18.04.2017, 22:44
The National Bank to Transfer UAH 44.4 Billion to the State Budget of Ukraine Throughout 2017
OREANDA-NEWS. The National Bank is due to transfer UAH 44.4 billion worth of profit to the State Budget of Ukraine throughout 2017. This amount has been defined based on the central bank’s 2016 Consolidated Financial Statements for 2016, which last was signed by Governor of the National Bank of Ukraine Ms Valeria Gontareva and Ms Natalia Samoilova, Audit Partner in Deloitte Ukraine, and approved by the NBU Council.
The NBU’s net income for 2016 stood at UAH 74.4 billion. A major chunk of the regulator’s revenues and earnings come from net interest income on Ukrainian government bonds. In particular, the NBU earned interest income on domestic and external government bonds held in its portfolio that were purchased in the secondary market and accepted as collateral against refinancing loans. Interest income on liquidity support loans and stabilization loans (have not been extended by the NBU since 2015) is yet another important contributor to the total income. At the same time, the NBU interest expenses on NBU certificates of deposit (CD). As a result, the NBU’s net interest income net of provisions amounted to UAH 47.6 billion.
The NBU’s expenses (net of interest and commission expense) totaled UAH 6.0 billion. These included provisions for subsequent expenses, staff maintenance costs, banknote and coin production costs and general administrative expenses.
For the year ended 31 December 2016, the NBU’s net profit stood at UAH 68.5 billion.
The distributable profit for 2016 amounted to UAH 59.5 billion, of which UAH 15.1 billion would be used to increase the NBU’s general provisions. The rest of distributable profit UAH 44.4 billion shall be transferred to the State Budget of Ukraine.?
As in the previous year, the distributable profit will be transferred to the State Budget of Ukraine in several installments to mitigate the impact that changes in the amount of funds held by the Government will have on the banking system liquidity and the NBU’s ability to achieve the inflation targets by the NBU (8% +/- 2 pp by the end of 2017 and 6% +/- 2 pp by the end of 2018).
Currently, the installment schedule is currently being agreed by the NBU and the Ministry of Finance of Ukraine.
The NBU’s net income for 2016 stood at UAH 74.4 billion. A major chunk of the regulator’s revenues and earnings come from net interest income on Ukrainian government bonds. In particular, the NBU earned interest income on domestic and external government bonds held in its portfolio that were purchased in the secondary market and accepted as collateral against refinancing loans. Interest income on liquidity support loans and stabilization loans (have not been extended by the NBU since 2015) is yet another important contributor to the total income. At the same time, the NBU interest expenses on NBU certificates of deposit (CD). As a result, the NBU’s net interest income net of provisions amounted to UAH 47.6 billion.
The NBU’s expenses (net of interest and commission expense) totaled UAH 6.0 billion. These included provisions for subsequent expenses, staff maintenance costs, banknote and coin production costs and general administrative expenses.
For the year ended 31 December 2016, the NBU’s net profit stood at UAH 68.5 billion.
The distributable profit for 2016 amounted to UAH 59.5 billion, of which UAH 15.1 billion would be used to increase the NBU’s general provisions. The rest of distributable profit UAH 44.4 billion shall be transferred to the State Budget of Ukraine.?
As in the previous year, the distributable profit will be transferred to the State Budget of Ukraine in several installments to mitigate the impact that changes in the amount of funds held by the Government will have on the banking system liquidity and the NBU’s ability to achieve the inflation targets by the NBU (8% +/- 2 pp by the end of 2017 and 6% +/- 2 pp by the end of 2018).
Currently, the installment schedule is currently being agreed by the NBU and the Ministry of Finance of Ukraine.
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