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.) 410 Part III: Financial Highlights and Assessment of Risk Management Major financial statement items according to business lines: Current Period – December 31, 2018 Retail Banking Corporate Banking Investment Banking Other Total Operations OPERATING INCOME/ EXPENSES Interest Income 7,140,628 17,997,327 9,795,120 24,168 34,957,243 Interest income from loans 7,140,628 17,797,268 2,964,627 - 27,902,523 Interest income from reserve deposits - - 389,604 - 389,604 Interest income from securities portfolio - - 6,090,312 - 6,090,312 Interest income from banks - - 329,852 - 329,852 Interest income from money market transactions - - 20,725 - 20,725 Finance lease income - 200,059 - - 200,059 Other interest income - - - 24,168 24,168 Interest Expense 8,341,245 7,055,595 7,863,112 269,785 23,529,737 Interest expense on deposits 8,341,245 6,637,420 558,753 - 15,537,418 Interest expense on funds borrowed - 418,175 1,181,599 - 1,599,774 Interest expense on money market transactions - - 3,557,193 - 3,557,193 Interest expense on securities issued - - 2,094,967 - 2,094,967 Other interest expenses - - 470,600 269,785 740,385 Net Interest Income (1,200,617) 10,941,732 1,932,008 (245,617) 11,427,506 Net Fees and Commissions Income 737,963 1,179,605 233,480 - 2,151,048 Trading Income/ Losses (Net) - - 822,830 - 822,830 Dividend Income - - 50,011 - 50,011 Other Income (*) - - - 3,945,443 3,945,443 Provision For Losses on Loans and Other Receivables 687,608 4,338,334 17,327 - 5,043,269 Other Expenses (**) - - - 7,720,372 7,720,372 Income/Loss From Investments Under Equity Accounting - - 56,576 - 56,576 Profit Before Taxes (1,150,262) 7,783,003 3,077,578 (4,020,546) 5,689,773 Provision for taxes (1,085,295) Net Profit/ Loss 4,604,478 SEGMENT ASSETS Securities Portfolio - - 51,077,449 - 51,077,449 Derivative Financial Assets Held for Trading Purpose - - 4,413,383 - 4,413,383 Banks and Receivables From Money Markets - - 6,710,947 - 6,710,947 Investments in Associates and Subsidiaries - - 1,125,289 - 1,125,289 Loans and Receivables 51,672,411 129,189,702 47,788,088 - 228,650,201 Other Assets - - 36,072,874 16,588,317 52,661,191 TOTAL ASSETS 51,672,411 129,189,702 147,188,030 16,588,317 344,638,460 SEGMENT LIABILITIES Deposits 92,194,464 83,216,752 7,064,493 - 182,475,709 Derivative Financial Liabilities Held for Trading Purpose - - 2,552,248 - 2,552,248 Interbank Money Market Takings - - 29,123,872 - 29,123,872 Funds Borrowed - 3,089,366 42,343,491 - 45,432,857 Securities Issued - - 22,772,491 - 22,772,491 Other Liabilities - 903 13,025,077 13,432,010 26,457,990 Provisions and Tax Liabilities - - - 6,717,540 6,717,540 Equity - - - 29,105,753 29,105,753 TOTAL LIABILITIES AND EQUITY 92,194,464 86,307,021 116,881,672 49,255,303 344,638,460 (*) TL 1,346,870 amount of 3,945,443 shown in other income line consists of earnings from insurance premiums, TL 938,450 rejecting dividend reserves from previous periods, TL801,200 from the reversal of loan reserves for the first and second stage, TL 210,465 of income from sale of Bank’s assets, TL 36,269 from communication income, TL 192,039 from leasing income, TL 165,143 individual pension activities and remaining TL 255,007 of other income. (**) TL 2,452,360 amount of 7,720,372 shown in other expense line consists of personnel expenses, TL 3,140,934 of other operating expenses, TL 209,555 of depraciation expenses, TL 276,496 of dividend reserve expenses to be given to personnel, TL 197,864 of Saving Deposit Insurance Fund (SDIF) expenses, TL 369,491 of taxes, duties, charges and funds expenses, TL 13,107 of pension compensation payments, TL 96,101 of cumulative/non-cumulative commission expenses, TL 240,480 of production commission expenses and remaining 723,984 of other expenses.