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.
The net profit of state-owned PrivatBank (Kiev) in 2022 was 30.25 billion UAH, down 13.7% from 2021 (35.05 billion UAH), the bank’s press service said Thursday.
“PrivatBank ended 2022 with a net profit of 30.25 billion UAH amid martial law in Ukraine, prolonged uncertainty and the need to support its own employees customers and small and medium businesses. This is preliminary data on the confirmation of the bank’s annual and financial statements by an external auditor”, – reads the statement.
According to the press-service, since the beginning of the year PrivatBank increased the number of active clients by 150 thousand – up to 19,1 million individuals and legal entities, and the number of active Privat24 clients – by 1,3 million, up to 13,1 million clients.
In addition the volume of payments by cards in POS-terminals of the bank increased by 551 billion UAH or 17%, deposits and funds of population increased by 107.7 billion UAH (or 48%).
Business funds for the year increased by 35.6 billion UAH or 37%, loan portfolio of legal entities (net) – by 58%.
For the year there were given 23,8 billion UAH of loans to small and medium businesses.
Every day 1 thousand branches, 5 thousand ATMs, 10 thousand terminals and 180 thousand commercial terminals work in PrivatBank network.
State-owned PrivatBank (Kyiv) raised limit on cash withdrawal at ATMs of its network for foreign cards and cards of other banks up to UAH 20 thousand per a transaction once in three hours since November 23, press-service of financial institution informed on Thursday.
“The increase in card cash-out limits for all Ukrainian and foreign banks will allow clients of all banks to access cash when necessary,” said PrivatBank board member for retail business Dmitry Musienko, quoted by the press service.
He added that at the moment there are more than 5 thousand ATMs in the network of PrivatBank in all regions of Ukraine.
The press service of the bank specified to Interfax-Ukraine news agency that previously the limit on withdrawal at PrivatBank ATMs of foreign and foreign cards was 10 thousand UAH.
ATMs, CASH, LIMIT, PRIVATBANK
