As of July 1, only eight banks out of 65 solvent financial institutions were unprofitable with a total loss of UAH 112 million.
Ukraine’s banking sector in January-June 2023 received a net profit of UAH 67.6 billion. This was announced by the National Bank on Tuesday, August 8.
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“Solvent banks in the first half of 2023 received UAH 67.6 billion net profit compared to UAH 4.6 billion loss in the same period last year,” the report said.
According to the regulator, the main factors of the sector’s profitability are the growth of interest income, mainly from highly liquid assets, and insignificant amount of reserve formation.
The banks operating profit increased by 35%. Net interest income for the first half of the year increased by 41% compared to January-June last year. Despite the increase in interest expenses as a result of higher interest rates on deposits, interest income increased significantly.
Banks’ net fee and commission income grew 22% yoy. Net operating income before provisions increased in the first half of 2023 by 57% YoY to UAH 87.4 billion.
The rate of reductions in injury reserves from active operations decreased by 92% compared to the figures for the first half of last year. In general, since the beginning of the full-scale raid, banks have built up reserves for loans worth UAH 103 billion.
The sector’s return on equity as of July 1 was 56% compared to -4% last year. Income tax accrued for the half year exceeded the corresponding annual figure of the most profitable in history in 2021.
As of July 1, only eight banks out of 65 solvent institutions were unprofitable with a total loss of UAH 112 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.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.