NBU Council chief: Banking system more than halves profits in Jan-Feb

Chairman of the of the National Bank Council Bohdan Danylyshyn says the country's banking system received almost UAH 6.5 billion (US$234.7 million) in profits in January-February 2021, which was more than 50% down year-over-year (y-o-y).

"Ukraine banking system's profits in January-February 2021 stood at almost UAH 6.5 billion, which was more than 50% down from [the figure reported in] the corresponding period last year. This was the result of both the general crisis in the economy due to the COVID-19 epidemic and the negative revaluation of the cost of government domestic loan bonds, as well as lower interest rates on major transactions that generate banks' interest yield," he wrote on Facebook on March 23.

Read alsoNational Bank says about 100 insurers in Ukraine hide their real owners' namesAt the same time, he says, the return on banks' capital remains quite high compared to other countries, that is more than 18%, while the capital's adequacy exceeds 22% (the regulatory value is over 10%).

Background

Ukrainian banks received UAH 41.3 billion (US$1.5 billion) in net profit in 2020, which was 29% down against 2019, when the banking sector earned UAH 58.4 billion (US$2.1 billion).