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Convenience Translation of Publicly Announced Unconsolidated Financial
Statements Originally Issued in Turkish, See Note I of Section Three
Arap Türk Bankası A.Ş.
Notes to Unconsolidated Financial
Statements at 31 December 2014
( Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated. )
General Information
Corporate Management
Financial Information
The new rating system announced in 2013. System is rating to all credit customers based on qualification and quantity estimating
to accomplish financial data entries and answering subjective questions. Scala of the grating is between “D” and “AAA+”. D is the
minimum grade, AAA+ is the maximum grade and there is 22 grades in scala.
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.