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.) 392 Part III: Financial Highlights and Assessment of Risk Management Foreign exchange risk management policy Risk policy of the Parent Bank is based on the transactions within the limits and keeping the currency position well-balanced. In the light of the national legislations and international applications, the Parent Bank has established a foreign currency risk management policy that enables the Group to take position between lower and upper limits determined in respect of the current equity profile. Speculative position is not held by the Parent Bank. The effective exchange rates at the date of balance sheet and for the last five working days of the period announced by the Parent Bank in TL are as follows: US Dollar Euro The Bank’s foreign currency purchase rate at the balance sheet date 5.2800 6.0387 Foreign currency purchase rates for the days before balance sheet date; Day 1 5.2729 6.0467 Day 2 5.2868 6.0272 Day 3 5.2798 6.0140 Day 4 5.3022 6.0258 Day 5 5.2966 6.0518 US Dollar Euro Last 30-days arithmetical average rate 5.3048 6.0348