The decrease in profits was affected by the increase in the tax rate for banks, as well as by changes in macroeconomic conditions.
Based on the results of work in the first quarter of 2024, the state-owned Privatbank received 13.86 billion hryvnias in net income, which is 14% less than in the same period last year. The bank’s press service reported this on Thursday, April 25.
It was noted that the decrease in profits was affected by the increase in taxation for banks, as well as by changes in macroeconomic conditions in both domestic and international markets.
Privatbank’s profit before tax in the first quarter amounted to 18.7 billion Hryvnia, income tax – 4.8 billion Hryvnia.
“The partial dilution of loan reserves as a result of the high quality of the loan portfolio has a positive impact on the results of the 1st quarter of 2024. At the same time, the bank’s reinvestment of funds from repayments on government bonds (in foreign currency) to bonds with longer terms require additional reserves for these securities, the message said.
In addition, the devaluation of the hryvnia in the first quarter of 2024 led to a negative revaluation of the bank’s foreign exchange position, which was offset by the positive result of the revaluation of indexed government bonds. In total, revaluations affected the result in the amount of UAH 1.4 billion.
Let’s recall that 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.
State Sberbank completed 2023 with a net profit of 6 billion hryvnias. This is a record level for the entire period of its work.
Source: korrespondent
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