13th Aug 2007 07:00
Turkiye Is Bankasi12 August 2007 With 71% Increase, Isbank Gained TRY 766 Million Net Profit for 2007H1 Mr. Ersin Ozince, the Chief Executive Officer of Isbank, made the followingstatements regarding Isbank's financial performance in 2007H1: In the first half of the year, in which the political atmosphere and theresulting expectations had a significant impact on the sector's economicperformance, in general, Isbank maintained its quality based asset generatingpolicy, paying utmost attention to maturity match and cost of funding. In this context, especially in the second quarter of the first half, Isbank'sTRY placements concentrated on short term consumer finance, and the Bank keptgrowing at a rate very close to the sector average in the housing loans, whereinterest rates decreased to a moderate level, compared to the previous periods.In the first half of the year, Isbank's growth rate reached 20% in short termconsumer finance, while the housing loans grew by 10%. In FX loans, the FX based growth continued; though slightly slowing downcompared to the first quarter of the year and grew by 18%. However, in the sameperiod, Isbank's total loans grew by %4.4 given the depreciation of foreigncurrency. Despite the 4% increase in Isbank's TRY securities portfolio, there has not beenany remarkable change in the total securities portfolio due to the decline in FXrates. Profitability was the main focus in terms of deposit policy in the first sixmonths of 2007. In this period, although Isbank's total deposits increased by1%, the share of savings deposits, which constitute a widespread base in thetotal deposits, increased from 55% to 61%. The positive change in the market values of Isbank's listed subsidiaries and thesecurites portfolio contributed to the growth in Isbank's equity. Since Isbank'ssubsidiaries had a profitable financial year in 2006, the dividend income of theBank increased by 119% on a year-on-year base, reaching TRY 136 million. In thefirst half of the year, within the framework of Isbank's transparency orientedpolicies for its group companies, the profit amounting to TRY 45 millionregarding the public offering of Is Yatirim Menkul Kiymetler A.S. and theprofits gained from the sale of Is Portfoy Yonetimi A.S. to Is Yatirim MenkulKiymetler A.S. has also contributed Isbank's performance in the first half of2007. Isbank had a positive performance in terms of increase in net commissionsand fees in the second quarter of 2007, compared to the first quarter andperformed a 10% increase in this item, compared to the same period of theprevious year. While Isbank increased its assets by 2% in the first half of 2007, it alsoincreased its profit by a remarkable level of 71%, compared to the same periodof the previous year and succeeded in increasing its profit to TRY 449 millionfrom TRY 766 million. TURKIYE IS BANKASI A.S. UNCONSOLIDATED BALANCE SHEET TRY THOUSAND CURRENT PERIOD PREVIOUS PERIODASSETS ( 30/06/2007) ( 31/12/2006) TRY FX Total TRY FX TotalI. CASH AND BALANCES WITH THE CENTRAL BANK OF 3,518,395 2,555,660 6,074,055 3,055,130 2,540,976 5,596,106TURKEYII. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT 864,253 64,157 928,410 293,429 45,413 338,842AND LOSS (Net)2.1. Trading Financial Assets 774,065 62,341 836,406 254,766 44,926 299,6922.1.1. Government Debt Securities 770,595 52,983 823,578 251,377 35,387 286,7642.1.2. Securities Representing Share in Equity 55 0 55 110 0 1102.1.3. Other Marketable Securities 3,415 9,358 12,773 3,279 9,539 12,8182.2. Financial Assets Classified at Fair Value 0 0 0 0 0 0Through Profit and Loss2.2.1. Government Debt Securities 0 0 0 0 0 02.2.2. Securities Representing Share in Equity 0 0 0 0 0 02.2.3. Other Marketable Securities 0 0 0 0 0 02.3. Trading Derivative Financial Assets 90,188 1,816 92,004 38,663 487 39,150III. BANKS AND OTHER FINANCIAL INSTITUTIONS 94,950 6,193,053 6,288,003 67,702 6,385,961 6,453,663IV. RECEIVABLES FROM INTERBANK MONEY MARKETS 0 0 0 0 0 04.1. Interbank Money Market Placements 0 0 0 0 0 04.2. Istanbul Stock Exchange Money Market 0 0 0 0 0 0Placements4.3. Receivables from Reverse Repurchase Agreements 0 0 0 0 0 0V. FINANCIAL ASSETS AVAILABLE-FOR-SALE (Net) 14,245,518 10,817,826 25,063,344 