VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 379 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.) Information on expected loss provisions for loans: Current Period - 31 December 2018 Stage 1 Stage 2 Stage 3 Provision balance at the beginning (1 January 2018) 1,498,660 465,073 6,157,549 Additional provisions during the period 586,350 1,346,280 2,390,669 Disposals during the period (-) 338,991 107,992 380,716 Deleted from assets (-) (*) - 385,709 1,587 Transfers to stage 1 39,450 (39,262) (188) Transfers to stage 2 (115,773) 142,901 (27,128) Transfers to stage 3 (33,454) (94,711) 128,165 Provision Balance at the end of the Period 1,636,242 1,326,580 8,266,764 (*) The Bank write-off the provision from 2nd level provisions amounting TL 385,709 allocated for the risk of the loan granted to Ojer Telekomünikasyon A.Ş. (OTAŞ) within the framework of syndication participation, which is done by pledging share collateral from other local and foreign banks. The general provision for credit risk amounts to TL 3,126,095 (December 31, 2017: TL 1,885,493). Risk Classifications: Current Period Risk Amount (**) Average Risk Amount (*)(**) Claims on sovereigns and Central Banks 135,425,480 111,234,678 Claims on regional governments or local authorities 9,886,540 8,913,129 Claims on administrative bodies and other non-commercial undertakings 551,034 549,498 Claims on multilateral development banks 24,044 43,945 Claims on international organizations - - Claims on banks and intermediary institutions 26,868,933 26,039,472 Claims on corporate 128,214,407 112,426,147 Claims included in the regulatory retail portfolios 53,595,912 54,054,342 Claims secured by residential property 52,880,936 51,724,138 Past due loans 2,862,544 2,144,851 Higher risk categories decided by the Agency 168,054 385,111 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 1,395 2,989 Stock Investments 1,198,533 965,066 Other claims 14,413,521 10,567,900 (*) Before reducing the credit risk, the rate of the post credit conversion is given. (**) Average risk amount is calculated based on the arithmetic average of the monthly risk amounts after conversion for January-December 2018 period.