Page 42 - bne IntelliNews Country Report: Ukraine Dec17

Monetary multiplier (eop M3/MB)
2.8
2.5
2.6
2.8
3
3
2.9
3
2.9
2.9
Bank loans, chg. yoy
72%
-2%
1%
10%
2%
12%
12%
-4%
2%
-3%
Bank deposits, chg. yoy
28%
-8%
26%
18%
16%
17%
5%
4%
11%
15%
Loan-to-deposit ratio
205%
219%
175%
162%
142%
136%
151%
137%
126%
110%
Source: SP Advisors
8.1.1 Earnings 8.1.2 Loans
In September for the first time in three years the banking sector reported a profit of UAH3.4bn ($126mn) versus UAH158bn ($5.9bn) in losses the year before.
The loan portfolio of Ukraine’s largest banks also increased by UAH20bn for businesses and UAH7.8bn for individuals since January.
Ukraine’s bank lending kept recovering in October . The total hryvnia deposits at Ukrainian banks increased by 0.3% m/m (+5.6% YTD) in October, with F/X deposits down 1.8% m/m, but up +2.7% YTD.
The banking sector is still not out of the woods, but the danger of a systemic crisis is receding as all the good work put into restructuring the sector begins to bear fruit, bolstered by rising income levels and consumption.
The outstanding hryvnia loans inched up by 0.9% m/m (+8.9% YTD) while F/X lending increased by 1.3% m/m, remaining down 9.7% YTD, according to the National Bank of Ukraine (NBU).
“The pace of hryvnia lending somewhat decelerated in October, with corporate loans slowing to +0.4% m/m (+6.3% YTD) after averaging +1.6% m/m in June-September. At the same time, corporate loans in foreign currency increased by 1.8% m/m (still -8.5% YTD),” Dragon Capital said in a note. “The hryvnia retail loan book expanded by 3.0% m/m in October (+24% YTD), boosted by ongoing growth in consumer finance products. F/X loans continued
42 UKRAINE Country Report December 2017 www.intellinews.com