Deutsche Bank A.Ş.
Annual Report 2022
Annual Report
2022
Deutsche Bank A.Ş.
Annual Report 2022
Message from the Chairman and the CEO
Dear Shareholders,
We look back on a year that was marked by geopolitical escalations, high inflation, supply chain
disruptions, energy price and growth concerns, along with increasing global uncertainties.
In 2022, domestic growth was strong in H1 but started to slow in Q3 on the back of the slowdown in
loan growth and weakening external demand. Thanks to record high tourism revenues and fiscal
support later in the year, 2022 growth should be slightly above 5% - ahead of most peers, yet also
noticeably lower than the 11.4% recorded in 2021. The first half of the year was once again marked by
high FX volatility, with the lira reaching new all-time lows. Reasons were mostly the unconventional
monetary policy approach and subdued portfolio flows. As from Q3, the lira was mostly stable, driven
by FX-interventions, macro-prudential measures, strong tourism revenues and bilateral inflows.
In what was a challenging year for Turkish markets, Deutsche Bank A.Ş. operated profitably once more
and recorded a materially improved net income of TRY 848million. With its robust capital levels, our
bank remains well positioned for further growth in our financing as well as risk and capital market
intermediation activities for public and private sector corporate and institutional clients.
Throughout 2022, we also continued to remain committed to our social responsibilities. In order to
strengthen the fabric of our society and to help enhance the environment in which we operate, our staff
participated in various activities organized or initiated by our Corporate Social Responsibility
volunteers.
Going into 2023, Türkiye - like many other countries - is facing important external and domestic
challenges. Global financial tightening continues, as central banks fight persistent underlying price
pressures. Global growth is expected to slow noticeably, with potentially mild recessions in Europe and
the USA, impacting Turkish exports. In addition, the war in Ukraine goes into its second year, and
weighs on global risk sentiment. On the domestic front, we expect demand to remain relatively robust
at the start of the year, due to the minimum wage increase and accommodative fiscal & monetary
policies. However, still elevated (yet falling) inflation pressures as well as weaker external demand
should limit upside surprises to domestic demand. In addition, a less competitive currency (in real
terms), will further weigh on exports. This said, the reopening of China in combination with lower gas
prices, surprisingly resilient domestic demand, and the reduced risk of a hard landing in Europe would
seem conducive for Turkish production and exports. We expect that fiscal and credit stimulus measures
to likely support domestic demand this year.
Deutsche Bank A.Ş.
Annual Report 2022
On the negative side, the tragic earthquakes early February, have – beyond the immediate human
tragedy – complicated the situation for the government. The impacted region accounts for some 10%
of GDP – with a strong focus on industrial production and the textile industry, leading to negative
implications on the overall output for Türkiye. The impact of the earthquakes is still difficult to put into
numbers, but it is reasonable to expect the direct impact at well above USD 50bn. This said, given
Türkiye’s strong fiscal position, we expect a relatively quick rebuilding process. All in all, we expect a
direct negative impact of minus 0.3%-0.5% on the economy, with further risks in case of a decline in
tourism later this year. Overall, we currently see annual GDP growth falling to 2.7% in 2023.
Headline inflation reached a 24-year record level and averaged 72% last year. Despite a decline in price
pressure in December and January, underlying inflationist tendencies have remained strong due to the
minimum wage hike in January (55%), the retirement reform and pronounced services inflation (at all-
time highs). For the rest of the year, we expect headline inflation to fall, but most likely much more
gradually than initially expected. We forecast levels below 50% by mid-year and 40% by year-end. Main
drivers in H1 are base effects, slowing food inflation and a stable currency. Our forecasts for H2 remain
still uncertain considering the potential impact of any potential currency volatility and potential
measures announced post the 2023 national elections.
After cutting its policy rate by 500bps to 9% last year, the easing cycle was supposed to be over.
However, on the back of the devastating earthquakes the CBT delivered another 50bps cut at its
February meeting to support the economy. The interest rate outlook remains uncertain. Though the
CBT has indicated that the current rate level is adequate, the path depends on various domestic
developments including the extent of economic slowdown ahead of the elections and its impact
resulting on inflation, and the timing of the election itself. We would not rule out further rate cuts ahead
of the election. In addition, we expect the CBT to continue to implement targeted macro-prudential
measures and actively use FX-interventions to keep the lira stable.
Though inflation is on a decelerating path from recent peaks, we would argue that inflation remains
structural in Türkiye, and reaching levels sustainably below 30% remains difficult to achieve for the
time being. Following supply chain disruptions due to the earthquakes, inflation risks are in fact now
higher than before. Although the CBT has made it clear that there will be no reversal of the current
monetary policy framework any time soon, we would not rule out monetary policy tightening in H2-23,
i.e. post elections, as the current monetary policy mix looks unsustainable in the medium term.
A critical topic for Turkish local markets in 2023 will be whether the CBT will keep interest rates at
current low levels and whether it will let the currency adjust after becoming very expensive in real terms.
Questions should also arise around the FX-protected lira deposit scheme and whether the tool will be
extended into 2024. Although the FX-protected lira deposit scheme has significantly reduced concerns
Deutsche Bank A.Ş.
Annual Report 2022
around financial stability, we continue to see risks for lira depreciation in light of extremely loose
monetary and fiscal policies coupled with structural inflationary pressures.
Notwithstanding the overall economic and geopolitical backdrop, our bank and our staff will continue
to focus on sustainable growth, innovation and the ongoing development of our service and product
offering to clients. As employer, corporate citizen and member of the Deutsche Bank Group, we shall
maintain highest standards in terms of governance, risk management, compliance and business ethics,
and continue to deliver value to our stakeholders
Istanbul, 3 March, 2023
With our best regards,
Frank Helmut Krings Orhan Özalp
Chairman of the Board of Directors CEO, Board Member
Deutsche Bank A.Ş.
Annual Report 2022
1. Introduction
History of Deutsche Bank A.Ş.
Established as Türk Merchant Bank A.Ş. in 1987.
Renamed as Bankers Trust A.Ş. in 1997.
Continued operations as Deutsche Bank A.Ş. as of 2000 following Deutsche Bank’s acquisition of
Bankers Trust.
Having provided corporate ban services under an investment banking license until 2004, Deutsche
Bank A.Ş. applied to the Banking Regulation and Supervision Agency (BRSA) for permission to
accept deposits in an attempt to expand its product range.
Obtained permission to accept deposits in October 2004.
Added corporate cash management and custody and settlement services to its product portfolio in
2005.
The Bank acquired Securities Services portfolio of T. Garanti Bankası A.Ş. in 2007
Received factoring and forfeiting licenses in February 2012, in accordance with the decision taken
by the Banking Regulation and Supervision Agency.
Upon the application made to the Capital Markets Board in accordance with the newly introduced
capital markets legislation, the Bank was granted license to provide dealing on own account, limited
custody and general custody services on 5.11.2015.
The Bank has no branches other than Head Office.
The Trade Registry Number of the Bank is 244378.
The Central Registration System Number (MERSIS) of the Bank is: 0-8760-0487-2200015
Bank’s web address: www.db.com.tr
Bank’s E-mail address: tr.muhaberat@db.com
Bank’s Head Office address: Ferko Signature Esentepe Mahallesi, Büyükdere Cd. No: 175/ 149
34394 Şişli/İstanbul
Tel: +90 212 317 0100
Fax: +90 212 317 0105
Electronic Notification Address (National Electronic Notification System) is 25999-32177-21566
Bank’s Registered Electronic Mail (KEP) is db.iletisi[email protected]
Deutsche Bank A.Ş.
Annual Report 2022
Financial Highlights
December 31, 2022
Summary Financial Highlights
(TRY 000)
2022
Cash and Cash Equivalents
3,054,805
Financial Assets at Fair Value Through Profit and Loss
2,427,140
Loans (Net)
3,914,826
Total Assets
11,406,223
Deposits
2,188,686
Funds Borrowed
5,897,204
Shareholders’ Equity
1,819,516
Interest Income
1,093,216
Net Trading Income/Loss
652,842
Net Operating Profit
1,131,040
Financial Ratios
(TRY 000)
2022
Capital Adequacy Ratio
29.11
Shareholders’ Equity/Assets
15.95
Off-Balance Sheet Items
(TRY 000)
2022
Guarantees and Warranties
825,281
Commitments
3,914,080
Derivative Financial Instruments
43,493,521
Items Held in Custody
9,815,222
Deutsche Bank A.Ş.
Annual Report 2022
Amendments to the Articles of Association
No amendments were made to the Articles of Association of Deutsche Bank A.Ş. during 2022.
Extraordinary General Assembly Meeting in 2022
No Extraordinary General Assembly Meetings were held during 2022. Ordinary General Assembly
Meeting of Deutsche Bank A.Ş. was held on March 31, 2022
Shareholder Structure, Changes during the Year,
Qualified Shares and Management Shares
All shareholders of Deutsche Bank A.Ş. are Deutsche Bank Group companies. The Bank holds no
privileged shares.
The most recent shareholder structure is presented in the table below.
Chairman and Members of the Board of Directors, Members of the Audit Committee and CEO do
not own any shares in the Bank.
The Bank did not acquire its own shares.
Shareholder Number of Shares Share Capital (TL) Share (%)
Deutsche Bank AG 1,349,999,730 134,999,973 99.99
Süddeutsche Vermögensverwaltung GmbH 68 6.8 <1
DB Industrial Holdings GmbH 68 6.8 <1
Deutsche Holdings (Luxembourg) S. á r. l. 67 6.7 <1
DB Capital Markets (Deutschland) GmbH 67 6.7 <1
Total 1,350,000,000 135,000,000 100
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Annual Report 2022
Equity Investments
The Bank does not have any equity investments, either directly or indirectly.
Deutsche Bank A.Ş. within the Banking Industry
Operating in Türkiye since 1987, leveraging the strong global banking network of its parent company
Deutsche Bank AG, Deutsche Bank A.Ş. is primarily focused on investment banking and corporate
banking. Offering its investment and corporate banking services with a workforce of 122 employees,
Deutsche Bank A.Ş. is the Istanbul based subsidiary of Deutsche Bank Group, which has
approximately 84,930 employees and EUR 1,337 billion in total assets (as of 31st December 2022)
throughout the world. Deutsche Bank A.Ş. does not have any branches in Türkiye other than Head
Office. Deutsche Bank A.Ş. targets the highest levels of quality in all product and service segments
in which it is active, and strives to be one of the prime relationship bank of each client.
In 2022, the Bank continued to take an active part in the bonds and foreign currency vs. Turkish lira
transactions. Having started to provide custody services as of 2005, Deutsche Bank A.Ş. has become
an extremely reputable bank, preferred by foreign investors for its custody services. The bank has a
30% market share among all the custodian banks that keep custody of securities portfolios of foreign
institutional investors in accordance with Central Bank’s and Central Securities Depository of
Türkiye, MKK’s records.
The bank mediates cash management circulation in domestic and international trade and provides
services and consultancy to clients in Türkiye in the fields of short and medium term trade financing
and risk management via its specialist teams. Besides conventional foreign trade products, the bank
has become a reliable partner in its clients’ banking transactions by providing customized solutions in
terms of trade financing products and corporate cash management.
The bank continues to work actively in preparation of major foreign company acquisition financing
packages of Turkish groups.
Deutsche Bank A.Ş. aims to provide services in line with the priorities and requirements of its local and
multinational customer segment, so as to develop strategic and longstanding relations with its
prominent customers. In doing so, it takes advantage of Deutsche Bank’s global know-how and
maximizes the coordination within different product groups, thus providing the most effective solutions
through exclusively designed financing techniques and banking services for its clients.
Bank’s target for 2023 will be to reinforce its reputation as a reliable and permanent business partner
by establishing longstanding relations with its clients.
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Annual Report 2022
Research and Development
After many years of providing corporate banking services in Türkiye under an investment banking
license, Deutsche Bank A.Ş. began offering commercial banking services in October 2004 after
having been granted a deposit taking license. Deutsche Bank A.Ş. continuously seeks to enhance the
quality and diversity of the services it provides. The Bank has been developing systems and products
to ensure the highest level of quality and diversity of its products in line with its expanding businesses.
Having started as an extension of its main business line in 2006, Custody Services were structured
to ensure compliance with the new capital markets legislation. The Bank was granted the license to
provide Dealing on Own Account, Limited Custody and General Custody services on 5.11.2015.
Combining its local experience with its main shareholder Deutsche Bank AG’s global network,
expertise and know-how in the areas of public offerings, block sales and derivative products,
Deutsche Bank A.Ş. continues to provide capital markets and treasury solutions. In 2022, the Bank
focused on capital markets instruments (in lieu of risk controlling) service management and capacity
expansion, and gained successful results. In 2022, the Bank completed its system development and
new processes to execute forward FX transactions at Borsa Istanbul Futures and Options Market and
became an active member of the market
The Bank, in line with its strategies, will continue delivering against digitalization stock exchange
products and capacity optimization in 2023.
Operations in 2022
Deutsche Bank A.Ş. Management believes that Türkiye, which has long stood out among emerging
economies, offers tremendous potential for growth and investment in the years ahead.
Corresponding to this perspective, the Bank is continuing its expansion into Türkiye with a primary
focus on investment banking and corporate banking.
The organization of Deutsche Bank A.Ş. is composed of Investment Bank, Corporate Bank Support
Functions and Internal Systems.
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Annual Report 2022
Investment Bank
Fixed Income Securities and Currencies
Fixed Income Securities and Currencies unit conducts the structuring and sales transactions of debt and
money market instruments. It executes trading of debt securities such as government bonds and treasury
bills, as well as foreign exchange spot and derivatives. Moreover, it assists in pricing of spot and derivative
currency transactions of financial institutions, insurance companies and corporations. It provides support
to related divisions regarding foreign exchange and interest rate risk management solutions offered to
the clients in line with their risk management policies.
Structured Treasury and Lending Solutions
Structured Treasury and Financing Solutions offers clients, Deutsche Bank’s market-leading expertise in
Capital Markets and Emerging Markets.
The Unit provides financial solutions in coordination with global and local Treasury, Capital
Markets and Corporate Banking teams of Deutsche Bank.
The Unit offers Turkish companies, operating both in Türkiye and abroad, access to Deutsche
Bank’s global platform.
The Unit provides local knowledge and access of Deutsche Bank in Türkiye to global clients thus
contributes to development of Turkish capital markets.
The Unit also develops solutions based on market opportunities and needs in all financial
products including currency, fixed income securities, long-term funding and structured products.
Corporate Bank
The Corporate Bank consists of five units providing services to corporate and financial institutions; which
are Securities Services, Trade Finance, Cash Management and Trade Finance Financial Institutions,
Corporate Cash Management and Corporate Coverage.
Securities Services: With its Securities Services Unit, established by a highly competent and experienced
team in 2005, Deutsche Bank A.Ş. has become an extremely reputable bank, preferred by foreign
investors for its custody services. As of 2022
The Bank maintained its 30% market share among all
custodian banks that keep custody of securities portfolios of foreign institutional investors in 2022.
In 2022, Deutsche Bank A.Ş. continued to provide qualified and specialist services to its current
customers. Having received the general license for custody in accordance with the Capital Markets Law
in 2015, the Bank has maintained its successful custody and intermediary services by providing the best
solutions for its non-resident clients even during the most volatile times of the markets.
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Annual Report 2022
Deutsche Bank A.Ş. Securities Services confirmed their ‘TOP RATED’ status, first granted in 2009, by
receiving positive remarks from their clients and repeatedly scoring high points in the annual customer
poll conducted by the Global Custodian magazine in 2022, as in previous years. In this way, it has asserted
its first class quality of client services.
In 2023, Deutsche Bank A.Ş. plans to increase its market share and develop its position in the market for
clearing and custody activities through new products to be included in its already wide product range.
Trade Finance: Trade Finance unit intermediates domestic and international trade. The team, expert in
trade services and finance, has been serving its clients for short and medium term trade financing and risk
management. Deutsche Bank A.Ş. offers value added solutions based on 153 years of experience in 46
countries of Deutsche Bank AG, its main shareholder, to its clients. In addition to traditional trade services
and products, the Bank has become a reliable partner in providing tailor made solutions to meet its clients’
trade finance needs.
In Corporate Banking, enhancing the efficiency of resources, managing liquidity and risks, and, for this
purpose, setting the necessary targets and attaining them gain more and more importance with each
passing day. As Deutsche Bank A.Ş., the Bank contribute to efficient management of our clients’ working
capital and the Bank pay its best efforts to meet their demands with innovative solutions.
Although the competition is becoming fiercer, particularly in corporate banking as a result of rising interest
to Türkiye, Deutsche Bank A.Ş. Trade Finance Business Unit develops suitable products which meet the
needs of changing conditions and business models for more productive activities, as a result of which, the
Bank has gradually strengthened its market share.
Financial Institutions Cash Management and Trade Finance: As one of the leading global banks in the field
of Cash Management, Deutsche Bank continues to provide services as one of the solution partners and
main correspondents for Turkish banks. Enjoying this position to provide cash management solutions to
banks, the unit performs US Dollar money transfers through Deutsche Bank Trust Company Americas,
New York; Euro transfers through Deutsche Bank AG, Frankfurt Branch and Sterling transfers through
Deutsche Bank AG, London Branch. Services provided by the unit include Dollar and Euro based
commercial and treasury money transfers, liquidity management and sales and support services for
related products. While supporting clients with local, regional and global cash management solutions, the
unit aims to provide the most efficient and the best services through its extensive global branch network.
Having been providing its clients with foreign trade services in 46 countries and 67 locations Deutsche
Bank AG offers solutions for foreign trade products and trade financing through its experience,
knowledge and wide variety of products in order to maximize the level of its clients’ efficiency in foreign
trade transactions.
Through difficult times in financial markets and the global economy, the Bank has maintained
uninterrupted and consistent support for Financial Institutions. Thus, it aims to always be the most reliable
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Annual Report 2022
and preferred business partner of Turkish banks by continuing to share its Cash Management and Foreign
Trade products with clients, as well as by providing innovative solutions and global experience.
Corporate Cash Management: Corporates operating globally have to cope with economic complexity,
shifting regulatory landscapes, as well as unfamiliar markets and currencies. To thrive, the treasury of
tomorrow needs to have greater transparency over cash flows and payments, digital capabilities and the
ability to marry flexibility with control.
Our cash management corporate experts provide a wide range of world-class solutions that can help
clients improve liquidity and cash flow and optimize their treasury and payment businesses.
We also offer a complete range of services to handle the complexities of global, regional and domestic
cash management, including global payments, collections, liquidity management, and information and
reporting services.
Global Corporate Coverage: The builds strategic and longstanding relationships with corporate clients
that are incorporated in Türkiye but operate with a global outreach to provide services in line with their
requirements and priorities. In doing so, Global Corporate Coverage takes advantage of Deutsche Bank’s
global know-how and maximizes the coordination within different product groups, thus providing the
most effective solutions through exclusively designed financing techniques and banking services for its
clients. Global Corporate Coverage works in coordination with its partners in Financial Solutions Group,
Risk Management and Financial Institutions Cash Management and Trade Finance.
Local Corporate Coverage: Thanks to the synergy created by Deutsche Bank AG’s network and global
footprint, our unit serves global companies operating in Türkiye with the highest international banking
experience, provides consultancy for Cash Management, Treasury Management and Trade Financing
and offers solutions. Our goal here is to contribute to our clients’ working capital management. With the
local expertise and experience of Deutsche Bank AG and our global branch network, we bring unique
solutions to our corporate clients. Our goal is to maintain being a reliable partner in the banking processes
of our customers by providing custom solutions as well as traditional products.
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Annual Report 2022
Support Functions and Internal Systems
Finance, Treasury, Legal and Data Protection, Human Resources, Credit Allocation, Technology,
Operations and Chief Information Security Office are included under Support Functions; whereas,
Compliance and Anti-Financial Crimes, Internal Control, Internal Audit and Risk Management are
included under Internal Systems.
Support Functions
Finance: The Finance Unit examines the Bank’s financial position through its daily and monthly reports
and informs the management on the results. In order to adequately assess the performance of profit
centres, the unit prepares the financial statements for these units on a daily and monthly basis. The unit
is in charge of providing the information flow for the Bank’s audit by the independent auditor and
regulatory bodies. The Finance Unit generates new projects for Executive Management reporting and
internal control systems and supports other related projects, prepares the Bank’s financial statements
and related disclosures in the required format and submits them to regulatory and supervisory bodies
such as the Banking Regulation and Supervision Agency, Central Bank of Türkiye, Undersecretaries of
Treasury, Capital Markets Board and The Banks Association of Türkiye.
Treasury: Treasury unit is mainly responsible for managing asset and liability, capital, liquidity and
publishing transfer pricing of the Bank in accordance with strategy and risk appetite of bank while
complying with internal and regulatory requirements.
Treasury’s key responsibilities are to make sure that there is enough liquidity in the bank at any given point
in time, that there is capital available when needed and that funds can be raised as and when necessary,
all at a reasonable cost whilst balancing the needs of business growth and regulatory demands. Treasury’s
role extends to business steering through the effective transfer pricing of these liquidity and capital
resources to the businesses. Treasury’s fiduciary mandate, which encompasses the Bank’s funding pools,
asset and liability management (ALM) and fiduciary buffer management, supports businesses in
delivering on their strategic targets.
Legal and Data Protection: The Unit provides legal consultancy services to the business and support
service divisions of Deutsche Bank A.Ş. sets the legal framework regarding protection of personal data in
order to ensure that personal data protection activities are executed in accordance with the applicable
laws and performs Corporate Secretariat functions. It reviews the compliance of contracts to which the
Bank is a party, as well as transactions and texts prepared by other divisions of the Bank with the
applicable laws, and expresses its opinions with respect to legal implications to the divisions. The Unit is
responsible for examining the Bank’s new projects and recently developed products from a legal point of
view, and where necessary, for offering legally compliance alternatives. The Unit also serves as the
secretariat to General Assembly, Board of Directors, Audit Committee, Credit Committee, Assets and
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Annual Report 2022
Liabilities Committee, Executive Council, Operating Council, Information Security Committee,
Information Systems Strategy and Steering Committee, Information Systems Continuity Committee and
Data Sharing Committee meetings. The Unit represents the Bank in lawsuits to which the Bank is a party
or appoints 3rd party law firms for this purpose.
In 2023, the Unit aims to continue providing legal consultancy services related to the finance sector and
issues concerning the Bank, to provide legal support for potential projects, and to conduct the necessary
studies in order for the Bank to be in compliance with the amended legislation.
Human Resources: Human Resources Unit acts in accordance with the principle that its employees are
Bank’s most valuable assets, draws its strength from the employees, and provides equal opportunities
with innovative human resources applications supporting and improving the employees. In addition to a
fair wage structure, which aims to increase loyalty of the employees towards the Bank and to meet their
needs under challenging conditions of competition, HR also provides conditions that will enable the
employees to establish their work-life balance. In order to keep the organizational structure dynamic, the
unit provides an efficient communication and motivation environment where the employees are able to
use their creativity and to express their opinions, and adopts a transparent management policy that
accommodates and embraces different opinions and knowledge. Human Resources Unit supports
professional and personal development of the employees, reinforces their connection with the Bank and
therefore plays a strategic role in attaining the Bank’s targets with ease. The unit manages the relevant
structures and processes in accordance with the policies and procedures stipulated in the Laws and
regulations. Possible impacts of legislation amendments to current practices are discussed at the
Executive Council and the Operating Council. Furthermore, issues that concern the Bank as a whole,
personnel policies and social organizations, etc. are, discussed in Executive Council where necessary and
put into effect by Chief Executive Officer, Chief Operating Officer and Human Resources. Promotion
proposals up to the level of Managing Director, based on Executive Council’s review are approved by the
Board of Directors, and announced to all employees.
Credit Allocation: Credit Allocation Unit is responsible for reviewing loan applications received from
business units for the existing or new credit clients, assessment of their financial statements, accurate
and proper reflection of the financial analyses to the credit packages and, subsequent to finalization of
these processes, presentation of the credit packages to the appropriate credit authority (CEO, Credit
Committee or Board of Directors) in co-operation with the business units. The Unit will, if deemed
necessary, be further responsible from paying visits to clients, conducting reviews to see whether there
are any excesses in the credit limits assigned, evaluation of possible NPLs with Legal and Data Protection
and Risk Management units and, if applicable, presentation of these credits to the appropriate authorities.
Operations Unit: Carrying out all banking transactions in accordance with the regulatory requirements
Bank company standards and accepted high quality control and work flow practices followed by the
banking sector. In order to achieve this goal in the best conditions; creates and implements simple, easy-
to-understand and transparent workflows. Follows technology, legislation, relevant standard
changes and market practices and works one-to-one with the relevant teams in line with the needs.
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Annual Report 2022
In addition to its daily operational activities, Operations also carries out activities in projects aimed at
compliance with legislation, risk management and offering different products to customers.
Investment Banking Operations Unit; is responsible for the efficient, accurate, profitable and risk-free
clearing and settlement of bank transactions for corporate and government clients. Investment Banking
Operations support Global market and Treasury units by aiming to run processes smoothly, create
improvement and increase efficiency
Information Technology Unit: Employing the applicable legislation and standards established by both the
main partner and the Bank, knowledge, risk approach and innovation culture; the Unit establishes,
develops and operates technological structure of the Bank.
The Unit is responsible of governance and execution of the procedural structure in harmony with the
required standards to ensure the integrity and continuity of Information Systems, which are vital for the
operations of the Bank, to establish efficient controls on the same and to manage investments and
projects that are in compliance with both business targets and applicable regulations.
In order to provide continuity of the technological structure, both data centres and subsequent user areas
have been structured to operate with real time synchronization.
Chief Information Security Office: the Unit responsible for the Bank’s security matters. CSO
implements technology and physical security protection measures in accordance with the DB AG
Group’s Security Strategy and Risk Appetite. CISO develops and drives the global implementation
and operationalization of our group-wide information security strategy and ensures that the Bank’s
people and assets are appropriately protected.
To protect the Bank’s information and systems, a multi-layered approach is taken to build information
security controls, including data, devices, and applications. End-to-end protection is delivered while
providing concrete security to detect, prevent, respond, and recover from cyber threats. This
approach is a key tool of the Bank’s technology infrastructure and Deutsche Bank Group Information
Security Strategy to increase security and stability of the technology platforms.
In addition to prevention methods and controls like threat intelligence, data leakage prevention,
vulnerability management, business continuity management and continuous staff awareness
programs, prioritizing detection, backed up by a robust response process is an important facet of
Deutsche Bank Group Information Security Strategy. Global Cyber Intelligence and Response
Centres are set up to provide 24/7 coverage across different time zones (“follow the sun” model),
thus improving the Bank’s capability to detect threats and respond to information security incidents.
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Annual Report 2022
Internal Systems
Compliance and Anti-Financial Crimes (AFC) Unit: Compliance and AFC is responsible for advising
the business on and overseeing adherence of the business to applicable laws and regulations mainly
the Banking Law No: 5411 Capital Markets Low No: 6362 Law No: 5549 on Prevention of Laundering
Proceeds of Crime, Law No. 6415 on the Prevention of the Financing of Terrorism and Law no. 7262
on Prevention of Financing of Proliferation of Mass Destruction Weapons rules, regulations, and
ethical standards and also assessing the appropriateness and effectiveness of the control
environment. Compliance Unit acts as a coordinator within the Bank to avoid gaps in the Bank’s
internal control landscape to counteract risks that may result from failure to comply with material
rules and regulations.
The unit provides recommendations about maintaining the necessary compliance and cooperation in
relations with the supervisory and regulatory institutions determined by laws and regulations. The
unit also undertakes the responsibility to assess and advise on the Compliance related risks to the
Board of Directors, Executive Management and business units, in compliance with the related
legislation.
AFC is responsible for ensuring compliance with obligations on prevention of laundering proceeds of
crime proliferation of mass destruction weapons and terrorism financing, as set out in Law No 5549,
Law No 6415 and Law No 7262, setting strategies, internal controls and measures, functioning rules
and responsibilities to reduce risk by evaluation of clients, processes and services on a risk-based
approach, and increasing employee awareness on these topics. Responsibilities include conducting
the required monitoring and research as well as preparing necessary reports regarding Bank’s
businesses and transactions of Bank’s clients.
Internal Control: Responsible for execution of internal control activities, in order to provide
reasonable assurance on effectiveness, adequacy and compliance of internal control systems,
especially the financial and operational systems established within Deutsche Bank A.Ş. The Unit
performs the activities in accordance with the policy approved by the Board of Directors. The Bank
established the control points based on segregation of duties principle. Through this structure, it is
assured that the second level control activities within internal control system are performed
independently and objectively from functional units with the principle of the segregation of duties.
The internal control activities are designed according to risk types and levels that emerge based on
the characteristics and content of the Bank’s activities.
Internal Audit: The Internal Audit Unit monitors the internal control structure at all Deutsche Bank
A.Ş. units regularly and independently on behalf of the Board of Directors. Internal Audit evaluates
the units’ transactions and practices on the basis of targets, their compliance with internal/external
regulations and their performance within the framework of risk analysis, and focuses on assisting the
Board of Directors regarding the effectiveness of the corporate management.
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Annual Report 2022
Internal Audit checks that the Bank’s ethical standards have been fully implemented by the business
units. In addition to monitoring the compliance with internal and external regulations, Internal Audit
also conducts dynamic and effective monitoring of the working environment at all business and
support units through a risk-based approach.
Risk Management: The Risk Management Unit is responsible for Bank-wide implementation of the
standards “regarding the risk-return structure of the Bank’s cash flows and monitoring, controlling
and, when necessary, modifying the nature and level of the operations” that were devised and put
into effect by the Board of Directors within the framework of the BRSA regulations. On the other
hand, coordinating and assessment of the ICAAP Process, reporting and presenting its results are
among the significant responsibilities of the Risk Management Unit.
The Risk Management Unit is responsible from understanding risks and conducting sufficient
evaluations before entering a transaction, setting risk management policies and practice methods
based on risk management strategies, ensuring the application and adaptation of risk management
policies and practice methods. Maintaining quantified risks within limits and reporting the risk
measurements and risk monitoring results to the Board of Directors or to the Audit Committee and
senior management, on a regular and timely basis are also included among the responsibilities of the
Unit.
Deutsche Bank A.Ş.
Annual Report 2022
2. Management and Corporate Governance
Board of Directors
Frank Helmut Krings
Chairman of the Board of Directors (Since 2019), Member of the Audit Committee,
Chairman of the Compensation Committee
Frank Krings serves as Non-Executive Director on the statutory boards of various European financial
institutions and organizations within and outside the European Union. In the Grand Duchy of
Luxembourg, he is a Member of the Supervisory Board, the Risk Committee, and the Nomination
Committee of Deutsche Bank Luxembourg S.A.; he is also an elected member of the plenary
assembly of the Luxembourg Chamber of Commerce and a Member of its Audit Committee. In the
Swiss Confederation, he is a Member of the Board of Directors, the Audit Committee, and the Credit
Committee of Deutsche Bank (Schweiz) AG, Geneva. In France, he is a Member of the Board of
Directors of the Franco-German Chamber of Commerce and Industry, Paris.
Claire Coustar
Member of the Board of Directors, Deputy Chairperson
Claire Coustar is Managing Director, Global Head of ESG for FIC and Head of CEEMEA Client
Coverage. Claire joined Deutsche Bank in 2003, and during her tenor she has held various positions
across structuring, sales, and trading; including Head of Emerging Market Structuring Prior to
Deutsche Bank Claire held various positions in London office of a foreign bank, including Commodity
Derivative, European Securitization and Latin America Structured Products groups. Coustar was
appointed as a member of the Board of Directors of Deutsche Bank A.Ş. in February 2018. Claire
holds a Bachelor of Science degree from Babson College with major in Finance, Economics and
International Business and a Non-Executive Director Diploma from the Financial Times. Claire sits on
the Fixed Income & Currencies Executive Committee of Deutsche Bank AG. Claire represents
Deutsche Bank on GFANZ and the Net Zero Banking Alliance and is a member of the Group
Sustainability Steering Committee. Claire sits on the Fixed Income & Currencies Executive
Committee of Deutsche Bank and is Vice-chair of the Board of Directors of Deutsche Bank Türkiye.
Deutsche Bank A.Ş.
Annual Report 2022
Jorge Andrés Otero Letelier
Member of the Board of Directors, Deputy Chairperson
Born in 1969, Jorge Andrés Otero Letelier holds a Bachelor’s Degree in Finance from the University
of Santiago, Chile and a Master in Business Administration from New York University. Mr. Otero has
more than 20 years of experience in banking, including 15 years where he held managerial positions
with Deutsche Bank in New York, London and Singapore covering Emerging Markets.
He is currently
based in London as the Head of Credit for Emerging Markets, International Institutional and
Corporate Credits and the Illiquid Financing businesses. Mr. Otero previously served in the
Supervisory Board of OOO Deutsche Bank in Moscow and the Management Board of Deutsche Bank
Mexico S.A.
Orhan Özalp
Member of the Board of Directors, Chief Country Officer, Chief Executive Officer,
Chairman of the Credit Committee
Orhan is the Chief Country Officer of Türkiye, CEO of Deutsche Bank A.S and also heads the Central
Eastern Europe, Balkans, Türkiye and Israel coverage teams at Deutsche Bank. He joined Deutsche
Bank in 2006 and held various positions in Financial Institutions Coverage, Structured Product
Origination and Sales, FICC and Equity Derivatives Sales. Orhan later became a Managing Director
in Institutional Coverage and appointed as CEO of Deutsche Bank A.Ş. in January 2019. He holds BA
degrees in Economics and Business Management from Koc University.
Mark Michael Bailham
Member of the Board of Directors, Member of the Audit Committee, Member of the Compensation
Committee
Born in 1963, Mark Michael Bailham holds a Bachelor’s Degree in BSc Economics from University
College London. Mr. Bailham is the Head of EMEA AFC and Compliance, Global Head of Central
Compliance and Global Head of AFC and Compliance Risk Assessments, Deutsche Bank, London.
He has more than 30 years of experience in Compliance and AFC matters, including country, regional
as well as global issues, all products both retail, commercial and investment banking for global retail
and commercial banks, investment banks and asset management companies. Mr. Bailham joined
Deutsche Bank AG in 2014 and has been involved in. He has been working as a Member of Board of
Directors at Deutsche Bank A.Ş. since August 2020. Mr. Bailham is also a member of the Supervisory
Board of OOO Deutsche Bank in Moscow
Deutsche Bank A.Ş.
Annual Report 2022
Michael Christoph Maria Dietz *
Member of the Board of Directors
Michael Dietz is Deutsche Bank’s Global Head of Trade Finance Flow business Over the time of his
career at Deutsche Bank Michael covered various senior positions in Corporate Coverage functions
across Germany, Switzerland as well as the United States of America. Prior to joining the current role,
Michael has developed the EMEA Coverage for Commodity Traders as well as Swiss Corporates for
Deutsche Bank in Zurich. Michael has a degree in Mechanical Engineering and Economics at
Darmstadt University, Germany. He is a certified Dodd- Frank Securities Trader. He was appointed
as a member of the Board of Directors of Deutsche Bank A.Ş. in February 2019.
*
Resigned from his duties at the Bank on 15.08.2022 and replaced by Kornelis Jan Hoving as Board
Member.
Kornelis Jan Hoving
Member of the Board of Directors, Member of the Audit Committee
Appointed in July 2020, Kees Hoving is the Co-Chief Executive Officer (CEO) for Deutsche Bank in
the Middle East and Africa (MEA), Head of Corporate Bank MEA and Head of Corporate Coverage
MEA based in Dubai, United Arab Emirates. Hoving joined Deutsche Bank in 2010 as Head of
Corporate Transaction Banking in Germany based in Frankfurt. In 2013, he moved to the Netherlands
as Head of the Corporate Bank business and acted as CEO of Deutsche Bank Nederland NV.
Subsequently in 2014, Hoving was appointed Head of Global Transaction Banking responsible for
Europe, Middle East and Africa (ex. Germany) based in Frankfurt. In 2016, he returned to the
Netherlands as the Chief Country Officer (CCO). Before joining Deutsche Bank, Hoving had 14 years
of international banking experience working for RBS, Bank of America, JPMorgan and ING in London,
Frankfurt, Moscow and Amsterdam. A Dutch national, Kees Hoving holds a Master of Science degree
in Economics from Erasmus University Rotterdam and a Bachelor of Business Administration from
Nyenrode University, both in the Netherlands. He also holds the Certificate of Corporate Governance
from INSEAD.
Hamit Sedat Eratalar
Member of the Board of Directors, Chairman of the Audit Committee, Member of the Compensation
Committee, Member of the Credit Committee
Born in 1952, Mr. Eratalar is a graduate of Ankara University, Department of Economics and Public
Finance. He worked as a partner at Arthur Andersen between 1981 and 2001. Serving as a founding
partner at Eratalar Management Consulting since 2001, Mr. Eratalar has been working as a Member
of Board of Directors at Deutsche Bank A.Ş. since August 2001 and worked as a Board Member
responsible from Internal Systems between 2006 - 2019. Eratalar assumed the role of Chairman of
the Audit Committee in May, 2019.
Deutsche Bank A.Ş.
Annual Report 2022
Salah Mohd I Al-Jaidah
Member of the Board of Directors
Salah Jaidah joined Deutsche Bank in 2011 as Chief Country Officer for Qatar and Chairman of DB
MENA Prior to joining Deutsche Bank, he held the positions of General Manager and Chief Executive
Officer of various banks in Qatar. Jaidah has a Bachelor of Business from Texas Christian University
and has completed an Advanced Management Programme at Oxford Business School.
Özge Kutay
Member of the Board of Directors, CFO and COO, Member of the Credit Committee
Born in 1970, Ms. Kutay is a graduate of the Faculty of Business Administration at Istanbul University.
Starting her career at an independent audit firm in 1993 and worked at financial control unit of a local
bank, Ms. Kutay has 29 years of experience in banking and business administration. Having been
employed by Deutsche Bank A.Ş. since 1998, she served as an Assistant General Manager between
2001 and 2012 before being appointed as a member of the Board of Directors in October 2012.
None of the members of the Board of Directors is involved in transactions with the Bank either in their
own capacity or on behalf of third persons or engaged in operations considered under the prohibition
of competition.
Senior Management
Orhan Özalp, Member of the Board of Directors, CEO
Member of the Board of Directors, Chief Country Officer, Chief Executive Officer,
Chairman of the Credit Committee
Orhan is the Chief Country Officer of Türkiye, CEO of Deutsche Bank A.S and also heads the Central
Eastern Europe, Balkans, Türkiye and Israel coverage teams at Deutsche Bank. He joined Deutsche
Bank in 2006 and held various positions in Financial Institutions Coverage, Structured Product
Origination and Sales, FICC and Equity Derivatives Sales. Orhan later became a Managing Director
in Institutional Coverage and appointed as CEO of Deutsche Bank A.Ş. in January 2019. He holds BA
degrees in Economics and Business Management from Koc University.
Özge Kutay, Member of the Board of Directors responsible of Financial Reporting and AFC, Chief Operating
Officer
Born in 1970, Ms. Kutay is a graduate of the Faculty of Business Administration at Istanbul University.
Starting her career at an independent audit firm in 1993 and worked at financial control unit of a local
bank, Ms. Kutay has 29 years of experience in banking and business administration. Having been
employed by Deutsche Bank A.Ş. since 1998, she served as an Assistant General Manager between
2001 and 2012 before being appointed as a member of the Board of Directors in October 2012.
Deutsche Bank A.Ş.
Annual Report 2022
Esra Özakdağ, Director, Corporate Bank, Financial Instutions, Cash Management and Trade Finance
Born in 1983, Mrs. Özakdağ has a Bachelor’s Degree in Economics and International Relations from
Connecticut College and an Executive MBA degree from Boğazici University. Having served in the
banking sector since 2006, Esra Özakdağ joined Deutsche Bank in 2012. Özakdağ works as a
manager in Corporate Bank Cash Management and Trade Finance, FI.
Feyza Aktaş, Director- Corporate Bank, Local Corporate Coverage & Corporate Cash Management
Born in 1972, Ms. Aktaş graduated from the Marmara University with a degree from the Department
of International Relations. Serving in the corporate banking sector since 1995 mainly in the
international banks, Ms. Aktaş joined Deutsche Bank A.Ş. in 2007. In addition to the management of
our Local Corporate Coverage Unit since 2012, she has also been assigned as the manager of Cash
Management Unit in 2019.
Kaan Kantarcıoğlu, Director, Compliance and Anti Financial Crime
Born in 1970, Kaan Kantarcıoğlu graduated from Boğaziçi University, Department of Political
Science and International Relations. Since 1993, Kantarcıoğlu worked in various roles within
banking and Turkish capital markets sectors and joined Deutsche Bank Group in 2004. Kantarcıoğlu
was appointed as Head of Compliance and Anti Financial Crime and Compliance Officer of
Deutsche Bank A.Ş. on March 15, 2017. At the same time, VP responsible from Internal Control,
appointed to perform internal control activities of the Bank, administratively reports to Kantarcıoğlu.
Nesrin Akyüz, Director, Finance
Born in 1975, Nesrin Akyüz graduated from the Middle East Technical University with a degree from
the Department of Business Administration. Starting her career in an independent audit firm and
having gained auditing experience in various banks since 1997, Akyüz joined Deutsche Bank A.Ş. in
2006.
Pınar Şengün, Director, Corporate Bank, Securities Services
Born in 1972, Ms. Şengün is a graduate of the Faculty of Economics at Istanbul University and holds
a master’s degree from the International Relations Department at Istanbul University. Ms. Şengün
has 28 years of experience in banking and capital markets. Having been employed by Deutsche Bank
A.Ş. since 2005, she served as the Head of Sales and Relationship Manager for international clients
between 2005 and 2020 before being appointed as the Head of Securities Services Türkiye in 2021.
Senem Ertuncay Kuzu, Director, Corporate Bank
Born in 1976, Ertuncay Kuzu has a Bachelor’s Degree in Economics from Middle East Technical
University. Have been working in the banking sector since 1998, Ertuncay Kuzu has joined
Deutsche Bank A.Ş. in 2007. Ertuncay Kuzu is Head of Corporate Banking Coverage division since
2016. Within 2020 Local Corporate Coverage relationship management has been added under her
responsibility; within 2021 she was appointed as Head of Corporate Bank.
Deutsche Bank A.Ş.
Annual Report 2022
Sevla Gonca, Director, Investment Bank – Structured Lending Solutions
Born in 1984, Sevla Gonca holds an undergraduate degree in Finance and International Business
from The George Washington University and a MBA from the Said Business School of Oxford
University. She has held various Global Markets Sales positions at international banks since 2005. In
2018 she has joined Deutsche Bank A.Ş. Investment Banking team.
Ümit Yılmazcan, Director, Investment Bank, Fixed Income and Currencies
Born in 1978, Ümit Yılmazcan received a Bachelor’s Degree of Science in Mechanical Engineering
from Bogazici University, and a MBA from Koc University. Joining DB Group in 2004, Mr. Yılmazcan
held different positions in equity derivatives and initiated many key projects DB Group and Turkish
Capital Markets. Mr. Yılmazcan is serving as a Director in Fixed Income and Currencies Department
since 2020.
Abdullah Kaçmaz, Vice President, Internal Audit
Born in 1980, Kaçmaz graduated from Istanbul University, Department of Economics. Kaçmaz
started his banking career in 2002 and joined Deutsche Bank A.Ş. in 2011. Kaçmaz holds CIA
(Certified Internal Auditor), CISA (Certified Information Systems Auditor), CRMA (Certification in
Risk Management Assurance) and CRISC (Certified in Risk and Information Systems Control)
certificates. Kaçmaz was appointed as Head of Internal Audit of Deutsche Bank A.Ş. on November
17, 2014.
Ali Berge Dikmen, Vice President, Investment Bank, Structured Treasury Solutions
Born in 1987, Berge Dikmen graduated from Robert College and Galatasaray University with a
degree in Economics. He holds a Masters in Management degree from Fuqua Business School of
Duke University. He has started working for Deutsche Bank A.Ş. in 2012 upon graduating from Duke,
and has held various positions in Global Markets Sales desk. He has been serving as a Vice President
in Investment Bank since 2018.
