NPLs increased by UAH 5 billion in one month

The volume of non-performing loans in Ukraine increased by UAH 5 billion in just one month, mainly at the expense of state-owned banks. Meanwhile, the volume of loans from banks increased by UAH 4 billion. This was reported by the press service of the National Bank of Ukraine.

According to the NBU, as of August 1, 2023, the share of non-performing loans (NPLs) in the banking sector was 39.3%, which is 0.3 percentage points higher than as of July 1.

The regulator also reminded that the NBU is assessing the stability of banks and the banking system by the end of this year. As a result of this assessment, some banks may need to record additional credit risk losses.

Prior to Russia's full-scale invasion of Ukraine, the share of non-performing loans (NPLs) in Ukrainian banks had been steadily declining since 2018 (from 55% to 27% as of March 1, 2022), while the volume of loans issued by banks was growing.

The increase in NPLs indicates that banks may face problems in repaying loans and losses due to loan defaults. This situation may affect the financial stability of banks and the overall economic situation in Ukraine. The NBU will continue to take measures to ensure the stability of the country's financial system.