Almost half of the profit banks have to pay as tax for the year 2023

In 2023, 63 Ukrainian banks made a pre-tax profit of 159.99 billion hryvnias. This is 1.9 times more than in 2021.

However, last year banks earned much less net profit — only 86.54 billion hryvnias. Nevertheless, it’s still 12% more than before the full-scale war. Back then, 71 banks earned a profit of 77.53 billion hryvnias.

Almost half of the banks’ profit must be paid as income tax according to the new law — 46% or 73.45 billion hryvnias. For comparison, in 2021, the tax was almost 12 times smaller: 6.37 billion hryvnias or 7.6% of the profit.

Overall, only 7 banks out of 63 ended 2023 with losses totaling 245 million hryvnias.

Currently, the top 10 banks have undergone minor changes: the ranking includes 5 banks with foreign capital, 4 state-owned banks, and 1 with private capital. Together, these 10 banks received 88% of the total profit — 75.94 billion hryvnias. And their income tax amounted to 63.18 billion hryvnias.

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State-owned banks

63% of the total profit of all banks is accounted for by 5 state-owned banks — 54.71 billion hryvnias. State-owned PrivatBank consistently leads in profit among all Ukrainian banks: 37.76 billion hryvnias for 2023. This is 8% more than in 2021.

Meanwhile, Oschadbank was able to increase its profit fourfold last year and earned 4.75 billion hryvnias in net profit. Also, Sens Bank, nationalized in 2023, was added to the state-owned banks.

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Foreign banks

14 banks with foreign capital earned 22.43 billion hryvnias. For comparison, almost the same amount was earned by 20 banks in this group just before the full-scale war.

The leader in profit last year was Raiffeisen: 4.78 billion hryvnias. Together with Ukrsibbank, which almost tripled its earnings compared to 2021, they received 40% of the total profit of the entire group.

Most foreign banks were able to increase their profits last year compared to 2021. Deutsche Bank showed the largest increase: a whopping 18 times.

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Private capital

Private banks are performing the worst this year. Last year, 44 banks with private capital earned 9.4 billion hryvnias in profit. This is 25% less than before the full-scale war began.

Almost 2/3 of the total profit of this group comes from 2 banks: PUMB, which is the group leader, with 3.95 billion hryvnias, which is 5% less than in 2021, and Universal Bank (Monobank), whose profit decreased by 1.6 times compared to 2021.

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