PASHA_BANK_ANNUAL REPORT 2022

INFORMATION RELATED TO UNCONSOLIDATED FINANCIAL POSITION AND RISK MANAGEMENT (Continued) d.1) CR1 - Credit quality of assets Current Period Gross Carrying Amounts reported in Financial Statements in accordance with TAS Allowances/ amortization and impairment Net Value Defaulted exposures Non-defaulted exposures 1 Loans and lease receivables 16,604 3,621,489 (68,809) 3,569,284 2 Debt securities - 562,018 (9,850) 552,168 3 Off-balance sheet exposures - 1,195,686 (7,254) 1,188,432 Total 16,604 5,379,193 (85,913) 5,309,884 Prior Period Gross Carrying Amounts reported in Financial Statements in accordance with TAS Allowances/ amortization and impairment Net Value Defaulted exposures Non-defaulted exposures 1 Loans and lease receivables 45,824 2,376,628 (70,933) 2,351,519 2 Debt securities - 432,744 (4,803) 427,941 3 Off-balance sheet exposures - 747,877 (6,820) 741,057 Total 45,824 3,557,249 (82,556) 3,520,517 d.2) CR2 - Changes in stock of defaulted loans and debt securities Current period Prior Period 1 Beginning Balance 45,824 36,077 2 Additions 116 12,584 3 Receivables that are not re-default - - 4 Write-offs - - 5 Other changes 1 (29,336) (2,837) Ending Balance(1+2-3-4±5 ) 16,604 45,824 1) Includes collections from non-performing receivables, classifications to performing receivables and exchange differences. d.3) CRB - Additional explanations on credit quality of assets Bank details calculate expected loss provisions within the scope of TFRS’9, as explained in the account policies and disclosures related to impairment of Financial assets and expected credit loss calculation. The Bank evaluates whether there is a significant increase in the credit risk of the Financial instrument within the scope of impairment since it was first included in the Financial statements. In making this assessment, it uses the change the expected default risk of the Financial instrument. Loans that have overdue above 90-day in delay in the relevant month are included in the follow-up accounts and are subject to specific provisions. Refinancing or restructuring; One or more loans extended by the Bank due to financial difficulties that the customer or group is expected to be present for future, is subject to a new loan that will cover the principal or interest payment completely or partially, or the conditions in existing loans are changed to ensure that the debt can be paid. 190 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