VKF_FRAE_2017

383 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.) Actuarial assumptions used in valuation of Non Transferable Benefits based on IAS 19 are as follows: Discount Rates Current Period Previous Period Benefits Transferable to SSI 9.80% 9.80% Non Transferable Benefits 2.50% 2.50% Distribution of total assets of the Retirement Fund as of December 31, 2017 and December 31, 2016 is presented below: Current Period Previous Period Bank placements 2,290,956 2,210,265 Government Bonds and Treasury Bill, Fund and Accrual Interest Income 362,512 110,880 Tangible assets* 2,517,925 1,750,695 Other 189,158 227,822 Total 5,360,551 4,299,662 (*) The Tangible assets value indicates all the stocks’ and real estate properties’ market values, as of December, 31, 2017. Provision for currency exchange loss on foreign currency indexed loans Current Period Previous Period Provision for currency exchange loss on foreign currency indexed loans 10,253 297 The Group has recorded provision amounting to TL 10,253 (December 31, 2016: TL 297) for foreign exchange losses on principal amounts of foreign currency indexed loans and reflected the related foreign exchange loss amount in the financial statements by offsetting from related loans. Provisions for non-cash loans that are not indemnified and not converted into cash As of December 31, 2017, the Parent Bank has recorded TL 75,942 (December 31, 2016: TL 59,816) as provisions for non-cash loans that are not indemnified or converted into cash. Information on insurance technical provisions Current Period Prior Period Unearned Premium Reserves 961,880 791,429 Outstanding Claims Reserves 1,353,675 1,232,257 Life Mathematical Reserves 304,770 273,162 Other 25,193 21,497 Total 2,645,518 2,318,345 Information on other provisions Information on other provisions exceeding 10% of total provisions Current Period Prior period Provisions for credits 3,207 184,902 Specific provisions for non-cash loans 75,942 59,816 Provision for cheques 5,871 7,662 Provisions for lawsuits against the Bank 79,112 66,959 Provisions for credit card promotions 9,768 9,595 Other provisions 566,592 52,976 Total 740,492 381,910