TODAY’S – Asya shareholders snub ‘flawed’ financial results

Asya shareholders snub ‘flawed’ financial results Shareholders from Turkish Islamic lender Bank Asya have on Tuesday challenged the accuracy of a 2014 financial report released by the bankand#39s interim board, saying the report was legally flawed.On Tuesday, Bank Asya, whose management was taken over by regulators earlier this year, said it posted a net loss of TL 877 million ($336 million) in 2014 on shrinking loans and deposits.

In a written statement, Bank Asya shareholders said the financial results were released without bearing the signatures of the bankand#39s board members or CEO. andldquoThis breaches the related law regulating the Turkish banking industry and is a first in Turkish history,andrdquo Tuesdayand#39s statement by the shareholders read.

The shareholders said the interim board failed to provide a written report to an independent monitoring company before releasing the bankand#39s 2014 financial results. Bank Asya shareholders said the interim board cited the fact that there were ongoing studies on the financial report as the reason for not consulting an independent board and thus Tuesdayand#39s release was made prematurely.

andldquoOddly enough, the independent auditing firm, Ernst Young, which had monitored the balance sheet of the bank and its affiliates for two years and expressed a positive opinion of them, avoided commenting on the bankand#39s balance sheet during this period,andrdquo Tuesdayand#39s statement by the shareholders said. The statement added: andldquoThe auditing firm, which had provided a positive opinion of the bankand#39s balance sheet so far, went beyond its purpose with biased and misleading comments on the loss made by the bank.

andrdquoBank Asya, in which banking regulators seized a small stake last week over an alleged illegal share sale, had reported a net profit of TL 180.6 million in 2013.

Loan loss provisions amounted to 145 billion lira in 2014, almost half of which came in the final quarter, the bank said. Bank Asya wrote off TL 943 million worth of loans in 2014.

Loans and deposits contracted 24 percent and 12 percent respectively in the fourth quarter Regulators last month took over the management after the government said it had failed to meet some legal requirements.The banking watchdog said last week that Turkeyand#39s Savings Deposit Insurance Fund (TMSF) had seized preferred shares in Bank Asya held by a publishing company and a construction firm, citing irregularities in the sale of their parent company, Kaynak Holding, to a Dutch firm in January.

Bank Asya denies any irregularities.

SOURCE: Today’s Zaman