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.) 386 Part III: Financial Highlights and Assessment of Risk Management Distribution of maturity risk factors according to their outstanding maturities (*) According to their outstanding maturities Risk Classifications-Prior Period December 31,2017 1 month 1-3 month 3-6 month 6-12 month 1 year and over Claims on sovereigns and Central Banks 7,428,731 252,551 759,428 1,577,698 84,558,142 Claims on regional governments or local authorities 9,682 9,196 28,124 235,743 6,628,475 Claims on administrative bodies and other non- commercial undertakings 1,426 1,690 3,390 66,624 365,788 Claims on multilateral development banks 1,583 - - - 18,032 Claims on international organizations - - - - - Claims on banks and intermediary institutions 4,338,096 2,725,079 590,843 58,677 9,796,127 Claims on corporate 3,892,114 4,532,885 7,287,286 13,925,617 63,993,010 Claims included in the regulatory retail portfolios 598,470 1,420,475 2,438,990 6,355,744 40,016,687 Claims secured by residential property 715,960 1,295,000 2,647,802 6,139,142 37,592,107 Past due loans - - - - 1,106,254 Higher risk categories decided by the Agency 4,083 1,105 2,265 887 274,922 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 - - - - 263 Stock Investments 3 - - - 707,495 Other claims 26,775 - - - 10,349,116 TOTAL 17,016,923 10,237,981 13,758,128 28,360,132 255,406,418 (*) Risk amounts are given before credit risk mitigation, after multiplied by credit risk conversion ratio. Risk balances according to risk weights Risk Weights Current Period – December 31, 2018 0% 10% 20% 35% 50% 75% 100% 150% 200% 250% 1250% Deductions from the shareholders’ equity Pre-Amount of Credit Risk Mitigation 116,443,801 - 8,315,323 24,615,689 68,022,245 53,595,912 154,907,585 190,778 - - - 506,659 Amount after Credit Risk Mitigation 119,597,328 - 8,561,979 24,615,689 73,711,832 53,212,894 146,200,833 190,778 - - - 506,659 Risk Weights Prior Period December 31, 2017 0% 10% 20% 35% 50% 75% 100% 150% 200% 250% 1250% Deductions from the shareholders’ equity Pre-Amount of Credit Risk Mitigation 86,314,704 - 6,519,704 23,271,806 46,149,416 50,830,366 111,410,324 220,666 - 62,596 - 443,678 Amount after Credit Risk Mitigation 89,381,822 - 4,909,786 23,271,806 48,686,466 50,496,251 107,750,188 220,667 - 62,596 - 443,678