On 18 July 2022, the NBU Council approved the NBU’s Consolidated Management Report and Consolidated Financial Statements for 2021, which were confirmed by the independent audit company Ernst & Young Audit Services LLC.
As of 31 December 2021, the NBU’s balance-sheet total was UAH 1,376.9 billion (UAH 1,331.6 billion in 2020).
Changes in the NBU’s assets in 2021 were driven mainly by the following:
- International reserves increased by 6%, to USD 30.9 billion as of year-end 2021, up from USD 29.1 billion at the end of 2020.
- The loan portfolio grew considerably, by UAH 33 billion, to UAH 99.9 billion. The growth mostly came from long-term lending to banks. As of the end of 2021, receivables on such instruments amounted to UAH 88.9 billion.
The NBU’s liabilities changed as follows:
- Banknotes and coins in circulation grew by 12.4%, to UAH 627.8 billion.
- Certificates of deposit issued by the NBU increased by 30.2%, to UAH 212.9 billion.
- Liabilities to the IMF decreased by 15.3%, which was attributed mostly to the repayment of liabilities to the IMF in 2021 worth SDR 649 million.
A decrease in the NBU’s equity from UAH 184.9 billion to UAH 166.9 billion (by 9.8%) in 2021 resulted from a decrease in revaluation reserves, which was mostly attributed to the strengthening of the hryvnia.
The NBU’s financial performance was mainly influenced by the following:
- Net interest income and expenses were UAH 28.8 billion as of the end of 2021, up by 88.2% from 2020, mainly due to an increase in income on domestic government debt securities.
- The revaluation of financial instruments resulted in a loss of UAH 23.4 billion due to a change in the official exchange rate and the fair value of the financial instruments.
In 2021, the NBU’s administrative expenses, staff costs, and costs related to the production of banknotes, coins, and other products were UAH 5.8 billion (UAH 4.6 billion in 2020).
Thus, the NBU’s distributable profit for 2021 was UAH 31.6 billion. In accordance with the Law of Ukraine On the National Bank of Ukraine, the NBU transfers a part of its distributable profit to the State Budget of Ukraine and the other part to the general reserves of the NBU.
Unlike in previous years, due to russia’s military aggression against Ukraine, the NBU, on 24 February 2022, transferred to the state budget a portion of its distributable profit in the amount of UAH 18.8 billion before the verification of the Consolidated Financial Statements for 2021 by an external auditor and its approval by the NBU Council. This amount was later approved in the financial statements.
In line with the Law of Ukraine On the National Bank of Ukraine, the NBU’s remaining distributable profit of UAH 12.8 billion was allocated to increase the central bank’s general reserves, which must equal 10% of the average annual monetary liabilities of the NBU.
The consolidated financial statements are prepared according to IFRS and include information on assets, liabilities, and capital of the NBU, its subsidiary and associated companies, and total revenue and cash flows, as well as material accounting policies and additional information on the NBU’s operation and financial risk management.
The independent auditor's report states an unmodified opinion, i.e. the NBU’s consolidated financial statements, in all material aspects, presents reliable information on the NBU’s financial standing as of the end of the day of 31 December 2021, profits and losses, and cash flows.
In line with the Law of Ukraine On Protecting the Interests of Entities Submitting Reports and Other Documents During Martial Law or State of War, reports, including financial, accounting, and audit reports, must be submitted within three months after the martial law or state of war is suspended or lifted.
The impact of russia’s military aggression against Ukraine on the NBU’s operation is detailed in the note Events Subsequent to the Reporting Date of the Consolidated Financial Statements for 2021.