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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 ENDED 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
VI. INFORMATION AND DISCLOSURES ON CONSOLIDATED STATEMENT OF CASH FLOWS
1. Disclosures for “other” items in the consolidated statement of cash flows and effect of change in foreign currency rates cash and cash equivalents
“Other” balance under the “Operating profit before changes in operating assets and liabilities” amounting to TL (1,915,812) (31 December 2013: TL (221,790))
is comprised of income from capital market transactions and derivative financial instruments and foreign exchange gains for the year ended.
“Net increase/decrease in other liabilities” amounting to TL 1,948,810 (31 December 2013: TL 6,972,033) under “Changes in operating assets and liabilities” is
mainly comprised of cash inflows from repurchase agreements.
“Other” balance under the “Net cash flow from investing activities” amounting to TL (44,008) (31 December 2013: TL (38,870)) is comprised of intangibles
asset purchases.
Since unrealized gains and losses arising from foreign exchange rate changes are not regarded as cash flows, the effect of changes in foreign exchange rate on
cash and cash equivalents in foreign currency has been calculated as TL 4,539 (31 December 2013: TL (9,013)) and presented in the statement of cash flows in
order to reconcile cash and cash equivalents balances at the beginning and end of the year.
2. Cash outflows from acquisition of associates, subsidiaries and joint-ventures
In the current period, Vakıf Menkul Kıymet Yatırım Ortaklığı AŞ has decided to increase the capital of TL 15,000 to TL 20,000 in its registered capital ceiling
amounting to TL 50,000 in accordance with Capital Markets Board’s temprorary clause 1 of “Comminique on Securities Investment Associations” (III-48.2). In
the capital increase, Bank’s nominal share amount has increased from TL 1,763 to TL 2,351 with an increase of TL 588 by using stock rights on 25 November
2014. Besides, in order to finalize the capital increase, Bank has purchased additional shares from stock rights that have not been used in due, amounting
to TL 2,228 from Istanbul Stock Exhange Share Market on 2 December 2014. In this context, Bank’s total nominal share has increased to TL 4,579 and share
proportion has increased to 22.89%.
In the current period, at the Extraordinary General Assembly of Taksim Otelcilik AŞ dated 24 June 2014, the decision of increasing the capital from TL 269,257 to
TL 334,257 through rights offering by TL 65,000. The related change has been registered on 22 July 2014. The nominal share of the Bank TL 137,324 has been
increased by cash TL 33,151 to TL 170,474. The share proportion of the Bank is remained the same (51.001%). TL 8,288 of the cash commitment amounting to
TL 33,151 is paid on 15 July 2014, TL 24,863 is paid on 2 October 2014.
In the current period, related to the capital increase of Vakıf Gayrimenkul Yatırım Ortaklığı AŞ from TL 106,200 to TL 203,320, the Bank has obtained shares
with a nominal value of TL 29,345 at a rate of TL 3.44 by using the stock rights. For these shares TL 100,947 has been paid. Besides, Bank has obtained shares
with a nominal value of TL 20,000 at TL 3.44 rate since the other shareholders did not used their stock rights. Bank has paid TL 68,800 for the shares. As at 4
July 2014, company’s capital increase has been registered and as of the date the existing nominal share of the Bank has been increased from TL 29,345 to TL
78,690 Bank’s share proportion has been increased from 27.63% to 38.70%.
In the current period, subsequent to the approval of the decision of the capital of İstanbul Takas ve Saklama Bankası in the Ordinary Meeting of General
Assembly of the Company dated 28 March 2014, an associate of the Bank, has been increased from TL 420,000 to TL 600,000, TL 120,000 is paid from bonus
shares and TL 60,000 is paid in cash amounting to TL 180,000 in total. The share of the Bank amounting to TL 3,230 is presented as bonus shares received in
the movement table of investments in associates. The stock right in cash capital commitment has been removed related to the capital increase, Banks’ share
has been decreased from 4.86% to %4.37.
In the current period, subsequent to the approval of the decision to increase the paid-in capital of Türkiye Sınai Kalkınma Bankası AŞ from TL 1,300 to TL 1,500
in the Ordinary Meeting of General Assembly of the Company dated 27 March 2014.
3. Cash flows from the disposal of associates, subsidiaries and joint-ventures
There is not any associate, subsidiary or joint-venture disposed in the current and prior year.