PASHA BANK ANNUAL REPOT 2024

Chairman’s Message testing process have also expanded the ability of the bank managing credit risks in a proper way. Regarding the latter, it has become more crucial how the Bank formulates its baseline scenario, and also how risk triggers are embedded into stress scenario framework, which ultimately end up with proper scenario formulation, advanced measurement and preparation of mitigation plan. We have entered to the first business year of the 2024-26 strategic period. In general, the 2024 strategy rises on the foundation of values like integrity, quality, collaboration, entrepreneurship and profitability, built up with the vision to create new and enduring values in the business world and society, focused as the mission to become a cross-border bank empowering its customers. It is worth to mention that strategically it has become very important to leverage on synergy opportunities in the Group, since the operations are going beyond countries and sectors, which in the end provides potential business opportunities. New strategic period in its essence is characterized with strengthening the activity of the existing business segments, also with full dedication to the new initiatives. Coming to the latter, it actually concentrated on the growth of potential niche markets. Financing investment into the real estate market in the countries of operations via the mortgage lending, investment into the venture capital in order to materialize technological return in the greater scale of the entire Group business etc. are examples in this regard. About the real estate initiative, the Bank already introduced mortgage product in the 1 st quarter of 2022 within the entire Group. Considering positive interest, the team is working with relevant stakeholders to scale it up in the coming period. In addition to diversifying its funding side, the strategic document also covered main business enablers which are actually the main assets of bank in the way of execution of the strategy. It is our privilege to state that, the proper strategy formulation has been the backbone of higher financial performance similar to the previous strategic periods. Both profit side indicators, and also expense ratios are performed positive trend yielding higher profitability for its shareholders, and stability for other stakeholders. While executing the strategy, we would continue to make substantial investments to the information technologies, risk management, credit management, fund raising, talent acquisition etc. and development of our employees that are of foremost importance. In overall, agility and know-how regarding focus sectors are expected to be the outstanding capabilities of the Bank. It is worth to mention that the operational agility of the Bank yields its return even in the core operations. Of course, we totally understand that agility may require us to invest in operational systems which in the end provide system availability, from other hand accelerate transformation towards digitalization. It is the reason that the Bank has some strategic projects in this regard. Infrastructure enhancement for digitalization and new platforms, and advanced information security for digitalization are among them. IT HAS BECOME VERY IMPORTANT TO LEVERAGE ON SYNERGY OPPORTUNITIES IN THE GROUP. synergy 30 PASHA Bank 2024 Annual Report