PrivatBank Receives Profit Of UAH 3.7 Billion In Q1 Thanks To Results Of Pre-War Months

In January-March, PrivatBank received a net profit of UAH 3.7 billion thanks to the results of the pre-war months.

The bank said this in a statement, Ukrainian News Agency reports.

It is noted that the financial results of March were significantly affected by the abolition of interest on credit cards (UAH 1.3 billion of lost income for the month), the abolition of commissions for trade enterprises and for cash withdrawals, as well as commissions for most types of customer payments (UAH 1.1 billion).

In March, the first reserves were formed for expected losses as a result of hostilities: UAH 0.8 billion for credit risks and UAH 0.6 billion for cash losses due to the destruction of premises and ATMs.

In March, the bank admitted a loss of UAH 400 million.

PrivatBank notes that despite the work in the conditions of war, the increase in expenses with a decrease in the volume of operations and income, the bank remains operationally profitable: the net result without the influence of reserves for possible losses and revaluation of the influence of market factors (the value of foreign currency and securities) in March amounted to UAH 1.7 billion.

For comparison, the corresponding figure for January amounted to UAH 4.1 billion.

Client funds have grown by UAH 22 billion since the beginning of the year; the increase in March amounted to UAH 48 billion, taking into account the return of part of the balances removed in the pre-war period.

The net loan portfolio after reserving increased by UAH 6 billion in the first quarter.

To support the state and bring victory closer, the bank invests in military government bonds: the bank's share is about 40% both in the primary and secondary markets.

On March 3, the bank transferred an advance payment from dividends for 2021 in the amount of UAH 28 billion (80% of profit for 2021 according to preliminary unaudited reporting), as well as an advance on income tax in the amount of UAH 5 billion.

As of April 14, the bank operates 1,093 outlets (74%) and 6,077 ATMs (70% of total number).

As Ukrainian News Agency reported, 100% of PrivatBank is owned by the state represented by the Ministry of Finance.

The state-owned bank management strategy provides for the sale of PrivatBank within 5 years.