TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI UNCONSOLIDATED FINANCIAL REPORT AS AT AND FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018

Transcription

1 TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI UNCONSOLIDATED INTERIM FINANCIAL STATEMENTS AND RELATED DISCLOSURES AT SEPTEMBER 30, 2018 TOGETHER WITH REVIEW REPORT (Convenience Translation of Publicly Announced Unconsolidated Interim Financial Statements and Review Report Originally Issued in Turkish, See in Note I. of Section Three)

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4 UNCONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR S REVIEW REPORT ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AS AT AND Address : Saray Mahallesi Dr. Adnan Büyükdeniz Caddesi No:7/A-B Ümraniye/İSTANBUL Telephone : Fax : Electronic web site : Electronic mail address : mevzuat@vakifbank.com.tr The unconsolidated financial report as at and for the nine-month period ended September 30, 2018, prepared in accordance with the Communiqué of Financial Statements and Related Disclosures and Footnotes to be Publicly Announced by Banks as regulated by Banking Regulation and Supervision Agency, is comprised of the following sections: GENERAL INFORMATION ABOUT THE BANK UNCONSOLIDATED INTERIM FINANCIAL STATEMENTS ACCOUNTING POLICIES INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT OF THE BANK DISCLOSURES AND FOOTNOTES ON UNCONSOLIDATED FINANCIAL STATEMENTS OTHER DISCLOSURES AND FOOTNOTES INDEPENDENT AUDITORS REVIEW REPORT INTERIM ACTIVITY REPORT The accompanying unconsolidated financial statements for the nine-month period and related disclosures and footnotes which have been independently reviewed, are prepared in accordance with the Regulation on Accounting Applications for Banks and Safeguarding of Documents, Turkish Accounting Standards, Turkish Financial Reporting Standards, the related statements and guidance and in compliance with the financial records of our Bank and unless otherwise stated, presented in thousands of Turkish Lira. November 9, 2018 Şahap KAVCIOĞLU Serdar TUNÇBİLEK Mehmet Emin ÖZCAN Deputy Chairman of the Board and Audit General Manager and Board and Audit Committee Member Board Member Committee Member Şuayyip İLBİLGİ Assistant General Manager Ferkan MERDAN Director of Accounting and Financial Affairs The authorized contact person for questions on this financial report: Name-Surname/Title : S. Buğra SÜRÜEL / Manager Name-Surname/Title : Burcu Sütcü AKDAĞ / Asst. Manager Phone no : Phone no : Fax no : Fax no :

5 SECTION ONE Page: General Information I. History of the Bank including its incorporation date, initial legal status, amendments to legal status 1 II. The Bank s shareholders structure, management and internal audit, direct and indirect shareholders, change in shareholder structure 1-2 during the period and information on Bank s risk group III. Information on the chairman and members of the board of directors, audit committee members, general manager, assistant general 3-4 managers and their shares in the Bank IV. Information on the Bank s qualified shareholders 4 V. Information about the services and nature of activities of the Bank 5 VI. Current or likely actual or legal barriers to immediate transfer of equity or repayment of debts between Bank and its subsidiaries 5 SECTION TWO Unconsolidated Financial Statements I. Balance sheet 7-10 II. Off-balance sheet items III. Statement of profit or loss IV. Statement of profit and loss and other comprehensive income V. Statement of changes in shareholders equity VI. Statement of cash flow SECTION THREE Accounting Policies I. Basis of presentation 21 II. Strategy for the use of financial instruments and information on foreign currency transactions III. Information on associates and subsidiaries 23 IV. Information on forwards, options and other derivative transactions 24 V. Information on interest income and expenses 24 VI. Information on fees and commissions 24 VII. Information on financial assets and footnotes VIII. Information on expected loss provision IX. Information on offsetting of financial instruments 28 X. Information on sales and repurchase agreements and securities lending 28 XI. Information on assets held for sale and discontinued operations and related liabilities 29 XII. Information on goodwill and other intangible assets 29 XIII. Information on tangible assets XIV. Information on leasing activities 30 XV. Information on provisions, contingent liabilities and assets 31 XVI. Information on obligations of the Bank concerning employee rights XVII. Information on taxation XVIII. Information on cash and cash equivalents 35 XIX. Additional information on borrowings 35 XX. Information on issuance of equity securities 35 XXI. Information on confirmed bills of exchange and acceptances 35 XXII. Information on government incentives 36 XXIII. Information on segment reporting 36 XXIV. Information on other matters XXV. Explanations on prior period accounting policies not valid for the current period SECTION FOUR Information Related To Financial Position and Risk Management I. Information on equity items II. Foreign currency exchange risk III. Interest rate risk IV. Stock position risk V. Liquidity risk and liquidity coverage ratio VI. Leverage ratio 63 VII. Segment reporting VIII. Information on risk management SECTION FIVE Disclosures and Footnotes on Unconsolidated Financial Statements I. Information and disclosures related to assets II. Information and disclosures related to liabilities III. Information and disclosures related to off-balance sheet items IV. Information and disclosures related to the statement of income V. Information and disclosures related to the Bank s risk group SECTION SIX Other Disclosures I. Other disclosures on the Bank s activity 121 II. Information on the Bank s rating given by international credit rating institutions 121 III. Significant events and matters subsequent to balance sheet date that are not resulted 122 SECTION SEVEN Independent Auditors Review Report I. Information on the independent auditors review report 123 II. Explanations and footnotes prepared by the independent auditors 123 SECTION EIGHT Information on Interim Activity Report I. Interim period activity report included chairman of the board of directors and CEO s assessments for the interim activities

