State-owned PrivatBank (Kyiv) plans to receive UAH 17.5 billion in net profit in 2020, which is 47.4% less than in 2019 (UAH 32.6 billion), the financial institution said in its annual statements on the website on Thursday, May 21.
“The management monitors the current situation with the spread of coronavirus [COVID-19] and lockdown and takes measures, if necessary, to minimize any negative consequences as far as possible. Further negative developments and macroeconomic conditions can affect the financial situation and performance of the bank in such a way, which cannot be determined yet,” the bank said in the document.
The bank said in the financial statements that the objectives of PrivatBank for 2021 are the following: to achieve profitability indicator in accordance with its business strategy and to maintain a leading position in the Ukrainian banking market.
However, the bank’s analysts expect that the spread of COVID-19 pandemic, which began in 2020, will lead to a recession in the global economy and a significant slowdown in economic activity in the country.
They believe that the introduction of lockdown restrictions by the government in March, combined with a significant reduction in global demand and an overestimation of the risks of developing countries by investors, may affect the performance of Ukraine’s economy and foreign trade, as well as complicate fundraising, affect the country’s banking system and lead to further devaluation of the national currency.
