The share of state-owned banks of net assets of the Ukrainian banking system grew by 0.4 percentage points (p.p.) in July-September 2017 year-over-year, to 56%, according to a report posted on the National Bank of Ukraine (NBU).

The pace is linked to the additional capitalization of PrivatBank (Kyiv).

Early 2017 the share of state-owned banks was 51%.

Assets of the banking system in the reporting period grew by 2.1%, to UAH 1.754 trillion, including a rise of 1.1% in assets in foreign currency, to UAH 738 billion.

Net assets over the period rose by 3.5%, to UAH 1.281 trillion, including a 3.5% rise in foreign currency, to UAH 498 billion.

Net credits issued to individuals and companies grew by 5.1% or UAH 26.1 billion. In the corporate segment, state-owned banks were most active. They mainly credited strategic structures. Foreign financial institutions stirred up crediting of companies with foreign investment.

The share of state-owned banks of public deposits in Q3 2017 grew by 0.4 p.p., to 62.7%. Early this year the share of state-owned banks was 59%.

The NBU said that Oschadbank contributed to growth of public deposits in Q3 2017, while other state-owned banks reduced their share of public deposits.

In addition, Oschadbank was the most active among all Ukrainian banks in attracting deposits in foreign currency.

The deposits of the banking system expanded by 2.7%, to UAH 847 billion, including a 5.7% rise in foreign currency, to UAH 389 billion. Public deposits grew by 1.1%, to UAH 447 billion, including a 2.2% rise in foreign currency, to UAH 229 billion.