In the first half of 2024, solvent banks of Ukraine received UAH 79 billion in net profit. This was reported by the National Bank of Ukraine, according to Komersant ukrainskyi
The NBU named the key factors of profitability:
- Maintaining a high net interest margin.
- Almost zero allocations to provisions for losses from active operations.
Despite a general decline in the yield on major types of bank assets during the second quarter, financial institutions managed to maintain profitability by increasing their assets. The decline in yields on NBU certificates of deposit was particularly noticeable, but banks responded by reducing the volume of such investments.
The banks’ return on equity in the first half of 2024 was 48.4%. Although this is lower than the figure for the same period in 2023 (56%), it still remains at a high level.
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The NBU noted an increase in the amount of income taxes accrued by banks – in the first half of 2024, they reached UAH 22 billion.
Out of 62 solvent banks, only seven small institutions showed losses, totalling UAH 171 million.
For comparison, in the whole of 2023, banks received UAH 82.8 billion in net profit after paying UAH 76.2 billion in income tax at the increased rate of 50%.
Meanwhile, the Deposit Guarantee Fund is putting up for sale assets of bankrupt banks worth UAH 324.9 million.