In nine months of 2024, solvent banks received UAH 118 billion in net profit.
This is stated in the message of the National Bank of Ukraine (NBU), Ukrainian News Agency reports.
The main factor of profitability remains the preservation of a high net interest margin due to the growth of lending volumes and investments in government domestic loan bonds.
In the 3rd quarter, the average yield of loans and the government domestic loan bonds portfolio practically stabilized, and the volume of such instruments continued to increase.
Thus, the volume of the gross hryvnia portfolio of loans granted to clients has increased by 14.5% since the beginning of 2024 (net portfolio - by 23.6%), the volume of investments in government domestic loan bonds - by 21.1%.
At the same time, the cost of funding decreased somewhat following the decrease in market deposit rates.
So, the banks have kept a fairly high net interest margin.
Despite the further increase in costs, operational efficiency remained high.
At the same time, the high quality of the loan portfolio led to a low level of deductions to reserves for credit risks.
According to the results of nine months of 2024, only eight small banks out of 62 solvent ones were unprofitable with a total loss of UAH 342 million.
These are mostly institutions with inefficient business models and a number of long-standing problems.
With the growth of financial results, the amount of income taxes charged by banks also increased, amounting to UAH 35 billion during this period.
The profitability of banks' capital for the nine months of 2024 was 45.8%, which is lower than the same indicator of the previous year - 56.9%.
If the law comes into force, providing for a 50% tax on bank profits in 2024, the return on capital in the sector will decrease to about 30%.
This will slow down the accumulation of capital by banks to strengthen their own sustainability and further lending to the economy.
As Ukrainian News Agency earlier reported, for 2023, according to updated data, banks received UAH 82.8 billion in net profit after charging UAH 76.2 billion of income tax at an increased rate of 50%.
Banks earned a record-breaking UAH 106.1 billion in 8 months, in August the profit was UAH 12.5 billion.
Who we are: About us, Contacts. How we write news and our principles: Editorial code. We did our best. If you found this valuable – please support us.
To request a correction, please send an email.