307
PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT
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.)
Movement of severance pay provision in the period:
Current Period Previous Period
Opening balance
344,858
289,501
Current service cost
33,928
25,139
Previous service cost
-
134
Interest cost
27,396
25,086
Paid compensation
(34,984)
(40,406)
Payment/Reduction of benefits/Layoff accordingly composed loss//(gain)
214
482
Actuary loss/(gain)
(2,382)
44,936
Net foreign exchange differences from foreign subsidiaries
48
(14)
Closing balance
369,078
344,858
Provision for exchange rate differences on foreign currency indexed loans
As at 31 December 2015 the Group has recorded provision for foreign exchange losses on principal amounts of foreign currency indexed loans
amounting to TL 17,160 (31 December 2014: TL 12,048) and has reflected the related foreign exchange loss amount in the consolidated financial
statements by offsetting from related loans.
Provisions for non-cash loans that are not indemnified or converted into cash
As of 31 December 2015, the Bank has recorded TL 40,930 (31 December 2014: TL 63,030) as specific provisions for non-cash loans that are not
indemnified or converted into cash.
Information on insurance technical provisions
Current Period
Prior Period
Unearned Premium Reserves
715,692
646,856
Outstanding Claims Reserves
1,108,017
950,292
Life Mathematical Reserves
265,760
44,010
Other
2,086
1,554
Total
2,091,555
1,642,712
Information on other provisions
Information on other provisions exceeding 10% of total provisions
Current Period
Prior period
Provisions for credits
182,585
105,005
Specific provisions for non-cash loans
40,930
63,030
Provision for cheques
47,020
37,556
Provisions for lawsuits against the Bank
9,316
16,142
Provisions for credit card promotions
9,100
10,177
Other provisions
16,258
6,962
Total
305,209
238,872
