Vakıf Katılım Bankası Anonim Şirketi

Transcription

1 Vakıf Katılım Bankası Anonim Şirketi Publicly announced consolidated financial statements and related disclosures at September 30, 2018 together with independent auditor s limited review report (Convenience translation of publicly announced consolidated financial statements, related disclosures and auditor s limited review report originally issued in Turkish - see section three Note I)

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5 Section One General information I. History of the Parent Bank including its incorporation date, initial legal status and amendments to legal status 1 II. Shareholding structure, shareholders having direct or indirect, joint or individual control over the management of the Parent Bank and disclosures on related changes in the current year, if any 1 III. Explanation on the chairman and members of board of directors, members of audit committee, general manager and assistant general managers, their areas of responsibility and their shares in the Parent Bank, if any 1 IV. Information on the Parent Bank s qualified shareholders 2 V. Summary on the Parent Bank s service activities and field of operations 2 VI. Differences between the Communiqué on Preparation of Consolidated Financial Statements of Banks and Turkish Accounting Standards with respect to consolidation and short explanation about the institutions subject to full or proportional consolidation and institutions which are deducted from equity or not included in these three methods 2 VII. The existing or potential, actual or legal obstacles on immediate transfer of equity or reimbursement of liabilities between the Parent Bank and Its subsidiaries 2 Section Two The consolidated financial statements I Consolidated balance sheet (Statement of financial position) 4 II. Consolidated statement of off-balance sheet 8 III. Consolidated statement of profit or loss 10 IV. Consolidated statement of profit or loss and other comprehensive income 12 V. Consolidated statement of changes in shareholders equity 13 VI. Consolidated statement of cash flows 15 Section Three Accounting policies I. Explanations on basis of presentation 17 II. Explanations on strategy of using financial instruments and foreign currency transactions 18 III. Explanations on consolidated subsidiaries 18 IV. Explanations on forward, option contracts and derivative instruments 19 V. Explanations on profit share income and expenses 19 VI. Explanations on fees, commission income and expenses 20 VII. Explanations on financial assets 20 VIII. Explanations on expected credit losses 21 IX. Explanations on offsetting of financial instruments 22 X. Explanations on sale and repurchase agreements and lending of securities 23 XI. Explanations on assets held for sale and discontinued operations and liabilities related to these assets 23 XII. Explanations on goodwill and other intangible assets 23 XIII. Explanations on tangible assets 24 XIV. Explanations on leasing transactions 24 XV. Explanations on provisions and contingent liabilities 25 XVI Explanations on contingent assets 25 XVII. Explanations on liabilities regarding employee rights 25 XVIII. Explanations on taxation 26 XIX. Additional explanations on borrowings 27 XX. Explanations on issued share certificates 27 XXI. Explanations on acceptances and availed drafts 27 XXII. Explanations on government grants 27 XXIII. Explanations on segment reporting 28 XXIV. Explanations on other matters 28 Section Four Information on consolidated financial structure and risk management I. Explanations on consolidated equity 31 II. Explanations on consolidated currency risk 37 III. Explanations on consolidated position risk of equity securities in banking book 39 IV. Explanations on consolidated liquidity risk management and liquidity coverage ratio 39 V. Explanations on consolidated leverage ratio 44 VI. Explanations on consolidated risk management 45 VII. Explanations on consolidated business segments 46

6 Section Five Explanations and notes on the consolidated financial statements I Consolidated explanations and notes related to assets 47 II. Consolidated explanations and notes related to liabilities 61 III. Consolidated explanations and notes related to off-balance sheet commitments 70 IV. Consolidated explanations and notes related to the statement of income 72 V. Explanations related to the risk group of the Parent Bank 78 VI. Explanations related to subsequent events 79 Seciton Six Limited review report I. Explanations on independent auditors limited review report 79 II. Other notes and explanations prepared by the independent auditors 79 Section Seven Interim Acitivity Report I. Interim annual report including the evaluations of interim activities of the Chairman of the Board of Directors and General Manager 80

