The share of problem loans in Ukraine decreased to 28.6%: the banking sector demonstrates positive dynamics

During the first quarter of 2025, the share of problem (non-performing) loans in the banking system of Ukraine decreased significantly - to 28.6% as of April 1. This is 1.7 percentage points less than at the beginning of the year. The relevant information was published by the press service of the National Bank of Ukraine.

The total volume of non-performing loans (NPL) for the first three months of 2025 decreased by UAH 10.7 billion, or 2.7%, and amounted to UAH 382.6 billion. As noted in the NBU, this positive trend has been continuing since the beginning of 2023 and is a consequence of the targeted policy of banks and the regulator to clean up the loan portfolio.

The main factors behind the decline in the NPL share were banks’ write-offs of both corporate and retail problem loans, as well as an active increase in the volume of high-quality lending in the national currency. In particular, the share of non-performing loans among individuals decreased to 14.3%, and among businesses to 37%. At the same time, the gross volume of loans in Ukrainian banks increased by UAH 40.7 billion, which is an increase of 3.1%.

Positive dynamics are observed in almost all categories of banks. Private Ukrainian banks reduced the share of problem loans to 10%, banks with foreign capital to 10.2%, and in state-owned banks the figure decreased to 41.1%. Although the latter still have the highest level of NPLs, the general trend indicates a gradual recovery of the financial system.

The NBU also reports an increase in demand for loans from both businesses and households. Banks expect further growth in their loan portfolios in the coming quarters, reflecting renewed confidence in the banking system and the overall stabilization of the economic environment.

The reduction in the volume of non-performing loans is an important signal for potential investors and lenders, as it indicates a reduction in risks in the banking sector. Successful implementation of credit policies by banks creates the basis for sustainable economic growth and financial stability in Ukraine.