Solvent banks of Ukraine demonstrated a record level of profitability for January-October 2024, receiving 125.6 billion hryvnias in net profit after taxation. This indicator exceeds the result of the same period in 2023 by 2.3%.
According to the National Bank of Ukraine (NBU), the income of banks in the first ten months of 2024 increased by 15.2% and amounted to 420.7 billion hryvnias. A significant part of these revenues was provided by interest income, which increased by 17.0%, reaching 290.7 billion hryvnias.
At the same time, banks' expenses also increased, rising by 31.7% and reaching 295.1 billion hryvnias. Part of these costs is aimed at creating reserves for possible losses, the amount of which amounted to 5.6 billion hryvnias.
The National Bank notes that the key factors of high profitability of banks in 2024 were:
- Maintaining a high net interest margin , which is the main source of income;
- Almost zero deductions to reserves for active operations , which indicates effective management of credit risks.
It is worth mentioning that in 2023 PrivatBank set its own record, having received 72.8 billion hryvnias in profit before taxation. In the same year, the bank paid UAH 57 billion in income tax and dividends to the state, which became a significant contribution to the country's budget.
