The net profit of state-owned PrivatBank (Kyiv) in January-September 2023 amounted to UAH 43.37 billion, which is 3 times higher than the same period in 2022, according to the bank’s unconsolidated report for the third quarter.
According to the report, the state-owned bank’s net profit for the third quarter amounted to UAH 13.62 billion, which is UAH 0.082 billion less than in the second quarter, and at the same time UAH 6.08 billion more than in the same period last year.
According to the report, PrivatBank’s net interest income increased by 64.5% year-on-year to UAH 43.18 billion in January-September 2023, including a 40.7% increase to UAH 15.32 billion in the third quarter, which is UAH 1.2 billion less than in the second quarter of this year.
Net fee and commission income for the first nine months of this year increased by 25% to UAH 17.45 billion compared to the results of 2022. However, in the third quarter, this figure was 1.5% lower than in April-June this year, but 1.3% higher than in the third quarter of 2022 – UAH 5.81 billion.
A significant contribution to the improvement of the bank’s financial result was made by a decrease in the loss from impairment for the first nine months of this year to UAH 0.072 billion, while in the same period last year this figure was UAH 17.34 billion. According to the report, in July-September, the bank even made a profit of UAH 0.697 billion under this item, compared to UAH 0.051 billion in the previous quarter and UAH 9.73 billion in the third quarter of last year.
PrivatBank also reports that its total profit for January-September this year reached UAH 49.52 billion, 3.5 times higher than in the comparable period of 2022. However, in the third quarter of 2023, the total profit decreased by 42% compared to the second quarter and amounted to UAH 13.63 billion, exceeding the total profit for the third quarter of 2022 by 43%.
According to the report, in 9M2023, the bank’s assets increased by 12%, reaching UAH 605.26 billion as of September 30.
This growth is explained by the increase in the amount of funds with the NBU from UAH 11.46 billion to UAH 59.32 billion, funds on correspondent accounts and overnight deposits with banks: in Ukraine, they amounted to UAH 2 million for this period (data for 2022 are not available), in the countries of the Organization for Economic Cooperation and Development (OECD) – from UAH 58.1 billion in 2022 to UAH 75.22 billion as of September 30, 2023.
As for loans and advances to customers, they grew by 32% to UAH 89.82 billion in January-September this year. On the contrary, loans and advances to banks decreased by 10.7% to UAH 93.81 billion since December 2022, including UAH 93.14 billion in NBU certificates of deposit (CDs) and UAH 0.67 billion in escrow with the NBU. At the same time, UAH 55.5 billion of these are CDs at 16%, UAH 26.3 billion are CDs at 22%, and UAH 10 billion are CDs at 25%.
The loan portfolio of legal entities grew by 15.8%, including repurchase agreements to UAH 2.87 billion (no data for 2022). The largest increase in the retail portfolio was recorded in credit card loans (+16.8%), consumer loans (+94.5%), and car loans (up 2 times).
Finance lease loans and receivables increased from UAH 167.93 billion to UAH 169.35 billion. Overall, financial leasing receivables decreased significantly in all segments, both for individuals and legal entities, as well as for small and medium-sized businesses and enterprises.
At the same time, investments in securities decreased slightly for the first time this year, from UAH 239.75 billion to UAH 239.18 billion.
In the first nine months of 2023, PrivatBank’s customer accounts increased from UAH 471.97 billion to UAH 509.94 billion, and equity increased from UAH 57.79 billion to UAH 83.11 billion.
The provision for expected credit losses increased from UAH 174.35 billion in 2022 to UAH 182.41 billion in September this year.
According to the National Bank of Ukraine, as of September 1, 2013, PrivatBank is the leader in total assets (UAH 642.3 billion) among 64 operating banks in the country and ranks third in terms of the number of branches – 1131.
Net profit of state-owned PrivatBank (Kyiv) for January-June 2023 amounted to UAH 29.75 billion, which is 4.7 times higher than in the same period of 2022, according to the unconsolidated semi-annual report of the bank.
According to it, in particular, in the second quarter of this year net profit reached UAH 13.7 billion, which is 5.3 times higher than the net profit for the second quarter of last year.
It is indicated that the net interest income of PrivatBank for the first half of the year increased by 81.4% to UAH 27.86 billion, including in the second quarter the growth amounted to 74.2% to UAH 14.09 billion.
Meanwhile, net fee and commission income in January-June this year increased by 41.3% to UAH 11.64 billion, including in the second quarter – by 43.65% to UAH 5.94 billion.
A significant contribution to the improvement of the bank’s financial result was made by a decrease in the loss from utility reduction in the first half of this year to UAH 769 million, while for the same period last year this indicator amounted to UAH 7.54 billion. According to the report, in the second quarter of this year, this item even generated UAH 51 million in profit against a loss of UAH 5.67 billion in the second quarter of last year.
PrivatBank also reports that its total profit for the first half of this year reached UAH 35.89 billion, which is 7.4 times higher than the figure for January-June last year, including a total profit of UAH 19.325 billion in the second quarter-2023 against UAH 4.85 billion in the same period of 2022.
According to the report, the bank’s assets grew by 5% in the first half of 2023, reaching UAH 568.84 billion by June 30.
This growth is explained by an increase in cash and funds with the NBU from UAH 96.4 billion to UAH 148.23 billion and loans and advances to customers from UAH 68.08 billion to UAH 76.53 billion, while investments in securities increased marginally from UAH 239.75 billion to UAH 240.64 billion, and debts of other banks decreased by 24.6% to UAH 78.3 billion.
