VKF_FRAE_2018_uyg11

174 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.) Prior Period - December 31, 2017 Amount Amount as per the regulation before 1/1/2014* 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 28,831,847 - Total Risk Weighted Amounts 185,800,511 - Capital Adequacy Ratios Core Capital Adequacy Ratio (%) 12.33 - Tier 1 Capital Adequacy Ratio (%) 12.31 - Capital Adequacy Ratio (%) 15.52 - BUFFERS Total buffer requirement 1.255 - Capital conservation buffer requirement (%) 1.250 - Bank specific counter-cyclical buffer requirement (%) 0.005 - Systemically important bank buffer requirement (%) (**) - - 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 (%) 7.83 - 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) 1,885,493 - Up to 1.25% of total risk-weighted amount of general reserves for receivables where the standard approach used 2,136,162 - 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.