Ukraines banking sector increases losses as war rages

div classBodysc17zpet90 cdBBJodivpKYIV Reuters – Ukraines banking system posted a net loss of 7.4 billion hryvnias 253 million in JanuaryApril, a rise from 0.16 billion hryvnias in JanuaryMarch, as Russia pressed on with its military offensive, central bank data showed on Tuesday.p

pIn April, banks had to transfer an additional 11.2 billion hryvnias of their earnings to reserves to cover possible future losses linked to the war. In March, banks transferred to reserves almost 15.8 billion hryvnias.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pRussia‘s invasion on Feb. 24 has harmed business activities, prevented many companies and individuals from servicing their loans and led to the banking system’s first losses since 2017.p

pThe central bank said the return on assets ratio of the banking system – an indicator of profitability – had worsened to minus 1.11 as of endApril from minus 0.03 as of endMarch. p

pThe central bank has said the war could cause Ukraines economy to contract by at least onethird in 2022 and drive up inflation to over 20.p

p1 29.2500 hryvniasp

p

pp Reporting by Natalia Zinets, Editing by Timothy Heritagep

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