Ukrainian Banks Increasingly Profitable, Clearing the Way to Lending

The net profit of Ukrainian banks was valued at UAH 45.6 bln ($1.7 bln) in January-August 2021, which is UAH 13 bln ($0.48 bln) more than in the same period in 2020. This announcement which was posted by the NBU on its Telegram channel concluded that the 40% increase in profitability illustrates the healthy returns in the banking sector.

 NBU forecasts the key policy rate reduction in the second quarter of 2022. One of the main drivers of such inflation dynamics is the sustained high price level in the global commodity markets. Inflation in Ukraine’s MTPs also remains high, although in August there were signs of a slowdown. Raising the key policy rate to 8.5% in 2021 and rolling back the emergency monetary measures will be sufficient to ease inflationary pressures and return inflation to 5% in 2022 announced the NBU Monetary Policy Committee.

 Foreign direct investment growing in Ukraine. UkraineInvest has already received applications for almost $ 2 billion of investment, announced its CEO, Sergiy Tsivkach. In the first half of the year, foreign direct investments increased by $ 2.7 billion compared to the same period last year.

In January-July 2021 exports grew by 33.4%, with the market to the EU increasing by almost 50%. Significant growth is taking place most major sectors of the economy including the machine-building industry increased by almost 30%.
The President’s office estimates Ukraine’s GDP at +3.8 in 2021. The Deputy Head of the President’s Office Yulia Svyrydenko said: “We expect that a full-fledged economic recovery will take place during this and subsequent years. This year we forecast the growth [of GDP] at the level of 3.8%.” She noted a recovery in private consumption and external demand. The Ministry of Economy has confirmed its growth forecast for 2021 at 4.1%,
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