PASHA BANK ANNUAL REPOT 2024

Total operating expenses reached TL 344 million in parallel with the expansion in the operations of the Bank. Information on investments of the Bank in 2024 was disclosed in the Independent Audit Report Section 5/ I. Notes and disclosures to asset account in balance sheet. PASHA Bank exceeded its target by 24% in total assets set for the year 2024 budget objectives. Among the key financial indicators, capital adequacy ratio was 24.1% and total assets/equity ratio was 7.3. Actions and projects supporting strategic goals are being studied by senior management through the committees they work in, reviewed by the Board of Directors and decisions are taken. Strategy and Budget Expert Group reviews the Bank’s strategy and its key pillars regularly, strategic initiatives and implementation plan is reviewed in meetings which are realized at Group level every six months. The Bank’s paid‑in‑capital amounting to TL 500 million was assessed for possibility of loss of capital within the scope of Article 376 of the Turkish Commercial Code. It was determined that there were no obstacles in front of PASHA Bank to continue its operations in a healthy manner thanks to its strong position in terms of capital adequacy ratio and debt structure and assets are at a sufficient level to meet liabilities. PASHA Bank analyzes its capital requirements in line with its strategic goals within the scope of the criteria defined in ‘‘Regulation on Banks’ Internal Systems and Internal Capital Adequacy Assessment Process’’ and ‘‘Guidance on ICAAP Report’’. Capital planning is done in accordance with ICAAP. A measurement and assessment process was established to cover risks specified within the scope of ICAAP. a. First structural pillar risks b. Second structural pillar risks that are significant and identified by the Bank. c. External risks arising from the economic environment, business environment and regulatory framework which are not covered above. 117 Information on Management and Corporate Governance Principles