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.) 406 Part III: Financial Highlights and Assessment of Risk Management VIII. FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES Current Period – December 31, 2018 Carrying Value Fair Value Financial Assets: Receivables from Interbank Money Markets 6,839 6,839 Banks 6,704,108 6,704,108 Financial Assets at Fair Value through Other Comprehensive Income 10,872,434 10,872,434 Assets Measured at Amortised Cost 39,980,510 36,328,383 Loans 228,650,201 225,023,936 Financial Liabilities: Bank Deposits 7,064,493 7,064,493 Other Deposits 175,411,216 175,137,004 Funds Borrowed 45,432,857 45,322,174 Marketable Securities 22,772,491 22,685,896 Subordinated Loans 13,022,023 13,103,514 Prior Period – December 31, 2017 Carrying Value Fair Value Financial Assets: Receivables from Interbank Money Markets 1,659,062 1,659,062 Banks 13,323,799 13,323,799 Available-for-Sale Financial Assets 14,570,384 14,570,384 Held-to-Maturity Investments 16,766,071 16,466,094 Loans 186,548,784 188,124,330 Financial Leasing Receivables 1,880,200 1,880,200 Factoring Receivables 2,192,302 2,192,302 Financial Liabilities: Bank Deposits 9,779,391 9,779,391 Other Deposits 148,208,475 148,014,699 Funds Borrowed 31,387,788 31,362,999 Securities Issued 19,870,759 19,672,545 Subordinated Loans 5,917,137 5,837,524 Miscellaneous Payables 7,333,030 7,333,030 Financial assets at fair value through other comprehensive income assets and measured at amortised cost are derived from market prices or in case of absence of such prices they are derived from prices of other marketable securities, whose interest rate, maturity date and other conditions are similar to securities held. Fair value of loans are calculated by discounting future cash flows with the use of current market interest rates.