2006: A Banner Year For The Ukrainian Banking Sector

According to the National Bank, profits for the Ukrainian banking sector more than doubled in 2006 reaching USD 911 mln, up from USD 436 mln in 2005. Ukrainian banks also increased their assets by USD 25 bln, bringing their total assets to USD 67.4 bln an increase of 59.2% yoy. Growth in assets was driven by loan portfolio expansion, corporate loans increased by 54% yoy to USD 11.6 bln and retail lending more than doubled to USD 8.8 bln. Alexander Viktorov: In 2006 retail continued in its role as the main growth driver and on the whole there is still no slowdown in sight for the sector. Recent Ukrainian acquisitions by major foreign banks have ushered in better reporting practices at local banks reflected in net income growth.