The formation of reserves by PrivatBank stimulated the growth of the losses of the banking system in 2016 to UAH 159.4 billion, Economic Truth reports, according to the message of the regulator.

“For the remaining solvent banks, the allocations to provisions in 2016 versus the previous year significantly decreased. This positive trend led to the reduction of their cumulative losses 2.8 times up to UAH 24 bln from UAH 66.9 bln in 2015. In particular, the group of state banks significantly reduced the volumes of losses for 2016 – by UAH 21.5 billion”, according to the message.

As the regulator notes, other positive trends for the whole banking system includes the growth of the net interest income by 15% versus 2015 through the growth of interest revenue (by UAH 4.6 bln) against the reduction of interest expenses (by UAH 1.2 bln).

“It demonstrates the certain improvement of efficiency of bank activities within 2016. In addition, as per the results of the last year, there was some growth of the net commission revenue by 12% versus the results of 2015 thanks to the recovery of demand for banking services and rate raising”, according to the message.

In total, as per the results of 2016, out of 96 solvent banks as of January 1, 2017, 63 banks received profit, amounting to UAH 10.8 bln, 33 banks – losses in UAH 170.2 bln.

As per the results of 2015, out of 117 solvent banks as of January 1, 2016, 71 bank received the profit, amounting to UAH 5.2 bln, 46 banks incurred losses, amounting to UAH 71.8 bln.

In 2017, NBU is expecting the banking sector to reach profitability (not taking into account the factor of PrivatBank) due to the further reduction of allocations to provisions and more active growth of interest revenues due to the recovery of the lending of the real sector.

As reported, the National Bank released the bank report for 2016 - 31 institutions received the losses, amounting to UAH 169.29 bln.

62 institutions made profit, amounting to UAH 10.817 bln.