14,151,427 11,868,318 26,019,7455.1. Securities Representing Share in Equity 13,441 0 13,441 13,441 0 13,4415.2. Government Debt Securities 14,232,077 9,725,702 23,957,779 14,137,986 11,012,050 25,150,0365.3. Other Marketable Securities 0 1,092,124 1,092,124 0 856,268 856,268VI. LOANS 23,079,588 8,058,813 31,138,401 22,352,733 7,465,583 29,818,3166.1. Loans 23,079,588 8,058,813 31,138,401 22,352,733 7,465,583 29,818,3166.2. Loans Under Follow-up 1,435,473 2,596 1,438,069 1,161,247 2,968 1,164,2156.3. Specific Provisions (-) 1,435,473 2,596 1,438,069 1,161,247 2,968 1,164,215VII. FACTORING RECEIVABLES 0 0 0 0 0 0VIII. INVESTMENTS HELD-TO-MATURITY (Net) 0 0 0 0 0 08.1. Government Debt Securities 0 0 0 0 0 08.2. Other Marketable Securities 0 0 0 0 0 0IX. INVESTMENTS AND ASSOCIATES (Net) 766,434 0 766,434 785,129 0 785,1299.1. Investments and Associates Consolidated under 0 0 0 0 0 0Equity Method9.2. Unconsolidated Investments and Associates 766,434 0 766,434 785,129 0 785,1299.2.1. Financial Investments and Associates 48,895 0 48,895 48,895 0 48,8959.2.2. Non-Financial Investments and Associates 717,539 0 717,539 736,234 0 736,234X. SUBSIDIARIES (Net) 4,154,389 42,819 4,197,208 3,864,385 45,493 3,909,87810.1. Unconsolidated Financial Subsidiaries 2,026,621 42,819 2,069,440 1,834,724 45,493 1,880,21710.2. Unconsolidated Non-Financial Subsidiaries 2,127,768 0 2,127,768 2,029,661 0 2,029,661XI. JOINTLY CONTROLLED ASSOCIATES (Net) 0 0 0 0 0 011.1. Jointly Controlled Associates Consolidated 0 0 0 0 0 0under Equity Method11.2. Unconsolidated Jointly Controlled Associates 0 0 0 0 0 011.2.1. Financial Jointly Controlled Associates 0 0 0 0 0 011.2.2. Non-Financial Jointly Controlled Associates 0 0 0 0 0 0XII. LEASE RECEIVABLES (Net) 0 0 0 0 0 012.1. Financial Lease Receivables 0 0 0 0 0 012.2. Operational Lease Receivables 0 0 0 0 0 012.3. Other 0 0 0 0 0 012.4. Unearned Income ( - ) 0 0 0 0 0 0XIII. DERIVATIVE FINANCIAL ASSETS FOR HEDGING 0 0 0 0 0 013.1. Fair Value Hedging 0 0 0 0 0 013.2. Cash Flow Hedging 0 0 0 0 0 013.3. Net Foreign Investment Hedging 0 0 0 0 0 0XIV. PROPERTY AND EQUIPMENT (Net) 1,763,139 3,402 1,766,541 1,762,634 3,703 1,766,337XV. INTANGIBLE ASSETS (Net) 41,236 0 41,236 15,328 0 15,32815.1. Goodwill 0 0 0 0 0 015.2. Other 41,236 0 41,236 15,328 0 15,328XVI. TAX ASSETS 259,239 0 259,239 263,707 0 263,70716.1. Current Tax Assets 0 0 0 0 0 016.2. Deferred Tax Assets 259,239 0 259,239 263,707 0 263,707XVII. ASSETS HELD FOR SALE (Net) 10,250 0 10,250 14,843 0 14,843XIX. OTHER ASSETS 262,912 93,445 356,357 173,018 49,846 222,864TOTAL ASSETS 49,060,303 27,829,175 76,889,478 46,799,465 28,405,293 75,204,758 TURKIYE IS BANKASI A.S. UNCONSOLIDATED BALANCE SHEET TRY THOUSAND CURRENT PERIOD PREVIOUS PERIODLIABILITIES ( 30/06/2007) ( 31/12/2006) TRY FX Total TRY FX TotalI. DEPOSITS 29,730,197 17,181,933 46,912,130 28,288,192 18,111,163 46,399,355II. TRADING DERIVATIVE FINANCIAL LIABILITIES 4,247 30,535 34,782 151 45,018 45,169III. FUNDS BORROWED 3,435,895 7,568,962 11,004,857 2,952,181 7,577,774 10,529,955IV. INTERBANK MONEY MARKET PAYABLES 1,568,401 2,740,834 4,309,235 1,965,086 3,399,167 5,364,2534.1. Interbank Money Market Payables 0 0 0 0 0 04.2. Istanbul Stock Exchange Money Market Payables 0 0 0 0 0 04.3. Funds Provided Under Repurchase Agreements 1,568,401 2,740,834 4,309,235 1,965,086 3,399,167 5,364,253V. MARKETABLE SECURITIES ISSUED (Net) 0 0 0 0 0 05.1. Bills 0 0 0 0 0 05.2. Asset-backed Securities 0 0 0 0 0 05.3. Bonds 0 0 0 0 0 0VI. FUNDS 0 0 0 0 0 0VII. MISCELLANEOUS PAYABLES 1,296,368 30,505 1,326,873 1,033,264 124,037 1,157,301VIII. OTHER EXTERNAL RESOURCES 180,275 840,655 1,020,930 46,490 98,484 144,974IX. FACTORING PAYABLES 0 0 0 0 0 0X. LEASE PAYABLES (Net) 0 77,961 77,961 0 72,311 72,31110.1. Financial Lease Payables 0 87,065 87,065 0 80,328 80,32810.2. Operational Lease Payables 0 0 0 0 0 010.3. Other 0 0 0 0 0 010.4. Deferred Financial Lease Expenses ( - ) 0 9,104 9,104 0 8,017 8,017XI. DERIVATIVE FINANCIAL LIABILITIES FOR HEDGING 0 0 0 0 0 011.1. Fair Value Hedging 0 0 0 0 0 011.2. Cash Flow Hedging 0 0 0 0 0 011.3. Net Foreign Investment Hedging 0 0 0 0 0 0XII. PROVISIONS 1,782,455 100,637 1,883,092 1,735,826 107,321 1,843,14712.1. General Provisions 237,730 