6 TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS AT AND SECTION ONE GENERAL INFORMATION I. HISTORY OF THE BANK INCLUDING ITS INCORPORATION DATE, INITIAL LEGAL STATUS, AMENDMENTS TO LEGAL STATUS Türkiye Vakıflar Bankası Türk Anonim Ortaklığı ( The Bank ) was established to operate as stated in the disclosure V of this section, under the authorization of a special law numbered 6219, called the Law of Türkiye Vakıflar Bankası Türk Anonim Ortaklığı, on January 11, 1954 within the framework of the authority granted to The General Directorate of the Foundations of Turkish Republic Prime Ministry ( The General Directorate of the Foundations ). The Bank s statute has not been changed since its establishment. II. THE BANK S SHAREHOLDERS STRUCTURE, MANAGEMENT AND INTERNAL AUDIT, DIRECT AND INDIRECT SHAREHOLDERS, CHANGE IN SHAREHOLDER STRUCTURE DURING THE PERIOD AND INFORMATION ON BANK S RISK GROUP The shareholder having control over the shares of the Bank is the General Directorate of the Foundations. As at September 30, 2018 and December 31, 2017, the Bank s paid-in capital is TL 2,500,000, divided into 250,000,000,000 shares with each has a nominal value of Kr 1. The Bank s shareholders structure as at September 30, 2018 and December 31, 2017 are as stated below: Number of Shares 100 unit Nominal Value of the Shares Thousands of TL Share Percentage (%) Shareholders Registered foundations represented by the General Directorate of the Foundations (Group A) 1,075,058,640 1,075, Vakıfbank Memur ve Hizmetlileri Emekli ve Sağlık Yardım Sandığı Vakfı (Group C) 402,552, , Registered foundations represented by the General Directorate of the Foundations (Group B) 386,224, , Other appendant foundations (Group B) 2,673,619 2, Other registered foundations (Group B) 1,448,543 1, Other real persons and legal entities (Group C) 1,527,393 1, Publicly traded (Group D) 630,514, , Total 2,500,000,000 2,500,

7 TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS AT AND GENERAL INFORMATION (Continued) II. THE BANK S SHAREHOLDERS STRUCTURE, MANAGEMENT AND INTERNAL AUDIT, DIRECT AND INDIRECT SHAREHOLDERS, CHANGE IN SHAREHOLDER STRUCTURE DURING THE PERIOD AND INFORMATION ON BANK S RISK GROUP (Continued) The changes in the ownership structure of the bank are arranged by the provisional article of Law No. 696, paragraph 6, published in the Official Gazette dated December 24, 2017 numbered 6219, while the other provisions of the Law no 6219 are arranged by the 7th and 12th paragraphs of the mentioned provisional article of Law. It is stated in the 6th paragraph of the 2nd sub-article of the related article that In the act of the application to the Bank within the seven days after the effective date of the cabinet decree, by the shareholders of the stocks that are managed and represented by the General Directorate of Foundations, with the exception of that are owned by the appendant foundations among the Group A and Group B stocks of the Bank, the stocks are transferred to the treasury, by taking their per share value into consideration, over the calculated average value of the values that are mentioned in the conclusion sections of the valuation projects that are prepared by three different firms. The absolute amount of the stocks are recorded in the share ledger on behalf of the Undersecretariat of Treasury within the seven days after the effective date of the cabinet decree. It is stated in the 6th paragraph of the 3rd sub-article of the related article that In the act of the application to the Bank within the hundred and twenty days after the effective date of the cabinet decree, by the shareholders of the stocks that are owned by the Vakıfbank Officer and Retainers Retirement and Health Care Foundation (Fund), among the Group C stocks of the Bank, the dependent minister of the Undersecretariat of Treasury has the authority to transfer the stocks over their per share value, that is stated the for the fund, by the Council of Ministers to the Undersecretariat of Treasury. It is stated in the 6th paragraph of the 4th sub-article of the related article that In the act of the application to the Bank within the hundred and twenty days after the effective date of the cabinet decree, by the shareholders of the stocks that are owned by the appendant foundations among the Group B stocks of the Bank, and the stocks that are owned by the other natural and legal persons among the Group C stocks of the Bank, the dependent minister of the Undersecretariat of Treasury has the authority to transfer the stocks over their per share value, that is stated the for the fund, by the Council of Ministers. It is stated in the 6th paragraph of the 5th sub-article of the related article that The stocks that are transferred to the Treasury, are represented and managed by the dependent Minister of the Undersecretariat of Treasury. With the mentioned provisional article, the ownership of the stocks which are represented and managed by the T.C General Directorate for Foundations will be transferred to the Prime Ministry Undersecretariat of Treasury. 2

8 TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS AT AND GENERAL INFORMATION (Continued) III. INFORMATION ON THE CHAIRMAN AND MEMBERS OF THE BOARD OF DIRECTORS, AUDIT COMMITTEE MEMBERS, GENERAL MANAGER, ASSISTANT GENERAL MANAGERS AND THEIR SHARES IN THE BANK Date of Appointment Experience in Banking and Management Name and Surname Responsibility Education Board of Directors Doç.Dr.Şahap KAVCIOĞLU Deputy Chairman of the Board August 13, 2018 PhD 24 years Mehmet Emin ÖZCAN Member General Manager June 9, 2017 Bachelor s 35 years Dr.Adnan ERTEM Member October 28, 2010 PhD 30 years Şahin UĞUR Member June 9, 2017 Bachelor s 32 years Serdar TUNÇBİLEK Member June 9, 2017 Bachelor s 32 years Dilek YÜKSEL Member 29 March, 2016 Bachelor s 6 years Ömer ARISOY Member June 9, 2017 Bachelor s 18 years Dr.Cemil Ragıp ERTEM Member August 13, 2018 PhD 20 years Audit Committee Doç.Dr.Şahap KAVCIOĞLU Member August 14, 2018 PhD 24 years Serdar TUNÇBİLEK Member June 15, 2017 Bachelor s 32 years Auditors Yunus ARINCI Auditor March 19, 2010 Master s 21 years Hasan TÜRE Auditor June 9, 2017 Bachelor s 34 years Executive Vice Presidents Metin Recep ZAFER Banking Operations, Credit, Customer and Account Operations, Treasury Operations, Foreign Operations June 13, 2006 PhD 22 years Hasan ECESOY Treasury Management, International Banking and Investor Relations, Teeasury Management Middle Office June 18, 2010 PhD 24 years Osman DEMREN SME Marketing,Cash Management April 6, 2011 Master s 27 years Muhammet Lütfü ÇELEBİ Retail Banking Marketing, Retail Banking Marketing Services October 23, 2013 Bachelor s 23 years Mustafa SAYDAM Administrative Affairs, Construction, Real Estate and Purchasing October 28, 2013 Bachelor s 24 years Mehmet Emin KARAAĞAÇ Chief Legal Counsellor, Legal Affairs, Credit Risk Liquidation November 8, 2013 Bachelor s 29 years Yakup ŞİMŞEK Corporate Banking Marketing, Commercial Banking Marketing, Local Government Banking Marketing, Corporate Branches September 7, 2016 Bachelor s 22 years H.Uğur BİLGİN Human Resources, Corporate Development and Academy August 1, 2017 Bachelor s 31 years Şeyh Mehmet BOZ Application of Credit Policies and Processes, Loans Planning and Follow-up, Evaluation and Rating August 1, 2017 Master s 23 years İlker YEŞİL Payment Systems, Digital Banking and Distribution Channels August 1, 2017 Bachelor s 23 years Şuayyip İLBİLGİ Accounting and Financial Affairs, Strategy and Planning, Subsidiaries and Affiliates August 1, 2017 Bachelor s 22 years Ersin ÖZOĞUZ SME Banking, Marketing,Cash Management Marketing August 1, 2017 Bachelor s 22 years Abdi Serdar ÜSTÜNSALİH R&D and Digital Transformation, Core Banking Application Development Channel Management and Marketing Application Development, System Management,IT Operation and Support, IT Planning and Coordination. July 9, 2018 Master s 27 years 3

