PASHA_BANK ANNUAL REPORT 2021

207 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 EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS (Continued) iv. Information on non-performing loans based on types of borrowers III. Group IV. Group V. Group Loans with limited collectability Loans with doubtful collectability Uncollectible loans Current period (Net) - 4,649 16,281 Loans granted to real persons and legal entities (Gross) - 11,766 34,058 Provision (-) - (7,117) (17,777) Loans granted to real persons and legal entities (Net) - 4,649 16,281 Banks (Gross) - - - Provision (-) - - - Banks (Net) - - - Other loans (Gross) - - - Provision (-) - - - Other loans (Net) - - - Prior Period (Net) - - 16,246 Loans granted to real persons and legal entities (Gross) - - 36,077 Provision (-) - - (19,831) Loans granted to real persons and legal entities (Net) - - 16,246 Banks (Gross) - - - Provision (-) - - - Banks (Net) - - - Other loans (Gross) - - - Provision (-) - - - Other loans (Net) - - - v. Information on interest accruals, rediscounts, valuation differences and their provisions calculated for non-performing loans in accordance with TFRS 9 III. Group IV. Group V. Group Loans with limited collectability Loans with doubtful collectability Uncollectible loans Current period (Net) - 842 146 Interest accruals and rediscounts and valuation differences - 1,968 1,594 Provision (-) - (1,126) (1,448) Prior Period (Net) - - 82 Interest accruals and rediscounts and valuation differences - - 1,519 Provision (-) - - (1,437) vi. Information on the collection policy of non-performing loans and other receivables and information on the write-off policy of the Bank Non-performing loans and other receivables are collected through legal follow-up and liquidation of collaterals. Credits that have become losses in nature, are attached to the certificate of insolvency or insufficient collateral document, and written off from the Bank’s assets. However, if the Bank’s receivable is an insignificant amount compared to the costs and expenses to be incurred for the preparation of said documents, writing off of assets may be performed if the Board of Directors decides so.