Lending is growing, risks are falling: what the new NBU data shows
6 February 20:25
Ukraine has seen high lending rates for the second year in a row. According to the results of December 2025, the volume of hryvnia loans to both businesses and individuals grew by more than a third year-on-year.
The National Bank notes that credit growth is accompanied by a cleanup of bank balance sheets and a record decline in the share of non-performing loans, according to "Komersant Ukrainian".
What the NBU data shows
According to the National Bank of Ukraine, in December 2025:
- hryvnia loans to businesses grew by 35.6% year-on-year;
- loans to individuals increased by 32%.
In 2024, the growth rate was 21% for businesses and 38% for individuals.
The NBU has recorded steady expansion of banks’ loan portfolios for the second year in a row, despite military risks and restrained macroeconomic policy.
Who gets the most loans
The main driver of growth was hryvnia loans to the private sector.
During 2025:
- net loans to small and medium-sized businesses grew by 32.9%;
- loans to large private companies increased by 29.7%;
- state-owned companies also actively borrowed.
The NBU notes that banks are gradually easing lending conditions and expect further growth in demand from businesses.
What is happening with problem loans
In parallel with the growth in lending, banks are reducing the share of non-performing loans (NPLs).
The volume of gross hryvnia corporate loans, including non-performing loans, decreased by 2% y/y. The main reason is the termination of recognition of old assets by state-owned banks.
In particular, in December, PrivatBank stopped accounting for about UAH 140 billion of such assets.
As a result
- the share of NPLs in the banking system decreased from 24% to 14% as of January 1, 2026;
- in state-owned banks, it is less than 20%;
- in private banks, it is 8.4% (Ukrainian capital) and 6.5% (foreign capital).
This is the lowest level of problem loans in over 15 years.
Bank profitability and the role of lending
The National Bank emphasizes that active lending has been supporting the profitability of the banking sector for four consecutive quarters.
According to preliminary estimates, solvent banks received UAH 126.8 billion in net profit in 2025.
At the same time, banks remain optimistic:
- more than 75% of financial institutions plan to increase lending to businesses in the near future.
Why the growth potential has not yet been exhausted
Despite the rapid recovery of lending, the level of debt burden in Ukraine remains low compared to Europe.
According to the NBU:
- the ratio of all gross loans to the population to GDP is 3.4%;
- unsecured loans — 2.8%.
These figures are significantly lower than in most European countries, which, according to the regulator’s estimates, indicates considerable room for further growth.
