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Annual results of state-owned Privatbank: UAH 26.8bn in tax, doubling of pre-tax profit

At the same time, the volume of retail deposits grew by 18%. 

Annual results of state-owned Privatbank: UAH 26.8bn in tax, doubling of pre-tax profit
Illustrative photo
Photo: Max Trebukhov

The country's largest bank has announced its results for last year. The bank's pre-tax profit reached UAH 72.8 billion, which is more than double the result of 2022, PrivatBank Insider reports.

In 2023, the bank continued to support the Ukrainian economy, increasing its net retail loan portfolio by 39% to over UAH 60 billion and its net business loan portfolio by 23% to over UAH 30 billion.

The high confidence of individuals and businesses in the bank and the stabilisation of the situation in the country allowed us to increase deposits by UAH 85 billion (18%).

This growth in business resulted in an increase in net interest income by UAH 16.7 billion. Another UAH 3.0 billion of net interest income growth was due to the interest rate policy implemented by the NBU in 2023. Net fee and commission income increased by 20% to UAH 24.4 billion. In the context of business growth, operating expenses increased by only 8%, remaining under close management control.

The quality of the loan portfolio is gradually improving, resulting in significant savings in provisioning costs. In 2023, they decreased by UAH 11.8 billion compared to 2022.

According to the results of 2023, PrivatBank will pay UAH 26.8 billion in income tax to the budget (another UAH 8.2 billion was prepaid in 2021-2022 along with dividends). The majority of the bank's net profit will be used to pay dividends, i.e. also to the state budget, according to the decision of the shareholder represented by the Ministry of Finance.

The bank has donated more than UAH 300 million to charity. 

Deputy Minister of Finance for European Integration Yuriy Draganchuk said: "The success of Privatbank has a direct effect on ensuring the financial stability of Ukraine and strengthening the country's economy in times of war, so the Ministry of Finance will continue to support the Bank's initiatives aimed at profitability and improvement of the financial system.” 

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