VKF_FRAE_2017

171 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.) Indemnified non-cash loans are regarded as the same risk weight with the loans that are pastdue and unpaid. Banking operations and lending activities carried in foreign countries are not exposed to material credit risks, due to related countries’ financial conditions, customers and their operations. The Bank classifies its past due and impaired receivables as shown below in accordance with the “Regulation on Procedures and Principles for Determination of Qualifications of Loans and Other Receivables and Provisions to be Set Aside”. • for which recovery of principal and interest or both delays from their terms or due dates are more than ninety days but not more than one hundred eighty days are classified as “Group Three- Loans and Other Receivables With Limited Recovery”, • for which recovery of principal and interest or both delays from their terms or due dates are more than one hundred and eighty days but not more one year are classified as “Group Four- Loans and Other Receivables With Suspicious Recovery”, • for which recovery of principal and interest or both delays from their terms or due dates are more than one year are classified as “Group Five - Loans and Other Receivables Having the Nature of Loss”, Regardless of the guarantees and pledges received, the Bank provides 20% provision for the Loans and Other Receivables classified in Group Three, by September 30, 2015, 50% provision for the Loans and Other Receivables classified in Group Four and 100% in Group Five. The provision amount is recognized in profit and loss statement of the period. The Bank’s largest 100 cash loan customers compose 26.52% of the total cash loan portfolio (December 31, 2016: 27.22%). The Bank’s largest 100 non-cash loan customers compose 53.48% of the total non-cash loan portfolio (December 31, 2016: 56.13%). The Bank’s largest 100 cash loan customers compose 17.93% of total assets of the Bank and the Bank’s largest 100 non-cash loan customers compose 16.99% of total off-balance sheet items (December 31, 2016: 18.78% and 15.50%). The Bank’s largest 200 cash loan customers compose 32.81% of the total cash loan portfolio (December 31, 2016: 33.48%). The Bank’s largest 200 non-cash loan customers compose 65.73% of the total non-cash loan portfolio (December 31, 2016: 68.50%). The Bank’s largest 200 cash loan customers compose 22.18% of total assets of the Bank and the Bank’s largest 200 non-cash loan customers compose 20.88% of total off-balance sheet items (December 31, 2016: 23.10% and 18.92%).