During the year of war, the share of non-performing loans increased.

The share of non-performing loans (NPL) in the banking sector increased to 38% on January 1, 2023, compared to 30% on January 1, 2022. The volume of problem loans increased by UAH 87B over the year to UAH 432B, the National Bank reported. As explained by the regulator, the destruction of assets and collateral, loss of income, and deterioration of borrowers’ solvency reduce banks’ ability to service loans, worsen the quality of their loan portfolios, and led to an increase in deductions to reserves. The National Bank predicts further growth of NPL volumes.