Ukrainian Banks Record 18% Increase in Net Profits in Early 2024, NBU Reports

by Roman Cheplyk
Tuesday, May 14, 2024
Ukrainian Banks Record 18% Increase in Net Profits in Early 2024, NBU Reports

The National Bank of Ukraine (NBU) has announced that Ukrainian banks have achieved an 18% increase in net profits since the start of 2024 compared to the same period in the previous year

The banks recorded a net profit of 40.518 billion hryvnias in the first quarter.

The NBU highlights that the growth in profitability was driven by an increase in interest income and reduced deductions to reserves for potential operational losses. Specifically, the banks' interest income surged by 25% to 84.94 billion hryvnias, while overall income rose by 16% to 120.71 billion hryvnias.

Concurrently, total expenses increased by 14% to 80.19 billion hryvnias, but financial institutions lowered their reserve deductions by 1.44 billion hryvnias. "Today's profits are a testament to the banks' stability, enabling them to fortify their capital. This robust capital base is crucial for enhancing credit distribution, a trend that is already becoming apparent," stated the NBU.

Additionally, the NBU revised the annual profit figure for banks in the previous year to 83.2 billion hryvnias after accounting for additional income tax contributions by some banks totaling 3.2 billion hryvnias.

The report also noted that in March 2024, total bank deposits insured by the Individual Deposit Guarantee Fund amounted to 1.228 trillion hryvnias, with over a third of these deposits held in foreign currencies. Following recent currency restrictions, the import of gold by banks has been completely halted, emphasizing the strict regulatory framework within which Ukrainian banks currently operate.

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