Can Göğüş, Vice President, Credit Allocation
Born in 1971, Göğüş holds a Bachelor’s Degree of Science degree in Mechanical Engineering from
Tennessee Technological University and an MBA from Carnegie Mellon University. Göğüş started his
professional career in 1996 and has been working in corporate client coverage & credit fields of the
banking sector since 2002. Göğüş joined Deutsche Bank A.Ş. in 2017.
Esra Kumru Besim, Vice President, Risk Management
Born in 1973, Kumru Besim graduated from Sankt Georg Austrian College and Istanbul University,
Faculty of Business Administration (English). After completing a certificate program in University of
California, Berkeley, Besim started her banking career in 1998 in Financial Control and Planning
departments of various banks and joined Deutsche Bank A.Ş.’s Finance Unit in 2006. After
establishing Internal Control under the Compliance and Internal Control Unit in 2011, she was
appointed as the Vice President responsible from Risk Management in April 2015
Deutsche Bank A.Ş.
Annual Report 2022
Mehmet Çağlayan, Vice President, Technology
Born in 1977, Mehmet Çağlayan holds a Bachelor’s Degree from Yıldız Technical University,
Mathematical Engineering and a Graduate Degree from Marmara University, Institute of Banking and
Insurance. Çağlayan started his career in 1997 in Retail Banking Product Development Unit of
Information Technologies Department. Having joined Deutsche Bank A.Ş. in 2001, Mehmet Çağlayan
is the manager in charge of Information Technologies.
Merdan Yılmaz, Vice President, Operations
Born in 1968, Merdan Yılmaz graduated from İstanbul University, Faculty of Political Sciences and
Department of Public Administration. Merdan Yılmaz actively participated in many new banking
initiatives; he worked in the Operations Unit during the establishment phase of Personal Banking in
a foreign bank, in Investment Banking Mid Office during the process of establishment of another
foreign bank office and as Project Management and Business Development Manager. He joined
Deutsche Bank A.Ş. in 2005 as the Manager responsible from Investment Banking and Corporate
Banking Operations
Nazım Aslan, Vice President, Treasury
Born in 1980, Aslan holds an undergraduate degree in Economics from Boğaziçi University and a
master’s degree in Money, Capital Markets and Financial Institution from İstanbul University. Aslan
started his professional career in 2005 and has been working in Treasury field of the banking sector
since 2008. Aslan joined Deutsche Bank A.Ş. in 2017.
Mehmet Nihat Fırat, Vice President, Human Resources
Mehmet Nihat Fırat, born in 1971, holds a master’s degree from Bahçeşehir University. 15 years, out
of Fırat’s total experience since 1998 in various companies, is in banking sector. He manages the
Human Resources Unit at Deutsche Bank Türkiye since July 2019.
Nihat Erhan Aykut, Vice President, Investment Bank, Fixed Income and Currencies
Born in 1985, Nihat Erhan Aykut graduated from Robert College and received a Bachelor’s Degree
of Economics from Yıldız Technical University and he has attended to master degree of Business
Administration in Yıldız Technical University. Mr. Aykut joined Deutsche Bank A.Ş. in 2020, serving
as a Vice President in Fixed Income and Currencies Department. Prior to joining Deutsche Bank A.Ş.,
Mr. Aykut held different positions in Investment Banking in various international banks.
Deutsche Bank A.Ş.
Annual Report 2022
Özge Sanioğlu, Vice President, Legal and Data Protection
Born in 1980, Mrs. Sanioğlu graduated from İstanbul University, Faculty of Law. Sanioğlu has 20
years of professional experience, 16 of which were in the banking sector. Mrs. Sanioğlu has been with
Deutsche Bank A.Ş. since July 2012.
Sitare DevrimTulumbacı, Vice President, Trade Finance
Born in 1974, Tulumbacı has a Bachelor’s degree from Istanbul Technical University, Department of
Environmental Engineering. Started her career as Environmental Engineer in 1996, Tulumbacı
started to work in the banking sector in Trade Finance Operations and Advisory units in 2000 and
joined Deutsche Bank A.Ş. as Head of Trade Finance Operations in 2012. Having total 20 years’ of
experience in banking, Tulumbacı is working as the Head of Trade Finance Advisory & Services Unit
as of September 2019 and as Head of Trade Flow Unit as of September 2020.
Ümit Rüstem Tok, Vice President, Technology
Born in 1979, Ümit Rüstem Tok graduated from Girne American University, Computer Engineering
Department. Tok has assumed several roles and positions in Deutsche Bank A.Ş.’s Information
Technologies Unit since 2006 and became the Manager responsible from Information Technologies
Operations in 2017.
Barbaros Utku Yıldız, Assistant Vice President, Chief Security Office
Born in 1979, Barbaros Utku Yıldız received a Bachelor’s degree from Kocaeli University Industrial
Engineering and a Master’s degree in Business Administration (MBA) from University of North
Alabama. Starting his career as an engineer, Mr. Yıldız held different positions in Internal Audit,
Internal Control and Compliance units in mainly banking and finance industries starting from 2005.
Mr. Yıldız was awarded the CIA (Certified Internal Auditor) certificate in 2011, and also holds the
COSO Internal Control and ISO 27001 Lead Auditor certificates. Participated in projects about
personal data protection and information security management system implementation throughout
his professional career, Mr. Yıldız has been working as Chief Information Security Officer (CISO) in
Deutsche Bank A.Ş. since September 2020.
Buse Özerbek, Assistant Vice President, Investment Bank Operations
Born in 1986, Buse Ozerbek graduated from Dokuz Eylul University, Faculty of Economics and
Administrative Sciences. Ozerbek has joined Deutsche Bank A.Ş. in 2011 and has over 11 years of
experience in Operations. Ozerbek was appointed as Head of Investment Banking Operations in
2021.
Deutsche Bank A.Ş.
Annual Report 2022
Filiz Yalçın, Assistant Vice President, Internal Control
Born in 1980, Filiz Yalçın has undergraduate degree in Bilkent Üniversitesi, Department of Economics
and masters degree in Bournemouth University, Department of Information Systems Management.
She has started her business career in 2002. Yalçın has started working in audit and control areas in
2006 and she has certification on Risk Management (CRMA) and COBIT 5. Yalçın has been working
as Internal Control responsible in Deutsche Bank A.Ş. since October, 2017.
Independent Auditor
During the Ordinary General Assembly of the Bank held on March 31, 2022, it was resolved with
unanimous vote to select Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müavirlik A.Ş. as the
Independent Auditor for a period of 1 year.
Committees and Councils
Audit Committee
H. Sedat Eratalar, Chairperson
Frank H. Krings, Member
Mark Michael Bailham, Member
Kornelis Jan Hoving
The Audit Committee was established on October 31, 2006, pursuant to the Board of Directors Resolution
no. 48/6. The Audit Committee convened 13 times during the 2022 fiscal year.
Credit Committee
Orhan Özalp, Chairperson
H. Sedat Eratalar, Member
Özge Kutay, Member
The Credit Committee was established to allocate credits under the authority delegated to the committee
by the Board of Directors’ decision no. 84 dated December 13, 2010. The Committee takes loan decisions
within the limits determined for itself, and by determining the allocation conditions. The Credit Committee
convenes weekly or when deemed necessary.
Compensation Committee
Frank Helmut Krings, Chairperson
H. Sedat Eratalar, Member
Mark Michael Bailham, Member
Deutsche Bank A.Ş.
Annual Report 2022
Deutsche Bank A.Ş. Board of Directors is, in addition to the application fields of Global Compensation
Policy - Deutsche Bank Group, also required to approve, regularly review and apply appropriate Policies
regarding Compensation of Senior Managers of the Internal Systems Units, Variable Compensation and
its Principles, as stipulated in the Guideline on Good Remuneration Practices in Banks (Guideline), publicly
announced by the Banking Regulation and Supervision Agency (BRSA). Board of Directors of Deutsche
Bank A.Ş. performs the responsibilities indicated by means of a Compensation Committee to be made up
of at least three members.
Compensation Committee convenes at least twice annually and reviews compliance of the Compensation
Policy with the local legislation and global applications and issues a report to the Board of Directors. This
review also includes whether or not compensation processes and applications of Deutsche Bank A.Ş. are
compatible with the risk appetite, strategy and long-term goals of the Bank and whether or not they are
in contradiction with the provisions of the BRSA’s Guideline. Head of Human Resources Unit of Deutsche
Bank A.Ş. attends Compensation Committee meetings to provide the necessary explanations on
performance or compensation and to share his/her opinions. Minutes of the Compensation Committee
are kept by the Head of Human Resources at the Human Resources Office.
Executive Council (EXCO)
Orhan Özalp, Chairperson
Özge Kutay, Vice Chairperson, Member
Pınar Şengün, Member
Nesrin Akyüz, Member
Feyza Aktaş, Member
Esra Özakdağ, Member
Senem Ertuncay, Member
Sitare Devrim Tulumbacı, Member
Sevla Gonca, Member
Ümit Yılmazcan, Member
Ali Berge Dikmen, Member
The Executive Council meets once a month for a number of purposes including Deutsche Bank’s global
strategies to be followed in Türkiye, generating ideas for the mutual development of coordination and new
business ideas among the executive units established in Türkiye, in addition to exploring cross- selling
opportunities, coordination with the infrastructure units and assessing any risks regarding the reputation
of Deutsche Bank’s franchise.
Operating Council (OPCO)
Özge Kutay, Chairperson
Nesrin Akyüz Vice Chairperson, Member
Kaan Kantarcıoğlu, Member
Mehmet Nihat Fırat, Member
Deutsche Bank A.Ş.
Annual Report 2022
Özge Sanioğlu, Member
Kumru Besim, Member
Utku Yıldız, Member
Merdan Yılmaz, Member
Nazım Aslan, Member
Mehmet Çağlayan, Member
Ümit Rüstem Tok, Member
Buse Özerbek, Member
The Operating Council convenes once in every month. The Council is a platform where all Operations,
Support and Control Units discuss the developments, changes and problems regarding the operations of
the Bank, provide solutions and organize the effective utilization and allocation of resources.
Assets and Liabilities Committee (ALCO)
Orhan Özalp, Chairperson
Nazım Aslan, Vice-chairperson, Member
Özge Kutay, Member
Senem Ertuncay, Member
Carsten Anders, Member
Nesrin Akyüz, Member
Kumru Besim, Member
Hakan Birinci, Member
Erhan Aykut, Member
The ALCO is responsible from analysing the Bank’s future capital requirements by overseeing the
structure of the Bank’s assets and liabilities, and evaluating risk-bearing assets, liquidity and market risk.
The ALCO convenes quarterly under the presidency of the Bank’s CEO.
Information Systems Strategy and Steering Committee
IS Strategy and Steering Committee is, on behalf of the Board of Directors, responsible from supervising
Information Systems investments to see whether they are in line with the IS strategy plan, monitoring
Information Systems targets to see whether they are in line with the business targets of the bank, regularly
and directly reporting to the Board of Directors on these matters, reviewing the IS strategy plan at least
annually, making the necessary revisions on it, if required, and presenting it to the Board for approval and
from monitoring activities of the IS Steering Committee. The Committee is also liable from prioritization
of IS investments and projects, monitoring the on-going IS projects, resolving resource disputes between
projects, providing guidance to ensure that IS architecture and IS projects are aligned with the regulations
Deutsche Bank A.Ş.
Annual Report 2022
and monitoring service levels of IS services. The Committee convenes twice a year and presents a report
to the Board of Directors.
Orhan Özalp, Chairperson
Özge Kutay, Vice-Chairperson
Mehmet Çağlayan, Member
Ümit RüstemTok, Member
Merdan Yılmaz, Member
Nesrin Akyüz, Member
Mehmet Nihat Fırat, Member
Senem Ertuncay, Member
Ümit Yılmazcan, Member
Kaan Kantarcıoğlu, Member
Özge Sanioğlu, Member
Kumru Besim, Member
Information Security Committee
The ultimate responsibility for ensuring data security in the Bank rests with the Board of Directors. Board
of Directors is liable to show determination in bringing the precautions taken for information systems to
the desired level and to allocate necessary resources for these activities. As a requirement of this
responsibility, Board of Directors builds and establishes an information security management system,
execution of which it is liable to supervise. Information security policy, procedures and process
documentation, governing the execution of information security management system on a bank-wide
manner, are issued. Issuance of the information security policy and application of it are undertaken by the
Information Security Committee on behalf of the Board of Directors. Furthermore, it is under the
responsibility of this Committee to conduct regular threat and risk assessment works and activities in
correlation with information assets, monitor and report security breach events and incidents, monitor
current security vulnerabilities affecting information assets and to take the required actions and to assume
works and activities to increase information security awareness. The Committee convenes twice a year
and presents a report to the Board of Directors.
Özge Kutay, Chairperson
Utku Yıldız, Vice-Chairperson
Mehmet Çağlayan, Member
Ümit Rüstem Tok, Member
Merdan Yılmaz, Member
Nesrin Akyüz, Member
Mehmet Nihat Fırat, Member
Senem Ertuncay, Member
Ümit Yılmazcan, Member
Deutsche Bank A.Ş.
Annual Report 2022
Kaan Kantarcıoğlu, Member
Özge Sanioğlu, Member
Kumru Besim, Member
Information Systems Continuity Committee
IS Continuity Committee, established under the IS continuity management process, which is a part of
business continuity management and plan, in order to ensure continuity of IS services used in providing
banking activities, is responsible from building and ensuring application of the Information Systems
continuity management process and IS Continuity Plan, and after due consideration of all factors relating
to events, announcing that there is a crisis, deciding whether the IS continuity plan will be launched and
ensuring coordination of other recovery, continuity and response teams. The Committee convenes once
a year and presents a report to the Board of Directors.
Özge Kutay, Chairperson
Mehmet Çağlayan, Vice-Chairperson
Utku Yıldız, Member
Ümit Rüstem Tok, Member
Merdan Yılmaz, Member
Nesrin Akyüz, Member
Mehmet Nihat Fırat, Member
Senem Ertuncay, Member
Ümit Yılmazcan, Member
Kaan Kantarcıoğlu, Member
Özge Sanioğlu, Member
Kumru Besim, Member
Data Sharing Committee
Data Sharing Committee serves as main governance body to review requests for transfer of client data
and/or banking secret data out of DB A.Ş. Coordinating procedures around sharing of confidential client
data and banking secret data and assessing the suitability of incoming client data and banking secret data
sharing requests are among the main responsibilities of the Committee. The Committee convenes once a
month.
Özge Kutay, Chairperson
Kaan Kantarcıoğlu, Vice-Chairperson
Utku Yıldız, Member
Özge Sanioğlu, Member
Filiz Yalçın, Member
Deutsche Bank A.Ş.
Annual Report 2022
Participation of Board Members and Committee Members in Meetings
The Board of Directors meets once in every two months in accordance with the Bank’s Articles of
Association and governing legislation to oversee matters related to the Bank and to make decisions
(within the scope of its duties and responsibilities). When deemed necessary, the Chairman of the Board
of Directors may also calls for meetings. During 2022, members participated in Board meetings regularly,
conforming to the criteria for a quorum to convene and to make decisions.
The Audit Committee meets at least once a month. During 2022, members participated in Audit
Committee meetings regularly, conforming to the criteria for a quorum to convene and make decisions.
Transactions conducted by Members of the Board of Directors with the Bank
Pursuant to the permission granted by the Bank’s General Assembly, none of the members of the Board
of Directors is involved in transactions with the Bank either in their own capacity or on behalf of third
parties or engaged in operations considered under the prohibition of competition.
Financial Benefits provided to Senior Executives
Total benefits provided to senior executives such as Chairman of the Board of Directors, members of the
Board, the CEO, the Assistant General Managers and supervisors of the units amounted to TRY 83,345
thousands. Furthermore, expenses such as transportation and accommodation of senior executives
amounted to TRY 1,068 thousands.
Information on Dividend Distribution Policy
The Bank has adopted as its dividend distribution policy to distribute all of its profit available for
distribution to its shareholders by receiving the necessary BRSA approval, provided that there are no
unfavorable conditions prevalent in the national and/or global economic conditions and Deutsche Bank’s
total equity adequacy ratio is at the target level. The allocation and the distribution of the net profit are
decided at the Deutsche Bank A.Ş. shareholders’ Annual General Assembly.
Banking Regulation and Supervision Agency’s (BRSA) permission is sought for dividend distribution.
BRSA, with a letter sent to the Banks’ Association of Türkiye, stated that taking into account that the
ongoing economic instability and recession expectations around the world, the prudent policy maintained
so far to ensure that shareholders’ equity structure of banks is robust should be pursued further; In this
respect, it will be beneficial if the profit to be earned in 2022 and the profit and reserves that were despite
earned before 2022 were not distributed but kept in the shareholders’ equity will not be distributed in a
way that will require cash outflow but retained as reserves; however, possible requests to distribute
dividends will be assessed considering the prudent policy and conditions unique to banks such as capital
adequacy ratio. Dividend distribution shown below will be presented to the approval of the General
Assembly of the Bank according to the permission which was received from BRSA.
Deutsche Bank A.Ş.
Annual Report 2022
Dividend Distribution Table for 2022 (TRY Thousands)
2022 Dividend Distribution TRY k
Net Profit of the Period 848.117
1
st
Legal Reserves based on Article 519 of the Turkish Commercial Code 42.406
1
st
Dividend to Shareholders 23.500
2
nd
Dividend to Shareholders 61.312
2
nd
Legal Reserves over paid and distributed amounts 6.131
Amounts allocated to Extraordinary Reserves 714.768
Dividend Ratio Table
Dividend Amount
Total Corresponding
Total Distributed to Share
Distributed Dividend / Net With a Nominal
Group Dividend Distributable DividendValue of TRY 0.1
Cash Bonus Ratio of
(TRY) (TRY) the Period (%)Amount (TRY) Ratio (%)
GROSS - 84.811.700 - 10,00 0,02 18,05
NET - 80.571.114 - 9,50 0,02 17,14
During the Annual General Assembly of the Bank to be held on March 31, 2023, it will be presented to the
approval of the shareholders that out of the net profit for the period that ended on December 31, 2022 in
the amount of TRY 848.117 thousands, TRY 84.812 thousands will be distributed as dividend, TRY
48.537 thousands will be set aside as legal reserves and TRY 714.768 thousands will be allocated to
Extraordinary Reserves.
Deutsche Bank A.Ş.
Annual Report 2022
Human Resources Policy
Recruitment: Employing the right persons with the right qualifications, who will apply Bank’s strategy,
adopt and appropriate Deutsche Bank’s corporate culture, at the right positions is the basic principle
underlying the recruitment policy. Managers, who are responsible from execution of their unit’s activities
in line with the applicable legislation, should have sufficient expertise in their unit’s area of activity and
employees of each unit should have the qualifications their duties, authorities and responsibilities require.
It is essential that recruitment processes and applications be based on objective criteria and executed in
accordance with the principle of equal opportunity.
Open positions are published at Deutsche Bank’s career portal and intra-group requests and group
employee references are primarily assessed; however, direct applications to the Bank are also taken into
account. Contractual career portals and, when necessary, human resources consultancy firms deemed
are engaged during the recruitment process. Recruitment process is executed via interviews held by
Human Resources upon participation of heads of relevant units. During the interviews, candidates are
assessed in terms of their suitability to the organization and conformity to the qualifications sought by the
relevant position. These interviews enable recruitment of potential candidates in appropriate positions
within the organization. Job offers are made to candidates whose processes are successfully completed;
those candidates who cannot be recruited within the Bank as a result of their interviews are notified to
this effect.
Career Management: The Bank provides various internal career development opportunities to its
employees including internal recruitment, appointment, promotion, rotation and international
assignments in accordance with DB Group’s strategy and business requirements. International
assignments are important for the Bank because of the experience they bring to the employees.
Employees are given the chance to have access to global opportunities related to the unit in which they
are currently employed and to apply to positions suitable for themselves. In the short and long-term
assignments, it is aimed to ensure that employees are employed in the right place, at the right time and
that human resource is used efficiently. Professional knowledge, skills and sense of responsibility of
employees, who exceed the expectations with their high performance, make them candidates for higher
positions.
Promotions: Managers of candidates for higher positions up to Managing Director level brief the EXCO
on the performance of the employee. EXCO, based on the job definitions and performance criteria
determined by the senior management, reviews the request and sends it to the Board of Directors for
further approval, delays it for further assessment on a future date or vetoes the request. Human
Resources briefs also Compensation Committee about the promotions.
In case of promotion of Head of Human Resources or an Executive Council member, Board of Directors
will assess the promotion and provide the approval.
Deutsche Bank A.Ş.
Annual Report 2022
Appointments: Human Resources communicates the criteria sought for senior management
appointments in Internal Systems in position basis by giving details such as experience, competence,
license, certificates, etc. Appointment resolutions are adopted by the Board of Directors. Audit Committee
may give recommendations to the Board of Directors about promotions related with Internal Systems.
Performance Management: Targets are assigned to each employee based on their duties and
responsibilities, Bank’s strategies, aims and values. It is essential that performance criteria be established
so as not to give rise to any conflicts of interest. After the targets are communicated with the employees,
their strengths as well as weaknesses are observed during the assessment process. After the assessment
of the employee by the manager, performance management continues with feedback and approval from
the employee. Results of performance assessment provide data for career planning and a basis to
determine training and development needs and remuneration. Performance of internal systems personnel
are assessed independent from the performance of executive units they control.
In line with Bank’s continuous learning and development strategy, career management and planning are
made in order to increase skills and competencies of employees, to ensure that they realize their potentials
by means of custom-made investments and to enrich career opportunities.
Furthermore, supervisors of personnel employed in units engaged in different dimensions of operational
risk such as Compliance and Anti-Financial Crimes, Human Resources, Information Technologies and
Operations and Finance, which assume responsibility for factors that have direct and/or indirect impact
on general operational risk level of the banks or those units that bear responsibility in areas that indirectly
cause the risk are, whilst liable from management of the operational risk in their own area of activity, on
the other side, assess, where appropriate or necessary, provision of information and support to other units
regarding the types, level and management of operational risk to which they are exposed within the scope
of Performance Management.
Remuneration and Benefits: Remuneration and benefits policy of the Bank is based on establishing a
working environment in accordance with the general applications of the Bank and principles that foresee
fair and balanced remuneration based on work and performance, in parallel to the remuneration data
unique to the sector, which has the ability to compete in the labour market; rewards high performance;
encourages success and is compatible with globally-acknowledged values. Payments made to employees
are associated not only with the short-term performance of the Bank such as profit or revenue, but also
determined so as to have a positive impact on the corporate values and be in harmony with objective
criteria. Premium payments exceeding a certain limit are deferred. It is ensured that remunerations paid
to employees are in harmony with the ethical values, interior balance and strategic targets of the Bank.
Salaries of Internal Systems personnel are determined based on their performance regarding their own
functions. Salaries are reviewed based on criteria such as market dynamics, medium and long term
requirements, performance of the Bank and its employees, and revised when deemed fit. Board delegated
Compensation Committee is responsible from review of Compensation Policies, ensuring their
compliance with long-term strategies of the Bank and application.
Deutsche Bank A.Ş.
Annual Report 2022
Benefits provided to employees other than annual salary payments are Private Health Insurance, Life
Insurance, Commuting Allowance, Benefit AVITA (Employee Assistance Program), and Lunch Ticket.
CEO, COO and Human Resources are authorized in managing and executing all kinds of benefits and
benefits related procedure and policies.
Training and Development: As of the first day of their employment, Bank employees are expected to
complete training sessions on Bank’s corporate culture, general compliance rules and compliance and
risk rules unique to the Bank within 1 month.
It must be ensured that personnel with the same seniority and for the purpose of engagement in similar
activities are employed with similar levels of experience and knowledge and it is essential that these
personnel are trained in similar topics with equal durations. It is confirmed before employment whether
the personnel who will be employed in positions with licensing requirements are duly licensed. Employees
who may be employed in positions with licensing requirements are encouraged to attend licensing
examinations and to receive the required licenses.
Training requirements of the employees are determined in accordance with performance assessments,
changing legislation and needs, in cooperation with their managers. Deutsche Bank employees, in
addition to the locally executed training programs, also make use of the international opportunities and
experience provided by Deutsche Bank Group. The Bank considers development of its employees in the
international arena important; therefore, training sessions contributing to personal development of the
employees are also provided. With a central internet based training management system (Learning Hub
), all training-related applications are consolidated and all employees have been provided with access with
personal passwords.
As of December 31, 2022, Deutsche Bank A.Ş. had 122 employees and Personnel Turnover Rate during
2022 was 1,72%. 72,2% of our employees are university graduates,23% hold Masters and/or PhD degrees
and 4,9 % are high school graduates.
As of December 31, 2022, 44.3% of our employees are male and 55.7 % are female.
As of 31 December 2022, the average age of employees is 39 , and their average working time at the Bank
8.2 years. In total throughout 2022, 167 hours of legislative training and 2028 hours of internal training
were provided.
Deutsche Bank A.Ş.
Annual Report 2022
Outsourced Services
The business lines and names of the entities that we have outsourced services in 2022 are listed below pursuant to
Regulation on Bank’s outsourced Services.
Company
Service Recipient Unit
Service Detail
Orange Business Türkiye
Bilişim A.Ş..
(Subcontractor: NGN Bilgi
Teknolojileri Veri Merkezi
Hiz. Ve Danışmanlık A.Ş.)
IT Operations
Secondary Data Centre, Disaster Recovery
Centre and provision of building in
accordance with the relevant plan
Dataassist Bilgi
Teknolojileri A.Ş.
Human Resources
Payroll services
Manpower İnsan
Kaynakları Ltd. Şti.
Human Resources
Human Resources services
BİS Çözüm Bigisayar ve
Entegrasyon Hiz. Ve Tic.
A.Ş.
Technology
Licensing and maintenance of the main
banking system, optional application
development (software) projects
Deutsche Bank AG
Compliance & IT
Operations
Used by Compliance and Internal Control for
suspicious activity detection. Maintenance
and repairs of the system; receiving L2 and L3
support and support in scenario writing.
Deutsche Bank AG
Operations
Operational support services under Hotscan
(embargo filtering) application
Deutsche Bank AG
Operations
Maintenance and support services for ETL
interface application between DBTrader, FMS
and Winbank
Deutsche Bank AG
Operations
Support services for receiving and sending
SWIFT messages
Deutsche Bank AG
(Subcontractor:
Smartstream
Technologies Ltd)
Operations
Operational support services used for
reconciliation application
CBRE Emlak Danışmanlık
Limited Şirketi
Corporate Services
Provision of correspondence services and
management of card access system in the
Bank
Deutsche Bank A.Ş.
Annual Report 2022
Company
Service Recipient Unit
Service Detail
MAPA Global Bilgisayar
Yazılım Danışmanlık San.
Ltd. Şti.
Technology
Developing application (interface) that
ensures communication between the systems
of the Central Bank and the Bank and
maintenance of the same.
Platin S.M.M.M. Ltd. Şti.
Finance
Accounting entries, issuance of tax returns,
printing ledgers, filing accounting entries,
group reporting
Deutsche India Private
Limited
Operations
Client Information Services
Iron Mountain Arsivleme
Hizmetleri Anonim Sirketi
Corporate Services
Procuring archiving, destruction and
document classification services
Risk Yazılım Teknolojileri
Dan. Eğt. Tic ve Ltd. Şti.
Risk Management
Calculation of Bank’s Capital Adequacy Ratio
and systemic control of the ratio to see its
compliance with the limits pre-determined by
the Bank
Turkkep Kayıtlı Elektronik
Posta Hizmetleri Sanayi
Ve Ticaret Anonim Şirketi
Corporate Services
Registered e-mail Sending System.
E-correspondence package (EYP) and
archiving services to be taken from the
relevant supplier to provide registered e-mail
services for sending and receiving
correspondence to and from authorities -
Registered e-mail Sending and Management
System
Vodafone Net İletişim
Hizmetleri A.Ş
IT Operations
Server in Primary Data Centre Scope, Network
Devices and Hosting Service of Relevant
Hardware
Tepe Savunma ve
Güvenlik
Chief Security Office
Providing private security services by the help
of armed and/or unarmed Private Security
Personnel in the service areas determined by
the Bank, when requested by the Bank.
Deutsche Bank AG
Chief Security Office
Account Lifecycle and Access Management,
Authorisation and Access Control,
Cryptographic Services, Cyber Forensics,
Cyber Hygiene Services, Cyber Threat
Analytics and dbDAM, Data Leakage
Protection, Information Security Control
Assurance, Information Security Engineering,
Information Security Incident Analysis and
Response, Malware Response and Research,
Network Access and Traffic Control, Neutral
Control, Privileged Access Management,
Recertification, Segregation of Duties, Threat
Intelligence
Deutsche Bank AG
(to be provided from 3
branches in Germany,
England and USA)
IT Operations
IT Infrastructure Management and
Governance Service, Web Server Applications
Maintenance and Support Service, Windows
Active Directory Maintenance Services,
Network Security and Maintenance, Level 1
Deutsche Bank A.Ş.
Annual Report 2022
Company
Service Recipient Unit
Service Detail
Helpdesk Services, End User Outsourcing
Personnel Service, User Account
Management Service, Data Storage Service,
End User Support Service
Maro Uluslararası Bilgi
Teknolojileri Danışmanlık
Geliş. Destek Hizm. San. Ve
Tic. A.Ş.
Technology
IT human resources support
Related - Party Transactions
Within the scope of its activities, the Bank enters into various transactions with Group companies. These
transactions are conducted at market prices and for fully commercial purposes. The resulting profit/loss
is reflected in the income statement.
The related party transactions of Deutsche Bank A.Ş. are reported in detail in the notes to the financial
statements included in this annual report.
The Bank did not take part in any legal transactions with the controlling Company or with any party related
to the controlling Company and/or with the direction of the controlling Company for the benefit of the
controlling Company or its related parties. Since banking regulations and market conditions are taken into
account as far as the relations with the Group companies are concerned, measures are neither taken nor
specifically avoided to be taken for the benefit of the controlling Company or its related parties in the past
fiscal year.
Corporate Social Responsibility
Deutsche Bank A.Ş. considers corporate social responsibility to be an area of importance and priority. The
Bank takes a highly sensitive approach to the production of social responsibility projects and the support
of existing projects. Deutsche Bank A.Ş. is aware of the fact that social responsibility is as important as
providing customer satisfaction, employee motivation and a healthy, efficient and high-quality working
environment.
Deutsche Bank A.Ş. pays prioritized attention to ensure that its employees are individuals who are socially
and environmentally conscious, sensitive and prepared to take responsibility. Therefore, employees are
encouraged to take responsibility individually and to carry out their own projects.
Deutsche Bank A.Ş.
Annual Report 2022
Deutsche Bank employees both contribute to their own personal development and feel the satisfaction of
being able to cater to the well-being of their society.
We continue to support education:
A scholarship was provided within the scope of the Anatolian Scholars Project with Koç
University.
We continue to make contributions to non-profit organizations:
With the Bank’s contribution, we aim to reach 22,500 students via face-to-face training sessions
to be held and digital resources to be developed by teachers who have participated in KODA’s
(Rural Transformation Network) Learning Journey of the Rural Teacher Project, launched to
increase the quality of education of children living in villages and other rural areas.
Bank’s employees donated blood to the Turkish Red Crescent.
With the Bank’s contribution, our employees participated in Istanbul Marathon and provided
support to the education of autistic children by means of raising funds for Tohum Otizm Vakfı
(The Tohum Autism Early Diagnosis and Education Foundation).
3. Operating and Financial Review and Risk
Management Report of the Audit Committee
The Audit Committee did not observe any adverse occurrences regarding the Bank’s compliance and
anti-financial crimes, internal control, internal audit and risk management systems during the 2022
fiscal year. The Committee regularly corresponded with the Bank’s internal systems department
managers, closely monitored the Bank’s risk and operations and ensured that all measures were
taken for timely identification and elimination of any risk. Regarding the compliance of the Bank’s
accounting practices with the Banking Law No. 5411 and other applicable legislation, the Committee
reviewed the assessment of the independent auditors and did not encounter any discrepancies.
Our observations and opinions on the Bank’s risk management and internal control activities are as
follows:
Supervision by the Board of Directors and Executive Management: The Board of Directors consists
of experienced members who work actively in the banking sector, are specialized in various fields of
Deutsche Bank A.Ş.
Annual Report 2022
the banking profession and possess sufficient knowledge on different types of assumed risks, how
these risks occur and how they can be managed.
The Executive Management works in close contact with the Board of Directors, is knowledgeable and
experienced on risk and is capable of utilizing the know-how and experience of the parent bank,
Deutsche Bank AG, in these areas.
Responsibilities regarding continuous risk reporting associated with developments in the financial
markets, risk management practices and the Bank’s operations have been identified. Risk reporting
is performed on a daily basis.
The Board of Directors and the Executive Management monitor the reliability and functioning of
accounting and reporting systems through specialists who are not users of these systems.
The Board of Directors, Executive Management and the parent company, Deutsche Bank AG,
continuously review risk acceptance limits and implement the necessary preventive measures in
response to changing market conditions.
The Board of Directors, Executive Management and the parent company, Deutsche Bank AG, act
conscientiously to ensure that the Bank’s business units and business lines employ personnel who
possess the necessary knowledge, experience and expertise regarding the nature and scope of the
tasks being performed.
In addition, employees are offered the opportunity to benefit from the Deutsche Bank AG specialists,
their knowledge and experience.
Through “the Code of Conduct for Deutsche Bank Group” document notified to the Deutsche Bank
employees during the recruitment process against signature, the Board of Directors, Executive
Management and the main partner, Deutsche Bank AG, have determined the general rules in order
to form the human resources team to conduct the Bank’s activities in a safe and reliable way. Thus,
the necessary measures have been taken to carry out the Bank’s operations in a safe and reliable
manner and to ensure that employees are honest and ethical and that they behave consistently with
the Bank’s prudent management philosophy and conduct.
The Board of Directors and Executive Management, monitor all operations of the Bank adequately
through various internal audit and control systems.
Before the Bank embarks on a new line of business or launches a new product, the Board of Directors,
Executive Management and the parent company, Deutsche Bank AG, require the implementation of
New Product Approval and New Business Approval procedures to assess all potential risk which may
arise from such business or products, and provide the necessary infrastructure and internal controls
for the management of such risk.
Deutsche Bank A.Ş.
Annual Report 2022
The New Product Approval and New Business Approval procedures intend to overview the adequacy
of the Bank’s infrastructure necessary for identifying, monitoring and controlling the potential risk
before embarking on a new operation or launching a new product.
These policies, implementation methods and limits are consistent with the level of experience, goals
and objectives and financial strength of Deutsche Bank A.Ş. as well as of the parent bank, Deutsche
Bank AG.
Hierarchical structure of the authorities and responsibilities in the Bank’s operations are set out in
the organization chart.
On behalf of the Audit Committee
H. Sedat Eratalar, Audit Committee Chairman
Management Declaration
As a result of the assessment made by the Board of Directors of Deutsche Bank A.Ş. (“Bank”)
pursuant to Article 20 of the Regulation on Independent Audit of the Information Systems and
Business Processes, which became effective after being publicly announced at the Official Gazette
on December 31, 2021 with issue no. 31706, by the Banking Regulation and Supervision Agency and
the Circular Letter dated July 30, 2010 with no. B.02.1. BDK.0.77.00.00.010.06.02/3 on
“Management Declaration”, Board of Directors has approved that the internal controls on
information systems and banking processes are effective, adequate and compliant with the
applicable legislation for the audit period of January 1, 2022- December 31, 2022.
Audits
During the accounting period, Independent Auditor of the Bank performed interim quarterly reviews
and an annual audit.
Deutsche Bank A.Ş.
Annual Report 2022
Other Information Regarding Activities
No legal action was lodged against the Bank that would affect the Bank’s fiscal position and
actions.
No administrative or legal sanction was applied against the Bank’s Board of Directors.
During the Extraordinary General Assembly of the Bank held on January 5, 2023, it was duly
resolved to increase the fully paid-up capital of the Bank in the amount of TRY 135.000.000
to TRY 470.000.000 in total by increasing it TRY 335.000.000 more and to amend Article 7
of the Articles of Association of the Bank regarding capital stock as shown herein below.
Article 7
Capital Stock
The capital stock of the Bank is TRY 470 Million. The Capital Stock is divided into
4,700,000,000 registered shares each with a nominal value of TRY 0,1.
The previous capital stock of the Bank in the entire amount of TRY 135 million is fully paid by
the shareholders in free from all encumbrances.
The entire amount of TRY 335.000.000 increased this time has been committed by the
shareholders free from all encumbrances and entirely paid in cash.
The distribution of the Bank's capital among the shareholders is as follows:
Shareholder: DEUTSCHE BANK AG
Number of Shares: 4,699,999,060.00
Share Price (TRY): 469,999,906.00
Shareholder: SUDDEUTSCHE VERMÖGENSVERWALTUNG GMBH
Number of Shares: 236,74
Share Price (TRY): 23,67
Shareholder: DB INDUSTRIAL HOLDINGS GMBH
Number of Shares: 236.74
Share Price (TRY): 23.67
Shareholder: DEUTSCHE HOLDINGS (LUXEMBOURG) S. Á R. L
Number of Shares: 233.26
Share Price (TRY): 23.33
Shareholder: DB CAPITAL MARKETS (DEUTSCHLAND) GMBH
Number of Shares: 233.26
Share Price (TRY):23.33
Deutsche Bank A.Ş.
Annual Report 2022
Registration of the afore-mentioned Extraordinary General Assembly resolutions, which was
completed in January 16, 2023, was publicly announced at the Turkish Trade Registry
Gazette dated January 17, 2023 with issue no. 10749.
Operating and Financial Review
As of December 31, 2022, the Bank’s total assets amounted to TRY 11,406 million, increased by 93%
compared to the previous year.
At the end of 2021, loans amounted to TRY 2,891million; whereas, on December 31, 2022, they
increased by 35% and amounted to TRY 3,914 million. TRY 3,854 million of the loans are short-term.
Whilst at the end of 2021, total deposits amounted to TRY 1,489 million, they increased by 47% and
amounted to TRY 2,188 million on December 31, 2022. All of the time deposits are overnight.
While the amount of Loans Received was TRY 2,994 million at the end of 2021, it became TRY 5,897
million on 31 December 2022.
While off-balance sheet liabilities were TRY 7,696 million on December 31, 2021, it increased to TRY
48,232 million on December 31, 2022, due to the increase in derivative transactions.
By the end of 2022, the Bank’s net profit after taxes was TRY 848 million. 2021 net profit of the Bank
was TRY 180 million.
On and off-balance sheet foreign currency balances are managed concurrently. While loans, cash
and balances with the Central Bank and government bonds comprise the majority of the Bank’s
assets, the majority of its liabilities are deposits, funds borrowed and equity. The Bank’s liquidity and
interest risk are managed diligently by taking into account its capital and the funding limit set by
Deutsche Bank AG. The Bank’s parent company, Deutsche Bank AG, undertakes that it will fulfill the
contracted responsibilities of Deutsche Bank A.Ş. based on its declaration which was approved at
the General Assembly and published in its annual report.
Deutsche Bank A.Ş.
Annual Report 2022
Risk Management Policies
General Policies
Deutsche Bank A.Ş. maintains Turkish Lira within the limits set denominated Treasury Bills and
Government Bonds portfolio for trading purposes but is not engaged in equity/stock trading. The
bank applies different limits for cash loans for letters of guarantee and credit and syndication loans.
Deutsche Bank A.Ş. also has country and sector concentration limits. The bank does not engage in
interbank money market transactions with a maturity exceeding three months.
Foreign currency transactions with banks and the other corporations are conducted on “delivery
versus payment” basis; banks and corporations with a settlement limit are exceptions to this rule. The
bank has an approval procedure for the new products and business lines. Insurance transactions
regarding operational risk are coordinated with Deukona. Matters regarding reputational risk are
discussed and resolved in the Executive Council. Business Continuity and Disaster Recovery Plan is
regularly reviewed and tested.
Compliance with the relevant policies and limits are checked daily. All kinds of breaches are reported
to the senior management, relevant units and to the Board.
Risk Management
Risk Management is working as an independent unit responsible from operation and credit risk types.
It applies the policies defining the precautions regarding monitoring, managing and administering
and reporting the risks determined under the Regulation on the Internal Systems and ICAAP of the
Banks. Function of the Risk Management Unit is to ensure that all risks that the Bank is exposed to
are defined, measured, monitored, controlled and reported in a consolidated and unconsolidated
manner by means of the policies, procedures and limits specified to monitor, supervise and control,
and if necessary, change the risk return structure contained by the future cash flows of the Bank, and
accordingly the characteristics and level of the operations of the Bank. The basic risks that should be
preliminarily assessed by our Bank are defined herein below:
Market Risk
Market risk is the possibility to incur a loss arising from Bank’s general market risk, exchange rate risk
(potential losses that may be incurred by the Bank as a result of changes in exchange rates due to all
of its foreign currency assets and liabilities), interest rate risk (potential losses that may be incurred
by the Bank as a result of the movements in interest rates due to its positions regarding financial
instruments), swap risk (potential losses that may be incurred by the Bank due to price fluctuations
of securities, foreign exchanges or merchandise subject to transactions as a result of failure to realize
a swap transaction on its due date in case of transactions which cover delivery of securities, foreign
exchanges or merchandise on the basis of prices on a certain due date and foresee that both parties
meet their obligations on such due dates) and counterparty credit risk in trading accounts. Market
Risk Management also includes liquidity risk (the risk of Bank’s failing to fulfil its responsibilities on
Deutsche Bank A.Ş.
Annual Report 2022
time due to the fact that it does not have cash stock or flow that is sufficient to meet the cash outflow
totally or on time as a result of an imbalance in the cash flow) management.
Board of Directors is the ultimate owner of managing market risk within DB A.Ş. Liquidity risk and
interest rate risk arising from banking accounts are managed by the Treasury Unit; whereas interest
rate risk arising from trading accounts is managed by Fixed Income and Currencies Unit.
Credit Risk
Credit risk is defined as the condition our Bank is in and the potential loss it may incur if and when a
customer of our Bank or a counterparty that our Bank is in a business relationship fails to partially or
totally fulfil its obligations arising from a contract it signed with the Bank on time. All processes
pertaining to credit allocation by the Bank in favour of real persons or legal entities directly or
indirectly, utilization, monitoring and operation of the said credit are regarded under the credit risk
management. The principal amount of credit risk is the sum of the credit risk amounts regarding on-
balance sheet assets, non-cash credits, liabilities and derivative financial instruments. It further
includes Credit Risk, Counterparty credit risk management, Concentration risk management and
Country risk management.
Before accepting credit risk, fundamental principle underlying the credit risk management is
examining the client. Choosing clients in a prudent manner in accordance with the principle of “Know
Your Client” is achieved through co-operation with business units working as the first line of defence
of the Bank. New risk acceptance always requires approved plans for finalization of the risk position
taken in accordance with the applicable rules. In spite of the fact that collaterals or other risk
mitigating tools serve as alternative sources for repayment, they may not be used as substitutes to
high quality credit approval standards or assessment of counterparty’s ability to repay their debts in
a comprehensive manner. Main aim of the Bank is to avoid excessive concentration, to establish a
diversified and marketable credit portfolio in an attempt to minimize large scale risks and thus to
protect Bank’s capital under all market conditions. To achieve this, concentrations are assessed and
managed taking Bank’s risk appetite into account.
Operational Risk
Operational risk is the possibility to incur a loss arising from insufficient or ineffective internal
processes, failures related to employees and systems or external sources, and it includes legal risk.
Aim of the Operational Risk Management is to early detect/foresee the possible operational risks that
the Bank may be exposed to and to protect the Bank from any possible losses that it may incur as a
result of operational risks, to establish and ensure operation of the necessary mechanisms needed
for efficient management of operational risks that may pose a delay or obstacle to achieving Deutsche
Bank A.Ş.’s aims, and to decrease the possibility of being exposed to operational risk and, thereby,
to participate into creation of a stronger capital base.
In order to manage operational risk in a transparent manner, responsibilities and duties related to
operational risk management are clearly defined. Problems related to operational risk are escalated
Deutsche Bank A.Ş.
Annual Report 2022
to the relevant authorities on time. Units are responsible from undertaking the financial impact
associated with the operational risk incidents and costs arising from management, mitigation,
transferring and acceptance of the same.
Risks breaching the applicable legislation or regulations are not accepted; these risks must always be
mitigated once they are detected.
Credit Ratings
Deutsche Bank A.Ş. is not rated by rating agencies.
