On 23 April 2019, the Council of the National Bank of Ukraine approved the NBU’s consolidated financial statements for 2018 signed by Deloitte & Touche USC PrJSC, an independent audit firm.
The NBU’s balance-sheet total reached UAH 1,049.4 billion as at 31 December 2018 (UAH 1,027.0 billion in 2017).
The profit mainly came from net interest income and gains from transactions with financial instruments and financial assets and liabilities in foreign currency.
Net interest income after provisioning amounted to UAH 34.9 billion in 2018 (UAH 45.2 billion in 2017).
However, exchange rate fluctuations affected the NBU’s performance. In 2018, for the first time since 2013, foreign currency revaluation resulted in a loss (UAH 2.2 billion). This was driven by the strengthening of the hryvnia against foreign currencies.
Gains on revaluation of debt securities carried at fair value amounted to UAH 6.7 billion (UAH 2.7 billion in 2017).
The NBU’s administrative expense and costs related to production of banknotes, coins, and other products amounted to UAH 3.78 billion (UAH 3.59 billion in 2017).
In addition, the reversal of provisions for legal obligations, including for obligations under lawsuits, brought in UAH 2.1 billion in 2018.
The distributable profit for 2018 amounted to UAH 68.46 billion. The NBU will allocate UAH 3.57 billion of the said profit to its general reserves pursuant to the Law of Ukraine On the National Bank of Ukraine. The remaining UAH 64.9 billion will be transferred to the state budget in 2019.
The distributable profit includes a one-off effect caused by a change in the accounting policy in terms of recording foreign exchange differences under transactions in foreign currency, monetary gold, and investment metals. Following the recalculation for 2012–2017, this effect amounted to UAH 22.01 billion.
The relevant schedule for transferring the share of the distributable profit for 2018 to the state budget for 2019 will be agreed with the Ministry of Finance of Ukraine. According to the Deloitte & Touche USC opinion, the NBU’s Consolidated Financial Statements were accurate and in all material respects reflected the financial standing of the regulator as at the end of 31 December 2018, as well as the results of its operation, its cash flows, and changes in its equity in line with International Financial Reporting Standards (IFRS).
Consolidated Financial Statements and Annual Consolidated Governance Report for 2018
For reference
The consolidated financial statements conform to IFRS and contain information on the NBU’s assets, liabilities, equity, subsidiary, associated companies, total income, cash flow, main accounting policies, and additional information on the NBU’s operation and its financial risk management.
The independent auditor's report contains an unmodified opinion, i.e. the NBU’s consolidated financial statements in all material aspects present credible information on the NBU’s financial standing, profit and loss, and cash flows.
Pursuant to the Law of Ukraine On Accounting and Financial Reporting in Ukraine, the NBU also drafted the first annual consolidated Governance Report to be published with the Consolidated Financial Statements for 2018.