VKF_FRAE_2017

PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 142 VakıfBank Annual Report 2017 CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUEDIN TURKISH, SEE NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI UNCONSOLIDATED OFF-BALANCE SHEET ITEMS AS AT DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) Audited Current Period December 31, 2017 Audited Prior Period December 31, 2016 Notes TL FC Total TL FC Total A. OFF-BALANCE SHEET COMMITMENTS AND CONTINGENCIES (I+II+III) 80,248,423 79,578,712 159,827,135 71,071,210 75,396,231 146,467,441 I. GUARANTEES AND SURETIES V-III-2-4 32,109,922 18,657,662 50,767,584 26,743,456 13,704,968 40,448,424 1.1 Letters of guarantee 32,035,061 8,133,759 40,168,820 26,687,992 5,626,758 32,314,750 1.1.1 Guarantees subject to State Tender Law 3,163,898 4,099,756 7,263,654 3,203,501 2,571,209 5,774,710 1.1.2 Guarantees given for foreign trade operations 1,053,872 - 1,053,872 1,059,516 - 1,059,516 1.1.3 Other letters of guarantee 27,817,291 4,034,003 31,851,294 22,424,975 3,055,549 25,480,524 1.2 Bank acceptances 44,700 1,510,854 1,555,554 53,702 1,143,484 1,197,186 1.2.1 Import letter of acceptance 671 519,399 520,070 - 395,874 395,874 1.2.2 Other bank acceptances 44,029 991,455 1,035,484 53,702 747,610 801,312 1.3 Letters of credit 30,161 8,963,991 8,994,152 1,762 6,911,368 6,913,130 1.3.1 Documentary letters of credit 30,161 8,963,991 8,994,152 1,762 6,911,368 6,913,130 1.3.2 Other letters of credit - - - - - - 1.4 Guaranteed pre-financings - 3,006 3,006 - 2,796 2,796 1.5 Endorsements - - - - - - 1.5.1 Endorsements to the Central Bank of Republic of Turkey - - - - - - 1.5.2 Other endorsements - - - - - - 1.6 Marketable securities underwriting commitments - - - - - - 1.7 Factoring related guarantees - - - - - - 1.8 Other guarantees - 43,996 43,996 - 16,890 16,890 1.9 Other sureties - 2,056 2,056 - 3,672 3,672 II. COMMITMENTS 31,039,233 17,286,799 48,326,032 26,475,216 12,535,618 39,010,834 2.1 Irrevocable commitments 27,979,658 961,190 28,940,848 23,451,047 1,502,055 24,953,102 2.1.1 Asset purchase commitments V-III-1 793,979 961,190 1,755,169 1,362,697 1,502,055 2,864,752 2.1.2 Deposit purchase and sales commitments - - - - - - 2.1.3 Share capital commitments to associates and subsidiaries V-III-1 - - - - - - 2.1.4 Loan granting commitments V-III-1 11,843,577 - 11,843,577 9,817,555 - 9,817,555 2.1.5 Securities issuance brokerage commitments - - - - - - 2.1.6 Commitments for reserve deposit requirements - - - - - - 2.1.7 Commitments for cheque payments V-III-1 2,542,741 - 2,542,741 2,154,102 - 2,154,102 2.1.8 Tax and fund obligations on export commitments - - - - - - 2.1.9 Commitments for credit card limits V-III-1 10,534,862 - 10,534,862 8,682,835 - 8,682,835 2.1.10 Commitments for credit card and banking operations promotions 761,674 - 761,674 300,108 - 300,108 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 1,502,825 - 1,502,825 1,133,750 - 1,133,750 2.2 Revocable commitments 3,059,575 16,325,609 19,385,184 3,024,169 11,033,563 14,057,732 2.2.1 Revocable loan granting commitments 3,059,575 16,325,609 19,385,184 3,024,169 11,033,563 14,057,732 2.2.2 Other revocable commitments - - - - - - III. DERIVATIVE FINANCIAL INSTRUMENTS V-III-5 17,099,268 43,634,251 60,733,519 17,852,538 49,155,645 67,008,183 3.1 