PASHA_BANK_ANNUAL REPORT 2022

General Information Financial Information and Risk Management Review Information on Management and Corporate Governance Principles EXPLANATIONS ON ACCOUNTING POLICIES (Continued) XXIV. EXPLANATIONS ON CASH AND CASH EQUIVALENTS For the purposes of the preparation of statement of cash flows, “Cash” includes cash, effectives, and cash in transit, purchased cheques and demand deposits including balances with the Central Bank; and “Cash equivalents” include interbank money market placements and time deposits at banks with original maturity periods of less than three months. XXV. EXPLANATIONS ON SEGMENT REPORTING Information on operational fields which are determined in accordance with the Bank’s organizational and internal reporting structure and the requirements of “Turkish Financial Reporting Standards on Segment Reporting” (“TFRS 8”) is disclosed in Section Four. XXVI. RECLASSIFICATIONS In order to be consistent with the presentation of current period financial statements, there are certain reclassifications. XXVII. EXPLANATIONS ON OTHER MATTERS None. SECTION FOUR INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT I. INFORMATION ABOUT SHAREHOLDERS’ EQUITY ITEMS Equity capital amount and capital adequacy standard ratio is calculated in accordance with the “Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks” and “Regulation on Equities of Banks”. The current period equity amount of the Bank is TL 1,342,862 (31 December 2021 -TL 646,135) while its capital adequacy standard ratio is 23.41% (31 December 2021 - 17.39%) as of 31 December 2022. The capital adequacy ratio of the Bank is far beyond the minimum rate determined by the related legislation. 143 PASHA Bank 2022 Annual Report Notes to Unconsolidated Financial Statements at 31 December 2022 Pasha Yatırım Bankası A.Ş. (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) Convenience translation of publicly announced unconsolidated financial statements originally issued in turkish, see note I of section three