Solvent banks in the first half of 2023 received 67.6 billion UAH in net profit, compared to a 4.6 billion UAH loss for the same period last year, the regulator reported. It is noted that the main factors of the sector's profitability remain the growth of interest income, primarily from highly liquid assets, and the insignificant volumes of reserve formation.
According to the NBU, banks' operating income grew by 35% year-on-year. "Net interest income for the first half increased by 41% compared to the January – June figure of the previous year. Despite the increase in interest expenses due to higher deposit interest rates, interest income grew substantially," the NBU informed.
However, it is clarified that net commission income grew by 22% year-on-year despite a certain slowdown in the spring months, especially due to a decrease in card operations.
According to the National Bank's data, net operating profit before deductions to reserves increased in the first half of 2023 by 57% year-on-year – to 87.4 billion UAH. "The rate of deductions to reserves for losses from active operations decreased by 92% compared to the figures of the first half of the previous year," the regulator noted, adding that overall, since the beginning of full-scale invasion, banks have formed reserves for loans of 103 billion UAH.
In addition, it is reported that the return on equity for the sector as of 1 July 2023, was 56% compared to minus 4% a year ago. The tax on profit accrued for the half-year exceeded the corresponding annual figure of the historically most profitable year of 2021.
"As of July 1, 2023, only eight out of 65 solvent institutions were loss-making, with a total loss of 112 million UAH," the NBU reported.
Background. Mind earlier reported that Ukrainian banks had issued six times more mortgage loans in May than in April.