AND ITS FINANCIAL SUBSIDIARIES INDEPENDENT AUDITORS REPORT, CONSOLIDATED FINANCIAL STATEMENTS AND NOTES FOR THE YEAR ENDED DECEMBER 31, 2011 (Translated into English from the Original Turkish Report)
To the Board of Directors of Asya Katılım Bankası A.ġ. Ġstanbul ASYA KATILIM BANKASI A.Ş. AND ITS FINANCIAL SUBSIDIARIES INDEPENDENT AUDITORS REPORT FOR THE YEAR JANUARY 1, 2011 - DECEMBER 31, 2011 We have audited the accompanying balance sheet of Asya Katılım Bankası A.ġ. (the Bank ) and its financial subsidiaries ( the Group ) as at December 31, 2011 and the related consolidated statements of income, cash flows and changes in shareholders equity for the year then ended, and a summary of significant accounting policies and other explanatory notes. Management s Responsibility for the Financial Statements: The Board of Directors of the Bank is responsible for the preparation and fair presentation of the financial statements in accordance with the regulation on Procedures and Principles Regarding Banks Accounting Practices And Maintaining Documents published in the Official Gazette dated November 1, 2006 and numbered 26333 and Turkish Accounting Standards ( TAS ), Turkish Financial Reporting Standards ( TFRS ) and other regulations, circulars, communiqués and pronouncements in respect of accounting and financial reporting made by Banking Regulation and Supervision Agency ( BRSA ). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the regulation on Licensing and Operations of Audit Firms in Banking International Standards published in the Official Gazette No: 26333 on November 1, 2006 and the International Standards on Auditing. We planned and performed our audit to obtain reasonable assurance whether the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the consideration of the effectiveness of internal control and appropriateness of accounting policies applied relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independent Auditors Opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Asya Katılım Bankası A.ġ. as at December 31, 2011 and the results of its operations and its cash flows for the year then ended in accordance with the prevailing accounting principles and standards set out as per Article 37 of the Banking Act No: 5411 and other regulations, circulars and communiqués in respect of accounting and financial reporting and pronouncements made by Banking Regulation and Supervision Agency ( BRSA ). Additional paragraph for the English translation: The effect of the differences between the accounting principles summarized in Section 3 and the accounting principles generally accepted in countries in which the accompanying financial statements are to be distributed and International Financial Reporting Standards ( IFRS ) have not been quantified and reflected in the accompanying financial statements. The accounting principles used in the preparation of the accompanying financial statements differ materially from IFRS. Accordingly, the accompanying financial statements are not intended to present the Bank s financial position and results of its operations in accordance with accounting principles generally accepted in such countries of users of the financial statements and IFRS. Ġstanbul, April 5, 2012 DRT BAĞIMSIZ DENETĠM VE SERBEST MUHASEBECĠ MALĠ MÜġAVĠRLĠK A.ġ. Member of DELOITTE TOUCHE TOHMATSU LIMITED Hüseyin Gürer Partner
THE CONSOLIDATED FINANCIAL REPORT OF ASYA KATILIM BANKASI A.Ş. Address of the Headquarter of the Bank : Saray Mahallesi, Dr. Adnan Büyükdeniz Caddesi No:10 34768 Ümraniye/ĠSTANBUL Phone and Fax Numbers of the Bank : 0 216 633 50 00 / 0 216 633 69 89 Website of the Bank : www.bankasya.com.tr E-Mail : raporlama@bankasya.com.tr The consolidated financial report designed by the Banking Regulation and Supervision Agency in line with Communiqué on Financial Statements to be Publicly Announced and the Related Policies and Disclosures consists of the sections listed below: GENERAL INFORMATION ABOUT THE PARENT BANK CONSOLIDATED FINANCIAL STATEMENTS OF THE PARENT BANK EXPLANATIONS ON THE CORRESPONDING ACCOUNTING POLICIES APPLIED IN THE RELATED PERIOD INFORMATION ON CONSOLIDATED FINANCIAL STRUCTURE OF THE GROUP EXPLANATORY DISCLOSURES AND FOOTNOTES ON CONSOLIDATED FINANCIAL STATEMENTS OTHER EXPLANATIONS AND DISCLOSURES INDEPENDENT AUDITORS REPORT The subsidiaries and associates consolidated within the framework of the reporting package are as follows: Subsidiaries Associates (1) IĢık Sigorta A.ġ. Tamweel Africa Holding S.A. (2) Tuna Gayrimenkul Yatırım Ortaklığı A.ġ. - (3) Asya Emeklilik ve Hayat A.ġ. - (4) Asyafin Sigorta Aracılık Hizmetleri Ltd. ġti. - The consolidated financial statements and the explanatory footnotes and disclosures, unless otherwise indicated, are prepared in Thousands of the Turkish Lira, in accordance with the Communiqué on Banks Accounting Practice and Maintaining Documents, Turkish Accounting Standards, Turkish Financial Reporting Standards, related communiqués and the Banks records, have been independently audited and presented as attached. Behçet AKYAR Abdullah ÇELĠK Ahmet BEYAZ Kamil YILMAZ Chairman of the Board Manager in Charge of of Directors Financial Reporting Member of the Board of Directors and General Manager Assistant General Manager Responsible of Financial Reporting Dr. Ercüment GÜLER Member of the Board of Directors and Member of the Audit Committee Mehmet URUÇ Member of the Board of Directors and Member of the Audit Committee Responsible personnel for the questions that can be raised on the financial statements: Name-Surname/Title: Merve Yasemin GÜNEġ / Assistant Manager in Charge of Budgeting and Financial Controlling Telephone Number : 0 216 633 54 82 Fax Number : 0 216 633 69 89
