PrivatBank shareholders to discuss NBU comments, measures to reduce risks on Aug 26

The shareholders of PrivatBank (Dnipro) at a meeting on August 26 will consider measures to reduce risks in the activities of the country's largest financial institution and enforcement of obligations to depositors and creditors.

The bank supervisory council included this supplementary item on the agenda of the meeting under the proposal of a shareholder.

"Resolving issues on taking measures to reduce risks in the bank's activities and ensure implementation of obligations to depositors and creditors in accordance with the report of the National Bank of Ukraine (NBU) dated July 27, 2016 on inspection of PJSC PrivatBank for the period from May 1, 2014 to January 1, 2016," reads a bank report in the information disclosure system of the National Commission on Securities and the Stock Market.

According to the draft decision on the matter, the PrivatBank board was instructed to take measures to reduce risks in the activities of the financial institution, while the supervisory council to monitor its implementation.

The shareholders' draft decisions also foresee refusal from payment of dividends and the increase in the bank's charter capital by UAH 2.583 billion through the use of 90.44% of net profit for 2015 for this purpose (UAH 215.6 million) and 90.49% of retained earnings from the previous years (UAH 2.368 billion). It is assumed that the nominal value of shares will be increased by UAH 34.03: it is planned to issue 75.916 million new common registered shares with a nominal value of UAH 314.03.