PASHA_BANK_ANNUAL REPORT 2023

instrument, stand out as a secure investment vehicle for investors. From the perspective of farmers, indexing the forward price of purchased agricultural inputs to wheat prices eliminates pricing risks by eliminating uncertainties in financial markets, considering that their incomes are tied to agricultural commodity prices. Moreover, the provided funding enables farmers to access agricultural inputs at more favorable prices. The first wheat-indexed asset-backed security issuance, initially set at TL 3 million, achieved an average term of 72 days and a compounded return of 73%, satisfying investors. With a motto of innovation and sustainable economy, PASHA Bank conducted its second issuance in this field in 2023, reaching a total issuance size of TL 23 million. PASHA Bank crowned its sustainability journey with the “Green Office” diploma. By successfully completing the goals set forth in the Green Office Transformation Program implemented by the Worldwide Fund for Nature (WWF), which has been operating in Türkiye for 49 years, PASHA Bank has earned the “Green Office” diploma. This diploma is obtained at the end of a process where institutions aim to reduce their ecological footprint, contribute to a sustainable future by making improvements, and increase environmental awareness among employees through various training and activities. New Product: Mortgage for Azerbaijani Citizens PASHA Bank launched its mortgage product targeting Azerbaijani citizens with the slogan “Don’t be a Guest in the Sister Country, Be a Homeowner” in Baku in 2022. With the intense demand from Azerbaijani citizens in 2023, PASHA Bank conducted another launch event in Baku, thereby increasing its share of mortgage loans in its credit portfolio. PASHA Bank became the main sponsor of the 3 rd Istanbul Digital Art Festival. Since its establishment in 2015, PASHA Bank has aimed to blend its cultural structure with artistic connections, always striving to support art and artists. In this context, in 2023, PASHA Bank once again became the main sponsor of the festival, which was held at the AKM (Atatürk Cultural Center) from June 2 nd to June 5 th , themed “Is digital art the result of human molecules?” The festival was curated by Türkiye’s first artificial intelligence curator Avind, along with Julie Walsh and Esra Özkan, and featured works by Azerbaijani artificial intelligence artist Shusha, as in previous years. Throughout the festival, in addition to audio and visual performances, panels and workshops were held on various topics such as artificial intelligence, entrepreneurship, bio art, bio design, and 6G technologies. PASHA Bank enthusiastically celebrated the 100 th anniversary of our Republic. PASHA Bank employees celebrated the 100 th anniversary of our Republic with great enthusiasm at the reception held at the Headquarters, PASHA Plaza... PASHA Bank established the “Future Women Leaders” scholarship fund, which was launched specifically for the 100 th anniversary of our Republic and will continue in the coming years. This scholarship fund aims to help female students at universities achieve their educational and career aspirations. It not only contributes to their education but also provides opportunities for young women to contribute to society as strong leaders. By supporting the academic, social, and personal development of female students, this scholarship will contribute to their becoming the leaders of tomorrow. A FIRST IN TÜRKİYE PASHA BANK MADE A PIONEERING MOVE IN THE TURKISH CAPITAL MARKETS WITH THE ISSUANCE OF WHEAT PRICE-INDEXED ASSET-BACKED SECURITY 11 PASHA Bank 2023 Annual Report General Information Information on Management and Corporate Governance Principles Financial Information and Risk Management Review