Business lending in Ukraine is on the rise, propelled by farmers and builders.

The Banking Sector Review for Q1 2025 shows that banks are increasing the pace of business lending while also extending loans to the consumers. As a result, the growth of the net commercial hryvnia loan portfolio accelerated to 9.5% from the previous quarter and 28.4% year-over-year.

“Traditionally, loans to farmers, wholesale trade enterprises, and sectors like construction and mechanical engineering have shown growth,” reported the NBU.

Additionally, the net consumer hryvnia loan volume rose significantly, increasing by 6.7% quarterly and 35.9% annually. Meanwhile, the rate of non-performing loans fell by 1.7 percentage points quarterly and 7.5 percentage points annually, reaching 28.6%.

“The profitability of the banking sector is normalizing, with the income structure nearing pre-war levels. Healthy profits bolster banks’ capital, enabling them to meet regulatory standards and enhance lending to the economy,” summarized the NBU.