VKF_FRAE_2018_uyg11

170 Part III: Financial Highlights and Assessment of Risk Management 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.) Current Period - December 31, 2018 Amount Amount as per the regulation before 1/1/2014* Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible long positions (amount above 10% threshold) of Tier 1 Capital (-) - - Mortgage servicing rights (amount above 10% threshold) of Tier 1 Capital (-) - - Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability) (-) - - Amounts exceeding 15% of Tier 1 Capital according to Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks (2nd article temporary second 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 common share capital of the entity (amount above 10% threshold) (-) - - Amounts related to mortgage servicing rights (-) - - Excess amount of deferred tax assets from temporary differences (-) - - Other Items Determined by BRSA (-) - - The amount to be deducted from common equity tier 1 capital (-) - - Total regulatory adjustments to Common equity Tier 1 577,481 Common Equity Tier 1 capital (CET1) 27,931,467 Additional Tier 1 capital: instruments 4,993,575 Premiums that are not included in Common Equity Tier 1 capital - Bank’s borrowing instruments and related issuance premium 4,993,575 Bank’s borrowing instruments and related issuance premium (Temporary Article 4) - Additional Tier 1 Capital before deductions - Deductions from Additional Tier 1 Capital - - Bank’s direct or indirect investment in Tier 1 Capital (-) - - Investments of Bank to Banks that invest in Bank’s additional equity and components of equity issued by financial institutions with compatible with Article 7 (-) - - Total of Net Long Positions of the Investments in Equity Items of Unconsolidated Banks and Financial Institutions where the Bank Owns 10% or less of the Issued Share Capital Exceeding the 10% (-) - - Unconsolidated Banks and Financial Institutions where the Bank Owns more than 10% of the Issued Share Capital (-) - - Other Items Determined by BRSA (-) - - Transition from the Core Capital to Continue to deduce Components Goodwill and other intangible assets and related deferred tax liabilities which will not deducted from Common Equity Tier 1 capital for the purposes of the first sub-paragraph of the Provisional Article 2 of the Regulation on Banks’ Own Funds (-) - - Net deferred tax asset/liability which is not deducted from Common Equity Tier 1 capital for the purposes of the sub-paragraph of the Provisional Article 2 of the Regulation on Banks’ Own Funds (-) - - The amount to be deducted from Additional Tier 1 Capital (-) - - Total Deductions from Additional Tier 1 Capital - - Total Additional Tier 1 Capital 4,993,575 - Total Tier 1 Capital (Tier 1 Capital=Common Equity+Additional Tier 1 Capital) 32,925,042 - TIER 2 CAPITAL Bank’s borrowing instruments and related issuance premium 5,010,017 - Bank’s borrowing instruments and related issuance premium (Temporary Article 4) 651,526 - Provisions (Article 8 of the Regulation on the Equity of Banks) 2,772,335 - Tier 2 Capital Before Deductions 7,782,352 - Deductions From Tier 2 Capital - Bank’s direct or indirect investment in Tier 2 Capital (-)