Despite the year-over-year growth, profits dipped 0.3% in the third quarter compared to the second.
Active lending was the main driver of profitability, with banks shifting a larger share of their assets into loans, which generate higher returns than other asset classes. Loan interest accounted for roughly 48% of total interest income in the third quarter, the regulator said.
Yields on government bonds also rose slightly, contributing to overall income.
Meanwhile, banks’ funding costs remained stable, helping push the sector’s net interest margin to 7.8%. Net interest income grew 16.6% year-over-year, and net fee and commission income increased 8.1% in the third quarter.
Net operating profit before provisions rose 4.1% year-over-year for the January–September period. The NBU noted that provisions have remained “moderate” for a second consecutive year.
“The profit generated supports the banks’ capital and thus their lending capacity,” the central bank said, adding that capital reserves across the sector remain generally sufficient based on this year’s stability assessment. However, the NBU noted that some financial institutions will still need to undergo capitalization or restructuring.
In 2024, Ukrainian banks reported UAH 91 billion ($2.19 billion) in net profit.