PASHA BANK ANNUAL REPOT 2024

INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT (Continued) III. EXPLANATIONS ON CURRENCY RISK The Bank’s foreign currency position is managed within the limits set by legislation and the Bank. The basic principle in foreign currency risk management is not to be exposed to currency risk. Accordingly, the exchange-trading risk positions are not allocated to the limit, banking accounts as of the currency by creating a matched asset-liability structure is aimed to provide natural protection. The Bank uses derivative financial instruments such as forward foreign exchange contracts and currency swaps for hedging purposes in foreign currency denominated transactions. Bank’s methodology of digitising the foreign currency position includes the use of standard method when calculating the capital adequacy ratio and application of internal stress tests/sensitivity analysis. The Bank’s publicly announced foreign exchange bid rates as of the date of the financial statements and for the last five business days prior to that date: (Full TL) USD EUR Foreign exchange rates as of 31 December 2024 35.2803 36.7362 1. Bid rate 35.2233 36.7429 2. Bid rate 35.1368 36.6134 3. Bid rate 35.2033 36.6076 4. Bid rate 35.2162 36.6592 5. Bid rate 35.1814 36.5693 Arithmetic average - 30 days 34.9254 36.5796 Foreign exchange rates as of prior period 29.4382 32.5739 Foreign Exchange Sensitivity Analysis The effects (excluding tax effects) of 10% change of TL against the foreign currencies below on the equity and profit or loss are presented below. This analysis assumes that all other variables, in particular interest rates, remain constant. Change in Currency Rate Effect on Profit and Loss Effect on Equity Current Period Prior Period Current Period Prior Period USD 10% decrease (2,307) (7,351) (2,307) (7,351) USD 10% increase 2,307 7,351 2,307 7,351 EUR 10% decrease (2,504) (4,680) (2,606) (4,680) EUR 10% increase 2,504 4,680 2,606 4,680 175 Financial Information and Risk Management Review PASHA Yatırım Bankası A.Ş. Notes to the Unconsolidated Financial Statements As of and for the Year Ended 31 December 2024 (Continued) (Convenience translation of publicly announced financial statements originally issued in Turkish) (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)