PASHA_BANK ANNUAL REPORT 2021

223 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) As of 31 December 2021, The Bank has booked TL 2,911 loss (31 December 2020 - TL 96 loss) for marketable securities valuation difference related to financial assets at fair value through other comprehensive income. 2. Amounts transferred to legal reserves According to decisions of General Assembly held on 18 March 2021, TL 31,376 prior year’s income has been transferred to legal reserves. 3. Information on distribution of profit According to decisions of General Assembly held on 18 March 2021, TL 31,376 prior year’s income has been transferred to legal reserves. No dividend distribution has been announced after the balance sheet date. 4. Information on capital increase: None. VI. EXPLANATIONS AND NOTES RELATED TO STATEMENT OF CASH FLOWS 1. Information on cash and cash equivalents Components of cash and cash equivalents and the accounting policy applied in their determination The effect of any change in the accounting policy of current period and the balance sheet recorded amounts of the components that make up cash and cash equivalents (excluding rediscount balances, reserve requirements, placements with maturity longer than 3 months and blocked accounts) are considered as cash and cash equivalents. a. Cash and cash equivalents at the beginning of the period Current Period Prior Period Cash 283,769 155,100 Cash and Foreign Currency Cash 24 14 Turkish Central Bank 283,745 155,086 Other - - Cash Equivalents 209,910 144,522 Banks 209,910 121,511 Interbank Money Market Placements - 23,011 Total Cash and Cash Equivalents 493,679 299,622 Blocked amounts on cash and cash equivalents (42,908) (2,296) Interest income rediscounts on cash and cash equivalents (632) (134) Cash equivalents with a maturity longer than three months - - Restricted reserve deposits (275,717) (133,831) Cash Flow Statements Cash and Cash Equivalents 174,422 163,361 2. Explanation about other cash flows items and the effect of changes in foreign exchange rates on cash and cash equivalents The “Other” items presented in “Net operating income before changes in operating assets and liabilities” amount to TL 18,869 (31 December 2020 - TL 17,268) mainly consists fees and commissions paid and other operating expenses excluding personnel expenses. The “Net increase/decrease in other liabilities” item under “Changes in operating assets and liabilities” amounting to TL 444 (31 December 2020 - TL 953) consists of mainly changes in prepaid expenses and other assets.