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 314 VakıfBank Annual Report 2017 Distribution of maturity risk factors according to their outstanding maturities (*) Risk Classifications-Prior Period According to their outstanding maturities 1 month 1-3 month 3-6 month 6-12 month 1 year and over Claims on sovereigns and Central Banks 5,378,866 225,795 409,148 1,583,377 50,433,893 Claims on regional governments or local authorities 1,782 21,645 28,086 388,627 4,314,617 Claims on administrative bodies and other non- commercial undertakings 42,633 278,512 9,991 64,845 925,080 Claims on multilateral development banks - - - - 3,705 Claims on international organizations - - - - - Claims on banks and intermediary institutions 6,646,906 2,506,413 270,739 481,645 7,481,386 Claims on corporate 2,748,096 3,463,594 6,864,871 11,067,646 51,094,974 Claims included in the regulatory retail portfolios 717,876 1,483,285 2,597,138 6,293,548 34,640,404 Claims secured by residential property 672,308 1,262,278 2,192,723 5,051,028 34,768,423 Past due loans - - - - 1,170,775 Higher risk categories decided by the Agency - 300 - - 402,375 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 - - - - - Stock Investments 3 - - - 650,564 Other claims 17,974 - - - 7,520,300 Total 16,226,444 9,241,822 12,372,696 24,930,716 193,406,496 (*) Risk amounts are given before credit risk mitigation, after multiplied by credit risk conversion ratio.   Risk balances according to risk weights Risk Weights Current Period 0% 10% 20% 35% 50% 75% 100% 150% 200% 250% 1250% Deductions from the shareholders’ equity Pre-Amount of Credit Risk Mitigation 86,314,704 - 6,519,704 23,271,806 46,149,416 50,830,366 111,410,324 220,666 - 62,596 - 443,678 Amount after Credit Risk Mitigation 89,381,822 - 4,909,786 23,271,806 48,686,466 50,496,251 107,750,188 220,667 - 62,596 - 443,678 Risk Weights Prior Period 0% 10% 20% %35 50% 75% 100% 150% 200% 250% 1250% Deductions from the shareholders’ equity Pre-Amount of Credit Risk Mitigation 32,700,554 - 9,993,765 21,214,639 56,561,380 45,732,250 89,572,911 205,588 - 197,087 - 505,694 Amount after Credit Risk Mitigation 39,936,159 - 4,432,856 21,214,639 58,565,139 45,441,195 86,185,511 205,588 - 197,087 - 505,694