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.) 420 Part III: Financial Highlights and Assessment of Risk Management Additional disclosure related to the credit quality of assets: As per the provisions of “Regulation on the Procedures and Principles for Classification of Loans and Provisions to be Set Aside” published by BRSA, capital and interest payments, and loans unpaid within their maturity or on their due date are accepted to be overdue. Loans the collection of whose capital and interest payments are overdue more than 90 days and the loans whose debtors are decided by the Bank to have lost their credit ratings are deemed to be depreciated or loans for which provision is allocated. The Parent Bank calculates its expected loss provisions in scope of TFRS 9, as laid out in detail in Information on Expected Loss Provisions no. VIII in the Accounting Policies. Restructuring that can be applied for performing or non-performing receivables is done by changing the terms of the loan contract or by partially or completely refinancing the loan due to the financial difficulties that the borrower is facing or is likely to encounter in the payments. Breakdown of receivables in terms of geographic regions, sectors and remaining maturities Breakdown of receivables in terms of geographic regions Curret Period - December 31, 2018 Credit receivables/risks Domestic 209,453,985 European Union Countries 733,234 OECD Countries (*) - Off-Shore Banking Regions - USA, Canada 1,924,528 Other 16,638,732 Toplam 228,750,479 (*) OECD Countries other than EU countries, USA and Canada. Prior Period - December 31, 2017 Credit receivables/risks Domestic 179,159,737 European Union Countries 538,912 OECD Countries (*) - Off-Shore Banking Regions - USA, Canada 1,801,673 Other 8,014,710 Toplam 189,515,032 (*) OECD Countries other than EU countries, USA and Canada.