PASHA BANK ENG 20

Having celebrated its fifth year in Turkey, our bank achieved successful results at the end of a challenging year in line with its sustainable growth target. Esteemed Stakeholders, The year 2020, which started with great expectations and record-high growth for the markets, has taken its place in history as a year full of disappointments and loss for the economies worldwide, contrary to the expected. In a world under the effect of a pandemic unprecedented in recent years, country economies strived to get through the year with minimum damage through incentive packages and interest rate cuts while habits and methods of operation changed rapidly to adapt to the new normal. Having celebrated its fifth year in Turkey in March, our bank increased its total assets by 26.3% at the end of this challenging year 2020 compared to the prior year, to reach TRY 2,179 million in line with our sustainable growth goal. Compared to 2019, our gross cash loan increased 36.6% to reach TRY 1,493 million and we closed the year with a profit of TL 31.4 million. In October, Fitch Ratings increased Pasha Bank’s National Long Term Rating to A-(tur), thus affirming the accuracy of the strategy we pursue. JCR Eurasia Rating revised PASHA Bank’s Corporate Governance Principles rating upwards from 9.11 to 9.20 and has determined the outlook as “Stable”. As a consequence of the spreading of the new type coronavirus in China in March followed by an accelerated expansion to the whole world and global recession concerns escalating with the sharp drop observed in oil prices, the Fed and subsequently other central banks resorted to interest rate cuts after extraordinary meetings. Central Bank of the Republic of Turkey (CBRT) lowered the policy rate to a level of 8.25%. The markets came to life during summer months owing to incentive packages provided by the government, the measures taken by the BRSA and the interest rate cuts with state banks leading the way. During summer, as the number of cases declined and the restrictions on the economies eased, Borsa İstanbul hit new records, and exchange rates showed a falling trend again. Nevertheless, as of September when the second wave of coronavirus set in the whole world and primarily in the European countries, the markets started a negative course once more, of which the effects lasted until the end of the year. As the increase in consumer expenditure trends and the hike in Message from the CEO successful 26 Annual Report 2020 PASHA Bank General Information