In March-May this year, the authorized banks issued 351 loans under the Affordable Mortgage 7% program for a total of UAH 297 million, the Finance Ministry has said.
“As of May 31 of this year, authorized banks for the implementation of the Affordable Mortgage 7% program signed 351 loan agreements for a total amount of UAH 297.3 million, both on the primary [24.28%] and secondary [75.72%] housing markets,” the Ministry of Finance said in a message on its website on Monday.
According to its data, the largest number of applications comes in a regional perspective from Kyiv (36%) and Kyiv region (28%).
Over the past week, the number of issued loans increased by 15%, and the amount of loans by 17%, while the growth of applications in terms of amount and number was 7%, the ministry said.
Some 14 banks are authorized to work under the Affordable Mortgage 7% program. It has been operating since March 1, 2021.
The loan portfolio of Ukrainian banks in January-March 2021 expanded by 0.8%, to UAH 1.06 trillion, while the volume of non-performing loans (NPL) fell by 1.8%, to UAH 422.6 billion, according to a report posted on the website of the National Bank of Ukraine (NBU).
According to it, the share of NPL in the banking system in the first quarter of 2021 decreased from 41% to 39.9%.
The National Bank said that in the first three months of 2021 the portfolio of loans to the corporate sector decreased 0.4%, to UAH 792.540 billion (including the share of NPL in it – by 1.2%, to UAH 366.7 billion), in turn, the portfolio loans to individuals grew by 3.3%, to UAH 215.29 billion (NPL decreased 5.6%, to UAH 54.92 billion).
At the same time, the volume of interbank loans increased by 15%, to UAH 39.15 billion (including NPL decreased 0.3%, to UAH 981 million), while the volume of loans issued to public and local authorities decreased 4.2%, to UAH 11.24 billion (NPL remained at zero).
According to the National Bank, at the end of the quarter, the share of NPL in the portfolio of loans issued to the corporate sector fell by 0.4 percentage points (to 46.3%), loans to the population – by 2.4 percentage points (to 25.5%), interbank loans – by 0.4 percentage points (to 2.5%), and loans to public authorities remained at the level of 0%.
According to the central bank report, the loan portfolio of state-owned banks without PrivatBank in January-March 2021 increased 1.3%, to UAH 299.07 billion (the NPL volume in it decreased 0.1%, to UAH 128.9 billion) , while the loan portfolio of PrivatBank increased 0.2%, to UAH 245.376 million (NPL decreased 1.8%, to UAH 177.99 billion).
In addition, in January-March 2021, the loan portfolio of banks with foreign capital decreased 1% (to UAH 340.7 billion), and with private ones increased 5% (to UAH 173.1 billion), while the volume of NPL in them decreased accordingly 3.1% (to UAH 92.9 billion) and 4.9% (to UAH 22.8 billion).
Thus, at the end of the first quarter of 2021, the share of NPL in the loan portfolios of state-owned banks (excluding PrivatBank) decreased 0.6 percentage points (to 43.1%), in PrivatBank – by 1.4 p.p. (to 72.54%), in banks with foreign capital – by 0.6 percentage points (to 27.28%) and in banks with private capital – by 1.4 percentage points (to 13.2%).
As reported, at the end of 2020, the loan portfolio of Ukrainian banks narrowed by 4.4%, to UAH 1.05 trillion, including the volume of NPL falling by 18.9%, to UAH 430.371 billion.
The number of banks expecting an increase in the volume of their loan portfolio over the next 12 months amounted to 78% for the corporate segment and 82% 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.
“The survey participants positively assess the prospects for lending in the next 12 months: 78% of respondents predict the growth of the loan portfolio of corporations, 82% of households. These are the highest estimates of the growth of the loan portfolio of the population since 2015, however, some large banks expect a certain deterioration in its quality,” the review says.
According to the report, the optimism of the respondents regarding the further increase in funding has grown, in particular, 77% of respondents expect an increase in household deposits, 78% – funds of enterprises.
The banks note that despite expectations of the introduction of new quarantine restrictions, the demand for loans increased from business and the population, in particular, the demand for mortgages was the highest in the entire history of observations.
It is indicated that in January-March 2021, the demand for business loans increased, primarily for loans to SMEs, in hryvnias and long-term loans.
The main factors behind the revival of demand are still cited by banks as a decrease in interest rates, the need of enterprises for capital investments and working capital, as well as debt restructuring.