7 Section one General Information I. History of the Parent Bank Including Its Incorporation Date, Initial Legal Status and Amendments to Legal Status II. III. ( Parent Bank ) has been established in accordance with the permission of Banking Regulation and Supervision Authority dated February 27, 2015 and numbered 6205 which was published at Official Gazette dated March 3, 2015 and numbered and become a legal entity following its registration at trade registry on June 25, has obtained official authorization with resolution of Banking Regulation and Supervision Authority dated February 11, 2016 and numbered 6729 which was published at Official Gazette dated February 17, 2016 and numbered and started its Participation Banking Activities as of February 24, The Parent Bank s paid in capital is TL The headquarters of the Parent Bank is located in Istanbul. The Parent Bank, whose headquarters is located in Istanbul, provides services with its 80 branch (December 31, 2017: 63) and employees (December 31, 2017: 724). The Parent Bank together with its consolidated subsidiaries is referred to as the Group in the accompanying consolidated financial statements. Shareholding structure, shareholders having direct or indirect, joint or individual control over the management of the Parent Bank and disclosures on related changes in the current year, if any: The Parent Bank has been established as joint-stock company with its issued capital at an amount of TL As September 30, 2018, the Parent Bank's share of paid-in capital to its shareholders: September 30, 2018 December 31, 2017 Name of the Shareholders Paid in capital Share % Paid in capital Share % T.C. Başbakanlık Vakıflar Genel Müdürlüğü , ,00 Beyazid Han-ı Sani(II. Beyazit) Vakfı , ,5 0,25 Mahmud Han-ı Evvel Bin Mustafa Han(I. Mahmut) Vakfı , ,5 0,25 Mahmud Han-ı Sani Bin Abdülhamid Han-ı Evvel(II. Mahmut) Vakfı , ,5 0,25 Murad Paşa Bin Abdusselam(Murat Paşa) Vakfı , ,5 0,25 Total , ,00 Explanation on the chairman and members of board of directors, members of audit committee, general manager and assistant general managers, their areas of responsibility and their shares in the Parent Bank, if any: Ownership Title Name and Surname Administrative Function and Responsibility Educaional Degree Percentage (%) Chairman of the Board of Öztürk ORAN Directors (BOD) Chairman of BOD Bachelor - Dr. Adnan ERTEM Vice Chairman of BOD Phd - Metin KIRATLI Member of BOD Master - Members of BOD Ahmet Ercüment ÖZBEK Member of BOD and Chairman of Audit Committee Bachelor - İlhan ALBAYRAK Member of BOD Bachelor - Mustafa ERDOĞMUŞ Member of BOD and Audit Committee Bachelor - İkram GÖKTAŞ Member of BOD and General Manager Bachelor - Members of Audit Ahmet Ercüment ÖZBEK Member of BOD and Chairman of Audit Committee Bachelor - Committee Mustafa ERDOĞMUŞ Member of BOD and Audit Committee Bachelor - Ahmet OCAK Financial Affairs, Project Finance Master - Ali GÜNEY Treasury, International Banking, Strategy and Product Development Service Bachelor - Betül Vural YILMAZ Human Resources, Directorate of Education, Corporate Communications Master - Assistant General Managers Financial Analysis and Intelligence, Commercial and Bülent TABAN Corporate Loan Allocation, SME and Personal Loan Master - Allocation Erhan ÇETİNKAYA Credit and Treasury Operations, External Operations, Banking and Payment Systems Master - İrfan ŞAVİK Purchasing and Support Services, Construction and Real Estate Management Bachelor - (*) On October 17, 2018, Naci Ağbal and Osman Çelik were appointed as Member of the Board of Directors. Metin Kıratlı and Ahmet Ercüment Özbek resigned from the Board of Directors. (**) Mustafa Erdoğmuş has been appointed as Chairman of Audit Committee and Osman Çelik has been appointed as as Member of BOD on October 31, (1)

8 IV. Information on the Parent Bank s qualified shareholders: The Parent Bank s paid in capital amounting to TL consists of number of shares with a nominal value of (full) TL 0,01 for each share. TL of the paid in capital is owned by qualified shareholders who are listed below: Name/Commercial Name Share amount (nominal Share ratio (%) Paid shares Unpaid shares T.C. Başbakanlık Vakıflar Genel Müdürlüğü , V. Summary on the Parent Bank s service activities and field of operations VI. VII. The Parent Bank operates in accordance with the principles of interest-free banking as a participation bank. The Parent Bank mainly collects funds through current and profit sharing accounts, and lends such funds through corporate finance support, retail finance support, profit/loss sharing investment, profit and loss sharing investments, finance lease, financing commodity against document and joint investments. The Parent Bank classifies current and profit sharing accounts separately from other accounts in accordance with their maturities. Profit sharing accounts are classified under six different maturity groups; up to one month, up to three months (three months included), up to six months (six months included), up to one year (one year included) and one year and more than one year (with monthly, quarterly, semiannual and annual profit share payment) and accumulated participation accounts. The Parent Bank may determine the participation rates on profit and loss of profit sharing accounts according to currency type, amount and maturity groups separately under the limitation that the participation rate on loss shall not be less than fifty percent of participation rate on profit. The Parent Bank constitutes specific fund pools with minimum maturities of one month, to be allocated to individually predetermined projects for financing purposes. Profit sharing accounts, which are part of the funds collected for project financing purpose, are managed in accordance with their maturities and independently from other accounts and transfers from these accounts to any other maturity groups are not executed. Specific fund pools are liquidated at the end of the financing period. In addition to its ordinary banking activities, the Bank operates as an insurance agency on behalf of, Güneş Sigorta, Neova Sigorta, HDI Sigorta, Bereket Sigorta, Katılım Emeklilik and Vakıf Emeklilik through its branches and provides services in purchase and sale of precious metals, member business (P.O.S), credit card and debit card services, money transfer to PTT A.Ş., Vizyon Tahsilat Ve Ödeme Hizmetleri A.Ş. and Hızlıpara Odeme Hizmetleri Ve Elektronik Para A.Ş. portfolio agency service, limited custodian service and the Bank is authorized to provide order delivery and transaction agency services. The Parent Bank provides non-cash loans which mainly comprise letters of guarantee, letters of credit and acceptance credit. Transactions which can be carried out by the Parent Bank are not limited to the clauses listed above. If any activities other than those mentioned are considered as beneficial to the Bank, the application must be recommended by the Board of Directors, approved by the General Assembly and authorized by relevant legal authorities which then needs to be approved by the Ministry of Customs and Trade since such applications are amendments in nature to the Article of Association. The application is included in the Article of Association after all necessary approvals are obtained. Differences between the Communiqué on Preparation of Consolidated Financial Statements of Banks and Turkish Accounting Standards with respect to consolidation and short explanation about the institutions subject to full or proportional consolidation and institutions which are deducted from equity or not included in these three methods: Vakıf Varlık Kiralama A.Ş. and Katılım Varlık Kiralama A.Ş., the subsidiaries of the Parent Bank are fully consolidated in the consolidated financial statements of the Bank. The existing or potential, actual or legal obstacles on immediate transfer of equity or reimbursement of liabilities between the Parent Bank and its subsidiaries: There is no immediate transfer of equity between the Parent Bank and its subsidiaries. There is no existing or potential, actual or legal obstacle to the reimbursement of liabilities between the Parent Bank and its subsidiaries. (2)

