Kyiv.Ukraine.Ukraine Gate – November 2,2021- The volume of non-performing loans in Ukrainian banks shrank by 56 billion UAH in the period from January to September 2021.
“The volume of non-performing loans in Ukrainian banks decreased by 56 billion hryvnia in January-September 2021. The share of non-performing loans from the beginning of the year decreased by 7.7 percentage points, from 41.0% to 33.3%.
The National Bank notes that this is the best result since the beginning of 2017, when the volumes of non-performing loans were determined according to the updated methodology. The quality of loan portfolios in banks of all categories has improved. The best result in banks of foreign banking groups (with the exception of Russian banks) was less than 8%. The share of non-performing loans in the portfolios of private commercial capital banks decreased to 10.5%. This roughly corresponds to the target level of 10% by the end of 2024, envisaged in the institutional strategy of the NBU.
Where state-owned banks showed the best result: they reduced non-performing loans by 35 billion hryvnia since the beginning of the year, but still collected more than 70% of the banking sector’s non-performing loan portfolio.
State-owned banks continue to implement non-performing loan reduction plans approved by the Financial Stability Board. This is a necessary precondition for increasing investment attractiveness and one of the structural beacons of the Ukraine cooperation program with the IMF.
The share of non-performing loans in the Ukrainian banking sector decreased by 87 billion hryvnia to 310 billion hryvnia. In January-June 2021, state-owned banks reduced the non-performing loan portfolio by 5% to reach 295 billion hryvnia in 2020.
