VKF_FRAE_2017

257 VakıfBank Annual Report 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.) Deferred tax charge arising from temporary differences, tax losses and unused tax credits Sources of deferred tax benefit/charge Current Period Prior Period Arising from Origination / (Reversal) of Deductible Temporary Differences (47,016) 28,861 Arising from (Origination)/ Reversal of Taxable Temporary Differences (112,056) (8,919) Arising from Origination / (Reversal) of Tax Losses - - Arising from Tax Rate Change - - Total (159,072) 19,942 The table of the tax provision reconciliation for the years December 31, 2017 and December 31, 2016 is as below. Current Period Prior Period Profit before tax 4,675,132 3,395,524 Additions 1,578,221 1,090,863 Reductions (1,479,835) (172,535) Other (951,750) (694,457) Basis 3,821,768 3,619,395 Corporate tax rate 20% 20% Tax calculated 764,354 723,879 Other corrections 187,395 (31,397) Tax expense 951,749 692,482 12. Information on net profit and loss The nature and amount of certain income and expense items from ordinary operations is disclosed if the disclosure for nature, amount and repetition rate of such items is required for the complete understanding of the Bank’s performance for the period The Bank has earned TL 21,444,094 interest income, TL 1,330,665 net fees and commissions income and incurred TL 12,822,668 interest expenses, from ordinary banking transactions (December 31, 2016: TL 16,557,626 interest income, TL 9,590,985 interest expenses, TL 980,883 net fees and commissions income). Any changes in estimations that might have a material effect on current and subsequent period results None. 13. Information related to the 20% of the sub-accounts belonging to components of other items in the statement of income exceeding 10% of the group total Banks’ other commissions income mainly consists of credit card fee and commissions, insurance commissions and transfer commissions. Banks’ other commissions expense mainly consists of credit card fee and commissions and commissions given for foreign banks credits.