9 Section two The consolidated financial statements I. Consolidated Balance Sheet (Statement of Financial Position) II. Consolidated Statement of Off-Balance Sheet III. Consolidated Statement of Profit or Loss IV. Consolidated Statement of Profit or Loss and other comprehensive income V. Consolidated Statement of Changes in Shareholders Equity VI. Consolidated Statement of Cash Flows

10 Consolidated Statement of Balance Sheet (Financial Position) ASSETS Footnote (Section- Five-I) THOUSAND TURKISH LIRA CURRENT PERIOD (30/09/2018) TL FC Total I. FINANCIAL ASSETS (Net) Cash and cash equivalents Cash and balances with central bank (1) Banks (3) Money market placements Financial assets valued at fair value through profit or loss Government debt securities Equity securities Other financial assets Financial assets valued at fair value through other comprehensive income (4) Government debt securities Equity securities Other financial assets Financial assets valued at amortised cost (6) Government debt securities Other financial assets Derivative financial assets Derivative financial assets valued at fair value through profit and loss (2) Derivative financial assets valued at fair value through other comprehensive income (11) Non-performing Financial Assets Expected Loss Provisions (-) II. LOANS (Net) (5) Loans Valued at amortised cost Valued at fair value through profit or loss Valued at fair value through other comprehensive income Lease receivables (10) Finance lease receivables Operating lease receivables Unearned income ( - ) Factoring receivables Valued at amortised cost Valued at fair value through profit or loss Valued at fair value through other comprehensive income Non-performing receivables Expected Loss Provisions (-) Expected Loss Provisions for 12 months (Stage 1) Significant increase in credit risk (Stage 2) Non-performing (Stage 3/Special Provision) III. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net) (16) Assets held for sale Assets of discontinued operations IV. SUBSIDIARY INVESTMENTS Investments in assocıates (net) (7) Valued under equity method Unconsolidated associates Investments in subsidiaries (net) (8) Unconsolidated financial subsidiaries Unconsolidated non-financial subsidiaries Joıntly controlled entities (joint ventures) (net) (9) Valued under equity method Unconsolidated associates V. TANGIBLE ASSETS (Net) (12) VI. INTANGIBLE ASSETS (Net) (13) Goodwill Other VII. INVESTMENT PROPERTY (Net) (14) VIII. CURRENT TAX ASSET IX. DEFERRED TAX ASSET (15) X. OTHER ASSETS (17) TOTAL ASSETS Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanations and notes are an integral part of these financial statements. (4)