SECTION ONE GENERAL INFORMATION I. History of the Bank Including Its Incorporation Date, Initial Status and Amendments to the Initial Status 1 II. Shareholder Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management and Internal Audit of the Bank, Changes in Shareholder Structure During the, if any and Information on the Bank s Risk Group 2 III. Explanations Regarding the Shares of the Bank Owned by and Areas of Responsibility of the Chairman and the Members of Board of Directors, Audit Committee Members, Chief Executive Officer, Executive Vice Presidents 3 IV. Individuals and Institutions That Have Qualified Shares in the Bank 4 V. Summary Information on the Bank s Services and Activity Areas 4 SECTION TWO THE CONSOLIDATED FINANCIAL STATEMENTS I. Consolidated Balance Sheet 5-6 II. Consolidated Statement of Off-Balance Sheet Contingencies and Commitments 7 III. Consolidated Statement of Income 8 IV. Consolidated Statement of Income and Expense Accounted under Equity 9 V. Consolidated Statement of Changes in Shareholders Equity 10 VI. Consolidated Statement of Cash Flows 11 VII. Consolidated Statement of Profit Distribution 12 SECTION THREE ACCOUNTING PRINCIPLES I. Explanations on Basis of Presentation 13 II. Explanations on Strategy for Use of Financial Instruments and Foreign Currency Transactions 13 III. Information about the Parent Bank and its Consolidated Subsidiaries 14 IV. Explanations on Forward and Option Contracts and Derivative Instruments 14 V. Explanations on Profit Share Income and Expenses 14 VI. Explanations on Fees and Commission Income and Expenses 14 VII. Explanations on Financial Assets 15 VIII. Explanations on Impairment of Financial Assets 17 IX. Explanations on Offsetting Financial Assets and Liabilities 17 X. Explanations on Sales and Repurchase Agreements and Lending of Securities 17 XI. Explanations on Assets Held for Sale, Discontinued Operations and Liabilities Related to Those Assets 17 XII. Explanations on Goodwill and Other Intangible Assets 18 XIII. Explanations on Tangible Assets 19 XIV. Explanations on Leasing Transactions 20 XV. Explanations on Provisions and Contingent Liabilities 20 XVI. Explanations on Liabilities for Employee Benefits 20 XVII. Explanations on Taxation 21 XVIII. Additional Disclosures on Borrowing 22 XIX. Explanations on Issuance of Share Certificates 22 XX. Explanations on Avalized Drafts and Acceptances 22 XXI. Explanations on Government Incentives 22 XXII. Explanations on Segment Reporting 22 XXIII. Explanations on Other Matters 23
SECTION FOUR INFORMATION ON THE CONSOLIDATED FINANCIAL STRUCTURE I. Explanations Related to the Consolidated Capital Adequacy Standard Ratio 24 II. Explanations Related to the Consolidated Credit Risk 27 III. Explanations Related to the Consolidated Market Risk 31 IV. Explanations Related to the Consolidated Operational Risk 31 V. Explanations Related to the Consolidated Currency Risk 32 VI. Explanations Related to the Consolidated Interest Rate Risk 35 VII. Explanations Related to the Consolidated Liquidity Risk 35 VIII. Explanations on Presentation of Financial Assets and Liabilities at Fair Value 38 IX. Explanations on Transactions Carried out on Behalf of Other Parties and Fiduciary Assets 39 SECTION FIVE I. Explanations and Disclosures Related to the Consolidated Assets 40 II. Explanations and Disclosures Related to the Consolidated Liabilities 65 III. Explanations and Disclosures Related to the Consolidated Off-Balance Sheet Contingencies and Commitments 74 IV. Explanations and Disclosures Related to the Consolidated Income Statement 79 V. Explanations and Disclosures Related to the Statements of Changes in Shareholders Equity 85 VI. Explanations and Disclosures Related to the Statements of Cash Flows 86 VII. Explanations on the Risk Group of the Parent Bank 87 VIII. Explanations on the Bank s Domestic, Foreign, Off-shore Branches or Investments in Associates and Foreign Representative Offices 88 SECTION SIX OTHER EXPLANATIONS I. Other Explanations on the Operations of the Parent Bank 88 SECTION SEVEN INDEPENDENT AUDITORS REPORT I. Explanations on the Independent Auditors Report 89 II. Other Footnotes and Explanations Prepared by the Independent Auditors 89
FOR THE PERIOD ENDED DECEMBER 31, 2011 SECTION ONE GENERAL INFORMATION I. History of the Parent Bank Including Its Incorporation Date, Initial Legal Status and Amendments to the Initial Legal Status Incorporation of the Parent Bank is permitted with the decision of the Council of Ministers No: 96/8041 on April 11, 1996 as published in the Official Gazette dated April 25, 1996. The Parent Bank was registered on September 20, 1996 and the Articles of Association was published in the Trade Registry Gazette on September 25, 1996. The decision regarding the change in the title of the Bank was settled in the Extraordinary General Board of Directors meeting dated December 22, 2005 and the title was changed from Asya Finans Kurumu A.ġ. into Asya Katılım Bankası A.ġ. and it was published in the Trade Registry Gazette on December 26, 2005. Information on Consolidated Subsidiaries: IĢık Sigorta A.ġ. IĢık Sigorta A.ġ. ( the Company ) was established in 1995 in Ġstanbul and operates in various insurance and reinsurance sectors excluding life insurance. The Company is registered in Turkey, and it s headquarter is located in Saray Mah. Dr. Adnan Büyükdeniz Cad. No: 10 34768 Ümraniye, Ġstanbul. The Company currently has 169 personnel as of December 31, 2011. IĢık Sigorta A.ġ. currently has 4 regional management offices, 2 regional representation offices and 1.172 (including the Bank branches) agencies. Tuna Gayrimenkul Yatırım Ortaklığı A.ġ. Based on the announcement of the Capital Market Board dated August 13, 2009, it has been permitted transformation of the subsidiary of the Parent Bank Asyafin Turizm ĠnĢaat San. A.ġ. into Tuna Gayrimenkul Yatırım Ortaklığı A.ġ. with the decision dated March 27, 2009 and numbered 7/194. The transformation and registration have been completed as of September 30, 2009 and the Articles of Association has been published in the Trade Registry Gazette on October 8, 2009. The company s main operations are development of residential and saleable real estate and generation of rental revenue from its own real estate portfolio. The company is registered in Turkey, and its headquarter is located in Saray Mah. Dr. Adnan Büyükdeniz Cad. No: 10 34768 Ümraniye, Ġstanbul. The company currently has 18 personnel as of December 31, 2011. Asyafin Sigorta Aracılık Hizmetleri Ltd. ġti. Asyafin Sigorta Aracılık Hizmetleri Ltd. ġti. was established in 1997 in Ġstanbul and shows a variety of insurance and reinsurance activities. As of reporting date, the Company has no operation. The Company is registered in Turkey, and it s headquarter is located in Saray Mah. Dr. Adnan Büyükdeniz Cad. No: 10 34768 Ümraniye, Ġstanbul. 1
