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VAKIFBANK
2014 ANNUAL REPORT
223
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES
CONSOLIDATED FINANCIAL REPORT AS AT AND
FOR THE YEAR 31 DECEMBER 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE
Lending loans and investments in marketable securities generate higher return than the average rate of return of the Bank’s operating activities on the basis
of maturity structures and market conditions. When bank placements are considered, they have short term maturity in terms of liquidity management but earn
lower return. The Bank takes position against short-term foreign exchange risk, interest rate risk and market risk in money and capital markets, by considering
market conditions, within specified limits set by regulations. The Bank hedges itself and controls its position against the foreign exchange risk being exposed
due to foreign currency available-for-sale investments, investments in other portfolios and other foreign currency transactions by various derivative transactions
and setting the equilibrium between foreign currency denominated assets and liabilities.
Foreign currency position is closely followed taking the legal limits and the Bank’s internal control regulations, formed in a balanced basket taking the market
conditions into account.
In order to avoid interest rate risk, assets and liabilities having fixed and floating interest rates are kept in balance, taking the maturity structure into consideration.
Information on foreign currency transactions
Transactions of the Parent Bank and its consolidated subsidiaries located in Turkey are recorded in TL, the functional currency of the Parent Bank and the related
subsidiaries. Foreign currency transactions are recorded using the foreign exchange rates ruling at the transaction date. The foreign exchange rate differences
are recognized as foreign exchange gains or losses in the statement of income.
Foreign exchange differences resulting from amortized costs of foreign currency denominated available-for-sale financial assets are recognized in the
statement of income whilst foreign exchange differences resulting from unrealized gains and losses are presented in “valuation differences of marketable
securities” under equity.
If the net investments in associates and subsidiaries operating in foreign countries are measured at cost, they are reported as translated into TL by using
the foreign exchange rate at the date of transaction. If related associates and subsidiaries are measured at fair value, net foreign operations are reported as
translated into TL by the rates prevailing at the date of the determination of the fair value.
III. INFORMATION ON COMPANIES SUBJECT TO CONSOLIDATION
Investments in consolidated companies
As at and for year ended 31 December 2014, the financial statements of T. Vakıflar Bankası T.A.O, Vakıf International A.G., Vakıf Finansal Kiralama A.Ş., Güneş
Sigorta A.Ş., Vakıf Emeklilik A.Ş., Vakıf Finans Faktoring Hizmetleri A.Ş., Vakıf Yatırım Menkul Değerler A.Ş., Vakıf Portföy Yönetimi A.Ş., Vakıf Gayrimenkul Yatırım
Ortaklığı A.Ş. and Vakıf Menkul Kıymet Yatırım Ortaklığı A.Ş. have been included in the consolidated financial statements of the Group.
Vakıf International AG
, was established in 1999 to operate in the banking sector in foreign countries, in line with the Bank’s globalization policy. Its head office
is in Vienna.
Vakıf Finansal Kiralama A.Ş.,
was established in 1988 to enter into finance lease operations and related transactions and contracts. Its head office is in Istanbul.
Güneş Sigorta A.Ş.
was established under the leadership of the Bank and Toprak Mahsulleri Ofisi in 1957. The Company has been operating in nearly all non-life
insurance branches like fire, accident, transaction, engineering, agriculture, health, forensic protection, and loan insurance. Its head office is in Istanbul.
Vakıf Emeklilik A.Ş.
was established under the name Güneş Hayat Sigorta AŞ in 1991. In 2003 the Company has taken conversion permission from Treasury and
started to operate in private pension system. Its head office is in Istanbul.
Vakıf Finans Factoring Hizmetleri A.Ş.
was established in 1998 to perform factoring transactions and any kind of financing transactions. Factoring, the
main operation of the Company, is a financing method that includes the trade receivables of production, distribution and service companies to be sold to
intermediary institutions. Its head office is in Istanbul.
Vakıf Yatırım Menkul Değerler A.Ş.
was established in 1996 to provide service to investors through making capital markets transactions, issuance of capital
market tools, commitment of repurchase and sales, and purchase and sales of marketable securities, operating as a member of stock exchange, investment
consultancy, and portfolio management. Its head office is in Istanbul.
Vakıf Portföy Yönetimi A.Ş.
operates in investment fund management, portfolio management and pension fund management. Its head office is in Istanbul.