As of January 1, only seven of the 63 solvent banks were unprofitable, with a total loss of UAH 245 million.
By the end of 2023, solvent banks of Ukraine received 86.5 billion hryvnias in net income. This is almost four times higher than the figure for 2022 and 12% more than the results of 2021, the National Bank reported on Tuesday, February 13.
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It was noted that the operating profit of banks increased moderately: operating income for the year increased by 15% compared to last year, net operating profit before reductions in reserves – by 19%. And the driver of the sector’s income growth remained rising interest income – both from highly liquid assets and lending.
The main factor behind the significant difference in profitability compared to the previous year was significantly lower allocations to reserves for losses from active operations, which decreased by 86% for the year, the report said.
So, since the beginning of the full-scale invasion of the Russian Federation, banks have built up reserves in the amount of UAH 133 billion, of which in 2023 – only UAH 17 billion.
The National Bank recalled that in December 2023, in accordance with changes in the law, banks added an additional annual amount of income tax in general at an increased rate of 50%.
The return on capital of the banking sector on January 1, 2024 was 31.6%. A year ago this number was 9.7%.
The regulator also noted that the bank stability assessment conducted in 2023 confirmed that most financial institutions in Ukraine have sufficient capital, and the banking system as a whole has a high margin of safety.
As of January 1, 2024, according to annual indicators, only seven out of 63 solvent banks were unprofitable with a total loss of UAH 245 million.
Let’s recall that at the end of 2022, the total income of Ukrainian banks decreased three times – to 24.7 billion hryvnias – compared to the record year of 2021.
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.