VKF_FRAE_2017

317 VakıfBank Annual Report 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.) Fair value of collateral held against impaired loans December 31, 2017 December 31, 2016 Cash collateral (*) - - Mortgage 3,108,721 2,551,197 Promissory note (*) - - Others (**) 4,834,465 4,152,186 Total 7,943,186 6,703,383 (*) As a policy, it is aimed to utilize from cash collateral or liquidate promissory note for an impaired loan collateralized by cash collateral or promissory note to cover the credit risk. Hence, cash collateral and promissory note are shown as zero in the table above. (**) Sureties obtained for impaired loans are presented in this raw to the extent that the amount does not exceed the amount of impaired loans. The detail of collateral held against performing cash and non-cash loans by the Group Cash loans December 31, 2017 December 31, 2016 Secured Loans: 144,015,639 114,150,134 Secured by mortgages 46,691,223 43,031,980 Secured by cash collateral 804,174 976,854 Guarantees issued by financial institutions 617,766 581,869 Secured by government institutions or government securities 19,124,808 2,420,844 Other collateral (pledge on assets, corporate and personal guarantees, promissory notes) 76,777,668 67,138,587 Unsecured Loans 45,499,393 37,191,483 Total performing loans 189,515,032 151,341,617 Non-cash loans December 31, 2017 December 31, 2016 Secured Loans: 24,609,912 16,831,486 Secured by mortgages 3,210,379 2,105,139 Secured by cash collateral 149,782 126,971 Guarantees issued by financial institutions 239,268 240,422 Secured by treasury or public sector marketable securities 570,608 - Other collateral (pledge on assets, corporate and personal guarantees, promissory notes) 20,439,875 14,358,954 Unsecured Loans 26,713,790 23,828,865 Total non-cash loans 51,323,702 40,660,351