Page 45 - UKRRptSept18

accounted for 55.7% vs. 56.4% at the beginning of April). A high rate of retail lending will continue in the third quarter of 2018
Hryvnia corporate loans issued by state-owned banks somewhat decreased and increased in foreign-owned and private banks in their stead. After a number of companies redeemed their corporate loans, the banks’ credit portfolio experienced a seasonal contraction, however in the third quarter of 2018 it is expected to expand.
In April-June, hryvnia inflows from households to the banking system continued to accelerate (+8.7% q/q and +21.4% y/y). State-owned banks continued to increase foreign currency deposits, while, generally in the system the share of foreign currency deposits decreased. In April-June, household deposits in banks grew by UAH17.2bn.
After the seasonal outflow at the beginning of the year, in April-June corporate deposits in banks grew by UAH6.4bn. Generally in April-June, corporate deposits in banks rose by 0.9% in hryvnia and 4.2% in foreign currency in US dollar equivalent. Mostly state monopolies were accountable for the increasing foreign currency deposits of businesses. The share of the NBU in banks’ funding reached an all-time low of 0.9%.
At the same time, interest rates on hryvnia retail deposits and retail loans hardly experienced any change in the second quarter of 2018. The banks tend to not differentiate much in deposit interest rates based on the term, i.e. interest rates on deposits in hryvnia for 6, 9 and 12 months amounted to about 14.1% per annum at the end of the quarter.
Interest rates on 12-month US dollar deposits were still at an all-time low of 3.3% per annum. Interest rates on new corporate loans rose by 0.6 pp, to 16.1% per annum.
Monetary and banking 2010 2011 2012 2013 2014 indicators
2015 2016
Jan-Sep 2017
Non-performing loans, USD bn 57.23 63.90 67.87 81.48 70.48 64.53 63.00 65.93
Non-performing loans ratio 14.8 15.2 29.6 14.5 15.9 25.6 30.4 56.4
Total deposits, USD bn 608.3 741.5 831.3 984.7 729.5 415.0 380.6 362.4
Loan-to-deposit ratio 175% 162% 143% 135% 152% 151% 127% 119%
Capital adequacy ratio 20.6 19.2 18.0 18.1 15.6 9.2 13.0 13.8
Liquid asset ratio 18.8 18.6 22.1 20.6 26.4 33.0 48.5 53
45 UKRAINE Country Report September 2018 www.intellinews.com