The banks explain the softening of the creditworthiness for business by the high level of liquidity, increased competition with other banks, as well as improved expectations regarding the overall economic activity and the development of certain industries, primarily for SMEs.
According to the survey, almost a quarter of the surveyed respondents noted an increase in the level of approval of applications for business loans and easing requirements for the size of the loan.
It is indicated that 92% of financial institutions rated the debt burden of household borrowers as average, and more than 80% of financial institutions also rated the debt burden of corporate borrowers.
The survey was conducted from March 19 to April 9, 2021 among credit managers of 23 banks, whose share in the total assets of the banking system of Ukraine is 88%.
State-run PrivatBank topped the rating of the most profit-making Ukrainian banks in January-February 2021, having declared UAH 1.31 billion of net profit, while the largest loss was recorded by Pravex Bank – UAH 34.4 million.
According to the National Bank of Ukraine (NBU), the second position in the list of the most profitable banks was taken by Raiffeisen Bank Aval (UAH 758.705 million), the third by FUIB (UAH 676.133 million). Universal Bank with UAH 472.044 million) was fourth, and Alfa Bank with UAH 426.941 million was fifth.
According to the central bank, BTA Bank was second in terms of loss (UAH 7.68 million), the Ukrainian Bank for Reconstruction and Development (UBRD, UAH 6.671 million) third, AP Bank (UAH 6.389 million) fourth, and Unex Bank (UAH 4.682 million) fifth.
During this period 63 out of 73 banks operating in Ukraine saw profit.
According to the statistics of the National Bank, in terms of total assets, PrivatBank (UAH 561.062 billion) retained the first place in the rating in terms of total assets (UAH 561.062 billion), Oschadbank was second (UAH 279.702 billion), Ukreximbank (UAH 237.061 billion) was third, Ukrgasbank (UAH 149.524 billion) was fourth and Raiffeisen Bank Aval (UAH 118.33 billion) was fifth.
NATIONAL BANK OF UKRAINE, PRIVATBANK, RAIFFEISEN BANK AVAL, UKRAINIAN BANKS
The profit of Ukrainian banks in April-September 2020 fell by 22.2%, to UAH 37.6 billion compared to the same period a year earlier (year-over-year), at the same time, the National Bank of Ukraine (NBU) expects that till the end of 2020 the banking system of Ukraine will be profitable.
According to an overview of the banking sector on the NBU website, the banking sector continues to overcome the consequences of the COVID-19 pandemic, in the third quarter of 2020 the main indicators of banks resumed growth. At the same time, losses from the deterioration of the loan portfolio quality remain the main challenge for the profitable activities of banks.
According to the NBU report, during the third quarter, the rate on 12-month deposits in hryvnias decreased by only 0.9 percentage points, to 8.7% per annum. It is noted that, although the NBU refinancing rate remains unchanged, a further decrease in loan rates is expected, since the potential for their reduction has not yet been exhausted.
According to the National Bank, the spread between three-month and 12-month deposits in hryvnias increased slightly from 0.2 percentage points to 0.5 percentage points, but this did not create incentives for the continuation of the maturity of deposits, and corporate hryvnia funds fell by 1.4 percentage points, to 3.8% per annum.
According to the report, the average interest loan rates to economic entities in hryvnias decreased by 1.0 percentage points, to 9.6% per annum in July-September, and for loans to individuals by 1.9 percentage points, to 30.9% per annum.
It is indicated that the net assets of Ukrainian banks in the third quarter increased by 7.6% to UAH 1.71 trillion, the share of government domestic loan bonds in assets by 4.8 percentage points, and NBU deposit certificates by 17%.
Solvent banks in Ukraine in January-March 2020 received UAH 15.974 billion in net profit, which is 23.8% more than in the same period in 2019 (UAH 12.902 billion), according to data published on the website of the National Bank of Ukraine (NBU). According to the report, the banks’ income for the three months of this year increased by 12.6% against the figure for the same period last year, to UAH 65.343 billion. In particular, commission income rose by 16.8%, to UAH 16.308 billion, and the result from revaluation and sale and purchase transactions by 2.1 times, to UAH 7.739 billion.
At the same time, the banking system’s expenses for January-March 2020 grew by 9.4% compared with this indicator in 2019, to UAH 49.369 billion, in particular commission expenses by 39%, to UAH 5.518 billion, and payments to reserves by 2.9%, to UAH 4.85 billion.
As reported, in 2019 Ukrainian banks increased profit by 2.7 times, to UAH 59.634 billion.
