Solvent banks in Ukraine in January-March 2020 received UAH 15.974 billion in net profit, which is 23.8% more than in the same period in 2019 (UAH 12.902 billion), according to data published on the website of the National Bank of Ukraine (NBU). According to the report, the banks’ income for the three months of this year increased by 12.6% against the figure for the same period last year, to UAH 65.343 billion. In particular, commission income rose by 16.8%, to UAH 16.308 billion, and the result from revaluation and sale and purchase transactions by 2.1 times, to UAH 7.739 billion.
At the same time, the banking system’s expenses for January-March 2020 grew by 9.4% compared with this indicator in 2019, to UAH 49.369 billion, in particular commission expenses by 39%, to UAH 5.518 billion, and payments to reserves by 2.9%, to UAH 4.85 billion.
As reported, in 2019 Ukrainian banks increased profit by 2.7 times, to UAH 59.634 billion.
President of Ukraine Volodymyr Zelensky has said how it is important to continue to build the roads in Ukraine.
“I want to stress on how important to warm up our economy and give it an impetus after quarantine. That is why the Big Construction Program continues. In 2020, we will allocate UAH 85 billion to state roads and UAH 22 billion – to the local roads,” Zelensky said in a video address to Ukrainians on April 30.
According to him, this will help create thousands of jobs in all regions of our country.
Zelensky noted that on April 30 the issue of providing Ukravtodor with the first tranche from Ukreximbank to upgrade the roads was resolved.
“At the same time, schools, kindergartens and more than two hundred admission departments in supporting hospitals are of our top priority,” he said.
The Ministry of Economic Development, Trade and Agriculture predicts that Ukrainian farmers will harvest 63-65 million tonnes of grain and leguminous crops in 2020 against the previously projected 60 million tonnes. “Looking at the sown area, we expect the final gross grain production at the level of 63-65 million tonnes, which is 2.5 times more than the domestic market needs. We can formulate the final figure at the end of May, everything will depend on rains in this period. According to the forecast, they should be. Perhaps even the figure will be larger,” Deputy Economy Minister Taras Vysotsky said on the air of Ukraine 24 TV Channel.
Vysotsky noted that there are no threats to food security nationwide due to adverse climatic conditions, a critical situation has developed only in Odesa region.
“The losses there are large, sometimes up to 50% of the sowings. Now they’ll sum up the potential losses, they will transfer documentation, hold commissions and consider the possibility of financing from the reserve fund or other available instruments. We will study the situation in this region to support those farmers who have a large percentage of losses and there is a risk of becoming bankrupt,” the official said.
The Ukrainian government will propose to the Verkhovna Rada that a EUR 100 million 30-year loan provided by Poland at 0.15% per annum is unlocked. The respective bill was approved at the government meeting on Wednesday. “The loan agreement between the governments of Ukraine and the Republic of Poland entered into force in April 2016. However, due to difficulties with the performance of contracts by Polish enterprises, where Ukravtodor, road services in Lviv and Volyn regions, the State Fiscal Service (the assignee is the State Customs Service) act as customers, in particular with the import and purchase of necessary goods on the territory of Ukraine, the loan takedown amounted to only EUR 5.8 million,” the Finance Ministry said on its website.
The proposed changes clarify the list of operations, goods exempted from taxation, and the settlement of customs payments in Ukraine as part of the implementation of the relevant agreement between the governments of the two countries.
“Under the agreement, Ukravtodor will receive EUR 68 million (for the development of road infrastructure on the approaches to six checkpoints on the Ukrainian-Polish state border), the State Customs Service will get EUR 25 million (for the construction of checkpoints Shehyni, Krakovets, Rava-Ruska), the administration of the State Border Guard Service will receive EUR 7 million (for the reconstruction of seven departments of the border guard service),” the Finance Ministry said.
JSC Galnaftogaz Concern in January-March 2020 reduced its net profit by 7% compared to the same period in 2019, to UAH 318.852 million, according to the company data published in the information system of the National Securities and Stock Market Commission.
The company’s net income for the reporting period amounted to UAH 504.867 million, which is 31.7% less than a year earlier, gross profit increased by 5.2%, to UAH 265.998 million.
Galnaftogaz Concern operates one of the largest fuel fulling station chains in Ukraine. It includes about 440 filling stations, most of them under the OKKO brand. Among the minority shareholders is the European Bank for Reconstruction and Development (EBRD).
According to preliminary data, in 2019 Galnaftogaz increased its net profit by 76% compared to 2018, to UAH 945.192 million.
The net profit of Ukreximbank (Kyiv) in 2019 amounted to UAH 63.62 million, which is 13.4 times less than in 2018 (UAH 852.30 million), according to the bank’s report on the website.
According to the report, in the fourth quarter of 2019, the net loss of Ukreximbank amounted to UAH 2.21 billion, while in 2018 the bank declared a profit of UAH 146.06 million for this period.
One of the reasons for the decrease in profit in 2019 was a decrease in the bank’s interest income by 7%, to UAH 1.77 billion, which is associated with a decrease in the loan portfolio by 3%, to UAH 7.24 billion and the securities portfolio by 14%, to UAH 3.57 billion.
In terms of non-interest income, there was an increase in net commission income by 4%, to UAH 652.24 million. This partially offset the decrease in other incomes by almost 2 times, to UAH 105.09 million, due to a lack of one-time and irregular receipts.
In addition, the loss in the fourth quarter of last year and the decrease in profit in general for 2019 are explained by an increase in expected credit losses to UAH 3.039 billion from UAH 1.14 billion for three quarters, while in 2018 the bank, on the contrary, received an additional UAH 1.64 billion.
The bank’s assets in 2019 decreased by 13.2%, to UAH 140.34 billion, in particular loans to customers by 26.5%, to UAH 53.28 billion.
The bank’s liabilities decreased by 14.2%, to UAH 131.43 billion, in particular, debt to customers by 6.1%, to UAH 77.13 billion.
Ukreximbank’s net worth for 2019 rose by 5.5%, to UAH 8.90 billion.
The charter capital of the bank remained at the level of UAH 38.73 billion.
