113 / 276
111
FINANCIAL INFORMATION
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
NOTES TO UNCONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2015
(AMOUNTS EXPRESSED IN THOUSANDS OF TURKISH LIRA (“TL”) UNLESS OTHERWISE STATED. )
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 percent of TL against currencies mentioned below as of 31 December 2015 and 31 December
2014 are presented in the below table. The other variables, especially the interest rates, are assumed to be fixed in this
analysis.
Assuming 10 percent appreciation of TL;
Current Period
Prior Period
Income
Statement
Shareholders’
Equity
(*)
Income
Statement
Shareholders’
Equity
(*)
Euro
1,776
1,776
(50)
(50)
US Dollar
(834)
(834)
(26)
(26)
Other Currencies
(2,229)
(2,229)
(47)
(47)
Total
(1,287)
(1,287)
(123)
(123)
(*)
The effect on shareholders’ equity also includes the effect on the profit/loss.
Assuming 10 percent depreciation of TL;
Current Period
Prior Period
Income
Statement
Shareholders’
Equity
(*)
Income
Statement
Shareholders’
Equity
(*)
Euro
(1,776)
(1,776)
50
50
US Dollar
834
834
26
26
Other Currencies
2,229
2,229
47
47
Total
1,287
1,287
123
123
(*)
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.