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.) 504 Part III: Financial Highlights and Assessment of Risk Management The table of the tax provision reconciliation for the years December 31, 2018 and December 31, 2017 is as below. Current Period - December 31, 2018 Profit before tax 5,689,773 Tax calculated with legal tax rate (*) 978,161 Non-deductible expenses, discounts and other, net 107,134 Total 1,085,295 Prior Period - December 31, 2017 Profit before tax 4,957,892 Tax calculated with legal tax rate 804,637 Non-deductible expenses, discounts, additions and others (net) 187,390 Tax Provision Expense on Continuing Operations 992,027 (*) Different tax rates are used in the subsidiaries of the parent bank operating abroad, there are corparete tax exemptions on earnings of some subsidiaries operating in Turkey. 12. Information on net profit and loss The nature and amount of certain income and expense items from ordinary operations is disclosed if the disclosure for nature, amount and repetition rate of such items is required for the complete understanding of the Bank’s performance for the period Group has incurred TL 34,957,243 interest income and TL 23,529,737 interest expense, also incurred TL 2,151,048 amount of net fee and commission income from its ordinary banking operations (December 31, 2017: TL 22,045,179 interest income, TL 13,073,305 interest expense, TL 1,235,550 net fee and commission income). Any changes in estimations, that might have a material effect on current and subsequent period, is indicated None.  13. Income/loss related to non-controlling interest Current Period - December 31, 2018 Income/(losses) related to non-controlling interest 60,200 Prior Period - December 31, 2017 Income/(losses) related to non-controlling interest 84,914 14. Information related to the sub-accounts which constitute at least 20% of other items, in case of the components of other items in the income statement exceeding 10% of the group total Other fees and commission income of the Group mainly consist of credit card fees and commissions, money transfer commissions, research fees. Other fees and commission expenses of the Group mainly consist of credit card fees and commissions, commission paid for funds borrowed from foreign banks.