ua.depositphotos.com Net profit of Ukrainian banks in January-June 2020 decreased by 23% year-on-year, amounting to UAH 23.8 billion ($858.8 million), the National Bank of Ukraine reports. Profits of Ukrainian banks in January-June increased by 6.2% against the relevant period last year, up to UAH 128.6 billion ($4.64 billion). Expenditures over the six months of 2020 amounted to UAH 104.8 billion ($37.8 billion), which is 16.4% more than in 2019. The NBU report says in Q2 2020, net financial performance of banks amounted to UAH 7.7 billion ($277.8 million), which is half the figure reported in Q1 2020, and 58.3% lower against Q2 2019. The main reason was the early formation of schedule reserves for expected losses in the amount of UAH 13.1 billion ($472.7 million) per quarter, as provided for by international financial reporting standards. Read alsoNational Bank downgrades unemployment outlook "The general decline in business activity during quarantine and a drop in demand for loans and banking services, as well as an increase in non-payments on loans, negatively affect the banks&#39; interest and commission income. Thus, for the first time in four years, net commission income of banks this year decreased by 1.5%, to UAH 20.5 billion ($739.7 million), against the same period last year," reads the report. It is noted that the growth of net interest income has slowed down to its lowest in four years – to 3.9% in the H1 2020 and 1.1% in Q2 2020 on year. At the same time, the volumes of net interest and commission income are now sufficient to cover the administrative expenses of most banks. "Thanks to the efforts by the NBU, banks in favorable periods have formed a safety cushion and today they are using the capital reserve to absorb credit losses. In order to further reduce pressure on banks in this difficult period, it is necessary to give banks more certainty about the duration of credit holidays," said First Deputy NBU Governor Kateryna Rozhkova. The National Bank also reported that as of July 1, 2020, 59 banks of 75 solvent ones remained profitable and received a net profit of UAH 26.3 billion ($949 million), which covered the losses of 16 banks totaling UAH 2.5 billion ($90.2 million). The profit for the first half of the year was formed mainly by PrivatBank (UAH 14 billion ($505 million), or 59% of all profits) and a group of banks with foreign capital, except for the Russian one (UAH 5.6 billion, or $202 million)). As UNIAN reported earlier, according to the NBU, the banking sector&#39;s profit in Q1 2020 increased by 23.8% on year, amounting to UAH 16 billion ($577.3 million).