407 238,137 216,550 458 217,00812.2. Provision for Restructuring 0 0 0 0 0 012.3. Reserves for Employee Benefits 139,013 0 139,013 124,654 0 124,65412.4. Insurance Technical Reserves (Net) 0 0 0 0 0 012.5. Other Provisions 1,405,712 100,230 1,505,942 1,394,622 106,863 1,501,485XII. TAX LIABILITIES 236,025 192 236,217 237,974 161 238,13513.1. Current Tax Liabilities 236,025 192 236,217 237,974 161 238,13513.2. Deferred Tax Liabilities 0 0 0 0 0 0XIV. LIABILITIES HELD FOR SALE 0 0 0 0 0 0XV. SUBORDINATED LOANS 0 0 0 0 0 0XVI. SHAREHOLDERS' EQUITY 10,080,392 3,009 10,083,401 9,376,285 33,873 9,410,15816.1. Paid-in Capital 2,756,585 0 2,756,585 2,756,585 0 2,756,58516.2. Capital Reserves 3,700,620 3,009 3,703,629 3,284,465 33,873 3,318,33816.2.1. Share premium 3,694 0 3,694 3,694 0 3,69416.2.2. Share Cancellation Profits 0 0 0 0 0 016.2.3. Marketable Securities Value Increase Fund 1,719,435 3,009 1,722,444 1,303,280 33,873 1,337,15316.2.4. Revaluation Surplus on Tangible Fixed 0 0 0 0 0 0Assets16.2.5. Revaluation Surplus on Intangible Fixed 0 0 0 0 0 0Assets16.2.6. Bonus Shares from Investments and 0 0 0 0 0 0Associates, Subsidiaries and Jointly ControlledAssociates16.2.7. Hedge Funds (Effective Portion) 0 0 0 0 0 016.2.8. Revaluation Surplus on Assets Held for 0 0 0 0 0 0Trading Purposes16.2.9. Other Capital Reserves 1,977,491 0 1,977,491 1,977,491 0 1,977,49116.3. Profit Reserves 2,857,432 0 2,857,432 1,844,196 0 1,844,19616.3.1. Legal Reserves 1,012,375 0 1,012,375 923,041 0 923,04116.3.2. Status Reserves 0 0 0 0 0 016.3.3. Extraordinary Reserves 1,845,621 0 1,845,621 921,953 0 921,95316.3.4. Other Profit Reserves -564 0 -564 -798 0 -79816.4. Profit or Loss 765,755 0 765,755 1,491,039 0 1,491,03916.4.1. Prior Years' Profit/Loss 0 0 0 381,821 0 381,82116.4.2. Current Year Profit/Loss 765,755 0 765,755 1,109,218 0 1,109,218TOTAL LIABILITIES 48,314,255 28,575,223 76,889,478 45,635,449 29,569,309 75,204,758 TURKIYE IS BANKASI A.S. INCOME STATEMENT TRY THOUSANDINCOME STATEMENT CURRENT PREVIOUS CURRENT PREVIOUS PERIOD PERIOD PERIOD PERIOD ( 30/06/ ( 30/06/ (01/04/2007 (01/04/2006 2007) 2006) -30/06/ -30/06/ 2007) 2006)I. INTEREST INCOME 4,447,708 3,547,746 2,201,139 1,908,2151.1. Interest Income on Loans 2,430,113 1,931,727 1,214,597 1,052,8671.2. Interest Received from Reserve Deposits 137,402 84,003 69,982 46,8291.3. Interest Received from Banks 130,811 48,159 66,489 24,5151.4. Interest Received from Money Market Transactions 3,425 16,507 1,237 6,9111.5. Interest Received from Marketable Securities Portfolio 1,680,441 1,418,923 817,798 754,5551.5.1. Trading Financial Assets 33,158 29,023 18,151 1,4911.5.2. Financial Assets at Fair Value Through Profit and Loss 0 0 0 01.5.3. Available-for-sale Financial Assets 1,647,077 1,361,761 799,650 737,7491.5.4. Held to Maturity Investments 206 28,139 -3 15,3151.6. Financial Lease Income 0 0 0 01.7. Other Interest Income 65,516 48,427 31,036 22,538II. INTEREST EXPENSE 3,132,081 2,175,138 1,565,721 1,168,7332.1. Interest on Deposits 2,406,161 1,717,400 1,181,229 921,2122.2. Interest on Funds Borrowed 435,899 310,099 222,751 162,1222.3. Interest on Money Market Transactions 276,866 138,561 151,758 81,8362.4. Interest on Securities Issued 0 0 0 02.5. Other Interest Expense 13,155 9,078 9,983 3,563III. NET INTEREST INCOME (I - II) 1,315,627 1,372,608 635,418 739,482IV. NET FEES AND COMMISSIONS INCOME 558,726 518,789 293,419 251,7614.1. Fees and Commissions Received 627,259 569,210 331,406 280,4404.1.1. Cash Loans 61,836 50,227 34,320 19,7424.1.2. Non-cash Loans 40,681 38,473 20,071 18,9974.1.3. Other 524,742 480,510 277,015 241,7014.2. Fees and Commissions Paid 68,533 50,421 37,987 28,6794.2.1. Cash Loans 16,548 14,493 10,061 10,5864.2.2. Non-cash Loans 61 3 54 14.2.3. Other 51,924 35,925 27,872 18,092V. DIVIDEND INCOME 135,584 61,860 114,390 47,338VI. TRADING INCOME (NET) 203,094 -37,013 122,342 -30,2436.1. Profit/Losses on Trading Account Securities 207,444 202,069 94,652 200,6036.2. Foreign Exchange Gains/Losses -4,350 -239,082 27,690 -230,846VII. OTHER OPERATING INCOME 280,827 492,301 152,439 287,355VIII. TOTAL OPERATING INCOME (III+IV+V+VI+VII) 2,493,858 2,408,545 1,318,008 1,295,693IX. PROVISION FOR LOAN LOSSES OR OTHER RECEIVABLES (-) 