VKF_FRAE_2017

PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 212 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.) Exposures by asset classes and risk weights Curernt Period Asset classes/ Risk weight 0% 10% 20% 35% Secured by real estate 50% 75% 100% 150% 200% 250% Other risk weights Total risk Amount (After CCF and CRM) 1 Exposures to central governments or central banks 76,586,734 - 90 - 10,093,503 - - - - - - 86,680,327 2 Exposures to regional governments or local authorities 9,934 - 110,209 - 6,789,397 - - - - - - 6,909,540 3 Exposures to public sector entities 3,704 - 12,118 - - - 422,476 - - - - 438,298 4 Exposures to multilateral development banks 1,583 - - - - - - - - - - 1,583 5 Exposures to international organizations - - - - - - - - - - - - 6 Exposures to institutions 738 - 1,901,162 - 5,354,785 - 280,483 - - - - 7,537,168 7 Exposures to corporates 368,031 - 225,296 - 1,612,292 - 84,019,623 - - - - 86,225,242 8 Retail exposures 238,496 - 94,654 - - 49,690,469 - - - - - 50,023,619 9 Exposures secured by residential property - - - 23,271,806 - - - - - - - 23,271,806 10 Exposures secured by commercial real estate - - - - 19,336,772 - 5,781,432 - - - - 25,118,204 11 Past-due loans - - - - - - 1,039,387 - - - - 1,039,387 12 Higher-risk categories by the Agency Board - - - - - - - 220,667 - - - 220,667 13 Exposures in the form of covered bonds - - - - - - - - - - - - 14 Exposures to institutions and corporates with a short-term credit assessment - - - - - - - - - - - - 15 Exposures in the form of units or shares in collective investment undertakings - - - - - - 263 - - - - 263 16 Investments in equities - - - - - - 2,606,386 - - - - 2,606,386 17 Other assets 1,987,490 - 380,234 - - - 6,027,943 - - - - 8,395,667 18 Total 79,196,710 - 2,723,763 23,271,806 43,186,749 49,690,469 100,177,993 220,667 - - - 298,468,157 Prior Period Asset classes/ Risk weight 0% 10% 20% 35% Secured by real estate 50% 75% 100% 150% 200% 250% Other risk weights Total risk Amount (After CCF and CRM) 1 Exposures to central governments or central banks 26,372,164 - - - 27,026,646 - - - - - - 53,398,810 2 Exposures to regional governments or local authorities 10,108 - 86,015 - 4,657,020 - - - - - - 4,753,143 3 Exposures to public sector entities 4,060 - 660 - - - 1,288,439 - - - - 1,293,159 4 Exposures to multilateral development banks 5 - - - - - - - - - - 5 5 Exposures to international organizations - - - - - - - - - - - - 6 Exposures to institutions 1,793 - 1,195,014 - 3,099,334 - 26,251 - - - - 4,322,392 7 Exposures to corporates 399,141 - 394,561 - 2,000,084 - 66,779,712 - - - - 69,573,498 8 Retail exposures - - - - - 45,686,864 - - - - - 45,686,864 9 Exposures secured by residential property - - - 21,214,639 - - - - - - - 21,214,639 10 Exposures secured by commercial real estate - - - - 17,293,665 - 5,438,457 - - - - 22,732,122 11 Past-due loans - - - - - - 1,093,383 - - - - 1,093,383 12 Higher-risk categories by the Agency Board - - - - - - - 205,588 - 83,109 - 288,697 13 Exposures in the form of covered bonds - - - - - - - - - - - - 14 Exposures to institutions and corporates with a short-term credit assessment - - - - - - - - - - - - 15 Exposures in the form of units or shares in collective investment undertakings - - - - - - - - - - - - 16 Investments in equities - - - - - - 2,124,212 - - - - 2,124,212 17 Other assets 1,797,559 - 242,229 - - - 4,109,477 - - - - 6,149,265 18 Total 28,584,830 - 1,918,479 21,214,639 54,076,749 45,686,864 80,859,931 205,588 - 83,109 - 232,630,189