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 218 VakıfBank Annual Report 2017 Prior Period Protection bought Protection sold Nominals Single-name credit default swaps 165,000 246,050 Index credit default swaps - - Total return swaps - - Credit options - - Other credit derivatives - - Total Nominals 165,000 246,050 Fair Values 11,131 24,801 Positive fair values (asset) 11,131 - Negative fair values (liability) - 24,801 Central counterparty risks Current Period Prior Period Exposure at default (post-CRM) RWA Exposure at default (post-CRM) RWA 1 Exposure to Qualified Central Counterparties (QCCPs) (total) 410 323 2 Exposures for trades at QCCPs (excluding initial margin and default fund contributions); of which 20,494 410 16,124 323 3 (i) OTC Derivatives 20,494 410 16,124 323 4 (ii) Exchange-traded Derivatives - - - - 5 (iii) Securities financing transactions - - - - 6 (iv) Netting sets where cross-product netting has been approved - - - - 7 Segregated initial margin - - 8 Non-segregated initial margin - - - - 9 Pre-funded default fund contributions - - - - 10 Unfunded default fund contributions - - - - 11 Exposures to non-QCCPs (total) - - 12 Exposures for trades at non-QCCPs (excluding initial margin and default fund contributions); of which ) - - - - 13 (i) OTC Derivatives - - - - 14 (ii) Exchange-traded Derivatives - - - - 15 (iii) Securities financing transactions - - - - 16 (iv) Netting sets where cross-product netting has been approved - - - - 17 Segregated initial margin - - 18 Non-segregated initial margin - - - - 19 Pre-funded default fund contributions - - - - 20 Unfunded default fund contributions - - - -