Ukrainian Banks Achieve Surplus Profits: Top 5 Leaders

by Roman Cheplyk
Tuesday, July 9, 2024
Ukrainian Banks Achieve Surplus Profits: Top 5 Leaders

In the first five months of the year, Ukrainian banking institutions experienced significant financial success, achieving surplus profits

This period saw banks earning 27% more than in the same period in 2023.

Profitable Banks: Key Figures and Rankings

During this time frame, Ukrainian banks collectively earned 67.97 billion hryvnias in profit after taxation. This performance has translated into a substantial contribution to the state budget, with banks set to pay 16.5 billion hryvnias in income tax, marking a 1.6-fold increase compared to the previous year.

The most profitable banks, accounting for 85% of the total income, are:

  1. PrivatBank:

    • Profit: 23.96 billion hryvnias (after tax)
    • Market Share: 35% of all banks
    • Tax Contribution: 8.04 billion hryvnias
    • Performance Change: 6% less than last year
  2. Oschadbank:

    • Profit Share: 12.9%
  3. Ukreximbank:

    • Profit Share: 6.1%
  4. Raiffeisenbank:

    • Profit Share: 5.9%
  5. FUIB (First Ukrainian International Bank):

    • Profit Share: 4.7%

Highlights of the Leading Banks

  • PrivatBank: As the largest state-owned bank, PrivatBank has maintained its leading position despite a slight decrease in profit compared to the previous year. It remains the highest tax contributor among Ukrainian financial institutions.

  • Raiffeisen Bank: Leading among foreign capital banks, Raiffeisen Bank earned approximately 4 billion hryvnias, which is a 22% increase from the same period last year.

  • FUIB: Dominating the private capital category, FUIB earned 3.2 billion hryvnias, a 7% increase.

Financial Performance and Tax Contributions

Among the 63 banks operating in Ukraine, seven banks reported losses amounting to a total of 131.83 million hryvnias. Despite these few underperforming entities, the overall banking sector showcased robust financial health and substantial contributions to the national economy.

Additional Information

  • PrivatBank plans to sell off customer consumer loans from previous years, totaling 4.8 billion hryvnias in debt, by the end of the current year.

  • Legislation and Financial Solutions: The Ukrainian legislation includes provisions to address situations involving customers with open loans, ensuring fair resolutions with banks and financial institutions.

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