PASHA BANK ENG 20

Message from the CEO This year, our bank kept on its progress for diversifying its operations in investment banking. service In order to serve our customers better, our processes and systems have been renovated. exchange rates due to low interest rates and incentives in our country started creating pressure on inflation, CBRT reverted to tight monetary policy after two years by hiking the policy rate in the Monetary Policy Meeting in September. The policy rate hiked to 17% with repeated increases in November and December. BRSA repealed the regulations which it introduced on swaps with non- residents and on asset ratios in the first quarter of the year, and this was perceived positively by the markets as moving towards normalization. The markets closed the year with a smooth trend due to the messages of the new economy administration, following the changes in the governorship of CBRT and the economy administration. While the US Dollar / TRY exchange rate receded to 7.40 and Borsa İstanbul closed the year 2020 at 1,476 points, with an annual yield of 29%, thus being one of the exchanges delivering the highest yield in the world. During the rather extraordinary year of 2020, we continued to take sides with the real economy by increasing our credits on an ongoing basis. Despite the rapidly changing market conditions, we proceeded to issue bills and bonds in Turkey and abroad while we obtained sources for our bank through the issue of lease certificate in line with our strategy of diversifying our funding sources. This year, our bank kept on its progress for diversifying its operations in investment banking. As PASHA Bank, we gave our customers in the agricultural and automotive industry access to a total of TRY 90 million of financial resources while investing in technology dominated venture capital funds and intermediating funding from capital markets with issues of Asset- Based Securities. Likewise during this period, our bank increased the funding limits obtained from domestic and foreign banks and played an important role in foreign trade investment among Turkey-Azerbaijan-Georgia with an expanding network of correspondents. Within the framework of the pandemic dynamics and measures, the technological infrastructure enabling our employees for homeworking has been put into effect in just three days’ time. Support and guidance activities were performed, alongside technological resources, for adapting our human resources to the new remote working environment. During this period in which our investments and strategic projects were carried on uninterruptedly, our employees’ health and taking the necessary physical precautions have been our priority. With the consciousness of the threat imposed by the pandemic over individual and public health, we realized a joint project with İstanbul Technical University (ITU) Arı Teknokent. We contributed to the health professionals and our country’s battle against the pandemic by supporting the digital production center ITU MAGNET FAB TRIDI in producing protective shield masks. In September 2020, our bank upgraded its Core Banking System 28 Annual Report 2020 PASHA Bank General Information