PASHA BANK ANNUAL REPOT 2024

dated 28.04.2022 and numbered 10188, as well as the application of increased risk weights calculated based on the uplift in the standardized approach under the Board Decision dated 21.10.2022 and numbered 10388, in cases where internal ratings-based approaches were used, shall be terminated as of 19 December 2024, and the risk weights specified in the Regulation on the Measurement and Assessment of Capital Adequacy of Banks shall be applied to such loans including loans already extended. Furthermore, within the same decision, it was stated that the practice specified in the Board Decision dated 12.12.2023 and numbered 10747, which allows, for the purposes of calculating credit risk exposure under the Regulation, the use of the Central Bank of the Republic of Türkiye’s (Central Bank) buying exchange rate dated 26.06.2023 when valuing monetary and non-monetary items, other than those denominated in foreign currency measured at historical cost, and the related specific provision amounts in accordance with the Turkish Accounting Standards shall continue by using the Central Bank’s buying exchange rate dated 28.06.2024, effective from 01.01.2025, until otherwise decided by the Board. Extraordinary General Assembly Meeting held during the year, if any An Extraordinary General Assembly Meeting was held in 2024. 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. Information on Audits In accordance with the Banking Law no.5411, the Bank is subject to limited reviews at each quarter and a full scope audit at year ends by an Independent Audit Firm. Audit reports are approved by the Audit Committee and the Board of Directors. Moreover, based on Article 65 of the same Law, the Bank is under continuous oversight and audit of Banking Regulation and Supervision Agency and other regulatory agencies and authorities. In the year 2023-2024, our Bank has been included in the audit program by the Banking Regulation and Supervision Agency (BRSA) and within this scope, public audit activities are being carried out. Activities within the Scope of Prohibition of Competition Board of Directors Members were given the permission by the General Assembly to act within the scope of Article 395 of the Turkish Commercial Code numbered 6762 ‘‘Prohibition of doing business with the Company and loans from the Company’’ and Article 396 of the same Law, ‘‘Prohibition of competition’’. However, the members of the Board of Directors did not have any activities on their or other parties’ behalf or any act within the scope of prohibition of competition within the frame of this permission granted by the General Assembly. 83 Information on Management and Corporate Governance Principles