2024-02-13T10:36:00+02:00 Politics 2024-09-15T04:41:19+03:00

Ukrainian news

Banks boost profits 4 times to UAH 86.5 billion in 2023

Banks boost profits 4 times to UAH 86.5 billion in 2023

According to preliminary data, in 2023, solvent banks before confirmation by the annual audit, received UAH 86.5 billion in net profit.

This follows from the National Bank of Ukraine (NBU) data, the Ukrainian News agency reports.

This is nearly four times the 2022 figure and 12% higher than the 2021 results before the full-scale invasion.

Banks' operating profits increased moderately: operating income for the year increased by 15% compared to the previous year, and net operating profit before deductions to reserves - by 19%.

The driving force behind the sector's income growth remains the increase in interest income from both highly liquid assets and lending.

The main factor behind the significant difference in profitability, if compared with the previous year, was significantly smaller deductions to reserves for losses from active operations, which decreased by 86% over the year.

In general, since the beginning of the full-scale invasion, banks have formed reserves in the amount of UAH 133 billion, of which in 2023 - only UAH 17 billion.

In December 2023, in accordance with changes to the legislation, banks added the annual amount of income tax based on the results of 2023 as a whole at an increased rate of 50%.

The return on capital of the banking sector as of January 1, 2024, was 31.6%.

A year ago, this figure was 9.7%. We will remind you that the assessment of the stability of banks conducted by the National Bank in 2023 confirmed that the majority of banks in Ukraine have sufficient capital and the banking system in general has a high margin of safety.

As of January 1, 2024, according to annual indicators, only seven out of 63 solvent banks were unprofitable, with a total loss of UAH 245 million.

As the Ukrainian News agency earlier reported, solvent banks earned UAH 130.550 billion in net profit for the period of the first eleven months of 2023.

In 2022, banks reduced their net profit by 68% to UAH 24.7 billion.

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 in net profit.