The banking sector of Ukraine has reported net losses of $901 million over 2017, according to the February edition of the “banking sector review” published on the website of the National Bank of Ukraine (NBU), Interfax-Ukraine reports.
According to the document, Privatbank and two banks with Russian capital accounted for most of the losses.
Altogether, in 2017, the number of unprofitable banking institutions shrank from 33 to 18 by the end of 2016, including those who posted operating losses before allocation to reserves dropped from 23 to 14.
The number of solvent banks over 2017 fell from 96 to 82.
The director of the financial stability department of the central bank Vitaliy Vavryshuk at a press conference on Wednesday told that the banks’ operating profits before the formation of reserves rose by 8%, but the increased allocation to reserves in the final quarter of the year caused the overall loss of the banking sector.
According to his estimates, the banking sector will return to profitable operations in 2018.
“We expect the banking sector to return to profitability in 2018. We expect both a significant rise in operating profits of banks and a considerable reduction of allocation to reserves. At the end of the day, the majority of banks tried to leave their problems in the last year. They presented the genuine quality of their loan portfolios and allocated their reserves accordingly so that they could start the new year anew and demonstrate profitability”, - V. Vavryshuk said.