State-owned PrivatBank, based on the results of its work in the first quarter of 2024, received UAH 13.86 billion in net profit, which is 14% less than in the same period last year. This was reported by the bank's press service.
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The decrease in profit was affected by an increase in the tax rate for banks, as well as changes in macroeconomic conditions in both the domestic and international markets, the bank’s press service explained.
Privatbank’s profit in the first quarter before tax amounted to UAH 18.7 billion, tax for profit – UAH 4.8 billion.
“The partial release of loan provisions as a result of the high quality of the loan portfolio has a positive impact on the results of the 1st quarter of 2024. At the same time, the bank’s reinvestment of funds from redemption of government bonds (in foreign currency) into bonds with a longer term required additional reserves for these securities,” the message says.
In addition, the devaluation of the hryvnia in during the first quarter of 2024 caused a negative revaluation of the bank’s currency position, offset by a positive result of the revaluation of indexed government bonds. In general, revaluations affected the result in the amount of UAH 1.4 billion.
