Ukrainian solvent banks in January 2017 received UAH 338 million in net profit against UAH 890 million in net loss year-over-year (y-o-y), according to the National Bank of Ukraine (NBU) website.
Banking profitability in January 2017 stemmed primarily from an increase of net interest income by 29.5% y-o-y (to UAH 4.131 million, and net fee and commission income – by 24.8%, to UAH 2.078 million, NBU reports.
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, the NBU said.
At the same time, January 2017 saw growth in allocations for provisions by solvent banks by 2.5 times y-o-y, to UAH 3.112 million.
It is also reported that in January, performance of 76 banks was profitable with net earnings amounting to UAH 2.17 billion, while 17 banks incurred loss totaling UAH 1.84 billion.
As UNIAN reported, the banking system of Ukraine in 2016 updated the historical maximum for losses, recording a negative result at UAH 159 billion, according to the preliminary report of financial institutions before its confirmation by annual audit.
The total annual loss of the banking system, including both operating and insolvent banks, amounted to UAH 160.143 billion.
The previous record loss of Ukrainian banking system was recorded in 2015, when the negative financial result of operating banks stood at UAH 66.6 billion.