Presentation
Part I: Presentation
006 Bank Asya in Brief 007 Vision, Mission,Strategic Objectives 008 Key Highlights (Indicators) 010 Bank Asya’s Market Position in the Sector 012 Bank Asya’s Strategy of Growth 016 Milestones 018 Changes in Capital and Shareholder Structure During the Period 021 Awards 022 Message from the Chairman of the Board of Directors 024 Message from the General Manager (CEO) 030 Macroeconomic Overview and the Banking Sector 038 Bank Asya’s Activities in 2011 052 Corporate Social Responsibility 053 Affiliates and Subsidiaries 055 Compliance Opinion for the Annual Report
Part II: Management Information and Principles of Corporate Governance Practices
058 Board of Directors 060 Statutory Auditors 062 Senior Management 064 Organization Chart 066 Committees 069 Summary Report of the Board of Directors 070 Human Resources 071 Training (Job Training) 072 Transaction Volume of the Risk Group of the Bank, Outstanding Loan and Collected Fund Transactions, and Current Income and Expenses for the Reporting Period 073 (Principals of) Corporate Governance Compliance Report 078 Support Services Benefited by Bank Asya 080 Profit Distribution Policy of Bank Asya 080 Profit Distribution Proposal of Bank Asya for 2011 Profits 081 Considerations Regarding the General Assembly 082 Information on Agenda Items
Part III: Financial Information and Risk Management Assessment
086 Summary Report of the Statutory Auditors 087 Summary of Financial Information for Five Years Including the Reporting Period 088 Financial Condition, Profitability and Solvency Assessment 089 Audit Committee Reviews About the Functioning of the Internal Systems 090 Information on Risk Management Policies Implemented for Each Risk Category 092 International Rating Grades
Part IV: Non-Consolidated Financial Statements and Related Footnotes
095 Independent Auditors’ Report 098 Information on Financial Statements and Footnotes
Part V: Consolidated Financial Statements and Related Footnotes
169 Independent Auditors’ Report 172 Information on Financial Statements and Footnotes
Part VI: Contact Information
240 Branches
002 Bank Asya 2011 Annual Report Continuing to have healthy growth … Bank Asya, offers interest-free financial system and its associated advantages to the widest possible audience. By increasing operational efficiency, Bank Asya continues to support the real sector. As for production it offers innovative products and services in retail banking. With a customer satisfaction centered approach, advanced technology and its long-term investments abroad, Bank Asya provides service at world-class standards; Bank Asya is a reputable, reliable and effective participation bank, which boasts a healthy and steady growth.
003 A World: Clean and Viable Without compromising the basic founding principles, Bank Asya represents the values of a powerful and reliable financial environment. Presentation
Bank Asya’s strategic goals focus on Bank Asya In Brief sustainable profitability, producing more value for all stakeholders.
In 1996, Bank Asya, Turkey’s most Invest in people, invest in the Increasing brand value alongside dynamic participation bank, commenced future unmatched growth dynamics operations under the name “Asya Finans” as the country’s sixth private finance Bank Asya understands that when it Bank Asya is transforming a business house. As the sector’s newest participation invests in people and technology, it invests model based on supporting the real sector bank, Bank Asya grew rapidly in a short in the future. The Bank incorporates and manufacturing. The Bank integrates period of time and achieved a strong and advanced technology in order to the fundamental principles of interest-free respected position in the market. strengthen its growth momentum and banking into an effective paradigm of support its dynamic and development- participation banking through its Turkey’s first participation bank focused workforce. This in turn facilitates a management competencies, funding to go public workplace that embrace s the Company’s practices, risk and quality policies, values. innovativeness, and unmatched growth Bank Asya is firmly committed to a strategy dynamics. tailored towards sound and sustainable Advanced technology in banking To this end, the Bank will continue to growth, which it has carefully integrated enhance the brand value that it has into its organizational structure. As the first Bank Asya has expanded the reach of its established both domestically and participation bank in Turkey to go public in delivery network through investments in internationally. order to establish a strong and broad technological infrastructure and alternative capital base, Bank Asya floated 23% of its distribution channels. Iin addition to its 200 In 2011, Bank Asya sustained its shares in 2006. As of year-end 2010, branches, Bank Asya has been particularly profitability and growth in line with its 52.88% of the Bank’s capital was publicly successful in gaining recognition during performance targets thanks to its solid held. By the end 2011, the free float rate recent years through the innovative capital base and healthy balance sheet reached 52.88%. The Bank’s paid-in payment system products that it has structure. In 2011, the Bank continued to capital was TRY 900 million as of the end introduced. After the launch of Europe’s lead the participation bank market in terms of 2011. most advanced contactless credit card, of total assets, loans allocated, non-cash AsyaCard DIT, and Turkey’s first prepaid loans, deposits and net profit. New high-quality products and contactless debit card, DIT Pratik, Bank services in participation banking Asya demonstrated once again its leading role in banking technology with DIT Mobile, Bank Asya works proactively to expand its which allows mobile phones to make product and service line in order to meet contactless transactions, and "Cep-T KGS" the changing needs and expectations of its products. customers across all its business sectors. As the first participation bank in Turkey to Creating more sustainable value be awarded the ISO 9001 Quality Management System Certification, Bank Conducting its operations as a good Asya seeks to strengthen its position within corporate citizen, Bank Asya aligns its the market by developing new interest-free strategic objectives with the principle of banking products, with its innovative “creating more sustainable value” for all of approach including derivative products. the social and economic stakeholders. The Bank also undertakes efforts to adapt widely used banking products and services to the interest-free banking system at the highest level of quality
006 Bank Asya 2011 Annual Report
Vision, Mission, Strategic Objectives
Strategic Objectives • To be one of the world’s leading interest-free banks. • To continue to be the participation bank with the highest brand value in Turkey. • To rank in the forefront of companies where highly qualified professionals would strive to work. • To increase market share. • To be a pioneer in the banking industry with new innovations. • To be the primary bank of its customers. • To sustain and increase support of social responsibility projects including social activities and sports.
To be a respected, trusted and effective bank that provides world-class service with the Vision products it develops.
To contribute to both shareholder value and the Turkish economy by developing modern banking services within the framework of interest- Mission free banking principles and satisfying customer needs and expectations with a “different solutions for different expectations” approach.
007 Presentation
Bank Asya sustained its upward Key Highlights momentum in 2011 and achieved growth of 18% in Total Assets, 22% in Cash Loans and 11% in Deposits.
Key Financial Highlights (Million TRY) 2010 2011 Change (%) Total Assets 14.513 17.190 18,4 Cash Loans (*) 11.060 13.452 21,6 Deposits 11.167 12.397 11,0 Shareholders’ Equity 1.942 2.137 10,1 Paid-In Capital 900 900 - Non-Cash Loans 9.227 9.349 1,3 Net Profit for the Period 260 216 -16,9
(*)Financial Lease (Leasing) is included
Branch and Personnel Information (Quantity) 2010 2011 Change (%) Number of Branches 175 200 14,3 Number of Personnel 4.266 4.542 6,5
17.190 13.452 14.513 11.060 11.609
8.109 8.355 6.260 6.381 18 % 4.610 22 % Total Cash 2007 2008 2009 2010 2011 Assets (Million TRY) 2007 2008 2009 2010 2011 Loans (Million TRY)
008 Bank Asya 2011 Annual Report
Key Financial Ratios (%) 2010 2011 Cash Loans/Total Assets (*) 76,69 78,63 Deposits / Total Assets 76,94 72,12 Cash Loans/Deposits (*)(**) 101,77 110,97 Capital Adequacy Ratio 13,33 13,31
(*)Non-performing loans were added to Cash Loans and Total Assets in gross terms. (**)Loan-To-Deposit Ratio is calculated by dividing Cash Loans by Deposits.
Bank Asya’s Composition of Assets (%) 2010 2011 Liquid Assets 18 16 Cash Loans 76 78 Fixed Assets 3 3 Other 3 3
Bank Asya’s Composition of Liabilites (%) 2010 2011 Deposits 77 72 Loans Received 4 9 Other 6 7 Total Shareholders' Equity 13 12
Bank Asya Income Distribution (%) 2010 2011 Net Profit Income 58 60 Net Commissions 24 24 Other Income 18 16
12.397 2.137
11.167 1.942
9.137 1.708 5.843 1.404 4.698 11% 854 10% Deposits Total Shareholders' 2007 2008 2009 2010 2011 (Million TRY) 2007 2008 2009 2010 2011 Equity (Million TRY)
009 Presentation
Bank Asya’s Bank Asya pioneered as a participation bank in Turkey in 2011 through its Market Position competitiveness and innovative strategy.
Annual Growth Rates (2010-2011)
30 30 30
28 22 21 20 18
Banking Sector Deposit Money Banks
Participation Bank Asya Banks
Total Assets (%) Loans (%)
19 9 14 13
13 12 6 11
4 4 2 2
Deposits- Funds (%) Number of Employees (%) Number of Branches (%)
38 34 13
10 22 8 7
Net Profit (%) 6 1
Non-Cash Loans (%) Shareholders' Equity (%)
-10 -11
-17
010 Bank Asya 2011 Annual Report
One step ahead of the sector With high competitive power
Comparison of Bank Asya with Other Participation banks
0,32 0,31 0,32
0,69 0,68 0,68
Total Assets (%) Deposits- Funds (%) Loans (%)
In 2011, Bank Asya continued its leadering 0,27 0,35 among participation banks in the total assets, disbursed loans, non-cash 0,65 0,73 loans and deposits.
Shareholders' Equity (%) Net Profit / Loss (%)
0,33 0,29
0,67 0,71
Number of Employees (%) Number of Branches (%)
011 Presentation
Identifying strategic priorities and acting Bank Asya’s according to the principles of sustainable Growth Strategy growth Bank Asya has continued to add value to the economy and society in 2011.
Effective Resource Management • Solid capital base • Capital adequacy ratio 13,31% (tier 1) • Rapid increase in deposits • 11% increase. in deposits • Longer average terms on deposits and • 20% liquidity ratio high liquidity • 10,1% return on equity • High profitability • 134% increase in loans from abroad • Loans from abroad
Effective Loan and Risk Management • 22%. growth in cash loans • Deeper customer relationships • Ranked 13th. in cash loans • More diversified loan portfolio • 75% increase in retail loans • Increase in retail loans and SME loans
Effective Product and Brand • AsyaCard DIT: Market leader in contactless cards Management • 20% increase in credit card turnover • Ranked 11th. in the sector with 1.9 million • Development of innovative products credit cards • Increase in brand awareness (sponsorship, • High profile with Bank Asya.1st League (football effective promotion, advertising) league)
Bank Asya forms its strategies around the Bank Asya is commited to being a model overarching goal of being one of the most bank along all the three axes of quality, important brands in the participation productivity and profitability. The Bank banking business line not only in Turkey but invests both in technology and in people in also in the entire the world. Conducting its order to make its proactive, customer- operations in line with the principles of oriented service philosophy a reality in all sustainable growth while pursuing this aspects. Bank Asya is a transparent primary objective, the Bank focuses on institution that continuously improves its creating more value not just for the business processes and systems and that economy but also for the society as a embodies the very best of corporate whole. governance principles and practices.
012 Bank Asya 2011 Annual Report
Financial Operational Personnel & Stakeholders Excellence Progression
• Sustainable growth • Increasing the use of • Increasing the • Maximizing customer and profitability technology knowledge levels of satisfaction • Strengthening the • Improving the employees • Offering diversified financial structure efficiency of business • Establishing effective solutions capable of • Targets about processes communications and addressing different subsidiaries and • Increasing the enhancing skills customer expectations affiliates effectiveness of risk • Disseminating • Ensuring sustainable management practice corporate strategy and divident payment to performanceoriented shareholders management philosophy
Bank Asya’s Competitive Advantages Bank Asya’s Strategic Orientation (2011-2015) • Leader among participation banks in total assets, deposits, Trustworthiness, stable growth, risk management, business continuity loans, and profitability and productivity are Bank Asya’s top strategic priorities. Having clearly • Dynamic, growing organization and explicitly defined its objectives in line with its corporate vision, Bank • Well-qualified, young staff Asya groups its strategies under four main headings in order to achieve effectively its objectives: • Customers' confidence in the Bank • Experienced in crisis management • Financial • Bank employees' sense of ownership • Operational excellence • Strong team spirit throughout the Bank • Stakeholders • Speed at technology implementation and priority in • Personnel & progression innovation In the same way, Bank Asya has laid out a five-year roadmap whose course is shaped by these strategies
013 Bank Asya finds pleasure of providing its customers gain while the Bank also gains by evaluating deposits into profitable investments to be used in the real economy. Investing in Effort Presentation
Achieving many firsts in the past Bank Asya 15 years, Bank Asya moves towards Milestones becoming a world bank that thinks both locally and globally.
1999 Asya Finans is subjected to the Banking Law. The company’s paid-in capital is increased to TRY 10 million.
2000 The number of branches reaches 25. 1997 The Asya Finans online branch goes into The number of branches reaches 15. service
1996 1998 Bank Asya commences operations on 24 The number of branches reaches 16 Asya 2001 October. Began its operations with an initial Finans launches the Asya Finans credit The company’s paid-in capital is increased capital of TRY 2 million. card. to TRY 20 million.
016 Bank Asya 2011 Annual Report
2011 2006 Bank Asya received the Business Continuity Management Systems The number of branches reaches 92. The Certificate from the British Standards company’s paid-in capital is increased to Instituition Bank Asya has become the first TRY 300 million. In an initial public offering, Turkish organization to receive this 23% of Bank Asya’s shares are floated; the certificate. Bank Asya has been selected company’s stock begins trading on the “The Best Commercial Bank of 2011 in Istanbul Stock Exchange under the ASYAB Turkey” Award by World Finance. ticker symbol. Paksit and DIT Pratik have been released for customer usage. Bank Asya won "The Best Call Center in Turkey" Award in the category of 100-499 seat-capacity call 2007 centers. Bank Asya has proved its quality receiving Customer Satisfaction The number of branches reaches 118. Management (ISO 10002) and Call Center Bank Asya stock is added to the ISE-30 Certificate (EN 15838) at the same time. Index as of January 2007 Bank Asya has become the first bank in 2002 Europe to have these two certificates at the same time. The number of branches The number of branches reaches 28. The reaches 200. Started a partnership with Company’s paid-in capital is increased to Bank Asya Emeklilik A.Ş. TRY 40 million. The ASYA24 ATM network 2008 goes live for customer use. Bank Asya becomes the name sponsor of the Turkish Football Federation 1st League. Contactless technology products AsyaCard With the vision of "to DIT and DIT Pratik are made available for the use of the Bank’s customers. become the leading 2003 bank in participation Asya Finans becomes a member of the VISA system. The number of branches banking in Turkey", reaches 43. The company’s paid-in capital Bank Asya achieved its is increased to TRY 60 million. Started a 2009 partnership with Isik Sigorta A.S. The number of branches reaches 158. target since 2006, the Bank Asya becomes a shareholder in tenth anniversary of its Senegal-based Tamweel Africa Holding SA. AsyaCard DIT receives the “Best Cash foundation date. 2004 Displacement Initiative” and the “Best New Credit Card Product Launch” awards. Bank The number of branches reaches 62. Alo Asya becomes a partner in Tuna GYO A.Ş. Although it is the newest Asya telephone banking services are launched. The company’s paid-in capital is participation bank in increased to TRY 120 million Turkey, Bank Asya has the 2010 most competitive products The number of branches reaches 175. DIT in the market, and, with 2005 Pratik is named “Best Mastercard Prepaid 200 branches and 492 The number of branches reaches 72. The Product in Turkey.” Bank Asya joins the company’s paid-in capital is increased to MoneyGram service network. AsyaAsist, ATMs, takes its place as a TRY 240 million Asya Finans is reorganized Çobanyıldızı and DIT Mobil were launched medium-sized bank in the as a participation bank and its name is for customer use. changed to “Bank Asya.” banking sector.
017 Presentation
Changes in Capital and Shareholder Structure During the Reporting Period
Bank Asya’s shareholder structure as of year-end 2010 and year-end 2011 appears in the table below
31.12.2010 % 31.12.2011 % Group A (preference shares) 360.000.000 40,00 360.000.000 40,00 Group B (not traded on ISE) 67.124.038 7,46 64.068.038 7,12 Group B (traded on ISE) 472.875.962 52,54 475.931.962 52,88 Total 900.000.000 100 900.000.000 100
Bank Asya has a broad-based, multi-shareholder, domestically-financed capital structure. As of yearend 2011, the Company had 236 partners who were direct owners of preference shares, excluding the publicly-held portion of the share capital.
Shareholding interests held by the Chairman and members of the board of Directors, CEO and Executive Vice Presidents Statements concerning the shareholding interests held by the Chairman and members of the Board of Directors, CEO and Executive Vice Presidents as shown in the Bank’s Shareholders’ Register as of 31 December 2011 are presented below. Ownership Title Name / Surname Areas of Resposibility In the Bank% Chairman Behçet Akyar Chairman 0,0003 Board Members Salih Sarıgül (1) Deputy chairman of the board 0,2056 Ahmet Çelik (1) Board Member 0,4800 Tacettin Negiş (2) (3) Board Member - İsmail Erol İşbilen (3) Board member and Member of Statutory Auditors - Hülagü Özcan (3) Board member and Member of Statutory Auditors - CEO Abdullah Çelik Board Member And CEO - Corporate/Commercial Loans, Small Banking, Top Executive Vice President Management Office Headquarters, Business and - Product development Coordination (4) Ali Tuğlu Information Technologies - Commercial Credit Allocation II, Corporate Credit Ali Fuat Taşkesenlioğlu (5) - Allocation Credit and Risk Monitoring, Construction and Real Erdal Erdem (5) Estate Fahrettin Soylu Banking Operations - Retail Sales Management, Retail Product Management, Card Payment Systems Marketing Ercüment Güler - Management, Administrative Affairs, Alternative Distribution Channels, Resource Development Budgeting & Reporting, Accounting & Bank Affiliates, Ahmet Beyaz - Purchasing, Corporate Communications Zafer Ertan Law, Credit and Risk Monitoring - Corporate/Consumer Credit Allocation I, Project Ahmet Akar - Financing Treasury, Financial Institutions, Investor Relations, Feyzullah Eğriboyun 0,0004 Human Resources and Education Statutory Auditors Ali Akbulut (6) Auditor 0,0002 Atif Bilgin Auditor 0,2411 İrfan Hacıosmanoğlu Auditor 0,7093
(1) Board Members Salih Sarıgül and Ahmet Çelik resigned from their duties as of 26. Jan. 2012; they have been replaced by Ali Çelik and Faruk İlk (2) Board Members Tacettin Negis resigned from his post as of 02. Feb. 2012, he was replaced by Mustafa Talat Katırcıoğlu (3) Not shown because the shareholding interest is less than 1/100,000. (4) Related departments is operatively connected to the General Manager. (5) Executive Vice Presidents Ali Fuat Taşkesenlioğlu and Erdal Erdem resigned from their duties as of 06. Jan. 2012 (6) Bank's Auditor Ali Akbulut resigned from his post as of 23. Feb. 2012, his seat was replaced by Mehmet Gozutok.
018 Bank Asya 2011 Annual Report
Names and Shareholding Interests of Shareholders Who Own Qualified Shares Shareholders who were registered in Bank Asya’s Shareholders’ Register as of 31 December 2011 and whose ownership of Group A preference shares entitled them to designate candidates to fill seats on the Board of Directors and Audit Committee as per Articles 32 and 49 of the Articles of Association are presented below.
No Name / Surname Group A share in the Bank (%) 1 Ali̇ Akbulut 12,70 2 Abdulkadi̇r Konukoğlu 5,58 3 Hasan Sayın 4,85 4 Tacetti̇n Negiş 4,31 5 Fi̇kri̇ Akbulut 4,06 6 Osman Can Pehli̇van 4,00 7 İbrahi̇m Sayın 3,52 8 Fatma Emi̇ne Berksan 2,50 9 Muammer İhsan Kalkavan 2,36 10 A. Selçuk Berksan 1,82 11 Mehmet Si̇nan Berksan 1,67 12 Aydan Aydın Sağlık 1,65 13 Fehi̇m Arıcı 1,55 14 Yavuz Eroğlu 1,45 15 Bülent Berksan 1,43 16 Mehmet Berksan 1,43 17 Ahmet Levent Berksan 1,14 18 Abdurrahman Kopuz 1,10 19 Hakan Cem Akbulut 1,00 Other (286 people) 37,42 Pending BRSA Approval 4,46 Total 100,00
019 Presentation
Changes in Capital and Shareholder Structure During the Reporting Period
Information on Titles and Shares of Shareholders Holding Preferred Shares
No Name / Surname Group A share in the Bank (%) 1 Ortadoğu Tekstil Tic. San. A.Ş. 10,9924 2 Forum İnşaat Dekorasyon Turizm San. ve Tic. A.Ş. 9,6299 3 BJ Tekstil Tic. ve San. A.Ş. 5,0000 4 Birim Birleşik İnşaatçılık Mümessillik San. ve Tic. A.Ş. 4,9398 5 Serra Turizm Ltd. Şti. 4,1667 6 Negiş Giyim İmalat ve İhracat A.Ş. 3,6506 7 Sürat Basım Yayın Reklamcılık ve Eğitim Araçları San. Tic. A.Ş. 1,8008 8 Galaksi Avrasya Sanayi Ürünleri Dış Tic. A.Ş. 0,5000 9 Asya Katılım Bankası A.Ş. 0,4167 10 Teksen Tekstil End. A.Ş. 0,2676 11 Linateks Tekstil İthalat İhracat San. ve Tic. Ltd. Şti. 0,2500 12 Aydınlı Hazır Giyim San. ve Tic. A.Ş. 0,2423 13 Koçkaya Motorlu Araçlar San. ve Tic. A.Ş. 0,0656 14 Karakaya Yedek Parça ve Otomotiv San. Tic. Ltd. Şti. 0,0449 15 Meltem Turizm İnş. Tic. A.Ş. 0,0210
Changes Made in the Articles of Association No changes were made in the Bank’s Articles of Association during 2011
020 Bank Asya 2011 Annual Report
In year 2011, Bank Asya had outstanding success, exemplified by the awards and Awards certificates received during the year.
The Best Commercial Bank of Call Center Certificate (EN Annual Report of National Banks 2011 in Turkey – World Finance 15838) Silver Award - ARC Awards Bank Asya has been selected as the Best In the fields of Customer Satisfaction, With the Annual Report prepared in 2010, Commercial Bank of 2011 in Turkey by incoming and outgoing calls, performance Bank Asya won the second (silver) prize in World Finance, one of the most respected management, recruitment, careers and the International ARC (Annual Report monthly business magazines that awards process of education, Bank Asya received Competition) in the category of the successful companies in finance and EN 15838 Customer Contact Center National Bank Annual Report issued in business every year. Quality Management Certificate, an local languages. international standard for call centers with
STP Excellence Award- Citibank special conditions.
The technological equipment and Customer Satisfaction effectiveness of service of Bank Asya is Management Certificate confirmed by one of the world's leading (ISO 10002) banks. In 2011, Bank Asya awarded by CITIBANK with the STP Excellence Award. Timely and adequately responding to customer needs and expectations, Bank BSI Business Continuity Asya received the Customer Satisfaction Management Certificate Management ISO 10002. Bank Asya became the first Turkish organization to receive the Business Continuity Certificate from the British Standards Instituition.
Best Call Center in Turkey In October,2011, Bank Asya received “The Best Call Center of Turkey Award” among the call centers with a capacity of 100-499 seats in Istanbul Call Center Awards held by the IMI Conferences.
021 Presentation
Message from the Chairman
The leading participation bank in Turkey
Dear Valued Shareholders
Decrease of the effects of the global crisis resulted in an optimistic beginning to the year 2011 in the markets but the developed countries have failed to meet the expected performance during the year.. However, developing countries including Turkey have continued to create value through their well established economies.
022 Bank Asya 2011 Annual Report
"In line with new strategies and plans of growth, Bank Asya aims to increase the number of branches to 300, and the number of credit cards to 3 million as well."
With a 9% growth in 2010, Turkish As is the case in the rest of the world, I would like to thank to the diligent Bank economy recovered the majority of the participation banking in Turkey continues to Asya staff who have contributed highto the effects of the global crisis and sustained its develop and the number of new products, Bank’s progress through their dedicated rapid growth trend during the year 2011. conforming with the interest-free financing efforts with the team spirit and a “we” Despite the recession in world economies standards, increases day by day. sense. due to the recession in developed countries and debt crisis in European In year 2011 during which the bank profits Also, I would like to thank to the former countrieis, Turkey has grown by over 8% declined, Bank Asya sustained the members of the Board of Directors and during year 2011and continued to be profitabilty thorugh orienting its strategy to Audit Committee, who resigned at the distinguished with this positive use itscapital more effectively, focusing on beginning of 2012 after serving for many developments. collecting participation funds and lengding years in various positions in Management activitiesas its mainbusiness model. With and Supervisory Boards of the Bank. Although the precauitons taken by the the mindset of developing new strategies, Central Bank of Turkey in order to maintain Bank Asya has underwent a year of high Finally, I would like express my gratitude to financial stability and to reduce the current performance. our solution partners who had great account deficit resulted in a decrease in the contribution to Bank Asya, to our valued growthrate, the growth is expected to Despite its short history of 15 years, Bank shareholders who have supported our continue. Asya has been well known by its high management and to our customers who competitive power and innovative aspects, always sustain their loyalty to the Bank. The European Debt Crisis and recession recognized with its new prodcuts and expectations have affected the profitability servies in interest free banking area and I firmly believe that, we will provide Bank of the companies listed in ISE negatively therefore, it has strengthened its position Asya toachieve many successful periods all and resulted in loss of market values of as the leading participation bank in Turkey. together. these companies. Therefore, the ISE 100 index value decreased by 21% during year Bank Asya aims toincrease the number of 2011. the branches to 300, and credit cards to 3 million as well until 2015 in accordance The precauitons taken by regulatory with its new strategies andgrowth plans agenciesreduced the profit margins in aiming to provide faster and higher quality Turkish banking sectors. However, the services ineverywhere in Turkey with its sector has continued to increase its asset expanding network. size, thanks to powerful structure of the Bank Asya will continue its organic growth sector. Comparing the performance of the Behçet Akyar participation banks to thetotal of the during year 2012 in accordance with this banking sector, participation banks goal, will increase its investments in foreign Chairman of the Board of increased their share in total assets and countries and will continue to operate with Directors funds collected. its vision to be a global model bank.
023 Presentation
Message from the CEO
Time for expansion abroad…
Dear Shareholders,
We have passed a year experiencing a differentphase of the global economic crisis. The global economic crisis which emerged mainly in the housing loans and banking sector in 2008 turned into apublic finance crisis through increasing public debt. And in year 2011, we have faced political authorities who failed to demonstrate a common will to overcome the crisis.
024 Bank Asya 2011 Annual Report
Bank Asya continued to grow in 2011, increasing total assets by 18% to TRY 17,2 billion. Therefore, Bank Asya has maintained its position as the biggest participation bank of the past 6 years.
Although structural changes are not Additionally, the implementation of the Individual loans have reached TRY 1.630 expected. Until the elections in USA in monetary and banking policies to control million with an increase by 75% November 2012, FED announced that the foreign risk sand current account deficit andasignificant increase has been achieved interest rates will not beincreased until the have lowered the sector's profitability in SME loans. As a result, a diversified loan year 2014 and monetary expansion will through increasing the costs reduced portfolio has been created providing the continue if required. return on equity ratio to 15,5% from 20%. opportunity to serve much more The combination of inflation, high interest customers. On the other hand, the economic outlook rates and devaluation of TRY increased the has become more unpredictable in Europe. cost offinancing. Also, due to the impact of The average maturity of deposits, which is As political authority had diffculty in the global uncertainty, the banking sector a major problem ofthe Turkish Banking demostrating stability in managing public experienced an increase in cost of foreign Sector, was 64 days as of September 2011 finance, public debt become higher. borrowing. in the sector. On the other hand, Bank Asya has extended the maturities of the Today even if the governments Despite the negative outlook summarised funding succesfully as one of its main demonstrate agreater stability, there is a above, Bank Asya continued to grow in strategiesand increasedthe average significant doubt on the settlement of the 2011, increasing total assets by 18% to maturity of the fundscollected to 132 days. public debt due to the difficulties in TRY 17,2 billion. During the past 6 years, sustaining a sufficient growth. the Bank has maintained its position as the As a resultof the innovative efforts to in biggest participation bank. During this order to diversify the financingstructure Turkey, started to year 2011 with a strong which is one of the main problems of the credit demand, thank to the rapid growth period, Bank Asya has given financial support of TRY 22,8 billion to the real participation banks, fundings from abroad based on private sector investments. increased by approximately134% and Lower Government borrowing requirement economy through lending activities. With its profitable and consistent growth strategy, reached to TRY 1.458 million through the resulted in a lower investment in public use of new methods of financing. In sector bonds and the banking sector Bank Asya's net profit after tax was TRY 216 million by the end of 2011. addition, the Bank completed the required funded private sector more. steps for the first time issueance of Sukuk. Hence, the loans as 59% of national Since March 2011 as the date of our As per existence of favorable conditions, income in 2010, increased to 67%of assignment, in order to use the Bank's Sukuk issuance amounting to USD 300 national income in in 2011. These capital more efficiently new strategies and million is projected within the year 2012. circumstances have led a decrease in policies have been implemented rapidly. In capital adequacy ratio from 19% to 16.5%. this respect, spread of the credit riskto the base has been targeted and the proportion of the Individual and SME loans in the total loan porftolio has been increased.
025 Presentation
Message from the CEO
A year, structure of fast and quality service to the customers 75% Retail loans increased by 75% and Bank Asya won awards for many innovative Despite the recent economic conjuncture, products developed, especially for DIT card Bank Asya continued its organic growth reached to TRY 1.630 million. and continued to lead the sector with the with 25 new branches, raising the total use of contactless technology, trough the number of branches to 200. With more transportation and campus projects than 500 ATMs in total and with the efforts invarious cities. With in this context, for serving to a larger customer base, Bank Karamanas transportation project and and Asya increased the number of individual Gediz, Zirve, Suleiman Shah and and customers by 16% and reached a total of Duzce University as campus projects are 3.3 million customers. added to the projects of Bank Asya with in the current year. With a total number of New gold-based products have been 1.900.000 credit cards, Bank Asya has served in order to meet the customer became one of the majörplayers players in demands especially for gold emerged the sector. parallel to the increase in commodity prices and to invest our customers’ savings. Continuing contactless technology investments in 2011, Bank Asya has New products for the trade of scrap gold launched “DIT Mobil”which converts the and gold in grams have been designed and cellular phone into a contactless payment implemented. Studies on gold based instrument regardless of GSM operator and participation accounts have reached to the launched “Cep-T KGS” in cooperation with final stage. As a result of those efforts, gold Turkcell. accounts increased by 470% reaching 10 tonnes of gold reserves. One of our major investments in the field of technology are implementation of the CRM applications. These applications will strengthen our understanding of customer- oriented service, will offer better services to our customers, and contribute to the Bank's profitability and efficiency.
026 Bank Asya 2011 Annual Report
Our Bank’s financial support to the real economy through lending activities has been TRY 22.8 Billion through within the current year.
Efficient use of capital and a credit portfolio spread to the base
On the other hand, in accodance with our Bank Asya orientsabroad in order to For this purpose, Bank Asya contributes new strategies and in order to be closer to operateinterest-free banking activities not various sponsorship and social our customers and to provide faster and only within the country but also in responsibility projects. higher quality services, we have increased international arena. In 2009, Bank Asya the number of our regional offices from 2 to initiated the process of overseas expansion Bank Asya supports worldwide 9 and we have increased our support to in Africa with Tamweel Holding. and will organizations such as International Turkish our customers in terms of organizational continue in the next periods. Olympics and TUSKON's international structure. meetings, and also sustains its support to Bank Asya will expand its activities in The First League of football since year In 2011, our Bank strengthened its Africa, and will start its interest-free banking 2008. outstanding success with many awards operations in Northern Iraq through and certificates. opening a branch in Erbil in the near future. I would like to thank to my colleagues who As being the first bank obtaining the contributed to the successful work of Bank One of the most respectful economic approval fort he application for a Asya and provided a sense of belonging. Magazines World Finance selected Bank representative office in India, Bank Asya will Asya as "The Best Commercial Bank of I also want to thank to our shareholders start its operations in India in the near who always supportour managementand 2011" and Citibank awarded Bank Asya future. with the STP Excellence Award, which to our customers who accept Bank Asya measures efficiency of business flows. With all these features, Bank Asya has as their own bank and toall stakeholders become one of the most attractive banks who played an important role in the Bank Asya became the first Turkish for foreign investorsand one of the banks success of Bank Asya. organization to receive the Business with the highest rate of public quotation in Continuity Certificate from the British Turkey. Standards Instituition. Bank Asya received “The Best Call Center of Turkey Award” Bank Asya not only present services in and "Customer Satisfaction Management banking area in the country, but also feels ISO 10002". Bank Asya has become the responsiblity for the improvement of the first bank in Europe to be awarded these social community'srelations with the two certificates at the same time. environment, art and sport.
Abdullah Çelik Board Member and CEO
027 Embracing the responsibility of being the first participation bank opened to the public, Bank Asya acts with transparency, one of the foundational values of the Bank Clear and Transparent Presentation
Altough there was a positive start to the year Macroeconomic of 2011, the global economy could not achieve Overview and expected stabilization due in part to U.S’s Banking Sector fluctuated employment and growth rate and debt crisis experienced particularly in the Eurozone
International Developments
As a result of diminishing effects of global Greece’s nearing bankruptcy, Germany’s crisis in 2008, and encouraging forecasts insistence to compensate the entire 1,29 about recovery in housing market and in recovery cost of Greece through tax The EUR/USD exchange rate, which growth rates in the U.S, performing positive incomes from the public, and through the start to the year 2011, the global economy banks which played role in borrowing stood at 1,44 at the first two quarter could not achieve the expected actively, and the lack of a considerable plan of 2011, slid below 1,29 as of year-end stabilization due in part to U.S’s slightly by European leaders during this crisis, 2011 due in part to the debt crisis fluctuated employment and growth rates manipulated financial markets to lose and debt crisis experienced particularly in confidence in Europe, inevitably leading to the Eurozone an increase of uncertainity in the economy. Increasing rate of doubts about Besides, disagreements during the budget sustainability of the European Union, also planning in U.S, led to postponement in affected borrowing rate of the countries rise of the debt ceiling, and resulted in a adversely, Italy and Spain werereported to decline in long term-debt note of the U.S have the highest levels of debt in the from AAA+ to AA+ as decided by S&P financial markets. The debt crisis in the Eurozone, began in The EUR/USD exchange rate, which was Greece during the first quarter of 2010, and at 1,44 during the first two quarters of continued to spread in 2011 with the 2011, slid below 1,29 as of year-end 2011 addition of Italy and Spain. During this due in part to the debt crisis. Compared to period, the CDS (Credit Default Swap) the year 2010, after implementing austerity spreads, which are an indicator of riskiness policy, especially in the Eurozone, the soverign bonds of countries that were global economy set forth to monitorize impacted by the debt crisis rose lower growth rate as of year-end 2011 continuously and led to a signnificant increase in the borrowing cost of Eurozone
GDP Growth Rate
8 7,3 6,6 6,4 6 6 5 4,3 4,5
4 3 2,7 3 2,6 2,2 2 0,6 -0,5 0
2008 2009 2010 2011 (T) 2012 (T) -2 -3,4
-4 Developed Countrie Developing Contries World
030 Bank Asya 2011 Annual Report
Developing Countries are on Path
Espcially in the latter half of the year, the Perceived as a safe haven, gold prices Gold finished the year of 2011 at USD U.S economy measured higher records reached USD 1,900 per troy ounce in 1,550 with a 13% increase. Oil prices and data over forecasted scenario, which August 2011, but began to decline during started the year at the level of USD 90,00 was one of the most important the last quarter of the year. There was a per gallon and registered at USD 108,00 as development in the year 2011. Country rise in the positioning margins of forward of year end 2011 after challenging period CDS Spreads While S&P 500 Index gold sales in addition to the appreciation of which contracted by the Arabian Spring, confined the year with a 0,6% increase, the US dolar. developments in Europe and crucial economy registered a decline of -15% in conflicts between Iran and the West. Germany Dax, -17% in Brazil Bovespa, -21% in China Shanghai Comp. and -24% in ISE 100 index. The debt crisis in the Country CDS Spreads Eurozone, inflation rates and a slump in the growth rates in Asia shifted the global 12.000 Turkey capital flow direction to the U.S. Greece Spain On the other side, sustainable policies 10.000 implemented by the FED, and the Portugal Italy trustworthy and appreciated structure of 8.000 U.S institutions provoked the U.S economy to decouple from other countries. Debates about this favorable decoupling, and the 6.000 continual uncertainity throughout the year
2011, provided a rise in the price of gold 4.000 stocks considered the safest haven, alongside U.S stocks and consent stocks. 2.000 Despite an impressive beginnig, the commodity market ended with a fall as of year-end 2011. After record highs in 0 purchases by funds that chase high 02.09 05.09 08.09 11.09 02.10 05.05 08.10 11.10 02.11 05.11 08.11 11.11 returns, the commodity prices began to drop caused by decline in the long term portfolios of speculators and the slowing Gold and Oil rate of recovery in the U.S and forecasts for global demand deficit due to the debt 2.000 Gold Oil (right axis) 140 crisis in the Eurozone. 1.900 120 The price of copper measured with a fall in 1.800 response to the reduction in Chinese 1.700 100 import volumes, whereas cotton and wheat 1.600 prices started to decrase on account of 80 increase in supply in the agricultural 1.500 market, though were increasing levels 60 during the beginning of the year. 1.400 1.300 40 1.200 20 1.100
1.000 0
01.10 03.10 05.10 07.10 09.10 10.10 01.11 03.11 05.11 07.11 09.11 10.11
031 Presentation
Macroeconomic Overview and Banking Sector
Domestic Developments
With a growth rate of 9% in 2010, the Obtaining sustainable fluctuations Imports volume registered at high levels in Turkish economy left behind the negative throughout the year, the manufacturing response to higher domestic demand and effects of its past crisis, and also continued industry capacity utilization rate, was a rise in commodity prices while exports its rapid growth path through the year revised from a recorded level of 77% on fluctuated within a limited range due to 2011. Besides measured recession, October 2011 to 75,5% as of year-end drop in foreign demand. As a result of the particularly in developed countries, and in 2011. On the other hand, foreign trade increasing trade deficit, the current balance contrast with slowing global economy indicators figured out export volume as of transactions registered USD 65,1 billion resulting from debt crisis experienced in USD 122,5 billion. A 20% increase during at the end of first ten months of 2011. After European countries, Turkey’s economy the January-November period, while import declining sharply in 2010, thanks to the maintained to decouple favourably by its volume reached to USD 220,2 billion a impressive growth rate of the economy, the respective growth rate at 12%, 8,8%, 8,2% 33,5% increase. unemployment rate continued to fall and in the first three quarters of the 2011. reached to the lowest level of recent years. In order to protect stability in financial markets and to decrease budget deficit, Industrial Production and Capacity Utilization (%) the Central Bank of Turkey implemented Capacity utilization Rate Seasonally and Calendar Adjusted Industrial Production (Annual Base) monetary and fiscal policies especially in 20 78 the last period of the year. These policies caused growth rates to decelerate, and 77 15 increased expectations of lose its 76 momentum for upcoming quarter. 75 Looking at the structure of the growth rate, 10 74 increases in household consumption, 73 which contributed substantially to the 5 growth rate were at highs throughout the 72 year. Growing by 12,2% in the first quarter of 2011, settled households increased their 0 71 consumption by 8,8% and 7% increase in 01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11 12.11 the second quarter and third quarters respectively. After a rise of 13,1% in 2010, industrial production maintained its rapid growth at Foreign Trade and Cuurent Deficit (USD Million)
begininnig of the year but lost some of that 25.000 Export Import Current Deficit (right axis) 12.000 momentum after the second quarter of the year. As a consequence, average growth 10.000 20.000 rate of industrial production stood at 9,4% during the first ten months of 2011. 8.000 15.000 6.000 10.000 4.000
5.000 2.000
0 0 01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11
032 Bank Asya 2011 Annual Report
Sustaining a rapid growth rate in 2011, in contrast to the slowing global economy, the Turkish economy maintained to favourable growth.
GDP Growth Rate (%) (in constant prices) Central Bank of Turkey Interest Rate
14 Borrowing Lending Weekly Repo
12
10
12 8 9 8,8 8,2 6
4
2
2010 2011/1 2011/2 2011/3 0 -4,9 2.10 7.10 0.10 4.11 5.11 8.11 9.11 0.11 1.11 0 1.10 0 0 3.10 0 4.10 0 5.10 0 6.10 0 0 8.10 0 9.10 1 1 1.10 1 2.10 0 1.11 0 2.11 0 3.11 0 0 0 6.11 0 7.11 0 0 1 1 1 2.11 2009
The unumployment rate fell to 8,8% in Unemployment (%) October, down from 11,9% in January 2011, while the non-farm unemployment 15 Unemployment Non-farmed Unemployment rate fell from 14,7% to 11,3% in the same period. The number of employed individuals rose to 24,7 million up from 14 22,5 million while the number of unemployed fell from 3 million to 2,4 13 million. Compared to CPI at 6,40% and PPI at 8,87% in 2010, CPI rose up to 10,45% 12 and PPI stood at 13,33% as or year-end 2011. 11 As a consequence of the overpowering effects of the finalization tax regulations 10 which began to be implemented in 2010, the inflation rate tended to decline at the 9 first quarter of 2011. In contrast to decrease in the first quarter of the year due 8 to fall in food prices, the inflation rate started to move up again as a result of a 01.110 2.11 03.110 4.110 5.11 06.110 7.110 8.11 09.11 rise in food prices in the second quarter of the year. Consequently, inflation rate maintained to incraese in the second half of Inflation the year in response to depreciation of Turkish liras caused by a drop in global risk 20 CPI PPI Core Inflation (I) appetite.
Developments in the exchange rate were 16 influential on basic commodity prices, while service prices kept its steady position 12 during the year. Despite a measured decrease in international commodity prices, producer prices tended upwards especially 8 due to significant effects of the exchange rate. Despite losing some of its momentum 4 towards the end of year, higher domestic demand throughout the year played an important role on the inflation rate which 0 higher than anticipated. 01.110 2.11 03.11 04.110 5.11 06.110 7.11 08.11 09.111 0.11 11.11
033 Presentation
Macroeconomic Overview and Banking Sector
As a part of its monetary policy and to In this period, as result of regulating foreign Meanwhile, to overcome the negative prevent the economy from getting exchange purchasing tenders, the CBT effects of squeezing liquidity, the CBT overheated relative to the deepened debt strengthened its foreign exchange reserves declared a decrease in the required reserve crisis in European countries in 2010 and and provided services to satisfy the needs ratio. On October, by increasing the worsening perceptions for global risk for the Turkish lira caused by “hot money” borrowing. Interest rate, CBT expanded the apetite as of August 2011, the Central flows. interest gap upwards again to limit the Bank of Turkey (CBT) expanded the interest inflation rate’s rising trend which was gap downwards to decrease short term As developing countries registered capital especially caused by depreciation of capital flow while managing obligatory outflows in response to deteriorated global Turkish liras. provisions actively. economies and shrinking global risk apetite, the Central Bank of Turkey focused With financial stability as its primary to limit domestic demand from sloping objective, the CBT withdrew capital from downward by a decline in indicator interest markets by increasing the required reserve rate. ratio, to limit decoupling between foreign demand and domestic demand while managing weekly repo to overcome squeezing liqudity in the markets.
ISE-100
75,000
70,000
65,000
60,000
55,000
50,000
45,000 01.10 02.10 03.10 04.10 05.10 06.10 07.10 08.10 09.10 10.10 11.10 12.10 01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11 12.11
Exchange Rate
1,40 DOLLAR/TRY
1,40
1,40
1,40
01.11 02.11 03.11 04.11 05.110 6.11 07.11 08.110 9.11 10.111 1.11 12.11
034 Bank Asya 2011 Annual Report
Performing impressively throughout the year, participation banks increased their market share in total assets and deposits
Within 2011, ISE 100 index recorded at the Furthermore, negative expectations for In addition, the CBT focused to limit highest 70,335 and at the lowest 48,600 global affairs and realizations of the increases in the foreign exchange rate by after starting the year at the level of 66,004. deepening debt crisis in some of European direct interventions at the last term With a 21% decrease during whole year, contries, resulted in a depreciation of the of 2011. Index completed 2011 at 51,267. Euro and domestic currencies in Especially in the second half of 2011, as developing countries against USD. In According to middle term program one of examples ISE 100 Index, markets Turkey, perceived as a safe haven, between 2012 and 2014, GNP growth rate impacted negatively as a result of capital increasing demand in USD by foreign funds is expected to be set at 4% in 2012 and at outflows in developing countries which mostly constructed with investment 5% in both 2013 and 2014. Due to caused by doubts about global growth and portfolios, caused Turkish Liras to perfom forecasts for the employment rate to rise worsening risk perception. The debt crisis weakly against USD gradually and exports to grow higher than in Europe and predictions for recession imports, current deficit is anticipated to took its toll on ISE companies’ profitability After purchasing regulated foreign decrease. As a consequence, the inflation and brought about a depreciation of their exchange tenders from the beginning to rate is expected to return to single-digit stocks value. the midldle of the year, the CBT ceased numbers and to be balanced at the purchasing in July 2011 and began in level of 5%. Begining the year 2011 at level of 1,50 August to regulate foreign exchange sales foreign exchange rate, followed moving tenders to provide and expand liquidity in upwards throughout year, reached an all the economy. time high at 1,92 with significiant increase in its momentum after August 2011.
Middle Term Program 2011 2012 2013 2014 GDP (TRY billion, current prices) 1.281 1.426 1.572 1.733 GDP (USD billion, current prices) 766 822 888 952 GDP Growth 7,5 4,0 5,0 5,0 Unemployment Rate (%) 10,5 10,4 10,2 9,9 Exports (FOB) (USD billion) 134,8 148,5 165,7 185,1 Imports (CIF) (USD billion) 236,9 248,7 272,5 295,9 Exports/Imports (%) 56,9 59,7 60,8 62,6 Current Account Balance (USD billion) -71,7 -65,4 -67,0 -67,1 Current Account Balance / GDP (%) -9,4 -8,0 -7,5 -7,0 % Change in Year-end CPI (forecast) 7,8 5,2 5,0 5,0
035 Presentation
Macroeconomic Overview and Banking Sector
1,2 trillion Developments in theBanking Sector Total assets in the banking sector According to analysis completed in The share of participation bank assets in December 2011, total assets in the the banking sector total assets moved reached TRY 1,2 trillion while deposits banking sector reached a level of TRY 1,2 upward from 4,31% in 2010 to 4,61% as were set at TRY 696 billion as of year trillion while deposits were set at TRY 696 of year-end 2011. The share of end 2011 billion. In addition, loans registered TRY participation bank deposits in the banking 701 billion in the banking industry industry rose to 5,64% in December 2011, up from 5,36% in 2010 while loans share in Looking at improvements of participation the banking industry stepped backward banks through 2011, participation bank from 6,03% in the previous year to 5,93% assets increased to TRY 56,2 billion and in 2011 deposits reached TRY 39,2 billion as volume of loans was recorded at TRY 41,5 billion. Comparing performance of participation banks to the rest of the banking industry, participation banks increased their share in deposits and total assets in the banking industry.
036 Bank Asya 2011 Annual Report
The share of participation banks total assets increased by 4,6% in 2011, up from 4,3% in 2010.
Assets Improvement (TRY million) Year Participation Banks Change (%) Deposits Banks Sector Participation Banks /Sector (%) 2007 19.445 41,4 543.272 581.606 3,34 2008 25.770 32,5 683.823 732.536 3,52 2009 33.628 30,5 773.357 834.014 4,03 2010 43.339 28,9 932.371 1.006.667 4,31 2011 56.153 29,6 1.119.915 1.217.711 4,61
Deposits Improvement (TRY Million) Year Participation Banks Change (%) Deposits Banks Sector Participation Banks /Sector (%) 2007 14.834 33,0 342.031 356.865 4,16 2008 19.045 28,4 435.554 454.599 4,19 2009 26.711 40,3 487.909 514.620 5,19 2010 33.089 23,9 583.947 617.037 5,36 2011 39.220 18,5 656.281 695.501 5,64
Loan Improvement (TRY Million) Year Participation Banks Change (%) Deposits Banks Sector Participation Banks /Sector (%) 2007 15.367 46,3 279.868 304.909 5,04 2008 20.190 31,4 364.592 397.460 5,08 2009 25.372 25,7 382.334 422.270 6,01 2010 32.412 27,7 488.650 537.492 6,03 2011 41.526 28,1 635.523 700.706 5,93
037 Presentation
Bank Asya’s Increasing its current assets by 50% Activities in 2011 during the year, Bank Asya ranks first with its rate of current assets in the sector.
Accomplished the year with Annual collected funds 12.397 11% growth in assets... trend (Milion TRY) 11.167
Bank Asya, finished the year 2011 9.137 dominated by importance of deposits growing incrementally as a consequence of global economic shrinkage, at the point of TRY 12,4 billion in assets with 11% growth 5.843 compared to the previous year. 4.698
2007 2008 2009 2010 2011
Bank Asya ranks first with Annual total current account 3.121 the rate of increase in current trend (Million TRY) acoounts within the sector Succeeded in 50% growth to TRY 3,121 2.081 million throughout 2011, Bankasya 1.593 prolonged its leadership in sector with the rate of current assets in total assets while 1.007 entire banking industry accrued with 23% 888 Growth of the funds collected on growth in total current assets. the basis of customer groups As of 2011, Bank Asya, particularly thanks to an upward trend in retail and SME’s 2007 2008 2009 2010 2011 customers volume, continued to increase the funds collected on the basis of its customer group, The Bank also focused on Continued its first place in Annual Total Participation 9.086 9.276 taking measures against small slices of annual total participation account trend (Million TRY) sources in line with its target to generate accounts 7.544 long-term, multi-partnered structure of fund Enhancing total participation accounts at Gold Account TRY 9,276 million in 2011, Bank Asya, continued its first place in interest-free 4.836 Besides economic contraction experienced banking industry. in Eurozone, and increased demand for 3.810 gold, Bank Asya’s gold account reserves vaulted 9,948 kg with an impressive increase of 470% up from 1,745 kg at the begining of the year. This took place in response to individual investors headed towards gold. 2007 2008 2009 2010 2011
038 Bank Asya 2011 Annual Report
Strong and healthy growth in line with strategic targets
Corporate Banking
Customers as long-term Main categories of products Bank Asya provides a comprehensive business partners... offered to corporate clients range of services to meet the needs of its corporate banking clients, from lending and In the constantly changing and fiercely • Current Accounts cash management to foreign trade and competitive environment of financial • Participation Accounts investment products, with its extensive markets, Bank Asya strives to meet the • Cash Management lineup of products, professional asset needs of its customers that it sees as management teams, advanced technology • Cash Loans long-term business partners. The Bank systems and diverse distribution channels. serves each client with multidimensional • Non-Cash Loans The Bank plans to develop fast-paced and projectbased solutions in a timely manner. • Foreign Trade Finance comprehensive offerings while remaining The bank conducts corporate marketing • Insurance Services committed to its corporate values and activities in line with its customer-oriented • AsyaCard Business risk-management policies in accordance banking principles. with its objective of “supporting the Bank Asya has six corporate branches Bank Asya’s customer-focused producers.” (three in Istanbul and one each in Izmir, marketing policy principles: Antalya, and Ankara) and employs 86 • Conducts frequent customer visits in specialist personnel in these branches as order to keep abreast of their current well as 11 expert employees in the concerns and to respond to their needs Headquarters Corporate Marketing with appropriate solutions, while Department. The Bank provides more maintaining regular communications, effective and more efficient financing • Takes action in a timely and effective facilities to its clients and supports manner when dealing with customer entrepreneurs with its network of dedicated requests, staff. • Responds to customer requests clearly The marketing network includes the in order to achieve customer corporate marketing personnel employed satisfaction and reassures clients to in the branches and is also strategically ensure the continuity of business supported by the Headquarters Corporate relationships, Marketing Department. This organizational • Develops new products and services in structure allows the Bank to be closer to line with customer expectations and clients and to review and resolve customer serve clients with an extensive product requests in a timely fashion. lineup, • Is open to customer suggestions and As the pioneer of many groundbreaking restructures business processes practices in participation banking, Bank accordingly in case of need, Asya operates on the principle of self- • Increases its presence within the sector improvement with respect to new customer by adding new customers to its portfolio needs that may arise as a result of an while enhancing relationships with evolving and changing economic existing customers, environment. The Bank analyzes customer • Offers products and services that are needs appropriately, conducts effective efficient, profitable and competitively marketing activities, and assesses loan priced, applications in accordance with the principles of security, liquidity and • Structures its organization in line with profitability. corporate objectives and generates results.
039 Presentation
Bank Asya’s Activities in 2011
Commercial Banking
A master in project finance Remarkable growth in financial Regional Offices, timely and leasing... more efficient banking Institutionalizing sophisticated experiments While providing financial support to its During the year 2011, seven new Regional gained from projects, specializing in commercial banking customers requsition Marketing/Allocation Offices in additon to project finance, associating with each to increase their investments, production the South East Anatolia and Aegean project closely, Bank Asya, having financed capacity, profitability and employment Regional Offices, were established to significiant projects since its foundation, during 2011, Bank Asya, thanks to its operate banking activities. aims to enhance its efficiency in its international reputation, also furnishes profitability and risk management policies. non-cash services to companies in need of In conjuction with establishment of the For this purpose, the Project Finance letters of guarantees, counter guarantees, Istanbul Europe I, Istanbul Europe II, Department, employing a dedicated expert letters of credits, avalization etc. arising Istanbul Anatolia, Ankara, Marmara, Konya team in project finance was established from project conditioned with commitment, and Black Sea offices, Regional Offices within the Headquarters or foreign trade transactions. commenced to conduct all loan and Improvements in financial leasing, as one of banking transaction processes of SME Profit/Loss sharing projects primary objectives on marketing agenda customers within allocated credit limits. As one fundamental instrument of throughout the year 2011, boosted By constructing Regional Coordination and interest-free banking, profit-loss sharing incomparably to the previous years’ volume Product Portfolios, the SME Banking Dept projects are analysed and prosecuted by and as a consequence Bank introduced was underwent for a change in its the Project Finance Department. Bank with remarkable leasing portfolio. organizational structure. Asya has different types of profit-loss Servicing an extensive product line As a result of the increase in the number of sharing projects, of which analysis and including cheque books, POS, tax, SSI and regional offices and self-authority for meetings still continue. Yet already, one invoice payments, wage payments, allocation, the Commercial Banking profit-loss sharing project, of which the sale insurance services and internet banking, Department was merged out of two and contsruction processes are expected Bank Asya, with advanced technology and different departments in the previous to be completed within two years, was practical solutions, also aims to improve its periods. designed and loaned by the Project service network in a pioneering manner to Finance Department. achieve customer satisfaction within pure Additionally, sectoral reports complied with competitive market. results of Project Finance Department’s Besides aiming to operate banking services analysis of developments in the sector, and products in accordance with sound were periodically composed and submitted policies and marketing strategies in order to Bank Asya’s personel. to increase profitability and ensure In different periods within 2011, detailed continuity of business relations, Bank Asya reports about the Housing Sector, the contributes to generate and improve Health Sector and the Tourism Sector were commercial portfolios and marketing issued and distributed to personnel orginazation.
040 Bank Asya 2011 Annual Report
Bank Asya increased the number of its active SME customers with a dedicated credit line to 63,000 in 2011, up 40 percent compared to 2010.
SME (Small-Medium sized Enterprises) Banking
Bank Asya’s “Çobanyıldızı” The primary objectives of Small Business Developed by Bank Asya continued to give continues to shine Banking at Bank Asya are to renew existing customers a cost advantage by helping financing packages, develop new financing them to lower their operational costs while Serving the Microbusiness and SME packages, and become the solution enhancing their ability to make collections. segments and supporting these clients partner of more SMEs under the The Direct Debiting System (DDS) makes it with loan and cash management products Çobanyıldızı brand. possible for firms to automatically receive and sercives, Bank Asya continued to payment for goods and services they sell surge the share of SME segmented "To this end, taking a close interest in SME to their dealers and regular customers. customers in its total customer portfolio customers Bank Asya organized during 2011. “Çobanyıldızı Meetings” participated by An alternative to DDS is a cash regional SME customers in various management product known as the Virtual Bank Asya supports the investments, Anatolian provinces such as Malatya, Commercial Card, which allows payments business growth projects, production Adana, Şanlıurfa, Kayseri and Konya in and collections between a wholesaler/ expansion initiatives and all foreign trade order to better understand the concept of franchiser and a retailer/dealer exclusively. transactions of its microbusiness and SME "Çobanyıldızı" and our bank and to clients through lending. Bank Asya also promote products. Bank Asya also plans to As of 2011, Bank Asyasupports its SMEs offers its customers cash management continue to hold Çobanyıldızı Meetings in clients with loan and cash management services including Direct Debiting System, different provinces through 2012." products under brand of The Çobanyıldızı Commercial Card, AsyaAsist Card, Project, which represents a new approach Checkbook, POS devices, Tax and Social "Providing support to businesses in to small business banking, Bank Asya aims Security Payment, Bill Payment, Salary unexpected / emergency situations when to be the primary bank in Microbusiness Disbursement, Insurance Services and users require medical, legal and financial and SME segments and to establish long Online Banking. consultancy services, the AsyaAsist Card term relationships with its small business reached 43,000 active users in 2011, a 16 clients, and to become their advisor bank. As a result of sound marketing policies % increase on the previous year." based on innotiative marketing strategies, To this end, by developing new products Bank Asya increased the number of its In 2011, Bank Asya continued to take part and projects to add to its existing line up of active SME customers with a dedicated in government-supported projects for its products and services, Bank Asya, has credit line to 63,000 in 2011, up 40 percent Small Business Banking clients. Within the realized its targets and sound strategies. compared to 2010. framework of its partnership with the Credit Guarantee Fund (KGF), the Bank continued In parallel with its strategic objective to to extend KGF-underwritten loans to firms grow in the Small Business Banking that have difficulty posting collateral on segment, Bank Asya unveiled its their own. “Çobanyıldızı Project”, in the last quarter of 2010. The Çobanyıldızı Project, which represents a new generation small business banking concept, proceeded to shine a light on SMEs during 2011. Rolling out eight more financing packages for SMEs, the number of loans provided to SMEs reached TRY 75 million.
041 Presentation
Bank Asya’s Activities in 2011
Retail Banking
Expected and desired growth More efficient financial support In Ongoing International Money transfer in retail banking has been services in cooperation with MoneyGram, a realized... Thanks to the various campaigns with pct 90 rise from the last year in outgoing special rates for civil servants and teachers Money transfer transctions and a pct 48 Bank Asya has continued to provide the conducted during the year, the Bank rise in incoming paymenst were realized as highest quality service to its customers via received extremely positive feedback from well. 600 retail marketing staff working in 200 customers. branches. The number of Bank Asya’s retail Bank Asya succeeded to rise customers jumped to 3.3 million in 2011, a Growth in payment and commissioning revenues at a rate pct 73. rise of 16 percent from the previous year. collection services...
2011 retail finance support was Bank Asya now plays a major role in the at center stage cash cycle of companies that receive bill payments from their customers, thanks to Improving its competitiveness in housing the easy bill payment options it provides, finance and other supportive products, through its alternative distribution channels Retail customer gowth 3.307.000 Bank Asya has focused on new product as well as in the form of automatic trend (quantity) 2.860.000 development in accordance with customer payment instructions from customer needs and expecations. While housing accounts or credit cards. 2.420.000 finances have been related to the An increase in the number of firms for construction sector, vehicle financing was 2.000.000 which bill payments are accepted increased through a focus on the vehicle contributed to the growth in bill payment dealer network. instructions, which rose by 21 percent to 1.290.000 As a result of all these activities the Bank 554,000. The Bank processed a total of provided achieved a 75 percent growth TRY 361 million in bill payments made from over the previous year in financial support all channels during the year. activities in 2011. This growth had an After a very successful year in its payment impact on the increase of the Bank’s and collections services, Bank Asya market share in the banking sector. provided salary payment services for some 2007 2008 2009 2010 2011 243,000 employees of about 3,600 firms in 2011. In addition, as part of the school and testing center tuition payment services, the 1.630 Bank processed a total of TRY 399 million Retail financial support growth (TRY Million) in payments for 92,500 students attending 696 schools.
930
477 358 398
2007 2008 2009 2010 2011
042 Bank Asya 2011 Annual Report
With an increase of 16 percent in the number of retail customers and 75 percent in retail financial support, Bank Asya covered a lot of ground in retail banking sector in 2011.
Inverstment Products… Record growth via new Card and merchant partner insurance products … activities In 2011, the Bank focused its efforts on 2011 was a year that Bank Asya Bank Asya increased the number of its marketing invetsmets accounts; thus, a introduced new incurance products in line credit cards by 6.6 percent on the previous total of 15,000 clients (up 50 percent from with customers needs and expectations. year, to above 1.9 million in 2011. Credit 2010) opened brokerage accounts to trade card turnover consistent with the stocks.The Bank recorded a rise of 31 The main products created for retail increasing number of cards also went up percent from 2010 in commission income customers were Bank Asya Evim Güvende by 18.1 percent and reached TRY 5.85 owing to the increase in efficiency and in Insurance (Home assurance), Bank Asya billion. the number of clients and invetsments Continuous Education Plan Insurance,Bank accounts. Asya Çocuğum Güvende ınsurance (child Due in part to a variety of regional and safety assurance), and Bank Asya national card marketing campaigns, newly emergency Health Insurance. attained vendors and brands as well as efficient cutomer communications With the contribution of those new throughout the year, installment purchases insurance products which were developed using AsyaCard at Bank Asya merchant with subsidiary Işık Sigorta, Bank Asya partners surged by 46 percent. As of year produced a 55 percent record growth in end 2011, approximately 200 merchants, commission income in 2011. became strategic partners.
Credit Card Growth (quantity) 1.920.000 1.800.000 1.500.000 1.300.000 680.000
2007 2008 2009 2010 2011 Bank Asya Retail Loans Distribution
Credit Card Balance
Growth (TRY Million) 5.858
4.938 4% 29% 1% 4.022 10%
3.237 Distribution Distribution on quantity on amount base base
1.707 67% 89% Consumer
Vehicle
2007 2008 2009 2010 2011 Housing
043 Presentation
Bank Asya’s Activities in 2011
Credit Card (Forwarded) 7 A solution was created for an important
86 Innovations in technology Balance Growth continue … requirement of PAKSİT cumtomers which is valid only for transactions complying with 5 Bank Asya, by continuing innovative murabaha principles, and which generated 59 investments on products and services in a huge transaction volume in a very short 2011, re-demonstrated its market time. 397 leadership with DIT Mobil and Mobile-T 292 KGS (a card-baded pass system). DIT Contactless cards, Mobil using MicroSD based NFC (Near transportation and campus Field Communication) technology and projects activities… working independent from operators enables customers to pay using their cell Continuing to innovate on current 2008 2009 2010 2011 phones. transportation and campus projects, Bank Asya maintained its leading position in this Furthermore; “Cep-T KGS”, a product field in 2011. Contacless cards offered by about which studies were completed in Bank Asya, namely AsyaCard DIT and DIT 2011 and which was developed with Due in part to newly attained brands during Pratik are being used with seven public, cooperation between Turkcell and Bank the year, the number of merchant partners transport projects in the municipalities of Asya, enables customers at Bank Asya to reached 71,245 while the total merchant Kahramanmaras, Balıkesir, Adıyaman, download the bank’s KGS applications partners balance stood at TRY 6.8 billion Karabuk, Safranbolu, Bolu and Karaman, through their cellular phones with Turkcell up 17 percent from 2010. and in TURYOL Marine Transportation in service and pass from bridges and İstanbul. Campus Card application highways without need of a physical toll continues at 9 universities (Adıyaman, card by swiping their cell phones at KGS Osmaniye Korkut Ata, Fırat, Duzce, Fatih, toll booths. Cep-T KGS will be intruduced Mevlana, Meliksah, Suleymansah and Zirve to customers in the first months of 2012. POS Balance Growth (TRY Million) Universities) under the scope of Bank Asya
6.777 Bank Asya, with its innovative products Campus Projects as of the end of 2011. utilising the latest technology, aims to AsyaCard DIT grew very rapidly thanks to sustain its market leadership at contactless 5.875 its prepaid toll card feature at highway and payment operations in the periods ahead bridge booths as well as its availability for 4.737 purchase in under 15 minutes at all Bank 3.927
7 Smart solutions to customer branches; the number of AsyaCard DIT needs via new products and
2.82 users jumped by 14 percent in 2011 to services reach 876,250 customers. Originally One of the most substantial products that launched in 2008, the prepaid DIT Pratik Bank Asya launched to its customers in card has reached 235,684 users to date. 2011 was PAKSİT. Thanks to PAKSİT Bank Asya ranks first in the sector in terms (Receive at sight, pay forward), Bank Asya 2007 2008 2009 2010 2011 of the number of contactless card (credit customers were given the opportunity to cards and prepaid cards combined) pay in up to 36 installments of their transactions and in turnover. purchases over TRY 50, using their In regard to all these effective activities, Asyacard domestically or abroad. Bank Asya ranked at 11th in credit cards, 10th in credit card balance, 9th in POS and 10th in POS balance in the Turkish market.
044 Bank Asya 2011 Annual Report
The Bank Asya Call Center, is certified in Customer Communication Centers Quality Management (ECCCO EN 15838:2009) and Customer Satisfaction Quality Management (ISO 10002:2004) in all of Europe
The best Call Center award goes Effective Management of Mobile Branch to Bank Asya… Alternative Distribution Channels Initiatives on Asya Mobile Branch were In October 2011 the Bank Asya Call Center Thanks to IVR, Inbound, Delighted undertaken with the intent of offering solid was deemed worthy of “The Best Call Customer Line and Outbound calls, SMS banking services easily to citizens in the Center Award” by the industry’s most info service and TTS (text to speech) calls, regions in which our branches do not exist prestigous institution. 9.004.474 customers were contacted in and/or at any location where banking 2011 from our call center. services were interrupted due to natural The call center was also certified in disasters. These initiatives were completed Customer Communication Centers Quality As a result of these contacts, 843.356 and the first mobile branch commenced to Management (ECCCO EN 15838:2009) products were sold to customers and render banking services to earthquake and Customer Satisfaction Quality 76.853 insurance policies generated TRY victims in Van on 5 December 2011. Management (ISO 10002:2004) in June 8.013.640 in premiums throughout the 2011. Bank Asya was the first bank to year. succeed in receiving these two certficates at the same time in whole Europe. Call Center Monthly Customer Contact Everything is for a more timely and qualified service to customers… 901.869 881.403 Bank Asya continued to make technical 799.289 793.964 improvements to its call center in 2011 in 771.080 733.683 724.041 order to respond to customer demands 710.698 679.167 680.219 666.401 with faster and higher quality service. 662.660 Telemarketing team calls were converted to Automatic Calling System, eleminating some manual work. Online receipt of payment in insurance products was accomplished and Cüzdanım (my pocket), Ailem (my family), İşsizlik (unemployment), 01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11 12.11 Evim Güvencede (home assurance) sales started to be realized via related avenues. ADC Monthly Product Sale (Quantity) The Maraton application enabled daily monitoring of the performances of 80.755 customer representatives at the Call 78.010 75.867 73.185 72.838 Center. Customer Complaints Management 72.873 67.522 67.154 66.360 process improvements were designed and 65.718 62.646 relevant works were initiated. After the 60.428 completion of this work, it is planned to improve the process of monitoring and managing complaints, measuring them with reporting and using those results as performance inputs.
01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11 12.11
045 Presentation
Bank Asya’s Activities in 2011
Unconditional customer The bank at which internet The number of customers using “AsyaCep satisfaction with Delighted branch and mobile branch were Internet Branch” increased by Customers’ Line used at optimum level… approximately four times over 2010. While the monthly-entry to internet branch During 2011, 36,398 calls were responded The Number of Internet branch users as of November 2010 was 1,11 million, this to under the Delighted Customers’ Line. reached 647,000 clients, up 19 percent was realized as 1,25 million in 2011 with The average response duration was 8 from 2010 during which the number, which pct 13 rise. On the other hand; however, seconds and 94,7 percent of calls were was 542,000 Whille there were 925 the internet branch financial transactions serviced. The timeframe to analyse Internet branch membership cancellations volume as of November 2010 was an customer demands, desires and in 2010, there were 427 in 2011 a decline average of TRY 1,39 billion, it rose up TRY complaints was on average one day at the of 46 percent Altough Internet branch 1,83 billion in 2011 - up pct 32 over the Customer Satisfaction unit. active usage ratio was pct 41 in sector- previous year. wide in the third quarter of 2011, this ratio was pct 50 at Bank Asya.
ADK Monthly Insurance Policy Sale (quantity) Internet Branch User
647.252 10.103
9.438 542.612
8.990 450.000 7.486 7.417 7.007 6.211
5.666 2009 2010 2011 4.806 3.670 3.153 2.906
01.11 02.11 03.11 04.11 05.11 06.11 07.11 08.11 09.11 10.11 11.11 12.11 15.961 AsyaCep Branch User
4.020 ADK Monthly Promotion Capacitiy (Quantity)
2010 2011 1.270.580 1.249.795 1.040.426
Internet Branch
711.659 Monthly Entry 1,25 Million 602.080 564.423
536.519 1,11 Million 468.063 449.162 429.564 350.448 340.921
2010 2011
046 Bank Asya 2011 Annual Report
Determined to increase foreign trade transactions, Bank Asya succeeded in increasing its foreign sources by 95%
International Banking
Solid basis in international Bank Asya’s increasing share in Bank Asya continued to provide its banking foreign trade... customers with medium- and long-term credit opportunities and funding sources While contributing to the national economy The Bank’s foreign trade transaction made available under a variety of Export through its support for production, Bank volume in 2011 totaled USD 21.10 billion, Credit Agency insurance programs; in Asya has also increased both its which includes, USD 4.1 billion in imports, addition, the Bank offered qualified effectiveness and its market share in USD 2.9 billion in exports, USD 13.5 billion customers US Department of Agriculture foreign trade finance as a result of its in other transfers and USD 570 million in GSM102 loans, which can be used to respected position and strong guarantees. finance imports of agricultural products correspondent relationships in international from the United States. markets. Bank Asya sustained increase of its share of Turkey’s foreign trade transactions in Bank Asya aims to continue leveraging its In conducting foreign trade transactions, 2011, achieved a 10 percent increase in extensive know-how and experience in Bank Asya delivers service that fully import volume and a six percent growth in foreign trade finance and its strong complies with international banking export volume compared to the previous international relations network in order to practices and standards and makes use of year. maintain and increase its presence in this modern banking instruments in order to business line in 2012. provide its customers with superior An enduring and trusted solutions. presence in international Bank Asya completed a transformation markets process in international transactions in Bank Asya continued to provide early 2011 and transitioned from a Import Transactions Export Transactions international services to its customers (USD Million Dollar) (USD Million Dollar) branch-based to a transaction based through an extensive correspondent portfolio structure. Since the completion of network of more than 1,400 banks in 110 4.092 %10 this process there have been significant countries. improvements in the speed, reliability, and 3.722 standard compliance of the Bank’s foreign In April 2011, Bank Asya signed an exchange transactions. agreement structured with the participation 2.906 of 26 banks from 17 countries for a %6 2.729 The foreign trade team at Bank Asya one-year murabaha syndication facility of consists of employees with-proven two tranches, of EUR 99 million and USD expertise in foreign trade, seven of whom 121.5 million (totally equaling USD 300 posess Certified Documentary Credit million), to be used in export financing. As Specialist – a certificate on Letter of Credits of 2011, funds collected to be used in and International Guarantees (CDCS) export financing from abroad reached USD 760 million, a rise of 95 percent. 2010 2011 2010 2011 International award for excellence The effectiveness of Bank Asya’s technological infrastructure and service competencies is demonstrated by the Straight Through Processing (STP) Excellence Awards that it has received from some of the world’s leading banks in 2011. Bank Asya received the STP AWARD 2011 from Citibank.
