2011 annual report 2011 annual report - Garanti Bankası

Türkiye Garanti Bankası AŞ and Its Financial AffiliatesConsolidated Financial Report as of and for the Year Ended 31 December 2011(Thousands of Turkish Lira (TL))5.7.2 Bank’s risk group5.7.2.1 Relations with companies in risk group of/or controlled by the Bank regardless of nature of current transactionsTransactions with the risk group, are held under arm’s-length conditions; terms are set according to the market conditions and in compliance with the Banking Law. The Bank’s policy is to keep the balances and transaction volumes with therisk group at reasonable levels preventing any high concentration risk on balance sheet.5.7.2.2 Concentration of transaction volumes and balances with risk group and pricing policyThe cash loans of the risk group amounting TL 284,984 thousands (31 December 2010: TL 291,114 thousands) compose 0.31% (31 December 2010: 0.41%) of the Bank’s total cash loans and 0.17% (31 December 2010: 0.21%) of theBank’s total assets. The total loans and similar receivables amounting TL 599,651 thousands (31 December 2010: TL 362,082 thousands) compose 0.37% (31 December 2010: 0.26%) of the Bank’s total assets. The non-cash loans of therisk group amounting TL 589,623 thousands (31 December 2010: TL 427,956 thousands) compose 2.65% (31 December 2010: 2.60%) of the Bank’s total non-cash loans. The deposits of the risk group amounting TL 1,457,596 thousands(31 December 2010: TL 657,890 thousands) compose 1.56% (31 December 2010: 0.83%) of the Bank’s total deposits. The funds borrowed by the Bank from its risk group amounting to TL 48,432 thousands compose 0.20% (31 December2010: -) of the Bank’s total funds borrowed. The pricing in transactions with the risk group companies is set on an arms-length basis.There is a credit card (POS) payable amounting TL 50,726 thousands (31 December 2010: TL 18,708 thousands) to related parties.Operating expenses of TL 12,265 thousands (31 December: TL 11,067 thousands) for IT services rendered by related parties and rent income of TL 497 thousands (31 December 2010: TL 328 thousands) for the real estates rented to relatedparties, are recorded.The Bank and its consolidated financial affiliates made a total payment of TL 131,217 thousands as of 31 December 2011 (31 December 2010: TL 110,744 thousands) to its top management considered as the key management.5.7.2.3 Other matters not required to be disclosedNone.5.7.2.4 Transactions accounted for under equity methodPlease refer to Note 5.1.8.5.7.2.5 All kind of agreements signed like asset purchases/sales, service rendering, agencies, leasing, research and development, licences, funding, guarantees, management servicesThe Bank has agency contracts with certain consolidated subsidiaries namely Garanti Yatırım Menkul Kıymetler AŞ and Garanti Emeklilik ve Hayat AŞ. Accordingly, all the branches of the Bank serve as agencies to sell the products of theseentities to customers. Agency services for trading of securities on behalf of customers are rendered by the Bank’s specialised branches (Investment Centers).Purchase of equipments for internal use are partly arranged through financial leasing.5.8 Domestic, foreign and off-shore branches or investments and foreign representative offices5.8.1 Domestic and foreign branches and representative officesTürkiye Garanti Bankası AŞNumber of Branches Number Of Employees CountryDomectic Branches 907 16,688Foreign Representative Offices 1 1 1- Germany1 1 2- Russia1 1 3- England1 1 4- ChinaTotal AssetsLegal CapitalForeign Branches 1 16 1- Luxembourg 13,287,494 968,6401 12 2- Malta 23,596,970 -5 57 3- NCTR 482,476 3,5205.8.2 Opening or closing of domestic and foreign branches and representative offices and significant changes in organisational structureIn 2011, 67 new domestic branches were opened and 13 branches were closed.5.8.3 Information on consolidated financial subsidiariesGaranti Bank International NVNumber of Branches Number Of Employees CountryForeign Representative Offices 1 14 1- Turkey1 - 2- Switzerland1 2 3- UkraineTotal AssetsLegal CapitalHead office-Holland 1 184 1- Holland 6,790,383 EUR 136,836,000Foreign Branches 1 22 2- Germany 3,286,319 -302 GARANTİ BANKASI 2011 ANNUAL REPORT