As of December 31, 2022, international rating agencies had attached the following ratings to the
Bank’s parent company, Deutsche Bank AG:
Short-term Long-term Individual
Rating Rating Outlook Rating
Moody’s Investors Service P - 1 A1 Stable A1
Standard & Poor’s A - 2 A- Stable bbb
Fitch Ratings F2 A Positive bbb+
Deutsche Bank A.Ş.
Annual Report 2022
Summary of Five - Year Financial Highlights
Assets (TRY 000) 2022 2021 2020 2019 2018
Cash and Balances with the Central Bank 3,045,975 1,753,634 819,000 570,547 332,283
Financial Assets at Fair Value Through Profit/Loss 2,427,140 6,234 1 881 362,073
Deriv ativ e Financial Assets 478,043 167,092 29,646 2,732 38,727
Banks 8,830 126,901 106,103 727,306 684,316
Receiv ables from Money Markets - 110,008 709,911 49,988 -
Financial Assets at Fair Value Through Other Comprehensiv e Income - 290,526 92,168 242,293 -
Loans (Net) 3,914,826 2,891,001 2,364,122 1,041,363 1,138,888
Equity Inv estments - - - - -
Tangible Assets (Net) 67,487 50,341 33,909 24,510 4,805
Intangible Assets (Net) 12,224 4,436 4,178 4,707 3,976
Tax Assets - 7,656 5,784 3,098 3,960
Other Assets 1,451,698 498,524 241,760 74,339 93,304
Total Assets 11,406,223 5,906,353 4,406,582 2,741,764 2,662,332
Liabilities (TRY 000) 2022 2021 2020 2019 2018
Deposits 2,188,686 1,489,530 1,685,818 1,532,869 965,156
Deriv ativ e Financial Liabilities 268,264 175,370 40,210 3,024 45,176
Money Market Funds 160,304 30,448 - - -
Loans Receiv ed 5,897,204 2,994,291 1,739,364 379,084 1,004,274
Securities Issued (Net) - - - - -
Funds - - - - -
Other Liabilities 586,618 61,957 33,621 15,151 8,965
Factoring Liabilities - - - - -
Lease Liabilities 18,250 15,331 18,761 21,329 -
Prov isions and Tax Liability 467,381 153,035 71,301 49,682 50,027
Subordinated Debt Instruments - - - - -
Shareholders’ Equity 1,819,516 986,391 817,507 740,625 588,734
Total Equity and Liabilities 11,406,223 5,906,353 4,406,582 2,741,764 2,662,332
Statement of Profit or Loss (TRY 000) 2022 2021 2020 2019 2018
Interest Income 1,093,216 499,069 228,392 351,429 431,808
Interest Expense 258,350 178,514 76,297 76,487 28,584
Net Interest Income/(Expense) 834,866 320,555 152,095 274,942 403,224
Net Fees and Commissions Income/(Expense) 65,592 67,210 60,086 52,588 47,479
Trading Profit/Loss (Net) 652,842 85,463 28,140 -24,161 -183,492
Other Operating Income 24,931 8,924 22,756 16,793 18,571
Gross Profit From Operating Activ ities 1,578,231 482,152 263,077 320,162 285,782
Allowances for Expected Credit Losses (-) 7,274 1,114 2,690 1,630 862
Other Operating Expenses (-) 439,917 239,761 151,713 132,125 128,358
Net Operating Profit/(Loss) 1,131,040 241,277 108,674 186,407 156,562
Net Monetary Position Gain/(Loss) - - - - -
Profit/(Loss) Before Taxes From 1,131,040 241,277 108,674 186,407 156,562
Continuing Operations
Prov ision for Taxes on Income From Continuing Operations (-) 282,923 60,328 23,695 40,865 34,072
Net Profit/(Loss) From Continuing Operations 848,117 180,949 84,979 145,542 122,490
Net Profit/(Loss) From Discontinued Operations - - - - -
Net Profit/(Loss) 848,117 180,949 84,979 145,542 122,490
Debt/Equity Ratio (%) 501.20 483.27 430.31 263.49 343.72
E
V
Güney
Bağımsız
Denetim
ve
SMMM
AŞ.
Tel:
—90
212
315
3000
Maslak
Mahallesi,
Eski
Büyüldere
Cad.
Fax:
.90
212
230
0291
Orjın
Maslak
iş
Merkezi
Na:
27
D:
57
ey.com
34455
Sarıyer
-
Istanbul
/
Türkiye
Ticaret
Sicil
Na:
479920
Boğazlçl
Kurumlar
-
435
030
3260
Mersis
Na:
0-4350-3032-6000037
Building
a
better
working
world
(Convenience
translation
of
a
report
originally
issued
in
Turkish)
INDEPENDENT
AUDITOR’S
REPORT
ON
THE
ANNUAL
REPORT
OF
THE
BOARD
OF
DIRECTORS
To
the
Shareholders
of
Deutsche
Bank
A.Ş.
1)
Opinion
We
have
audited
the
annual
report
of
Deutsche
Bank
A.Ş.
(the
Bank”)
for
the
period
of
1
January
2022-
31
December
2022.
in
our
opinion,
the
unconsolidated
financial
information
provided
in
the
annual
report
of
the
Board
of
Directors
and
the
discussions
made
by
the
Board
of
Directors
on
the
situation
of
the
Bank
are
presented
fairiy
and
consistent,
in
ali
material
respects,
with
the
audited
fuli
set
unconsolidated
financial
statements
and
the
information
we
obtained
during
the
audit.
2>
Basis
for
Opinion
We
conducted
our
audit
in
accordance
with
“Regulation
on
independent
audit
of
the
Banks”
published
in
the
Officiai
Gazette
no.29314
dated
2
April
2015
published
by
BRSA
(BRSA
Independent
Audit
Regulation)
and
lndependent
Auditing
Standards
<mAS)
which
are
part
of
the
Turkish
Auditing
Standards
as
issued
by
the
Pubiic
Oversight
Accounting
and
Auditing
Standards
Authority
of
Turkey
(POA).
Our
responsibilities
under
those
standards
am
ftirther
described
in
the
Auditor’s
Responsibilities
for
the
Audit
of
the
Annual
Report
section
of
our
report.
We
are
independent
of
the
Bank
in
accordance
with
the
Code
of
Ethics
for
Independent
Auditors
(Code
of
Ethics)
as
issued
by
the
POA,
and
we
have
fulflhled
our
other
ethical
responsibiiities
in
accordance
with
the
Code
of
Ethics.
We
believe
that
the
audit
evidence
we
have
obtained
is
sufticient
and
appropriate
to
provide
a
basis
for
our
opinion.
3)
Our
Auditor’s
Opinion
on
the
FulI
Set
Unconsolidated
Financiai
Statements
We
have
expressed
unqualified
opinion
in
our
auditor’s
report
dated
10
March
2023
on
the
fuli
set
unconsolidated
financial
statements
of
the
Bank
for
the
period
of
1
January
2022-31
December
2022.
4)
The
Responsibility
of
the
Board
of
Directors
on
the
Annual
Report
in
accordance
with
Articles
514
and
516
of
the
Turkish
Commercial
Code
6102
(“TCC”)
and
communique
on
‘Principles
and
procedures
set
out
by
the
regulations
on
preparation
and
issuance
of
annual
reports
of
Banks’,
the
management
of
the
Bank
is
responsible
for
the
following
items:
a)
Preparation
of
the
annual
report
within
the
first
three
months
following
the
balance
sheet
date
and
submission
of
the
annual
report
to
the
general
assembiy.
b)
Preparation
and
fair
presentation
of
the
annual
report;
reflecting
the
operations
of
the
Bank
for
the
year,
along
with
its
financial
position
in
a
correct.
complete,
straightforward,
true
and
honest
manner.
in
this
report!
the
financial
position
is
assessed
according
to
the
unconsolidated
financial
statements.
The
development
of
the
Bank
and
the
potential
risks
to
be
encountered
are
also
noted
in
the
report.
The
evaluation
of
the
Board
of
Directors
is
also
included
in
this
report.
(1)
A
member
fsn
of
Emst
t
Young
Global
Umed
EY
Buliding
a
better
working
world
c)
The
annual
report
alsa
includes
the
matters
belaw:
-
Subsequent
events
accurred
after
the
end
af
the
fiscal
year
whiah
have
significance,
-
The
researoh
and
development
activities
af
the
Bank,
-
Financial
benefits such
as
salaries
and
banuses
paid
to
the
baard
members
and
ta
thase
charged
gavernance,
allowances,
travel!
accammodation
and
representation
expenses,
financial
aids and
aids
in
kind,
insurances
and
similar
depasits.
-
Other
matters
prescribed
in
the
cammunique
an
‘Principles
and
pracedures
set
aut
by
the
regulations
an
preparation and
issuance
of
annual
reparts
of
Banks’
published
in
afficial
gazette
no.26333
dated Navember
1,2006.
When
preparing
the
annual
repart,
the
baard
af
directors
takes
inta
account
the
secondary
legislative
arrangements
published
by
the
Ministry
of
Trade
and
related
institutions.
5)
Auditor’s
Responsibilities
for
the
Audit
of
the
Annual
Report
Our
aim
is
ta
express
an
opinian,
based
an the
independent
audit
we
have
performed
on
the
annual
report
in
accardance
with
provisians
af
the
Turkish
Cammercial
Code
and
the Cammunique
on
‘Principles and
procedures
set
aut
by
the
regulations
on
preparation
and
issuance
of
annual
reports
of
Banks’
published
in
otficial
gazette
no.26333
dated
November
1,
2006,
Banking
Regulatian
and
Supervision
Agency
(“BRSA’)
Accounting
and
Financial
Reporting Legislation
which
includes
“Regulatian
an Accaunting Applicatians
far
Banks
and Safeguarding
af
Documents” published
in
the
Offıcial
Gazette
no.26333
dated
1
November
2006,
and
ather
regulatians
an
accaunting
recards
of
Banks
published
by
Banking
Regulatian and
Supervisian
Agency
and
circulars and
interpretations
published
by
BRSA
and
Turkish
Financial
Reparting
Standards
(“TFRS”)
for
those
matters
not
regulated
by
the
afarementioned
regulatians,
an
whether
the
uncansolidated
fınancial
information provided
in
this
annual
report
and
the
discussions
af
the
Board
of
Directars
are
presented
fairly
and
cansistent
with
the
Bank’s
audited
uncansalidated
financial
statements
and
to
prepare
a
report
including
our
apinion.
The
independent
audit
we
have
perfarmed
is
conducted
in
accardance
with
InAS
and
BRSA
lndependent
Audit
Regulation.
These
standards
require
compliance
with
ethical pravisions
and
the
independent
audit
to
be
planned
and
performed
to
abtain
reasonable
assurance
on
whether
the
unconsolidated
financial
infarmation
provided
in
the
annual
report
and
the
discussians
of
the
Board
of
Directors
are
free
fram
material
misstatement
and
consistent
with
the
unconsolidated
financial
statements.
The
name
af
the
engagement
partner
who
supervised
and
cancluded
this
audit
is
Emre
Çelik.
Güney
Bağımsız
Denetim
ve
Serbest
Muhasebeci
Mali
Müşavirlik
Anonim
Şirketi
A
member
flrm
of
Ernst
8
Yaung
Global
Limited
ELLUü
Emre
Çelik,
SMMM
Partner
29
March
2023
Istanbul,
Türkiye
A
member
timi
ot
Ernst
8
Young
Gıobaı
Unflted
(Convenience Translation of Financial Statements and Related
Disclosures and Footnotes Originally Issued in Turkish)
DEUTSCHE BANK A.Ş.
INDEPENDENT AUDITOR’S REPORT,
UNCONSOLIDATED FINANCIAL STATEMENTS AND
NOTES FOR THE YEAR ENDED 31 DECEMBER 2022
Güney Bağımsız Denetim ve SMMM A.Ş.
Maslak Mah. Eski Büyükdere Cad.
Orjin Maslak İş Merkezi No: 27
Daire: 57 34485 Sarıyer
İstanbul - Türkiye
Tel: +90 212 315 3000
Fax: +90 212 230 8291
ey.com
Ticaret Sicil No : 479920
Mersis No: 0-4350-3032-6000017
(Convenience Translation of the Auditor’s Audit Report Originally Issued in Turkish)
INDEPENDENT AUDITOR’S REPORT
To the General Assembly of Deutsche Bank Anonim Şirketi:
A) Audit of Unconsolidated Financial Statements
1) Opinion
We have audited the accompanying unconsolidated financial statements of Deutsche Bank A.Ş (the “Bank”) which
comprise the statement of unconsolidated statement of financial position as at 31 December 2022, unconsolidated
statement of profit and loss and unconsolidated statement of profit or loss and other comprehensive income,
unconsolidated statement of changes in shareholders’ equity and unconsolidated statement of cash flows for the year
then ended and the notes to the unconsolidated financial statements including a summary of significant accounting
policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the unconsolidated
financial position of the Bank as at December 31, 2022 and financial performance and unconsolidated its cash flows
for the year then ended in accordance with the prevailing accounting principles and standards set out as in accordance
with “Regulation on Accounting Applications for Banks and Safeguarding of Documents” published in the Official
Gazette no.26333 dated 1 November 2006 and other regulations on accounting records of Banks published by Banking
Regulation and Supervision Agency (BRSA), circulars, interpretations published by BRSA and “BRSA Accounting
and Financial Reporting Legislation” which includes the provisions of Turkish Financial Reporting Standards (TFRS)
for the matters which are not regulated by these regulations.
2) Basis for Opinion
Our audit was conducted in accordance with “Regulation on independent audit of the Banks” published in the Official
Gazette no.29314 dated April 2, 2015 by BRSA (BRSA Independent Audit Regulation) and Independent Auditing
Standards (“ISA”) which are the part of Turkish Auditing Standards issued by the Public Oversight Accounting and
Auditing Standards Authority (“POA”). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the
Bank in accordance with of Code of Ethics for Independent Auditors (Code of Ethics) published by POA and have
fulfilled our other responsibilities in accordance with the code of ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
3) Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
unconsolidated financial statements of the current period. Key audit matters were addressed in the context of our audit
of the unconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key Audit Matter
How the Key Audit Matter is addressed in our audit
Financial impact of TFRS 9 “Financial
Instruments” standard and recognition of
impairment on financial assets and related
important disclosures
As disclosed in footnote VIII of Section 3; the Bank
measured expected credit losses for financial assets
by TFRS 9 “Financial Instruments Standards” in
financial statements. The rationale reasons for
selecting TFRS 9 implementation and impairment
of financial assets as key audit subject are as
follows;
▪ Financial assets within balance-sheet and off-
balance-sheet subject to TFRS 9 expected
credit losses measurement have significant
balance in the financial statements
▪ The applications TFRS 9 are complex and
comprehensive
▪ The classification of financial instruments
based on the Bank’s business models and the
characteristics of contractual cash flows in line
with TFRS 9 and requirement of important
judgments to determine this business model
and the characteristics of contractual cash
flows
▪ Risks related to the policies established by the
management with the compliance and
requirements of the legislation and other
applications for the calculation of expected
credit losses
▪ The complexity and intensity of the control
environment in the processes designed or
reorganized for TFRS 9
▪ Estimations and assumptions used in expected
credit losses are new, important and complex
▪ Complex and comprehensive disclosure
requirements of TFRS 9.
Our audit procedures in addition to our current audit procedures:
▪ Evaluation of the compliance of the accounting policies
adopted with regard to TFRS 9, the Bank's past performance,
and local and global practices
▪ Analysis and testing of processes, systems, and controls
originated or re-designed in order to calculate expected
credit losses by the Information Systems and Process Audit
specialists
▪ Evaluation of the key judgments, assumptions, methods
used for calculation of expected credit loss determined by
the management, and whether the data source is reasonable
or not, and their compliance and standard requirements in
light of industry and global practices
▪ Testing criteria used for determining the contractual cash
flows including interest payments with regard to solely
principal and principal balance of financial assets on a
sample basis and evaluation of Bank's business model
▪ Evaluation of significant increase in credit risk, definition of
default, definition of restructuring, probability of default,
loss given default, exposure at default and macro-economic
variables, and related basic and significant estimates and
assumptions determined for calculation process of expected
credit loss and whether these assumptions determined by
financial risk management are in line with the Bank’s
historical performance, legislation, and reasonableness of
the estimation process regarding future performance and
investigation of credit risk portfolio on a sample basis
▪ Evaluation of the accuracy and completeness of attributes of
the data used for the calculation process of expected credit
losses
▪ Detailed testing of mathematical verification of expected
credit losses’ calculation on a sample basis
▪ Evaluating the necessity and accuracy of the updates made
or required updates after the modeling process
▪ Auditing of disclosures related to TFRS 9.
4) Responsibilities of Management and Those Charged with Governance for the Unconsolidated Financial
Statements
Bank management is responsible for the preparation and fair presentation of the unconsolidated financial statements in
accordance with the BRSA Accounting and Reporting Legislation and for such internal control as management
determines is necessary to enable the preparation of the financial statement that is free from material misstatement,
whether due to fraud or error.
In preparing the unconsolidated financial statements, management is responsible for assessing the Bank’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing the Bank’s financial reporting process.
5) Auditor’s Responsibilities for the Audit of the Unconsolidated Financial Statements
In an independent audit, the responsibilities of us as independent auditors are:
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
BRSA Independent Audit Regulation and ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with BRSA Independent Audit Regulation and ISAs, we exercise professional
judgement and maintain professional skepticism throughout the audit. We also:
▪ Identify and assess the risks of material misstatement of the unconsolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. (The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.)
▪ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s
internal control.
▪ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
▪ Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the unconsolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to continue as
a going concern.
▪ Evaluate the overall presentation, structure and content of the unconsolidated financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with the governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the unconsolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
B) Report on Other Legal and Regulatory Requirements
1) In accordance with Article 402 paragraph 4 of the Turkish Commercial Code (“TCC”) no 6102; no significant
matter has come to our attention that causes us to believe that the Bank’s bookkeeping activities and financial
statements for the period January 1 – December 31, 2022 are not in compliance with the TCC and provisions of the
Bank’s articles of association in relation to financial reporting.
2) In accordance with Article 402 paragraph 4 of the TCC; the Board of Directors submitted to us the necessary
explanations and provided required documents within the context of audit.
The engagement partner who supervised and concluded this independent auditor’s report is Emre Çelik.
Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi
A member firm of Ernst & Young Global Limited
Emre Çelik, SMMM
Partner
March 10, 2022
İstanbul, Türkiye
THE
UNCONSOLIDATED FINANCİAL
REPORT
OF
DEUTSCHE
BANK
A.Ş.
AS
OF
31
DECEMHER
2022
Bank’s
Head
Offıce
Address
Bank’s
Telephone
and
Fax
Numbers
Bank’s
Web
Address
Esentepe Mahallesi, Büyükdere Caddesi
Ferko
Signature
No.
1751149,
Şişli
34394-ISTANBUL
:(02l2)3170I
00
(0212)3170105
www.db.com.tr
E-mail
address
tr.muhaberaua’db.com
The
Deutsche
Bank
A.Ş.’s fınancial
report prepared
in
accordance
with
the
communiqu
of
Related
Disclosures
and
Footnotes
to
be
announced
to
Public
by
Banks
as
regulated
by
Supervision
Agency,
is
comprised
of
the
following
sections.
1.
GENERAL INFORMATION ABOUT THE
BANK
2.
UNCONSOLiDATED
FINANCIAL STATEMENTS
OF
THE
BANK
3.
EXPLANATIONS
ON
THE
CORRESPONDING
ACCOUNTING
POLICIES
PERIOD
4.
INFORMATION
RELATED
TO
FINANCIAL
POSITION
OF
Tl-lE
BANK
5.
EXPLANATIONS
AND
NOTES
RELATED
TO
UNCONSOLIDATED
FINANCIAL STATEMENTS
6.
OTHER
EXPLANATIONS
AND
NOTES
7.
INDEPENDENT
AUDITORS’ REPORT
The
unconsolidated
year
end
fınancial
statements
and
related
disclosures
and
footnotes
that
vere
subject
to
independent
audit,
are
prepared
in
accordanee
with
the
Regulation
on
Accounting Applieations
for
Banks and
Safeguardin4f
Documents, Turkish
Accounting
Standards, Turkish
Financial
Reporting
Standards
and
the
related
staternentsj/d
guidances
and
in
compliance
with
the
fınancial
records
of
our
Bank.
Untess
stated
otherwise
the
accornpany/g
fınancial
statements
are
presented
in
tbnusands
of
Turkislı
Lira
(‘EL).
Frank
1-
it
/
Hamit
Sedat
Kr
gs
/
Eratalar
Özalp
Information
related
with
the
personnel authorised
to
answer
the
questions
regarding
this
fınancial report
Name-Surname/
Title:
Salih
Görgülü!
Finance
Manager
Financial
Statemenıs
and
Banking Regulation
and
APPLIED
IN
THE RELATED
Chairman
of
Board
of
Directors
and
Meınber
of
Audit
Committee
Chairman
of
Audit
Committee
General
Manager
Board
Member
Responsible
from
F
in
an
c
i
al
Reporting
Finance
Director
TelNoIFaxNo:(0212)3170184/(02l2)3170105
SECTION ONE
GENERAL INFORMATION ABOUT THE BANK PAGE
I. History of the Bank including its incorporation date, initial legal status, amendments to legal status .................................................... 1
II. Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change shareholder structure
during the year and information’s on Bank’s risk group ........................................................................................................................ 1
III Information’s on the Bank’s board of directors’ chairman and members, audit committee members, general manager, assistant
general managers, change in top management and their shareholdings in the Bank ............................................................................... 2
IV. Information on the Bank’s qualified shareholders .................................................................................................................................. 3
V. Summary information on the Bank’s activities and services .................................................................................................................. 3
SECTION TWO
UNCONSOLIDATED FINANCIAL STATEMENTS
I. Balance sheet (Statement of financial position) ..................................................................................................................................... 4
II. Off-balance sheet items .......................................................................................................................................................................... 6
III. Statement of profit or loss ...................................................................................................................................................................... 7
IV. Statement of profit or loss and other comprehensive income ................................................................................................................. 8
V. Statement of changes in equity …........................................................................................................................................................... 9
VI. Statement of cash flows ......................................................................................................................................................................... 10
VII. Statement of profit distribution .............................................................................................................................................................. 11
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
I. Basis of presentation .............................................................................................................................................................................. 12
II. Basis of presentation of financial statements……………………………………………….. .................................................................... 13
III. Explanations on strategy of using financial instruments and foreign currency transactions ................................................................... 13
IV. Forward, options and other derivative transactions ................................................................................................................................ 14
V. Explanations on interest income and expenses ....................................................................................................................................... 14
VI. Explanations on fee and commission income and expense .................................................................................................................... 14
VII. Explanations on financial assets ............................................................................................................................................................. 15-17
VIII. Explanations on expected credit losses .................................................................................................................................................. 17-18
IX. Explanations on offsetting financial instruments .................................................................................................................................... 18
X. Explanations on sales and repurchase agreements and securities lending transactions ........................................................................... 18
XI. Explanations on assets held for resale and discontinued operations……………………………………………………………………. 19
XII. Explanations on goodwill and other intangible assets ............................................................................................................................ 19
XIII. Explanations on tangible assets .............................................................................................................................................................. 20
XIV Explanations on leasing transactions ...................................................................................................................................................... 20-21
XV. Explanations on provisions and contingent commitments ...................................................................................................................... 22
XVI. Explanations on contingent assets .......................................................................................................................................................... 22
XVII. Explanations on obligations related to employee rights ......................................................................................................................... 22
XVIII. Explanations on taxation ........................................................................................................................................................................ 23-24
XIX. Explanations on borrowings ................................................................................................................................................................... 24
XX. Explanations on issuance of share certificates ........................................................................................................................................ 24
XXI. Explanations on avalized drafts and acceptances ................................................................................................................................... 24
XXII. Explanations on government grants ....................................................................................................................................................... 25
XXIII. Explanations on segment reporting ........................................................................................................................................................ 25
XXIV. Other disclosures .................................................................................................................................................................................... 25
XXV. Reclassifications .................................................................................................................................................................................... 25
SECTION FOUR
INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT OF THE BANK
I. Explanations on equity ........................................................................................................................................................................... 26-29
II Explanations on credit risk ..................................................................................................................................................................... 30-38
III. Explanations on currency risk ................................................................................................................................................................ 39-40
IV. Explanations on interest rate risk ........................................................................................................................................................... 41-43
V. Explanation on the position risk of securities ......................................................................................................................................... 44
VI. Explanations on liquidity risk management and liquidity coverage ratio ............................................................................................... 44-51
VII. Explanations on leverage ratio........................................................................................................................................... ....................... 52
VIII. Explanation regarding the presentation of financial assets and liabilities at their fair values ................................................................ 53-54
IX. Explanation regarding the activities carried out on behalf and account of other parties based on trust .................................................. 55
X. Explanations on risk management .......................................................................................................................................................... 56-75
XI. Explanations on operating segments ...................................................................................................................................................... 76
SECTION FIVE
EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS
I. Explanations and notes related to assets ................................................................................................................................................. 77-84
II. Explanations and notes related to liabilities ........................................................................................................................................... 85-91
III. Explanations and notes related to off-balance sheet accounts ................................................................................................................ 92-95
IV. Explanations and notes related to income statement .............................................................................................................................. 96-103
V. Explanations and notes related to changes in shareholders’ equity ........................................................................................................ 104
VI. Explanations and notes related to statement of cash flows .................................................................................................................... 105
VII. Explanations and notes related to Bank’s risk group .............................................................................................................................. 106-109
VIII. Explanations and notes related to domestic, foreign off-shore branches and foreign representatives of the Bank ................................. 110
IX. Explanations and notes related to subsequent events............................................................................................................. ................... 111
SECTION SIX
OTHER EXPLANATIONS
I. Other explanations related to the Bank’s operations. ............................................................................................................................. 112
SECTION SEVEN
EXPLANATIONS ON AUDITORS’ REPORT
I Explanations on independent auditors’ report ........................................................................................................................................ 113
II. Explanations and notes prepared by independent auditors .................................................................................................................... 113
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
1
SECTION ONE
GENERAL INFORMATION ABOUT THE BANK
I. History of the Bank including its incorporation date, initial legal status, amendments to legal status
Deutsche Bank Anonim Şirketi (“the Bank”) was established with Council of Ministers Permit No. 87/12432,
dated 16 December 1987. This permit was published in the Official Gazette dated 26 December 1987 and it was
registered on 4 April 1988. The “Articles of Association” of the Bank were published in the Trade Registry
Gazette on 7 April 1988. The commercial title of the Bank upon its establishment was “Türk Merchant Bank
A.Ş.” which was changed to “Bankers Trust A.Ş.” on 17 April 1997. After the global merger of Bankers Trust
and Deutsche Bank, the Bank’s commercial title has been changed to “Deutsche Bank Anonim Şirketi” at 1
March 2000. The Bank obtained the permission to accept deposits with the article numbered 1381 and dated 8
September 2004 of Banking Regulatory and Supervisory Agency (“BRSA”). This permission became valid after
it was published in Official Gazette No. 25614 dated 15 October 2004. The Bank’s head office is located in
Istanbul and has no branches.
Based on the decision taken at General Assembly Meeting of the Deutsche Bank Anonim Şirketi held on 28
March 2013, the Articles of Association has been amended in compliance with the Turkish Commercial Code
(“TCC”) No. 6102. Accordingly, the “Articles of Association” of the Bank was updated and simplified in
accordance with TCC no. 6102. The updated Articles of Association came into effect after being published in
Trade Registery Gazette No. 8304 dated 19 April 2013.
II. Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change
in shareholder structure during the year and information on Bank’s risk group
As of 31 December 2022 and 31 December 2021, the Bank’s paid-in capital is comprised of 1.350.000.000
shares whose historical nominal unit values are TL 0,1. The Bank is one of the group companies of Deutsche
Bank Group and 99,99% of the Bank’s capital is owned by Deutsche Bank AG.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
2
GENERAL INFORMATION ABOUT THE BANK (continued)
III. Information on the Bank’s board of directors’ chairman and members, audit committee members,
general manager, assistant general managers, change in top management and their shareholdings in
the Bank
Title
Name Surname
Responsibilities
Appointment Date
Education
Experience in
Banking and
Business
Administration
Chairman and
Member of Audit
Committee
Frank Helmut Krings
28 March 2019
Undergraduate: Braunschweig Technical
University Electrical Engineering
26 years
Board Member
and General
Manager
Abidin Orhan Özalp
14 January 2019
Undergraduate: Koc University Faculty of
Economics and Administrative Sciences,
Economy and Business double major
16 years
Vice President of
Board
Jorge Andres Otero Letelıer
15 March 2017
Undergraduate: Chile Santiago University
Bachelor of Arts-Finance
Master: MBA-Newyork University
29 years
Claire Coustar
23 February 2018
Undergraduate: Babson College-Business
Administration
28 years
Board Members
Özge Kutay
Financial Reporting
and Support
Functions
18 October 2012
Undergraduate: İstanbul University
Faculty of Economics and Administrative
Sciences
29 years
Member of Board
and Audit
Committee
Salah Mohd I Al-Jaidah
H. Sedat Eratalar
14 May 2019
2 August 2001
Undergraduate: Texas Christian
University Faculty of Economics,
Business Administration
Undergraduate: Ankara University Faculty
of Economics and Finance
35 years
42 years
Mark Michael Bailham
Kornelis Jan Hoving (*)
13 August 2020
8 September 2022
Undergraduate: University College
London Economics
Undergraduate: Nyenrode University
Business
Master: Erasmus University - Economics
38 years
26 years
The above-mentioned Chairman, Deputy Chairman and members of the Board of Directors and the General Manager do not own any shares in the Bank.
Changes occurred for the period ended 31 December 2022:
Title
Outgoing within the period
Assignments during the period
Member of Board and
Audit Committee (*)
Micheal Christoph Maria Dietz
Kornelis Jan Hoving
(*) At the Board of Directors meeting held on September 8, 2022, the resignation of Michael Christoph Maria Dietz, who served as a
Member of the Board of Directors, was accepted and Kornelis Jan Hoving was appointed as a Member of the Board of Directors. At
the Board of Directors meeting held on September 27, 2022, Kornelis Jan Hoving was appointed as a Member of the Audit
Committee.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
3
GENERAL INFORMATION ABOUT THE BANK (continued)
IV. Information on the Bank’s qualified shareholders
The Bank’s qualified shareholder, which has direct or indirect control power, due to the definition of qualified
portion on Banking Act No. 5411 and regarding to Article 13
th
of Communiqué on Transactions Subject to
Bank’s Permission and Indirect Portion Ownership, is shown below:
Name Surname
Commercial Title
Share
Amounts
Share
Ratios
Paid
Shares
Unpaid
Shares
Deutsche Bank AG
134,999
99.99
134,999
-
Other
1
0.01
1
-
Total
135,000
100
135,000
-
V. Summary information on the Bank’s activities and services
Activities of the Bank as stated in its articles of association are as follows:
• All banking operations;
• Jointly establishing enterprises with the corporations or individuals, joint ventures, investing to the
existing or newly established commercial and industrial institutions, banks and financial institutions and
transferring the shares of those enterprises;
• Providing commercial and insurance activities on behalf of the Bank or the domestic and foreign
institutions, acting as agencies, and providing commitments to public and non-public entities in
compliance and not restricted with the regulations set by the Banking Law and the related legislations;
• Purchasing and selling marketable securities on behalf of the Bank or third parties, issuing debt securities
by taking the necessary permissions in accordance with the related legislation, establishing and
managing investment funds and performing other capital market transactions, which are allowed by the
Banking Law and operating in stock exchange;
• Performing factoring and forfaiting;
• Performing any transactions in foreign currency markets including derivative transactions on behalf of
the Bank or its’ customers;
• Performing equipment leasing and real estate financing by way of leasing the extent permitted by
legislation;
• Acquiring intangible assets related with the Bank’s operations and making savings on them;
The Bank, which has been providing investment banking services since its establishment date, has obtained
the permission to accept deposits from BRSA Decision No. 1381 dated 8 September 2004, as a result of the
Bank’s growth and investment policies in Turkey. This permission became into force after it was published in
Official Gazette No. 25614 dated 15 October 2004.
Under the Capital Markets Board Authorization Certificate, the Bank was allowed to perform the following
activities and services as of 5 November 2015:
• Brokerage services
• Limited Custody Service
• General Custody Service
The main operations of the Bank are, Interbank Money Market transactions, purchasing and selling marketable
securities, foreign currency transactions, corporate cash loan, providing collateralised non-cash loans related
with commercial activities and custody services. After obtaining commercial banking licence, in addition to
the Bank’s current operations like commercial banking and money market transactions, the Bank became
structured to meet all of the needs of its’ customers by providing services such as accepting deposits, opening
individual accounts and selling cash management products and services, accordingly.
As of 31 December 2022, the number of employees of the Bank is 122 (31 December 2021: 114).
SECTION TWO
FINANCIAL STATEMENTS
2.1 Balance Sheet (Statement of Financial Position)
2.2 Off-balance Sheet Items
2.3 Statement of Profit or Loss
2.4 Statement of Profit or Loss and Other Comprehensive Income
2.5 Statement of Changes in Equity
2.6 Statement of Cash Flows
2.7 Statement of Profit Distribution
DEUTSCHE BANK ANONİM ŞİRKETİ
BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
4
I. BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
Audited
Audited
Current
period
Prior
period
31 December 2022
31 December 2021
ASSETS
Note
(5 - I)
TL
FC
Total
TL
FC
Total
I.
FINANCIAL ASSETS (Net)
2,809,336
3,150,652
5,959,988
697,702
1,756,693
2,454,395
1.1
Cash and Cash Equivalents
382,196
2,672,609
3,054,805
400,942
1,589,601
1,990,543
1.1.1
Cash and Balances with Central Bank
(1)
382,013
2,669,826
3,051,839
210,866
1,543,743
1,754,609
1.1.2
Banks
(3)
919
7,914
8,833
80,229
46,720
126,949
1.1.3
Money Market Placements
-
-
-
110,041
-
110,041
1.1.4
Expected Credit Losses (-)
736
5,131
5,867
194
862
1,056
1.2
Financial Assets Measured at Fair Value through Profit/Loss (FVTPL)
(2)
2,427,140
-
2,427,140
6,234
-
6,234
1.2.1
Government Securities
2,427,140
-
2,427,140
6,234
-
6,234
1.2.2
Equity Securities
-
-
-
-
-
-
1.2.3
Other Financial Assets
-
-
-
-
-
-
1.3
Financial Assets Measured at Fair Value through Other Comprehensive
Income (FVOCI)
(4)
-
-
-
290,526
-
290,526
1.3.1
Government Securities
-
-
-
290,526
-
290,526
1.3.2
Equity Securities
-
-
-
-
-
-
1.3.3
Other Financial Assets
-
-
-
-
-
-
1.4
Derivative Financial Assets
(2)
-
478,043
478,043
-
167,092
167,092
1.4.1
Derivative Financial Assets Measured at FVTPL
-
478,043
478,043
-
167,092
167,092
1.4.2
Derivative Financial Assets Measured at FVOCI
-
-
-
-
-
-
II.
FINANCIAL ASSETS MEASURED AT AMORTIZED COST
2,703,233
1,211,593
3,914,826
1,832,040
1,058,961
2,891,001
2.1
Loans
(5)
2,703,819
1,211,713
3,915,532
1,832,505
1,059,070
2,891,575
2.2
Lease Receivables
(10)
-
-
-
-
-
-
2.3
Factoring Receivables
-
-
-
-
-
-
2.4
Other Financial Assets Measured at Amortised Cost
(6)
-
-
-
-
-
-
2.4.1
Government Securities
-
-
-
-
-
-
2.4.2
Other Financial Assets
-
-
-
-
-
-
2.5
Expected Credit Losses (-)
586
120
706
465
109
574
III.
ASSETS HELD FOR SALE AND ASSETS OF DISCONTINUED
OPERATIONS (Net)
(16)
3.1
Asset Held for Resale
-
-
-
-
-
-
3.2
Assets of Discontinued Operations
-
-
-
-
-
-
IV.
INVESTMENTS IN ASSOCIATES,SUBSIDIARIES AND JOINT
VENTURES
-
-
-
-
-
-
4.1
Associates (Net)
-
-
-
-
-
-
4.1.1
Associates Consolidated Under Equity Accounting
(7)
-
-
-
-
-
-
4.1.2
Unconsolidated Associates
-
-
-
-
-
-
4.2
Subsidiaries (Net)
-
-
-
-
-
-
4.2.1
Unconsolidated Financial Investments in Subsidiaries
(8)
-
-
-
-
-
-
4.2.2
Unconsolidated Non-Financial Investments in Subsidiaries
-
-
-
-
-
-
4.3
Joint Ventures (Net)
-
-
-
-
-
-
4.3.1
Joint-Ventures Consolidated Under Equity Accounting
(9)
-
-
-
-
-
-
4.3.2
Unconsolidated Joint-Ventures
-
-
-
-
-
-
V.
TANGIBLE ASSETS (Net)
(12)
67,487
-
67,487
50,341
-
50,341
VI.
INTANGIBLE ASSETS (Net)
(13)
12,224
-
12,224
4,436
-
4,436
6.1
Goodwill
-
-
-
-
-
-
6.2
Others
12,224
-
12,224
4,436
-
4,436
VII.
INVESTMENT PROPERTY (Net)
(14)
-
-
-
-
-
-
VIII.
CURRENT TAX ASSET
(15)
-
-
-
-
-
-
IX.
DEFERRED TAX ASSET
(15)
-
-
-
7,656
-
7,656
X.
OTHER ASSETS (Net)
(17)
101,011
1,350,687
1,451,698
40,623
457,901
498,524
TOTAL ASSETS
5,693,291
5,712,932
11,406,223
2,632,798
3,273,555
5,906,353
The notes between pages 12 and 113 are an integral part of these unconsolidated financial statements.
DEUTSCHE BANK ANONİM ŞİRKETİ
BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
5
I. BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) (continued)
Audited
Audited
Current period
Prior period
31 December 2022
31 December 2021
LIABILITIES
Note
(5 - II)
TL
FC
Total
TL
FC
Total
I.
DEPOSITS
(1)
1,464,299
724,387
2,188,686
807,630
681,900
1,489,530
II.
FUNDS BORROWED
(3)
282,124
5,615,080
5,897,204
140,050
2,854,241
2,994,291
III.
MONEY MARKET FUNDS
160,304
-
160,304
30,448
-
30,448
IV.
SECURITIES ISSUED (NET)
-
-
-
-
-
-
4.1
Bills
-
-
-
-
-
-
4.2
Asset Backed Securities
-
-
-
-
-
-
4.3
Bonds
-
-
-
-
-
-
V.
FUNDS
-
-
-
-
-
-
5.1
Borrowers’ Funds
-
-
-
-
-
-
5.2
Others
-
-
-
-
-
-
VI.
FINANCIAL LIABILITIES MEASURED AT FVTPL
-
-
-
-
-
-
VII.
DERIVATIVE FINANCIAL LIABILITIES
(2)
-
268,264
268,264
-
175,370
175,370
7.1
Derivative Financial Liabilities Measured at FVTPL
-
268,264
268,264
-
175,370
175,370
7.2
Derivative Financial Liabilities Measured at FVOCI
-
-
-
-
-
-
VIII.
FACTORING PAYABLES
-
-
-
-
-
-
IX.
LEASE PAYABLES
(5)
18,250
-
18,250
15,331
-
15,331
X.
PROVISIONS
(7)
42,632
249,787
292,419
14,046
113,557
127,603
10.1
Restructuring Reserves
-
-
-
-
-
-
10.2
Reserve for Employee Benefits
11,670
56,210
67,880
7,357
33,179
40,536
10.3
Insurance Technical Provisions (Net)
-
-
-
-
-
-
10.4
Other Provisions
30,962
193,577
224,539
6,689
80,378
87,067
XI
CURRENT TAX LIABILITY
(8)
137,423
-
137,423
25,432
-
25,432
XII
DEFERRED TAX LIABILITY
(8)
37,539
-
37,539
-
-
-
XIII.
LIABILITIES FOR ASSETS HELD FOR SALE AND
ASSETS OF DISCONTINUED OPERATIONS (Net)
(9)
-
-
-
-
-
-
13.1
Asset Held for Sale
-
-
-
-
-
-
13.2
Assets of Discontinued Operations
-
-
-
-
-
-
XIV.
SUBORDINATED DEBTS
(10)
-
-
-
-
-
-
14.1
Borrowings
-
-
-
-
-
-
14.2
Other Debt Instruments
-
-
-
-
-
-
XV.
OTHER LIABILITIES
480,697
105,921
586,618
23,612
38,345
61,957
XVI.
SHAREHOLDERS’ EQUITY
(11)
1,819,516
-
1,819,516
986,391
-
986,391
16.1
Paid-in Capital
(11)
135,000
-
135,000
135,000
-
135,000
16.2
Capital Reserves
31,866
-
31,866
31,866
-
31,866
16.2.1
Share Premium
-
-
-
-
-
-
16.2.2
Share Cancellation Profits
-
-
-
-
-
-
16.2.3
Other Capital Reserves
31,866
-
31,866
31,866
-
31,866
16.3
Other Comprehensive Income/Expense Items not to be Recycled to
Profit or Loss
(3,221)
-
(3,221)
(1,190)
-
(1,190)
16.4
Other Comprehensive Income/Expense Items to be Recycled to
Profit or Loss
-
-
-
(4,935)
-
(4,935)
16.5
Profit Reserves
807,754
-
807,754
644,701
-
644,701
16.5.1
Legal Reserves
86,067
-
86,067
84,952
-
84,952
16.5.2
Status Reserves
-
-
-
-
-
-
16.5.3
Extraordinary Reserves
721,687
-
721,687
559,749
-
559,749
16.5.4
Other Profit Reserves
-
-
-
-
-
-
16.6
Profit/Loss
848,117
-
848,117
180,949
-
180,949
16.6.1
Prior Periods’ Profit/Loss
-
-
-
-
-
-
16.6.2
Current Period’s Net Profit/Loss
848,117
-
848,117
180,949
-
180,949
16.7
Minority Shareholders
-
-
-
-
-
-
TOTAL EQUITY AND LIABILITIES
4,442,784
6,963,439
11,406,223
2,042,940
3,863,413
5,906,353
The notes between pages 12 and 113 are an integral part of these unconsolidated financial statements.
DEUTSCHE BANK ANONİM ŞİRKETİ
OFF-BALANCE SHEET (STATEMENT OF FINANCIAL POSITION)
AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
6
II. OFF-BALANCE SHEET COMMITMENTS
Audited Current period
Audited Prior period
31 December 2022
31 December 2021
OFF-BALANCE SHEET
Note
(5 - III)
TL
FC
Total
TL
FC
Total
A.
OFF-BALANCE SHEET COMMITTMENTS (I+II+III)
22,091,140
26,141,742
48,232,882
2,819,859
4,876,459
7,696,318
I.
GUARANTIES AND WARRANTIES
(1)
310,976
514,305
825,281
144,147
305,301
449,448
1.1
Letters of guarantee
310,976
512,772
823,748
144,147
303,512
447,659
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
310,976
512,772
823,748
144,147
303,512
447,659
1.2
Bank acceptances
-
-
-
-
-
-
1.2.1
Import letter of acceptance
-
-
-
-
-
-
1.2.2
Other bank acceptances
-
-
-
-
-
-
1.3
Letters of credit
-
1,533
1,533
-
1,789
1,789
1.3.1
Documentary letters of credit
-
1,533
1,533
-
1,789
1,789
1.3.2
Other letters of credit
-
-
-
-
-
-
1.4
Guaranteed prefinancings
-
-
-
-
-
-
1.5
Endorsements
-
-
-
-
-
-
1.5.1
Endorsements to the Central Bank of Turkey
-
-
-
-
-
-
1.5.2
Other endorsements
-
-
-
-
-
-
1.6
Underwriting commitments
-
-
-
-
-
-
1.7
Factoring related guarantees
-
-
-
-
-
-
1.8
Other guarantees
-
-
-
-
-
-
1.9
Other sureties
-
-
-
-
-
-
II.
