UCRA: 22 banks in Ukraine operating at a loss
2012-11-02 12:19:15
Twenty-two banks in Ukraine were operating at a loss in the first nine months of 2012, with 34 financial institutions reporting losses in the third quarter of the year, according to the Ukrainian Credit Rating Agency (UCRA).
"The activity of 34 banks was unprofitable in the third quarter of 2012 (22 banks were unprofitable in the first nine months of the year), although the overall financial performance of the [banking] system was positive. A reduction in the number of key components of operating income has significantly influenced the financial performance of the banking system, although the losses of a number of banks in the third quarter of the year were also triggered by operations on the clearing of balances," reads the statement.
Taking into account these trends, UCRA confirmed its forecast that was stated at the beginning of this year, regarding the overall level of bad loans of banks at the end of 2012: 25% for the portfolio of loans of legal entities and 35% - individuals.
"In August-September 2012, there was a reduction in the net interest income of the banking system, which was the result of an increase in interest rates on borrowed funds. Meanwhile, effective demand for bank loans was limited by the creditworthiness of borrowers and the acceptable value of loans for them," the agency said.
According to the National Bank of Ukraine (NBU), the biggest losses among banks in the first nine months of 2012 were reported at VAB Bank (UAH 379 million), Universal Bank (UAH 324 million), Swedbank (UAH 252 million), Erste Bank (UAH 238 million) and Pravex-Bank (UAH 207 million).
The most profitable banks were PrivatBank (UAH 991 million), VTB Bank (UAH 694 million), Oschadbank (UAH 411 million), ING Bank (UAH 328 million) and Citibank (UAH 299 million).