Bank profits in Ukraine almost quadrupled in 2023
18 February 2024 19:11
Solvent banks in 2023, according to preliminary data, pending confirmation by the annual audit, received UAH 86.5 billion in net profit, according to 
with reference to the National Bank.
According to the National Bank of Ukraine (NBU), these figures are almost four times higher than in 2022 and 12% higher than in 2021, before the outbreak of a full-scale war.
Banks’ operating profits grew moderately: operating income for the year increased by 15% year-on-year, while net operating profit before provisions increased by 19%.
Why did bank profits grow?
The growth of banks’ profits was driven by an increase in interest income from both highly liquid assets and lending.
The main reason for the significant difference in profitability compared to 2022 is the NBU’s significantly lower allocations to provisions for losses from active operations, which decreased by 86% over the year.
In total, since the start of the full-scale invasion, banks have made provisions of UAH 133 billion, of which only UAH 17 billion in 2023.
In December 2023, in line with legislative changes, banks charged an additional annual income tax based on the results of 2023 at a higher rate of 50%.
As of 1 January 2024, the banking sector’s return on equity was 31.6%. A year ago, this figure was 9.7%.
It should be noted that in 2023, Ukrainian banks imported a record amount of foreign currency equivalent to USD 9.5 billion since 2014. For comparison, back in 2022, this figure was USD 5.9 billion.
