PASHA BANK ENG 20

Chairman’s Message The designed strategy of the Bank does not only cover impressive bottomline performance, additionally, it focuses on introducing totally different value proposition to the market. 2023 We have full confidence that outstanding achievements in 2020 strategy despite very challenging economic landscape would prevail itself in the next, 2023 strategic period. assets, reached TL 1,493 million with a 36.6% increase. Due to effective risk management framework, and prudent credit policy pursued by the Bank we have been successful in preserving low level of NPL in our balance sheet. It is worth to underline that flexible revisiting of credit policy, adjusting tactics of credit and underwriting policy to the current realities of macroeconomic environment etc. are forming substance of the overall risk approach of the Bank. Moreover, it is worth to underline that the proactive approach of the regulator to risk management has also expanded the ability of the banks managing credit risks in a proper way. The fact is that, the current trigger behind economic slowdown is very specific which requires regulators to act taking into account huge direct support need of economic agents. The year 2020 is the last year of the current strategic period of the Bank where the strategic objectives have been set like continuing as an investment bank, leveraging up, increasing profitability and achieving diversification. In overall, the designed strategy of the Bank doesn’t only cover impressive bottomline performance, additionally, it focuses on introducing totally different value proposition to the market, which in turn acquire its aspiration from the values of shareholders. We are very honored to state that the Bank progresses both financially and non- financially successfully from one strategic period to another achieving the strategic objectives set out. We have full confidence that outstanding achievements in 2020 strategy despite very challenging economic landscape would prevail itself in the next, 2023 strategic period, and the Bank would continue from one hand its expansion in balance sheet and other financial indicators, from other hand would evolve adequately on corporate governance side. In overall, the designed strategy of the Bank doesn’t only cover impressive bottomline performance, additionally, it focuses on introducing totally different value proposition to the market, which in turn acquire its aspiration from the values of shareholders. As usual, 2023 strategy of the Bank sets financial targets in front of the Bank, also, it envisages considering agile way of working, recognize data driven decision making, and strive making innovation part of our business. While executing the strategy, we would continue to make substantial investments to the information technologies, risk management, credit management, fund raising, talent acquisition etc. and development of our employees that are of foremost importance. In overall, agility and know-how regarding focus sectors are expected to be differentiating capabilities of the Bank. It is extremely important to remind that initiatives by the Bank with respect to strengthening risk management 24 Annual Report 2020 PASHA Bank General Information