Banks’ Profit Down 29% To UAH 41.3 Billion In 2020

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

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

In 2020, banks received UAH 41.3 billion in a net profit, down 29% year over year when the banking sector earned UAH 58.4 billion.

The crisis resulting from the coronavirus worsened banks’ financial state; however, the impact was much lower than was expected in spring 2020.

The number of loss-making banks did not grow.

In 2020, 65 out of 73 solvent banks were profitable, and their net profit made UAH 47.7 billion, which covered the loss of eight banks worth UAH 6.4 billion.

In 2020, banks’ operating earnings were high, and the registered credit impairments were not excessive.

The banking sector’s profit is very concentrated: PrivatBank formed 61% of the overall gain (UAH 25.3 billion), and five most profitable banks – 89% of the profit.

The worst was the financial result in the fourth quarter over increased payments to reserves.

In the fourth quarter of 2020, banks’ net financial result made UAH 3.7 billion, down 73% quarter over quarter and down 63% year over year.

On the whole, reserves’ formation for expected losses was the primary reason for the deterioration of the financial result in 2020.

Several banks admitted worsening in the quality of assets over the financial trouble in borrowers.

As Ukrainian News Agency earlier reported, in 2019, solvent banks’ net profit was UAH 59.634 billion.

In 2018, solvent banks’ net profit was UAH 21.7 billion.

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