11 Consolidated Statement of Balance Sheet (Financial Position) ASSETS Footnote (Section- Five-I) THOUSAND TURKISH LIRA PRIOR PERIOD (31/12/2017) TL FC Total I. CASH AND BALANCES WITH THE CENTRAL BANK (1) II. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (Net) Trading Financial Assets Public Sector Debt Securities Equity Securities Derivative Financial Assets Held for Trading (2) Other Marketable Securities Financial Assets at Fair Value Through Profit and Loss Public Sector Debt Securities Equity Securities Loans Other Marketable Securities III. BANKS (3) IV. MONEY MARKET PLACEMENTS V. FINANCIAL ASSETS-AVAILABLE FOR SALE (net) (4) Equity Securities Public Sector Debt Securities Other Marketable Securities VI. LOANS AND RECEIVABLES (5) Loans and Receivables Loans to Risk Group of The Bank Public Sector Debt Securities Other Non-performing loans Specific Provisions (-) VII. INVESTMENTS HELD TO MATURITY (net) (6) VIII. INVESTMENTS IN ASSOCIATES (net) (7) Accounted for under Equity Method Unconsolidated Associates Financial Associates Non-Financial Associates IX. SUBSIDIARIES (net) (8) Unconsolidated Financial Subsidiaries Unconsolidated Non-Financial Subsidiaries X. JOINT VENTURES (net) (9) Accounted for under Equity Method Unconsolidated Financial Joint Ventures Non-Financial Joint Ventures XI. LEASE RECEIVABLES (net) (10) Finance Lease Receivables Operational Lease Receivables Other Unearned Income ( - ) XII. DERIVATIVE FINANCIAL ASSETS FOR HEDGING PURPOSES (11) Fair Value Hedge Cash Flow Hedge Hedge of Net Investment Risks in Foreign Operations XIII. TANGIBLE ASSETS (net) (12) XIV. INTANGIBLE ASSETS (net) (13) Goodwill Other XV. INVESTMENT PROPERTY (net) (14) XVI. TAX ASSET (15) Current Tax Asset Deferred Tax Asset XVII. ASSETS HELD FOR SALE AND ASSETS OF DISCONTINUED OPERATIONS (Net) (16) Assets Held for Sale Assets of Discontinued Operations XVIII. OTHER ASSETS (17) TOTAL ASSETS Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanations and notes are an integral part of these financial statements. (5)

12 Consolidated Statement of Balance Sheet (Financial Position) LIABILITIES Footnote (Section Five-II) THOUSAND TURKISH LIRA CURRENT PERIOD (30/09/2018) TL FC Total I. FUNDS COLLECTED (1) II. FUNDS BORROWED (3) III. MONEY MARKET BALANCES IV. MARKETABLE SECURITIES ISSUED (Net) (4) V. FINANCIAL LIABILITIES VALUED AT FAIR VALUE THROUGH PROFIT AND LOSS VI. DERIVATIVE FINANCIAL LIABILITIES Derivative financial liabilities valued at fair value through profit and loss (2) Derivative financial liabilities valued at fair value through other comprehensive income (7) VII. LEASE LIABILITIES (6) Financial lease Operating lease Other Deferred financial lease expenses ( - ) VIII. PROVISIONS (8) Restructuring provisions Reserve for employee benefits Insurance technical reserves (Net) Other provisions IX. Current tax liability (9) X. Deferred tax liability (9) XI. LIABILITIES FOR ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Net) (10) Assets held for sale Assets of discontinued operations XII. SUBORDINATED DEBTS (11) Loans Other borrowing instruments XIII. OTHER LIABILITES (5) XIV. SHAREHOLDERS' EQUITY (12) (5.781) Paid-in capital Capital reserves Share Premium Share cancellation profits Other capital reserves Accrued other comprehensive income or expense not reclassified in profit and loss Accrued other comprehensive income or expense reclassified in profit and loss (26.954) (5.781) (32.735) 14.5 Profit reserves Legal reserves Statutory reserves Extraordinary reserves Other profit reserves Profit or loss Prior years' profit/loss (6.518) - (6.518) Current period net profit/loss Non-controlling Interest (-) TOTAL LIABILITIES Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanations and notes are an integral part of these financial statements. (6)

13 Consolidated Statement of Balance Sheet (Financial Position) LIABILITIES Footnote (Section Five-II) THOUSAND TURKISH LIRA PRIOR PERIOD (31/12/2017) TL FC Total I. FUNDS COLLECTED (1) Funds from Risk Group of The Bank Other II. DERIVATIVE FINANCIAL LIABILITIES HELD FOR TRADING (2) III. FUNDS BORROWED (3) IV. BORROWINGS FROM MONEY MARKETS V. SECURITIES ISSUED (net) (4) VI. MISCELLANEOUS PAYABLES VII. OTHER LIABILITIES (5) VIII. LEASE PAYABLES (6) Finance Lease Payables Operational Lease Payables Other Deferred Finance Lease Expenses (-) IX. DERIVATIVE FINANCIAL LIABILITIES FOR HEDGING PURPOSES (7) Fair Value Hedge Cash Flow Hedge Net Foreign Investment Hedge X. PROVISIONS (8) General Provisions Restructuring Reserves Reserve for Employee Benefits Insurance Technical Reserves (net) Other Provisions XI. TAX LIABILITY (9) Current Tax Liability Deferred Tax Liability XII. LIABILITIES FOR ASSETS HELD FOR SALE AND ASSETS OF DISCONTINUED OPERATIONS (net) (10) Assets Held for Sale Assets of Discontinued Operations XIII. SUBORDINATED LOANS (11) XIV. SHAREHOLDERS' EQUITY (12) (14) Paid-In Capital Capital Reserves (6.919) (14) (6.933) Share Premium Share Cancellation Profits Marketable Securities Valuation Reserve (7.096) (14) (7.110) Revaluation Reserve on Tangible Assets Revaluation Reserve on Intangible Assets Investment Property Revaluation Reserve Bonus Shares From Associates, Subsidiaries and Jointly Controlled Entities Hedging Funds (Effective Portion) Accumulated Valuation Differences on Assets Held For Sale and Assets of Discontinued Operations Other Capital Reserves Profit Reserves Legal Reserves Status Reserves Extraordinary Reserves Other Profit Reserves Profit or Loss Prior Years Profit / (Loss) Current Year Profit / (Loss) Minority Interest TOTAL LIABILITIES Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanations and notes are an integral part of these financial statements. (7)

