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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
The Interest Rate Risk of the Banking Book Items
Measurement Frequency of Interest Rate Risk
Interest rate risk arising from banking book accounts is calculated in accordance with “Regulation on Measurement and Assessment of Interest Rate Risk Arising
from Banking Book Accounts according to Standard Shock Technique” published in the 23 August 2011 dated Official Gazette no. 28034. Legal limit is monthly
monitored and reported accordingly.
The economic value changes arising from the interest rate fluctuations which are measured according to “Regulation on Measurement and Assessment of
Interest Rate Risk Arising from Banking Book Accounts according to Standard Shock Technique” are presented in the below table:
Currency Unit-Current Period
Applied Shock (+/-x base point)
Gain/Loss
Gain/Equity-Loss/Equity
1. TL
500/(400)
(2,440,546)/2,452,172
(13.54%)/13.61%
2. EURO
200/(200)
178,773/(9,440)
0.99%/(0.05%)
3. USD
200/(200)
441,639/(383,071)
2.45%/(2.13%)
Total (For Negative Shocks)
-
2,059,661
11.43%
Total (For Positive Shocks)
-
(1,820,134)
(10.10%)
Currency Unit-Prior Period
Applied Shock (+/-x base point)
Gain/Loss
Gain/Equity-Loss/Equity
1. TL
500/(400)
(2,412,990)/2,441,246
(15.89%)/16.08%
2. EURO
200/(200)
34,736/10,115
0.23%/0.07%
3. USD
200/(200)
457,473/(383,076)
3.01%/(2.52%)
Total (For Negative Shocks)
-
2,068,285
13.63%
Total (For Positive Shocks)
-
(1,920,781)
(12.65%)
The above table is obtained from unconsolidated 31 December 2014 audit report announced at Public Disclosure Platform.
Stock position risks arising from banking book items:
Information on separations of risks according to objectives including their relation with gains presented under equity and strategically reasons, accounting
techniques and general information about valuation methods with the related assumptions and factors that affect the valuation and significant changes
If carrying value is substantially different from fair value and for publicly traded shares if market value is substantially different from fair value, the comparison
with the market prices are shown in the table below:
Current Period
Comparison
Stock Investments
Carrying Value
Fair Value
Market Value
Stocks quoted in exchange
(*)
203,092
203,092
203,092
1.Stocks Investments Group A
203,092
203,092
203,092
2.Stock Investments Group B
-
-
-
3.Stock Investment Group C
-
-
-
Stocks unquoted in exchange
(**)
320,037
320,037
-
(*)
The values of stocks traded in Stock Exchange are included to both columns assuming the market value is approximate to fair value.
(**)
The values of stocks unquoted in exchange are determined according to valuation reports prepared by independent valuation companies.