PASHA_BANK ANNUAL REPORT 2021

221 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) 5. Information on other operating income TL 8,612 of reversal of prior year specific and expected credit loss provisions included on other operating income and there is no income regarding extraordinary accounts (31 December 2020 - TL 6,531). 6. Provision expenses related to loans and other receivables Current Period Prior Period Expected Credit Loss (1) 37,459 4,520 12 Month Expected Credit Loss (Stage 1) 15,279 2,521 Significant increase in credit risk (Stage 2) 15,388 1,999 Non-Performing Loans (Stage 3) 6,792 - Marketable Securities Impairment Provision - 28 Financial Assets at Fair Value Through Profit or Loss - 28 Financial Assets At Fair Value Through Other Comprehensive Income - - Investments in Associates, Subsidiaries and Held-to-Maturity Securities Value Decrease - - Investments in Associates - - Subsidiaries - - Joint Ventures - - Other 100 - Total (2) 37,559 4,548 (1) Includes expected credit losses for the non-cash loans. (2) While considering the provision reversals included in other operating income, net provision expense is TL 28,947 (31 December 2020 - TL 2,011 net provision income). 7. Information related to other operating expenses: Current Period Prior Period Reserve for employee termination benefits (1) 540 257 Bank social aid fund deficit provision - - Fixed assets impairment expense - - Depreciation expenses of fixed assets 3,474 3,371 Intangible assets impairment expense - - Goodwill impairment expense - - Amortization expenses of intangible assets 2,690 2,066 Shares (capital method applied) impairment expense - - Impairment expense for investment securities that will be disposed - - Amortization expenses of investment securities that will be disposed - - Impairment expenses for property and equipment held for sale purpose and terminated operations - - Other operating expenses 12,663 8,550 Leasing expenses related to TFRS 16 exemptions 108 55 Maintenance expenses 2,595 1,130 Advertisement expenses 865 590 Other expenses 9,095 6,775 Loss on sales of assets 33 - Other 5,820 9,731 Total 25,220 23,975 (1) Provision expenses for unused vacation provision and employee termination benefits are presented in personnel expenses at profit and loss statement.