Please use symbol entry at top right of page to search

Ukraine's banking sector increases losses as war rages

KYIV (Reuters) - Ukraine's banking system posted a net loss of 7.4 billion hryvnias ($253 million) in January-April, a rise from 0.16 billion hryvnias in January-March, as Russia pressed on with its military offensive, central bank data showed on Tuesday.

In 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.

Russia'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.

The central bank said the return on assets ratio of the banking system - an indicator of profitability - had worsened to minus 1.11% as of end-April from minus 0.03% as of end-March.

The central bank has said the war could cause Ukraine's economy to contract by at least one-third in 2022 and drive up inflation to over 20%.

($1 = 29.2500 hryvnias)

(Reporting by Natalia Zinets, Editing by Timothy Heritage)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.