VKF_FRAE_2017

278 VakıfBank Annual Report 2017 PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT Audited Current Period December 31, 2017 Audited Prior Period December 31, 2016 Notes TL FC TOTAL TL FC TOTAL A. OFF-BALANCE SHEET COMMITMENTS AND CONTINGENCIES (I+II+III) 80,999,013 81,421,461 162,420,474 71,979,483 76,304,502 148,283,985 I. GUARANTEES AND SURETIES V-III-2-4 32,656,344 18,667,358 51,323,702 26,946,124 13,714,227 40,660,351 1.1 Letters of guarantee 32,035,061 8,135,927 40,170,988 26,687,992 5,628,335 32,316,327 1.1.1 Guarantees subject to State Tender Law 3,163,898 4,099,756 7,263,654 3,203,501 2,571,209 5,774,710 1.1.2 Guarantees given for foreign trade operations 1,053,872 - 1,053,872 1,059,516 - 1,059,516 1.1.3 Other letters of guarantee 27,817,291 4,036,171 31,853,462 22,424,975 3,057,126 25,482,101 1.2 Bank acceptances 44,700 1,510,854 1,555,554 53,702 1,143,484 1,197,186 1.2.1 Import letter of acceptance 671 519,399 520,070 - 395,874 395,874 1.2.2 Other bank acceptances 44,029 991,455 1,035,484 53,702 747,610 801,312 1.3 Letters of credit 30,161 8,963,991 8,994,152 1,762 6,911,368 6,913,130 1.3.1 Documentary letters of credit 30,161 8,963,991 8,994,152 1,762 6,911,368 6,913,130 1.3.2 Other letters of credit - - - - - - 1.4 Guaranteed pre-financings - 3,006 3,006 - 2,796 2,796 1.5 Endorsements - - - - - - 1.5.1 Endorsements to the Central Bank of the Republic of Turkey - - - - - - 1.5.2 Other endorsements - - - - - - 1.6 Marketable securities underwriting commitments - - - - - - 1.7 Factoring related guarantees 225,380 7,528 232,908 202,668 7,682 210,350 1.8 Other guarantees 81,074 43,996 125,070 - 16,890 16,890 1.9 Other sureties 239,968 2,056 242,024 - 3,672 3,672 II. COMMITMENTS 31,872,658 17,873,251 49,745,909 27,151,229 12,692,995 39,844,224 2.1 Irrevocable commitments 28,813,083 1,547,642 30,360,725 24,078,084 1,659,432 25,737,516 2.1.1 Asset purchase commitments V-III-1 793,979 961,190 1,755,169 1,362,697 1,502,055 2,864,752 2.1.2 Deposit purchase and sales commitments - - - - - - 2.1.3 Share capital commitments to associates and subsidiaries V-III-1 - - - - - - 2.1.4 Loan granting commitments V-III-1 11,843,577 74,556 11,918,133 9,817,555 34,042 9,851,597 2.1.5 Securities issuance brokerage commitments - - - - - - 2.1.6 Commitments for reserve deposit requirements - - - - - - 2.1.7 Commitments for cheque payments V-III-1 2,542,741 - 2,542,741 2,154,102 - 2,154,102 2.1.8 Tax and fund obligations on export commitments - - - - - - 2.1.9 Commitments for credit card limits V-III-1 10,534,862 - 10,534,862 8,682,835 - 8,682,835 2.1.10 Commitments for credit card and banking operations promotions 761,674 - 761,674 300,108 - 300,108 2.1.11 Receivables from “short” sale commitments on securities - - - - - - 2.1.12 Payables from “short” sale commitments on securities - - - - - - 2.1.13 Other irrevocable commitments 2,336,250 511,896 2,848,146 1,760,787 123,335 1,884,122 2.2 Revocable commitments 3,059,575 16,325,609 19,385,184 3,073,145 11,033,563 14,106,708 2.2.1 Revocable loan granting commitments 3,059,575 16,325,609 19,385,184 3,024,169 11,033,563 14,057,732 2.2.2 Other revocable commitments - - - 48,976 - 48,976 III. DERIVATIVE FINANCIAL INSTRUMENTS V-III-5 16,470,011 44,880,852 61,350,863 17,882,130 49,897,280 67,779,410 3.1 Derivative financial instruments held for risk management - - - - - - 3.1.1 Fair value hedges - - - - - - 3.1.2 Cash flow hedges - - - - - - 3.1.3 Net foreign investment hedges - - - - - - 3.2 Trading derivatives 16,470,011 