COMMITMENTS
(1)
3,671,144
242,936
3,914,080
171,915
104,944
276,859
2.1
Irrevocable commitments
3,671,144
242,936
3,914,080
171,915
104,944
276,859
2.1.1
Forward asset purchase and sales commitments
3,626,852
242,936
3,869,788
75,728
104,944
180,672
2.1.2
Forward deposit purchase and sales commitments
-
-
-
-
-
-
2.1.3
Share capital commitments to associates and subsidiaries
-
-
-
-
-
-
2.1.4
Loan granting commitments
28,307
-
28,307
94,976
-
94,976
2.1.5
Securities issuance brokerage commitments
-
-
-
-
-
-
2.1.6
Commitments for reserve deposit requirements
-
-
-
-
-
-
2.1.7
Commitments for cheque payments
-
-
-
-
-
-
2.1.8
Tax and fund obligations on export commitments
15,985
-
15,985
1,211
-
1,211
2.1.9
Commitments for credit card limits
-
-
-
-
-
-
2.1.10
Commitments for credit cards and banking services related promotions
-
-
-
-
-
-
2.1.11
Receivables from “short” sale commitments on securities
-
-
-
-
-
-
2.1.12
Payables from “short" sale commitments on securities
-
-
-
-
-
-
2.1.13
Other irrevocable commitments
-
-
-
-
-
-
2.2
Revocable commitments
-
-
-
-
-
-
2.2.1
Revocable loan granting commitments
-
-
-
-
-
-
2.2.2
Other revocable commitments
-
-
-
-
-
-
III.
DERIVATIVE FINANCIAL INSTRUMENTS
(2)
18,109,020
25,384,501
43,493,521
2,503,797
4,466,214
6,970,011
3.1
Derivative financial instruments held for risk management
-
-
-
-
-
-
3.1.1
Fair value hedges
-
-
-
-
-
-
3.1.2
Cash flow hedges
-
-
-
-
-
-
3.1.3
Hedge of net investment in foreign operations
-
-
-
-
-
-
3.2
Trading derivatives
18,109,020
25,384,501
43,493,521
2,503,797
4,466,214
6,970,011
3.2.1
Forward foreign currency purchases/sales
10,152,025
9,745,026
19,897,051
1,153,751
1,409,072
2,562,823
3.2.1.1
Forward foreign currency purchases
8,166,687
1,980,637
10,147,324
857,166
422,805
1,279,971
3.2.1.2
Forward foreign currency sales
1,985,338
7,764,389
9,749,727
296,585
986,267
1,282,852
3.2.2
Currency and interest rate swaps
7,727,208
15,419,771
23,146,979
1,350,046
3,057,142
4,407,188
3.2.2.1
Currency swaps-purchases
93,712
11,410,212
11,503,924
93,712
2,103,977
2,197,689
3.2.2.2
Currency swaps-sales
7,633,496
4,009,559
11,643,055
1,256,334
953,165
2,209,499
3.2.2.3
Interest rate swaps-purchases
-
-
-
-
-
-
3.2.2.4
Interest rate swaps-sales
-
-
-
-
-
-
3.2.3
Foreign currency, interest rate and security options
-
-
-
-
-
-
3.2.3.1
Foreign currency call options
-
-
-
-
-
-
3.2.3.2
Foreign currency put options
-
-
-
-
-
-
3.2.3.3
Interest rate call options
-
-
-
-
-
-
3.2.3.4
Interest rate put options
-
-
-
-
-
-
3.2.3.5
Security call options
-
-
-
-
-
-
3.2.3.6
Security put options
-
-
-
-
-
-
3.2.4
Foreign currency futures
229,787
219,704
449,491
-
-
-
3.2.4.1
Foreign currency futures-purchases
227,888
1,870
229,758
-
-
-
3.2.4.2
Foreign currency futures-sales
1,899
217,834
219,733
-
-
-
3.2.5
Interest rate futures
-
-
-
-
-
-
3.2.5.1
Interest rate futures-purchases
-
-
-
-
-
-
3.2.5.2
Interest rate futures-sales
-
-
-
-
-
-
3.2.6
Others
-
-
-
-
-
-
B.
CUSTODY AND PLEDGED ITEMS (IV+V+VI)
9,628,256
189,248
9,817,504
16,707,657
6,069,166
22,776,823
IV.
ITEMS HELD IN CUSTODY
9,628,256
186,966
9,815,222
16,707,657
6,002,695
22,710,352
4.1
Customers’ securities held
4,575,498
-
4,575,498
11,492,281
5,872,920
17,365,201
4.2
Investment securities held in custody
4,972,250
-
4,972,250
5,124,171
-
5,124,171
4.3
Checks received for collection
80,508
-
80,508
91,205
-
91,205
4.4
Commercial notes received for collection
-
-
-
-
-
-
4.5
Other assets received for collection
-
-
-
-
-
-
4.6
Assets received through public offering
-
-
-
-
-
-
4.7
Other items under custody
-
186,966
186,966
-
129,775
129,775
4.8
Custodians
-
-
-
-
-
-
V.
PLEDGED ITEMS
-
2,282
2,282
-
66,471
66,471
5.1
Marketable securities
-
-
-
-
-
-
5.2
Guarantee notes
-
-
-
-
-
-
5.3
Commodities
-
-
-
-
-
-
5.4
Warranties
-
-
-
-
-
-
5.5
Real estates
-
-
-
-
-
-
5.6
Other pledged items
-
2,282
2,282
-
66,471
66,471
5.7
Pledged items-depository
-
-
-
-
-
-
VI.
CONFIRMED BILLS OF EXCHANGE AND SURETIES
-
-
-
-
-
-
TOTAL OFF-BALANCE SHEET ITEMS (A+B)
31,719,396
26,330,990
58,050,386
19,527,516
10,945,625
30,473,141
The notes between pages 12 and 113 are an integral part of these unconsolidated financial statements.
DEUTSCHE BANK ANONİM ŞİRKETİ
STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
7
III. STATEMENT OF PROFIT OR LOSS
Audited
Current period
Audited
Prior period
INCOME AND EXPENSE ITEMS
Note
(5 - IV)
1 January –
31 December 2022
1 January –
31 December 2021
I.
INTEREST INCOME
(1)
1,093,216
499,069
1.1
Interest income on loans
677,253
243,091
1.2
Interest income on reserve deposits
-
-
1.3
Interest income on banks
79,459
193,344
1.4
Interest income on money market transactions
7,590
24,785
1.5
Interest income on securities portfolio
310,513
31,918
1.5.1
Financial assets measured at FVTPL
265,029
8,237
1.5.2
Financial assets measured at FVOCI
45,484
23,681
1.5.3
Financial assets measured at amortised cost
-
-
1.6
Financial lease income
-
-
1.7
Other interest income
18,401
5,931
II.
INTEREST EXPENSE
(2)
258,350
178,514
2.1
Interest on deposits
56,695
46,087
2.2
Interest on funds borrowed
87,073
130,104
2.3
Interest on money market transactions
112,023
212
2.4
Interest on securities issued
-
-
2.5
Lease interest expense
1,963
1,909
2.6
Other interest expenses
596
202
III.
NET INTEREST INCOME (I - II)
834,866
320,555
IV.
NET FEES AND COMMISSIONS INCOME/EXPENSES
65,592
67,210
4.1
Fees and commissions received
103,465
80,144
4.1.1
Non-cash loans
6,681
4,130
4.1.2
Others
(12)
96,784
76,014
4.2
Fees and commissions paid
37,873
12,934
4.2.1
Non-cash loans
-
-
4.2.2
Others
(12)
37,873
12,934
V.
DIVIDEND INCOME
(3)
-
-
VI.
NET TRADING INCOME/LOSSES (Net)
(4)
652,842
85,463
6.1
Trading account income/losses
100,439
14,223
6.2
Income/losses from derivative financial instruments
907,817
14,782
6.3
Foreign exchange gains/losses
(355,414)
56,458
VII.
OTHER OPERATING INCOME
(5)
24,931
8,924
VIII.
TOTAL OPERATING PROFIT (III+IV+V+VI+VII)
1,578,231
482,152
IX.
EXPECTED CREDIT LOSSES (-)
(6)
7,274
1,114
X.
OTHER PROVISIONS (-)
-
-
XI.
PERSONNEL EXPENSES (-)
172,937
99,400
XII.
OTHER OPERATING EXPENSES (-)
(7)
266,980
140,361
XIII.
NET OPERATING PROFIT/LOSS (VIII-IX-X-XI-XII)
1,131,040
241,277
XIV.
INCOME RESULTED FROM MERGERS
-
-
XV.
INCOME/LOSS FROM INVESTMENTS UNDER EQUITY
ACCOUNTING
-
XVI.
GAIN/LOSS ON NET MONETARY POSITION
-
-
XVII.
OPERATING PROFIT/LOSS BEFORE TAXES (XIII+...+XVI)
(8)
1,131,040
241,277
XVIII.
PROVISION FOR TAXES OF CONTINUED OPERATIONS (±)
(9)
282,923
60,328
18.1
Current tax charge
236,778
62,316
18.2
Deferred tax charge (+)
46,145
-
18.3
Deferred tax credit (-)
-
(1,988)
XIX.
NET OPERATING PROFIT/LOSS AFTER TAXES (XVII±XVIII)
(10)
848,117
180,949
XX.
INCOME FROM DISCONTINUED OPERATIONS
-
-
20.1
Income from assets held for sale
-
-
20.2
Income from sale of associates, subsidiaries and joint-ventures
-
-
20.3
Others
-
-
XXI.
EXPENSES FROM DISCONTINUED OPERATIONS (-)
-
-
21.1
Expenses on assets held for sale
-
-
21.2
Expenses on sale of associates, subsidiaries and joint-ventures
-
-
21.3
Others
-
XXII.
PROFIT/LOSS BEFORE TAXES ON DISCONTINUED
OPERATIONS (XX-XXI)
(8)
-
-
XXIII.
PROVISION FOR TAXES OF DISCONTINUED OPERATIONS
(±)
(9)
-
-
23.1
Current tax charge
-
-
23.2
Deferred tax charge (+)
-
-
23.3
Deferred tax credit (-)
-
-
XXIV.
NET PROFIT/LOSS AFTER TAXES ON DISCONTINUED
OPERATIONS (XXII±XXIII)
(10)
-
-
XXV.
NET PROFIT/LOSS (XIX+XXIV)
(11)
848,117
180,949
25.1
Group’s profit
25.2
Minority shareholder’s profit/loss
Earnings Per Share (TL Full)
0,6282
0,1340
The notes between pages 12 and 113 are an integral part of these unconsolidated financial statements.
DEUTSCHE BANK ANONİM ŞİRKETİ
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
8
IV. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Audited
Audited
Current period
Prior period
1 January –
31 December 2022
1 January –
31 December 2021
I.
NET PERIOD PROFIT/LOSS
848,117
180,949
II.
OTHER COMPREHENSIVE INCOME
2,904
(3,813)
2.1
Other Comprehensive Income That Will Not Be Reclassified to Profit or Loss
(2,031)
(307)
2.1.1
Gains (Losses) on Revaluation of Property, Plant and Equipment
-
-
2.1.2
Gains (losses) on revaluation of Intangible Assets
-
-
2.1.3
Gains (losses) on remeasurements of defined benefit plans
(2,708)
(384)
2.1.4
Other Components of Other Comprehensive Income That Will Not Be Reclassified to Profit Or Loss
-
-
2.1.5
Taxes Relating To Components Of Other Comprehensive Income That Will Not Be Reclassified To Profit Or Loss
677
77
2.2
Other Comprehensive Income That Will Be Reclassified to Profit or Loss
4,935
(3,506)
2.2.1
Exchange Differences on Translation
-
-
2.2.2
Valuation and/or Reclassification Profit or Loss from financial assets at fair value through other comprehensive income
6,611
(4,769)
2.2.3
Income (Loss) Related with Cash Flow Hedges
-
-
2.2.4
Income (Loss) Related with Hedges of Net Investments in Foreign Operations
-
-
2.2.5
Other Components of Other Comprehensive Income that will be Reclassified to Other Profit or Loss
-
-
2.2.6
Taxes Relating To Components Of Other Comprehensive Income That Will Be Reclassified To Profit Or Loss
(1,676)
1,263
III.
TOTAL COMPREHENSIVE INCOME (I+II)
851,021
177,136
The notes between pages 12 and 113 are an integral part of these unconsolidated financial statements.
DEUTSCHE BANK ANONİM ŞİRKETİ
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
9
V. STATEMENT OF CHANGES IN EQUITY
Other Accumulated
Comprehensive Income
That Will Not Be
Reclassified In Profit
and Loss
Other Accumulated
Comprehensive Income
That Will Be
Reclassified In Profit
and Loss
STATEMENT OF CHANGES IN SHAREHOLDERS’
EQUITY
Paid in
Capital
Share
Premium
Share Certificate
Cancel Profits
Other Capital
Reserves
1
2
3
4
5
6
Profit Reserves
Prior Period Net
Income/(Loss)
Current Period Net
Income/(Loss)
Total
Footnote
PRIOR PERIOD
1 January - 31 December 2021
I.
Balance at the beginning of the period
135,000
-
-
31,866
-
(883)
-
-
(1,429)
-
567,974
-
84,979
817,507
II.
Adjustment in accordance with TMS 8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.1
Effect of adjustment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.2
Effect of changes in accounting policies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
III.
New balance (I+II)
135,000
-
-
31,866
-
(806)
-
-
(1,429)
-
567,974
-
84,979
817,507
IV.
Total comprehensive income (loss)
-
-
-
-
-
(307)
-
-
(3,506)
-
-
-
180,949
177,136
V.
Capital increase in cash
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VI.
Capital increase through internal reserves
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VII.
Issued capital inflation adjustment difference
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VIII.
Convertible bonds
-
-
-
-
-
-
-
-
-
-
-
-
-
-
IX.
Subordinated debt
-
-
-
-
-
-
-
-
-
-
-
-
-
-
X.
Increase /(decrease) through other changes, equity
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XI.
Profit distribution
-
-
-
-
-
-
-
-
-
-
76,727
-
(84,979)
(8,252)
11.1
Dividends distributed
-
-
-
-
-
-
-
-
-
-
-
-
(8,252)
(8,252)
11.2
Transfers to legal reserves
-
-
-
-
-
-
-
-
-
76,727
-
(76,727)
-
11.3
Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balances (III+IV+…...+X+XI)
135,000
-
-
31,866
-
(1,190)
-
-
(4,935)
-
644,701
-
180,949
986,391
CURRENT PERIOD
1 January – 31 December 2022
I.
Balance at the beginning of the period
135,000
-
-
31,866
-
(1,190)
-
-
(4,935)
-
644,701
-
180,949
986,391
II.
Adjustment in accordance with TMS 8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.1
Effect of adjustment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.2
Effect of changes in accounting policies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
III.
New balance (I+II)
135,000
-
-
31,866
-
(1,190)
-
-
(4,935)
-
644,701
-
180,949
986,391
IV.
Total comprehensive income (loss)
-
-
-
-
-
(2,031)
-
-
4,935
-
-
-
848,117
851,021
V.
Capital increase in cash
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VI.
Capital increase through internal reserves
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VII.
Issued capital inflation adjustment difference
-
-
-
-
-
-
-
-
-
-
-
-
-
-
VIII.
Convertible bonds
-
-
-
-
-
-
-
-
-
-
-
-
-
-
IX.
Subordinated debt
-
-
-
-
-
-
-
-
-
-
-
-
-
-
X.
Increase /(decrease) through other changes, equity
-
-
-
-
-
-
-
-
-
-
-
-
-
-
XI.
Profit distribution
(5-V-5)
-
-
-
-
-
-
-
-
-
-
163,053
-
(180,949)
(17,896)
11.1
Dividends distributed
-
-
-
-
-
-
-
-
-
-
-
-
(17,896)
(17,896)
11.2
Transfers to legal reserves
(5-V-5)
-
-
-
-
-
-
-
-
-
-
163,053
-
(163,053)
-
11.3
Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balances (III+IV+…...+X+XI)
135,000
-
-
31,866
-
(3,221)
-
-
-
-
807,754
-
848,117
1,819,516
1
Tangible and Intangible Assets Revaluation Reserve
2
Accumulated Gains / Losses on Remeasurements of Defined Benefit Plans
3
Other (Other Comprehensive Income of Associates and Joint Ventures Accounted for Using Equity Method that will not be Reclassified to Profit or Loss and Other Accumulated Amounts of Other Comprehensive Income that will not be Reclassified to Profit or Loss)
4
Exchange Differences on Translation
5
Accumulated gains (losses) due to revaluation and/or reclassification of financial assets measured at fair value through other comprehensive income
6
Other (Accumulated Gains or Losses on Cash Flow Hedges, Other Comprehensive Income of Associates and Joint Ventures Accounted for Using Equity Method that will be Reclassified to Profit or Loss and Other Accumulated Amounts of Other Comprehensive Income that will be
Reclassified to Profit or Loss)
The notes between pages 12 and 113 are an integral part of these unconsolidated financial statements.
DEUTSCHE BANK ANONİM ŞİRKETİ
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
10
VI. STATEMENT OF CASH FLOWS
Audited
Audited
Current period
Prior period
Prior period
1 January –
31 December
2022
1 January –
31 December
2021
A.
CASH FLOWS FROM BANKING OPERATIONS
(5)
1.1
Operating profit before changes in operating assets and liabilities
644,360
685,875
1.1.1
Interests received
431,558
500,671
1.1.2
Interests paid
(236,568)
(178,967)
1.1.3
Dividend received
-
-
1.1.4
Fees and commissions received
70,086
48,184
1.1.5
Other income
10,087
3,212
1.1.6
Collections from previously written-off receivables
-
-
1.1.7
Cash payments to personnel and service suppliers
(199,762)
(111,647)
1.1.8
Taxes paid
(263,901)
(122,711)
1.1.9
Others
(5.VI.1)
832,860
547,133
1.2
Changes in operating assets and liabilities subject to banking operations
(833,597)
(557,839)
1.2.1
Net (increase) decrease in financial assets measured at FVTPL
(2,420,906)
(6,233)
1.2.2
Net (increase) decrease in due from banks
(736,759)
(239,862)
1.2.3
Net (increase) decrease in loans
(652,910)
1,194
1.2.4
Net (increase) decrease in other assets
(661,829)
(73,950)
1.2.5
Net increase (decrease) in bank deposits
149,439
(240,749)
1.2.6
Net increase (decrease) in other deposits
320,507
(295,032)
1.2.7
Net (increase) decrease in financial liabilities measured at FVTPL
-
-
1.2.8
Net increase (decrease) in funds borrowed
1,661,019
222,035
1.2.9
Net increase (decrease) in matured payables
-
-
1.2.10
Net increase (decrease) in other liabilities
(5.VI.1)
1,507,842
74,758
I.
Net cash used from banking operations
(189,237)
128,036
B.
CASH FLOWS FROM INVESTING ACTIVITIES
II.
Net cash used in investing activities
239,616
(244,231)
2.1
Cash paid for purchase of associates, subsidiaries and joint-ventures
-
-
2.2
Cash obtained from sale of associates, subsidiaries and joint-ventures
-
-
2.3
Purchases of tangible assets
(5.I.12)
(23,476)
(28,367)
2.4
Sales of tangible assets
-
-
2.5
Cash paid for purchase of financial assets measured at FVOCI
(530,184)
(332,149)
2.6
Cash obtained from sale of financial assets measured at FVOCI
804,719
119,578
2.7
Cash paid for purchase of financial assets measured at amortised cost
-
-
2.8
Cash obtained from sale of financial assets measured at amortised cost
-
-
2.9
Others
(5.I.13)
(11,443)
(3,293)
C.
CASH FLOWS FROM FINANCING ACTIVITIES
III.
Net cash used in financing activities
(27,034)
(14,597)
3.1
Cash obtained from funds borrowed and securities issued
-
-
3.2
Cash used for repayment of funds borrowed and securities issued
-
-
3.3
Equity instruments issued
-
-
3.4
Dividends paid
(5.V.5)
(17,001)
(7,839)
3.5
Payments for leases
(10,033)
(6,758)
3.6
Others
-
-
IV.
Effect of change in foreign exchange rate on cash and cash equivalents
(5.VI.1)
309,488
246,523
V.
Net increase in cash and cash equivalents
332,833
115,731
VI.
Cash and cash equivalents at beginning of period
(5.VI.2)
1,251,783
1,136,052
VII.
Cash and cash equivalents at the end of period
(5.VI.3)
1,584,616
1,251,783
The notes between pages 12 and 113 are an integral part of these unconsolidated financial statements.
DEUTSCHE BANK ANONİM ŞİRKETİ
STATEMENT OF PROFIT DISTRIBUTION FOR THE YEAR ENDED 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
11
VII. STATEMENT OF PROFIT DISTRIBUTION
Current period
(*)
Prior period
(***)
31 December 2022
31 December 2021
I.
DISTRIBUTION OF CURRENT YEAR INCOME
1.1
CURRENT YEAR INCOME
1,131,040
241,277
1.2
TAXES AND DUTIES PAYABLE
(282,923)
(60,328)
1.2.1
Corporate tax (Income tax)
(236,778)
(62,316)
1.2.2
Income withholding tax
-
-
1.2.3
Other taxes and duties
(**)
(46,145)
1,988
A.
NET INCOME FOR THE YEAR (1.1-1.2)
848,117
180,949
1.3
PRIOR YEARS LOSSES (-)
-
-
1.4
FIRST LEGAL RESERVES (-)
-
-
1.5
OTHER STATUTORY RESERVES (-)
-
-
B.
NET INCOME AVAILABLE FOR DISTRIBUTION [(A-(1.3+1.4+1.5)]
848,117
180,949
1.6
FIRST DIVIDEND TO SHAREHOLDERS (-)
-
6,750
1.6.1
To owners of ordinary shares
-
6,750
1.6.2
To owners of preferred shares
-
-
1.6.3
To owners of preferred shares (pre-emptive rights)
-
-
1.6.4
To profit sharing bonds
-
-
1.6.5
To holders of profit and loss sharing certificates
-
-
1.7
DIVIDENDS TO PERSONNEL (-)
-
-
1.8
DIVIDENDS TO BOARD OF DIRECTORS (-)
-
-
1.9
SECOND DIVIDEND TO SHAREHOLDERS (-)
-
11,146
1.9.1
To owners of ordinary shares
-
11,146
1.9.2
To owners of preferred shares
-
-
1.9.3
To owners of preferred shares (pre-emptive rights)
-
-
1.9.4
To profit sharing bonds
-
-
1.9.5
To holders of profit and loss sharing certificates
-
-
1.10
STATUTORY RESERVES (-)
-
-
1.11
EXTRAORDINARY RESERVES
-
163,053
1.12
OTHER RESERVES
-
-
1.13
PRIVATE FUNDS
-
-
II.
DISTRIBUTION OF RESERVES
-
-
2.1
APPROPRIATED RESERVES
-
-
2.2
DIVIDENDS TO SHAREHOLDERS (-)
-
-
2.2.1
To owners of ordinary shares
-
-
2.2.2
To owners of preferred shares
-
-
2.2.3
To owners of preferred shares (pre-emptive rights)
-
-
2.2.4
To profit sharing bonds
-
-
2.2.5
To holders of profit and loss sharing certificates
-
-
2.3
DIVIDENDS TO PERSONNEL (-)
-
-
2.4
DIVIDENDS TO BOARD OF DIRECTORS (-)
-
-
III.
EARNINGS PER SHARE
3.1
TO OWNERS OF ORDINARY SHARES
0,6282
0.1340
3.2
TO OWNERS OF ORDINARY SHARES (%)
62,82
13.40
3.3
TO OWNERS OF PRIVILAGED SHARES
-
-
3.4
TO OWNERS OF PRIVILAGED SHARES (%)
-
-
IV.
DIVIDEND PER SHARE
4.1
TO OWNERS OF ORDINARY SHARES
-
-
4.2
TO OWNERS OF ORDINARY SHARES (%)
-
-
4.3
TO OWNERS OF PRIVILAGED SHARES
-
-
4.4
TO OWNERS OF PRIVILAGED SHARES (%)
-
-
(*)
As of the date of this report the decision of profit distribution in the current year has not been made since the General Assembly meeting has not conducted yet.
(**)
Current and previous period amounts include deferred tax income and expenses.
(***)
The profit distribution table for the previous period became definite with the decision of the Ordinary General Assembly dated December 31, 2021 after the publication of
the independently audited financial statements dated March 31, 2022 and rearranged in this direction.
The notes between pages 12 and 113 are an integral part of these unconsolidated financial statements. .
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
12
SECTION THREE
EXPLANATIONS ON ACCOUNTING POLICIES
I. Basis of presentation
1.a Disclosures on the preparation of financial statements and its explanatory notes in accordance with
the Turkish Accounting Standards and the Regulation on Accounting Applications for Banks and
Safeguarding of Documents
The Bank prepares its financial statements in accordance with the Banking Regulation and Supervision
Authority (“BRSA”) Accounting and Reporting Regulation which includes the regulation on “The
Procedures and Principles Regarding Banks’ Accounting Practices and Maintaining Documents”
published in the Official Gazette dated 1 November 2006 with No. 26333, and other regulations on
accounting records of banks published by the Banking Regulation and Supervision Board and circulars
and pronouncements published by the BRSA and Turkish Financial Reporting Standards (“TFRS”)
published by the Public Oversight Accounting and Auditing Standards Authority (“POA”) for the matters
not regulated by the aforementioned legislations.
The financial statements have been prepared in TL, under the historical cost basis as modified in
accordance with inflation adjustments until 31 December 2004, except for the financial assets and
liabilities which are carried at fair value.
1.b Accounting policies and measurement
The accounting policies and valuation adopted in the preparation of the financial statements, the
Regulation published by the (‘’BDDK’’) on accounting and financial reporting principles is determined
and applied in accordance with the principles of TAS/TFRS (all “BRSA Accounting and Financial
Reporting Legislation”), which is put into force by the Public Oversight Autority (‘’POA’’) on the
disclosures and circulars and the matters not regulated by the Communique and is consistent with the
accounting policies applied in the financial statements prepared in the previous year. These accounting
policies and valuation principles are explained in Notes II and XXV.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
13
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
1.c Judgements and estimates used in the preparation of the financial statements:
TAS 29 Financial Reporting in Hyperinflation Economies requires entities whose functional currency is that of a
hyperinflationary economy to prepare their financial statements in terms of the measuring unit current at the end of
the reporting period. TAS 29 describes characteristics that may indicate that an economy is hyperinflationary, and it
requires all entities that report in the currency of the same hyperinflationary economy apply this Standard from the
same date. Therefore, it is expected that TAS 29 will start to be applied simultaneously by all entities with the
announcement of Public Oversight Accounting and Auditing Standards Authority to ensure consistency of the
application required by TAS 29 throughout the country. However, the Authority has not published any announcement
that determines entities would restate their financial statements for the accounting period ending on 31 December
2022 in accordance with TAS 29. In this context, TMS 29 is not applied and inflation adjustment has not been reflected
in the financial statements as of December 31, 2022.
The tension between Russia and Ukraine since January 2022 has turned into a crisis and an armed conflict as of the
date of the report. Bank does not carry out major activities in these two countries that are subject to the crisis.
Considering the geographies in which Bank operates, no direct impact is expected on Bank operations. However,
since the course of the crisis is uncertain as of the date of this report, developments that may occur on a global scale,
and the effects of these developments on the global and regional economy and on Bank's operations, are closely
monitored and considered with the best estimation approach in the preparation of the financial statements.
The preparation of financial statements in accordance with the Banking Regulation and Supervision Authority
(“BRSA”) Accounting and Reporting Regulation requires the use of certain critical accounting estimates by the Bank
management to exercise its judgment on the assets and liabilities of the balance sheet and contingent issues as of the
balance sheet date. These estimates are being reviewed regularly and. when necessary, suitable corrections are made
and the effects of these corrections are reflected to the income statement. The assumptions and estimations that used
is presented below related notes.
II. Basis of presentation of financial statements
The accounting rules and the valuation principles used in the preparation of the financial statements are
implemented as stated in the Reporting Standards.
The accounting policies taken as basis in the preparation of these financial statements are the same as
those used in the most recent annual financial statements.
In addition, some other standard changes have come into force as of January 1, 2022. However, these
changes have no impact on the financial statements of the Bank.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
14
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
III. Explanations on strategy of using financial instruments and foreign currency transactions
The main operations of the Bank are, interbank money market transactions, purchasing and selling
marketable securities, foreign currency transactions and providing collateralised cash, non-cash loans and
custody services.
The Bank’s main funding sources are equity, deposit and borrowings from domestic and foreign financial
institutions. Bank’s assets mainly consist of placements in banks, reverse repo transactions, corporate loans
and financial assets at fair value through profit or loss.
The Bank’s off balance sheet exposures consist of forward foreign exchange purchase transactions, letter
of credit and letter of guarantee.
Foreign currency risk, interest rate risk and liquidity risk are daily measured and monitored and the asset-
liability management is performed within the internal risk limits and legal limits
The Bank has no foreign currency denominated capital market instruments at fair value through profit or
loss.
The Bank has no investments in foreign associates.
As of 31 December 2022, foreign currency denominated balances are translated into TL using the exchange
rates of TL 18,6966 for USD and TL 19,8816 for EURO.
IV. Forwards, options and other derivative transactions
The Bank’s derivative transactions mainly consist of foreign currency swaps, foreign currency options and
forward foreign currency purchase/sale contacts.
Bank’s derivative transactions are classified under “Derivative financial assets at fair value through profit
or loss” in accordance with TFRS 9.
Liabilities and receivables arising from the derivative instruments are recorded under the off-balance sheet
accounts at their contractual values.
Derivative transactions are measured at fair value. The changes in their fair values are recorded on balance
sheet under “derivative financial assets measured at fair value through profit/loss” or “derivative financial
liabilities measured at fair value through profit/loss”, respectively depending on the fair values being
positive or negative. Fair value changes for derivatives are recorded in the account of “income/losses from
derivative transactions under statement of profit or loss. The fair values of the derivative financial
instruments are calculated using quoted market prices or by using discounted cash flow models.
Embedded derivatives are not separated from the host contract and accounted according with the host
contract’s based standard. The Bank has no embadded derivative as of 31 December 2022 (31 December
2021: None).
V. Explanations on interest income and expenses
Interest income and expenses are recognised in the income statement on an accrual basis by using the
effective interest method (The net present value of the future cash flows of the financial asset or liability).
VI. Explanations on fee and commission income and expense
Commissions received for various banking services are recorded when they are collected and other
income and expense items are recorded on an accrual basis. Fees and commissions paid or received loan
fees and commission, expense/income considered as transaction cost and recognized according to
effective interest rate methods. Income derived from agreements and asset purchases and custodian
transactions made on behalf of third parties are recognised as income when they are realised.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
15
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
VII. Explanation on financial assets
The Bank recognises its financial assets as “Fair Value through Profit or Loss”, “Fair Value through Other
Comprehensive Income” or “Measured at Amortized Cost”. Such financial assets are recognized or
derecognized according to TFRS 9 Financial Instruments Part 3 Issued for classification and measurement
of the financial instruments published in the Official Gazette No. 29953 dated 19 January 2017 by the
Public Oversight Accounting and Auditing Standards Authority. Financial assets are measured at fair value
at initial recognition in the financial statements. During the initial recognition of financial assets other than
“Financial Assets at Fair Value through Profit or Loss”, transaction costs are added to fair value or deducted
from fair value.
The Bank recognizes a financial asset into financial statements when it becomes a party to the contractual
terms of a financial instrument. During the first recognition of a financial asset into the financial statements,
business model determined by Bank management and the nature of contractual cash flows of the financial
asset are taken into consideration. When the business model determined by the Bank’s management is
changed, all affected financial assets are reclassified and this reclassification is applied prospectively. In
such cases, no adjustments is made to earnings, losses or interest that were previously recorded in the
financial statements.
a. Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets other than the ones that are managed
with business model that aims to hold to collect contractual cash flows or business model that aims to
collect both the contractual cash flows and cash flows arising from the sale of the assets; and if the
contractual terms of the financial asset do not lead to cash flows representing solely payments of principal
and interest at certain date; that are either acquired for generating a profit from short- term fluctuations in
prices or are financial assets included in a portfolio aiming to short-term profit making. Financial assets at
the fair value through profit or loss are initially recognized at fair value and remeasured at their fair value
after recognition. All gains and losses arising from these valuations are reflected in the statement of profit
or loss.
The Bank has Financial assets measured at Fair Value through Profit or Loss amounting to TL 2,427,140
as of December 31, 2022 (December 31, 2021: TL 6,234).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
16
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
VII. Explanation on financial assets (continued)
b. Financial assets at fair value through other comprehensive income
In addition to financial assets within a business model that aims to hold to collect contractual cash flows
and aims to hold to sell, financial asset with contractual terms that lead to cash flows are solely payments
of principal and interest at certain dates, they are classified as fair value through other comprehensive
income.
Financial assets at fair value through other comprehensive income are recognized by adding transaction
cost to acquisition cost reflecting the fair value of the financial asset. After the recognition, financial assets
at fair value through other comprehensive income are remeasured at fair value. Interest income calculated
with effective interest rate method arising from financial assets at fair value through other comprehensive
income and dividend income from equity securities are recorded to income statement. “Unrealized gains
and losses” arising from the difference between the amortized cost and the fair value of financial assets at
fair value through other comprehensive income are not reflected in the income statement of the period until
the acquisition of the asset, sale of the asset, the disposal of the asset, and impairment of the asset and they
are accounted under the “Accumulated other comprehensive income or expense to be reclassified through
profit or loss” under shareholders’ equity.
As of 31 December 2022, the Bank does not have Financial Assets at Fair Value through Other
Comprehensive Income (31 December 2021: 290,526).
c. Financial assets measured at amortized cost
Financial assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are classified as financial assets measured at amortized cost.
Financial assets measured at amortized cost are initially recognized at acquisition cost including the
transaction costs which reflect the fair value of those instruments and subsequently recognized at amortized
cost by using “effective interest rate method (Internal rate of return)”. Interest income obtained from
financial assets measured at amortized cost is accounted in income statement.
d. Derivative financial assets
Derivative financial instruments of the Bank are classified under “Derivative Financial Assets Designated
at Fair Value through Profit or Loss” in accordance with “TFRS 9 Financial Instruments” (“TFRS 9”).
Payables and receivables arising from the derivative instruments are recorded in the off-balance sheet
accounts at their contractual values. Derivative transactions are valued at their fair values subsequent to
their acquisition. In accordance with the classification of derivative financial instruments, if the fair value
is positive, the amount is classified as “Derivative Financial Assets at Fair Value through Profit or Loss”
The fair value differences of derivative financial instruments are recognized in the income statement under
trading profit/loss line in profit/loss from derivative financial transactions.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
17
VII. Explanation on financial assets (continued)
e. Loans
Loans are financial assets that have fixed or determinable payments terms and are not quoted in an active
market. Loans are initially recognized at acquisition cost plus transaction costs presenting their fair value
and thereafter measured at amortized cost using the “Effective Interest Rate (internal rate of return)
Method”.
As of the balance sheet, The Bank’s loans are recorded under the “Measured at Amortized Cost” account.
VIII. Explanations on expected credit losses
Starting from 1 January 2018, the Bank recognises a loss allowance for expected credit losses on financial
assets and loans measured at amortised cost, financial assets measured at fair value through other
comprehensive income, loan commitments and financial guarantee contracts not measured at fair value
through profit/loss based on TFRS 9 and the regulation published in the Official Gazette no. 29750 dated
22 June 2016 in connection with “Procedures and Principals regarding Classification of Loans and
Allowances Allocated for Such Loans” effective from 1 January 2018. TFRS 9 impairment requirements
are not applicable for equity instruments.
At each reporting date, the Bank shall assess whether the credit risk on a financial instrument has increased
significantly since initial recognition. When making the assessment, the Bank shall use the change in the
risk of a default occurring for the financial instrument.
As of the reporting date, if the credit risk on a financial instrument has not increased significantly since
initial recognition, the Bank shall measure the loss allowance for that financial instrument at an amount
equal to 12-month expected credit losses. However, if there is a significant increase in credit risk of a
financial instrument since initial recognition, the Bank measures loss allowance regarding such instrument
at an amount equal to lifetime expected credit losses.
Since January 2022, the tension between Russia and Ukraine has turned into a crisis and a hot conflict. The
Bank does not carry out any activities in the two countries that are subject to the crisis.
These financial assets are divided into three categories depending on the gradual increase in credit risk
observed since their initial recognition:
Stage 1: For the financial assets at initial recognition or that do not have a significant increase in credit risk
since initial recognition. Impairment for credit risk is recorded in the amount of 12-month expected credit
losses.
Stage 2: In the event of a significant increase in credit risk since initial recognition, the financial asset is
transferred to Stage 2. Impairment for credit risk is determined on the basis of the instrument’s lifetime
expected credit losses.
Stage 3: Includes financial assets that have objective evidence of impairment at the reporting date. For these
assets, lifetime expected credit losses are recognized and interest revenue is calculated on the net carrying
amount.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
18
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
VIII. Explanations on expected credit losses (continued)
Three scenarios are used in forward-looking expectations: base, negative and extremely negative. Final
provisions are calculated by weighting over the probabilities given to the scenarios. The Bank reviews
TFRS 9 models once a year in accordance with its internal policies. The internal rating model is validated
every year, confirming that its distinctiveness is at an acceptable level, and necessary revisions are made if
needed.
IX. Explanations on offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when the Bank
has a legally enforceable right to offset the recognized amounts and there is an intention to collect/pay the
related financial assets and liabilities on a net basis, or to realize the asset and settle the liability
simultaneously.
X. Explanations on sales and repurchase agreements and securities lending transactions
Securities subject to repurchase agreements (“Repo”) are classified as “Financial assets at fair value through
profit or loss”, “Financial assets at fair value through other comprehensive income.” and “Financial assets
measured at amortized cost” according to the investment purposes of the Bank and measured according to
the portfolio to which they belong. Funds obtained from repurchase agreements are accounted under “Funds
Provided under Repurchase Agreements” in liabilities and the difference between the sale and repurchase
price is accrued over the life of repurchase agreements using the effective interest method.
Funds given against securities purchased under agreements (“Reverse repo”) to resell are accounted under
“Money market placements” on the balance sheet. The difference between the purchase and determined
resell price is accrued over the life of repurchase agreements using the “effective interest method”. The
Bank has no securities lending transactions. As of 31 December 2022, the Bank has no reverse repo
transactions. (31 December 2021: 50,020).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
19
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
XI. Explanations on assets held for resale and discontinued operations
The Bank has no assets held for resale and discontinued operations as of 31 December 2022 and 31
December 2021.
XII. Explanations on goodwill and other intangible assets
There is no goodwill recognized in the financial statements as of 31 December 2022 and 31 December 2021.
Intangible assets are measured at cost on initial recognition and any directly attributable costs of setting the
asset to work for its intended use are included in the initial measurement. Subsequently, intangible assets
are carried at historical costs after the deduction of accumulated amortisation and the provision for value
decreases, if any.
Intangible assets are impaired when the book value exceeds the recoverable amount. Impairment indicates
that losses may be realised. When the indicators are present the Bank makes estimation on the recoverable
amount. If there are no indicators of impairment there is no need for the recoverable amount estimation.
Intangibles are amortised over their estimated useful lives using the straight-line method over 5-10 years.
The useful life of the asset is determined by assessing the expected useful life of the asset, technical,
technological and other kinds of obsolescence and all required maintenance expenses necessary to utilise
the economic benefit of the asset.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
20
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
XIII. Explanations on tangible assets
The property and equipment acquired before 31 December 2004 are recorded at restated historical costs in
accordance with inflation accounting and subsequent additions to 31 December 2004 are recorded at their
historical purchase costs.
The property and equipment are depreciated over their estimated useful lives on a straight-line basis.
If the recoverable amounts of the tangible assets are different than their restated net book values, the Bank
records other income in the income statement or other expense or equity to be added to equity.
Expenditures for the repair and renewal of property and equipment are recognised as expense. The capital
expenditures made in order to increase the capacity of the tangible asset or to increase its future benefits are
capitalised on the cost of the tangible asset. The capital expenditures include the cost components which are
used either to increase the useful life or the capacity of the asset, or the quality of the product or to decrease
the costs.
There are no restrictions such as pledges, mortgages or any other restrictions on the property and equipment
as of 31 December 2022 and 31 December 2021. There are no changes in the accounting estimates that
would have significant effects in the current period or in the following periods.
Depreciation rates and the estimated useful lives of tangible assets are as follows:
Motor Vehicles 5 years
Office Machinery 3 - 5 years
Furnitures and fixtures 5 - 15 years
XIV. Explanations on leasing transactions
The Bank has adopted “TFRS 16: Leases” as of 1 January 2019.
The Bank, uses lease transactions for buildings, vehicles and equipments.
As a lessee, the Bank has previously included the right to lease assets and leasing liabilities for most of its
leases in accordance with TFRS 16, although the Bank has previously been classified as operating or finance
leases, based on the assessment of whether all leases and benefits arising from ownership of the asset have
been transferred. In other words, these leases are presented in the statement of financial position. The Bank
classifies its right to use assets in classes of property, plant and equipment and intangible assets that are of
the same nature as their assets.
At the inception of a contract, the bank evaluates whether the contract is or contains a lease. If the contract
transfers the right to control the use of the identified asset for a specified period of time, the contract is or
includes a lease. The Bank reflects a right-of-use asset and a lease liability in its financial statements at the
commencement date of the lease.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
21
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
XIV. Explanations on leasing transactions (continued)
Right-of-use asset:
The right-of-use asset is initially accounted for using the cost method and includes:
a) The initial measurement amount of the lease liability,
b) The amount obtained by deducting all lease incentives received from all lease payments made on or before
the actual commencement of the lease,
c) All initial direct costs incurred by the bank
When applying the bank cost method, the right-of-use entity:
a) Accumulated depreciation and accumulated impairment losses are deducted; and
b) Measures at cost adjusted for remeasurement of the lease liability.
While depreciating right-of-use assets, the Bank applies the depreciation provisions of TAS 16 Tangible
Fixed Assets.
TAS 36 Impairment of Assets standard is applied to determine whether the right-of-use real estate is impaired
or not and to account for the determined impairment loss.
Lease obligation:
At the commencement date of the lease, the lease liability is measured at the present value of the lease
payments not paid at that date. Rent payments, if the implied interest rate in the lease can be easily determined,
this rate, if it cannot be easily determined, it is discounted using alternative borrowing interest rate. The Bank
used the alternative borrowing interest rate (10.60%, 23.19% for TL).
The lease payments included in the measurement of the lease liability at the commencement date consist of
payments for the right to use the underlying asset during the lease term that are not paid at the commencement
date of the lease:
After the actual commencement of the lease, the Bank measures the lease liability as follows:
a) Increases the book value to reflect the interest on the lease liability,
b) Decrease book value to reflect lease payments made; and
c) Remeasure book value to reflect reassessments and restructurings or to reflect revised lease payments that
are fixed in substance.
The interest on the lease liability for each period in the lease term is the amount found by applying a fixed
periodic interest rate to the remaining balance of the lease liability.
TFRS 16 introduced a single lease accounting model for lessees. As a result, the Bank, as a lessee, has
included the right-of-use asset representing the right to use the underlying asset and the lease liabilities
representing the lease payments that it is obligated to pay rent in its financial statements. Accounting for the
lessor is similar to previous accounting policies.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
22
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
XV. Explanations on provisions and contingent commitments
Provisions and contingent liabilities except for the specific and general provisions recognised for loans and
other receivables are accounted in accordance with the “Turkish Accounting Standard for Provisions,
Contingent Liabilities and Contingent Assets” (“TAS 37”).
Provisions are recognised when the Bank has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation, and a reliable estimate of the amount of the obligation can be made. The provision for
contingent liabilities arising from past events should be recognised in the same period of occurrence in
accordance with the “Matching principle”.
When the amount of the obligation cannot be estimated and there is no possibility of an outflow of resources
from the Bank, it is considered that a contingent liability exists and it is disclosed in the related notes to the
financial statements. Where the amount cannot be reliably measured and there is no possibility of a source
from the Bank to settle the obligation, and the amount of the obligation cannot be reliably measured, the
liability is recognized as “Contingent Liability” and information is provided in the footnotes.
XVI. Explanations on contingent assets
The contingent assets usually arise from unplanned or other unexpected events that give rise to the
possibility of an inflow of economic benefits to the Bank. If an inflow of economic benefits to the Bank
has become probable, then the contingent asset is disclosed in the footnotes to the financial statements. If
it has become virtually certain that an inflow of economic benefits will arise, the asset and the related
income are recognised in the financial statements of the period in which the change occurs.
