Ukrainian banks have received 31 billion hryvnias (close to 1.1 billion euros) in net profits during the first six months of this year, nearly four times more compared with the corresponding period of 2018, Ukraine Business News has reported.
According to the National Bank of Ukraine (NBU), the high level of increase in the profitability of Ukraine’s banks is due to the fact that the banks’ net interest increased by 20 per cent to 39.3 billion hryvnias while their commission-related incomes grew by 17 per cent to 20.8 billion hryvnias.
The strong demand for retail loans and the high spread between the interest rates on the banks’ assets and liabilities in the retail sector were the main contributors to the interest income growth. The increase in commission income level was driven by an increase in non-cash payments and the rapid development of consumer lending, the NBU said in a statement.
“For the second year in a row, banks are making high profits, mainly due to the rapid development of consumer lending, which is growing by about 30 per cent year-on-year,” UBN wrote quoting NBU’s deputy governor Kateryna Rozhkova. “We estimate that in the medium term, high operating efficiency and profitability will continue,” she said.
The deputy NBU governor added that out of the 76 solvent Ukrainian banks, 66 were profitable as of July, 2019, while 63 out of the 77 solvent banks made profits at the end of 2018.