The repeated retrospective increase in the bank profit tax from 25% to 50% reduces the capital of the banking system, and accordingly reduced the system's opportunities to increase the loan portfolio by 20%, said Kateryna Rozhkova, First Deputy Governor of the National Bank of Ukraine.

"In general, the potential of the system is great: currently, banks can increase the loan portfolio at least twice without violating capital requirements. However, for individual banks, the potential has significantly decreased," she said in an interview with Interfax-Ukraine.

Rozhkova recalled that the NBU's concerns primarily related to the fact that the war is not over yet, and there may still be losses of assets by banks, deterioration of the quality of individual borrowers, etc., which will require additional capital.

"We urge banks to increase lending and offer rates acceptable to borrowers, and this requires sufficient capital reserves. We hope that there will be no more such unforeseen steps," the banker concluded.

Commenting on the likelihood of arbitrage due to different profit tax rates: 50% for banks, 25% for financial companies and 18% for the rest of the economy, Rozhkova noted that the banking sector is one of the most transparent, has carried out a reform of corporate governance and reporting, so the vast majority of banks do not abuse such things.

"At the same time, the taxation of such markets should be the same. Therefore, the same tax rate for banks and financial companies is justified," she said.

As reported, according to preliminary data, Ukrainian banks received UAH 103.69 billion in net profit last year, which is 24.6% more than the figure for 2023.

Banks paid UAH 83.72 billion in income tax, compared to UAH 76.64 billion in 2023, but the final amount of taxes paid will be clear only after the results of the annual audit of bank statements.

In 2024, after two years of decline, banks' loan portfolios grew by 10.8%. In particular, hryvnia loans to the corporate sector increased by 9.8%, or by UAH 50.6 billion, and to the population - by 24.5%, or by UAH 51.7 billion.

At the same time, foreign currency loans in dollar terms decreased: to the corporate sector - by 5.2%, or by $332 million, to the population - by 15.5%, or by $49 million.