VAKIFBANK
2015 ANNUAL REPORT
278
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE
TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND
ITS FINANCIAL SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND
FOR THE YEAR ENDED 31 DECEMBER 2015
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
Risk management strategies and policies
Risk management strategies are determined so as to support the Parent Bank’s objectives and goals and maintain Parent Bank’s presence by
developing the present risk management strategies and corporate wide risk culture in parallel with the changing business and risk environment and by
applying the well accepted national and international risk management practices.
The mission of Parent Bank is to continuously increase the values added to the customers, employees, shareholders and society by managing the
entrusted assets and values effectively and productively. In this scope, it is fundamental to adopt forward looking risk based approaches through
forming high quality assets and good management of liabilities in all activities aiming high quality gains.
The Parent Bank’s risk management strategy is mainly based on avoiding high risks and legal risks with high impacts even if the probability of
happening is low, taking measures for the risks that may occur due to ordinary banking activities, procuring protection, transferring risks to third parties
through techniques like insurance or credit derivatives and accepting risks that have low impact and probability of occurrence.
Risks are defined, measured, reported and managed in compliance with the policies and national and international standards. In this respect, not only
legal limits but also in-bank limits are considered. Up-to-dateness and compliance of the limits are monitored regularly. Credit risk mitigation policies
are determined and approved by the Board of Directors. Besides, possible risks are considered by following the changes in the market and economic
conditions.
Risk management system and organization have been formed in compliance with the Regulation of Internal Systems.
Explanations Regarding Leverage Ratio
Information on Issues that Cause Differences between Current Period and Previous Period Leverage Ratios
The Parent Bank’s consolidated leverage rate which is calculated due to “Regulation on Banks’ Measurement and Evaluation of Leverage Level”
actualised as 6.72%. Increase in balance sheet assets and off-balance sheet transactions resulted in change in comparison with previous period
(31 December 2014: 6.96%) leverage rate. The Regulation adjudicated minimum leverage rate as 3%.
Summary table of comparison with the total risk amount Located total assets held in consolidated financial statements in accordance with IAS.
Current Period
Prior Period
Total asset amount in the consolidated financial statements prepared as per TAS
(*)
179,268,599
162,827,024
The difference between the total asset amount in the consolidated financial statements prepared as per TAS and
the asset amount in the consolidated financial statements prepared as per the Communiqué on the Preparation of
the Consolidated Financial Statements of Banks
(*)
(1,076,559)
(724,438)
The difference between the derivative financial instruments and the loan derivatives amount in the consolidated
financial statements prepared as per the Communiqué on the Preparation of the Consolidated Financial
Statements of Banks and the risk amounts
(*)
(1,071,807)
(641,280)
The difference between the financial transactions with securities or goods warranty amounts in the consolidated
financial statements prepared as per the Communiqué on the Preparation of the Consolidated Financial
Statements of Banks and the risk amounts
(**)
16,205,454
13,728,740
The difference between the off-balance sheet transactions amount in the consolidated financial statements
prepared as per the Communiqué on the Preparation of the Consolidated Financial Statements of Banks and the
risk amounts
(**)
6,745,053
5,151,269
Other differences between the amount in the consolidated financial statements prepared as per the Communiqué
on the Preparation of the Consolidated Financial Statements of Banks and the risk amounts
(**)
(75,157,323)
(67,168,264)
(*)
As the consolidated financial statements, which are prepared according to the 6th paragraph of the article no. 5 of the Communique on Preparation of Consolidated Financial Statements of Banks, as of 31.12.2015 have not been
published yet, the balances as of 30.06.2015 and 31.12.2014 are shown.
(**)
The balances in the table represent the averae of three months.
