Is business actively taking out loans? Details from the National Bank
20 February 13:45
Net hryvnia loans to businesses and individuals grew rapidly for two consecutive years and increased by more than a third in 2025.
Active lending became a stable source of growth in the banking sector’s net assets, which increased by 11% in the fourth quarter and by 17.2% in 2025, according to the press service of the National Bank, as reported by [Komersant]
The volume of net hryvnia loans to businesses grew rapidly throughout the year. Such a rapid and sustained recovery in lending activity distinguishes the current situation from past crises, which is a result of ensuring financial stability and implementing the measures of the Lending Development Strategy.
SME loans, which are growing by more than a third per year, remain the main component of the hryvnia business portfolio. The revival of lending to state-owned companies, primarily in the energy sector, made a significant contribution to the growth of the portfolio. Lending in foreign currency also intensified in the second half of the year.
All groups of banks increased their loan portfolios during the year, with foreign banks showing the most intensive growth. In terms of maturity, loans with a term of more than three years grew faster, while in terms of sectors, loans to companies in wholesale trade, agriculture, food industry, financial services, as well as enterprises in the energy and machine-building sectors, in particular the defense industry, grew faster.
“We have achieved tangible results in implementing our lending development strategy. This is evidenced, in particular, by the penetration rate of net business loans in the economy, which, after a decade of stagnation in lending, resumed growth in 2024 and rose significantly to 8.7% in 2025,” commented NBU Governor Andriy Pyshnyy.
The National Bank explains that the indicator is still lower than in 2014, but at that time it was supported by a “credit bubble,” in particular due to significant insider lending, which burst during the 2014-2015 crisis and led to huge losses.
“Now the banking system is not amplifying shocks, but supporting the economy. And over time, this support will contribute to the restoration of pre-war credit penetration indicators without excessive risks. The National Bank will continue to maintain a balance between the need to preserve the stability of the system and increase its credit potential, and the system will maintain its speed and quality standards,” the statement said.
According to the National Bank, the implementation of the Strategy also contributed to the revival of unsubsidized lending. During the year, loans on market terms grew four times faster than subsidized loans, and the share of loans under the “5-7-9%” program in the hryvnia business portfolio decreased to 30%.
“The growth of net hryvnia loans to the population over the year revived to 33.9%, including mortgage loans to 35.8%; traditionally, mortgages grew due to loans under the “єОселя” program. The growth in the volume of car loans is noticeable,” the report says.
In December, the share of non-performing loans fell to its lowest level in more than 15 years (13.9%). The share of defaults by corporate borrowers on hryvnia loans remained below 3%, the average rate before the full-scale invasion.
Bank liabilities grew by 12.3% in the fourth quarter and by 16.1% over the year due to the inflow of funds from businesses and the population. The acceleration in the growth of business funds in the last quarter repeated the trend of previous years.
The share of term deposits for the quarter remained virtually unchanged at 33.8%, while the dollarization rate of household deposits fell to 33.2% (this trend has continued for the third quarter in a row).
“Market rates on hryvnia loans to businesses rose temporarily in November, but fell to 15.2% per annum in December. This is only 0.5 percentage points higher than at the beginning of the year. Interest rates on loans to individuals rose by 1.3 percentage points to 28.7% per annum during the quarter,” the National Bank reported.
According to preliminary data prior to the annual audit, banks earned UAH 126.8 billion in profit in 2025, almost half of which was generated by state-owned banks. The main source of profit remained net interest income, given the stable profitability of loans and the growth of the portfolio. The main factor in profit growth compared to last year was the abandonment of the increased tax rate of 50%, which will return in 2026. At the same time, the sector’s return on equity before tax gradually declined to 50% in 2025, compared to 52.4% in 2024 and 58.6% in 2023.
Throughout 2025, the regulatory capital of the banking sector increased, supporting the ability of banks to increase lending volumes. The National Bank continues to implement regulatory changes in line with European standards and, since the beginning of 2026, has begun its traditional stability assessment.