PrivatBank’s customer funds increased from UAH 471.97 billion to UAH 488.06 billion in the first six months of 2023, while capital increased from UAH 57.79 billion to UAH 69.52 billion.
According to the National Bank of Ukraine as of June 1, 2023, PrivatBank is the leader in terms of total assets (UAH 742.433 billion) among 65 operating banks in the country.
According to the NBU, Privat closed 79 branches in the second quarter, reducing its network to 1,131 units across Ukraine, although its report said it had eight branches and 1,199 operating outlets at mid-year, just one less than at the beginning of the year.
Net profit of the state-owned PrivatBank (Kyiv) for January-June 2023 amounted to UAH 29.75 billion, which is 4.7 times higher than in the same period of 2022, according to the unconsolidated semi-annual report of the bank.
According to it, in particular, in the second quarter of this year net profit reached UAH 13.7 billion, which is 5.3 times higher than the net profit for the second quarter of last year.
It is indicated that the net interest income of PrivatBank for the first half of the year increased by 81.4% to UAH 27.86 billion, including in the second quarter the growth amounted to 74.2% to UAH 14.09 billion.
Meanwhile, net fee and commission income in January-June this year increased by 41.3% to UAH 11.64 billion, including in the second quarter – by 43.65% to UAH 5.94 billion.
A significant contribution to the improvement of the bank’s financial result was made by a decrease in the loss from utility reduction in the first half of this year to UAH 769 million, while for the same period last year this indicator amounted to UAH 7.54 billion. According to the report, in the second quarter of this year, this item even generated UAH 51 million in profit against a loss of UAH 5.67 billion in the second quarter of last year.
PrivatBank also reports that its total profit for the first half of this year reached UAH 35.89 billion, which is 7.4 times higher than the figure for January-June last year, including a total profit of UAH 19.325 billion in the second quarter-2023 against UAH 4.85 billion in the same period of 2022.
According to the report, the bank’s assets grew by 5% in the first half of 2023, reaching UAH 568.84 billion by June 30.
This growth is explained by an increase in cash and funds with the NBU from UAH 96.4 billion to UAH 148.23 billion and loans and advances to customers from UAH 68.08 billion to UAH 76.53 billion, while investments in securities increased marginally from UAH 239.75 billion to UAH 240.64 billion, and debts of other banks decreased by 24.6% to UAH 78.3 billion.
PrivatBank’s customer funds increased from UAH 471.97 billion to UAH 488.06 billion in the first six months of 2023, while capital increased from UAH 57.79 billion to UAH 69.52 billion.
According to the National Bank of Ukraine as of June 1, 2023, PrivatBank is the leader in terms of total assets (UAH 742.433 billion) among 65 operating banks in the country.
According to the NBU, Privat closed 79 branches in the second quarter, reducing its network to 1,131 units across Ukraine, although its report said it had eight branches and 1,199 operating outlets at mid-year, just one less than at the beginning of the year.
PrivatBank, the largest on the market, confirmed disruptions and delays in the work of the bank’s services, in particular Privat24, ATM networks and card payments through merchant terminals.
“All IT specialists involved are working to restore stable work as soon as possible,” the financial institution said in a telegram message.
The bank thanked customers for their understanding and patience.
As stated by the National Bank in a report for 2022, the leaders in Ukraine on the issue of payment cards are state-owned PrivatBank and Oschadbank – respectively 43.8% and 15.4%, as well as Universal Bank (mono) – 13.2%.
The largest number of payment terminals on the market also belongs to PrivatBank – 60.4%, Oschadbank – 19.6% and Raiffeisen Bank – 7.6%.
At the end of 2022 assets of state-owned PrivatBank (Kyiv) reached UAH 549.7 billion, which is 35% more than at the end of 2021 (UAH 407.3 billion).
As Anna Samarina, the deputy chairman of the bank management board, said at the press conference “We take and report: the largest bank in the year of the most difficult challenges” on Friday, such growth is due to increase of liquid assets by 110.3 billion UAH, growth of additional investments in government bonds by 17.3 billion UAH and growth of the business customer loan portfolio by 10.1 billion UAH.
At the same time, in 2022 the portfolio of loans to individuals decreased by 900 million UAH.
According to Samarina, customer accounts at the end of 2022 amounted to UAH 472 billion (in equivalent), which is 1.5 times higher than at the end of 2021 (325.3 billion UAH).
The growth was due to the receipt of 117.6 billion UAH in customer accounts and the impact of changes in the exchange rate (29.1 billion UAH).
“We kept our expenses almost at the level of 2021. The growth was 5%. We did not cut costs, we did not cut staff. We have been very attentive to the expenses we have incurred,” noted the deputy head of PrivatBank.
She added that in the first months of the war there were big discounts from many suppliers, which also helped the bank, but it had no significant effect on the expenses.
The bank’s provisions for credit risks increased 17.1-fold to UAH 15.4 billion.
State-owned PrivatBank, the largest in the market, will pay dividends to the state budget in 2022 in the amount of 24 billion 158.37 million UAH, or 80% of net profit.
According to the report of the Ministry of Finance, the distribution of profits was approved by the Cabinet of Ministers at the meeting on April 28.
Net profit of PrivatBank for 2022 was UAH 30.198 billion, a decrease of 13.7% compared with 2021, in which the bank paid to the state budget UAH 28 billion in dividends, which also amounted to 80% of net profit.
