The net profit of state-owned PrivatBank (Kyiv), the largest Ukrainian bank, amounted to UAH 48.35 billion in January-September 2024, which is 11.5% higher than in the same period of the previous year.
“According to the results of the first nine months of 2024, the bank’s pre-tax profit reached UAH 64.01 billion, and net profit amounted to UAH 48.35 billion (+11.5% yoy),” the bank said in a statement on Thursday.
According to it, since the beginning of this year, the bank’s loan portfolio has increased by 18.4%, exceeding UAH 108.99 billion as of the end of September, while total assets increased by 5.4% to UAH 722.17 billion, and deposits and balances on customer accounts by 4% to UAH 572.04 billion.
It was specified that the number of active private clients decreased from 18.35 million to 18.3 million in the first nine months of this year, of which 13.51 million were Privat24 users, while the number of business clients increased from 875 thousand to 890 thousand.
In addition, in January-September, PrivatBank reduced the number of branches by 22 to 1173, ATMs by 20 to 6860, terminals by 62 to 10411, and the number of its POS terminals amounted to 311.17 thousand at the beginning of October.
Taking into account the previously published data, the bank’s net profit in the third quarter of 2024 amounted to UAH 17.75 billion, which is 30.3% higher than in the third quarter of 2023.
“During the third quarter, the bank maintained the achieved level of business activity, despite the pressure of electricity shortages on households and businesses,” the financial institution said in a press release.
It notes that the high quality of the loan portfolio results in almost zero expenses for the formation of additional provisions to cover credit risks. Operating expenses remain under management control: in the first nine months of 2024, they increased by only 4.8% compared to the same period last year, which is significantly lower than the inflation rate.
It was also clarified that since the beginning of the year, PrivatBank has donated UAH 167.06 million to charity, aimed at helping hospitals and medical institutions, strengthening the country’s defense capabilities, social projects, and helping employees.
The net consolidated profit of Naftogaz Group in January-March 2024 increased by 3.7 times (by UAH 17.839 billion) compared to the same period last year, to UAH 24.414 billion.
According to the consolidated financial statements published on Naftogaz’s website, its sales revenue for the first half of the year increased by 28.1% (by UAH 31.456 billion) to UAH 143.373 billion, gross profit by 4.1 times (by UAH 33.479 billion) to UAH 44.377 billion, and operating profit by 2.1 times (by UAH 14.907 billion) to UAH 28.904 billion.
According to the group’s press service, the improvement in financial results was achieved, in particular, due to an increase in revenues from the sale of gas, oil and petroleum products, as well as natural gas distribution services.
The key companies that showed a profit in the first half of 2024 are Naftogaz of Ukraine, Ukrgasvydobuvannya, Ukrtransgaz, Ukrnafta, Gas Supply Company Naftogaz of Ukraine, and Ukrtransnafta.
In addition, in January-June 2024, the group’s companies paid UAH 44 billion in taxes to the state budget, or 7.5% of all payments controlled by the State Tax Service of Ukraine.
As reported, in 2023, the net consolidated profit of Naftogaz Group amounted to UAH 23.1 billion, compared to a loss of UAH 79.1 billion in 2022.
The net profit of solvent banks in Ukraine in January-August 2024 reached UAH 106.08 billion, which is 11.6% more than in the same period in 2023, according to the National Bank of Ukraine (NBU).
According to the NBU, in August this year, banks’ net profit decreased to UAH 12.47 billion from UAH 14.58 billion a month earlier, up 4.8% compared to August 2023.
According to the National Bank, net interest income in January-August this year increased by 18.5% to UAH 152.74 billion, while net commission income increased by 8.2% to UAH 36.11 billion.
The share of interest income in the total structure of banks for 8 months of this year increased to 68.6% from 67.5% for 8 months of last year, while the share of commission decreased to 21.0% 21.9%.
At the same time, in August of this year, net interest income increased by 11.6% to UAH 19.98 billion compared to August of last year, while net fee and commission income increased by 14.3% to UAH 4.48 billion.
According to the NBU, in August, banks added additional reserves in the amount of UAH 0.78 billion compared to UAH 0.75 billion in July and UAH 1.68 billion in June, but in general, since the beginning of the year, this figure amounted to only UAH 1.15 billion compared to UAH 6.52 billion for 8 months of last year, including UAH 1.62 billion in August-2023.
It is noted that banks paid UAH 30.71 billion in income tax in January-August this year, compared to UAH 17 billion last year.
As reported, last fall, the Verkhovna Rada retroactively increased the bank profit tax for 2023 from 18% to 50%, setting it at 25% for the following years. However, this year, in September, the Parliament again approved in the first reading a retroactive increase in the bank profit tax to 50% in 2024.
However, the National Bank opposes this and said it would try to persuade parliamentarians.
