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   »  Annual report - 2007

Bank sector of Ukraine in 2007

Number of Banks in Ukraine in 2002-2007

In 2007 banking sector showed active growth by all indicators. As of the end of 2007 there were 173 banks in Ukraine. 2007 is charactarized by significant activity of foreign investors in Ukrainian banking market, in particular, number of banks with foreign capital increased to 47, 17 of which has 100% foreign banking capital.
 - number of operating banks   - banks with foreign capital   -banks with 100% foreign capital

   As in previous years, banking industry showed high growth rates by the main financial indicators, in particular total assets of Ukrainian banks amounted to UAH 617.6 billion, which is by 75% higher than those as of the beginning of the year; as of the end of 2007 liabilities of the banks made up UAH 528.3 billion, which is by 78% higher than those as of the beginning of the year; as of the end of 2007 banks` capital grew by UAH 69.9 billion (64.2%). Income for 2007 totaled UAH 7.1 billion, which is in 1.54 times higher than in 2006. The banks` return on assets made up 1.08%.
 - assets  - liabilities


Volume of Retail Loans and Deposits in 2002-2007 (UAH billion) In 2007 there was an active growth in the retail segment of banking sector. Retail lending had particularly high growth rates – volume of loans provided by the banks in 2007 grew almost twofold and amounted to UAH 155 billion. Growth of retail deposits was a bit lower of retail lending growth and totaled 54%, making up UAH 163.5 billion. Growth of volume of retail loans and deposits is mainly caused by the growth of Ukrainian population` wealth.
 
  - Loans to individuals (UAH billion)   - Retail deposits (UAH billion)


Average Interest Rate for Term Deposits and Consumer Price Index Negative occurrence in the deposit market in 2007 was the fact that actual deposit interest rate, both in domestic and foreign currency has become negative for the first time since 2004, in other words, consumer price index exceeded a term deposit interest rate.
  

 - nominal integrated interest rate for term deposits of individuals
 - nominal interest rate for term deposits of individuals in UAH
 - nominal interest rate for term deposits of individuals in foreign currency
 - CPI



Volume of corporate loans and deposits in 2002-2007 (UAH billion)


Growth rates in corporate banking were a bit lower than in retail segment of banking business – corporate deposits and loans grew by 53.9% and 62.9% respectively, making up UAH 115.6 billion and UAH 271.5 billion.
 
  - Corporate Lending   - Corporate Deposits


Income of Ukrainian Banks in 2002-2007 (UAH billion)


Key factor in the banking system efficiency is a financial result – banks` income. In 2007 an aggregate income of the banks amounted to UAH 7.1 billion, which is in 1.54 times higher than that in 2006.
  



Thus, in 2007 there were the same tendencies in banking sector as they were in previous years – banking sector remains one of the most successfully and dynamically developed sectors of Ukrainian economy.

 



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