VKF_FRAE_2017

PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 176 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.) Risk profile according to sectors and counterparties (*) Prior Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 TL FC Total Agricultural 2,235 54 207,563 - - - 1,140,397 628,586 667,275 - - - - - - - - 1,874,122 771,988 2,646,110 Farming and raising livestock 1,762 54 207,563 - - - 839,819 570,802 628,684 - - - - - - - - 1,745,073 503,611 2,248,684 Forestry 471 - - - - - 258,641 29,458 19,454 - - - - - - - - 80,550 227,474 308,024 Fishing 2 - - - - - 41,937 28,326 19,137 - - - - - - - - 48,499 40,903 89,402 Manufacturing 5,917 570 171,838 - - - 30,027,301 4,011,585 5,229,920 - - - - - - - - 13,824,770 25,622,361 39,447,131 Mining 707 - 6,712 - - - 1,335,027 156,918 211,494 - - - - - - - - 487,832 1,223,026 1,710,858 Production 5,210 23 49,004 - - - 19,839,469 3,721,968 4,890,928 - - - - - - - - 11,425,080 17,081,522 28,506,602 Electric, Gas, Water - 547 116,122 - - - 8,852,805 132,699 127,498 - - - - - - - - 1,911,858 7,317,813 9,229,671 Construction 434 105 73,780 - - - 10,284,903 2,626,315 5,891,522 - - - - - - - - 10,986,335 7,890,724 18,877,059 Services 34,861,036 4,624,122 700,689 - - 15,605,640 22,800,714 12,764,923 15,372,178 - 205,588 - - - - 27,610 - 64,892,821 42,069,679 106,962,500 Wholesale and retail trade 184,370 583 43 - - - 8,480,102 7,441,861 8,473,191 - - - - - - - - 18,799,413 5,780,737 24,580,150 Hotel, Food and Beverage Services 2,282 17 64 - - - 2,364,966 498,907 3,130,880 - - - - - - - - 1,372,446 4,624,670 5,997,116 Transportation and Telecommunication 283 7,555 365,545 - - - 7,648,521 4,174,378 1,476,312 - - - - - - - - 6,056,650 7,615,944 13,672,594 Financial Institutions 34,446,465 7 1,010 - - 15,605,640 3,098,274 50,347 1,086,383 - 205,588 - - - - 27,610 - 31,936,658 22,584,666 54,521,324 Real Estate and renting services - - 4 - - - 275,182 133,166 489,797 - - - - - - - - 398,126 500,023 898,149 Self-employment services 480 1,254 16,839 - - - 424 68 - - - - - - - - - 19,065 - 19,065 Education services 51,275 32 1,026 - - - 365,576 100,796 292,437 - - - - - - - - 774,076 37,066 811,142 Health and social services 175,881 4,614,674 316,158 - - - 567,669 365,400 423,178 - - - - - - - - 5,536,387 926,573 6,462,960 Other 22,415,063 129,547 157,114 5 - 473 5,533,834 25,693,314 16,785,865 1,093,383 83,109 - - - - 2,096,602 6,149,265 55,493,437 24,644,137 80,137,574 Total 57,284,685 4,754,398 1,310,984 5 - 15,606,113 69,787,149 45,724,723 43,946,760 1,093,383 288,697 - - - - 2,124,212 6,149,265 147,071,485 100,998,889 248,070,374 (*) Risk amounts are given before credit risk mitigation, after multiplied by credit risk conversion ratio. 1- Claims on sovereigns and Central Banks 2- Claims on regional governments or local authorities 3- Claims on administrative bodies and other non-commercial undertakings 4- Claims on multilateral development banks 5- Claims on international organizations 6- Claims on banks and intermediary institutions 7- Claims on corporates 8- Claims included in the regulatory retail portfolios 9- Claims secured by residential property 10- Past due loans 11- Higher risk categories decided by the Board 12- Secured by mortgages 13- Securitization positions 14- Short-term claims and short term corporate claims on banks and intermediary institutions 15- Undertakings for collective investments in mutual funds 16- Stock Investments 17- Other receivables