PASHA BANK ANNUAL REPOT 2024

INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT (Continued) VIII. EXPLANATIONS ON THE RISK MANAGEMENT (Continued) d. Explanations on Credit Risk (Continued) d.2) CR2 - Changes in stock of defaulted loans and debt securities Current period Prior Period 1 Beginning Balance 13,787 16,604 2 Additions 60,510 - 3 Receivables that are not re-default - - 4 Write-offs (13,807) - 5 Other changes 1 (25,222) (2,817) Ending Balance (1+2-3-4±5) 35,268 13,787 1) Includes collections from non-performing receivables, classifications to performing receivables and exchange differences. d.3) CRB - Additional explanations on credit quality of assets The Bank calculates expected loss provisions within the scope of TFRS 9, as explained in the account policies and disclosures related to impairment of financial assets and expected credit loss calculation. The Bank evaluates whether there is a significant increase in the credit risk of the financial instrument within the scope of impairment since it was first included in the financial statements. In making this assessment, it uses the change the expected default risk of the financial instruments. Loans that have overdue above 90-day in delay in the relevant month are included in the follow-up accounts and are subject to specific provisions. Refinancing or restructuring; One or more loans extended by the Bank due to financial difficulties that the customer or group is expected to be present for future, is subject to a new loan that will cover the principal or interest payment completely or partially, or the conditions in existing loans are changed to ensure that the debt can be paid. Non-Performing loans and specific provision by geographic breakdown Current Period Prior Period NPL Specific Provision Write-offs NPL Specific Provision Write-offs Domestic 35,268 26,811 - 13,787 13,787 - European countries - - - - - - OECD countries - - - - - - Off-shore banking regions - - - - - - USA, Canada - - - - - - Other countries - - - - - - Total 35,268 26,811 - 13,787 13,787 - 199 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.)