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 198 VakıfBank Annual Report 2017 Major financial statement items according to business lines: Current Period Retail Banking Corporate Banking Investment Banking Other Total Operations OPERATING INCOME/ EXPENSES Interest Income 5,627,056 10,965,512 4,848,526 3,000 21,444,094 Interest income from loans 5,627,056 10,965,512 1,670,270 - 18,262,838 Interest income from reserve deposits - - 221,541 - 221,541 Interest income from securities portfolio - - 2,868,891 - 2,868,891 Interest income from banks - - 52,638 - 52,638 Interest income from money market transactions - - 35,186 - 35,186 Finance Lease Income - - - - - Other interest income - - - 3,000 3,000 Interest Expense 4,337,115 4,634,234 3,787,824 63,495 12,822,668 Interest expense on deposits 4,337,115 4,619,108 248,858 - 9,205,081 Interest expense on funds borrowed - 15,126 656,766 - 671,892 Interest expense on money market transactions - - 1,523,311 - 1,523,311 Interest expense on securities issued - - 1,020,139 - 1,020,139 Other interest expenses - - 338,750 63,495 402,245 Net Interest Income 1,289,941 6,331,278 1,060,702 (60,495) 8,621,426 Net Fees and Commissions Income 497,841 748,403 84,421 - 1,330,665 Trading Income/ Losses (Net) - - 164,212 - 164,212 Dividend Income - - 93,561 - 93,561 Other Income (*) - - - 1,673,529 1,673,529 Provision For Losses on Loans and Other Receivables 483,166 1,773,358 30,802 500,207 2,787,533 Other Expenses (**) - - - 4,420,728 4,420,728 Profit Before Taxes 1,304,616 5,306,323 1,372,094 (3,307,901) 4,675,132 Provision for taxes - - - (951,749) (951,749) Net Profit/ Loss 1,304,616 5,306,323 1,372,094 (4,259,650) 3,723,383 SEGMENT ASSETS Securities Portfolio - - 30,316,048 - 30,316,048 Derivative Financial Assets Held for Trading Purpose - - 1,936,525 - 1,936,525 Banks and Receivables From Money Markets - - 13,539,930 - 13,539,930 Investments in Associates and Subsidiaries - - 2,563,016 - 2,563,016 Loans and Receivables 48,222,428 106,467,197 29,281,990 - 183,971,615 Other Assets - - 29,037,351 9,207,225 38,244,576 TOTAL ASSETS 48,222,428 106,467,197 106,674,860 9,207,225 270,571,710 SEGMENT LIABILITIES Deposits 65,323,825 80,175,194 9,778,103 - 155,277,122 Derivative Financial Liabilities Held for Trading Purpose - - 1,184,530 - 1,184,530 Interbank Money Market Takings - - 22,270,837 - 22,270,837 Funds Borrowed - 571,707 27,735,914 - 28,307,621 Securities Issued - - 19,485,098 - 19,485,098 Other Liabilities - - 6,701,893 9,923,176 16,625,069 Provisions and Tax Liabilities - - - 4,163,615 4,163,615 Equity - - - 23,257,818 23,257,818 TOTAL LIABILITIES AND EQUITY 65,323,825 80,746,901 87,156,375 37,344,609 270,571,710 (*) TL 936,786 amount of TL 1,673,529 shown in other income line consists of rejecting reserves from previous periods, TL 148,977 of income from sale of Bank’s assets, TL 43,602 from communications income and remaining, TL 1,018 from leasing income, TL 543,146 of other income. (**) TL 1,768,758 amount of TL 4,420,728 shown in other expenses line consists of personnel expenses, TL 1,844,656 of other operating expenses, TL 161,271 of depreciation expenses, TL 168,500 of dividend reserves expenses to be given to personnel, TL 168,783 of Savings Deposit Insurance Fund (SDIF) expenses, TL 148,817 of taxes and funds expenses, and the remaining TL 159,943 of other expenses.