The National Bank published an overview of the banking sector, in which
it was noted that the net assets of Ukrainian banks increased by 18% YoY in
UAH-terms to UAH 2.35 trillion in 2022. Given the weak demand for loans, banks
mainly increased the volume of investments in the National Bank’s certificates
of deposit. The net corporate loan portfolio in hryvnia increased by only 0.5%
YoY in 2022, while the foreign currency loan portfolio decreased by 24% YoY.
The state support program “Affordable loans at 5-7-9% interest rate” remains
the main driver of hryvnia corporate lending. The volume of the net retail loan
portfolio in hryvnia decreased by 33% YoY last year. The main reason for the
reduction is the increase in provisions for credit losses. The banking sector,
despite significant deductions to reserves, received UAH 24.7bn in net profit
in 2022. Among individual banks, Raiffeisen Bank Ukraine posted a net profit of
UAH 1.5bn, and Credit Agricole Ukraine reported a rather marginal profit of UAH
31mn. There were very different financial results among state-owned banks, in
particular, UkrGasBank had a net loss of UAH 2.8bn, UkrExim had a net loss of
UAH 6.9bn, while Oschad posted a net profit of UAH 690mn, and PrivatBank showed
a net profit of UAH 30bn, mainly due to interest income from its
UAH-denominated government bonds in the portfolio. PrivatBank holds a total of
UAH 236bn in government bonds (accounting for 43% of the bank’s net assets).
The Raiffeisen Bank (BAVL) shares fell by 14% to 27 kopecks over the
week on the Ukrainian Exchange. In contrast, CentrEnergo (CEEN) rose by 12% to
UAH 3.20.
Among stocks of Ukrainian agricultural companies, performance was mixed.
MHP (MHPC) shares added 1.2% to USD 3.43, Kernel (KER) gained by 2.4% to PLN
18.9, while Agroton (AGT) declined by 0.6% to PLN 3.23.
On the currency front, the hryvnia edged up by 0.3% to 39.88 UAH/USD on
the OTC cash market. The hryvnia has strengthened by 1.8% from 40.60 UAH/USD
since the start of the year.
POLITICS AND ECONOMICS
- The IMF on Track to Discuss
Full-Fledged Financing Program for Ukraine
The National Bank of Ukraine has
opened a special fundraising account to support the Armed Forces of Ukraine.
Please find more at the National Bank’s official website under the link below:
www.bank.gov.ua
full report
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Dmitry Churin, Head of Research,
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