Derivative financial instruments held for risk management - - - - - - 3.1.1 Fair value hedges - - - - - - 3.1.2 Cash flow hedges - - - - - - 3.1.3 Net foreign investment hedges - - - - - - 3.2 Trading derivatives 17,099,268 43,634,251 60,733,519 17,852,538 49,155,645 67,008,183 3.2.1 Forward foreign currency purchases/sales 1,152,837 1,617,661 2,770,498 489,310 1,120,684 1,609,994 3.2.1.1 Forward foreign currency purchases 576,772 808,889 1,385,661 244,982 560,368 805,350 3.2.2.2 Forward foreign currency sales 576,065 808,772 1,384,837 244,328 560,316 804,644 3.2.2 Currency and interest rate swaps 10,344,359 30,420,079 40,764,438 16,314,487 37,172,783 53,487,270 3.2.2.1 Currency swaps-purchases 3,297,551 11,363,303 14,660,854 8,539,652 11,631,406 20,171,058 3.2.2.2 Currency swaps-sales 4,706,808 4,435,680 9,142,488 6,324,835 9,924,553 16,249,388 3.2.2.3 Interest rate swaps-purchases 1,170,000 7,310,548 8,480,548 725,000 7,808,412 8,533,412 3.2.2.4 Interest rate swaps-sales 1,170,000 7,310,548 8,480,548 725,000 7,808,412 8,533,412 3.2.3 Currency, interest rate and security options 426,094 431,542 857,636 142,676 730,632 873,308 3.2.3.1 Currency call options 412,706 13,400 426,106 121,124 306,804 427,928 3.2.3.2 Currency put options 13,388 418,142 431,530 21,552 423,828 445,380 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 Currency futures - - - - - - 3.2.4.1 Currency futures-purchases - - - - - - 3.2.4.2 Currency futures-sales - - - - - - 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 Other 5,175,978 11,164,969 16,340,947 906,065 10,131,546 11,037,611 B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) 1,283,071,577 805,680,121 2,088,751,698 1,043,040,320 580,201,858 1,623,242,178 IV. ITEMS HELD IN CUSTODY 54,525,860 4,245,640 58,771,500 54,374,804 4,027,246 58,402,050 4.1 Customers' securities held - - - - - - 4.2 Investment securities held in custody 42,177,802 135,880 42,313,682 43,319,878 147,806 43,467,684 4.3 Checks received for collection 9,976,508 2,483,954 12,460,462 9,130,796 2,502,025 11,632,821 4.4 Commercial notes received for collection 1,178,205 412,078 1,590,283 941,776 410,946 1,352,722 4.5 Other assets received for collection 2,152 151 2,303 2,152 141 2,293 4.6 Assets received through public offering - - - - - - 4.7 Other items under custody 309 76,380 76,689 309 66,081 66,390 4.8 Custodians 1,190,884 1,137,197 2,328,081 979,893 900,247 1,880,140 V. PLEDGED ITEMS 315,422,683 132,707,352 448,130,035 280,652,246 104,200,492 384,852,738 5.1 Securities 739,672 5,090 744,762 495,249 16,366 511,615 5.2 Guarantee notes 707,502 524,748 1,232,250 767,038 544,996 1,312,034 5.3 Commodities 33,014,517 759,683 33,774,200 31,750,967 775,907 32,526,874 5.4 Warranties - - - - - - 5.5 Real estates 240,511,071 108,037,406 348,548,477 230,129,196 86,340,346 316,469,542 5.6 Other pledged items 39,688,651 23,254,495 62,943,146 16,959,461 16,365,309 33,324,770 5.7 Pledged items-depository 761,270 125,930 887,200 550,335 157,568 707,903 VI. CONFIRMED BILLS OF EXCHANGE AND SURETIES 913,123,034 668,727,129 1,581,850,163 708,013,270 471,974,120 1,179,987,390 TOTAL OFF-BALANCE SHEET ITEMS (A+B) 1,363,320,000 885,258,833 2,248,578,833 1,114,111,530 655,598,089 1,769,709,619 The accompanying explanations and notes form an integral part of these financial statements.