Banks have been increasing the volume of quality loans since the beginning of the year
5 May 18:07
As of April 1, 2025, the share of non-performing loans (NPLs) in the banking sector decreased to 28.6% or 1.7 percentage points compared to the beginning of the year. This was reported by the NBU, "Komersant Ukrainian" reports.
According to the National Bank, the trend of gradual reduction of non-performing loans has been going on since the beginning of 2023 and now their volume is UAH 382.6 billion.
What caused the decrease inNPLs and in which banks
The key factors behind the reduction in the share of NPLs were
– write-off of corporate and retail NPLs,
– further increase of high quality hryvnia loans by banks.
All groups of banks recorded a decrease in the share of NPLs:
– private Ukrainian banks – down to 10%;
– in banks with foreign capital – to 10.2%;
– state-owned banks – to 41.1%.
As the NBU explains, excluding the debts of the former owners of PrivatBank and old debts before the banking system was rehabilitated during the 2015-2017 crisis, the share of NPLs as of April 1, 2025 is 23.2% in state-owned banks and 17.1% in the banking system as a whole.
Banks record an increase in demand for loans
This year, banks forecast an increase in the volume of their loan portfolios to corporations and households. This is evidenced by the results of the quarterly Bank Lending Conditions Survey.
According to the survey, demand for corporate loans increased slightly in the first quarter, mainly for hryvnia loans. In the second quarter, respondents predicted an increase in demand for all types of business loans.
According to the survey, household demand for loans also increased. Some large financial institutions noted an increase in demand for mortgages. The banking sector also expects household demand for mortgages and consumer loans to continue to grow.
According to the respondents, the debt burden of businesses remained medium, and households’ debt burden remained low.
According to the survey, banks have somewhat eased lending standards for short-term and hryvnia loans to businesses and expect them to be eased further.
The NBU also reminds that lending standards for mortgages and consumer loans have been eased for four quarters in a row.
Which banks lend the most to individuals
The top five leaders in terms of the loan portfolio of individuals include: JSC CB PrivatBank, JSC Universal Bank, JSC Oschadbank, JSC Sens Bank, and JSC FUIB. The total volume of their loan portfolios is 74.56% of the total volume (the share of PrivatBank is 32.14%).
Among the banks with a significant retail loan portfolio (more than 1% of the total retail loan portfolio of the banking system of Ukraine), the following banks have the best quality portfolio: “Universal Bank (the share of non-performing loans is 4.88%), Ukrgasbank (5.83%), PrivatBank (6.89%), FUIB (8.29%) and A-Bank (9.56%).
Structure of the bank’s retail loan portfolio
As of January 1, 2025, consumer loans to individuals accounted for the main share in the structure of the loan portfolio by type of loan – 76.52% of the portfolio. Loans for the purchase, construction or reconstruction of real estate ranked second in terms of portfolio volume (12.7% of the retail loan portfolio). Loans for the purchase of transport accounted for 4.79%, and loans to individual entrepreneurs (IEs) – 5.98%.
Compared to the “pre-war” period, the share of car loans decreased (minus 2.78 percentage points), while the share of mortgage loans increased (plus 1.48 percentage points) and loans to private entrepreneurs increased (plus 1.38 percentage points). The share of consumer loans remained almost unchanged.
