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) c. Explanations on purchase and sale of real estate and other assets, sales and purchases of services, agent contracts, financial lease agreements, transfer of data obtained from research and development, licensing agreements, financing (including loans and cash and in-kind capital support), guarantees and promissory notes, and management contracts: The Bank’s other income includes rental income amounting to TL 2,280 (31 December 2020 - TL 1,777) due to the investment property that the Bank has leased to its risk group and the Bank’s operating expense includes TL 1,084 (31 December 2020 - TL 845) of other expenses regarding the building management expenses of the risk group. VIII. EXPLANATIONS AND NOTES RELATED TO THE DOMESTIC, FOREIGN, OFF-SHORE BRANCHES AND FOREIGN REPRESENTATIVES OF THE BANK Number Number of employees Domestic Branch 1 60 Country of incorporation Foreign representation - - - Total assets Statutory share capital Foreign branch - - - - - Off-share banking region branches - - - - - SECTION SIX OTHER EXPLANATIONS AND NOTES I. OTHER EXPLANATIONS RELATED TO OPERATIONS OF THE BANK a. Explanations on ratings of the Bank FITCH December 2021 National Long Term (tur) A- Stable b. Explanations on ratings of the Bank’s compliance score of Corporate Governance Principles JCR Eurasia Rating has assigned PASHA Bank an overall compliance score of (9.23) with CMB Corporate Governance Principles by revising it upwards along with a (Stable) outlook on 8 June 2021. II. EXPLANATIONS AND NOTES RELATED TO SUBSEQUENT EVENTS The Bank issued a debt security a total amount of TL 120,000. The debt security’s issuance date was on 13 January 2022 with 70 days to maturity and has a yearly fixed rate as 22.25% with redemption date as 24 March 2022. SECTION SEVEN EXPLANATIONS ON INDEPENDENT AUDITOR’S REPORT I. EXPLANATIONS ON INDEPENDENT AUDITOR’S REPORT The unconsolidated financial statements for the year ended 31 December 2021 have been audited by Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (A member firm of Ernst&Young Global Limited) and the independent auditor’s report dated 15 February 2022 has been presented preceding the unconsolidated financial statements. II. EXPLANATIONS AND NOTES PREPARED BY INDEPENDENT AUDITOR None.