FOR THE PERIOD ENDED DECEMBER 31, 2011 SECTION ONE GENERAL INFORMATION I. History of the Bank Including Its Incorporation Date, Initial Status and Amendments to the Initial Status Asya Emeklilik ve Hayat A.ġ. Asya Emeklilik ve Hayat A.ġ. was established in 2011 and plans to operate private pension, life and casualty insurance areas. As of reporting date, the Company has not started its operations yet. The Company is registered in Turkey, and its headquarter is located in Saray Mah. Dr. Adnan Büyükdeniz Cad. No: 10 34768 Ümraniye, Ġstanbul. The company currently has 24 personnel as of December 31, 2011. Information on Consolidated Associate: Tamweel Africa Holding S.A. Tamweel Africa Holding S.A. (the Holding ) was established in June 9, 2009. 60% of it belongs to ICD, 40% of it belongs to Asya Katılım Bankası A.ġ. The Holding is registered in Senegal, and its headquarter is located in 66 rue Carnot, 5ème Etage Résidence Diouma Léna, Dakar. The Holding currently has 10 personnel as of December 31, 2011 and 4 banks operating in Senegal, Guinea, Niger and Mauritania. II. Shareholder Structure, Shareholders Having Direct or Indirect, Joint or Individual Control Over the Management and Internal Audit of the Parent Bank, Changes in Shareholder Structure During the, if any and Information on the Bank s Risk Group The Parent Bank has no shareholders having more than 10% shareholding or direct or indirect, joint or individual control over the management of the Parent Bank. The Parent Bank is not included in any group. 2
FOR THE PERIOD ENDED DECEMBER 31, 2011 SECTION ONE GENERAL INFORMATION III. Explanations Regarding the Shares of the Parent Bank Owned by and Areas of Responsibility of the Chairman and the Members of Board of Directors, Audit Committee Members, Chief Executive Officer, Executive Vice Presidents Title Name Area of Responsibility Ownership Percentage % Chairman of the Board of Directors Behçet AKYAR Chairman of the Board of Directors 0,0003 Member of the Board of Directors Salih SARIGÜL (*) Vice Chairman of the Board of Directors 0,2056 Ahmet ÇELĠK (*) Member of the Board of Directors 0,4800 Tacettin NEGĠġ (**) (***) Member of the Board of Directors - Ġsmail Erol ĠġBĠLEN (***)(*******) Member of the Board of Directors and the Audit Committees - Hülagü ÖZCAN (***) (*******) Member of the Board of Directors and the Audit Committees - General Manager Abdullah ÇELĠK Member of the Board and General Manager - Assistant General Managers Corporate/Commercial Loans, Small Banking, Top Management Office Headquarters, Business and Product Development Coordination (****) - Ali TUĞLU Information Technologies - Ali Fuat TAġKESENLĠOĞLU (*****) Corporate Credit Allocation II, - Erdal ERDEM (*****) Credit and Risk Monitoring, Construction and Real Estate Fahrettin SOYLU Banking Operations - Dr. Ercüment GÜLER(*******) Retail Sales Management, Retail Product Management, Card Payment Systems Marketing Management, Administrative Affairs, Alternative Distribution Channels, Resource Development - Ahmet BEYAZ Budgeting & Reporting, Accounting & Bank Affiliates, Purchasing, Corporate Communications - Zafer ERTAN Law, Credit and Risk Monitoring - Ahmet AKAR Feyzullah EĞRĠBOYUN Corporate/Consumer Credit Allocation I, Project Financing - Treasury, Financial Institutions, Investor Relations, Human Resources and Education 0,0004 Auditors Ali AKBULUT(******) Auditor 0,0002 Atıf BĠLGĠN Auditor 0,2411 Ġrfan HACIOSMANOĞLU Auditor 0,7093 (*) Bank Asya's Board members Mr. Salih SARIGÜL and Mr. Ahmet ÇELĠK have announced their resignations as of January 26, 2012 and Mr. Ali ÇELĠK and Mr. Faruk ĠLK were appointed as the board members to fill their vacancies. (**) Bank Asya's Board member Mr. Tacettin NEGĠġ has announced his resignation as of February 2, 2012 and Mr. Mustafa Talat KATIRCIOĞLU was appointed as the board members to fill his vacancy. (***) Pay rate is not presented due to being below 0,001%. (****) Related departments operate under control of the Headquarter. (*****) Bank Asya's Executive Vice Presidents Mr. Ali Fuat TAġKESENLĠOĞLU and Mr. Erdal ERDEM have resigned as of January 6, 2012. (******)Bank Asya's Auditor Mr. Ali AKBULUT has announced his resignation. Mr. Mehmet GÖZÜTOK was appointed as the auditor. (*******) Bank Asya's Board members Mr. Ismail Erol ISBILEN and Mr. Hülagü ÖZCAN have announced their resignations, effective on March 12th 2012. Mr. Dr. Ercument GULER (Executive Vice President) and Mr. Mehmet URUÇ (Chief Legal Counsel) were appointed as the board members to fill their vacancies. 3
FOR THE PERIOD ENDED DECEMBER 31, 2011 SECTION ONE GENERAL INFORMATION IV. Individuals and Institutions That Have Qualified Shares in the Parent Bank The Parent Bank s capital, amounting to TRY 900.000.000, consists of qualified shares, amounting to TRY 360.000.000 and the holders of the A Group type shares are considered as qualified. The qualified shareholders are listed below. Name & Surname / Commercial Title Share Amount Share Amount Paid Shares Unpaid Shares ORTADOĞU TEKSTĠL TĠC. SAN. A.ġ. 39.572 10,99 39.572 - FORUM ĠNġAAT DEKORASYON TURĠZM SAN. VE TĠC. A.ġ. 34.668 9,63 34.668 - ABDULKADĠR KONUKOĞLU 20.088 5,58 20.088 - BJ TEKSTĠL TĠCARET VE SANAYĠ A.ġ. 18.000 5,00 18.000 - BĠRĠM BĠRLEġĠK ĠNġAATÇILIK MÜMESSĠLLĠK SAN. VE TĠC. A.ġ. 17.783 4,94 17.783 - SERRA TURĠZM LTD. ġtġ. 15.000 4,17 15.000 - OSMAN CAN PEHLĠVAN 14.400 4,00 14.400 - NEGĠġ GĠYĠM ĠMALAT VE ĠHRACAT A.ġ. 13.142 3,65 13.142 - HASAN SAYIN 12.723 3,53 12.723 - ĠBRAHĠM SAYIN 12.679 3,52 12.679 - OTHER 161.945 44,99 161.945 - Total 360.000 100,00 360.000 - V. Summary Information on the Bank s Services and Activity Areas The Parent Bank operates in accordance with the principles of interest-free banking as a participation bank, by collecting funds through current accounts and profit sharing accounts, and lending such funds through production support, finance lease and profit/loss sharing partnership. The Parent Bank has two ways of collecting funds; current accounts and profit sharing accounts. The Parent Bank classifies current accounts and profit sharing accounts in accordance with their maturities in its accounting system. Profit sharing accounts are categorized into five different maturity groups; up to one month, up to three months (three months included), up to six months (six months included), up to one year and one year (one year included) and more than one year (one month, three months, six months and one year profit share payment). The Parent Bank could determine the participation rates on profit/loss sharing accounts with respect to the maturity group of TRY and foreign currency accounts, seperately under the limitation that the participation rate on loss shall not be less than 50%, for different currency type, amount and maturity groups specifically. The Parent Bank constitutes specific fund pools, allocated to the individually predetermined projects for financing purposes. Profit sharing accounts, which are part of the funds collected for project financing purpose, are distinguished from others with respect to the terms, accounted seperately from the others and it is not allowed to make any transfers from these accounts to any other maturity groups. Specific fund pools are clarified at the end of the financing period. The Parent Bank has no specific fund pools as of December 31, 2011. In addition to the regular banking activities, the Parent Bank operates as an agency on behalf of IĢık Sigorta A.ġ. and intervenes stock purchase-sell transactions on behalf of Bizim Menkul Değerler A.ġ. through its branches. 4
