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) s. Movements in value adjustments and provisions Current Period Opening Balance Provision for Period Provision Reversals Other Adjustments Closing Balance Specific provisions (Stage 3) 19,831 6,792 (1,106) - 25,517 General provisions (Stage 1&2) 34,452 30,667 (6,976) - 58,143 Prior Period Opening Balance Provision for Period Provision Reversals Other Adjustments Closing Balance Specific provisions (Stage 3) 22,279 - (2,448) - 19,831 General provisions (Stage 1&2) 34,015 4,520 (4,083) - 34,452 t. Risk involved in counter-cyclical capital buffer calculation The breakdown of private sector receivables by geographic area which considered in the calculation of counter-cyclical capital buffer in accordance with ‘Capital Conservation and Countercyclical Capital buffers’ published in official gazette dated 5 November 2013 and numbered 28812 and the sub-regulations are provided in the table below: Current Period Country Banking book for private sector lending RWAs of trading book Total Turkey 2,782,544 - 2,782,544 Montenegro 464,149 - 464,149 Azerbaijan 215,116 - 215,116 United States of America 15,936 - 15,936 Others 6,311 - 6,311 Total 3,484,056 - 3,484,056 Prior Period Country Banking book for private sector lending RWAs of trading book Total Turkey 1,649,842 - 1,649,842 Montenegro 277,974 - 277,974 Ireland 111,902 - 111,902 Azerbaijan 23,377 - 23,377 Others 40,514 - 40,514 Total 2,103,609 - 2,103,609