Banks expect growth in funding from population and business in Q2 - NBU survey
This is evidenced by the results of a quarterly survey of banks on the conditions of funding, Ukrainian News Agency reports.
The volume of bank liabilities in the first quarter as a whole increased primarily due to the growth of corporate funds.
At the same time, for the first time since the third quarter of 2021, banks noted a decrease in the amount of funding from the population.
The volume of wholesale funding grew for the second quarter in a row, mainly in individual large banks.
Banks attributed the drop in the funding from households to lower supply, considering the level of interest rates not a significant factor for changing the volume of deposits.
The average cost of funding is generally down for the third consecutive quarter.
Almost three-quarters of respondents reported a decrease in the cost of business funds.
At the same time, the price of deposits of the population increased, mainly from individual large banks.
The cost of wholesale funding has not changed.
Almost all banks expect a decrease in the cost of deposits for households and corporations in the second quarter, while the price of wholesale funding will not change.
The share of funding in currency in the first quarter, according to banks, was almost unchanged, after a steady decline in the previous three quarters.
Three-quarters of respondents expect a renewed trend and a reduction in the share of funding in currency in the first quarter.
The terms of funding is slightly reduced for the second quarter in a row, and this trend according to the expectations of banks will continue in the next 12 months.
The volume of capital over the past 12 months has grown in most banks, while 70% of respondents expect its increase in the future.
Respondents once again called profitability the determining factor of capital growth.
Some banks assume a reduction in the amount of capital due to changes in regulatory requirements or deterioration of macroeconomic forecasts.
Only 15% of financial institutions indicated their intentions to increase the amount of capital in the next 12 months.
Respondents for the second quarter in a row note a decrease in the cost of capital over the past 12 months and expect this trend to continue.
The Bank Funding Survey was conducted from March 18 to April 8, 2024 among bank managers responsible for managing liabilities.
26 financial institutions provided responses; their share in the total assets of the banking system is 96%.
As Ukrainian News Agency earlier reported, the results of the survey reflect the opinion of respondents and are not estimates or forecasts of the National Bank of Ukraine.
A survey on expectations in the third quarter of 2024 will be published in July.
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4 of May 2024
