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.) 454 Part III: Financial Highlights and Assessment of Risk Management Explanation on Write-off Policy The total write-off of a financial asset in the Group is essentially a process that has become a default and does not have any expectation that it will be recovered and that these expectations are documented by legal means. Partial write-offs include the agreement that a financial asset will be repaid in a certain percentage by the debtor and the amount remaining after the payment is removed from the financial statements. The gross and net amounts of non-performing loans according to user groups Group III Group IV Group V Current Period - December 31, 2018 Loans With Limited Collectability Loans With Doubtful Collectability Uncollectible Loans Current Period (Net) 913,567 969,315 979,662 Consumer and Commercial Loans (Gross) 1,626,111 2,131,158 7,338,007 Specific Provision (-) 712,576 1,161,855 6,358,552 Consumer and Commercial Loans (Net) 913,535 969,303 979,455 Banks (Gross) - - 1,551 Specific Provision (-) - - 1,551 Banks (Net) - - - Other Loans and Receivables (Gross) 78 27 32,376 Specific Provision (-) 46 15 32,169 Other Loans and Receivables (Net) 32 12 207 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 Prior Period (Net) 610,611 443,935 51,708 Consumer and Commercial Loans (Gross) 763,928 872,720 6,206,914 Specific Provision (-) 153,416 429,559 6,155,206 Consumer and Commercial Loans (Net) 610,512 443,161 51,708 Banks (Gross) - - 1,551 Specific Provision (-) - - 1,551 Banks (Net) - - - Other Loans and Receivables (Gross) 124 1,548 96,401 Specific Provision (-) 25 774 96,401 Other Loans and Receivables (Net) 99 774 -