Financials
The fragmented Ukrainian banking system, which has 168 financial institutions, is entering a period of consolidation as the challenging economic environment has begun to remove weak banks from the market. The share of the 15 largest banks in the total banking assets of the country rose by 5p.p. to 70% in 9M14, while the share of the three biggest institutions now accounts for 34% of total assets (as of Sept 30). The steep hryvnia devaluation of about 40% in 9M14 is hurting banks’ balance sheet structure and has prompted a spike in non-performing loans (NPLs). The share of foreign-denominated assets in total banking assets is now at 41%. The banking sector posted a net loss of UAH 10.6bn in 9M14. The total volume of outstanding loans provided by Ukrainian banks has increased by 7.3% in 2014 to UAH 858bn (through Sept 30) due to the revaluation of foreign loans, with total assets up 2.7% UAH 1.312tn over the same period. In this issue of the Eavex Banking Quarterly, we provide a brief up
