Ukrainian Banks Report Impressive Profits of 110 Billion UAH in Nine Months
Date: 2023-11-11 Author: Dima Zakharov Categories: ECONOMY
Robust Growth in Sector Profitability
Despite increased interest expenses due to higher deposit rates, the banking sector experienced a substantial rise in interest income. The operational income of banks saw a 17.9% year-on-year increase, and net interest income surged by 38.7% compared to the same period last year.
Commission Income and Operational Profits
Net commission income from January to September witnessed a 5.4% year-on-year growth. Although the growth rate gradually slowed, particularly in payment card operations, net operational profit before provisions increased by 23.9% year-on-year, reaching 139 billion UAH.
Resilience in Loss Provisions
The National Bank highlights a significant reduction in provisions for losses from active operations, down by 94.2% compared to the previous year. Since the onset of the full-scale invasion, banks have set aside reserves for loans totaling 104 billion UAH.
Capital Profitability and Tax Milestones
As of October 1, 2023, the sector's capital profitability stood at an impressive 56.9%, compared to a mere 4.3% a year ago. The accumulated profit tax for the first nine months surpassed the historically most profitable year of 2021.
Limited Losses
By October 1, 2023, only six out of 63 solvent banks reported losses, amounting to a cumulative 155 million UAH.
Despite increased interest expenses due to higher deposit rates, the banking sector experienced a substantial rise in interest income. The operational income of banks saw a 17.9% year-on-year increase, and net interest income surged by 38.7% compared to the same period last year.
Commission Income and Operational Profits
Net commission income from January to September witnessed a 5.4% year-on-year growth. Although the growth rate gradually slowed, particularly in payment card operations, net operational profit before provisions increased by 23.9% year-on-year, reaching 139 billion UAH.
Resilience in Loss Provisions
The National Bank highlights a significant reduction in provisions for losses from active operations, down by 94.2% compared to the previous year. Since the onset of the full-scale invasion, banks have set aside reserves for loans totaling 104 billion UAH.
Capital Profitability and Tax Milestones
As of October 1, 2023, the sector's capital profitability stood at an impressive 56.9%, compared to a mere 4.3% a year ago. The accumulated profit tax for the first nine months surpassed the historically most profitable year of 2021.
Limited Losses
By October 1, 2023, only six out of 63 solvent banks reported losses, amounting to a cumulative 155 million UAH.
