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 400 VakıfBank Annual Report 2017 VIII. INFORMATION ON DOMESTIC, FOREIGN AND OFF-SHORE BRANCHES OR INVESTMENTS AND FOREIGN REPRESENTATIVE OFFICES OF THE PARENT BANK Domestic and foreign branches and representative offices Number of Branches Number of Employees Domestic Branches (*) 924 16,050 Country Foreign Representative Offices Total Assets Capital Foreign Branches 1 26 USA 10,881,965 62,370 1 16 Iraq 329,145 189,000 Off-shore Branches 1 5 Bahrain 13,839,751 - (*) Free zone branches in Turkey is included to domestic branches. Opening or closing of domestic and foreign branches and representative offices and significant changes in organizational structure During 2017, 7 new domestic branches (2016: 8 domestic branches) have been opened and 4 have been closed (2016: 4).  SECTION SIX OTHER DISCLOSURES AND FOOTNOTES I. OTHER DISCLOSURES ON THE PARENT BANK’S ACTIVITY As per the resolution of 63rd Annual General Assembly held on June 9, 2017, the net profit of year 2016 has been decided to be distributed as follows: Profit Distribution Table of Year 2016 Bank’s unconsolidated profit in its statutory financial statements 2,703,042 Deferred tax credits (19,941) Net profit of the year subject to distribution 2,683,101 Legal reserves 268,310 First Legal Reserves 134,155 Reserves allocated according to banking law and articles of association. 134,155 Net profit of the year subject to distribution 2,414,791 Gain on sale of immovable and shares of associates and subsidiaries 49,444 Extraordinary reserves 2,245,347 Dividends to shareholders 120,000