defined
for long term commitments and collaterals that should be taken against long term commitments are handled in a wider range compared to short term
commitments.
Indemnified non-cash loans are regarded as the same risk weight with the loans that are pastdue and unpaid.
Banking operations and lending activities carried in foreign countries are not exposed to material credit risks, due to related countries’ financial conditions,
customers and their operations.
The Bank classifies its past due and impaired receivables as shown below in accordance with the “Regulation on Procedures and Principles for Determination of
Qualifications of Loans and Other Receivables and Provisions to be Set Aside”.
• for which recovery of principal and interest or both delays from their terms or due dates are more than ninety days but not more than one hundred eighty
days are classified as “Group Three- Loans and Other Receivables With Limited Recovery”,
• for which recovery of principal and interest or both delays from their terms or due dates are more than one hundred and eighty days but not more one year
are classified as “Group Four- Loans and Other Receivables With Suspicious Recovery”,
• for which recovery of principal and interest or both delays from their terms or due dates are more than one year are classified as “Group Five - Loans and
Other Receivables Having the Nature of Loss”,
Regardless of the guarantees and pledges received, the Bank provides 20% provision for the Loans and Other Receivables classified in Group Three, and 100%
provision for the Loans and Other Receivables classified in Group Four and Group Five. The provision amount is recognized in profit and loss statement of the
period.
The Bank’s largest 100 cash loan customers compose 22.08% of the total cash loan portfolio (31 December 2013: 19.74%).
The Bank’s largest 100 non-cash loan customers compose 56.67% of the total non-cash loan portfolio (31 December 2013: 60.92%).
The Bank’s largest 100 cash loan customers compose 14.56% of total assets of the Bank and the Bank’s largest 100 non-cash loan customers compose 17.74%
of total off-balance sheet items (31 December 2013: 12.60% and 11.73%).
The Bank’s largest 200 cash loan customers compose 27.73% of the total cash loan portfolio (31 December 2013: 25.43%).
The Bank’s largest 200 non-cash loan customers compose 68.35% of the total non-cash loan portfolio (31 December 2013: 71.10%).
The Bank’s largest 200 cash loan customers compose 18.29% of total assets of the Bank and the Bank’s largest 200 non-cash loan customers compose 21.40%
of total off-balance sheet items (31 December 2013: 16.23% ve 13.69%).