The volume of non-performing loans (NPLs) in the banking sector was UAH 425 as of July 1, 2023, by UAH 7 billion lower than as of January 1.
The NBU has said this in a statement, Ukrainian News Agency reports.
At the same time, the share of non-performing loans for the half-year due to a reduction in the loan portfolio increased by 0.8 percentage point to 38.9%.
However, in June, the share of non-performing loans in the banking sector decreased by 0.2 percentage point due to the better quality of new loans, mainly provided under government programs, and the write-off of non-performing retail loans.
During the June survey on lending conditions, banks for the first time since the start of a full-scale war noted an increase in demand for consumer loans and the number of approved loan applications for businesses.
The recognition of credit losses by banks this year compared to last year slowed down.
The volume of contributions by banks to reserves for loans since the beginning of the full-scale war reached UAH 103 billion, or almost 15% of the credit working portfolio that banks had at the end of February 2022.
As Ukrainian News Agency earlier reported, the volume of loans issued by commercial banks to the corporate sector and individuals, according to the operational data of the National Bank, decreased by 0.9% in May to UAH 955.251 billion.
At the same time, the assessment of the stability of banks and the banking system continues, according to the results of which individual banks will probably have to reflect additional losses from credit risk.
Before Russia's full-scale invasion of Ukraine, the share of non-performing loans (NPLs) in Ukrainian banks had decreased since 2018 (from 55% to 27% as of March 1, 2022), and the volume of loans in banks was growing.
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