PASHA BANK ENG 20

PAGE SECTION ONE GENERAL INFORMATION I. Bank’s foundation date, start-up statute, history about the changes in this mentioned statute 108 II. Explanation about the Bank’s capital structure, shareholders of the Bank who are in charge of the management and/or auditing of the Bank directly or indirectly, changes in these matters (if any) and the group the Bank belongs to 109 III. Explanation on the Board of Directors, members of the audit committee, president and executive vice presidents, changes in these matters (if any) and shares of the Bank they possess 110 IV. Explanation on shareholders having control shares 111 V. Information on the Bank’s service type and field of operations 111 VI. Existing or potential, actual or legal obstacles on immediate equity transfer between the Bank and its subsidiaries or repayment of the debt 111 SECTION TWO UNCONSOLIDATED FINANCIAL STATEMENTS I. Unconsolidated Financial Statements At 31 December 2020 112 II. Unconsolidated Off-Balance Sheet As at 31 December 2020 114 III. Unconsolidated Income Statement For the Year Ended 31 December 2020 116 IV. Unconsolidated Income and Expense Items Accounted in Equity For the Year Ended 31 December 2020 117 V. Notes to Unconsolidated Statement of Changes in Shareholders’ Equity For the Year Ended 31 December 2020 118 VI. Notes to Unconsolidated Statements of Cash Flow For the Year Ended 31 December 2020 120 VII. Notes to Unconsolidated Statements of Profit Distribution For the Year Ended 31 December 2020 121 SECTION THREE EXPLANATIONS ON ACCOUNTING POLICIES I. Basis of presentation 122 II. Explanations on strategy of using financial instruments and foreign currency transactions 123 III. Explanations on forward transactions, options and derivative instruments 123 IV. Explanations on interest income and expense 123 V. Explanations on fee and commission income and expense 123 VI. Explanations on financial assets 124 VII. Explanations on expected credit loss 125 VIII. Explanations on offsetting financial assets 127 IX. Explanations on sales and repurchase agreements and securities lending transactions 127 X. Explanations on assets held for resale and fixed assets from discontinued operations and liabilities related with these assets 128 XI. Explanations on goodwill and other intangible assets 128 XII. Explanations on property and equipment 128 XIII. Explanations on investment properties 129 XIV. Explanations on leasing transactions 129 XV. Explanations on provisions and contingent commitments 129 XVI. Explanations on obligations related to employee rights 130 XVII. Explanations on taxation 130 XVIII. Explanations on borrowings 131 XIX. Explanations on issuance of shares certificates 131 XX. Explanations on avalized drafts and acceptances 131 XXI. Explanations on government incentives 131 XXII. Explanations on profit reserves and profit distribution 131 XXIII. Explanations on earnings per share 131 XXIV. Explanations on related parties 132 XXV. Explanations on cash and cash equivalents 132 XXVI. Explanations on segment reporting 132 XXVII. Reclassifications 132 XXVIII. Explanations on other matters 132 Index 106 Annual Report 2020 PASHA Bank Year-End Financial Report