Ukrainian banks post net losses of $2.4 bln in Jan-July
KYIV. Aug 13 (Interfax) - Combined net losses in the Ukrainian banking system totaled 18.361 billion hryvni ($2.4 billion) in January-July 2009 compared to combined net profit of 6.2 billion hryvni in the same period of 2008, the National Bank said on its website.
The losses can be attributed to higher growth rates in banks' expenditures compared to income. Combined net losses totaled 4.04 billion hryvni in July.
Ukrainian banks boosted total income 44.7% to 84.468 billion hryvni in the seven months, while expenditures soared 93.4% to 102.829 billion hryvni.
"Deductions for provisions on active bank operations totaled 41.4 billion hryvni and accounted for the lion's share of spending, or 40%," the statement says.
The number of loss-making banks in Ukraine grew to 64 in the second quarter of 2009 from 41 in the first quarter. There were 184 banks working in Ukraine as of July 1.
The official exchange rate on August 13 was 7.7394 hryvni/$1.