In January-March 2022, banks demonstrated a negative financial result of UAH 160 million due to the net loss received in March in the amount of UAH 10.07 billion.
The NBU has said this in a statement, Ukrainian News Agency reports.
In January-February, the net profit of the banking sector amounted to UAH 9.91 billion.
With the outbreak of a full-scale war, banks introduced credit holidays and reduced fees for the use of their services.
This negatively affected the interest and commission income of financial institutions.
Thus, the growth rate of net interest income in March slowed significantly - to 17% year over year, while in January-February this figure increased by 35% year over year.
Net fee and commission income contracted for the first quarter by 13% year over year due to a 58% fall in March year over year.
However, the operating result of banks remained positive: net operating profit before deductions to reserves in the first quarter amounted to UAH 22.23 billion compared to UAH 13.69 billion in the first quarter of 2021.
The negative financial result of the first quarter was determined by significant volumes of formed reserves for expected losses due to the consequences of the war: banks formed reserves for UAH 21.57 billion for the quarter, of which UAH 15.86 billion in March.
The overall decline in business activity and the drop in demand for loans and banking services will continue to negatively affect the profitability of banks.
Losses from credit risk are expected, given the gradual impact of the economic crisis on the activities of borrowers.
Therefore, it will be possible to assess the impact of war on bank capital only over time.
The National Bank welcomes the banks' proper reflection of financial indicators and is convinced of the importance of understanding the genuine state of banks in order to maintain the financial stability of the banking sector.
As of April 1, 2022, out of 69 solvent banks, 44 banks were profitable and received a net profit of UAH 5.85 billion, 25 - unprofitable, with a loss of UAH 6.01 billion.
As Ukrainian News Agency earlier reported, in 2021, the profit of banks amounted to a record UAH 77.5 billion.
In 2020, the profit of banks decreased by 29% to UAH 41.3 billion.
In 2019, solvent banks received UAH 59.634 billion of net profit.
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