The amount of non-performing loans (NPL) in the banking sector as of July 1, 2023, was UAH 425B, which is UAH 7B lower than the figure on January 1, reported the National Bank. At the same time, the share of non-performing loans increased by 0.8% to 38.9% due to the reduction of the loan portfolio for the first half of the year, the bank report says.
However, in June, the share of non-performing loans in the banking sector decreased by 0.2% due to better quality of new loans, mainly provided within the framework of government programs, and the write-off of non-performing retail loans. In a June survey of lending conditions, banks reported growth in demand for consumer loans and in the number of approved business loan applications for the first time since the start of the war. Recognition of credit losses by banks slowed down this year compared to last year.