Ukraine’s state-owned banks turned a profit of UAH 16.2 billion in January-June, down by UAH 3.4 billion YoY, the Ukrainian Finance Ministry’s press service reported.
The profit of public sector banks in the first half of 2020 shrank by 17% (UAH 3.4 billion) primarily due to an increase in spending on the formation of banks’ reserves.
Since the beginning of the year, the loan portfolio of public sector banks has decreased by 0.7% (UAH 1.5 billion).
At the same time, in the second quarter, against the background of the COVID-19 pandemic, banks observed a decline in demand for loans. In general, the demand for loans fell by 5.7% (UAH 13.1 billion) compared to the same period last year.
Instead, there was an increase in customer funds for servicing the public sector banking system. In the first half of 2020, their volume grew by 10%, or by UAH 58.6 billion (in the second quarter by 3.6%, or by UAH 23.3 billion). In particular, funds of legal entities grew by 6%, or by UAH 15.5 billion (by 5.7%, or by UAH 14.3 billion), whereas funds of individuals increased by 12%, or by UAH 41.1 billion (by 3%, or by UAH 11.1 billion).
The profit of state-owned banks in the first half of 2019 amounted to about UAH 19.6 billion. (Ukrinform/Business World Magazine)