In 2024, Ukrainian banks saw their net commercial loan portfolios grow by ₴65B (21%) and their consumer loan portfolios increase by ₴62B (39%), said Andriy Pyshnyy, Chairman of the NBU. According to him, this results from restored business and household demand for loans and banks’ increased risk appetite. The share of business loans within the framework of the Affordable Loans 5-7-9% program decreased to 34%. Banks are actively increasing their lending to enterprises of various sizes, particularly in agriculture, trade, and industry.
Pyshnyy emphasized that the businesses’ debt burden remains moderate, close to pre-war indicators, and the ratio of retail loans to annual household income is only 10%, indicating neither market is overextended.
In addition, increased competition stimulated banks to reduce the interest rate on business loans to an average of 15% per annum as well as improve the terms on consumer loans. Portfolio quality is also improving – the share of NPLs decreased to 31% as of December 1 2024, six percentage points less than at the beginning of last year.