25 Apr 2023 16:11

National Bank of Ukraine board confirms record UAH 71.87 bln of profit transferred to budget

MOSCOW. April 25 (Interfax) - The National Bank of Ukraine board at a meeting on Tuesday confirmed that 79% or UAH 71.87 billion of its distributable profit for 2022 had been transferred to the state budget, Ukrainian media reported, quoting the bank's consolidated financial reporting for 2022, approved by the board on April 24.

According to the reporting, the remaining UAH 19.2 billion profit that can be distributed will, in keeping with the Law on the NBU, be used to increase the total reserves of the NBU, which must be 10% of the average annual volume of the NBU's monetary obligations.

The NBU's balance sheet total as of December 31, 2022 was UAH 1.959 trillion, compared with UAH 1.377 billion at end-2021.

The bulk of the assets at the end of 2022 consisted of non-resident securities, valued at UAH 695.5 billion, as well as UAH 241.5 billion of foreign currency funds and deposits, UAH 757 billion in Ukrainian securities and UAH 40.8 billion loans issued to banks and other borrowers.

The biggest changes in assets were caused by an 8% reduction of international reserves to $28.5 billion at end-2022, from $30.9 billion at end-2021.

Other factors included a doubling of the volume of securities in the National Bank's portfolio due to the acquisition in March-December 2022 of government bonds worth UAH 400 billion at face value in order to ensure the continuity of budget spending amid the crisis.

The credit portfolio declined by 58.3% due to the repayment by banks of long-term indebtedness on performing loans.

NBU liabilities as of December 31, 2022 were UAH 1.63 billion or 83% of the balance sheet total.

The main changes in liabilities occurred for notes and coin in circulation, rising 14% to UAH 715 billion; and certificates of deposit issued by the NBU, which doubled to UAH 457.5 billion.

The NBU's equity nearly doubled from UAH 166.9 billion to UAH 328.2 billion, due mainly to growth for reserves revaluation caused chiefly by changes in the hryvnia's official exchange rate against foreign currencies.

The NBU's consolidated profit was UAH 232.3 billion, including interest income of UAH 63.2 billion, up 2.2-fold from 2021, and a gain of UAH 175.6 billion from the revaluation of financial instruments.

A portion of this revaluation - UAH 142 billion - is an unrealized (previous) result, which, according to the Law on the NBU, is accumulated as a revaluation reserve in the National Bank's equity until these financial assets are realized.

NBU expenses related to the preparation of banknotes, coins and other products, administrative expenses and personnel expenses in 2022 amounted to UAH 6.7 billion, while in 2021 they amounted to UAH 5.8 billion.