VKF_FRAE_2017

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 EXPLANATIONS AND NOTES RELATED TO THE CONSOLIDATED 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 308 VakıfBank Annual Report 2017 The Group’s largest 200 non-cash loan customers compose 65.02% of the total non-cash loan portfolio (December 31, 2016: 67.94%). The Group’s largest 200 cash loan customers compose 21.43% of total assets of the Group and the Bank’s largest 200 non-cash loan customers compose 20.54% of total off-balance sheet items (December 31, 2016: 22.19% and 18.63%). The general provision for credit risk amounts to TL 1,885,493 (December 31, 2016: TL 2,167,443) Risk Classifications: Current Period Risk Amount (**) Average Risk Amount (*)(**) Claims on sovereigns and Central Banks 94,576,550 75,796,482 Claims on regional governments or local authorities 6,911,220 5,775,138 Claims on administrative bodies and other non-commercial undertakings 438,918 1,108,723 Claims on multilateral development banks 19,615 17,081 Claims on international organizations - - Claims on banks and intermediary institutions 17,508,822 14,473,488 Claims on corporate 93,630,912 84,784,246 Claims included in the regulatory retail portfolios 50,830,366 48,090,373 Claims secured by residential property 48,390,011 46,101,812 Past due loans 1,106,254 1,145,360 Higher risk categories decided by the Agency 283,262 271,061 Marketable securities secured by mortgages - - Securitization exposures - - Short-term claims and short-term corporate claims on banks and intermediary institutions - - Undertakings for collective investments in mutual funds 263 168 Stock Investments 707,498 682,341 Other claims 10,375,891 8,433,671 (*) Average risk amount is calculated based on the arithmetic average of the monthly risk amounts after conversion for January-December 2017 period. (**) Before reducing the credit risk, the rate of the post credit conversion is given. Risk Classifications: Prior Period Risk Amount (**) Average Risk Amount (*)(**) Claims on sovereigns and Central Banks 58,031,079 61,716,668 Claims on regional governments or local authorities 4,754,757 4,084,721 Claims on administrative bodies and other non-commercial undertakings 1,321,061 1,499,245 Claims on multilateral development banks 3,705 436 Claims on international organizations - - Claims on banks and intermediary institutions 17,387,089 13,984,837 Claims on corporate 75,239,181 68,943,308 Claims included in the regulatory retail portfolios 45,732,251 40,238,614 Claims secured by residential property 43,946,760 39,721,096 Past due loans 1,170,775 1,050,056 Higher risk categories decided by the Agency 402,675 2,140,556 Marketable securities secured by mortgages - - Securitization exposures - - Short-term claims and short-term corporate claims on banks and intermediary institutions - - Undertakings for collective investments in mutual funds - 5 Stock Investments 650,567 576,735 Other claims 7,538,274 6,986,070 (*) Average risk amount is calculated based on the arithmetic average of the monthly risk amounts after conversion for January-December 2016 period. (**) Before reducing the credit risk, the rate of the post credit conversion is given.