By KYIV. Nov 29 (Interfax-Ukraine) – Despite the reduction in the number of financial companies and pawnshops in July-September 2023, the volume of assets of the segment, on the contrary, increased by 5.8%, as noted in the review of the non-banking financial sector for November 2023 published on the website of the National Bank of Ukraine (NBU).
According to it, the volumes of financial services provided increased in all main types, with the exception of the unchanged volumes of factoring.
The regulator notes that the issuance of new loans to the population in January-September of this year decreased by 40% compared to the same period in 2021.
At the same time, the volume of financial leasing, which is mainly provided by legal entities – lessors, has been growing for the fifth quarter in a row. New leasing transactions were concluded for the purchase of passenger cars, agricultural equipment and trucks. Sources of financing for leasing are the lessors’ own capital and advance payments. The gradual restoration of the volume of basic financial services made it possible, based on the results of January-September 2023, to receive UAH 7.4 billion in profit, more than half of which was received by the state institution Ukrfinzhytlo, the operator of the eOselia program, the main income of which comes from interest payments on government bonds in capital. Some 72% of financial companies demonstrated profitability.
The NBU also notes that pawnshop activities continued to resume in the third quarter. The volume of assets and new loans increased slightly. Pawnshops’ revenues grew slowly, allowing them to make profits and improve profitability. Own capital has grown by 9% since the beginning of the year due to profits from operations.
According to the regulator, in the third quarter the number of providers of non-banking financial services decreased once again. Some 33 financial companies, eight credit unions, six pawnshops and four insurers were excluded from the register. Most financial institutions left the market, voluntarily giving up their licenses.
In addition, two financial companies were excluded from the register in accordance with the requirements of the law on payment services and, as payment institutions, were included in the payment infrastructure register.
In the third quarter, the volume of assets of representatives of non-banking financial services increased by 5.2% compared to the previous quarter and by 11.9% year-on-year. Assets grew in all market segments, but financial companies grew fastest.
The share of non-bank financial institutions in the assets of the financial sector, supervised by the NBU, increased by 0.2 percentage points over the quarter – up to 11.1%.
