Data from the National Bank of Ukraine indicates that Ukrainian banks achieved profits last year that were more than 100 percent higher than before the start of Russian military operations. Additionally, they have almost entirely repaid their refinancing debts.
According to information from the Ukrainian business news journal, Ukrainian banks generated approximately 160 billion Ukrainian hryvnias in pre-tax profits in 2023, which is over 100 percent more than before the widespread Russian attacks began. This means the banks will need to pay a tax amounting to half of their total profits, exceeding 73 billion hryvnias.
Meanwhile, Ukrainian banks’ profits are still 12 percent higher than before the attacks began, with 71 banks earning 77.53 billion hryvnias in profits. Moreover, 88 percent of the total profit, amounting to 75.94 billion hryvnias, came from the profits of ten banks, with their income tax reaching 63.18 billion hryvnias.
For comparison, the total tax in 2021 was about one-twelfth of last year’s total tax, amounting to 6.37 billion hryvnias or 7.6 percent of the profit.
Overall, only seven out of 63 banks ended 2023 with losses totaling 245 million hryvnias.
Furthermore, banks’ debts for refinancing loans decreased by 35.66 billion hryvnias (or -93.5 percent) as of January 1, 2024, compared to January 1, 2023, according to data from the National Bank of Ukraine.
The situation in Ukraine has been marked by significant and tragic developments since the onset of the conflict with Russia. In early 2022, the largest deployment of Russian troops to its border with Belarus since the Cold War was observed, leading to failed negotiations between the United States, Russia, and European powers. Despite diplomatic efforts, President Putin ordered Russian troops into Ukraine, launching a full-scale invasion that targeted military assets and cities across the country. This invasion has been condemned internationally, with severe sanctions imposed by the U.S. and its allies against Russia.
The conflict has led to nearly 22,000 civilian casualties, with 5.1 million people internally displaced and 6.2 million fleeing Ukraine. The United Nations General Assembly saw a majority of its member states condemning Russia’s invasion, demanding an immediate withdrawal from Ukraine. The situation has also been complicated by cyberattacks targeting Ukrainian infrastructure, alongside the physical warfare.
Since the summer of 2022, the conflict has mainly been concentrated in Ukraine’s east and south, with Russian forces using advanced weaponry to devastate strategic locations. The war has had a significant impact on global food supplies, given Ukraine’s role as a major supplier of commodities to the World Food Program. Despite a grain deal between Russia and Ukraine to alleviate some of this pressure, the conflict’s effects continue to ripple through the global economy and humanitarian spheres.
The situation in Ukraine has been marked by significant and tragic developments since the onset of the conflict with Russia. In early 2022, the largest deployment of Russian troops to its border with Belarus since the Cold War was observed, leading to failed negotiations between the United States, Russia, and European powers. Despite diplomatic efforts, President Putin ordered Russian troops into Ukraine, launching a full-scale invasion that targeted military assets and cities across the country. This invasion has been condemned internationally, with severe sanctions imposed by the U.S. and its allies against Russia.
The conflict has led to nearly 22,000 civilian casualties, with 5.1 million people internally displaced and 6.2 million fleeing Ukraine. The United Nations General Assembly saw a majority of its member states condemning Russia’s invasion, demanding an immediate withdrawal from Ukraine. The situation has also been complicated by cyberattacks targeting Ukrainian infrastructure, alongside the physical warfare.
Since the summer of 2022, the conflict has mainly been concentrated in Ukraine’s east and south, with Russian forces using advanced weaponry to devastate strategic locations. The war has had a significant impact on global food supplies, given Ukraine’s role as a major supplier of commodities to the World Food Program. Despite a grain deal between Russia and Ukraine to alleviate some of this pressure, the conflict’s effects continue to ripple through the global economy and humanitarian spheres.
