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.) 482 Part III: Financial Highlights and Assessment of Risk Management Movement of severance pay provision in the period: Current Period - December 31, 2018 Opening balance 413,371 Current service cost 39,450 Previous service cost (7,414) Interest cost 47,063 Paid compensation (53,882) Payment/Reduction of benefits/Layoff accordingly composed loss/(gain) 6,026 Actuary loss/(gain) 13,278 Net foreign exchange differences from foreign subsidiaries 546 Other Changes (*) (216) Closing balance 458,222 (*) Vakıf Portföy Yönetimi AŞ, a subsidiary of the Bank, has been classified as financial assets held for sale in the current year, provision for severance pay is deducted from the line. Prior Period - December 31, 2017 Opening balance 395,650 Current service cost 39,480 Previous service cost 8,866 Interest cost 40,470 Paid compensation (42,544) Payment/Reduction of benefits/Layoff accordingly composed loss/(gain) (569) Actuary loss/(gain) (28,363) Net foreign exchange differences from foreign subsidiaries 381 Closing balance 413,371