VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 127 Page: SECTION ONE General Information I. History of the Bank including its incorporation date, initial legal status, amendments to legal status 128 II. The Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change in shareholder structure during the period and information on Bank’s risk group 128-129 III. Information on the chairman and members of the board of directors, audit committee members, general manager, assistant general managers and their shares in the Bank 129-130 IV. Information on the Bank’s qualified shareholders 130 V. Information about the services and nature of activities of the Bank 131 VI. Current or likely actual or legal barriers to immediate transfer of equity or repayment of debts between Bank and its subsidiaries 131 SECTION TWO Unconsolidated Financial Statements I. Balance sheet 132-135 II. Off-balance sheet items 136-137 III. Statement of profit or loss 138-139 IV. Statement of profit or loss and other comprehensive income 140-141 V. Statement of changes in shareholders’ equity 142-143 VI. Statement of cash flows 144-145 VII. Statement of profit distribution 146-147 SECTION THREE Accounting Policies I. Basis of presentation 148-149 II. Strategy for the use of financial instruments and information on foreign currency transactions 149-150 III. Information on affiliates and subsidiaries 150 IV. Information on forwards, options and other derivative transactions 150 V. Information on interest income and expenses 151 VI. Information on fees and commissions 151 VII. Information on financial assets and footnotes 151-153 VIII. Information on expected loss provision 153-156 IX. Information on offsetting of financial instruments 156 X. Information on sales and repurchase agreements and securities lending 156 XI. Information on assets held for sale and discontinued operations and related liabilities 156 XII. Information on goodwill and other intangible assets 157 XIII. Information on tangible assets 157 XIV. Information on leasing activities 158 XV. Information on provisions, contingent liabilities and assets 158 XVI. Information on obligations of the Bank concerning employee rights 159-160 XVII. Information on taxation 160-162 XVIII. Information on cash and cash equivalents 162 XIX. Additional information on borrowings 162-163 XX. Information on issuance of equity securities 163 XXI. Information on confirmed bills of exchange and acceptances 163 XXII. Information on government incentives 163 XXIII. Information on segment reporting 163 XXIV. Other matters 163-167 XXV. Explanations on prior period accounting policies not valid for the current period 167-168 SECTION FOUR Information Related To Financial Position and Risk Management I. Information on equity items 169-179 II. Credit risk 179-193 III. Foreign currency exchange risk 194-196 IV. Interest rate risk 197-199 V. Stock position risks 200-201 VI. Liquidity risk and liquidity coverage ratio 202-205 VII. Leverage ratio 206-207 VIII. Fair values of financial assets and liabilities 207-210 IX. Transactions carried out on behalf of customers, items held in trust 210 X. Segment reporting 210-212 XI. Information on risk management 213-238 SECTION FIVE Disclosures and Footnotes on Unconsolidated Financial Statements I. Information and disclosures related to assets 239-271 II. Information and disclosures related to liabilities 272-284 III. Information and disclosures related to off-balance sheet items 284-290 IV. Information and disclosures related to the statement of income 291-301 V. Information and disclosures related to statement of changes in shareholders’ equity 301-302 VI. Information and disclosures on statement of cash flows 302-304 VII. Information and disclosures related to the bank’s risk group 304-306 VIII. Information on domestic, foreign and off-shore branches or investments and foreign representative offices 307 SECTION SIX Other Disclosures I. Other disclosures on the Bank’s activity 307 II. Information on the Bank’s rating given by international credit rating institutions 308 III. Significant events and matters subsequent to balance sheet date that are not resulted 309 IX Significant foreign currency exchange rate fluctuations that are subsequent to reporting date 309 SECTION SEVEN Independent Auditors’ Audit Report I. Information on independent auditors’ report 310 II. Explanations and footnotes prepared by independent auditor 310