PASHA BANK ENG 20

PASHA Yatırım Bankası A.Ş. Notes to Unconsolidated Financial Statements at 31 December 2020 (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) (Convenience Translation of Publicly Announced Financial Statements Originally Issued in Turkish, See Note I of Section Three) EXPLANATIONS AND NOTES RELATED TO UNCONSOLIDATED FINANCIAL STATEMENTS (Continued) 8. Information on income/(loss) before tax from continuing or discontinued operations Profit before tax consists of net interest income/expense amounting to TL 75,892, net commission fee income amounting to TL 4,186, trading gain amounting to TL 5,476, other operating income amounting to TL 9,065, provision for loan losses and other receivables amounting to TL 4,548 and other operating expenses including personnel expenses amounting to TL 47,983. 9. Information on provision for taxes from continuing or discontinued operations As of 31 December 2020 the Bank has current tax expense TL 8,744 (31 December 2019 - TL 10,808) and the Bank has deferred tax income amounting to TL 641 and deferred tax expense amounting to TL 2,609 (31 December 2019 - TL 4,158 deferred tax income and TL 3,530 deferred tax expense). As of 31 December 2020, the Bank doesn’t have any discontinued operations. 10. Information on net income/(loss) from continuing or discontinued operations The Bank doesn’t have discontinued operations. The Bank’s net profit from continuing operations amounting to TL 31,376 (31 December 2019 - TL 25,691 profit). 11. Information on net income/(loss) for the period a. If the disclosure of ordinary banking transactions and the composition of income and expense items is necessary to understand the annual performance of Bank, the composition and amount of these items None (31 December 2019 - None). b. If an accounting estimate change significantly affects the profit/loss in the current period or has a probability to significantly affect the profit/loss in the subsequent periods, the overall effect is disclosed There is no significant change in accounting estimates which would affect the current or the subsequent periods. 12. Disclosure of 20% of sub-accounts in the case of other line items exceed 10% of the income statement total Information related to other income and other expense are presented in footnote numbered 5 and footnote numbered 7 on disclosure and footnotes related to income statement, respectively. 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 2020, The Bank has booked TL 96 loss (31 December 2019 - TL 221 gain) 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 30 March 2020, TL 25,734 prior year’s income has been transferred to legal reserves. 3. Information on distribution of profit No dividend distribution has been announced after the balance sheet date. 4. Information on capital increase: None. 216 Annual Report 2020 PASHA Bank Year-End Financial Report