Page 36 - UKRRptNov21

8.0 Financial & capital markets
My Ukraine country sheet with bank data here
https://docs.google.com/spreadsheets/d/1bMH5wBwqnIm_vgMxUi3yYkbBSPHhpqXBSJoylo7Fcko/edit#gid=1431539 905
NBU index page to get bank data here
https://bank.gov.ua/statistic/supervision-statist/data-supervision#1
8.1 Bank sector overview
The Ukrainian government will reduce its ownership of banks by 25%,
announced the Ministry of Finance. The main goal is to reduce the share of the state in the banking sector to below 25% in 2025. The partnership with IFC and the transformation processes carried out by Ukrgasbank to fulfill its strategic objectives significantly improve its attractiveness for further privatization.
The sector continues to be in profit earning UAH5,818mn in September.
Cumulatively the sector earned UAH51.4bn up by a third on the previous year still slightly ahead of 2019, the last year of strong growth.
The prudential ratios all remain healthy and the NPLs continue to fall - even the bad debt at PrivatBank is falling slowly, which remains by far the biggest headache in the sector.
Nevertheless, the ROE remains around 10%, which is decent but not very exciting. By contrast the ROE in the Russian banking sector is currently 20% and very healthy indeed.
From the loans business, retail loans have taken off strongly and is driving consumption, and by extension economic growth. Corporate lending remains more or less flat.
36 UKRAINE Country Report November 2021 www.intellinews.com