PASHA BANK ANNUAL REPOT 2024

CORPORATE AND COMMERCIAL BANKING OPERATIONS Corporate and Commercial Banking Operations Project Financing Credits Despite challenging market conditions, PASHA Bank continued to take part in financing of new projects, capacity increases in existing facilities, renovation and modernization investments in various industries, particularly in renewable energy. Forfaiting PASHA Bank continued to provide financing to meet liquidity needs of exporter companies in 2023 with an increased appetite, by transferring the receivables, not yet due, from export transactions to the Bank without recourse. Leasing In line with its strategy, PASHA Bank continued to provide financing in 2024 without interruption through Sell & Lease Back and Leasing Financing models, increasing its transaction volume compared to the previous year. In the Leasing Financing model, movable/immovable assets are purchased by the Bank on behalf of the customer and leased to the customer for a specified term. At the end of the term, the asset is transferred to the customer, thereby providing purchase financing. In the Sell & Lease Back model, companies are granted access to the financing they need by transferring movable/immovable assets already on their balance sheets to the Bank for a specified term, after which the assets are leased back to them. Supplier Financing As we completed a year when liquidity management was extremely critical, PASHA Bank, with supplier financing services, provided opportunity for various product and service suppliers at every scale by creating an alternative low-cost finance source they can rapidly reach for their cash flow needs. Trade Receivable Financing In 2024, PASHA Bank continued to provide fast financing solutions for the sustainability of the operations of its customers by cashing out their receivables which arose/or will be arisen from commercial transactions before their due dates. Regional Banking PASHA Bank continued and increased its synergy with the Group bank and subsidiaries in 2023 in accordance with its goal of being “The first bank that comes to mind in the region” for companies operating or planning to operate within “Türkiye-Azerbaijan-Georgia” triangle. With the regional collaboration opportunities it has and the support of innovative perspective and approach, the Bank achieved to increase its share in trade and trade financing in that region rapidly and left a very good year behind in acquisition of new customers in this area. Commodity Financing PASHA Bank provides financing to its customers by accepting as collateral certain commodities that have been physically imported, on the condition that they are stored in an approved warehouse and kept under control as per the Collateral Management Agreement (CMA). Mergers and Acquisitions Financing PASHA Bank maintained its appetite in mergers and acquisitions in 2024. As a result, PASHA Bank increased the amount of financing to real sector including project financing and mergers and acquisitions financing in comparison with prior year. 42 PASHA Bank 2024 Annual Report