PASHA_BANK_ANNUAL REPORT 2023

EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS (Continued) V. EXPLANATIONS AND NOTES RELATED TO STATEMENT OF CHANGES IN THE SHAREHOLDERS’ EQUITY 1. Information on financial assets at fair value through other comprehensive income “Unrealized gains and losses” arising from changes in the fair value of securities classified as financial assets at fair value through other comprehensive income are not recognized in current year income statements; they are recognized in the “Marketable securities value increase fund” account under equity, until the financial assets are sold, disposed or impaired. As of 31 December 2023, the Bank has booked TL 10,562 decrease (31 December 2022 – TL 1,998 increase) for marketable securities valuation difference related to financial assets at fair value through other comprehensive income. 2. Amounts transferred to legal reserves According to decisions of General Assembly held on 16 March 2023, TL 203,873 prior year’s income has been transferred to legal reserves. 3. Information on distribution of profit No profit distribution has been made as of the balance sheet date, and no dividend has been declared after the balance sheet date. 4. Information on capital increase: None. VI. EXPLANATIONS AND NOTES RELATED TO STATEMENT OF CASH FLOWS 1. Information on cash and cash equivalents Components of cash and cash equivalents and the accounting policy applied in their determination The effect of any change in the accounting policy of current period and the balance sheet recorded amounts of the components that make up cash and cash equivalents (excluding rediscount balances, reserve requirements, placements with maturity longer than 3 months and blocked accounts) are considered as cash and cash equivalents. a. Cash and cash equivalents at the beginning of the period Current Period Prior Period Cash 1,632,672 450,760 Cash and Foreign Currency Cash 72 26 Turkish Central Bank 1,632,600 450,734 Other - - Cash Equivalents 912,724 1,270,396 Banks 461,139 1,270,396 Interbank Money Market Placements 451,585 - Total Cash and Cash Equivalents 2,545,396 1,721,156 Collateral amounts on cash and cash equivalents (118,133) (302,810) Interest income rediscounts on cash and cash equivalents (2,213) (57) Cash equivalents with a maturity longer than three months - - Restricted reserve deposits (754,068) (408,406) Cash Flow Statements Cash and Cash Equivalents 1,670,982 1,009,883 240 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