The auditors identified additional losses of the Bank in the period before nationalisation
The national Bank of Ukraine commented on audit reports of audit of the annual financial statements of banks as of 31 December 2018. This is stated in the press service of the NBU.
As noted in the NBU, the audit reports confirm accurate reflection of the banks key information on the financial status, financial results and cash flows in accordance with International financial reporting standards.
“At the same time, individual banks that belong to the 25 largest share of banking sector assets, the auditors expressed an opinion with reservation and restatement. Most of the material he was in “PrivatBank”, – stated in the message.
So, in 2018, “PrivatBank” received additional information on the value of the property, which was accepted by the Bank on balance to the nationalization for the repayment of loans associated with the former shareholders of the Bank companies. In connection with obtaining additional information on the property the Bank has restored the balance of these loans has formed thereon the reserves and reduced the carrying value of the collateral on these loans by 5.6 billion UAH. Therefore, the total losses of the Bank that are equal to established reserves for loans that the former owners were given to related companies increased up to 209.4 billion.
At the same time, the Bank incurred expenses on formation of reserves do not affect its current operations as the Bank has sufficient capital cushion, and performs the regulatory requirements of the NBU, which was confirmed by the auditor “PrivatBank”.
“We started working with the received reports and can now draw some conclusions. First, we are pleased with the quality of reports of banks. Second, the amount recognized during the data correction “PrivatBank” losses that the auditor has confirmed, once again illustrated the scale of the problems that arose from the lending institution in the past companies associated with the former owners,” – said the Director of the financial stability Department of the National Bank of Ukraine Vitaly vavrischuk.