PASHA BANK ANNUAL REPOT 2024

PAGE XXI. Explanations on government incentives 154 XXII. Explanations on profit reserves and profit distribution 154 XXIII. Explanations on earnings per share 155 XXIV. Explanations on related parties 155 XXV. Explanations on cash and cash equivalents 155 XXVI. Explanations on segment reporting 155 XXVII. Reclassifications 155 XXVIII. Explanations on other matters 155 SECTION FOUR INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT I. Information about shareholders’ equity items 155 II. Explanations on credit risk 160 III. Explanations on currency risk 175 IV. Explanations on interest rate risk 177 V. Explanations on equity position risk 180 VI. Explanations on liquidty risk and liquidity coverage ratio 181 VII. Explanations on leverage ratio 191 VIII. Explanations on the risk management 192 IX. Explanations on the presentation of financial assets and liabilities at their fair values 212 X. Explanations on the activities carried out on behalf and account of other persons 213 XI. Explanations on operating segments 214 SECTION FIVE EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS I. Explanations and notes related to assets 215 II. Explanations and notes related to liabilities 229 III. Explanations and notes related to off-balance sheet accounts 234 IV. Explanations and notes related to income statement 238 V. Explanations and notes related to statement of changes in the shareholders’ equity 242 VI. Explanations and notes related to statement of cash flows 243 VII. Explanations and notes related to the bank’s risk group 244 VIII. Explanations and notes related to the domestic, foreign, off-shore branches and foreign representatives of the bank 246 SECTION SIX OTHER EXPLANATIONS I. Other explanations related to operations of the bank 247 II. Explanations and notes related to subsequent events 247 SECTION SEVEN INDEPENDENT AUDITORS’ REPORT I. Explanations on independent auditors’ report 247 II. Explanations and notes prepared by independent auditors 247 127 Financial Information and Risk Management Review