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.) 388 Part III: Financial Highlights and Assessment of Risk Management Loans Prior Period – December 31,2017 Impaired (*) Past Due (**) Value Adjustments (***) Provisions Agricultural 69,085 73,741 1,420 55,315 Farming and raising livestock 64,741 72,536 1,395 51,758 Forestry 2,258 923 20 2,093 Fishing 2,086 282 5 1,464 Manufacturing 1,628,025 662,702 18,754 1,307,257 Mining 134,821 71,292 1,641 128,422 Production 1,487,022 502,312 13,001 1,172,949 Electric, Gas, Water 6,182 89,098 4,112 5,886 Construction 801,891 580,653 12,394 707,644 Services 2,979,614 2,982,220 68,074 2,589,472 Wholesale and retail trade 2,049,107 1,114,163 25,183 1,804,680 Hotel, Food and Beverage Services 107,964 187,259 3,844 93,282 Transportation and telecommunication 405,285 759,229 13,311 346,845 Financial Institutions 23,368 15,741 203 22,498 Real estate and renting services 96,090 835,721 16,650 87,526 Self-employment services 185,072 6,922 7,555 151,398 Education services 20,029 40,977 938 19,385 Health and social services 92,699 22,208 390 63,858 Other 2,464,571 4,232,963 213,400 2,177,244 Total 7,943,186 8,532,279 314,042 6,836,932 (*) Impaired loans are composed of group three, four and five loans. ,Under the Provisions Regulation (**) Past due loans and other receivables consist of loans and other receivables that are past due up to ninety days. , Under the Provisions Regulation (***) Value adjustments represents general provisions of non-performing loans. , Under the Provisions Regulation Information on Changes in Value Adjustments and Credit Provisions Current Period December 31, 2018 Opening Balance (before TFRS 9) 31 December 2017 Remeasure- ments Opening Balance (after TFRS 9) 1 January 2018 Provisions reserved during the period Cancelations Other Adjustments (*) Closing Balance Specific provisions (stage 3) 6,836,932 (679,383) 6,157,549 3,073,899 (938,450) (26,234) 8,266,764 General provisions (stage 1-2) 1,885,493 641,898 2,527,391 1,434,767 (801,200) (34,863) 3,126,095 (*) Includes effect of currency translations differences and other provisions’ classifications. Prior Period December 31, 2017 The opening Balance Provisions amounts set aside during the period The cancelation of the provisions Other Adjustments (*) Closing Balance Specific provisions 5,532,608 2,214,490 (937,669) 27,503 6,836,932 General provisions 2,167,443 208 (280,949) (1,209) 1,885,493 (*) Includes effect of currency translations differences and other provisions’ classifications (**) The TL 500,000 which occurs under the General Provisions on the current period, has been cancelled as of December 31, 2017, and free provision was made in the same amount.