PASHA BANK ANNUAL REPOT 2024

INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT (Continued) VIII. EXPLANATIONS ON THE RISK MANAGEMENT (Continued) a. Bank’s risk management approach (Continued) Locally and internationally accepted risk models and parameters are used in the identification, measurement and monitoring of risks within the scope of risk management. The Bank strives continuously for development and improvement of internal methods and models. Forward looking risk reports prepared through regular and close monitoring of the market developments are made available for the Senior Management and the Board of Directors. In order to analyse the potential risks that the Bank may be exposed in extreme cases, various scenario analyses are performed and contingency plans are prepared. The Bank’s internal capital adequacy assessment process (“ICAAP”) has been established and the ICAAP has been performed parallel to the annual budget process on an annual basis. Moreover, various risk mitigation techniques are utilized to limit and provide protection against risks the Bank is exposed to. The effectiveness and efficiency of the risk mitigation techniques are regularly monitored. b. General view to risk weighted amounts Risk weighted amounts Minimum capital requirements Current Period Prior Period Current Period Credit risk (excluding counterparty credit risk) (CCR) 8,928,432 7,332,790 714,275 Of which standardised approach (SA) 8,928,432 7,332,790 714,275 Of which internal rating-based (IRB) approach - - - Counterparty credit risk 406,485 267,439 32,519 Of which standardised approach for counterparty credit risk (SA-CCR) 406,485 267,439 32,519 Of which internal model method (IMM) - - - Equity positions in banking book under market-based approach - - - Equity investments in funds - look-through approach - - - Equity investments in funds - mandate-based approach 96,092 90,602 7,687 Equity investments in funds - fallback approach - - - Settlement risk - - - Securitisation exposures in banking book - - - Of which IRB ratings-based approach (RBA) - - - Of which IRB Supervisory Formula Approach (SFA) - - - Of which SA/simplified supervisory formula approach (SSFA) - - - Market risk 70,538 196,413 5,643 Of which standardised approach (SA) 70,538 196,413 5,643 Of which internal model approaches (IMM) - - - Operational risk 635,904 352,699 50,872 Of which Basic Indicator Approach 635,904 352,699 50,872 Of which Standardised Approach - - - Of which Advanced Measurement Approach - - - Amounts below the thresholds for deduction (subject to 250% risk weight) - - - Floor adjustment - - - Total 10,137,451 8,239,943 810,996 193 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.)