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 316 VakıfBank Annual Report 2017 Loans Prior Period Impaired (*) Past Due (**) Value Adjustments (***) Provisions Agricultural 127,068 56,562 1,580 107,103 Farming and raising livestock 116,360 51,912 1,424 98,027 Forestry 7,897 3,064 91 7,046 Fishing 2,811 1,586 65 2,030 Manufacturing 1,251,018 572,232 15,267 1,067,661 Mining 61,077 69,885 1,436 49,541 Production 1,178,844 490,172 13,644 1,008,911 Electric, Gas, Water 11,097 12,175 187 9,209 Construction 618,199 235,419 8,541 534,429 Services 1,854,467 2,237,522 49,129 1,559,932 Wholesale and retail trade 1,237,429 607,124 18,008 1,020,355 Hotel, Food and Beverage Services 137,051 97,034 2,808 117,059 Transportation and telecommunication 230,134 1,228,172 20,804 196,319 Financial Institutions 13,331 1,950 58 12,487 Real estate and renting services 45,269 32,707 1,104 42,390 Self-employment services 113,724 183,281 3,788 104,510 Education services 20,923 20,255 721 15,099 Health and social services 56,606 66,999 1,838 51,713 Other 2,852,631 3,215,435 232,451 2,263,483 Total 6,703,383 6,317,170 306,968 5,532,608 (*) Impaired loans are composed of group three, four and five loans. (**) Past due loans and other receivables consist of loans and other receivables that are past due up to ninety days. (***) Value adjustments represents general provisions of non-performing loans.  Information on Changes in Value Adjustments and Credit Provisions Current Period The opening Balance Provisions amounts set aside during the period The cancelation of the provisions Other Adjustments (*) Closing Balance Specific provisions 5,532,608 2,214,490 (937,669) 27,503 6,836,932 General provisions 2,167,443 208 (280,949) (1,209) 1,885,493 (*) Includes effect of currency translations differences and other provisions’ classifications. (**) In the Parent Bank the TL 500,000 which occurs under the General Provisions on the current period, has been cancelled as of December 31, 2017, and free provision was made in the same amount. Prior Period The opening Balance Provisions amounts set aside during the period The cancelation of the provisions Other Adjustments (*) Closing Balance Specific provisions 4,229,179 1,963,013 (668,315) 8,731 5,532,608 General provisions 1,957,603 213,855 - (4,015) 2,167,443 (*) Includes effect of currency translations differences and other provisions’ classifications