Ukraine's National Bank head updates on the country's banking system status

National Bank head Andriy Pyshnyi said Ukraine's banking system remains profitable despite war losses.

"The banking system was profitable in 2023 and continues to be in 2024, despite the shock from 2022," Pyshnyi said. He noted that increased liquidity from war-related budget needs must be managed carefully to avoid inflation.

Banks, which saw an income tax rate increase to 25%, have stabilized and expanded their business loan portfolios by 20% over the past year. Pyshnyi highlighted that the banking sector’s net portfolio of business loans is now larger than before the invasion, with lending rates unchanged from 2019.

In the first quarter of 2024, the sector led in tax and fee contributions, and loan approvals for energy decentralization neared UAH 6 billion. The National Bank improved its 2024 inflation forecast to 8.6%, with inflation expected to rise gradually throughout the year.