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) Reciprocal cross-holdings in Tier 2 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 the 10% threshold) (-) - - - - Significant investments in the capital banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions) - - - - National specific regulatory adjustments (-) - - - - Total regulatory adjustments to Tier 2 capital - - - - Tier 2 capital (T2) 27,738 - 21,423 - Total capital (TC = T1 + T2) 584,574 - 548,480 - Total risk weighted assets - - - - Loans extended being non-compliant with articles 50 and 51 of the Law - - - - Portion of the sum of the banks’ real estate net book values, which is in excess of fifty per cent of their own funds and net book values of those of merchandise and real estate which have to be acquired due to their receivables and disposed of pursuant to Article 57 of the Banking Law, which cannot be disposed of despite the lapse of a period of five years since the date of such acquisition (-) - - - - National specific regulatory adjustments - - - - The process of transition will continue to reduce from Common Equity Tier 1 capital and Additional Tier 1 capital of which: The sum of partnership share on banks and financial institutions (domestic and abroad), with shareholding of less than 10% - - - - of which: Partnership share on banks and financial institutions (domestic and abroad) that are not consolidated, with a shareholding of 10% and above - - - - of which: Partnership share on banks and financial institutions (domestic and abroad) that are not consolidated, with a shareholding of 10% and above - - - - Annual Report 2020 PASHA Bank Year-End Financial Report 135