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) SECTION SIX OTHER EXPLANATIONS AND NOTES I. OTHER EXPLANATIONS RELATED TO OPERATIONS OF THE BANK a. Explanations on ratings of the Bank FITCH October 2020 National Long Term (tur) A- Stable b. Explanations on ratings of the Bank’s compliance score of Corporate Governance Principles JCR Eurasia Rating has assigned PASHA Bank an overall compliance score of (9.20) with CMB Corporate Governance Principles by revising it upwards along with a (Stable) outlook on 8 June 2020. II. EXPLANATIONS AND NOTES RELATED TO SUBSEQUENT EVENTS As a result of the change in the partnership structure of PASHA Bank OJSC on January 13, 2021; PASHA Holding LLC owned 56.82%, Ador LLC 28.18%, Arif Pashayev 9.99% and Mir Jamal Pashayev 5.01%. In accordance with the aforementioned amendment, the distribution of shareholders having control shares in the Bank is as follows. Name/Commercial title Share Amounts (nominal) Share percentage Paid-in Capital (nominal) Unpaid portion Leyla Aliyeva 182,065 36.413% 182,065 - Arzu Aliyeva 182,065 36.413% 182,065 - Arif Pashayev 83,931 16.786% 83,931 - Mir Jamal Pashayev 51,734 10.347% 51,374 - SECTION SEVEN EXPLANATIONS ON INDEPENDENT AUDITOR’S REPORT I. EXPLANATIONS ON INDEPENDENT AUDITOR’S REPORT The unconsolidated financial statements for the year ended 31 December 2020 have been audited by Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (A member firm of Ernst&Young Global Limited) and the independent auditor’s report dated 1 February 2021 has been presented preceding the unconsolidated financial statements. II. EXPLANATIONS AND NOTES PREPARED BY INDEPENDENT AUDITOR None. 220 Annual Report 2020 PASHA Bank Year-End Financial Report