Ukrainian banks have recorded an influx of client funds - NBU.

Banks have recorded an influx of client funds - NBU

The National Bank of Ukraine reported that banks have recorded an influx of client funds. This is evidenced by the results of the NBU's quarterly survey on bank funding.

According to the NBU, in the second quarter, the volume of funds from households and corporations as well as wholesale funding increased. Financial institutions predict that growth will continue, except for wholesale funding, the volumes of which will decrease.

It is noted that the average cost of funding in the second quarter continued to decline. This was reported by the largest share of respondents in the entire history of surveys since the second quarter of 2021. The decline will continue in the next quarter as well.

In addition, the share of funding in foreign currency has decreased and, according to banks' expectations, will continue to decrease. The maturity of funding has slightly decreased for the third consecutive quarter, while in the second quarter this was reported by fewer financial institutions than before.

Also, the total capital volume of banks has increased over the past 12 months. Three-quarters of the respondents expect this trend to continue.

Profitability remains the determining factor for the increase in capital volume in the near future.