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 244 VakıfBank Annual Report 2017 Transferable retirement and health liabilities 31 December 2017 31 December 2016 Net Present Value of Transferable Retirement Liabilities (5,495,589) (4,843,316) Net Present Value of Transferable Retirement and Health Contributions 4,317,510 3,352,762 General Administration Expenses (99,503) (86,552) Present Value of Pension and Medical Benefits Transferable to SSF (1) (1,277,583) (1,577,107) Fair Value of Plan Assets (2) 5,360,551 4,299,662 Asset Surplus over Transferable Benefits ((2)-(1)=(3)) 4,082,968 2,722,555 Actuarial assumptions used in valuation of Non Transferable Benefits based on IAS 19 are as follows: Discount Rates 31 December 2017 31 December 2016 Benefits Transferable to SSI %9,80 %9,80 Non Transferable Benefits %2,50 %2,50 Distribution of total assets of the Retirement Fund as of December 31, 2017 and December 31, 2016 is presented below: 31 December 2017 31 December 2016 Bank placements 2,290,956 2,210,265 Government Bonds and Treasury Bill, Fund and Accrual Interest Income 362,512 110,880 Tangible assets* 2,517,925 1,750,695 Other 189,158 227,822 Total 5,360,551 4,299,662 (*) The Tangible assets value indicates all the stocks’ and real estate properties’ market values, as of December, 31, 2017. Provision for currency exchange loss on foreign currency indexed loans Current Period Prior Period Provision for currency exchange gain/loss on foreign currency indexed loans 10,253 297 The Bank has recorded provision amounting to TL 10,253 (December 31, 2016: TL 297) for foreign exchange losses on principal amounts of foreign currency indexed loans and reflected the related foreign exchange loss amount in the financial statements by offsetting from related loans. Provisions for non-cash loans that are not indemnified and not converted into cash As of December 31, 2017, Bank has recorded TL 75,942 (December 31, 2016: TL 59,816) as provisions for non-cash loans that are not indemnified or converted into cash.