Platinum Bank Presented its Annual Financial Report for 2014
Platinum Bank has published its annual financial report for 2014, in which are reflected the actual financial status of the bank as of the 31st of December 2014, as well as the results of its activities, the movement of funds and changes in the capital which took place within 2014. The report was drawn in accordance with the International Financial Reporting Standards (IFRS). Due to the general situation in the country, the bank closed 2014 with a loss of 506,733,000 UAH. The total sum of the provision for losses has significantly increased and amounted to 1,010,906 UAH, compared to 473,568 UAH in 2013. The price of resources (the weighted average interest rate for deposits of individuals and legal entities) as of the 31st of December 2014 was 18.7%. Despite the losses, the bank managed to keep the resources, implement the additional capitalization and develop the plan for financial recovery for two years.
Ekaterina Rozhkova, Acting Chairman of the Board, notes the following: “Platinum Bank closed the financial year with a loss, as did many other Ukrainian banks. Such result is due to the worsening economic situation, annexation of the Crimea and military conflict in the east-western part of the country, which provoked the panic and “outflow” of the capital from Ukraine – the whole set of problems, which impede the banks from conducting their business normally. As a result, the assets of Ukrainian banks worsen and do not return promptly. Besides, one can observe the ablation of liquidity, which has been going on for the whole year. It’s necessary to be realistic – we didn’t expect profits this year. We had to formulate adequate provisions, because the price of resources grew as we offer a rather high interest rate for the clients. However, the bank took active measures for compensating against the negative effect – implemented additional capitalization in 2014, approved the capitalization plan for 2015, obtained the re-financing loan from the NBU. The main thing now is to support the continuous operation of the bank and we are actively working on that.”
In 2014 the equity capital of the bank was increased by 119 MIO UAH, and also in December 2014 the bank received additional capitalization in the amount of 150 MIO UAH. By 01 July 2015 Platinum Bank plans to increase the equity capital by 469.5 MIO UAH. Additional capitalization will take place via the shareholders’ investment of 150 MIO UAH into the equity capital of the bank and via the re-classification of subordinated debt into the share capital by 319.5 MIO UAH. Also, before 01 January 2016, the 4th stage of the capital increase by 330 MIO UAH will take place via the receipt of funds under the conditions of the subordinated debt.