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 394 VakıfBank Annual Report 2017 7. Other operating expenses Current Period Prior Period Personnel costs 1,979,798 1,663,884 Reserve for employee termination benefits 49,531 30,847 Provision for deficit in pension funds - - Impairment losses on tangible assets - - Depreciation expenses on tangible assets 150,160 140,921 Impairment losses on intangible assets - 409 Amortization expenses on intangible assets 30,270 25,756 Impairment losses on assets to be disposed - 5,278 Depreciation expenses on assets to be disposed - 19,723 Impairment losses on assets held for sale - - Other operating expenses 2,413,794 1,984,578 Operational lease related expenses 258,477 232,514 Repair and maintenance expenses 68,416 52,947 Advertisement expenses 129,056 94,760 Other expenses 1,957,845 1,604,357 Loss on sale of assets 2,302 3,351 Other (*) 1,108,292 1,031,957 Total 5,734,147 4,906,704 (*) Other operating expenses amounting to TL 1,108,292 (December 31, 2016: TL 1,031,957) is comprised of provision expenses for dividends to the personnel amounting to TL 168,500 (December 31, 2016: TL 147,970), tax, fees and funds expenses amounting to TL 163,010 (December 31, 2016: TL 141,588), Saving Deposits Insurance Fund expenses amounting to TL 168,783 (December 31, 2016: TL 138,469), Compensation pensions amounting to TL 9,807 (December 31, 2016: TL 47,034), cumulative/noncumulative commission expenses amounting to TL 91,727 (December 31, 2016: TL 79,694), production commission expenses to TL 251,574 (December 31, 2016: TL 240,676) and other expenses amounting to TL 254,891 (December 31, 2016: TL 236,526) 8. Information on income/loss from discontinued and continuing operations Information and detailed tables on profit before tax from continuing operations are presented in disclosures 1-7 in this section. The Group has no discontinued operations. 9. Information on tax provision from discontinued and continuing operations Information on provision for taxes on income from continuing operations is presented in disclosure 11 in this section. The Group has no discontinued operations. 10. Information on net profit/loss from discontinued and continuing operations Information on net profit/loss from continuing operations is presented in disclosures 1-13 in this section. The Group has no discontinued operations. 11. Provision for taxes Current year taxation benefit or charge and deferred tax benefit or charge In the current period, the Group recorded a tax provision of TL 831,655 (December 31, 2016: TL 741,888) from the operating profit in accordance with the Corporate Tax Law and other laws and regulations.