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218 A&T BANK ANNUAL REPORT 2015
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. )
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
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% 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% appreciation of TL;
Current Period
Prior Period
Income
Statement
Shareholders’
Equity
(*)
Income
Statement
Shareholders’
Equity
(*)
Euro
1,633
1,633
104
104
US Dollar
(891)
(891)
(54)
(54)
Other Currencies
(2,229)
(2,229)
(47)
(47)
Total
(1,487)
(1,487)
3
3
(*)
The effect on shareholders’ equity also includes the effect on the profit/loss.
Assuming 10% depreciation of TL;
Current Period
Prior Period
Income
Statement
Shareholders’
Equity
(*)
Income
Statement
Shareholders’
Equity
(*)
Euro
(1,633)
(1,633)
(104)
(104)
US Dollar
891
891
54
54
Other Currencies
2,229
2,229
47
47
Total
1,487
1,487
(3)
(3)
(*)
The effect on shareholders’ equity also includes the effect on the profit/loss.
VI. INFORMATION ON CONSOLIDATED 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 Parent 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 Parent 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.