047 Presentation
Bank Asya’s Activities in 2011
Treasury
The Treasury Department, trying to In an attempt to make the maximum minimize the effects of fluctuations in the contribution to the Bank’s profitability by domestic financial market as a result of the way of its liquidity management function, economic crisis in EU and CBT policies, the Treasury Department increased the again continued to establish a balanced number of its transaction channels and foreign exchange position during this year. achieved a more competitive pricing The Department maintained Bank Asya’s structure, producing about USD 25 billion presence in the liquidity management in trading volume. segment by offering existing products and developing new products. With regards to demand from investors who started searching for returns in the low In the second half of the year the interest rate environment in which risk opportunity to access to Open Market aversion became the norm with the Operations based on GES was allowed to markets fluctuations in 2011, and due to participation banks and the Bank was able ongoing uncertainty in the global to provide short term fund sources on easy ecomomy, gold has become a widely- terms contributing considerably to the preferred investment vehicle. Rapidly Bank’s profitability. increasing its gold deposits and gold transactions in response to surging "The conractionary pressures on the customer demand, Bank Asya recorded Banking Industry margins due to tightening significant income growth from these precautions taken by CBT in order to transactions. Thanks to increasing minimize the current deficit, continued in customer interest during this period, the 2011 and caused a reduction in the funds deposited in gold accounts achieved profitability." a growth higher than the industry and The Treasury Department continued to exceeded 9.9 tons, an increase of 470 make positive contributions to the Bank’s percent. profit in 2011 by earning foreign exchange income in such a period where banking services revenues have an added importance in overall profitability.
048 Bank Asya 2011 Annual Report
In response to increasing demand for gold, Bank Asya gold accounts surged to 9.9 tons, with 470% increase over the sector
Quality Management System
The implementation of the Quality After evaluation of the Bank processes in Call Center Certificate Management System and persistent terms of quality,speed, and cost, “Business (EN 15838) improvement in its effectiveness and Product Development Coordination“ demonstrates Bank Asya’s commitment to was established to plan,organize, and Bank Asya qualified for EN 15838 development. To this end, the Bank conduct studies of improvement and Customer Communication Centers Quality engages in constant review, development development of those processes with a Management Certificate on the basis of and orientation in order to meet customers “Lean Banking” perspective. customer satisfation, incoming-outgoing needs and expectations within the bounds calls, performance management of the law and as per the prescription of ISO 9001:2008 Quality Certificate system,hiring,and the whole process of the quality management system. career planning and training. Bank Asya, recognising ISO9001:2008 EN 15838 is a an international standard Bank Asya’s customer-focused Quality Management System as a strategic consisting of special reqirements for call management approach is accepted as a decision, exerted intensive efforts to centers. The system conditions prescribed necessary condition of companies striving implement it in all functions of the Bank. with this standard is of quality to subsist in today’s competitive Accordingly, the Bank continuously spent supplementary to technical qualifications. environment. To live up to customers’ great efforts to be a bank in which its The general purpose in preparing this needs and expectations, the Bank’s employees are proud to be member. activities are monitored constantly. In standard is to identify the mutual quality accordance with feedback received from As a proof of said effort, ISO 9000:1994 and technical specifications for the aforementioned monitoring,studies are Quality Certificate was granted in 1998 and communcation centers. The standard, valid done to secure product quality from the since then took its place at the banks for interior and exterior customer design to the end of the representation quality collection counters as ISO communication centers, was designated process. 9001:2008 accomplishing the requirements both for communication centers and for of all revisions. customers utilizing these centers. Adopting the “ subsequent process is our client” principle, Bank Asya has attempted Business Continuity Customer Satisfaction to maximize the contribution of every unit Management (BS 25999) Management (ISO 10002) and every employee within the instittution to the final customer’s satisfaction. Bank Asya received the “Business Rendering quality service means replying to Maximum attention is paid to strict Continuity Certification” which was put into customer expectations in a consistent compliance with current codes, practise in 2011 from a reliable organization manner. Accordingly, Bank Asya informs, effectiveness, efficiency, and optimum cost called “British Standards Institute(BSI)”; develops and steers its employees elements in meeting the customers’ needs thereby, becoming the first Turkish constantly in order to reply in the manner and expectations. organization to receive the BS 25999 stipulated in the ISO 10002 Standard BCSM Business Continuity Management which guides the systematic identification In order to meet Bank Asya’s 2011 quality System Certicifate held only by 10 banks of customer complaints, needs, and management system requirements, an and 240 institutions throughout the World. expectations. organizational change took place with the intent of improving human resouces,system The main purpose of business continuity infrastucture, working environment, and management policy is to minimize the enhancing coordination between critical operations identified through departments. A single department called business effect analyses and make them “Human Resources and Training functional at the shortest duration Department” was formed, incorporating the customers are willing to accept. “Human Resources “ and “Organization and Quality and Training”.
049 Presentation
Bank Asya’s Activities in 2011
Information Technologies
Bank Asya srenghtened its pioneering and New functions such as bill payment, credit After consultancy of an international firm innovative identity in banking information card provisions tracking were added to within the scope of CRM Project, central technologies sector through its research Asya Mobile Branch channel which was CRM application was purchased and and development efforts and projects, and opened for customers use for allowing faceplates were started to be improved via brought its service perminence and them to conduct their banking transactions internal source resulting the start of the operational poductivity through investments through mobile phones. pilot implementation of modules such as on latest technologies and infrastructure. customer compaign management, sales management, opportunity management. With the aim of achieveing customer Safe Access to Internet Branch via Mobile Signature An integrated insurance sub-structure satisfaction and competitivie advantage established wih Işık Sigorta and began utilising technology in the most efficient Mobile Signature application capable of online to generate various produts as Evim manner and producing quick and producing entry key to Internet Branch, Güvence (House Assurance), Eğitim error- free service supply, Bank Asya Mobile Branch and Alo Asya Telephone Güvence (Education Assurance), Kart focuses its IT investments on infrastructure Banking channels was put our customers Koruma Planı (Card Saving Plan). initiatives, process improvements, disposal. alternative distribution channels Together with the bill payment of new enhancements, and innovative product Interactive Voice Response system was institutions, hajj registration system and launches in card-based payment systems. throughtly upgraded, and interface tutition fee collection systems were put into structures used by customer agents was use. It was made possible to allocate limit Major activities and investments carried out optimized to reach the quick service and simultaneously and cedit card prints to in the Information Technologies field by minimum call duration level. Thus, a new parents of students via online access to Bank Asya in 2011 include: call center interface integrated with the universities’ systems. The Bank began monitoring demand banking system was set up. management processin 2011through PMI A more effective appraisement methodology after acvieveing management Bank Asya Mobile Branch ready management of processes via PPM application which to service at anytime was formed using the same methology at Appraisement Management application In order to render customers a quicker and previous years. was purchased and adopted to the Bank on-site service after natural disasters such so as to make appraisals of real estates New functions were proceeded to be rolled as earhquakes or so and at premises in which would constitute collteral surety, out for the online branch and a which our branches not available Mobile generate reports and integrate with the comprehensive work out better to meet teh (travelling) Branch Project was put into banking systems. With the purpose of needs of Small Business Entities (SME) and practise and made ready to service at enhancing the collectibility, Electronic commercial segment self-banking was anytime via satellite connection and Litigation System was put into effect in brought to end-stage. backup links. order to track cases transferred to lawyer. Technological infrastructure works required AsyaCard Branch Renewed were concluded in order to provide sale Collection Application Minimizing Delay “Asyacad Branch” –web site- through and purchase transcations to be done both which Asyacard owners monitoring their via physical branch and through Internet Implementation of Collection, producing credit card statements and receive Branch. miscelloneous actions working as per information about recent campaigns was At the counters of branches, renewing multidimensional criterion, was put into use completely updated. customer queuing systems a new at the end of a Project conducted with kiosk-based implementation was counselling of an international company commenced recognizing the customers with the intent of collection of overdue from their debit or credit card number. receipts and cretion of early warning signals.
050 Bank Asya 2011 Annual Report
With its research-development dynamics, investments on advanced technology and infrastructure, Bank Asya reached to high levels in service sustainability and operational efficiency
Suggestion System for R&D initiatives are ongoing to strengthen It is possible to provide self-service virtual Automated Limit Increase the Bank’s alternative distribution channels infrastructure supplies for IT departments. and actively steer customers toward these A new application was rolled out channels. Bank Asya is currently The outstanding agreement between IBM suggesting amount of limit considering conducting R&D work to develop new Global Services İzmir Extraordinary various criterion such as spending habits, technologies and products for information Situation Center and Bank Asya since of the customers holding credit cards, their services on smartphones which became 2006 was extended to the end of year solvencies and asstes. System rapidly widespread, mobile banking 2017. automatically calls customers spotted by experiences and loyalty applications. Hyper-V was also added to virtualiation this way and increases the limit. Plot platform used in the Bank’s structure after scheme was commenced after completion Research and Development Vmware. Equipments with which vrtual of Management with Targets System servers work were renewed and the rate of integrated with banking application as part R&D initiatives are ongoing to strengthen virual servers in Information Center reached of development and renovation of Human the Bank’s alternative distribution channels pct 48 of physical servers. Backup of Resources implemnetations within the and actively steer customers toward virtual servers and replication to ODM Bank. these channels. Bank Asya is currently operations were lalso automized. conducting R&D work to develop new Beginning to use the automation and Account (Pusula) Management technologies and products for information integration product well-known in its field, System services on smartphones which became implementation of amendments made in rapidly widespread ,mobile banking For the sake of enhancement of the masse and simultaneously within the scope experiences and loyalty applications. business pocesses, in order to measure of IT operational business processes. Work and track the level of services Account SLA to be done independently of each other Project was launched out. In this context, Payment by installments with between systems were standardized all processes witihn the “Pusula” PAKSİT for cash spendings integrating in a simple but efficient way. As application being a management system Establishment of an installment a result of this work, labor-saving was developed within the scope of the Bank infrastructure called “PAKSIT” was targeted together with the increase of were reviewed and went on to identify the activated availing cash shoppings payable productivity and quality of IT operational time periods during which every step must by installments enabling customers processes. be completed. adjusting cash flow without being System was established enabling dependent on the merchant. As a new DIT Mobile brings contactless video-conference, training and meeting function to POS application, Pre-Provision between headquarter and branches. technology with mobile phone System was rolled out to make the interim together payment with credit card for cost of goods Application Performance management not received yet and perform final payment (BSM) l aunched in the last quarter of 2011 In order to enable customers to perform all after the delivery. monitoring of application peer to peer, contactless, and other type, transactions, evaluation of our customers feelings while with AsyaCard DIT and Card Pass System IT Infrastructure Investments they were using our applications and (KGS) using their mobile phones, the Bank realizing and responding to timely all gave start to realize its plans to further A private cloud environment covering IT performance isuues related with develop the DIT Mobil product with two infrastructure systems was formed. By applications, and planned to have distinct mobile payment applications, one doing so, lunching of infrastructure as completef within the first quarter of 2012. microSD-based and one SIM-based. service was enabled. Automation systems were utilized aiming the decrease of costs of IT infrastructure operaritonal processes and productivity.
051 Presentation
Not content with its services to the Corporate Social country in the banking sector, Responsibility Bank Asya conducts its studies on corporate social responsibility with a strong social consciousness.
Sponsorships Sport sponsorships Corporate social responsibility projects During the year, Bank Asya sponsored a Believing that talented young people need variety of activities in order to highlight its to be supported individually for the sake of Bank Asya has considered the Turkish identity not only as an expert banking the future of sports in Turkey, Bank Asya Football Federation 1st League a corporate institution, but also as a company that keeps undertaking the personal social responsibility project from the cares about society as a whole, the sponsorship of Aşkın Karaca, a young beginning of its name sponsorship of this environment, arts and sports. track athlete who has racked up numerous organization. The Bank sees its support to achievements in national and international this league as an investment in Turkish Event sponsorships competitions in the triple jump category football. Not content simply with its name since 2008. sponsorship, the Bank has fully embraced The Bank continued to sponsor major the 1st League since its relationship with events such as the INEPO International Bank Asya 1st League the organization began in 2008. Projects Environmental Project Olympiad and the undertaken by the Bank in support of the Turkish Olympiads, which have come to be Aware that investing in Turkish football is in 1st League include the Bank Asya 1st equated with the Bank Asya brand name fact investing in the country’s future, Bank League magazine, the over the years. Bank Asya also sponsored Asya extended its name sponsorship of the bankasyabirincilig.com.tr website, play-off events that focus on trade and finance- Turkish Football Federation (TFF) 1st events and the Bank Asya 1st League related issues including the Turkish League, which it has undertaken since the Awards. Bank Asya offers uniform Confederation of Businessmen and beginning of 2008. sponsorship to all 1st League teams at the Industrialists (TUSKON) and the Active Seeking to improve both the brand value beginning of each season to further Academy Financial Summit. as well as the quality of play in the 1st improve the quality of the football play in League, Bank Asya has also acted as the league. The Bank provided additional Culture and art sponsorships uniform sponsor of some league teams financial support through uniform sponsorship deals with 12 teams in the Continuing to support culture and art, Bank since it became the name sponsor. Bank Asya supported 8 out of 18 1st League 2008-2009 season, 14 teams in the Asya has been a prime sponsor of the Fatih 2009-2010 season, and 12 teams in the University “Crystal Clapperboard Short Film teams in the 2011-2012 season through uniform sponsorship agreements. 2010-2011 season, 8 teams in the Competition” for five years. This 2010-2011 out of the 18 total teams in the competition aims to raise Turkish cinema to The Bank Asya 1st League continued to 1st League. As a result of all of these new heights and encourage younger- appreciate in value as a rising and easily activities, the Bank played a major role in generation filmmakers. recognized brand; interest by the media in the increasing brand value of Bank Asya the 1st League increased and television 1st League. Media sponsorships shows dedicated to 1st League coverage began to be aired. Bank Asya continued to make donations to During 2011, Bank Asya sponsored a various educational institutions, variety of programs, columns and pages in Aiming to contribute to sportsmanship and associations and foundations during the newspapers, on radio stations and on TV sports culture by recognizing athletic year out of its commitment to corporate channels that support the Bank’s corporate achievements in addition to its support for social responsibility and without public image. Turkish football and clubs, the Bank has notices or announcements. The Bank presented Bank Asya 1st League Awards The Bank also sponsored a range of TV, donated an amount equivalent to TRY 645 for three seasons now. The third edition of thousand of its shareholders’ equity in newspaper and radio content that the Awards ceremony was held in May, and appeared during Ramadan. contributions and assistance to a variety of the winners in eleven award categories organizations and entities in 2011. were announced.
052 Bank Asya 2011 Annual Report
Subsidiaries and Affiliates
Company Name Address (City / Country) Bank’s Ownership Share (%) Yeni Mağazacılık A.Ş. (*) İstanbul / Turkey 21,84 Landmark Holding A.Ş. (*) İstanbul / Turkey 21,84 Tamweel Holding S.A. (**) Dakar / Senegal 40,00 Kredi Garanti Fonu Ankara / Turkey 1,67 Asyafin Sigorta Ara. Ltd. Şti. İstanbul / Turkey 95,00 Nil Yönetim Hiz. Tur. San ve Tic. A.Ş. Ankara / Turkey 99,93 Işık Sigorta A.Ş. İstanbul / Turkey 65,42 Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. İstanbul / Turkey 22,94 Asya Kart Teknoloji Hizmetleri A.Ş. İstanbul / Turkey 99,50 Asya Emeklilik ve Hayat A.Ş. İstanbul / Turkey 97,99
(*) The Bank recorded Yeni Mağazacılık A.Ş. and Landmark Holding A.Ş. as its affiliates in accordance with the joint investments method that is one of the Financing Methods for Participation Banks as stipulated in Article 19 of the ”Regulation on Banks’ Credit Transactions” that was published in the Official Gazette No. 26333 dated 1 November 2006 and that became effective on the same date, and the Uniform Chart of Accounts published in the Official Gazette No. 26415 (Second Issue) and dated 26 January 2007. (**)As of February 4, 2010, the Bank has paid for TRY 21.548.000 and as a consequence, became owner of 40% of Tamweel Africa Holding S.A. that is owned by the Islamic Corporation for the Development of the Private Sector (“ICD”) which is a group establishment of the Islamic Development Bank (“IDB”). TRY 9.077.000 and TRY 4.900.000 has paid for capital increase respectively on June 8, 2010 and October 3, 2011. As of the reporting date capital registry process has not been finalized yet.
Işık Sigorta Nil Yönetim Hizmetleri Emlak Tuna Gayrimenkul Yatırım Turizm San. ve Tic. A.Ş. Ortaklığı A.Ş. Işık Sigorta was established in Istanbul in 1996 with the special mission of raising Nil YÖnetim Hizmetleri Emlak Turizm Sanayi Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. is a social awareness about insurance as well ve Ticaret A.Ş. is a real estate management real estate investment trust. Formerly a as attracting those who are unfamiliar with services company that operates the Asya construction company known as Asyafin or had negative attitudes toward insurance Termal Holiday Village owned by Tuna Turizm Proje Insaat Emlak Sanayi ve Ticaret services. GYO. Bank Asya controls a 99.93% stake A.S., the Company was reincorporated as in the Company. Asya Termal Holiday Tuna Gayrimenkul Yatırım Ortakligi after Işık Sigorta has total paid-in capital of TRY Village is located in KIzIlcahamam, a obtaining a license from the Capital 60 million and Bank Asya holds a 65.42% thermal spring spa known and used for Markets Board. stake. Işık Sigorta has adopted a centuries by many different cultures and customerfocused organizational structure civilizations. Tuna GYO commenced operations on 30 that makes use of an advanced data September 2009 to invest in real estate processing network and an experienced Occupying an area of approximately properties, real estate-backed securities, workforce in order to provide better 100,000 square-meters, Asya Termal real estate development projects, real insurance consultancy services to its Holiday Village consists of a 5-star hotel estatebased warrants, and capital markets customers. with 94 rooms and a 200 bed capacity, instruments. The Company also engages in 494 deluxe timeshare houses (held under other activities allowed by the CMB’s The Company develops products in line 11,856 two-week contracts), recreation Communique on Principles Pertaining to with customer expectations and needs and facilities, indoor and outdoor swimming Real Estate Investment Trusts. delivers them with a superior service pools, health units, a shopping center, a approach that applies before, during and cultural center, and a conference center. Bank Asya directly controls a 22.94% stake after sales. in Tuna GYO. Asya Termal Holiday Village quickly This system allows the Company to established a solid reputation as a underwrite transactions, which is a prestigious venue for holidays and as a significant competitive advantage in terms health and conference tourism destination. of business conduct and service quality. Since its founding, the Village has played In November 2007, the Company moved host to many wellknown Turkish and its headquarters into a modern, fully international guests and to many large- automated “smart” building along with scale meetings and events. The resort Bank Asya, where it has served its agents plays a major role in promoting and customers ever since. Kızılcahamam as a nationally and internationally renowned spa.
053 Presentation
Subsidiaries and Affiliates
Asya Emeklilik ve Hayat A.Ş. Asya Emeklilik is determined to enchance Yeni Mağazacılık A.Ş. its market share by differentiating in Asya Emeklilik ve Hayat A.Ş.was services rendered to customers while A101 Yeni Mağazacılık A.Ş. was established on 1 July 2011 with the prioritizing its service quality. There will be a established on 28 March 2008. permissons from Banking Regulation and service concept which is accessed easily Supervision Agency dated 16 May 2011 Opening the first supermarket with the by customers, informing them accurately nameof A101 on 28 April 2008 the and Undersecretary of Treasury-General and quickly in a way that matches their Directorate of Inurance dated 8 June 2011 company has subsequently succeeded its expectaions. A profitable portfolio shall be target by 121 stores. A101 provides low and registerd to trade registry office. created with a fast and productive Folllowing establisment work, the company cost quality good and comsumables to distribution channel realizing sale of the customers at low prices in the chain applied to the operating licence for pension products in accordance with the needs of branch on 16 September 2011 and to life markets operated in “Hard Discount” target groups and operatonal infrastructure. concept. group assuranceslicence on 30 December Bank Asya has a share of 97.99 percent in 2011. the company partnership. The Company’s goal is to establish 2000 Asya Emeklilik targets those who are stores by year 2015. interest sensitive and desire a pension Tamweel Africa Holding S.A. Operations in A101 are being conducted system operating in conformity with Tamweel Africa Holding S.A. was founded from Antalya,Trakya,Sakarya,İzmir, Tuzla, participation bank basis. The portfolio is set on 9 June 2009. Sixty percent of holding Ankara,Kıraç,Samsun, Bursa, Kayseri and with this intent and was planned to shares belong to the Islamic Corporation Adana regions in addition to the comprise only of interest-free instruments for the Development of The Private Sector warehouse-office and Istanbul Central issued by the Undersecretariat of Treasury – ICD while 40 percent belong to Bank Office. in Turkey, as well as interest-free Sukuk Asya. and similar instruments issued in international markets, equity shares in Registered in Senegal, the headquarters is compliance wth participation banking located at the address of 66 Rue Carnot, 5 applications,participation accounts, and ERNE Etage Residence Diourna Lena gold funds. Asya Emeklilik determines all of Dakar. its processes in accordance with the aforementioned targets. As of 31 December 2011, 10 person were employed within the holding and there Considering Turkey’s pension market and were four branches running in Senegal, dynamics with its exprerience in the Guinea, Niger and Mouritania. participation banking, assurance and retirement needs of target groups were analysed in detail. As a result, products will be launched meeting the needs and expectaions of these target groups.
054 Bank Asya 2011 Annual Report
Independent Auditors Compliance Opinion on the Annual Report
To the General Assembly of Shareholders of Asya Katılım Bankası A.Ş.;
We have audited the accuracy and compliance of the financial information in the accompanying annual report of Asya Katılım Bankası A.Ş. with the audit report issued as of 31 December 2011. The Board of Directors of the Bank is responsible for the annual report. As independent auditors, our responsibility is to express an opinion on the audited annual report based on the compliance of financial information provided in the annual report with the audited financial statements and explanatory notes.
Our audit was performed in accordance with the accounting standards and principles and procedures of preparing and issuing annual reports as set out by the Banking Act No: 5411. Those standards require that we plan and perform our audit to obtain reasonable assurance whether the annual report is free from material misstatement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the financial information provided in the accompanying annual report presents fairly, in all material respects, the financial position of Asya Katılım Bankası A.Ş. as of 31 December 2011 in accordance with the prevailing accounting principles and standards set out as per the Article 40 of the Banking Act No: 5411. The financial information provided in the annual report is in compliance with the audited financial statements and explanatory notes, and also includes the summary Management report and our audit opinion on these financial statements.
DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş. Member of DELOITTE TOUCHE TOHMATSU LIMITED
Hüseyin Gürer Responsible Partner Chief Auditor, SMMM (Independent Accountant and Financial Advisor) İstanbul, 9 March 2012
055 Funding the real sector which is of vital importance for the healthy functioning of the economy, Bank Asya takes the side of its customers in every economical circumstances. Tree of Life Governance Informations and Implementations of Corporate Governance Principles
Board of Directors
Behçet Akyar Abdullah Çelik Ali Çelik Faruk İlk Chairman Board Member and CEO Board Member Board Member
Behçet Akyar graduated from Abdullah Çelik graduated from After beginning his career as a After graduating from Egean the Department of Financeof the MiddleEast Technical construction contractor in University Faculty of Business İstanbul Economics and University – Department of 1980, AliÇelik established Administration, Faruk İlk Administrative Sciences Economicsand completed a Çelikeller Company in 1983, began his professional career Academy andbegan his marketing and finance based Birim İnşaat Company in 1987 in 1980. He served as labour professional career as a MBA program in Old and Yapı Yatırım Company in inspector in the Ministry of managing partner of Akerler Dominion University and 2000. He currently serves as Labour and Social Security Kumaş in 1979. He worked as began his professional career the chairman of Çelikeller since 1996. He worked as the manager of the various in 1992. After serving as a A.Ş., Samanyolu Yayın executive vice president of companies ownedby himself. Certified Bank Auditor, Vice Holding, Yapı Yatırım ve Samanyolu TV between Behçet Akyar is the member President at the Board of Gayrimenkul A.Ş. and Hamle 1996-2000 and as a of the board of directors and Certified Bank Auditors, and Oto Kiralama A.Ş. and as vice managing partner and CEO of one of the shaeholdersofFeza Department Head of the chairman of Sema Sağlık Dünya Grup between 2000 Gazetecilik since 1992. He is Turkish Banking Regulation Hizmetleri A.Ş.. Mr Çelik has and 2012. Mr İlk serve as a also the chairman of Işık and Supervision Agency been assigned as a member member of oard of directors at Sigorta, a managing partner of (BRSA) respectively, he was of the Board of Directorsof Bank Asya since 2012. Akerler Tekstil and amember appointed as the CEO and the Bank Asya since 2012. ofboard of directors of Aker chairman of Development Magazacılık ina addition to Bank of Turkey at the being chairman of Bank Asya beginning of 2006. After his since 2010. assignment at Development Bank of Turkey, Abdullah Çelik joined Bank Asya as the CEO and a board member in the March 2011.
Members of Board of Directors, on 26.01.2012 Salih Sarıgül and Ahmet Çelik and on 02.02.2012 Tacettin Negiş resigned from their positions and Ali Çelik, Faruk İlk and Mustafa Talat Katırcıoğlu were appointed instead respectively.
058 Bank Asya 2011 Annual Report
Board Members and Their Terms of Office Details pertaining to the constitution of the Bank’s Board of Directors and to the terms of Office of its members are stipulated in Article 32 of the Bank’s Articles of Association. Board members serve for three-year terms. A Board Member whose term of office has expired may be reelected.
Mustafa Talat Katırcıoğlu Hülagü Özcan İsmail Erol İşbilen Behçet Akyar Board Member Board Member Board Member Chairman - 2010 Abdullah Çelik Graduating from İstanbul Graduating from the Middle Graduating from Ankara Board Member and CEO - 2011 Technical University Faculty of East Technical University University Faculty of Political Machine, Mustafa Talat Facuty of Administrative Sciences Department of Ali Çelik Board Member - 2012 Katırcıoğlu began his Sciences, Hülagü Özcan Economics and Public professional career in 1993.He began his professional career Finance, İsmail Erol İşbilen Faruk İlk serves as a partner and board in 1983. He worked as began his professional career Board Member - 2012 member in firms operating manager, auditor, executive in 1983. He served as bank Mustafa Talat Katırcıoğlu mainly in real estate and vice president and board examiner and manager at Board Member - 2012 construction sector. Mr member in miscelleneous various banks. In 1997 he Katırcıoğlu holds serves as a banks and finance joined Bank Asya as a branch Hülagü Özcan Board Member - 2010 member of board of directors corporations both in the manager and he worked as at Bank Asya since 2012. country and abroad. Mr the department head of Loans İsmail Erol İşbilen Özcan serves as amember of Unit between 2000 and 2004. Board Member - 2010 board of directors and a After serving as the member in the audit department head of a another Board of Directors committee of Bank Asya since bank, Mr İşbilen serves as a Meetings 2010. member of Board of Directors Under Article 38 of the and theAudit Committee since Bank’s Articles of Assocation, 2010. the Board of Directors must convene at least four times during a fiscal year. In addition, the Board of Directors also meets whenever the Company’s business requires a meeting or upon the invitation of its Chairman. The Bank’s board of Directors generally meets four times a month. Meetings are usually attended by all members except in situations where members have a valid excuse for their absence. In accordance with Article 44 of the Bank’s Articles of Association. The members of the Board of Directors are paid a monthly gross salary of TRY 5,000.
059 Governance Informations and Implementations of Corporate Governance Principles
Statutory Auditors
The Statutory Auditors and Their Terms of Office Details pertaining to the constitution of the Bank’s Board of Statutory is stipulated in Article 49 of the Bank’s Articles of Association. Sattutory auditors serve three-year terms anda are paid as monthly gross salary of TRY 5,000.
Atif Bilgin İrfan Hacıosmanoğlu Mehmet Gözütok Atif Bilgin Statutory Auditor Statutory Auditor Statutory Auditor Statutory Auditor - 2006
Graduating from Gazi Beginning his professional Graduating from İstanbul İrfan Hacıosmanoğlu University Faculty of career in 1986, İrfan Atatürk Institute of Education- Statutory Auditor - 2009 Education, Atif Bilgin serves Haciosmanoğlu owns various Department of Sciences, Mehmet Gözütok as the statutory auditor since companies operating in textile Mehmet Gözütok began his Statutory Auditor - 2012 1996 at Bank Asya. Mr Bilgin, industry. He holds the position career in 1978. Mr Gözütok a partner of Tuna Gayrimenkul of statutory auditor of Bank was a member at Municipality and Galaksi İnşaat Asya since 2009. Mr of Maltepe and İstanbul Companies, also serves as Haciosmanoğlu, one of the Metropolitan Municipality statutory auditor of Nil partners of Vira Denizcilik during 1994 and 1999. He Yönetim Hizmetleri. Companies, also serves as currently serves as the vice chairman at Forum İnşaat chairman of the Board of and board member at Işık Directors at Orman Ürünleri- Sigorta. Yapı İnşaat ve Dış Ticaret, and Gözütoklar Group, deputy chairman at Samanyolu Yayın Holding and as a board member at Sema Sağlık Hizmetleri A.Ş.. Mr Gözütok holds the position of statutory auditor at Bank Asya since 2012.
The Member of Board of Statutory Auditors, Ali Akbulut resigned from his position on 23.02.2012 and Mehmet Gözütok was appointed to fill the seat vacated.
060 Bank Asya 2011 Annual Report
Changes in the Membership of the Board of Directors And the Board of Statutory Auditors during 2011
Changes in the Membership of The Board of Directors During 2011 Abdullah Çelik was appointed asamember of the Board of Directors and the CEO after the resignation of Cemil Özdemir on 10.03.2011
Changes in the Membership of The Board of Statutory Auditors During 2011 No changes took place in the membership of the Board of Statutory Auditors during 2011.
Changes in the Membership of the Board of Directors and the Board of Statutory Auditors during 2011
Changes in the Membership of The Board of Directors During 2011 On 26.01.2012, Members of Board of Directors, Salih Sarıgül and Ahmet Çelik resigned from their position On 02.02.2012, Tacettin Negiş resigned from his position. Ali Çelik, Faruk İlk and Mustafa Talat Katırcıoğlu were appointed for the vacant positions
Changes in the Membership of The Board of Statutory Auditors During 2011 The Member of Board of Statutory Auditors, Ali Akbulut resigned from his position on 23.02.2012 and Mehmet Gözütok was appointed to fill the vacant seat.
061 Governance Informations and Implementations of Corporate Governance Principles
Senior Management
Abdullah Çelik Dr. Ercüment Güler Ahmet Beyaz Dr. Feyzullah Eğriboyun Board Member and CEO Executive Vice President Executive Vice President Executive Vice President
Abdullah Çelik graduated from Graduating from Ankara Graduating from Ankara Graduating from Bosphorus the MiddleEast Technical University (Faculty of Political University (Faculty of Political University (Department of University – Department of Sciences - Department of Sciences - Department of Electric - Electronic Economicsand completed a Public Finance) and doing his Public Finance), receiving his Engineering and Mathematics) marketing and finance based master’s degree at İstanbul master’s degree from both and receiving his master MBA program in Old University (Money and Yeditepe University (Financial degree in Applied Dominion University and Banking) and studying for Law) and from University of Mathematics and doctorate began his professional career doctorate at Marmara Illinois (MBA), Ahmet Beyaz programme at Mathematical in 1992. After serving as a University (Banking and began his professional career Finance from Carnegie Mellon Certified Bank Auditor, Vice Insurance programme), in 2001. After serving as University, Feyzullah Eğriboyun President at the Board of Ercüment Güler began his Certified Bank Auditor, and began his professional career Certified Bank Auditors, and professional career in 1995. Certified Bank Chief Auditor, in 1997. He served as Department Head of the After serving as bank Mr Beyaz joined to Bank Asya financial engineer, strategist Turkish Banking Regulation examiner, branch manager in 2011 as the Executive Vice and trader at various and Supervision Agency and department head, Mr President responsible for international investment banks (BRSA) respectively, he was Güler joined Bank Asya in Budget and Reporting and in New York City and London appointed as the CEO and the 2011 as the Executive Vice Accounting and Subsidiaries. between 1997 and 2011. He chairman of Development President responsible for taught finance at Sabancı Bank of Turkey at the Retail Banking. University in 2009. Mr beginning of 2006. After his Eğriboyun joined Bank Asya in assignment at Development 2011, and currently serves as Bank of Turkey, Abdullah Çelik the Executive Vice President joined Bank Asya as the CEO responsible for Treasury, and a board member in the Investor Relations, Financial March 2011. Institutions, Human Resources and Training Departments.
062 Bank Asya 2011 Annual Report
Fahrettin Soylu Ahmet Akar Zafer Ertan Ali Tuğlu Executive Vice President Executive Vice President Executive Vice President Executive Vice President
Graduating from Ankara Graduating from Ankara Graduating from Dokuz Eylül Graduating from İstanbul University (Faculty of Political University (Faculty of Political University (Public Technical University (Faculty of Sciences, Business Sciences, Public Administration) and Computer Engineering) and Administration) and Administration), Ahmet Akar completing MBA program in Virgnia Technical University completing MBA program began his professional career Fatih University, Zafer Ertan (Computer Sciences - inUniversity of Illinois,Fahrettin in 1995. After serving as bank began his professional career Master’s Degree), Ali Tuğlu Soylu began his professional examiner, manager and in 1997 at Bank Asya. He held began his career as a lecturer career in 1994. After serving branch manager in the various positions in Loans at Virginia Tech University as Certified Bank Auditor, banking industry, he joined Allocation and Loans in1993. After working as a Certified Bank Chief Auditor, Bank Asya as Executive Vice Monitoring Departments. He consultant and manager at deputy head of Board of President responsible for was appointed to the various international Certified Bank Auditors, Loans Allocation in 2001. Non-Performing Loans corporations within the headof Supervision Group and Department as the manager in country and abroad, Mr Tuğlu head of department at the 2008 and he currently serves joined Bank Asya as the Banking Regulation and as the Executive Vice Executive Vice President of Supervision Agency of Turkey President of Risk Monitoring, Information Technologies in (BRSA), member of the Non-Performing Loans,Law 2008. Standard Practice Group of and Real Estate Departments. Basel Banking Auditing Committee, Mr Soylu joined Bank Asya as Executive Vice President in 2010. He currently holds the position of Executive Vice President.
063 Governance Informations and Implementations of Corporate Governance Principles
Senior Management
Board of Directors
Auditing Coordination
Ceo Consultancy to Abdullah Çelik CEO
Executive Vice Executive Vice Executive Vice Executive Vice Executive Vice President President President President President Ercüment Güler Fahrettin Soylu Ali Tuğlu Ahmet Beyaz
Risk Management Retail Products and Corporate Marketing Banking Services System Development Budget and Center Head Sales Management Department Department Department Reporting Mehmet Kamil Department Atilla M. Topçu J. Başak Ünal Mustafa Saraç Department Tümer Gökhan Çeviker Kamil Yılmaz
Board of Commercial Card-based Payment Allocation International Accounting and Inspectors Head Marketing Systems Marketing Department Transactions Subsidiaries Hilali Yıldırım Department Department Olcay Çakır Department Department Ahmet Deniz Emre Özgür Bülent Güngör Fuat Akgün
Alternative Internal Control SME Marketing Distribution Credit Operations System Operations Purchasing Head Department Channels Departmen Department Department Mahmut Yalçın Murat Demir Department Adil Z. Şahin Bekir Başkurt Murat Aydoğan Ali Sait Özkan
Information Resource Cash Management Technologies and Corporate Regional Project Management Development Department Communication Marketing Offices Dept. Telat Altun İsrafil Aydın Department Mehmet Ergün Ömer F. Gülap Aydemir
Administrative Payment Sytems Card Technologies Affairs Operations Department Ömer Fuat Department Sami Özen Özçelebi Mustafa Ölmez
Retail Loans Allocation Department Hasan A. Küçük
064 Bank Asya 2011 Annual Report
Job and Product Executive Vice Executive Vice Executive Vice Board of Development President President President Directors Secretaria Coordination Zafer Ertan Ahmet Akar Feyzullah Eğriboyun Serhat Keleş Abdurrahman Köse
Non-Performing Commercial Loans Treasury Loans Department Allocation Department Şeref Bacak Department Cenk Yavuz Zihni Zeytun
Risk Monitoring SME Loans Financial Legislation and Department Allocation Institutions Compliance Kamil Cengiz Department Department Department Eken Berber İbrahim Öğüdücü Nazan Ergün
Construction Fiscal Analysis and Facilities and Information Invertor Relations Department Department Department Hüseyin Sevil Cevdet Korkmaz
Group Management Corporate Loans Human Resources Department Allocation and Training Mehmet Uruç Department Department Özcan Özverim Erdoğan Kılıç
Project Finance Legal Consultancy Department Murat Kızgın Ersagun Şimşek
Foreign Business Regional Legal Consultancy Allocation Talha Salih Yayla Offices
065 Governance Informations and Implementations of Corporate Governance Principles
Committees
Audit Committee
Position Name Title Member Hülagü Özcan Member of the Board of Directors-Audit Coordinator Member İsmail Erol İşbilen Member of the Board of Directors-Audit Coordinator
The Audit Committee periodically prepares an “Audit Committee Activity Report” of its findings on the Bank’s auditing and risk management activities to ensure that there is effective internal control, internal audit and risk management system throughout the Bank; the Activity Report is prepared for the the Board of Directors. The Audit Committee convened 30 times during 2011. The Committee held four meetings with the independent auditors in order to evaluate internal audit activities.
Credit Committee
Position Name Title Member Abdullah Çelik Member of the Board of Directors – CEO Member Salih Sarıgül (1) Vice Chairman of the Board of Directors Associated Member Ahmet Çelik (1) Member of the Board of Directors
(1) Salih Sarıgül and Ahmet Çelik resigned from the membership of theBoard of Directors on 26th of January 2012 and Behçet Akyar and Faruk İlk were appointed in their place
The Credit Committee convenes regularly every week to evaluate commercial, corporate, and small business loan proposals. The Committee may also meet upon the invitation of the Chairman when necessary. The Credit Committee has the power to extend or deny credit within the limits of its own authority subject to the requirements of banking laws and regulations. Proposals that exceed those limits are submitted to the Board of Directors for approval.
Assets and Liabilities Committee
Position Name Title Head Abdullah Çelik CEO Vice Head Ahmet Beyaz Executive Vice President Member Ahmet Akar Executive Vice President Member Ali Tuğlu Executive Vice President Member Dr. Ercüment Güler Executive Vice President Member Fahrettin Soylu Executive Vice President Member Dr. Feyzullah Eğriboyun Executive Vice President Member Zafer Ertan Executive Vice President Member Mehmet Kamil Tümer Head of Risk Management
The Assets and Liabilities Committee convenes every week. Meetings are chaired by the CEO and attended by Executive Vice Presidents and the managers of departments whose activities might have an impact on the Bank’s balance sheet. The meeting agenda consists of determining the strategies for the coming week by assessing the Bank’s balance sheet, business line activities, general economic data, and current political and economic developments Corporate Governance Committee
Position Name Title Member Behçet Akyar Chairman of the Board of Directors Member Salih Sarıgül (1) Vice Chaiman of the Bard of Directors Member Fahrettin Soylu Executive Vice President Member Ahmet Beyaz Executive Vice President Member Mehmet Kamil Tümer Head of Risk Management
(1) Salih Sarıgül resigned from his membership from the Board of Directors on 26th of January 2012 and Faruk İlk was appointed to the vacated seat.
The Corporate Governance Committee convenes at least three times a year in order to oversee the Bank’s compliance with the corporate governance principles, to undertake initiatives to make improvements in this area, and to make recommendations to the Board of Directors.
066 Bank Asya 2011 Annual Report
Discipline Committee
Position Name Title Head Abdullah Çelik CEO Member Dr. Feyzullah Eğriboyun Executive Vice President Member Mehmet Uruç Chief Legal Counselor Member Hilali Yıldırım Head of Supervisory Board Member Erdoğan Kılıç HR and Training Manager Associated Member (1) Zafer Ertan Executive Vice President Associated Member (2) Murat Kızgın Legal Counselor
(1) In case the EVP of HR’s absence, (2) In case of the absence of Chief Legal Counselor.
The Discipline Committee’s function is to determine the presence, perpetrators, degrees of culpability, and potential damage of transactions and acts that necessitate disciplinary action pursuant to the Bank’s internal regulations and disciplinary bylaws. The Disciplinary Committee convenes as circumstances warrant in meetings chaired by the CEO and attended by those managers involved in the issueson the agenda.
Information Technologies (IT) Strategy and Steering Committee
Position Name Title Head Abdullah Çelik CEO Member Ali Tuğlu Executive Vice President Member Mustafa Saraç System Development Manager Member Bülent Güngör Software Development Manager Member Bekir Başkurt System Operations Manager Member Mehmet Ergün Aydemir IT Project Manager Member Sami Özen Card Technologies Manager
IT plans its activities and investments prepares its annual budget and presents it to the Board of Directors for their approval. It monitors, controls and steers the general projects requiring IT invesments. The committee audits the aims and annual activity plans of all IT units. IT committee also advises on IT functions, processes, systems and the development of systems, risks, sourcing, organizing, relations with service units and meets the needs of service units and the like to the related IT departments.
Information Security Management Committe
Position Name Title Member Dr. Ercüment Güler Executive VicePresident Member Ali Tuğlu Executive VicePresident Member Ahmet Beyaz Executive VicePresident Member Dr. Ender Şahinaslan Risk Management, Compliance and Information Security Manager
The Information Security Management Committee, working under the Chief Executive Officer, convenes regularly to oversee Information Security initiatives, monitor developments, and make managerial decisions.
Information Technologies (IT) Risk Management Committee
Position Name Title Head Ali Tuğlu Executive Vice President Member Mehmet Kamil Tümer Head of Risk Management Member Mehmet Ergün Aydemir Director of IT Project Management Member Bekir Başkurt System Operations Manager Member Mustafa Saraç System Development Manager Member Sami Özen Card Technologies Manager Member Bülent Güngör System Software Manager Member Dr. Ender Şahinaslan Risk Management, Compliance and Information Security Manager
IT Risk Management Comitte reviews risks related to Information Technologies evaluated as the part of operational risk and makes managerial decisions regarding risks requring manegement approval-opinion.
067 Governance Informations and Implementations of Corporate Governance Principles
Committees
Project Finance Credit Committee
Position Name Title Head Abdullah Çelik CEO Vice Head Ahmet Akar Executive Vice President Member Ersagun Şimşek Project Finance Manager Member Ahmet Deniz Commercial Marketing Manager Member Atilla M. Topçu Corporate Marketing Manager Member Zihni Zeytun Commercial Loans Allocation Manager Member Özcan Özverim Corporate Loans Allocation Manager
(*) Concerned Marketing Managers also participate in the committee as a member according to project title.
Project Finance Credit Committee serves depending on the Board of Directors makes the evaluation of Project loans. The authority and function of the General Manager Credit Committee(GMCC) operates in lieu of GMCC during the credit allocation process.
Pricing Committee
Position Name Title Member Behçet Akyar Chairman of the Board of Directors Member Tacettin Negiş (1) Member of the Board of Directors
(1) Mustafa Talat Katırcıoğlu was appointed to the vacated seat after the resignation of board member Tacettin Negiş on 2nd February 2012.
Acting depending on the Board of Directors, the Pricing Committee was established according to “The Regulations Concerning the Principles of Banks Corparate Governance “ issued by The Banking Regulation and Supervision Agency of Turkey (BRSA) and fulfills the monitoring and supervision tasks of the Bank’s pricing implementations on behalf of the Board of Directors.
Cost Management Committee
Position Name Title Head Ahmet Beyaz Executive Vice President Member Abdurrahman Köse Business and Product Development Coordinator Member Kamil Yılmaz Budget and Reporting Manager Member Fuat Akgün Accounting and Subsidiaries Manager Member Murat Aydoğan Purchasing Manager Member Ümit Eski Cost Management Department Senior Manager
Coordinating the effective management activities of the Bank’s expenditures the Cost Management Committee, fulfills the tasks of taking decisons related to activities, approving purchase of goods and services prior to purchase within the limits of authority, inviting the managers to the committee to achieve the cost-benefit analysis prior to purchase when necessary.
068 Bank Asya 2011 Annual Report
Summary Report of Board Director
Esteemed Shareholders,
Bank Asya maintained its pioneering position in the Turkish banking industry in 2011 with its strong customer relationships, broad deposit base, sound balance sheet, customer- focused and innovative management approach, conservative risk management strategy and transparent corporate governance practices. The low inflation environment, intense competition in the Turkish banking industry, and the rapidly expanding credit as a result of increased liquidity in the system led to lower levels of lending and contracting profit margins. The decline in lending rates also led to an improvement in the key indicators of the banking sector by boosting consumption and growth while fueling credit expansion and reducing both the stock of non-performing loans and the NPL ratio on new loans. The Bank's strategic goals to constitute a lower risk perception and a safer credit portfolio gave its results in 2011. The year of 2011 has been a favorable and successful year for Bank Asya in terms of growth and profitability. A brief review of the its key financial indicators for 2011 show the extent of Bank Asya’s strong performance during the year. The Bank has attained a profit of TRY 216 million for the year. Bank Asya’s total assets at year-end 2011 reached TRY 17.2 billion, up 18% from he previous year. The deposit base expanded and the funds raised were extended to corporate, commercial, small business and retail banking clients as loans. Cash loans, which played a major role in the robust growth of the Bank’s balance sheet, totaled TRY 13,45 billion, up 22% compared to the previous year. Deposits, which make up the largest share of the Bank’s liabilities, grew by 11% to TRY 12.4 billion. Bank Asya also reported a return on assets (ROA) of 1.3% and return on equity (ROE) of 10.1% for 2011.
In light of the developments highlighted above, in the year end 31 December 2011, Bank Asya’s:
• Total Assets increased by 18%, to TRY 17.190 million • Cash Loans increased by 22%, to TRY 13.452 million • Deposits increased by 11%, to TRY 12.397 million • Shareholders’ Equity increased by 10%, to TRY 2.137 million • Net Profit stood at TRY 216 million • Capital Adequacy Ratio stood at 13.31%.
We hereby submit Bank Asya’s annual report and financial statements showing the results of the Bank’s activities for the period 1 January 2011 to 31 December 2011 for your information and consideration.
Respectfully yours,
Asya Katılım Bankası A.Ş. Board of Directors
069 Governance Informations and Implementations of Corporate Governance Principles
Human Resources
The core values of Bank Asya’s corporate The main objective of the Bank’s hiring When the Bank is opening a new branch, culture include professionalism, innovation, processes is to recruit highly responsible priority is given to those successful honesty, confidentiality, compassion, team players who have strong employees who could not otherwise be respect, fairness, effectiveness, interpersonal communication skills and a promoted due to the lack of open positions productivity, quality, teamwork and social strong understanding of participation in the title or career band. responsibility. banking; in addition, Bank Asya candidates should identify with the Bank’s mission and All career paths leading to even the highest Bank Asya aims to be one of the world’s vision, be open to learning and professional positions at Bank Asya are open to all leading participation banks and to ranking development, and follow new industry employees. The Bank’s primary criteria in among the forefront of companies where trends closely. The most sought promotion decisions are employee highly qualified professionals desire towork. afterqualities in the Bank’s applicants are performance and contribution to the Bank’s overall performance. For Bank Asya To this end, the Bank continually develops university graduates, who speak at least one foreign language, and, for male employees to receive a promotion the and implements new initiatives in order to following must occur: there must be a recruit the most highly qualified personnel candidates, have completed military service. vacant position to which they may and ensure their commitment and loyalty to advance; they must be successful in their Bank Asya. Through its evaluation center The Bank recruits inexperienced current position;they must have fulfilled the testing, the Bank identifies the areas candidates for certain positions including minimum term of service in their current needed for further professional assistant marketing representative, position;they must have performed at a development and administers training assistant internal auditor, assistant internal satisfactory level during their testing period; programs accordingly; helps candidates controller, assistant financial analysis and they must have successfullycompleted acquire necessary skills via the information representative, teller training required forpromotion; and they management trainee academyprogram; representative, and call center customer must never have been the target of and provides overseas language education representative. Inexperienced applicants disciplinary action. As of year-end 2011, opportunities forall employees. are evaluated based on the requirements of Bank Asya had a total of 4,542 employees the position they are applying for. After a (1,608 females and 2,934 males). Bank Asya keeps constant recruitment process which identifies touch with the students via its candidates who fit with the Bank’s “Development Base”… business and corporate culture, prospects Breakdown of Employees by are assessed on the merits of their Educational Background To better acquaint university students with education, training and skills; Bank Asya Bank Asya, the Bank is undertaking the Educational B. Number Ratio (%) aims to create a professional environment Development Base Project. The Project that provides equal career opportunities Graduate 2.951 65,0 organizes a training camp for students and and a high level of job satisfaction to its provides them with internship opportunities Associate 682 15,0 employees. at the Bankduring the year. The High School 603 13,3 Development BaseProject ensures that When there is an open position in the Post Graduate 284 6,3 students who are prospective employees Bank, an announcement is made to will learn more about, and remain in personnel using internal communications Primary 16 0,3 contact with, Bank Asya as they advance before the job opening is posted externally. PHD 6 0,1 toward graduation and enter the business The Bank’s current employees are given life. priority in filling open positions. However, Total 4.542 100,0 Bank Asya also considers other candidates The primary goal of Bank Asya’s Human who are believed to be able to contribute Resources Department is to cultivate a to the Bank based on their experience, Number of Employees by Educational sense of team spirit within the Bank and skills and abilities. Background increase overall productivity by leveraging the staff’s sense of engagement and 2010 4.266 belonging. 2011 4.542 Change (%) %6,5
070 Bank Asya 2011 Annual Report
Bank Asya targets to be one of world’s foremost pioneering participation banks by continuously increasing its service quality Training through its qualified human resources and personal improvement programs
Bank Asya, taking into consideration its Besides in-class trainings depending on goals and strategies as well as supporting the learning objectives, on-the-job all employees’ personal and professional trainings, orientation programs, e-learning career developments, carries out activities trainings are also used widely. 35 pieces of to contribute to the increase of service e-learning on different topics were quality and productivity. completed by 4,900 employees during 2011. 7 hours e-learning per employee. The main objectives of the training program During 2011, 85 trainings on various topics are to educate employees capable of both were given including conferences and technical information and self motivation seminars held outside the Bank. Many which enable Bank Asya to grow not only studies were carried out to measure the within the country but also abroad. The outcomes of those trainings. Bank Asya, goal is to speed up the compliance and with the aim of increasing the number of improvement process of employees employees knowing foreign languages, supporting HR functions such as provided 90 of its employees with English promoting, managing with targets, and course support and also started English career planning. language training within the bank in In accordance with the stipulated targets accordance with its misson to be not only and findings of education need analysis, one of Turkey’s best but also one of world’s the number of trainings which are to given leading participation banks to employees working both at branches and the head office are updated reviewing at the beginning of every fiscal year. Trainings are held in-cooperation with the professional companies specialized in the field of education and experienced in-house trainers.
Number of Employees in Terms of Training
Total Number of Training Topics 85 Total Number of Training Groups 629 Total Number of Attendance (Person x Days trained) 28.547 In-Class Training day per employee 6,34 E-learning hours per employee 7,5 Number of employees suppoted for MBA 30
071 Governance Informations and Implementations of Corporate Governance Principles
Transaction Volumes of the Risk Group Bank Asya included, Outstanding Loans and Funds Collected at the End of Period, Costs and Revenues Regarding the Period
Current Period: Participations, Subsidiaries And Joint Direct and Indirect Other Entities Included In Risk Group Of The Bank Ventures Shareholders of the Bank Risk Group Cash Non-cash Cash Non-cash Cash Non-cash Loans And Other Receivables (*) Beginning Balance 77.494 8.921 - - 172.548 42.782 Endıng Balance 107.795 16.806 - - 206.072 164.645 Profıt Share And Commıssıon 15.438 - - - 35.797 - Income
(*) Includes TRY 3.411 thousands Finance Lease Receivables as of 31 December 2011(31 December 2010: TRY 153 thousands)
Previous Period
Participations, Subsidiaries And Joint Direct and Indirect Other Entities Included In Risk Group Of The Bank Ventures Shareholders of the Bank Risk Group Cash Non-cash Cash Non-cash Cash Non-cash Loans And Other Receivables (*) Beginning Balance 52.357 9.225 - - 220.914 68.491 Endıng Balance 77.494 8.921 - - 172.548 42.782 Profıt Share And Commıssıon 15.164 - - - 23.870 - Income
(*) Includes TRY 153 thousands Finance Lease Receivables as of 31 December 2010(31 December 2009 : TRY 237 thousands)
Risk Group Deposits Balance of the Bank
Participations,Subsidiaries Direct And Indirect Other Entities Included In Risk Group of the Bank and Joint Ventures Shareholders Of The Ban Risk Group Current and particpation accounts Current Period Current Period Current Period Begınnıng Of Perıod 104.089 - 109.357 End Of Perıod 113.796 - 127.638 Profıt Share Expense 7.585 - 4.950
072 Bank Asya 2011 Annual Report
Report on Compliance with Corporate Governance Principles
Statement of Compliance Contact information for Investor Relations Contact information of Shareholder Department personnel is presented below. Relations Unit personnel is presented with Governance below. Principles Cengiz Önder Investor Relations / Supervisor Fuat Akgun Asya Katılım Bankası’s corporate Tel : +90 216 633 59 60 Shareholder Relations / Manager governance structures, processes and E-mail: [email protected] Tel : +90 216 633 54 50 principles are formulated so as to be in E-mail: [email protected] compliance with the requirements of the Nevzat Mutlu Banking Law as well as with all other Investor Relations / Assistant Chief Ozlem Coskun applicable laws, regulations, and Tel: +90 216 633 59 63 Shareholder Relations / Supervisor administrative provisions. Bank Asya [email protected] Tel : +90 216 633 54 57 publicly discloses all rules and practices E-mail: ozlem.coskun@bankasya. com.tr that determine the Bank’s relationships with Shareholder Relations Unit Alpay Guneralp its Board of Directors, shareholders and The principal duties of the Shareholder Shareholder Relations / Chief other stakeholders in line with its sense of Relations Unit include: Tel: +90 216 633 54 58 social responsibility, subject always to the E-mail: [email protected] requirements of the Banking Law. • Ensuring that shareholder records are maintained in a sound, secure, and upto-date manner. Exercise of Shareholders’ Right Shareholders and Investor to Obtain Information Relatıons Unit • Responding to shareholders’ written requests for information about the Bank Bank Asya’s website located at www. The Bank conducts its investor relations with the exceptions of the Bank’s bankasya.com.tr contains an Investor activities within the framework of its public confidential information, trade secrets Relations section both in Turkish and in disclosure and corporate governance and information that is not publicly English where information about the Bank principles through the Investor Relations disclosed. that may be of interest to shareholders and Department and the Shareholder Relations • Ensuring that General Assembly to the public at large is published Unit of the Accounting and Subsidiaries meetings are conducted in compliance immediately. This website provides Department; both departments report with current laws and regulations, the information about the Company in general, directly to the Board of Directors. Bank’s Articles of Association and other Bank Asya shares, regularly issued financial bylaws. statements and annual/interim reports, Investor Relations Department • Preparing documents for the use of presentations, and corporate governance shareholders at General Assembly structure. Information stipulated by the The Investor Relations Department’s meetings. provisions of the Banking Law, Turkish primary objective is to contribute to the • Recording the results of voting at Commercial Code, the Capital Markets Bank’s value in all respects by serving as a General Assembly meetings and Law and their related regulations is publicly bridge between the Board of Directors and reporting the results to the disclosed in the form of “special investors in accordance with the Bank’s shareholders. circumstance announcements” All public disclosure policy so as to ensure • Overseeing and monitoring all issues questions posed by shareholders that do that the Bank’s growth model and future related to public disclosures as required not fall within the category of the Bank’s goals are explicitly and clearly understood by law and the Bank’s public disclosure trade secrets are responded to by the and to increase the Bank’s visibility and policy. relevant units in keeping with the principles transparency in the financial services • Maintaining a section on the Bank’s of fairness and equality. industry and banking sector. To this end, website to inform shareholders about Bank Asya’s Investor Relations Department issues that may be of close concern to In 2011, the Investor Relations Department holds meetings with the Bank’s existing them including, developments that may took part in an average of 6 one-on-one or and prospective investors by taking part in have a significant impact on the Bank’s group meetings per month to increase the investor conferences organized in Turkey financial well-being, the shareholder visibility of the Bank with existing or and abroad and by conducting road structure, members of the Board of prospective investors and bank analysts shows; holds meetings and communicates Directors, annual reports, capital who visited the Bank; the Department also with representatives from brokerage structure, quarterly profit/loss participated in 17 foreign investor houses and bank analysts; prepares statements, information about branches conferences in Turkey and abroad, and investor presentations concerning the and key personnel, and General conducted separate meetings with 273 Bank’s activities at the end of each quarter Assembly meeting resolutions. investors during the year. and makes these available to investors on The Shareholder Relations Unit sends the Bank’s website; holds teleconferences; reports about its activities to authorities and responds to all verbal and written through designated channels during the requests for information about the year. Company with the exceptions of the Bank’s confidential information, trade secrets and information that is not publicly disclosed.
073 Governance Informations and Implementations of Corporate Governance Principles
Report on Compliance with Corporate Governance Principles
Information about General Transfer of shares Information about Bank Asya is provided Assembly Meetings by the Investor Relations Department The issue of share transfers is governed by through its participation in investor Announcements concerning General Article 11 of the Bank’s Articles of meetings. In addition, the Department Assembly meetings are published within Association, and is as follows: responds to questions about these issues the legally prescribed time periods in the Transfers of Group A shares, all of which from investors and shareholders via Trade Registry Gazette and in the press. are registered in the name of their owners, telephone and email. Such announcements include a copy of the are subject to the approval of the Board of meeting agenda and a proxy form. Directors. The Board may, entirely at its Public Disclosures Invitations are also sent out to shareholders own discretion and without advancing any by mail. During the reporting period, Bank During 2011, Bank Asya issued a total of reason for doing so, refuse to allow such Asya held its Ordinary General Assembly 45 (forty-five) special circumstance transfers; similarly, it may approve and Meeting on 26 March 2011. Shareholders announcements within the framework of allow such transfers under such terms and exercised their right to ask questions at this Capital Markets Board regulations. conditions as it may deem appropriate. meeting and all questions that were raised Transfer of these shares are legally binding were answered. No shareholder advanced upon the Company only if they have been Company Website and Its any motion on any issue that had not been duly recorded in the Shareholders’ Content included in the agenda. The Bank’s Articles Register. Transfers of B group shares, all of of Association permits votes to be cast by The address for the corporate website of which are registered in the name of their proxy at General Assembly meetings. Asya Katılım Bankası A.S. is owners, may take place without any need www.bankasya.com.tr. The Bank’s website for Board of Directors approval subject to contains detailed information about the Voting Rights and Minority Turkish Commercial Code, Capital Markets Rights Bank and the products and services Law and the Central Registry Agency offered by the Bank. Banking transactions Shareholders are entitled to one vote for regulations. may be performed through Bank Asya’s each TRY 1 (one Turkish lira) share of stock Share transfers for which the Banking Law online branch. The Investor Relations that they own. Shareholders may cast their requires Banking Regulation and section, presented in both Turkish and votes in person or by proxy. Supervision Agency approval may be made English on the Bank’s website, contains information about the Bank’s management Voting at General Assembly meetings is only if that Agency’s permission has been structure; the latest version of the Articles conducted by an open show of hands. obtained. Transfers that do not have this of Association; General Assembly meeting However, voting by secret ballot is required approval may not be recorded in invitations, agendas, and minutes; annual conducted upon the demand of the Shareholders’ Register. Shareholders reports; periodical financial statements, shareholders representing at least who acquire shares for which Banking reports and presentations; and public onetwentieth of the capital that is present Regulation and Supervision Agency disclosures. The Bank pays particular at the meeting. Issues pertaining to proxy approval is required but for which attention to ensure that the information on voting are determined within the framework permission is not obtained may not its website is kept up-to-date. of related laws and regulations. This matter exercise any shareholder rights other than is set forth in Article 24 of the Bank’s receiving dividend payments. Articles of Association. Disclosure of Real Person(s) Public Disclosures and as Ultimate Controlling Profit Distribution Policy and Transparency Company Shareholder(s) Timing As of 31 December 2011, the Bank has a multi-partner shareholding structure, with Principles pertaining to profit distribution of Disclosure Policy 305 shareholders. No shareholder controls Asya Katılım Bankası A.S. are stipulated in A company disclosure policy was more than a 10 percent stake in the Bank. detail in the Bank’s Articles of Association, developed by the Board of Directors in line Information about this matter is publicly which is available on the Bank’s website. with corporate governance principles with disclosed on the Bank’s website. Matters concerning the implementation of the aim of ensuring that all stakeholders, the dividend payment policy are conducted including shareholders and the public at Public Disclosure of Individuals in accordance with the Articles of large, are kept informed in a timely, Association. Dividends are paid out within Who Have Access to Insider accurate, complete, comprehensible, and Information the statutorily prescribed time periods. simultaneous manner. This policy was The Board of Directors’ dividend payment approved at the Bank’s Ordinary General A list of individuals who have access to proposal is one of items placed on agenda Assembly Meeting held on 31 March 2006. insider information about the Bank has been published on the Bank’s website of the General Assembly meeting. It is In order to ensure that accurate and timely since 30 April 2009. The names of presented for the consideration of information is provided in this regard, a members of the Board of Directors and of shareholders and voted on by the General presentation for each quarterly financial senior management who may be in such a Assembly. statement is prepared and shared with position are published in annual reports investors on the Bank’s website. This matter is set forth in Article 54 of the and on the website. Bank’s Articles of Association.
074 Bank Asya 2011 Annual Report
Stakeholders • Create a workplace environment that • Do not discriminate on the basis of will foster the willingness of all nationality, religion, financial or social employees to work with their managers status, or sex when serving customers. Keeping stakeholders Informed while also striving to improve • The existence of an organizational relationship skills, Stakeholders are regularly kept informed structure and product range that about matters that are deemed necessary • Provide an open and two-way identifies and differentiates among and important. The Bank has made communications environment, target groups, and approaching necessary organizational arrangements to • Involve employees in career planning customers in different risk groups differently, is not to be interpreted as meet the information requests of and provide everyone with equal career justification for discriminating among shareholders, employees and customers. opportunities. customers or categorizing them. Through these arrangements, The Bank has adopted a performance shareholders, customers, employees and management system. Under this system, Bank Asya investigates the reasons for any regulatory agencies are kept effectively employees are evaluated at regular customer complaints that it receives via the informed. intervals in terms of their performance and systems that it had created, which include, the results of the evalution are shared with Customer Request Web Module, Alo Asya Stakeholder Participation in the employees. Call Center, and Happy Customer Hotline. Management The Bank takes necessary measures to Every year, an Internal Customer avoid the recurrence of any issues that led Bank Asya has always encouraged Satisfaction Survey is conducted at the to justifiable complaints. employees to participate in management. Bank to assess employee and job Such action includes correcting the In this regard, employees are able to freely satisfaction levels. Employee job, social, practices that provoked the complaint and express all of their opinions and and psychological satisfaction are also informing employees in order to prevent suggestions about the Bank’s activities supported through an in-house club for any recurrences. through the Asya Suggestion System the personnel called “Yediveren”.In this regard use of which requires no prior approval. during 2011, the club conducted a variety These opinions and suggestions are of meetings, events, and activities. Social Responsibility processed by personnel who are charged Work has been completed on a job Within the framework of its sense of social with this duty; they are then forwarded to description and an associated salary scale responsibility and of the requirements of relevant members of management for system in our growing Bank. The new the laws and regulations which it is subject action to be taken as appropriate. All compensation system has been in effect to, Bank Asya donates to and assists suggestions received from employees are since 2008. foundations and associations that work for given a response. Every year, the Bank the public good, supports cultural performs an assessment of employee publications and broadcasts, and sponsors suggestions that are implemented and Relations with Customers and suppliers congresses and conferences on banking presents awards based on their success. and the economy in general. Bank Asya employees: During 2011, 2.091 suggestions were Bank Asya is respectful of people, received from the Bank’s employees. • Provide accurate, complete and timely individual rights and liberties, and the information on all matters during every environment. Human Resources Policy stage of every relationship involving all the products and services that are The Bank takes the requirements thereof The basic principles of Bank Asya’s Human offered to the Bank’s customers. into account in all of its business Resources policy are to: • Are obliged to uphold and carefully processes, and strives materially and morally to fulfill those requirements at every • Conduct personnel planning in terms of maintain the confidentiality of all both quality and quantity, employing information and documents about opportunity. customers that they may have access personnel who fit the Bank’s business The Bank is not a respondent to any legal and the country’s culture, to and not to reveal anything to anyone other than those individuals and entities action on account of any environmental • Maintain employee productivity and that have the explicit legal authority to damage. effectiveness at the highest levels, demand such information and • Provide all personnel with opportunities documents. Penalties Imposed by Public for professional, personal, and social • Regard quality as an essential Authorities development through effective training prerequisite for supplying any service plans and programs, During the reporting period, the Bank was that is intended to satisfy customer assessed a total amount equal to 0,08% of • Maintain the highest degree of morale needs and expectations; make every and motivation among employees at possible effort to deploy the its profit in fines by a variety of public every level, technological infrastructure and qualified authorities on account of conduct in • Safeguard and improve the employees’ human resources that are the two violation of provisions of laws and material and moral rights, fundamental elements of this concept in regulations; Bank Asya paid all of the fines. such a way as to achieve continuous improvement in service quality.
075 Governance Informations and Implementations of Corporate Governance Principles
Report on Compliance with Corporate Governance Principles
BOARD OF DIRECTORS Risk Management and Internal • Determines the forms of any and all Control Mechanism procedures pertaining to the objectives the Company is founded on; Structure and Formation of Bank Asya has created an effectve internal • Determines, stipulates and decides the board of Directors; Non- control and risk management system within upon matters pertaining to the Executive Members the framework of the requirements of the assignment, promotion, dismissal, Banking Law and other applicable laws Board of Directors are constituted of annual salaries and expense allowances and regulations. of those who have signing authority, of chairman and six members. the CEO and especially of those who This system consists of three separate Members of the Bank’s Board of Directors report directly to the CEO, and of other units: the Internal Control Center, the Risk are elected in accordance with Article 32 of key personnel; Management Department and the Internal the Bank’s Articles of Association and the • Resolves to open branches, offices, Audit Department. All three units report requirements of the Banking Law. liaison offices and regional offices and directly to the Board of Directors. decides the authorities to be granted to Qualifications of the Members of them within the framework of applicable the board of Directors Duties and Authorities laws and regulations; of the Bank’s Board of • Decides upon the principles pertaining The qualifications of the members of the to real estate properties and equity Boards of Directors of banks are stipulated Directors stakes that are to be bought or sold on in the Banking Law. Bank Asya complies The duties and authorities of Bank Asya’s behalf of the Company; with these requirements in the election of Board of Directors are governed by Article • Performs all the duties stipulated in the its Board members. 35 of the Bank’s Articles of Association, Turkish Commercial Code and in other according to which the Board may decide applicable laws, regulations and Mission, Vision, and Strategic on any matter that does not require a administrative provisions; deals with all Objectives of the Company decision by the General Assembly of matters other than those assigned to shareholders. the General Assembly of Shareholders The Board of Directors has formulated the or to the Statutory Auditors by laws or under these Articles of Association. Bank’s vision and mission in a clear and Specifically, the Board of comprehensible way; these are published Directors: The Board of Directors may, when it deems in the annual reports and on the Bank’s necessary as stipulated in Article 319 of the website. • Prepares and approves internal Turkish Commercial Code, decide to regulations governing which matters delegate its powers to represent and Bank Asya’s mission and vision are pertain to the Company’s internal affairs presented below. administer the Company to one or more of and may be dealt with by CEO and its members, managers or to committees Mission: To contribute to shareholder value which matters only may be dealt with consisting there of for a period of time and and the Turkish economy by developing by means of Credit Committee or the under such terms and conditions as it Board of Directors decisions; modern banking services within the deems appropriate. framework of interest-free banking • Reviews all matters deemed necessary principles and satisfying customer needs and continuously oversees day-to-day The authority to extend credit rests with the and expectations with a “different solutions administrative activities (for which the Board of Directors. The Board of Directors Board of Directors may assign for different expectations” approach. is responsible for formulating policies responsibility to individual members); pertaining to extending and approving Vision: To be a respected, trusted and • Prepares the Bank’s annual balance credit and to other administrative effective bank that provides service at sheet and profit & loss statement; principles; ensuring that these policies are world standards through the products it submits reports that review the Bank’s applied and followed; and taking all develops. activities during the year and profit necessary measures. The Board of distribution proposals to the General Directors may delegate its authority to During the reporting period, the Board of Assembly of shareholders; specifies and extend credit to a credit committee or to a Directors regularly reviewed and monitored makes arrangements for cash positions CEO in accordance with the requirements the Bank’s performance towards achieving and guarantees taking the requirements of applicable laws and within the its strategic goals and provided guidance of applicable laws into account; makes framework of principles and procedures to on such issues. the statutory auditors’ reports available be determined by the Board. for examination 15 days prior to the General Assembly Meeting of Shareholders;
076 Bank Asya 2011 Annual Report
Operating Principles of the Decisions made by the Board of Directors The committees, which have been set up, board of Directors are recorded the same day, in a manner are active in compliance with the indicating the date and sequential order of requirements of law, and on which the The Board of Directors convenes when each resolution, in a register which has Bank’s Board members serve, include the necessary and/or upon an invitation of the been certified in accordance with the following: Chairman. Any member may submit a requirements of the Turkish Commercial • Corporate Governance Committee written request to the Chairman asking for Code and the Banking Law pertaining to a meeting to be convened. According to books of account and whose pages have • Credit Committee the Bank’s Articles of Association, the been sequentially numbered. Every • Audit Committee Board of Directors must convene at least resolution must be undersigned by the • Assets and Liabilities Committee four times during a fiscal year. However, the members of the Board of Directors who • Information Technologies (IT) Strategy tradition at Bank Asya is for Board voted for it. meetings to be held regularly at weekly or and Steering Committee • Discipline Committee biweekly intervals except under exceptional Prohibition on Doing business or circumstances. This tradition was upheld Competing with the Company • Project Finance Credit Committe during 2011. • Pricing Committe The Chairman and the Members of the Board of Directors meetings are held at the Board of Directors are prohibited from Company’s headquarters. However, a Financial benefits Provided to engaging in business with the Company Board of Directors meeting may be held at the board of Directors and competing with the Company pursuant some other location, city and/or country to Articles 334 and 335 of the Turkish The Chairman and members of the Board with the approval of a majority of the Commercial Code. of Directors are paid a fee for each Board members. meeting that they attend. The amount and However, the General Assembly of Board of Directors meetings are conducted type of such payments are determined by Shareholders may authorize the Chairman according to agendas that are provided to the General Assembly. and all or any number of Board members members prior to the meetings. Board to engage in such business or competition. members and statutory auditors may request that the Chairman add to the This matter is governed by Article 42 of the agenda any issues that they wish to have Bank’s Articles of Association. discussed. The Board of Directors convenes in the Code of Ethics presence of a simple majority of its At the Ordinary General Assembly meeting membership. Resolutions are passed by a held on 31 March 2006, it was decided simple majority of the members who are that the “Principles of Ethics of Banking” present. Decisions about a proposal published by the Participation Banks advanced by any member may be made Association of Turkey, of which Bank Asya by obtaining the written consent of other is a member, shall be adopted in the members so long as none of them request conduct of the Bank’s activities as well. that that the matter be discussed in a meeting. However, decisions made in this Number, structure, and way without a meeting require an unanimous vote. Every member of the Independence of Committees Board of Directors is entitled to one vote. Established by the board of Neither the Chairman nor any other Board Directors member may cast votes on behalf of any Pursuant to the Board of Directors member who is absent from a meeting. resolution dated 2 February 2006, the If the voting on an issue under Bank has created an “Audit Committee” consideration results in a tie at any and a “Corporate Governance Committee” meeting, the matter is left to be discussed in accordance with Article 24 of the in the next meeting. If the tie cannot be Banking Law concerning the formation of broken at the next meeting, the proposal is audit committees and other applicable deemed to have been rejected. laws, regulations and administrative provisions.
077 Governance Informations and Implementations of Corporate Governance Principles
The Bank’s Distribution Policy
Bank Asya is adopting the strategy of procuring higher levels of external support services in order to reduce costs, increase revenues, focus its Human Resources on its core activities, increase the speed and efficiency of operations, and benefit from the technology and expertise that it does not possess in-house. The support services Bank Asya has that fall within the scope of “Regulation on Bank’s Procurement of Support Services and Authorization of Such Service Providers” are as follows.
