Page 44 - UKRRptSept18

In the third auction during the week, demand again exceeded the $50mn the NBU was offering.
As a consequence, roughly $0.2bn was removed from the international reserves during only one week using only one tool.
8.0 Financial & capital markets 8.1 Bank sector overview
The Ukrainian banking sector made a net profit of UAH8.3bn ($305mn) in January-June, according to National Bank of Ukraine's (NBU's) August banking sector review.
The banking sector reported a moderate loss of UAH400mn in April-June due to the raising of additional provisioning by one large bank in April-June. The regulator did not provide the bank's name. Aside from this bank, the financial result of solvent banks in the second quarter accounted for UAH6.8bn.
"Retail lending and fee and commission income continued to drive operating income. No sufficient provisioning is expected in January-June, and the sector will be profitable as of the year-end," the report reads.
According to the regulator, the nation's banks continued active lending to households. Primarily, they issued consumer loans to meet current needs. During this period, net hryvnia retail loans increased by 7.4% or 39.2% year-on-year.
The active issuing of new loans contributed to a dollarisation decrease of the retail portfolio and a reduction of non-performing loans in banks’ portfolios in the system as a whole (the share of non-performing loans by the end of June
44 UKRAINE Country Report September 2018 www.intellinews.com