In H1 2017, the banking system (banks that were solvent as of reporting date) posted a  net loss after tax of UAH 1.85 billion. In Q1 2017, the banking system posted a profit of UAH 4.1billion (after adjusting entries are made and posted  as of 15 May 2017).

The main factor behind weaker financials was a substantial  increase in provisioning in Q2 2017 to UAH 12.5 billion. CB PrivatBank PJSC and PROMINVESTBANK PJSC accounted for the bulk of the increase.

Losses incurred by CB PrivatBank PJSC and PROMINVESTBANK PJSC resulted in a net loss of the state-owened banks and banks with foreign capital. Thus, in H1 2017, the state-owned posted a total loss of UAH 1.8 billion (the profit net of losses incurred by CB PrivatBank PJSC was UAH 1.1 billion), while that of banks with foreign capital was UAH 1.1 billion (the profit net of losses incurred by PROMINVESTBANK PJSC was almost UAH 3.7 billion). The privately-owned banks posted a net profit of over UAH 1 billion during the period under review.

On the positive side, banks posted a 34% increase in net commission income and a 3.5% rise in net interest income, compared to the same period a year ago. The increase in net interest income was driven by a more rapid decline in interest expenses relative to interest income earned on banks’ operations with individual.

Thus, as of 1 July 2017, 70 banks out of 90 solvent banks reoported a net profit of UAH 8.22 billion, while 20 banks incurred a net loss of UAH 10.07 billion.