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 320 VakıfBank Annual Report 2017 Information on currency risk Current Period Euro US Dollar Other FC Total Assets: Cash and balances with the Central Bank of the Republic of Turkey 3,790,729 14,497,302 6,346,773 24,634,804 Banks 1,841,979 9,857,191 447,733 12,146,903 Financial assets at fair value through profit or loss (1) 9,774 126,467 - 136,241 Interbank money market placements - - - - Available-for-sale financial assets 1,041,343 1,117,005 - 2,158,348 Loans and receivables (2) 27,550,577 32,370,838 74,494 59,995,909 Associates, subsidiaries and joint-ventures 3 - - 3 Held-to-maturity investments 570,123 3,960,542 - 4,530,665 Derivative financial assets held for risk management purpose - - - - Tangible assets 1,753 7,619 - 9,372 Intangible assets 302 - - 302 Other assets (3) (4) 2,415,536 3,265,878 2,680 5,684,094 Total assets 37,222,119 65,202,842 6,871,680 109,296,641 Liabilities: Bank deposits 370,001 7,583,591 313,320 8,266,912 Foreign currency deposits 20,182,588 24,865,394 1,876,730 46,924,712 Interbank money market takings 180,920 3,571,811 - 3,752,731 Funds borrowed 12,569,352 16,560,895 - 29,130,247 Securities issued 4,570,699 8,332,516 - 12,903,215 Miscellaneous payables 748,589 182,200 58,901 989,690 Derivative financial liabilities held for risk management purpose - - - - Other liabilities (1) (4) (5) 252,839 8,131,647 11,964 8,396,450 Total liabilities 38,874,988 69,228,054 2,260,915 110,363,957 Net ‘on balance sheet’ position (1,652,869) (4,025,212) 4,610,765 (1,067,316) Net ‘off-balance sheet’ position 2,191,663 4,803,952 (4,607,585) 2,388,030 Derivative assets (6) 5,174,385 18,670,060 270,591 24,115,036 Derivative liabilities (6) 2,982,722 13,866,108 4,878,176 21,727,006 Non-cash loans (7) 5,616,304 12,773,108 277,946 18,667,358 Prior Period Euro US Dollar Other FC Total Total assets 29,643,175 53,825,420 4,721,041 88,189,636 Total liabilities 30,154,430 54,523,092 1,438,251 86,115,773 Net ‘on balance sheet’ position (511,255) (697,672) 3,282,790 2,073,863 Net ‘off-balance sheet’ position 665,383 2,658,591 (3,282,690) 41,284 Derivative assets (6) 3,755,331 21,698,055 290,944 25,744,330 Derivative liabilities (6) 3,089,948 19,039,464 3,573,634 25,703,046 Non-cash loans (7) 4,082,706 9,339,955 291,566 13,714,227 (1) Derivative financial assets amounting to TL 13,982 (December 31, 2016: TL 21,109) and liabilities amounting to TL 34,557 (December 31, 2016: TL 43,941) resulting from changes in foreign exchange rates are not included. (2) Foreign currency indexed loans amounting to TL 4,702,183 (December 31, 2016: TL 4,493,820) presented in TL in the financial statements are included in the above table. (3) Foreign currency indexed factoring receivables amounted to TL 259,923 (December 31, 2016: TL 150,892) presented in TL column in the accompanying consolidated balance sheet are included. (4) Prepaid expenses amounting to TL 95,376 (December 31, 2016: TL 80,727) are not included. (5) Unearned income amounting to TL 197,598 (December 31, 2016: TL 165,259), deferred tax liabilities amounted to TL 60,252 (December 31, 2016: 9,632) and equity amounting to TL 631,816 TL (December 31, 2016: TL 453,469) are not included. (6) Asset purchase commitments amounting to TL 232,555 (December 31, 2016: TL 918,356), asset sales commitments amounting to TL 728,635 (December 31, 2016: TL 583,699) are included. (7) Non-cash loans are not taken into consideration in the calculation of the net ‘off-balance sheet’ position.