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.) 484 Part III: Financial Highlights and Assessment of Risk Management Distribution of total assets of the Retirement Fund as of December 31, 2018 and December 31, 2017 is presented below: Current Period - December 31, 2018 Bank placements 2,453,589 Government Bonds and Treasury Bill, Fund and Accrual Interest Income 659,361 Tangible assets (*) 1,723,955 Other 192,812 Total 5,029,717 Previous Period - December 31, 2017 Bank placements 2,290,956 Government Bonds and Treasury Bill, Fund and Accrual Interest Income 362,512 Tangible assets (*) 2,517,925 Other 189,158 Total 5,360,551 (*) The Tangible assets value indicates all the stocks’ and real estate properties’ market values, as of December, 31, 2017.  Provision for currency exchange loss on foreign currency indexed loans Current Period - December 31, 2018 Provision for currency exchange loss on foreign currency indexed loans 32 Prior Period - December 31, 2017 Provision for currency exchange loss on foreign currency indexed loans 10,253 The Group has recorded provision amounting to TL 32 (December 31, 2017: TL 10,253) for foreign exchange losses on principal amounts of foreign currency indexed loans and reflected the related foreign exchange loss amount in the financial statements by offsetting from related loans. Provisions for non-cash loans that are not indemnified and not converted into cash As of December 31, 2018, the Parent Bank has recorded TL 26,739 (December 31, 2017: TL 75,942) as provisions for non-cash loans that are not indemnified or converted into cash. Information on provision for probable risks As of December 31, 2018, free provision amounting to TL 1,030,000 of which TL 530,000 was recognized as expense in the current period and TL 500,000 had been recognized as expense in prior period, which is not in accordance with the reporting standards, provided by the Bank management in line with the conservatism principle considering the possible effect of the circumtances that may arise from the negative changes in the economy and market conditions. (31 December 2017: TL 500,000)