14 Consolidated Statement of Off-balance Sheet STATEMENT OF OFF BALANCE SHEET Footnote (Section- Five-III) THOUSAND TURKISH LIRA CURRENT PERIOD (30/09/2018) TL FC Total A. OFF BALANCE SHEET COMMITMENTS (I+II+III) (1) I. GUARANTEES AND SURETIES Letters of Guarantees Guarantees Subject to State Tender Law Guarantees Given for Foreign Trade Operations Other Letters of Guarantee Bank Loans Import Letter of Acceptances Other Bank Acceptances Letter of Credits Documentary Letter of Credits Other Letter of Credits Prefinancing Given as Guarantee Endorsements Endorsements to the Central Bank of Turkey Other Endorsements Other Guarantees Other Collaterals II. COMMITMENTS (1) Irrevocable Commitments Asset Purchase and Sale Commitments Share Capital Commitment to Associates and Subsidiaries Loan Granting Commitments Securities Underwriting Commitments Commitments for Reserve Deposit Requirements Payment Commitment for Cheques Tax And Fund Liabilities from Export Commitments Commitments for Credit Card Expenditure Limits Commitments for Promotions Related with Credit Cards and Banking Activities Receivables From Short Sale Commitments of Marketable Securities Payables for Short Sale Commitments of Marketable Securities Other Irrevocable Commitments Revocable Commitments Revocable Loan Granting Commitments Other Revocable Commitments III. DERIVATIVE FINANCIAL INSTRUMENTS (2) Derivative Financial Instruments for Hedging Purposes Fair Value Hedge Cash Flow Hedge Hedge of Net Investment in Foreign Operations Held for Trading Transactions Forward Foreign Currency Buy/Sell Transactions Forward Foreign Currency Transactions-Buy Forward Foreign Currency Transactions-Sell Other Forward Buy/Sell Transactions Other B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) IV. ITEMS HELD IN CUSTODY Assets Under Management Investment Securities Held in Custody Cheques Received for Collection Commercial Notes Received for Collection Other Assets Received for Collection Assets Received for Public Offering Other Items Under Custody Custodians V. PLEDGED ITEMS Marketable Securities Guarantee Notes Commodity Warranty Properties Other Pledged Items Pledged Items-Depository VI. ACCEPTED INDEPENDENT GUARANTEES AND WARRANTIES TOTAL OFF BALANCE SHEET ACCOUNTS (A+B) Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanations and notes are an integral part of these financial statements. (8)

15 Consolidated Statement of Off-balance Sheet STATEMENT OF OFF BALANCE SHEET Footnote (Section- Five-III) THOUSAND TURKISH LIRA PRIOR PERIOD (31/12/2017) TL FC Total A. OFF BALANCE SHEET COMMITMENTS (I+II+III) (1) I. GUARANTEES AND SURETIES Letters of Guarantees Guarantees Subject to State Tender Law Guarantees Given for Foreign Trade Operations Other Letters of Guarantee Bank Loans Import Letter of Acceptances Other Bank Acceptances Letter of Credits Documentary Letter of Credits Other Letter of Credits Prefinancing Given as Guarantee Endorsements Endorsements to the Central Bank of Turkey Other Endorsements Other Guarantees Other Collaterals II. COMMITMENTS (1) Irrevocable Commitments Asset Purchase and Sale Commitments Share Capital Commitment to Associates and Subsidiaries Loan Granting Commitments Securities Underwriting Commitments Commitments for Reserve Deposit Requirements Payment Commitment for Cheques Tax And Fund Liabilities from Export Commitments Commitments for Credit Card Expenditure Limits Commitments for Promotions Related with Credit Cards and Banking Activities Receivables From Short Sale Commitments of Marketable Securities Payables for Short Sale Commitments of Marketable Securities Other Irrevocable Commitments Revocable Commitments Revocable Loan Granting Commitments Other Revocable Commitments III. DERIVATIVE FINANCIAL INSTRUMENTS (2) Derivative Financial Instruments for Hedging Purposes Fair Value Hedge Cash Flow Hedge Hedge of Net Investment in Foreign Operations Held for Trading Transactions Forward Foreign Currency Buy/Sell Transactions Forward Foreign Currency Transactions-Buy Forward Foreign Currency Transactions-Sell Other Forward Buy/Sell Transactions Other B. CUSTODY AND PLEDGED ITEMS (IV+V+VI) IV. ITEMS HELD IN CUSTODY Assets Under Management Investment Securities Held in Custody Cheques Received for Collection Commercial Notes Received for Collection Other Assets Received for Collection Assets Received for Public Offering Other Items Under Custody Custodians V. PLEDGED ITEMS Marketable Securities Guarantee Notes Commodity Warranty Properties Other Pledged Items Pledged Items-Depository VI. ACCEPTED INDEPENDENT GUARANTEES AND WARRANTIES TOTAL OFF BALANCE SHEET ACCOUNTS (A+B) Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanations and notes are an integral part of these financial statements. (9)

