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 166 VakıfBank Annual Report 2017 Prior Period December 31, 2016 Amount as per the regulation before 1/1/2014 (*) Premiums that are not included in Common Equity Tier 1 capital - Bank's borrowing instruments and related issuance premium - Bank's borrowing instruments and related issuance premium (Temporary Article 4) - Additional Tier 1 Capital before deductions - Deductions from Additional Tier 1 Capital - Bank's a direct or indirect investment in Tier 1 Capital - - Investments of Bank to Banks that invest in Bank's additional equity and components of equity issued by financial institutions with compatible with Article 7 - - Total of Net Long Positions of the Investments in Equity Items of Unconsolidated Banks and Financial Institutions where the Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% - - Unconsolidated Banks and Financial Institutions where the Bank Owns more than 10% of the Issued Share Capital - - Other Items Determined by BRSA - - Transition from the Core Capital to Continue to deduce Components - - Goodwill and other intangible assets and related deferred tax liabilities which will not deducted from Common Eguity Tier 1 capital for the purposes of the first sub-paragraph of the Provisional Article 2 of the Regulation on Banks’ Own Funds (-) 77,546 - Net deferred tax asset/liability which is not deducted from Common Eguity Tier 1 capital for the purposes of the sub-paragraph of the Provisional Article 2 of the Regulation on Banks’ Own Funds (-) - - The amount to be deducted from Additional Tier 1 Capital (-) - - Total Deductions from Additional Tier 1 Capital - Total Additional Tier 1 Capital - Total Tier 1 Capital (Tier 1 Capital=Common Equity+Additional Tier 1 Capital) 18,886,553 TIER 2 CAPITAL - Bank's borrowing instruments and related issuance premium 2,729,287 Bank's borrowing instruments and related issuance premium (Temporary Article 4) 977,288 Provisions (Article 8 of the Regulation on the Equity of Banks) 1,905,134 Tier 2 Capital Before Deductions 4,634,421 Deductions From Tier 2 Capital - Bank's direct or indirect investment in Tier 2 Capital (-) - - Investments of Bank to Banks that invest on Bank's Tier 2 and components of equity issued by Financial Institutions with the conditions declared in Article 8 - - Total of Net Long Positions of the Investments in Equity Items of Unconsolidated Banks and Financial Institutions where the Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% threshold of Common Equity Tier 1 Capital (-) - - The Total of Net Long Position of the Direct or Indirect Investments in Additional Core Capital and Tier 2 Capital of Unconsolidated Banks and Financial Institutions where the Bank Owns 10% or more of the Issued Share Capital Exceeding the 10% Threshold of Tier 1 Capital - - Other Items Determined by BRSA (-) - - Total Deductions From Tier 2 Capital - Tier 2 Capital 4,634,421 Total Capital (The sum of Tier 1 Capital and Tier 2 Capital) 23,520,974 The sum of Tier 1 Capital and Tier 2 Capital (Total Capital) - Loan granted to Customer against the Articles 50 and 51 of the Banking Law - Net Book Values of Immovables Exceeding 50% of the Equity and of Assets Acquired against Overdue Receivables and Held for Sale as per the Article 57 of the Banking Law but Retained More Than Five Years (-) 112,142 Other items to be defined by the BRSA (-) 1,166 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 - -