Business news from Ukraine

PRAVEX BANK TOPS LIST OF UNPROFITABLE UKRAINIAN BANKS IN JAN-FEB 2021

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.

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PROFIT OF UKRAINIAN BANKS FALLS BY 22.2% IN APRIL-SEPT

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%.

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UKRAINIAN BANKS RAISE PROFIT BY 24% IN Q1

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.

UKRAINIAN BANKS START PUBLISHING RESULTS OF STRESS TESTS

Ukrainian banks have started posting the results of their stress tests conducted by the National Bank of Ukraine (NBU) on their websites. So, the state-owned PrivatBank and Ukrgasbank, as well as UkrSibbank, OTP Bank, Credit Agricole Bank, ProCredit Bank and Kredobank did not need additional capital according to the results of stress tests.
The estimated capital shortage of state-owned Oschadbank under the baseline scenario was UAH 13.49 billion, under the adverse macroeconomic scenario – UAH 28.25 billion, and by September 1, thanks to the measures taken, the bank had reduced it to UAH 6.19 billion and to UAH 21.14 billion, respectively.
The need in capital of state-owned Ukreximbank under the baseline amounted to UAH 9.776 billion, under the adverse macroeconomic scenario – UAH 17.53 billion; by September 1, the bank had decreased the figures to UAH 3.671 billion and to UAH 12.188 billion, respectively.
The estimated capital shortage of the subsidiary of the Russian Sberbank under the baseline scenario was UAH 1.44 billion, under the adverse scenario – UAH 4.759 billion. By September 1, as a result of the measures taken, the financial institution had no need for additional capital.

UKRAINIAN BANKS TO GET EUR 70 MLN CREDIT LINE FROM EU TO SUPPORT LOCAL SME

Raiffeisen Bank Aval, ProCredit Bank and OTP Bank (all based in Kyiv) have signed a credit line agreement with the European Bank for Reconstruction and Development (EBRD) and the European Union (EU) for the total amount of up to EUR 70 million in hryvnia equivalent under the SME (small and medium-sized enterprises) Finance Facility of the EU4Business initiative.
An Interfax-Ukraine correspondent has reported that the signing ceremony took place at the EBRD office on Tuesday.
In particular, Raiffeisen Bank Aval will receive a credit line with the limit of EUR 25 million in hryvnia equivalent, ProCredit Bank – EUR 20 million in hryvnia equivalent, and OTP Bank – EUR 25 million in hryvnia equivalent.
The total limit of the facility is EUR 120 million in hryvnia equivalent.

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UKRAINIAN BANKS IN JAN-AUG 2019 RECEIVE UAH 44.29 BLN NET PROFIT, WHICH IS 3.2 TIMES MORE THAN IN 2018

Solvent Ukrainian banks in January-August 2019 received UAH 44.29 billion in net profit, which is 3.2 times more than in the same period in 2018, the National Bank of Ukraine (NBU) has said. “More than half (58.3%) of this result was provided by the activities of state-owned PrivatBank,” the central bank said on its website.
According to the report, the banks’ income for the reporting period increased by 28.5%, to UAH 164.99 billion, expenses by 5.2%, to UAH 120.7 billion.
Based on the previously released data, in August the net profit of Ukrainian banks grew by 1.9 times, to UAH 7.57 billion: income rose by 20.8%, to UAH 23.59 billion, while expenses by 2.5%, to UAH 16.02 billion.
The National Bank explains the growth of the banks’ profitability for the eight months of this year by four factors: the growth of net interest and commission income of the banks by 18%, to UAH 53 billion and by 15%, to UAH 28.4 billion respectively, a positive result from revaluation and purchase and sale operations with UAH 14.9 billion, as well as a low volume of the banks’ payments to reserves with UAH 8 billion against UAH 14.4 billion for the eight months of 2018.

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