In the first half of 2025, Ukrainian banks recorded UAH 100 billion in pre-tax profits. However, the market situation remains mixed, with one in five banks posting losses during this period.
State-owned banks, especially PrivatBank, generated the majority of profits, with PrivatBank accounting for 51% of the banking system's overall gains. Other top earners included Ukreximbank, Oshchadbank, Ukrgasbank, and Sense Bank. Altogether, state banks accounted for over 75% of the sector’s profits, and the government now controls more than half the market based on assets.
Experts highlight the risks of state monopoly in the sector and emphasize the importance of competition through privatization. Efforts to privatize Sense Bank and Ukrgasbank are ongoing, but the process is complicated by wartime conditions and risks for potential investors.
PrivatBank’s large share of non-performing assets limits its investment appeal, yet it remains crucial for the market and state budget. While the privatization of such major institutions is a hot topic, no final decisions have been made.
The leading foreign bank is Raiffeisen Bank, while PUMB is the most profitable private Ukrainian bank. There is a downward trend in profits among foreign and private banks, and the share of loss-making institutions has risen to 20%.
Banks’ main sources of income include government bonds (domestic loan bonds), transactions with the National Bank, lending (including government-backed programs), and commission-based services.
The principal structural challenge is the high National Bank base rate: a strict anti-inflationary policy complicates lending and increases public debt costs. Still, banks’ reserves remain strong, and the system is broadly stable.
The issue of further privatization and the government’s ongoing role remain unresolved. The development of the banking sector is crucial to the future of Ukraine's stock market and overall financial stability.
