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.) 456 Part III: Financial Highlights and Assessment of Risk Management Information on held-to-maturity investment securities Prior Period - December 31, 2017 Debt Securities 16,766,071 Quoted at stock exchanges 16,652,591 Unquoted at stock exchanges 113,480 Impairment losses (-) - Total 16,766,071 The movement table of the financial assets measured at amortised cost Current Period - December 31, 2018 Balances at the beginning of the period 16,766,071 Foreign currency differences on monetary assets 1,144,459 Purchases during the period 11,162,210 IFRS 9 Classification 7,656,572 Disposals through sales/redemptions (841,350) Change in Impairment losses - Change in amortized costs of the securities (*) 4,092,548 Balances at the end of the period 39,980,510 (*) Changes in amortized costs of the marketable securities also include rediscount differences in marketable securities. (**) As of January 1, 2018, the Bank has applied the transition to the management model for certain government debt securities as a financial asset measured at amortized cost within the transition to TFRS 9. Bank previously classified securities as available-for-sale financial assets at fair value through other comprehensive income. The movement table of the held-to-maturity investments Prior Period - December 31, 2017 Balances at the beginning of the period 8,180,535 Foreign currency differences on monetary assets 116,077 Purchases during the period 2,423,358 Transfers to available for sale portfolio (**) 7,501,432 Disposals through sales/redemptions (2,186,864) Change in Impairment losses 6,758 Change in amortized costs of the securities (*) 724,775 Balances at the end of the period 16,766,071 (*) Changes in the amortized costs of the marketable securities also include rediscount differences in marketable securities. (**) The Parent Bank had classified TL 7,166,704 nominal value of marketable securities, which was followed under available for sale securities portfolio, to held to maturity portfolio on different dates in 2017. These marketable securities are included in the held to maturity portfolio with TL 7,501,432 book value, representing the fair value of the securities as from the dates when the classification occurred. The revaluation differences amounting to TL 63,966 as from the dates when the classification occurred are now being followed under equity, and the composed revaluation differences will be transferred to terminal accounts until the end of the maturity of the securities.