The most unprofitable Ukrainian banks in June and a half-year period are named
The situation with the impact of the coronavirus crisis on the banking system is beginning to become clear. The National Bank published its financial reporting for the second quarter, and we can see which banks were most affected by credit defaults. After the COVID-19 quarantine began in Ukraine, benefits for the repayment of loans were introduced.
The largest government agencies and a number of banks with foreign capital among the most unprofitable banks in June 2020 are:
1. Privatbank had a loss of UAH 5.6 billion;
2. Ukreximbank - UAH 339 million;
3. OTP Bank - UAH 139 million;
4. Credit Agricole Bank - UAH 123 million;
5. Prominvestbank - UAH 93 million;
6. Citibank - UAH 86 million;
7. Pravex Bank - UAH 15 million;
8. Bank Arcada - UAH 11 million;
9. Accordbank - UAH 4.8 million;
10. BTA Bank - UAH 3.7 million.
Each bank has its causes of loss. For example, it is known that Citibank has collected a large portfolio of government bonds, and formed solid reserves on them. And Privatbank and Ukreximbank have large defaults on their loan portfolio for newly issued loans, as well as the old ones - even from the period of former president Poroshenko and the head of the National Bank Valeria Gontareva.
The list of the largest unprofitable banks in the first six months of 2020 looks a little different. Due to the fact that some structures had incomes at the beginning of the year and covered their shortfalls:
1. Ukreximbank showed a loss of UAH 1.9 billion;
2. Prominvestbank - UAH 219 million;
3. Bank Credit Dnipro - UAH 148 million;
4. Pravex Bank - UAH 79 million;
5. BTA Bank - UAH 43 million;
6. Bank Arcada - UAH 9.75 million;
7. Forward - UAH 9.5 million;
8. Unex Bank - UAH 8.3 million;
9. AP Bank - UAH 7.5 million;
10. UBRD - UAH 6 million.
Most banks started having serious financial problems only in the second quarter - after the start of the quarantine, which is confirmed by a fresh report from the National Bank. The regulator announced the first quarterly reduction of the general public’s loan portfolio (in hryvnia) since 2017 - by 5% as well as the decrease in the corporate loan portfolio:
• by 6.3% in hryvnia;
• by 3.5% in foreign currency.
As a result, business loans are not increasing, but, on the contrary, decreasing.
It is forcing banks to close their businesses. According to the National Bank, 334 bank branches were closed and 2.3 thousand bank employees were laid off in the second quarter of 2020.
In January-June, the banking system as a whole was profitable and showed earnings at the level of UAH 23 billion. But you need to understand that most of this amount fell on the two largest state-owned banks, which received interest on government bonds in their capital and revaluated their portfolios of securities as the hryvnia exchange rate changed. It amounts to UAH 17.6 billion. While the remaining 5.4 billion UAH of profit fell on the remaining 73 banks in the country.
The rating of the most profitable structures in the first six months of 2020 from the National Bank is as follows:
1. Privatbank earned UAH 14 billion:
2. Oschadbank - UAH 3.6 billion;
3. Raiffeisen Bank Aval - UAH 2.07 billion;
4. FUIB - UAH 1.25 billion;
5. Citibank - UAH 673 million;
6. Ukrsibbank - UAH 665 million;
7. OTP Bank - UAH 589 million;
8. Alfa-Bank - UAH 462 million;
9. Ukrgasbank - UAH 437 million;
10. Credit Agricole Bank - UAH 396 million.
At the same time, not all banks have fully formed reserves for problem assets. So far, the National Bank allows this to be done due to quarantine and credit benefits for borrowers. However, easing of regulations is about to stop, and then the financial results will definitely worsen. The situation will finally become clear after the filing of bank reports for the second half of 2020.
Andrey Pshenichnyi for dubinsky.pro