Ukrainian banks earned 118 billion UAH in the first nine months, driven by lending and government bonds (OVDP).

In the first three quarters of 2024, solvent banks in Ukraine recorded a net profit of UAH 118 billion. The primary source of income was the increase in lending volumes and investments in government securities.

This was reported by the NBU.

Statistics indicate that since the beginning of the year, the hryvnia loan portfolio has grown by 14.5%, while the net portfolio has increased by 23.6%. Investments in government bonds rose by 21.1%. At the same time, there was a decrease in deposit rates, which helped maintain a high net interest margin.

An analysis of the banking sector reveals that out of 62 solvent banks, only eight small institutions incurred losses, totaling UAH 342 million. According to NBU estimates, these are banks with ineffective business models.

During the reporting period, banks paid UAH 35 billion in profit tax. The return on equity was 45.8%, which is lower than last year's figure (56.9%).

According to a new draft law, a 50% profit tax for banks is planned for 2024. Forecasts suggest this could lead to a decline in return on equity to 30%, which would affect the pace of capital accumulation and the banks' ability to lend to the economy.

For comparison: in 2023, the banking sector achieved a net profit of UAH 82.8 billion after paying UAH 76.2 billion in profit tax at a rate of 50%.

Background. Previously, Mind reported that banks approved loans amounting to UAH 11.7 billion for the restoration of energy infrastructure.