XVII. Explanations on obligations related to employee rights
In accordance with the existing Turkish Labour Law, the Bank is required to make lump-sum termination
indemnities to each employee who has completed one year of service with the Bank and whose employment
is terminated due to retirement or for reasons other than resignation or misconduct and this amount is limited
by the termination indemnity upper limit.
Employee severance indemnities are not subject to legal funding requirements.
The provision has been calculated by estimating the present value of the future probable obligation of the
Bank arising from the retirement of employees. TAS 19 requires actuarial valuation methods to be
developed to estimate the enterprise’s obligation under defined benefit plans. Accordingly, assumptions on
discount rate, expected rate of salary increase and employee turnover rate is used in the calculation of the
total liability. These assumptions are reviewed on an annual basis.
Actuarial losses and gains are accounted under equity under Other Accumulated Comprehensive Income
or Expenses that will not be Reclassified to Profit or Loss.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
23
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
XVIII Explanations on taxation
Current tax
The Corporate Tax Law No. 5520 came into force by being published in the Official Gazette dated
September 21, 2006 and numbered 26205, many of its provisions being effective from 1 January 2006. The
corporate tax rate is applied to the tax base to be found as a result of adding the expenses that are not
accepted as deductible in accordance with the tax laws to the commercial income of the corporations, and
deducting the exceptions (such as the participation earnings exception) and deductions in the tax laws. No
further tax is paid if the profit is not distributed. The Law on the Amendment of the Law on the Evaluation
of Immovable Properties Belonging to the Treasury and Value Added Tax Law and Some Laws and Decree
Laws Regarding the Amendment of the Law, which entered into force by being published in the Official
Gazette dated April 15, 2022 and numbered 31810, with Article 26 of the Law on Making Amendments in
Certain Laws and Decree Laws Regarding the Amendment of the Law on the Evaluation of Immovable
Properties Belonging to the Treasury and Value Added Tax Law and the temporary Article 13 added to the
Corporate Tax Law numbered 5520, the Corporate Tax rate is applied as 25% for the corporate earnings of
banks, financial leasing, factoring, financing and savings financing companies, electronic payment and
money institutions, authorized exchange institutions, asset management companies, capital market
institutions, insurance and reinsurance companies, and pension companies, with the paragraph added. This
change is valid for the taxation of corporate earnings for periods starting from January 1, 2022, beginning
with the declarations to be submitted as of July 1, 2022. The tax rate of 25% has been used in the period
tax calculations in the financial statements dated December 31, 2022.
With the “Law Amending the Tax Procedure Law and the Corporate Tax Law”, which was accepted on
the agenda of the Turkish Grand National Assembly on January 20, 2022, the application of inflation
accounting was postponed starting from the balance sheet dated December 31, 2023.
Dividends paid to non-resident corporations, which have a place of business in Turkey or to resident
corporations are not subject to withholding tax. Otherwise, dividends paid are subject to withholding tax
at the rate of 10%. An increase in capital via issuing bonus shares is not considered as profit distribution
and thus does not incur withholding tax.
Advance tax is declared and paid by the 17th day of the second month following each calendar quarter end.
Advance tax paid by corporations which is for the current period is credited against the annual corporation
tax calculated on their annual corporate income in the following year. Despite the offset, if there is
temporary prepaid tax remaining, this balance can be refunded or used to offset any other financial liabilities
to the government.
75% of earnings generated through sale of equity shares, founders’ shares, redeemed shares and
preemption rights and 50% of earnings generated through sale of real estates held at least for two years by
the institutions are exempt from the corporate tax with the conditions that such earnings shall be held in a
special reserve account under equity until the end of five years following the year of sale and shall be
collected as cash until the end of the following two fiscal years.
According to the Turkish tax regulations, losses can be carried forward to offset against future taxable
income for up to five years. Losses cannot be carried back to offset profits from previous periods.
In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Tax returns are
required to be filled and delivered to the related tax office and the accrued tax is paid until the evening of
the 30th of the fourth month following the balance sheet date. Tax returns are open for five years from the
beginning of the year following the date of filing during which period the tax authorities have the right to
audit tax returns, and the related accounting records on which they are based, and may issue re-assessments
based on their findings.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
24
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
XVIII. Explanations on taxation (continued)
Deferred Tax
The deferred tax asset or liability is determined by calculating the "temporary differences" between the
values of assets and liabilities shown in the financial statements and the amounts taken into account in the
calculation of the taxable income according to the "Turkish Accounting Standard for Income Taxes" (TAS
12). The tax effects are calculated accordingly. The statutory tax rates that are valid as of the balance sheet
date are used in the calculation of deferred taxes in accordance with the current tax legislation. As of January
1, 2018, with the provisions of TFRS 9, deferred tax assets have also been calculated based on expected
loss provisions that constitute temporary differences. With the paragraph added to the temporary article 13
of the Corporate Tax Law No. 5520 in Article 26 of the Law No. 7394, which was published in the Official
Gazette dated April 15, 2022 and numbered 31810, the Corporate Tax rate is applied as 25% for banks. The
bank used a tax rate of 25% for temporary differences while preparing its financial-statements-dated-
December-31,-2022.
If the differences resulting from the valuation of relevant assets are accounted for in the income statement,
the current period corporate tax or deferred tax income or expense related to them are also accounted for in
the income statement. If the differences resulting from the valuation of relevant assets are directly
transferred to equity accounts, the tax effects are also accounted for directly in equity accounts.
The calculated deferred tax asset and liability are shown net in the financial statements.
. Transfer pricing
The Article No. 13 of the Corporate Tax Law describes the issue of transfer pricing under the title of
“disguised profit distribution” by way of transfer pricing. “The General Communiqué on Disguised Profit
Distribution by Way of Transfer pricing” published at 18 November 2007, explains the application related
issues on this topic.
According to this Communiqué, if the taxpayers conduct transactions like purchase and sale of goods or
services with the related parties where the prices are not determined according to the arm’s length principle,
then it will be concluded that there is a disguised profit distribution by way of transfer pricing. Such
disguised profit distributions will not be deducted from the corporate tax base for tax purposes.
XIX. Explanations on borrowings
Debt instruments such as borrowings from foreign banks and money market funds are major funding source
of the Bank. Mentioned borrowings are carried initially at acquisition cost and subsequently recognized at
the “discounted value” calculated by using the “Effective interest rate (“Internal rate of return”) method”.
XX. Explanations on issuance of share certificates
As of 31 December 2022, there is no share certificate issuance of the Bank (31 December 2021: None).
XXI. Explanations on avalized drafts and acceptances
As of 31 December 2022, there is no avalized drafts and acceptances of the Bank (31 December 2021:
None).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
25
EXPLANATIONS ON ACCOUNTING POLICIES (continued)
XXII. Explanations on government grants
As of 31 December 2022, the Bank has no government grants (31 December 2021: None).
XXIII. Explanations on segment reporting
A business segment is a The Bank’s product or service or an interrelated product or service engaged in
providing product or services that are subject to risks and returns that are different from those of other
business segments. Reporting according to the operational segment is presented in Note X of Section Four.
XXIV. Other disclosures
None.
XXV. Reclassifications
None.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
26
SECTION FOUR
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK
I. Explanation about equity items
Total capital amount and Capital adequacy ratio have been calculated in accordance with the “Regulation on
Equity of Banks” and “Regulation on Measurement and Assessment of Capital Adequacy of Banks”.
As of 31 December 2022, the Bank’s total capital has been calculated as TL 1,801,624 (31 December 2021:
TL 967,798), the capital adequacy ratio is 29.11% (31 December 2021: 24.75%). This ratio is above the
minimum ratio required by the legislation.
1. Information about total capital items:
31 December 2022
31 December 2021
Current Period
Prior Period
TIER 1 CAPITAL
Paid-in capital following all debts in terms of claim in liquidation of the Bank
166,866
166,866
Share issue premiums
-
-
Legal Reserves
807,754
644,701
Gains recognized in equity as per TAS
-
-
Profit
848,117
180,949
Current Period Profit
848,117
180,949
Prior Period Profit
-
-
Shares acquired free of charge from subsidiaries, affiliates and jointly controlled partnerships and cannot be
recognized within profit for the period
-
-
Tier I Capital Before Deductions
1,822,737
992,516
Deductions From Tier I Capital
Common Equity as per the 1st clause of Provisional Article 9 of the Regulation on the Equity of Banks
-
-
Portion of the current and prior periods’ losses which cannot be covered through reserves and losses reflected in equity
in accordance with TAS
3,221
6,125
Leasehold Improvements on Operational Leases
15,879
16,517
Goodwill after deduction from tax liability
-
-
Other intangibles other than mortgage-servicing rights, net of related tax liability
11,278
4,067
Deferred tax assets that rely on future profitability excluding those arising from temporary differences, net of related
tax liability
-
-
Differences are not recognized at the fair value of assets and liabilities subject to hedge of cash flow risk
-
-
Communiqué Related to Principles of the amount credit risk calculated with the Internal Ratings Based Approach,
total expected loss amount exceeds the total provision
-
-
Gains arising from securitization transactions
-
-
Unrealized gains and losses due to changes in own credit risk on fair valued liabilities
-
-
Net Amount Of Defined Benefit Plan Assets
-
-
Direct and indirect investments of the Bank in its own Common Equity
-
Shares obtained contrary to the 4th clause of the 56th Article of the Law
-
-
Total of Net Long Positions of the Investments in Equity Items of Banks and Financial Institutions where the Bank
does not own 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital
-
Total of Net Long Positions of the Investments in Equity Items of Banks and Financial Institutions where the Bank
owns 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital
-
-
Mortgage Servicing Rights Exceeding the 10% Threshold of Tier I Capital
-
-
Net Deferred Tax Assets arising from Temporary Differences Exceeding the 10% Threshold of Tier I Capital(-)
-
Amount Exceeding the 15% Threshold of Tier I Capital as per the Article 2, Clause 2 of the Regulation on
Measurement and Assessment of Capital Adequacy Ratios of Banks
-
-
The Portion of Net Long Position of the Investments in Equity Items of Banks and Financial Institutions where the
Bank Owns 10% or more of the Issued Share Capital not deducted from Tier I Capital (-)
-
-
Mortgage Servicing Rights not deducted
-
-
Deferred tax assets arising from temporary differences
-
-
Other items to be Defined by the Council
-
-
Total Deductions from Tier I Capital in cases where there are no adequate Additional Tier I or Tier II Capitals
-
-
Total Deductions from Tier I Capital
30,378
26,709
Total Tier 1 capital
1,792,359
965,807
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
27
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
I. Explanation about equity items (continued)
31 December 2022
31 December 2021
Current Period
Prior Period
ADDITIONAL CORE CAPITAL
Preferred Stock not Included in Tier I Capital and the Related Share Premiums
-
-
Debt Instruments and the Related Issuance Premiums Defined by the BRSA
-
-
Debt instruments and premiums approved by BRSA (Temporary Article 4)
-
-
Additional Core Capital before Deductions
-
-
Deductions from Additional Core Capital
Direct and Indirect Investments of the Bank on its own Additional Core Capital (-)
-
-
Investments of Bank to Banks that invest in Bank’s additional equity and components of equity issued by
financial institutions with compatible with Article 7
-
-
Total of Net Long Positions of the Investments in Equity Items of Banks and Financial Institutions where the
Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital (-)
-
-
The Total of Net Long Position of the Direct or Indirect Investments in Additional Tier I Capital of Banks and
Financial Institutions where the Bank Owns more than 10% of the Issued Share Capital (-)
-
-
Other items to be Defined by the BRSA (-)
-
-
Transition from the Core Capital to Continue to deduce Components
-
-
Goodwill or other intangibles and deferred tax liabilities of which the regulation concerning transitional Article 2
of subsection of core capital not reduced from
-
-
Net deferred tax asset/liability which is not deducted from Common Equity Tier 1 capital for the purposes of the
sub-paragraph of the Provisional Article 2 of the Regulation on Banks’ Own Funds (-)
-
-
Deductions to be made from common equity in the case that adequate Additional Tier I Capital or Tier II Capital
is not available (-)
-
-
Total Deductions From Additional Core Capital
-
-
Total Additional Core Capital
Total Core Capital (Core Capital= Tier I Capital +Additional Core Capital)
1,792,359
965,807
TIER II CAPITAL
Debt instruments and share issue premiums deemed suitable by the BRSA
-
-
Debt instruments and share issue premiums deemed suitable by BRSA (Temporary Article 4)
-
-
Provisions (Article 8 of the Regulation on the Equity of Banks)
9,265
1,991
Tier II Capital before Deductions
9,265
1,991
Deductions from Tier II Capital
Direct and Indirect Investments of the Bank on its own Tier II Capital (-)
-
-
Investments of Bank to Banks that invest on Bank’s Tier 2 and components of equity issued by financial
institutions with the conditions declared in Article 8
-
-
Total of Net Long Positions of the Investments in Equity Items of Banks and Financial Institutions where the
Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% Threshold of above Tier I Capital (-)
-
-
The Total of Net Long Position of the Direct or Indirect Investments in Additional Core Capital and Tier II
Capital of Banks and Financial Institutions where the Bank Owns 10% or more of the Issued Share Capital
Exceeding the 10% Threshold of Tier I Capital (-)
-
-
Other items to be Defined by the BRSA (-)
-
-
Total Deductions from Tier II Capital
Total Tier II Capital
9,265
1,991
Total Tier II Capital(Core Capital and Tier II Capital)
1,801,624
967,798
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
28
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
I. Explanation about equity items (continued)
31 December 2022
Current Period
31 December 2021
Prior Period
CAPITAL ADEQUACY RATIOS
Core Capital Adequacy Ratio (%)
28,96
24,70
Tier 1 Capital Adequacy Ratio (%)
28,96
24,70
Capital Adequacy Standard Ratio (%)
29,11
24,75
31 December 2022
31 December 2021
Current Period
Prior Period
Core Capital And Tier II Capital ( Total Capital)
1,801,624
967,798
Loans Granted against the Articles 50 and 51 of the Banking Law (-)
-
-
Net Book Values of Movables and Immovables Exceeding the Limit Defined in the Article 57, Clause
1 of the Banking Law and the Assets Acquired against Overdue Receivables and Held for Sale but
Retained more than Five Years (-)
-
-
Other items to be Defined by the BRSA (-)
-
-
In transition from Total Core Capital and Supplementary Capital (the capital) to Continue to
Download Components
The Sum of net long positions of investments (the portion which exceeds the 10% of Banks Common
Equity) in the capital of banking, financial and insurance entities that are outside the scope of
regulatory consolidation, where the bank does not own more than 10% of the issued common share
capital of the entity which will not deducted from Common Equity Tier 1 capital, Additional Tier 1
capital, Tier 2 capital for the purposes of the first sub-paragraph of the Provisional Article 2 of the
Regulation on Banks’ Own Funds
-
-
The Sum of net long positions of investments in the Additional Tier 1 capital and Tier 2 capital of
banking, financial and insurance entities that are outside the scope of regulatory consolidation, where
the bank does not own more than 10% of the issued common share capital of the entity which will not
deducted from Common Equity Tier 1 capital, Additional Tier 1 capital, Tier 2 capital for the purposes
of the first sub-paragraph of the Provisional Article 2 of the Regulation on Banks’ Own Funds
-
-
The Sum of net long positions of investments in the common stock of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, where the bank does not own more than
10% of the issued common share capital of the entity, mortgage servicing rights, deferred tax assets
arising from temporary differences which will not deducted from Common Equity Tier 1 capital for
the purposes of the first sub-paragraph of the Provisional Article 2 of the Regulation on Banks’ Own
Funds
-
-
EQUITY
Total capital (Core capital and Tier II capital)
1,801,624
967,798
Total risk weighted items
6,190,082
3,909,610
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
29
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
I. Explanation about equity items (continued)
31 December 2022
Current Period
31 December 2021
Priord Period
BUFFERS
Total buffer requirement (A+B+C)
2,517
2,520
a) Capital conservation buffer requirement (%)
2,500
2,520
b) Bank specific countercyclical buffer requirement (%)
0,017
0,02
c) Systemic significant bank buffer ratio
-
-
The ratio of Additional Common Equity Tier 1 capital which will be calculated by the first paragraph of the Article
4 of Regulation on Capital Conservation and Countercyclical Capital buffers to Risk Weighted Assets
20,96
16,70
Amounts below the Excess Limits as per the Deduction Principles
-
-
Portion of the total of net long positions of investments in equity items of unconsolidated banks and financial
institutions where the bank owns 10% or less of the issued share capital exceeding the 10% threshold of above Tier
I capital
-
-
Portion of the total of investments in equity items of unconsolidated banks and financial institutions where the bank
owns 10% or less of the issued share capital exceeding the 10% threshold of above Tier I capital
-
-
Mortgage servicing rights (net of related tax liability)
-
-
Amount arising from deferred tax assets based on temporary differences
-
-
Limits related to provisions considered in Tier II calculation
General provisions for standard based receivables (before tenthousandtwentyfive limitation)
9,265
1,991
Up to 1,25% of total risk-weighted amount of general reserves for receivables where the standard approach used
9,265
1,991
Excess amount of total provision amount to credit risk Amount of the Internal Ratings Based Approach in
accordance with the Communiqué on the Calculation
-
-
Excess amount of total provision amount to 0,6% of risk weighted receivables of credit risk Amount of the Internal
Ratings Based Approach in accordance with the Communiqué on the Calculation
-
-
Debt instruments subjected to Article 4
(to be implemented between January 1, 2018 and January 1, 2022)
Upper limit for Additional Tier I Capital subjected to temporary Article 4
-
-
Amounts Excess the Limits of Additional Tier I Capital subjected to temporary Article 4
-
-
Upper limit for Additional Tier II Capital subjected to temporary Article 4
-
-
Amounts Excess the Limits of Additional Tier II Capital subjected to temporary Article 4
-
-
* The amount to be taken into consideration under the Transitional Provisions
-
-
In accordance with the BRSA's decision dated April 28, 2022 and numbered 10188, in the calculation of the
amount based on credit risk in accordance with the Regulation on the Measurement and Evaluation of Capital
Adequacy due to the fluctuations in the financial markets as a result of the COVID-19 outbreak; When
calculating the amounts of monetary assets and non-monetary assets, other than items in foreign currency
measured in terms of historical cost, in accordance with Turkish Accounting Standards and related special
reserve amounts, the exchange rate announced by the CBRT on December 31, 2021 at 15:30 can be used until
a Board Decision is taken to the contrary, and the "Fair Value Difference Other Comprehensive Income" from
the securities owned as of the date of the decision In the event that the net valuation differences of those included
in the "Reflected Securities" portfolio are negative, it is possible that these differences may not be taken into
account in the amount of equity to be calculated in accordance with the Regulation on the Equity of Banks and
to be used for the capital adequacy ratio. As of 31 December 2022, the Bank used the foreign exchange buying
rate announced by the CBRT at 15:30 on 31 December 2021 in its Capital Adequacy calculations.
Information about instruments that will be included in total capital calculation
None (31 December 2021: None).
The difference between Total Capital and Equity in the unconsolidated balance sheet mainly arises from
allowance for expected credit losses (Stage I and Stage II), property and equipment and intangible assets. In
the calculation of Total Capital, allowance for expected credit losses (Stage I and Stage II) up to 1.25% credit
risk is taken into consideration as Tier II Capital. On the other hand, in the calculation of the Total Capital,
improvement costs for operating leases followed under property and equipment in the balance sheet, intangible
assets and related deferred tax liabilities are taken into consideration as amounts deducted from Total Capital.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
30
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
II. Explanations on credit risk
Credit borrowers are subject to risk limits approved by the Board of Directors in terms of geographic region,
group and sectorial concentration. Moreover, all banking activities are acted with the principle of not working
with the persons and institutions who are involved in the international black lists required by the legislation.
In the process of credit allocation and disbursement, futures and other derivative transactions, the approval
levels of the daily cash financing limits and risks of the customers are passed through the approval stages of
the management level depending on the approval limits. Risk limits and distributions are monitored on a daily
basis on a daily basis in relation to on-balance sheet and off-balance sheet transactions.
The credit risk assumed for future transactions is managed together with the potential risks arising from
market movements and transactions that are exposed to significant credit risk are avoided.
The creditworthiness of borrowers of loans and other receivables is monitored at regular intervals and in
accordance with the regulation of provisions. Care is taken to ensure that the account status documents
received for creditors are audited as provided for in the applicable legislation.
As of 31 December 2022, the Bank’s non-cash loan portfolio consists of 42 customers and non-cash loans
portfolio consist of 52 customers (31 December 2021: cash loans portfolio 45 and non-cash loans portfolio
53).
The share of cash and cash equivalents of the Bank from its top 100 loan customers in total cash and non-
cash loan portfolio is 100% (31 December 2021: 100%).
The sum of cash receivables from the first 100 credit customers constitutes 34% of the total balance sheet
assets and the amount of non-cash receivables from the first 100 credit customers constitutes 2% of the total
off-balance sheet assets (31 December 2021: 49% and 6%).
As of 31 December 2022, the expected loss of the Bank for credit risk is TL 9,265 and the expected loss of
the Bank for cash loans is TL 706 (31 December 2021: TL 1,991 and TL 574).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
31
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
II. Explanations on credit risk (continued)
a) Type of loans and specific provisions
31 December 2022
Corporate
Consumer
Factoring
Receivables
Total
Standard Loans
3,915,532
-
-
3,915,532
Loans under close monitoring
-
-
-
-
Non-performing loans
-
-
-
-
Specific provision (-)
-
-
-
-
Total
3,915,532
-
-
3,915,532
31 December 2021
Corporate
Consumer
Factoring
Receivables
Total
Standard Loans
2,891,575
-
-
2,891,575
Loans under close monitoring
-
-
-
-
Non-performing loans
-
-
-
-
Specific provision (-)
-
-
-
-
Total
2,891,575
-
-
2,891,575
b) Delayed loans and other receivables
None (31 December 2021: None).
c) Loans and receivables past due but not impaired
31 December 2022
Financial Assets at
Fair Value
through
P/L (Net)
Fair Value Difference
Reflected on Other
Comprehensive Income
(Net)
Held to
Maturity
Securities (Net)
Total
Moody’s
-
-
-
-
B3
(*)
2,427,140
-
-
2,427,140
Total
2,427,140
-
-
2,427,140
31 December 2021
Financial Assets at
Fair Value
through P/L (Net)
Fair Value Difference
Reflected on Other
Comprehensive Income
(Net)
Held to
Maturity
Securities (Net)
Total
Moody’s
B2
(*)
6,234
290,526
-
296,760
Total
6,234
290,526
-
296,760
(*)
Includes government bonds and bills.
d) Information on rating concentration
The Bank does not have any credit rating policy.
e) Fair value of collaterals (loans and advances to customers)
Guarantees received as at 31 December 2022 and 2021 are presented in “Credit Risk Mitigation Techniques”
disclosure.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
32
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
II. Explanations on credit risk (continued)
f) Credit risk is the risk reduction effects without taking into consideration the total amount of exposures
after offsetting transactions with different risk classes according to the types and amounts of
disaggregated risks are listed below the average for the period
Risk classifications:
Current Period
Risk Amount
(*)
Average Risk
Amount
(**)
Conditional and unconditional exposures to central governments or
central banks
2,988,705
3,203,698
Conditional and unconditional exposures to regional governments or
local authorities
-
-
Conditional and unconditional exposures to administrative bodies and
non-commercial undertakings
-
-
Conditional and unconditional exposures to multilateral development
banks
-
-
Conditional and unconditional exposures to international organisations
-
-
Conditional and unconditional exposures to banks and brokerage
houses
939,031
1,094,602
Conditional and unconditional exposures to corporates
4,272,902
4,184,121
Conditional and unconditional retail exposures
1,306
1,679
Conditional and unconditional exposures secured by real estate
property
-
-
Past due items
-
-
Items in regulatory high-risk categories
-
-
Exposures in the form of bonds secured by mortgages
-
-
Securitisation positions
-
-
Short term exposures to banks, brokerage houses and corporates
-
-
Exposures in the form of collective investment undertakings
-
-
Other receivables
83,392
73,204
(*)
Includes risk amounts given before the effect of credit risk mitigation but after the credit conversions.
(**)
Average risk amounts are the arithmetical average of the risk amounts after conversion in January-December period.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
33
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
II. Explanations on credit risk (continued)
f) Credit risk is the risk reduction effects without taking into consideration the total amount of exposures
after offsetting transactions with different risk classes according to the types and amounts of
disaggregated risks are listed below the average for the period (continued)
Risk classifications:
Prior Period
Risk Amount
(*)
Average Risk
Amount
(**)
Conditional and unconditional exposures to central governments or
central banks
2,472,921
1,536,875
Conditional and unconditional exposures to regional governments or
local authorities
-
-
Conditional and unconditional exposures to administrative bodies and
non-commercial undertakings
-
-
Conditional and unconditional exposures to multilateral development
banks
-
-
Conditional and unconditional exposures to international organisations
-
-
Conditional and unconditional exposures to banks and brokerage
houses
502,896
1,125,042
Conditional and unconditional exposures to corporates
3,084,377
2,034,440
Conditional and unconditional retail exposures
1,271
918
Conditional and unconditional exposures secured by real estate
property
-
-
Past due items
-
-
Items in regulatory high-risk categories
-
-
Exposures in the form of bonds secured by mortgages
-
-
Securitisation positions
-
-
Short term exposures to banks, brokerage houses and corporates
-
-
Exposures in the form of collective investment undertakings
-
-
Other receivables
59,698
8,472
(*)
Includes risk amounts given before the effect of credit risk mitigation but after the credit conversions.
(**)
Average risk amounts are the arithmetical average of the risk amounts after conversion in January-December period.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
34
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
II. Explanations on credit risk (continued)
g) Profile of significant exposures in major regions
31 December 2022
Conditional and
unconditional
exposures to
central
governments or
central banks
Conditional and
unconditional
exposures to
banks and
brokerage houses
Conditional
and
unconditional
exposures to
corporates
Conditional
and
unconditional
retail
exposures
Other
receivables
Total
1. Domestic
2,988,705
602,042
4,270,337
1,306
83,392
7,945,782
2. European Union (EU)
countries
-
264,614
2,565
-
-
267,179
3. OECD countries
(**)
-
-
-
-
-
-
4. Off-shore banking
regions
-
-
-
-
-
-
5. USA, Canada
-
24,373
-
-
-
24,373
6. Other countries
-
48,002
-
-
-
48,002
7. Associates,
subsidiaries and joint
ventures
-
-
-
-
-
-
8. Unallocated assets /
liabilities
(***)
-
-
-
-
-
-
Total
(*)
2,988,705
939,031
4,272,902
1,306
83,392
8,285,336
(*)
Includes risk amounts given before the effect of credit risk mitigation but after the credit conversions.
(**)
OECD countries other than EU countries, USA and Canada
(***)
Assets and liabilities that cannot be allocated on a consistent
31 December 2021
Conditional and
unconditional
exposures to
central
governments or
central banks
Conditional and
unconditional
exposures to
banks and
brokerage houses
Conditional
and
unconditional
exposures to
corporates
Conditional
and
unconditional
retail
exposures
Other
receivables
Total
1. Domestic
2,472,921
290,925
3,078,439
1,271
59,698
5,903,254
2. European Union
(EU) countries
-
161,669
5,875
-
-
167,544
3. OECD countries
(**)
-
-
-
-
-
-
4. Off-shore banking
regions
-
1,789
-
-
-
1,789
5. USA, Canada
-
23,586
-
-
-
23,586
6. Other countries
-
24,927
63
-
-
24,990
7. Associates,
subsidiaries and joint
ventures
-
-
-
-
-
-
8. Unallocated assets /
liabilities
(***)
-
-
-
-
-
-
Total
(*)
2,472,921
502,896
3,084,377
1,271
59,698
6,121,163
(*)
Includes risk amounts given before the effect of credit risk mitigation but after the credit conversions.
(**)
OECD countries other than EU countries, USA and Canada
(***)
Assets and liabilities that cannot be allocated on a consistent basis
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
35
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
II. Explanations on credit risk (continued)
h) Risk profile according to sectors and counterparties (continued)
31 December 2022
Conditional
and
unconditional
exposures
to central
governments or
central banks
Conditional
and
unconditional
exposures
to banks and
brokerage
houses
Conditional
and
unconditional
exposures to
corporates
Conditional
and
unconditional
retail
exposures
Other
receivables
Total
Agriculture
-
-
196,655
170
-
196,825
Farming and raising livestock
-
-
196,655
170
-
196,825
Forestry
-
-
-
-
-
-
Fishing
-
-
-
-
-
-
Manufacturing
-
-
3,619,725
904
-
3,620,629
Mining
-
-
-
-
-
-
Production
-
-
3,619,725
904
-
3,620,629
Electric, gas and water
-
-
-
-
-
-
Construction
-
-
188,293
-
-
188,293
Services
2,988,705
796,443
258,307
232
-
4,043,687
Wholesale and retail trade
-
-
112,174
232
-
112,406
Hotel, food and beverage services
-
-
-
-
-
-
Transportation and telecommunication
-
-
9,421
-
-
9,421
Financial institutions
2,988,705
796,443
56,510
-
-
3,841,658
Real estate and renting services
-
-
2,801
-
-
2,801
Self-employment services
-
-
-
-
-
-
Education services
-
-
-
-
-
-
Health and social services
-
-
77,401
-
-
77,401
Other
-
142,588
9,922
-
83,392
235,902
Total
(*)
2,988,705
939,031
4,272,902
1,306
83,392
8,285,336
(*)
Includes risk amounts before the effect of credit risk mitigation but after the credit conversions.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
36
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
II. Explanations on credit risk (continued)
h) Risk profile according to sectors and counterparties (continued)
31 December 2021
Conditional
and
unconditional
exposures
to central
governments or
central banks
Conditional
and
unconditional
exposures
to banks and
brokerage
houses
Conditional
and
unconditional
exposures to
corporates
Conditional
and
unconditional
retail
exposures
Other
receivables
Total
Agriculture
-
-
221,285
-
-
221,285
Farming and raising livestock
-
-
221,285
-
-
221,285
Forestry
-
-
-
-
-
-
Fishing
-
-
-
-
-
-
Manufacturing
-
-
2,241,133
737
-
2,241,870
Mining
-
-
-
-
-
-
Production
-
-
2,241,133
737
-
2,241,870
Electric, gas and water
-
-
-
-
-
-
Construction
-
-
130,245
-
-
130,245
Services
2,472,921
410,141
484,063
534
1,562
3,369,221
Wholesale and retail trade
-
-
255,704
273
-
255,977
Hotel, food and beverage services
-
-
-
-
-
-
Transportation and telecommunication
-
-
5,979
-
-
5,979
Financial institutions
2,472,921
410,141
219,880
-
1,562
3,104,504
Real estate and renting services
-
-
2,500
261
-
2,761
Self-employment services
-
-
-
-
-
-
Education services
-
-
-
-
-
-
Health and social services
-
-
-
-
-
-
Other
-
92,755
7,651
-
58,136
158,542
Total
(*)
2,472,921
502,896
3,084,377
1,271
59,698
6,121,163
(*)
Includes risk amounts before the effect of credit risk mitigation but after the credit conversions.
i) Risk profile on cyclical capital buffer:
The geographical distribution of the receivables from the private sector, which is taken into account in the
calculation of the cyclical capital buffer specific to the Bank within the scope of the Regulation on Capital
Protection and Cyclical Capital Buffers and its sub-regulations published in the Official Gazette dated 5
November 2013 and numbered 28812, is given in the table below.
Current Period
Ultimate risk-taking country
Private sector loans in
banking accounts
Risk weighted amounts calculated
within the scope of
trading accounts
Total
England
204
-
204
United Arab Emirates
193
-
193
Austria
126
-
126
Canada
116
-
116
Czech Republic
75
-
75
Norway
52
-
52
Other
4
-
4
Prior Period
Ultimate risk-taking country
Private sector loans in
banking accounts
Risk weighted amounts calculated
within the scope of
trading accounts
Total
Canada
189
-
189
England
151
-
151
Austria
122
-
122
United Arab Emirates
94
-
94
Czech Republic
72
-
72
Other
21
-
21
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
37
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
II. Explanations on credit risk (continued)
j) Distribution of maturity risk factors according to their outstanding maturities
Current Period
Term to maturity
1 month
1 - 3
months
3 - 6
months
6-12
months
Over
1 year
Total
Conditional and unconditional exposures to central
governments or central banks
2,982,852
5,853
-
-
-
2,988,705
Conditional and unconditional exposures to banks and
brokerage houses
548,993
44,672
60,827
19,820
264,719
939,031
Conditional and unconditional exposures to corporates
222,829
1,310,586
1,378,985
1,265,659
94,843
4,272,902
Conditional and unconditional retail exposures
-
161
10
119
1,016
1,306
Other receivables
4,109
-
-
-
79,283
83,392
Total (*)
3,758,783
1,361,272
1,439,822
1,285,598
439,861
8,285,336
Prior Period
Term to maturity
1 month
1 - 3
months
3 - 6
months
6-12
months
Over
1 year
Total
Conditional and unconditional exposures to central governments or
central banks
2,182,291
29,287
68,743
113,497
79,103
2,472,921
Conditional and unconditional exposures to banks and brokerage
houses
252,559
5,748
47,035
21,956
175,598
502,896
Conditional and unconditional exposures to corporates
428,461
752,304
1,514,395
293,523
95,694
3,084,377
Conditional and unconditional retail exposures
-
62
11
96
1,102
1,271
Other receivables
6,480
-
-
-
53,218
59,698
Total
(*)
2,869,791
787,401
1,630,184
429,072
404,715
6,121,163
(*)
Includes risk amounts before the effect of credit risk mitigation but after the credit conversions.
k) Information on risk classifications
According to the 6th article of the Communiqué on “Measurement and Assessment of Capital Adequacy of
Banks”, in the process of risk weighted assets calculation, risk weights are determined by central management
or the credit ratings of the receivables from the central banks are taken into account by the ratings of the Fitch
Ratings international credit rating agency.
TL and foreign exchange exposures of Central Government of Turkey and Central Bank of Turkey and all
reserve requirement balances have 0% risk weight.
The Fitch Ratings, risk ratings as per the credit quality grades are presented below:
Ratings to match
Credit Quality
Grades
Fitch
1
AAA and AA-
2
A+ and A-
Long-term Credit
3
BBB+ and BBB-
Rating
4
BB+ and BB-
5
B+ and B-
6
CCC+ and below
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
38
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
II. Explanations on credit risk (continued)
l) Risk amount based on risk weight
Risk Weight
(*)
Risk Weight
0%
10%
20%
35%
50%
75%
100%
250%
Other
Deductions From
Equity
1. Exposures Before Credit Risk
Mitigation
3,075,040
-
305,049
-
400,327
2,442
4,502,478
-
-
27,157
2. Exposures After Credit Risk
Mitigation
3,075,040
-
305,049
-
400,327
2,442
4,502,478
-
-
27,157
(*)
The
Bank does not have risk weighted balances neither 35% and 250%.
m) Information according to sector and counterparty types
There is no credit that has been depreciated.
n) Information about value adjustments and provisions
31 December 2022
Opening balance
31 December 2021
Provisions for
the period
Provision
reversals
Other
adjustments
Closing
balance
1. Specific provisions (stage 3)
-
-
-
-
-
2. General provisions (stage 1 and stage 2)
3,175
7,274
(1,184)
-
9,265
31 December 2021
Opening balance
31 December 2020
Provision for
the period
Provision
reversals
Other
adjustments
Closing
balance
1. Specific provisions
-
-
-
-
-
2. General provisions
3,937
1,114
(1,876)
-
3,175
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
39
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
III. Explanation on currency risk
The Bank manages its foreign currency balance sheet by paying maximum attention to comply with the
regulations of the public authorities and by selecting the most appropriate methods to the Bank’s liquidity
and profitability policies.
The position limit regarding the foreign currency risk is determined as parallel to the net foreign currency
position standard rate. As of December 31, 2022, the Bank has a net foreign currency short position of TL
1,452,617 (31 December 2021: 580,106 TL), consisting of TL 1,596,173 on balance sheet short position (31
December 2021: TL 555,855) and TL 143,556 off-balance sheet long position (31 December 2021: TL
24,251 long position).
“Standard method”, which is also used for the statutory reporting purposes, is used to measure the Bank’s
foreign currency risk.
The Bank’s effective exchange rates on the date of 31 December 2022 and 31 December 2021 and for the
last five working days of the period announced by the Bank in TL are as follows:
26 December
2022
27 December
2022
28 December
2022
29 December
2022
30 December
2022
USD
18,6592
18,6649
18,6813
18,6964
18,6966
EUR
19,8044
19,8324
19,9087
19,8946
19,8816
GBP
22,4675
22,4831
22,5142
22,4804
22,4663
CHF
20,0001
19,9728
20,0569
20,0770
20,1435
25 December
2021
28 December
2021
29 December
2021
30 December
2021
31 December
2021
USD
11.7278
11.3900
11.8302
12.2219
12.9775
EUR
13.2926
12.8903
13.4000
13.8011
14.6823
GBP
15.6985
15.2412
15.8766
16.3800
17.4530
CHF
12.7537
12.3629
12.8722
13.2769
14.1207
The arithmetical average of the Bank’s main foreign currency purchase rates for the last 30 days before the
balance sheet date are listed below:
a) Exposure to foreign currency risk
10% percent depreciation of the TL against the following currencies as at 31 December 2022 and 31
December 2021 would have increased or decreased equity and profit or loss (excluding tax effects) by the
amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain
constant.
Current Period
Prior Period
Income Statement
Equity
(*)
Income Statement
Equity
(*)
USD
6,778
6,778
(4,398)
(4,398)
EUR
7,773
7,773
2,499
2,499
Other foreign currencies
(195)
(195)
(526)
(526)
Total, net
14,356
14,356
(2,425)
(2,425)
(*)
Equity effect includes profit/loss effect.
Monthly average purchase rate
Current Period
Prior Period
USD
18,6345
13,5281
EUR
19,6922
15,2931
GBP
22,6516
17,9545
CHF
19,9127
14,6473
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
40
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
b) Information on currency risk of the Bank
Current Period
Euro
USD
Other FC
Total
Assets
Cash (Cash in Vault, Effectives, Cash in Transit, Cheques Purchased)
and Balances with Central Bank of Turkey
(****)
2,543,024
126,802
-
2,669,826
Banks
(****)
3,629
1,414
2,871
7,914
Financial Assets at Fair Value Through Profit or Loss
-
-
-
-
Interbank Money Market Placements
-
-
-
-
Financial Assets at Fair Value Through Other Comprehensive Income
-
-
-
-
Loans
(****)
870,806
340,907
-
1,211,713
Investments in Associates, Subsidiaries and Joint Ventures
-
-
-
-
Financial Assets Measured at Amortized Cost
-
-
-
-
Derivative Financial Assets Held for Risk Management
-
-
-
-
Tangible Assets
-
-
-
-
Intangible Assets
-
-
-
-
Other Assets
(**)
1,352,465
233
153
1,352,851
Total Assets
4,769,924
469,356
3,024
5,242,304
Liabilities
Bank Deposits
-
-
-
-
Foreign Currency Deposits
487,805
230,705
5,877
724,387
Funds From Interbank Money Market
-
-
-
-
Funds Borrowed From Other Financial Institutions
5,491,652
123,428
-
5,615,080
Marketable Securities Issued
-
-
-
-
Miscellaneous Payables
102,655
1,445
947
105,047
Derivative Financial Liabilities Held for Risk Management
-
-
-
-
Other Liabilities
250,079
315
13
250,407
Total Liabilities
6,332,191
355,893
6,837
6,694,921
Net On-Balance Sheet Position
(1,562,267)
113,463
(3,813)
(1,452,617)
Net Off-Balance Sheet Position
(*)
1,639,992
(45,679)
1,860
1,596,173
Derivative Assets
6,587,192
7,394,179
3,719
13,985,090
Derivative Liabilities
4,947,200
7,439,858
1,859
12,388,917
Non-Cash Loans
(***)
288,337
201,659
24,309
514,305
Net Position
77,725
67,783
(1,953)
143,556
Prior Period
Total Asset
2,658,112
447,993
1,449
3,107,554
Total Liabilities
3,479,774
205,805
2,081
3,687,660
Net On-Balance Sheet Position
(821,662)
242,188
(632)
(580,106)
Net Off-Balance Sheet Position
(*)
846,648
(286,169)
(4,624)
555,855
Derivative Assets
1,310,430
1,424,502
1
2,734,933
Derivative Liabilities
463,782
1,710,671
4,625
2,179,078
Non-Cash Loans
(***)
149,916
137,462
17,923
305,301
Net Position
24,986
(43,981)
(5,256)
(24,251)
(*)
Indicates the net amount of derivative financial assets and liabilities. Spot foreign exchange buy and sell transactions shown
under “Asset purchase commitments” in the financial statements are included in the “Net off-balance position”. Derivative
financial assets and liabilities include accruals amounting to TL 478,043 and TL 268,264 respectively.
(**)
Spot foreign currency purchase / sale transactions accruals are not included in "Other assets and liabilities" items. Foreign
currency prepaid expenses amounting to TL 9 is excluded from other assets. Payables from spot foreign exchange
buying/selling transactions do not include 254 TL expense accruals. Other assets also do not include foreign currency prepaid
expenses amounting to TL 158.
(***)
There is no impact on net off- balance sheet position.
(****)
It does not include the expected loss provisions of TL 7,582.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
41
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
IV. Explanations on Interest Rate Risk
The interest rate sensitivity of assets, liabilities and off-balance sheet items are evaluated quarterly at Asset-
Liability Committee meetings.
The Bank’s interest rate risk is measured by using the standard method. The Bank provides information to
its main shareholder Deutsche Bank AG for their, Value at Risk (VAR), risk measurement methods and
performs sensitivity analyses.
Standard method measurements are performed monthly by using the maturity distribution.
At the time of the computations on daily basis sensitivity analysis, interest rate risk of FC and TL trading
and available for sale financial assets and interest rate risk of forward exchange transactions are measured
in the Bank’s portfolio.
1. Interest rate sensitivity of assets, liabilities and off balance sheet items
(Based on repricing dates)
Current Period
Up to 1
Month
1-3
Months
3-12
Months
1-5
Years
5 Years
and Over
Non-Interest
Bearing
Total
Assets
Cash and Balances with the Central
Bank of Turkey
(***)
382,012
-
-
-
-
2,663,963
3,045,975
Banks
(***)
18
-
-
-
-
8,812
8,830
Financial Assets at Fair Value through
Profit/Loss
5,617
1
57,886
2,363,635
1
-
2,427,140
Money Market Placements
(***)
-
-
-
-
-
-
-
Financial Assets at Fair Value through
Other Comprehensive Income
-
-
-
-
-
-
-
Loans and Receivables
(***)
130,126
1,143,589
2,641,817
-
-
(706)
3,914,826
Financial assets Measured at Amortized
Cost
-
-
-
-
-
-
-
Other Assets
(*) (***)
-
-
-
-
-
2,009,452
2,009,452
Total Assets
517,773
1,143,590
2,699,703
2,363,635
1
4,681,521
11,406,223
Liabilities
Bank Deposits
320,058
-
-
-
-
120,059
440,117
Other Deposits
492,753
-
-
-
-
1,255,815
1,748,569
Money Market Funds
160,304
-
-
-
-
-
160,304
Miscellaneous Payable
-
-
-
-
-
586,618
586,618
Securities Issued
-
-
-
-
-
-
-
Funds Borrowed
687,901
726,962
4,482,341
-
-
-
5,897,204
Other Liabilities
(**)
-
-
-
-
-
2,573,411
2,573,411
Total Liabilities
1,661,016
726,962
4,482,341
-
-
4,535,904
11,406,223
On Balance Sheet Long Position
-
416,628
-
2,363,635
1
145,617
2,925,881
On Balance Sheet Short Position
(1,143,243)
-
(1,782,638)
-
-
-
(2,952,881)
Off-Balance Sheet Long Position
13,638,566
4,209,252
4,161,545
-
-
-
22,009,363
Off-Balance Sheet Short Position
13,657,055
4,145,005
3,939,072
-
-
-
21,741,132
Off-Balance Sheet Open Interest
Sensitive
(****)
(18,489)
64,247
222,473
-
-
-
268,231
Total Open Interest Sensitive
(1,161,732)
480,875
(1,560,165)
2,363,635
1
145,617
268,231
(
*
)
Tangible assets amounting to TL 67,487, intangible assets amounting to TL 12,224, derivative financial assets amounting to TL 478,043
and other assets amounting to TL 1,451,698 .
