Non-performing loans increase in Ukrainian banks, yet their share decreases – NBU
The share of non-performing loans (NPLs) in the Ukrainian banking sector as of Nov. 1, 2023 amounted to 37.7%, compared to 37.9% as of Oct. 1, although their total value had actually increased, Ukraine’s National Bank has revealed.
“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.
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