Business news from Ukraine

NET ASSETS OF UKRAINIAN BANKS UP IN Q3

The net assets of Ukrainian banks in July-September 2021 increased by 2.1% – to UAH 1.932 trillion, due to the revival of lending to corporations and individuals, according to data released on the website of the National Bank of Ukraine (NBU).
According to its data, in July-September, the assets of banks with foreign capital grew by 6.3% – to UAH 604 billion, private banks – by 11%, to UAH 411 billion, PrivatBank – by 1%, to UAH 375 billion, while as the assets of state banks decreased by 7%, to UAH 543 billion.
“The growth of bank assets in the third quarter was provided mainly by lending. Net hryvnia loans to businesses and the population in annual terms grew by more than 40% and 30%, respectively, mortgage loans “accelerated” to almost 55% year-on-year. This indicates the ongoing post-crisis growth of “credit appetites” on the part of both supply and demand,” NBU Governor Kyrylo Shevchenko said on Facebook.
He noted that the share of non-performing loans in the third quarter decreased by 3.9 percentage points, to 33.3% due to the largest write-off of non-performing assets this year and accelerated lending.
According to the survey, in July-September, the volume of household deposits in hryvnias decreased by 1.4%, mainly due to funds on demand as a result of a seasonal increase in consumer spending. At the same time, in annual terms, the volume of hryvnia funds of individuals increased by 15%.
It is indicated that funds of business clients in the national currency increased by 6.9% in the quarter and by 28.1% year-over-year.
According to the NBU, the factors of profitability are the continued growth of operating efficiency and a significant reduction in provisions to reserves.

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