VKF_FRAE_2018_uyg11

188 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.) Distribution of maturity risk factors according to their outstanding maturities (*) According to their outstanding maturities Risk Classifications-Prior Period - December 31, 2017 1 month 1-3 month 3-6 month 6-12 month 1 year and over Claims on sovereigns and Central Banks 6,977,725 252,551 758,827 1,571,397 83,714,372 Claims on regional governments or local authorities 9,682 9,196 28,124 235,613 6,628,475 Claims on administrative bodies and other non- commercial undertakings 1,426 1,690 3,390 66,488 365,788 Claims on multilateral development banks 1,583 - - - - Claims on international organizations - - - - - Claims on banks and intermediary institutions 3,692,962 1,869,140 240,445 57,924 9,652,281 Claims on corporate 2,712,960 4,078,255 6,484,943 12,519,643 60,679,261 Claims included in the regulatory retail portfolios 592,658 1,398,041 2,388,791 5,872,574 39,775,383 Claims secured by residential property 715,960 1,295,000 2,647,802 6,139,142 37,592,106 Past due loans - - - - 1,039,387 Higher risk categories decided by the Agency 4,083 1,105 2,265 887 212,327 Marketable securities secured by mortgages - - - - - Securitization exposures - - - - - Short-term claims and short-term corporate claims on banks and intermediary institutions - - - - - Undertakings for collective investments in mutual funds - - - - 263 Stock Investments - - - - 2,606,386 Other claims - - - - 8,395,667 TOTAL 14,709,039 8,904,978 12,554,587 26,463,668 250,661,696 (*) Risk amounts are given before credit risk mitigation, after multiplied by credit risk conversion ratio. Risk balances according to risk weights Risk Weights Current Period - December 31, 2018 0% 10% 20% 35% 50% 75% 100% 150% 200% 250% 1250% Deductions from the shareholders’ equity Pre-Amount of Credit Risk Mitigation 117,650,571 - 8,152,490 24,610,021 71,969,320 52,456,719 135,929,463 190,778 - - - 420,167 Amount after Credit Risk Mitigation 114,502,066 - 7,902,337 24,610,021 66,279,733 52,839,083 144,635,344 190,778 - - - 420,167 Risk Weights Prior Period - December 31, 2017 0% 10% 20% 35% 50% 75% 100% 150% 200% 250% 1250% Deductions from the shareholders’ equity Pre-Amount of Credit Risk Mitigation 85,170,351 - 5,735,499 23,271,806 44,311,654 50,027,447 104,556,544 220,667 - - - 395,302 Amount after Credit Risk Mitigation 88,234,001 - 4,128,073 23,271,806 46,849,682 49,693,331 100,896,408 220,667 - - - 395,302