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PrivatBank completed the third quarter of 2020 with a profit of UAH 21.3 billion. This was reported by the press service of the bank. According to the results of the first half of the year, the bank's profit amounted UAH 14.1 billion.
According to the press service, the increase in the bank's profit was primarily due to the growth of commission income. The resumption of business activity in the third quarter allowed PrivatBank to increase net commission income by 29% compared to the second quarter – up to UAH 13 billion in the first 9 months of the year. Net interest income remained at the level of the previous quarter and in the first 9 months of the year amounted UAH 15.9 billion, despite a significant reduction in interest rates on loans to small and medium-sized businesses.
In total, the bank received UAH 19.0 billion result from customer service and banking operations in the first 9 months of 2020.The rest of the profit is the result of macroeconomic and other factors. Thus, changes in the world economy and the economy of Ukraine led to an increase in the result of the fair value of the domestic government bonds, which were obtained as a contribution to the authorized capital of the bank during nationalization. UAH 18,4 billion revenue was recorded for 9 months as a result of this revaluation.
At the same time, this revaluation partially offsets the negative impact of exchange rate fluctuations, which caused losses of - UAH 7.5 billion for 9 months of 2020.
In the third quarter of 2020, the bank continued to create provisions for possible losses due to the coronavirus pandemic, however their major part was recognized in the first semester.