PASHA_BANK_ANNUAL REPORT 2022

General Information Financial Information and Risk Management Review Information on Management and Corporate Governance Principles INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT (Continued) Current Period Prior Period Shareholders’ Equity Total shareholders’ equity 1,342,862 646,135 Total risk weighted items 5,736,757 3,714,502 CAPITAL ADEQUACY RATIOS Core Capital Adequacy Ratio (%) 14.02 16.14 Tier 1 Capital Adequacy Ratio (%) 14.02 16.14 Capital Adequacy Standard Ratio (%) 23.41 17.39 BUFFERS Total additional core capital requirement ratio (a+b+c) 2.504 2.505 a) Capital conservation buffer requirement (%) 2.500 2.500 b) Bank specific countercyclical buffer requirement (%) 0.004 0.005 c) Higher bank buffer requirement ratio (%) - - Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets) (%) 6.02 8.14 Amounts below the thresholds for deduction (before risk weighting) Non-significant investments in the capital of other financials - - Significant investments in the common stock of financials - - Mortgage servicing rights (net of related tax liability) - - Deferred tax assets arising from temporary differences (net of related tax liability) - - Applicable caps on the inclusion of provisions in Tier 2 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap) 71,290 58,143 Cap on inclusion of provisions in Tier 2 under standardised approach 71,290 46,431 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings- based approach (prior to application of cap) - - Cap for inclusion of provisions in Tier 2 under internal ratings-based approach - - Debt instruments subjected to Article 4 (to be implemented between January 1, 2018 and January 1, 2022) Current cap on common equity T1 capital instruments subject to phase out arrangements - - Amount excluded from common equity T1 capital due to cap (excess over cap after redemptions and maturities) - - Current cap on additional T1 capital instruments subject to phase out arrangements - - Amount excluded from additional T1 capital due to cap (excess over cap after redemptions and maturities) - - In the calculation of the amount subject to credit risk, in accordance with the Regulation on the Measurement and Evaluation of the Capital Adequacy of Banks (Regulation) stated in the Board Decision dated 28.04.2022 and numbered 9996 and published in the Official Gazette dated 23.10.2015 and numbered 29511; the application for the use of the Central Bank of the Republic of Turkey foreign exchange buying rate of 31.12.2021 when calculating the amounts of monetary assets and non-monetary assets, other than items in foreign currency measured in terms of historical cost, in accordance with Turkish Accounting Standards and related special provisions; until a Board Decision to the contrary is taken, it has been decided to continue using the Central Bank’s foreign exchange buying rate dated 30.12.2022. As of 31 December 2022, the Bank has not used this opportunity in its Capital Adequacy calculations. 147 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