VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 211 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.) Major financial statement items according to business lines: Current Period Retail Banking Corporate Banking Investment Banking Other Total Operations OPERATING INCOME/ EXPENSES Interest Income 7,140,354 17,240,831 9,568,577 4,055 33,953,817 Interest income from loans 7,140,354 17,240,831 2,950,435 - 27,331,620 Interest income from reserve deposits - - 389,604 - 389,604 Interest income from securities portfolio - - 6,032,692 - 6,032,692 Interest income from banks - - 177,189 - 177,189 Interest income from money market transactions - - 18,657 - 18,657 Finance Lease Income - - - - - Other interest income - - - 4,055 4,055 Interest Expense 8,299,144 6,841,965 7,721,730 250,291 23,113,130 Interest expense on deposits 8,299,144 6,805,001 558,146 - 15,662,291 Interest expense on funds borrowed - 36,964 1,181,599 - 1,218,563 Interest expense on money market transactions - - 3,525,739 - 3,525,739 Interest expense on securities issued - - 2,003,259 - 2,003,259 Other interest expenses - - 452,987 250,291 703,278 Net Interest Income (1,158,790) 10,398,866 1,846,847 (246,236) 10,840,687 Net Fees and Commissions Income 737,963 1,321,767 233,480 - 2,293,210 Trading Income/ Losses (Net) - - 643,635 - 643,635 Dividend Income - - 129,624 - 129,624 Other Income (*) - - - 2,003,613 2,003,613 Allowance for Expected Credit Losses 675,894 4,190,284 17,327 - 4,883,505 Other Expenses (**) - - - 5,873,337 5,873,337 Profit Before Taxes (1,096,721) 7,530,349 2,836,259 (4,115,960) 5,153,927 Provision for taxes (999,605) Net Profit/ Loss 4,154,322 SEGMENT ASSETS Securities Portfolio - - 49,054,049 - 49,054,049 Derivative Financial Assets Held for Trading Purpose - - 4,410,709 - 4,410,709 Banks and Receivables From Money Markets - - 5,018,593 - 5,018,593 Investments in Associates and Subsidiaries - - 3,051,217 - 3,051,217 Loans and Receivables 51,664,996 122,336,326 47,545,195 - 221,546,517 Other Assets - - 36,072,874 12,201,682 48,274,556 TOTAL ASSETS 51,664,996 122,336,326 145,152,637 12,201,682 331,355,641 SEGMENT LIABILITIES Deposits 87,822,090 84,521,273 7,064,544 - 179,407,907 Derivative Financial Liabilities Held for Trading Purpose - - 2,549,177 - 2,549,177 Interbank Money Market Takings - - 28,723,737 - 28,723,737 Funds Borrowed - 3,089,366 38,260,470 - 41,349,836 Securities Issued - - 22,347,064 - 22,347,064 Other Liabilities - - 13,025,077 12,555,430 25,580,507 Provisions and Tax Liabilities - - - 3,047,223 3,047,223 Equity - - - 28,350,190 28,350,190 TOTAL LIABILITIES AND EQUITY 87,822,090 87,610,639 111,970,069 43,952,843 331,355,641 (*) TL 933,910 amount of TL 2,003,613 shown in other income line consists of rejecting reserves from previous periods, TL 758,836 reversal of impairment TL 191,650 of income from sale of Bank’s assets, TL 36,269 from communications income and remaining, TL 1,671 from leasing income, TL 81,277 of other income. (**) TL 2,191,782 amount of TL 5,873,337 shown in other expenses line consists of personnel expenses, TL 2,208,487 of other operating expenses, TL 184,660 of depreciation expenses, TL 276,496 of dividend reserves expenses to be given to personnel, TL 197,864 of Savings Deposit Insurance Fund (SDIF) expenses, TL 194,440 of taxes and funds expenses, and the remaining TL 619,608 of other expenses.