Solvent banks of Ukraine in January-August 2021 received UAH 45.592 billion of net profit, which is 1.4 times more than in the same period in 2020 (UAH 32.677 billion), according to data published on the website of the National Bank of Ukraine (NBU). According to the report, bank incomes for the eight months of this year increased by 2.2% against the figure for the same period last year – up to UAH 172.681 billion, in particular commission income increased by 35% – up to UAH 58 billion.
At the same time, the result from revaluation and from sales and purchases was negative and amounted to UAH 1 billion, while for the same period last year it was positive and amounted to UAH 20.4 billion.
At the same time, the expenses of the banking system in January-August 2021 decreased by 6.8% compared to this indicator in 2020 – to UAH 127.09 billion, including deductions to reserves – by 2.8 times, to UAH 20.4 billion. At the same time, commission expenses increased by 1.5 times – up to UAH 21.8 billion.
As reported, Ukrainian banks in 2020 reduced their net profit by 29% – to UAH 41.3 billion, but in the fourth quarter the decline was 63% due to increased allocations to reserves.
As of August 1, 2021, ten banks issued 1,917 loans to small, medium and micro-businesses (SME) through portfolio government guarantees totaling UAH 5.007 billion, the Ministry of Finance reported.
“Liabilities on the principal debt, which are partially secured by state guarantees on a portfolio basis, amounted to UAH 2.316 billion. This is about 59% of the total limit of guarantees provided in 2020 (UAH 3.93 billion),” the Ministry of Finance said on its website.
According to it, in July this year, banks provided 122 such loans for a total of UAH 735 million with a share of the state’s liabilities of UAH 306 million.
In terms of the number of loans issued, PrivatBank is in the lead – 945 loans for UAH 859 million in total, which is 100% of the limit of such guarantees provided to the bank in 2020. The second largest bank is Oschadbank – 680 loans for UAH 2.036 billion, according to the data of the Ministry of Finance.
“The program is in the greatest demand in Kyiv, where, in total, 151 loans were issued for UAH 542 million. In Lviv and Dnipropetrovsk regions, which are among the top three, these figures are 136 loans (UAH 340 million) and 129 (UAH 300 million),” the ministry said.
By type of economic activity, most of the loans, partially secured by state guarantees on a portfolio basis, were issued in the areas of wholesale and retail trade (675), agriculture (558) and processing industry (277).
The number of banks expecting an increase in the volume of their loan portfolio over the next 12 months amounted to 88% for the corporate segment and 79% for lending to the population, according to the results of a survey conducted by the National Bank of Ukraine (NBU) on the conditions of bank lending.
“In the next 12 months, 79% of respondents predict an increase in the loan portfolio of households, 88% – corporate portfolios. The share of banks that expect an increase in the loan portfolio of enterprises is the largest in the entire history of observation. 67% of financial institutions predict an increase in funding due to an increase in funds of both population and corporations,” the central bank said in a review on its website on Friday.
In addition, in the second quarter, half of the respondents noted an increase in demand for both consumer lending and mortgages.
In the second quarter, survey participants noted a moderate increase in liquidity risk, credit and interest rate risks, while in the next three months banks expect further growth in credit risk, simultaneously with a decrease in interest rate risk and liquidity risk.
More than 80% of banks consider the total debt burden to be medium, in addition, for large enterprises it is higher when compared with SMEs.
In the next quarter, financial institutions forecast the largest easing of hryvnia business lending standards since 2013. In particular, in mortgage loans, due to positive expectations of the prospects for the real estate market, and in consumer loans due to positive expectations of consumer solvency and general economic activity, as well as competition with other banks and nonbank financial institutions.
The authorized banks issued 512 loans under the Affordable Loans 5-7-9% program for UAH 1.6 billion over the past week, and in general, from the start of the program, the number of loans exceeded 18,100 for a total of UAH 47.5 billion.
As reported on the website of the Ministry of Finance, out of 31 banks participating in the program, the leaders in issuing loans are PrivatBank (agreements for UAH 4.4 billion), Oschadbank (for UAH 4.9 billion) and Raiffeisen Bank Aval (UAH 8.95 billion).
Authorized banks over the past week issued 592 loans under the Affordable Loans 5-7-9% program for UAH 1.9 billion, and in general, from the start of the program, the number of loans exceeded 17,600 for a total of UAH 45.9 billion.
The Ministry of Economy reported on the website that UAH 1.3 billion of the total amount of contracts concluded last week are loans to replenish working capital at 0%, UAH 480 million are loans to refinance the previously issued loans, and the amount of investment loans totaled UAH 194 million.
The Ministry of Finance, in turn, noted that out of 31 banks participating in the program, the leaders in issuing loans are PrivatBank (5,800 agreements for UAH 4.2 billion), Oschadbank (almost 2,400 agreements for UAH 4.5 billion), and Raiffeisen Bank Aval (1,900 loans for UAH 8.7 billion).
The loan portfolio of Ukrainian banks in April 2021 grew by 1.7%, to UAH 1.076 trillion, and the volume of non-performing loans (NPL) – by 0.8%, to UAH 425.88 billion, according to reports posted on the website of the National Bank of Ukraine (NBU).
According to its data, the share of non-performing loans in the banking system in April fell from 39.93% to 39.57%.
The National Bank indicated that over the month the portfolio of loans in the corporate sector increased by 1.9%, to UAH 807.408 billion (including the NPL volume in it – by 0.8%, to UAH 369.615 billion), and the portfolio of loans issued to individuals – by 1.6%, to UAH 218.678 billion (NPL – by 0.7%, to UAH 52.289 billion).
At the same time, the volume of interbank loans increased by 0.6%, to UAH 39.388 billion (including NPL decreased by 0.1%, to UAH 980 million), while the volume of loans issued to state and local authorities decreased by 3%, to UAH 10.909 billion (NPL remained at 0).
According to the National Bank, in April, the share of NPL in the portfolio of loans provided to the corporate sector decreased by 0.5 percentage points (to 45.78%), loans to the population – by 0.2 percentage points (to 25.28%), interbank loans – by 0.2 percentage points (to 2.49%), and loans to state authorities remained at the level of 0%.
The central bank report indicates that the loan portfolio of state-owned banks excluding PrivatBank in April 2021 increased by 0.2%, to UAH 299.733 billion (the NPL volume in it increased by 1.8%, to UAH 131.15 billion), while PrivatBank’s loan portfolio grew by 0.4%, to UAH 246.337 million (NPL remained at the level of UAH 177.99 billion).
In addition, over the month, the loan portfolio of banks with foreign capital grew by 3.5% (to UAH 352.736 billion), and with private capital – by 2.6% (to UAH 177.577 billion), while the NPL volume in them decreased by 0.6% (to UAH 93.55 billion) and by 1.7% (to UAH 23.2 billion).
