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A&T BANK 2014 FAALİYET RAPORU
Convenience Translation of Publicly Announced Consolidated Fınancial
Statements Originally Issued in Turkish, See Note I of Section Three
Arap Türk Bankası A.Ş.
Notes to Consolidated Financial
Statements at 31 December 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
ANNU L R PORT 2014
The table below shows the distribution of corporate and commercial loans grades in respect of weight as of 31 December 2014:
Current Period
Prior Period
Grade
Description
Weight
AA
Maximum Reliability
1%
-
AA-
Maximum Reliability
3%
7%
A+
Very Good Firm
7%
11%
A
Very Good Firm
9%
11%
A-
Very Good Firm
11%
14%
BBB+
Reliable and Qualified
15%
16%
BBB
Reliable and Qualified
16%
17%
BBB-
Reliable and Qualified
18%
10%
BB+
Low Reliably and risky
11%
7%
BB
Low Reliably and risky
5%
5%
BB-
Low Reliably and risky
3%
1%
B+
Weak
1%
1%
(*)
The rating distribution above does not include retail loans and loans granted to banks.
Accounting applications, the definition of non-performing and impaired elements
Determining the Nature of Loans and Other Receivables and Allocation Regulation on Procedures and Principles Regarding
Provisions under Article 4, Third, Fourth and Fifth classified in groups of all receivables, accrued interest and similar charges interest
on the principal amount owed whether or not additional or refinance, regardless of whether or not the non-performing loans are
considered impaired.
Although there are probable repayment, interest due to various reasons justify the collection of principal or interest payments, more
than thirty days from the maturity date or dates to be paid late, but without the condition of the third group delay time required for
classification as non-performing receivables are defined.
Value adjustments and provisions methods and approaches
Classification of the elements described above, and taking into account the Bank’s loans and other receivables, from the date of the
third group of at least twenty percent (20%), from the date of the fourth group of at least fifty percent (50%), from the date of the fifth
Group One hundred percent (100%) by a special provision.
In addition to the specific provisions of qualified cash loans of the Bank’s standard one percent of the total (1%), and letters of credit,
guarantees and sureties and other non-cash loans the two thousandth of the total (0.2%) percent and two percent of the total cash
loans under close monitoring (2%), and letters of credit, guarantees and sureties and other four thousandths of the total non-cash
loans (0.4%) rate the overall provision.
The subsidiary of the Parent Bank that operates in financial leasing sector provide at least 20% provision for the leasing receivables if
both or one of the principal or interest are overdue by 90 days, provide at least 50% provision for overdue by 180 days, provide 100%
provision for overdue by a year.