The net profit of solvent banks in January-November 2023 reached UAH 130.55 billion, while in the same period of 2022 this figure was 6.7 times lower and amounted to only UAH 19.43 billion, according to the National Bank of Ukraine (NBU).
According to the data, in November, net profit decreased to UAH 7.85 billion from UAH 12.85 billion in October, and was lower this year only in January, while banks also finished November last year with the best result of UAH 8.45 billion.
The decline in profits compared to previous months is explained, in particular, by an increase in provisioning last month to UAH 3.75 billion, which is a record high for this year, while in the previous two months, provisions were even dissolved in the amount of up to UAH 1 billion.
According to the NBU, total revenues of financial institutions over 11 months increased by 25.7% year-on-year, with net interest income increasing by 34.5% to UAH 182.22 billion, while net fee and commission income increased by 2.5% to UAH 45.6 billion.
In the first 10 months of the year, the growth rate was higher: total income increased by 27.3%, net interest income increased by 36.5% to UAH 164.24 billion, and net fee and commission income increased by 3.8% to UAH 41.4 billion.
This is due to the fact that in November of this year, compared to November last year, the growth of total bank revenues slowed to 12.3%, or UAH 39.47 billion, including net interest income, which increased by 18.3% to UAH 17.98 billion, while net fee and commission income even decreased by 8.6% to UAH 4.23 billion.
The share of interest income in the total structure of banks in November remained at the level of October – 68.1%, while in November last year it was at the level of 60.2%.
The share of fees and commissions remained unchanged at 21.7% last month, while a year ago it was higher at 23.7%.
The share of proceeds from foreign exchange transactions increased by 0.1 percentage points in November to 7.1%, while in the same period last year it reached 13.1%.
It is noted that banks paid UAH 26.17 billion in income tax for 11 months of this year, including UAH 4.13 billion in November.
As reported, the Rada has increased the corporate income tax on banks from 18% to 50% in 2023 and to 25% in subsequent years.
JSC Slovianski Shpalery-KFTB (formerly the Koriukiv technical paper factory, Chernihiv region), a leading Ukrainian wallpaper manufacturer, completed January-September 2023 with a net profit of UAH 37.44 million, which is 4.3 times more than for the same period in 2022. According to the company’s financial statements released on Friday in the information disclosure system of the National Commission for Securities and Stock Market, net income increased by 55.3%m to UAH 1 billion.
The company received UAH 49.48 million in profit from operating activities (4 times more), gross profit increased by 61.5%, to UAH 201.66 million.
According to the plant’s report for the first half of 2023 published on Friday, a net profit amounted to UAH 19.18 million versus a loss of UAH 3.61 million for the same period in 2022, with net income growing by 69.3% to UAH 616 million.
Thus, in the third quarter the company increased net profit by 51.3%, to UAH 18.26 million, net income by 37.7%, to UAH 398.41 million.
As reported with reference to data from the Ukrpapir association, in January-September of this year the factory increased wallpaper production by 23%, to 12.387 million conventional pieces.
“Ukrzaliznytsia (UZ) plans to make a net profit of UAH 7 billion in 2023 after a net loss of UAH 9.6 billion in 2022, acting CEO Yevhen Lyashchenko said at the final meeting of the Ministry of Community Development, Territories and Infrastructure’s team with diplomatic missions and the public in Kyiv on Tuesday.
According to him, in 2023, UZ will receive a record revenue of UAH 99.6 billion over the past five years, UAH 82.1 billion of which will be accounted for by freight transportation, UAH 8.4 billion by passenger transportation, and UAH 9.1 billion by other revenues.
According to the data provided by him, in 2022, UZ’s revenues fell to UAH 75.7 billion from UAH 86 billion in 2021 and UAH 90.4 billion in 2019.
In particular, revenues from freight transportation last year decreased to UAH 63 billion from UAH 72.3 billion a year earlier, passenger transportation – to UAH 5.9 billion from UAH 6.2 billion, and other revenues – to UAH 6.8 billion from UAH 7.5 billion.
Lyashchenko noted that the implementation of measures to optimize operations helped UZ to reach profit in 2023, and 70% of operational purchases by value are already made under direct contracts with manufacturers.
According to the CEO, in particular, since March 2023, UZ has saved more than UAH 1 billion on diesel fuel purchases by adjusting fuel standards and procurement practices.
Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, earned $29.08 million in net profit in 9M2023, up 12.2 times year-on-year (y-o-y).
According to the group’s report on the Warsaw Stock Exchange, its revenue for the first nine months increased by 36.3% to $123.06 million, mainly due to higher prices for its products.
Gross profit for January-September this year increased by almost 2.8 times to $42.64 million, operating profit – by 8.2 times to $29.65 million.
It is noted that such an increase in profitability was also achieved by reducing the cost of sales from $66.16 million to $57.40 million due to good feed prices and the devaluation of the hryvnia.
The stability of national currencies also led to Ovostar’s total profit of $29.08 million in the first 9 months of this year, compared to a total loss of $25.16 million in the same period last year, when the hryvnia exchange rate fell.
The group also reported that its debt on bank loans since the beginning of the year has decreased from $10.93 million to $2.46 million, and is currently represented by a UAH 90 million loan from Credit Agricole Bank under the state program at a rate of 13.05% per annum with maturity at the end of March 2024, while the company has fully repaid its obligations to Ukrsibbank and OTP Bank.
