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 260 VakıfBank Annual Report 2017 Information on cash and cash equivalents at the end of the year Current Period December 31, 2017 Prior Period December 31, 2016 Cash on hand 1,979,531 1,785,996 Cash in TL 1,395,342 1,281,047 Cash in foreign currency 584,189 504,949 Cash equivalents 18,967,532 9,322,773 CBT - Unrestricted demand deposit 26,277,100 22,325,509 Banks 11,887,828 3,890,322 Receivables from money markets 1,652,102 - Other 388,193 253,792 Loans and advances to banks having maturity of more than 3 months (8,000) (22,000) Restricted cash and cash equivalents (21,221,265) (17,124,471) Unrealized foreign exchange rate differences on cash equivalents (8,426) (379) Total 20,947,063 11,108,769 5. Management comment on restricted cash and cash equivalents due to legal requirements or other reasons taking materiality principle into account Reserve requirements at CBRT amounting to TL 20,881,397 as at December 31, 2017 (December 31, 2016: TL 16,815,760) has not been included in cash and cash equivalents. Foreign currency bank deposits amounting to TL 339,868 (December 31, 2016: TL 308,711) is blocked and has not been included in cash and cash equivalents due to securitization loans and other ordinary banking operations of the Bank. VII. INFORMATION AND DISCLOSURES RELATED TO THE BANK’S RISK GROUP 1. Information on the volume of transactions with the Bank’s risk group, lending and deposits outstanding at period end and income and expenses in the current period Current Period Associates, Subsidiaries and Joint-Ventures Bank’s Direct and Indirect Shareholders Other Components in Risk Group Cash Non-Cash Cash Non-Cash Cash Non-Cash Loans and other receivables Balance at the beginning of the period 294,757 1,205,242 - 31,720 37,507 22,446 Balance at the end of the period 144,551 1,441,249 - 38,243 18,110 34,799 Interest and commission income 17,079 2,059 - 38 964 78 Prior Period Associates, Subsidiaries and Joint-Ventures Bank’s Direct and Indirect Shareholders Other Components in Risk Group Cash Non-Cash Cash Non-Cash Cash Non-Cash Loans and other receivables Balance at the beginning of the period 145,876 955,222 - 28,550 822 15,858 Balance at the end of the period 294,757 1,205,242 - 31,720 37,507 22,446 Interest and commission income 11,011 1,575 - 32 424 105