PASHA BANK ANNUAL REPOT 2024

INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT (Continued) a. Information on shareholders’ equity Current Period Prior Period Common Equity Tier 1 capital Directly issued qualifying common share capital plus related stock surplus 500,000 500,000 Share premium - - Legal reserves 823,764 313,764 Projected gains to shareholders’ equity of the accounting standards in Türkiye 927 1,689 Profit 462,873 525,002 Net current period profit 462,873 525,002 Prior period profit - - Free shares from investments and associates, subsidiaries and joint ventures that is not recognised in profit - - Common Equity Tier 1 capital before regulatory adjustments 1,787,564 1,340,455 Common Equity Tier 1 capital: regulatory adjustments Prudential valuation adjustments - - Sum of current year net loss and prior period’s loss that is not covered with reserves and losses on shareholders’ equity of the accounting standards in Türkiye 12,290 12,250 Development cost of operating lease - - Goodwill (net of related tax liability) - - Other intangibles other than mortgage-servicing rights (net of related tax liability) 21,294 19,762 Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) - 161,688 Cash-flow hedge reserve - Gains and losses due to changes in own credit risk on fair valued liabilities - - Securitisation gain on sale - - Gains and losses due to changes in own credit risk on fair valued liabilities - - Defined-benefit pension fund net assets - - Investments in own shares (if not already netted off paid-in capital on reported balance sheet) - - Reciprocal cross-holdings in common equity - - Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) - - Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold) - - Mortgage servicing rights (amount above 10% threshold) - - Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability) 223,486 - Amount exceeding the 15% threshold - - of which: significant investments in the common stock of financials - - of which: mortgage servicing rights - - of which: deferred tax assets arising from temporary differences - - National specific regulatory adjustments - - Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions - - Total regulatory adjustments to Common equity Tier 1 257,070 193,700 Common Equity Tier 1 capital (CET 1) 1,530,494 1,146,755 156 PASHA Yatırım Bankası A.Ş. Notes to the Unconsolidated Financial Statements As of and for the Year Ended 31 December 2024 (Continued) PASHA Bank 2024 Annual Report (Convenience translation of publicly announced financial statements originally issued in Turkish) (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)