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 234 VakıfBank Annual Report 2017 Vakıf Yatırım Menkul Değerler AŞ, a subsidiary of the Bank, calculates capital adequacy in accordance with Serial:V, No: 34 numbered “Communiqué on Capital and Capital Adequacy of Intermediary Firms” of CMB every six month. Güneş Sigorta AŞ and Vakıf Emeklilik ve Hayat AŞ that operate in insurance business calculate capital adequacy in accordance with “Communiqué on Capital Adequacy Measurement and Assessment for Insurance, Reinsurance and Pension Firms” published by Republic of Turkey Undersecretariat of Treasury every six month. According to the calculations at December 31, 2017, there is no capital requirement for the subsidiaries mentioned. Information on investments in subsidiaries Subsidiary Address (City / Country) Bank’s Share - If Different, Voting Rights (%) Bank’s Risk Group Share (%) 1 Güneş Sigorta AŞ (*) İstanbul/Turkey 48.02 48.02 2 Vakıf Emeklilik ve Hayat AŞ (*) İstanbul/ Turkey 53.90 79.67 3 Vakıf Faktoring AŞ (*) İstanbul/ Turkey 78.39 88.68 4 Vakıf Finansal Kiralama AŞ (*) İstanbul/ Turkey 58.71 66.23 5 Vakıf Yatırım Menkul Değerler AŞ (*) İstanbul/ Turkey 99.00 99.48 6 Vakıfbank International AG (*) Vienna/Austria 90.00 90.00 7 Vakıf Portföy Yönetimi AŞ (*) İstanbul/ Turkey 100.00 100.00 8 Vakıf Menkul Kıymet Yatırım Ortaklığı AŞ (*) İstanbul/ Turkey 22.89 34.55 9 Vakıf Gayrimenkul Yatırım Ortaklığı AŞ (*) İstanbul/ Turkey 38.70 40.86 10 Vakıf Enerji ve Madencilik AŞ (**) Ankara/ Turkey 65.50 85.52 11 Taksim Otelcilik AŞ (*) İstanbul/ Turkey 51.00 51.69 12 Vakıf Pazarlama Sanayi ve Ticaret AŞ (***) İstanbul/ Turkey 69.33 76.18 13 Vakıf Gayrimenkul Değerleme AŞ (*) Ankara/ Turkey 54.29 58.73 Total Assets EquityTangible Assets Interest Income Income on Securities Portfolio Current Period Profit/(Loss) Prior Period Profit/(Loss) Company’s Fair Value 1 1,857,209 536,171 582,483 59,978 669 15,030 (71,174) 449,781 2 6,618,429 308,951 127,457 36,713 196 73,260 38,512 1,149,195 3 1,528,034 139,869 328 128,206 - 18,023 12,943 157,611 4 1,868,750 192,531 21,786 100,798 - 22,421 15,894 232,724 5 422,141 130,451 2,029 26,480 18 14,350 5,752 186,870 6 4,005,275 579,208 1,988 61,159 23,491 16,637 17,711 402,497 7 27,486 26,310 444 2,328 32 5,856 4,937 81,031 8 18,747 17,277 28 264 1,485 (171) (196) 27,963 9 1,067,326 873,533 638,872 10,869 - 8,495 10,768 568,147 10 25,851 12,062 1,043 530 - 404 280 14,494 11 371,463 356,839 221,749 8,132 - 5,653 504 403,062 12 59,791 49,796 1,710 3,948 - 6,422 3,587 49,458 13 31,550 25,967 280 2,811 - (178) 1,269 26,479 (*) The financial statement information provided for these subsidiaries is from the financial statements dated September 30, 2017. (**) The financial statement information provided for these subsidiaries is from the financial statements dated June 30, 2017. (***) The financial statement information provided for these subsidiaries is taken from the financial statements as of December 31, 2016.