ATB_FRAE_2015

88 A&T BANK ANNUAL REPORT 2015

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. )

CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE

Information on Shareholders’ Equity

Current Period Prior Period

COMMON EQUITY TIER 1 CAPITAL

608,852

539,742

Paid-in capital

(*)

437,869

438,340

Share premium

Share cancellation profit

Legal reserves

15,189

11,663

Income passed on to shareholders’ equity in accordance with Turkey Accounting Standards (TAS).

Profit

148,765

82,184

Net Income for current period

70,106

70,506

Prior period profit

78,659

11,678

Provisions for possible risks

9,000

Bonus shares of Associates, Subsidiaries and Joint-Ventures

Common Equity Tier 1 Capital Before Deductions

610,823

541,187

Deductions From Common Equity Tier 1Capital

1,971

1,445

Loss excess of reserves and loss passed on to shareholders’ equity in accordance with Turkey

Accounting Standards (TAS) (-)

Leasehold Improvements (-)

912

850

Goodwill and other intangible assets and related deferred tax liabilities. (-)

1,059

595

Net deferred tax income/expense (-)

Shares noncompliant with article 56/4 of the Law (-)

Direct or indirect investments on Bank’s own Common Tier 1 Capital (-)

Total net long position exceeding 10% of Bank’s Common Tier 1 capital, belonging to investments on

own funds of banks and financial institutions that are not consolidated, with a shareholding of 10%

and below

Total net long position exceeding 10% of Bank’s Common Tier 1 capital, belonging to investments on

own funds of banks and financial institutions that are not consolidated, with a shareholding of 10%

and above

Rights of providing mortgage service exceeding 10% of Common Tier 1 capital (-)

Deferred tax assets based on temporary differences exceeding 10% of Common Tier 1 capital (-)

Balances in accordance with the temporary article 2/2 of Regulation on Shareholders’ Equity of Banks

exceeding 15% of Common Tier 1 capital (-)

Excess amount arising from total net long position belonging to investments on Common Tier 1

Capital of banks and financial institutions that are not consolidated, with a shareholding above 10%

Excess amount arising from rights of providing mortgage service (-)

Excess amount arising from deferred tax assets based on temporary differences (-)

Other items determined by board (-)

Deduction amount from Common Tier 1 Capital in case of shortage of additional Tier 1 capital or

supplementary capital (-)

Total Deductions From Common Equity Tier 1Capital

1,971

1,445

Total Common Equity Tier 1Capital

608,852

539,742

ADDITIONAL TIER 1 CAPITAL

Premiums of privilege share capital not included in Common Equity Tier 1 capital

Debt instruments which is seen appropriate by corporation and premiums in accordance with these

instruments (Issued after 1.1.2015)

Debt instruments which is seen appropriate by corporation and premiums in accordance with these

instruments (Issued before 1.1.2015)

Additional Tier 1Capital Before Deductions

Deductions From Additional Tier 1 Capital

Direct or indirect investments which bank provides for its’ own additional Tier 1 capital (-)

10% exceed part of Common Tier 1capital of bank from the sum of partnership share on banks and

financial institutions that are not consolidated, with a shareholding less than 10% (-)

10% exceed part of Common Tier 1 capital of bank from the sum of partnership share on banks and

financial institutions that are not consolidated, with a shareholding of 10% and above (-)

Other items determined by board (-)

Deduction amount of additional core capital in case of there is not enough additional core capital or

supplementary capital (-)