Ukrainian banks’ 2023 profits are only 14% of last year’s.

For the first nine months of the year, solvent banks earned UAH 7.4B in net profit, compared to UAH 51.4B for the corresponding period in 2022. The sector’s return on capital was 4.3% compared to 32.1% a year ago, the National Bank noted. The regulator explained these dynamics by the increase in reserves for incurred and expected losses because of the war. Since the beginning of the year, banks have accumulated reserves in the amount of UAH 99B. The NBU also notes that demand for banking services is gradually recovering from the shock of the war’s onset but remains low compared to last year. However, net operating profit before deductions for reserves increased by 78% YoY in the nine full months of 2022. As of October 1, out of 67 solvent banks, 44 were profitable and had a net profit of UAH 25.6B, and 23 were unprofitable, with a loss of UAH 18.2B.