VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 171 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* Investments of Bank to Banks that invest on Bank’s Tier 2 and components of equity issued by Financial Institutions with the conditions declared in Article 8 - - 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% threshold of Common Equity Tier 1 Capital (-) - - The Total of Net Long Position of the Direct or Indirect Investments in Additional Core Capital and Tier 2 Capital of Unconsolidated Banks and Financial Institutions where the Bank Owns 10% or more of the Issued Share Capital Exceeding the 10% Threshold of Tier 1 Capital - - Other Items Determined by BRSA (-) - - Total Deductions From Tier 2 Capital Tier 2 Capital 7,782,352 - Total Capital (The sum of Tier 1 Capital and Tier 2 Capital) 40,707,394 - The sum of Tier 1 Capital and Tier 2 Capital (Total Capital) - - Loan granted to Customer against the Articles 50 and 51 of the Banking Law - - Net Book Values of Immovables Exceeding 50% of the Equity and of Assets Acquired against Overdue Receivables and Held for Sale as per the Article 57 of the Banking Law but Retained More Than Five Years (-) - - Other accounts to be defined by the BRSA (-) 1,444 - In transition from Total Core Capital and Supplementary Capital (the capital) to Continue to Download Components - - Portion of the total of net long positions of investments made in Common Equity items of banks and financial institutions outside the scope of consolidation where the Bank owns 10% or less of the issued common share capital exceeding 10% of Common Equity of the Bank not to be deducted from the Common Equity, Additional Tier 1 Capital, Tier 2 Capital as per the 1st clause of the Provisional Article 2 of the Regulation on the Equity of Banks (-) - - Portion of the total of net long positions of direct or indirect investments made in Additional Tier 1 and Tier 2 Capital items of banks and financial institutions outside the scope of consolidation where the Bank owns 10% or more of the issued common share capital exceeding 10% of Common Equity of the Bank not to be deducted from the Additional Tier 1 Capital and Tier 2 Capital as per the 1st clause of the Provisional Article 2 of the Regulation on the Equity of Banks (-) - - Portion of the total of net long positions of investments made in Common Equity items of banks and financial institutions outside the scope of consolidation where the Bank owns 10% or more of the issued common share capital, deferred tax assets based on temporary differences and mortgage servicing rights not deducted from Common Equity as per the 1st and 2nd Paragraph of the 2nd clause of the Provisional Article 2 of the Regulation on the Equity of Banks (-) - - TOTAL CAPITAL Total Capital 40,705,950 - Total Risk Weighted Amounts 239,541,156 - Capital Adequacy Ratios - Core Capital Adequacy Ratio (%) 11.66 - Tier 1 Capital Adequacy Ratio (%) 13.75 - Capital Adequacy Ratio (%) 16.99 - BUFFERS - Total buffer requirement (a+b+c) 1.895 - a) Capital conservation buffer requirement (%) 1.875 - b) Bank specific counter-cyclical buffer requirement (%) 0.020 - c) Systemically important banks buffer requirement (%)** 0.000 - The ratio of Additional Common Equity Tier 1 capital which will be calculated by the first paragraph of the Article 4 of Regulation on Capital Conservation and Countercyclical Capital buffers to Risk Weighted Assets (%) 7.16 - Amounts below deduction thresholds Amounts arising from the net long positions of investments made in Total Capital items of banks and financial institutions where the Bank owns 10% or less of the issued common share capital - - Amounts arising from the net long positions of investments made in Tier 1 Capital items of banks and financial institutions where the Bank owns 10% or more of the issued common share capital - - Mortgage servicing rights - - Deferred tax assets arising from temporary differences (net of related tax liability) - - Limits related to provisions considered in Tier 2 calculation General provisions for standard based receivables (before tenthousandtwentyfive limitation) 3,002,420 - Up to 1.25% of total risk-weighted amount of general reserves for receivables where the standard approach used 2,772,335 - Excess amount of total provision amount to credit risk Amount of the Internal Ratings Based Approach in accordance with the Communiqué on the Calculation - - Excess amount of total provision amount to 0.6% of risk weighted receivables of credit risk Amount of the Internal Ratings Based Approach in accordance with the Communiqué on the Calculation - - Debt instruments subjected to Article 4 (to be implemented between January 1, 2018 and January 1, 2022) - - Upper limit for Additional Tier 1 Capital subjected to temporary Article 4 - - Amounts Excess the Limits of Additional Tier 1 Capital subjected to temporary Article 4 - - Upper limit for Additional Tier 2 Capital subjected to temporary Article 4 - - Amounts Excess the Limits of Additional Tier 2 Capital subjected to temporary Article 4 - - (*) Represents the amounts taken into consideration according to transition clauses. (**) According to the “Regulations on Systemically Important Banks” 4th paragraph of Article 4, the “systemically important banks buffer requirement (%)” is to be filled by the systemically important banks that are not obligated to prepare consolidated financial statements and should be reported as zero for by the other banks.