In May 2023, Ukrainian banks issued 232 mortgage loans totaling UAH 322.5 million, while in April – 41 for UAH 50.1 million, according to the results of a monthly survey by the National Bank of Ukraine (NBU).
According to the regulator, this growth was due to the resumption of preferential lending under the eHouse program.
This also led to a decline in the weighted average effective interest rate on mortgage loans in May to 8.05% per annum from 14.6% in April.
At the same time, loans are mostly issued for purchases on the secondary real estate market: in May, one loan for UAH 0.73 million was issued on the primary market, compared to two loans for UAH 1.78 million in April.
The NBU clarified that out of the 26 banks surveyed, only four financial institutions issued mortgage loans in July, as they did a month earlier.
The survey data show that more than half of all loans in May were issued in Kyiv and Kyiv region – 103 agreements for UAH 164.4 million (51% of the total), followed by Poltava region with a large margin – 11 agreements for UAH 12.6 million (3.9% of the total).
10 loans each were issued in Chernihiv (UAH 10.4 million), Rivne (UAH 13.4 million) and Vinnytsia (UAH 15.4 million) regions.
Solvent banks in Ukraine in January-March 2023 received UAH 34 billion in net profit against UAH 152 million loss in the same period of 2022, the National Bank of Ukraine said on Friday.
“The main factors of the sector’s profitability are the growth of income as a result of the gradual resumption of banking activities and relatively insignificant volumes of additional provisioning,” it pointed out on its website.
Only five banks out of 65 in the first quarter were unprofitable with an aggregate loss of UAH 40 million.
According to the NBU, in March, the net profit of banks rose to 12.58 billion UAH from 6.78 billion UAH in February.
It is pointed out that banks for the quarter increased operating income by 48% year-on-year, including net interest income rose by 41% year-on-year, despite a significant increase in interest expenses as a result of higher interest rates on deposits.
Net fee and commission income for the period, according to the NBU, increased by 20% compared to the result of the first quarter of 2022.
In March compared to February, net interest income increased by 40.4% to 38.16 billion UAH, net commission income – by 14.7%, to 23.7 billion UAH, while interest expenses increased only by 17.4% – to 7.93 billion UAH, and commission expenses even decreased by 15.8% – to 3.02 billion UAH.
“Banking volumes are resuming with the gradual resumption of economic activity, including after the shelling of energy infrastructure in late last year – early this year,” the regulator stated.
It added that the banks’ profitability is also boosted by the positive result of currency buying and selling operations, which was 2.3 times higher year-on-year in the first quarter.
Net operating profit before deductions to reserves doubled in 1Q 2023 year-on-year – to UAH 45.9 billion, while the rate of deductions to reserves against losses from asset transactions fell compared with 1Q of the previous year in 5.6 times, in particular in reserves against loans – 10 times.
During the quarter the deductions increased only by UAH 3.81 billion, including UAH 1.29 billion in March, and in total since the beginning of a full-scale invasion of Ukraine by Russia, banks formed reserves for credit losses of UAH 108 billion.
The National Bank states that the return on equity sector on April 1, 2023 amounted to 58% against -0.25% a year ago.
The profit tax accrued for the quarter – UAH 6.72 billion – exceeded the corresponding annual figure for the historically most profitable year 2021, the regulator said.
In February 2023 Ukrainian banks issued 126 mortgage loans totaling UAH 169.8 million, which is five times less than in February 2022 by number of such loans and by 69% – by volume, according to results of a monthly survey of the National Bank of Ukraine (NBU).
According to it, four banks reported on the issuance of mortgages. Loans were mainly issued under state programs to support lending exclusively in the secondary market of real estate.
The weighted average effective rate on mortgages in February was 8.3%, while in January it was 7.5%.
According to the survey, the most loans were granted in Kiev and the region – 51 contracts totaling 77.5 million UAH (46% of the total amount), in Rivne – 10 contracts for 12.5 million UAH (7%) and in Vinnitsa region – seven contracts for 9.8 million UAH (6%).
International rating agency Moody’s Investors Service has changed its outlook for the U.S. banking system to “negative” from “stable,” the agency said in a statement.
The decision follows “a rapidly deteriorating operating environment” following the bankruptcies of Silicon Valley Bank, Signature Bank and Silvergate Bank.
“Although the Treasury Department, the Fed and the Federal Deposit Insurance Corporation have announced that all SVB and Signature Bank depositors will receive full compensation, the rapid and significant decline in depositor and investor confidence underscores the asset-liability management risks among U.S. banks, which are exacerbated by rising interest rates,” the press release said.
State-owned PrivatBank in January 2023 received UAH 6.316 billion in net profit, Oshchadbank – UAH 2.242 billion, which amounted to 57% of all profits earned in January by 60 profitable Ukrainian banks.
According to the data published by the National Bank of Ukraine on its website, the top five leaders are also two banks with foreign capital: Raiffeisen Bank – UAH 715.8 million, Sense Bank (formerly Alfa Bank) – UAH 680.5 million and state Ukreximbank – UAH 623 million.
Three other banks with foreign capital: OTP Bank – 617.6 million UAH, Ukrsibbank – 605.3 million UAH, Citibank – 544.9 million UAH, FUIB – 499.1 million UAH and Universal Bank (mono) – 378.5 million UAH were slightly behind.
As for the most loss-making bank in January, it was Forward Bank, owned by Russian Rustam Tariko, which the National Bank considered insolvent on February 8 – UAH 298.3 mln with an increase of reserves by UAH 291.8 mln.
In January, seven banks worked with losses, although the banks formed almost 4 billion UAH of additional reserves (PrivatBank took the biggest losses – 824.4 million UAH).
After the growth of assets of all banks by 91.6 billion UAH in December 2022, in January they increased only by 18.2 billion UAH, including at Ukreximbank – by 14.1 billion UAH, while PrivatBank even decreased by 5.48 billion UAH.
Due to the increase of the National Bank on January 11, the mandatory reserve requirements and permission to form up to half of them at the expense of government bonds, banks’ investment in government securities in the first month of the year increased by 20.9 billion UAH. The largest increase in portfolios was demonstrated by Oshchadbank (UAH 7.397 billion), Raiffeisen Bank (UAH 3.171 billion), FUIB (UAH 2.279 billion), Ukrgasbank (UAH 2.067 billion), Ukreximbank (UAH 1.688 billion), and Universal Bank (mono) – UAH 1.578 billion.
Ukrainian banks’ profits in January 2023 amounted to 14.694 billion UAH, which is 2.1 times more than during the same month in 2022 (7.145 billion UAH), the press service of the National Bank of Ukraine (NBU) said Wednesday.
The regulator noted that banks’ revenues in January increased by 55% to UAH 38.65 billion, and expenses – by 35%, to UAH 23.956 billion.
At the same time, the fee and commission income rose by 4.6% – to UAH 8.3 billion.
At the same time the result of revaluation and from purchase and sale operations was positive and amounted to UAH 5.9 billion, while in the same period last year it was negative and amounted to UAH 42 million.
At the same time, deductions to the reserves rose by 58%, to 2.488 billion UAH, and the commission expenses increased by 31%, to 3.985 billion UAH,
As reported, the Ukrainian banks in 2022, net profit decreased by 3.1 times – to 24.716 billion UAH compared with 77.376 billion UAH in 2021.
