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) Shareholders’ Equity Total shareholders’ equity 584,574 - 548,480 - Total risk weighted items 2,219,041 - 1,713,856 - CAPITAL ADEQUACY RATIOS Core Capital Adequacy Ratio (%) 25.09 - 30.75 - Tier 1 Capital Adequacy Ratio (%) 25.09 - 30.75 - Capital Adequacy Standard Ratio (%) 26.34 - 32.00 - BUFFERS Total additional core capital requirement ratio (a+b+c) 2.505 - 2.505 - a) Capital conservation buffer requirement (%) 2.500 - 2.500 - b) Bank specific countercyclical buffer requirement (%) 0.005 - 0.005 - c) Higher bank buffer requirement ratio (%) - - - - Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets) (%) 17.09 - 22.75 - Amounts below the thresholds for deduction (before risk weighting) Non-significant investments in the capital of other financials - - - - Significant investments in the common stock of financials - - - - Mortgage servicing rights (net of related tax liability) - - - - Deferred tax assets arising from temporary differences (net of related tax liability) - - - - Applicable caps on the inclusion of provisions in Tier 2 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap) 34,452 - 34,015 - Cap on inclusion of provisions in Tier 2 under standardised approach 27,738 - 21,423 - Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) - - - - Cap for inclusion of provisions in Tier 2 under internal ratings-based approach - - - - Debt instruments subjected to Article 4 (to be implemented between January 1, 2018 and January 1, 2022) Current cap on common equity T1 capital instruments subject to phase out arrangements - - - - Amount excluded from common equity T1 capital due to cap (excess over cap after redemptions and maturities) - - - - Current cap on additional T1 capital instruments subject to phase out arrangements - - - - Amount excluded from additional T1 capital due to cap (excess over cap after redemptions and maturities) - - - - (1) Amounts for items for subject to the transition process. 136 Annual Report 2020 PASHA Bank Year-End Financial Report