As of January 1, 2024, the share of non-performing loans (NPL) in Ukrainian banks decreased by 0.8 percentage point against the data of December 1 to 37.4%.
The NBU has said this in a statement, Ukrainian News Agency reports.
The volume of NPL for the year decreased by UAH 9.7 billion to UAH 422.4 billion.
The key factor in reducing the share of NPL is the growth of the loan portfolio, because lending continues in a full-scale war.
Thus, the portfolio of net corporate loans in 2023 grew for seven consecutive months, including outside of government programs.
Retail unsecured consumer and mortgage loans are on the rise.
Despite the active work of banks to settle non-performing loans, their share remains quite high.
A significant reason for this is a full-scale war that has caused a new wave of customer defaults.
According to the NBU analysis, most of the "war" NPLs are not directly related to occupation or destruction, so these borrowers will be able to resume servicing loans with the subsequent recovery of the economy.
Financial institutions actively work with distressed assets, primarily carry out restructuring.
According to the survey, banks restructured UAH 73 billion, or more than 89% of "war" non-performing loans.
As Ukrainian News Agency earlier reported, as of December 1, 2023, the share of non-performing loans (NPL) in Ukrainian banks decreased by 0.7 percentage point against the data of November 1 to 37%.
The share of non-performing loans (NPL) in the banking sector amounted to 38% as of January 1, 2023 against 30% as of January 1, 2022.
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