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 208 VakıfBank Annual Report 2017 Prior Period Cash Loans Impaired Loans Provisions Agricultural 1,878,400 116,924 99,522 Farming and raising livestock 1,509,662 106,265 90,495 Forestry 286,476 7,848 6,997 Fishing 82,262 2,811 2,030 Manufacturing 26,254,073 1,112,305 983,726 Mining and Quarrying 1,004,707 41,038 36,879 Production 19,649,526 1,060,170 937,638 Electricity, Gas, Water 5,599,840 11,097 9,209 Construction 16,846,159 599,481 526,093 Services 44,711,065 1,739,620 1,452,901 Wholesale and Retail Trade 18,617,008 1,229,957 1,014,712 Accommodation and Dining 5,361,779 81,173 62,466 Transportation and Telecommunication 10,268,765 229,301 195,486 Financial Institutions 2,959,544 5,635 4,791 Real Estate and Rental Services 2,558,545 9,400 7,794 Professional Services 3,403,072 112,056 103,965 Educational Services 691,346 16,788 13,270 Health and Social Services 851,006 55,310 50,417 Other 56,929,295 2,845,173 2,257,878 Total 146,618,992 6,413,503 5,320,120 Breakdown of loan receivables by outstanding maturity Current Period Up to 1 Month 1 – 3 Months 3 – 12 Months 1 – 5 Years 5 Years and Over Total Loans 15,014,654 5,187,532 32,686,698 84,252,856 45,790,488 182,932,228 Prior Period Up to 1 Month 1 – 3 Months 3 – 12 Months 1 – 5 Years 5 Years and Over Total Loans 12,575,901 5,268,530 30,613,044 62,734,890 35,426,627 146,618,992 Amounts of provision allocated receivables (According to the definition used by the Bank in accounting) based on geographical area and sector and amounts deducted from the assets with the related provisions Breakdown by of provision allocated receivables by geographical area Current Period Geographical area Loan Receivables (Risks) Provision Domestic 7,605,376 6,591,479 European Union Countries - - OECD Countries (*) - - Off-Shore Banking Regions - - USA, Canada 32,130 6,643 Other 700 697 Total 7,638,206 6,598,819 (*) OECD Countries other than EU countries, USA and Canada.