As of April 1, only five banks out of 65 solvent institutions were unprofitable with a total loss of UAH 40 million.
The net profit after tax of solvent Ukrainian banks in January-March 2023 amounted to UAH 34 billion against a loss of UAH 152 million for the same period last year. This was announced by the National Bank on Friday, May 5.
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According to the regulator, the income of banks in January-March increased by 46.6% to UAH 103.984 billion, while expenses decreased by 1.6% to UAH 69.928 billion.
“The main factors of the profitability of the sector are the growth of income as a result of the gradual resumption of banking activity and the relatively insignificant amount of additional formation of reserves,” said the NBU.
Net interest income for the quarter was up 41%. “Despite a significant increase in interest costs as a result of higher interest rates on deposits, interest income grew more,” added the press service.
Net fee and commission income increased by 20% compared to Q1 2022. The volume of banking services continued with the gradual resumption of economic activity, including after the shelling of the energy infrastructure in end of last year and beginning of this year, says the NBU.
Also, the increase in banks’ profitability was facilitated by the positive results of currency purchase and sale operations, which in the first quarter were 2.3 times higher year-on-year.
As of April 1, 2023, only five banks out of 65 solvent institutions were unprofitable with total losses of UAH 40 million.
Recall that at the end of 2022, the total income of Ukrainian banks decreased three times – to UAH 24.7 billion – compared to the record-breaking 2021. So, from the beginning of 2023, banks have already earned more than the whole of 2022.
Source: korrespondent
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