VKF_FRAE_2018_uyg11

CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) 320 Part III: Financial Highlights and Assessment of Risk Management SECTION ONE GENERAL INFORMATION I. HISTORY OF THE PARENT BANK INCLUDING ITS INCORPORATION DATE, INITIAL LEGAL STATUS, AMENDMENTS TO LEGAL STATUS Türkiye Vakıflar Bankası Türk Anonim Ortaklığı (“The Bank” or “The Parent Bank”) was established to operate as stated in the disclosure V of this section, under the authorization of a special law numbered 6219, called “the Law of Türkiye Vakıflar Bankası Türk Anonim Ortaklığı”, on January 11, 1954 within the framework of the authority granted to The General Directorate of the Foundations of Turkish Republic Prime Ministry (“The General Directorate of the Foundations”). The Bank’s statute has not been changed since its establishment. II. THE PARENT BANK’S SHAREHOLDERS STRUCTURE, MANAGEMENT AND INTERNAL AUDIT, DIRECT AND INDIRECT SHAREHOLDERS, CHANGE IN SHAREHOLDER STRUCTURE DURING THE PERIOD AND INFORMATION ON BANK’S RISK GROUP The shareholder having control over the shares of The Parent Bank is the General Directorate of the Foundations. As at December 31, 2018 and December 31, 2017, The Parent Bank’s paid-in capital is TL 2,500,000 divided into 250,000,000,000 shares with each has a nominal value of Kr 1. The Parent Bank’s shareholders structure as at December 31, 2018 and December 31, 2017 is stated below: Shareholders Number of Shares (100 unit) Nominal Value of the Shares – Thousands of TL Share Percentage (%) Registered foundations represented by the General Directorate of the Foundations (Group A) 1,075,058,640 1,075,058 43.00 Vakıfbank Memur ve Hizmetlileri Emekli ve Sağlık Yardım Sandığı Vakfı (Group C) 402,552,666 402,553 16.10 Registered foundations represented by the General Directorate of the Foundations (Group B) 386,224,785 386,225 15.45 Other appendant foundations (Group B) 2,673,619 2,674 0.11 Other registered foundations (Group B) 1,448,543 1,448 0.06 Other real persons and legal entities (Group C) 1,527,393 1,528 0.06 Publicly traded (Group D) 630,514,354 630,514 25.22 Total 2,500,000,000 2,500,000 100.00