(**)
Equity amounting to TL 1,819,516 ,provisions amounting to TL 292,419, derivative instruments at fair value through profit/loss amounting
to TL 268,264 ,lease liabilities amounting to TL18,250 ,tax liability amounting to TL 137,423 and deferred tax liability amounting to TL
37,539 shown in the other liabilities line.
(***)
Expected loss provisions are netted off with the related balance sheet items and are presented in the non-interest bearing column.
(****)
It includes term asset purchase commitments.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
42
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
1. Interest rate sensitivity of assets, liabilities and off balance sheet items (continued)
Prior Period
Up to 1
Month
1-3
Months
3-12
Months
1-5
Years
5 Years and
Over
Non-
Interest
Bearing
Total
Assets
Cash and Balances with the Central Bank of
Turkey
210.867
-
-
-
-
1.542.767
1.753.634
Banks
(***)
120.732
-
-
-
-
6.169
126.901
Financial Assets at Fair Value through
Profit/Loss
-
5.648
-
1
585
-
6.234
Money Market Placements
110.041
-
-
-
-
(33)
110.008
Financial Assets at Fair Value through Other
Comprehensive Income
-
25.583
194.684
70.259
-
-
290.526
Loans and Receivables
(***)
385.013
716.946
1.745.517
44.099
-
(574)
2.891.001
Financial assets Measured at Amortized Cost
-
-
-
-
-
-
-
Other Assets
(
*) (***)
-
-
-
-
-
728.049
728.049
Total Assets
826.653
748.177
1.940.201
114.359
585
2.276.378
5.906.353
Liabilities
Bank Deposits
75.014
-
-
-
-
215.561
290.575
Other Deposits
168.771
-
-
-
-
1.030.184
1.198.955
Money Market Funds
30.448
-
-
-
-
-
30.448
Miscellaneous Payable
-
-
-
-
-
61.957
61.957
Securities Issued
-
-
-
-
-
-
-
Funds Borrowed
140.050
513.881
2.296.313
44.047
-
-
2.994.291
Other Liabilities
(**)
-
-
-
-
-
1.330.127
1.330.127
Total Liabilities
414.283
513.881
2.296.313
44.047
-
2.637.829
5.906.353
On Balance Sheet Long Position
412.370
234.296
-
70.312
585
-
717.563
On Balance Sheet Short Position
-
-
(356.112)
-
-
(361.451)
(717.563)
Off-Balance Sheet Long Position
2.140.228
968.202
271.169
178.045
-
-
3.557.644
Off-Balance Sheet Short Position
2.163.661
993.666
237.477
177.926
-
-
3.572.730
Off-Balance Sheet Open Interest Sensitive
(****)
(23.433)
(25.464)
33.692
119
-
-
(15.086)
Total Open Interest Sensitive
388.937
208.832
(322.420)
70.431
585
(361.451)
(15.086)
(*)
Tangible assets amounting to TL 50,341, intangible assets amounting to TL 4,436, derivative financial assets amounting to TL
167,092, deferred tax assets amounting to TL 7,656 and other assets amounting to TL 498,524 are shown in other assets.
(**)
Equity amounting to TL 986,391 provisions amounting to TL 127,603, derivative instruments at fair value through profit/loss
amounting to TL 175,370, lease liabilities amounting to TL 15,331, tax liability amounting to TL 25,432.
(***)
Expected loss provisions are netted with related balance sheet items and remained in the interest-free column.
(****)
It includes term asset purchase commitments.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
43
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
2 Average interest rates on monetary financial instruments
Current Period
%EUR
%USD
%Yen
%TL
Assets
Cash and Balances with the Central Bank of Turkey
-
-
-
-
Banks
-
-
-
9,38
Financial Assets at Fair Value through Profit/Loss
-
-
-
19,41
Money Market Placements
-
-
-
-
Financial Assets at Fair Value through Other Comprehensive
Income
-
-
-
-
Loans and Receivables
6,29
9,09
-
20,10
Financial Assets Measured at Amortized Cost
-
-
-
-
Liabilities
Bank Deposits
-
-
-
3,25
Other Deposits (*)
-
-
-
6,77
Money Market Funds
-
-
-
9,00
Miscellaneous Payable
-
-
-
-
Securities Issued
-
-
-
-
Funds Borrowed from other Financial Institutions
2,36
4,40
-
7,90
(*) Demand deposit balances are not taken into account in the calculation of the average interest rate.
Prior Period
%EUR
%USD
%Yen
%TL
Assets
Cash and Balances with the Central Bank of Turkey
-
-
-
8,50
Banks
-
0,15
-
12,75
Financial Assets at Fair Value through Profit/Loss
-
-
-
19,82
Money Market Placements
-
-
-
13,41
Financial Assets at Fair Value through Other Comprehensive
Income
-
-
-
17,74
Loans and Receivables
1,89
2,50
-
21,44
Financial aAsets Measured at Amortized Cost
-
-
-
-
Liabilities
Bank Deposits
-
-
-
6,50
Other Deposits (*)
-
0,25
-
9,80
Money Market Funds
-
-
-
14,00
Miscellaneous Payable
-
-
-
-
Securities Issued
-
-
-
-
Funds Borrowed from other Financial Institutions
(0,17)
-
-
12,96
(*) Demand deposit balances are not taken into account in the calculation of the average interest rate.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
44
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
V. Explanation on the position risk of securities
None (31 December 2021: None.)
VI. Explanations on liquidity risk management and liquidity coverage ratio
The general principles and related implementation methods with respect to liquidity and financial emergency
procedures are determined within the scope of “Deutsche Bank Turkey Local Treasure Policy”.
The Bank calculates liquidity adequacy ratio and reports to BRSA on a weekly basis as of 1 January 2015 in
accordance with the “Measurement and Assessment of Liquidity Adequacy of Banks” issued in the Official
Gazette numbered 28948 and dated 21 March 2014. In 2022, the liquidity adequacy ratio of the Bank at least
80% asset denominated with foreign currency and at least 100% total asset and liabilities.
The resources of the current liquidity risk; whether the necessary precautions have been taken,
whether the Board of Directors sets limits on the funds available to meet the urgent liquidity
requirements and to be able to pay borrowings when they become due
Liquidity risk is managed by considering the main criteria such as (1) the expected cash flows at related time
intervals, (2) the possibility and capacity of borrowing from the market, (3) the credit quality of the assets on
the balance sheet.
In addition to the compliance with the legal limitations regarding the liquidity, the Bank monitors from the
cash flow reports that there are matching borrowing opportunities with the cash out-flows within the same
time interval.
The ultimate responsibility for liquidity risk management rests on the Bank’s board of directors. The Bank’s
Asset and Liability Committee (ALCO) manages the liquidity adequacy and liquidity risk profile and control
the executive committee. During the regular ALCO meetings, the liquidity position that forms the permanent
agenda and liquidity risks are discussed.
Liquidity risk management is a governance function to be tightly linked to the minimum obligation to report
to any of the business units and a robust liquidity risk as well as risk management policy for the management
of Basel. DB Group Treasury Department, a comprehensive and robust liquidity risk group and their level of
participation of all concerned parties is the legal entity responsible for coordinating the management process.
Moreover, the application serves as the central point of the function to the questions asked in the framework
of WB’s liquidity risk.
The Board of Directors is to ensure the Group’s liquidity risk management strategy with determination and
implementation of a business strategy and liquidity risk for the bank within a tight fit. ALCO reports ensures
the transparency of local senior management level of liquidity risk issues. The Treasury Department and the
General Manager, and all liquidity risk management of the banking regulatory agencies’ responsibilities is
to answer questions posed by the audit authority or other agencies authorized to discuss the issue with these
institutions. All reports prepared for the regulatory agencies related to the Bank’s internal risk management
model is being prepared by the Liquidity Risk Control or Finance department. Regarding the public
disclosure of information relating to liquidity risk, Deutsche Bank is subject to prior approval by the public
lighting policies and guidelines.
The Treasury Department, Deutsche Bank’s liquidity risk profile, the DB Group prepares and checks daily,
policies that are needed to keep the Board of Directors to determine the risk tolerance level and to empowered
to take measures. All business units comply with the liquidity risk limits and are required to comply with the
Treasury's policies. Employees give them adequate training in the subject of liquidity risk; liquidity risk
limits that affect their activities are responsible to inform the Treasury Department’s measures.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
45
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VI. Explanations on liquidity risk management and liquidity coverage ratio (continued)
ALCO; in accordance with the Bank’s risk profile and risk appetite and capitalization requirements, it is
responsible for the observance of the harmony between liquidity and funding needs. Capital is monitored by
liquidity and funding profiles, and is monitored every three months to revise the legal limits and / or decide
on measures to be taken in order to avoid violation of the Bank’s internal limits. Group acts in accordance
with the parameters set by the Capital and Risk Committee of the DB Group and manages local resources in
line with the standards.
At the country level, the daily funding, liquidity and cash management, Treasury and Corporate Banking and
Securities acting according to the parameters set by ALCO has been undertaken by Global Markets Unit.
Continuous liquidity management is one of the issues discussed regularly in the ALCO meeting. In each
ALCO meeting, limits in the use of the Bank is submitted to the committee for adaptation to changes in
policy and Local Treasure risks. Another issue to be discussed among active subjects is changes to be made
in the liability profile, if needed because of the stress test results / changes to be made in the liability profile,
can take place by reviewing the evaluation of additional funding capacity and other potential sources of
liquidity.
Deutsche Bank A.Ş., from the DB Group contains ordinary and funding lines which provide funding in
stressful situations. Treasury conducts stress tests on a monthly basis at Group level; These tests - DB Group,
with predetermined stress situation (market-wide, bank-specific or a combination of both) makes it possible
to fulfil the responsibility for the Deutsche Bank provided to Turkey funding line. The process of this line is
to ensure that a reliable funding source in each case is provided.
In liquidity stress testing, management of liquidity risk is one of the key tools used to assess the short-term
liquidity position. In liquidity stress testing, the Bank determines some time to analyse the ability to withstand
stress scenarios throughout the planned 8-week. To determine the future potential liquidity crunch such as
adjusting limit of MCO; the size of the branch line between funding or limit is an important factor for
determining appropriate countermeasures.
Analysis contains funding markets under stress, withdrawal of deposits, additional collateral obligations; it
covers all local liquidity of the relevant factors, such as funding requirements arising from off balance sheet
commitments and evaluates the balance capacity against the intra-group funding line. First, it is based on
specific parameters of the DB Group, it ensures that local characteristics are reflected in the re-adjusted and
is necessary and appropriate for Deutsche Bank Turkey. Local liquidity stress test assumptions are reviewed
on an annual basis. Liquidity stress test analysis is performed on a monthly basis by the Risk Management
and Audit Committee and are submitted there; except they are submitted to ALCO every three months and
are negotiated.
Deutsche Bank Group, in the event of a market-related stress or DB, in order to ensure the ability to continue
its operations; the Treasury Department and all banks have the responsibility of creating emergency wide
funding plans. It is said that emergency procedures will be applied in the case of liquidity stress.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
46
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VI. Explanations on liquidity risk management and liquidity coverage ratio (continued)
Overall, the Bank’s business model adapts to the market and the structural changes occurring on average on
funding conditions has the flexibility to adapt over a period of eight weeks. This section includes a description
of the measures to be implemented in the event of stress tactics.
In the case of stress situation exceeding eight weeks, the reduction of the balance sheet can be funded by
additional strategic measures such as increasing the stable funding sources as much as possible. Such a
situation is likely to affect the Bank as a whole, DB Group Treasury Officer will be responsible to ensuring
consistency between the regional and local processes and the DB Group contingency plan and the DB Group
Financial Resource Management Committee, taking into account local legislation and other issues and
constraints.
Current Period
Total Unweighted
Value (average)
(1)
Total Weighted
Value (average)
(*)
TL+FC
FC
TL+FC
FC
High Quality Liquid Assets
High Quality Liquid Assets
2,622,561
2,034,498
Cash Outflows
Retail and Small Business Customers, of which;
117,864
59,723
11,786
5,972
Stable Deposits
-
-
-
-
Less Stable Deposits
117,864
59,723
11,786
5,972
Unsecured wholesale funding , of which;
3,576,276
1,357,603
2,148,946
673,488
Operational Deposits
257,329
-
64,332
-
Non-operational Deposits
2,367,239
1,168,108
1,139,970
483,993
Other Unsecured Funding
951,708
189,495
944,644
189,495
Secured Funding
-
-
-
-
Other cash outflows, of which;
52,682
2,697,942
52,620
2,697,945
Derivatives cash outflow and liquidity needs related to market
52,576
2,697,942
52,578
2,697,945
Obligations related to structured financial products
-
-
-
-
Commitments related to debts to financial markets and other
off-balance sheet obligations
106
-
42
-
Other revocable off-balance sheet commitments and contractual
247,616
91,039
12,381
4,552
Other irrevocable or conditionally revocable commitments
40,461
-
2,038
-
Total Cash outflows
-
-
2,227,771
3,381,957
Cash Inflows
Secured Lending
-
-
-
-
Unsecured Lending
835,558
225,469
835,558
225,469
Other Cash Inflows
115,378
3,991,095
115,378
3,991,095
Total Cash Inflows
950,936
4,216,564
950,936
4,216,564
Max limit applied values
Total HQLA Stock
2,622,561
2,034,498
Total Net Cash Outflows
1,285,680
845,488
Liquidity Coverage Ratio (%)
203,98
240,63
(*)
Simple arithmetic average of the values calculated by taking the simple weekly arithmetic average for the last three months.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
47
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VI. Explanations on liquidity risk management and liquidity coverage ratio (continued)
Prior Period
Total Unweighted
Value (average)
(*)
Total Weighted Value
(average)
(*)
TL+FC
FC
TL+FC
FC
High Quality Liquid Assets
High Quality Liquid Assets
2.003.539
1.392.801
Cash Outflows
Retail and Small Business Customers, of which;
92,180
44,372
9,218
4,437
Stable Deposits
-
-
-
-
Less Stable Deposits
92,180
44,372
9,218
4,437
Unsecured wholesale funding , of which;
2,522,452
569,769
1,813,774
285,252
Operational Deposits
187,688
-
46,922
-
Non-operational Deposits
1,394,021
495,588
829,348
211,071
Other Unsecured Funding
940,743
74,181
937,504
74,181
Secured Funding
-
-
-
-
Other cash outflows, of which;
1,230,946
764,729
1,230,946
764,731
Derivatives cash outflow and liquidity needs related to market
1,230,946
764,729
1,230,946
764,731
Obligations related to structured financial products
-
-
-
-
Commitments related to debts to financial markets and other off- balance sheet
obligations
-
-
-
-
Other revocable off-balance sheet commitments and contractual obligations
150,547
77,299
7,527
3,865
Other irrevocable or conditionally revocable commitments
84,984
-
4,249
-
Total Cash outflows
3,065,714
1,058,285
Cash Inflows
Secured Lending
-
-
-
-
Unsecured Lending
1,019,234
87,430
1,019,234
87,430
Other Cash Inflows
1,243,655
843,698
1,243,655
843,698
Total Cash Inflows
2,262,889
931,128
2,262,889
931,128
Max limit applied values
Total HQLA Stock
2,003,539
1,392,801
Total Net Cash Outflows
916,670
381,200
Liquidity Coverage Ratio (%)
218.57
365,37
(1)
Simple arithmetic average of the values calculated by taking the simple weekly arithmetic average for the last three months.
The “Liquidity Coverage Ratio” is calculated within the framework of the “Regulation On Calculation of
Bank’s Liquidity Coverage Ratio” published by the BRSA in order to ensure that banks have high quality
liquid asset stocks to meet the net cash inflows that may occur in the short-term. The level of such ratio is
directly affected by the level of liquid assets that the Bank is able to convert at any time and without any
collateral, and the possible net cash inflows and outflows from the Bank’s assets, liabilities and off-balance
sheet transactions.
Banks and the CBRT experience periodic increases in the liquidity coverage ratio in weeks when high balance
is maintained in foreign currency free accounts. On the other hand, fluctuations may occur in the liquidity
coverage ratio in weeks when the share of institutional and bank-originated funds in funding sources
increases, and long-term foreign funds enter a one-month maturity window. In 2022, the Bank's liquidity
coverage ratio decreased due to the decrease in cash inflows in Turkish Lira, while it decreased due to the
increase in cash outflows in foreign currency compared to 2021.
The Bank's high-quality liquid asset stock consists of bonds issued by the Ministry of Treasury and Finance
of the Republic of Turkey, which have not been subject to repurchase agreements or collateral, as well as
accounts held at the CBRT. The Bank's primary funding sources are loans and deposits received.
The most important items among derivative products, mostly used for hedging purposes, are forward
transactions for exchange rate risk and swap transactions for interest rate risk.
The Bank's high-quality liquid assets consist of accounts held at the CBRT (83%) and securities issued by
the Ministry of Treasury and Finance of the Republic of Turkey (17%). Funding sources are mainly
distributed among deposits (36%), borrowings from banks (37%), and off-balance-sheet liabilities (3%).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
48
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VI. Explanations on liquidity risk management and liquidity coverage ratio (continued)
1. The matching of the payments, assets and liabilities and the interest rates, and the possible impact of
the current mismatch on the profitability of the Bank
The Bank’s assets and liabilities carry positive interest earnings. Government debt securities which are
classified in financial assets at fair value through profit or loss are most liquid securities that are liquidated
regarding changes in market conditions.
2 . Internal and external resources that meets the short and long term liquidity needs of the Bank and
unutilised significant liquidity resources
The Bank monitors that the maturity matching of the assets and liabilities are kept. The Bank keeps sufficient
liquid assets to meet liquidity needs caused by the fluctuations in the market.
Liquidity coverage ratios are calculated weekly starting from January 1, 2015, in accordance with the
"Regulation on Calculation of Liquidity Coverage Ratio for Banks" published in the Official Gazette
numbered 28948 on March 21, 2014. For 2022, the liquidity coverage ratio must be at least 80% in foreign
currency assets and liabilities, and at least 100% in total assets and liabilities. The weeks with the highest and
lowest liquidity coverage ratios calculated for the last three months in the periods of December 31, 2022, and
December 31, 2021 are as follows.
Current Period
Prior Period
FC
FC + TL
FC
FC + TL
Min.
196,32%
142,58%
171,43%
189,36%
Week
21 December 2022
14 December 2022
15 October 2021
10 December 2021
Max.
318,98%
549,90%
660,44%
344,76%
Week
26 October 2022
5 October 2022
3 December 2021
29 October 2021
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
49
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VI. Explanations on liquidity risk management and liquidity coverage ratio (continued)
3. The assessment of the amounts and resources of the Bank’s cash flows
As explained above, the Bank has sufficient cash and cash inflows in order to be able to timely meet the cash
outflows.
Maturity analysis of residual values of contractual financial liabilities:
Current period
Carrying
Value
Gross Nominal
Outflow
Demand
Up to 1
Month
1-3 Months
3-12 Months
1-5 Years
5 Years
and
Over
Bank Deposits
440,117
440,117
120,059
320,058
-
-
-
-
Other Deposits
1,748,569
1,748,660
1,255,816
492,844
-
-
-
-
Funds Borrowed
from other
Financial
Institutions
5,897,204
5,960,881
-
688,009
728,554
4,544,318
-
-
Interbank Money
Market Funds
160,304
160,304
-
160,304
-
-
-
-
Miscellaneous
Payables
586,618
586,618
586,618
-
-
-
-
-
Financial Lease
Liabilities
18,250
18,250
-
740
537
7,996
8,977
-
Total
8,851,062
8,914,830
1,962,493
1,661,955
729,091
4,552,314
8,977
-
Prior period
Carrying
Value
Gross Nominal
Outflow
Demand
Up to 1
Month
1-3 Months
3-12
Months
1-5 Years
5 Years
and
Over
Bank Deposits
290,575
290,575
215,561
75,014
-
-
-
-
Other Deposits
1,198,955
1,199,043
1,030,184
168,859
-
-
-
-
Funds Borrowed
from other
Financial
Institutions
2,994,291
2,992,378
-
140,149
513,534
2,294,569
44,126
-
Interbank Money
Market Funds
30,448
30,448
-
30,448
-
-
-
-
Miscellaneous
Payables
61,957
61,957
61,957
Financial Lease
Liabilities
15,331
15,331
-
450
437
5,034
9,410
-
Total
4,591,557
4,589,732
1,307,702
414,920
513,971
2,299,603
53,536
-
The above table shows the undiscounted estimated cash outflows of the financial liabilities in accordance
with their contracts.
(*) Equity amount is TL 1,819,516 as of December 31, 2022 (December 31, 2021: TL 986,391)
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
50
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VI. Explanations on liquidity risk management and liquidity coverage ratio (continued)
4. Maturity analysis of assets and liabilities according to remaining maturities
Current period
Demand
Up to 1
Months
1-3
Months
3-12
Months
1-5
Years
5 Years
and
Over
Unallocated
Total
Assets
Cash and Balances with the Central
Bank of Turkey
(***)
1,575,783
1,476,056
-
-
-
-
(5,864)
3,045,975
Banks
(***)
8,815
18
-
-
-
-
(3)
8,830
Financial Assets At Fair Value Through
Profit or Loss
-
5,617
1
57,886
2,363,635
1
-
2,427,140
Interbank Money Market Placements
(***)
-
-
-
-
-
-
-
-
Financial Assets At Fair Value Through
Other Comprehensive Income
-
-
-
-
-
-
-
-
Loans and Receivables
(***)
-
130,126
1,143,589
2,641,817
-
-
(706)
3,914,826
Financial Assets Measured at Amortized
Cost
-
-
-
-
-
-
-
-
Other Assets
(*) (***)
-
4,424
43,226
94,948
-
-
1,866,854
2,009,452
Total Assets
1,584,598
1,616,241
1,186,816
2,794,651
2,363,635
1
1,860,281
11,406,223
Liabilities
Bank Deposits
120,059
320,058
-
-
-
-
-
440,117
Other Deposits
1,255,816
492,753
-
-
-
-
-
1,748,569
Funds Borrowed from other Financial
Institutions
-
687,901
726,962
4,482,341
-
-
-
5,897,204
Interbank Money Market Funds
-
160,304
-
-
-
-
-
160,304
Miscellaneous Payables
586,618
-
-
-
-
-
-
586,618
Other Liabilities
(**)
198,246
185,557
55,980
260,573
-
-
1,857,055
2,573,411
Total Liabilities
2,160,739
1,846,573
782,942
4,758,914
-
-
1,857,055
11,406,223
Liquidity Gap / Surplus
(576,141)
(230,232)
403,874
(1,964,263)
2,363,635
1
3,226
-
Net Off Balance Sheet Position
(****)
Derivative Financial Assets
-
13,638,566
4,209,252
4,161,545
-
-
-
22,009,363
Derivative Financial Liabilities
-
13,657,055
4,145,005
3,939,072
-
-
-
21,741,132
Non-Cash Loans
-
63,154
157,617
209,416
181,528
213,566
-
825,281
Prior Period
Total Assets
1,021,529
1,358,167
767,730
2,010,348
114,359
585
633,635
5,906,353
Total Liabilities
1,358,503
555,522
567,509
2,381,850
47,578
-
986,391
5,906,353
Liquidity (Gap) / Surplus
(336,974)
802,645
191,221
(371,502)
66,781
585
(352,756)
-
Net Off Balance Sheet Position(
****)
Derivative Financial Assets
-
2,140,228
968,202
271,169
178,045
-
-
3,557,644
Derivative Financial Liabilities
-
2,163,661
993,666
237,477
177,926
-
-
3,572,730
Non-Cash Loans
-
12,425
19,178
186,759
102,393
128,693
-
449,448
(*)
Tangible assets amounting to TL 67,487, intangible assets amounting to TL 12,224, derivative financial assets amounting to TL 478,043
and other assets amounting to TL 1,451,698 are presented in the other assets.
(**)
Equity amounting to TL 1,819,516, provisions amounting to TL 292,419, derivative financial liabilities at fair value through profit or
loss amounting to TL 268,264, lease liabilities amounting to TL 18,250, tax liabilities amounting to TL 137,423 and deferred tax
liabilities amounting to TL 37,539 are presented in the other liabilities.
(***)
Expected loss provision is netted with related balance sheet items.
(****)
It includes term asset purchase commitments.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
51
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VI. Explanations on liquidity risk management and liquidity coverage ratio (continued)
5. Contractual maturity analysis of the Bank’s derivative instruments
31 December 2022
Up to 1
month
1-3
months
3-12
months
1-5
years
5 years
and over
Total
Derivative instruments held for trading
Foreign exchange derivatives:
27,038,647
8,354,257
8,100,617
-
-
43,493,521
- Inflow
13,510,209
4,209,252
4,161,545
-
-
21,881,006
- Outflow (-)
13,528,438
4,145,005
3,939,072
-
-
21,612,515
Interest rate derivatives:
-
-
-
-
-
-
- Inflow
-
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
Derivative instruments held for risk
management
Foreign exchange derivatives:
-
-
-
-
-
-
- Inflow
-
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
Interest rate derivatives:
-
-
-
-
-
-
- Inflow
-
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
Total cash inflow
13,510,209
4,209,252
4,161,545
-
-
21,881,006
Total cash outflow
13,528,438
4,145,005
3,939,072
-
-
21,612,515
31 December 2021
Up to 1
month
1-3
months
3-12
months
1-5
years
5 years
and over
Total
Derivative instruments held for trading
Foreign exchange derivatives:
4,143,527
1,961,867
508,646
355,971
-
6,970,011
- Inflow
2,060,245
968,201
271,169
178,045
-
3,477,660
- Outflow (-)
2,083,282
993,666
237,477
177,926
-
3,492,351
Interest rate derivatives:
-
-
-
-
-
-
- Inflow
-
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
Derivative instruments held for risk
management
Foreign exchange derivatives:
-
-
-
-
-
-
- Inflow
-
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
Interest rate derivatives:
-
-
-
-
-
-
- Inflow
-
-
-
-
-
-
- Outflow (-)
-
-
-
-
-
-
Total cash inflow
2,060,245
968,201
271,169
178,045
-
3,477,660
Total cash outflow
2,083,282
993,666
237,477
177,926
-
3,492,351
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
52
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VII. Explanations on Leverage Ratio
The leverage ratio of the bank has decreased as of 31 December 2022 compared to 31 December 2021 due
to the increase in the total risk amount.
On-Balance Sheet Items
Current Period
(*)
Prior Period
(*)
1 On-balance sheet items (excluding derivatives and SFTs, but including collateral)
11,838,420
5,323,358
2 (Assets that are deducted from core capital)
(25,843)
(15,496)
3 Total on balance sheet exposures ( Sum of 1
st
and 2
nd
rows)
11,812,577
5,307,862
Derivative exposures and credit derivatives
4 Replacement cost associated with derivative financial instruments and credit
derivatives
535,561
79,451
5 The potential amount of credit risk with derivative financial instruments and credit
derivatives
216,260
72,701
6 The total amount of risk on derivative financial instruments and credit derivatives
(Sum of 4
th
and 5
th
rows)
751,821
152,152
Investment securities or commodity collateral financing transactions
7 The amount of risk investment securities or commodity collateral financing
transactions (Excluding on balance sheet items)
-
-
8 Risk amount of exchange brokerage operations
-
-
9 Total risks related with securities or commodity financing transactions
(Sum of 7
th
and 8
th
rows)
-
-
Off -Balance Sheet Items
10 Gross notional amount of off-balance sheet items
10,372,279
996,903
11 (Adjustments for conversion to credit equivalent amounts)
(4,776,358)
(277,434)
12 The total risk of off-balance sheet items (Sum of 10
th
and 11
th
rows)
5,595,921
719,469
Capital and Total Exposures
13 Core Capital
1,738,849
952,633
14 Total Exposures (sum of 3
th
, 6
th
,9
th
and 12nd rows)
18,160,319
6,179,483
Leverage Ratio
15 Leverage Ratio
9,58
15.58
(*)
Three months average values.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
53
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VIII. Explanations regarding the presentation of financial assets and liabilities at their fair values
a. Information on fair value of financial assets and liabilities
It has been assumed that fair value of financial assets and liabilities at the Bank’s financial statement which
have not been presented by fair value approximates their carrying value due to short-term maturity structure.
The fair value of loans is calculated by finding discounted cash flows using current interest rates. The estimated
fair value of banks, funds and deposits provided from other financial institutions is calculated by determining
the cash flows discounted using current interest rates. The following table summarizes the carrying values and
fair values of financial assets and liabilities. The carrying value represents the acquisition costs and
accumulated profit share accruals of corresponding financial assets or liabilities.
31 December 2022
Carrying value
Fair value
Current Period
Current Period
Financial Assets
3,924,365
3,841,999
Money market placements
-
-
Banks
8,833
8,833
Financial Assets at Fair Value Through Profit or Loss
-
-
Financial Assets at Fair Value Through Other Comprehensive Income
-
-
Loans
3,915,532
3,833,166
Financial Liabilities
8,672,508
8,668,742
Deposits from Banks
440,117
440,117
Other Deposits
1,748,569
1,748,569
Funds Borrowed
5,897,204
5,893,438
Marketable securities issued
-
-
Miscellaneous payables
586,618
586,618
31 December 2021
Carrying value
Fair value
Prior Period
Prior Period
Financial Assets
3,419,091
3,389,533
Money market placements
110,041
110,041
Banks
126,949
126,949
Financial Assets at Fair Value Through Profit or Loss
290,526
290,526
Financial Assets at Fair Value Through Other Comprehensive Income
-
-
Loans
2,891,575
2,862,017
Financial Liabilities
4,545,778
4,549,234
Deposits from Banks
290,575
290,575
Other Deposits
1,198,955
1,198,955
Funds Borrowed
2,994,291
2,997,747
Marketable securities issued
-
-
Miscellaneous payables
61,957
61,957
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
54
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
VIII. Explanations regarding the presentation of financial assets and liabilities at their fair values (continued)
b. Classification of fair value
TFRS 7, Financial instruments: Disclosures requires the classification of fair value measurements into a fair
value hierarchy by reference to the observability and significance of the inputs used in measuring fair value of
financial instruments measured at fair value to be closed. This classification basically relies on whether the
relevant inputs are observable or not. This distinction brings about a fair value measurement classification
generally as follows:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets of
liabilities;
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3: Fair value measurements using inputs for the assets or liability that are not based on observable market
data (unobservable inputs
This classification of fair value measurements of financial assets and liabilities measured at fair value is as follows:
31 December 2022
Level 1
Level 2
Level 3
Total
Financial Assets at Fair Value Through Profit or Loss
2,427,140
-
-
2,427,140
Government Debt Securities
2,427,140
-
-
2,427,140
Share Certificates
-
-
-
-
Other Securities
-
-
-
-
Financial Assets at Fair Value Through Other Comprehensive Income
-
-
-
-
Government Debt Securities
-
-
-
-
Share Certificates
-
-
-
-
Other Securities
-
-
-
-
Derivative Financial Assets
-
478,043
-
478,043
Derivative Financial Assets at Fair Value Through Profit or Loss
-
478,043
-
478,043
Total Assets
2,427,140
478,043
-
2,905,183
Derivative Financial Liabilities
-
268,264
-
268,264
Derivative Financial Liabilities at Fair Value Through Profit or Loss
-
268,264
-
268,264
Total Liabilities
-
268,264
-
268,264
31 December 2021
Level 1
Level 2
Level 3
Total
Financial Assets at Fair Value Through Profit or Loss
6,234
-
-
6,234
Government Debt Securities
6,234
-
-
6,234
Share Certificates
-
-
-
-
Other Securities
-
-
-
-
Financial Assets at Fair Value Through Other Comprehensive Income
290,526
-
-
290,526
Government Debt Securities
290,526
-
-
290,526
Share Certificates
-
-
-
-
Other Securities
-
-
-
-
Derivative Financial Assets
-
167,092
-
167,092
Derivative Financial Assets at Fair Value Through Profit or Loss
-
167,092
-
167,092
Total Assets
296,760
167,092
-
463,852
Derivative Financial Liabilities
-
175.370
-
175.370
Derivative Financial Liabilities at Fair Value Through Profit or Loss
-
175.370
-
175.370
Total Liabilities
-
175.370
-
175.370
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
55
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
IX. Explanation regarding the activities carried out on behalf and account of other parties based on trust
1. Purchasing, selling, custody, management and advisory services which are carried out by the Bank on
behalf of customers
The Bank provides security custody and advisory services to its customers.
2. Whether operations with financial institutions and financial services in the context of transaction
agreements held in trust effect the financial situation of the Bank significantly
The Bank is not involved in trust activities.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
56
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management
Notes and explanations in this section have been prepared in accordance with the Communiqué on
Disclosures about Risk Management to Be Announced to Public by Banks that have been published in
Official Gazette no. 29511 on 23 October 2015 and became effective as of 31 March 2016. Due to usage of
standard approach for the calculation of capital adequacy ratio by the Bank, tables, which have to be prepared
within the scope of internal rating-based (IRB) approach, are not presented.
a. Explanations on Risk Management and Risk Weighted Amount
1. The Bank’s risk management approach
Bank’s Risk management system is assessed as a critical process which includes all units starting from the
Board of Directors level. General strategies regarding Bank’s risk management are given below:
1. Identification of risks,
2. Measuring the risks,,
3. Monitoring of risks,
4. The control and reporting of risks
The basic risk managements that should be evaluated first in our bank are defined below.
1. Credit Risk Management
2. Markets Risk Management (Liquidity, Currency and Interest Risk)
3. Operational Risk Management
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
57
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
1. The Bank’s risk management approach (continued)
The Risk Management Unit is responsible for managing these risks. Risk management is based on risk policy
principles. In the determination of risk management policy and implementation procedures, strategies,
policies and implementation procedures related to the activities of the Bank, volume, quality and complexity
of activities, risk strategy and risk level, risk monitoring and managing capacity, past experience and
performance, The level of expertise in the respective fields and the obligations laid down in its law and other
relevant legislation. It is imperative that the policy and implementation procedures of the management of the
island comply with the changing circumstances. The Board of Directors or the relevant Internal Systems
Officer periodically evaluates the adequacy of these and makes any necessary changes. The Bank sets written
limits for quantifiable risks such as credit risk, market risk, interest rate risk and liquidity risk arising from
its activities and these limits are approved by the Board of Directors. The risk limits are determined together
with the relevant senior management, including the relevant internal systems officer, the risk management
unit manager and the bank general manager. The Board of Directors passes the authority to open credits to
the Credit Committee or to the General Manager in line with the principles set out in the Bank’s Credit
policies and procedures. Risk Management, with its daily limit overrun risk report, And regularly reports to
the Executive Management and the Board of Directors. Measures the impact of the change in the bank’s risk
factor on revenues and expenses. The Bank conducts periodic stress tests and scenario analyses to assess the
impact of unexpected market conditions on core business activities. When necessary, the results of scenario
analysis and stress tests are reflected in policies and limits.
2. General Information on Risk Management and Risk Weighted Amount
Risk Weighted Amount
Minimum
capital
requirement
Minimum
capital
requirement
Current Period
Prior Period
Current
Period
PriorPeriod
1
Credit risk (excluding counterparty credit risk)
3,963,527
3,153,540
317,082
252,283
2
Standardised approach
3,963,527
3,153,540
317,082
252,283
3
Internal rating-based approach
-
-
-
-
4
Counterparty credit risk
523,048
137,142
41,844
10,971
5
Standardised approach for counterparty credit
risk
523,048
137,142
41,844
10,971
6
Internal model method
-
-
-
-
7
Basic risk weight approach to internal models
equity position in the banking account
-
-
-
-
8
Investments made in collective investment companies – look-through
approach
-
-
-
-
9
Investments made in collective investment companies – mandate-based
approach
-
-
-
-
10
Investments made in collective investment companies - 1250% weighted
risk approach
-
-
-
-
11
Settlement risk
-
-
-
-
12
Securitization positions in banking accounts
-
-
-
-
13
IRB ratings-based approach
-
-
-
-
14
IRB Supervisory Formula Approach
-
-
-
-
15
SA/simplified supervisory formula approach
-
-
-
-
16
Market risk
1,037,638
75,790
83,011
6,063
17
Standardised approach
1,037,638
75,790
83,011
6,063
18
Internal model approaches
-
-
-
-
19
Operational risk
665,869
543,138
53,270
43,451
20
Basic Indicator Approach
665,869
543,138
53,270
43,451
21
Standard Approach
-
-
-
-
22
Advanced measurement approach
-
-
-
-
23
The amount of the discount threshold under the equity (subject to a 250%
risk weight)
-
-
-
-
24
Floor adjustment
-
-
-
-
25
Total (1+4+7+8+9+10+11+12+16+19+23+24)
6,190,082
3,909,610
495,207
312,768
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
58
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
b. Connections between Financial Statements and Risk Amounts
1. Differences and matching between the scope of accounting consolidation and legal consolidation
Current Period
a
b
c
d
e
f
g
Carrying values in
financial statments
prepared as per TAS
Amount assessed in
accordance with TAS
under regulatory
consolidation
Carrying values of items in accordance with Turkish Accounting Standards
Credit Risk
Counterparty credit
risk
Securitization
positions
Market Risk
Not subject to
capital
requirements
or subject to
deduction
from capital
Assets
Cash and Balances with the Central
Bank
3,051,839
3,051,839
3,051,839
-
-
-
-
Available-for-Sale Financial Assets
2,427,140
2,427,140
2,427,140
-
-
-
-
Financial assets at fair value through
profit and loss
2,966
2,966
2,966
-
-
-
-
Banks
-
-
-
-
-
-
-
Receivables from Money markets
478,043
478,043
-
478,043
-
-
-
Financial assets available for sale
(net)
3,914,826
3,914,826
3,914,826
-
-
-
-
Loans and receivables
-
-
-
-
-
-
-
Receivables from factoring
-
-
-
-
-
-
-
Investments held to maturity (net)
-
-
-
-
-
-
-
Subsidiaries (net)
-
-
-
-
-
-
-
Associates (net)
-
-
-
-
-
-
-
Jointly controlled entities (joint
ventures) (net)
-
-
-
-
-
-
-
Finance lease receivables
-
-
-
-
-
-
-
Derivative financial liabilities held
for risk management
-
-
-
-
-
-
-
Tangible Assets (net)
67,487
67,487
67,487
-
-
-
-
Intangible Assets (net)
12,224
12,224
-
-
-
-
12,224
Real estate for investment purpose
(net)
-
-
-
-
-
-
-
Tax asset
-
-
-
-
-
-
-
Assets Held For Sale and
Discontinued Operations (net)
-
-
-
-
-
-
-
Other assets
1,451,698
1,451,698
1,451,698
-
-
-
-
Total Assets
11,406,233
11,406,233
10,915,956
478,043
-
-
12,224
Liabilities
Deposits
2,188,686
2,188,686
-
-
-
-
2,188,686
Derivative financial liabilities held
for trading
268,264
268,264
-
268,264
-
268,264
268,264
Borrowings
5,897,204
5,897,204
-
-
-
-
5,897,204
Money market borrowings
160,304
160,304
-
-
-
-
160,304
Securities issued
-
-
-
-
-
-
-
Funds
-
-
-
-
-
-
-
Miscellaneous payables
-
-
-
-
-
-
-
Other liabilities
-
-
-
-
-
-
-
Factoring payables
-
-
-
-
-
-
-
Finance lease payables
18,250
18,250
-
-
-
-
18,250
Derivative financial liabilities held
for risk management
-
-
-
-
-
-
-
Provisions
292,419
292,419
-
-
-
-
292,419
Tax Liability
174,962
174,962
-
-
-
-
174,962
Liabilities regarding assets held for
sale and discontinued operations
(net)
-
-
-
-
-
-
-
Other Liabilities
586,618
586,618
-
-
-
-
568,618
Subordinated Loans
-
-
-
-
-
-
-
Shareholders’ equity
1,819,516
1,819,516
-
-
-
-
1,819,516
Total liabilities
11,406,223
11,406,223
-
268,264
-
268,264
11,406,223
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
59
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
1. Differences and matching between the scope of accounting consolidation and legal consolidation
Prior Period
a
b
c
d
e
f
g
Carrying values in
financial statments
prepared as per TAS
Amount assessed in
accordance with TAS
under regulatory
consolidation
Carrying values of items in accordance with Turkish Accounting Standards
Credit Risk
Counterparty credit
risk
Securitizatio
n positions
Market Risk
Not subject to
capital
requirements
or subject to
deduction
from capital
Assets
Cash and Balances with the Central
Bank
1,754,609
1,754,609
1,754,609
-
-
-
-
Available-for-Sale Financial Assets
6,234
6,234
6,234
-
-
-
-
Financial assets at fair value through
profit and loss
290,526
290,526
290,526
-
-
290,526
-
Banks
125,893
125,893
125,893
-
-
-
-
Receivables from Money markets
110,041
110,041
110,041
-
-
-
-
Financial assets available for sale (net)
167,092
167,092
-
167,092
-
-
-
Loans and receivables
2,891,001
2,891,001
2,891,001
-
-
-
-
Receivables from factoring
-
-
-
-
-
-
-
Investments held to maturity (net)
-
-
-
-
-
-
-
Subsidiaries (net)
-
-
-
-
-
-
-
Associates (net)
-
-
-
-
-
-
-
Jointly controlled entities (joint
ventures) (net)
-
-
-
-
-
-
-
Finance lease receivables
-
-
-
-
-
-
-
Derivative financial liabilities held for
risk management
-
-
-
-
-
-
-
Tangible Assets (net)
50,341
50,341
50,341
-
-
-
-
Intangible Assets (net)
4,436
4,436
-
-
-
-
4,436
Real estate for investment purpose
(net)
-
-
-
-
-
-
-
Tax asset
7,656
7,656
3,589
-
-
-
4,067
Assets Held For Sale and
Discontinued Operations (net)
-
-
-
-
-
-
-
Other assets
498,524
498,524
498,524
-
-
-
-
Total Assets
5,906,353
5,906,353
5,730,758
167,092
-
290,526
8,503
Liabilities
Deposits
1,489,530
1,489,530
-
-
-
-
1,489,530
Derivative financial liabilities held for
trading
175,370
175,370
-
175,370
-
175,370
175,370
Borrowings
2,994,291
2,994,291
-
-
-
-
2,994,291
Money market borrowings
30,448
30,448
-
-
-
-
30,448
Securities issued
-
-
-
-
-
-
-
Funds
-
-
-
-
-
-
-
Miscellaneous payables
-
-
-
-
-
-
-
Other liabilities
-
-
-
-
-
-
-
Factoring payables
-
-
-
-
-
-
-
Finance lease payables
15,331
15,331
-
-
-
-
15,331
Derivative financial liabilities held for
risk management
-
-
-
-
-
-
-
Provisions
127,603
127,603
-
-
-
-
127,603
Tax Liability
25,432
25,432
-
-
-
-
25,432
Liabilities regarding assets held for
sale and discontinued operations (net)
-
-
-
-
-
-
-
Other Liabilities
61,957
61,957
-
-
-
-
61,957
Subordinated Loans
-
-
-
-
-
-
-
Shareholders’ equity
986,391
986,391
-
-
-
-
986,391
Total liabilities
5,906,353
5,906,353
-
175,370
-
175,370
5,906,353
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
60
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
b. Connections between Financial Statements and Risk Amounts (continued)
2. Main sources of differences between risk amounts and amounts in financial statements which are
evaluated in accordance with TAS
a
b
c
d
e
Current Period
Total
Credit risk
Securitization
positions
Counterparty
credit risk
Market
Risk(
*
)
1
Asset carrying value amount under scope of
TAS
11,382,721
10,915,956
-
478,043
-
2
Liabilities carrying value amount under TAS
-
-
-
-
-
3
Total net amount under regulatory
11,382,721
10,915,956
-
478,043
-
4
Off-balance Sheet Amounts
4,739,361
362,565
-
-
-
5
Differences in valuations
-
-
-
-
-
6
Differences due to different netting rules (other
than those already included in row 2)
-
-
-
-
-
7
Differences due to consideration of provisions
-
-
-
-
-
8
Differences due to prudential filters
-
-
-
45,005
1,037,638
9
Differences due to risk mitigation
-
(7,314,994)
-
-
-
10
Risk exposure
16,122,082
3,963,527
-
523,048
1,037,638
a
b
c
d
e
Prior Period
Total
Credit risk
Securitization
positions
Counterparty
credit risk
Market
Risk(
*
)
1
Asset carrying value amount under scope of
TAS
5,897,850
5,730,758
-
167,092
290,526
2
Liabilities carrying value amount under TAS
-
-
-
-
-
3
Total net amount under regulatory
5,897,850
5,730,758
-
167,092
290,526
4
Off-balance Sheet Amounts
726,307
226,829
-
-
-
5
Differences in valuations
-
-
-
-
-
6
Differences due to different netting rules (other
than those already included in row 2)
-
-
-
-
-
7
Differences due to consideration of provisions
-
-
-
-
-
8
Differences due to prudential filters
-
-
-
(29,950)
(214,736)
9
Differences due to risk mitigation
-
(2,804,047)
-
-
-
10
Risk exposure
6,624,157
3,153,540
-
137,142
75,790
(*)
According to the “Regulation on Measurement and Assessment of Capital Adequacy of Banks”, risk amounts include the financial instruments included in trading
accounts and market risk arising from the calculated capital requirement for currency risk.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
61
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
b. Connections between Financial Statements and Risk Amounts (continued)
3. Differences between risk amounts and amounts in financial statements which are evaluated in
accordance with TAS
a) Scope of accounting and legal consolidation:
There is no difference between the Bank’s accounting and legal consolidation scope.
b) Differences between the amounts in accordance with TAS and the risk amounts:
The differences between the amounts in accordance with TAS and the amounts after post-risk reduction in
the transactions subject to counterparty credit risk stem from the addition of the potential risk amounts to the
renewal costs of the derivative transactions subject to CCR and the volatility adjustments for repo / reverse
repo transactions .