554,754 703,787 305,490 383,244X. OTHER OPERATING EXPENSES (-) 1,000,906 885,330 518,954 501,814XI. NET OPERATING INCOME (VIII-IX-X) 938,198 819,428 493,564 410,635XII. EXCESS AMOUNT OF INCOME AFTER MERGER 0 0 0 0XIII. PROFIT/LOSSES FROM ASSOCIATES AND SUBSIDIARIES CONSOLIDATED 0 0 0 0UNDER EQUITY METHODXIV. NET MONETARY POSITION GAIN/LOSS 0 0 0 0XV. INCOME BEFORE TAXES (XI+XII+XIII+XIV) 938,198 819,428 493,564 410,635XVI. PROVISION FOR TAXES ON INCOME (+/-) 172,443 370,508 95,191 213,33516.1. Current Provision for Tax 200,130 7,569 108,090 -128,73816.2. Deferred Provision for Tax -27,687 362,939 -12,899 342,073XVII. NET OPERATING INCOME/EXPENSE AFTER TAXES (XV +/- XVI) 765,755 448,920 398,373 197,30017.1. Ceased Operations 0 0 0 017.2. Other 765,755 448,920 398,373 197,300XVIII. NET PERIOD PROFIT/LOSS (XVIII+XIX) 765,755 448,920 398,373 197,300Earnings/Losses per Share (in full TRY) 0.011110978 0.006513755 0.005780326 0.002862791 EXPLANATIONS RELATED TO ACCOUNTING POLICIES PRESENTATION OF FINANCIAL STATEMENTS The unconsolidated year-end financial statements and related disclosures andfootnotes in this report are prepared in accordance with the Turkish AccountingStandards and the Regulation on Accounting Practice for Banks and Safeguardingof Documents. The accounting policies and the valuation principles used in the preparation ofthe financial statements are presented in detail below: The accounting principles and valuation methods used in the preparation of30.06.2006 financial statements, which are presented in comparison with the30.06.2007 financial statements, are revised in compliance with the TurkishAccounting Standards and Turkish Financial Reporting Standards as per thecommunique no.1 "Frame for Preparation and Presentation of Financial Statements"of the Turkish Accounting Standards Board published on the Official Gazetteno.25702 dated 16 January 2005, as summarized below: 30.06.2006 31.12.2005 Income Statement Income Statement and Retained EarningsNet period profit/retained earnings reported prior to TAS 744,856 955,628adjustmentsFinancial assets' valuation differences -4,761 766,588Adjustment for the term sales of assets -168,627 168,627Adjustment for bonus shares from investments and associates 42,630 99,302Adjustment for profit from fixed assets and participations' sales 3,298 141,300Adjustment for short-term employee benefits -4,001 -87,095Adjustment for the actual and technical deficit of Isbank Pension 43,436 -860,485FundDeferred tax effects of adjustments -207,911(*) 389,539 448,920 1,573,404Current period profit on sale of real estates transferred to equity - -70,909Net period profit/retained earnings reported after TAS adjustments 448,920 1,502,495 (*) The decrease in Corporate Tax rate from 30% to 20% has a significant effecton the changes in the Deferred Tax Adjustments between the periods31.03.2006-30.06.2006. CAPITAL ADEQUACY STANDARD RATIO The Bank's capital adequacy ratio is 18.93 %. The capital adequacy standard ratio is calculated by risk weighting ofrisk-weighted assets and non-cash loans in accordance with the relevantlegislation, and by adding to the risk-weighted assets the value subject to riskdetermined by use of the Standard Method. Information related to capital adequacy ratio: Risk Weights Bank Only 0% 20% 50% 100%Amount Subject to Credit RiskBalance Sheet Items (Net) 7,645,180 6,084,187 14,390,888 22,484,080Cash 330,877 926 0 0Securities in Redemption 4,576 0 0 0The Central Bank of Turkey 3,894,170 0 0 0Domestic and Foreign Banks, Foreign Head 0 6,014,310 0 198,288Offices and BranchesInterbank Money Market Placements 0 0 0 0Receivables from Reverse Repo 0 0 0 0TransactionsReserve Deposits 1,773,404 0 0 0Loans 1,197,201 1,906 14,051,357 14,835,455Loans under Follow-Up (Net) 0 0 0 0Lease Receivables 0 0 0 0Marketable Securities Available-for-Sale 0 0 0 0Marketable Securities Held to Maturity 0 0 0 0Receivables from Forward Sale of Assets 0 0 0 621Miscellaneous Receivables 6 0 0 153,127Accrued Interest and Income 87,367 67,045 339,531 720,203Investments and Associates, Subsidiaries 0 0 0 4,749,445and Jointly-controlled AssociatesTangible Fixed Assets 0 0 0 1,747,690Other Assets 357,579 0 0 79,251Off Balance Sheet Items 49,697 2,098,144 493,182 