No Outsourcing Service Name of the outsourcing Company 1 Moneygram System Developments Moneygram Payment Systems, Inc 2 Investment Services Bizim Menkul Değerler 3 Debit Card and Credit Card Printing Plastikkart Akıllı Kart İletişim Sistemleri San ve Tic A.Ş. Provena Bilişim ve Ödeme Çözümleri Tic. Ltd. Şti. 4 Raw Card Supply Services Mapikart Tanıtım Hizmetleri ve Dış Tic. Ltd. Şti. Kuryenet Motorlu Kuryecilikve Dağıtım Hizmetleri A.Ş. 5 Card Distribution Services Aktif İleti ve Kurye Hizmetleri A.Ş. Hobim Bilgi İşlem Hizmetleri A.Ş. 6 Account Statement Printing and Distribution Services Cihan Medya Dağıtım A.Ş. Fujitsu Technology Solutions Bilişim Ltd. Şti. Teknoser Bilgisayar Teknik Hizmetler San. ve Dış. Tic. A.Ş. Verifone Elektronik ve Danışmanlık Ltd. Şti. Ingenico Ödeme Sistem Çözümleri A.Ş. 7 POS Device and Virtual POS Operation Transactions Seri Bilgi Teknolojileri Destek Hizmetleri ve Tic. Ltd. Şti. İnnova Bilişim Çözümleri A.Ş. G2 Web Services, Llc Mobilgi Teknolojileri Ltd. Şti. BKM – Bankalararası Kart Merkezi A.Ş. 8 Card Exchange and Calculation Services Visa Mastercard 9 Check Book Printing Services Güzel Sanatlar Çek Basım Ltd. Şti. Oracle Bilgisayar Sistemleri Ltd. Şti. Oracle, Sybase IQ Database and Business Objects 10 Sap Türkiye Yazılım Üretim ve Tic. A.Ş. Reporting Systems Services Sybase Türkiye Yazılım Securverdi Güvenlik Hizmetleri A.Ş. 11 ATM Case Supply & Repair Bantaş Nakit Kıymetli Mal Taşıma ve Güvenlik Hiz. A.Ş. Brink’s Güvenlik Hizmetleri A.Ş. Ncr Bilişim Sistemleri Ltd. Şti. Wincor Nixdorf Bilgisayar Sistemleri A.Ş. 12 ATM Repair & Maintenance Banksoft Bilişim Bilgisayar Hizmetleri Ltd. Şti. Termtech Bilişim Bilgisayar Teknolojileri Tic. Ltd. Şti. 13 A101 Stores Cash Collection Services G4S Güvenlik Hiz. 14 EFT Systems Transcations Global Bilişim A.Ş.
078 Bank Asya 2011 Annual Report
No Outsourcing Service Name of the outsourcing Company 15 Check Data Entry Transactions Aton Ltd. Şti. Bonded Kayıt Sistemleri Dağıtım Hizmetleri ve Ticaret A.Ş. 16 Archieve Services Arşiv Kütüphane Belge-Bilgi Yönetimi ve Bilişim Sistemleri Ltd. Şti. Experian Decision Analytics, Emeai 17 Retail Loan & Credit Card Applications and Scoring KKB Kredi Kayıt Bürosu A.Ş. 18 Asya Exertise Transactions Key İnternet Hizmetleri Ltd. Şti.
Validator, EMV Scripting, Card Perso Software and Smartsoft Information Technologies 19 Development Services Adam Elektronik Ltd. Şti. 20 Overdue Payment Reminder Calls CMC İletişim Bilg. Reklam ve Dan. Hizm. San. Tic. A.Ş. Information and Collection Initiative for Customers 21 Hamzazade Bilişim Yönetim ve Danışmanlık A.Ş. Deemed Insolvent Turkcell İletişim Hizmetleri A.Ş. 22 SMS, URLand Mobile Signature Services Avea İletişim Hizmetleri A.Ş. Vodafone Telekomünikasyon A.Ş. Smartsoft Information Technologies 23 Password Transactions Kobil Systems Ltd. 24 Call Center Services ITD İletişim Teknoloji Danışmanlık Tic. A.Ş. Infotech Bilişim ve İletişim Teknolojileri A.Ş. 25 Mobile Branch Pozitron Yazılım A.Ş. İdeal Bilişim Hiz. San. ve Tic. Ltd. Şti. 26 SWIFT Orange Business Services S.A. S.W.I.F.T. SCRL
079 Governance Informations and Implementations of Corporate Governance Principles
The Bank’s Distribution Policy
Principles of the Banks profit distribution policy are governed by Article 54 of the Articles of Association, accordingly: The Companys net profit consists of the amount remaining after all of the Company’s expenses, depreciation and amortization allowances, and various provisions which have been paid or are accrued have been deducted from its income as determined at the end of the fiscal year. Net profit shall, after the deduction of prior-year losses, if any, be apportioned in the order indicated below. 1. 5% of the net profit shall be set aside as a legal reserve as per Turkish Commercial Code Article 466/1. 2. From the amount remaining, a first dividend shall be set aside at a percentage and in an amount determined by the Capital Markets Board. 3. Of the remaining profit: º A portion of up to 2% shall be set aside for members of the Board of Directors, º A portion of up to 5% shall be set aside for the Bank’s managers and employees. The General Assembly is authorized to carry forward to the next year or set aside as extraordinary reserve some or all of the net profit remaining after the deduction and allocation of the amounts in paragraphs (1), (2), and (3) above. The Board of Directors may recommend such course of action to the --General Assembly if it deems necessary. (The provisions of Article 466/3 of the Turkish Commercial Code are reserved.) Subject to the provisions of the Capital Markets Law, the General Assembly is authorized to distribute all or some of the remaining profit as dividends to shareholders in the manner indicated below or else to set aside some or all of it as extraordinary reserve. a) Distribute all of it in cash, b) Distribute all of it as shares of stock, c) Distribute a specified percentage as cash and a specified percentage as shares of stock and retain the remainder in the Company, d) Distribute neither cash nor shares of stock and retain the entire amount in the Company.
The Board of Directors may make recommendations to the General Assembly on this subject if it deems necessary. Pursuant to the provisions of this article, the Board of Directors shall determine the date(s) on which dividends are to be paid.
The Bank’s Profit Distribution Proposal for 2011
At a meeting of the Board of Directors on 23 February 2012, it was resolved that TRY 3.805.418,26 - representing 75 percent of the total sales gain of TRY 5.073.891,01 - of a real estate located in Altunizade/İstanbul shall be deposited in the special found pool as per article 5-1/e of Corporate Tax Law No.5520, and the sum remaining after the amounts that must be set aside as required by law and the Articles of Association have been set aside from the net profit shown in the balance sheet dated 31 December 2011 shall not be distributed but instead shall be retained as extraordinary reserve in order to strengthen the Bank’s equity resources and that this course of action shall be presented for approval at the Ordinary General Assembly meeting.
080 Bank Asya 2011 Annual Report
Matters Regarding The Ordinary General Assembly Meeting
Agenda of the Asya Katılım Bankası A.S. Ordinary General Assembly Meeting dated 31 March 2012
1- Opening the meeting and forming the presiding committee 2- Authorizing the presiding committee to sign the minutes of the meeting 3- Reading and deliberating the Board of Directors’ annual report, the statutory auditors’ report, and the independent auditor’s report for 2011 4- Examining, deliberating and ratifying the balance sheet and profit & loss statement; reading and deliberating the Board of Directors’ profit distribution proposal; deciding how to distribute profits 5- Submitting for approval the appointment made during the year to fill the vacant seat on the Board of Directors 6- Acquitting the Company’s Board members and statutory auditors of their fiduciary responsibilities 7- Discussion and resolution of the amendment under the title “Formation of Board Of Directors “ of item 32 of the bank’s Articles of Association. 8- Selection of members of the board of directors and the board of statutory auditors, and determination of their terms of office, 9- Deciding the salaries and entitlements of the members of the Board of Directors and statutory auditors 10- Authorizing the Board of Directors to elect the members of the Senior Advisory Committee and to determine their salaries payments 11- Submitting for approval the independent auditors chosen by the Board of Directors for a one-year term for the 2012 fiscal year 12- Providing information about the contributions and donations made during 2011 13- Reading and deliberating changes made in the public disclosure policy principles within the framework of the Bank’s corporate governance principles 14- Authorizing the Company’s Board members to engage in activities governed Articles 334 and 335 of the Turkish Commercial Code 15- Petitions and suggestions.
081 Governance Informations and Implementations of Corporate Governance Principles
Detailed Information on Agenda Items
1- Opening the meeting and forming the In accordance with the resolution at the The old text presiding committee meeting of the Board of Directors on 23 B- FORMATION OF THE BOARD OF Explanation: Pursuant to the applicable February 2012, it shall be poposed that DIRECTORS provisions of the Turkish Commercial Code “TRY 3.805.418,26-representing 75 ARTICLE 32: and the Ministry of Customs and Industry percent of the total sales gain of The Board of Directors shall consist of regulations, a president and his/her 5.073.891,01-of a real estate located in seven members to be elected by the committee (presiding committee) will be Altunizade/İstanbul shall be deposited in General Meeting among the candidates, elected to conduct the General Assembly the special found pool as per article 5-1/e who are necessarily shareholders, meeting. of Corporate Tax Law No.5520, and the nominated by the minimum 51% of the 2- Authorizing the presiding committee to sum remaining after the amounts that must be set aside as required by law and total votes of the Group (A) shareholders sign the minutes of the meeting present at that meeting. General Manager, Explanation: Pursuant to the applicable the Articles of Association have been set aside from the net profit shown in the and in his absence Assistant General provisions of the Turkish Commercial Code Manager are natural members of the and the Ministry of Customs and Industry balance sheet dated 31 December 2011 shall not be distributed but instead shall be Board of Directors. Members of the Board regulations, the General Assembly will of Directors shall have the conditions and authorize the presiding committee to retained as extraordinary reserve in order to strengthen the Bank’s equity resources” qualifications required by the Banking Law. record and sign the decisions made at the The Board of Directors elects a chairman meeting. 5- Submitting for approval the and a deputy chairman among its 3- Reading and deliberating the Board of appointment made during the year to fill members. The members of the Board of Directors’ annual report, the statutory the vacant seat on the Board of Directors shall have a term of office of auditors’ report, and the independent Directors three years. Any Director whose term of auditor’s report for 2011 Explanation: The Board of Directors’ office ends can be re-elected. In case of Explanation: The Board of Directors’ resolution to appoint Ali Celik to fill the seat any vacancy in the Board of Directors due annual report, the statutory auditors’ vacated by the resignation of Salih Sarıgül to any reason, the remaining Directors report, and the independent auditor’s from the Bank’s Board of Directors will be appoint a member of the Board of report for the 1 January 2011 to 31 presented for the General Assembly’s Directors among the shareholders for the December 2011 reporting period will be approval. vacancy. This appointment is submitted to read and deliberated. 6- Acquitting the Company’s Board the approval of the following first general These reports can be obtained from the members meeting of shareholders. General Meeting Company’s headquarters and from its Explanation: Pursuant to the applicable of Shareholders may dismiss any member website (www.bankasya.com.tr/yatirimci_ provisions of the Turkish Commercial Code of the Board of Directors, without a right of iliskileri/faaliyet_raporları.jsp, www. and the Ministry of Industry and compensation to the dismissed Director. bankasya.com.tr/yatirimci_iliskileri/ Commerce regulations, the General The terms of office of Managers are not denetim_raporları.jsp). Assembly will vote on acquitting the dependent on the term of office of the Compan’s Board members and its members of the Board of Directors. 4- Examining, deliberating and ratifying the statutory auditors of their fiduciary Managers can be appointed with a longer balance sheet and profit & loss responsibilities for the Company’s activities period than the term of office of the statement; reading and deliberating the and transactions in 2011. Directors or on contracts with indefinite Board of Directors’ profit distribution 7- Discussion and resolution of the periods. The powers of the authorized proposal; deciding how to distribute signatories shall remain in force until their profits amendment under the title “Formation of Board Of Directors “ of item 32 of the powers as authorized signatory are Explanation: The Board of Directors’ cancelled by the Board of Directors. balance sheet and profit & loss statement bank’s Articles of Association. for 2011 will be read, deliberated and Explanation: It will be submitted for the voted on at the General Assembly approval of the General Assembly that the meeting. The financial statements may be number of members of the board of obtained from the Company’s directors is increased from 7 to 9, and the headquarters and from its website (www. term“ vice-chairman” mentioned in article bankasya.com.tr/yatirimci_iliskileri/ 32 to be altered as “deputy chairman”. faaliyet_raporları.jsp).
082 Bank Asya 2011 Annual Report
The new text: Therefore,selection of members of the 12- Providing information about the B- FORMATION OF THE BOARD OF board of directors and the board of contributions and donations made DIRECTORS statutory auditırs and deternination of their during 2011 ARTICLE 32: terms of office shall be submitted for the Explanation: Pursuant to Article 7/b of approvalof General Assembly. the Capital Markets Board Communique’s The Board of Directors shall consist of nine Pursuant to Article 32 of Association, the Series: IV No: 27, the General Assembly members to be elected by the General must be informed about any donations Meeting among the candidates, who are Board of Directors are elected by of the sharehoders having at least pct 51 of the made during the reporting year. This item necessarily shareholders, nominated by is not presented to the General Assembly the minimum 51% of the total votes of the total votes of group A stockholders’ present at the General Assembly for approval; it is included in the agenda Group (A) shareholders present at that for the sole purpose of informing the 9- Deciding the salaries and entitlements meeting. General Manager, and in his General Assembly. absence Assistant General Manager are of the members of the Board of natural members of the Board of Directors. Directors and statutory auditors 13- Reading and deliberating changes Members of the Board of Directors shall Explanation: Pursuant to the applicable made in the public disclosure policy have the conditions and qualifications provisions of the Turkish Commercial Code principles within the framework of the required by the Banking Law. The Board of and the Ministry of Industry and Bank’s corporate governance principles Directors elects a chairman and a vice Commerce regulation, the salaries and Explanation: Amendments made in the chairman among its members. The meeting attendance fees to be paid to the public disclosurepolicy principles shall be members of the Board of Directors shall members of the Board of Directors will be read and discussed. have a term of office of three years. Any determined and presented to the 14- Authorizing the Company’s Board Director whose term of office ends can be shareholders for approval. members to engage in activities re-elected. In case of any vacancy in the 10- Authorizing the Board of Directors to governed Articles 334 and 335 of the Board of Directors due to any reason, the elect the members of the Senior Turkish Commercial Code remaining Directors appoint a member of Advisory Committee and to determine Explanation: The issue of authorizing and the Board of Directors among the their salaries payments allowing members of the Board of shareholders for the vacancy. This Explanation: A proposal authorizing the Directors to conduct business with and appointment is submitted to the approval Board of Directors to choose the members compete against the Company as of the following first general meeting of of the Senior Advisory Committee and to stipulated in Articles 334 and 335 of the shareholders. General Meeting of determine their salaries payments as per Turkish Commercial Code will be Shareholders may dismiss any member of Article 45 of the Bank’s Articles of presented for approval. Under Articles 334 the Board of Directors, without a right of Association will be presented for the and 335 of the Turkish Commercial Code, compensation to the dismissed Director. approval of the General Assembly. members of the Board of Directors may The terms of office of Managers are not compete against and conduct business 11- Submitting for approval the dependent on the term of office of the with the Company only with the independent auditors chosen by the members of the Board of Directors. permission of the General Assembly. The Board of Directors for a one-year term Managers can be appointed with a longer issue of permitting the Members of the for the 2011 fiscal year period than the term of office of the Board of Directors to conduct such Explanation: Pursuant to its resolution Directors or on contracts with indefinite transactions will be presented for the No: 2254 dated 08 March 2012, the periods. The powers of the authorized General Assembly’s approval. Board of Directors resolved to “enter into a signatories shall remain in force until their one-year contract with “DRT Bağımsız 15- Petitions and suggestions. powers as authorized signatory are Denetim ve Serbest Muhasebeci Mali cancelled by the Board of Directors. Müşavirlik A.Ş. (Deloitte)”, which had previously conducted the Bank’s 8- Selection of members of the board of independent auditing activities in previous directors and the board of statutory periods, to perform Bank Asya’s auditors, and determination of their independent auditing tasks in 2012 and to terms of office, present this contract for the General Explanation: Three-year term of office of Assembly’s approval at the next Ordinary the present members of the board of General Assembly Meeting.” directors expired.
083 Bank Asya, maintaining its pioneering position in the field of service quality and high- technology, is determined to maintain its steady and healthy growth. Added Value Financial Informations and Risk Management
To the General Assembly of Asya Katılım Bankası A.S. Concise Internal Auditors Report
- Company Name Asya Katılım Bankası A.Ş. - Headquarters İstanbul - Capital 900.000.000.- TRY - Principal business activity All activities authorized for participation banks
Names, terms of office, and company: Atıf Bilgin, Irfan Hacıosmanoglu. Threeshareholder / employee internal auditors year terms. Company shareholders. Number of Board of Directors meetings: They attended at least two of the Board meetings held attended and number of internal auditors each month. The internal auditors also convened in meetings held committee on the same days.
Scope, dates and results of inspections: The books of account were checked and inspected performed on the Company’s accounts, on 18 June 2010 and 12 November 2010. Books and documents It was ascertained that cash items were in accordance with book of account entries.
Number and results of inspections conducted: As a result of the inspections conducted as of the in the Company’s Treasury pursuant to end of each month, we observed that all subsection 1/4 of Article 353 of the Turkish deposits and securities were present and in keeping Commercial Code with the records.
Charges or complaints of improprieties: No charges or complaints of improprieties were received and the action taken referred to us in 2011.
We have examined the accounts and transactions of Asya Katılım Bankası Anonim Sirketi for the period 01/01/2011-31/12/2011 for compliance with the reqirements of the Turkish Commercial Code, the Company’s Articles of Association, other applicable laws and regulations, and generally accepted accounting principles and standards.We determined that the income statement for the period 1 January 2011 to 31 December 2011 accurately and realistically reflects the results of business activities during this period and the proposed distribution of profit is in compliance with the requirements of the laws and the Company’s Articles of Association. In our opinion the enclosed balance sheet drawn up as of 31 December 2011, the contents of which we endorse, accurately reflects the true financial standing of the Company on that date; and we hereby recommend that the balance sheet and income statement be approved and that the members of the Board of Directors be acquitted of their fiduciary responsibilities.
THE INTERNAL AUDITORS
Atif Bilgin İrfan Hacıosmanoğlu
086 Bank Asya 2011 Annual Report
Five-year Summary Financial Information Including The Reporting Period
Selected Assets Items (TRY thousand) 2007 2008 2009 2010 2011 Liquid Assets 1.382.702 1.247.486 2.572.230 2.666.154 2.818.654 Loans 4.609.665 6.381.322 8.355.346 11.060.267 13.451.522 Fixed Assets 112.169 250.726 319.090 359.961 462.416 Total Assets 6.260.048 8.108.829 11.608.955 14.513.419 17.190.099
Selected Liabilities Items (TRY thousand) 2007 2008 2009 2010 2011 Deposits 4.697.750 5.842.821 9.136.578 11.166.582 12.397.043 Borrowings 312.921 457.552 191.461 622.237 1.457.830 Shareholders’ Equity 853.856 1.403.692 1.707.894 1.941.667 2.137.432 - Paid-in Capital 300.000 900.000 900.000 900.000 900.000 - Net Period Profit 221.337 246.529 301.281 259.962 216.096 Total Liabilities 6.260.048 8.108.829 11.608.955 14.513.419 17.190.099
Income statement (TRY thousand) 2007 2008 2009 2010 2011 Profit Share Income 805.275 1.068.206 1.305.652 1.206.930 1.278.154 Profit Share Expenses 388.117 566.816 705.805 613.392 646.930 Income Other than Profit Share 297.671 420.508 616.816 479.817 489.546 Expenses Other than Profit Share 441.928 609.994 838.271 749.057 851.638 Pre-tax Profit 272.901 311.904 378.392 324.298 269.132 Provision for Taxes 51.564 65.375 77.111 64.336 53.042 Net Period Profit 221.337 246.529 301.281 259.962 216.090
087 Financial Informations and Risk Management
Assessment of Financıal Position, Profitability and Debt Service Ability
During 2011, Bank Asya continued to be a 57% as of December 2011. Deposits were Focusing on liquidity due to the lingering leader among participation banks in terms up 11% this year to TRY 12.4 billion, from effects of the global economic crisis on of total assets, cash loans, non-cash loans TRY 11,2 billion in 2010. Bank Asya’s international markets in 2011, the Bank’s and deposits. broad deposit base is indicative of a liquid assets constituted 20% of its total favorable position from the standpoint of assets, which favorably impacted the Bank Asya had a successful year thanks to the Bank’s financing of its assets.Bank Bank’s debt service ability. Deposits, which its sound and robust balance sheet that it Asya’s strong capital structure, with a net are the Bank’s most important funding structured in a timely and appropriate profit of TRY 216 million, resulted in a 10% source, also have a positive effect on Bank manner, and its solid equity capital. Bank increase in the Banks shareholders’ equity Asya’s short-term debt servicing ability Asya’s total assets increased by 18% on on the previous year to TRY 2.1 billion as thanks to their broad base, sound the last year and reached TRY 17.2 billion end of 2011. composition and longer maturity compared in 2011. The growth in the Bank’s assets to the sector average. stemmed primarily from its lending. Loans The major sources of the Bank’s profitability were up 22% compared to the previous were profit share income from loans and The maturity of deposits were 140 days as year and now constitute 79% of the Bank’s commission income from non-cash loans, of the end of 2011, and this rate is total assets. which resulted from channeling funds considerably above the industry average. obtained from the 11% increase in deposits Deposits continued to be Bank Asya’s to productive ventures. major source of funding in 2011. The share of deposits in the Bank’s total liabilities Ever striving to provide better service, Bank stood at 72% in 2011. Asya opened 25 branches in 2011; as a result of these investments, the Bank’s This share is significantly higher than the service network expanded to 200 sector average, which was branches.
088 Bank Asya 2011 Annual Report
Assessment of the Audit Committee’s Internal systems and Their Operation
The Audit Committee reports the results of The Board of Inspectors also provides the The internal control system, which its audit and risk management activities in Board of Directors with the assurances and encompasses every employee of the Bank order to ensure that an effective internal recommendations as needed on the issues at every level, seeks to ensure that the control, internal audit and risk management of conducting the Bank’s activities in protection of the Bank’s assets, the system has been established throughout the compliance with the the requirements of effectiveness and productivity of its Bank. To this end, the Committee prepares applicable laws and regulations as well as activities, the reliability of its accounting and an “Audit Committee Activity Report” at with the Bank’s strategy, policies, principles financial reporting system, and the conduct regular intervals and submits it to the Board and objectives. Internal audit activities are of all the Bank’s activities are in compliance of Directors. The Audit Committee convened carried out at all headquarters units, with internal and external regulatory 40 times during 2011. The Committee held branches, and consolidated subsidiaries in requirements and with the Bank’s policies. four meetings with the independent auditors accordance with an annual audit plan that is in order to evaluate the independent audit approved by the Board of Directors. The Internal Control Department reports activities. The Board of Inspectors reports the results directly to the Board of Directors and is of its activities on a quarterly basis to the responsible for the design and management During 2011, the Audit Committee regularly Board of Directors through the Audit of the Bank’s internal control system and met with personnel of the Board of Committee. Under the heading of branch internal control activities in accordance with Inspectors, Internal Control Department and audit activities, inspections were conducted the requirements of the Banking Law and of Risk Management Department. The Audit at 68 branches from the perspective of the associated Internal Systems Committee closely monitored the activities credit risk, operational risk and Regulations. In order for the Department to of these units, all of which report directly to organizational effectiveness; the results of fulfill its responsibility more effectively, the the Committee. The Audit Committee these inspections along with risk-mitigating outcomes of the “Control Self-Assessment reports the results of its audit and risk recommendations were reported to the Workshops” that are organized quarterly management activities in order to ensure relevant departments and senior managers. with the participation of the Bank’s senior that an effective internal control, internal Under the heading of process audits managers are given a key role in the design audit and risk management system has conducted at headquarters units, eight of the internal control systems. been established throughout the Bank. business processes and under the audits At these Workshops, the effectiveness, To this end, the Committee prepares an conducted at consolidated subsisidaries adequacy and coherence of existing “Audit Committee Activity Report” at regular three subsidiaries were inspected and the controls performed on business processes intervals and submits it to the Board of results were reported to the relevant units are evaluated jointly with the relevant Directors. The internal audit and risk and senior managers. departments; the measures that need to be management findings, which are received Moreover, in order to underpin for “the taken to improve the control system and to from the internal systems units and reported Management Declaration” which will be ensure the smooth operation of internal to the Board of Directors by the Committee, drawn up by the board of directors fort he control activities are identified. The Internal were evaluated with the relevant senior year 2011, test studies on banking Control Department oversees the executives. Guidance is provided as needed processes and information systems implementation of the measures taken in to mitigate risks and improve processes and processes were completed. In addition to conjunction with the business unit via action practices. the activities described above, the Board of monitoring forms. The Committee also performs the statutorily Inspectors also engaged in three Under the heading of On-Location Control mandated duties of selecting independent examinations and investigations as needed activities, 296 branch control checks were audit, support service, evaluation and rating at the Bank and among its consolidated performed in 2011.Furthermore, under the firms and overseeing their respective subsidiaries. Based on the results of its audit heading of Remote Control activities, the relationships with the Bank. Within this activities, the Board performs risk analyses, Department performed credit collateral scope, the Committee met with officers of makes recommendations and provides checks over the system for locations outside the independent audit firm. During these advice on administrative, technilogical, of the departments and branches; meetings, the independence of the fiscal, financial, legal and organizational inspections were also carried out in independent audit firm in its relationship with issues in order to help mitigate the risks accordance with scenarios formulated to the Bank as well as the adequacy of the within the scope of its inspections. identify erroneous/non-routine transactions resources allocated for the Bank’s and fraud using computer programs (ACL). independent audit and the auditor’s report Internal Control Department As part of the information system controls, a were all evaluated. Control Self-Assessment Workshop was The Internal Control Department executes conducted for five IT processes and the the functions of designing the Bank’s Board of Inspectors existing controls were evaluated in light of internal control systems and activities as COBIT requirements. Under the heading of The Board of Inspectors conducts well as how these tasks will be performed; Compliance Control activities, the risk-focused audits at the Bank’s ensuring that these control activities are Department performed compliance checks headquarters units, branches, and performed; and, based on the results of the of 14 new products, services and consolidated subsidiaries in accordance controls, taking the necessary measures to applications in 2011. Apart from these,59 with international standards. improve the control system and to ensure compliance control actvities on various the smooth operation of internal control opics were conducted as well. activities.
089 Financial Informations and Risk Management
Risk Management Strategies on the base of Risk Types
Risk Management Department In addition, early warning mechanisms that consideration of credit and political risk are focused on spotting in advance any factors periodically and submits for the The Risk Management Department is credit risks to which the Bank may be information of the senior management. responsible for the deployment of the risk exposed make it possible to continuously management system that the Bank has set review the financial circumstances, credit Market Risk up to detect all risks arising from the Bank’s ratings and credit needs of borrowers with activities and for ensuring that these risks are heightened credit risk and to reconsider their Market risk is measured and assessed using managed in compliance with the credit worthiness and limits as appropriate. procedures that comply with applicable laws requirements of applicable laws and and with Bank Asya’s “Market Risk regulations. The policies and implementation Bank Asya classifies its loans in two Management Policy.” The Bank uses the procedures that facilitate the effective categories, “On-balance sheet” and internationally accepted “Value at Risk” (VaR) execution of this system throughout the “Off-balance sheet”, and it determines method, which conforms well to Bank Asya’s Bank have been defined; risks are measured, portfolio particulars, sectoral/ regional/group own market activities. VaR is an expression controlled and reported on an ongoing basis. concentrations, and performance of the likelihood, at a specified confidence accordingly. On the basis of risk-return interval, of a loss that the Bank’s portfolio in Bank Asya’s internal control system units are balances, collateral worthiness, and bank risk factors within a specified period of time. supported with qualified personnel in order asset quality, a determination is made as to to meet the increased need for auditing whether the provisions set aside for loans are Bank Asya’s VaR model has been developed arising from the rapid change in and growth adequate or not. Scenario analyses are in-house and is employed simultaneously of its banking activities and to achieve a developed in order to more proactively and in conjunction with the “Standardized function-based risk management and manage credit risk exposure. Volatilities in Approach”, whose use is prescribed by internal auditing system. credit risk and their impact on the Bank’s public authorities. The amount of market risk financial indicators are regularly reported to that the Bank is exposed to based on these Information about Risk relevant senior managers at the Bank. calculations is reported daily to the senior management as are the results of back tests Management Policies Applied The Bank makes use of an internal rating According toType of Risks that are performed also on a daily basis to system for corporate and commercial loans assess the model’s reliability. By means of Bank Asya conducts its risk management in its lending decision mechanisms. This scenario analyses and stress tests that are activities within the framework of credit risk, system is structured so as to facilitate performed using reverse changes in the market risk, liquidity risk, operational risk, integration with statistical models that allow Bank’s own portfolio and in the market prices reputational risk, and strategy risk credit risk to be quantified and managed. that are taken into account, the value of the management policies that it has established The rating system has been made Bank’s portfolio is reconsidered under in accordance with the requirements of particularly sensitive to existing and potential existing and potential market conditions. The applicable laws, rules and regulations. These impairments in a loan’s structure and this is effects that the results of the scenario policies facilitate management of the what permits it to fulfill its early warning and analyses and stress tests may have on Bank identifying, defining, measuring, monitoring, risk management functions. Financial Asya’s capital adequacy ratio are also controlling and reporting phases for the risks situation analyses of borrowers whose loans separately analyzed and reported. that the Bank is exposed to or is likely to be have become subject to legal action or are exposed to, as well as the mitigation of risks placed under close watch are carried out in The Bank has used the VaR methodology to by a variety of measures and techniques and coordination with all relevant units. The Bank evaluate its market risk since 2007. Market the re-allocation of resources from low-risk monitors early warning signals and ultimate risk information is reported to the Board of to high-risk areas. credit risk limits for its corporate and Directors in a timely and detailed fashion. In commercial loan clients daily and actively addition, in accordance with the “Historical uses this information in lending decisions. Precedent Method”, the Bank established Credit Risk The Bank uses scorecard models developed early warning and ultimate market risk limits Management of credit risk at Bank Asya is by an international firm in order to manage based on VaR calculations assuming a fundamentally rooted in assessing all of the the risks arising from the Bank’s retail lending 10-day holding period and a 99% confidence credit risk arising from the Bank’s lending and credit card portfolio. interval; these limits were approved by a resolution of the Board of Directors. activities. The Bank complies with prescribed With the beginning of a period of increasing policies pertaining to “Lending and Credit importance of country risk management, the Compliance with these commensurate risk Risk Management, in determining customer bank adopting the growth in regions and limits is monitored daily and any violation of and counterparty limits. countries in which financial and political these limits is immediately reported to the stability provided as a goal performs Assets and Liabilities Committee, the Audit analyses which also includes the Committee and the Board of Directors.
Information about Internal system Unit Managers: Name Length of Service Area of Responsibility Educational Background Prof. Experience Hilali Yıldırım 6 years Board of Inspectors Master’s (Banking)/Bachelor’s (Business Administration) 17 years Mahmut Yalçın 3 years Internal Control Department Master’s Human Resources) / Bachelor’s (Business Administration) 12 years Mehmet K. Tümer 6 years Risk Management Department Bachelor’s (Business Administration) 31 years
090 Bank Asya 2011 Annual Report
Liquidity Risk Operational Risk Other Risks Reports which have been prepared in line Bank Asya began reporting its operational In-house reports are regularly prepared on with the applicable provisions of the risk exposure using the “Basic Indicator macroeconomic and financial sector “Regulations on the Measurement and Approach” as of 1 June 2007. The Bank developments and presented to the senior Assessment of the Banks’ Liquidity takes into consideration the impact of management, which contributes to the Adequacy” published by the Banking operational risk exposure on the Capital management of strategic risk. Regulation and Supervision Agency are Adequacy Standard Ratio by means of examined by the Risk Management scenario analyses that forecast the In addition to managing its financial risks, Department, the Treasury Department, and changes in exposure to operational risk for Bank Asya also keeps a close watch on senior management. Measures are taken subsequent years. The amounts exposed the possible effects of political, legislative as needed by the Assets and Liabilities to operational risk are also calculated using and global developments which may cause Committee to ensure that the ratios which the Standard and Alternative Standard economic and/or financial sector volatilities are reported in this way remain within Approaches stipulated by the Banking even though they are not inherently legally prescribed limits. Regulation and Supervision Agency; this financial themselves. For this purpose, the data is duly reported to senior Bank makes use of external risks reports Maturity mismatches of the Bank’s assets management. prepared by the Risk Management and liabilities items and the percentages Department. based on maturity segments are monitored It is expected that these methods will also by means of day-to-day liquidity GAP be used in the Bank’s statutorily mandated Risk Management in analyses. reports once changes in the regulatory Consolidated subsidiaries framework have been made. As part of the Bank’s evaluation of ways to Bank Asya’s standard calculations of its further enhance its liquidity, the Bank Asya accumulates its potential risk exposures and legal obligations are development trend of both participation operational risk losses in a format that also made on a consolidated basis. funds, and loans and syndications from complies with a “risk catalogue” that is abroad are being monitored on a regular based on event classifications. Data about The internal systems-related functions are basis especially in terms of maturity and in actual losses is used as the basis for also performed for the Bank’s subsidiaries. terms of borrowing. creating advanced statistical models that are being planned. Action plans are also Basel Regulations Compliance A core deposits study was conducted and being formulated to prevent the recurrence Initiatives early warning and ultimate liquidity risk of instances of operational risk whose limits were established based on the results financial impact is extraordinarily severe. Taking into consideration the possibility of of the gap analyses in order to qualify the the implementation of “The Basel II loyal participation account holders . Business Continuity Management is an International Convergence of Capital Monitoring compliance with those limits integrated management process that Measurement and Capital Standards” that management decisions are taken into identifies critical situations that the Bank project in the not-too-distant future, the account on a daily basis. may encounter and their potential impact Bank’s efforts to comply with both Basel II on business activities should they actually and Basel II regulations have reached The Bank has formulated a “Liquidity occur. Bank Asya’s Business Continuity advanced stages. Bank Asya regards these Emergency Action Plan” whose aim is to and Disaster Plan was put into effect in regulations as the foundation for a resolve liquidity shortages that it may suffer 2007 as a result of a project undertaken comprehensive risk management culture in the face of such potential developments jointly with a consulting that specializes in that goes far beyond capital adequacy as impairment of asset quality, an increase such matters. The existing plan was calculation issues. in non-perfoming loans, or unexpected revised in 2010 in response to new withdrawals of deposits. regulations and evolving needs. The studies on “the Management Statement” demonstrating assurance of the board of directors’ on the efficiency and productivity of the Bank’s Internal Inspection and Information Systems have been completed.
091 Financial Informations and Risk Management
CREDIT RATINGS AND REPORTS
MOODY’S Foreign Currency Deposit Ba3 TRY Deposit Ba2 Long Term National A3 Individual Rating D
(*) From Moody’s Investors Service report dated 22 February 2012
FITCH RATINGS Long Term Foreign Currency B+ Long Term Turkish Lira B+ Short Term Foreign Currency B Short Term Turkish Lira B Long Term National A-(tour) Individual Rating D
(*) From Fitch Ratings report dated 22 November 2011
092 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
INDEPENDENT AUDITORS’ REPORT, UNCONSOLIDATED FINANCIAL STATEMENTS AND NOTES FOR THE YEAR ENDED DECEMBER 31, 2011
(Translated into English from the Original Turkish Report)
093 Unconsolidated Financial Statements and Accompanying Notes
094 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
INDEPENDENT AUDITORS’ REPORT FOR THE YEAR JANUARY 1, 2011 - DECEMBER 31, 2011
To the Board of Directors of Asya Katılım Bankası A.Ş. İstanbul
We have audited the accompanying balance sheet of Asya Katılım Bankası A.Ş. (the “Bank”) as at December 31, 2011 and the related statements of income, cash flows and changes in shareholders’ equity for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements The Board of Directors of the Bank is responsible for the preparation and fair presentation of the financial statements in accordance with the regulation on “Procedures and Principles Regarding Banks’ Accounting Practices And Maintaining Documents” published in the Official Gazette dated November 1, 2006 and numbered 26333 and Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”) and other regulations, circulars, communiqués and pronouncements in respect of accounting and financial reporting made by Banking Regulation and Supervision Agency (“BRSA”). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the regulation on “Licensing and Operations of Audit Firms in Banking” published in the Official Gazette No: 26333 on November 1, 2006 and the International Standards on Auditing. We planned and performed our audit to obtain reasonable assurance whether the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the consideration of the effectiveness of internal control and appropriateness of accounting policies applied relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Independent Auditors’ Opinion In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Asya Katılım Bankası A.Ş. as at December 31, 2011 and the results of its operations and its cash flows for the year then ended in accordance with the prevailing accounting principles and standards set out as per Article 37 of the Banking Act No: 5411 and other regulations, circulars and communiqués in respect of accounting and financial reporting and pronouncements made by Banking Regulation and Supervision Agency (“BRSA”).
Additional paragraph for the English translation The effect of the differences between the accounting principles summarized in Section 3 and the accounting principles generally accepted in countries in which the accompanying financial statements are to be distributed and International Financial Reporting Standards (IFRS) have not been quantified and reflected in the accompanying financial statements. The accounting principles used in the preparation of the accompanying financial statements differ materially from IFRS. Accordingly, the accompanying financial statements are not intended to present the Bank’s financial position and results of its operations in accordance with accounting principles generally accepted in such countries of users of the financial statements and IFRS.
DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş. Member of DELOITTE TOUCHE TOHMATSU LIMITED
Hüseyin GÜRER Partner İstanbul, February 23, 2012
095 Unconsolidated Financial Statements and Accompanying Notes
THE UNCONSOLIDATED FINANCIAL REPORT OF ASYA KATILIM BANKASI A.Ş. FOR THE YEAR ENDED DECEMBER 31, 2011
Address : Saray Mahallesi Dr. Adnan Büyükdeniz Caddesi No:10 34768 Ümraniye/İSTANBUL Phone and Fax : 0 216 633 50 00 / 0 216 633 69 89 Website : www.bankasya.com.tr E-Mail : [email protected]
The year end unconsolidated financial report designed by the Banking Regulation and Supervision Agency in line with Communiqué on Financial Statements to be Publicly Announced and the Related Policies and Disclosures consists of the sections listed below:
• GENERAL INFORMATION ABOUT THE BANK • UNCONSOLIDATED FINANCIAL STATEMENTS OF THE BANK • EXPLANATIONS ON THE CORRESPONDING ACCOUNTING POLICIES APPLIED IN THE RELATED PERIOD • INFORMATION ON FINANCIAL STRUCTURE OF THE BANK • EXPLANATORY DISCLOSURES AND FOOTNOTES ON UNCONSOLIDATED FINANCIAL STATEMENTS • OTHER EXPLANATIONS • INDEPENDENT AUDITORS’ REPORT
The unconsolidated financial statements and the explanatory footnotes and disclosures, unless otherwise indicated, are prepared in Thousands of Turkish Lira, in accordance with the Communiqué on Banks’ Accounting Practice and Maintaining Documents, Turkish Accounting Standards, Turkish Financial Reporting Standards, related communiqués and the Banks’ records, have been independently audited and presented as attached.
Behçet AKYAR Abdullah ÇELİK Ahmet BEYAZ Kamil YILMAZ Chairman of the Board Member of the Board of Assistant General Manager Manager in Charge of of Directors Directors and General Responsible of Financial Financial Reporting Manager Reporting
Hülagü ÖZCAN İsmail Erol İŞBİLEN Member of the Board of Member of the Board of Directors and Member of the Directors and Member of the Audit Committee Audit Committee
Responsible personnel for the questions that can be raised on the financial statements: Name-Surname/Title: Merve Yasemin GÜNEŞ / Assistant Manager in Charge of Budgeting and Financial Controlling
Telephone Number : 0 216 633 54 82 Fax Number : 0 216 633 69 89
096 Bank Asya 2011 Annual Report
SECTION ONE: GENERAL INFORMATION I. History of the Bank Including Its Incorporation Date, Initial Status and Amendments to the Initial Status 098 II. Shareholder Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management and Internal Audit of the Bank, Changes in Shareholder Structure During the Current Period, if any and Information on the Bank’s Risk Group 098 III. Explanations Regarding the Shares of the Bank Owned by and Areas of Responsibility of the Chairman and the Members of Board of Directors, Audit Committee Members, Chief Executive Officer, Executive Vice Presidents 098 IV. Individuals and Institutions That Have Qualified Shares in the Bank 099 V. Summary Information on the Bank’s Services and Activity Areas 099
SECTION TWO: THE UNCONSOLIDATED FINANCIAL STATEMENTS I. Balance Sheet 100-101 II. Statement of Off-Balance Sheet Contingencies and Commitments 102 III. Statement of Income 103 IV. Statement of Profit and Loss Accounted for under Equity 104 V. Statement of Changes in Shareholders’ Equity 105 VI. Statement of Cash Flows 106 VII. Statement of Profit Distribution 107
SECTION THREE: ACCOUNTING PRINCIPLES I. Explanations on Basis of Presentation 108 II. Explanations on Strategy for Use of Financial Instruments and Foreign Currency Transactions 108 III. Explanations on Forward and Option Contracts and Derivative Instruments 108 IV. Explanations on Profit Share Income and Expenses 108 V. Explanations on Fees and Commission Income and Expenses 109 VI. Explanations on Financial Assets 109 VII. Explanations on Impairment of Financial Assets 110 VIII. Explanations on Offsetting Financial Assets and Liabilities 110 IX. Explanations on Sales and Repurchase Agreements and Lending of Securities 111 X. Explanations on Assets Held for Sale, Discontinued Operations and Liabilities Related to Those Assets 111 XI. Explanations on Goodwill and Other Intangible Assets 111 XII. Explanations on Tangible Assets 112 XIII. Explanations on Leasing Transactions 112 XIV. Explanations on Provisions and Contingent Liabilities 112 XV. Explanations on Liabilities for Employee Benefits 112 XVI. Explanations on Taxation 113 XVII. Additional Disclosures on Borrowing 113 XVIII. Explanations on Issuance of Share Certificates 113 XIX. Explanations on Avalized Drafts and Acceptances 113 XX. Explanations on Government Incentives 114 XXI. Explanations on Segment Reporting 114 XXII. Explanations on Other Matters 114
SECTION FOUR: INFORMATION ON FINANCIAL STRUCTURE I. Explanations on Capital Adequacy Standard Ratio 115 II. Explanations on Credit Risk 117 III. Explanations on Market Risk 121 IV. Explanations on Operational Risk 122 V. Explanations on Currency Risk 122 VI. Explanations on Interest Rate Risk 124 VII. Explanations on Liquidity Risk 124 VIII. Explanations on Presentation of Financial Assets and Liabilities at Fair Value 127 IX. Explanations on Transactions Carried out on Behalf of Other Parties and Fiduciary Assets 128
SECTION FIVE: EXPLANATIONS AND DISCLOSURES ON THE UNCONSOLIDATED FINANCIAL STATEMENTS I. Explanations and Disclosures Related to the Assets 129 II. Explanations and Disclosures Related to the Liabilities 145 III. Explanations and Disclosures Related to the Off-Balance Sheet Contingencies and Commitments 152 IV. Explanations and Disclosures Related to the Income Statement 157 V. Explanations and Disclosures Related to the Statements of Changes in Shareholders’ Equity 162 VI. Explanations and Disclosures Related to the Statement of Cash Flows 163 VII. Explanations on the Risk Group of the Bank 164 VIII. Explanations on the Bank’s Domestic, Foreign, Off-shore Branches or Investments in Associates and Foreign Representative Offices 165
SECTION SIX: OTHER EXPLANATIONS I. Other Explanations on the Operations of the Bank 165
SECTION SEVEN: INDEPENDENT AUDITORS’ REPORT I. Explanations on the Independent Auditor’s Report 165 II. Other Footnotes and Explanations Prepared by the Independent Auditors 165
097 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SECTION ONE: GENERAL INFORMATION
I. History of the Bank Including Its Incorporation Date, Initial Legal Status and Amendments to the Legal Status Incorporation of Asya Finans Kurumu A.Ş. is permitted with the decision of the Council of Ministers No: 96/8041 on April 11, 1996 as published in the Official Gazette dated April 25, 1996. The Bank was registered on September 20, 1996 and “the Articles of Association” was published in the Trade Registry Gazette on September 25, 1996. The Decision regarding the change in the title of the Bank was settled in the Extraordinary General Board of Directors’ meeting dated December 22, 2005 and the title was changed from Asya Finans Kurumu A.Ş. into Asya Katılım Bankası A.Ş. (“the Bank”) and it was published in the Trade Registry Gazette on December 26, 2005.
II. Shareholder Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management and Internal Audit of the Bank, Changes in Shareholder Structure During the Current Period, if any and Information on the Bank’s Risk Group The Bank has no shareholders having more than 10% shareholding direct or indirect, joint or individual control over the management of the Bank. The Bank is not included in any group.
III. Explanations Regarding the Shares of the Bank Owned by and Areas of Responsibility of the Chairman and the Members of Board of Directors, Audit Committee Members, Chief Executive Officer, Executive Vice Presidents Ownership Title Name Area of Responsibility Percentage % Chairman of the Board of Behçet AKYAR Chairman of the Board of Directors 0,0003 Directors Member of the Board of Salih SARIGÜL (*) Vice Chairman of the Board of Directors 0,2056 Directors Ahmet ÇELİK (*) Member of the Board of Directors 0,4800 Tacettin NEGİŞ (**) (***) Member of the Board of Directors - Member of the Board of Directors and the Audit İsmail Erol İŞBİLEN (***) - Committees Member of the Board of Directors and the Audit Hülagü ÖZCAN (***) - Committees General Manager Abdullah ÇELİK Member of the Board and General Manager - Corporate/Commercial Loans, Small Banking, Top Assistant General Management Office Headquarters, Business and - Managers Product development Coordination (****) Ali TUĞLU Information Technologies - Ali Fuat TAŞKESENLİOĞLU (*****) Corporate Credit Allocation II, - Credit and Risk Monitoring, Construction and Real Erdal ERDEM (*****) Estate Fahrettin SOYLU Banking Operations - Retail Sales Management, Retail Product Management, Card Payment Systems Marketing Ercüment GÜLER - Management, Administrative Affairs, Alternative Distribution Channels, Resource Development Budgeting & Reporting, Accounting & Bank Affiliates, Ahmet BEYAZ - Purchasing, Corporate Communications Zafer ERTAN Law, Credit and Risk Monitoring - Corporate/Consumer Credit Allocation I, Project Ahmet AKAR - Financing Treasury, Financial Institutions, Investor Relations, Feyzullah EĞRİBOYUN 0,0004 Human Resources and Education Auditors Ali AKBULUT Auditor 0,0002 Atıf BİLGİN Auditor 0,2411 İrfan HACIOSMANOĞLU Auditor 0,7093
(*) Bank Asya's Board members Mr. Salih SARIGÜL and Mr. Ahmet ÇELİK have announced their resignations, effective on January 26, 2012 Mr. Ali CELIK and Mr. Faruk ILK were appointed as the board members to fill their vacancies. (**) Bank Asya's Board member Mr. Tacettin NEGİŞ has announced his resignation, effective on February 2, 2012. Mr. Mustafa Talat KATIRCIOĞLU was appointed as the board members to fill his vacancy. (***) Pay rate is not presented due to being below 0,001%. (****) Related departments operate under control of the Headquarter. (*****) Bank Asya's Executive Vice Presidents Mr. Ali Fuat TAŞKESENLİOĞLU and Mr. Erdal ERDEM have resigned as of January 6, 2012.
098 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
IV. Individuals and Institutions That Have Qualified Shares in the Bank The Bank’s capital, amounting to TRY 900.000.000, consists of qualified shares, amounting to TRY 360.000.000 and the holders of the A Group type shares are considered as qualified. The qualified shareholders are listed below:
Name / Commercial Name: Share Amount Share Amount Paid Shares Unpaid Shares ORTADOĞU TEKSTİL TİC. SAN. A.Ş. 39.572 10,99 39.572 - FORUM İNŞAAT DEKORASYON TURİZM SAN. VE TİC. A.Ş. 34.668 9,63 34.668 - ABDULKADİR KONUKOĞLU 20.088 5,58 20.088 - BJ TEKSTİL TİCARET VE SANAYİ A.Ş. 18.000 5,00 18.000 - BİRİM BİRLEŞİK İNŞAATÇILIK MÜMESSİLLİK SAN. VE TİC. A.Ş. 17.783 4,94 17.783 - SERRA TURİZM LTD. ŞTİ. 15.000 4,17 15.000 - OSMAN CAN PEHLİVAN 14.400 4,00 14.400 - NEGİŞ GİYİM İMALAT VE İHRACAT A.Ş. 13.142 3,65 13.142 - HASAN SAYIN 12.723 3,53 12.723 - İBRAHİM SAYIN 12.679 3,52 12.679 - OTHER 161.945 44,99 161.945 - Total 360.000 100,00 360.000 -
V. Summary Information on the Bank’s Services and Activity Areas The Bank operates in accordance with the principles of interest-free banking as a participation bank by collecting funds through current accounts and profit sharing accounts, and lending such funds through production support, finance lease and profit/loss sharing partnership and shared investments. The Bank has two ways of collecting funds; current accounts and profit sharing accounts. The Bank classifies current accounts and profit sharing accounts in accordance with their maturities in its accounting system. Profit sharing accounts are classified into five different maturity groups; up to one month, up to three months (three months included), up to six months (six months included), up to one year (one year included) and one year and more than one year (one month, three months, six months and one year profit share payment). The Bank could determine the participation rates on profit/loss sharing accounts with respect to the maturity group of TRY and foreign currency accounts, separately under the limitation that the participation rate on loss shall not be less than 50%, for different currency type, amount and maturity groups specifically. The Bank constitutes specific fund pools allocated to the individually predetermined projects for financing purposes. Profit sharing accounts, which are part of the funds collected for project financing purpose, are distinguished from others with respect to the terms, accounted separately from the others and no transfers can be made from these accounts to any other maturity groups. Specific fund pools are liquidated at the end of the financing period. The Bank has no specific fund pools as of December 31, 2011. In addition to ordinary banking activities, the Bank operates as an agency on behalf of Işık Sigorta A.Ş. and intervenes stock purchase-sell transactions on behalf of Bizim Menkul Değerler A.Ş. through its branches.
099 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
UNCONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD ASSETS Note Audited Audited (31/12/2011) (31/12/2010) TRY FC Total TRY FC Total I. CASH AND BALANCES WITH THE CENTRAL BANK (1) 527.427 1.152.225 1.679.652 1.357.173 727.792 2.084.965 II. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Net) (2) - 1.250 1.250 - 2.581 2.581 2.1 Financial assets held for trading - 1.250 1.250 - 2.581 2.581 2.1.1 Public sector debt securities ------2.1.2 Share certificates ------2.1.3 Derivative financial assets held for trading - 1.250 1.250 - 2.581 2.581 2.1.4 Other marketable securities ------2.2 Financial assets at fair value through profit or loss ------2.2.1 Public sector debt securities ------2.2.2 Share certificates ------2.2.3 Loans ------2.2.4 Other marketable securities ------III. BANKS (3) 15.882 343.483 359.365 36.237 150.375 186.612 IV. MONEY MARKET PLACEMENTS ------V. FINANCIAL ASSETS AVAILABLE FOR SALE (Net) (4) 779.637 - 779.637 394.577 - 394.577 5.1 Share certificates 93 - 93 93 - 93 5.2 Public sector debt securities 779.544 - 779.544 394.484 - 394.484 5.3 Other marketable securities ------VI. LOANS AND RECEIVABLES (5) 11.588.089 1.565.682 13.153.771 9.967.521 987.275 10.954.796 6.1 Loans and receivables 11.278.387 1.565.242 12.843.629 9.824.377 986.884 10.811.261 6.1.1 Loans to Risk Group of the Bank 304.173 6.283 310.456 248.182 1.707 249.889 6.1.2 Public sector debt securities ------6.1.3 Other 10.974.214 1.558.959 12.533.173 9.576.195 985.177 10.561.372 6.2 Non-performing loans 614.033 1.697 615.730 445.673 1.478 447.151 6.3 Specific provisions (-) (304.331) (1.257) (305.588) (302.529) (1.087) (303.616) VII. HELD TO MATURITY INVESTMENTS (Net) (6) 77.053 - 77.053 77.032 - 77.032 VIII. INVESTMENTS IN ASSOCIATES (Net) (7) 96.873 - 96.873 86.606 - 86.606 8.1 Accounted for under equity method ------8.2 Unconsolidated associates 96.873 - 96.873 86.606 - 86.606 8.2.1 Financial investments 38.525 - 38.525 32.625 - 32.625 8.2.2 Non-financial investments 58.348 - 58.348 53.981 - 53.981 IX. INVESTMENTS IN SUBSIDIARIES (Net) (8) 154.761 - 154.761 144.963 - 144.963 9.1 Unconsolidated financial subsidiaries 97.809 - 97.809 88.011 - 88.011 9.2 Unconsolidated non-financial subsidiaries 56.952 - 56.952 56.952 - 56.952 X. ENTITIES UNDER COMMON CONTROL (JOINT VENT.) (Net) (9) ------10.1 Consolidated under equity method ------10.2 Unconsolidated ------10.2.1 Financial subsidiaries ------10.2.2 Non-financial subsidiaries ------XI. FINANCE LEASE RECEIVABLES (10) 277.570 20.181 297.751 81.966 23.505 105.471 11.1 Finance lease receivables 370.569 21.860 392.429 95.514 26.200 121.714 11.2 Operating lease receivables ------11.3 Other ------11.4 Unearned income ( - ) (92.999) (1.679) (94.678) (13.548) (2.695) (16.243) XII. DERIVATIVE FINANCIAL ASSETS FOR HEDGING PURPOSES (11) ------12.1 Fair value hedge ------12.2 Cash flow hedge ------12.3 Hedge of net investment risks in foreign operations ------XIII. TANGIBLE ASSETS (Net) (12) 453.692 - 453.692 353.452 - 353.452 XIV. INTANGIBLE ASSETS (Net) (13) 11.012 - 11.012 10.419 - 10.419 14.1 Goodwill ------14.2 Other 11.012 - 11.012 10.419 - 10.419 XV. INVESTMENT PROPERTIES (Net) (14) ------XVI. TAX ASSET (15) 19.398 - 19.398 9.811 - 9.811 16.1 Current tax asset ------16.2 Deferred tax asset 19.398 - 19.398 9.811 - 9.811
XVII. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net) (16) 8.724 - 8.724 6.509 - 6.509 17.1 Held for sale 8.724 - 8.724 6.509 - 6.509 17.2 Discontinued Operations ------XVIII. OTHER ASSETS (17) 96.021 1.139 97.160 94.814 811 95.625
TOTAL ASSETS 14.106.139 3.083.960 17.190.099 12.621.080 1.892.339 14.513.419
The accompanying notes are an integral part of these combined financial statements
100 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
UNCONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD LIABILITIES AND EQUITY Note Audited Audited (31/12/2011) (31/12/2010) TRY FC Total TRY FC Total I. FUND COLLECTED (1) 7.813.463 4.583.580 12.397.043 7.662.288 3.504.294 11.166.582 1.1 Fund from Risk Group of the Bank 177.714 63.720 241.434 131.304 82.142 213.446 1.2 Other 7.635.749 4.519.860 12.155.609 7.530.984 3.422.152 10.953.136 II. DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING (2) - 11.715 11.715 - 5.397 5.397 III. FUNDS BORROWED (3) - 1.457.830 1.457.830 - 622.237 622.237 IV. MONEY MARKET BALANCES 279.207 - 279.207 - - - V. MARKETABLE SECURITIES ISSUED (Net) ------VI. SUNDRY CREDITORS 376.682 2.636 379.318 278.187 2.656 280.843 VII. OTHER LIABILITIES (4) 221.158 62.681 283.839 256.348 14.813 271.161 VIII. FINANCE LEASE PAYABLES (5) ------8.1 Finance lease payables ------8.2 Operating lease payables ------8.3 Other ------8.4 Deferred finance lease expenses (-) ------IX. DERIVATIVE FINANCIAL LIABILITIES FOR HEDGING PURPOSES (6) ------9.1 Fair value hedge ------9.2 Cash flow hedge ------9.3 Hedge of net investment in foreign operations ------X. PROVISIONS (7) 165.608 26.630 192.238 159.391 17.979 177.370 10.1 General loan loss provisions 110.319 20.747 131.066 100.356 16.848 117.204 10.2 Restructuring provisions ------10.3 Reserve for employee benefits 28.854 - 28.854 23.058 - 23.058 10.4 Insurance technical reserves (Net) ------10.5 Other provisions 26.435 5.883 32.318 35.977 1.131 37.108 XI. TAX LIABILITY (8) 51.482 1 51.483 48.161 1 48.162 11.1 Current tax liability 51.482 1 51.483 48.161 1 48.162 11.2 Deferred tax liability ------PAYABLES RELATED TO ASSETS HELD FOR SALE ND XII. (9) ------DISCONTINUED OPERATIONS (Net) 12.1 Held for sale ------12.2 Discontinued operations ------XIII. SUBORDINATED LOANS (10) ------XIV. SHAREHOLDERS' EQUITY (11) 2.137.426 - 2.137.426 1.941.667 - 1.941.667 14.1 Paid-in capital 900.000 - 900.000 900.000 - 900.000 14.2 Supplementary Capital (6.017) - (6.017) 14.314 - 14.314 14.2.1 Share premium 3.307 - 3.307 3.307 - 3.307 14.2.2 Share cancellation profits ------14.2.3 Marketable securities valuation differences (13.599) - (13.599) 6.732 - 6.732 14.2.4 Tangible assets revaluation differences 4.275 - 4.275 4.275 - 4.275 14.2.5 Intangible assets revaluation differences ------14.2.6 Investment property revaluation reserve ------Bonus shares obtained from associates, subsidiaries and jointly 14.2.7 ------controlled entities (Joint Vent.) 14.2.8 Hedging funds (Effective portion) ------Accumulated valuation differences from assets held for sale and from 14.2.9 ------discontinued operations 14.2.10 Other capital reserves ------14.3 Profit reserves 1.027.353 - 1.027.353 767.391 - 767.391 14.3.1 Legal reserves 65.948 - 65.948 52.950 - 52.950 14.3.2 Status reserves ------14.3.3 Extraordinary reserves 961.405 - 961.405 714.441 - 714.441 14.3.4 Other profit reserves ------14.4 Profit or loss 216.090 - 216.090 259.962 - 259.962 14.4.1 Prior year income / (losses) ------14.4.2 Current year income / (losses) 216.090 - 216.090 259.962 - 259.962 14.5 Minority shares ------
TOTAL LIABILITIES AND EQUITY 11.045.026 6.145.073 17.190.099 10.346.042 4.167.377 14.513.419
The accompanying notes are an integral part of these combined financial statements
101 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
UNCONSOLIDATED STATEMENT OF OFF-BALANCE SHEET CONTINGENGIES AND COMMITMENTS
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Note Audited Audited (31/12/2011) (31/12/2010) TRY FC Total TRY FC Total OFF BALANCE SHEET CONTINGENCIES AND COMMITMENTS A. 7.698.020 7.183.246 14.881.266 7.181.426 5.737.843 12.919.269 (I+II+III) I. GUARANTEES (1), (2) 4.047.507 5.301.252 9.348.759 4.226.595 5.000.288 9.226.883 1.1. Letters of guarantees 3.996.113 3.560.462 7.556.575 4.195.799 3.742.856 7.938.655 1.1.1. Guarantees subject to State Tender Law ------1.1.2. Guarantees given for foreign trade operations ------1.1.3. Other letters of guarantee 3.996.113 3.560.462 7.556.575 4.195.799 3.742.856 7.938.655 1.2. Bank loans 27.386 296.584 323.970 23.000 131.318 154.318 1.2.1. Import letter of acceptance 27.386 296.584 323.970 23.000 131.318 154.318 1.2.2. Other bank acceptances ------1.3. Letters of credit 2.898 1.331.621 1.334.519 642 996.720 997.362 1.3.1. Documentary letters of credit ------1.3.2. Other letters of credit 2.898 1.331.621 1.334.519 642 996.720 997.362 1.4. Prefinancing given as guarantee ------1.5. Endorsements ------1.5.1. Endorsements to the Central Bank of Turkey ------1.5.2. Other endorsements ------1.6. Other guarantees 21.110 112.585 133.695 7.154 129.394 136.548 1.7. Other collaterals ------II. COMMITMENTS (1) 3.628.894 587.140 4.216.034 2.686.588 79.243 2.765.831 2.1. Irrevocable commitments 3.628.894 587.140 4.216.034 2.686.588 79.243 2.765.831 2.1.1. Forward asset purchase commitments 498.695 587.140 1.085.835 36.324 79.243 115.567 2.1.2. Share capital commitment to associates and subsidiaries 10.798 - 10.798 2.000 - 2.000 2.1.3. Loan granting commitments 353.633 - 353.633 341.648 - 341.648 2.1.4. Securities underwriting commitments ------2.1.5. Commitments for reserve deposit requirements ------2.1.6. Payment commitment for checks 650.723 - 650.723 580.319 - 580.319 2.1.7. Tax and fund liabilities from export commitments 1.883 - 1.883 1.880 - 1.880 2.1.8. Commitments for credit card expenditure limits 2.066.016 - 2.066.016 1.661.296 - 1.661.296 Commitments for promotions related with credit cards and banking 2.1.9. 7.236 - 7.236 7.257 - 7.257 activities 2.1.10. Receivables from short sale commitments ------2.1.11. Payables for short sale commitments ------2.1.12. Other irrevocable commitments 39.910 - 39.910 55.864 - 55.864 2.2. Revocable commitments ------2.2.1. Revocable loan granting commitments ------2.2.2. Other revocable commitments ------III. DERIVATIVE FINANCIAL INSTRUMENTS (4) 21.619 1.294.854 1.316.473 268.243 658.312 926.555 3.1. Derivative financial instruments for hedging purposes ------3.1.1. Fair value hedge ------3.1.2. Cash flow hedge ------3.1.3. Hedge of net investment in foreign operations ------3.2. Held for trading transactions 21.619 1.294.854 1.316.473 268.243 658.312 926.555 3.2.1. Forward foreign currency buy/sell transactions ------3.2.1.1. Forward foreign currency transactions-buy ------3.2.1.2. Forward foreign currency transactions-sell ------3.2.2. Other Forward buy/sell transactions 21.619 1.294.854 1.316.473 268.243 658.312 926.555 3.3. Other ------B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) 144.252.279 103.667.485 247.919.764 114.534.965 74.648.884 189.183.849 IV. ITEMS HELD IN CUSTODY 996.242 821.158 1.817.400 737.083 373.825 1.110.908 4.1. Assets under management ------4.2. Investment securities held in custody 2.885 - 2.885 2.885 - 2.885 4.3. Checks received for collection 736.005 316.160 1.052.165 537.081 193.630 730.711 4.4. Commercial notes received for collection 257.343 20.756 278.099 197.111 15.177 212.288 4.5. Other assets received for collection - 126.829 126.829 - 40.842 40.842 4.6. Assets received for public offering ------4.7. Other items under custody 5 - 5 4 - 4 4.8. Custodians 4 357.413 357.417 2 124.176 124.178 V. PLEDGED ITEMS 143.256.037 102.846.327 246.102.364 113.797.882 74.275.059 188.072.941 5.1. Marketable securities 820.957 370.522 1.191.479 558.289 300.630 858.919 5.2. Guarantee notes 49.893.921 38.782.884 88.676.805 38.978.316 27.921.735 66.900.051 5.3. Commodity 2.643.502 759.906 3.403.408 2.124.763 553.137 2.677.900 5.4. Warranty ------5.5. Properties 18.800.856 2.744.840 21.545.696 15.363.750 1.260.824 16.624.574 5.6. Other pledged items 71.096.801 60.188.175 131.284.976 56.772.764 44.238.733 101.011.497 5.7. Pledged items-depository ------VI. ACCEPTED AVALIZED DRAFTS AND SURETYSHIPS ------
TOTAL OFF BALANCE SHEET ACCOUNTS (A+B) 151.950.299 110.850.731 262.801.030 121.716.391 80.386.727 202.103.118
The accompanying notes are an integral part of these combined financial statements
102 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
UNCONSOLIDATED STATEMENT OF INCOME
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD STATEMENT OF INCOME Note Audited Audited (01/01/2011-31/12/2011) (01/01/2010-31/12/2010)
I. PROFIT SHARE INCOME (1) 1.278.154 1.206.930 1.1 Profit share on loans 1.201.460 1.126.940 1.2 Profit share from reserve deposits - 13.364 1.3 Profit share from banks 1.892 22.369 1.4 Profit share from money market placements - - 1.5 Profit share from marketable securities portfolio 58.116 30.884 1.5.1 Held-for-trading financial assets - - 1.5.2 Financial assets at fair value through profit and loss - - 1.5.3 Available-for-sale financial assets 49.234 21.050 1.5.4 Investment-held for maturity 8.882 9.834 1.6 Finance lease income 16.686 13.373 1.7 Other profit share income - - II. PROFIT SHARE EXPENSE (2) (646.930) (613.392) 2.1 Expense on profit sharing accounts (593.829) (596.677) 2.2 Profit share expense on funds borrowed (38.562) (16.538) 2.3 Profit share expense on money market borrowings (14.340) - 2.4 Expense on securities issued - - 2.5 Other profit share expense (199) (177) III. NET PROFIT SHARE INCOME (I - II) 631.224 593.538 IV. NET FEES AND COMMISSIONS INCOME/EXPENSE 259.808 249.378 4.1 Fees and commisions received 319.881 300.661 4.1.1 Non-cash loans 133.643 151.840 4.1.2 Other (12) 186.238 148.821 4.2 Fees and commisions paid (60.073) (51.283) 4.2.1 Non-cash loans (12) (10) 4.2.2 Other (12) (60.061) (51.273) V. DIVIDEND INCOME (3) - - VI. NET TRADING INCOME (4) 39.120 44.963 6.1 Securities trading gains / (losses) - - 6.2 Gains /(losses) from derivative financial instruments 64.210 30.508 6.3 Foreign exchange gains / (losses) (25.090) 14.455 VII. OTHER OPERATING INCOME (5) 130.545 134.193 VIII. NET OPERATING INCOME (III+IV+V+VI+VII) 1.060.697 1.022.072 IX. PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-) (6) (228.198) (167.487) X. OTHER OPERATING EXPENSES (-) (7) (563.367) (530.287) XI. NET OPERATING PROFIT/(LOSS) (VIII-IX-X) 269.132 324.298 XII. AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER - - XIII. GAIN/(LOSS) ON EQUITY METHOD - - XIV. GAIN/(LOSS) ON NET MONETARY POSITION - - XV. PROFIT/(LOSS) FROM CONTINUED OPERATIONS BEFORE TAXES (XI+…+XIV) (8) 269.132 324.298 XVI. TAX PROVISION FOR CONTINUED OPERATIONS (±) (9) (53.042) (64.336) 16.1 Current income tax (charge)/benefit (57.546) (70.346) 16.2 Deferred tax (charge)/benefit 4.504 6.010 XVII. NET PROFIT/(LOSS) FROM CONTINUED OPERATIONS (XV±XVI) (10) 216.090 259.962 XVIII. INCOME ON DISCONTINUED OPERATIONS - - 18.1 Income on assets held for sale - - 18.2 Income on sale of associates, subsidiaries and jointly controlled entities (Joint Vent.) - - 18.3 Income on other discontinued operations - - XIX. LOSS FROM DISCONTINUED OPERATIONS (-) - - 19.1 Loss from assets held for sale - - 19.2 Loss on sale of associates, subsidiaries and jointly controlled entities (Joint vent.) - - 19.3 Loss from other discontinued operations - - XX. PROFIT / (LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII-XIX) - - XXI. TAX PROVISION FOR DISCONTINUED OPERATIONS (±) - - 21.1 Current income tax charge - - 21.2 Deferred tax charge/ (benefit) - - XXII. NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI) - - XXIII. NET PROFIT/LOSS (XVII+XXII) (11) 216.090 259.962 23.1 Group’s profit/loss 216.090 259.962 23.2 Minority shares - - Earnings per share 0,24 0,29
The accompanying notes are an integral part of these combined financial statements
103 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
STATEMENT OF PROFIT AND LOSS ITEMS ACCOUNTED UNDER EQUITY
THOUSAND TURKISH LIRA
CURRENT PERIOD PRIOR PERIOD STATEMENT OF PROFIT AND LOSS ITEMS ACCOUNTED UNDER EQUITY Audited Audited (01/01/2011-31/12/2011) (01/01/2010-31/12/2010)
I. Additions to marketable securities revaluation differences from financial assets available for sale (25.414) 4.764
II. Tangible assets revaluation differences - -
III. Intangible assets revaluation differences - -
IV. Foreign exchange differences for foreign currency transactions - -
Profit/Loss from derivative financial instruments for cash flow hedge purposes (Effective portion of fair value V. - - differences)
Profit/Loss from derivative financial instruments for hedge of net investment in foreign operations (Effective VI. - - portion of fair value differences)
VII. The effect of corrections of errors and changes in accounting policies - -
VIII. Other profit loss items accounted for under equity due to TAS - -
IX. Deferred tax of valuation differences 5.083 (953)
X. Total Net Profit/Loss accounted for under equity (I+II+…+IX) (20.331) 3.811
XI. Profit/Loss - -
11.1 Change in fair value of marketable securities (Transfer to Profit/Loss) - -
11.2 Reclassification and transfer of derivatives accounted for cash flow hedge purposes to Income Statement - -
11.3 Transfer of hedge of net investments in foreign operations to Income Statement - -
11.4 Other - -
XII. Total Profit/Loss accounted for the period (X±XI) (20.331) 3.811
The accompanying notes are an integral part of these combined financial statements
104 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
UNCONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER’S EQUITY ------3.811 (30.000) (30.000) (20.331) 259.962 216.090 Total Equity Total 1.707.894 2,137,426 1.707.894 1.941.667 1.941.667 ------Non- Interest controlling controlling ------3.811 Interest Excluding (30.000) (30.000) (20.331) 259.962 216.090 Total Equity Total 1.707.894 2,137,426 1.707.894 1.941.667 1.941.667 Non-controlling Non-controlling ------Op. Assets Held for Valuation Diff. from from Diff. Valuation Sale and from Disc. from and Sale ------Funds Hedging ------Subsidiaries Bonus Shares Bonus Shares Obtained from Obtained from ------4.275 4,275 4.275 4.275 4.275 Differences Revaulation Tangible and Tangible Intangible Assets ------2.921 2.921 3.811 6.732 6.732 Reserve Securities (13,599) (20.331) Marketable Revaluation ------(30.000) 301.281 301.281 259.962 (301.281) (271.281) (259.962) (259.962) / (Expense) Net Income Prior Period ------Current Current Income / (Expense) 216.090 259.962 259.962 216.090 Period Net ------Other Reserve ------Reserve 256.217 714.441 458.224 961,405 458.224 256.217 714.441 246.964 246.964 Extraordinary Extraordinary ------Statutory Reserves
------Legal 37.886 37.886 15.064 15.064 52.950 52.950 12.998 12.998 65,948 Reserves
------Share Share Profits Certificate Cancellation ------Share Share 3.307 3.307 3.307 3.307 3,307 Premium
------an integral part of these combined financial statements The accompanying notes are Inflation Adjustment to Paid-in Capital ------Capital Paid-in 900.000 900.000 900.000 900.000 900,000 Note STATEMENT OF CHANGES SHAREHOLDER'S EQUITY STATEMENT PRIOR PERIOD Audited (01/01-31/12/2010) Prior Period Balance - 31.12.2009 Corrections according to TAS 8 to TAS according Corrections Capital increase Tangible assets revaluation differences assets revaluation Tangible The effect of corrections of errrors of corrections The effect Cash Intangible assets revaluation differences Intangible assets revaluation The effects of changes in accounting policy The effects Internal sources Bonus shares obtained from associates, subsidiaries and jointly obtained from Bonus shares entities (Joint vent.) controlled New Balance (I+II) Share premium Share Foreign exchange differences Foreign Changes in period cancellation profits Share The disposal of assets Increase/decrease related to merger related Increase/decrease Inflation adjustment to paid-in capital of assets The reclassification Marketable securities valuation differences Other The effect of change in associate’s equity of change in associate’s The effect Hedging funds (Effective Portion) Hedging funds (Effective Period net income/(loss) Capital increase Cash-flow hedge distribution Profit Cash Hedge of net investment in foreign operations Hedge of net investment in foreign Dividends distributed Internal sources Tangible assets revaluation differences assets revaluation Tangible Transfers to reserves Transfers Share premium Share Intangible assets revaluation differences Intangible assets revaluation Other cancellation profits Share Bonus shares obtained from associates, subsidiaries and jointly obtained from Bonus shares entities (Joint vent.) controlled Closing Balance (I+II+III+-…...+XVI+XVII+XVIII) Inflation adjustment to paid-in capital Foreign exchange differences Foreign CURRENT PERIOD Audited (01/01-31/12/2011) Prior Period Balance - 31.12.2010 Other The disposal of assets Changes in period Period net income/(loss) of assets The reclassification Increase/decrease related to merger related Increase/decrease distribution Profit The effect of change in associate’s equity of change in associate’s The effect Marketable securities valuation differences Dividends distributed Hedging funds (Effective Portion) Hedging funds (Effective Transfers to reserves Transfers Cash-flow hedge Other Hedge of net investment in foreign operations Hedge of net investment in foreign Closing Balance (I+II+III+-…...+XVI+XVII+XVIII) I. II. XIV. V. 2.1 14.1 VI. 2.2. 14.2 VII. III. XV. VIII. XVI. IX. IV. XVII. X. V. XVIII. XI. VI. XIX. XII. 6.1 XX. 12.1 6.2 20.1 12.2 VII. 20.2 XIII. VIII. 20.3 XIV. IX. XV. X. I. XVI. XI. XVII. XII. II. XVIII. XIII. III. 18.1 IV. 18.2 4.1 18.3 4.2
105 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
UNCONSOLIDATED STATEMENT OF CASH FLOWS
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Note Audited Audited (01/01-31/12/2011) (01/01-31/12/2010) A. CASH FLOWS FROM BANKING OPERATIONS
1.1 Operating profit before changes in operating assets and liabilities 73.392 347.458
1.1.1 Profit share income received 1.193.742 1.126.572 1.1.2 Profit share expense paid (638.541) (612.566) 1.1.3 Dividend received - - 1.1.4 Fees and commissions received 331.526 300.661 1.1.5 Other income 90.226 102.519 1.1.6 Collections from previously written off loans 14.509 20.636 1.1.7 Payments to personnel and service suppliers (264.766) (242.029) 1.1.8 Taxes paid (81.339) (89.412) 1.1.9 Others (571.965) (258.923)
1.2 Changes in operating assets and liabilities 413.359 31.670
1.2.1 Net (increase) decrease in financial assets - - 1.2.2 Net (increase) decrease in financial assets at fair value through profit or loss - - 1.2.3 Net (increase) decrease in due from banks and other financial institutions 538.259 378.883 1.2.4 Net (increase) decrease in loans (2.191.597) (2.857.397) 1.2.5 Net (increase) decrease in other assets 12.386 (10.185) 1.2.6 Net increase (decrease) in bank deposits 101.005 10.926 1.2.7 Net increase (decrease) in other deposits 903.693 1.927.951 1.2.8 Net increase (decrease) in funds borrowed 672.030 417.118 1.2.9 Net increase (decrease) in due payables - - 1.2.10 Net increase (decrease) in other liabilities 377.583 164.374
I. Net cash provided from banking operations 486.751 379.128
B. CASH FLOWS FROM INVESTING ACTIVITIES
II. Net cash provided from investing activities (375.119) (315.800)
Cash paid for purchase of entities under common control, associates and subsidiaries 2.1 (I.7-I.8) (20.065) (46.696) (Joint Vent.) Cash obtained from sale of entities under common control, associates and subsidiaries 2.2 (I.7-I.8) - - (Joint Vent.) 2.3 Fixed assets purchases (I.12) (31.920) (47.537) 2.4 Fixed assets sales (I.12) 81.110 81.900 2.5 Cash paid for purchase of financial assets available for sale (400.000) (350.000) 2.6 Cash obtained from sale of financial assets available for sale - 50.000 2.7 Cash paid for purchase of investment securities - (50.000) 2.8 Cash obtained from sale of investment securities - 50.000 2.9 Other (I.13) (4.244) (3.467)
C. CASH FLOWS FROM FINANCING ACTIVITIES
III. Net cash provided from financing activities - (30.000)
3.1 Cash obtained from funds borrowed and securities issued - - 3.2 Cash used for repayment of funds borrowed and securities issued - - 3.3 Capital increase - - 3.4 Dividends paid - (30.000) 3.5 Payments for finance leases - - 3.6 Other - -
IV. Effect of change in foreign exchange rate on cash and cash equivalents 77.996 8.397
V. Net increase in cash and cash equivalents 189.628 41.725
VI. Cash and cash equivalents at the beginning of the year (1) 420.068 378.343
VII. Cash and cash equivalents at the end of the year (1) 609.696 420.068
The accompanying notes are an integral part of these combined financial statements
106 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
PROFIT DISTRIBUTION TABLE
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Audited Audited (01/01/2011-31/12/2011) (01/01/2010-31/12/2010) I. DISTRIBUTION OF CURRENT YEAR PROFIT (**)
1.1 CURRENT YEAR PROFIT 269.132 324.298 1.2 TAXES AND DUTIES PAYABLE (-) (53.042) (64.336) 1.2.1 Corporate Tax (Income Tax) (57.546) (70.346) 1.2.2 Income Withholding Tax - - 1.2.3 Other taxes and duties (*) 4.504 6.010
A. NET INCOME FOR THE YEAR (1.1-1.2) 216.090 259.962
1.3 PRIOR YEAR'S LOSSES (-) - - 1.4 FIRST LEGAL RESERVES (-) - 12.998 1.5 OTHER STATUTORY RESERVES (-) - -
B. NET INCOME AVAILABLE FOR DISTRIBUTION [(A-(1.3+1.4+1.5)] 216.090 246.964
1.6 FIRST DIVIDEND TO SHAREHOLDERS (-) - - 1.6.1 To Owners of Ordinary Shares - - 1.6.2 To Owners of Preferred Shares - - 1.6.3 To Owners of Preferred Shares (Preemptive Rights) - - 1.6.4 To Profit Sharing Bonds - - 1.6.5 To Owners of the profit and loss Sharing Certificates - - 1.7 DIVIDEND TO PERSONNEL (-) - - 1.8 DIVIDEND TO BOARD OF DIRECTORS (-) - - 1.9 SECOND DIVIDEND TO SHAREHOLDERS (-) - - 1.9.1 To Owners of Ordinary Shares - - 1.9.2 To Owners of Preferred Shares - - 1.9.3 To Owners of Preferred Shares (Preemptive Rights) - - 1.9.4 To Profit Sharing Bonds - - 1.9.5 To Owners of the profit /loss Sharing Certificates - - 1.10 SECOND LEGAL RESERVE (-) - - 1.11 STATUTORY RESERVES (-) - - 1.12 EXTRAORDINARY RESERVES - 246.964 1.13 OTHER RESERVES - - 1.14 SPECIAL FUNDS - -
II. DISTRIBUTION OF RESERVES
2.1 DISTRIBUTED RESERVES - - 2.2 SECOND LEGAL RESERVES (-) - - 2.3 DIVIDENDS TO SHAREHOLDERS (-) - - 2.3.1 To Owners of Ordinary Shares - - 2.3.2 To Owners of Preferred Shares - - 2.3.3 To Owners of Preferred Shares (Preemptive Rights) - - 2.3.4 To Profit Sharing Bonds - - 2.3.5 To Holders of the profit /loss Sharing Certificates - - 2.4 DIVIDENDS TO PERSONNEL (-) - - 2.5 DIVIDENDS TO BOARD OF DIRECTORS (-) - -
III. EARNINGS PER SHARE
3.1 TO OWNERS OF ORDINARY SHARES 0,24 0,29 3.2 TO OWNERS OF ORDINARY SHARES ( % ) 24 29 3.3 TO OWNERS OF PREFERRED STOCKS - - 3.4 TO OWNERS OF PREFERRED STOCKS ( % ) - -
IV. DIVIDEND PER SHARE
4.1 TO OWNERS OF ORDINARY SHARES - - 4.2 TO OWNERS OF ORDINARY SHARES ( % ) - - 4.3 TO OWNERS OF PREFERRED STOCKS - - 4.4 TO OWNERS OF PREFERRED STOCKS ( % ) - -
(*) Deferred tax benefit is presented in "other tax and duties" line. (**) Profit distribution is agreed on the General Assembly Meeting and as of the reporting date, the General Assembly meeting has not been held, yet.
