NBU assets were up 3% in the first half of the year

Published by
Peter Kavinsky

According to the results of the first half of 2022, the asset volume of the National Bank increased by 3% and reached almost UAH 1.417 billion.

According to Ukrinform, this is reported by press service of the NBU based on the results of the condensed consolidated interim financial statements for the first half of 2022

The regulator noted that opposition to Russia’s large-scale armed aggression against Ukraine significantly affected the National Bank’s balance sheet structure. Mainly as a result of the purchase by the National Bank of military government bonds, the share of Ukrainian securities in the NBU portfolio increased from 23.5% (at the beginning of the year) to 39%.

However, the NBU noted that due to a decrease in the volume of gold and foreign exchange reserves, the proportion of the assets that make up them fell from almost 63% (at the beginning of the year) to 48% (including due to a decrease in the share of non-resident securities).

At the end of the first half of the year, the National Bank’s loan portfolio fell by 9.7%, despite the significant temporary increase at the start of the war.

Half of the total loan portfolio consists of long-term debt, whereby the debt volume has decreased by more than a quarter.

With regard to the obligations of the National Bank, the deposits of the banks rose significantly in the first six months of 2022 (by 40%), partly due to a decrease in the volume of certificates of deposit (by 11%). The volume of the liabilities to the International Monetary Fund decreased by 8.3%, mainly due to the planned repayment of part of the debt to the Fund in the first half of 2022.

The amount of the consolidated profit of the National Bank for the first half of this year amounted to UAH 69.7 billion. Most of this result of the National Bank’s activity are interest income – more than UAH 41 billion, which is 1.7 times more than in the corresponding period last year. This is due to both an increase in the volume of interest-bearing assets and an increase in interest rates.

The NBU noted that the overall result was also significantly affected by the results of the revaluation of financial instruments – amounting to more than UAH 42 billion.

At the same time, the regulator noted that the consolidated profit shown in the annual accounts of the National Bank is not part of the distributable profit to be transferred to the state budget. The obligation of the National Bank in terms of profits to be transferred to the State budget for distribution will be formed on the basis of the results of the entire 2022 and will be made public in the spring of 2023.

Forecasted expectations of the National Bank regarding the amount of part of the profits to be distributed before 2022, which will be transferred to the state budget in 2023, is 19.4 billion UAH.

Also read: Despite the war, 47% of companies in Ukraine expect growth next year

The regulator noted that the final volume of the portion of the profits to be distributed by the National Bank that will be transferred by the National Bank to the State budget in 2023 will depend on the actual macroeconomic indicators in 2022 and will be determined after confirmation by an external audit and approval by the Council of the National Bank of the annual accounts for 2022

As reported, in connection with the armed aggression of the Russian Federation against Ukraine, on February 24, 2022, the National Bank transferred part of the profit for distribution amounting to 18.8 billion UAH to the state budget, pending confirmation by the external auditor and approval by the Council of the National Bank of the 2021 consolidated annual accounts. This amount was subsequently confirmed by an external audit and approved as part of the 2021 annual accounts.

Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org

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