9 TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS AT AND GENERAL INFORMATION (Continued) III. INFORMATION ON THE CHAIRMAN AND MEMBERS OF THE BOARD OF DIRECTORS, AUDIT COMMITTEE MEMBERS, GENERAL MANAGER, ASSISTANT GENERAL MANAGERS AND THEIR SHARES IN THE BANK (Continued) Corporate Communication Chairmanship and Board of Directors Operations Chairmanship Departments are working dependent to the General Manager. Board of Directors membership election of the Bank is renewed every year in the General Meeting. Abdi Serdar ÜSTÜNSALİH, Senior Vice President, has been appointed as Executive Vice President by the Board decision dated July 4, İsmail ALPTEKİN, Chairman of the Board of Directors and Sabahattin BIRDAL, Board Member and Audit Committee Member of the Bank are no longer in duty as of August 13, Dr. Cemil Ragıp ERTEM has been selected as Board member at the 64 th Ordinary General Assembly Meeting of the Bank held on August 13, Dr. Raci KAYA has been selected as the Chairman of Board of Directors, Doç. Dr. Şahap KAVCIOĞLU has been selected as the Deputy Chairman of the Board of Directors and Audit Committee Member unanimously according to Bank Principal Agreement's related articles at the Board Meeting of the Bank held at August 14, Dr. Raci KAYA, the Chairman of Board of Directors, resigned from his duty following his appointment as Executive Director of International Monetary Fund (IMF), representing the country group in the IMF's executive directorate, as of October 18, IV. INFORMATION ON THE BANK S QUALIFIED SHAREHOLDERS Nominal Value of Shares Share Percentage Paid Shares (Nominal) Unpaid Shares Shareholders Registered foundations represented by the General Directorate of the Foundations (Group A) 1,075, ,075,058 - Vakıfbank Memur ve Hizmetlileri Emekli ve Sağlık Yardım Sandığı Vakfı (Group C) 402, ,553 - Registered foundations represented by the General Directorate of the Foundations (Group B) 386, ,225 - The shareholder holding control over the Bank is the Registered foundations represented by the General Directorate of the Foundations having 58.45% of the Bank s outstanding shares. Another organization holding qualified share in the Bank is Vakıfbank Memur ve Hizmetlileri Emekli ve Sağlık Yardım Sandığı Vakfı, having 16.10% of outstanding shares of the Bank. In the section I of the report, under the heading II, the changes in the ownership structure of our bank is stated with the provisional article of Law No. 696, published in the Official Gazette dated December 24,

10 TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS AT AND GENERAL INFORMATION (Continued) V. INFORMATION ABOUT THE SERVICES AND NATURE OF ACTIVITIES OF THE BANK The Bank was established under the authorization of special law numbered 6219, called the Law of Türkiye Vakıflar Bankası Türk Anonim Ortaklığı, on January 11, 1954 within the framework of the authority granted to The General Directorate of the Foundations. Operational activities of the Bank as stated at its Articles of Association are as follows: Lending loans by granting securities and real estates as collateral, Establishing or participating in all kinds of insurance corporations already established, Trading real estates, Servicing all banking operations and services, Operating real estates and participating in industrial sectors for corporations handed over by foundations and General Directorate of the Foundations in line with conditions stipulated by agreements if signed, The Bank is established to render banking services to the foundations and carry out cashier transactions of the General Directorate of Foundations in compliance with the agreements signed by General Directorate of the Foundations. As at September 30, 2018, the Bank has 947 domestic, 3 foreign, in total 950 branches (December 31, 2017: 924 domestic, 3 foreign, in total 927 branches). As at September 30, 2018, the Bank has 16,747 employees (December 31, 2017: 16,097 employees). VI. CURRENT OR LIKELY ACTUAL OR LEGAL BARRIERS TO IMMEDIATE TRANSFER OF EQUITY OR REPAYMENT OF DEBTS BETWEEN BANK AND ITS SUBSIDIARIES None. 5

