2022-08-11T15:25:00+03:00 Economy 2024-09-15T06:53:21+03:00

Ukrainian news

Banks’ Loss UAH 3.3 Billion In June

Banks’ Loss UAH 3.3 Billion In June

In June 2022, the loss of banks amounted to UAH 3.337 billion.

This is evidenced by the data of the National Bank, Ukrainian News Agency reports.

In January-June 2022, banks demonstrated a negative financial result of -UAH 4.6 billion.

In the second quarter, the net loss of the sector reached almost UAH 4.5 billion.

Net interest income growth slowed from 35% in January-February to 19% in March-June year over year.

All major banks offered borrowers "credit holidays," some financial institutions temporarily reduced rates on consumer loans.

This led to a sharp reduction in interest income in the retail segment.

Depressed demand for banking services limits banks' commission revenues.

Net commission income decreased for March-June by 35% year over year compared to 15% growth year over year in January-February.

Instead, the operating result of banks remained positive: net operating profit before deductions to reserves for the second quarter amounted to UAH 33.5 billion, compared to UAH 23.5 billion in the second quarter of 2021.

The negative financial result of the first half of the year determined significant volumes of existing reserves for expected losses due to the consequences of the war: banks formed reserves for UAH 57.9 billion, of which in March-June for UAH 52.1 billion.

As of July 1, 2022, out of 68 solvent banks, 47 banks were profitable and received a net profit of ah 10.0 billion, 21 - unprofitable with a loss of UAH 14.6 billion.

As Ukrainian News Agency earlier reported, in 2021, banks' profits amounted to a record UAH 77.5 billion.

In 2020, banks’ profits decreased by 29% to UAH 41.3 billion.

In 2019, solvent banks received UAH 59.634 billion of net profit.