6,176,318Non-cash Loans and Commitments 49,697 1,848,760 493,182 6,164,030Derivative Financial Instruments 0 249,384 0 12,288Non- Risk-Weighted Accounts 0 0 0 0Total Risk Weighted Assets 7,694,877 8,182,331 14,884,070 28,660,398 Summary information about the bank only capital adequacy ratio: Current Period Prior PeriodAmount Subject to Credit Risk (ASCR) 37,738,899 35,970,835Amount Subject to Market Risk (ASMR) 4,669,038 861,700Amount Subject to Operational Risk (ASOR) 5,816,076 -Shareholders' Equity 9,126,613 8,793,538Shareholders' Equity /(ASCR+ASMR+ASOR)*100 18.93 23.87 ASCR: Amount Subject to Credit Risk ASMR:Amount Subject to Market Risk ASOR: Amount Subject to Operational Risk (*) Operational risk will be taken into consideration in the calculation of thecapital adequacy ratio after 30.06.2007. Information about the shareholders' equity items: Current Period Prior Period (30.06.2007) (31.12.2006)CORE CAPITALPaid-In Capital 2,756,585 2,756,585Nominal Capital 2,756,585 2,756,585Capital Commitments (-) 0 0Capital Reserves from Inflation Adjustments to Paid-in Capital 1,977,491 1,977,491Share Premium 3,694 3,694Share Cancellation Profits 0 0Legal Reserves 1,012,375 923,041I. Legal Reserve (Turkish Commercial Code 466/1) 934,240 878,927II. Legal Reserve (Turkish Commercial Code 466/2) 78,135 44,114 Reserves Allocated due to Special Laws 0 0Status Reserves 0 0Other Profit Reserves -564 -30,025(*)Extraordinary Reserves 1,845,621 921,953Reserves Allocated by the General Assembly 1,845,621 921,953Retained Earnings 0 0Accumulated Loss 0 0Foreign Currency Share Capital Exchange Difference 0 0Reserves from Inflation Adjustments to Legal, Status and Extraordinary Reserves 0 0Profit 765,755 1,491,039Current Period Profit 765,755 1,109,218Prior Periods' Profit 0 381,821Provision for Possible Losses (upto 25% of Core Capital) 130,000 120,000Profit on Sale of Associates, Subsidiaries and Real Estates to be Transferred to 0 0Share CapitalPrimary Subordinated Debt (upto 15% of core Capital) 0 0Loss Excess of Reserves (-) 0 0Current Period Loss 0 0Prior Periods' Loss 0 0Leasehold Improvements (-) 29,100 32,116Prepaid Expenses (-) 93,048 51,787Intangible Fixed Assets (-) 41,236 15,328Deferred Tax Asset excess of 10% of core capital (-) 0 0Limit Excesses as per Paragraph 3 of Article 56 of the Banking Law (-) 0 0Total Core Capital (*) 8,490,957 8,163,778SUPPLEMENTARY CAPITALGeneral Reserves 238,137 217,00845% of Revaluation Surplus Movables 0 045% of Revaluation Surplus on Immovables 0 0Bonus Shares of Associates, Subsidiaries and Jointly-controlled Associates 0 0Primary Subordinated Debt Excluding the Portion included in Core Capital 0 0Secondary Subordinated Debt 0 045% of Securities Value Increase Fund 775,100 614,871Associates and Subsidiaries 774,535 680,852Financial Assets Available for Sale 565 -65,981Inflation Adjustments to Capital Reserves, Profit Reserves and Prior Periods' Profit 0 0/Loss (excluding the inflation adjustments to legal reserves, status reserves andextraordinary reserves)Total Supplementary Capital 1,013,237 831,879 TIER III CAPITAL 0 0CAPITAL 9,504,194 8,995,657DEDUCTIONS FROM THE CAPITAL 377,581 202,119Unconsolidated investments in entities (domestic/foreign) operating in Banking and 214,197 102,888Financial Sectors at 10% or moreInvestments in entities (domestic/foreign) operating in Banking and Financial Sectors 0 0at less than 10% exceeding 10% or more of the total core and supplementary capitalsLoans to banks, financial institutions (domestic/foreign) of qualified shareholders 0 0in the form of secondary subordinated debt and debt instruments purchased from suchparties qualified as primary or secondary subordinated debtLoans granted against the articles 50 and 51 of the Banking Law 0 0Net book values of immovables exceeding 50% of the capital and of assets acquired 0 0against overdue receivables and held for sale as per article 57 of the Banking Lawbut retained more than five yearsOthers 0 0TOTAL SHAREHOLDERS' EQUITY 9,126,613 8,793,538 (*) TRY (29,227) of the relavant amount stems from the exchange rate differencesarising from subsidiaries presented in Other Profit Reserves in the financialstatements dated 31.12.2006, are followed under Marketable SecuritiesRevaluation