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 196 VakıfBank Annual Report 2017 The classification of fair value measurements of financial assets and liabilities measured at fair value is as follows: December 31, 2017 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit/loss: Financial assets held for trading purpose: 263 1,936,525 - 1,936,788 Derivative financial assets held for trading purpose - 1,936,525 - 1,936,525 Investment fund participation certificates 263 - - 263 Available-for-sale financial assets 10,534,324 3,015,375 15 (**) 13,549,714 Debt securities 10,534,324 2,972,020 - 13,506,344 Equity securities - 43,355 15 43,370 Investments in associates and subsidiaries 871,231 - 1,634,967 (*) 2,506,198 Total Financial Assets 11,405,818 4,951,900 1,634,982 17,992,700 Financial liabilities at fair value through profit/loss: Derivative financial liabilities held for trading purpose - (1,184,530) - (1,184,530) Total Financial Liabilities - (1,184,530) - (1,184,530) (*) This amount consist of fair value of the affiliates and subsidiaries determined by independent valuation companies. (**) TL 15, which is classified under financial assets available-for-sale and which is in the third level is composed of securities issued share in capital. December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit/loss: Financial assets held for trading purpose: 201 1,610,979 - 1,611,180 Derivative financial assets held for trading purpose - 1,610,979 - 1,610,979 Investment fund participation certificates 201 - - 201 Available-for-sale financial assets 15,661,669 2,157,373 15 (**) 17,819,057 Debt securities 15,661,669 2,129,778 - 17,791,447 Equity securities - 27,595 15 27,610 Investments in associates and subsidiaries 652,998 - 1,386,964 (*) 2,039,962 Total Financial Assets 16,314,868 3,768,352 1,386,979 21,470,199 Financial liabilities at fair value through profit/loss: Derivative financial liabilities held for trading purpose - (1,143,703) - (1,143,703) Total Financial Liabilities - (1,143,703) - (1,143,703) (*) This amount consist of fair value of the affiliates and subsidiaries determined by independent valuation companies (**) TL 15, which is classified under financial assets available-for-sale and which is in the third level is composed of securities issued share in capital. The reconciliation from the beginning balances to the ending balances for fair value measurements in Level 3 of the fair value hierarchy as at and for the year ended December 31, 2017 is as follows: Level 3 Current Period Level 3 Prior Period Balance at the beginning of the year 1,386,979 1,352,854 Total gains or losses for the year recognized in profit or loss - - Total gains or losses for the year recognized under equity 248,003 34,125 Balance at the end of the year 1,634,982 1,386,979