Losses at Ukraine`s operating banks decreased by more than threefold in January-July 2016 to UAH 9.3 billion compared with the same period last year, according to a post on the National Bank of Ukraine`s (NBU`s) website.
”The drop in losses was solely due to the reduction in transfers to reserves under the banks` asset-side operations, since major banks had formed provisions based on the results of diagnostics in 2015,” the statement read.
The regulator also reported that the banks` financial results prior to provisions and tax payments amounted to UAH 13.9 billion, a drop of 60% when compared with last year (UAH 34.4 billion).
”Major causes for the reduction of the banking system`s performance were a further decline in revenues amid an increase in certain expenditure (interest and administrative costs),” the statement said.
According to the NBU, revenues of Ukrainian banks in January-July 2016 declined by 13% year-on-year (y-o-y) to UAH 101.6 billion. Thirty-three banks posted losses for a total amount of UAH 16.6 billion as of August 1, including 26 banks that incurred losses worth a total of UAH 1.1 billion in July. The regulator also stated that 68 banks made profits totaling UAH 7.4 billion.
As UNIAN reported earlier, the aggregate loss of Ukraine`s operating banks, excluding the insolvent ones, amounted to UAH 9.18 billion in the first half of 2016.
The Ukrainian banking system, excluding insolvent financial institutions, posted a record loss of UAH 66.6 billion in 2015. Seventy-one banks posted profits totaling UAH 5.2 billion in 2015.