Ukrainian banks' operating losses reduce by more than threefold

"The drop in losses was solely due to the reduction in transfers to reserves under the banks' asset-side operations, since major banks had formed provisions based on the results of diagnostics in 2015," the statement read.

The regulator also reported that the banks' financial results prior to provisions and tax payments amounted to UAH 13.9 billion, a drop of 60% when compared with last year (UAH 34.4 billion).

"Major causes for the reduction of the banking system's performance were a further decline in revenues amid an increase in certain expenditure (interest and administrative costs)," the statement said.

According to the NBU, revenues of Ukrainian banks in January-July 2016 declined by 13% year-on-year (y-o-y) to UAH 101.6 billion. Thirty-three banks posted losses for a total amount of UAH 16.6 billion as of August 1, including 26 banks that incurred losses worth a total of UAH 1.1 billion in July. The regulator also stated that 68 banks made profits totaling UAH 7.4 billion.

Read alsoUkraine’s banks in anticipation of potential buyersAs UNIAN reported earlier, the aggregate loss of Ukraine's operating banks, excluding the insolvent ones, amounted to UAH 9.18 billion in the first half of 2016.

The Ukrainian banking system, excluding insolvent financial institutions, posted a record loss of UAH 66.6 billion in 2015. Seventy-one banks posted profits totaling UAH 5.2 billion in 2015.