PASHA BANK ANNUAL REPOT 2024

Treasury Management The Treasury Department is tasked with managing PASHA Bank’s assets and liabilities with optimal efficiency in conformity with the regulations of legal bodies. The Unit closely observes the developments in the markets and considers all possible risks including particularly liquidity risk and market risk. The Treasury Department performs trading transactions for profit on the inter‑bank market in line with the risk limits set by the Board of Directors. PASHA Bank employs the treasury products in an increasing quantity while offering the products and services the customers need. The Bank, outstanding with the competitive pricing of derivatives such as forward and swap, helps the customers hedge against risks with custom made products. In addition to its TL‑denominated financing bond issues, it acts as an intermediary for the trading of other capital market instruments on Borsa Istanbul, while supporting customers in their investments with repo transactions denominated in Turkish lira and foreign currencies in various tenors. Monitoring market developments and opportunities closely in Türkiye and around the world, PASHA Bank Treasury Department works in coordination with Treasury departments of PASHA Bank Azerbaijan and Georgia, provides guidance for pricing and marketing of local financial products in the targeted region. Similarly, economic developments in the region are being shared with investors through various bulletins and research reports by working in cooperation with research units in Azerbaijan and Georgia. PASHA Bank’s Treasury Department aims as well to manage future risks in the most effective way in line with the Bank’s risk management strategy. The Department plans to improve the structured products offered to domestic and foreign corporate customers and to play a role in expanding the diversification of potential customers and profitability in Azerbaijan and Georgia by offering them Turkish capital markets products. Financial Institutions Financial Institutions Department continued to contribute to the increase in foreign trade and funding transactions mediated by PASHA Bank in 2024. This contribution is realized by the Department expanding its local and international correspondent network and establishing additional cash and non-cash credit limits in line with the needs of corporate customers and the Treasury Department. Additionally, relations are established with the Bank’s sister institutions, thus mediating the exchange transfers of PASHA Bank customers in AZN (Azerbaijani Manat) and GEL (Georgian Lari). PASHA Bank seeks to enhance its presence in international banking markets and increase its share of customer transactions in foreign trade by expanding its encrypted SWIFT connection (RMA) network and engaging in events attended by global banks, including SIBOS and The Central & Eastern European Forum. Meanwhile, opportunities for collaboration in non-cash transactions have been expanded via mutual agreements with global banks. The Bank has actively contributed to the mutual development of relationships with domestic banks and has promoted its name by participating in syndicated loans organized locally with global banks. The Financial Institutions Department aims to continue its operations at an increasing pace in 2025, focusing on the financing of foreign trade, the support of exports, and the Bank’s access to funding. 43 General Information