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 194 VakıfBank Annual Report 2017 VII. LEVERAGE RATIO Information on Issues that Cause Differences between Current Period and Previous Period Leverage Ratios The Bank’s unconsolidated leverage rate which is calculated due to “Regulation on Banks’ Measurement and Evaluation of Leverage Level” actualised as 6.80%. Increase in balance sheet assets and Tier I Capital transactions resulted in change in comparison with previous period (December 31, 2016: 7.13%) leverage rate. The Regulation adjudicated minimum leverage rate as 3%. Leverage ratio common disclosure template On-balance sheet exposures Current Period (*) Prior Period (*) 1 On-balance sheet items (excluding derivatives and SFTs; including collateral) 261,224,004 209,429,643 2 Assets deducted in determining Basel III Tier 1 capital (386,413) (312,844) 3 Total on-balance sheet exposures (excluding derivatives and SFTs) 260,837,591 209,116,799 Derivative exposures 4 Replacement cost 2,314,960 1,388,332 5 Add-on amount 620,408 647,688 6 Total derivative exposures 2,935,368 2,036,020 Securities financing transaction exposures 7 Gross SFT assets (with no recognition of accounting netting) 657,737 653,843 8 Agent transaction exposures - - 9 Total securities financing transaction exposures 657,737 653,843 Other off-balance sheet exposures 10 Off-balance sheet exposures with gross nominal amount 60,490,879 47,738,380 11 Adjustment amount off-balance sheet exposures with credit conversion factor 3,818,352 2,804,179 12 Total off-balance sheet exposures 64,309,231 50,542,559 Capital and total exposures 13 Tier 1 capital 22,349,984 18,677,993 14 Total exposures 328,739,927 262,349,221 Leverage ratio 15 Leverage ratio 6.80 7.13 (*) Calculated by using three month average of balances in Leverage Rate Notification table.