11 TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS AT AND SECTION TWO UNCONSOLIDATED FINANCIAL STATEMENTS 6

12 UNCONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) AS AT SEPTEMBER 30, 2018 Reviewed Current Period September 30, 2018 ASSETS Notes TL FC Total I. FINANCIAL ASSETS (Net) 48,375,873 50,525,135 98,901, Cash and cash equivalents V-I-1 5,022,004 40,819,298 45,841, Cash and balances with Central Bank V-I-1 4,812,794 30,963,081 35,775, Banks V-I-3 209,210 9,856,217 10,065, Receivables from Money Markets Financial assets at fair value through profit or loss V-I ,198 90, Government debt securities Equity securities 15 90,198 90, Other financial assets Financial assets at fair value through other comprehensive income V-I-4 7,179, ,700 7,698, Government debt securities 7,179, ,779 7,694, Equity securities - 3,921 3, Other financial assets Financial assets measured at amortised cost V-I-6 30,445,766 8,681,787 39,127, Government debt securities 30,445,766 8,441,720 38,887, Other financial assets - 240, , Derivative financial assets 5,764, ,152 6,179, Derivative financial assets at fair value through profit or loss 5,764, ,152 6,179, Derivative financial assets at fair value through other comprehensive income Non-performing financial assets Allowance for expected credit losses (-) 36,682-36,682 II. LOANS (Net) 144,615,860 90,097, ,713, Loans V-I-5 145,761,231 90,081, ,842, Loans measured at amortised cost 145,761,231 90,081, ,842, Loans at fair value through profit or loss Loans at fair value through other comprehensive income Receivables from leasing transactions V-I Finance lease receivables Operational lease receivables Unearned income ( - ) Factoring receivables Factoring receivables measured at amortised cost Factoring receivables at fair value through profit or loss Factoring receivables at fair value through other comprehensive income Non-performing loans 9,534,027 38,853 9,572, Allowance for expected credit losses (-) 10,679,398 23,028 10,702, Month expected credit losses (Stage 1) 1,871,881 11,705 1,883, Significant increase in credit risk (Stage 2) 1,448,456-1,448, Credit-Impaired (Stage 3) 7,359,061 11,323 7,370,384 III. NON-CURRENTS ASSETS OR DISPOSAL GROUPS "HELD FOR SALE" AND "FROM DISCONTINUED OPERATIONS (Net) V-I-14 1,556,558-1,556, Held for sale 1,556,558-1,556, Held from discontinued operations IV. INVESTMENTS IN ASSOCIATES, SUBSIDIARIES AND JOINT VENTURES 2,359, ,019 2,916, Investments in associates (Net) V-I-7 634, , Associates accounted by using equity method Non-consolidated associates 634, , Investments in subsidiaries (Net) V-I-8 1,724, ,019 2,281, Non-consolidated financial subsidiaries 1,441, ,019 1,998, Non-consolidated non-financial subsidiaries 282, , Jointly Controlled Partnerships (Joint Ventures) (Net) V-I Jointly controlled partnerships accounted by using equity method Non-consolidated jointly controlled partnerships V. TANGIBLE ASSETS (Net) 1,540,979 11,634 1,552,613 VI. INTANGIBLE ASSETS AND GOODWILL (Net) 217, , Goodwill Other 217, ,008 VII. INVESTMENT PROPERTIES (Net) V-I VIII. CURRENT TAX ASSETS 403, ,286 IX. DEFERRED TAX ASSETS V-I X. OTHER ASSETS V-I-15 4,080,118 9,070,187 13,150,305 TOTAL ASSETS 203,149, ,261, ,410,429 Note: The prior period financial statements and related disclosures are not restated as permitted by TFRS 9 transition rules. Since, 2017 and 2018 financial statements are prepared on different principles, 2017 financial statements are presented separately. The accompanying explanations and notes form an integral part of these financial statements. 7

13 UNCONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) AS AT DECEMBER 31, 2017 Audited Prior Period December 31, 2017 ASSETS Notes TL FC Total I. CASH AND BALANCES WITH THE CENTRAL BANK V-I-1 4,021,321 24,623,503 28,644,824 II. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Net) V-I-2 1,802, ,600 1,936, Financial assets held for trading purpose 1,802, ,600 1,936, Debt securities issued by the governments Equity securities Derivative financial assets held for trading purpose V-I-2 1,801, ,600 1,936, Other securities Financial assets designated at fair value through profit or loss Debt securities issued by the governments Equity securities Loans Other securities III. BANKS V-I-3 308,552 11,579,276 11,887,828 IV. RECEIVABLES FROM INTERBANK MONEY MARKETS 1,652,102-1,652, Interbank money market placements 1,652,102-1,652, Istanbul Stock Exchange money market placements Receivables from reverse repurchase agreements V. AVAILABLE-FOR-SALE FINANCIAL ASSETS (Net) 12,412,036 1,137,678 13,549, Equity securities 15 43,355 43, Debt securities issued by the governments 12,412,021 1,094,323 13,506, Other securities VI. LOANS AND RECEIVABLES V-I-5 131,211,145 52,760, ,971, Performing loans and receivables V-I-5 130,197,248 52,734, ,932, Loans provided to risk group 63,865 98, , Debt securities issued by the governments Other 130,133,383 52,636, ,769, Loans under follow-up 7,605,376 32,830 7,638, Specific provisions (-) 6,591,479 7,340 6,598,819 VII. FACTORING RECEIVABLES VIII. HELD-TO-MATURITY INVESTMENT SECURITIES (Net) V-I-6 12,235,406 4,530,665 16,766, Debt securities issued by the governments 12,235,406 4,286,627 16,522, Other securities - 244, ,038 IX. INVESTMENTS IN ASSOCIATES (Net) V-I-7 349, , Associates, consolidated per equity method Unconsolidated associates 349, , Financial associates 337, , Non-Financial associates 11,400-11,400 X. INVESTMENTS IN SUBSIDIARIES (Net) V-I-8 1,851, ,248 2,213, Unconsolidated financial subsidiaries 1,587, ,248 1,950, Unconsolidated non-financial subsidiaries 263, ,720 XI. INVESTMENTS IN JOINT-VENTURES (Net) V-I Joint-ventures, consolidated per equity method Unconsolidated joint-ventures Financial joint-ventures Non-Financial joint-ventures XII. LEASE RECEIVABLES V-I Finance lease receivables Operational lease receivables Other Unearned income (-) XIII. DERIVATIVE FINANCIAL ASSETS HELD FOR RISK MANAGEMENT PURPOSE Fair value hedges Cash flow hedges Hedges of net investment in foreign operations XIV. TANGIBLE ASSETS (Net) 1,409,644 7,619 1,417,263 XV. INTANGIBLE ASSETS (Net) 210, , Goodwill Other intangibles 210, ,970 XVI. INVESTMENT PROPERTIES (Net) V-I XVII. TAX ASSETS Current tax assets Deferred tax assets V-I XVIII. ASSETS HELD FOR SALE AND ASSETS RELATED TO THE DISCONTINUED V-I-14 OPERATIONS (Net) 1,312,493-1,312, Assets held for sale 1,312,493-1,312, Assets related to the discontinued operations XIX. OTHER ASSETS V-I-15 3,036,653 3,622,373 6,659,026 TOTAL ASSETS 171,813,278 98,758, ,571,710 Note: The prior period financial statements and related disclosures are not restated as permitted by TFRS 9 transition rules. Since, 2017 and 2018 financial statements are prepared on different principles, 2017 financial statements are presented separately. The accompanying explanations and notes form an integral part of these financial statements. 8

