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 336 VakıfBank Annual Report 2017 Major financial statement items according to business lines: Current Period Retail Banking Corporate Banking Investment Banking Other Total Operations OPERATING INCOME/ EXPENSES Interest Income 5,627,234 11,312,319 5,086,543 19,083 22,045,179 Interest income from loans 5,627,234 10,984,327 1,704,015 - 18,315,576 Interest income from reserve deposits - - 221,541 - 221,541 Interest income from securities portfolio - - 2,914,538 - 2,914,538 Interest income from banks - - 210,696 - 210,696 Interest income from money market transactions - - 35,753 - 35,753 Finance lease income - 138,960 - - 138,960 Other interest income - 189,032 - 19,083 208,115 Interest Expense 4,372,191 4,762,843 3,866,395 71,876 13,073,305 Interest expense on deposits 4,372,191 4,578,537 249,892 - 9,200,620 Interest expense on funds borrowed - 184,306 656,766 - 841,072 Interest expense on money market transactions - - 1,553,389 - 1,553,389 Interest expense on securities issued - - 1,059,739 - 1,059,739 Other interest expenses - - 346,609 71,876 418,485 Net Interest Income 1,255,043 6,549,476 1,220,148 (52,793) 8,971,874 Net Fees and Commissions Income 497,841 653,288 84,421 - 1,235,550 Trading Income/ Losses (Net) - - 194,447 - 194,447 Dividend Income - - 47,481 - 47,481 Other Income (*) - - - 3,085,245 3,085,245 Provision For Losses on Loans and Other Receivables 484,334 1,827,038 30,979 500,207 2,842,558 Other Expenses (**) - - - 5,734,147 5,734,147 Income/Loss From Investments Under Equity Accounting - - 51,481 - 51,481 Profit Before Taxes 1,268,550 5,375,726 1,566,999 (3,201,902) 5,009,373 Provision for taxes - - - (992,027) (992,027) Net Profit/ Loss 1,268,550 5,375,726 1,566,999 (4,193,929) 4,017,346 SEGMENT ASSETS Securities Portfolio - - 31,466,427 - 31,466,427 Derivative Financial Assets Held for Trading Purpose - - 1,946,251 - 1,946,251 Banks and Receivables From Money Markets - - 14,982,861 - 14,982,861 Investments in Associates and Subsidiaries - - 664,101 - 664,101 Loans and Receivables 48,230,054 107,804,983 30,513,747 - 186,548,784 Other Assets - 4,072,502 29,037,351 12,140,729 45,250,582 TOTAL ASSETS 48,230,054 111,877,485 108,610,738 12,140,729 280,859,006 SEGMENT LIABILITIES Deposits 68,788,960 79,419,515 9,779,391 - 157,987,866 Derivative Financial Liabilities Held for Trading Purpose - - 1,180,542 - 1,180,542 Interbank Money Market Takings - - 22,689,075 - 22,689,075 Funds Borrowed - 571,707 30,816,081 - 31,387,788 Securities Issued - - 19,870,759 - 19,870,759 Other Liabilities - 437 6,683,061 10,547,605 17,231,103 Provisions and Tax Liabilities - - - 6,888,908 6,888,908 Equity - - - 23,622,965 23,622,965 TOTAL LIABILITIES AND EQUITY 68,788,960 79,991,659 91,018,909 41,059,478 280,859,006 (*) TL 1,207,630 amount of TL 3,085,245 shown in other income consist of acquired insurance premiums, TL 937,669 of income from reversal of the specific provisions for loans from prior periods, TL 149,607 of income from the sale of Group’s assets, TL 43,602 from communications income, TL 770 of leasing income, TL 102,575 of income from private pension activities and the remaining TL 643,392 of other operating income. (**) TL 1,979,798 amount of TL 5,734,147 shown in other expenses line consists of personnel expenses, TL 2,413,794 of other operating expenses, TL 180,430 of depreciation expenses, TL 168,500 of dividend reserves expenses to be given to personnel, TL 168,783 of Savings Deposit Insurance Fund (SDIF) expenses, TL 163,010 of taxes and funds expenses, TL 9,807 pension compensations, TL 91,727 from cumulative/noncumulative commission expenses, TL 251,574 from production commission expenses and the remaining TL 306,724 of other expenses.