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.) 464 Part III: Financial Highlights and Assessment of Risk Management Vakıf Yatırım Menkul Değerler AŞ, which is one of the consolidated subsidiaries of the Parent Bank, calculates capital adequacy in accordance with “Communiqué on Capital and Capital Adequacy of Intermediary Firms” of Capital Markets Board as six months periods. Güneş Sigorta AŞ and Vakıf Emeklilik ve Hayat AŞ, which are the consolidated subsidiaries of the Parent Bank operating in insurance sector, calculate capital adequacy in accordance with “Communiqué on Capital Adequacy Measurement and Assessment for Insurance, Reinsurance and Pension Firms” published by Republic of Turkey Undersecretariat of Treasury as six months periods. According to the calculations at December 31, 2018, there is no capital requirement for the subsidiaries mentioned. Unconsolidated investments in subsidiaries Title Address (City / Country) Bank’s Share –If Different, Voting Rights (%) Bank’s Risk Group Share (%) 1 Vakıf Enerji ve Madencilik AŞ (**) Ankara/ Turkey 65.50 82.60 2 Taksim Otelcilik AŞ (*) İstanbul/ Turkey 51.00 51.69 3 Vakıf Pazarlama Sanayi ve Ticaret AŞ (*) İstanbul/ Turkey 86.97 93.82 4 Vakıf Gayrimenkul Değerleme AŞ (*) Ankara/ Turkey 94.29 96.56 Total Assets Equity Tangible Assets Interest Income Income on Securities Portfolio Current Year’s Profit/Loss Prior Period’s Profit/Loss Fair Value 1 27,804 12,972 1,040 1,236 - 1,316 6,020 22,459 2 395,482 377,985 213,177 13,001 - 23,214 5,653 431,760 3 80,275 57,604 13,816 4,620 - 2,811 3,882 49,463 4 33,619 26,051 842 3,552 - (59) (178) 25,428 (*) The financial statement information provided for these associates is taken from the financial statements dated September 30, 2018. (**) The financial statement information provided for these associates is taken from the financial statements dated December 31, 2017. Unconsolidated subsidiaries, reasons for not consolidating such investments and accounting treatments applied for such investments: Vakıf Enerji ve Madencilik AŞ, Taksim Otelcilik AŞ, Vakıf Pazarlama Sanayi ve Ticaret AŞ and Vakıf Gayrimenkul Değerleme AŞ have not been consolidated since they are not among the financial subsidiaries of the Bank. Therefore, the subsidiaries whose fair value can be reliably measured are reflected in the consolidated financial statements at their fair values. In the current period, Türkiye Vakıflar Bankası T.A.O, a shareholder of Vakıf Pazarlama Sanayi ve Ticaret AŞ, purchased all of Memur ve Hizmetlileri Emekli ve Sağlık Yardım Sandığı Vakfı’s nominal shares of Vakıf Pazarlama Sanayi ve Ticaret AŞ worth TL 2,811 for TL 4,598 and all of VakıfBank Personeli Özel Sosyal Güvenlik Hizmetleri Vakfı’s nominal shares of Vakıf Pazarlama Sanayi ve Ticaret AŞ worth TL 2,525 for TL 4,131 on September 28, 2018. The purchased shares are presented in the Purchases, in the movement table for the subsidiaries. After the purchase, the parent bank’s nominal share in Vakıf Yatırım Menkul Değerler AŞ increased to TL 26,302 from TL 20,966 and share amount increased to 86.97% from 69.33%. In the current period, Türkiye Vakıflar Bankası T.A.O, a shareholder of Vakıf Gayrimenkul Değerleme AŞ purchased all of Memur ve Hizmetlileri Emekli ve Sağlık Yardım Sandığı Vakfı’s nominal shares of Vakıf Gayrimenkul Değerleme AŞ worth TL 1,200 for TL 2,256 and all of VakıfBank Personeli Özel Sosyal Güvenlik Hizmetleri Vakfı’s nominal shares of Vakıf Gayrimenkul Değerleme AŞ worth TL 4,400 for TL 8,275 on September 28, 2018. The purchased shares are presented in the Purchases, in the movement table for the subsidiaries. After the purchase, the bank’s nominal share in Vakıf Yatırım Menkul Değerler AŞ increased to TL 13,200 from TL 7,600 and share amount increased to 94.29% from 54.29%.