14 UNCONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) AS AT SEPTEMBER 30, 2018 Reviewed Current Period September 30, 2018 LIABILITIES AND EQUITY Notes TL FC Total I. DEPOSITS V-II-1 112,681,127 78,207, ,888,301 II. FUNDS BORROWED V-II-3 732,240 46,818,750 47,550,990 III. MONEY MARKET FUNDS 23,763,612 3,625,242 27,388,854 IV. MARKETABLE SECURITIES (Net) V-II-3 8,321,160 20,210,875 28,532, Bills 4,286,430-4,286, Asset backed securities Bonds 4,034,730 20,210,875 24,245,605 V. FUNDS 3,074-3, Borrower funds Other 3,074-3,074 VI. FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS VII. DERIVATIVE FINANCIAL LIABILITIES V-II-2 3,224, ,625 3,474, Derivative financial liabilities at fair value through profit or loss 3,224, ,625 3,474, Derivative financial liabilities at fair value through other comprehensive income VIII. FACTORING PAYABLES IX. LEASE PAYABLES V-II Finance lease payables Operating lease payables Other Deferred finance lease expenses ( - ) X. PROVISIONS V-II-7 2,056,192 6,013 2,062, Provision for restructuring Reserves for employee benefits 896, , Insurance technical reserves (Net) Other provisions 1,159,724 6,013 1,165,737 XI. CURRENT TAX LIABILITIES V-II-8 472,004 1, ,384 XII. DEFERRED TAX LIABILITIES 263,131 21, ,179 XIII. LIABILITIES RELATED TO NON-CURRENT ASSETS "HELD FOR SALE" AND V-II-9 "DISCONTINUED OPERATIONS" (Net) Held for sale Related to discontinued operations XIV. SUBORDINATED DEBT V-II-10 5,544,627 8,443,716 13,988, Loans Other debt instruments 5,544,627 8,443,716 13,988,343 XV. OTHER LIABILITIES V-II-4 7,805,483 4,266,907 12,072,390 XVI. SHAREHOLDERS` EQUITY V-II-11 26,614,700 77,736 26,692, Paid-in capital V-II-11 2,500,000-2,500, Capital reserves 815, , Equity share premiums 723, , Share cancellation profits Other capital reserves 91,823-91, Other accumulated comprehensive income that will not be reclassified in profit or loss 2,008,516 83,262 2,091, Other accumulated comprehensive income that will be reclassified in profit or loss (255,255) (5,526) (260,781) 16.5 Profit reserves 17,864,763-17,864, Legal reserves 2,007,670-2,007, Statutory reserves Extraordinary reserves 15,406,693-15,406, Other profit reserves 450, , Profit or loss 3,680,935-3,680, Prior years' profits or losses 570, , Current period net profit or loss 3,110,119-3,110, Minority interests TOTAL LIABILITIES AND EQUITY 191,481, ,928, ,410,429 Note: The prior period financial statements and related disclosures are not restated as permitted by TFRS 9 transition rules. Since, 2017 and 2018 financial statements are prepared on different principles, 2017 financial statements are presented separately. The accompanying explanations and notes form an integral part of these financial statements. 9

15 UNCONSOLIDATED BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) AS AT DECEMBER 31, 2017 Audited Prior Period December 31, 2017 LIABILITIES AND EQUITY Notes TL FC Total I. DEPOSITS V-II-1 103,532,624 51,744, ,277, Deposits of risk group 2,815, ,060 3,033, Other deposits 100,716,753 51,526, ,243,191 II. DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING PURPOSE V-II-2 1,015, ,927 1,184,530 III. FUNDS BORROWED V-II-3 668,532 27,639,089 28,307,621 IV. INTERBANK MONEY MARKET 18,699,026 3,571,811 22,270, Interbank money market takings 11,662,376 1,631,693 13,294, Istanbul Stock Exchange money market takings Obligations under repurchase agreements 7,036,650 1,940,118 8,976,768 V. SECURITIES ISSUED (Net) V-II-3 6,443,119 13,041,979 19,485, Bills 3,566,573-3,566, Asset backed securities Bonds 2,876,546 13,041,979 15,918,525 VI. FUNDS 3,206-3, Funds against borrower s note Other 3,206-3,206 VII. MISCELLANEOUS PAYABLES 6,050, ,105 6,848,328 VIII. OTHER EXTERNAL RESOURCES PAYABLE V-II-4 860,160 2,977,406 3,837,566 IX. FACTORING PAYABLES X. LEASE PAYABLES (Net) V-II Finance lease payables Operational lease payables Other Deferred finance leasing expenses ( - ) XI. DERIVATIVE FINANCIAL LIABILITIES HELD FOR RISK MANAGEMENT PURPOSE Fair value hedges Cash flow hedges Hedges of net investment in foreign operations XII. PROVISIONS V-II-7 3,395,373 17,109 3,412, General provisions 1,872,826 12,667 1,885, Restructuring reserves Reserve for employee benefits 821, , Insurance technical provisions (Net) Other provisions 700,728 4, ,170 XIII. TAX LIABILITIES 702,784 48, , Current tax liabilities V-II-8 636, , Deferred tax liabilities 66,056 47, ,735 XIV. PAYABLES FOR ASSETS HELD FOR SALE AND ASSETS RELATED TO V-II-9 DISCONTINUED OPERATIONS (Net) Payables related to the assets held for sale Payables related to the discontinued operations XV. SUBORDINATED LOANS V-II ,188 5,407,781 5,935,969 XVI. EQUITY V-II-11 23,061, ,883 23,257, Paid-in capital V-II-11 2,500,000-2,500, Capital reserves 2,542, ,883 2,738, Share premium 723, , Share cancellation profits Valuation differences of the marketable securities V-II , ,883 1,072, Revaluation surplus on tangible assets 873, , Revaluation surplus on intangible assets Revaluation surplus on investment properties Bonus shares of associates, subsidiaries and joint-ventures 91,823-91, Hedging reserves (effective portion) Revaluation surplus on assets held for sale and assets related to the discontinued operations Other capital reserves (23,265) - (23,265) 16.3 Profit reserves 14,296,045-14,296, Legal reserves 1,635,332-1,635, Status reserves Extraordinary reserves 12,210,313-12,210, Other profit reserves 450, , Profit or loss 3,723,383-3,723, Prior years profit/loss Current period s profit/loss 3,723,383-3,723,383 TOTAL LIABILITIES AND EQUITY 164,960, ,610, ,571,710 Note: The prior period financial statements and related disclosures are not restated as permitted by TFRS 9 transition rules. Since, 2017 and 2018 financial statements are prepared on different principles, 2017 financial statements are presented separately. The accompanying explanations and notes form an integral part of these financial statements. 10

