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) IV. EXPLANATIONS ON INTEREST RATE RISK Interest rate risk is the risk that expresses the effects of fluctuations in the market interest rates on the value increase/ decrease of the Bank’s interest rate sensitive assets and liabilities. The interest rate sensitivity of Assets, Liabilities and Off-balance sheet items is carefully followed up by the treasury department of the Bank. Assets and liabilities which are sensitive to interest are managed in such a way that minimizes the interest risk. The interest rate risk of the banking items is measured legally in accordance with the “Regulation on Measurement and Assessment of Standard Shock Method on the interest rate risk arising from banking accounts”, and this legal limit is monitored and reported monthly, based on this measurement. a. Interest rate sensitivity of assets, liabilities and off-balance sheet items based on repricing dates 31 December 2020 Up to 1 Month 1-3 Months 3-12 Months 1-5 Year 5 Year and over Non- Interest Bearing (1) Total Assets Cash and Cash Equivalents (Cash in vault, effectiveness, money in transfer and cheques purchased) and Balances with the CB of Turkey 133,831 - - - - 21,091 154,922 Due from Banks 104,635 - - - - 16,721 121,356 Financial Assets at Fair Value Through Profit/Loss (7) 493 - - - - 7,405 7,898 Money Market Placements 23,011 - - - - - 23,011 Financial assets at fair value through other comprehensive income 2,575 275 20,341 - - 7,659 30,850 Loans (2) 405,573 297,427 443,776 334,140 12,019 (42,190) 1,450,745 Financial assets measured at amortised cost 544 1,226 455 114,551 - (1,755) 115,021 Other Assets - - - - - 275,606 275,606 Total Assets 670,662 298,928 464,572 448,691 12,019 284,537 2,179,409 Liabilities Bank Deposits - - - - - - - Other Deposits - - - - - - - Funds From Interbank Money Market 49,634 1,064 2,565 - - - 53,263 Miscellaneous Payables (5) 1,367 9,318 - - - 34,119 44,804 Marketable Securities Issued 1,412 621 185,485 459,498 - - 647,016 Funds Borrowed From Other Financial Institutions 187,932 148,684 85,967 380,521 - 120 803,224 Other Liabilities (3),(4) 1,362 1,070 - - - 628,670 631,102 Total Liabilities 241,707 160,757 274,017 840,019 - 662,909 2,179,409 Balance Sheet Long Position 428,955 138,171 190,555 - 12,019 - 769,700 Balance Sheet Short Position - - - (391,328) - (378,372) (769,700) Off-balance Sheet Long Position (6) 38,899 57,797 - - - - 96,696 Off-balance Sheet Short Position (6) (38,691) (59,256) - - - - (97,947) Total Position 429,163 136,712 190,555 (391,328) 12,019 (378,372) (1,251) (1) Allowances for the expected credit losses are included in the non-interest bearing column. (2) Finance lease receivables are included. (3) Shareholders’ equity is presented under other liabilities in the non-interest bearing column. (4) Borrowers’ funds is presented in the other liabilities. (5) Presented in other liabilities at financial statements. (6) Includes asset purchase and sale commitments (7) Includes derivatives financial assets 154 Annual Report 2020 PASHA Bank Year-End Financial Report