- Ukrainian banking system received USD 60 mn of net profit in January 2018
The UX index decreased by 0.8% on Friday and the PFTS index was down by 0.1% (in UAH terms). The WIG-Ukraine index decreased by 0.3%. On the interbank exchange market, the UAH/USD was down by 0.2% to UAH 26.60 (mid price), according to Thomson Reuters. The official exchange rate reported by the NBU was UAH 26.67.
Ukrainian banking system received USD 60 mn of net profit in January 2018
As was reported by the National Bank of Ukraine (NBU) Ukraine’s banking system gained USD 60 mn (x4.8 y/y) of net profit for the first month of 2018, ending January 31, 2018. In January 2018, system’s total revenue decreased by 4.1% y/y to USD 514 mn, compared with the USD 536 mn of total income in January 2017. Particularly, banks gained USD 398 mn of interest income (+2.2% y/y compared with January 2017), USD 132 mn (+33.2% y/y) of commission income and USD 15 mn (-31.6% y/y) of other operating income. Total expenses of the banking system in January 2018 were down by 13.2% y/y to USD 455 mn, compared with USD 524 mn in January 2017. Interest expenses decreased by 15.5% y/y to USD 200 mn, while commission and other operating expenses increased by 67.2% y/y and 34.1% y/y to USD 38 mn and USD 24 mn respectively. Deductions for the creation of the reserve reduced by USD 60 mn (-52.7% y/y) to USD 54 mn.
Banking system’s positive result for the first month of 2018 was caused mostly by a significant cost reduction compared with the previous year’s beginning. In January 2017, banking system’s deductions for the reserve creation had a large share in its expense structure, due to toughening of the National Bank’s of Ukraine requirements, after the PrivatBank’s case. At this time, revenue’s drop, caused by a USD 37 mn loss (USD 18 mn of income in January 2017) from the asset’s revaluation and trading activities, was not as large as the expenses’ one, which led to the profitable year’s beginning for the whole banking system of Ukraine.