10.03.2017, 21:57
Ukrainian Banking System Shows Profitable Performance in January 2017
OREANDA-NEWS. In January 2017, solvent banks posted UAH 338 million in net profit, compared with UAH 890 million in net loss for the same period last year.
Banking profitability in January 2017 stemmed primarily from an increase of net interest income by 29.5% (year-over-year) to UAH 4,131 million, and net fee and commission income – by 24.8%, to UAH 2,078 million. These dynamics were enabled by lower funding costs, first of all, with regard to households deposits, as well as recovery of demand for banking services.
The banking system turn to profitability was also prompted by positive result from trade operations: January figure stood at UAH 484 million, compared with the negative result for the same period last year – UAH 1,841 million due to the effect of FX revaluation of securities. In addition, January 2017 saw growth in allocations for provisions by solvent banks by 2.45 times yoy – to UAH 3,112 million.
The number and share of loss-making banks has decreased significantly. Thus, as of 1 February 2017, performance of 76 banks out of 93 solvent banks was profitable with net earnings amounting to UAH 2.17 billion; 17 banks incurred loss for a total amount of UAH 1.84 billion. In January 2016, some 90 banks posted profit totaling UAH 1.61 billion, while 26 banks reported losses of UAH 2.50 billion.
Overall in 2016, 33 banks out of 96 solvent banks were operating in the red, according to the data as of 1 January 2017.
Profit in January was generated by a group of foreign (UAH +1.3 billion) and private (UAH +0.5 billion) banks against a loss of the group of state-owned banks (UAH -1.4 billion).
Banking profitability in January 2017 stemmed primarily from an increase of net interest income by 29.5% (year-over-year) to UAH 4,131 million, and net fee and commission income – by 24.8%, to UAH 2,078 million. These dynamics were enabled by lower funding costs, first of all, with regard to households deposits, as well as recovery of demand for banking services.
The banking system turn to profitability was also prompted by positive result from trade operations: January figure stood at UAH 484 million, compared with the negative result for the same period last year – UAH 1,841 million due to the effect of FX revaluation of securities. In addition, January 2017 saw growth in allocations for provisions by solvent banks by 2.45 times yoy – to UAH 3,112 million.
The number and share of loss-making banks has decreased significantly. Thus, as of 1 February 2017, performance of 76 banks out of 93 solvent banks was profitable with net earnings amounting to UAH 2.17 billion; 17 banks incurred loss for a total amount of UAH 1.84 billion. In January 2016, some 90 banks posted profit totaling UAH 1.61 billion, while 26 banks reported losses of UAH 2.50 billion.
Overall in 2016, 33 banks out of 96 solvent banks were operating in the red, according to the data as of 1 January 2017.
Profit in January was generated by a group of foreign (UAH +1.3 billion) and private (UAH +0.5 billion) banks against a loss of the group of state-owned banks (UAH -1.4 billion).
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