PASHA_BANK ANNUAL REPORT 2021

General Information Remarks on Financial Information and Risk Management Information on Management and Corporate Governance Practices PAGE SECTION ONE GENERAL INFORMATION I. Bank’s foundation date, start-up statute, history about the changes in this mentioned statute 118 Ii. Explanation about the bank’s capital structure, shareholders of the bank who are in charge of the management and/or auditing of the bank directly or indirectly, changes in these matters (if any) and the group the bank belongs to 119 Iii. Explanation on the board of directors, members of the audit committee, president and executive vice presidents, changes in these matters (if any) and shares of the bank they possess 120 Iv. Explanation on shareholders having control shares 121 V. Information on the bank’s service type and field of operations 121 Vi. Existing or potential, actual or legal obstacles on immediate equity transfer between the bank and its subsidiaries or repayment of the debt 121 SECTION TWO UNCONSOLIDATED FINANCIAL STATEMENTS I. Balance sheet 122 II. Off-balance sheet 124 III. Statement of income (Profit and loss) 126 IV. Statement of profit or loss and other comprehensive income 127 V. Statement of changes in shareholders’ equity 128 VI. Statement of cash flow 130 VII. Statement of profit distribution 131 SECTION THREE EXPLANATIONS ON ACCOUNTING POLICIES I. Basis of presentation 132 Ii. Explanations on strategy of using financial instruments and foreign currency transactions 133 Iii. Explanations on forward transactions, options and derivative instruments 133 Iv. Explanations on interest income and expense 133 V. Explanations on fee and commission income and expense 134 Vi. Explanations on financial assets 134 Vii. Explanations on expected credit loss 135 Viii. Explanations on offsetting financial assets 137 Ix. Explanations on sales and repurchase agreements and securities lending transactions 137 X. Explanations on assets held for resale and fixed assets from discontinued operations and liabilities related with these assets 138 Xi. Explanations on goodwill and other intangible assets 138 Xii. Explanations on property and equipment 138 Xiii. Explanations on investment properties 139 Xiv. Explanations on leasing transactions 139 Xv. Explanations on provisions and contingent commitments 139 Xvi. Explanations on obligations related to employee rights 140 Xvii. Explanations on taxation 140 Xviii. Explanations on borrowings 141 Xix. Explanations on issuance of shares certificates 141 Xx. Explanations on avalized drafts and acceptances 141 Index