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 EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS (Continued) 8. Information on fees for services received from the independent auditor In accordance with the decision of the Public Oversight, Accounting and Auditing Standards Authority dated 26 March 2021, the fee information for the reporting period (excluding VAT) for the services received from the independent auditors is given in the table below Current Period Prior Period Independent audit fee 695 545 Fees for tax advisory services 129 64 Other assurance services fee - - Fees for services other than independent audit - - Total 824 609 9. Information on income/(loss) before tax from continuing or discontinued operations Profit before tax consists of net interest income/expense amounting to TL 112,915, net commission fee income amounting to TL 10,285, trading gain/loss amounting to TL 20,516, other operating income amounting to TL 11,155, provision for loan losses and other receivables amounting to TL 37,559 and other operating expenses including personnel expenses amounting to TL 53,122. 10. Information on provision for taxes from continuing or discontinued operations As of 31 December 2021 the Bank has current tax expense TL 15,635 (31 December 2020 - TL 8,744) and the Bank has deferred tax expense amounting to TL 8,463 and deferred tax income amounting to TL 7,033 (31 December 2020 - TL 641 deferred tax income and TL 2,609 deferred tax expense). As of 31 December 2021, the Bank doesn’t have any discontinued operations. 11. Information on net income/(loss) from continuing or discontinued operations The Bank doesn’t have discontinued operations. The Bank’s net profit from continuing operations amounting to TL 47,125 (31 December 2020 - TL 31,376 profit). 12. Information on net income/(loss) for the period a. If the disclosure of ordinary banking transactions and the composition of income and expense items is necessary to understand the annual performance of Bank, the composition and amount of these items None (31 December 2020 - None). b. If an accounting estimate change significantly affects the profit/loss in the current period or has a probability to significantly affect the profit/loss in the subsequent periods, the overall effect is disclosed There is no significant change in accounting estimates which would affect the current or the subsequent periods. 13. Disclosure of 20% of sub-accounts in the case of other line items exceed 10% of the income statement total Information related to other income and other expense are presented in footnote numbered 5 and footnote numbered 7 on disclosure and footnotes related to income statement, respectively. V. EXPLANATIONS AND NOTES RELATED TO STATEMENT OF CHANGES IN THE SHAREHOLDERS’ EQUITY 1. Information on financial assets at fair value through other comprehensive income “Unrealized gains and losses” arising from changes in the fair value of securities classified as financial assets at fair value through other comprehensive income are not recognized in current year income statements; they are recognized in the “Marketable securities value increase fund” account under equity, until the financial assets are sold, disposed or impaired.