According to preliminary data, solvent banks in Ukraine earned a net profit of UAH 103.69 billion last year, which is 24.6% higher than the figure for 2023. This result is primarily attributed to an increase in high-quality loans and investments in government bonds, as reported on the website of the National Bank of Ukraine (NBU) on Wednesday evening.
"The yield on loans stabilized in 2024; however, their volumes continued to grow. Over the year, the net hryvnia loan portfolio for businesses increased by 21%, while for individuals, it rose by almost 40%. An additional factor contributing to the banks' profitability for 2024 is the 35% increase in investments in government bonds over the year," the central bank provided.
According to NBU statistics, the hryvnia loan portfolio for businesses grew to UAH 385.39 billion, while for individuals, it reached UAH 221.36 billion. At the same time, investments in domestic debt securities increased to UAH 884.09 billion.
"Meanwhile, the cost of bank funding slightly decreased due to a reduction in market deposit rates in the first half of 2024, allowing banks to maintain a sufficiently high net interest margin," the regulator emphasized.
The net commission income of the banking system increased by 11.3% over the year. The NBU notes that in December 2024, for the first time since the beginning of the full-scale war, its monthly volume reached pre-war levels, amounting to UAH 6 billion. According to statistical data, the total net commission income of the system for 2025 was UAH 56.97 billion.
The NBU noted that the high quality of the loan portfolio resulted in a low level of provisions for credit risks. Consequently, the volume of provisions for the past year decreased almost twofold to UAH 9.55 billion.
It is noted that despite the continued increase in banks' administrative expenses, their operational efficiency remains high.
"By the end of 2024, only nine small banks out of 61 solvent ones were unprofitable, with a total loss of UAH 418 million. Mainly, these are institutions with ineffective business models and a number of unresolved issues," the NBU informed.
Banks paid UAH 83.72 billion in profit tax compared to UAH 76.64 billion in 2023. However, it was stated that the final amount of taxes paid will only be clear after the annual audit of the banks' reporting.
"Preliminary estimates indicate that the return on equity in the sector for 2024 is around 30%. Overall, the banking system remains profitable and sufficiently capitalized, maintaining its ability to lend to the economy," the regulator concluded.
At the same time, the agency points out that the second consecutive retrospective taxation of banks may affect the condition of certain financial institutions. According to the central bank, some of them risk violating capital adequacy requirements after the final calculation and reflection of the profit tax in their reporting.
"Maintaining profitability and implementing capitalization programs will allow financial institutions to restore their capital. However, uncertainty in tax policy may continue to hinder banks from more actively increasing their operations," the NBU summarized.