In March-June, mobile operator lifecell’s revenue increased by 10% year-on-year to UAH 3.215 billion.
According to the report of the parent company Turkcell, lifecell’s net profit in the second quarter increased by 3% to UAH 630.2 million.
Lifecell’s EBITDA increased by 4% to UAH 1.77 billion in the period, but its EBITDA margin decreased by 3.9 percentage points to 55.2%.
The company’s capital investments in the second quarter decreased by 28% to UAH 1.12 billion.
According to Turkcell, on September 9, the company completed the transfer of shares, as well as all rights and obligations in its subsidiaries LifeSell LLC, Global Bilgi LLC and Ukrtower LLC to DVL Telecom, one of the companies of the NJJ Holding group of French billionaire Xavier Niel. Turkcell is no longer a shareholder in these subsidiaries, the company said in its quarterly report.
On the closing date of the transaction, Turkcell received $524.3 million under the share purchase agreement.
Turkcell’s top managers, answering investors’ questions during the conference call, confirmed that the final sale price will be determined based on adjustments to be made at the closing of the transaction, based on the level of net cash/debt as per the financial statements to be prepared at the closing date.
Earlier it was reported that the NJJ consortium transferred $524.3 million to Turkcell and completed the acquisition of Datagroup-Volia and lifecell.
In January-June 2024, PJSC Ukrnafta received UAH 10.6 billion in net profit.
“The results were confirmed by the audit of Crowe Erfolg Ukraine, Crowe Audit & Accounting Ukraine,” the company said on Wednesday.
During this period, the company paid UAH 20.2 billion to the state budget in the form of taxes, duties, dividends on the state share and customs payments.
“In total, since the beginning of state management and the start of the new management at the end of 2022 and as of today, the company has received almost UAH 40 billion in profit,” said Sergiy Koretsky, Ukrnafta’s CEO.
“Ukrnafta is the largest oil producer in Ukraine and the operator of the national network of filling stations. In March 2024, the company took over the management of Glusco assets and operates 545 filling stations – 460 owned and 85 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTA cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is currently managed by the Ministry of Defense.
Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, posted a net profit of $13.3 million in the first half of 2024, down 35.4% year-on-year, due to higher feed costs and falling prices for finished products.
According to the group’s report on the Warsaw Stock Exchange, its revenue for the first six months of this year fell by 26% year-on-year to $64.2 million, due to a 30% drop in the cost of eggs (year-on-year), dry and liquid egg products by 8% and 25%, respectively.
In particular, revenues from eggs fell to $39.86 million from $62.11 million, and pre-tax profit in this segment fell to $4.39 million from $8.66 million, while revenues from egg products decreased slightly to $24.35 million from $26.58 million, although the decline in pre-tax profit was greater – to $9.08 million from $12.22 million.
Also, sales in Ukraine decreased to $31.18 million from $40.76 million, and exports to $33.03 million from $47.93 million.
In January-June this year, Ovostar’s gross profit decreased by 29.3% to $19.1 million, operating profit by 43.8% to $11.3 million, and EBITDA by 41.0% to $12.8 million.
The weakening of the hryvnia also led to the fact that in the first half of this year, Ovostar’s total profit amounted to $6.46 million against $20.59 million in the same period last year.
It is noted that during the year, the total number of livestock increased from 7.3 million to 7.6 million, although the number of laying hens decreased from 6.5 million to 6.2 million, resulting in a 4% decrease in egg production to 706 million.
Against the backdrop of Russia’s full-scale military invasion of Ukraine and the overall unfavorable situation in the country’s economy, the management decided to suspend the investment program, but the company’s investments increased to $6.8 million in the reporting period from $5.2 million in the first half of last year.
“In the first half of 2024, the group started construction of two poultry houses for young poultry with a total budget of about $3.8 million, of which $1.8 million has already been spent as of the reporting date. The planned completion date is April 2025,” the report said.
The group also reported that its net debt jumped from $47.9 million to $72.4 million, but free cash flow increased by about the same amount – from $50.3 million to $74.4 million. In particular, over 12 months in Ukraine, they decreased to $22.7 million from $24.7 million, including the equivalent of $0.4 million in hryvnia from $7.6 million, in Latvia – to $10 million from $21.2 million, while in the UK, an increase to $40.31 million from $0.12 million was recorded.
As reported, Ovostar Union’s net profit for the first quarter of 2024 fell by 22.4% to $6.97 million, while revenue decreased by 24.6% to $35.67 million.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., held an IPO of 25% of its shares on the WSE and raised $33.2 million. However, this year, the majority owners of the agricultural holding, CEO Boris Belikov and member of the Board of Directors Vitaliy Veresenko, together with Fairfax Financial Holding, accumulated 95.45% of the shares and bought out the remaining 4.55%, or 277,066 thousand shares, in a squeeze-out at a price of PLN70 per share (about $17.3 at the then exchange rate).
