The banking sector expects loan portfolios to grow during the year.

According to the results of a quarterly NBU survey on lending conditions, improvement in the main indicators continues to be observed – most respondents expect an increase in lending to enterprises and individuals in the next 12 months, according to the NBU report.

In particular:

1. 84.7% expect that their loan portfolio will grow, albeit insignificantly, while 23.3% expect that the quality of their loan portfolio will decrease insignificantly, and 58.8% do not expect any change.
2. 48.9% also expect insignificant growth in deposits.

“The demand for corporate loans continued to recover in the fourth quarter of 2023, as it did throughout the year. For the first time in the last five quarters, the demand for large enterprises grew more noticeably than the demand for small and medium-sized business loans,” the NBU noted.

At the same time, the demand for mortgages decreased, which interrupted its upward trend at a pace that was higher than annual growth. At the same time, the demand for consumer loans has not changed.

Respondents forecast a further increase in demand for business loans in the first quarter of the year. Most are for hryvnia and short-term loans, as well as loans for large companies.

Demand for mortgages is expected to decrease, while demand for consumer loans remains unchanged.