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 334 VakıfBank Annual Report 2017 The classification of fair value measurements of financial assets and liabilities measured at fair value is as follows: December 31, 2017 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit/loss: Financial assets held for trading purpose: 13,048 2,063,175 - 2,076,223 Debt securities 6,729 116,924 - 123,653 Derivative financial assets held for trading purpose - 1,946,251 - 1,946,251 Investment funds 5,380 - - 5,380 Equity securities 939 - - 939 Available-for-sale financial assets 11,554,994 3,015,375 15 (**) 14,570,384 Equity securities - 43,355 15 43,370 Debt securities 11,554,994 2,972,020 - 14,527,014 Investments in associates and subsidiaries 310,918 - 291,653 (*) 602,571 Total Financial Assets 11,878,960 5,078,550 291,668 17,249,178 Financial liabilities at fair value through profit/loss: Derivative financial liabilities held for trading purpose - (1,180,542) - (1,180,542) Total Financial Liabilities - (1,180,542) - (1,180,542) (*) This amount consist of fair value of the affiliates and subsidiaries determined by independent valuation companies. (**) TL 15, which is classified under financial assets available-for-sale and which is in the third level is composed of securities issued share in capital. December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit/loss: Financial assets held for trading purpose: 182,264 1,606,969 - 1,789,233 Debt securities 171,585 - - 171,585 Derivative financial assets held for trading purpose 583 1,606,969 - 1,607,552 Investment funds 8,001 - - 8,001 Equity securities 2,095 - - 2,095 Available-for-sale financial assets 16,071,306 2,547,759 15 (**) 18,619,080 Equity securities - 27,595 15 27,610 Debt securities 16,071,306 2,520,164 - 18,591,470 Investments in associates and subsidiaries - - 298,705 (*) 298,705 Total Financial Assets 16,253,570 4,154,728 298,720 20,707,018 Financial liabilities at fair value through profit/loss: Derivative financial liabilities held for trading purpose - (1,154,424) - (1,154,424) Total Financial Liabilities - (1,154,424) - (1,154,424) (*) This amount consist of fair value of the affiliates and subsidiaries determined by independent valuation companies. (**) TL 15, which is classified under financial assets available-for-sale and which is in the third level is composed of securities issued share in capital.