Solvent banks get almost UAH 24B in net profit in H1 2020
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Ukraine's solvent banks received UAH 23.8 billion in net profit in the first half of 2020, or 23% down from the same period of 2019, according to a statement posted on the website of the National Bank of Ukraine (NBU).
"In January-June 2020, solvent banks received UAH 23.8 billion in net profit, which is 23% less than in the same period last year, when the banking sector earned more than UAH 31 billion," the statement said.

In the second quarter of 2020, the net financial result of banks amounted to UAH 7.7 billion, which is twice less than in the previous quarter and 2.4 times less compared to the second quarter of 2019.

The general decline in business activity during the coronavirus lockdown and falling demand for loans and banking services, as well as an increase in loan defaults, have a negative impact on banks' interest and commission income. For the first time in the past four years, the net commission income of banks this year decreased by 1.5%, to UAH 20.5 billion, compared to the same period last year. In the second quarter of 2020, it shrank by 10.2% year-on-year. The growth of net interest income slowed down to the lowest value in four years - 3.9% in the first half of the year and 1.1% in the second quarter of this year compared to the same period last year. At the same time, the amounts of net interest and commission income today are sufficient to cover the administrative expenses of most banks.

"Thanks to the efforts of the NBU, banks in good times have formed a margin of safety and today use the stock of capital to absorb credit losses. In order to further reduce the pressure on banks during this difficult period, it is necessary to give banks more certainty about the duration of payment holidays," First Deputy Governor of the NBU Kateryna Rozhkova said.

As of July 1, 2020, out of 75 solvent banks, 59 banks were profitable and received a net profit of UAH 26.3 billion, which covered the losses of 16 banks totaling UAH 2.5 billion.

Profit for the first half of the year was generated mainly by PrivatBank (UAH 14 billion or 59% of total profit) and a group of banks with foreign capital, except for Russian capital (UAH 5.6 billion).