Page 43 - UKRRptJun21

8.0 Financial & capital markets 8.1 Bank sector overview
Ukraine’s banking sector profitability continued to improve in April following strong results in March as the sector recovers along with the economy.
Thanks to the NBU clean up of the sector in recent years, Ukraine’s banking sector weathered the coronacrisis remarkably well. The sector had been growing strongly at the start of 2020 and was on track to record its best results in years when the multiple shocks hit in March and April. While that hit profits and knocked them to below the 2019 levels after some initial collywobbles the sector continued to increase profits throughout the rest of the year, albeit at lower levels than in 2019.
The sector got off to a good start this year, but on a cumulative profit basis is still tracking the results of 2019 and hasn't returned to the potentially strong growth it was displaying at the start of 2020.
However, year-on-year comparisons are made confusing by the exceptionally strong months banks put in in January and February last year, where profits were strong and almost double the previous year respectively.
But as the year unfolds the banks seems to be returning to the strong growth they were enjoying in 2020. In March the NBU reports that almost all segments of the financial sector recorded significant, and some posted record, profits, except for credit unions that suffered losses due to the formation of reserves
43 UKRAINE Country Report XXXX 2018 www.intellinews.com