PASHA BANK ANNUAL REPOT 2024

ASSESSMENTS ON THE FINANCIAL CONDITION, PROFITABILITY, DEBT SERVICING CAPABILITY AND REALIZATION OF THE DEFINED STRATEGIC OBJECTIVES PASHA Bank defined its key strategic support points to reach its targets for the three‑year strategic period, which includes 2024‑2026, as regional visibility in foreign trade, redefinition of credit products, diversified funding, guiding growth and innovation in investment banking. PASHA Bank’s total assets grew by 30% year‑over‑year to reach TL 12,193 million, due to the growth in loans. In the same period, the Bank’s liabilities increased to TL 11,138 million, and total shareholders’ equity rose to TL 1,775 million. Having attained a gross operating profit of TL 895 million according to the unconsolidated financials at the end of 2024, the Bank closed 2024 with a net period profit of TL 463 million. The total amount of cash loans and lease receivables (gross) rose by 25% year‑over‑year at the end of 2024, increasing from TL 5,642 million to TL 7,028 million, corresponding to 54% in the total assets. Non‑cash loans amounted to TL 1,319 million and the total credit risk exposure rose to TL 8,347 million with 23% increase. Cash, banks and liquid marketable securities consist of 39% of total assets. The securities portfolio, which reached TL 1,885 million with an increase of 62%, has a 15% share in total assets. The Bank’s non‑performing loans were realized as TL 35.3 million thousand and its ratio over total loans was 0.5%. The primary funding sources of the Bank are the shareholders’ equity with a 14% share, “Funds Borrowed” and “Due to Money Markets” with a 53% share, “Debt Securities Issued” with a 9% share, “Funds” with a 4% share and “Subordinated Loans” with an 7% share. Among FX-denominated debt securities issued, Eurobond issuances in Azerbaijan constitute the whole of total issuances in circulation as of the balance sheet date. Among debt securities issued and in circulation, amount of USD 25 million was issued in Azerbaijan as Eurobonds. There is a subordinated loan of USD 25 million. Funding from the risk group constitutes 22% of total funding. Normal customer relations and market conditions are considered for relations with the risk group. 116 PASHA Bank 2024 Annual Report