SECTION TWO THE CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Audited Audited ASSETS Note (31/12/2011) (31/12/2010) TRY FC Total TRY FC Total I. CASH AND BALANCES WITH THE CENTRAL BANK (1) 527.427 1.152.225 1.679.652 1.357.177 727.792 2.084.969 II. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND (2) 7.611 1.250 8.861 4.897 2.581 7.478 2.1 Trading financial assets 7.611 1.250 8.861 4.897 2.581 7.478 2.1.1 Public sector debt securities - - - - - - 2.1.2 Share certificates 7.611-7.611 4.897-4.897 2.1.3 Derivative financial assets held for trading - 1.250 1.250-2.581 2.581 2.1.4 Other marketable securities - - - - - - 2.2 Financial assets at fair value through profit and loss - - - - - - 2.2.1 Public sector debt securities - - - - - - 2.2.2 Share certificates - - - - - - 2.2.3 Loans - - - - - - 2.2.4 Other marketable securities - - - - - - III. BANKS (3) 59.371 343.487 402.858 74.157 150.402 224.559 IV. MONEY MARKET PLACEMENTS - - - - - - V. FINANCIAL ASSETS AVAILABLE FOR SALE (Net) (4) 779.763-779.763 394.708-394.708 5.1 Share certificates 219-219 224-224 5.2 Public sector debt securities 779.544-779.544 394.484-394.484 5.3 Other marketable securities - - - - - - VI. LOANS AND RECEIVABLES (5) 11.588.089 1.565.682 13.153.771 9.967.521 987.275 10.954.796 6.1 Loans and receivables 11.278.387 1.565.242 12.843.629 9.824.377 986.884 10.811.261 6.1.1. Loans to risk group of the Bank 304.173 6.283 310.456 248.182 1.707 249.889 6.1.2. Public sector debt securities - - - - - - 6.1.3. Other 10.974.214 1.558.959 12.533.173 9.576.195 985.177 10.561.372 6.2 Non-performing loans 614.033 1.697 615.730 445.673 1.478 447.151 6.3 Specific provisions (-) (304.331) (1.257) (305.588) (302.529) (1.087) (303.616) VII. HELD TO MATURITY INVESTMENTS (Net) (6) 77.053-77.053 77.032-77.032 VIII. INVESTMENTS IN ASSOCIATES (Net) (7) 107.248-107.248 87.147-87.147 8.1 Accounted for under equity method 45.900-45.900 31.166-31.166 8.2 Unconsolidated 61.348-61.348 55.981-55.981 8.2.1 Financial associates 3.000-3.000 2.000-2.000 8.2.2 Non-financial associates 58.348-58.348 53.981-53.981 IX. INVESTMENTS IN SUBSIDIARIES (Net) (8) 84.014-84.014 83.964-83.964 9.1 Unconsolidated financial subsidiaries - - - - - - 9.2 Unconsolidated non-financial subsidiaries 84.014-84.014 83.964-83.964 X. ENTITIES UNDER COMMON CONTROL (Net) (9) - - - - - - 10.1 Consolidated under equity method - - - - - - 10.2 Unconsolidated - - - - - - 10.2.1 Financial subsidiaries - - - - - - 10.2.2 Non-financial subsidiaries - - - - - - XI. FINANCE LEASE RECEIVABLES (10) 277.570 20.181 297.751 81.966 23.505 105.471 11.1 Finance lease receivables 370.569 21.860 392.429 95.514 26.200 121.714 11.2 Operating lease receivables - - - - - - 11.3 Other - - - - - - 11.4 Unearned income ( - ) (92.999) (1.679) (94.678) (13.548) (2.695) (16.243) XII. DERIVATIVE FINANCIAL ASSETS FOR HEDGING PURPOSES (11) - - - - - - 12.1 Fair value hedge - - - - - - 12.2 Cash flow hedge - - - - - - 12.3 Hedge of net investment risks in foreign operations - - - - - - XIII. TANGIBLE ASSETS (Net) (12) 454.718-454.718 354.326-354.326 XIV. INTANGIBLE ASSETS (Net) (13) 16.238-16.238 14.549-14.549 14.1 Goodwill 4.111-4.111 4.111-4.111 14.2 Other 12.127-12.127 10.438-10.438 XV. INVESTMENT PROPERTY (Net) (14) 35.641-35.641 36.812-36.812 XVI. TAX ASSET (15) 21.955-21.955 10.754-10.754 16.1 Current tax asset - - - - - - 16.2 Deferred tax asset 21.955-21.955 10.754-10.754 XVII. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Ne (16) 8.724-8.724 6.509-6.509 17.1 Held for Sale 8.724-8.724 6.509-6.509 17.2 Discontinued Operations - - - - - - XVIII. OTHER ASSETS (17) 217.145 3.103 220.248 215.235 2.686 217.921 TOTAL ASSETS 14.262.567 3.085.928 17.348.495 12.766.754 1.894.241 14.660.995 The accompanying notes are integral part of these financial statements. 5
CONSOLIDATE BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Audited Audited LIABILITIES AND EQUITY Note (31/12/2011) (31/12/2010) TRY FC Total TRY FC Total I. FUND COLLECTED (1) 7.719.000 4.573.921 12.292.921 7.588.685 3.497.810 11.086.495 1.1 Fund from risk group of the Bank 83.251 54.061 137.312 57.701 75.658 133.359 1.2 Other 7.635.749 4.519.860 12.155.609 7.530.984 3.422.152 10.953.136 II. DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING (2) - 11.715 11.715-5.397 5.397 III. FUNDS BORROWED (3) 27.357 1.457.830 1.485.187 28.474 622.237 650.711 IV. MONEY MARKET BALANCES 279.207-279.207 - - - V. MARKETABLE SECURITIES ISSUED (NET) - - - - - - VI. SUNDRY CREDITORS 388.746 3.900 392.646 278.850 4.056 282.906 VII. OTHER LIABILITIES (4) 226.983 62.810 289.793 261.131 14.833 275.964 VIII. FINANCE LEASE PAYABLES (5) - - - - - - 8.1 Finance lease payables - - - - - - 8.2 Operating lease payables - - - - - - 8.3 Other - - - - - - 8.4 Deferred finance lease expenses (-) - - - - - - IX. DERIVATIVE FINANCIAL LIABILITIES FOR HEDGING PURPOSES (6) - - - - - - 9.1 Fair value hedge - - - - - - 9.2 Cash flow hedge - - - - - - 9.3 Hedge of net investment in foreign operations - - - - - - X. PROVISIONS (7) 267.047 28.103 295.150 251.820 18.787 270.607 10.1 General loan loss provisions 110.319 20.747 131.066 100.356 16.848 117.204 10.2 Restructuring provisions - - - - - - 10.3 Reserve for employee benefits 30.262-30.262 24.262-24.262 10.4 Insurance technical reserves (Net) 99.556 1.473 101.029 90.938 808 91.746 10.5 Other provisions 26.910 5.883 32.793 36.264 1.131 37.395 XI. TAX LIABILITY (8) 55.106 1 55.107 50.360 1 50.361 11.1 Current tax liability 55.098 1 55.099 50.360 1 50.361 11.2 Deferred tax liability 8-8 - - - XII. PAYABLES RELATED TO ASSETS HELD FOR SALE (Net) (9) 12.1 Held for sale - - - - - - 12.2 Discontinued operations - - - - - - XIII. SUBORDINATED LOANS (10) - - - - - - XIV. SHAREHOLDERS' EQUITY (11) 2.246.769-2.246.769 2.038.554-2.038.554 14.1 Paid-in capital 900.000-900.000 900.000-900.000 14.2 Capital reserves (6.017) - (6.017) 14.314-14.314 14.2.1 Share premium 3.307-3.307 3.307-3.307 14.2.2 Share cancellation profits - - - - - - 14.2.3 Marketable securities revaluation reserve (13.599) - (13.599) 6.732-6.732 14.2.4 Tangible assets revaluation reserve 4.275-4.275 4.275-4.275 14.2.5 Intangible assets revaluation reserve - - - - - - 14.2.6 Investment property revaluation reserve - - - - - - 14.2.7 Bonus shares obtained from associates, subsidiaries and jointly controlled entities - - - - - - 14.2.8 Hedging funds (Effective portion) - - - - - - 14.2.9 Value increase on assets held for resale - - - - - - 14.2.10 Other capital reserves - - - - - - 14.3 Profit reserves 1.028.676-1.028.676 762.457-762.457 14.3.1 Legal reserves 66.732-66.732 53.679-53.679 14.3.2 Status reserves - - - - - - 14.3.3 Extraordinary reserves 956.412-956.412 709.448-709.448 14.3.4 Other profit reserves 5.532-5.532 (670) - (670) 14.4 Profit or loss 214.334-214.334 252.534-252.534 14.4.1 Prior year income / (losses) (7.483) - (7.483) (9.561) - (9.561) 14.4.2 Current year income / (losses) 221.817-221.817 262.095-262.095 14.5 Minority shares (12) 109.776-109.776 109.249-109.249 TOTAL LIABILITIES AND EQUITY 11.210.215 6.138.280 17.348.495 10.497.874 4.163.121 14.660.995 The accompanying notes are an integral part of these financial statements. 6
STATEMENT OF OFF-BALANCE SHEET CONTINGENGIES AND COMMITMENTS THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Audited Audited (31/12/2011) (31/12/2010) Note TRY FC Total TRY FC Total A. OFF BALANCE SHEET COMMITMENTS AND CONTINGENCIES (I+II+III) 7.698.020 7.183.246 14.881.266 7.181.426 5.737.843 12.919.269 I. GUARANTEES (1), (2) 4.047.507 5.301.252 9.348.759 4.226.595 5.000.288 9.226.883 1.1. Letters of guarantees 3.996.113 3.560.462 7.556.575 4.195.799 3.742.856 7.938.655 1.1.1. Guarantees subject to State Tender Law - - - - - - 1.1.2. Guarantees given for foreign trade operations - - - - - - 1.1.3. Other letters of guarantee 3.996.113 3.560.462 7.556.575 4.195.799 3.742.856 7.938.655 1.2. Bank loans 27.386 296.584 323.970 23.000 131.318 154.318 1.2.1. Import letter of acceptances 27.386 296.584 323.970 23.000 131.318 154.318 1.2.2. Other bank acceptances - - - - - - 1.3. Letter of credits 2.898 1.331.621 1.334.519 642 996.720 997.362 1.3.1. Documentary letter of credits - - - - - - 1.3.2. Other letter of credits 2.898 1.331.621 1.334.519 642 996.720 997.362 1.4. Prefinancing given as guarantee - - - - - - 1.5. Endorsements - - - - - - 1.5.1. Endorsements to the Central Bank of Turkey - - - - - - 1.5.2. Other endorsements - - - - - - 1.6. Other guarantees 21.110 112.585 133.695 7.154 129.394 136.548 1.7. Other collaterals - - - - - - II. COMMITMENTS (1) 3.628.894 587.140 4.216.034 2.686.588 79.243 2.765.831 2.1. Irrevocable commitments 3.628.894 587.140 4.216.034 2.686.588 79.243 2.765.831 2.1.1. Forward asset purchase commitments 498.695 587.140 1.085.835 36.324 79.243 115.567 2.1.2. Share capital commitment to associates and subsidiaries 10.798-10.798 2.000-2.000 2.1.3. Loan granting commitments 353.633-353.633 341.648-341.648 2.1.4. Securities underwriting commitments - - - - - - 2.1.5. Commitments for reserve deposit requirements - - - - - - 2.1.6. Payment commitment for checks 650.723-650.723 580.319-580.319 2.1.7. Tax and fund liabilities from export commitments 1.883-1.883 1.880-1.880 2.1.8. Commitments for credit card expenditure limits 2.066.016-2.066.016 1.661.296-1.661.296 2.1.9. Commitments for promotions related with credit cards and banking activities 7.236-7.236 7.257-7.257 2.1.10. Receivables from short sale commitments - - - - - - 2.1.11. Payables for short sale commitments - - - - - - 2.1.12. Other irrevocable commitments 39.910-39.910 55.864-55.864 2.2. Revocable commitments - - - - - - 2.2.1. Revocable loan granting commitments - - - - - - 2.2.2. Other revocable commitments - - - - - - III. DERIVATIVE FINANCIAL INSTRUMENTS (4) 21.619 1.294.854 1.316.473 268.243 658.312 926.555 3.1. Derivative financial instruments for hedging purposes - - - - - - 3.1.1. Fair value hedge - - - - - - 3.1.2. Cash flow hedge - - - - - - 3.1.3. Hedge of net investment in foreign operations - - - - - - 3.2. Held for trading transactions 21.619 1.294.854 1.316.473 268.243 658.312 926.555 3.2.1. Forward foreign currency buy/sell transactions - - - - - - 3.2.1.1. Forward foreign currency transactions-buy - - - - - - 3.2.1.2. Forward foreign currency transactions-sell - - - - - - 3.2.2. Other Forward buy/sell transactions 21.619 1.294.854 1.316.473 268.243 658.312 926.555 3.3. Other - - - - - - B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) 144.252.279 103.667.485 247.919.764 114.534.965 74.648.884 189.183.849 IV. ITEMS HELD IN CUSTODY 996.242 821.158 1.817.400 737.083 373.825 1.110.908 4.1. Assets under management - - - - - - 4.2. Investment securities held in custody 2.885-2.885 2.885-2.885 4.3. Checks received for collection 736.005 316.160 1.052.165 537.081 193.630 730.711 4.4. Commercial notes received for collection 257.343 20.756 278.099 197.111 15.177 212.288 4.5. Other assets received for collection - 126.829 126.829-40.842 40.842 4.6. Assets received for public offering - - - - - - 4.7. Other items under custody 5-5 4-4 4.8. Custodians 4 357.413 357.417 2 124.176 124.178 V. PLEDGED ITEMS 143.256.037 102.846.327 246.102.364 113.797.882 74.275.059 188.072.941 5.1. Marketable securities 820.957 370.522 1.191.479 558.289 300.630 858.919 5.2. Guarantee notes 49.893.921 38.782.884 88.676.805 38.978.316 27.921.735 66.900.051 5.3. Commodity 2.643.502 759.906 3.403.408 2.124.763 553.137 2.677.900 5.4. Warranty - - - - - - 5.5. Properties 18.800.856 2.744.840 21.545.696 15.363.750 1.260.824 16.624.574 5.6. Other pledged items 71.096.801 60.188.175 131.284.976 56.772.764 44.238.733 101.011.497 5.7. Pledged items-depository - - - - - - VI. ACCEPTED INDEPENDENT GUARANTEES AND WARRANTIES - - - - - - TOTAL OFF BALANCE SHEET ACCOUNTS (A+B) 151.950.299 110.850.731 262.801.030 121.716.391 80.386.727 202.103.118 The accompanying notes are an integral part of these financial statements. 7
