Ukrainian banks got $804,9 million profit in 2018

Source : 112 Ukraine

The profit in the Ukrainian banking system reached its historical maximum
16:30, 7 February 2019

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The Ukrainian banking system has got $804,9 million profit in 2018. This sum surpasses the incomes of the previous years, as the National Bank of Ukraine (NBU) reported.

NBU assures that last time the banking system was profitable in 2013. However, then the sum did not surpass $51 million.

Related: Ukraine's National Bank receives award of Central banking awards first ever

Such growth of the profit of the banking system is explained by the decrease of the contributions to the reserves. Such contributions decreased almost twice from $1.8 billion (2017) up to $879 million (2018). The net percentage and commission income of the banking system have increased by 38%.

The NBU explains the main source of the percentage income by the incomes of the banks from the credits and investment in the securities.

Related: National Bank explains low position of Ukrainian hryvnia in Big Mac Index

Besides, the increase in profitability is explained by the decrease in the number of loss-making banks. 64 banks out of 77 were profitable and got $1.2 billion in 2018. The losses of 13 banks made $471 million.

The banking group with foreign capital got $556 million of income in 2018. PrivatBank has got $434 million of income and the banks with the Russian capital have lost $408 million and became unprofitable.

The NBU expects the significant profit in 2019 as the volumes of the credits continue to grow.

Related: Deposit Guarantee Fund plans to finish liquidation of 40 banks in 2019

As we reported the international reserves of Ukraine made $20,8 billion as of February 1, 2019, and remained at the level of the beginning of the year.

Besides, the National Bank of Ukraine predicts the growth of the GDP in Ukraine by 2,5% in 2019.

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