PASHA_BANK_ANNUAL REPORT 2022

INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT (Continued) VII. EXPLANATIONS ON LEVERAGE RATIO Unconsolidated leverage ratio was realized as 11.2% (31 December 2021 - 14.8%). The increase occurred in the on-balance sheet assets and off-balance sheet transactions led to a change in leverage compared to the previous period. Regulation has been linked to the provision of the minimum leverage ratio of 3%. Current Period (1) Prior Period (1) Asset On The Balance Sheet Assets on the balance sheet (excluding derivative financial instruments and loan derivatives, including collaterals) 5,834,437 3,319,383 (Assets deducted from core capital) (9,674) (6,925) Total risk amount for assets on the balance sheet 5,824,763 3,312,458 Derivative Financial Instruments and Loan Derivatives Renewal cost of derivative financial instruments and loan derivatives - - Potential credit risk amount of derivative financial instruments and loan derivatives 3,570 9,952 Total risk amount of derivative financial instruments and loan derivatives 3,570 9,952 Financing Transactions With Securities Or Goods Warranties Risk amount of financial transactions with securities or goods warranties (excluding those in the balance sheet) 97,599 28,255 Risk amount arising from intermediated transactions - - Total risk amount of financing transactions with securities or goods warranties 97,599 28,255 Off-the-Balance Sheet Transactions Gross nominal amount of the off-the-balance sheet transactions 1,130,648 699,957 Adjustment amount arising from multiplying by the credit conversion rate - - Total risk amount for off-the-balance sheet transactions 1,130,648 699,957 Capital and Total Risk Core capital 791,736 601,044 Total risk amount 7,056,580 4,050,622 Leverage Ratio Leverage ratio 11.2% 14.8% (1) Arithmetic average of last three months including reporting period. 182 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