The Ukrainian banking sector demonstrates record profitability - NBU report.

Growth of the profitability of the banking system of Ukraine

In 2024, the banking system of Ukraine earned 103.7 billion UAH, which is 17.2 billion UAH more than in the previous year.

"The leader was the state-owned PrivatBank, which accounted for 39% of the total profit of the banking sector," notes the National Bank.

However, by the end of the year, banks faced challenges due to the increase in the corporate profit tax to 50%, which resulted in a total loss in the fourth quarter amounting to 13.5 billion UAH. Some important banks have not yet reflected this tax in their reporting.

The largest contribution to profitability comes from interest operations with government bonds and lending. Banks also actively increased their portfolios of government bonds to maintain profitability amid declining interest rates. Commission income also rose and even exceeded the pre-war figure in December.

Total assets of the banking sector increased by 16.2% over the year. A particularly noticeable increase is observed in investments in government bonds - by more than 30% over the year. However, investments in National Bank deposit certificates decreased by 11.6%.

Lending to the population also increased, with UAH loans rising by almost 40% over the year, particularly due to consumer lending. The mortgage market is developing thanks to the state program 'eOselya', which amounted to 24.1 billion UAH in the fourth quarter.

The National Bank believes that the mortgage market needs an expansion of products and improved regulation and state support.