The share of non-performing loans in banks grew to 38.8% in the first quarter

The share of non-performing loans (NPL) in the banking sector amounted to 38.8% on April 1, 2023 and grew by 0.7 percent. p. compared with 38.1% on January 1. The volume of non-performing loans for the quarter grew by UAH 2 billion to UAH 434 billion. This is stated in NBU data.

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Problem loans

Banks continue to recognize credit losses — since the beginning of the full-scale war, the volume of allocations to reserves for loans has exceeded UAH 107 billion and constitutes more than 13% of the loan portfolio that banks had at the end of February 2022.

Potential losses of the loan portfolio as a result of the war, economic crisis and energy terror of the aggressor country can reach 30%.

At the same time, prolonged full-scale hostilities have a negative impact on the dynamics of lending. The total volume of loans in the first quarter decreased by UAH 14.5 billion or by 1% to UAH 1.119 trillion as of April 1, 2023.

Before the full-scale invasion of Russia into Ukraine, the share of non-performing loans in Ukrainian banks has been decreasing since 2018 (from 55% to 27% as of March 1, 2022), and the loan portfolio — Russian

Let’s remind

The National Bank begins an assessment of the stability of banks to assess the impact of military aggression on the quality of bank assets, losses to capital and the ability of banks to independently restore capital.

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Source: Ministry of Finance

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