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) Prior Period 0% 10% 20% 25% 35% 50% 75% 100% 150% 250% Others Total credit risk amount (after CRM and CCF) 1 Receivables from Central Governments or Central Banks 169,756 - - - - - - 45,092 - - - 214,848 2 Receivables from Regional Management or Local Governments - - - - - - - - - - - - 3 Receivables from Administrative Units or Non-commercial Ventures - - - - - - - - - - - - 4 Receivables from Multilateral Development Banks - - - - - - - - - - - - 5 Receivables from International Organizations - - - - - - - - - - - - 6 Receivables from Banks and Brokerage Corporation - - 16,699 - - 42,659 - 127,007 - - - 186,365 7 Corporate receivables - - 155,615 - - 104,512 - 1,268,283 - - 8,955 1,537,365 8 Retail receivables - - - - - - 4,755 - - - 18,061 22,816 9 Collateralized by real estate mortgages receivables - - - - - - - - - - - - 10 Collateralized by trading mortgages receivables - - - - - 61,085 - 47,084 - - - 108,169 11 Non-performing receivables - - - - - 95 - - 16,151 - - 16,246 12 Receivables defined in high risk category by BRSA - - - - - - - - - - - - 13 Securities collateralized by mortgages - - - - - - - - - - - - 14 Short-term receivables and corporate receivables from Banks and Brokerage Corp. - - 2,520 - - 13,777 - 111,252 - - - 127,549 15 Investments in nature of Collective Investment funds - - - - - - - 25,366 - - - 25,366 16 Equity security investments - - - - - - - 7,659 - - - 7,659 17 Other receivables 13,760 - - - - - - 254,379 - - - 268,139 Total 183,516 - 174,834 - - 222,128 4,755 1,886,122 16,151 - 27,016 2,514,522 e. Issues related to counterparty credit risk (CCR) The CCR strategy is determined by counterparty type and product categories. Counterparties are categorized as central counterparties, banks, corporate and commercial companies. The products are grouped as foreign exchange transactions (forward, futures, swap), interest swap transactions (interest swap, cross currency swap and futures and repo transactions. The creditworthiness of the counterparty is analyzed prior to the transactions leading to the CCR and subsequently the creditworthiness of the counter parties is reviewed at regular intervals. The frequency of inspections is increased when necessary.