Highlights for the week: Salaries, bank profits, international reserves and Fed and ECB rates

Johnson & Johnson split and held the largest IPO this year

If you bought Johnson & Johnson shares for $5 thousand. at the end of February 2013 and had held them until now, they would have received a total profit of about $13,570 due to the increase in the rising share price and dividend payments, the website for investors The Motley Fool calculated. But in the near future, the earnings of the owners of J&J shares may increase significantly — we’ll tell you why.

How will the salaries of Ukrainians grow in the coming years? Forecast of the NBU

The National Bank predicts that the average nominal salary in Ukraine in 2023 will grow by 21.9%, and the real (inflation-adjusted) by 3.7%.

Banks received 34 billion net profit in the first quarter – NBU

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. As of April 1, 2023, only five banks out of 65 solvent institutions were unprofitable with a total loss of UAH 40 million.

The ECB raised the key rate for the seventh time

The European Central Bank (ECB) raised the key rate by 25 basis points — from 3.5% to 3.75% — at a meeting on Thursday, May 4. This is the maximum rate since 2008. The ECB raised lending rates for the seventh time in a row.

Hryvnia under 20%, dollar under “0”: how banks plan to change deposit rates

Banks are moving deposit rates up, especially this is noticeable on time deposits for a period of 3 months. What prompted them to do this and whether it will affect the volume of deposit portfolios, the Ministry of Finance found out.

How to change Ukraine and what reforms Ukraine needs after the war (video)

In this video, financial expert Alexey Kozyrev talks with Valentin Krasnoperov, the founder of the educational initiative “The Last Capitalist” about the following: the economy of Ukraine after the collapse of the USSR, how the economy of the “red directors” collapsed, what we need to do in order for the economy to work properly, what reforms Ukraine needs after the war, the most necessary reforms and what will happen with the dollar exchange rate.

A record for the last 11 years: International reserves of Ukraine grew to $35.9 billion

As of May 1, 2023, according to preliminary data, international reserves amounted to $35.9 billion. This is an updated record level for the past 11 years. In April, reserves grew by 13% due to receipts from international partners, a further decrease in the volume of net sales of currency by the National Bank and moderate debt payments of the country in foreign currency.

The Fed raised the interest rate for the tenth time in a row

The Federal Reserve System (FED) of the USA increased the base rate range by 0.25 percentage points to 5-5.25% per annum. This is the highest rate in 16 years and the tenth increase in a row.

The NBU begins assessing the stability of the banking system: how many and which banks will be closed

The National Bank announced the launch of a sustainability assessment of the twenty largest banks. In fact, it will begin after May 5: by this time, banks must provide the regulator with all the necessary information. First of all, the NBU will assess the quality of loans previously issued by banks, the value/liquidity of collateral and the completeness of the reserves formed for them. What consequences for depositors and the banking market as a whole will have such an inspection, the Ministry of Finance will tell.

Owners of property destroyed as a result of the war were exempted from paying real estate tax

The President of Ukraine, Volodymyr Zelenskyi, signed Law No. 7632 on exemption from payment of real estate tax for real estate destroyed or damaged as a result of the war.

The new pension reform: who and how will pay pensions to Ukrainians

From January 1, 2024, all working Ukrainians under the age of 55 will be forced to pay the part of the ESR payable to savings accounts. This is one of the main points of the new pension reform, which the parliament plans to consider. The corresponding draft law (No. 9212) has already been registered in the Verkhovna Rada. Yury Boyko, a member of the National Commission for Securities and the Stock Market (NCSCFM), spoke about the second requirements of the project and their shortcomings.

Return of additional payments to the military in the rear: from whose pockets will they take 150 billion

Refund of surcharges in the amount of 30,000 hryvnia for the military has been put on hold. The decision of the deputies split public opinion. Supporters of the return of surcharges say that the work of defenders should be adequately paid. Opponents argue that there are no funds in the budget for salary increases. How much will the new-old military pay system cost the country and is there any money for it, the Ministry of Finance found out.

In Ukraine, taxes on the import of Starlink terminals and generators were returned

On May 1, 2023, the period of preferential import of goods for the restoration of the energy infrastructure of Ukraine ended, and from today, duties and VAT will have to be paid when importing them.

The Ministry of Finance has auctioned bonds worth 12 billion

At the auction on May 2, the Ministry of Finance of Ukraine placed military bonds worth UAH 12.01 billion equivalent, which is UAH 4.28 billion less than last week — UAH 16.29 billion.

Source: Ministry of Finance

Views: 21