Fund, in line with the provisions of the Uniform Code of Accounts(UCA) and the Explanatory Manual, which was published in the Official Gazettedated 26.01.2007 and nr. 26415 and came into effect as at 01.01.2007. (**) Leasehold improvements, prepaid expenses and intangible fixed assets shownunder the core capital, are not included in the total of core capital in accordance with the related regulation, but shown under thedeductions from the capital. MARKET RISK: Amount(I) Capital to be Employed for General Market Risk - Standard Method 285,831(II) Capital to be Employed for Specific Risk - Standard Method 20,076(III) Capital to be Employed for Currency Risk - Standard Method 62,765(IV) Capital to be Employed for Commodity Risk - Standard Method(V) Capital to be Employed for Clearing Risk - Standard Method(VI) Capital to be Employed for Market Risk of Options - Standard Method 4,851(VII) Capital to be Employed for Market Risks of Banks Applying Risk Measurement Models(VIII) Total Capital to be Employed for Market Risk (I+II+III+IV+V+VI) 373,523(IX) Amount Subject to Market Risk (12.5 x VIII) or (12.5 x VII) 4,669,038 Information on currency risk: EURO USD Yen Other FX TotalCurrent PeriodAssets Cash (Cash in Vault, Foreign 2,498,665 47,714 124 9,157 2,555,660Currency, Money in Transit, Cheques Purchased) andBalances with the Central Bank of Turkey Due from Banks and Other Financial 993,910 4,223,002 2,463 973,678 6,193,053Institutions (1) Financial Assets at Fair Value 2,360 54,807 0 5,915 63,082through Profit/Loss Interbank Money Market Placements 0 0 0 0 0 Investment Securities Available for 1,338,021 9,479,805 0 0 10,817,826Sale Loans (2) 2,621,656 6,139,963 1,212 46,041 8,808,872 Investments in Associates, 42,819 0 0 0 42,819Subsidiaries and Joint-Ventures Investment Securities Held to 0 0 0 0 0Maturity Derivative Financial Assets Held for 0 0 0 0 0Risk Management Tangible Assets (3) 0 63 0 235 298 Intangible Assets 0 0 0 0 0 Other Assets (3) 1,235 7,042 57 424 8,758Total Assets 7,498,666 19,952,396 3,856 1,035,450 28,490,368Liabilities Banks Deposits 74,839 897,662 6 36,116 1,008,623 Foreign Currency Deposits (4) 6,650,378 8,651,704 8,898 862,330 16,173,310 Interbank Funds 652,506 2,088,328 0 0 2,740,834 Funds Provided from Other Financial 18,506 7,540,238 514 9,704 7,568,962Institutions Marketable Securities Issued 0 0 0 0 0 Miscellaneous Payables 3,338 25,117 19 2,031 30,505 Derivative Financial Liabilities Held 0 0 0 0 0for Risk Management Other Liabilities (3) 117,146 896,976 268 9,153 1,023,543Total Liabilities 7,516,713 20,100,025 9,705 919,334 28,545,777 Net On Balance Sheet Position -18,047 -147,629 -5,849 116,115 -55,409Net Off Balance Sheet Position -398,020 -588,352 0 27,252 -959,120 Financial Derivative Assets (5) 155,190 2,131,002 9,148 39,082 2,334,422 Financial Derivative Liabilities (5) 553,210 2,719,354 9,148 11,830 3,293,542 Non-Cash Loans 1,357,874 2,889,846 48,318 72,410 4,368,448 Previous Period Total Assets 8,287,006 20,080,043 3,843 902,197 29,273,089 Total Liabilities 8,157,498 20,420,839 14,155 900,797 29,493,289 Net On Balance Sheet Position 129,508 -340,796 -10,312 1,400 -220,200 Net Off Balance Sheet Position -343,866 41,978 0 28,018 -273,870 Derivative Assets 974,756 1,717,987 0 40,309 2,733,052 Derivative Liabilities 1,318,622 1,676,009 0 12,291 3,006,922 Non-Cash Loans 1,306,026 3,308,908 56,668 66,868 4,738,470 (1) TRY 798,602 of the asset amount of TRY 973,678 shown in the Other FX columnis in GBP and the remaining TRY 175,076 is in other foreign currencies.. (2) Includes foreign currency indexed loans, which are followed under TRYaccounts. TRY 478,764 of these loans amounting to TRY 750,059 are USD indexedand TRY 271,295 of them are EUR indexed. (3) In accordance with the principles of the "Regulation on Measurement andPractices of Banks' Net Overall FX Position / Shareholders' Equity Ratio on aConsolidated and Unconsolidated Basis", Derivative Financial Instruments ForeignCurrency Income Accruals (TRY 1,075), Leasehold Improvements (TRY 3,104),Prepaid Expenses (TRY 84,687)in asset items and General Reserves (TRY 407),Derivative Financial Instruments Foreign Currency Expense Accruals (TRY 26,030)and shareholders' equity (TRY 3,009) in