Lending becomes a driver of banking sector growth: profit reached UAH 39.9 billion

Lending activity remains the main factor in the development of banks in Ukraine. According to the results of the III quarter of 2025, the rapid growth of hryvnia loans provided banks with a profit of UAH 39.9 billion. The share of interest income from loans in total interest income increased to 47.8%, which demonstrates the key role of loans in shaping the profitability of the sector.

As noted by the National Bank of Ukraine (NBU) in its review of the banking sector for the III quarter, long-term loans for capital investments grew the fastest. The share of such loans in the net hryvnia portfolio of businesses exceeded 25%, which indicates active financing of strategic projects of enterprises.

Thanks to affordable lending conditions, the portfolio is growing mainly outside the limits of state support. The share of subsidized loans in the hryvnia portfolio of businesses decreased to 27.4%. At the same time, the volume of loans to enterprises of the defense-industrial complex provided under the state program reached about UAH 5 billion.

Business loans continue to demonstrate high dynamics: private companies and individual state-owned enterprises in the fields of trade, engineering, and energy were the most active borrowers. Net hryvnia loans to businesses in October 2025 increased by 35.2% y/y, while to individuals - by 32.3% y/y, which exceeds the level before the start of a full-scale war.

Lending to the population also remains dynamic: gross loans to individuals increased by 24.3% in September. Unsecured loans dominate the portfolio, but the share of mortgages increased to 13.4%. Bank liabilities continue to grow mainly due to household funds, while the level of dollarization of individual deposits decreased to 33.6% due to faster growth in hryvnia deposits.

Interest rates on loans and deposits remained relatively stable during the quarter. Interest rates on hryvnia loans to businesses decreased to 15.3% per annum, and in foreign banks - to 13.7% per annum. At the same time, the regulator warns that the introduction of an increased income tax rate of up to 50% in 2026 may negatively affect the stability of the banking sector, lending activity and the privatization process of state-owned banks.

The NBU notes that banks continue to record an increase in demand for loans from businesses and the population and expect a further increase in lending volumes over the coming year, which supports the stability and development of the financial sector.