VKF_FRAE_2017

397 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.) VI. INFORMATION AND DISCLOSURES ON STATEMENT OF CASH FLOWS 1. Disclosures for “other” items in statement of cash flows and effect of change in foreign currency rates cash and cash equivalents “Other” item under the “operating profit before changes in operating assets and liabilities” amounting to TL (2,718,309) (December 31, 2016: TL (2,889,842)) is comprised of other operating expense in the balance sheet, fees and commission expense, and cash amount of trading profit/loss. “Net increase/decrease in other liabilities” amounting to TL 11,074,733 (December 31, 2016: TL 779,053) under “changes in operating assets and liabilities” is mainly comprised of fınd based cash inflows from repurchase agreements. “Other” balance under “net cash flow from investing activities” amounting to TL (59,102) (December 31, 2016: TL (56,519)) is comprised of purchases of intangible assets. When calculating exchange rate effect on cash and cash equivalents, related assests’ high turnover rate are taken into consideration. Each exchange rate’s arithmetic average of the last five days before the report date and provision of average TL that is calculated from the difference from current period’s exchange rate are reflected as an effect of exchange rate change on the cash flow statement. Except for the above-mentioned, banks that have less than three months to maturity are accepted as cash equivalents and average TL provision is calculated by difference between related operation’s per term exchange rate and current period’s exchange rate. As of December 31, 2017 impact of the exchange rate change on cash and cash equivalents is TL (137,492) (December 31, 2016: TL 53,516). 2. Cash flows from acquisition of associates, subsidiaries and joint-ventures There is not any cash flow that is related with Bank’s subsidiaries in the current and previous periods. 3. Cash flows from the disposal of associates, subsidiaries and joint-ventures The Parent Bank had realized the sale of its shares in Güneş Sigorta A.Ş, which amounts to TL 232, corresponding to its 500,000 number of shares in the current period. 4. Information on cash and cash equivalents Information on cash and cash equivalents at the beginning of the year Prior Period December 31, 2016 Prior Period December 31, 2015 Cash on hand 1,789,993 1,439,972 Cash in TL 1,285,044 1,162,866 Cash in foreign currency 504,949 277,106 Cash equivalents 10,631,411 7,617,155 CBRT 22,325,509 19,834,346 Banks 5,275,489 6,176,019 Receivables from money markets 5,232 6,699 Other 253,813 215,596 Loans and advances to banks having maturity of more than 3 months (97,573) (90,084) Restricted cash and cash equivalents (17,124,659) (18,518,574) Unrealized foreign exchange rate differences on cash equivalents (6,400) (6,847) Total 12,421,404 9,057,127