Ovostar’s free cash flow jumped to $58.44 million from $12.17 million at the beginning of the year and $5.92 million a year earlier, including the equivalent of $19.77 million in hryvnia from $0.90 million, and $33.89 million in Latvia from $4.76 million.
According to the report, the share of egg sales in revenue slightly decreased to 69.0% from 69.5% in 9M2017, while the share of egg products increased from 30.5% to 31%. At the same time, the share of egg exports in total revenue increased from 34.9% to 45.5%, and the share of egg products exports increased from 56.6% to 60.3%.
As a result, Ovostar’s total export revenue for January-September this year reached 50% of total revenue, compared to 41.5% a year earlier.
The company, which had previously announced the suspension of its investment program amid the ongoing Russian military invasion of Ukraine and the overall unfavorable situation in the national economy, invested $8.88 million in 9M2017 against $5.42 million in 9M2016, with the lion’s share of all investments again in biological assets.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., conducted an IPO of 25% of its shares on the WSE and raised $33.2 million. The majority stake of 67.93% is owned by Prime One Capital Limited, which is controlled by its CEO Boris Belikov and Chairman of the Board of Directors Vitaliy Veresenko.
In January-September of this year, Fairfax Financial Holdings Limited significantly increased its stake in Ovostar from 9.09% to 27.51% by withdrawing from the shareholders’ list Generali Otwarty Fundusz Emerytalny (10.93%) and AVIVA Otwarty Fundusz Emerytalny (5.02%).
As reported, Ovostar earned $6.09 million in net profit in 2022, which is 3.7 times more than in 2021. At the same time, revenue increased by 1.7% to $135.63 mln.
In the first half of 2023, the company earned $20.63 million in net profit, while the same period in 2022 ended with a net loss of $19.78 million. Its revenue for the six months increased by 56.8% to $88.69 million.
PJSC Interpipe Dnipropetrovs’k Vtormet (Dnipro), a member of Interpipe Pipe and Wheel Company (TKK), posted a consolidated net profit of UAH 43.841 million in January-September this year, compared to a consolidated net loss of UAH 58.818 million in the same period last year.
According to the company’s interim report, its net income for the period increased by 28.3% to UAH 3 billion 211.957 million.
Retained earnings as of the end of September 2023 amounted to UAH 192.715 million.
At the same time, Interpipe Dnipropetrovs’k Vtormet earned a non-consolidated net profit of UAH 44.657 million in 9M2023, while it ended the same period last year with a net loss of UAH 54.081 million. The net income for the period corresponds to the same figure in the consolidated financial statements.
As reported, Interpipe Dnipropetrovs’k Vtormet posted a consolidated net profit of UAH 25.460 million in the first half of the year, while it ended the same period last year with a consolidated net loss of UAH 38.239 million. Net income for the period increased by 38.6% to UAH 2 billion 155.760 million.
In January-June of this year, the company posted a non-consolidated net profit of UAH 25.637 million, while it ended the same period last year with a net loss of UAH 35.344 million. “In the first quarter of 2023, Interpipe Dnipropetrovs’k Vtormet earned UAH 15.480 million in profit, while it ended the same period last year with a net loss of UAH 16.57 million. Net income for the period increased by 32.5% to UAH 1 billion 111.279 million.
“Interpipe Dnipropetrovs’k Vtormet ended 2022 with a net loss of UAH 10.284 million, compared to UAH 14.234 million in net profit in 2021. At the same time, net income decreased by 51.8% to UAH 3 billion 276.74 million.
“Interpipe Dnipropetrovs’k Vtormet specializes in the procurement and processing of ferrous scrap in the Dnipro region and the subsequent sale of this product, including the preparation of metal charge for steelmaking plants.
As of the first quarter of 2023, Interpipe Limited (Cyprus) owns 98.6699% of the shares in Interpipe Dnipropetrovs’k Vtormet.
The company’s authorized capital is UAH 64.876 million.
The net profit of solvent banks in January-October 2023 reached UAH 122.7 billion, while in the same period of 2022 this figure was only UAH 10.9 billion, according to the National Bank of Ukraine (NBU).
According to the NBU, total revenues of financial institutions over 10 months increased by 27.3% compared to the same period last year, in particular, net interest income increased by 36.5% to UAH 164.24 billion, while net commission income increased by 3.8% to UAH 41.4 billion.
In the first 9 months of the year, the growth rate was higher: total income grew by 28.1%, including net interest income by 38.7%, and net fees and commissions by 5.4%, as in October this year, net interest income increased by 20.6% compared to October last year, while net fees and commissions decreased by 7.4%.
The share of interest income in the overall structure of banks continued to grow and added 0.2 pp (percentage points) in October, reaching 68.1%, while in the same period last year it was at 60.1%.
Meanwhile, the share of fees and commissions decreased to 21.7% from 23.7% in 2022, as did income from foreign exchange operations due to the stability of the hryvnia exchange rate – to 7% from 13.3%.
Another factor contributing to the profit growth was a significant reduction in provisioning by 21.8 times to UAH 4.9 billion.
According to the NBU, in October, banks’ net profit decreased to UAH 12.8 billion from UAH 14.8 billion in September, while remaining higher than in August – UAH 11.9 billion. Last October, banks ended with a profit of UAH 3.6 billion.
