Ukrainian banks boost net profit nearly four-fold in 2023

MOSCOW. Feb 13 (Interfax) - Ukraine's solvent banks boosted unaudited net profit nearly four-fold to UAH 86.5 billion in 2023, Ukrainian media reported, citing a statement from the National Bank of Ukraine (NBU).

"Banks' operating income increased moderately by 15% compared to the previous year, and net operating profit before allowances for provisions rose by 19%. The increase in interest income from both highly liquid assets and lending remains the driver of sector income growth. Significantly lower contributions to reserves for losses from active operations, which dropped by 86% during the year, were the main factor behind the significant difference in profitability compared to 2022," the NBU said, according to whose data UAH 17 billion was allocated to form reserves in 2023.

The banking sector's return on capital was 31.6% as on January 1, 2024, versus 9.7% at the beginning of 2023.

As noted, only seven of 63 solvent banks were unprofitable at the end of last year, with losses totaling UAH 245 million.

The official exchange rate as on February 13, 2024, is UAH 37.89/$1.