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 256 VakıfBank Annual Report 2017 7. Information on other operating expenses Current Period Prior Period Personnel Costs 1,768,758 1,488,861 Reserve for Employee Termination Benefits 44,031 27,488 Deficit Provision for Pension Funds - - Impairment Losses on Tangible Assets - - Amortization Expenses on Tangible Assets 134,491 130,200 Impairment Losses on Intangible Assets - - Amortization Expenses on Intangible Assets 26,780 22,173 Impairment Losses on Assets to be Disposed - 5,278 Depreciation Expenses on Assets to be Disposed - 19,723 Impairment Losses on Assets Held for Sale - - Other Operating Expenses 1,844,656 1,560,004 Operational lease expenses 247,667 224,714 Repair and maintenance expenses 62,247 47,576 Advertisement expenses 108,801 78,123 Other expenses 1,425,941 1,209,591 Loss on sale of assets 1,834 3,351 Other (*) 600,178 578,005 Total 4,420,728 3,835,083 (*) Other operating expenses amounting to TL 600,178 (December 31, 2016: TL 578,005) is comprised of provision expenses for dividends to the personnel amounting to TL 168,500 (December 31, 2016: TL 147,970), tax, fees and funds expenses amounting to TL 148,817 (December 31, 2016: TL 130,750), “Saving Deposits Insurance Fund” expenses amounting to TL 168,783 (December 31, 2016: TL 138,469) and other expenses amounting to TL 114,078 (December 31, 2016: TL 160,816).  8. Information on income/loss from discontinued and continuing operations The Bank has no discontinued operations. Information and detailed tables on profit before tax from continuing operations are presented in disclosures 1-7 in this section. 9. Information on tax provision from discontinued and continuing operations The Bank has no discontinued operations. Information on provision for taxes on income from continuing operations is presented in disclosure 11 in this section. 10. Information on net profit/loss from discontinued and continuing operations The Bank has no discontinued operations. Information on net profit/loss from continuing operations is presented in disclosures 1-13 in this section. 11. Provision for taxes Current period taxation benefit or charge and deferred tax benefit or charge In the current period, the Bank has recorded a tax charge of TL 792,677 (December 31, 2016: TL 712,424) from the net taxable profit calculated in accordance the laws and regulations in effect. Deferred tax benefit of the Bank is detailed in the table below.