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 332 VakıfBank Annual Report 2017 Summary comparison table of the total risk amount and the total asset amount in the consolidated financial statements prepared as per TAS Current Period Prior Period Total asset amount in the consolidated financial statements prepared as per TAS (1) 243,233,266 218,939,563 The difference between the total asset amount in the consolidated financial statements prepared as per TAS and the asset amount in the consolidated financial statements prepared as per the Communiqué on the Preparation of the Consolidated Financial Statements of Banks (1) (1,913,734) (1,731,437) The difference between the derivative financial instruments and the loan derivatives amount in the consolidated financial statements prepared as per the Communiqué on the Preparation of the Consolidated Financial Statements of Banks and the risk amounts (2) (2,434,636) (2,033,927) The difference between the financial transactions with securities or goods warranty amounts in the consolidated financial statements prepared as per the Communiqué on the Preparation of the Consolidated Financial Statements of Banks and the risk amounts (2) 7,733,292 8,970,906 The difference between the off-balance sheet transactions amount in the consolidated financial statements prepared as per the Communiqué on the Preparation of the Consolidated Financial Statements of Banks and the risk amounts (2) 18,349,982 12,271,448 Other differences between the amount in the consolidated financial statements prepared as per the Communiqué on the Preparation of the Consolidated Financial Statements of Banks and the risk amounts (2) (98,128,516) (84,701,860) Total risk amount 316,732,130 283,709,054 (1) The amounts represent June 30, 2017 and December 31, 2016 balances of consolidated financial statements prepared as per the sixth paragraph of Article 5 of the Communiqué on the Preparation of the Consolidated Financial Statements of Banks. (2) The balances in the table represent the average of three months. Leverage ratio common disclosure template On-balance sheet exposures Current Period (*) Prior Period (*) 1 On-balance sheet items (excluding derivatives and SFTs; including collateral) 271,106,074 216,824,485 2 Assets deducted in determining Basel III Tier 1 capital (416,652) (314,602) 3 Total on-balance sheet exposures (excluding derivatives and SFTs) 270,689,422 216,509,883 Derivative exposures 4 Replacement cost 2,364,565 1,384,507 5 Add-on amount 625,658 649,441 6 Total derivative exposures 2,990,223 2,033,948 Securities financing transaction exposures 7 Gross SFT assets (with no recognition of accounting netting) 657,737 653,844 8 Agent transaction exposures - - 9 Total securities financing transaction exposures 657,737 653,844 Other off-balance sheet exposures 10 Off-balance sheet exposures with gross nominal amount 80,461,669 63,161,241 11 Adjustment amount off-balance sheet exposures with credit conversion factor 2,009,397 1,350,160 12 Total off-balance sheet exposures 82,471,066 64,511,401 Capital and total exposures 13 Tier 1 capital 22,786,340 19,017,854 14 Total exposures 356,808,448 283,709,076 Leverage ratio 15 Leverage ratio 6.39 6.71 (*) Calculated by using three month average of balances in Leverage Rate Notification table.