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Economy 2019-03-15T04:05:21+02:00
Ukrainian news
Banks' Profit UAH 21.7 Billion In 2018

Banks' Profit UAH 21.7 Billion In 2018

In 2018, solvent banks received a net profit of UAH 21.7 billion.

The NBU said this in a statement, Ukrainian News Agency reports.

The last time the banking system was profitable in 2013, when its profit amounted to UAH 1.4 billion.

A significant increase in the profitability of the banking system in the past year was made possible due to a decrease in allocations to reserves with a steady growth in interest and commission income.

In particular, the amount of deductions by banks to reserves decreased by more than half - from UAH 49.2 billion in 2017 to UAH 23.7 billion in 2018.

At the same time, net interest and commission income of the banking system increased by an average of 38%.

The main source of interest income continues to be banks' income from lending to legal entities (46% of the total volume), investments in securities (27%) and lending to individuals (26%).

At the same time, the strengthening of the role of commission income occurred in the context of the development of cash and other related lending payments - to 25% in the structure of all revenues.

Also last year, the number and share of unprofitable banks decreased significantly.

Thus, out of 77 solvent banks as of January 1, 2019, 64 banks were profitable and received a net profit of UAH 34.4 billion, which covered the losses of 13 banks by UAH 12.7 billion.

Profit in 2018 was formed mainly by a group of banks with foreign capital (UAH 15 billion profit per year) and PrivatBank (UAH 11.7 billion).

Unprofitable were banks with state Russian capital (UAH 11 billion loss).

As Ukrainian News Agency earlier reported, following the results of 2017, 19 out of 82 banks operating at that time were unprofitable.

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