The banking system of Ukraine (solvent banks as of the reporting date) in January-June saw UAH 1.85 billion of net loss, the National Bank of Ukraine (NBU) has reported on its website.
The NBU also recalled that in Q1 profit of the banking system was UAH 4.1 billion (taking into account adjusting entries as of May 15).
“The main reason why the figures worsened was large growth in sending the funds to reserves by banks in Q2, to UAH 12.5 billion. Two banks formed a lion’s share of them – PrivatBank and Prominvestbank (PIB),” the central bank said.
The NBU said that in H1 total loss of state-owned banks reached almost UAH 1.8 billion, while not taking into account PrivatBank, state-owned banks would posted UAH 1.1 billion of net profit.
Banks with foreign capital saw loss of UAH 1.1 billion, while not taking into account PIB, these banks would have seen almost UAH 3.7 billion of net profit.
Total net profit of banks with private capital over the period exceeded UAH 1 billion.
As of July 1, 70 banks out of 90 solvent banks saw profit, being UAH 8.22 billion, and 20 banks saw loss of UAH 10.07 billion.
The NBU said that net commission income grew by 34% and net interest income rose by 3.5% in H1 2017.
The central bank said that net interest income grew thanks to quicker reduction of interest expenses compared to interest income for transactions of banks with individuals.
According to the NBU, the Ukrainian banking system in January-June 2016 saw UAH 9.183 billion of net loss. Then 108 banks were operating in Ukraine. Since early 2017, the new rules of assessing credit risks have been introduced. (Interfax-Ukraine/Business World Magazine)
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