VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 453 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.) Group III Group IV Group V Prior Period - December 31, 2017 Loans and receivables with limited collectability Loans and receivables with doubtful collectability Uncollectible loans and receivables Balance at the beginning of the period 946,968 1,107,117 4,649,298 Additions (+) 2,847,948 148,142 220,657 Transfers from other categories of loans under follow-up (+) - 2,515,964 2,240,565 Transfers to other categories of loans under follow-up (-) (*) 2,692,529 2,556,278 119,519 Collections (-) 338,335 340,677 699,155 Write-offs (-) - - 4,054 Corporate and commercial loans - - 4,054 Retail loans - - - Credit cards - - - Other - - - Currency differences - - 17,074 Balance at the end of the period 764,052 874,268 6,304,866 Specific provisions (-) (**) 153,441 430,333 6,253,158 Net balance on balance sheet 610,611 443,935 51,708 (*) Loans that are transferred from non-performing loans to restructured loans are presented in the transfers to other categories of loans under follow-up lines. (**) After taking the colleterals of the loans amounting TL 32,026, that are classified in group IV, as from December 31, 2017 into account, the Parent Bank had recorded provision over the remaining amount.  Uncollectible loans and other receivables are collected through liquidation of collaterals and legal follow-up. Information on non-performing loans and other receivables in foreign currencies Group III Group IV Group V Current Period - December 31, 2018 Loans With Limited Collectability Loans With Doubtful Collectability Uncollectible Loans Balance at the end of the period 274,287 155,259 831,298 Specific provision (-) 134,690 73,129 716,577 Net balance on balance sheet 139,597 82,130 114,721 Group III Group IV Group V Prior Period - December 31, 2017 Loans and receivables with limited collectability Loans and receivables with doubtful collectability Uncollectible loans and receivables Balance at the end of the period 43,425 12,519 581,510 Specific provision (-) 9,094 7,242 540,597 Net balance on balance sheet 34,331 5,277 40,913 Non-performing loans due to foreign currency denominated loans provided by the Parent Bank or domestic financial subsidiaries are followed in TL accounts, while non-performing loans provided by subsidiaries in abroad are followed in foreign currency accounts.