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 390 VakıfBank Annual Report 2017 6. Contingent assets and liabilities Group allocates TL 5,871 as provision for lawsuits against the Group (December 31, 2016: TL 7,662). 7. Services rendered on behalf of third parties The Parent Bank acts as an investment agent for banking transactions on behalf of its customers and provides custody services. Such transactions are followed under off-balance sheet accounts. The Parent Bank’s custody services and banking transactions on behalf of individuals and corporate customers do not present a material portion. IV. INFORMATION ON DISCLOSURES RELATED TO THE CONSOLIDATED STATEMENT OF INCOME 1. Interest income Information on interest income received from loans Current Period Prior Period TL FC TL FC Short-term loans 4,818,618 214,105 4,375,361 207,352 Medium and long-term loans 10,638,423 2,507,378 7,535,971 1,880,672 Non-performing loans 137,052 - 269,572 - Premiums received from resource utilization support fund - - - - Total 15,594,093 2,721,483 12,180,904 2,088,024 Information on interest income received from banks Current Period Prior Period TL FC TL FC Central Bank of the Republic of Turkey - 6 - 198 Domestic Banks 164,088 5,711 95,516 1,851 Foreign Banks 651 40,240 342 23,274 Foreign Head Office and Branches - - - - Total 164,739 45,957 95,858 25,323 Information on interest income received from marketable securities portfolio Current Period Prior Period TL FC TL FC Financial assets held for trading 18,182 869 7,891 1,055 Financial assets where fair value change is reflected to income statement - - - - Financial assets available for sale 1,481,282 253,931 1,225,597 287,852 Investments held to maturity 1,111,569 48,705 706,281 1,463 Total 2,611,033 303,505 1,939,769 290,370 Information on interest income received from associates and subsidiaries Current Period Prior Period Interest Received from Associates and Subsidiaries - 8