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253

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.)

General Information

Corporate Management

Financial Information

In accordance with existing Turkish Labour Law, the Bank is required to make lump-sum termination indemnities to each employee

who has completed one year of service with the Bank and whose employment is terminated due to retirement or for reasons other

than resignation or as mentioned in related regislation. The computation of the liability is based upon the retirement pay ceiling

announced. The applicable ceiling amount as at 31 December 2014 is TL 3,438 (full TL) (31 December 2013: TL 3,254 (full TL)).

Reserve for employee termination benefits are calculated via net present value of estimated provision of probable liabilities will be

arised in the future and reflected in the financial statements.

Movement of employee termination benefits are as follows:

Current Period

Prior Period

Balances at Beginning of period

4,666

5,228

Provision booked in current period

1,126

814

Provision paid in current period (-)

442

1,376

Balances at End of the Period

5,350

4,666

The employee termination benefit liability of the Group is the amount as at 31 December 2014 is TL 5,350

(31 December 2013: TL 4,666). In addition to this, the unused vacation provision and other employee benefits amount as at

31 December 2014 is TL 4,557 (31 December 2013: TL 4,069).

Information on other provisions

The provisions for probable risks

These financial statements include a free provision that is out of reporting standarts, amounting to TL 9,000 thousand which was

charged to the income statement in the current period, provided by the Bank management in line with the conservatism principle

considering the circumstances that may arise from any changes in the economy or market conditions.

In the case of the other provisions, exceeds the 10% of the total provisions, those accounts and balances

Current Period

Prior Period

Free provisions for possible risks

9,000

-

Provisions for non-cash loans

1,547

589

Provisions for law suits

67

43

8. Information on tax payables

Information on corporate tax liability

As of 31 December 2014, corporate tax payable after deducting the prepaid tax is TL 3,267 (31 December 2013: TL 3,773)