In Ukrainian banks, problem loans increased again
In January, the amount of non-performing loans in Ukrainian banks increased by UAH 5.6 billion.
She reported about it press service National Bank.
Thus, the share of non-performing loans (NPL, non-performing loan) in the banking sector on February 1 was 38.2% compared to 38.1% on January 1. The volume of problem loans increased by UAH 5.6 billion in a month.
As previously explained in the National Bank, the destruction of assets and collateral, loss of income and deterioration of borrowers’ solvency reduce their ability to service loans, thus the quality of banks’ loan portfolios deteriorates and deductions to reserves increase.
As the recognition of true asset quality continues, NPL volumes will increase accordingly.
Read also: Borrowers Stop Paying Debts: How It Will Affect Banks and the Economy
We remind you:
As of January 1, 2023, the share of non-performing loans (NPL) constituted 38% compared to 30% on January 1, 2022.
