The National Bank of Ukraine (NBU) published its Q2 2025 Banking Sector Review, reporting that bank asset growth continued for a second quarter, led by higher net UAH lending to clients. The review also notes a declining role for subsidised corporate lending under the Affordable Loans 5–7–9% program and an improvement in corporate portfolio quality. Banks’ net assets increased 3.2% quarter on quarter (qoq), reflecting rapid expansion of the client loan portfolio, while holdings of domestic government debt securities fell and certificates of deposit were broadly unchanged. Net UAH loans to businesses rose 9.5%, including 11.3% in the SME segment, with loans over three years’ maturity up 13.5% and agriculture, wholesale trade, financial services, food processing and machine building among the largest recipients. The share of corporate borrowers in default on UAH loans remained just under 3% and the overall non-performing loan ratio declined to 27.0% (16.1% excluding PrivatBank former owners’ debts and state-owned banks’ legacy loans). Liabilities grew 3.5% qoq as household and corporate funding increased, with UAH retail deposits rising each quarter for a year and deposit rates continuing to climb as banks competed for term deposits. The net interest margin rose to 7.5%, but Q2 profit fell 2.1% from Q1 due to higher expenses. In July, the sector met the 10% regulatory capital adequacy ratio except for one small bank, and test calculations indicate one small bank may be at risk of breaching the leverage ratio that takes effect in September.

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