VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 319 Page No: SECTION ONE General Information I. History of the Parent Bank including its incorporation date, initial legal status, amendments to legal status 320 II. The Parent Bank’s shareholder structure, management and internal audit, direct and indirect shareholders, change in shareholder structure during the period and information on Bank’s risk group 320-321 III. Information on the Parent Bank’s chairman and members of the board of directors, audit committee members, general manager, assistant general managers and their shares in the Bank 322-323 IV. Information on the Parent Bank’s qualified shareholders 323 V. Information about the services and nature of activities of the Parent Bank 324 VI. Differences between the communique on preparation of consolidated financial statements of banks and Turkish accounting standards and short explanatıon about the institutions subject to line-by-line method or proportional consolidation and institutions which are deducted from equity or not included in these three methods 325 VII Current of likely actual or legal barriers to immediate transfer of equity or repayment of debts between the Parent Bank and its subsidiaries 325 SECTION TWO Consolidated Financial Statements I. Consolidated balance sheet 326-329 II. Consolidated off-balance sheet items 330-331 III. Consolidated statement of profit or loss 332-333 IV. Consolidated statement of profit and loss and other comprehensive income 334-335 V. Consolidated statement of changes in shareholders’ equity 336-337 VI. Consolidated statement of cash flows 338-339 VII. Consolidated statement profit distribution 340-341 SECTION THREE Accounting Policies I. Basis of presentation 342-343 II. Strategy for the use of financial instruments and information on foreign currency transactions 343-344 III. Information on associates that are consolidated and subsidiaries that are accounted according to equity method 344-346 IV. Information on forwards, options and other derivative transactions 346 V. Information on interest income and expenses 346 VI. Information on fees and commissions 347 VII. Information on financial assets 347-348 VIII. Information on expected loss provision 349-351 IX. Information on offsetting of financial instruments 352 X. Information on sales and repurchase agreements and securities lending 352 XI. Information on assets held for sale and discontinued operations and related liabilities 352 XII. Information on goodwill and other intangible assets 352 XIII. Information on tangible assets 353 XIV. Information on leasing activities 353-354 XV. Information on provisions, contingent assets and liabilities 354 XVI. Information on obligations of the Group concerning employee rights 354-356 XVII. Information on taxation 356-358 XVIII. Information on cash and cash equivalents 358 XIX Additional information on borrowings 358 XX. Information on issuance of equity securities 358 XXI. Information on confirmed bills of exchange and acceptances 358 XXII. Information on government incentives 359 XXIII. Information on segment reporting 359 XXIV. Other matters 359-364 XXV. Explanations on prior period accounting policies not valid for the current period 364-365 SECTION FOUR Information Related to the Consolidated Financial Position and Risk Management I. Information consolidated equity items 366-376 II. Consolidated credit risk 376-391 III. Consolidated foreign currency exchange risk 391-394 IV. Consolidated interest rate risk 395-397 V. Consolidated stock position risk 398-399 VI. Consolidated liquidity risk and liquidity coverage ratio 400-403 VII. Consolidated leverage ratio 404-405 VIII. Fair values of financial assets and liabilities 406-408 IX. Transactions carried out on behalf of customers, items held in trust 409 X. Consolidated segment reporting 409-411 XI. Information on risk management 412-438 SECTION FIVE Disclosures and Footnotes on Consolidated Financial Statements I. Information and disclosures related to consolidated assets 439-475 II. Information and disclosures related to consolidated liabilities 475-489 III. Information and disclosures related to consolidated off-balance sheet items 489-495 IV. Information and disclosures related to consolidated statement of income 495-504 V. Information and disclosures related to statement of changes in shareholders’ equity 505-506 VI. Information and disclosures on statement of cash flows 506-508 VII. Information and disclosures related to the bank’s risk group 508-510 VIII. Information on domestic, foreign and off-shore branches or investments and foreign representative offices 511 SECTION SIX Other Disclosures and Footnotes I. Other disclosures on the Parent Bank’s activity 511 II. Information on the Parent Bank’s rating given by international credit rating institutions 512 III. Significant events and matters subsequent to balance sheet date that are not resulted 513 SECTION SEVEN Independent Auditors’ Audit Report I. Information on Independent auditor’s report 513 II. Explanations and footnotes prepared by independent auditor 513