Ukrainian banks ended the first quarter with a loss of UAH 160 million. This is due to the formation of reserves for risks.
Ukrainian banks have received 10.1 billion hryvnia losses due to the formation of reserves for predetermined risks of war. This was reported by the press service of the National Bank on Friday, April 29.
At the same time, in January-February, the net income of banks reached UAH 9.9 billion. And according to the results of the first quarter, the loss of the banking sector reached UAH 160 million.
Noted that banks have built up reserves for the quarter for UAH 21.57 billion, of which in March – for UAH 15.86 billion.
The regulator recalls that since the beginning of the war, banks have introduced credit holidays and reduced commissions for the use of their services. This has a negative impact on interest income and commissions of financial institutions.
In relation to this, the growth rate of net interest income in March slowed significantly to 17% y/y, while in January-February this indicator grew by 35% y/y. Net fee and commission revenue fell 13% y/y in Q1 due to a 58% y/y decline in March.
At the same time, the result of the operation of banks remained positive: the net operating income before the provisions for the first quarter reached UAH 22.23 billion compared to UAH 13.69 billion in the first quarter of 2021.
The NBU predicts that the overall decline in business activity and decline in demand for loans and banking services will continue to negatively affect the profitability of banks. Losses from credit risk are expected due to the gradual impact of the economic crisis on the activities of borrowers. Therefore, it is possible to assess the impact of war on banks ’capital over time.
On April 1, of the 69 solvent banks, 44 banks received net income of UAH 5.85 billion, 25 – a loss of UAH 6.01 billion.
Recall that Ukraine has introduced a guarantee of 100% on bank deposits for the period of martial law.
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Source: korrespondent
