The National Bank of Ukraine published banking sector statistics showing the non-performing loan (NPL) ratio decreased to 30.3% as of 1 January 2025, down 7.1 percentage points from 1 January 2024, continuing a gradual decline in NPL volumes since the beginning of 2023. The decline was attributed to growth in high-quality hryvnia lending as demand and lending conditions improved, including lending rates returning to end-2019 levels, and to NPL write-offs mainly in retail portfolios. The retail NPL ratio fell by 8 percentage points to 15.5%, while the corporate NPL ratio fell by 5.2 percentage points to 39%. By bank group, the NPL ratio was 12.6% at Ukrainian private banks, 10.9% at foreign-owned banks and 43% at state-owned banks; excluding debts of the former owners of CB PrivatBank JSC and legacy pre-rehabilitation debts, the NPL ratio was 24.8% for state-owned banks and 18.6% for the banking system overall, below 20% for the first time since October 2022. The performing portfolio was described as remaining high quality, with migration rates for hryvnia retail and corporate loans comparable to pre-war levels, and borrower leverage characterised as moderate. The quarterly Bank Lending Survey indicated banks intend to keep expanding loan portfolios, while respondents expect some deterioration in loan quality, with some large banks more pessimistic about retail portfolio performance.
National Bank of Ukraine 2025-02-07
National Bank of Ukraine reports banking sector NPL ratio down to 30.3% as of 1 January 2025
The National Bank of Ukraine reported a decrease in the non-performing loan (NPL) ratio to 30.3% as of 1 January 2025, a 7.1 percentage point drop from the previous year, due to improved lending conditions and NPL write-offs. The retail NPL ratio fell to 15.5%, while the corporate NPL ratio decreased to 39%. The overall NPL ratio for the banking system dropped below 20% for the first time since October 2022, with Ukrainian private banks at 12.6%, foreign-owned banks at 10.9%, and state-owned banks at 43%.