Ukraine's banking sector earns all time high cumulative profits in 8M23, but month on month, earnings growth slows a little

Ukraine's banking sector earns all time high cumulative profits in 8M23, but month on month, earnings growth slows a little
Ukraine's banking sector earned an all time high cumulative profit of $2.5bn in 8M23, but month on month the earnings growth slowed a little due to provisions. / bne IntelliNews
By bne IntelliNews September 27, 2023

Ukrainian banks continued to earn strong profits in the first eight months of 2023, recording a profit of UAH 95.1bn ($2.5bn), according to National Bank of Ukraine (NBU) data, NV reported on September 27.

This figure was a whopping 11.3 times higher than the earnings for the same period in 2022, which amounted to UAH 8.4bn ($226mn). (cumulative chart).

On a month-on-month basis the rate of earnings growth slowed somewhat to UAH11,922mn in August from UAH15,530mn, in July, the best result this year. (monthly chart)

The strong performance represents an all-time high in Ukrainian banking history according to the NBU. Prior to this, the highest net profit for the first eight months of a year was seen in the pre-war year of 2021, with UAH45.6bn ($1.2bn), surpassing the figures of UAH 32.6bn ($878mn) in 2020, and UAH 44.3bn ($1.2bn) in 2019.

The slow down month-on-month in August was the fifth-highest monthly figure for the year in terms of profit.

The net interest income of Ukrainian banks for the first eight months of 2023 reached UAH 129.3bn, a notable increase of 40.8% compared to the same period in the previous year. Additionally, net commission income amounted to UAH 33.4bn ($900mn), marking a 14.1% rise.

When compared to July, net interest income increased by only 1%, reaching UAH 17.91bn ($482mn), while net commission income grew by 2.1%, totalling UAH 3.92bn ($106mn).

The decrease in profits in August can be attributed to several factors, including a 5.3-fold increase in provisions, reaching UAH 1.62bn ($44mn), a 24.2% rise in other operating expenses, totalling UAH 1.47bn ($40mn), and a 37.8% increase in income tax, amounting to UAH 2.65bn ($71mn).

In total, banking reserve contributions for the first eight months of 2023 amounted to UAH 6.5bn ($175mn), whereas during the same period in the previous year they were at UAH 89.4bn ($2.4bn).

Read in IntelliNews Pro
Get IntelliNews Pro

Related Content

Czech PMI stays low in November

COMMENT: Turkish banks must embrace ecosystems

Croatia’s Fortenova to get rid of sanctioned Russian shareholders in €660mn deal

Data

Turkey releases official November inflation slightly up at 62% y/y

Independent group ENAG calculates 129% y/y.

Low base and agriculture lift Hungary out of technical recession in Q3

Hungary’s economy grew 0.9% quarter-on-quarter in the third quarter, after four consecutive months of contraction.

Czech PMI stays low in November

Czech manufacturing PMI data from S&P Global market intelligence company posted 43.2 in November.

Polish PMI rises in November to open way for recovery at year’s end

Poland's Purchasing Managers' Index grew 4.5 points to 48.7 in November.

Putin's approval rating up to 85% in November, Russians happy with the country's direction

According to the latest polls from the Levada Centre, Russian President Vladimir Putin's approval rating rose three percentage points in November to 85%, and disapproval slid down two points to 13%.

Turkey releases official November inflation slightly up at 62% y/y
7 hours ago
Low base and agriculture lift Hungary out of technical recession in Q3
15 hours ago
Czech PMI stays low in November
15 hours ago
Polish PMI rises in November to open way for recovery at year’s end
15 hours ago
Putin's approval rating up to 85% in November, Russians happy with the country's direction
1 day ago

Follow Us On

Most Read

  1. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    8 days ago
  2. Armenia marks new era with French military purchases
    6 days ago
  3. Turkey equipping Moscow’s war machine, data shows
    7 days ago
  4. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  5. Lavrov confirms Ukraine war peace deal reached last April, but then abandoned
    2 months ago
  1. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  2. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    8 days ago
  3. Russia overtakes Germany to become fifth biggest economy in the world in GDP on a PPP basis
    3 months ago
  4. Armenia marks new era with French military purchases
    6 days ago
  5. Lavrov confirms Ukraine war peace deal reached last April, but then abandoned
    2 months ago

Reports

SELECT `n`.`nid` AS `id`, `n`.`title`, 'bne IntelliNews' AS authors, 'bne IntelliNews' AS bylines, `wc`.`field_website_callout_value` AS `summary`, `smc`.`field_social_media_callout_value` AS `social`, `pd`.`published_at` AS `date`, `p`.`field_publication__tid` AS `publication_id`, `fm`.`uri` AS `image`, `fspcaption`.`field_story_photo_caption_value` AS `image_credit`, `fspcredit`.`field_story_photo_credit_value` AS `image_author`, `ws`.`field_website_sections_tid` AS `section_id`, `fdfs`.`field_subject_tid` AS `subject_id`, `db`.`body_value` AS `body`, `fm2`.`uri` AS `pdf`, `et`.`field_enable_tracking_value` AS `tracking`, `ht`.`field_head_tags_value` AS `headTags`, `bt`.`field_body_tags_value` AS `bodyTags` FROM `node` AS `n` LEFT JOIN `field_data_field_website_callout` AS `wc` ON wc.entity_id = n.nid LEFT JOIN `field_data_field_social_media_callout` AS `smc` ON smc.entity_id = n.nid LEFT JOIN `publication_date` AS `pd` ON pd.nid = n.nid LEFT JOIN `field_data_field_publication_` AS `p` ON p.entity_id = n.nid LEFT JOIN `field_data_field_story_picture` AS `sp` ON sp.entity_id = n.nid LEFT JOIN `file_managed` AS `fm` ON fm.fid = sp.field_story_picture_fid LEFT JOIN `field_data_field_story_photo_caption` AS `fspcaption` ON fspcaption.entity_id = n.nid LEFT JOIN `field_data_field_story_photo_credit` AS `fspcredit` ON fspcredit.entity_id = n.nid LEFT JOIN `workflow_node` AS `wn` ON wn.nid = n.nid LEFT JOIN `field_data_field_website_sections` AS `ws` ON ws.entity_id = n.nid LEFT JOIN `field_data_field_subject` AS `fdfs` ON fdfs.entity_id = n.nid LEFT JOIN `field_data_body` AS `db` ON db.entity_id = n.nid LEFT JOIN `field_data_field_file` AS `ff` ON ff.entity_id = n.nid LEFT JOIN `file_managed` AS `fm2` ON fm2.fid = ff.field_file_fid LEFT JOIN `field_data_field_enable_tracking` AS `et` ON et.entity_id = n.nid LEFT JOIN `field_data_field_head_tags` AS `ht` ON ht.entity_id = n.nid LEFT JOIN `field_data_field_body_tags` AS `bt` ON bt.entity_id = n.nid WHERE (n.status = 1) AND (n.type = 'article') AND (n.nid = 294473) AND (wn.sid= 3) AND (p.field_publication__tid = '1346') LIMIT 1
Dismiss