OTHER TOPICS

PERFORMANCE AND SALES BONUS

Total amount of TRY 63.3 million, consisting of TRY 55.0 million performance bonus, 7.5 million sales bonus and TRY 0.8 million other bonuses is reserved to be paid in 2014.

REMARKS ON PRIVATE AUDIT AND THE PUBLIC AUDIT

Başaran Nas Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. has been the external audit company for TEB A.Ş. and its subsidiaries for 2013. On the other hand, routine audits have been carried out by Banking Regulation and Supervision Agency (BRSA) and Turkish Republic Central Bank.

INFORMATION ABOUT THE LAWSUITS FILED AGAINST THE BANK

There were 1,309 law cases against the bank totaling amount TL 61,931,346.75 in 2013.
Total 5,794 of cases sued before and during 2013 still proceeds with a total value of TL 224,816,698.93. As of 31.12.2013, TL 35,502,365 provision has been reserved.

Competition Board’s administrative fine due to 12 Banks’ violation of 11-55/1438-M Article 4 of the Law on Protection of Competition (Law No. 4054) on November 2, 2011, total value of TRY 8,001,544.50 was paid on August 16, 2013. 
A lawsuit still underway was filed for the cancellation of the administrative fee.

INFORMATION ON JURIDICAL AND ADMINISTRATIVE SANCTIONS AGAINST TH E BANK and BOARD  MEMBERS

Total amount of fine imposed on the bank by regulatory organizations and auditors is TRY 8,584,900 during 2013. Competition Board’s administrative fine due to 12 Banks violation of 11-55/1438-M Article 4 of the Law on Protection of Competition (Law No. 4054) on November 2, 2011with a total value of TRY 8,001,544.50 was paid on August 16, 2013.

A lawsuit still underway was filed for the cancellation of the administrative fee.

INFORMATION ON SUBSIDIARY SHARES

Within the context of merger process of Fortis Faktoring A.Ş. and TEB Faktoring A.Ş. ,which is a subsidiary of TEB A.Ş., TEB Faktoring’s direct share on Fortis Faktoring A.Ş. increased to 99.9%, therefore TEB A.Ş.’s indirect share on Fortis Faktoring reached to 99.98%.

As of July 1, 2013, as a result of merger, Fortis Faktoring legal entity is terminated and by the way of acquisition whereby all the assets and liabilities of Fortis Faktoring A.Ş. was transferred to TEB Faktoring A.Ş.

INFORMATION/REMARKS REGARDING PARENT COMPANY

During 2013, there are no legal actions taken that would ultimately benefit parent company’s subsidiaries.  All the transactions between parent company’s subsidiaries and our Bank were carried out under the principles of market practices, commercial prudence and integrity, and trustworthiness. The Bank did not experience loss, therefore compensation was not necessary.

There was no need to take precautions that would benefit our direct or indirect parent companies; therefore no action/loss occurred against our Bank.

There was no need to take precautions that would benefit parent companies subsidiaries, therefore no action/loss occurred against our Bank.