VKF_FRAE_2017

337 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.) Prior Period Retail Banking Corporate Banking Investment Banking Other Total Operations OPERATING INCOME/ EXPENSES Interest Income 4,959,825 8,323,574 3,667,054 13,736 16,964,189 Interest income from loans 4,959,825 8,105,767 1,203,336 - 14,268,928 Interest income from reserve deposits - - 111,798 - 111,798 Interest income from securities portfolio - - 2,230,139 - 2,230,139 Interest income from banks - - 121,181 - 121,181 Interest income from money market transactions - - 600 - 600 Finance lease income - 110,201 - - 110,201 Other interest income - 107,606 - 13,736 121,342 Interest Expense 3,387,865 3,631,947 2,655,536 52,608 9,727,956 Interest expense on deposits 3,387,865 3,552,149 254,753 - 7,194,767 Interest expense on funds borrowed - 79,798 428,318 - 508,116 Interest expense on money market transactions - - 1,007,022 - 1,007,022 Interest expense on securities issued - - 691,897 - 691,897 Other interest expenses - - 273,546 52,608 326,154 Net Interest Income 1,571,960 4,691,627 1,011,518 (38,872) 7,236,233 Net Fees and Commissions Income 425,547 410,527 76,409 - 912,483 Trading Income/ Losses (Net) - - 505,038 - 505,038 Dividend Income - - 61,736 - 61,736 Other Income (*) - - - 2,004,336 2,004,336 Provision For Losses on Loans and Other Receivables 431,238 1,657,372 30,432 214,567 2,333,609 Other Expenses (**) - - - 4,906,704 4,906,704 Income/Loss From Investments Under Equity Accounting - - 37,267 - 37,267 Profit Before Taxes 1,566,269 3,444,782 1,661,536 (3,155,807) 3,516,780 Provision for taxes - - - (724,334) (724,334) Net Profit/ Loss 1,566,269 3,444,782 1,661,536 (3,880,141) 2,792,446 SEGMENT ASSETS Securities Portfolio - - 26,981,296 - 26,981,296 Derivative Financial Assets Held for Trading Purpose - - 1,607,552 - 1,607,552 Banks and Receivables From Money Markets - - 5,280,721 - 5,280,721 Investments in Associates and Subsidiaries - - 622,930 - 622,930 Loans and Receivables 41,432,801 83,828,729 24,313,739 - 149,575,269 Other Assets - 2,937,123 24,223,603 9,442,506 36,603,232 TOTAL ASSETS 41,432,801 86,765,852 83,029,841 9,442,506 220,671,000 SEGMENT LIABILITIES Deposits 54,570,012 66,613,397 5,075,900 - 126,259,309 Derivative Financial Liabilities Held for Trading Purpose - - 1,154,424 - 1,154,424 Interbank Money Market Takings - - 13,244,271 - 13,244,271 Funds Borrowed - 662,429 25,637,001 - 26,299,430 Securities Issued - - 14,682,824 - 14,682,824 Other Liabilities - 81 5,758,436 7,568,869 13,327,386 Provisions and Tax Liabilities - - - 6,095,884 6,095,884 Equity - - - 19,607,472 19,607,472 TOTAL LIABILITIES AND EQUITY 54,570,012 67,275,907 65,552,856 33,272,225 220,671,000 (*) TL 668,315 amount of TL 2,004,336 of income from reversal of the specific provisions for loans from prior periods, TL 892,467 of acquired insurance premiums, TL 165,307 of income from the sale of Group’s assets, TL 40,316 of communications income, TL 78,307 of income from private pension activities, TL 987 of leasing income and the remaining TL 158,637 of other operating income. (**) TL 1,663,884 amount of TL 4,906,704 shown in other expenses line consists of personnel expenses, TL 1,984,578 of other operating expenses, TL 186,400 of depreciation expenses, TL 147,970 of dividend reserves expenses to be given to personnel, TL 138,469 of Savings Deposit Insurance Fund (SDIF) expenses, TL 141,588 of taxes and funds expenses, TL 47,034 pension compensations, TL 79,694 from cumulative/noncumulative commission expenses, TL 240,428 from production commission expenses and the remaining TL 276,659 of other expenses.