According to the Consolidated Financial Statements for 2015 that are subject to approval by the Council of the National Bank of Ukraine, the NBU intends to transfer a part of its profit worth UAH 38.164 billion to the State Budget of Ukraine. The amount subject to profit distribution to the State Budget of Ukraine is by UAH 164 million more than projected in the 2016 State budget.
The NBU’s net income for 2015 stood at UAH 85.2 billion. Interest income on Ukrainian government bonds accounted for the largest portion of the total net income. In particular, the NBU earned interest income on domestic and external sovereign bonds purchased in the secondary market and received as collateral against refinancing loans. Interest income on stabilization loans granted to banks to support their liquidity was yet another major contributor to the total net income. At the same time, the NBU incurred interest expense on NBU certificates of deposit (CD). As a result, the NBU’s net interest income net of provisions amounted to UAH 43.2 billion.
The NBU’s expenses (net of interest and commission expense) totaled UAH 3.9 billion. These included staff maintenance costs, banknote and coin production costs and general administrative expenses.
For the year ended 31 December 2015, the NBU’s net profit stood at UAH 81.4 billion.
Distributable profit for 2015 amounted to UAH 54.2 billion. Following the approval of the Consolidated Financial Statements for 2015 by the NBU Council, a portion of the distributable profit in the amount of UAH 16 billion shall be allocated to the NBU’s general reserves. Another portion of the distributable profit in the amount of UAH 38.164 billion shall be transferred to the State Budget of Ukraine.
In 2015, the NBU’s assets expanded by UAH 272 billion or by 47%, totaling UAH 849.2 billion. In particular:
Ukraine’s international reserves increased by USD 5.8 billion or 77%, reaching USD 13.3 billion as at the end of the year. Last year's increase in the international reserves was mainly attributable to the arrival of funding from the IMF and related official financing. Additionally, the NBU replenished its international reserves through FX purchases in the interbank FX market and through FX exchange auctions, which were launched in September 2015.
In 2015, the NBU’s assets denominated in domestic currency expanded by UAH 57 billion or by 13%, reaching UAH 483 billion. The increase in assets was attributable to the increase in holdings of Ukrainian government bonds by UAH 73.7 billion up to UAH 404.5 billion, which was fueled by purchases of domestic sovereign bonds denominated in domestic currency in the secondary market.
At the same time, the decrease in loans held by the NBU, including loans granted to banks to support their liquidity, stabilization loans and loans to the Deposit Guarantee Fund contributed to the reduction in assets. The loans held by the NBU shrank by UAH 8 billion to UAH 115.6 billion. The change in the amount of assets denominated in domestic currency was due to an increase in allocations to loan loss provisions against loans granted by the regulator to banks and other borrowers. During the year, loan loss provisions increased by UAH 8.3 billion to UAH 50.4 billion.
The NBU’s liabilities increased by 46%, totaling UAH 726.3 billion.
The NBU’s liabilities denominated in foreign currency expanded by 51% to USD 10.1 billion. The increase in liabilities was mainly driven by an increase in foreign currency borrowings, including loans from the IMF and currency swaps with the central banks of Sweden and China. These funds were used to replenish Ukraine’s international reserves.
The NBU’s liabilities denominated in domestic currency increased by 15% and amounted to UAH 485 billion. The increase in liabilities was attributable to the fact that the NBU kept high interest rates and stepped up the issuance of certificates of deposit to absorb surplus liquidity and prevent it from exerting pressure on the FX market. As a result, the amount of certificates of deposit (CDs) in circulation increased sharply by UAH 70.2 billion, reaching UAH 89.8 billion.
The NBU’s capital expanded by UAH 42 billion or by 52%, amounting to UAH 122.8 billion.
Pursuant to Article 5 of the revised version of the Law of Ukraine On the National Bank of Ukraine, the NBU’s financial statements shall be compiled in accordance with IFRS and shall be subject to approval by the NBU Council.
The NBU Council has yet to be formed by the President and the Verkhovna Rada of Ukraine. The tenure of the former Council expired on 10 September 2015.