Profit of Ukrainian banks in January-November 2018 totaled UAH 20 billion, and this is an 11-fold rise year-over-year, First Deputy Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova has said.
“The sector this year will make profit, which can be a record for more than 10 years. And most importantly it is real profit!” she wrote on her Facebook page on Thursday.
According to her, the year is not over yet, so various adjustments are possible, including the expenses on creating reserves, but the growth of interest income by almost 20% and commission income by 25% indicates that the banking sector is gradually but surely recovering.
Rozhkova predicted that in 2019, the sector income will remain high, although high interest rates will put pressure on income of banks.
Revenue of Ukrainian banks, not taking into account insolvent banks, in January-July 2018 totaled UAH 108.913 billion, which is 7.17% more than a year ago, according to a posting on the website of the National Bank of Ukraine (NBU).
The number of banks for the period from August 1, 2017 to August 1, 2018, was reduced to 82 from 89. At the same time, the assets of banks during this period increased by 4.05%, to UAH 1.315 trillion, and total assets (not adjusted to reserves for covering possible losses from active operations) grew by 7.77%, to UAH 1.876 trillion.
The National Bank said the interest income of banks over the period increased by 9.37%, to UAH 78.045 billion, while the loan portfolio from August 1, 2017 to August 1, 2018 increased by 10.92%, to UAH 1.078 trillion.
Commission income rose by 3307%, to UAH 28.303 billion, other operating revenues also increased by 56.72%, to UAH 4.661 billion, other income by 21.06%, to UAH 799 million.
Expenses of the banking system over the period amounted to UAH 99.144 billion, which is 2.65% less than for the same period in 2017.
Interest expenses decreased by 8.19%, to UAH 39.154 billion, while the total amount of deposited funds, including term deposits from other banks, grew by 8.18%, to UAH 953.163 billion.
Net profit after taxes of Ukrainian banks in January-July 2018 totaled UAH 9.769 billion, while a year ago the loss of UAH 223 million was recorded.
