Solvent banks in the first half of 2023 received UAH 67.6 billion of net profit compared to UAH 4.6 billion of loss for the same period last year.
This is stated in the message of the NBU, Ukrainian News Agency reports.
The main factors of the profitability of the sector remain the growth of interest income, primarily from highly liquid assets, and insignificant amounts of reserve formation.
Banks' operating income increased by 35% y/y.
Net interest income for the first half of the year increased by 41% compared to January-June last year.
Despite the increase in interest expenses as a result of the increase in interest rates on deposits, interest income increased significantly.
Despite a certain slowdown in the spring months, in particular due to a decrease in card transactions, net commission income increased by 22% y/y.
Net operating profit before deductions to reserves increased in the first half of 2023 by 57% y/y to UAH 87.4 billion.
The pace of deductions to reserves for losses from active operations decreased by 92% compared to the indicators of the first half of last year.
In general, since the beginning of the full-scale invasion, banks have formed reserves for loans worth UAH 103 billion.
The sector's return on equity as of July 1, 2023 was 56%, compared to minus 4% a year ago.
The income tax calculated for the six months exceeded the corresponding annual indicator of the historically most profitable year 2021.
As of July 1, 2023, only eight banks out of 65 solvent institutions were unprofitable with a total loss of UAH 112 million.
As Ukrainian News Agency earlier reported, in 2022, banks reduced their net profit by 68% to UAH 24.7 billion.
In 2021, the profit of banks amounted to a record-breaking 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 in net profit.
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