State-owned PrivatBank again topped the list of the most profitable banks in June 2023 with a net profit of UAH 4 billion 607.1 million, but this time the state-owned Oschadbank, which is second in terms of assets, also showed a commensurate profit – UAH 4 billion 269.9 million.
According to the data released by the National Bank of Ukraine on its website, the top five banks with the highest net profit in June also included Sense Bank, nationalized in late July, with UAH 745.5 million, FUIB with UAH 690.2 million and Ukrsibbank with UAH 671.6 million.
The second five were formed by Citibank – UAH 485.3 million, Ukreximbank – UAH 439.7 million, Ukrgasbank – UAH 411.1 million, Credit Agricole Bank – UAH 393.6 million and OTP Bank – UAH 285.4 million.
Profit over UAH 200 mln was obtained by three more banks: Universal Bank (mono) – UAH 256.7 mln, ING Bank Ukraine – UAH 229.3 mln and Credobank – UAH 219.0 mln.
Among these 13 banks, the largest reserves in May were discharged by FUIB – UAH 1 billion 209.2 million, Privat – UAH 402.9 million, Sens – UAH 303.6 million and Oschadbank – UAH 222.4 million.
Oschad’s success in June was due to a sharp improvement in its trading result: it amounted to UAH 236.9m in the half-year period, while the loss on this item reached UAH 3.3bn at the end of the month.
The list of 17 loss-making banks in June (there were nine such banks in May) was headed by Raiffeisen Bank – UAH 142.9 mln, which added UAH 1 bln 142.3 mln to its reserves. It is followed by Globus – UAH 55.7 mln, Sky Bank – UAH 46.9 mln and Pravex Bank – UAH 36.6 mln.
Overall, in June 2023, banks’ net profit rose to UAH 14.06 billion from UAH 9.59 billion in May and UAH 9.94 billion in April. Excluding Privat and Oschad, net profit of banks in June UAH 5.18 billion against UAH 4.83 billion in May.
While in May the growth of total assets of all banks slowed down to UAH 2.23 billion from UAH 61.53 billion in April, in June it accelerated again to UAH 65.57 billion due to the growth of Privat by UAH 19.51 billion, Oshchad by UAH 11, 09 billion UAH, Ukrsibb – by 5.99 billion UAH, FUIB – by 5.7 billion UAH, Ukrexim – by 5.07 billion UAH, Pivdennyi – by 4.58 billion UAH, Credit Agricole Bank – by 4.17 billion UAH and Raif – by 3.23 billion UAH.
However, the leaders in terms of relative increase in assets in June were SEB Corporate Bank – by UAH 1.28 billion, to UAH 6.64 billion and Ukrbudinvestbank – by UAH 0.5 billion, to UAH 2.47 billion/
The most significant relative decrease in assets in June was demonstrated by Alliance Bank – by UAH 1.41 billion, to UAH 12.42 billion, Deutsche Bank DBU – by UAH 0.77 billion, to UAH 5.11 billion and Bank 3/4 – by UAH 0.21 billion, to UAH 1.52 billion.
In general, following the results of the first half of 2023, PrivatBank remains the most profitable bank by a wide margin – UAH 29.75 billion, or 44.0% of the total net profit of the country’s banking system for this period.
June results allowed Oschad to take the second place with UAH 6.84 billion, while Raif dropped to the fifth place with UAH 3.12 billion, having also missed FUIB with UAH 3.68 billion and Ukrsib with UAH 3.56 billion.
In the second five are OTP Bank – UAH 2.85 billion, City – UAH 2.76 billion, Ukrgas – UAH 2.60 billion, Sense – UAH 2.14 billion and Ukrexim – UAH 1.98 billion.
In January-June 2023, PrJSC “Insurance Company “Nadiina” (Kyiv) collected insurance premiums in the amount of UAH 66.943 million, which is 10.14% more than in the same period a year earlier, according to the information of RA “Standard Rating” on updating the company’s credit rating/financial strength (reliability) rating at uaA+ according to the national scale.
At the same time, premiums from individuals amounted to UAH 267 thousand, and premiums from reinsurers – UAH 2 thousand. Thus, according to the results of the first half of 2023, the insurer’s client portfolio in terms of gross premiums was mainly formed by legal entities.
Insurance payments sent to reinsurers in the first half of 2023 decreased by 34.69% to UAH 34.178 million compared to the same period in 2022. Thus, the ratio of reinsurers’ participation in insurance premiums decreased from 86.09% to 51.06%, or by 35.03 p.p.
The insurer’s net written premiums increased 3.88 times to UAH 32.765 million, and earned premiums increased 4.69 times to UAH 33.326 million.
The volume of insurance payments and reimbursements made by the company in the first half of 2023 compared to the same period in 2022 increased 9.97 times to UAH 3.996 million. Thus, the level of payments increased by 5.31 p.p. to 5.97%.
The company’s profit from operating activities for the reporting period increased to UAH 21.904 million, and the insurer’s net profit increased to UAH 20.411 million.
As of July 1, 2023, the company’s assets increased by 30.75% to UAH 79.488 million, equity showed an increase of 41.58% to UAH 69.497 million, liabilities decreased by 14.65% to UAH 9.991 million, cash and cash equivalents increased 2.78 times to UAH 37.195 million.
As reported, the company was registered in the Unified State Register of Legal Entities and Individual Entrepreneurs in 2006. The authorized capital is UAH 15 million.
