According to published reports, the losses of “PrivatBank” from loans exceeded 210 billion USD by the end of 2018.
As reports “Диалог.UA” the credit portfolio of “PrivatBank” to the end of 2018 reached 212,8 billion hryvnia, whereas at the end of 2017 amounted to 185,58 billion. Thus, the total loss for the year 2018 is around 212 billion.
According to the law, a financial institution issued annual financial statements. It is worth noting that the Bank’s management acknowledged the presence of losses totaling 209,453 billion hryvnia allowance for expected credit losses on these loans as at 31 December 2018.
The Bank’s auditor E&Y noted that at the end of 2017, the Bank was recognised collateral in the amount of 5.61 billion hryvnia in the composition of the property passed to the Bank in the property as mortgagee, but in 2018 abolished the recognition of collateral and recognized the credit to the customer for this amount and impairment for the entire carrying value of the loan, which partly explains the growth of the loan portfolio associated with the former shareholders of the Bank.
Also clarifies that to obtain objective audit evidence sufficient about the real value of the property at the end of 2016 and 2017, it is simply impossible, which complicates the work of the auditor.
In the report the Bank also reminds that with its nationalization in December 2016, the capital was converted obligations by 10.93 billion hryvnia to customers and by 10.72 billion hryvnia – issued Eurobonds, and of 7.78 billion hryvnias subordinated debt.
We will remind, the management of “PrivatBank”, told about the catastrophic consequences of the abolition of its nationalization.