In January-through-July period 2014, the Ukrainian banking sector's performance was affected by losses incurred by the banks that have been declared insolvent and placed under provisional administration by the Deposit Guarantee Fund. Armed hostilities and temporary disruptions in the operation of financial institutions in Donetsk and Luhansk oblasts where the counter-terrorism operation is being conducted also weighed on the banking industry's performance.

In view of the above, the banking sector reported losses of UAH 2.0 billion in the first seven months of 2014. Excluding losses incurred by the banks placed under provisional administration, the banking system’s profit made UAH 3.2 billion.

In January-through-July period 2014, the income earned by the Ukrainian banks had surged by 30.8% y-o-y and reached UAH 121.4 billion, whereas their expenses had climbed by 35.7% y-o-y and amounted to UAH 123.4 billion.