Ukrainian banks expect an increase in lending and an increase in portfolio quality.

Banks expect an increase in consumer and commercial lending volume over the next 12 months, and for the first time since the end of 2021, they forecast an increase in loan portfolio quality, the NBU reported.

It is noted that banks have improved their assessments of the main lending indicators. The demand for corporate and retail loans increased, and interest was focused on long-term hryvnia loans for small and medium-sized enterprises. Demand for working capital, capital investment, and debt restructuring is also increasing, while rates for SMEs remain low. Therefore, financial institutions expect increased demand for business loans in the second quarter.

As for consumers, the demand for household loans was supported by better consumer sentiment. In the future, banks expect demand to increase for consumer loans among the population, but the demand for mortgages will remain stable.