In the second quarter, banks’ liquidity and operating profitability increased.
According to the National Bank, banks’ net assets increased by 3.3% in the second quarter and came close to their pre-war levels. Net hryvnia corporate loans increased by 5.3%, while foreign currency loans decreased by 7.2% in dollar terms. The growth of corporate hryvnia lending occurred exclusively at the expense of state banks, increasing about 30% per quarter. The net retail credit portfolio decreased by 11.1% in the second quarter. The amount of non-performing loans increased by 2.6% in the second quarter to 29.7%. Individual hryvnia fund amounts increased by 6.4% in foreign currency and decreased by 3.5% in dollar terms. Enterprise funds increased during the quarter by 4.3% in hryvnia and 14.4% in foreign currency. Reserve formation led to an increase in the banking sector’s losses, UAH 4.5B in the second quarter and UAH 4.6B since the beginning of the year. However, according to the results from the second quarter, the sector remained operationally profitable.