VKF_FRAE_2017

CONTENTS PART I: INTRODUCTION 14 Agenda of the Ordinary General Assembly Meeting 15 Dividend Policy 16 Compliance Opinion on the Annual Report 17 Declaration of Responsibility 18 VakıfBank in Brief 19 VakıfBank’s Cornerstones 20 History and Ownership Structure 22 Key Financial Indicators 24 Key Ratios 26 Message from the Chairman 28 Message from the General Manager 32 The World and Turkey in 2017 48 2017 at a Glance 50 Review of Operations in 2017 89 Corporate Social Responsibility 90 Affiliates and Subsidiaries PART II: MANAGEMENT AND CORPORATE GOVERNANCE PRACTICES 92 Summary Report of the Board of Directors 94 Board of Directors 97 Board of Statutory Auditors 98 Executive Management 103 Internal Control Systems Executives 104 Committees 106 Human Resources Practices 110 Outsourced Support Services 110 Transactions with the Bank’s Risk Group 111 Corporate Governance Principles Compliance Report PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 122 Statutory Auditor’s Report 123 Assessment of the Internal Systems and 2017 Operations 125 Risk Management Policies Applied by Risk Type 129 Independent Auditors’ Report, Unconsolidated Financial Statements, Explanations and Footnotes for the Year Ended December 31, 2017 265 Independent Auditors’ Report, Consolidated Financial Statements, Explanations and Footnotes for the Year Ended December 31, 2017 403 Evaluation of the Bank’s Financial Position, Profitability and Solvency 405 International Credit Ratings 406 Five-Year Summary Financial Information