The Advisory Committee's Evaluation of the Bank's Activities in 2025 and Their Compliance with Interest-Free Banking Principles and Standards

The Advisory Committee carries out its activities under the Board of Directors in accordance with Article 5 of the Communique on Compliance with Participation Principles published on 19 December 2025. While operating within the organizational structure under the authority of the Board of Directors, the Advisory Committee acts in line with the principle of independence when making its decisions.

Within the scope of Compliance with Participation Principles, the organizational structure of Ziraat Katilim Bankasi consists of the Advisory Committee and the Advisory Committee Coordination Service. Secretariat activities are performed by the Advisory Committee Coordination Service under the Internal Control Department, while compliance activities are carried out by the Internal Control Unit of Business Processes.

The Advisory Committee Coordination Service fulfilled its activities in 2025 in line with the requirements of the business plan and the Compliance with Participation Principles framework. In accordance with the Communique on Compliance with Participation Principles, the annual programme was prepared together with the Advisory Committee, and meetings were held at least twice a month within this scope.

Pursuant to paragraph 1 of Article 9 of the Communique, the Advisory Committee held meetings and documented its decisions by including summaries, justifications and references related to the agenda items, as well as the justifications of dissenting members, where applicable. The communication of the decisions across the Bank and the related compliance controls were carried out by the Advisory Committee Coordination Service.

As envisaged in the Communique, the Advisory Committee held meetings with the Audit Committee to discuss internal audit findings and the actions to be taken accordingly. During these meetings, reports prepared regarding Compliance with Participation Principles and audit activities, as well as actions taken in response to identified findings, were reviewed and discussed.

Based on the information and documents submitted to its meeting agenda, the Advisory Committee conducted examinations and observations within the scope of its authority and responsibilities on the following matters:

a) Implementation of Participation Principles,

b) Compliance of internal regulations with Participation Principles,

c) Evaluation and approval of standard contracts and their annexes related to the Bank's products and services in terms of compliance with Participation Principles.

Considering the reports prepared regarding the implementation of Advisory Committee decisions, internal discussions within the Bank and other related matters, it has been observed that:

a) Due diligence has been exercised in ensuring compliance with the decisions of the Central Advisory Committee and the Bank's Advisory Committee,

b) Standard contracts and annexes related to Ziraat Katilim's products and services reviewed between 01.01.2025 and 31.12.2025, as well as related transactions and relationships, are in compliance with the decisions of the Central Advisory Committee and the Bank's Advisory Committee,

c) Income generated through sources and/or methods not compliant with Participation Principles has been calculated through the Bank's technological infrastructure, and such income has been purified and disposed of in accordance with the Standard on Non-Compliant Income within the framework of Participation Finance Principles defined by the Central Advisory Committee,

d) Disclosures regarding related expenditures have been made in accordance with paragraph 4 of Article 8 titled "Public Disclosure" of the Communique on Procedures and Principles Regarding Informing Customers and the Public within the Scope of Interest-Free Banking Principles and Standards,

e) A robust supervision and control mechanism has been established to ensure that participation accounts are managed in line with the interests of account holders, and the profit distribution system is managed by qualified personnel with relevant expertise,

f) Compliance and internal audit activities have also been carried out regarding the implementation of the decisions taken,

g) Training and awareness seminars have been organized for employees in order to support the development and strengthening of participation banking culture within the institution.