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 398 VakıfBank Annual Report 2017 Information on cash and cash equivalents at the end of the year Current Period December 31, 2017 Prior Period December 31, 2016 Cash on hand 1,990,874 1,789,993 Cash in TL 1,406,685 1,285,044 Cash in foreign currency 584,189 504,949 Cash equivalents 19,771,933 10,631,411 CBT - Unrestricted demand deposit 26,277,100 22,325,509 Banks 13,323,799 5,275,489 Receivables from money markets 1,659,062 5,232 Other 388,272 253,813 Loans and advances to banks having maturity of more than 3 months (639,854) (97,573) Restricted cash and cash equivalents (21,221,265) (17,124,659) Unrealized foreign exchange rate differences on cash equivalents (15,181) (6,400) Total 21,762,807 12,421,404 5. Management comment on restricted cash and cash equivalents due to legal requirements or other reasons taking materiality principle into account Reserve requirements at CBRT amounting to TL 20,881,397 as at December 31, 2017 (December 31, 2016: TL 16,815,760) has not been included in cash and cash equivalents. Deposits of the Group amounting to TL 339,868 (December 31, 2016: TL 308,711) is blocked due to securitization loans and other ordinary operations of the Group. VII. INFORMATION AND DISCLOSURES RELATED TO THE PARENT BANK’S RISK GROUP 1. Information on the volume of transactions with the Parent Bank’s risk group, lending and deposits outstanding at year end and income and expenses in the current year Information on loans and other receivables held by Parent Bank’s risk group Current Period Associates and Subsidiaries and Joint-Ventures Bank’s Direct and Indirect Shareholders Other Components in Risk Group Cash Non-Cash Cash Non-Cash Cash Non-Cash Loans and other receivables Balance at the beginning of the year 10 1,024,338 - 31,720 37,507 22,446 Balance at the end of the year 17 1,190,628 - 38,243 18,111 34,799 Interest and commission income - 912 - 38 - 78 Prior Period Associates and Subsidiaries and Joint-Ventures Bank’s Direct and Indirect Shareholders Other Components in Risk Group Cash Non-Cash Cash Non-Cash Cash Non-Cash Loans and other receivables Balance at the beginning of the year 1,071 811,349 - 28,550 822 15,858 Balance at the end of the year 10 1,024,338 - 31,720 37,507 22,446 Interest and commission income 8 651 - 32 424 105