Due to the war, Oschadbank has suffered losses worth billions of UAH in the first half of the year
The bank explains the losses by additional formation of reserves amounting to UAH 5.4 billion
What happened? Oschadbank, also known as the State Savings Bank of Ukraine registered losses amounting at UAH 4.03 billion for the first half of the year. For the same period of 2021, the bank declared a profit of UAH 512.6 million.
Source. Finbalance.
Details. The state bank’s losses amounted to UAH 448.6 million in June, UAH 1.3 billion in May, UAH 2.53 billion in April, UAH 199 million in March, and UAH 683 million in February.
Only in January, Oschadbank declared a profit of UAH 1.13 billion.
The bank explains the losses by additional formation of reserves amounting to UAH 5.4 billion.
“The need for such reserves is caused by the deterioration of the quality of the loan portfolio as a result of russia’s military attack on the territory of Ukraine. The bank always adheres to a conservative approach to the formation of reserves,” the comment of Oschadbank states.
In addition, the reduction or cancellation of many commissions and credit vacations for borrowers, which the bank introduced for a certain period, had an effect.
“In the conditions of war, the bank ensures high indicators of liquidity and solvency, stably provides banking services and credit assistance to citizens and businesses,” the financial institution emphasises.
Background. Likewise, PrivatBank's profit for the first half of the year decreased by half compared to the same period last year: the indicator fell from UAH 11.6 billion to UAH 6.3 billion.
However, at the beginning of July, some Ukrainian banks made a profit for the first time since the beginning of the full-scale war. Despite the improvement in statistics, the balance sheet of Ukrainian banks still remains negative – minus UAH 1.3 billion.
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