The accompanying notes are an integral part of these combined financial statements
107 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SECTION THREE: ACCOUNTING PRINCIPLES
I. Explanations on Basis of Presentation
1. Presentation of Financial Statements The Bank prepares its financial statements and notes in accordance with the Communiqué on Banks’ Accounting Practice and Maintaining Documents, Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”), other communiqués, pronouncements and explanations about accounting and financial reporting issued by the Banking Regulation and Supervision Agency (“BRSA”), Turkish Commercial Code and the Tax Legislation. The prior period financial statements are presented in line with the principles of TAS No: 1 “Fundamentals of Preparing and Presenting Financial Statements” published in the Official Gazette on January 16, 2005 with No: 25702, and in accordance with TAS and TFRS and other principles, methods and explanations about accounting and financial reporting issued by the BRSA. Certain reclassifications have been made to the prior year financial statements to comply with the current year presentation. The accompanying financial statements are prepared in accordance with historical cost basis except for financial assets at fair value through profit or loss and financial assets available for sale that are presented on fair value basis.
2. Basis of Accounting The accompanying financial statements are based on the Bank’s legal records. The Bank has recorded the adjustments of inflation accounting to its legal records beginning from June 30, 2004 to December 31, 2004 in accordance with Act No: 5024 of the Tax Procedural Code. As of December 31, 2003, the financial statements are prepared in accordance with the legal books and historical cost principle except for the revaluation of fixed assets and includes adjustments and reclassifications, including restatement for the changes in the general purchasing power of the Turkish Lira in accordance with Turkish Accounting Standard for “Financial Reporting in Hyperinflationary Economies” (“TAS 29”) prior to December 31, 2004 for the purpose of fair presentation.
II. Explanations on Strategy for Use of Financial Instruments and Foreign Currency Transactions The Bank manages its financial instrument strategies depending on the financing sources. The sources mainly constitute of the current and profit sharing accounts. As of the balance sheet date, the Bank’s assets and equity structure are sufficient to cover its liabilities. The Bank allocates 20% of its profit sharing accounts to liquid instruments (December 31, 2010: 23%). The Bank does not carry a significant foreign currency position risk due to the existing floating exchange rate regime. The investment decisions are made by taking into consideration the maturity structure of the balance sheet items. The allocations of asset items are designated, and yield analysis are made based on this designation. In the statutory records of the Bank, the transactions recorded in foreign currencies (all other currencies except Turkish Lira) are translated into the Turkish Lira at the exchange rates prevailing at the transaction dates. Monetary asset and liabilities denominated in foreign currencies are translated into the Turkish Lira at the balance sheet date of the Bank. Foreign exchange gains or losses arising from the translation of monetary items and foreign currency denominated collections or disbursements are recognized in the income statement.
III. Explanations on Forward and Option Contracts and Derivative Instruments In determination of fair value of forward and swap transactions, forward rates discounted to the balance sheet date by prevailing are compared with the expected discounted rates at maturity calculated based on the prevailing profit shares as of the balance sheet date and arising foreign exchange differences are recognized in the income statement. Although some of the derivative transactions provide economic hedging in accordance with TAS 39 “Financial Instruments: Recognition and Measurement” since all necessary conditions for hedge accounting have not been met, the bank classifies these transactions as “held for trading” therefore changes in the fair value of derivative financial instruments are recognized in profit or loss as they arise.
IV. Explanations on Profit Share Income and Expenses Profit share income and expenses are recognized in the income statement on an accrual basis. Realized and unrealized profit share accruals of the non-performing loans are reversed and profit share income in connection with these loans is recorded as profit share income only when they are collected.
108 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
V. Explanations on Fees and Commission Income and Expenses Banking service revenues are recognized as income only when they are collected while only the current portion of the prepaid commission income obtained from loans is recorded as income based on the periodicity principle. Fees and commissions for funds borrowed paid to other financial institutions, as part of the transaction costs, are recorded as prepaid expenses and are recognized as expense on the relevant periods.
VI. Explanations on Financial Assets Financial instruments comprise of financial assets, financial liabilities and derivative instruments. Financial assets and financial liabilities are recognized on the Bank’s balance sheet when the Bank becomes a party to the contractual provisions of the instrument. Basically, financial assets form majority of the commercial activities and operations of the Bank. Financial instruments expose, change or reduce the liquidity and credit risks of the Bank’s financial statements. Fair value is the amount for which an asset could be exchanged or a liability settled, between knowledgeable willing parties in an arm length transaction. Fair value is best evidenced by a market price, being the amount obtainable from the sale or payable on the acquisition, of a financial instrument in an active market, if one exists. Estimated fair values of financial assets are determined by the Bank by using the market data and relevant valuation methods. However, interpretation of market data is necessary to determine fair value. Therefore, estimated fair values presented in this report may not be necessarily equivalent of the disposal values of such assets derived from current market conditions. Some carrying values of the financial instruments which are same with their cost values are assumed to be equal to their fair values because of their short term nature. The methods and assumptions used in determining the reasonable estimated values of all financial instruments are mentioned below:
Cash, Banks, and Other Financial Institutions: Cash and cash equivalents comprise of cash on hand, demand deposits, and highly liquid short-term investments not bearing risk of significant value change, and that are readily convertible to a known amount of cash. The book value of these financial assets approximate to their fair value.
Financial Assets at Fair Value through Profit or Loss: Marketable securities at fair value through profit or loss are classified in two categories; i) marketable securities classified as trading securities: acquired or incurred principally for the purpose of selling or repurchasing it in the near term in order to benefit from short-term profit opportunities; ii) marketable securities classified as marketable securities at fair value through profit or loss at initial recognition. The Bank uses the above-mentioned classification when permitted, or for the purposes of providing a more appropriate presentation. In this group, trading securities are initially recognized at cost and measured at fair value on the financial statements. Fair value of debt securities traded in an active market is determined based on the quoted prices or current market prices. The difference between initial cost and fair value of financial assets at fair value through profit or loss is reflected to profit share income or diminution in value of marketable securities accounts. Profit share income from financial assets at fair value through profit or loss is reflected in profit share income. As of December 31, 2011, the Bank has TRY 1.250 Thousand of derivative financial assets held for trading at fair value through profit or loss (December 31, 2010: TRY 2.581 Thousand).
Held to Maturity Investments: Held to maturity investments include securities with fixed or determinable payments and fixed maturity when there is an intention of holding till maturity and the relevant conditions for fulfillment of such intention, including the funding ability. This portfolio excludes loans and receivables. Subsequent to initial recognition, held to maturity investments are measured at amortized cost by using the effective interest rate less impairment losses, if any. The Bank has no financial assets acquired and classified as held to maturity investments that cannot be subject to such classification for two years because of the non-performance of tainting rules. The profit share income received from held to maturity investments is recorded as profit share income in the income statement. As of December 31, 2011, the Bank has TRY 77.053 Thousand of held to maturity investments (December 31, 2010: TRY 77.032 Thousand).
109 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Financial Assets Available for Sale: Financial assets available for sale are initially recognized at cost including the transaction costs. After initial recognition, bonds classified available for sale are measured at fair value and unrealized gains/losses originating from the difference between the amortized cost and the fair value are recorded in “Marketable Securities Value Increase Fund” under equity. At the disposal of available for sale financial assets, value increase/decrease recorded in “Marketable Securities Value Increase Fund” under equity is transferred to the income statement. Equity instruments that are classified as available for sale assets are recorded with their value after deduction of any impairment from original cost. As of December 31, 2011, the Bank has TRY 779.637 Thousand of available for sale financial assets (December 31, 2010: TRY 394.577 Thousand).
Loans and Receivables: Loans and receivables are recognized at amortized cost. Fees, transaction costs and other similar costs in connection with the guarantees of loans and receivables are not considered as part of the transaction cost and recognized as expense in the income statement. Loans are transferred to the relevant accounts in with their cash amounts and income accruals are calculated by using the internal rate of return method and the related income is recorded in the profit share income item. Foreign currency and foreign currency indexed loans are evaluated and evaluation differences are accounted under “Foreign Exchange Gains” and/or “Foreign Exchange Losses” in the income statement. The classification and provisioning of doubtful loans/receivables are appropriately accounted for in accordance with the prevailing regulations, and specific provisions allocated are recognized in the income statement for the period. Collections made from such loans are recognized under the “Non-performing loans” (including receivables from the doubtful receivables) account and “Profit share income received from uncollectible loans and other receivables” account. Released loan loss provisions are accounted as a reversal from provision expense if realized in the current year, and the remaining amounts are recognized as income in the account of collections from the prior year expenses. In addition to specific loan loss provisions, general loan loss provision are recognized within the framework of the regulation on “Methods and Principles for the Determination of Loans and Other Receivables to be Reserved for and Allocation of Reserves” published in the Official Gazette No. 26333 dated 1 November 2006. Except for specific provisions, the Bank allocates general reserve in accordance with Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”
VII. Explanations on Impairment of Financial Assets At each balance sheet date, the Bank evaluates the carrying amounts of its financial asset or a group of financial assets to determine whether there is an objective indication that those assets have suffered an impairment loss. If such an indication exists, the Bank determines the related impairment. A financial asset or a financial asset group incurs impairment loss only if there is an objective indicator related to the occurrence (loss/ damage event) of one or more than one event (or occurrence) subsequent to initial recognition of that asset; and such loss event causes an impairment loss as a result of the effect on the reliable estimate of the expected future cash flows of the related financial asset and asset group. Any amounts attributable to expected losses arising from any future events is not recognized under no circumstances. Companies that are required to prepare separate financial statements under the statutory requirements in accordance with TAS 27 “Consolidated and Separate Financial Statements” can represent their subsidiaries or associates either at cost or based on requirements set out in TAS 39, “Financial Instruments: Recognition and Measurement”. In this respect, the Bank chooses to use the first method and presents the subsidiaries, jointly controlled entities and associates at cost less impairment loss, if any.
VIII. Explanations on Offsetting Financial Assets and Liabilities Financial assets and liabilities are offset when the Bank has a legally enforceable right to set off, and when the Bank has the intention of collecting or paying the net amount of related assets and liabilities. In other circumstances, the Bank does not offset financial asset and liabilities.
110 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
IX. Explanations on Sales and Repurchase Agreements and Lending of Securities The Bank enters into revenue sharing certificates repurchase agreements with the Central Bank of the Republic of Turkey for the money market transactions.
X. Explanations on Assets Held for Sale, Discontinued Operations and Liabilities Related to Those Assets The principles on accounting, assessment and disposal of assets held for sale are determined based on the Communiqué of “Principles and Procedures on Bank’s Disposal of Precious Metals and Assets Held for Sale” published on November 1, 2006 in the official Gazette numbered 26333. Although the Bank has assets held for sale in the balance sheet, due to the fact that the Bank does not have a formal plan to dispose of these assets in one year subsequent to their classification date, such assets are continued to be depreciated. For this reason, these assets are classified as tangible assets instead of assets held for sale in the accompanying financial statements. Assets held for sale are measured at the lower of the carrying amount of assets and fair value less any cost incurred for disposal. Assets held for sale are not amortized and presented in the financial statements separately. In order to classify an asset as held for sale, only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale. Highly saleable condition requires a plan by the management regarding the sale of the asset to be disposed of (or else the group of assets), together with an active program for the determination of buyers as well as for the completion of the plan. Also the asset (or else the group of assets) shall be actively marketed in conformity with its fair value. On the other hand, the sale is expected to be recognized as a completed sale within one year after the classification date; and the necessary transactions and procedures to complete the plan should demonstrate the fact that there is remote possibility of making any significant changes or cancellation of the plan. Various events and conditions may extend the completion period of the disposal more than a year. If such delay arises from any events and conditions beyond the control of the entity and there is sufficient evidence that the entity has an ongoing disposal plan for these assets, such assets (or else group of assets) are continued to be classified as assets held for sale (or else group of assets). As of December 31, 2011, assets held for sale amounts to TRY 8.724 Thousand (December 31, 2010: TRY 6.509 Thousand). A discontinued operation is a division of a bank that is either disposed of or held for sale. Results of discontinued operations are included in the income statement separately. The Bank’s has not a discontinued operation.
XI. Explanations on Goodwill and Other Intangible Assets Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognized at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. No goodwill amount is recognized in the unconsolidated financial statements of the Bank as of the balance sheet date. Intangible assets acquired prior to January 1, 2005 are accounted for at restated cost less accumulated depreciation and any impairment loss, and the intangible assets acquired in subsequent periods are accounted for at acquisition cost less accumulated depreciation and any impairment loss if any, for those acquired prior to January 1, 2005. Intangible assets are amortized by using the straight line method considering their useful lives. Amortization method is reviewed at the end of each year periodically. Intangible assets mainly constitute of rights and amortized using the straight line method in 5 years.
111 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
XII. Explanations on Tangible Assets Prior to January 1, 2005, tangible assets are accounted for at acquisition cost plus any other direct costs incurred to bring the asset for ready to use. Tangible assets are measured at their acquisition cost less accumulated depreciation and impairment loss, if any. Depreciation of assets held less than one year as of the balance sheet date is accounted for proportionately. If the fair value of tangible assets is under their carrying value, impairment loss is allocated for exceeding amounts and these amounts are recognized as impairment in the financial statements. Gains or losses resulting from disposals of tangible assets are recognized in the income statement. Maintenance costs of the tangible assets are recognized in the income statement as an expense. There are no pledges, mortgages, or other restrictions on tangible assets.
Tangible Asset Useful Life Safety Boxes 5 years Office Equipment 5 years Furniture and Fixtures 5 years Vehicles 5 years Leasehold Improvements 5 years Buildings 50 years
XIII. Explanations on Leasing Transactions
Bank as a Lessor: Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the amount of the Bank’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Bank’s net investment outstanding in respect of the leases.
Bank as a Lessee: Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Assets held under finance leases are recognized as assets of the Bank at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Bank’s general policy on borrowing costs. As of December 31, 2011, the Bank as a lessee has operating leases for vehicles, general management and branches in addition to its assets through financial lease.
XIV. Explanations on Provisions and Contingent Liabilities Provisions are recognized when there is a present obligation, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are continuously reviewed in order to determine whether there is any possibility of cash flow with regards to the sources having economic benefit for the Bank.
XV. Explanations on Liabilities for Employee Benefits Under the existing Turkish law and union agreements, severance indemnity payment is required for employees retired or fired except resignations. The severance indemnity pay provision recognized represents the present value of the defined benefit obligation as adjusted for unrecognized gains and losses in accordance with TAS 19 “Employee Benefits”. The defined obligation is determined by independent actuaries.
112 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
The main actuarial assumptions used in the calculation of severance indemnity pay provision are as follows:
December 31, 2011 (*) December 31, 2010 Discount Rate 9,2% - 11,55% 10% Inflation Rate 4,5% - 8,75% 5,1%
(*) According to employees retirement dates, different rates have been used in the range of rates given in the table above.
TRY 2.732 (TRY full amount) salary ceiling, which was effective as of December 31, 2011 was taken into account in the current year calculations. It is assumed that the amount of the salary ceiling will increase each year in line with the inflation rate. The age of retirement is considered as the earliest age possible that an individual can retire and CSO 1980 female/male mortality table is used for the mortality rate.
XVI. Explanations on Taxation Tax expense comprises of current tax and deferred tax expenses. Current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. According to the Article 32 of the Corporate Tax Law No: 5520 announced in the Official Gazette dated June 21, 2006, the corporate tax rate is 20%. Deferred tax asset or liability is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and are accounted for using the balance sheet method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized and recognized in the income statement. If deferred tax is in connection with the assets directly associated with the equity, it shall be directly associated with shareholder’s equity items. Taxes payables and prepaid taxes are offset since they are levied by the same taxation authority. Deferred tax assets and liabilities are also offset. The Bank has adjusted its statutory financial statements based on inflation accounting as of January 1, 2004 in accordance with Law No: 5024.
XVII. Additional Disclosures on Borrowings Borrowings are recognized in accordance with TAS 39 “Financial Instruments: Recognition and Measurement”. No specific hedging technique is applied for borrowings, their accounting and valuation methods excluding some general methods applied for avoiding any liquidity and currency risks. There are no debt securities or convertible bonds issued by the Bank.
XVIII. Explanations on Issuance of Share Certificates As of December 31, 2011, there are no exported share certificates of the Bank.
XIX. Explanations on Avalized Drafts and Acceptances Avalized drafts and acceptances are realized simultaneously with the payment dates of the customers and they are presented in the off-balance sheet commitment accounts.
113 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
XX. Explanations on Government Incentives As of balance sheet date, there are no government incentives used by the Bank.
XXI. Explanations on Segment Reporting The Bank operates in corporate, commercial and retail banking areas in line with its mission by means of profit/loss sharing methodology.
Current Period Retail Corporate and Commercial Treasury Undistributed Total Total Assets 2.546.891 10.829.396 1.854.936 1.958.876 17.190.099 Total Liabilities 8.458.383 3.938.660 1.748.752 3.044.304 17.190.099 Net Profit Share Income / (Expense) (*) (289.384) 911.657 9.187 (236) 631.224 Net Fees and Commissions Income / (Expense) 11.929 229.316 (3.324) 21.887 259.808 Other Operating Income / (Expense) (7.628) (17.078) - (597.194) (621.900) Profit Before Tax (285.083) 1.123.895 5.863 (575.543) 269.132 Tax Provision - - - (53.042) (53.042) Net Profit for the Period (285.083) 1.123.895 5.863 (628.585) 216.090
(*) The allocation of retail, corporate and commercial banking segments above, is the result of differentiation in fund collection and allocation procedures of the participation banks.
Prior Period Retail Corporate and Commercial Treasury Undistributed Total Total Assets 1.660.799 9.357.642 2.212.187 1.282.791 14.513.419 Total Liabilities 7.611.765 3.554.817 627.634 2.719.203 14.513.419 Net Profit Share Income / (Expense) (*) (331.567) 872.795 39.115 13.195 593.538 Net Fees and Commissions Income / (Expense) 3.953 233.281 (1.408) 13.552 249.378 Other Operating Income / (Expense) (7.194) (16.476) - (494.948) (518.618) Profit Before Tax (334.808) 1.089.600 37.707 (468.201) 324.298 Tax Provision - - - (64.336) (64.336) Net Profit for the Period (334.808) 1.089.600 37.707 (532.537) 259.962
(*) The allocation of retail, corporate and commercial banking segments above, is the result of differentiation in fund collection and allocation procedures of the participation banks.
XXII. Explanations on Other Matters There are no explanations on other matters.
114 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SECTION FOUR: INFORMATION ON FINANCIAL STRUCTURE
I. Explanations on Capital Adequacy Standard Ratio The unconsolidated capital adequacy ratio of the Bank is 13,31% (December 31, 2010: 13,33%). Capital Adequacy Standard Ratio is calculated in accordance with the Communiqué on “Measurement and Assessment of Capital Adequacy of Banks”, which was published on November 1, 2006 in the Official Gazette No: 26333. The calculation of Capital Adequacy Ratio includes the methods used in determining the Capital Adequacy Ratio, determination of risk weighted assets and non-cash credits in line with the relevant banking regulation and measuring the market risk and operational risk ratio in line with the same regulation.
Risk Weights Bank Amount Subject to Credit Risk 0% 10% 20% 50% 100% 150% 200% Balance Sheet Items (Net) 2.732.982 - 353.323 4.401.848 7.107.347 62.207 17.875 Cash and Cash Equivalents 319.491 ------Matured Marketable Securities ------Due from Central Bank of Turkey Republic 562.382 ------Due from Domestic Banks, Foreign Banks, - - 348.379 - 10.986 - - Branches and Head Office Abroad Interbank Money Market Placements ------Receivables from Reverse Repo ------Transactions Reserve Deposits 661.056 ------Loans 246.274 - 4.820 4.155.335 5.420.347 62.207 17.875 Non-Performing Loans (Net) - - - - 283.452 - - Financial Lease Receivables 4.675 - - 91.816 114.988 - - Financial Assets Available for Sale 771.250 - - - 93 - - Held to Maturity Investments 75.000 ------Receivables from Installment Sales of ------Assets Sundry Debtors - - - - 7.783 - - Accrued Profit Share and Income Accruals 14.965 - 124 154.697 525.796 - - Subsidiaries, Associates and Entities Under - - - - 251.634 - - Common Control (Joint Vent.) (Net) Tangible Assets - - - - 412.847 - - Other Assets 77.889 - - - 79.421 - - Off-Balance Sheet Items 162.566 - 161.617 1.050.110 4.336.494 - - Guarantees and Commitments 162.566 - 154.152 1.050.110 4.336.494 - - Derivative Financial Instruments - - 7.465 - - - - Non Risk Weighted Accounts ------Total Risk Weighted Assets 2.895.548 - 514.940 5.451.958 11.443.841 62.207 17.875
115 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Summary of the Capital Adequacy Standard Ratio of the Bank:
Bank Current Period Prior Period Total Risk Weighted Assets (TRWA) 14.401.869 12.900.990 Amount Subject to Market Risk (ASMR) 62.788 38.438 Amount Subject to Operational Risk (ASOR) (*) 1.683.782 1.480.592 Shareholders’ Equity 2.148.814 1.922.505 Shareholders’ Equity / (TRWA + ASMR + ASOR) *100 13,31 13,33
(*) The amount subject to operational risk is in accordance with the “Regulation Regarding Measurement and Evaluation of the Bank’s Capital Adequacy Ratio” published in the Official Gazette No: 26333 dated 1 November 2006 which is effective from 1 June 2007. Operational risk is calculated by using the Basic Indicator Approach.
Components of Shareholders’ Equity:
CORE CAPITAL Current Period Prior Period Paid-in Capital (*) 894.525 894.525 Nominal Capital 894.525 894.525 Capital Commitments (-) - - Paid-in Capital Indexation Difference - - Share Premium 3.307 3.307 Share Cancellations Profits - - Legal Reserves 65.948 52.950 First Legal Reserve (Turkish Commercial Code 466/1) 64.021 51.023 Second Legal Reserve (Turkish Commercial Code 466/2) 1.927 1.927 Other Legal Reserve per Special Legislation - - Statutory Reserves - - Extraordinary Reserves 961.405 714.441 Reserves Allocated by the General Assembly 961.405 714.441 Retained Earnings - - Accumulated Losses - - Foreign Currency Share Capital Exchange Difference - - Inflationary Adjustment to Legal Reserve, Status Reserves and Extraordinary Reserves - - Profit 216.090 259.962 Current Year Net Profit 216.090 259.962 Prior Years’ Profits - - Provision for Possible Losses up to 25% of the Core Capital - - Gains on Sale of Associates and Subsidiaries and Properties to be added to Capital 4.275 4.275 Primary Subordinated Loans up to 15% of the Core Capital - - Losses that cannot be Covered by Reserves (-) - - Net Current Year Loss - - Prior Years’ Losses - - Leasehold Improvements (-) 48.384 55.453 Prepaid Expenses (-) (**) - 13.153 Intangible Assets (-) 11.012 10.419 Deferred Tax Asset Exceeding 10% of the Core Capital (-) - - Excess Amount in the Article 56, Clause 3 of the Banking Law (-) - - Total Core Capital 2.086.154 1.850.435
(*) The Bank has purchased 1.500.000 units of its own pledged shares at TRY 5.475 Thousands as a result of sale in accordance with Turkish Commercial Code article 329/2.The effect of purchase has been considered as deduction from the paid-in capital item in the capital adequacy table. (**) Prepaid expenses are not deducted from the core capital according to the Article 1 of the “Regulation for amending the Regulation on Equities of Banks” published in the Official Gazette No: 27870 dated March 10, 2011.
116 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SUPPLEMENTARY CAPITAL Current Period Prior Period General Loan Loss Provision 79.229 70.287 45% of the Revaluation Reserve for Movable Fixed Assets - - 45% of the Revaluation Reserve for Properties - - Bonus Shares Obtained from Associates, Subsidiaries and Entities Under Common Control - - Primary Subordinated Loans Excluded in The Calculation of the Core Capital - - Secondary Subordinated Loans - - 45% of Marketable Securities Valuation Differences (13.599) 3.029 Associates and Subsidiaries - - Available for Sale Securities (13.599) 3.029 Indexation Differences for Capital Reserves, Profit Reserves and Retained Earnings (Except - - Indexation Differences for Legal Reserves, Statutory Reserves and Extraordinary Reserves) Total Supplementary Capital 65.630 73.316 TIER III CAPITAL - - CAPITAL 2.151.784 1.923.751 DEDUCTIONS FROM THE CAPITAL 2.970 1.246 Shareholdings of Banks and Financial Institutions (Domestic, Foreign) from which the Bank - 34 Keeps Ten Percent or More of Capitals Shareholdings of Banks and Financial Institutions (Domestic, Foreign) from which the Bank Keeps Less than Ten Percent of Capitals which Exceed Ten Percent of Bank’s Core And - - Supplementary Capital Secondary Subordinated Loans Granted to Banks and Financial Institutions (Domestic, Foreign) or Qualified Shareholders and Placements That Possess the Nature of Their Primary - - or Secondary Subordinated Debt Loans Granted Being Non-Compliant with the Articles 50 and 51 of the Banking Law - - The Net Book Value of Properties Exceeding Fifty Percent of Equity and Properties Held for Sale and Properties and Commodity to be Disposed, Acquired in Exchange of Loans and 1.185 1.212 Receivables according to the Article 57 of the Banking Law and have not been Disposed yet After 5 Years after Foreclosure Other (*) 1.785 - TOTAL SHAREHOLDERS’ EQUITY 2.148.814 1.922.505
(*) In accordance with the principles of the regulations described in “Measurement and Practices of Bank’s Shareholder’s Equity” published in the Official Gazette No: 26333, Article 10/1, clause (e), dated November 1, 2006, BRSA has published the board decision related to consumer loans for the purpose of acquiring housing in the Official Gazette No: 27789 dated December 18, 2010.
II. Explanations on Credit Risk Credit worthiness of loan customers are monitored and semiannually and regularly reviewed by the Risk Monitoring Department of the Bank in accordance with the Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”. The account statements are obtained based on the prevailing regulations. Credit limits are determined by the Board of Directors, the Credit Committee of the Bank and the Credit Administration. The Bank obtains sufficient guarantees for its risks, comprising of personal surety, real-estate mortgage, cash blockage, and customer cheques. For the derivative transactions and other similar positions of the Bank, operational limits are set by the Board of Directors and the transactions are performed within these limits. There are no options or any other similar transactions. Indemnified non-cash loans are subject to the same risk weight with the overdue loans.
117 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
The Bank monitors restructured and rescheduled loans in accordance with the Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”. Financial position and business operation of those customers are analyzed systematically and, principal and profit payments based on the restructured payment plan are monitored by the corresponding departments. As of December 31, 2011, the risk of the Bank from its top 100 cash loan customers share in total cash loans ratio is 38,60% (December 31, 2010: 39,32%). As of December 31, 2011, the risk of the Bank from its top 100 non-cash loan customers share in total non-cash loan ratio is 47,01% (December 31, 2010: 47,22%). As of December 31, 2011, the cash and non-cash receivables of the Bank from its top 100 loan customers share in total balance sheet assets and non-cash loan ratio is 35,86% (December 31, 2010: 36,66%). As of December 31, 2011 the Bank’s general loan loss provision amount for its credit risk is TRY 131.066 Thousand (December 31, 2010: TRY 117.204 Thousand).
Distribution of Credit Risk by Types of Borrowers and Geographical Concentration:
Loans to Banks and Loans to Individuals and Marketable Securities Other Financial Other Loans (****) Corporate (**) (***) Institution Current Prior Current Prior Current Prior Current Prior Period Period Period Period Period Period Period Period Borrowers’
Concentration Private Sector 10.305.287 9.170.204 256 563 1.250 2.581 12.209.133 11.586.101 Public Sector 1.183 1.439 - - 856.597 471.516 - - Banks - - 366.753 186.612 - - 1.556.767 723.120 Retail 2.529.515 1.639.055 - - - - 166.782 194.113 Share Certificates - - - - 93 93 251.634 231.569 Total 12.835.985 10.810.698 367.009 187.175 857.940 474.190 14.184.316 12.734.903 Geographical Concentration Domestic 12.315.211 10.452.269 277.823 69.247 857.133 471.532 12.633.085 11.898.438 European Union 142.942 102.925 24.905 34.515 753 836 1.141.970 344.560 Countries OECD Countries (*) 10.881 9.740 9.041 7.406 54 1.822 173.063 321.702 Off-Shore Banking 175.405 136.804 39 - - - 15.897 18.103 Regions USA, Canada 37.183 796 36.866 74.871 - - 4.214 3.973 Other Countries 154.363 108.164 18.335 1.136 - - 216.087 148.127 Total 12.835.985 10.810.698 367.009 187.175 857.940 474.190 14.184.316 12.734.903
(*) OECD countries other than European Union countries, USA and Canada. (**) Non-performing loans are not included. (***) Includes financial assets at fair value through profit or loss, Available for Sale and Held to Maturity (****) Includes transactions defined as loan in Article 48 of Law No: 5411 and not covered in the first three columns of the Uniform Chart of Accounts above.
118 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Information According to Geographical Concentration:
Non-Cash Equity Assets Liabilities Net Income Loans Investments Current Period - December 31, 2011 Domestic 16.308.637 13.351.023 8.842.441 - 216.090 European Union Countries 170.553 833.082 162.203 - - OECD Countries (*) 19.976 22.209 146.443 - - Off-shore Banking Regions 192.542 126.530 15.896 - - USA, Canada 74.050 162.387 4.214 - - Other Countries 172.707 557.442 177.562 - - Associates, Subsidiaries and Entities Under - - - 251.634 - Common Control (Joint Vent.) Unallocated Assets/Liabilities (**) - - - - - Unallocated Assets/Liabilities 16.938.465 15.052.673 9.348.759 251.634 216.090 Total Prior Period - December 31, 2010 Domestic 13.796.716 11.814.522 8.923.684 - 259.962 European Union Countries 138.276 276.678 69.318 - - OECD Countries (*) 18.968 61.916 94.303 - - Off-shore Banking Regions 142.923 32.959 18.103 - - USA, Canada 75.667 52.649 3.973 - - Other Countries 109.300 333.028 117.502 - - Associates, Subsidiaries and Entities Under - - - 231.569 - Common Control Unallocated Assets/Liabilities (**) - - - - - Total 14.281.850 12.571.752 9.226.883 231.569 259.962
(*) OECD countries other than European Union countries, USA and Canada. (**) Assets and liabilities that cannot be allocated on an coherent basis.
119 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Sector Concentration for Cash Loans:
Current Period Prior Period TRY (%) FC (%) TRY (%) FC (%) Agriculture 227.134 2,01 7.834 0,50 270.144 2,75 6.423 0,65 Farming and Raising 177.436 1,57 4.355 0,28 219.777 2,24 5.252 0,53 Livestock Forestry, Wood and Paper 40.721 0,36 645 0,04 40.540 0,41 - - Fishery 8.977 0,08 2.834 0,18 9.827 0,10 1.171 0,12 Manufacturing 4.159.484 36,88 917.144 58,59 3.868.022 39,38 389.656 39,49 Mining and Quarry 186.542 1,65 329.822 21,07 163.782 1,67 65.098 6,60 Production 3.088.879 27,39 345.801 22,09 2.885.961 29,38 211.262 21,41 Electricity, Gas and Water 884.063 7,84 241.521 15,43 818.279 8,33 113.296 11,48 Construction 2.350.846 20,84 128.611 8,22 2.064.055 21,01 166.922 16,91 Services 1.719.671 15,25 508.254 32,47 1.717.887 17,48 420.177 42,57 Wholesale and Retail Trade 690.980 6,13 79.161 5,06 603.476 6,14 46.121 4,67 Hotel, Tourism, Food and 230.770 2,05 94.276 6,02 224.160 2,28 99.674 10,10 Beverage Services 262.792 2,33 269.811 17,24 319.317 3,25 257.557 26,10 Transportation and 110.698 0,98 7.388 0,47 89.029 0,91 - - Communication 136.322 1,21 - - 206.592 2,10 - - Financial Institutions 15.210 0,13 1.797 0,11 12.746 0,13 2.319 0,23 Real Estate and Renting 135.794 1,20 55.821 3,57 93.270 0,95 14.493 1,47 Services Self-Employment Services 137.105 1,22 - - 169.297 1,72 13 - Education Services 2.821.252 25,02 3.399 0,22 1.904.269 19,38 3.706 0,38 Health and Social Services 11.278.387 100,00 1.565.242 100,00 9.824.377 100,00 986.884 100,00 Other Total
The table below shows the maximum exposure to credit risk for the components of the financial statements:
Current Period Prior Period Central Bank of the Republic of Turkey 1.360.161 1.830.902 Due from Banks 359.365 186.612 Derivative Financial Assets Held for Trading 1.250 2.581 Financial Assets Available for Sale 779.637 394.577 Held to Maturity Investments 77.053 77.032 Loans 13.153.771 10.954.796 Finance Lease Receivables 297.751 105.471 Total 16.028.988 13.551.971
Contingent Liabilities 9.348.759 9.226.883 Commitments 4.216.034 2.765.831 Total 13.564.793 11.992.714 Total Credit Risk Exposure 29.593.781 25.544.685
120 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Credit Rating System: The credit risk is assessed through the internal rating system of the Bank, by classifying loans from highest grade to lowest grade according to the probability of default. As of December 31, 2011 consumer loans are excluded from the internal rating system of the Bank. Additional scoring methodologies are applied for these loans. The risks that are subject to rating models can be allocated as follows:
Share in Total (%) Category Description of Category Current Period Prior Period Above Average The borrower has a very strong financial structure 35% 35% Average The borrower has an intermediate level of financial structure 35% 36% The financial structure of the borrower has to be closely Under Average 13% 11% monitored in the medium term Not Graded The borrower is not assessed by the Bank 17% 18% Total 100% 100%
III. Explanations on Market Risk The amount subject to market risk is calculated and reported with the Standard Method described in Section 4 of the Communiqué on “Measurement and Assessment of Banks’ Capital Adequacy” published in the Official Gazette No: 26333 dated November 1, 2006. Market risk is measured on a monthly basis. a) Explanations related to market risk:
Amount (I) Capital Requirement to be Employed For General Market Risk - Standard Method 1.559 (II) Capital Requirement to be Employed For Specific Risk - Standard Method - (III) Capital Requirement to be Employed For Currency Risk - Standard Method 3.464 (IV) Capital Requirement to be Employed For Commodity Risk - Standard Method - (V) Capital Requirement to be Employed For Settlement Risk - Standard Method - (VI) Total Capital Requirement to be Employed For Market Risk Resulting From Options - Standard Method - (VII) Total Capital Requirement to be Employed For Market Risk in Banks Using Risk Measurement Model - (VIII) Total Capital Requirement to be Employed For Market Risk (I+II+III+IV+V+VI) 5.023 (IX) Amount Subject to Market Risk (12,5 x VIII) or (12,5 x VII) 62.788 b) Average market risk table calculated at the end of each month in the current period:
Current Period Prior Period Average Maximum Minimum Average Maximum Minimum Interest Rate Risk (*) 20.919 41.838 - 10.144 20.288 - Common Stock Risk ------Currency Risk 63.900 113.938 13.863 14.000 24.075 3.925 Commodity Risk ------Settlement Risk ------Option Risk ------Total Value Subject to Risk 84.819 155.776 13.863 24.144 44.363 3.925
(*) The Bank calculates by considering market risk of revenue sharing certificates, forward and swap transactions.
121 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
c) Other price risks: The Bank does not have investments in equity shares; hence it is not subject to share price risk.
V. Explanations on Currency Risk Foreign currency risk indicates the probability of loss that banks are subject to due to the exchange rate changes in the market. While calculating the share capital requirement, all foreign currency assets, liabilities and forward transactions of the Bank are taken into consideration and value at risk is calculated by using the standard method. Currency risk is managed by considering internal currency limits that are designated as Bank’s risk policies. Within the frame of legal limits defined by FC Net General Position / Equity Ratio and internal currency risk limits determined by Board of Directors , decisions are taken by Asset and Liability Committee meet periodically, take decisions for currency and parity risk hedge and those decisions are implemented strictly. The Bank does not use any derivative instruments for hedging. The Standard Method stated in the statutory reporting is used to measure the currency risk of the Bank. The risk measurements with the context of the Standard Method are performed on a monthly basis. The announced current foreign exchange buying rates of the Bank as of December 31, 2011 and the previous five working days are as follows:
December 31, 2011 US Dollar Euro Sterling 100 Japanese Yen “FC Evaluation Rate” of the Bank 1,9065 2,4626 2,9347 2,4475 Previously; 29.12.2011 (Day 1) 1,8897 2,4462 2,9228 2,4203 28.12.2011 (Day 2) 1,8847 2,4626 2,9501 2,4183 27.12.2011 (Day 3) 1,8833 2,4609 2,9444 2,4137 26.12.2011 (Day 4) 1,8809 2,4510 2,9382 2,4029 23.12.2011 (Day 5) 1,8779 2,4497 2,9432 2,4475
The simple arithmetic averages of the major current foreign exchange buying rates of the Bank for the thirty days before the balance sheet date are as follows; TRY 1,8577 per US Dollar, TRY 2,4463 per EUR, TRY 2,8972 per GBP and TRY 2,3823 per 100 JPY.
122 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Information on the Foreign Currency Risk of the Bank: Foreign Currencies (Thousand TRY)
EUR USD YEN Other Total Current Period - December 31, 2011 Assets Cash (Cash in TRY,Cash in Foreign Currency, Money in Transit, Cheques Purchased) and Balances with Central Bank of the 180.072 616.682 - 355.471 1.152.225 Republic of Turkey Due from Banks 120.984 208.973 1.200 12.326 343.483 Financial Assets at Fair Value Through Profit or Loss (**) - - - - - Money Market Placements - - - - - Financial Assets Available for Sale - - - - - Loans (*) 1.464.200 3.041.048 - - 4.505.248 Subsidiaries, Associates and Entities Under Common Control - - - - - Held to Maturity Investments - - - - - Derivative Financial Assets for Hedging Purposes - - - - - Tangible Assets - - - - - Intangible Assets - - - - - Other Assets 816 323 - - 1.139 Total Assets 1.766.072 3.867.026 1.200 367.797 6.002.095 Liabilities Current and Profit Sharing Accounts of Banks 49.109 68.242 - 43 117.394 Current and Profit Sharing Accounts 1.266.253 2.232.127 1.089 966.717 4.466.186 Money Market Borrowings - - - - - Funds Provided from Other Financial Institutions 517.435 933.116 - 7.279 1.457.830 Marketable Securities Issued - - - - - Sundry Creditors 1.086 1.550 - - 2.636 Derivative Financial Liabilities for Hedging Purposes - - - - - Other Liabilities (**) 8.681 65.324 138 58 74.201 Total Liabilities 1.842.564 3.300.359 1.227 974.097 6.118.247 Net Balance Sheet Position (76.492) 566.667 (27) (606.300) (116.152) Net Off-Balance Sheet Position 77.106 (581.698) 38 607.267 102.713 Financial Derivative Assets (***) 148.988 234.910 38 608.417 992.353 Financial Derivative Liabilities (***) 71.882 816.608 - 1.150 889.640 Non-Cash Loans (****) 1.535.113 3.567.860 86.954 111.325 5.301.252 Prior Period - December 31, 2010 Total Assets 1.137.440 3.181.535 5.561 129.542 4.454.078 Total Liabilities 1.324.989 2.672.825 6.457 145.664 4.149.935 Net Balance Sheet Position (187.549) 508.710 (896) (16.122) 304.143 Net Off-Balance Sheet Position 188.586 (508.585) 907 16.933 (302.159) Financial Derivative Assets 195.760 3.332 907 17.699 217.698 Financial Derivative Liabilities 7.174 511.917 - 766 519.857 Non-Cash Loans (****) 1.376.636 3.485.728 44.138 93.786 5.000.288
(*) TRY 2.919.385 Thousand foreign currency indexed loans are included in loans line (December 31, 2010: TRY 2.564.320 Thousand). (**) In accordance with the principles of the Regulations on the “Measurement and Practices of Bank’s Net Overall FX position Shareholders’ Equity Ratio on a Consolidated and Unconsolidated Basis”, general reserves recorded to expense accounts amounting to TRY 15.111 Thousand (December 31, 2010: TRY 12.045 Thousand) in assets and income accrual from derivative financial instruments amounting to TRY 1.250 Thousand (December 31, 2010 : TRY 2.581 Thousand) in liabilities and expense accrual from derivate financial instruments amounting to TRY 11.715 Thousand (December 31, 2010: TRY 5.397 Thousand), are not taken into consideration in the currency risk calculation. (***) TRY 350.891 Thousand forward asset purchase commitments are added to derivative financial assets and TRY 236.248 Thousand forward asset sale commitments are added to derivative financial liabilities (December 31, 2010: TRY 22.963 Thousand forward asset purchase commitments, and TRY 56.280 Thousand forward asset sale commitments ). (****) The related balances do not have any effect on off balance sheet position.
123 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Foreign Currency Sensitivity: The Bank is mainly exposed to USD and EUR currency risks. The following table details the Bank’s sensitivity to a 10% increase and decrease in the TRY against USD and EUR. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the possible change in foreign exchange rates. A positive number indicates an increase in profit or loss and other equity in the case of short position and a decrease in the case of long position where the TRY strengthens against USD and EUR.
Change in Currency Rate in % Effect on Profit or Loss Current Period Prior Period USD 10% increase (1.503) 13 USD 10% decrease 1.503 (13) EUR 10% increase 61 104 EUR 10% decrease (61) (104)
VI. Explanations on Interest Rate Risk Since the Bank has interest-free banking operations, it does not have any interest sensitive asset or liability and consequently, it does not have any interest rate risk.
VII. Explanations on Liquidity Risk In order to avoid the liquidity risk, the Bank diversifies its funding resources as customer deposits and foreign borrowings, considers the maturity match between assets and liabilities, focuses on strategies especially for the provision of long-term resources and retains its liquid assets in order to provide sufficient liquidity in any market fluctuations. Maturity structure of TRY and FC deposits, cost and change in the total amount are monitored on daily basis by considering the past developments and future expectations. The Bank’s policy is to establish an asset structure that primarily meets all kinds of liabilities by using liquid resources. The Board of Directors of the Bank determines a standard for the liquidity ratios, and applies the standard on a regular basis in order to ensure. The table below gives a summary of the liquidity ratio of the Bank:
Current Period 1st Term Period (Weekly) 2nd Term Period (Monthly) Average (%) 135,72 110,28 Highest (%) 167,26 121,20 Lowest (%) 112,65 100,63
Prior Period 1st Term Period (Weekly) 2nd Term Period (Monthly) Average (%) 164,61 127,57 Highest (%) 211,24 151,42 Lowest (%) 131,67 101,97
124 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Presentation of Assets and Liabilities according to Their Maturities:
Current Period- Up to 1 1-3 3-12 Over 5 Demand 1-5 Years Undistributed (*) Total December 31, 2011 Month Months Months Years Assets Cash (Cash in TRY,Cash in Foreign Currency, Money in Transit, Cheques 881.872 797.780 - - - - - 1.679.652 Purchased) and Balances with Central Bank of the Republic of Turkey Due from Banks 349.592 - 9.773 - - - - 359.365 Financial Assets at Fair Value Through - 1.250 - - - - - 1.250 Profit or Loss Money Market ------Placements Financial Assets 93 - 128.782 254.438 396.324 - - 779.637 Available for Sale Loans (**) - 1.844.532 1.539.782 4.505.279 4.723.556 528.231 - 13.141.380 Held to Maturity - - 77.053 - - - - 77.053 Investments Other Assets - 60.279 - - - - 1.091.483 1.151.762 Total Assets 1.231.557 2.703.841 1.755.390 4.759.717 5.119.880 528.231 1.091.483 17.190.099
Liabilities Current and Profit Sharing Accounts of 41.802 52.433 2.085 21.239 - - - 117.559 Banks Current and Profit 3.079.430 4.160.522 933.001 3.606.952 499.579 - - 12.279.484 Sharing Accounts Funds Provided from Other Financial - 159.282 66.818 970.477 228.680 32.573 - 1.457.830 Instruments Money Market - 279.207 - - - - - 279.207 Borrowings Marketable ------Securities Issued Sundry Creditors 29.581 349.737 - - - - - 379.318 Other Liabilities (***) - 169.363 - 51.483 - - 2.455.855 2.676.701 Total Liabilities 3.150.813 5.170.544 1.001.904 4.650.151 728.259 32.573 2.455.855 17.190.099 Net Liquidity Gap (2.069.079) (2.316.880) 753.486 109.566 4.391.621 495.658 (1.364.372) -
Prior Period - December 31, 2010 Total Assets 1.701.362 1.820.638 2.110.960 3.491.703 4.357.005 261.732 770.019 14.513.419 Total Liabilities 2.112.022 5.200.415 2.135.824 2.770.754 107.528 1.018 2.185.858 14.513.419 Net Liquidity Gap (410.660) (3.379.777) (24.864) 720.949 4.249.477 260.714 (1.415.839) -
(*)Asset items, such as tangible assets, investment in associates and subsidiaries, stationary supplies, prepaid expenses and non-performing loans which are required for banking operations and which cannot be converted to cash in short-term are included in this column. (**) Loans balance also includes Finance Lease Receivables balance. (***) Equity is presented in the “Undistributed” column under “Other Liabilities”.
125 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Analysis of financial liabilities based on the remaining contractual maturities :
The table below is drawn up based on the undiscounted contractual maturities of the financial assets and liabilities. Profit share expenses to be paid on such liabilities are included in this table. “Adjustments” column indicates items that may lead to potential cash flows in the following period. These items are included in maturity analysis, but not included in the balance sheet value of such financial liabilities.
Up to 1 1-3 3-12 Over 5 Demand 1-5 Years Adjustments Total Month Months Months Years December 31, 2011 Funds Collected 3.121.232 4.212.955 935.086 3.628.191 499.579 - - 12.397.043 Funds Borrowed - 160.400 68.475 995.224 331.087 40.045 (137.401) 1.457.830 Money Market - 279.319 - - - - (112) 279.207 Borrowings Total 3.121.232 4.652.674 1.003.561 4.623.415 830.666 40.045 (137.513) 14.134.080
December 31, 2010 Funds Collected 2.080.702 4.668.965 2.086.494 2.276.132 54.289 - - 11.166.582 Funds Borrowed - 27.026 47.278 513.795 72.834 1.147 (39.843) 622.237 Money Market ------Borrowings Total 2.080.702 4.695.991 2.133.772 2.789.927 127.123 1.147 (39.843) 11.788.819
Analysis of contractual expiry by maturity of the Bank’s derivative financial instruments:
Up to 1 Month 1-3 Months 3-12 Months 1-5 Years Over 5 Years Total December 31, 2011 Held for Trading Transactions 662.842 - - - - 662.842 Forward Sales Contracts ------Swap Sales Contracts 662.842 - - - - 662.842 Total 662.842 - - - - 662.842
Up to 1 Month 1-3 Months 3-12 Months 1-5 Years Over 5 Years Total December 31, 2010 Held for Trading Transactions 254.867 208.710 - - - 463.577 Forward Sales Contracts ------Swap Sales Contracts 254.867 208.710 - - - 463.577 Total 254.867 208.710 - - - 463.577
126 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
VIII. Presentation of Financial Assets and Liabilities at Fair Value
As the loan portfolio has fixed profit sharing rates, estimated fair value is calculated by using the discounted cash flows. The table below summarizes the book value and fair value of the financial assets and liabilities. Book value is the sum of the acquisition value and accumulated profit share accruals.
Book Value Fair Value Current Period Prior Period Current Period Prior Period Financial Assets 15.717.596 13.405.855 15.695.447 14.183.059 Banks and Other Financial 1.719.526 2.017.514 1.719.526 2.017.514 Institutions (*) Financial Assets Available For 779.637 394.577 779.637 394.577 Sale Held to Maturity Investments 77.053 77.032 77.282 79.962 Loans (**) 13.141.380 10.916.732 13.119.002 11.691.006 Financial Liabilities 14.513.398 12.069.662 14.457.976 12.069.758 Funds Collected From Banks (***) 117.559 12.916 117.559 12.916 Other Current and Profit Sharing 12.279.484 11.153.666 12.279.484 11.153.666 Accounts (***) Funds Provided From Other 1.457.830 622.237 1.402.408 622.333 Financial Institutions Sundry Creditors 379.318 280.843 379.318 280.843 Money Market Borrowings 279.207 - 279.207 -
(*) As receivables from banks and other financial institutions are in short-term nature, their fair value approximates to their book value. (**) In order to calculate the fair value of loans, current profit sharing rates are used as of the balance sheet date. Loan balance also includes finance lease receivables. Fair values of loans are calculated under the assumption that all installments are distributed equally. (***) Book value of the funds collected approximates to their fair value as it is revalued with the year end unit values.
The following table shows an analysis of financial instruments recorded at fair value, between those whose fair value is recorded on quoted market prices, those involving valuation techniques where all model inputs are observable in the market and, those where the valuation techniques involves the use of non observable inputs:
December 31, 2011 1st Level TRY 2nd Level TRY 3rd Level TRY Financial Assets Financial Assets at Fair Value Through Profit or Loss - 1.250 - Financial Assets Available for Sale 399.250 380.294 - Total 399.250 381.544 - Financial Liabilities Financial Liabilities at Fair Value Through Profit or Loss - - - Other Financial Liabilities - 11.715 - Total - 11.715 -
127 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
December 31, 2010 1st Level TRY 2nd Level TRY 3rd Level TRY Financial Assets Financial Assets at Fair Value Through Profit or Loss - 2.581 - Financial Assets Available For Sale 103.400 291.084 - Total 103.400 293.665 - Financial Liabilities Financial Liabilities at Fair Value Through Profit or Loss - - - Other Financial Liabilities - 5.397 - Total - 5.397 -
IX. Explanations Related to Transactions Carried out on Behalf of Other Parties and Fiduciary Assets The Bank does not deal with fiduciary operations or transactions made on behalf of other.
128 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SECTION FIVE: EXPLANATIONS AND DISCLOSURES ON THE UNCONSOLIDATED FINANCIAL STATEMENTS
I. Explanations and Disclosures Related to the Assets
1. Information on Cash and Balances with Central Bank of the Republic of Turkey
1.1. Information on Cash:
Current Period Prior Period TRY FC TRY FC Cash in TRY/ Foreign Currency 113.521 204.602 87.612 158.106 Central Bank of the Republic of Turkey 412.559 947.602 1.261.233 569.669 Other 1.347 21 8.328 17 Total 527.427 1.152.225 1.357.173 727.792
1.2. Information on Central Bank of the Republic of Turkey Accounts:
Current Period Prior Period TRY FC TRY FC Unrestricted Demand Deposit 412.559 149.823 1.261.233 248.965 Unrestricted Time Deposit - - - - Restricted Time Deposit - - - - Other (*) - 797.779 - 320.704 Total 412.559 947.602 1.261.233 569.669
(*) Stands for the reserve deposit kept in Central Bank of the Republic of Turkey in relation to foreign currency liabilities.
According to the communiqué No: 2005/1 on “Reserve Deposits”, the banks operating in Turkey are required to keep reserve deposit at the rates varying from 5% to 11% (December 31, 2010: 6 % for all TRY liabilities) for TRY liabilities and at the rates varying from 6% to 11% (December 31, 2010: 11% for all FC liabilities) for foreign currency liabilities mainly denominated in U.S. Dollar and Euro depending on the maturity of the liabilities. Profit share has not paid for reserve deposits.
2. Information on Financial Assets at Fair Value through Profit or Loss
2.1. Information on Financial Assets at Fair Value through Profit or Loss Blocked/Given as Collateral or Subject to Repurchase Agreements: None.
2.2. Positive Differences related to Derivative Financial Assets Held-for-Trading:
Current Period Prior Period TRY FC TRY FC Forward Transactions (*) - 1.121 - 67 Swap Transactions - 129 - 2.514 Futures Transactions - - - - Options - - - - Other - - - - Total - 1.250 - 2.581
(*) Includes forward asset purchase/sale commitments.
129 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
3. Information on Banks
3.1. Information on Banks and Other Financial Institutions:
Current Period Prior Period TRY FC TRY FC Banks 15.882 343.483 36.237 150.375 Domestic 15.882 261.685 36.237 32.447 Foreign - 81.798 - 117.928 Branches and Head Office Abroad - - - - Total 15.882 343.483 36.237 150.375
3.2. Information on Foreign Bank Accounts:
Unrestricted Amount Restricted Amount Current Period Prior Period Current Period Prior Period European Union Countries 24.905 34.515 - - USA, Canada 36.866 74.871 - - OECD Countries (*) 9.041 7.406 - - Off-Shore Banking Regions 39 - - - Other 1.174 1.136 9.773 - Total 72.025 117.928 9.773 -
(*) OECD countries other than European Union countries, USA and Canada.
4. Information on Financial Assets Available for Sale
4.1. Information on Financial Assets Available for Sale Given as Collateral/Blocked or Subject to Repurchase Agreements:
4.1.1 Information on financial assets Available for Sale given as collateral or blocked: None.
4.1.2 Financial assets Available for Sale subject to repurchase agreements: As of December 31, 2011, the Bank has revenue sharing certificates in “Available for Sale Financial Assets” portfolio which are subject to repurchase agreements with the Central Bank of the Republic of Turkey amounting to TRY 322.459 Thousand nominal value (December 31, 2010: None) and TRY 325.712 Thousand fair value (December 31, 2010: None).
4.2. Information on Financial Assets Available for Sale: As of December 31, 2011, the Bank has revenue sharing certificates which have TRY 775.000 Thousand nominal value (December 31, 2010: TRY 375.000 Thousand) and TRY 779.544 Thousand fair value at “Available for Sale Financial Assets” portfolio (December 31, 2010: TRY 394.484 Thousand).
Current Period Prior Period Debt Securities 783.294 394.484 Quoted on a Stock Exchange 399.250 103.400 Not Quoted (*) 384.044 291.084 Share Certificates 93 93 Quoted on a Stock Exchange - - Not Quoted 93 93 Impairment (-) (3.750) - Total 779.637 394.577
(*) Includes debt securities that are not traded in the stock market at the end of the related periods although they are listed.
130 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5. Information on Loans
5.1. Information on All Types of Loans and Advances Given to Shareholders and Employees of the Bank:
Current Period Prior Period Cash Non-Cash Cash Non-Cash Direct Loans Granted to Shareholders 57.567 2.565 78.453 3.138 Corporate Shareholders 22.986 1.870 33.583 2.655 Real Person Shareholders 34.581 695 44.870 483 Indirect Loans Granted to Shareholders 148.505 162.080 94.095 39.644 Loans Granted to Employees 14.291 118 9.870 118 Total 220.363 164.763 182.418 42.900
5.2. Information on First and Second Group Loans and Other Receivables Including Restructured or Rescheduled Loans:
Closely Monitored Loans and Other Standard Loans and Other Receivables Receivables (*) Loans and Other Restructured or Loans and Other Restructured or Cash Loans Receivables Rescheduled Receivables Rescheduled Loans Discount Notes - - - - Export Loans 132.974 2.789 11.641 111.799 Import Loans 171.345 - - - Business Loans 8.505.578 92.516 273.119 379.901 Consumer Loans 1.615.760 518 12.363 877 Credit Cards 927.066 2.569 6.690 1.010 Investments on Profit/Loss 7.623 - - - Partnership Precious Metals Loans - - - - Loans Given to Financial Sector 256 - - - International Loans 429.707 758 27.782 69.914 Other 35.376 1 7.198 16.499 Other Receivables - - - - Total 11.825.685 99.151 338.793 580.000
(*) In addition to the closely monitored loans, the Bank also has TRY 1.384 Thousand of closely monitored finance lease receivables. (December 31, 2010: TRY 320 Thousand).
5.3. Loan Distribution based on the Maturity Structure:
Closely Monitored Loans and Other Standard Loans and Other Receivables Receivables Loans and Other Restructured or Loans and Other Restructured or Receivables Rescheduled Receivables Rescheduled Short-Term Loans and Other 3.721.056 3.275 82.924 18.031 Receivables Loans 3.721.056 3.275 82.924 18.031 Other Receivables - - - - Medium-Term and Long-Term 8.104.629 95.876 255.869 561.969 Loans Loans 8.104.629 95.876 255.869 561.969 Other Receivables - - -
131 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.4. Information on Consumer Loans, Retail Credit Cards, Loans Given to Personnel and Personnel Credit Cards:
Short Term Medium-term and Long-term Total Consumer Loans-TRY 4.725 1.612.026 1.616.751 Housing Loans 1.882 1.498.834 1.500.716 Vehicle Loans 1.075 105.304 106.379 Consumer Loans 532 7.888 8.420 Other 1.236 - 1.236 Consumer Loans-FC Indexed - 4.938 4.938 Housing Loans - 4.812 4.812 Vehicle Loans - 65 65 Consumer Loans - 61 61 Other - - - Consumer Loans-FC - - - Housing Loans - - - Vehicle Loans - - - Consumer Loans - - - Other - - - Retail Credit Cards-TRY 879.849 13.686 893.535 With Installments 273.318 13.686 287.004 Without Installment 606.531 - 606.531 Retail Credit Cards-FC - - - With Installments - - - Without Installment - - - Personnel Loans-TRY 107 7.715 7.822 Housing Loans 5 3.339 3.344 Vehicle Loans 63 4.053 4.116 Consumer Loans 39 323 362 Other - - - Personnel Loans-FC Indexed - 7 7 Housing Loans - 7 7 Vehicle Loans - - - Consumer Loans - - - Other - - - Personnel Loans-FC - - - Housing Loans - - - Vehicle Loans - - - Consumer Loans - - - Other - - - Personnel Credit Cards-TRY 6.338 124 6.462 With Installments 2.614 124 2.738 Without Installment 3.724 - 3.724 Personnel Credit Cards-FC - - - With Installments - - - Without Installment - - - Overdraft Account-TRY(Individuals) - - - Overdraft Account-FC (Individuals) - - - Total 891.019 1.638.496 2.529.515
132 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.5. Information on Installment Basis Commercial Loans and Corporate Credit Cards:
Short Term Medium-term and Long-term Total Installment Basis Commercial Loans-TRY 21.663 16.429 38.092 Business Loans 51 9.112 9.163 Vehicle Loans 21 7.317 7.338 General Purpose Loans - - - Other 21.591 - 21.591 Installment Basis Commercial Loans-FC Indexed - - - Business Loans - - - Vehicle Loans - - - General Purpose Loans - - - Other - - - Installment Basis Commercial Loans-FC - - - Business Loans - - - Vehicle Loans - - - General Purpose Loans - - - Other - - - Corporate Credit Cards-TRY 37.267 71 37.338 With Installments 1.850 71 1.921 Without Installment 35.417 - 35.417 Corporate Credit Cards-FC - - - With Installments - - - Without Installments - - - Overdraft Account-TRY(Corporate) - - - Overdraft Account- FC (Corporate) - - - Total 58.930 16.500 75.430
5.6. Allocation of Loans according to Borrowers:
Current Period Prior Period Public Sector 1.183 1.439 Private Sector 12.842.446 10.809.822 Total 12.843.629 10.811.261
5.7. Domestic and Foreign Loans:
Current Period Prior Period Domestic Loans 12.315.468 10.452.831 Foreign Loans 528.161 358.430 Total 12.843.629 10.811.261
5.8. Loans Granted to Subsidiaries and Associates:
Current Period Prior Period Loans Granted to Subsidiaries and Associates Directly 107.795 77.494 Loans Granted to Subsidiaries and Associates Indirectly - - Total 107.795 77.494
133 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.9. Specific Provisions Provided against Loans:
Current Period Prior Period Loans and Receivables with Limited Collectability 40.541 6.737 Loans and Receivables with Doubtful Collectability 62.435 37.039 Uncollectible Loans and Receivables 202.612 259.840 Total 305.588 303.616
5.10. Information on Non-Performing Loans (Net):
5.10.1. Information on Loans and Other Receivables included in the Non-Performing Loans which are Restructured or Rescheduled:
III Group IV Group V Group Loans and Loans and Uncollectible Loans Receivables with Receivables with and Receivables Limited Collectability Doubtful Collectability Current Period (Gross Amount Before Specific Provision) 10.751 13.290 1.700 Restructured Loans and Other Receivables 962 1.468 272 Rescheduled Loans and Other Receivables 9.789 11.822 1.428 Prior Period (Gross Amount Before Specific Provision) 2.779 4.839 7.333 Restructured Loans and Other Receivables 2.116 2.344 3.966 Rescheduled Loans and Other Receivables 663 2.495 3.367
5.10.2. Information on Movement of Non-Performing Loans:
III Group IV Group V Group Loans and Loans and Receivables Uncollectible Loans Receivables with with Doubtful and Receivables Limited Collectability Collectability Ending Balance of Prior Period 42.035 90.907 314.209 Additions in the Current Period (+) (*) 504.261 10.488 45.527 Transfer from Other NPL Accounts (+) - 231.489 133.298 Transfer to Other NPL Accounts (-) (231.489) (133.298) - Collections in the Current Period (-) (*) (103.531) (52.762) (68.945) Write offs (-) - - (166.459) Corporate and Commercial Loans - - (111.642) Retail Loans - - (1.647) Credit Cards - - (51.179) Other - - (1.991) Ending Balance of the Current Period 211.276 146.824 257.630 Specific Provisions (-) (40.541) (62.435) (202.612) Net Balance at the Balance Sheet 170.735 84.389 55.018
(*) Movements between loan groups presented double within additions and collections in the interim financial reporting periods are offset by the year end.
134 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.10.3. Information on Foreign Currency Non-Performing Loans and Other Receivables:
Group III Group IV Group V Loans and Loans and Receivables Uncollectible Loans Receivables with with Doubtful and Receivables Limited Collectability Collectability Current Period Ending Balance - - 1.697 Specific Provisions (-) - - (1.257) Net Balance at the Balance Sheet - - 440 Prior Period Ending Balance - - 1.478 Specific Provisions (-) - - (1.087) Net Balance at the Balance Sheet - - 391
5.10.4. Gross and Net Amounts of Non-Performing Loans with Respect to User Groups:
Group III Group IV Group V Loans and Loans and Receivables Uncollectible Loans Receivables with with Doubtful and Receivables Limited Collectability Collectability Current Period (Net) Loans to Individuals and Corporates (Gross) 211.276 146.824 257.630 Specific Provisions (-) (40.541) (62.435) (202.612) Loans to Individuals and Corporates (Net) 170.735 84.389 55.018 Banks (Gross) - - - Specific Provisions (-) - - - Banks (Net) - - - Other Loans and Receivables (Gross) - - - Specific Provisions (-) - - - Other Loans and Receivables (Net) - - -
Prior Period (Net) Loans to Individuals and Corporates (Gross) 42.035 90.907 314.209 Specific Provisions (-) (6.737) (37.039) (259.840) Loans to Individuals and Corporates (Net) 35.298 53.868 54.369 Banks (Gross) - - - Specific Provisions (-) - - - Banks (Net) - - - Other Loans and Receivables (Gross) - - - Specific Provisions (-) - - - Other Loans and Receivables (Net) - - -
5.10.5. Non-Performing Loans and Main Guidelines of Liquidation Process for Loans and Receivables: If the Bank has collateral components stated in Article 9 of the Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”, such components are immediately liquidated by applying managerial or legal procedures. In the absence of collateral component, even if there is an indication of insolvency, the Bank reviews the financial intelligence of the debtor systematically to determine subsequently acquired property holdings and applies the legal procedures. Prior and subsequent to the legal procedures, as a result of reviews performed regarding the financial information provided, the Bank intends to liquidate its loans and other receivables from the companies that have potential development in the production and consequent contribution to the economy by means of the rescheduled agreements.
135 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.10.6. Explanation on Write–off Policy: Provision allocations arising from during or after the transfer of any loan receivables to “Non-performing loans” are performed by the Bank’s Loan Monitoring Department within the framework of the Banking Regulations and Supervisory Agency. Additionally, loans are written-off of against the assets, at least once a year, by the Credit Monitoring Agency to the extent that at least one of the following below is met and provision is fully made for all non-performing loans in accordance with the decision made by the Board of Directors: - Receivables with the document obtained from Collections Agency stating that the receivable cannot be followed up or; - Receivables assessed as uncollectible within existing conditions by the Law Department although the collection follow up process is going on.
5.11. Other Explanations and Disclosures: The information related to loan quality is stated as below:
Neither past due Past due but Past due and Current Period – December 31, 2011 Total nor Impaired not Impaired Impaired Loans (*) Corporate and Commercial Lending 5.496.990 385.712 287.399 6.170.101 Small Business Lending 3.881.933 512.141 263.544 4.657.618 Consumer Lending 1.616.278 13.240 7.009 1.636.527 Credit Cards 929.635 7.700 57.778 995.113 Total 11.924.836 918.793 615.730 13.459.359
(*) The Bank classifies small medium entities (“SME”) considering the criteria set out in the Council of Ministers’ decision dated November 18, 2005 and numbered 25997 published in the Official Gazette and the Communiqué on “Descriptions, Nature and Classification of Small Medium Entities”.
