VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 391 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.) Prior Period - December 31, 2017 Country RWA Calculations for Private Sector Loans in Banking Book RWA calculations for Trading Book Total Turkey 165,183,221 - 165,183,221 England 1,743,516 - 1,743,516 France 1,367,860 - 1,367,860 USA 2,098,103 - 2,098,103 Netherlands 462,605 - 462,605 Iraq 414,494 - 414,494 Niger 248,828 - 248,828 Germany 230,123 - 230,123 Austria 158,427 - 158,427 Switzerland 118,788 - 118,788 Other 4,674,859 - 4,674,859 Total 176,700,824 - 176,700,824 III. CONSOLIDATED FOREIGN CURRENCY EXCHANGE RISK Foreign exchange risk that the Parent Bank is exposed to, estimation of effects of exposures, and the limits set by the Board of Directors of the Parent Bank for the positions monitored on a daily basis The Standard Method which is also used in the legal reporting is used in measuring the currency risk of The Parent Bank. The Parent Bank’s and all consolidated financial subsidiaries’ foreign currency assets and liabilities and the forward foreign-currency transactions are taken into consideration in calculating the capital obligation for the consolidated currency risk. The net long and short positions are calculated in Turkish Lira equivalent of the each currency. The position with the biggest absolute value is determined as the base amount for the capital obligation. The capital obligation is calculated at that amount. The magnitude of hedging foreign currency debt instruments and net investment in foreign operations by using derivatives As at December 31, 2018 and December 31, 2017, the Group does not have derivative financial instruments held for risk management purpose.