Non-performing loans increase in Ukrainian banks, yet their share decreases – NBU

“The share of NPLs in the banking sector as of Nov. 1, 2023, was 37.7%, which is 0.2 percentage points lower than the indicator as of Oct. 1,” the NBU said in a post on its official Telegram channel.

“The volume of non-performing loans increased by UAH 2.8 billion ($77 million) in a month, while the amount of loans provided by banks increased by UAH 12.3 billion ($337 million).”

The NBU noted that the previous stability assessment results indicate credit risks are properly assessed by most banks.

Before the full-scale invasion of Ukraine by Russia, the share of non-performing loans in Ukrainian banks had been steadily decreasing since 2018 (from 55% to 27% as of March 1, 2022), while the volume of lending by the banks was on the rise.

From January to September 2023, the volume of non-performing loans in the banks decreased by UAH 9.6 billion ($263 million), reaching UAH 422.5 billion ($12 billion) as of Oct. 1.

In April, NBU First Deputy Chairwoman Kateryna Rozhkova predicted that bank losses would reach at least 30% of the credit portfolio.