PASHA_BANK ANNUAL REPORT 2021

27 Annual Report 2021 PASHA Bank other hand it is returning as rising inflation due to price surge in commodities. Subsequent price increase in commodities and even historical high records at some are pushing up consumer and producer prices. But in its turn efforts with respect to monetary policy normalization, strong export performance, stimulus agenda of the government for the recovery is feeding the positive expectations going forward. Therefore, it is not a coincidence that, some international organizations are revising growth outlook of Turkey on upward side which is typically reflecting expectations on strong rebound narrative. On the back of above mentioned economic landscape, the overall banking system succeeded to maintain risks within the acceptable levels, and profitability at two‑digit territory. According to latest data, the total assets of the system in the last 12 month has increased by 51% as opposed to prior year and reached TL 9,213 billion. The same trend applies to credit portfolio. Total credits of the industry reached TL 5,205 billion with 36% increase. It is a tradition, therefore, we are proud to say that PASHA Bank as a dynamic market player keeps going on its healthy expansion. In general, continuous investments onto strengthening of internal capabilities, starting from building core competencies for managing business to increasing human capital potential of the Bank, has already demonstrated its strategic return in the form of capable navigation through the stressful times. As a result, total assets of the Bank increased by 63% to reach TL 3,563 million when compared to the same period of the prior year. Our gross cash loan and leasing receivables portfolio, comprising 68% of total assets, reached TL 2,422 million with a 62% increase. Due to effective risk management framework, and prudent credit policy pursued by the Bank we have been successful in preserving low level of NPL in our balance sheet. It is worth to underline that flexible revisiting of credit policy, adjusting tactics of credit and underwriting policy to the current realities of macroeconomic environment etc. are forming substance of the overall risk approach of the Bank. Moreover, it is worth to underline that the proactive approach of the regulator to risk management has also expanded the ability of the banks managing credit risks in a proper way. The Bank has successfully completed the strategy formulation process and the prepared strategy document with attraction of internationally well‑known consulting company has been approved by the Board of Directors. In general, the 2023 strategy rises on the foundation of values like integrity, quality, collaboration, entrepreneurship and profitability, builds up with the vision to create new and enduring values in the business world and society, focuses as the mission to become a cross‑border bank empowering its customers. New strategic period Continuation of same business segments, also with full dedication to the new initiatives Concentration on to realization of potential niche markets Delivering value to all stakeholders by yielding higher financial performance