Ukrainian banks see 23.4% decline in net profit in 10 months: NBU

Ukrainian banks posted UAH 39.83 billion (US$1.4 billion) in net profit in January-October 2020, which was a 23.4% decline year-on-year (y-o-y).

This update was posted by the National Bank of Ukraine (NBU) on its website.

However, the NBU said, Ukrainian banks' revenue in January-October 2020 increased by 4% y-o-y, to UAH 209.25 billion (US$7.4 billion). Their expenses in the 10 months of 2020 stood at UAH 169.42 billion (US$5.97 billion), which was 13.7% more than in 2019.

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Reference on net profit

Net profit is a part of a company's profit that remains after the payment of after taxes, fees, deductions and other mandatory payments to the budget. Net profit is used to increase businesses' working capital, form funds and reserves, and reinvest in production.

Previous developments

• Ukrainian banks' net profit in January-June 2020 decreased by 23% y-o-y, to UAH 23.8 billion (US$839 million).
• Their net profit in January-July 2020 decreased by 22.7% y-o-y, to UAH 28.4 billion (US$1 billion).
• According to the NBU, the banking sector's profit in the first quarter of 2020 grew by 23.8% compared to the corresponding quarter of last year, to UAH 16 billion (US$564 million).
• Operating banks in Ukraine at the end of 2019 posted a positive financial result of UAH 59.6 billion (US$2.1 billion).
• In 2018, operating banks posted UAH 22.3 billion (US$786 million) in net profit, which was the highest indicator in Ukraine's history. This was preceded by four unprofitable years for the banking system with a loss of UAH 26.5 billion (US$934 million) in 2017, UAH 159.4 billion (US$5.62 billion) in 2016, UAH 66.6 billion (US$2.35 billion) in 2015, and UAH 52.7 billion (US$1.86 billion) in 2014.