The country's largest bank has announced its results for the past year, which have a direct impact on strengthening the country's economy. The bank's profit before tax reached UAH 72.8 billion, which is more than double the result of 2022.
In 2023, the Bank continued to support the Ukrainian economy by increasing the net retail loan portfolio by 39% to over UAH 60 billion and its net business loan portfolio by 23% to over UAH 30 billion.
The high confidence of individuals and businesses in the bank and the stabilization of the situation in the country allowed to increase deposits by UAH 85 billion (18%).
This growth in business resulted in an increase in net interest income by UAH 16.7 billion. Another UAH 3.0 billion of net interest income growth is due to the interest rate policy implemented by the NBU in 2023. Net fees and commission income increased by 20% to UAH 24.4 billion. Amidst business growth, operating expenses increased by only 8%, remaining under close management control.
The quality of the loan portfolio is gradually improving, which leads to significant savings in provisioning costs. In 2023, they decreased by UAH 11.8 billion compared to 2022.
According to the results of 2023, PrivatBank in the nearest future will transfer to the budget UAH 26,8 billion of income tax (UAH 8,2 bln more were prepaid in 2021-2022 together with the dividends). The majority of the bank's net profit will be used to pay dividends by the decision of the shareholder represented by the Ministry of Finance, i.e. will also be transferred to the state budget.
We supported not only our clients but also Ukrainian society as a whole by donating over UAH 300 million to charity.
"The year 2023 brought many tragedies, but it was also a year of opportunities and business adapting to the challenges of war. PrivatBank continued to be operationally stable and with no interruption. I am proud of the business results we have achieved. The higher our results are, the more we pay back to the state in the form of taxes and dividends. At a time when the state needs funds for defense more than ever, we understand our great responsibility as a state-owned bank that is systematic for the country’s financial system," said Gerhard Boesch, CEO of PrivatBank.
"The success of PrivatBank has a direct effect on ensuring the financial stability of Ukraine and strengthening the state's economy under war conditions, therefore the Ministry of Finance will continue to support the Bank's initiatives aimed at profitability and improvement of the financial system. PrivatBank remains a leader not only among public sector banks, but also among all participants of the financial market of Ukraine. This testifies not only to the established effective management of the public sector of the economy and the coordinated work of the highly professional team of PrivatBank, but also to the unconditional trust of clients - businesses, institutions, and citizens. Trust in the bank, which provides uninterrupted and high-quality service regardless of the geography of the client's stay and despite the systematic shelling and hacking attacks of the enemy," said Deputy Minister of Finance of Ukraine for European Integration, Yuriy Draganchuk.