VKF_FRAE_2017

349 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.) Credit Risk Exposure and Credit Risk Mitigation (CRM) Effects Current Period Exposures before Credit Conversion Factors and CRM Exposures post- Credit Conversion Factors and CRM RWA and RWA density Asset classes On-balance sheet amount Off-balance sheet amount On-balance sheet amount Off-balance sheet amount RWA RWA density 1 Exposures to central governments or central banks 83,964,302 1,395,677 86,934,545 802,646 5,140,577 6% 2 Exposures to regional governments or local authorities 6,667,730 518,181 6,667,730 241,940 3,416,805 49% 3 Exposures to public sector entities 301,326 311,734 301,326 137,108 425,036 97% 4 Exposures to multilateral development banks 18,032 1,583 18,032 1,583 18,032 92% 5 Exposures to international organizations - - - - - 0% 6 Exposures to institutions 8,266,758 1,990,510 8,266,758 1,264,050 4,260,234 45% 7 Exposures to corporates 72,362,193 66,603,953 69,391,950 23,989,142 91,627,602 98% 8 Retail exposures 47,612,387 24,689,970 47,612,387 3,212,915 37,888,045 75% 9 Exposures secured by residential property 22,850,866 931,214 22,850,866 420,940 8,145,132 35% 10 Exposures secured by commercial real estate 23,816,613 2,279,165 23,816,613 1,301,591 15,449,818 62% 11 Past-due loans 1,106,254 - 1,106,254 - 1,106,254 100% 12 Higher-risk categories by the Agency Board 274,628 15,305 274,628 8,635 487,490 172% 13 Exposures in the form of covered bonds - - - - - 0% 14 Exposures to institutions and corporates with a short-term credit assessment - - - - - 0% 15 Exposures in the form of units or shares in collective investment undertakings (CIUs) 263 - 263 - 263 0% 16 Other assets 10,375,891 - 10,375,891 - 8,072,913 78% 17 Investment in equities 707,498 - 707,498 - 707,498 100% 18 Total 278,324,741 98,737,292 278,324,741 31,380,550 176,745,699 57% Prior Period Exposures before Credit Conversion Factors and CRM Exposures post- Credit Conversion Factors and CRM RWA and RWA density Asset classes On-balance sheet amount Off-balance sheet amount On-balance sheet amount Off-balance sheet amount RWA RWA density 1 Exposures to central governments or central banks 51,462,827 492,584 53,883,670 241,211 13,566,988 25% 2 Exposures to regional governments or local authorities 4,597,033 344,708 4,597,033 156,470 2,345,893 49% 3 Exposures to public sector entities 636,031 1,373,402 636,031 667,205 1,298,648 100% 4 Exposures to multilateral development banks 3,705 - 3,705 - - 0% 5 Exposures to international organizations - - - - - 0% 6 Exposures to institutions 5,149,430 1,682,800 5,149,432 956,406 2,486,006 41% 7 Exposures to corporates 60,375,270 50,259,565 57,954,425 17,018,385 73,095,869 97% 8 Retail exposures 42,990,135 20,892,607 42,990,135 2,703,720 34,068,749 75% 9 Exposures secured by residential property 20,926,182 703,497 20,926,182 288,457 7,425,123 35% 10 Exposures secured by commercial real estate 22,075,082 1,401,642 22,075,082 657,040 14,085,290 62% 11 Past-due loans 1,170,775 - 1,170,775 - 1,170,775 100% 12 Higher-risk categories by the Agency Board 402,675 - 402,675 - 801,099 199% 13 Exposures in the form of covered bonds - - - - - 0% 14 Exposures to institutions and corporates with a short-term credit assessment - - - - - 0% 15 Exposures in the form of units or shares in collective investment undertakings (CIUs) - - - - - 0% 16 Other assets 7,538,274 - 7,538,274 - 5,542,948 74% 17 Investment in equities 650,567 - 650,567 - 650,567 100% 18 Total 217,977,986 77,150,805 217,977,986 22,688,894 156,537,955 65%