In the first quarter of 2024, solvent banks received UAH 40.5 billion in net profit, or 18% more than the corresponding figure for 2023. This was reported by the NBU press service.
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“The main factors for the growth of profitability in annual terms are an increase in interest income and significantly lower contributions to reserves for losses from active operations,” the regulator says in a statement.
OVDP
Over the last year, banks more actively financed the government's needs, increasing investments in government bonds. This affected the structure of interest income: the share of banks' income from government bonds for the year (from April 1, 2023 to April 1, 2024) increased by 6.7% to more than 26%.
Lending
< p>At the same time, banks are increasing lending: the volume of hryvnia business loans has been growing for three quarters in a row, retail loans for more than a year. From lending to legal entities and individuals, solvent banks received UAH 34 billion in interest income in the first quarter of 2024, which is 13% more than the figure for the same period in 2023.
“This is the result of stable growth in customer loan portfolios since the middle of last year of the year. However, the reduction in rates on new loans affected the decrease in the profitability of the corporate loan portfolio,” the NBU noted.
Other indicators
Other financial indicators of the banking system for the first quarter of 2024:
- operating income of banks amounted to UAH 78.7 billion (+10.3% year-on-year); return on capital of the banking sector as of April 1, 2024 – 51.1%; The amount of profit tax accrued by banks for the first quarter is UAH 10.3 billion.
As of April 1, only eight of 63 solvent banks were unprofitable with a total loss of UAH 111 million.
