December 15, 2022, 18:24

Due to the War, Ukrainian Banks Will Lose at Least 20% of Their Loan Portfolio, but They Are Operationally Profitable — Member of NBU Board

Credit risk is still key for banks. Financial institutions gradually began to recognize the losses already incurred and expected. Vasyl Furman, Member of NBU Board, told this during the briefing in Media Center Ukraine — Ukrinform.

“NBU estimates that banks will lose at least 20% of their loan portfolio due to the war and the economic crisis. The share of non-performing loans in the banking sector as of November 1 is 35.5% compared to March 1. The volume of non-performing loans in March–October increased by UAH 112 billion,” the expert said.

Vasyl Furman said that banks remain operationally profitable despite hostilities in the country.

“If one looks at the financial result of the banking system, solvent banks received UAH 11 billion in net profit in January–October 2022, compared to UAH 77 billion in January–October 2021. Since the beginning of the year, the banks have formed provisions in the amount of UAH 107 billion. The banks are operationally profitable. The banking system is ready for any challenges,” the Member of NBU Board said.

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