The fair values of marketable securities subject to TAS are fair value of trading financial instruments. On the
other hand, the amount in the risk amount line represents the amount of the market risk based on the
calculated capital requirement for the losses that the market risk can be caused by factors such as interest rate
risk, stock price risk and currency rate risk in accordance with the “Regulation on Measurement and
Assessment of Capital Adequacy of Banks”.
c) Explanations on the systems and controls used to ensure the prudence and reliability of the Bank’s
valuation estimates in accordance with the prudent valuation principles and principles in Appendix 3
appended to the Regulation on the Measurement and Assessment of Banks’ Capital Adequa: If financial
instruments that are accounted for at fair value are traded in an active market, valuation based on market
price is made. The fair value of the market price used in valuation is confirmed periodically. Fair valuation
of financial instruments that do not have an active market is made in accordance with TFRS 9.
c) Explanations on Credit Risk
1. General Qualitative Information Related to Credit Risk
Credits Principles on risk management constitute part of the Bank’s containment risk principles:
- Risk is taken within the framework of a defined risk appetite.
- Any risks that you may receive must be approved within the risk management framework.
- The receivable must be compensated appropriately
- Risk should be monitored continuously and regularly reported.
A strong culture of risk management helps strengthen the Bank’s resistance.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
62
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
c) Explanations on Credit Risk (continued)
1. General Qualitative Information Related to Credit Risk (continued)
Credit risk arises from any counterparty, borrower or obligor (collectively named “counterparty”), every
transaction in which a contingent or probable receipt occurs. Similar to the classification of the DB Group,
the Bank recognizes three types of credit risk: counterparty risk, country risk and exchange risk. The Bank
manages its credit risk through local policies and procedures prepared in line with the Group’s policy and
rules.
Before accepting the credit risk, the basic principle of credit risk management is to examine the customers.
In accordance with the principle of “recognition of the customer”, prudent customer selection is achieved in
cooperation with the business units that see the first line of defense on behalf of the Bank.
The Bank may designate a portfolio risk appetite for specific business segments, industries, countries, certain
products, or individual counterparties to provide diversification, avoid concentration, and obtain a marketable
portfolio. When determining the risk appetite and risk limits, the Board of Directors also takes into account
the “Country and Sector Concentration Risks”.
The Risk Management Unit is independent of business units. The Bank’s credit policies are accordingly
developed and the Risk Management Department is responsible for ensuring that these policies are
maintained in accordance with the Bank’s business. The Risk Management Department is responsible for the
ongoing monitoring of credit risks, based on predetermined credit strategies. Credit strategies are coordinated
with the management staff to ensure coordinated business and risk strategies are created.
All new credit risks in the bank should be approved according to the information of those who have the
necessary credit authority according to the principle of “single debtor”. All credit risk decisions related to
the Bank are subject to the Bank’s credit authority’s approval. The bank aggregates and combines all the risk
measures of the same borrower (“one borrower principle”). At the legal personality level, the ultimate
responsibility for managing credit risk limits belongs to the Board of Directors. All current credit limits and
risks are monitored at least once every three months in a manner consistent with the Risk and Capital Report.
In the Bank, the Board of Directors may use the methods of mitigating credit risk as mentioned in section 5.
Credit risk is avoided in our strategy without any intensive concentration in our portfolio. Significant
concentration in credit risk is the risk that the Bank has entered into significant risks due to certain
counterparties with similar economic characteristics or similar activities and that these similarities between
the counterparties are not due to the contractual obligations arising from contracts of these parties in the
economic or industrial circumstances If they are likely to affect the ability to fulfil their obligations in the
same way. Concentration of credit risk may also exist at a single counterparty level.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
63
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
c) Explanations on Credit Risk (continued)
1. General Qualitative Information Related to Credit Risk (continued)
Internal Auditing “IA” provides stakeholders with independent and impartial assurance on the adequacy of
the design and effectiveness of internal control systems, as well as the effectiveness of risk management and
audit processes. ID is objective and neutral. Its function is independent of the day-to-day business of the bank,
and the ID staff is not responsible for neither the work nor the operations. The ID has the right to access all
facilities, employees, information and documentation in order to fulfil its duties. ID acts with the authority
provided by the Board of Directors and is expected to prepare and implement a dynamic and risk-based audit
from the ID. The audit result is reported to the management in the form of individual audit reports.
Internal control activities include daily activities performed by the Bank. Relevant departmants are first line
of defense which is established to check whether the rules and restrictions are followed during the execution
of the transactions, and the internal control unit is the second line of defense which is established to check
whether it is fulfilled in accordance with the rules set by the Bank. Bank’s employees must be informed about
the rules and restrictions regarding the activities and business of the internal control unit.
2. Credit quality of assets
Gross carrying value as per TAS
Allowances/amortisation
and impairments
Net values
Defaulted
Non-defaulted
Current Period
(*)
Current Period
1
Loans
-
3,915,532
706
3,914,826
2
Debt Securities
-
2,427,140
-
2,427,140
3
Off-balance sheet exposures
-
4,739,361
183
4,739,178
4
Total
-
11,082,033
889
11,081,144
Gross carrying value as per TAS
Allowances/amortisation
and impairments
Net values
Defaulted
Non-defaulted
Prior Period
(*)
Prior Period
1
Loans
-
2,891,575
574
2,891,001
2
Debt Securities
-
296,760
1,184
295,576
3
Off-balance sheet exposures
-
726,307
109
726,198
4
Total
-
3,914,642
1,867
3,912,775
(*)
Consist of expected loss.
3. Changes in nominal defaulted receivables and borrowing instruments
The Bank has no defaulted receivables.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
64
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
c) General Qualitative Information Related to Credit Risk (continued)
4. Additional information on credit quality of assets
4.1 Geographical distribution of receivables amounts
Loans
Borrowings Instruments
Off-balance sheet receivables
Provisions/
Amortisation and
impairment
Removed from
Assets
Current Period
Defaulted
Not defaulted
Defaulted
Not defaulted
Defaulted
Not defaulted
1 Defaulted Receivables
-
3,915,514
-
-
-
4,259,324
869
-
2 European Union Countries
-
1
-
-
-
336,343
13
-
3 OECD Countries
-
-
-
-
-
-
-
-
4 Off-Shore Banking Regions
-
-
-
-
-
-
-
-
5 USA, Canada
-
-
-
-
-
45,785
2
-
6 Other Countries
-
17
-
-
-
97,909
4
-
7 Total
-
3,915,532
-
-
-
4,739,361
888
-
Loans
Borrowings Instruments
Off-balance sheet receivables
Provisions/
Amortisation and
impairment
Removed from
Assets
Prior Period
Defaulted
Not defaulted
Defaulted
Not defaulted
Defaulted
Not defaulted
1 Defaulted Receivables
-
2,891,555
-
290,526
-
451,033
1,758
-
2 European Union Countries
-
15
-
-
-
141,378
109
-
3 OECD Countries
-
-
-
-
-
-
-
-
4 Off-Shore Banking Regions
-
-
-
-
-
-
-
-
5 USA, Canada
-
-
-
-
-
41,563
-
-
6 Other Countries
-
5
-
-
-
92,333
-
-
7 Total
-
2,891,575
-
290,526
-
726,307
1,867
-
4.2 Credit quality of assets - Distribution of Receivables by Sectors
Loans
Borrowings Instruments
Off-balance sheet receivables
Provisions/
Amortisation and
impairment
Removed
from Assets
Current Period
Defaulted
Non defaulted
Defaulted
Non defaulted
Defaulted
Non defaulted
Agriculture
-
196,825
-
-
-
-
-
-
Farming and Stockbreeding
-
196,825
-
-
-
-
-
-
Forestry
-
-
-
-
-
-
-
-
Fishery
-
-
-
-
-
-
-
-
Manufacturing
-
3,261,953
-
-
-
3,914,080
705
-
Mining and Quarrying
-
-
-
-
-
-
-
-
Production
-
3,261,953
-
-
-
3,914,080
705
-
Electric, Gas and Water
-
-
-
-
-
-
-
-
Construction
-
188,293
-
-
-
-
-
-
Services
-
258,539
-
-
-
825,281
183
-
Wholesale and Retail Trade
-
112,406
-
-
-
44,751
-
-
Hotel, Food and Beverage
-
-
-
-
-
-
-
-
Transportation and
Telecommunication
-
9,421
-
-
-
-
-
-
Financial Institutions
-
56,510
-
-
-
780,530
183
-
Real Estate and
Rental Services
-
2,801
-
-
-
-
-
-
Professional Services
-
-
-
-
-
-
-
-
Educational Services
-
-
-
-
-
-
-
-
Health and Social Services
-
77,401
-
-
-
-
-
-
Other
-
9,922
-
-
-
-
-
-
Total
-
3,915,532
-
-
-
4,739,361
888
-
Loans
Borrowings Instruments
Off-balance sheet receivables
Provisions/
Amortisation and
impairment
Removed
from Assets
Prior Periof
Defaulted
Non defaulted
Defaulted
Non defaulted
Defaulted
Non defaulted
Agriculture
-
221.285
-
-
-
-
-
-
Farming and Stockbreeding
-
221.285
-
-
-
-
-
-
Forestry
-
-
-
-
-
-
-
-
Fishery
-
-
-
-
-
-
-
-
Manufacturing
-
2.048.058
-
-
-
276.859
574
-
Mining and Quarrying
-
-
-
-
-
-
-
-
Production
-
2.048.058
-
-
-
276.859
574
-
Electric, Gas and Water
-
-
-
-
-
-
-
-
Construction
-
130.245
-
-
-
-
-
-
Services
-
484.336
-
290.526
-
449.448
1.293
-
Wholesale and Retail Trade
-
255.977
-
-
-
-
-
-
Hotel, Food and Beverage
-
-
-
-
-
-
-
-
Transportation and
Telecommunication
-
5.979
-
-
-
-
-
-
Financial Institutions
-
219.880
-
290.526
-
449.448
1.293
-
Real Estate and
Rental Services
-
2.500
-
-
-
-
-
-
Professional Services
-
-
-
-
-
-
-
-
Educational Services
-
-
-
-
-
-
-
-
Health and Social Services
-
-
-
-
-
-
-
-
Other
-
7.651
-
-
-
-
-
-
Total
-
2.891.575
-
290.526
-
726.307
1.867
-
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
65
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
c) General Qualitative Information Related to Credit Risk (continued)
4. Additional information on credit quality of assets (continued)
4.3 Credit Quality of Assets-Distribution according to remaining flows
Current Period
Non-
distributed
1 Month
1-3 Months
3-6 Months
6-12 Months
Over 1 Year
Total
Non-Defaulted
Receivables
3,914,080
193,280
1,301,206
1,708,535
1,142,698
395,094
8,654,893
1 Loans
-
130,126
1,143,589
1,499,119
1,142,698
-
3,915,532
2 Borrowing Instruments
-
-
-
-
-
-
-
3 Off-Balance Receivables
3,914,080
63,154
157,617
209,416
-
395,094
4,739,361
Defaulted Receivables
-
-
-
-
-
-
-
1 Loans
-
-
-
-
-
-
-
2 Borrowing Instruments
-
-
-
-
-
-
-
3 Off-Balance Receivables
-
-
-
-
-
-
-
Provisions/ Amortization
and present value
889
889
Total
3,913,191
193,280
1,301,206
1,708,535
1,142,698
395,094
8,654,004
Prior Period
Non-
distributed
1 Month
1-3 Months
3-6 Months
6-12 Months
Over 1 Year
Total
Non-Defaulted
Receivables
276,859
397,438
761,707
186,759
1,940,201
345,444
3,908,408
1 Loans
-
385,013
716,946
-
1,745,517
44,099
2,891,575
2 Borrowing Instruments
-
-
25,583
-
194,684
70,259
290,526
3 Off-Balance Receivables
276,859
12,425
19,178
186,759
-
231,086
726,307
Defaulted Receivables
-
-
-
-
-
-
-
1 Loans
-
-
-
-
-
-
-
2 Borrowing Instruments
-
-
-
-
-
-
-
3 Off-Balance Receivables
-
-
-
-
-
-
-
Provisions/ Amortization
and present value 1,867
1,867
Total
274,992
397,438
761,707
186,759
1,940,201
345,444
3,906,541
4.4 Quality of Assets - Aging analysis for overdue receivables
The Bank does not have any overdue receivables.
4.5 Quality of Assets – Provisions for Restructured Receivables
The Bank does not have any restructured receivables.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
66
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
c) General Qualitative Information Related to Credit Risk (continued)
5. Qualitative requirements to be disclosed to the public regarding credit risk mitigation techniques
In the Bank, the Board of Directors may use the following methods of mitigating credit risk,
including but not limited to:
- On-balance sheet cash settlement
- Netting and cash collateral transactions for derivative instruments
- Offsetting of collateral received / given for repo transactions
- Other appropriate collateral
- Warranty from banks and parent company warranties
The main purpose of collateralizing any loan is to mitigate the credit risk.
In case of the loan is established with a guarantee condition, it is necessary to enter the guarantees into the
banking system. Loan disbursement is the result of the systematic comparison of the collateral with the
conditions of the communiqué regarding the credit.
Collateral matching is using in the system for each loan. In addition, for each collateral, the appropriateness
of the collateral margin is also controlled.
The credit risk the bank is exposed to and the credit risk mitigation techniques used to mitigate this risk are
taken into account in the standards set out in the legislation. Credit risk mitigation is performed according to
the comprehensive financial guarantee method, where the risk mitigation effects of financial collateral are
calculated through volatility adjusted values. After applying risk mitigation techniques, standard risk weights
are applied to the unprotected portion. Cash or similar assets and borrowing instruments with a high credit
quality level are used to reduce credit risk.
6. Credit risk mitigation techniques- overview
Current Period
Exposures
unsecured of
(according to
TAS)
Exposures
secured by
collateral
Exposures
secured by
collateral,
of which
secured
amount
Exposures
secured by
financial
guarantees
financial
guarantees,
of which
secured
amount
Exposures
secured by
credit
derivatives
Exposures
secured by
credit
derivatives,
of which
secured
amount
1
Loans
3,915,532
-
-
-
-
-
-
2
Debt Instruments
2,427,140
-
-
-
-
-
-
3
Total
6,342,672
-
-
-
-
-
-
4
Of which defaulted
-
-
-
-
-
-
-
Prior Period
Exposures
unsecured of
(according to
TAS)
Exposures
secured by
collateral
Exposures
secured by
collateral,
of which
secured
amount
Exposures
secured by
financial
guarantees
financial
guarantees,
of which
secured
amount
Exposures
secured by
credit
derivatives
Exposures
secured by
credit
derivatives,
of which
secured
amount
1
Loans
2.891.575
-
-
-
-
-
-
2
Debt Instruments
296.760
-
-
-
-
-
-
3
Total
3,188,335
-
-
-
-
-
-
4
Of which defaulted
-
-
-
-
-
-
-
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
67
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
c) General Qualitative Information Related to Credit Risk (continued)
7. Qualitative disclosures on banks’ use of external credit ratings under the standardised approach for
credit risk:
The capital adequacy calculation uses the ratios given by Fitch Ratings, limited to Receivables from Central
Government or Central Banks.
8. Standardised Approach- Credit Risk Exposure and Credit Risk Mitigation Techniques
Current Period Risk Classification
On-
balance
sheet
amount
Off-balance
sheet
amount
On-balance
sheet
amount
Off-balance
sheet
amount
RWA
RWA
Density
1 Claims on sovereigns and Central Banks
2,988,705
-
2,988,705
-
81,285
2,72%
2 Claims on regional governments or local
authorities
-
-
-
-
-
-
3 Claims on administrative bodies and other
non-commercial undertakings
-
-
-
-
-
-
4 Claims on multilateral development banks
-
-
-
-
-
-
5 Claims on international organizations
-
-
-
-
-
-
6 Claims on banks and intermediary
institutions
740,776
497,451
739,683
199,348
150,802
16,06%
7 Claims on corporates
4,110,973
336,251
4,110,973
162,002
4,110,973
96,21%
8 Claims included in the regulatory retail
portfolios
-
2,441
-
1,305
1,305
100.00%
9 Claims secured by residential property
-
-
-
-
-
-
10 Claims secured by
commercial property
-
-
-
-
-
-
11 Overdue loans
-
-
-
-
-
-
12 Higher risk categories decided by the Board
-
-
-
-
-
-
13 Secured by mortgages
-
-
-
-
-
-
14 Short-term claims and short-term corporate
claims on banks and intermediary institutions
-
-
-
-
-
-
15 Undertakings for collective investments in
mutual funds
-
-
-
-
-
-
16 Other receivables
83,392
-
83,392
-
55,249
66,25%
17 Equity share investments
-
-
-
-
-
-
18 Total
7,923,846
836,143
7,922,753
362,655
4,399,614
53,10%
Prior Period Risk Classification
On-balance
sheet
amount
Off-balance
sheet
amount
On-balance
sheet
amount
Off-balance
sheet
amount
RWA
RWA
Density
1 Claims on sovereigns and Central Banks
2,511,854
-
2,472,921
-
19,862
0.80%
2 Claims on regional governments or local
authorities
-
-
-
-
-
-
3 Claims on administrative bodies and other
non-commercial undertakings
-
-
-
-
-
-
4 Claims on multilateral development banks
-
-
-
-
-
-
5 Claims on international organizations
-
-
-
-
-
-
6 Claims on banks and intermediary institutions
363,104
316,733
365,224
137,672
163,694
32.55%
7 Claims on corporates
2,996,562
269,539
2,891,659
192,718
2,979,546
96.60%
8 Claims included in the regulatory retail
portfolios
-
2,542
-
1,271
1,271
100.00%
9 Claims secured by residential property
-
-
-
-
-
-
10 Claims secured by
commercial property
-
-
-
-
-
-
11 Overdue loans
-
-
-
-
-
-
12 Higher risk categories decided by the Board
-
-
-
-
-
-
13 Secured by mortgages
-
-
-
-
-
-
14 Short-term claims and short-term corporate
claims on banks and intermediary institutions
-
-
-
-
-
-
15 Undertakings for collective investments in
mutual funds
-
-
-
-
-
-
16 Other receivables
59,698
-
59,698
-
38,743
64.90%
17 Equity share investments
-
-
-
-
-
-
18 Total
5,931,218
588,814
5,789,502
331,661
3,203,117
52,33%
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
68
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
9. Standardised Approach- Claims By Risk Classification And Risk Weights:
d. Counterparty credit risk (CCR) explanations:
1. Qualitative disclosure related to counterparty credit risk:
The Bank currently uses “Cross Guarantees in Trade Transactions”, as risk reduction techniques.
Current Period
Risk Classification/Risk weight amount
0%
10%
20%
25%
35%
50%
75%
100%
150%
250%
Other
Total risk
amount
(post-CCF
and CRM)
Claims on sovereigns and Central Banks
2,984,641
-
-
-
-
-
-
-
-
-
4,064
2,988,705
Claims on regional governments or local
authorities
-
-
-
-
-
-
-
-
-
-
-
-
Claims on administrative bodies and other
non-commercial undertakings
-
-
-
-
-
-
-
-
-
-
-
-
Claims on multilateral development banks
-
-
-
-
-
-
-
-
-
-
-
-
Claims on international organizations
-
-
-
-
-
-
-
-
-
-
-
-
Claims on banks and intermediary institutions
89,430
-
204,108
-
-
202,072
-
78
-
-
443,343
939,031
Claims on corporates
-
-
-
-
-
-
-
4,272,903
-
-
-
4,272,903
Claims included in the regulatory retail
portfolios
-
-
-
-
-
-
1,305
-
-
-
-
1,305
Claims secured by residential property
-
-
-
-
-
-
-
-
-
-
-
-
Claims secured by
commercial property
-
-
-
-
-
-
-
-
-
-
-
-
Overdue loans
-
-
-
-
-
-
-
-
-
-
-
-
Higher risk categories decided by the Board
-
-
-
-
-
-
-
-
-
-
-
-
Secured by mortgages
-
-
-
-
-
-
-
-
-
-
-
-
Short-term claims and short-term corporate
claims on banks and intermediary institutions
-
-
-
-
-
-
-
-
-
-
-
-
Undertakings for collective investments in
mutual funds
-
-
-
-
-
-
-
-
-
-
-
-
Equity share investments
-
-
-
-
-
-
-
-
-
-
-
-
Other receivables
28,104
-
-
-
-
-
-
55,247
-
-
41
83,392
Total
3,102,175
-
204,108
-
-
202,072
1,305
4,328,228
-
-
447,448
8,285,336
Prior Period
Risk Classification/Risk weight amount
0%
10%
20%
25%
35%
50%
75%
100%
150
%
250%
Other
Claims on sovereigns and Central Banks
2.472.901
-
-
-
-
-
-
-
-
-
-
Claims on regional governments or local authorities
-
-
-
-
-
-
-
-
-
-
-
Claims on administrative bodies and other non-
commercial undertakings
-
-
-
-
-
-
-
-
-
-
-
Claims on multilateral development banks
-
-
-
-
-
-
-
-
-
-
-
Claims on international organizations
-
-
-
-
-
-
-
-
-
-
-
Claims on banks and intermediary institutions
5.197
-
316.328
-
-
161.860
-
19.498
-
-
-
Claims on corporates
-
-
-
-
-
-
-
3.084.377
-
-
-
Claims included in the regulatory retail portfolios
-
-
-
-
-
-
1.271
-
-
-
-
Claims secured by residential property
-
-
-
-
-
-
-
-
-
-
-
Claims secured by
commercial property
-
-
-
-
-
-
-
-
-
-
-
Overdue loans
-
-
-
-
-
-
-
-
-
-
-
Higher risk categories decided by the Board
-
-
-
-
-
-
-
-
-
-
-
Secured by mortgages
-
-
-
-
-
-
-
-
-
-
-
Short-term claims and short-term corporate claims on
banks and intermediary institutions
-
-
-
-
-
-
-
-
-
-
-
Undertakings for collective investments in mutual
funds
-
-
-
-
-
-
-
-
-
-
-
Equity share investments
-
-
-
-
-
-
-
-
-
-
-
Other receivables
20.955
-
-
-
-
-
-
38.743
-
-
-
Total
2.499.053
-
316.328
-
-
161.860
1.271
3.142.618
-
-
-
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
69
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
d. Counterparty credit risk (CCR) explanations:
2. Analysis of counterparty credit risk exposure by approach:
Current Period
Replacement
cost
Potential
future
exposure
EEPE
(*)
Alpha used for
computing
regulatory EAD
Exposure at
Default post-
CRM
Risk
Weighted
Amount
1 Standard Approach-CCR (for derivatives)
4,147
694,430
-
-
698,577
519,006
2 Internal Model Method (for derivatives
and SFTs)
-
-
-
-
-
-
3 Simple Approach for credit risk mitigation
(for SFTs)
-
-
-
-
-
-
4 Comprehensive Approach for credit risk
mitigation (for SFTs)
-
-
-
-
-
-
5 VaR for SFTs
-
-
-
-
-
-
6 Total
4,147
694,430
-
-
698,577
519,006
Prior Period
Replacement
cost
Potential
future
exposure
EEPE
(*)
Alpha used for
computing
regulatory EAD
Exposure at
Default post-
CRM
Risk
Weighted
Amount
1 Standard Approach-CCR (for derivatives)
15,356
193,604
-
-
208,960
137,142
2 Internal Model Method (for derivatives
and SFTs)
-
-
-
-
-
-
3 Simple Approach for credit risk mitigation
(for SFTs)
-
-
-
-
-
-
4 Comprehensive Approach for credit risk
mitigation (for SFTs)
-
-
-
-
-
-
5 VaR for SFTs
-
50,020
-
-
50,020
-
6 Total
15,356
243,624
-
-
258,980
137,142
(*)
Effective expected positive exposure.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
70
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
d. Counterparty credit risk (CCR) explanations (continued)
3. Credit valuation adjustment (CVA) capital charge:
Current Period
Exposure at default post-CRM
Risk Weighted Amount
Total portfolios subject to the Advanced CVA capital
charge
-
-
1
(i) VaR component (including the 3
*
multiplier)
-
-
2
(ii) Stressed VaR component (including the 3
*
multiplier)
-
-
3
All portfolios subject to the Standardised CVA capital
charge
698,577
519,006
4
Total subject to the CVA capital charge
698,577
519,006
Prior Period
Exposure at default post-CRM
Risk Weighted Amount
Total portfolios subject to the Advanced CVA capital
charge
-
-
1
(i) VaR component (including the 3
*
multiplier)
-
-
2
(ii) Stressed VaR component (including the 3
*
multiplier)
-
-
3
All portfolios subject to the Standardised CVA capital
charge
540,699
282,534
4
Total subject to the CVA capital charge
540,699
282,534
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
71
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
d. Counterparty credit risk (CCR) explanations:
4. Standardised approach – Credit Counterparty Risk Exposures by regulatory portfolio and risk
weights:
Risk Portfolio (Current Period)
0%
10%
20%
50%
75%
100%
150%
Other
Total Credit
Risk
(*)
Receivables from central governments and central
banks
58,544
-
-
-
-
-
-
-
58,544
Receivables from regional or local governments
-
-
-
-
-
-
-
-
-
Receivables from administrative units and non-
commercial enterprises
-
-
-
-
-
-
-
-
-
Receivables from multilateral development banks
-
-
-
-
-
-
-
-
-
Receivables from international organizations
-
-
-
-
-
-
-
-
-
Receivables from banks and intermediary institutions
-
-
136,730
-
-
-
-
-
136,730
Corporate receivables
-
-
-
-
-
503,204
-
-
503,204
Receivables from the retail
-
-
-
-
99
-
-
-
99
Other Assets
(**)
-
-
-
-
-
-
-
-
-
Total
58,544
-
136,730
-
99
503,204
-
-
698,577
Risk Portfolio (Prior Period)
0%
10%
20%
50%
75%
100%
150%
Other
Total Credit
Risk
(*)
Receivables from central governments and central
banks
53,052
-
-
-
-
-
-
-
53,052
Receivables from regional or local governments
-
-
-
-
-
-
-
-
-
Receivables from administrative units and non-
commercial enterprises
-
-
-
-
-
-
-
-
-
Receivables from multilateral development banks
-
-
-
-
-
-
-
-
-
Receivables from international organizations
-
-
-
-
-
-
-
-
-
Receivables from banks and intermediary institutions
-
-
51,077
-
-
-
-
-
51,077
Corporate receivables
-
-
-
-
-
104,831
-
-
104,831
Receivables from the retail
-
-
-
-
-
-
-
-
-
Other Assets
(**)
-
-
-
-
-
-
-
-
-
Total
53,052
-
51,077
-
-
104,831
-
-
208,960
(*)
Total credit risk amount related to the capital adequency calculation after the counterparty credit risk measurement tecniques are applied.
(**)
Other assets includes amounts that not included in the counterparty credit risk reported in the table “Cenral counterparty risks.”
5. Composition of collateral for CCR exposure:
Colleteral for derivative transactions
Colleteral for other transactions
Fair value of collateral received
Fair value of collateral given
Fair value of colleteral
received
Fair value of colleteral
given
Current Period
Segregated
Unsegregated
Segregated
Unsegregated
Cash-local currency
-
-
-
-
-
-
Cash-foreign currency
43,738
-
1,474,122
-
-
-
Domestic sovereign debts
-
-
-
-
-
-
Other sovereign debts
-
-
-
-
-
-
Government agency debts
-
-
-
-
-
-
Corporate debts
-
-
-
-
-
-
Equity securities
-
-
-
-
-
-
Other colleteral
-
-
-
-
-
-
Total
43,738
1,474,122
Colleteral for derivative transactions
Colleteral for other transactions
Fair value of collateral received
Fair value of collateral given
Fair value of colleteral
received
Fair value of colleteral
given
Prior Period
Segregated
Unsegregated
Segregated
Unsegregated
Cash-local currency
-
-
-
-
-
-
Cash-foreign currency
31,638
-
400,486
-
-
-
Domestic sovereign debts
-
-
-
-
-
-
Other sovereign debts
-
-
-
-
-
-
Government agency debts
-
-
-
-
-
-
Corporate debts
-
-
-
-
-
-
Equity securities
-
-
-
-
-
-
Other colleteral
-
-
-
-
-
-
Total
31,638
400,486
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
72
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
d. Counterparty credit risk (CCR) explanations:
6. Credit Derivative Exposures:
None.
7. Exposures to central counterparties (CCP):
Counterparties consist of central counterparties, banks corporate and business firms. Central counterparty risks
consist of guaranties given and the amount of guarantee fund paid.
e. Securitization Explanations
The bank has no securitization transaction
f. Market risk disclosures
1. Qualitative requirements for public disclosure on Market risk:
Market risk is the risk that a Bank’s positions will experience a possible loss of value due to market
fluctuations. Market risk is due to uncertainties arising from changes in market prices and ratios, correlations
between them and volatility levels. In accordance with the Regulation on Measurement and Assessment of
Capital Adequacy of Banks, market risks can be classified as follows:
-General market risk: The probability that the Bank will be exposed to interest rate risk and exposure to
market risk due to the position of the position of the financial instruments in the trading accounts
-Specific risk: The probability of loss that may arise due to the problems that may arise from the management
and financial structures of the institutions that issue or guarantee the financial instruments constituting these
positions, except for extraordinary market movements, in the positions regarding the financial instruments
included in the bank’s trading accounts,
-Exchange risk: The probability of loss that the Bank may incur as a result of changes that may occur in
exchange rates due to all foreign currency assets and liabilities,
-Commodity risk: The probability of the loss that the Bank may incur due to positional conditions related to
derivative and derivative financial instruments due to movements in commodity prices,
-Compensation risk: Exposure to the bank due to changes in the price of securities, foreign exchange or
commodities subject to the processing of a securities, foreign exchange or commodity for the delivery of a
certain price at the agreed price and foreseeing that both parties fulfil their obligations at the time of maturity
probability of damage.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
73
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
f. Market risk disclosures
1. Qualitative requirements for public disclosure on Market risk:
All market risks are monitored according to certain limits set by the Board of Directors. The above types of
market risk are monitored by the Risk Management Unit. Types of risks undertaken by the Bank may include
one or more of these types of market risk; Risk assessments are determined during the new product acceptance
(LOI) process and at the time of application to purchase authorization certificates.
DB A.Ş. The Market Risks Management process outlines the following transactions:
-Identification of the market risk,
-Limit structure definition,
-The development and implementation of the policies of market risk and the principles of implementation,
-Analysis and monitoring of market risk,
-Control and reporting of market risk.
Market Risk Limits of DB A.Ş. are defined in “Market Risk Policy of DB A.Ş.”. Market risk limits, as a result
of agreement reached with related parties, DB A.Ş. Presented to the Board of Directors for review by the Risk
Management Unit. The Board of Directors reviews and approves market risk limits at least once a year.
Finance and Operations units are responsible for daily monitoring and reporting of defined limits. Limit
overruns are monitored daily by the Risk Management Unit through limit overrun reports.
2. Standardised approach:
Current period
Prior period
Risk Weighted
Amount
Risk Weighted Amount
Outright products
(*)
83,011
6,063
1
Interest rate risk (general and specific)
71,964
2,121
2
Equity risk (general and specific)
-
-
3
Foreign exchange risk
11,047
3,942
4
Commodity risk
-
-
Options
-
-
5
Simplified approach
-
-
6
Delta-plus method
-
-
7
Scenario approach
-
-
8
Securitisation
-
-
9
Total
83,011
6,063
(*)
Outright products refer to positions in products that are not optional.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
74
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
g. Operational Risk
In the calculation of the Bank’s operational risk, the “Basic Indicator Method” is used. The amount subject to
operational risk is calculated once a year in accordance with the Regulation on “Measurement and Assessment
of the Capital Adequacy of Banks” published in the Official Gazette numbered 25911 on 23 October 2015. In
the basic indicator method, the operational risk base amount is calculated by multiplying the last three years
by the average of fifteen percent of the year-end gross income amount realized by the last three years. The
amount subject to operational risk is TL 665,869 for the current period (31 December 2021: TL 543,138).
31.12.2019
31.12.2020
31.12.2021
Total / Number
of years for
which gross
income is positive
Rate (%)
Total
Gross Income
320,162
263,077
482,152
355,130
15
53,270
Amount subject to operational
risk (Total
*
12,5)
665,869
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
75
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
X. Explanations on risk management (continued)
h. Interest rate risk on banking books
The interest rate risk of the banking books is measured and monitored within the scope of the Regulation about
Measurement and Assessment of Interest Rate Risk in the Banking Accounts by Standard Shock Method.
Current Period
Shock Applied
(+/- x basis point)
Gains/ (Losses)
Gains/Equity-
(Losses)/Equity
Type of Currency
TL
(+) 500bp
(3,270)
(0,18%)
TL
(-) 400bp
2,733
0,15%
EUR
(+) 200bp
47,505
2,64%
EUR
(-) 200bp
(48,970)
(2,72%)
USD
(+) 200bp
(410)
(0,02%)
USD
(-) 200bp
419
0,02%
Total (of positive shocks)
43,825
2,43%
Total (of negative shocks)
(45,818)
2,53%
Prior Period
Shock Applied
(+/- x basis point)
Gains/ (Losses)
Gains/Equity-
(Losses)/Equity
Type of Currency
TL
(+) 500bp
(16,737)
(2.05%)
TL
(-) 400bp
14,127
1.73%
EUR
(+) 200bp
1,143
0.14%
EUR
(-) 200bp
(1,144)
(0.14%)
USD
(+) 200bp
(93)
(0.01%)
USD
(-) 200bp
95
0.01%
Total (of positive shocks)
(15,687)
(1.91%)
Total (of negative shocks)
13,078
1.60%
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
76
INFORMATION RELATED TO FINANCIAL POSITION OF THE BANK (continued)
XI. Explanations on operating segments
Information of operating segments for the years ended 31 December 2022 and 31 December 2021 is presented
in the following table:
Current period
Global Transaction
Banking
Markets
Other
(*)
Unallocated
Bank’s Total
Operating
31 December 2022
Operating Profit
392,231
861,682
324,318
-
1,578,231
Net Operating Profit / (Loss)
192,728
715,935
222,377
-
1,131,040
Profit /(Loss) Before Tax
192,728
715,935
222,377
-
1,131,040
Tax Provision (-)
-
-
-
(282,923)
(282,923)
Net Period Profit /(Loss)
192,728
715,935
222,377
(282,923)
848,117
31 December 2022
Segment Assets
4,005,840
3,924,542
3,475,841
-
11,406,223
Segment Liabilities
1,910,630
1,072,901
6,603,176
-
9,586,707
Equity
-
-
-
1,819,516
1,819,516
Prior period
Global Transaction
Banking
Markets
Other
(*)
Unallocated
Bank’s Total
Operating
31 December 2021
Operating Profit
179,754
138,635
163,763
-
482,152
Net Operating Profit / (Loss)
32,385
45,760
163,132
-
241,277
Profit /(Loss) Before Tax
32,385
45,760
163,132
-
241,277
Tax Provision (-)
-
-
-
(60,328)
(60,328)
Net Period Profit /(Loss)
32,385
45,760
163,132
(60,328)
180,949
31 December 2021
Segment Assets
2,963,282
671,385
2,271,686
-
5,906,353
Segment Liabilities
1,445,308
263,470
3,211,184
-
4,919,962
Equity
-
-
-
986,391
986,391
(*)
Consists of equity and treasury.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
77
SECTION FIVE
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS
I. Explanations and notes related to assets
1. Information related to cash and balances with the Central Bank of the Republic of Turkey
1.a Information on cash and balances with the Central Bank of the Republic of Turkey
Current Period
Prior Period
TL
FC
TL
FC
Cash / Effective
-
-
-
-
Central Bank of Turkey
382,013
2,669,826
210,866
1,543,743
Other
-
-
-
-
Total
382,013
2,669,826
210,866
1,543,743
1.b Information on balances with the Central Bank of the Republic of Turkey
Current Period
Prior Period
TL
FC
TL
FC
Unrestricted Demand Deposits
382,013
1,193,770
207,784
807,527
Unrestricted Time Deposits
-
-
-
-
Restricted Time Deposits
-
1,476,056
3,082
736,216
Total
382,013
2,669,826
210,866
1,543,743
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
78
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
1.c Information on reserve deposits
The bank establishes mandatory reserves with the CBRT (Central Bank of the Republic of Turkey) for its
Turkish currency assets and liabilities, as well as foreign currency liabilities, in accordance with the CBRT's
"Regulation on Mandatory Reserves No. 2013/15". According to the "Regulation on Mandatory Reserves",
mandatory reserves can be held in Turkish Lira, USD, EUR, and standard gold at the CBRT..
As of December 17th, 2021, an interest rate of 8.5% is applied to mandatory reserves established in Turkish
Lira, and this has been terminated as of April 15th, 2022.
As of December 31st, 2022, mandatory reserve ratios for Turkish currency liabilities range from 3% to 8%
depending on the maturity structure (compared to 3% to 8% as of December 31st, 2021); mandatory reserve
ratios for foreign currency liabilities range from 5% to 26% depending on the maturity structure (compared to
5% to 25% as of December 31st, 2021).
2. Information on financial assets at fair value through profit or loss
2.a Financial assets at fair value through profit or loss
As of 31 December 2022, the amount of financial assets at fair value through profit or loss is TL 2,427,140.
(31 December 2021: 6,234 TL)
2.a.1 Financial assets at fair value through profit/loss provided as collateral/blocked
2.a.2 Financial assets at fair value through profit/loss subject to repurchase agreements
2.b Positive differences on derivative financial assets held for trading
Current Period
Prior Period
TL
FC
TL
FC
Bond, Conversion and Securities
109,533
-
-
-
Stocks
-
-
-
-
Other
-
-
-
-
Total
109,533
-
-
-
Current Period
Prior Period
TL
FC
TL
FC
Government Conversion
132,515
-
-
-
Treasury Conversion
-
-
-
-
Other Debt Securities
-
-
-
-
Bank Bonds and Bank Guarantee Bonds
-
-
-
-
Asset Backed Securities
-
-
-
-
Other
-
-
-
-
Total
132,515
-
-
-
Current Period
Prior Period
TL
FC
TL
FC
Forward Transactions
-
403,600
-
88,657
Swap Transactions
-
74,443
-
78,435
Futures
-
-
-
-
Options
-
-
-
-
Other
-
-
-
-
Total
-
478,043
-
167,092
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
79
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
3. Information on banks
3.a. Information on banks
Current Period
Prior Period
TL
FC
TL
FC
Banks
Domestic
901
102
80,224
632
Foreign
18
7,812
5
46,088
Foreign head offices and branches
-
-
-
-
Total
919
7,914
80,229
46,720
3.b Information on foreign banks account
Unrestricted
amount
Restricted
amount
Unrestricted
amount
Restricted
amount
Current
Period
Current
Period
Prior
Period
Prior
Period
EU Countries
3,531
-
42.854
-
USA, Canada
1,411
-
2.690
-
OECD Countries
(*)
2,888
-
549
-
Off-shore Banking Regions
-
-
-
-
Other
-
-
-
-
Total
7,830
-
46.093
-
(*)
OECD countiries other than EU countries,USA and Canada
4. Information on financial assets at fair value through other comprehensive income
Current Period
Prior Period
TL
FC
TL
FC
Debt Securitiess
-
-
298,322
-
Listed
-
-
298,322
-
Unlisted
-
-
-
-
Stocks
-
-
-
-
Listed
-
-
-
-
Unlisted
-
-
-
-
Impairment Provision
-
-
7,796
-
Total
-
-
290,526
-
4.a.1 Information financial assets at fair value through other comprehensive income given as
collateral/blocked
As of 31 December 2022, there is no amount of financial assets given as collateral/blocked at fair value through
other comprehensive income. (31 December 2021: 290,526 TL).
4.a.2 Information financial assets at fair value through other comprehensive income subject to repurchase
agreements
None (31 December 2021: None).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
80
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
5. Explanations on loans
5.a Information on all types of loan or advance balances given to shareholders and employees of the Bank
Current Period
Prior Period
Cash
Non-cash
Cash
Non-cash
Direct Lending to Shareholders
-
437,120
-
193,552
Corporate Shareholders
-
437,120
-
193,552
Individual Shareholders
-
-
-
-
Indirect Lending to Shareholders
183,886
-
134,769
-
Loans to Employees
-
-
-
-
Total
183,886
437,120
134,769
193,552
5.b Information on the first and second group loans and receivables including loans that have been
restructured or rescheduled and other receivables
Current Period
Standart
loans
Loans under close monitoring
Cash loans
Not under the scope of
restructuring
Loans under restructuring
Modifications on
agreement conditions
Refinancing
Non-Specialized Loans
3,915,532
-
-
-
Commercial loans
1,616,117
-
-
-
Export Loans
1,936,592
-
-
-
Import Loans
-
-
-
-
Loans Given to Financial Sector
362,818
-
-
-
Consumer Loans
-
-
-
-
Credit Cards
-
-
-
-
Other
5
-
-
-
Specialized Lending
-
-
-
-
Other Receivables
-
-
-
-
Total
3,915,532
-
-
-
Prior Period
Standart
loans
Loans under close monitoring
Cash loans
Not under the scope of
restructuring
Loans under restructuring
Modifications on
agreement conditions
Refinancing
Non-Specialized Loans
2,891,575
-
-
-
Commercial loans
1,631,486
-
-
-
Export Loans
943,585
-
-
-
Import Loans
-
-
-
-
Loans Given to Financial Sector
213,958
-
-
-
Consumer Loans
-
-
-
-
Credit Cards
-
-
-
-
Other
102,546
-
-
-
Specialized Lending
-
-
-
-
Other Receivables
-
-
-
-
Total
2,891,575
-
-
-
Current Period Prior Period
Standard loans Loans under close
monitoring
Standard loans Loans under close
monitoring
12 month provisions for possible losses
706 -
574 -
Significant increase in credit risk
- -
- -
Total
706 -
574 -
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
81
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
I. Explanations and notes related to assets (continued)
5. Explanations on loans (continued)
5.c Loans according to their maturity structure
Current Period Prior Period
Standard loans Loans under close
monitoring
Standard loans Loans under close
monitoring
Short Term Loans
3,854,381 -
2,847,476 -
Medium And Long Term Loans
61,151 -
44,099 -
Total
3,915,532 -
2,891,575 -
5.d Information on consumer loans, individual credit cards, personnel loans and personnel credit cards
The Bank has no consumer loans, consumer credit cards, personnel credit cards, short term personnel loans
as of 31 December 2022 (31 December 2021: None).
5.e Information on instalment based commercial loans and corporate credit cards
The Bank’s overdraft account amount is TL 79,834 as of 31 December 2022 (31 December 2021: TL 29,859
TL).
