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) h. Explanations on operational risk The “Basic Indicator Method” that is mentioned in “Regulation on Measurement and Assessment of Capital Adequacy of Banks” Communiqué is used in the operational risk calculation of the Bank and calculated on a yearly basis. Current Period 2 Prior Period Amount Period Amount Current Period Amount Total/ Positive GI year number Ratio (%) Total Gross Revenue 97,898 88,998 147,695 111,530 15 16,730 Amount Subject to Operational Risk (Total*12,5) 209,119 Prior Period 2 Prior Period Amount Period Amount Current Period Amount Total/ Positive GI year number Ratio (%) Total Gross Revenue 82,185 97,898 88,998 89,694 15 13,454 Amount Subject to Operational Risk (Total*12,5) 168,175 IX. EXPLANATIONS ON THE PRESENTATION OF FINANCIAL ASSETS AND LIABILITIES AT THEIR FAIR VALUES Fair value calculations of financial assets and liabilities The fair values of financial assets amortised at cost are determined based on market prices or when this price is not available, based on market prices quoted for other securities subject to the same redemption qualifications in terms of interest, maturity and other similar conditions. The fair value of marketable securities issued is calculated according to quoted market prices and if these are not available, amounts derived from discounted cash flow models. The expected fair value of loans and receivables are determined by calculating the discounted cash flows using the current market interest rates for the fixed loans with fixed interest rates. For the loans with floating interest rates, it is assumed that the carrying value reflects the fair value. 205 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