VKF_FRAE_2017

279 VakıfBank Annual Report 2017 Notes Independent Auditor’s Current Period January 1, 2017- December 31, 2017 Independent Auditor’s Prior Period January 1, 2016- December 31, 2016 I. INTEREST INCOME 22,045,179 16,964,189 1.1 Interest income from loans V-IV-1 18,315,576 14,268,928 1.2 Interest income from reserve deposits 221,541 111,798 1.3 Interest income from banks V-IV-1 210,696 121,181 1.4 Interest income from money market transactions 35,753 600 1.5 Interest income from securities portfolio V-IV-1 2,914,538 2,230,139 1.5.1 Trading financial assets 19,051 8,946 1.5.2 Financial assets designated at fair value through profit or loss - - 1.5.3 Available-for-sale financial assets 1,735,213 1,513,449 1.5.4 Held-to-maturity investments 1,160,274 707,744 1.6 Finance lease income 138,960 110,201 1.7 Other interest income 208,115 121,342 II. INTEREST EXPENSE 13,073,305 9,727,956 2.1 Interest expense on deposits V-IV-2 9,200,620 7,194,767 2.2 Interest expense on funds borrowed V-IV-2 841,072 508,116 2.3 Interest expense on money market transactions 1,553,389 1,007,022 2.4 Interest expense on securities issued V-IV-2 1,059,739 691,897 2.5 Other interest expenses 418,485 326,154 III. NET INTEREST INCOME (I – II) 8,971,874 7,236,233 IV. NET FEES AND COMMISSIONS INCOME 1,235,550 912,483 4.1 Fees and commissions received 1,896,758 1,458,702 4.1.1 Non-cash loans 300,942 229,775 4.1.2 Others 1,595,816 1,228,927 4.2 Fees and commissions paid 661,208 546,219 4.2.1 Non-cash loans 4,190 1,916 4.2.2 Others 657,018 544,303 V. DIVIDEND INCOME V-IV-3 47,481 61,736 VI. TRADING INCOME/LOSSES (Net) V-IV-4 194,447 505,038 6.1 Trading account income/losses V-IV-4 48,446 24,051 6.2 Income/losses from derivative financial instruments V-IV-4 (15,681) 354,798 6.3 Foreign exchange gains/losses V-IV-4 161,682 126,189 VII. OTHER OPERATING INCOME V-IV-5 3,085,245 2,004,336 VIII. TOTAL OPERATING PROFIT (III+IV+V+VI+VII) 13,534,597 10,719,826 IX. PROVISION FOR LOSSES ON LOANS AND OTHER RECEIVABLES (-) V-IV-6 2,842,558 2,333,609 X. OTHER OPERATING EXPENSES (-) V-IV-7 5,734,147 4,906,704 XI. NET OPERATING PROFIT/LOSS (VIII-IX-X) 4,957,892 3,479,513 XII. INCOME RESULTED FROM MERGERS - - XIII. INCOME/LOSS FROM INVESTMENTS UNDER EQUITY ACCOUNTING 51,481 37,267 XIV. GAIN/LOSS ON NET MONETARY POSITION - - XV. INCOME/LOSS FROM CONTINUING OPERATIONS BEFORE TAXES (XI+…+XIV) 5,009,373 3,516,780 XVI. CONTINUING OPERATIONS PROVISION FOR TAXES V-IV-11 (992,027) (724,334) 16.1 Current tax charges (831,655) (741,888) 16.2 Deferred tax credits (160,372) 17,554 XVII. NET INCOME/LOSS AFTER TAXES FROM CONTINUING OPERATIONS (XV±XVI) V-IV-12 4,017,346 2,792,446 XVIII. INCOME FROM DISCONTINUED OPERATIONS - - 18.1 Income from investment properties - - 18.2 Income from sales of subsidiaries, affiliates and joint-ventures - - 18.3 Other income from discontinued activities - - XIX. EXPENSES FROM DISCONTINUED OPERATIONS(-) - - 19.1 Investment property expenses - - 19.2 Losses from sales of subsidiaries, affiliates and joint ventures - - 19.3 Other expenses from discontinued activities - - XX. INCOME/LOSS FROM DISCONTINUED OPERATIONS BEFORE TAXES(XVIII-XIX) - - XXI. DISCONTINUED OPERATIONS PROVISION FOR TAXES(±) - - 21.1 Current tax charge - - 21.2 Deferred tax charge - - XXII. NET INCOME/LOSS AFTER TAXES FROM DISCONTINUED OPERATIONS(XX±XXI) - - XXIII. NET PROFIT/LOSS (XVI+XXII) V-IV-12 4,017,346 2,792,446 23.1. Equity holders of the Bank 3,932,432 2,789,918 23.2. Non-controlling interest(-) 84,914 2,528 Earnings per 100 Share (full TL) III-XXIV 1.5730 1.1160 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 STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) The accompanying explanations and notes form an integral part of these consolidated financial statements.