PrivatBank ended 2022 with a net profit of UAH 30.25 billion in the conditions of martial law in Ukraine, lasting uncertainty and the need to support its own employees, customers and small and medium businesses. The data is preliminary, prior to the Bank’s annual financial statements verification by the external auditor.
The bank’s results demonstrate its efficiency, stress resistance, flexibility and adaptability. Such exceptional results are a reflection of the trust of our clients to the bank. It is worth mentioning that state-owned PrivatBank is a systemically important bank, a pillar for the financial system of Ukraine.
Since the first day of the war, PrivatBank has held the line of financial defense for Ukraine, ensuring the uninterrupted operation of electronic services, a network of branches and ATMs (in all settlements where there was no direct military threat). For example, out of more than 1,200 branches, an average of 80% were opened every day during the war. In addition, the bank managed to restore the network of ATMs and terminals at the level of 80% or more during the year. At the beginning of the war, the bank ensured the transfer of data to the cloud service by an international operator in a critically short time, which added confidence in the bank's work.
The focus on the support of own employees, the uninterrupted operation of services and security, and the comprehensive support of customers led to the strengthening of trust in the bank: during the year, more than 150,000 private individuals became our new customers. Taking care of its customers in the conditions of instability, the bank introduced temporarily the credit holidays, canceled interest on credit cards, commissions for trading companies and for cash withdrawals, as well as commissions for most types of payments.
PrivatBank proved to be a key player that provided support to the economy of Ukraine - primarily through the development of lending programs for agricultural producers and businesses that are critically important for Ukraine. During 2022, UAH 23.8 billion was issued to small and medium-sized businesses, which led to an increase in the net loan portfolio to legal entities by 58%.
In order to cover increased credit risks under war conditions, in 2022 PrivatBank formed reserves in the amount of over UAH 14.5 billion. Also, during the year, reserves were formed for expected losses as a result of hostilities: for the loss of cash and other assets due to the destruction of premises and ATMs.
In 2022, the bank remained operationally efficient, limiting all costs not related to business continuity and effectively managing operating costs. In the conditions of rising inflation, expenses increased by only 5% (UAH 0.9 billion), primarily due to personnel support, protection of information systems, and unique charitable programs aimed at strengthening defense capabilities, reducing the negative consequences of war, and supporting medical institutions of Ukraine.