16 Consolidated Statement of Profit or loss INCOME AND EXPENSE ITEMS Footnote (Section Five-IV) THOUSAND TURKISH LIRA CURRENT PERIOD (01/01/ /09/2018) THOUSAND TURKISH LIRA CURRENT PERIOD (01/07/ /09/2018) I. PROFIT SHARE INCOME (1) Profit share on loans Profit share on reserve deposits Profit share on banks Profit share on money market placements Profit share on marketable securities portfolio Financial assets at fair value through profit and loss - (4.097) Financial assets valued at fair value through other comprehensive income Financial assets valued at amortised cost Finance lease income Other profit share income II. PROFIT SHARE EXPENSES (2) Expense on profit sharing accounts Profit share expense on funds borrowed Profit share expense on money market borrowings Expense on securities issued Other profit share expense - - III. NET PROFIT SHARE INCOME (I - II) IV. NET FEES AND COMMISSIONS INCOME Fees and commisions received Non-Cash loans Other (12) Fees and commisions paid Non-Cash loans Other (12) V. STAFF EXPENSES (-) (7) VI DIVIDEND INCOME (3) - - VII. TRADING INCOME/EXPENSES (Net) (4) Trading account income/expenses (3.206) (419) 7.2 Income/expenses from derivative financial instruments Foreign exchange gains/losses VIII. OTHER OPERATING INCOME (5) IX. TOTAL OPERATING INCOME / EXPENSE (III+IV+V+VI+VII+VIII) X. PROVISION FOR EXPECTED LOSS (-) (6) XI. OTHER OPERATING EXPENSES (-) (7) XII. NET OPERATING INCOME/EXPENSE (IX-X-XI) XIII. AMOUNT IN EXCESS RECORDED AS GAIN AFTER MERGER - - XIV. PROFIT/LOSS FROM ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD - - XV. GAIN/LOSS ON NET MONETARY POSITION - - XVI. PROFIT/LOSS ON CONTINUING OPERATIONS BEFORE TAX (XII+...+XV) (8) XVII. TAX PROVISION FOR CONTINUING OPERATIONS (±) (9) Current tax charge Deferred tax charge (+) Deferred tax credit (-) XVIII. NET PERIOD PROFIT/LOSS FROM CONTUNUING OPERATIONS (XVI±XVII) (10) XIX. INCOME ON DISCONTINUED OPERATIONS (10) Income on assets held for sale Income on sale of associates, subsidiaries and jointly controlled entities (Joint Vent.) Income on other discontinued operations - - XX. EXPENSE ON DISCONTINUED OPERATIONS (-) Expense on assets held for sale Expense on sale of associates, subsidiaries and jointly controlled entities (Joint Vent.) Expense on other discontinued operations - - XXI. PROFIT/(LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII- XIX) - - XXII. TAX PROVISION FOR DISCONTINUED OPERATIONS (±) Current tax provision Deferred tax provision (+) Deferred tax provision (-) - - XXIII. NET PROFIT/LOSS FROM DISCONTINUED OPERATIONS (XXI±XXII) - - XXIV. NET PROFIT/LOSS (XVIII+XXIII) (11) Group s Profit/Loss Minority shares (-) - - Earnings Per Share (Full TL) 0, ,00103 Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanations and notes are an integral part of these financial statements. (10)