16 UNCONSOLIDATED OFF-BALANCE SHEET ITEMS AS AT SEPTEMBER 30, 2018 Reviewed Current Period September 30, 2018 Notes TL FC Total A. OFF-BALANCE SHEET COMMITMENTS AND CONTINGENCIES (I+II+III) 98,921, ,691, ,613,789 I. GUARANTEES AND SURETIES V-III ,196,248 32,084,724 72,280, Letters of guarantee 40,104,048 15,573,603 55,677, Guarantees subject to State Tender Law 4,763,767 6,454,106 11,217, Guarantees given for foreign trade operations 1,395,757-1,395, Other letters of guarantee 33,944,524 9,119,497 43,064, Bank acceptances 68,258 3,114,667 3,182, Import letter of acceptance - 770, , Other bank acceptances 68,258 2,344,607 2,412, Letters of credit 23,942 13,344,210 13,368, Documentary letters of credit 23,942 13,344,210 13,368, Other letters of credit Pre-financing given as guarantee - 4,772 4, Endorsements Endorsements to the Central Bank of Republic of Turkey Other endorsements Purchase guarantees for Securities issued Factoring guarantees Other guarantees - 44,209 44, Other warrantees - 3,263 3,263 II. COMMITMENTS 36,595,356 30,437,435 67,032, Irrevocable commitments 32,400,654 2,098,799 34,499, Asset purchase and sales commitments V-III-1 749,282 2,098,799 2,848, Deposit purchase and sales commitments Share capital commitments to associates and subsidiaries V-III-1 2,250-2, Loan granting commitments V-III-1 13,978,240-13,978, Securities issuance brokerage commitments Commitments for reserve deposit requirements Commitments for checks payments V-III-1 2,859,606-2,859, Tax and fund liabilities from export commitments Commitments for credit card expenditure limits V-III-1 13,085,415-13,085, Commitments for credit cards and banking services promotions 701, , Receivables from short sale commitments of marketable securities Payables for short sale commitments of marketable securities Other irrevocable commitments 1,023,863-1,023, Revocable commitments 4,194,702 28,338,636 32,533, Revocable loan granting commitments 4,194,702 28,338,636 32,533, Other revocable commitments III. DERIVATIVE FINANCIAL INSTRUMENTS 22,130, ,169, ,300, Derivative financial instruments held for hedging Fair value hedges Cash flow hedges Hedges for investments made in foreign countries Trading transactions 22,130, ,169, ,300, Forward foreign currency purchase and sale transactions 1,841,633 2,648,793 4,490, Forward foreign currency purchase transactions 922,030 1,324,499 2,246, Forward foreign currency sales 919,603 1,324,294 2,243, Currency and interest rate swaps 12,858,692 82,890,156 95,748, Currency swap purchase transactions 2,651,277 21,294,957 23,946, Currency swap sale transactions 7,667,415 11,512,810 19,180, Interest rate swap purchase transactions 1,270,000 25,041,195 26,311, Interest rate swap sale transactions 1,270,000 25,041,194 26,311, Currency, interest rate and security options 617,960 1,629,992 2,247, Currency purchase options 428, ,518 1,098, Currency sale options 189, ,474 1,149, Interest rate purchase options Interest rate sale options Security purchase options Security sale options Currency futures Currency purchases futures Currency sales futures Interest rate futures Interest rate purchases futures Interest rate sales futures Other 6,812,061 15,000,739 21,812,800 B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) 1,526,847,894 1,363,384,603 2,890,232,497 IV. ITEMS HELD IN CUSTODY 54,756,181 4,028,285 58,784, Assets under management Securities held in custody 42,089, ,497 42,420, Checks received for collection 9,755,786 1,282,794 11,038, Commercial notes received for collection 1,524, ,802 2,293, Other assets received for collection 2, , Securities received for public offering Other items under custody , , Custodians 1,384,263 1,541,752 2,926,015 V. PLEDGED ITEMS 423,510, ,320, ,830, Marketable securities 315,005 8, , Guarantee notes 645, ,015 1,487, Commodity 33,105,640 1,398,301 34,503, Warrant Immovables 337,000, ,016, ,016, Other pledged items 51,498,989 41,685,506 93,184, Depositories receiving pledged items 944, ,110 1,314,980 VI. ACCEPTED GUARANTEES AND WARRANTEES 1,048,581,706 1,132,035,527 2,180,617,233 TOTAL OFF BALANCE SHEET COMMITMENTS (A+B) 1,625,769,844 1,528,076,442 3,153,846,286 Note: The prior period financial statements and related disclosures are not restated as permitted by TFRS 9 transition rules. Since, 2017 and 2018 financial statements are prepared on different principles, 2017 financial statements are presented separately. The accompanying explanations and notes form an integral part of these financial statements. 11