According to the NSSMC, as of Q4 2022, the company’s shareholders were 8 individuals with 9.5%, one with 5%, and another with 19%.
Ukraine lacks a system of providing palliative care to elderly patients with diabetes, says Nataliya Kozhan, executive director of the Ukrainian Diabetes Federation.
“In our country, unfortunately, at present, practically no attention is paid to the provision of palliative care for this category of patients. I very often encounter such patients, working at the Department of Palliative and Hospice Medicine at the Shupyk University. Shupyk, and I hear from patients that medical workers and doctors, even with a severe course of diabetes and with a high level of pain, do not offer measures of palliative care,” she said during a round table in Kiev.
At the same time, Kozhan emphasized that “unfortunately, to date, there are no recommendations from the WHO on the provision of such care.”
“We do not have clinical protocols for providing this care, but it should be dealt with,” she said.
Chanta Mount LLC (Novi Petrivtsi, Vyshgorod district, Kyiv region) has received UAH 8 million in non-refundable grant aid from the state for the New Level processing plant, which will help it resume production of frozen bread, the press service of the Ministry of Economy of Ukraine reports.
According to the report, in March 2022, the bakery was damaged by shelling by the Russian occupiers. The bread production line was almost completely destroyed, and the croissant production line was partially destroyed: six shells hit the premises. The damage was estimated at more than EUR 5 million. Before the war, the plant employed 140 people, now it has about 40.
“The bread production line was destroyed by Russian troops with Grad rockets on March 16, 2022. The epicenter of the explosion was in the part where we freeze and pack bread. (…) Only because there was a curfew, our people were not injured. We immediately realized that we could not cope with the recovery alone, so we needed to look for grant opportunities,” the press service quoted the bakery’s director, Elena Taranenko, as saying.
The company’s management has applied for participation in the government’s program of non-refundable grants for processing enterprises from the Ministry of Economy and will receive the maximum amount of UAH 8 million.
“We have to make our contribution of UAH 4 million. The grant money will be used to buy freezing and refrigeration equipment,” said Taranenko.
In addition, to launch the bread production line, it is necessary to equip the packaging department and build a warehouse for finished products. This will require EUR 2 million.
In the spring of 2024, the bakery plans to resume full production and supply frozen bread to ATB, Silpo, Fora, Novus, METRO, Auchan, Epicenter, and Varus supermarkets.
Meanwhile, the croissant production line is reportedly already in operation. The frozen croissants are sold to national retail chains, bakeries, cafes, supermarkets, and for export. So far, up to 1.5-2 tons are baked daily, but the potential capacity is over 400 kg/hour.
The Ministry of Economy reminded that the government’s e-Work project includes grant programs aimed at stimulating entrepreneurship and job creation. Microgrants are issued for starting or developing your own business, including processing enterprises, planting a garden, vineyard, or greenhouse. Both existing entrepreneurs and people with no business experience can apply for a grant.
In 2022, Chanta Mount LLC received UAH 26.441 million in revenue, while a year earlier it received UAH 181.4 million, and the loss increased to UAH 94.409 million from UAH 3.1 million in 2021.
According to Opendatabot, Chanta Mount LLC was registered in 2018, and the ultimate beneficiary is Olena Chernysheva. The company’s authorized capital is UAH 23.7 million.
Ukraine has reduced the rate of rapeseed exports by 1.8 times – to 220,000 tons per month against the norm of 350,000-400,000 tons, according to the analytical cooperative “Pusk”, established within the framework of the All-Ukrainian Agrarian Rada (VAR).
“We have a decrease in the export rate for rapeseed. Ukraine needs to export 350,000-400,000 tons monthly, but exports exceed 220,000 tons. For September, Ukrainian rapeseed is contracted on forwards with delivery to Romania, Lithuania, Germany exclusively by road and rail. At small river ports forwards are not arranged, only spot market works there. Rapeseed supply is low”, – analysts note.
According to their data, processors gradually pull up the level of purchase prices to 14 thousand UAH/ton, in some regions price tags are 14.2 thousand UAH/ton. Large batches – 2-3 thousand tons of rapeseed – are exported to the EU, which forces domestic processors to raise prices.
One of the factors of price growth on rapeseed, according to analysts, is the news from Canada – the key world producer of canola, about the decrease in the volume of gross harvest.
“According to the USDA report, there was a decrease in the forecast of rapeseed harvest from Canada by 1 million tons. But we can expect further declines in the forecast due to weather conditions. The volume of oilseed production in Canada will determine further price trends in the global market,” the WAR explained.
In the coming week, the conditional prices at small river ports may rise to $380-390/tonne, purchase prices of processors – up to UAH 14.4 thousand/tonne, experts predict.
US inflation is slowing but still remains too high, Federal Reserve Bank of Minneapolis (FRB) Governor Neel Kashkari said.
“The question that concerns me is whether we have done enough to bring inflation back to the Federal Reserve’s 2% target or whether we need to do more,” Kashkari said during an event on Tuesday.
“Inflation is slowing. We’ve made progress and good progress. I’m happy with that. But it’s still too high,” Market Watch quoted Kashkari as saying.
The pace of U.S. consumer price growth accelerated to an annualized rate of 3.2% in July, up from 3% in June.
The head of the Minneapolis FRB has a vote on the Federal Open Market Committee (FOMC) this year.
The Fed raised the benchmark interest rate by 25 basis points to 5.25-5.5% in July, a 22-year high. Judging by the quotations of futures on the rate level, traders expect it to remain at the same level following the results of the September FOMC meeting.
