Banks received 34 billion net profit in the first quarter – NBU
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Solvent banks in the first quarter of 2023 received UAH 34 billion in net profit against UAH 152 million in loss in the first quarter of 2022. This was reported by the press service of the NBU.
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As of April 1, 2023, only five banks out of 65 solvent institutions were unprofitable with a total loss of UAH 40 million.
The main profitability factors
The main factors of the profitability of the sector are the growth of incomes as a result of the gradual resumption of banking activities and the relatively insignificant volumes of reserve formation. Banks increased their operating income by 48% year-on-year.
Interest income
Net interest income for the first quarter increased by 41% year-on-year. Despite a significant increase in interest expenses as a result of an increase in interest rates on deposits, interest income grew even more significantly.
Commission income
Net commission income increased by 20% compared to the result of the first quarter of 2022. The volume of banking services is being resumed with the gradual resumption of economic activity, including after the attacks on the energy infrastructure at the end of last year and the beginning of this year.
“Increasing the profitability of banks also contributes to the positive result of transactions on the purchase and sale of currency, which in the first quarter was 2.3 times higher in annual terms,” the message says.
In the first quarter of 2023, the net operating profit before allocations to reserves doubled year-on-year to UAH 45.9 billion.
Read also: Banks increased their cash turnover in the first quarter
The rate of credits in reserves due to active operations decreased by 82% compared to the indicators of the 1st quarter of the previous year, in particular, in reserves under loans — by 90%. In general, since the beginning of the full-scale invasion, banks have formed reserves for credit losses of UAH 108 billion.
The sector’s return on equity as of April 1, 2023 was 58% compared to “-” 0.25% a year ago. The profit tax calculated for the quarter exceeded the corresponding annual indicator of the historically most profitable year of 2021.
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News editor Roman Myronchuk writes on the following topics: Economy, finance, banks, cryptocurrencies, investments, technologies
Source: Ministry of Finance
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