In 2024, Ukrainian banks’ profits grew significantly, exceeding UAH 175 billion in eleven months of the year, the highest figure since at least 2021. According to data from the National Bank of Ukraine and published by Opendatabot, banks’ pre-tax profits in January-November amounted to UAH 175.6 billion. This is 12% more than in 2023 and almost 2.5 times more than in 2022, when Ukrainian financial institutions were still feeling the effects of the full-scale Russian invasion.
Thanks to this, Ukrainian banks significantly increased their tax revenues: in just 11 months of 2024, they paid UAH 44.52 billion in profit tax to the budget. This is 1.7 times more than in the same period in 2023, and significantly exceeds the total tax revenues for the same months in the previous three years.
Record tax revenue was recorded in November 2024, when banks paid UAH 7.05 billion. A significant part of this amount, about 63% (UAH 4.47 billion), was provided by banks with foreign capital. This was due to the increase in the tax rate in the last quarter of 2024 from 25% to 50%.
However, despite the positive trends, 18% of banks turned out to be unprofitable. 11 financial institutions recorded losses totaling UAH 388 million for the year, which indicates certain problems in certain segments of the banking system.
It should be noted that the increase in the tax rate on banks was implemented in accordance with a law signed by President Volodymyr Zelensky back in 2023. It was expected that this would bring the country's budget an additional UAH 24-25 billion in 2023 and up to UAH 6-7 billion per year in the future. However, the increase in the tax rate is a temporary measure.
