In January-March 2022, Ukrainian banks showed a loss of UAH 160 million, in March – UAH 10.07 billion. The main reason is the formation of reserves for the expected damage from the consequences of the war.

This is discussed in the message of the National Bank.

As of April 1, out of 69 solvent banks, 44 banks were profitable and received a net profit of UAH 5.85 billion, 25 were unprofitable with a loss of UAH 6.01 billion.

• Net interest income fell by 17% y/y in March, while in January-February this figure grew by 35% y/y.
• Net fee and commission income declined 13% y/y in the first quarter due to a 58% y/y drop in March.
• Net operating income before provisions for the first quarter amounted to UAH 22.23 billion (UAH 13.69 billion in Q1 2021).
• The banking system showed losses in the first quarter due to significant volumes of accumulated reserves for expected losses due to the consequences of the war. Banks formed reserves for the quarter for UAH 21.57 billion, of which in March – for UAH 15.86 billion.

Since the beginning of a full-scale war in Ukraine, banks have introduced credit holidays and reduced commissions for using their services. This had a negative impact on interest and commission income of financial institutions.

Earlier, the NBU reported that the transition to the restoration of standard work and monetary policy after the end of martial law would be very gradual.

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