Neither past due Past due but Past due and Prior Period – December 31, 2010 Total nor Impaired not Impaired Impaired Loans (*) Corporate and Commercial Lending 4.797.616 541.809 67.751 5.407.176 Small Business Lending 3.468.651 319.019 275.436 4.063.106 Consumer Lending 913.669 16.660 6.790 937.119 Credit Cards 723.690 30.147 97.174 851.011 Total 9.903.626 907.635 447.151 11.258.412
(*) The Bank classifies small medium entities (“SME”) considering the criteria set out in the Council of Ministers’ decision dated November 18, 2005 and numbered 25997 published in the Official Gazette and the Communiqué on “Descriptions, Nature and Classification of Small Medium Entities”.
The details of loan guarantees and leasing portfolio are stated as below:
Neither past due Past due but Past due and Current Period (*)(**)(***) Total nor Impaired not Impaired Impaired Residential, Commercial or Industrial 4.812.274 365.376 99.616 5.277.266 Real Estates Financial Assets 516.885 113.870 15.500 646.255 Other 1.392.830 168.083 120.786 1.681.699 Total 6.721.989 647.329 235.902 7.605.220
(*) Individual loan agreements, general loan agreements, foreign currency cheques, suretyships, customer cheques and notes and other guarantees are not included in the table above. (**) The table above is prepared by taking into consideration the lowest value presented as a result of the comparison made between the outstanding loan balance as of the balance sheet date and the lower of the net amount reached at the fair value of collaterals stated in the corresponding expertise reports or the net collateral amount less any pledges or incumbrances on such amounts, if any. (***) Guarantee details of the credit portfolio are determined based on the “Measurement and Assessment of Capital Adequacy of Banks” published on November 1, 2006 in the Official Gazette numbered 26333.
136 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Neither past due Past due but Past due and Prior Period (*)(**)(***) Total nor Impaired not Impaired Impaired Residential, Commercial or Industrial 2.806.286 338.661 83.668 3.228.615 Real Estates Financial Assets 337.821 112.982 25 450.828 Other 1.220.199 184.860 74.116 1.479.175 Total 4.364.306 636.503 157.809 5.158.618
(*) Individual loan agreements, general loan agreements, foreign currency cheques, surety ships, customer cheques and notes and other guarantees are not included in the table above. (**) The table above is prepared by taking into consideration the lowest value presented as a result of the comparison made between the outstanding loan balance as of the balance sheet date and the lower of the net amount reached at the fair value of collaterals stated in the corresponding expertise reports or the net collateral amount less any pledges or in cumbrances on such amounts, if any. (***) Guarantee details of the credit portfolio are determined based on the “Measurement and Assessment of Capital Adequacy of Banks” published on November 1, 2006 in the Official Gazette numbered 26333.
Aging analysis of past due but not impaired loans per classes of financial statements is stated as below:
Less than 30 More than Current Period – December 31, 2011 31-60 Days 61-90 Days Total Days (*) 90 Days Loans and Advances to Customers Corporate Lending 304.216 61.091 20.405 - 385.712 SME Lending 388.047 49.282 74.812 - 512.141 Consumer Lending 2.126 6.729 4.385 - 13.240 Credit Cards 1.730 5.970 - - 7.700 Finance Lease Receivables 1.384 - - - 1.384 Total 697.503 123.072 99.602 - 920.177
(*) The Bank follows up the entire loan balance overdue less than 30 days within the closely monitored loans based on conservatism principal and TRY 621.618 Thousand of such amount is not overdue as of December 31, 2010 (Finance Lease Receivable TRY 1.384 Thousand).
Less than 30 More than Prior Period – December 31, 2010 31-60 Days 61-90 Days Total Days (*) 90 Days Loans and Advances to Customers Corporate Lending 443.294 32.530 65.985 - 541.809 SME Lending 175.747 43.752 99.520 - 319.019 Consumer Lending 914 9.352 6.394 - 16.660 Credit Cards 405 21.263 8.479 - 30.147 Finance Lease Receivables 33 2 285 - 320 Total 620.393 106.899 180.663 - 907.955
(*) The Bank follows up the entire loan balance overdue less than 30 days within the closely monitored loans based on conservatism principal and TRY 608.548 Thousand of such amount is not overdue as of December 31, 2009 (Finance Lease Receivable TRY 39 Thousand).
5.12. Other Explanations and Disclosures: Explanations on the loans and other receivables of the Bank for which the payment schedules are revised as per the agreement: Based on the Article 4 of the Communiqué “Methods and Principles for the Determination of Loans and Other Receivables to be Reserved for and Allocation of Reserves”, the number of loans, total amount and extension periods for which the payment schedules are revised after May 28, 2011 are as follows:
Extension Period Up to 1 Month 1-3 Months 3-12 Months 1-5 Years Over 5 Years Total Loans Quantity - 1 4 9 2 16 Amount - 54 338 1.871 22.948 25.211
137 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
6. Information on Held to Maturity Investments (Net)
6.1. Information on Financial Assets Blocked/Given as Collateral or Subject to Repurchase Agreements:
6.1.1 Information on Held to Maturity Investments Given as Collateral or Blocked: None.
6.1.2 Held to Maturity Investments Subject to Repurchase Agreements: As of December 31, 2011, the Bank has revenue sharing certificates in “Held to Maturity Investments” portfolio which are subject to repurchase agreements with the Central Bank of the Republic of Turkey amounting to TRY 42.000 Thousand nominal value (December 31, 2010: None) and TRY 43.269 Thousand fair value (December 31, 2010: None).
6.2. Information on Government Bonds Classified as Held- to-Maturity Investments: The Bank has TRY 77.053 Thousand of revenue sharing certificate as of December 31, 2011.
Current Period Prior Period TRY FC TRY FC Government Bonds - - - - Treasury Bills - - - - Other Public Debt Securities 77.053 - 77.032 - Total 77.053 - 77.032 -
6.3. Information on Held to Maturity Investments:
Current Period Prior Period TRY FC TRY FC Debt Securities 77.053 - 77.032 - Quoted on a Stock Exchange 51.446 - 51.435 - Not Quoted (*) 25.607 - 25.597 - Impairment Provision (-) - - - - Total 77.053 - 77.032 -
(*) Includes debt securities that are not traded in the stock market at the end of the related periods although they are listed.
6.4. Movement of Held to Maturity Investments:
Current Period Prior Period Beginning Balance 77.032 76.460 Foreign Currency Differences on Monetary Assets - - Purchases During Year - 50.000 Disposals through Sales and Redemptions - (50.000) Impairment Provision (-) - - Valuation Effects 21 572 Closing Balance 77.053 77.032
138 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7. Information on Associates
7.1. Information on Associates:
Bank’s Share Percentage, If Bank’s Risk Group Share Company Name Address (City/Country) Different-Voting Percentage (%) Percentage (%) (1) Yeni Mağazacılık A.Ş. (*) İstanbul/Turkey 21,84% 21,84% (2) Landmark Holding A.Ş. (*) İstanbul/ Turkey 21,84% 21,84% (3) Tamweel Holding S.A. (**) Dakar/Senegal 40,00% 40,00% (4) Kredi Garanti Fonu A.Ş. Ankara/ Turkey 1,67% 1,67%
(*) The Bank participated in Yeni Mağazacılık A.Ş. and Landmark Holding A.Ş. with the Financing Method for Participation Banks explained in the regulation No: 19 regarding “Banks’ Lending Transactions” published and became effective in the Official Gazette numbered 26333, dated November 1, 2006 by means of joint investment method. These are recorded as associates in accordance with the Uniform Chart of Accounts published in the Official Gazette numbered 26415 and dated January 26, 2007. (**) As of February 4, 2010, the Bank has paid for TRY 21.548 Thousand and as a consequence, became owner of 40% of Tamweel Africa Holding S.A. that is owned by the Islamic Corporation for the Development of the Private Sector (“ICD”) which is a group establishment of the Islamic Development Bank (“IDB”). TRY 9.077 Thousand and TRY 4.900 Thousand has paid for capital increase respectively on June 8, 2010 and October 3, 2011. As of the reporting date capital registry process has not been finalized yet.
7.2. Information on Associates: Income from Current Total Fixed Profit Share Prior Period Total Assets Equity Marketable Period Fair Value Assets Income Profit/Loss Securities Portfolio Profit/Loss (1) (*) 277.131 (116.811) 84.490 6 - (93.799) (86.383) (***) 175.277 (2) (*) 43.453 43.231 43.402 - - (192) (1.486) (****) 56.966 (3) (**) 706.650 104.781 15.707 25.121 - 13.158 8.539 - (4) (*) 207.899 201.048 2.904 3.979 - 7.672 7.632 -
(*) Financial information is provided from the associate’s unaudited financial statements as of December 31, 2011. (**) Financial information is provided from the associate’s not reviewed financial statements as of September 30, 2011. (***) It is expertise value of the Bank’s associate, Yeni Mağazacılık A.Ş., as of February 4, 2010. (****) It is the expertise value of the Bank’s associate, Landmark Holding A.Ş., as of February 9, 2010.
7.3. Movement of Associates: Current Period Prior Period Balance at the Beginning of the Period 86.606 45.063 Movements in Period 10.267 41.543 Purchases 10.267 41.543 Free Shares Obtained - - Dividends from Current Year Income - - Sales - - Revaluation Increase - - Provision for Diminution in Value - - Balance at the End of the Period 96.873 86.606 Capital Commitments (*) 1.000 2.000 Share Percentage at the End of the Period (%) 1,67%-40,00% 1,67%-40,00%
(*) It consists of capital commitment amounting to TRY 1.000 Thousand to Bank’s associate, Kredi Garanti Fonu A.Ş. (December 31, 2010: TRY 2.000 Thousand).
7.4. Sectoral Information on the Investments in Associates and the Related Carrying Amounts:
Current Period Prior Period Banks - - Insurance Companies - - Factoring Companies - - Leasing Companies - - Finance Companies - - Other Subsidiaries 96.873 86.606
139 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
8. Information on Subsidiaries (Net)
8.1. Information on Subsidiaries:
Bank’s Share Bank’s Risk Group Share Company Name Address (City/ Country Percentage, If Different- Percentage (%) Voting Percentage (%) (1) Nil Yönetim Hizmetleri Tur. San. ve Tic. A.Ş. Ankara/Türkiye 99,93% 99,93% (2) Asya Kart Teknoloji Hizmetleri A.Ş. İstanbul/Türkiye 99,50% 99,50% (3) Asya Emeklilik ve Hayat A.Ş. (*) İstanbul/Türkiye 97,99% 97,99% (4) Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti. İstanbul/Türkiye 95,00% 95,00% (5) Işık Sigorta A.Ş. İstanbul/Türkiye 65,42% 65,42% (6) Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. İstanbul/Türkiye 22,94% 22,94%
(*) The Bank has participated to Asya Emeklilik ve Hayat A.Ş. dated on July 1, 2011.
8.2. Information on Subsidiaries:
Profit Income from Total Fixed Current Period Prior Period (*) Total Assets Equity Share Marketable Fair Value Assets Profit/Loss Profit/Loss Income Securities Portfolio (1) 73.218 64.004 1.784 91 - 149 414 - (2) 5 2 - - - 9 (9) - (3) 9.002 8.778 472 255 (5) (1.221) - - (4) 211 208 - 12 - 1 5 - (5) 205.787 74.097 1.467 9.056 1.236 4.606 1.106 (**) 190.616 (6) 137.297 108.661 34.728 402 - (1.903) 842 (***) 192.051
(*) Financial information is provided from the unaudited financial statements of subsidiaries as December 31, 2011. (**) It is expertise value of the Bank’s subsidiary, Işık Sigorta A.Ş., as of February 4, 2010. (***)VAT included fair value is TRY 192.051 Thousand, including land, per expertise appraisal dated January 26, 2010.
8.3. Movement of Subsidiaries:
Current Period Prior Period Balance at the Beginning of the Period 144.963 139.810 Movements in Period 9.798 5.153 Purchases 9.798 5.153 Free Shares Obtained - - Dividends from Current Year Income - - Sales - - Revaluation Increase - - Provision for Diminution in Value - - Balance at the End of the Period 154.761 144.963 Capital Commitments (*) 9.798 - Share Percentage at the End of the Period (%) 22,94%-99,93% 22,94%-99,93%
(*) It consists of capital commitment amounting to TRY 9.798 Thousand to the Bank’s subsidary, Asya Emeklilik ve Hayat A.Ş.
140 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
8.4. Sectoral Information on the Financial Subsidiaries and the Related Carrying Amounts:
Subsidiaries Current Period Prior Period Banks - - Insurance Companies 50.154 50.154 Factoring Companies - - Leasing Companies - - Finance Companies - - Other Subsidiaries 47.655 37.857
8.5. Subsidiaries Quoted on the Stock Exchange: None.
9. Information on Entities under Common Control None.
10. Information on Finance Lease Receivables (Net)
10.1. Presentation of Finance Lease Receivables According to Their Remaining Maturities:
Current Period Prior Period Gross Net Gross Net Less than 1 Year 77.197 58.572 5.562 4.820 1 to 4 Years 183.888 139.523 106.620 92.391 More than 4 Years 131.344 99.656 9.532 8.260 Total 392.429 297.751 121.714 105.471
10.2. Information on Net Investments in Finance Leases:
Current Period Prior Period Gross Finance Lease Receivables 392.429 121.714 Unearned Finance Lease Income (-) (94.678) (16.243) Net Receivable from Finance Leases 297.751 105.471
11. Information on Derivative Financial Assets for Hedging Purposes None.
141 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
12. Information on Tangible Assets
Other Leased Tangible Assets to be Buildings Vehicles Tangible Total Assets Disposed off Assets (*) Cost Opening Balance - January 1, 2011 12.454 36.106 2.129 226.189 205.116 481.994 Additions - - 803 177.100 31.117 209.020 Disposals (8.123) (3.523) (714) (51.161) (6.902) (70.423) Transfers (**) - - (283) (2.274) - (2.557) Impairment Losses /(Reversal) (***) (111) - - 1.228 - 1.117 Closing Balance - December 31, 2011 4.220 32.583 1.935 351.082 229.331 619.151
Accumulated Depreciation (-) Opening Balance - January 1, 2011 2.442 26.667 397 6.138 92.898 128.542 Depreciation Expense 282 5.961 312 5.378 37.596 49.529 Disposals (1.970) (3.387) (134) (1.649) (5.788) (12.928) Transfers (**) - - - (76) - (76) Impairment (Losses) /Reversal (***) - - - 392 - 392 Closing Balance - December 31, 2011 754 29.241 575 10.183 124.706 165.459
Net Book Value - December 31, 2010 10.012 9.439 1.732 220.051 112.218 353.452
Net Book Value - December 31, 2011 3.466 3.342 1.360 340.899 104.625 453.692
(*) Other tangible fixed assets comprise leasehold improvements, safety box, office equipment, furniture, and other fixed assets. (**) TRY 3.117 Thousand of the balance is transferred from assets held for sale to tangible fixed assets, TRY 5.598 Thousand of assets to be disposed have acquired the classification as fixed assets is transferred to assets held for sale. (***) In the current period, the Bank has provided an additional impairment provision for assets disposed off amounting TRY 1.577 Thousand and reversed TRY 2.413 Thousand impairment due to disposals. In the current period, the Bank has provided an additional provision for buildings amounting TRY 111 Thousand.
Other Leased Tangible Assets to be Buildings Vehicles Tangible Total Assets Disposed off Assets (*) Cost Opening Balance - January 1, 2010 12.112 38.917 1.293 186.864 163.827 403.013 Additions - - 1.873 104.400 45.664 151.937 Disposals - (2.811) (1.037) (69.279) (4.375) (77.502) Transfers (**) - - - (1.234) - (1.234) Impairment (Losses) / Reversal (***) 342 - - 5.438 - 5.780 Closing Balance - December 31, 2010 12.454 36.106 2.129 226.189 205.116 481.994
Accumulated Depreciation(-) Opening Balance - January 1, 2010 2.127 21.632 703 4.127 64.530 93.119 Depreciation Expense 309 7.370 338 3.691 32.349 44.057 Accumulated Depreciation of Tangible - (2.335) (644) (1.875) (3.981) (8.835) Assets Held for Resale Transfers (**) - - - (95) - (95) Impairment (Losses) / Reversal (***) 6 - - 290 - 296 Closing Balance - December 31, 2010 2.442 26.667 397 6.138 92.898 128.542
Net Book Value - December 31, 2009 9.985 17.285 590 182.737 99.297 309.894
Net Book Value - December 31, 2010 10.012 9.439 1.732 220.051 112.218 353.452
(*) Other tangible fixed assets comprise leasehold improvements, safety box, office equipment, furniture and other fixed assets. (**) TRY 7.205 Thousand of the balance is transferred from assets held for sale to tangible fixed assets, TRY 8.344 Thousand of real estate to be disposed have acquired the classification as fixed assets is transferred to assets held for sale. (***) During the period, the Bank has provided an additional impairment of TRY 1.619 Thousand and reversed TRY 7.103 Thousand impairment due to disposals.
142 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
13. Information on Intangible Assets
13.1. Opening and Ending Book Values and Accumulated Depreciation Balances:
Current Period Prior Period Book Value 24.972 20.728 Accumulated Depreciation (13.960) (10.309) Net Book Value 11.012 10.419
13.2. Intangible Assets Movement Table:
Computer Software Cost Opening Balance- January 1, 2011 20.728 Additions 4.244 Disposals - Closing Balance- December 31, 2011 24.972
Accumulated Amortization (-) Opening Balance- January 1, 2011 10.309 Amortization Expense 3.651 Disposals - Closing Balance- December 31, 2011 13.960
Net Book Value- December 31, 2010 10.419
Net Book Value- December 31, 2011 11.012
Computer Software Cost Opening Balance- January 1, 2010 17.261 Additions 3.467 Disposals - Closing Balance- December 31, 2010 20.728
Accumulated Amortization (-) Opening Balance- January 1, 2010 7.037 Amortization Expense 3.272 Disposals - Closing Balance- December 31, 2010 10.309
Net Book Value- December 31, 2009 10.224
Net Book Value- December 31, 2010 10.419
14. Information on Investment Properties None (December 31, 2010: None).
143 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
15. Information on Deferred Tax Asset As of December 31, 2011, deferred tax asset computed on the temporary differences, except for general loan provision and provision for possible risks, is TRY 19.398 Thousand, and is recorded in the deferred tax asset account.
Current Period Deferred Tax Base Deferred Tax Asset/(Liability) Deferred Commission Income 60.881 12.176 Retirement Pay Provision and Short-Term Employee Benefits 28.854 5.771 Other Provisions 5.726 1.145 Valuation of Financial Assets 16.133 3.227 Tangible Assets Tax Base Differences (14.604) (2.921) Deferred Tax Asset (net) 96.990 19.398
Prior Period Deferred Tax Base Deferred Tax Asset/(Liability) Deferred Commission Income 33.145 6.629 Retirement Pay Provision and Short-Term Employee Benefits 23.058 4.612 Other Provisions 21.233 4.247 Tangible Assets Tax Base Differences (23.362) (4.672) Valuation of Financial Assets (5.038) (1.008) Other 17 3 Deferred Tax Asset (net) 49.053 9.811
Movement of the deferred tax asset as of December 31, 2011 and December 31, 2010 is stated as below:
Current Period Prior Period Deferred Tax Asset, January 1 9.811 4.754 Deferred Tax Recognized Directly Under Equity 5.083 (953) Deferred Tax Benefit /(Charge), December 31 4.504 6.010 Deferred Tax Asset 19.398 9.811
16. Information on Assets Held for Sale Assets held for sale consist of tangible assets which are obtained from non-performing loans and they are recognized as required in accordance with the prevailing the Communiqué of “Principles and Procedures on Bank’s Disposal of Precious Metals and Assets Held for Sale” published on November 1, 2006 in the Official Gazette numbered 26333 in the unconsolidated financial statements. As of December 31, 2011, assets held for sale amounts to TRY 8.724 Thousand (December 31, 2010: TRY 6.509 Thousand).
Current Period Prior Period Opening Balance- January 1 6.509 9.196 Additions 3.239 - Outflows (3.468) (3.791) Transfers (net) (*) 2.481 1.139 Impairment (37) (35) Closing Balance-December 31 8.724 6.509
(*) TRY 3.117 Thousand of the balance is transferred from assets held for sale to tangible fixed assets, TRY 5.598 Thousand of assets to be disposed have acquired the classification as fixed assets is transferred to assets held for sale.
17. Information on Other Assets Other assets amount to TRY 97.160 Thousand. Other assets account does not exceed 10% of the total assets (December 31, 2010: TRY 95.625 Thousand).
144 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
II. Explanations and Disclosures Related to the Liabilities
1.1. Information on Maturity Structure of Deposits:
Accumulated Up to 1 Up to 3 Up to 6 Up to 9 Up to 1 1 Year and Current Period Demand Profit Sharing Total Month Month Month Month Year Over Accounts I. Real Persons Current 560.652 ------560.652 Deposits-TRY II. Real Persons Profit Sharing - 1.552.244 799.747 163.642 - 121.309 2.314.661 - 4.951.603 Accounts-TRY III. Other Current Accounts-TRY 951.137 ------951.137 Public Sector 27.575 ------27.575 Commercial Sector 893.823 ------893.823 Other Institutions 28.391 ------28.391 Commercial and Other 1.183 ------1.183 Institutions Banks and Finance Houses 165 ------165 Central Bank ------Domestic Banks ------Foreign Banks ------Banks 165 ------165 Other ------IV. Profit Sharing Accounts-TRY - 227.521 272.785 35.508 - 18.441 795.816 - 1.350.071 Public Sector - 82 10 81 - - 2.590 - 2.763 Commercial Sector - 212.946 266.556 13.819 - 6.071 680.261 - 1.179.653 Other Institutions - 14.474 6.139 21.608 - 12.370 112.215 - 166.806 Commercial and Other - 19 80 - - - 750 - 849 Institutions Banks ------V. Real Persons Current 236.574 ------236.574 Deposits-FC VI. Real Persons Profit Sharing - 390.367 386.765 70.884 - 101.823 807.731 - 1.757.570 Accounts-FC VII. Other Current Accounts-FC 420.885 ------420.885 Commercial Residents in 350.762 ------350.762 Turkey Commercial Residents in 28.486 ------28.486 Abroad Banks 41.637 ------41.637 Central Bank ------Domestic Banks ------Foreign Banks 15.737 ------15.737 Banks 25.900 ------25.900 Other ------VIII.Profit Sharing Accounts- FC - 198.825 264.490 91.093 - 59.129 603.030 - 1.216.567 Public Sector - 30 - - - - 46 - 76 Commercial Sector - 147.610 262.053 12.296 - 35.292 575.303 - 1.032.554 Other Institutions - 634 342 78.772 - - 23.335 - 103.083 Commercial and Other - 1.987 10 25 - 1.210 1.865 - 5.097 Institutions Banks and Finance Houses - 48.564 2.085 - - 22.627 2.481 - 75.757 IX. Precious Metal Deposits 951.984 ------951.984 X. Profit Sharing Accounts Special ------Fund Pools-TRY Residents in Turkey ------Residents Abroad ------XI. Profit Sharing Accounts Special ------Fund Pools-FC Residents in Turkey ------Residents Abroad ------Total(I+II+…..+IX+X+XI) 3.121.232 2.368.957 1.723.787 361.127 - 300.702 4.521.238 - 12.397.043
145 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Accumulated Up to 1 Up to 3 Up to 6 Up to 9 Up to 1 1 Year and Demand Profit Sharing Total Month Month Month Month Year Over Accounts Prior Period 487.918 ------487.918 I. Real Persons Current - 1.851.180 1.175.698 254.717 - 190.314 1.471.293 - 4.943.202 Deposits-TRY II. Real Persons Profit Sharing - 1.851.180 1.175.698 254.717 - 190.314 1.471.293 - 4.943.202 Accounts-TRY III. Other Current Accounts- 878.481 ------878.481 TRY Public Sector 90.765 ------90.765 Commercial Sector 771.459 ------771.459 Other Institutions 14.455 ------14.455 Commercial and Other 829 ------829 Institutions Banks and Finance Houses 973 ------973 Central Bank ------Domestic Banks ------Foreign Banks ------Banks 973 ------973 Other ------IV. Profit Sharing Accounts- - 466.431 550.401 61.145 - 12.531 262.179 - 1.352.687 TRY Public Sector - 5 64 - - - - - 69 Commercial Sector - 455.276 508.302 28.153 - 8.679 243.774 - 1.244.184 Other Institutions - 10.653 41.960 32.992 - 3.852 17.569 - 107.026 Commercial and Other - 497 75 - - - 836 - 1.408 Institutions Banks ------V. Real Persons Current 261.028 ------261.028 Deposits-FC VI. Real Persons Profit Sharing - 523.290 544.120 122.153 - 132.089 474.593 - 1.796.245 Accounts-FC VII. Other Current Accounts- 329.903 ------329.903 FC Commercial Residents in 302.274 ------302.274 Turkey Commercial Residents in 20.243 ------20.243 Abroad Banks 7.386 ------7.386 Central Bank ------Domestic Banks ------Foreign Banks 5.172 ------5.172 Banks 2.214 ------2.214 Other ------VIII. Profit Sharing Accounts- - 252.706 457.861 120.325 - 35.627 127.227 - 993.746 FC Public Sector - 52 ------52 Commercial Sector - 231.416 447.709 37.631 - 34.664 112.202 - 863.622 Other Institutions - 588 5.405 79.313 - - 11.712 - 97.018 Commercial and Other - 20.629 211 3.381 - 963 3.313 - 28.497 Institutions Banks and Finance Houses - 21 4.536 - - - - - 4.557 IX. Precious Metal Deposits 123.372 ------123.372 X. Profit Sharing Accounts ------Special Fund Pools TRY Residents in Turkey ------Residents Abroad ------XI. Profit Sharing Accounts ------Special Fund Pools-FC Residents in Turkey ------Residents Abroad ------Total(I+II+…..+IX+X+XI) 2.080.702 3.093.607 2.728.080 558.340 - 370.561 2.335.292 - 11.166.582
146 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
1.2. Current and Participation Accounts Attributable to Real Entities/Persons under the Guarantee of Saving Deposit Insurance Fund Exceeding the Limit of the Deposit Insurance Fund:
Under the Guarantee of Saving Exceeding the Limit of Saving Deposit Deposit Insurance Insurance Current Period Prior Period Current Period Prior Period Real Persons Current and Profit Sharing Accounts 3.825.673 3.503.770 4.577.635 4.036.931 that are not Subject to Commercial Activities TRY Accounts 2.775.039 2.854.573 2.737.187 2.545.285 FC Accounts 1.050.634 649.197 1.840.448 1.491.646 Foreign Branches’ Deposits under Foreign - - - - Authorities’ Insurance Off-shore Banking Regions’ Deposits under Foreign - - - - Authorities’ Insurance
1.3. Current and Profit Sharing Accounts which are not under the Guarantee of Deposit Insurance Fund:
Current Period Deposits and Other Accounts held at Foreign Branches - Deposits and Other Accounts held by Shareholders and their Relatives 26.121 Deposits and Other Accounts of the Chairman and Members of Board of Directors, Chief Executive Officer, Senior 32.769 Executive Officers and their Relatives Deposits and Other Accounts held as Assets subject to the Crime defined in the Article 282 of the Turkish Criminal - Code no. 5237 dated 26 September 2004 Deposits at Depository Banks established for Off-Shore Banking Activities in Turkey - Total 58.890
2. Information on Derivative Financial Liabilities Held for Trading As of December 31, 2011, derivative financial liabilities held for trading amounts to TRY 11.715 Thousand (December 31, 2010: TRY 5.397 Thousand). Current Period Prior Period TRY FC TRY FC Forward Transactions (*) - 2.312 - 176 Swap Transactions - 9.403 - 5.221 Futures Transactions - - - - Options - - - - Other - - - - Total - 11.715 - 5.397
(*) Includes forward asset purchase/sale commitments.
3. Information on Borrowings
3.1. Information on Banks and Other Financial Institutions:
Current Period Prior Period TRY FC TRY FC Loans from Central Bank of the Republic of Turkey - - - - From Domestic Banks and Institutions - 24.821 - 45.096 From Foreign Banks, Institutions and Funds - 1.433.009 - 577.141 Total - 1.457.830 - 622.237
147 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
3.2. Maturity Analysis of Borrowings:
Current Period Prior Period TRY FC TRY FC Short-Term - 938.119 - 545.027 Medium-Term and Long-Term - 519.711 - 77.210 Total - 1.457.830 - 622.237
3.3. Additional Explanation Related to the Concentrations of the Bank’s Major Liabilities: None.
4. Other Liabilities with Exceeding 10% of the Balance Sheet Total (Excluding Off-Balance Sheet Commitments) and the Breakdown of Such Liabilities Constituting at Least 20% of the Grand Total Other liability items amount to TRY 283.839 Thousand and do not exceed 10% of the total balance sheet total (December 31, 2010: TRY 271.161 Thousand).
5. Information on Financial Lease Obligations None.
6. Information on Derivative Financial Liabilities for Hedging Purposes None.
7. Explanations on Provisions
7.1. Information on General Loan Loss Provision:
Current Period Prior Period General Loan Loss Provision 131.066 117.204 Provision for First Group Loans and Receivables 98.783 85.241 Profit Sharing Accounts’ Share 47.908 43.833 The Bank’s Share 50.875 41.408 Other - - Provision for Second Group Loans and Receivables 15.538 15.711 Profit Sharing Accounts’ Share 3.929 3.084 The Bank’s Share 11.609 12.627 Other - - Provision for Non Cash Loans 16.745 16.252
148 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7.2. Movement of General Loan Loss Provisions:
Current Period Opening Balance - January 1, 2011 117.204 Charge for Period 9.768 Reversal of Prior Period Expenses (3.925) Profit Sharing Accounts Share 8.019 Closing Balance- December 31, 2011 131.066 Prior Period Opening Balance – January 1, 2010 89.368 Charge for Period 22.088 Reversal of Prior Period Expenses (1.561) Profit Sharing Accounts Share 7.309 Closing Balance- December 31, 2010 117.204
7.3. Information on Provision for Foreign Exchange Losses on the Foreign Currency Indexed Loans and Finance Lease Receivables: As of December 31, 2011, the Bank’s provision for foreign currency indexed loans amounts to TRY 2.518 Thousand (December 31, 2010: TRY 9.962 Thousand). Provisions for foreign currency indexed loans are offset under the loan balance in the financial statements.
7.4. Information on the Specific Provisions Provided for Unindemnified Non-Cash Loans: As of December 31, 2011, the Bank’s specific provision provided for unindemnified non-cash loans amounts to TRY 21.016 Thousand (December 31, 2010: TRY 9.705 Thousand).
7.5. Information on Other Provisions:
7.5.1. Information on Provisions for Potential Risks: None (December 31, 2010: None).
7.5.2. Information on Other Provisions:
Other Provisions Current Period Prior Period Provision for Credit Cards Promotion of Banking Services 4.434 4.212 Provision for Unindemnified Non-Cash Loans 21.016 9.705 Provision Amount Allocated for Profit-Share Accounts 3.616 - Payment Commitment for Checks 2.001 6.170 Litigation Provision 1.251 1.021 Other (*) - 16.000 Total 32.318 37.108
(*) The balance includes provisions accounted for future losses which may be incurred on loan portfolio.
149 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7.5.3. Movement of the Retirement Pay Provision:
Current Period Prior Period Opening Balance - January 1 11.955 7.974 Current Service Cost 2.166 1.736 Interest Cost 1.151 870 Benefits Paid (1.188) (782) Settlement/Curtailment/Termination Loss/(Gain) 336 561 Actuarial Loss/(Gain) 981 1.596 Closing Balance – December 31 15.401 11.955
The Bank has reflected the employee benefit provision to the financial statements by using actuarial valuation method stated in TAS 19. As of December 31, 2011 the Bank provided a provision of TRY 13.453 Thousand for the unused vacation pays (December 31, 2010: TRY 11.103 Thousand).
8. Explanations on Taxes Payable
8.1. Information on Current Tax Liability: As of December 31, 2011, the Bank’s corporate tax payable is TRY 9.011 Thousand after offsetting pre-paid corporate tax (December 31, 2010: TRY 15.726 Thousand).
Current Period Prior Period Provision for Corporate Taxes 57.546 70.346 Prepaid Corporate Tax (48.535) (54.620) Corporate Tax Payable 9.011 15.726
8.2. Information on Taxes Payable:
Current Period Prior Period Corporate Taxes Payable 9.011 15.726 Taxation of Securities 8.599 7.179 Property Tax 638 471 Banking Insurance Transaction Tax (BITT) 10.537 6.261 Foreign Exchange Transaction Tax - - Value Added Tax Payable 415 1.748 Other 10.317 10.175 Total 39.517 41.560
150 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
8.3. Premiums:
Current Period Prior Period Social Security Premiums-Employee 4.574 2.522 Social Security Premiums-Employer 6.417 3.543 Bank Social Aid Pension Fund Premium-Employee - - Bank Social Aid Pension Fund Premium-Employer - - Pension Fund Membership Fees and Provisions-Employee - - Pension Fund Membership Fees and Provisions-Employer - - Unemployment Insurance-Employee 325 179 Unemployment Insurance-Employer 650 358 Other - - Total 11.966 6.602
8.4. Explanations on Deferred Tax Liabilities: None (December 31, 2010: None).
9. Information on Liabilities Regarding Assets Held for Sale and Discontinued Operations: None.
10. Information on Subordinated Loans None.
11. Information on Shareholders’ Equity
11.1. Presentation of Paid-in Capital:
Current Period Prior Period Common Stock 540.000 540.000 Preferred Stock (*) 360.000 360.000
(*) Preferred stockholders have the right to nominate candidates for the Board of Directors and the Audit Committee.
11.2. Paid-in Capital Amount, Explanation as to whether the Registered Share Capital System is Applicable at Bank if so Amount of the Registered Share Capital Ceiling: Registered capital system is not applied in the Bank.
11.3. Share Capital Increases and Their Sources; Other Information on Increased Capital Shares in the Current Period: None.
11.4. Information on Share Capital Increases from Capital Reserves: None.
11.5. Information on Share Capital Increases from Revaluation Funds: None.
11.6. Capital Commitments in the Last Fiscal Year and at the End of the Following Interim Period, General Purpose of These Commitments and Projected Resources Required to Meet These Commitments: None.
151 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
11.7. Indicators of the Bank’s Income, Profitability and Liquidity for Prior Periods and Possible Effects of These Future Assumptions on the Bank’s Equity due to the Uncertainty of These Indicators: The Bank carries its activities in profitable level and retains the major portion of its net profit within equity by means of transfers to reserve accounts and capital increases. The Bank, also allocates its equity to highly liquid and profit generating assets.
11.8. Summary of Privileges Granted to Preferred Stocks: The holders of the preferred stocks have the right to nominate candidates for the Board of Directors and the Audit Committee.
11.9. Explanations on Marketable Securities Value Increase Fund:
Current Period Prior Period From Associates, Subsidiaries, and Entities under Common Control (Joint Vent.) - - Valuation Difference - - Foreign Exchange Difference - - From Financial Assets Available for Sale (13.599) 6.732 Valuation Difference (13.599) 6.732 Foreign Exchange Difference - - Total (13.599) 6.732
III. Explanations and Disclosures Related to the Off-Balance Sheet Contingencies and Commitments
1. Explanation on Contingent Liabilities
1.1. Nature and Amounts of Irrevocable Loan Commitments:
Current Period Prior Period Asset Purchase-Sale Commitments 1.085.835 115.567 Capital Commitments for Associates And Subsidiaries (*) 10.798 2.000 Loan Granting Commitments 353.633 341.648 Commitments for Credit Card Expenditure Limits 2.066.016 1.661.296 Commitments for Credit Card And Retail Banking Promotions 7.236 7.257 Payment Commitments for Checks 650.723 580.319 Tax and Fund Liabilities from Export Commitments 1.883 1.880 Other Irrevocable Commitments 39.910 55.864 Total 4.216.034 2.765.831
(*) It consists of capital commitment amounting to TRY 9.798 Thousand to the Bank’s subsidary, Asya Emeklilik ve Hayat A.Ş. and TRY 1.000 Thousand to the Bank’s associates, Kredi Garanti Fonu A.Ş. (December 31, 2010: It consists of capital commitment amounting to TRY 2.000 Thousand to the Bank’s associate, Kredi Garanti Fonu A.Ş.).
1.2. Non-cash Loans Including Guarantees, Bank Acceptances and Avalized Drafts, Collaterals That Qualify as Financial Guarantees and Other Letters of Credit:
1.2.1. Non-cash Loans Including Guarantees, Bank Acceptances and Avalized Drafts, Collaterals That Qualify as Financial Guarantees and Other Letters of Credit:
Current Period Prior Period Guarantees 7.556.575 7.938.655 Bank Acceptances and Avalized Drafts 323.970 154.318 Letters of Credit 1.334.519 997.362 Other Guarantees 133.695 136.548 Total 9.348.759 9.226.883
152 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
1.2.2. Definite Guarantees, Provisional Guarantees, Surety ships, and Similar Transactions:
Current Period Prior Period Definite Letters of Guarantee 5.222.228 5.891.224 Provisional Letters of Guarantees 759.066 937.000 Suretyships and Similar Transactions 1.575.281 1.110.431 Total 7.556.575 7.938.655
1.3. Total Amount of Non-Cash Loans:
Current Period Prior Period Non-cash loans given against achieving cash loans 481.766 134.953 With maturity of 1 year or less than 1 year 6.335 5.405 With maturity of more than 1 year 475.431 129.548 Other non-cash loans 8.866.993 9.091.930 Total 9.348.759 9.226.883
2. Sectoral Risk Concentration of Non-Cash Loans
Current Period Prior Period TRY (%) FC (%) TRY (%) FC (%) Agricultural 59.359 1,47 53.049 1,00 59.075 1,40 21.182 0,42 Farming and Raising 46.078 1,14 47.705 0,90 46.038 1,09 21.014 0,42 Livestock Forestry 12.012 0,30 492 0,01 12.080 0,29 13 - Fishery 1.269 0,03 4.852 0,09 957 0,02 155 - Manufacturing 1.215.112 30,02 2.858.268 53,92 1.285.981 30,43 2.841.818 56,83 Mining 118.431 2,93 236.047 4,45 99.866 2,36 229.697 4,59 Production 665.044 16,43 2.084.712 39,32 706.971 16,73 1.660.230 33,20 Electric, Gas and Water 431.637 10,66 537.509 10,15 479.144 11,34 951.891 19,04 Construction 1.847.275 45,64 1.401.148 26,43 2.006.166 47,47 1.275.631 25,51 Services 848.606 20,97 958.710 18,08 803.842 19,01 821.537 16,42 Wholesale and Retail Trade 212.744 5,26 173.321 3,27 214.921 5,08 166.733 3,33 Hotel, Food and Beverage 69.196 1,71 107.478 2,03 73.912 1,75 58.248 1,16 Services Transportation and 171.298 4,23 399.846 7,54 143.854 3,40 414.787 8,30 Telecommunication Financial Institutions 124.597 3,08 221.315 4,17 81.229 1,92 123.979 2,48 Real Estate and Renting 38.550 0,95 5.832 0,11 87.120 2,06 18.576 0,37 Services Self-Employment Services 51.748 1,28 25.782 0,49 41.260 0,98 9.300 0,19 Education Services 30.567 0,76 7.083 0,13 24.405 0,58 4.199 0,08 Health and Social Services 149.906 3,70 18.053 0,34 137.141 3,24 25.715 0,51 Other 77.155 1,90 30.077 0,57 71.531 1,69 40.120 0,82 Total 4.047.507 100,00 5.301.252 100,00 4.226.595 100,00 5.000.288 100,00
153 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
3. Information on Ist and IInd Group Non-Cash Loans
I st Group II nd Group TRY FC TRY FC Non-Cash Loans 3.939.696 5.202.176 107.811 99.076 Letters of Guarantee 3.892.666 3.462.721 103.447 97.741 Endorsements and Acceptances 25.244 296.584 2.142 - Letters of Credit 758 1.330.286 2.140 1.335 Endorsements - - - - Underwriting Commitments - - - - Factoring Commitments - - - - Other Commitments and Contingencies 21.028 112.585 82 -
4. Derivative Financial Instruments
Derivative Transactions according to Purposes Trading Hedging Current Period Prior Period Current Period Prior Period Type of Trading Transactions Foreign Currency Related Derivative Transactions (I): 1.316.473 926.555 - - Forward Transactions - - - - Swap Transactions 1.316.473 926.555 - - Futures Transactions - - - - Option Transactions - - - - Interest Related Derivative Transactions (II) : - - - - Forward Interest Rate Transaction - - - - Interest Rate Swap Transactions - - - - Interest Option Transactions - - - - Futures Interest Transactions - - - - Marketable Securities Call-Put Options (III) - - - - Other Trading Derivative Transactions (IV) - - - - A. Total Trading Derivative Transactions (I+II+III+IV) 1.316.473 926.555 - -
Types of Hedging Transactions - - - - Fair Value Hedges - - - - Cash Flow Hedges - - - - Net Investment Hedges - - - - B. Total Hedging Related Derivatives - - - - Total Derivative Transactions (A+B) 1.316.473 926.555 - -
154 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
As of December 31, 2011, the breakdown of the Bank’s foreign currency forward transactions based on currencies are disclosed below in their TRY equivalents.
Current Period Forward Buy Forward Sell TRY 12.169 9.450 USD 9.533 653.392 EUR 44.327 - GOLD 587.602 - Total 653.631 662.842
Prior Period Forward Buy Forward Sell TRY 268.243 - USD - 463.577 EUR 194.735 - Total 462.978 463.577
As of December 31, 2011, the Bank does not have any derivative transactions for the purpose of cash flow hedge.
5. Explanations on Contingent Liabilities and Assets As of the balance sheet date, there are 204 ongoing court cases against the Bank amounting to TRY 19.825 Thousand and EUR 946 based on the information provided from the legal department of the Bank. (December 31, 2010: There were 172 ongoing court cases against the Bank amounting to TRY 18.161 Thousand and EUR 946 based on the information provided from the legal department of the Bank). For one of the ongoing court cases mentioned above, provision amounting to TRY 1.251 Thousand has been allocated (December 31, 2010: TRY 1.021 Thousand). Total amount of letters of guarantees, guarantees and commitments submitted by the Bank pursuant to its own internal affairs and guarantees given by other institutions submitted by the Bank pursuant to the third parties benefit of the Bank stands at TRY 32.430 Thousand and is recognized under “Other irrevocable commitments” item of off-balance sheet contingencies and commitments (December 31, 2010: TRY 31.352 Thousand).
6. Explanations on Custodian and Intermediary Services None.
155 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7. Summary Information on the Bank’s Rating by the International Rating Institutions
FITCH RATINGS
Foreign Currency Long Term B+ Short Term B Outlook Stable Turkish Lira Long Term B+ Short Term B Outlook Stable International Long Term A-(tour) Outlook Stable Individual Rating D Support Points 5
The information is obtained from the Fitch Ratings Report as of November 22, 2011.
MOODY’S
Financial Strength D Outlook Stable Foreign Currency Long Term Ba3 Short Term B1 Outlook Stable Turkish Lira Long Term Ba2 Short Term Ba1 Outlook Stable International Long Term A3 Short Term TR-1
The information is obtained from the Moody’s Investor Service report as of February 10, 2011. SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri A.Ş. has completed its Corporate Governance rating report for Bank Asya in accordance with the Turkish Capital Markets Board’s communiqué of “Capital Market Rating Operations and Corporate Governance Principles”. Bank Asya’s Corporate Governance rating score previously has been identified as 81,69 on July 1, 2010 and revised to 82,56 as of July 1, 2011.
156 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
IV. Explanations and Disclosures Related to the Income Statement
1. Information on Profit Share Income
1.1. Information on Profit Share on Loans:
I Group II Group TRY FC TRY FC Profit Share on Loans 1.070.992 102.071 25.346 3.051 Short Term Loans 358.215 29.292 3.321 141 Medium and Long Term Loans 698.268 72.779 22.025 2.910 Profit Share on Non-Performing Loans 14.509 - - - Premiums Received from Resource Utilization - - - - Support Fund
1.2. Profit Share from Banks:
Current Period Prior Period TRY FC TRY FC Central Bank of the Republic of Turkey (Reserve - - 13.364 - Deposit) Domestic Banks 31 - - - Foreign Banks (*) 1.289 572 20.394 1.975 Branches and Head Office Abroad - - - - Total 1.320 572 33.758 1.975
(*) Foreign banks include profit shares from “murabaha” loans.
1.3. Information on Interest Received from Marketable Securities:
Current Period Prior Period TRY FC TRY FC Financial Assets Held-for-Trading - - - - Financial Assets at Fair Value through Profit or - - - - Loss Financial Assets Available for Sale 49.234 - 21.050 - Held to Maturity Investments 8.882 - 9.834 - Total 58.116 - 30.884 -
1.4. Information on Profit Share Income Received from Associates and Subsidiaries:
Current Period Prior Period Profit Share Income Received from Associates and Subsidiaries 15.438 15.164
157 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
2. Information on Profit Share Expenses
2.1. Information on Interest on Funds Borrowed:
Current Period Prior Period TRY FC TRY FC Banks - 38.562 - 16.538 Central Bank of the Republic of Turkey - - - - Domestic Banks - 1.036 - 1.036 Foreign Banks - 37.526 - 15.502 Foreign Head Office and Branches - - - - Other Institutions - - - - Total - 38.562 - 16.538
2.2. Information on Profit Share Expense Given to Associates and Subsidiaries:
Current Period Prior Period Profit Share Expenses Given to Associates and Subsidiaries 7.585 6.133
2.3. Information on Profit Share Expense to Marketable Securities Issued: None.
158 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
2.4. Distribution of Profit Share Expense on Deposits Based on Maturity of Deposits:
Current Period Profit Sharing Accounts Up to 1 Up to 3 Up to 6 Up to 9 Up to 1 More than Account Name Total Month Month Month Month Year 1 Year TRY Banks and Finance Houses ------Real Person’s Profit Sharing Acc. 127.526 70.871 14.933 - 11.874 156.517 381.721 Public Sector Profit Sharing Acc. 4 28 6 - - 37 75 Commercial Sector Profit Sharing Acc. 17.957 22.520 1.136 - 1.374 52.461 95.448 Other Institutions Profit Sharing Acc. 915 2.150 1.026 - 879 3.156 8.126 Total 146.402 95.569 17.101 - 14.127 212.171 485.370 FC Banks and Finance Houses 533 67 406 - 583 29 1.618 Real Person’s Profit Sharing Acc. 16.548 14.974 3.078 - 5.010 23.526 63.136 Public Sector Profit Sharing Acc. 1 - - - - - 1 Commercial Sector Profit Sharing Acc. 5.660 11.252 1.307 - 2.099 18.210 38.528 Other Institutions Profit Sharing Acc. 16 166 4.386 - - 608 5.176 Precious Metal Deposits ------Total 22.758 26.459 9.177 - 7.692 42.373 108.459 Grand Total 169.160 122.028 26.278 - 21.819 254.544 593.829
Prior Period Profit Sharing Accounts Up to 1 Up to 3 Up to 6 Up to 9 Up to 1 More than Account Name Total Month Month Month Month Year 1 Year TRY Banks and Finance Houses ------Real Person’s Profit Sharing Acc. 88.688 102.234 27.032 - 20.927 157.190 396.071 Public Sector Profit Sharing Acc. 1 2 - - - - 3 Commercial Sector Profit Sharing Acc. 18.799 27.166 1.531 - 5.130 20.970 73.596 Other Institutions Profit Sharing Acc. 454 790 3.480 - 182 1.831 6.737 Total 107.942 130.192 32.043 - 26.239 179.991 476.407 FC Banks and Finance Houses 812 69 - - - - 881 Real Person’s Profit Sharing Acc. 14.736 20.560 7.796 - 8.360 30.298 81.750 Public Sector Profit Sharing Acc. 1 - - - - - 1 Commercial Sector Profit Sharing Acc. 5.335 13.712 5.215 - 2.272 6.961 33.495 Other Institutions Profit Sharing Acc. 14 309 3.321 - - 499 4.143 Precious Metal Deposits ------Total 20.898 34.650 16.332 - 10.632 37.758 120.270 Grand Total 128.840 164.842 48.375 - 36.871 217.749 596.677
159 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
3. Information on Dividend Income None (December 31, 2010: None).
4. Information on Net Trading Income (Net)
Current Period Prior Period Profit 6.057.300 3.265.633 Securities Trading Gains - - Gains on Derivative Financial Instruments 225.104 65.342 Foreign Exchange Gains 5.832.196 3.200.291 Loss (-) (6.018.180) (3.220.670) Securities Trading Losses - - Losses on Derivative Financial Instruments (160.894) (34.834) Foreign Exchange Losses (5.857.286) (3.185.836)
5. Information on Other Operating Income The detail of other operating income is stated as below:
Current Period Prior Period Communication Expense Reversal 1.203 9.719 Gain on Sale of Assets 22.619 19.079 Reversals from Previous Years’ Expenses (*) 88.007 88.478 Other 18.716 16.917 Total 130.545 134.193
(*) Includes TRY 67.242 Thousand reversals from specific provisions for loans, general loan provision, and doubtful fees and other receivables provision and TRY 12.293 Thousand reversals from provisions for cheques. (December 31, 2010: TRY 88.110 Thousand).
6. Provision Expenses of the Bank for Loans and Other Receivables
Current Period Prior Period Specific Provisions for Loans and Other Receivables 170.277 107.508 III. Group Loans and Receivables 30.827 27.471 IV. Group Loans and Receivables 953 14.379 V. Group Loans and Receivables 127.637 54.915 Doubtful Commission, Fee and Other Receivables 10.860 10.743 General Loan Loss Provision Expenses 9.768 22.088 Provision Expenses for Possible Losses - - Marketable Securities Impairment Losses - - Financial Assets at Fair Value through Profit or Loss - - Financial Assets Available for Sale - - Impairment Losses on Investment in Associates, Subsidiaries, Entities under - - Common Control and Held to Maturity Investments Investments in Associates - - Subsidiaries - - Entities under Common Control - - Held to Maturity Investments - - Other 48.153 37.891 Total 228.198 167.487
160 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7. Information on Other Operating Expenses
Current Period Prior Period Personnel Expenses 264.766 242.029 Provision for Employee Termination Benefits 4.634 4.763 Bank Social Aid Provision Fund Deficit Provision - - Impairment Losses on Tangible Assets 111 - Depreciation Expenses of Tangible Assets 44.151 40.366 Impairment Losses on Intangible Assets - - Impairment Losses on Goodwill - - Amortization Expenses of Intangible Assets 3.651 3.272 Impairment Losses on Investments Accounted for under Equity Method - - Impairment Losses on Assets to be Disposed off 1.577 1.619 Depreciation Expenses of Assets to be Disposed off 5.378 3.691 Impairment Losses on Assets Held for Sale 37 244 Other Operating Expenses 193.721 177.497 Operating Lease Expenses 57.324 44.714 Repair and Maintenance Expenses 3.560 2.681 Advertisement Expenses 30.015 33.650 Other Expenses 102.822 96.452 Loss on Sales of Assets 2.893 9.637 Other 42.448 47.169 Total 563.367 530.287
8. Information on Continuing Operations Profit or Loss Before Tax The Bank’s profit before tax is decreased by 17,01% (December 31, 2010: 14,30%) as compared to the prior year figures and total profit before tax amounts to TRY 269.132 Thousand (December 31, 2010: TRY 324.288 Thousand). Profit before tax includes TRY 631.224 Thousand (December 31, 2010: TRY 593.538 Thousand) net profit share income, TRY 259.808 Thousand (December 31, 2010: TRY 249.378 Thousand) net fees and commission income. Total operating expense amount is TRY 563.367 Thousand (December 31, 2010: TRY 530.287 Thousand).
9. Information on Continuing Operations Tax Provision As of December 31, 2011, current tax expense is TRY 57.546 Thousand (December 31, 2010: TRY 70.346 Thousand) and deferred tax income is TRY 4.504 Thousand (December 31, 2010: TRY 6.010 Thousand).
10. Information on Operating Profit/Loss After Taxes The Bank’s net profit for the year ended December 31, 2011 has declined by 16,88% in compare to the prior year’s net profit.
11. Explanations on Net Income / Loss for the Period: The nature and amount of certain income and expense items from ordinary operations is disclosed if the disclosure for nature, amount, and repetition rate of such items is required for the complete understanding of the Bank’s performance for the period: None. Effect of changes in accounting estimates on income statement for the current and, if any, for subsequent periods: None.
161 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
12. The Description and Amounts of Items which Constitute at Least 20% of Other Items in the Income Statement, If These Liabilities Exceed 10% of the Total Income Statement Other fees and commissions income/expense are stated as below: Current Period Prior Period Other Fees and Commission Received Member Firm-POS Fees and Commission 60.590 57.234 Credit Card Fees and Commission 51.726 40.938 Commissions on Collection and Disbursement 16.379 9.452 Expertise Fees 14.395 8.530 Money Transfer Commissions 8.811 6.978 Insurance Underwriting Commissions 8.285 5.686 Other 26.052 20.003 Total 186.238 148.821
Current Period Prior Period Other Fees and Commission Paid Credit Card Fees and Commission 53.573 45.550 Other 6.488 5.723 Total 60.061 51.273
13. Nature and Amount of Changes in Accounting Estimates which Have Material Effects on the Current Period or Expected to Have Material Effects on the Subsequent Periods None.
V. Explanations and Disclosures Related to the Statements of Changes in Shareholders’ Equity
1. Increases from Valuation of Financial Assets Available for Sale Increase resulting from revaluation of financial assets available for sale is TRY 13.599 Thousand (December 31, 2010: TRY 6.732 Thousand).
2. Increases Due to Cash Flow Hedges None.
3. Reconciliation of Foreign Exchange Differences at Beginning and End of Current Period None.
4. Dividends Declared Subsequent to the Balance Sheet Date, but Before the Announcement of the Financial Statements None.
5. Dividends per Share Proposed Subsequent to the Balance Sheet Date None.
6. Proposals to General Assembly for the Payment Dates of Dividends and if It will not be Distribute the Reasons for This The Board of Directors has not decided for profit distribution as of the reporting date.
7. Amounts Transferred to Legal Reserves As of December 31, 2011, amount transferred to legal reserves is TRY 12.998 Thousand (December 31, 2010: TRY 15.064 Thousand).
8. Information on Shares Issued None.
162 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
VI. Explanations and Disclosures Related to Statement of Cash Flows
1. Cash and Cash Equivalents
1.1. Components of Cash and Cash Equivalents and Accounting Policies Used to Determine Such Components: “Cash” is defined as cash in TRY and foreign currency, money in transit, cheques purchased and demand deposits in Banks, and “Cash equivalents” is defined as time deposits in Banks having original maturity less than three months and short term “murabaha” (sale at a markup) loans. Deposits held in Central Bank of the Republic of Turkey are not presented as cash equivalents.
1.2. The effects of the other items stated in the cash flow statement and the changes in foreign currency exchange rates on cash and cash equivalents: “Other” item amounting to TRY (571.965) Thousand in “Operating profit before changes in operating assets and liabilities” consists of fees and commission paid, operating lease expenses, repairment and maintenance expenses, advertisement expenses and other operating expenses.(December 31, 2010: TRY (258.923) Thousand “Other Income” amounting to TRY 90.226 Thousand consists of gains on derivative financial transactions, foreign exchange gains and other operating income (December 31, 2010: TRY 102.519 Thousand). “Net increase/decrease in other assets” amounting to TRY 12.386 Thousand in “Changes in operating assets and liabilities” consists of changes in sundry debtors, other assets and intangible asset purchases. (December 31, 2010: TRY (10.185) Thousand) “Net increase/ decrease in other liabilities” with a total amount of TRY 377.577 Thousand consists of changes in sundry creditors and other liabilities. (December 31, 2010: TRY 164.374 Thousand). “Other items” amounting to TRY 4.244 Thousand (31 December 2010: TRY 3.467 Thousand) in “Net cash provided from investing activities” consists of cash paid for purchases of intangible assets. The effect of changes in foreign exchange rates on cash and cash equivalents as of December 31, 2011 is approximately TRY 77.996 Thousand (December 31, 2010: TRY 8.397 Thousand).
1.3. Cash and Cash Equivalents at the Beginning of the Period:
Current Period Prior Period Cash 420.068 268.088 Cash in TRY/Foreign Currency 233.456 131.325 Banks-Demand Deposit 186.612 136.763 Cash Equivalents - 110.255 Banks-Time Deposit - 10.255 Murabaha Transactions Classified as Loans - 100.000 Total Cash and Cash Equivalents 420.068 378.343
1.4. Cash and Cash Equivalents at the End of the Period:
Current Period Prior Period Cash 599.923 420.068 Cash in TRY/Foreign Currency 250.331 233.456 Banks-Demand Deposit 349.592 186.612 Cash Equivalents 9.773 - Banks-Time Deposit 9.773 - Murabaha Transactions Classified as Loans - - Total Cash and Cash Equivalents 609.696 420.068
163 Unconsolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
VII. Explanations on the Risk Group of the Bank
1. Transaction Volume of the Risk Group of the Bank, Outstanding Loan and Deposit Balances and Current Income and Expense Amounts
1.1. Current Period:
Direct and Indirect Other Entities Included in Risk Group of the Bank Subsidiaries and Associates Shareholders the Risk Group Cash Non-Cash Cash Non-Cash Cash Non-Cash Loans and Other Receivables (*) Balance at Beginning of Period 77.494 8.921 - - 172.548 42.782 Balance at End of Period 107.795 16.806 - - 206.072 164.645 Profit Share and Commission 15.438 - - - 35.797 - Income
(*) The risk group balance includes TRY 3.411 Thousand finance lease receivables (December 31, 2010: TRY 153 Thousand).
1.2. Prior Period:
Direct and Indirect Other Entities Included in Risk Group of the Bank Subsidiaries and Associates Shareholders the Risk Group Cash Non-Cash Cash Non-Cash Cash Non-Cash Loans and Other Receivables (*) Balance at Beginning of Period 52.357 9.225 - - 220.914 68.491 Balance at End of Period 77.494 8.921 - - 172.548 42.782 Profit Share and Commission 15.164 - - - 23.870 - Income
(*) The risk group balance includes TRY 153 Thousand finance lease receivables (December 31, 2009: TRY 237 Thousand).
1.3. Risk Group Deposits Balances of the Bank:
Direct and Indirect Other Entities Included in the Risk Group of the Bank Subsidiaries and Associates Shareholders Risk Group Current and Profit Sharing Current Period Current Period Current Period Accounts Balance at Beginning of Period 104.089 - 109.357 Balance at End of Period 113.796 - 127.638 Profit Share Expense 7.585 - 4.950
1.4. Information on Forward and Option Agreements and Other Similar Agreements with Related Parties: None.
1.5. Information on Compensation of Key Management Personnel: During the current period, the total amount of remuneration and benefits provided to the key management personnel of the Bank is TRY 10.297 Thousand (December 31, 2010: TRY 8.642 Thousand). Besides remuneration, the key management personnel also receive some further in kind rights.
164 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES AND DISCLOSURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
VIII. Explanations on the Bank’s Domestic, Foreign, Off-shore Branches or Investments in Associates and Foreign Representative Offices
1. Explanations on the Bank’s Domestic, Foreign, Off-shore Branches or Investments in Associates and Foreign Representative Offices
Number Employees Domestic Branches 200 4.542 Country Rep-Offices Abroad (*) - - -
Total Assets Capital Branches Abroad - - - - -
Off-shore Branches - - - - -
(*) The Bank has received all necessary approvals from BRSA to open a representative office in Mumbai, India and a branch in Arbil, Iraq. As of the reporting date, opening representative office and branch is still in progress.
2. Explanations on Branch and Agency Openings or Closings of the Bank: The Bank has opened 25 new branches in the period of January 1 - December 31, 2011.
SECTION SIX: OTHER EXPLANATIONS
I. Other Disclosures:
1. Subsequent Events: Bank Asya's Board members Mr. Salih SARIGÜL and Mr. Ahmet ÇELİK have announced their resignations, effective on January 26th, 2012 and Mr. Tacettin NEGIS has announced his resignation, effective on February 2nd, 2012 then, retrospectively Mr. Ali ÇELİK, Mr. Faruk İLK and Mr. Mustafa Talat KATIRCIOĞLU were appointed as the board members to fill their vacancies.
SECTION SEVEN: INDEPENDENT AUDITOR’S REPORT
I. Explanations on the Independent Auditor’s Report The financial statements of the Bank for the year January 1 – December 31, 2011 have been audited by DRT Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (Member of Deloitte Touche Tohmatsu Limited). The independent auditor’s report is presented at the beginning of the financial statements and related notes.
II. Other Footnotes and Explanations Prepared by the Independent Auditors There is no significant matter or disclosure which may be in connection with the Bank’s operations but not explained in the above sections.
165
Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş. AND ITS FINANCIAL SUBSIDIARIES
INDEPENDENT AUDITORS’ REPORT, CONSOLIDATED FINANCIAL STATEMENTS AND NOTES FOR THE YEAR ENDED DECEMBER 31, 2011
(Translated into English from the Original Turkish Report)
167 Consolidated Financial Statements and Accompanying Notes
168 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş. AND ITS FINANCIAL SUBSIDIARIES
INDEPENDENT AUDITORS’ REPORT FOR THE YEAR JANUARY 1, 2011 - DECEMBER 31, 2011
To the Board of Directors of Asya Katılım Bankası A.Ş. İstanbul
We have audited the accompanying balance sheet of Asya Katılım Bankası A.Ş. (the “Bank”) and its financial subsidiaries (“the Group”) as at December 31, 2011 and the related consolidated statements of income, cash flows and changes in shareholders’ equity for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements: The Board of Directors of the Bank is responsible for the preparation and fair presentation of the financial statements in accordance with the regulation on “Procedures and Principles Regarding Banks’ Accounting Practices And Maintaining Documents” published in the Official Gazette dated November 1, 2006 and numbered 26333 and Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”) and other regulations, circulars, communiqués and pronouncements in respect of accounting and financial reporting made by Banking Regulation and Supervision Agency (“BRSA”). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the regulation on “Licensing and Operations of Audit Firms in Banking” International Standards published in the Official Gazette No: 26333 on November 1, 2006 and the International Standards on Auditing. We planned and performed our audit to obtain reasonable assurance whether the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the consideration of the effectiveness of internal control and appropriateness of accounting policies applied relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Independent Auditors’ Opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Asya Katılım Bankası A.Ş. as at December 31, 2011 and the results of its operations and its cash flows for the year then ended in accordance with the prevailing accounting principles and standards set out as per Article 37 of the Banking Act No: 5411 and other regulations, circulars and communiqués in respect of accounting and financial reporting and pronouncements made by Banking Regulation and Supervision Agency (“BRSA”).
Additional paragraph for the English translation: The effect of the differences between the accounting principles summarized in Section 3 and the accounting principles generally accepted in countries in which the accompanying financial statements are to be distributed and International Financial Reporting Standards (“IFRS”) have not been quantified and reflected in the accompanying financial statements. The accounting principles used in the preparation of the accompanying financial statements differ materially from IFRS. Accordingly, the accompanying financial statements are not intended to present the Bank’s financial position and results of its operations in accordance with accounting principles generally accepted in such countries of users of the financial statements and IFRS
DRT BAĞIMSIZ DENETİM VE SERBEST MUHASEBECİ MALİ MÜŞAVİRLİK A.Ş. Member of DELOITTE TOUCHE TOHMATSU LIMITED
Hüseyin GÜRER Partner İstanbul, April 5, 2012
169 Consolidated Financial Statements and Accompanying Notes
THE CONSOLIDATED FINANCIAL REPORT OF ASYA KATILIM BANKASI A.Ş. FOR THE YEAR ENDED DECEMBER 31, 2011
Address of the Headquarter of the Bank : Saray Mahallesi, Dr. Adnan Büyükdeniz Caddesi No:10 34768 Ümraniye/İSTANBUL Phone and Fax Numbers of the Bank : 0 216 633 50 00 / 0 216 633 69 89 Website of the Bank : www.bankasya.com.tr E-Mail : [email protected]
The consolidated financial report designed by the Banking Regulation and Supervision Agency in line with Communiqué on “Financial Statements to be Publicly Announced and the Related Policies and Disclosures” consists of the sections listed below:
• GENERAL INFORMATION ABOUT THE PARENT BANK • CONSOLIDATED FINANCIAL STATEMENTS OF THE PARENT BANK • EXPLANATIONS ON THE CORRESPONDING ACCOUNTING POLICIES APPLIED IN THE RELATED PERIOD • INFORMATION ON CONSOLIDATED FINANCIAL STRUCTURE OF THE GROUP • EXPLANATORY DISCLOSURES AND FOOTNOTES ON CONSOLIDATED FINANCIAL STATEMENTS • OTHER EXPLANATIONS AND DISCLOSURES • INDEPENDENT AUDITORS’ REPORT
The subsidiaries and associates consolidated within the framework of the reporting package are as follows:
Subsidiaries Associates (1) Işık Sigorta A.Ş. Tamweel Africa Holding S.A. (2) Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. - (3) Asya Emeklilik ve Hayat A.Ş. - (4) Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti. -
The consolidated financial statements and the explanatory footnotes and disclosures, unless otherwise indicated, are prepared in Thousands of the Turkish Lira, in accordance with the Communiqué on Banks’ Accounting Practice and Maintaining Documents, Turkish Accounting Standards, Turkish Financial Reporting Standards, related communiqués and the Banks’ records, have been independently audited and presented as attached.
Behçet AKYAR Abdullah ÇELİK Ahmet BEYAZ Kamil YILMAZ Chairman of the Board Member of the Board of Assistant General Manager Manager in Charge of of Directors Directors and General Responsible of Financial Financial Reporting Manager Reporting
Dr. Ercüment GÜLER Mehmet URUÇ Member of the Board of Member of the Board of Directors and Member of the Directors and Member of the Audit Committee Audit Committee
Responsible personnel for the questions that can be raised on the financial statements: Name-Surname/Title: Merve Yasemin GÜNEŞ / Assistant Manager in Charge of Budgeting and Financial Controlling Telephone Number : 0 216 633 54 82 Fax Number : 0 216 633 69 89
170 Bank Asya 2011 Annual Report
SECTION ONE: GENERAL INFORMATION I. History of the Bank Including Its Incorporation Date, Initial Status and Amendments to the Initial Status 172 II. Shareholder Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management and Internal Audit of the Bank, Changes in Shareholder Structure During the Current Period, if any and Information on the Bank’s Risk Group 173 III. Explanations Regarding the Shares of the Bank Owned by and Areas of Responsibility of the Chairman and the Members of Board of Directors, Audit Committee Members, Chief Executive Officer, Executive Vice Presidents 173 IV. Individuals and Institutions That Have Qualified Shares in the Bank 174 V. Summary Information on the Bank’s Services and Activity Areas 174
SECTION TWO: THE CONSOLIDATED FINANCIAL STATEMENTS I. Consolidated Balance Sheet 176-177 II. Consolidated Statement of Off-Balance Sheet Contingencies and Commitments 178 III. Consolidated Statement of Income 179 IV. Consolidated Statement of Income and Expense Accounted under Equity 180 V. Consolidated Statement of Changes in Shareholders’ Equity 181 VI. Consolidated Statement of Cash Flows 182 VII. Consolidated Statement of Profit Distribution 183
SECTION THREE: ACCOUNTING PRINCIPLES I. Explanations on Basis of Presentation 184 II. Explanations on Strategy for Use of Financial Instruments and Foreign Currency Transactions 184 III. Information about the Parent Bank and its Consolidated Subsidiaries 184 IV. Explanations on Forward and Option Contracts and Derivative Instruments 185 V. Explanations on Profit Share Income and Expenses 185 VI. Explanations on Fees and Commission Income and Expenses 185 VII. Explanations on Financial Assets 185 VIII. Explanations on Impairment of Financial Assets 187 IX. Explanations on Offsetting Financial Assets and Liabilities 187 X. Explanations on Sales and Repurchase Agreements and Lending of Securities 187 XI. Explanations on Assets Held for Sale, Discontinued Operations and Liabilities Related to Those Assets 187 XII. Explanations on Goodwill and Other Intangible Assets 188 XIII. Explanations on Tangible Assets 188 XIV. Explanations on Leasing Transactions 188 XV. Explanations on Provisions and Contingent Liabilities 189 XVI. Explanations on Liabilities for Employee Benefits 189 XVII. Explanations on Taxation 189 XVIII. Additional Disclosures on Borrowing 190 XIX. Explanations on Issuance of Share Certificates 190 XX. Explanations on Avalized Drafts and Acceptances 190 XXI. Explanations on Government Incentives 190 XXII. Explanations on Segment Reporting 190 XXIII. Explanations on Other Matters 191 SECTION FOUR: INFORMATION ON THE CONSOLIDATED FINANCIAL STRUCTURE I. Explanations Related to the Consolidated Capital Adequacy Standard Ratio 192 II. Explanations Related to the Consolidated Credit Risk 195 III. Explanations Related to the Consolidated Market Risk 197 IV. Explanations Related to the Consolidated Operational Risk 198 V. Explanations Related to the Consolidated Currency Risk 198 VI. Explanations Related to the Consolidated Interest Rate Risk 200 VII. Explanations Related to the Consolidated Liquidity Risk 200 VIII. Explanations on Presentation of Financial Assets and Liabilities at Fair Value 203 IX. Explanations on Transactions Carried out on Behalf of Other Parties and Fiduciary Assets 203 SECTION FIVE: EXPLANATIONS AND DISCLOSURES ON THE CONSOLIDATED FINANCIAL STATEMENTS I. Explanations and Disclosures Related to the Consolidated Assets 204 II. Explanations and Disclosures Related to the Consolidated Liabilities 221 III. Explanations and Disclosures Related to the Consolidated Off-Balance Sheet Contingencies and Commitments 227 IV. Explanations and Disclosures Related to the Consolidated Income Statement 231 V. Explanations and Disclosures Related to the Statements of Changes in Shareholders’ Equity 236 VI. Explanations and Disclosures Related to the Statements of Cash Flows 237 VII. Explanations on the Risk Group of the Parent Bank 238 VIII. Explanations on the Bank’s Domestic, Foreign, Off-shore Branches or Investments in Associates and Foreign Representative Offices 239 SECTION SIX: OTHER EXPLANATIONS I. Other Explanations on the Operations of the Parent Bank 239 SECTION SEVEN: INDEPENDENT AUDITORS’ REPORT I. Explanations on the Independent Auditors’ Report 239 II. Other Footnotes and Explanations Prepared by the Independent Auditors 239
171 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SECTION ONE: GENERAL INFORMATION
I. History of the Parent Bank Including Its Incorporation Date, Initial Legal Status and Amendments to the Initial Legal Status Incorporation of the Parent Bank is permitted with the decision of the Council of Ministers No: 96/8041 on April 11, 1996 as published in the Official Gazette dated April 25, 1996. The Parent Bank was registered on September 20, 1996 and “the Articles of Association” was published in the Trade Registry Gazette on September 25, 1996. The decision regarding the change in the title of the Bank was settled in the Extraordinary General Board of Directors’ meeting dated December 22, 2005 and the title was changed from Asya Finans Kurumu A.Ş. into Asya Katılım Bankası A.Ş. and it was published in the Trade Registry Gazette on December 26, 2005.
Information on Consolidated Subsidiaries:
Işık Sigorta A.Ş. Işık Sigorta A.Ş. (“the Company”) was established in 1995 in İstanbul and operates in various insurance and reinsurance sectors excluding life insurance. The Company is registered in Turkey, and it’s headquarter is located in Saray Mah. Dr. Adnan Büyükdeniz Cad. No: 10 34768 Ümraniye, İstanbul. The Company currently has 169 personnel as of December 31, 2011. Işık Sigorta A.Ş. currently has 4 regional management offices, 2 regional representation offices and 1.172 (including the Bank branches) agencies.
Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. Based on the announcement of the Capital Market Board dated August 13, 2009, it has been permitted transformation of the subsidiary of the Parent Bank “Asyafin Turizm İnşaat San. A.Ş.” into “Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.” with the decision dated March 27, 2009 and numbered 7/194. The transformation and registration have been completed as of September 30, 2009 and “the Articles of Association’’ has been published in the Trade Registry Gazette on October 8, 2009. The company’s main operations are development of residential and saleable real estate and generation of rental revenue from its own real estate portfolio. The company is registered in Turkey, and its headquarter is located in Saray Mah. Dr. Adnan Büyükdeniz Cad. No: 10 34768 Ümraniye, İstanbul. The company currently has 18 personnel as of December 31, 2011.
Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti. Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti. was established in 1997 in İstanbul and shows a variety of insurance and reinsurance activities. As of reporting date, the Company has no operation. The Company is registered in Turkey, and it’s headquarter is located in Saray Mah. Dr. Adnan Büyükdeniz Cad. No: 10 34768 Ümraniye, İstanbul.
Asya Emeklilik ve Hayat A.Ş. Asya Emeklilik ve Hayat A.Ş. was established in 2011 and plans to operate private pension, life and casualty insurance areas. As of reporting date, the Company has not started its operations yet. The Company is registered in Turkey, and its headquarter is located in Saray Mah. Dr. Adnan Büyükdeniz Cad. No: 10 34768 Ümraniye, İstanbul. The company currently has 24 personnel as of December 31, 2011.
Information on Consolidated Associate:
Tamweel Africa Holding S.A. Tamweel Africa Holding S.A. (the “Holding”) was established in June 9, 2009. 60% of it belongs to ICD, 40% of it belongs to Asya Katılım Bankası A.Ş. The Holding is registered in Senegal, and its headquarter is located in 66 rue Carnot, 5ème Etage Résidence Diouma Léna, Dakar. The Holding currently has 10 personnel as of December 31, 2011 and 4 banks operating in Senegal, Guinea, Niger and Mauritania.
172 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
II. Shareholder Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management and Internal Audit of the Parent Bank, Changes in Shareholder Structure During the Current Period, if any and Information on the Bank’s Risk Group The Parent Bank has no shareholders having more than 10% shareholding or direct or indirect, joint or individual control over the management of the Parent Bank. The Parent Bank is not included in any group.
III. Explanations Regarding the Shares of the Parent Bank Owned by and Areas of Responsibility of the Chairman and the Members of Board of Directors, Audit Committee Members, Chief Executive Officer, Executive Vice Presidents Ownership Title Name Area of Responsibility Percentage Chairman of the Board of Behçet AKYAR Chairman of the Board of Directors 0,0003 Directors Member of the Board of Salih SARIGÜL (*) Vice Chairman of the Board of Directors 0,2056 Directors Ahmet ÇELİK (*) Member of the Board of Directors 0,4800 Tacettin NEGİŞ (**) (***) Member of the Board of Directors - Member of the Board of Directors and the Audit İsmail Erol İŞBİLEN (***)(*******) - Committees Member of the Board of Directors and the Audit Hülagü ÖZCAN (***) (*******) - Committees General Manager Abdullah ÇELİK Member of the Board and General Manager - Corporate/Commercial Loans, Small Banking, Top Assistant General Management Office Headquarters, Business and - Managers Product Development Coordination (****) Ali TUĞLU Information Technologies - Ali Fuat TAŞKESENLİOĞLU (*****) Corporate Credit Allocation II, - Credit and Risk Monitoring, Construction and Real Erdal ERDEM (*****) Estate Fahrettin SOYLU Banking Operations - Retail Sales Management, Retail Product Management, Card Payment Systems Marketing Dr. Ercüment GÜLER (*******) - Management, Administrative Affairs, Alternative Distribution Channels, Resource Development Budgeting & Reporting, Accounting & Bank Affiliates, Ahmet BEYAZ - Purchasing, Corporate Communications Zafer ERTAN Law, Credit and Risk Monitoring - Corporate/Consumer Credit Allocation I, Project Ahmet AKAR - Financing Treasury, Financial Institutions, Investor Relations, Feyzullah EĞRİBOYUN 0,0004 Human Resources and Education Auditors Ali AKBULUT (******) Auditor 0,0002 Atıf BİLGİN Auditor 0,2411 İrfan HACIOSMANOĞLU Auditor 0,7093
(*) Bank Asya's Board members Mr. Salih SARIGÜL and Mr. Ahmet ÇELİK have announced their resignations as of January 26, 2012 and Mr. Ali ÇELİK and Mr. Faruk İLK were appointed as the board members to fill their vacancies. (**) Bank Asya's Board member Mr. Tacettin NEGİŞ has announced his resignation as of February 2, 2012 and Mr. Mustafa Talat KATIRCIOĞLU was appointed as the board members to fill his vacancy. (***) Pay rate is not presented due to being below 0,001%. (****) Related departments operate under control of the Headquarter. (*****) Bank Asya's Executive Vice Presidents Mr. Ali Fuat TAŞKESENLİOĞLU and Mr. Erdal ERDEM have resigned as of January 6, 2012. (******)Bank Asya's Auditor Mr. Ali AKBULUT has announced his resignation. Mr. Mehmet GÖZÜTOK was appointed as the auditor. (*******) Bank Asya's Board members Mr. Ismail Erol ISBILEN and Mr. Hülagü ÖZCAN have announced their resignations, effective on March 12th 2012. Mr. Dr. Ercument GULER (Executive Vice President) and Mr. Mehmet URUÇ (Chief Legal Counsel) were appointed as the board members to fill their vacancies.
173 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
IV. Individuals and Institutions That Have Qualified Shares in the Parent Bank The Parent Bank’s capital, amounting to TRY 900.000.000, consists of qualified shares, amounting to TRY 360.000.000 and the holders of the A Group type shares are considered as qualified. The qualified shareholders are listed below.
Name & Surname / Commercial Title Share Amount Share Amount Paid Shares Unpaid Shares ORTADOĞU TEKSTİL TİC. SAN. A.Ş. 39.572 10,99 39.572 - FORUM İNŞAAT DEKORASYON TURİZM SAN. VE TİC. A.Ş. 34.668 9,63 34.668 - ABDULKADİR KONUKOĞLU 20.088 5,58 20.088 - BJ TEKSTİL TİCARET VE SANAYİ A.Ş. 18.000 5,00 18.000 - BİRİM BİRLEŞİK İNŞAATÇILIK MÜMESSİLLİK SAN. VE TİC. A.Ş. 17.783 4,94 17.783 - SERRA TURİZM LTD. ŞTİ. 15.000 4,17 15.000 - OSMAN CAN PEHLİVAN 14.400 4,00 14.400 - NEGİŞ GİYİM İMALAT VE İHRACAT A.Ş. 13.142 3,65 13.142 - HASAN SAYIN 12.723 3,53 12.723 - İBRAHİM SAYIN 12.679 3,52 12.679 - OTHER 161.945 44,99 161.945 - Total 360.000 100,00 360.000 -
V. Summary Information on the Bank’s Services and Activity Areas The Parent Bank operates in accordance with the principles of interest-free banking as a participation bank, by collecting funds through current accounts and profit sharing accounts, and lending such funds through production support, finance lease and profit/loss sharing partnership. The Parent Bank has two ways of collecting funds; current accounts and profit sharing accounts. The Parent Bank classifies current accounts and profit sharing accounts in accordance with their maturities in its accounting system. Profit sharing accounts are categorized into five different maturity groups; up to one month, up to three months (three months included), up to six months (six months included), up to one year and one year (one year included) and more than one year (one month, three months, six months and one year profit share payment). The Parent Bank could determine the participation rates on profit/loss sharing accounts with respect to the maturity group of TRY and foreign currency accounts, seperately under the limitation that the participation rate on loss shall not be less than 50%, for different currency type, amount and maturity groups specifically. The Parent Bank constitutes specific fund pools, allocated to the individually predetermined projects for financing purposes. Profit sharing accounts, which are part of the funds collected for project financing purpose, are distinguished from others with respect to the terms, accounted seperately from the others and it is not allowed to make any transfers from these accounts to any other maturity groups. Specific fund pools are clarified at the end of the financing period. The Parent Bank has no specific fund pools as of December 31, 2011. In addition to the regular banking activities, the Parent Bank operates as an agency on behalf of Işık Sigorta A.Ş. and intervenes stock purchase-sell transactions on behalf of Bizim Menkul Değerler A.Ş. through its branches.
174 Bank Asya 2011 Annual Report
SECTION TWO
THE CONSOLIDATED FINANCIAL STATEMENTS
175 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
CONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD ASSETS Note Audited Audited (31/12/2011) (31/12/2010) TRY FC Total TRY FC Total I. CASH AND BALANCES WITH THE CENTRAL BANK (1) 527.427 1.152.225 1.679.652 1.357.177 727.792 2.084.969 II. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (Net) (2) 7.611 1.250 8.861 4.897 2.581 7.478 2.1 Trading financial assets 7.611 1.250 8.861 4.897 2.581 7.478 2.1.1 Public sector debt securities ------2.1.2 Share certificates 7.611 - 7.611 4.897 - 4.897 2.1.3 Derivative financial assets held for trading - 1.250 1.250 - 2.581 2.581 2.1.4 Other marketable securities ------2.2 Financial assets at fair value through profit and loss ------2.2.1 Public sector debt securities ------2.2.2 Share certificates ------2.2.3 Loans ------2.2.4 Other marketable securities ------III. BANKS (3) 59.371 343.487 402.858 74.157 150.402 224.559 IV. MONEY MARKET PLACEMENTS ------V. FINANCIAL ASSETS AVAILABLE FOR SALE (Net) (4) 779.763 - 779.763 394.708 - 394.708 5.1 Share certificates 219 - 219 224 - 224 5.2 Public sector debt securities 779.544 - 779.544 394.484 - 394.484 5.3 Other marketable securities ------VI. LOANS AND RECEIVABLES (5) 11.588.089 1.565.682 13.153.771 9.967.521 987.275 10.954.796 6.1 Loans and receivables 11.278.387 1.565.242 12.843.629 9.824.377 986.884 10.811.261 6.1.1 Loans to risk group of the Bank 304.173 6.283 310.456 248.182 1.707 249.889 6.1.2 Public sector debt securities ------6.1.3 Other 10.974.214 1.558.959 12.533.173 9.576.195 985.177 10.561.372 6.2 Non-performing loans 614.033 1.697 615.730 445.673 1.478 447.151 6.3 Specific provisions (-) (304.331) (1.257) (305.588) (302.529) (1.087) (303.616) VII. HELD TO MATURITY INVESTMENTS (Net) (6) 77.053 - 77.053 77.032 - 77.032 VIII. INVESTMENTS IN ASSOCIATES (Net) (7) 107.248 - 107.248 87.147 - 87.147 8.1 Accounted for under equity method 45.900 - 45.900 31.166 - 31.166 8.2 Unconsolidated 61.348 - 61.348 55.981 - 55.981 8.2.1 Financial associates 3.000 - 3.000 2.000 - 2.000 8.2.2 Non-financial associates 58.348 - 58.348 53.981 - 53.981 IX. INVESTMENTS IN SUBSIDIARIES (Net) (8) 84.014 - 84.014 83.964 - 83.964 9.1 Unconsolidated financial subsidiaries ------9.2 Unconsolidated non-financial subsidiaries 84.014 - 84.014 83.964 - 83.964 X. ENTITIES UNDER COMMON CONTROL (Net) (9) ------10.1 Consolidated under equity method ------10.2 Unconsolidated ------10.2.1 Financial subsidiaries ------10.2.2 Non-financial subsidiaries ------XI. FINANCE LEASE RECEIVABLES (10) 277.570 20.181 297.751 81.966 23.505 105.471 11.1 Finance lease receivables 370.569 21.860 392.429 95.514 26.200 121.714 11.2 Operating lease receivables ------11.3 Other ------11.4 Unearned income ( - ) (92.999) (1.679) (94.678) (13.548) (2.695) (16.243) XII. DERIVATIVE FINANCIAL ASSETS FOR HEDGING PURPOSES (11) ------12.1 Fair value hedge ------12.2 Cash flow hedge ------12.3 Hedge of net investment risks in foreign operations ------XIII. TANGIBLE ASSETS (Net) (12) 454.718 - 454.718 354.326 - 354.326 XIV. INTANGIBLE ASSETS (Net) (13) 16.238 - 16.238 14.549 - 14.549 14.1 Goodwill 4.111 - 4.111 4.111 - 4.111 14.2 Other 12.127 - 12.127 10.438 - 10.438 XV. INVESTMENT PROPERTY (Net) (14) 35.641 - 35.641 36.812 - 36.812 XVI. TAX ASSET (15) 21.955 - 21.955 10.754 - 10.754 16.1 Current tax asset ------16.2 Deferred tax asset 21.955 - 21.955 10.754 - 10.754 XVII. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net) (16) 8.724 - 8.724 6.509 - 6.509 17.1 Held for Sale 8.724 - 8.724 6.509 - 6.509 17.2 Discontinued Operations ------XVIII. OTHER ASSETS (17) 217.145 3.103 220.248 215.235 2.686 217.921
TOTAL ASSETS 14.262.567 3.085.928 17.348.495 12.766.754 1.894.241 14.660.995
The accompanying notes are an integral part of these combined financial statements
176 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
CONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD LIABILITIES AND EQUITY Note Audited Audited (31/12/2011) (31/12/2010) TRY FC Total TRY FC Total I. FUND COLLECTED (1) 7.719.000 4.573.921 12.292.921 7.588.685 3.497.810 11.086.495 1.1 Fund from risk group of the Bank 83.251 54.061 137.312 57.701 75.658 133.359 1.2 Other 7.635.749 4.519.860 12.155.609 7.530.984 3.422.152 10.953.136 II. DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING (2) - 11.715 11.715 - 5.397 5.397 III. FUNDS BORROWED (3) 27.357 1.457.830 1.485.187 28.474 622.237 650.711 IV. MONEY MARKET BALANCES 279.207 - 279.207 - - - V. MARKETABLE SECURITIES ISSUED (NET) ------VI. SUNDRY CREDITORS 388.746 3.900 392.646 278.850 4.056 282.906 VII. OTHER LIABILITIES (4) 226.983 62.810 289.793 261.131 14.833 275.964 VIII. FINANCE LEASE PAYABLES (5) ------8.1 Finance lease payables ------8.2 Operating lease payables ------8.3 Other ------8.4 Deferred finance lease expenses (-) ------IX. DERIVATIVE FINANCIAL LIABILITIES FOR HEDGING PURPOSES (6) ------9.1 Fair value hedge ------9.2 Cash flow hedge ------9.3 Hedge of net investment in foreign operations ------X. PROVISIONS (7) 267.047 28.103 295.150 251.820 18.787 270.607 10.1 General loan loss provisions 110.319 20.747 131.066 100.356 16.848 117.204 10.2 Restructuring provisions ------10.3 Reserve for employee benefits 30.262 - 30.262 24.262 - 24.262 10.4 Insurance technical reserves (Net) 99.556 1.473 101.029 90.938 808 91.746 10.5 Other provisions 26.910 5.883 32.793 36.264 1.131 37.395 XI. TAX LIABILITY (8) 55.106 1 55.107 50.360 1 50.361 11.1 Current tax liability 55.098 1 55.099 50.360 1 50.361 11.2 Deferred tax liability 8 - 8 - - - XII. PAYABLES RELATED TO ASSETS HELD FOR SALE (Net) (9) ------12.1 Held for sale ------12.2 Discontinued operations ------XIII. SUBORDINATED LOANS (10) ------XIV. SHAREHOLDERS' EQUITY (11) 2.246.769 - 2.246.769 2.038.554 - 2.038.554 14.1 Paid-in capital 900.000 - 900.000 900.000 - 900.000 14.2 Capital reserves (6.017) - (6.017) 14.314 - 14.314 14.2.1 Share premium 3.307 - 3.307 3.307 - 3.307 14.2.2 Share cancellation profits ------14.2.3 Marketable securities revaluation reserve (13.599) - (13.599) 6.732 - 6.732 14.2.4 Tangible assets revaluation reserve 4.275 - 4.275 4.275 - 4.275 14.2.5 Intangible assets revaluation reserve ------14.2.6 Investment property revaluation reserve ------Bonus shares obtained from associates, subsidiaries and jointly 14.2.7 ------controlled entities 14.2.8 Hedging funds (Effective portion) ------14.2.9 Value increase on assets held for resale ------14.2.10 Other capital reserves ------14.3 Profit reserves 1.028.676 - 1.028.676 762.457 - 762.457 14.3.1 Legal reserves 66.732 - 66.732 53.679 - 53.679 14.3.2 Status reserves ------14.3.3 Extraordinary reserves 956.412 - 956.412 709.448 - 709.448 14.3.4 Other profit reserves 5.532 - 5.532 (670) - (670) 14.4 Profit or loss 214.334 - 214.334 252.534 - 252.534 14.4.1 Prior year income / (losses) (7.483) - (7.483) (9.561) - (9.561) 14.4.2 Current year income / (losses) 221.817 - 221.817 262.095 - 262.095 14.5 Minority shares (12) 109.776 - 109.776 109.249 - 109.249
TOTAL LIABILITIES AND EQUITY 11.210.215 6.138.280 17.348.495 10.497.874 4.163.121 14.660.995
The accompanying notes are an integral part of these combined financial statements
177 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
STATEMENT OF OFF-BALANCE SHEET CONTINGENGIES AND COMMITMENTS
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Note Audited Audited (31/12/2011) (31/12/2010) TP YP Toplam TP YP Toplam OFF BALANCE SHEET COMMITMENTS AND CONTINGENCIES A. 7.698.020 7.183.246 14.881.266 7.181.426 5.737.843 12.919.269 (I+II+III) I. GUARANTEES (1), (2) 4.047.507 5.301.252 9.348.759 4.226.595 5.000.288 9.226.883 1.1. Letters of guarantees 3.996.113 3.560.462 7.556.575 4.195.799 3.742.856 7.938.655 1.1.1. Guarantees subject to State Tender Law ------1.1.2. Guarantees given for foreign trade operations ------1.1.3. Other letters of guarantee 3.996.113 3.560.462 7.556.575 4.195.799 3.742.856 7.938.655 1.2. Bank loans 27.386 296.584 323.970 23.000 131.318 154.318 1.2.1. Import letter of acceptances 27.386 296.584 323.970 23.000 131.318 154.318 1.2.2. Other bank acceptances ------1.3. Letter of credits 2.898 1.331.621 1.334.519 642 996.720 997.362 1.3.1. Documentary letter of credits ------1.3.2. Other letter of credits 2.898 1.331.621 1.334.519 642 996.720 997.362 1.4. Prefinancing given as guarantee ------1.5. Endorsements ------1.5.1. Endorsements to the Central Bank of Turkey ------1.5.2. Other endorsements ------1.6. Other guarantees 21.110 112.585 133.695 7.154 129.394 136.548 1.7. Other collaterals ------II. COMMITMENTS (1) 3.628.894 587.140 4.216.034 2.686.588 79.243 2.765.831 2.1. Irrevocable commitments 3.628.894 587.140 4.216.034 2.686.588 79.243 2.765.831 2.1.1. Forward asset purchase commitments 498.695 587.140 1.085.835 36.324 79.243 115.567 2.1.2. Share capital commitment to associates and subsidiaries 10.798 - 10.798 2.000 - 2.000 2.1.3. Loan granting commitments 353.633 - 353.633 341.648 - 341.648 2.1.4. Securities underwriting commitments ------2.1.5. Commitments for reserve deposit requirements ------2.1.6. Payment commitment for checks 650.723 - 650.723 580.319 - 580.319 2.1.7. Tax and fund liabilities from export commitments 1.883 - 1.883 1.880 - 1.880 2.1.8. Commitments for credit card expenditure limits 2.066.016 - 2.066.016 1.661.296 - 1.661.296 Commitments for promotions related with credit cards and banking 2.1.9. 7.236 - 7.236 7.257 - 7.257 activities 2.1.10. Receivables from short sale commitments ------2.1.11. Payables for short sale commitments ------2.1.12. Other irrevocable commitments 39.910 - 39.910 55.864 - 55.864 2.2. Revocable commitments ------2.2.1. Revocable loan granting commitments ------2.2.2. Other revocable commitments ------III. DERIVATIVE FINANCIAL INSTRUMENTS (4) 21.619 1.294.854 1.316.473 268.243 658.312 926.555 3.1. Derivative financial instruments for hedging purposes ------3.1.1. Fair value hedge ------3.1.2. Cash flow hedge ------3.1.3. Hedge of net investment in foreign operations ------3.2. Held for trading transactions 21.619 1.294.854 1.316.473 268.243 658.312 926.555 3.2.1. Forward foreign currency buy/sell transactions ------3.2.1.1. Forward foreign currency transactions-buy ------3.2.1.2. Forward foreign currency transactions-sell ------3.2.2. Other Forward buy/sell transactions 21.619 1.294.854 1.316.473 268.243 658.312 926.555 3.3. Other ------B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) 144.252.279 103.667.485 247.919.764 114.534.965 74.648.884 189.183.849 IV. ITEMS HELD IN CUSTODY 996.242 821.158 1.817.400 737.083 373.825 1.110.908 4.1. Assets under management ------4.2. Investment securities held in custody 2.885 - 2.885 2.885 - 2.885 4.3. Checks received for collection 736.005 316.160 1.052.165 537.081 193.630 730.711 4.4. Commercial notes received for collection 257.343 20.756 278.099 197.111 15.177 212.288 4.5. Other assets received for collection - 126.829 126.829 - 40.842 40.842 4.6. Assets received for public offering ------4.7. Other items under custody 5 - 5 4 - 4 4.8. Custodians 4 357.413 357.417 2 124.176 124.178 V. PLEDGED ITEMS 143.256.037 102.846.327 246.102.364 113.797.882 74.275.059 188.072.941 5.1. Marketable securities 820.957 370.522 1.191.479 558.289 300.630 858.919 5.2. Guarantee notes 49.893.921 38.782.884 88.676.805 38.978.316 27.921.735 66.900.051 5.3. Commodity 2.643.502 759.906 3.403.408 2.124.763 553.137 2.677.900 5.4. Warranty ------5.5. Properties 18.800.856 2.744.840 21.545.696 15.363.750 1.260.824 16.624.574 5.6. Other pledged items 71.096.801 60.188.175 131.284.976 56.772.764 44.238.733 101.011.497 5.7. Pledged items-depository ------VI. ACCEPTED INDEPENDENT GUARANTEES AND WARRANTIES ------
TOTAL OFF BALANCE SHEET ACCOUNTS (A+B) 151.950.299 110.850.731 262.801.030 121.716.391 80.386.727 202.103.118
The accompanying notes are an integral part of these combined financial statements
178 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
CONSOLIDATED STATEMENT OF INCOME
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD STATEMENT OF INCOME Note Audited Audited (01/01/2011-31/12/2011) (01/01/2010-31/12/2010)
I. PROFIT SHARE INCOME (1) 1.280.858 1.209.222 1.1 Profit share on loans 1.201.460 1.126.940 1.2 Profit share on reserve deposits - 13.364 1.3 Profit share on banks 4.548 24.640 1.4 Profit share on money market placements - - 1.5 Profit share on marketable securities portfolio 58.116 30.884 1.5.1 Held-for-trading financial assets - - 1.5.2 Financial assets at fair value through profit and loss - - 1.5.3 Available-for-sale financial assets 49.234 21.050 1.5.4 Investment-held for maturity 8.882 9.834 1.6 Finance lease income 16.686 13.373 1.7 Other profit share income 48 21 II. PROFIT SHARE EXPENSE (2) (644.482) (608.057) 2.1 Expense on profit sharing accounts (586.782) (591.143) 2.2 Profit share expense on funds borrowed (43.161) (16.736) 2.3 Profit share expense on money market borrowings (14.340) - 2.4 Expense on securities issued - - 2.5 Other profit share expense (199) (178) III. NET PROFIT SHARE INCOME (I - II) 636.376 601.165 IV. NET FEES AND COMMISSIONS INCOME 241.076 234.907 4.1 Fees and commisions received 320.699 304.371 4.1.1 Non-cash loans 133.643 151.840 4.1.2 Other (12) 187.056 152.531 4.2 Fees and commisions paid (79.623) (69.464) 4.2.1 Non-cash loans (12) (10) 4.2.2 Other (12) (79.611) (69.454) V. DIVIDEND INCOME (3) 131 171 VI. NET TRADING INCOME (4) 39.457 48.127 6.1 Securities trading gains / (losses) (1.334) 3.281 6.2 Profit on derivative financial instruments gains / (losses) 64.210 30.508 6.3 Foreign exchange gains / (losses) (23.419) 14.338 VII. OTHER OPERATING INCOME (5) 230.837 221.097 VIII. NET OPERATING INCOME (III+IV+V+VI+VII) 1.147.877 1.105.467 IX. PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-) (6) (228.198) (167.553) X. OTHER OPERATING EXPENSES (-) (7) (646.653) (610.874) XI. NET OPERATING INCOME/(LOSS) (VIII-IX-X) 273.026 327.040 XII. AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER - - XIII. GAIN / (LOSS) ON EQUITY METHOD 3.632 1.211 XIV. GAIN / (LOSS) ON NET MONETARY POSITION - - XV. PROFIT/(LOSS) FROM CONTINUED OPERATIONS BEFORE TAXES (XI+…+XIV) (8) 276.658 328.251 XVI. TAX PROVISION FOR CONTINUED OPERATIONS (±) (9) (54.515) (65.126) 16.1 Provision for current income taxes (60.625) (70.887) 16.2 Provision for deferred taxes 6.110 5.761 XVII. NET PROFIT/(LOSS) FROM CONTINUED OPERATIONS (XV±XVI) (10) 222.143 263.125 XVIII. INCOME ON DISCONTINUED OPERATIONS - - 18.1 Income on assets held for sale - - 18.2 Income on sale of associates, subsidiaries and jointly controlled entities (Joint Vent.) - - 18.3 Income on other discontinued operations - - XIX. LOSS FROM DISCONTINUED OPERATIONS (-) - - 19.1 Loss from assets held for sale - - 19.2 Loss on sale of associates, subsidiaries and jointly controlled entities (Joint vent.) - - 19.3 Loss from other discontinued operations - - XX. PROFIT / (LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII-XIX) - - XXI. TAX PROVISION FOR DISCONTINUED OPERATIONS (±) - - 21.1 Provision for current income taxes - - 21.2 Provision for deferred taxes - - XXII. NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI) - - XXIII. NET PROFIT/LOSS (XVII+XXII) (11) 222.143 263.125 23.1 Group’s profit/loss 221.817 262.095 23.2 Minority shares 326 1.030 Earnings per share 0,25 0,29
The accompanying notes are an integral part of these combined financial statements
179 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
STATEMENT OF PROFIT AND LOSS ITEMS ACCOUNTED UNDER EQUITY
THOUSAND TURKISH LIRA
CURRENT PERIOD PRIOR PERIOD STATEMENT OF PROFIT AND LOSS ITEMS ACCOUNTED UNDER EQUITY Audited Audited (01/01/2011-31/12/2011)) (01/01/2010-31/12/2010)
I. Additions to marketable securities revaluation differences for available for sale financial assets (25.414) 4.764
II. Tangible assets revaluation differences - -
III. Intangible assets revaluation differences - -
IV. Foreign exchange differences for foreign currency transactions 6.202 (670)
Profit/Loss from derivative financial instruments for cash flow hedge purposes (Effective portion of fair value V. - - differences)
Profit/Loss from derivative financial instruments for hedge of net investment in foreign operations (Effective VI. - - portion of fair value differences)
VII. The effect of corrections of errors and changes in accounting policies - -
VIII. Other profit loss items accounted under equity due to TAS - -
IX. Deferred tax of valuation differences 5.083 (953)
X. Total Net Profit/Loss accounted under equity (I+II+…+IX) (14.129) 3.141
XI. Profit/Loss - -
11.1 Change in fair value of marketable securities (Transfer to Profit/Loss) - -
11.2 Reclassification and transfer of derivatives accounted for cash flow hedge purposes to Income Statement - -
11.3 Transfer of hedge of net investments in foreign operations to Income Statement - -
11.4 Other - -
XII. Total Profit/Loss accounted for the period (X±XI) (14.129) 3.141
The accompanying notes are an integral part of these combined financial statements
180 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER’S EQUITY ------201 157 (670) 2.715 2.715 6.202 3.811 (30.000) (30.000) (20.331) 263.125 222.143 Total Equity Total 2.246.769 1.799.416 1.799.416 2.038.554 2.038.554 ------13 Non- 201 326 2.715 2.715 1.030 Interest 109.776 105.491 105.491 109.249 109.249 controlling controlling ------Non- 144 (670) 6.202 3.811 Interest Excluding (30.000) (30.000) (20.331) controlling controlling 262.095 221.817 Total Equity Total 2.136.993 1.693.925 1.693.925 1.929.305 1.929.305 ------Op. from Assets from Held for Sale Valuation Diff. Diff. Valuation and from Disc. and from ------Funds Hedging ------Subsidiaries Bonus Shares Bonus Shares Obtained from Obtained from ------4.275 4.275 4.275 4.275 4.275 Differences Revaulation Tangible and Tangible Intangible Assets ------2.921 2.921 3.811 6.732 6.732 Reserve Securities (13.599) (20.331) Marketable Revaluation ------Prior 139 (7.483) (9.561) Income / (Expense) (30.000) 291.813 291.813 252.534 Period Net (301.513) (271.513) (260.017) (260.017) ------Net Period Current Current Income / (Expense) 221.817 262.095 262.095 221.817 ------Other (670) (670) (670) 5.532 6.202 Reserve ------Reserve 956.412 453.231 453.231 256.217 256.217 709.448 709.448 246.964 246.964 Extraordinary Extraordinary ------Statutory Reserves
------5 Legal 66.732 38.378 38.378 15.296 15.296 53.679 53.679 13.053 13.053 Reserves
------Share Share Profits Certificate Cancellation ------Share Share 3.307 3.307 3.307 3.307 3.307 Premium
------Inflation Adjustment to Paid-in Capital ------Capital Paid-in 900.000 900.000 900.000 900.000 900.000 Note PRIOR PERIOD Audited (01/01-31/12/2010) Prior Period Balance - 31.12.2009 equity of change in associate’s The effect STATEMENT OF CHANGES SHAREHOLDER'S EQUITY STATEMENT Tangible assets revaluation differences assets revaluation Tangible Corrections according to TAS 8 to TAS according Corrections Capital increase Intangible assets revaluation differences Intangible assets revaluation The effect of corrections of errrors of corrections The effect Cash Bonus shares obtained from associates, subsidiaries and obtained from Bonus shares entities (Joint vent.) jointly controlled The effects of changes in accounting policy The effects Internal sources Foreign exchange differences Foreign New Balance (I+II) Share premium Share The disposal of assets Changes in period cancellation profits Share of assets The reclassification Increase/Decrease related to merger related Increase/Decrease Inflation adjustment to paid-in capital The effect of change in associate’s equity of change in associate’s The effect Marketable securities revaluation differences Marketable securities revaluation Other Capital increase Hedging Funds (Effective Portion) Hedging Funds (Effective Period net income/(loss) distribution Profit Cash Cash-flow hedge Dividends distributed Internal sources Hedge of net investment in foreign operations Hedge of net investment in foreign Transfers to reserves Transfers Share premium Share Tangible assets revaluation differences assets revaluation Tangible Other cancellation profits Share Intangible assets revaluation differences Intangible assets revaluation Closing Balance (III+-…...+XVI+XVII+XVIII) Inflation adjustment to paid-in capital Bonus shares obtained from associates, subsidiaries and obtained from Bonus shares entities (Joint vent.) jointly controlled CURRENT PERIOD Audited (01/01-31/12/2011) Prior Period Balance - 31.12.2010 Other Foreign exchange differences Foreign Changes in period Period net income/(loss) The disposal of assets Increase/Decrease related to merger related Increase/Decrease distribution Profit of assets The reclassification Marketable securities revaluation differences Marketable securities revaluation Dividends distributed Hedging Funds (Effective Portion) Hedging Funds (Effective Transfers to reserves Transfers Cash-flow hedge Other Hedge of net investment in foreign operations Hedge of net investment in foreign Closing Balance (I+II+III+-…...+XVI+XVII+XVIII) I. V. II. XIV. VI. 2.1 14.1 VII. 2.2. 14.2 VIII. III. XV. IX. XVI. X. IV. XVII. XI. V. XVIII. XII. VI. XIX. XX. 12.1 6.1 20.1 12.2 6.2 20.2 XIII. VII. 20.3 XIV. VIII. XV. IX. I. XVI. X. XVII. XI. II. XVIII. XII. III. 18.1 XIII. IV. 18.2 4.1 18.3 4.2
181 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
CONSOLIDATED STATEMENT OF CASH FLOWS
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Note Audited Audited (01/01-31/12/2011) (01/01-31/12/2010) A. CASH FLOWS FROM BANKING OPERATIONS
1.1 Operating profit before changes in operating assets and liabilities 86.774 361.641
1.1.1 Profit share income received 1.196.837 1.129.355 1.1.2 Profit share expense paid (635.818) (607.311) 1.1.3 Dividend received 131 171 1.1.4 Fees and commissions received 332.344 304.371 1.1.5 Other income 190.470 193.093 1.1.6 Collections from previously written off loans 14.509 20.636 1.1.7 Payments to personnel and service suppliers (278.459) (253.214) 1.1.8 Taxes paid (84.318) (90.912) 1.1.9 Others (648.922) (334.548)
1.2 Changes in operating assets and liabilities 395.935 46.203
1.2.1 Net (increase) decrease in financial assets (3.588) 13.358 1.2.2 Net (increase) decrease in financial assets at fair value through profit or loss - - 1.2.3 Net (increase) decrease in due from banks and other financial institutions 536.720 377.821 1.2.4 Net (increase) decrease in loans (2.191.597) (2.857.397) 1.2.5 Net (increase) decrease in other assets 13.094 (7.124) 1.2.6 Net increase (decrease) in bank deposits 101.005 10.926 1.2.7 Net increase (decrease) in other deposits 879.369 1.899.303 1.2.8 Net increase (decrease) in funds borrowed 670.927 445.578 1.2.9 Net increase (decrease) in due payables - - 1.2.10 Net increase (decrease) in other liabilities 390.005 163.738
I. Net cash provided from banking operations 482.709 407.844
B. CASH FLOWS FROM INVESTING ACTIVITIES
II. Net cash provided from investing activities (367.544) (336.591)
2.1 Cash paid for purchase of entities under common control, associates and subsidiaries (I.7-I.8) (10.317) (68.555) 2.2 Cash obtained from sale of entities under common control, associates and subsidiaries (I.7-I.8) - - 2.3 Fixed assets purchases (I.12) (32.924) (48.591) 2.4 Fixed assets sales (I.12) 81.094 84.031 2.5 Cash paid for purchase of financial assets available for sale (400.000) (350.000) 2.6 Cash obtained from sale of financial assets available for sale - 50.000 2.7 Cash paid for purchase of investment securities - (50.000) 2.8 Cash obtained from sale of investment securities - 50.000 2.9 Other (I.13) (5.397) (3.476)
C. CASH FLOWS FROM FINANCING ACTIVITIES
III. Net cash provided from financing activities - (27.285)
3.1 Cash obtained from funds borrowed and securities issued - 2.715 3.2 Cash used for repayment of funds borrowed and securities issued - - 3.3 Capital increase - - 3.4 Dividends paid - (30.000) 3.5 Payments for finance leases - - 3.6 Other - -
IV. Effect of change in foreign exchange rate on cash and cash equivalents 77.979 8.412
V. Net increase in cash and cash equivalents 193.144 52.380
VI. Cash and cash equivalents at the beginning of the year (1) 442.557 390.177
VII. Cash and cash equivalents at the end of the year (1) 635.701 442.557
The accompanying notes are an integral part of these combined financial statements
182 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
CONSOLİDATED PROFIT DISTRIBUTION TABLE
THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Audited Audited (01/01/2011-31/12/2011) (01/01/2010-31/12/2010) I. DISTRIBUTION OF CURRENT PERIOD PROFIT
1.1 CURRENT PERIOD PROFIT - - 1.2 TAXES AND DUES PAYABLE (-) - - 1.2.1 Corporate Tax (Income Tax) - - 1.2.2 Withholding Tax - - 1.2.3 Other taxes and dues - -
A. NET PERIOD PROFIT (1.1-1.2) - -
1.3 PRIOR YEAR'S LOSSES (-) - - 1.4 FIRST LEGAL RESERVES (-) - - 1.5 OTHER STATUTORY RESERVES (-) - -
B. DISTRIBUTABLE NET PERIOD PROFIT [(A-(1.3+1.4+1.5)] - -
1.6 FIRST DIVIDEND TO SHAREHOLDERS (-) 1.6.1 To Owners of Ordinary Shares - - 1.6.2 To Owners of Preferred Stocks - - 1.6.3 To Owners of Preferred Stocks (Preemptive Rights) - - 1.6.4 To Profit Sharing Bonds - - 1.6.5 To Owners of the profit /loss Sharing Certificates - - 1.7 DIVIDEND TO PERSONNEL (-) - - 1.8 DIVIDEND TO BOARD OF DIRECTORS (-) - - 1.9 SECOND DIVIDEND TO SHAREHOLDERS (-) - - 1.9.1 To Owners of Ordinary Shares - - 1.9.2 To Owners of Preferred Stocks - - 1.9.3 To Owners of Preferred Stocks (Preemptive Rights) - - 1.9.4 To Profit Sharing Bonds - - 1.9.5 To Owners of the profit /loss Sharing Certificates - - 1.10 SECOND LEGAL RESERVE (-) - - 1.11 STATUS RESERVES (-) - - 1.12 EXTRAORDINARY RESERVES - - 1.13 OTHER RESERVES - - 1.14 SPECIAL FUNDS - -
II. DISTRIBUTION FROM RESERVES
2.1 DISTRIBUTED RESERVES - - 2.2 SECOND LEGAL RESERVES (-) - - 2.3 SHARE TO SHAREHOLDERS (-) - - 2.3.1 To Owners of Ordinary Shares - - 2.3.2 To Owners of Preferred Stocks - - 2.3.3 To Owners of Preferred Stocks (Preemptive Rights) - - 2.3.4 To Profit Sharing Bonds - - 2.3.5 To Owners of the profit /loss Sharing Certificates - - 2.4 SHARE TO PERSONNEL (-) - - 2.5 SHARE TO BOARD OF DIRECTORS (-) - -
III. EARNINGS PER SHARE
3.1 TO OWNERS OF STOCKS - - 3.2 TO OWNERS OF STOCKS ( % ) - - 3.3 TO OWNERS OF PREFERRED STOCKS - - 3.4 TO OWNERS OF PREFERRED STOCKS ( % ) - -
IV. DIVIDEND PER SHARE - -
4.1 TO OWNERS OF STOCKS - - 4.2 TO OWNERS OF STOCKS ( % ) - - 4.3 TO OWNERS OF PREFERRED STOCKS - - 4.4 TO OWNERS OF PREFERRED STOCKS ( % ) - -
(*) Based on the prevailing regulations in Turkey, profit distribution is not made on the consolidated income.
The accompanying notes are an integral part of these combined financial statements
183 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SECTION THREE: ACCOUNTING PRINCIPLES
I. Explanations on Basis of Presentation
1. Presentation of Financial Statements The Parent Bank prepares its financial statements and notes in accordance with the Communiqué on Banks’ Accounting Practice and Maintaining Documents published in the Official Gazette No: 26333 dated November 1, 2006, Turkish Accounting Standards (“TAS”), Turkish Financial Reporting Standards (“TFRS”), other communiqués, pronouncements and explanations about accounting and financial reporting issued by the Banking Regulation and Supervision Agency (“BRSA”), Turkish Commercial Code and the Tax Legislation. The Parent Bank prepares financial statements by applying accounting policies and basis of accounting in accordance with the Turkish Accounting Standards (“TAS”) and related communiqués, pronouncements and explanations issued by the Banking Regulation and Supervision Agency (“BRSA”). The related accounting policies and basis of accounting are explained below. The prior year financial statements are presented in line with the principles of TAS No:1 “Fundamentals of Preparing and Presenting Financial Statements” published in the Official Gazette on January 16, 2005 with No:25702, and in accordance with Turkish Accounting Standards and Turkish Financial Reporting Standards; and other principles, methods and explanations about accounting and financial reporting issued by the BRSA. Certain reclassifications have been made to the prior year financial statements to comply with the current year presentation. The accompanying financial statements are prepared in accordance with historical cost basis except for financial assets at fair value through profit or loss and financial assets available for sale that are presented on fair value basis.
2. Basis of Accounting The accompanying consolidated financial statements are based on the Group’s legal records. The Group has recorded the adjustments and reclassifications of inflation accounting to its legal books beginning from June 30, 2004 to December 31, 2004 in accordance with Act No: 5024 of the Tax Procedural Code. As of December 31, 2003 the consolidated financial statements are prepared in accordance with the legal books and historical cost principle except for the revaluation of fixed assets and includes adjustments and reclassifications, including restatement for the changes in the general purchasing power of the Turkish Lira in accordance with International Accounting Standard No: 29 “Financial Reporting in Hyperinflationary Economies” (“TAS 29”) before December 31, 2004 for the purpose of fair presentation.
II. Explanations on Strategy for Use of Financial Instruments and Foreign Currency Transactions The Group manages its financial instrument strategies depending on the financing sources. The sources mainly constitute of the current and profit sharing accounts. As of the balance sheet date, the Group’s assets and equity structure are sufficient to cover its liabilities. The Group uses 21% of the funds collected in liquid instruments (December 31, 2010: 23%). The Group does not carry a significant foreign currency position risk due to the existing floating exchange rate regime. The investment decisions are made by taking into consideration of the maturity structure of the balance sheet items. The allocation of asset items are designated, and yield analysis are made based on this designation. In the statutory books of the Group, the transactions recorded in foreign currencies (all other currencies except Turkish Lira) are translated into the Turkish Lira at the exchange rates prevailing at the transaction dates. Monetary asset and liabilities denominated in foreign currencies are translated into the Turkish Lira at the year end exchange rates. Foreign exchange gains or losses arising from the translation of monetary items and foreign currency denominated collections or disbursements are recognized in the income statement.
III. Information on Consolidated Subsidiaries and Associates Asya Katılım Bankası A.Ş. and its subsidiaries Işık Sigorta A.Ş., Tuna Gayrimenkul Yatırım Ortaklığı A.Ş., Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti and Asya Emeklilik ve Hayat A.Ş. are consolidated by line consolidation method in the accompanying consolidated financial statements and its associate Tamweel Africa Holding S.A. is consolidated by using equity method. Entities that are consolidated are assessed based on the communiqué on “Regulations Regarding Banks’ Consolidated Financial Statements” published on Official Gazette numbered 26340 dated November 8, 2006. The Parent Bank and the consolidated subsidiaries and associate are referred to as “Group”. When there are differences between the accounting policies of the subsidiaries and associate with the Parent Bank, the financial statements are adjusted in accordance with the principle of materiality.
184 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti. has consolidated for the first time based on the change of the communiqué on “Regulations Regarding Banks’ Consolidated Financial Statements” published on Official Gazette numbered 27824 dated January 23, 2011. Associate, Tamweel Africa Holding S.A. prepares in accordance with the International Financial Accounting Standards. The Group has used to equity method for the first time in 2010 due to purchase of 40% of Tamweel Africa Holding S.A.’s share. Asya Emeklilik ve Hayat A.Ş. was established in July 01, 2011 and has been consolidated for the first time in September 30, 2011. Based on the announcement of the Capital Market Board dated August 13, 2009, it has been permitted transformation of the subsidiary of the Parent Bank “Asyafin Turizm İnşaat San. A.Ş.” into “Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.” with the decision dated March 27, 2009 and numbered 7/194. The transformation and registration have been completed as of September 30, 2009 and “the Articles of Association” has been published in the Trade Registry Gazette on October 8, 2009.
IV. Explanations on Forward and Option Contracts and Derivative Instruments In determination of fair value of forward and swap transactions, forward rates discounted to the balance sheet date by prevailing rates are compared with the expected discounted forward rates at maturity calculated based on the prevailing profit shares as of the balance sheet date and arising foreign exchange differences are recognized in the income statement. Although some of the derivative transactions provide economic hedging in accordance with TAS 39 “Financial Instruments: Recognition and Measurement” since all necessary conditions for hedge accounting have not been met yet, the Parent Bank classifies these transactions as “held for trading” therefore changes in the fair value of derivative financial instruments are recognized in profit or loss as they arise.
V. Explanations on Profit Share Income and Expenses Profit share income and expenses are recognized in the income statement on an accrual basis. Realized and unrealized profit share accruals of the non-performing loans are reversed and profit share income in connection with these loans is recorded as profit share income only when they are collected.
VI. Explanations on Fees and Commission Income and Expenses Banking service revenues are recognized as income only when they are collected while only the current portion of the prepaid commission income obtained from loans is recorded as income based on the periodicity principle. Fees and commissions for funds borrowed paid to other financial institutions, as part of the transaction costs, are recorded as prepaid expenses and are recognized as expense on the relevant periods.
VII. Explanations on Financial Assets Financial instruments comprise of financial assets, financial liabilities and derivative instruments. Financial assets and financial liabilities are recognized on the Group’s consolidated balance sheet when the Group becomes a party to the contractual provisions of the instrument. Basically, financial assets form majority of the commercial activities and operations of the Group. Financial instruments expose, change or reduce the liquidity and credit risks of the Group’s financial statements. Fair value is the amount for which an asset could be exchanged or a liability settled, between knowledgeable willing parties in an arm’s length transaction. Fair value is best evidenced by a market price, being the amount obtainable from the sale or payable on the acquisition, of a financial instrument in an active market, if one exists. Estimated fair values of financial assets are determined by the Group by using the information about the market and relevant valuation methods. However, interpretation of market information is necessary to determine fair value. Therefore, estimated fair values presented in this report may not be necessarily equivalent of the disposal values of such assets derived from current market conditions. Some carrying values of the financial instruments (which are same with their cost values) are assumed to be equal to their fair values because of their short term nature. The methods and assumptions used in determining the reasonable estimated values of all financial instruments are mentioned below:
Cash, Banks, and Other Financial Institutions: Cash and cash equivalents comprise of cash on hand, demand deposits, and highly liquid short-term investments not bearing risk of significant value change, and that are readily convertible to a known amount of cash. The book value of these financial assets approximate to their fair value.
185 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Financial Assets at Fair Value through Profit and Loss: Marketable securities at fair value through profit or loss are classified in two categories; i) marketable securities classified as trading securities: acquired or incurred principally for the purpose of selling or repurchasing it in the near term in order to benefit from short-term profit opportunities; ii) marketable securities classified as marketable securities at fair value through profit or loss at initial recognition. The Parent Bank uses the above-mentioned classification when permitted, or for the purposes of providing a more appropriate presentation. In this group, trading securities are initially recognized at cost and measured at fair value on the financial statements. Fair value of debt securities traded in an active market is determined based on the quoted prices or current market prices. The difference between initial cost and fair value of financial assets at fair value through profit and loss is reflected to profit share income or diminution in value of marketable securities accounts. Profit share income from financial assets at fair value through profit and loss is reflected in profit share income. As of December 31, 2011, the Group has TRY 8.861 Thousand of derivative financial assets held for trading at fair value through profit or loss (December 31, 2010: TRY 7.478 Thousand).
Held to Maturity Investments: Investments held to maturity include securities with fixed or determinable payments and fixed maturity when there is an intention of holding till maturity and the relevant conditions for fulfillment of such intention, including the funding ability. This portfolio excludes loans and receivables. Subsequent to initial recognition, held to maturity investments are measured at amortized cost by using the effective interest rate less impairment losses, if any. The Group has no financial assets acquired and classified as held to maturity investments that cannot be subject to such classification for two years because of the nonperformance of tainting rules. The profit share income received from held to maturity investments is recorded as profit share income in the income statement. As of December 31, 2011, the Group has TRY 77.053 Thousand of held to maturity investments (December 31, 2010: TRY 77.032 Thousand).
Financial Assets Available for Sale: Financial assets available for sale are initially recognized at cost including the transaction costs. After initial recognition, available for sale securities are measured at fair value and unrealized gains/losses originating from the difference between the amortized cost and the fair value are recorded in “Marketable Securities Value Increase Fund” under equity. At the disposal of available for sale financial assets, value increase/decrease recorded in “Marketable Securities Value Increase Fund” under equity is transferred to the income statement. Equity instruments classified as available for sale are accounted at cost less impairment, if any. As of December 31, 2011, the Group has TRY 779.763 Thousand of financial assets available for sale (December 31, 2010: TRY 394.708 Thousand).
Loans and Receivables: Loans and receivables are recognized at amortized cost. Fees, transaction costs and other similar costs in connection with the guarantees of loans and receivables are not considered as part of the transaction cost and recognized in the income statement. Loans are transferred to the relevant accounts in cash amounts and income accruals are calculated by using the internal rate of return method and the related income is recorded in the profit share income item. Foreign currency and foreign currency indexed loans are evaluated and evaluation differences are accounted under “Foreign Exchange Gains” and/or “Foreign Exchange Losses” in the income statement. The classification and provisioning of doubtful loans/receivables are appropriately accounted for in accordance with the prevailing regulations, and specific provisions allocated are recognized in the income statement for the period. Collections made from such loans are recognized under the “Non-performing loans” (including receivables from the doubtful receivables) account and “Profit share income received from Uncollectible Loans and Other Receivables” account. Released provisions are accounted as a cancellation of such provisions if realized in the current year, and the remaining amounts are recognized in the account of collections from the prior year expenses. In addition to specific loan loss provisions, general loan loss provision are recognized within the framework of the regulation on “Methods and Principles for the Determination of Loans and Other Receivables to be Reserved for and Allocation of Reserves” published in the Official Gazette No. 26333 dated 1 November 2006. Except for specific provisions, the Bank allocates general reserve in accordance with Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”
186 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
VIII. Explanations on Impairment of Financial Assets At each balance sheet date, the Group evaluates the carrying amounts of its financial asset or a group of financial assets to determine whether there is an objective indication that those assets have suffered an impairment loss. If such an indication exists, the Group determines the related impairment. A financial asset or a financial asset group incurs impairment loss only if there is an objective indicator related to the occurrence (loss/ damage event) of one or more than one event (or occurrence) subsequent to initial recognition of that asset; and such loss event causes an impairment loss as a result of the effect on the reliable estimate of the expected future cash flows of the related financial asset and asset group. Any amounts attributable to expected losses arising from any future events is not recognized under no circumstances. Companies that are required to prepare separate financial statements under the statutory requirements in accordance with TAS 27 “Consolidated and Separate Financial Statements” can represent their subsidiaries or associates either at cost or the requirements set out in IAS 39, “Financial Instruments: Recognition and Measurement”. In this case, the Parent Bank chooses to use the first method and presents the subsidiaries, jointly controlled entities and associates at cost less impairment loss, if any.
IX. Explanations on Offsetting Financial Assets and Liabilities Financial assets and liabilities are offset when the Group has a legally enforceable right to set off, and when the Group has the intention of collecting or paying the net amount of related assets and liabilities or when the Group has the right to offset the assets and liabilities simultaneously.
X. Explanations on Sales and Repurchase Agreements and Lending of Securities The Group does not have any repurchase agreements or lending of securities.
XI. Explanations on Assets Held for Sale, Discontinued Operations and Liabilities Related to Those Assets
The principles on accounting, assessment and disposal of assets held for sale are determined based on the Communiqué of “Principles and Procedures on Bank’s Disposal of Precious Metals and Assets Held for Sale” published on November 1, 2006 in the Official Gazette numbered 26333. Although the Parent Bank has assets held for sale in the balance sheet, due to the fact that the Parent Bank does not have a formal plan to dispose of these assets in one year subsequent to their classification date, such assets are continued to be depreciated. For this reason, these assets are classified as tangible assets instead of assets held for sale in the accompanying financial statements. Assets held for sale are measured at the lower of the carrying amount of assets and fair value less any cost incurred for disposal. Assets held for sale are not amortized and presented in the financial statements separately. An asset is classified as held for sale, only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale. Highly saleable condition requires a plan by the management regarding the sale of the asset to be disposed of (or else the group of assets), together with an active program for the determination of buyers as well as for the completion of the plan. Also the asset (or else the group of assets) shall be actively marketed in conformity with its fair value. On the other hand, the sale is expected to be recognized as a completed sale within one year after the classification date; and the necessary transactions and procedures to complete the plan should demonstrate the fact that there is remote possibility of making any significant changes or cancellation of the plan. Various events and conditions may extend the completion period of the disposal more than a year. If such delay arises from any events and conditions beyond the control of the entity and there is sufficient evidence that the entity has an ongoing disposal plan for these assets, such assets (or else group of assets) are continued to be classified as assets held for sale (or else group of assets). As of December 31, 2011, assets held for sale amounts to TRY 8.724 Thousand (December 31, 2010: TRY 6.509 Thousand). A discontinued operation is a division of a bank that is either disposed of or held for sale. Results of discontinued operations are included in the income statement separately. The Group does not have any discontinued operations.
187 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
XII. Explanations on Goodwill and Other Intangible Assets Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognized at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Intangible assets acquired prior to January 1, 2005 are accounted for at restated cost less accumulated depreciation and any impairment loss, and the intangible assets acquired in subsequent periods are accounted for at acquisition cost less accumulated depreciation and any impairment loss if any, for those acquired prior to January 1, 2005. Intangible assets are amortized by using the straight line method considering their useful lives. Amortization method is reviewed at the end of each year periodically. Intangible assets mainly constitute of rights and amortized using the straight line method in 5 years. As of December 31, 2011, goodwill amounts to TRY 4.111 Thousand (December 31, 2010: TRY 4.111 Thousand).
XIII. Explanations on Tangible Assets Prior to January 1, 2005, tangible assets are accounted for at acquisition cost plus any other direct costs incurred to bring the asset for ready to use. Tangible assets are measured at their acquisition cost less accumulated depreciation and impairment loss, if any. Depreciation of assets held less than one year as of the balance sheet date is accounted for proportionately. If the fair value of tangible assets under their carrying value, impairment loss is allocated for exceeding amounts and these amounts are recognized as impairment in the financial statements. Gains or losses resulting from disposals of tangible assets are recognized in the income statement. Maintenance costs of the tangible assets are recognized in the income statement as an expense. There are no pledges, mortgages or other restrictions on tangible assets.
Tangible Asset Useful Life Safety Boxes 5 years Office Equipment 5 years Furniture and Fixtures 5 years Vehicles 5 years Leasehold Improvements 5 years Buildings 50 years
XIV. Explanations on Leasing Transactions
Group as a Lessor: Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the amount of the Group’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases.
188 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Group as a Lessee: Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Assets held under finance leases are recognized as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Group’s general policy on borrowing costs. As of December 31, 2011, the Group, as a lessee, has operating leases for vehicles, general management and branches in addition to its assets through financial lease.
XV. Explanations on Provisions and Contingent Liabilities Provisions are recognized when there is a present obligation, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; a reliable estimate can be made of the amount of the obligation. Contingent liabilities are continuously reviewed in order to determine whether there is any possibility of cash flow with regards to the sources having economic benefit for the Group.
XVI. Explanations on Liabilities for Employee Benefits Under the existing Turkish law and union agreements, severance indemnity payment is required for employees retired or fired except resignations. The severance indemnity pay provision recognized represents the present value of the defined benefit obligation as adjusted for unrecognized gains and losses in accordance with TAS 19 “Employee Benefits”. The defined obligation is determined by independent actuaries. The main actuarial assumptions used in the calculation of severance indemnity pay provision are as follows:
December 31, 2011 (*) December 31, 2010 Discount Rate 9,2% - 11,55% 10% Inflation Rate 4,5% - 8,75% 5,1%
(*) According to employees retirement dates, different rates have been used in the range of rates given in the table above. TRY 2.732 (TRY full amount) salary ceiling, which was effective December 31(December 31, 2010: TRY 2.571 full amount), 2011 was taken into account in the current year calculations. It is assumed that the amount of the salary ceiling will increase each year in line with the inflation rate. The age of retirement is considered as the earliest age possible that an individual can retire and CSO 1980 female/male mortality table is used for the mortality rate.
XVII. Explanations on Taxation Tax expense is comprises of current tax and deferred tax expenses. Current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. According to the Article 32 of the Corporate Tax Law No: 5520, announced in the Official Gazette dated June 21, 2006, the corporate tax rate is 20%. Deferred tax asset or liability is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and are accounted for using the balance sheet method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized and recognized in the income statement. If deferred tax is in connection with the assets directly associated with the equity, it shall be directly associated with shareholders’ equity items.
189 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Taxes payables and prepaid taxes are offset since they are levied by the same taxation authority. Deferred tax assets and liabilities are also offset. The Group has adjusted its statutory financial statements based on inflation accounting as of January 1, 2004 in accordance with Law No: 5024. The revenue earned from real estate investment activities of the Group’s subsidiary (Tuna Gayrimenkul Yatırım Ortaklığı A.Ş.) which has acquired the status of the real estate investment trust, is exempt from Corporate Tax according to Article 5/(1) (d) (4) of the Corporate Tax Law No: 5520.
XVIII. Additional Explanations on Borrowings Borrowings are recognized in accordance with TAS 39 “Financial Instruments: Recognition and Measurement”. No specific hedging technique is applied for borrowings, their accounting and valuation methods excluding some general methods applied for avoiding any liquidity and currency risks. There are no debt securities or convertible bonds issued by the Group.
XIX. Explanations on Issuance of Share Certificates As of December 31, 2011 there are no exported share certificates of the Group.
XX. Explanations on Acceptances Acceptances are realized simultaneously with the payment dates of the customers and they are presented as probable commitments in the off-balance sheet accounts.
XXI. Explanations on Government Incentives As of the balance sheet date, there are no government incentives used by the Group.
XXII. Explanations on Segment Reporting The Parent Bank operates in corporate, commercial and retail banking areas in line with its mission by means of profit/loss sharing methodology
Corporate and Current Period Retail Treasury Undistributed Elimination Total Commercial
Total Assets 2.555.931 10.850.898 1.995.939 2.139.274 (193.547) 17.348.495
Total Liabilities 8.468.562 3.960.065 1.748.752 3.364.663 (193.547) 17.348.495
Net Profit Share Income / (Expense) (*) (289.124) 920.713 4.896 (109) - 636.376 Net Fees and Commissions Income/ 11.929 229.316 (5.648) 5.479 - 241.076 (Expense) Other Operating Income / (Expense) (9.101) (17.078) 1.366 (579.613) - (604.426) Gain from Investments in Associates - - - - 3.632 3.632 Accounted for under Equity Method Profit Before Tax (286.296) 1.132.951 614 (574.243) 3.632 276.658 Tax Provision - - - (54.515) - (54.515) Net Profit for the Period (286.296) 1.132.951 614 (628.758) 3.632 222.143 Minority Share 326 Group Share 221.817
(*) The allocation of retail, corporate and commercial banking segments of the Parent Bank above is the result of differentiation in fund collection and allocation procedures of the participation banks.
190 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Corporate and Prior Period Retail Treasury Undistributed Elimination Total Commercial
Total Assets 1.660.820 9.379.383 2.328.509 1.460.526 (168.243) 14.660.995
Total Liabilities 7.611.786 3.563.058 627.634 3.026.760 (168.243) 14.660.995
Net Profit Share Income / (Expense) (*) (331.567) 880.060 39.115 13.557 - 601.165 Net Fees and Commissions Income/ 3.953 233.281 (1.408) (919) - 234.907 (Expense) Other Operating Income / (Expense) (7.194) (16.476) 3.281 (488.643) - (509.032) Gain from Investments in Associates - - - - 1.211 1.211 Accounted for under Equity Method Profit Before Tax (334.808) 1.096.865 40.988 (476.005) 1.211 328.251 Tax Provision - - - (65.126) - (65.126) Net Profit for the Period (334.808) 1.096.865 40.988 (541.131) 1.211 263.125 Minority Share 1.030 Group Share 262.095
(*) The allocation of retail, corporate and commercial banking segments of the Parent Bank above is the result of differentiation in fund collection and allocation procedures of the participation banks.
XXIII. Explanations on Other Matters There are no explanations on other matters.
191 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.) ------200% 17.875 17.875 17.875 ------150% 62.207 62.207 62.207 ------93 7.783 100% 79.421 10.986 412.847 251.634 525.796 114.988 283.452 4.336.494 4.336.494 5.420.347 7.107.347 11.443.841 ------50% 91.816 154.697 5.451.958 1.050.110 1.050.110 4.155.335 4.401.848 Parent Bank Parent Risk Weights ------124 20% 7.465 4.820 514.940 154.152 161.617 348.379 353.323 ------10% ------0% 4.675 77.889 14.965 75.000 162.566 162.566 771.250 246.274 661.056 562.382 319.491 2.895.548 2.732.982 ------200% 17.875 17.875 17.875 ------150% 62.207 62.207 62.207 ------94 100% 46.860 10.986 163.349 449.463 145.362 525.796 114.988 283.452 4.336.494 4.336.494 5.420.347 7.160.697 11.497.191 ------50% 91.816 154.697 Risk Weights Consolidated 5.451.958 1.050.110 1.050.110 4.155.335 4.401.848 ------842 20% 7.465 4.820 558.433 154.152 161.617 391.154 396.816 ------10% ------0% 4.675 82.336 14.965 75.000 162.566 162.566 771.250 246.274 661.056 562.382 319.491 2.899.995 2.737.429 Explanations Related to the Consolidated Capital Adequacy Standard Ratio Explanations Related to the Consolidated Capital Adequacy Standard Total Risk Weighted Assets Risk Weighted Total Accounts Non Risk Weighted Derivative Financial Instruments Guarantees and Commitments Off-Balance Sheet Items Off-Balance Other Assets Tangible Assets Tangible Subsidiaries, Associates and Entities Under Common Control (Net) and Income Share Accrued Profit Accruals Sundry Debtors Receivables From Installment Receivables From Sales of Assets Held to Maturity Investments Available-for-Sale Financial Available-for-Sale Assets Financial Lease Receivables Non-Performing Loans (Net) Loans Reserve Deposits Receivables From Reverse Repo Receivables From Transactions Interbank Money Market Placements Due From Domestic Banks, Due From Banks, Branches and Foreign Head Office Abroad Due From Central Bank of Turkey Due From Matured Marketable Securities Matured Cash and Equivalents Balance Sheet Items (Net) Amount Subject to Credit Risk Amount Subject to Credit SECTION FOUR: INFORMATION ON THE CONSOLIDATED FINANCIAL STRUCTURE ON THE CONSOLIDATED SECTION FOUR: INFORMATION I. Ratio is based on the consolidated financial statements is 13,48% (December 31, 2010: 13,46%). Capital Adequacy Standard The capital adequacy ratio of the Group and Assessment of Capital Adequacy Banks”, which was published on November 1, 2006 in the Official with the Communiqué on “Measurement calculated in accordance 26333. The calculation of Capital Adequacy Ratio includes the methods used in determining Ratio, determination risk weighted Gazette numbered and measuring the market risk operational ratio in line with same regulation. banking regulation assets and non-cash loans in line with the relevant
192 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Summary Information Related to Capital Adequacy Standard Ratio:
Consolidated Parent Bank Current Period Prior Period Current Period Prior Period Total Risk Weighted Assets (TRWA) 14.463.917 12.962.593 14.401.869 12.900.990 Amount Subject to Market Risk (ASMR) 65.450 45.800 62.788 38.438 Amount Subject to Operational Risk (ASOR) (*) 1.840.463 1.627.144 1.683.782 1.480.592 Shareholders’ Equity 2.206.854 1.970.220 2.148.814 1.922.505 Shareholders’ Equity / (TRWA + ASMR + ASOR) *100 13,48 13,46 13,31 13,33
(*) The amount subject to operational risk is in accordance with the “Regulation Regarding Measurement and Evaluation of the Bank’s Capital Adequacy Ratio” published in the Official Gazette No: 26333 dated November 1, 2006 which is effective from June 1, 2007. Operational risk is calculated by using the Basic Indicator Approach.
Information Related to Consolidated Components of Shareholders’ Equity:
CORE CAPITAL Consolidated Parent Bank Current Period Prior Period Current Period Prior Period Paid-in Capital (*) 894.525 894.525 894.525 894.525 Nominal Capital 894.525 894.525 894.525 894.525 Capital Commitments (-) - - - - Paid-in Capital Indexation Difference - - - - Share Premium 3.307 3.307 3.307 3.307 Share Cancellations Profits - - - - Legal Reserves 66.732 53.679 65.948 52.950 First Legal Reserve (Turkish Commercial Code 466/1) 64.805 51.752 64.021 51.023 Second Legal Reserve (Turkish Commercial Code 466/2) 1.927 1.927 1.927 1.927 Other Legal Reserve Per Special Legislation - - - - Status Reserves - - - - Other Profit Reserves 5.532 (670) - - Extraordinary Reserves 956.412 709.448 961.405 714.441 Reserves Allocated by the General Assembly 956.412 709.448 961.405 714.441 Retained Earnings - - - - Accumulated Losses - - - - Foreign Currency Share Capital Exchange Difference - - - - Inflationary Adjustment to Legal Reserve, Status Reserves and Extraordinary - - - - Reserves Profit 221.817 262.095 216.090 259.962 Net Profit for the Period 221.817 262.095 216.090 259.962 Prior Years’ Profits - - - - Provision for Possible Losses up to 25% of the Core Capital - - - - Gains on Sale of Associates and Subsidiaries and Properties to be Added to 4.275 4.275 4.275 4.275 Capital Primary Subordinated Loans up to 15% of the Core Capital - - - - Minority Interest 109.776 109.249 - - Losses that cannot be Covered by Reserves (-) 7.483 9.561 - - Net Loss for the Period - - - - Prior Years’ Losses 7.483 9.561 - - Leasehold Improvements (-) 48.435 55.504 48.384 55.453 Prepaid Expenses (-) (**) - 26.881 - 13.153 Intangible Assets (-) 12.127 10.438 11.012 10.419 Deferred Tax Asset Exceeding 10% of the Core Capital (-) - - - - Excess Amount in Clause 3, Article 56 of the Banking Law (-) - - - - Consolidated Goodwill (Net) (-) 4.111 4.111 - - TOTAL CORE CAPITAL 2.190.220 1.929.413 2.086.154 1.850.435
(*) The Bank has purchased 1.500.000 units of its own pledged shares at TRY 5.475 Thousand as a result of sale in accordance with Turkish Commercial Code article 329/2.The effect of purchase has been considered as deduction from the paid-in capital item in the capital adequacy table. (**) Prepaid expenses are not deducted from the core capital according to the Article 1 of the “Regulation for amending the Regulation on Equities of Banks” published in the Official Gazette No: 27870 dated March 10, 2011.
193 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SUPPLEMENTARY CAPITAL Consolidated Parent Bank
Current Period Prior Period Current Period Prior Period
General Loan Loss Reserves 79.229 70.287 79.229 70.287
45% of The Revaluation Reserve for Movable Fixed Assets - - - -
45% of The of Revaluation Reserve for Properties - - - -
Bonus Shares Obtained From Associates, Subsidiaries and - - - - Entities Under Common Control
Primary Subordinated Loans Excluded in the Calculation of the - - - - Core Capital
Secondary Subordinated Loans - - - -
45% of The Marketable Securities Value Increase Fund (13.599) 3.029 (13.599) 3.029
Associates and Subsidiaries - - - -
Available for Sale Financial Assets (13.599) 3.029 (13.599) 3.029
Indexation Differences for Capital Reserves, Profit Reserves and Retained Earnings (Except Indexation Differences for Legal - - - - Reserves, Statutory Reserves and Extraordinary Reserves)
Minority Interest - - - -
TOTAL SUPPLEMENTARY CAPITAL 65.630 73.316 65.630 73.316
TIER III CAPITAL - - - -
CAPITAL 2.255.850 2.002.729 2.151.784 1.923.751
DEDUCTIONS FROM THE CAPITAL 48.996 32.509 2.970 1.246
Consolidated Investments in Banks and Financial Institutions 126 131 - 34
Secondary Subordinated Loans and Primary or Secondary Subordinated Debt Placements Granted to Banks and Financial - - - - Institutions (Domestic, Foreign) or Qualified Shareholders
Shareholdings in the Banks and Financial Institutions which are Accounted for Under the Equity Pick up Method but the Assets 45.900 31.166 - - and Liabilities are not Consolidated
Loans Granted not in Compliance with Articles 50 and 51 of - - - - the Banking Law
The Net Book Value of the Bank’s Real Estates in Excess of 50% of the Equity and in accordance with Article 57 of the Act, Net Book Value of Real Estates and Commodities Acquired in 1.185 1.212 1.185 1.212 Exchange of Loans and Receivables that should be Disposed of However; have not been Disposed of Although It has been 5 Years since the Beginning of the Acquisition Date
Other (*) 1.785 - 1.785 -
TOTAL SHAREHOLDERS’ EQUITY 2.206.854 1.970.220 2.148.814 1.922.505
(*) In accordance with the principles of the regulations described in “Measurement and Practices of Bank’s Shareholder’s Equity” published in the Official Gazette No: 26333, Article 10/1, clause (e), dated November 1, 2006, BRSA has published the board decision related to consumer loans for the purpose of acquiring housing in the Official Gazette No: 27789 dated December 18, 2010.
194 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
II. Explanations on Credit Risk Credit worthiness of loan customers are monitored and semiannually and regularly reviewed by the Risk Monitoring Department of the Parent Bank in accordance with the Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”. The account statements are obtained based on the prevailing regulations. Credit limits are determined by the Board of Directors, the Credit Committee of the Parent Bank and the Credit Administration. The Parent Bank obtains sufficient guarantees for its risks, comprising of personal surety, real-estate mortgage, cash blockage and customer cheques. For the derivative transactions and other similar positions of the Parent Bank, operational limits are set by the Board of Directors and the transactions are performed within these limits. There are no options or any other similar transactions. Indemnified non-cash loans are subject to the same risk weight with the overdue loans. The Parent Bank monitors restructured and rescheduled loans in accordance with the Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated By Banks and Procedures and Principles of Allocating Provisions”. Financial position and business operation of those customers are analyzed systematically and, principal and profit payments based on the restructured payment plan are monitored by the corresponding departments. As of December 31, 2011, the risk of the Parent Bank from its top 100 cash loan customers share in total cash loans ratio is 38,60% (December 31, 2010: 39,32%). As of December 31, 2011, the risk of the Parent Bank from its top 100 non-cash loan customers share in total non-cash loan ratio is 47,01% (December 31, 2010: 47,22%). As of December 31, 2011, the cash and non-cash receivables of the Parent Bank from its top 100 loan customers share in total balance sheet assets and non-cash loan ratio is 35,86% (December 31, 2010: 36,66%). As of December 31, 2011 the Parent Bank’s general provision amount for its credit risk is TRY 131.066 Thousand (December 31, 2010: TRY 117.204 Thousand).
Distribution of Credit Risk by Types of Borrowers and Geographical Concentration:
Loans to Banks and Loans to Individuals and Marketable Securities Other Financial Other Loans (****) Corporate (**) (***) Institution Current Prior Current Prior Current Prior Current Prior Period Period Period Period Period Period Period Period Borrowers’ Concentration Private Sector 10.305.287 9.170.204 255 563 1.250 2.581 12.209.133 11.586.101 Public Sector 1.183 1.439 - - 856.597 471.516 - - Banks - - 410.247 224.559 - - 1.556.805 723.120 Retail 2.529.515 1.639.055 - - - - 166.782 194.113 Share Certificates - - - - 7.830 5.121 191.262 171.111 Total 12.835.985 10.810.698 410.502 225.122 865.677 479.218 14.123.982 12.674.445 Geographical Concentration Domestic 12.315.211 10.452.269 321.316 107.194 864.870 476.560 12.572.751 11.837.439 European Union 142.942 102.925 24.905 34.515 753 836 1.141.971 344.560 Countries OECD Countries (*) 10.881 9.740 9.041 7.406 54 1.822 173.063 321.702 Off-Shore Banking 175.405 136.804 39 - - - 15.896 18.103 Regions USA, Canada 37.183 796 36.866 74.871 - - 4.214 3.973 Other Countries 154.363 108.164 18.335 1.136 - - 216.087 148.668 Total 12.835.985 10.810.698 410.502 225.122 865.677 479.218 14.123.982 12.674.445
(*) OECD countries other than European Union countries, USA and Canada. (**) Non-performing loans are not included. (***) Includes financial assets at fair value through profit or loss, available-for-sale and held-to-maturity. (****) Includes transactions defined as loan in Article 48 of Law No: 5411 and not covered in the first three columns of the Uniform Chart of Accounts above.
