The official website of the National Bank of Ukraine reports that Ukraine's banking system lost UAH 53 billion in 2014. The figures cited are: from January to November 2014, Ukraine's banking system incurred UAH 22 billion 419 million in losses, while in December of last year, banks incurred UAH 30 billion 547 million in losses. Thus, Ukrainian banks suffered record losses in the history of Ukraine.
According to the regulator, the negative financial performance of Ukrainian banks in 2014 was caused by increased provisioning for potential losses from active operations. However, core banking operations remained profitable across the system.
The NBU reports that approximately 40% of the system's losses were generated by banks classified as insolvent and under temporary administration. Without bankrupt banks, the banking sector's losses would have amounted to UAH 33.1 billion.
As a reminder, according to the NBU, bank revenues in 2014 increased by 24,5% compared to 2013, reaching UAH 210.2 billion, while expenses increased by 57,2% to UAH 263.2 billion. The profit of the Ukrainian banking system in 2013 amounted to UAH 1.4 billion, which is 3,5 times lower than the profit figure for 2012.
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