17 Consolidated Statement of Profit or loss INCOME AND EXPENSE ITEMS Footnote (Section Five-IV) THOUSAND TURKISH LIRA PRIOR PERIOD (01/01/ /09/2017) THOUSAND TURKISH LIRA PRIOR PERIOD (01/07/ /09/2017) I. PROFIT SHARE INCOME (1) Profit Share on Loans Income Received from Reserve Deposits Income Received from Banks Income Received from Money Market Placements Income Received from Marketable Securities Portfolio Held-For-Trading Financial Assets Financial Assets at Fair Value Through Profit and Loss Available-For-Sale Financial Assets Investments Held to Maturity Finance Lease Income Other Profit Share Income II. PROFIT SHARE EXPENSE (2) Expense on Profit Sharing Accounts Profit Share Expense on Funds Borrowed Profit Share Expense on Money Market Borrowings Profit Share Expense on Securities Issued Other Profit Share Expense - - III. NET PROFIT SHARE INCOME (I II) IV. NET FEES AND COMMISSIONS INCOME/EXPENSES Fees and Commissions Received Non-Cash Loans Other (12) Fees and Commissions Paid Non-Cash Loans Other (12) V. DIVIDEND INCOME (3) - - VI. TRADING INCOME/LOSS(net) (4) Capital Market Transaction Income / (Loss) Profit / (Loss) from Derivative Financial Instruments Foreign Exchange Income / (Loss) VII. OTHER OPERATING INCOME (5) VIII. TOTAL OPERATING INCOME (III+IV+V+VI+VII) IX. PROVISION FOR LOAN LOSSES AND OTHER RECEIVABLES (-) (6) X. OTHER OPERATING EXPENSES (-) (7) XI. NET OPERATING INCOME/(LOSS) (VIII-IX-X) XII. EXCESS AMOUNT RECORDED AS GAIN AFTER MERGER - - XIII. PROFIT / (LOSS) ON EQUITY METHOD - - XIV. PROFIT / (LOSS) ON NET MONETARY POSITION - - XV. PROFIT / (LOSS) FROM CONTINUED OPERATIONS BEFORE TAXES (XI+ +XIV) (8) XVI. TAX PROVISION FOR CONTINUED OPERATIONS (±) (9) (19.876) (9.678) 16.1 Provision for Current Taxes (25.484) (10.789) 16.2 Provision for Deferred Taxes XVII. NET INCOME / (LOSS) FROM CONTINUED OPERATIONS (XV±XVI) (10) XVIII. INCOME FROM DISCONTINUED OPERATIONS (10) Income from Assets Held For Sale Income from Sale Of Associates, Subsidiaries And Jointly Controlled Entities (Joint Vent.) Income from Other Discontinued Operations - - XIX. LOSS FROM DISCONTINUED OPERATIONS (-) Loss from Assets Held for Sale Loss on Sale of Associates, Subsidiaries and Jointly Controlled Entities (Joint Vent.) Loss from Other Discontinued Operations - - XX. PROFIT / (LOSS) ON DISCONTINUED OPERATIONS BEFORE TAXES (XVIII-XIX) - - XXI. TAX PROVISION FOR DISCONTINUED OPERATIONS (±) Provision for Current Taxes Provision for Deferred Taxes - - XXII. NET PROFIT / LOSS FROM DISCONTINUED OPERATIONS (XX±XXI) - - XXIII. NET PROFIT / LOSS (XVII+XXII) (11) Group s Profit/Loss Minority shares (-) - Earnings Per Share (Full TL) 0, ,00051 Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanations and notes are an integral part of these financial statements. (11)

18 Consolidated Statement of Profit or loss and other comprehensive income PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME THOUSAND TURKISH LIRA CURRENT PERIOD (01/01/ /09/2018) I. CURRENT PERIOD INCOME/LOSS II. OTHER COMPREHENSIVE INCOME (25.615) 2.1 Not Reclassified Through Profit or Loss Property and Equipment Revaluation Increase/Decrease Intangible Assets Revaluation Increase/Decrease Defined Benefit Pension Plan Remeasurement Gain/Loss Other Comprehensive Income Items Not Reclassified Through Profit or Loss Tax Related Other Comprehensive Income Items Not Reclassified Through Profit or Loss Reclassified Through Profit or Loss (25.615) Foreign Currency Translation Differences Valuation and/or Reclassification Income/Expense of the Financial Assets at Fair Value through Other Comprehensive Income (33.488) Cash Flow Hedge Income/Loss Foreign Net Investment Hedge Income/Loss Other Comprehensive Income Items Reclassified Through Profit or Lossess Tax Related Other Comprehensive Income Items Reclassified Through Profit or Loss III. TOTAL COMPREHENSIVE INCOME (I+II) Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. STATEMENT OF INCOME AND EXPENSE ITEMS ACCOUNTED UNDER SHAREHOLDERS EQUITY THOUSAND TURKISH LIRA PRIOR PERIOD (01/01/ /09/2017) I. ADDITIONS TO MARKETABLE SECURITIES VALUATION DIFFERENCES FROM AVAILABLE FOR SALE FINANCIAL ASSETS (6.224) II. TANGIBLE ASSETS REVALUATION DIFFERENCES - III. INTANGIBLE ASSETS REVALUATION DIFFERENCES - IV. FOREIGN EXCHANGE DIFFERENCES FOR FOREIGN CURRENCY TRANSACTIONS - V. PROFIT/LOSS FROM DERIVATIVE FINANCIAL INSTRUMENTS FOR CASH FLOW HEDGE PURPOSES (EFFECTIVE PORTION OF FAIR VALUE DIFFERENCES) - VI. PROFIT/LOSS FROM DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGE OF NET INVESTMENT IN FOREIGN OPERATIONS (EFFECTIVE PORTION OF FAIR VALUE DIFFERENCES) - VII. THE EFFECT OF CORRECTIONS OF ERRORS AND CHANGES IN ACCOUNTING POLICIES - VIII. OTHER PROFIT LOSS ITEMS ACCOUNTED UNDER EQUITY IN ACCORDANCE WITH TAS - IX. DEFERRED TAX ON VALUATION DIFFERENCES X. TOTAL NET PROFIT/LOSS ACCOUNTED UNDER EQUITY (I+II+ +IX) (4.979) XI. PROFIT/LOSS Net change in Fair Value of Marketable Securities (Recycled To Profit/Loss) Part of Derivatives Designated for Cash Flow Hedge Purposes reclassified and presented in Income - Statement 11.3 Part of Hedge of Net Investments in Foreign Operations reclassified and presented in Income - Statement 11.4 Other XII. TOTAL PROFIT/LOSS ACCOUNTED FOR THE PERIOD (X±XI) Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanations and notes are an integral part of these financial statements. (12)

