During the first half of the year, Ukrainian banks generated record profits.

The National Bank of Ukraine reported that banking organizations earned UAH 67.6B ($1.85B) in six months, the National Bank of Ukraine reported. Net operating profit before deductions to reserves increased by 57% to UAH 87.4B, while the pace of deductions to reserves decreased by 92%. Since the beginning of the war, banks have formed UAH 103B in reserves for loans. The income tax calculated for the six months exceeded the corresponding annual indicator from the historically most profitable year, 2021.

The main factors for the sector’s profitability remain interest income growth, primarily from highly liquid assets and insignificant amounts of reserve formation. As of July 1, only eight banks out of 65 were unprofitable, with a total loss of UAH 112M. For comparison, a year ago, banks had losses of UAH 4.6B during the same period.