Business lending in Ukraine in 2024: Results and trends

In 2024, the growth rate of business lending in Ukraine was significantly lower than that of retail lending. According to the National Bank of Ukraine, the growth of business lending was three times slower than that of individuals. The largest reduction in lending was observed in the corporate sector, in particular in hryvnia lending, which decreased by 2.4% (UAH 14.2 billion).

Growth in hryvnia loans to households exceeds business lending

According to the results of the year, hryvnia loans to households increased by 24.5%, amounting to UAH 51.7 billion. This growth is almost three times higher than the growth in business loans in the corporate sector, where the growth was only 9.8% (UAH 50.6 billion). In total, hryvnia loans in 2024 increased by 14.1%, reaching UAH 828.7 billion. At the same time, foreign currency loans decreased by 5.7%, to $6.28 billion.

Corporate lending challenges in economic uncertainty

Rates on new business loans in hryvnia decreased during the year, but increased again at the end of the year due to the increase in the NBU discount rate and inflation. The average rate on new business loans in 2024 decreased from 19.3% to 15.8%, but by December it rose from 14.4% to 14.7%. At the same time, rates on retail loans to the population remained stable at 34%.

Resumption of lending against the background of economic growth

Despite the low growth rates of corporate lending, 2024 was the first year of full-fledged lending recovery in Ukraine after a three-year period of recession. The main factors contributing to this recovery were the stable operation of the banking system, which remains capitalized, liquid and profitable, as well as continued economic growth and an increase in real incomes of citizens. This had a positive impact on the financial condition of borrowers, especially in the retail sector.

State support programs and reduction of lending rates

A positive factor for the recovery of lending was also state programs that supported both individuals and businesses. Programs such as portfolio guarantees, "eOselya", as well as lending under the "5-7-9" program contributed to reducing lending rates and stimulating economic activity. However, financing under the "5-7-9" program decreased somewhat, which was a result of changes in the economic situation.

Lending prospects in 2025

It is expected that lending will continue to grow in 2025, although the pace of this growth may remain heterogeneous depending on the sector of the economy. Government support and the stability of the banking system will contribute to the development of lending to individuals, but for businesses, the issue of high rates and uncertainty remains, which may restrain activity in the corporate sector.