01 November 2022, Tuesday, 12:31 99

Share Of NPL In Banks Up 2.8 p.p. To 33.6% In September

Редактор: Tetiana Herasimova

In September 2022, the share of non-performing loans (NPL) in Ukrainian banks increased by 2.8 percentage point to 33.6%

The NBU has said this in a statement, Ukrainian News Agency reports.

The share of non-performing loans (NPL) in the banking sector was 33.6% as of October 1, compared to 30.8% as of September 1.

The volume of non-performing loans in September increased by UAH 30.4 billion, in the third quarter - by UAH 59.6 billion.

The consequences of Russian aggression - loss of income, destruction of assets and collateral, deterioration of solvency of borrowers - negatively affect the quality of the loan portfolio, lead to an increase in losses from credit risk and cause a further increase in the share of NPL.

Because banks are allowed to carry out flexible restructuring to support debtors, the NPL level will not grow as fast as it might under other conditions.

It is noted that such restructuring will allow a number of debtors to survive difficult times and return to timely servicing of loans.

Significant losses from the deterioration in the quality of loans will reduce the capital of banks.

The National Bank estimates at least more than 20% potential losses in the value of the loan portfolio.

Increased credit risks are reflected in bank reserves.

The National Bank, together with banks, is working to preserve the stability of the banking system and, after recognition and correct reflection of losses by banks, will give financial institutions enough time to restore capital.

As Ukrainian News Agency earlier reported, the share of NPL in the loan portfolio decreased by 11% in 2021 - from 41% as of January 1, 2021 to 30% as of January 1, 2022.

In 2020, the share of NPL in Ukrainian banks decreased from 48.4% (as of January 1, 2020) to 41% (as of January 1, 2021).

Больше новостей о: Ukrainian banks NPL non-performing loans