Share Of Npls In Ukrainian Banks Decreased To 30% In 2024 - NBU

(MENAFN- UkrinForm) As of January 1, 2025, the share of non-performing loans in Ukraine's banking sector decreased to 30.3%, which is 7.1 percentage points less than at the beginning of 2024.

That's according to the National bank of Ukraine Ukrinform reports.

“The share of non-performing loans (NPLs) in the banking sector as of January 1, 2025 decreased to 30.3% or 7.1 percentage points compared to January 1, 2024. The share of NPLs in 2024 decreased by UAH 29.1 billion to UAH 393.2 billion. The trend of its gradual decline has been ongoing since the beginning of 2023,” the report says.

The decline in NPLs can be attributed to two key factors: an increase in hryvnia loans by banks and a write-off of non-performing loans, particularly in the retail sector. The share of gross loans in the banking system increased by UAH 167.5 billion or 14.8% over the year.

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Notably, the share of NPLs in the retail loan portfolio decreased by 8 percentage points to 15.5%, and in business loans by 5.2 percentage points to 39%.

Excluding the debts of the former owners of PrivatBank and old debts from before the banking system was restored, the share of NPLs is 18.6%, which is below 20% for the first time since October 2022.

As reported, before Russia's full-scale invasion of Ukraine, the share of NPLs in Ukrainian banks had been steadily declining since 2018: from 55% to 27% as of March 1, 2022.

Since the beginning of 2025, updated approaches to determining and disclosing information on the level of non-performing loans have been in place in Ukraine.

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