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State banks are displacing their competitors: How much did financial institutions earn in three quarters of the year?

PrivatBank increased its six-month net profit by almost 400%.

The building of the main office of a large Ukrainian Privatbank.

After paying taxes, 62 Ukrainian banks generated ₴117.63B ($2.8B) in profit for the first nine months of the year. Even though the banking sector’s tax rate increased significantly this year, total profit is 7% more than last year (₴109.85B).

State banks produced 63% of the profit among all financial institutions. This is mainly due to PrivatBank’s earnings – ₴48.35B, or 41% of total profit of all banks. Over the year, Privat’s profit grew by 11%. In September, another Ukrainian bank came under state ownership, Motor Bank.

Banks with foreign capital account for 23% of the total profit, ₴27.32B. Raiffeisen remains the leader in this group with ₴6.15B in profit.

Private banks earned ₴16.25B in profit, with their profit increasing by 22% this year. A third of the group’s earnings are accounted for by PUMB – ₴5.18B (-9%). The largest increase in profit among all banks occurred at MTB Bank, jumping by 1,200% to ₴603.59M.

 

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