liabilities are not taken intoconsideration in the currency risk measurement. (4) TRY 691,014 of the liability amount of TRY 862,330 shown in the Other FXcolumn is in GBP and TRY 97,220 is in CHF. The remaining TRY 74,096 is in otherforeign currencies. (5) The derivative transactions are taken into consideration within the contextof the forward foreign currency trading definitions in the above mentionedRegulation. Presentation of assets and liabilities according to their remaining maturities: Demand Up to 1 1-3 3-6 6-12 1 Year Not Total Month Months Months Months and Longer Classified (1)Current Period (30.06.2007)AssetsCash (Cash in Vault, Foreign 6,074,055 0 0 0 0 0 0 6,074,055Currency, Money in Transit,Cheques Purchased) andBalances with the Central Bankof TurkeyDue from Banks and Other 327,844 3,780,124 220,738 39,874 3,270 1,916,153 0 6,288,003Financial InstitutionsFinancial Assets at Fair Value 56 4,655 80,718 135,884 498,208 208,889 0 928,410through Profit/LossInterbank Money Market 0 0 0 0 0 0 0 0PlacementsInvestment Securities 71,877 0 2,006,437 709,650 3,113,206 19,162,174 0 25,063,344Available-for-SaleLoans 0 4,413,391 2,309,357 1,944,489 4,847,076 17,624,088 0 31,138,401Investment Securities 0 0 0 0 0 0 0 0Held-to-MaturityOther Assets 7,118 170,210 25,494 1,267 0 52,192 7,140,984 7,397,265Total Assets 6,480,950 8,368,380 4,642,744 2,831,164 8,461,760 38,963,496 7,140,984 76,889,478 LiabilitiesBanks Deposits 179,306 2,081,987 55,942 6 8,892 0 0 2,326,133Other Deposits 7,529,735 28,199,949 6,520,681 1,408,119 848,932 78,581 0 44,585,997Funds Provided from Other 0 234,681 1,765,436 721,031 353,202 7,930,507 0 11,004,857Financial InstitutionsInterbank Funds Borrowed 0 1,977,759 378,397 1,507,391 49,916 395,772 0 4,309,235Marketable Securities Issued 0 0 0 0 0 0 0 0Miscellaneous Payables 801,692 505,546 1,486 89 0 18,060 0 1,326,873Other Liabilities 469 563,361 27,475 14,220 284,116 186,037 12,260,705 13,336,383Total Liabilities 8,511,202 33,563,283 8,749,417 3,650,856 1,545,058 8,608,957 12,260,705 76,889,478Liquidity Gap -2,030,252 -25,194,903 -4,106,673 -819,692 6,916,702 30,354,539 -5,119,721 0 Prior Period (31.12.2006) Total Assets 5,988,473 8,772,084 3,744,782 7,809,528 7,000,024 35,076,863 6,813,004 75,204,758Total Liabilities 8,406,085 32,833,894 9,244,035 3,662,381 4,496,372 5,259,245 11,302,746 75,204,758Liquidity Gap -2,417,612 -24,061,810 -5,499,253 4,147,147 2,503,652 29,817,618 -4,489,742 0 (1) Asset items, such as Fixed Assets, Subsidiaries and Associates, OfficeSupply Inventory, Prepaid Expenses and Non-Performing Loans, which are requiredfor banking operations and which can not be converted to cash in short-term, andother liabilities such as Provisions which are not considered as payables andshareholders' equity, are shown in 'Not Classified' column. Information on consumer loans, retail credit cards, personnel loans andpersonnel credit cards: Short-Term Medium and Interest and Total Long-Term Income AccrualsConsumer Loans-LC 370,261 5,960,552 353,494 6,684,307Real Estate Loans 10,494 2,865,719 258,183 3,134,396Automotive Loans 28,701 854,336 55,359 938,396General Purpose Consumer Loans 331,018 2,239,550 39,907 2,610,475Other Consumer Loans 48 947 45 1,040Consumer Loans - FC Indexed 2,570 102,076 11,666 116,312Real Estate Loans 1,049 91,436 10,577 103,062Automotive Loans 1,521 10,639 1,089 13,249General Purpose Consumer Loans 0 1 0 1Other Consumer Loans Indexed to FC 0 0 0 0Consumer Loans - FC 0 0 0 0Real Estate Loans 0 0 0 0Automotive Loans 0 0 0 0General Purpose Consumer Loans 0 0 0 0Other FC Consumer Loans 0 0 0 0Retail Credit Cards-LC 2,806,277 64,855 29,195 2,900,327 Installment Based 850,283 64,855 0 915,138 Other Credit Cards 1,955,994 0 29,195 1,985,189Retail Credit Cards-FC 0 0 0 0 Installment Based 0 0 0 0 Other Credit Cards 0 0 0 0Personnel Loans-LC 15,359 127,499 5,113 147,971Real Estate Loans 125 41,455 3,184 44,764Automotive Loans 116 8,664 515 9,295General Purpose Consumer Loans 15,118 77,366 1,413 93,897Other Consumer Loans 0 14 1 15Personnel Loans- FC Indexed 0 1,256 25 1,281Real Estate Loans 0 1,165 14 1,179Automotive Loans 0 32 0 32General Purpose Consumer Loans 0 59 11 70Other Consumer Loans 0 0 0 0Personnel Loans-FC 0 0 0 0Real