CONSOLIDATED STATEMENT OF INCOME THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD STATEMENT OF INCOME Note Audited Audited (01/01/2011-31/12/2011) (01/01/2010-31/12/2010) I. PROFIT SHARE INCOME (1) 1.280.858 1.209.222 1.1 Profit share on loans 1.201.460 1.126.940 1.2 Profit share on reserve deposits - 13.364 1.3 Profit share on banks 4.548 24.640 1.4 Profit share on money market placements - - 1.5 Profit share on marketable securities portfolio 58.116 30.884 1.5.1 Held-for-trading financial assets - - 1.5.2 Financial assets at fair value through profit and loss - - 1.5.3 Available-for-sale financial assets 49.234 21.050 1.5.4 Investment-held for maturity 8.882 9.834 1.6 Finance lease income 16.686 13.373 1.7 Other profit share income 48 21 II. PROFIT SHARE EXPENSE (2) (644.482) (608.057) 2.1 Expense on profit sharing accounts (586.782) (591.143) 2.2 Profit share expense on funds borrowed (43.161) (16.736) 2.3 Profit share expense on money market borrowings (14.340) - 2.4 Expense on securities issued - - 2.5 Other profit share expense (199) (178) III. NET PROFIT SHARE INCOME (I - II) 636.376 601.165 IV. NET FEES AND COMMISSIONS INCOME 241.076 234.907 4.1 Fees and commisions received 320.699 304.371 4.1.1 Non-cash loans 133.643 151.840 4.1.2 Other (12) 187.056 152.531 4.2 Fees and commisions paid (79.623) (69.464) 4.2.1 Non-cash loans (12) (10) 4.2.2 Other (12) (79.611) (69.454) V. DIVIDEND INCOME (3) 131 171 VI. NET TRADING INCOME (4) 39.457 48.127 6.1 Securities trading gains / (losses) (1.334) 3.281 6.2 Profit on derivative financial instruments gains / (losses) 64.210 30.508 6.3 Foreign exchange gains / (losses) (23.419) 14.338 VII. OTHER OPERATING INCOME (5) 230.837 221.097 VIII. NET OPERATING INCOME (III+IV+V+VI+VII) 1.147.877 1.105.467 IX. PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-) (6) (228.198) (167.553) X. OTHER OPERATING EXPENSES (-) (7) (646.653) (610.874) XI. NET OPERATING INCOME/(LOSS) (VIII-IX-X) 273.026 327.040 XII. AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER - - XIII. GAIN / (LOSS) ON EQUITY METHOD 3.632 1.211 XIV. GAIN / (LOSS) ON NET MONETARY POSITION - - XV. PROFIT/(LOSS) FROM CONTINUED OPERATIONS BEFORE TAXES (XI+ +XIV) (8) 276.658 328.251 XVI. TAX PROVISION FOR CONTINUED OPERATIONS (±) (9) (54.515) (65.126) 16.1 Provision for current income taxes (60.625) (70.887) 16.2 Provision for deferred taxes 6.110 5.761 XVII. NET PROFIT/(LOSS) FROM CONTINUED OPERATIONS (XV±XVI) (10) 222.143 263.125 XVIII. INCOME ON DISCONTINUED OPERATIONS - - 18.1 Income on assets held for sale - - 18.2 Income on sale of associates, subsidiaries and jointly controlled entities (Joint Vent.) - - 18.3 Income on other discontinued operations - - XIX. LOSS FROM DISCONTINUED OPERATIONS (-) - - 19.1 Loss from assets held for sale - - 19.2 Loss on sale of associates, subsidiaries and jointly controlled entities (Joint vent.) - - 19.3 Loss from other discontinued operations - - XX. PROFIT / (LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII-XIX) - - XXI. TAX PROVISION FOR DISCONTINUED OPERATIONS (±) - - 21.1 Provision for current income taxes - - 21.2 Provision for deferred taxes - - XXII. NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XX±XXI) - - XXIII. NET PROFIT/LOSS (XVII+XXII) (11) 222.143 263.125 23.1 Group s profit/loss 221.817 262.095 23.2 Minority shares 326 1.030 Earnings per share 0,25 0,29 The accompanying notes are an integral part of these financial statements. 8
STATEMENT OF PROFIT AND LOSS ITEMS ACCOUNTED UNDER EQUITY THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Audited Audited STATEMENT OF PROFIT AND LOSS ITEMS ACCOUNTED UNDER EQUITY (01/01/2011-31/12/2011) (01/01/2010-31/12/2010) I. Additions to marketable securities revaluation differences for available for sale financial assets (25.414) 4.764 II. Tangible assets revaluation differences - - III. Intangible assets revaluation differences - - IV. Foreign exchange differences for foreign currency transactions 6.202 (670) V. Profit/Loss from derivative financial instruments for cash flow hedge purposes (Effective portion of fair value differences) - - VI. Profit/Loss from derivative financial instruments for hedge of net investment in foreign operations (Effective portion of fair value - - differences) - - VII. The effect of corrections of errors and changes in accounting policies - - VIII. Other profit loss items accounted under equity due to TAS - - IX. Deferred tax of valuation differences 5.083 (953) X. Total Net Profit/Loss accounted under equity (I+II+ +IX) (14.129) 3.141 XI. Profit/Loss - - 11.1 Change in fair value of marketable securities (Transfer to Profit/Loss) - - 11.2 Reclassification and transfer of derivatives accounted for cash flow hedge purposes to Income Statement - - 11.3 Transfer of hedge of net investments in foreign operations to Income Statement - - 11.4 Other - - - - XII. Total Profit/Loss accounted for the period (X±XI) (14.129) 3.141 The accompanying notes are an integral part of these financial statements. 9
Note STATEMENT OF CHANGES OF SHAREHOLDER'S EQUITY ASYA KATILIM BANKASI A.Ş. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY THOUSAND TURKISH LIRA Effect of inflation Share Marketable Tangible and Acc. Val. Equity Accounting on Certificate Securities Intangible Assets Bonus Shares Diff. from Attributable Capital and Other Share Cancellation Legal Statutory Extraordinary Other Net Income / Net Income / Revaluation Revaulation Obtained from Hedging Assets Held to the Paid-in Capital Capital Reserves Premium Profits Reserves Reserves Reserve Reserve (Loss) (Loss) Reserve Differences Associates Funds for Sale and Parent Minority Shares Total Equity PRIOR PERIOD Audited (01/01-31/12/2010) I. Balance - 31.12.2009 900.000-3.307-38.378-453.231 - - 291.813 2.921 4.275 - - - 1.693.925 105.491 1.799.416 II. Corrections according to TAS 8 - - - - - - - - - - - - - - - - - - 2.1. The effect of corrections of errrors - - - - - - - - - - - - - - - - - - 2.2. The effects of changes in accounting policy - - - - - - - - - - - - - - - - - - III. New Balance (I+II) 900.000-3.307-38.378-453.231 - - 291.813 2.921 4.275 - - - 1.693.925 105.491 1.799.416 Changes in period - - - - - - - - - - - - - - - - - - IV. Increase/Decrease related to merger - - - - - - - - - - - - - - - - - - V. Marketable securities revaluation differences - - - - - - - - - - 3.811 - - - - 3.811-3.811 VI. Hedging Funds (Effective Portion) - - - - - - - - - - - - - - - - - - 6.1 Cash-flow hedge - - - - - - - - - - - - - - - - - - 6.2 Hedge of net investment in foreign operations - - - - - - - - - - - - - - - - - - VII. Tangible assets revaluation differences - - - - - - - - - - - - - - - - - - VIII. Intangible assets revaluation differences - - - - - - - - - - - - - - - - - - IX. Bonus shares obtained from associates, subsidiaries and jointly controlled - - - - - - - - - - - - - - - - - - entities (Joint vent.) X. Foreign exchange differences - - - - - - - (670) - - - - - - - (670) - (670) XI. The disposal of assets - - - - - - - - - - - - - - - - - - XII. The reclassification of assets - - - - - - - - - - - - - - - - - - XIII. The effect of change in associate s equity - - - - - - - - - - - - - - - - - - XIV. Capital increase - - - - - - - - - - - - - - - - 2.715 2.715 14.1 Cash - - - - - - - - - - - - - - - - 2.715 2.715 14.2 Internal sources - - - - - - - - - - - - - - - - - - XV. Share premium - - - - - - - - - - - - - - - - - - XVI. Share cancellation profits - - - - - - - - - - - - - - - - - - XVII. Inflation adjustment to paid-in capital - - - - - - - - - - - - - - - - - - XVIII. Other - - - - 5 - - - - 139 - - - - - 144 13 157 XIX Period net income/(loss) - - - - - - - - 262.095 - - - - - - 262.095 1.030 263.125 XX. Profit distribution - - - - 15.296-256.217 - - (301.513) - - - - - (30.000) - (30.000) 20.1 Dividends distributed - - - - - - - - - (30.000) - - - - - (30.000) - (30.000) 20.2 Transfers to reserves - - - - 15.296-256.217 - - (271.513) - - - - - - - - 20.3 Other - - - - - - - - - - - - - - - - - - Closing Balance (III+-...+XVI+XVII+XVIII) 900.000-3.307-53.679-709.448 (670) 262.095 (9.561) 6.732 4.275 - - - 1.929.305 109.249 2.038.554 CURRENT PERIOD Audited (01/01-31/12/2011) I. Balance - 31.12.2010 900.000-3.307-53.679-709.448 (670) - 252.534 6.732 4.275 - - - 1.929.305 109.249 2.038.554 Changes in period - - - - - - - - - - - - - - - - - - II. Increase/Decrease related to merger - - - - - - - - - - - - - - - - - - III. Marketable securities revaluation differences - - - - - - - - - - (20.331) - - - - (20.331) - (20.331) IV. Hedging Funds (Effective Portion) - - - - - - - - - - - - - - - - - - 4.1 Cash-flow hedge - - - - - - - - - - - - - - - - - - 4.2 Hedge of net investment in foreign operations - - - - - - - - - - - - - - - - - - V. Tangible assets revaluation differences - - - - - - - - - - - - - - - - - - VI. Intangible assets revaluation differences - - - - - - - - - - - - - - - - - - VII. Bonus shares obtained from associates, subsidiaries and jointly controlled - - - - - - - - - - - - - - - - - - entities (Joint vent.) VIII. Foreign exchange differences - - - - - - - 6.202 - - - - - - - 6.202-6.202 IX. The disposal of assets - - - - - - - - - - - - - - - - - - X. The reclassification of assets - - - - - - - - - - - - - - - - - - XI. The effect of change in associate s equity - - - - - - - - - - - - - - - - 201 201 XII. Capital increase - - - - - - - - - - - - - - - - - - 12.1 Cash - - - - - - - - - - - - - - - - - - 12.2 Internal sources - - - - - - - - - - - - - - - - - - XIII. Share premium - - - - - - - - - - - - - - - - - - XIV. Share cancellation profits - - - - - - - - - - - - - - - - - - XV. Inflation adjustment to paid-in capital - - - - - - - - - - - - - - - - - - XVI. Other - - - - - - - - - - - - - - - - - - XVII. Period net income/(loss) - - - - - - - - 221.817 - - - - - - 221.817 326 222.143 XVIII. Profit distribution - - - - 13.053-246.964 - - (260.017) - - - - - - - - 18.1 Dividends distributed - - - - - - - - - - - - - - - - - - 18.2 Transfers to reserves - - - - 13.053-246.964 - - (260.017) - - - - - - - - 18.3 Other - - - - - - - - - - - - - - - - - - Closing Balance (I+II+III+-...+XVI+XVII+XVIII) 900.000-3.307-66.732-956.412 5.532 221.817 (7.483) (13.599) 4.275 - - - 2.136.993 109.776 2.246.769 The accompanying notes are an integral part of these financial statements. 10
A. CASH FLOWS FROM BANKING OPERATIONS THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Audited Audited Note (01/01/2011-31/12/2011) (01/01/2010-31/12/2010) 1.1 Operating profit before changes in operating assets and liabilities 86.774 361.641 1.1.1 Profit share income received 1.196.837 1.129.355 1.1.2 Profit share expense paid (635.818) (607.311) 1.1.3 Dividend received 131 171 1.1.4 Fees and commissions received 332.344 304.371 1.1.5 Other income 190.470 193.093 1.1.6 Collections from previously written off loans 14.509 20.636 1.1.7 Payments to personnel and service suppliers (278.459) (253.214) 1.1.8 Taxes paid (84.318) (90.912) 1.1.9 Others (648.922) (334.548) 1.2 Changes in operating assets and liabilities 395.935 46.203 1.2.1 Net (increase) decrease in financial assets (3.588) 13.358 1.2.2 Net (increase) decrease in financial assets at fair value through profit or loss - - 1.2.3 Net (increase) decrease in due from banks and other financial institutions 536.720 377.821 1.2.4 Net (increase) decrease in loans (2.191.597) (2.857.397) 1.2.5 Net (increase) decrease in other assets 13.094 (7.124) 1.2.6 Net increase (decrease) in bank deposits 101.005 10.926 1.2.7 Net increase (decrease) in other deposits 879.369 1.899.303 1.2.8 Net increase (decrease) in funds borrowed 670.927 445.578 1.2.9 Net increase (decrease) in due payables - - 1.2.10 Net increase (decrease) in other liabilities 390.005 163.738 I. Net cash provided from banking operations 482.709 407.844 B. CASH FLOWS FROM INVESTING ACTIVITIES II. Net cash provided from investing activities (367.544) (336.591) 2.1 Cash paid for purchase of entities under common control, associates and subsidiaries (I.7-I.8) (10.317) (68.555) 2.2 Cash obtained from sale of entities under common control, associates and subsidiaries (I.7-I.8) - - 2.3 Fixed assets purchases (I.12) (32.924) (48.591) 2.4 Fixed assets sales (I.12) 81.094 84.031 2.5 Cash paid for purchase of financial assets available for sale (400.000) (350.000) 2.6 Cash obtained from sale of financial assets available for sale - 50.000 2.7 Cash paid for purchase of investment securities - (50.000) 2.8 Cash obtained from sale of investment securities - 50.000 2.9 Other (I.13) (5.397) (3.476) C. CASH FLOWS FROM FINANCING ACTIVITIES ASYA KATILIM BANKASI A.Ş. CONSOLIDATED STATEMENT OF CASH FLOWS III. Net cash provided from financing activities - (27.285) 3.1 Cash obtained from funds borrowed and securities issued - 2.715 3.2 Cash used for repayment of funds borrowed and securities issued - - 3.3 Capital increase - - 3.4 Dividends paid - (30.000) 3.5 Payments for finance leases - - 3.6 Other - - IV. Effect of change in foreign exchange rate on cash and cash equivalents 77.979 8.412 V. Net increase in cash and cash equivalents 193.144 52.380 VI. Cash and cash equivalents at the beginning of the year (1) 442.557 390.177 VII. Cash and cash equivalents at the end of the year (1) 635.701 442.557 The accompanying notes are an integral part of these financial statements 11
