VKF_FRAE_2017

395 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.) Deferred tax charge arising from temporary differences, tax losses and unused tax credits Sources of deferred tax benefit/charge Current Period Prior Period Arising from Origination/ (Reversal) of Deductible Temporary Differences (48,316) 26,473 Arising from (Origination)/ Reversal of Taxable Temporary Differences (112,056) (8,919) Arising from Origination/ (Reversal) of Tax Losses - - Arising from Tax Rate Change - - Total (160,372) 17,554 The table of the tax provision reconciliation related with the group for the years December 31, 2017 and December 31, 2016 is as below. Current Period Prior Period Profit before tax 4,957,892 3,395,524 Additions 1,646,277 1,090,863 Reductions (1,517,989) (172,535) Other (985,237) (694,457) Basis 4,166,181 3,619,395 Corporate tax rate %20 (*) 20% Tax calculated 804,637 723,879 Other corrections 187,390 (31,397) Tax expense 992,027 692,482 (*) Different tax rates are used in our subsidiary operating abroad. 12. Net profit and loss Any further explanation on operating results needed for a proper understanding of the Bank’s performance Group has incurred TL 22,045,179 interest income and TL 13,073,305 interest expense, also incurred TL 1,235,550 amount of net fee and commission income from its ordinary banking operations (December 31, 2016: TL 16,964,189 interest income, TL 9,727,956 interest expense, TL 912,483 net fee and commission income). Any changes in estimations, that might have a material effect on current and subsequent period, is indicated None. 13. Income/loss related to non-controlling interest Current Period Prior Period Income/(losses) related to non-controlling interest 84,914 2,528 14. Information related to the sub-accounts which constitute at least 20% of other items, in case of the components of other items in the income statement exceeding 10% of the group total Other fees and commission income of the Group mainly consist of credit card fees and commissions, money transfer commissions, research fees. Other fees and commission expenses of the Group mainly consist of credit card fees and commissions, commission paid for funds borrowed from foreign banks.