Total amount of commercial banks assets continues growing. As of September 1, 2000 consolidated assets of Ukrainian banking system total to some USD 8.4 bln., which is about 14 percent higher compared to that of September 1999.
Structure of assets and liabilities has not experience any substantial changes over the last year. On the asset side the largest items remain loans and cash in vault and due from banks – some 43 and 17 percent respectively. These are also the ones that show the most significant increase for the last year (see the table above).
On the liabilities side funds of businesses and non-government organizations (30 percent) and shareholder’s equity (21 percent) are the biggest proportion of the liabilities. The positive signal is increased inflow of funds from business and households, which is a probable effect of rise in deposit interest rates, emergence of new banking services, and growing credibility to banking system.
Consolidated Income Statement of Ukrainian Commercial Banks
As consolidated income statement suggests net profits of commercial banks decline. Taking into account other trends characteristic of the banking system, in particular shrinking market share of seven large banks, decreasing interest rates on commercial loans, one can attribute the declining profits to increasing internal competitiveness within the banking sector.
Another interesting observation is the size of total interest income the banks earned (some USD 660 mln.) compared to the loans, which stand at about USD 3600 mln. In other words, loanable funds are still very expensive to a borrower, although a decline of their price is observed.