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) VII. EXPLANATIONS ON LEVERAGE RATIO Unconsolidated leverage ratio was realized as 21.1% (31 December 2019 - 26.5%). The increase occurred in the on-balance sheet assets and off-balance sheet transactions led to a change in leverage compared to the previous period. Regulation has been linked to the provision of the minimum leverage ratio of 3%. Current Period (1) Prior Period (1) Asset On The Balance Sheet Assets on the balance sheet (excluding derivative financial instruments and loan derivatives, including collaterals) 2,220,580 1,644,939 (Assets deducted from core capital) (5,665) (2,819) Total risk amount for assets on the balance sheet 2,214,915 1,642,120 Derivative Financial Instruments and Loan Derivatives Renewal cost of derivative financial instruments and loan derivatives 174 47 Potential credit risk amount of derivative financial instruments and loan derivatives 745 341 Total risk amount of derivative financial instruments and loan derivatives 919 388 Financing Transactions With Securities Or Goods Warranties Risk amount of financial transactions with securities or goods warranties (excluding those in the balance sheet) 10,410 13,148 Risk amount arising from intermediated transactions - - Total risk amount of financing transactions with securities or goods warranties 10,410 13,148 Off-the-Balance Sheet Transactions Gross nominal amount of the off-the-balance sheet transactions 413,523 331,057 Adjustment amount arising from multiplying by the credit conversion rate - - Total risk amount for off-the-balance sheet transactions 413,523 331,057 Capital and Total Risk Core capital 556,771 526,367 Total risk amount 2,639,767 1,986,713 Leverage Ratio Leverage ratio 21.1% 26.5% (1) Arithmetic average of last three months including reporting period. Annual Report 2020 PASHA Bank Year-End Financial Report 165