Ukrainian Banks’ Profits Grow by 20% in 2024

This significant jump contrasts with 2023 figures, reflecting continued resilience and recovery in the banking sector despite ongoing economic challenges.

Table of Contents

1. Key Highlights
2. Overall Performance
3. Tax Contributions
4. Leaders in Profit
5. State-Owned Banks
6. Foreign Capital Banks
7. Banks with Private Capital
8. Outlook and Conclusion

1. Key Highlights

• Total Profit: UAH 103.7 billion after tax—a 20% increase from 2023.
• PrivatBank’s Dominance: Accounts for 39% of the sector’s profits.
• State-Owned Banks’ Share: 65% of total profit, amounting to UAH 67.19 billion.
• Tax Payments: Banks must pay UAH 83.72 billion in profit tax—14% higher than 2023 figures.
• Sector Consolidation: 85% of all profits come from the top 10 banks.

2. Overall Performance

• Profit After Tax:
  - Ukrainian banks collectively earned UAH 103.7 billion in 2024.
  - Represents a 20% year-over-year rise from 2023.
• Loss-Making Banks:
  - Out of 61 banks, 52 finished the year in profit, while 9 incurred losses of UAH 418 million.
  - One bank, Kominvestbank, was declared insolvent at year-end.

3. Tax Contributions

• UAH 83.72 Billion:
  - Total profit tax due, 14% higher than the prior year.
• PrivatBank’s Major Share:
  - Paid UAH 40.86 billion in taxes, nearly half of all tax receipts from the sector.

4. Leaders in Profit

• Top 10 Banks:
  - Generate 85% (UAH 88.57 billion) of the entire sector’s profit.
  - Monobank’s parent, Universal Bank, replaced Citibank in this exclusive group.
• PrivatBank:
  - 39% share of total banking sector profit, earning UAH 40.14 billion after tax.

5. State-Owned Banks

• Combined Profit: UAH 67.19 billion, a 23% increase from 2023.
• System-Wide Share: 65% of the total sector profits.
• Oschadbank:
  - Triple the previous year’s profit, recording the highest jump among state-owned banks.
• Tax Responsibility:
  - Owe UAH 48.36 billion in corporate profit taxes.

6. Foreign Capital Banks

• Total Profit: UAH 22.51 billion, or 22% of overall banking profits.
• Credit Agricole Bank:
  - Led foreign banks with a 1.5x increase in net profit compared to 2023.
• Tax Payments:
  - UAH 22.99 billion in taxes, making up 27.5% of total bank profit tax.

7. Banks with Private Capital

• Net Profit: UAH 14 billion, marking a 1.5x increase from 2023 (UAH 9.4 billion).
  - Accounts for 13% of total banking profits.
• MTB Bank:
  - Had the most substantial growth—6.8x compared to the previous year.
• Tax Increase:
  - Profit tax soared by 37% to UAH 12.37 billion—14.7% of the sector’s total.

8. Outlook and Conclusion

The 20% upswing in Ukrainian banks’ profits highlights steady resilience and adaptation to ongoing economic pressures. With 85% of all profits concentrated in the top 10 institutions—led by PrivatBank—the sector appears both robust and consolidated. State-owned banks continue to dominate, reflecting government-backed stability, while foreign and private capital banks also show notable gains.

As Ukraine navigates macroeconomic challenges, the sector’s rising profitability and significant tax contributions signal a path toward stronger financial fundamentals. Key indicators—including continued lending growth, increased digitalization, and regulatory support—could further buoy Ukrainian banks in the coming years.