The profit of Ukrainian banks in April-September 2020 fell by 22.2%, to UAH 37.6 billion compared to the same period a year earlier (year-over-year), at the same time, the National Bank of Ukraine (NBU) expects that till the end of 2020 the banking system of Ukraine will be profitable.
According to an overview of the banking sector on the NBU website, the banking sector continues to overcome the consequences of the COVID-19 pandemic, in the third quarter of 2020 the main indicators of banks resumed growth. At the same time, losses from the deterioration of the loan portfolio quality remain the main challenge for the profitable activities of banks.
According to the NBU report, during the third quarter, the rate on 12-month deposits in hryvnias decreased by only 0.9 percentage points, to 8.7% per annum. It is noted that, although the NBU refinancing rate remains unchanged, a further decrease in loan rates is expected, since the potential for their reduction has not yet been exhausted.
According to the National Bank, the spread between three-month and 12-month deposits in hryvnias increased slightly from 0.2 percentage points to 0.5 percentage points, but this did not create incentives for the continuation of the maturity of deposits, and corporate hryvnia funds fell by 1.4 percentage points, to 3.8% per annum.
According to the report, the average interest loan rates to economic entities in hryvnias decreased by 1.0 percentage points, to 9.6% per annum in July-September, and for loans to individuals by 1.9 percentage points, to 30.9% per annum.
It is indicated that the net assets of Ukrainian banks in the third quarter increased by 7.6% to UAH 1.71 trillion, the share of government domestic loan bonds in assets by 4.8 percentage points, and NBU deposit certificates by 17%.
