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) The Bank discounts the collaterals by using some fixed ratios and calculates the expected cash equivalent of the collaterals in case they are transformed into cash. The difference between the credit and the cash equivalent of the collateral is defined as the net risk. In calculation of the net risk, the coefficients in the facility rating model are taken into account. Current Period Exposures unsecured: carrying amount (According to TAS) Exposures secured by collateral Exposures secured by collateral, of which: secured amount Exposures secured by financial guarantees Exposures secured by financial guarantees, of which: secured amount Exposures secured by credit derivatives Exposures secured by credit derivatives, of which: secured amount 1 Loans and lease receivables 3,172,173 397,111 297,067 586,984 105,095 - - 2 Debt securities 552,168 - - - - - - 3 Total 3,724,341 397,111 297,067 586,984 105,095 - - 4 Defaulted items 16,604 - - - - - - Prior Period Exposures unsecured: carrying amount (According to TAS) Exposures secured by collateral Exposures secured by collateral, of which: secured amount Exposures secured by financial guarantees Exposures secured by financial guarantees, of which: secured amount Exposures secured by credit derivatives Exposures secured by credit derivatives, of which: secured amount 1 Loans and lease receivables 2,024,500 327,019 183,250 135,740 41,398 - - 2 Debt securities 427,941 - - - - - - 3 Total 2,452,441 327,019 183,250 135,740 41,398 - - 4 Defaulted items 45,824 - - - - - - d.5) Qualitative explanations using the rating grades to calculate the banks’ credit risk by standard approach In determining the risk weights regarding risk classes defined in Article 6 of “Regulation on Measurement and Assessment of Capital Adequacy of Banks”, country risk classification published by OECD (Organisation for Economic Cooperation and Development) is taken into account. According to capital adequacy regulations, the risk classification and risk weights of receivables from banks and intermediary institutions and receivables from corporates are determined in accordance with the regulations. 193 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