Dividend Distribution Policy
After deducting any sums which would be compulsory for the Bank to pay or set aside such as general expenditures and miscellaneous depreciation costs as well as any amount of taxes which would be compulsory for the Bank to pay, from the calculated incomes at the end of the account year, the remaining sum shall constitute the net income; after deducting previous years losses if any, the net income shall be distributed as follows:
First Scheme Legal Reserves:
a) 5% of this sum shall be allocated to the legal reserves.
b) Out of the remaining amount, such rate and amount as established by the Capital Market Boards of Turkey is allocated to the first dividend.
c) After deducting any sums specified in item (a) and (b) from the net income, the General Assembly shall be authorized to distribute such remaining amount, in part or in full, or to allocate as the extraordinary reserves.
General Legal Reserves:
d) Out of the sum calculated after deducting a dividend at the 5% of the paid-up capital from the established amount to be distributed to the shareholders and other parties participating in the profit, ten percent shall be added to the general legal reserves in accordance with Article 519, Paragraph 2, Item c of the Turkish Commercial Code.
Unless the discretionary legal reserves are duly set aside , and unless the dividends determined for the shareholders are distributed in cash and/or in the form of share certificates as per the Articles of Association, no decision may be adopted to allocate further legal reserves, to pass any profits to the following year, or to distribute any dividends to the members of the Board of Directors as well as any officials, workers and employees, to foundations established for various purposes, and to similar person and/or persons.
The date and manner of distribution to shareholders of the annual profit shall be determined by the General Assembly upon a proposal by the Board of Directors prepared under the relevant legislation issued by Capital Market Board. As of the accounting period of dividend, irrespect of its issuing and acquiring dates, annual profit shall be distributed equally to all shares existed. The profits distributed according to the provisions of this article of association shall not be recalled.