19 Consolidated Statement of changes in Shareholders Equity CHANGES IN SHAREHOLDERS EQUITY Paid-in Capital Effect of Inflation Accounting on Capital Share Premium Share Certificate Cancellation Profits Legal Reserves Status Reserves Extraordinary Reserves Other Reserves Current Period Net Income / (Loss) Prior Years Marketable Net Securities Income Valuation / (Loss) Reserve Tangible and Intangible Assets Revaluation Reserve Bonus Shares from Investments Hedging Reserves Accumulated Valuation Differences on Assets Held For Sale and Disc.op. Total Equity Attributable to the Parent Shareholders Paid-in Capital Effect of Inflation Accounting on Capital PRIOR PERIOD (01/01/ /09/2017) I. Beginning balance (278) Changes In Period II. Increase/Decrease Related to Merger III. Marketable Securities Valuation Differences (4.979) (4.979) - (4.979) IV. Hedging Funds (Effective Portion) Cash-Flow Hedge Hedge Of Net Investment in Foreign Operations V. Tangible Assets Revaluation Differences VI. Intangible Assets Revaluation Differences VII. Bonus Shares Obtained from Associates, Subsidiaries and Jointly Controlled Operations VIII. Foreign Exchange Differences IX. Changes Related to the Disposal Of Assets X. Changes Related to the Reclassification of Assets XI. The Effect of Change in Associate s Equity XII. Capital Increase Cash Internal Sources XIII. Share Issue Premium XIV. Share Cancellation Profits XV. Inflation Adjustment to Paid-in Capital XVI. Other XVII. Period Net Income/(Loss) XVIII Profit Distribution (19.016) (2.278) Dividends Distributed Transfers To Reserves (19.016) (2.278) Other Closing Balance (I+II+III+ +XVI+XVII+XVIII) (5.257) Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. The accompanying explanatios and notes are an integral part of these financial statements. (13)

20 Consolidated Statement of changes in Shareholders Equity CHANGES IN SHAREHOLDERS EQUITY Accumulated Other Comprehensive Income or Expense Not Reclassified through Profit or Loss Accumulated Other Comprehensive Income or Expense Reclassified through Profit or Loss CURRENT PERIOD (01/01/ /09/2018) Paid-in Capital Share Premium Share Certificate Cancellation Profits Other Capital Reserves Profit Reserves Prior Period Net Income/(Loss) Current Period Net Income / (Loss) Total equity excluded from non controlling interests Noncontrolling Interest (-) Total Shareholders' Equity I. Balances at beginning of the period (7.120) II. Correction made as per TAS 8 (*) (6.518) - (6.518) - (6.518) 2.1 Effect of corrections Effect of changes in accounting policies (6.518) - (6.518) - (6.518) III. Adjusted balances at beginning of the period (I+II) (7.120) (6.518) IV. Total Comprehensive Income (25.615) V. Capital Increase by Cash VI. Capital Increase by Internal Sources VII. Capital reserves from inflation adjustments to paid-in capital VIII. Convertible Bonds to Shares IX. Subordinated Debt Instruments X. Increase/Decrease by Other Changes (177) (177) - (177) XI. Profit distribution ( ) Dividends Transfers to reserves ( ) Others Closing Balance (III+IV+...+X+XI) (32.735) (6.518) Note: The prior period financial statements and related disclosures are not presented comperatively with the current period financial statements as they are not restated as permitted by TFRS 9 transition rules. The prior period financial statements are presented with their prior reported versions. 1. Revaluation surplus on tangible and intangible assets 2. Defined Benefit Plans' Actuarial Gains/Losses 3. Other (Accumulated amounts of share of investments accounted for by the equity method that can not be classified as profit / loss from other comprehensive income with other comprehensive income that will not be reclassified to other profit or loss) 4. Foreign Currency Translation Differences 5. Income/Expenses from Valuation and/or Reclassification of Financial Assets Measured at FVOCI 6. Other (Accumulated amount of cash flow hedge gains / losses, equity attributable to equity holders of the Group for profit or loss from other comprehensive income and other comprehensive income to be reclassified to other profit or loss) The accompanying explanations and notes are an integral part of these financial statements. (14)