According to the National Bank, the financial result of banks after tax for 11 months of 2023 amounted to UAH 130.55 billion, including UAH 7.85 billion in November. The head of the Council's financial committee, Daniil Getmantsev, wrote about this in Telegram.
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Bank profits are growing
In November, there was a certain slowdown in the growth of banks' profits due to an increase in contributions to reserves for possible losses. However, compared to last year, such deductions are 13 times less.
Compared to the same period last year, the net profit of banks increased 6.7 times, 11 months of 2021 – 2 times.
Consequently, banks remain highly profitable and efficient. The basis of this profitability in 2023 is significant interest income received primarily due to investments in government securities (government bonds and certificates of deposit) and moderate contributions to reserves.
According to the NBU, the net interest margin of banks for 10 months amounted to 8% (compared to 7% and 6% for the same periods of the previous two years, respectively).
The return on capital of the banking system (net profit to equity capital) for the 11 months of this year is 52.8% (versus 9.3% for the 11 months of 2022, 32.9% for the same period in 2021).
Background
Earlier, the Ministry of Finance wrote that according to the results of the third quarter of 2023, Privatbank earned the most (UAH 13.62 billion), Oschadbank was in second place (UAH 7.34 billion) and the recently nationalized bank was in third place Sense Bank (formerly Alfa Bank) (UAH 3.44 billion). It turns out that the most profitable banks in Ukraine belong to the state.
The top five banks with the largest net profit in the third quarter also included two banks with foreign capital – Raiffeisen Bank (UAH 3.02 billion) and Ukrsibbank (2 .1 billion UAH).
We would like to remind you that in early December the president signed a bill on taxation of excess profits of banks. The rate in 2023 is 50%, in 2024 – 25%.
The bill will provide additional revenue to the budget to finance military spending.
