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.) 502 Part III: Financial Highlights and Assessment of Risk Management 7.Information on other operating expenses Current Period – December 31, 2018 Personnel Costs 2,452,360 Reserve for Employee Termination Benefits 25,881 Deficit Provision for Pension Funds - Impairment Losses on Tangible Assets 13,006 Depreciation Expenses on Tangible Assets 176,923 Impairment Losses on Intangible Assets - Impairment Losses on Goodwill - Amortization Expenses on Intangible Assets 32,632 Impairment Expenses of Equity Participations for which Equity Method is Applied - Impairment Losses on Assets to be Disposed - Depreciation Expenses on Assets to be Disposed - Impairment Losses on Assets Held for Sale 13,632 Other Operating Expenses 3,140,934 Operational lease expenses 309,686 Repair and maintenance expenses 63,461 Advertisement expenses 182,176 Other expenses 2,585,611 Loss on sale of assets 4,647 Other (*) 1,860,357 Total 7,720,372 (*) Other operating expenses amounting to TL 1,860,357 is comprised of provision expenses for dividends to the personnel amounting to TL 276,496 tax, fees and funds expenses amounting to TL 369,491 ,Saving Deposits Insurance Fund expenses amounting to TL 197,864 Compensation pensions amounting to TL 13,107 cumulative/ noncumulative commission expenses amounting to TL 96,101, production commission expenses to TL 240,480 and other expenses amounting to TL 666,818. Prior Period - December 31, 2017 Personnel costs 1,979,798 Reserve for employee termination benefits 49,531 Provision for deficit in pension funds - Impairment losses on tangible assets - Depreciation expenses on tangible assets 150,160 Impairment losses on intangible assets - Amortization expenses on intangible assets 30,270 Impairment losses on assets to be disposed - Depreciation expenses on assets to be disposed - Impairment losses on assets held for sale - Other operating expenses 2,413,794 Operational lease related expenses 258,477 Repair and maintenance expenses 68,416 Advertisement expenses 129,056 Other expenses 1,957,845 Loss on sale of assets 2,302 Other (*) 1,108,292 Total 5,734,147 (*) Other operating expenses amounting to TL 1,108,292 is comprised of provision expenses for dividends to the personnel amounting to TL 168,500, tax, fees and funds expenses amounting to TL 163,010, Saving Deposits Insurance Fund expenses amounting to TL 168,783, Compensation pensions amounting to TL 9,807, cumulative/ noncumulative commission expenses amounting to TL 91,727, production commission expenses toTL 251,574 and other expenses amounting to TL 254,891