By KYIV. Nov 30 (Interfax-Ukraine) – The net profit of solvent banks for January-October 2023 reached UAH 122.7 billion, while for the same period in 2022 this figure amounted to only UAH 10.9 billion, according to data from the National Bank of Ukraine (NBU).
According to the NBU, the total income of financial institutions for 10 months increased by 27.3% compared to the same period last year, including net interest income increased by 36.5% – to UAH 164.24 billion, while net commission income increased by 3.8%, to UAH 41.4 billion.
At the end of nine months, the growth rate was higher: total income – 28.1%, including net interest – 38.7%, net commissions – 5.4%, since in October of this year compared to October last, net interest income increased by 20.6%, while net commissions decreased by 7.4%.
The share of banks’ interest income in the overall structure continued to grow and increased by 0.2 percentage points in October, reaching 68.1%, while in the comparable period last year it was at 60.1%.
Meanwhile, the share of commissions decreased to 21.7% from 23.7% in 2022, as did income from foreign exchange transactions due to the stability of the hryvnia exchange rate – to 7% from 13.3%.
Another factor contributing to the growth of profits was a significant reduction in contributions to reserves – by 21.8 times, to UAH 4.9 billion.
According to NBU data, in October the net profit of banks decreased to UAH 12.8 billion from UAH 14.8 billion in September, while remaining higher than the August figure – UAH 11.9 billion. Banks ended October last year with a profit of UAH 3.6 billion.
Banks paid UAH 22.05 billion in profit tax for 10 months of this year.
As reported, last week the Rada increased the tax on bank profits this year from 18% to 50%, and for subsequent years – to 25%.
