Over the first ten months of 2016, 65 banks made a profit of UAH  9.6 billion, including  UAH 1.1 billion in profit earned by 66 banks in October.

As of 1 November 2016, 35 operating banks posted a total loss of UAH 22.2 billion, with losses incurred by six banks with foreign capital accounting for 83.4% of this amount.  In October, 34 banks posted losses of UAH 2.0 billion.

Over the first ten months of 2016, the operating banks’ total losses shrank 4.3 times (compared to the respective period of the previous year), amounting to UAH 12.6 billion. As of 1 November 2015, banks’ losses amounted to UAH 54.5 billion.

A decline in losses compared with the same period of the previous year was mostly due to a 60.4% reduction in allocations to loan loss provisions. However, over the first ten months of 2016, loan loss provisions  amounted to UAH 39.6 billion and remains the most significant factor behind the negative financial performance of the banking system as a whole.

Also, banks’ losses were due to an increase in administrative expenses and a six-fold reduction in trading income.

As of 1 November 2016, net interest income amounted to UAH 38.1 billion, which  was by 10.2% as compared with the respective period of the previous year. The decline in net interest income was attributed to a reduction in interest income. At the same time, there is a positive trend toward a steady decline in interest expenses due to lower cost of the banks’ resource base, primarily that of household funds.

Net fee and commission income as of the reporting date amounted UAH 20.4 billion, a 12.9% increase from a year earlier.