The share of non-performing loans (NPL) in the banking sector during November decreased by 1 p.p. to 31% as of December 1, 2024, which is 6 percentage points lower than the indicator at the beginning of the year.
This is stated in the NBU report, Ukrainian News Agency reports.
In November, the volume of NPL in banks decreased by almost UAH 1 billion, while the gross volume of loans granted by banks increased by UAH 37.5 billion.
In total, over the 11 months of 2024, the volume of NPL in banks decreased by UAH 8 billion, and the gross volume of loans granted by banks increased by UAH 187 billion.
The share of non-performing loans to individuals as of December 1, 2024 was 17%, to businesses - 40% (25% excluding debts of former owners of PrivatBank and old debts before the crisis of 2014–2016).
The quality of the portfolio is improving.
In the retail portfolio, over the past 12 months, the migration of hryvnia loans to the third stage under IFRS 9 has decreased to 4% (relative to the volume of loans in the first and second stages) and has already reached the pre-war level.
In the corporate portfolio, about 4% of debtors defaulted over the past 12 months, which is also comparable to the pre-war level.
NPL settlement is one of the priorities of the Lending Development Strategy.
It is noted that the National Bank, together with the IFC, will work on the legal framework for the establishment of asset resolution companies (ARCs) in Ukraine to further strengthen the resilience of the banking sector and its ability to increase lending.
As the Ukrainian News agency earlier reported, before the full-scale russian 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.
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