PASHA_BANK ANNUAL REPORT 2021

35 Annual Report 2021 PASHA Bank In order to diversify its funding sources, PASHA Bank continues to expand its investor base by providing resources with the issuance of lease certificates, in addition to the bond and bill issuances it has carried out regularly. The USD eurobonds of the bank issued in Azerbaijan are currently traded in the Baku Stock Exchange and can be used in repo‑reverse repo transactions in the Baku Stock Exchange Repo Market. In line with its boutique service approach and the strategy, PASHA Bank has limited the number of customers in order to deal with its customers more quickly and effectively and to establish a more in‑depth customer relationship. In this way, the Bank believes that it will maintain its high service quality and fast service reflex. The Bank also reviewed its processes for the protection of personal data, and standardized the related policies, procedures and practices. PASHA Bank carries out projects focusing on improving the core banking system with the aim of increasing productivity in banking processes. In this context, a series of development projects was successfully completed within the IT infrastructure, in line with enhancements to core banking applications and the principles of compliance with COBIT processes, including: · capacity increase; · renewal of virtualization infrastructure; · the establishment of a monitoring infrastructure; · backup and improvement of data transmission to the disaster recovery center. In 2021, PASHA Bank operated with a team of 60 experienced and qualified employees at its Headquarters in İstanbul. Strategic Management The strategy function is carried out under the management of the Strategy and Budget Committee which reports to the Board of Directors, in cooperation with the Balance Sheet Management Unit and the Change and Project Management Unit. The strategy function involves the processes of setting strategic priorities in line with the Bank’s vision, as well as budget preparation and monitoring according to the business plan, and the management and execution of strategic projects based on priorities in close coordination with PASHA Holding, Senior Management and relevant business units. Compliance with the strategic plan is evaluated every six months. In the 2021‑2023 strategic plan the strategic actions and projects were determined for setting 2020 goals and building the roadmap to achieve these goals, with all units working in line with the Bank’s priorities. Business plans for units were established accordingly. The Bank’s strategy was explained to the employees by the CEO. On the second half of 2021, Pasha Bank’s strategy was reviewed and updated taking into consideration the ongoing pandemic around the world, business manners that changed in line with the pandemic, digitalization, technological infrastructure, political, economic changes and collaborations within Turkey, Azerbaijan and Georgia triangle. The new strategy was shared with the Managers at the Managers Meeting on 20‑21 November 2021 and with all employees through their managers. • Cash and Non‑cash Loans, • Leasing, • Project Financing, • Treasury Products, • Foreign Trade Products • Intermediation to Issuance of Debt Instruments, • Structured Finance Products, • Corporate Finance Products, • Issuance of Asset Backed Securities • PASHA Bank Bond Sales, • Asset‑Backed Securities Sales • Repurchase Transactions in TL and Foreign Currency • Mediation of Eurobond Sales and Purchases • FX Spot and Derivative Transactions Corporate Banking Investment Banking Premium Banking