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 172 VakıfBank Annual Report 2017 The general provision for credit risk amounts to TL 1,885,493 (December 31, 2016: TL 2,167,443). Risk Classifications: Current Period Risk Amount (*) Average Risk Amount (**) Claims on sovereigns and Central Banks 93,274,872 74,840,199 Claims on regional governments or local authorities 6,911,090 5,774,930 Claims on administrative bodies and other non-commercial undertakings 438,782 1,100,510 Claims on multilateral development banks 1,583 766 Claims on international organizations - - Claims on banks and intermediary institutions 15,512,752 12,469,312 Claims on corporate 86,475,062 78,889,723 Claims included in the regulatory retail portfolios 50,027,447 47,829,523 Claims secured by residential property 48,390,010 46,101,812 Past due loans 1,039,387 1,076,847 Higher risk categories decided by the Agency 220,667 161,770 Marketable securities secured by mortgages - - Securitization exposures - - Short-term claims and short-term corporate claims on banks and intermediary institutions - - Undertakings for collective investments in mutual funds 263 168 Stock Investments 2,606,386 2,358,540 Other claims 8,395,667 6,816,384 (*) Before reducing the credit risk, the rate of the post credit conversion is given. (**) Average risk amount is calculated based on the arithmetic average of the monthly risk amounts after conversion for January-December 2017 period. Risk Classifications: Prior Period Risk Amount (*) Average Risk Amount (**) Claims on sovereigns and Central Banks 57,284,685 61,840,339 Claims on regional governments or local authorities 4,754,398 4,084,408 Claims on administrative bodies and other non-commercial undertakings 1,310,984 1,482,636 Claims on multilateral development banks 5 128 Claims on international organizations - - Claims on banks and intermediary institutions 15,606,113 12,947,340 Claims on corporate 69,787,149 64,539,017 Claims included in the regulatory retail portfolios 45,724,723 40,231,116 Claims secured by residential property 43,946,760 39,721,096 Past due loans 1,093,383 972,687 Higher risk categories decided by the Agency 288,697 2,027,588 Marketable securities secured by mortgages - - Securitization exposures - - Short-term claims and short-term corporate claims on banks and intermediary institutions - - Undertakings for collective investments in mutual funds - 5 Stock Investments 2,124,212 1,481,117 Other claims 6,149,265 6,090,464 (*) Before reducing the credit risk, the rate of the post credit conversion is given. (**) Average risk amount is calculated based on the arithmetic average of the monthly risk amounts after conversion for January-December 2016 period.