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) Current Period 1/1/2014 Regarding pre-Application amount (1) Prior Period 1/1/2014 Regarding pre-Application amount (1) Additional Tier 1 capital: instruments Directly issued qualifying Additional Tier 1 instruments plus related stock surplus of which: classified as equity under applicable accounting standards - - - - Directly issued qualifying Additional Tier 1 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards - - - - Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third parties (amount allowed in group AT1) of which: instruments issued by subsidiaries subject to phase out - - - - Additional Tier 1 capital before regulatory adjustments - - - - Additional Tier 1 capital: regulatory adjustments Investments in own Additional Tier 1 instruments - - - - Reciprocal cross-holdings in Additional Tier 1 instruments - - - - 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 common share capital of the entity (amount above 10% threshold) - - - - Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) - - - - National specific regulatory adjustments - - - - The process of transition will continue to reduce from Tier 1 Capital Goodwill or other intangibles and deferred tax liabilities of which the regulation concerning transitional Article 2 of subsection of core capital not reduced from (-) - - - - Net deferred tax asset/liability which is not deducted from Common Equity Tier 1 capital for the purposes of the sub-paragraph of the Provisional Article 2 of the Regulation on Banks’ Own Funds (-) - - - - Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions (-) - - - - Total regulatory adjustments to Additional Tier 1 capital - - - - Additional Tier 1 capital (AT1) - - - - Tier 1 capital (T1 = CET1 + AT1) 556,836 - 527,057 - Tier 2 capital: instruments and provisions Directly issued qualifying Tier 2 instruments plus related stock surplus - - - - Directly issued qualifying Tier 2 instruments plus related stock surplus - - - - Provisions 27,738 - 21,423 - Tier 2 capital before regulatory adjustments 27,738 - 21,423 - Tier 2 capital: regulatory adjustments Investments in own Tier 2 instruments (-) - - - - 134 Annual Report 2020 PASHA Bank Year-End Financial Report