2024-05-02T10:44:00+03:00 Politics 2024-05-11T04:02:04+03:00

Ukrainian news

Ukrainian news

Share of non-performing loans in banks down 1.3 percentage points to 36.1% in Q1

Share of non-performing loans in banks down 1.3 percentage points to 36.1% in Q1

The share of non-performing loans (NPL) in the banking sector on April 1, 2024, was 36.1%, down 1.3 percentage points on January 1, 2024.

This follows from a statement by the National Bank of Ukraine (NBU), the Ukrainian News agency reports.

The key factor in the reduction of the share of NPLs is the growth of the working loan portfolio, which during the 1st quarter grew by UAH 34.6 billion, or by 3.1%.

The volume of non-performing loans decreased by UAH 2 billion in the first quarter to UAH 420.3 billion, mainly due to the write-off of non-performing retail loans by banks with Ukrainian private capital.

Banks' expenses for deductions to loan reserves remain low, and the level of defaults is decreasing.

The portfolio of net hryvnia corporate loans has been growing for three consecutive quarters, in particular outside of state programs, thanks to the revival of demand for hryvnia loans due to the recovery of business activity.

Retail unsecured consumer and mortgage loans are growing.

As the Ukrainian News agency earlier reported, before the full-scale invasion of russia into Ukraine, the share of non-performing loans (NPL) in Ukrainian banks began to decrease from 2018 (from 55% to 27% as of March 1, 2022).