PASHA_BANK ANNUAL REPORT 2021

145 Annual Report 2021 PASHA Bank (Convenience Translation of Publicly Announced Financial Statements Originally Issued in Turkish, See Note I of Section Three) (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) PASHA Yatırım Bank A.Ş. Notes to Unconsolidated Financial Statements At 31 December 2021 INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT (Continued) Current Period Prior Period Shareholders’ Equity Total shareholders’ equity 646,135 584,574 Total risk weighted items 3,714,502 2,219,041 CAPITAL ADEQUACY RATIOS Core Capital Adequacy Ratio (%) 16.14 25.09 Tier 1 Capital Adequacy Ratio (%) 16.14 25.09 Capital Adequacy Standard Ratio (%) 17.39 26.34 BUFFERS Total additional core capital requirement ratio (a+b+c) 2.505 2.505 a) Capital conservation buffer requirement (%) 2.500 2.500 b) Bank specific countercyclical buffer requirement (%) 0.005 0.005 c) Higher bank buffer requirement ratio (%) - - Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets) (%) 8.14 17.09 Amounts below the thresholds for deduction (before risk weighting) Non-significant investments in the capital of other financials - - Significant investments in the common stock of financials - - Mortgage servicing rights (net of related tax liability) - - Deferred tax assets arising from temporary differences (net of related tax liability) - - Applicable caps on the inclusion of provisions in Tier 2 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap) 58,143 34,452 Cap on inclusion of provisions in Tier 2 under standardised approach 46,431 27,738 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) - - Cap for inclusion of provisions in Tier 2 under internal ratings-based approach - - Debt instruments subjected to Article 4 (to be implemented between January 1, 2018 and January 1, 2022) Current cap on common equity T1 capital instruments subject to phase out arrangements - - Amount excluded from common equity T1 capital due to cap (excess over cap after redemptions and maturities) - - Current cap on additional T1 capital instruments subject to phase out arrangements - - Amount excluded from additional T1 capital due to cap (excess over cap after redemptions and maturities) - - (1) Amounts for items for subject to the transition process. As a result of COVID-19 epidemic, in the calculation of the amount subject to credit risk, in accordance with the Regulation on the Measurement and Evaluation of Capital Adequacy due to the fluctuations in the financial markets, based on the press release of the BRSA on 23 March 2020 and updated with its regulation on 17 June 2021 and 16 September 2021; It has been made possible to use the simple arithmetic average of the Central Bank’s foreign exchange buying rates for the last 252 business days when calculating the amounts of monetary assets and non-monetary assets, other than items in foreign currency measured in terms of historical cost, in accordance with Turkish Accounting Standards and related special provisions. As of 31 December 2021, the Bank has not used this opportunity in its Capital Adequacy calculations.