Ukrainian state-owned banks cut profit to UAH 23 bln in 2020 – Finance Ministry
In 2020, Ukrainian state-owned banks reduced their profit to UAH 23.1 billion compared to UAH 34.2 billion in 2019.
According to the website of the Ministry of Finance, 61.3%, or UAH 25.3 billion of this amount was the profit of PrivatBank, and Ukreximbank ended the last year with a loss of UAH 5.6 billion.
At the beginning of 2021, compared to January 1, 2020, the loan portfolio of clients decreased by 1.1% (by UAH 2.5 billion), the Ministry of Finance said.
"This situation is primarily due to quarantine restrictions. In the fourth quarter [October-December] of 2020, there was a slight increase in lending [by 0.1% or UAH 200 million]," the ministry said.
At the same time, the volume of clients' funds showed an increase to UAH 735 billion compared to UAH 609 billion at the beginning of 2020, according to the data of the Ministry of Finance. In particular, the funds of individuals in state-owned banks reached UAH 409 billion compared to UAH 309 billion at the beginning of 2020.
"In 2020, their volume increased by 20.8% [by UAH 126.5 billion], in particular, funds of legal entities increased by 24.9% [by UAH 62.2 billion], funds of individuals – by 20.7% [by UAH 70.2 billion], " the Finance Ministry said, specifying that the growth in deposits of individuals was due to an increase in the amount of funds on demand.