#1PASHA Bank PASHA Bank Turkey Financial Institutions & Investor Relations Presentation December 31, 2019#2Content PASHA Bank Turkey 2 Strategy 9 Ratings 10 PASHA Holding PASHA Group Banks 11 12 Financial Institutions & Investor Relations 1#3PASHA Bank Turkey Financial Institutions & Investor Relations 2#4Shareholdership Structure Ador LLC 30% Title/Name # of Shares PASHA Bank OJSC 254.795.121 Amount (000' TRY) 254.795 Share (%) 50,96% PASHA Holding LLC 245.000.000 245.000 49,00% Other Total 204.879 500.000.000 205 0,04% _500.000 100,00% PASHA BANK OJSC Arif PASHAYEV 10% Financial Institutions & Investor Relations PASHA Holding LLC 60% Arif PASHAYEV 25.0% PASHA HOLDING LLC Reveri LLC 37.5% BLESS LLC 37.5% 3#5Milestones Bank was established as Yatırım Bank A.Ş. 1987 2015 First Bond Issuance Ο 2016 Capital Increase from 255M TRY to 500M TRY as of May 2018 by PASHA Holding (becoming 49% direct shareholder) 2017 2019 2018 80% share transfer to PASHA Bank Paid in capital reached to 255M TRY Name changed to PASHA Yatırım Bankası A.Ş. First Bond Issuance for Customer First Eurobond Issuance in Azerbaijan First M&A deal completed Moved to new Head Office First Eurobond Issuance in Azerbaijan in EUR Financial Institutions & Investor Relations 4#6TRY Million Main Financials 510 897 Total Assets 1,350 1,726 +27,9 Credit (Cash&Leasing Receivables) Net 404 713 840 1,045 TRY Million 2016 2017 2018 Operating Revenue 46 37 27 2015 83 2019 104 +25.3 2016 2017 2018 Total Equity 506 231 245 261 2019 532 0000 00000 2016 2017 2018 2019 2015 2016 2017 2018 2019 Financial Institutions & Investor Relations LO 5 +5, +24,4#7BS - P&L Financials in '000 TRY 2016 2017 2018 2019 Cash & Cash Equivalents, Net 78,713 151,189 177,667 313,522 Cash Loans & Lease Receivables, Net 403,870 713,048 840,278 1,045,060 Investment Property 218,333 145,599 Total Assets 510,357 896,845 1,349,565 1,725,503 Borrowings 245,099 404,116 460,390 666,655 Debt Securities Issued, Net 181,741 318,492 475,964 Total Equity 244,658 260,607 505,657 531,610 Gross Operating Revenue 36,525 45,650 82,512 103,550 Net Income/(Loss) 14,005 16,008 (3,563)* 25,691 (*): Includes TL 42,2 million Provision for Decrease in Value of Real Estate Financial Institutions & Investor Relations 6#8Breakdown of Portfolios (2019) Financial Leasing,6% Manufacturing,10% Electricity, Gas and Water; 7% Trade, 5% Gross Loans By Sector Others, 6% Factoring, 13% Equity 31% Holding, 9% Construction, 22% Financial Institutions & Investor Relations Banking; 14% Funding Bills 1% Transportation, 8% Others 2% Banks 39% Eurobonds 27% 7#9Ratios Main Ratios 2016 2017 2018 2019 Equity / Assets 48.0% 29.1% 37.5% 30.8% ROAE 5.9% 6.3% 7.3%* 9.5%* ROAA 3.4% 2.3% 2.6%* 2.2%* Cost Income 45.5% 48.2% 33%* 29.4%* CAR 53.9% 31.4% 37.9% 32.0% NPL 0% 0% 0.3% 3.2% Cash Loans .net / Total Assets 79.1% 79.5% 62.3% 60.6% (*): excluding investment property. Financial Institutions & Investor Relations 8#10Facts & Strategy (2018-2020) ■ 500 million TRY Paid-in Capital ■ Support of Shareholder FACTS ■ Investment /Non-deposit taking bank ■ Strong regional presence One of the highest Paid-in Capital among the Investment Banks. - - A well known brand in AZ & GE Support of PH & PBA in Funding and Trade Finance STRATEGY ■ Client focused solutions ■ Energy, Construction, Tourism, Manufacturing, FI's ■ Project Finance, Leasing, Forfaiting, and Trade Finance ■ Syndications, Club Loans ■ M&A, Advisory for AZ, TR, GE Has significant contribution to balance sheet and P&L - PBT can build capabilities to have a right-to-win in the market within the strategic cycle - - Sector focus strategy enable PBT to create scale and relevance in specific areas - Focus will help the bank establish itself and its brand within the selected sectors and sub-sectors Financial Institutions & Investor Relations 9#11Ratings Led mermer, ملا قاق DEGLEDE Avercam pilni Saffat VEYA Cami FIBERGLASS Financial Institutions & Investor Relations Credit Rating Fitch Ratings has affirmed the National Long-Term Rating of PASHA Bank Turkey on December 20, 2019 at 'BBB+(tur)'. The Outlook is Stable. Corporate Governance Rating JCR Eurasia Rating, has assigned PASHA Bank Turkey an overall compliance score of (9.11) with CMB Corporate Governance Principles along with a (Stable) outlook on June 21, 2019. 10#12PASHA Holding PASHA Holding Group Ownership PASHA Bank 60% PASHA 100% Insurance PASHA Travel 60% PASHA 60% Construction PASHA 100% Life 100% Financial Institutions & Investor Relations PASHA Development Absheron hotel group 100% Kapital Bank 99.84% 11 11#13PASHA Group Banks PASHA BANK AZERBAIJAN in USD M Loans to Customers Assets Equity P&L ROAE PASHA BANK GEORGIA in USD M Loans to Customers Assets Equity P&L ROAE 2018 790 2.770 265 45 17% KAPITAL BANK AZERBAIJAN 2018 in USD M Loans to Customers 829 Assets 2.237 Equity 270 P&L ROAE 89 36% 2018 PASHA BANK TURKEY 2018 in USD M 44 Loans to Customers 159 122 Assets 256 41 Equity 96 1 3% P&L ROAE -1 n.a. Financial Institutions & Investor Relations 12#14Disclaimer All kinds of tables, analyses, graphics, and other information and documents located in the presentation have been prepared only for information purposes by PASHA YATIRIM BANKASI A.Ş. without having received any benefits and their accuracy and content are not guaranteed. Therefore, it is recommended to verify the accuracy of information before using the information, opinions, analyses, and tables obtained from this presentation. PASHA YATIRIM BANKASI A.Ş. and the Bank's employees cannot be held responsible for any direct and / or indirect material and moral damages and costs to arise as well as the damages that third parties may suffer due to the transactions made on the basis of such tables, analyses, graphics, and other information. PASHA YATIRIM BANKASI A.Ş. cannot be held liable for the errors, material or moral damages that may arise from the information and visual material contained in the contents of the presentation. All copyrights on the information and materials, registered trademarks, patents, intellectual and other property rights contained in the contents of the presentation, apart from the material owned by third parties, are reserved by PASHA YATIRIM BANKASI A.Ş. Financial Institutions & Investor Relations Phone: +90 212 705 8900 Email: [email protected] Treasury Phone: +90 212 705 8900 Email: [email protected] SWIFT: PAHATRISXXX BLOOMBERG: YATT Financial Institutions & Investor Relations 13#15Thank you... PASHA Yatırım Bankası A.Ş. PASHA Plaza, Sultan Selim Mahallesi, Hümeyra Sokak, No:2/7 34415 Kağıthane, İstanbul +90 (212) 705 89 00 www.pashabank.com.tr Financial Institutions & Investor Relations 14