The volume of net retail hryvnia loan portfolio in the 2nd quarter of this year increased for the first time since the start of the full-scale invasion - by 4.5% - primarily due to the resumption of card lending.
This is stated in the message of the National Bank, Ukrainian News Agency reports.
Mortgage lending volumes also increased by 2.7% due to the issuance of loans under the eOselia (eHome) program.
During the first two months of the 2nd quarter, the net hryvnia corporate loan portfolio was still declining, but in June it grew slightly - for the first time in the last 12 months.
Recognition by banks of credit losses due to war is insignificant.
The share of non-performing loans to individuals in the 2nd quarter for the first time since the beginning of martial law decreased by 2 percentage points, in particular, due to the cancellation of non-performing loans.
At the same time, on business loans, it increased by 0.4 percentage points.
The volume of liabilities of solvent banks for the 2nd quarter increased by 5.3% due to an increase in customer funds.
At the same time, the share of NBU refinancing in bank liabilities for the quarter decreased almost four times - to 0.2%, which corresponds to the level of July 2008.
The volume of hryvnia funds of individuals for the 2nd quarter increased by 7.5%.
In particular, fixed-term funds of the population in hryvnia increased by 14.1%, because banks increasingly competed with rates for longer deposits.
The volume of hryvnia corporate deposits increased by 12.9% in the quarter, although the growth rate slowed during the quarter.
Funds in the currency grew more slowly - by 6.8%.
The level of dollarization of customer funds for the quarter decreased by 2.1 p.p. to 36%.
For the population's funds, the reduction was more significant, up to 34.6%, due to the increase in hryvnia funds and a decrease in the popularity of foreign currency deposits.
The cost of 12-month deposits of individuals increased by an average of 1.3 percentage points to 15.2% per annum due to the ability for banks to invest in three-month NBU certificates of deposit at the discount rate.
This stimulated banks to further raise term deposit rates.
Rates on individual loans fell slightly during the quarter - to 28.5% per annum, and on business loans - fluctuated at the level of about 20% per annum.
In the 2nd quarter, the sector received almost the same profit as in the previous one - UAH 34 billion.
This was due to steady growth in net interest income, especially from highly liquid assets, and almost zero reservation.
It is noted that the beginning of the cycle of easing monetary policy will lead to a decrease in market interest rates.
Nevertheless, banks maintained a high net interest margin, so the risks of profitability in the near term are moderate.
The first results of the stability assessment of the 20 largest banks are optimistic: the NBU did not find significant underestimations of credit risk.
The need for capital for the sector is unlikely to be significant, and most banks are likely to be able to recover capital from current profits.
As Ukrainian News Agency earlier reported, banks of Ukraine in May 2023 issued 232 mortgages totaling UAH 322.5 million.
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