17 UNCONSOLIDATED OFF-BALANCE SHEET ITEMS AS AT DECEMBER 31, 2017 Audited Prior Period December 31, 2017 Notes TL FC Total A. OFF-BALANCE SHEET COMMITMENTS AND CONTINGENCIES (I+II+III) 80,248,423 79,578, ,827,135 I. GUARANTEES AND SURETIES V-III ,109,922 18,657,662 50,767, Letters of guarantee 32,035,061 8,133,759 40,168, Guarantees subject to State Tender Law 3,163,898 4,099,756 7,263, Guarantees given for foreign trade operations 1,053,872-1,053, Other letters of guarantee 27,817,291 4,034,003 31,851, Bank acceptances 44,700 1,510,854 1,555, Import letter of acceptance , , Other bank acceptances 44, ,455 1,035, Letters of credit 30,161 8,963,991 8,994, Documentary letters of credit 30,161 8,963,991 8,994, Other letters of credit Guaranteed pre-financings - 3,006 3, Endorsements Endorsements to the Central Bank of the Republic of Turkey Other endorsements Marketable securities underwriting commitments Factoring related guarantees Other guarantees - 43,996 43, Other sureties - 2,056 2,056 II. COMMITMENTS 31,039,233 17,286,799 48,326, Irrevocable commitments 27,979, ,190 28,940, Asset purchase commitments V-III-1 793, ,190 1,755, Deposit purchase and sales commitments Share capital commitments to associates and subsidiaries V-III Loan granting commitments V-III-1 11,843,577-11,843, Securities issuance brokerage commitments Commitments for reserve deposit requirements Commitments for cheque payments V-III-1 2,542,741-2,542, Tax and fund obligations on export commitments Commitments for credit card limits V-III-1 10,534,862-10,534, Commitments for credit card and banking operations promotions 761, , Receivables from "short" sale commitments on securities Payables from "short" sale commitments on securities Other irrevocable commitments 1,502,825-1,502, Revocable commitments 3,059,575 16,325,609 19,385, Revocable loan granting commitments 3,059,575 16,325,609 19,385, Other revocable commitments III. DERIVATIVE FINANCIAL INSTRUMENTS 17,099,268 43,634,251 60,733, Derivative financial instruments held for risk management Fair value hedges Cash flow hedges Net foreign investment hedges Trading derivatives 17,099,268 43,634,251 60,733, Forward foreign currency purchases/sales 1,152,837 1,617,661 2,770, Forward foreign currency purchases 576, ,889 1,385, Forward foreign currency sales 576, ,772 1,384, Currency and interest rate swaps 10,344,359 30,420,079 40,764, Currency swaps-purchases 3,297,551 11,363,303 14,660, Currency swaps-sales 4,706,808 4,435,680 9,142, Interest rate swaps-purchases 1,170,000 7,310,548 8,480, Interest rate swaps-sales 1,170,000 7,310,548 8,480, Currency, interest rate and security options 426, , , Currency call options 412,706 13, , Currency put options 13, , , Interest rate call options Interest rate put options Security call options Security put options Currency futures Currency futures-purchases Currency futures-sales Interest rate futures Interest rate futures-purchases Interest rate futures-sales Other 5,175,978 11,164,969 16,340,947 B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) 1,283,071, ,680,121 2,088,751,698 IV. ITEMS HELD IN CUSTODY 54,525,860 4,245,640 58,771, Customers' securities held Investment securities held in custody 42,177, ,880 42,313, Checks received for collection 9,976,508 2,483,954 12,460, Commercial notes received for collection 1,178, ,078 1,590, Other assets received for collection 2, , Assets received through public offering Other items under custody ,380 76, Custodians 1,190,884 1,137,197 2,328,081 V. PLEDGED ITEMS 315,422, ,707, ,130, Securities 739,672 5, , Guarantee notes 707, ,748 1,232, Commodities 33,014, ,683 33,774, Warranties Real estates 240,511, ,037, ,548, Other pledged items 39,688,651 23,254,495 62,943, Pledged items-depository 761, , ,200 VI. CONFIRMED BILLS OF EXCHANGE AND SURETIES 913,123, ,727,129 1,581,850,163 TOTAL OFF-BALANCE SHEET ITEMS (A+B) 1,363,320, ,258,833 2,248,578,833 Note: The prior period financial statements and related disclosures are not restated as permitted by TFRS 9 transition rules. Since, 2017 and 2018 financial statements are prepared on different principles, 2017 financial statements are presented separately. The accompanying explanations and notes form an integral part of these financial statements. 12

18 UNCONSOLIDATED STATEMENT OF PROFIT OR LOSS Reviewed Current Period January 1, September 30, 2018 Reviewed Current Period July 1, September 30,2018 Notes I. INTEREST INCOME V-IV-1 23,477,670 9,848, Interest on loans V-IV-1 19,492,247 7,691, Interest received from reserve deposits 274, , Interest received from banks V-IV-1 113,824 62, Interest received from money market transactions 18, Interest received from marketable securities portfolio V-IV-1 3,574,731 1,988, Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income 635, , Financial assets measured at amortised cost 2,939,180 1,663, Finance lease income Other interest income 3, II. INTEREST EXPENSES 15,227,550 6,476, Interest on deposits V-IV-2 10,276,251 4,342, Interest on funds borrowed V-IV-2 898, , Interest on money market transactions 2,122, , Interest on securities issued V-IV-2 1,520, , Other interest expenses 410, ,845 III. NET INTEREST INCOME/EXPENSE (I - II) 8,250,120 3,372,167 IV. NET FEES AND COMMISSIONS INCOME/EXPENSES 1,555, , Fees and commissions received 2,224, , Non-cash loans 325, , Other 1,898, , Fees and commissions paid 668, , Non-cash loans Other 668, ,016 V. PERSONNEL EXPENSES (-) 1,608, ,928 VI. DIVIDEND INCOME 129,584 12,137 VII. TRADING PROFIT/LOSS (Net) V-IV-3 578, , Profit/losses from capital market transactions V-IV-3 143,756 86, Profit/losses from derivative financial transactions V-IV-3 480, , Foreign exchange profit/losses V-IV-3 (45,088) (46,527) VIII. OTHER OPERATING INCOME V-IV-4 1,180, ,865 IX. GROSS PROFIT FROM OPERATING ACTIVITIES (III+IV+V+VI+VII+VIII) 10,085,736 4,074,108 X. ALLOWANCES FOR EXPECTED CREDIT LOSSES (-) V-IV-5 3,923,648 2,133,876 XI. OTHER OPERATING EXPENSES (-) V-IV-6 2,342, ,133 XII. NET OPERATING PROFIT/LOSS (IX-X-XI) 3,819,268 1,161,099 XIII. SURPLUS WRITTEN AS GAIN AFTER MERGER - - XIV. PROFIT/LOSS FROM EQUITY METHOD APPLIED SUBSIDIARIES - - XV. NET MONETORY POSITION GAIN/LOSS - - XVI. PROFIT/LOSS BEFORE TAXES FROM CONTINUING OPERATIONS (XII+...+XV) V-IV-7 3,819,268 1,161,099 XVII. PROVISION FOR TAXES ON INCOME FROM CONTINUING OPERATIONS (±) V-IV-10 (709,149) (176,241) 17.1 Current tax provision V-IV-10 (55,555) 461, Expense effect of deferred tax (+) (1,104,863) (858,222) 17.3 Income effect of deferred tax (-) 451, ,228 XIII. NET PROFIT/LOSS FROM CONTINUING OPERATIONS (XVI±XVII) V-IV-9 3,110, ,858 XIX. INCOME FROM DISCONTINUED OPERATIONS Income from assets held for sale Profit from sale of associates, subsidiaries and joint ventures Other income from discontinued operations - - XX. EXPENSES FROM DISCONTINUED OPERATIONS (-) Expenses on assets held for sale Losses from sale of associates, subsidiaries and joint ventures Other expenses from discontinued operations - - XXI. PROFIT/LOSS BEFORE TAXES FROM DISCONTINUED OPERATIONS (±) (XIX-XX) - - XXII. TAX PROVISION FOR DISCONTINUED OPERATIONS (±) Current tax provision Expense effect of deferred tax (+) Income effect of deferred tax (-) - - XXIII. NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XXI±XXII) - - XXIV. NET PROFIT/LOSSES (XVIII+XXIII) V-IV-11 3,110, ,858 Profit/Loss per 100 shares (full TL) Note: The prior period financial statements and related disclosures are not restated as permitted by TFRS 9 transition rules. Since, 2017 and 2018 financial statements are prepared on different principles, 2017 financial statements are presented separately The accompanying explanations and notes form an integral part of these financial statements. 13

