Over the first half of the year, banks increased their profits by 17%.

In the first six months of the year, solvent banks earned ₴79B in net profit, 17% more than the ₴67.6B profit obtained in the same period last year. Only seven small banks out of 62 solvent financial institutions were unprofitable, with a total loss of ₴171M.

The main drivers of profitability are maintaining a high net interest margin and almost zero deductions to reserves for losses from active operations. However, the profitability of the main types of bank assets decreased during the second quarter. The yield on NBU certificates of deposit fell the fastest, as banks reduced the volume of these investments. Market rates for OVDP and loans also decreased while their volumes increased. The banks maintained a sufficiently high net interest margin and increased their income thanks to increased assets.

The profitability of banks’ capital amounted to 48.4%, which is lower than the similar indicator from the first half of 2023, which was 56%. On the other hand, the amount of income taxes paid by banks is increasing. For the first half of the year, they amounted to ₴22B.