Banks increase profits by 18% to UAH 40.5 billion in Q1

In the first quarter of 2024, solvent banks received UAH 40.5 billion of net profits, or 18% more than in the first quarter of 2023.

This is stated in the NBU message, Ukrainian News Agency reports.

The main factors for the growth of profitability in annual terms are an increase in interest income and significantly lower deductions to reserves for losses from active operations.

The basis of interest income remains investments in low-risk instruments: government bonds and deposit certificates of the National Bank.

Over the past year, banks have been more active in financing the needs of the government, increasing investments in government bonds.

This affected the structure of interest income: the share of banks' income from government bonds for the year (from April 1, 2023 to April 1, 2024) increased by 6.7 percentage points to more than 26%.

At the same time, banks are increasing lending: the volume of hryvnia business loans is growing for three consecutive quarters, retail loans - for more than a year.

From lending to legal entities and individuals, solvent banks in the first quarter of 2024 received UAH 34 billion in interest income, which is 13% more than in the same period of 2023.

This is the result of stable growth in customer loan portfolios since the middle of last year.

However, the reduction in rates on new loans affected the decrease in the profitability of the corporate loan portfolio.

Other financial indicators of the banking system for the first quarter of 2024:

- operating income of banks amounted to UAH 78.7 billion (+ 10.3% in annual terms);

- return on capital of the banking sector as of April 1, 2024 - 51.1%;

- the amount of income tax accrued by banks for the first quarter - UAH 10.3 billion.

As of April 1, only eight of the 63 solvent banks were unprofitable with a cumulative loss of UAH 111 million.

At the same time, the data on the annual profit of banks for 2023 were updated: the updated annual profit indicator of the banking system is UAH 83.2 billion.

Clarification of operational data is due to the additional payment by individual banks of income tax for UAH 3.2 billion.

As a result, the annual amount of income tax accrued by banks for 2023 amounted to UAH 76.6 billion.

As Ukrainian News Agency earlier reported, in 2023 banks increased profits 4 times to UAH 86.5 billion.

In 2022, banks reduced net profits by 68% to UAH 24.7 billion.

In 2021, banks’ profits were a record UAH 77.5 billion.

In 2020, banks’ profits decreased by 29% to UAH 41.3 billion.

In 2019, solvent banks received UAH 59.634 billion of net profits.

To request a correction, please send an email.