44,880,852 61,350,863 17,882,130 49,897,280 67,779,410 3.2.1 Forward foreign currency purchases/sales 1,152,837 1,617,661 2,770,498 492,117 1,123,868 1,615,985 3.2.1.1 Forward foreign currency purchases 576,772 808,889 1,385,661 247,789 560,368 808,157 3.2.2.2 Forward foreign currency sales 576,065 808,772 1,384,837 244,328 563,500 807,828 3.2.2 Currency and interest rate swaps 9,715,102 31,666,680 41,381,782 16,341,272 37,911,234 54,252,506 3.2.2.1 Currency swaps-purchases 3,085,946 11,883,240 14,969,186 8,566,437 11,982,601 20,549,038 3.2.2.2 Currency swaps-sales 4,289,156 5,162,344 9,451,500 6,324,835 10,311,809 16,636,644 3.2.2.3 Interest rate swaps-purchases 1,170,000 7,310,548 8,480,548 725,000 7,808,412 8,533,412 3.2.2.4 Interest rate swaps-sales 1,170,000 7,310,548 8,480,548 725,000 7,808,412 8,533,412 3.2.3 Currency, interest rate and security options 426,094 431,542 857,636 142,676 730,632 873,308 3.2.3.1 Currency call options 412,706 13,400 426,106 121,124 306,804 427,928 3.2.3.2 Currency put options 13,388 418,142 431,530 21,552 423,828 445,380 3.2.3.3 Interest rate call options - - - - - - 3.2.3.4 Interest rate put options - - - - - - 3.2.3.5 Security call options - - - - - - 3.2.3.6 Security put options - - - - - - 3.2.4 Currency futures - - - - - - 3.2.4.1 Currency futures-purchases - - - - - - 3.2.4.2 Currency futures-sales - - - - - - 3.2.5 Interest rate futures - - - - - - 3.2.5.1 Interest rate futures-purchases - - - - - - 3.2.5.2 Interest rate futures-sales - - - - - - 3.2.6 Other 5,175,978 11,164,969 16,340,947 906,065 10,131,546 11,037,611 B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) 1,287,928,890 807,052,180 2,094,981,070 1,045,090,768 580,650,674 1,625,741,442 IV. ITEMS HELD IN CUSTODY 59,316,964 5,617,699 64,934,663 56,357,991 4,476,062 60,834,053 4.1 Customers’ securities held 923,511 - 923,511 796,204 - 796,204 4.2 Investment securities held in custody 43,471,833 135,880 43,607,713 43,543,703 147,806 43,691,509 4.3 Checks received for collection 10,617,821 2,607,299 13,225,120 9,441,126 2,589,510 12,030,636 4.4 Commercial notes received for collection 2,959,313 993,297 3,952,610 1,535,349 751,302 2,286,651 4.5 Other assets received for collection 2,152 151 2,303 2,152 141 2,293 4.6 Assets received through public offering - - - - - - 4.7 Other items under custody 140,536 743,875 884,411 49,414 87,056 136,470 4.8 Custodians 1,201,798 1,137,197 2,338,995n 990,043 900,247 1,890,290 V. PLEDGED ITEMS 315,488,892 132,707,352 448,196,244 280,719,507 104,200,492 384,919,999 5.1 Securities 740,033 5,090 745,123 495,623 16,366 511,989 5.2 Guarantee notes 708,473 524,748 1,233,221 767,642 544,996 1,312,638 5.3 Commodities 33,014,517 759,683 33,774,200 31,750,967 775,907 32,526,874 5.4 Warranties - - - - - - 5.5 Real estates 240,571,560 108,037,406 348,608,966 230,190,866 86,340,346 316,531,212 5.6 Other pledged items 39,693,039 23,254,495 62,947,534 16,964,074 16,365,309 33,329,383 5.7 Pledged items-depository 761,270 125,930 887,200 550,335 157,568 707,903 VI. CONFIRMED BILLS OF EXCHANGE AND SURETIES 913,123,034 668,727,129 1,581,850,163 708,013,270 471,974,120 1,179,987,390 TOTAL OFF-BALANCE SHEET ITEMS (A+B) 1,368,927,903 888,473,641 2,257,401,544 1,117,070,251 656,955,176 1,774,025,427 The accompanying explanations and notes form an integral part of these consolidated financial statements. CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES CONSOLIDATED OFF-BALANCE SHEET AS AT DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)