Ukrainian banks’ net profit has soared by almost 600%; financial institutions have earned more than ₴130B.

According to the results from 11 months of the year, banks’ net profit (after tax) amounted to ₴130.55B. In November alone, this number was ₴7.85B, reported the head of the Committee on Financial Issues, Danylo Hetmantsev.

He clarified that compared to the same period last year, banks’ net profit increased 570%, and compared to the first 11 months of 2021, it doubled. In November, banks’ profit growth slowed following increased deductions to reserves against possible losses. However, compared to last year, such deductions are 92% smaller.

Hetmantsev notes that banks remain highly profitable and operationally efficient. The basis of 2023’s return is significant interest income obtained primarily through risk-free investments in government securities (T-bills and certificates of deposit) and moderate deductions to reserves.

A new law providing for additional temporary taxation of bank profit has been introduced in Ukraine. In 2023, this rate will be 50%, and in 2024, it will be 25%.