Privatbank declares profit of UAH 13.2 bln in January-May

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According to the NBU, in January-May Privatbank declared income of UAH 13.2 billion.

Raiffeisen Bank Aval (UAH 1.95 bln), UkrSibbank (UAH 1.2 bln), OTP Bank (UAH 1.1 bln), PUMB (UAH 1.099 bln) are also among the top 5 banks with the highest profit.

The top five banks with the highest losses are Sberbank (- UAH 614 mln), Ukrsotsbank (- UAH 375 mln), Credit Dnipro (- UAH 152 mln), Misto Bank (- UAH 24 mln), Pravex-Bank (- UAH 20 mln).

As Finbalance wrote, in 2018 PrivatBank declared a profit of UAH 12.8 billion. The bank announced a plan to get a positive financial result at the end of 2019 in the amount of more than UAH 10 billion.

At the same time, the bank noted that at the end of 2018 the "reasonably possible" weakening of the hryvnia rate by 20% against the dollar could damage it by UAH 10.6 billion, and strengthening of the hryvnia against the dollar by 5% would bring a profit of UAH 2.66 billion.

In November 2018, Deputy Chairman of the Privatbank`s Management Board Halyna Pakhachuk stated that about half of the bank`s interest income is generated by state bonds received during the nationalization.

Privatbank`s Chief Financial Officer Anna Samarina specified that in 2018 the bank received UAH 11 billion of gross interest income from government bonds (domestic government bonds), and UAH 17 billion from loans.

According to A.Samarina, the level of service of PrivatBank`s "toxic" portfolio of loans issued to companies and individuals linked to the former owners and top management of the bank fell to 13% in 2018 from 18.5% in 2017. "The real cash flow from this toxic portfolio was UAH 1 billion (UAH 1 billion from UAH 9 billion - ed.), and UAH 8 billion was accrued and closed by reserves... In 2017, UAH 15 billion was accrued, and UAH 2.8 billion was received, "- the banker noted.

Н.Pakhachuk reported that since January, Privatbank has received almost nothing to service its "toxic" portfolio of loans to individuals associated with former owners and top management of the bank. "Since January, the flow has almost stopped. Before that (it was serviced) 2% of the total. Even in our budget, when we forecast the financial result directly, we take zero percent of expectations from this flow in the budget," Н.Pakhachuk said.

In June, Н.Pakhachuk stated that "companies, which are probably under the control of the former owners of the bank, as of today, owe the bank 240 billion hryvnias in hryvnias equivalent" (quote). "212 billion of them are audit-proven loans plus interest accrued but not received. And as a result, when the exchange rate increases, so does the liability for the currency position.

After the nationalization of Privatbank, the NBU has publicly claimed that more than 95% of the corporate loan portfolio of the financial institution consists of insider loans. Ihor Kolomoiskyi denied this information.