Ukrainian banks cut net income by 22%


Read the top-news of politics in Ukraine and the world, the latest political news from the UNIAN news agency.

Photo from UNIAN

Photo from UNIAN

Ukrainian banks in January-September 2020 received UAH 37.6 billion(US$1.3 billion)in net profit, which was 22% down against UAH 48 billion(US$1.7 billion)reported year-over(y-o-y), the National Bank(NBU)says.

The country's banks in the third quarter of 2020(Q3)posted UAH 13.8 billion(485.9 million)in net profit, which was 1.8 times up from Q2 and 20% down y-o-y, according to NBU's statement published on the regulator's website on October 29.

Major reason behind decline in banks' revenue

"The main reason behind the lower financial result this year is the formation of reserves worth UAH 20.9 billion [US$735.9 million] for expected losses. For comparison, in 2019, banks over the same period formed reserves worth UAH 8.3 billion [US$292.3 million]. The overall decline in business activities during the quarantine and falling demand for loans and banking services, as well as the growth in loan defaults have affected the banks' interest and commission yield," the regulator said.

According to the NBU, the growth rate of the banks' net commission and interest income was the lowest in the last four years, but at the same time, the volume of such incomes is sufficient to cover the administrative expenses of most banks.

Profit-making banks

As of October 1, 2020, some 62 banks were profitable out of 74 solvent banks, as they received UAH 40.8 billion(US$1.4 billion)in net profit, which covered the losses of 12 banks totaling UAH 3.2 billion(US$112.7 million).

Read also Banks in Ukraine positive of prospects for lending next year "Nine month-profit was generated mainly by PrivatBank(UAH 21.3 billion/US$750 million, or 56.6% of total profits)and a group of banks with foreign capital, except for Russian one(UAH 9.2 billion/US$323.9 million)," the NBU said.


Ukrainian banks' net profit fell by 26.4% in January-August 2020 year-on-year, to UAH 32.6 billion(US$1.1 billion).

Author: UNIAN

Багнет Искусство проводить обыски Багнет
Зеркало Недели Оккупанты ударили из гранатомета по позициям ВСУ на Луганщине. Зеркало Недели Раненые вражеским снайпером украинский боец скончался в госпитале.
УНИАН Британский археолог заявил, что раскопал дом Иисуса Христа. УНИАН Профессор предполагает, что в этом доме Иисус Христос провел свое детство.
InternetUA Компания Netflix анонсировала строительство одной из крупнейших в мире киностудий. InternetUA Netflix вложит миллиард долларов в расширение студии ABQ в городе Альбукерке, штат Нью-Мексико. Компания планирует создать крупнейшую в Северной Америке киностудию.
Багнет Нужно ли детям сексуальное воспитание Багнет
Related news

Government again postpones pay rise for Ukrainian educators.

The resolution was passed by Volodymyr Groysman's government.

3 3

Weekend quarantine: Zelensky announces promised bailout for businesses.

The government was instructed to adopt a comprehensive program to support Ukrainian companies amid quarantine-related curbs.


Energy Ministry finalizing concept of reforming coal industry.

The Energy Ministry of Ukraine is finalizing a concept of reforming the coal industry to submit the project for government approval.

4 1

Ukraine to deepen cooperation with BSEC - Kryklii

Ukraine will deepen cooperation within the Organization of the Black Sea Economic Cooperation(BSEC)to ensure the transportation of goods in the Black Sea region, according to Ukrainian Infrastructure Minister Vladyslav Kryklii.

5 1

SkyUp Airlines announces flights to Berlin

Ukraine’s SkyUp Airlines has announced its intention to launch Kyiv-Berlin-Kyiv flights in the spring of 2021, the airline's press service reports.


Great Construction program: 100 schools already built in Ukraine.

The construction of 100 schools has already been completed in Ukraine as part of the Great Construction program.


Prices of tests for COVID-19 inflated in Ukraine – experts.

The price of the same test may vary in different laboratories.

5 3

Ukrainian farmers harvest grain and leguminous crops from 96% of sown area.

As of November 23, Ukrainian farmers harvested 60.9 million tonnes of grain and leguminous crops from an area of 14.7 million hectares, or 96% of the forecast.

5 1

Stepanov: Health sector needs financing at 5% of GDP to start «coming out of coma».

Ukrainian healthcare workers' salaries are the lowest in the country.

5 3

Ukraine, Israel agree FTA deal

This will greenlight the increase in Ukrainian exports, closer cooperation in high-tech, engineering, and development of investment cooperation.

5 2