PASHA BANK ANNUAL REPOT 2024

PROFIT DISTRIBUTION POLICY The Bank’s general policy on profit distribution provides for payment of dividends to the extent allowed by the financial structure of the Bank, the pending investments, the situation of the sector, the economic conjuncture, and the legislation on banking. The Bank’s principles pertaining to profit distribution are included in the Articles of Association and the corporate website of the Bank. The General Assembly can – after setting aside the statutory reserves as required by Turkish Commercial Code and the provisions of the Articles of Association of the Bank, and provided that the permissions required by the legislation on banks are obtained – at its sole discretion and in a way not to constitute a vested right, decide to distribute profits out of the remaining amount, to the members of the Board of Directors and/or of the senior management of the Bank, and to the personnel, at the amounts it wishes. The General Assembly is empowered to decide to distribute the remaining profit entirely or partly to the shareholders, or to set aside as extraordinary reserve. In case the Board of Directors tabled a motion for the approval of the shareholders at the general assembly meeting in order that a decision be taken to not distribute the profit for the period, it is obligatory to disclose to the shareholders the reason for not distributing the profit and where the retained profit will be used. Within the scope of the proposal presented by the representative of PASHA Holding LLC and PASHA Bank OJSC, shareholders of the Bank, at the General Assembly meeting, and in compliance with the relevant provisions of the Banking Law, it was resolved at the Ordinary General Assembly convened on 15 March 2024 that: From the Bank’s unconsolidated net profit for the year 2023, amounting to TL 525,002,013.47, the statutory obligation amount of TL 26,250,100.67 shall be set aside as Primary Legal Reserve, the remaining distributable net profit of TL 498,751,912.80 shall not be distributed as dividends but shall instead be transferred to the Extraordinary Reserves account, the profit for the year 2023 and the retained earnings and reserves from previous years that have not been subject to distribution shall not be distributed at this stage, but the possibility of distribution may be evaluated during the year in case favorable conditions arise. Within the scope of the Bank’s Board of Directors’ resolution proposal dated 26 April 2024 and numbered 2024/44, and in compliance with the relevant provisions of the Banking Law, it was resolved at the Extraordinary General Assembly meeting convened on 15 May 2024 that, following the allocation of the statutory obligation amount of TL 26,250,100.67 from the Bank’s unconsolidated net profit of TL 525,002,013.47 for the year 2023 as Primary Legal Reserve, TL 15,000,000.00 of the remaining distributable net profit of TL 498,751,912.80, previously transferred to the Extraordinary Reserves account, shall be distributed to shareholders as a cash dividend in proportion to their shareholding. Based on our financial statements for the period of 1 January 2024- 31 December 2024 audited by KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. TL 462,872,976.45 “Net Period Profit” was realized and the Board of Directors’ proposal for the method of distribution will be submitted for the approval of the General Assembly on 14 March 2025. 78 PASHA Bank 2024 Annual Report