CONSOLIDATED PROFIT DISTRIBUTION TABLE THOUSAND TURKISH LIRA CURRENT PERIOD PRIOR PERIOD Audited Audited (01/01-31/12/2011) (01/01-31/12/2010) I. DISTRIBUTION OF CURRENT PERIOD PROFIT - - - - 1.1 CURRENT PERIOD PROFIT - - 1.2 TAXES AND DUES PAYABLE (-) - - 1.2.1 Corporate Tax (Income Tax) - - 1.2.2 Withholding Tax 1.2.3 Other taxes and dues - - A. NET PERIOD PROFIT (1.1-1.2) - - - - 1.3 PRIOR YEAR'S LOSSES (-) - - 1.4 FIRST LEGAL RESERVES (-) 1.5 OTHER STATUTORY RESERVES (-) - - B. DISTRIBUTABLE NET PERIOD PROFIT [(A-(1.3+1.4+1.5)] - - 1.6 FIRST DIVIDEND TO SHAREHOLDERS (-) - - 1.6.1 To Owners of Ordinary Shares - - 1.6.2 To Owners of Preferred Stocks - - 1.6.3 To Owners of Preferred Stocks (Preemptive Rights) - - 1.6.4 To Profit Sharing Bonds - - 1.6.5 To Owners of the profit /loss Sharing Certificates - - 1.7 DIVIDEND TO PERSONNEL (-) - - 1.8 DIVIDEND TO BOARD OF DIRECTORS (-) - - 1.9 SECOND DIVIDEND TO SHAREHOLDERS (-) - - 1.9.1 To Owners of Ordinary Shares - - 1.9.2 To Owners of Preferred Stocks - - 1.9.3 To Owners of Preferred Stocks (Preemptive Rights) - - 1.9.4 To Profit Sharing Bonds - - 1.9.5 To Owners of the profit /loss Sharing Certificates - - 1.10 SECOND LEGAL RESERVE (-) - - 1.11 STATUS RESERVES (-) - - 1.12 EXTRAORDINARY RESERVES - - 1.13 OTHER RESERVES 1.14 SPECIAL FUNDS II. DISTRIBUTION FROM RESERVES - - - - 2.1 DISTRIBUTED RESERVES - - 2.2 SECOND LEGAL RESERVES (-) - - 2.3 SHARE TO SHAREHOLDERS (-) - - 2.3.1 To Owners of Ordinary Shares - - 2.3.2 To Owners of Preferred Stocks - - 2.3.3 To Owners of Preferred Stocks (Preemptive Rights) - - 2.3.4 To Profit Sharing Bonds - - 2.3.5 To Owners of the profit /loss Sharing Certificates - - 2.4 SHARE TO PERSONNEL (-) 2.5 SHARE TO BOARD OF DIRECTORS (-) III. EARNINGS PER SHARE - - - - 3.1 TO OWNERS OF STOCKS - - 3.2 TO OWNERS OF STOCKS ( % ) - - 3.3 TO OWNERS OF PREFERRED STOCKS 3.4 TO OWNERS OF PREFERRED STOCKS ( % ) - - IV. DIVIDEND PER SHARE - - - - 4.1 TO OWNERS OF STOCKS - - 4.2 TO OWNERS OF STOCKS ( % ) - - 4.3 TO OWNERS OF PREFERRED STOCKS - - 4.4 TO OWNERS OF PREFERRED STOCKS ( % ) - - (*) Based on the prevailing regulations in Turkey, profit distribution is not made on the consolidated income. The accompanying notes are an integral part of these financial statements. 12
SECTION THREE ACCOUNTING PRINCIPLES I. Explanations on Basis of Presentation 1. Presentation of Financial Statements The Parent Bank prepares its financial statements and notes in accordance with the Communiqué on Banks Accounting Practice and Maintaining Documents published in the Official Gazette No: 26333 dated November 1, 2006, Turkish Accounting Standards ( TAS ), Turkish Financial Reporting Standards ( TFRS ), other communiqués, pronouncements and explanations about accounting and financial reporting issued by the Banking Regulation and Supervision Agency ( BRSA ), Turkish Commercial Code and the Tax Legislation. The Parent Bank prepares financial statements by applying accounting policies and basis of accounting in accordance with the Turkish Accounting Standards ( TAS ) and related communiqués, pronouncements and explanations issued by the Banking Regulation and Supervision Agency ( BRSA ). The related accounting policies and basis of accounting are explained below. The prior year financial statements are presented in line with the principles of TAS No:1 Fundamentals of Preparing and Presenting Financial Statements published in the Official Gazette on January 16, 2005 with No:25702, and in accordance with Turkish Accounting Standards and Turkish Financial Reporting Standards; and other principles, methods and explanations about accounting and financial reporting issued by the BRSA. Certain reclassifications have been made to the prior year financial statements to comply with the current year presentation. The accompanying financial statements are prepared in accordance with historical cost basis except for financial assets at fair value through profit or loss and financial assets available for sale that are presented on fair value basis. 2. Basis of Accounting II. The accompanying consolidated financial statements are based on the Group s legal records. The Group has recorded the adjustments and reclassifications of inflation accounting to its legal books beginning from June 30, 2004 to December 31, 2004 in accordance with Act No: 5024 of the Tax Procedural Code. As of December 31, 2003 the consolidated financial statements are prepared in accordance with the legal books and historical cost principle except for the revaluation of fixed assets and includes adjustments and reclassifications, including restatement for the changes in the general purchasing power of the Turkish Lira in accordance with International Accounting Standard No: 29 Financial Reporting in Hyperinflationary Economies ( TAS 29 ) before December 31, 2004 for the purpose of fair presentation. Explanations on Strategy for Use of Financial Instruments and Foreign Currency Transactions The Group manages its financial instrument strategies depending on the financing sources. The sources mainly constitute of the current and profit sharing accounts. As of the balance sheet date, the Group s assets and equity structure are sufficient to cover its liabilities. The Group uses 21% of the funds collected in liquid instruments (December 31, 2010: 23%). The Group does not carry a significant foreign currency position risk due to the existing floating exchange rate regime. The investment decisions are made by taking into consideration of the maturity structure of the balance sheet items. The allocation of asset items are designated, and yield analysis are made based on this designation. In the statutory books of the Group, the transactions recorded in foreign currencies (all other currencies except Turkish Lira) are translated into the Turkish Lira at the exchange rates prevailing at the transaction dates. Monetary asset and liabilities denominated in foreign currencies are translated into the Turkish Lira at the year end exchange rates. Foreign exchange gains or losses arising from the translation of monetary items and foreign currency denominated collections or disbursements are recognized in the income statement. 13