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FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT
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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
As per “Law regarding amendments to the Income Tax Law and Some Other Certain Laws and Decree Laws” accepted on 23 July 2010 at the Grand National
Assembly of Turkey, the expression of “can be deducted from the earnings again in the context of this legislation (including the legislation regarding the tax
rate) valid at this date” has been amended as “can be deducted from the earnings again in the context of this legislation (including the legislation regarding
the tax rate as explained in the second clause of the temporary article no 61 of the Law) valid at this date” and the following expression of “ Investment
incentive amount used in determination of the tax base shall not exceed 25% of the associated taxable income. Tax is computed on the remaining income per
the enacted tax rate” has been added. This Law has been published in the Official Gazette on 1 August 2010.
The clause “The amount which to be deducted as investment incentive to estimate tax base cannot exceed 25% of related income” which has been added to
first clause of the temporary 69th article of Law No: 193 with the 5th article of Law No: 6009 on Amendments to Income Tax Law and Some Other Laws and
Decree Laws has been abrogated with the 9 February 2012 dated decisions no: E.2010/93 and K.2012/20.
XIX. ADDITIONAL INFORMATION ON BORROWINGS
Group obtains funding resources such as syndication and securitization transactions in case of need. In the current period, the Parent Bank obtained funds
through issuance of bonds and bills domestically and internationally.
These transactions are initially recognized at acquisition costs at the transaction date and are subsequently measured at amortized cost using effective interest
method.
XX. INFORMATION ON ISSUANCE OF EQUITY SECURITIES
The shares of the Parent Bank having nominal value of TL 322,000,000 (full TL), representing the 25.18% of the Bank’s outstanding shares, was publicly offered
at a price between TL 5.13-5.40 for each share having a nominal value of TL 1 on November 2005, and TL 1,172,347 was recorded as “Share Premiums” in
shareholders’ equity. TL 448,429 of this amount has been utilized in capital increase on 19 December 2006.
XXI. CONFIRMED BILLS OF EXCHANGE AND ACCEPTANCES
Confirmed bills of exchange and acceptances are realized simultaneously with the customer payments and recorded in off-balance sheet accounts as possible
debt and commitment, if any. As at the balance sheet date, there are no acceptances recorded as liability in return for assets.
XXII. GOVERNMENT INCENTIVES
As at 31 December 2014, Vakıf Finansal Kiralama AŞ, a consolidated subsidiary of the Group, has unused investment incentives amounting to TL 248,780. (31
December 2013: TL 253,039).
XXIII. SEGMENT REPORTING
Operational segments are determined based the structure of the Group’s risks and benefits and presented in Section Four Note X.
XXIV. OTHER DISCLOSURES
Earnings per shares
Earnings per share is calculated by dividing the net profit for the period 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 2014, earning per 100 shares is full TL 0.7255 (31 December 2013: full TL 0.6513).
Related parties
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 Five Note VII.