In the 1st quarter of 2025, the banking sector earned UAH 40 billion in profit, 65.7% of which was generated by state-owned banks, including JSC CB PrivatBank.
This is stated in the NBU report, the Ukrainian News agency reports.
Over the same period last year, banks earned UAH 40.5 billion.
10 small banks were unprofitable with a total loss of only UAH 0.4 billion.
The basis of profitability is high operational efficiency with low provisions.
However, the interest margin narrowed slightly during the quarter - to 7.4%.
The profitability of the banking system as a whole is normalizing, the income structure is approaching the pre-war level.
Sufficient profit supports the capital of banks, allowing them not only to continue to meet regulatory requirements, in particular, based on the results of the sustainability assessment, but also to increase lending to the economy.
While tax uncertainty has so far held back banks' investment plans.
Capital adequacy declined in the first quarter due to banks reflecting the increased income tax in 2024 and as of April 1 was about 16% for all capital levels.
Only one small bank periodically violated the regulatory capital adequacy ratio.
As the Ukrainian News agency earlier reported, solvent banks, according to preliminary data, received UAH 103.7 billion in net profit in 2024 due to the steady growth in the volume of high-quality loans and investments in government bonds, which is 25% more than in 2023 (profit was UAH 83 billion).
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