VKF_FRAE_2017

169 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 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.) If convertible, fully or partially Nil If convertible, conversion rate Nil If convertible, mandatory or optional conversion Nil If convertible, specify instrument type convertible into Nil If convertible, specify issuer of instrument it converts into Nil If write-down, write-down trigger(s) XS0849728190/ US90015NAB91 Not available. XS1175854923/ US90015WAC73 available Revoking the business activity of Bank according to 71 clause of 5411 numbered Banking Law or liquidation proceedings to Savings Deposit Insurance Fund are the triggering events XS1551747733/ US90015WAE30 available Revoking the business activity of Bank according to 71 clause of 5411 numbered Banking Law or liquidation proceedings to Savings Deposit Insurance Fund are the triggering events TRSVKFB92719 available Revoking the business activity of Bank according to 71 clause of 5411 numbered Banking Law or liquidation proceedings to Savings Deposit Insurance Fund are the triggering events If write-down, full or partial XS0849728190/ US90015NAB91 not available XS1175854923/ US90015WAC73 has full or partial write down feature. XS1551747733/ US90015WAE30 has full or partial write down feature. TRSVKFB92719 has full or partial write down feature. If write-down, permanent or temporary XS0849728190/ US90015NAB91 not available XS1175854923/ US90015WAC73 has permanent write down feature. XS1551747733/ US90015WAE30 has permanent write down feature. TRSVKFB92719 has permanent write down feature. If temporary write-down, description of write-up mechanism XS0849728190/ US90015NAB91 not available XS1175854923/ US90015WAC73 has no write-up mechanism. XS1551747733/ US90015WAE30 has no write-up mechanism. TRSVKFB92719 has no write-up mechanism. Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) Before debt instruments included in Tier II Capital after deposit and other receivables Whether conditions which stands in article of 7 and 8 of Banks’ shareholder equity law are possessed or not Possess Article 8 According to article 7 and 8 of Banks' shareholders equity law that are not possessed Not Possess Article 7 Reconciliation of capital items to balance sheet: December 31, 2017 31.12.2016 Shareholders’ equity 23,257,818 19,238,711 Leasehold improvements on operational leases (182,977) (158,292) Goodwill and intangible assets (168,776) (116,320) General provision (1.25% of the amount that subject to credit risk) 1,885,493 1,905,134 Subordinated debt 4,083,838 2,729,287 Deductions from shareholders’ equity (43,549) (190,854) Capital 28,831,847 23,407,666