19 UNCONSOLIDATED STATEMENT OF INCOME FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2017 Reviewed Prior Period January 1, September 30, 2017 Reviewed Prior Period July 1, September 30,2017 Notes I. INTEREST INCOME V-IV-1 15,282,787 5,285, Interest income from loans V-IV-1 13,038,803 4,754, Interest income from reserve deposits 155,913 61, Interest income from banks V-IV-1 32,059 15, Interest income from money market transactions 26,570 4, Interest income from securities portfolio V-IV-1 2,026, , Trading financial assets Financial assets designated at fair value through profit or loss Available-for-sale financial assets 1,276, , Held-to-maturity investments 750, , Finance lease income Other interest income 2, II. INTEREST EXPENSE 8,980,266 3,481, Interest expense on deposits V-IV-2 6,538,269 2,585, Interest expense on funds borrowed V-IV-2 473, , Interest expense on money market transactions 1,009, , Interest expense on securities issued V-IV-2 685, , Other interest expenses 273,136 87,067 III. NET INTEREST INCOME (I II) 6,302,521 1,804,381 IV. NET FEES AND COMMISSIONS INCOME 958, , Fees and commissions received 1,440, , Non-cash loans 216,574 76, Others 1,223, , Fees and commissions paid 481, , Non-cash loans Others 481, ,689 V. DIVIDEND INCOME 93,501 29,936 VI. TRADING INCOME/LOSSES (Net) V-IV-3 122,949 4, Trading account income/losses V-IV-3 55,712 13, Income/losses from derivative financial instruments V-IV-3 (68,539) (34,545) 6.3 Foreign exchange gains/losses V-IV-3 135,776 25,034 VII. OTHER OPERATING INCOME V-IV-4 1,182, ,208 VIII. TOTAL OPERATING PROFIT (III+IV+V+VI+VII) 8,660,306 2,556,882 IX. PROVISION FOR LOSSES ON LOANS AND OTHER RECEIVABLES (-) V-IV-5 1,919, ,945 X. OTHER OPERATING EXPENSES (-) V-IV-6 3,217,881 1,123,659 XI. NET OPERATING PROFIT/LOSS (VIII-IX-X) 3,522, ,278 XII. INCOME RESULTED FROM MERGERS - - XIII. INCOME/LOSS FROM INVESTMENTS UNDER EQUITY ACCOUNTING - - XIV. GAIN/LOSS ON NET MONETARY POSITION - - XV. INCOME/LOSS FROM CONTINUING OPERATIONS BEFORE TAXES (XI+ +XIV) V-IV-7 3,522, ,278 XVI. CONTINUING OPERATIONS PROVISION FOR TAXES V-IV-10 (700,458) (164,604) 16.1 Current tax charges V-IV-10 (562,068) (109,042) 16.2 Deferred tax credits (138,390) (55,562) XVII. NET INCOME/LOSS AFTER TAXES FROM CONTINUING OPERATIONS (XV±XVI) V-IV-9 2,822, ,674 XVIII. INCOME FROM DISCONTINUED OPERATIONS Income from investment properties Income from sales of subsidiaries, affiliates and joint-ventures Other income from discontinued activities - - XIX. EXPENSES FROM DISCONTINUED OPERATIONS(-) Investment property expenses Losses from sales of subsidiaries, affiliates and joint ventures Other expenses from discontinued activities - - XX. INCOME/LOSS FROM DISCONTINUED OPERATIONS BEFORE TAXES(XVIII-XIX) - - XXI. DISCONTINUED OPERATIONS PROVISION FOR TAXES(±) Current tax charge Deferred tax charge - - XXII. NET INCOME/LOSS AFTER TAXES FROM DISCONTINUED OPERATIONS(XX±XXI) - - XXIII. NET PROFIT/LOSS (XVI+XXII) V-IV-11 2,822, ,674 Profit/Loss per 100 shares (full TL) Note: The prior period financial statements and related disclosures are not restated as permitted by TFRS 9 transition rules. Since, 2017 and 2018 financial statements are prepared on different principles, 2017 financial statements are presented separately The accompanying explanations and notes form an integral part of these financial statements. 14