VKF_FRAE_2017

321 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.) Exposure to currency risk 10 percent depreciation of the TL against the following currencies as at and for the year ended December 31, 2017 and 2016 would have effect on consolidated equity and the consolidated statement of income (without tax effects) by the amounts shown in the table below. This analysis assumes that all other variables, in particular interest rates, remain constant. December 31, 2017 December 31, 2016 Profit or loss Equity (*) Profit or loss Equity (*) US Dollar 77,112 77,112 195,299 195,299 Euro 53,674 114,642 15,267 15,267 Other currencies 318 318 10 10 Total, net (**) 131,104 192,072 210,576 210,576 (*) Equity effect also includes profit or loss effect of 10% devaluation of TL against related currencies. (**) Associates, subsidiaries, joint ventures, tangible and intangible assets are not included to the analysis. 10 percent appreciation of the TL against the following currencies as at and for the year ended December 31, 2017 and 2016 would have effect on consolidated equity and consolidated statement of income (without tax effects) by the amounts shown in the table below. December 31, 2017 December 31, 2016 Profit or loss Equity (*) Profit or loss Equity (*) US Dollar (77,112) (77,112) (195,299) (195,299) Euro (53,674) (114,642) (15,267) (15,267) Other currencies (318) (318) (10) (10) Total, net (**) (131,104) (192,072) (210,576) (210,576) (*) Equity effect also includes profit or loss effect of 10% revaluation of TL against related currencies. (**) Associates, subsidiaries, joint ventures, tangible and intangible assets are not included to the analysis. IV. CONSOLIDATED INTEREST RATE RISK Interest sensitivity of assets, liabilities and off-balance sheet items is evaluated during the weekly Assets-Liabilities Committee meetings taking into account the developments in market conditions. The Parent Bank’s interest rate risk is measured by the standard method. Measurements for standard method are carried out monthly using the maturity ladder table.