PASHA_BANK_ANNUAL REPORT 2022

68 PASHA Bank 2022 Annual Report The Bank’s general policy on profit distribution provides for payment of dividends to the extent allowed by the financial structure of the Bank, the pending investments, the situation of the sector, the economic conjuncture, and the legislation on banking. The Bank’s principles pertaining to profit distribution are included in the Articles of Association and the corporate website of the Bank. The General Assembly can – after setting aside the statutory reserves as required by Turkish Commercial Code and the provisions of the Articles of Association of the Bank, and provided that the permissions required by the legislation on banks are obtained – at its sole discretion and in a way not to constitute a vested right, decide to distribute profits out of the remaining amount, to the members of the Board of Directors and/or of the senior management of the Bank, and to the personnel, at the amounts it wishes. The General Assembly is empowered to decide to distribute the remaining profit entirely or partly to the shareholders, or to set aside as extraordinary reserve. In case the Board of Directors tabled a motion for the approval of the shareholders at the general assembly meeting in order that a decision be taken to not distribute the profit for the period, it is obligatory to disclose to the shareholders the reason for not distributing the profit and where the retained profit will be used. At the General Assembly convened on 18 March 2022, the following resolutions were agreed upon based on the proposal under the Bank’s Board of Directors Decision No. 2022/18, dated 15 February 2022: Taking into consideration the regulations of the Banking Law, out of the distributable profit of TL 47,125,266.86, which is the Bank’s unconsolidated net profit for 2021, TL 2,356,263.34 will be set aside as First Legal Reserves as the statutory obligation, net distributable profit for the period in the amount of TL 44,769,003.52 will not be distributed as dividends but will be transferred to Extraordinary Reserves. It has also been resolved that 2021 period income and undistributed profit and reserves from periods before 2021 will not be distributed to cause cash outflow, taking into consideration the directives of Banking Regulation and Supervision Agency. Based on our financial statements for the period of 1 January 2022 - 31 December 2022 audited by Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (member company of Ernst&Young Global Limited) TL 203,872,842.98 “Net Period Profit” was realized and the Board of Directors’ proposal for the method of distribution will be submitted for the approval of the General Assembly on 16 March 2023. The following are the details of the support services procured during the reporting period within the scope of the “Regulation Regarding the Procurement of Support Services by the Banks” put into effect on 5 November 2011 by the Banking Regulation and Supervision Agency. Trade Name of Support Services Provider Service Description Operating Area FİNEKSUS BİLİŞİM ÇÖZÜMLERİ TİCARET A.Ş. The main connection and infrastructure required for the IP based messaging network for SWIFT, SWIFTNet, and maintenance and support services for the PayGate software. Information Systems INTERTECH BİLGİ İŞLEM VE PAZARLAMA TİCARET A.Ş. Support, update and maintenance services for the core banking system (INTER-VISION) Information Systems ACTIVE BİLGİSAYAR HİZMETLERİ VE TİCARET LİMİTED ŞİRKETİ Core Banking System Securities Module Information Systems BARİKAT BT BİLİŞİM TİC. A.Ş. Information Security and Operations Center Information Systems BİLGİ BİRİKİM SİSTEMLERİ ELEK. VE BİLG. END. TİC. LTD. ŞTİ. Information Technologies Network Operations Monitoring Information Systems TEPE SAVUNMA VE GÜVENLİK SİSTEMLERİ SANAYİ A.Ş. Private security service for the head office Private Security Service Profit Distribution Policy Information on Support Service Providers