Economy 2023-09-15T06:19:40+03:00
Ukrainian news
Ukrainian Banks Will Remain Stable In Pandemic And Resume Growth - S&P

Ukrainian Banks Will Remain Stable In Pandemic And Resume Growth - S&P

Ukraine, bank, banks, S&P, coronavirus pandemic, S&P Global Ratings

The S&P Global Ratings international rating agency notes that subsidiaries of foreign banks and private Ukrainian banks will remain stable in the context of the coronavirus pandemic and will resume growth in the retail and corporate segments.

This is evidenced by the agency's materials, Ukrainian News Agency reports.

It is noted that Ukrainian banks are well prepared to do business amid economic instability in 2020-2021 thanks to the clearing up of the banking system carried out by the National Bank of Ukraine (NBU), increasing capital and liquidity reserves, and improving the quality of banking regulation and supervision.

Banks' profits in 2021 are likely to be in line with 2020.

"We forecast growth in the segment of retail and corporate loans, but at the same time pressure on the net interest margin due to record low interest rates," the agency notes.

The cost of risk will remain high in 2021 at around 2.3% (up from around 3% in 2020).

The share of problem loans in the banking system will decrease from 41% at the end of 2020 to about 30% by the end of 2021 due to write-offs.

The main problems for the four state-owned banks in 2021-2022: clearing of balance sheets of non-performing loans issued in previous years; implementation of effective business strategies; improving the quality of corporate governance to prepare for partial or full privatization.

As Ukrainian News Agency earlier reported, S&P Global Ratings predicts the hryvnia exchange rate of 29.5 UAH/USD at the end of 2021.

Больше новостей о: Ukraine bank banks S&P coronavirus pandemic S&P Global Ratings