Ukrainian banks reduce net profit 21.9% in Sept 2024 Y-o-Y

MOSCOW. Nov 12 (Interfax) - Ukrainian banks reduced their net profit 21.9%, or by 3.24 billion hryvni, in September this year year-on-year to 11.55 billion hryvni, which is 7.4%, or 0.92 billion hryvni, lower than in August this year, Ukrainian media reported, citing data from the National Bank of Ukraine (NBU).

Although banks' revenues rose 14.2% in September year-on-year, or by 5.34 billion hryvni, expenditures increased much more significantly by 37.8% to 8.57 billion hryvni.

The main growth of expenditures was recorded under the following items, namely, income tax at 4.45 billion hryvni against 2.00 billion hryvni, other operating expenses at 1.89 billion hryvni against 0.31 billion hryvni, and general administrative expenses at 9.54 billion hryvni against 7.73 billion hryvni.

Additionally, although the banks lowered their allocations to reserves to 0.66 billion hryvni in September this year from 0.78 billion hryvni in August, they disbanded them by 0.83 billion hryvni in September 2023.

As for interest income and expenses, they grew by 11% and 4.6%, respectively. Hence, net interest income increased 14.3%, or by 2.48 billion hryvni, to 19.79 billion hryvni and supported the banks' profitability.

As for net fee and commission income, it surged 46.1%, or by 1.55 billion hryvni, to 4.93 billion hryvni.

At the same time, the outcome from revaluation and from purchase and sale operations fell 17.2% to 2.82 billion hryvni.

In total, for the first nine months of 2024, banks earned 380.52 billion hryvni of income and 117.63 billion hryvni of net profit, paying 35.15 billion hryvni of income tax.

In the first nine months of 2023, banks' income totaled 326.77 billion hryvni, net profit was 109.86 billion hryvni, and income tax was 19 billion hryvni.