In the second quarter, the share of state banks decreased by 0.7 percentage points to 50.2%. However, taking into account the transition of the systemically important Sense Bank to the group of state banks, this group's share in the sector's assets exceeded 53% in July.
This was reported by the National Bank.
It is stated that the volume of net assets of solvent banks increased by 5.6% in the second quarter. Primarily, financial institutions continued to increase the volumes of NBU deposit certificates. The regulator explains that the introduction of three-month deposit certificates with higher profitability in April encouraged banks to invest in this tool. By the beginning of July, they amounted to about 162 billion UAH.
"Banks' interest income increased by more than 50% on an annual basis. The largest share of interest income comes from NBU deposit certificates and government bonds, accounting for 52% for the quarter," the NBU reported.
According to the National Bank, the growth rate of interest income from businesses slowed to 19.3% annually, while interest receipts from individuals continued to decrease. Interest expenses, due to a significant portion of cheap current accounts in the portfolio, grew more moderately than income. "Thus, net interest income for the quarter grew by 40.2% on an annual basis," added the regulator.
The NBU also reported that net commission income decreased in April-May, but recovered to March levels in June. It is clarified that compared to the previous quarter it was 3% less, but grew by 24.3% annually.
In addition, profits from foreign exchange trading decreased, although they remained higher than in 2021. "Throughout the second quarter, banks were liquidating reserves for loans and debtor liabilities, while setting up 3.4 billion UAH reserves for government bonds due to changes in volume and duration of the portfolio," the National Bank highlighted. It also added that the total deductions to reserves for the quarter were only 0.8 billion UAH.
Background. Mind previously explained how Sense Bank had survived nationalisation and a change in leadership.