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 228 VakıfBank Annual Report 2017 Information on non-performing loans and other receivables in foreign currencies Group III Group IV Group V Loans and receivables with limited collectability Loans and receivables with doubtful collectability Uncollectible loans and receivables Current Period Balance at the end of the period 42,517 6,850 366,534 Specific provision (-) 8,503 3,425 366,534 Net balance on balance sheet 34,014 3,425 - Prior Period Balance at the end of the period 57,993 12,646 223,454 Specific provision (-) 50,675 6,323 223,454 Net balance on balance sheet 7,318 6,323 - Non-performing foreign currency denominated loans are followed in TL accounts. Loan customer concentration of gross and net amounts of non-performing loans Group III Group IV Group V Loans and receivables with limited collectability Loans and receivables with doubtful collectability Uncollectible loans and receivables Current Period (Net) 602,920 436,467 - Consumer and Commercial Loans (Gross) 753,526 854,437 5,930,619 Specific Provision (-) 150,705 418,744 5,930,619 Consumer and Commercial Loans (Net) 602,821 435,693 - Banks (Gross) - - 1,551 Specific Provision (-) - - 1,551 Banks (Net) - - - Other Loans and Receivables (Gross) 124 1,548 96,401 Specific Provision (-) 25 774 96,401 Other Loans and Receivables (Net) 99 774 - Prior Period (Net) 542,613 550,770 - Consumer and Commercial Loans (Gross) 926,977 1,092,516 4,292,536 Specific Provision (-) 384,470 546,496 4,292,536 Consumer and Commercial Loans (Net) 542,507 546,020 - Banks (Gross) - - 1,551 Specific Provision (-) - - 1,551 Banks (Net) - - - Other Loans and Receivables (Gross) 133 9,500 90,290 Specific Provision (-) 27 4,750 90,290 Other Loans and Receivables (Net) 106 4,750 -