Ukrainian banks ended 2016 with a record loss for a quarter of a century - the NBU blames the bankruptcy of Privatbank
The Ukrainian banking system in 2016 suffered a historically high loss of 159 billion hryvnia, of which about 136 billion hryvnia were losses of Privatbank.
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This is stated on the NBU website.
The National Bank assumes that in 2017 the banking sector can achieve profitable activity (without taking into account the Privatbank factor).
“We expect that in 2017 the volume of contributions to reserves for active operations will significantly decrease, and this will enable the banking sector as a whole to return to profitable operations after three years of significant losses. We leave, of course, the Privatbank factor out of the equation. This is a bank that requires special attention and a special approach,” said Vitaly Vavrischuk, director of the financial stability department, at a briefing at the NBU.
We would like to remind you that back in January-September 2016, Privatbank declared profitable activities. Its profit after tax amounted to UAH 590,85 million.
However, as the Kiev economic publication Capital notes, “about 97% of Privat’s corporate portfolio consisted of insider loans, for which reserves were not created in full. This means that the actual volume of losses was artificially lowered.”
Ukrainian banks ended 2016 with a record loss in a quarter of a century – the NBU blames the bankruptcy of PrivatBank.