PASHA BANK ANNUAL REPOT 2024

EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS (Continued) I. EXPLANATIONS AND NOTES RELATED TO ASSETS (Continued) vi. Information on the collection policy of non-performing loans and other receivables and information on the write-off policy of the Bank (Continued) In accordance with the Regulation on the Write-off of Loans with No Recovery Capability, implemented with the Board of Directors’ decision dated 15 February 2024, loans that are classified as “fifth group - loans classified as loss” and for which the Bank’s Legal Department determines that there is no reasonable expectation of recovery or that only a very low amount can be collected within a reasonable and specified period, are subject to write-off to the extent of the provisions allocated. The write-off of these non-recoverable loans is an accounting practice and does not result in the waiver of the receivable right. Under IFRS 9, the bank has written off loans amounting to TL 13,807 during the period (31 December 2023: None), and the impact on the non- performing loan ratio is 0.20%. 6. Information on financial assets measured at amortized cost a. Information financial assets subject to repurchase agreements and given as collateral/blocked Current Period Prior Period LC FC LC FC Collateral/Blocked - - - - Repurchase transaction 158,191 952,133 - 747,374 Total 158,191 952,133 - 747,374 b. Information on government debt securities measured at amortized cost Current Period Prior Period Government bonds 888,192 515,967 Treasury bills - - Other public sector debt securities - - Total 888,192 515,967 c. Information on financial assets measured at amortized cost Current Period Prior Period Debt Securities 1,547,029 948,264 Quoted in a stock exchange 1,547,029 948,264 Not quoted - - Impairment provisions (-) (1) - - Total 1,547,029 948,264 (1) TL 8,838 (31 December 2023 - TL 18,035) expected credit losses included at line for expected credit losses on financial statements. d. The movement of financial assets measured at amortized cost during the year Current Period Prior Period Beginning balance 948,264 456,634 Foreign currency differences on monetary assets (1) 219,442 323,032 Purchases during year 457,552 209,092 Disposals through sales and redemptions (78,229) (40,494) Impairment provisions (-) - - Total 1,547,029 948,264 (1) TL 4,459 (31 December 2023 - TL 6,334) of differences arising from the rediscounts and accruals are shown in the “Foreign currency differences on monetary assets line. 225 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.)