Over the past year, the share of NPL loans in the banking system decreased to 37.4%.

As noted by the NBU, this is 0.8 percentage points below the January 1, 2023, indicator. The volume of NPL decreased by ₴9.7B for the year to ₴422.4B.

The regulator explained that the key factor in reducing NPL’s share was growth in loan portfolios. In 2023, thanks to improvement in demand for hryvnia loans due to the recovery of business activity, corporate loan portfolios grew for seven months in a row, including outside state programs. Unsecured consumer retail and mortgage loans are also growing.

“Other reasons for the reduction of the share of NPLs are the restructuring and subsequent restoration of problem debt servicing by corporate clients, which took place mainly in state banks, as well as the write-off of non-performing loans to individuals,” the NBU reported.

Thus, in October 2023, non-performing business loans accounted for 31% of their total volume. More than half of the current volume of NPLs accumulated in the retail portfolio during the war.