PASHA_BANK ANNUAL REPORT 2021

General Information Financial Information and Risk Management Review Information on Management and Corporate Governance Principles 2021 was a year when the health crisis caused by the pandemic and the effects of economic developments and global inflation resulting from the pandemic continued. PASHA Bank demonstrated a quick adaptation to working conditions that changed during this period. The Bank continued to support the real economy without interruption by offering the most appropriate financing alternatives for its customers’ needs parallel with the increasing competitive conditions and rapid changes in technology. In 2021, while volatility and uncertainty of foreign currency and interest rates continue, PASHA Bank provided the liquidity, products and services its customers need for the continuity of their operations in accordance with its widespread customer policy. At the same time, the Bank sustained its asset quality by supporting this policy with effective risk and liquidity management. Conducting its operations in line with its customer‑focused service approach, the Bank provided tailored financing products in 2021 such as project financing, leasing transactions, syndications and financing of foreign trade transactions, particularly for regional trade, in addition to cash and non‑cash credits for its customers’ working capital needs. PASHA Bank will continue its widespread expansion with its products and services in line with the developments in the industry and their innovative activities. The Bank will continue to provide its support for the real sector of Turkey through offering tailored financing solutions for its customers’ needs. Activities of PASHA Bank in 2021 Project Financing: Despite challenging market conditions, PASHA Bank continued to take part in financing of new projects, capacity increases in existing facilities, renovation and modernization investments in various industries, particularly in energy and tourism. Mergers and Acquisitions Financing: PASHA Bank mediated its first acquisition financing in 2021. PASHA Bank increased its credit amount in project financing, including mergers and acquisitions financing by 20% in comparison with prior year. Leasing (Sale and Leaseback Transactions): In accordance with its strategy, PASHA Bank continued to intermediate in Sale and Leaseback transactions by transferring real estates of companies to the Bank for a specified period to meet their financing needs. With more focus on this area in 2021, the Bank increased its leasing loans by 90%.