“The share of non-performing loans is falling in Ukraine: the indicator is already 28.6%As of April 1, 2025, the share of non-performing loans in Ukraine decreased to 28.6%. The volume of NPLs decreased by UAH 10.7
billion, the trend continues from 2023.”, — write: unn.ua
The share of non-performing loans (NPL) in the banking sector, as of April 1, 2025, decreased to 28.6%, or by 1.7 percentage points compared to the beginning of the year
In particular, in the first quarter, the volume of NPLs decreased by UAH 10.7 billion — to UAH 382.6 billion. The tendency to gradually decrease this indicator has been continuing since the beginning of 2023.
The NBU singled out the key factors for the reduction of the NPL share:
- write-off of corporate and retail non-performing loans. The share of NPLs of individuals decreased by 1.2 pp to 14.3% in the first quarter, and that of businesses – by 1.9 pp to 37%;
- further increase in the volume of high-quality hryvnia loans by banks. The volume of gross loans in banks increased by UAH 40.7 billion, or by 3.1% in the first quarter.
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A decrease in the share of NPLs was recorded in all groups of banks:
- in private Ukrainian banks – to 10%;
- in banks with foreign capital – to 10.2%;
- in state-owned banks – to 41.1%.
It is also reported that if we do not take into account the old debts of the banking crisis of 2015–2017 and the debts of the former owners of JSC CB “PrivatBank”, the share of NPLs is currently 23.2% in state-owned banks and 17.1% in the system as a whole.
At the same time, according to the results of the NBU’s quarterly survey on lending conditions, banks are recording an increase in demand for loans from both businesses and the public. Over the next 12 months, financial institutions expect a further expansion of the loan portfolio.
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