Page 197 - A&T BANK ANNUAL REPORT 2012

195 194 A&T BANK 2012 ANNUAL REPORT •
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
CONSOLIDATED FINANCIAL REPORT
AS OF 31 DECEMBER 2012
(Currency: Thousands of Turkish Lira (“TL”) unless otherwise stated)
Convenience Translation of Consolidated Financial
Report Originally Issued in Turkish
See Note on I. in Section Three
Exposed currency risk
The possible increases or decreases in the shareholders’ equity and the profit/loss as per an assumption of devaluation/
appreciation by 10% of TL against currencies mentioned below as of 31 December 2012 and 2011 are presented in the below
table. The other variables, especially the interest rates, are assumed to be fixed in this analysis.
Assuming 10% devaluation of TL;
31 December 2012 31 December 2011
Income Statement Shareholders’ Equity (*) Income Statement Shareholders’ Equity (*)
US Dollar (56) (56) (37) (37)
Euro 54 54 9 9
Other Currencies -- -- 12 12
Total (2) (2) (16) (16)
(*) The effect on shareholders’ equity also includes the effect on the profit/loss.
Assuming 10% appreciation of TL;
31 December 2012 31 December 2011
Income Statement Shareholders’ Equity (*) Income Statement Shareholders’ Equity (*)
US Dollar 56 56 37 37
Euro (54) (54) (9) (9)
Other Currencies -- -- (12) (12)
Total 2 2 16 16
(*) The effect on shareholders’ equity also includes the effect on the profit/loss.
VI. Information on interest rate risk
Interest rate sensitivity of the assets, liabilities and off-balance sheet items
Within the context of the market risk management of the Risk Management Department, the Bank’s interest rate risk is
calculated and analyzed taking different dimensions of the issue in consideration. The interest rate risk is measured according
to market risk calculated using the standard method and is included in the capital adequacy ratio. To test the effect of the
interest rate fluctuations on the Bank monthly based stress test analysis are done.
In addition, by classifying the changes in risk factors different scenario analysis are done based on different interest rate
expectations. The sensitivity of assets, liabilities and off-balance sheets against interest rate are measured by an analysis on a
monthly basis.
The table below shows the effects of changes in interest rates on the consolidated financial statements of the Bank. The
sensitivity of the income statement is the effect of possible changes in the interest rates on the net interest income of floating
rate financial assets and liabilities and the financial assets at fair value through profit or loss. The other variables, especially
exchanges rates, are assumed to be fixed in this analysis.
Profit / Loss Shareholders’ Equity(*)
31 December 2012 100 bp increase 100 bp decrease 100 bp increase 100 bp decrease
Financial assets at fair value through profit loss (2,496) 2,600 (2,496) 2,600
Financial assets with floating interest rates 1,287 (1,299) 1,287 (1,299)
Total, net (1,209) 1,301 (1,209) 1,301
Profit / Loss Shareholders’ Equity(*)
31 December 2011 100 bp increase 100 bp decrease 100 bp increase 100 bp decrease
Financial assets at fair value through profit loss (1,383) 1,430 (1,383) 1,430
Financial assets with floating interest rates 1,250 (1,257) 1,250 (1,257)
Total, net (2,633) 2,687 (2,633) 2,687