VKF_FRAE_2018_uyg11

238 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 2PP 1PP Current Period Total/Positive GI year number Ratio (%) Total Gross income 7,331,177 9,216,778 10,264,039 8,937,331 15 1,340,600 Amount subject to Operational Risk (Amount*12,5) - - - - - 16,757,496 Prior Period - December 31, 2017 2PP 1PP Current Period Total/Positive GI year number Ratio (%) Total Gross income 6,260,273 7,331,177 9,216,778 7,602,743 15 1,140,411 Amount subject to Operational Risk (Amount*12,5) - - - - - 14,255,142 6. Interest Rate Risk Related to Banking Book Bank has evaluated to Interest rate risk arising from on-balance sheet and off-balance sheet positions in banking accounts in accordance with “Regulation on Measurement and Evaluation of Interest Rate Risk in Banking Accounts with Standard Shock Method” performs and reports on these measurement based results and analyzes on weekly and monthly periods. In addition, in the Asset-Liability Management Committee meetings, the sensitivity of the active, passive and off-balance sheet items to the interest rate is evaluated taking into consideration the market developments. In line with the management of interest rate risk arising from banking accounts; Scenario analysis, gap analysis to date of re-pricing, behavioral analysis, core demand deposit level, duration and maturity mismatch metrics, option risk, base risk and yield curve risk components are followed together. Current Period - December 31, 2017 Currency Applied Shock (+/- x basis points)* Gains/Losses Gains / Shareholders’ Equity Losses/ Shareholders’ Equity 1 TRY 500/(400) (2,552,723)/2,137,321 (6.27%) / 5.25% 2 EURO 200/(200) (938,509) / 395,960 (2.31%) / 0.97% 3 USD 200/(200) 358,642 / (315,420) 0.88% / (0.77%) Total (for negative shocks) - 2217861 5.45% Total (for positive shocks) - (3,132,589) (7.70%) Prior Period - December 31, 2017 Currency Applied Shock (+/- x basis points)* Gains/Losses Gains / Shareholders’ Equity Losses/ Shareholders’ Equity 1 TRY 500/(400) (2,370,615) / 2,318,845 (8.22%) / 8.04% 2 EURO 200/(200) (537,399) / 364,920 (1.86%) / 1.27% 3 USD 200/(200) 513,644 / (536,219) 1.78% / (1.86%) Total (for negative shocks) - 2,147,546 7.45% Total (for positive shocks) - (2,394,370) (8.30%)