PASHA_BANK ANNUAL REPORT 2021

(Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) (Convenience Translation of Publicly Announced Financial Statements Originally Issued in Turkish, See Note I of Section Three) PASHA Yatırım Bank A.Ş. Notes to Unconsolidated Financial Statements At 31 December 2021 General Information Remarks on Financial Information and Risk Management Information on Management and Corporate Governance Practices INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT (Continued) Current Period Prior Period Additional Tier 1 capital: instruments Directly issued qualifying Additional Tier 1 instruments plus related stock surplus of which: classified as equity under applicable accounting standards - - Directly issued qualifying Additional Tier 1 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards - - Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group AT1) of which: instruments issued by subsidiaries subject to phase out - - Additional Tier 1 capital before regulatory adjustments - - Additional Tier 1 capital: regulatory adjustments Investments in own Additional Tier 1 instruments - - Reciprocal cross-holdings in Additional Tier 1 instruments - - Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10% threshold) - - Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) - - National specific regulatory adjustments - - The process of transition will continue to reduce from Tier 1 Capital Goodwill or other intangibles and deferred tax liabilities of which the regulation concerning transitional Article 2 of subsection of core capital not reduced from (-) - - Net deferred tax asset/liability which is not deducted from Common Equity Tier 1 capital for the purposes of the sub-paragraph of the Provisional Article 2 of the Regulation on Banks’ Own Funds (-) - - Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions(-) - - Total regulatory adjustments to Additional Tier 1 capital - - Additional Tier 1 capital (AT1) - - Tier 1 capital (T1 = CET1 + AT1) 599,704 556,836 Tier 2 capital: instruments and provisions Directly issued qualifying Tier 2 instruments plus related stock surplus - - Directly issued qualifying Tier 2 instruments plus related stock surplus - - Provisions 46,431 27,738 Tier 2 capital before regulatory adjustments 46,431 27,738 Tier 2 capital: regulatory adjustments Investments in own Tier 2 instruments (-) - - Reciprocal cross-holdings in Tier 2 instruments - - Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued common share capital of the entity (amount above the 10% threshold) (-) - - Significant investments in the capital banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) - - National specific regulatory adjustments (-) - - Total regulatory adjustments to Tier 2 capital - - Tier 2 capital (T2) 46,431 27,738 Total capital (TC = T1 + T2) 646,135 584,574 Total risk weighted assets - - Loans extended being non-compliant with articles 50 and 51 of the Law - - Portion of the sum of the banks’ real estate net book values, which is in excess of fifty per cent of their own funds and net book values of those of merchandise and real estate which have to be acquired due to their receivables and disposed of pursuant to Article 57 of the Banking Law, which cannot be disposed of despite the lapse of a period of five years since the date of such acquisition(-) - - National specific regulatory adjustments - - The process of transition will continue to reduce from Common Equity Tier 1 capital and Additional Tier 1 capital of which: The sum of partnership share on banks and financial institutions (domestic and abroad), with shareholding of less than 10% - - of which: Partnership share on banks and financial institutions (domestic and abroad) that are not consolidated, with a shareholding of 10% and above - - of which: Partnership share on banks and financial institutions (domestic and abroad) that are not consolidated, with a shareholding of 10% and above - -