PASHA BANK ENG 20

PASHA Yatırım Bankası A.Ş. Notes to Unconsolidated Financial Statements at 31 December 2020 (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) (Convenience Translation of Publicly Announced Financial Statements Originally Issued in Turkish, See Note I of Section Three) INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT(Continued) a. Information on shareholders’ equity Current Period 1/1/2014 Regarding pre- Application amount (1) Prior Period 1/1/2014 Regarding pre- Application amount (1) Common Equity Tier 1 capital Directly issued qualifying common share capital plus related stock surplus 500,000 - 500,000 - Share premium - - - - Legal reserves 31,390 - 5,656 - Projected gains to shareholders’ equity of the accounting standards in Turkey 1,388 - 1,744 - Profit 31,376 - 25,734 - Net current period profit 31,376 - 25,691 - Prior period profit - - 43 - Free shares from investments and associates, subsidiaries and joint ventures that is not recognised in profit - - - - Common Equity Tier 1 capital before regulatory adjustments 564,154 - 533,134 - Common Equity Tier 1 capital: regulatory adjustments Prudential valuation adjustments - - - - Sum of current year net loss and prior period’s loss that is not covered with reserves and losses on shareholders’ equity of the accounting standards in Turkey 469 - - - Development cost of operating lease - - - - Goodwill (net of related tax liability) - - - - Other intangibles other than mortgage-servicing rights (net of related tax liability) 6,849 - 6,077 - Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) - - - - Cash-flow hedge reserve - - - - Gains and losses due to changes in own credit risk on fair valued liabilities - - - - Securitisation gain on sale - - - - Gains and losses due to changes in own credit risk on fair valued liabilities - - - - Defined-benefit pension fund net assets - - - - Investments in own shares (if not already netted off paid-in capital on reported balance sheet) - - - - Reciprocal cross-holdings in common equity - - - - Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) - - - - Significant investments in the common stock of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold) - - - - Mortgage servicing rights (amount above 10% threshold) - - - - Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability) - - - - Amount exceeding the 15% threshold - - - - of which: significant investments in the common stock of financials - - - - of which: mortgage servicing rights - - - - of which: deferred tax assets arising from temporary differences - - - - National specific regulatory adjustments - - - - Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1 and Tier 2 to cover deductions - - - - Total regulatory adjustments to Common equity Tier 1 7,318 - 6,077 - Common Equity Tier 1 capital (CET 1) 556,836 - 527,057 - Annual Report 2020 PASHA Bank Year-End Financial Report 133