PASHA BANK ANNUAL REPOT 2024

INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT (Continued) VIII. EXPLANATIONS ON THE RISK MANAGEMENT (Continued) f. Issues to be announced to public related to securitisation positions The Bank does not have transactions related to securitizations, the related table has not been prepared. g. Explanations on market risk The risk principles, policies and risk limits related to the management of market risk are approved by the Board of Directors and reviewed on a regular basis. The Bank’s Senior Management performs day to day management of the market risk in accordance with the limits assigned by the Board of Directors. The Bank is exposed to market risk as a result of fluctuations in foreign exchange rates, interest rates, and market prices of stocks. Exchange rate risk and interest rate risk are evaluated as the two most important components of market risk. The Bank engages in derivative transactions for hedge purposes when found necessary. Market risk is calculated by the “standard method”. For legal reporting, standard method is utilised. The following table indicates the details of the market risk calculation, in accordance with the Market Risk Calculation principles pursuant to the Third Section of the “Regulation on Measurement and Assessment of Capital Adequacy of Banks” published in the Official Gazette no. 29511 on 23 October 2015. Current Period Prior Period RWA RWA Outright products 1 Interest rate risk (general and specific) 20,463 24,275 2 Equity risk (general and specific) - - 3 Foreign exchange risk 50,075 172,138 4 Commodity risk - - Options 5 Simplified approach - - 6 Delta-plus method - - 7 Scenario approach - - 8 Securitisation - - Total 70,538 196,413 h. Explanations on operational risk The “Basic Indicator Method” that is mentioned in “Regulation on Measurement and Assessment of Capital Adequacy of Banks” Communiqué is used in the operational risk calculation of the Bank and calculated on a yearly basis. Current Period 2 Prior Period Amount Prior Period Amount Current Period Amount Total/ Positive GI year number Ratio (%) Total Gross Revenue 147,695 327,625 542,127 339,149 15 50,872 Amount Subject to Operational Risk (Total*12,5) 635,904 Prior Period 2 Prior Period Amount Prior Period Amount Current Period Amount Total/ Positive GI year number Ratio (%) Total Gross Revenue 88,998 147,695 327,625 188,106 15 28,216 Amount Subject to Operational Risk (Total*12,5) 352,699 211 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.)