Page 58 - UKRRptAug22

of June. This is UAH 30.4B ($820M) more than a month earlier, the Fund's press service reported. Of the total, deposits in national currency amounted to UAH 581.8B and UAH 287.7B in foreign currency. The fund emphasized that during martial law in Ukraine and for three months after its end, 100% guarantees apply to the deposits of individuals in banks participating in the fund. After the end of the three-month period following the end of martial law, the maximum amount of guaranteed compensation will be UAH 600,000 ($16,000). As of July 1, 2022, the register of Guarantee Fund participants included 69 banks.
8.1.2 NPLs
The biggest threat to banks is the realisation of credit risk. According to our estimates, at least 20% of the loan portfolio will be lost.
The volume of non-performing loans in March - May increased by UAH 12.4 billion, correspondingly, the share of NPLs increased by 1.1 percentage points. to 27.6% as of June 1, but it is lower than at the beginning of the year ( 30% on January 1). Banks gradually began to recognize the deterioration of loan quality caused by the war. It was the need to form significant ( more than UAH 33 billion for March-May) reserves for expected losses that led to the loss of the banking sector, despite its operational profitability.
In general, we estimate that most banks have sufficient capital to cover losses from credit risk and a sufficient level of operating profitability to restore capital after passing through the deep phase of the current crisis. As of July 1, the regulatory capital adequacy ratio H2 is 17.16% at a regulatory value of 10%, the core capital adequacy ratio H3 is 11.4% at a regulatory value of 7%.
NPLs % of loan book
May 20
May 21
May 22
ratio of non-performing loans, %
49.34
39.57
27.64
incl. banks:
with state participation, of which:
65.07
56.61
45.03
PrivatBank
79.36
72.26
66.3
state banks ex-PrivatBank
51.62
43.76
27.56
Foreign owned
33.49
26.52
7.39
Privately owned
18.81
13.06
12.43
Insolvent
0
0
0
Source: NBU
58 UKRAINE Country Report XXXX 2018 www.intellinews.com