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8.0 Financial & capital markets 8.1 Bank sector overview
8.1.1 Earnings
Ukraine’s banks have returned to health and weathered the storm of war well thanks to the deep reforms of the sector that were completed before hostilities began in February 2022.
Ukrainian banks break five-year profitability records. During the first five months of the year, Ukrainian banks earned UAH 53.59B, 120% more than the corresponding period in 2021, according to Opendatabot. It is noted that this is the best result in at least the last five years and perhaps the most in Ukraine's entire history of independence. UAH 53.66B in profit was generated by 59 out of 65 operating banks. Six banks suffered losses totaling UAH 73.19M. All of the unprofitable banks are financial institutions with private capital. Most of the total profit, namely 59%, belongs to state banks with total earnings of UAH 31.43B. PrivatBank earned the largest share of these funds, UAH 25.48B, or 47.5% of total profits. All 15 banks with foreign capital earned UAH 15.01B, which is 70% more than the indicator from the same period in 2021. Banks with private capital (46 institutions) earned UAH 7.15B. This is 50% more than the corresponding period in 2021.
42 UKRAINE Country Report August 2023 www.intellinews.com