PASHA_BANK_ANNUAL REPORT 2023

EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS (Continued) 5. Information on other operating income Other operating income includes TL 41,542 reversal of prior year specific and expected loss provision and there is no income regarding extraordinary accounts (31 December 2022 – TL 13,366 special provision and expected loss provision reversal and TL 42,173 building impairment reversal). 6. Provision expenses related to loans and other receivables Current Period Prior Period Expected Credit Loss (1) 45,691 17,567 12 Month Expected Credit Loss (Stage 1) 29,002 17,323 Significant increase in credit risk (Stage 2) 16,689 244 Non-Performing Loans (Stage 3) - - 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 Total (2) 45,691 17,667 (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 4,149 (31 December 2022 – TL 4,301 net provision expense). 7. Information related to other operating expenses: Current Period Prior Period Reserve for employee termination benefits (1) - 1,061 Bank social aid fund deficit provision - - Fixed assets impairment expense - - Depreciation expenses of fixed assets 5,055 4,961 Intangible assets impairment expense - - Goodwill impairment expense - - Amortization expenses of intangible assets 5,684 3,479 Shares (capital method applied) impairment expense - - Impairment expense for investment securities that will be disposed - - Amortization expenses of investment securities that will be disposed - - Impairment expenses for property and equipment held for sale purpose and terminated operations - - Other operating expenses 46,989 25,089 Leasing expenses related to TFRS 16 exemptions 752 14 Maintenance expenses 8,621 5,438 Advertisement expenses 2,410 1,144 Other expenses 35,206 18,493 Loss on sales of assets 24 8 Other 23,992 10,475 Total 81,744 45,073 (1) Provision expenses for unused vacation provision and employee termination benefits are presented in personnel expenses at profit and loss statement. 237 PASHA Bank 2023 Annual Report Notes to Unconsolidated Financial Statements at 31 December 2023 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 General Information Information on Management and Corporate Governance Principles Financial Information and Risk Management Review