trending Market Intelligence /marketintelligence/en/news-insights/trending/j8bsODoxKMJjuzIN4gCa6A2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Fitch: Ukraine's banking sector could swing to profit in 2018

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory

Fitch: Ukraine's banking sector could swing to profit in 2018

The Ukrainian banking sector could become marginally profitable in 2018 thanks to falling funding costs and recovering GDP growth, although the profitability of local banks will remain weaker compared with other countries in Central and Eastern Europe and the Commonwealth of Independent States grouping of former Soviet republics, Fitch Ratings said Dec. 6.

With the exclusion of insolvent lenders, the Ukrainian banking sector posted a positive result for the first nine months of 2017, with banks seeing a small growth in lending after a period of deleveraging. The overall return on average equity of the entire sector was negative 2.7% in the first nine months, compared to negative 132% in 2016.

Loan growth is expected to be in single digits in 2018, constrained by continuously high credit costs and large provisioning needs, as well as the moderate capital buffers of local lenders, the news agency noted.

The value of unreserved nonperforming loans in the sector stood at 113 billion Ukrainian hryvnia at the end of the third quarter, equivalent to 2.8x the sector's annualized pre-impairment profit for the first nine months of 2017, which means that lenders may need further capital support if additional credit losses emerge.

Fitch also noted that Ukraine's largest lender, PAO KB Privatbank, which was nationalized at the end of 2016, is receiving additional capital support to fully reserve its problem assets, but the associated additional impairment provisions in the last quarter are likely to keep the Ukrainian banking sector in the red for the full year.

The rating agency also said that despite the cleanup and recapitalization of Ukrainian banks, there is still a significant number of small and poorly capitalized local players on the market, which makes further consolidation likely.

As of Dec. 6, US$1 was equivalent to 27.11 Ukrainian hryvnia.