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.) 408 Part III: Financial Highlights and Assessment of Risk Management Prior Period December 31, 2017 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit/loss: Financial assets held for trading purpose: 13,048 2,063,175 - 2,076,223 Debt securities 6,729 116,924 - 123,653 Derivative financial assets held for trading purpose - 1,946,251 - 1,946,251 Investment funds 5,380 - - 5,380 Equity securities 939 - - 939 Available-for-sale financial assets 11,554,994 3,015,375 15 14,570,384 Equity securities - 43,355 15 43,370 Debt securities 11,554,994 2,972,020 - 14,527,014 Investments in associates and subsidiaries 310,918 - 291,653 (*) 602,571 Total Financial Assets 11,878,960 5,078,550 291,668 17,249,178 Financial liabilities at fair value through profit/loss: Derivative financial liabilities held for trading purpose - (1,180,542) - (1,180,542) Total Financial Liabilities - (1,180,542) - (1,180,542) (*) This amount consist of fair value of the affiliates and subsidiaries determined by independent valuation companies. The reconciliation from the beginning balances to the ending balances for fair value measurements in Level 3 of the fair value hierarchy as at and for the year ended December 31, 2018 is as follows: Current Period – December 31, 2018 Level 3 Balance at the beginning of the year 291,668 Total gains or losses for the year recognized in profit or loss - Total gains or losses for the year recognized under equity 500,040 Balance at the end of the year 791,708 Prior Period – December 31, 2017 Level 3 Balance at the beginning of the year 298,720 Total gains or losses for the year recognized in profit or loss - Total gains or losses for the year recognized under equity (7,052) Balance at the end of the year 291,668