VKF_FRAE_2017

399 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.) Information on deposits held by the Parent Bank’s risk group The Parent Bank’s Risk Group Associates and Subsidiaries and Joint-Ventures Bank’s Direct and Indirect Shareholders Other Components in Risk Group Current Period Prior Period Current Period Prior Period Current Period Prior Period Deposits Balance at the beginning of the year 661,402 475,233 977,319 740,156 164,132 104,508 Balance at the end of the year 884,201 661,402 1,100,243 977,319 241,646 164,132 Interest on deposits 132,348 24,678 106,934 46,267 486 288 Information on forwards, options and other derivative transactions held by the Parent Bank’s risk group None. 2. Disclosures of transactions with the Parent Bank’s risk group Relations with entities in the risk group of / or controlled by the Parent Bank regardless of the nature of relationship among the parties Transactions with the risk group are made on an arms-length basis; terms are set according to the market conditions and in compliance with the Banking Law. The branches of the Bank are agencies of Güneş Sigorta AŞ and Vakıf Emeklilik ve Hayat AŞ. Vakıf Yatırım Menkul Değerler AŞ engages with the management of the funds established by the Bank. In addition to the structure of the relationship, type of transaction, amount, and share in total transaction volume, amount of significant items, and share in all items, pricing policy and other The pricing of transactions with the risk group companies is set in compliance with the market prices. The ratio of cash and non-cash loans extended to the risk group to the overall cash and non-cash loans are 0.010% (December 31, 2016: 0.025%) and 2.462% (December 31, 2016: 2.652 %) respectively. Current Period Amount Compared with the Financial Statement Amount % Cash Loans 18,128 0.010 Non-Cash Loans 1,263,670 2.462 Deposits 2,226,090 1.409 Forward and Option Agreements - - Prior Period Amount Compared with the Financial Statement Amount % Cash Loans 37,517 0.025 Non-Cash Loans 1,078,504 2.652 Deposits 1,802,853 1.428 Forward and Option Agreements - -