State Banks Lost 22% of the Market in H1

PrivatBank’s net profit decreased by 17.3% to UAH 11.6 billion year-on-year in July. However, it was still five times more than the combined net profit of other state banks in Ukraine.

The net profit distribution in Ukraine’s bank sector in H1 was as follows: state banks accounted for 46%, foreign banks for 34%, and Ukrainian banks with private capital for 19%.

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It demonstrates significant shifts in the Ukrainian banking market compared to last year when the portion of state banks in the overall net profit was bigger—68% (foreign banks took 23% and Ukrainian private banks 9%).

However, state banks remain the key driver of profits in the banking sector. They became the most profitable among other banks in H1 2021, having made UAH 14 billion.

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Top 10 banks by profit

Month	January 2021	February	March	April	May	June
PrivatBank JSC CB	1,535,233	-225,633	1,075,221	3,661,230	2,644,852	2,920,597
Raiffeisen Bank JSC	380,358	378,347	328,766	447,892	334,626	463,705
SBERBANK JSC	130,901	86,438	237,396	179,417	1,306,129	158,764
FUIB JSC	338,065	338,068	325,153	321,855	328,954	332,599
UNIVERSAL BANK JSC	161,565	310,479	395,342	280,930	205,629	295,666
ALFA-BANK JSC	185,981	240,960	550,968	138,259	159,839	184,333
OTP BANK JSC	193,190	184,409	261,679	217,528	209,312	228,822
Ukreksimbank JSC	102,409	99,471	123,024	255,415	314,554	228,073
SITIBANK JSC	120,003	138,960	117,876	109,129	112,562	170,066
UKRHAZBANK JSC	80,615	97,636	65,807	69,518	120,723	292,130

Ukrainian banks raised their profits by almost one-quarter in H1 2021. According to the National Bank of Ukraine, they earned UAH 30 billion in H1 2021 versus UAH 23.8 billion in H1 2020. The profit of state banks slid 13.5% on the year. The banks of foreign banking groups posted almost two times bigger profit, while that of private banks rose 2.5 times.

To sum up, the banks of foreign banking groups and Ukrainian banks with private capital improved their profits amid the growth of the Ukrainian financial market and the shrinking portion of the state banks where PrivatBank is the main player.