5.f Distribution of credits by users
Current Period
Prior Period
Public Sector
-
-
Private Sector
3,915,532
2,891,575
Total
3,915,532
2,891,575
5.g Distribution of domestic and foreign loans
Current Period
Prior Period
Domestic Loans
3,915,528
2,891,560
Foreign Loans
4
15
Total
3,915,532
2,891,575
5.h Loans to associates and subsidiaries
None (31 December 2021: None).
5.i Specific provisions or allowance for expected credit losses (III. Stage) for loans
None (31 December 2021: None).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
82
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
I. Explanations and notes related to assets (continued)
5.j Information on non-performing loans (Net)
5.j.1 Information on non-performing loans and receivables restructured or rescheduled
None (31 December 2021: None).
5.j.2 Information on the movement of total non-performing loans
None (31 December 2021: None).
5.j.3 Information on foreign currency non-performing loans and receivables
None (31 December 2021: None).
6. Financial assets measured at amortised cost
None (31 December 2021: None).
7. Information on investments in associates
None (31 December 2021: None).
8. Information on investments in subsidiaries
None (31 December 2021: None).
9. Information on investments in joint ventures
None (31 December 2021: None).
10. Information on lease receivables
None (31 December 2021: None).
11. Information on derivative financial assets held for risk management
None (31 December 2021: None).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
83
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
I. Explanations and notes related to assets (continued)
12. Information on property and equipment
Current Period
Right of use Assets
Other Tangible Assets
Total
1 January 2022
Cost
42,331
65,454
107,785
Accumulated Depreciation (-)
(25,643)
(31,801)
(57,444)
Net Carrying Value
16,688
33,653
50,341
31 December 2022
Net Carrying Value at the Beginning of the Period
16,688
33,653
50,341
Additions
12,781
23,476
36,257
Disposals (-) (net)
(1,755)
-
(1,755)
Depreciation (-)
(6,549)
(10,807)
(17,356)
Cost at the End of the Period
53,357
88,930
142,287
Accumulated Depreciation at the End of the Period (-)
(32,192)
(42,608)
(74,800)
Net Carrying Value
21,165
46,322
67,487
Prior Period
Right of use Assets
Other Tangible Assets
Total
1 January 2021
Cost
40,918
37,087
78,005
Accumulated Depreciation (-)
(18,225)
(25,871)
(44,096)
Net Carrying Value
22,693
11,216
33,909
31 December 2021
Net Carrying Value at the Beginning of the Period
22,693
11,216
33,909
Additions
1,413
28,382
29,795
Disposals (-) (net)
-
(15)
(15)
Depreciation (-)
(7,418)
(5,930)
(13,348)
Cost at the End of the Period
42,331
65,454
107,785
Accumulated Depreciation at the End of the Period (-)
(25,643)
(31,801)
(57,444)
Net Carrying Value
16,688
33,653
50,341
As of 31 December 2022 and 31 December 2021, there is not impairment losses or reversal of impairment losses on tangible
assets.
As of 31 December 2022 and 31 December 2021, there is no pledge on tangible assets.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
84
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
I. Information on property and equipment (continued)
13. Additionally necessary information on each intangible asset type:
The Bank has intangible assets amounting to TL 12,224 as of 31 December 2022 (31 December 2021: TL
4,436).
13.a Carrying value and accumulated amortization balances at current and prior period
Current Period
Carrying Value
Impairment
Accumulated Amortisation
Intangible Assets
193,586
60,750
120,612
Prior Period
Carrying Value
Impairment
Accumulated Amortisation
Intangible Assets
182,143
60,750
116,957
13.b Movement table containing the following information between the beginning and end of the period
Current Period
Prior Period
Beginning of the Period
4,436
4,178
Additions due to Mergers, Transfers and Acquisitions
11,443
3,293
Amortization (-)
(3,655)
(3,035)
End of the Period
12,224
4,436
14. Information on investment property
None (31 December 2021: None).
15. Information on tax assets
As of 31 December 2022, the Bank has no current tax assets (31 December 2021: None).
Detailed information on the net deferred tax asset/liability is given in the explanations and footnotes related
to the liabilities numbered 8.b in Section Five.
16. Information on assets held for sale and discontinued operations
None (31 December 2021: None).
17. Information on other assets
17.a Information on prepaid expenses, tax and similar transactions
Current Period
Prior Period
Guarantees Given
(**)
1,266,525
400,512
Income accruals
(*)
143,259
93,259
Prepaid Expenses
1,097
1,079
Other
40,817
3,674
Total
1,451,698
498,524
(*)
TL 138,174 of income accruals comprise service income accruals (31 December 2021: TL 89,700) and TL 5,085
of income accruals comprise other accruals (31 December 2021: TL 3,559).
(**)
Includes collaterals given for derivative and futures option market transactions.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
85
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
II. Explanations and Notes Related to Liabilities
II. Explanations and Notes Related to Liabilities (continued)
1. Information on maturity structure of deposits
Current Period
Demand
With 7 days
notifications
Up to 1
month
1-3
months
3-6
months
6 months-
1 year
1 year
and over
Total
Saving Deposits
-
-
-
-
-
-
-
-
Foreign Currency Deposits
724,387
-
-
-
-
-
-
724,387
Residents in Turkey
700,252
-
-
-
-
-
-
700,252
Residents Abroad
24,135
-
-
-
-
-
-
24,135
Public Sector Deposits
-
-
-
-
-
-
-
-
Commercial Deposits
528,381
-
485,453
-
-
-
-
1,013,834
Other Institutions Deposits
3,048
-
7,300
-
-
-
-
10,348
Precious Metal Deposits
-
-
-
-
-
-
-
-
Bank Deposits
120,059
-
320,058
-
-
-
-
440,117
The Central Bank of Turkey
-
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
-
Foreign Banks
120,059
-
320,058
-
-
-
-
440,117
Special Financial Institutions
-
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
Total
1,375,875
-
812,811
-
-
-
-
2,188,686
Prior Period
Demand
With 7 days
notifications
Up to 1
month
1-3
months
3-6
months
6 months-
1 year
1 year
and over
Total
Saving Deposits
-
-
-
-
-
-
-
-
Foreign Currency Deposits
677,228
-
-
4,672
-
-
-
681,900
Residents in Turkey
665,010
-
-
4,672
-
-
-
669,682
Residents Abroad
12,218
-
-
-
-
-
-
12,218
Public Sector Deposits
-
-
-
-
-
-
-
-
Commercial Deposits
352,799
-
158,097
-
-
-
-
510,896
Other Institutions Deposits
157
-
6,002
-
-
-
-
6,159
Precious Metal Deposits
-
-
-
-
-
-
-
-
Bank Deposits
215,561
-
75,014
-
-
-
-
290,575
The Central Bank of Turkey
-
-
-
-
-
-
-
-
Domestic Banks
-
-
-
-
-
-
-
-
Foreign Banks
215,561
-
75,014
-
-
-
-
290,575
Special Financial Institutions
-
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
Total
1,245,745
-
239,113
4,672
-
-
-
1,489,530
1.a Saving deposits covered by deposit insurance and total amount of deposits exceeding insurance
coverage limit
None (31 December 2021: None).
1.b Saving deposits at domestic branches of foreign banks in Turkey under the coverage of foreign
insurance
None (31 December 2021: None).
1.c Saving deposits out of the insurance coverage limits of Saving Deposit Insurance Fund
None (31 December 2021: None).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
86
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
II. Explanations and Notes Related to Liabilities (continued)
2. Information on derivative financial liabilities at fair value through profit or loss
Current Period
Prior Period
TL
FC
TL
FC
Forward Transactions
-
95,833
-
72,924
Swap Transactions
-
172,431
-
102,446
Futures Transactions
-
-
-
-
Options
-
-
-
-
Other
-
-
-
-
Total
-
268,264
-
175,370
3. Information on funds borrowed
3.a Information on banks and other financial institutions
Current Period
Prior Period
TL
FC
TL
FC
Central Bank of Turkey
-
-
-
-
Domestic Banks and Institutions
-
-
-
-
Foreign Banks, Institutions and Funds
282,124
5,615,080
140,050
2,854,241
Total
282,124
5,615,080
140,050
2,854,241
3.b Information on maturity structure of funds borrowed
Current Period
Prior Period
TL
FC
TL
FC
Short-Term
282,124
5,555,378
140,050
2,810,194
Medium and Long-Term
-
59,702
-
44,047
Total
282,124
5,615,080
140,050
2,854,241
3.c Additional information on the major concentration of the Bank’s liabilities
The Bank funds its assets within the normal course of its banking business with bank deposits, funds
borrowed and interbank money markets
4. At least 20% of account of other liabilities on the balance sheet, exceeding 10% of the total liabilities
excluding the off balance sheet items
Account of other liabilities on the balance sheet does not exceed 10% of total liabilities excluding the off-
balance sheet items.
5. Information on financial lease payables (Net)
31 December 2022
31 December 2021
TP
YP
TP
YP
Less than 1 year
9,273
-
5,922
-
Between 1-4 years
8,977
-
9,298
-
More than 4 years
-
-
111
-
Total
18,250
-
15,331
-
6. Information on derivative financial liabilities held for risk management
None (31 December 2021: None).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
87
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
II. Explanations and Notes Related to Liabilities (continued)
7. Information on provisions and subordinated loans
7.a Information on provisions on unindemnified non cash loans
As of 31 December 2022, provisions on unindemnified non cash loans amounting to TL 183 (31 December
2021: TL 109).
7.b Reserve for employment benefits
Information on reserve for employment termination benefits
Current Period
Prior Period
Personnel Bonus Provision
56,210
33,179
Provision for Employee Severance Indemnities
6,178
4,950
Vacation Pay Liability
5,492
2,407
Total
67,880
40,536
In accordance with the existing Turkish Labour Law, the Bank is required to make lump-sum termination
indemnities to each employee who has completed one year of service with the Bank and whose employment
is terminated due to retirement or for reasons other than resignation or misconduct and this amount is limited
by the termination indemnity upper limit.
Employee severance indemnities are not subject to legal funding requirements.
The provision has been calculated by estimating the present value of the future probable obligation of the
Bank arising from the retirement of employees. TAS 19 requires actuarial valuation methods to be developed
to estimate the enterprise’s obligation under defined benefit plans. Accordingly, assumptions on discount
rate, expected rate of salary increase and employee turnover rate is used in the calculation of the total liability.
Each assumption is reviewed on an annual basis. The major actuarial assumptions used in the calculation of
the total liability are as follows:
Current Period
Prior Period
Net discount rate
2.94%
3.87%
Rate of expected inflation increase
19.00%
15.00%
Turnover rate to estimate the probability of retiremet
92.40%
92.40%
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
88
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
II. Explanations and Notes Related to Liabilities (continued)
7.b Reserve for employment benefits (continued)
Movement of provision for severance indemnities during the year is presented below:
Current Period
Prior Period
Balance at the beginning of the period
2,407
1,969
The provision of the current year
250
197
Interest Cost
468
268
The provision is paid during the period (-)
(341)
(411)
Actuarial gains/(losses)
(1)
2,708
384
Total
5,492
2,407
(1)
Actuarial losses and gains are classified under equity or other comprehensive income (loss) that will not be
reclassified in profit or loss.
7.c Information on other provisions
7.c.1 General reserve for possible losses
None (31 December 2021: None).
7.c.2 Information on other provisions exceeding 10% of total provisions
As of 31 Decemler 2022, other provisions amounting to TL 224,539 (31 December 2021: TL 87,067)
includes provisions amounting to TL 193,479 (31 December 2021: TL 80,312) that will be paid in
accordance with the service agreement signed with Deutsche Bank Group.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
89
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
II. Explanations and Notes Related to Liabilities (continued)
8. Information on tax liability
8.a.1 Information on tax liability
As of 31 December 2022, the Bank’s corporate tax payable is amounting to TL 137,243 (31 December
2021: TL 25,432).
8.a.2 Information on taxes payable
Current period
Prior period
Corporate Taxes Payable
105,413
10,211
Banking Insurance Transaction tax (BITT)
9,892
5,793
Value Added Tax Payable
15,207
6,199
Taxation on Securities Income
636
372
Foreign Exchange transaction tax
186
107
Other
(*)
4,386
1,893
Total
135,720
24,585
(1)
Includes withholding income taxes amounting to TL 4,114 (31 December 2021: TL 1,834).
8.a.3 Information on premium payables
Current Period
Prior Period
Social Security Premiums-Employee
729
362
Social Security Premiums-Employer
819
408
Bank Pension Fund Premium-Employees
-
-
Bank Pension Fund Premium-Employer
-
-
Pension Fund Membership Fee and Provisions-Employee
-
-
Pension Fund Membership Fee and Provisions-Employer
-
-
Unemployment Insurance-Employee
52
26
Unemployment Insurance-Employer
103
51
Others
-
-
Total
1,703
847
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
90
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
II. Explanations and Notes Related to Liabilities (continued)
8.b Information on deferred tax liability
The Bank's net deferred tax liability calculated over the timing differences between the accounting policies
and valuation principles applied and the tax legislation in the current period has been accounted for as TL
37.539-(31-December-2021:TL-7.656-deferred-tax-asset).
As of 31 December 2022, current tax liability has been accounted for as TL 137.423 (December 31, 2021:
TL-25.432).
There are no deductible temporary differences over which deferred tax assets have not been calculated and
reflected-in-the-balance-sheet-in-previous-periods.
Detailed-information-on-net-deferred-tax-asset/liability-is-as-follows:
Current Period
Prior Period
Accumulated
Temporary
Differences
Deferred
Tax
Asset/Debt
Accumulated
Temporary
Differences
Deferred
Tax
Asset/Debt
Employee Benefits Provision
33,393
8,348
23,663
5,143
Derivative Financial Assets Net Expense Rediscount
-
-
8,973
2,064
Provisions
9,467
2,594
3,308
793
Differences Between Carrying Value and Tax Value of
Lease Transactions
5,627
1,407
4,462
908
Other
1,262
316
662
152
Deferred Tax Asset
49,749
12,665
41,068
9,060
Registration of Tangible and Intangible Assets
(10,687)
(2,672)
(6,881)
(1,404)
Derivative Financial Assets Net Income Rediscount
(190,127)
(47,532)
-
-
Deferred Tax Liabilities
(200,814)
(50,204)
(6,881)
(1,404)
Deferred tax asset/(liability), net
(151,065)
(37,539)
34,187
7,656
9. Information on liabilities related to assets held for sale and discontinued operations
None (31 December 2021: None).
10. Explanations on the number of subordinated loans the group used, maturity, interest rate,
institution that the loan was borrowed from, and conversion option, if any
None (31 December 2021: None).
11. Information of paid-in capital
11.1 Presentation of paid-in capital
Current Period
Prior Period
Common Stock
135,000
135,000
Preferred Stock
-
-
Total
135,000
135,000
11.2 Paid-in capital amount, explanation as to whether the registered share capital system ceiling is
applicable at bank, if so amount of registered share capital
The Bank is not subject to registered share capital system.
11.3 Information on the share capital increases during the period and their sources
None (31 December 2021: None).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
91
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
II. Explanations and Notes Related to Liabilities (continued)
11.4 Information on share capital increases from revaluation funds
None (31 December 2021: None).
11.5 Capital commitments in the last fiscal year and at the end of the following interim period, the general
purpose of these commitments and estimated resources required to meet these commitments
None (31 December 2021: None).
11.6 Information on privileges given to shares representing the capital
None (31 December 2021: None).
11.7 Information on securities value increase fund
Current Period
Prior Period
TL
FC
TL
FC
From associates, subsidiaries, and joint ventures
Valuation differences
-
-
-
-
Foreign exchange difference
-
-
-
-
Financial assets at fair value through other comprehensive income loans
-
-
(7,796)
-
Valuation differences
-
-
(7,796)
-
Foreign exchange difference
-
-
-
-
Total
-
-
(7,796)
-
11.8 Information on profit sharing bonds
Explanations are presented at Section 5 Note V.4.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
92
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
III. Explanations and Notes Related to Off-Balance Sheet Items
1. Information on off balance sheet liabilities
1.a The amount and type of irrevocable commitments
Type of irrevocable commitments
Current Period
Prior Period
Forward asset purchase commitments
3,869,788
180,672
Loan Granting Commitments
28,307
94,976
Tax and Fund Liabilities from Export Commitments
15,985
1,211
Total
3,914,080
276,859
1.b Possible losses and commitments resulted from off-balance sheet items including the following
1.b.1 Non-cash loans including guarantees, bank acceptances, letters of guarantee substitute for
financial guarantees and other letters of credit
As of 31 December 2022, the letter of guarantee given is TL 823,748 (31 December 2021: TL 447,659).
As of 31 December 202, confirmation of letter of credit is TL 1,533 (31 December 2021: TL 1,789)
1.b.2 Certain guarantees, tentative guarantees, sureties and similar transactions
None except the items explained above in note 1.b.1.
1.c Non-cash loans
1.c.1 Total Non-cash loans
Current Period
Prior Period
Non-Cash Loans for Cash Loans
-
-
With Original Maturity up to 1 Year
-
-
With Original Maturity of More Than 1 Year
-
-
Other Non-Cash Loans
825,281
449,448
Total
825,281
449,448
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
93
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
III. Explanations and Notes Related to Off-Balance Sheet Items (continued)
1. Information on off balance sheet liabilities (continued)
1.c Non-cash loans (continued)
1.c.2 Sector risk concentration of non-cash loans
Current Period
Prior Period
TL
(%)
FC
(%)
TL
(%)
FC
(%)
Agriculture
-
-
-
-
-
-
-
-
Farming and Stockbreeding
-
-
-
-
-
-
-
-
Forestry
-
-
-
-
-
-
-
-
Fishery
-
-
-
-
-
-
-
-
Manufacturing
132,515
43
117,835
23
62,712
44
37,033
12
Mining
-
-
-
-
-
-
-
-
Production
132,515
43
117,835
23
62,712
44
37,033
12
Electricity, Gas, Water
-
-
-
-
-
-
-
-
Construction
-
-
-
-
-
-
-
-
Services
168,155
54
386,931
75
76,233
53
258,214
85
Wholesale and Retail Trade
2,314
1
42,436
8
2,085
1
31,869
10
Hotel, Food and Beverage Services
-
-
-
-
-
-
-
-
Transportation and Telecommunication
3,463
1
11,234
2
2,196
2
7,500
2
Financial Institutions
156,775
50
333,261
65
66,429
46
218,845
73
Real Estate and Renting Services
5,603
2
-
-
5,523
4
-
-
“Self-Employment’’ Type Services
-
-
-
-
-
-
-
-
Educational Services
-
-
-
-
-
-
-
-
Health and Social Services
-
-
-
-
-
-
-
-
Other
10,306
3
9,539
2
5,202
3
10,054
3
Total
310,976
100
514,305
100
144,147
100
305,301
100
1.c.3 Non-cash loans classified under Group I and II
Group I
Group II
TL
FC
TL
FC
Letters of Guarantee
310,976
512,772
-
-
Bank Acceptances
-
-
-
-
Letters of Credit
-
1,533
-
-
Endorsements
-
-
-
-
Underwriting Commitments
-
-
-
-
Factoring Related Guarantees
-
-
-
-
Other Commitments and Contingencies
-
-
-
-
Total
310,976
514,305
-
-
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
94
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
III. Explanations and Notes Related to Off-Balance Sheet Items (continued)
2. Information on financial derivative instruments
Derivative Transactions per Their Purposes
Trading
Risk Management
Current
Period
Prior
Period
Current
Period
Prior
Period
Derivatives Held for Trading
Foreign Currency Related Derivative Transactions (I)
43,493,521
6,970,011
-
-
Currency Forwards
19,897,051
2,562,823
-
-
Currency Swaps
23,146,979
4,407,188
-
-
Currency Futures
449,491
-
-
-
Currency Options
-
-
-
-
Interest Rate Related Derivative Transactions (II)
-
-
-
-
Interest Rate Forwards
-
-
-
-
Interest Rate Swaps
-
-
-
-
Interest Rate Futures
-
-
-
-
Interest Rate Options
-
-
-
-
Other Derivatives Held for Trading (III)
-
-
-
-
A. Total Derivatives Held for Trading (I+II+III)
43,493,521
6,970,011
-
-
Derivatives Held for Risk Management
-
-
-
-
Fair Value Hedge (1)
-
-
-
-
Cash Flow Hedge (2)
-
-
-
-
Net Foreign Investment Hedge
-
-
-
-
B. Total Derivatives Held for Risk Management
-
-
-
-
Total Derivative Transactions(A+B)
43,493,521
6,970,011
-
-
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
95
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
III. Explanations and Notes Related to Off-Balance Sheet Items (continued)
3. Information on credit derivatives and risk exposures on credit derivatives
None (31 December 2021: None).
4. Explanations on contingent liabilities and assets
As of December 31, 2022, there are ongoing lawsuits against the Bank, and the Bank management did not
deem it necessary to make a provision due to the low probability of loss and cash outflow.
5. Explanations on services provided on behalf of third parties
The Bank provides purchase and sales of the financial instruments and custody services on behalf of the
third parties. Financial instruments (notional values) held on behalf of the individuals and corporates by
the Bank are as follows:
Current Period
Prior Period
Treasury Bonds- TL
70,000
-
Government Bonds-TL
4,496,998
11,483,781
Government Bonds- FC
-
5,872,920
Private Sector Bonds-TL
8,500
8,500
Warrants
-
-
Issued Eurobonds from Treasury - USD
-
-
Issued Eurobonds from Treasury - EURO
-
-
Stocks-TL
4,972,250
5,124,171
Stocks-FC
-
-
Cheques in Portfolio-TL
80,508
91,205
Cheques in Portfolio-FC
-
-
Other
186,966
129,775
Total
9,815,222
22,710,352
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
96
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
IV. Explanations and Notes Related to Income Statement
1. Information on interest income:
1.a Information on interest income on loans
(1)
Current Period
Prior Period
TL
FC
TL
FC
Short-Term Loans
632,052
43,747
231,028
12,063
Medium/Long-Term Loans
-
1,454
-
-
Interest on Non-Performing Loans
-
-
-
-
Premiums Received from Resource Utilisation Support Fund
-
-
-
-
Total
632,052
45,201
231,028
12,063
(1)
Includes also the fee and commission income on cash loans.
1.b Information on interest income on banks
Current Period
Prior Period
TL
FC
TL
FC
Domestic Banks
68,435
1,101
176,349
3,421
Central Bank of Turkey
6,743
-
12,196
-
Foreign Banks
178
3,002
215
1,163
Foreign Head Offices and Branches
-
-
-
-
Total
75,356
4,103
188,760
4,584
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
97
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
1.c Information on interest income on marketable securities
Current Period
Prior Period
TL
FC
TL
FC
Financial Assets Measured at Fair Value through
Profit/Loss
265,029
-
8,237
-
Financial Assets Measured at Fair Value through Other
Comprehensive Income
45,484
-
23,681
-
Financial Assets Measured at Amortised Cost
-
-
-
-
Total
310,513
-
31,918
-
1.d Information on interest income received from associates and subsidiaries
None (31 December 2021: None).
2. Information on interest expenses
2.a Information on interest expense on funds borrowed
Current Period
Prior Period
TL
FC
TL
FC
Banks
58,109
28,964
129,722
382
Central Bank of Turkey
-
-
-
-
Domestic Banks
-
-
-
-
Foreign Banks
58,109
28,964
129,722
382
Foreign Head Offices and Branches
-
-
-
-
Other Institutions
-
-
-
-
Total
58,109
28,964
129,722
981
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
98
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
2.b Information on interest expense paid to associates and subsidiaries
None (31 December 2021: None).
2.c Interest expense on securities issued
None (31 December 2021: None).
2.d Maturity structure of the interest expense on deposits
Time Deposits
Current Period
Demand
Deposits
Up to1
Month
1-3
Months
3-6
Months
6-12
Months
1 year
and over
Total
TL
Bank Deposits
-
12,149
-
-
-
-
12,149
Saving Deposits
-
-
-
-
-
-
-
Public Sector Deposits
-
-
-
-
-
-
-
Commercial Deposits
428
42,879
-
-
-
-
43,307
Other Deposits
-
488
-
-
-
-
488
“7 Days Notice” Deposits
-
Total
428
55,516
-
-
-
-
55,944
Foreign Currency
Foreign Currency Deposits
-
419
20
-
-
-
439
“7 Days Notice” Deposits
-
-
-
-
-
-
-
Precious Metal Deposits
-
-
-
-
-
-
-
Bank Deposits
-
312
-
-
-
-
312
Total
-
731
20
-
-
-
751
Grand Total
428
56,247
20
-
-
-
56,695
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
99
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
2. Information on interest expenses (continued)
2.d Maturity structure of the interest expense on deposits
Prior Period
Demand
Deposits
Up to1
Month
1-3
Months
3-6
Months
6-12
Months
1 year
and
over
Total
TL
Bank Deposits
223
15,353
-
-
-
-
15,576
Saving Deposits
-
-
-
-
-
-
-
Public Sector Deposits
-
-
-
-
-
-
-
Commercial Deposits
88
25,331
2,750
-
-
-
28,169
Other Deposits
-
2,331
-
-
-
-
2,331
“7 Days Notice” Deposits
-
Total
311
43,015
2,750
-
-
-
46,076
Foreign Currency
Foreign Currency Deposits
-
1
5
-
-
-
6
“7 Days Notice” Deposits
-
-
-
-
-
-
-
Precious Metal Deposits
-
-
-
-
-
-
-
Bank Deposits
-
5
-
-
-
-
5
Total
-
6
5
-
-
-
11
Grand Total
311
43,021
2,755
-
-
-
46,087
3. Information on dividend income
None (31 December 2021: None).
4. Information on trading loss/income (Net)
Current Period
Prior Period
Profit
11,064,727
7.724.149
Capital Market Transactions
1,605,408
32.084
Derivative Financial Transactions
(*)
4,414,340
1.144.867
Foreign Exchange Gains
5,044,979
6.547.198
Losses (-)
10,411,885
7.638.686
Capital Market Transactions
1,504,969
17.861
Derivative Financial Transactions
(*)
3,506,523
1.130.085
Foreign Exchange Losses
5,400,393
6.490.740
Net Income/(Losses) (Net)
652,842
85.463
(*)
Foreign exchange net gain from derivative transactions is amounting to TL 876,068 (31 December 2021: TL
21,593 net loss).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
100
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
5. Information on other operating income
As of 31 December 2022, the Bank’s other operating income is amounting to TL 24,931 (31 December
2021: TL 8,924).
Current Period
Prior Period
Other Service Income
Service Income – FC
22,730
6,404
Provision cancellation proceeds
1,184
1,876
Service Income – TL
-
284
Other
1,017
360
Total
24,931
8,924
6. Provisions for losses on loans and receivables
Current Period
Prior Period
Expected Credit Loss
7,274
1,114
12 month expected credit loss (stage 1)
7,274
1,114
Significant increase in credit risk (stage 2)
-
-
Non-performing loans (stage 3)
-
-
Marketable Securities Impairment Provisions
-
-
Financial Assets at Fair Value through Profit or Loss
-
-
Financial Assets at Fair Value through Other Comprehensive Income
-
-
Other Impairment Losses
-
-
Associates
-
-
Subsidiaries
-
-
Joint Ventures
-
-
Other
-
-
Total
7,274
1,114
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
101
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
7. Information on other operational expenses
Current Period
Prior Period
Reserve for Employee Termination Benefits
377
54
Bank Social Aid Fund Deficit Provision
-
-
Impairment Expenses of Fixed Assets
-
-
Depreciation Expenses of Fixed Assets
17,356
13,348
Impairment Expenses of Intangible Assets
-
-
Goodwill Impairment Expenses
-
-
Amortization Expenses of Intangible Assets
3,655
3,035
Impairment Expenses of Equity Participations for which Equity Method is
Applied
-
-
Impairment Expenses of Assets Held for Resale
-
-
Depreciation Expenses of Assets Held for Resale
-
-
Impairment Expenses of Fixed Assets Held for Sale
-
-
Other Operating Expenses
218,627
107,216
Leasing Expenses on TFRS 16 Exceptions
-
-
Maintenance Expenses
4,581
2,561
Advertisement Expenses
-
-
Other Expenses
(*)
214,046
104,655
Loss on Sales of Assets
-
14
Other
26,965
16,694
Total
266,980
140,361
(*)
Other expenses included communication expenses amounting to TL 13,708 (31 December 2021: TL 10,510)
received benefits from the outside and service costs amounting to TL 6,927 (31 December 2021: TL 4,212), Information
systems and technology expenses amounting to TL 100,809 (31 December 2021: TL 34,510), Deutsche Bank Group
Management Service expenses amounting to TL 19,279 (31 December 2021: TL 7,530) and other expenses amounting
to TL 73,323 (31 December 2021: TL 47,893).
8. Fees for Services Received from Independent Auditor / Independent Audit Firm
The fee information for the reporting period regarding the services received from the independent auditor or
independent audit firm in accordance with the decision of the POA dated March 26, 2021 is given in the table
below.
(VAT excluded balances)
Current Period
Prior Period
Independent audit fee for the reporting period 944 618
Fees for tax advisory services - -
Fees for other assurance services - -
Fees for services other than independent audit - -
Total
944
618
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
102
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
9. Information on provision for taxes from continuing and discontinued operations
For the accounting period ending on 31 December 2022, there is a pre-tax profit of 1,131,040 TL (31
December 2021: 241,277 TL profit).
9. Information on provision for taxes from continuing and discontinued operations
9.a Information on current tax income/ expense and deferred tax income/expense from continuing and
discontinued operations
As of 31 December 2022 the Bank has deferred tax expenseamounting to TL 46,145 (31 December 2021:
deferred tax incomeamounting to TL 1,988) and current tax expense amounting to TL 236,778 (31
December 2021: TL 62,316).
9.b Deferred tax income or expense from temporary differences of continuing and discontinued
operations
Deferred tax expenseamounting to TL 46,145 (31 December 2021: deferred tax incomeamounting to TL
1,988) is arising from timing differences resulting from the temporary differences between applied
accounting policies and tax regulations.
9. c Deferred tax income/expense from the temporary differences tax losses or tax exemptions of
continuing and discontinued operations
As of 31 December 2022 deferred tax income presented in the income statement includes the net amount
remaining after netting of tax deductible timing differences and taxable timing differences. The Bank does
not have prior years’ losses.
10. Information on net operating profit/loss after taxes of continuing operations and discontinued
operations
As of 31 December 2022 the Bank has profit after tax amounting to TL 848,117 (31 December 2021: TL
180,949).
11. Information on net profit or loss for the period
11.1 The nature and amount of certain income and expense items from ordinary operation is disclosed if
the disclosure for nature, amount and repetition rate of such items is required for the complete
understanding of the Bank’s performance for the period
The main operations of the Bank are interbank money market transactions, marketable securities
transactions, foreign currency transactions, custody services and providing collateralised non-cash loans.
Therefore; net interest income, net trading income, net foreign exchange gain and fees and commission
income from custody services are the most important captions of the Bank’s income statement.
Current Period
Prior Period
Interest Income/(Expense), Net
834,866
320,555
Income/(Loss) from Capital Market Transactions, Net
100,439
14,223
Gain/(Loss) from Derivative Financial Transactions, Net
907,817
14,782
Profit/Loss on Foreign Exchange Transactions, Net
(355,414)
56,458
Commissions from Custody Operations
40,082
33,768
Commissions from Intermediary Services
54,831
40,990
Commissions from Non-cash loans
6,681
4,130
Other Commission Income
1,871
1,256
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
103
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
IV. Explanations and notes related to income statement (continued)
11. Information on net operating profit/loss after taxes of continuing and discontinued operations
11.2 Effects of changes in accounting estimates on the current and following periods’ profit/loss
There is no significant change in accounting estimates which would affect the current or following period.
12. Components of other items in income statement, as each sub-account exceeding 20% of the total
separately, exceeding 10% of total income statement
Other fee and commission income:
Current Period
Prior Period
TL
FC
TL
FC
Commissions from Custody Operations
40,082
-
33,768
-
Commissions from Intermediary Services
-
54,831
-
40,990
Other Fee and Commissions
1,255
616
702
554
Total
41,337
55,447
34,470
41,544
Other fee and commission expense:
Current Period
Prior Period
TL
FC
TL
FC
Paid Stock Market Share
8,491
-
556
-
Service Expenses – FC
-
7,032
-
2,571
Required Reserve Commissions Paid
-
10,062
-
-
Custody Service Commissions
6,695
-
7,171
-
Commissions Given to Reporters
-
2,235
-
1,242
Paid Brokerage Commissions and Fees
-
1,231
-
748
Other Commissions and Fees
2,126
1
634
12
Total
17,312
20,561
8,361
4,573
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
104
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
V. Explanations and Notes Related to Changes in Shareholders’ Equity
1. Information on increases due to cash flow hedges
None (31 December 2021: None).
2. Reconciliation of foreign exchange differences at beginning and end of current period
None (31 December 2021: None).
3. Information on decrease due to revaluation of fair value through other comprehensive income
“Unrealized gains and losses” arising from the difference between the amortized cost and the fair value of
financial assets at fair value through other comprehensive income are not reflected in the statement of profit
or loss of the period until the acquisition of the asset, sale of the asset, the disposal of the asset, and
impairment of the asset and they are accounted under the “Accumulated other comprehensive income or
expense to be reclassified through profit or loss” under shareholders’ equity.
4. Information on distribution of profit
At the Ordinary General Assembly meeting held on March 31, 2022, the Bank has decided to distribute a
portion of the TL 180,949 net profit for the year ended December 31, 2021, in the amount of 17,896 TL
(17,001 TL after tax) to the shareholders as dividend, in accordance with the permission granted by the
BDDK. Additionally, 1,115 TL will be reserved as legal reserve and 161,938 TL will be transferred to
extraordinary reserves. The relevant dividend payment has been made in cash to the shareholders on April
29, 2022.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
105
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
VI. Explanations and Notes Related to Statement of Cash Flows
1. Information on other items and effect of exchange rate on cash and cash equivalents in Cash Flow
Statement;
The “others” account included in “operating profit before changes in operating assets and liabilities” are
comprised of net trading gain/loss, impairment loss provision on loans and receivables and other operating
income/loss. The “net increase/ (decrease) in other liabilities” account in “changes in operating assets and
liabilities” is comprised of the changes in miscellaneous liabilities, other liabilities, provision expenses,
lease payables and tax liabilities. The effect of change in foreign exchange rate on cash and cash equivalents
as of 31 December 2022 is approximately realized as increase amounting to TL 309,488 (31 December
2021: increase of TL 246,523).
2. Cash and cash equivalents at the beginning of the period
As of 31 December 2022 and 31 December 2021, cash equivalents include cash and effective storage
balances, cash equivalents TC Central Bank accounts, bank deposits with original maturities of less than
three months and receivables from the interbank money market.
1 January 2022
1 January 2021
Cash
-
659
Cash Equivalents
1,251,783
1,135,393
Balances with Central Bank of Turkey
1,015,311
319,361
Banks’ Demand Deposits and Time Deposits Whose Original
Maturities Up to 3 Months
126,480
106,032
Receivables from money market
109,992
710,000
Total
1,251,783
1,136,052
3. Cash and cash equivalents at the end of the period
31 December 2022
31 December 2021
Cash
-
-
Cash Equivalents
1,584,616
1,251,783
Balances with Central Bank of Turkey
1,575,783
1,015,311
Banks’ Demand Deposits and Time Deposits Whose Original
Maturities Up to 3 Months
8,833
126,480
Money market placements
-
109,992
Total
1,584,616
1,251,783
4. Restricted cash and cash equivalents due to legal requirements or other reasons
There are no cash and cash equivalents restricted for the usage of the Bank by legal limitations and other
reasons (31 December 2021: None).
There is no additional information that needs to be disclosed in addition to those disclosed in Note 1.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
106
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
VII. Explanations and Notes Related to Bank’s Risk Group
1. Transactions with the Bank’s risk group; lendings and deposits and other related party transactions
outstanding at period end and income and expenses from such transactions incurred during the
period
1.1 Current period
Associates, Subsidiaries
and Joint Ventures
Direct and Indirect
Shareholders of the Bank
Other Components in
Risk Group
Bank’s Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Loans and Receivables
Balance at the Beginning of the Period
-
-
134,769
178,552
-
15,000
Balance at the End of the Period
-
-
183,886
422,120
-
15,000
Funds Borrowed
Balance at the Beginning of the Period
-
-
2,994,291
-
-
-
Balance at the End of the Period
-
-
5,897,204
-
-
-
Interest and Commission Income
-
-
54,837
3,772
-
-
Interest and Commission Expense
-
-
96,430
-
-
-
1.2 Prior Period
Associates, Subsidiaries
and Joint Ventures
Direct and Indirect
Shareholders of the Bank
Other Components in
Risk Group
Bank’s Risk Group
Cash
Non-Cash
Cash
Non-Cash
Cash
Non-Cash
Loans and Receivables
Balance at the Beginning of the Period
-
-
60,267
152,020
232
5,000
Balance at the End of the Period
-
-
134,769
178,552
-
15,000
Funds Borrowed
Balance at the Beginning of the Period
-
-
1,739,364
-
-
-
Balance at the End of the Period
-
-
2,994,291
-
-
-
Interest and Commission Income
-
-
41,019
1,851
-
500
Interest and Commission Expense
-
-
133,937
-
2,431
-
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
107
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
VII. Explanations and Notes Related to Bank’s Risk Group
1.3 Information on deposits of the Bank’s risk group
Bank’s Risk Group
Associates. Subsidiaries and
Joint Ventures
Direct and Indirect
Shareholders of the Bank
Other Components in
Risk Group
Current
Period
Prior
Period
Current
Period
Prior
Period
Current
Period
Prior
Period
Deposits
Balance at the Beginning of the Period
-
-
42,035
13,098
-
34,881
Balance at the End of the Period
-
-
19,947
42,035
-
-
Interest Expenses
-
-
-
92
-
2,431
1.4 Information on forward and option agreements and other similar agreements with the Bank’s risk
group
Bank’s Risk Group
Associates, Subsidiaries
and Joint Ventures
Direct and Indirect
Shareholders of the
Bank
Other Components in Risk
Group
Current
Period
Prior
Period
Current
Period
Prior
Period
Current
Period
Prior
Period
Transactions at Fair Value
Through Profit and Loss
Beginning of the Period
-
-
1,070,766
571,081
-
-
End of the Period
-
-
4,237,776
1,070,766
-
-
Total Profit / Loss
-
-
(183,992)
45,428
-
253
Transactions for hedging
purposes
Beginning of the Period
-
-
-
-
-
-
End of the Period
-
-
-
-
-
-
Total Profit / Loss
-
-
-
-
-
-
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
108
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
VII. Explanations and Notes Related to Bank’s Risk Group (continued)
2. Information on the Bank’s risk group
2.1 The relations with entities that are included in the Bank’s risk group and controlled by the Bank
The Bank performs various transactions with the group companies as a part of the banking transactions in
accordance with the ordinary bank-client relationship and market conditions within the limitations
determined by the Banking Law.
2.2 The type of transaction, the amount and its ratio to total transaction volume, the amount of
significant items and their ratios to total items, pricing policy and other issues
Current Period
Prior Period
Amount
According to
the Amounts
in the
Financial
Statements%
Amount
According to
the Amounts
in the
Financial
Statements%
Banks
5,949
67%
45,069
36%
Loans and Other Receivables
177,937
5%
89,700
3%
Non-cash Loans
437,120
53%
193,552
43%
Deposits
19,947
1%
42,035
3%
Interest Income on Loans
5
-
29
-
Interest Expense on Deposits
-
-
2,523
5%
Interest Paid on Loans Used
87,073
100%
130,104
100%
Credits Received
5,897,204
100%
2,994,291
100%
Fees and Commissions Received
58,604
89%
43,341
64%
Commissions Given
9,357
10%
3,741
5%
Other Operating Income
14,844
60%
5,997
67%
Other Operating Expenses
115,781
43%
39,490
28%
Derivative Financial Instruments
4,237,776
20%
1,070,766
31%
Terms of transactions made with group companies are set in accordance with the market prices, if market
prices do not exist cost plus method is used. Except for the situations requiring separate disclosure, there
is not any account balance that is similar in nature and presented as an aggregate line.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
109
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
VII. Explanations and Notes Related to Bank’s Risk Group (continued)
2. Information on the Bank’s risk group (continued)
2.3 Transactions recognized according to equity pick-up method
The Bank has no transactions recognized according to equity pick-up method.
2.4 Information on transactions such as purchase-sale of immovable and other assets, purchase-sale of
service, agent agreements, financial lease agreements, transfer of the information gained as a result
of research and development, licence agreements, financing (including loans and cash or in kind
capital), guarantees, collaterals and management contracts
As of December 31, 2022, there are no buying and selling transactions of real estate and other assets,
agency agreements, financial leasing agreements, transfer of research and development information, and
licensing agreements involving the risk group that the Bank is a part of.
The Bank receives information technology and software services from Deutsche Bank Group companies.
Under the service agreements signed with Deutsche Bank AG, the Bank obtains service revenue based on
the transfer pricing agreements determined for the brokerage services provided by its sales representatives
in transactions carried out by other group banks.
Under the agreement signed with Deutsche Bank AG in January 2004, which is valid from that date
onwards, the Bank pays a service fee to Deutsche Bank AG for global and regional management, leadership,
and coordination activities provided to the Bank by senior executives of Deutsche Bank AG, and also
receives a service fee as long as the Bank's staff provides these services.
Under the agreement signed with Deutsche Bank AG in January 2005, which is valid from that date
onwards, Deutsche Bank AG pays a fee to the Bank for the services provided related to financial sector
cash management products.
To be able to provide an effective and coordinated Corporate Banking service, the Bank receives cash
management and custody services in the areas of global and regional management, leadership, and
coordination activities from group companies with expertise and infrastructure in Global Corporate
Banking functions, and pays a certain fee for the services received.
The Bank receives consultancy services from group companies in compliance with group standards in the
areas of combating financial crimes and compliance.
The Bank receives services in finance, risk, information technology, and human resources from Deutsche
Bank Group companies.
The Bank provides support/advisory services regarding bringing parties together, preparing documentation,
providing reference prices for credit, foreign exchange, and securities transactions, collateralization and
monitoring of collateral, conversion of collateral to cash, as well as economic evaluation, customer
identification and prevention of money laundering, and compliance with tax, legal, and regulatory matters
to Deutsche Bank AG, its branches, affiliated companies and subsidiaries in Turkey, or affiliated companies
and subsidiaries of these institutions located abroad that have funding needs.
2.5 Information on benefits provided to top management
Benefits paid to key management personnel in the current period amounting to TL 83,345 (31 December
2021: TL 27,469).
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
110
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
VIII. Explanations and notes to the domestic, foreign, off-shore branches and foreign representatives of
the Bank
The Bank has no domestic, foreign or off-shore branches.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
111
EXPLANATIONS AND NOTES TO FINANCIAL STATEMENTS (continued)
IX. Explanations and notes related to subsequent events
1. Transactions that have not been finalized yet regarding post-balance sheet matters and their effects
on the financial statements
On January 5, 2023, in accordance with the decision taken at the Extraordinary General Assembly meeting,
the Bank has increased its paid-in capital from 135,000 TL to 470,000 TL through a cash capital increase.
As a result, the relevant article of the Articles of Association was amended and registered on January 17,
2023.
An earthquake occurred in the southeastern part of Turkey that affected many of our provinces. Considering
the region in which the Bank operates, no direct impact is expected on the Bank's operations.
The regulation dismantling the retirement age requirement for employees who started their working life
before 8 September 1999 was published in the Official Gazette on 3 March 2023. Accordingly, the
employees who have completed the number of premium days and social insurance period are entitled to
retirement. The regulation is expected to have an impact on the timing and probability of settlement of
severance payments. The regulation is not expected to have a significant impact on the Bank’s financial
position and financial performance.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
112
SECTION SIX
I. Other explanations related to the Bank’s operations
None.
DEUTSCHE BANK ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022
(Unless otherwise stated amounts are expressed in thousands of Turkish Lira (“TL”))
113
SECTION SEVEN
EXPLANATIONS ON AUDITORS’ REPORT
I. Explanations on the auditors’ report
The unconsolidated financial statements for the year ended 31 December 2022 were audited by Güney
Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi (A member firm of Ernst&Young
Global Limited) and Auditors’ Report dated 10 March 2023 is presented in the introduction of this report.
II. Explanations and notes prepared by the independent auditor
None.