195 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Information According to Geographical Concentration:
Non-Cash Equity Assets Liabilities Net Income Loans Investments Current Period – December 31, 2011 Domestic 16.527.405 13.400.076 8.842.441 - 221.817 European Union Countries 170.553 833.082 162.203 - - OECD Countries (*) 19.976 22.209 146.443 - - Off-shore Banking Regions 192.542 126.530 15.896 - - USA, Canada 74.050 162.387 4.214 - - Other Countries 172.707 557.442 177.562 - - Associates, Subsidiaries and Entities Under - - - 191.262 - Common Control Unallocated Assets/Liabilities (**) - - - - - Total 17.157.233 15.101.726 9.348.759 191.262 221.817 Prior Period – December 31, 2010 Domestic 14.004.750 11.865.211 8.923.684 - 262.095 European Union Countries 138.276 276.678 69.318 - - OECD Countries (*) 18.968 61.916 94.303 - - Off-shore Banking Regions 142.923 32.959 18.103 - - USA, Canada 75.667 52.649 3.973 - - Other Countries 109.300 333.028 117.502 - - Associates, Subsidiaries and Entities Under - - - 171.111 - Common Control Unallocated Assets/Liabilities (**) - - - - - Total 14.489.884 12.622.441 9.226.883 171.111 262.095
(*) OECD countries other than European Union countries, USA and Canada. (**) Assets and liabilities that cannot be allocated on a coherent basis.
Sector Concentration for Cash Loans:
Current Period Prior Period TRY (%) FC (%) TRY (%) FC (%) Agriculture 227.134 2,01 7.834 0,50 270.144 2,75 6.423 0,65 Farming and Raising Livestock 177.436 1,57 4.355 0,28 219.777 2,24 5.252 0,53 Forestry, Wood and Paper 40.721 0,36 645 0,04 40.540 0,41 - - Fishery 8.977 0,08 2.834 0,18 9.827 0,10 1.171 0,12 Manufacturing 4.159.484 36,88 917.144 58,59 3.868.022 39,38 389.656 39,49 Mining and Quarry 186.542 1,65 329.822 21,07 163.782 1,67 65.098 6,60 Production 3.088.879 27,39 345.801 22,09 2.885.961 29,38 211.262 21,41 Electricity, Gas and Water 884.063 7,84 241.521 15,43 818.279 8,33 113.296 11,48 Construction 2.350.846 20,84 128.611 8,22 2.064.055 21,01 166.922 16,91 Services 1.719.671 15,25 508.254 32,47 1.717.887 17,48 420.177 42,57 Wholesale and Retail Trade 690.980 6,13 79.161 5,06 603.476 6,14 46.121 4,67 Hotel, Tourism, Food and 230.770 2,05 94.276 6,02 224.160 2,28 99.674 10,10 Beverage Services Transportation and 262.792 2,33 269.811 17,24 319.317 3,25 257.557 26,10 Communication Financial Institutions 110.698 0,98 7.388 0,47 89.029 0,91 - - Real Estate and Renting 136.322 1,21 - - 206.592 2,10 - - Services Self-Employment Services 15.210 0,13 1.797 0,11 12.746 0,13 2.319 0,23 Education Services 135.794 1,20 55.821 3,57 93.270 0,95 14.493 1,47 Health and Social Services 137.105 1,22 - - 169.297 1,72 13 - Other 2.821.252 25,02 3.399 0,22 1.904.269 19,38 3.706 0,38 Total 11.278.387 100,00 1.565.242 100,00 9.824.377 100,00 986.884 100,00
196 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
The table below shows the maximum exposure to credit risk for the components of the financial statements:
Current Period Prior Period Central Bank of the Republic of Turkey 1.360.161 1.830.902 Due from Banks 402.858 224.559 Derivative Financial Assets Held for Trading 8.861 7.478 Available-for-Sale Financial Assets 779.763 394.708 Held to Maturity Investments 77.053 77.032 Loans 13.153.771 10.954.796 Finance Lease Receivables 297.751 105.471 Total 16.080.218 13.594.946
Contingent Liabilities 9.348.759 9.226.883 Commitments 4.216.034 2.765.831 Total 13.564.793 11.992.714
Total Credit Risk Exposure 29.645.011 25.587.660
Credit Rating System: The credit risk is assessed through the internal rating system of the Parent Bank, by classifying loans from highest grade to lowest grade according to the probability of default. As of December 31, 2011 consumer loans are excluded from the internal rating system of the Parent Bank. Additional scoring methodologies are applied for these loans. The risks that are subject to rating models can be allocated as follows:
The Share in Total (%) Category Description of Category Current Period Prior Period Above Average The borrower has a very strong financial structure 35% 35% Average The borrower has an intermediate level of financial structure 35% 36% The financial structure of the borrower has to be closely Under Average 13% 11% monitored in the medium term Not Graded The borrower is not assessed by the Parent Bank 17% 18% Total 100% 100%
III. Explanations Related to the Consolidated Market Risk The amount subject to market risk is calculated and reported with the Standard Method described in Section 4 of the Communiqué on “Measurement and Assessment of Banks’ Capital Adequacy” published in the Official Gazette No: 26333 dated November 1, 2006. Market risk is measured on a monthly basis. a) Explanations related to market risk:
Amount (I) Capital Requirement to be Employed for General Market Risk - Standard Method 2.168 (II) Capital Requirement to be Employed for Specific Risk - Standard Method 304 (III) Capital Requirement to be Employed for Currency Risk - Standard Method 2.764 (IV) Capital Requirement to be Employed for Commodity Risk - Standard Method - (V) Capital Requirement to be Employed for Settlement Risk - Standard Method - (VI) Total Capital Requirement to be Employed for Market Risk Resulting From Options – Standard Method (VII) Total Capital Requirement to be Employed for Market Risk in Banks Using Risk Measurement Model - (VIII) Total Capital Requirement to be Employed for Market Risk (I+II+III+IV+V+VI) 5.236 (IX) Amount Subject to Market Risk (12,5 x VIII) or (12,5 x VII) 65.450
197 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
b) Average market risk table calculated at the end of each month in the current period:
Current Period Prior Period Average Maximum Minimum Average Maximum Minimum Interest Rate Risk (*) 30.278 41.838 13.838 12.284 20.288 3.288 Common Stock Risk 7.722 10.675 3.800 10.694 15.338 6.150 Currency Risk 34.122 45.850 24.512 17.563 19.238 16.275 Commodity Risk ------Settlement Risk ------Option Risk ------Total Value Subject to Risk 72.122 98.363 42.150 40.541 54.864 25.713
(*) The Parent Bank calculates by considering market risk of revenue sharing bonds, forward and swap transactions .
c) Other price risks: The Group is exposed to stock price risk as a consequence of investing in publicly traded companies in İstanbul Stock Exchange. As of reporting date, assuming that all other variables have fixed and 10% higher/lower change in revaluation method parameters (stock prices and funds prices) is appeared, income before tax in statement of income will be anticipated TRY 628 Thousand and TRY 94 Thousand increase/decrease, respectively (December 31, 2010: TRY 490 Thousand and None).
IV. Explanations on Operational Risk The Group calculates the amount subject to operational risk based on “Basic Indicator Method” by using 2010, 2009 and 2008 year end gross income balances of the Group, in accordance with the Section 4 of the “Regulation Regarding Measurement and Evaluation of Banks’ Capital Adequacy Ratio” published in the Official Gazette No: 26333 dated November 1, 2006, namely “The Calculation of the Amount Subject to Operational Risk”.
V. Explanations Related to Consolidated Currency Risk Foreign currency risk indicates the probability of loss that banks are subject to due to the exchange rate changes in the market. While calculating the share capital requirement, all foreign currency assets, liabilities and forward transactions of the Parent Bank are taken into consideration and value at risk is calculated by using the standard method. Currency risk is managed by considering internal currency limits that are designated as Bank’s risk policies. Within the frame of legal limits defined by FC Net General Position / Equity Ratio and internal currency risk limits determined by Board of Directors , decisions are taken by Asset and Liability Committee meet periodically, take decisions for currency and parity risk hedge and those decisions are implemented strictly. The Parent Bank does not use any derivative instruments for hedging. The Standard Method stated in the statutory reporting is used to measure the currency risk of the Parent Bank. The risk measurements are performed on a monthly basis. The announced current foreign exchange buying rates of the Parent Bank as of December 31, 2011 and the previous five working days are as follows:
December 31, 2011 US Dollar Euro Sterling 100 Japanese Yen “FC Evaluation Rate” 1,9065 2,4626 2,9347 2,4475 Previously; 29.12.2011 (Day 1) 1,8897 2,4462 2,9228 2,4203 28.12.2011 (Day 2) 1,8847 2,4626 2,9501 2,4183 27.12.2011 (Day 3) 1,8833 2,4609 2,9444 2,4137 26.12.2011 (Day 4) 1,8809 2,4510 2,9382 2,4029 23.12.2011 (Day 5) 1,8779 2,4497 2,9432 2,4475
The simple arithmetic averages of the major current foreign exchange buying rates of the Parent Bank for the thirty days before December 31, 2011 are as follows; TRY 1,8577 per US Dollar, TRY 2,4463 per EURO, TRY 2,8972 per GBP and TRY 2,3823 per 100 JPY.
198 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Information on the Foreign Currency Risk of the Group: Foreign Currencies (Thousand TRY)
EUR USD YEN Other Total Current Period - December 31, 2011 Assets Cash (Cash in TRY,Cash in Foreign Currency, Money in Transit, Cheques Purchased) and Balances with Central Bank of the 180.072 616.682 - 355.471 1.152.225 Republic of Turkey Due from Banks 120.987 208.973 1.200 12.327 343.487 Financial Assets at Fair Value through Profit and Loss (**) - - - - - Money Market Placements - - - - - Financial Assets Available-for-Sale - - - - - Loans (*) 1.464.200 3.041.048 - - 4.505.248 Subsidiaries, Associates and Entities under Common Control - - - - - Held-to-Maturity Investments - - - - - Derivative Financial Assets for Hedging Purposes - - - - - Tangible Assets - - - - - Intangible Assets - - - - - Other Assets 1.265 1.838 - - 3.103 Total Assets 1.766.524 3.868.541 1.200 367.798 6.004.063 Liabilities Current and Profit Sharing Accounts of Banks 49.109 68.242 - 43 117.394 Current and Profit Sharing Accounts 1.264.585 2.224.175 1.089 966.678 4.456.527 Money Market Borrowings - - - - - Funds Provided from Other Financial Institutions 517.435 933.116 - 7.279 1.457.830 Marketable Securities Issued - - - - - Sundry Creditors 1.279 2.609 - 12 3.900 Derivative Financial Liabilities for Hedging Purposes - - - - - Other Liabilities (**) 9.241 66.366 138 58 75.803 Total Liabilities 1.841.649 3.294.508 1.227 974.070 6.111.454 Net Balance Sheet Position (75.125) 574.033 (27) (606.272) (107.391) Net Off-Balance Sheet Position 77.107 (581.698) 38 607.267 102.714 Financial Derivative Assets (***) 148.989 234.910 38 608.417 992.354 Financial Derivative Liabilities (***) 71.882 816.608 - 1.150 889.640 Non-Cash Loans (****) 1.535.113 3.567.860 86.954 111.325 5.301.252 Prior Period - December 31, 2010 Total Assets 1.137.690 3.183.187 5.561 129.542 4.455.980 Total Liabilities 1.323.332 2.670.207 6.457 145.683 4.145.679 Net Balance Sheet Position (185.642) 512.980 (896) (16.141) 310.301 Net Off-Balance Sheet Position 188.586 (508.585) 907 16.933 (302.159) Financial Derivative Assets (***) 195.760 3.332 907 17.699 217.698 Financial Derivative Liabilities (***) 7.174 511.917 - 766 519.857 Non-Cash Loans (****) 1.376.636 3.485.728 44.138 93.786 5.000.288
(*) TRY 2.919.385 Thousand of foreign currency indexed loan is also shown under loans line (December 31, 2010: TRY 2.564.320 Thousand). (**) In accordance with the principles of the Regulations on the “Measurement and Practices of Bank’s Net Overall FX position Shareholders’ Equity Ratio on a Consolidated and Unconsolidated Basis”, income accrual from derivative financial instruments amounting to TRY 1.250 Thousand (December 31, 2010 : TRY 2.581 Thousand) in assets and general reserves recorded to expense accounts amounting to TRY 15.111 Thousand (December 31, 2010: TRY 12.045 Thousand) and expense accrual from derivate financial instruments amounting to TRY 11.715 Thousand (December 31, 2010: TRY 5.397 Thousand) in liabilities, are not taken into consideration in the currency risk calculation. (***) Forward asset purchase-sale commitments of TRY 350.892 Thousand are added to derivative financial assets and TRY 236.248 Thousand is added to derivative financial liabilities (December 31, 2010: TRY 22.963 Thousand is added to derivative financial assets and TRY 56.280 Thousand is added to derivative financial liabilities). (****) The related balances do not have any effect on off balance sheet position.
199 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Foreign Currency Sensitivity: The Group is mainly exposed to USD and EUR currency risks. The following table details the Bank’s sensitivity to a 10% increase and decrease in the TRY against USD and EUR. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the possible change in foreign exchange rates. A positive number indicates an increase in profit or loss and other equity in the case of short position and a decrease in the case of long position where the TRY strengthens against USD and EUR.
Change in Currency Rate in % Effect on Profit or Loss Current Period Prior Period USD 10 % increase (767) 440 USD 10 % decrease 767 (440) EUR 10 % increase 198 294 EUR 10 % decrease (198) (294)
VI. Explanations on Interest Rate Risk Since the Group has interest-free banking operations, it does not have any interest sensitive asset or liability and consequently, it does not have any interest rate risk.
VII. Explanations on Liquidity Risk In order to avoid the liquidity risk, the Parent Bank diversifies its funding resources as customer deposits and foreign borrowings, considers the maturity match between assets and liabilities, focuses on strategies especially for the provision of long-term resources and retains its liquid assets in order to provide sufficient liquidity in any market fluctuations. Maturity structure of the TRY and FC deposits, cost and change in the total amount are monitored on daily basis by considering the past developments and future expectations. The Parent Bank’s policy is to establish an asset structure that primarily meets all kinds of liabilities by using liquid resources. The Board of Directors of the Parent Bank determines a standard for the liquidity ratios, and applies the standard on a regular basis in order to ensure.
The table below gives a summary of the liquidity ratio of the Parent Bank:
Current Period 1st Term Period (Weekly) 2nd Term Period (Monthly) Average (%) 135,72 110,28 Highest (%) 167,26 121,20 Lowest (%) 112,65 100,63
Prior Period 1st Term Period (Weekly) 2nd Term Period (Monthly) Average (%) 164,61 127,57 Highest (%) 211,24 151,42 Lowest (%) 131,67 101,97
200 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Presentation of Assets and Liabilities According to Their Maturities:
Current Period – Up to 1 1-3 3-12 Over 5 Demand 1-5 Years Undistributed (*) Total December 31, 2011 Month Months Months Years Assets Cash (Cash in TRY,Cash in Foreign Currency, Money in Transit, Cheques 881.872 797.780 - - - - - 1.679.652 Purchased) and Balances with Central Bank of the Republic of Turkey Due from Banks 350.496 34.801 15.876 1.683 2 - - 402.858 Financial Assets at Fair Value through 7.611 1.250 - - - - - 8.861 Profit and Loss Money Market ------Placements Available-for-Sale 219 - 128.782 254.438 396.324 - - 779.763 Financial Assets Loans (**) - 1.844.532 1.539.782 4.505.279 4.723.556 528.231 - 13.141.380 Held-To-Maturity - - 77.053 - - - - 77.053 Investments Other Assets 13.219 71.612 11.651 14.891 12 - 1.147.543 1.258.928 Total Assets 1.253.417 2.749.975 1.773.144 4.776.291 5.119.894 528.231 1.147.543 17.348.495
Liabilities Current and Profit Sharing Accounts of 41.802 52.433 2.085 21.239 - - - 117.559 Banks Other Current and Profit Sharing 3.078.507 4.138.206 913.761 3.551.409 493.479 - - 12.175.362 Accounts Funds Provided from Other Financial - 160.135 68.559 977.405 246.515 32.573 - 1.485.187 Instruments Money Market - 279.207 - - - - - 279.207 Borrowings Marketable ------Securities Issued Sundry Creditors 32.336 348.495 2.895 3.711 4.493 - 716 392.646 Other Liabilities (***) 9.467 171.455 1.547 52.920 - - 2.663.145 2.898.534 Total Liabilities 3.162.112 5.149.931 988.847 4.606.684 744.487 32.573 2.663.861 17.348.495 Net Liquidity Gap (1.908.695) (2.399.956) 784.297 169.607 4.375.407 495.658 (1.516.318) -
Prior Period – December 31, 2010 Total Assets 1.719.318 1.865.913 2.123.035 3.503.712 4.357.094 261.732 830.191 14.660.995 Total Liabilities 2.110.538 5.151.527 2.122.186 2.775.218 119.400 1.018 2.381.108 14.660.995 Net Liquidity Gap (391.220) (3.285.614) 849 728.494 4.237.694 260.714 (1.550.917) -
(*)Asset items, such as tangible assets, investment in associates and subsidiaries, stationary supplies, prepaid expenses and non-performing loans which are required for banking operations and which cannot be converted to cash in short-term are included in this column.. (**) Loans balance also includes Finance Lease Receivable balance. (***) Equity is presented in the “Undistributed” column under “Other Liabilities”.
201 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Analysis of Financial Liabilities Based on the Remaining Contractual Maturities: The table below is drawn up based on the undiscounted contractual maturities of the financial assets and liabilities. Profit share expenses to be paid on such liabilities are included in this table. “Adjustments” column indicates items that may lead to potential cash flows in the following period. These items are included in maturity analysis, but not included in the balance sheet value of such financial liabilities.
Up to 1 1-3 3-12 Over 5 Demand 1-5 Years Adjustments Total Month Months Months Years December 31, 2011 Funds Collected 3.120.309 4.190.639 915.846 3.572.648 493.479 - - 12.292.921 Funds Borrowed - 161.258 70.225 1.002.191 349.273 40.045 (137.805) 1.485.187 Money Market - 279.319 - - - - (112) 279.207 Borrowings Total 3.120.309 4.631.216 986.071 4.574.839 842.752 40.045 (137.917) 14.057.315
December 31, 2010 Funds Collected 2.079.169 4.619.951 2.069.954 2.276.132 41.289 - - 11.086.495 Funds Borrowed - 27.346 47.910 516.549 97.772 1.147 (40.013) 650.711 Money Market ------Borrowings Total 2.079.169 4.647.297 2.117.864 2.792.681 139.061 1.147 (40.013) 11.737.206
Analysis of Contractual Expiry by Maturity of the Group’s Derivative Financial Instruments:
Up to 1 Month 1-3 Months 3-12 Months 1-5 Years Over 5 Years Total December 31, 2011 Held for Trading Transactions 662.842 - - - - 662.842 Forward Sales Contracts ------Swap Sales Contracts 662.842 - - - - 662.842 Total 662.842 - - - - 662.842
Up to 1 Month 1-3 Months 3-12 Months 1-5 Years Over 5 Years Total December 31, 2010 Held for Trading Transactions 254.867 208.710 - - - 463.577 Forward Sales Contracts ------Swap Sales Contracts 254.867 208.710 - - - 463.577 Total 254.867 208.710 - - - 463.577
202 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
VIII. Presentation of Financial Assets and Liabilities at Fair Value As the loan portfolio has fixed profit sharing rates, estimated fair value is calculated by using the discounted cash flows. The table below summarizes the book value and fair value of the financial assets and liabilities. Book value is the sum of the acquisition value and accumulated profit share accruals.
Book Value Fair Value Current Period Prior Period Current Period Prior Period Financial Assets 15.761.215 13.443.933 15.739.066 14.221.137 Banks and Other Financial 1.763.019 2.055.461 1.763.019 2.055.461 Institutions (*) Financial Assets Available For Sale 779.763 394.708 779.763 394.708 Held to Maturity Investments 77.053 77.032 77.282 79.962 Loans (**) 13.141.380 10.916.732 13.119.002 11.691.006 Financial Liabilities 14.449.961 12.020.112 14.393.631 12.020.378 Funds Collected From Banks (***) 117.559 12.916 117.559 12.916 Other Current and Profit Sharing 12.175.362 11.073.579 12.175.362 11.073.579 Accounts (***) Funds Provided From Other 1.485.187 650.711 1.428.857 650.977 Financial Institutions Sundry Creditors 392.646 282.906 392.646 282.906 Money Market Borrowings 279.207 - 279.207 -
(*) As receivables from banks and other financial institutions are in short-term nature, their fair value approximates to their book value. (**)In order to calculate the fair value of loans, current profit sharing rates are used as of the balance sheet date. Loan balance also includes finance lease receivables. Fair values of loans are calculated under the assumption that all installments are distributed equally. (***) Book value of the funds collected approximates to their fair value as it is revalued with the year end unit value.
The following table shows an analysis of financial instruments recorded at fair value, between those whose fair value is recorded on quoted market prices, those involving valuation techniques where all model inputs are observable in the market and, those where the valuation techniques involves the use of non observable inputs:
December 31, 2011 1st Level TRY 2nd Level TRY 3rd Level TRY Financial Assets Financial Assets at Fair Value Through Profit or Loss 7.611 1.250 - Financial Assets Available for Sale 399.250 380.294 - Total 406.861 381.544 - Financial Liabilities Financial Liabilities at Fair Value Through Profit or Loss - 11.715 - Other Financial Liabilities - - - Total - 11.715 -
December 31, 2010 1st Level TRY 2nd Level TRY 3rd Level TRY Financial Assets Financial Assets at Fair Value Through Profit or Loss 4.897 2.581 - Financial Assets Available For Sale 103.400 291.084 - Total 108.297 293.665 - Financial Liabilities Financial Liabilities at Fair Value Through Profit or Loss - 5.397 - Other Financial Liabilities - - - Total - 5.397 -
IX. Explanations Related to Transactions Carried out on Behalf of Other Parties and Fiduciary Assets The Group does not deal with fiduciary operations or transactions made on behalf of others.
203 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
SECTION FIVE: EXPLANATIONS AND DISCLOSURES ON THE CONSOLIDATED FINANCIAL STATEMENTS
I. Explanations and Disclosures Related to the Consolidated Assets
1. Information on Cash and Balances with the Central Bank of Turkish Republic
1.1. Information on Cash:
Current Period Prior Period TRY FC TRY FC Cash in TRY/ Foreign Currency 113.521 204.602 87.616 158.106 Central Bank of the Republic of Turkey 412.559 947.602 1.261.233 569.669 Other 1.347 21 8.328 17 Total 527.427 1.152.225 1.357.177 727.792
1.2. Information on the Central Bank of Turkish Republic Accounts:
Current Period Prior Period TRY FC TRY FC Unrestricted Demand Deposit 412.559 149.823 1.261.233 248.965 Unrestricted Time Deposit - - - - Restricted Time Deposit - - - - Other (*) - 797.779 - 320.704 Total 412.559 947.602 1.261.233 569.669
(*) Stands for the reserve deposit kept in Central Bank of the Republic of Turkey in relation to foreign currency liabilities.
According to the communiqué No: 2005/1 on “Reserve Deposits”, the banks operating in Turkey are required to keep reserve deposit at the rates varying from 5% to 11% (December 31, 2010: 6 % for all TRY liabilities) for TRY liabilities and at the rates varying from 6% to 11% (December 31, 2010: 11% for all FC liabilities) for foreign currency liabilities mainly denominated in U.S. Dollar and Euro depending on the maturity of the liabilities. Profit share has not paid for reserve deposits.
2. Information on Financial Assets at Fair Value through Profit and Loss
2.1. Information on Financial Assets at Fair Value through Profit and Loss Blocked/Given as Collateral or Subject to Repurchase Agreements: None.
2.2. Positive Differences Related to Derivative Financial Assets Held for Trading:
Current Period Prior Period TP YP TP YP Forward Transactions (*) - 1.121 - 67 Swap Transactions - 129 - 2.514 Futures Transactions - - - - Options - - - - Other - - - - Total - 1.250 - 2.581
(*) Includes forward asset purchase/sale commitments.
204 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
3. Information on Banks
3.1. Information on Banks and Other Financial Institution: Current Period Prior Period TRY FC TRY FC Banks 59.371 343.487 74.157 150.402 Domestic (*) 59.371 261.689 74.157 32.474 Foreign - 81.798 - 117.928 Branches and Head Office - - - - Abroad Total 59.371 343.487 74.157 150.402
(*) It also contains TRY 17.487 Thousand blocked accounts (December 31, 2010: TRY 15.231 Thousand) which is deposited by Işık Sigorta A.Ş. as elementary branches insurance warranty in favor of Turkish Treasury.
3.2. Information on Foreign Bank Accounts: Unrestricted Amount Restricted Amount Current Period Prior Period Current Period Prior Period European Union Countries 24.905 34.515 - - USA, Canada 36.866 74.871 - - OECD Countries (*) 9.041 7.406 - - Off-Shore Banking Regions 39 - - - Other 1.174 1.136 9.773 - Total 72.025 117.928 9.773 -
(*) OECD countries other than European Union countries, USA and Canada.
4. Information on Financial Assets Available for Sale
4.1. Information on Available for Sale Financial Assets Blocked/Given as Collateral or Subject to Repurchase Agreements:
4.1.1 Information on Financial Assets Available For Sale Given as Collateral or Blocked: None.
4.1.2 Information on Financial Assets Available for Sale Subject to Repurchase Agreements: As of December 31, 2011, the Group has revenue sharing certificates in “Available for Sale Financial Assets” portfolio which are subject to repurchase agreements with the Central Bank of the Republic of Turkey amounting to TRY 322.459 Thousand nominal value (December 31, 2010: None.) and TRY 325.712 Thousand fair value (December 31, 2010: None).
4.2. Information on Financial Assets Available for Sale As of December 31, 2011, the Parent Bank has revenue sharing certificate which has TRY 775.000 Thousand nominal value (December 31, 2010: TRY 375.000 Thousand) and TRY 779.544 Thousand fair value at “Available for Sale Financial Assets” portfolio (December 31, 2010: TRY 394.484 Thousand), as of 4,35% and TRY 125 Thousand of Tarsim Tarım Sigortaları Havuz İşletmesi A.Ş.’s shares and TRY 94 Thousand other share certificates as of December 31, 2011. Current Period Prior Period Debt Securities 783.294 394.484 Quoted on a Stock Exchange 399.250 103.400 Not Quoted (*) 384.044 291.084 Share Certificates 219 224 Quoted on a Stock Exchange - - Not Quoted 219 224 Impairment Provision (-) (3.750) - Total 779.763 394.708
(*) Includes debt securities that are not traded in the stock market at the end of the related periods although they are listed.
205 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5. Information on Loans
5.1. Information on All Types of Loans or Advances Given to Shareholders and Employees of the Parent Bank:
Current Period Prior Period Cash Non-Cash Cash Non-Cash Direct Loans Granted to Shareholders 57.567 2.565 78.453 3.138 Corporate Shareholders 22.986 1.870 33.583 2.655 Real Person Shareholders 34.581 695 44.870 483 Indirect Loans Granted to Shareholders 148.505 162.080 94.095 39.644 Loans Granted to Employees 14.291 118 9.870 118 Total 220.363 164.763 182.418 42.900
5.2. Information on First and Second Group Loans and Other Receivables Including Restructured or Rescheduled Loans:
Closely Monitored Loans and Other Standard Loans and Other Receivables Receivables (*) Loans and Other Restructured or Loans and Other Restructured or Receivables Rescheduled Receivables Rescheduled Cash Loans Discount Notes - - - - Export Loans 132.974 2.789 11.641 111.799 Import Loans 171.345 - - - Business Loans 8.505.578 92.516 273.119 379.901 Consumer Loans 1.615.760 518 12.363 877 Credit Cards 927.066 2.569 6.690 1.010 Investments on Profit/Loss 7.623 - - - Partnership Precious Metal Loans - - - - Loans Given to Financial Sector 256 - - - International Loans 429.707 758 27.782 69.914 Other 35.376 1 7.198 16.499 Other Receivables - - - - Total 11.825.685 99.151 338.793 580.000
(*) In addition to the closely monitored loans, the Bank also has TRY 1.384 Thousand of closely monitored finance lease receivables. (December 31, 2010: TRY 320 Thousand).
5.3. Loan Distribution Based by Maturity Structure:
Closely Monitored Loans and Other Standard Loans and Other Receivables Receivables Loans and Other Restructured or Loans and Other Restructured or Receivables Rescheduled Receivables Rescheduled Short-Term Loans and Other 3.721.056 3.275 82.924 18.031 Receivables Loans 3.721.056 3.275 82.924 18.031 Other Receivables - - - - Medium-Term and Long-Term 8.104.629 95.876 255.869 561.969 Loans Loans 8.104.629 95.876 255.869 561.969 Other Receivables - - - -
206 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.4. Information on Consumer Loans, Retail Credit Cards, Loans Given to Personnel and Personnel Credit Cards:
Short Term Medium-term and Long-Term Total Consumer Loans-TRY 4.725 1.612.026 1.616.751 Housing Loans 1.882 1.498.834 1.500.716 Vehicle Loans 1.075 105.304 106.379 Consumer Loans 532 7.888 8.420 Other 1.236 - 1.236 Consumer Loans-FC Indexed - 4.938 4.938 Housing Loans - 4.812 4.812 Vehicle Loans - 65 65 Consumer Loans - 61 61 Other - - - Consumer Loans-FC - - - Housing Loans - - - Vehicle Loans - - - Consumer Loans - - - Other - - - Retail Credit Cards-TRY 879.849 13.686 893.535 With Installments 273.318 13.686 287.004 Without Installment 606.531 - 606.531 Retail Credit Cards-FC - - - With Installments - - - Without Installment - - - Personnel Loans-TRY 107 7.715 7.822 Housing Loans 5 3.339 3.344 Vehicle Loans 63 4.053 4.116 Consumer Loans 39 323 362 Other - - - Personnel Loans-FC Indexed - 7 7 Housing Loans - 7 7 Vehicle Loans - - - Consumer Loans - - - Other - - - Personnel Loans-FC - - - Housing Loans - - - Vehicle Loans - - - Consumer Loans - - - Other - - - Personnel Credit Cards-TRY 6.338 124 6.462 With Installments 2.614 124 2.738 Without Installment 3.724 - 3.724 Personnel Credit Cards-FC - - - With Installments - - - Without Installment - - - Overdraft Account-TRY(Individuals) - - - Overdraft Account-FC (Individuals) - - - Total 891.019 1.638.496 2.529.515
207 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.5. Information on Installment Basis Commercial Loans and Corporate Credit Cards:
Short Term Medium and Long Term Total Installment Commercial Loans-TRY 21.663 16.429 38.092 Business Loans 51 9.112 9.163 Vehicle Loans 21 7.317 7.338 Consumer Loans - - - Other 21.591 - 21.591 Installment Commercial Loans-FC Indexed - - - Business Loans - - - Vehicle Loans - - - Consumer Loans - - - Other - - - Installment Commercial Loans-FC - - - Business Loans - - - Vehicle Loans - - - Consumer Loans - - - Other - - - Corporate Credit Cards-TRY 37.267 71 37.338 With Installments 1.850 71 1.921 Without Installments 35.417 - 35.417 Corporate Credit Cards-FC - - - With Installments - - - Without Installments - - - Overdraft Account-TRY(Corporate) - - - Overdraft Account- FC (Corporate) - - - Total 58.930 16.500 75.430
5.6. Allocation of Loans according to Borrowers:
Current Period Prior Period Public Sector 1.183 1.439 Private Sector 12.842.446 10.809.822 Total 12.843.629 10.811.261
5.7. Domestic and Foreign Loans:
Current Period Prior Period Domestic Loans 12.315.468 10.452.831 Foreign Loans 528.161 358.430 Total 12.843.629 10.811.261
5.8. Loans Granted to Subsidiaries and Associates:
Current Period Prior Period Loans Granted to Subsidiaries and Associates Directly 107.795 77.494 Loans Granted to Subsidiaries and Associates Indirectly - - Total 107.795 77.494
208 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.9. Specific Provisions Provided Against Loans:
Current Period Prior Period Loans and Receivables with Limited Collectibility 40.541 6.737 Loans and Receivables with Doubtful Collectability 62.435 37.039 Uncollectible Loans and Receivables 202.612 259.840 Total 305.588 303.616
5.10. Information on Non-Performing Loans (Net):
5.10.1. Information on Loans and Other Receivables Included in the Non-Performing Loans which are Restructured or Rescheduled:
III Group IV Group V Group Loans and Loans and Receivables with Uncollectible Loans Receivables with Doubtful and Receivables Limited Collectibility Collectability Current Period (Gross Amount Before Specific Provision) 10.751 13.290 1.700 Restructured Loans and Other Receivables 962 1.468 272 Rescheduled Loans and Other Receivables 9.789 11.822 1.428 Prior Period (Gross Amount Before Specific Provision) 2.779 4.839 7.333 Restructured Loans and Other Receivables 2.116 2.344 3.966 Rescheduled Loans and Other Receivables 663 2.495 3.367
5.10.2. Information on Movement of Non-Performing Loans:
III Group IV Group V Group Loans and Loans and Receivables with Uncollectible Loans Receivables with Doubtful and Receivables Limited Collectibility Collectability Ending Balance of Prior Period 42.035 90.907 314.209 Additions in the Current Period (+) (*) 504.261 10.488 45.527 Transfer from Other NPL Accounts (+) - 231.489 133.298 Transfer to Other NPL Accounts (-) (231.489) (133.298) - Collections in the Current Period (-) (*) (103.531) (52.762) (68.945) Write offs (-) - - (166.459) Corporate and Commercial Loans - - (111.642) Retail Loans - - (1.647) Credit Cards - - (51.179) Other - - (1.991) Ending Balance of the Current Period 211.276 146.824 257.630 Specific Provisions (-) (40.541) (62.435) (202.612) Net Balance at the Balance Sheet 170.735 84.389 55.018
(*) Movements between loan groups presented double within additions and collections in the interim financial reporting periods are offset by the year end.
209 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.10.3. Information on Foreign Currency Non-Performing Loans and Other Receivables:
III Group IV Group V Group Loans and Loans and Receivables with Uncollectible Loans Receivables with Doubtful and Receivables Limited Collectibility Collectability Current Period Ending Balance - - 1.697 Specific Provisions (-) - - (1.257) Net Balance at the Balance Sheet - - 440 Prior Period Ending Balance - - 1.478 Specific Provisions (-) - - (1.087) Net Balance at the Balance Sheet - - 391
5.10.4. Gross and Net Amounts of Non-Performing Loans with Respect to User Groups:
III Group IV Group V Group Loans and Loans and Receivables with Uncollectible Loans Receivables with Doubtful and Receivables Limited Collectability Collectability Current Period (Net) Loans to Individuals and Corporates (Gross) 211.276 146.824 257.630 Specific Provisions (-) (40.541) (62.435) (202.612) Loans to Real Persons and Legal Entities (Net) 170.735 84.389 55.018 Banks (Gross) - - - Specific Provisions (-) - - - Banks (Net) - - - Other Loans and Receivables (Gross) - - - Specific Provisions (-) - - - Other Loans and Receivables (Net) - - -
Prior Period (Net) Loans to Individuals and Corporates (Gross) 42.035 90.907 314.209 Specific Provisions (-) (6.737) (37.039) (259.840) Loans to Individuals and Corporates (Net) 35.298 53.868 54.369 Banks (Gross) - - - Specific Provisions (-) - - - Banks (Net) - - - Other Loans and Receivables (Gross) - - - Specific Provisions (-) - - - Other Loans and Receivables (Net) - - -
210 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.10.5. Non-Performing Loans and Main Guidelines of Liquidation Process for Loans and Receivables: If the Parent Bank has collateral components stated in Article 9 of the Communiqué on “Determining the Nature of Loan and Other Receivable Provisions Allocated by Banks and Procedures and Principles of Allocating Provisions”, such components are immediately liquidated by applying managerial or legal procedures. In the absence of collateral component, even if there is an indication of insolvency, the Parent Bank reviews the financial intelligence of the debtor systematically to determine subsequently acquired property holdings and applies the legal procedures. Prior and subsequent to the legal procedures, as a result of reviews performed regarding the financial information provided, the Parent Bank intends to liquidate its loans and other receivables from the companies that have potential development in the production and consequent contribution to the economy by means of the rescheduled agreements.
5.10.6. Explanation on Write–off Policy: Provision allocations arising from during or after the transfer of any loan receivables to “Non-performing loans” are performed by the Parent Bank’s Loan Monitoring Department within the framework of the Banking Regulations and Supervisory Agency. Additionally, loans are written-off against the assets, at least once a year, by the Credit Monitoring Agency to the extent that at least one of the following below is met and provision is fully made for all non-performing loans in accordance with the decision made by the Board of Directors: - Receivables with the document obtained from Collections Agency stating that the receivable cannot be followed up or; - Receivables assessed as uncollectible within existing conditions by the Law Department although the collection follow up process is going on.
5.11. Other Explanations and Disclosures: The information related to loan quality is stated as below:
Neither past due nor Past due but not Past due and Current Period – December 31, 2011 Total Impaired Impaired Impaired Loans (*) Corporate and Commercial Lending 5.496.990 385.712 287.399 6.170.101 Small Business Lending 3.881.933 512.141 263.544 4.657.618 Consumer Lending 1.616.278 13.240 7.009 1.636.527 Credit Cards 929.635 7.700 57.778 995.113 Total 11.924.836 918.793 615.730 13.459.359
(*) The Group classifies small medium entities (“SME”) considering the criteria set out in the Council of Ministers’ decision dated November 18, 2005 and numbered 25997 published in the Official Gazette and the Communiqué on “Descriptions, Nature and Classification of Small Medium Entities”.
Neither past due nor Past due but not Past due and Prior Period – December 31, 2010 Total Impaired Impaired Impaired Loans (*) Corporate and Commercial Lending 4.797.616 541.809 67.751 5.407.176 Small Business Lending 3.468.651 319.019 275.436 4.063.106 Consumer Lending 913.669 16.660 6.790 937.119 Credit Cards 723.690 30.147 97.174 851.011 Total 9.903.626 907.635 447.151 11.258.412
(*) The Group classifies small medium entities (“SME”) considering the criteria set out in the Council of Ministers’ decision dated November 18, 2005 and numbered 25997 published in the Official Gazette and the Communiqué on “Descriptions, Nature and Classification of Small Medium Entities”.
211 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
The details of loan guarantees and leasing portfolio are stated as below:
Neither past due nor Past due but not Current Period (*)(**)(***) Past due and Impaired Total Impaired Impaired Residential, Commercial or Industrial 4.812.274 365.376 99.616 5.277.266 Real Estates Financial Assets 516.885 113.870 15.500 646.255 Other 1.392.830 168.083 120.786 1.681.699 Total 6.721.989 647.329 235.902 7.605.220
(*) Individual loan agreements, general loan agreements, foreign currency cheques, suretyships, customer cheques and notes and other guarantees are not included in the table above. (**) The table above is prepared by taking into consideration the lowest value presented as a result of the comparison made between the outstanding loan balance as of the balance sheet date and the lower of the net amount reached at the fair value of collaterals stated in the corresponding expertise reports or the net collateral amount less any pledges or incumbrances on such amounts, if any. (***) Guarantee details of the credit portfolio are determined based on the “Measurement and Assessment of Capital Adequacy of Banks” published on November 1, 2006 in the Official Gazette numbered 26333.
Neither past due nor Past due but not Prior Period (*)(**)(***) Past due and Impaired Total Impaired Impaired Residential, Commercial or Industrial 2.806.286 338.661 83.668 3.228.615 Real Estates Financial Assets 337.821 112.982 25 450.828 Other 1.220.199 184.860 74.116 1.479.175 Total 4.364.306 636.503 157.809 5.158.618
(*) Individual loan agreements, general loan agreements, foreign currency cheques, surety ships, customer cheques and notes and other guarantees are not included in the table above. (**) The table above is prepared by taking into consideration the lowest value presented as a result of the comparison made between the outstanding loan balance as of the balance sheet date and the lower of the net amount reached at the fair value of collaterals stated in the corresponding expertise reports or the net collateral amount less any pledges or in cumbrances on such amounts, if any. (***) Guarantee details of the credit portfolio are determined based on the “Measurement and Assessment of Capital Adequacy of Banks” published on November 1, 2006 in the Official Gazette numbered 26333.
Aging analysis of past due but not impaired loans per classes of financial statements is stated as below:
Current Period – December Less than 30 More than 91 31-60 Days 61-90 Days Total 31, 2011 Days (*) Days Loans and Advances to Customers Corporate Lending 304.216 61.091 20.405 - 385.712 SME Lending 388.047 49.282 74.812 - 512.141 Consumer Lending 2.126 6.729 4.385 - 13.240 Credit Cards 1.730 5.970 - - 7.700 Finance Lease Receivables 1.384 - - - 1.384 Total 697.503 123.072 99.602 - 920.177
(*) The Parent Bank follows up the entire loan balance having less than 30 days overdue in the watch list based on conservatism principal and TRY 621.618 Thousand of such amount does not have payment overdue as of December 31, 2011 (Finance Lease Receivables: TRY 1.384 Thousand)
Prior Period – December Less than 30 More than 91 31-60 Days 61-90 Days Total 31, 2010 Days (*) Days Loans and Advances to Customers Corporate Lending 443.294 32.530 65.985 - 541.809 SME Lending 175.747 43.752 99.520 - 319.019 Consumer Lending 914 9.352 6.394 - 16.660 Credit Cards 405 21.263 8.479 - 30.147 Finance Lease Receivables 33 2 285 - 320 Total 620.393 106.899 180.663 - 907.955
(*) The Parent Bank follows up the entire loan balance having less than 30 days overdue in the watch list based on conservatism principal and TRY 608.548 Thousand of such amount does not have payment overdue as of December 31, 2010 (Finance Lease Receivables: TRY 39 Thousand).
212 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
5.12. Other Explanations and Disclosures: Explanations on the loans and other receivables of the Parent Bank for which the payment schedules are revised as per the agreement: Based on the Article 4 of the Communiqué “Methods and Principles for the Determination of Loans and Other Receivables to be Reserved for and Allocation of Reserves”, the number of loans, total amount and extension periods for which the payment schedules are revised after May 28, 2011 are as follows: Extension Period Up to 1 1-3 Months 3-12 Months 1-5 Years Over 5 Years Total Month Loans Quantity - 1 4 9 2 16 Amount - 54 338 1.871 22.948 25.211
6. Information on Held-to-Maturity Investments (Net)
6.1. Information on Financial Assets Blocked/Given as Collateral or Subject to Repurchase Agreements:
6.1.1. Information on Held to Maturity Investments Given as Collateral or Blocked: None.
6.1.2. Held to Maturity Investments Subject to Repurchase Agreements: As of December 31, 2011, the Bank has revenue sharing certificates in “Held to Maturity Investments” portfolio which are subject to repurchase agreements with the Central Bank of the Republic of Turkey amounting to TRY 42.000 Thousand nominal value (December 31, 2010: None) and TRY 43.269 Thousand fair value (December 31, 2010: None).
6.2. Information on Government Bonds Classified as Held to Maturity Investments: The Group has TRY 77.053 Thousand of revenue sharing certificate as of December 31, 2011 (December 31, 2010: TRY 77.032 Thousand).
Current Period Prior Period TRY FC TRY FC Government Bonds - - - - Treasury Bill - - - - Other 77.053 - 77.032 - Total 77.053 - 77.032 -
6.3. Information on Investments Held-to-Maturity: Current Period Prior Period TRY FC TRY FC Debt Securities 77.053 - 77.032 - Quoted on a Stock Exchange 51.446 - 51.435 - Not Quoted (*) 25.607 - 25.597 - Impairment Provision (-) - - - - Total 77.053 - 77.032 -
(*) Includes debt securities that are not traded in the stock market at the end of the related periods although they are listed.
6.4. Movement of Held-to-Maturity Investments: Current Period Prior Period Beginning Balance 77.032 76.460 Foreign Currency Differences on Monetary Assets - - Purchases During Year - 50.000 Disposals through Sales and Redemptions - (50.000) Impairment Provision (-) - - Valuation Effects 21 572 Closing Balance 77.053 77.032
213 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7. Information on Associates
7.1. Information on the Consolidated Associates: The Parent Bank’s Share The Parent Bank’s Risk Company Name Address (City/ Country) Percentage, if Different-Voting Group Share Percentage (%) Percentage (%) (1) Yeni Mağazacılık A.Ş. (*) İstanbul/Turkey 21,84% 21,84% (2) Landmark Holding A.Ş. (*) İstanbul/Turkey 21,84% 21,84% (3) Kredi Garanti Fonu A.Ş. Ankara/Turkey 1,67% 1,67%
(*) The Parent Bank participated in Yeni Mağazacılık A.Ş. and in Landmark Holding A.Ş. with the Financing Method for Participation Banks explained in the regulation No: 19 regarding “Banks’ Lending Transactions” published and became effective in the Official Gazette numbered 26333, dated November 1, 2006 by means of joint investment method. These are recorded as associates in accordance with the Uniform Chart of Accounts published in the Official Gazette numbered 26415 and dated January 26, 2007.
Income from Profit Current Total Fixed Marketable Prior Period Total Assets Equity Share Period Fair Value Assets Securities Profit/Loss Income Profit/Loss Portfolio (1) (*) 277.131 (116.811) 84.490 6 - (93.799) (86.383) (**) 175.277 (2) (*) 43.453 43.231 43.402 - - (192) (1.486) (***) 56.966 (3) (*) 207.899 201.048 2.904 3.979 - 7.672 7.632 -
(*) Financial information is provided from the associate’s unaudited financial statements as of December 31, 2011. (***) It is expertise value of the Bank’s associate, Yeni Mağazacılık A.Ş., as of February 4, 2010. (****) It is the expertise value of the Bank’s associate, Landmark Holding A.Ş., as of February 9, 2010.
7.2. Information on Associates:
The Parent Bank’s Share The Parent Bank’s Risk Company Name Address (City/ Country) Percentage, if Different-Voting Group Share Percentage (%) Percentage (%) (1) Tamweel Africa Holding S.A. (*) Dakar/Senegal 40,00% 40,00%
(*) As of February 4, 2010, the Bank has paid for TRY 21.548 Thousand and as a consequence, became owner of 40% of Tamweel Africa Holding S.A. that is owned by the Islamic Corporation for the Development of the Private Sector (“ICD”) which is a group establishment of the Islamic Development Bank (“IDB”). TRY 9.077 Thousand and TRY 4.900 Thousand has paid for capital increase respectively on June 8, 2010 and October 3, 2011. As of the reporting date capital registry process has not been finalized yet.
Income from Profit Current Total Fixed Marketable Prior Period (*) Total Assets Equity Share Period Fair Value Assets Securities Profit/Loss Income Profit/Loss Portfolio (1) 843.063 112.165 19.622 35.127 - 8.625 6.117 -
(*) Financial information is provided from the associate’s audited financial statements as of December 31, 2011.
7.3. Movement of the Consolidated Associates:
Current Period Prior Period Balance at the Beginning of the Period 30.625 - Movements in Period 4.900 30.625 Purchases 4.900 30.625 Free Shares Obtained - - Dividends from Current Year Income - - Sales - - Revaluation Increase - - Provision for Diminution in Value - - Balance at the End of the Period 35.525 30.625 Capital Commitments - - Share Percentage at the End of the Period (%) 40,00% 40,00%
(*)Tamweel Africa Holding S.A., of which acquisition cost is TRY 35.525 Thousand, has been accounted for under equity method and recognized at TRY 45.900 Thousand in the accompanying consolidated financial statements (December 31, 2010: TRY 31.166 Thousand).
214 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7.4. Sectoral Information on the Financial Associates and the Related Carrying Amounts: Current Period Prior Period Banks - - Insurance Companies - - Factoring Companies - - Leasing Companies - - Finance Companies - - Other Subsidiaries 35.525 30.625
7.5. Quoted on the Stock Exchange: None.
8. Information on Subsidiaries (Net)
8.1. Information on Unconsolidated Subsidiaries: The Parent Bank’s share The Parent Bank’s risk Address (City/ Company Name percentage, if different- group share percentage Country) voting percentage (%) (%) (1) Nil Yönetim Hizmetleri Tur. San. ve Tic. A.Ş. Ankara/Turkey 99,93% 99,93% (2) Asya Kart Teknoloji Hizmetleri A.Ş. İstanbul/Turkey 99,50% 99,50% (3) GH Sultanbeyli Gayrimenkul ve Proje Geliştirme A.Ş. İstanbul/Türkiye - 99,92%
Income from Profit Current Total Fixed Marketable Prior Period (*) Total Assets Equity Share Period Fair Value Assets Securities Profit/Loss Income Profit/Loss Portfolio (1) 73.218 64.004 1.784 91 - 149 414 - (2) 5 2 - - - 9 (9) - (3) 30.661 27.050 24.710 - - (492) (3.819) 27.564
(*) Financial information is provided from the unaudited financial statements of subsidiaries as of December 31, 2011.
8.2. Information on Consolidated Subsidiaries: Bank’s share percentage, if The Parent Bank’s risk Address (City/ Company Name different-voting group share Country) percentage (%) percentage (%) (1) Asya Emeklilk ve Hayat A.Ş. (*) İstanbul\Turkey 97,99% 97,99% (2) Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti. İstanbul\Turkey 95,00% 95,00% (3) Işık Sigorta A.Ş. İstanbul\Turkey 65,42% 65,42% (4) Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. İstanbul\Turkey 22,94% 69,39%
(*) The Parent Bank has become the shareholder of Asya Emeklilik ve Hayat A.Ş. established on July 1, 2011. Income from Profit Current Total Fixed Marketable Prior Period (*) Total Assets Equity Share Period Fair Value Assets Securities Profit/Loss Income Profit/Loss Portfolio (1) 9.002 8.770 472 255 (5) (1.221) - - (2) 211 208 - 12 - 1 5 - (3) 205.491 75.258 1.468 9.056 1.236 5.786 1.106 (**) 190.616 (4) 137.239 108.422 34.728 375 - (2.054) 842 (***) 192.051
(*) Financial information is provided from the audited financial statements of subsidiaries as December 31, 2011. (**) It is expertise value of the Bank’s subsidiary, Işık Sigorta A.Ş., as of February 4, 2010. (***)VAT included fair value is TRY 192.051 Thousand, including land, per expertise appraisal dated January 26, 2010.
215 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
8.3. Movement of the Consolidated Subsidiaries: Current Period Prior Period Balance at the Beginning of the Period 88.011 82.824 Movements in Period 9.798 5.153 Purchases 9.798 5.153 Free Shares Obtained - - Dividends from Current Year Income - - Sales - - Revaluation Increase - - Provision for Impairment Addition / (Reversal) - - Effect of Change at Consolidation Scope - 34 Balance at the End of the Period 97.809 88.011 Capital Commitments (*) 9.798 - Share Percentage at the End of the Period (%) 22,94%-97,99% 22,94%-95,00%
(*) It consists of TRY 9.798 Thousand capital commitment to the Bank’s subsidary, Asya Emeklilik ve Hayat A.Ş..
8.4. Sectoral Information on the Consolidated Financial Subsidiaries and the Related Carrying Amounts:
Subsidiaries Current Period Prior Period Banks - - Insurance Companies 50.154 50.154 Factoring Companies - - Leasing Companies - - Finance Companies - - Other Subsidiaries 47.655 37.857
8.5. Subsidiaries Quoted on the Stock Exchange: None.
9. Information on Entities under Common Control None.
10. Information on Finance Lease Receivables (Net)
10.1 Presentation of Finance Lease Receivables According to Their Remaining Maturities:
Current Period Prior Period Gross Net Gross Net Less than 1 Year 77.197 58.572 5.562 4.820 1 to 4 Years 183.888 139.523 106.620 92.391 More than 4 Years 131.344 99.656 9.532 8.260 Total 392.429 297.751 121.714 105.471
10.2. Information on Net Investments in Finance Leases:
Current Period Prior Period Gross Receivable from Finance Leases 392.429 121.714 Unearned Finance Lease Income (-) (94.678) (16.243) Net Receivable from Finance Leases 297.751 105.471
11. Derivative Financial Assets for Hedging Purposes None.
216 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
12. Information on Tangible Assets
Leased Other Assets to be Buildings Tangible Vehicles Tangible Total Disposed off Assets Assets (*) Cost Opening Balance - January 1, 2011 12.454 36.146 2.492 226.189 209.093 486.374 Additions - - 815 177.100 31.731 209.646 Disposals (8.123) (3.523) (734) (51.161) (6.907) (70.448) Transfers (**) - - (232) (2.274) (408) (2.914) Impairment (Losses) / Reversal (***) (111) - - 1.228 - 1.117 Closing Balance - December 31, 2011 4.220 32.623 2.341 351.082 233.509 623.775
Accumulated Depreciation (-) Opening Balance - January 1, 2011 2.442 26.698 557 6.138 96.213 132.048 Depreciation Expense 282 5.970 393 5.378 37.864 49.887 Accumulated Depreciation of Disposals (1.970) (3.387) (144) (1.649) (5.792) (12.942) Transfers (**) - - 4 (76) (256) (328) Impairment (Losses) / Reversal (***) - - - 392 - 392 Closing Balance - December 31, 2011 754 29.281 810 10.183 128.029 169.057
Net Book Value - December 31, 2010 10.012 9.448 1.935 220.051 112.880 354.326
Net Book Value - December 31, 2011 3.466 3.342 1.531 340.899 105.480 454.718
(*) Other tangible fixed assets comprise leasehold improvements, safety box, office equipment, furniture and other fixed assets. (**) TRY 3.117 Thousand of the balance is transferred from assets held for sale to tangible fixed assets due to not being disposed off within one year; TRY 5.598 Thousand of real estates to be disposed off have met the definition of non-current assets held for sale and have been transferred to assets held for sale. In the current period, tangible assets amounting to TRY 172 Thousand have been transferred to intangible assets and investment properties amounting to TRY 67 Thousand have been transferred to tangible assets. (***) In the current period, TRY 1.577 Thousand additional impairment has been provided for assets to be disposed off and TRY 2.413 Thousand impairment has been reversed due to disposals. In the current period, TRY 111 Thousand additional impairment has been recognized for buildings.
Leased Other Assets Held Buildings Tangible Vehicles Tangible Total for Resale Assets Assets (*) Cost Opening Balance - January 1, 2010 12.112 38.957 1.760 186.864 167.563 407.256 Additions - - 1.873 104.400 45.905 152.178 Disposals - (2.811) (1.141) (69.279) (4.375) (77.606) Transfers (**) - - - (1.234) - (1.234) Impairment (Losses) / Reversal 342 - - 5.438 - 5.780 Closing Balance - December 31, 2010 12.454 36.146 2.492 226.189 209.093 486.374
Accumulated Depreciation (-) Opening Balance - January 1, 2010 2.127 21.653 845 4.127 67.511 96.263 Depreciation Expense 309 7.380 416 3.691 32.683 44.479 Accumulated Depreciation of Disposals - (2.335) (704) (1.875) (3.981) (8.895) Transfers - - - (95) - (95) Impairment (Losses) / Reversal 6 - - 290 - 296 Closing Balance - December 31, 2010 2.442 26.698 557 6.138 96.213 132.048
Net Book Value - December 31, 2009 9.985 17.304 914 182.737 100.054 310.994
Net Book Value - December 31, 2010 10.012 9.448 1.935 220.051 112.880 354.326
(*) Other tangible fixed assets comprise leasehold improvements, safety box, office equipments, furniture and other fixed assets. (**) TRY 7.205 Thousand of the balance is transferred from assets held for sale to tangible fixed assets due to not being disposed off within one year, TRY 8.344 Thousand of real estates to be disposed off have met the definition of non-current assets held for sale and have been transferred to assets held for sale. (***)During the period, TRY 1.619 Thousand additional impairment has been provided for assets to be disposed off and TRY 7.103 Thousand impairment has been reversed due to disposals.
217 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
13. Information on Intangible Assets
13.1. Opening and Ending Book Values and Accumulated Depreciation Balances:
Current Period Prior Period Book Value 26.716 20.889 Accumulated Depreciation (14.589) (10.451) Net Book Value 12.127 10.438
13.2. Intangible Assets Movement Table:
Rights Other Intangible Assets Total Cost Opening Balance- January 1, 2011 144 20.745 20.889 Additions 1.148 4.249 5.397 Transfers (*) 430 - 430 Disposals - - - Closing Balance- December 31, 2011 1.722 24.994 26.716 Accumulated Amortization (-) Opening Balance- January 1, 2011 137 10.314 10.451 Amortization Expense 225 3.655 3.880 Transfers (*) 258 - 258 Disposals - - - Closing Balance- December 31, 2011 620 13.969 14.589
Net Book Value- December 31, 2010 7 10.431 10.438
Net Book Value- December 31, 2011 1.102 11.025 12.127
(*) In the current period, TRY 172 Thousand of the balance from tangible assets is transferred to intangible assets.
Rights Other Intangible Assets Total Cost Opening Balance- January 1, 2010 143 17.347 17.490 Additions 1 3.475 3.476 Disposals - (77) (77) Closing Balance- December 31, 2010 144 20.745 20.889 Accumulated Amortization (-) Opening Balance- January 1, 2010 132 7.105 7.237 Amortization Expense 5 3.276 3.281 Disposals - (67) (67) Closing Balance- December 31, 2010 137 10.314 10.451
Net Book Value- December 31, 2009 11 10.242 10.253
Net Book Value- December 31, 2010 7 10.431 10.438
13.3. Information on Goodwill: As of December 31, 2011, goodwill amounts to TRY 4.111 Thousand (December 31, 2010: TRY 4.111 Thousand).
218 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
14. Explanations on Investment Properties Leased Other Buildings Lands Tangible Vehicles Tangible Total Assets Assets Cost Opening Balance - January 1, 2011 33.960 4.948 2.139 51 8.906 50.004 Additions 184 - - - 194 378 Disposals (281) - - - - (281) Transfers (*) - - - (51) (22) (73) Impairment Expense (75) - - - - (75) Closing Balance - December 31, 2011 33.788 4.948 2.139 - 9.078 49.953
Accumulated Depreciation (-) Opening Balance - January 1, 2011 3.469 - 2.139 4 7.580 13.192 Depreciation Expense 681 - - - 455 1.136 Disposals (10) - - - - (10) Transfers (*) - - - (4) (2) (6) Closing Balance - December 31, 2011 4.140 - 2.139 - 8.033 14.312
Net Book Value - December 31, 2010 30.491 4.948 - 47 1.326 36.812
Net Book Value - December 31, 2011 29.648 4.948 - - 1.045 35.641
(*) In the current period, TRY 67 Thousand of the balance from investment properties is transferred to tangible assets.
As of December 31, 2011, fair value of investment properties amounts to TRY 52.915 Thousand (December 31, 2010: TRY 50.199 Thousand).
Leased Other Buildings Lands Tangible Vehicles Tangible Total Assets Assets Cost Opening Balance - January 1, 2010 33.779 4.948 2.139 - 11.597 52.463 Additions 241 - - 51 521 813 Disposals - - - - (3.212) (3.212) Impairment Expense (60) - - - - (60) Closing Balance - December 31, 2010 33.960 4.948 2.139 51 8.906 50.004
Accumulated Depreciation (-) Opening Balance - January 1, 2010 2.786 - 2.139 - 9.565 14.490 Depreciation Expense 683 - - 4 601 1.288 Disposals - - - - (2.586) (2.586) Closing Balance - December 31, 2010 3.469 - 2.139 4 7.580 13.192
Net Book Value - December 31, 2009 30.993 4.948 - - 2.032 37.973
Net Book Value - December 31, 2010 30.491 4.948 - 47 1.326 36.812
219 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
15. Explanations on Deferred Tax Asset As of December 31, 2011, deferred tax asset calculated as the net amount according to the temporary differences, except for general loan loss provision and provision for possible risks is TRY 21.947 Thousand. As noted in disclosure 8.4 of section V.II, for purpose of consolidated financial statements deferred taxes arising from different consolidated subsidiaries are presented separately in assets and liabilities. Therefore, TRY 21.955 Thousand deferred tax assets and TRY 8 Thousand deferred tax liabilities are presented separately in the accompanying consolidated financial statements (December 31, 2010: TRY 10.754 Thousand deferred tax assets). Current Period Deferred Tax Base Deferred Tax Asset/(Liability) Retirement Pay Provision and Short-Term Employee Benefits 29.909 5.982 Other Provisions 15.835 3.167 Deferred Commission Income 60.881 12.176 Tangible Assets Tax Base Differences (14.064) (2.813) Valuation of Financial Assets 16.133 3.227 Other 1.042 208 Deferred Tax Asset/(Liability), net 109.736 21.947
Prior Period Deferred Tax Base Deferred Tax Asset/(Liability) Retirement Pay Provision and Short-Term Employee Benefits 23.898 4.780 Other Provisions 24.769 4.954 Deferred Commission Income 33.145 6.629 Tangible Assets Tax Base Differences (22.911) (4.582) Valuation of Financial Assets (5.038) (1.008) Other (94) (19) Deferred Tax Asset/(Liability), net 53.769 10.754
Movement of the net deferred tax asset/ (liability) as of December 31, 2011 and December 31, 2010 is stated as below:
Current Period Prior Period Deferred Tax Asset, January 1 10.754 5.946 Deferred Tax Recognized Directly Under Equity 5.083 (953) Deferred Tax Benefit /(Charge) 6.110 5.761 Deferred Tax Asset/(Liability), net 21.947 10.754
16. Information on Assets Held for Sale Assets held for sale consist of tangible assets which are obtained from non-performing loans and they are recognized as required in accordance with the prevailing Communiqué of “Principles and Procedures on Bank’s Disposal of Precious Metals and Assets Held for Sale” published on November 1, 2006 in the Official Gazette numbered 26333 in the consolidated financial statements. As of December 31, 2011, assets held for sale amounts to TRY 8.724 Thousand (December 31, 2010: TRY 6.509 Thousand).
Current Period Prior Period Opening Balance- January 1 6.509 9.196 Additions 3.239 - Disposals (3.468) (3.791) Transfers (Net) (*) 2.481 1.139 Impairment (**) (37) (35) Closing Balance, 31 December 8.724 6.509
(*)TRY 3.117 Thousand of the balance is transferred from assets held for sale to tangible fixed assets due to not being disposed off within one year; TRY 5.598 Thousand of real estates to be disposed off have met the definition of non-current assets held for sale and have been transferred to assets held for sale. (**)TRY 244 Thousand additional impairment has been recognized and TRY 209 Thousand impairment has been reversed due to disposals in the prior.
17. Information on Other Assets As of December 31, 2011, other assets amount to TRY 220.248 Thousand. Other assets account does not exceed 10% of the total assets (December 31, 2010: TRY 217.921 Thousand).
220 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
II. Explanations and Disclosures Related to the Consolidated Liabilities
1.1. Information on Maturity Structure of Deposits:
Accumulated Up to 1 Up to 3 Up to 6 Up to 9 Up to 1 1 Year Current Period Demand Profit Sharing Total Month Months Months Months Year and Over Accounts I. Real Person Current 560.652 ------560.652 Deposits-TRY II. Real Person Profit Sharing - 1.552.244 799.747 163.642 - 121.309 2.314.661 - 4.951.603 Accounts-TRY III. Other Current Accounts-TRY 950.762 ------950.762 Public Sector 27.575 ------27.575 Commercial Sector 893.448 ------893.448 Other Institutions 28.391 ------28.391 Commercial and Other 1.183 ------1.183 Institutions Banks and Finance Houses 165 ------165 Central Bank ------Domestic Banks ------Foreign Banks ------Banks 165 ------165 Other ------IV. Profit Sharing Accounts-TRY - 223.983 265.225 35.508 - 17.430 713.837 - 1.255.983 Public Sector - 82 10 81 - - 2.590 - 2.763 Commercial Sector - 209.408 258.996 13.819 - 5.060 598.282 - 1.085.565 Other Institutions - 14.474 6.139 21.608 - 12.370 112.215 - 166.806 Commercial and Other - 19 80 - - - 750 - 849 Institutions Banks ------V.Real Person Current 236.574 ------236.574 Deposits-FC VI. Real Person Profit Sharing - 390.367 386.765 70.884 - 101.823 807.731 - 1.757.570 Accounts-FC VII. Other Current Accounts-FC 420.337 ------420.337 Commercial Residents in 350.214 ------350.214 Turkey Commercial Residents in 28.486 ------28.486 Abroad Banks 41.637 ------41.637 Central Bank ------Domestic Banks ------Foreign Banks 15.737 ------15.737 Banks 25.900 ------25.900 Other ------VIII.Profit Sharing Accounts- FC - 198.675 264.490 91.093 - 59.129 594.069 - 1.207.456 Public Sector - 30 - - - - 46 - 76 Commercial Sector - 147.460 262.053 12.296 - 35.292 566.342 - 1.023.443 Other Institutions - 634 342 78.772 - - 23.335 - 103.083 Commercial and Other - 1.987 10 25 - 1.210 1.865 - 5.097 Institutions Banks and Finance Houses - 48.564 2.085 - - 22.627 2.481 - 75.757 IX. Precious Metal Deposits 951.984 ------951.984 X. Profit Sharing Accounts ------Special Fund Pools TRY Residents in Turkey ------Residents Abroad ------XI. Profit Sharing Accounts ------Special Fund Pools-FC Residents in Turkey ------Residents Abroad ------Total (I+II+…..+IX+X+XI) 3.120.309 2.365.269 1.716.227 361.127 - 299.691 4.430.298 - 12.292.921
221 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
Accumulated Up to 1 Up to 3 Up to 6 Up to 9 Up to 1 1 Year Prior Period Demand Profit Sharing Total Month Months Months Months Year and Over Accounts I. Real Person Current 487.918 ------487.918 Deposits-TRY II. Real Person Profit Sharing - 1.851.180 1.175.698 254.717 - 190.314 1.471.293 - 4.943.202 Accounts-TRY III. Other Current Accounts-TRY 876.977 ------876.977 Public Sector 90.765 ------90.765 Commercial Sector 769.955 ------769.955 Other Institutions 14.455 ------14.455 Commercial and Other 829 ------829 Institutions Banks and Finance Houses 973 ------973 Central Bank ------Domestic Banks ------Foreign Banks ------Banks 973 ------973 Other ------IV. Profit Sharing Accounts-TRY - 459.845 500.418 58.618 - 12.531 249.176 - 1.280.588 Public Sector - 5 64 - - - - - 69 Commercial Sector - 448.690 458.319 25.626 - 8.679 230.771 - 1.172.085 Other Institutions - 10.653 41.960 32.992 - 3.852 17.569 - 107.026 Commercial and Other - 497 75 - - - 836 - 1.408 Institutions Banks ------V.Real Person Current 261.028 ------261.028 Deposits-FC VI. Real Person Profit Sharing - 523.290 544.120 122.153 - 132.089 474.593 - 1.796.245 Accounts-FC VII. Other Current Accounts-FC 329.874 ------329.874 Commercial Residents in 302.245 ------302.245 Turkey Commercial Residents in 20.243 ------20.243 Abroad Banks 7.386 ------7.386 Central Bank ------Domestic Banks ------Foreign Banks 5.172 ------5.172 Banks 2.214 ------2.214 Other ------VIII.Profit Sharing Accounts- FC - 252.706 451.406 120.325 - 35.627 127.227 - 987.291 Public Sector - 52 ------52 Commercial Sector - 231.416 441.254 37.631 - 34.664 112.202 - 857.167 Other Institutions - 588 5.405 79.313 - - 11.712 - 97.018 Commercial and Other - 20.629 211 3.381 - 963 3.313 - 28.497 Institutions Banks and Finance Houses - 21 4.536 - - - - - 4.557 IX. Precious Metal Deposits 123.372 ------123.372 X. Profit Sharing Accounts ------Special Fund Pools TRY Residents in Turkey ------Residents Abroad ------XI. Profit Sharing Accounts ------Special Fund Pools-FC Residents in Turkey ------Residents Abroad ------Total (I+II+…..+IX+X+XI) 2.079.169 3.087.021 2.671.642 555.813 - 370.561 2.322.289 - 11.086.495
222 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
1.2. Current and Participation Accounts Attributable to Real Entities/Persons Under the Guarantee of Saving Deposit Insurance Fund Exceeding the Limit of the Deposit Insurance Fund: Under the Guarantee of Saving Deposit Exceeding the Limit of Saving Deposit Insurance Insurance Current Period Prior Period Current Period Prior Period Real Persons Current and Profit Sharing Accounts that 3.825.673 3.503.770 4.577.635 4.036.931 are not Subject to Commercial Activities TRY Accounts 2.775.039 2.854.573 2.737.187 2.545.285 FC Accounts 1.050.634 649.197 1.840.448 1.491.646 Foreign Branches’ Deposits Under Foreign - - - - Authorities’ Insurance Off-shore Banking Regions’ Deposits Under Foreign - - - - Authorities’ Insurance
1.3. Current and Profit Sharing Accounts which are not under the Guarantee of Deposit Insurance Fund: Current Period Deposits and Other Accounts held at Foreign Branches - Deposits and Other Accounts held by Shareholders and their Relatives 26.121 Deposits and Other Accounts of the Chairman and Members of Board of Directors, Chief Executive Officer, Senior 32.769 Executive Officers and their Relatives Deposits and Other Accounts held as Assets subject to the Crime defined in the Article 282 of the Turkish Criminal - Code no. 5237 dated 26 September 2004 Deposits at Depository Banks established for Off-Shore Banking Activities in Turkey - Total 58.890
2. Information on Derivative Financial Liabilities Held for Trading As of December 31, 2011, derivative financial liabilities held for trading amounts to TRY 11.715 Thousand (December 31, 2010: TRY 5.397 Thousand). Current Period Önceki Dönem TRY FC TRY FC Forward Transactions (*) - 2.312 - 176 Swap Transactions - 9.403 - 5.221 Futures Transactions - - - - Options - - - - Other - - - - Total - 11.715 - 5.397
(*) Includes forward asset purchase/sale commitments.
3. Information on Borrowings
3.1. Information on Banks and Other Financial Institutions: Current Period Prior Period TRY FC TRY FC Loans from Central Bank of the Republic of Turkey - - - - From Domestic Banks and Institutions 27.357 24.821 28.474 45.096 From Foreign Banks, Institutions and Funds - 1.433.009 - 577.141 Total 27.357 1.457.830 28.474 622.237
3.2. Maturity Analysis of Borrowings: Current Period Önceki Dönem TRY FC TRY FC Short-Term 9.522 938.119 1.272 545.027 Medium-Term and Long-Term 17.835 519.711 27.202 77.210 Total 27.357 1.457.830 28.474 622.237
3.3. Additional Explanation related to the Concentrations of the Parent Bank’s Major Liabilities: None.
223 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
4. Other Liabilities Exceeding 10% of the Balance Sheet Total Excluding Off-Balance Sheet Commitments and the Breakdown of Such Liabilities Constituting at Least 20% of the Grand Total Other liability items amount to TRY 289.793 Thousand and do not exceed 10% of the balance sheet total (December 31, 2010: TRY 275.964 Thousand).
5. Information on Finance Lease Obligations None.
6. Information on Derivative Financial Liabilities for Hedging Purposes None.
7. Explanations on Provisions
7.1. Information on General Loan Loss Provision: Current Period Prior Period General Provisions 131.066 117.204 Provisions for First Group Loans and Receivables 98.783 85.241 Profit Sharing Accounts’ Share 47.908 43.833 The Bank’s Share 50.875 41.408 Other - - Provisions for Second Group Loans and Receivables 15.538 15.711 Profit Sharing Accounts’ Share 3.929 3.084 The Bank’s Share 11.609 12.627 Other - - Provisions for Non Cash Loans 16.745 16.252
7.2. Movement of General Loan Loss Provisions
Current Period Opening Balance - January 1, 2011 117.204 Charge for Period 9.768 Reversal of Prior Period Expenses (3.925) Profit Sharing Accounts Share 8.019 Closing Balance- December 31, 2011 131.066 Prior Period Opening Balance – January 1, 2010 89.368 Charge for Period 22.088 Reversal of Prior Period Expenses (1.561) Profit Sharing Accounts Share 7.309 Closing Balance- December 31, 2010 117.204
7.3. Information on Provision for Foreign Exchange Losses on the Foreign Currency Indexed Loans and Finance Lease Receivables: As of December 31, 2011, the Group’s provision for foreign currency indexed loans amounts to TRY 2.518 Thousand (December 31, 2010: TRY 9.962 Thousand). Provisions for foreign currency indexed loans are offset under the loan balance in the financial statements.
7.4. Information on the Specific Provisions Provided for Unindemnified Non-Cash Loans: As of December 31, 2011, the Group’s specific provision for unindemnified non-cash loans amounts to TRY 21.016 Thousand (December 31, 2010: TRY 9.705 Thousand).
7.5. Explanations on Other Provisions:
7.5.1. Information on Provisions for Potential Risks: one (December 31, 2010: None).
224 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7.5.2. Information on Other Provisions:
Other Provisions Current Period Prior Period Provision for Unindemnified Non-Cash Loans 21.016 9.705 Provision for Credit Cards and Promotion of Banking Services 4.434 4.212 Provision Amount Allocated for Profit-Share Accounts 3.616 - Payment Commitment for Checks 2.001 6.170 Litigation Provision 1.704 1.308 Other (*) 22 16.000 Total 32.793 37.395
(*) Other provisions, provisions for loan portfolio allocated to cover future potential losses include.
