Ukrainian banks' net profit falls by almost 23% in Jan-July

Ukrainian banks' net profit fell by 22.7% in January-July 2020 year-on-year (y-o-y), to UAH 28.4 billion (US$1 billion).

The banks' revenue over the period under review increased by 5.5% y-o-y, to UAH 149.1 billion (US$5.4 billion). Their spending in the seven months of 2020 totaled UAH 120.7 billion (US$4.4 billion), which was 15.3% up y-o-y, the National Bank of Ukraine (NBU) said on its website.

What is net profit

Net profit (also net income) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period, according to Wikipedia.

Ukrainian banks' net profit developments

Net profit of Ukrainian banks in January-June 2020 shrank by 23% y-o-y, to UAH 23.8 billion (US$866.1 million)

Read alsoUkraine needs second IMF tranche – NBU GovernorThe banking system's profit grew by 23.8% in the first quarter of 2020 y-o-y, to UAH 16 billion (US$582.2 million).

Ukraine's operating banks in 2019 posted a record high result for the second year in a row, having received UAH 59.6 billion, or US$2.2 billion, in profit. Their profit almost tripled against the figure posted in 2018. The most profitable were such solvent banks as PrivatBank (UAH 32.6 billion/US$1.2 billion), Raiffeisen Bank Aval (UAH 4.7 billion/US$171 million), PJSC First Ukrainian International Bank (FUIB), UkrSibbank (UAH 2.6 billion/US$94.6 million each), and OTP Bank (UAH 2.5 billion/US$91 million).

Ukraine's operating banks in 2018 received UAH 22.3 billion (US$811.5 million) in net profit, which was a historic maximum indicator. This was preceded by four unprofitable years for the banking system. So, the system posted UAH 26.5 billion (US$964.3 million) in loss in 2017, UAH 159.4 billion (US$5.8 billion) in 2016, UAH 66.6 billion (US$2.4 billion) in 2015, and UAH 52.7 billion (US$1.9 billion) in 2014.