VKF_FRAE_2017

365 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.) Specific provisions for loans Specific Provisions Current Period Prior Period Loans and receivables with limited collectability 153,441 389,259 Loans and receivables with doubtful collectability 430,333 553,966 Uncollectible loans and receivables 6,253,158 4,589,383 Total 6,836,932 5,532,608 Information on non-performing loans (Net) Information on non-performing loans and other receivables restructured or rescheduled Group III Group IV Group V Loans and receivables with limited collectability Loans and receivables with doubtful collectability Uncollectible loans and receivables Current period 80,662 118,684 135,790 (Gross amounts before the specific reserves) - - - Loans and other receivables which are restructured - - - Rescheduled loans and other receivables 80,662 118,684 135,790 Prior period 137,005 176,551 78,606 (Gross amounts before the specific reserves) - - - Loans and other receivables which are restructured - - - Rescheduled loans and other receivables 137,005 176,551 78,606 Movements in non-performing loan groups Group III Group IV Group V Loans and receivables with limited collectability Loans and receivables with doubtful collectability Uncollectible loans and receivables Balance at the beginning of the period 946,968 1,107,117 4,649,298 Additions (+) 2,847,948 148,142 220,657 Transfers from other categories of loans under follow-up (+) - 2,515,964 2,240,565 Transfers to other categories of loans under follow-up (-) (*) 2,692,529 2,556,278 119,519 Collections (-) 338,335 340,677 699,155 Write-offs (-) - - 4,054 Corporate and commercial loans - - 4,054 Retail loans - - - Credit cards - - - Other - - - Currency differences - - 17,074 Balance at the end of the period 764,052 874,268 6,304,866 Specific provisions (-) (**) 153,441 430,333 6,253,158 Net balance on balance sheet 610,611 443,935 51,708 (*) Loans that are transferred from non-performing loans to restructured loans are presented in the transfers to other categories of loans under follow-up lines. (**) After taking the collaterals of the loans amounting TL 32,026, that are classified in group IV, as from December 31, 2017 into account, the Parent Bank had recorded provision over the remaining amount. Uncollectible loans and other receivables are collected through liquidation of collaterals and legal follow-up.