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ARAP TÜRK BANKASI A.Ş.
NOTES TO UNCONSOLIDATED FINANCIAL
STATEMENTS AT 31 DECEMBER 2013
( Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL
STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
4
GENERAL INFORMATION
50
CORPORATE MANAGEMENT
67
FINANCIAL INFORMATION
A&T BANK 2013 ANNUAL REPORT
XXI. INFORMATION ON GOVERNMENT INCENTIVES
There are no government incentives utilized by the Bank as of 31 December 2013 and 31 December 2012.
XXII. INFORMATION ON SEGMENT REPORTING
Operating segment is the unit that operates in only one product or service of the Bank or the group of products or services which are
related each other and differs from other units from the point of risk and profit. Operating segments are presented in the footnote XIV
of Fourth Section.
XXIII. OTHER DISCLOSURES
Profit reserves and profit distribution
Retained earnings other than legal reserves are available for distribution, subject to legal reserve requirement referred to below.
The legal reserves are comprised of first and second reserves, in accordance with the Turkish Commercial Code (“TCC”). The first
legal reserve is appropriated out of the profits at the rate of 5% until the total reserve reaches a maximum of 20% of the Bank’s paid
in capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of the 5% of the Company’s share
capital; however holding companies are not subject to this application. First and second legal reserves can only be used to compensate
accumulated losses and cannot be used for profit distribution unless they exceed 50% of paid-in capital.
Related parties
In accompanying financial statements, shareholders, key management personnel and board members together with their families and
companies controlled by or affiliated by them associated and jointly controlled entities are considered as Related Parties in compliance
with TAS 24 - Related Party Disclosures Standard. Related parties are presented V footnote of Fifth Section.
Cash and cash equivalents
In the cash flows statements “Cash” refers to cash in vault, cash in transit, bank cheques purchased and demand deposits in banks
including Central Bank of Turkey; “Cash equivalent” refers to money market placements and time deposits at banks which has original
maturity less than three months.
SECTION FOUR
INFORMATION ON THE FINANCIAL POSITION OF THE BANK
I. INFORMATION ON CAPITAL ADEQUACY RATIO
The capital adequacy ratio calculations are applied in accordance with the “Regulation on Measurement and Evaluation of Capital
Adequacy of Banks” published in Official Journal No 28337 of 28 June 2012 from 1 July 2012. The solo basis capital adequacy ratio
of the Bank in accordance with the “Regulation on Measurement and Evaluation of Capital Adequacy of Banks” is 14.65% as of 31
December 2013 (31 December 2012: 22.77%).
The risk measurement methods used in the determination of the capital adequacy ratio:
In the calculation process of capital adequacy ratio, the data which are compatible with current regulations are used. In this case, the
market and credit risk are also taken into account as “Trading Accounts” and “Banking Accounts”.
The items which are deducted from trading accounts and shareholders’ equity are not considered in the calculation of the credit risk.
Depleted and amortized assets are taken into consideration by net amounts which are calculated by the deduction of depreciation cost
and provisions.