VKF_FRAE_2017

135 VakıfBank Annual Report 2017 Page: SECTION ONE General Information I. History of the Bank including its incorporation date, initial legal status, amendments to legal status 136 II. The Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change in shareholder structure during the period and information on Bank’s risk group 136-137 III. Information on the chairman and members of the board of directors, audit committee members, general manager, assistant general managers and their shares in the Bank 137-138 IV. Information on the Bank’s qualified shareholders 138 V. Information about the services and nature of activities of the Bank 139 VI. Current or likely actual or legal barriers to immediate transfer of equity or repayment of debts between Bank and its subsidiaries 139 SECTION TWO Unconsolidated Financial Statements I. Balance sheet – Assets 140 II. Balance sheet - Liabilities and equity 141 III. Off-balance sheet items 142 IV Statement of income 143 V. Statement of profit and loss items accounted under shareholders’ equity 144 VI. Statement of changes in equity 145-146 VII. Statement of cash flows 147 VIII. Statement of profit distribution 148 SECTION THREE Accounting Policies I. Basis of presentation 149-150 II. Strategy for the use of financial instruments and information on foreign currency transactions 150-151 III. Information on associates and subsidiaries 151-152 IV. Information on forwards, options and other derivative transactions 152 V. Information on interest income and expenses 152 VI. Information on fees and commissions 152 VII. Information on financial assets 152-153 VIII. Information on impairment of financial assets 153-154 IX. Information on offsetting of financial instruments 154 X. Information on sales and repurchase agreements and securities lending 154 XI. Information on assets held for sale and discontinued operations and related liabilities 154 XII. Information on goodwill and other intangible assets 155 XIII. Information on tangible assets 155 XIV. Information on leasing activities 156 XV. Information on provisions, contingent liabilities and assets 156 XVI. Information on obligations of the Bank concerning employee rights 157-158 XVII Information on taxation 158-160 XVIII Information on cash and cash equivalents 160 XIX. Additional information on borrowings 160 XX. Information on issuance of equity securities 160 XXI. Information on confirmed bills of exchange and acceptances 160 XXII. Information on government incentives 160 XXIII. Information on segment reporting 161 XXIV. Other matters 161 SECTION FOUR Information Related To Financial Position and Risk Management I. Information on equity items 162-169 II. Credit risk 170-181 III. Foreign currency exchange risk 182-184 IV. Interest rate risk 184-186 V. Stock position risk 187-188 VI. Liquidity risk and liquidity coverage ratio 189-193 VII. Leverage ratio 194 VIII. Fair value of financial assets and liabilities 195-196 IX. Transactions carried out on behalf of customers, items held in trust 197 X. Segment reporting 197-199 XI. Information on risk management 200-220 SECTION FIVE Disclosures and Footnotes on Unconsolidated Financial Statements I. Information and disclosures related to assets 221-239 II. Information and disclosures related to liabilities 239-247 III. Information and disclosures related to off-balance sheet items 248-252 IV. Information and disclosures related to the statement of income 252-257 V. Information and disclosures related to statement of changes in shareholders’ equity 258 VI. Information and disclosures related to the statement of cash flows 259-260 VII. Information and disclosures related to the Bank’s risk group 260-262 VIII. Information on domestic, foreign and off-shore branches or investments and foreign representative offices 262 SECTION SIX Other Disclosures I. Other disclosures on the Bank’s activity 263 II. Information on the Bank’s rating given by international credit rating institutions 263 III. Significant events and matters subsequent to balance sheet date that are not resulted 264 SECTION SEVEN Independent Auditors’ Audit Report I. Information on Independent Auditors’ Report 264 II. Explanations and footnotes prepared by independent auditor 264