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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 CONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2015
(AMOUNTS EXPRESSED IN THOUSANDS OF TURKISH LIRA (“TL”) UNLESS OTHERWISE STATED. )
The table below shows the distribution of corporate and commercial loans grades in respect of weight as of 31 December 2015:
Current Period
Prior Period
Grade
Description
Weight
AA
Maximum Reliability
1%
1%
AA-
Maximum Reliability
4%
3%
A+
Very Good Firm
16%
7%
A
Very Good Firm
14%
9%
A-
Very Good Firm
13%
11%
BBB+
Reliable and Qualified
14%
15%
BBB
Reliable and Qualified
13%
16%
BBB-
Reliable and Qualified
13%
18%
BB+
Low Reliably and risky
4%
11%
BB
Low Reliably and risky
4%
5%
BB-
Low Reliably and risky
3%
3%
B+
Weak
-
1%
D
Bankruptcy
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.