7.5.3. Movement of the Retirement Pay Provision:
Current Period Prior Period Opening Balance- January 1 12.697 8.572 Current Service Cost 2.570 2.016 Discount Cost 1.193 906 Benefits Paid (1.547) (954) Settlement/Curtailment/Termination Loss/(Gain) 336 561 Actuarial Loss/(Gain) 981 1.596 Closing Balance 16.230 12.697
The Parent Bank has reflected the employee benefit provision to the financial statements by using actuarial valuation method stated in TAS 19. As of December 31, 2011, the Group provided a provision of TRY 14.032 Thousand for the unused vacation pay (December 31, 2010: TRY 11.566 Thousand).
8. Explanations on Taxes Payable
8.1. Information on Current Tax Liability: As of December 31, 2011, the Group’s corporate tax payable is TRY 10.068 Thousand offsetting the prepaid corporate tax (December 31, 2010: TRY 15.726 Thousand). Current Period Prior Period Provision for Corporate Taxes 60.625 70.887 Prepaid Corporate Tax (50.557) (55.161) Corporate Tax Payable 10.068 15.726
(*) In current period income statement, tax expense for prior period amounts to TRY 215 Thousand is presented in the provision for income tax and other dues account (December 31, 2010: None).
8.2. Information on Taxes Payable:
Current Period Prior Period Corporate Taxes Payable 10.068 15.726 Taxation of Securities 8.599 7.179 Property Tax 638 471 Banking Insurance Transaction Tax (BITT) 11.398 7.089 Foreign Exchange Transaction Tax - - Value Added Tax Payable 448 1.779 Other 11.550 11.271 Total 42.701 43.515
225 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
8.3. Premiums:
Current Period Prior Period Social Security Premiums-Employee 4.748 2.628 Social Security Premiums-Employer 6.614 3.654 Bank Social Aid Pension Fund Premium-Employee - - Bank Social Aid Pension Fund Premium-Employer - - Pension Fund Membership Fees and Provisions-Employee - - Pension Fund Membership Fees and Provisions-Employer - - Unemployment Insurance-Employee 338 186 Unemployment Insurance-Employer 681 372 Other 17 6 Total 12.398 6.846
8.4. Explanations on Deferred Tax Liabilities: As of December 31, 2011, deferred tax liability amounts to TRY 8 Thousand (December 31, 2010: None). Movement of deferred tax liability and temporary differences are disclosed in Note 15 of section V.I.
9. Information on Liabilities Regarding Assets Held for Sale and Discontinued Operations None.
10. Information on Subordinated Loans None.
11. Information on Shareholders’ Equity
11.1. Presentation of Paid-in Capital:
Current Period Prior Period Common Stock 540.000 540.000 Preferred Stock (*) 360.000 360.000
(*) Preferred stockholders have the right to nominate candidates for the Board of Directors and the Audit Committee.
11.2. Paid-in Capital Amount, Explanation as on whether the Registered Share Capital System is Applicable at the Parent Bank, if so, Amount of the Registered Share Capital Ceiling: Registered capital system is not applied in the Parent Bank.
11.3. Share Capital Increases and Their Sources; Other Information on Increased Capital Shares in the Current Period: None.
11.4. Information on Share Capital Increases from Capital Reserves: None.
11.5. Information on Share Capital Increases from Revaluation Funds: None.
11.6. Capital Commitments in the Last Fiscal Year and at the End of the Following Interim Period, General Purpose of These Commitments and Projected Resources Required to Meet These Commitments: None.
226 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
11.7. Indicators of the Parent Bank’s Income, Profitability and Liquidity for Prior Periods and Possible Effects of These Future Assumptions on the Equity due to the Uncertainty of These Indicators: The Parent Bank carries its activities in a high profitable level and retains the major portion of its net profit within equity by means of transfers to reserve accounts and capital increases. Also, the Parent Bank allocates its equity to highly liquid and profit generating assets.
11.8. Summary Information of Privileges Granted To Preferred Stocks: The holders of the preferred stocks have the right to nominate candidates for the Board of Directors and the Audit Committee.
11.9. Explanations on Marketable Securities Value Increase Fund:
Current Period Prior Period From Associates, Subsidiaries, and Entities under Common Control (Joint Vent.) - - Valuation Difference - - Foreign Exchange Difference - - Financial Assets Available for Sale (13.599) 6.732 Valuation Difference (13.599) 6.732 Foreign Exchange Difference - - Total (13.599) 6.732
12. Explanations on Minority Shares
Current Period Prior Period Paid in Capital 98.711 98.510 Share Premium 18.383 18.383 Legal Reserve 412 383 Prior Year Profit or Loss (8.056) (9.057) Net Profit/(Loss) for the Period 326 1.030 Total 109.776 109.249
III. Explanations and Disclosures Related to the Consolidated Off-Balance Sheet Contingencies and Commitments
1. Explanation on Contingent Liabilities
1.1. Nature and Amounts of Irrevocable Loan Commitments:
Current Period Prior Period Asset Purchase-Sale Commitments 1.085.835 115.567 Capital Commitments for Associates and Subsidiaries (*) 10.798 2.000 Loan Granting Commitments 353.633 341.648 Commitments for Credit Card Expenditure Limits 2.066.016 1.661.296 Commitments for Credit Card and Retail Banking Promotions 7.236 7.257 Payment Commitments for Checks 650.723 580.319 Tax and Fund Liabilities from Export Commitments 1.883 1.880 Other Irrevocable Commitments 39.910 55.864 Total 4.216.034 2.765.831
(*) It consists of capital commitment amounting to TRY 9.798 Thousand to the Bank’s subsidary, Asya Emeklilik ve Hayat A.Ş. and TRY 1.000 Thousand to the Bank’s associates, Kredi Garanti Fonu A.Ş. (December 31, 2010: It consists of capital commitment amounting to TRY 2.000 Thousand to the Bank’s associate, Kredi Garanti Fonu A.Ş.).
227 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
1.2. Non-cash Loans Including Guarantees, Bank Acceptances and Avalized Drafts, Collaterals That Qualify as Financial Guarantees and Other Letters of Credit:
1.2.1. Non-cash Loans Including Guarantees, Bank Acceptances and Avalized Drafts, Collaterals That Qualify as Financial Guarantees and Other Letters of Credit: Current Period Prior Period Guarantees 7.556.575 7.938.655 Bank Acceptances and Avalized Drafts 323.970 154.318 Letter of Credits 1.334.519 997.362 Other Guarantees 133.695 136.548 Total 9.348.759 9.226.883
1.2.2. Long Standing Guarantees, Temporary Guarantees, Sureties and Similar Transactions:
Current Period Prior Period Definite Letters of Guarantee 5.222.228 5.891.224 Provisional Letters of Guarantees 759.066 937.000 Suretyships and Similar Transactions 1.575.281 1.110.431 Total 7.556.575 7.938.655
1.3. Total Amount of Non-Cash Loans: Current Period Prior Period Non-cash loans given against achieving cash loans 481.766 134.953 With maturity of 1 year or less than 1 year 6.335 5.405 With maturity of more than 1 year 475.431 129.548 Other non-cash loans 8.866.993 9.091.930 Total 9.348.759 9.226.883
2. Sectoral Risk Concentration of Non-Cash Loans
Current Period Prior Period TRY (%) FC (%) TRY (%) FC (%) Agricultural 59.359 1,47 53.049 1,00 59.075 1,40 21.182 0,42 Farming and Raising Livestock 46.078 1,14 47.705 0,90 46.038 1,09 21.014 0,42 Forestry 12.012 0,30 492 0,01 12.080 0,29 13 0,00 Fishery 1.269 0,03 4.852 0,09 957 0,02 155 0,00 Manufacturing 1.215.112 30,02 2.858.268 53,92 1.285.981 30,43 2.841.818 56,83 Mining 118.431 2,93 236.047 4,45 99.866 2,36 229.697 4,59 Production 665.044 16,43 2.084.712 39,32 706.971 16,73 1.660.230 33,20 Electric, Gas and Water 431.637 10,66 537.509 10,14 479.144 11,34 951.891 19,04 Construction 1.847.275 45,64 1.401.148 26,43 2.006.166 47,47 1.275.631 25,51 Services 848.606 20,97 958.710 18,08 803.842 19,01 821.537 16,42 Wholesale and Retail Trade 212.744 5,26 173.321 3,27 214.921 5,08 166.733 3,33 Hotel, Food and Beverage 69.196 1,71 107.478 2,03 73.912 1,75 58.248 1,16 Services Transportation and 171.298 4,23 399.846 7,54 143.854 3,40 414.787 8,30 Telecommunication Financial Institutions 124.597 3,08 221.315 4,17 81.229 1,92 123.979 2,48 Real Estate and Renting 38.550 0,95 5.832 0,11 87.120 2,06 18.576 0,37 Services Self-Employment Services 51.748 1,28 25.782 0,49 41.260 0,98 9.300 0,19 Education Services 30.567 0,76 7.083 0,13 24.405 0,58 4.199 0,08 Health and Social Services 149.906 3,70 18.053 0,34 137.141 3,24 25.715 0,51 Other 77.155 1,90 30.077 0,57 71.531 1,69 40.120 0,82 Total 4.047.507 100,00 5.301.252 100,00 4.226.595 100,00 5.000.288 100,00
228 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
3. Information on Ist and IInd Group Non-Cash Loans
I st Group II nd Group TRY FC TRY FC Non-Cash Loans 3.939.696 5.202.176 107.811 99.076 Letters of Guarantee 3.892.666 3.462.721 103.447 97.741 Endorsements and Acceptances 25.244 296.584 2.142 - Letters of Credit 758 1.330.286 2.140 1.335 Endorsements - - - - Underwriting Commitments - - - - Factoring Commitments - - - - Other Commitments and Contingencies 21.028 112.585 82 -
4. Information on Derivative Financial Instruments
Derivative Transactions According to Purposes Trading Hedging Current Period Prior Period Current Period Prior Period Type of Trading Transactions Foreign Currency Related Derivative Transactions (I) 1.316.473 926.555 - - Forward Transactions - - - - Swap Transactions 1.316.473 926.555 - - Futures Transactions - - - - Option Transactions - - - - Interest Related Derivative Transactions (II) - - - - Forward Rate Transactions - - - - Interest Rate Swap Transactions - - - - Interest Option Transactions - - - - Futures Interest Transactions - - - - Marketable Securities Call-Put Options (III) - - - - Other Trading Derivative Transactions (IV) - - - - A. Total Trading Derivative Transactions (I+II+III+IV) 1.316.473 926.555 - - Types of Hedging Transactions Fair Value Hedges - - - - Cash Flow Hedges - - - - Net Investment Hedges - - - - B. Total Hedging Related Derivatives - - - - Total Derivative Transactions (A+B) 1.316.473 926.555 - -
229 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
As of December 31, 2011 and December 31, 2010, the breakdown of the Group’s foreign currency forward transactions based on currencies are disclosed below in their TRY equivalents.
Current Period Forward Buy Forward Sell TRY 12.169 9.450 USD 9.533 653.392 EUR 44.327 - GOLD 587.602 - Total 653.631 662.842
Prior Period Forward Buy Forward Sell TRY 268.243 - USD - 463.577 EUR 194.735 - Total 462.978 463.577
As of December 31, 2011, the Group does not have any derivative transactions for the purpose of cash flow hedge.
5. Explanations on Contingent Liabilities and Assets As of the balance sheet date, there are 1.344 ongoing court cases against the Group amounting to TRY 46.092 Thousand and EUR 946 based on the information provided from the legal department of the Group for one of the ongoing court cases mentioned above (December 31, 2010: There were 1.074 ongoing court cases against the Group amounting to TRY 18.583 Thousand, 2.319 USD and EUR 946), provision amounting to TRY 1.704 Thousand has been allocated (December 31, 2010: TRY 1.308 Thousand). In addition to the aforementioned lawsuits, the amount of the loss claim lawsuits from insurance operation is TRY 25.930 Thousand (December 31, 2010: TRY 16.819 Thousand), and provision for the whole amount has been recognized in the “Insurance technical reserves” item of balance sheet. Total amount of letters of guarantees, guarantees and commitments submitted by the Group pursuant to its own internal affairs and guarantees given by other institutions submitted by the Group pursuant to the third parties benefit of the Group stands at TRY 34.501 Thousand (December 31, 2010: TRY 32.454 Thousand) and is recognized under “Other irrevocable commitments” item of off-balance sheet contingencies and commitments.
6. Explanations related to Custodian and Intermediary Services None.
7. Summary Information on the Parent Bank’s Rating by the International Rating Institutions
FITCH RATINGS
Foreign Currency Long Term B+ Short Term B Outlook Stable Turkish Lira Long Term B+ Short Term B Outlook Stable International Long Term A-(tour) Outlook Stable Individual Rating D Support Points 5
The information is obtained from the Fitch Ratings Report as of November 22, 2011.
230 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
MOODY’S
Financial Strength D Outlook Stable Foreign Currency Long Term Ba3 Short Term B1 Outlook Stable Turkish Lira Long Term Ba2 Short Term Ba1 Outlook Stable International Long Term A3 Short Term TR-1
The information is obtained from the Moody’s Investor Service report as of February 22, 2012. SAHA Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri A.Ş. has completed its Corporate Governance rating report for Bank Asya in accordance with the Turkish Capital Markets Board’s communiqué of “Capital Market Rating Operations and Corporate Governance Principles”. Bank Asya’s Corporate Governance rating score previously has been identified as 81,69 on July 1, 2010 and revised to 82,56 as of July 1, 2011.
IV. Explanations and Disclosures Related to the Consolidated Income Statement
1. Information on Profit Share Income
1.1. Information on Profit Share on Loans:
I st Group II nd Group TRY FC TRY FC Profit Share on Loans 1.070.992 102.071 25.346 3.051 Short Term Loans 358.215 29.292 3.321 141 Medium and Long Term Loans 698.268 72.779 22.025 2.910 Profit Share on Non-Performing Loans 14.509 - - - Premiums Received from Resource Utilization - - - - Support Fund
1.2. Profit Share from Banks:
Current Period Prior Period TP YP TP YP Central Bank of the Republic of Turkey (Reserve - - 13.364 - Deposit) Domestic Banks 2.616 71 2.271 - Foreign Banks (*) 1.289 572 20.394 1.975 Foreign Head Office and Branches - - - - Total 3.905 643 36.029 1.975
(*) Foreign banks include profit shares from “murabaha” loans.
231 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
1.3. Information on Interest Received from Marketable Securities:
Current Period Prior Period TP YP TP YP Held-for-Trading Financial Assets - - - - Financial Assets at Fair Value through Profit and - - - - Loss Available for Sale Financial Assets 49.234 - 21.050 - Held to Maturity Investments 8.882 - 9.834 - Total 58.116 - 30.884 -
1.4. Information on Profit Share Income Received from Associates and Subsidiaries:
Current Period Prior Period Profit Share Income Received from Associates and Subsidiaries 15.438 15.164
2. Information on Profit Share Expenses
2.1. Information on Interest on Funds Borrowed:
Current Period Prior Period TRY FC TRY FC Banks 4.599 38.562 198 16.538 Central Bank of the Republic of Turkey - - - - Domestic Banks 4.599 1.036 198 1.036 Foreign Banks - 37.526 - 15.502 Branches and Foreign Head Office Abroad - - - - Other Institutions - - - - Total 4.599 38.562 198 16.538
2.2. Information on Profit Share Expense Given to Associates and Subsidiaries:
Current Period Prior Period Profit Share Expenses Given to Associates and Subsidiaries 7.585 599
2.3. Information on Profit Share Expense to Marketable Securities Issued: None.
232 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
2.4. Distribution of Profit Share Expense on Deposits Based on Maturity of Deposits:
Current Period Profit Sharing Accounts Up to 1 Up to 3 Up to 6 Up to 9 Up to 1 More than Account Name Total Month Months Months Months Year 1 Year TRY Banks and Finance Houses ------Real Person’s Profit Sharing Acc. Public Sector Profit Sharing Acc. 127.526 70.871 14.933 - 11.874 156.517 381.721 Commercial Sector Profit Sharing Acc. 4 28 6 - - 37 75 Other Institutions Profit Sharing Acc. 17.620 18.585 1.088 - 1.363 49.981 88.637 Total 915 2.150 1.026 - 879 3.156 8.126 FC 146.065 91.634 17.053 - 14.116 209.691 478.559 Banks and Finance Houses Real Person’s Profit Sharing Acc. 533 67 406 - 583 29 1.618 Public Sector Profit Sharing Acc. Commercial Sector Profit Sharing Acc. 16.548 14.974 3.078 - 5.010 23.526 63.136 Other Institutions Profit Sharing Acc. 1 - - - - - 1 Precious Metal Deposits 5.660 11.097 1.307 - 2.099 18.129 38.292 Total 16 166 4.386 - - 608 5.176 Grand Total ------Toplam 22.758 26.304 9.177 - 7.692 42.292 108.223 Genel Toplam 168.823 117.938 26.230 - 21.808 251.983 586.782
Prior Period Profit Sharing Accounts Up to 1 Up to 3 Up to 6 Up to 9 Up to 1 More than Account Name Total Month Months Months Months Year 1 Year TRY Banks and Finance Houses ------Real Person’s Profit Sharing Acc. 88.688 102.234 27.032 - 20.927 157.190 396.071 Public Sector Profit Sharing Acc. 1 2 - - - - 3 Commercial Sector Profit Sharing Acc. 18.240 23.906 1.441 - 3.831 20.967 68.385 Other Institutions Profit Sharing Acc. 454 790 3.480 - 182 1.831 6.737 Total 107.383 126.932 31.953 - 24.940 179.988 471.196 FC Banks and Finance Houses 812 69 - - - - 881 Real Person’s Profit Sharing Acc. 14.736 20.560 7.796 - 8.360 30.298 81.750 Public Sector Profit Sharing Acc. 1 - - - - - 1 Commercial Sector Profit Sharing Acc. 5.335 13.461 5.215 - 2.272 6.889 33.172 Other Institutions Profit Sharing Acc. 14 309 3.321 - - 499 4.143 Precious Metal Deposits ------Total 20.898 34.399 16.332 - 10.632 37.686 119.947 Grand Total 128.281 161.331 48.285 - 35.572 217.674 591.143
3. Explanations on Dividend Income The Group has TRY 131 Thousand of dividend income (December 31, 2010: TRY 171 Thousand).
233 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
4. Information on Net Trading Income
Current Period Prior Period Income 6.061.423 3.271.750 Securities Trading Gains 1.236 4.527 Gains on Derivative Financial Instruments 225.104 65.342 Foreign Exchange Gains 5.835.083 3.201.881 Losses (-) (6.021.966) (3.223.623) Securities Trading Losses (2.570) (1.246) Losses on Derivative Financial Instruments (160.894) (34.834) Foreign Exchange Losses (5.858.502) (3.187.543)
5. Explanations on Other Operating Income The detail of other operating income is stated as below:
Current Period Prior Period Communication Expense Reversal 1.203 9.719 Gain on Sale of Assets 22.742 20.540 Adjustments to Previous Years’ Expenses (*) 88.007 88.478 Insurance Technical Reserves 87.362 82.786 Gain on Timeshare Sales 13.975 3.154 Other 17.548 16.420 Total 230.837 221.097
(*) Adjustments to previous years’ expenses consists of amounting to TRY 67.242 Thousand special provision, general loan provision and provision reversal related to receivables and fees from the doubtful receivables and TRY 12.293 Thousand provision reversal related to cheques (December 31, 2010: TRY 88.110 Thousand).
6. Provision Expenses of the Bank for Loans and Other Receivables
Current Period Prior Period Specific Provisions for Loans and Other Receivables 170.277 107.508 III. Group Loans and Receivables 30.827 27.471 IV. Group Loans and Receivables 953 14.379 V. Group Loans and Receivables 127.637 54.915 Doubtful Commission, Fee and Other Receivables 10.860 10.743 General Provision Expenses 9.768 22.088 Provision Expenses for Possible Losses - - Marketable Securities Impairment Losses - 66 Financial Assets at Fair Value through Profit and Loss - 66 Investment Securities Available for Sale - - Impairment Provision Expense - - Associates - - Subsidiaries - - Entities under Common Control - - Investments Held to Maturity - - Other 48.153 37.891 Total 228.198 167.553
234 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7. Information on Other Operating Expenses
Current Period Prior Period Personnel Expenses 278.459 253.214 Provision for Employee Termination Benefits 5.080 5.079 Bank Social Aid Provision Fund Deficit Provision - - Impairment Expenses of Fixed Assets 186 60 Depreciation Expenses of Fixed Assets 45.645 42.076 Impairment Expenses of Intangible Assets - - Impairment Expense of Goodwill - - Amortization Expenses of Intangible Assets 3.880 3.281 Impairment Provision for Investments Accounted for under Equity Method - - Impairment Expenses of Assets to be Disposed off 1.577 1.619 Depreciation Expenses of Assets to be Disposed off 5.378 3.691 Impairment Expenses of Assets Held for Sale 37 244 Other Operating Expenses 198.476 182.016 Rent Expenses 57.753 45.193 Maintenance Expenses 3.677 2.779 Advertisement Expenses 30.406 34.259 Other Expenses 106.640 99.785 Loss on Sales of Assets 2.893 9.637 Other (*) 105.042 109.957 Total 646.653 610.874
(*) Other expenses consist of TRY 52.907 Thousand insurance technical expenses (December 31, 2010: TRY 61.111 Thousand).
8. Explanation on Continuing Operations and Discontinued Operations Profit or Loss before Tax The Group’s profit before tax is decreased by 15,72% (December 31, 2010: 15%) as compared to the prior year figures and total profit before tax amounts to TRY 276.658 Thousand (December 31, 2010: TRY 328.251 Thousand ). Profit before tax includes TRY 636.376 Thousand (December 31, 2010: TRY 601.165 Thousand) net profit share income, TRY 241.076 Thousand (December 31, 2010: TRY 234.907 Thousand) net fees and commission income. Total operating expense amount is TRY 646.653 Thousand (December 31, 2010: TRY 610.874 Thousand).
9. Explanation on Continuing Operations and Discontinued Operations Tax Provision As of December 31, 2011, current tax expense is TRY 60.625 Thousand (December 31, 2010: TRY 70.887 Thousand) and deferred tax income is TRY 6.110 Thousand (December 31, 2010: TRY 5.761 Thousand deferred tax income).
10. Information on Operating Profit/Loss After Taxes Net profit of the Group is decreased by 15,58% as of December 31, 2011 as compared to the prior year’s net profit.
11. Explanations on Net Income / Loss for the Period The nature and amount of certain income and expense items from ordinary operations is disclosed if the disclosure for nature, amount and repetition rate of such items is required for the complete understanding of the Group’s performance for the period: None. Effect of changes in accounting estimates on income statement for the current and, if any, for subsequent periods: None.
235 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
12. The Description and Amounts of Items which Constitute at Least 20% of Other Items in the Income Statement, if These Liabilities Exceed 10% of the Total Income Statement Other fees and commissions received/given are stated as below:
Current Period Prior Period Other Fees and Commission Received Member Firm-POS Fees and Commission 60.590 57.234 Credit Card Fees and Commission 51.726 40.938 Commissions on Collection and Disbursement 16.379 9.452 Expertise Fees 14.395 8.530 Money Transfer Commissions 8.811 6.978 Insurance Underwriting Commissions 8.285 5.686 Other 26.870 23.713 Total 187.056 152.531
Current Period Prior Period Other Fees and Commissions Given Credit Cards Commissions and Fees 53.573 45.550 Other 26.038 23.904 Total 79.611 69.454
13. Nature and Amount of Changes in Accounting Estimates which have Material Effects on The Current Period or Expected to have Material Effects on the Subsequent Periods None.
V. Explanations and Disclosures Related to the Statements of Shareholders’ Equity
1. Increases from Valuation of Financial Assets Available for Sale Decrease resulting from revaluation of financial assets available for sale is TRY 13.599 Thousand (December 31, 2010: TRY 6.732 Thousand increase).
2. Increases Due to Cash Flow Hedges None.
3. Reconciliation of Foreign Exchange Differences at Beginning and End of Current Period In the current period, the change in other reserves item is a result of the conversion losses of financial institutions.
4. Dividends Declared Subsequent to the Balance Sheet Date, but before the Announcement of the Financial Statements None.
5. Dividends per Share Proposed Subsequent to the Balance Sheet Date None.
6. Proposals to General Assembly for the Payment Dates of Dividends and if It will not be Appropriated the Reasons for This The Board of Directors has not decided for profit distribution as of the reporting date.
236 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
7. Amounts Transferred to Legal Reserves As of December 31, 2011, amount transferred to legal reserves is TRY 13.053 Thousand (December 31, 2010: TRY 15.296 Thousand).
8. Information on Shares Issued None.
9. Other Information Asyafin Sigorta Aracılık Hizmetleri Ltd. Şti. has consolidated for the first time based on the change of the communiqué on “Regulations Regarding Banks’ Consolidated Financial Statements” published on Official Gazette numbered 27824 dated January 23, 2011 and the effects of the scope of consolidation are shown on other line at consolidated statements of shareholders’ equity movement.
VI. Explanations and Disclosures Related to Statement of Cash Flows
1. Cash and Cash Equivalents
1.1. Components of Cash and Cash Equivalents and Accounting Policies Used to Determine Such Components: “Cash” is defined as cash in TRY and foreign currency, money in transit, cheques purchased and demand deposits in Banks, and “Cash equivalents” is defined as time deposits in Banks having original maturity less than three months and short term “murabaha” (sale at a markup) loans. Deposits held in Central Bank of the Republic of Turkey are not presented as cash equivalents.
1.2. Cash and Cash Equivalents at the Beginning of the Period: “Other” item amounting to TRY (648.922) Thousand in “Operating profit before changes in operating assets and liabilities” consists of fees and commission paid, operating lease expenses, repairment and maintenance expenses, advertisement expenses and other operating expenses (December 31, 2010: TRY (334.548) Thousand). “Other Income” amounting to TRY 190.470 Thousand consists of gains on derivative financial transactions, insurance operation income foreign exchange gains and other operating income (December 31, 2010: TRY 193.093 Thousand). “Net increase/decrease in other assets” amounting to TRY 13.094 Thousand in “Changes in operating assets and liabilities” consists of changes in sundry debtors, insurance operation receivables, other assets and intangible asset purchases (December 31, 2010: TRY (7.124) Thousand). “Net increase/decrease in other liabilities” with a total amount of TRY 390.005 Thousand consists of changes in sundry creditors and other liabilities (December 31, 2010: TRY 163.738 Thousand). “Other items” amounting to TRY 5.397 Thousand (31 December 2010: TRY 3.476 Thousand) in “Net cash provided from investing activities” consists of cash paid for purchases of intangible assets. The effect of changes in foreign exchange rates on cash and cash equivalents as of December 31, 2011 is approximately TRY 77.979 Thousand (December 31, 2010: TRY 8.412 Thousand).
1.3. Cash and Cash Equivalents at the Beginning of the Period: Current Period Prior Period Cash 404.984 255.679 Cash in TRY/Foreign Currency 233.460 131.327 Banks-Demand Deposit 171.524 124.352 Cash Equivalents 37.573 134.498 Banks-Time Deposit 37.573 34.498 Murabaha Transactions Classified as Loans - 100.000 Total Cash and Cash Equivalents 442.557 390.177
1.4. Cash and Cash Equivalents at the End of the Period: Current Period Prior Period Cash 608.441 404.984 Cash in TRY/Foreign Currency 260.104 233.460 Banks-Demand Deposit 348.337 171.524 Cash Equivalents 27.260 37.573 Banks-Time Deposit 27.260 37.573 Murabaha Transactions Classified as Loans - - Total Cash and Cash Equivalents 635.701 442.557
237 Consolidated Financial Statements and Accompanying Notes
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
VII. Explanations on the Risk Group of the Parent Bank
1. Transaction Volume of the Risk Group of the Parent Bank, Outstanding Loan and Deposit Balances and Current Income and Expense Amounts
1.1. Current Period:
Direct and Indirect Other Entities Included in Risk Group of the Parent Bank Subsidiaries and Associates Shareholders of the the Risk Group Group Cash Non-Cash Cash Non-Cash Cash Non-Cash Loans and Other Receivables (*) Balance at Beginning of Period 77.494 8.921 - - 172.548 42.782 Balance at End of Period 107.795 16.806 - - 206.072 164.645 Profit Share and Commission 15.438 - - - 35.797 - Income
(*) The risk group balance includes TRY 3.411 Thousand finance lease receivables (December 31, 2010: TRY 153 Thousand). 1.2. Prior Period:
Direct and Indirect Other Entities Included in Risk Group of the Parent Bank Subsidiaries and Associates Shareholders of the the Risk Group Group Nakdi G.Nakdi Nakdi G.Nakdi Nakdi G.Nakdi Loans and Other Receivables (*) Balance at Beginning of Period 52.357 9.225 - - 220.914 68.491 Balance at End of Period 77.494 8.921 - - 172.548 42.782 Profit Share and Commission 15.164 - - - 23.870 - Income
(*) The risk group balance includes TRY 153 Thousand finance lease receivables (December 31, 2009: TRY 237 Thousand).
1.3. Risk Group Deposits Balances of the Parent Bank:
Direct and Indirect Other Entities Included in the Risk Group of the Parent Bank Subsidiaries and Associates Shareholders of the Group Risk Group Current and Profit Sharing Current Period Current Period Current Period Accounts Balance at the Beginning of Period 24.002 - 109.357 Balance at the End of Period 9.674 - 127.638 Profit Share Expense 7.585 - 4.950
1.4. Information on Forward and Option Agreements and Other Similar Agreements with Related Parties: None.
1.5. Information on Compensation of Key Management Personnel: During the current period, the total amount of remuneration and benefits provided to the key management personnel of the Group is TRY 11.665 Thousand (December 31, 2010: TRY 10.142 Thousand). Besides remuneration, the key management personnel also receive some further tangible rights.
238 Bank Asya 2011 Annual Report
ASYA KATILIM BANKASI A.Ş.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 (Amounts expressed in thousands of Turkish Lira (“TRY”) unless otherwise stated.)
VIII. Explanations on the Parent Bank’s Domestic, Foreign, Off-shore Branches or Investments in Associates and Foreign Representative Offices
1. Explanations on the Parent Bank’s Domestic, Foreign, Off-shore Branches or Investments in Associates and Foreign Representative Offices Number Employees Domestic Branches 200 4.542 Country Rep-Offices Abroad (*) - - -
Total Assets Capital Branches Abroad - - - - -
Off-shore Branches - - - - -
(*) The Bank has received all necessary approvals from BRSA to open a representative office in Mumbai, India and a branch in Arbil, Iraq. As of the reporting date, opening representative office and branch is still in progress.
Işık Sigorta A.Ş. from the consolidated subsidiaries operates domestically and currently has 4 regional management offices, 2 regional representation offices and 1.172 (including the Bank branches) agencies and 169 personnel as of 31 December 2011. Tuna Gayrimenkul Yatırım Ortaklığı A.Ş. operates domestically and currently has 18 personnel as of December 31, 2011. Tamweel Africa Holding S.A., which operates abroad, has currently 4 banks and 10 personnel. Asya Emeklilik ve Hayat A.Ş. operates domestically and currently has 24 personnel.
2. Explanations on Branch and Agency Openings or Closings of the Parent Bank: The Parent Bank has opened 25 new branches in the period of January 1– December 31, 2011.
SECTION SIX: OTHER EXPLANATIONS
I. Other Explanations on Operations of the Group
1. Subsequent Events Bank Asya's Board members Mr. Salih SARIGÜL and Mr. Ahmet ÇELİK have announced their resignations, effective on January 26th, 2012, Mr. Tacettin NEGİŞ has announced his resignation, effective on February 2nd, 2012, Mr. İsmail Erol İŞBİLEN and Hülagü ÖZCAN have announced their resignations, effective on March 12th, 2012 then, retrospectively Mr. Ali ÇELİK, Mr. Faruk İLK and Mr. Mustafa Talat KATIRCIOĞLU, Dr. Ercüment GÜLER, Mehmet URUÇ were appointed as the board members to fill their vacancies. In general meeting on March 31, 2012, the number of Parent Bank’s board members determined as 9 and Mehmet GÖZÜTOK and Recep KOÇAK were appointed as the board members, Erhan BİRGİLİ was appointed as the auditor. On March 8, 2012, it has been decided to increase the capital of Tamweel Africa Holding S.A. by EUR 11.639.788 which has been accounted for under the equity method by the Parent Bank. The Parent Bank has paid EUR 4.655.915 for the capital increase on March 8, 2012. Capital registry process has not been finalized yet.
SECTION SEVEN: INDEPENDENT AUDITORS’ REPORT
I. Explanations on the Independent Auditors’ Report The financial statements of the Parent Bank for the year January 1 – December 31, 2011 have been audited by DRT Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (Member of Deloitte Touche Tohmatsu Limited). The independent auditor’s report is presented at the beginning of the financial statements and related notes.
II. Other Footnotes and Explanations Prepared by the Independent Auditors There is no significant matter or disclosure which may be in connection with the Group’s operations but not explained in the above sections.
239 Contact Information
Bank Asya Branches
Head Office Akdeniz Corporate Branch Amasya Branch
Saray Mah. Dr. Adnan Büyükdeniz Cad. No:10 Tarım Mah. Aspendos Bulvarı Olimpos Erüst İş Yüzevler Mah. Danişment Cad. No:14/A Amasya Ümraniye 34768 İstanbul Mrk. B Blok No:4 Antalya Phone: (0358) 213 11 70 Fax: (0358) 213 10 60 Phone: (0216) 633 50 00 Fax: (0216) 633 50 50 Phone: (0242) 313 18 18 Fax: (0242) 311 77 80 Ankara BANK ASYA Regional Offices Başkent Corporate Branch Ankara Branch Ankara Regional Office Armada İş Mrk. Eskişehir Yolu No:6 Kat:20/34 Anafartalar Cad. No:63 Anafartalar Altındağ 06520 Söğütözü / Ankara 06060 Ankara Ehlibeyt Mah. Ceyhun Atuf Kansu Cad. 1271 Sk. Phone: (0312) 219 18 38 Fax: (0312) 219 18 40 Sümer İş Merkezi Kat:3 No:15/11 Balgat / Ankara Phone: (0312) 310 47 47 Fax: (0312) 310 47 57 Phone: (0312) 472 81 91 Fax: (0312) 472 74 70 Boğaziçi Corporate Branch Balgat Branch Ege Regional Office Esentepe Mah. Büyükdere Cad. No:102 Maya Ehlibeyt Mah. Ceyhun Atuf Kansu Cad. No:100/T Center B Blok K:22 Şişli / İstanbul (B Blok No: 20) Balgat / Ankara Akdeniz Cad. No:1 Reyent İş Hanı Kat:6 Phone: (0212) 272 50 04 Fax: (0212) 272 60 69 Pasaport Konak İzmir Phone: (0312) 473 54 20 Fax: (0312) 473 54 30 Phone: (0232) 441 15 51 Fax: (0232) 441 15 15 Ege Corporate Branch Çankaya Branch İstanbul Anatolia Regional Office Şehit Fethi Bey Cad. No:55 Heris Tower İş Mrk. Güzeltepe Mah. Hoşdere Cad. No:222 Çankaya K:16 D:23-24 Pasaport Alsancak / İzmir 06550 Ankara Yenişehir Mah. Mevlana Sok. No:31 Phone: (0232) 441 47 40 Fax: (0232) 441 52 04 Ataşehir / İstanbul Phone: (0312) 439 52 50 Fax: (0312) 439 52 55 Phone: (0216) 580 96 96 Fax: (0216) 580 97 27 Trakya Corporate Branch Etlik Branch İstanbul European Regional Office I Çobançeşme Mah. Sanayi Cad. No:44/A İncirli Mah. Yunus Emre Cad. No:5 Etlik Keçiören 121-122 Nish İstanbul Yenibosna 06010 Ankara Esentepe Mah. Büyükdere Cad. No:102 Maya Bahçelievler / İstanbul Phone: (0312) 321 86 31 Fax: (0312) 322 61 45 Center B Blok K:22 Şişli / İstanbul Phone: (0212) 603 61 88 Fax: (0212) 603 61 89 Phone: (0212) 272 53 00 Fax: (0212) 272 50 60 BANK ASYA's Branchs İvedik Organize Sanayi Branch İstanbul European Regional Office II Ostim Mah. 23. Cad. Tuğcular İş Mrk. No:18/10 Adana Evren Mah. Koçman Cad. No:40 Güneşli Yenimahalle / Ankara Bağcılar / İstanbul Adana Branch Phone: (0312) 394 70 95 Fax: (0312) 394 70 98 Phone: (0212) 630 12 00 Fax: (0212) 630 20 41 Çınarlı Mah. Atatürk Cad. Kemal Özülkü İş Keçiören Branch Karadeniz Regional Office Merkezi No:23 Zeminkat Seyhan 01060 Adana Güçlükaya Mah. Cumhuriyet Cad. No:11/B Phone: (0322) 457 67 00 Fax: (0322) 457 52 53 Çömlekci Mah. Sanayi Cad. Yaren Sok. No:2 Keçiören / Ankara Değirmendere / Trabzon Çukurova Branch Phone: (0312) 360 65 10 Fax: (0312) 360 65 50 Phone: (0462) 325 8700 Fax: (0462) 325 8701 Turgut Özal Bulvarı Dosteller Apt. No:176 Kızılay Branch Konya Regional Office Seyhan / Adana Meşrutiyet Cad. No:16/A Kızılay 06640 Ankara Phone: (0322) 233 09 81 Fax: (0322) 233 09 31 Musalla Bağları Mah. Belh Cad. No:10 Phone: (0312) 419 37 00 Fax: (0312) 417 29 00 Selçuklu / Konya Adapazarı Branch Kızılcahamam Branch Phone: (0332) 237 13 13 Fax: (0332) 236 10 39 Atatürk Bulvarı No:75 Adapazarı Yenice Mah. Cengiz Topel Cad. No:5/17 Marmara Regional Office Phone: (0264) 281 39 10 Fax: (0264) 281 39 01 Kızılcahamam 06890 Ankara Ahmet Paşa Mah. Fomara İş Mrk. No:73 Kat:5 Adıyaman Branch Phone: (0312) 736 05 90 Fax: (0312) 736 09 30 Osmangazi / Bursa Ostim Branch Phone: (0224) 272 02 02 Fax: (0224) 272 10 40 Atatürk Cad. Ulu Cami Yanı 444 Sok. No:10 Adıyaman Yenimahalle Yüzüncü Yıl Bulvarı No:74 06370 Southeastern Anatolia Regional Office Phone: (0416) 216 60 50 Fax: (0416) 216 66 90 Ostim / Ankara Mücahitler Mah. Gazimuhtarpaşa Bulvarı No:65 Afyon Branch Phone: (0312) 354 84 74 Fax: (0312) 354 40 05 Şehitkamil / Gaziantep Polatlı Branch Phone: (0342) 323 53 12 Fax: (0342) 323 51 61 Dumlupınar Mah. Yüzbaşı Agâh Cad. No:1 03200 Afyon Ankara Cad. No:36 Polatlı / Ankara BANK ASYA Corporate Branches Phone: (0272) 214 50 00 Fax: (0272) 214 33 33 Phone: (0312) 621 33 58 Fax: (0312) 621 26 49 Anadolu Corporate Branch Aksaray Branch Pursaklar Branch Değirmen Sok. Nidakule İş Mrk. No:18 Kat:19 Minarecik Mah. Ankara Cad. No:14/A Aksaray Merkez Mah. Belediye Cad. No:17/A-B Kozyatağı Kadıköy / İstanbul Phone: (0382) 212 74 36 Fax: (0382) 213 15 70 Pursaklar / Ankara Phone: (0216) 372 13 00 Fax: (0216) 372 15 50 Phone: (0312) 527 50 51 Fax: (0312) 527 50 88
240 Bank Asya 2011 Annual Report
Sincan Branch Balıkesir Çorum Branch
Atatürk Mah. Onur Sok. No:16/A Sincan / Ankara Balıkesir Branch İnönü Cad. No:51 19100 Çorum Phone: (0312) 276 81 10 Fax: (0312) 276 81 15 Phone: (0364) 224 11 60 Fax: (0364) 224 24 36 Altıeylül Mah. Kızılay Cad. No:6 10100 Balıkesir Siteler Branch Phone: (0266) 239 66 13 Fax: (0266) 239 68 40 Denizli Branch
Demirhendek Cad. No:68 Siteler 06160 Ankara Bandırma Branch Saraylar Mah. Saltak Cad. No:6/C Phone: (0312) 353 42 00 Fax: (0312) 353 57 00 Merkez / Denizli İsmet İnönü Cad. No:68/A Bandırma / Balıkesir Phone: (0258) 241 87 88 Fax: (0258) 241 35 70 Yenimahalle Branch Phone: (0266) 718 15 15 Fax: (0266) 718 15 30 Diyarbakır Ragıp Tüzün Cad. No:167 Yenimahalle / Ankara Batman Branch Phone: (0312) 315 34 43 Fax: (0312) 315 53 80 Dağkapı Branch Bahçelievler Mah. Turgut Özal Bulvarı No:237 Antalya Batman Gazi Cad. No:18 Diyarbakır Phone: (0488) 212 07 95 Fax: (0488) 212 07 22 Phone: (0412) 224 39 39 Fax: (0412) 223 25 50 Alanya Branch Bolu Branch Diyarbakır Branch Şekerhane Mah. Şevket Tokuş Cad. Kerim Çağırıcı Sok. No:35/A Alanya İzzet Baysal Cad. Güney Kaya Pasajı No:77 Bolu Şanlıurfa Yolu Bulvarı Serin Apt. Phone: (0242) 519 07 02 Fax: (0242) 519 05 84 Phone: (0374) 212 15 15 Fax: (0374) 212 35 07 No:57/C Diyarbakır Phone: (0412) 251 62 61 Fax: (0412) 251 98 08 Antalya Branch Bursa Düzce Branch Adnan Menderes Bulvarı Has İş Merkezi No:9 Bursa Branch 07040 Antalya Burhaniye Mah. İstanbul Cad. No:3/B Düzce Phone: (0242) 248 00 71 Fax: (0242) 242 43 45 Haşim İşçan Cad. No:2 Osmangazi 16220 Bursa Phone: (0380) 523 57 80 Fax: (0380) 524 94 24 Phone: (0224) 225 14 80 Fax: (0224) 225 14 89 Aspendos Bulvarı Branch Edirne Branch Demirtaş Branch Tarım Mah. Aspendos Bulvarı Olimpos Erüst İş Çavuşbey Mah. Hükümet Cad. Merkezi B Blok No:4 Antalya Panayır Mah. Yeni Yalova Cad. No:455/H No:3 Edirne Phone: (0242) 313 18 18 Fax: (0242) 311 77 80 Özyıldırım Plaza Osmangazi / Bursa Phone: (0284) 212 10 01 Fax :(0284) 212 10 03 Phone: (0224) 211 19 09 Fax: (0224) 211 19 08 Kepez Branch Elazığ Branch İnegöl Branch Yükseliş Mah. Mithat Paşa Cad. Görkem Apt. Rızaiye Mah. Gazi Cad. No:2 Zemin Kat: 4 Elazığ No:22/1 07020 Antalya Nuri Doğrul Cad. No:29 İnegöl / Bursa Phone: (0424) 237 37 00 Fax: (0424) 237 53 53 Phone: (0242) 345 94 45 Fax: (0242) 345 95 59 Phone: (0224) 715 17 55 Fax: (0224) 715 72 75 Ereğli Branch Konyaaltı Branch Nilüfer Branch Müftü Mah. Erdemir Caddesi No:60/B Arapsuyu Mah. Atatürk Bulvarı Altınay Plaza İhsani Mah. İzmir Yolu Bankalar Cad. Çilek Sok. Kdz. Ereğli / Zonguldak No:127/B-2 Konyaaltı / Antalya Atalay 9 Sitesi A Blok No:22 Nilüfer / Bursa Phone: (0372) 322 06 00 Fax: (0372) 322 18 78 Phone: (0242) 228 45 10 Fax: (0242) 228 40 35 Phone: (0224) 249 49 09 Fax: (0224) 249 45 99 Erzincan Branch Manavgat Branch Ulucami Branch Karaağaç Mah. Fevzi Paşa Cad. No:26/B Bahçelievler Mah. Demokrasi Bulvarı No:50 Atatürk Caddesi No:94 Osmangazi / Bursa Erzincan Manavgat / Antalya Phone: (0224) 225 20 55 Fax: (0224) 225 20 66 Phone: (0446) 214 14 24 Fax: (0446) 214 15 35 Phone: (0242) 746 98 98 Fax: (0242 746 90 28 Uludağ Branch Erzurum Branch Muratpaşa Branch Ulu Mah. Kıbrıs Şehitleri Cad. No:48/A-B Gez Mah. Orhan Şerifsoy Cad. No:15 Erzurum Balbey Mah. İsmetpaşa Cad. İkizhan İş Hanı 12/A Osmangazi / Bursa Phone: (0442) 235 76 00 Fax: (0442) 235 76 08 Antalya Phone: (0224) 256 72 72 Fax: (0224) 256 20 29 Eskişehir Branch Phone: (0242) 242 16 80 Fax: (0242) 242 16 24 Yıldırım Branch Aydın İstiklal Mah. Şair Fuzuli Cad. No:24 Duaçınarı Mah. Ankara Yolu Cad. No:237 Odunpazarı / Eskişehir Aydın Branch Yıldırım / Bursa Phone: (0222) 230 82 00 Fax: (0222) 230 55 47 Phone: (0224) 367 78 00 Fax: (0224) 367 77 61 Hükümet Bulvarı Hasan Efendi Mah. No:19/A Fethiye Branch Aydın Çanakkale Branch Phone: (0256) 213 03 90 Fax: (0256) 225 22 26 Cumhuriyet Mah. Hükümet Cad. No:5 Çarşı Cad. No:131 Çanakkale Fethiye / Muğla Nazilli Branch Phone: (0286) 212 05 00 Fax: (0286) 214 12 09 Phone: (0252) 612 10 40 Fax: (0252) 612 10 80
Altıntaş Mah. İstasyon Bulvarı No:23 Nazilli / Aydın Phone: (0256) 314 10 70 Fax: (0256) 314 15 88
241 Contact Information
Bank Asya Branches
Gaziantep Altunizade Branch Beykoz Branch
Gatem Branch Kısıklı Cad. No:7 Altunizade / İstanbul Fevzi Paşa Mah. No:78 Beykoz / İstanbul Phone: (0216) 474 42 11 Fax: (0216) 474 41 48 Phone: (0216) 323 91 06 Fax: (0216) 323 91 05 Muammer Aksoy Bulvarı Prestij İş Merkezi No:8-9 Şehit Kamil 27020 Gaziantep Arnavutköy Branch Beylikdüzü Branch Phone: (0342) 238 37 37 Fax: (0342) 238 37 77 İslambey Mah. Fatih Cad. No:24 Gürpınar Kavşağı E5 Yolu Üzeri Deko İş Merkezi Gaziantep Branch Arnavutköy / İstanbul Beylikdüzü - Büyükçekmece / İstanbul Phone: (0212) 597 08 28 Fax: (0212) 597 70 44 Phone: (0212) 872 68 48 Fax: (0212) 873 13 16 İncilipınar Mah. Muammer Aksoy Bulvarı Prestij İş Merkezi No:9-10 Şehit Kamil 27020 Gaziantep Ataşehir Branch Büyükçekmece Branch Phone: (0342) 215 17 79 Fax: (0342) 215 17 93 Yenişehir Mah. Mevlana Sok. No:31 Fatih Mah. Cengiz Topel Cad. No:4/A Suburcu Branch Ataşehir / İstanbul Büyükçekmece / İstanbul Phone: (0216) 580 98 98 Fax: (0216) 580 97 37 Phone: (0212) 881 24 54 Fax: (0212) 881 24 20 Karagöz Mah. Karagöz Cad. No: 2/A Şahinbey / Gaziantep Avcılar Branch Cennet Mahallesi Branch Phone: (0342) 232 65 10 Fax: (0342) 232 66 72 E-5 Yolu Üzeri Merkez Mah. Engin Sok. No:1 Cennet Mah. Barboros Cad. No:69/B Giresun Branch Avcılar 34310 İstanbul Küçükçekmece / İstanbul Phone: (0212) 694 80 00 Fax: (0212) 694 78 78 Phone: (0212) 579 20 85 Fax: (0212) 579 20 91 Hacımiktat Mah. Fatih Cad. No:18 Merkez / Giresun Bağcılar Branch Çağlayan Branch Phone: (0454) 214 10 90 Fax: (0454) 214 10 09 Merkez Mah. 1. Sok. No:9 Bağcılar / İstanbul Çağlayan Vatan Cad. Avrasya İş Merkezi No: 6/A Hatay Phone: (0212) 435 78 00 Fax: (0212) 435 75 57 Çağlayan - Kağıthane 34403 İstanbul Phone: (0212) 291 80 08 Fax: (0212) 291 66 64 Antakya Branch Bahçelievler Branch Çapa Branch Yavuz Selim Cad. Zühtiye Ökten İşhanı No:6 İzzettin Çalışlar Cad. No: 23/B Antakya / Hatay Bahçelievler / İstanbul Şehremini Mah. Turgut Özal Cad. No:145/A Phone: (0326) 225 13 83 Fax: (0326) 225 26 42 Phone: (0212) 502 81 00 Fax: (0212) 502 80 88 Fatih / İstanbul Phone: (0212) 589 01 09 Fax: (0212 589 01 69 İskenderun Branch Bakırköy Branch Çekmeköy Branch Savaş Mah. Mareşal Fevzi Çakmak Cad. No:10 İncirli Cad. No: 113 Bakırköy 34740 İstanbul Modern İş Hanı İskenderun / Hatay Phone: (0212) 466 05 06 Fax: (0212) 466 37 00 Meclis Mah. Teraziler Cad. Aşkın Sok. No:19/B Phone: (0326) 617 93 10 Fax: (0326) 613 70 86 Sancaktepe/İstanbul Bakırköy Çarşı Branch Phone: (0216) 466 13 53 Fax: (0216) 466 13 43 Isparta Branch Cevizlik Mah. İstanbul Cad. No:35/A Çeliktepe Branch Pirimehmet Mah. 118 Cad. Koca Mustafa Pasajı Bakırköy / İstanbul No:16 Isparta Phone: (0212) 542 77 09 Fax: (0212) 542 51 46 Emniyet Evleri Mah. İsmet İnönü Cad. No:12/A Phone: (0246) 223 11 19 Fax: (0246) 223 20 75 Çeliktepe / İstanbul Başakşehir Branch Phone: (0212) 282 40 10 Fax: (0212) 282 40 70 İstanbul Ziya Gökalp Mah. İkitelli OSB S.S Tümsan Dikilitaş Branch Acıbadem Branch 1.Kısım Sanayi Sitesi 3.Blok No:5 Başakşehir / İstanbul Dikilitaş Mah. Emirhan Cad. No:85/A Acıbadem Cad. Kazaca Apt. A Blok No:97/B Phone: (0212) 486 19 24 Fax: (0212) 485 35 68 Beşiktaş / İstanbul Kadıköy / İstanbul Phone: (0212) 236 81 81 Fax: (0212) 236 30 15 Phone: (0216) 545 07 85 Fax: (0216) 327 54 22 Bayrampaşa Branch Dolayoba Branch Aksaray Branch Yenidoğan Mah. Abdi İpekçi Cad. Parkhan No:8/B Bayrampaşa / İstanbul Çınardere Mah. E-5 Yanyolu Cad. No: 63/1 Mustafa Kemal Paşa Cad. No:86 Aksaray Phone: (0212) 493 13 00 Fax: (0212) 493 16 16 Pendik / İstanbul Fatih / İstanbul Phone: (0216) 379 74 84 Fax: (0216) 379 96 60 Phone: (0212) 458 77 77 Fax: (0212) 458 78 58 Beşiktaş Branch Dudullu Branch Altıntepe Branch Sinanpaşa Mah. Beşiktaş Cad. No:1/A Beşiktaş / İstanbul Yukarı Dudullu Mah. Alemdağ Cad. Altıntepe Mah. Bağdat Cad. No:71/B Phone: (0212) 227 95 00 Fax: (0212) 227 22 40 No:449-457/D Ümraniye / İstanbul Maltepe / İstanbul Phone: (0216) 612 10 11 Fax: (0216) 612 10 33 Phone: (0216) 417 80 66 Fax: (0216) 417 86 06 Beşyüzevler Branch Erenköy Branch Altıyol Branch Yıldırım Mah. Eski Edirne Asfaltı Cad. No: 213/A Bayrampaşa / İstanbul Şemsettin Günaltay Cad. Çiğdem Apt. No: 238 Osmanağa Mah. Söğütlüçeşme Cad. No:29 Phone: (0212) 618 80 35 Fax: (0212) 618 70 65 Erenköy / İstanbul Kadıköy / İstanbul Phone: (0216) 467 16 06 Fax: (0216) 467 00 76 Phone: (0216) 330 71 21 Fax: (0216) 330 72 85
242 Bank Asya 2011 Annual Report
Esenler Branch İmes Sanayi Branch Levent Sanayi Branch
Atışalanı Cad. No:21 Esenler 34230 İstanbul İmes Sanayi Sitesi C Blok 301 Sok. No:3/A Yukarı Sanayi Mah. Sultan Selim Cad. No:1/C Phone: (0212) 611 00 15 Fax: (0212) 611 00 98 Dudullu 34775 İstanbul Kağıthane / İstanbul Phone: (0216) 540 24 24 Fax: (0216) 540 51 70 Phone: (0212) 283 34 20 Fax: (0212) 269 67 69 Esenyurt Branch İmsan Branch Libadiye Branch İnönü Mah. Doğan Araslı Bulvarı No:124/B Esenyurt 34517 İstanbul Atatürk Mah. İmsan Sanayi Sitesi 1. Sok. No:42 Bulgurlu Mah. Libadiye Cad. No:60 Phone: (0212) 450 00 66 Fax: (0212) 450 04 33 Küçükçekmece / İstanbul Üsküdar / İstanbul Phone: (0212) 471 23 24 Fax: (0212) 471 23 34 Phone: (0216) 545 30 90 Fax: (0216) 545 08 11 Fatih Branch İstoç Branch Maltepe Branch Akşemsettin Mah. Akdeniz Cad. No:10 Fatih 34260 İstanbul İstoç E-1 Blok Öksüzoğulları Plaza No:5/3 Bağlarbaşı Mah. Bağdat Cad. No:485/B Phone: (0212) 531 88 87 Fax: (0212) 531 80 87 Bağcılar / İstanbul Maltepe / İstanbul Phone: (0212) 659 60 00 Fax: (0212) 659 33 11 Phone: (0216) 305 00 50 Fax: (0216) 305 00 40 Eyüp Branch Kadıköy Branch Maslak Branch Merkez Mah. Fahri Korutürk Cad. No:46-A Eyüp / İstanbul Tuğlacıbaşı Mah. Poyraz Sok. Sadıkoğlu 1 İş Ayazağa Mah. Büyükdere Cad. No:71 Phone: (0212) 417 10 35 Fax: (0212) 417 10 33 Merkezi No:16 Ziverbey Kadıköy 34710 İstanbul Maslak - Şişli / İstanbul Phone: (0216) 449 27 10 Fax: (0216) 449 27 09 Phone: (0212) 286 09 32 Fax: (0212) 328 16 68 Fevzipaşa Branch Kağıthane Branch Mecidiyeköy Branch İskenderpaşa Mah. Macar Kardeşler Cad. No:59 Fatih / İstanbul Mezbaha Sok. No: 1 Kağıthane / İstanbul Mecidiyeköy Yolu Cad. No:6/A Mecidiyeköy Phone: (0212) 521 10 70 Fax: (0212) 521 10 75 Phone: (0212) 295 81 33 Fax: (0212) 294 98 64 Şişli / İstanbul Phone: (0212) 356 37 00 Fax: (0212) 356 17 17 Fındıkzade Branch Karaköy Branch Mercan Branch Şehremini Mah. Kızıl Elma Cad. No:12/A Müeyyedzade Mah. Kemeraltı Cad. No:6/A Fatih / İstanbul Karaköy / İstanbul Prof. Cemil Birsel Cad. No:25 Eminönü / İstanbul Phone: (0212) 632 10 11 Fax: (0212) 632 10 45 Phone: (0212) 243 85 40 Fax: (0212) 243 85 41 Phone: (0212) 526 64 04 Fax: (0212) 526 64 15
Florya Branch Kartal Branch Merkez Şube
Şenlikköy Mah. Florya Asfaltı No:76/3 Florya Ankara Cad. No:96 Kartal / İstanbul Saray Mah. Dr. Adnan Büyükdeniz Cad. No:10 Bakırköy 34153 İstanbul Phone: (0216) 389 99 96 Fax: (0216) 389 55 66 Ümraniye 34768 İstanbul Phone: (0212) 573 48 28 Fax: (0212) 573 40 39 Phone: (0216) 633 69 43 Fax: (0216) 632 13 50 Kavacık Branch Gaziosmanpaşa Branch Merter Branch Orhan Veli Kanık Cad. Martı İş Merkezi No:72 Salihpaşa Cad. Şirinler Sok. No:1 Kavacık 34810 İstanbul Mehmet Nezihi Özmen Mah. Fatih Cad. No:24 Gaziosmanpaşa 34130 İstanbul Phone: (0216) 537 19 70 Fax: (0216) 425 02 77 Merter / İstanbul Phone: (0212) 418 49 99 Fax: (0212) 418 47 70 Phone: (0212) 637 69 00 Fax: (0212) 637 69 10 Kozyatağı Branch Güneşli Branch Natoyolu Branch Şaşmaz Plaza Saniye Ermutlu Sok. No:4 Evren Mah. Koçman Cad. No: 40 Kozyatağı 34742 İstanbul Güzeltepe Mah. Bosna Bulvarı (Nato Yolu) Güneşli - Bağcılar / İstanbul Phone: (0216) 445 36 26 Fax: (0216) 445 33 62 No:143/B Üsküdar / İstanbul Phone: (0212) 630 93 93 Fax: (0212) 630 36 20 Phone: (0216) 332 41 00 Fax: (0216) 332 45 75 Kurtköy Branch Güngören Branch Pendik Branch Kurtköy Mah. Üstün Cad. No:2 Güven Mah. İnönü Cad. No:42/B Kurtköy - Pendik / İstanbul Doğu Mah. 23 Nisan Cad. No:59 Pendik Güngören / İstanbul Phone: (0216) 378 34 31 Fax: (0216) 595 28 10 34895 İstanbul Phone: (0212) 504 20 90 Fax: (0212) 504 20 45 Phone: (0216) 491 69 42 Fax: (0216) 491 69 46 Küçükbakkalköy Branch Hadımköy Branch Sancaktepe Branch Kayışdağı Cad. No:105/A Ataşehir / İstanbul Akçaburgaz Mah. Hadımköy Yolu No:148 Phone: (0216) 575 81 88 Fax: (0216) 575 81 08 Meclis Mah. Eski Ankara Cad. No.34 Sancaktepe Esenyurt/İstanbul Sarıgazi / İstanbul Phone: (0212) 886 26 10 Fax: (0212) 886 26 25 Küçükköy Branch Phone: (0216 620 95 00 Fax: (0216) 620 99 10
İkitelli Branch Yeni Mah. İstanbul Cad. No:1-3A Sarıyer Branch Gaziosmanpaşa / İstanbul Turgut Özal Cad. İkitelli Organize Sanayi Bölgesi Phone: (0212) 649 50 30 Fax: (0212) 649 50 35 Şehit Midhat Cad. No:27 Sarıyer/İstanbul İkitelli - Küçükçekmece / İstanbul Phone: (0212) 271 50 65 Fax: (0212) 271 55 88 Phone: (0212) 549 81 41 Fax: (0212) 549 81 40
243 Contact Information
Bank Asya Branches
Sefaköy Branch Topkapı Branch Karabağlar Branch
Fevzi Çakmak Mah. Ahmet Kocabıyık Sok. Merkezefendi Mah. Davutpaşa Cad. No:119 Yeşillik Cad. No:417 Karabağlar 35400 İzmir No:12/C Sefaköy / İstanbul Zeytinburnu 34010 İstanbul Phone: (0232) 254 79 79 Fax: (0232) 254 11 61 Phone: (0212) 541 68 08 Fax: (0212) 541 78 44 Phone: (0212) 482 51 65 Fax: (0212) 483 20 33 Karşıyaka Branch Silivri Branch Tuzla Branch Girne Bulvarı No: 152-154/A Karşıyaka / İzmir Alibey Mah. Aziz Sok. A.Kadir Yılmaz İş Mrk. Aydıntepe Mah. Irmak Sok. No:1 Tuzla Phone: (0232) 372 77 20 Fax: (0232) 372 86 70 No:3/2 Silivri / İstanbul 34947 İstanbul Phone: (0212) 728 46 00 Fax: (0212) 728 95 15 Phone: (0216) 392 93 89 Fax: (0216) 392 30 37 Kemalpaşa Branch
Soğanlık Branch Tuzla Serbest Bölge Branch Mehmet Akif Ersoy Mah. Atatürk Bulvarı No:51/1 Kemalpaşa / İzmir Soğanlık Yenimahalle Atatürk Caddesi No:60/B İstanbul Deri Serbest Bölgesi Hakkı Matraş Cad. Phone: (0232) 878 15 00 Fax: (0232) 878 15 01 Kartal / İstanbul No:11 Tuzla 34950 İstanbul Phone: (0216) 451 20 50 Fax: (0216) 451 20 45 Phone: (0216) 394 07 81 Fax: (0216) 394 07 87 Şirinyer Branch
Sultanbeyli Branch Ümraniye Branch Güven Mah. Menderes Cad. No:318/A Buca / İzmir Fatih Bulvarı No:193 Sultanbeyli 34920 İstanbul Namık Kemal Mah. Sütçü Cad. No:2 Ümraniye Phone: (0232) 448 28 28 Fax: (0232) 448 40 28 Phone: (0216) 419 90 00 Fax: (0216) 419 21 10 34762 İstanbul Phone: (0216) 523 04 50 Fax: (0216) 523 04 56 Yenişehir Branch Sultançiftliği Branch Ümraniye Çarşı Branch Ege Ticaret İş Merkezi Gıda Çarşısı 1203-1 Sok. Cebeci Mah. Eski Edirne Asfaltı No:702A No:25/E İzmir Sultançiftliği-Sultangazi 34270 İstanbul İstiklal Mah. Alemdağ Cad. No:174/A Phone: (0232) 457 93 83 Fax: (0232) 457 97 96 Phone: (0212) 667 34 34 Fax: (0212) 667 53 53 Ümraniye / İstanbul Phone: (0216) 328 50 30 Fax: (0216) 328 40 99 Kahramanmaraş Branch Sultanhamam Branch Üsküdar Branch İsmetpaşa Mah. Hükümet Bulvarı Beyzade İşhanı Rüstempaşa Mah. Vasıfçınar Cad. No:49 No:8/A Kahramanmaraş Fatih / İstanbul Atlas Çıkmazı No:5/40 Üsküdar 34672 İstanbul Phone: (0344) 221 59 00 Fax: (0344) 221 59 60 Phone: (0212) 522 22 85 Fax: (0212) 522 53 00 Phone: (0216) 532 55 55 Fax: (0216) 532 90 90 Kastamonu Branch Şirinevler Branch Yenibosna Radar Branch Hepkebirler Mah. Cumhuriyet Cad. No:46/A Hürriyet Mah. Mahmutbey Cad. No:3/B Merkez Mah. Atatürk Cad. No:1/A Yenibosna Kastamonu Bahçelievler / İstanbul Bahçelievler / İstanbul Phone: (0366) 212 65 10 Fax: (0366) 212 65 20 Phone: (0212) 639 18 19 Fax: (0212) 639 18 29 Phone: (0212) 474 63 63 Fax: (0212) 474 63 43 Karabük Branch Şişli Branch Zeytinburnu Branch Bayır Mah. Hürriyet Cad. No:116 78100 Karabük Meşrutiyet Mah. Halaskargazi Cad. No:98/A Prof. Muammer Aksoy Cad. No:41 Zeytinburnu Phone: (0370) 412 66 06 Fax: (0370) 413 14 74 Şişli / İstanbul 34020 İstanbul Phone: (0212) 296 70 05 Fax: (0212) 296 70 06 Phone: (0212) 546 42 42 Fax: (0212) 546 45 60 Kayseri
Taksim Branch İzmir Kayseri Branch
İnönü Mah. Cumhuriyet Cad. Şakirpaşa İşhanı Aliağa Branch Cumhuriyet Mah. Nazmi Toker Cad. No:9 No.89 Şişli / İstanbul 38020 Kayseri Phone: (0212) 240 22 95 Fax: (0212) 240 64 13 Kazımdırık Mah. İstiklal Cad. No:49 Aliağa / İzmir Phone: (0352) 221 00 69 Fax: (0352) 221 29 88 Phone: (0232) 617 23 00 Fax: (0232) 617 23 09 Telsiz Mahallesi Branch Sanayi Branch Bornova Branch Telsiz Mah. Seyit Nizam Cad. No:176/A Sanayi Mah.Osman Kavuncu Bulvarı No:120 Zeytinburnu / İstanbul Fevzi Çakmak Cad. No:15/A Bornova / İzmir Kocasinan / Kayseri Phone: (0212) 665 40 33 Fax: (0212) 665 40 36 Phone: (0232) 343 16 16 Fax: (0232) 343 71 20 Phone: (0352) 320 11 40 Fax: (0352) 320 12 80
Tepeüstü Branch Gazi Bulvarı Branch Kocaeli
Alemdağ Cad. No:572/A Ümraniye İsmet Kaptan Mah. Gaziosmanpaşa Bulvarı Gebze Branch 34776 İstanbul No:15/A Çankaya / İzmir Phone: (0232) 484 12 50 Fax: (0232) 484 12 61 Hacı Halil Mah. Zübeyde Hanım Cad. Tekhan Phone: (0216) 466 43 50 Fax: (0216) 466 43 65 No:37 Gebze 41400 Kocaeli Topçular Branch İzmir Branch Phone: (0262) 644 07 07 Fax: (0262) 644 15 05
Kışla Cad. Kurtoğlu İş Merkezi No:21/7 Gaziosmanpaşa Bulvarı No:58/1 Gebze Çarşı Branch Eyüp / İstanbul Çankaya / İzmir Phone: (0232) 445 37 10 Fax: (0232) 445 62 21 Zübeyde Hanım Cad. No:37 Gebze Phone: (0212) 674 66 43 Fax: (0212) 674 81 55 41400 Kocaeli Phone: (0262) 645 02 80 Fax: (0262) 645 02 93
244 Bank Asya 2011 Annual Report
İzmit Branch Manisa Sivas Branch
Karabaş Mah. Cengiz Topel Cad. No:12 Akhisar Branch Eskikale Mah. Bankalar Cad. 13-2 Sok. No:4 İzmit / Kocaeli Sivas Phone: (0262) 323 09 00 Fax: (0262) 323 09 08 Paşa Mah. Haşim Haşimoğlu Cad. 50. Sok. Phone: (0346) 225 56 96 Fax: (0346) 224 25 34 No:23 Akhisar / Manisa Körfez Branch Phone: (0236) 412 11 58 Fax: (0236) 412 11 28 Şanlıurfa Branch
Kuzey Mah. Cahit Zarifoğlu Cad. No:53/D Manisa Branch Yusufpaşa Mah. Asfaltyol Cad. No:4 Körfez / Kocaeli 63100 Şanlıurfa Phone: (0262) 526 20 00 Fax: (0262) 526 20 03 1. Anafartalar Mah. Gaziosmanpaşa Cad. No:36 Phone: (0414) 216 80 80 Fax: (0414) 216 49 49 45010 Manisa Konya Phone: (0236) 231 21 00 Fax: (0236) 232 42 31 Tatvan Branch
Büsan Branch Turgutlu Branch Aydınlar Mah. Abdullah Kocakaplan Cad. No:31 A Blok Tatvan / Bitlis Fevzi Çakmak Mah. Kosgeb Cad. Büsan San. Turan Mah. Atatürk Bulvarı No:174 Phone: (0434) 828 04 20 Fax: (0434) 828 04 30 Sitesi No:19 Karatay 42040 Konya Turgutlu / Manisa Phone: (0332) 345 46 46 Fax: (0332) 345 46 55 Phone: (0236) 313 20 23 Fax: (0236) 313 20 85 Tekirdağ
Konya Branch Mardin Branch Çerkezköy Branch
Musalla Bağları Mah. Belh Cad. No:10 Selçuklu Çankaya Mah. İstiklal Cad. No:59/A Mersin Gaziosmanpaşa Mah. Atatürk Cad. No:39 42060 Konya Phone: (0324) 238 77 10 Fax: (0324) 238 81 66 Çerkezköy / Tekirdağ Phone: (0332) 238 95 05 Fax: (0332) 238 95 13 Phone: (0282) 725 37 05 Fax: (0282) 725 32 26 Mersin Branch Karatay Sanayi Branch Çorlu Branch Cami Şerif Mah. Uray Cad. No:58 33060 Mersin Fatih Mah. Köprü Sok. No:29/1 Selçuklu / Konya Phone: (0324) 238 77 10 Fax: (0324) 238 81 66 Cemaliye Mah. Omurtak Cad. No:236/1 Çorlu Phone: (0332) 236 20 55 Fax: (0332) 236 20 15 59860 Tekirdağ Nevşehir Branch Phone: (0282) 653 22 40 Fax: (0282) 653 31 80 Konya Ereğli Branch Aksaray Cad. No:19 50100 Nevşehir Tekirdağ Branch Pirömer Mah. İnönü Cad. Çimenlik Sok. No:2/A Phone: (0384) 213 05 55 Fax: (0384) 213 07 35 Ereğli / Konya Hükümet Cad. No:142 Tekirdağ Phone: (0332) 712 40 40 Fax: (0332) 712 42 32 Niğde Branch Phone: (0282) 260 64 90 Fax: (0282) 260 59 04
Mevlana Branch Esenbey Mah. Ayhan Şahenk Bulvarı No:18/C Tokat Branch Merkez / Niğde Pürçüklü Mah. Aziziye Cad. No:24 Phone: (0388 213 10 60 Fax: (0388) 213 10 12 Gaziosmanpaşa Bulvarı Yar Ahmet Mah. Karatay / Konya No:185/A Tokat Phone: (0332) 350 08 80 Fax: (0332) 353 30 80 Ordu Branch Phone: (0356) 214 07 07 Fax: (0356) 213 11 50
Karaman Branch Şarkiye Mah. Kazım Karabekir Cad. No:7 Ordu Trabzon Branch Phone: (0452) 223 30 50 Fax: (0452) 223 30 65 Fenari Mah. 9. Sok. Şimşek İş Merkezi No:4/A Kemerkaya Mah. Kahramanmaraş Cad. No:37/A Karaman Osmaniye Branch Trabzon Phone: (0338) 214 30 15 Fax: (0338) 214 30 65 İstiklal Mah. Atatürk Cad. No:150 Osmaniye Phone: (0462) 321 93 00 Fax: (0462) 321 94 70 Kırıkkale Branch Phone: (0328) 812 00 66 Fax: (0328) 814 86 66 Uşak Branch
Yenidoğan Mah. Barbaros Hayrettin Cad. Rize Branch Kurtuluş Mah. İsmetpaşa Cad. Mavi Plaza İş No:24/A Kırıkkale Tevfik İleri Cad. No:1 Rize Merkezi No:45/B Uşak Phone: (0318) 225 20 00 Fax: (0318) 225 26 17 Phone: (0464) 217 09 82 Fax: (0464) 217 09 77 Phone: (0276) 224 54 56 Fax: (0276) 224 61 30
Kütahya Branch Samsun Branch Van Branch
Cumhuriyet Cad. Karakol Sok. Acar Apt. No: 1/2 Kale Mah. Cumhuriyet Cad. No:14 Çarşı Mah. Cumhuriyet Cad. Vali Konağı Karşısı 43030 Kütahya 55030 Samsun No:118/A-B 65100 Van Phone: (0274) 216 85 85 Fax: (0274) 216 74 74 Phone: (0362) 432 51 52 Fax: (0362) 435 57 07 Phone: (0432) 210 23 40 Fax: (0432) 214 02 90
Malatya Branch Siirt Branch Yalova Branch
Hüseyin Bey Mah. Atatürk Cad. No: 26 44100 Bahçelievler Mah. Hazreti Fakirullah Cad. Yalı Cad. Gürer İş Merkezi No:11 Merkez/Yalova Malatya No:115/A Siirt Phone: (0226) 813 15 00 Fax: (0226) 811 59 43 Phone: (0422) 323 31 31 Fax: (0422) 323 47 77 Phone: (0484) 223 10 51 Fax: (0484) 223 10 61
245