PASHA BANK ANNUAL REPOT 2024

The Credit Committee, Audit Committee, Corporate Governance Committee, Human Resources Expert Group, Nomination and Remuneration Committee, Strategy and Budget Expert Group, and Risk Management Committee were established under the Board of Directors while fulfilling its duties and responsibilities, to take decisions in their own areas of responsibility in accordance with the powers granted by the Board of Directors, and to carry out the supervision and audit of the Bank’s policies, processes, and practices on behalf of the Board of Directors. The duties and members of the committees are determined by the Board and announced to the public on the PASHA Bank corporate website as well as in its Annual Report. Information on the committees and Expert Groups set up under the Board of Directors is provided below. The Committees and Expert Groups of the Board have carried out activities effectively and in full conformity with laws, and documented and kept the records of all activities they conducted in the fiscal period. Audit Committee The Audit Committee was established to supervise on behalf of the Board of Directors the effectiveness and adequacy of the internal systems of the Bank; the operation of these systems, and the accounting and reporting systems within the framework of the Law and related regulations, and the reliability and integrity of the information produced; to establish the audit and control process that will guarantee ICAAP’s adequacy and accuracy; to make the necessary preliminary evaluations in the selection by the Board of Directors of independent auditing firms and rating, appraisal and support service organizations; to monitor regularly the activities of the institutions selected and contracted by the Board; to ensure the maintenance and coordination of the internal audit activities in a consolidated manner of the subsidiaries subject to consolidation pursuant to related legislation; and to fulfil the duties specified within the Banking and Capital Markets regulations. Listed below is the current composition of the Audit Committee: Name-Surname Committee Position Furkan Evranos Chairperson Kamala Nuriyeva Member The Audit Committee convenes as required by business needs, and at least quarterly. Board of Directors’ Evaluation of Committee Effectiveness The structure, duties, powers and responsibilities of the Audit Committee have been determined in accordance with the provisions of the Regulation on Internal Systems and the Internal Capital Adequacy Assessment Process of Banks which was published in the Official Gazette No. 29057 dated 11 July 2014 and other relevant legislation and outlined in writing by the Audit Committee Regulation. The working principles of the Audit Committee are posted on the corporate website of PASHA Bank. The Audit Committee presented the results of its activities within their responsibilities and its evaluation of activities of units under internal systems to the Board of Directors within the activity report prepared for the period of six months. In 2024, the Audit Committee held 11 meetings with full attendance and made a total of 60 decisions in meetings or based on file evaluations. The meetings were held to discuss and decide on the risk assessment report prepared by the Internal Audit Unit and annual audit plan prepared based thereupon, internal audit reports within the scope of the audit plan; validation and review reports for the ICAAP report dated 31 December 2024; internal audit, technical adequacy, risk analysis and annual review reports for support services providers; annual assessment reports for appraisal firms; designation of the independent audit firm and the services to be procured, the activities and independence of the independent auditor; independently audited financial reports that have been drawn up in accordance with the BRSA regulations and IFRS; management declaration studies; action plans in response to the findings from the penetration tests, business processes and information systems audit report; intra-group transactions report; changes in internal regulations for the units under Internal Systems and their job descriptions, compliance and internal control reporting, annual reports of the internal audit unit, annual internal control plan and information systems review plan, promotion and appointment of employees within the scope of internal systems, key performance indicators and quality assurance and improvement program of internal audit unit. The Audit Committee informed Board Members on the outcomes of its activities concerning internal systems and its decisions regarding the issues on the Board’s agenda at the meetings held throughout the year. The activity reports prepared by the Committee and the Internal Systems Units were presented to the Board of Directors for information and/or approval. 67 Information on Management and Corporate Governance Principles