Share of NPL in banks down 7.1 pp to 30% in 2024
As of January 1, 2025, the share of non-performing loans (NPL) in Ukrainian banks decreased by 7.1 percentage points against the data of January 1, 2024 to 30.3%.
The NBU has said this in a statement, Ukrainian News Agency reports.
The volume of NPLs for the year decreased by UAH 29.1 billion to UAH 393.2 billion.
The trend of its gradual decrease has been continuing since the beginning of 2023.
Key factors in reducing NPLs:
- further increase in the volume of high-quality hryvnia loans by banks due to the gradual recovery of demand for loans and improvement in lending conditions, in particular, a reduction in lending rates to the level that was at the end of the "pre-COVID" 2019. The volume of gross loans in the banking system in 2025 increased by UAH 167.5 billion, or 14.8%;
- write-off of non-performing loans, primarily retail. The share of NPLs in the retail loan portfolio decreased by 8 pp to 15.5% during this time. At the same time, the quality of settlement and corporate debts improved somewhat - the share of NPLs in business loans decreased by 5.2 pp to 39%.
- A reduction in the share of non-performing loans was recorded in all groups of banks:
- in private Ukrainian banks - to 12.6%;
- in banks with foreign capital – up to 10.9%;
- in state-owned banks – up to 43%.
Excluding the debts of the former owners of JSC CB PrivatBank and old debts from the time before the banking system was restored during the crisis of 2015–2017, the share of non-performing loans as of January 1, 2025 is 24.8% in state-owned banks and 18.6% in the banking system as a whole (the level is below 20% for the first time since October 2022).
The quality of the performing portfolio remains high: the migration rates of hryvnia loans to households and businesses to non-performing loans are comparable to the pre-war level.
An analysis of the financial condition of corporate debtors shows that loans from good clients prevail in bank portfolios.
At the same time, there is no talk of debt: business maintains a moderate debt load at a level close to pre-war indicators, and the ratio of retail loans from banks and non-bank financial institutions to annual income of the population is only 10%.
According to the results of the quarterly Survey on Bank Lending Conditions, banks will continue to increase their loan portfolio, but the quality of loans, according to respondents, will deteriorate somewhat.
In particular, some large banks had more negative expectations of the quality of the retail portfolio.
As the Ukrainian News agency earlier reported, before russia's full-scale invasion of Ukraine, the share of NPLs in Ukrainian banks had been steadily decreasing since 2018: from 55% to 27% as of March 1, 2022.