VKF_FRAE_2017

347 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.) Breakdown of restructured receivables based on whether or not provisions are allocated Changes Made to Extend Payment Plan Current Period Prior Period Loans restructured from Standard Loans and Other Receivables 2,664,938 1,473,046 Loans restructured from Loans under Follow-up and Other Receivables 1,558,327 1,534,582 Loans restructured from Non-Performing Loans 335,136 392,162 b) Credit Risk Mitigation Qualitative disclosure on credit risk mitigation techniques Credit risk mitigation techniques in the Parent Bank are evaluated within the scope of the “Policy Document on Credit Risk Management”. Within the scope of “Communiqué on Credit Risk Mitigation”, published in the Official Gazette dated September 6, 2014, numbered 29111 simple financial guarantee method is used for financial guarantees. Cash and cash equivalents, Treasury Support Containing Credit Guarantee Fund Securities and guarantees are used to mitigate credit risk. Policies regarding the valuation of financial collateral and the appraisal of the valuations and policies and procedures for the valuation of real estate established for the collateral of mortgage-backed loans, which are an asset class, have been established. These policies and procedures have been prepared in accordance with the “Communiqué on Credit Risk Mitigation” and cover the minimum requirements for collateral valuation and management. The Parent Bank receives collaterals such as mortgages, sureties/guarantees and financial collaterals for the loans given. Credit Risk Mitigation Techniques Current Period Exposures unsecured: carrying amount Exposures secured by collaterals Exposures secured by collateral, of which: secured amount Exposures secured by financial guarantees Exposures secured by financial guarantees, of which: secured amount Exposures secured by credit derivatives Exposures secured by credit derivatives, of which: secured amount 1 Loans 112,239,146 78,382,140 66,629,280 3,652,598 3,128,437 - - 2 Debt Securities 30,864,623 - - - - - - 3 Total 143,103,769 78,382,140 66,629,280 3,652,598 3,128,437 - - 4 Of which Defaulted 7,943,186 - - - - - - Prior Period Exposures unsecured: carrying amount Exposures secured by collaterals Exposures secured by collateral, of which: secured amount Exposures secured by financial guarantees Exposures secured by financial guarantees, of which: secured amount Exposures secured by credit derivatives Exposures secured by credit derivatives, of which: secured amount 1 Loans 97,586,808 54,925,584 46,872,614 3,076,521 2,649,313 - - 2 Debt Securities 26,772,005 - - - - - - 3 Total 124,358,813 54,925,584 46,872,614 3,076,521 2,649,313 - - 4 Of which Defaulted 6,703,383 - - - - - -