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VAKIFBANK
2014 ANNUAL REPORT
SECTION ONE
General Information
Page No:
I.
History of the Parent Bank including its incorporation date, initial legal status, amendments to legal status
210
II.
The Parent 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
210
III.
Information on the Parent Bank’s board of director’s chairman and members, audit committee members, chief executive officer, executive vice presidents and their shareholdings in the Bank
211
IV.
Information on people and entities who have qualified share in the Parent Bank
212
V.
Information about the services and nature of activities of the Parent Bank
213
VI.
Differences between the communique on preparation of consolidated financial statements of banks and Turkish accounting standards and short explanatıon about the institutions subject to line-by-line
method or proportional consolidation and institutions which are deducted from equity or not included in these three methods
213
VII
The existing or potential, actual or legal obstacles on the transfer of shareholders' equity between the Parent Bank and its subsidiaries or the reimbursement of liabilities
213
SECTION TWO
Consolidated Financial Statements
I.
Consolidated balance sheet – Assets
214
II.
Consolidated balance sheet-Liabilities and equity
215
III.
Consolidated off-balance sheet items
216
IV.
Consolidated statement of income
217
V.
Consolidated statement of gains and losses recognized in shareholders’ equity
218
VI.
Consolidated statement of changes in shareholder’s equity
219
VII.
Consolidated statement of cash flows
220
VIII.
Consolidated statement of profit distribution
221
SECTION THREE
Accounting Policies
I.
Basis of presentation
222
II.
Strategy for the use of financial instruments and foreign currency transactions
222
III.
Information on companies subject to consolidation
223
IV.
Information on forwards, options and other derivative transactions
224
V.
Information on interest income and expenses
225
VI.
Information on fees and commissions
225
VII.
Information on financial assets
225
VIII.
Information on impairment of financial assets
226
IX.
Information on netting of financial instruments
227
X.
Information on repurchase and resale agreements and securities lending
227
XI.
Information on assets and liabilities arising from assets held for sale and discontinued operations
227
XII.
Information on goodwill and other intangible assets
227
XIII.
Information on tangible assets
228
XIV.
Information on investment properties
228
XV.
Information on leasing activities
228
XVI.
Information on provisions and contingent liabilities
229
XVII.
Information on obligations of the Group concerning employee rights
229
XVIII.
Information on taxation
230
XIX.
Additional information on borrowings
230
XX.
Information on issuance of equity securities
230
XXI.
Confirmed bills of exchange and acceptances
230
XXII.
Government incentives
230
XXIII.
Segment reporting
230
XXIV.
Other disclosures
230
SECTION FOUR
Information Related to the Financial Position of the Group
I.
Consolidated capital adequacy ratio
235
II.
Consolidated credit risk
247
III.
Consolidated market risk
257
IV.
Consolidated operational risk
258
V.
Consolidated foreign currency exchange risk
259
VI.
Consolidated interest rate risk
261
VII.
Consolidated liquidity risk
265
VIII.
Fair values of financial assets and liabilities
269
IX.
Transactions carried out on behalf of customers, items held in trust
273
X.
Consolidated segment reporting
273
SECTION FIVE
Disclosures and Footnotes on Consolidated Financial Statements
I.
Information and disclosures related to consolidated assets
274
II.
Information and disclosures related to consolidated liabilities
292
III.
Information and disclosures related to consolidated off-balance sheet items
300
IV.
Information and disclosures related to consolidated statement of income
304
V.
Information and disclosures related to consolidated statement of changes in equity
309
VI.
Information and disclosures related on statement of cash flows
310
VII.
Information and disclosures related to the parent Bank’s risk group
312
VIII.
Information on domestic, foreign and off-shore branches or investments and foreign representative offices of the Parent Bank
313
SECTION SIX
Other Disclosures and Footnotes
I.
Other disclosures on the Parent Bank’s activity
314
II.
Information on the Parent Bank’s rating given by international institutions
314
III.
Significant events and matters subsequent to balance sheet date that are not resulted
315
IV.
Significant foreign currency exchange rate fluctuations that are subsequent to balance sheet date
315
SECTION SEVEN
Independent Auditors’ Audit Report
I.
Information on Independent Auditors’ Report
315
II.
Disclosures and footnotes prepared by the independent auditors
315