VKF_FRAE_2017

199 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.) Prior Period Retail Banking Corporate Banking Investment Banking Other Total Operations OPERATING INCOME/ EXPENSES Interest Income 4,959,598 8,079,808 3,513,759 4,461 16,557,626 Interest income from loans 4,959,598 8,079,808 1,172,511 - 14,211,917 Interest Income from reserve deposits - - 111,798 - 111,798 Interest income from securities portfolio - - 2,204,418 - 2,204,418 Interest income from banks - - 25,032 - 25,032 Interest income from money market transactions - - - - - Finance Lease Income - - - - - Other interest income - - - 4,461 4,461 Interest Expense 3,387,868 3,618,235 2,541,301 43,581 9,590,985 Interest expense on deposits 3,387,868 3,605,822 220,219 - 7,213,909 Interest expense on funds borrowed - 12,413 373,337 - 385,750 Interest expense on money market transactions - - 992,840 - 992,840 Interest expense on securities issued - - 680,296 - 680,296 Other interest expenses - - 274,609 43,581 318,190 Net Interest Income 1,571,730 4,461,573 972,458 (39,120) 6,966,641 Net Fees and Commissions Income 425,547 478,927 76,409 - 980,883 Trading Income/ Losses (Net) - - 483,813 - 483,813 Dividend Income - - 91,753 - 91,753 Other Income (*) - - - 954,031 954,031 Provision For Losses on Loans and Other Receivables 431,235 1,570,736 30,688 213,855 2,246,514 Other Expenses (**) - - - 3,835,083 3,835,083 Profit Before Taxes 1,566,042 3,369,764 1,593,745 (3,134,027) 3,395,524 Provision for taxes - - - (692,482) (692,482) Net Profit/ Loss 1,566,042 3,369,764 1,593,745 (3,826,509) 2,703,042 SEGMENT ASSETS Securities Portfolio - - 25,999,793 - 25,999,793 Derivative Financial Assets Held for Trading Purpose - - 1,610,979 - 1,610,979 Banks and Receivables From Money Markets - - 3,890,322 - 3,890,322 Investments in Associates and Subsidiaries - - 2,096,602 - 2,096,602 Loans and Receivables 41,424,553 82,471,067 23,816,755 - 147,712,375 Other Assets - - 24,223,603 7,006,231 31,229,834 TOTAL ASSETS 41,424,553 82,471,067 81,638,054 7,006,231 212,539,905 SEGMENT LIABILITIES Deposits 54,150,626 64,556,129 5,131,622 - 123,838,377 Derivative Financial Liabilities Held for Trading Purpose - - 1,143,703 - 1,143,703 Interbank Money Market Takings - - 12,895,334 - 12,895,334 Funds Borrowed - 662,429 23,531,341 - 24,193,770 Securities Issued - - 14,707,745 - 14,707,745 Other Liabilities - - 5,774,949 7,098,768 12,873,717 Provisions and Tax Liabilities - - - 3,648,548 3,648,548 Equity - - - 19,238,711 19,238,711 TOTAL LIABILITIES AND EQUITY 54,150,626 65,218,558 63,184,694 29,986,027 212,539,905 (*) TL 665,884 amount of TL 954,031 shown in other income line consists of rejecting reserves from previous periods, TL 164,709 of income from sale of Bank’s assets, TL 40,316 from communications income, TL 923 from leasing income and remaining TL 82,199 of other income. (**) TL 1,488,861 amount of TL 3,835,083 shown in other expenses line consists of personnel expenses, TL 1,560,004 of other operating expenses, TL 172,096 of depreciation expenses, TL 147,970 of dividend reserves expenses to be given to personnel, TL 138,469 of Savings Deposit Insurance Fund (SDIF) expenses, TL 130,750 of taxes and funds expenses, and the remaining TL 196,933 of other expenses.