Estate Loans 0 0 0 0Automotive Loans 0 0 0 0General Purpose Consumer Loans 0 0 0 0Other Consumer Loans 0 0 0 0Personnel Credit Cards-LC 48,594 0 124 48,718 Installment Based 16,163 0 0 16,163 Other Credit Cards 32,431 0 124 32,555Personnel Credit Cards-FC 0 0 0 0 Installment Based 0 0 0 0 Other Credit Cards 0 0 0 0Overdraft Accounts - TRY (real 251,598 0 8,868 260,466persons)Overdraft Accounts - FC (real 0 0 0 0persons)Total 3,494,659 6,256,238 408,485 10,159,382 Installment based commercial loans and corporate credit cards: Short-Term Medium and Long Interest and Total Term Income AccrualsInstallment Based Commercial 561,862 5,981,213 389,901 6,932,976Loans-LCReal Estate Loans 5,128 382,685 20,078 407,891Automotive Loans 98,476 2,022,805 117,135 2,238,416General Purpose Commercial Loans 420,417 3,193,782 170,322 3,784,521Other Commercial Loans 37,841 381,941 82,366 502,148Installment Based Commercial Loans- 11,610 208,333 14,108 234,051FC IndexedReal Estate Loans 415 28,934 3,301 32,650Automotive Loans 6,091 125,584 9,095 140,770General Purpose Commercial Loans 5,104 53,815 1,712 60,631Other Commercial Loans 0 0 0 0Installment Based Commercial 0 0 0 0Loans-FCReal Estate Loans 0 0 0 0Automotive Loans 0 0 0 0General Purpose Commercial Loans 0 0 0 0Other Commercial Loans 0 0 0 0Corporate Credit Cards-LC 183,021 0 156 183,177 Installment Based 0 0 0 0 Other Credit Cards 183,021 0 156 183,177Corporate Credit Cards-FC 0 0 0 0 Installment Based 0 0 0 0 Other Credit Cards 0 0 0 0Overdraft Accounts - TRY 664,508 0 24,362 688,870(corporate)Overdraft Accounts - FC (corporate) 0 0 0 0Total 1,421,001 6,189,546 428,527 8,039,074 Specific provisions provided against loans: Specific Provisions Current Period Previous Period Loans and Receivables with Limited Collectibility 90,648 117,524Loans and Receivables with Doubtful Collectibility 231,120 156,695Uncollectible Loans and Receivables 1,116,301 889,996Total 1,438,069 1,164,215 The changes in total loans under follow-up: Group III Group IV Group V Loans and Receivables Loans and Uncollectible Loans Receivables with and Receivables with Limited Doubtful Collectibility CollectibilityPrevious Period End Balance 117,524 156,695 889,996Additions (+) 277,001 6,176 174,140Transfers from Other Categories of 0 243,378 131,051Loans Under Follow-Up (+)Transfers to Other Categories of Loans 243,378 131,051 0Under Follow-Up (-)Collections (-) 60,469 43,864 75,862Write-Offs (-) 30 214 3,024Current Period End Balance 90,648 231,120 1,116,301Specific Provisions (-) 90,648 231,120 1,116,301Net Balance on Balance Sheet 0 0 0 Provision expenses due to Bank's loans and other receivables: Current Period Prior Period Specific Provisions for Loans and Other Receivables 385,700 187,110 From Group III Loans and Receivables 219,734 160,013From Group IV Loans and Receivables 3,201 1,538From Group V Loans and Receivables 162,765 25,559General Provision Expenses 21,180 34,060Optional Provisions Allocated for Probable Risks 10,000 0Marketable Securities Impairment Expense 86,280 91,443Financial Assets at Fair Value through Profit and Loss 12 196Financial Assests Available-for-sale 86,268 91,247Impairment Losses on Participations 18,695 184,543Investment and Associates 18,695 27,348Subsidiaries 0 157,195Jointly Controlled Associates 0 0Securities Held-to-Maturity 0 0Others 32,899 206,631Total 554,754 703,787 Other operating expenses: Current Period Prior PeriodPersonnel Expenses 534,800 457,287Reserve for Employee Termination Benefits 9,086 796Bank Pension Fund Deficit Provisions 0 10,912Impairment Losses on Tangible Fixed Assets 0 0Depreciation Expenses of Tangible Fixed Assets 55,488 48,455Impairment Losses on Intangible Fixed Assets 0 0Depreciation Expenses of Intangible Fixed Assets 4,623 0Impairment Losses on Assets to be Disposed 0 0Depreciation Expenses of Assets to be Disposed 5,769 0Impairment Losses on Assets Held for Sale 0 0Other Operating Expenses 289,321 258,227Operational Lease Expenses 27,485 21,582Repair and Maintenance Expenses 5,050 3,772Advertisement Expenses 91,278 85,729Other Expenses 165,508 147,144Loss on Sales of Assets 1,654 16,106Others 100,165 93,547Total 1,000,906 885,330 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Turkiye Gdr Rgs