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.) 500 Part III: Financial Highlights and Assessment of Risk Management 5. Information on other operating income Current Period - December 31, 2018 Income from reversal of the specific provisions for loans from prior periods 938,450 Income from reversal of the general provisions for loans from prior periods 801,200 Earned insurance premiums (net of reinsurance share) 1,346,870 Communication income 36,269 Gain on sale of assets 210,465 Income from private pension business 165,143 Rent income 192,039 Other income 255,007 Total 3,945,443 Prior Period - December 31, 2017 Income from reversal of the specific provisions for loans from prior periods 937,669 Earned insurance premiums (net of reinsurance share) 1,207,630 Communication income 43,602 Gain on sale of assets 149,607 Income from private pension business 102,575 Rent income 770 Other income 643,392 Total 3,085,245 6. Expected Credit Loss Current Period - December 31, 2018 Expected Credit Loss 4,508,666 12 month expected credit loss (stage 1) 439,365 Significant increase in credit risk (stage 2) 995,402 Non-performing loans (stage 3) 3,073,899 Marketable Securities Impairment Expense 4,603 Financial Assets at Fair Value through Profit or Loss 1,566 Financial Assets at Fair Value Through Other Comprehensive Income 3,037 Investments in Associates, Subsidiaries and Held-to-maturity Securities Value Decrease - Investments in Associates - Subsidiaries - Joint Ventures - Other 530,000 Total 5,043,269 (*) As of December 31, 2018, the Bank has provided a free provision amounting to TL 530,000 in 2018, in addition to TL 500,000 free provision, which was allocated in 2018 within the framework of the precautionary principle.