VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 169 CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2018 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) SECTION FOUR INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT I. INFORMATION ON EQUITY ITEMS Calculation of Equity and Capital Adequacy Standard Ratio are calculated according to “Regulation on Bank’s Capital Adequacy Assessment of the Measurement“, “Communique on Credit Risk Mitigation”,”BRSA Regulation on Bank’s Shareholder Equity”, “Regulations on Systemically Important Banks”, “Regulation on Capital Conservation and Cyclical Capital Buffer”. As of December 31, 2018 Bank’s capital adequacy ratio is 16.99% (December 31, 2017: 15.52%). Current Period - December 31, 2018 Amount Amount as per the regulation before 1/1/2014* COMMON EQUITY TIER I CAPITAL Paid-in capital to be entitled for compensation after all creditors 2,500,000 Share Premium 723,918 Reserves 17,864,763 Income recognized under equity in accordance with TAS 2,604,377 Profit 4,725,138 Current Period’s Profit 4,154,322 Prior Period’s Profit 570,816 Bonus shares from associates, subsidiaries and joint-ventures not accounted in current period’s profit 90,752 Common Equity Tier 1 Capital Before Deductions 28,508,948 Deductions from Common Equity Tier 1 Capital Valuation adjustments calculated as per the (i) item of first paragraph of Article 9 (-) - - Net loss for the prior year losses and uncovered portion of the total reserves and losses that are recognized under equity in accordance with TAS (-) 158,758 - Leasehold Improvements on Operational Leases (-) 200,571 - Goodwill netted with deferred tax liability (-) - - Other intangible assets netted with deferred tax liabilities except mortgage servicing rights (-) 218,152 218,152 Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) (-) - - Differences are not recognized at the fair value of assets and liabilities subject to hedge of cash flow risk (-) - - Communiqué Related to Principles of the amount credit risk calculated with the Internal Ratings Based Approach, total expected loss amount exceeds the total provision (-) - - Gains arising from securitization transactions (-) - - Unrealized gains and losses due to changes in own credit risk on fair valued liabilities (-) - - Defined-benefit pension fund net assets (-) - - Direct and indirect investments of the Bank in its own Common Equity (-) - - Excess amount expressed in the law (Article 56 4th paragraph) (-) - - Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible long positions, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) (-) - -