VKF_FRAE_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.) PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 384 VakıfBank Annual Report 2017 Information on provision for possible risks The Parent Bank recognized free provision in the current year amounting to TL 500,000 in line with the conservatism principle considering the circumstances that may arise from possible changes in the economy and financial markets. 8. Taxation Current Taxes As at and for the year ended December 31, 2017, the tax liability of the Group is amounting to TL 323,837 (December 31, 2016: TL 157,549). Information on taxes payable Current Period Prior Period Corporate taxes payable 323,837 157,549 Taxation on securities 160,257 151,546 Capital gains tax on property 3,493 2,676 Banking and Insurance Transaction Tax (BITT) 124,488 92,730 Taxes on foreign exchange transactions - - Value added tax payable 6,100 5,937 Other 59,620 49,051 Total 677,795 459,489 Information on premiums payable Current Period Prior Period Social security premiums- employee share 1,407 1,000 Social security premiums- employer share 4,488 3,689 Bank pension fund premium- employee share - - Bank pension fund premium- employer share 32 25 Pension fund membership fees and provisions- employee share - - Pension fund membership fees and provisions- employer share 7 - Unemployment insurance- employee share 918 763 Unemployment insurance- employer share 2,106 1,768 Other 50 29 Total 9,008 7,274 Information on deferred tax liabilities Information on deferred tax liabilities is presented in disclosure 15 of information and disclosures related to assets. 9. Information on payables for assets held for resale and tangible assets related to discounted activities None.  10. Information on subordinated loans The Parent Bank has issued bond having the secondary subordinated loan quality to be sold to non-resident natural and legal persons. The bond has been issued at the nominal value of US Dollar 500 million with the maturity of 10 years and 6.0% coupon rate. In addition to the bond issued on November 1, 2012, on December 3, 2012 the Parent Bank has realized second trance at nominal value of US Dollar 400 million, has the same due date and maturity of 10 years and 5.5% coupon rate.