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The non-bank financial sector in Ukraine is slowly recovering, and credit unions have managed to increase their assets.

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This has happened for the first time in two years, according to a review of the non-banking financial sector for the second quarter of 2023. The volume of life insurers’ assets during the reporting period increased for the second quarter in a row, by 4%. At the same time, risk insurers’ assets decreased slightly. The insurance market remains profitable. The return on capital for risk insurers is commensurate with previous years (6%), and life insurers recorded a record quarterly profit.

As well, the almost two-year decrease in credit union assets stopped in the second quarter. Assets grew slowly in most credit unions, and at the end of the quarter, they had only reached 60% of their pre-war level. New loans grew by almost a third in the quarter for the second quarter in a row. The most notable are private loans for real estate construction, repair, and reconstruction. Due to this, the loan portfolio increased slightly, by 5%. However, a significant share of loans in the portfolio remain overdue for more than 90 days.

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