VKF_FRAE_2017

CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUEDIN TURKISH, SEE NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI EXPLANATIONS AND NOTES RELATED TO THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 164 VakıfBank Annual Report 2017 Current Period December 31, 2017 Amount as per the regulation before 1/1/2014 (*) In transition from Total Core Capital and Supplementary Capital (the capital) to Continue to Download Components - - Portion of the total of net long positions of investments made in Common Equity items of banks and financial institutions outside the scope of consolidation where the Bank owns 10% or less of the issued common share capital exceeding 10% of Common Equity of the Bank not to be deducted from the Common Equity, Additional Tier 1 Capital, Tier 2 Capital as per the 1st clause of the Provisional Article 2 of the Regulation on the Equity of Banks - - Portion of the total of net long positions of direct or indirect investments made in Additional Tier 1 and Tier 2 Capital items of banks and financial institutions outside the scope of consolidation where the Bank owns 10% or more of the issued common share capital exceeding 10% of Common Equity of the Bank not to be deducted from the Additional Tier 1 Capital and Tier 2 Capital as per the 1st clause of the Provisional Article 2 of the Regulation on the Equity of Banks - - Portion of the total of net long positions of investments made in Common Equity items of banks and financial institutions outside the scope of consolidation where the Bank owns 10% or more of the issued common share capital, deferred tax assets based on temporary differences and mortgage servicing rights not deducted from Common Equity as per the 1st and 2nd Paragraph of the 2nd clause of the Provisional Article 2 of the Regulation on the Equity of Banks - - TOTAL CAPITAL - - Total Capital 28,831,847 - Total Risk Weighted Amounts 185,800,511 - Capital Adequacy Ratios - - Core Capital Adequacy Ratio (%) 12.33 - Tier 1 Capital Adequacy Ratio (%) 12.31 - Capital Adequacy Ratio (%) 15.52 - BUFFERS - - Total buffer requirement 1.255 - Capital conservation buffer requirement (%) 1.250 - Bank specific counter-cyclical buffer requirement (%) 0.005 - Systemically important banks buffer requirement (%)** 0.000 - The ratio of Additional Common Equity Tier 1 capital which will be calculated by the first paragraph of the Article 4 of Regulation on Capital Conservation and Countercyclical Capital buffers to Risk Weighted Assets (%) 7.83 - Amounts below deduction thresholds - - Amounts arising from the net long positions of investments made in Total Capital items of banks and financial institutions where the Bank owns 10% or less of the issued common share capital - - Amounts arising from the net long positions of investments made in Tier 1 Capital items of banks and financial institutions where the Bank owns 10% or more of the issued common share capital - - Mortgage servicing rights - - Deferred tax assets arising from temporary differences (net of related tax liability) - - Limits related to provisions considered in Tier 2 calculation - - General provisions for standard based receivables (before tenthousandtwentyfive limitation) 1,885,493 - Up to 1.25% of total risk-weighted amount of general reserves for receivables where the standard approach used 2,136,162 - Excess amount of total provision amount to credit risk Amount of the Internal Ratings Based Approach in accordance with the Communiqué on the Calculation - - Excess amount of total provision amount to 0.6% of risk weighted receivables of credit risk Amount of the Internal Ratings Based Approach in accordance with the Communiqué on the Calculation - - Debt instruments subjected to Article 4 (to be implemented between January 1, 2018 and January 1, 2022) - - Upper limit for Additional Tier 1 Capital subjected to temprorary Article 4 - - Amounts Excess the Limits of Additional Tier 1 Capital subjected to temprorary Article 4 - - Upper limit for Additional Tier 2 Capital subjected to temprorary Article 4 - - Amounts Excess the Limits of Additional Tier 2 Capital subjected to temprorary Article 4 - - (*) Represents the amounts taken into consideration according to transition clauses. (**) According to the “Regulations on Systemically Important Banks” 4th paragraph of Article 4, the “systemically important banks buffer requirement (%)” is to be filled by the systemically important banks that are not obligated to prepare consolidated financial statements and should be reported as zero for by the other banks.