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 184 VakıfBank Annual Report 2017 Exposure to currency risk 10 percent appreciation of the TL against the following currencies as at and for the year ended December 31, 2017 and 2016 would have effect on equity and profit or loss (without tax effects) by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. December 31, 2017 December 31, 2016 Profit or loss Equity (*) Profit or loss Equity (*) US Dollar 64,565 64,565 186,375 186,375 Euro (21,162) (21,162) (40,991) (40,991) Other currencies 233 233 31 31 Total, net (**) 43,636 43,636 145,415 145,415 (*) Equity effect also includes profit or loss effect of 10% devaluation of TL against related currencies. (**) Associates, subsidiaries, joint ventures, tangible and intangible assets are not included to the analysis. 10 percent appreciation of the TL against the following currencies as at and for the year ended December 31, 2017 and 2016 would have effect on equity and profit or loss (without tax effects) by the amounts shown below. December 31, 2017 December 31, 2016 Profit or loss Equity (*) Profit or loss Equity (*) US Dollar (64,565) (64,565) (186,375) (186,375) Euro 21,162 21,162 40,991 40,991 Other currencies (233) (233) (31) (31) Total, net (**) (43,636) (43,636) (145,415) (145,415) (*) Equity effect also includes profit or loss effect of 10% revaluation of TL against related currencies. (**) Associates, subsidiaries, joint ventures, tangible and intangible assets are not included to the analysis. IV. INTEREST RATE RISK Interest sensitivity of assets, liabilities and off-balance sheet items is evaluated during the weekly Assets-Liabilities Committee meetings taking into account the developments in market conditions. Bank’s interest rate risk is measured by the standard method. Measurements for standard method are carried out monthly using the maturity ladder table.