PASHA_BANK_ANNUAL REPORT 2022

General Information Financial Information and Risk Management Review Information on Management and Corporate Governance Principles EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS (Continued) 4. Information on trading income/loss (Net) Current Period Prior Period Income 1,676,917 1,837,420 Profit on trading account securities 10,191 3,159 Profit on derivative financial transactions (1) 54,640 34,284 Foreign exchange gains 1,612,086 1,799,977 Loss (-) (1,626,298) (1,816,904) Losses on trading account securities (528) (1) Losses on derivative financial transactions (1) (38,390) (4,022) Foreign exchange losses (1,587,380) (1,812,881) Net Trading Income/Loss 50,619 20,516 (1) Due to the short maturity of derivative financial instruments held by the Bank, the major part of gains and loss from derivative financial transactions are resulted from changes in exchange rates. 5. Information on other operating income Other operating income includes TL 13,366 prior year specific and expected loss provision and TL 42,173 income from building impairment reversals, and there is no income regarding extraordinary accounts (31 December 2021 - TL 8,612 special provision and expected loss provision reversal). 6. Provision expenses related to loans and other receivables Current Period Prior Period Expected Credit Loss (1) 17,567 37,459 12 Month Expected Credit Loss (Stage 1) 17,323 15,279 Significant increase in credit risk (Stage 2) 244 15,388 Non-Performing Loans (Stage 3) - 6,792 Marketable Securities Impairment Provision - - Financial Assets at Fair Value Through Profit or Loss - - Financial Assets At Fair Value Through Other Comprehensive Income - - Investments in Associates, Subsidiaries and Held-to-Maturity Securities Value Decrease - - Investments in Associates - - Subsidiaries - - Joint Ventures - - Other 100 100 Total (2) 17,667 37,559 (1) Includes expected credit losses for the non-cash loans. (2) While considering the provision reversals included in other operating income, net provision expense is TL 4,301 (31 December 2021 - TL 28,947 net provision expense). 235 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