By KYIV. Nov 1 (Interfax-Ukraine) – The share of non-performing loans (NPL) in the banking sector reached 37.9% as of September of this year, having decreased by 0.2 percentage points (pp) over three quarters, the National Bank of Ukraine (NBU) has reported.
According to its data, in absolute terms, the volume of non-performing loans in January-September of this year decreased by UAH 9.6 billion, to UAH 422.5 billion, but the number of banks during this time decreased from 67 to 63.
In particular, in September, the volume of NPL in the banking sector decreased by UAH 4 billion, and the share – by 0.6 percentage points thanks to the write-off of non-performing retail loans and the better quality of new loans, mainly provided under government programs, the regulator said. The NBU recalled that in September, one bank was withdrawn from the market.
The National Bank also recalled the results of the October Bank Lending Survey, in which respondents noted an increase in demand for hryvnia corporate and retail loans, and the majority reported an expectation of further growth in loan portfolios in both segments in the next 12 months.
The volume of bank contributions to reserves for loans since the beginning of the full-scale invasion of the Russian Federation reached UAH 107 billion, which is almost 13% of the loan portfolio that banks had at the end of February 2022.
“At the same time, an assessment of the stability of banks and the banking system is underway, based on the preliminary results of which banks as a whole adequately assess credit risks, but individual banks may have to reflect additional losses from credit risk,” the central bank said.
According to the NBU, at the end of September, the volume of the residents’ loan portfolio amounted to UAH 975 billion, of which the corporate sector – UAH 740.4 billion, and individuals – UAH 214.9 billion, while the weighted average rate was 16.3% and 34.6% respectively.
The National Bank recalled that before Russia’s full-scale invasion of Ukraine, the share of NPL in Ukrainian banks had been declining since 2018 (from 55% to 27% as of March 1, 2022), and the volume of loans in banks was growing.
